The Pakistan Credit Rating Agency Limited
Press Release


Zeeshan Munir

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PACRA assigns positive outlook to Shaheen Insurance Company Limited

Rating Type IFS
(29-Aug-19 )
(27-Feb-19 )
Action Maintain Maintain
IFS Rating A A
Outlook Positive Stable
Rating Watch - -

The rating reflects Shaheen's Insurance strong parentage - Shaheen Foundation - ensuring the financial soundness of the company while augmenting its business operations and control environment through active vigilance. The significant improvement in the liquidity profile emanates from equity injection. Shaheen Insurance has sustained market share keeping pace with the industry's growth. Dominating portfolio ¬ motor ¬ is depicting good underwriting results, enabling the company to nourish other segments; for which the company is enhancing linkage with financial institutions. The company is expanding into other segments, leading to a diversified premium mix. The company carries support from investment income; gradually improving. The recent drive to invest in real estate sector needs to enmesh with the liquidity requirements of the company.
The rating is dependent upon sustained improvement in business profile of the company. Equity was getting reduced due to losses but Shaheen Insurance has been able to convert losses into profit. The growth prospects of the company seem sanguine given the fact the financials of the company are sustained. The rating of the company may be reconsidered provided the company sustains its growth momentum

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 11 branches. It is majority owned by Shaheen Foundation Group and affiliates with its shareholding increasing after the issue of right shares to 73.4% (previous: 64.6%) followed by Hollard Insurance (10.6%).

The overall control of the company vests in the seven¬ member BoD. All directors represent SF, resulting in SF having complete dominance on the board. Chairman of the board, Air Marshal Muhammad Jamshed Khan (Retd.), is MD of Shaheen Foundation.
Mr. Sohail Najam Kidwai, CEO of the company since Jan¬14, possesses over two decades of insurance experience. He is assisted by a team of 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.