JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength (IFS) rating of EFU General Insurance Limited (EFUG) at 'AA' (Double A). Outlook on the assigned rating is stable. EFUG is positioned as one of the largest private sector insurers operating in the country.
The company holds more than 30 percent of the market share and expects to maintain its stature in-spite of a difficult macroeconomic environment. The management of the company comprises competent executives from the industry, who have been associated with EFUG for an extensive time period.
Over the last two years, the company has registered a reduction in the proportion of motor portfolio, which is expected to continue in 2009. The management, however, expects this to be offset by growth in other principal business lines.
Furthermore, the management does not plan to take any fresh exposures in the equity market and will largely be deploying excess liquidity over ensuing months in alternative channels. Also forming a significant portion of the investment portfolio is the company's holding in EFU Life Assurance Limited, which is a long term strategic investment
As per management, trends in underwriting performance have shown improvement over 2008. Furthermore, premium collection efforts are also expected to enable the company to maintain insurance debt vis-a-vis gross premium at a level commensurate with assigned ratings.-PR