Press Release

VIS Reaffirms IFS Rating of Chubb Insurance Pakistan Limited

Karachi, December 31, 2020: VIS Credit Rating Company Limited (VIS) has reaffirmed the Insurer Financial Strength rating of Chubb Insurance Pakistan Limited (CIPL) at ‘AA’ (Double A). The rating signifies very high capacity to meet policyholder and contract obligations. Risk is considered modest but may vary slightly over time due to economic conditions. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on December 24, 2019.

CIPL operates as a wholly owned subsidiary of Chubb INA International Holdings Limited (U.S.A). The company follows a very selective underwriting strategy. CIPL’s primary competitive advantage is the sizable treaty capacities arranged with associate Group company; as the counterparty, in this case is highly rated on the international scale, it allows CIPL to underwrite complex and specialized risks across the property line. The assigned rating derives strength from the sponsor profile of Chubb Group, representing the world’s largest property and casualty insurers with operations in 54 countries. The rating also reflects the technical and financial assistance provided to CIPL.

The rating drives comfort from growth in business volume, better underwriting results and decrease in loss ratio. Moreover, recurring investment income has supported the bottom line over the years. While capitalization is supported by relatively low operating leverage, increase in financial leverage in 9MFY20 was mainly due to increase in unearned premium reserves as a result of higher business volumes and major renewals in third quarter. Liquidity is considered sound as reflected by adequate liquid assets in relation to technical reserves. Lately, an uptick in insurance debt was witnessed; albeit the management attributes this to growth in premium receivable within agreed contractual terms. The aging profile of the insurance debt is considered sound. Rating remains dependent on sustained growth in business while maintaining combined ratio, leverage and profitability metrics in line with rated peers.

For further information on this rating announcement, please contact Ms. Tayyaba Ijaz at 042-35723411-13 (Ext. 8004) and/or the undersigned at 021-35311861-66 (Ext. 306) or email at

Faryal Ahmad Faheem
Deputy CEO

Applicable Rating Criteria: General Insurance (November 2019)

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 2020 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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