Life PDF LR Final

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Introduction Vision & Mission 4 Strategic Objectives 6 Core Values 8 Key Financial Highlights 10 Technology 12 Distribution Footprint 14 CSR Initiatives 16 Products & Solutions 18 Our Team 20

Corporate Information Directors Pro�le 22 Leadership Team 24 Journey through the year 26 Sustainability & CSR 28 Organogram 29 Management 30 Committees 31 Company Information 32 Access to Reports & Enquiries 33 Company Pro�le 34 Performance Evaluation of the Board & CEO 35 Role of the Chairman and the CEO 36 Stakeholder Engagement / Quality Assurance 37 Whistle Blowing & Investor Grievance Policy / Internal Audit Framework 38 Decisions Taken at the last AGM 39 Code of Conduct 40 Financial Calendar 41 Notice of Meeting 42 Liquidity Management Strategy 48 Management Objectives & Strategies 49 Critical performance indicator 50 Business Continuity Plan / Disaster Recovery Plan 51 Forward looking Statement / Statement of Business Practices 52 Human Resource Development / Avoiding Con�ict of Interest 53 Resources, Capital & Changes in Financial Positions / Donations 54

Management Review and Representations Sustainability Report 55 Audit Committee- Terms of Reference 57 Report of the Audit Commitee 58 Chairman’s Review 60 Urdu Translation of Chairman’s Review 61

Report of the Directors to the Members 62 Urdu Translation of Report of the Directors to the Members 79 Risk and Opportunity Report 80

Stakeholder's Information DuPont Analysis For the year 2018 81 Summary of Cash Flow 82 Segment - Wise Review 83 Performance at a Glance 84 Share Price Sensitivity Analysis 86 Variation in Quarterly Reports 86 Key Financial Data for the Last Six Years 87 Key Operating and Financial Data 88 Graphical Analysis 89 Vertical Analysis 92 Horizontal Analysis 92 Revenue Application 94 Statement of Compliance with the Shariah Principles 95 Shariah Advisory Report to the Board of Directors / Pro�le of Shariah Advisor 96 Independent Reasonable Assurance Report to the Board of Directors on the Statement of Management's Assessment of Compliance with the Shariah Principles 98 Statement of Compliance with th Code of Corporate Governance 100 Review Report to the Members on Corporate Governance 105 Independent Auditor’s Report 106 Statement of Financial Position 111 Pro�t and Loss Account 112 Statement of Comprehensive Income 113 Cash Flow Statement 114 Statement of Changes in Equity 115

Disclosures Notes to and Forming Part of the Financial Statements 116 Statement under Section 52(2) 171

Other Information Pattern of Shareholding 172 Glossary 174 Group Bene�t - Of�ces 176 Bancassurance - Of�ces 176 Individual Life - Of�ces 177 Window Takaful Of�ces 184 Form of Proxy Form of E-Voting Bank Mandate Form

EFU LIFE ASSURANCE LIMITED

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Table of Contents


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Sustainability & CorporateSocial Responsibility


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OrganogramDownloaded from: https://OpenDoors.Pk

ManagersAbbas HussainAdnan Ali GulAdnan WaliAkbar Husain QazilbashAmeer Abbas Mir MuhammadiAsif AkhtarAzfar Hammad KhanDr. Hayaul Batool AbbaiFaisal ZahirFarah MushtaqFurqan AhmedIrfan Abbas HameerIrfan Qadir MalikJaved AmeenJibran Masood KhanM. Adnan QadeerM. Ammar ZaheerM. Jawaid MughalM. Rafi MalikMajid AzizMohammad Abbas ZaidiMohammad FaisalDr. Mohammad HassanNasir Feroz KhanNazia ShakeelRamesh KumarS. Abdul MujeebS. Muneer AliSaad TanzeemSaeed-ul-HaqSajid Mahmood ButtSheikh Irfan ZafarUsman AzherWaleed JawaidZohaibullah Ansari

Distribution ChannelsSales ForceMustafa Hussain AliNational Sales DirectorGroup BenefitsS. Ali Raza ZaidiExecutive DirectorBancassuranceHusein SachakHead of BancassuranceTakaful OperationsRehman Fayyaz KhanHead of Window Takaful OperationsShariah AdvisorMufti Muhammad Ibrahim EssaShariah Compliance OfficerNasir Feroz KhanCompliance OfficerAbbas Hussain

Managing Director & Chief ExecutiveTaher G. Sachak

Executive DirectorsMohammed Ali AhmedS. Shahid AbbasZain Ibrahim

Deputy General ManagersArshad IqbalAshfaque AhmedMohammad Asim Khan

Assistant General ManagersAli QureshiAman HussainJalal Habib CurmallyMohammad FaisalNilofer SohailRaza HasanS. Mohammad OwaisSyed Muhammad Raza Rizvi

Medical DirectorDr. Tajuddin A. Manji, F.R.C.P., M.R.C.P.

Chief ManagersDr. Asadul Hadi SiddiquiEvelyn D. AbrogenaM. Fawad HabibM. Hasan ShaikhM. Rehan SiddiquiMohammad AbbasNaseeruddin AhmedS. Muhammad AtharS. Rizwan Ali BukhariSajjad Hussain KhanZia-ur- Rehman Khan

Senior ManagersAhmar HasanAmmar QamarAsim MaqboolBurhan Zahid ChughtaiDr. Ammara MoazzumFarrukh HasanIrfan JunejoMohammad ZubairS. Mohammad Amer

Management


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Committees

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Management Committees

Underwriting Committee

Taher G. SachakDr. Tajuddin ManjiZain IbrahimHasan SheikhDr. Asad- ul- Hadi

Claim Settlement Committee

Taher G. SachakArshad IqbalDr. Ammara MoazzamSajjad Hussain

Reinsurance Committee

Taher G. SachakMohammad Ali AhmedZain IbrahimRaza HasanAli Qureshi

Risk Management &Compliance Committee

Taher G. SachakMohammed Ali AhmedS. Shahid AbbasZain IbrahimAli QureshiAbbas HussainS. Abdul Mujeeb

IT Steering Committee

Zain IbrahimS. Shahid AbbasAshfaque Ahmed

Board Committees

Audit Committee

Kamal AfsarHasanali AbdullahSaifuddin N. ZoomkawalaMuneer R. BhimjeeAli Raza Siddique

Ethics, HR & RemunerationCommittee

Kamal AfsarRafique R. BhimjeeSaifuddin N. ZoomkawalaTaher G. Sachak

Investment Committee

Rafique R. BhimjeeSaifuddin N. ZoomkawalaTaher G. SachakHasanali AbdullahOmer Morshed - Appointed ActuaryS. Shahid Abbas - Management ExecutiveMohammed Ali Ahmed - Management ExecutiveS. Muhammad Owais - Management Executive


Company Information


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ChairmanRafique R. Bhimjee

Managing Director& Chief ExecutiveTaher G. Sachak

DirectorsSaifuddin N. ZoomkawalaMuneer R. BhimjeeHasanali AbdullahHeinz Walter DollbergSyed Salman RashidKamal AfsarAli Raza Siddiqui

Company SecretaryAbbas Hussain

Appointed ActuaryOmer Morshed, F.C.A., F.P.S.A., F.I.A.

Legal AdvisorMohammad Ali Sayeed, M.A.B.L.

AuditorsKPMG Taseer Hadi & Co.Chartered Accountants, Karachi

RatingRating Agency: JCR-VISInsurer Financial Strength Rating: AA+Outlook: Stable

RegistrarCentral Depository Company of Pakistan Ltd.99-B, Block B, S.M.C.H.SMain Shahra - e - FaisalKarachi 74400 - Pakistan(92-21) 111-111-500

Website:www.efulife.com

Registered OfficeAl-Malik Centre70 W, F-7/G-7Jinnah Avenue, (Blue Area)Islamabad

Main OfficeEFU Life House,Plot No.112, 8th East StreetPhase 1, DHA, Karachi

Shariah AdvisorMufti Muhammad Ibrahim Essa


Access to Reports andEnquiries

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Annual ReportAnnual report can be downloaded fromthe Company's website: www.efulife.com;or printed copies obtained by writing to:

The Company SecretaryEFU Life Assurance Ltd.EFU Life House,Plot No.112, 8th East StreetPhase 1, DHA, Karachi, Pakistan

Quarterly ReportsThe company publishes interim reportsat the end of first, second and thirdquarters of the financial year. The interimreports can be accessed at website:www.efulife.com; or printed copies can beobtained from the company secretary.

Shareholder's EnquiriesShareholders' enquiries about theirholding, dividends or share certificatescan be directed to share registrar at thefollowing address:

Central Depository Company ofPakistan Ltd.99-B, Block B, S.M.C.H.SMain Shahra - e - FaisalKarachi 74400 - Pakistan

Stock Exchange ListingThe shares of the company are listedon Pakistan Stock Exchange. The symbolcode is EFUL.


Company Profile

EFU is the largest insurer group in the country. The group structure comprises of EFU Life Assurance Limited,EFU General Insurance Limited and Allianz EFU Health Insurance Limited.

The EFU Brand has a rich history of over 86 years, starting in 1932 in Calcutta. By 1961, EFU had becomethe flag bearer of Pakistan's insurance industry on the world stage, and the largest life company in Afro-Asian countries (excluding Japan). It remained so until 1972 when Life insurance business in Pakistan wasnationalized. From then onwards EFU operated solely as a General Insurance Company.

In 1992, the Government of Pakistan opened up life insurance to the private sector and EFU Life AssuranceLtd was incorporated as the first private sector life insurance company. Over a span of 25 years EFU Lifehas established itself as a trusted brand name in providing all types of financial planning solutions. TheCompany markets its business through three main distribution channels - Sales Force, Bancassurance andGroup Benefits. A comprehensive range of retail products are available targeting low-income persons upto high net worth individuals, details can be viewed on our website www.efulife.com. In addition, tailormade solutions are offered to the corporate sector through group life schemes.

The Company also has the distinction of being the first Window Family Takaful Operator to be licensedby the SECP and to start window takaful operations. A complete Shariah compliant suite of financialplanning products is available through all distribution channels.

Company Profile


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Performance Evaluationof the Board & CEO

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Performance Evaluation of the Board

Board of Directors act as governing trustees of EFU on behalf of the regulator, shareholders and Policyholders of the Company. For this purpose the Board has placed a mechanism to reevaluate its performanceannually as required by the Code of corporate Governance. The mechanism devised is based on emergingand leading trends on the functioning of Board and improving its effectiveness, The placement andFunctioning of evaluation mechanism is out sourced. Also, each member of the Board carried out a self-assessment of his own effectiveness as an individual as well as effectiveness of the Board as a team forthe year. Furthermore, the Company is abiding by the Code of Conduct which is formulated by the Board.

The Board set following evaluation criteria to judge its performance.

• Ensures that compliance mechanism is in place and followed diligently.

• Proper risk management tools are in placed which supports for company's performance and growth.

• Compliance with all relevant regulatory laws and regulations by management of the company.

• Review of the long term strategic business plans and goals and its achievement.

• Ensuring adequate internal control system within the company and its regular assessment through self-assessment and audit committee.

• Ensuring required quorum of Board meeting is available in order to have detailed deliberation andquality decision on matters of significance.

• Ensures the training of Board member particularly the new members are fully aware of their roles andresponsibilities.

Performance Evaluation of the Chief Executive Officer

The performance of the Company is intricately linked to the CEO's performance and inevitably, the CEO'sperformance is measured against the Company's performance. The Chief Executive Officer (CEO) isresponsible for leading the development and execution of the Company's long term strategy with a viewto creating value for its shareholder. The CEO's leadership role also entails being ultimately responsiblefor all day-to-day management decisions and for implementing the company's long and short term plans.

The performance of CEO is assessed through performance and target given by the Board. The followingconstitute the benchmarks against which the evaluation takes place:

• Development of future Strategy

• Customer insight and sales leadership

• Financial analysis and management

• Effective deployment of information systems


Role of the Chairmanand the CEO


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The roles of the Chairman and the Chief Executive are separate and complementary, with responsibilities clearly set out.

Chairman

The Chairman is responsible for leadership of the Board. In particular, he will:

• Ensure effective operation of the Board and its committees in conformity with the highest standards of corporategovernance.

• Ensure effective communication with shareholders, and other relevant stakeholders and that the views of thesegroups are understood by the Board.

• Set an agenda which is primarily focused on strategy, performance, value creation and accountability, andensure that issues relevant to those areas are considered by the Board.

• Ensure that the Board determines the nature and extent of the significant risks the Company is willing to embracein the implementation of its strategy, and that the Board reviews on an ongoing basis the effectiveness of riskmanagement and internal control systems.

• Set the agenda, style and tone of Board discussions to promote constructive debate and effective decisionmaking.

• Manage the Board to ensure that adequate time is allowed for discussion of all agenda items (in particularstrategic issues) and to ensure that complex or contentious issues are dealt with effectively, making sure inparticular that non-executive Directors have sufficient time to consider them.

• Ensure that Board members receive accurate, timely and clear information, in particular about the Company'sperformance.

Chief Executive

The Chief Executive is responsible for leadership of the life insurance business, managing it within the authorities delegatedby the Board and the development and implementation of strategy. In particular, he will:

• Develop strategy proposals for recommendation to the Board and ensure that agreed corporate strategy actionsare reflected in the business.

• Be responsible to the Board for the performance of the business consistent with agreed business plans, corporatestrategies and policies and keep the Board as a whole updated on progress made against such agreed plans,corporate strategies and policies.

• Facilitate the operating businesses of the Company in developing their own strategic plans for the future ensuringthat they are properly evaluated and that they are built into the overall corporate strategy.

• Plan human resourcing to ensure that the Company has the capabilities and resources required to achieve itsbusiness plans

• Develop an organizational structure and establish processes and systems to ensure the efficient organizationof resources.

• Lead the Committees, including the development of performance targets and appraisals for the ExecutiveCommittees and senior management. Ensure that business is conducted in accordance with the BusinessPrinciples.

• Ensure that the flow of information to the Board is accurate, timely and clear. Ensure that reporting lines withinthe Company are clearly established and are effective.

• Ensure that management puts procedures in place to ensure compliance with all relevant legislation andregulation.

• Develop and maintain an effective framework of internal controls including risk management in relation to allbusiness activities.

• Ensure that the Company has a suitable system and policy for the timely and accurate disclosure of informationin accordance with regulatory requirements.

• Keep the Chairman promptly informed on all matters that may be of importance to the Board or of which theBoard should be aware.

The Chairman and Chief Executive will meet regularly to review issues, opportunities and problems.


Stakeholder Engagement /Quality Assurance

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Policy and Procedures for Stakeholder Engagement

Institutional Investors

The Company convenes Annual General Meeting in accordance with the Companies Ordinance, 1984. TheCompany’s financial reports are published every quarter and are also placed on Company's website for theshare holders and potential investors.

In compliance with the Code of Corporate Governance under the listing regulations of the stock exchange.The Company notifies information to the stock exchange from time to time. This helps the shareholders remainconnected with the Company. The dates of the Board of Directors Meetings and financial results are notifiedto the stock exchange.

Customers

We believe in customer trust and satisfaction being our strength over the years. To help improve customerservice and meet their needs and expectations, feedback from customers are sought.

Banks

We understand the importance of these stakeholders and ensure continuous interactions with them and manageour relationships.

Media

We engage with media through press briefing and regular press releases on key achievements, periodical results,and other strategic events.

Regulators

To maintain compliance with applicable laws and regulations, the applicable statutory returns and forms arefiled with various regulatory bodies and federal and provisional taxation authorities.

Procedures Adopted for Quality Assurance of Products / Services

EFU Life believes that meeting customer expectations comes from consistently meeting standards anddelivering consistent results is at the core of quality assurance procedures.

It is our responsibility to ensure that every employee understands the quality definitions and how he / sheis to make certain those standards are met. Measuring the quality that is delivered is critical for consistentresults. Department / Branch Heads monitor work processes and maintain quality standards.

As per ISO 9001:2015 standards, EFU Life has established procedures for quality assurance of services bycontinually improving the effectiveness of the quality management system through the use of:

• the quality policy,• quality objectives,• audit results,• analysis of data,• corrective and preventive actions,• regular management reviews,• trainings,• customer feedback system and• monitoring / measurement activities.

The old expression, "There is always room for improvement," rings true when it comes to quality assurance.To keep our business on the cutting edge, we always ask the question, How can we make this better? Bytweaking the process where required or by raising standards each year, we will see our overall businessquality improve to levels higher than ever before.


Whistle Blowing Policy

In compliance with the Code of corporate Governance the Company has adopted Whistle Blowing Policy.The Company has established Code of Ethics which sets out the standards of conduct expected in themanagement of its business. All the employees are expected to carry out their duties in a manner that isconsistent with the Code. If employees become aware of the circumstances which are not in compliancewith the Code, they communicate their concerns to the Management Director.

Investors Greivance Policy

EFU Life Assurance Ltd. believes that relations with investors are vital for the financial life line and substantialgrowth of the organization. Relations with investors also reflect on the goodwill of the organization. It istherefore, imperative to place an efficient and effective mechanism in the organization for providingservices to the investors and to re-dress their grievances in accordance with law.

The Company has accordingly provided on its website, the necessary information about the Company,the directors, auditors, share registrars, the financial data for the current period and for the last six yearsand daily stock update showing daily rates of the Company's shares quoted at the Karachi Stock Exchange.

The Chief Financial Officer and Corporate Secretary of the Company is the primary contact on behalf ofthe Company to whom the investors can contact to re-dress their grievances and resolve their issues.

The management endeavors to investigate and resolve all the complaints and queries of the investors totheir utmost satisfaction. An investor who is not satisfied can also approach the Securities & ExchangeCommission of Pakistan (SECP) complaint cell through interactive link provided on our website. Our investorgrievance policy is broadly based on the following principles:

• Investors calling us in person, telephone, fax or email are received and their complaints are dealt intimely manner.

• Each and every investor is treated fairly at all the times.

• Prompt, efficient and fair treatment is given to all the complaints and queries of the investors.

Internal Audit Framework and Role of the Internal Auditor

Internal Audit is an independent appraisal function, which operates as a service to the company throughthe Audit Committee and senior management. Its role, as part of the overall governance and controlenvironment, is to provide an independent and objective assurance and consulting service; to evaluate theadequacy and effectiveness of the risk management, internal controls, operations and governance processesthroughout the company. It also provides an opinion on the company's operations for economy, efficiencyand effectiveness.

To fulfill this role, the internal audit service covers all the financial and other management control systems.Internal Audit is empowered to audit all systems and activities and has unrestricted access to all records,reports, personnel, IT systems and assets for audit purposes. It consults with appropriate management toset mutually convenient dates for audits work to take place, but the timing of the audit is at the ultimatediscretion of the audit department.

Whistle Blowing & Investor GrievancePolicy / Internal Audit Framework


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Decisions taken at thelast AGM

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Annual General Meeting held on April 7, 2018

No significant issues were raised by the shareholders during the meeting. The following matters taken upin the meeting as per Agenda were approved unanimously and the decisions taken were implementedin due course:

1. approval of the minutes of the 26th Annual General Meeting held on April 2, 2017.

2. approval of the minutes of EOGM held on June 28, 2017.

3. approval of Audited Financial Statements for the year ended December 31, 2017 together with theDirectors' and Auditors' reports thereon.

4. approval of Final Cash Dividend at the rate of Rs.11.25/- per share i.e. 112.50% for the year endedDecember 31, 2017 as recommended by the Board of Directors and also approve the interim dividendof Rs 3.75 i.e. 37.50% already paid to shareholders, thus making a total of Rs 15/00 per share i.e.150% for the year ended December 31, 2017.

5. appoint Auditors for the year 2018 and fix their remuneration

6. resolve that transmission of financial statements , auditors report and directors report etc to membersof the company at registered address in soft form i.e. CD/DVD/USB.

Special Business

1. approval of following resolutions.

"Resolved that the transactions carried out by the Company in the normal course of business withEFU General Insurance Ltd. and Allianz EFU Health Insurance Ltd. (related parties) in 2017 be and arehereby ratified, approved and confirmed."

"Further Resolved that the Managing Director & Chief Executive be and is hereby authorized to approveall the transactions carried out in the normal course of business with EFU General Insurance Ltd. andAllianz EFU Health Insurance Ltd. till the next Annual General Meeting."


Code of Conduct


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Statement of Ethics

EFU’s Code of Ethics spells out the standards of behavior and principles to be followed by the employees.Our Code of Ethics requires that it is necessary to ensure that the appropriate standards of behavior arefollowed to the letter and spirit in accordance with the approved and agreed Code of Conduct by theemployees of EFU.

EFU, being the custodian of share holders and policy holders' wealth, becomes more responsible to maintainethical culture based on best practices world wide. We believe maintaining an ethical environment is criticalfor our valued share holders, policy holders', regulators and other stakeholders. Therefore, for nurturingthis culture all Directors and staff are required to:

l Act with integrity, dignity and in an ethical manner when dealing with the public, clients and peers.

l Protect the confidentiality of client information at all times except where required by law todisclose it.

l Protect the confidentiality of information relating to the Company both during the course ofDirectorship or employment (as the case may be) and after its termination (regardless of reason).

l Obtain written permission from the Company's Compliance Officer (or the Chief Executive Officerin the event that the Compliance Officer is unavailable) to hold any position (paid or unpaid) withany outside party, firm or organization. For clarity, positions covered include but are not limited toconsultant, employee, Director, representative and agent. Furthermore, all staff must disclose inwriting to the Company, any such positions they currently hold at the time of signing this statementDirectors are exempt from this requirement.

l Maintain accurate records of business transactions related to the Company or its clients.

l Report any business or professional activities or any beneficial interests that may result in a conflictwith or be competitive with the interests of the Company.

l Report any person or activity to the Compliance Officer or CEO that, in their opinion, is in violationof this statement.

l Disclose their shareholding in the Company's Securities upon signing this agreement and any changesin shareholding within 24 hours of any such change.

Statement of Business Practices

l Uncompromising integrity. Our business is founded on trust and we manage it ethically, lawfully andfairly.

l Clients first. Nothing we do is more important than protecting and preserving our clients' interests.We hold responsibilities towards our clients in the highest regard.

l Entrepreneurship. We work hard every day to hire the best people, motivate them, reward them andencourage them to innovate. We are a meritocracy and an equal opportunity employer.

l Passion for performance. We contribute towards our Company's financial goals and concentrate onachieving superior results.

l A culture of excellence. We measure our performance on every task we undertake not just by theresults but also by the quality of our work.

l A tradition of success. While we are fair and ethical at all times, we compete aggressively by providingexcellent service to our clients.


Results

First Quarter ended 31 March Announced on 26-Apr-18Half year ended 30 June Announced on 20-Aug-18Third quarter ended 30 September Announced on 26-Oct-18Year ended 31 December Announced on 22-Mar-19

Dividend

1st Interim 2018 Announced On 26-Apr-18Amount 12.5%Entitlement date 9-May-18Paid On 24-May-18Statutory limit upto which payable 30-Apr-18

2nd Interim 2018 Announced On 20-Aug-18Amount 12.5%Entitlement date 3-Sep-18Paid On 17-Sep-18Statutory limit upto which payable 25-Sep-18

3rd Interim 2018 Announced On 26-Oct-18Amount 12.5%Entitlement date 8-Nov-18Paid On 16-Nov-18Statutory limit upto which payable 30-Nov-18

Final Cash 2018 Announced On 22-Mar-19Amount 112.5%Entitlement date 16-Apr-19Statutory limit upto which payable 15-May-19

1st Interim 2017 Announced On 27-Apr-17Amount 12.5%Entitlement date 12-May-17Paid On 19-May-17Statutory limit upto which payable 11-Jun-17

2nd Interim 2017 Announced On 16-Aug-17Amount 12.5%Entitlement date 30-Aug-17Paid On 9-Sep-17Statutory limit upto which payable 29-Sep-17

3rd Interim 2017 Announced On 28-Oct-17Amount 12.5%Entitlement date 14-Nov-17Paid On 20-Nov-17Statutory limit upto which payable 14-Dec-17

Final Cash 2017 Announced On 14-Feb-18Amount 112.5%Entitlement date 31-Mar-18Statutory limit upto which payable 27-Apr-18

Issuance of Annual Report 1-Apr-19

27th Annual General Meeting 23-Apr-19

Financial Calendar

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Notice is hereby given that the 27th Annual General Meeting of the Shareholders of EFU Life Assurance Ltd.will be held at Kamran Centre, 1st Floor, 85 East, Jinnah Avenue, Blue Area, Islamabad on Tuesday April 23,2019 at 11.30 a.m. to:

A. ORDINARY BUSINESS:

1. confirm the minutes of the 26th Annual General Meeting held on April 07, 2018.

2. receive, consider and approve the Audited Financial Statements for the year ended December 31,2018 together with the Chairman's review, Directors' and Auditors' reports thereon.

3. consider and if thought fit to approve the payment of Final Cash Dividend at the rate of Rs.11.25/-per share i.e. 112.50% as recommended by the Board of Directors and also approve the Interim cashdividend of Rs. 3.75/- per share i.e. 37.5% already paid to shareholders for the year ended December31, 2018.

4. appoint Auditors for the year 2019 and fix their remuneration. The Audit Committee and the Boardof Directors have recommended the name of M/s KPMG Taseer Hadi & Co., Chartered Accountantfor re-appointment as auditors with rotation of Partner as approved by SECP.

B. SPECIAL BUSINESS:

5. To consider, and if thought fit, to pass the following resolutions with or without modification(s)

"Resolved that the transactions carried out by the Company in the normal course of business with EFUGeneral Insurance Ltd. and Allianz EFU Health Insurance Ltd. (related parties) in 2018 be and are herebyratified, approved and confirmed."

"Further Resolved that the Managing Director & Chief Executive be and is hereby authorized to approveall the transactions carried out in the normal course of business with EFU General Insurance Ltd. andAllianz EFU Health Insurance Ltd. till the next Annual General Meeting."

"Further Resolved that the Managing Director & Chief Executive and the Company Secretary of theCompany be and are hereby authorized to give effect to this resolution and to do or cause to do all acts,deeds and things that may be necessary or required and to sign such documents and take such stepsfrom time to time, as and when necessary for the purposes of implementing this resolution."

6. Transact any other matter with the permission of the chair.

Attached to this notice of meeting being sent to the members is a statement under Section 134(3)(b)of the Companies Act, 2017 setting forth :

a. All material facts concerning the resolutions contained in item 5 of the notice.

By Order of the Board

Abbas HussainKarachi: 22 March 2019 Company Secretary

Notice of Meeting


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NOTES

1. A member entitled to attend and vote at the General Meeting is entitled to appoint another memberas a proxy to attend and vote in respect of his/her behalf. Form of proxy must be deposited at theCompany's Registered Office not later than 48 hours before the time appointed for the meeting.

2. CDC Account holders are advised to follow the following guidelines of the Securities and ExchangeCommission of Pakistan.

A. For attending the meeting:

i In case of individuals, the account holder and / or sub-account holder and their registration detailsare uploaded as per the Regulations, shall authenticate his identity by showing his originalComputerized National Identity Card (CNIC) or original passport at the time of attending the meeting.

ii In case of corporate entity, the Board of Directors' resolution / power of attorney with specimensignature of the nominee shall be produced (unless it has been provided earlier) at the time of themeeting.

B. For appointing proxies:

i In case of individuals, the account holder and / or sub-account holder and their registration detailsare uploaded as per the Regulations, shall submit the proxy form as per the above requirement.

ii The proxy form shall be witnessed by two persons whose names, addresses and CNIC numbers shallbe mentioned on the form.

iii Attested copies of CNIC or the passport of the beneficial owners and the proxy shall be furnishedwith the proxy form.

iv The proxy shall produce his original CNIC or original passport at the time of the meeting.

v In case of corporate entity, the Board of Directors' resolution/power of attorney with specimensignature shall be submitted (unless it has been provided earlier) along with proxy form to theCompany.

3. For exercising electronic voting (e-voting) right through e-voting services provider under Companies(Postal Ballot) Regulation, 2018:

i. If Company receives demand for poll by e-voting from members having not less than one tenth ofthe voting power the Company will arrange for e-voting exercise.

ii. The Company shall provide its members with the option of e-voting by postal ballot in accordancewith the provision of Companies (Postal Ballot) Regulations, 2018 Shareholders who wish toparticipate through e-voting, kindly provide immediately or not later than seven days from the dateof Annual General Meeting, through a letter duly signed by them, i.e. Name, Folio / CDC A/C No.,E-mail Address, Contact Number to the share Registrar of the Company (Central Depository Companyof Pakistan Limited, Share Registrar Department, CDC House, 99-B, Block-B, S.M.C.H.S., MainShahra-e-Faisal, Karachi-74400).

iii. Representative of our share registrar at CDC, CDC House, 99-B, Block-B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi-74400, Pakistan will be appointed as execution officer for the meeting.



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iv. The proxy/e-voting form shall be witnessed by two persons whose names, addresses and CNICnumbers shall be mentioned on the form.

4. The Share Transfer Books of the Company will be closed from April 17, 2019 to April 23, 2019 (bothdays inclusive). Transfers received in order by our Share Registrar, Central Depository Company ofPakistan Limited, CDC House, 99-B, Block 'B', S.M.C.H.S., Main Shahra-e-Faisal, Karachi-74400 beforethe close of business on April 16, 2019 will be considered in time to attend and vote at the meeting andfor the entitlement of Dividend.

5. Members are requested to notify/submit the following, in case of book entry securities in CDC to respectiveCDC participants and in case of physical shares, to the Company's Share Registrar, if not earlier provided/notified:

a. Change in their addresses;

b. Valid and legible photocopies of Computerized National Identity Card (CNIC) for Individuals andNational Tax Number (NTN) both for individuals & corporate entities.

6. ELECTRONIC TRANSMISSION OF ANNUAL FINANCIAL STATEMENTS AND NOTICES

Pursuant to Notification vide SRO 787(I)/2014 dated September 08, 2014, the Securities and ExchangeCommission of Pakistan (SECP) has directed all companies to facilitate their members receiving annualfinancial statements and notices of annual general meeting through electronic mail system (E-mail). EFULife Assurance Ltd., is pleased to offer this facility to our valued members who desire to receive annualfinancial statements and notices through email in future.

In this regards, those members who wish to avail this facility are hereby requested to convey their consentvia email on a standard request form which is available at the Company's website.

Please ensure that your email account has sufficient rights and space available to receive such emailwhich may be greater than 1MB in size. Further, it is the responsibility of member(s) to timely updatethe share registrar of any change in his (her / its / their) registered email address at the address ofCompany's registrar.

7. ELECTRONIC DIVIDEND MANDATE

Under the section 242 of Companies Act, 2017 it is mandatory for all listed Company to pay cash dividendto its shareholders through electronic mode directly in to the bank account designated by the entitledshareholders.

In order to receive dividend directly into their bank account, shareholders are requested (if not alreadyprovided) to fill in Bank Mandate Form for Electronic Credit of Cash Dividend available in the AnnualReport and also on the Company's website and send it duly signed along with a copy of CNIC to theShare Registrar of the Company, CDC House, 99-B, Block 'B', S.M.C.H.S., Main Shahra-e-Faisal, Karachi-74400, in case of physical shares.

In case of shares are held in CDC then electronic dividend mandate form must be directly submitted toshareholder's brokers / participant / CDC account services.

In case of non-receipt of information, the Company will be constrained to withhold payment of dividendto shareholders.


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8. SUBMISSION OF VALID CNIC (MANDATORY)

As per SECP directives the dividend warrants of the shareholders whose valid CNICs, are not availablewith the Share Registrar could be withheld. All shareholders having physical shareholding are thereforeadvised to submit a photocopy of their valid CNICs immediately, if already not provided, to the Company'sShare Registrar at the following address, Registrar, Central Depository Company of Pakistan Limited,CDC House, 99-B, Block 'B', S.M.C.H.S., Main Shahra-e-Faisal, Karachi-74400 without any further delay.

9. DEDUCTION OF WITHHOLDING TAX ON THE AMOUNT OF DIVIDEND

Pursuant to SECP directives vide Circular No.19/2014 dated October 24, 2014. SECP has directed allcompanies to inform shareholders about changes made in the section 150 of the Income Tax Ordinance,we hereby advise shareholder as under;

(i) The Government of Pakistan through Finance Act, 2016 and 2017 has made certain amendmentsin section 150 of the Income Tax Ordinance, 2001 whereby different rates are prescribed fordeduction of withholding tax on the amount of dividend paid by the companies. These tax ratesare as under:

a. for filers of income tax returns: 15%

b. for non-filers of income tax returns: 20%

To enable the Company to make tax deduction on the amount of cash dividend @15% instead of20%, all the shareholders whose names are not entered into the Active Tax Payers List (ATL) providedon the website of FBR, despite the fact that they are filers, are advised to make sure that their namesare entered into ATL before the date for payment of the cash dividend otherwise tax on their cashdividend will be deducted @ 20% instead of @ 15%.

(ii) In the case of shares registered in the name of two or more shareholders, each joint-holder is to betreated individually as either a filer or non-filer and tax be deducted by the Company on the basisof shareholding of each joint-holder as may be notified to the Company in writing. The joint-holdersare, therefore, requested to submit their shareholdings otherwise each joint-holder shall be presumedto have an equal number of shares.

(iii) For any query/ problem /information, the investors may contact the Company and / or the ShareRegistrar at the following phone numbers & email address. The contact number of CorporateSecretary is 021-111-338-111 (Ext: 558) & email: [email protected] and the contactnumbers of Share Registrar, Central Depository Company of Pakistan is 021-111-111-500 & email:[email protected]

(iv) The corporate shareholders having CDC accounts are required to have their National Tax Number(NTN) updated with their respective participants, whereas corporate physical shareholders shouldsend a copy of their NTN certificate to the Company or its Share Registrar, Central DepositoryCompany of Pakistan. The shareholders while sending NTN or NTN certificates, as the case may be,must quote company name and their respective folio numbers.

10. CONSENT FOR VIDEO CONFERENCING FACILITY

Pursuant to the provision to the Companies Act, 2017 members can also avail the video call facility, inthis regard please fill the following and submit to registered address of the Company at-least 10 days



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before the holding of Annual general meeting. If the Company receives consent from members holdingaggregate 10% or more share holding residing at the geographical location to participate in the meeting,the Company will arrange video conference facility in the city subject to availability of such facility inthat city.

I / We ____________, of_____________, being a member of EFU Life Assurance Ltd. holder of______ordinaryshare(s) as per registered Folio No.______hereby opt for video conferencing facility.

11. UNCLAIMED DIVIDEND

As per the provision of section 244 of the Companies Act 2017, any shares issued or dividend declaredby the Company which have remained unclaimed / unpaid for a period of three years from the date onwhich it was due and payable are required to be deposited with commission for the credit of FederalGovernment after issuance of notices to the shareholders to file their claim. The details of the sharesissued and dividend declared by the Company which have remained due for more than three years wassent to shareholders. Shareholders are requested to ensure that their claims for unclaimed dividend andshares are lodged timely. In case, no claim is lodged with the Company in the given time, the Companyshall after giving notice in newspaper proceed to deposit the unclaimed / unpaid amount and shareswith the Federal Government pursuant to the provision of Section 244 (2) of Companies Act 2017.

12. Deposit of Physical shares into CDC Account

Shareholders having shares in physical form are advised to open CDC sub-account with any of the brokersor Investor Account directly with the CDC to place their shares in scrip-less form, this will facilitate themin many ways including safe custody and sale of shares at any time they want, as the trading of physicalshares is not permitted as per existing regulations of Pakistan Stock Exchange Limited.

Further, Section 72 of the Act states that after the commencement of the Companies Act, 2017 froma date notified by the Commission, a company having share capital, shall have shares in book entry formonly. Every existing company shall be required to replace its physical shares with book-entry form in amanner as may be specified and from the date notified by the Commission, within a period not exceedingfour years from the commencement of the said Act.

STATEMENT UNDER SECTION 134 (3) OF THE COMPANIES ACT, 2017:

This statement sets out the material facts pertaining to the Special Business to be transacted at the AnnualGeneral Meeting of the Company to be held on April 23, 2019.

1. Item No. 5 of the Notice

Transactions carried out with related parties during the year ended December 31, 2018 to be passed asa Special Resolution.

The transactions carried out in normal course of business with associated companies (related parties) areapproved by the Board as recommended by the Audit Committee on quarterly basis pursuant to regulationNo. 15 of the Listed Companies (Code of Corporate Governance) Regulations, 2017. In the case of EFUGeneral Insurance Ltd. and Allianz EFU Health Insurance Ltd., a majority of the Directors were interestedand in accordance with the provisions of Section 208 of the Companies Act, 2017. Such transactions,therefore, are being placed before the shareholders for approval through special resolution proposed tobe passed in the Annual General Meeting.


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In view of the above, the normal business transactions conducted during the year 2018 with EFU GeneralInsurance Ltd. and Allianz EFU Health Insurance Ltd. as per following details are being placed before theshareholders for their consideration and approval/ratification.

Amount in PKR 000'

EFU General Insurance Ltd. Premium written 24,659

EFU General Insurance Ltd. Premium paid 29,311

EFU General Insurance Ltd. Claims paid 8,279

EFU General Insurance Ltd. Dividend received 46,810

EFU General Insurance Ltd. Dividend paid 650,881

Allianz EFU Health Insurance Ltd. Premium written 968

Allianz EFU Health Insurance Ltd. Premium paid 19,153

The names of Directors with interest as director in EFU General Insurance Ltd. and Allianz EFU Health InsuranceLtd.

i. Mr. Saifuddin N. Zoomkawala, Director of the Company is also a director in EFU General Insurance Ltd.and Allianz EFU Health Insurance Ltd.

ii. Mr. Rafique R. Bhimjee, Director of the Company is also a director in Allianz EFU Health Insurance Ltd.

iii. Mr. Muneer R. Bhimjee, Director of the Company is also a director Allianz EFU Health Insurance Ltd.

iv. Mr. Hasanali Abdullah, Director of the Company is also a director in EFU General Insurance Ltd. andAllianz EFU Health Insurance Ltd.

v. Mr. Taher G Sachak, Director of the Company is also a director in EFU General Insurance Ltd. and AllianzEFU Health Insurance Ltd.

vi. Mr. Ali Raza Siddique, Director of the Company is also a director in EFU General Insurance Ltd.

vii. Mr. Heinz Walter Dollberg, Director of the Company is also a director in Allianz EFU Health Insurance Ltd.

Authorization to the Chief Executive for the approval of transactions carried out and to be carriedout with EFU General Insurance Ltd. & Allianz EFU Health Insurance Ltd. (related party) till the nextAnnual General Meeting to be passed as a Special Resolution

The Company would be conducting transactions with EFU General Insurance Ltd. and Allianz EFU HealthInsurance Ltd. in the normal course of business. The majority of Directors are interested in these transactionsdue to their common Directorship and shareholding in EFU General Insurance Ltd. and Allianz EFU HealthInsurance Ltd. as detailed herein above. Therefore, in order to comply with the provisions of regulation No.15 of the Listed Companies (Code of Corporate Governance) Regulations, 2017, the shareholders mayauthorize the Managing Director & Chief Executive to approve transactions carried out and to be carried outin the normal course of business with EFU General Insurance Ltd. and Allianz EFU Health Insurance Ltd. tillthe next Annual General Meeting.

The names of Directors and nature and extent of their interest in the proposed resolution is the same asmentioned above.


Liquidity risk:• Liquidity risk for insurers:

Risk of an actual or perceived shortfall of liquid assets to pay claims or operating expenses.Risk of low investment yield related to liquidity issues, e.g.– Investing too safely; maximizes liquidity but hurts performance.– Having to get out of a position at an inopportune time and realize a loss (significant research

on “cost of distress” issues).

Impacts of liquidity issues• Inability to pay claims on a timely basis can produce “run on bank” mentality• Rating agencies rate willingness and ability to pay - Money invested in illiquid assets is heavily

discounted in the rating process. Downgrade=death.• Poor investment performance related to liquidity issues can contribute to further problems

(particularly distressed selling)

Unique attributes of insurance industry:Majority of cash obligations are estimates - not known in nominal or present value• Analysis that reflects the uncertainty of obligations suggests a different position than a static

analysis would• Liquidity management becomes important

Liabilities are sensitive to inflation• Simultaneous impacts on assets and liabilities should be understood• Forces that could result in increase of liabilities and decrease of assets at the same time impair

operating flexibility and can force a liquidity crunch

Underwriting cycle can produce fluctuating operating cash position• Changing levels of internally generated cash may alter investment strategy and concerns about

liquidity• Less concern when internally generated cash is readily available „

Catastrophe exposure• Must account for potential need for significant liquidity

Regulatory constraints on investing “creativity” (concern for policyholder welfare)• Strategy must incorporate constraints by external parties• Practically speaking, this results in a need to keep a safe liquidity posture

Asset management has established conventional wisdoms and risks of deviations• Departures from traditional approaches often must be supported by strong evidence

Sometimes poorly institutionalized links between asset and liability side• More dynamic links can be created

Enterprise Risk Management and Investment Philosophy

Asset Allocation Policy is the primary driver of total investment portfolio return variability and performanceover timeLiquidity Metrics must be incorporated with other total return measuresActive Risk Policy drives relative portfolio performance and significantly enhances performance over timeManager Structure integrates asset allocation policy and active risk policy to avoid uncompensated risksand capture active manager skill to enhance returns.Active Manager Skill adds value over time.An Enterprise Risk Management Approach is essential to enhance overall corporate financial performance

Liquidity Management Strategy


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ManagementObjective

Sustained profitability Venture into long term profitablebusiness segments

Healthy Profit after tax, declared cashdividend of 150%

Financial Efficiency

Increase customerretention

Dedicated focus on customerretention, part of all KPIs fordistribution channels

Achieved overall persistency of 89.9%

Acquire newcustomers

Robust distribution setup; multiplechannels such as agency sales force,bancassurance, corporate sector,telecommunication companies,branchless banks

Growth of 28% in new business

Introduce newproducts

Customer segmentation and solutionsaccording to the needs of the targetpopulation

Diverse range of products availablefrom pure protection to savings,focusing on short and long term needsof all customer segments, from microto High networth customers.

Social impact Products which provide valuable lifeinsurance coverage for financialsupport of the insured individuals andfamilies

Claims (death and disability) of Rs. 2.55billion paid during the year

Employ professionswho create value forcustomers

Significant focus through strategic HRpolicies on employee recruitment andselection to fulfil the organization'shuman capital needs

A professional and seasonedmanagement team

To develop leadershipabilities and potentialfor our team

Provide opportunities for skillenhancement and leadership traitsthrough identifying developmentneeds and organization's futurerequirements; professionalqualifications are encouraged andsupported

High caliber individuals are employedin various technical functions supportedby the organization for their continuousprofessional development.

Strategies to meetthe objectives

Relationship betweenEFU Result and Objectives

Effective financial management Healthy financial statement

Management Objectives& Strategies


EFU Life has always been a stable player in life insurance sector. Challenging political environment incountry meant heavy losses on investments made in Equity within Pakistan accompanied with high levelcompetition and economic uncertainties. Despite these challenging conditions, performance of EFU Liferemained excellent.

The CPI during 2018 were as follows:

• Growth in premium for each line of business.

• Number of lives insured

• Persistency of individual life business by distribution channel.

• Claims to premium ratio

• Acquisition cost to gross premium

• Growth in the distribution network

Management Objective CPI Why is it important

Revenue per policy holder Servicing Cost A low value of this CPI could be due topoor agency contracts, sub par customerservice or lack of sound investment policy

Average cost per claim Cost per claim It is important to categorized by type ofclaims

Average time to settle claim Total days taken to settleclaim / total claims

It is important to retain current andpotential customer

Return on surplus This CPI measures companies performance

Renewal / Retention This measures thecustomer who continuecoverage after initial termhas expired

Retention is important for profitability

Issuance of new policies It is important indicator of operationalperformance & can be instrumental instrategy development

New Business

It measures the quality ofnew business brought inby agents

Underwriting acceptance rateStrike Rate

Value of total policies sold/ number of policies sold

It helps in evaluating weather the companyis achieving the product risk that matchescompany strategy

Average Policy Size

Process of approval is important forcustomer satisfaction.

Underwriting Process

Premium per policy

Time consumed per policy

Critical performance indicator


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Business Continuity Plan (BCP)

The Business Continuity Plan (BCP) is a plan to ensure continuation of business processes in an emergencyor disaster. These failures or disasters may include fire or any other incident where the company cannotcontinue their operations under normal conditions. Companies need to analyze all possible threats anddesign a plan to ensure business continuity if the threat becomes a reality.

Disaster Recovery Plan (DRP)

A disaster recovery plan (DRP) is a documented, structured approach with instructions to recover andprotect a business IT infrastructure in the event of a catastrophic event. It is "a comprehensive statementof consistent actions to be taken before, during and after a disaster". An effective disaster recovery planmust be regularly reviewed and updated to make sure it reflects the current state of the business andmeets the goals of the company. Not only should it be reviewed, but it must be tested to ensure it wouldbe a success if implemented.

As EFU Life is a technology oriented company, thereforewe cannot bear any downtime or data loss due to disaster.So we have designed and deployed Disaster Recovery siteto protect the organization in the event of Disaster forfollowing critical services,

• Business Application

• Database services & Client data

• Telephony services

• Emails & other communication services

Goals and Objectives of Disaster Recovery Plan are,

1. Reduce Overall Risk

2. Maintain and Test our Disaster Recovery Plan

3. Alleviate Owner and policy holders Concerns

4. Restore Day-to-Day Operations

5. Comply with Regulations

6. Rapid Response

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Business Continuity Plan /Disaster Recovery Plan


Forward looking Statement /Statement of Business Practices


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EFU Life has a positive outlook on the next 5 years of the life insurance and family takaful industry. The sectorhas continued to perform well vis-à-vis other sectors in the financial arena, and the Company expects this growthmomentum to continue for the medium term. Distribution channels and their effective utilization will continueto be the primary driving force resulting in an increased insurance penetration and expansion of the financialprotection safety net. At the same time, alternative mass market channels focusing on including a larger numberof lives under the insurance net will continue to be explored by the companies. With the expansion of thedistribution channels, the Company expects the industry players to focus more on improving the productivity.

With the opening up of window takaful operations during 2015, and several window takaful operators havingstarted operations, the Company expects takaful outreach to expand and contribute positively in increasing thesize of the insurance pie. Investment on Information Technology will continue, especially adopting new trendsin technology, and will be one of the key aspects of the industry's strategy. The Company expects investmentsin enhancing the technology base for back-end operations and for front end sales and services to clients.

Statement of Business Practices

• Uncompromising integrity. Our business is founded on trust and we manage it ethically, lawfully and fairly.

• Clients first. Nothing we do is more important than protecting and preserving our clients’ interests. We holdresponsibilities towards our clients in the highest regard.

• Entrepreneurship. We work hard every day to hire the best people, motivate them, reward them and encouragethem to innovate. We are a meritocracy and an equal opportunity employer.

• Passion for performance. We contribute towards our Company’s financial goals and concentrate on achievingsuperior results.

• A culture of excellence. We measure our performance on every task we undertake not just by the results butalso by the quality of our work.

• A tradition of success. While we are fair and ethical at all times, we compete aggressively by providing excellentservice to our clients.


Human Resource Development /Avoiding Conflict of Interest

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Avoiding Actual and Perceived Conflict of Interest

The Company is committed to the transparent disclosure, management and monitoring of existing and potentialconflicts of interest. The Company’s Board is also cognizant of its obligations as required under the listedcompanies (Code of Corporate Governance) regulations, 2017, Code of Corporate Governance for insurer2016 to ensure that Directors avoid conflicts of interest between their responsibilities and their other interests.All Board members have a duty to avoid actual or perceived conflicts of interest. Every director of the Companywho is in any way interested in any contract or arrangement to be entered by the Company is required todisclose the nature of his concern or interest to the Board and shall not take part in the discussion or vote onthe matter. Every year in conformity with the section 53 of Companies Act, 2017, COCG and InsuranceCompanies (Sound and Prudent Management) Regulations, 2012, the Directors of the Company are requiredto provide a signed Statement of Compliance. The statement requires all the Directors to disclose the namesof the companies, firms and businesses where they are associated and that they comply with all legal requirementsto hold the position as Directors.

Human Resource Development:

We believe that our employees are our most important asset and that the organization’s success and qualityhappens through people. We ensure that all our employees have the opportunity to develop to their full potentialand use their skills and knowledge for the continuous improvement of the company. We create a work environmentin which employees feel satisfied, empowered and recognized. We promote teamwork, trust and opencommunications to enhance productivity. We release the energies and talents of our people through a consistentperformance management system and a commitment in our style, practices and culture.

Our organization is shaped by exceptional people who are dynamic, emotionally mature team players, and whohave the will, leadership qualities, motivation and vision to succeed in a high performance culture.


Resources, Capital & Changesin Financial Positions / Donations


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Our key resources

Our strongest resources consist on excellent human resources, investment in technology, client network, strongrelation with partner banks and strong market reputation / presence throughout the country. These resourcesadd great value to the entity. We continually developed our human capital through training and development.

Liquidity and financing arrangement

Our liquidity is very proactively by our finance department which is also responsible for working capitalmanagement. The insurance line of business does not require financing arrangements

Capital structure

Rupees in '000'

Capital 1,000,000

General reverse 2,150,000

Accumulated surplus 1,053,434

Above capital structure shows strong capital of the Company and do not reflect any capital inadequacies

Significant changes in financial position

• Total assets increased by almost 6.59%

• Solvency margin increased by 159 Million to 2.26 Billion from 2.1 Billion

• Company paid 150% dividend

Donations

OthersHealthEducationCommunity Development

46% 14%

10%

30%


Sustainability Report

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Sustainability

Energy Conservation

Keeping in view the energy crisis in the country, the company has over time taken steps to reduce its consumption ofelectricity in its premises by taking the following measures:

• Gradual replacement of all lighting emitting sources with energy savers

• Replacement of all LCD based computer monitors with energy efficient LED screens

• Continue Thin Clients implementation in others department to cut down electricity costs and heat emissions.

Occupational Safety and Health

The company believes that proving a safe and pleasant working environment to its staff is one of its core responsibilitiesas an employer. We have taken various steps to ensure that the employees are provided a safe working environment andhave the access to opportunities to develop a healthy lifestyle.

• All permanent employees are covered by a comprehensive Health insurance scheme, Group Life and pay continuationcover

• The office is secured by armed security personnel

• CCTV cameras are set up at key locations within the office premises

• Smoke alarms are installed on the premises along with fire extinguishing facilities

• The Company adheres to strict no smoking policy in its offices for both employees and visitors.

Environmental protection measures:

EFU LIFE is using state of the art Enterprise Content Management technology from IBM Filenet to digitalize paper documentsand automate its business processes and operational workflows (BPM). In 2017, the technology was further implementedin Finance & Accounts, Agency Administration and Group Benefits departments.

ECM is the standard way to manage and organize not only paper document but all forms of organizational content storedin diversified formats. Organizations working in the ECM environment carry out most of their operations using digitaldocuments, stored electronically. Managing organizational content in this way requires specific strategies, methods and tools.

The company has deployed Thin Clients, replacing Desktops machine to achieve the benefits of Data Protection & Security,centralized software management, huge cost saving in power and better control and users management.

EFU LIFE is using Human Resource Management System to manage employees and their matters related to Organizationand Policies. HR Department effectively manages Hiring & Separation, Time Office and Leave Management, Training andDevelopment and Employee Self Portal in a digital way through HRMS.

EFU LIFE always ahead of implementing new technology to facilitate its Business Process. Keeping this strategy in line EFULIFE has deployed Mobile APP to facilitate Sales Force and clients to achieve huge cost saving and minimize Call centerQuery Load.

EFU Life has Access Control Management System on Building level to manage security and video logs of all areas. By havinga proper control room to manage whole building sensitive areas, all challenges managed through a centralized location.

EFU Life is using Enterprise Software of Budgeting to manage Budget on Company level which can expand its monitoringat N-Level to calculate Capital, Expense, profit & Loss etc. The benefit of having Industrial practice budgeting system is toachieve financial milestones in Organization level.

Automating content through the use of Business Process Management is a key enabling factor in improving processefficiency, business agility, continuous process improvement, process quality and eventually customer satisfaction.

EFU LIFE has a keen eye for ensuring that the environment in which we are working stays green. We have minimizedthe usage of filing cabinets, shelves, physical space, paper documents and files which eventually cause paper-pollutionand deforestation; thus creating a positive impact on greenhouse environment which exacerbates global warming.Additionally, in line with this objective, we have focused on centralized printers which are more energy efficient andenvironmentally compliant.



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Policy for safety of records of the company:

In addition to having a data center which is equipped with the latest technologies like virtualization, robotic tapes, FlexTechnology, blade servers and SAN storage devices, we have a Disaster recovery plan in place and also a paperless ECMsolution to digitally store our physical records. The company has two DR sites, and data back-ups are taken on a daily basis.All of these measures help us ensure the safety of records.

The company has procedures to maintain the integrity and availability of data/records and backup & recovery of all mission-critical application and electronic data. As a first step company has also maintained Cold Disaster Recovery site for criticalbusiness data. IT functions with ensuring continuous business operation in case of system or enterprise disaster or failureis in place.

The company has installed latest state of the art Fire Suppression and Detection System to protect its data center. Additionally,we have strengthened our DR Plan with use of Data Guard and Online Transfer of Data to DR Site using Fiber OpticTechnology.

Disclosure of IT Governance Policy

EFU LIFE had moved forward to develop a better and more comprehensive service management structure. All IT strategiesare closely aligned with the business requirements of the company drilling down to departmental objectives. EFU Life iscommitted to ensuring the integrity, reliability, availability and confidentiality of its data and computer systems.

To this aim, the IT Steering Committee has empowered the Information Security to evaluate, establish, maintain and ensurecompliance of control measures to protect the EFU Life's information resources from unauthorized or accidental modification,destruction or disclosure. The Information Security Head will advise the IT Steering Committee on standards, policies, andpractices related to the security, risk assessment and compliance of rules and regulations used in support of InformationSecurity Policies and Procedures.

Data Center

Data centers are central elements of today's businesses, as its host data and services required to deliver customer value.Ensuring the uptime for the data center directly contributes to customer satisfaction and business profitability by preventingloss of sensitive information, service unavailability or compliance problems.

This year EFU LIFE maintain uptime is 99.67%.

Smart Branch Infrastructure

In the year 2018, we have upgraded our branch network infrastructure in 100 locations to Smart Branch Infrastructurewith centrally managed services to enhance user performance and to provide better services. Moreover, for critical branches,we have deployed redundant fiber connectivity to increase their uptime and manage their auto fail-over.

VOIP

We have replaced traditional PBX with digital IP Telephony. VOIP is a technology that allows telephone calls to be madeover computer networks like the internet. It is scalable to a large extent and provides a lot of features. The service allowsmore employees to be provided with Direct Dialing and call receiving capabilities that allow the company to bridge thegap between customers and the internal departments. Therefore, this service aims at meeting the customers' satisfaction,improves business efficiency and productivity, helps increase the number of customers and thus boosts the business growth.Additionally, the cost of using a VoIP telephone is much cheaper than using a conventional phone and calling betweenHead office and the branches are totally free.

Access Control System

EFU LIFE implement Access Control system for restricting access to a building or designated area, like a restricted room.It may include doors into a building, access to certain areas within a building, or even access to outside gates.

Access Control System keeps track of who's coming and who's going, logging every entry and exit of each individual. Withan Access Control System, a business is able to track who comes and goes and what time they arrive and leave.


Audit Committee - Terms ofReference

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The Board Audit Committee comprises of five members, including the Chairman of the committee who is an independentdirector appointed vide circular resolution dated January 10, 2018 to comply with the requirements of Code of CorporateGovernance Regulations 2017 and others are non-executive Directors. The Committee oversees the effectiveness ofinternal controls, internal audit function, compliance with laws and regulations and carry out other responsibilities asassigned by the Board of Directors.

The terms of reference of the Audit Committee as laid down by the Board of Directors are as follows:

1. Determine appropriate measures to safeguard the assets of the company.

2. Review of preliminary announcements of results prior to publication.

3. Review quarterly, half yearly and annual financial statements before they are approved by the Board of Directors,focusing on major judgmental areas, significant adjustments resulting from the audit, the going concern assumptions,any changes in accounting policies and practices, compliance with applicable accounting standards and compliancewith statutory and regulatory requirements.

4. Review of related party transactions entered into during the year and recommending approval of the Board ofDirectors thereon;

5. Facilitate external audit and discuss audit observations with the external auditors arising from interim and finalaudits and any matter that they may wish to highlight (in the absence of management, where necessary).

6. Review management letter issued by external auditor as well as the response of management to the letter.

7. Ensure that proper coordination takes place between external and internal auditors.

8. Review the scope and extent of the internal audit department within the company and ensure that internal auditdepartment has sufficient resources to carry out their tasks effectively and that the department is appropriatelyplaced within the company.

9. Consideration of major findings of the internal investigations of activities characterized by fraud, corruption andabuse of power and management's response thereto.

10. Ascertain that the adequate and effective internal control system including financial and operational controls,accounting system and reporting structure are in place within the company.

11. Review the Company's statement on the internal control systems prior to endorsement by the Board of Directors.

12. Institute special projects, value for money studies or other investigations on any matter specified by the Board ofDirectors, in consultation with the Chief Executive and consider communicating any matter to the external auditorsor to any other external body.

13. Ensure that the company complies with all the rules and regulations and statutory requirements.

14. Monitor compliance with the best practices of Code of Corporate Governance and identification of any significantviolations thereof.

15. Recommend to the Board of Directors the appointment and audit fees of external auditors and consider anyquestion pertaining to the resignation or removal of external auditors.

16. Consideration of any other issue or matter as may be assigned by the Board of Directors.

Sr. No. Name of Directors Number of Meetings attended Status

1. Mr. Kamal Afsar 4 meetings attended Independent Director

2. Mr. Hasanali Abdullah 4 meetings attended Non-Executive Director

3. Mr. Saifuddin N. Zoomkawala 4 meetings attended Non-Executive Director

4. Mr. Muneer R. Bhimjee 3 out of 4 meetings attended Non-Executive Director

5. Mr. Ali Raza Siddiqui 2 out of 4 meetings attended Non-Executive Director


Report of the Audit Committee


58

The Audit Committee comprises of one independent and four non-executive Directors. The Chief Executive Officer(CEO), Chief Financial Officer (CFO) and the external auditors attend Committee meetings by invitation. The ChiefInternal Auditor (CIA) attends Committee meetings as Audit Committee Secretary. Four meetings of the Committeewere held during the year 2018. Based on the reviews and discussions in these meetings, the Committee reportsthat:

1. The Committee reviewed and approved the quarterly, half yearly and annual financial statements of theCompany and recommended them for approval of the Board of Directors.

2. The Company issued a Statement of Compliance with the Code of Corporate Governance which has also beenreviewed by the external auditors of the Company.

3. The Chief Executive Officer and the Chief Financial Officer have endorsed the financial statements of theCompany and the Directors' Report. They acknowledge their responsibility for true and fair presentation ofthe financial statements and compliance with regulations and applicable accounting standards.

4. The financial statements have been prepared in accordance with the approved accounting standards whichcomprise of such International Financial Reporting Standards (IFRS) as applicable in Pakistan.

5. Appropriate accounting policies have been consistently applied in preparation of financial statements andaccounting estimates are based on reasonable and prudent judgment. The financial statements prepared bythe management of the Company present fairly its state of affairs, the result of its operations, cash flows andchanges in equity.

6. Proper books of accounts have been maintained by the Company.

7. The Committee reviewed and approved all related party transactions and recommended them for approvalof the Board of Directors.

8. The Company's system of internal control is sound in design and is continually evaluated for effectiveness andadequacy.

9. For appraisal of internal controls and monitoring compliance, the Company has in place and appropriatelystaffed, Internal Audit department. The Committee reviewed the resources of the Internal Audit departmentto ensure that they were adequate for the planned scope of the Internal Audit function.

10. The role of Internal Audit is to review the adequacy of control activities as well as to ensure implementationof and compliance with the defined policies and procedures. The department also ensures timely follow-upson audit findings to ensure that corrective actions are taken in a timely manner.

11. The Committee on the basis of the internal audit reports reviewed the adequacy of controls and complianceshortcomings in areas audited and discussed corrective actions in the light of management responses. This hasensured the continual evaluation of controls and improved compliance.

12. The Internal auditor has full access to the Chairman of the Board Audit Committee. Further, the internal auditormeets senior management to discuss internal audit reports and is fully independent to access the managementat any time to discuss audit issues in order to make the audit process transparent and effective.


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13. The external auditors M/s KPMG Taseer Hadi & Co., Chartered Accountants had direct access to the Committeeand necessary coordination with internal auditors was ensured. Major findings arising from audits were alsodiscussed.

14. The Committee reviewed the covering Letter issued by the external auditors and the management responsethereto.

15. Appointment of external auditors and fixing of their audit fee was reviewed. The existing auditors M/s KPMGTaseer Hadi & Co, Chartered Accountants, had completed their tenure of five years as on 31st December 2018.However, the Listed Companies (Code of Corporate Governance) Regulations, 2017 requires that all inter-related companies/ institutions, engaged in business of providing financial services shall appoint the same firmof auditors to conduct the audit of their accounts.

The Company sought clearance from SECP for the reappointment of our existing statutory auditors' M/s KPMGTaseer Hadi & Co. Chartered Accountants with partner rotation as the holding company appointed theirexternal auditors' M/s KPMG Taseer Hadi & Co. Chartered Accountants in the year 2017 and their auditorcompleted two years as of 31st December 2018.

SECP vide letter dated 18th January 2019 granted approval to re-appoint existing auditors for the year ending31st December 2019 with partner rotation. Based on the SECP approval, the Committee recommended tothe Board of Directors for re-appointment of M/s KPMG Taseer Hadi & Co. as external auditors and Shariahauditors for the year ending December 31, 2019.


I am pleased to present to you the Twenty Seventh Annual Report of the Company for the year ended 31December 2018.

Economic review:

The economic deterioration which started in 2017 gathered momentum in 2018 where by June 2018 currentaccount deficit increased to USD 18.9 Bn (~6% of GDP) whereas foreign currency reserves declined to USD16.4 Bn. As a result, PKR devalued considerably against the Dollar and State bank increased the policy rateby 425 bps in CY18. The Government is engaging friendly countries and the IMF to address the twin deficitsand providing incentives to revive economic growth; however, the policy measures put into effect in 2018will affect GDP growth in 2019.

Insurance Opportunity:

Pakistan, with its population of over 200 million, and 60% under the age of 25 years, provides a fertilemarket for a significant potential for life insurance business. The burgeoning middle class and increasingawareness on financial services, such and banking and insurance, is creating an environment conducive forgrowth of the life insurance sector. Pakistan has a life insurance penetration rate (gross premiums as % ofGDP) of 0.5%, which is low by international and regional standards, and thus provides an opportunity forgrowth in the years to come. The Government has adopted a strategy of creating an enabling environmentfor financial inclusion of the under served population, and insurance can act as a pillar of this strategy resultingin further expansion of the life insurance pie in the next 5 to 10 years.

Insurance and Takaful industry:

The life insurance and family takaful industry of the Country comprises of nine players. With a 27 year richhistory of successful life insurance operations, your Company is one of the leading players in the private lifeinsurance sector. The life insurance industry gross premium has crossed the Rs. 200 Billion mark, registeringa 5 year annualized growth of over 20%, and the future outlook is positive.

The regulatory environment for life insurance remained conducive to growth, with the Securities and ExchangeCommission of Pakistan taking a lead on many fronts in engaging with the industry and strengthening theregulatory regime in various areas.

Company's performance:

Your Company's gross premium (including Takaful contributions) was Rs. 30.79 billion. All distributionchannels contributed positively to this performance. During the year, the Company's statutory funds generateda surplus of Rs. 2.14 billion. Out of this surplus, Rs. 1.98 billion was transferred to the Profit & Loss Accountafter retaining the amount necessary to meet 100% Solvency Margin requirement. After including theperformance of the Shareholders' fund, your Company made an after tax profit of Rs. 1.58 billion.

The Board has developed a vision and mission statement, overall corporate strategy and significant policiesof the Company. These are aimed at providing the management of the Company a strategic direction anda long-term vision for the business.

Keeping in view this direction from the Board, the Company continues to excel in the private life insurancesector of the country. The overall insurance industry is on a growth trajectory and the Company has a positiveoutlook for the industry over the next 5 years. The Board will continue to play its vital role in steering thestrategic direction of the Company to ensure that it remains amongst the leading life insurance companiesand solidifies its market position in the years to come.

On behalf of the Company, I would like to record my appreciation for the tremendous contribution madeby the able and eminent officers, staff and distribution channels of the Company towards its developmentand growth. My gratitude is also due to EFU General Insurance Ltd. for their continuous support and guidance,which has enabled the Company to establish a strong presence in the market.

Chairman's Review


60


61

2.141.98

1.58

30.79


Report of the Directorsto the Members


62

The Directors of your Company are pleased to present to

you the Twenty Seventh Annual Report of the Company

for the year ended 31 December 2018. The company is a

subsidiary of EFU General Insurance Limited on the basis

of its ability to control the composition of Directors of EFU

Life Assurance Limited effective 31 March 2018.

Business Performance:

Your Company's gross premium (including Takaful

contributions) was Rs. 30.79 billion (2017: 31.42 billion).

The gross premium composition in 2018 was as follows:

Individual Life regular premiums (including Takaful

contributions) increased by 24% reaching a total premium

of Rs.25.18 billion (2017: Rs. 20.4 billion).

Individual life New Business recorded a growth of 28%

reaching a premium of Rs. 6.85 billion (2017: 5.34 billion).

Bancassurance has been the driving force behind this growth.

Renewal premium base increased to Rs. 18.33 billion (2017:

Rs. 15.05 billion), recording a steady growth of 22%.

Apart from maintaining a good persistency in the Sales

Force channels, the Company has made significant efforts

to improve the Bancassurance channel persistency during

2018. These efforts have resulted in better client retention

resulting in an overall (2nd year and onwards) persistency

of 90%.

The Group Benefits line of business achieved a gross

premium, including Takaful contributions, of Rs. 3.19 billion

(2017: Rs 2.84 billion), registering a growth of 12%.

The Gross Premium growth trend over the last 5 years is

as follows (including Takaful contributions):

Single Premium was Rs. 2.59 billion (2017: 8.26 billion).

The Window Takaful line of business, under the dedicated

brand Hemayah, has shown consistent growth and

penetration into the various market segments. In 2018,

the Company achieved an Individual Family takaful new

business of Rs. 1.43 billion (2017: 831 million), a growth

of 72%. For Group Family Takaful, the Company achieved

a business of Rs. 224 million. (2017: 165 million), a growth

of 36% The Company expects this line of business to

continue its growth trajectory during 2019.

Claim payments:

Prompt claim settlement lies at the core of the Company's

business model. The Company paid total death and disability

Group BenefitsIndividual Life Regular

GROSS PREMIUM GROWTH5 YEAR SUMMARY

(Individual Life Regular Premium & Group Benefits)(Rupees in Billions)

0

5.00

2014

10.00

15.00

20.00

30.00

2015 2016 2017 2018

25.00

13.91

1.7

7

15.602

.12

17.84

2.4

4

20.39

2.8

4

3.1

9

25.18

Group Benefits

Single Premium

Renewal Premium

First Year Premium

GROSS PREMIUM COMPOSITION

8%

10%22%

60%


63

Investment Income was Rs. 145 million, a significant reversal

over the loss of Rs. 3.6 billion in 2017.

This net asset value of funds under management continues

to place your Company amongst the leading asset managers

in Pakistan. The Company offers the following funds to

its clients, varying by the investment strategy and risk

appetite of the clients:

For Conventional unit linked business:

Managed Growth Fund

Guaranteed Growth Fund

Aitemad Growth Fund

Aggressive Growth Fund

For Takaful unit linked business:

Takaful Growth Fund

Aggressive Growth Fund

The Company has a strong balance sheet size with total

assets of Rs. 116.76 Billion (2017:109.55 billion), a growth

of 7%. The composition of assets is as follows:

OBSERVATION IN THE AUDITORS' REPORT:

The statutory auditors have issued qualified opinion on

account of Sales Tax on Life Insurance Premium due to

reason explained below:

claims of Rs. 2.55 billion (2017: 2.60 billion) with individual

and group life claims amounting to Rs. 665 million and Rs.

1.882 billion, respectively in 2018.

Investment Performance:

The Company follows a prudent and pro-active approach

for investment management considering that investment

income is one of the key components of profitability. 2018

proved to be a challenging year for the capital markets as

the PSX-100 index posted consecutive negative returns for

two years after more than twenty years. The index reached

its peak in April however following a brief rally post General

Elections, declined as investors preferred safer avenues

amidst sharp devaluation of the rupee and steep interest

rate hikes leading the index to post negative return of

8.41% in 2018.

The net asset value of all unit linked funds under

management increased from Rs. 99.2 billion to Rs. 104

billion in 2018, a growth of 4.8%. At the same time, Net

Other Fixed Income SecuritiesCash and Bank Deposits

Government Securities Shares and Mutual Funds

Current Assets Fixed Assets

45%

17%

4%

29%

3% 2%

ASSETS COMPOSITION

Group BenefitsIndividual Life Regular

GROSS DEATH &DISABILITY CLAIMS5 YEAR SUMMARY

(Rupees in Millions)

0

200

2014

400

600

800

1000

2015 2016 2017 2018

1,200

1,400

16,00

18,00

2,000

665

1,88

2

530

1,11

0

606

1,16

3

787

1,64

3

684

1,87

8

2,200



64

Sales Tax on Life Insurance Premium

The Company has not provided for and billed their customers

for Sindh Sales Tax for the period from 1st July 2018 to

31st December 2018 and Punjab Sales Tax for the period

from 1st November 2018 to 31st December 2018 on risk

premium of life insurance business.

Sindh Revenue Board (“SRB”) has been granting exemption

for sales tax on life insurance premium on a year to year

basis which had expired on 30 June 2018. However, sales

tax on life insurance premium on policies written in Punjab

has been made applicable from 01November, 2018 and

Balochistan Revenue Authority had imposed sales tax on

life insurance premium effective 01 January 2015.

We are of the view that the levy of sales tax on life insurance

business is not fair and is unjust. The matter for the renewal

of the exemption was taken up at the collective level by

the Insurance Association of Pakistan (IAP) with the sales

tax authorities. Further, the Sindh Cabinet in its meeting

held on 27th Feb 2019 has also deferred the levy of taxes

on Health and Life Insurance premium till the next financial

year. The Company has also sought a legal opinion from

the legal counsel and based on his opinion and, in view of

the fact that the matter is under the process of review with

the taxation authorities, the Company has not billed sales

tax on life insurance premium to its customers amounted

to Rs 1,315.33 million. Based on the IAP's discussions with

the sales tax authorities, the decision of the Sindh Cabinet

and the legal opinion, we are hopeful that the exemption

will be granted. Accordingly, the provision against sales

tax liability has not been made by the Company in these

financial statements as the discussions are still in progress.

Profitability:

During the year, the Company's statutory funds generated

a surplus of Rs. 2.14 billion.

Out of this surplus, Rs. 1.98 billion was transferred to the

Shareholders' Fund after retaining the amount necessary

to meet 100% Solvency Margin requirement. Your

Company made an after-tax profit of Rs. 1.58 billion.

Earnings Per Share

The earnings per share for the year was Rs 15.81 (2017:

Rs 19.10)

Appropriation and Dividend:

Your Directors have pleasure in recommending a dividend

of Rs. 11.25 per share i.e. 112.50% to the Shareholders

of the Company whose names appear in the Share Register

of the Company at the close of business on 16/04/2019.

This cash dividend is in addition to interim cash dividend

of Rs. 3.75 per share ( 37.5%) declared during the year.

Rupees '000

The amount available for appropriation is

Amount brought forward

from previous year 93,383

Profit after tax for the year 1,909,962

Capital Contribution-

Window Family Takaful (90,116)

Retained Earnings on Account of

Ledger D - Solvency Margin (97,581)

Amount available for appropriation 1,815,648

Interim Dividend for 2017

@ 37.5% (2016: 30%) 375,000

Final cash dividend for 2017

@ 112.5 % (2016: 120%) 1,125,000

Transfer to general reserve 250,000

1,750,000

Unappropriated profit

Carried forward 65,648

Profit after tax for the year 1,581,333

Capital Contribution -

Window Family Takaful (12,809)

Retained Earnings on Account

of Ledger D - Solvency Margin (205,738)

Available for appropriation 1,428,434

The Directors recommend that this

amount to be appropriated

in the following manner

Interim Dividend for 2018

@ 37.5% (2017: 37.5%) 375,000

Proposed final cash dividend

2018 @ 112.50% (2017: 112.50%) 1 125 000

Proposed transfer from general reserve (150 000) (1 350,000)

78,434

Market Share

Based on the figures compiled by the Insurance Association

of Pakistan, as of 30 September 2018 the Company has a


65

market share of 30% in the private life insurance sector

companies based on the gross premium income.

Increasing outreach

Pakistan offers tremendous opportunity longer term for

growth of life insurance due to its low insurance penetration

and a burgeoning middle class, through protection and

savings solutions.

The Company has a robust product range covering key

financial planning needs and focusing on the main segments

of the society - ranging from micro up to the high net

worth segment. The Company offers conventional and

takaful products which focus on the needs of savings and

wealth accumulation, child education and marriage,

retirement planning, as well as protection. For the micro

insurance segment, the company focuses on protection

solutions such as term life, personal accident and hospital

cash.

During 2018, the Company further consolidated its product

range by augmenting the existing menu offered through

the sales force as well as bancassurance partners. At the

same time, the Company strengthened its presence in the

micro and mass market segments, and launched innovative

financial solutions with telecommunication companies,

branchless banks, microfinance institutions and technology

platforms.

The Company has various distribution channels for its two

main lines of businesses - Individual Life and Group Life.

For its Individual Life business, the Company utilizes the

Agency Sales Force and Bancassurance channels. As part

of the Agency Sales Force, the Company also has a dedicated

team for Takaful.

For its Group Life line of business, the Company utilizes its

dedicated marketing team, commercial banks, and other

intermediaries such as telecommunication companies,

Branchless Banks, MFIs and MFBs, as well as digital and

payment platforms.

The Company has an individual life branch network of over

200 locations across the country. For Bancassurance, the

Company has a partnership with 14 banks.

Recognizing the penetration of e-commerce and evolution

of online market places, along with increasing internet

density and insurance awareness, the Company ventured

into the digital space for online distribution of insurance

products and launched “BuyNow” platform on its website.

The Company believes that over a period of time, the online

channels will contribute to the digital financial inclusion

strategy and help to expand the insurance safety net to a

larger segment of the population

Family Takaful

The Company offers its takaful range of products under a

dedicated brand “Hemayah”, through its individual life

and takaful sales force, bank partners and group benefits

setup. 2018 is the fourth year of Window Takaful

Operations.

During 2018, the new business contribution of takaful in

the total Individual Life/Family takaful segment was as

follows:

The Company expects this new line of business to grow

over a period of time and contribute positively to the top

line as well as bottom line.

Critical performance measures:

The Company evaluates its performance on certain keydefined measures such as:

• Growth in premium for each line of business

• Number of lives insured

• Persistency of individual life business by distributionchannel

• Loss ratio analysis for short term business

• Expense ratios and trends

79%

21%

Family Takaful New BusinessIndividual Life New



66

The Company continued to consolidate the services providedby its Tier III compliance level state of the art Data Center.The Company achieved 99% uptime for the data centerproviding uninterrupted services to its various internal andexternal customers.

The Company had significantly enhanced its NetworkSecurity framework in 2017 and in 2018 continued withits 360-degree strategy to defend against variousCyberattacks, by managing the connectivity and integrationof all stakeholders with the Head Office that includebranches, agents' devices, clients, bancassurance and otherbusiness partners.

The Branch infrastructure has been upgraded and morethan 100 locations are in the Smart Branch category withcentrally managed services to enhance user performanceand to provide better services. Moreover, critical brancheshave been deployed with redundant fiber connectivity toincrease their uptime and manage their auto fail-over.

The Company further continued its focus on mobile apps.A new app was launched for the Takaful Sales Force whichprovides hierarchy-wise details and access to all business-related information, portfolio management, claimsintimation, leads follow-up, as well as facility of uploadingdocuments. In addition, tie ups with branchless banks'mobile wallets for premium collection were done duringthe year. Sales consultants can also collect card-basedpayments via their Agent App. A link with NADRA hasbeen created and setup in Sales Branches for verificationof client identity for Maturity and Surrenders.

Human Resource Management:

Your Company believes that investment in developing andmotivating staff plays a pivotal role in their positivecontribution to the current and future success of theCompany. During 2018, the Company continued to focuson the career development of its professional life insurancemanagement team. Our staff includes experienced insurancesales personnel, accountants, IT professionals, underwriters,medical doctors, lawyers, business management graduatesand actuaries, to name a few.

The Company actively supports its staff to acquire relevantprofessional qualifications and has in place career programslinked to international professional bodies in the field ofactuarial science, finance, accounting, underwriting andclaims management.

The Company has in place a succession plan for keyindividuals of the management team. In 2018, succession

• Mortality and morbidity experience

• Growth in profitability for each line of business

The Company expects these parameters to be relevant forfuture as well and will continue its internal performancemeasurement based on these criteria.

Insurer Financial Strength Rating:

The Company has an IFS rating of AA+ (Outlook: Stable)by JCR VIS Credit Rating Agency. The rating takes intoaccount the Company's strong capitalization level vis-à-visthe nature of risks underwritten and the very high capacityto meet policyholders' obligations. The rating reaffirmationrecognizes the Company's strong financial footing, long-term sustainable business strategies, innovative products,superior systems and IT infrastructure, satisfied clients andprudent investment policies resulting in good medium tolong term returns to our clients.

Awards and Achievements:

Your Company's performance and market leadership wasrecognized by various independent entities during the year.The Company received the following prestigious awardsduring 2018:

• Corporate Excellence Award by ManagementAssociation of Pakistan

• Consumer Choice Award 2017 - for Best Life InsuranceCompany in Pakistan for 10th consecutive time, forexcellence in management practices and service quality.

• Brand of the Year award 2017

• EFU Life Assurance's Annual Report 2017, '25 Years ofGrowing Together' ranked in the Top three in the BestCorporate Report (BCR) Award 2017 in the Non-BankingFinancial Institutions Category by ICAP & ICMAP forbest presented accounts

• 'Certificate of Merit' by South Asian Federation ofAccountants (SAFA) for Best Presented Accounts 2017in the insurance sector, within South Asian countries

• Winner of 'Best Life Insurance Company 2018 inPakistan' at the 2018 International Finance Awards

• CSR Award 2018 for Social Impact

• Digital Innovation Award 2018 for mobile app

• Upgrade of ISO Certification to ISO-9001:2015

Operational Efficiency and Technology:

In 2018, the Company continued its focus on creatingOperational efficiencies using technology as an enabler.Some key developments are as follows:


67

planning was also introduced at a departmental level toensure the continuity of middle management and toreinforce managerial capacity.

The performance management system was overhauledwith a key emphasis on ensuring individual and teamproductivity and growth, greater transparencies ofperformance evaluation and ensuring continuous, relevantand timely performance feedback to our employees.

Capacity enhancement and learning and development wasa key area of focus during the year. A comprehensivecapacity enhancement program was initiated to help buildand reinforce professional and managerial capacities in ourstaff and management. The annual employee engagementsurvey was conducted for the second time in 2018 andrecorded high levels of employee satisfaction andengagement comparable to international benchmarks andgave useful insights that are being used to ensure employeeretention and productivity. A similar survey was also rolledout for the sales force subsequently.

The Company also began several health and wellnessinitiatives for our staff in 2018 that will continue into 2019.Several employee engagement activities were routinelyconducted throughout the year to ensure that our teamremained motivated, productive and engaged with theCompany.

Environment

The Company has consciously invested in technology toreduce the usage of paper in its offices. The EnterpriseContent Management technology from IBM Filenet hasover time expanded into key functions of the Company,to digitalize paper documents and automate businessprocesses and operational workflows (BPM). The Companyhas a keen eye on ensuring that the work environmentstays green. Due to this system, the Company has minimizedthe usage of filing cabinets, shelves, physical space, paperdocuments and files which eventually cause paper-pollutionand deforestation; thus, creating a positive impact on thegreen house environment which exacerbates globalwarming.

Capital Management and Liquidity

The Company has adequate capital to support its existingoperations. The Company's paid up capital of Rs. 1 billionis the highest in the private life insurance sector.

The Company's liquidity position also remained very strongwith cash and cash equivalents at the end of 2018 of Rs.19.8 billion (2017: Rs. 18.5 billion).

Related Party Transaction

At each Board meeting the Board of Directors approve theCompany's transactions made with Associated Companiesand Related Parties. All such transactions are executed onarm's length basis.

Internal Audit function

The Board is responsible for effective implementation of asound internal control system including compliance withcontrol procedures. The Audit Committee is assisted by theInternal Auditor in reviewing the adequacy of operationalcontrols and in monitoring and managing risks to providereasonable assurance that such system continues to operatesatisfactorily and effectively in the Company and to addvalue and improve the Company's operations by providingindependent and objective assurance. The principalresponsibility of the Internal Auditor is to conduct periodicaudits and to ensure adequacy in operational controls,consistency in application of policies and procedures,compliance with laws and regulations.

As part of Corporate Governance, your Company hasUnderwriting Committee, Claims Settlement Committee,Reinsurance Committee, Risk Management and ComplianceCommittee.

Risks to business:

Business risks and mitigation factors are described in detailon page (30) of this Annual Report.

CSR Initiatives

The Company focuses on three key areas for developingsustainable projects for community development -education, health and environment. We encourage ouremployees to volunteer regularly and are continuouslyexploring avenues for empowering individuals to becomeresourceful individuals of the community.

The key CSR initiatives during 2018 are as follows:

Commemorating World Thalassemia Day

An awareness session on Thalassemia was conducted forthe employees, followed by Thalassemia screening and ablood donation drive. In addition to this, Afzaal MemorialTrust Blood Bank is supported by EFU Life.

Celebrated the 6th 'Insurance Day' with students ofSOS Children's village

EFU Life has been supporting SOS Children's Village formany years. This insurance day, the Company arranged a



68

to business and regulations. Statement of Ethics and businesspractices are based on integrity, dignity, culture of excellenceand ethical dealing with clients, peers and the public.

Relationship with other Stakeholders

Your Company strives to maintain good relationship with:

• Its employees by providing a positive work environment• Its clients through building trust and providing quality

service• The business community through honest and fair dealing• The Government through promoting free enterprise

along with competitive market system and complyingwith all applicable laws; and

• Society in general through providing safe and healthyworkplace and provide employees the opportunity toimprove their skills

Contribution to National Exchequer

Your Company contributes substantially to the nationaleconomy in terms of taxes and duties and the contributionis increasing as the company grows. This year the Companycontributed Rs.902 Million to the national exchequer inthe form of Income Tax, Federal Excise Duty, Sales Tax,stamp duty etc.

Compliance with Code of Corporate Governance

The requirements of the Code of Corporate Governanceset out by the regulatory authorities have been duly compliedwith. A statement to this effect is annexed with the report.

The Directors of your Company were elected at the ExtraOrdinary General Meeting held on June 20, 2017 for aterm of three years expiring on June 21, 2020.

The number of meeting attended by each Director is givenhereunder:

Sr. Number of meetingsNo Name of Directors attended

1. Rafique R Bhimjee 4 out of 42. Saifuddin N Zoomkawala 3 out of 43. Taher G Sachak 4 out of 44. Ali Raza Siddiqui 3 out of 45. Muneer R Bhimjee 3 out of 46. Hasanali Abdullah 4 out of 47. Heinz Walter Dollberg 2 out of 48. Salman Rasheed 4 out of 49. Kamal Afsar 4 out of 4

Board Committees

Your Company maintains the following three BoardCommittees.

carnival at a Theme Park in Karachi, whereby the employeesset up different stalls of food and fun activities, and alsoput up a musical show to entertain the children of SOSChildren's Village.

Family Educational Services Foundation (FESF) Craftstore

A daylong session was arranged with FESF held at EFU LifeHead Office to create awareness about FESF initiatives,along with the setup of a craft store, whereby employeeswere encouraged to buy the merchandise developed bythe children of FESF. All proceeds from the sale were givento FESF.

'Join Hands for a Life' Social Media Campaign

The Company ran a Ramadan Campaign on EFU Life SocialMedia pages, with SIUT, LRBT, FESF, and Dar ul Sukun, tocreate awareness about the NGO's, with donations madeto the respective NGO's on every engagement on the postsin terms of Likes, Shares and Comments.

Fund Raising for LRBT

LRBT Fund Raising Musical Event Sponsored by EFU Life tocreate awareness about the LRBT initiatives.

Supporting the cause of Education with TCF

EFU Life has a longstanding partnership with TCF, wherebywe donate Rs.50 on every education policy sold throughany of our distribution channels.

Other than the financial contribution to TCF, the Companyactively participates in TCF Rahbar Program, whereemployees volunteer in the many schools of TCF.

Meri Shaan Mera Pakistan - Beautifying the citythrough Wall Art

'Meri Shaan Mera Pakistan' campaign was initiated in 2016,with 3 projects conducted so far with an objective to reclaimthe walls of major public areas of the city through thematicwall art, aimed at eradicating wall chalking and negativityon walls. The campaign rejoiced the spirit of patriotism anddepicts the rich cultural heritage of Pakistan. The projectis on-going, and the walls are regularly maintained by theCompany to keep them vibrant.

Business Ethics, Consumer Protection and anti-corruption measures

The Board has adopted the statement of ethics and businesspractices. All employees are informed of this statementand are required to observe these rules of conduct in relation


69

Audit Committee:

The Board is responsible for effective implementation of asound internal control system including compliance withcontrol procedures. The Audit Committee is assisted by theInternal Auditor in reviewing the adequacy of operationalcontrols and in monitoring and managing risks to providereasonable assurance that such system continues to operatesatisfactorily and effectively in the Company and to addvalue and improve the Company's operations by providingindependent and objective assurance. The principalresponsibility of the Internal Auditor is to conduct periodicaudit to ensure adequacy in operational controls, consistencyin application of policies and procedures, compliance withthe laws and regulations. The Committee comprises ofthe following members:

1. Kamal Afsar (Chairman)2. Saifuddin N Zoomkawala3. Muneer R Bhimjee4. Hasanali Abdullah5. Ali Raza Siddiqui

Investment Committee

The Company has a Board level Investment Committeethat meets on by-monthly basis to review the investmentportfolio. The Committee is also responsible for developingthe investment policy for the various funds managed bythe Company. The Committee comprises of the followingmembers:

1. Rafique R Bhimjee (Chairman)2. Saifuddin N Zoomkawala3. Taher G Sachak4. Hasanali Abdullah5. Omer Morshed - Appointed Actuary6. S. Shahid Abbas - Management Executive7. Mohammed Ali Ahmed - Management Executive8. S. Mohammed Owais - Management Executive

Ethics, HR & Remuneration Committee

The Committee is responsible for recommending to theBoard resource management policies of the Company aswell as selection, evaluation and compensation of the keyofficers of the Company. The Committee comprises of thefollowing members:

1. Kamal Afsar (Chairman)2. Rafique R Bhimjee3. Saifuddin N Zoomkawala4. Taher G Sachak

Management Committees:

As part of Corporate Governance, your Company maintainsfollowing four Management Committees which meet atleast once every quarter:

• Underwriting Committee• Claim Settlement Committee• Reinsurance Committee• Risk Management and Compliance Committee

The Board has approved the re-composition of the RiskManagement and Compliance Committee by including thename of S. Abdul Mujeeb (Manager in Actuarial department)who is responsible for ERM (Enterprise Risk Management)function. After his induction, re-constitutional committeeconsists of the following members:

Risk Management & Compliance Committee

• Taher G. Sachak (Chairman)• Mohammed Ali Ahmed• S. Shahid Abbas• Zain Ibrahim• Ali Qureshi• Abbas Hussain• S. Abdul Mujeeb

Corporate and Financial Reporting Frame Work

a) The financial statements prepared by the managementof the Company present fairly its state of affairs, theresult of its operations, cash flow and changes in equity.

b) Proper books of accounts have been maintained by theCompany.

c) Appropriate accounting policies have been consistentlyapplied in preparation of financial statements andaccounting estimates are based on reasonable andprudent judgment.

d) The International Accounting Standards, as applicablein Pakistan, have been followed in preparation offinancial statements and any departure there from hasbeen adequately disclosed.

e) System of internal control is sound in design and hasbeen effectively implemented and monitored.

f) There are no significant doubts upon the Company'sability to continue as a going concern.

g) There has been no material departure from the bestpractices of Corporate Governance, as detailed in thelisting regulations.

h) The key operating and financial data for the last sixyears is annexed.

i) The value of investments of provident and pension



70Karachi March 22, 2019

increased insurance penetration and expansion of thefinancial protection safety net. At the same time, alternativemass market channels focusing on including a larger numberof lives under the insurance net will continue to be exploredby the companies, as part of the Government's NationalFinancial Inclusion Strategy, using technology as an enabler.With the expansion of the distribution channels, theCompany expects the industry players to focus more onimproving the productivity.

With the opening up of window takaful operations during2015, and several window takaful operators having startedoperations, the Company expects takaful outreach toexpand and contribute positively in increasing the size ofthe insurance pie. Technology will play a key role in theindustry's future strategy. The Company expectsinvestments in enhancing the technology base for back-end operations and for front-end sales and services toclients.

Acknowledgements:

We wish to recognize and place on record our appreciationof the contribution made by our Appointed Actuary Mr.Omer Morshed for his invaluable advice on the overallstrategy of the Company.

We would also like to record our appreciation and gratitudeto Munich Re who are your Company's main reinsurersand who continue to provide full support to your Company.

Our gratitude is also due to EFU General Insurance Ltd. fortheir continuous support and guidance, which has enabledthe Company to establish a strong presence in the market.

The Directors wish to record their appreciation for thetremendous contribution made by the able and eminentofficers, staff and field force of the Company towards itsdevelopment and growth. Their continuous commitmentto high ethical standards, client service and hard work hashelped your Company emerge and maintain its position asa leading player amongst the private sector life insurers.

Finally, we would like to thank our clients for the confidenceexpressed in us and also to the Insurance Division of theSecurities and Exchange Commission of Pakistan for theirguidance, co-operation and understanding extended to usthroughout the year.

funds based on their un-audited accounts as onDecember 31, 2018 were the following.

Provident Fund Rs. 464 MillionPension Fund Rs. 303 Million

The value of investments includes accrued interest.

j) Trading of Shares by Chief Executive, Directors, ChiefFinancial Officer, Company Secretary, their spouses andminor children:

1ST OCTOBER 2018 TO 31ST DECEMBER 2018

PURCHASE OF SHARES No. Of Shares

EFU General Insurance Ltd. 24,800

Rafique R. Bhimjee 15,200

Mohammed Ali Ahmed 2,900

SALE OF SHARES No. Of Shares

NIL NIL

k) The statement of shareholding in the Company as at31 December 2018 is included with the Report.

Our external auditors' KPMG Taseer Hadi & Co. CharteredAccountants completed their tenure of five years as of 31stDecember 2018 which is the maximum period allowed asper CCG for insurers, 2016. The CCG for Insurers requiresthe insurer to change their external auditors every fiveyears. However, the Listed Companies (CCG) Regulations,2017 requires that all inter-related companies/ institutions,engaged in business of providing financial services shallappoint the same firm of auditors to conduct the audit oftheir accounts. As auditors of our Holding Company, EFUGeneral Insurance Limited are KPMG Taseer Hadi & Co,Chartered Accountants, who have completed two years asof 31st December 2018. To comply with the aboverequirements, we sought clearance from SECP for thereappointment of our existing statutory auditors' KPMGTaseer Hadi & Co. Chartered Accountants with partnerrotation which got approved through letter Ref No.ID/OSM/EFULife/2019/220 dated January 18, 2019.

Future Outlook of the industry:

Your Company continues to maintain a positive outlookon the next 5 years of the life insurance and family takafulindustry. Distribution channels and their effective utilizationwill continue to be the primary driving force resulting in an

HASANALI ABDULLAH SAIFUDDIN N. ZOOMKAWALA TAHER G. SACHAK RAFIQUE R. BHIMJEEDirector Director Managing Director & Chairman

Chief Executive


71



72


73



74


75



76


77



78


79


Risk and Opportunity Report


80

Operational Risk Regulatory changes The Company believes in having a transparent and openrelationship with the regulator. Representatives of theCompany are part of the discussion process with theregulator for potential changes to regulatory environment.The Company works closely with peers on matters ofimportance for the insurance industry.

Human Resources The Company provides a professional working environment,market competitive remuneration and career enrichmentopportunities. Succession planning is in place for key employees.

Temporary loss of Business Continuity Plan is in placebusiness continuity

Loss of Data, Technology Disaster Recovery Plan is in placefailure, Data Security

Financial Risk Adverse changes in the The Investment monitoring setup governed by theequity market and interest Investment Committee ensures a diversified portfolio ofrate environment securities with continuous monitoring of the economy,

as well as equity, debt and money markets. InvestmentPolicy takes into account limits of exposure in the equitymarket.

Default in debt instruments Prudent exposure limits are set with regular monitoringas well as investment in high credit rated securities.

Reinsurance Risk Default of reinsurer on its Use of internationally regulated reinsurers with high creditobligations, or its exit from ratings, and maintaining a diversified portfolio of reinsurers.Pakistan

Commercial Risk Increased competition from The Company focuses on its brand equity and financialexisting and new players strength, as well as pricing, product features and customerin the industry services to always gain a competitive edge.

Reputational Risk Events or acts due to which the The Company maintains a strong and open relationshipCompany's reputation with all stakeholders. Internal governance and controlcomes into question documents are in place to aid good governance. Prompt

and effective communication is carried out.

Risk and Opportunity Report: The Company considers the following to be important risks:

Category of risk Risk Impact Plans and strategies for mitigating these risks

Opportunities:Pakistan's life insurance penetration rate is 0.54%, one of the lowest in the world. Such a large uninsured population providesa significant opportunity to the Company in the following areas:

• Increasing reach to all parts of the country through expanding distribution network, and identification and utilization ofemerging and unconventional channels.

• Focus on insurance awareness through continuous investments in communication channels and market education

• Focus on “Inclusive Insurance” approach by offering affordable financial planning solutions for the micro and mass segments

• Offer takaful solutions through window operations

• With increasing mobile penetration amongst the masses, utilize such platforms for customer interaction, awareness, marketingand sales.

Key sources of uncertainty:The Key sources of uncertainty in estimation of future benefit payments and premium receipts are as follows:

• Adverse Mortality and Morbidity experience

• Unexpected changes in Lapses and Surrenders

• Expense overruns

• Interest rate movements


DuPont AnalysisFor the year 2018

81

x

Net ProfitMargin

5.21%

Asset TurnOver

0.26 Times

Return onAssets

1.35%

/

/

OwnersEquity

6,027,596

Total Assets

116,764,611

OwnershipRatio

5.16%

–

+

/

/1,581,333

Revenue30,372,245

Profitafter Tax

Total Assets116,764,611

Return onEquity

26.2%

Revenue30,372,245

Expenses28,790,912

–

OwnersEquity

6,027,596

TotalLiabilities

110,737,015

CurrentAsset

8,485,309

Non CurrentAsset

108,279,302

+

CurrentLiabilities

3,133,478

Non CurrentLiabilities

107,603,537

+

(Rupees in '000)


Summary of Cash Flow


82

Summary of cashflow statement for the year ended 31 December 2018

Cashflow 2018 2017 2016 2015 2014 2013

Net cashflow from operating Activity 7 835 807 7 299 968 212 450 15 860 606 7 939 450 5 765 564

Net cashflow from investing Activity ( 4 997 258 ) 376 356 ( 1 223 448 ) ( 8 220 388 ) ( 7 237 128 ) 614 911

Net cashflow from financing Activity ( 1 500 000 ) ( 1 575 000 ) ( 1 000 000 ) ( 900 000 ) ( 650 000 ) ( 490 000 )

Cash and cash equivalent 1 338 549 18 496 913 12 395 589 14 406 587 7 666 369 7 614 047

Net cashflow from financing Activity

Cash and cash equivalent

Net cashflow from investing Activity

Net cashflow from operating Activity

0

20%

40%

60%

80%

100%

-40%

-20%

2017 2013

2014

2015

2016

2018


Segment - Wise Review

83

Your Company's gross premium (including Takaful contributions) was Rs. 30.79 billion (2017: 31.42 billion). Thegross premium composition in 2018 was as follows:

Individual Life regular premiums (including Takaful contributions) increased by 24% reaching a total premium ofRs.25.18 billion (2017: Rs. 20.4 billion).

Individual life New Business recorded a growth of 28% reaching a premium of Rs. 6.85 billion (2017: 5.34 billion).Bancassurance has been the driving force behind this growth.

Renewal premium base increased to Rs. 18.33 billion (2017: Rs. 15.05 billion), recording a steady growth of 22%. Apart from maintaining a good persistency in the Sales Force channels, the Company has made significant effortsto improve the Bancassurance channel persistency during 2018. These efforts have resulted in better client retentionresulting in an overall (2nd year and onwards) persistency of 90%.

The Group Benefits line of business achieved a gross premium, including Takaful contributions, of Rs. 3.19 billion(2017: Rs 2.84 billion), registering a growth of 12%.

The Gross Premium growth trend over the last 5 years is as follows (including Takaful contributions):

Single Premium was Rs. 2.59 billion (2017: 8.26 billion).

The Window Takaful line of business, under the dedicated brand Hemayah, has shown consistent growth andpenetration into the various market segments. In 2018, the Company achieved an Individual Family takaful newbusiness of Rs. 1.43 billion (2017: 831 million), a growth of 72%. For Group Family Takaful, the Company achieveda business of Rs. 224 million. (2017: 165 million), a growth of 36% The Company expects this line of business tocontinue its growth trajectory during 2019.

GROSS PREMIUM COMPOSITION

Group Benefits

Single Premium

Renewal Premium

First Year Premium

8% 22%

10%

60%


Performance at a Glance


84

Graphical Presentation

10000

SHARE HOLDER’S EQUITY(Rupees in million)

0

20000

30000

40000

50000

Paid-up capital Reserve

60000

2013 2014 2015 2016 2017 2018

INVESTMENTS(Rupees in million)

Government securities

Other fixed income securities

Listed equities, mutual funds and unlisted equities

0

50000

30000

20000

10000

40000

60000

2013 2014 2015 2016 2017 2018

Assets Liabilities

0

80000

60000

40000

20000

100000

120000

ASSETS & LIABILITIES(Rupees in million)

2013 2014 2015 2016 2017 2018

30000

33000

21000

18000

GROSS / NET PREMIUM(Rupees in million)

Gross Premium Net Premium

27000

24000

15000

3000

0

2013

6000

9000

12000

2014 2015 2016 2017 2018


85

NET PREMIUM & SURPLUS BEFORE TAX(REVENUE ACCOUNT)

(Rupees in million)

0

24000

20000

16000

12000

8000

4000

Surplus before taxNet premium

28000

32000

2013 2014 2015 2016 2017 2018

PROFITABILITY(Rupees in million)

Profit after TaxProfit before Tax

1 500

1 000

500

2 000

0

2 500

3 000

2013 2014 2015 2016 2017 2018

15.00

20.00

EARNING PER SHARE &PRICE EARNING RATIO

Earning Per Share Price Earning Ratio

0

10.00

5.00

2013 2014 2015 2016 2017 2018

PROFIT (LOSS) AFTERTAX & DIVIDENDS/BONUS

(Rupees in million)

0

1 600 000

Profit (loss) Dividend

1 400 000

1 200 000

800 000

2013

600 000

1 000 000

400 000

200 000

1 800 000

2 000 000

2014 2015 2016 2017 2018



86

Earnings - News on earnings, profits and future positive cashflows develop interest of investors in the shares of thecompany.

Introduction of new Products - this could lead to positive earnings growth which in return affects share prices

Government Policies - Government's policies could be perceived as positive or negative for business.The policies maylead to changer in Inflation and interest rates, which may affect stock prices.

Industry specific performance - any changes in Govt policies toward Insurance industry my result in movement ofstock prices.

Investor sentiments / confidence - Positive economic reforms can attaract investord.

Announcement of Dividends - Expected distribution from earning could increase in share prices in expectations ofrealization of profits on investments.

Share Price Sensitivity Analysis

Analysis Of Variation In ResultsReported In Quarterly Accounts

400

300

200

100

0

1-Ja

n-18

1-Fe

b-18

1-M

ar-1

81-

Apr-1

81-

May

-18

1-Ju

n-18

1-Ju

l-18

1-Aug

-18

1-Se

p-18

1-Oct

-18

1-Nov

-18

1-Dec

-18

Closing Rate

Profit after tax

Cumulative profit

1 000 000

800 000

600 000

400 000

200 000

1 200 000

1 400 000

0Qtr 1

1 600 000

Qtr 2 Qtr 3 Qtr 4


Key Financial DataFor The Last Six Years

87

(Rupees ‘000)

2018 2017 2016 2015 2014 2013

Gross Premium / Contribution 30 790 407 31 420 835 24 676 452 31 033 830 18 219 910 14 058 930

REVENUE ACOUNT

Premium-net of reinsurance 30 164 268 30 813 133 23 861 851 30 351 972 17 595 939 13 365 479

Interest and other Income 3 266 274 9 438 197 8 128 626 8 117 383 6 796 578 4 748 784

33 430 542 40 251 330 31 990 477 38 469 355 24 392 517 18 114 263

Claims less reinsurance 13 094 451 14 237 934 17 764 439 8 941 518 4 714 369 3 483 942

Commission and Expense 8 374 022 6 887 965 5 535 953 5 415 109 4 727 382 4 274 210

Provision for (depreciation) / Appreciation

on investments ( 3 058 297 ) ( 13 094 284 ) 7 763 528 748 228 3 699 382 1 028 649

Write back / (Provision) for doubtful debts

on available for sale fixed income securities ( 6 559 ) 65 379 ( 160 407 )

Provision for Impairment for available for

sale Equity Investments 200 407 ( 22 201 ) 347 560 12 681

Capital contribution from Shareholders' fund 89 256

Changes in statutory Funds 6 577 382 3 236 906 13 945 180 22 606 826 17 639 714 9 838 720

Profit before tax 2 326 390 2 794 241 2 798 096 2 225 370 1 423 373 1 398 314

Provision for Taxation ( 745 057 ) ( 884 279 ) ( 925 200 ) ( 749 900 ) ( 472 472 ) ( 469 200 )

Profit after tax 1 581 333 1 909 962 1 872 896 1 475 470 950 901 929 114

BALANCE SHEET

Investments 105 820 637 85 388 521 88 831 183 71 941 323 55 534 580 39 585 719

Cash & Bank balances 4 786 362 18 496 913 12 395 589 14 406 587 7 666 369 7 614 047

Other Assets 3 698 947 4 143 723 2 920 367 3 249 775 2 943 929 1 094 258

Fixed Assets 2 458 665 2 208 842 2 154 392 1 667 694 1 083 604 810 235

116 764 611 110 237 999 106 301 531 91 265 379 67 228 482 49 104 259

Issued, Subscribed and paid-up capital 1 000 000 1 000 000 1 000 000 1 000 000 1 000 000 1 000 000

Accumulated surplus 2 877 596 1 440 648 1 543 383 1 459 743 1 083 773 1 032 872

General Reserve 2 150 000 1 900 000 1 650 000 950 000 750 500 500 500

Balance of Statutory Funds 107 603 537 101 233 038 97 782 063 83 836 320 61 222 367 43 582 653

Other liabilities 3 133 478 4 664 313 4 326 085 4 019 316 3 171 842 2 988 234

116 764 611 110 237 999 106 301 531 91 265 379 67 228 482 49 104 259


Key Operating and Financial Data


88

Six years summary 2018 2017 2016 2015 2014 2013Financial Ratios

Profitability Ratios

Profitability RatiosProfit Before Tax / Gross Premium % 7.6% 8.5% 11% 7% 8% 10%Profit Before Tax / Net Premium % 7.7% 8.7% 12% 7% 8% 10%Profit After Tax / Gross Premium % 5.1% 5.8% 8% 5% 5% 7%Profit After Tax / Net Premium % 5.2% 5.9% 8% 5% 5% 7%Gross Yield on Earning Assets % 6.3% 6.3% 6% 7% 8% 8%Net Claims / Net Premium % 43.4% 46.1% 74% 29% 27% 26%Commission / Net premium % 14.3% 11.7% 12% 10% 14% 17%Acquisition Cost / Net premium % 22.4% 17.7% 18% 14% 21% 25%Administration Expenses / Net premium % 5.4% 5.3% 5% 3% 5% 6%Change in PHL / Net Inflow % 21.7% 11.9% 35% 57% 61% 52%Net investment income / Net Premium % 0.7% -11.7% 66% 29% 59% 41%Return On Capital Employed % 17.7% 20.7% 23% 22% 16% 15%Return on Equity % 26.2% 41.8% 45% 43% 34% 37%

Liquidity Ratio

Current Ratio 7.51 4.85 3.54 4.39 3.35 2.91Quick Ratio 7.51 4.85 3.54 4.39 3.35 2.91Cash to Current Liability % 633% 397% 287% 358% 242% 255%

Investment / Market Ratio

Breakup Value Per Share Rupees 60.28 43.41 41.93 34.10 28.34 25.33Earnings per share (pre tax) Diluted Rupees 23.26 26.81 27.98 22.25 14.23 13.98Earnings per share (after tax) Diluted Rupees 15.81 18.12 18.73 14.75 9.51 9.29Price Earning Ratio -PAT Times 14.41 13.99 11.50 13.49 17.86 8.80Mkt price per share at end of the year Rupees 227.92 253.49 215.47 199 169.85 81.71Mkt price per share - Highest during the year Rupees 311.48 329.95 247.47 260 177.99 96.45Mkt price per share - Lowest during the year Rupees 195.66 209 162.3 140 80.60 68.01Cash Dividend per Share Rupees 15 15 15 10 7.50 6.5Price to book ratio 0.20 0.23 0.20 0.22 0.25 0.17Cash Dividend % % 150% 150% 150% 100% 75% 65%Dividend Yield % 7% 6% 7% 5% 4% 8%Dividend Payout % 94.86% 82.76% 80.09% 67.78% 78.87% 69.97%Dividend Cover Times 0.95 0.83 0.80 0.68 0.79 0.70Stock Dividend per share Times – – – – – –Bonus % % – – – – – –

Capital Structure Ratio

Return on Asset % 2.0% 2.4% 3% 2.4% 2% 3%Earning Asset to total asset % 91% 92% 95% 94% 93% 97%Total Liabilities / Equity Times 18.37 24.40 24.35 25.77 22.70 18.38Paid-up Capital / Total Asset % 0.86% 0.91% 0.94% 1.10% 1.49% 2.04%Equity/ total Asset % 5.2% 3.9% 4% 4% 4% 5%

Comments:Profitability Ratios:Net profit after tax have decreased from 1.909 billion to 1.581 billion the decrease in profitability ratios is due to one off transaction in 2017the Company has managed to underwrite Rs. 30.79 billions of business (new and subsequent) in 2018.Liquidity RatioEFU Life's liquidity position had always been very strong. Increase in liquidity ratios is mainly due to effective working capital managementInvestment / Market RatioEPS has gone down by roughly 13% to Rs. 15.81 per share as a result poor economic condition and ill performance of Pakistan StockExchange throughout the year relative increase in P/E ratio is due to decrease in share price as well as EPS dividend yield ratio has slightlyincreased due to decrease in the market value of share despite tough year The Company has announced 112.5% final dividend and 37.5%interim dividend (which sum up to 150% total dividend for 2018), reflecting robust and strong footprint in IndustryCapital Structure RatioEFU Life's paid up capital is 1 Billion which is the largest in the life insurance industry in Pakistan. Total assets of the company has increasedfrom 116.76 Billion to 109.54 Billion making an increase of almost 7%.In addition to this, company has maintained Rs. 2.26 billion in ledger account D, along with 3.28 billion in accumulated surplus and reserves.


Graphical Analysis

89

Balance Sheet

SHARE CAPITAL & RESERVES AND LIABILITIES

ASSETS

2017

Cash & bank balances

Investments Current assets

Fixed assets

6%3% 2%

89%

2018

Cash & bank balances

Investments Current assets

Fixed assets

4%3% 2%

91%

2018

3% 1% 4%

92%

Reserves

Share capitalPolicy holders’ liabilities

Creditors and accruals

2017

4% 1% 3%

92%

Reserves

Share capitalPolicy holders’ liabilities

Creditors and accruals



90

Profit & Loss / Revenue Account

GROSS PREMIUM

2018

8%

10%

22%

46%

Second year renewal individual policies

First year individual policies

Subsequent year renewal individual policies

Single premium individual policies

Group premium

14%

2017

26%

9%

17%

38%

Second year renewal individual policies

First year individual policies

Subsequent year renewal individual policies

Single premium individual policies

Group premium

10%

INVESTMENT INCOME

2017

42%

8%

50%

Dividend IncomeReturn on Govt. securities

Return on other fixed Income Securities

2018

20%

6%

74%

Dividend IncomeReturn on Govt. securities

Return on other fixed Income Securities


91

CASH GENERATED / UTILIZED

Cash Flow

Cash Consumed 2018

1% 7%

92%

Investing activitiesOperating activities

Financing activities

10%

90%

Cash Generated 2018



Cash Consumed 2017

1% 13%

86%



17%

83%

Cash Generated 2017




Vertical / Horizontal Analysis


92

Balance Sheet

Net Equity 6 027 596 5.16 5 962 671 5.44

Statutory Fund 105 685 537 90.51 99 108 155 90.47

Current Liabilities 5 051 478 4.33 4 474 358 4.08

Total Equity & Liabilities 116 764 611 100 109 545 184 100

Total non-current Assets 2 458 665 2.10 2 208 842 2.02

Investments 105 820 637 90.63 97 959 122 89.42

Current Assets 8 485 309 7.27 9 377 220 8.56

116 764 611 100 109 545 184 100

Revenue & Profit & Loss Account

Net Income 30 372 245 100.00 27 157 046 100

Claims, Expenditures and Policy- holders Liabilities ( 27 827 308 ) ( 91.62 ) ( 24 159 224 ) ( 88.96 )

Solvency Margin ( 218 547 ) ( 0.72 ) ( 203 576 ) ( 0.75 )

Profit before Tax 2 326 390 7.66 2 794 241 10.29

Income Tax expense ( 745 057 ) ( 2.45 ) ( 884 279 ) ( 3.26 )

Profit after Tax 1 581 333 5.21 1 909 962 7.03

Rupeesin ‘000

%

2018

Rupeesin ‘000

%

2017Vertical Analysis

Balance Sheet

Net Equity 6 027 596 5 962 671 4 193 383 3 409 743

Statutory Fund 105 685 537 99 108 155 97 782 063 83 836 320

Current Liabilities 5 051 478 4 474 358 4 326 085 4 019 316

Total Equity & Liabilities 116 764 611 109 545 148 106 301 531 91 265 379

Total non-current Assets 2 458 665 2 208 842 2 246 304 1 667 694

Investments 105 820 637 97 959 122 88 831 183 71 941 323

Current Assets 8 485 309 9 377 220 15 224 044 17 656 362

Total assets 116 764 611 109 545 184 106 301 531 91 265 379

Revenue & Profit & Loss Account

Net Income 30 372 245 27 157 046 39 952 080 39 188 823

Claims, Expenditures and Policy- holders Liabilities ( 27 827 308 ) ( 24 159 224 ) ( 36 892 682 ) ( 36 618 738 )

Solvency Margin ( 218 547 ) ( 203 576 ) ( 261 302 ) ( 344 715 )

Profit before Tax 2 326 390 2 794 241 2 798 096 2 225 370

Income Tax expense ( 745 057 ) ( 884 279 ) ( 925 200 ) ( 749 900 )

Profit after Tax 1 581 333 1 909 962 1 872 896 1 475 470

Rupeesin ‘000

2018

Rupeesin ‘000

2017

Rupeesin ‘000

2016

Rupeesin ‘000

2015Horizontal Analysis


93

4 193 383 3.94 3 409 743 3.74 2 834 273 4.22 2 533 372 5.16

97 782 063 91.99 83 836 320 91.86 61 222 367 91.07 43 582 653 88.76

4 326 085 4.07 4 019 316 4.40 3 171 842 4.71 2 988 234 6.08

106 301 531 100 91 265 379 100 67 228 482 100 49 104 259 100

2 246 304 2.11 1 667 694 1.83 1 083 604 1.61 810 235 1.65

88 831 183 83.57 71 941 323 78.83 55 534 580 82.61 39 585 719 80.62

15 224 044 14.32 17 656 362 19.35 10 610 298 15.78 8 708 305 17.73

106 301 531 100 91 265 379 100 67 228 482 100 49 104 259 100

39 952 080 100 39 188 823 100 28 504 838 100 18 995 186 100

( 36 892 682 ) ( 92.34 ) ( 36 618 738 ) ( 93.44 ) ( 26 522 989 ) ( 93.05 ) ( 17 590 800 ) ( 92.61 )

( 261 302 ) ( 0.65 ) ( 344 715 ) ( 0.88 ) ( 558 476 ) ( 1.96 ) ( 6 072 ) ( 0.03 )

2 798 096 7.00 2 225 370 5.68 1 423 373 4.99 1 398 314 7.36

( 925 200 ) ( 2.32 ) ( 749 900 ) ( 1.91 ) ( 472 472 ) ( 1.66 ) ( 469 200 ) ( 2.47 )

1 872 896 4.69 1 475 470 3.77 950 901 3.34 929 114 4.89

Rupeesin ‘000

%

2016

Rupeesin ‘000

%

2015

Rupeesin ‘000

%

2014

Rupeesin ‘000

%

2013

2 834 273 2 533 372 1.09 42.19 22.98 20.30 11.88 20.97

61 222 367 43 582 653 6.64 1.36 16.63 36.94 40.47 29.16

3 171 842 2 988 234 12.90 3.43 7.63 26.72 6.14 45.33

67 228 482 49 104 259 6.59 3.05 16.48 35.75 36.91 29.58

1 083 604 810 235 11.31 2.55 34.70 53.90 33.74 33.46

55 534 580 39 585 719 8.03 ( 3.88 ) 23.48 29.54 40.29 13.99

10 610 298 8 708 305 ( 9.51 ) 48.09 ( 13.78 ) 66.41 21.84 240.32

67 228 482 49 104 259 6.59 3.70 16.48 35.75 36.91 29.58

28 504 838 18 995 186 11.84 ( 31.63 ) 1.95 37.48 50.06 13.16

( 26 522 989 ) ( 17 590 800 ) 15.18 ( 33.78 ) 0.75 38.06 50.78 16.09

( 558 476 ) ( 6 072 ) 7.35 ( 22.09 ) ( 24.20 ) ( 38.28 ) 9 097.56 ( 97.48 )

1 423 373 1 398 314 ( 16.74 ) ( 4.19 ) 25.74 56.34 1.79 0.42

( 472 472 ) ( 469 200 ) ( 15.74 ) ( 6.14 ) 23.38 58.72 0.70 ( 1.91 )

950 901 929 114 ( 17.21 ) ( 3.23 ) 26.94 55.17 2.34 1.64

Rupeesin ‘000

2014

Rupeesin ‘000

2013 2018 2017 2016 2015 2014 2013

% increase / (decrease) over preceding year


Revenue Application


94

( Rupees in '000 )

2018 2017

RevenuePremium 30 164 268 30 759 730Investment 449 766 ( 3 469 342 )Other 54 127 23 704

30 668 161 27 314 092

CostAcquisition Cost 6 750 979 5 440 252Employee Benefits 634 886 567 887Other 1 145 482 865 089

8 531 347 6 873 228

Policy HoldersClaims and surrenders 13 085 715 14 195 613Policy Holders Movements 6 577 382 3 236 906

19 663 097 17 432 519

GovernmentIncome & other Taxes 805 100 868 400Policy Holders Movements – –

805 100 868 400

ShareholdersDividend 1 500 000 1 575 000

1 500 000 1 575 000

SocietyDonations 6 865 7 800

6 865 7 800

Retained in BusinessReserve unappropriated profit 81 333 237 381Capital Contribution ( 12 809 ) ( 90 116 )Depreciation / Amortization 140 461 206 303Statutory Reserves - Solvency Margin (47 233 ) 203 577

161 752 557 145

Revenue 30 668 161 27 314 092

2%

2017

Society

Government

Policy Holders

Shareholders

Retained in Business

Cost

64%

25%

6%0%

3%

0%

2018

Society

Government

Policy Holders

Shareholders

Retained in Business

Cost

64%

28%

5%0%3%


Statement of Compliancewith the Shariah Principles

95

The financial arrangements, contracts and transactions, entered into by EFU Life Assurance Limited-Window TakafulOperations ('the Company') for the period from 1 January 2018 to 31 December 2018 are in compliance with the takafulrules, 2012.

Further we confirmed that:

– The Company has developed and implemented all the policies and procedures in accordance with takaful rules, 2012and rulings of the Shariah Advisor along with a comprehensive mechanism to ensure compliance with such rulingand takaful rules,2012 in their overall operations with zero tolerance. Further, the governance arrangements includingthe reporting of events and status to those charged with relevant responsibilities, such as the audit Committee /Shariah Advisor and the Board of Directors have been implemented;

– The Company has imparted training / orientations and ensured availability of all manuals / arrangements approvedby Shariah advisor / Board of Directors to maintain the adequate level of awareness, capacity and sensitization ofthe staff, management;

– All the products and polices have been approved by the shariah Advisor and the financial arrangements includinginvestments made, policies, contracts and transactions, entered into by Window takaful Operations are in accordancewith the policies approved by Shariah Advisor.

– The assets and liabilities of window takaful Operations (Participants takaful fund and Operator's Sub fund) aresegregated from its other assets and liabilities, at all times in accordance with the provisions of the takaful rules,2012.

This has been duly confirmed by the Shariah Advisor of the Company.

Dated: March 22, 2019 Managing Director(Chief Executive Officer)


Shariah Advisory Reportto the Board of Directors


96

EFU Life Assurance Ltd started its Window Takaful Operations on 6th February 2015. By the grace of Allah, the yearunder review was the fourth successful year of Family Takaful in EFU Life. In this year, the Management, DistributionChannels and Board of Directors demonstrated their sincere efforts for the promotion of Takaful and underwrittengood numbers in Takaful.

Progress of the Year 2018:

During the year under review; EFU Life Window Takaful Operations (EFU Life-WTO) has achieved significant successes,details of which are as follow:

1. Under the guidance of the undersigned EFU Life-WTO developed different Takaful Products especially in theIndividual and BancaTakaful segments focusing on the need of Savings, protection and investment based plans.

2. All the distribution channels of EFU Life-WTO including BancaTakaful, Individual and Group Family Takafulsegments performed very well and underwritten good figures in Takaful.

3. Number of Religious Institutions (Madaris) continued their fatawa in favor of Takaful Products of EFU Life-WTO.Their Fatawa can be viewed on the website and Takaful booklet of the Company.

4. EFU Life-WTO invested a lot on individual Takaful sales force and appointed new dedicated team to promoteits Takaful range country wide. In short period of time, this new team performed well and written good numbersin Individual Takaful segment.

Shariah Certification:

As Shari’ah Advisor of EFU Life-WTO; I confirm that:

• I have carefully reviewed all the product documents of EFU Life-WTO including Takaful Policies, Brochures,Marketing materials, Agreements of BancaTakaful and Group Takaful etc. and Alhamdulilalh I have found themin accordance with Shariah Principles.

• Before launching of any Takaful Product, EFU Life-WTO took guidance and advice of Shari’ah from the undersignedand developed the Takaful Products in accordance with the guidelines provided by me as Shariah Advisor.

• Segregation of Window Takaful Operations is the essential part of valid Takaful contracts. I am pleased to statethat EFU Life has realized criticalities of this issue and from the day one, Alhamdulillah, all the Takaful Funds,Investments, Bank Accounts, Systems and other related issues are kept separate from its conventional insurancebusiness, as per requirement of Shariah.

Annual Shari’ah Review ReportFor the year ended December 31, 2018

MUFTI MUHAMMAD IBRAHIM ESSAGraduate from Jamiah Darul Uloom Karachi, PakistanShariah Advisor - Islamic Finance and Takaful /RetakafulEmail: [email protected]: (92) (21) 02135049775, +92.322.2671867


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• Conducting Training and Development is an imperative for understanding the principles of Takaful and itspractical outline. For this purpose EFU Life-WTO arranged classroom training sessions for its Distribution Channelsworking in their respective fields and I personally felt that participants gained significantly from these trainingsessions. I hope EFU Life-WTO will continue this practice in the future.

• All investments under Takaful Growth Fund and Takaful Aggressive Fund fulfill the requirements of Shari’ah.Moreover, the investments of all other Takaful Funds are separate from the conventional insurance business andthey are in line with Shariah.

• Few cases which were required to be consulted from the Shariah perspective were discussed with the managementand duly resolved.

In the end; I pray to Allah Almighty to grant us success and help us at every step, keep us away from every hindranceand difficulty, and give financial success to EFU Life Window Takaful Operations.

Profile of Shariah AdvisorThe Shari'ah Advisor of EFU Family Takaful is Mufti Muhammad Ibrahim Essa, a prominent scholar from Jamiah DarulUloom Karachi specializing in Islamic Finance and Takaful. Mufti Ibrahim has completed his Darse Nizami (Mastersin Quran and Sunnah) and Takhassus Fil Fiqh (Specialization in Islamic Jurisprudence) from Jamiah Darul UloomKarachi under the close supervision of Mufti Muhammad Taqi Usmani.

Mufti Ibrahim is also a teacher and member of Darul Ifta, Darul Uloom Karachi (September 2006 to date). He isalso associated as Shariah Advisor with different Islamic Financial Institutions, an Islamic Bank, Mudarabas and anauditing Firm.

Muhammad Ibrahim EssaShariah AdvisorEFU Life Assurance Limited-Window Takaful Operations20th March, 2019


Independent Reasonable Assurance Report


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We were engaged by the Board of Directors of EFU Life Assurance Limited (“the Company”) to report on themanagement's assessment of compliance of the Window Takaful Operations (“Takaful Operations”) of the Company,as set out in the annexed statement prepared by the management for the year ended 31 December 2018, with theTakaful Rules, 2012, in the form of an independent reasonable assurance conclusion about whether the annexedstatement presents fairly the status of compliance of the Operations with the Takaful Rules, 2012, in all materialrespects.

Applicable Criteria

The criteria against which the subject matter information (the Statement) is assessed comprise of the provisions ofTakaful Rules 2012.

Responsibilities of the Management

The Board of Directors / management of the Company are responsible for designing, implementing and maintaininginternal controls relevant to the preparation of the annexed statement that is free from material misstatement,whether due to fraud or error. It also includes ensuring the overall compliance of the Takaful Operations with theTakaful Rules, 2012.

The Board of Directors / management of the Company are also responsible for preventing and detecting fraud andfor identifying and ensuring that the Takaful Operations comply with laws and regulations applicable to its activities.They are also responsible for ensuring that the management, where appropriate, those charged with governance,and personnel involved with the Takaful Operations compliance with the Takaful Rules, 2012 are properly trained,systems are properly updated and that any changes in reporting encompass all significant business units.

Our Independence and Quality Control

We have complied with the independence and other ethical requirements of the Code of Ethics for CharteredAccountants issued by the Institute of Chartered Accountants of Pakistan, which is founded on fundamental principlesof integrity, objectivity, professional competence and due care, confidentiality and professional behavior.

The firm applies International Standard on Quality Control 1 “Quality Control for Firms That Perform Audits andReviews of Historical Financial Information, and Other Assurance and Related Services Engagements” and accordinglymaintains a comprehensive system of quality control including documented policies and procedures regardingcompliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Our Responsibilities

Our responsibility is to examine the annexed statement and to report thereon in the form of an independent reasonableassurance conclusion based on the evidence obtained. We conducted our engagement in accordance with InternationalStandard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other Than Audits or Reviews of HistoricalFinancial Information issued by the International Auditing and Assurance Standards Board. That standard requiresthat we plan and perform our procedures to obtain reasonable assurance about whether the annexed statementpresents fairly the status of compliance of the Takaful Operations with the Takaful Rules, 2012, in all material respects.

The procedures selected depend on our judgment, including the assessment of the risks of material non-complianceswith the Takaful Rules, 2012, whether due to fraud or error. In making those risk assessments, we have consideredinternal control relevant to the Takaful Operations compliance with the Takaful Rules, 2012, in order to designassurance procedures that are appropriate in the circumstances, but not for the purposes of expressing a conclusionas to the effectiveness of the Company's internal control over the Takaful Operations' compliance with the TakafulRules, 2012. Reasonable assurance is less than absolute assurance.

to the Board of Directors on the Statement of Management'sAssessment of Compliance with the Shariah Principles


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A system of internal control, because of its nature, may not prevent or detect all instances of non-compliance withTakaful Rules, 2012, and consequently cannot provide absolute assurance that the objective of compliance withTakaful Rules, 2012, will be met. Also, projection of any evaluation of effectiveness to future periods is subject tothe risk that the controls may become inadequate or fail.

The procedures performed included:

– Evaluate the systems, procedures and practices in place with respect to the Takaful operations against theTakaful Rules, 2012 and Shariah advisor's guidelines;

– Evaluating the governance arrangements including the reporting of events and status to those charged withrelevant responsibilities, such as the Audit Committee/ Shari'ah Advisor and the Board of Directors;

– Test for a sample of transactions relating to Takaful operations to ensure that these are carried out in accordancewith the laid down procedures and practices including the regulations relating to Takaful operations as laiddown in Takaful Rules, 2012;and

– Review the statement of management's assessment of compliance of the Takaful transactions during the yearended 31 December 2018, with the Takaful Rules, 2012.

Conclusion

Our conclusion has been formed on the basis of, and is subject to, the matters outlined in this report. We believethat the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.

In our opinion, the annexed statement, for the year ended 31 December 2018, presents fairly the status of complianceof the Takaful Operations with the Takaful Rules, 2012, in all material respects.

Date: 22 March 2019 KPMG Taseer Hadi & Co.Karachi Chartered Accountants



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This statement is being presented in compliance with the Code of Corporate Governance for Insurers, 2016 (theCode) for the purpose of establishing a framework of good governance, whereby an insurer is managed in compliancewith the best practices of corporate governance and the Listed Companies (Code of Corporate Governance)Regulations, 2017.

The Company, being an insurer, has applied the principles contained in the said Codes in the following manner:

1. The Company encourages representation of independent and non-executive Directors and directors representingminority interests on its Board of Directors. At present the Board includes:

Category Name

Independent Director Mr. Kamal AfsarExecutive Director Mr. Taher G. SachakNon-Executive Directors Mr. Rafique R. BhimjeeNon-Executive Directors Mr. Saifuddin N. ZoomkawalaNon-Executive Directors Mr. Muneer R. BhimjeeNon-Executive Directors Mr. Hasanali AbdullahNon-Executive Directors Mr. Heinz Walter DollbergNon-Executive Directors Mr. S. Salman RashidNon-Executive Directors Mr. Ali Raza Siddiqui

The independent director meets the criteria of independence under the Code and the Listed Companies (CCG)Regulations, 2017.

2. The directors have confirmed that none of them is serving as a director on more than five (5) listed companies,including this company.

3. All the resident directors of the company have confirmed that they are registered as taxpayers and none of themhas defaulted in payment of any loan to a banking company, a DFI or an NBFI. None of the directors or theirspouses is engaged in business of stock brokerage.

4. There was no casual vacancy occurred on the Board during the year.

5. The Company has prepared a "Code of Conduct" and has ensured that appropriate steps have been taken todisseminate it- throughout the company along with its supporting policies and procedures.

6. The Board has developed a vision / mission statement, overall corporate strategy and significant policies of theCompany. A complete record of particulars of significant policies along with the dates on which they werepresented on the Board for approval or amendment has been maintained.

7. All powers of the Board have been duly exercised and decisions on material transactions including appointmentand determination of remuneration and terms and conditions of employment of Chief Executive Officer, otherexecutive and nonexecutive directors and the key officers, have been taken by the Board except the decisionon terms of and the circumstances in which a law suit may be compromised and claim / right in favor of thecompany may be waived, released, extinguished or relinquished, which shall be made within timeline providedin Code.

8. The meetings of the Board were presided over by the Chairman and the Board met at least once in every quarter.Written notices of the Board meetings, along with agenda and working papers, were circulated at least sevendays before the meetings. The minutes of the meetings were appropriately recorded and circulated.

9. The Board has established a system of sound internal control, which is effectively implemented at all levels withinthe Company. The Company has adopted and complied with all the necessary aspects of internal controls givenin the Code.

10. The Board arranged an Orientation course for all its directors in the form of booklet which Was submitted tothe Board of Director during the year to' apprise them of their duties and responsibilities and also about changesin Code of Corporate Governance.

Statement of Compliance with the Code of Corporate Governance for Insurers,2016 & Listed Companies (Code of Corporate Governance) Regulations, 2017,For the year ended 31 December 2018


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11. The Board has put in place a mechanism for an annual evaluation of the Board's own performance as requiredunder the Listed Companies (CCG) Regulations, 2017.

12. There was no change of Chief Financial Officer, Company Secretary and Head of Internal Audit during the year2018. The Board had approved the remuneration of CFO & Company Secretary and the Head of Internal AuditDepartment. The Board have now appointed Mr. Abbas Hussain as Company Secretary of the Company.

13. The Directors' Report for this year has been prepared in compliance with the requirements of the Code and theListed Companies (CCG) Regulations, 2017 and fully describes the salient matters required to be disclosed.

14. The financial statements of the Company were duly endorsed by Chief Executive Officer and Chief FinancialOfficer before approval of the Board.

15. The Directors, Chief Executive Officer and other executives do not hold any interest in the shares of the Companyother than that disclosed in the pattern of shareholding.

16. The Company has complied with all the corporate and financial reporting requirements of the Code and ListedCompanies (CCG) Regulations, 2017.

17. The Board has formed the following Management Committees under the Code:

Underwriting Committee:

Name of the Member Category

Taher G. Sachak Chairman (Chief Executive Officer)Dr Tajuddin A, Manji MemberZain Ibrahim MemberHasan Sheikh MemberDr Asadul Hadi Siddiqui Member

Claim Settlement Committee:


Taher G. Sachak Chairman (Chief Executive Officer)Arshad Iqbal MemberDr Ammara Moazzum MemberSajjad Hussain Member

Reinsurance Committee:


Taher G. Sachak Chairman (Chief Executive Officer)Mohammad Ali Ahmed MemberZain Ibrahim MemberRaza Hasan MemberAli Qureshi Member

Risk Management & Compliance Committee:


Taher G. Sachak Chairman (Chief Executive Officer)Mohammed Ali Ahmed MemberS. Shahid Abbas MemberZain Ibrahim MemberAli Qureshi MemberAbbas Hussain MemberS. Abdul Mujeeb Member



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18. The Board has formed the following Board Committees under the Code / Listed Companies (CCG) Regulations,2017:

Ethics, Human Resource & Remuneration Committee:


Kamal Afsar Chairman (Independent Director)Rafique R. Bhimjee Member (Non-Executive Director)Saifuddin N. Zoomkawala Member (Non-Executive Director)Taher G. Sachak Member (Chief Executive Officer)

Investment Committee:


Rafique R. Bhimjee Chairman (Non-Executive Director)Saifuddin N. Zookawala Member (Non-Executive Director)Taher G. Sachak Member (Chief Executive Officer)Hasanali Abdullah Member (Non-Executive Director)Omer Morshed Member - Appointed ActuaryS. Shahid Abbas Member - Chief Financial OfficerMohammed Ali Ahmed Member - ActuaryS. Muhammad Owais Member - Chief Investment Officer

19. The Board has formed an Audit Committee. It comprises of four members, of whom one is independent directorand three are non-executive Directors. The chairman of the committee is a non-executive director. The compositionof the Audit Committee is as follows:

Audit Committee:


Kamal Afsar Chairman (Independent Director)Hasanali Abdullah Member (Non-Executive Director)Saifuddin N. Zoomkawala Member (Non-Executive Director)Muneer R. Bhimjee Member (Non-Executive Director)Ali Raza Siddiqui Member (Non-Executive Director)

20. The terms of reference of the aforesaid committees have been formed, documented and advised to the committeefor compliance.

21. The meetings of the Committees, except Ethics, Human Resource and Remuneration Committee, were held atleast once every quarter prior to approval of interim and final results of the insurer and as required by the Code/ Listed Companies (CCG) Regulations, 2017. Ethics, Human Resource and Remuneration Committee was heldonce a year

22. The Board has set up an effective internal audit function who are considered suitably qualified and experiencedfor the purpose and are conversant with the policies and procedures of the company.

23. The Chief Executive Officer, Chief Financial Officer, Compliance Officer and the Head of Internal Audit possesssuch qualification and experience as is required under the Code. The Appointed Actuary of the Company alsomeets the conditions as laid down in the said Code. Moreover, the persons heading the underwriting, claim,reinsurance, risk management and grievance functions / departments possess qualification and experience of


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direct relevance to their respective functions, as required under section 12 of the Insurance Ordinance, 2000(Ordinance No. XXXIX of 2000):

Name of the Person Designation

Taher G. Sachak Chief Executive OfficerS. Shahid Abbas Chief Financial OfficerAbbas Hussain Compliance OfficerAbbas Hussain Company SecretaryMohammed Ali Ahmed ActuaryMohammad Abbas Head of Internal AuditZain Ibrahim Head of UnderwritingDr Ammara Moazzum Head of ClaimsAli Qureshi Head of ReinsuranceAli Qureshi Head of Risk ManagementArshad Iqbal Head of Grievance Dept.

24. The statutory auditors of the Company have been appointed from the panel of auditors approved by theCommission in terms of section 48 of the Insurance Ordinance, 2000 (Ordinance No. XXXIX of 2000). Thestatutory auditors of the Company have confirmed that they have been given a satisfactory rating under thequality control review programme of the Institute of Chartered Accountants of Pakistan, that they or any of thepartners of the firm, their spouses and minor children do not hold shares of the insurer and that the firm andall its partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethicsas adopted by Institute of Chartered Accountants of Pakistan.

25. The statutory auditors or the persons associated with them have not been appointed to provide other servicesexcept in accordance with the listing regulations and the auditors have confirmed that they have observed IFACguidelines in this regard.

26. The Appointed Actuary of the Company has confirmed that he/she or his/her spouse and minor children do nothold shares of the Company.

27. The Board ensures that the Appointed Actuary complies with the requirement set out for him/her in the Code.

28. The Board ensures that the investment policy of the Company has been drawn up in accordance with theprovisions of the Code.

29. The Board ensures that the risk management system of the Company is in place as per the requirement of theCode.

30. The Company already has risk management function, which carries out the tasks as covered under the code.

31. The Board ensures that as part of the risk management system, the Company gets rated from JCR-VIS which isbeing used by its risk management function/department and the respective Committee as a risk monitoring tool.The rating assigned by the said rating agency on 28 November 2017 is AA+ with Stable outlook. Which carriesout its tasks as covered under the Code.

32. The Board has set up a grievance department/function, which fully complies with the requirements of the Code.

33. The Company has not obtained any exemption from the Securities and Exchange Commission of Pakistan inrespect of the requirements of the Code.

34. All directors are either already certified or exempt from the said requirement under Code of Corporate Governancecontained in Listing Regulations.



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Karachi March 22, 2019


Chief Executive

35. The 'closed period', prior to the announcement of interim / final results, and business decisions, which maymaterially affect the market price of company's securities, was determined and intimated to directors, employeesand the Pakistan stock exchange as required by the Listed Companies (CCG) Regulations, 2017.

36. Material/price sensitive information has been disseminated among all market participants at once through thePakistan stock exchange' as required by Listed Companies (CCG) Regulations, 2017.

37. The Company has complied with the requirements relating to maintenance of register of persons having accessto inside information by designated senior management officer in a timely manner and maintained proper recordincluding basis for inclusion or exclusion of names of persons from the said list.

38. The Company is in the process of complying with the requirements and regulations laid down in Section 208of the Companies Act, 2017. The compliance is dependent on clarification from the Securities and ExchangeCommission of Pakistan (SECP) with respect to definition of related parties. In the meantime, the Company hascontinued to present the details of all related party transactions as disclosed in the financial statements beforethe Audit Committee and upon their recommendation to the Board for review and approval.

39. We confirm that all other material principles contained in the Code and the Listed Companies (CCG) Regulations,2017 have been complied with.

By Order of the Board


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We have reviewed the enclosed Statement of Compliance with the Code of Corporate Governance for Insurers, 2016and the Listed Companies (Code of Corporate Governance) Regulations, 2017 (the Regulations) prepared by theBoard of Directors of EFU Life Assurance Limited for the year ended 31 December 2018 in accordance with therequirements of regulation 40 of the Regulations.

The responsibility for compliance with the Regulations is that of the Board of Directors of the Company. Ourresponsibility is to review whether the Statement of Compliance reflects the status of the Company's compliancewith the provisions of the Regulations and report if it does not and to highlight any non-compliance with therequirements of the Regulations. A review is limited primarily to inquiries of the Company's personnel and reviewof various documents prepared by the Company to comply with the Regulations.

As a part of our audit of the financial statements we are required to obtain an understanding of the accounting andinternal control systems sufficient to plan the audit and develop an effective audit approach. We are not requiredto consider whether the Board of Directors' statement on internal control covers all risks and controls or to form anopinion on the effectiveness of such internal controls, the Company's corporate governance procedures and risks.

The Regulations require the Company to place before the Audit Committee, and upon recommendation of the AuditCommittee, place before the Board of Directors for their review and approval, its related party transactions and alsoensure compliance with the requirements of section 208 of the Companies Act, 2017. We are only required and haveensured compliance of this requirement to the extent of the approval of the related party transactions by the Boardof Directors upon recommendation of the Audit Committee. We have not carried out procedures to assess anddetermine the Company's process for identification of related parties and that whether the related party transactionswere undertaken at arm's length price or not.

Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliancedoes not appropriately reflect the Company's compliance, in all material respects, with the requirements containedin the Regulations as applicable to the Company for the year ended 31 December 2018.

KPMG Taseer Hadi & Co.Chartered Accountants


Review Report on the Statement of Compliance contained inListed Companies (Code of Corporate Governance) Regulations,2017 and the Code of Corporate Governance for Insurers, 2016



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Independent Auditor's Report

To the members of EFU Life Assurance Limited

Report on the Audit of the Financial Statements

Qualified Opinion

We have audited the annexed financial statements of EFU Life Assurance Limited (the “Company”), which comprisethe statement of financial position as at 31 December 2018, the profit and loss account, the statement of comprehensiveincome, the statement of changes in equity and the statement of cash flows for the year then ended, and notes tothe financial statements, including a summary of significant accounting policies and other explanatory information,and we state that we have obtained all the information and explanations which, to the best of our knowledge andbelief, were necessary for the purposes of the audit.

In our opinion and to the best of our information and according to the explanations given to us, except for the effectsof the matter described in the Basis for Qualified Opinion section of our report, the statement of financial position,the profit and loss account, the statement of comprehensive income, the statement of changes in equity and thestatement of cash flows together with the notes forming part thereof, conform with the accounting and reportingstandards as applicable in Pakistan and give the information required by the Insurance Ordinance, 2000 and theCompanies Act, 2017 (XIX of 2017), in the manner so required and respectively give a true and fair view of the stateof Company's affairs as at 31 December 2018 and of the profit, total comprehensive income, the changes in equityand its cash flows for the year then ended.

Basis for Qualified Opinion

As more fully explained in note 24.1 to the financial statements, the Sindh Revenue Board abolished sales tax exemptionon life insurance premium from 01 July 2018. Further, the Punjab and Balochistan Revenue Authorities have alsointroduced sales tax on life insurance premium effective from 01 November 2018 and 01 July 2015. The Companyhas not charged the sales tax on life insurances premium to its customers since the matter of renewal of exemptionis under discussion with the sales tax authorities. IAS 37 'Provisions, Contingent Liabilities and Contingent Assets'requires provision should be recognised when the entity has a present legal obligation as a result of past event.Accordingly, had the above liability been recorded, profit for the year and equity of the Company would have reducedby Rs. 1,315.33 million and the sales tax liability would have been increased by the same amount.

We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan. Ourresponsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company in accordance with the InternationalEthics Standards Board for Accountants' Code of Ethics for Professional Accountants as adopted by the Institute ofChartered Accountants of Pakistan (the Code) and we have fulfilled our other ethical responsibilities in accordancewith the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our qualified opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of thefinancial statements for the current period. These matters were addressed in the context of our audit of the financialstatements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on thesematters. In addition to the matter described in the Basis for Qualified Opinion section we have determined the mattersdescribed below to be the key audit matters to be communicated in our report.


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S.No. Key audit matters How the matters were addressed in our audit

Refer notes 3.1.4 and 20 to the financialstatements relating to insurance liabilities.

The Company's insurance liabilities represent97% of its total liabilities. Approximately 96%of these liabilities are for unit linked business.Valuation of insurance / takaful contract liabilitiesinvolve significant judgment, actuarialassumptions such as; mortality, persistency,morbidity, investment returns, expense levelsand inflation, and the use of methods adoptedfor actuarial valuations.

Insurance Liabilities1 Our procedures in respect of this matter included thefollowing:

• Obtained an understanding, assessed the design andtested the operating effectiveness of controlsestablished for unit linked business for allocation andsurrender of units and calculation of bid value perunit;

• Assessed the adequacy of the reserve for bid value ofallocated units of unit linked business, by applying thebid value to the total number of units extracted fromthe system;

• Assessed the adequacy of reserving of variouscomponents of Insurance liabilities, other than bidvalue reserves including reserves of non-linkedbusinesses, by testing calculations on the relevant dataobtained from system generated reports;

• Obtained an understanding, evaluated the design andtested the controls related to reinsurance arrangements;

• Obtained understanding of the work performed bythe appointed actuary;

• Used an external actuarial specialist to assist us inchallenging the general principles, actuarialassumptions and methods adopted for actuarialvaluations by the appointed actuary of the Company;and

• Challenged the assumptions used for incurred but notreported claims of businesses where fully credibleexperience is not available with the Company'shistorical data of claims.

Our procedures in respect of this matter included thefollowing:

• Obtained an understanding, evaluated the design andtested the controls over the process of capturing,processing and recording of information related tothe claims;

• For a risk based sample of claims outstanding at theyear-end, other than for unit linked business, comparedthe liability recorded with the terms of the policy; and

• For a risk based sample of claims reported near to yearend and subsequent to year end, evaluated that theseare recorded in the appropriate period.

Refer notes 3.1.21 and 30 to the financialstatements relating to insurance benefits.

The total claims expense net of reinsurances andrelated expenses for the year in respect of death,non-death, maturity, surrenders and partialsurrender claims amounted to Rs. 13.094 billion.

Claim expenses are recognized on intimation ofthe insured event except for individual lifebusinesses where the same are recognized atthe earlier of the maturity of contract andintimation of insured event.

The recognition of insurance benefits involvesjudgment and a risk that claims may not berecognized in the appropriate period.

Insurance Benefits2

Following are the key audit matters:



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S.No. Key audit matters How the matters were addressed in our audit

Refer notes 3.1.9, 3.2.4, 3.2.7 and 25 to thefinancial statements relating to revenuerecognition.

The Company receives its revenue primarily fromtwo main sources namely; premiums /contributions and investments income.

We identified revenue recognition as a key auditmatter as it is one of the key performanceindicators of the Company and because of thepotential risk that revenue transactions may notbe recognized in the appropriate period.

Revenue Recognition3 Our procedures in respect of this matter included thefollowing:

• Obtained an understanding, evaluated the design andtested the controls over the process of capturing,processing and recording of information related topremiums and investment income;

• For a risk based sample of policies of non-unit linkedbusiness where premium is outstanding at the yearend, compared receivable recorded with the terms ofpolicy;

• For a risk based sample of policies of which premium/contribution was received / due near to period endand subsequent to period end, evaluated that thesewere recorded in the appropriate period; and

• For a sample of investment income transactions, testedthat investment income is recorded based on theeffective interest method or where right to receivethe dividend is established.

Refer notes 3.1.12 and 5 to the financial statementsrelating to changes in accounting policy due tointroduction of Insurance Rules, 2017 andInsurance Accounting Regulations, 2017.

Insurance Rules, 2017 and Insurance AccountingRegulations, 2017 became effective for the yearended 31 December 2018. These regulationscontained a new format of financial statementsand changed the presentation basis. The changesalso required changes in basis of valuation ofvarious investments.

Because of the significance of the change, thiswas identified as key audit matter.

Changes in accounting policy due tointroduction of Insurance Rules, 2017 andInsurance Accounting Regulations, 2017

4 Our procedures in respect of this matter included thefollowing:

• Evaluated the adequacy and completeness of thedisclosures relating to changes in accounting policiesand adjustments required in accordance withaccounting and reporting standards as applicable inPakistan; and

• Evaluated the adequacy and completeness of additionaldisclosures as required under new accountingregulations.

Information Other than the Financial Statements and Auditor's Report Thereon

Management is responsible for the Other Information. The Other Information comprises the information included inthe Annual Report but does not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the Other Information and we do not express any form ofassurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the Other Information and, indoing so, consider whether the Other Information is materially inconsistent with the financial statements or ourknowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we haveperformed, we conclude that there is a material misstatement of this Other Information, we are required to report


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that fact. We have concluded that the Other Information is materially misstated for the same reason with respect tothe amounts or other items in the Company's Annual Report affected by the matter described in the Basis for QualifiedOpinion section of our report.

Responsibilities of Management and Board of Directors for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance withthe accounting and reporting standards as applicable in Pakistan and the requirements of Insurance Ordinance, 2000and, Companies Act, 2017 (XIX of 2017), and for such internal control as management determines is necessary toenable the preparation of financial statements that are free from material misstatement, whether due to fraud orerror.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue asa going concern, disclosing, as applicable, matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to cease operations, or has no realisticalternative but to do so.

Board of directors are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance withISAs as applicable in Pakistan will always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these financial statements.

As part of an audit, in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of theCompany's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based onthe audit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertaintyexists, we are required to draw attention in our auditor's report to the related disclosures in the financial statementsor, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However, future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, andwhether the financial statements represent the underlying transactions and events in a manner that achieves fairpresentation.



110

We communicate with the board of directors regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant deficiencies in internal control that we identify duringour audit.

We also provide the board of directors with a statement that we have complied with relevant ethical requirementsregarding independence, and to communicate with them all relationships and other matters that may reasonably bethought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the board of directors, we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when,in extremely rare circumstances, we determine that a matter should not be communicated in our report because theadverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on other legal and regulatory requirements

Based on our audit, we further report that in our opinion:

a) proper books of account have been kept by the Company as required by the Insurance Ordinance, 2000 and theCompanies Act, 2017 (XIX of 2017);

b) the statement of financial position, the profit and loss account, the statement of comprehensive income, thestatement of changes in equity and the statement of cash flows together with the notes thereon have been drawnup in conformity with the Insurance Ordinance, 2000, the Companies Act, 2017 (XXI of 2017), and are in agreementwith the books of account;

c) the apportionment of assets, liabilities, revenue and expenses between two or more funds has been performedin accordance with the advice of the appointed actuary;

d) investments made, expenditure incurred and guarantees extended during the year were for the purpose of theCompany's business; and

e) zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by theCompany and deposited in the Central Zakat Fund established under section 7 of that Ordinance.

The engagement partner on the audit resulting in this independent auditor's report is Muhammad Taufiq.

KPMG Taseer Hadi & Co.Chartered Accountants

Date: March 22, 2019

Karachi


(Rupees ‘000)

Assets

Property and equipment 6 2 431 627 2 197 214 2 132 747Intangible assets 7 27 038 11 628 21 645Investments

Equity securities 8 33 542 712 27 836 364 39 093 084Government securities 9 52 972 866 56 454 577 48 870 068Debt securities 10 4 078 872 1 092 135 1 575 511Term deposits 11 15 049 100 12 439 000 9 358 100Mutual funds 12 177 087 137 046 124 336

Insurance & reinsurance / retakaful receivables 13 169 600 224 831 167 786Other loans and receivables 14 3 110 438 2 771 909 2 139 138Taxation - payments less provision 337 727 278 075 58 550Prepayments 16 81 182 44 492 36 280Cash and bank 17 4 786 362 6 057 913 3 037 489

Total Assets 116 764 611 109 545 184 106 614 734

Equity and Liabilities

Capital and reserves attributable to Company's equity holders

Authorised share capital[150 000 000 ordinary shares (2017: 150 000 000) of Rs.10 each] 1 500 000 1 500 000 1 500 000

Ordinary share capital 18 1 000 000 1 000 000 1 000 000Ledger account D 18.3 1 748 449 1 529 902 1 342 205Reserves 19 2 150 000 1 900 000 1 650 000Surplus on revaluation of available for sale investment - net of tax 75 713 92 121 582 271Unappropriated profit 1 053 434 1 440 648 1 543 383

Total Equity 6 027 596 5 962 671 6 117 859

Liabilities

Insurance Liabilities 20 107 603 537 100 860 387 97 563 966

Deferred taxation 15 704 433 754 078 943 464Premium / contribution received in advance 714 419 656 323 575 806Insurance & reinsurance / retakaful payables 21 193 218 78 865 148 023Other creditors and accruals 22 1 521 408 1 232 860 1 265 616

3 133 478 2 722 126 2 932 909

Total Liabilities 110 737 015 103 582 513 100 496 875

Total Equity and Liabilities 116 764 611 109 545 184 106 614 734

Contingencies and commitments 24

The annexed notes 1 to 46 form an integral part of these financial statements.

31 December2018

31 December2017

1 January2017

(Restated) (Restated)

Note


HASANALI ABDULLAH SAIFUDDIN N. ZOOMKAWALA SYED SHAHID ABBAS TAHER G. SACHAK RAFIQUE R. BHIMJEEDirector Director Chief Financial Managing Director & Chairman

Officer Chief Executive

111

Statement of Financial PositionAs At 31 December 2018



112




Profit and Loss AccountFor The Year Ended 31 December 2018

(Rupees ‘000)

Premium / Contribution Revenue 30 790 407 31 420 835Premium / Retakaful ceded to reinsurers ( 626 139 ) ( 607 702 )

Net premium revenue 25 30 164 268 30 813 133

Investment income 26 6 942 391 6 411 124Net realised fair value ( losses ) / gains on financial assets 27 ( 3 739 394 ) 2 993 509Net fair value losses on financial assets at fair value through profit or loss 28 ( 3 058 297 ) ( 13 094 284 )Other income 29 63 277 33 564

207 977 ( 3 656 087 )

Net income 30 372 245 27 157 046

Insurance benefits 13 589 766 14 828 672Recoveries from reinsurers ( 504 051 ) ( 599 632 )Claims related expenses 8 736 8 894

Net Insurance Benefits 30 13 094 451 14 237 934

Net Change in Insurance Liabilities ( other than outstanding claims ) 6 577 382 3 236 906Acquisition expenses 31 6 750 979 5 458 476Marketing and administration expenses 32 1 602 816 1 406 542Other expenses 33 20 227 22 947

Total Expenses 14 951 404 10 124 871

Profit before tax 2 326 390 2 794 241

Income tax expense 34 ( 745 057 ) ( 884 279 )

Profit for the year 1 581 333 1 909 962

( Rupees )( Restated )

Earnings per share – Basic and Diluted 35 15.81 19.10


31 December2018

31 December2017

(Restated)

Note


113




Statement of Comprehensive IncomeFor The Year Ended 31 December 2018

(Rupees ‘000)


Other comprehensive income

Change in unrealised losses on available for sale financial assets ( 23 110 ) ( 700 214 )

Related deferred tax 6 702 210 064

Other comprehensive income for the year - net of tax ( 16 408 ) ( 490 150 )

Total comprehensive income for the year 1 564 925 1 419 812

31 December2018

31 December2017

(Restated)




114




Cash Flow StatementFor The Year Ended 31 December 2018

(Rupees ‘000)

Operating cash flows

a) Underwriting activitiesInsurance premium / contribution received 30 790 754 31 573 616Reinsurance premium / Retakaful contribution paid ( 398 806 ) ( 727 546 )Claims paid ( 13 423 998 ) ( 14 847 781 )Reinsurance and other recoveries received 504 051 599 632Commission paid ( 4 601 893 ) ( 3 826 444 )Marketing and Administrative expenses paid ( 1 602 816 ) ( 1 406 542 )Other acquisition cost paid ( 1 948 126 ) ( 1 598 808 )

Net cash flow from underwriting activities 9 319 166 9 766 127

b) Other operating activitiesIncome tax paid ( 847 653 ) ( 1 083 125 )Other operating payments ( 605 734 ) ( 1 380 308 )Loans advanced ( 52 844 ) ( 73 332 )Loans repayments received 22 872 70 606

Net cash flow from other operating activities ( 1 483 359 ) ( 2 466 159 )

Total cash flow from all operating activities 7 835 807 7 299 968

Investment activitiesProfit / Return received 6 236 055 5 889 847Dividends received 1 483 755 1 690 587Payments for investments ( 298 284 716 ) ( 151 278 517 )Proceed from investments 286 012 072 144 324 449Fixed capital expenditure ( 516 318 ) ( 271 018 )Proceeds from sale of property and equipment 71 894 21 008

Total cash flow from investing activities ( 4 997 258 ) 376 356

Financing activitiesDividends paid ( 1 500 000 ) ( 1 575 000 )

Total cash flow from financing activities ( 1 500 000 ) ( 1 575 000 )

Net cash flow from all activities 1 338 549 6 101 324

Cash and cash equivalents at beginning of the year 18 496 913 12 395 589

Cash and cash equivalents at end of the year 17.2 19 835 462 18 496 913

Reconciliation to profit and loss accountOperating cash flows 7 835 807 7 299 968Depreciation ( 220 306 ) ( 194 544 )Amortization ( 14 286 ) ( 11 759 )Profit on disposal of property and equipment 39 990 10 743Other revenue 14 137 12 961Dividend Income 1 473 722 1 615 827Other investment income 5 974 163 5 311 561Dimunition in market value of investments ( 3 244 298 ) ( 13 510 538 )Reversal / (Charge) of impairment in the value of available for sale equity investments ( 14 427 ) 120 300(Loss) / Profit on disposal of investments ( 3 739 394 ) 2 993 508Increase in assets other than cash 477 238 1 863 440Increase in liabilities ( 7 001 013 ) ( 3 601 505 )



31 December2018

31 December2017

(Restated)

Note


115

Statement of Changes in EquityFor The Year Ended 31 December 2018




Balance as at 1 January 2017 (As reported) 1 000 000 1 650 000 – 1 543 383 – 4 193 383Adjustment due to change in accounting

policy - Refer Note 5 – – 582 271 – 1 342 205 1 924 476

Balance as at 1 January 2017 (Restated) 1 000 000 1 650 000 582 271 1 543 383 1 342 205 6 117 859

Contribution to increase solvency margin – – – ( 90 116 ) 90 116 –

Total comprehensive income for theyear (Restated)

Profit for the year - after tax (Restated) – – – 1 812 381 97 581 1 909 962Other Comprehensive Income (Restated) – – ( 490 150 ) – – ( 490 150 )

– – ( 490 150 ) 1 812 381 97 581 1 419 812

Transactions with owners of the Company

Transfer to General Reserve – 250 000 – ( 250 000 ) – –Dividend for the year ended 31 December 2016

at the rate of Rs. 12.00 per share – – – ( 1 200 000 ) – ( 1 200 000 )Interim Dividend - 1st Quarter 2017

at the rate of Rs. 1.25 per share – – – ( 125 000 ) – ( 125 000 )Interim Dividend - 2nd Quarter 2017

at the rate of Rs. 1.25 per share – – – ( 125 000 ) – ( 125 000 )Interim Dividend - 3rd Quarter 2017

at the rate of Rs. 1.25 per share – – – ( 125 000 ) – ( 125 000 )

– 250 000 – ( 1 825 000 ) – ( 1 575 000 )

Balance as at 31 December 2017 (Restated) 1 000 000 1 900 000 92 121 1 440 648 1 529 902 5 962 671

Balance as at 1 January 2018 (As reported) 1 000 000 1 900 000 – 1 440 648 – 4 340 648Adjustment due to change in accounting

policy - Refer Note 5 – – 92 121 – 1 529 902 1 622 023

Balance as at 1 January 2018 (Restated) 1 000 000 1 900 000 92 121 1 440 648 1 529 902 5 962 671

Contribution to increase solvency margin – – – ( 12 809 ) 12 809 –

Total comprehensive income for the year

Profit for the year - after tax – – – 1 375 595 205 738 1 581 333Other comprehensive income – – ( 16 408 ) – – ( 16 408 )

– – ( 16 408 ) 1 375 595 205 738 1 564 925

Transactions with owners of the Company

Transfer to General Reserve – 250 000 – ( 250 000 ) – –Dividend for the year ended 31 December 2017

at the rate of Rs. 11.25 per share – – – ( 1 125 000 ) – ( 1 125 000 )Interim Dividend - 1st Quarter 2018

at the rate of Rs. 1.25 per share – – – ( 125 000 ) – ( 125 000 )Interim Dividend - 2nd Quarter 2018

at the rate of Rs. 1.25 per share – – – ( 125 000 ) – ( 125 000 )Interim Dividend - 3rd Quarter 2018

at the rate of Rs. 1.25 per share – – – ( 125 000 ) – ( 125 000 )

– 250 000 – ( 1 750 000 ) – ( 1 500 000 )

Balance as at 31 December 2018 1 000 000 2 150 000 75 713 1 053 434 1 748 449 6 027 596


(Rupees ‘000)

UnappropriatedProfit Total

RetainedEarning Ledger

Account D*

ShareCapital

Surplus onrevaluation ofavailable for

sale investment

GeneralReserve

Revenue Reserves

*This include balances maintained in accordance with the Insurance Rules, 2017 (previously the SEC Insurance Rules,2002) to meet solvency marginsand surplus of the family takaful investment linked business - Participant takaful fund amounting to Rs.75.4 million, which relates only to theparticipants of the Individual family takaful investment linked business.



116

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 EFU Life Assurance Limited (the Company) was incorporated in Pakistan on 09 August 1992 as a public limitedCompany under the Repealed Companies Ordinance, 1984 and started its operation from 18 November 1992. Theshares of the Company are quoted on Pakistan Stock Exchange. The registered office of the Company is locatedat Al-Malik Centre, 70W, F-7/G-7 Jinnah Avenue, Islamabad while principal place of business is located at EFU lifehouse Plot No.112, 8th East street, phase 1, DHA, Karachi.

1.2 The Company is a subsidiary of EFU General Insurance Limited on the basis of its ability to control the compositionof the Board of Directors of EFU Life Assurance Limited effective 31 March 2018.

1.3 The Company is engaged in life insurance business including ordinary life business, pension fund business andaccident and health business and has established following statutory funds, as required by the Insurance Ordinance,2000:

– Investment Linked business (includes individual life business)

– Conventional business (includes group life and individual life businesses)

– Pension business (unit linked)*

– Accident and health business

– Family Takaful Investment Linked Business (Refer note 1.4)

– Family Takaful Protection Business (Refer note 1.4)

* The Company had discontinued pension business and accordingly no new business has been written under thisfund.

1.4 The Company was granted authorisation on 19 January 2015 under Rule 6 of the Takaful Rules, 2012 to undertakeTakaful Window Operation in respect of family takaful products by Securities and Exchange Commission of Pakistan(SECP) and subsequently the Company commenced Window Takaful Operations on 6 February 2015 under thebrand name "Hemayah". For the purpose of carrying on takaful business, the Company has formed a Waqf namelyEFU Life - Window Family Takaful Limited Waqf (here-in-after referred to as the Participant Takaful Fund (PTF) wasformed on 6 February 2015 under a Waqf deed executed by the Company with a cede amount of Rs. 2 million. Thecede money is required to be invested in Shariah compliant investments and any profit thereon can be utilized onlyto pay benefits to participants or defray PTF expenses. Waqf deed also governs the relationship of the Companyand policyholders for the management of Takaful operations, investment of policyholders' funds and shareholders'funds as approved by the Shariah Advisor appointed by the Company.

2 BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE

2.1 These financial statements have been prepared on the format of financial statements issued by the Securities andExchange Commission of Pakistan (SECP) through the Insurance rules, 2017 vide its S.R.O. 89(1) / 2017 dated 09February 2017.

2.2 These financial statements have been prepared in accordance with the accounting and reporting standards asapplicable in Pakistan. The accounting and reporting standards comprise of:

– International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB)as are notified under the Companies Act, 2017; and

– Provisions of and directives issued under the Companies Act, 2017 and Insurance Ordinance, 2000, InsuranceRules 2017, Takaful Rules, 2012 and Insurance Accounting Regulations, 2017.

In case requirements differ, the provisions or directives of the Companies Act, 2017, the Insurance Ordinance, 2000,the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017, shall prevail.

2.3 Basis of measurement

These financial statements have been prepared on the basis of the historical cost convention except as disclosedin accounting policies relating to investments.

Notes to and forming part of theFinancial StatementsFor The Year Ended 31 December 2018


117

2.4 Functional and presentation currency

These financial statements are presented in Pak Rupee, which is the Company’s functional and presentation currency.

2.5 Standards, Interpretations and Amendments effective in 2018

There are certain new and amended standards, interpretations and amendments that are mandatory for theCompany's accounting periods beginning on or after 01 January 2018 but are considered not to be relevant or donot have any significant effect on the Company's operations and therefore not detailed in these financial statements.During the year, certain new standards and amendments to existing standards became effective. However, theydid not have material effect on these financial statements.

SECP vide its S.R.O. 88(1) / 2017 and S.R.O. 89(1) / 2017 dated 09 February 2017 has issued Insurance AccountingRegulations, 2017 and Insurance Rules, 2017 which prescribed a new format for the financial statements of InsuranceCompanies, effective from the year ended 31 December 2018. Accordingly, these financial statements are preparedin accordance with the new format.

The Company has adopted these Rules and Accounting regulations 2017 and accordingly has changed its accountingpolicies refer note 5.

In addition, Companies Act, 2017 also became effective for the financial statements for the year ended 31 December2017. As the financial statements are prepared in accordance with the format prescribed by SECP, it did not havea direct impact on the financial statements.

2.6 Standards, Interpretations and amendments not effective at year end

The following International Financial Reporting Standards (IFRS Standards) as notified under the Companies Act,2017 and the amendments and interpretations thereto will be effective for accounting periods beginning on orafter 01 January 2019:

– IFRIC 23 'Uncertainty over Income Tax Treatments' (effective for annual periods beginning on or after 1 January2019) clarifies the accounting for income tax when there is uncertainty over income tax treatments under IAS12. The interpretation requires the uncertainty over tax treatment be reflected in the measurement of currentand deferred tax. The application of interpretation is not likely to have an impact on Company's financialstatements.

– IFRS 15 'Revenue from contracts with customers' (effective for annual periods beginning on or after 1 July 2018).IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue isrecognized. It replaces existing revenue recognition guidance, including IAS 18 'Revenue', IAS 11 ConstructionContracts' and IFRIC '13 'Customer Loyalty Programmes'. The application of interpretation is not likely to havean impact on the Company's financial statements.

– IFRS 9 'Financial Instruments' and amendment - Prepayment Features with Negative Compensation (effectivefor annual periods beginning on or after 1 July 2018 and 1 January 2019 respectively). IFRS 9 replaces the existingguidance in IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 includes revised guidance onthe classification and measurement of financial instruments, a new expected credit loss model for calculatingimpairment on financial assets, and new general hedge accounting requirements. It also carries forward theguidance on recognition and derecognition of financial instruments from IAS 39. However, SECP through itsnotification no. S.R.O 229 (I)/2019 dated 14 February 2019 has deferred the applicability of IFRS 9 for reportingperiod / year ending on or after 30 June 2019. The Company is currently in the process of analysing the potentialimpact of changes required in classification and measurement of financial instruments and the impact of expectedloss model on adoption of the standard.

– Amendment to IFRS 4 ‘Insurance Contracts’- Applying IFRS 9 ‘Financial Instruments’ with IFRS 4 (effective for annualperiods beginning on or after 1 July 2018). The amendment address issue arising from the different effective datesof IFRS 9 and the forthcoming new standard IFRS 17 ‘Insurance Contracts’. The amendments introduce twoalternative options for entities issuing contracts within the scope of IFRS 4, notably a temporary exemption andan overlay approach. The temporary exemption enables eligible entities to defer the implementation date of IFRS.The overlay approach allows an entity applying IFRS 9 from 1 July 2018 onwards to remove from profit or loss theeffects of some of the accounting mismatches that may occur from applying IFRS 9 before IFRS 17 is applied. TheCompany has adopted the temporary exemption which allows the Company to defer the application of bothIFRS 9 and IFRS 17 until 31 December 2021.



118

– IFRS 16 'Leases' (effective for annual period beginning on or after 1 January 2019). IFRS 16 replaces existingleasing guidance, including IAS 17 'Leases' , IFRIC 4 'Determining whether an Arrangement contains a Lease' ,SIC-15 'Operating Leases- Incentives' and SIC - 27 'Evaluating the Substance of Transactions Involving the LegalForm of a Lease'. IFRS 16 introduces a single, on - balance sheet lease accounting model for lessees. A lesseerecognizes a right - of - use asset representing its right to use the underlying asset and a lease liability representingits obligation to make lease payments. There are recognition exemptions for short - term leases and leases oflow-value items. Lessor accounting remains similar to the current standard i.e. lessors continue to classify leasesas finance or operating leases. The Company is currently in the process of analyzing the potential impact of itslease arrangements that will result in recognition of right to use assets and liabilities on adoption of the standard.

– Amendment to IAS 28 'Investments in Associates and Joint Ventures' - Long Term Interests in Associates andJoint Ventures (effective for annual period beginning on or after 1 January 2019). The amendment will affectcompanies that finance such entities with preference shares or with loans for which repayment is not expectedin the foreseeable future (referred to as long - term interests or 'LTI' ). The amendment and accompanyingexample state that LTI are in the scope of both IFRS 9 and IAS 28 and explain the annual sequence in which bothstandards are to be applied. The amendments are not likely to have an impact on Company's financial statements.

– Amendments to IAS 19 'Employee Benefits' - Plan Amendment, Curtailment or Settlement (effective for annualperiods beginning on or after 1 January 2019). The amendments clarify that on amendment, curtailment orsettlement of a defined benefit plan, a Company now uses updated actuarial assumptions to determine itscurrent service cost and net interest for the period; and the effect of the asset ceiling is disregarded whencalculating the gain or loss on any settlement of the plan and is dealt with separately in other comprehensiveincome. The application of amendments is not likely to have an impact on Company's financial statements.

– Amendment to IFRS 3 'Business Combinations' - Definition of a Business (effective for business combinationsfor which the acquisition date is on or after the beginning of annual period beginning on or after 1 January2020). The IASB has issued amendments aiming to resolve the difficulties that arise when an entity determineswhether it has acquired a business or a group of assets. The amendments clarify that to be considered a business,an acquired set of activities and assets must include, at a minimum, an input and a substantive process thattogether significantly contribute to the ability to create outputs. The amendments include an election to use aconcentration test. The standard is effective for transactions in the future and therefore would not have animpact on past financial statements.

– Amendments to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in AccountingEstimates and Errors (effective for annual periods beginning on or after 1 January 2020). The amendments areintended to make the definition of material in IAS 1 easier to understand and are not intended to alter the underlyingconcept of materiality in IFRS Standards. In addition, the IASB has also issued guidance on how to make materialityjudgments when preparing their general purpose financial statements in accordance with IFRS Standards.

– Annual Improvements to IFRS Standards 2015 - 2017 Cycle - the improvements address amendments to followingapproved accounting standards:

– IFRS 3 Business Combinations and IFRS 11 Joint Arrangement - the amendment aims to clarify the accountingtreatment when a Company increases its interest in a joint operation that meets the definition of a business. ACompany remeasures its previously held interest in a joint operation when it obtains joint control of the business.

– IAS 12 Income Taxes - the amendment clarifies that all income tax consequences of dividends (includingpayments on financial instruments classified as equity) are recognized consistently with the transaction thatgenerates the distributable profits.

– IAS 23 Borrowing Costs - the amendment clarifies that a Company treats as part of general borrowings anyborrowing originally made to develop an asset when the asset is ready for its intended use or sale.

The above amendments are effective from annual period beginning on or after 1 January 2019 and are not likelyto have an impact on Company's financial statements.


119

3.1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies adopted in the preparation of these financial statements are consistent with those of theprevious financial year except for the policies and standards disclosed in note 5 of these financial statements whichhave been adopted by the Company during the current year.

3.1.1 Property and Equipment

These are stated at cost less accumulated depreciation and accumulated impairment loss, if any.

Depreciation is calculated so as to write off the depreciable amount of the assets over their expected useful lives atthe rates specified in note 6.1 to the financial statements, after taking into account residual value, if any. The usefullives, residual values and depreciation methods are reviewed and adjusted, if appropriate, at each balance sheet date.

Depreciation on additions is charged from the quarter in which an asset is available for use while no depreciationis charged for the quarter in which asset is disposed off.

Subsequent cost are included in the assets carrying amount or recognized as separate asset, as appropriate, onlywhen it is possible that the future economic benefit associated with the item will flow to the Company and the costof the item can be measured reliably. Revenue expenditures are charged to profit and loss account.

An item of fixed asset is derecognized upon disposal or when no future economic benefits are expected from itsuse or disposal. Gain and losses on disposal, if any, of assets are included in profit and loss account currently.

The carrying value of tangible fixed assets is reviewed for impairment when events or changes in circumstancesindicate that this carrying value may not be recoverable. If any such indications exist and where the carrying valuesexceed the estimated recoverable amounts, the assets are written down to their recoverable amount.

3.1.2 Intangible assets

These are stated at cost less accumulated amortization and any impairment in value. Amortization on intangiblefixed assets is charged to profit and loss account applying the straight line method at the rates specified in note 7to the financial statements after taking into account residual value, if any.

Amortization is charged from the quarter the assets are available for use and no amortization is charged for thequarter in which the asset is disposed off. The useful life and amortization method is reviewed, and adjusted ifappropriate, at each balance sheet date.

The carrying values of intangible fixed assets are reviewed for impairment when events or changes in circumstancesindicate that this carrying value may not be recoverable, if any such indication exists and where the carrying valuesexceed the estimated recoverable amount, the assets are written down to their recoverable amount.

3.1.3 Insurance Contracts

Classification

The Company currently issues contracts that are classified as insurance and takaful contracts as they transfersignificant insurance risk (against death, disability and sickness) from the policyholder to the Company. All contractswhich include an investment element are unit-linked contracts linked to internal mutual funds.

The Company classifies its business into Individual Life and Group Life businesses, in both cases the form of contractconsisting of main plans and supplementary riders (which are generally optional).

Individual life business mainly consists of unit - linked products and conventional protection products, in both caseswith optional supplementary riders which generally provide protection only. Group Life business consists primarilyof protection products and a relatively small number of unit-linked policies.



120

3.1.3.1 Contract details and measurement

The insurance contracts offered by the Company are described below:

Individual Life Policies

These consist of the following types of policies:

(a) Unit-Linked Products

These are medium to long term unit-linked plans designed to address a variety of future policyholder needs,such as retirement planning, education planning for children, marriage planning for children, life protectionand investments and savings for future. Premiums received from policyholders and after deduction of specifiedcharges including risk charges, are invested in internal unit funds of the Company. The basic plan contains lifecover over and above the unit value, with additional protection (for death, disability and sickness) being providedthrough the addition of optional riders.

(b) Conventional Protection Products

Two types of products are offered under Individual life conventional business, these being medium to longterm contracts with level premiums being paid over the policy period. The Company offers a standard termlife assurance product that offers protection in event of death as well as a decreasing term life assurance policythat covers outstanding loan balances.

(c) Family Takaful Investment linked Products

These are medium to long term unit-linked plans operated through Window Takaful Operations of EFU LifeAssurance Limited.

The Company offers Unit-Linked Takaful Plans which provide shariah compliant financial protection andinvestment vehicle to individual participants. These plans carry cash value, and offer investment choices to theparticipants to direct their investment related contributions based on their risk / return objectives. The investmentrisk is borne by the participants.

(d) Accident and Health Products

These consist of long term and short term Accident and Health products providing cover against accidentaldeath, disability, sickness and critical illness, offered both as long term as well as yearly renewable plans.

(e) Other Supplementary Benefits

The Company also offers a variety of supplementary benefits attached with main plans including additionalterm life assurance, income benefits, critical illness, sickness and accidental death and disability related benefits.

Group Life and Group Family Takaful Protection Policies

(a) Nature of Contracts:

The Company’s group life and group takaful business consists of one year term life contracts which providecoverage, in the event of death or disability, to:

– employees of a common employer, benefits payable under these contracts being either fixed, in case ofdeath, or linked to the extent of loss incurred by the policyholder, in case of disability;

– customers of financial institutions, the contracts being issued to financial institutions to protect their customers’outstanding loan balances, such as on personal loan, mortgages and credit cards.

Unit-Linked Group Life policies are similar in nature to Individual Life Unit linked Products.

3.1.4 Policyholders’ Liability

Policyholders' liabilities are stated at a value determined by the appointed actuary through an actuarial valuationcarried out as at each balance sheet date. In determining the value, both acquired policy values (which forms thebulk of policyholders' liabilities) as well as estimated values which will be payable against risks which the Companyunderwrites are taken into account. The bases used are applied consistently from year to year.


121

The basic liability consists of the estimated actuarial liability against each contract which is in force. To this are added:

a) The cash value of policies which have lapsed over the last two years and where the liability would be reinstatedin case of the policy being revived; and

b) A reserve for potential losses on a policy by policy basis.

3.1.5 Reinsurance contracts held

The Company has entered into reinsurance / retakaful (hereinafter referred to as “reinsurance”) arrangements, forboth its individual and group businesses, in order to manage risks associated with the frequency and severity ofclaims. These arrangements include cover under treaties as well as on a facultative basis. The terms of reinsurancetreaties vary by type of business, the objective being to maintain a reasonable risk profile suiting the risk appetiteand overall exposure to adverse movements in mortality or morbidity.

Primarily, reinsurance assets are amounts due from reinsurers with respect to recoveries under claims and profitcommission. Reinsurance recoveries are measured according to the terms and conditions of the reinsurance contracts.

Reinsurance liabilities consist of amounts due to reinsurers on account of reinsurance premiums due which aremeasured according to the terms of the arrangements.

3.1.6 Receivables and payables related to insurance contracts

Receivables and payables are recognised when due. These include amount due to and from agents and policyholders.

3.1.7 Operating Segments

A business segment is a group of assets and operations engaged in providing products or services that are subjectto risks and returns that are different from those of other business segments. The Company accounts for segmentreporting using the classes or sub classes of business (statutory funds) as specified under the Insurance Ordinance,2000 and Insurance Rules, 2017 under regulatory accounts.

Based on its classification of Insurance contracts issued, the Company has six business segments for reportingpurposes namely investment linked business, conventional business, pension business, accident and health business,Family takaful investment linked business and Family takaful protection business.

3.1.8 Cash and Cash equivalents

For the purpose of statement of cash flows, cash and cash equivalents include the following:

– Cash at bank in current and saving accounts;

– Policy stamps in hand; and

– Term Deposits Receipts with original maturity up to three months.

3.1.9 Revenue recognition

– First year individual life premiums / Contributions are recognized once the related policies have been issued andthe premium is received. Renewal premiums are recognized upon receipt of premium provided the policy is stillin force. Single premiums are recognized once the related policies are issued against the receipts of premium.

– Group life premiums are recognized when due. A provision for unearned premiums is included in the policyholders'liabilities.

– Interest / profit income on bank deposits is recorded on a time proportion basis.

– Fixed income securities are recorded on a time proportion basis using effective interest rate method.

– Dividend income is recognized when right to receive such dividend is established.

3.1.10 Experience refund of premium payable to Policyholders except for individual life unit-linked is included in outstandingclaims.



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3.1.11 Reinsurance / Retakaful expense is recognized as a liability in accordance with the treaty arrangement of reinsurers.

3.1.12 Investments

All investments are initially recognized at cost, being the fair value of the consideration given and include transactioncosts. All purchase and sale of investments that require delivery within the required time frame established byregulations or market convention are accounted for at the trade date. Trade date is the date when the Companycommits to purchase or sell the investments. Subsequently the investments are classified as follows:

– In equity securities

Fair Value through profit and loss

Investments in equity securities relating to units assigned to policies of investment linked business, pension businessand Family takaful investment linked business are subsequently measured at their fair values and the difference ischarged to profit or loss account under the heading 'Fair value through Profit and loss Account.

Available for sale

Investment related to non - unit linked fund subsequently measured at fair value and the difference is charged toOther comprehensive income under the heading 'Available for sale'

– In debt securities

Held-to-maturity

Investment classified as held-to-maturity are subsequently measured at amortised cost, taking into account anydiscount and premium on acquisition, using the effective rate of interest method.

Fair value through profit and loss account

Investments in debt securities relating to units assigned to policies of investment linked business, pension businessand Family takaful investment linked business are subsequently measured at their fair values and the differences ischarged to profit and loss account.

– In term deposits

It represents investment in term deposits with banks held for short term usually less than 12 months.

– In mutual funds

Fair Value through profit and loss

Investments in mutual funds relating to units assigned to policies of investment linked business, pension businessand Family takaful investment linked business are subsequently measured at their fair values and the differencetaken in fair value through profit and loss account.

Available for sale

Investment related to non - unit linked fund subsequently measured at fair value and the difference is charged toOther comprehensive income under the heading 'Available for sale'.

– Fair / market value measurements

For investments in Government securities, fair / market value is determined by reference to quotations obtainedfrom Reuters page (PKRV) where applicable. For investments in quoted marketable securities, other than TermFinance Certificates, fair / market value is determined by reference to Stock Exchange quoted market price at theclose of business on balance sheet date. The fair market value of Term Finance Certificates is as per the rates issuedby the Mutual Funds Association of Pakistan (MUFAP).

– Reclassification of Available for sale portfolio of unit-linked funds

During the year, the Company has changed its accounting policy for the valuation of the available for sale investmentsof non unit linked business to comply, as disclsoed in note 5 to these financaial statements with the requirementsof the Insurance Accounting Regulations, 2017 issued by the SECP vide its SRO 88(1)/2017 dated February 9, 2017.In line with the requirements of the Rules, subsequent to initial recognition, the quoted Available for sale investmentsare to be valued at market value. On derecognition or impairment of available for sale investments, the cumulativegains or losses previously reported in revaluation reserve are reclassified to the Profit and Loss Account for the year.


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3.1.13 Off - setting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet, if the Companyhas a legally enforceable right to set off and the Company intends either to settle the assets and liabilities on a netbasis or to realize the asset and settle the liability simultaneously.

3.1.14 Provisions

Provisions are recognized when the Company has a legal or constructive obligation as a result of a past event, andit is probable that outflow of resources embodying economic benefits will be required to settle the obligation anda reliable estimate can be made of the amount of obligation.

3.1.15 Taxation

Current

Provision of current tax is based on the taxable income for the year determined in accordance with the Income TaxOrdinance, 2001. The charge for current tax is calculated using prevailing tax rates or tax rates expected to applyto the profit for the year, if enacted. The charge for current tax also includes adjustments, where considered necessary,to provision for tax made in previous years arising from assessments finalized during the current year for such years.

Deferred

Deferred tax is accounted for using the balance sheet liability method in respect of all temporary differences at thebalance sheet date between the tax bases and carrying amounts of assets and liabilities for financial reportingpurposes. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred taxassets are recognized to the extent that it is probable that taxable profits will be available against which the deductibletemporary differences, unused tax losses and tax credits can be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the assetis realized or the liability is settled, based on the tax rates (and tax laws) that have been enacted or substantivelyenacted at the balance sheet date. Deferred tax is charged or credited in the profit and loss account, except in thecase of items credited or charged to equity in which case it is included in equity.

3.1.16 Employees' retirement benefits - defined contribution plans

3.1.16.1 The Company operates a contributory provident fund for all eligible employees to which equal monthly contributionsat the rate of 8.33% of basic salary are made by both the Company and the employees. The contributions arerecognized as employee benefit expense when they are due.

3.1.16.2 The Company also operate an approved funded contributory pension scheme, whereby, fixed monthly contributionsat the rate of 10% of the basic salary are made by the Company and the employees also have an option to contributein the fund at the rate of 5%. At the time of retirement, employees are paid in full for their contribution, if any,and Company's contribution accumulated in the fund is paid to employees over the period of time in accordancewith the rules of the fund.

3.1.17 Impairment of assets

The carrying amount of assets are reviewed at each balance sheet date to determine whether there is any indicationof impairment of any asset or group of assets. If such indication exists, the recoverable amount of the asset isestimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverableamount. Impairment losses are recognised in profit and loss account.

3.1.18 Dividends and other appropriations

Cash dividend to shareholders is recognized as liability in the period in which it is approved. Similarly all otherappropriations other than those required by law including reserve for issue of bonus shares are recognized in theperiod in which they are approved.

3.1.19 Reinsurance assets

Reinsurance contracts entered into by the Company with reinsurers for compensation of losses suffered on insurancecontracts issued. Claim recoveries receivable from the reinsurers are recognized at the same time as the claim whichgive rise to the right of recovery and are measured at the amount expected to be recovered.



124

Reinsurance assets represent balances due from reinsurance companies which are stated on the basis of amountsreceivable under the respective contract after considering any impairment in the value of such assets.

3.1.20 Statutory funds

The Company maintains statutory funds for all classes of life insurance business. Assets, liabilities, revenues andexpenses are recorded in respective funds, if referable or, on the basis of actuarial advice if not referable. Otherassets, liabilities, revenues and expenses are allocated to shareholders' fund. Policyholders' liabilities have beenincluded in statutory funds on the basis of the actuarial valuation carried out by the appointed actuary of theCompany on the balance sheet date as required by Section 50 of the Insurance Ordinance, 2000. A capital transferprovided to statutory funds by the shareholders’ fund is recorded as a reduction in the shareholders’ equity. Changesin the amount of capital contributed to statutory funds is recorded by the shareholders' funds directly in equity.

3.1.21 Provision for outstanding claims

A liability for outstanding claims is recognized in respect of all claims incurred up to the balance sheet date, exceptfor accident and health claims which are recognized as soon as reliable estimates of the claim amount can be made.Claims where intimation of the event giving rise to the claim is received or in respect of investment linked businesswhen the policy ceases to participate in the earnings of the statutory fund are reported as claims in the revenueaccount. The liability for claims incurred but not reported at the year end is determined by the Appointed Actuaryand are included in the policyholders' liabilities. Experience refund of premium calculated by appointed actuary isincluded in outstanding claims. Experience refund of premium receivable from reinsurers is included in the reinsurancerecoveries of claim.

3.1.22 Acquisition costs

These are costs incurred in acquiring insurance policies, maintaining such policies, and include without limitationall forms of remuneration paid to insurance agents.

Commissions and other expenses are recognized as an expense in the earlier of the financial year in which they arepaid and financial year in which they become due and payable, except that commission and other expenses whichare directly referable to the acquisition or renewal of specific contracts are recognized not later than the period inwhich the premium to which they refer is recognized as revenue.

3.1.23 Foreign currency transactions

3.1.23.1Functional and presentation currency

These financial statements are presented in Pak Rupee, which is the Company’s functional and presentation currency.

3.1.23.2Foreign currency translations

Foreign currency transactions during the year are recorded at the exchange rates approximating those ruling onthe date of the transaction. Monetary assets and liabilities in foreign currencies are translated at the rates of exchangewhich approximate those prevailing on the balance sheet date. Gain and losses on translation are taken into profit& loss account currently. Non monetary - items that are measured in terms of historical cost in a foreign currencyare translated using the exchange rates as at the dates of the initial transactions. Non - monetary items measuredat fair value in a foreign currency are translated using the exchange rates at the date when the fair value wasdetermined.

3.1.24 Financial Instruments

Financial assets and financial liabilities are recognized at the time when the Company becomes a party to thecontractual provisions of the instrument. Financial assets are derecognized when the contractual right to future cashflows from the asset expire or is transferred along with the risk and reward of the ownership of the asset. Financialliabilities are derecognized when obligation specified in the contract is discharged, cancelled or expired. Any gainor loss on derecognition of the financial asset and liabilities is recognized in the profit and loss account of the currentyear.

3.2 Significant Accounting Policies - Window Family Takaful Operations

3.2.1 Takaful Contracts

The takaful contracts are based on the principles of Wakala Waqf Model. Takaful is a program based on Shariahcompliant, approved concept founded on the principles of mutual cooperation, solidarity and brotherhood.


125

The obligation of Waqf for Waqf participants' liabilities is limited to the amount available in the Waqf fund. In theevent where there is insufficient funds in Waqf to meet their current payments less receipts, the deficit is fundedby way of an interest free loan (Qard-e-Hasna) from the Operator sub fund to participant takaful fund and groupfamily takaful. The amount of Qard-e-Hasna is refundable to the Operator sub fund.

Technical reserves are stated at a value determined by the appointed actuary through an actuarial valuation carriedout as at each balance sheet date, in accordance with section 50 of the Insurance Ordinance, 2000.

3.2.2 Group Takaful

The group family takaful contracts are issued typically on yearly renewable term basis. The Company offers groupterm life and group credit plans to its participants.

3.2.3 Individual Takaful Contracts Unit - Linked

The Company offers unit - linked Takaful plans which provide Shariah compliant financial protection and investmentvehicle to individual participants contribution received from policyholders, after deducting specific charges andtakaful donations, are invested in internal unit funds of the Company.

The basic plan contains family takaful cover over and above the unit value with additional protection.

3.2.4 Retakaful

These contracts are entered into by the Company with retakaful operator under which the retakaful operator cedesthe takaful risk assumed during normal course of its business and according to which the Waqf is compensated forlosses on contract issued by it are classified as retakaful contracts held.

Retakaful Contribution

Retakaful contribution is recorded at the time the retakaful is ceded. Surplus from retakaful operator is recognizedin the revenue account.

Retakaful Expenses

Retakaful expenses are recognized as a liability in accordance with the pattern of recognition of related contribution.

Retakaful assets and liabilities

Retakaful assets represent balances due from retakaful operators. Recoverable amounts are estimated in a mannerconsistent with the associated retakaful treaties.

Retakaful liabilities represent balances due to retakaful operators. Amounts payable are calculated in a mannerconsistent with the associated retakaful treaties.

Retakaful assets are not offset against related retakaful liabilities. Income or expenses from retakaful contract arenot offset against expenses or income from related retakaful contracts as required by Insurance Ordinance, 2000.

Retakaful assets and liabilities are derecognized when the contractual rights are extinguished or expired.

3.2.5 Business Segment - Window Family Takaful Operation

The Company has two primary business segment for reporting purposes; Family Takaful Investment Linked Businessand Family Takaful Protection Business.

a) The Family Takaful Investment Linked Business segments provides family takaful coverage to individuals underunit - linked policies issued by the PTF.

b) The Family Takaful Protection Business segment provides family takaful coverage to member of businessenterprises, corporate entities and common interest groups under group family takaful scheme operated by theCompany.

3.2.6 Takaful operator's fee

The shareholders of the Company manage the family takaful operations for the participants and act as Wakeel ofthe Waqf fund. The Company is entitled for the wakala fee for the management of takaful operation under Waqffund to meet its general and administrative expenses.



126

The window takaful operator is also entitled for Wakalt-ul-Istismar fee as it manages Participant Investment Fund.

3.2.7 Revenue recognition

Individual first year contribution are recognized once the related policies have been issued and the contributionreceived. Renewal contribution are recognized upon receipt of contribution provided the policy is still in force.Individual single contribution are recognized once the related policies are issued against the receipts of contribution.

Group contribution are recognized when due. A provision for unearned contribution is included in the policyholders'liabilities.

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of financial statements in conformity with accounting and reporting standards requires the use ofcertain critical accounting estimates. It also requires management to exercise its judgment in the process of applyingthe Company’s accounting polices. Estimates and judgments are continually evaluated and are based on historicexperience and other factors, including expectations of future events that are believed to be reasonable under thecircumstances. Revisions to accounting estimates are recognized in the period in which the estimate is revised andany future periods affected.

In the process of applying the Company’s accounting policies, management has made the following estimates andjudgments which are significant to the financial statements:

Note

Policyholders' liabilities and underlying actuarial assumptions 3.1.4Provision for outstanding claims 20.1Classification and impairment of investments 3.1.12,8,9,10,11,12, 26, 27, 28Taxation and deferred taxation 3.1.15, 34Determining the residual value and useful lives of fixed assets 3.1.1, 3.1.2, 6, 7

5. CHANGE IN ACCOUNTING POLICY

a) The SECP vide S.R.O. 89(1)/2017 dated February 9, 2017 has issued Insurance Rules, 2017 (the Rules) whichrequires every insurer to prepare their financial statements as per the presentation and disclosure requirementsprescribed in Annexure II of the Rules. In view of the applicability of the Rules, the Company has changed itspresentation and disclosure format to comply with the requirements of the said Rules.

b) As a result, retained earnings on other than participating business which was previously reported in Balanceof Life Fund, will now be reported in Statement of Changes in Equity net of deferred tax as Ledger AccountD. Further any loss on statutory fund will be transferred to Profit and Loss Account, which was previouslyretained in statutory fund as capital contribution.

c) During the year, the Company has changed its accounting policy for the valuation of the Available for Saleinvestments of non unit-linked business to comply with the requirements of the Insurance Accounting Regulations,2017 issued by the SECP vide its SRO 88(1)/2017 dated February 9, 2017, which requires the valuation ofAvailable for Sale investments at fair value. In line with the requirements provided in the Rules, subsequentto initial recognition, the quoted Available for Sale investments are to be valued at market value and anyunrealised gains or losses arising on the revaluation of Available for Sale investments is charged to OtherComprehensive Income and transferred to revaluation reserve. On derecognition or impairment of Availablefor Sale investments, the cumulative gains or losses previously reported in revaluation reserve are reclassifiedto the Profit and Loss Account for the period. This change in accounting policy has been applied retrospectivelyin accordance with the requirements of IAS 8 'Accounting Policies, Changes in Accounting Estimates andErrors', and comparatives have been restated to confirm to the changed policy. Further previously Availablefor Sale investment relating to the units assigned to policies of Unit-Linked businesses were subsequentlymeasured at fair value and the difference was recorded in the Revenue Account. During the year, the Companyhas reclassified such investments portfolio as Financial Assets at Fair Value through Profit and Loss account,designated upon initial recognition to meet the requirements of Insurance Accounting Regulation, 2017.However, it has no effects on the financial results.


127

d) Previously, subsequent to initial recognition, the quoted Available for Sale investments for Non Unit linkedportfolio were stated at lower of cost or market value (Market value being taken as lower if the reduction isother than temporary) in accordance with the requirements of the SEC Insurance Rules, 2002.

Accordingly, retrospective adjustments have been made in these annual financial information and comparativeshave been revised as follows:

As at 31 December 2016

In Statement of Financial Position

Investments - Equity securities and Mutual Funds 38 385 604 831 816 39 217 420

Retained Earning Ledger Account D - previouslysolvency margin ( 1 905 124 ) 562 919 ( 1 342 205 )

Surplus on revaluation of available for sale investment – ( 582 271 ) ( 582 271 )

Deferred taxation ( 131 000 ) ( 812 464 ) ( 943 464 )

As at 31 December 2017

In Statement of Financial Position

Investments - Equity securities and Mutual Funds 27 841 809 131 601 27 973 410

Retained Earning Ledger Account D - previouslysolvency margin ( 2 108 700 ) 578 798 ( 1 529 902 )

Surplus on revaluation of available for sale investment – ( 92 121 ) ( 92 121 )

Deferred taxation ( 135 800 ) ( 618 278 ) ( 754 078 )

For the period ended 31 December 2017

Impact on Profit and Loss Account due to:

Change in Retained Earnings on other thanparticipating business (Ledger Account D) 97 581

Impact on Other Comprehensive Income due to:

Unrealized gain on available for sale investment ( 700 214 )

Related tax impact 210 064

Impact on Earnings per share (after tax) - Basic and Diluted Rupees

Change is basic EPS 0.98

Balancepreviouslyreported Adjustments

Balance(Restated)

(Rupees in ‘000)



128

Lease hold land 126 505 – – 126 505 – – – – 126 505 –

Building 1 269 990 48 710 – 1 318 700 15 875 64 379 – 80 254 1 238 446 5

Office equipment 275 511 38 403 ( 2 271 ) 311 643 39 188 26 326 ( 1 281 ) 64 233 247 410 10

Computers 135 416 27 874 ( 162 ) 163 128 87 134 19 809 ( 134 ) 106 809 56 319 30

Furniture and fixture 372 951 44 628 ( 936 ) 416 643 149 263 24 437 ( 553 ) 173 147 243 496 10

Vehicles 424 010 109 661 ( 31 714 ) 501 957 180 176 59 593 ( 22 850 ) 216 919 285 038 20

Total 2 604 383 269 276 ( 35 083 ) 2 838 576 471 636 194 544 ( 24 818 ) 641 362 2 197 214

Cost DepreciationAs at

01 Jan2017 Additions Disposals

As at31 Dec2017

As at01 Jan2017

Chargefor the

yearOn

Disposal

As at31 Dec2017

Writtendown value31 Dec 2017

DepreciationRate

%

31 December 2017

6.1 Operating assets(Rupees ‘000)

Lease hold land 126 505 – – 126 505 – – – – 126 505 –

Building 1 318 700 15 000 – 1 333 700 80 254 62 485 – 142 739 1 190 961 5

Office equipment 311 643 19 855 ( 430 ) 331 068 64 233 25 702 ( 281 ) 89 654 241 414 10

Computers 163 128 37 497 ( 640 ) 199 985 106 809 21 810 ( 585 ) 128 034 71 951 30

Furniture and fixture 416 643 79 768 – 496 411 173 147 28 421 – 201 568 294 843 10

Vehicles 501 957 334 503 ( 104 856 ) 731 604 216 919 81 888 ( 73 156 ) 225 651 505 953 20

Total 2 838 576 486 623 ( 105 926 ) 3 219 273 641 362 220 306 ( 74 022 ) 787 646 2 431 627



As at31 Dec2018

As at01 Jan2018

Chargefor the

yearOn

Disposal

As at31 Dec2018


DepreciationRate

%

31 December 2018

6.1.1 The market value of land and building is estimated at Rs. 3,322 million as at 31 December 2018. The valuations havebeen carried out by independent valuer.

6. PROPERTY AND EQUIPMENT(Rupees ‘000)

31 December2018

31 December2017

Operating assets 6.1 2 431 627 2 197 214

2 431 627 2 197 214

Note

(Rupees ‘000)


129

6.1.2 Disposal of fixed assets (Rupees ‘000)

Vehicles 360 332 28 225 197 Negotiation Waqar Asif Malik EmployeeVehicles 651 591 60 450 390 Negotiation Ayesha Chaudary EmployeeVehicles 494 434 60 250 190 Negotiation Sajjad Haider Barcha EmployeeVehicles 494 438 56 260 204 Negotiation Afnan Aftab EmployeeVehicles 494 431 63 225 162 Negotiation Shahid Abbas Chughtai ExternalVehicles 1,324 1,173 151 920 769 Negotiation Kh. Shoaib Mumtaz EmployeeVehicles 905 802 103 480 377 Negotiation Asim Maqbool EmployeeVehicles 815 710 105 480 375 Negotiation Akbar Ali EmployeeVehicles 588 504 84 380 296 Negotiation Sajid Romaze EmployeeVehicles 850 729 121 500 379 Negotiation Masood Sheraz EmployeeVehicles 850 729 121 500 379 Negotiation Rana Abdus ExternalVehicles 1,764 1,448 316 1,050 734 Negotiation Muhammad Kashif EmployeeVehicles 1,764 1,481 283 1,000 717 Negotiation Rizwan Ali Bukhari EmployeeVehicles 485 403 82 250 168 Negotiation Tanveer Hyder EmployeeVehicles 516 408 108 300 192 Negotiation Abdul Basit ExternalVehicles 516 424 92 275 183 Negotiation Anwar Ahmed ExternalVehicles 1,078 838 240 715 475 Negotiation Rehan Siddiqui EmployeeVehicles 1,078 838 240 725 485 Negotiation Sunita Kumari EmployeeVehicles 1,078 874 204 740 536 Negotiation Rizwan Malik EmployeeVehicles 1,078 874 204 740 536 Negotiation Irfan Bashir EmployeeVehicles 1,078 838 240 750 510 Negotiation Khawaja Khurram Amin EmployeeVehicles 877 710 167 500 333 Negotiation Tariq Mustafa EmployeeVehicles 891 712 179 565 386 Negotiation Mr. Idress EmployeeVehicles 1,718 1,313 405 1,150 745 Negotiation Noor Ur Rehman EmployeeVehicles 690 552 138 503 365 Negotiation Rana Abdus ExternalVehicles 885 708 177 525 348 Negotiation Syed Waqar Hyder Naqvi EmployeeVehicles 885 708 177 540 363 Negotiation Burhan Zahid EmployeeVehicles 1,354 1,017 337 1,000 663 Negotiation Ali Haider EmployeeVehicles 885 698 187 565 378 Negotiation Majid Ayub EmployeeVehicles 885 698 187 525 338 Negotiation Asad Ali Jaffery EmployeeVehicles 707 540 167 410 243 Negotiation Mohammad Aleem EmployeeVehicles 707 549 158 500 342 Negotiation Faizan Masood EmployeeVehicles 925 719 206 600 394 Negotiation Khurram Qayyum EmployeeVehicles 925 719 206 625 419 Negotiation Asif Hamid ExternalVehicles 1,056 821 235 800 565 Negotiation Zahid Khan EmployeeVehicles 732 569 163 360 197 Negotiation Shamsuddin Shaikh EmployeeVehicles 732 569 163 475 312 Negotiation Samina Rafi EmployeeVehicles 1,156 898 258 750 492 Negotiation Mustansar Butt EmployeeVehicles 1,608 1,227 381 1,100 719 Negotiation Khurram Rasheed Khan EmployeeVehicles 562 429 133 350 217 Negotiation Nadeem Sultan ExternalVehicles 562 429 133 350 217 Negotiation Mastoi EmployeeVehicles 562 429 133 360 227 Negotiation Syed Muhammad Wasif Umar EmployeeVehicles 562 429 133 350 217 Negotiation Ali Asghar EmployeeVehicles 1,478 1,128 350 1,050 700 Negotiation Zafarullah EmployeeVehicles 965 723 242 630 388 Negotiation Khawar Mehmood EmployeeVehicles 1,447 1,084 363 1,000 637 Negotiation Abdul Jabbar EmployeeVehicles 607 455 152 350 198 Negotiation Karan Kumar EmployeeVehicles 1,131 847 284 770 486 Negotiation Abdul Hameed ExternalVehicles 1,131 847 284 725 441 Negotiation Naveed Akhtar EmployeeVehicles 1,673 1,253 420 1,150 730 Negotiation Jagdeesh EmployeeVehicles 652 470 182 425 243 Negotiation Shoaib Akhter Ali EmployeeVehicles 1,768 1,218 550 1,160 610 Negotiation Adeel Ishaque EmployeeVehicles 652 449 203 500 297 Insurance Claim EFU General Insurance Insurance ClaimVehicles 652 470 182 400 218 Negotiation Farukh Khan Ghauri EmployeeVehicles 652 470 182 425 243 Negotiation Aqeel Sanji EmployeeVehicles 652 470 182 425 243 Negotiation Sarosh Shamim Employee

OriginalCost

AccumulatedDepreciation

BookValue

SaleProceeds

Gain / (Loss)on Sale

Mode ofDisposal

Particulars ofBuyer



130

Vehicles 652 470 182 400 218 Negotiation Ahsan Javaid EmployeeVehicles 1,010 729 281 650 369 Negotiation Waqas Khan ExternalVehicles 1,010 711 299 580 281 Negotiation Qamar Abbas ExternalVehicles 652 459 193 425 232 Negotiation Mumtaz Ali Khosa EmployeeVehicles 1,005 708 297 690 393 Negotiation Bilal Sarwar EmployeeVehicles 1,507 1,061 446 1,100 654 Negotiation Tanveer Ahmed Khan EmployeeVehicles 1,010 711 299 650 351 Negotiation Madiha Ghulam EmployeeVehicles 1,171 824 347 850 503 Negotiation Sajjad Ali Sheikh EmployeeVehicles 2,102 1,443 659 1,500 841 Negotiation Adnan Manzoor EmployeeVehicles 652 448 204 400 196 Negotiation Sajid Mahmood EmployeeVehicles 652 459 193 400 207 Negotiation Rizwan Sadiq EmployeeVehicles 1,010 711 299 675 376 Negotiation Fahad Amjad ExternalVehicles 652 436 216 425 209 Negotiation Mian M. Afzal EmployeeVehicles 1,702 1,168 534 1,250 716 Negotiation Zeeshan EmployeeVehicles 656 451 205 380 175 Negotiation Arslan Lateef EmployeeVehicles 1,184 813 371 825 454 Negotiation M. Kashif Khan EmployeeVehicles 656 451 205 400 195 Negotiation Shahzad Ahmed EmployeeVehicles 1,019 700 319 650 331 Negotiation M Amir EmployeeVehicles 668 447 221 360 139 Negotiation Shahzadomal EmployeeVehicles 1,703 1,110 593 1,350 757 Negotiation Tahir Sultan EmployeeVehicles 683 445 238 450 212 Negotiation Khizar Abbas EmployeeVehicles 683 431 252 475 223 Negotiation Abid Ali EmployeeVehicles 683 445 238 430 192 Negotiation Nadeen Sultan ExternalVehicles 683 445 238 475 237 Negotiation Muhammad Imran EmployeeVehicles 1,302 849 453 700 247 Negotiation Attaullah Sheikh EmployeeVehicles 1,221 796 425 900 475 Negotiation Muhammad Shahzad EmployeeVehicles 1,221 796 425 900 475 Negotiation Imran Razzaq EmployeeVehicles 1,044 658 386 700 314 Negotiation Mujeeb Ur Rehman EmployeeVehicles 2,156 1,312 844 1,600 756 Negotiation Faisal Tahir EmployeeVehicles 678 427 251 460 209 Negotiation Ghulam Abu EmployeeVehicles 678 427 251 440 189 Negotiation Abdul Ali EmployeeVehicles 678 427 251 450 199 Negotiation Zahid Pasha EmployeeVehicles 1,039 655 384 700 316 Negotiation Ehsan Hyder EmployeeVehicles 678 427 251 475 224 Negotiation Muhammad Ishfaq EmployeeVehicles 1,039 655 384 740 356 Negotiation Asad Hadi EmployeeVehicles 1,332 752 580 950 370 Negotiation Mian Kashif Naseer EmployeeVehicles 688 371 317 540 223 Negotiation Sumera Falak EmployeeVehicles 1,622 872 750 1,350 600 Negotiation Qazafi Khan EmployeeVehicles 1,622 872 750 1,400 650 Negotiation Ali Raza EmployeeVehicles 1,271 649 622 985 363 Negotiation Shahid Lazir EmployeeVehicles 1,552 792 760 1,350 590 Negotiation Azmi Mufti EmployeeVehicles 688 351 337 515 178 Negotiation Mehmood Butt EmployeeVehicles 1,054 508 546 832 286 Negotiation Yousuf Javed EmployeeVehicles 1,824 931 893 1,500 607 Negotiation Dr. Noreen Tahir ExternalVehicles 1,347 568 779 1,050 271 Negotiation Asim Khan EmployeeVehicles 1,566 661 905 1,425 520 Negotiation Rashib Sheikh EmployeeVehicles 1,566 661 905 1,450 545 Negotiation Aamer Manzoori Farid EmployeeVehicles 1,347 568 779 1,050 271 Negotiation Aulim Solangi EmployeeVehicles 652 470 182 400 218 Negotiation Sajid Mahmood Employee

OriginalCost

AccumulatedDepreciation

BookValue

SaleProceeds

Gain / (Loss)on Sale

Mode ofDisposal

Particulars ofBuyer

Assets having Written down value less

than Rs.50 000

Office equipment 430 281 149 74 ( 75 ) VariousComputer 640 584 56 40 ( 16 ) Various

2018 105 926 74 022 31 904 71 894 39 990

2017 35 083 24 818 10 265 21 008 10 743


131

7.1 Fully amortised intangible assets

Intangible assets 25 237 1 965 8 412 8 412 6 448 25 237 –

Cost

Depreci-ation2015

Depreci-ation2016

Depreci-ation2017

Depreci-ation2018

TotalDepreciation

BookvalueType

7. INTANGIBLE ASSETS (Rupees ‘000)

Computer software 78 019 29 695 – 107 714 66 390 14 286 – 80 676 27 038 33



As at31 Dec2018

As at01 Jan2018

Chargefor the

yearOn

Disposal

As at31 Dec2018


DepreciationRate

%

31 December 2018

Computer software 76 276 1 742 – 78 018 54 631 11 759 – 66 390 11 628 33



As at31 Dec2017

As at01 Jan2017

Chargefor the

yearOn

Disposal

As at31 Dec2017


DepreciationRate

%

31 December 2017

8. INVESTMENT IN EQUITY SECURITIES (Rupees ‘000)

31 December2018

31 December2017

(Restated)Note

Available for Sale 8.1 334 244 370 412At fair value through profit or loss 8.2 33 208 468 27 465 952

33 542 712 27 836 364

(Rupees in ‘000)

Related PartiesListed Shares 334 522 ( 286 748 ) 47 774 306 470 ( 249 548 ) 56 922

OthersListed Shares 168 162 – 168 162 209 800 ( 27 543 ) 182 257Unlisted Shares 8.3 & 8.4 16 008 – 16 008 11 008 – 11 008

Surplus on revaluation – – 102 300 – – 120 225

8.1 Available for sale

CarryingValue Cost

Impairment /Provision

CarryingValue

Impairment /ProvisionCost

31 December 2018 31 December 2017 (Restated)

8.2 Fair Value through Profit and Loss

Related PartiesListed Shares 539 276 – 589 347 1 100 276 – 1 165 781

OthersListed Shares 34 961 713 – 32 619 121 26 774 500 – 26 300 171

36 019 681 ( 286 748 ) 33 542 712 28 402 054 ( 277 091 ) 27 836 364

Note



132

8.3 Listed equities include investment in EFU General Insurance Limited (the Holding Company) at carrying value of Rs.468.10 million on behalf of Policyholders (2017: Rs. 715.71 million) representing 2.34% (2017: 2.34 %) of theissued capital of the EFU General Insurance Limited.

8.4 This represents investment in ordinary shares of Security General Insurance Company Limited. The breakup valueof each ordinary share of Rs.10 is Rs 215.69 based on the latest un-audited interim financial statements availablefor the period ended June 30, 2018. The Company's holding as at the year end is 0.67% (number of shares: 457,038)[(2017: 0.67%) (number of shares: 457,038)]. The Chief Executive Officer of Security General Insurance CompanyLimited is Mr. Farrukh Aleem.

8.5 This represents investment in ordinary shares of Planet- N (Private) Limited. The breakup value of each ordinary shareof Rs.10 is Rs 1.25 based on the latest audited financial statements available for the period ended 30 June 2018.The Company's holding as at the year end is 0.28% (number of shares: 50,191) [(2017: 0.28%) (number of shares:50,191)]. The Chief Executive Officer of PLANET-N (Private) Limited is Mr. Nadeem Hussain.

9. GOVERNMENT SECURITIES (Rupees ‘000)

31 December2018

31 December2017Note

Held to Maturity 9.1 5 122 953 3 083 004At fair value through profit or loss 9.2 47 849 913 53 371 573

52 972 866 56 454 577

(Rupees ‘000)

31 December2018

31 December2017

Reconciliation of provision for impairment

Balance at the beginning of the year 277 092 396 624

(Reversal ) / charge for impairment on available for sale investments 9 656 ( 119 532 )

Balance at the end of the year 286 748 277 092

(Rupees in ‘000)

03 Years Pakistan Investment Bond 2019 7.00% 999 447 1 000 000 999 44715 Years Pakistan Investment Bond 2019 6.45% 10 014 10 000 10 01420 Years Pakistan Investment Bond 2024 10.00% 54 258 53 700 54 25803 Months Treasury Bills 2019 7.50% 3 824 395 3 834 000 3 824 39503 Years Government Ijara 2019 5.59% 235 159 235 000 234 839

9.1 Held to Maturity

EffectiveYield

AmortisedCost

PrincipalRepayment

CarryingValue

MaturityYear

31 December 2018

03 Years Pakistan Investment Bond 2019 7.00% 9 294 470 9 275 000 9 177 61305 Years Pakistan Investment Bond 2019 7.33% 4 577 792 4 537 500 4 557 91905 Years Pakistan Investment Bond 2020 7.20% 5 048 142 4 987 500 4 870 29410 Years Pakistan Investment Bond 2019 12.59% 14 946 15 000 15 11910 Years Pakistan Investment Bond 2024 11.45% 102 145 100 000 96 95010 Years Pakistan Investment Bond 2022 11.42% 2 130 305 2 100 000 2 081 94015 Years Pakistan Investment Bond 2019 6.45% 267 541 266 400 265 49320 Years Pakistan Investment Bond 2024 10.00% 387 319 392 000 350 92003 Months Treasury Bills 2019 7.66% 26 153 400 26 134 023 26 130 45203 Years Government Ijara 2019 5.59-6.1% 174 188 175 000 175 01108 Years Pakistan Water And Power Development Authority 2021 8.31% 128 640 128 640 128 202

53 402 161 53 243 763 52 972 866

9.2 Fair Value through Profit and Loss

(Restated)


133

9.3 Market value of government securities carried at amortized cost amounted to Rs. 5,105 Million (2017: Rs 3,097million).

9.4 Government securities includes Rs.125 million (2017: Rs. 125 million) placed with the State Bank of Pakistan, inaccordance with Section 29 of the Insurance Ordinance, 2000.

(Rupees in ‘000)

Others

Fair Value through Profit and LossTerm Finance Certificates /

Corporate Sukuks 10.1 3 865 297 – 3 868 872 873 535 – 882 135

Held to MaturityCertificate of Investment 10.2 210 000 – 210 000 210 000 – 210 000

4 075 297 – 4 078 872 1 083 535 – 1 092 135

10. INVESTMENT IN DEBT SECURITIES

CarryingValue Cost


CarryingValue


31 December 2018 31 December 2017

Note

(Rupees in ‘000)

OthersHascol Petroleum 30 000 30 000 4 99 499 131 340Fatima Fertilizer Company 9 807 9 807 3 29 677 40 307Engro Fertilizers Limited 52 000 52 000 2 91 000 186 375Bank AL Habib Limited 60 000 20 000 5 300 289 200 000Al Baraka Bank 10 000 10 000 2 22 189 28 560Byco Oil Pakistan 20 000 20 000 5 100 000 100 000K Electric 7 500 7 500 1 78 361 78 360Bank Al-Falah Limited 23 063 3 063 5 115 131 15 559MCB Bank Limited 20 000 20 000 5 101 592 101 634International brands 100 000 – 100 99 182 –Dawood Hercules 2 000 – 200 200 000 –Pakistan Services Limited 833 – 100 131 958 –Pak. Electron Limited 20 000 – 10 99 994 –United Bank Limited 250 000 – 5 1 250 000 –Soneri Bank Limited 10 000 – 5 50 000 –Askari Bank Limited 500 – 1 000 500 000 –Dubai Islamic Bank Limited 20 000 – 5 100 000 –Meezan Bank Limited 100 000 – 5 500 000 –

3 868 872 882 135

10.1 Term Finance Certificates / Corporate Sukuks

31 Dec2017

FaceValue

31 Dec2018

31 Dec2017

31 Dec2018

No. of Certificates Value of Certificates

10.2 Certificate of Investment

First Habib Modarba 1 1 210 000 210 000 210 000

4 078 872 1 092 135



134

11.1 These have tenure of one to three months (2017: one to three month) and carry mark-up at the rate 7.5% to 12% (2017: 5% to 8%) per annum and includes term deposit receipts of Rs. 5.15 billion ( 2017: Rs. 2.15 billion) heldwith JS Bank Limited (a related party) which carries mark-up at the rate 10 to 11 % (2017: 6.20%).

11. INVESTMENTS IN TERM DEPOSITS (Rupees ‘000)

31 December2018

31 December2017Note

Deposit maturing within 12 months 11.1 15 049 100 12 439 000

(Rupees in ‘000)

Related PartyMutual Funds 444 – 805 547 – 1 041

OthersMutual Funds 59 215 – 60 315 49 936 – 59 924

Available for Sale

Related PartiesMutual Funds 25 523 – 25 523 523 – 523

OthersMutual Funds 100 147 ( 10 280 ) 89 867 69 691 ( 5 509 ) 64 182

Surplus on revaluation – – 577 – – 11 376 185 329 ( 10 280 ) 177 087 120 697 ( 5 509 ) 137 046

12. INVESTMENT IN MUTUAL FUNDS

CarryingValue Cost


CarryingValue


31 December 2018 31 December 2017 (Restated)

Fair Value through Profit and Loss

(Rupees ‘000)

31 December2018

31 December2017

(Restated)

Reconciliation of provision for impairment

Balance at the beginning of the year 5 509 6 277(Reversal ) / charge for impairment on available for sale investments 4 771 ( 768 )Balance at the end of the year 10 280 5 509

Note

13. INSURANCE & REINSURANCE / RETAKAFUL RECEIVABLES

Due from insurance Policyholders holders 156 138 98 389Due from reinsurers / retakaful 13 462 126 442

169 600 224 831

14. OTHER LOANS AND RECEIVABLES

Accrued investment income 884 760 1 142 548Security deposits 35 329 42 356Advance to supplier 108 610 100 078Loans to agents 14.1 32 453 22 256Loans to employees 14.1 136 737 105 386Other receivables 1 912 549 1 359 285

3 110 438 2 771 909


135

14.1 This represent housing, vehicle and domestic purpose loans to employees and agents at the interest rate rangingbetween 8% to 12.5% (2017: 8% to 12.5%) per annum. These loans are recoverable over a period of one to tenyears (2017: one to ten years) and are secured against retirement benefit payable to respective employees andsecurity documents of property / vehicle.

(Rupees ‘000)

31 December2018

31 December2017Note

– Fixed Assets 152 900 135 800– Surplus on revaluation of available for sale investment 32 778 39 480– Retained earning ledger Account D 518 755 578 798

704 433 754 078

16. PREPAYMENTS

Prepaid rent 56 435 22 967Prepaid miscellaneous expenses 24 747 21 525

81 182 44 492

17. CASH & BANK

Cash and Cash EquivalentCash in hand 299 –Policy & Revenue stamps 5 660 7 472

Cash at bankCurrent account 1 231 704 2 552 729Saving account 17.1 3 548 699 3 497 712

4 786 362 6 057 913

15. DEFERRED TAXATION

Deferred credits arising in respect of the following:

17.1 These carry mark-up ranging from 7.5% to 9% (2017: 4.5% to 6%) per annum and include balance of Rs.364.36million (2017: Rs. 184.59 million) held with JS Bank Limited (a related party).

(Rupees ‘000)

31 December2018

31 December2017Note

– Cash and others 5 959 7 472– Cash at bank 4 780 403 6 050 441– Term deposits maturing within three months 15 049 100 12 439 000

19 835 462 18 496 913

17.2 Cash and cash equivalents for cash flow purpose comprise of the following:

(Restated)



136

18. SHARE CAPITAL

Authorised Share Capital

2018 2017

(Number of Shares)

150 000 000 150 000 000 1 500 000 1 500 000

Issued, subscribed and paid-up capital

2018 2017

(Number of Shares)

15 000 000 15 000 000 150 000 150 000

85 000 000 85 000 000 850 000 850 000

100 000 000 100 000 000 1 000 000 1 000 000

(Rupees ‘000)

Ordinary shares of Rs 10 each

Issued, subscribed and paid-up

Ordinary shares of Rs 10 each issued for cash

Ordinary shares of Rs 10 each issued as fullypaid bonus shares

18.1 As of balance sheet date 43,416,840 (2017: 43,092,040) ordinary shares of Rs. 10/- each were held by the HoldingCompany.

18.2 Employees Stock Option Scheme

The Company's Employees Stock Option Scheme (ESOS) was duly approved by the Company's Shareholders in theirAnnual General Meeting held on 5 April 2014. Under the ESOS, the Company shall grant share options to theemployees selected by the Board's Compensation Committee. The SECP has accordingly approved the ESOS videits Letter No.SMD/CIW/ESOS/01/2014 dated: 10 February 2017.The scheme is applicable from the year 2018. Nooptions were granted to employees as at 31 December 2018.

(Rupees ‘000)

31 December2018

31 December2017Note

18.3. Retained Earning ledger account D

Opening balance 2 108 700 1 905 124Contribution to increase solvency margin 12 809 90 116Change in solvency margin through profit and loss account 145 696 113 460

2 267 205 2 108 700

Related Deferred Tax Liability on:Opening balance ( 578 798 ) ( 562 919 )Reversal / (charge) to profit and loss account 60 042 ( 15 879 )

Closing balance ( 518 756 ) ( 578 798 )

Net of tax 1 748 449 1 529 902

19. RESERVES

General reserve 2 150 000 1 900 000

31 December2018

31 December2017

31 December2018

31 December2017

(Restated)


137

(Rupees ‘000)

31 December2018

31 December2017Note

20. INSURANCE LIABLITIES

Reported outstanding claims 20.1 2 281 165 2 105 117Incurred but not reported claims 20.2 515 733 362 228Investment component of unit - linked and account value policies 20.3 103 569 024 97 073 403Liabilities under individual conventional insurance contracts 20.4 784 354 821 042Liabilities under group insurance contracts (other than investment linked) 20.5 453 261 498 597

107 603 537 100 860 387

20.1 Reported Outstanding Claims

Gross of ReinsurancePayable within one year 1 918 000 1 752 232Payable over a period of time exceeding one year 646 563 655 030

2 564 563 2 407 262Recoverable from ReinsurersReceivable over a period of time exceeding one year ( 283 398 ) ( 302 145 )

( 283 398 ) ( 302 145 )

Net Reported Outstanding Claims 2 281 165 2 105 117

20.2 Incurred But Not Reported Claims

Gross of Reinsurance 634 042 465 603Reinsurance Recoveries ( 118 309 ) (103 375)

Net of Reinsurance 515 733 362 228

20.3 Investment Component of Unit - Linked and Account Value Policies

Investment Component of Unit Linked Policies 103 569 024 97 073 403103 569 024 97 073 403

20.4 Liabilities under Individual Conventional Insurance Contracts

Gross of Reinsurance 952 718 977 253Reinsurance Credit ( 168 364 ) ( 156 211 )


20.5 Liabilities under Group Insurance Contracts (other than investment linked)

Gross of Reinsurance 532 584 618 117Reinsurance Credit ( 79 323 ) ( 119 520 )




138

20.8 Statement of Age wise Break up of Unclaimed Insurance Benefits As on 31 December 2018

This represents outstanding claims in respect of which cheques have been issued by the Company for claim settlement.However, the same have not been encashed by the claimant. Following is the aging as required by the SECP Circularno.11 of 2014 dated 19 May 2014.

20.7 Claim Development Individual Business

The claim development pattern for the last five years:

Accident Year 2014 2015 2016 2017 2018

Estimate of ultimate claims costs:

At accident year 562 879 699 248 824 705 611 981 668 646One year later 573 147 715 002 842 299 605 581 –Two years later 563 080 717 658 839 187 – –Three years later 562 095 712 285 – – –Four years later 560 487 – – – –

Current estimate of Cumulative claims 560 487 712 285 839 187 605 581 668 646

Less: Cumulative payments to date 433 558 573 318 710 742 424 653 228 438

Liability recognised in the statement of financial position 126 929 138 967 128 445 180 928 440 208

20.6 Claim Development Group Business

The claim development pattern for the last five years:

Estimate of ultimate claims costs:

At accident year 1 117 967 1 130 170 1 616 251 1 823 809 2 194 987One year later 1 134 084 1 291 178 1 716 076 1 866 091 –Two years later 1 145 461 1 299 436 1 740 491 – –Three years later 1 142 527 1 323 341 – – –Four year later 1 225 974 – – – –

Current estimate of Cumulative claims 1 225 974 1 323 341 1 740 491 1 866 091 2 194 987

Less: Cumulative payments to date 1 121 658 1 268 432 1 657 043 1 645 563 1 242 855

Liability recognised in the statement of financial position 104 316 54 909 83 448 220 528 952 132

Accident Year 2014 2015 2016 2017 2018

(Rupees ‘000)

Unclaimed Maturity Benefits 149 645 93 268 46 198 6 706 1 349 2 124Unclaimed Death Benefits – – – – – –Unclaimed Disability Benefits – – – – – –Claims not encashed 8 739 – 1 634 686 – 6 419Other Unclaimed benefits – – – – – –

Total 158 384 93 268 47 832 7 392 1 349 8 543

ParticularsTotal

Amount1 to 6

months7 to 12months

13 to 24months

25 to 35months

Beyond 36months


139

21. INSURANCE & REINSURANCE / RETAKAFUL PAYABLES(Rupees ‘000)

31 December2018

31 December2017

Due to reinsurers / retakaful 193 218 78 865

193 218 78 865

22. OTHER CREDITORS AND ACCRUALS

Amount due to agents 726 258 633 979

Accrued expenses 602 191 403 223

Unpaid Dividend 8 570 –

Unclaimed Dividend 33 326 27 469

Other creditors and accruals 151 063 168 189

1 521 408 1 232 860

23. RETIREMENT BENEFIT OBLIGATIONS

23.1 Provident Fund

The following information based on un - audited financial statements of the fund as at 31 December 2018:

23.1.1 The breakup of fair value of investment in Provident Fund is as follows:

(Rupees in ‘000)

2018 % 2017 %

Size of the fund - total assets 468 383 415 217

Cost of investments 412 738 88.12 349 548 84.18

Fair value of investments 464 256 99.12 412 648 99.38

The above investments out of provident fund have been made in accordance with the requirement of Section 218 ofthe Companies Act. 2017 and the rules formulated for this purpose.

(Rupees in ‘000)

2018 % 2017 %

Open end mutual fund 117 910 25.40 126 677 30.70

Shares 779 0.17 923 0.22

Government securities 345 567 74.43 285 048 69.08

(Rupees in ‘000)

2018 % 2017 %

Size of the fund - total assets 305 708 295 622

Cost of investments 277 773 90.86 257 597 87.14

Fair value of investments 302 562 98.97 288 869 97.72

23.2 Pension Fund

23.2.1 The breakup of fair value of investment in Pension Fund is as follows:(Rupees in ‘000)

2018 % 2017 %

Open end mutual fund 65 178 21.54 70 361 24.36

Shares 263 0.09 305 0.11

Government securities 235 900 77.97 216 980 75.11

Term Finance Certificates 1 222 0.40 1 223 0.42

31 December2018

31 December2017



140

24. CONTINGENCIES AND COMMITMENTS

24.1 The Income tax assessment of the Company for tax year 2018 has been finalized. The tax department has reopened the

assessment order issued under Sec 122(5A) for the tax year 2009-2016 and has raised a demand of Rs. 56.31 million against

dividend income so received by the Company to be taxed at corporate rate instead of reduced rates available in the First

schedule of Income Tax Ordinance 2001. The Company filed an appeal for tax year 2009-2013 before CIT appeals where

the case was decided against the Company. The Company has filed an appeal before Appellate Tribunal for the same tax

years where the case was decided in favour of the Company. For tax year 2014 and tax year 2016, the Company filed an

appeal before CIT appeals against the order, where the case was decided in favour of the Company. For the tax year 2015,

the Company has filed an appeal before CIT appeal. No provision has been made in respect of aforementioned additional

demand.

In 2015 and 2016, The Searle Company Limited issued bonus shares (76,031 shares and 342,480 shares respectively) after

withholding 5 percent of bonus shares (3,801.55 shares and 18,707.44 shares respectively) and the IBL Healthcare Limited.

issued bonus shares (46,625 shares and 80,311 shares respectively) after withholding 5 percent of bonus shares (2,331.26

shares and 4,031 shares respectively). In this regard, a constitutional petition had been filed by the Company in Sindh High

Court challenging the applicability of withholding tax provision on bonus shares received by the Company. The honorable

high court decided the case against the Company. Subsequently, the Company filed an appeal with a larger bench of the

Sindh High Court and in response the Sindh High Court has suspended the earlier judgment until the next date of hearing,

which has not yet been decided. The Company is of the view that the case will be decided in its favour and no provision has

been made for the aforementioned tax.

Sindh Revenue Board has been granting exemption for sales tax on life insurance premium on a year to year basis which had

expired on 30 June 2018. Similarly, sales tax on life insurance premium was also exempt in Punjab. However, sales tax on

life insurance premium on policies written in Punjab has been made applicable from November 2018. Further, Balochistan

Revenue Authority has also imposed sales tax on life insurance premium effective 01 July 2015. The matter for the renewal

of the exemption was taken up at the collective level by the Insurance Association of Pakistan (IAP) with the sales tax authorities

of the respective provinces. In view of the fact that the matter is under the process of review with the taxation authorities,

the Company has not started billing sales tax on life insurance premium to its customers. At 31 December 2018, the aggregate

amount of sales tax on life insurance premium not yet billed by the Company to its customers amounted to Rs. 1,315.33

million. Based on the IAP’s discussions with the sales tax authorities, the Company is hopeful ‘that the exemption will be

granted for the current year. Accordingly, the Company has not recorded any provision against sales tax liability in these

financial statements.

24.2 Bank guarantees amounting to Rs.17.27 million has been given in respect of Group Life coverage. These bank guarantees

will expire by 16 January 2020.


141

31 December2018

31 December2017

25. NET INSURANCE PREMIUM / CONTRIBUTION REVENUE

Gross premium / contribution

Regular premium / contribution individual policiesFirst year 6 845 943 5 340 075Second year renewal 4 267 430 3 243 216Subsequent year renewal 14 067 312 11 810 042

Single premium / contribution individual policies 2 588 947 8 263 773

Group policies with cash values 61 538 55 922Group policies without cash values 3 125 315 2 786 431Less: Experience Refund ( 166 078 ) ( 78 624 )

Total gross premium / contribution 30 790 407 31 420 835

Less: Reinsurance premium / retakafulcontribution ceded

On individual life first year business 50 966 52 207On individual life second year business 39 947 50 197On individual life renewal business 199 403 186 174On group policies 469 073 451 151Less: Experience refund from reinsurers ( 113 106 ) ( 112 051 )Less: Reinsurance commission on risk premium ( 20 144 ) ( 19 976 )

Total reinsurance premium / retakafulcontribution ceded 626 139 607 702

Net premium / contribution 30 164 268 30 813 133

(Rupees ‘000)

31 December2018

(Restated)

31 December2017

26. INVESTMENT INCOME

Income from equity securities

Fair Value through Profit and LossDividend income 1 460 907 1 556 579

Available for saleDividend income 22 848 134 008

Income from debt securities

Fair Value through Profit and LossReturn on debt securities 524 761 297 468On government securities 3 888 358 3 631 010

Held to MaturityOn government securities 320 128 214 013

Income from term deposits

Return on term deposits 725 389 578 046

6 942 391 6 411 124



142

31 December2018

(Restated)

31 December2017

27. NET REALISED FAIR VALUE GAINS (LOSSES) ON FINANCIAL ASSETS

Financial assetsRealised gains on:- Equity securities 2 235 330 4 933 487- Government securities – –

Realised losses on:- Equity securities ( 5 971 322 ) ( 1 939 978 )- Government securities ( 3 402 ) –

( 3 739 394 ) 2 993 509

28. NET FAIR VALUE GAINS (LOSSES) ON FINANCIALASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

Net unrealised losses on investments in financial assets ( 1 174 039 ) ( 665 036 )Net unrealised losses on investments at fair value through profit or loss ( 1 889 638 ) ( 12 548 123 )

Total investment income ( 3 063 677 ) ( 13 213 159 )

Exchange Gain 26 908 6 084

Less: Impairment in value of available for sale ( 14 427 ) 120 300Less: Investment related expenses ( 7 101 ) ( 7 509 )

( 3 058 297 ) ( 13 094 284 )

29. OTHER INCOME

Gain on sale of fixed assets 39 990 10 743Return on loans to employees 14 137 12 961Fees charged to Policyholders 9 150 9 860

63 277 33 564

30. NET INSURANCE BENEFITS

Gross claims

Claims under individual policiesby death 602 244 676 329by insured event other than death 4 360 7 720by maturity 1 289 748 869 376by surrender 9 577 998 11 390 496

Total gross individual policy claims 11 474 350 12 943 921

Claims under group policiesby death 1 997 744 1 757 739by insured event other than death 102 957 120 554by maturity 114 –by surrender 14 601 6 458

Total gross group claims 2 115 416 1 884 751

Total gross claims 13 589 766 14 828 672

Less: Reinsurance / retakaful recoveriesOn individual life claims 106 753 107 858On group claims 397 298 491 774

Total reinsurance / retakaful recoveries 504 051 599 632

Add: Claims related expenses 8 736 8 894

Net insurance benefit expense 13 094 451 14 237 934

(Rupees ‘000)

31 December2018

(Restated)

31 December2017


143

31. ACQUISITION EXPENSES

Remuneration to insurance intermediaries on individual policies: - commission to agent on first year premiums 2 847 314 2 224 927 - commission to agent on second year premiums 451 418 329 472 - commission to agent on subsequent renewal premiums 386 606 308 897 - commission to agent on single premiums 76 816 290 824 - override commission to supervisors 546 778 448 816

Other benefits to insurance intermediaries - salaries allowances and other benefits 1 335 376 922 248

Remuneration to insurance intermediaries on group policies: - commission 385 240 301 023 - other benefits to insurance intermediaries 73 452 70 935 - Travelling expenses (including cost of contests conventions etc.) 45 382 38 671 - Printing and stationery 17 267 21 787 - Depreciation 94 130 73 441 - Rent rates and taxes 111 322 95 862 - Electricity gas and water 35 035 31 024 - Entertainment 30 317 29 647 - Vehicle running expenses 12 310 13 441 - Office repairs & maintenance 22 441 21 468 - Postages telegrams and telephone 39 601 37 926 - Others 128 233 104 498 - Stamp duty 88 974 75 346 - Initial Medical Fee 22 967 18 223

6 750 979 5 458 476

32. MARKETING AND ADMINISTRATION EXPENSES

Employee benefit cost 32.1 634 886 567 887Travelling expenses 86 715 79 867Advertisements and sales promotion 189 438 155 383Printing and stationery 47 491 48 921Depreciation 126 176 121 103Amortisation 14 285 11 759Rent rates and taxes 15 987 18 625Legal and Professional charges - business related 82 971 58 355Electricity gas and water 31 627 33 054Entertainment 33 080 27 662Vehicle running expenses 7 157 11 502Office repair and maintenance 62 784 47 327Appointed actuary fees 11 399 10 800Bank charges 13 339 13 431Postage internet and telephone 76 079 60 452Fees and subscription 25 541 20 127Annual supervision fee SECP 50 000 50 000Miscellaneous 93 861 70 287

1 602 816 1 406 542

32.1 Employee Benefit Cost

Salaries allowances and other benefits 628 697 531 256Charges for post employment benefits 6 189 36 631

634 886 567 887

(Rupees ‘000)

31 December2018

(Restated)

31 December2017



144

33. OTHER EXPENSES

Printing and Stationary 758 3 055Advertisements and publicity 1 259 1 836Travelling 890 272Auditor's remuneration 33.1 7 755 6 909Directors' fee 2 700 3 075Donation 33.2 6 865 7 800

20 227 22 947

33.1 Auditor's remuneration

Annual Audit Fee 1 650 1 500Half yearly review 250 250Review of code of corporate governance 250 225Other certifications 4 755 4 181Out-of-pocket expenses 850 753

7 755 6 909

(Rupees ‘000)

31 December2018

31 December2017

34. TAXATION

For the yearCurrent 656 848 791 662Deferred ( 42 943 ) 20 679

613 905 812 341For the prior yearsCurrent 131 152 71 938

745 057 884 279

33.2 Donations

Donations include the following in whom the directors are interested:

Name of Directors Interest in donee Name and Address of donee

Saifuddin N.Zomkawala Board Member Sindh Institute of Urology andTransplantation, Civil Hospital Karachi 1 114 1 663

Syed Salman Rashid Spouse (Trustee) Anjuman Kashana -E- Atfal-O-Naunihal 50 –

Rafique R. Bhimjee Spouse (Trustee) The Garage School 500 –

33.3 Donations to a single party exceeding Rs.500,000

The Citizen Foundation – 908Family Educational Services Foundation 570 –Dar Ul Sukun 848 829Afzaal Memorial Thalassemia Foundation 1 000 1 000Layton Rahmatullah Benevolent Trust 1 080 1 448

31 December2018

31 December2017

31 December2018

31 December2017

(Restated)

(Restated)

31 December2018

31 December2017


31 December2018

(Restated)

31 December2017

Effective tax rate %

Tax at applicable rate 29% (2017: 30%) 29.00 30.00Tax effect of income subject to lower tax rates – –Prior year adjustment 5.64 2.57Others ( 2.61 ) ( 0.93 )

Tax charge for the year 32.03 31.64

34.1 Relationship between tax expenses and accounting profit

35. EARNINGS PER SHARE

Profit (after tax) for the year 1 581 333 1 909 962

(Rupees ‘000)

31 December2018

(Restated)

31 December2017

(Number in ‘000)

Weighted average number of ordinary shares 100 000 100 000

Earnings per share – basic and diluted 15.81 19.10

(Rupees)

Fees – 2 700 – – 3 075 –Managerial remuneration 26 693 – 403 075 24 594 – 310 220Bonus 8 722 – 38 782 7 872 – 30 158Retirement benefits 4 382 – 23 555 3 997 – 17 989Utilities 824 – 1 837 764 – 1 343Medical expenses 872 – 5 762 581 – 3 975Leave passage 585 – 115 325 – 809

42 078 2 700 473 126 38 133 3 075 364 494

Number of persons 1 8 62 1 8 51

31 December 2018 31 December 2017Chief

Executive ExecutivesDirectorsChief

Executive ExecutivesDirectors

36 REMUNERATION OF DIRECTORS, CHIEF EXECUTIVE AND EXECUTIVES

The Chief Executive is provided with Company maintained cars, furnished accommodation and medical insurance cover.The Executives are provided with Company maintained cars, Medical insurance cover and in certain cases, householditems and furniture in accordance with their terms of employment. The chairman is provided with free use of Companycar, medical insurance cover and residential utilities.

145

36.1 The Non Executive Directors were paid directors meeting fee of Rs. 2.7 million (2017: Rs. 3.075 million). No otherremuneration were paid to Non Executive Directors.


37.1 Transactions with related parties

Holding CompanyPremium written 16 479 –Premium paid 10 274 –Claims received 1 612 –Claims paid 7 764 –Dividend paid 650 881 –Dividend received 46 810 –

Associated companiesPremium written 86 076 82 072Premium paid 38 189 48 167Claims paid 19 326 19 595Claims received 208 2 290Commission paid 239 150 116 438Travelling expenses 1 739 2 604Donation paid 2 903 1 663Dividend paid 628 480 1 022 705Dividend received – 146 579Interest on bank deposit 214 373 133 353Investment sold 244 483 1 264 308

Key management personnelPremium written 2 930 2 198Loan advanced 2 000 550Loan recovered 4 897 3 003Dividend paid 10 072 10 569

Employees’ fundsContribution to provident fund 31 535 25 529(Recovery) / Contribution to pension fund ( 10 023 ) 21 116

37.2 Balances with related partiesBank balances 869 823 661 499Bank deposits 5 150 000 2 150 000Premium payable 652 21Premium receivable 1 107 1 146Investment in EFU General Insurance Limited designated to unit funds 468 096 715 719Investment in related party 172 190 508 571Claims outstanding 5 935 6 024Loan receivable key employees 23 544 26 441

(Rupees ‘000)

31 December2018

(Restated)

31 December2017

37. RELATED PARTY TRANSACTIONS

The related parties comprise of holding Company, directors, key management personnel, associated companies / associatedundertakings, and entities with common directors and retirement benefit fund. The transactions with related parties arecarried out at commercial terms and conditions except for compensation to key management personnel which are onemployment terms. The detail of transactions with related parties during the period, other than those which have beenspecifically disclosed elsewhere in the financial statements are as follows:


146


38. SEGMENTAL INFORMATION

38.1 Revenue Account by Statuary Fund

(Rupees ‘000)

Statutory Funds

Income

Premium / Contribution lessreinsurance / retakaful 24 739 353 2 341 580 941 848 2 887 629 186 791 30 157 142

Policy transfer from otherstatutory funds – – – – 7 126 – 7 126

Bonus units transfer to statutory fund – – – – 26 718 – 26 718

Net investment income / wakala income ( 310 671 ) 145 944 361 379 367 665 91 410 295 088

Total net income 24 428 682 2 487 524 1 302 1 227 3 289 138 278 201 30 486 074

Insurance Benefits and Expenditures

Claims net of reinsurance / retakafulrecoveries 10 932 970 1 633 396 394 538 441 307 69 984 13 078 589

Policy transfer to other statutory funds 7 126 – – – – – 7 126

Bonus units transfer to statutory fund – – – – 26 718 – 26 718

Management expenses 6 308 349 628 905 76 271 1 571 473 149 372 8 658 446

Total Insurance Benefits and Expenditures 17 248 445 2 262 301 470 809 2 039 498 219 356 21 770 879

Excess of income over InsuranceBenefits and Expenditures 7 180 237 225 223 832 418 1 249 640 58 845 8 715 195

Net Change in Insurance Liabilities(Other than outstanding Claims) ( 5 209 455 ) ( 118 564 ) 1 454 552 ( 1 225 699 ) ( 25 670 ) ( 6 577 382 )

Surplus / (Deficit) before tax 1 970 782 106 659 2 286 970 23 941 33 175 2 137 813

Movement in policyholders' liabilities 5 209 455 118 564 ( 1 454 ) ( 552 ) 1 225 699 25 670 6 577 382

Transfer of (surplus) to shareholders' fund ( 1 894 421 ) ( 72 810 ) ( 2 300 ) ( 1 029 ) – ( 21 557 ) ( 1 992 117 )

Capital contribution from share holders' fund – – – – 12 809 – 12 809

Net Transfer to / from shareholders' fund ( 1 894 421 ) ( 72 810 ) ( 2 300 ) ( 1 029 ) 12 809 ( 21 557 ) ( 1 979 308 )

Balance of statutory funds atbeginning of the year 97 549 001 1 270 484 25 923 2 092 2 297 278 70 077 101 214 855

Balance of statutory funds at endof the year 102 834 817 1 422 897 24 455 1 481 3 559 727 107 365 107 950 742

31 December2018

Family TakafulProtection

Business

Family TakafulInvestment

Linked Business

Accident& HealthBusiness

PensionBusiness

(Unit Linked)Conventional

Business

InvestmentLinked

Business

31 December 18Aggregate

147



148

(Rupees ‘000)

Statutory Funds

31 December2017

Family TakafulProtection

Business

Family TakafulInvestment

Link Business


PensionBusiness

(Unit Linked)Conventional

Business

InvestmentLinked

Business

31 December 17 (Restated)Aggregate

Income

Premium / Contribution lessreinsurances / retakaful 26 279 344 2 174 062 1 099 658 2 208 328 142 099 30 805 590

Policy transfer from otherstatutory funds – – – – 7 543 – 7 543

Net investment income / wakala income ( 3 818 157 ) 82 724 452 90 54 434 74 970 ( 3 605 487 )

Total net income 22 461 187 2 256 786 1 551 748 2 270 305 217 069 27 207 646

Insurance Benefits and Expenditures

Claims net of reinsurance / retakafulrecoveries 12 452 880 1 334 691 297 1 382 590 51 039 14 221 498

Policy transfer from other statutory funds 7 543 – – – – – 7 543

Management expenses 5 440 028 502 314 75 315 1 029 938 111 690 7 084 360

Total Insurance Benefits and Expenditures 17 900 451 1 837 005 372 316 1 412 528 162 729 21 313 401

Excess of income over InsuranceBenefits and Expenditures 4 560 736 419 781 1 179 432 857 777 54 340 5 894 245

Net Change in Insurance Liabilities(Other than outstanding Claims) ( 2 194 353 ) ( 112 657 ) ( 909 ) 41 ( 904 373 ) ( 24 655 ) ( 3 236 906 )

Surplus / (Deficit) before tax 2 366 383 307 124 270 473 ( 46 596 ) 29 685 2 657 339

Movement in policyholders' liabilities 2 194 353 112 657 909 ( 41 ) 904 373 24 655 3 236 906

Transfer of ( surplus ) to shareholders' fund ( 2 361 570 ) ( 177 448 ) ( 256 ) ( 610 ) – ( 3 995 ) ( 2 543 879 )

Capital contribution from share holders' fund – – – – 93 923 ( 3 807 ) 90 116

Net Transfer to / from shareholders' fund ( 2 361 570 ) ( 177 448 ) ( 256 ) ( 610 ) 93 923 ( 7 802 ) ( 2 453 763 )

Balance of statutory funds atbeginning of the year 95 349 835 1 028 151 25 000 2 270 1 345 578 23 539 97 774 373

Balance of statutory funds at endof the year 97 549 001 1 270 484 25 923 2 092 2 297 278 70 077 101 214 855

(Restated)


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Income

Gross Premiums- First Year Individual Regular Premiums 2 485 673 2 932 709 5 418 382 2 302 076 2 207 051 4 509 127- Individual Renewal Premiums 9 320 382 7 838 447 17 158 829 8 251 685 6 286 410 14 538 095- Individual Single Premiums 577 986 1 681 389 2 259 375 994 745 6 375 965 7 370 710Total Gross Premiums 12 384 041 12 452 545 24 836 586 11 548 506 14 869 426 26 417 932

Reinsurance Premiums

- Individual 119 178 32 007 151 185 155 910 31 251 187 161Total Reinsurance Premiums 119 178 32 007 151 185 155 910 31 251 187 161

Net Premium Revenues 12 264 863 12 420 538 24 685 401 11 392 596 14 838 175 26 230 771

Net Investment Income ( 174 180 ) ( 135 751 ) ( 309 931 ) ( 2 103 959 ) ( 1 713 655 ) ( 3 817 614 )( 174 180 ) ( 135 751 ) ( 309 931 ) ( 2 103 959 ) ( 1 713 655 ) ( 3 817 614 )

Total Net Income 12 090 683 12 284 787 24 375 470 9 288 637 13 124 520 22 413 157

Insurance benefits and Expenditures

Insurance benefits including bonusesnet of reinsurance 5 060 081 5 859 083 10 919 164 5 016 294 7 429 637 12 445 931Policy Transfers to Other Stautory Funds 7 126 – 7 126 7 543 – 7 543Management Expenses less Recoveries 3 310 550 2 994 301 6 304 851 2 941 378 2 494 729 5 436 107

Total Insurance benefits and Expenditures 8 377 757 8 853 384 17 231 141 7 965 215 9 924 366 17 889 581

Excess of Income over Insurancebenefits and Expenditure 3 712 926 3 431 403 7 144 329 1 323 422 3 200 154 4 523 576

Add: Policyholder Liabilitiesat Beginning of Year 57 593 735 38 495 720 96 089 455 57 577 536 36 317 029 93 894 565

Less: Policyholder Liabilitiesat End of Year 60 243 382 41 054 078 101 297 460 57 593 735 38 495 720 96 089 455

Surplus / ( Deficit ) Before Tax 1 063 279 873 045 1 936 324 1 307 223 1 021 463 2 328 686

Conventional Conventional

Individual LifeDirect sales

force

Total2018

Individual LifeBancassurance

Individual LifeDirect sales

force

Total2017

Individual LifeBancassurance

38.2 Segmental Results By Line Of BusinessStatutory Funds Statutory Funds


Property and equipment 1 317 467 1 114 160 2 431 627 1 364 951 832 263 2 197 214Intangible assets – 27 038 27 038 – 11 628 11 628Investments 103 402 211 2 418 426 105 820 637 96 312 046 1 647 076 97 959 122Insurance & Reinsurance / Retakaful

receivables 169 600 – 169 600 224 831 – 224 831Other loans and receivables 2 928 578 181 860 3 110 438 1 908 493 863 416 2 771 909Taxation - payments less provision 934 336 793 337 727 – 278 075 278 075Prepayments 81 182 – 81 182 44 492 – 44 492Cash & Bank 4 768 942 17 420 4 786 362 5 833 057 224 856 6 057 913

Total Assets 112 668 914 4 095 697 116 764 611 105 687 870 3 857 314 109 545 184

Insurance liabilities net of reinsurance /retakaful recoveries 107 603 537 – 107 603 537 100 860 387 – 100 860 387

Deferred taxation – 704 433 704 433 – 754 078 754 078Premium / Contribution received

in advance 714 419 – 714 419 656 323 – 656 323Insurance & Reinsurance / Retakaful

payables 193 218 – 193 218 78 865 – 78 865Other creditors and accruals 1 458 118 63 290 1 521 408 1 187 636 45 224 1 232 860

Total Liabilities 109 969 292 767 723 110 737 015 102 783 211 799 302 103 582 513

As at 31 December 2018 As at 31 December 2017 (Restated)

StatutoryFunds Total

ShareholdersFunds

StatutoryFunds Total

ShareholdersFunds

38.3 Segment statement of financial position

39. MOVEMENT IN INVESTMENTS (Rupees ‘000)

Held tomaturity

Fair valuethrough profit& loss account

Available forSale

Depositmaturingwithin 12months Total

At beginning of previous year (Restated) 3 369 231 1 949 926 84 359 786 9 358 100 99 037 043

Additions 5 296 292 464 197 138 377 113 49 564 000 193 701 602

Disposals (sale and redemptions) ( 5 584 100 ) ( 1 372 242 ) ( 127 531 064 ) ( 46 483 100 ) ( 180 970 506 )

Fair value net gains(excluding net realised gains) – ( 716 159 ) ( 13 213 158 ) – ( 13 929 317 )

Impairment losses – 120 300 – – 120 300

At beginning of current year (Restated) 3 081 423 446 022 81 992 677 12 439 000 97 959 122

Additions 13 577 932 53 016 186 291 653 97 052 200 296 974 801

Disposals (sale and redemptions) ( 12 918 657 ) ( 14 707 ) ( 178 636 608 ) ( 94 442 100 ) ( 286 012 072 )

Fair value net gains(excluding net realised gain ) – ( 23 110 ) ( 3 063 677 ) – ( 3 086 787 )

Impairment losses – ( 14 427 ) – – ( 14 427 )

At end of current year 3 740 698 446 794 86 584 045 15 049 100 105 820 637

40. MANAGEMENT OF INSURANCE RISK AND FINANCIAL RISK

40.1 INSURANCE RISK

40.1.1 Insurance Contracts and Takaful Contracts

40.1.1.1 Classification

The Company currently issues contracts that are classified as insurance and takaful contracts as they transfer significantinsurance risk (against death, disability and sickness) from the policyholder to the Company. In the past the Companyhas issued contracts where the insurance risk transferred is insignificant, these therefore being classified as investmentcontracts. All contracts which include an investment element being unit - linked contracts linked to internal mutual funds.


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151

(b) Conventional Protection Products:

Two types of products are offered under Individual life conventional business, these being medium to long term contractswith level premiums being paid over the policy period. The Company offers a standard term life assurance product thatoffers protection in event of death as well as a decreasing term life assurance policy that covers outstanding loan balances.

Policyholder liabilities for both products are determined on a net premium basis by determining the present value ofbenefits less the present value of future net premiums, a theoretical net premium being calculated using conservativeassumptions for mortality and the discount rate.

(c) Family Takaful Investment linked Products:

These are medium to long term unit - linked plans operated through Window Takaful Operations of EFU Life Assurance.

The Member liabilities are divided into two broad categories, unit reserves and non - unit reserves. The unit reservecomprises of the total units allocated to the Membership in the Participants’ Investment Fund (PIF). The value of theseunits, at the bid price prevailing on the valuation date, forms the unit reserve. The non - unit reserve is the actuarial reservein the Participants’ Takaful Fund (PTF). The net non - unit reserve is calculated as the unearned mortality reserve whichis calculated as the unexpired portion of the net mortality charges (Net of Wakala Fee and Retakaful Contribution)deposited into the PTF. The gross non - unit reserve is calculated as the net reserve plus the unearned retakaful contributionpaid.

(d) Accident and Health Products:

These consist of long term and short term Accident and Health products providing cover against accidental death, disability,sickness and critical illness, offered both as long term as well as yearly renewable plans.

Policyholder Liabilities for short term contracts are evaluated using the unearned premium reserve method, taking intoaccount the unexpired future period of risk, with a premium deficiency reserve being provided for where the Company’smanagement perceives that the premium being charged is not adequate. For the critical illness long term contracts,liabilities are evaluated using a net premium method i.e. expected present value of benefits payable less expected presentvalue of net premiums receivable.

(e) Other Supplementary Benefits:

The Company also offers a variety of supplementary benefits attached with main plans including additional term lifeassurance, income benefits, critical illness, sickness and accidental death and disability related benefits.

The Company classifies its business into Individual Life and Group Life businesses, in both cases the form of contractconsisting of main plans and supplementary riders (which are generally optional).

Individual life business mainly consists of unit - linked products and conventional protection products, in both cases withoptional supplementary riders which generally provide protection only. Group Life business consists primarily of protectionproducts and a relatively small number of unit - linked policies.

40.1.1.2 Contract details and measurement

The insurance contracts offered by the Company are described below.

40.1.1.2 Individual Life Policies

These consist of the following types of policies:

(a) Unit - Linked Products:

These are medium to long term unit - linked plans designed to address a variety of future policyholder needs, such asretirement planning, education planning for children, marriage planning for children, life protection and investments andsavings for future. Premiums received from policyholders and after deduction of specified charges including risk charges,are invested in internal unit funds of the Company. The basic plan contains life cover over and above the unit value, withadditional protection (for death, disability and sickness) being provided through the addition of optional riders.

Policyholder Liabilities for these plans (excluding attached riders) are measured as the sum of the fair value of unitsattached and the unearned part of any risk premiums charged.



152

The methods used to determine policy holder liabilities differ with the nature and terms of these benefits. Mostsupplementary benefits related to death and critical illness, are identical to some main plans offered in individual lifebusiness, the valuation methods used for these being consistent with their related main plans. Measurement of liabilitiesfor benefits related to accident disability, accidental death and sickness are based on unearned premium method.

(f) Reserve for Outstanding Losses (Individual life)

The Company records reported losses as payable upon intimation of any claim. Unpaid claims are assessed from time totime and the liability measured in accordance with management’s estimates of whether claims are payable or not.

Claims payable over a duration of more than one year are measured at the discounted value of expected payments.

The Company also provides, as part of policyholder liabilities, a reserve for incurred but not reported claims (IBNR). Dueto insufficient claim history of Individual life business, however, the general lag method for IBNR is not used. The Companyadopts a methodology based on best estimates of future incurred but not reported claims, as suggested by the appointedactuary of the Company.

40.1.1.2 Group Life and Group Family Takaful Protection Policies

Nature of Contracts:

The Company’s group life and group takaful business consists of one year term life contracts which provide coverage,in the event of death or disability, to:

1) Employees of a common employer, benefits payable under these contracts being either fixed, in case of death, orlinked to the extent of loss incurred by the policyholder, in case of disability;

2) Customers of financial institutions, the contracts being issued to financial institutions to protect their customers’outstanding loan balances, such as on personal loan, mortgages and credit cards.

Unit - Linked Group Life policies are similar in nature to Individual Life Unit linked Products.

Policyholder Liabilities:

Policyholder liabilities consist of the following components:

Net Unearned Premium Reserve

The unearned premium reserve is the portion of premium that had been booked in the current period but pertains to aperiod that extends beyond the valuation date. The fraction of premium that is to be consumed in the succeeding periodis considered to be unearned. The unearned premium is the aggregate for both posted and fluctuations in the unearnedpremium.

The unearned premium reserve is computed both gross and net of reinsurance, the methodology used for both beingsimilar.

Unit - Linked Group Life Policies

Policyholder Liabilities for these policies are measured as the sum of the fair value of units attached and the unearnedpart of any risk premiums charged.

Profit Commission Reserve (Accrued for Policyholders)

This is the total accrued profit commission that is payable to Policyholders at a future date. Profit commission for anypolicy normally becomes payable at the end of three policy years. However, accrued profit commission is calculated atthe end of each policy year to account for the liability that has been created for that year. The sum of all such accruedprofit commissions for all schemes is the Profit Commission reserve.

Profit Commission Reserve (Accrued from Reinsurer)

This is the total profit commission due from reinsurer on all reinsured schemes. Profit commission rates are applied oninsured groups, based on their size. The total profit commission accrued from reinsurer is the sum of profit commissionsfor each group.


153

Premium Deficiency Reserve

The need for premium deficiency reserve arises when the Company expects to incur claims in excess of reserves set asideusing conventional methods. The Company analyzed its current portfolio of group contracts and evaluated loss ratiosof group business. The Company does not expect excessive claims on any schemes and hence no provision for PremiumDeficiency Reserve is set aside.

Incurred But Not Reported (IBNR) Reserve

The IBNR (incurred but not reported) reserve is an estimate of those claims that might have occurred but not yet reported.This is estimated by using the claim intimation lag from the date of death for the claims that have been reported in thelast two years. The system generated IBNR triangle report is used to calculate the ratio of delay to estimate the probableclaims pertaining to and not reported up to the valuation date.

Policyholder Policyholder liabilitiesliabilities on existing using best estimate

valuation basis assumptionsAssumption

Mortality 105 683 548 105 477 373

Investment returns 105 683 548 105 671 303

The liabilities evaluated under these assumptions suggest that recognized liabilities are adequate and no further provisionis required.

40.1.2 Reinsurance / Retakaful contracts held:

The Company has entered into reinsurance / retakaful (hereinafter referred to as “reinsurance”) arrangements, for bothits individual and group businesses, in order to manage risks associated with the frequency and severity of claims. Thesearrangements include cover under treaties as well as on a facultative basis. The terms of reinsurance treaties vary by typeof business, the objective being to maintain a reasonable risk profile suiting the risk appetite and overall exposure toadverse movements in mortality or morbidity.

Primarily, reinsurance assets are amounts due from reinsurers with respect to recoveries under claims and profit commission.Reinsurance recoveries are measured according to the terms and conditions of the reinsurance contracts.

Reinsurance liabilities consist of amounts due to reinsurers on account of reinsurance premiums due which are measuredaccounting to the terms of the arrangements.

The details related to reinsurance assets and liabilities are shown below:

40.1.1.3 Liability Adequacy Test

Liability adequacy test is applied to all long term contracts where necessary. The test is carried out using current bestestimates of assumptions and future net cash flows, including premiums receivable and benefits payable.

To determine the adequacy of liabilities, assumptions must be based on realistic best estimates. At the moment, theCompany does not have sufficient mortality data for comparison with assumed life table EFU (61-66). The Companycompares EFU (61-66) with recent mortality studies for similar groups. The comparison suggests that current actualmortality experience is better than the experience reflected in EFU (61-66). Thus the Company uses a modified versionof EFU (61-66) as a best estimate of mortality for liability adequacy test.

The investment return currently assumed for valuation is 3.75% p.a. This assumption reflects a long term conservativereturn that the Company expects to earn on assets backing these liabilities. On a more realistic view of current financialmarkets, the Company estimates that a long term return on these assets of 6% is reasonable. Liabilities are reevaluatedat investment return assumption of 6% for Liability Adequacy Test.

The table below compares total policyholder liabilities under existing valuation basis with policyholder liabilities calculatedusing best estimate assumptions:

The Company assesses impairment on its reinsurance assets on a regular basis to identify any losses in recoveries. As ofnow, Company’s all reinsurance assets are due from reinsurers with a credit rating of “A or Above”. The reinsurersmaintain a sound credit history and hence no impairment provision is required for now.

Amounts due Amounts dueReinsurer rating from reinsurers to reinsurers

'A' or above 13 462 193 218



154

40.1.3 Accounting estimates and judgments

The Company makes several estimates of assumptions to evaluate its assets and liabilities reported in its financial statements.On the liability side, there are a number of factors that have a direct impact on policyholder liabilities. Assumptions arecontinually evaluated using internal analysis and monitoring processes to test validity of these assumptions.

40.1.3.1 Mortality, Disability and Critical Illness

Mortality and disability rates are basic assumptions used in valuation of policyholder liabilities. For mortality, life tableEFU (61-66) is being currently used. The life table was published more than 40 years ago and may not reflect mortalityimprovements. For reserving purposes, a 10% mortality loading is used over EFU (61-66) rates to build in conservatism.An analysis of past mortality experience, reveals that 10% mortality loading for reserving purposes is appropriate toensure prudence.

Sudden adverse experience in mortality might occur due to epidemics, causing deaths on a mass scale due to incurablecontagious illnesses. Mortality may also deteriorate over a period of time, due to widescale changes in living life styles,eating and health habits.

Sensitivity test with respect to mortality is carried out and impact on policyholder liabilities is observed. When mortalityrates increase by 10%, policyholder liabilities increase by 0.063%. Likewise, when mortality rates decrease by 10%,policyholder liabilities decrease by 0.063%.

In absence of credible disability and critical illness incidence rates, the Company uses reinsurance rates for actuarial liabilityvaluation of disability and critical illness benefits.

40.1.3.2 Investment income

Investment income is an important assumption for valuation of long term conventional plans. This is the rate at whichfuture expected benefits and expected premiums are discounted. Currently, the valuation assumption used for investmentincome is 3.75% p.a.

Sensitivity test with respect to investment income is carried out and its impact on policyholder liabilities observed. Wheninvestment rate is increased by 10%, policyholder liabilities decrease by 0.002%. Likewise, when investment income rateis decreased by 10%, policyholder liabilities increase by 0.002%.

40.1.4 Frequency and Severity of claims

Frequency and severity can have a significant impact on total claims paid out by the Company. High frequency of claimscould occur due to adverse experience of mortality or disability. Adverse mortality experience, in short-term, could bedue to a wide-range spread of fatal contagious disease, an epidemic. Over a longer term, overall health practices, eatingand living habits could potentially have an adverse effect on mortality.

About 90% of Company’s business is concentrated in the provinces of Sindh and Punjab. This concentration is largelyin line with the population of these provinces relative to country’s total population. The Company’s diversified portfolioof contracts helps limit the frequency and severity of claims. However, in event of large number of deaths or disabilities,Company does face the risk of paying out excessive claims. To manage and mitigate this exposure, arrangements in formof reinsurance and catastrophe cover are in place.

In Group life business, frequency and severity of claims can be affected by concentration of business in a specifically riskyclass of industry. Claim frequency can rise substantially from businesses in industries that are more prone to accidentsdue to the nature of work they perform. Likewise, severity of claims can also be associated with business concentrationin a specific class of industry. The Company continually monitors its concentration risk and takes measures to keep itsbusiness portfolio well diversified.

Contracts in group life, are mainly one year term life contracts, where premium rates are generally guaranteed for oneyear only. The Company retains the right of changing premium rates by incorporating the claim experience of a groupinsured, thereby allowing the Company to charge a specific group in line with its claim experience.

The Company regularly carries out an exercise to monitor time lags between intimation and settlement claim dates. Thestudy reveals that a significant portion of claims are settled within twelve months of claim intimation.


155

40.1.5 Sources of uncertainty in estimation of future benefit payments and premium receipts

The uncertainty with respect to future premiums and benefits may arise due to unexpected changes in mortality ordisability experience. Adverse mortality experience will result in excess benefit payments, and reduced future premiumincome.

Likewise, unexpected changes in surrender and lapse could also have a significant impact on future realized premiums.Estimates of lapses and surrenders are based on internal experience studies carried out annually. Factors that could affectpolicyholder behavior include market factors such as interest rates, policyholder preferences in terms of the monetaryvalue that a policyholder relates with the insurance policy, the frequency of premium payments and the age of theindividual.

40.1.6 Process used to decide on assumptions

Assumptions used to determine policyholder liabilities include mortality, disability, and critical illness rates, investmentreturns for conventional business, investment returns for investment linked business, expenses and mortality loading.

Mortality assumptions should in principle reflect adequate conservatism in liabilities. The Company considers EFU (61-66) life table to be appropriate for actuarial valuation of policyholder liabilities.

Disability and Critical illness rates used for liability valuation are the reinsurance rates provided by the reinsurer. Due tolack of sufficient claim experience for these disabilities and critical illnesses, the Company considers this as the best estimateavailable.

The Company uses an investment return assumption of 3.75% per annum to evaluate actuarial liabilities of its conventionalplans. Liabilities of conventional products should in principle reflect a long term conservative interest rate, to reflectadequate conservatism. An investment return of 3.75% per annum is hence considered appropriate.

For Unit - Linked products where the death benefit is paid in form of annuity, the Company uses a discount rate of 6%to evaluate present value of future stream of cash flows. In principle, the interest rate assumption set to discount cashflows should reflect the expected returns on assets backing these liabilities. The Company expects to earn at least a 6%return on assets backing these unit - linked liabilities.

In valuation of unearned premium reserve for unit - linked plans a loading of 10% is applied on rates from EFU (61-66).In opinion of Company’s management and appointed actuary this assumption is prudent.

Since from Annual 2014 onwards the Company shall maintain 100% retention on its books on account of SolvencyMargin, the Company will no longer keep an extra reserve on account of mortality fluctuation. It is the opinion ofCompany’s management and appointed actuary that this assumption is prudent.

The Company reserves for any increase in actuarial liability resulting from the possible reinstatement of lapsed policies.The current liability valuation also takes into account cash value of units pertaining to policies lapsed in last 2 years. Aunit - linked policy lapses when the second annual premium of policy is not received. In principle, cash value of a lapsedpolicy is not surrenderable, as per provisions and conditions, unless the second premium is paid and policy is reinstated.However, the Company recognizes the possibility of these lapsed policies to be reinstated and hence carries out periodicstudies to determine expected renewals. In opinion of the Company’s management and appointed actuary assumptionsused to set aside a liability against these lapsed policies is prudent.

For the purpose of liability adequacy tests the Company makes assumptions relating to expenses. For this purpose regularexpense analyses are carried out based on actual expenses and transaction volumes.

40.1.7 Sensitivity Analysis

The basic assumptions used in valuation of liabilities are mortality, disability, critical illness rates and investment returnsassumed in discounting future cash flows. The table below presents sensitivity results with respect to above mentionedfactors, with their impact observed on policyholder liabilities:

% change in % change inSensitivity variable sensitivity variable policyholder liabilities

Worsening of mortality and critical illness rates 10% 0.063%Improvement in mortality and critical illness rates 10% -0.063%Increase in investment returns 10% -0.002%Decrease in investment returns 10% 0.002%


40.1.8 Management of insurance, financial and other risks

40.1.8.1 Insurance Risk

The risk that Company faces is due to randomness in occurrence of insured events. In principle, the Company faces therisk that total claims exceed the reserves set aside at any point in time.

The occurrence of any single claim and amount paid on a single claim is a random event. However, as the number of contractsand independent lives increase, the estimated claim amounts and the number of claims get closer to the actual figures. Thisphenomenon is observed when pool of contracts is large enough and lives are independent. To manage this risk, Companymonitors its concentration risk, on several parameters, and maintains diversity in its portfolio of insurance contracts.

In order to maintain this diversification, the Company takes a number of steps to manage the overall insurance risk ofits portfolio of insurance contracts. The risk of an individual life is broadly assessed in light of its: medical condition, whichinclude living habits, physical health and medical history; occupational condition, which assesses an individual’s job profileand whether any characteristics of the job could have a significant impact on that individuals mortality; financial condition,which determines the individuals ability and affordability to purchase and maintain an insurance contract over the long-term.

The Company identifies and defines parameters in its underwriting strategy to clearly identify individuals (sub-standardlives) which could potentially increase the overall risk of insurance portfolio. Based on certain parameters, such individualspay an extra charge called Extra Mortality Premium, in order to compensate for extra risk added to existing pool of insuredindividuals. These measures allow the Company to charge an individual life in line with the risk contributed to its insuranceportfolio. These underwriting measures also discourage accumulation of sub-standard lives in the insured pool, therebymanaging the overall insurance risk of Company in the long-term.

The Company also manages its geographical concentration of risk. Currently the Company’s geographical concentrationof risk for its Individual Life sales force business is as follows:

Individual Conventional Business Diversification of Risk Portfolio

Before AfterResinsurance Reinsurance

Azad Kashmir 1.88% 2.36%Baluchistan 5.05% 6.13%Gilgit Baltistan 1.49% 2.04%Khyber Pakhtunkhwa 2.19% 2.60%Punjab 42.09% 42.31%Sindh 47.29% 44.56%

Conventional business:Diversification of Risk Portfolio


Sindh 56.49% 56.51%Punjab 43.51% 43.49%

Group Family Takaful business:

Sindh 96.62% 79.55%Punjab 3.38% 20.45%

For Group Life business, the Company’s geographical concentration of risk is as follows:

Individual Family Takaful business Diversification of Risk Portfolio


Azad Kashmir 3.43% 3.46%Baluchistan 0.99% 1.22%Gilgit Baltistan 0.00% 0.01%Khyber Pakhtunkhwa 2.82% 4.60%Punjab 47.04% 50.32%Sindh 45.72% 40.39%


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The Company also has reinsurance arrangements with its reinsurance partners, to whom the Company passes any excessinsurance risk beyond its retention levels. Limits are continually monitored and kept in line with the overall risk tolerance.This allows the Company to retain the risk according to its risk capacity and minimizes excessive claim payouts. Currently,the total risk retained on individual life products is Rs. 2,000,000 per life for the death risk, Rs. 500,000 for individualtakaful policies and Rs. 1,000,000 for risks associated with critical illness plans. For Group Life, the Company currentlyretains Rs. 2,000,000 of total life risk on each life and Rs. 1,000,000 for Group Family Takaful business. For critical lifecover, 50% of the sum covered is retained for both, Group Life and Group Family Takaful business.

The Company also has arrangements for claims in event of a catastrophic scenario under an Excess of Loss Catastrophecover which is triggered in event of excessive claims, limiting total amount of claims paid out if such an event occurs.

40.1.8.2 Other risks

The Company faces a number of financial risks in its assets and liabilities, apart from insurance risk. These risks can bebroadly categorized as expense risk, lapse risk, market risk, credit risk and liquidity risk. This section describes these riskson the Company level and identifies and describes the processes and strategy of management to manage these risks.

40.1.8.3 Expense risk

The risk that the Company faces is that future expenses may be higher than those used in pricing of products causingan expense overrun. The Company mitigates this risk by incorporating a certain level of acceptable conservatism in buildingfuture policy expense factors in pricing and expects to maintain its actual expenses within these limits. Regular monitoringof expenses allows the Company to adjust its pricing in time to account for higher than expected expenses.

The Company closely monitors its expenses by regularly carrying out an expense analysis for its business. The assumptions forfuture policy expense levels are determined from the Company’s most recent annual expense analysis, with an extra marginbuilt-in to account for variability in future expenses. A review of product pricing is carried out each year based on the latestavailable expense factors. Constant monitoring of expenses enables the Company to take corrective actions in time.

Based on the results of expense analysis, the Company apportions its management expenses to different lines of business.

40.1.8.4 Lapse risk

The risk the Company faces is that future persistency rates may be lower than assumed in pricing, thus impacting theemergence of profit from its portfolio of individual life policies. The Company however is confident that this risk isinsignificant as the Company places tremendous emphasis on quality customer services and retention of clients by makingpersistency standard an integral part of the sales force culture. The Company has been consistently maintaining goodlevels of persistency and will continue a similar trend in future.

The Company has robust systems in place to regularly monitor the lapse experience. Regular focus on persistency is embeddedin the Company culture and is an integral part of the monitoring of the sales force performance and remuneration.

40.1.8.5 Market risk

Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices, whetherthose changes are caused by factors specific to the individual security, or its issuer, or factors affecting all securities tradedin the market. The Company is exposed to market risk in relation to its investments with respect to products other thanunit linked products (in unit - linked products, investment risk is borne by the policyholder). The Company limits marketrisk by maintaining a diversified portfolio and by continuously monitoring developments in government securities, equityand term finance certificates. The Company, along with minimizing market risk by careful diversification in assets, alsoperiodically carries out an Asset Liability management exercise, to match its duration of assets and liabilities.

40.1.8.6 Credit risk and concentration of credit risk

Credit risk arises when one party fails to discharge its obligation and cause the other party to incur a financial loss.Concentration of credit risk arises when a number of counter parties have similar types of business activities. As a result,any change in economic, political or other conditions would affect their ability to meet their contractual obligations. TheCompany is exposed to credit risk on premiums receivable from group clients, commission and claims recoverable frominsurers and investment in term finance certificates. The management monitors exposure to credit risk through regularreview of credit exposure, assessing credit worthiness of counter parties and prudent estimates of provision for doubtfuldebts. The Company believes it is not exposed to any major concentration of credit risk.

157


40.1.8.7 Liquidity risk

Liquidity risk is the risk that the Company is unable to meet its funding requirements, without incurring a material lossin disposing off its illiquid assets. To guard against this risk, the Company maintains a healthy balance of cash and cashequivalents and readily marketable securities. Liquidity is monitored regularly and assets are frequently rebalanced tomaintain a certain level of liquidity at all times. Going forward, the Company also plans to set up a contingency plan,whereby alternate sources of liquidity will be identified and assets would be analyzed and ranked in their liquidity order,to determine which assets would need to be disposed off first in case of a liquidity crisis.

The expected payouts in liabilities along with maturity profile of assets and liabilities are monitored to ensure that adequateliquidity is maintained within the Company, to avoid the need of liquidating assets below their actual market value.

The following extract, classifies the assets and liabilities of the Company by type of product in each Statutory Fund as at31 December 2018. The table below also presents details of assets under Shareholder’s Fund:

2018

Investment LinkedProducts (All unit

main linked plans)

ConventionalProducts

(Individual, GroupLife, Riders)

Shareholders’Fund Total

(Rupees ‘000)

Available for sale:

- Government Securities 49 262 169 – – 49 262 169

- Other fixed income securities 18 921 372 196 600 10 000 19 127 972

Held to maturity:

- Government Securities – 1 514 268 2 196 429 3 710 697

- Other fixed income securities – – – –

Available for sale:

- Listed equities 33 330 491 80 451 115 762 33 526 704

- mutual funds 96 860 – 80 227 177 087

- Unlisted equities and mutual funds – – 16 008 16 008

Loans and receivables – – 169 190 169 190

- Insurance receivables – 156 138 – 156 138

Reinsurance assets – 13 462 – 13 462

Cash and cash equivalents 3 906 188 862 754 17 420 4 786 362

Other assets 1 628 540 – 4 190 282 5 818 822

Total assets 107 145 620 2 823 673 6 795 318 116 764 611

Investment LinkedProducts (All unit

main linked plans)

ConventionalProducts

(Individual, GroupLife, Riders)

Shareholders’Fund Total

(Rupees ‘000)

Long-term insurance contracts andinvestment contracts:

Fixed term 60 693 131 289 389 – 60 982 520Whole of life 43 424 056 – – 43 424 056Short-term insurance contracts – 948 429 – 948 429Riders – 328 544 – 328 544Equity – – 6 027 596 6 027 596Other liabilities 3 028 433 1 257 311 767 722 5 053 466

Total liabilities 107 145 620 2 823 673 6 795 318 116 764 611


158


41. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES

41.1 Financial risk management objectives and policies

The Company is exposed to a variety of financial risks: market risk (Comprising currency risk, interest rate risk, and otherprice risk), liquidity risk and credit risk in relation to the financial statements on its balance sheet.

The Company's overall risk management seeks to minimize potential adverse effects on the Company's financialperformance of such risk.

The Board of Directors has the overall responsibility for the establishment and oversight of the Company's risk managementframework. There are Board Committees and Management Committees for developing risk management policies andits monitoring.

41.1.1 Market Risk

Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices, whetherthose changes are caused by factors specific to the individual security, or its issuer, or factors affecting all securitiestraded in the market. The Company is exposed to market risk with respect to its investments and with respect to productsother than unit linked products (Where the investment risk is passed on to policyholders). The Company limits marketrisk by maintaining a diversified portfolio and by continuously monitoring developments in government securities, equityand term finance certificates. The Company, along with minimizing market risk by careful diversification in assets, alsoperiodically carries out an Asset Liability management exercise, to match its duration of assets and liabilities.

41.1.1.1 Interest Rate Risk Exposure

Interest rate risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because ofchanges in market interest rates. The Company invests in securities and has bank balances and deposits that are subjectto interest / mark-up rate risk. The Company limits interest / mark-up rate risk by monitoring changes in interest / mark-uprates in the currencies in which its cash and investments are denominated.

The information about Company's exposure to interest rate risk (other than relating to policyholders' liabilities) basedon contractual reprising or maturity dates as of 31 December 2018 whichever is earlier is as follows:

(Rupees ‘000)

Maturity Upto 1 Year

Maturityafter 1 Year Sub Total

31 December 2018

Interest / Markup Bearing Non Interest / Non Markup Bearing

On balance sheet financial instruments

Assets

Investments 60 763 586 11 337 251 72 100 837 33 719 800 – 33 719 800 105 820 637Loans and Other Receivables 35 196 88 688 123 884 2 986 554 – 2 986 554 3 110 438Insurance Receivables – – – 156 138 – 156 138 156 138Cash 299 – 299 – – – 299

Others 4 786 063 – 4 786 063 13 462 – 13 462 4 799 525

65 585 144 11 425 939 77 011 083 36 875 954 – 36 875 954 113 887 037

Liability

Premium received in advance – – – 714 419 – 714 419 714 419Others – – – 1 672 730 – 1 672 730 1 672 730

– – – 2 387 149 – 2 387 149 2 387 149

Interest risk sensitivity gap 65 585 144 11 425 939 77 011 083 34 488 805 – 34 488 805 111 499 888

Cumulative interest risk sensitivity gap 65 585 144 77 011 083

TotalMaturity Up

to 1 YearMaturity

after 1 Year Sub Total

159


(Rupees ‘000)

Maturity Up to1 Year


31 December 2017 (Restated)

Interest / Markup Bearing Non Interest / Non Markup Bearing

On balance sheet financial instrumentsTotal

Maturity Up to1 Year


Assets

Investments 58 040 336 11 945 376 69 985 712 27 973 409 – 27 973 409 97 959 121Loans and Other Receivables 33 348 61 290 94 638 2 677 271 – 2 677 271 2 771 909Insurance Receivables – – – 224 831 – 224 831 224 831Cash – – – – – – –Others 6 057 913 – 6 057 913 – – – 6 057 913

64 131 597 12 006 666 76 138 263 30 875 511 – 30 875 511 107 013 774

Liability

Premium received in advance – – – 656 323 – 656 323 656 323Others – – – 1 284 256 – 1 284 256 1 284 256

– – – 1 940 579 – 1 940 579 1 940 579

Interest risk sensitivity gap 64 131 597 12 006 666 76 138 263 28 934 932 – 28 934 932 105 073 195

Cumulative interest risk sensitivity gap 64 131 597 76 138 263

The effective interest rate range (per annum) for the financial assets is as follows:

2018 2017

Saving and other accounts 7.5% to 9% 4.5% to 6%

Deposits 6.5% to 12% 5% to 8%

Loans and advances 8% to 12.5% 8% to 12.5%

Investments 7.7% to 12.81% 5.59% to 12%

41.1.1.2 Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of financial instruments will fluctuate becauseof changes in foreign exchange rates. The Company, at present is not materially exposed to currency risk as majorityof the transactions are carried out in Pak Rupees.

41.1.1.3 Other Price Risk

Other price risk is the risk that the fair value of future cash flows of financial instruments will fluctuate becauseof changes in market prices (other than those arising from interest rate risk or currency risk), whether those changesare caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similarfinancial instruments traded in the market.

41.1.1.4 Equity Price Risk

The Company’s listed securities are susceptible to market price risk arising from uncertainties about the future valueof investment securities. The Company limits market risk by maintaining a diversified portfolio. In addition, theCompany actively monitors the key factors that affect stock market. In the equity portfolio, the top three sectorsby exposure are Oil and Gas, Banks and Chemicals.

41.1.2 Credit Risk

Credit risk arises when one party fails to discharge its obligation and cause the other party to incur a financial loss.Concentration of credit risk arises when a number of counter parties have similar types of business activities. As aresult, any change in economic, political or other conditions would affect their ability to meet their contractualobligations. The Company is exposed to credit risk on premiums receivable from group clients, commission andclaims recoverable from insurers and investment in term finance certificates. The management monitors exposureto credit risk through regular review of credit exposure, assessing credit worthiness of counter parties and prudentestimates of provision for doubtful debts. The Company believes it is not exposed to any major concentration ofcredit risk.


160


161

2018 2017Rating of Banks*

A 1 331 824 –

A+ 723 302 2 144 395

AA 2 165 156 2 770 348

AA- 6 194 290 4 577 239

AA+ 3 202 129 3 109 793

AAA 6 212 802 5 887 666

19 829 503 18 489 441

*Rating of banks performed by PACRA JCR-VIS and Standard and Poors.

(Rupees '000)

The credit quality of Company's exposure on TFCs can be assessed with reference to rating issued by rating agencyas follows:

RatingIssuer of TFC Rating Agency 2018 2017

Al Baraka Bank A JCR-VIS 22 189 28 560

Bank Al-Falah Limited AA PACRA 15 132 15 559

Bank Al-Habib Limited AA+ PACRA 200 289 100 000

Hascol Petroleum Limited Sukuk AA PACRA 99 499 131 339

Engro Fertilizer Sukuk AA- JCR-VIS 91 000 186 375

Fatima Fertilizer Sukuk AA- PACRA 29 677 40 307

K Electric AA+ JCR-VIS 78 361 78 360

First Habib Modarba AA+ PACRA 210 000 210 000

Byco Oil Pakistan Sukuk AAA PACRA 100 000 100 000

NIB Bank Limited AAA JCR-VIS 101 592 101 635

International Brands AA Moody's 99 182 100 000

Dawood Hercules AA PACRA 200 000 –

Pakistan Services Limited AA- PACRA 131 958 –

Pak. Elektron Limited AA- PACRA 99 994 –

Bank Alfalah AA+ PACRA 99 999 –

Bank Al-Habib Limited AA PACRA 100 000 –

United Bank Limited AA+ JCR-VIS 1 250 000 –

Soneri Bank Limited A PACRA 50 000 –

Askari Bank Limited. AA- PACRA 500 000 –

Dubai Islamic Limited A JCR-VIS 100 000 –

Meezan Bank Limited AA JCR-VIS 500 000 –

4 078 872 1 092 135

(Rupees '000)

The credit quality of Company’s bank balances (including Term Deposit Receipts) can be assessed with referenceto external credit ratings as follows:


Investment in Government securities are not exposed to any credit risk.

The management monitors exposure to credit risk in premium receivable from group clients through regular review ofcredit exposure and prudent estimates of provision for doubtful debts. As of 31 December 2018 there was no provisionfor doubtful premiums as all the premiums receivable were considered good.

41.1.3 Capital risk managements

The Company’s objective when managing capital is to safeguard the Company’s ability to continue as a going concernso that it can continue to provide returns for shareholders and benefits for other stakeholders; and to maintain a strongcapital base to support the sustained development its businesses. The Company manages its capital structure by monitoringreturn on net assets and makes adjustments to it in the light of changes in economic conditions. In order to maintain oradjust the capital structure, the Company may adjust the amount of dividend paid to shareholders or issue new shares.

Currently the Company has a paid up capital of Rs. 1 billion against the minimum required paid-up capital of Rs. 500million set by the SECP for the life insurance Companies for the year ended 31 December 2018.

In addition, the Company is also required to maintain minimum solvency in accordance with the rules and regulationsset by the SECP, which are fully met by the Company.

41.1.4 Fair value

Investments on the balance sheet are carried at fair value except for unquoted investments which are stated at cost. TheCompany is of the view that the fair value of the remaining financial assets and liabilities are not significantly differentfrom their carrying values since assets and liabilities are essentially short term in nature.

The Company’s accounting policy on fair value measurements of its investments is discussed in note 3.1.12 to thesefinancial statements.

The Company measures fair values using the following fair value hierarchy that reflects the significance of the inputs usedin making the measurements:

Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable forthe asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Fair value measurements using inputs for the asset or liability that are not based on observable market data (i.e.unobservable inputs).


162


163

(Rupees '000)

On balance sheet financial instruments Note Fair Available Available HTM Loans and Other Other Total Level 1 Level 2 Level 3 Total through profit for sale Receivables financial financial

and loss assets liabilities

31 December 2018Fair value

Financial assets measured at fair value- Investments

Government Securities (Tbills + PIBs + Sukuks) 51 909 147 – – – – – 51 909 147 – 51 909 147 – 51 909 147

Sukuk Bonds (Other than government) 1 332 919 – – – – – 1 332 919 – 1 332 919 – 1 332 919

Listed equity securities 33 519 330 7 374 – – – – 33 526 704 33 526 704 – – 33 526 704

Unlisted equity securities 16 008 – – – – – 16 008 – – 16 008 16 008

Units of mutual funds 177 087 – – – – – 177 087 – 177 087 – 177 087

Debt securities (Listed TFCs) 2 535 953 – – – – – 2 535 953 2 535 953 – – 2 535 953

Financial assets not measured at fair value- Government Securities (Tbills + PIBs + Sukuks) – – 1 063 719 – – – 1 063 719 – 1 047 472 – 1 047 472

- Balances with banks * 19 829 503 – – – – – 19 829 503 – – – –

- Certificate of Investment 210 000 – – – – – 210 000 – – – –

- Advances – – – 124 610 884 760 – 1 009 370 – – – –

Other assets (Excluding markup accrued)* – – – – 2 695 536 – 2 695 536

109 529 947 7 374 1 063 719 124 610 3 580 296 – 114 305 946 36 062 657 54 466 625 16 008 90 545 290

Financial liabilities not measured at fair value- Other liabilities (Excluding Liabilities against

assets subject to finance lease) * – – – – – 3 133 478 3 133 478 – – – –

– – – – – 3 133 478 3 133 478 – – – –

109 529 947 7 374 1 063 719 124 610 3 580 296 ( 3 133 478 ) 111 172 468 36 062 657 54 466 625 16 008 90 545 290

The table below analyses financial instruments measured at the end of the reporting period by the level in the fair valuehierarchy into which the fair value measurement is categorized:

(Rupees '000)

On balance sheet financial instruments Note Fair Available Available HTM Loans and Other Other Total Level 1 Level 2 Level 3 Total through profit for sale Receivables financial financial

and loss assets liabilities

31 December 2017 (Restated)Fair value

41.1.4.1 The Company has not disclosed the fair values for these financial assets and liabilities, as these are for short term or repriceover short term. Therefore, their carrying amounts are reasonable approximation of fair value.

Financial assets measured at fair value- InvestmentsGovernment Securities (Tbills + PIBs + Sukuks) 53 371 573 – – – – – 53 371 573 – 53 371 573 – 53 371 573

Sukuk Bonds (Other than government) 136 381 – – – – – 136 381 – 136 381 – 136 381

Listed equity securities 27 740 992 84 364 – – – – 27 825 356 27 825 356 – – 27 825 356

Unlisted equity securities 11 008 – – – – – 11 008 – – 11 008 11 008

Units of mutual funds 137 046 – – – – – 137 046 – 137 046 – 137 046

Debt securities (Listed TFCs) 745 754 – – – – – 745 754 745 754 – – 745 754

Financial assets not measured at fair value- Government Securities (Tbills + PIBs + Sukuks) – – 3 083 004 – – – 3 083 004 – 3 097 470 – 3 097 470

- Balances with banks * 18 489 441 – – – – – 18 489 441 – – – –

- Certificate of Investment 210 000 – – – – – 210 000 – – – –

- Advances – – – 94 638 1 142 548 – 1 237 186 – – – –

- Other assets (Excluding markup accrued)* – – – – 2 089 592 – 2 089 592 – – – –

100 842 195 84 364 3 083 004 94 638 3 232 140 – 107 336 341 28 571 110 56 742 470 11 008 85 324 588

Financial liabilities not measured at fair value

- Other liabilities (Excluding Liabilities against

assets subject to finance lease) * – – – – – 2 722 126 2 722 126 – – – –

– – – – – 2 722 126 2 722 126 – – – –

100 842 195 84 364 3 083 004 94 638 3 232 140 ( 2 722 126 ) 104 614 215 28 571 110 56 742 470 11 008 85 324 588


42 WINDOW TAKAFUL OPERATIONS

The Statement of financial position of Window Takaful Operations as at 31 December 2018 and its financial performancefor the year ended 31 December 2018 are as follows:

42.1 Balance Sheet (Rupees ‘000)

Family Takaful Family TakafulShareholders’ Investment Protection Aggregate Aggregate

Funds Linked Business Business 2018 2017

Statutory Funds

Share capital and reserves

Operator's Fund 50 000 – – 50 000 50 000Accumulated surplus 21 557 – – 21 557 3 995Net shareholders' equity 71 557 – – 71 557 53 995Balance of statutory fund [including policyholders' liabilities Rs. 3496.08 million (2017:Rs.2244.71 million)

Participant Investment Fund 38 974 3 392 638 – 3 431 612 2 219 882Participant Takaful Fund - Waqf – 133 162 102 320 235 482 147 473Cede Money - Waqf – 2 000 – 2 000 2 000Shareholder's Fund unit holding in PIF – 22 201 – 22 201 16 182

38 974 3 550 001 102 320 3 691 295 2 385 537Creditors and accruals

Outstanding Claims – 42 420 26 843 69 263 27 247Contribution received in advance – 84 788 9 316 94 104 30 516Amounts due to retakaful – 18 293 48 008 66 301 28 012Amounts due to agents – 134 719 12 851 147 570 87 404Accrued expenses 76 692 – – 76 692 16 837Other creditors and accruals 181 282 328 571 470 470 980 323 514 564Capital contribution – – – – 18 309Interfund payable 183 074 15 843 – 198 917 149 703Total liabilities 441 048 624 634 567 488 1 633 170 872 592

Total equity and liabilities 551 579 4 174 635 669 808 5 396 022 3 312 124

Cash and bank deposits

Policy stamps in hand 91 – – 91 58Current and other accounts 68 677 854 077 34 343 957 097 511 060Deposits maturing within 12 months 103 000 1 271 000 – 1 374 000 1 489 000

171 768 2 125 077 34 343 2 331 188 2 000 118Investments

Government securities 45 023 211 621 70 333 326 977 158 050Other Fixed Income – 480 000 – 480 000 25 000Listed Equities & Mutual Funds – 1 148 408 – 1 148 408 508 542

45 023 1 840 029 70 333 1 955 385 691 592Current assets - others

Prepayments 8 019 – – 8 019 1 909Contributions due but unpaid – – 13 318 13 318 4 091Sundry receivables 287 491 180 380 350 486 818 357 433 817Investment income accrued 1 865 29 149 2 411 33 425 14 306Shareholder's Fund unit holding in PIF 22 201 – – 22 201 16 182Capital contribution 12 809 – – 12 809 –Income Tax Assets 933 – – 933 –Advances and deposits 1 470 – – 1 470 406Interfund Receivable – – 198 917 198 917 149 703

334 788 209 529 565 132 1 109 449 620 414

Total assets 551 579 4 174 635 669 808 5 396 022 3 312 124


164


165

42.2 Revenue Account (Rupees ‘000)

Family Takaful Family TakafulInvestment Protection Aggregate Aggregate

Linked Business Business 2018 2017

Statutory Funds

42.2.1 Participants' Investment Fund ( PIF)

IncomeAllocated contribution 1 636 490 – 1 636 490 1 491 774Policy transfer to other statutory fund 7 126 – 7 126 7 543Bonus units transfer to Statutory Fund 26 718 – 26 718 –Net investment income / (loss) 126 548 – 126 548 ( 106 765 )Total net income 1 796 882 – 1 796 882 1 392 552

Less: Claims and ExpenditureInvestment management charges 40 166 – 40 166 24 995Bid offer spread 77 991 – 77 991 72 988Policy admin fee 49 991 – 49 991 25 575Wakalat-ul-Istismar 168 148 – 168 148 123 558Surrender 421 919 – 421 919 370 277

590 067 – 590 067 493 835

Excess of income over claimsand expenditure 1 206 815 – 1 206 815 898 717

Add : Technical reserves at the beginning of the year 2 185 823 – 2 185 823 1 287 106

Less : Technical reserves at the end of the year 3 392 638 – 3 392 638 2 185 823( 1 206 815 ) – ( 1 206 815 ) ( 898 717 )

Surplus / (Deficit) – – – –

Movement in technical reserves 1 206 815 – 1 206 815 898 717

Balance of PIF at the beginning of the year 2 185 823 – 2 185 823 1 287 106

Balance of PIF at the end of the year (a) 3 392 638 – 3 392 638 2 185 823

(Rupees ‘000)



Statutory Funds

42.2.2 Participants' Takaful Fund (PTF)

IncomeContribution net of retakaful recoveries 142 017 186 791 328 808 217 672Net investment income 8 520 3 689 12 209 3 853Total net income 150 537 190 480 341 017 221 525

Less: Claims and ExpenditureClaims net of retakaful recoveries 19 389 69 984 89 373 62 768Wakala fee 49 197 87 721 136 918 102 834

68 586 157 705 226 291 165 602

Excess of income over claims and expenditure 81 951 32 775 114 726 55 923Add : Technical reserves at the beginning of the year 26 219 32 667 58 886 28 574Less : Technical reserves at the end of the year 45 103 58 336 103 439 58 885

( 18 884 ) ( 25 669 ) ( 44 553 ) ( 30 311 )Surplus / (Deficit) before distribution 63 067 7 106 70 173 25 612Distribution of surplus ( 26 718 ) – ( 26 718 ) –Surplus / (Deficit) after distribution 36 349 7 106 43 455 25 612Movement in technical reserves 18 884 25 669 44 553 30 311

Balance of PTF at the beginning of the year 77 928 69 546 147 474 51 767Qard-e-Hasna – – – 39 783Balance of PTF at the end of the year (b) 133 161 102 321 235 482 147 473

(Restated)



166

42.3 Statement of contribution (Rupees ‘000)

Family Takaful Family Takaful (Restated)Investment Protection Aggregate Aggregate


Statutory Funds

Gross contributionRegular contribution individual policies

First Year 1 427 561 – 1 427 561 830 949Second Year 693 899 – 693 899 399 091

Subsequent year renewal 482 014 – 482 014 116 072Single contribution individual policies 329 572 – 329 572 893 062Group policies with cash values 1 494 – 1 494 1 832Group policies without cash values – 223 822 223 822 165 205Total gross contribution 2 934 540 223 822 3 158 362 2 406 211

42.3.1 Participants' Investment Fund

Allocated regular contribution 1 314 044 – 1 314 044 606 254Allocated single contribution 329 572 – 329 572 893 063Total allocated contribution 1 643 616 – 1 643 616 1 499 317

42.3.2 Participants' Takaful Fund

Allocated gross contribution 181 802 223 822 405 624 266 497Less: Retakaful contribution ceded

On individual life first year business 23 518 – 23 518 18 347On individual life second year business 13 170 – 13 170 11 433On individual life subsequent year business 12 830 – 12 830 3 691Commission from reinsurers ( 9 733 ) – ( 9 733 ) ( 7 752 )On group policies – 37 031 37 031 23 106

Total retakaful contribution ceded 39 785 37 031 76 816 48 825Net Risk Contribution of PTF 142 017 186 791 328 808 217 672

42.3.3 Shareholders' Sub-FundUnallocated regular contribution 1 109 122 – 1 109 122 640 397

42.2.3 Shareholders’ Sub-Fund (Rupees ‘000)



Statutory Funds

IncomeUn-allocated contribution 1 109 122 – 1 109 122 640 397 Net investment income 15 252 – 15 252 5 923 Wakalat-ul-Istismar - PIF 168 148 – 168 148 123 558 Wakala Fee - PTF 49 197 87 721 136 918 102 834 Total net income 1 341 719 87 721 1 429 440 872 712 Less: ExpenditureAcquisition costs 1 161 495 53 036 1 214 531 758 369 Administration expenses 192 634 8 614 201 248 156 866

1 354 129 61 650 1 415 779 915 235

Excess / (Shortfall) of income over expenditure ( 12 410 ) 26 071 13 661 ( 42 523 )

Add : Technical reserves at the beginning of the year – – – –Less : Technical reserves at the end of the year – – – –

– – – –

Surplus / (Deficit) transferred to shareholders' fund ( 12 410 ) 26 071 13 661 ( 42 523 )

Movement in technical reserves – – – –Transfer to Shareholder's Fund – ( 21 557 ) ( 21 557 ) ( 3 995 )Capital Contribution 12 809 – 12 809 90 116 Qard-e-Hasna – – – ( 39 783 )Retained earnings on other than participating business 33 528 533 34 061 30 244

Balance of shareholders' sub fund at the end of the year (c) 33 927 5 047 38 974 34 059

Balance of statutory funds at the end of the year (a+b+c) 3 559 726 107 368 3 667 094 2 367 355


167

42.4 Statement of Claims(Rupees ‘000)

42.5 Statement of Expenses

Acquisition costs(Rupees ‘000)



Statutory Funds



Statutory Funds

Claims under Individual Family Takaful 43 270 – 43 270 29 959

Claims under Group Family Takaful 220 84 089 84 309 60 822

Total Gross Claims 43 490 84 089 127 579 90 781

Gross Claims allocated as follows:

Participant's Investment Fund (PIF)

Surrenders / Partial withdrawals under Individual Policies 421 919 – 421 919 370 277

Participant's Takaful Fund (PTF)

Under Individual policies by death 43 270 – 43 270 29 959Under group policies by death 220 79 965 80 185 58 440Under group policies by event other than death – 4 124 4 124 2 382

Total gross claims under PTF 43 490 84 089 127 579 90 781

Less: Re-Takaful recoveries under PTF

On Individual policies 24 101 – 24 101 17 646Profit commission – – – 9 783On group policies – 14 105 14 105 584

24 101 14 105 38 206 28 013

Net Claims under PTF 19 389 69 984 89 373 62 768

Total Net Claims 441 308 69 984 511 292 433 045

Shareholders' Sub-Fund

Remuneration to insurance intermediarieson individual policies:- commission on first year contribution 619 556 – 619 556 369 735- commission on renewal contribution 90 029 – 90 029 39 138- commission on single contribution 8 512 – 8 512 30 448- override commission 91 720 – 91 720 59 644- other benefits to insurance intermediaries 271 822 – 271 822 157 153

1 081 639 – 1 081 639 656 118Remuneration to insurance intermediaries

on group policies:- commission 215 52 077 52 292 32 141- other benefits to insurance intermediaries – 587 587 414

215 52 664 52 879 32 555

Branch overheads 59 777 – 59 777 49 144Other acquisition costs

- policy stamps 18 996 151 19 147 12 799- Medical fees 868 221 1 089 415

Total acquisition cost 1 161 495 53 036 1 214 531 751 032



168

42.6 Statement of Investment Income (Rupees ‘000)



Statutory Funds

42.6.1 Participants' Investment Fund (PIF)Return on government securities / Sukuk 27 885 – 27 885 8 838Other fixed income securities 90 969 – 90 969 46 018Dividend income 26 915 – 26 915 18 590Amortization of (premium) / discount ( 342 ) – ( 342 ) –Loss on sale of investment ( 101 920 ) – ( 101 920 ) ( 14 472 )Unrealized gain / (loss) on investment 83 041 – 83 041 ( 165 738 )Net investment income of PIF (a) 126 548 – 126 548 ( 106 765 )

42.6.2 Participants' Takaful Fund (PTF)Return on government securities / Sukuk 1 586 3 689 5 275 97Other fixed income securities 4 615 – 4 615 2 090Profit on bank deposits 2 319 – 2 319 1 666Net investment income of PTF (b) 8 520 3 689 12 209 3 853

42.6.3 Shareholders' Sub-FundReturn on government securities / Sukuk 184 – 184 87Other fixed income securities 600 – 600 455Dividend income 177 – 177 184Amortization of (premium) / discount ( 2 ) – ( 2 ) –Loss on sale of investment ( 672 ) – ( 672 ) ( 143 )Unrealized gain / (loss) on investment 547 – 547 ( 1 637 )Profit on bank deposits 14 418 – 14 418 6 977Net investment income of shareholders' sub-fund (c) 15 252 – 15 252 5 923Net Investment Income (a+b+c) 150 320 3 689 154 009 ( 96 989 )

(Rupees ‘000)

Marketing and Administration expenses

Salaries and other benefits 85 639 3 101 88 740 71 301Travelling expenses 12 252 70 12 322 10 263Advertisements and publicity 11 284 767 12 051 1 016Printing and stationery 6 459 99 6 558 6 532Depreciation 14 822 316 15 138 14 513Amortization 1 851 – 1 851 1 524Rent rates and taxes 2 187 7 2 194 2 309Legal and professional charges 4 227 3 528 7 755 12 374Electricity gas and water 3 464 129 3 593 3 695Entertainment 3 778 94 3 872 3 173Vehicle running Expenses 855 15 870 1 458Office repairs and maintenance 8 085 10 8 095 6 472Appointed Actuary's fees 1 477 – 1 477 1 400Bank charges 2 240 6 2 246 1 741Postage telegrams and telephone 10 923 27 10 950 8 038Fees and subscription 3 215 37 3 252 2 551Annual supervision fee SECP 4 626 353 4 979 3 819Miscellaneous 15 250 55 15 305 12 082Gross Management Expenses 1 354 129 61 650 1 415 779 915 293

Fees charged to Policyholders – – – ( 59 )Net Management Expenses 1 354 129 61 650 1 415 779 915 234



Statutory Funds


(Rupees ‘000)

Shareholders’Fund

InvestmentLinked

BusinessConventional

BusinessPensionBusiness


IndividualFamily Takaful

Aggregate2018

Group FamilyTakaful

Statutory Funds

43. STATEMENT OF SOLVENCY

AssetsProperty and equipment 1 114 160 1 317 466 – – – – – 2 431 626Intangible assets 27 038 – – – – – – 27 038Investments Equity securities 211 997 32 273 865 80 451 5 079 – 1 148 408 – 33 719 800Government securities 2 196 429 49 012 707 1 415 946 15 331 5 478 234 132 92 844 52 972 867Debt securities 10 000 3 568 872 20 000 – – 480 000 – 4 078 872Term deposits – 13 550 000 125 100 – – 1 322 500 51 500 15 049 100Insurance & reinsurance / retakaful receivables – – 156 282 – – – 13 318 169 600Other loans and receivables 614 274 3 032 850 60 329 19 38 63 076 4 078 3 774 664Taxation - payments less provision 336 793 – – – – 467 467 337 727Prepayments – 71 523 1 630 3 7 8 019 – 81 182Cash & Bank 17 420 3 012 395 792 952 5 286 1 120 888 506 68 682 4 786 361

Total Assets (A) 4 528 111 105 839 678 2 652 690 25 718 6 643 4 145 108 230 889 117 428 837

In- admissible assetsas per following clause ofsection 32 (2) of InsuranceOrdinance, 200032 (2) (c) ( 432 414 ) – – – – – – ( 432 414 )32 (2) (u) ( 1 114 160 ) – – – – – – ( 1 114 160 )32 (2) (i) ( 27 038 ) – – – – – – ( 27 038 )32 (2) (b) ( 122 836 ) – – – – – – ( 122 836 )32 (2) (d) ( 16 179 ) – – – – – – ( 16 179 )32 (2) (h) – – ( 54 679 ) – – – ( 5 047 ) ( 59 726 )34 (2) (a) ( 4 428 ) ( 9 850 ) ( 3 697 ) ( 1 ) ( 3 ) – – ( 17 979 )

– – – – – – – –

Total of in-admissible assets (B) ( 1 717 055 ) ( 9 850 ) ( 58 376 ) ( 1 ) ( 3 ) – ( 5 047 ) ( 1 790 332 )

Total Admissible Assets (C=A-B) 2 811 056 105 829 828 2 594 314 25 717 6 640 4 145 108 225 842 115 638 505

Total Liabilities

Insurance Liabilities net of reinsurance recoveries – – – – – – – –Retirement benefit obligations – – – – – – – –Deferred taxation 185 678 – – – – – – 185 678Premium / contribution received in advance – 580 432 39 882 – – 84 788 9 316 714 418Insurance & reinsurance / retakaful payables – 67 147 59 770 – – 18 293 48 008 193 218Other creditors and accruals 63 289 2 357 282 1 130 142 1 260 5 163 458 100 66 198 4 081 434Taxation - provision less payment – – – – – – – –

Total Liabilities (D) 248 967 3 004 861 1 229 794 1 260 5 163 561 181 123 522 5 174 748

Total Net Admissible Assets (E=C-D) 2 562 089 102 824 967 1 364 520 24 457 1 477 3 583 927 102 320 110 463 757

Minimum Solvency RequirementShareholder's Fund 165 000 – – – – – – 165 000Policyholders Liability – 101 266 863 895 301 24 065 1 231 3 437 741 58 336 105 683 537Solvency Margin – 1 558 104 469 219 392 246 51 121 39 478 2 118 560

Excess / (Deficit) in Net Admissible Assets Over Minimum Requirements 2 397 089 – – – – 95 065 4 506 2 496 660

169


45. GENERAL

45.1 The effects of changes stated in note 5 have been accounted for retrospectively in accordance with IAS-8 'AccountingPolicies, Changes in Accounting Estimates and Errors', resulting in restatement of financial statements of prior periods.Resultantly, the cumulative effect of adjustments that arose as at 01 January 2018 and 01 January 2017 have beenpresented and disclosed as part of the statement of changes in equity, while the corresponding period adjustmentthrough other comprehensive income and profit or loss is restated and disclosed as part of the Statement of ComprehensiveIncome and Profit and Loss Account respectively. The Statement of Financial Position also presents the prior yearnumbers as restated, due to the said change.

45.2 Figures have been rounded off to the nearest thousand of rupees, unless otherwise stated.

45.3 Certain prior year's figures have been reclassified for the purpose of comparison. However, there are no majorreclassifications to report.

45.4 The Board of Directors has proposed a cash dividend of Rs.11.25/- per share (2017:Rs.11.25/- per share) amountingto Rs.1,125 million (2017: Rs.1,125 million) at its meeting held on 22 March 2019 for the approval of the membersat the Annual General Meeting to be held on 23 April 2019 These financial statements do not reflect this appropriationas explained in note 3.1.18.

46. DATE OF AUTHORIZATION FOR ISSUE

These financial statements were authorized for issue by the Board of Directors of the Company in their meeting heldon 22 March 2019.

Number of employees as at 31 December 2 229 1 709

Average number of employees as at 31 December 1 969 1 628

(Rupees ‘000)

31 December 31 December2018 2017

44. NUMBER OF EMPLOYEES





170


Statements under Section 52(2) ofInsurance Ordinance 2000

171


Statement by Appointed Actuary

I have reviewed the Balance Sheet and Revenue Account and related notes prepared by the Company for the year endingDecember 31, 2018. In my opinion:

(a) the policyholder liabilities included in the balance sheet have been determined in accordance with the provisionsof the Insurance Ordinance, 2000 (“the Ordinance”); and

(b) each statutory fund set up by the Company, after accounting for the capital contribution, complies with thesolvency requirements of the Ordinance.

OMER MORSHED, FCA, FPSA, FIAAppointed Actuary

Statement by Directors

(As per the requirement of section 46(6) and section 52(2)(c) of the Insurance Ordinance, 2000).

Section 46(6)

a. In our opinion the annual statutory account of EFU Life Assurance Ltd. set out in the forms attached to thestatement have been drawn up in accordance with the Ordinance and any rules made there under.

b. EFU Life Assurance Ltd. has at all times in the year complied with the provision of the Ordinance and the rulesmade there under relating to paid-up capital, solvency and reinsurance arrangements, and

c. As at December 31, 2018 EFU Life Assurance Ltd, continues to be in compliance with the provisions of theOrdinance and rules made there under relating to paid-up capital, solvency and reinsurance arrangement.

Section 52(2)(c)

d. In our opinion each statutory fund of EFU Life Assurance Ltd. complies with the solvency requirement of theInsurance Ordinance, 2000 and the Insurance Rules, 2017.


Chief Executive


Number of Shareholdings HoldingShareholders From To Shareholders

169 1 100 5 999 243 101 500 66 966 125 501 1 000 102 650 310 1 001 5 000 858 949

74 5 001 10 000 538 618 26 10 001 15 000 329 054 23 15 001 20 000 393 053 14 20 001 25 000 321 841

5 25 001 30 000 137 529 9 30 001 35 000 285 885 3 35 001 40 000 111 867 1 40 001 45 000 41 837 6 45 001 50 000 294 715 4 50 001 55 000 209 763 5 55 001 60 000 283 996 2 60 001 65 000 126 900 2 65 001 70 000 135 104 5 75 001 80 000 389 537 3 80 001 85 000 250 553 1 90 001 95 000 92 400 3 95 001 100 000 300 000 1 100 001 105 000 103 997 2 105 001 110 000 214 061 1 120 001 125 000 125 000 1 125 001 130 000 128 469 2 130 001 135 000 265 700 1 140 001 145 000 142 402 1 160 001 165 000 165 000 1 165 001 170 000 167 000 1 175 001 180 000 176 063 1 215 001 220 000 219 600 1 220 001 225 000 225 000 1 225 001 230 000 225 617 1 245 001 250 000 250 000 1 270 001 275 000 270 155 1 330 001 335 000 332 000 1 345 001 350 000 349 865 1 405 001 410 000 406 123 1 495 001 500 000 500 000 1 540 001 545 000 544 571 1 585 001 590 000 587 600 1 675 001 680 000 676 470 3 830 001 835 000 2 502 000 1 945 001 950 000 948 229 1 950 001 955 000 952 621 1 1 195 001 1 200 000 1 196 300 1 1 285 001 1 290 000 1 288 835 1 1 290 001 1 295 000 1 292 518 1 3 480 001 3 485 000 3 482 596 1 3 515 001 3 520 000 3 519 981 1 10 000 001 10 005 000 10 000 463 1 20 045 001 20 050 000 20 047 708 1 43 415 001 43 420 000 43 416 840

1 069 100 000 000

Pattern of Shareholdingas at 31 December 2018


172


173

Associated Companies, Undertakings and Related Parties

EFU General Insurance Ltd. 43,416,840

Jahangir Siddiqui & Co. Ltd. 20,047,708

Energy Infrastructure Holding (Pvt) Ltd 587,600

JS Bank Ltd. 1,196,300

Trustee EFU Life Assurance Ltd., Staff Provident Fund 760

6 65,249,208 65.25

Mutual Funds

ICP A/C. MR. NOMAN FAROOQ 471

ICP A/C. COL M.A. SHEIKH 1,331

IDBL (ICP UNIT) 35

CDC - TRUSTEE APF-EQUITY SUB FUND 2,600

4 4,437 0.00

Directors, CEO, & their spouses and minor children

Rafique R. Bhimjee 3,512,796

Saifuddin N. Zoomkawala 500,000

Taher G. Sachak 525,928

Muneer R. Bhimjee 3,519,981

Hasanali Abdullah 137,146

Heinz Walter Dollberg 588

Kamal Afsar 501

Syed Salman Rashid 10,000,463

Ali Raza Siddiqui 500

Naila Bhimjee 1,288,835

Lulua Saifuddin Zoomkawala 55,432

Rehana Salman 142,402

16 19,684,572 19.68

Executives 6 152,871 0.15

Banks, Finance Institutions 10 510,156 0.51

Non-Banking Finance Institutions, Insurance Co. 3 42,100 0.04

Individuals / Others 1,018 10,618,316 10.62

Foreign Investors (repatriable basis) 6 3,738,340 3.74

Total 1,069 100,000,000 100.00

Shareholders holding 5 % or more voting interest

EFU General Insurance Ltd. 43,416,840 43.42

Jahangir Siddiqui & Co. Ltd. 20,047,708 20.05

Syed Salman Rashid 10,000,463 10.00

Information as required under the Code of Corporate Governance

Categories of Shareholders Shareholders Shares held Percentage


Glossary of Important Terms


174

Acquisition cost Expenses incurred by the company for acquisition of Insurance/Takaful business. These mainlyinclude expenses relating to the distribution channels.

Administration Expenses Expenses of the company other than the acquisition cost.

Authorized Share Capital The maximum value of shares that a Company can issue.

Balance Sheet An accounting term referring to a listing of a company's assets, liabilities and surplus as of aspecific date.

Cash Value The cash value of an insurance policy or Takaful contract, also called the cash surrender valueor surrender value, is the cash amount offered to the policyholder/participant by the lifeinsurer/Takaful operator upon cancellation/maturity of the insurance policy or Takaful contract.

Claims The amount payable under a contract of insurance/Takaful arising from occurrence of an insuredevent.

Commission Remuneration to an insurance/Takaful intermediary for services such as selling and servicingof insurance/Takaful products

Contribution Monetary contribution paid as lump sum or periodically by a participant to a Takaful operatorfor the purpose of obtaining Takaful Benefits

Death Claim Insurance/Takaful claims paid to beneficiaries when the insured person/participant dies duringthe period of insurance/Takaful.

Disability Claim Insurance/Takaful claims paid to the insured person/participant in case of a defined disabilityduring the periods of insurance/Takaful

Dividend Yield A financial ratio that shows how much a company pays out in dividends each year relative toits share price. In the absence of any capital gains, the dividend yield is the return on investmentfor a stock.

Earnings per Share The portion of the company's profit allocated to each outstanding share of common stock.Earnings per share serves as an indicator of a company's profitability.

Gross Contribution Total contribution of the Operator for all takaful lines of business including Individual FamilyTakaful new business, Individual Family Takaful renewal contributions, Group Family Takafulbusiness and Single Contribution.

Gross Premium Total premium of the company for all lines of business including individual life new business,individual life renewal premium, Group business and single premium

Maturity Claim Insurance/Takaful claim paid to the insured person/Participant in case of maturity of the insurancepolicy or Takaful contract.

Net Contribution Gross contribution less the retakaful contribution ceded.

Net Premium Gross premium less the reinsurance premiums ceded

Outstanding Claims Claims incurred and reported but not paid as on the date of the financial statements

Paid-up capital The amount paid or contributed by shareholders in exchange for shares of a company's stock.

Participants A person who participates in a Takaful scheme and to whom Takaful Contract is issued

Participants' Investment The unit linked investment fund in which a proportion of the gross contribution is invested.Fund (PIF)

Participants' Takaful A fund which is a risk pool for Takaful participants. It is a sub fund of a statutory fund intoFund (PTF)/Waqf Fund which participant's risk related contributions are paid and risk related benefits are paid out.


175

PAT Gross profit for the year net of the tax for the year, as mentioned in the Profit and Loss Account.

Policyholders’ liabilities It is the value of the obligation of the insurer to its policyholders. A major portion of this ispolicyholder reserves, which is the amount representing actual or potential liabilities kept byan insurer to cover policyholders benefits.

Premium Financial cost of obtaining an insurance cover, paid as a lump sum or in installments during theduration of the policy

Qard - e - Hasna In case of a deficit in Waqf Fund, Takaful Operator extends a Qard-e-Hasna (interest free loan)to PTF to cover the deficit. This Qard is repaid to the Takaful Operator from future surplusesin the PTF.

Reinsurance Premium Reinsurance premiums are premiums paid to other insurance companies pursuant to the reinsuranceagreements mainly for the purpose of diversification of risks undertaken by the insurer.

Retakaful Contribution Retakaful contributions are contributions paid to other Takaful operators pursuant to theretakaful agreements mainly for the purpose of diversification of risks undertaken by the TakafulOperator

Retention The part of insurance/Takaful risk that the insurer/Takaful Operator retains before passing onthe excess to a reinsurer/Retakaful.

Return on Equity Return on equity measures a company's profitability by revealing how much profit a companygenerates with the money shareholders have invested. ROE is expressed as a percentage andcalculated as: Return on Equity = Net Income/Shareholder's Equity

Shareholders' Equity This is the total of Paid-up capital, accumulated surplus and any general reserves.

Shareholders' Fund A fund that is established in the records of a life insurance/Takaful Operator and which containsthat part of the assets and liabilities of a life insurer/Takaful operator which is attributed to itand is not attributed to any statutory fund maintained by that life insurer/Takaful Operator

Solvency Having sufficient assets-capital, surplus, reserves-and being able to satisfy financial requirementsto be eligible to transact insurance/Takaful business and meet liabilities.

Statutory Fund A fund that is established in the records of a life insurer/ Takaful Operator and which relatessolely to the life insurance/Takaful business of that life insurer/takaful operator or a particularpart of that life insurance/Takaful business

Surplus in Waqf Fund The excess of assets over liabilities in Waqf Fund/Participants' Takaful Fund (PTF). Negativesurplus would be named as 'Deficit' in Waqf Fund.

Surrender Claim Insurance/Takaful claims paid to the insured person/participant in case an insurance policy orTakaful contract is terminated before end of its term

Underwriting The process of assessing and selecting risks for insurance/Takaful and classifying them accordingto their degrees of insurability so that and appropriate price may be assigned. The process alsoincludes rejection of those risks that do not qualify.

Net Risk Contribution of PTF The risk related portion of the Participant's contribution paid into the PTF to avail Takaful coverfrom the PTF.

Takaful Operators Fund A Fund setup by a Window Takaful Operator which shall undertake all transactions which theOperator undertakes other than those which pertains to Participants Takaful Fund/ParticipantInvestment Fund setup for the Window Takaful Operations.

Wakalah Fee The fee that takaful operator charges for the management of Waqf Fund or acting as a Wakeel(Manager of PTF).

Window Takaful Operator A Registered Insurer authorized under Takaful Rules, 2012 to carry out Window TakafulOperations in addition to Conventional Insurance Business.


Group Benefits &Bancassurance - Offices


176

Group Benefits - Offices Bancassurance - Offices

Karachi

37-K, Block 6, PECHS, KarachiPhone: (021) 34541740, 38652300-2305Husein Sachak, Director - BancassuranceAli Asghar Khandwala, Deputy Head - BancassuranceRashib Shaikh, National Sales Head, National Bank of PakistanFarukh Hassan, Head of Marketing & Development

Lahore

Office No.202, 203, Al-Hafeez Heights, 2nd Floor65-D-1, Gulberg 2, Lahore. Phone: (042) 38102600-615Fayyaz Mehmood Tahir,National Sales Head, United Bank LimitedZubair Zahid, National Sales Head - BancassuranceHafiz Muhammad Babar Rafique, Regional HeadSyed Zamin Ali, Regional Head - BancassuranceShafqat Ali, Regional Head - Bancassurance

Islamabad

3rd Floor, Al Malik Centre70- W, Jinnah Avenue, Blue Area, IslamabadPhone: (051) 8023215, 8023222, 8023234Tahir Sultan, National Sales Head, Allied Bank LimitedMariam Mani, National Sales Head, Askari Bank LimitedKamran Hassan, Regional Head - BancassuranceKashif Mansoor Ali Khan, Regional Head - Bancassurance

Faisalabad

25 Waheed Center, Kohinoor Town,College Road, Opp. Hockey Stadium, FaisalabadPhone: (041) 8503370,71,72,73 / 8503338, 39Ejaz Ahmad Baig, Area Sales Head

Peshawar

2nd Floor, NWR Plaza, Khyber SupermarketNear Qayyum Stadium, Bara Road, Peshawar CanttPhone: (091) 5252129, 5606002Fawad Farooqui, Regional Head - Bancassurance

Jhelum

Karim Arcade, Machine Mohalla No.3, JhelumPhone: (0544) 621017Khawar Mehmood, Area Sales Head - Bancassurance

Multan

2nd Floor, Golden Heights Plaza, Opp. High Court,Multan Cantt. Phone: (061) 4587120, 30,40,50Muhammad Azeem, Area Sales Head - Bancassurance

Gujranwala

Office No 13/1, 2nd Floor, Bhutta Center, GujranwalaPhone: 0301-6626220Ammar Yasir, Area Sales Head - Bancassurance

Karachi

EFU Life HousePlot No. 112, 8th East Street, Phase-I, DHA, KarachiPhone: (021) 111-338-111

Hasan Aamir, Regional Sales DirectorS. Afsar Raza, Chief Marketing ManagerNaveed-ul-Haq Bhatti, Group Marketing ManagerAnila Hassan Riaz, Chief Marketing ManagerSyed Amir Iqbal, Marketing ManagerAdeel H. Jaffery, Director (Group Projects)Syed Ahmed Ali Jafry, Senior Marketing Executive

Lahore

33/2, Block B-1, Gulberg III, LahorePhone: (042) 38102625

S.A.R. Zaidi, Executive DirectorFazal Mehmood, Regional Sales DirectorZaheer Aslam, Regional Marketing ManagerFaisal Masud, Group Marketing ManagerMubashar Ahmed, Chief Marketing ManagerTasleem Iqbal, Marketing ManagerSaad Farooqi, Senior Marketing ExecutiveTahir Mahmood, Senior Marketing Executive

Islamabad

Office No. 6, 2nd Floor, Yaseen Plaza74-W, Jinnah Avenue, Blue Area, IslamabadPhone: (051) 8023200-06

Noor-ur-Rehman, Regional Marketing ManagerRizwan Bajwa, Marketing ManagerRao Asif Khan, Senior Marketing ExecutiveMuhammad Nauman, Senior Marketing Executive

Faisalabad

2nd Floor, Ajmal Centre 289Batala Colony, FaisalabadPhone: (041) 5253450

Imran Yaqub, Marketing Manager

Multan

1st Floor, Rajput Commercial CentreTareen Road, Near Gull Tax Showroom, MultanPhone: (061) 8026200, (061) 8026209

Zafar Abbas Chughtai, Marketing Manager


Individual Life - Offices

177

Abbottabad Branch

Alfatah Shoping Center, Opposite RadioStation, Jhungi, Abbottabad.0992-341978, 0992-403697, 0992-334254Waqas Khan, Senior Unit Manager

Ahmed Pur East Branch

Opposite Canal Rest House,Katchery Road, Ahmed Pur East.062-2273039, 062-2273049Mazhar Mahmood Khan,Branch Manager

Ali Pur Chatha Branch

1st Floor, Haji Shair Muhammad Heights,Gujranwala Road, Ali Pur Chatha Distt.,Gujranwala.055-6821092, 055-6332690Muhammad Ishfaq, Senior Unit Manager

Arifwala Branch

EFU Life Assurance, M-Block,Pakpattan Road, Arifwala.045-7830480, 045-7830478, 045-7830479Ahsaan Talib, Branch Manager

Astore Branch

Brigade Road, Main Bazaar,Astore.0355-5400855Ijlal Hussain, Senior Unit Manager

Attock Branch

1st Floor, Sheikh Jaffar Plaza,Siddiqui Road, Attock City.057-2703338, 057-2602067,057-2701957, 057-2702338Amjid Hussain Shah, Branch Manager

Bagh AK Branch

Near Bagh International Hotel,2nd Floor of Amaar Hospital,Distt. Bagh, AK.5823445367S.M. Ahtsham-ul-Haq Gillani,Senior Unit Manager

Bahawal Nagar Branch

Ground Floor, Paradise Hotel,Opp. City Lab, Chishtian Road,Bahawal Nagar.0632-277247Altaf Hussain, Senior Branch Manager

Bahawalpur Branch

88-A, Noor Mahal Road,Near Iqbal Hospital, Bahawalpur.062-3006120Mian M. Afzal, Branch Manager

Bahawalpur Cantt Branch

88-A, Noor Mahal Road,Near Iqbal Hospital, Bahawalpur.062-3006120Junaid Masood, Regional ManagerAbdul Jabbar, Group Manager

Bahawalpur City Branch

88-A, Noor Mahal Road,Near Iqbal Hospital, Bahawalpur.062-3006120Naeem Akhter Chaudhry,Senior Branch Manager

Bahawalpur Garden Branch

88-A, Noor Mahal Road,Near Iqbal Hospital, Bahawalpur.062-3006120Muhammad Sajjad, Senior Unit Manager

Baltistan Branch

Anchan Plaza, 2nd Floor,Hussani Chowk, Main Bazar,Sakardu.05815-450941Mubashir Hassan, Senior Branch Manager

Bhakkar Branch

1st Floor, Ubaid Plaza,Near MCB Bank, Behal Road, Bhakkar.0453-515074Muhammad Naeem Tariq,Senior Unit Manager

Bhimber Branch

Heaven Palace, Basement Sultan Plaza,Meerpur Chowk, Bhimber, AJK.0344-6263378M. Rizwan Sadiq, Senior Unit Manager

Burewala Branch

Upper MCB Bank,Main Multan Road, Burewala.0673-771338Rafique Ahmad, Assistant Branch Manager

Burewala City Branch

Upper MCB Bank,Main Multan Road, Burewala.0673-771338Abu Bakar, Senior Unit Manager

Chichawatni Branch

Plot No. 901, Block-5, 1st Floor,Al-Haram Center, Wali Jutt Chowk,Chichawatni.0405-8015640Muddassar Meraj, Branch Manager

Chilas Branch

Near Karakuram Cooperative Bank,Chilas.0335-5511532Manzoor Ahmed, Senior Unit Manager

Chishtian Branch

13-Gajyani Road, Chishtian.063-2301741-3, 063-2500299,063-2507334, 063-2507332Muhammad Amin,Assistant Branch Manager

Chowk Munda Branch

Multan Road, Upper StoreyHusnain Honda Center.0344-2968580.Syed Rizwan Ali Shah, Assistant Unit Manager

Dadu Branch

Near Ali Honda Showroom,Dadu.0300-2564390Zulfiqar Ali, Senior Unit Manager

Daharki Civic Branch

Near Main G.T. Road,Daharki, District Ghotki.0723-204160Muhammad Nadeem,Branch Manager

Daur Branch

Near UBL Bank,Moro Road, Daur, Distt.SBA.0302-3240521Muhammad Zubair,Mumtaz Ali Brohi, Senior Unit Manager

Depalpur Branch

Supper Market,Okara Road, Depalpur.0333-6991991Ahmad Kamran Javed,Unit Manager

Dera Allahyar Branch

Main Quetta Road,Dera Allahyar.0740-510636Jan Muhammad,Senior Branch Manager

Dera Ghazi Khan Branch

Rehmania Street, Faridabad Colony,Block 18, Ground Floor,Plot No 1264, Jampur Road, Dera Ghazi Khan.0642-468116, 0642-471056-7Mukhtar Tabbasum, Branch Manager

Dera Ismail Khan Branch

1st Floor, Najeeb Centre,East Circular Road, Dera Ismail Khan.0966-734001-02,03,04,05,06Mujahid Khan, Assistant Branch Manager

Dera Murad Jamali Branch

Near Usta Muhammad Vegun Stand,Main Quetta Road, Dera Murad Jamali.0346-8474122Liaquat Ali, Assistant Branch Manager

Digri Branch

House No. 62-A, Nazeer Shah Colony,Digri District, Mirpurkhas.0332-2661053Tassawar Ali, Assistant Branch Manager



178

Dinga Branch

1st Floor, Fazil Plaza, Dalyan Chowk,Dinga, Tehsil Kahrian, Distt Gujrat.0537-400338, 0537-402338,0537-404338, 0537-403399,Qaisar Abbas, Senior Branch Manager

Dokri Branch

Near Engro Milk Ice Factory,Ajaz Ali Theem SB House No.32,Badha Road, Dokri District, Larkana.0333-3208981Shahzado Kosar Ali, Branch Manager

Faisalabad Central Branch

Plot No. C-6, 2nd Floor, S-T Plaza,Koh-e-Noor City, Faisalabad.041-5003420Mohammad Zahid Bashir,Branch Manager

Faisalabad Chenab Branch

2nd Floor, Ajmal Centre,289, Batala Colony, Faisalabad.041-5253450Tajamal Khan, Group ManagerSikandar Arshad, Zonal Manager

Faisalabad City Branch

2nd Floor, Ajmal Centre,289, Batala Colony, Faisalabad.041-5253450Syed Basharat Ali, Branch Manager

Fateh Pur Branch

Old Grain Market, Aasi Plaza,Fateh Pur, Tehsil Karor Lal,Esan District, Layyah.0606-841238Ghulam Abu Talib, Assistant Branch Manager

Ghotki Branch

1st Floor, Shadani Shopping Center,Opposite Police Station, Ghotki.072-3680352, 072-3680351,072-3684107, 072-3682423Mahesh Kumar, Senior Branch Manager

Gilgit Baltistan Branch

1st Floor, Dar Plaza,Nabi Bazar, Gilgit.05811-459874Faiz Ahmed Khan, Group Manager

Gilgit Baltistan City Branch

1st Floor, Dar Plaza,Nabi Bazar, Gilgit.05811-459874Mohammad Nazir, Senior Unit Manager

Gujranwala Branch

Noor Plaza, 1st Floor,Khokharki Sialkot Road,Opp. Saint Peter School, Gujranwala.055-3734104Arfan Yousaf, Branch Manager

Gujranwala Hawks Branch

Noor Plaza, 1st Floor,Khokharki Sialkot Road,Opp. Saint Peter School, Gujranwala.055-3734104Arfan Yousaf, Branch Manager

Gujrat Branch

Dhakkar Plaza,Rehman Shaheed Road, Gujrat.053-20166160Faisal Tahir, Regional ManagerAli Rizwan, Group Manager

Gujrat City Branch

Dhakkar Plaza,Rehman Shaheed Road, Gujrat.053-20166160Majid Navid Akhter,Branch Manager

Gwadar Branch

Ashraf Market,Airport Road, Gwadar.0334-2467685Akhtar Ali, Senior Unit Manager

Hafizabad Branch

1st Floor, Upper Al Baraka Bank,Ali Pur Road, Distt. Hafizabad.054-7525639, 054-7524639,054-7523693, 054-7540639,Hafiz Muhammad Amjad,Senior Unit Manager

Hala Branch

Dargah Road, Opp Old HBL Bank,New Hala.223331275Nazia, Assistant Unit Manager

Haroonabad Branch

Milad Chowk,Baldia Road, Haroonabad.0632253592, 0632253290-1Muhammad Kashif, Group Manager

Hub Chowki Branch

Main R.C.D. Road, Hub Chowki,Distric Lasbella, Hub Chowki.0853302115, 085364098Lal Bakhsh Baloch,Assistant Branch Manager

Hunza Nagar Branch

1st Floor, Nazar Shah Plaza,Hospital Chowk, Ali Abad, Hunza.058-13455172, 058-455272Sajjad Haider, Assistant Branch Manager

Hyderabad Autobahn Branch

Commercial Hall, Blue Sky Extension(Breeze Tower) Commercial Hall,2nd Floor, Autobahn, Hyderabad.022-8334260Bhesham Kumar, Group Manager

Hyderabad Cantt Branch

1st Floor, Plot No.C-10,Railway Cooperative Housing Society,Near McDonald's Autobahn, Hyderabad.022-8334200Zaheeruddin Babar, Group Manager

Hyderabad City Branch

Commercial Hall, Blue Sky Extension(Breeze Tower) Commercial Hall,2nd Floor, Autobahn, Hyderabad.022-8334260Dileep Kumar Nenwani, Group Manager

Hyderabad Galaxy Branch

Commercial Hall, Blue Sky Extension(Breeze Tower) Commercial Hall,2nd Floor, Autobahn, Hyderabad.022-8334260Aasma, Branch Manager

Hyderabad Mehran Branch

1st Floor, Plot No.C-10,Railway Cooperative Housing Society,Near McDonald's Autobahn, Hyderabad.022-8334200Syed Sajid Ali, Assistant Branch Manager

Hyderabad Model Branch

Commercial Hall, Blue Sky Extension(Breeze Tower) Commercial Hall,2nd Floor, Autobahn, Hyderabad.022-8334260Durdana Khan, Senior Branch Manager

Hyderabad New City Branch

Office No.8,9, 2nd Floor,Shelter Shopping Mall,Saddar Cantt, Hyderabad.022-2720550-1,2,3Syed Sabir, Assistant Branch Manager

Hyderabad Prime Branch

1st Floor, Plot No. C-10,Railway Cooperative Housing Society,Near McDonald's Autobahn, Hyderabad.022-8334200Mohammad Farhan Ali, Branch Manager

Hyderabad Royal Branch

Commercial Hall, Blue Sky Extension(Breeze Tower) Commercial Hall,2nd Floor, Autobahn, Hyderabad.022-8334260Ghulam Mustafa Chandio,Branch Manager


179

Islamabad Branch

Al-Malik Centre, 2nd Floor,70-W, Jinnah Avenue (Blue Area),Islamabad.051-8023250Younis Butt, Assistant Sales DirectorM. Atif Khan, Group ManagerMuhammad Kashif Khan,Senior Branch Manager

Islamabad Civic Branch

Al-Malik Centre, 2nd Floor,70-W, Jinnah Avenue (Blue Area),Islamabad.051-28023250Muhammad Asif Sagheer,Branch Manager

Jacobabad Branch

1st Floor, National Autos,Main Quaid-e-Azam Road, Jacobabad.072-2650156, 072-2651876, 072-2654931Faqir Muhammad Shaikh,Group Manager

Jand Branch

Office No.4, 1st Floor, Noor Plaza,Makhad Road, Ghosia Chowk,Jand, Dist. Attock.0572-622166Uzair Ali, Senior Unit Manager

Jhang Branch

Upper Storey Al-Hamd Zarai Corporation,Near Burji Chowk, Toba Road,Jhang Saddar.0300-6707312Muhammad Salman Zaheer, Branch Manager

Jhelum Branch

Karim Arcade,M.M. No.03, Jada Road, Jhelum.0544-800080Nadeem Shakeel, Senior Unit Manager

Kandhkot Branch

Shah Mohammad Malik Plaza,Office No.3, Opposite Honda Showroom,Mandi Road, Kandhkot.0722-570685Adnan M. Samejo, Senior Branch Manager

Karachi Cantt Branch

Nafees Arcade, 3rd Floor,Off. No.301, Opp. Askari Park,University Road, Karachi.021-38652520Reeta, Senior Branch Manager

Karachi Capital Branch

Al-Samad Tower, 604-605,Plot No. SB-33, Block 13-B,Opposite Bait-ul-Mukarram Masjid,Gulshan-e-Iqbal, Main University Road,Karachi.021-38652710Ghulam Sarwar, Branch Manager

Karachi Central Branch

37-K, Block-6, PECHS, Karachi.021-38652300Shahjahan, Assistant Sales DirectorSyed Arif Raza, Zonal Manager

Karachi City Branch

37-K, Block-6, PECHS, Karachi.021-38652300Malik Zafarullah Khan, Branch Manager

Karachi Classic Branch

37-K, Block-6, PECHS, Karachi.021-38652300Ahmed Anwer Vellani,Senior Unit Manager

Karachi Crescent Branch

37-K, Block-6, PECHS, Karachi.021-38652300Faisal Maniar, Branch Manager

Karachi Faisal Branch

37-K, Block-6, PECHS, Karachi.021-38652300Shah Zaman Shaikh,Assistant Branch Manager

Karachi Falcon Branch

37-K, Block-6, PECHS, Karachi.021-38652300Adil Khan Khilji,Assistant Branch Manager

Karachi Galaxy Branch

Room No. 620, 6th Floor,EFU House, M.A.Jinnah Road, Karachi.021-32203381Jagdeesh Kumar Pahooja, Group Manager

Karachi Garden Branch

F-2, 1st Floor, 67/A, APWA Complex,Garden Road, Karachi.021-32237678Shehzad Pyarali, Senior Branch Manager

Karachi Gulshan Branch

Nafees Arcade, 2nd Floor,Off. No.201, Opp. Askari Park,University Road, Karachi.021-38652520Abdul Wahab Shaikh,Senior Branch Manager

Gulshan-e-Hadeed Branch

1st Floor, C-15, Phase-I,Gulshan-e-Hadeed, Bin Qasim, Karachi.021-34721574-76, 021-34715070-71,72Ghulam Shabbir Mirani,Senior Branch Manager

Karachi Indus Branch

Al-Samad Tower, 604-605,Plot No. SB-33, Block 13-B,Opposite Bait-ul-Mukarram Masjid,Gulshan-e-Iqbal, Main University Road,Karachi.021-38652710S.Shahid Hussain Zaidi, Group Manager

Karachi Karsaz Branch

Nafees Arcade, 3rd Floor,Off. No.301, Opp. Askari Park,University Road, Karachi.021-38652520Zahoor Ahmed Khuhro, Zonal Manager

Karachi Mehran Branch

37-K, Block-6, PECHS, Karachi.021-38652300S. Samar Raza Zaidi, Senior Branch Manager

Karachi Merewether Branch

37-K, Block-6, PECHS, Karachi.021-38652300Rehan Anwar, Zonal Manager

Karachi Metropolitan Branch

37-K, Block-6, PECHS, Karachi.021-38652300Abdul Ghafoor Mashori,Branch Manager

Karachi Model Branch

Office No M1, M2, SC-13 Noor Square,Main University Road,Opp old Sabzi Mandi, Karachi.021-38651601Bheroo Mal, Branch Manager

Karachi New City Branch

37-K, Block-6, PECHS, Karachi.021-38652300Rabnawaz Ghumro, Senior Branch ManagerShamsuddin Shaikh, Regional Manager

Karachi Paradise Branch

F-2, 1st Floor, 67/A,APWA Complex, Garden Road,Karachi.021-32237678Khawar Ahmed, Branch Manager

Karachi Pioneer Branch

37-K, Block-6, PECHS, Karachi.021-38652300Nasir Rashid Bhatti, Group Manager



180

Karachi Platinum Branch

37-K, Block-6, PECHS, Karachi.021-38652300Irfan Iqbal, Senior Branch Manager

Karachi Royal Branch

37-K, Block-6, PECHS, Karachi.021-38652300Shahzad Hanif, Branch Manager

Karachi Shaheen Branch

Office No M1, M2,SC-13 Noor Square Main University Road,Opp old Sabzi Mandi, Karachi.021-38651601Muzaffar Ahmed Bughio,Senior Branch Manager

Karachi Star Branch

Plot No. 23/F, 2nd Floor,Commercial Area, Muhammad AliCooperative Housing Society, Karachi.021-38652478Khuram Sultan Ali,Senior Unit Manager

Karachi West Branch

Plot No. 23/F, 2nd Floor,Commercial Area, Muhammad AliCooperative Housing Society, Karachi.021-38652478Nadeem Alam Ansari, Senior Branch Manager

Khairpur Branch

Near Bank AL Habib,Kutchery Road, Khairpur.0243-554016, 0243-714336,0243-714337, 0243-714330Jamaluddin, Senior Branch Manager

Khanpur City Branch

House No. 697, Model Town B,Near DSP Office, Khanpur.0685955808,0685576809,0685577809Waqar Habib, Branch Manager

Khaplu Branch

Near GPO, Main Bazar, Khaplu.0346-9589093Muhammad Ayaz Ali,Branch Manager

Kharian Branch

Block-6/B, Al Muqeet Center,G.T. Road, Kharian.053-7600149, 053-7602660-2Muhammad Imran,Senior Unit Manager

Kharian City Branch

Block-6/B, Al Muqeet Center,G.T. Road, Kharian.053-7600149, 053-7602660-2Raja Irfan Qadeer, Branch Manager

Khushab Branch

NBP Road, ADALAT Manzil,Upper Storey, First Micro Finance Bank Ltd.Jaahurabad, Distt. Khushab.0300-6036810Muhammad Rafique, Assistant Unit Manager

Kot Addu Branch

Mini By Pass, Eid Gah Road, Near MianMohsin Gali, Kot Addu.0662239122Fazal Abbas, Senior Unit Manager

Kot Ghulam Muhammad Branch

Opposite Town Committe,New Car Stand, Kot Ghulam Muhammad.923003970340Veermoon Mal, Branch Manager

Kotla A.A. Khan Branch

Near Fruit Mandi, Bhimber Road,Kotla A.A. Khan.0537575520-21,22Muhammad Saeed, Branch Manager

Kotli Branch

2nd Floor, Rathore Plaza,Rawalpindi Road, Opposite Gulistan Hotel,Kotli, Azad Kashmir.0582-6445621Sardar Zakaullah Khan,Group Manager

Kotli City Branch

First Floor, MCB,Altaf Fazal Plaza, Kotli AK.058-26448606Gul Nazar, Branch Manager

Kotli Prime

2nd Floor, Rathore Plaza,Rawalpindi Road, Opposite Gulistan Hotel,Kotli, Azad Kashmir.0582-6445621Adnan Nisar, Branch Manager

Lahore Cantt Branch

Office No. U GR-01, Mezzanine Floor,Rehman Business Centre, 32-B-III, Lahore.042-35245722, 042-35772605M. Naeem Butt, Branch Manager

Lahore Capital Branch

18-C, 3rd Floor, Commercial Zone,Liberty Market, Gulberg-III, Lahore.042-35711273Iftikhar Hassan, Senior Branch Manager

Lahore Central Branch

18-C, 3rd Floor, Commercial Zone,Liberty Market, Gulberg-III, Lahore.042-35711273Imran Saleem, Branch Manager

Lahore City Branch

18-C, 2nd Floor, Commercial Zone,Liberty Market, Gulberg-III, Lahore.042-32303500Shahid Iqbal Bhatti, Zonal Manager

Lahore Civic Branch

Office No: U GR-01, Mezzanine Floor,Rehman Business Centre, 32-B-III, Lahore.042-35245722, 042-35772605Mahmood Ahmed, Senior Branch Manager

Lahore Crescent Branch

18-C, 2nd Floor, Commercial Zone,Liberty Market, Gulberg-III, Lahore.042-38003550Malik Azhar, Senior Branch Manager

Lahore Defence Branch

2nd Floor, Garden Heights,Abick Block, New Garden Town, Lahore.042-38003150Mian Kashif Naseer, Senior Branch Manager

Lahore Fort Branch

18-C, 2nd Floor, Commercial Zone,Liberty Market, Gulberg-III, Lahore.042-38003550Moazzam Bashir Kamal,Branch Manager

Lahore Garden Branch

2nd Floor, Garden Heights,Abick Block, New Garden Town, Lahore.042-38003150Kh. Sohaib Mumtaz, Senior Unit Manager

Lahore Gulberg Branch

18-C, 1st Floor, Commercial Zone,Liberty Market, Gulberg-III, Lahore.042-35789551Syed Mehdi Raza Zaidi, Branch Manager

Lahore Jouhar Branch

18-C, 1st Floor, Commercial Zone,Liberty Market, Gulberg-III, Lahore.042-35789551Muhammad Amjad,Assistant Branch Manager

Lahore Metropolitan Branch

18-C, 1st Floor, Commercial Zone,Liberty Market, Gulberg-III, Lahore.042-35789551Zahid Ali Raza, Group ManagerImtiaz Hussain, Zonal Manager

Lahore Model Branch

18-C, 1st Floor, Commercial Zone,Liberty Market, Gulberg-III, Lahore.042-35789551Shoukat Ali, Branch Manager


181

Lahore Pioneer Branch

18-C, 3rd Floor, Commercial Zone,Liberty Market, Gulberg-III, Lahore.042-35712632Syed Abuzer Gilani, Branch Manager

Lahore Prime Branch

18-C, 1st Floor, Commercial Zone,Liberty Market, Gulberg-III, Lahore.042-35789551Ishfaq Hussain Mughal,Assistant Branch Manager

Lahore Ravi Branch

Office No. U GR-01, Mezzanine Floor,Rehman Business Centre, 32-B-III, Lahore.042-35245722, 042-35772605Tanveer Ahmed Khan, Zonal Manager

Lahore Shadman Branch

18-C, 1st Floor, Commercial Zone,Liberty Market, Gulberg-III, Lahore.042-35789551Akbar Ali, Assistant Branch Manager

Lahore Shaheen Branch

2nd Floor, Garden Heights,Abick Block, New Garden Town, Lahore.042-38003150Shahid Lazir, Senior Unit Manager

Lahore Star Branch

18-C, 2nd Floor, Commercial Zone,Liberty Market, Gulberg-III, Lahore.042-38003550Kashif Hussain Malik, Branch Manager

Lalamusa Branch

Shayan Center, 1st Floor,G.T. Road, Lalamusa.053-7515656Adnan Ghazanfar, Senior Branch Manager

Larkana Branch

1st Floor, Bukhari Shopping Centre,Station Road, Larkana.074-4057435Shahzado Mal, Zonal Manager

Layyah Branch

Opposite Bayco Petrol Pump,Chobara Road, Layyah.0606-411803Shafquat Ali Rao, Group Manager

Lodhran Branch

Al Noor Plaza, Upper Storey,National Bank of Pakistan,Supper Chowk, Lodhran.0346-8873174Mohammad Abbas, Unit Manager

Mandi Bahauddin Branch

2nd Floor, Ayub Plaza,Upper National Bank of Pakistan,Katchary Road, Mandi Bahauddin.0546-520955-6, 0546-520855,0546-520755-6Abid Mehmood, Branch Manager

Mangowal Gharbi Branch

EFU Life, Tulla Plaza, Near Police Chowki,Mangowal Gharbi District, Tehsil Gujrat0345-6938861Shahzada Waqas Ahmed,Senior Unit Manager

Mansehra Branch

Rakaposhi Plaza, Near Khayber Bank,Abbottabad Road, Mansehra.0997-300492Saqib Hussain, Assistant Branch Manager

Mehar City Branch

Shaikh Muhalla,Near Dr.Gulzar Shaikh, Mehar.0254-730445Fahad Hussain, Senior Unit Manager

Mirpur AK Branch

2nd Floor, Nishat Center,Opposite DHQ Hospital, Mirpur AK.058-27446477-88, 058-27442125Tariq Mehmood, Group Manager

Mirpur AK City Branch

2nd Floor, Nishat Center,Opposite DHQ Hospital, Mirpur AK.058-27446477-88, 058-27442125Rawal Javed, Branch Manager

Mirpurkhas City Branch

Opp. Gama Stadium,Main Hyderabad Road, Mirpurkhas-69000.0233-80470Sharwan Kumar, Senior Branch Manager

Mirpurkhas Tharparker Branch

Opp. Gama Stadium,Main Hyderabad Road, Mirpukhas-69000.0233-80470Muhammad Fawad Faisal,Group Manager

Mirpur Mathelo Branch

Sindhu Green Market,Near NBP Bank, Mirpur Mathelo.0723-663275Mahesh, Senior Branch Manager

Mithi Branch

ZTBL Bank Road, Near Water Tank MuslimSiran Colony, Mithi.0331-3846698Hersingh, Senior Unit Manager

Moro Branch

Dadu Road, Moro Distt,Naushero Feroze.0242-422067Ghulam Murtaza, Branch Manager

Multan Cantt Branch

1st Floor, Rajput Commercial Centre,Tareen Road, Multan.061-4500913Mohammad Abid Raza Shah,Senior Branch Manager

Multan City Branch

1st Floor, Rajput Commercial Centre,Tareen Road, Multan.061-4500913Muhammad Kashif Riffat,Group ManagerSyed Wazir Ali Zaidi,Senior Branch Manager

Multan Pioneer Branch

1st Floor, Rajput Commercial Centre,Tareen Road, Multan.061-4500913Kashif Aslam, Assistant Branch Manager

Muridke Branch

Bangla Stop, Near J.S. Bank,Main G.T. Road, Muridke.042-37166065Bilal Iqbal, Unit Manager

Muzaffarabad Branch

1st Floor, Allied Bank,Main Branch, Bank Road, Muzaffarabad.0582-2224080-81Maqbool Ahmed Kiani, Branch Manager

Muzaffargarh Branch

Jandeel Plaza, First Floor,Ghang Road, Muzzafargarh.066-2552268Shahzad Ahmad, Branch Manager

Naushero Feroze Branch

DCO Office, Main Road,Naushero Feroze.0242-448661Sarfraz Ahmed Qureshi,Senior Branch Manager

Nawabshah Branch

Plot C.S No: 223 2nd Floor,Near Edhi Chowk, Masjid Road Ward-A,Nawabshah.024-4372807-08, 024-4365033Abdullah M. Ghumro,Group Manager



182

Okara Branch

1st Floor, RMZ Building,Link M.A. Jinnah Road,Mehar Colony, Okara.0300-6981617Prince Khurram Inayat Ali,Senior Branch Manager

Panjgur Branch

Office No.1, 1st Floor,Haji Nazir Building, Purana Police StationRoad, Opp. Bismillah Hotel,Chickan Bazar, Panjgur.0333-7826399Mumtaz Ahmed,Assistant Unit Manager

Pano Aqil Branch

1st Floor, Khushali Bank, Baiji Road,Pano Aqil, Taluka Pano Aqil, Distt. Sukkar.071-5690291Shafi M. Ghoto, Branch Manager

Peshawar Branch

Plot No. 21-EB, Aman Center,2nd Floor, University Road, Peshawar.091-5852921Syed Jameel Abbas,Assistant Branch Manager

Quetta Branch

1st Floor, Near Bank Al-Falah,M.A. Jinnah Road, Quetta.081-2865112Imran Ahmed, Senior Branch Manager

Quetta Chilton Branch

1st Floor, Shaheen Views,Model Town,Hali Road, Quetta.081-2823685Suneel Kumar Matree,Assistant Branch Manager

Quetta Model Branch

1st Floor, Shaheen Views,Model Town, Hali Road, Quetta.081-2823685Muhammad Javed,Group Manager

Quetta Prime Branch

1st Floor, Shaheen Views,Model Town, Hali Road, Quetta.081-2823685Mohammad Hanif Raza,Branch Manager

Quetta Zarghoon Branch

1st Floor, Near Bank Al-Falah,M.A. Jinnah Road, Quetta.081-2865112Amir Muhammad Jan,Branch Manager

Rahim Yar Khan Branch

Upper Storey, J.S. Bank,Near Cafe Sajawal, City Chowk,Model Town, Rahim Yar Khan.068-5881221Ejaz Ahmed, Assistant Branch Manager

Rajanpur Branch

Ramzan Karim Complex,D.G. Khan Road, Rajanpur.0604-688238-9, 0604-688242-3Wahid Javed, Unit Manager

Ranipur Branch

National Highway, Ranipur,Opp. Masha Allah Petrol Pump,Tehsil Sobhodero, Distt. Khairpur.0243-730146Safdar Hussain Qureshi,Assistant Branch Manager

Rato Dero Branch

Gul Haseeb Showroom,Near TCS Office, Rato Dero0322-3862068Abid Hussain,Senior Unit Manager

Rawalakot Branch

Shalimar Road near new Nadra office,abubakar college Rawalakot,Azad Kashmir.0335-9495141Tasneem Akhter, Unit Manager

Rawalpindi Branch

20-B, 2nd Floor, North Star Plaza,Rehmanabad, Muree Road, Rawalpindi.051-4842002Shahid Mehmood Awan,Senior Branch Manager

Rawalpindi Cantt Branch

Office No. FF-9, 1st Floor,Above Nadra Executive Road,Rehmanabad, Rawalpindi.051-8023001Numan Sabir, Senior Branch Manager

Rawalpindi Chandni Chowk Branch

128-B, 2nd Floor, Din Plaza,Near Chandni Chowk,Main Murree Road, Rawalpindi.051-4571492Saad Aslam Cheema,Branch Manager

Rawalpindi Potohar Branch

128-B, 2nd Floor, Din Plaza,Near Chandni Chowk,Main Murree Road, Rawalpindi051-4571492Javed Iqbal Chaudhry,Senior Branch Manager

Rawalpindi Rawal Branch

128-B, 2nd Floor, Din Plaza,Near Chandni Chowk,Main Murree Road, Rawalpindi.051-4571492Muhammad Afzal, Zonal Manager

Rawalpindi Saddar Branch

128-B, 2nd Floor, Din Plaza,Near Chandni Chowk,Main Murree Road, Rawalpindi.051-4571492M.Ashfaq Khan,Branch Manager

Rawalpindi Westridge Branch

128-B, 2nd Floor, Din Plaza,Near Chandni Chowk,Main Murree Road, Rawalpindi.051-4571492Waqar Ahmed, Senior Unit Manager

Rohri Branch

Opp. Bab-e-Karbala Gate,G.T. Road, Rohri.071-5650664Ghulam Mustafa Mughal,Senior Unit Manager

Sadiqabad Branch

Opposite Govt MC Girls High School,Iqbal Road, Sadiqabad.068-5957986Khalid Maqsood,Senior Branch Manager

Sahiwal City Branch

1st Floor, Central Plaza,High Street, Sahiwal City.040-4223201-5Muhammad Rashid Latif, Zonal Manager

Sahiwal Civic Branch

1st Floor, Central Plaza,High Street, Sahiwal City.040-4223201-5Ghulam Jelani, Senior Branch Manager

Saleh Pat Branch

1st Floor, Honda Agency Showroom,Main Road Saleh Pat, Dist. Sukkur0302-2610173Muhammad Ayoob,Senior Unit Manager

Samaro City Branch

Main Kunri Road, Samaro City,District Umer Kot.0300-0388786 / 0311-1040001Raichand, Senior Unit Manager


183

Sanghar Branch

House No. 962/42, Shah Latif Colony,Hyderabad Road, Sanghar.0333-2915046Imtiaz Muhammad,Assistant Branch Manager

Sargodha Branch

1st Floor, 66-Civil Lines,Court Road, Khan Arcade, Sargodha.048-2005681Akhtar Husnain Akhtar,Senior Branch Manager

Satt Sirra Branch

University Building, Murala Road,Tehsil & District Mandi Bahuddin,Satt Sirra.0321-7749888Habib-ur-Rehman,Senior Unit Manager

Shahdad Kot Branch

Herabad Mohallah Sajawal PhataqShahdad Kot.0333-7500759Gulzar Ali, Unit Manager

Shikarpur Branch

Near Tanveer Mahar Autos,Main Station Road, Shikarpur.0302-5293869Zuhaib Ahmed, Senior Unit Manager

Sialkot Branch

2nd Floor, Shareef Plaza,Near Sialkot Chamber of Commerce Building,Paris Road, Sialkot.052-9269855, 052-4264017Zahid Khan, Assistant Branch Manager

Sukkur Branch

C-433, Ground Floor, Near Qasim Park,Opposite Queen's Road, Sukkur.071-5627068Zaheer Uddin Ghumro, Regional Manager

Sukkur City Branch

C-433, Ground Floor, Near Qasim Park,Opposite Queen's Road, Sukkur.071-5627068Muhammad Arif Junejo, Branch Manager

Sukkur Civic Branch

C-433, Ground Floor, Near Qasim Park,Opposite Queen's Road, Sukkur.071-5627068Tariq H. Khosa, Branch Manager

Tando Ghulam Ali Branch

New Nazamani Market, Near Ice FactoryChambar Naka, Tando Ghulam Ali,Taluka Matli, District Badin.0300-2761250Muhammad Usman, Assistant Unit Manager

Thatta Branch

Office No.1, 1st Floor, Survey No.116Shaheed Abdul Jaili Memon Kanta,Sajawal Road, Main National Highway,Thatta.0298-550131Abid Hussain, Branch Manager

Thull City Branch

Near Riaz Chowk Thull,Tehsil Thull, Dist. Jacobabad.0722-611134, 0722-611089Anees-ur-Rehman, Assistant Branch Manager

Toba Tek Singh Branch

Upper Storey J.S. Bank, Farooq Road,Toba Tek Singh.046-2511017-8,9 and 046-2514615Muhammad Salman Zaheer,Branch Manager

Turbat City Branch

1st Floor, Allah Wala Market,Main Road, Turbat.085-2411718, 085-82411008-9,10Ikhlaq Ahmed, Senior Branch Manager

Ubauro Branch

Near Shah Medical Center,G.T. Road, Ubauro.072-3688764-5,6,Adil Mahmood Samejo, Zonal Manager

Usta Mohammad Branch

Near UBL Bank, Jinnah Road,Usta Mohammad.0302-3096970Ameer Bakhsh, Senior Unit Manager

Uthal Branch

Main RCD Road, Uthal,District Lasbella.0321-9709359Nabi Baksh, Unit Manager

Vehari Branch

Upper National Saving Center,Club Road, Vehari.0300-2869571Imran Mehfooz, Senior Branch Manager

Wah Cantt Branch

Office No. B-8, 2nd Floor,Din Plaza, Main G.T. Road, Taxila.051-4536154Munawar Khan, Senior Unit Manager

Yazman Branch

EFU Life Assurance,Bahawalpur Road, Mandi Yazman.062-2702122-23,24Sharafat Ali, Unit Manager


EFU LifeWindow Takaful - Offices


184

Takaful Bahawalpur Branch

14-C/4, Model Town-A, Shabir ShaheedRoad, Near State Bank, Bahawalpur.062-2886847, 062-2882920,Kashif Azeem, Takaful Zonal Manager

Takaful Bahawal Nagar Branch

Masjid Plaza, Opposite City Girls High School,Jail Road, Bahawal Nagar.063-2272124,27,28,29,30 & 31M. Saghir Tabessom,Takaful Assistant Branch Manager

Takaful Bhagtanwala Branch

G.M. Plaza, Chowki Bhaghat,Near Kothi Stop, Lahore Road, Sargodha.0344-07523321Abid Iqbal,Takaful Senior Branch Manager

Takaful Dera Ismail Khan Branch

Huzaifa Trade Center, 1st Floor,East Circular Road, Near Topan Wala Gate,Dera Ismail Khan.0966-710581-4M. Hayat Khan,Takaful Unit Manager

Takaful Faisalabad Branch

Amir Plaza, 2nd Floor,Kohe Noor City College Road, Faisalabad.041-8718465Ghulam Haider, Takaful Regional Manager

Takaful Faisalabad City Branch

P-13, 3rd Floor,Usmanabad Chenone Road, Faisalabad.041-858543041-4Muhammad Farooq, Takaful Branch Manager

Takaful Gujranawala City Branch

Office No.10, 5th Floor, Bhutta Centre,Main G.T. Road, Gujranwala.0300-6408791Syed Farooq Ali Javed,Takaful Branch Manager

Takaful Gujrat City Branch

Office No.11, 5th Floor, Aleena Center,Bhimber Road, Gujrat.0300-2885471Umer Shaheen Qasmi,Takaful Senior Branch Manager

Takaful Haripur Branch

1st Floor, Al-Hamra Complex,Near Askari Bank, Main G.T. Road, Haripur.0995-627391,94-96M Atique, Takaful Senior Branch Manager

Takaful Hyderabad City Branch

Plot No. B1/54, Mezzanine Floor,Railway Employees CooperativeHousing Society, Latifabad, Hyderabad.022-8334350Abdul Rasheed Shoro,Takaful Regional Manager

Takaful Hyderabad Eagle Branch

Plot No. B3-19/1, Block B-3,Autobhan Road, Latifabad, Hyderabad.022-8334319Imran Shafi, Takaful Branch Manager

Takaful Hyderabad Royal Branch

Plot No. B1/54, Mezzanine Floor,Railway Employees CooperativeHousing Society, Latifabad, Hyderabad.022-8334350Irshad Ali Panhwar,Takaful Senior Branch Manager

Takaful Hyderabad Star Branch

Plot No. B3-19/1, Block B-3,Autobhan Road, Latifabad, Hyderabad.022-8334319Umer Keerio, Takaful Senior Branch Manager

Takaful Islamabad Capital Branch

Dodhy Plaza, 2nd Floor, East Site Office,Jinnah Avenue, Blue Area, Islamabad.051-2604760-64Hyder Gilani, Takaful Senior Branch Manager

Takaful Jhang Branch

Upper Floor, MCB Ghalla Mandi Branch,Toba Road, Saddar, Jhang.0477-651007, 502703Nayyar Azam,Takaful Unit Manager

Takaful Karachi City Branch

Plot No. FL-I, (TH-16), Block-5,Scheme-24, 2nd Floor, Near Bank Al Falah,Gulshan-e-Iqbal, Karachi.021-36102951Adeel Aftab, Takaful Branch Manager

Takaful Karachi Galaxy Branch

EFU Life House, Plot No.112, 8th East Street,Phase-I, DHA, Karachi, Pakistan.021-111-338-111Faraz Jalil Siddiqui, Takaful Zonal Manager

Takaful Karachi Global Branch

EFU Life House, Plot No.112, 8th East Street,Phase-I, DHA, Karachi, Pakistan.021-111-338-111Jamil Ahmed,Takaful Senior Branch Manager

Takaful Karachi Gulshan Branch

Plot No. FL-I, (TH-16), Block-5,Scheme-24, 2nd Floor, Near Bank Al Falah,Gulshan-e-Iqbal, Karachi.021-36102951Muhammad Faizan,Takaful Senior Branch Manager

Takaful Karachi Hatf Branch

A-34, 1st Floor, Hafeez Centre,KCHSU, Shahrah-e-Faisal, Karachi.021-34386340Kinan Amin,Takaful Branch Manager

Takaful Karachi Indus Branch

Plot No. FL-I, (TH-16), Block-5,Scheme-24, 2nd Floor, Near Bank Al Falah,Gulshan-e-Iqbal, Karachi.021-36102951Naushad Ali Kandhro,Takaful Senior Branch Manager

Takaful Karachi Meezan Branch

A-34, 1st Floor, Hafeez Centre,KCHSU, Shahrah-e-Faisal, Karachi.021-34386340Ayoub Khan, Takaful Zonal Manager

Takaful Karachi Mehran Branch

Plot No. FL-I, (TH-16), Block-5,Scheme-24, 2nd Floor, Near Bank Al Falah,Gulshan-e-Iqbal, Karachi.021-36102951Ali Asghar Kandhro,Takaful Zonal Manager

Takaful Karachi North Branch

Office ''B'' 3rd Floor 'J.F' Plaza Plot No D-1,Block -D. Five star Chowrangi NorthNazimabad , Karachi.021-38651650Syed Muhammad Altaf,Takaful Branch Manager

Takaful Karachi Nursery Branch

A-34, 1st Floor, Hafeez Centre,KCHSU, Shahrah-e-Faisal, Karachi.021-34386340Saif Ur Rehman, Takaful Branch Manager

Takaful Karachi Platinum Branch

Office ''B'' 3rd Floor 'J.F' Plaza Plot No D-1,Block -D. Five Star Chowrangi NorthNazimabad , Karachi.021-38651650Danish, Takaful Zonal Manager

Takaful Karachi Progressive Branch

Office No. 307, 3rd Floor, Plot No. 233/1A,Block-2, Amir Trade Centre,Near ARY Jewellar, PECHS, Karachi.0321-9244599Babar Mehmood, Takaful Regional Manager

Takaful Karachi Royal City Branch

Office ''B'' 3rd Floor, 'J.F' Plaza Plot No D-1,Block -D. Five Star Chowrangi NorthNazimabad , Karachi .021-38651650Noor Baz Khan, Takaful Regional Manager

Takaful Lahore Alpha Branch

Office No. U GR-01, Mezzanine Floor,Rehman Business Centre,32-Gulberg-III, Lahore.042-35245722, 042-38003100Abdul Basit Anjum, Takaful Branch Manager


185

Takaful Mian Channu Branch

First Floor, Allied bank,Near T.Chowk, G.T. Road, Mian Channu.065-2660891-5M. Afzal,Takaful Assistant Branch Manager

Takaful Mianwali Branch

Near Shoukat Khanum Lab,Gulberg Chowk, Mianwali.0300-0683314Zia Ullah, Takaful Branch Manager

Takaful Mirpur AK Branch

Plot No.73, KK Plaza, C-3,Near UBL Bank, Fazal Chowk,Mirpur, Azad Kashmir.05827-450116-20Syed Iltija Husain ShahTakaful Branch Manager

Takaful Mirpurkhas City Branch

Hanif Memon Plaza, 1st Floor,Above Bank AL Habib Islami,Station Road, Mirpurkhas.0333-2845855Sumeet Kumar, Takaful Branch Manager

Takaful Multan Branch

2nd Floor, Golden Hieghts,Opp High Court, Multan.061-4587272, 061-4587120,30,40,50Sajjad Qadir, Takaful Branch Manager

Takaful Multan Civic Branch

2nd Floor, Golden Hieghts,Opp. High Court, Multan.061-4587272,061-4587120,30,40,50Qazi Mehboob Rizwan Aslam,Takaful Regional Manager

Takaful Murree Road Branch

Dodhy Plaza, 2nd Floor, East Site Office,Jinnah Avenue, Blue Area, Islamabad.051-2604760-64Waseem Jamal,Takaful Branch Manager

Takaful Nawabshah Star Branch

Plot No.B-599, 1st Floor,Opposite Al Karim Hotel,Katchery Road, Nawabshah.0244-370126M. Waqar,Takaful Assistant Branch Manager

Takaful Peshawar Branch

Jasmin Arcade, 2nd Floor,Saddar, Peshawar.091-5271212-14, 16Zia uddin, Takaful Senior Unit Manager

Takaful Rahim Yar Khan Branch

Al-Hamra House, 1st Floor,20-A, Model Town, Rahim Yar Khan.068-5887124-26, 068-5877126M. Ramzan,Takaful Senior Unit Manager

Takaful Rawalpindi Branch

Office No.32, 3rd Floor, Ferozsons Building,Hospital Road, Rawalpindi.051-2604760Raja Zeeshan Ahmar,Takaful Branch Manager

Takaful Sahiwal Branch

Plot No.15, Block-E, Street No.30,Housing Scheme-ll, District Sahiwal.040-427022-4, 040-4508497Javed Akhtar Chaudhry,Takaful Unit Manager

Takaful Sakrand Royal Branch

Shayan Builders, Flat No.01,Opposite Fahad Clinic,Main Qazi Ahmed Road, Sakrand.0244-322488,85,84,87Zafar Ali, Takaful Branch Manager

Takaful Sargodha Branch

1st Floor, 66-Civil Lines, Court Road,Khan Arcade, Sargodha.048-2001601Bilal Umer,Takaful Zonal Manager

Takaful Sargodha Shaheen

1st Floor, Obaid Plaza, 37-C,Satellite Town Chowk, Sargodha,048-3252684-86Mazhar Iqbal,Takaful Senior Branch Manager

Takaful Thatta Branch

Bukera Building, 1st Floor, Bata Shop,Oppt HBL Bank, Main National High Way,Karachi Road, Thatta.923367711344Abdul Sattar Khushik,Takaful Assistant Branch Manager

Takaful Toba Tek Singh Branch

Upper Floor, U.B.L Bank, Shorkot Road,Toba Tek Singh.0462-514080-85Muhammad Shahid Rafique,Takaful Senior Branch Manager

Takaful Twin City Branch

Dodhy Plaza,2nd Floor, East Site Office,Jinnah Avenue, Blue Area, Islamabad.051-2604760-64Sheikh Waheed Ali,Takaful Branch Manager

Takaful Lahore City Branch

Al-Qadir Heights, 1-Babar Block,Suit No.1,2, Mezzanine Floor,New Garden Town, Lahore.042-35832651-52Muhammad Akbar Munir,Takaful Regional Manage

Takaful Lahore Fort Branch

Al-Qadir Heights, 1-Babar Block,Suit No.1,2, Mezzanine Floor,New Garden Town, Lahore.042-35832653-54Muhammad Imran,Takaful Zonal Manager

Takaful Lahore Galaxy

Office No. U GR-01, Mezzanine Floor,Rehman Business Centre, 32-Gulberg-III042-35245722, 042-38003100Farhan Safeer,Takaful Senior Branch Manager

Takaful Lahore Imperial Branch

Office No. U GR-01, Mezzanine Floor,Rehman Business Centre,32-Gulberg-III, Lahore.042-35245722, 042-38003100Tayyab Afzal, Takaful Branch Manager

Takaful Lahore Prime Branch

Office No. U GR-01, Mezzanine Floor,Rehman Business Centre,32-Gulberg-III, Lahore.042-38003100Paras Raza,Takaful Branch Manager

Takaful Lahore Royal Branch

Office No. U GR-01, Mezzanine Floor,Rehman Business Centre,32-Gulberg-III, Lahore.042-35245722, 042-38003100Saima Akbar, Takaful Branch Manager

Takaful Lahore Unique Branch

Office No. U GR-01, Mezzanine Floor,Rehman Business Centre,32-Gulberg-III, Lahore.042-35245722, 042-38003100Naveed Ali Jaffary,Takaful Senior Branch Manager

Takaful Lahore Warriors Branch

Al-Qadir Heights, 1-Babar Block,Suit No.1,2, Mezzanine Floor,New Garden Town, Lahore.042-35832655Khurram Shahzad,Takaful Senior Branch Manager

Takaful Layyah Branch

1st Floor, Shahjehan Car Showroom,Near District School Boys Wings,Bypass Multan Road, Layyah, Punjab.0606-410185-186Muhammad Yousaf Saleem,Takaful Assistant Branch Manager


Form of E-Voting

E F U LIFE ASSURANCE LTD.

This form of Proxy, duly completed, must be deposited at Al-Malik Centre, 70 W, F-7/G-7, Jinnah Avenue(Blue Area), Islamabad or through email: [email protected].

Signed this day of 2019.

1. Signature:

Name:

Address:

CNIC OrPassport No:

2. Signature:

Name:

Address:

CNIC OrPassport No:

WITNESSES:

Note:

Shareholder's Folio No.

and / or CDC

Participant I.D.No.

and Sub Account No.

RevenueStamp

Signature of Member(s)

I / We ___________________________________________________________________________________

of ______________________________ being a member of EFU LIFE ASSURANCE LTD. hereby opt for

e-voting through intermediary as proxy and will exercise e-voting as per the Companies

(e-voting) Regulations, 2016 and hereby demand for poll for resolutions at the Annual General Meeting

of the Company to be held on Tuesday April 23, 2019 at 11:30 a.m. and at any adjournment thereof.

My secured email address is ________________________________________, please send login details,

password and electronic signature through email.


201623

11:30 2019

2019

[email protected]


Bank Mandate Form

E F U LIFE ASSURANCE LTD.

(i) Shareholder's detail

Signature of the Shareholder

You are requested to kindly send this letter immediately duly filled in and signed by you along with legiblephotocopy of your valid CNIC at our address, Share Registrar Services, Central Depository Company ofPakistan Limited, CDC House, 99-B, Block B, S.M.C.H.S, Main Shahra-e-Faisal, Karachi-74400, Pakistan.

It is stated that the above mentioned information is correct and in case of any change therein, I/wewill immediately intimate Participant / Share Registrar accordingly.

This is to inform you that in accordance with the Section 242 of the Companies Act, 2017, anydividend payable in cash shall only be paid through electronic mode directly into the bank accountdesignated by the entitled shareholder. Please note that giving bank mandate for dividend paymentsis mandatory and in order to comply with this regulatory requirement and to avail the facility ofdirect credit of dividend amount in your bank account, you are requested to please provide thefollowing information:

Name of the Shareholder

Folio No. / CDC Account No.

CNIC No.

Passport No. (in case of foreignshareholder)

Cell Number of Shareholder

Landline Number of Shareholder, if any

E-mail address

(ii) Shareholder's bank detail

Title of the Bank Account

IBAN “24 Digits”

Bank's Name

Branch Name and Code No.

Branch Address

Folio / CDS Account No.

Name of Shareholder

S/o, D/o, W/o

Address

Date

Bank Mandate Form For ElectronicCredit of Cash Dividend

Dear Shareholder,


Life PDF LR Final

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