PACRA Maintains IFS Rating of Habib Insurance Company Limited

The rating incorporates the Company's association with astute sponsors Habib Family. This provides a sound basis for governance while providing stability through group business. The rating acknowledges HIC's corporate strategy to increase its position on the market by prudent underwriting practices while focusing on bottom-line growth. The company's GPW has been jacked up, reflecting market penetration. Product innovation and elongated market outreach, capitalizing on the Habib group, bodes well for HIC’s business profile. The stability of the business has tended to generate productivity, in the form of low threat retention. HIC maintains a reasonable, fundamentally strong, multi-faceted investment portfolio that supports not only risk absorption but also profitability.
The rating relies upon improving the relative position of the product on the sector. In addition, the future perspectives of the company will require further improvements in business size and underwriting profitability. As the company grows, the liquid profile must be enhanced.

About the Entity
Habib Insurance Company, part of Habib Group, was incorporated as a Public Limited Company in 1942. It is listed on Pakistan Stock Exchange, with a nationwide network of 17 branches. HIC is 68% owned by Habib Group, which is one of the renowned and well-established groups, having exposure in industrial and financial sectors.

The overall control of the company vests in the Board of Directors, comprising seven members. It includes five non-executive directors, one executive and independent director respectively. Mr. Shabbir Gulamali, CEO of the company, possesses over two decades of experience in insurance industry, all of which is with HIC.