Adamjee Insurance Company Limited

RATING REPORT | Feb-26

Logo
Rating History
Dissemination Date IFS Rating Outlook Action Rating Watch
27-Feb-26 AA++ (ifs) Stable Maintain -
01-Mar-25 AA++ (ifs) Stable Maintain -
01-Mar-24 AA++ (ifs) Stable Maintain -
02-Mar-23 AA++ (ifs) Stable Maintain -
31-Mar-22 AA++ (ifs) Stable Harmonize -
About the Entity

Adamjee Insurance Company Limited ('Adamjee Insurance' or 'the Company') was incorporated in 1960 as a public listed concern. The principal activity includes managing non-life insurance through Conventional and Window Takaful in Fire and Property, Marine and Transport, Accident and Health, Motor, and Miscellaneous segments.
The Nishat Group and associates holds ~40.5% stake in the Company. The Board is chaired by Mr. Umer Mansha, while Mr. M. Ali Zeb is the CEO. They are assisted by a team of experienced professionals.

Rating Rationale

The IFS rating of Adamjee Insurance Company Limited (‘Adamjee Insurance’ or ‘the Company’) derives significant strength from its association with the prominent business conglomerate, Nishat Group, primarily through its strategic and financial linkage with MCB Bank Limited. The Group’s diversified presence across key economic sectors provides the Company with sustainable strategic direction, financial flexibility, and operational support. Furthermore, effective representation of the Group at the Board level ensures strong oversight, reinforced governance, and supportive decision-making framework, aligned with long-term business objectives. The Company maintains an established position within Pakistan’s General Insurance Industry supported by extensive product portfolio and diversified customer base.
Adamjee Insurance underwrites conventional and window takaful business in Pakistan and the UAE, with conventional business representing 94% of total operations. The UAE now accounts for 51% of total business, up gradually over the years, while Pakistan contributes 49%. During 9MCY25, the Company’s GPW grew 11%, led by Motor (54%), Fire & Property (25%), Accident & Health (12%), Marine (5%), and Miscellaneous (4%), with Motor dominating the UAE portfolio. The Company posted an overall underwriting profit of PKR 775mln in 9MCY25, up 126% from PKR 315mln in 9MCY24.
At the bottom line, the Company’s performance is supported by its investment portfolio in the group companies, the equity market, and government securities, which continue to generate steady dividend and interest income, leading to an improved profitability. Despite substantial standing in Pakistan’s insurance market, management of loss ratio remains crucial for the assigned rating. On the financial risk front, the Company holds adequate liquidity with considerable equity standing. Higher claims stress the commercial efficiency; however, the Company gathers support from a diversified and creditworthy reinsurer panel.
Overall, Adamjee Insurance is strongly positioned and digitally enabled to sustain growth in the dynamic insurance sector. Its market leadership, solid financial profile, strategic investments, and governance framework underscore its resilience and capacity to deliver long-term value. The company is planning to add digital insurance products for its customers. Going forward, enhancing claims management efficiency will be critical to sustaining disciplined underwriting performance.

Key Rating Drivers

The rating is supported by the profitability of the core business and investment income. Maintaining a strong market position, alongside growth in underwriting profits, remains fundamental. A balanced segment mix and efficient expense management are critical to financial performance.

REPORT CONTENTS
  1. Rating Analysis
  2. Financial Summary
  3. Rating Scale
  4. Regulatory Disclosure

METHODOLOGY

RATING ANALYST

  • Muhammad Azmat Shaheen
  • azmat.shaheen@pacra.com
  • +92-42-35869504
  • www.pacra.com

Adamjee Insurance Company Limited


Rating Analysis

Logo
Profile
Legal Structure

Adamjee Insurance Company Limited ("Adamjee Insurance" or "the Company") was incorporated in Sept-60 under the repealed Companies Act 1913 (now called the Companas Act 2017) as a public listed concern


Background

The Company was established with a paid-up capital of ~PKR 2.5mln, and later, in 1972, it tapped in UAE market. Over time, there have been significant developments in the segmental mix and product slate. In 2004, significant ownership stake was acquired by the Nishat Group ('the Group'). The Company acquired the license to begin window takaful operations in 2015.


Operations

The Company operates in both, Conventional and Takaful business, to underwrite in fire, motor, marine & transport, accident & health, and miscellaneous segments. The Company operates through a network of 115 branches, in addition to 20 specialized agriculture field offices, and three branches are located in UAE. The head office is located in Lahore.


Ownership
Ownership Structure

The Group owns a majority stake through MCB (~20%) and other Group entities (~20.5%). Joint Stock companies / Pension funds hold ~30.3%, whereas ~4% stake is held by Foreign Companies. Directors hold ~0.03% while the remaining stake (~25.2%) is held by the general public


Stability

The ownership seems steady as the majority stake is held by the Group, holding interests in various business sectors in local and international arena.


Business Acumen

The Group leverages expertise and a diversified business portfolio to drive policy, governance, and captive business for the Company.


Financial Strength

The Company is a part of the Group that holds significant financial footings across the banking and textile sectors


Governance
Board Structure

The overall control of the Company lies with an eight-member Board (BoD), out of which, five are Non-Executive (including one female), one is an Executive (the CEO), and two are Independent Directors. The BoD is dominated by the representatives of the Group.


Members’ Profile

The BoD is chaired by Mr. Umer Mansha with an overall experience of above two decades in various Group companies and has been associated with the BoD since 2007. Mr. Imran Maqbool, a Non-Executive Director, with an overall experience of more than three decades in banking, has been associated with the BoD since 2012. All other members possess diversified and rich business acumen


Board Effectiveness

The BoD meets quarterly and is assisted by Audit, Investment, and Ethics, Nomination, Human Resource & Remuneration Committees. Audit and HR Committees are headed by an Independent Director and meet quarterly & twice a year, respectively


Transparency

For CY24, KPMG Taseer Hadi & Co. served as the external auditor and issued an unqualified audit report. The firm is QCR-rated and listed on the SBP’s panel under category “A.”


Management
Organizational Structure

The Company operates through Sales/Commercial, Underwriting, Investment, Risk Management, Information Systems, Compliance & Claims, Actuarial Services, Finance, HR, General Services, Legal, Salvage & Auction. The Company also operates window Takaful operations. All the Heads report to the CEO, who then reports to the BoD. However, the Head of Internal Audit and HR functionally reports to the respective BoD committe and administratively to the CEO.


Management Team

Mr. M. Ali Zeb is the CEO since May-13. He has been associated with the Company since Apr-05 and holds an overall experience of more than two decades. The CFO, Mr. M. Asim Nagi, has been associated with the Company since Nov-11 and has had an overall experience of more than two decades. He is assisted by a team of professionals.


Effectiveness

The management is assissted through Underwriting, Re-insurance & Co-insurance, Claim Settlement, and Risk Management & Compliance Committees, which are chaired by the Chairman or the CEO. Meetings are held on quarterly basis.


MIS

The Company deploys IBM Congos business development tool and its related dashboards. This provides management with sophisticated management tools in a structured way, which helps the Company to bring operational efficiency.


Claim Management System

The claim management system works through an authority matrix, where claims up to ~PKR 25mln are approved by the Deputy Executive Director. While, claims above ~PKR 25mln are approved by the CEO and the respective management committee.


Investment Management Function

A formal IPS sets the primary guidelines for investment decisions. The BoDs IC oversees the management of the investment portfolio and makes final decisions. The portfolio is managed by the investment department, with the support of the CFO.


Risk Management framework

The Company's risk management policies are designed to control risks to align with market conditions and the Company's activities.


Business Risk
Industry Dynamics

The general insurance industry in Pakistan operates in a competitive and fragmented landscape, with premium growth largely driven by the Conventional segment alongside a gradually expanding takaful business. Large insurers dominate market share, benefiting from scale, diversified portfolios, and stronger investment income, while smaller players focus on niche segments. Profitability remains sensitive to claims volatility, underwriting discipline, and reinsurance arrangements, particularly amid inflationary pressures. Moreover, low insurance penetration, coupled with evolving regulatory requirements and increasing digital adoption, continues to shape the sector’s growth trajectory and risk profile.


Relative Position

The Company is ranked among the top tier players with a market share of  16% in coventional business and 10% in Window Takaful Operations  in terms of business as of 9MCY25.


Revenue

The Company’s Gross Premium Written (GPW) remains predominantly concentrated in the Conventional segment, accounting for approximately 94% of total premiums, while Window Takaful contributes the remaining ~6%. During 9MCY25, GPW increased by 11% YoY to ~PKR 52.0bln (9MCY24: ~PKR 46.9bln), primarily driven by value-led growth in the Conventional portfolio. Segment-wise, Motor insurance emerged as the leading contributor, representing 54% of GPW, followed by Fire & Property at 25%. Accident & Health contributed ~12%, Marine & Transport 5%, while Miscellaneous lines accounted for the remaining 4%. Going forward, GPW is expected to maintain a similar composition, underpinned by sustained momentum in core Conventional segments and stable demand across ancillary lines.


Profitability

During 9MCY25, the Company reported an underwriting profit of approximately PKR 775mln, a significant improvement compared to PKR 315mln in 9MCY24. Underwriting expenses increased by 41% YoY to PKR 29.4bln (9MCY24: ~PKR 20.8bln), primarily driven by higher claims incidence. Despite elevated claims, investment income continue to provide support to earnings, resulting in profit after tax of ~PKR 4.2bln (9MCY24: PKR 2.98bln), reflecting a 39% YoY growth. Going forward, the continuation of disciplined underwriting and effective risk selection is expected to support sustained improvements in underwriting profitability and, consequently, the Company’s overall earnings profile during CY25.


Investment Performance

The Company’s investment portfolio is primarily allocated to equity securities, which constitute approximately 49.2% of the investment book, followed by cash and bank balances at 34.7%, government securities at 9.7%, investment properties at 3.9%, investments in subsidiaries at 2.6% and debt securities at 0.1%. During 9MCY25, the Company generated investment income of PKR 5.6bln, reflecting a 32% YoY increase from PKR 4.3bln in 9MCY24, mainly driven by higher dividend income and improved returns on debt securities. Going forward, sustained investment income is expected to provide meaningful support to profitability and enhance the Company’s earnings resilience.


Sustainability

The Company envisions on prioritizing operational efficiency and adding value to its existing operations.


Financial Risk
Claim Efficiency

As of 9MCY25, claims outstanding days improved to 232 days from 349 days in 9MCY24, largely attributable to timing differences in claims settlement. Net insurance and takaful claims increased by 43% YoY to approximately PKR 19.8bln (9MCY24: ~PKR 13.9bln), reflecting higher claims incidence. While the Company maintains adequate liquidity and balance sheet capacity to meet its claims obligations, the establishment of a more robust and structured claims management framework—both in the local and international reinsurance markets—would be critical to ensure timely settlements and mitigate operational and counterparty risks.


Re-Insurance

The Company has reinsurance arrangements with leading reinsurers, including Swiss Re (Rated ‘AA-’ by S&P), Hannover Re (Rated ‘AA-’ by S&P), SCOR Re (Rated ‘A+’ by S&P), and Echo Re. This association bodes well for the Company.


Cashflows & Coverages

As of 9MCY25, the Company’s liquidity profile strengthened, with liquid assets to net insurance premium cover improving to ~1.4x (9MCY24: ~1.4x), while liquid assets to outstanding claims cover increased to 2.9x from 1.8x in the same period last year, underscoring the Company’s enhanced claims-paying capacity. The improvement in coverage metrics was driven by a 65% YoY increase in liquid assets, which rose to approximately PKR 74bln (9MCY24: ~PKR 46bln). Going forward, liquidity coverage is expected to remain stable.


Capital Adequacy

As of 9MCY25, shareholders’ equity increased to approximately PKR 46.9bln from PKR 40.6bln in CY24, primarily driven by profit accretion during the period. The Company’s paid-up capital remained unchanged at ~PKR 3.5bln. Going forward, the equity base is expected to follow a similar trajectory, supported by sustained earnings retention and stable capital structure.
 
 

Feb-26

www.pacra.com

Adamjee Insurance Company Limited


Financial Summary

Logo

(PKR mln)


 Sep-25
9M		 Dec-24
12M		 Dec-23
12M		 Dec-22
12M
A. BALANCE SHEET
1. Investments 86,501 68,431 46,361 36,190
2. Insurance Related Assets 33,366 33,004 37,260 30,869
3. Other Assets 7,146 6,616 4,667 4,440
4. Fixed Assets 4,622 4,445 4,359 4,408
Total Assets 131,635 112,496 92,647 75,906
1. Underwriting Provisions 33,004 26,342 20,511 16,066
2. Insurance Related Liabilities 35,699 31,762 33,213 30,155
3. Other Liabilities 16,001 13,736 8,272 4,300
Total Liabilities 84,704 71,840 61,996 50,520
Equity/Fund 46,931 40,656 30,651 25,340
B. INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENT
1. Gross Premium Written/Gross Contribution Written 52,028 58,164 44,329 35,191
2. Net Insurance Premium/Net Takaful Contribution 30,255 29,858 21,783 18,773
3. Underwriting Expenses (29,480) (29,533) (22,921) (18,824)
Underwriting Results 775 325 (1,138) (51)
4. Investment Income 5,694 5,690 4,310 3,163
5. Other Income / (Expense) 286 756 779 (4)
Profit Before Tax 6,755 6,771 3,951 3,108
6. Taxes (2,582) (2,743) (1,710) (562)
Profit After Tax 4,173 4,028 2,241 2,545
PARTICIPANTS' TAKAFUL FUND - PTF
1. Gross Contribution Written 3,346 3,898 2,866 2,514
2. Net Takaful Contribution 1,396 1,886 1,632 1,152
3. Net Takaful Claims (1,508) (2,111) (1,767) (1,281)
4. Direct Expenses Including Re-Takaful Rebate Earned 101 68 24 28
Surplus Before Investment & Other Income/(Expense) (11) (157) (111) (102)
5. Investment Income 32 154 80 45
6. Other Income/(Expense) 25 (20) 9 17
Surplus for the Period 46 (23) (22) (40)
OPERATOR'S TAKAFUL FUND - OTF
1. Wakala Fee Income 833 989 831 641
2. Management, Commission & Other Acquisition Costs (622) (658) (493) (381)
Underwriting Income/(Loss) 211 331 338 260
3. Investment Income 109 187 145 34
4. Other Income/(Expense) 17 58 25 44
Profit Before tax 337 575 508 339
5. Taxes (130) (226) (213) (118)
Profit After tax 207 349 295 220
C. RATIO ANALYSIS
1. Profitability
Loss Ratio - Net Insurance & Takaful Claims / Net Insurance Premium or Takaful Contribution 65.7% 66.3% 70.5% 66.9%
Combined Ratio (Loss Ratio + Expense Ratio) 97.4% 98.9% 105.2% 100.3%
2. Investment Performance
Investment Yield 9.8% 9.9% 10.4% 8.8%
3. Liquidity
(Liquid Assets - Borrowings) / Outstanding Claims Including IBNR 2.9 1.6 1.1 1.2
4. Capital Adequacy
Liquid Investments / Equity (Funds) 163.6% 104.2% 104.9% 112.5%

Feb-26

www.pacra.com

Adamjee Insurance Company Limited


Rating Scale

Logo

Feb-26

www.pacra.com

Adamjee Insurance Company Limited


regulatory disclosure

Logo
  1. Rating Team Statements
    1. Rating is just an opinion about the creditworthiness of the entity and does not constitute a recommendation to buy, hold, or sell any security of the entity rated or to buy, hold, or sell the security rated, as the case may be. (Chapter III; 14-3-(x))
    2. Conflict of Interest
      1. The Rating Team or any of their family members have no interest in this rating (Chapter III; 12-2-(j))
      2. PACRA, the analysts involved in the rating process, and members of its rating committee and their family members do not have any conflict of interest relating to the rating done by them (Chapter III; 12-2-(e) & (k))
      3. The analyst is not a substantial shareholder of the customer being rated by PACRA [Annexure F; d-(ii)]
      4. Explanation: for the purpose of the above clause, the term "family members" shall include only those family members who are dependent on the analyst and members of the rating committee.
  2. Restrictions
    1. No director, officer, or employee of PACRA communicates the information acquired by him for use for rating purposes to any other person, except where required under law to do so. (Chapter III; 10-(5))
    2. PACRA does not disclose or discuss with outside parties or make improper use of the non-public information which has come to its knowledge during a business relationship with the customer. (Chapter III; 10-7-(d))
    3. PACRA does not make proposals or recommendations regarding the activities of rated entities that could impact a credit rating of the entity subject to rating. (Chapter III; 10-7-(k))
  3. Conduct of Business
    1. PACRA fulfills its obligations in a fair, efficient, transparent, and ethical manner and renders high standards of services in performing its functions and obligations. (Chapter III; 11-A-(a))
    2. PACRA uses due care in the preparation of this Rating Report. Our information has been obtained from sources we consider to be reliable, but its accuracy or completeness is not guaranteed. PACRA does not, in every instance, independently verify or validate information received in the rating process or in preparing this Rating Report. (Clause 11-(A)(p))
    3. PACRA prohibits its employees and analysts from soliciting money, gifts, or favors from anyone with whom PACRA conducts business. (Chapter III; 11-A-(q))
    4. PACRA ensures before the commencement of the rating process that an analyst or employee has not had a recent employment or other significant business or personal relationship with the rated entity that may cause or may be perceived as causing a conflict of interest. (Chapter III; 11-A-(r))
    5. PACRA maintains the principle of integrity in seeking rating business. (Chapter III; 11-A-(u))
    6. PACRA promptly investigates in the event of misconduct or a breach of the policies, procedures, and controls, and takes appropriate steps to rectify any weaknesses to prevent any recurrence, along with suitable punitive action against the responsible employee(s). (Chapter III; 11-B-(m))
  4. Independence & Conflict of Interest
    1. PACRA receives compensation from the entity being rated or any third party for the rating services it offers. The receipt of this compensation has no influence on PACRA’s opinions or other analytical processes. In all instances, PACRA is committed to preserving the objectivity, integrity, and independence of its ratings. Our relationship is governed by two distinct mandates: i) rating mandate - signed with the entity being rated or issuer of the debt instrument, and ii) fee mandate - signed with the payer, which can be different from the entity.
    2. PACRA does not provide consultancy/advisory services or other services to any of its customers or their associated companies and associated undertakings that are being rated or have been rated by it during the preceding three years, unless it has an adequate mechanism in place ensuring that the provision of such services does not lead to a conflict of interest situation with its rating activities. (Chapter III; 12-2-(d))
    3. PACRA discloses that no shareholder directly or indirectly holding 10% or more of the share capital of PACRA also holds directly or indirectly 10% or more of the share capital of the entity which is subject to rating or the entity which issued the instrument subject to rating by PACRA. (Chapter III; 12-2-(f))
    4. PACRA ensures that the rating assigned to an entity or instrument is not affected by the existence of a business relationship between PACRA and the entity or any other party, or the non-existence of such a relationship. (Chapter III; 12-2-(i))
    5. PACRA ensures that the analysts or any of their family members shall not buy, sell, or engage in any transaction in any security which falls in the analyst’s area of primary analytical responsibility. This clause, however, does not apply to investments in securities through collective investment schemes. (Chapter III; 12-2-(l))
    6. PACRA has established policies and procedures governing investments and trading in securities by its employees and for monitoring the same to prevent insider trading, market manipulation, or any other market abuse. (Chapter III; 11-B-(g))
  5. Monitoring and Review
    1. PACRA monitors all the outstanding ratings continuously, and any potential change therein due to any event associated with the issuer, the security arrangement, the industry, etc., is disseminated to the market immediately and in an effective manner after appropriate consultation with the entity/issuer. (Chapter III; 17-(a))
    2. PACRA reviews all the outstanding ratings periodically on an annual basis. Provided that public dissemination of annual review and in an instance of change in rating will be made. (Chapter III; 17-(b))
    3. PACRA initiates an immediate review of the outstanding rating upon becoming aware of any information that may reasonably be expected to result in downgrading of the rating. (Chapter III; 17-(c))
    4. PACRA engages with the issuer and the debt securities trustee to remain updated on all information pertaining to the rating of the entity/instrument. (Chapter III; 17-(d))
  6. Probability of Default
    1. PACRA’s Rating Scale reflects the expectation of credit risk. The highest rating has the lowest relative likelihood of default (i.e., probability). PACRA’s transition studies capture the historical performance behavior of a specific rating notch. Transition behavior of the assigned rating can be obtained from PACRA’s Transition Study available at our website. (www.pacra.com) However, the actual transition of rating may not follow the pattern observed in the past. (Chapter III; 14-3(f)(vii))
  7. Proprietary Information
    1. All information contained herein is considered proprietary by PACRA. Hence, none of the information in this document can be copied or otherwise reproduced, stored, or disseminated in whole or in part in any form or by any means whatsoever by any person without PACRA’s prior written consent.

Feb-26

www.pacra.com