Press Release

JCR-VIS upgrades IFS rating of Alpha Insurance Company Limited to A

Karachi, October 19, 2009: JCR-VIS Credit Rating Company Limited has upgraded the Insurer Financial Strength Rating of Alpha Insurance Company Limited (AICL) to ‘A’ (Single A) from ‘A-’ (Single A Minus). Outlook on the assigned rating is ‘Stable’.

The rating action incorporates significant changes in the Board and the top management, which have brought about a positive change in the management strategy, vision and commitment regarding performance. Going forward, stability and continued strategic guidance and contribution of board members, through their presence on board committees, will be critical towards maintaining the assigned rating.

AICL is a subsidiary of State Life Insurance Corporation of Pakistan (SLIC), the largest life insurer of the country, having strong market franchise. The rating action takes into account renewed support extended by SLIC, which is looking towards becoming a one-window insurance provider. In line with this co-branding strategy, AICL will be given access to the parent company’s well-spread branch network and large agency sales force. Injection of Rs. 100m by SLIC is also expected to be completed shortly and necessary requirements are being fulfilled in this regard. Additionally, management support is being provided by SLIC to strengthen investment management, IT and human resource management functions of the company. Various strategies to improve the efficiency of the company are either in the pipeline or have been already implemented, including strengthening of management resource and implementation of the information system.

Declining trend in business volumes coupled with infrastructure related expenditures, including hiring of experienced professionals, have currently stressed profitability indicators. Impact of the above mentioned initiatives on performance is expected to become evident from early next year. JCR-VIS will closely monitor performance of the company vis-à-vis achievement of turnaround objectives and timely completion of capital injection.

For further information on this rating announcement, please contact the undersigned (Ext: 508) or Mr. Zia Usmani (Ext: 507) at 021-35311861-70 (10 lines) or fax to 021-35311873.



Syed Ziauddin Ahmed
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 2009 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .