Insurer Financial Strength

The Pakistan Credit Rating Agency (PACRA) has upgraded the IFS rating of Alfalah Insurance Company Limited to "AA+" after completing the rating update process of Insurer Financial Strength (IFS).

Alfalah Insurance Company Limited (“Alfalah Insurance” or “the Company”) is assigned ratings that reflect its affiliation with the Abu Dhabi Group and Bank Alfalah Limited (BAFL). As a non-life insurance provider, Alfalah Insurance offers both conventional and takaful products, with conventional business comprising ~85% of its operations. The rating derives comfort from the Company’s sound financial profile, underpinned by adequate business volumes and a strong, consistent income stream from its investment portfolio, which continues to support profitability. However, the Company has seen a shift in its market share. In CY24, the Company recorded a topline growth of ~8%, driven primarily by improved performance in the health segment, followed by the fire and property segment. The underwriting income remained under pressure, due to elevated claims trickling in from the health segment and increased management expenses. Despite this, the Company posted a net gain of ~27%, attributable to strong investment income of ~PKR 1,001mln (CY23: ~PKR 571mln), which offset the pressure of underwriting performance.