EFU Group continues to enjoy leadership in insurance industry General and Health while securing second position in Life Insurance. In window Takaful, EFU General Insurance remained leader with 25 percent market share, with Participants' Takaful Fund and Operators' Fund both in surplus. This furnishes strength to the brand and ability to serve diverse client needs and ability to capture large client base in the market.
The company has posted strong profitability from underwriting and investment portfolio. The rating interprets the company's vision to lead both in terms of size and profitability. Sponsors (Bhimjee family and JS Group), board and the management are aligned on this, enabling a better focus in strategy and efforts. Increasing emphasis on customer service including concerted efforts to bring efficacy in claims settlement process with support from technology helps in sustaining market share. Strong liquidity and sound cash flow generation ability provide strength to the rating. The business strategy, going forward, is envisaging substantial benefit emanating from CPEC related projects and overall dynamism in the economy.
The rating is dependent on sustained competitiveness of the company. Keeping in view heightened competition in the industry, increase in insurance pie and penetration thereof is a prerequisite for sustaining the growth rate particularly for large companies. Claim settlement process with high transparency and customer convenience is required to boost policy holder confidence and growth in business volume.-PR