PACRA Maintains IFS Rating of Askari Life Assurance Company Limited

The assigned rating of Askari Life Assurance Company Limited (“Askari Life” or “the Company”) reflects its strong ownership structure and strategic affiliation with Army Welfare Trust (AWT), which holds a majority shareholding. AWT is a well-established and financially sound sponsor with diversified interests across multiple sectors, providing strong governance oversight, reputational strength, and implicit financial support to the Company, thereby underpinning its overall credit profile. The preceding credit assessment draws comfort from improved CY25 financial performance, supported by stronger persistency metrics and a sound reinsurance panel, which collectively underpin earnings stability and underwriting resilience. Pakistan's life insurance sector sustained healthy momentum in CY25, with industry GPW rising ~13.8% YoY to PKR ~496.9bn, led by faster private-segment growth (~21.7% YoY) and an improving premium mix toward individual regular business, supportive of the sector's positive growth trajectory. Gross Premium Written (GPW) grew ~62% YoY to PKR 3,277mln (CY24: PKR 2,018mln), against an industry backdrop of GPW of PKR ~496.9bn (+13.8% YoY). Net premium revenue rose to PKR 2,888mln (CY24: PKR 1,693mln), with retention at ~88%. Profitability registered a material step-change, with PAT of PKR 126.0mln versus PKR 15.1mln in CY24, driven by premium volume expansion and improved expense absorption. Persistency strengthened, with first-year persistency at ~70% (CY24: ~66%) and renewal persistency at ~76% (CY24: ~68%). The investment portfolio expanded to PKR 3,915mln (CY24: PKR 2,704mln), ~62% deployed in government securities, though investment income moderated to PKR 232mln (CY24: PKR 273mln) on declining benchmark rates. Liquid investments to net claims coverage improved to 8.9x (CY24: 7.8x). The equity base improved to PKR 623.5mln (CY24: PKR 509.4mln); the accumulated deficit under Ledger Account D narrowed to PKR 1,565.8mln (Dec'24: PKR 1,683.8mln). Paid-up capital of PKR 1,501.7mln remains above the regulatory minimum of PKR 700mln. An advance against equity of PKR 730mln awaits conversion. Reinsurance is placed with Hannover Re and Munich Re (both AA- by S&P).
A Positive outlook has been assigned, reflecting expectations of continued underwriting discipline, sustained profitability, strong persistency levels, and stable investment performance over the outlook horizon.

About the Entity
Askari Life Assurance Company Limited (“Askari Life” or “the Company”), formerly known as East West Life Assurance Company Limited, is listed on the Pakistan Stock Exchange and commenced operations in Feb -93. The Army Welfare Trust (the Trust) holds a majority of the shareholding (~66.6%), followed by East West Insurance Company (~19%), while the rest of the shareholding is vested with individuals and directors. The Company’s Board is now chaired by Maj. Gen. Syed Anis Akbar (Retd), HI(M), who succeeded the previous Chairman, Lt. Gen. Nauman Mehmood (Retd), following his resignation after the balance sheet date. The new Chairman brings extensive military and corporate leadership experience, particularly in logistics, procurement, and strategic operations, and continues to contribute to governance and oversight within the Army Welfare Trust framework, while Mr. Jehanzeb Zafer is the CEO of the Company. He is assisted by a team of experienced professionals.