PACRA maintains IFS Rating of Atlas Insurance Limited

Pakistan's general insurance industry has a total size of ~PKR 215bln during CY24 (CY23: ~PKR 182bln), exhibiting a growth of ~18% in Gross Premium Written (GPW). The industry reported an increase of ~100% in underwriting results (CY24: ~PKR 14bln, CY23: ~PKR 7bln). Overall, the investment income experienced an increase of ~95% to ~PKR 39bln during CY24 (CY23: ~PKR 20bln). However, current economic conditions remain imperative for the overall performance of the insurance industry.
The rating reflects Atlas Insurance Limited’s entrenched position in the non-life insurance sector, anchored by its strong association with the Atlas Group, a diversified conglomerate with established presence in the Auto, Engineering, Power, Financial, and Trading sectors. The Company offers both conventional and takaful products, with conventional operations forming the bulk (~90%) of its portfolio. Atlas Insurance maintains a considerably solid market standing with a market share of ~3.4% as of CY24, supported by a diversified business mix, prudent underwriting, and a sound financial profile. In CY24, the Company posted GPW of ~PKR 7.3bln, registering solid growth (~12%), with Fire contributing the largest share (~43%), followed by Motor (~22%), Marine (~21%), and Miscellaneous (~14%) segments. On the net level, the Company retained its premium of ~PKR 3.1bln during CY24 as compared to ~PKR 2.6bln during CY23. This enabled expense control and contributed to a favorable combined ratio of ~68%. Substantially strong investment income continues to underpin the profitability. On the financial risk front, the Company has managed to post a strong level of liquidity. This, along with partnering with the financially strong reinsurers, enhances the Company’s risk absorption capacity. Equity base remains healthy. The Company benefits from a well-structured Board comprising experienced professionals, supported by sound governance practices and a seasoned management team. Continued strategic and financial backing from the Atlas Group remains a key strength, reinforcing stability and long-term business sustainability.
The rating depends on the continuous strengthening of the Company's market position and growing underwriting profits. Consistent support from the investment income remains fundamental for the rating. A sustainable segment mix and efficient expense management are imperative to the financial performance, with further progress envisaged.

About the Entity
Atlas Insurance Limited, which began its operations in 1935 and is listed on the Pakistan Stock Exchange, is a non-life insurance provider. The Company offers conventional and takaful insurance services through a nationwide network of 29 branches. The Atlas Group holds ~78% of the Company's stake, with other significant shareholders including State Life Insurance Corporation (~2.8%), financial institutions & others (~2.8%), and the general public (~16%). The Board is chaired by Mr. Iftikhar H. Shirazi, and the Company is led by the CEO, Mr. Babar Mahmood Mirza, and his team of professionals.