Press Release
VIS Reaffirms IFS Rating of Alpha Insurance Company Limited
Karachi, September 2, 2026: 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 policy holders and contract 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 May 14, 2025.
Alpha Insurance Company Limited (‘AICL’ or the ‘Company’) was incorporated in 1951. State Life Insurance Corporation (SLIC) is the parent company, possessing 95% stake. AICL is primarily engaged in providing general insurance and window takaful operations in six primary segments namely fire & property damage, marine, aviation & transport, motor, accident & health (A&H), bond (excluding for takaful) and miscellaneous segments. The Company operates via eleven branches spread across Pakistan, covering all major cities.
The Insurer Financial Strength rating of Alpha Insurance Company Limited (‘AICL’ or the ‘Company’) reflects the strong implicit support from its parent entity, State Life Insurance Corporation (SLIC). The rating incorporates the Company's adequate capitalization and satisfactory liquidity profile, supported by a conservative investment portfolio comprised primarily of debt securities.
While investment performance has helped mitigate the impact of underwriting losses, the rating remains constrained by sustained underwriting pressures. The Company continues to experience underwriting deficits driven by a still low business base, elevated claim incidences, particularly within the health and property segments, alongside high and rising management expenses linked to inflationary pressures. To mitigate these challenges, management has initiated strategic realignments, including the curtailment of loss-making portfolios and leveraging synergies with its parent entity to stimulate profitable volume expansion across core segments. Reinsurance treaty terms and capacities have also been revised to accommodate the evolving risks in business underwritten.
Going forward, the rating remains sensitive to the Company's ability to improve underwriting profitability, through optimization of underwriting expenses vis-a-vis business generated, enhancing capital to meet minimum SECP requirements on a timely basis, maintaining liquidity and minimizing accumulation of insurance debt in longer-aged buckets, while executing strategic growth initiatives. Investment performance is likely to be muted in the current year on account of market conditions which will put pressure on profitability. The ongoing business portfolio restructuring may yield positive results by 2027.
For further information on this rating announcement, please contact 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://vis.com.pk/docs/VISRatingScales.pdf