Press Release

JCR-VIS revises IFS rating of The Pakistan General Insurance Company Limited to B+

Karachi, August 31, 2006: JCR-VIS Credit Rating Company Limited (JCR-VIS) has revised the Insurer Financial Strength (IFS) ratings from ‘B’ (Single B) to ‘B+’ (Single B Plus) with a ‘Stable’ outlook.

The ratings have been revised taking into account the company’s commitment to increase its paid-up capital. The company has upgraded its IT software during the year to cater to its growth requirements and the quality of re-insurers on the company’s panel remains adequate. Nevertheless, further improvement in internal controls might be required to cater to higher business volumes.

PGICL has been operating in the insurance sector for over 50 years and has a large branch network. Although the company has shown 18% growth in business during 2005, due to higher expense ratio, underwriting profits are marginal. A large proportion of the company’s assets continue to be deployed in non-earning real estate and PGICL could therefore benefit from developing a diversified investment portfolio to improve its liquidity position, income on which can also serve as a buffer against volatility in underwriting performance. Further, if contingent liabilities become payable, the company’s financial position may be affected, accordingly.

For further information on this rating announcement, please contact Mr. Syed Ziauddin Ahmed (Ext: 223) 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 August 31, 2006 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.