Press Release
VIS Maintains IFS Rating of The United Insurance Company of Pakistan Limited
Lahore, September 26, 2025: VIS Credit Rating Company Limited (VIS) has maintained Insurer Financial Strength (IFS) rating of ‘AA+ (IFS)’ (Double A Plus IFS) of The United Insurance Company of Pakistan Limited (UICPL 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 has been changed from ‘Rating Watch – Developing’ to ‘Stable’. Previous rating action was announced on May 27, 2025.
The rating assigned to UICPL reflects the sound business profile of the United International Group (UIG), which has diversified business interests across insurance, IT, dairy, and vehicle tracking. As the flagship entity of the group, UICPL maintains a strong competitive position among leading general insurers in Pakistan and continues to expand its takaful operations, which now contribute a meaningful share to overall gross premiums.
Gross Written Premium (GWP) demonstrated consistent growth across both conventional and takaful segments in CY24, translating into increased market share. The Company’s largest segment is miscellaneous, which, while supporting higher premium revenue, also exposes the Company to greater risk on its own account since reinsurance/cession in this segment is more limited compared to fire, marine, and other conventional businesses. The Company also reported an improvement in underwriting profitability throughout the review period, driven by better claims ratios, disciplined underwriting, and effective cost controls. However, this improvement was partially offset by a decline in recurring investment income, which led to an elevated operating ratio for CY24.
The Company’s liquidity position remains sound, with liquid assets comfortably covering net technical reserves. The investment mix continues to be conservative, with a high allocation to government securities, thereby limiting exposure to market volatility. Reinsurance arrangements remain robust, with most treaties secured with highly rated international reinsurers, and risk retention practices are aligned with the Company’s risk appetite.
During the review period, the SECP issued a directive under Section 60 of the Insurance Ordinance, 2000, instructing UICPL to cease its guarantee business. The order was challenged by UICPL in the Islamabad High Court. Honorable court granted a stay order to UICPL and as per the latest legal proceedings, SECP has withdrawn its earlier press release dated May 21, 2025.
Going forward, the rating remains dependent on prudent management of underwriting risks and preservation of profitability metrics. Considering the ongoing regulatory scrutiny on guarantees issued under the miscellaneous segment, the Company is expected to further strengthen its risk management framework and internal controls to mitigate potential risks.
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