Press Release

JCR-VIS assigns ‘Positive’ outlook to IFS rating of Security General Insurance Company Limited

Karachi, January 5, 2010: JCR-VIS Credit Rating Company Limited (JCR-VIS) has maintained the Insurer Financial Strength (IFS) rating of Security General Insurance Company Limited (SGI) at ‘A’ (Single A). Outlook on the rating has been improved to ‘Positive’ from ‘Stable’.

The rating reflects the management’s ability to show volume growth in business, amidst difficult economic and political conditions. The company has also been able to simultaneously reduce the proportion of co-insurance business despite its size vis-à-vis larger players in the market. At the same time, the company’s strong internal control mechanism provides leverage in selective underwriting, the impact of which trickles down to improving claims performance. A ‘Positive’ outlook has been assigned in view of continued business growth; however the quality of new business underwritten will be monitored and will be evaluated before any revision in ratings.

The rating also incorporates the company’s investment holdings which provide a consistent income stream in the form of dividends. Although strategic in nature, comfort can be drawn from the fact that the considerable size of the portfolio can be utilized in order to meet liquidity requirements in an unforeseen event of contingency. While there has been considerable impairment in the value of these investments during FY08, some improvement has been posted during FY09, with deficits below cost having been replaced with surpluses, on account of partial recovery in the stock market.

For further information on this rating announcement, please contact Mr. Maimoon Rasheed at 042-36610681-83 or Ms. Sabeen Saleem (Ext: 510) at 021-35311861-70 or fax to 021-35311872-3.

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 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 2010 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