Press Release

VIS Reaffirms IFS Rating of Security General Insurance Company Limited

Lahore, December 31, 2024: VIS Credit Rating Company Limited (VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of Security General Insurance Company Limited (SGICL or “the Company) at ‘AA+’ (Double A Plus). The rating signifies 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 December 26, 2023.

The assigned rating to SGICL reflects its strong financial position, sound underwriting performance, and association with a prominent conglomerate, Nishat Group. SGICL has demonstrated consistent growth in its gross written premium (GWP), primarily driven by the fire segment, which remains the dominant contributor. The Window Takaful Operations (WTO) also exhibited positive momentum, with growth in contributions and surplus. Claims performance improved, supported by conservative underwriting, effective pre-screening of clients, and sound reinsurance arrangements with a panel of reputable reinsurers. SGICL’s investment portfolio, primarily strategic investments in group companies, has benefited from unrealized gains, bolstering its capitalization profile. The Company maintains a significant buffer over the regulatory solvency requirement, and leverage indicators remain the lowest among peers, providing ample room for operational expansion.

Liquidity indicators, remain adequate, to meet the claims. The diversified reinsurance program mitigates risk exposure, and the Company's underwriting profit improved significantly during the ongoing year, aided by lower claims ratios and higher net premium. Nonetheless, the high concentration of equity investments introduces price risk, making vigilant market risk management imperative for the ratings moving forward. Additionally, the ratings will depend on the company’s ability to maintain sound underwriting quality and liquidity indicators in line with the established thresholds.

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

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 2024 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .