PACRA Maintains IFS Rating of IGI General Insurance Limited

The IFS Rating of IGI General Insurance Limited (“IGI General” or “the Company”) derives support from its strong sponsors, Packages Group (“the Group”), through IGI Holdings. The Sponsors’ established business acumen and effective representation on the Board continue to strengthen the Company’s governance framework and strategic oversight. Pakistan’s general insurance industry reported total GPW of ~PKR 170bln in 9MCY25 (9MCY24: ~PKR 171bln), registering a marginal YoY decline of ~0.58%. Industry’s underwriting performance weakened, with underwriting results declining by ~50% YoY to ~PKR 4.8bln (9MCY24: ~PKR 9.6bln). Investment income also contracted by ~16% YoY, primarily on account of monetary easing, thereby exerting pressure on overall profitability across the sector. Against this challenging backdrop, IGI General Insurance Limited sustained its strong market standing, maintaining a GPW-based market share of ~7.8% in 9MCY25. The Company underwrites both conventional and window takaful business, with the conventional segment contributing ~84% to total GPW and takaful accounting for the remaining ~16%. During 9MCY25, GPW posted a healthy growth of ~11% YoY, reflecting value-accretive expansion despite subdued industry conditions. Net insurance premium increased by ~16%, indicating improved retention levels alongside higher business volumes. Segment-wise, Fire & Property remained the largest contributor, accounting for ~37% of GPW, followed by Motor (~19%), Accident & Health (~18%), Miscellaneous (~16%), and Marine (~10%). The combined ratio remained broadly stable at ~89%. While the loss ratio increased to ~59%, the expense ratio improved to ~30%, reflecting enhanced cost discipline and operational efficiency. IGI General maintained a stable claims-paying capacity, underpinned by the strength of its reinsurance arrangements, providing effective risk absorption and support for the settlement of claims.Going forward, sustained underwriting prudence, disciplined risk selection, and effective claims management will be essential to preserving margins in a competitive environment. Profit after tax reflected moderation amid comparatively lower investment income; however, investment income continues to underpin profitability, contributing ~56% to operating profit. The investment portfolio expanded to ~PKR 7,499mln as of Sep’25 (Sep’24: ~PKR 6,392mln), with government securities comprising ~35% of total investments, supporting liquidity and capital preservation. Liquid investments stood at ~PKR 7,077mln, augmenting the liquid investments-to-equity ratio to ~177%, indicative of a strong capital buffer. The equity base strengthened to ~PKR 3,998mln (Sep’24: ~PKR 3,109mln), supported by internal profit generation. Reinsurance arrangements with reputable international partners continue to provide effective risk mitigation, with an overall gross reinsurance ratio of ~50%, particularly significant in the Fire and Marine segments. Overall, IGI General remains well-positioned, underpinned by strong sponsor backing, a stable market presence, disciplined underwriting performance, ample re-insurer support, and a robust and liquid investment portfolio.
The rating remains contingent upon the Company’s ability to further strengthen its market position and enhance underwriting profitability. Continued support from investment income, maintenance of a sustainable segment mix, and efficient expense management will remain imperative for sustaining financial performance and capital strength, 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.