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EFU General Insurance’s (PAT), underwriting profit up

No doubt, some economic managers of Pakistan urged that the general insurance sector’s performance is strongly correlated to economic growth. Economic activities remained more or less the same during the year, they said.

Although, with relatively stable law and order situation in Pakistan, GDP increased by 5.3 percent during FY2016-17. The economic experts also mentioned that Standard & Poor’s have maintained our Pakistan’s credit rating (B) with stable outlook. They have also mentioned that Pakistan’s overall macroeconomic landscape continued to strengthen during the last fiscal year as GDP growth rate reached to 10-year high. Furthermore, the services sector continued its strides by recording 6 percent growth followed by 5 percent growth in industrial sector.

Almost all the critical economic variables showed sustained progress amid strong domestic demand, recovery in agriculture sector and robust industrial activities. Inflation levels remained benign in the whole year owing to stable exchange rate, favorable commodity prices and enhancing supply side dynamics. Economic managers have also identified that Pakistan’s general insurance sector is poised to undergo rapid growth over the next decade given favorable demographics, rising urbanization and more importantly, the emerging industrial sector.

Year Profit Before TaxProfit After Tax
Source: EFU General Insurance Limited

Given the insurance sector’s potential for expansion and growth, EFU General Insurance Limited (the Company) is expected to embark upon growth path in Pakistan’s general insurance sector. The Company one of the few Pakistani organizations run totally by professional management and highly motivated field force. Historically the Company was incorporated in September 1932 and now it provides a full range of insurance services to fulfill the needs of all of its clients being commercial and individual clients.

EFU General Insurance’s product portfolio includes Fire and Property Damage, Marine, Aviation and Transport, Motor, Miscellaneous, Value Added Services and Takaful.


In the Eighty Fifth Annual Report of the Company ended December 31, 2017, financial experts of the company mentioned that the EFU General Insurance’s profit-after-tax (PAT) for the year 2017 was Rs2.34 billion as against to Rs2.39 billion to the corresponding period last year 2016. The Earnings per Share (EPS) was recorded Rs11.72 as compared to Rs11.96 previous year. In the report, it is also mentioned that the EFU General Insurance Limited created history by writing Rs20.4 billion Direct Premium inside Pakistan (inclusive of Rs1,567 million of Takaful contribution) as against to Rs17.2 billion (inclusive of Rs1,095 million of Takaful contribution) in 2016, overall growth of 19 percent, while the Net Premium Revenue (counting Takaful net contribution revenue) was recorded Rs 8.7 billion as against to Rs7.8 billion (counting Takaful net contribution revenue) during the corresponding period last year. Furthermore, underwriting profit was Rs1.63 billion as compared to Rs1.79 billion in 2016.

Fire & Property

In the report it is mentioned that the written premium rose by 29 percent to Rs11,721 million as against to Rs9,101 million during the same period last year. Claims as percentage of net premium revenue were 28 percent as compared to 21 percent in 2016. The underwriting profit for the year was Rs634 million as against to Rs670 million during the corresponding period last year.


Marine, Aviation & Transport

Financial experts of the company also mentioned in the annual report of the company that the written premium rose by 2.7 percent to Rs2,235 million as against to Rs. 2,176 million during the same period last year. Furthermore, claims as a percentage of net premium revenue were recorded 36 percent as compared to 35 percent during the same period last year and the underwriting profit was Rs287 million as against to Rs338 million in 2016.


The Company’s experts mentioned that the written premium rose by 2.3 percent to Rs3,452 million as against to Rs3,374 million during the corresponding period. Moreover, the claims as percentage of net premium revenue was registered 48 percent as against 47 percent during 2016 and the underwriting profit was Rs428 million as against to Rs508 million during last year.


The annual report also exhibited that the written premium for the year was registered to Rs1,430 million as against to Rs1,449 million during last year. Claims as percentage 27.33 percent of the private non-life insurance sector business in the country based on the data showed by The Insurance Association of Pakistan.



Insurance is a risk transfer mechanism whereby the individual or the business enterprise can shift some of the uncertainties of life on the shoulder of the other. All the people will desire to live a cleaner, healthier, comfortable and easy life. To meet this requirement different enterprises produce and provide goods and services. Traditionally, the EFU name in Pakistan has become synonymous with progressiveness and prompts claim settlement and now the EFU being the largest insurance group provides a full range of general, life and health insurance services.

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