Press Release

JCR-VIS reaffirms IFS Rating of EFU Life Assurance Ltd at AA-

Karachi, October 9, 2009: JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength (IFS) Rating of EFU Life Assurance Limited (EFUL) at ‘AA-’ (Double A Minus). Outlook on the assigned rating is Stable.

With business momentum continuing in 2008, EFUL has been able to consolidate its market share in the life insurance market. EFUL is managed by a seasoned team of professionals, who have exhibited their ability to respond to market needs by adding variety to their product offering. The product range covers various target markets including savings, child financial planning, retirement, personal accident and Islamic products. The company has also made significant investment in technological infrastructure, which has enabled better client servicing.

EFUL primarily uses its own sales force to generate business, though proportion of business solicited through bancassurance partners has also been increasing. EFUL was consistently able to achieve high levels of persistency rates from its own sales force; however, persistency levels registered from bancassurance channel may need to be improved.

The business mix of EFUL’s individual life business is dominated by investment linked products, where returns were affected by the adverse stock market performance in 2008 along with the increase in interest rates resulting in revaluation losses on fixed income securities. On a medium to long term scale, the funds managed by EFUL have however generated healthy returns and have played a critical role in cementing the franchise value of EFUL. The impact of investment performance in 2008, if any, on future business generation ability will be monitored.

While operating leverage has trended upwards on account of growth in business volumes and decline in equity base, overall capitalization levels are still sound and ability to meet policyholder holders’ obligations is also considered strong.

For further information on this rating announcement, please contact Mr. Syed Ziauddin Ahmed (Ext: 508) or Ms. Sobia Maqbool (Ext: 506) at (+92-21) 35311861-70 or fax to (+92-21) 35311873.



Faheem Ahmad
President & CEO

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 2009 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .