Press Release

VIS Reaffirms IFS Rating of Security General Insurance Company Limited

Karachi, December 29, 2022: VIS Credit Rating Company Limited VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of Security General Insurance Company Limited (SGICL) at ‘AA+’ (Double A Plus). The IFS rating of ‘AA+’ 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 ratings is ‘Stable’. The previous rating action was announced on March 31, 2022.

The rating assigned to SGICL takes into account its association with a large diversified conglomerate “Nishat Group” having business interests in banking, textile, cement, power generation, real estate, hospitality, automobile, dairy and paper products. The company posted a steady growth in gross premium revenue during the ongoing year. Financial and operating leverage have remained low on a timeline basis and reflects strong loss absorption capacity. The liquidity position is considered adequate in terms of sizeable liquid assets in relation to technical reserves and borrowings. However, insurance debt in relation to gross premium needs to remain within the peer group parameters.
The assigned rating is also supported by a sound reinsurance panel; all reinsurers, except one, are rated in category ‘A’ or higher. Claims performance remained under pressure due to higher incidence of losses pertaining to flood related damages during third quarter of the ongoing year. SGICL has limited exposure in Agri and Livestock while major losses were mainly related to the Motor segment. Meanwhile, overall conservative approach towards underwriting insurance policies, effective pre-screening of market-based clients for their past track record, and adequate reinsurance coverage led to consistently good claim performance. The recurring investment income has provided notable support to the bottom line on a timeline basis. The ratings will remain dependent on achieving projected growth in business volumes while maintaining sound underwriting quality and liquidity indicators amidst stressed economic situation of the country.

For further information on this rating announcement, please contact Ms. Tayyaba Ijaz, CFA at 042-35723411-13 (Ext. 8004) and/or the undersigned at 021-35311861-66 (Ext. 207) or email at

Sara Ahmed

Applicable Rating Criteria: General Insurance (March 2022)

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