PACRA Maintains IFS rating of Askari General Insurance Company Limited

Askari General Insurance Company Limited ("Askari General" or "the Company”) holds a stable risk profile backed by a substantially strong sponsoring group, Army Welfare Trust ("the Group"). The Company writes non-life insurance business under Conventional Insurance (~87%) and Window Takaful Operations (~13%). Segment-wise, both conventional and window takaful operations (WTO) remain tilted towards accident and health (~39%) of the total GPW. This is followed by motor (~22%), fire & property (~19%), miscellaneous (~14%), and marine & transport (~6%). The Company’s GPW gathered volumetric support (~15.5% growth), while the inflationary impact majorly remained subdued (9MCY25: ~PKR 6,037mln, 9MCY24: ~PKR 5,223mln). This growth was fueled by increased business volumes in key segments, strengthened by robust corporate client relationships and a continued emphasis on high-quality underwriting. The Company reported an underwriting profit of ~PKR 127mln in 9MCY25, which went down from ~PKR 147mln in 9MCY24 primarily due to higher claim ratios in certain business lines. The reduction in underwriting results is largely attributable to monetary easing, resulting in diminished discount rates and the impact of natural disasters.
Additionally, the Company maintains a stable equity base amounting to PKR 3,337mln as of Sep’25 (Sep’24: PKR 3,019mln). During the year, the Company underwent Right Issue, bringing the total paid-up capital to the required compliance threshold for the year 2026. Askari General also benefits from a strong panel of reinsurers under favorable treaty terms. Looking ahead, management plans to strengthen the Company’s topline and bottom line by leveraging alternative distribution channels and diversification of its product portfolio. The Company plans to venture into E-Insurance and insurance of digital assets as part of its future product diversification strategy. In line with the Government of Pakistan’s ongoing Sharia-compliance directive for financial institutions, Askari General is focused on progressively increasing the share of Window Takaful Operations (WTO) in its underwriting portfolio. The rating also reflects significant backing from the sponsoring Group and hinges on the Company’s ability to sustain market share and profitability in its core business, maintain stable investment income, and achieve proportional improvements in liquidity.
Pakistan's general insurance industry holds a total size of ~PKR 170bln during 9MCY25 (9MCY24: ~PKR 171bln), exhibiting a slight decrease of ~0.5% in Gross Premium Written (GPW). The industry reported a decrease of ~50.4% in underwriting results amounting to ~PKR 4.7bln (9MCY24: ~PKR 9.6bln). Overall, the investment income experienced a decrease of ~13.9% to ~PKR 22bln (9MCY24: ~PKR 26bln). The current economic conditions remain imperative for the overall performance of the insurance industry.
The rating is dependent on the Company's ability to sustain its market share and profitability from the core business along with stable investment income. At the same time, a proportional improvement must be recorded in its liquidity profile.

About the Entity
Askari General Insurance Company Limited ('Askari General' or 'the Company') was incorporated in Apr-95. Later, in 1996 the Company was listed on the Pakistan Stock Exchange (PSX). The principal activity includes managing non-life insurance through Conventional and Window Takaful operations in Fire and Property, Marine, Accident & Health, Motor, and Miscellaneous segments.
A major stake is held by Sponsoring group directly through Army Welfare Trust (~59.3%) and indirectly through Directors (~0.74%). Financial Institutions and Mutual Funds hold (~1.09%). The remaining stake ~38.9% is held by the general public.
The overall control of the Company lies with a nine-member Board chaired by Lt. Gen Nauman Mahmood (Retd.), while Mr. Abdul Waheed serves as the CEO. He is assisted by a team of professionals.