Press Release

VIS Reaffirms IFS Rating of Jubilee General Insurance Company Limited

Lahore, February 4, 2025: VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength (IFS) Rating of Jubilee General Insurance Limited (JGI or ‘the Company’) at ‘AA++ (IFS)’ (Double A Plus Plus (IFS)). The IFS rating of ‘AA++(IFS)’ denotes 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’. The previous rating action was announced on December 4, 2023.
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 11.9%, in Pakistan. The Company’s GWP grew in the review period, driven by the fire & property segment, on the account of upward revisions in premium rates as well as onboarding of new clients. Profitability of the Company also improved during for CY23 and 9MCY24 on account of substantial improvement evidenced in the investment income coupled with an uptick in the underwriting profits. The Company’s strategy to focus on technological developments such as development of J2 App to accelerate policy issuance and claims settlements, API integration with Zurich Insurance, partnership with Pak Suzuki for digital insurance issuance, and new cybersecurity measures are reflected in the assigned rating along with ESG initiatives undertaken by the Company.

Rating derives comfort from the sound reinsurance arrangements with renowned international and local reinsurers. Liquidity profile is considered satisfactory as exhibited by liquid asset coverage of net technical reserves. JGI is also considered sound from a solvency risk perspective as the Company has adequate cushion in terms of total admissible assets over liabilities. Since majority of investment portfolio is vested in government securities, the credit risk is considered manageable.

Going forward, the rating will remain sensitive to the Company’s ability to maintain market share, manage the factors leading to underwriting losses and sustain the profitability momentum, supported by investment income, amid declining interest rate environment.

For further information on this ratings announcement, please contact 042-35723411-13 or email at info@vis.com.pk

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2025 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .