Press Release

JCR-VIS reaffirms IFS rating of Alpha Insurance Company Limited at A-

Karachi, October 9, 2008: JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength (IFS) rating of Alpha Insurance Company Limited (AICL) at ‘A-’ (Single A Minus) with a ‘Stable’ outlook.

The rating takes into account strength of major shareholder, State Life Insurance Corporation of Pakistan, which is a large state-owned life insurance company. The company’s lead reinsurer is Mitsui Sumitomo Reinsurance Limited, enjoying 50% share in treaty terms.

In 2007, growth trend in business volumes has been reversed while underwriting performance has also been stressed. Investment activity had provided support to profitability last year. However, in the current economic scenario, both returns and liquidity profile of equity holdings has been adversely affected. An integrated IT system has yet to be deployed, though AICL has acquired a system adopted by other leading companies in the sector. JCR-VIS will closely monitor trends in underwriting performance and progress on deployment of the IT system.

For further information on this rating announcement, please contact Syed Ziauddin Ahmed (Ext: 508) or Ms. Sobia Maqbool (Ext: 506) at 5311861-70 (10 lines) or fax to 5311873.



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 October 09, 2008 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.