Press Release

VIS Reaffirms IFS Rating of Alpha Insurance Company Limited

Lahore, May 14, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of Alpha Insurance Company Limited (AICL or “the Company”) at ‘A+ (IFS)’ (Single A Plus). The rating signifies a strong capacity to meet policyholders and contractual obligations. Risk factors are low, and the impact of any adverse business and economic factors is expected to be small. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on February 1, 2024.

The rating assigned to AICL is underpinned by the financial strength and sponsor profile of its principal shareholder, State Life Insurance Corporation of Pakistan (SLIC). SLIC, the largest life insurance company in the country, is wholly owned by the Government of Pakistan and carries a AAA rating assigned by a local rating agency. However, the rating remains constrained by persistent underwriting losses and comparatively lower business volumes relative to peers. On the other hand, AICL reported profitability in CY23 and 9MCY24.

The Company’s investment mix is primarily composed of government securities, with the remaining majority held in stable and highly rated equity securities, resulting in manageable credit risk exposure. Reinsurance arrangements are predominantly with counterparties that have sound credit risk profiles, and the Company maintains an appropriate level of risk retention aligned with its risk appetite. From a solvency perspective, AICL is considered sound, with a sufficient buffer of admissible assets over liabilities. While operating and financial leverage has increased in line with the Company’s growing operations, both remain below the peer median. As business volumes are expected to rise significantly, leverage indicators may shift over the rating horizon.

Going forward, the reversal of underwriting losses through improved combined ratio management and sustained profitability will remain key rating drivers.

For further information on this rating announcement, please contact 042-35723411-12 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

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright May 14, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.