Press Release

JCR-VIS Reaffirms IFS Rating of UBL Insurers Limited

Karachi, September 19, 2011: JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength rating of UBL Insurers Limited (UIL) at ‘A’ (Single A). Outlook on the assigned rating is ‘Stable’.

The rating derives strength from the financial strength of major sponsors of the company, as also evidenced by the recent capital injection of Rs. 300m in the institution. Leverage indicators of the company are considered within prudent limits. Moreover, liquidity profile of the company is also considered sound.

The unprecedented floods in 2010 adversely affected underwriting results of the company. Even though the magnitude of losses has reduced, combined ratio has remained in excess of 100%. The management has targeted 2011 to be a fully profitable year. Various measures were taken in 2010 to rationalize operating expenses, translating into a lower expense ratio for the year. For 2011, while enhanced support is expected from investment income, given the restructuring of investment portfolio, key risk to future profitability stems from some areas of the underwriting operations. Given the spate of recent events, underwriting performance of fire, crop loan insurance and bankers’ blanket business may remain under pressure in the on-going year as well.

For further information on this rating announcement, please contact the undersigned (Ext: 508) or Ms. Sobia Maqbool, CFA (Ext: 506) at 021-35311861-70 or fax to 021-35311872-3.

Syed Ziauddin Ahmed

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