Press Release

VIS Reaffirms IFS Rating of Allianz EFU Health Insurance Limited

Karachi, April 20, 2022: VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength (IFS) rating of ‘A+(IFS)’ (Single A Plus IFS) assigned to Allianz EFU Health Insurance Limited (Allianz EFU). The IFS rating of ‘A+(IFS)’ denotes strong capacity to meet policy holders and contract obligations. Risk factors are low, and the impact of any adverse business and economic factors is expected to be small. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on March 31, 2022.

The assigned rating derives strength from the sponsor profile of Allianz SE, a Germany-based financial services provider and holding company of the Allianz Group (Allianz SE rated AA by Standard & Poor’s and A+ by A.M.Best). Allianz Group is present in more than 70 countries with major operations in Europe.
The assigned rating incorporates the market positioning of AEFU as a small-medium sized insurer, holding a market share of 2.4% as of 2020. AEFU is primarily engaged in underwriting health business, which generally features higher loss ratios than other business lines. Resultantly, the Company’s combined ratio exceeds peers and the overall industry in general.
AEFU’s financial risk profile is underpinned by adequate liquidity, given close to full coverage of net technical reserves. However, leveraging levels of the Company are elevated, subsequent to posting slight contraction in 2020. The elevated leverage will continue to be a rating constraint for Allianz EFU. The assigned ratings remains dependent on maintaining liquidity, capitalization and underwriting profitability in line with the threshold for the assigned rating.
For further information on this rating announcement, please contact Mr. Arsal Ayub, CFA (Ext: 216) or the undersigned (Ext. 201) at 021-35311861-70 or email at

Javed A. Callea

Applicable Rating Criteria: General Insurance (March 2022)

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