VIS Reaffirms IFS Rating of EFU Life Assurance Ltd to AA++

Karachi : EFU Life Assurance Ltd., a leading Life and Health insurer, Family Takaful operator and Retirement Solutions provider, has maintained its strong financial standing as VIS Credit Rating Company Limited reaffirmed the Company’s Insurer Financial Strength (IFS) Rating at ‘AA++’ (Double A Plus Plus) with a Stable Outlook. The rating signifies very strong capacity to meet policyholder and contractual obligations. Risk factors are very low, and the impact of any adverse business and economic factors is expected to be very small. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on March 6, 2025.
The rating assigned to EFU Life takes into consideration the Company’s dominant market position in the private life insurance industry. The rating also derives support from a strong sponsorship profile comprising of the EFU Group, Pakistan’s largest insurance conglomerate,
the Company’s public listed status (allowing focus on regulatory oversight, transparency and governance) and considers the quality and stability of the Company’s senior management.
The assigned rating further considers the growth manifested in the Gross Written Premium (GWP) across all Retail and Corporate segments during 2025 as well as various optimization measures taken across the board. The Company demonstrated resilient financial performance, supported by disciplined financial management and prudent operating practices.
The rating also incorporates sound reinsurance arrangements with renowned international reinsurers with appropriate risk retention on net account to remain within limits specified by the risk appetite of the Company. Moreover, supported by sufficient liquid assets along with adequate capital coverage of claims, the Company’s liquidity and capitalization levels remained satisfactory. The Company maintains adequate financial strength and risk management frameworks to manage regulatory developments without materially impacting its credit profile.
Earlier this year, EFU Life was also assigned the highest Management Quality Rating of ‘AM1(p)’ with a Stable Outlook, reflecting the Company’s strong governance framework, experienced leadership, and robust investment management capabilities.