EFU LIFE ASSURANCE LIMITED

MARIAM NASIR
Manager Research

Nov 19 - 25, 2007

EFU Life Assurance Ltd was incorporated in November 1992 as the first private sector life insurance company. The company commenced writing group life insurance business in early 1993, and by March 1994, the company began writing its individual life business. The Company has a growing branch network of 72 branches through out the country with employee strength of over 1,750. It is the first life insurance company in Pakistan to be awarded the ISO 9001:2000 certification. Currently, EFU Life continues to be the largest private sector life insurance company in Pakistan.

EFU GROUP

EFU is the only insurance group in Pakistan to provide a full range of insurance services. This includes life, health and general insurance. The three companies working under the group are: EFU Life Assurance Ltd, EFU General Insurance Company and Allianz EFU Health Insurance Company. EFU General has over 64 branches situated throughout the country and employs over 1,000 individuals at its Head Office and in the branch network. Allianz EFU Health Insurance Ltd is dedicated to providing health insurance to individuals and corporations. It is a joint venture with Allianz of Germany, one of the largest insurance companies of the world. It is Pakistan's first specialized health insurance provider.

PRODUCTS

EFU Life has a comprehensive range of products which has been developed after extensive research of financial services in western countries such as the United Kingdom. These products are designed to meet the varying needs of EFU Life's clients and offer the best in financial services. The products given below are offered to the individual and on a group basis.

INDIVIDUAL PRODUCTS

GROUP PRODUCTS

Prosperity For Life

Group Accidental Disability Benefit

Education Plan

Fortnightly Income Benefit

Capital Growth Bond

Group Natural Disability Benefit

Savings Plan

Group Critical Illness Cover

Executive Pension Plan

Group Terminal Illness Benefit

Security Plan

Group Loan Insurance

Loan Protection Plan e.t.c

Group Provident Fund Insurance

SUBSIDIARY

EFU Family Takaful Limited has been incorporated as a Company under the Companies Ordinance, 1984, which is the subsidiary company of EFU Life Assurance Limited. This step has been taken to introduce Islamic Insurance products in Pakistan. Keeping in view the right strategy, the proposed Takaful Companies would provide ample scope for offering the General and Family Takaful products according to the Sharia.

FINANCIAL RESULTS

Company's total premium income increased by 38%, from Rs2.348bn in the first nine months of 2006 to Rs3.238bn in the corresponding period of 2007. Individual life regular premium business has continued its upward growth trajectory and this has been made possible due to the increase in the size and better productivity of their sales force, and significant contribution from the bancassurance distribution channel. New individual life regular premium income stood at Rs.778m at the end of the third quarter of the year compared to Rs.499m for the same period last year, an increase of 56%. Profit before tax of the company increased by 50% to Rs.397m whereas profit after tax rose to Rs292m (EPS: Rs.5.84) as against Rs.179m (EPS: Rs.3.59) in the nine month period of last calendar year.

(RS M)

9M/CY06

9M/CY07

CHANGE

Net Investment Income

37.53

119.57

219%

Other Revenue

3.93

2.97

-24%

Expense not att. To Statutory Fund

1.97

3.70

88%

Surplus Transferred from Statutory Fund

225.94

278.34

23%

Profit Before Taxation

265.44

397.18

50%

Taxation

85.80

105.00

22%

Profit After Taxation

179.64

292.18

63%

Earning Per Share (Rs.)

3.59

5.84

63%

FUTURE OUTLOOK

The company continued its tradition of exploring new businesses and went overseas for business opportunities. To cater to the financial planning needs of expatriate Pakistanis, the company has partnered with a significant insurance player in the UAE market. This arrangement will not only help the company to reach out to the non-resident Pakistani population, but will also result in an influx of foreign exchange into the country.