AM Best Affirms Jubilee General Insurance Credit Ratings

In Short

AM Best reaffirmed Jubilee General Insurance Company Limited’s key credit ratings. The insurer is also shifting its investment mix away from equities.

What Happened

AM Best affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb” (Fair) for Jubilee General Insurance Company Limited.

A Financial Strength Rating is AM Best’s view of an insurer’s ability to pay claims. An Issuer Credit Rating is a view of the company’s ability to meet its wider debt and financial obligations.

AM Best kept the outlook on the financial strength rating stable. It set a positive outlook on the long-term issuer credit rating, which signals a potential upgrade if the company’s risk and performance profile improves.

AM Best said the ratings reflect strong balance sheet strength and strong operating performance. It also pointed to a limited business profile and marginal enterprise risk management, which is how a company identifies and controls risks across the business.

A key point in the report is Jubilee’s plan to reduce equity holdings. The insurer is targeting equities at about 30% of total investments in 2026, down from 43% at year-end 2025. It expects to reinvest proceeds into fixed income securities, which are typically less volatile than shares.

AM Best also noted underwriting pressure in 2025. Jubilee’s combined ratio, a metric where anything above 100% means underwriting losses, rose to 101.3% due to flood and fire losses. Over 2021 to 2025, the combined ratio averaged 95.4% and return on equity averaged 19.5%.

Why It Matters

Credit ratings affect how insurers access capital, attract corporate clients, and negotiate reinsurance, which is insurance for insurers.

Jubilee’s portfolio shift toward fixed income could reduce investment risk. It may also make capital adequacy less sensitive to market swings, which AM Best flagged as an important factor.

While this rating action is for a Pakistan-based insurer, it matters for African insurtech and insurance operators tracking global rating agency standards. Jubilee is also a well-known brand across East Africa through Jubilee Insurance, and credit strength signals can influence partner and investor confidence across markets.