The Pakistan Credit Rating Agency Limited
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Nauman Mustafa

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PACRA Maintains IFS Rating of Jubilee General Insurance Company Limited

Rating Type IFS
Action Maintain Maintain
Long Term AA+ AA+
Short Term - -
Outlook Stable Stable
Rating Watch - -

The rating reflects Jubilee General's robust risk management framework facilitating the company in sustaining sound underwriting performance. The rating recognizes the management's persistent efforts of penetrating relatively untapped segments, reflected in its diverse premium mix . Jubilee General has sound equity base and sufficient liquidity engendering strong risk absorption capacity. The company's efforts for improving the overall quality of control environment are bearing fruits. The ability of key sponsor, Aga Khan Development Network (AKDN), to foster synergies amongst its financial institutions operating in Pakistan - HBL, Jubilee General, and Jubilee Life - and in the group's different insurance companies across the globe, is also a consideration. The business strategy, going forward, is focused on improving its market position which is a challenge giving muted growth lately.
The rating i s dependent upon sustained competitiveness of the company with improvement in underwriting profitability. Sustaining the market share is crucial with consequent improvement in the liquididy.

About the Entity
Jubilee General, incorpo rated in 1953, is the third largest general insurance company in Pakistan and is listed on Pakistan Stock Exchanges. Significant shareholders of Jubilee include Aga Khan Development Network (57%) including Habib Bank Limited (18%), and Hashoo Group (16%). AKDN represents a group of development agencies having ownership stake in commercial ventures operating in sectors like insurance, banking,hotels, education, and tourism. HBL is the country's largest private sector bank and is rated 'AAA'.

Jubilee General's BoD comprises nine members including the CEO. The Chairman of the board, Mr. Towfiq H. Chinoy, is a distinguished industrialist. Mr. Tahir Ahmed, the company's MD since July-05, is a graduate engineer, MBA and a Chartered Insurer, with extensive experience in the field of insurance. He is supported by a team of experienced professionals, long associated with the company.

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.