Lahore, November 24, 2015 (PPI-OT):The Pakistan Credit Rating Agency (PACRA) has maintained the Insurer Financial Strength (IFS) rating of Shaheen Insurance Company Limited (SIC) at “A-” (Single A minus). The rating denotes strong capacity of the company to meet policyholder and contractual obligations.
The rating reflects SIC’s strong parentage – Shaheen Foundation – providing needed financial support and spearheading rationalization of business operations and control environment through active vigilance at board. Shaheen Insurance has started achieving business volumes, wherein dominating portfolio – motor – is depicting good underwriting results, providing space to the company to revive other segments.
The liquidity is improving with quality business expansion. This provides comfort against the outstanding liabilities net of reinsurance of the company; though still high. The bottom-line support from investment income is expected to improve gradually. Nevertheless, the company is carrying a sizeable quantum of illiquid non-earning assets, reflecting drag on its financial profile, though efforts are being made to minimize the ensuing impact.
The rating is dependent upon sustained improvement in business profile of the company with enduring emphasis on profitability. Uptick in the liquidity position viz-a-viz claims liability and rationalization of insurance assets and liabilities would be essential.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425