Press Release

VIS Reaffirms IFS Rating of Jubilee General Insurance Company Limited

Karachi, December 04, 2023: VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength Rating of Jubilee General Insurance Company Limited (‘JGI’ or ‘the Company’) at ‘AA++(IFS)’ (Double A Plus Plus (IFS)). The rating signifies very strong capacity to meet policyholder 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’. The previous rating action was announced on December 30, 2022.

The rating assigned to JGI derives strength from its strong sponsorship profile with presence of Aga Khan Fund for Economic Development, and related entities, as the majority shareholders. The rating also reflects the Company’s market positioning as the third largest private sector insurance company, with a market share of 13%, in Pakistan. The business risk profile of insurance industry is currently elevated owing to projected slowdown in the domestic economic activity due to high interest rates, rupee devaluation, heightened inflation levels, destruction caused by floods coupled with expected rate hardening by international reinsurers.

However, the Company’s topline grew notably, driven by the fire & property segment, largely on the account of upward revisions in sum insured and premium rates in line with inflationary pressure. The Company’s strategy to focus on technological development given roll out of new digital app is viewed positively for future growth. Loss ratios exhibited volatility during the rating review period; an increase was noted during the outgoing year owing to both uptick in quantum and average size of claims, impacting the combined ratio despite rationalization of underwriting expenses. Moreover, the rating derives comfort from the sound reinsurance arrangements with renowned international reinsurers. Overall liquidity profile is considered satisfactory as exhibited by liquid asset coverage of net technical reserves. On the other hand, insurance debt to gross premium and financial leverage was recorded higher at end-1HCY23, consistent with half year trends. However, given the inherent cyclicality in the insurance industry, the management believes that the aforementioned indicators are expected to revert back to normal ranges; the same has been built into the assigned rating. Going forward, the rating will remain sensitive to the Company’s ability to maintain market dominance while navigating the challenging business environment.

For further information on this ratings announcement, please contact Ms. Maham Qasim (Ext: 8010) or the undersigned (Ext: 207) on 021-35311861-64 or email at

Sara Ahmed

Applicable Rating Criteria: General Insurance (October 2023)

VIS Issue/Issuer Rating Scale

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