Press Release

JCR-VIS assigns initial rating of A- to Pak-Kuwait Takaful Company Limited

Karachi, January 9, 2009: JCR-VIS Credit Rating Company Limited has assigned an initial financial strength rating of ‘A-’ (Single A Minus) to Pak-Kuwait Takaful Company Limited (PKTCL). Outlook on the assigned rating is ‘Positive’.

PKTCL was the first company in Pakistan to initiate operations in the general takaful sector. Sponsors include reputable names from the local and international financial sector, which have provided PKTCL with business opportunities and technical expertise in the form of operational manuals, policy documents and overall underwriting procedures. Key executive positions at PKTCL are largely held by qualified personnel from the financial sector. Additionally, the panel of retakaful operators has also been progressively strengthened with the introduction of M/s Hanover Re during 2008 and M/s Al Fajer Re as well as Malaysian National Reinsurance Berhad (MNRB) during 2009. The lead retakaful operator remains M/s Labuan Re. Treaty limits have improved further during the ongoing year, enabling the company to grow its non-motor portfolio.

Having initiated operations with motor business sourced through a major sponsor, underwriting operations of PKTCL were initially centered on the motor segment. During the outgoing year, however, there was significant emphasis on developing other sources of business while a more balanced portfolio is expected to emerge during ensuing quarters. More recently, the company has been able to attract non-motor business from reputable corporates. Projected business growth is ambitious. Ratings of PKTCL have been assigned a ‘Positive’ outlook on account of improvement in loss absorption capacity expected during the ongoing year.

Insurance debt of PKTCL has accumulated rapidly relative to growth in the non-motor portfolio. JCR-VIS will be carefully monitoring trends in this respect, in addition to progress towards diversifying business mix and the consequent impact on the risk profile of the company.

For further information on this rating announcement, please contact Syed Ziauddin Ahmed (Ext: 508) or Ms. Sobia Maqbool (Ext: 506) at 5311861-70 or fax to 5311873.

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 2009 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