The Pakistan Credit Rating Agency Limited
Press Release


Waqas Ahmad

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PACRA maintained the rating of EFU General Insurance Limited

Rating Type IFS
(17-Jun-22 )
(31-Mar-22 )
Action Maintain Harmonize
IFS Rating AA++ (ifs) AA++ (ifs)
Outlook Stable Stable
Rating Watch - -

The rating incorporates EFU General’s leading position in the general insurance industry, underwriting a diversified portfolio across non-life business segments. IFS (Insurance Financial Strength) rating of EFU portrayed the Company’s ability to meet its liability towards policyholders. Comfort is derived from the company’s performance matrix. Underwriting and Investment Income have provided a healthy contribution to the profitability. Optimal use of technology for the management of claims, and tailored made services to cater diverse needs of customers ensured their dominance in the Market. Comprehensive risk management mechanisms are deployed to mitigate risk and maintenance of reinsurance treaties with international reinsurers-built confidence on rating. Efficient administration of liquidity position and generation of cash flows from core business provides a strong base to honor its obligation promptly. In window takaful, EFU General Insurance remained the leader, with Participant’s Takaful Fund and Operator’s Fund both in surplus. This furnishes strength to the brand and the ability to serve diverse client needs.
The general insurance industry had a growth rate of 11% prior to Covid-19, however, the pandemic affected the business volume, leading to growth contraction. Economic recovery was observed in CY21, contributing to the progression of trade volumes.
The rating is dependent on the sustained competitiveness of the company. Risk management and growth in business volumes are two critical factors for progression in current industry dynamics.

About the Entity
EFU General, incorporated in 1932, is largest general insurance company in Pakistan (21% market share in gross premium written as of end-December 2021) 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 – a 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 leaders of the company.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.