The Pakistan Credit Rating Agency Limited
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PACRA Maintains IFS Ratings of Jubilee General Insurance Company Limited

Rating Type IFS
(03-Nov-23 )
(03-Nov-22 )
Action Maintain Maintain
IFS Rating AA++ (ifs) AA++ (ifs)
Outlook Stable Stable
Rating Watch - -

In terms of Gross Premium Written (GPW), the general insurance industry has a total size of ~PKR 84bln during 6MCY23 (6MCY22: ~PKR 66bln), exhibiting a growth of ~28%. However, the underwriting performance of the industry witnessed a dip of ~72% and reported at ~PKR 863mln during 6MCY23 (6MCY22: ~PKR 2.9bln). Investment income contributed to the industry's earnings reported at ~PKR 7.7bln during 6MCY23 (6MCY22: ~PKR 5.1bln). However, current economic conditions remain imperative for the overall performance of insurance industry.
The rating drives comfort from Jubilee General Insurance Company Limited (‘Jubilee Insurance’ or ‘the Company’) held by the Agha Khan Development Network (‘Agha Khan Network’). The strong presence of Agha Khan Network in the financial industry allows Jubilee Insurance to reap benefits through Group’s financial institutions i.e., Habib Bank Limited and Jubilee Life Insurance Company Limited. Moreover, strong governance framework and aligned managerial practices sustain the well-established operational network of the Company. GPW grew by ~42% during 9MCY23, mainly trickling from fire segment at ~43%; whereas, a balanced mix is acquired through motor ~13%, health ~15%, and miscellaneous segments ~22%. Through adaptation of a secure return strategy, channeled through government securities and a mix of equity securities, Jubilee Insurance managed to generate investment income of ~PKR 2.2bln during 9MCY23. Positive underwriting results along with improved investment income seeds the Company’s bottom-line. Jubilee General has sound equity base and sufficient liquidity engendering strong risk absorption capacity. The business strategy, going forward, is focused on improving its market position and consequent profitability from core business.
Sustainability of business segments and efficient expense management remains imperative to the financial performance. Moreover, investment book's performance, diverted towards fixed term avenues, is crucial for ratings sustenance. The rating remain dependent upon the Company's sustained market position and benefiting from the sound Group profile.

About the Entity
Jubilee General Insurance Company Limited ("Jubilee General" or "the Company") was incorporated in May-53 as a public listed company. Principal activity involves managing non-life insurance through Conventional and Window Takaful operations in Fire and Property, Marine and Aviation, Accident and Health and Motor segments. Major stake of the Company lies with the Aga Khan Development Network and the Hashwani Group (~71.7%).The Company's Board is chaired by Mr. Akabarali Pesnani. While, Mr. Hassan Khan serves as the CEO. He is assisted by experienced professionals.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.