Press Release

JCR-VIS upgrades the IFS rating of Adamjee Insurance Company Limited to AA

Karachi, October 17, 2005: JCR-VIS Credit Rating Company Limited has upgraded the Insurer Financial Strength ratings of Adamjee Insurance Company Limited (AICL) from AA- (Double A minus) to AA (Double A).

The company’s nationwide outreach & its financial strength, as reflected in its reserves and the diverse earning potential of its investment portfolio remain the key determinants of AICL’s ratings. AICL is well positioned within the local insurance industry with strong franchise value.

The company’s half-year results are promising and reflect a significant underwriting profit for Pakistan’s operations. The impact of reduced claims from the company’s overseas operations on its underwriting results has also been favorable and likely to be permanent. The upgrade in ratings takes into consideration the company’s renewed focus on enhancing its technological capabilities and human resource development. Although the rating agency has reposed confidence in the new management and senior financial team that have recently been put into place, JCR-VIS will continue to monitor its stability and cohesion. A strategic alliance with one of the largest financial institutions in the country is also likely to result in a competitive advantage.

However, as re-insurers globally confer increasingly higher risks to the insurer, there is a greater need for sophisticated risk management systems. JCR-VIS further believes that AICL has potential for further improvement in earnings through a more efficient utilization of staff and branch network.

For further information on this rating announcement, please contact Mr. Muhammad Ameen (Ext: 233) or Ms. Sabeen Saleem (Ext: 222) at 5671822/5671833/5680996 or fax to 5681105/5671600.



Faheem Ahmad
President & CEO

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright October 17, 2005 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.