Pakistan Credit Rating Agency Limited Maintains IFS Rating of Shaheen Insurance Company Limited
Lahore, November 17, 2016 (PPI-OT):The rating reflects SIC’s strong parentage – Shaheen Foundation – ensuring financial soundness of the company while augmenting it’s business operations and control environment through active vigilance. Shaheen Insurance has sustained market share keeping pace with the industry’s growth. Dominating portfolio – motor – is depicting good underwriting results, enabling the company to nourish other segments. Accumulated losses have reduced significantly, strengthening equity base. The company envisages continuing expanding in motor segment, while exploring opportunities in the energy sector. Major focus is being directed towards tapping potential of captive business – PAF and related.
The liquidity profile needs to be strengthened at a higher rate alongside quality business expansion. This provides comfort against the outstanding liabilities net of reinsurance. The bottom-line support from investment income needs to improve gradually. Nevertheless, the company is carrying a sizeable quantum of illiquid non-earning assets, 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 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