The Pakistan Credit Rating Agency Limited
Press Release


Muhammad Noor Ul Haq

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PACRA maintains the IFS rating of Askari General Insurance Company Limited

Rating Type IFS
(14-Feb-23 )
(31-Mar-22 )
Action Maintain Harmonize
IFS Rating AA+ (ifs) AA+ (ifs)
Outlook Stable Stable
Rating Watch - -

Askari General Insurance Company Limited has a solid risk profile. This is reflected in the assigned rating of the Company. Askari General has exhibited sustained business volumes and underwriting performance in recent times through its underwriting strategy, with a focus to augment the bottom-line profitability. During 9MCY22, Company earned GPW of PKR 3,127mln (incl takaful) owing 14.2% growth on YoY basis (9MCY21: PKR 2,738mln). Fire and Property segment reported a growth 30.1% followed by marine & aviation (28.9%), motor (14.2%), miscellaneous (9.2%), and health (4.3%). The management efforts for sustaining the overall quality of the control environment are supported by the real-time operating software. This provides tools for holistic oversight and efficient decision-making. A subsidiary, AskTech, a venture focused on vehicle tracking solutions, has been set up to yield technological synergies; this is expected to create diversification by enhancing customer experience. The Company’s fully functional android and IOS-based mobile app - Ask Health enhanced communication and coordination, facilitated through a 24/7 immaculate call center and brought a reduction in Turn Around Time (TAT) in claims processing; therefore attracting a customer base. The sustained liquidity profile provides a cushion to the risk absorption capacity. Askari Insurance continues to have a sound panel of reinsurers with favorable treaty terms. Going forward, it intends to fortify its position in non-conventional segments, while using alternative distribution channels. The rating, likewise, takes into account Askari General’s association with Army Welfare Trust (AWT).
During CY22, the economy faced multiple challenges i.e. natural disasters (Floods), the political instability trickles down toward a dip in business activities. Reduction in management expenditure and product innovation shall remain crucial for the industry participants in order to solidify their market position.
The rating is dependent upon the Company's ability to sustain its market share and its profitability from the core business and investment income. At the same time, the proportional improvement must be recorded in its liquidity.

About the Entity
Askari General Insurance Company Limited, listed at Pakistan Stock Exchange, commenced commercial operations in 1995. The company operates a nationwide network of 20 branches with a head office in Rawalpindi. The controlling stake is with AWT (59.3%).
Askari Insurance board comprises eight members excluding the Chief Executive Officer (CEO). The board includes retired army officials, senior executives of AWT, and three independent members. Mr. Abdul Waheed, CPA (USA) - a seasoned professional having a deep understanding of the insurance business - is the CEO of AGICO since July 2010. A team of professionals assists him.

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.