Analyst
Faraan Taimoor
faraan.taimoor@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains IFS Rating of The Universal Insurance Company Limited
Rating Type | IFS | |
Current (21-Feb-20 ) |
Previous (27-Aug-19 ) |
|
Action | Maintain | Maintain |
IFS Rating | A- | A- |
Outlook | Stable | Stable |
Rating Watch | - | - |
The rating of Universal reflects strong parentage of the company – Bibojee group. The parentage has provided multi-faceted support to the company: a) injection of capital from different times of the crisis, b) sustenance in the cleansing period spanning over a couple of years, c) captive business. The business strategy envisages tapping captive business through co-insurance with an established group, with gradual entry into the market business in the pipeline. Enlistments with some of the leading banks have been completed.
The rating is dependent upon sustained improvement in relative position of the company, augmenting its sustainability, as envisaged by the board and the management. Meanwhile, continued improvement in the financial profile of the company is also imperative for the rating.
About
the Entity
Universal Insurance Company Limited, incorporated in 1958, is listed on Pakistan Stock Exchange (PSX). Majority ownership of the company is held by Bibojee Group (87%), through holding company “Bibojee Services Private Limited” (BSL). Bibojee group is a well-established in having its presence in various industrial sectors including Textile, Auto, Tyres & Rubber and Engineering.
Nine members BoD is constituted by six members from sponsoring family. Two members are employees of the group alongwith an independent director . Board is dominated majorly by sponsor family and is supported by Principal Officer – Mr. Amir Raza, who is an experienced insurance professional long associated with the company.