Corporate Briefing Session 2022
31 March 2023
AGENDA
COMPANY PROFILE
CREDIT RATING
EFU Life Assurance Limited
has been assigned Insurer Financial Strength rating
of “
AA
++
” (Double A Plus Plus) by VIS Credit Rating Company Limited and outlook on
the assigned rating is ‘Stable’.
The rating signifies company’s exceptionally strong capacity to meet policyholders’
and contractual obligations.
KEY FINANCIAL INDICATORS - 2022
Return On
Equity
Earning per
Share
Dividend
AWARDS & ACHIEVEMENTS
Awarded
‘Best
Domestic Life
Insurer’
of Pakistan
at the Insurance
Asia Awards 2022
for the second
consecutive year.
Conferred with
‘Best
Domestic Life
Insurer’
award at
Global Business
Outlook (GBO)
Awards 2022 for the
second consecutive
year.
Recognized in
‘Top 25
Companies for the Year
2021’
by Pakistan Stock
Exchange for the third
time for its services in the
sphere of corporate
governance, financial
performance, and
shareholder value.
‘International
Environment, Health &
Safety Award
’ in the
category of ‘Best
Environmental Practices’
by The Professionals
Network and Ethical
Business Update (EBU).
AWARDS & ACHIEVEMENTS
Honored with the
prestigious
‘Corporate
Excellence Award’
for the 13th time by
Management
Association of
Pakistan (MAP) as the
best Life Insurance
Company at the 37th
Corporate Excellence
Awards 2022.
Awarded
‘Brand of the
Year Award 2021
’ for
Best Life Insurance
Company based on
market standing and
consumer preference
by The Brands
Foundation. The
Company has been
awarded this title 10
times.
Honored with the
‘Consumers Demand
Award’ 2022
for Best
Life Insurance
Company at the 16th
Consumers Choice
Award 2021-22 for
excellence in
management practice
and services quality.
Conferred with
‘CSR
Award 2022’
in the
category of ‘Social
Impact’ at the 11th
Corporate Social
Responsibility Summit &
Awards in recognition
of the Company’s
efforts in areas of
health, education and
environment.
PRODUCTS
OUR BANK PARTNERS
PROFIT AND LOSS ACCOUNT
PKR Million
GROSS PREMIUM
In 2022, the gross premium of the Company was
Rs. 39.6 billion
CLAIM PAYMENTS
In 2022, the Company
settled total death and
disability claims of
Rs. 3.85
billion
(2021: 4.09 billion),
a decrease of 6%, mainly
due to reduction in COVID
claims.
ASSETS AND FUNDS
The Company has a strong
balance sheet size with total assets
of
Rs. 178 billion
for 2022
(2021: Rs. 163 billion)
The net asset value of all Unit-
Linked funds under management
increased from Rs. 145 billion in
2021 to
Rs. 159 billion
in 2022.
CHALLENGES
TAXES
AWARENESS
•
Slowing down of
economic activity
•
Purchasing power of
customers has reduced
•
Cost of doing business
increasing
•
Low consumer awareness
•
Untapped low-income and
unbanked segment
•
Imposition of Super Tax
•
Withdrawal of tax credit on
life insurance premium
•
Petition pending for Sales Tax
on services
REGULATIONS
•
Amendments to Unit Linked
Product and Fund Rules 2015
•
AML, CFT
•
IFRS 17
STRATEGY
•
Focus on strengthening
distribution channels
•
Investing in new
channels such as
Digital & telesales
THANK YOU!
EFU Life Assurance, the first private sector life insurance company in Pakistan. Discover our company profile, business performance, awards and achievements, and future plans. Join our corporate briefing session to have your questions answered.
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Presentation Transcript
Corporate Briefing Session 2022 31 March 2023
AGENDA Company Profile Business Performance Awards and Achievements Future Plans Q & A
COMPANY PROFILE First private sector Life Insurance Company of Pakistan. Company is part of the EFU Group which also includes EFU General and Allianz- EFU Health Largest insurance group in Pakistan Launched Window Takaful Operations in 2015 Product range covers Conventional and Takaful products; savings and protection Distribution channels: Sales Force, Bancassurance, Group Benefits, Mass market & Inclusive covering ~4 million lives First life insurance company in Pakistan to be ISO certified; currently is ISO 9001:2015 certified EFU Life is reinsured by leading Reinsurers in the market (Munich Re, Hannover Re)
CREDIT RATING EFU Life Assurance Limited has been assigned Insurer Financial Strength rating of AA++ (Double A Plus Plus) by VIS Credit Rating Company Limited and outlook on the assigned rating is Stable . The rating signifies company s exceptionally strong capacity to meet policyholders and contractual obligations.
KEY FINANCIAL INDICATORS - 2022 Return On Equity Earning per Share Shareholders Equity Dividend 150% Rs. 16.92 26.7% Rs. 6.3 Bn
AWARDS & ACHIEVEMENTS Conferred with Best Domestic Insurer award at Global Outlook Awards 2022 for the second consecutive year. Recognized in Top 25 Companies for the Year 2021 by Pakistan Stock Exchange for the third time for its services in the sphere of governance, performance, shareholder value. International Environment, Health & Safety Award in the category Environmental by The Network and Business Update (EBU). Awarded Domestic Insurer of Pakistan at the Asia Awards 2022 for the consecutive year. Best Life Life Business (GBO) of Best Insurance Practices Professionals Ethical corporate financial second and
AWARDS & ACHIEVEMENTS Awarded Brand of the Year Award 2021 for Best Life Company based on market standing and consumer by The Foundation. Company has been awarded this title 10 times. Conferred with CSR Award 2022 in the category of Impact at the 11th Corporate Responsibility Summit & Awards in recognition of the efforts in areas of health, education and environment. Honored prestigious Corporate Excellence for the 13th time by Management Association Pakistan (MAP) as the best Life Insurance Company at the 37th Corporate Excellence Awards 2022. with the Honored Consumers Demand Award 2022 for Best Life Company at the 16th Consumers Award 2021-22 for excellence management practice and services quality. with the Insurance Social Award Insurance Social preference Brands of Choice The Company s in
PRODUCTS EFU Life s product range is designed around needs of defined segments with a focus on financial inclusion. During 2022, several innovative financial solutions were launched via branchless banks, telcos, micro finance institutions, and technology platforms covering an additional 3 million lives Products were launched for various bank partners focusing on needs of child financial planning, wealth accumulation and insurance protection.
PROFIT AND LOSS ACCOUNT PKR Million 2022 2021 Change Gross Premium/ Contribution Revenue 39,565 37,407 6% Net Premium/ Contribution Revenue 38,471 36,350 6% Investment Income, Net realized gain(loss) 14,535 7,479 94% Total Net Income 53,006 43,829 21% Net Insurance Benefits 25,517 23,020 11% Net Change in Insurance Liabilities 14,167 8,431 68% Acquisition Expenses 7,896 7,906 -0.13% Marketing and Administration Expenses, others 2,585 2,331 11% Total Expenses 24,647 18,668 32% Profit before Tax 2,842 2,142 33% Profit after Tax 1,692 1,508 12% Earnings per share - Rupees 16.92 15.08
GROSS PREMIUM Gross Premium Composition Gross Premium Growth 5 Year Summary PKR Billion 13% 18% 2% 33.59 32.76 28.72 27.45 25.18 First Year Premium Renewal Premium Single Premium Group Benefits 5.57 3.58 3.67 3.23 3.19 67% 2018 2019 2020 2021 2022 Individual Life Regular Premium Group Benefits In 2022, the gross premium of the Company was Rs. 39.6 billion
CLAIM PAYMENTS Gross Death & Disability Claims 5 Year Summary PKR Million Individual Life Group Benefits 2,727 2,554 2,544 In 2022, the Company settled total death and disability claims of Rs. 3.85 billion (2021: 4.09 billion), a decrease of 6%, mainly due to reduction in COVID claims. 2,189 2,101 1,360 1,316 1,297 951 607 2018 2019 2020 2021 2022
ASSETS AND FUNDS Assets Composition The Company has a strong balance sheet size with total assets of Rs. 178 billion for 2022 (2021: Rs. 163 billion) 2% Government Securities 5% 11% Cash and Bank Deposits 4% Current Assets The net asset value of all Unit- Linked funds under management increased from Rs. 145 billion in 2021 to Rs. 159 billion in 2022. Shares and Mutual Funds 10% 68% Other Fixed Income Securities Fixed Assets
CHALLENGES TAXES ECONOMY Slowing down of economic activity Purchasing power of customers has reduced Cost of doing business increasing Imposition of Super Tax Withdrawal of tax credit on life insurance premium Petition pending for Sales Tax on services . AWARENESS Low consumer awareness Untapped low-income and unbanked segment REGULATIONS Amendments to Unit Linked Product and Fund Rules 2015 AML, CFT IFRS 17
STRATEGY PRODCUTS DISTRIBUTION Enhance product portfolio to reach new customer segments Focus on strengthening distribution channels Investing in new channels such as Digital & telesales . CUSTOMER SERVICE TECHNOLOGY Optimize all aspects of customer journey Technology as an enabler
