Press Release

JCR-VIS Upgrades IFS Rating of ACE Insurance Limited to AA-

Karachi, August 1, 2011: JCR-VIS Credit Rating Company Limited (JCR-VIS) has upgraded the Insurer Financial Strength rating of ACE Insurance Limited, Pakistan (ACE Pakistan) to ‘AA-’ (Double A Minus) from ‘A+’ (Single A Plus). Outlook on the assigned rating is ‘Stable’.

Rating derives strength from the association of ACE Pakistan with ACE INA International Holdings, Ltd. In addition to timely injection of capital by the parent, in line with the increasing capital requirements for insurance companies, the company benefits from the franchise of the parent entity while also enjoying strong group support, in terms of technical expertise on the underwriting side and reinsurance coverage. Regulatory deadline for raising paid-up-capital to Rs. 300m by December 31, 2011 is expected to be met in a timely manner. The management team has depicted stability over the years and comprises experienced professionals.

With the largest reinsurance treaty capacities in the industry for fire and catastrophic cover, the company has the distinct advantage of insuring bigger risks in the market. In view of low loss retention in excess of loss treaties, the company has the ability to underwrite multiple risks. Apart from a few facultative risks, ACE Tempest Reinsurance Ltd., Bermuda is the sole provider of reinsurance for ACE Pakistan.

Business volumes exhibited healthy growth in 2010. Even though large flood-related claims were received in 2010, net claims ratio remained low. Stable stream of income arising from low-risk investments continues to support profitability position of the company.

For further information on this rating announcement, please contact Mr. Syed Ziauddin Ahmed (Ext: 508) or Ms. Sabeen Saleem, CFA (Ext: 510) at 35311861-70 (10 lines) or fax to 35311873.

Faheem Ahmad
President & CEO

Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-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. JCR-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. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-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 2011 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited