PACRA Maintains IFS Rating of East West Insurance Company Limited

The IFS rating of East West Insurance Company Limited (‘East West’ or ‘the Company’) takes comfort from a stable risk profile supported by the Sponsors. The Company has evolved from being a mid-tier player in the industry to managing a strong capacity to meet policyholders' and contract obligations. The Company is engaged in conventional (~91% of the total GPW) and window takaful operations. During CY24, East West witnessed an uptick of ~26% in the overall GPW reported at ~PKR 8.5bln, while witnessing an uptick of ~30% during 6MCY25, reported at ~PKR 5.1bln. Fire & property remained the top segment, contributing ~36% during the period, followed by engineering (~22%), motor (~18%), marine, aviation & transport (~13%), and miscellaneous (~11%). Solid underwriting performance, posting an uptick of ~49% (CY24) and 45% (6MCY25), along with stable support from the investment book's performance, which grew by ~86% (CY24) and 9.4% (6MCY25), led to a secure and profitable bottom line. However, prudent business underwriting remains essential to sustain profitability. The management vision towards digitization would improve business volumes. On the financial front, the capital structure holds a considerable standing, especially with Sponsors’ injection of ~PKR 800mln through rights issue during CY24. The claims management system remains prudently managed, and the overall financial risk profile remains intact with substantial liquidity on the Company’s balance sheet. A strong panel of reinsurers provides additional protection, instilling confidence in the Company's ability to navigate uncertainties effectively. Strong governance framework and prudent managerial practices bode well for the Company.
The rating is dependent on the Company’s ability to sustain the market share, along with augmenting the profits. The financial risk profile through improved liquidity position must remain in line with the growth. Substantial cushion from the underwriting business, along with strengthening of underwriting discipline, shall remain crucial for the rating, going forward.

About the Entity
East West Insurance Company ("East West" or “the Company") was incorporated as a Public Listed Company (listed on PSX) and became operational in 1983. The Company operates as a general insurance company, with the primary tilt towards the fire & property segment. Yunus family holds the majority shareholding (~69%) of the Company, through individuals (~42%) and the holding company (~27%). The rest resides with the general public. The Board, dominated by the sponsoring family, is chaired by Mr. Umeed Ansari since Apr-24. Mr. Naved Yunus leads the Company as the CEO, supported by Mr. Saad Yunus as the Deputy MD. They are assisted by a professional team.