Press Release
VIS Upgrades IFS Rating of Reliance Insurance Company Limited
Karachi, December 23, 2025: VIS Credit Rating Company Limited (VIS) has upgraded the Insurer Financial Strength (IFS) rating of Reliance Insurance Company Limited (RICL) to ‘A++ (IFS)’ (Single A Plus Plus IFS) from ‘A+(IFS)’ (Single A Plus IFS) with ‘Stable’ outlook. The rating denotes strong capacity to meet policy holders and contract obligations. Risk factors are low, and the impact of any adverse business and economic factors is expected to be small. The previous rating action was announced on January 31, 2025.
The rating assigned to Reliance Insurance Company Limited (RICL or “the Company”) reflects the strength of its sponsoring groups the Al-Noor Group and the Amin Bawany Group whose diversified industrial presence reinforces financial stability and governance framework instituted in the Company. The rating also draws strength from the experience and continuity of the management team. During the ongoing year, the Company recorded growth in gross written premium, reflecting initiatives to expand business volumes in a competitive operating environment. Underwriting performance strengthened as net claim ratios improved despite an increase underwriting expenses, resulting in higher underwriting profits for 9MCY’25. Bottom-line performance was further supported by higher investment income driven by favorable market conditions.
The Company’s risk profile continues to benefit from sound reinsurance arrangements with a panel of reputed international reinsurers. However, the rating remains sensitive to RICL’s high allocation to equities, which exposes earnings and capital to market volatility. Liquidity indicators remain strong, supported by healthy coverage of technical reserves through liquid assets. Capitalization also improved following the recent bonus issuance, positioning the Company more comfortably against regulatory capital requirements.
Going forward, the rating will remain dependent on the Company’s ability to sustain growth in market share and strengthen profitability through operational efficiencies, prudent underwriting practices, and disciplined investment management.
For further information on this ratings announcement, please contact at 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