Analyst
Maryam Arshad
maryam.arshad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Harmonizes IFS Rating of Jubilee General Insurance Company Limited
Rating Type | IFS | |
Current (31-Mar-22 ) |
Previous (05-Nov-21 ) |
|
Action | Harmonize | Maintain |
IFS Rating | AA++ (ifs) | AA+ |
Outlook | Stable | Stable |
Rating Watch | - | - |
Insurer Financial Strength (IFS) rating is an independent opinion on the relative “capacity of an insurance company to meet policyholder and contract obligations”. To facilitate insurance companies and users of IFS ratings, PACRA has modified the IFS rating scale. The primary objective behind this modification was to: a) Create distinction in symbols and definitions of IFS Ratings and Credit Ratings; previously same symbols were being used for both type of ratings. Now IFS symbols are exclusive for IFS ratings b) Eliminate ambiguities in terms of “Rating Category” and “Notch”; this has now been achieved in the modified scale, which will be helpful in understanding the meaning and connotation of each rating category and notch, c) Update certain definitions for more clarity.
This is expected to eliminate any overlap or ambiguity regarding rating categories and notches; thus, facilitating all stakeholders. The modified scale is applicable for all outstanding IFS ratings including “Jubilee General Insurance Company”.
About
the Entity
Jubilee General, incorporated in 1953, is the third largest general insurance company in Pakistan and is listed on Pakistan Stock Exchange. Significant shareholders of Jubilee General consist of Aga Khan Development Network including Habib Bank Limited and Hashoo Group. AKDN represents a group of development agencies having ownership stake in commercial ventures operating in sectors like insurance, banking, hotels, education, and tourism. HBL is the country's largest private sector bank and is rated 'AAA'. Jubilee General's BoD comprises ten members including the CEO. The Chairman of the board, Mr. R. Zakir Mahmood, is a distinguished banker with over 35 years of experience. Mr. Hassan Khan, the company's MD since Jan-2020, is a graduate engineer, MBA, with extensive experience in the field of insurance. A team of qualified professionals assist the MD.