Press Release
VIS Reaffirms IFS Rating of Askari General Insurance Company
Lahore, December 24, 2025: VIS Credit Rating Company Limited (VIS) has maintained Insurer Financial Strength (IFS) rating of ‘AA+ (IFS)’ (Double A Plus IFS) of Askari General Insurance Company (AGIC or ‘the Company’). The IFS rating of ‘AA+’ denotes very strong capacity to meet policyholders 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’. Previous rating action was announced on March 06, 2025.
The rating reflects AGIC’s strong sponsor profile with a diversified business footprint and a long operating history in the insurance sector. Business volumes continued to expand despite competitive pressures, driven by growth across both conventional and takaful windows, with the health and motor segments remaining the principal contributors. The underwriting profile exhibits resilience, aided by stable expense management and continued support from high-quality reinsurers that help moderate exposure to large losses. Although claims activity rose during the year, particularly in health and motor lines, overall risk absorption capacity remains adequate due to a balanced reinsurance structure and sustained operating efficiency. Investment earnings continued to underpin overall profitability, with a sizable allocation to sovereign securities providing stability. Liquidity remains sound, supported by healthy coverage of technical obligations and a diversified liquid asset base, though growth in premium receivables warrants close monitoring.
Capitalization strengthened modestly, aided by retained earnings and the initiation of a right issue, which is expected to further reinforce solvency once fully realized. While leverage indicators have trended upward due to an expanding business base and higher technical reserves, management projects a reversion toward more comfortable levels as the right issue concludes and seasonal claim patterns normalize. Governance practices remain satisfactory, supported by an experienced Board and active oversight through well-structured committees, while ongoing investments in digital infrastructure and cybersecurity continue to enhance operational robustness.
Going forward, the Company’s ability to maintain underwriting discipline and manage rising claims pressures while sustaining capitalization indicators will remain critical.
For further information on this rating announcement, please contact at 042-35723411-13 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