PACRA Maintains IFS Rating of Shaheen Insurance Company Limited

Shaheen Insurance is a non-life insurance company offering conventional and takaful insurance, where conventional business constitutes the majority (~92%) of the Company’s operations. During CY23, the GPW of the Company posed a growth of ~73% emanating majorly from the fire & property segment (~37%) followed by marine & aviation (~31%). Moreover, the overall portfolio stood affirmed with value-driven growth as an impact of inflation along with new business written under the Marine, aviation & transport segment. The underwriting performance has translated into positive results. However, due to the elevated expense ratio, the Company's combined ratio remains high (~92%). The rating also takes comfort from the Company's risk-free investment portfolio which generates considerable investment income contributing to the overall bottom line. On the financial risk front, Shaheen Insurance demonstrates strong risk absorption capacity and a solid liquidity profile, complemented by a well-established reinsurance panel, all of which contribute positively to its ratings.
During 3MCY24, GPW of the General Insurance industry held a total size of PKR 48bln (3MCY23: PKR 41bln), posting growth of ~17%. Underwriting performance also improved by ~103% (3MCY24: PKR 3bln, 3MCY23: PKR 1.5bln). Improved underwriting and investment performance contributed to the industry's earnings (3MCY24: PKR 6.3bln, 3MCY23: PKR 4bln). However, current economic conditions remain imperative for the overall performance of the insurance industry.
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') a group Company of Shaheen Foundation was incorporated in 1995 as a public listed company. The Company operates as a non-life insurance provider, offering both conventional and takaful insurance through a network of 13 branches operating nationwide. Shaheen Foundation a conglomerate with interests real state aviation, textile, trade, insurance, health and education sectors holds majority of the stake (~69.3%), followed by Foreign & Joint Stock Companies (~17.9%), Central Non Public Fund PAF (~4.2%) and General Public (~8.6%). The Company's Board is chaired by AVM Junaid Ahmed Siddiqui(Retd.). While, Mr. Syed Rizwan Akhtar serves as the Company' CEO. He is assisted by a team experienced professionals.