PACRA places IFS Rating of the Pakistan General Insurance Company Limited on Rating Watch – Outlook Negative

Lahore, January 25, 2018 (PPI-OT):PGI is braving with stressed times. The company, under the directive of SECP, halted underwriting operations. The regulatory and legal bodies have investigated PGI’s claims towards Pakistan Re-Insurance Company (PRCL). They determined a sizeable amount to be paid back to PRCL which the company has recently paid back. SECP also asked the company to fulfill other parameters to enable resumption of underwriting operations. The management represented that they have complied with all the parameters and now requested to resume operations – final nod is awaited.

In the meantime, the company has been pursuing recovery of receivables, while streamlining legal requirements. The company’s financial profile has suffered significantly on account of payment to PRCL and writing-off of receivables. However, the company has built a considerable investment book – which lends comfort. At the same time, PGI plans to raise a sizeable amount through right shares quantum/ timing of this injection would finally determine the financial risk profile of the company, going forward. PACRA would continue to monitor the developments and update its opinion accordingly.

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
Email: hammad.rashid@pacra.com
Web: www.pacra.com