Lahore, February 14, 2023 (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. During 9MCY22, Company earned GPW of PKR 3,127mln (incl takaful) owing 14.2% growth on YoY basis (9MCY21: PKR 2,738mln). Fire and Property segment reported a growth 30.1% followed by marine and aviation (28.9%), motor (14.2%), miscellaneous (9.2%), and health (4.3%).

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 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 a 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 CY22, the economy faced multiple challenges i.e. natural disasters (Floods), the political instability trickles down toward a dip in business activities. Reduction in management expenditure and product innovation shall remain crucial for the industry participants in order to solidify their 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