Efu life assurance: JCR-VIS upgrades rating

KARACHI: JCR-VIS Credit Rating Company has upgraded the Insurer Financial Strength (IFS) rating of EFU Life Assurance to ‘AA’ from ‘AA-’. The outlook on the rating is ‘stable’. According to a press release, the rating reflects the company’s strong balance sheet footing that has further increased on account of continuous growth in regular premium unit-linked policies and adequate persistency of the same, providing EFU Life a stable stream of renewal business. Realising the importance of high persistency level, the management has established a ‘conservation setup’ responsible for making efforts towards reinstatement of lapsed policies, this has resulted in improvement in overall persistency rate in 2012. The rating takes into account EFU Life’s strong capitalisation level vis-a-vis the nature of risks underwritten. With bulk of the business generated by unit-linked policies, the asset risk stands transferred to the policyholders particularly for policies with cash values exceeding the sum risk assured.

Published in The Express Tribune, April 4^th, 2013.

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