Pakistan Credit Rating Agency maintains insurer financial strength rating of Jubilee General Insurance Company Limited: Outlook Is Positive

Lahore: The Pakistan Credit Rating Agency (PACRA) has maintained the IFS rating of Jubilee General Insurance Company Limited (Jubilee) [formerly New Jubilee Insurance Company Limited] at “AA” (Double A) with positive outlook.

The rating denotes a very strong capacity of the company to meet policyholder and contract obligations. At the same time, risk factors are considered modest, and the impact of any adverse business and economic factors is expected to be very limited.

The rating reflects Jubilee’s robust risk management framework facilitating the company in sustaining sound underwriting practices despite volatile socio-economic fundamentals. The rating recognizes the management’s persistent efforts of penetrating relatively untapped segments through innovative products, also reflected in its relatively more diverse premium mix compared to peers.

Moreover, the rating takes into account Jubilee General’s sound equity base and sufficient liquidity engendering strong risk absorption capacity. The ability of key sponsor of the company, AKDN group, to foster synergies amongst its financial institutions operating in Pakistan – HBL, Jubilee General, and Jubilee Life – and in the group’s different insurance companies across the globe, lately branded as “Jubilee”, is also a key rating factor.

The positive outlook to the rating takes into account Jubilee General’s improving competitive position, an outcome of management’s focused strategy to generate profitability through prudent underwriting, without impairing the growth momentum.

A more structured approach to claims handling system, thereby reducing the volume of outstanding claims, would remain important for the rating elevation. At the same time, advancement in the IT infrastructure to make it real time and refinement in the investment management framework would have positive connotation for the rating.

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