Press Release
VIS Reaffirms IFS Rating of UBL Insurers Limited
Karachi, March 30, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of UBL Insurers Limited (‘UIL’ or the ‘Company’) at ‘AA+’ (Double A Plus). The rating signifies a 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 January 21, 2025.
UIL’s rating reflects its strong sponsorship profile; it is jointly owned by United Bank Limited (UBL) and the bank’s sponsor, the Bestway Group. UBL is the third largest private commercial bank in Pakistan with a AAA/A1+ rating by VIS. The company is licensed to provide both conventional and takaful coverage through Window Takaful Operations. Reinsurance arrangements remain adequate, with a diversified panel of internationally rated reinsurers providing protection against large loss exposures.
During the review period, the Company experienced changes at the senior management level. While key positions have since been filled, the transition phase is noted from a governance perspective; maintaining management stability is important to ensure continuity in strategic execution and operational oversight.
During the review period, UIL experienced pressure on underwriting performance, due to elevated claims across all business segments. While reinsurance arrangements mitigated the impact on net account in some segments, health, which is retained on net account since 2025, incurred significant losses. In recent periods, the proportion of motor and health has increased considerably. In Health business, UIL has amended the underwriting terms of major coverage and management is confident that the same would address loss experience; business solicitation strategy for motor is also being modified. VIS will closely track the impact of these changes in the coming period.
Losses from underwriting operations were offset by recurring investment income. The investment portfolio remains conservatively allocated, predominantly deployed in government securities, limiting credit risk exposure and likely to provide continued support to bottom line.
Liquidity indicators remain adequate, supported by a largely liquid investment base, though insurance receivables have increased in line with business growth. Capitalization metrics remain within acceptable thresholds.
The rating incorporates the Company’s capacity to absorb earnings volatility, supported by its capital base, reinsurance protection, and sponsor backing, while remaining sensitive to sustained underwriting discipline and claims management.
For further information on this ratings announcement, please contact 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