Analyst
Maryam Arshad
maryam.arshad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Harmonizes IFS Rating of EFU General Insurance Limited
Rating Type | IFS | |
Current (31-Mar-22 ) |
Previous (25-Jun-21 ) |
|
Action | Harmonize | Maintain |
IFS Rating | AA++ (ifs) | AA+ |
Outlook | Stable | Stable |
Rating Watch | - | - |
Insurer Financial Strength (IFS) rating is an independent opinion on the relative “capacity of an insurance company to meet policyholder and contract obligations”. To facilitate insurance companies and users of IFS ratings, PACRA has modified the IFS rating scale. The primary objective behind this modification was to: a) Create distinction in symbols and definitions of IFS Ratings and Credit Ratings; previously same symbols were being used for both type of ratings. Now IFS symbols are exclusive for IFS ratings b) Eliminate ambiguities in terms of “Rating Category” and “Notch”; this has now been achieved in the modified scale, which will be helpful in understanding the meaning and connotation of each rating category and notch, c) Update certain definitions for more clarity.
This is expected to eliminate any overlap or ambiguity regarding rating categories and notches; thus, facilitating all stakeholders. The modified scale is applicable for all outstanding IFS ratings including “EFU General Insurance Limited”.
About
the Entity
EFU General, incorporated in 1932, is one of largest general insurance company in Pakistan (22% market share in gross premium written as at end-December 2020) and is listed on Pakistan Stock Exchange. Significant shareholding of EFU General is held by JS Group and Bhimjee Group. The group companies of EFU include EFU General, EFU Life and Allianz EFU Health Insurance. EFU General's BoD comprises ten members including the CEO. The Chairman of the board, Mr. Saifuddin N. Zoomkawala - seasoned insurance professional, has been associated with EFU Group since 1964. Mr. Hasanali Abdullah, the company's CEO & MD since July-2011, is associated with the EFU Group since 1979. He is supported by a team of experienced professionals, long associated with the company. The management has made significant strides to induct and build future leadership of the company.