PACRA Maintains IFS Rating of The Universal Insurance Company Limited

The rating of Universal reflects strong parentage of the company – Bibojee group. The parentage has provided multi-faceted support to the company: a) injection of capital from different times of the crisis, b) sustenance in the cleansing period spanning over a couple of years, c) captive business. Underwriting resulted in loss while the bottomline was cushioned from profits of associates. The business strategy envisages tapping captive business with gradual entry into the market business. The road ahead is long, as the company is envisaging new market strategy while enlisting with the banks.
The rating is dependent upon sustained improvement in relative position of the company, augmenting its sustainability, as envisaged by the board and the management. Meanwhile, continued improvement in the financial profile of the company, is also imperative for the rating

About the Entity
Universal Insurance Company Limited, incorporated in 1958, is listed on Pakistan Stock Exchange (PSX). Majority ownership of the company is held by Bibojee Group (87%), through holding company “Bibojee Services Private Limited” (BSL). Bibojee group is a well established in having its presence in various industrial sectors including Textile, Auto, Tyres & Rubber and Engineering.

Nine members BoD constitutes seven members from sponsoring family- including the CEO. One member is an employee of the group along with an independent director. The CEO, Mr. Gohar Ayub Khan, replaced in succession to Begum Zeb Gohar Khan (Late), was appointed in January 2016. Managing Director – Mr. Amir Raza, is an experienced insurance professional long associated with the company