Press Release

JCR-VIS Reaffirms IFS Rating of ACE Insurance Limited, Pakistan at AA-

Karachi, September 10, 2012: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Insurer Financial Strength rating of ACE Insurance Limited, Pakistan (ACE Pakistan) at ‘AA-’ (Double A Minus) with ‘Stable’ Outlook.

The assigned rating derives strength from the association of ACE Pakistan with the ACE Group (Group). The Group is one of the world’s largest Multiline Property and Casualty insurers with physical presence in 53 countries. ACE Pakistan benefits from the Group’s support in terms of underwriting expertise and reinsurance coverage. Moreover, fresh injection of capital by the parent has allowed the company to meet enhanced regulatory capital requirement in a timely manner.

The company has one of the largest reinsurance treaty capacities for fire, engineering and catastrophic risks in Pakistan with low per risk loss retention. Reinsurance treaties also provide coverage for risks located outside Pakistan enabling ACE Pakistan to insure risks in overseas markets; this provides potential for further geographical risk diversification.

Profitability indicators have improved in the outgoing financial year on the back of improved results from underwriting activities and higher investment income. Expense ratio has reduced considerably in view of growth in business volumes; moreover, loss ratio has also been recorded within manageable levels. Business written by the company largely represents assumed business. Going forward, the management has targeted to post annual growth of 20% in gross premium with greater focus on writing direct business.

Liquidity profile of ACE Pakistan is considered sound in view of adequate liquid reserves on the balance sheet. Leverage indicators of the company have also been maintained within prudent limits.

For further information on this rating announcement, please contact Mr. Jamal Abbas Zaidi (Ext: 408) or Ms. Sobia Maqbool, CFA (Ext: 604) at (021) 35311861-70 (10 lines) or fax to (021) 35311873.

Javed Callea

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 2012 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