Lahore, February 28, 2022 (PPI-OT):The rating takes comfort from IGI’s association with its parent, IGI Holdings, which has injected a sizeable capital into the company. This is preserved mostly in the form of liquid investments. The IGI Holdings Co has an express mandate to proactively support the company in times of need. The top group resources provide strategic direction and oversight. Given the established customer base and stability in the operational performance of the Company, healthy growth in the financial performance is anticipated for the year-end CY21.
Presently, the general insurance industry witnessed a growth of ~19% on a YoY basis as of Sep-21. The insurance industry has undergone prominent changes both in terms of its size and products while entering into untapped sectors. The insurance industry is capturing market share through offering Islamic Takaful Window operations which are gaining market acceptance rapidly. The Company also followed the industry trend and, expanded and recorded growth in its total assets.
The top-line of the Company (GPW) showed a growth of almost 35% (including window takaful operations) over the corresponding period last year. Moreover, the Company has built its liquid investment book to equity ratio which confirms the Company’s ability to cover its short-term due obligations on time quite efficiently. The interest rates have been changing frequently for the last couple of months and the Company reported a decline in investment income because of the rolled-over effect of interest rates.
Upgradation of IT infrastructure has yielded improved efficiency – notably in claims management. Further, the Company continues to enjoy a sound re-insurance panel that provides extensive risk absorption coverage. IGI’s panel includes Hannover Re (rated AA- by S and P), Swiss Re (rated AA- by S and P), MS Frontier Re, Scor Re (rated A+ by S and P), Korean Re (rated A by AM Best), Arig (rated B++ by AM Best), and Pak Re.
The rating is based on the improved financial position and financial performance of the Company. The financial position of the Company has strengthened over the period. The increased GPW is also one of the key rating drivers. The liquid investment book has improved and contributed to maintain the rating.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com