INSURANCE SECTOR IN PAKISTAN

PROF. DR. KHAWAJA AMJAD SAEED (feedback@pgeconomist.com)
Feb
15 - 21, 2010

Listed financial sector in Pakistan consists of six segments namely mutual funds, modarabas, leasing, investment banks, commercial banks, and insurance.

The misfortune is that insurance sector has not met an opportunity to exploit its potential. One wonders as to how long it will take to develop insurance culture in Pakistan.

Apathy of previous governments, weak insurance setups in public sector, and lack of attention on human resource development are major factors resulting in low-level contribution of insurance in the socio-economic development of our country. The following quantitative analysis is a wakeup call for all stakeholders.

LISTED COMPANIES

PARTICULARS NUMBER % OF TOTAL
KSE Listed Companies 650 100
Listed Insurance Companies (23 Non-Life + 04 = 27) 27 4.15

PAID UP CAPITAL

PARTICULARS

RS. (BILLION)

% OF TOTAL

Total Listed KSE

816

100

Listed Insurance Companies

13

1.59

PAR VALUE ANALYSIS

PARTICULARS RS. NO. %
Paid up Value (Par Value) 05 02 07
  10 25 93
    Total 100

YEAR OF LISTING

YEAR NUMBER %
1949 02 07
1952-1969 10 37
1980-1989 07 26
  19 70
1990-2009 08 30
Total 27 100

TURNOVER-READY (JULY-DECEMBER 2009 "6 MONTHS")

PARTICULARS RS. (BILLION) %
KSE Total Turnover 22 100
Listed Insurance Companies Turnover 0.23 1.04

MARKET CAPITALIZATION

PARTICULARS RS. (BILLION) %
All listed shares 2,851 100
Listed Insurance Companies Turnover 76 2.67

PAR VALUE ANALYSIS

PARTICULARS NUMBER %
Below Par 07 26
Par & Above Par 20 74
Total 27 100

GDP SHARE

PARTICULARS $ (BILLION) %
Pakistan 170 100
KSE Listed Market Capitalization 34 20
Listed Insurance Companies Market Capitalization 0.89 0.52

The writer is Principal Hailey College of Banking & Finance, University of the Punjab, Lahore-Pakistan.