Press Release

JCR-VIS reaffirms IFS rating of Security General Insurance Company Limited (SGI) at ‘A’

Karachi, October 19, 2006: JCR-VIS has reaffirmed the Insurer Financial Strength rating of Security General Insurance Company Limited (SGI) at ‘A’ (Single A) with a ‘Stable’ outlook.

The rating agency has noted the impact of significant increase in the market value of investment portfolio held by the company during 2005/2006 providing SGI with substantial un-realized cushion for unforeseen losses along with substantial income from this source. However the investment portfolio of the company is prone to both market and unique risk, as it is highly concentrated both in terms of asset classes as well as by issuers.

JCR-VIS has also observed that the company is currently in the phase of scaling down its operations owing to which underwriting profits have also declined. Nevertheless, income from its investment portfolio has been sufficient to generate substantial level of profits for the company. The company is likely to continue with its efforts of business consolidation during 2006.

For further information on this rating announcement, please contact the undersigned (Ext: 233) or Ms. Sabeen Saleem (Ext: 222) at 5671822/5671833/5680996 or fax to 5681105/5671600.

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 2006 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