PACRA Maintains IFS Rating of EFU General Insurance Limit

The assigned IFS rating to EFU General Insurance Limited (“EFU General” or “the Company”) signifies its strong standing in Pakistan’s general insurance sector, supported by reputable sponsors – JS Group and the Bhimjee family. Active involvement of the sponsors on the Board enhances governance and strengthens the policy framework. EFU General maintains a well-established position among the leading players in the market. The Company operates across both conventional and window takaful segments, with the conventional business contributing approximately ~91% to the total Gross Premium Written (GPW). Fire & Property continues to dominate the portfolio (~74% of GPW), followed by Marine (~11%), Motor (~9%), and Miscellaneous (~6%) segments. During CY25, the Company posted a significant growth of ~24% in underwriting results, indicating improved operational performance. Furthermore, higher investment income provided additional support to profitability, leading to a ~24.6% rise in Profit After Tax (PAT). However, careful management of investment income remains crucial to sustain consistent profitability over the long term. The Company’s financial stability is supported by a strong equity base and a diversified investment portfolio, ensuring both liquidity and resilience. Furthermore, strategic reinsurance arrangements with international counterparts strengthen its overall risk absorption capacity. Going forward, EFU General is pursuing a strategic shift towards greater diversification within its product portfolio. Although the overall risk management framework is sound, improving the efficiency of claims management continues to be an area of focus. As part of this outlook, the Company aims to expand into microinsurance offerings, targeting coverage for consumer assets such as mobile phones and laptops, thereby tapping into a broader customer base and enhancing revenue streams. Going forward, sustained enhancement in core business profitability, along with prudent underwriting practices, will remain essential for maintaining stable performance. EFU General’s solid market standing, financial strength, and forward-looking strategies underpin its long-term growth outlook.
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 (~27.17%) and the JS Group(~43.01%). 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.