PACRA Maintains IFS Rating of IGI General Insurance Limited

Pakistan's general insurance industry has a total size of ~PKR 99bln during 6MCY24 (6MCY23: ~PKR 84bln), exhibiting a growth of ~18% in Gross Written Premium (GWP). The industry reported an increase of ~130% in underwriting results (6MCY24: PKR 6bln, 6MCY23: PKR 2.6bln). The investment income of the industry also experienced an increase of ~50% to PKR 11.6bln during 6MCY24 (6MCY23: PKR 7.7bln). However, current economic conditions remain imperative for the insurance industry's overall performance.
IGI General Insurance (‘IGI General’ or ‘the Company’) gathers support from substantially strong sponsors, Packages Group (‘the Group’), through IGI Holdings. Strong business acumen, combined with the requisite representation of the Sponsors on the Board, strengthens the governance framework. The Company holds a strong position in the insurance industry and underwrites both conventional and window takaful business, where the conventional side constitutes the majority (~84%) of the Company’s business. Fire & Property remains the top-performing segment, contributing ~37% to the overall GPW, followed by Motor (~19%), Accident & Health (~18%), Miscellaneous (~16%), and Marine (~10%) segments. GPW witnessed a value-driven growth of ~8%, while the volumetric increase remains minimal. The underwriting results grew by ~32%. However, further enhancement of core business profits through prudent business underwriting remains crucial going forward. The Company's performance has been strengthened through effective management of investment income, driving improved profitability. Financial robustness is notable, supported by a strong investment portfolio and equity base. The investment book is majorly allocated to government securities (~46%), ensuring stable and solid liquidity. On the equity front, the Company has a strong footing to support its operations. Reinsurance arrangements with international partners provide additional protection, instilling confidence in the Company's ability to navigate uncertainties effectively. Overall, IGI General Insurance is well-placed to achieve sustained growth and profitability in the evolving insurance landscape. Its solid market position, strong financial health, strategic investment book, and effective governance structure highlight resilience and capacity to create long-term value for stakeholders. Moving forward, prioritizing efficient claims management will be essential to maintain disciplined underwriting results.
The rating depends on the continuous strengthening of the Company's market position and growing underwriting profits. Consistent support from the investment income remains fundamental for the rating. A sustainable segment mix and efficient expense management are imperative to the financial performance, with further progress envisaged.

About the Entity
IGI General Insurance Limited ('IGI General' or 'the Company') was incorporated on 18-Nov-16 as a public unlisted concern. The principal activity is to underwrite non-life insurance business through Conventional and Window Takaful in Fire and Property, Marine, Accident and Health, Motor, and Miscellaneous segments.
The Packages Group, through IGI Holdings, holds a ~100% stake in the Company. The Board is chaired by Mr. Shamim Ahmad Khan, while Mr. Faisal Khan has been serving as the Company's CEO for the past year. He is assisted by a team of experienced professionals.