PACRA Maintains IFS Rating of TPL Insurance Limited

The IFS rating of (“TPL Insurance” or “the Company”) derives rationale from its positioning within Pakistan’s non-life insurance industry. Operating under the umbrella of TPL Group, the Company continues to transform its operational landscape through ongoing digitalization and customer-centric solutions. Over the years, TPL Insurance has steadily expanded its portfolio, covering Auto, Fire, Marine, Health, Travel, Mobile, Cyber Risk, Engineering, and Agriculture segments, offered under both Conventional and Takaful windows. During CY25, the Company introduced several enhancements to its mobile application, React Native Stack, incorporating features such as Digital OPD, Fast Payment Gateway, Call Back function, Shop & Solar Insurance, ScanMyCow, Surveyor App, and Carculator (Microinsurance). Furthermore, the Company strengthened its market presence through the launch of Titania, offering customized solutions to the high-net-worth segment under both Conventional and Takaful platforms. The Company achieved Gross Written Premium (GWP) of PKR 5.7bln (CY24: PKR 5.0bln) attributed to an increase in business from the Takaful window operations (CY25: PKR 3.3bln; CY24: PKR 2.5bln). In terms of segment-wise contribution, Motor remained the dominant segment, accounting for approximately ~70% of GWP, followed by Fire & Property (~10%) and the Miscellaneous segment (~8%). Although the claims surged by 30%, the Company’s performance improved, with underwriting profit increasing to PKR 88mln (CY24: PKR 37mln), attributable to ongoing product diversification initiatives and prudent reinsurance practices. The Company’s claim ratio witnessed an uptick while the combined ratio remained elevated. Total investments moderated slightly due to the strategic divestment of shares from TPL Properties and the Mutual Funds. The investments remained concentrated in the term deposits during the period, causing a decline in investment income due to monetary easing. On the financial risk front, the Company continues to maintain an adequate liquidity profile, with a significant portion of funds deployed in liquid bank deposits. Engagement with a well-rated panel of reinsurers further strengthens the Company’s risk management framework. Equity levels remained adequate, aligning with the latest minimum capital requirements (MCR) prescribed by the Securities and Exchange Commission of Pakistan (SECP). The sponsors demonstrate strong financial strength and relevant industry expertise, with appropriate representation on the Board. Overall, governance and control frameworks remain adequate, supporting the Company’s strategic direction and effective oversight. The proposed acquisition of the Company’s shares and transfer of control, beyond the thresholds stipulated under Section 111 of the Securities Act, 2015, is at the final stage. TPL Corp has signed a Share Purchase Agreement (SPA) with Jazz International Holdings Limited (JIHL) for the divestment of its ~53.81% stake in the Company for PKR 30 per share. For this, the shareholdings of 17.0% held by FinnFund and 15.85% held by DEG will be acquired by TPL Corp and will not constitute part of the public offer. JIHL is required to obtain at least 50% of the voting shares. In pursuance of this, Jazz International Holdings Limited has extended a public offer to acquire an additional 6.67% stake (excluding the shares held by FinnFund and DEG) at PKR 30 per share. Lately, JIHL extended the timeline for Public Announcement of Offer by ninety (90) days, revising the deadline to June 5th, 2026.
The rating depends on the Company's ability to diversify its revenue stream. The inclusion of foreign partners is expected to provide oversight and remains imperative to the overall risk profile of the Company. Prudent management of business and financial risk remains crucial for the ratings.

About the Entity
TPL Insurance Limited was incorporated in 1992 as a publicly listed Company. The principal activity is managing non-life insurance through the Conventional and Window Takaful operations. The Sponsors own a major stake of ~54.5%, through TPL Corp Limited (~53.81%), and TPL Holdings (~0.73%). Foreign companies hold ~32.9% stake, with prominent shareholding held by DEG - Deutsche Investitions- und Entwicklungsgesellschaft MBH (~15.85%), and Finnish Fund for Industrial Cooperation Ltd. (~17.00%). The remaining stake (~12.6%) is held by mutual funds, individuals and others.