Press Release
VIS Reaffirms IFS Rating of Chubb Insurance Pakistan Limited
Karachi, December 26, 2024: VIS Credit Rating Company Limited (VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of Chubb Insurance Pakistan Limited (CIPL) at ‘AA+’ (Double A Plus). The rating signifies 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 04, 2023.
Chubb Insurance Pakistan Limited (‘CIPL’ or the ‘Company’) operates as a wholly owned subsidiary of Chubb INA International Holdings Limited (U.S.A). The Company follows a very selective underwriting strategy. CIPL’s primary competitive advantage is the sizable treaty capacities arranged with associate Group company; as the counterparty, in this case is highly rated on the international scale, it allows CIPL to underwrite complex and specialized risks. The assigned rating derives strength from the sponsor profile of Chubb Group, representing a world leader in insurance. . With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. The rating also reflects the technical and financial assistance received by CIPL from the parent company.
The rating reflects a positive trajectory in business volumes and improvement in underwriting results on a timeline basis. A significant decline in the combined ratio has been observed, accompanied by growing investment income. The Company's liquidity profile is considered sound, supported by substantial coverage of net technical reserves and a comfortable aging profile. Additionally, the Company has maintained adequate solvency margins to meet regulatory requirements. With ongoing improvements in economic activity—driven by reductions in interest rates, stabilization of the rupee exchange rate, and lower inflation levels—the management's key focus areas will include fire and liability insurance, with a balanced mix of cyber and property insurance. These areas are critical for managing underwriting risk. Looking ahead, achieving growth in market share, maintaining underwriting quality and profitability indicators, and rationalizing claims ratios will remain important drivers of the rating.
For further information on this ratings announcement, please contact analyst at 042-35723411-13 or the on 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