Lahore, March 6, 2025: VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength Rating of EFU Life Assurance Limited at ‘AA++ (IFS)’ (Double A Plus Plus (IFS)). The rating signifies very strong capacity to meet policyholder and contractual obligations. Risk factors are very low, and the impact of any adverse business and economic factors is expected to be very small. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 29, 2023.

The rating assigned to EFU Life takes into consideration the Company’s dominant market position in the private life insurance industry. The rating also derives support from strong sponsorship profile comprising of the EFU Group, Pakistan’s largest insurance conglomerate and considers the quality and stability of the Company’s senior management. The Company expanded its operational scope through the acquisition and subsequent merger with EFU Health Insurance Limited. This strategic merger aimed not only to solidify EFU Life’s market position but also to enhance its health insurance product offerings, thereby delivering greater value to its stakeholders through increased market reach and operational synergies. In addition to this, EFU Life has a dedicated and independent enterprise risk management (ERM) function that ensures sound risk recognition, assessment and development of controls in respective areas of operation.

Additionally, the financial risk assessment highlights the positive impact of topline growth, driven primarily by the success of group business. Despite higher surrender claims, the bottom-line performance was supported by a sizeable uptick in investment income generated from debt instruments as the overall investment portfolio is largely tilted towards them. The rating also incorporates sound reinsurance arrangements with renowned international reinsurers with appropriate risk retention on net account to maintain risk appetite of the Company. Moreover, with sufficient available liquid assets along with adequate capital coverage of claims, liquidity and capitalization levels remained satisfactory. Going forward, improvement in the underwriting performance, particularly by restricting policy surrenders and uplifting business volumes in the individual segment, will be important from a rating’s perspective