Press Release

VIS Reaffirms IFS Rating of Pakistan Reinsurance Company Limited

Lahore, March 19, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of Pakistan Reinsurance Company Limited (PRCL or ‘the Company’) at ‘AA+ (IFS)’ (Double A Plus IFS). The IFS rating of ‘AA+’ denotes 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 rating is ‘Stable’. The previous rating action was announced on February 27, 2024.

The rating assigned to Pakistan Reinsurance Company Limited (PRCL or ‘the Company’) is underpinned by its strategic importance, being the government owned (75% stake) and the sole local reinsurance company in Pakistan. The rating incorporates improvement in underwriting results on a timeline basis with a well-maintained loss ratio recorded along with sustainable and growing investment income. Moreover, significant increase in investment income, largely emanating from higher returns on government securities, supported the bottom line. In terms of composition of the investment mix, given the sizable investments in government securities coupled with the remaining majority constituting of stable and high rated equity securities, the credit risk emanating from the same is manageable.

PRCL is considered sound from a solvency risk point of view as the Company has adequate cushion in terms of admissible assets over its liabilities. The rating further incorporates reinsurance arrangements largely with counterparties having sound credit risk profiles with appropriate risk retention on net account to maintain risk appetite of the Company. Rating further derives strength from the ESG initiatives undertaken to improve the gender diversity and digitization initiatives to add to the operational efficiency. Rating remains constrained on account of a qualified opinion and matter of emphasis on the financial statements of CY23 that pertain to sizable receivables and the management is currently in process of reconciling these balances.

For further information on this rating announcement, please contact the undersigned at 042-35723411-12 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

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright March 19, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.