Press Release

JCR-VIS Upgrades IFS Rating of UBL Insurers Limited

Karachi, November 13, 2014: JCR-VIS Credit Rating Company Limited has upgraded the Insurer Financial Strength rating of UBL Insurers Limited (UIL) from ‘A’ (Single A) to ‘A+’ (Single A plus). JCR-VIS had assigned Positive Outlook in December 2013; Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 10, 2013.

The assigned rating reflects UIL’s improvement in underwriting performance, adequate capitalization & liquidity indicators and conservative investment profile. The ratings also draw strength from the strong profile and demonstrated financial support of its sponsors. Ability to demonstrate a consistent and improving track record in underwriting performance and a strengthening trend in capital on both absolute and risk-adjusted basis will continue to be tracked by JCR-VIS.

Business volumes have depicted steady growth over the last two years with growth momentum continuing in the ongoing year. Most of this growth has been achieved through market based business. Management has taken measures to improve underwriting performance through increasing premium rates, reducing retention in high loss segment and implementation of strict underwriting controls. Resultantly, claims performance has showcased improvement in the on-going year. UIL has an adequate reinsurance program in place while financial profile of reinsurers on the panel is considered sound.

Capitalization and solvency position of the company is considered adequate with net admissible assets well in excess of the regulatory requirement. Leverage indicators have remained low, given the company’s low retention policy in major business segments so far. Operating leverage may increase as the company continues to grow while increasing retention, as planned, unless the rate of internal capital generation is higher.

As per a notice on the local bourse, Bestway Cement Limited (BCL) is considering to acquire the entire shareholding of the Abu Dhabi Group in UIL. Currently Bestway (Holding) Limited and UBL, associated companies of BCL, jointly hold 85.6% shares of UIL.

For further information on this rating announcement, please contact Mr. Abdur Rahim (Ext: 508) or Ms. Sobia Maqbool, CFA (Ext: 604) at 92-21-35311861 or fax to 92-21-35311873.



Jamal Abbas Zaidi
Deputy CEO



Applicable rating criterion: Methodology: General Insurance (Nov 2003)

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 2014 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .