UNPRECEDENTED GROWTH OF 40PC IN LIFE INSURANCE LANDMARK ACHIEVEMENT BY STATE LIFE

AMANULLAH BASHAR
(feedback@pgeconomist.com)
Apr 19 - 25, 2010

State Life Insurance Corporation of Pakistan (SLIC) has successfully secured Rs1.68 billion as First Year Premium (New Business) during the 1st Quarter of 2010 showing an increase of 35.32 per cent.

In the year 2009 SLIC secured record First Year Premium of Rs6.96 billion showing an unprecedented increase of 40 per cent. In the year 2009 State Life has also paid Rs6.92 billion on account of claims thus providing financial protection and savings to thousands of valued policyholders and their families nationwide.

This was stated by Shahid Aziz Siddiqui, Chairman, State Life on the occasion of State Life Convention 2010.

Shahid Aziz Siddiqui said that State Life is one of those public sector organizations which are not a burden on the national exchequer. In fact State Life is playing a pivotal role in providing financial protection to million of families through life insurance. Shahid Aziz Siddiqui informed that State Life has paid Rs1.15 billion as Death Claims to 6,600 families of policyholders and Rs5.77 billion as Maturity claims to more than 47,000 families which provided financial relief to policyholders and their families.

Shahid Aziz Siddiqui informed the media that Renewal Premium also touched the figure of Rs15.36 billion showing an increase of 21.43 per cent. The Marketing force of State Life also extended financial protection to 5,26,000 new families nationwide during the year 2009. Chairman State Life also informed that Corporation's Life Fund which is the key indicator of its financial stability has now reached to Rs202 billion. Replying to a question Shahid Aziz Siddiqui informed that State Life is considering to launch some new life insurance plans, so that people can invest their small savings in the life insurance policies.

The work is also in progress in Bancassurance & Takaful. He informed that recently the National Assembly Standing Committee for Commerce has also endorsed that State Life is one of those public sector institutions which are successfully playing their role in the national economy. He informed that State Life is a very sound and stable financial institution which is also evident by the fact that it has been assigned AAA rating by PACRA.

Siddiqui informed that State Life's Business in Gulf Region is also improved and in the year 2009 it has procured new premium around 32 lac US $ showing 10.42 per cent increase over the previous year.

Replying to a question Chairman State Life has informed that Corporations' Investment Portfolio is also progressing and in the year 2009 the investment income has reached to Rs21.38 billion showing an increase of 11.69 per cent. Chairman said that State Life is one of the largest Real Estate owners of the country. It has wisely invested the policyholders money in sound Real Estate Projects. This not only provides earnings to the corporation in shape of rent but also provides space for its offices throughout Pakistan. In the year 2009 it has secured Rs335 million as net income from its real estate operations. The management has also launched construction projects of State Life buildings at Sargodha, Sialkot and Gujranwala to provide quality space for business promotion in these cities. This is in addition to the eighteen floor under construction Islamabad Towers.

Syed Arshad Ali, Allah Rakha Aasi, and Shoaib Mir Memon Executive Directors State Life and senior corporate executives were present on the occasion.

Syed Arshad Ali, Executive Director Marketing & Group & Pensions while presenting the performance of his portfolios has informed that in the Group Life side in the 1st Quarter of 2010 it has so far secured new premium of Rs.627 million while in the year 2009. It has secured Rs3.70 billion premium from 1323 groups which also include 227 new groups.

He further said that in individual life business State Life's all four Regions have shown exemplary performance. State Life's Multan, Central, Southern and Northern Regions has shown a record increase of 55.92 per cent, 43.65 per cent, 36.33 per cent, and 22.44 per cent respectively.

Executive Director (Marketing) said that a strategy is being chalked out for the redressal of policyholders' grievances. However, he added that there is a sharp decline in the complaints from the policyholders and their families. Responding to media query the Executive Director Marketing said that payment of claims is delayed due to the non submission of necessary policy documents by the policyholders and their beneficiaries while lodging claims. Earlier, Shahid Aziz Siddiqi congratulated the marketing force and top business leaders on securing their business targets in 2009 and stress that better services be provided to the valued policyholders.

Syed Arshad Ali, Executive Director (Marketing) and S.H. Kazmi, Divisional Head (Marketing) congratulated the delegates of State Life Convention 2010. Shields and Awards were distributed amongst the top performers.

PAKISTAN'S LIQUID FOREIGN RESERVES POSITION

The total liquid foreign reserves held by the country stood at $ 15,048.2 million on 10th April, 2010.

The break-up of the foreign reserves position is as under:-

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

$11,154.8 million

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

$3,893.4 million

iii) Total liquid foreign reserves:

$15,048.2 million