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AM Best Affirms Credit Ratings of Jubilee General Insurance Company Limited

·3-min read

AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of "bbb-" of Jubilee General Insurance Company Limited (Jubilee) (Pakistan). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Jubilee’s balance sheet strength, which AM Best categorises as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

Jubilee’s balance sheet strength is underpinned by very strong risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects prospective risk-adjusted capitalisation to remain at least at a very strong level over the medium term, supported by continued robust internal capital generation. The balance sheet strength further benefits from good levels of liquidity to support operations. Offsetting factors to the balance sheet strength assessment include the concentration of the company’s investments in Pakistan, in particular, elevated exposure to domestic equities, which exposes the balance sheet to potential volatility. Furthermore, mandatory cessions in Pakistan leave the company exposed to credit risk arising from the non-rated state-owned reinsurer.

Jubilee has a track record of strong operating performance, with a five-year weighted average return on equity of 16.5% (2015-2019). Over the same period, the company delivered a robust weighted average combined ratio of 91.6%, demonstrative of good underwriting discipline. Despite strong technical results, the company’s balance of earnings continues to be heavily weighted toward investment income. Jubilee’s operating earnings have remained broadly stable in recent years, with the company achieving profit before tax of PKR 1.7 billion (USD 11.2 million) in 2019, compared with PKR 1.6 billion (USD 11.8 million) in 2018.

As Pakistan’s third-largest non-life insurer, Jubilee maintains a good competitive position in its domestic market. The company writes a diversified portfolio, offering conventional and takaful products, principally to commercial customers. Jubilee continues to seek additional market share through developing its retail operations, which are expected to benefit from the company’s innovation initiatives and development of online platforms. Jubilee’s online distribution capabilities have proved a competitive advantage in the backdrop of challenging conditions faced in 2020.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Emily Thompson
Financial Analyst
+44 20 7397 0291

Alex Rafferty, ACA
Associate Director, Analytics
+44 20 7397 0312

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644