The Pakistan Credit Rating Agency Limited
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PACRA Assigns Ratings to Shaheen Insurance Company Limited

Rating Type IFS
(25-Aug-23 )
(25-Aug-22 )
Action Maintain Maintain
IFS Rating A+ (ifs) A+ (ifs)
Outlook Stable Positive
Rating Watch - -

The ratings reflect Shaheen Insurance Company Limited's (“Shaheen Insurance” or “the Company”) association with Shaheen Foundation PAF, providing room for captive business. The Company holds a limited market share. The Company has experienced growth in GPW, major volumes are generated from aviation followed by fire and miscellaneous segments. However, the Company booked losses at the underwriting level. This led to high combined ratio for the Company. Overall, the general insurance industry has a total size of ~PKR 41bln during 3MCY23 (3MCY22: ~PKR 34bln), exhibiting a growth of ~21%, in terms of Gross Premium Written (GPW). Similarly, the underwriting performance of the industry improved and reported at ~PKR 1.5bln during 3MCY23 witnessing an increase of ~25% (3MCY22: ~PKR 1.2bln). Improved underwriting and investment performance contributed to the industry's earnings reported at ~PKR 4bln during 3MCY23 (3MCY22: ~PKR 3.4bln). Shaheen Insurance's profitability also gathers support from its investment income, generated mainly from investments in government securities and equity instruments, nonetheless remains adequate. Going forward, the management aims to expand their captive and non-captive business stream, while managing their risk profile so as to keep the reinsurance agreements intact. Currently, the reinsurance panel of the Company is adequate. However, current economic conditions remain imperative for the overall performance. Financial risk of the Company remains stressed due to stretched claims, despite stability in claim efficiency and liquidity aspect. Equity base remain stable.
The rating is dependent upon sustained improvement in business profile of the Company. Growth in revenue streams are crucial. Sustaining equity levels and improvement in liquidity is core to the rating. This along with better investment income and corporate governance framework remains imperative for sustaining the rating.

About the Entity
Shaheen Insurance Company Ltd. ('Shaheen Insuarnce' or' the Company') was incorporated in Jul-95 as a public listed company. The Company’s principal activity is to manage non-life insurance through Conventional and Window Takaful operations in - Fire and Property, Marine and Aviation, Accident and Health and Motor segments. Major stake of the Company lies with Shaheen Foundation PAF (~69.3%). Shaheen Foundation PAF has diversified interest in aviation, textile, trade, real estate, insurance, health and education sectors of the Country. The Company's Board is chaired by Air Marshal Mohd. Airf Pervaiz (Retd.). While, Mr. Syed Rizwan Akhtar serves as the Company' CEO. He is assisted by experienced 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.