Press Release

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

Karachi, December 1, 2015: 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). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on October 17, 2014.

The assigned rating of ACE Insurance Limited (ACE Pakistan) derives strength from the ACE Group. ACE Pakistan is a wholly owned subsidiary of ACE INA International Holdings, Ltd. Delaware, USA, which is part of ACE Group. ACE Group is one of the world’s largest multiline Property and Casualty insurers with operations in 54 countries. Financial strength of the parent entity is strong as reflected in its Financial Strength Rating of ‘AA’ by an international rating agency.

The rating incorporates ACE Pakistan’s strong risk adjusted capitalization level as evident from strong treaty protection, conservative investment profile, sound liquidity indicators and one of the lowest combined ratios in the industry. Support from the parent entity is evident in terms of sizeable treaty capacities, largest in the domestic context, providing ACE Pakistan significant advantage in terms of business generation while allowing the company to prudently manage risk. Reinsurance treaties provide coverage for risks written outside Pakistan as well; enabling geographical risk diversification. Moreover, technical support from the Group provides strength to underwriting operations.

Business volumes depicted healthy growth during 2014 which along with low losses during the period translated into significant increase in underwriting profitability. Gross premium witnessed a decline in the ongoing year during 1HCY15; the same has witnessed an uptick during 3QCY15 on account of renewals due in July and underwriting of power sector exposures at a significant increase in premium rates. Despite multiple claims in the ongoing year, underwriting profitability has remained robust due to strong treaty protection. Overall profitability profile is supported by sizeable other income from bank placements.

ACE Pakistan benefits from qualified & competent team of senior management professionals. Changes were witnessed in the senior management team; vacancies have been filled through internal promotions.

For further information on this rating announcement, please contact the undersigned (Ext: 501) or Mr. Jamal Abbas Zaidi (Ext: 501) 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 2015 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