The Pakistan Credit Rating Agency Limited
Press Release


Muhammad Noor Ul Haq

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PACRA maintains IFS rating of EFU General Insurance Limited

Rating Type IFS
(01-Jun-23 )
(17-Jun-22 )
Action Maintain Maintain
IFS Rating AA++ (ifs) AA++ (ifs)
Outlook Stable Stable
Rating Watch - -

The assigned rating takes into account EFU General's leading position in the general insurance sector, where it underwrites a varied range of non-life business segments. The Company’s importance to its sponsors is demonstrated by the presence of a brand name and successful track record of operations in the country. In addition to that the rating of EFU portrayed the Company’s ability to meet its liability towards policyholders. The rating interprets the company's vision to lead both in terms of size and profitability. Its market dominance is being achieved over the years through the effective utilization of technology to manage claims and the provision of customized services that cater to the diverse needs of customers. 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. The healthy contribution of investment income further augmented the profitability. 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 company's rating 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, incorporated in 1932, is largest general insurance company in Pakistan (22% market share in gross premium written as of end Sep'22) 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.