Press Release

JCR-VIS Upgrades IFS Rating of Pakistan General Insurance Company Limited

Karachi, January 02, 2012: JCR-VIS Credit Rating Company Limited (JCR-VIS) has upgraded the Insurer Financial Strength (IFS) rating of The Pakistan General Insurance Company Limited (PGI) to ‘BBB+’ (Triple B Plus) from ‘BBB’ (Triple B). Outlook on the assigned rating is ‘Stable’.

Despite steady growth in business volumes, leverage indicators have remained strong indicative of sound financial position of the company. Liquidity profile is also considered moderate given adequate liability coverage. Moreover, PGI owns considerable investment properties. Insurance debt as a percentage of gross premium has also remained within prudent limits.

Underwriting performance of the company came under pressure during 2010 largely attributable to flood related losses; however, claims ratio has improved considerably in the ongoing year. Consequently, bottom line results have also improved during the year. While there has been some improvement recorded in the expense ratio, it is still considered on the higher side.

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




Mr. Javed Callea
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 January 02, 2012 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.