EFU General Insurace full year profit exceeds Rs4 billion

The Board of Directors of EFU General Insurance approved financial accounts, payment of 45 percent final dividend and issue 25 percent bonus shares for the year 2015. The company had already paid 30 percent interim dividend, which will take full year payout to 75 percent.
For the year ended 31^st December 2015 the company has posted profit after tax of Rs4,033 million (EPS: Rs25.21) as compared to profit of Rs1,829 million (EPS: Rs11.43), an increase of 120 percent.
This excellent performance can be attributed to a number of factors that include: 1) underwriting income rising to Rs1,533 million from Rs1,316 million, 2) investment income increasing to Rs1,202 million from Rs914 million and 3) reversal of provision for impairment of an associate company amounting to Rs1,987 million.

Pakistan: Opportunities for Global Insurers

The incumbent government in Pakistan wishes to put the economy on track as well as accelerate pace of productive activities, construct mega size infrastructure projects and improve the quality of life of people, insurance companies will have to shoulder greater responsibilities. They have to come up with new products to cater to emerging needs. Over the last two decades new threats have emerged and hedging the risk has become the collective responsibility of all the stakeholders. The government being the largest stakeholder is responsible for paying compensation to the victims of various types of eventualities, i.e. act of terrorism, political violence and natural calamities. Three deluges, carnage and destruction on the eve of assignation of Benazir Bhutto and 2005 earthquake have shown that while economic losses ran into billions of rupees insurance claims were minuscule, simply because immovable and movable properties, government assets and even the lives of people were not adequately insured. In the prevailing scenario insurance will have to come up with new products to cater to emerging needs. This also offers opportunities to the global insurers to form joint ventures with Pakistani insurance companies to exploit a market that still suffers from very low insurance penetration. To read the details visit shkazmipk.com