The Pakistan Credit Rating Agency Limited
Press Release


Zeeshan Munir

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PACRA Maintains IFS Rating of Alfalah Insurance Company Limited

Rating Type IFS
(07-Dec-18 )
(19-Apr-18 )
Action Maintain Maintain
IFS Rating AA- AA-
Outlook Stable Stable
Rating Watch - -

The rating recognizes Alfalah Insurance's maintained financial profile, emanating from i) well managed insurance assets/liabilities structure, and ii) investment book that contributes a sizable income stream & provide cushion to the bottom line. Rating also draws comfort from sponsorship of the company. Growth in business volumes of the company is important. The management’s conservative stance, in the form of low risk retention, continues yielding profitability. Positive momentum in volumes is expected to continue on the back of new products. Health and accident segment intends to fortify its position in the general insurance industry via expanding it's outreach. The company is expanding penetration in motor segment; building synergies with group bank – Bank Alfalah. Supporting its prudent risk retention policies, Alfalah Insurance has a sound panel of reinsurers with favourable treaty terms.
The rating is dependent on the company's ability to augment its market position in the competitive landscape, while upholding the underwriting performance. Strengthening of liquid profile is vital along with prudent management of claims and receivables.

About the Entity
Alfalah Insurance Company Limited, commencing business in Sep'06, is engaged in providing non life insurance services. Alfalah Insurance, with its head office in Lahore, operates through two business Hubs North and South with a total of 12 branches. Abu Dhabi Group (ADG), consisting of members of UAE's ruling family and leading businesses, owns Alfalah insurance through key sponsoring individuals and group companies including Bank Alfalah Limited.

The company’s seven member board, including CEO, is chaired by HH Sheikh Nahayan Mabarak Al Nahayan. Three board members come from the sponsoring group; two members represent Bank Alfalah Limited, while one member holds executive position in ADG. The CEO, Mr. Nasar-us-Samad Qureshi, assisted by a team of professionals, possesses around three decades of related experience.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.