Press Release
VIS Reaffirms IFS Rating of EFU Life Assurance Limited
Lahore, March 5, 2026: VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength Rating of EFU Life Assurance Limited (EFUL) 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 March 6, 2025.
The rating assigned to EFUL takes into consideration the Company’s dominant market position in the private life insurance industry. The rating also derives support from a strong sponsorship profile comprising of the EFU Group, Pakistan’s largest insurance conglomerate, the Company’s public listed status (allowing focus on regulatory oversight, transparency and governance) and considers the quality and stability of the Company’s senior management. The assigned rating further considers the growth manifested in the Gross Written Premium (GWP) during 2025, primarily driven by the Corporate Segment. However, following the optimization of the sales force channel and introduction of new products, Retail Segment also posted growth. During the ongoing year, the Company demonstrated resilient financial performance, supported by disciplined financial management and prudent operating practices. Furthermore, EFUL maintains a dedicated and independent Enterprise Risk Management (ERM) function, which strengthens risk identification, assessment, and control mechanisms across its operations.
The rating also incorporates sound reinsurance arrangements with renowned international reinsurers with appropriate risk retention on net account to remain within limits specified by the risk appetite of the Company. Moreover, supported by sufficient liquid assets along with adequate capital coverage of claims, the Company’s liquidity and capitalization levels remained satisfactory. The ongoing provincial sales tax dispute remains a key regulatory matter for the life and health insurance sector. EFUL, along with industry peers, has contested the applicability of the tax and continues to treat exposure as contingent pending final legal resolution. The Company maintains adequate financial strength and risk management frameworks to manage regulatory developments without materially impacting its credit profile. Going forward, improvement in the underwriting performance, particularly by reducing policy surrenders and uplifting business volumes in the individual segment, would further support the Company’s strong credit profile.
For further information on this ratings announcement, please contact 042-35723411 or email at info@vis.com.pk.
Applicable Rating Criteria: Life Insurance Family Takaful
https://docs.vis.com.pk/docs/LifeTakaful-Oct-2023.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf