The Pakistan Credit Rating Agency Limited
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PACRA Maintains IFS Rating of Atlas Insurance Limited

Rating Type IFS
(25-Aug-23 )
(26-Aug-22 )
Action Maintain Maintain
IFS Rating AA+ (ifs) AA+ (ifs)
Outlook Stable Stable
Rating Watch - -

In terms of Gross Premium Written (GPW), the general insurance industry has a total size of ~PKR 41bln during 3MCY23 (3MCY22: ~PKR 34bln), exhibiting a growth of ~21.4%. Similarly, the underwriting performance of the industry also improved and reported at ~PKR 1.5bln during 3MCY23 witnessing an increase of ~25% (3MCY22: ~PKR 1.2bln). Improved underwriting and investment performance contributed to the industry's earnings reported at ~PKR 4.1bln during 3MCY23 (3MCY22: ~PKR 3.4bln). However, current economic conditions remain imperative for the overall performance of insurance industry.
Atlas Insurance Limited's ('Atlas Insurance' or 'the Company') rating reflects strong association with Atlas Group ('the Group') that has demonstrated resilience over time. Group holds diversified interest in Auto, Engineering, Power, Financial sectors and Trading. Atlas Insurance has built and sustained its relative position among its peers. The Company generates core income mainly from the insurance business (GPW) as against other companies which garner support from their investment book. The Company has gradually enhanced its reliance on non-captive business. Moreover, prudent underwriting practices along with diversified product slate has helped in achieving healthy underwriting profits. Moreover, the Group provides benefits in terms of sustained low-risk captive business, while ensuring sound governance framework. The Company has a strong panel of reinsurers with favorable treaty terms and prudent risk retention policies. The Company's equity and investment book provides cushion to fulfill the claims without impacting liquidity base.
The rating is dependent on sustained improvement in business and financial metrics of the Company in line with its relative positioning within the industry. At the same time, the liquidity profile should continue to offset the liabilities.

About the Entity
Atlas Insurance Limited - listed on Pakistan Stock Exchange - started operations in 1935. The Company provides all major types of conventional and non-conventional general insurance services and became licensed Window Takaful Operator on 2-Mar-16 by SECP under Takaful Rules, 2012. The Company has a network of 27 branches across the country. Atlas Group - having ~78% stake in the Company - is a leading conglomerate of the country with interests in Auto, Engineering, Power, Financial sectors and Trading.
The Board is chaired by Mr. Iftikhar H. Shirazi. While, Mr. Babar Mehmood Mirza heads the Company as its CEO. He is supported by a team of experienced professionals.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.