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Lahore, November 06, 2020 (PPI-OT): The rating reflects Jubilee General’s robust risk management framework facilitating the company in sustaining sound profitability. The persistent investment income augers well for the bottom line of the company giving it a strong cushion though underwriting profitability needs to be enhanced. The rating recognizes the management’s efforts of penetrating relatively untapped segments, reflected in its diverse premium mix. Jubilee General has sound equity base and sufficient liquidity engendering strong risk absorption capacity.
The ability of key sponsor, Aga Khan Development Network (AKDN), 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, is also a consideration. The business strategy, going forward, is focused on improving its market position and consequent profitability from core business.
Prior to COVID-19, the general insurance industry witnessed a growth of 11% YoY. The current pandemic affected the volumes, which led to a contraction in the growth. However, volumes have picked up post-June 2020 amidst increase in economic activities throughout the country. Upsurge in auto sales and health products has been pivotal.
Underwriting profitability i.e. core business has been cushioned through reduced management expenses while innovative products are being envisaged. The liquid investment book is almost two third diverted towards fixed term avenues, while the rest is deployed in equities. The rating is dependent upon sustained competitiveness of the company while upholding the profitability.
For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com
The post PACRA Maintains IFS Rating of Jubilee General Insurance Limited appeared first on Business News Pakistan.