Home / This Week / Research / EFU General Insurance’s Takaful business on the rise

EFU General Insurance’s Takaful business on the rise

EFU General Insurance is still very optimistic in 2019 as the management has planned to offer sustainable, profitable growth in a changing and competitive business environment in order to sustain leading position in Pakistan. Furthermore, in the insurance sector of Pakistan, EFU General is the most powerful, trusted brand and pioneer also in China Pakistan Economic Corridor (CPEC).

The financial experts of the company calculated in the annual statement ended December 2018 that the Profit After Tax (PAT) was Rs. 2,171 million as against to Rs. 2,500 million during 2017. The management has suggested a final cash dividend of Rs. 6.25 per share (62.50%) to the shareholders whose names appear in the share register of the Company at the close of business on 16th April, 2019. This cash dividend is in addition to interim cash dividends of Rs. 3.75 per share (37.5%) declared during 2018. The Earning Per Share (EPS) was Rs. 10.86 as compared restated EPS of Rs. 12.50 (restated) previous year.

EFU has no doubt always played a chief role of institution giving the emerging Pakistan insurance sector the leadership, manpower and drive needed to grow and face issues. It is also recorded that in Pakistan, skilled human resource is a main issue facing the insurance industry. Therefore, the management intends to continue investing in people and making EFU General the best place to build career and developing the competencies and skills of their employees along with technical abilities to innovative products in the market.

res2gph1

Moreover the financial experts of the company showed that the written direct premium and Takaful business inside the country of Rs. 20.8 (inclusive of Rs. 2,033 million of Takaful contribution) as against to Rs. 20.4 billion (inclusive of Rs. 1,567 million of Takaful contribution) during 2017, while the Net Premium Revenue (including Takaful net contribution revenue) was recorded to Rs. 9.1 billion as against to Rs. 8.7 billion (including Takaful net contribution revenue) during 2017. Underwriting profit was Rs. 1.31 billion as against to Rs. 1.63 billion during 2017. It is also recorded that the management hopes that its strength lies in customer trust and satisfaction. Over eighty-six years of EFU’s existence points towards the fact, the quality of service, customer satisfaction and employees’ motivation are the key sections where the company has always taken necessary measures for improvement.

Statistics recorded in the financial statement of the company showed that the written premium was recorded to Rs. 11,257 million as against to Rs. 11,721 million during 2017. Claims as percentage of net premium revenue were 30 percent as compared to 28 percent during previous year. The underwriting profit for the year was Rs. 543 million as against to Rs. 635 million in 2017.

EFU General Insurance continues to attain latest technology to complete the issues of the sector and give better services to customers. The company acquired Huawei Dorado5000 V3 – Fastest All Flash Storage and latest Huawei 2288H V5 Servers along with Oracle Virtualization Manager.

The management of the company also implemented high-end and redundant switching in the Data Center for enhanced services to customers.

 

The financial experts also recorded that the written premium grew by 9 percent to Rs. 2,426 million as against to Rs. 2,235 million during 2017. Claims as a percentage of net premium revenue were registered 38 percent as compared to 36 percent during previous year and the underwriting profit was recorded to Rs. 236 million as against to Rs. 287 million during 2017.

The Company’s workmen’s compensation act offers no-fault advantages in the event of death or injury to a ‘Workman’ (normally with an income of less than PKRS 3,000 per month) because of an accident at work. Employers can protect themselves in case they are required to pay under the terms of this act for injury to an employee by purchasing company’s workmen’s compensation policy.

Statistics also showed that the written premium was recorded to Rs. 3,492 million as against to Rs. 3,452 million during 2017. Claims as percentage of net premium revenue were recorded to 50 percent as compared to 48 percent during last year and the underwriting profit was also recorded to Rs. 241 million as against to Rs. 430 million during 2017.

Furthermore, the written premium for the year grew by 12 percent to Rs. 1,605 million as against to Rs. 1,430 million during 2017. Claims as percentage of net premium revenue remained constant as against in 2017 at 34 percent. The underwriting profit for the year was recorded to Rs. 287 million as against to Rs. 280 million in 2017.

The written contribution revenue for the year was recorded to Rs. 2,033 million as compared to Rs. 1,567 million in the previous year; while net contribution revenue was recorded to Rs. 1,559 million as against to Rs. 1,088 million during 2017.

res2gph2

Moreover, participants’ Takaful Fund Surplus for the year was registered to Rs. 154 million as against to Rs. 112 million during 2017 and profit from operator’s funds for 2018 was Rs. 81 million as against Rs. 47 million in 2017.

Today, EFU General Insurance has a time honoured tradition of creating and nurturing strategic alliances and the company partner with some of the highly regarded re-insurers on the world insurance horizon. As Pakistan’s largest general insurance company, the management is insurer to not only individuals and business owners, but also to mammoth transnational infrastructural projects.

Check Also

Market Indicators

Market Indicators

Market indicators are a series of technical indicators used by traders to predict the direction …

Leave a Reply