PACRA maintains IFS Rating of Atlas Insurance Limited

Pakistan's General Insurance industry has a total size of PKR 182bln during CY23 (CY22: PKR 143bln), exhibiting a growth of ~27%, in terms of Gross Written Premium (GWP). The industry reported a growth of ~46% in underwriting results (CY23: PKR 4.7bln, CY22: PKR 3.2bln). The net income of the industry also experienced an increase of ~60% to PKR 18bln during CY23 (CY22: PKR 11bln). Overall, the industry's overall outlook remains stable with substantial liquidity available with players.
Atlas Insurance Limited's ('Atlas Insurance' or 'the Company') rating reflects a strong association with Atlas Group ('the Group') that has demonstrated resilience over time. The Group holds diversified interests in Auto, Engineering, Power, Financial sectors and Trading. Atlas Insurance is a non-life insurance company offering conventional and takaful insurance, where conventional business constitutes the majority (~90%) of the Company’s operations. The rating takes comfort from the Company's healthy business & financial profile. Atlas Insurance holds a sustained relative position among its peers. During CY23, the GPW of the Company posed a growth of (~24%) emanating majorly from the fire & property segment (~45%) followed by marine & aviation (~21%). Moreover, the overall portfolio stood affirmed with value driven growth, as an impact of inflation. The support is also driven by a healthy combined ratio clocked in at (~64.9%). The rating also takes comfort from the Company's robust investment income, which contributes significantly to the overall strength of the bottom line. Strong risk absorption capacity, supported by sufficient liquidity. Atlas Insurance has demonstrated its commitment to the Shareholders by paying dividends, highlighting its financial stability. The presence of internationally recognized and highly rated reinsurance provides support. Effective corporate governance practices bodes well for the Company.
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 ("Atlas Insurance" or "the Company") started operations in 1935 and is listed on the Pakistan Stock Exchange. The Company operates as a non-life insurance provider, offering both conventional and takaful insurance through a network of 28 branches operating nationwide.
The Atlas Group, a leading conglomerate with interests in the auto, engineering, power, financial sectors, and trading, holds (~78%) of the Company's stake, followed by State Life Insurance Corporation (~2.8%), financial institutions & others (~2.8%), and the general public (~16%) of the stake. Atlas Insurance Board is chaired by Mr. Iftikhar H. Shirazi. The CEO, Mr. Babar Mahmood Mirza, is assisted by a team of professionals.