Press Release

VIS Reaffirms IFS Rating of EFU Life Assurance Limited

Karachi, December 30, 2022: 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 31, 2022.

The assigned rating incorporates EFUL’s market positioning in the life insurance industry. The EFU Group has more than 90 years of operational history in the sub-continent, having commenced operations in 1932. The rating also considers the quality and stability of the Company’s senior management. Currently, no critical position is vacant in the organization. In addition to this, EFUL has a dedicated and independent enterprise risk management (ERM) function. Risk management committee (RMC) meetings are held on quarterly basis and all groups are responsible for risk recognition, assessment and development of controls in their respective areas of operation with sufficient monitoring by ERM.

On the back of strong RoAE and prudent retention, EFUL, over the years, has built sizable capital buffers. During the pandemic, the increase in claims ratio and challenging investment environment had weighed on profitability while dividend payout was stable, due to its resilient balance sheet. In H1’2022, net claims ratio (excluding surrenders and maturities) has improved as Covid-19 claims became negligible, while investment performance is also projected to benefit from higher prevailing benchmark rates, which will bode well for the Company’s profitability over the medium term horizon.

The Company has sizable AUMs, which are managed by a dedicated investment management team. The rating incorporates fund performance of EFUL. On a 5-year basis, the Company’s fund returns have remained competitive, being the median return in conventional segment and above median return in the takaful segment.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 201) or Mr. Arsal Ayub, CFA (Ext: 215) at 35311861-71 (10 lines) or email at

Sara Ahmed

Applicable Rating Criteria: Life Insurance & Family Takaful (March 2022)

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .