Press Release

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

Karachi, December 29, 2010: JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength (IFS) Rating of EFU Life Assurance Ltd (EFUL) at ‘AA-’ (Double A Minus). Outlook on the assigned rating is Stable.

The rating incorporates the strong franchise of EFUL reflected by a sizeable market share. While premium base remained stagnated in 2009, growth has been observed in the on-going year. Business generated through bancassurance has contributed positively to the growth achieved by the company. The company is actively engaged with its bank partners to bring improvement in persistency rates of this line of business. As a distribution channel, bancassurance may continue to increase in importance over time. Alongside, EFUL plans to continue its strong focus on further developing its own sales force as an important source of business generation.

Over the last two years, the risk of investments in the statutory funds has been re-profiled. This is reflected by a higher proportion deployed in government securities. Moreover, exposure has been built in short term government paper in the on-going year, to reduce the impact of interest rate changes on portfolio valuation. In-house investment management capabilities have also been enhanced, as also other support functions including internal audit and controls. Return on investments vis-à-vis peers will continue to be tracked by JCR-VIS, as these may impact the company’s ability to attract fresh business over the long term.

Liquidity and capitalization indicators remain strong. The rating reflects high capacity to meet policyholder obligations.

For further information on this rating announcement, please contact Mr. Syed Ziauddin Ahmed (Ext: 508) or Ms. Sobia Maqbool, CFA (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 2010 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .