Press Release

JCR-VIS Reaffirms IFS rating of The Cooperative Insurance Society of Pakistan Limited at B+

Karachi, January 04, 2013: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of The Cooperative Insurance Society of Pakistan Limited (CISPL) at ‘B+’ (Single B Plus). Outlook on the assigned rating is ‘Stable’.

The society has witnessed decline in business volumes over the past few years. Growth in business volumes is required to improve financial performance, while maintaining risk within prudent limits. The society has re insurance cover available from Pakistan Re-insurance Company limited; treaty terms have mostly remained unchanged. The management is expecting revival in business volumes, going forward. JCR-VIS will closely track progress in this regard. Meanwhile, control infrastructure may also be improved.

Investment income provides some support to bottom line. The investment portfolio comprises equities, low risk fixed income instruments in addition to which the society has sizeable properties on prime locations. Management of the society is re-negotiating rent with existing tenants to bring about improvement in rental income of the society.

For further information on this rating announcement, please contact Ms. Sobia Maqbool, CFA at 021-35311861-70 or Mr. Maimoon Rasheed at 042-36610681-84 or fax to 021-35311873.

Jamal Abbas Zaidi
Deputy 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 2013 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