PACRA maintains IFS Rating of TRAFCO Insurance Company Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- May 15, 2023 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

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TRAFCO Insurance Company Limited is the emergent player in general insurance space. The rating reflects group support by way of planned synergetic benefits between different ventures of TRAFCO Group. The Company's underwriting portfolio is currently in development stage, which will be growing as envisaged by the management. The Company deals in "Fire and Property Damage", "Marine, Aviation and Transport", "Motor" and "Miscellaneous" segments. The rating factors in TRAFCO's weak solvency, which remains below the regulatory requirement.

The Company's ultimate forte resides with the motor segment ~65.37% followed by fire and property (~18.67%) and miscellaneous (~15.94%). Further, TRAFCO continues to report weak profitability with high underwriting losses, thereby resulting in net losses of PKR 8mln during CY22. The underwriting losses can partially be accredited to a negligible net insurance premium. Presently, TRAFCO does not maintain an investment book. The quantum of...