Press Release

JCR-VIS assigns IFS Rating to The Cooperative Insurance Society of Pakistan Limited

Karachi, September 23, 2015: JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned Insurer Financial Strength (IFS) rating of ‘BB-’ (Double B Minus) to The Cooperative Insurance Society of Pakistan Limited (CISPL). Outlook on the assigned rating is ‘Stable’. The previous action was withdrawal of rating; announced on May 16, 2014.

Ratings assigned to CISPL reflect its marginal capacity to meet policyholder and contract obligations. Underwriting business has remained limited owing to lower business from Provincial Co-operative Bank Limited (PPCBL), also CISPL’s major shareholder.

The society has not seen any major claims on account of low business volumes. Combined ratio remained weak as business is insufficient to cover management expenses. While underwriting operations of CISPL continues to report losses, investment income supported the bottom line with CISPL posting net profit of Rs. 1.4m during FY14 (FY13: Rs. 0.8m).

CISPL has a paid-up capital of Rs. 300m which mainly includes impact of capitalization of revaluation surplus to meet regulatory capital requirement. The rate of internal capital generation has remained low over the years on account of CISPL’s weak profitability. Moreover, support infrastructure needs improvement.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) at 021-35311861-71 or Mr. Maimoon Rasheed at 042-35723411-3 or fax to 021-35311872-3.

Mohammed Khalid Ali

Applicable Rating Criteria: 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 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 2015 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