The Pakistan Credit Rating Agency Limited
Press Release


Ayesha Qasim

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PACRA Maintains IFS Rating of EFU General Insurance Limited

Rating Type IFS
(29-Jun-18 )
(30-Dec-17 )
Action Maintain Maintain
IFS Rating AA+ AA+
Outlook Stable Stable
Rating Watch - -

The rating interprets the company's vision to lead both in terms of size and profitability. Sponsors (Bhimjee family and JS Group), board and the management are aligned on this, enabling a better focus in strategy and efforts. Increasing emphasis on customer service including concerted efforts to bring efficacy in claims settlement process with support from technology helps in sustaining market share. Strong liquidity and sound cash flow generation ability provide strength to the rating. The business strategy, going forward, is envisaging substantial benefit emanating from CPEC related projects and overall dynamism in the economy. EFU Group continues to enjoy leadership in insurance industry – General and Health while securing second position in Life Insurance. In window takaful, EFU General Insurance remained leader (23% market share), with Participant’s Takaful Fund and Operator’s Fund both in surplus. This furnishes strength to the brand and ability to serve diverse client needs and ability to capture large client base in the market. The company has posted strong profitability from underwriting and investment portfolio.
The rating is dependent on sustained competitiveness of the company. High growth in business volume, the industry leaders are expected to enhance their risk retention appetite with the emphases on risk management practices.

About the Entity
EFU General, incorporated in 1932, is the largest general insurance company in Pakistan (24% market share in gross premium written in 2017) and is listed on Pakistan Stock Exchange. Significant shareholders of EFU General include JS Group and Bhimjee Group. Among EFU companies are EFU General, EFU Life and Allianz EFU Health Insurance. EFU General's BoD comprises nine 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-11, is associated with the EFU Group since 1979. He is supported by a team of experienced professionals, long associated with the company. The emphasis on longevity of association needs careful balance with needs of energy and dynamism.

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.