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  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
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  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
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  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

AM Best Revises Issuer Credit Rating Outlook to Positive for Jubilee General Insurance Company Limited

AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B (Fair) and the Long-Term ICR of “bb” (Fair) of Jubilee General Insurance Company Limited (Jubilee) (Pakistan). The outlook of the FSR is stable.

These Credit Ratings (ratings) reflect Jubilee’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and marginal enterprise risk management (ERM).

The revision of the Long-Term ICR outlook to positive from stable reflects improvements in the company’s balance sheet strength fundamentals, notably through increased risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), underpinned by good earnings retention. In addition, the rating action considers improvements in the economic, political and financial system risks in Pakistan.

Jubilee’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by BCAR (at year-end 2024). Future growth of the company’s underwriting portfolio is expected to be supported adequately by internal capital generation. However, the company’s risk-adjusted capitalisation remains sensitive to changes in asset risk, which is the primary driver of required capital. Other partially offsetting rating factors include the company’s high dependence on reinsurance and its exposure to a non-rated reinsurance counterparty through mandatory cessions to the state-owned reinsurer in Pakistan.

Jubilee has a history of strong earnings, with a five-year (2020-2024) weighted average return on equity of 19.3%. Underwriting performance has been resilient over this period, with a weighted average combined ratio of 94.3%. Investment returns remain the core driver of operating performance, with Jubilee generating a weighted average net investment yield, including capital gains, of 14.3% over the same five-year period.

As the third-largest non-life insurer in Pakistan, Jubilee holds a solid competitive position within its domestic market. The company writes a diversified insurance portfolio, offering conventional and takaful products principally to commercial customers. The company’s premium income increased by 18.5% in 2024, which was ahead of the market growth. This was supported by inflation-driven rate increases and higher sums insured. However, writing PKR 23.1 billion (USD 83 million) of gross premium in 2024, Jubilee remains relatively small on a global scale.

AM Best views Jubilee’s ERM as marginal given the size and complexity of its operations. The company’s risk profile remains exposed to Pakistan’s elevated economic, political and financial system risks. While AM Best notes Jubilee’s historical operational resilience to country risk factors, risk management challenges are presented by its concentration of business and assets in Pakistan.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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