Press Release

JCR-VIS Reaffirms IFS rating of Security General Insurance Company Limited at A

Karachi, October 20, 2007: JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength rating of Security General Insurance Company Limited (SGI) at ‘A’ (Single A) with a ‘Stable’ outlook.

Having consolidated business over the last two years by limiting exposures to riskier segments, the declining trend in premium base is showing signs of reversal during the on-going financial year. While claims performance has improved during HY07, profitability from underwriting operations remains constrained due to small volume of operations vis-à-vis management expenses. Projected growth in insurance portfolio is however expected to improve efficiency levels and trends in this respect would be closely monitored by JCR-VIS.

Profitability of the company continues to be extensively supported by investment income. The market value of investment portfolio has increased further, providing significant cushion to policyholders. The portfolio however continues to feature high level of concentration, which has implications for the price risk borne by the company.

For further information on this rating announcement, please contact the undersigned (Ext: 508) or Ms. Sobia Maqbool (Ext: 506) at 5311861-71 or fax to 5311872-3.



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 October 20, 2007 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.