Press Release

JCR-VIS upgrades IFS rating of Reliance Insurance Company Limited to A-

Karachi, June 29, 2006: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has upgraded the Insurer Financial Strength (IFS) rating of Reliance Insurance Company Limited (RICL) from ‘BBB+’ (Triple B Plus) to ‘A-’ (Single A Minus). Outlook on the rating is ‘Stable’.

The rating agency has incorporated the impact of RICL being managed by an experienced management team that has been with the company for a substantial period of time. The quality of its underwriting is reflected by its low claim ratio in the last five years, while business has grown at a gradual pace during the same period. Ratings also derive strength from the panel of re-insurers of good standing and the company having made significant progress in limiting its insurance debt that was previously high. JCR-VIS has also incorporated the management’s efforts to develop diversified investment portfolio to augment its earnings, income against which will serve as a cushion to volatility in claim performance. Although the company has invested in fixed income government securities, there exists price risk in equity securities that has to be managed cautiously. JCR-VIS will continue to monitor the performance of the company in terms of future business generation, business mix, re-insurance arrangements, cession of risk/ premium and performance of the investment portfolio.

For further information on this rating announcement, please contact Mr. Syed Ziauddin Ahmed (ext: 223) or Ms. Sabeen Saleem (sabeen@jcrvis.com.pk / 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 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 .