PACRA maintains the IFS Rating of Shaheen Insurance Company Limited

The maintained IFS rating reflects Shaheen Insurance Company Limited's ("Shaheen Insurance" or "the Company") continued position as a stable participant in Pakistan's non-life insurance sector, supported by its sponsorship linkage with Shaheen Foundation, which provides governance discipline and implicit financial backing. The Company's dual operating model, comprising conventional non-life underwriting and Takaful Window Operations, remains predominantly conventional (~87% of CY25 GPW), with the latter complementing the Company's core insurance operations. The CY25 business mix remains reasonably diversified, led by Motor (~27% of GPW), Fire (~18%), Aviation (~16%), Health (~13%), and Bond (~12%), limiting exposure to line-specific claims shocks. Captive Group Business, contributing ~15% of total GPW, further provides a relatively dependable premium base with lower exposure to competitive pricing and market cyclicality. On a consolidated basis, net premium grew 27% in CY25 against 2% growth in GPW, reflecting stronger net retention; both gross and net premium contracted in 1QCY26 against a strong prior-year base. More importantly for the Company's risk profile, underwriting profitability strengthened materially, with underwriting results rising 27% in CY25 and 59% in 1QCY26. The loss ratio improved to 45.4% in 1QCY26 (1QCY25: 51.4%), although CY25's ratio increased to 50.1% (CY24: 47.2%). The combined ratio remained broadly stable in the low-to-mid 90s despite higher claims incidence, indicating resilience in the Company's core insurance operations. Investment yields declined to 7.1% in CY25 (CY24: 11.6%) and 2.7% in 1QCY26 (1QCY25: 3.8%). Despite this, consolidated PAT remained broadly stable at PKR 191mln in CY25 (CY24: PKR 190mln), with only a modest decline in 1QCY26, as stronger underwriting results provided an offset to weaker investment income. This supports the Company's capacity to internally generate capital despite a less supportive investment environment. The equity base expanded 17% during CY25, while the Company remains compliant with the applicable minimum paid-up capital requirement for non-life insurers. Liquid investments relative to equity increased to 130% (CY24: 112%), strengthening the liquid financial resources available against policyholder obligations. Liquidity coverage of outstanding claims also improved to 5.4x, reinforcing claims-settlement capacity. Continuity of experienced management and sustained sponsor engagement remain supportive of the Company's governance and ability to meet policyholder obligations.
The rating remains contingent on the Company sustaining the improvement in underwriting performance, with continued growth in net premium and a durable improvement in the combined ratio important to strengthening the underlying insurance risk profile, particularly given the ratio's still-elevated level relative to peers. Maintenance of capital strength, regulatory paid-up capital compliance, and the liquid-investment cushion remain central to claims-paying capacity, while continuity of sponsor support and disciplined governance remain important to preserving the Company's overall financial strength.

About the Entity
Shaheen Insurance Company Limited ('Shaheen Insurance' or 'the Company'), a group company of Shaheen Foundation, was incorporated in 1995 as a public listed company. The Company operates as a non-life insurer, offering conventional insurance alongside Window Takaful Operations through a network of 13 branches across Pakistan. Shaheen Foundation, with diversified interests across aviation, textile, trade, real estate, insurance, health, and education, remains the majority shareholder with ~69.3% stake, followed by General Public (~10.3%), The Hollard Company Limited (~10.1%), Joint Stock Companies (~6.3%), and Central Non-Public Fund PAF (~4.0%). The Company's Board is chaired by Air Vice Marshal Junaid Ahmed Siddiqui (Retd.), while Mr. Syed Rizwan Akhtar serves as CEO, supported by an experienced management team.