Press Release

VIS Reaffirms IFS Rating of The Co-operative Insurance Society of Pakistan Limited

Karachi, December 20, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of The Co-operative Insurance Society of Pakistan Limited (CISPL) at ‘BB+’ (Double B Plus). The IFS rating of ‘BB+’ denotes marginal capacity to meet policyholders and contract obligations. Though positive factors are present, risk factors are relatively high, and the impact of any adverse business and economic factors is expected to be significant. Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on March 31, 2022.

The rating assigned to CISPL takes into account limited business volume with restricted capacity of the Society to meet policyholder and contractual obligations. The Society reported some growth in business during 9MFY22 mainly on account of increase in business from Punjab Provincial Cooperative Bank Limited (PPCBL), which is the Society’s largest shareholder. Overall market presence of the Society remained limited owing to meager organic growth from its branch network on a timeline basis. While claims ratio continued to be low, consistently higher expense ratio on account of contraction in topline during the last few years resulted in underwriting losses. Investment and rental income have provided support to the bottom line over the years. Liquid assets in relation to net technical reserves have remained sound. Insurance debt as proportion of gross written premium remained minimal. Both operating and financial leverages are reported very low, providing considerable room for growth. Credit risk emanating from reinsurance panel selection is sound with the reinsurer rated in category ‘AA’. The rating remains dependent on growth in business and profitability with optimization of capitalization indicators.

For further information on this rating announcement, please contact Ms. Tayyaba Ijaz, CFA at 042-35723411-13 (Ext. 8005) and/or the undersigned at 021-35311861-66 (Ext. 201) or email at

Javed Callea

Applicable Rating Criteria: General Insurance (March 2022)

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 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .