PACRA assigns Pension Fund Manager Rating to State Life Insurance Corporation of Pakistan

State Life Insurance Corporation of Pakistan (“State Life” or the "Corporation”), a Government of Pakistan (GoP)–owned life insurer, maintains strong market leadership with a dominant market share of ~61% in the insurance sector. Its extensive and effective agency network ensures deep market penetration, while a broad and innovative product suite, supported by operational excellence, fosters strong customer confidence, reflected in second-year persistency of ~84% and renewal persistency of ~90%. During 6MCY25, the Corporation’s financial profile remained robust, with a diversified and healthy investment portfolio reported at ~PKR 1,891bln (CY24: ~PKR 1,829bln), primarily comprising government securities of ~PKR 1,416bln (CY24: ~PKR 1,334bln), underpinned by stable income streams and supported by the GoP guarantee on policyholders’ liabilities. The seasoned management team further reinforces its credit profile. State Life currently holds an entity rating of AAA (ifs) from PACRA. In addition to its core insurance and family takaful operations, State Life has expanded its footprint into the retirement savings domain. The Corporation has secured a Pension Fund Manager (PFM) license from the SECP, making it one of the very few institutions outside the AMC sector to enter this space. State Life was registered as a PFM in Apr’25, and the launch of its pension fund is expected soon. With an expected fund size of around PKR 6bln, the Corporation offers two fund types: the State Life Retirement Savings Fund (SLRSF) and the State Life Islamic Retirement Savings Fund (SLIRSF). Both funds will be offering returns in line with industry standards as stated by the regulator. The PFM industry recorded AUMs of ~PKR 105.6bln as of Jun’25, with growth expected to accelerate under favorable government reforms. Punjab and Khyber Pakhtunkhwa are transitioning from Defined Benefit Schemes to Defined Contribution Schemes, i.e, Voluntary Pension Schemes (VPS), introducing regulatory frameworks for PFMs to manage new government employees’ contributions. In alignment, State Life plans to introduce province-focused pension funds and expand its presence in this evolving market. To ensure robust governance and operational efficiency, the Digital Custodian Company Limited (DCC) has been appointed as Trustee, while IT Minds will provide back-office processing, including digital services, under finalized agreements. These arrangements support operational integration and compliance with digital onboarding requirements. Initially, Investor outreach will be facilitated through the Corporation’s Group and Pension Division, which will offer education, guidance, and reporting. Investments will be accessible via the IT Minds platform and a dedicated mobile application currently under development. State Life’s nationwide footprint provides a strong platform for expanding VPS outreach. Supported by comprehensive risk management, underwriting, legal, and internal audit functions, the Corporation ensures strong internal controls and regulatory compliance. Leveraging its established insurance expertise and governance strengths, State Life aims to effectively establish and scale its presence in the PFM sector. During 6MCY25, State Life maintained a strong equity base, reported at ~PKR 60.3bln (CY24: ~PKR 53bln).
The “AM1(p)” Pension Fund Manager Rating reflects the Corporation’s strong market position and consistent performance. Maintaining its leadership in the life insurance sector, supported by ongoing strategic diversification and growth initiatives, remains key. Going forward, the timely and successful launch of PFM operations and the attainment of a meaningful fund size will be critical to reinforcing the Corporation’s standing in the pension fund management market.

About the Entity
State Life was incorporated in Nov-72. The Corporation is Pakistan's largest life insurer, operating through an extensive domestic sales network and maintaining a presence in the Middle East. The Corporation is governed by the GoP through the Federal Ministry of Commerce. The Board is now led by the newly appointed Chairperson, Mr. Saleem Zia, while Mr. Shoaib Javed Hussain is the CEO.