Press Release

JCR-VIS Maintains IFS Rating of Takaful Pakistan Limited

Karachi, December 18, 2009: JCR-VIS Credit Rating Company Limited has maintained the Financial Strength Rating of Takaful Pakistan Limited (TPL) at ‘A-’ (Single A-) with a ‘Negative’ Outlook.

While the travel Takaful product was initially envisaged as the key driver of the company’s business strategy, TPL is now pursuing growth in more conventional business segments. Subsequent to the initial difficulties faced in the launch of the product, TPL has been able to address the shortcomings related to the Amaan Travel Takaful Package to the satisfaction of the regulators, who have allowed TPL to continue writing fresh policies.

During HY09, the Participants Takaful Fund reported a surplus, though overall balance of the fund is still negative. There has been some increase in outstanding balance of insurance debt over time and continued efforts are required for timely recovery of receivables to enable the fund to maintain sound liquidity profile. As expected of a new company, TPL has yet to achieve break-even, with net worth having almost halved after adjusting for the losses in shareholders’ fund and the deficit in Participants’ Takaful Fund. Future shareholders’ support may continue to be required and internal generation through profits will be tracked.

More recently, the company’s Chief Executive Officer has resigned and a new CEO has yet to be appointed. The strategic direction of the company under the guidance of a new CEO remains to be seen.

For further information on this rating announcement, please contact Syed Ziauddin Ahmed (Ext: 508) or Ms. Sobia Maqbool (Ext: 506) at 021-35311861-70 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 2009 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .