Press Release

VIS Reaffirms IFS Rating of Chubb Insurance Pakistan Limited

Karachi, December 4, 2023: VIS Credit Rating Company Limited (VIS) has reaffirmed the Insurer Financial Strength (IFS) 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 December 27, 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 insurer with operations in 54 countries. The rating also reflects the technical and financial assistance received by CIPL from the parent company.

The rating incorporates positive trajectory of business volumes, improvement in underwriting results on a timeline basis despite higher loss ratio recorded along with sustainable and growing investment income. Liquidity profile is considered sound underpinned by growth in liquid assets in relation to technical reserves coupled with comfortable aging of receivables. The Company has maintained adequate reserves as solvency margin against regulatory requirement. The operating leverage ratio increased during the review period in line with augmentation of scale of operations; however, on account of appropriate reinsurance coverage there is no sizable risk accumulation on the net account. In addition, the aging profile of the claim’s payable was satisfactory with no claim due for more than a year at end-FY22. With ongoing 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 and accident & health with balanced mix in power and property which would be important from the underwriting risk management perspective. Going forward, achieving growth in market share, maintaining underwriting quality and profitability indicators along with rationalization of claims ratios would remain important rating drivers.

For further information on this ratings announcement, please contact Ms. Maham Qasim at 042-35723411-13 (Ext: 8010) or the undersigned (Ext: 207) on 021-35311861-64 or email at

Sara Ahmed

Applicable Rating Criteria: General Insurance (October 2023)

VIS Issue/Issuer Rating Scale

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