Askari General Insurance Company Limited

RATING REPORT | Feb-26

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Rating History
Dissemination Date IFS Rating Outlook Action Rating Watch
04-Feb-26 AA+ (ifs) Stable Maintain -
07-Feb-25 AA+ (ifs) Stable Maintain -
07-Feb-24 AA+ (ifs) Stable Maintain -
14-Feb-23 AA+ (ifs) Stable Maintain -
31-Mar-22 AA+ (ifs) Stable Harmonize -
About the Entity

Askari General Insurance Company Limited ('Askari General' or 'the Company') was incorporated in Apr-95. Later, in 1996 the Company was listed on the Pakistan Stock Exchange (PSX). The principal activity includes managing non-life insurance through Conventional and Window Takaful operations in Fire and Property, Marine, Accident & Health, Motor, and Miscellaneous segments.
A major stake is held by Sponsoring group directly through Army Welfare Trust (~59.3%) and indirectly through Directors (~0.74%). Financial Institutions and Mutual Funds hold (~1.09%). The remaining stake ~38.9% is held by the general public.
The overall control of the Company lies with a nine-member Board chaired by Lt. Gen Nauman Mahmood (Retd.), while Mr. Abdul Waheed serves as the CEO. He is assisted by a team of professionals.

Rating Rationale

Askari General Insurance Company Limited ("Askari General" or "the Company”) holds a stable risk profile backed by a substantially strong sponsoring group, Army Welfare Trust ("the Group"). The Company writes non-life insurance business under Conventional Insurance (~87%) and Window Takaful Operations (~13%). Segment-wise, both conventional and window takaful operations (WTO) remain tilted towards accident and health (~39%) of the total GPW. This is followed by motor (~22%), fire & property (~19%), miscellaneous (~14%), and marine & transport (~6%). The Company’s GPW gathered volumetric support (~15.5% growth), while the inflationary impact majorly remained subdued (9MCY25: ~PKR 6,037mln, 9MCY24: ~PKR 5,223mln). This growth was fueled by increased business volumes in key segments, strengthened by robust corporate client relationships and a continued emphasis on high-quality underwriting. The Company reported an underwriting profit of ~PKR 127mln in 9MCY25, which went down from ~PKR 147mln in 9MCY24 primarily due to higher claim ratios in certain business lines. The reduction in underwriting results is largely attributable to monetary easing, resulting in diminished discount rates and the impact of natural disasters.
Additionally, the Company maintains a stable equity base amounting to PKR 3,337mln as of Sep’25 (Sep’24: PKR 3,019mln). During the year, the Company underwent Right Issue, bringing the total paid-up capital to the required compliance threshold for the year 2026. Askari General also benefits from a strong panel of reinsurers under favorable treaty terms. Looking ahead, management plans to strengthen the Company’s topline and bottom line by leveraging alternative distribution channels and diversification of its product portfolio. The Company plans to venture into E-Insurance and insurance of digital assets as part of its future product diversification strategy. In line with the Government of Pakistan’s ongoing Sharia-compliance directive for financial institutions, Askari General is focused on progressively increasing the share of Window Takaful Operations (WTO) in its underwriting portfolio. The rating also reflects significant backing from the sponsoring Group and hinges on the Company’s ability to sustain market share and profitability in its core business, maintain stable investment income, and achieve proportional improvements in liquidity.
Pakistan's general insurance industry holds a total size of ~PKR 170bln during 9MCY25 (9MCY24: ~PKR 171bln), exhibiting a slight decrease of ~0.5% in Gross Premium Written (GPW). The industry reported a decrease of ~50.4% in underwriting results amounting to ~PKR 4.7bln (9MCY24: ~PKR 9.6bln). Overall, the investment income experienced a decrease of ~13.9% to ~PKR 22bln (9MCY24: ~PKR 26bln). The current economic conditions remain imperative for the overall performance of the insurance industry.

Key Rating Drivers

The rating is dependent on the Company's ability to sustain its market share and profitability from the core business along with stable investment income. At the same time, a proportional improvement must be recorded in its liquidity profile.

REPORT CONTENTS
  1. Rating Analysis
  2. Financial Summary
  3. Rating Scale
  4. Regulatory Disclosure

METHODOLOGY

RATING ANALYST

  • Muhammad Azmat Shaheen
  • azmat.shaheen@pacra.com
  • +92-42-35869504
  • www.pacra.com

Askari General Insurance Company Limited


Rating Analysis

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Profile
Legal Structure

Legal Structure Askari General Insurance Company Ltd. ('Askari General' the Company') was incorporated in Apr-95, later it was listed on PSX in1996.


Background

In 1971, the Army Welfare Trust (AWT) was set up by the Pakistan Army for army personnel and their families' welfare. Over time, AWT created considerable footing in the financial space through Askari Bank Ltd., Askari General, and Askari Life Insurance Co. Ltd. Askari General began commercial operations in Oct-95, and was granted a license to operate a Takaful window in Aug-15 by the SECP under the Takaful Rules, 2012.


Operations

The Company writes non-life insurance business under Conventional and Takaful window operations. Segment-wise, the Company is mainly engaged in accident & health, motor, fire & property, marine & transport and miscellaneous. The Company operates through a network of 19 branches across Pakistan.


Ownership
Ownership Structure

A major stake is held by the Sponsors directly through AWT (~59.3%) and indirectly through Directors (~0.74%). Financial Institutions and Mutual Funds hold (~1.09%). The remaining ~38,9% stake is held by the general public.


Stability

The Company has a smooth and sound shareholding, patronizing parentage from the Trust, ensuring stability.


Business Acumen

The Trust entered the financial market through Askari Bank and Askari Life Company Ltd. in 1992. Later, they set up Askari General in 1995. The Company reaps synergistic benefits through these associations.


Financial Strength

The financial strength of AWT is deemed stable where support is being derived from successful business ventures operating in multiple sectors.


Governance
Board Structure

The overall control of the Company lies with a nine-member Board (BoD); out of which, five are Non-Executive Directors, one is an Executive Director (the CEO) and three are Independent Directors including a female Director. The Board of Directors is largely sponsor-led, with five members representing the Trust.


Members’ Profile

Lt. Gen. Nauman Mahmood (Retd.) chairs the BoD since Jan-24 with an overall experience of more than four decades. He has been associated with the Company since Dec-23. Earlier, Lt. Gen Naveed Mukhtar (Retd.) had chaired the BoD for three years, All other Board members possess diversified backgrounds and requisite skilset for strategic decision-making.


Board Effectiveness

The BoD meets quarterly and is assisted by Audit Committee, Executive, Risk Management & Compliance Committee, Ethics, Human Resource and Remuneration Committee, Underwriting, Re-insurance & Co-insurance Committee, Claims Settlement Committee, and Investment Committee. Only HR Committee met thrice, while all other committees met twice during the year.


Transparency

The external auditors of the Company, M/S Yousuf Adil, has issued an unqualified audit report on the financial statements for CY24. The firm is QCR rated and on SBP's panel in category "A".


Management
Organizational Structure

The Company operates through Underwriting, Reinsurance, Claims, Health, Finance, Management Information System, HR, Administration, Legal, Internal Audit, Tracker, Marketing, Compliance & Grievance, and Strategic Business Planning & Relationship. All functional Heads report directly to the CEO, who then reports to the Board, However, the Head of Internal Audit reports functionally to the Board Audit Committee (BAC) and operationally to the CEO.


Management Team

Mr. Abdul Waheed serves as the CEO and has been associated with the Company since 2010. He holds an overall experience of more than three decades. Mr. Suleman Khalid serves as the CFO and has been associated with the Company since 2021. He holds an overall professional experience of around two dacades. He is assisted by a team of professionals.


Effectiveness

The operations of the Company are managed by each function head reporting to the CEO, who then makes pertinent decisions. However, room for improvement exists as the presence of management committees will help to monitor the effective management of overall operations.


MIS

The Company has developed and deployed a real-time web-based Insurance Management System (IMS) that provides the management with customized management tools in a structured MIS system. This helps the Company to bring operational efficiency.


Claim Management System

Claims amounting to less than ~PKR 20,000 are approved by the Branch Managers. However, in the motor segment claims above ~PKR 125,000, and in other segments claims above ~PKR 0.2mln are approved by the CEO, and above ~PKR 1mln are approved by the Claim Committee.


Investment Management Function

The BoD's investment committee oversees the investment function, with support being taken from the CFO and Head of Treasury. Moreover, a formal investment policy statement (IPS), approved by BoD, providing guidelines and execution structure, exists to support the investment committee.


Risk Management framework

The Company's risk management policies are established to identify and analyze the risks faced by the Company to set appropriate risk limits and controls and also to monitor risks and adherence to limits. The system and policies are reviewed regularly to reflect changes in market conditions and the Company's activities.


Business Risk
Industry Dynamics

Pakistan’s general insurance industry reported a total GPW of approximately PKR 170bln as of Sep’25 (Sep’24: PKR 171.bln), a slight decrease of ~0.5% in Gross Premium Written (GPW).The industry’s underwriting performance declined markedly, with underwriting results decreasing by 50% YoY to PKR 4.8bln in 9MCY25 (9MCY24: PKR 9.6bln). Additionally, investment income declined by around 16.4% YoY to PKR 22.9bln (9MCY24: PKR 27.4bln), primarily attributable to monetary easing. From a business risk perspective, concentration risk has shown marginal improvement due to a significant expansion in the fire & property segment. However, underwriting performance remains pressured, primarily due to elevated claim ratios in the health segment, coupled with an increase in reinsurance costs.


Relative Position

The Company operates as a medium-tier player and holds a market share of ~3.55% in terms of GPW as of CY 25.


Revenue

The Company reported a GPW of ~PKR 5.1bln during 9MCY25 (9MCY24: ~PKR 5.0bln) reflecting a marginal growth on account of a value-driven increase in premiums. Segment-wise, Accident and Health remained the top-performing segment, contributing 39% of the total GPW, followed by Motor at 22%, Fire and Property Damage at 19%, Miscellaneous at 14%, while Marine constituted the remaining 6% of the GPW.


Profitability

During 9MCY25, the Company reported an underwriting profit of ~PKR 30mln (9MCY24: ~PKR 208mln) reflecting a significant decline primarily due to higher claims and cost pressures. However, the Company recorded a net profit of ~PKR 405mln (9MCY24: ~PKR 523mln), largely supported by a 16.6% YoY increase in investment income.


Investment Performance

During 9MCY25, the Company reported investment income of ~PKR 630mln (9MCY24: ~PKR 540mln), reflecting a YoY increase primarily on account of higher returns on the investment portfolio amid a diminishing interest rate environment.


Sustainability

Going forward, the Company plans to expand its operations, adding value through enhanced process automation. Additionally, the focus on improving operational efficiency and prudent risk management is expected to support sustainable growth while preserving profitability over the medium term.


Financial Risk
Claim Efficiency

As of 9MCY25, the Company’s claims outstanding days improved to 131 days (9MCY24: 173 days), reflecting a notable enhancement in claims settlement efficiency. For reference, claims outstanding days stood at 130 days as of 6MCY25 (6MCY24: 174 days), indicating that the improvement in efficiency has been sustained during the period.


Re-Insurance

The Company has reinsurance agreements with; SCOR Re (rated A), Echo Re (rated A-), Kuwait Re (rated A-), Hannover Re (rated A+), PRCL (rated AA), Luaban Re (rated A-) and Askari (rated A-)


Cashflows & Coverages

During 9MCY25, the Company’s liquid investments to net insurance premium cover deteriorated to ~1.0x (9MCY24: ~1.2x). For reference, indicating a gradual weakening in coverage over the period. The liquid assets to outstanding claims cover also declined to ~2.1x during 9MCY25 (9MCY24: ~3.5x), reflecting reduced liquidity buffers against outstanding claims, albeit remaining at manageable levels.


Capital Adequacy

The shareholders’ equity as of 9MCY25 stood at ~PKR 3.3bln (9MCY24: ~PKR 3.0bln), reflecting an uptick primarily on account of an increase in unappropriated profits. Meanwhile, the paid-up capital of the Company has complied with the regulated phased enhancement for FY26 through a rights issue.
 
 

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Askari General Insurance Company Limited


Financial Summary

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(PKR mln)


 Sep-25
9M		 Dec-24
12M		 Dec-23
12M		 Dec-22
12M
1. Investments 5,106 5,202 4,769 4,011
2. Insurance Related Assets 4,335 3,327 3,373 2,710
3. Other Assets 1,056 850 654 533
4. Fixed Assets 524 366 332 406
5. Window Takaful Operations 0 0 0 0
Total Assets 11,021 9,745 9,128 7,660
1. Underwriting Provisions 3,706 2,721 2,466 2,157
2. Insurance Related Liabilities 2,681 2,634 3,037 2,216
3. Other Liabilities 882 885 611 532
4. Borrowings 415 155 158 200
5. Window Takaful Operations 0 0 0 0
Total Liabilities 7,684 6,395 6,272 5,105
Equity/Fund 3,337 3,350 2,856 2,554
B. INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENT
1. Gross Premium Written/Gross Contribution Written 6,037 6,512 5,550 4,500
2. Net Insurance Premium/Net Takaful Contribution 3,358 3,943 3,175 2,676
3. Underwriting Expenses (3,328) (3,658) (2,977) (2,444)
Underwriting Results 30 285 198 232
4. Investment Income 630 770 547 328
5. Other Income / (Expense) 52 71 42 22
Profit Before Tax 712 1,126 788 582
6. Taxes (308) (404) (340) (193)
Profit After Tax 405 721 448 388
PARTICIPANTS' TAKAFUL FUND - PTF
1. Gross Contribution Written 899 1,082 642 458
2. Net Takaful Contribution 317 236 102 78
3. Net Takaful Claims (514) (280) (179) (98)
4. Direct Expenses Including Re-Takaful Rebate Earned 59 63 56 39
Surplus Before Investment & Other Income/(Expense) (137) 19 (21) 19
5. Investment Income 28 44 40 24
6. Other Income/(Expense) 6 3 (3) (2)
Surplus for the Period (103) 66 15 42
OPERATOR'S TAKAFUL FUND - OTF
1. Wakala Fee Income 296 304 222 170
2. Management, Commission & Other Acquisition Costs (255) (236) (176) (144)
Underwriting Income/(Loss) 40 68 46 26
3. Investment Income 56 59 52 30
4. Other Income/(Expense) 3 8 7 6
Profit Before tax 100 136 105 61
5. Taxes (44) (54) (41) (19)
Profit After tax 56 82 64 42
C. RATIO ANALYSIS
1. Profitability
Loss Ratio - Net Insurance & Takaful Claims / Net Insurance Premium or Takaful Contribution 73.6% 66.3% 62.1% 61.5%
Combined Ratio (Loss Ratio + Expense Ratio) 99.1% 92.8% 93.8% 91.3%
2. Investment Performance
Investment Yield 16.3% 15.5% 12.5% 8.7%
3. Liquidity
(Liquid Assets - Borrowings) / Outstanding Claims Including IBNR 2.1 3.2 2.7 4.1
4. Capital Adequacy
Liquid Investments / Equity (Funds) 124.5% 144.0% 161.8% 153.6%

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Askari General Insurance Company Limited


Rating Scale

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Feb-26

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Askari General Insurance Company Limited


regulatory disclosure

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  1. Rating Team Statements
    1. Rating is just an opinion about the creditworthiness of the entity and does not constitute a recommendation to buy, hold, or sell any security of the entity rated or to buy, hold, or sell the security rated, as the case may be. (Chapter III; 14-3-(x))
    2. Conflict of Interest
      1. The Rating Team or any of their family members have no interest in this rating (Chapter III; 12-2-(j))
      2. PACRA, the analysts involved in the rating process, and members of its rating committee and their family members do not have any conflict of interest relating to the rating done by them (Chapter III; 12-2-(e) & (k))
      3. The analyst is not a substantial shareholder of the customer being rated by PACRA [Annexure F; d-(ii)]
      4. Explanation: for the purpose of the above clause, the term "family members" shall include only those family members who are dependent on the analyst and members of the rating committee.
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    3. PACRA does not make proposals or recommendations regarding the activities of rated entities that could impact a credit rating of the entity subject to rating. (Chapter III; 10-7-(k))
  3. Conduct of Business
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