Press Release

JCR-VIS reaffirms the IFS rating of Adamjee Insurance Company Limited at AA

Karachi, December 6, 2006: JCR-VIS Credit Rating Co Ltd. (JCR-VIS) has reaffirmed the Insurer Financial Strength rating of Adamjee Insurance Company Limited (AICL) at AA (Double A) with a ‘Stable’ outlook.

The rating reflects the strong franchise value and market presence of the company. The rating agency has also taken note of the measures being taken by the management to raise standards of corporate governance and re-structure the company.

Over the years, AICL has built upon its investment portfolio which has strengthened its reserves, thus increasing its loss absorption capacity. AICL also has a well-reputed and sound quality reinsurers’ panel, which adds to the company’s strength. However, as the company increased its risk retention over the years, particularly in the fire segment, with a shift from surplus to excess of loss treaties, the underwriting performance has exhibited increased volatility. Nevertheless, underwriting results have improved over the last eighteen months and the return earned on the investment portfolio has been a substantial buffer to the company’s bottom line. The company has also maintained a sound level of liquidity. The business mix of AICL continues to be diversified with growth having been attained in all major business segments.

For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 221) 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 December 06, 2006 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.