Press Release

VIS Reaffirms IFS Rating of Chubb Insurance Pakistan Limited

Karachi, December 27, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the Insurer Financial Strength rating of Chubb Insurance Pakistan Limited (CIPL) 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 March 31, 2022.

CIPL operates as a wholly owned subsidiary of Chubb INA International Holdings Limited (U.S.A). The company follows a very selective underwriting strategy. CIPL’s primary competitive advantage is the sizable treaty capacities arranged with associate Group company; as the counterparty, in this case is highly rated on the international scale, it allows CIPL to underwrite complex and specialized risks across the property line. The assigned rating derives strength from the sponsor profile of Chubb Group, representing the world’s largest property and casualty insurers with operations in 54 countries. The rating also reflects the technical and financial assistance received by CIPL from the parent company.

The rating incorporates growth momentum evidenced in business volumes, improvement in underwriting results on a timeline basis despite higher loss ratio recorded along with sustainable and growing investment income. Capitalization is supported by relatively low operating leverage on a timeline basis while financial leverage increased in the ongoing year in line with higher net technical reserves. Liquidity is considered sound as liquid assets in relation to technical reserves, though decreased, remained sizable. With projected slowdown in the economic activity due to high interest rates, rupee devaluation, and elevated inflation levels, key focus area for the management would remain fire with balanced mix in power and property which would be important from the underwriting risk in management perspective. Going forward, achieving growth in market share while maintaining loss ratios, underwriting quality and profitability metrics would remain an important rating driver.

For further information on this rating announcement, please contact Ms. Maham Qasim (042-35723411-13, Ext. 8010) and/or the undersigned at 021-35311861-66 (Ext. 207) or email at

Sara Ahmad

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 .