Analyst
Maryam Arshad
maryam.arshad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Harmonizes IFS Rating of Shaheen Insurance Company Limited
Rating Type | IFS | |
Current (31-Mar-22 ) |
Previous (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.