Press Release
VIS Reaffirms IFS Rating of Century Insurance Company Limited
Karachi, January 9th, 2026: VIS Credit Rating Company Limited (VIS) reaffirms IFS ratings at ‘AA(IFS)’ (Double A IFS) for Century Insurance Company Limited (‘CICL’ or the ‘Company’). Long-term IFS rating of ‘AA(IFS)’ reflects very strong capacity to meet policy holders and contract obligations. Risk factors are very low, and the impact of any adverse business and economic factors is expected to be very small. Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on December 31, 2024.
CICL is licensed to undertake both general insurance and Window Takaful Operations. It is part of the Lakson Group, a diversified industrial conglomerate with long operational history in Pakistan. The rating assigned to CICL reflects its established franchise within Pakistan’s general insurance sector and its association with the Lakson Group. The rating is further supported by CICL’s diversified business mix across major non-life segments, stable retention in core lines, and effective reinsurance arrangements with well-rated counterparties, which collectively support earnings stability.
The combined ratio of CICL has remained below the industry average, supported by controlled expense levels and prudent underwriting practices. Reinsurance utilization remains aligned with segmental risk characteristics, with higher cessions maintained in severity- and catastrophe-exposed lines, while short-tail and retail-heavy segments are largely retained.
Profitability continues to benefit from a stable stream of investment income. The investment portfolio is conservatively positioned, with a significant allocation to government securities and liquid instruments, limiting credit risk. While overall portfolio returns moderated in 9MCY25 amid a declining interest rate environment, earnings generation remains adequate.
Liquidity indicators remain strong, with liquid assets providing sizeable coverage of net technical reserves and a satisfactory premium receivable aging profile. Capitalization is supported by consistent internal capital generation, providing adequate buffer against underwriting and investment risks.
Governance and management practices are assessed as adequate, supported by a balanced board structure and stable senior management. Ongoing digital initiatives and continued regulatory compliance efforts are expected to support operational efficiency and service delivery over the medium term. The rating outlook remains stable, reflecting expectations of sustained business volumes, disciplined risk management, and maintenance of capitalization and liquidity metrics in line with the current rating level.
For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: General Insurance
https://docs.vis.com.pk/docs/GeneralInsurance-2023.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf