Lahore, April 18, 2016 (PPI-OT):The Pakistan Credit Rating Agency (PACRA) has placed the Insurer Financial Strength (IFS) rating of “A-” (Single A minus) of Crescent Star Insurance Limited (CSI) on Rating Watch, owing to two significant ongoing developments, i) acquisition of Pak Kuwait Takaful Company Limited (Pak Kuwait), and ii) planned merger of PICIC Insurance Limited (PICIC) with CSI.
Subsequent to PICIC’s merger with CSI, for which an MOU has been signed, there would be a change in ownership structure of the merged entity and hence, governance framework. Moreover, majority stake (62.5%) in Pak Kuwait shall bring management control to CSI; leading to entrance in takaful market. The new business strategy, after completion of two transactions, may impact business profile of the company and its relative positioning in the Insurance Industry – hence, IFS Rating.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425