Press Release

JCR-VIS Reaffirms IFS Rating of Security General Insurance Company Limited at A

Karachi, October 31, 2008: JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength Rating of Security General Insurance Company Limited (SGI) at ‘A’ (Single A) with a ‘Stable’ outlook.

During 2007, SGI was able to arrest the declining trend in business volume, with growth having continued in the current financial year. The management however expects a relative slow down in the coming year, given the recent developments on the economic front. Selective underwriting and adequate reinsurance coverage has resulted in improved claims ratio. The company was able to post a marginal underwriting profit for 2007 vis-à-vis loss from underwriting operations in 2006.

Revenues had previously received considerable impetus from investment activity. The company holds a sizeable investment portfolio, which is invested in a few scrips. A decline of nearly 38% in the KSE-100 index till the imposition of a floor of 9,144pts in late August 2008 and consistently low trading volumes have reduced the market value of securities, while also affecting the liquidity of equity holdings and reducing opportunities for capital gains.

Economic conditions and state of unrest will continue to bear significant impact on insurance activities and its effect, if any, on re-insurance treaties for the coming year will be monitored by JCR-VIS.

For further information on this rating announcement, please contact the undersigned (Ext: 508) or Ms. Sobia Maqbool (Ext: 506) at 5311861-71 or fax to 5311872-3.

Faheem Ahmed
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 not an NRSRO and its credit ratings are not NRSRO credit ratings.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.

JCR-VIS Credit Rating Company Limited