Economists foresee that after Pakistan’s economy recorded a GDP growth of 5.28 percent during the year 2017 and the insurance sector grew at an average annual rate of around 13 percent on compound basis in the last five years, considering the steady growth and increased insurance penetration in the past five years, it can be inferred that the insurance sector has been performing healthier.
Adamjee Insurance Company Limited (AICL) sees a stable and optimistic regulatory regime going forward to enable the insurance industry to grow faster and increase its penetration across Pakistan. During the first quarter closed on March 31, 2018, the financial experts of the company calculated that the gross premium of the company declined by 21 percent while the net premium rose by 8.3 percent. Overall underwriting results have enhanced by 34 percent over the same period of last year with motor line of business leading the underwriting performance with an underwriting profit of Rs. 272,741 thousands.
The experts mentioned that the profit-before-tax and profit-after-tax have declined by 2.2 percent and 2.6 percent respectively because of decline in investment income in the current period. AICL is one of the largest general insurance companies in Pakistan and has a unique advantage of having regional presence in United Arab Emirates (UAE) and sustains its standing through an unwavering commitment to its corporate philosophy. Furthermore, the written contribution and deficit of Participants’ Takaful Fund amounted to Rs. 262,412 thousands (2017: Rs. 248,055 thousands) and Rs. 5,616 (2017: Rs. 6,439 thousands), respectively. Most of the growth in contribution written came from the Motor and Health line of business which contributed 63 percent and 18 percent, respectively to the total contribution written in this quarter. Furthermore, Window Takaful Operations profit before tax grew by 33 percent amounting to Rs. 19,810 thousands for the period ended 31 March 2018 (2017: Rs. 14,880 thousands).
Adamjee Insurance emerges as one of Pakistan’s leading insurance company. Its competitive advantage is attained through a combination of having the largest paid-up capital and reserves, and a well-diversified business portfolio. The company aims to deliver innovative customer solutions, owing to its wide-ranging line of products. Its employees are dedicated to performing their best for its valued customers, trained with all the skills necessary for a truly outstanding customer service. AICL’s focus on strengthening and enlarging its worldwide presence is reflected in its tapping the growth potential available in the UAE market.
The management in collaboration with Hollard International, a South African company, has life assurance operations under a separate entity namely, Adamjee Life Assurance Company Limited.
As a pioneer in the coverage of Oil & Gas, Wind and Thermal Energy Risks, the management has fruitfully assumed the role of the leading player in Pakistan’s insurance industry.
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Adamjee Insurance Company has also managed to secure business being brought in by international investors entering Pakistan to execute construction or infrastructure development projects. The management’s confidence lies in the large number of banking and financial sector clients that AICL insures. Some of AICL’s high risk-value projects include risk-coverage provision to Petrochemical Factories and Industrial Risk projects. The management also specializes in insuring Engineering and Telecom concerns. Alternatively, AICL serves Pakistan’s primary industry by offering coverage to the Textile and Sugar sectors. No doubt, the management of AICL is proud to be the premier insurer of Kidnap & Ransom, Professional Indemnity, Product Liability and other specialized lines in Pakistan.
| Financial review of AICL (March, 31) (Rs in 000) (Unaudited) | ||
|---|---|---|
| Details | 2018 | 2017 |
| Gross Premium Written | 3,694,166 | 4,678,638 |
| Net Premium Revenue | 3,147,195 | 2,906,192 |
| Underwriting results | 571,013 | 426,027 |
| Investment Income | 532,928 | 675,848 |
| Profit before tax | 950,914 | 973,086 |
| Profit after tax | 663,399 | 681,160 |
| Source: AICL | ||