June 23 - 29, 2008

Adamjee Insurance, which has positioned itself as a leader in general insurance, especially health insurance, is actively preparing to enter into Islamic Insurance (TAKAFUL) business as well as in Life Insurance. These two segments are considered as unexplored area in insurance business because the existing stakeholders in the field have not yet achieved an optimum level in this country of over 160 million plus population.

Informed sources told PAGE that the management of Adamjee Insurance is not of the view to introduce Islamic Insurance product through a separate window like other companies rather planning to enter this what they called it as an unexplored area by establishing a separate entity.

The time frame, however, for launching the new entity in Islamic Insurance has yet to be declared by the management of the company


Adamjee Insurance has given end-June 2008 as the deadline to start its Life insurance business. In this regard, the company is collaborating with an African company (Hollard). As per the management, the break-even level of the business is likely to be achieved in two years against the industry benchmark of five years due to the use of innovative products complemented by the strength of distribution channels. Furthermore, after having life insurance on board, the management is also planning to devise bundle products to the public and bancassurance will be widely used as a distribution channel.

So far, the segment of Life Insurance is dominated by the public sector in Pakistan as the State Life Insurance Company owned by the state despite having huge and strong financial support and backing from the government has miserably failed to deliver except making concentrating its wealth in raising property which now seems its core business instead of introducing and serving the cause of social development through innovative products in life insurance.

Unfortunately, the concept of health cover for the common man is almost a non-existent concept in Pakistan and a large majority of the population runs from pillar for health especially in the face of excessive commercialization of health sector in Pakistan.

Even at the corporate level, the concept of health cover is a vague term and far from practical application. In this backdrop, the Islamic Insurance is heading to capture the huge market by introducing innovative products for health cover for the masses.

Adamjee Insurance, is well focused entity is also taking lead in health cover and setting an example for others sitting on the heap of resources that these funds could be used more productively instead of putting in property business to serve the people struggling for survival within meager resources.

In fact, the private and public partnership can put a spark in the dead heap of resources held by the state life insurance company to give it a meaning for its existence.


In the first quarter of 2008, Adamjee depicted 85% decline in profitability at Rs88million. In this respect, higher underwriting losses were the main reason behind the lukewarm bottom-line performance. Claim ratio of the company recorded at 86% in the period under review versus 52% in the corresponding period of the last year. Only marine insurance was a profitable venture of the company otherwise all other subheads of core business incurred losses in the first quarter 2008.

According to informed sources, fire segment's losses were largely contributed by the claims of Berger and Nova tech. However, earnings of Adamjee will show a growth trend in quarters to come, it is expected.

Underwriting profitability of the company is likely to grow by 64% annually for next 5 years. In 2008, underwriting business of Adamjee is expected to touch PRs304million versus Rs119million in 2007. Claim ratio in 2008 is likely at 70% as against 86% observed in the first quarter 2008. Adamjee is expected to post its full year 2008 profitability at Rs3.4billion indicating earning per share at Rs33.2.

Currently, Adamjee is endeavoring to retain market position as leading non-life insurer Adamjee Insurance enjoys market leadership in Marine and Fire business on the back of an edge of being the largest and soundest in the industry in terms of size and technical know how as well.

The company also owns a well diversified portfolio in its underwriting business. Furthermore, currently, the company is also targeting to become market leader in miscellaneous segment which mainly is occupied by the health insurance.

Adamjee Insurance has placed itself to secure leading position in the health insurance by introducing many new products and technological advancements. Furthermore, Adamjee is also the only company which has issued Magnetic card in retail segment, while all other industry players are still operating with plastic cards. Gross premium is expected at Rs11.6billion in 2008 as compared to Rs9.4billion in 2007. Adamjee insurance is targeting gross premium of Rs1.0billion as against Rs500million observed last year from its Dubai operations.



The organizing committee of Expo Pakistan 2008 of Trade Development Authority of Pakistan (TDAP) discussed the road map of the gala event of EXPO PAK re-scheduled in the last week of October at Expo Center Karachi this year.

Whilst a good response was received for the event earlier scheduled for March 13-16, there were suggestions from international buyers, local exhibitors and trade associations that enhanced benefits and better value may be achieved with rescheduling of event to later in the year for the next buying season.

Being a venture of Government of Pakistan, Expo Pakistan provides an ideal 'showcase' venue for sourcing value products to satisfy consumers the world over. The event displays diversified product range of Pakistan including Textiles, Fabrics & Apparels, Gems & Jewelry, Home & Decor, Food & Ingredients, Information Technology, Leather, Industrial Goods, Sports Goods, Surgical & Pharma and Service sectors.

Expo Pakistan has played a vital role to significantly increase the international demand for Pakistani products and present our country as a promising partner for new business alliances. Since its launch in 2005, Expo Pakistan has grown to become a recognized exhibition in the calendar of international trade events of the region and across the world.

The last Expo event in 2007 attracted participation of over 450 exhibitors from various product sectors and more than 800 foreign buyers from 77 countries, various MOU's were signed between counterpart associations and chambers.


The total liquid foreign reserves held by the country stood at $10,909.6 million on 14th June, 2008. The break-up of the foreign reserves position is as under: -

i) Foreign reserves held by the State Bank of Pakistan:

$8,267.1 million.

ii) Net foreign reserves held by banks (other than SBP:

$2,642.5 million

iii) Total liquid foreign reserves:

$10,909.6 million