The Pakistan Credit Rating Agency (PACRA) maintained its IFS rating for Jubilee General Insurance Company Limited (JGICL) at ‘Double A’ with positive outlook, according to a statement of PACRA on Monday.
“The IFS rating denotes a very strong capacity of the company to meet policyholder and contract obligations. At the same time, risk factors are considered modest, and the impact of any adverse business and economic factors is expected to be very limited,” said Amara Gondal, an analyst at PACRA in the statement.
JGICL is rated ‘AA’ because of its robust risk management framework, which facilitates the company in sustaining sound underwriting practices despite volatile socio-economic fundamentals, she added.
The rating also recognizes the management’s persistent efforts of penetrating relatively untapped segments through innovative products, which is reflected in its relatively more diverse premium mix compared to peers.
Moreover, the rating takes into account Jubilee General’s sound equity base and sufficient liquidity engendering strong risk absorption capacity. The ability of key sponsor of the company, Agha Khan Development Network group, to foster synergies amongst its financial institutions operating in Pakistan - Habib Bank Limited, Jubilee General, and Jubilee Life - and in the group’s different insurance companies across the globe, lately branded as ‘Jubilee’, is also a key rating factor.