PACRA Maintains IFS Rating of Asia Insurance Company Limited

The assigned IFS rating of Asia Insurance Company Limited ("Asia Insurance" or "the Company") reflects an established, diversified insurance franchise, improving technical performance and adequate financial resources supporting policyholder obligations, while recognizing the Company's relatively modest scale and the need for further balance-sheet strengthening. Asia Insurance's business remains diversified across Fire & Property, Marine, Motor, Health & Personal Accident and Miscellaneous lines, with Fire & Property continuing to anchor the portfolio. The Company remains focused on new product development and IT enhancements, which are expected to support its operational capabilities and future business growth. The strategic association with the InsuResilience Investment Fund (IIF) provided the Company with capital support and strengthened its governance framework through nominee representation. The Fund has, however, recently decided to exit Asia Insurance by divesting its stake to Private Stock Holding Company. The ownership of the current shareholders have become strengthened.

During CY25, the Company's operating and earnings profile showed some improvement. GPW increased by approximately 28% YoY, while net premium increased by approximately 10%, with underwriting expenses rising broadly in line with business growth. The higher premium base contributed to an improvement in the underwriting result, and investment income also increased to PKR 188.8mln (CY24: PKR 151.6mln), supporting overall profitability. During 1QCY26, the underwriting result improved further to PKR 35.1mln (1QCY25: PKR 16.9mln), supported by continued premium growth of approximately 30% in GPW and 38% in net premium during the quarter. This improvement was, however, offset by a net investment loss of PKR 37.9mln during the quarter (1QCY25: investment income of PKR 21.3mln), reflecting mark-to-market volatility on the Company's equity-oriented investment portfolio. As a result, profit after tax for the quarter declined to PKR 6.7mln (1QCY25: PKR 36.2mln), underscoring that earnings quality remains sensitive to investment-side volatility notwithstanding the underlying improvement in core underwriting performance.

The Company's panel of established international reinsurers provides protection against loss volatility and supports its capacity to underwrite business beyond the limits of its standalone balance sheet. The investment portfolio provides liquidity support for policyholder obligations, though its increasing tilt toward equities warrants continued monitoring from a market-resilience perspective. Financial resources continued to build gradually, with equity at PKR 1.2bln and investments of approximately PKR 0.84bln as of Mar'26. The phased paid-up capital enhancement to PKR 1.0bln by end-CY26, as required by the regulator, is yet to be realized. Continued capital accumulation, alongside disciplined underwriting and investment management, therefore remains important for the Company to sustain its current rating profile as it grows.
The IFS Rating remains anchored in the Company's ability to translate premium growth into sustainable underwriting performance, preserve liquid resources and maintain adequate capital and reinsurance protection relative to the risks assumed. Sustained improvement in these areas would support positive rating momentum; while weakening technical performance, liquidity or capital adequacy could exert pressure on the rating.

About the Entity
Asia Insurance Company Limited ('Asia Insurance' or 'the Company') was established in 1979 as a General Insurance Company and is listed on the Pakistan Stock Exchange. The Company operates a network of 30 branches across the country. Mr. Ihtsham ul Haq Qureshi and family holds majority (67.8%) stake in the Company. Whereas InsuResilience Investment Fund (IIF) holds ~25.4% of the shareholding. The Board is chaired by Mr. Ihtsham ul Haq Qureshi, while, the Company is led by Mr. Zain ul Haq Qureshi as the CEO. They are aided by a team of experienced professionals.