Press Release

VIS Reaffirms IFS Rating of IGI General Insurance Limited

Lahore, December 22, 2023: 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 December 29, 2022.

Rating assigned to IGI derive strength from association with its primary shareholder Packages Group having diversified investment portfolio with sound financial profile. The focus in business strategy continued on Fire and Property with reduction in Motor segment, due to overall demand decline, taken up by the Accident and Health segment. Rating incorporates a mixed trend in underwriting performance with decline in the outgoing year on account of sizable losses under fire segment; the same was marked by recovery during HY23. Subsequently, the recovery in loss ratio resulted in the improvement of combined ratio and net operating ratio during the rating review period. On the other hand, despite incurrence of a historical loss, the reporting of positive bottom line during CY22 exhibits the resilience of the Company’s operating performance along with sound reinsurance coverages.

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. With the ongoing macroeconomics the management focus is planned to remain on low risk segments. Conservative investment mix continues to support the rating. Moreover, the insurance debt in relation to gross premium has largely remained range bound and commensurate with the assigned rating. In addition, the aging of receivables and claims is considered satisfactory. The rating factors in improvement in net financial leverage during the review period indicating that the financial risk profile of the Company is well supported by reinsurance coverage. However, the rating remains sensitive to increase in operating leverage in line with growth in operating scale and limited growth in equity base due to significant dividend payouts. Moreover, liquidity position demonstrated weakening during the outgoing year on account of decline in liquid assets stemming from redemption of mutual funds for servicing of claim payments. Going forward, achieving growth in market share while maintaining loss ratios, liquidity profile and profitability metrics would remain an important rating driver.

For further information on this ratings announcement, please contact Ms. Maham Qasim at 042-35723411-13 (Ext: 8010) or the undersigned (Ext: 201) on 021-35311861-64 or email at

Maimoon Rasheed

Applicable Rating Criteria: General Insurance (October 2023)

VIS Issue/Issuer Rating Scale

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