Press Release

VIS Reaffirms IFS Rating of Security General Insurance Company Limited

Karachi, December 4, 2019: VIS Credit Rating Company Limited VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of Security General Insurance Company Limited (SGICL) at ‘AA’ (Double A). The IFS rating of ‘AA’ denotes very high capacity of meeting policy holder and contractual obligations. Moreover, the risk is modest, but may vary slightly with possible changes in economic conditions. Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on December 28, 2018.

Ratings assigned to SGICL take into account its association with a large diversified conglomerate “Nishat Group” having business interests in banking, textile, cement, power generation, real estate and paper products. Ratings draw strength from growth in business volumes, improved underwriting results and conservative risk appetite leading to cautious business selection. The sound capitalization and leverage indicators exhibiting strong loss absorption capacity remain the key rating driver. Credit risk emanating from reinsurance panel selection remains sound with all reinsurers, except one, rated in category ‘A’ or higher. The ratings derive strength from sizeable recurring dividend income emanating from investment in blue chip companies. The underwriting results of the company have improved on a timeline basis primarily as a function of increase in overall scale of operations. Further, liquidity profile is considered adequate reflected by sizeable liquid assets maintained in relation to borrowings and technical reserves. However, insurance debt in relation to gross premium needs to remain within the peer group parameters.

For further information on this rating announcement, please contact Maham Qasim at 042-35723411-13 (Ext: 8005) or the undersigned at 021-35311861-70 (Ext: 201) or email at

Javed Callea

Applicable rating criterion: General Insurance (March 2017)

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2019 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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