Press Release

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

Lahore, January 2, 2024: 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 December 20, 2022.

The rating assigned to The Cooperative Insurance Society of Pakistan Limited (CISPL) takes into account limited business volume with restricted capacity of the society to meet policyholder and contractual obligations. Over the rating review period, the Society reported growth in business majorly on account of higher premium prices in conjunction with inflationary pressure and increasing asset valuation. Overall market presence of the Society has remained restricted owing to meager organic growth from its branch network on a timeline basis. While net claims ratio remained low, underwriting losses have been registered on a timeline owing to persistently high expense ratio despite improvement in the same in the ongoing year due to uptick in the topline. Nonetheless, underwriting losses were offset largely by rental income, resulting in a positive bottom-line despite no investment returns being registered in the ongoing year.

Liquid assets in relation to net technical reserves have remained sound. Insurance debt as proportion of gross written premium remained minimal amidst limited business volume. Both operating and financial leverages have also remained very low and provide considerable room for growth. Credit risk emanating from reinsurance panel selection remains sound with the reinsurer rated in category ‘AA’. The rating remains dependent on growth in business and profitability while optimizing capitalization indicators.

For further information on this ratings announcement, please contact Ms. Maham Qasim at 042-35723411-13 (Ext: 8010) or the undersigned at 042-35723411-13 (Ext: 8008) or email at

Maimoon Rasheed

Applicable Rating Criteria: General Insurance (October 2023)

VIS Issue/Issuer Rating Scale

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 .