UIC Retains AA+ Rating as VIS Reaffirms Financial Strength

ISLAMABAD, October 3, 2026: VIS Credit Rating Company has reaffirmed the financial strength rating of United Insurance Company of Pakistan (UIC) at AA+ with a stable outlook, indicating a very high capacity to meet policyholder claims.

The rating comes from VIS’s Insurer Financial Strength scale. The scale assesses an insurer’s ability to meet its policy and contractual obligations.

VIS said UIC faces very low risk factors. It also expects adverse business and economic conditions to have a limited impact on the company. The previous rating action took place on September 26, 2025.

VIS Highlights UIC’s Financial Position

VIS attributed the rating to UIC’s established market presence, adequate underwriting performance and strong panel of reinsurers.

Reinsurers share the financial risk of large insurance claims. VIS said UIC maintains comfortable capitalisation and substantial reinsurance capacity.

The rating agency also noted that UIC’s net claims ratio remains low. Its combined ratio, which includes claims and operating expenses, also remains at a low level.

However, higher underwriting expenses have placed some pressure on the company, according to VIS.

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Rating Supports Policyholder Confidence

The reaffirmed rating provides an indication of UIC’s capacity to meet valid policy claims.

Businesses using fire, marine, motor, crop and miscellaneous insurance can also benefit from UIC’s reinsurance arrangements. VIS noted that the company places substantial capacity with established reinsurers.

UIC was incorporated in 1959. It has also operated a Window Takaful business since August 18, 2014, following approval from the Securities and Exchange Commission of Pakistan (SECP).

Pakistan’s Insurance Market Has Growth Potential

The rating comes as insurance penetration remains relatively low in Pakistan.

Mian M. A. Shahid, Group Chairman of United International Group (UIG), said insurance penetration stands at around 0.7% of gross domestic product.

He also said annual insurance spending per person is about $12. According to Shahid, Pakistan has 44 insurance companies, including 36 conventional insurers, seven takaful operators and one reinsurance company.

Around 10.4 million insurance policies are currently in force, he said.

Shahid said the figures indicate significant room for expansion in Pakistan’s insurance market.

Future Rating Depends on Key Indicators

VIS said future rating considerations will include stronger premium growth, improved liquidity and effective collections.

The agency will also monitor capital adequacy, underwriting discipline and risk management.

These factors will remain important as Pakistan’s insurance industry responds to changing regulatory and operating conditions.