NOVEMBER 22, 2021 12:22 PM (EST)
AM Best Places Credit Ratings of EFU General Insurance Limited Under Review with Negative Implications
Senior Financial Analyst
+44 20 7397 0270
Alex Rafferty, ACA
Associate Director, Analytics
+44 20 7397 0312
Manager, Public Relations
+1 908 439 2200, ext. 5159
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
LONDON - NOVEMBER 22, 2021 12:22 PM (EST)
AM Best has placed under review with negative implications the Financial Strength Rating of B+ (Good) and Long-Term Issuer Credit Rating of “bbb-” (Good) of EFU General Insurance Limited (EFUG) (Pakistan).
These Credit Rating (rating) actions reflect AM Best’s concern regarding EFUG’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), due to uncertainties regarding the company’s estimates of its net retained probable maximum losses (PML) relating to modelled natural catastrophe exposures, and the appropriateness of the company’s reinsurance protection against such events.
EFUG’s management team has initiated a detailed review of the company’s catastrophe exposures, its modelled PML estimates and its reinsurance needs. The ratings are expected to remain under review pending completion of this review, and until AM Best can fully assess the impact of any resulting changes on the company’s risk-adjusted capitalisation and balance sheet strength assessment.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.