PACRA Maintains Entity Ratings of IGI Holdings Limited

The ratings reflect the established position of IGI Holdings Limited (“IGI Holdings” or “the Company”) as a diversified investment holding entity with a multi-sector portfolio. IGI Holdings functions as the apex holding platform for the Group’s financial sector interests, encompassing Life Insurance, Non-Life Insurance, and Brokerage operations. The Company’s asset base is predominantly concentrated in strategic equity holdings. These include three wholly owned subsidiaries IGI Investments (Private) Limited, IGI General Insurance Limited, and IGI Finex Securities Limited as well as an 83% interest in IGI Life Insurance Limited, a listed entity. The Company also holds a 6% interest in an associate; Packages Limited. Diversification within the portfolio is further strengthened through IGI Investments (Private) Limited, which operates as a dedicated investment holding arm. This layered structure enables operational leverage, strengthens inter-entity synergies, and enhances long-term portfolio stability and financial resilience. IGI Holdings maintains a comprehensive governance architecture for investment stewardship, supported by formalized policy frameworks governing portfolio monitoring, performance evaluation, capital allocation, and new investment appraisal. The investment mandate is led by the Group Chief Investment Officer, supplemented by a qualified in-house investment management team, ensuring disciplined execution of the Company’s long-term value creation strategy. As of 9MCY25, the long-term investment book remained stable, reflecting consistent portfolio performance and prudent asset management. During the period, IGI Holdings recorded approximately 17% growth in long-term investments. The Company’s income profile remains predominantly dividend-driven, with dividend receipts increasing by around 18% during 9MCY25. This uptick reflects improved profitability and strengthened payout capacity of the underlying investee companies, supported by favorable market conditions. Conversely, other income declined materially, attributable to compression in yields on interest-bearing assets following monetary easing. The underlying entities within the IGI Holdings structure have exhibited sustained operational progress, reinforcing the effectiveness of the Group’s strategic oversight and investment discipline. Free cash flow generation remained constrained due to the outlay for the acquisition of 6% shareholding in Packages Limited, purchased from a foreign shareholder. To bridge liquidity requirements, the Company deployed incremental short-term borrowings and optimized working capital utilization through enhanced cash management practices. Looking ahead, further institutionalization of the investment framework, particularly through the development of structured short-term investment policies, is expected to strengthen liquidity buffers and improve tactical financial flexibility. Continued sponsor support remains a key rating driver, underpinning the Company’s creditworthiness and its ability to sustain long-term growth momentum.
Ratings depend upon the existing and new strategic investments along with investment and governance framework. Establishing an efficient system to monitor performance and offer comprehensive guidance to its subsidiaries, coupled with diversifying investments, would positively impact the rating of IGI Holdings Limited.

About the Entity
IGI Holdings Limited, incorporated as a public limited company in 1953, serves as the investment holding company for the group. The company underwent a restructuring in 2017, resulting in the formation of wholly owned subsidiaries: IGI General Insurance Limited, IGI Finex Securities Limited, and IGI Investments (Pvt.) Limited. Approximately 39% of IGI Holdings’ ownership rests with Packages Limited, the Industrial Technical and Educational Institute, and the Babar Ali Foundation, while around 34% is held by members of the Ali family as of 6MCY25. Of the remaining shareholding, about 7% is owned by financial institutions, and the remaining roughly 20% constitutes the free float. Syed Babar Ali serves as Chairman of the Board, while Syed Hyder Ali is the CEO of the company.