Press Release

JCR-VIS assigns ‘Positive’ outlook to IFS rating of The Pakistan General Insurance Company Limited

Karachi, October 20, 2009: JCR-VIS Credit Rating Company Limited (JCR-VIS) has maintained the Insurer Financial Strength (IFS) rating of The Pakistan General Insurance Company Limited (PGICL) at ‘BBB’ (Triple B). Outlook on the rating has been revised to ‘Positive’.

The rating action takes into account the company’s decision to retain proceeds of land sale, which has enhanced the capitalization and loss absorption capacity of the company. Maintenance of capitalization around current levels will be a key rating consideration going forward. The rating also incorporates consistency in business mix/growth and maintenance of adequate underwriting quality.

PGICL’s focus towards real estate investment provides sustained support to profitability through rentals; however, excessive exposure in properties may expose the organization to liquidity risk. Furthermore, there is significant room for improvement in IT infrastructure, documentation of SOPs and development of required manuals to ensure smooth operations in the long run. Steps taken to improve the overall level of corporate governance and IT setup will continue to be closely monitored.

For further information on this rating announcement, please contact the undersigned (Ext: 508) or Ms. Sabeen Saleem (Ext: 510) at 021-35311861-71 or fax to 021-35311872-3.



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