AM Best Affirms Credit Ratings of Jubilee General Insurance Company Limited
AM Best has affirmed the Financial Strength Rating (FSR) of B (Fair) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bb” (Fair) of Jubilee General Insurance Company Limited (Jubilee) (Pakistan). The outlook of FSR is stable while the outlook of the Long-Term ICR is positive.
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).
Jubilee’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR) at year-end 2025. The company’s BCAR scores are projected to improve due to the de-risking of its investment portfolio throughout 2026. The company is targeting a reduction of its equity portfolio to approximately 30% of total investments, down from 43% at year-end 2025, with the proceeds from sales reinvested into fixed income securities. Jubilee’s capital requirements in BCAR are significantly weighted toward asset risk, and therefore its risk-adjusted capitalisation is highly sensitive to changes in asset allocation. Other partially offsetting factors include Jubilee’s high reinsurance dependence and its exposure to a non-rated reinsurance counterparty through mandatory cessions to the state-owned reinsurer in Pakistan.
