Final PR
The Pakistan Credit Rating Agency Limited

Jhangeer Hanif

Iqra Bashir

Applicable Criteria

  • Methodology | Insurer Financial Strength (IFS) Rating | General (Jun 17) [View]

Related Research

  • Sector Study | Insurance | General (Oct 17) [View]
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PACRA assigns IFS Rating to Excel Insurance
 Rating Type Insurer Financial Strength(IFS)
 Action Initial -
 IFS Rating A- -
 Outlook Stable -
 Rating Watch - -

The rating reflects Excel’s emerging position in the general insurance industry. This is supported by a sizeable and duly compliant capital structure, as a result of latest equity injection. The equity of the company is deployed in liquid avenues. The Investment Policy Statement envisages pre-dominant exposure towards equities (Large, mid and small) with an adequate balance kept in fixed income avenues. The management is confident as to the sustained risk profiling of the investment book, based on historical performance. In times of stress, this remains a challenge. The team has been instituted with the mandate to grow business. The envisaged strategy is conservative with gradual build-up of business. This is led by the astute sponsors, having good understanding of the risks involved.
The rating is dependent upon execution of envisaged business strategy: generation of sustained business volume along with profitability from the core business is important. Meanwhile, liquidity and overall financial risk metrics must be adhered to.
About the Entity
Excel Insurance Company Limited (EICL) is a public limited company. It was incorporated in Pakistan as an unlisted Public Limited Company on 10 August 1991 under Companies Ordinance, 1984 with the objective to carry out General Insurance Business as specified under Insurance Ordinance 2000 and Insurance Rules 2002. EICL obtained business license on 06 October 1994. The company is registered at Karachi, owned by Mr. Ghulam & his family. Mr. Ghulam Muhammad is one of the founder member/sponsors of this company since inception. Mr. Ghulam Muhammad took charges as executive director in 2001 and the company under new direction immediately decided to start making inroad in the market. Dr. Syed Arif Hussain has taken over the position of CEO, who had previously been working as CEO of Pakistan Takaful Company.
The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.