In 1990, the Government of Pakistan reopened the life insurance business to the private sector organizations and EFU Life Assurance Limited started operations in November 1992 as the first private sector life insurance company.
In early 1993, EFU Life commenced its Group life insurance business and by March 1994, the company began writing its individual life business. Now, with over 2-decade passed, the firm has greater than 175 branches and a dedicated sales force of 4,000; it also provides insurance products by other channels like bancassurance. EFU Life has seen a solid double-digit growth in its net premiums in each of the past 10-year. Not only EFUL is the oldest private sector company in its market, it also has become the first conventional insurer to receive a license for window Takaful operations from SECP earlier the year 2016.
Takaful has the potential to be a game changer in the country’s insurance industry. The demand for Shariah-compliant products might not be huge at the moment, but they have great prospects in the next 5-year. It is believed that Takaful operations would account for 15-20 percent of the firm’s business by 2020.
EFU LIFE ASSURANCE IN PSX DURING JANUARY, 2017
EFU Life assurance’s total premium income was Rs16.78 billion during the first nine months closed 30 September 2016 (2015: Rs22.67 billion). New individual life regular premium income was Rs2.58 billion (2015: Rs2.24 billion), a rise of 15.3 percent. Renewal premium was Rs9.27 billion (2015: Rs8.1 billion) a rise of 14.5 percent. Inclusive of renewal premium, the total individual life regular premium business rose by 14.7 percent to Rs11.86 billion (2015: 10.34 billion). Group benefits business increased by 13.9 percent at Rs1.72 billion (2015: Rs1.51 billion).
The management had introduced its window takaful operations under a dedicated brand name Hemayah in February 2015. The total family takaful business was Rs1.33 billion out of which Rs1.29 billion was from Individual family takaful business while Rs.31 million was from Group Family Takaful.
The management predicts this line of business to increase further during 2016. EFU Life assurance had a Profit after Tax of Rs1.09 billion (2015: Rs984 million). The Earnings per Share is Rs10.92 (2015: Rs9.83).
TELENOR’S EASYPAISA & EFU LIFE
Presently Telenor’s Easypaisa inks a deal with EFU Life Assurance Ltd in December 2016, under which Easypaisa will extend its services to get faster insurance premium collection from EFU Life’s clientele by Easypaisa’s wide network in the country.
EFU life assurance no doubt a leading private life insurance provider in Pakistan has been conferred with the CSR Award 2016 in the category of social impact at the 5th Corporate Social Responsibility Awards, organized by the professionals network and ethical business update (EBU).
The award recognizes the attempts of the firms which are at the helm of social responsibility efforts in the country. It added that EFU Life has been in the forefront in promoting and contributing to the causes of healthcare and education. The company also has been honored with the World Finance Global Insurance Award for the Year 2015 in the 7th Annual Global Insurance Awards by World News Media.
The management fruitfully secured the top position of the life insurance sector in the country. Since 2007, World Finance has been celebrating achievement, innovation and brilliance in their yearly awards. The award programs are tailored to offer a comprehensive analysis of the very best in each market. The award is a testament of the Company’s commitment to offer quality services, deliver customer-centric experiences and passion to attain excellence in all spheres of its business operations.
The achievement affirms EFU Life’s dedication towards understanding the clients’ evolving needs and offering unparalleled solutions to them.
The arrival of takaful to the mix has opened a new avenue of growth for the insurance industry. It is only the starting of Shariah-compliant products in the insurance market; in a couple of years’ time they would start contributing in a meaningful way to the company’s top line and add to its growth. EFU Life looks well positioned to make the best of this opportunity, given its experienced management and industry-leadership position. New distribution channels also make the picture rosier for the likes of EFUL.