December 26, 2018 (MLN): PACRA has maintained IFS ratings of EFU General Insurance Limited at ‘AA+’ for long-term, with a stable outlook forecast.
The rating reflects the company's leading position in the general insurance sector. The company’s performance matrix is an explicit evidence as its profitability has a healthy contribution from both underwriting and investment functions.
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. 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, 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.
