PACRA Harmonizes IFS Rating of Premier Insurance Limited

Insurer Financial Strength (IFS) rating is an independent opinion on the relative “capacity of an insurance company to meet policyholder and contract obligations”. To facilitate insurance companies and users of IFS ratings, PACRA has modified the IFS rating scale. The primary objective behind this modification was to: a) Create distinction in symbols and definitions of IFS Ratings and Credit Ratings; previously same symbols were being used for both type of ratings. Now IFS symbols are exclusive for IFS ratings b) Eliminate ambiguities in terms of “Rating Category” and “Notch”; this has now been achieved in the modified scale, which will be helpful in understanding the meaning and connotation of each rating category and notch, c) Update certain definitions for more clarity.
This is expected to eliminate any overlap or ambiguity regarding rating categories and notches; thus, facilitating all stakeholders. The modified scale is applicable for all outstanding IFS ratings including “Premier Insurance Limited”.

About the Entity
Premier Insurance was incorporated in 1952 and is listed on the Pakistan Stock Exchange. It holds <1% market share and operates through two business Hubs; South and North. Crescent Group and its associated companies hold 70% shareholding. State Life Insurance Corporation is another major shareholder with 11%. The Crescent Group (CG) operates in diversified sectors of textile, steel, sugar, and power.
Premier Insurance has seven-member Board, including CEO, comprising five representatives of Crescent Group and one of State Life Insurance Corporation. Mr. Nadeem Maqbool is the new CEO of the Company, taking charge since Feb’20 after the passing of former CEO. Mr. Maqbool has been associated with Premier Insurance for more than 17 years and is also the CEO of Suraj Cotton, part of Crescent Group.