VIS Credit Rating Reaffirms IFS Rating Of EFU At AA Plus

VIS Credit Rating Company Limited has reaffirmed insurer financial strength rating of EFU Life Assurance Limited at double A plus

KARACHI, (UrduPoint / Pakistan Point News - 25th Aug, 2020 ) :VIS Credit Rating Company Limited has reaffirmed insurer financial strength rating of EFU Life Assurance Limited at double A plus.

The rating signifies very high capacity to meet policyholder and contractual obligations. Risk is modest, but may vary slightly over time due to business/economic conditions. Outlook on the assigned rating is 'Stable'. The previous rating action was announced on March 15, 2019, said release on Tuesday.

Over the years, growth in life insurance industry has largely been a function of economic activity in the country, depicting a double-digit growth over the last five years. Given the low life insurance penetration in Pakistan, growth in gross premiums is expected to continue, although at a reduced rate mainly in unit linked business, given the uncertainty in economic and political environment.

Given the positive relationship between development of life insurance and economic growth per capita and recent general economic slowdown in the country, growth in business volumes for life insurance is expected to remain subdued in the coming year. Despite these challenges, EFUL reported a gross premium base of Rs. 31.8b (2018: Rs. 30.8b) in 2019. In line with historical trends, growth in premium was largely contributed by its regular premium individual covers.