Press Release
VIS Assigns Initial IFS Rating to Pakistan General Insurance Company Limited
Lahore, April 21, 2026: VIS Credit Rating Company Limited has assigned an Initial Insurer Financial Strength (IFS) Rating of “A (IFS)” (A IFS) to Pakistan General Insurance Company Limited (PGI or “the Company”). The IFS rating of A denotes 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 assigned rating reflects ongoing operational revival following an extended period of inactivity, supported by a renewed strategic direction articulated under the revised business plan. Reconstitution of the Board and induction of a professional management team have been central to restoring governance discipline, rebuilding underwriting capability, and re-establishing market presence. The business plan sets out a phased expansion of operations, with focus on strengthening core general insurance lines, enhancing distribution channels, and improving internal controls. Additionally, the Board’s approval to initiate Window Takaful Operations reflects the Company’s efforts to capture a market share within this growing segment.
The Company is backed by a sound panel of reinsurers, and all segments are protected by XoL treaties. Equity injection plan has been developed, and the Company plans to be fully compliant with the Minimum Capital Requirement of PKR 2.0bn imposed by SECP by end-2029. As per the business plan, the same will be achieved in five phases with phase 1 and 2 occurring in 2026 and entailing a capital injection of PKR 1,186mn, of which PKR 250mn is injected as cash and PKR 936mn in the form of property valued at the same amount. Based on management data, operational performance has improved considerably, with increased business volumes in 2025 coupled with a positive underwriting income and an operating cash inflow. This will also address auditors’ observation with regards to material uncertainty highlighted in the auditors’ report in 2024, which does not appear in auditors review of 2025 interim results.
Liquidity indicators have been improving with better net cash generation, while investment risk remains contained owing to a conservative portfolio structure. Capitalization remains moderate in relation to planned expansion, although the approved capital enhancement framework provides potential headroom over the medium term.
Sustained growth in underwriting volumes, contained claims experience, effective collection of receivables, and timely materialization of capital augmentation initiatives will remain central to maintaining ratings going forward.
For further information on this ratings announcement, please contact 042-35723411-13 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