Press Release

VIS Reaffirms IFS Rating of IGI General Insurance Limited

Karachi, December 29, 2022: VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength (IFS) rating of IGI General Insurance Ltd. (IGI) 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.

Rating assigned to IGI derive strength from association with its primary shareholder, improved penetration of un-tapped markets and business growth surpassing industry growth in gross premiums during the rating review period. Rating factors in reduction in overall underwriting profit during the review period due to sizable losses under fire segment during the ongoing year. In addition, stemming from higher loss ratio reported, the rating factors in weakening of combined ratio, financial leverage and liquidity indictors. On the flip side, despite incurrence of an aforementioned loss coupled with flood related losses, the reporting of positive bottom line during CY22 and 3QCY22 exhibits the resilience of the company’s operating performance along with sound reinsurance coverages and support of investment and other income. The rating further incorporates reinsurance arrangements largely with counterparties having sound credit risk profiles with appropriate risk retention on net account to maintain risk appetite of the company. Assigned rating also accounts for the stability and expertise of the management team in the insurance sector. Conservative investment mix continues to support the rating. On the other hand, the insurance debt in relation to gross premium has increased on a timline basis and needs to be addressed. Nevertheless, the aging of receivables is considered satisfactory. Moreover, the increase in operating and financial leverages are increasing the sensitivity of the ratings. 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. 201) 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 .