Press Release

JCR-VIS Reaffirms IFS Rating of UBL Insurers Limited

Karachi, October 19, 2012: 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’.

Having completed five years of operations, overall profit was reported by UIL for the first time in 2011; facilitated by incremental investment income arising from channelization of fresh equity injection of Rs. 300m by sponsors in 2010 into government securities. Given that 90% of investment portfolio comprises exposure in short-term government securities, pressure on investment yields may be witnessed, going forward, owing to cumulative cut of 400 bps in discount rate from August 2011 onwards.

Combined ratio of the company has remained above 100% as high loss ratios were reported in some business segments. Diversification of business into segments with lower loss norms and better risk pricing is required to improve results from underwriting operations.

Rating continues to derive support from the strong profile of UIL’s major sponsors, as also demonstrated by equity injection in the company, whenever the need has arisen. Liquidity profile of the institution is considered sound. Leverage indicators of the company also reflect potential for further growth.

For further information on this rating announcement, please contact Mr. Abdur Rahim (Ext: 508) or Ms. Sobia Maqbool, CFA (Ext: 604) at 92-21-35311861 or fax to 92-21-35311873.

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