Press Release

JCR-VIS Upgrades IFS Rating of ACE Insurance Limited, Pakistan

Karachi, October 17, 2014: JCR-VIS Credit Rating Company Limited (JCR-VIS) has upgraded the Insurer Financial Strength rating of ACE Insurance Limited, Pakistan (ACE Pakistan) from ‘AA-’ (Double A Minus) to ‘AA’ (Double A). Outlook on the assigned rating is ‘Stable’.

The upgrade takes into account the improving financial risk profile of the ACE Group (Group), with which the company is associated. The Group is one of the world’s largest Multiline Property and Casualty insurers with operations in 54 countries.

ACE Pakistan benefits from the Group’s support in terms of underwriting expertise and reinsurance coverage, providing ACE Pakistan a competitive advantage. The company has one of the largest reinsurance treaty capacities 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 geographical risk diversification.

The rating incorporates ACE Pakistan’s strong risk adjusted capitalization level as evident from low net risk retention, conservative investment profile, sound liquidity indicators and a stable & professional management team. Business mix of ACE Pakistan is led by the Fire & Property damage segment. The company has the technical capacity to underwrite specialized risks. Premium written by the company witnessed a slight decline in 2013; growth in business volumes is evident in the on-going year, with the company expected to achieve full year target of Rs. 720m.

For further information on this rating announcement, please contact Mr. Abdul Rahim, ACII (Ext: 508) or Ms. Sobia Maqbool, CFA (Ext: 604) at (021) 35311861-70 (10 lines) or fax to (021) 35311873.

Javed Callea

Applicable rating criterion: Methodology: General Insurance (Nov 2003)

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 2014 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