Press Release
VIS Upgrades IFS Rating of The Co-operative Insurance Society of Pakistan Limited
Karachi, August 6, 2026; VIS Credit Rating Company Limited (VIS) has upgraded the Insurer Financial Strength (IFS) rating of The Co-operative Insurance Society of Pakistan Limited (‘CISPL’ or ‘the Society’) from ‘BB+ (IFS)’ (Double B Plus IFS) to ‘BBB+(IFS)’ (Triple B Plus IFS) with ‘Stable’ outlook. The rating denotes good capacity to meet policyholder and contract obligations. Risk factors are moderate, and the impact of any adverse business and economic factors is expected to be manageable. The previous rating action was announced on March 5, 2025.
The Cooperative Insurance society of Pakistan Limited ("CISPL" or "Society") was incorporated under the Cooperative Societies Act, 1925 on August 6, 1949 and registered under Insurance Ordinance, 2000 on January 01, 2001. It is primarily engaged in general insurance business including fire, motor and livestock insurance.
The rating assigned to CISPL is underpinned primarily by its ownership structure, with Punjab Provincial Cooperative Bank Limited (PPCBL) serving as the majority shareholder and the Government of Punjab being the ultimate owner and sponsor. Given the existing gaps in key management positions and the volatility observed in the Society's operating and performance indicators, the assigned rating derives significant support from the strong ownership profile and expected sponsor backing. In this regard, the rating of PPCBL's at 'AA-/A1' by VIS Credit Rating Company Limited has a positive bearing on the ratings.
CISPL's standalone credit profile remains constrained by its modest operational scale and persistent underwriting losses. While gross written premium registered notable growth during CY25, underwriting performance remained under pressure due to elevated management expenses and higher claims, although the latter are expected to normalize in the current year toward historically low levels. Going forward, management intends to capitalize on the recently introduced mandatory third-party motor insurance requirement in Sindh, with the motor segment expected to become the primary driver of premium growth. The Society's reinsurance arrangements with Pakistan Reinsurance Company Limited (PRCL), rated 'AA+', provide additional risk mitigation and support to the risk profile.
The ratings further reflect the Society's sound capitalization and liquidity profile. Net admissible assets remain comfortably above the minimum regulatory solvency requirement, while operating and financial leverage indicators continue to remain low, providing significant capacity to support future business expansion. Liquidity remains sound, supported by sizeable liquid assets relative to net technical reserves and negligible insurance debt. Additionally, recurring rental income from investment properties provides a stable supplementary source of earnings. Nevertheless, sustained improvement in operating performance, greater stability in key management positions, and successful execution of the growth strategy will remain important considerations for the Society's standalone credit profile going forward.
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