PACRA Maintains IFS Rating of EFU General Insurance Limited

The assigned IFS rating to EFU General Insurance Limited (“EFU General” or “the Company”) reflects its dominant position in Pakistan’s general insurance sector, backed by strong sponsors - JS Group and the Bhimjee family. The sponsors’ active representation on the Board contributes to a robust policy framework. EFU General holds an established position among the market leaders. The Company underwrites both conventional and window takaful business, where the conventional business comprises ~92% of the overall Gross Premium Written (GPW). Fire & Property remains the leading segment (~68% of GPW), followed by Motor (~14%), Marine (~12%), and Miscellaneous (~6%) segments. During CY24, the Company recorded a notable increase of ~47.5% in the underwriting results, reflecting improved operational efficiency. Additionally, investment income supported the bottom line, resulting in a ~21% increase in Profit After Tax (PAT). However, prudent management of investment income remains essential to ensure stable profitability over time. The Company’s financial strength is underpinned by a solid equity base and a well-diversified investment portfolio, where ~44% is allocated to government securities, ensuring liquidity and stability. Strategic reinsurance arrangements with international partners enhance its risk-bearing capacity. EFU General has also leveraged technology to streamline claims processing and improve service delivery, supporting market share retention. The Company employs the Solvency II framework as its internal capital model, aligning with the recently implied regulatory standards. While overall risk management is robust, further enhancement of claims management efficiency remains a priority. Looking ahead, continued improvement in core business profitability and disciplined underwriting will be critical to sustainable performance. EFU General’s strong market position, financial resilience, and proactive strategies support its long-term growth prospects.
The Company's rating is dependent on its ability to maintain competitiveness, which is heavily influenced by effective risk management and growth in business volumes, both of which are crucial in the current industry landscape.

About the Entity
EFU General Insurance Limited (“EFU General” or “the Company”) was incorporated in 1932 as a Public Listed Company (listed on PSX). The Company operates as a general insurance company. The ownership of the Company is primarily divided between the Bhimjee Group (~28.21%) and the JS Group(~42.95%). Leading the Board is Chairman Mr. Saifuddin N. Zoomkawala. Mr. Kamran Arshad Inam is the CEO. He is supported by a team of experienced professionals having a long association with the Company.