LEASING & INSURANCE

S.M. ABBAS ZAIDI, S.KAMAL HAYDER KAZMI,
Research Analyst
, PAGE
Dec 14 - 20, 2009

INSURANCE SECTOR OF PAKISTAN
(Rupees in '000)

NAME OF COMPANIES PRE-TAX PROFIT PROFIT AFTER TAX E.P.S (RUPEES) PAID UP CAPITAL SHR.HOLDERS EQUITY INVESTMENT TOTAL ASSETS
Adamjee Insurance 587,055 -   1,124,586 8,924,485 7,630,384 19,429,546
Agro Gen. Ins. Co. - - - - - - -
Alfalah Ins. Co 969 (4,324) (0.19) 230,000 257,792 232,829 943,563
Alpha Insurance 5,316 3,923 0.24 161,920 236,511 69,208 486,582
Asia Insurance 13,997 8,984 0.56 160,000 192,553 5,887 388,425
Askari Gen. Insc. (38,831) (38,851) (1.91) 203,775 257,105 483,116 1,348,947
Atlas Insurance 107,266 82,841 2.47 335,559 641,748 567,271 1,514,293
Capital Insurance - - - - - - -
Central Insurance (1,001,429) (1,005,205) (49.51) 203,039 3,163,407 3,147,464 3,313,802
Century Insurance (38,579) (53,991) (1.18) 457,244 867,968 670,747 1,287,477
Cooperative Ins. 4,044 4,044 - 160,000 169,729 6,018 939,688
Crescent Star (22,349) (22,839) (1.89) 121,000 86,809 41,809 271,535
East West Insc. (335,462) (338,611) (14.82) 228,526 528,223 459,782 908,296
EFU Gen. Ins. Ltd. 202,923 139,884 1.22 1,150,000 9,872,077 11,753,031 23,019,612
Excel Insurance (17,707) (17,707)   160,000 164,047 142,875 212,365
Habib Insurance ** 51,389 47,468 1.18 400,403 666,269 766,678 1,499,972
IGI Insurance 775,186 661,262 11.05 598,689 11,417,978 12,149,431 13,257,503
New Hampshire Ins. 39,081 25,854 - - - 780,973 1,898,849
New Jubilee Ins. 318,777 255,637 3.88 659,148 2,220,179 1,985,744 6,869,279
Pakistan Gen. Ins. 98,454 98,558 4.93 200,000 366,120 18,325 565,370
PICIC Insurance 21,521 - 0.61 350,000 230,477 40,984 1,020,398
Premier Ins. ** (72,307) (73,467) (2.78) 263,323 1,647,530 1,421,179 2,774,354
Reliance Insurance 23,067 17,567 0.70 252,002 372,794 263,123 947,487
Saudi Pak Ins. (3,173) (3,522) (0.11) 325,00 197,209 95,022 633,727
Security Gen. Insc. (518,037) (521,487) 0.00 680,625 5,943,172 6,470,302 7,035,653
Shaheen Insurance 15,366 11,348 0.65 175,000 219,135 186,535 917,057
Silver Star Insc. 56,082 50,492 2.39 210,937 371,590 32,816 559,526
TPL Direct Ins. (4,069) (4,069) (0.13) 310,000 207,585 11,401 415,798
UBL Insurer (67,214) (68,484) (1.37) 300,000 85,940 96,482 706,134
United Ins. 93,194 88,745 2.57 345,000 572,629 49,317 884,992
Universal Ins. (2,863) (883) (0.04) 210,000 256,031 89,487 739,906

LEASING SECTOR IN PAKISTAN (Rs. mn)

INDICATORS 2006 2007 2008
No. of Companies 29 27 25
Paid up Capital 12,185 13,182 17,448
Reserves 8,599 7,877 8,477
Total Equity 20,784 21,059 25,925
Investment in Lease Finance 75,151 72,908 71,597
Investments 21,687 22,817 29,896
Borrowings 78,882 83,196 90,792
Revenues 14,665 15,028 16,907
Operating Expenditure 5,009 5,822 5,779
Financial Charges 7,419 8,467 8,954
Taxation 193 91 411
Net Profit 2,044 636 2,094
Cash Dividend 900 961 884
Total Assets 123,501 128,315 136,569

GROWTH IN CONSUMER FINANCING (% )

PORTFOLIO JULY 2007 JAN 2008
Mortgage Loans 15.5 17.6
Credit Cards 19.2 6.9
Auto Finance 8.0 6.0
Personal Loans 7.9 3.0
All 10.4 6.6
Source: SBP. Second Quarterly Report for FY 08

CONSUMER FINANCE - SHARE IN TOTAL LOANS

YEARS BN RS PERCENT
2004 130 9
2005 330 12.8
2006 380 13.8
2007 400 14
2008 300 12

ASSET COMPOSITION OF THE FINANCIAL SECTOR (RS. MILLION)

. 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Investment Banks 27,001 37,936 35,568 51,041 54,527 41,458 58,017
Modaraba 17,456 15,973 18,026 21,572 23,927 25,186 29,703
Leasing 46,948 46,842 44,806 53,635 63,999 63,956 65,920
Discount Houses 1,527 1,987 1,341 1,504 1,834 1,417 0
Venture Capital Companies 272 854 1,005 3,200 4,131 4,061 3,760
Mutual Funds 29,094 57,180 103,080 136,245 177,234 313,661 339,718
Total Assets 122,298 160,772 203,826 267,197 325,652 449,739 497,118
. CY 02 CY 03 CY 04 CY 05 CY 06 CY 07 CY08*
DFIs 68,729 78,803 94,752 107,811 116,939 97,700 84660
Housing Finance 22,434 21,562 19,493 18,657 19,702 17,742 18996
Insurance 129,066 150,330 172,992 201,665 244,657 323,530 N.A.
Total Assets 220,229 250,695 287,237 328,133 381,298 438,972 103656

CONSUMER FINANCING (Rs. billion)

CONSUMER FINANCING

CHANGE DURING JUL-MAR

FY 08

FY09

1.House Building 10.2 -3.3
2.Transport i.e. purchase of cars etc 3.4 -19.6
3.Credit cards 1.8 -6.8
4.Consumer Durables 0.7 -0.2
5.Personal Loans 0.4 -25.3
6.Others 0.1 0.3
Total 16.6 -54.9

STRUCTURE OF INTEREST RATES IN PAKISTAN (%)

MONTHS/ YEARS RATE
18-Nov-02 7.5
11-Apr-05 9.0
29-Jul-06 9.5
1-Aug-07 10.0
31-Jan-08 10.5
23-May-08 12.0
30-Jul-08 13.0
13-Nov-2008 15.0
15-Aug 13.00
25-Nov 12.50