Press Release

JCR-VIS reaffirms the IFS Rating of East West Insurance Company Limited at A-

Karachi, December 24, 2009: JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength (IFS) rating of East West Insurance Company Limited (EWI) at ‘A-’ (Single A Minus). Outlook on the assigned rating is ‘Stable’.

The assigned rating takes into consideration EWI’s diversified business mix and continued growth in revenue streams. The rating also incorporates low level of insurance debt and adequate underwriting performance of the company. Although re-insurance panel of the company is sound, EWI bears a significantly large proportion of risk on its own account compared to its peers with crop and livestock related risks being entirely retained by the company.

Asset base of the entity witnessed significant erosion during FY08 on account of heavy mark to market loses on equity investments. While liquidity indictors of EWI have also dampened, they are still sufficient to cover EWI’s core liabilities. Management information systems of the organization have significant room for improvement and efforts in this regard have been ongoing for an extended period of time.

The equity portfolio is highly concentrated and investment in associated concerns represents a major proportion of the total investment portfolio. JCR-VIS will closely monitor EWI’s efforts for improvement in controls and information systems and steps taken to streamline the investment management process in line with best practices of corporate governance.

For further information on this rating announcement, please contact the undersigned (Ext: 508) or Ms. Sabeen Saleem (Ext: 510) at (+92-21) 35311861-70 (10 lines) or fax to (+92-21) 35311873.



Syed Ziauddin Ahmed
Advisor

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 24, 2009 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.