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The Pakistan Credit Rating Agency Limited
Press Release

Date
31-May-19

Analyst
Faraan Taimoor
faraan.taimoor@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains IFS Rating of Jubilee Insurance Company

Rating Type IFS
Current
(31-May-19)
Previous
(06-Dec-18)
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 company has heightened it's growth through underwriting. The persistent investment income augers well for the bottom line of the company giving it a strong cushion. The rating recognizes the management's 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 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 and consequent profitability from core business.
The rating is dependent upon sustained competitiveness of the company with improvement in underwriting profitability. Sustaining the market share is crucial with consequent improvement in the liquidity. Meanwhile harnessing of claims management process is essential.

About the Entity
Jubilee General, incorporated 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 (58%),Habib Bank Limited (20%), 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 2005, 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.