Press Release

JCR-VIS Reaffirms IFS Rating of Jubilee General Insurance Company Limited


Karachi, December 30, 2014: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of Jubilee General Insurance Company Limited (JGI) at ‘AA+’ (Double A Plus) with a ‘Stable’ Outlook. The previous rating action was announced on December 12, 2013.

The assigned rating derives strength from JGI’s strong franchise established over a period of 60 years. The company has maintained its position as the third largest general insurance company in the private sector. The rating also incorporates JGI’s robust liquidity profile, stable investment income and the pace of internal capital generation, which has allowed the company to maintain sound capitalization level while pursuing its growth objectives.
The company has a balanced business mix; ability to underwrite risks is supported by adequate reinsurance arrangements with reputable reinsurers in addition to sound capitalization indicators. In line with business growth, management has negotiated capacity enhancements in major business segments while keeping net retention at manageable levels. The management is endeavoring to diversify business by way of penetration in the retail segment and initiation of takaful window operations. Growth momentum in business volumes is expected to be supported by these initiatives.
The company has depicted continued growth in business volumes on a year on year basis. Overall results from underwriting operations have remained positive despite major claims in some business segments and the resultant reinstatements on treaties. The bottom line was also strong as the company continues to generate steady stream of income from a sizeable fixed income portfolio. Moreover, gain on listed equities was healthy as the stock market remained buoyant. Both credit and market risk arising from the portfolio is considered manageable.
There were some changes at senior management level including appointment of key executives. The senior management remains committed to continuous improvement in the control environment and operational efficiency.
For further information on this rating announcement, please contact Mr. Abdur Rahim, ACII (Ext: 508) or Ms. Sobia Maqbool, CFA (Ext: 604) at 021-35311861-71 (10 lines) or fax to 021-35311873.

Jamal Abbas Zaidi
Deputy CEO

Applicable Rating Criteria: General Insurance (Nov 2003)

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 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 2014 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited