Press Release

VIS Reaffirms IFS Rating of Jubilee Life Insurance Company Limited

Karachi, March 01, 2022: VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength Rating of Jubilee Life Insurance Company Limited (JLI) at ‘AA+’ (Double A Plus). The rating signifies very high capacity to meet policyholder and contractual obligations. Risk is modest, but may vary slightly over time due to business/economic conditions. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on February 23, 2021.

JLI’s ratings are supported by its strong market positioning in the domestic life insurance industry, as reflected by its market share of 41.6%and 20.1% in the private sector and overall life insurance industry respectively in 2020. Market share remains aligned with benchmark for the assigned rating. Rating also incorporates longstanding operational track record of JLI, spanning over 2 decades and its sponsor profile, given controlling stake is vested with Aga Khan Fund for Economic Development (AKFED).
Rating takes into account sizable liquid assets, which provide comfortable coverage and excess buffer over insurance liabilities. On the back of strong RoAE and prudent retention, JLI, over the years, has built sizable capital buffers. Given contraction in underwriting, JLI’s operating leverage has trended down during the period under review. Capital buffers remain aligned with benchmarks for the assigned rating.

JLI has in place a committee based investment management infrastructure, wherein the committee includes members of the Company’s Board Finance & Investment Committee and representatives of the investment function. Strong Corporate governance infrastructure in place at JLI has also been factored into the ratings, particularly with JLI being a listed entity.
For further information on this rating announcement, please contact Mr. Arsal Ayub, CFA or the undersigned (Ext. 306) at 021-35311861-70 or email at info@vis.com.pk .




Faryal Ahmad Faheem
Deputy CEO

Applicable Rating Criteria: Life Insurance & Family Takaful - February 2018

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