Press Release

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

Karachi, January 4, 2010: 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.

CICL posted notable growth in gross premium, despite reduction in its motor portfolio in line with management plans to reduce the same and declining trend in leasing business in the market. There was also significant improvement in underwriting profitability despite occurrence of a few large claims due to presence of adequate reinsurance cover. In line with the decline in KSE 100 index during FY08, the value of equity holdings held by the company also fell. However, adequate steps have been taken to diversify its investment portfolio in more stable assets classes including government securities and money market funds. The rating also takes comfort from presence of prudent investment guidelines for the portfolio, which is managed by an experienced investment professional.

JCR-VIS will monitor the company’s performance for its ability to maintain growth in business and profitability from both underwriting and investment activities while curtailing the level of insurance debt and maintaining sufficient liquidity.

We have also incorporated the level of sponsor support and the impact of change at the helm of the organization with appointment of Mr. Tinku Johnson as CEO who has over 22 years of experience in the insurance industry.

For further information on this rating announcement, please contact Syed Ziauddin Ahmed (Ext: 508) or Mr. Zia Usmani (Ext: 507) at 021-35311861-71 or fax to 021-35311873.



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 2010 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .