PACRA Upgrades IFS rating of TPL Insurance Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- May 17, 2021 (PPI-OT)

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

Quote

TPL has been augmenting its market positioning as it holds a substantial share in motor segment in the industry. Advanced technology infrastructure has continued providing an edge to the company. The third largest player in the motor segment, TPL continues to witness increased business volumes in Window takaful. The company is making concerted efforts to diversify its business composition as it captures non-motor segment, enhancing product slate of TPL Insurance Limited. Underwriting profitability has been enhanced, this augers well for the risk profile. Impetus is gained from abundant liquidity in the company enabled in the form of high liquid investments and cash reserves. Reinsurance treaties provide sufficient coverage to the risks.

The rating takes into account the induction of a German based institution, DEG, as an equity partner into the company. DEG, a wholly owned subsidiary of KfW Group based in Cologne, Germany, has acquired a 19.9% equity stake in TPL Insurance by investing PKR 466mln. The investment supports DEG's vision into expanding in the financial sector of nascent, but growing markets like...