PACRA Harmonizes IFS Rating of Adamjee Insurance Company Limited
|IFS Rating||AA++ (ifs)||AA+|
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 “Adamjee Insurance Company Limited”.
Adamjee Insurance Company Limited (AICL) is one of the largest general insurance companies of Pakistan, and only general insurance company having operations outside Pakistan. It was incorporated in 1960 and is listed on Pakistan Stock Exchange. The company operates a network of 91 branches in Pakistan, in addition to the 20 Specialized Agriculture field offices, three in UAE (Dubai, Abu Dhabi & Sharjah), and one branch in Export Processing Zone (EPZ). The operations are divided into 10 divisions; five in south, four in north, and one in UAE.
The overall governance of the Company vests in the eight-member BoD (including the CEO). Board has a majority of the Nishat Group representatives. Before rejoining in June 2013, Mr. Muhammad Ali Zeb had served as the CEO of the company from 2008 until 2011. He has a long association with the Nishat Group. Since 2013, there has been no change in the top management of the Company.