Press Release

VIS Reaffirms IFS Rating of IGI General Insurance Limited

Karachi, December 06, 2019: VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength (IFS) rating of ‘AA’ (Double A) to IGI General Insurance Ltd. (IGI General). The rating signifies very high capacity to meet policyholders’ and contractual obligations. Risk is considered modest but may vary slightly over time due to business /economic conditions. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on September 13, 2018.

The assigned ratings to IGI general incorporate company’s improving market position with market share increasing to 5.9% (2018: 5.4%; 2017: 3.9%) during 1HCY19. Ratings also reflect the company’s sound reinsurance program, conservative investment profile, sustained underwriting performance, sound liquidity indicators and adequate capitalization profile. Ratings also take into account strong sponsor profile with IGI being a wholly owned subsidiary of IGI Holdings Limited (IGIHL). IGIHL belongs to a prominent business conglomerate, Packages Group that has diversified presence and strong financial profile. Ratings remain dependent on continued improvement in market share, sustaining underwriting performance and rationalizing leverage indicators and insurance debt in relation to gross premiums with both indicators trending upwards.

Gross premiums have depicted healthy growth during 2018 and in the ongoing year. Growth in gross premiums has been broad based with fire and motor segment being the key growth drivers. Underwriting performance has been maintained with combined ratio hovering around 90%. Significant growth in investment income has supported healthy profitability growth. Assessment of liquidity profile of the company draws support from strong liquid asset coverage of liabilities, manageable level of insurance debt and growing cash flows. Overall capitalization indicators are adequate with the Company having significant buffer over minimum solvency requirement. While remaining within manageable levels, leverage indicators have increased on a timeline basis as growth in business volumes has outpaced equity growth where capitalization support to retain risk profile is needed in the growth mode.

For further information on this rating announcement, please contact Mr. Talha Iqbal (Ext: 213) or the undersigned (Ext: 207) at (021) 35311861-66 or email at

Jamal Abbas Zaidi

Applicable Rating Criteria: General Insurance (September 2016)

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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