PACRA Maintains IFS Ratings of Jubilee General Insurance Company Limited

Jubilee General Insurance Company Limited (‘Jubilee Insurance’ or ‘the Company’) holds a considerable standing in Pakistan's general insurance industry. The Company drives strength from Aga Khan Development Network (‘AKDN') holding strong presence in the financial industry, through Habib Bank Limited, Jubilee Life Insurance Company Limited and Jubilee Insurance. A robust governance framework, well aligned with the managerial practices support the Company's overall operations; also, bodes well for the IFS rating.
The Company holds a robust business profile with Gross Premium Written (GPW) trickling in majorly (~90%) from conventional operations, with a support of ~10% from window Takaful operations. With in each line of operations, fire and property (~45%) remains the main GPW generating segment, followed by miscellanous (~24%), accident & health (~12%), motor (~10%), and marine (~9%). GPWs growth of ~23% is mainly driven by conventional (~22%), followed by window Takaful (~25%) operations. This growth remains a factor of value uptick with modest volumes flowing in. Jubilee Insurance's bottomline is strong due to stable underwriting performance (~PKR 625mln) and considerably strong investment returns (~PKR 1.9bln). The Company's investment strategy (portfolio size of ~PKR 26.7bln) remains inclined to secure avenues, government securities along with a diverse mix of blue-chip equity securities. Going forward, the recovery of economic activities, improvements in both the micro and macroeconomic landscape, along with improved inflation and easing global commodity prices, are expected to positively impact the Company's overall performance. On the financial risk front, Jubilee Insurance is supported by the Company's strong risk absorption capacity, underpinned by sufficient liquidity. Additionally, the Company has demonstrated financial stability through consistent dividend payments. The presence of internationally recognized and high rated reinsurers also provides confidence in the Company's operations.
Sustainability of business segments and efficient expense management remains imperative to the financial performance. Moreover, investment book's performance, diverted towards high growth avenues, is crucial for the rating. 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 (~77%).The Company's Board is chaired by Mr. Akabarali Pesnani. While, Mr. Hassan Khan serves as the CEO. He is assisted by experienced professionals.