Karachi: Jubilee Life Insurance Company Limited has retained its prestigious Insurer Financial Strength (IFS) rating of AA++ with a stable outlook, according to recent ratings by The Pakistan Credit Rating Agency Limited (PACRA). Despite a challenging market environment, the company's financial resilience and strategic partnerships have supported its rating stability.
According to a statement by The Pakistan Credit Rating Agency Limited, the IFS rating reflects Jubilee Life's robust financial ties with the Aga Khan Fund for Economic Development (AKFED) and its effective governance practices. The company benefits from the broad business expertise of its sponsors, which is further enhanced by AKFED nominees on its board. Jubilee Life offers a diverse array of products in both conventional and takaful markets, with individual life unit-linked products being the most prominent.
The life insurance sector in Pakistan is predominantly controlled by the public sector, which holds about 60% of the market share. The private sector, including Jubilee Life, accounts for the remaining 40%. The industry's gross premium written (GPW) stood at approximately PKR 181 billion during the first half of the calendar year 2024, marking a year-on-year decline of about 6%.
Despite these market challenges, Jubilee Life's investment income remains a strong support for its financial performance. The company's investment portfolio is mainly comprised of government securities, providing a stable source of income. However, high claims and surrenders due to economic uncertainties continue to impact its underwriting performance.
Looking ahead, Jubilee Life's sustained competitive positioning within the industry is crucial for maintaining its rating. The company is focusing on a strategic revamp to enhance core profitability and ensure a strong solvency profile, as indicated by its reserves. Maintaining adequate liquidity and risk management practices will be essential for its continued success in the dynamic insurance market.