Press Release

JCR-VIS Reaffirms IFS rating of Century Insurance Company Limited

Karachi, January 07, 2011: 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 reaffirmation takes into account sound capitalization and liquidity indicators maintained by the company. Also, loss norms compare favorably to peers and underwriting results of the company have remained consistently positive.

Business volumes achieved up to 3Q10 have been maintained at 3Q09 levels. The company has significant room to grow in view of its low leverage indicators. Growth targets for FY11 entail higher generation of non-group business through existing network of branches and business centers, thereby reducing the dependence of the company on group business. The company has hired an experienced CEO in 2010; stability at the helm of the organization will facilitate in achievement of business targets for 2011.

The company reported a loss in 2009 on account of booking of deferred impairment losses on investments experienced in 2008. Fresh exposure in equity markets has been small which is expected to limit the impact of adverse movement in stock market. Profitability position of the company has improved in 3Q10 and aggregate flood related losses on net account have been minimal.

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 021-35311873.




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 2011 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .