Shams ul Nisa

EFU General Insurance Limited achieved strong financial growth through strategic investments in equities, government securities, and real estate during the nine months ended September 30, 2024, reports WealthPK.

As a result, EFU has enhanced its profitability while reducing market volatility, solidifying its leadership in the insurance industry through strategic investments aimed at long-term growth and effective risk management. Established on September 2, 1932, EFU General Insurance operates in the non-life insurance sector, offering a diverse range of coverage solutions, including fire and property insurance, marine insurance, motor insurance, and various other specialised policies.

Through its comprehensive portfolio, EFU caters to the diverse risk management needs of individuals and businesses across different industries. The company reported a 40% rise in investment income in 9MCY24, supported by a well-diversified portfolio that helped mitigate market risks. Furthermore, EFU General Insurance reported an increase in written premiums, including a significant Takaful contribution, highlighting its dedication to market diversification.

Net premium revenue experienced strong growth of 22%, reaching Rs10.59 billion, driven by EFU’s strategic underwriting initiatives and enhanced customer engagement. The company expanded its market presence while maintaining high service standards, strengthening its reputation among clients seeking reliable insurance solutions. The company achieved a significant turnaround in its underwriting profit, reporting a substantial rise to Rs1.81 billion from Rs227 million in 9MCY23.

This improvement was driven by a notable reduction in the claims’ ratio, which dropped from 50% to 39% of net premium revenue. The company’s disciplined risk management strategies, including stringent claims assessment and enhanced operational efficiencies, have been instrumental in minimising losses and boosting profitability. EFU General Insurance remains confident in its growth prospects despite economic challenges.

As Pakistan’s economy shows signs of recovery through debt restructuring and fiscal reforms, the company expects renewed consumer confidence to boost demand for insurance products. EFU is enhancing digital capabilities and optimising operations, ensuring long-term growth and competitiveness in the evolving market to capitalise on this momentum. EFU General Insurance has reinforced its position as a leader in the industry through resilience and strategic planning.

The company has achieved significant profitability while setting new standards for excellence by capitalising on higher premiums and prudent investments. It continues to innovate and adapt to evolving market conditions, delivering value to its stakeholders while meeting the changing needs of customers across Pakistan. The company is well-positioned for sustained success in the years ahead with a strong financial foundation and a clear growth strategy.

Credit: INP-WealthPk