PACRA Upgrades IFS Rating of The Pakistan General Insurance Company Limited

The Pakistan General Insurance Company Limited ("PGI" or "the Company") has taken significant steps over the last couple of months, since the first rating was announced (October 04, 2025). The Company had one of the prime assets of the sponsors revalued. It is an industrial/commercial property located at Jalalpur Shujabad Road, Multan (October 17, 2025). The property is valued at PKR 936mln. The objective of this exercise was to boost the capital of the Company. Consequently, PGI prepared and submitted an application (dated February 16, 2026) to SECP under the relevant provisions of the laws governing rights issues, seeking approval for the proposed further issue of shares by way of otherwise than right. The otherwise than right issue would not impact the current shareholding, but would consolidate it with the current sponsors. The management has shown that the application is duly received. Additionally, the management has acquired reinsurance treaties with Saudi Re (Leader) (rated A-), Singapore Re (rated AA-), PVI obo (A-), Oman Re (BBB), Tunis Re (B), done through Lockton (Mena) Limited. Tunis Re has only 5%. These are both motor and non-motor XoL lines. The Company has also undertaken to accomplish rights issue, raising further PKR 250mln capital to boost the liquidity of the Company. The management is pursuing the bank enlistment process, where a few banks are at different stages of approval. The management tier has also been strengthened and they are committed to achieving the disclosed targets and parameters. Successful achievement of these will remain essential to the upgraded rating. The Company also reported the full-year financial statements, along with the audited report and the 1st quarterly financial statements for 2026. These numbers are expected to improve, as per the projections of the Company. During CY25, Gross Written Premium increased to PKR 237.6mln (CY24: PKR 24.0mln), while Net Insurance Premium rose to PKR 135.4mln (CY24: PKR 7.5mln). Underwriting results turned positive at PKR 49.7mln (CY24: loss of PKR 16.6mln), supported by a contained claims experience and disciplined management of operating costs, reflecting improved underwriting discipline overall. The Company closed the year with a profit after tax of PKR 28.4mln (CY24: PKR 31.8mln, which had been boosted by a one-off other-income item). The Company's equity base strengthened to PKR 586.5mln in CY25 from PKR 357.8mln in CY24, reflecting a significant year-on-year increase. Further equity enhancement is planned as disclosed above.
The rating remains dependent on the achievement of the aforementioned initiatives. Scaling up in terms of underwriting and profitability is important. Liquidity needs to be enhanced.

About the Entity
The Pakistan General Insurance Company Limited ('PGI' or 'the Company'), incorporated in Jul'47, is listed on PSX. The Company is primarily (84.7%) owned by Mr. Shahzad Habib and his associates/family, while the rest is free float, held by the general public (15.3%). The Company's Board comprises seven members, including three Independent Directors. The Board is chaired by Mr. Muhammad Shahzad Habib. Mr. Mir Babar Ali heads the Company as the CEO, with Mr. Ali Shahzad managing the operations as the Chief Operating Officer. All Board members and management personnel are experienced professionals.