PACRA Maintains IFS Ratings of Jubilee General Insurance Company Limited

Jubilee General Insurance Company Limited (‘Jubilee Insurance’ or ‘the Company’) holds a considerable standing in Pakistan's general insurance industry. The Company draws strength from Aga Khan Development Network (‘AKDN'), holding a strong presence in the financial industry, through Habib Bank Limited, Jubilee Life Insurance Company Limited, and Jubilee Insurance. A robust governance framework, well aligned with the managerial practices, supports the Company's overall operations; also, it bodes well for the IFS rating. The Company holds a robust business profile with Gross Premium Written (GPW) trickling in majorly (~88%) from conventional operations, with a support of ~12% from window Takaful operations. Within each line of operations, fire and property (~40%) remains the main GPW generating segment, followed by miscellaneous (~19%), accident & health (~15%), motor (~13%), and marine (~9%). GPW's growth of ~18% is mainly driven by conventional (~19%), followed by window Takaful (~17%) operations. This growth remains a factor of increase in the premium pricing, with a modest volume of new policies flowing in. The Company's bottom line remains strong, supported by stable underwriting performance (~PKR 944mln) and considerably strong investment returns (~PKR 4.4bln). The Company's investment strategy (portfolio size of ~PKR 33.3bln) remains inclined to secure avenues, i.e., government securities, along with a diverse mix of blue-chip equity securities. Going forward, the recovery of economic activities and improvements in both the micro and macroeconomic landscape are expected to positively impact the Company's overall performance. On the financial risk front, Jubilee Insurance is supported by substantial risk absorption capacity, underpinned by sufficient liquidity. Additionally, the Company has demonstrated financial stability through consistent dividend payments. Additionally, the presence of internationally recognized and highly rated reinsurers provides confidence in the Company's ability to repay its financial obligations, if any.
Sustainability of business segments and efficient expense management remain imperative to the financial performance. Moreover, the investment book's performance, which is directed towards high-growth avenues, is crucial for the rating. The rating remains dependent upon the Company's sustained market position and benefiting from the sound Group profile.

About the Entity
Jubilee General Insurance Company Limited ("Jubilee General" or "the Company") was incorporated in May-53 as a publicly listed company. Principal activity involves managing non-life insurance through conventional and window Takaful operations in Fire and Property, Marine and Aviation, Accident and Health, and Motor segments. A major stake of the Company lies with the Aga Khan Development Network and the Hashwani Group (~58.58%). The Company's Board is chaired by Mr. Akabarali Pesnani. Lately, Mr. Azfar Arshad has taken up the charge as the CEO. He has been associated with the Company for two decades. They are assisted by a team of experienced professionals.