The Pakistan Credit Rating Agency Limited
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Maryam Arshad

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PACRA Harmonizes IFS Rating of Shaheen Insurance Company Limited

Rating Type IFS
(31-Mar-22 )
(26-Aug-21 )
Action Harmonize Maintain
IFS Rating A+ (ifs) A
Outlook Positive Positive
Rating Watch - -

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 “Shaheen Insurance Company Limited”.

About the Entity
Shaheen Insurance commenced commercial operations as a general insurance Company in 1995, and is currently listed on the Pakistan Stock Exchange. With its head office in Karachi, the Company has a nationwide network of 13 branches. It is majority owned by Shaheen Foundation Group and affiliates with (73.4%) shareholding, followed by Hollard Insurance (10.6%).
The overall control of the Company vests in the seven-member BoD (excluding the CEO). Six out of the seven directors represent Shaheen Foundation, with one member being an independent director. Chairman of the Board, Air Marshal Muhammad Arif Pervaiz (Retd.), is MD of Shaheen Foundation. DMD of Shaheen Foundation, Air Vice Marshal Salman Ahsan Bokhari (Retd.), is a non-executive director of the Company. Mr. Rizwan Akhtar has been appinted by the Company on Oct,2021 and possess over two dacades of diversified experience. He is an insurance professional and assisted by a team of competent professionals.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.