Press Release

JCR-VIS Reaffirms IFS Rating of The Co-operative Insurance Society of Pakistan Limited

Karachi, December 19, 2017: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of The Co-operative Insurance Society of Pakistan Limited (CISPL) at ‘BB’ (Double B). Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on November 08, 2016.

The ratings assigned to CISPL takes into account marginal capacity of the society to meet policyholder and contractual obligations. Although underwriting business, albeit modest, has remained stable with low claims ratio, the company continues to post underwriting losses on account of low business volumes in relation to management expenses.

Majority of insurance business is routed through CSIPL’s largest shareholder; Punjab Provincial Cooperative Bank Limited (PPCBL) reflecting high concentration. Bottom line of the society gets impetus from investment income comprising dividend and rental income; however, net profit decreased during FY16 on account of incidence of higher property tax. Reinsurance panel and treaty terms remained unchanged with reinsurance coverage arranged through Pakistan Reinsurance Company Limited.

Liquidity profile is considered strong on account of adequate liquid assets in relation to technical reserves and other liabilities. Given modest business volumes, the operating and financial leverage remains low.

For further information on this rating announcement, please contact the undersigned (Ext: 201) at 92-21-35311861 or fax at 92-42-35311872 or Mr. Maimoon Rasheed at 92-42-35723411-13.

Javed Callea

Applicable Rating Criteria: General Insurance (March 2017)

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 2017 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