The Pakistan Credit Rating Agency Limited
26-Jun-18
Analyst
Ayesha Qasim
ayesha.qasim@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains IFS Rating of TPL Life Insurance Company Limited
| Rating Type | IFS | |
|
Current (26-Jun-18 ) |
Previous (13-Dec-17 ) |
|
| Action | Maintain | Maintain |
| IFS Rating | A- | A- |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The rating incorporates the refined business strategy implemented by the new sponsor. The strategy encompasses innovation in its products and increased penetration in lower income segments.The strength of the new sponsor is evident from fresh injections raising the equity to PKR 700mln. An IPO is also in the pipeline. The management of the company keeps targeting niche segments of businesses. TPL Life is expanding its business volume, wherein which size matters as it provides economies of scale, while further boosting the company's capacity to write new business. The management has high growth targets, though it would take time to reach the zenith.
The rating is dependent on the company’s ability to execute its existing business plan in an efficient manner; herein, growth in top-line and underwriting profits are mandatory. Stagnant liquidity levels are pivotal for rating.
About
the Entity
TPL Life Insurance Limited was incorporated in 2008 and obtained license to carry on life and related line of business in 2009. During CY17, TPL Corp Limited, (formerly TPL Trakker Limited), acquired 100% stake of the company. Later on, two new partners have been injected. TPL Trakker Limited has only recently been renamed to TPL Corp Limited.
The new board of TPL Life consists of eight members, all from the sponsoring group. Mr. Jameel Yusuf Ahmed, the chairman, is a veteran businessman and is also the Chairman of TPL Holdings (Pvt) Limited. The new CEO of the company, Mr. Faisal Abbasi, is a professional having experience of over 19 years in Life Insurance and banking sector. He is assisted by a team of experienced professionals.