Press Release

JCR-VIS reaffirms IFS rating of UBL Insurers Limited at A-

Karachi, October 14, 2008: JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength rating of UBL Insurers Limited (UIL) at ‘A-’ (Single A Minus). Outlook on the assigned rating is ‘Stable’.

Having completed its first full year of operations in FY2007, UIL has been able to sustain strong business momentum in the on-going year. In the backdrop of uncertain economic conditions, there is a sector-wide risk of higher claims and rising levels of insurance debt. The latter’s impact may be more pronounced in case of smaller companies which rely on co-insurance business in major segments of the underwriting portfolio. The management of UIL has placed considerable focus on generating direct business in the on-going year.

Underwriting operations of UIL are supported by a diversified panel of reinsurers including Swiss Re in lead on the motor portfolio and SCOR Re in other major business segments. The company also benefits from the franchise value of its major sponsor United Bank Limited for generating business. Performance has hitherto been at par with projected targets. The motor sector, albeit still the predominant driver of business volume has declined in proportion in the on-going year both on account of slowdown in credit off-take through leasing channels, and the management’s conscious decision to induce growth in other business segments.

JCR-VIS will continue to monitor the company’s progress in diversifying business mix and the consequent impact on the financial strength of the company.

For further information on this rating announcement, please contact Ms. Sobia Maqbool (Ext: 506) or Syed Ziauddin Ahmed (Ext: 508) at 5311861-70 (10 lines) or fax to 5311872-3.




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 .