PACRA Maintains IFS Rating of State Life Insurance Corporation of Pakistan

The assigned ratings reflect State Life Insurance Corporation of Pakistan (“State Life” or the "Corporation” )'s unparalleled market leadership as the sole state-owned life insurer, its exceptionally large and well-diversified investment portfolio anchored predominantly in government securities, and sustained growth in premium income. The Corporation’s ownership by the Government of Pakistan, which acts as a sovereign backstop, further reinforces its rating at the highest level. During the period under review, the renewal premium base strengthened, indicating improved policy persistency, while first-year premiums also recorded growth, reflecting continued business generation momentum. Pakistan’s life insurance industry sustained its growth trajectory during CY25; gross premium grew by 13.8% to PKR 496.9bln (CY24: PKR 436.7bln). The operating environment reflected easing inflationary pressures and a declining interest rate cycle, which influenced both product demand and investment yields across the sector. SLIC maintained its leadership position with approximately 58.2% share of industry GPW, comprising approximately 1,357 area offices, 302 sector offices, and over 11,000 agency offices spread across more than 50 zones and 14 regions. In contrast, private insurers (including Takaful operators) increased their combined share to 41.4% (CY24: 38.7%). SLIC’s gross premium of PKR 289.3mln remains the largest single premium pool among life insurers in Pakistan. The investment portfolio expanded to PKR 2,114.4bln as of CY25 (CY24: PKR 1829bln), reflecting a year-on-year growth of 15.6%. The portfolio remains heavily concentrated in government securities of PKR 1,549.3mln (CY24: PKR 1,334.3mln), classified as held-to-maturity and carried at amortized cost, with effective yields ranging between 12.38% and 16.23%, thereby ensuring stable and predictable investment income to support long-term policyholder obligations.
Profitability is primarily driven by a combination of premium revenues and recurring investment income generated from the Corporation's substantial investment portfolio. During CY25, net premium revenue increased to PKR 288.4bln (CY24: PKR 264.4bln), reflecting growth of 9.1%. The Corporation's earnings profile continues to benefit from stable investment returns on government securities, while prudent claims management and operating efficiencies support overall financial performance. The claims-paying ability of the Corporation remains strong, supported by its sizeable liquid investments and robust asset base. The total equity base of the Corporation stood at PKR 66bln as of CY25.
Going forward, sustained growth in premium revenues, maintenance of policy persistency, preservation of the quality and liquidity of the investment portfolio, continued profitability through both underwriting and investment operations, and retention of the Corporation's strong market position will remain important rating considerations.

About the Entity
State Life Insurance Corporation of Pakistan was incorporated on November 1, 1972 under the Life Insurance Nationalization Order, 1972 (LINO). The Corporation is wholly owned by the Government of Pakistan, with the Ministry of Commerce exercising ownership authority. State Life's Board is chaired by Mr. Saleem Zia, while Mr. Shoaib Javed Hussain serves as Chief Executive Officer, supported by a team of seasoned professionals.