PACRA Maintains IFS Rating of EFU General Insurance Limited

EFU General Insurance Limited ("EFU General" or "the Company") ratings reflect its leading position in the general insurance sector, fortified by robust sponsorship from JS Group and the Bhimjee Family. EFU General has established its position as a leader. The Company offers both conventional and takaful insurance where the conventional segment constitutes the majority of its operations, comprising ~93% of its portfolio. The Company's financial robustness is notable, supported by a strong investment portfolio and a strong equity base. ~37% of its investment book is allocated to government securities, ensuring a stable and liquid asset base. EFU General's adept management of liquidity, coupled with cash flow generation from core operations, underscores its capacity to meet policyholder obligations promptly and effectively. Further enhancement of core business profits remains crucial, going forward. EFU General's profitability is further enhanced by its strategic approach to investment income management. The Company has leveraged technology to streamline claims processing and deliver tailored services, enabling it to capture market share and maintain a competitive edge. Risk management is a cornerstone of EFU General's operations, with comprehensive mechanisms in place to mitigate potential threats. The Company employs the Solvency II framework (risk-based capital) as its internal capital model which will be helpful in complying with the risk-based capital regime, to be instituted by the regulator. Strategic reinsurance arrangements with international partners provide an additional layer of protection, instilling confidence in the Company's ability to navigate uncertainties effectively. Overall, EFU General Insurance Limited is well-positioned for sustained growth and profitability in the dynamic insurance landscape. Its strong market position, sound financial footing, and proactive risk management practices underscore its resilience and ability to deliver value to stakeholders in the long term.
The Company's rating is dependent on its ability to maintain competitiveness, which is heavily influenced by effective risk management and growth in business volumes, both of which are crucial in the current industry landscape.

About the Entity
EFU General Insurance Limited (“EFU General” or “the Company”) was incorporated in 1932 as a Public Listed Company (listed on PSX). The Company operates as a general insurance company. The ownership of the Company is primarily divided between the Bhimjee Group (~28.2%) and the JS Group(~40.6%). Leading the Board is Chairman Mr. Saifuddin N. Zoomkawala. Mr. Kamran Arshad Inam is the CEO. He is supported by a team of experienced professionals having a long association with the Company.