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EFU General Insurance posts profit in nine months

International statistics identified that the global insurance premiums written stood US$5.2 trillion in 2018. Life premium growth was weak but there was solid performance in non-life. The experts estimated that around 3 percent growth in global premiums in 2019 and next, with a recovery in life based on a strong rebound in China and ongoing steady performance in non-life. Premiums in emerging markets will outperform GDP and their share of the global total will rise from 21 percent during 2018 to 34 percent in 2029. As the shift from west to east continues, it is also estimated that the Asia-Pacific region as a whole will count for 42 percent of global premiums by 2029. Profitability remains under pressure in both the life and non-life sectors. Because of low interest rates, traditional life savings business will continue to drag on sector growth.

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In the developing countries like Pakistan, EFU General Insurance Limited has always offered a full range of insurance service to complete all of its customers’ requirements whether they are commercial or individual clients. It offers fire, engineering,, marine, aviation, motor, miscellaneous services and Takaful covers. Ever since its inception, the company has met the challenges of changing times. It has built a diversified customer base, covered more types of risks than any other, improved the expertise and delivered on the promises.

During the nine months period ended 30 September 2019, EFU General Insurance Ltd showed that the Written Premium (including Takaful) increased by 7 percent to Rs. 17,048 million as compared to Rs. 15,921 million for same period of last year. The Net Premium Revenue for the nine months period was recorded to Rs. 7,140 million as compared to Rs. 7,074 million for the same period of previous year. The overall Claims ratio to Net Premium Revenue was 47 percent as against to 40 percent for the same period of previous year. Presently, with over 85 years of winning the customers’ trust EFU stands as Pakistan’s largest and the oldest general insurer, always ready to go the extra mile to serve better. The company showed that during 2017 EFU counting its Takaful Operations has crossed the Premium/Contribution figure of Rs.20 billion. It is the first general insurance company in the history of Pakistan to attain this milestone. The company also showed that investment income for the period under review grew by 14 percent to Rs. 1,506 million as against to Rs. 1,318 million for the same period of last year. The after tax profit for the period under review was recorded to Rs. 1,293 million as against to Rs. 1,650 million in the same period previous year.

 

EFU General is the most powerful trusted brand and pioneer in the insurance industry as well as in China-Pakistan Economic Corridor (CPEC). It has always played a role of institution giving the emerging Pakistan insurance industry the leadership, manpower and drive needed to grow and face challenges. The earnings per share (EPS) during the period were also recorded Rs. 6.46 against Rs. 8.25 in the same period of previous year. It is revealed in the Economic survey of Pakistan FY2019 that the insurance sector in Pakistan comprises of 9 life insurers including two family Takaful operators, 41 non-life insurers including three general Takaful operators, and one state-owned national reinsurer. Moreover, EFU General is protected through the strongest and top rated reinsurers around the world which gives it a competitive edge over other Insurers. It is also said that one of the significant aspects of the company’s operation is that it has created a separate engineering group which works closely with clients to identify various risk exposures and then offer specific insurance coverage. This helps in loss prevention and reducing the cost of premium. EFU’s market-driven team of inspired and technically qualified insurance personnel, specializing in civil, mechanical, metallurgy, electronics and having overseas linkages, is on-call for necessary professional advice at all times. It is company’s strategy not only to provide protection and risk reduction but assist clients to develop preventive capabilities to avert major perils and calamities. EFU General is rated by JCR-VIS, PACRA and AM Best. JCR-VIS, PACRA have assigned rating of AA+ with stable outlook and AM Best have assigned rating of B+ with Outlook Positive. EFU is ISO 9001:2015 certified company.

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Regarding the recognition of EFU’s services to the industry and the economy of Pakistan, it has also received various awards. In future, the management of EFU General Insurance will strive to remain competitive to drive through the economic issues, enhance profitability and offer better returns to its shareholders.

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