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PACRA Maintains IFS Rating of Habib Insurance Company Limited

Lahore, December 10, 2020 (PPI-OT): The rating incorporates the Company’s association with astute sponsors Habib Family. This provides a sound basis for governance while providing stability through group business. The rating acknowledges HIC’s corporate strategy to increase its position on the market by prudent underwriting practices while focusing on bottom-line growth. The company’s GPW remains steady, reflecting market penetration despite Covid-19. Product innovation and elongated market outreach, capitalizing on the Habib group, bodes well for HIC’s business profile. HIC maintains a multi-faceted investment portfolio that supports risk absorption.

Prior to COVID-19, the general insurance industry witnessed a growth of 11% YoY. The current pandemic affected the volumes, which led to a contraction in the growth. However, volumes have picked up post-June 2020 amidst increase in economic activities throughout the country. Upsurge in auto sales and health products has been pivotal. Underwriting profitability i.e. core business has been maintained through reduced management expenses while innovative products are being envisaged. Investment income is being routed through equities, amid upsurge in PSX and diminished interest rates.

The rating relies upon improving the relative position of the product on the sector. In addition, the future perspectives of the company will require further improvements in business size, underwriting profitability and investment income. As the company grows, the liquid profile must be enhanced.

For more information, contact:
Analyst
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
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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