Lahore, December 20, 2021 (PPI-OT):IGI Holdings Limited (“IGI Holdings” or “the Company”) emerged as a holding company post restructuring of IGI Insurance Limited in 2017, consolidating Packages Group investments in financial sector i.e. Life and Non-life Insurance, Brokerage and an investment holding company. The ratings reflect IGI Holdings strong standing as a HoldCo. with its key underlying businesses performing well in their respective sectors, providing a steady stream of dividends. IGI Investments, the investment arm of the group, has a sizable investment portfolio comprising strong players mainly financed through equity.

IGI General Insurance has shown growth in business volumes as well as profitability, while IGI Life is pursuing it’s growth strategy through market penetration and new products. The dividend flow from IGI Investments, a dominant contributor, increased in 3QCY21 owing to improved performance of the underlying investments. This positively impacted the revenue of IGI Holdings. The financial profile of the Company remains robust with low leveraged capital structure, strong coverage and adequate cushion in financing facilities.

Going forward, dividend income from the subsidiaries is expected to remain sustained in the current economic environment. The Company has a strong governance framework. The system and controls to monitor investments and making key strategic investments are evolving. Ratings depend upon sustained performance of existing strategic investments. Formalizing a strong and effective mechanism for monitoring performance and providing holistic direction to it’s subsidiaries would bode well for the ratings.

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