Islamabad: The Pakistan Credit Rating Agency has reaffirmed the highest insurer financial strength rating of AA-plus (IFS) with a stable outlook for The United Insurance Company of Pakistan Limited, underscoring continued confidence in the non-life insurer.
Pakistani-American Doctors Launch HOPPE Summit to Advance Global Cancer Care
The rating, unchanged since September 2025, reflects the company’s strong capacity to meet policyholder obligations. An insurer financial strength (IFS) rating is a key benchmark used by corporate clients and reinsurers when selecting insurance partners.
The affirmation comes at a time when Pakistan’s insurance sector faces pressure. Industry-wide gross premium written stood at around Rs170 billion in the first nine months of 2025, slightly lower than Rs171 billion in the same period a year earlier. Underwriting profits declined sharply by nearly 50% to Rs4.8 billion, compared to Rs9.6 billion previously.
PACRA noted that the drop in earnings was largely due to a one-off accounting reversal of investment gains recorded last year, rather than a fundamental weakening of the sector.
Despite the challenging environment, United Insurance strengthened its financial position, with its equity base rising to Rs8.4 billion from Rs6.4 billion. Net insurance premium remained stable at Rs6.3 billion.
The agency highlighted the company’s conservative investment strategy — focused on government securities and bank deposits — along with strong reinsurance arrangements with international partners, as key factors supporting the rating.
Looking ahead, United Insurance plans to expand into real estate and life insurance segments. PACRA said the successful execution of these diversification strategies will be important for maintaining the company’s current rating trajectory.
