Press Release
VIS Reaffirms IFS Rating of Askari General Insurance Company
Karachi, October 07, 2026: 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 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’. Previous rating action was announced on December 24, 2025.
Askari General Insurance Company Limited was incorporated as a public limited company on April 12, 1995, under the Companies Ordinance, 1984 (repealed by the Companies Act, 2017), and commenced commercial operations on October 15, 1995. The Company operates in the non-life insurance segment, offering fire, marine, motor, health, and miscellaneous insurance products. It is listed on the Pakistan Stock Exchange Limited (PSX), with its registered office located at AWT Plaza, Rawalpindi, and a network of 20 plus branches across Pakistan. The Company is a subsidiary of Fauji Foundation after the recent transfer of majority holding from Army Welfare Trust.
Fauji Foundation is the largest social welfare network outside the Government, and one of the largest business conglomerates (widely known as “Fauji Group”) operating in Agriculture & Food (Fertilizer, Corporate Farming & FMCG), Cement, Power Generation (both thermal & renewable), Oil & Gas Exploration, Minerals & Mining, IT & Digital Infrastructure, Marine Terminals, Employment Services, and Banking / Financial Brokerage & Currency Exchange sectors of the country. Fauji Group’s extensive business footprint may be expected to yield enhanced underwriting opportunities for AGIC.
The Company’s rating reflects its strong overall credit profile, supported by a well-established franchise, experienced management, sound governance framework, and sponsor support expectations. The Company continues to grow its gross written premiums and expanding Window Takaful operations. Its capitalization has strengthened following the successful right issue and continued internal capital generation, providing support against growing business volumes and regulatory capital requirements. Liquidity remains sound, underpinned by a sizeable base of cash, bank balances, and investments, while the aging profile of insurance receivables provides additional comfort. The Company also benefits from established reinsurance arrangements and a panel of adequately rated reinsurers, although higher retention in key business segments increases risk of claims volatility. Underwriting performance weakened during the review period due to elevated claims, particularly in Accident & Health and Fire & Property, resulting in pressure on underwriting margins. However, the trend showed improvement during the ongoing year, supported by moderation in claims and improved underwriting profitability. Profitability also remained supported by investment income and takaful operations. Key rating considerations include the concentration in Accident & Health, elevated claims experience, rising insurance receivables, increasing leverage alongside business growth, and exposure to evolving catastrophe, geopolitical, and reinsurance risks.
For further information on this rating 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