PACRA Maintains IFS Rating of Alfalah Insurance Company Limited
The rating recognizes AFIC's maintained financial profile, emanating from i) well managed insurance assets/liabilities structure, and ii) growing investment book that contributes a sizable income stream & provide cushion to the bottom line. Rating also draws comfort from sponsorship of the company. Growth in business volumes of the company is important. The management’s conservative stance, in the form of low risk retention, continues yielding profitability. Positive momentum in volumes is expected to continue on the back of group support. Health and accident segment intends to fortify its position in the general insurance industry by expanding its health network. The company is expanding penetration in motor segment; building synergies with group bank – Bank Alfalah. Supporting its prudent risk retention policies, Alfalah Insurance has a sound panel of reinsurers with favourable treaty terms.
The rating is dependent on the company's ability to augment its market position in the competitive landscape, while upholding the underwriting performance. Strengthening of liquid profile is vital along with prudent management of claims and receivables.
Alfalah Insurance Company Limited, commencing business in Sep'06, is engaged in providing nonlife insurance services. Alfalah Insurance, with its head office in Lahore, operates through two business Hubs North and South with a total of 12 branches. Abu Dhabi Group (ADG), consisting of members of UAE's ruling family and leading businesses, owns Alfalah insurance through key sponsoring individuals and group companies including Bank Alfalah Limited. Bank Alfalah is the sixth largest bank having assets at end-Dec’16 of PKR 917bln.
The company’s seven member board, including CEO, is chaired by HH Sheikh Nahayan Mabarak Al Nahayan. Three board members come from the sponsoring group; two members represent Bank Alfalah Limited, while one member holds executive position in ADG. The CEO, Mr. Nasar-us-Samad Qureshi, assisted by a team of professionals, possesses around three decades of related experience.