Press Release

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

Karachi, October 23, 2008: JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength (IFS) rating of Century Insurance Company Limited (CICL) at ‘A’ (Single A) with a ‘Stable’ outlook.

The rating incorporates the impact of recent capital injection that is expected to provide cushion against stress emanating from the currently adverse economic conditions while also improving liquidity profile of CICL. Uncertain economic conditions and turmoil in the country have led to a sector-wide risk of higher claims. CICL also experienced significantly large losses on account of year-end riots in 2007, which were settled due to adequate reinsurance arrangements. CICL has maintained the sound quality of its reinsurance panel led by Mitsui Sumitomo. Underwriting results were nevertheless affected by increase in net claims ratio during 2007 and gross premium depicted only a marginal increase. However, there has been improvement in the claims ratio during first half of 2008.

While insurance companies had so far enjoyed significant support from investment activity, recent activity on the stock market has adversely affected returns on equity investments while placement of floor on prices of listed equities has affected marketability of these holdings. Resultantly, holding value and liquidity of equity exposures held by CICL has also been impacted.

For further information on this rating announcement, please contact Syed Ziauddin Ahmed (Ext: 508) or Ms. Sobia Maqbool (Ext: 506) at 5311861 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 2008 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .