AM Best Affirms Credit Ratings of Jubilee General Insurance Company Limited

AUGUST 21, 2026 11:01 AM (EDT)

AM Best Affirms Credit Ratings of Jubilee General Insurance Company Limited

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FOR IMMEDIATE RELEASE

LONDON - AUGUST 21, 2026 11:01 AM (EDT)
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.

Jubilee has a history of strong earnings, with a five-year (2021-2025) weighted average return on equity of 19.5%. Underwriting performance has been resilient over this period, with a five-year weighted average combined ratio of 95.4%. The company experienced a poor underwriting year in 2025, evidenced by a 101.3% combined ratio, impacted by large flood losses and fire events. AM Best expects that the company's prospective underwriting performance will improve following corrective actions taken by management. Investment returns remain the core driver of operating performance, with Jubilee generating a weighted average net investment yield, including capital gains, of 15.8% over the same five-year period.

As the third-largest private non-life insurer in Pakistan, Jubilee holds a solid competitive position within domestic market. The company's premium income increased by 15.2% in 2025. This was supported by inflation-driven rate increases and higher sums insured. However, writing PKR 26.6 billion (USD 95.0 million) of gross premium in 2025, 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 (BCR), Best's Performance Assessments (PA), Best's Preliminary Credit Assessments (PCA) 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 specializing 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.