PACRA Maintains IFS Rating of IGI Life Insurance Limited

The life insurance sector in Pakistan remains largely dominated by public-sector insurers, accounting for ~61% of the market as of Dec-24, with private companies covering the remaining ~39%. During CY24, the industry recorded a Gross Premium Written (GPW) of ~PKR 434 bln, marking a healthy ~7% YoY increase from ~PKR 406bln in CY23. Net claims edged up slightly to ~PKR 374bln (from ~PKR 367bln), reflecting sustained claims activity. The sector’s profitability gathered support from a robust investment income of ~PKR 467bln, up ~60% from ~PKR 292bln, driving Profit After Tax (PAT) to ~PKR 23bln, up from ~PKR 20bln in the previous year. The industry's total investment portfolio also expanded, reaching ~PKR 2,518bln from ~PKR 2,021bln YoY. The overall outlook remains stable, underpinned by favorable underwriting metrics and continued strength in investment returns.
IGI Life Insurance Limited (“IGI Life” or “the Company”) benefits from its affiliation with the well established Packages Group and operates under a strong corporate governance framework. Over years, the Company has actively optimized its portfolio by scaling down loss making lines, allowing it to build underwriting surpluses and settle claims efficiently. With persistency rates at ~63% for first-year and ~74% for second-year policies, IGI Life demonstrates a solid level of policyholder retention. In CY24, Gross Premium Written (GPW) surged by ~69%, backed by effective distribution through bancassurance and agency channels. The Company delivered profits from core operations, bolstering its results while maintaining a prudent investment mix, about two-thirds of which is allocated to government securities, supporting the Company's bottom line. Financially, IGI Life maintains a strong risk-absorption capacity, supported by ample liquidity and a solid equity base. The Company's profitability benefits from investment income and disciplined underwriting, anchored by its stable capital structure. The ongoing performance of its Vitality wellness program continues to enhance policyholder engagement and underwriting outcomes. Together, these strengths provide confidence in its resilience and future prospects.
The rating is dependent upon sustained improvement in the business and financial risk profile, in line with its relative positioning. Concurrently, improved equity and liquidity profile should be maintained, to cushion the policyholder's liabilities. The performance of 'Vitality' remains essential.

About the Entity
IGI Life Insurance Limited (‘IGI Life’ or ‘the Company’), a public listed company, listed on the Pakistan Stock Exchange, started its operations in May-95. The Company operates a life insurance company.
IGI Holdings holds the majority stake in the Company (~82.69%), whereas the remaining shareholding is distributed between a consortium of institutions, individuals and directors & related parties. IGI Life’s Board is chaired by Mr. Shamim Ahmad Khan, while Mr. Ali Nadim is the CEO of the Company. He is assisted by a team of experienced professionals.