Press Release

JCR-VIS Assigns Initial Insurer Financial Strength Rating to Allianz EFU Health Insurance Limited

Karachi, March 20, 2017: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned initial Insurer Financial Strength (IFS) rating of ‘A+’ (Single A Plus) to Allianz EFU Health Insurance Limited (AEFU). Outlook on the assigned rating is ‘Stable’.

The rating assigned to AEFU 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). The group is present in more than 70 countries with major operations in Europe. Prominent shareholders of AEFU also include EFU Services (Pvt.) Limited.

The company is led by a team of well-qualified professionals possessing rich experience in the health insurance industry. AEFU has exhibited steady growth over the years while maintaining an adequate risk profile. The rating also draws comfort from its pro-rata reinsurance treaty with Pakistan Reinsurance Company Limited. Enhanced focus on underwriting quality has allowed the company to report a healthy bottom line over the three-year horizon. Moreover, given the nature of business, mobilization cost compares favorably to companies in the general insurance industry.

The rating takes into account positive results from underwriting operations and liquidity profile of the institution. Rating is constrained by the competitive environment in which the company operates and concentration in the business profile. With growth in business volumes, leverage indicators of the company have trended upwards. Rating, going forward, will take into consideration improvement in capitalization and dividend policy which provide for a healthy internal capital growth.

AEFU has a structured investment management and oversight mechanism in place. IT infrastructure in place includes an internally developed ERP system and an Oracle database.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 201) or the undersigned (Ext: 207) at 021-35311861-71.

Jamal Abbas Zaidi

Applicable Rating Criteria: General Insurance (March 2017)

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 2017 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .