Lahore, February 15, 2022 (PPI-OT):Askari General Insurance Company Limited has a solid risk profile. This is reflected in the assigned rating of the company. Askari General has exhibited sustained business volumes and underwriting performance in recent times through its underwriting strategy, with a focus to augment the bottom-line profitability. This has led to an improved combined ratio; a testament to sustained profitability in recent times. The management efforts for sustaining the overall quality of the control environment are supported by the real-time operating software.
This provides tools for holistic oversight and efficient decision-making. A subsidiary, AskTech, a venture focused on vehicle tracking solutions, has been set up to yield technological synergies; this is expected to create diversification by enhancing customer experience. The continued improvement of Information Technology systems is of prime importance to capture business, with the COVID-19 persistence and changes in business trends.
The Company’s fully functional android and IOS-based mobile app – Ask Health enhanced communication and coordination, facilitated through a 24/7 immaculate call center and brought reduction in Turn Around Time (TAT) in claims processing; therefore, attracting a customer base. The sustained liquidity profile provides a cushion to the risk absorption capacity. Askari Insurance continues to have a sound panel of reinsurers with favourable treaty terms. Going forward, it intends to fortify its position in non-conventional segments, while using alternative distribution channels. The rating, likewise, takes into account Askari General’s association with Army Welfare Trust (AWT).
During CY21, bank financing and automotive sector growth facilitated the industry’s progression. A conservative investment approach was undertaken by the industry participants, with the investment mix majorly construing fixed income securities along with minor equity exposure. As COVID re-emerged through its “Omicron” variant, its potential implications are yet to unfold in the coming year.
Reduction in management expenditure and product innovation shall remain crucial for the industry participants for the solidification of market position. The rating is dependent upon the company’s ability to sustain its market share and its profitability from the core business and investment income. At the same time, the proportional improvement must be recorded in its liquidity.
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