Eful Annual 2016

Table of Contents
Introduction Key Financial Data for the Last Six Years 65

Vision & Mission 4 Key Operating and Financial Data 66
Strategic Objectives 6 Graphical Analysis 67
Core Values 8 Vertical Analysis 70
Key Financial Highlights 10 Horizontal Analysis 70
Technology 12 Revenue Application 72
Distribution Footprint 14 Shariah Advisory Report to the Board of Directors / Profile of Shariah Advisor 73
CSR Initiatives 16 Statement of Compliance with the Shariah Principles 75
Products & Solutions 18 Independent Reasonable Assurance Report to the Board of Directors
on the Statement of Management's Assessment of Compliance
Our Team 20
with the Shariah Principles 76
Corporate Information Statement of Compliance with the Code of Corporate Governance 78
Directors Profile 22 Review Report to the Members on Corporate Governance 82
Leadership Team 24 Auditors' Report to the Members 83
Organogram 26 Balance Sheet 84
Management 27 Profit & Loss Account 86
Committees 28 Statement of Changes in Equity 87
Company Information 29 Statement of Cash Flows 88
Access to Reports & Enquiries 30 Revenue Account 89
Journey through the year 31 Statement of Premiums 90
Code of Conduct 35 Statement of Claims 91
Stakeholder Engagement / Quality Assurance 36 Statement of Expenses 92
Investor Grievance Policy 37 Statement of Investment Income 93
Company Profile / Evaluation of Board’s Performance 38 Disclosures
Decisions Taken at the 24th AGM 39
Notes to the Financial Statements 94
Role of the Chairman and the CEO 40
Statement under Section 52(2) 135
Financial Calendar 41
Notice of Meeting 42 Other Information
Pattern of Shareholding 136
Management Review and Representations
Glossary 138
Sustainability Report 47
Group Benefit - Offices 140
Audit Committee- Terms of Reference 48
Bancassurance - Offices 140
Report of the Audit Commitee 49
Individual Life - Offices 141
Report of the Directors to the Members 50
Window Takaful Offices 148
Risk and Opportunity Report 59
Urdu Translation of Report of the Directors to the Members 158
Stakeholder's Information Form of Proxy
DuPont Analysis For the year 2016 60 Bank Mandate Form
Summary of Cash Flow 61
Performance at a Glance 62
Share Price Sensitivity Analysis 64
Variation in Quarterly Reports 64
2 EFU LIFE ASSURANCE LTD

3
Organogram Management
Managing Director & Chief Executive Managers

Taher G. Sachak Adnan Ali Gul
Akbar Husain Qazilbash
Executive Directors Ameer Abbas Mir Muhammadi
Mohammed Ali Ahmed Asif Akhtar
S. Shahid Abbas Dr. Ammara Moazzum
Zain Ibrahim Faisal Zahir
Farah Mushtaq
Deputy General Managers Furqan Ahmed
Arshad Iqbal Irfan Abbas Hameer
Ashfaque Ahmed Irfan Junejo
Mohammad Asim Khan Irfan Qadir Malik
Javed Ameen
Assistant General Managers Jibran Masood Khan
Adeel Ishaque M. Jawaid Mughal
Ali Qureshi M. Rafi Malik
Aman Hussain Majid Aziz
Jalal Habib Curmally Mohammad Faisal
Raza Hasan Mushtaq Ali
S. Mohammad Owais Nasir Feroze Khan
Ramesh Kumar
Medical Director S. Abdul Mujeeb
Dr. Tajuddin A. Manji, F.R.C.P., M.R.C.P. Sajid Mahmood Butt
Sheikh Irfan Zafar
Chief Managers
Evelyn D. Abrogena Distribution Channels
M. Fawad Habib
M. Hasan Shaikh Sales Force
M. Rehan Siddiqui Mustafa Hussain Ali
Mohammad Abbas National Sales Director
Naseeruddin Ahmed
Nilofer Sohail Group Benefits
S. Muhammad Athar S. Ali Raza Zaidi
Sajjad Hussain Khan Executive Director
Senior Managers Bancassurance

Abida Hasanali Husein Sachak
Ammar Qamar Head of Bancassurance
Asim Maqbool
Burhan Zahid Chughtai Takaful Operations
Dr. Asad ul Hadi Siddiqui Rehman Fayyaz Khan
Fahd Saifuddin Syed Head of Window Takaful Operations
Farrukh Hasan
Mohammad Zubair Shariah Advisor
S. Mohammad Amer Mufti Muhammad Ibrahim Essa
S. Rizwan Ali Bukhari
Zia ur Rehman Khan Shariah Compliance Officer
Adeel Ishaque

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Committees Company Information
Audit Committee Claim Settlement Committee Chairman Rating

Hasanali Abdullah Taher G. Sachak Rafique R. Bhimjee Rating Agency: JCR-VIS
Saifuddin N. Zoomkawala Arshad Iqbal Insurer Financial Strength Rating: AA+
Managing Director Outlook: Stable
Muneer R. Bhimjee Dr. Ammara Moazzam
& Chief Executive
Kamal Afsar Sajjad Hussain
Taher G. Sachak Registrar
Ethics, HR & Remuneration Reinsurance Committee Technology Trade (Pvt.) Ltd.
Directors Dagia House 241-C
Committee Taher G. Sachak
Saifuddin N. Zoomkawala Block-2, P.E.C.H.S.
Rafique R. Bhimjee Mohammad Ali Ahmed
Muneer R. Bhimjee Off Shahrah-e-Quaideen
Saifuddin N. Zoomkawala Zain Ibrahim Hasanali Abdullah Karachi.
Taher G. Sachak Raza Hasan Heinz Walter Dollberg Ph: (92-21) 34391316-17 & 19, 34387960-61
Ali Qureshi Kamal Afsar Fax: (92-21) 34391318
Investment Committee
Syed Salman Rashid
Rafique R. Bhimjee Risk Management & Compliance Mahmood Lotia Website:
Saifuddin N. Zoomkawala Committee www.efulife.com
Taher G. Sachak Taher G. Sachak Corporate Secretary
Hasanali Abdullah Mohammed Ali Ahmed S. Shahid Abbas Registered Office
Omer Morshed S. Shahid Abbas Al-Malik Centre
Appointed Actuary 70 W, F-7/G-7
S. Shahid Abbas Zain Ibrahim
Mohammed Ali Ahmed Ali Qureshi Omer Morshed Jinnah Avenue, (Blue Area)
S. Muhammad Owais Abbas Hussain F.C.A., F.P.S.A., F.I.A. Islamabad.
Legal Advisor Main Office

Underwriting Committee IT Steering Committee
Mohammad Ali Sayeed, M.A.B.L. EFU Life House,
Taher G. Sachak Zain Ibrahim
Plot No.112, 8th East Street
Dr. Tajuddin Manji S. Shahid Abbas Auditors Phase 1, DHA, Karachi.
Zain Ibrahim Ashfaque Ahmed KPMG Taseer Hadi & Co.
Hasan Sheikh Chartered Accountants, Karachi
Dr. Asad-ul-Hadi
Shariah Advisor
Mufti Muhammad Ibrahim Essa

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Access to Reports and Enquiries
Annual Report
Annual report can be downloaded from
the Company's website: www.efulife.com;
or printed copies obtained by writing to:
The Company Secretary

EFU Life Assurance Ltd.
EFU Life House,
Plot No.112, 8th East Street
Phase 1, DHA, Karachi
Pakistan
Quarterly Reports
The Company publishes interim reports
at the end of first, second and third
quarters of the financial year. The
interim reports can be accessed at
website: www.efulife.com; or printed
copies can be obtained from the
Company Secretary.
Shareholders' Enquiries
Shareholders' enquiries about their
holding, dividends or share certificates
can be directed to Share Registrar at
the following address:
Technology Trade (Pvt.) Ltd.

Dagia House 241-C
Block-2, P.E.C.H.S.
Off Shahrah-e-Quaideen
Karachi.
Tel: (92-21) 34391316-17
Fax: (92-21) 34391318
Stock Exchange Listing

The shares of the Company are listed
on Pakistan Stock Exchange. The symbol
code is EFUL.

Code of Conduct
Statement of Ethics
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 to
disclose it.
l Protect the confidentiality of information relating to the Company both during the course of Directorship
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 Officer in the
event that the Compliance Officer is unavailable) to hold any position (paid or unpaid) with any outside
party, firm or organization. For clarity, positions covered include but are not limited to consultant, employee,
Director, representative and agent. Furthermore, all staff must disclose in writing to the Company, any
such positions they currently hold at the time of signing this statement. Directors 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 conflict with
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 violation of this
statement.
l Disclose their shareholding in the Company's Securities upon signing this agreement and any changes in
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 and fairly.
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 and
encourage 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 on
achieving superior results.
l A culture of excellence. We measure our performance on every task we undertake not just by the results
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 providing
excellent service to our clients.
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 in the management of its
business. All the employees are expected to carry out their duties in a manner that is consistent with the Code.
If employees become aware of the circumstances which are not in compliance with the Code, they communicate
their concerns to the Managing Director.
Internal Audit Framework and Role of the Internal Auditor
Internal Audit is an independent appraisal function, which operates as a service to the company through the
Audit Committee and senior management. Its role, as part of the overall governance and control environment,
is to provide an independent and objective assurance and consulting service; to evaluate the adequacy and
effectiveness of the risk management, internal controls, operations and governance processes throughout the
company. It also provides an opinion on the company's operation for economy, efficiency and 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 consult with appropriate management to set mutually convenient
dates for audit work to take place, but the timing of the audit is at the ultimate discretion of the audit department.
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Stakeholder Engagement / Investor Grievance Policy
Quality Assurance
Policy and Procedures for Stakeholder Engagement EFU Life Assurance Ltd. believes that relations with investors are vital for the financial life line and substantial
growth of the organization. Relations with investors also reflect on the goodwill of the organization. It is
Institutional Investors
therefore, imperative to place an efficient and effective mechanism in the organization for providing
The Company convenes Annual General Meeting in accordance with the Companies Ordinance, 1984. The services to the investors and to re-dress their grievances in accordance with law.
Company’s financial reports are published every quarter and are also placed on Company's website for the
share holders and potential investors. 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 years
In compliance with the Code of Corporate Governance under the listing regulations of the stock exchange. and daily stock update showing daily rates of the Company's shares quoted at the Karachi Stock Exchange.
The Company notifies information to the stock exchange from time to time. This helps the shareholders remain
connected with the Company. The dates of the Board of Directors Meetings and financial results are notified The Chief Financial Officer and Corporate Secretary of the Company is the primary contact on behalf of
to the stock exchange. the Company to whom the investors can contact to re-dress their grievances and resolve their issues.
Customers The management endeavors to investigate and resolve all the complaints and queries of the investors to
We believe in customer trust and satisfaction being our strength over the years. To help improve customer their utmost satisfaction. An investor who is not satisfied can also approach the Securities & Exchange
service and meet their needs and expectations, feedback from customers are sought. Commission of Pakistan (SECP) complaint cell through interactive link provided on our website. Our investor
grievance policy is broadly based on the following principles:
Banks
We understand the importance of these stakeholders and ensure continuous interactions with them and manage • Investors calling us in person, telephone, fax or email are received and their complaints are dealt in
our relationships. timely manner.
• Each and every investor is treated fairly at all the times.
Media
• Prompt, efficient and fair treatment is given to all the complaints and queries of the investors.
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 are
filed 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 and
delivering 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 / she is to make certain those standards
are met. Measuring the quality that is delivered is critical for consistent results. Department / Branch Heads
monitor work processes and maintain quality standards.
As per ISO 9001:2008 standards, EFU Life has established procedures for quality assurance of services by
continually 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? By
tweaking the process where required or by raising standards each year, we will see our overall business
quality improve to levels higher than ever before.

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Decisions Taken at the 24th AGM
Company Profile No significant issues were raised by the shareholders during the meeting. The following matters taken up
in the meeting as per Agenda were approved unanimously and the decisions taken were implemented
The EFU Brand has a rich history of over 84 years, starting in 1932 in Calcutta. By 1961, EFU had become
the flag bearer of Pakistan's insurance industry on the world stage, and the largest life company in Afro- in due course:
Asian countries (excluding Japan). It remained so until 1972 when Life insurance business in Pakistan was
1. approval of the minutes of the 23rd Annual General Meeting held on April 10, 2015.
nationalized. 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 Assurance 2. Approval of Audited Financial Statements for the year ended December 31, 2015 together with the
Ltd was incorporated as the first private sector life insurance company. Over a span of 24 years EFU Life Directors and Auditors' reports thereon.
has established itself as a trusted brand name in providing all types of financial planning solutions. The
Company markets its business through three main distribution channels - Sales Force, Bancassurance and 3. Approval of Final Cash Dividend at the rate of Rs.7/- per share i.e. 70% for the year ended December
Group Benefits. A comprehensive range of retail products are available targeting low income persons up 31, 2015 as recommended by the Board of Directors and also approve the interim dividend of Rs 3
to high net worth individuals. In addition, tailor made solutions are offered to the corporate sector through i.e. 30% already paid to shareholders, thus making a total of Rs 10 per share i.e. 100% for the year
group life schemes. ended December 31, 2015
The Company also has the distinction of being the first Window Family Takaful Operator to be licensed
4. Approval of special resolution to amend the Article of Association of the company by inserting a new
by the SECP and to start window takaful operations. A complete Shariah compliant suite of financial
clause numbering 82 to introduce E-Voting as prescribed by securities & Exchange Commission of
planning products is available through all distribution channels.
Pakistan
Annual Evaluation of Board's Performance
5. Appointment of KPMG as Auditors for the year 2016.
The Board has placed a mechanism to evaluate its performance annually as required by the Code of
Corporate Governance. The mechanism devised is based on the emerging and leading trends on the 6. Approval to invest in shares of Associated Company, EFU General Insurance Ltd. of Rs. 100,000,000/-
functioning of the Board and improving its effectiveness. The placement and functioning of evaluation with in period of next three years.
mechanism is out sourced.
MD's Performance Review

Managing Director's performance is monitored and evaluated by the Board against the objectives and
performance targets set by the Board.

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Role of the Chairman Financial Calendar
and the CEO
The roles of the Chairman and the Chief Executive are separate and complementary, with responsibilities clearly set out. Results
Chairman
First Quarter ended 31 March Announced on 23-Apr-16
The Chairman is responsible for leadership of the Board. In particular, he will: Half year ended 30 June Announced on 20-Aug-16
• Ensure effective operation of the Board and its committees in conformity with the highest standards of corporate Third quarter ended 30 September Announced on 22-Oct-16
governance. Year ended 31 December Announced on 14-Feb-17
• Ensure effective communication with shareholders, and other relevant stakeholders and that the views of these
groups are understood by the Board. Dividend
• Set an agenda which is primarily focused on strategy, performance, value creation and accountability, and
ensure that issues relevant to those areas are considered by the Board. 1st Interim 2016 Announced On 23-Apr-16
• Ensure that the Board determines the nature and extent of the significant risks the Company is willing to embrace Amount 10%
in the implementation of its strategy, and that the Board reviews on an ongoing basis the effectiveness of risk Entitlement date 9-May-16
management and internal control systems. Paid On 20-May-16
• Set the agenda, style and tone of Board discussions to promote constructive debate and effective decision
2nd Interim 2016 Announced On 20-Aug-16
making.
Amount 10%
• Manage the Board to ensure that adequate time is allowed for discussion of all agenda items (in particular Entitlement date 5-Sep-16
strategic issues) and to ensure that complex or contentious issues are dealt with effectively, making sure in Paid On 22-Sep-16
particular 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's 3rd Interim 2016 Announced On 22-Oct-16
performance. Amount 10%
Entitlement date 7-Nov-16
Chief Executive Paid On 18-Nov-16
The Chief Executive is responsible for leadership of the life insurance business, managing it within the authorities delegated
Final Cash 2016 Announced On 14-Feb-17
by the Board and the development and implementation of strategy. In particular, he will:
Amount 120%
• Develop strategy proposals for recommendation to the Board and ensure that agreed corporate strategy actions Entitlement date 7-Apr-17
are reflected in the business. Statutory limit up to payable 15-May-17
• Be responsible to the Board for the performance of the business consistent with agreed business plans, corporate
strategies and policies and keep the Board as a whole updated on progress made against such agreed plans, Interim (2015) Announced on 23-Apr-15
corporate strategies and policies. Amount 10%
Entitlement date 7-May-15
• Facilitate the operating businesses of the Company in developing their own strategic plans for the future ensuring
Paid on 18-May-15
that 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 its Interim (2015) Announced on 31-Aug-15
business plans Amount 10%
• Develop an organizational structure and establish processes and systems to ensure the efficient organization Entitlement date 14-Sep-15
of resources. Paid on 21-Sep-15
• Lead the Committees, including the development of performance targets and appraisals for the Executive Interim (2015) Announced on 31-Oct-15
Committees and senior management. Ensure that business is conducted in accordance with the Business Amount 10%
Principles. Entitlement date 16-Nov-15
• Ensure that the flow of information to the Board is accurate, timely and clear. Ensure that reporting lines within Paid on 26-Nov-15
the Company are clearly established and are effective.
Final cash (2015) Announced on 15-Feb-16
• Ensure that management puts procedures in place to ensure compliance with all relevant legislation and
Amount 70%
regulation.
Entitlement date 25-Mar-16
• Develop and maintain an effective framework of internal controls including risk management in relation to all Paid on 8-Apr-16
business activities.
• Ensure that the Company has a suitable system and policy for the timely and accurate disclosure of information Issuance of Annual Report 18-Mar-17
in accordance with regulatory requirements.
• Keep the Chairman promptly informed on all matters that may be of importance to the Board or of which the 25th Annual General Meeting 15-Apr-17
Board should be aware.
The Chairman and Chief Executive will meet regularly to review issues, opportunities and problems.

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Notice of Meeting
Notice is hereby given that the 25th Annual General Meeting of the Shareholders of EFU Life Assurance Ltd. NOTES:
will be held at Kamran Centre, 1st Floor, 85 East, Blue Area, Jinnah Avenue, Islamabad on April 15, 2017
1. A member entitled to attend and vote at the General Meeting is entitled to appoint another member
at 12.00 Noon to:
as a proxy to attend and vote on his/her behalf. Form of proxy must be deposited at the Company's
A . ORDINARY BUSINESS: Registered Office not later than 48 hours before the time appointed for the meeting.
1. confirm the minutes of the 24th Annual General Meeting held on April 2, 2016. 2. CDC Account holders are advised to follow the following guidelines of the Securities and Exchange
Commission of Pakistan:
2. receive, consider and approve the Audited Financial Statements for the year ended December 31, 2016
together with the Directors' and Auditors' reports thereon. a. For attending the meeting:
3. consider and if thought fit to approve the payment of Final Cash Dividend at the rate of Rs.12/- per share (i) In case of individuals, the account holder and or sub-account holder and their registration details
i.e. 120% as recommended by the Board of Directors and also approve the Interim cash dividend of are uploaded as per the Regulations, shall authenticate his identity by showing his original
Rs.3/- per share i.e. 30% already paid to shareholders for the year ended December 31, 2016. Computerized National Identity Card (CNIC) or original passport at the time of attending the meeting.
4. appoint Auditors for the year 2017 and fix their remuneration. (ii) In case of corporate entity, the Board of Directors' resolution / power of attorney with specimen
signature of the nominee shall be produced (unless it has been provided earlier) at the time of the
B. SPECIAL BUSINESS: meeting.
5. Consider, and if thought fit, to pass the following Resolution with or without modification(s) b. For appointing proxies:
RESOLVED that transmission of annual audited financial statements, auditors' report and directors' report (i) In case of individuals, the account holder and or sub-account holder and their registration details
etc to the members of the Company at their registered addresses in soft form i.e. through CD/ DVD/ USB are uploaded as per the Regulations, shall submit the proxy form as per the above requirement.
instead of transmitting the same in hard copies from the year ending December 31, 2017 in terms of (ii) The proxy form shall be witnessed by two persons whose names, addresses and CNIC numbers shall
SRO No.470(1)/2016 dated May 31, 2016 be and is hereby approved. be mentioned on the form.
FURTHER RESOLVED that the Chief Executive Officer and the Company Secretary of the Company be (iii) Attested copies of CNIC or the passport of the beneficial owners and the proxy shall be furnished
and are hereby severally authorized to give effect to this resolution and to do or cause to do all acts, with the proxy form.
deeds and things that may be necessary or required and to sign such documents and take such steps
from time to time, as and when necessary for the purposes of implementing this resolution.” (iv) The proxy shall produce his original CNIC or original passport at the time of the meeting.
6. transact any other matter with the permission of the Chair. (v) In case of corporate entity, the Board of Directors' resolution / power of attorney with specimen
signature shall be submitted (unless it has been provided earlier) along-with proxy form to the
Attached to this notice of meeting being sent to the members is a statement under Section 160(1) (b) Company.
of the Companies Ordinance 1984 setting forth:
3. The Share Transfer Books of the Company will be closed from April 08, 2017 to April 15, 2017 (both
- all material facts concerning the resolutions contained in items 5 of the notice days inclusive). Transfers received at the office of our Share Registrar, Technology Trade (Pvt) Ltd., situated
- status of previous approval of investment in associated Company. at Dagia House, 241- C Block 2, PECHS. Shahrah-e-Quaideen, Karachi, before the close of business on
April 7, 2017 will be considered in time to attend and vote at the meeting and for the entitlement of
By Order of the Board Dividend.
4. Members are requested to notify / submit the following, in case of book entry securities in CDC to
respective CDC participants and in case of physical shares, to the Company's Share Registrar, if not earlier
Syed Shahid Abbas provided/ notified:-
Karachi February 14, 2017 Chief Financial Officer &
a. Change in their addresses;
Corporate Secretary
b. Valid and legible photocopies of Computerized National Identity card (CNIC) for Individuals and
National Tax Number (NTN) both for individual & corporate entities; and

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5. Electronic Transmission of Annual Financial Statement and Notices To enable the Company to make tax deduction on the amount of cash dividend @ 12.5% instead
of 20%, all the shareholders whose names are not entered into the Active Tax Payers List (ATL)
Securities and Exchange Commission of Pakistan (SECP) vide SRO.787 (1)/2014 of September 08, 2014,
provided on the website of FBR, despite the fact that they are filers, are advised to make sure that
has directed to facilitate the members of the Company receiving Annual Financial Statements and Notices
their names are entered into ATL before the date for payment of the cash dividend otherwise tax
through electronic mail system (e-mail). We are pleased to offer this facility to our members who desire
on their cash dividend will be deducted @20% instead @12.5%.
to receive Annual Financial Statements and Notices of the Company through email in future. In this
respect members are hereby requested to convey their consent via email on a standard request form (ii) In the case of shares registered in the name of two or more shareholders, each joint-holder is to be
which is available at the Company website i.e. www.efulife.com. Please ensure that your email has treated individually as either a filer or non-filer and tax be deducted by the Company on the basis
sufficient rights and space available to receive such email which may be larger than 1 MB file in size. of shareholding of each joint-holder as may be notified to the Company in writing. The joint-holders
Further, it is the responsibility of the member to timely update the Share Registrar of any change in the are, therefore, requested to submit their shareholdings otherwise each joint-holder shall be presumed
registered email address. to have an equal number of shares.
6. Mandate for Dividend (Optional)/ E-Dividend (iii) For any query / problem / information, the investors may contact the Company and / or the Share
Registrar at the following phone numbers & email address. The contact number of Company
Under section 250 of the Companies Ordinance, 1984 shareholders, if they so desire, may elect to have
Secretary is 021-111-338-111 & email: [email protected] and the contact numbers of Share
their cash dividend warrants deposited directly in their bank accounts by giving bank mandate. The
Registrar, Technology Trade (Pvt.) Limited is 021-34391316-7 & 19 & email: [email protected].
shareholders holding physical shares can request to the Company for direct deposit of their dividend
warrants into their bank accounts by submitting their requests to the Company's Share Registrar on the (iv) The corporate shareholders having CDC accounts are required to have their National Tax Number
Bank Mandate Form placed at the end of Annual Report. CDC Account Holders are required to kindly (NTN) updated with their respective participants, whereas corporate physical shareholders should
contact their Participants / Brokers / Investor Account Services Department for record of Bank Mandate. send a copy of their NTN certificate to the Company or its Share Registrar, M/s. Technology Trade
(Pvt.) Limited. The shareholders while sending NTN or NTN certificates, as the case may be, must
As per the Circular No.18 dated June 05, 2012 of SECP and its Notice No.8(4)SM/CDC 2008 dated April
quote company name and their respective folio numbers.
05, 2013 listed Companies are advised to encourage their shareholders to provide dividend mandate for
payment of cash dividend electronically to make the process of dividend payment more efficient, the Statement under section 160 of the Companies Ordinance, 1984 pertaining to the Special business
Company is making required arrangements for providing this facility in phased manner.
This statement sets out the material facts pertaining to the Special business to be transacted at the Annual
7. Submission of Valid CNIC (Mandatory) General Meeting of the Company to be held on April 15, 2017.
As per SECP directives the dividend warrants of the shareholders whose valid CNICs, are not available Item 5 - Circulations of Annual Reports through CD/ DVD/ USB
with the Share Registrar could be withheld. All shareholders having physical shareholding are therefore
Securities and Exchange Commission of Pakistan has vide S.R.O 470(1)/2016 dated 31 May 2016 allowed
advised to submit a photocopy of their valid CNICs immediately, if already not provided, to the Company's
the companies to circulate the annual reports including annual audited accounts, notices of annual general
Share Registrar at the following address, M/s. Technology Trade (Pvt) Ltd. Dagia House, 241-C, Block-
meetings and other information contained therein of the Company to its members through CD/DVD/USB
2, P.E.C.H.S., Off: Shahrah-e-Quaideen, Karachi without any further delay.
subject to consent of the shareholders in the general meeting.
8. Deduction of Withholding Tax on the Amount of Dividend
After approval of the shareholders, the Company will place a Standard Request Form on its website to
Pursuant to SECP directives vide Circular No.19/2014 dated October 24, 2014 SECP has directed all communicate their need of hard copies of the documents along with postal and email address of the Company
companies to inform shareholders about changes made in the section 150 of the Income Tax Ordinance, Secretary / Share Registrar to whom such requests shall be made. The Company shall supply the hard copies
we hereby advise shareholder as under; of the aforesaid document to the shareholders on demand, free of cost, within one week of such demand.
(i) The Government of Pakistan through Finance Act, 2016 has made certain amendments in section Accordingly, the directors have placed the matter before the shareholders for their approval and to pass the
150 of the Income Tax Ordinance, 200I whereby different rates are prescribed for deduction of ordinary resolution as proposed in the notice of meeting. This is in compliance to the above mentioned
withholding tax on the amount of dividend paid by the companies. These tax rates are as under: notification of Securities and Exchange Commission of Pakistan and the Directors and Shareholders are
interested to this as Directors & Shareholders.
– for filers of income tax returns: 12.5 %
– for non-filers of income tax returns: 20.0 %

45
Sustainability Report
Status of previous approval for investment in associated company. Energy Conservation

Keeping in view the energy crisis in the country, the company has over time taken steps to reduce its consumption of electricity
As required under clause 4(2) of SRO No. 27(1)/2012 dated January 16, 2012 the status of investment in our in its premises by taking the following measures:
associated Company EFU General Insurance Ltd., against approval obtained by the Company in Annual
• Gradual replacement of all lighting emitting sources with energy savers
General Meeting held on April 5, 2014 for two years and further extended it for next three years by a Special
• Replacement of all CRT based computer monitors with energy efficient LCD screens
Resolution passed at Annual General Meeting on April 2, 2016 is as under:
• Introduced Thin Clients which consume 88% less energy as compared to desktop PCs, thus cutting down electricity costs
a) total investment approved; and heat emissions.
Occupational Safety and Health
Rs.100 million approved by the shareholders at Annual General Meeting of April 05, 2014 to be invested
The company believes that proving a safe and pleasant working environment to its staff is one of its core responsibilities as an
within a period of two years which was revalidated by a Special Resolution on April 2, 2016 to extend employer. We have taken various steps to ensure that the employees are provided a safe working environment and have the
the period of investment up to next three years. access to opportunities to develop a healthy lifestyle.
b) amount of investment made to date; • All permanent employees are covered by a comprehensive Health insurance scheme, Group Life and pay continuation cover
• The office is secured by armed security personnel
Nill • CCTV cameras are setup at key locations within the office premises
c) reasons for not having made complete investment so far where resolution required it to be • Smoke alarms are installed within the premises along with fire extinguishing facilities
implemented in specified time; • The Company adheres to strict no smoking policy in its offices for both employees and visitors.
Environmental protection measures:
The period in which the investment is to be made as approved by the shareholders is up to April 4, 2019.
EFU LIFE is using state of the art Enterprise Content Management technology from IBM Filenet to digitalize paper documents
d) and material change in financial statements of associated company or associated undertaking and automate its business processes and operational workflows (BPM). In 2015, the technology was further implemented in
Claims (COD) & Bancassurance (BOD) departments.
since date of the resolution passed for approval of investment in such company.
ECM is the standard way to manage and organize not only paper document, but all forms of organizational content stored in
Since the date of passing the resolution by the shareholders of the Company on April 05, 2014 the diversified formats. Organizations working in the ECM environment carry out most of their operations using digital documents,
shareholders equity of the investee company has increased to Rs.16,901 million from Rs.13,111 million stored electronically. Managing organizational content in this way requires specific strategies, methods and tools.
due to increase in Reserves of Rs.3,790 million. 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.
Automating content through the use of Business Process Management is a key enabling factor in improving process efficiency,
business agility, continuous process improvement, process quality and eventually customer satisfaction.
EFU LIFE has a keen eye on ensuring that the environment in which we are working stays green. We have minimized the usage
of filing cabinets, shelves, physical space, paper documents and files which eventually cause paper-pollution and deforestation;
thus creating a positive impact on green house environment which exacerbates global warming. Additionally, in line with this
objective we have focused on centralized printers which are more energy efficient and environmental compliant.
Policy for safety of records of the company:

In addition to having a data centre which is equipped with the latest technologies like virtualization, robotic tapes, Flex Technology,
blade servers, SAN and NAS storage devices, we have a Disaster recovery plan in place and also a paperless ECM solution to
digitally store our physical records. The company has two DR sites both located in Karachi, and data back-ups are taken on daily
basis. All of these measures help us ensure 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 critical business data.
IT functions with ensuring continuous business operation in case of system or enterprise disaster or failure are 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 Optic Technology.
Disclosure of IT Governance Policy

EFU LIFE had moved forward to develop a better and more comprehensive service management structure. All IT strategies are
closely aligned with the business requirements of the company drilling down to departmental objectives. EFU Life is committed
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 ensure
compliance 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 and practices
related to the security, risk assessment and compliance of rules and regulations used in support of Information Security Policies
and Procedures.

47
Audit Committee - Terms of Reference Report of the Audit Committee
The terms of reference of the Audit Committee are laid down by the Board of Directors in accordance with the terms The Audit Committee comprises of one independent and three non-executive directors. The Chief Executive Officer
of reference listed in the Code of Corporate Governance. The terms of reference are as follows: (CEO), Chief Financial Officer (CFO) and the external auditors attend Committee meetings by invitation as and when
required. The Chief Internal Auditor (CIA) attends Committee meetings as Audit Committee Secretary. Four meetings
1. Determine appropriate measures to safeguard the assets of the company. of the Committee were held during the year 2016. Based on the reviews and discussions in these meetings, the
2. Review of preliminary announcements of results prior to publication. Committee reports that:
3. Review quarterly, half yearly and annual financial statements before they are approved by the Board of Directors, 1. The Committee reviewed and approved the quarterly, half yearly and annual financial statements of the Company
focusing on major judgmental areas, significant adjustments resulting from the audit, the going concern assumptions, and recommended them for approval of the Board of Directors.
any changes in accounting policies and practices, compliance with applicable accounting standards and compliance
with listing regulations and other statutory and regulatory requirements and significant related party transactions. 2. The Company issued a Statement of Compliance with the Code of Corporate Governance which has also been
reviewed by the external auditors of the Company.
4. Facilitate external audit and discuss audit observations with the external auditors and any matter that they may
3. The Chief Executive Officer and the Chief Financial Officer have endorsed the financial statements of the Company
wish to highlight (in the absence of management, where necessary).
and the Directors' Report. They acknowledge their responsibility for true and fair presentation of the financial
5. Review management letter issued by external auditor as well as the response of management to the letter. statements and compliance with regulations and applicable accounting standards.
6. Ensure that proper coordination takes place between external and internal auditors. 4. The financial statements have been prepared in accordance with the approved accounting standards which
comprise of such International Financial Reporting Standards (IFRS) as applicable in Pakistan.
7. Review the scope and extent of the internal audit department within the company and ensure that internal audit
department has sufficient resources to carry out their tasks effectively and that the department is appropriately 5. Appropriate accounting policies have been consistently applied in preparation of financial statements and
placed within the company. accounting estimates are based on reasonable and prudent judgment. The financial statements prepared by the
management of the Company present fairly its state of affairs, the result of its operations, cash flows and
8. Consideration of major findings of the internal investigations of activities characterized by fraud, corruption and changes in equity.
abuse of power and management's response thereto.
6. Proper books of accounts have been maintained by the Company.
9. Ascertain that the adequate and effective internal control system including financial and operational controls,
7. The Committee reviewed and approved all related party transactions and recommended them for approval of
accounting system and reporting structure are in place within the company.
the Board of Directors.
10. Review the Company's statement on the internal control systems prior to endorsement by the Board of Directors.
8. The Company's system of internal control is sound in design and is continually evaluated for effectiveness
11. Institute special projects, value for money studies or other investigations on any matter specified by the Board of and adequacy.
Directors, in consultation with the Chief Executive and consider communicating any mater to the external auditors 9. For appraisal of internal controls and monitoring compliance, the Company has in place and appropriately
or to any other external body. staffed, Internal Audit department. The Committee reviewed the resources of the Internal Audit department
12. Ensure that the company complies with all the rules and regulations and statutory requirements. to ensure that they were adequate for the planned scope of the Internal Audit function.
13. Monitor compliance with the best practices of Code of Corporate Governance and identification of any significant 10. The Committee on the basis of the internal audit reports reviewed the adequacy of controls and compliance
violations thereof. shortcomings in areas audited and discussed corrective actions in the light of management responses. This has
ensured the continual evaluation of controls and improved compliance.
14. Recommend to the Board of Directors the appointment and audit fees of external auditors and consider any
11. The external auditors M/s KPMG Taseer Hadi & Co., Chartered Accountants had direct access to the Committee
question pertaining to the resignation or removal of external auditors.
and necessary coordination with internal auditors was ensured. Major findings arising from audits were
15. Consideration of any other issue or matter as may be assigned by the Board of Directors. also discussed.
The committee comprises of four members, including the Chairman of the committee, three of them are non-executive 12. The Committee reviewed the letter issued by the external auditors and the management response thereto.
directors and one is an independent director. 13. Appointment of external auditors and fixing of their audit fee was reviewed and the Committee following this
review, recommended to the Board of Directors for re-appointment of M/s KPMG Taseer Hadi & Co. as external
auditors and Shariah auditors for the year ending December 31, 2017.

49
Report of the Directors
to the Members
The Directors of your Company are pleased to present to Individual Life regular premiums (including Takaful Single Premium has slowed down this year, recording a Investment Performance:
you the Twenty Fifth Annual Report of the Company for contributions) increased by 14.5% reaching a total premium premium of Rs.4.4 billion (2015: 13.3 billion). This is mainly
The net asset value of all unit linked funds under management
the year ended 31 December 2016. of Rs.17.84 billion (2015: Rs. 15.6 billion). Renewal premium due to the shift in the business strategy of one of our bank
increased from Rs. 81.5 billion to Rs. 96.5 billion in 2016, a
base increased to Rs. 13.5 billion (2015: Rs. 11.86 billion), partners who contributed significantly to this line of business
A review of the industry: growth in size of 19%. This size of funds under managements
a growth of 13.92%. The Company's focus on superior during 2015.
has made your Company one of the leading asset managers
The life insurance and family takaful industry of the country levels of client servicing and retention has resulted in
2016 is the first full financial year of your Company's in the private life insurance sector as well as amongst all
comprises of nine players. With a 24 year rich history of maintaining a high level of persistency during the year. The
Window Takaful operations - Hemayah (details later in the asset management companies in Pakistan.
successful life insurance operations, your Company is one overall persistency (2nd year and onwards) of individual
report). The company achieved an Individual Family takaful The Managed Growth Fund is the largest unit linked fund
of the leading players in the private life insurance sector. life business was 86.6% (2015: 85.3%).
new business of Rs.666 million (2015: 236 million). For of the Company with net asset value of Rs. 90.57 billion
Based on the Annual In 2015 figures, the life insurance
The Group Benefits line of business achieved a gross Group Family Takaful, the Company achieved a business (2015: 78 billion). The fund has provided consistently good
gross premium crossed the Rs.150 Billion mark, registering
premium, including Takaful contributions, of Rs. 2.4 billion of Rs. 51.7 million. (2015: 13 million). returns to our clients over medium to long term. The
a 5 year annualized growth of close to 25%. Consistent
(2015: Rs 2.12 billion), registering a growth of 14.4%. annualized return (net of all charges) is 13.53% since
with the trend in the last 5 years, distribution channels, Claim payments:
predominantly bancassurance have continued to drive the The Gross Premium growth trend over the last 5 years is inception of the fund. The annualized return over last 3 years
The Company has a robust claims management system is 16.19%, and one year return on the fund was 17.29%.
growth momentum of the private life insurance sector. as follows (including Takaful contributions in 2016):
which ensures implementation of the Company's philosophy
The regulatory environment for life insurance remained GROSS PREMIUM GROWTH The performance of the other unit linked funds, which
of prompt claims settlement.
5 YEAR SUMMARY have their specific investment strategies, are as follows:
conducive to growth, with the Securities and Exchange
(Group Benefits & Individual Life Regular Premium) The Company paid total death and disability claims of
Commission of Pakistan taking a lead on many fronts in Aitemad Growth Fund - interest free investments, and
(Rupees in Billions) Rs.2.43 billion (2015: 1.77 billion) with individual and group
engaging with the industry and strengthening the regulatory 20.28 has provided an annualized return (net of all charges)
life claims amounting to Rs.787 million and Rs. 1.64 billion,
regime in various areas. of 19.32% over 2016. The 3 years annualized return is
17.72 respectively in 2016.
15.67 16.96% p.a.
Business Performance:
13.82 GROSS DEATH & 2 430
DISABILITY CLAIMS Guaranteed Growth Fund - stable investment strategy
Your Company's gross premium (including Takaful
5 YEAR SUMMARY with assured guaranteed bid price. This fund has
contributions) was Rs. 24.7 billion. The gross premium 11.71
(Rupees in Millions) provided an annualized return (net of all charges) of
composition in 2016 was as follows:
1 640
6.42% over last three years.
787
1 640 The Company has a strong balance sheet size with total assets
GROSS PREMIUM increasing by 17% during the year at Rs. 106.3 billion (2015:
COMPOSITION Rs. 91.3 billion). The composition of assets is as follows:
17.84
15.60
13.91
606
530
10% ASSETS COMPOSITION
18%
10.33
12.23
18% 1 083
1% 2%
1 170
36%
289
326
1643
1163
1110
46%
794
2.44
2.12
844
1.77
3%
1.59
1.38
55%
12%
First Year Premium Single Premium Government Securities Shares and Mutual Funds
2012 2013 2014 2015 2016
Renewal Premium Group Benefits 2012 2013 2014 2015 2016 Cash and Bank Deposits Other Fixed Income Securities
Group Benefits Individual Life Regular Premium Current Assets Fixed Assets
Group Benefits Individual Life

51
Product Range: Company launched its window takaful operations on 6 Insurer Financial Strength Rating:
February 2015 under a dedicated brand “Hemayah”,
The Company offers products which focus on the needs During the year, the Company's IFS rating was upgraded
through its individual life and takaful sales force, bank
of child education and marriage, retirement planning, to AA+ (Outlook: Stable) by JCR VIS Credit Rating Agency.
partners and group benefits setup.
savings and wealth accumulation, Islamic products and The rating takes into account the Company's strong
protection products. The Company has a comprehensive During 2016, the new business contribution of takaful in capitalization level vis-à-vis the nature of risks underwritten
product range with the depth to reach into all the main the Individual Life/Family takaful segment was as follows: and the very high capacity to meet policyholders' obligations.
segments of our society. The rating enhancement is also a confirmation of the fact
that the Company is on strong financial footing and is the
In 2016, the company further consolidated its family takaful 15% market leader in the life insurance sector in terms of long
product range. At the same time, the Company ventured
term sustainable business strategies, innovative products,
into inclusive insurance products to extend its outreach to
superior systems and IT infrastructure, satisfied clients and
the masses and launched innovative financial solutions with
prudent investment policies resulting in good medium to
telecommunication companies, branchless banking as well
long term returns to our clients.
as microfinance institutions.
Our new home - EFU Life House, Karachi
The Company also launched Doctor Connect, a second
medical opinion service, in collaboration with Best Doctors, In December 2016, the Company moved its Head Office
providing access to the world's leading health professionals 85% to purpose built office building - the EFU Life House in
and doctors who can give an invaluable medical opinion Karachi in Phase 1, of Defence Housing Authority. This
when it is needed the most. Individual Life New building marks a milestone in our Company's history.
Family Takaful New Business Constructed with modern materials and equipped with
Distribution Strengths:
state of the art systems, the EFU Life House is an
The Company has maintained its focus on further enhancing embodiment of sophistication to match and further uplift
The Company expects this new line of business to grow
the reach of its distribution channels. The three main the caliber of our people and teams. We continue to believe
over time and contribute positively to Company's overall
channels are Individual Life sales force, Individual Life that our continued success is dependent entirely upon our
performance.
bancassurance and Group Benefits. During 2016, the people, and the EFU Life House stands as a testament to
Company also focused on developing alternative distribution For its investment linked takaful business, the Company that belief by providing our staff with the state of the art
channels such as telecommunication operators and launched a new unit linked fund “Takaful Growth Fund”. premises and the finest of working conditions.
branchless banking setups.
Critical performance measures: Awards and Achievements:
The branch network of the individual life and family takaful
The Company evaluates its performance on certain key Your Company's performance and market leadership was
sales force was 200 locations across the country.
defined measures such as: recognized by various independent entities during the year.
Bancassurance is the second major contributor to the
The Company received the following prestigious awards
Company's business and has continued to grow over the • Growth in premium for each line of business
during 2016:
years. The Company has partnerships with 14 banks. • Persistency of individual life business by distribution
channel • 'World Finance Global Insurance Award 2015' in the
Group Benefits is the third and a sizable distribution channel
• Loss ratio analysis 7th Annual Global Insurance Awards by World News
of the Company targeting corporate entities. During 2016,
• Expense ratios and trends Media, securing the top position in the life insurance
an improvement was seen in the overall industrial and
sector in Pakistan.
corporate sector of the country resulting in a good growth • Mortality and morbidity experience
in the Group Benefits premium. • Growth in profitability for each line of business • Certificate of Excellence' for the consecutive time by
The Company expects these parameters to be relevant for Management Association of Pakistan (MAP) in the
Family Takaful: category of Commercial Banks & Insurance Sector,
future as well and will continue its internal performance
Your Company is the first life insurance Company to receive measurement based on this criteria. recognizing the exemplary standards of management
approval from the Securities and Exchange Commission of practices.
Pakistan to operate as Window Takaful Operator. The

53
• '1st Runner Up for the Best Corporate Report (BCR) To upgrade its telephony platform, with a focus on cost linked to international professional bodies in the field of CSR Initiatives
Award 2015' in the Non-Banking Financial Institutions saving, the Company replaced its traditional PSTN with actuarial science, finance, accounting, underwriting and Meri Shaan Mera Pakistan-Beautification through wall
Category by Institute of Chartered Accountants of VoIP Technology offering enhanced new-age features. This claims management art
Pakistan (ICAP) and Institute of Cost & Management new technology covers the Head Office as well as the
The Company has in place a succession plan for key Marking the 69th year of Independence of Pakistan, EFU
Accountants of Pakistan (ICMAP) for best presented expansive distribution network of the Company.
individuals of the management team. The succession plan Life launched 'Meri Shaan Mera Pakistan' a beautification
accounts, improvement in transparency, accountability,
The usage of the state-of-the-art Point of Sales system takes into account the skill set of the individual, the existing project in collaboration with Commissioner Karachi Division
and governance.
continued with penetration into the Family Takaful role being fulfilled as well as expansion in the role based to reclaim the walls of major public areas of the City through
• 'Certificate of Merit' by South Asian Federation of Operations. The system optimizes the process of insurance on the future growth prospects of the Company. The thematic wall art, aimed at eradicating wall chalking and
Accountants (SAFA) for Best Presented Accounts 2015 sales in bank branches as it works in a live environment succession plan is updated periodically to keep in line with negativity on walls. The campaign rejoiced the spirit of
in the insurance sector, within South Asian countries. with a strong underwriting engine that automates the the future strategy of the Company. patriotism and depicts the rich cultural heritage of Pakistan.
• 'Consumer Choice Award 2015' for Best Life Insurance insurance application approval process. The client experience Celebrating the cultural diversity of its people and yet
Environment
Company in Pakistan for 8th consecutive time, for is enhanced and at the same time the turn-around time unified under the nation's flag is the underlying theme of
excellence in management practices and service quality. for issuance of a policy is reduced to a few minutes. A The Company has consciously invested in technology to the campaign. This project has been rolled out in Karachi
version of POS is also available on the mobile technology reduce the usage of paper in its offices. The Enterprise at Ayesha Manzil, and National Coaching Centre.
• 'CSR Award 2016' in the category of Social Impact by
platform. Content Management technology from IBM Filenet has
The Professionals Network and Ethical Business Update Tree Plantation Drive
over time expanded into key functions of the Company, to
(EBU) in recognition of the Company's efforts in areas Recognizing the need for effective business intelligence,
digitalize paper documents and automate business processes A Tree Plantation Drive was initiated by EFU Life at Jinnah
of health and education. the Company is leveraging BI technology to improve its
and operational workflows (BPM). The Company keeps eyes Post Graduate Medical Centre (JPMC), under the slogan
business effectiveness in various functions. The core features
• 'Best Life Insurance Company 2016' in Pakistan in on ensuring that the work environment stays green. Due 'Keep JPMC Clean and Green' to commemorate the 4th
include reporting and analytics to facilitate decision making.
International Finance Awards by Acquisition International to this system, the Company has minimized the usage of Insurance Day in Pakistan. The drive involved plantation of
showcasing the achievement, innovation and dedication The Branch Operations Support System is an integrated filing cabinets, shelves, physical space, paper documents trees and installation of trash cans, to address global
to the international finance industry. solution for branches that offers the convenience of front- and files which eventually cause paper-pollution and warming-induced climate change and its adverse impact
• 'Who's Who Professional's Award' conferred to the end access to all current branch operational system under deforestation; thus creating a positive impact on the green on the environment.
Company's CEO for his outstanding contribution to the one connectivity screen. house environment which exacerbates global warming.
Blood Donor Drive
insurance industry of Pakistan.
The Company further enhanced the features of its mobile Capital Management and Liquidity
Continuing our support towards the cause of saving lives,
• Revalidation of ISO-9001:2008 Certification apps - PlanIT (for clients) and Agent app (for the individual
The Company has adequate capital to support its existing and endorsing this year's Blood Donor day theme of 'Blood
life sales force). These apps provide a new engagement
Technology and Operational efficiencies: operations. The Company's paid up capital of Rs.1 billion Connects Us All', EFU Life conducted a blood donor drive
platform with our clients and sales channels resulting in
Your Company as always continued its focus on the is the highest in the private life insurance sector. at its Head Office with Afzaal Memorial Thalesemmia
higher levels of service and customer satisfaction.
technology. Foundation (AMTF). An awareness session on Thalesemmia
The Company's liquidity position continue to remain very
Human Resource Management: was conducted for the employees, followed by Thalesemmia
Technology revolves around the heart of our day to day strong with cash and cash equivalents at the end of 2016
screening and blood donation drive.
Your Company continued to focus on career development of Rs.12.4 billion.
operations and business. With this in mind the Company
of its professional life insurance management team. Our Joining hands For A Life
has made a significant investment in upgrading its Data
staff includes experienced insurance sales personnel, Related Party Transactions
center. The core focus of this design has been to ensure This Ramadan, we endeavored to bring colors in the life of
accountants, IT professionals, underwriters, medical doctors, At each board meeting the Board of Directors approve the
24x7x365 operations, uninterruptible power sources (UPS), many. We partnered with four NGO's, in areas of education
lawyers, business management graduates and actuaries, Company's transactions made with Associated Companies
environmental control, physical security systems, precision and health, namely, FESF, SIUT, LRBT, and Dar ul Sukun,
to name a few. The Company believes that investment in and Related Parties. All such transactions are executed on
cooling, fire separation system and network security. by launching mass social media campaign 'Join hands for
developing and motivating staff plays a pivotal role in their arm's length basis.
The Company partnered with Monet, to provide devices a Life'. Each NGO was dedicated a week on the Company's
positive contribution to the current and future success of
connectivity for real time payment mechanisms through a Risks to business: official social media pages. For any Comment, Like or Share
the Company.
mobile platform. Linking to a smart mobile device via a on any of the posts of the NGO during the week, a donation
Business risks and mitigation factors are described in detail
The Company actively supports its staff to acquire relevant of Rs.10 was made by the company to the respective NGO.
card reader, clients can make payments through Debit/Credit on note 29 of this Annual Report.
professional qualifications and has in place career programs
Cards, offering convenience and portability.

55
In addition to the social media presence, there were activities Compliance with Code of Corporate Governance consistency in application of policies and procedures, strategy of the Company. It is kept updated on the status
conducted internally to generate funds, and create compliance with the laws and regulations. The Committee of all large and important claims, particularly claims falling
The requirements of the Code of Corporate Governance
awareness about the work the NGO's are involved in. For comprises of the following members: under catastrophic events. The Committee oversees claims
set out by the regulatory authorities have been duly complied
FESF, there was a training session for the staff along with analysis and also ensures that adequate measures are taken
with. A statement to this effect is annexed with the report. 1. Hasanali Abdullah (Chairman)
a craft shop set up for sale of items developed by special 2. Saifuddin N. Zoomkawala to combat fraudulent claims. In addition, the Committee
children of FESF. For Dar ul Sukun, we ran a “Trash The Directors of your Company were elected at the Extra 3. Muneer R Bhimjee also decides on how to manage claims submitted to courts/
Campaign” for donation of items by the employees intended Ordinary General Meeting held on June 20, 2014 for a 4. Kamal Afsar Insurance Ombudsman/ Insurance tribunal and decides the
to help Dar ul Sukun to generate financial value from waste term of three years expiring on June 21, 2017. way forward.
Investment Committee
material and unproductive items. Moreover, donation boxes
The number of meeting attended by each Director is given Reinsurance Committee
were placed at the premises to encourage donations and The Company has a Board level Investment Committee.
hereunder:
flyers sent to our clients to spread awareness on the cause The Committee is also responsible for developing the This Committee ensures that adequate reinsurance
of each of the NGO's and ways in which they can contribute. Sr. Number of meetings investment policy for the various funds managed by the arrangements are made for the Company's businesses. It
No Name of Directors attended Company. The Committee comprises of the following evaluates the proposed reinsurance arrangements prior to
Business Ethics, Consumer Protection and anti- members: their execution, reviews the arrangements from time to
1. Rafique R Bhimjee 4 out of 4
corruption measures (Non-Executive Director) time and subject to the consent to the participating
1. Rafique R Bhimjee (Chairman)
The Board has adopted the statement of ethics and business 2. Saifuddin N. Zoomkawala 4 out of 4 reinsurers, and makes appropriate adjustment to those
(Non-Executive Director) 2. Saifuddin N. Zoomkawala
practices. All employees are informed of this statement arrangements in the light of the market development. It
3. Taher G. Sachak 4 out of 4 3. Taher G. Sachak
and are required to observe these rules of conduct in relation also assesses the effectiveness of the reinsurance program
(Executive Director) 4. Hasanali Abdullah
to business and regulations. Statement of Ethics and business for future reference.
4. Muneer R. Bhimjee 3 out of 4
practices are based on integrity, dignity, culture of excellence (Non-Executive Director) Ethic & Human Resource and Remuneration Committee
Risk Management and Compliance Committee
and ethical dealing with clients, peers and the public. 5. Hasanali Abdullah 4 out of 4 The Committee is responsible for recommending to the
(Non-Executive Director) The committee ensures that the risk management and
Relationship with other Stakeholders Board resource management policies of the Company as
6. Heinz Walter Dollberg 3 out of 4 compliance function is effectively working in the
(Non-Executive Director) well as selection, evaluation and compensation of the key
Your Company strives to maintain good relationship with: organization, monitors that compliance function with
7. S. Salman Rasheed 3 out of 4 officers of the Company. The Committee comprises of the
various regulations are in place and recommends and assist
• Its employees by providing a positive work environment (Non-Executive Director) following members:
the Board in implementation of the decisions taken by the
• Its clients through building trust and providing quality 8. Kamal Afsar 4 out of 4
(Independent Director) 1. Rafique R Bhimjee Board with respect to the possible risks.
service
9. Mahmood Lotia 4 out of 4 2. Saifuddin N. Zoomkawala
• The business community through honest and fair dealing Corporate and Financial Reporting Frame Work
(Non-Executive Director) 3. Taher G. Sachak
• The Government through promoting free enterprise a) The financial statements prepared by the management
along with competitive market system and comply with Board Committee Management Committee of the Company present fairly its state of affairs, the
all applicable laws; and Your Company maintains the following three Board As part of Corporate Governance, your Company maintains result of its operations, cash flow and changes in equity.
• Society in general through providing safe and healthy Committees. following four management Committees which meet at b) Proper books of accounts have been maintained by the
workplace and employees the opportunity to improve least once every quarter:
Audit Committee: Company.
their skills
Underwriting Committee c) Appropriate accounting policies have been consistently
The Board is responsible for effective implementation of a
Contribution to National Exchequer applied in preparation of financial statements and
sound internal control system including compliance with The underwriting Committee formulates the underwriting
accounting estimates are based on reasonable and
Your Company contributes substantially to the national control procedures. The Audit Committee is assisted by the policy of your Company. It sets out the criteria for assessing
prudent judgment.
economy in terms of taxes and duties and the contribution Internal Auditor in reviewing the adequacy of operational various types of insurance risk. The Committee regularly
is increasing as the company grows. This year the Company controls and in monitoring and managing risks so as to d) The International Accounting Standards, as applicable
reviews the underwriting and premium policies of the
contributed Rs. 913 million to the national exchequer in provide reasonable assurance that such system continues in Pakistan, have been followed in preparation of
Company with due regard to relevant factors such as its
the form of Income Tax, Federal Excise Duty, Sales Tax, to operate satisfactorily and effectively in the Company financial statements and any departure there from has
business portfolio and the market development.
stamp duty etc. and to add value and improve the Company's operations been adequately disclosed.
by providing independent and objective assurance. The Claim Settlement Committee e) System of internal control is sound in design and has
principal responsibility of the Internal Auditor is to conduct The Committee is responsible for directing the overall claim been effectively implemented and monitored.
periodic audit to ensure adequacy in operational controls,

57
Risk and Opportunity Report
f) There are no significant doubts upon the Company's this will result in more lives being covered under the Risk and Opportunity Report: The Company considers the following to be important risks:
ability to continue as a going concern. insurance net, resulting in significant social benefits for the
masses. With the expansion of the distribution channels, Category of risk Risk Impact Plans and strategies for mitigating these risks
g) There has been no material departure from the best
practices of Corporate Governance, as detailed in the it is, expected that life insurance industry will focus more Operational Risk Regulatory changes The Company believes in having a transparent and open
listing regulations. on improving the productivity. relationship with the regulator. Representatives of the
Company are part of the discussion process with the
h) The key operating and financial data for the last six With the opening up of window takaful operations during regulator for potential changes to regulatory environment.
years is annexed. 2015, and several window takaful operators having started The Company works closely with peers on matters of
importance for the insurance industry.
i) The value of investments of provident and pension operations, we expect takaful to also contribute positively
funds based on their un-audited accounts as on Human Resources The Company provides a professional working environment,
in increasing the size of the insurance pie. Investment on
market competitive remuneration and career enrichment
December 31, 2016 were the following. IT will continue, especially adopting new trends in opportunities. Succession planning is in place for key employees.
Provident Fund Rs.393 Million technology, and will be one of the key aspects of the Temporary loss of Business Continuity Plan is in place.
Pension Fund Rs.265 Million industry's strategy. The Company expects investments in business continuity
The value of investments includes accrued interest. enhancing the technology base for back-end operations Loss of Data, Technology Disaster Recovery Plan is in place.
and for front end sales and services to clients. failure, Data Security
j) Trading of Shares by Chief Executive, Directors, Chief
Financial Officer, Company Secretary, their spouses and Financial Risk Adverse changes in the The Investment monitoring setup governed by the
Acknowledgments:
equity market and interest Investment Committee ensures a diversified portfolio of
minor children: rate environment securities with continuous monitoring of the economy,
We wish to recognize and place on record our appreciation
Purchase of Shares: No. of Shares as well as equity, debt and money markets. Investment
of the contribution made by our Appointed Actuary Mr. Policy takes into account limits of exposure in the equity
Mr. Salman Rashid 154,495 Omer Morshed for his invaluable advice on the overall market.
Sale of Shares: strategy of the Company. Default in debt instruments Prudent exposure limits are set with regular monitoring
Mr. Taher G Sachak 150,000 as well as investment in high credit rated securities.
We would also like to record our appreciation and gratitude to
k) The statement of shareholding in the Company as at Reinsurance Risk Default of reinsurer on its Use of internationally regulated reinsurers with high credit
Munich Re of Germany who are your Company's main reinsurers obligations, or its exit from ratings, and maintaining a diversified portfolio of reinsurers.
31 December 2016 is included with the Report. and who continue to provide full support to your Company. Pakistan
Our Auditors Messrs. KPMG Taseer Hadi Chartered
Our gratitude is also due to EFU General Insurance Ltd. for Commercial Risk Increased competition from The Company focuses on its brand equity and financial
Accountants, retire and willing to continue are existing and new players strength, as well as pricing, product features and customer
their continuous support and guidance, which has enabled in the industry services to always gain a competitive edge.
recommended for reappointment as Auditor of the
the Company to establish a strong presence in the market.
Company for the year 2017 as suggested by the Audit Reputational Risk Events or acts due to which the The Company maintains a strong and open relationship
Committee. Company's reputation with all stakeholders. Internal governance and control
The Directors wish to record their appreciation for the comes into question documents are in place to aid good governance. Prompt
Future Outlook of the industry: tremendous contribution made by the able and eminent and effective communication is carried out.
The vibrancy in the life insurance sector continued in 2016 officers, staff and field force of the Company towards its
development and growth. Their continuous commitment Opportunities:
and your Company maintains a positive outlook on the
to high ethical standards, client service and hard work has Pakistan's life insurance penetration rate is 0.54%, one of the lowest in the world. Such a large uninsured population provides
future of the industry. The sector has been in a high-growth a significant opportunity to the Company in the following areas:
mode during the last few years and the Company expects helped your Company emerge and maintain its position as
• Increasing reach to all parts of the country through expanding distribution network, and identification and utilization of
this growth momentum to continue. Primarily the main a clear market leader amongst private sector life insurers. emerging and unconventional channels.
driving force for this growth is the increased penetration • Focus on insurance awareness through continuous investments in communication channels and market education.
Finally, we would like to thank our clients for the confidence
of distribution channels, and investment by market players • Focus on “Inclusive Insurance” approach by offering affordable financial planning solutions for the micro and mass segments.
expressed in us and also to the Insurance Division of the
to explore alternative channels. There is keen interest from • Offer takaful solutions through window operations.
Securities and Exchange Commission of Pakistan for their
the insurance sector on the development of micro and • With increasing mobile penetration amongst the masses, utilize such platforms for customer interaction, awareness, marketing
guidance, co-operation and understanding extended to us and sales.
mass market insurance, and your Company believes that throughout the year.
Key sources of uncertainty:
The Key sources of uncertainty in estimation of future benefit payments and premium receipts are as follows:
HASANALI ABDULLAH SAIFUDDIN N. ZOOMKAWALA TAHER G. SACHAK RAFIQUE R. BHIMJEE • Adverse Mortality and Morbidity experience
Director Director Managing Director & Chairman
• Unexpected changes in Lapses and Surrenders
Chief Executive
• Expense overruns
Karachi February 14, 2017
• Interest rate movements

59
DuPont Analysis For the year 2016 Summary of Cash Flow
(Rupees in '000)
Revenue
39,690,778 Summary of cashflow statement for the year ended 31 December 2016
Profit
Cashflow 2016 2015 2014 2013 2012 2011
after Tax
–
1,872,896 Net cashflow from operating Activity 212 450 15 860 606 7 939 450 5 765 564 5 045 710 3 938 800
Net Profit Expenses Net cashflow from investing Activity ( 1 223 448 ) ( 8 220 388 ) ( 7 237 128 ) 614 911 ( 3 911 095 ) ( 3 198 668 )
Margin / 37,817,882 Net cashflow from financing Activity ( 1 000 000 ) ( 900 000 ) ( 650 000 ) ( 490 000 ) ( 552 500 ) ( 425 000 )
4.72%
Return on Revenue Cash and cash equivalent 12 395 589 14 406 587 7 666 369 7 614 047 1 723 572 1 141 457
Assets x 39,690,778
1.76% Asset Turn Current
Over / Asset
0.37 Times 15,224,044 100%
Return on
Equity
/
Total Assets
106,301,531
+
Non Current
45% Owners Asset
Equity 91,077,487 80%
Ownership
4,193,383 –
Ratio Current
3.94% / Total
Liabilities
Liabilities
60%
4,326,085
102,108,148
Total Assets +
106,301,531 + Non Current
Owners Liabilities 40%
Equity 97,782,063
4,193,383
20%
0
2016 2015 2014 2013 2012 2011
-20%
-40%
Cash and cash equivalent
Net cashflow from financing Activity
Net cashflow from investing Activity

Net cashflow from operating Activity

61
Performance at a Glance
Graphical Presentation
SHARE HOLDER’S EQUITY INVESTMENTS NET PREMIUM & SURPLUS BEFORE TAX PROFITABILITY
(Rupees in million) (Rupees in million) (REVENUE ACCOUNT) (Rupees in million)
45000 (Rupees in million)
3 000
40000
32000
35000 2 500
60000 28000
30000 50000 24000 2 000
25000
40000 20000
1 500
20000
30000 16000
15000 1 000
20000 12000
10000
10000 8000
500
5000
0 4000
2011 2012 2013 2014 2015 2016
0
0 0
Government securities 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016
2011 2012 2013 2014 2015 2016
Other fixed income securities
Net premium Surplus before tax Profit before Tax Profit after Tax
Paid-up capital Reserve Listed equities, mutual funds and unlisted equities
ASSETS & LIABILITIES GROSS / NET PREMIUM

(Rupees in million) (Rupees in million)
PROFIT (LOSS) AFTER
TAX & DIVIDENDS
33000 (Rupees in million)
30000 2 000 000
120000
EARNING PER SHARE &
27000 1 800 000
PRICE EARNING RATIO
1 600 000
100000 24000
1 400 000
21000 1 200 000
20.00
80000 1 000 000
18000
800 000 15.00
15000 600 000
60000 10.00
12000 400 000
5.00
200 000
40000 9000
0 0
6000 2011 2012 2013 2014 2015 2016
2011 2012 2013 2014 2015 2016
20000
3000
Profit (loss) Dividend Earning Per Share Price Earning Ratio
0
0
2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016
Assets Liabilities Gross Premium Net Premium

63
Key Financial Data
For The Last Six Years
Share Price Sensitivity Analysis (Rupees ‘000)
Earnings - News on earnings, profits and future positive cashflows develop interest of investors in the shares of the 2016 2015 2014 2013 2012 2011
company.
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 may Gross Premium 24 676 452 31 033 830 18 219 910 14 058 930 11 873 842 10 129 599
lead to changer in Inflation and interest rates, which may affect stock prices. REVENUE ACCOUNT
Industry specific performance - any changes in Govt. policies toward Insurance industry my result in movement of
stock prices Premium-net of reinsurance 23 861 851 30 351 972 17 595 939 13 365 479 11 301 615 9 597 263
Investor sentiments / confidence - Positive economic reforms can attract investors. Interest and other Income 8 128 626 8 117 383 6 796 578 4 748 784 3 949 224 2 817 408
Announcement of Dividends - Expected distribution from earning could increase in share prices in expectations of 31 990 477 38 469 355 24 392 517 18 114 263 15 250 839 12 414 671
realization of profits on investments.
Claims less reinsurance 17 764 439 8 941 518 4 714 369 3 483 942 2 625 301 2 360 779
250 Commission and Expense 5 535 953 5 415 109 4 727 382 4 274 210 3 438 858 3 309 327
200 Provision for Appreciation/
150 (depreciation) on investments 7 763 528 748 228 3 699 382 1 028 649 1 361 453 ( 235 264 )
100 Write back / (Provision) for doubtful debts

50 on available for sale fixed income securities – ( 6 559 ) 65 379 ( 160 407 ) ( 9 075 ) ( 40 501 )
0 Provision for Impairment for available for
sale Equity Investments 200 407 ( 22 201 ) 347 560 12 681 183 134 ( 39 257 )
Fe 16
ar 6
n-
1
6
Ja
b-
Capital contribution from Shareholders' fund 89 256

-1
6
r-1
6
M
-1
Ap
16
ay
n-
M
6
Ju
l-1
Changes in statutory Funds 13 945 180 22 606 826 17 639 714 9 838 720 9 329 724 5 548 728
16
Ju
g-
16
Au
Profit / (Loss) before tax 2 798 096 2 225 370 1 423 373 1 398 314 1 392 468 880 815
p-
Se
6
t-1
Provision for Taxation ( 925 200 ) ( 749 900 ) ( 472 472 ) ( 469 200 ) ( 478 350 ) ( 302 450 )
Oc
Analysis Of Variation In Results

6
-1
Profit / (Loss) after tax 1 872 896 1 475 470 950 901 929 114 914 118 578 365
v
No
16
Reported In Quarterly Accounts

c-
De
2 000 000 BALANCE SHEET

Investments 88 831 183 71 941 323 55 534 580 39 585 719 34 728 349 25 133 535
1 800 000
Cash & Bank balances 12 395 589 14 406 587 7 666 369 7 614 047 1 723 572 1 141 457
1 600 000 Other Assets 2 920 367 3 249 775 2 943 929 1 094 258 835 281 1 304 662
1 400 000
Fixed Assets 2 154 392 1 667 694 1 083 604 810 235 607 105 450 410
106 301 531 91 265 379 67 228 482 49 104 259 37 894 307 28 030 064
1 200 000
1 000 000 Issued Subscribed and paid-up capital 1 000 000 1 000 000 1 000 000 1 000 000 850 000 850 000
Accumulated surplus / (Loss) 1 543 383 1 459 743 1 083 773 1 032 872 1 011 758 650 140
800 000 Profit after tax General Reserve 1 650 000 950 000 750 500 500 500 232 500 232 500
600 000 Cumulative profit Balance of Statutory Funds 97 782 063 83 836 320 61 222 367 43 582 653 33 743 933 24 414 209
Other liabilities 4 326 085 4 019 316 3 171 842 2 988 234 2 056 116 1 883 215
400 000
106 301 531 91 265 379 67 228 482 49 104 259 37 894 307 28 030 064
200 000
0
Qtr 1 Qtr 2 Qtr 3 Qtr 4

65
Key Operating and Financial Data Graphical Analysis
Six years summary 2016 2015 2014 2013 2012 2011

Financial Ratios Balance Sheet
Profitability Ratios
Profit / (Loss) Before Tax / Gross Premium % 11% 7% 8% 10% 12% 9%
Profit / (Loss) Before Tax / Net Premium % 12% 7% 8% 10% 12% 9%
Profit / (Loss) After Tax / Gross Premium % 8% 5% 5% 7% 8% 6% ASSETS
Profit / (Loss) After Tax / Net Premium % 8% 5% 5% 7% 8% 6%
Gross Yield on Earning Assets % 6% 7% 8% 8% 9% 11%
Net Claims / Net Premium % 74% 29% 27% 26% 23% 25%
Commission / Net premium % 12% 10% 14% 17% 17% 22%
Acquisition Cost / Net premium % 18% 14% 21% 25% 25% 29% 2016 2015
Administration Expenses / Net premium % 5% 3% 5% 6% 6% 5%
Change in PHL / Net Inflow % 35% 57% 61% 52% 55% 44%
Net investment income / Net Premium % 66% 29% 59% 41% 46% 26%
Return On Capital Employed % 23% 22% 16% 15% 24% 17% 3% 2% 3%
12% 2%
Return on Equity % 45% 43% 34% 37% 44% 33% 16%
Liquidity Ratio
Current Ratio 3.54 4.39 3.35 2.91 1.24 1.30
Quick Ration 3.54 4.39 3.35 2.91 1.24 1.30
Cash to Current Liability % 287% 358% 242% 255% 84% 61%
Investment / Market Ratio
Breakup Value Per Share Rupees 41.93 34.10 28.34 25.33 24.64 20.384 79%
Earnings / (loss) per share (pre tax) Diluted Rupees 27.98 22.25 14.23 13.98 13.92 10.36 83%
Earnings / (loss) per share (after tax) Diluted Rupees 18.73 14.75 9.51 9.29 9.14 6.80
Price Earning Ratio -PAT Times 11.50 13.49 17.86 8.80 10.20 11.00
Investments Current assets Investments Current assets
Mkt. price per share at end of the year Rupees 215.47 199 169.85 81.71 93.23 74.8
Mkt. price per share - Highest during the year Rupees 247.47 260 177.99 96.45 97.00 79.80 Cash & bank balances Fixed assets Cash & bank balances Fixed assets
Mkt. price per share - Lowest during the year Rupees 162.3 140 80.60 68.01 62.00 50.70
Cash Dividend per Share Rupees 15 10 7.50 6.5 5.5 5
Price to book ratio 0.20 0.22 0.25 0.17 0.21 0.23
Cash Dividend % % 150% 100% 75% 65% 55% 50%
Dividend Yield % 7% 5% 4% 8% 6% 7%
Dividend Payout % 80.09% 67.78% 78.87% 69.97% 60.18% 73.53%
Dividend Cover Times 0.80 0.68 0.79 0.70 0.60 0.74 SHARE CAPITAL & RESERVES AND LIABILITIES
Stock Dividend per share Times – – – – 1.75 –
Bonus % % – – – – 17.64% –
Capital Structure Ratio
Return on Asset % 3% 2.4% 2% 3% 4% 3.14%
Earning Asset to total asset % 95% 94% 93% 97% 96% 93.51% 2016 2015
Total Liabilities / Equity Times 24.35 25.77 22.70 18.38 17.09 15.18
Paid–up Capital / Total Asset % 0.94% 1.10% 1.49% 2.04% 2.24% 3.03%
Equity/ total Asset % 4% 4% 4% 5% 6% 6.18%
4% 1% 3% 1%
4% 3%
Comments:
Profitability Ratios:
Net profit after tax have increased from 1.48 million to 1.87 billion (27% growth) he increase in profitability ratios is due to growth in
our principal line of business the Company has managed to underwrite 24.6 billions of business (new and subsequent) in 2016.
Liquidity Ratio
EFU Life's liquidity position had always been very strong. Minimal decrease in liquidity ratios in due to minimal fall in cash and investment
in TDRs and major investment in Equity and other money market instruments.
Investment / Market Ratio
92%
Investment ratios are gradually increasing over the year due to better performance and earning of the company. Company has announced 92%
120% final dividend and 30% interim dividend (which sum up to 150% total dividend for 2016).
Capital Structure Ratio Policy holders’ liabilities Share capital Policy holders’ liabilities Share capital
EFU Life's paid up capital is 1 Billions which is the largest in the life insurance industry in Pakistan. Total assets of the company has increased Creditors and accruals Reserves Creditors and accruals Reserves
from 91 Billion to 106 Billion making an increase of almost 16.5%.
In addition to this, company has maintained solvency margin of Rs. 1.861 billions along with 3.19 billion in accumulated surplus and reserves.

67
Profit & Loss / Revenue Account Cash Flow
GROSS PREMIUM CASH GENERATED / UTILIZED
2016 2015
Cash Generated 2016 Cash Consumed 2016
10% 7% 12%
18%
18%
9% 22% 1%
11% 22%
29%
43%
43%
77%
78%
First year individual policies First year individual policies
Second year renewal individual policies Second year renewal individual policies Operating activities Investing activities Operating activities Investing activities
Subsequent year renewal individual policies Subsequent year renewal individual policies Financing activities
Single premium individual policies Single premium individual policies
Group premium Group premium
INVESTMENT INCOME
Cash Generated 2015 Cash Consumed 2015
2016 2015
2%
40% 34%
27% 28%
11% 64%
60%
15% 61%
58%
Operating activities Investing activities Operating activities Investing activities

Share capital Policy holders’ liabilities Share capital Policy holders’ liabilities
Financing activities
Reserves Reserves

69
Vertical / Horizontal Analysis
Vertical Analysis 2014 2013 2012 2011

2016 2015
Rupees % Rupees % Rupees % Rupees % Rupees % Rupees %
in ‘000 in ‘000 in ‘000 in ‘000 in ‘000 in ‘000
Balance Sheet
Net Equity 4 193 383 3.94 3 409 743 3.74 2 834 273 4.22 2 533 372 5.16 2 094 258 5.53 1 732 640 6.18
Statutory Fund 97 782 063 91.99 83 836 320 91.86 61 222 367 91.07 43 582 653 88.76 33 743 933 89.05 24 414 209 87.10
Current Liabilities 4 326 085 4.07 4 019 316 4.40 3 171 842 4.71 2 988 234 6.08 2 056 116 5.42 1 883 215 6.72
Total Equity & Liabilities 106 301 531 100 91 265 379 100 67 228 482 100 49 104 259 100 37 894 307 100 28 030 064 100
Total non-current Assets 2 246 304 2.11 1 667 694 1.83 1 083 604 1.61 810 235 1.65 607 105 1.60 450 410 1.61
Investments 88 831 183 83.57 71 941 323 78.83 55 534 580 82.61 39 585 719 80.62 34 728 349 91.65 25 133 535 89.67
Current Assets 15 224 044 14.32 17 656 362 19.35 10 610 298 15.78 8 708 305 17.73 2 558 853 6.75 2 446 119 8.72
106 301 531 100 91 265 379 100 67 228 482 100 49 104 259 100 37 894 307 100 28 030 064 100
Revenue & Profit & Loss Account
Net Income 39 952 080 100 39 188 823 100 28 504 838 100 18 995 186 100 16 786 351 100 12 099 649 100
Claims, Expenditures and Policy-
holders Liabilities ( 36 892 682 ) ( 92.34 ) ( 36 618 738 ) ( 93.44 ) ( 26 522 989 ) ( 93.05 ) ( 17 590 800 ) ( 92.61 ) ( 15 152 760 ) ( 90.27 ) ( 11 017 049 ) ( 91.05 )
Solvency Margin ( 261 302 ) ( 0.65 ) ( 344 715 ) ( 0.88 ) ( 558 476 ) ( 1.96 ) ( 6 072 ) ( 0.03 ) ( 241 123 ) ( 1.44 ) ( 201 785 ) ( 1.67 )
Profit / Loss before Tax 2 798 096 7.00 2 225 370 5.68 1 423 373 4.99 1 398 314 7.36 1 392 468 8.29 880 815 7.28
Income Tax expense ( 925 200 ) ( 2.32 ) ( 749 900 ) ( 1.91 ) ( 472 472 ) ( 1.66 ) ( 469 200 ) ( 2.47 ) ( 478 350 ) (2.85 ) ( 302 450 ) ( 2.50 )
Profit / Loss after Tax 1 872 896 4.69 1 475 470 3.77 950 901 3.33 929 114 4.89 914 118 5.44 578 365 4.78
% increase / (decrease) over preceding year

Horizontal Analysis
2016 2015 2014 2013 2012 2011 2016 2015 2014 2013 2012 2011
Rupees Rupees Rupees Rupees Rupees Rupees
in ‘000 in ‘000 in ‘000 in ‘000 in ‘000 in ‘000
Balance Sheet
Net Equity 4 193 383 3 409 743 2 834 273 2 533 372 2 094 258 1 732 640 22.98 20.30 11.88 20.97 20.87 9.71
Statutory Fund 97 782 063 83 836 320 61 222 367 43 582 653 33 743 933 24 414 209 16.63 36.94 40.47 29.16 38.21 29.41
Current Liabilities 4 326 085 4 019 316 3 171 842 2 988 234 2 056 116 1 883 215 7.63 26.72 6.14 45.33 9.18 9.62
Total Equity & Liabilities 106 301 531 91 265 379 67 228 482 49 104 259 37 894 307 28 030 064 16.48 35.75 36.91 29.58 35.19 26.47
Total non-current Assets 2 246 304 1 667 694 1 083 604 810 235 607 105 450 410 34.70 53.90 33.74 33.46 34.79 7.02
Investments 88 831 183 71 941 323 55 534 580 39 585 719 34 728 349 25 133 535 23.48 29.54 40.29 13.99 38.18 27.50
Current Assets 15 224 044 17 656 362 10 610 298 8 708 305 2 558 853 2 446 119 -13.79 66.41 21.84 240.32 4.61 20.50
Total assets 106 301 531 91 265 379 67 228 482 49 104 259 37 894 307 28 030 064 16.48 35.75 36.91 29.58 35.19 26.47
Revenue & Profit & Loss Account

Net Income 39 952 080 39 188 823 28 504 838 18 995 186 16 786 351 12 099 649 1.95 37.48 50.06 13.16 38.73 28.06
Claims, Expenditures and Policy-
holders Liabilities ( 36 892 682 ) ( 36 618 738 ) ( 26 522 989 ) ( 17 590 800 ) ( 15 152 760 ) ( 11 017 049 ) 0.75 38.06 50.78 16.09 37.54 24.05
Solvency Margin ( 261 302 ) ( 344 715 ) ( 558 476 ) ( 6 072 ) ( 241 123 ) ( 201 785 ) -24.20 -38.28 9097.56 -97.48 19.50 1169.73
Profit / Loss before Tax 2 798 096 2 225 370 1 423 373 1 398 314 1 392 468 880 815 25.74 56.34 1.79 0.42 58.09 59.85
Income Tax expense ( 925 200 ) ( 749 900 ) ( 472 472 ) ( 469 200 ) ( 478 350 ) ( 302 450 ) 23.38 58.72 0.70 -1.91 58.16 61.05
Profit / Loss after Tax 1 872 896 1 475 470 950 901 929 114 914 118 578 365 26.94 55.17 2.34 1.64 58.05 59.23

71
Revenue Application Shariah Advisory Report
to the Board of Directors
(Rupees in '000)
2016 2015
Revenue
Premium 23 861 851 30 351 972
Investment 16 064 695 8 814 395
Other 27 866 22 455 EFU Life Assurance Ltd started its Window Takaful Operations on 6th February 2015. By the grace of Allah, the year
39 954 412 39 188 822 under review was the second successful year of Family Takaful in EFU Life. In this year, the Management, Distribution
Channels and Board of Directors demonstrated their sincere efforts for the promotion of Takaful and underwritten
Cost
good numbers in Takaful.
Acquisition Cost 4 281 125 4 375 494
Employee Benefits 489 332 444 050
Progress of the Year:
Other 638 895 455 376
5 409 352 5 274 920 During the year under review; EFU Life Window Takaful Operations (EFU Life-WTO) has achieved significant successes,
Policy Holders details of which are as follow:
Claims and surrenders 17 764 439 8 941 518
Policy Holders Movements 13 683 878 22 262 111 1. EFU Life-WTO opened number of dedicated Takaful branches across the country in strategic locations.
31 448 317 31 203 629 2. Significant success was achieved in creating BancaTakaful tie-ups during the year. EFU Life-WTO entered into
Government distribution agreements with a number of banks and the number of Partner Banks for BancaTakaful are 10 on
Income & other Taxes 925 200 749 900 which I am thankful to all these Partners Banks for the confidence they have shown on EFU Life-WTO’s
WWF – 46 987 BancaTakaful Products.
925 200 796 887
3. Under the guidance of the undersigned EFU Life-WTO developed different Takaful Products especially in the
Shareholders
BancaTakaful segment focusing on the need of Savings, Child Savings, affordable savings and investment based
Dividend 1 000 000 900 000
plans.
Bonus
1 000 000 900 000 4. All the distribution channels of EFU Life- WTO including BancaTakaful, Individual and Group Family Takaful
Society segments performed very well and underwritten good figures in Takaful.
Donations 5 284 7 277 5. A number of Religious Institutions (Madaris) reviewed the Takaful Products of EFU Life-WTO and with the grace
5 284 7 277 of Allah they issued Shariah Compliance Certificates (Fatawa) in favor of Takaful Products developed by EFU
Retained in Business Life- WTO that can be viewed on the website of the Company.
Reserve unappropriated profit 872 896 575 470
Capital Contribution ( 89 256 ) – Shariah Certification:
Depreciation / Amortization 121 317 85 924
Statutory Reserves - Solvency Margin 261 302 344 715 As Shari’ah Advisor of EFU Life-WTO; I confirm that:
1 166 259 1 006 109 • I have carefully reviewed all the product documents of EFU Life-WTO including Takaful Policies, Brochures,
Revenue 39 954 412 39 188 822 Marketing materials, Agreements of BancaTakaful and Group Takaful etc. and Alhamdulillah I have found them
in accordance with Shari’ah Principles. Further, I confirm that the Takaful Policies issued during the year under
review are in accordance with the guidelines of Shari’ah.
2016 2015
• Before launching any Takaful Product, EFU Life-WTO took guidance and advice of Shari’ah from the undersigned
2% 2% 3% 14%
2%
1% 2% 3% 16% and developed the Takaful Products in accordance with the guidelines provided by me as Shari’ah Advisor.
• Segregation of Window Takaful Operations is the essential part of valid Takaful contracts. I am pleased to state
that 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 insurance
business, as per requirement of Shari’ah.
• Conducting Training and Development is an imperative for understanding the principles of Takaful and its
practical outline. For this purpose EFU Life-WTO arranged classroom training sessions for its Distribution Channels
working in their respective fields and I personally felt that participants gained significantly from these training
sessions. I hope EFU Life will continue this practice in the future.
79% 76%
Cost Government Shareholders Cost Government Shareholders

Policy Holders Society Retained in Business Policy Holders Society Retained in Business

73
Statement of Compliance
with the Shariah Principles
• For the unit linked Takaful products, EFU Life-WTO has established a dedicated Fund named “Takaful Growth The financial arrangements, contracts and transactions, entered into by EFU Life Assurance Limited-Window Takaful
Fund”. All investments under this fund fulfill the requirements of Shari’ah. Moreover, the investments of all Operations ('the Company') for the period from 1 January 2016 to 31 December 2016 are in compliance with the Takaful
other Takaful Funds are separate from the conventional insurance business and they are in line with Shariah. Rules, 2012.
While concluding; I state that the Shari’ah principles have been followed in every aspect of practical implementation Further we confirmed that:
of EFU Life-WTO. I am grateful to the Board of Directors of EFU Life, Management, Appointed Actuary and all relevant
departments who cooperated with me and provided me every possible support to ensure Shari’ah Compliance in – The Company has developed and implemented all the policies and procedures in accordance with the Takaful Rules,
our Takaful practices. 2012 and rulings of the Shariah Advisor along with a comprehensive mechanism to ensure compliance with such
rulings and Takaful rules, 2012 in their overall operations with zero tolerance. Further, the governance arrangements
In the end; I pray to Allah Almighty to grant us success and help us at every step, keep us away from every hindrance including the reporting of events and status to those charged with relevant responsibilities, such as the Audit
and difficulty, and give financial success to EFU Life Window Takaful Operations. Committee / Shari'ah Advisor and the Board of Directors have been implemented;
– The Company has imparted trainings / orientations and ensured availability of all manuals / agreements approved
by Shariah Advisor/ Board of Directors to maintain the adequate level of awareness, capacity and sensitization of
the staff, management;
– All the products and policies have been approved by Shariah Advisor and the financial arrangements including
investments made, policies, contracts and transactions, entered into by Window Takaful Operations are in accordance
with the polices approved by Shariah Advisor.
Muhammad Ibrahim Essa – The assets and liabilities of Window takaful Operation (Participant Takaful Fund and Operator's Sub Fund) are
Shari'ah Advisor segregated from its other assets and liabilities, at all times in accordance with the provisions of the Takaful Rules,
EFU Life Window Takaful Operations 2012.
11th February, 2017
This has been duly confirmed by the Shariah Advisor of the Company.
Profile of Shariah Advisor Dated: February 14, 2017 Managing Director

(Chief Executive Officer)
The Shari'ah Advisor of EFU Family Takaful is Mufti Muhammad Ibrahim Essa, a prominent scholar from Jamiah Darul
Uloom Karachi specializing in Islamic Finance and Takaful. Mufti Ibrahim has completed his Darse Nizami (Masters
in Quran and Sunnah) and Takhassus Fil Fiqh (Specialization in Islamic Jurisprudence) from Jamiah Darul Uloom
Karachi 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 is
also associated as Shariah Advisor with different Islamic Financial Institutions, an Islamic Bank, Mudarabas and an
auditing Firm.

75
Independent Reasonable Assurance Report
to the Board of Directors on the Statement of Management's
Assessment of Compliance with the Shariah Principles
We were engaged by the Board of Directors of EFU Life Assurance Limited (“the Company”) to report on the A system of internal control, because of its nature, may not prevent or detect all instances of non-compliance with
management's assessment of compliance of the Window Takaful Operations (“Takaful Operations”) of the Company, Takaful Rules, 2012, and consequently cannot provide absolute assurance that the objective of compliance with
as set out in the annexed statement prepared by the management for the year ended 31 December 2016, with the Takaful Rules, 2012, will be met. Also, projection of any evaluation of effectiveness to future periods is subject to
Takaful Rules, 2012, in the form of an independent reasonable assurance conclusion about whether the annexed the risk that the controls may become inadequate or fail.
statement presents fairly the status of compliance of the Operations with the Takaful Rules, 2012, in all material
respects. The procedures performed included:
– Evaluate the systems, procedures and practices in place with respect to the Takaful operations against the
Applicable Criteria
Takaful Rules, 2012 and Shariah advisor's guidelines;
The criteria against which the subject matter information (the Statement) is assessed comprise of the provisions of
Takaful Rules 2012. – Evaluating the governance arrangements including the reporting of events and status to those charged with
relevant responsibilities, such as the Audit Committee/ Shari'ah Advisor and the board of directors;
Responsibilities of the Management – Test for a sample of transactions relating to Takaful operations to ensure that these are carried out in accordance
The Board of Directors / management of the Company are responsible for desigining, implementing and maintaining with the laid down procedures and practices including the regulations relating to Takaful operations as laid
internal controls relevant to the preparation of the annexed statement that is free from material misstatement, down in Takaful Rules, 2012;and
whether due to fraud or error. It also includes ensuring the overall compliance of the Takaful Operations with the
Takaful Rules, 2012. – Review the statement of management's assessment of compliance of the Takaful transactions during the year
ended 31 December 2016, with the Takaful Rules, 2012.
The Board of Directors / management of the Company are also responsible for preventing and detecting fraud and
for identifying and ensuring that the Takaful Operations comply with laws and regulations applicable to its activities. Conclusion
They are also responsible for ensuring that the management, where appropriate, those charged with governance,
Our conclusion has been formed on the basis of, and is subject to, the matters outlined in this report. We believe
and personnel involved with the Takaful Operations compliance with the Takaful Rules, 2012 are properly trained,
that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
systems are properly updated and that any changes in reporting encompass all significant business units.
In our opinion, the annexed statement, for the year ended 31 December 2016, presents fairly the status of compliance
Our Independence and Quality Control of the Takaful Operations with the Takaful Rules, 2012, in all material respects.
We have complied with the independence and other ethical requirements of the Code of Ethics for Chartered
Accountants issued by the Institute of Chartered Accountants of Pakistan, which is founded on fundamental principles
of 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 and
Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements” and accordingly
maintains a comprehensive system of quality control including documented policies and procedures regarding Date: 14 February 2017 KPMG Taseer Hadi & Co.
compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Karachi Chartered Accountants
Our Responsibilities
Our responsibility is to examine the annexed statement and to report thereon in the form of an independent reasonable
assurance conclusion based on the evidence obtained. We conducted our engagement in accordance with International
Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other Than Audits or Reviews of Historical
Financial Information issued by the International Auditing and Assurance Standards Board. That standard requires
that we plan and perform our procedures to obtain reasonable assurance about whether the annexed statement
presents 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-compliances
with the Takaful Rules, 2012, whether due to fraud or error. In making those risk assessments, we have considered
internal control relevant to the Takaful Operations compliance with the Takaful Rules, 2012, in order to design
assurance procedures that are appropriate in the circumstances, but not for the purposes of expressing a conclusion
as to the effectiveness of the Company's internal control over the Takaful Operations' compliance with the Takaful
Rules, 2012. Reasonable assurance is less than absolute assurance.

77
Statement of Compliance with the Code of Corporate Governance
For Insurers, 2016 & Code of Corporate Governance, 2012
For the year ended 31 December 2016
This statement is being presented in compliance with the Code of Corporate Governance for Insurers, 2016 (the 11. The Board has put in place a mechanism for an annual evaluation of the board's own performance as required
Code) for the purpose of establishing a framework of good governance, whereby an insurer is managed in compliance under the CCG, 2012.
with the best practices of corporate governance and the Code of Corporate Governance 2012 (CCG 2012) as
contained in Regulation No.5.19.24 of the Rule Book of the Pakistan Stock Exchange. 12. There was no change of Chief Financial Officer, Company Secretary and Head of Internal Audit during the year.
The Company, being an insurer, has applied the principles contained in the Code and CCG, 2012 in the following 13. The Directors' Report for this year has been prepared in compliance with the requirements of the Code and the
manner: CCG, 2012 and fully describes the salient matters required to be disclosed.
1. The Company encourages representation of independent and non-executive Directors and directors representing 14. The financial statements of the Company were duly endorsed by Chief Executive Officer and Chief Financial
minority interests on its Board of Directors. At present the Board includes: Officer before approval of the Board.
15. The Directors, Chief Executive Officer and other executives do not hold any interest in the shares of the Company
Category Name other than that disclosed in the pattern of shareholding.
Independent Director Mr. Kamal Afsar 16. The Company has complied with all the corporate and financial reporting requirements of the Code and CCG,
Executive Director Mr. Taher G. Sachak 2012.
Non Executive Directors Mr. Rafique R. Bhimjee
17. The Board has formed the following Management Committees under the Code:
Non Executive Directors Mr. Saifuddin N. Zoomkawala
Non Executive Directors Mr. Muneer R. Bhimjee Underwriting Committee:
Non Executive Directors Mr. Hasanali Abdullah Name of the Member Category
Non Executive Directors Mr. Heinz Walter Dolberg
Non Executive Directors Mr. S. Salman Rashid Taher G. Sachak Chairman (Chief Executive Officer)
Non Executive Directors Mr. Mahmood Lotia Dr Tajuddin A, Manji Member
Zain Ibrahim Member
The independent director meet the criteria of independence under the Code and the CCG, 2012. Hasan Sheikh Member
2. The directors have confirmed that none of them is serving as a director on more than seven (7) listed companies, Dr Asadul Hadi Siddiqui Member
including this company. Claim Settlement Committee:
3. All the resident directors of the company have confirmed that they are registered as taxpayers and none of them Name of the Member Category
has defaulted in payment of any loan to a banking company, a DFI or an NBFI. None of the directors or their
spouses is engaged in business of stock brokerage. Taher G. Sachak Chairman (Chief Executive Officer)
Arshad Iqbal Member
4. There were no casual vacancy occurred on the Board during the year. Dr Ammara Moazzum Member
5. The Company has prepared a “Code of Conduct” and has ensured that appropriate steps have been taken to Sajjad Hussain Member
disseminate it throughout the company along with its supporting policies and procedures. Reinsurance Committee:
6. The Board has developed a vision / mission statement, overall corporate strategy and significant policies of the Name of the Member Category
Company. A complete record of particulars of significant policies along with the dates on which they were
presented on the Board for approval or amendment has been maintained. Taher G. Sachak Chairman (Chief Executive Officer)
Mohammad Ali Ahmed Member
7. All powers of the Board have been duly exercised and decisions on material transactions including appointment
and determination of remuneration and terms and conditions of employment of Chief Executive Officer, other Zain Ibrahim Member
executive and non-executive directors and the key officers, have been taken by the Board except the decision Raza Hasan Member
on terms of and the circumstances in which a law suit may be compromised and claim / right in favor of the Ali Qureshi Member
company may be waived, released, extinguished or relinquished, which shall be made within timeline provided Risk Management & Compliance Committee:
in Code.
Name of the Member Category
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 seven Taher G. Sachak Chairman (Chief Executive Officer)
days before the meetings. The minutes of the meetings were appropriately recorded and circulated. Mohammed Ali Ahmed Member
S. Shahid Abbas Member
9. The Board has established a system of sound internal control, which is effectively implemented at all levels within
Zain Ibrahim Member
the Company. The Company has adopted and complied with all the necessary aspects of internal controls given
in the Code. Ali Qureshi Member
Abbas Hussain Member
10. The Board arranged an Orientation course for all its directors in the form of booklet which was submitted to
the Board of Director during the year to apprise them of their duties and responsibilities and also about changes
in Code of Corporate Governance.

79
18. The Board has formed the following Board Committees under the Code / CCG 2012: 23. The statutory auditors of the Company have been appointed from the panel of auditors approved by the
Commission in terms of section 48 of the Insurance Ordinance, 2000 (Ordinance No. XXXIX of 2000). The
Ethics, Human Resource & Remuneration Committee:
statutory auditors of the Company have confirmed that they have been given a satisfactory rating under the
Name of the Member Category quality control review programme of the Institute of Chartered Accountants of Pakistan, that they or any of the
partners of the firm, their spouses and minor children do not hold shares of the insurer and that the firm and
Rafique R. Bhimjee Chairman (Non-Executive Director) all its partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics
Saifuddin N. Zoomkawala Member (Non-Executive Director) as adopted by Institute of Chartered Accountants of Pakistan.
Taher G. Sachak Member (Chief Executive Officer)
24. The statutory auditors or the persons associated with them have not been appointed to provide other services
Investment Committee: except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC
Name of the Member Category guidelines in this regard.
Rafique R. Bhimjee Member (Non-Executive Director) 25. The Appointed Actuary of the Company has confirmed that he/she or his/her spouse and minor children do not
Saifuddin N. Zookawala Member (Non-Executive Director) hold shares of the Company.
Taher G. Sachak Chairman (Chief Executive Officer) 26. The Board ensures that the Appointed Actuary complies with the requirement set out for him/her in the Code.
Hasanali Abdullah Member (Non-Executive Director)
Omer Morshed Member (Appointed Actuary) 27. The Board ensures that the investment policy of the Company has been drawn up in accordance with the
S. Shahid Abbas Member (CFO & Corporate Secretary) provisions of the Code.
Mohammed Ali Ahmed Member
28. The Board ensures that the risk management system of the Company is in place as per the requirement of the
S. Muhammad Owais Member
Code.
19. The Board has formed an Audit Committee. It comprises of four members, of whom one is independent director
29. The Company already has risk management function, the task of the new Risk management and compliance
and three are non-executive Directors. The chairman of the committee is a non-executive director. The composition
function as covered under the Code was approved on 14 February 2017.
of the Audit Committee is as follows:
30. The Board ensures that as part of the risk management system, the Company gets rated from JCR-VIS which is
Audit Committee:
being used by its risk management function/department and the respective Committee as a risk monitoring tool.
Name of the Member Category The rating assigned by the said rating agency on 17 March 2016 is AA+ with Stable outlook. which carries out
its tasks as covered under the Code.
Hasanali Abdullah Chairman (Non-Executive Director)
Saifuddin N. Zoomkawala Member (Non-Executive Director) 31. The Board has set up a grievance department / function, which fully complies with the requirements of the Code.
Muneer R. Bhimjee Member (Non-Executive Director)
32. The Company has not obtained any exemption from the Securitites and Exchange Commission of Pakistan in
Kamal Afsar Member (Independent Director)
respect of the requirements of the Code.
20. The meetings of the Committees, except Ethics, Human Resource and Remuneration Committee, were held at 33. The Board has arranged director training programs for one of its director during the year. All other directors are
least once every quarter prior to approval of interim and final results of the insurer and as required by the Code either already certified or exempt from the said requirement under Code of Corporate Governance contained
/ CCG, 2012. The terms of reference of the committee have been formed and advised to the committee for in Listing Regulations.
compliance. No meeting of Risk Management and Compliance Committee was conducted as it was formed on
14 February 2017. 34. The 'closed period', prior to the announcement of interim / final results, and business decisions, which may
materially affect the market price of company's securities, was determined and intimated to directors, employees
21. The Board has set up an effective internal audit function. and the Pakistan stock exchange as required by the CCG 2012.
22. The Chief Executive Officer, Chief Financial Officer, Compliance Officer and the Head of Internal Audit possess 35. Material / price sensitive information has been disseminated among all market participants at once through the
such qualification and experience as is required under the Code. The Appointed Actuary of the Company also Pakistan stock exchange as required by the CCG 2012.
meets 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 36. The Company has complied with the requirements relating to maintenance of register of persons having access
direct relevance to their respective functions, as required under section 12 of the Insurance Ordinance, 2000 to inside information by designated senior management officer in a timely manner and maintained proper record
(Ordinance No. XXXIX of 2000): including basis for inclusion or exclusion of names of persons from the said list.
Name of the Person Designation 37. We confirm that all other material principles contained in the Code and the CCG 2012 have been complied with.
Taher G. Sachak Chief Executive Officer

S. Shahid Abbas Chief Financial Officer
Abbas Husain Compliance Officer
Mohammed Ali Ahmed Actuary
S. Shahid Abbas Company Secretary
Mohammad Abbas Head of Internal Audit
Zain Ibrahim Head of Underwriting HASANALI ABDULLAH SAIFUDDIN N. ZOOMKAWALA TAHER G. SACHAK RAFIQUE R. BHIMJEE
Dr Ammara Moazzum Head of Claims Director Director Managing Director & Chairman
Ali Qureshi Head of Reinsurance Chief Executive
Ali Qureshi Head of Risk Management
Arshad Iqbal Head of Grievance Dept.

81
Review Report to the Members on Statement
of Compliance with the Best Practices
of the Code of Corporate Governance
We have reviewed the enclosed Statement of Compliance with the best practices contained in the Code of Corporate Independent Auditors' Report to the Members
Governance for Insurers, 2016 and Code of Corporate Governance, 2012 as mentioned in the Regulation No. 5.19.24
of the Rule Book of Pakistan Stock Exchange (“PSX”) (combined called 'the Code') as prepared by the Board of We have audited the annexed financial statements comprising of:
Directors (“the Board”) of EFU Life Assurance Limited (“the Company”) for the year ended 31 December 2016 to i. balance sheet;
comply with the requirements of Listing Regulations of PSX where the Company is listed.
ii. profit and loss account;
The responsibility for compliance with the Code is that of the Board of Directors of the Company. Our responsibility iii. statement of changes in equity;
is to review, to the extent where such compliance can be objectively verified, whether the Statement of Compliance iv. cash flow statement;
reflects the status of the Company's compliance with the provisions of the Code and report if it does not and to
v. revenue account;
highlight any non-compliance with the requirements of the Code. A review is limited primarily to inquiries of the
Company's personnel and review of various documents prepared by the Company to comply with the Code. vi. statement of premiums;
vii. statement of claims;
As a part of our audit of the financial statements we are required to obtain an understanding of the accounting and
viii. statement of expenses; and
internal control systems sufficient to plan the audit and develop an effective audit approach. We are not required
to consider whether the Board of Director's statement on internal control covers all risks and controls, or to form ix. statement of investment income
an opinion on the effectiveness of such internal controls, the Company's corporate governance procedures and risks.
of EFU Life Assurance Limited (“the Company”) as at 31 December 2016 together with the notes forming part thereof,
The Code requires the Company to place before the Audit Committee, and upon recommendation of the Audit for the year then ended.
Committee, place before the Board of Directors for their review and approval its related party transactions distinguishing
It is the responsibility of the Company's Board of Directors to establish and maintain a system of internal control, and
between transactions carried out on terms equivalent to those that prevail in arm's length transactions and transactions
prepare and present the financial statements in conformity with the approved accounting standards as applicable in
which are not executed at arm's length price and recording proper justification for using such alternate pricing
Pakistan and the requirements of the Insurance Ordinance, 2000 (XXXIX of 2000) and the Companies Ordinance, 1984
mechanism. We are only required and have ensured compliance of this requirement to the extent of approval of
(XLVII of 1984). Our responsibility is to express an opinion on these statements based on our audit.
related party transactions by the Board of Directors upon recommendation of the Audit Committee. We have not
carried out any procedures to determine whether the related party transactions were undertaken at arm's length We conducted our audit in accordance with the auditing standards as applicable in Pakistan. Those standards require that
price or not. we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance
financial statements. An audit also includes assessing the accounting policies used and significant estimates made by
does not appropriately reflect the Company's compliance, in all material respects, with the best practices contained
management, as well as, evaluating the overall financial statements presentation. We believe that our audit provides a
in the Code as applicable to the Company for the year ended 31 December 2016.
reasonable basis for our opinion.
In our opinion:
(a) proper books of account have been kept by the Company as required by the Insurance Ordinance, 2000 and
Companies Ordinance, 1984;
(b) the financial statements together with the notes thereon have been drawn up in conformity with the Insurance
KPMG Taseer Hadi & Co. Ordinance, 2000 and the Companies Ordinance, 1984, and accurately reflect the books and records of the Company
Chartered Accountants and are further in accordance with accounting policies consistently applied;
(c) the financial statements together with notes thereon present fairly, in all material respects, the state of the Company's
Karachi February 14, 2016 affairs as at 31 December 2016 and of the profit, its cash flows and changes in equity for the year then ended in
accordance with approved accounting standards as applicable in Pakistan and give the information required to be
disclosed by the Insurance Ordinance, 2000 and the Companies Ordinance, 1984;
(d) the apportionment of assets, liabilities, revenue and expenses between two or more funds has been performed in
accordance with the advice of the appointed actuary; and
(e) Zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the Company
and deposited in the Central Zakat Fund established under Section 7 of that Ordinance.
KPMG Taseer Hadi & Co.

Chartered Accountants
Muhammad Taufiq

83
Balance Sheet
As At 31 December 2016
(Rupees ‘000) (Rupees ‘000)
Statutory Funds Statutory Funds

Investment Pension Accident Individual Group Investment Pension Accident Individual Group
Note Shareholders’ Linked Conventional Business & Health Family Family Aggregate Aggregate Note Shareholders’ Linked Conventional Business & Health Family Family Aggregate Aggregate
Fund Business Business (Unit Linked) Business Takaful Takaful 2016 2015 Fund Business Business (Unit Linked) Business Takaful Takaful 2016 2015
Share capital and reserves Cash and bank deposits 15

Authorised share capital Policy stamps in hand – 4 322 38 – – 19 – 4 379 8 545
[ 150 000 000 ordinary shares Current and other accounts 91 330 2 366 777 115 352 2 859 51 397 133 59 608 3 033 110 3 538 042
(2015: 150 000 000) of Rs. 10 each] 1 500 000 1 500 000 1 500 000 Deposits maturing within 12 months 250 000 8 574 000 25 100 1 000 – 494 000 14 000 9 358 100 10 860 000
Issued, subscribed and paid-up 341 330 10 945 099 140 490 3 859 51 891 152 73 608 12 395 589 14 406 587
share capital 8 1 000 000 1 000 000 1 000 000 Loans 16
Accumulated surplus 1 543 383 1 543 383 1 459 743 To employees - secured 80 918 – – – – – – 80 918 85 094
General reserves 1 650 000 1 650 000 950 000 To employees and agents - unsecured 10 994 – – – – – – 10 994 15 093
91 912 – – – – – – 91 912 100 187
Net shareholders' equity 4 193 383 4 193 383 3 409 743
Investments 17
Balance of statutory fund
[including policyholders' Government securities 1 574 647 45 510 283 1 618 072 15 733 5 497 143 336 2 500 48 870 068 49 251 553
liabilities Rs. 95 869 million Other fixed income securities – 1 575 511 – – – – – 1 575 511 1 434 650
(2015: Rs. 82 185 million) Listed equities and mutual funds 995 554 36 815 902 105 729 7 284 375 460 252 – 38 385 096 21 254 612
Unlisted equities 508 – – – – – – 508 508
Statutory fund 10 – 95 349 835 1 028 151 25 000 2 270 1 345 578 23 539 97 774 373 83 829 193
2 570 709 83 901 696 1 723 801 23 017 5 872 603 588 2 500 88 831 183 71 941 323
Cede Money - Waqf – – – – – 2 000 – 2 000 2 000
Current assets - others
Shareholder's Fund unit holding in PIF – – – – – 5 690 – 5 690 5 127
Premium / contribution due but unpaid – – 90 317 – – – 1 712 92 029 70 254
– 95 349 835 1 028 151 25 000 2 270 1 353 268 23 539 97 782 063 83 836 320 Amounts due from reinsurer / retakaful – 17 008 58 495 – 254 – – 75 757 147 849
Deferred tax liability 11 131 000 – – – – – – 131 000 15 800 Taxation - provision less payments 58 550 – – – – – – 58 550 56 952
Prepayments – 27 643 3 185 – 2 5 450 – 36 280 26 071
Creditors and accruals Sundry receivables 166 049 25 012 2 750 2 2 14 656 400 208 871 136 325
Outstanding claims 12 – 834 990 847 023 – 1 345 6 028 3 331 1 692 717 1 458 110 Investment income accrued 18 8 766 1 766 822 4 653 104 – 2 280 8 1 782 633 1 964 499
Shareholders' Fund unit holding in PIF – – – – – 5 690 – 5 690 5 127
Premium / contribution Advances and deposits 20 088 124 566 6 032 5 7 453 449 151 600 86 978
received in advance – 475 245 77 959 15 22 20 538 2 027 575 806 570 463
Inter - fund receivable 331 893 – – – – 85 152 – 417 045 655 533
Amounts due to reinsurers / retakaful – 95 705 25 611 252 – 14 696 11 759 148 023 187 617 585 346 1 961 051 165 432 111 265 113 681 2 569 2 828 455 3 149 588
Amounts due to agents – 465 404 17 161 – 29 73 631 239 556 464 524 163 Fixed assets 19
Accrued expenses 3 787 367 377 27 922 5 19 6 209 6 209 411 528 322 041 Tangible & Intangible assets
Leased hold land – 126 505 – – – – – 126 505 126 505
Unclaimed dividend 22 047 – – – – – – 22 047 16 870
Building – 1 254 115 – – – – – 1 254 115 –
Other creditors and accruals 13 12 852 193 563 5 889 43 57 134 051 25 000 371 455 268 719 Furniture fixtures office equipment and vehicles 752 127 – – – – – – 752 127 422 522
Inter - fund payable – 406 347 7 1 672 2 446 – 6 573 417 045 655 533 Capital work in progress – – – – – – – – 1 095 312
Intangible (Computer software) 21 645 – – – – – – 21 645 23 355
Total liabilities 38 686 2 838 631 1 001 572 1 987 3 918 255 153 55 138 4 195 085 4 003 516
773 772 1 380 620 – – – – – 2 154 392 1 667 694
Total equity and liabilities 4 363 069 98 188 466 2 029 723 26 987 6 188 1 608 421 78 677 106 301 531 91 265 379 Total assets 4 363 069 98 188 466 2 029 723 26 987 6 188 1 608 421 78 677 106 301 531 91 265 379
Contingencies and commitments 14

The annexed notes 1 to 35 form an integral part of these financial statements.
HASANALI ABDULLAH SAIFUDDIN N. ZOOMKAWALA TAHER G. SACHAK RAFIQUE R. BHIMJEE HASANALI ABDULLAH SAIFUDDIN N. ZOOMKAWALA TAHER G. SACHAK RAFIQUE R. BHIMJEE
Director Director Managing Director & Chairman Director Director Managing Director & Chairman
Chief Executive Chief Executive

85
Profit and Loss Account Statement of Changes in Equity
For The Year Ended 31 December 2016 For The Year Ended 31 December 2016
Share General Capital Accumulated

Capital Reserve Contribution Surplus Total
Note 2016 2015
Investment income not attributable to statutory funds
Return on government securities 105 461 103 846 Balance as at 1 January 2015 1 000 000 750 500 – 1 083 773 2 834 273
Return on other fixed income securities and deposits 26 211 18 419 Total Comprehensive Income for the year
Dividend income 49 209 48 823 Profit for the year ended 31 December 2015 – – – 1 475 470 1 475 470
180 881 171 088
Transaction with owners of the company
Profit on sale of investments 33 382 –
Transfer to General Reserve – 199 500 – ( 199 500 ) –
Reversal of / (provision for) impairment in the
value of available for sale investments 196 434 ( 26 640 ) Dividend for the year ended 31 December 2014
at the rate of Rs. 6.00 per share – – – ( 600 000 ) ( 600 000 )
Net investment income 410 697 144 448
Interim dividend for the quarter ended 31 March 2015
Other revenue 22 27 866 22 455
Interim dividend for the quarter ended 30 June 2015
438 563 166 903 at the rate of Rs. 1.00 per share – – – ( 100 000 ) ( 100 000 )
Expenses not attributable to statutory funds 23 33 455 ( 63 609 )
Interim dividend for the quarter ended 30 September 2015
472 018 103 294 at the rate of Rs. 1.00 per share – – – ( 100 000 ) ( 100 000 )
Surplus transferred from statutory funds 2 326 078 2 122 076 Balance as at 31 December 2015 1 000 000 950 000 – 1 459 743 3 409 743
Profit before tax 2 798 096 2 225 370 Total Comprehensive Income for the year
Taxation 24 ( 925 200 ) ( 749 900 )
Profit for the year ended 31 December 2016 – – – 1 872 896 1 872 896
Profit after tax 1 872 896 1 475 470
Transaction with owners of the company
Transfer to General Reserve – 700 000 – ( 700 000 ) –

Earnings per share - basic and diluted (Rupees) 18.73 14.75
Dividend for the year ended 31 December 2015
Interim dividend for the quarter ended 31 March 2016
Interim dividend for the quarter ended 30 June 2016

Interim dividend for the quarter ended 30 September 2016

Capital Contribution – – ( 89 256 ) – ( 89 256 )
Balance as at 31 December 2016 1 000 000 1 650 000 ( 89 256 ) 1 632 639 4 193 383
Karachi February 14, 2017 Karachi February 14, 2017

87
Statement of Cash Flows Revenue Account
Statutory Funds
Investment Pension Accident Individual Group Statutory Funds
Shareholders’ Linked Conventional Business & Health Family Family Aggregate Aggregate Investment Pension Accident Individual Group
Fund Business Business (Unit Linked) Business Takaful Takaful 2016 2015
Note Linked Conventional Business & Health Family Family Aggregate Aggregate
Operating cash flows Business Business (Unit Linked) Business Takaful Takaful 2016 2015
a ) Underwriting activities
Income
Premium / contribution received – 20 397 556 2 361 422 947 1 394 1 846 576 52 125 24 660 020 30 989 191
Reinsurance premium / retakaful Premium / contribution less reinsurance / retakaful 20 188 466 1 824 189 968 990 1 810 349 36 889 23 861 851 30 351 972
contribution paid – ( 3 447 ) ( 167 396 ) 19 – 1 – ( 170 823 ) ( 149 070 )
Claims paid – ( 690 364 ) ( 1 610 503 ) – ( 1 924 ) ( 2 912 ) ( 18 043 ) ( 2 323 746 ) ( 2 144 302 ) Net investment income / wakala income 15 294 768 119 635 4 114 702 220 613 14 166 15 653 998 8 669 948
Surrenders paid – ( 15 706 820 ) – ( 643 ) – ( 86 045 ) – ( 15 793 508 ) ( 6 911 087 )
Commission paid – ( 2 516 969 ) ( 254 501 ) ( 43 ) ( 273 ) ( 333 382 ) ( 5 744 ) ( 3 110 912 ) ( 3 247 239 ) Total net income 35 483 234 1 943 824 5 082 1 692 2 030 962 51 055 39 515 849 39 021 920
Net cash generated from / (used in) Claims and Expenditure
underwriting activities – 1 479 956 329 022 280 ( 803 ) 1 424 238 28 338 3 261 031 18 537 493
b ) Other operating activities Claims net of reinsurance recoveries 16 334 777 1 325 148 624 976 89 816 13 098 17 764 439 8 941 518
Income tax paid ( 811 598 ) – – – – – – ( 811 598 ) ( 648 584 ) Management expenses 4 362 953 423 273 67 376 758 479 24 260 5 569 408 5 351 500
General management expenses paid 34 362 ( 1 698 191 ) ( 155 068 ) ( 27 ) ( 133 ) ( 374 762 ) ( 11 975 ) ( 2 205 794 ) ( 2 055 603 )
Other operating payments ( 140 228 ) 86 366 ( 1 512 ) 43 10 133 071 24 986 102 736 ( 330 867 ) Total claims and expenditure 20 697 730 1 748 421 691 1 352 848 295 37 358 23 333 847 14 293 018
Other operating receipts 328 663 ( 258 515 ) ( 49 972 ) 5 ( 32 566 ) ( 806 ) 13 191 – 481 363
Loans advanced ( 57 370 ) – – – – – – ( 57 370 ) ( 99 453 )
Loans repayments received 65 645 – – – – – – 65 645 70 566 Excess of income over claims and expenditure 14 785 504 195 403 4 391 340 1 182 667 13 697 16 182 002 24 728 902
Other payments on operating assets ( 98 228 ) ( 37 613 ) ( 146 ) (7) 65 ( 5 422 ) ( 849 ) ( 142 200 ) ( 94 309 )
Net cash (used in) / generated from other Add : policyholders' liabilities at beginning
operating activities ( 678 754 ) ( 1 907 953 ) ( 206 698 ) 14 ( 32 624 ) ( 247 919 ) 25 353 ( 3 048 581 ) ( 2 676 887 ) of the year 81 600 231 495 921 21 258 2 691 62 328 2 942 82 185 371 59 923 260
Total cash (used in) / generated from Less : policyholders' liabilities at end
operating activities ( 678 754 ) ( 427 997 ) 122 324 294 ( 33 427 ) 1 176 319 53 691 212 450 15 860 606
of the year 9.2 93 863 055 664 081 24 608 1 825 1 307 669 8 011 95 869 249 82 185 371
Investment activities
Profit / return received 186 909 5 322 262 125 549 1 727 844 131 018 14 160 5 782 469 5 567 597 ( 12 262 824 ) ( 168 160 ) ( 3 350 ) 866 ( 1 245 341 ) ( 5 069 ) ( 13 683 878 )( 22 262 111 )
Dividends received 49 209 1 397 806 3 084 333 – 8 254 – 1 458 686 1 011 657 Surplus / (deficit) before tax 2 522 680 27 243 1 041 1 206 ( 62 674 ) 8 628 2 498 124 2 466 791
Payments for investments ( 1 851 649 ) ( 81 935 509 ) ( 1 940 213 ) ( 25 595 ) ( 10 919 ) ( 1 757 465 ) – ( 87 521 350 ) ( 28 200 544 )
Proceeds from disposal of investments 1 436 018 75 968 992 974 299 21 390 10 472 1 238 850 – 79 650 021 14 058 448
Fixed capital expenditure ( 444 714 ) ( 174 678 ) – – – – – ( 619 392 ) ( 684 603 ) Movement in policyholders' liabilities 12 262 824 168 160 3 350 ( 866 ) 1 245 341 5 069 13 683 878 22 262 111
Proceeds from disposal of fixed assets 26 118 – – – – – – 26 118 27 057
Total cash (used in) / generated from Transfer of (surplus) / deficit to shareholders' fund ( 2 340 660 ) 16 868 ( 990 ) ( 1 296 ) – – ( 2 326 078 ) ( 2 122 076 )
investing activities ( 598 109 ) 578 873 ( 837 281 ) ( 2 145 ) 397 ( 379 343 ) 14 160 ( 1 223 448 ) ( 8 220 388 )
Financing activities Capital contribution – – – – 85 449 3 807 89 256 –
Surplus appropriated to shareholders' fund 2 326 078 ( 2 340 660 ) 16 868 ( 990 ) ( 1 296 ) – – – –
Cede Money – – – – – – – – – Balance of statutory funds at
Dividends paid ( 1 000 000 ) – – – – – – ( 1 000 000 ) ( 900 000 ) beginning of the year 82 904 991 815 880 21 599 3 226 77 462 6 035 83 829 193 61 222 367
Total cash generated from / (used in)
financing activities 1 326 078 ( 2 340 660 ) 16 868 ( 990 ) ( 1 296 ) – – ( 1 000 000 ) ( 900 000 )
Balance of statutory funds at end of the year 95 349 835 1 028 151 25 000 2 270 1 345 578 23 539 97 774 373 83 829 193
Net cash generated from / (used in) all activities 49 215 ( 2 189 784 ) ( 698 089 ) ( 2 841 ) ( 34 326 ) 796 976 67 851 ( 2 010 998 ) 6 740 218
Cash and cash equivalents at beginning of the year 292 115 13 134 883 838 579 6 700 34 377 94 176 5 757 14 406 587 7 666 369 Represented by:
Cash and cash equivalents at end of the year 341 330 10 945 099 140 490 3 859 51 891 152 73 608 12 395 589 14 406 587
Reconciliation to profit and loss account Policyholders' liabilities 9.2 93 863 055 664 081 24 608 1 825 1 307 669 8 011 95 869 249 82 185 371
Operating cash flows 212 450 15 860 606
Depreciation ( 110 767 ) ( 78 870 ) Retained earnings on other than
Amortization ( 10 550 ) ( 7 054 ) participating business 1 486 780 364 070 392 445 37 909 15 528 1 905 124 1 643 822
Profit on disposal of fixed assets 14 741 12 468
Other revenue 13 125 9 987 Balance of statutory funds 10 95 349 835 1 028 151 25 000 2 270 1 345 578 23 539 97 774 373 83 829 193
Investment revenue 7 046 164 6 533 792
Appreciation in market value of investments 7 380 998 538 210
(Provision for) / reversal of impairment in the value of available for sale equity investments 200 407 ( 22 201 )
(Provision for) / reversal of impairment in the value of available for sale fixed income securities – ( 6 559 )
Capital contribution from shareholders fund 89 256 – The annexed notes 1 to 35 form an integral part of these financial statements.
Profit on sale of investments 1 437 126 1 755 197
(Decrease) / Increase in assets other than cash ( 147 542 ) 341 321
Increase in liabilities ( 14 252 512 ) ( 23 461 427 )
Profit after taxation 1 872 896 1 475 470

89
Statement of Premiums Statement of Claims

Linked Conventional Business & Health Family Family Aggregate Aggregate Linked Conventional Business & Health Family Family Aggregate Aggregate
Business Business (Unit Linked) Business Takaful Takaful 2016 2015 Business Business (Unit Linked) Business Takaful Takaful 2016 2015
Gross premium / contribution Gross claims

Regular premium / contribution individual policies* Claims under individual policies
First year 3 674 394 2 410 – 242 665 979 – 4 343 025 3 732 089 by death 759 772 2 373 – 433 8 940 – 771 518 584 915
Second year renewal 2 684 309 455 – 39 121 946 – 2 806 749 2 733 076 by insured event other than death 14 817 – – 952 – – 15 769 20 828
Subsequent year renewal 10 688 383 2 832 997 1 172 5 298 – 10 689 682 9 122 589 by maturity 627 227 – – – – – 627 227 528 925
by surrender 15 078 077 – 643 – 86 045 – 15 164 765 6 925 241
Single premium / contribution individual policies 3 349 856 – – – 1 041 515 – 4 391 371 13 316 717 Total gross individual policy claims 16 479 893 2 373 643 1 385 94 985 – 16 579 279 8 059 909
Group policies with cash values 35 129 – – – – – 35 129 33 384 Claims under group policies
by death 166 1 555 229 – – – 18 140 1 573 535 1 090 571
Group policies without cash values – 2 349 795 – – – 51 701 2 401 496 2 095 975
by insured event other than death – 68 749 – – – 402 69 151 72 572
Total gross premium / contribution 20 432 071 2 355 492 997 1 453 1 834 738 51 701 24 676 452 31 033 830 by surrender 2 410 – – – – – 2 410 1 092
experience refund – 127 486 – – – – 127 486 171 911
Less: Reinsurance premium / retakaful Total gross group claims 2 576 1 751 464 – – – 18 542 1 772 582 1 336 146
contribution ceded
On individual life first year business 38 693 452 – 20 20 439 59 604 50 994 Total gross claims 16 482 469 1 753 837 643 1 385 94 985 18 542 18 351 861 9 396 055
On individual life second year business 28 125 130 – 8 3 950 – 32 213 28 286
Less: Reinsurance / retakaful recoveries
On individual life renewal business 176 787 800 29 435 – – 178 051 175 400
On individual life first year business 62 033 – – – 5 169 – 67 202 31 992
On group policies – 529 921 – – – 14 812 544 733 427 178
On individual life second year business – – – – – – – 20 209
Total reinsurance premium / retakaful On individual life subsequent

renewal business 49 562 150 – 409 – – 50 121 74 979
contribution ceded 243 605 531 303 29 463 24 389 14 812 814 601 681 858
On group claims – 367 906 – – – 5 444 373 350 235 987
Net premium / contribution 20 188 466 1 824 189 968 990 1 810 349 36 889 23 861 851 30 351 972 On experience refund of premium 36 097 60 633 19 – – – 96 749 91 370
Total reinsurance / retakaful recoveries 147 692 428 689 19 409 5 169 5 444 587 422 454 537
* Individual policies are those underwritten on an individual basis, and includes joint life policies underwritten as such. Net claims 16 334 777 1 325 148 624 976 89 816 13 098 17 764 439 8 941 518
The annexed notes 1 to 35 form an integral part of these financial statements. The annexed notes 1 to 35 form an integral part of these financial statements.

91
Statement of Expenses Statement of Investment Income

Linked Conventional Business & Health Family Family Aggregate Aggregate Linked Conventional Business & Health Family Family Aggregate Aggregate
Note Business Business (Unit Linked) Business Takaful Takaful 2016 2015 Business Business (Unit Linked) Business Takaful Takaful 2016 2015
Acquisition costs Investment income
Remuneration to insurance Income from trading investments
intermediaries on individual policies: Gain / loss on trading 18 287 – – – – – 18 287 213 708
– commission on first year premium /
contribution 1 573 041 705 – 99 288 100 – 1 861 945 1 619 768 Dividend Income on trading 29 798 – – – – – 29 798 37 453
– commission on second year 48 085 – – – – – 48 085 251 161
premium / contribution 235 760 52 – 15 12 797 – 248 624 244 503
Income from non-trading investments
– commission on subsequent On government securities 4 395 002 88 364 1 130 450 5 205 103 4 490 254 4 795 200
renewal premium / contribution 240 832 70 25 81 1 187 – 242 195 242 065
– commission on single On other fixed income securities
premium / contribution 106 028 – – – 34 077 – 140 105 519 241 and deposits 821 479 7 460 238 134 22 334 161 851 806 609 362
– override commission 349 694 211 9 47 40 802 – 390 763 444 734 Dividend income 1 368 008 3 084 333 – 8 254 – 1 379 679 925 381
– other benefits to insurance Amortization of (premium) / discount ( 384 069 ) 1 785 46 20 ( 312 ) – ( 382 530 ) ( 210 018 )
intermediaries 545 482 108 19 27 110 710 – 656 346 570 028
6 200 420 100 693 1 747 604 35 481 264 6 339 209 6 119 925
3 050 837 1 146 53 269 487 673 – 3 539 978 3 640 339
Remuneration to insurance Gain on sale of investments 1 364 221 15 067 181 – 5 988 – 1 385 457 1 541 489
intermediaries on group policies:
– commission 2 555 251 075 – – – 5 951 259 581 291 927 Gain / (loss) on revaluation of
– other benefits to insurance investments
intermediaries 757 50 621 – – – 1 420 52 798 46 722
Government securities ( 282 198 ) – ( 124 ) – – – ( 282 322 ) 783 256
3 312 301 696 – – – 7 371 312 379 338 649
Branch overheads 20 311 373 4 150 14 20 38 757 – 354 314 324 062 Other fixed income securities 5 326 – – – – – 5 326 39 033
Other acquisition costs - policy stamps 60 521 346 – 2 13 585 – 74 454 72 444 Listed equities securities and mutual
fund units 7 964 758 – 2 310 – 73 456 – 8 040 524 ( 74 061 )
Total acquisition cost 3 426 043 307 338 67 291 540 015 7 371 4 281 125 4 375 494
7 687 886 – 2 186 – 73 456 – 7 763 528 748 228
Administration expenses
(Provision for) / Reversal of impairment
Salaries and other benefits 366 585 61 013 – 42 59 422 2 270 489 332 444 050 in value of investments
Travelling expenses 67 929 5 754 – 3 3 803 56 77 545 61 694
Available-for-sale fixed income
Cede money - Waqf – – – – – – – 2 000 securities – – – – – – – ( 6 559 )
Actuary's fees 8 509 466 – 1 1 224 – 10 200 9 880
Available-for-sale equity securities
Medical fees 19 017 661 – – 537 – 20 215 19 136 and mutual fund units – 3 875 – 98 – – 3 973 4 439
Legal and professional fee 33 728 6 341 – 4 6 909 21 47 003 29 938
– 3 875 – 98 – – 3 973 ( 2 120 )
Advertisements and publicity 172 936 15 323 – – 2 488 – 190 747 93 870
Computer expenses 12 959 731 – 2 1 860 1 15 553 15 871 15 300 612 119 635 4 114 702 114 925 264 15 540 252 8 658 683
Printing and stationery 26 409 2 022 – 3 3 821 34 32 289 33 530 Less : Investment related expense ( 5 844 ) – – – – – ( 5 844 ) ( 4 692 )
Depreciation 19.4 43 097 4 534 – 5 5 742 125 53 503 21 770
Add: Wakala/Wakalat-ul-istasmar Income – – – – 105 688 13 902 119 590 15 956
Amortization 8 801 482 – 1 1 266 – 10 550 7 054
Rental 25 245 4 876 – 3 3 513 189 33 826 24 448 Net investment income 15 294 768 119 635 4 114 702 220 613 14 166 15 653 998 8 669 947
Exchange (gain) / loss ( 4 393 ) – – – – – ( 4 393 ) ( 5 642 )
Postage 47 931 2 629 – 6 7 133 – 57 699 62 787
Fees and subscription 45 370 2 755 – 5 9 732 47 57 909 24 283
Wakala/Wakalat-ul-istasmar Expenses – – – – 105 688 13 902 119 590 15 956
Other management expenses 21 87 745 8 561 – 10 14 130 244 110 690 142 930
Gross management expenses 4 387 911 423 486 67 376 767 283 24 260 5 603 383 5 379 049
Commission from reinsurers ( 14 860 ) ( 213 ) – – ( 8 785 ) – ( 23 858 ) ( 18 851 )
Fees charged to policy holders ( 10 098 ) – – – ( 19 ) – ( 10 117 ) ( 8 699 )
Net management expenses 4 362 953 423 273 67 376 758 479 24 260 5 569 408 5 351 499

93
Notes to the Financial Statements
For The Year Ended 31 December 2016
1. STATUS AND NATURE OF BUSINESS 5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1.1 EFU Life Assurance Limited (the Company) was incorporated in Pakistan on 09 August 1992 as a public limited 5.1 The accounting policies adopted in the preparation of these financial statements are consistent with those of the
company under the Companies Ordinance, 1984 and started its operation from 08 November 1992. The shares of previous financial year except for the policies and standards disclosed in note 5.2 of these financial statements which
the Company are quoted on New Pakistan Stock Exchange. The registered office of the Company is located at Al- have been adopted by the Company during the current year.
Malik Centre, 70W, F-7/G-7 Jinnah Avenue, Islamabad while principal place of business is located at Plot No.112,
8th Street, Phase 1, DHA, Karachi, Pakistan. The significant accounting policies adopted in the preparation of these financial statements are set out below:
1.2 The Company is engaged in life insurance business including ordinary life business, pension fund business and 5.1.1 Reinsurance assets
accident and health business and has established following statutory funds, as required by the Insurance Ordinance, Reinsurance contracts entered into by the Company with reinsurers for compensation of losses suffered on insurance
2000 and Takaful Rules, 2012: contracts issued. Claim recoveries receivable from the reinsurers are recognized at the same time as the claim which
give rise to the right of recovery and are measured at the amount expected to be recovered.
– Investment Linked business (includes individual life business)
Reinsurance assets represent balances due from reinsurance companies which are stated on the basis of amounts
– Conventional business (includes group life and individual life businesses)
receivable under the respective contract after considering any impairment in the value of such assets.
– Pension business (unit linked)*
5.1.2 Statutory funds
– Accident and health business
The Company maintains statutory funds for all classes of life insurance business. Assets, liabilities, revenues and
– Individual Family Takaful (Refer note 1.3) expenses are recorded in respective funds, if referable or, on the basis of actuarial advice if not referable. Other
assets, liabilities, revenues and expenses are allocated to shareholders' fund. Policyholders' liabilities have been
– Group Family Takaful (Refer note 1.3) included in statutory funds on the basis of the actuarial valuation carried out by the appointed actuary of the
Company on the balance sheet date as required by Section 50 of the Insurance Ordinance, 2000. A capital transfer
* The Company had discontinued pension business and accordingly no new business has been written under this
provided to statutory funds by the shareholders’ fund is recorded as a reduction in the shareholders’ equity. Changes
fund.
in the amount of capital contributed to statutory funds is recorded by the shareholders' funds directly in equity.
1.3 The Company was granted authorization on 19 January 2015 under Rule 6 of the Takaful Rules, 2012 to undertake
Takaful Window Operation in respect of family takaful products by Securities and Exchange Commission of Pakistan 5.1.3 Policyholders' liabilities
(SECP) and subsequently the Company commenced Window Takaful Operations on 6 February 2015 under the Policyholders' liabilities are stated at a value determined by the appointed actuary through an actuarial valuation
brand name "Hemayah". For the purpose of carrying on takaful business, the Company has formed a Waqf namely carried out as at each balance sheet date. In determining the value, both acquired policy values (which forms the
EFU Life - Window Family Takaful Limited Waqf (here-in-after referred to as the Participant Takaful Fund (PTF)) was bulk of policyholders' liabilities) as well as estimated values which will be payable against risks which the Company
formed on 6 February 2015 under a Waqf deed executed by the Company with a cede amount of Rs. 2 million. The underwrites are taken into account. The bases used are applied consistently from year to year.
cede money is required to be invested in Shariah compliant investments and any profit thereon can be utilized only
to pay benefits to participants or defray PTF expenses. Waqf deed also governs the relationship of the Company The basic liability consists of the estimated actuarial liability against each contract which is in force. To this are added:
and policyholders for the management of Takaful operations, investment of policyholders' funds and shareholders' a) The cash value of policies which have lapsed over the last two years and where the liability would be reinstated
funds as approved by the Shariah Advisor appointed by the Company. in case of the policy being revived; and
2. BASIS OF PRESENTATION b) A reserve for potential losses on a policy by policy basis.
These financial statements have been prepared in accordance with the format prescribed under Securities and
Exchange Commission (Insurance) Rules, 2002 [SEC (Insurance) Rules, 2002]. 5.1.4 Provision for outstanding claims
A liability for outstanding claims is recognized in respect of all claims incurred up to the balance sheet date, except
3. STATEMENT OF COMPLIANCE for accident and health claims which are recognized as soon as reliable estimates of the claim amount can be made.
These financial statements have been prepared in accordance with approved accounting standards as applicable Claims where intimation of the event giving rise to the claim is received or in respect of investment linked business
in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) when the policy ceases to participate in the earnings of the statutory fund are reported as claims in the revenue
issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984, account. The liability for claims incurred but not reported at the year end is determined by the Appointed Actuary
provisions of and directives issued under the Companies Ordinance, 1984, the Insurance Ordinance, 2000, SEC and are included in the policyholders' liabilities. Experience refund of premium calculated by appointed actuary is
(Insurance) Rules, 2002 and Takaful Rules, 2012. In case requirements differ, the provisions or directives of the included in outstanding claims. Experience refund of premium receivable from reinsurers is included in the reinsurance
Companies Ordinance, 1984, Insurance Ordinance, 2000, SEC (Insurance) Rules, 2002 and Takaful Rules, 2012 shall recoveries of claim.
prevail.
5.1.5 Investments
The SECP has allowed the insurance companies to defer the application of International Accounting Standard – 39 All investments are initially recognized at cost, being the fair value of the consideration given and include transaction
(IAS-39) “Financial Instruments: Recognition and Measurement” in respect of valuation of “available-for-sale costs except for held-for-trading investments in which case transaction costs are charged to the profit and loss
investments”. Accordingly, the requirements of IAS-39, to the extent allowed by SECP as aforesaid, have not been account. All purchase and sale of investments that require delivery within the required time frame established by
considered in the preparation of these financial statements (also see note 17.6). regulations or market convention are accounted for at the trade date. Trade date is the date when the Company
commits to purchase or sell the investments. Subsequently the investments are classified as follows:
4. BASIS OF MEASUREMENT
These financial statements have been prepared on the basis of the historical cost convention except revaluation of Held-for-trading
certain investments at fair value. Investments which are acquired principally for the purposes of generating profit from short term fluctuation in price
are classified as held-for-trading.

95
Subsequent to initial recognition, these investments are remeasured at fair value. Gains or losses on investments 5.1.9 Taxation
on remeasurement of these investments are recognized in profit and loss account or the revenue account as the
Current
case may be.
Provision of current tax is based on the taxable income for the year determined in accordance with the prevailing
Held-to-Maturity law for taxation of income. The charge for current tax is calculated using prevailing tax rates or tax rates expected
At the time of acquisition, investments with fixed maturity, where management has both the intent and the ability to apply to the profit for the year, if enacted. The charge for current tax also includes adjustments, where considered
to hold to maturity, are classified as held-to-maturity. necessary, to provision for tax made in previous years arising from assessments finalized during the current year for
such years.
Investments classified as held-to-maturity are subsequently measured at amortized cost, taking into account any
discount or premium on acquisition, using the effective interest rate method. Deferred
Deferred tax is accounted for using the balance sheet liability method in respect of all temporary differences at the
Available-for-Sale balance sheet date between the tax bases and carrying amounts of assets and liabilities for financial reporting
Investments which do not fall in the above category are classified as available-for-sale. purposes. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax
assets are recognized to the extent that it is probable that taxable profits will be available against which the deductible
Available-for-sale investments relating to the units assigned to policies of investment linked business and pension
temporary differences, unused tax losses and tax credits can be utilized.
business are subsequently measured at their fair values and the difference taken to respective revenue accounts.
Other available-for-sale investments are subsequently measured at lower of cost or market value (market value being Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the
taken as lower if fall is other than temporary). asset is realized or the liability is settled, based on the tax rates (and tax laws) that have been enacted or substantively
enacted at the balance sheet date. Deferred tax is charged or credited in the profit and loss account, except in the
5.1.6 Revenue recognition case of items credited or charged to equity in which case it is included in equity.
– First year individual life premiums are recognized once the related policies have been issued and the premiums
received. Renewal premiums are recognized upon receipt of premium provided the policy is still in force. Single 5.1.10 Dividends and other appropriations
premiums are recognized once the related policies are issued against the receipts of premium. Cash dividend to shareholders is recognized as liability in the period in which it is approved. Similarly all other
appropriations other than those required by law including reserve for issue of bonus shares are recognized in the
– Group life premiums are recognized when due. A provision for unearned premiums is included in the policyholders'
period in which they are approved.
liabilities.
– Reinsurance expense is recognized as a liability in accordance with the pattern of recognition of related premium. 5.1.11 Segment reporting
A business segment is a group of assets and operations engaged in providing products or services that are subject
– Interest income on bank deposits is recorded on a time proportion basis. to risks and returns that are different from those of other business segments. The Company accounts for segment
– Fixed income securities are recorded on a time proportion basis using effective interest rate method. reporting using the classes or sub classes of business (statutory funds) as specified under the Insurance Ordinance,
2000 and (Insurance) Rules, 2002.
– Dividend income is recognized when right to receive such dividend is established.
Based on its classification of Insurance contracts issued, the Company has four business segments for reporting
5.1.7 Acquisition costs purposes namely investment linked business, conventional business, pension business and accident and health
business.
These are costs incurred in acquiring insurance policies, maintaining such policies, and include without limitation
all forms of remuneration paid to insurance agents. 5.1.12 Fixed Assets
Commissions and other expenses are recognized as an expense in the earlier of the financial year in which they are Tangible assets
paid and financial year in which they become due and payable, except that commission and other expenses which
These are stated at cost less accumulated depreciation and accumulated impairment loss, if any.
are directly referable to the acquisition or renewal of specific contracts are recognized not later than the period in
which the premium to which they refer is recognized as revenue. Depreciation is calculated so as to write off the depreciable amount of the assets over their expected useful lives
at the rates specified in note 19.2 to the financial statements, after taking into account residual value, if any. The
5.1.8 Employees' retirement benefits - defined contribution plans useful lives, residual values and depreciation methods are reviewed and adjusted, if appropriate, at each balance
5.1.8.1 The Company operates a contributory provident fund for all eligible employees to which equal monthly contributions sheet date.
at the rate of 8.33% of basic salary are made by both the Company and the employees. The contributions are
recognized as employee benefit expense when they are due. Depreciation on additions is charged from the quarter in which an asset is available for use while no depreciation
is charged for the quarter in which asset is disposed off.
5.1.8.2 The Company also operate an approved funded contributory pension scheme, whereby, fixed monthly contributions
at the rate of 10% of the basic salary are made by the Company and the employees also have an option to contribute Subsequent cost are included in the assets carrying amount or recognized as separate asset, as appropriate, only
in the fund at the rate of 5%. At the time of retirement, employees are paid in full for their contribution (if any) when it is possible that the future economic benefit associated with the item will flow to the Company and the cost
and Company's contribution accumulated in the fund is paid to employees over the period of time in accordance of the item can be measured reliably. Normal repairs and maintenance are charged to income currently.
with the rules of the fund. An item of fixed asset is derecognized upon disposal or when no future economic benefits are expected from its
use or disposal. Gain and losses on disposal, if any, of assets are included in income currently.
The carrying value of tangible fixed assets is reviewed for impairment when events or changes in circumstances
indicate that this carrying value may not be recoverable. If any such indications exist and where the carrying values
exceed the estimated recoverable amounts, the assets are written down to their recoverable amount.

97
Intangible assets 5.2 Significant Accounting Policies - Window Family Takaful Operations
These are stated at cost less accumulated amortization and any impairment in value. Amortization on intangible 5.2.1 Takaful Contracts
fixed assets is charged to income applying the straight line method at the rates specified in note 19.3 to the financial
The takaful contracts are based on the principles of Wakala Waqf Model. Takaful is a program based on Shariah
statements after taking into account residual value, if any.
compliant, approved concept founded on the principles of mutual cooperation, solidarity and brotherhood.
Amortization is charged from the quarter the assets are available for use and no amortization is charged for the
The obligation of Waqf for Waqf participants' liabilities is limited to the amount available in the Waqf fund. In the
quarter in which the asset is disposed off. The useful life and amortization method is reviewed, and adjusted if
event where there is insufficient funds in Waqf to meet their current payments less receipts, the deficit is funded
appropriate, at each balance sheet date.
by way of an interest free loan (Qard-e-Hasna) from the shareholders' fund to the statutory fund (Takaful Business
The carrying values of intangible fixed assets are reviewed for impairment when events or changes in circumstances Statutory Funds). The amount of Qard-e-Hasna is refundable to the shareholders' fund.
indicate that this carrying value may not be recoverable, if any such indication exists and where the carrying values
Technical reserves are stated at a value determined by the appointed actuary through an actuarial valuation carried
exceed the estimated recoverable amount, the assets are written down to their recoverable amount.
out as at each balance sheet date, in accordance with section 50 of the Insurance Ordinance, 2000.
Capital work-in-progress
5.2.2 Group Takaful
Capital work-in-progress is stated at cost less impairment losses, if any.
The group family takaful contracts are issued typically on yearly renewable term basis. The Company offers group
5.1.13 Cash and cash equivalents term life and group credit plans to its participants.
For the purpose of statement of cash flows, cash and cash equivalents include the following: 5.2.3 Individual Takaful Contracts Unit-Linked
– Cash at bank in current and saving accounts The Company offers unit Linked Takaful plans which provide Shariah compliant financial protection and investment
vehicle to individual participants contribution received from policyholders, after deducting specific charges and
– Policy stamps in hand takaful donations, are invested in internal unit funds of the Company.
– Term deposits maturing within 12 months The basic plan contains family takaful cover over and above the unit value with additional protection.
5.1.14 Foreign currency transactions 5.2.4 Retakaful
5.1.14.1 Functional and presentation currency These contracts are entered into by the Company with retakaful operator under which the retakaful operator cedes
These financial statements are presented in Pak Rupee, which is the Company’s functional and presentation currency. the takaful risk assumed during normal course of its business and according to which the Waqf is compensated for
losses on contract issued by it are classified as retakaful contracts held.
5.1.14.2 Foreign currency translations
Retakaful Contribution
Foreign currency transactions during the year are recorded at the exchange rates approximating those ruling on
Retakaful contribution is recorded at the time the retakaful is ceded. Surplus from retakaful operator is recognized
the date of the transaction. Monetary assets and liabilities in foreign currencies are translated at the rates of exchange
in the revenue account.
which approximate those prevailing on the balance sheet date. Gain and losses on translation are taken into income
currently. Non monetary-items that are measured in terms of historical cost in a foreign currency are translated using Retakaful Expenses
the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value was determined. Retakaful expenses are recognized as a liability in accordance with the pattern of recognition of related contribution.
5.1.15 Provisions Retakaful assets and liabilities

Provisions are recognized when the Company has a legal or constructive obligation as a result of a past event, and Retakaful assets represent balances due from retakaful operator. Recoverable amounts are estimated in a manner
it is probable that outflow of resources embodying economic benefits will be required to settle the obligation and consistent with the associated retakaful treaties.
a reliable estimate can be made of the amount of obligation. Retakaful liabilities represent balances due to retakaful companies. Amounts payable are calculated in a manner
consistent with the associated retakaful treaties.
5.1.16 Financial Instruments
Financial assets and financial liabilities are recognized at the time when the Company becomes a party to the Retakaful assets are not offset against related retakaful liabilities. Income or expenses from retakaful contract are
contractual provisions of the instrument. Financial assets are de-recognized when the contractual right to future not offset against expenses or income from related retakaful contracts as required by Insurance Ordinance, 2000.
cash flows from the asset expire or is transferred along with the risk and reward of the ownership of the asset. Retakaful assets and liabilities are derecognized when the contractual rights are extinguished or expired.
Financial liabilities are de-recognized when obligation specified in the contract is discharged, cancelled or expired.
Any gain or loss on de-recognition of the financial asset and liabilities is recognized in the profit and loss account 5.2.5 Business Segment - Window Family Takaful Operation
of the current year.
The Company has two primary business segment for reporting purposes; Individual Family Takaful and Group Family
5.1.17 Off-setting Takaful.
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet, if the Company a) The individual Family Takaful segments provides family takaful coverage to individuals under unit-linked policies
has a legally enforceable right to set-off and the Company intends either to settle the assets and liabilities on a net issued by the PTF.
basis or to realize the asset and settle the liability simultaneously.
b) The Group Family Takaful business segment provides family takaful coverage to member of business enterprises,
corporate entities and common interest groups under group family takaful scheme operated by the Company.

99
5.2.6 Takaful operator's fee and potentially the timing and amount of expense recognized for new and outstanding awards. The amendments
are not likely to have an impact on Company’s financial statements.
The shareholders of the Company manage the family takaful operations for the participants and act as Wakeel of
the Waqf fund. The Company is entitled for the wakala fee for the management of takaful operation under Waqf – Transfers of Investment Property (Amendments to IAS 40 ‘Investment Property’ -effective for annual periods
fund to meet its general and administrative expenses. beginning on or after 1 January 2018) clarifies that an entity shall transfer a property to, or from, investment
property when, and only when there is a change in use. A change in use occurs when the property meets, or
The window takaful operator is also entitled for Wakalt-ul-Istismar fee as it manages Participant Investment Fund. ceases to meet, the definition of investment property and there is evidence of the change in use. In isolation, a
5.2.7 Revenue recognition change in management's intentions for the use of a property does not provide evidence of a change in use. The
amendments are not likely to have an impact on Company’s financial statements.
Individual first year contribution are recognized once the related policies have been issued and the contribution
received. Renewal contribution are recognized upon receipt of contribution provided the policy is still in force. – Annual improvements to IFRS standards 2014-2016 cycle. The new cycle of improvements addresses improvements
Individual single contribution are recognized once the related policies are issued against the receipts of contribution. to following approved accounting standards:
Group contribution are recognized when due. A provision for unearned contribution is included in the policyholders' – Amendments to IFRS 12 ‘Disclosure of Interests in Other Entities’ (effective for annual periods beginning on or
liabilities. after 1 January 2017) clarify that the requirements of IFRS 12 apply to an entity’s interests that are classified as
held for sale or discontinued operations in accordance with IFRS 5 – ‘Non-current Assets Held for Sale and
6. SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES Discontinued Operations’. The amendments are not likely to have an impact on Company’s financial statements.
The preparation of financial statements in conformity with approved accounting standards requires the use of certain – Amendments to IAS 28 ‘Investments in Associates and Joint Ventures’ (effective for annual periods beginning
critical accounting estimates. It also requires management to exercise its judgment in the process of applying the on or after 1 January 2018) clarifies that a venture capital organization and other similar entities may elect to
Company’s accounting policies. Estimates and judgments are continually evaluated and are based on historic measure investments in associates and joint ventures at fair value through profit or loss, for each associate or
experience and other factors, including expectations of future events that are believed to be reasonable under the joint venture separately at the time of initial recognition of investment. Furthermore, similar election is available
circumstances. Revisions to accounting estimates are recognized in the period in which the estimate is revised and to non-investment entity that has an interest in an associate or joint venture that is an investment entity, when
any future periods affected. applying the equity method, to retain the fair value measurement applied by that investment entity associate
In the process of applying the Company’s accounting policies, management has made the following estimates and or joint venture to the investment entity associate's or joint venture's interests in subsidiaries. This election is
judgments which are significant to the financial statements: made separately for each investment entity associate or joint venture. The amendments are not likely to have
an impact on Company’s financial statements.
Note
Policyholders' liabilities and underlying actuarial assumptions 5.1.3, 9 & 29.3 – IFRIC 22 ‘Foreign Currency Transactions and Advance Consideration’ (effective for annual periods beginning on
Provision for outstanding claims 5.1.4 & 12 or after 1 January 2018) clarifies which date should be used for translation when a foreign currency transaction
Classification and impairment of investments 5.1.5 & 17 involves payment or receipt in advance of the item it relates to. The related item is translated using the exchange
Taxation and deferred taxation 5.1.9 & 11 rate on the date the advance foreign currency is received or paid and the prepayment or deferred income is
Determining the residual value and useful lives of fixed assets 5.1.12 & 19 recognized. The date of the transaction for the purpose of determining the exchange rate to use on initial
recognition of the related asset, expense or income (or part of it) would remain the date on which receipt of
6.1 New, Amended And Revised Standards And Interpretations of IFRSs payment from advance consideration was recognized. If there are multiple payments or receipts in advance, the
entity shall determine a date of the transaction for each payment or receipt of advance consideration.
During the year certain standards became effective, however, they don’t have material effect on these financial
statements of the Company. The above amendments are not likely to have an impact on Company’s financial statements.
7. STANDARDS, INTERPRETATIONS AND AMENDMENTS TO APPROVED ACCOUNTING STANDARDS THAT ARE
NOT YET EFFECTIVE 8. SHARE CAPITAL (Rupees ‘000)
The following standards, amendments and interpretations of approved accounting standards will be effective for
accounting periods beginning on or after 01 January 2017: Authorised Share Capital
– Amendments to IAS 12 ‘Income Taxes’ are effective for annual periods beginning on or after 1 January 2017. 2016 2015 2016 2015
The amendments clarify that the existence of a deductible temporary difference depends solely on a comparison
of the carrying amount of an asset and its tax base at the end of the reporting period, and is not affected by (Number of Shares)
possible future changes in the carrying amount or expected manner of recovery of the asset. The amendments 150 000 000 150 000 000 Ordinary shares of Rs 10 each 1 500 000 1 500 000
further clarify that when calculating deferred tax asset in respect of insufficient taxable temporary differences,
the future taxable profit excludes tax deductions resulting from the reversal of those deductible temporary
differences. The amendments are not likely to have an impact on Company’s financial statements. Paid up Share Capital
– Amendments to IAS 7 ‘Statement of Cash Flows’ are part of IASB’s broader disclosure initiative and are effective 2016 2015 2016 2015
for annual periods beginning on or after 1 January 2017. The amendments require disclosures that enable users
(Number of Shares)
of financial statements to evaluate changes in liabilities arising from financing activities, including both changes
arising from cash flow and non-cash changes. 15 000 000 15 000 000 Ordinary shares of Rs 10 each issued for cash 150 000 150 000
– Amendments to IFRS 2 - Share-based Payment clarify the accounting for certain types of arrangements and are Ordinary shares of Rs 10 each issued as fully
effective for annual periods beginning on or after 1 January 2018. The amendments cover three accounting 85 000 000 85 000 000 paid bonus shares 850 000 850 000
areas (a) measurement of cash-settled share-based payments; (b) classification of share-based payments settled 100 000 000 100 000 000 1 000 000 1 000 000
net of tax withholdings; and (c) accounting for a modification of a share-based payment from cash-settled to
equity-settled. The new requirements could affect the classification and/or measurement of these arrangements 8.1 As of balance sheet date 43,059,240 (2015: 43,059,240) ordinary shares of Rs. 10/- each were held by the associated
company.

101
9. POLICYHOLDERS’ LIABILITIES 11. DEFERRED TAX LIABILITY
Statutory Funds 2016 2015

Deferred tax liability arising
Investment Pension Accident Individual Group in respect of:
Linked Conventional Business & Health Family Family Aggregate Aggregate
Accelerated tax depreciation 131 000 15 800
Business Business (Unit Linked) Business Takaful Takaful 2016 2015
9.1 Gross of reinsurance (Rupees ‘000)
Actuarial liability relating As at Profit and As at Profit and As at
to future events 93 598 117 536 193 24 633 2 041 1 317 827 12 255 95 491 066 81 952 070
1 January loss 31 December loss 31 December
Provision for outstanding 2015 account 2015 account 2016
reported claims payable 11.1 Movement of deferred tax
over a period exceeding
twelve months 444 421 117 251 – 12 374 – 562 058 488 899 Deferred tax liability arising
in respect of:
Provision for incurred but not
reported claims 128 486 250 974 – – – – 379 460 272 179 Accelerated tax depreciation allowances 14 900 900 15 800 115 200 131 000
14 900 900 15 800 115 200 131 000
94 171 024 904 418 24 633 2 053 1 318 201 12 255 96 432 584 82 713 148
(Rupees ‘000)
9.2 Net of reinsurance
Actuarial liability relating Note 2016 2015
to future events 93 477 808 432 245 24 608 1 816 1 307 295 8 011 95 251 783 81 704 013
12. OUTSTANDING CLAIMS
Provision for outstanding Investment linked business 12.1 834 990 749 705
reported claims payable Conventional business 12.2 847 023 703 689
over a period exceeding
twelve months 284 556 39 221 – 9 374 – 324 160 268 383 Pension business 12.3 – –
Accident and health business 12.4 1 345 1 884
Provision for incurred but Individual Family Takaful 12.5 6 028 –
not reported claims 100 691 192 615 – – – – 293 306 212 975
Group Family Takaful 12.6 3 331 2 832
93 863 055 664 081 24 608 1 825 1 307 669 8 011 95 869 249 82 185 371 1 692 717 1 458 110
12.1 Investment linked business
10. RECONCILIATION OF STATUTORY FUNDS Outstanding claims at the beginning of the year 749 705 589 981
Cash paid during the year ( 16 397 184 ) ( 7 894 744 )
(Rupees ‘000)
Net increase in liabilities due to current year claims 16 482 469 8 054 468
Statutory Funds Outstanding claims at the end of the year 834 990 749 705
Investment Pension Accident Individual Group 12.2 Conventional business
Linked Conventional Business & Health Family Family Aggregate Aggregate Outstanding claims at the beginning of the year 703 689 526 667
Cash paid during the year ( 1 610 503 ) ( 1 153 444 )
Policyholders’ liabilities Net increase in liabilities due to current year claims 1 753 837 1 330 466
Balance at beginning of the year 81 600 231 495 921 21 258 2 691 62 328 2 942 82 185 371 59 923 260 Outstanding claims at the end of the year 847 023 703 689
Increase / (decrease) during the year 12 262 824 168 160 3 350 ( 866 ) 1 245 341 5 069 13 683 878 22 262 111 12.3 Pension Business
Balance at end of the year 93 863 055 664 081 24 608 1 825 1 307 669 8 011 95 869 249 82 185 371 Outstanding claims at the beginning of the year – –
Cash paid during the year ( 643 ) ( 2 893 )
Retained earnings on other than
participating business
Net increase in liabilities due to current year claims 643 2 893
Outstanding claims at the end of the year – –
Balance at beginning of the year 1 304 760 319 959 341 535 15 134 3 093 1 643 822 1 299 107
12.4 Accident & Health Business
Surplus for the year 2 522 680 27 243 1 041 1 206 ( 62 674 ) 8 628 2 498 124 2 466 791
Capital contribution – – – – 85 449 3 807 89 256 –
Outstanding claims at the beginning of the year 1 884 796
Surplus appropriated to Cash paid during the year ( 1 924 ) ( 300 )
shareholders’ fund ( 2 340 660 ) 16 868 ( 990 ) ( 1 296 ) – – ( 2 326 078 ) ( 2 122 076 ) Net increase in liabilities due to current year claims 1 385 1 388
Balance at end of the year 1 486 780 364 070 392 445 37 909 15 528 1 905 124 1 643 822
Outstanding claims at the end of the year 1 345 1 884
(refer note no. 10.1) 12.5 Individual Family Takaful
Balance of statutory funds 95 349 835 1 028 151 25 000 2 270 1 345 578 23 539 97 774 373 83 829 193 Outstanding claims at the beginning of the year – –
Cash paid during the year ( 88 957 ) –
10.1 The SECP has issued amendments to the SEC (Insurance) Rules 2002, which includes revision in the solvency margin Net increase in liabilities due to current year claims 94 985 –
requirements for life insurers. Keeping in view such future solvency requirements, the Company has retained an Outstanding claims at the end of the year 6 028 –
aggregate amount of Rs. 1 861 million (2015: Rs. 1 616 million) in the Statutory Funds based on the advice of the
12.6 Group Family Takaful
appointed actuary.
Outstanding claims at the beginning of the year 2 832 –
Cash paid during the year ( 18 043 ) ( 2 300 )
Net increase in liabilities due to current year claims 18 542 5 132
Outstanding claims at the end of the year 3 331 2 832

103
12.7 As the Company settles most of the claim obligations within a year the claim development table has not been presented. 14.2 Bank guarantees amounting to Rs. 16.88 million has been given in respect of Group Life coverage. These bank
guarantees will expire by 30th June 2017 and 31st March 2018.
12.8 Statement of Age wise Break up of Unclaimed Insurance Benefits
As on 31 December 2016
This represents outstanding claims in respect of which cheques have been issued by the Company for claim settlement. (Rupees ‘000)
However, the same have not been encashed by the claimant. Following is the aging as required by the SECP Circular
No.11 of 2014 dated 19 May 2014. Note 2016 2015
(Rupees ‘000) 15. CASH AND BANK DEPOSITS
Particulars Age Wise Breakup Policy stamps in hand 4 379 8 545

Total 1 to 6 7 to 12 13 to 24 25 to 35 Beyond 36 Current and other accounts
Amount months months months months months
Cash at bank - PLS saving accounts 15.1 2 709 366 2 440 105
Unclaimed Maturity Benefits 50 120 35 332 11 152 1 782 1 729 125
Cash at bank - Current accounts 323 744 1 097 937
Unclaimed Death Benefits – – – – – –
Unclaimed Disability Benefits – – – – – – 3 033 110 3 538 042
Claims not encashed 2 832 – 10 756 583 1 483
Deposits maturing within 12 months
Other Unclaimed benefits – – – – – –
Total 52 952 35 332 11 162 2 539 2 312 1 608 Term deposit receipts 15.2 9 358 100 10 860 000
12 395 589 14 406 587
13. OTHER CREDITORS AND ACCRUALS
(Rupees ‘000) 15.1 These carry mark-up ranging from 4.25% to 5.28% (2015: 4.5% to 6.90%) per annum and include balance of Rs.
29.65 million (2015: Rs. 52.768 million) held with JS Bank Limited (a related party).
Statutory Funds
Investment Pension Accident Individual Group 15.2 These have tenure of one to three months (2015: one to three month) and carry mark-up at the rate 4.24% to
Shareholders’ Linked Conventional Business & Health Family Family Aggregate Aggregate 6.45% (2015: 6.10% to 7.15%) per annum and includes term deposit receipts of Rs. 2.15 billion (2015: Rs. 2.15
billion) held with JS Bank Limited (a related party) which carries mark-up at the rate 6.45% (2015: 6.75%).
Staff Bonus payable – 102 790 1 110 42 49 – – 103 991 88 387
Payable to Workers' Welfare Fund – 12 833 – – – – – 12 833 59 820 (Rupees ‘000)
Medical fee payable – 1 698 196 – – – – 1 894 1 856
Sundry creditors payable – 62 019 2 970 – 7 – – 64 996 1 722 Note 2016 2015
Withholding tax payable – 9 399 1 092 – 1 – – 10 492 752
Others 12 852 4 824 521 1 – 134 051 25 000 177 249 116 182 16. LOANS
Total 12 852 193 563 5 889 43 57 134 051 25 000 371 455 268 719 To employees - secured 16.1 80 918 85 094
14. CONTINGENCIES AND COMMITMENTS To employees and agents - unsecured 16.2 10 994 15 093
14.1 The Income tax assessment of the Company for tax year 2016 has been finalized. The tax department has reopened 91 912 100 187
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 16.1 This represent housing and vehicle loans to employees at the interest rate ranging between 8% to 12.5% (2015:
available in the First schedule of Income Tax Ordinance 2001. The Company filed an appeal 'for tax year 2009-2013 8% to 12.5%) per annum. These loans are recoverable over a period of one to ten years (2015: one to ten years)
before CIT appeals where the case was decided against the Company. The Company has filed an appeal before and are secured against retirement benefit payable to respective employees and security documents of property /
Appellate Tribunal for the same tax years and believes that the matter will be settled in its favour. For tax year 2014, vehicle.
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 and 2016, the Company has filed an appeal before CIT appeal. No provision has 16.2 This represent loans to employees and agents for domestic purposes at the interest rates ranging between 8% to
been made in respect of aforementioned additional demand. 12.5% (2015: 8% to 12.5%) per annum. These loans are recoverable over a period of one to seven years (2015:
one to seven years).
In 2013 Income Tax Department imposed an additional tax demand under section 151(1)(d) on account of non-
deduction of withholding tax on surrender and maturity amounting to Rs. 13.833 million and Rs. 15.014 million (Rupees ‘000)
for Tax Year 2012 and 2013 respectively. The Company filed an appeal before Commissioner Inland Revenue
(Appeals) and the same was dismissed. The Company filed second appeal before the Appellate Tribunal against the Note 2016 2015
order of CIT. The learned Appellate Tribunal Inland revenue has decided the case in Company's favour. 17. INVESTMENTS
In 2015 and 2016, The searle company limited issued bonus shares (76,031 shares and 342,480 shares respectively) Government securities 17.1 48 870 068 49 251 553
after withholding 5 percent of bonus shares (3,801.55 shares and 18,707.44 shares respectively) and the IBL
Other fixed income securities 17.2 1 575 511 1 434 650
Healthcare ltd. 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 Listed equity securities and mutual fund units 17.3 38 385 096 21 254 612
by the company in Sindh High Court challenging the applicablity of withholding tax provision on bonus shares Unlisted equity securities 17.4 508 508
received by the Company. The honorable high court decide the case against the Company. Subsequently, the 88 831 183 71 941 323
Company filed an appeal with a larger bench of the Sindh High Court and in response the Sindh High Court has
suspended the earlier judgement 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 it's favour and no provision has been made for the aforementioned tax.

105
17.1. Government Securities (Rupees ‘000) 17.1.1 Market Value of government securities carried at amortized cost amounted to Rs. 3 492.21 million (2015:
Statutory Funds Rs. 3 023.76 million)
Maturity Coupon Investment Pension Accident & Individual Group
Year Rate per Shareholders’ Linked Conventional Business Health Family Family Aggregate Aggregate 17.1.2 Government securities includes Rs.115 million (2015: Rs. 115 million) placed with the State Bank of Pakistan in
Annum % Fund Business Business (Unit Linked) Business Takaful Takaful 2016 2015 accordance with Section 29 of the Insurance Ordinance 2000.
Held to maturity
(at amortised cost) 17.2 Other fixed income securities
3 Months (Rupees ‘000)
Treasury Bills 2017 5.82% 279 461 – – 1 599 5 497 – – 286 557 – Statutory Funds
6 Months Maturity Coupon Investment Pension Accident & Individual Group
Treasury Bills 2017 5.93% 979 946 – 1 518 718 – – – – 2 498 664 123 863 Year Rate per Shareholders’ Linked Conventional Business Health Family Family Aggregate Aggregate
GOP IJARA Annum % Fund Business Business (Unit Linked) Business Takaful Takaful 2016 2015
Sukuk Certificates 2017 4.39% – – – – – 2 500 2 500 5 000 5 000
3 Years Pakistan Held– to– maturity
Investment Bonds 2018 8.75% 304 932 – – – – – – 304 932 1 867 512 (at amortised cost)
5 Years Pakistan
Investment Bonds 2016 11.50% – – – – – – – – 247 524 Term Finance Certificates
5 Years Pakistan
Investment Bonds 2018 8.75% – – – – – – – – 309 028 Azgard Nine Ltd PPTFC 1 2019 NPD – – 5 550 – 793 – – 6 343 6 343
10 Years Pakistan Azgard Nine Ltd TFC 5th Issue 2014 NPD – – 4 321 – 618 – – 4 939 4 939
Investment Bonds 2017 9.6% – 89 616 – – – – – 89 616 89 067
10 Years Pakistan – – 9 871 – 1 411 – – 11 282 11 282
Investment Bonds 2018 12% – 116 242 99 354 – – – – 215 596 214 879 Available– for– sale
15 Years Pakistan (at fair value)
Investment Bonds 2019 9% 10 308 – – – – – – 10 308 10 444
20 Years Pakistan Term Finance Certificates
Investment Bonds 2024 10% – 54 401 – – – – – 54 401 54 469
Agritech Limited TFC 5th Issue 2016 NPD – 36 266 – – – – – 36 266 36 266
1 574 647 260 259 1 618 072 1 599 5 497 2 500 2 500 3 465 074 2 921 786
Available for sale Al Baraka Bank 2021 7.31% – 35 369 – – – – – 35 369 42 534
(at fair value) Azgard Nine Ltd PPTFC 1 2014 NPD – 63 029 – – – – – 63 029 63 029
3 Months
Treasury Bills 2017 5.93% – 901 029 – 5 996 – – – 907 025 497 659 Azgard Nine Ltd TFC 2 2019 NPD – 15 944 – – – – – 15 944 15 944
6 Months Azgard Nine Ltd TFC 5th Issue 2017 NPD – 58 191 – – – – – 58 191 58 191
Treasury Bills 2017 6.01% – 3 168 636 – 995 – – – 3 169 631 1 472 670
12 Months Bank Alfalah 4Th Issue 2017 15.00% – 21 086 – – – – – 21 086 32 813
Treasury Bills 2017 6.05% – 4 351 636 – 2 890 – – – 4 354 526 2 510 441 Bank Alfalah Ltd 20– 02– 13 2021 7.28% – 15 696 – – – – – 15 696 15 579
GOP IJARA
Sukuk Certificates 2017 4.39% – 5 000 – – – – – 5 000 5 000 Engro Corporation Islamic
GOP IJARA Rupiya Sukuk 2017 13.00% – 314 334 – – – – – 314 334 321 790
Sukuk Certificates 2018 5.89% – – – – – 30 141 – 30 141 –
GOP IJARA Engro Fertilizer Sukuk 2019 8.21% – 242 059 – – – – – 242 059 253 953
Sukuk Certificates 2019 6.10% – – – – – 60 695 – 60 695 – Fatima Fertilizer Sukuk 2021 6.10% – 49 035 – – – – – 49 035 –
GOP IJARA
Sukuk Certificates 2019 5.59% – 50 000 – – – 50 000 – 100 000 – Hascol Petroleum Ltd.
8 Years WAPDA Sukuk (07– 01– 2016) 2022 7.53% – 155 496 – – – – – 155 496 –
Sukuk Certificates 2021 7.60% – 215 392 – – – – – 215 392 257 160 New Allied 2014 NPD – 9 420 – – – – – 9 420 9 420
3 Years Pakistan
Investment Bonds 2016 11.25% – – – – – – – – 8 011 457 NIB Bank Limited (19– 06– 2014) 2022 7.30% – 101 034 – – – – – 101 034 98 941
3 Years Pakistan K Electric AZM Sukuk 2 2017 8.75% – 353 040 – – – – – 353 040 356 277
Investment Bonds 2017 11.25% – 12 819 310 – – – – – 12 819 310 13 309 852
3 Years Pakistan K Electric AZM Sukuk 3 2019 8.85% – 78 362 – – – – – 78 362 78 361
Investment Bonds 2018 8.75% – 6 685 636 – – – – – 6 685 636 5 691 388
Pakistan Mobile
3 Years Pakistan
nvestment Bonds 2019 7.00% – 2 301 163 – – – – – 2 301 163 – Communication Limited 2016 9.24% – – – – – – – – 10 646
5 Years Pakistan Pakistan Mobile
Investment Bonds 2017 11.50% – 514 600 – – – – – 514 600 535 383 Communication Limited 2016 9.23% – – – – – – – – 13 756
5 Years Pakistan
Investment Bonds 2018 11.50% – – – – – – – – 351 569 – 1 548 361 – – – – – 1 548 361 1 407 500
5 Years Pakistan Less: Provision for impairment in the
Investment Bonds 2018 8.75% – 343 531 – – – – – 343 531 5 084 237
value of available– for– sale fixed
5 Years Pakistan
Investment Bonds 2019 11.50% – 5 057 044 – – – – – 5 057 044 5 217 583 income securities – note 17.2.1
5 Years Pakistan – (182 850) (9 871) – (1 411) – – (194 132) (194 132)
Investment Bonds 2020 9.25% – 5 334 630 – – – – – 5 334 630 – – 1 365 511 – – – – – 1 365 511 1 224 650
10 Years Pakistan
Investment Bonds 2024 12.00% – 121 440 – – – – – 121 440 116 507 Certificate of Investment –
10 Years Pakistan First Habib Modarba 2015 9.60% – 210 000 – – – – – 210 000 210 000
Investment Bonds 2017 9.60% – 255 525 – 2 044 – – – 257 569 263 319
10 Years Pakistan – 1 575 511 – – – – – 1 575 511 1 434 650
Investment Bonds 2018 12.00% – 9 805 – – – – – 9 805 10 051
10 Years Pakistan
Investment Bonds 2019 12.00% – 16 955 – – – – – 16 955 17 057 17.2.1Reconciliation of Provision
10 Years Pakistan
Investment Bonds 2022 12.00% – 2 513 070 – – – – – 2 513 070 2 413 259 Balance at beginning of the year – 182 850 9 871 – 1 411 – – 194 132 187 573
15 Years Pakistan (Reversal) / provision for impairment in value
Investment Bonds 2019 9.00% – 154 770 – – – – – 154 770 154 180 of investments – – – – – – – – 6 559
20 Years Pakistan
Investment Bonds 2024 10.00% – 430 852 – 2 209 – – – 433 061 410 995 Balance at the end of year – 182 850 9 871 – 1 411 – – 194 132 194 132
– 45 250 024 – 14 134 – 140 836 – 45 404 994 46 329 767
1 574 647 45 510 283 1 618 072 15 733 5 497 143 336 2 500 48 870 068 49 251 553

107
17.3 Listed equity securities and mutual fund units (Rupees ‘000)
(Rupees ‘000)
17.5 Investments by classification
Statutory Funds
2016 2015
Investment Pension Accident & Individual Group
Note Shareholders’ Linked Conventional Business Health Family Family Aggregate Aggregate Held-to-maturity
Fund Business Business (Unit Linked) Business Takaful Takaful 2016 2015 Government securities 3 465 074 2 921 786
Held-for-trading (at fair value) Other fixed income securities 221 282 221 282
Listed equities – 459 246 – – – – – 459 246 451 369 3 686 356 3 143 068
Available-for-sale (at fair value) Available-for-sale
Listed equities 17.3.3 – 36 223 541 – 7 284 – – – 36 230 825 19 756 346 Government securities (at fair value) 45 404 994 46 329 767
Open end mutual fund units – 51 531 – – – 460 252 – 511 783 166 915 Other fixed income securities (at fair value) 1 548 361 1 407 500
Listed equity securities and mutual fund units (at fair value) 36 742 608 19 923 261
Available-for-sale (at lower
of cost or fair value)
Listed equity securities and mutual fund units (at lower of cost or fair value) 1 586 143 1 483 290
Listed equities 17.3.2 & 17.3.3 1 311 086 76 553 144 867 – 1 035 – – 1 533 541 1 405 229 Unlisted equity securities (relating to shareholders' fund) 508 508
85 282 614 69 144 326
Open end mutual fund units 47 571 5 031 – – – – 52 602 78 061
Held-for-trading - listed equities 459 246 451 369
1 358 657 36 815 902 144 867 7 284 1 035 460 252 – 38 787 997 21 857 920
Less: Provision for impairment Less: Impairment in the value of available-for-sale investments
in the value of equity securities 17.3.1 ( 363 103 ) – ( 39 138 ) – ( 660 ) – – ( 402 901 ) ( 603 308 ) Impairment in the value of equity securities ( 402 901 ) ( 603 308 )
995 554 36 815 902 105 729 7 284 375 460 252 – 38 385 096 21 254 612 Impairment in the value of fixed income securities ( 194 132 ) ( 194 132 )
( 597 033 ) ( 797 440 )
17.3.1 Reconciliation of provision Total Investments - net of provision 88 831 183 71 941 323
Balance at the beginning of the year 559 537 – 43 013 – 758 – – 603 308 581 107
17.6 As per the Company's accounting policy and SECP's accounting regulations for Life Insurance companies certain,
(Reversal ) / charge for impairment
available-for-sale investments are stated at lower of cost or market value (market value being taken as lower if the
on available-for-sale investments ( 196 434 ) – ( 3 875 ) – ( 98 ) – – ( 200 407 ) 22 201
reduction is other than temporary). However, International Accounting Standard (IAS) 39, "Financial Instruments:
Balance at the end of the year 363 103 – 39 138 – 660 – – 402 901 603 308 Recognition and Measurements" dealing with the recognition and measurement of financial instruments requires that
these investments should be measured at fair value. Accordingly, had these investments been measured at fair value,
17.3.2 Listed equities include investment in EFU General Insurance Limited (an associated company) at carrying value of Rs. their carrying value as on 31 December 2016 would have been higher by Rs. 854.181 million (2015: higher by
Rs. 598.493 million).
1,486.093 million (2015: Rs. 1,132.62 million) representing 6.81% (2015: 6.81%) of the issued capital of the EFU
General Insurance Limited. 18. INVESTMENT INCOME ACCRUED (Rupees ‘000)
17.3.3 This includes investment in 3,178,851 (2015: 3,178,851) ordinary shares of Agritech limited which are not held in the Statutory Funds
name of the company. These shares are held in the name of Trustees i.e. Faysal Bank and Pak Brunei Investment Company, Investment Pension Accident Individual Group
on behalf of EFU Life Assurance Limited. The market value of these shares as at 31 December 2016 is Rs. 40.308 million Shareholders’ Linked Conventional Business & Health Family Family Aggregate Aggregate
(2015: Rs. 29.722 million).
Government securities 7 437 1 377 472 4 045 81 – 1 492 8 1 390 535 1 856 123
17.4 This represents investment in ordinary shares of Security General Insurance Company Limited. The breakup value of each Fixed income securities 1 215 297 090 70 8 – 503 – 298 886 108 200
ordinary share of Rs. 10 is Rs. 133.77 based on the latest audited financial statements available for the year ended 31 Dividend receivable 114 92 260 538 15 – 285 – 93 212 176
December 2015. The Company's holding as at the year end is 0.67% (number of shares: 457,038) {(2015: 0.67%)
8 766 1 766 822 4 653 104 – 2 280 8 1 782 633 1 964 499
(number of shares: 457,038)}. The Chief Executive Officer of Security General Insurance Company Limited is Mr. Farrukh
Aleem.
19. FIXED ASSETS
(Rupees ‘000)
2016 2015
Capital work-in-progress (civil work) 19.1 – 1 095 312
Tangible assets 19.2 2 132 747 549 027
Intangible assets (computer software) 19.3 21 645 23 355
2 154 392 1 667 694
19.1 Capital work-in-progress
Opening Balance 1 095 312 569 580
Additions 174 678 525 732
Transfer to tangible operating assets ( 1 269 990 ) –
Closing Balance – 1 095 312

109
19.2 Tangible assets (Rupees ‘000) 19.5 Disposal of tangible assets (Rupees ‘000)
Cost Accumulated Depreciation
As at As at As at Charge As at Written Depreciation Original Accumulated Book Sale Gain / (Loss) Mode of Particulars of
01 Jan 31 Dec 01 Jan for the On 31 Dec down Rate Cost Depreciation Value Proceeds on Sale Disposal Buyer
2016 Additions Disposals 2016 2016 year Disposal 2016 value %
Vehicle 850 627 223 575 352 Negotiation Abbas Hussain Employee
Lease hold land 126 505 – – 126 505 – – – – 126 505 – Vehicle 891 612 279 625 346 Negotiation Abbas Zaidi Employee
Vehicle 363 305 58 300 242 Negotiation Abid Hussain Employee
Building – 1 269 990 – 1 269 990 – 15 875 – 15 875 1 254 115 5
Vehicle 360 311 49 250 201 Negotiation Ahmed Employee
Office equipment 68 699 206 882 70 275 511 30 037 9 199 48 39 188 236 323 10 Vehicle 846 749 97 600 503 Negotiation Ammad Jamal Employee
Computers 118 776 16 640 – 135 416 70 060 17 074 – 87 134 48 282 30 Vehicle 44 22 22 10 (12) Negotiation Arif Employee
Vehicle 901 798 103 600 497 Negotiation Azeem Aslam Employee
Furniture and fixture 260 483 112 504 36 372 951 133 101 16 191 29 149 263 223 688 10 Vehicle 388 326 62 275 213 Negotiation Bilal Farooqui Employee
Vehicles 360 955 99 848 36 793 424 010 153 193 52 428 25 445 180 176 243 834 20 Vehicle 450 344 106 200 94 Negotiation Farukh Naseem Ansari Employee
2016 935 418 1 705 864 36 899 2 604 383 386 391 110 767 25 522 471 636 2 132 747 Vehicle 625 468 157 500 343 Negotiation Hafiz Baber Employee
Vehicle 1 724 1 378 346 900 554 Negotiation Hasan Amir Employee
(Rupees ‘000) Vehicle 1 450 1 066 384 1 000 616 Negotiation Faisal Tahir Employee
Cost Accumulated Depreciation Vehicle 2 102 1 130 972 1 750 778 Negotiation Kashif Azeem Employee
Vehicle 631 536 95 450 355 Negotiation Moazzam Kamal Employee
As at As at As at Charge As at Written Depreciation
01 Jan 31 Dec 01 Jan for the On 31 Dec down Rate Vehicle 363 308 55 225 170 Negotiation Ms. Nazia Shakeel Employee
2015 Additions Disposals 2015 2015 year Disposal 2015 value % Vehicle 45 18 27 18 (9) Negotiation Rizwan External party
Vehicle 850 627 223 575 352 Negotiation Nadeem Alam Ansari Employee
Lease hold land 126 505 – – 126 505 – – – – 126 505 – Vehicle 618 446 172 525 353 Negotiation Nazeer Ahmen Solangi Employee
Vehicle 676 477 199 525 326 Negotiation Osama Hassan Employee
Office equipment 60 794 8 074 169 68 699 26 305 3 825 93 30 037 38 662 10 Vehicle 742 435 307 500 193 Negotiation Parkash Lal Moolchan Employee
Vehicle 631 454 177 425 248 Negotiation Rina Ghanshamdas Employee
Computers 93 229 25 722 175 118 776 54 924 15 207 71 70 060 48 716 30 Vehicle 1 480 1 016 464 950 486 Negotiation Saulat Naqvi Employee
Furniture and fixture 245 298 15 650 465 260 483 120 453 13 050 402 133 101 127 382 10 Vehicle 1 193 798 395 700 305 Negotiation Syed Ali Raza Zaidi Employee
Vehicle 737 432 305 550 245 Negotiation Tajamal Khan Employee
Vehicles 312 497 85 220 36 762 360 955 128 821 46 788 22 416 153 193 207 762 20 Vehicle 36 31 5 7 2 Negotiation Adil Ashraf Employee
Vehicle 727 444 283 550 267 Negotiation Basharat Employee
2015 838 323 134 666 37 571 935 418 330 503 78 870 22 982 386 391 549 027
Vehicle 891 563 328 550 222 Negotiation Iram Ashbel Employee
Vehicle 810 628 182 575 393 Negotiation Khalid Maqsood Employee
Vehicle 485 342 143 375 232 Negotiation Shahid Anwar Employee
19.3 Intangible assets Vehicle 42 22 20 14 (6) Negotiation Shahzad Employee
(Rupees ‘000)
Vehicle 39 28 11 12 1 Negotiation Shoukat Employee
Cost Accumulated Amortization Vehicle 39 21 18 15 (3) Negotiation Tanveer haider Employee
As at As at As at Charge As at Written Amortization Vehicle 850 638 212 575 363 Negotiation Zahid Khan Employee
01 Jan 31 Dec 01 Jan for the On 31 Dec down Rate Vehicle 2 392 1 351 1 041 1 450 409 Negotiation Syed Ozair Abbas External party
2016 Additions Disposals 2016 2016 year Disposal 2016 value % Vehicle 382 321 61 245 184 Negotiation Ali Raza External party
Vehicle 1 430 1 111 319 985 666 Negotiation Mehboob yousuf External party
Computer Software 67 436 8 840 – 76 276 44 081 10 550 – 54 631 21 645 33 Vehicle 398 323 75 339 264 Negotiation Mehboob Ahmed External party
Vehicle 424 340 84 339 255 Negotiation Mehboob Ahmed External party
(Rupees ‘000) Vehicle 494 390 104 339 235 Negotiation Mehboob Ahmed External party
Cost Accumulated Amortization Vehicle 494 390 104 339 235 Negotiation Mehboob Ahmed External party
As at As at As at Charge As at Written Amortization Vehicle 363 299 64 339 275 Negotiation Mehboob Ahmed External party
01 Jan 31 Dec 01 Jan for the On 31 Dec down Rate Vehicle 631 531 100 500 400 Negotiation Muhammad Imran External party
2015 Additions Disposals 2015 2015 year Disposal 2015 value % Vehicle 865 624 241 500 259 Negotiation Muhammad Imran External party
Vehicle 690 436 254 500 246 Negotiation Muhammad Imran External party
Computer Software 43 231 24 205 – 67 436 37 027 7 054 – 44 081 23 355 33 Vehicle 671 451 220 507 287 Negotiation Shahid Ahmed Rabbani External party
Vehicle 688 191 497 625 128 Insurance Claim EFU General - Claim Insurance Claim
Vehicle 683 265 418 600 182 Insurance Claim EFU General Claim Insurance Claim
19.4 Depreciation has been allocated as follows: Vehicle 2 392 1 290 1 102 2 100 998 Insurance Claim EFU General Claim Insurance Claim
(Rupees ‘000)
Statutory Funds
Investment Pension Accident & Individual Group
Assets having Written down value less
Linked Conventional Business Health Family Family Aggregate Aggregate than Rs.50 000
Office equipment 70 48 22 18 (4) Various
Branch overheads 53 661 1 274 3 4 2 322 – 57 264 57 100 Furniture & Fixture 35 31 4 14 10 Various
Administration expenses 43 097 4 534 – 5 5 742 125 53 503 21 770 2016 36 899 25 522 11 377 26 118 14 741
96 758 5 808 3 9 8 064 125 110 767 78 870 2015 37 571 22 982 14 589 27 057 12 468

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20. BRANCH OVERHEADS (Rupees ‘000) (Rupees ‘000)
Statutory Funds
2016 2015
Investment Pension Accident Individual Group
Linked Conventional Business & Health Family Family Aggregate Aggregate 23.1 Auditors’ remuneration
Annual audit fee 1 500 1 400
Insurance premium 14 845 254 1 1 682 – 15 783 13 867 Half yearly review 250 220
Printing and stationery 11 320 72 – 1 1 604 – 12 997 13 934 Review of code of corporate governance 225 200
Advertisement and publicity 7 454 – – – 659 – 8 113 9 236 Other certifications 1 424 970
Postage 4 – – – 765 – 769 4 831 Out of pocket expenses 322 197
Marketing incentive 19 103 321 1 2 1 226 – 20 653 26 865 3 721 2 987
Telephone and electricity 42 915 1 063 2 3 7 478 – 51 461 46 972 23.2 None of the directors or their spouses have any interest in donees.
Rent, rates and taxes 60 308 150 3 4 12 472 – 72 937 57 637
Conveyance 14 186 7 1 1 1 149 – 15 344 10 645 23.3 The Finance Act 2008 introduced amendments to the Workers' Welfare Fund (WWF) Ordinance, 1971 whereby the
Repair and maintenance 9 153 94 – 1 1 094 – 10 342 16 247 definition of industrial establishment was extended. The amendments were challenged at various levels and conflicting
Entertainment 53 169 441 2 2 6 905 – 60 519 40 407 judgments were rendered by the Lahore High Court, Sindh High Court and Peshawar High Court. Therefore, WWF has
been recorded and paid to the Income tax department for the year from 2008 to 2014 amounted to Rs. 131.057
Depreciation 53 661 1 274 3 4 2 322 – 57 264 57 100
million. During the current year the company has reversed WWF amounting to Rs. 46.987 million which was provided
Other expenses 25 255 474 1 1 2 401 – 28 132 26 321 in the financial statements for the year 2015 but was not paid to the tax authorities.
311 373 4 150 14 20 38 757 – 354 314 324 062 The Honourable Supreme Court of Pakistan vide its judgment dated 10 November 2016, has upheld the view of Lahore
High Court and decided that WWF is not a tax and hence the amendments introduced through Finance Act 2008 are
ultra-vires to the Constitution.
21. OTHER MANAGEMENT EXPENSES (Rupees ‘000)
The Federal Board of Revenue has filed Civil Review Petitions in respect of above judgment with the prayer that the
Statutory Funds judgment dated 10 November 2016 passed in the Civil Appeal may kindly be reviewed in the interest of justice.
Investment Pension Accident Individual Group
Linked Conventional Business & Health Family Family Aggregate Aggregate
The management, as a matter of abundant caution, has decided not to record the reversal of WWF paid to the tax
Business Business (Unit Linked) Business Takaful Takaful 2016 2015 authorities till the decision of Supreme Court in respect of Civil Review Petition.
(Rupees ‘000)
Insurance premium 5 199 377 – 1 623 8 6 208 8 601
2016 2015
Telephone and electricity 23 799 2 663 – 3 3 290 75 29 830 18 415 24. TAXATION
Repair and maintenance 4 308 411 – 1 613 9 5 342 5 158
Current
Entertainment 17 728 2 626 – 2 3 895 126 24 377 30 760
– for the year 743 161 705 864
Bank charges 7 869 431 – 1 1 271 – 9 572 10 713
– prior to year 66 839 43 136
Claim investigation fees 6 035 331 – 1 868 – 7 235 5 864
– Deferred 115 200 900
Other expenses 22 807 1 722 – 1 3 570 26 28 126 63 419
925 200 749 900
87 745 8 561 – 10 14 130 244 110 690 142 930
24.1 Relationship between tax expense and accounting profit
Tax at applicable rate 31% (2015: 32%) 31.00 32.00
(Rupees ‘000)
Tax effect of income subject to lower tax rates – ( 0.48 )
Note 2016 2015 Prior year adjustment 2.39 1.93
22. OTHER REVENUE Others ( 0.33 ) 0.25
Gain on sale of fixed assets 19.5 14 741 12 468 Tax charge for the year 33.06 33.70
Interest on loan to employees 13 125 9 987
25. Remuneration of chief executive and executives
27 866 22 455 (Rupees ‘000)
23. EXPENSES NOT ATTRIBUTABLE TO STATUTORY FUNDS
Printing and stationery 2 998 570 2016 2015
Advertisement and publicity 829 447 Chief Chief
Travelling – 1 233 Executive Executives Executive Executives
Legal and professional fee – 4 003 Managerial remuneration 22 194 517 232 20 094 452 717
Workers’ welfare fund 23.3 ( 46988 ) 46 987 Bonus 6 705 43 820 5 204 33 000
Auditors’ remuneration 23.1 3 721 2 987 Retirement benefits 3 607 26 779 3 277 21 329
Donations 23.2 5 284 7 277 Utilities 404 – 460 –
Directors’ fee 25.1 600 – Medical expenses 413 6 161 257 6 271
Others 101 105 Leave passage 643 364 486 417
( 33 455 ) 63 609 33 966 594 356 29 778 513 734
Number of persons 1 142 1 127

113
The Chief Executive is provided with Company maintained cars, furnished accommodation and medical insurance cover. The 28. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
Executives are provided with Company maintained cars and in certain cases, household items and furniture in accordance
with their terms of employment. The chairman is provided with free use of company car, medical insurance cover and 28.1 Financial risk management objectives and policies
residential utilities. The Company is exposed to a variety of financial risks: market risk (comprising currency risk, interest rate risk, and other price
25.1 In addition, Five Directors were paid aggregate fee of Rs. 600,000 (2015: Nil). risk), liquidity risk and credit risk in relation to the financial statements on its balance sheet.
(Rupees ‘000) The Company's overall risk management seeks to minimize potential adverse effects on the Company's financial performance
of such risk.
2016 2015
26. BASIC AND DILUTED EARNINGS PER SHARE The Board of Directors has the overall responsibility for the establishment and oversight of the Company's risk management
framework. There are Board Committees and Management Committees for developing risk management policies and its
Profit for the year 1 872 896 1 475 470 monitoring.
28.1.1 Market Risk
(Number of Shares)
Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices, whether those
Weighted average number of ordinary shares 100 000 100 000 changes are caused by factors specific to the individual security, or its issuer, or factors affecting all securities traded in the market.
The Company is exposed to market risk with respect to its investments and with respect to products other than unit linked
(Rupees) products (where the investment risk is passed on to policyholders). The Company limits market risk by maintaining a diversified
portfolio and by continuously monitoring developments in government
(Restated) securities, equity and term finance certificates. The
Company, along with minimizing market risk by careful diversification in assets, also periodically carries out an Asset Liability
Earnings per share – basic and diluted 18.73 14.75 management exercise, to match its duration of assets and liabilities.
27. PROVIDENT FUNDS / PENSION FUNDS RELATED DISCLOSURE 28.1.1.1 Interest Rate Risk Exposure
The following information is based on un-audited financial statements of the fund as at 31 December 2016: Interest rate risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in
market interest rates. The Company invests in securities and has bank balances and deposits that are subject to interest / mark-
27.1 Provident Fund up rate risk. The Company limits interest / mark-up rate risk by monitoring changes in interest / mark-up rates in the currencies
(Rupees in ‘000) in which its cash and investments are denominated.
2016 % 2015 % The information about Company's exposure to interest rate risk (other than relating to policyholders' liabilities) based on
contractual reprising or maturity dates as of 31 December 2016 whichever is earlier is as follows:
Size of the fund - total assets 396 632 327 444
Cost of investments 297 951 75.12 270 949 82.75 (Rupees '000)
Fair value of investments 385 694 97.24 320 773 97.96 2016
Exposed to yield / interest rate risk
27.1.1 The breakup of fair value of investment in Provident Fund is as follows: Upto 1 Over 1 to 3 Over 3 to 6 Over 6 Over 1 Over 2 Over 3 Over 5 Above Non–interest
(Rupees in ‘000) month months months months to 2 to 3 to 5 to 10 10 years bearing
to 1 year years years years years Sub Total financial Total
instruments
2016 % 2015 % On balance sheet financial instruments
Assets
Open end mutual fund 146 932 38.10 112 092 34.94 Policy stamps in hand – – – – – – – – – – 4 379 4 379
Shares 1 123 0.29 1 010 0.32 Current and other accounts 2 709 366 – – – – – – – – 2 709 366 323 744 3 033 110
Deposits maturing with in 12 months 9 358 100 – – – – – – – 9 358 100 – 9 358 100
Government securities 237 639 61.61 204 806 63.85 Loans- secured to employees 1 811 3 760 5 398 9 851 15 422 18 250 11 206 10 335 4 885 80 918 – 80 918
Term Finance Certificates – – 2 865 0.89 Loans- unsecured to employees 431 910 1 209 1 989 3 177 2 235 717 326 – 10 994 – 10 994
Investments 3 514 059 1 427 817 889 867 10 185 000 13 317 000 8 331 500 10 375 260 2 645 700 – 50 686 203 38 144 980 88 831 183
Premium due but unpaid – – – – – – – – – – 92 029 92 029
27.1.2 The above investments out of provident fund have been made in accordance with the requirement of Section 227 of Amounts due from reinsurer – – – – – – – – – – 75 757 75 757
the Companies Ordinance, 1984 and the rules formulated for this purpose. Sundry Receivables – – – – – – – – – – 208 871 208 871
Investment income accrued – – – – – – – – – – 1 788 323 1 788 323
27.2 Pension Fund Advances and deposits 2 212 4 410 4 481 7 213 6 724 2 726 466 – – 28 232 123 368 151 600
(Rupees in ‘000) 15 585 979 1 436 897 900 955 10 204 053 13 342 323 8 354 711 10 387 649 2 656 361 4 885 62 873 813 40 761 451 103 635 264
2016 % 2015 %
Liability
Size of the fund - total assets 268 943 210 310 Outstanding claims – – – – – – – – – – 1 692 717 1 692 717
Premium received in advance – – – – – – – – – – 575 806 575 806
Cost of investments 216 491 80.50 178 614 84.93 Amounts due to reinsurer – – – – – – – – – – 148 023 148 023
Fair value of investments 259 584 96.52 199 870 95.04 Amounts due to agent – – – – – – – – – – 556 464 556 464
Accrued expenses – – – – – – – – – – 411 528 411 528
Unclaimed Dividend – – – – – – – – – – 22 047 22 047
27.2.1 The breakup of fair value of investment in Pension Fund is as follows:
(Rupees in ‘000) Other creditors and accruals – – – – – – – – – – 371 455 371 455
– – – – – – – – – – 3 778 040 3 778 040
2016 % 2015 % Interest risk sensitivity gap 15 585 979 1 436 897 900 955 10 204 053 13 342 323 8 354 711 10 387 649 2 656 361 4 885 62 873 813 36 983 411 99 857 224
Cumulative interest risk sensitivity gap 15 585 979 17 022 876 17 923 831 28 127 884 41 470 207 49 824 918 60 212 567 62 868 928 62 873 813
Open end mutual fund 81 903 31.55 62 937 31.49
Shares 429 0.17 354 0.17
Government securities 176 029 67.81 133 323 66.71
Term Finance Certificates 1 223 0.47 3 256 1.63

115
(Rupees '000) 28.1.2 Credit Risk
2015
Credit risk arises when one party fails to discharge its obligation and cause the other party to incur a financial loss.
Exposed to yield / interest rate risk
Concentration of credit risk arises when a number of counter parties have similar types of business activities. As a
Upto 1 Over 1 to 3 Over 3 to 6 Over 6 Over 1 Over 2 Over 3 Over 5 Above Non–interest
month months months months to 2 to 3 to 5 to 10 10 years bearing result, any change in economic, political or other conditions would affect their ability to meet their contractual
to 1 year years years years years Sub Total financial Total obligations. The Company is exposed to credit risk on premiums receivable from group clients, commission and
instruments
On balance sheet financial instruments claims recoverable from insurers and investment in term finance certificates. The management monitors exposure
Assets to credit risk through regular review of credit exposure, assessing credit worthiness of counter parties and prudent
Policy stamps in hand – – – – – – – – – – 8 545 8 545
Current and other accounts 2 440 105 – – – – – – – – 2 440 105 1 097 937 3 538 042
estimates of provision for doubtful debts. The Company believes it is not exposed to any major concentration of
Deposits maturing with in 12 months 10 860 000 – – – – – – – – 10 860 000 – 10 860 000 credit risk.
Loans- secured to employees 1 649 3 025 5 168 8 683 14 769 11 345 19 911 20 544 – 85 094 – 85 094
Loans- unsecured to employees 560 767 1 064 2 015 6 098 1 557 1 759 1 273 – 15 093 – 15 093
The credit quality of Company’s bank balances (including Term Deposit Receipts) can be assessed with reference
Investments 3 514 059 1 427 817 889 867 10 185 000 13 317 000 8 331 500 10 375 260 2 645 700 – 50 686 203 21 255 120 71 941 323 to external credit ratings as follows:
Premiums due but unpaid – – – – – – – – – – 70 254 70 254
(Rupees '000)
Amounts due from reinsurer – – – – – – – – – – 147 849 147 849
Sundry Receivables – – – – – – – – – – 136 325 136 325
Investment income accrued – – – – – – – – – – 1 969 626 1 969 626 2016 2015
Advances and deposits 2 526 4 052 5 221 7 359 7 501 1 980 1 411 144 30 194 56 784 86 978 Rating of Banks*
16 818 899 1 435 661 901 320 10 203 057 13 345 368 8 346 382 10 398 341 2 667 661 – 64 116 689 24 742 440 88 859 129 A 677 546 462 772
Liability
A– – 22 827
Outstanding claims – – – – – – – – – – 1 458 110 1 458 110 A+ 250 055 3 522 655
Premiums received in advance – – – – – – – – – – 570 463 570 463 AA 2 423 252 3 296 725
Amounts due to reinsurer – – – – – – – – – – 187 617 187 617
AA– 2 480 347 1 026 083
Amounts due to agent – – – – – – – – – – 524 163 524 163
Accrued expenses – – – – – – – – – – 322 041 322 041 AA+ 1 676 630 5 052 001
Unclaimed Dividend – – – – – – – – – – 16 870 16 870 AAA 4 883 380 1 014 979
Other creditors and accruals – – – – – – – – – – 268 719 268 719
12 391 210 14 398 042
– – – – – – – – – – 3 347 983 3 347 983
Interest risk sensitivity gap 16 818 899 1 435 661 901 320 10 203 057 13 345 368 8 346 382 10 398 341 2 667 661 – 64 116 689 21 394 457 85 511 146
*Rating of banks performed by PACRA, JCR-VIS and Standard and Poors.
Cumulative interest risk sensitivity gap 16 818 899 18 254 560 19 155 880 29 358 937 42 704 305 51 050 687 61 449 028 64 116 689 64 116 689 The credit quality of Company's exposure on TFCs can be assessed with reference to rating issued by rating agency
as follows:
The effective interest rate range (per annum) for the financial assets is as follows: (Rupees '000)
Rating
2016 2015
Issuer of TFC Rating Agency 2016 2015
Saving and other accounts 4.25% to 5.25% 5.50% to 5.75%
Deposits 4.25% to 6.45% 6.10% to 7.15% Al Baraka Bank A JCR-VIS 35 369 42 534
Loans 8% to 12.5% 8% to 12.5% Bank Alfalah Limited AA– PACRA 36 782 48 392
Investments 5.77% to 13% 4.39% to 15% Engro Chemical Pakistan Limited AA PACRA 556 393 575 743
Advances and other receivables 8% to 12.5% 8% to 12.5% Fatima Fertilizer Sukuk AA– PACRA 49 035 –
Hascol Petroleum Ltd. Sukuk AA– JCR-VIS 155 496 –
28.1.1.2 Foreign currency risk First Habib Modarba (Certificate of investment) AA+ PACRA 210 000 210 000
Foreign currency risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because K Electric AA JCR-VIS 431 402 434 638
of changes in foreign exchange rates. The Company, at present is not materially exposed to currency risk as majority NIB Bank Limited AA– PACRA 101 034 98 941
of the transactions are carried out in Pak Rupees.
Pakistan Mobile Communication (Private) Limited AA– PACRA – 24 402
28.1.1.3 Other Price Risk 1 575 511 1 434 650
Other price risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of
Investment in Government securities are not exposed to any credit risk.
changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes
are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial The management monitors exposure to credit risk in premium receivable from group clients through regular review of
instruments traded in the market. credit exposure and prudent estimates of provision for doubtful debts. As of 31 December 2016 there was no provision
for doubtful premiums as all the premiums receivable were considered good.
28.1.1.4 Equity Price Risk
The Company’s listed securities are susceptible to market price risk arising from uncertainties about the future value
of investment securities. The Company limits market risk by maintaining a diversified portfolio. In addition, the
Company actively monitors the key factors that affect stock market. In the equity portfolio, the top three sectors
by exposure are Oil and Gas, Banks and Chemicals.

117
28.1.3 Capital risk managements (Rupees '000)
The Company’s objective when managing capital is to safe guard the Company’s ability to continue as a going concern 2015
Fair value
so that it can continue to provide returns for shareholders and benefits for other stakeholders; and to maintain a strong
capital base to support the sustained development its businesses. The Company manages its capital structure by monitoring Note Available for HFT HTM Loans and Other Other Total Level 1 Level 2 Level 3 Total
Sale Receivables financial financial
return on net assets and makes adjustments to it in the light of changes in economic conditions. In order to maintain assets liabilities
or adjust the capital structure, the Company may adjust the amount of dividend paid to shareholders or issue new shares. On balance sheet financial instruments
Financial assets measured at fair value
Currently the Company has a paid up capital of Rs. 1.0 billion against the minimum required paid-up capital of Rs. 500 - Investments
million set by the SECP for the life insurance companies for the year ended 31 December 2016. Government Securities (Tbills + PIBs + Sukuks) 46 329 767 – – – – – 46 329 767 – 46 329 767 – 46 329 767
Sukuk Bonds (other than government) 1 010 381 – – – – – 1 010 381 1 010 381 – – 1 010 381
In addition, the Company is also required to maintain minimum solvency in accordance with the rules and regulations Listed equity securities 19 756 346 451 369 – – – – 20 207 715 20 207 715 – – 20 207 715
set by the SECP, which are fully met by the Company. Unlisted equity securities 508 – – – – – 508 – – 508 508
Units of mutual funds 166 915 – – – – – 166 915 166 915 – – 166 915
Debt securities (Listed TFCs) 214 269 – – – – – 214 269 214 269 – – 214 269
28.1.4 Fair value
Financial assets not measured at fair value
Investments on the balance sheet are carried at fair value except for investments in non unit-linked funds which are stated - Government Securities (Tbills + PIBs + Sukuks) – – 2 921 786 – – – 2 921 786 – 3 023 764 – 3 023 764
at lower of cost or market value and unquoted investments which are stated at cost. The Company is of the view that - Balances with banks * 28.1.4.1 14 398 042 – – – – – 14 398 042 – – – –
the fair value of the remaining financial assets and liabilities are not significantly different from their carrying values since - Certificate of Investment 28.1.4.1 210 000 – – – – – 210 000 – – – –
assets and liabilities are essentially short term in nature. - Advances 28.1.4.1 – – – 100 187 1 964 499 – 2 064 686 – – – –
- Listed equity securities and mutual fund
units (at lower of cost or market value) 879 982 – – – – – 879 982 1 478 475 – – 1 478 475
The Company’s accounting policy on fair value measurements of its investments is discussed in note 5.1.5 to these financial - Other assets (excluding markup accrued)* 28.1.4.1 – – – – 503 485 – 503 485 – – – –
statements. 82 966 210 451 369 2 921 786 100 187 2 467 984 – 88 907 536 23 077 755 49 353 531 508 72 431 794
The Company measures fair values using the following fair value hierarchy that reflects the significance of the inputs used Financial liabilities not measured at fair value
- Other liabilities (excluding Liabilities against
in making the measurements: assets subject to finance lease) * 28.1.4.1 – 2 777 520 2 777 520 – – – –
– – – – – 2 777 520 2 777 520 – – – –
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities. 82 966 210 451 369 2 921 786 100 187 2 467 984 (2 777 520) 86 130 016 23 077 755 49 353 531 508 72 431 794
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). 28.1.4.1 The Company has not disclosed the fair values for these financial assets and liabilities, as these are for short term or reprice
Level 3: Fair value measurements using inputs for the asset or liability that are not based on observable market data (i.e. over short term. Therefore their carrying amounts are reasonable approximation of fair value.
unobservable inputs).
29. INSURANCE RISK
The table below analyses financial instruments measured at the end of the reporting period by the level in the fair value
hierarchy into which the fair value measurement is categorized: 29.1 Insurance contracts and Takaful contracts
29.1.1 Classification
(Rupees '000)
The Company currently issues contracts that are classified as insurance and takaful contracts as they transfer significant
2016
insurance risk (against death, disability and sickness) from the policyholder to the Company. In the past the Company
Fair value
has issued contracts where the insurance risk transferred is insignificant, these therefore being classified as investment
Note Available for HFT HTM Loans and Other Other Total Level 1 Level 2 Level 3 Total
Sale Receivables financial financial contracts. All contracts which include an investment element being unit-linked contracts linked to internal mutual funds.
assets liabilities
On balance sheet financial instruments The Company classifies its business into Individual Life and Group Life businesses, in both cases the form of contract
Financial assets measured at fair value consisting of main plans and supplementary riders (which are generally optional).
- Investments
Government Securities (Tbills + PIBs + Sukuks) 45 404 994 – – – – – 45 404 994 – 45 404 994 – 45 404 994 Individual life business mainly consists of unit linked products and conventional protection products, in both cases with
Sukuk Bonds (other than government) 1 192 326 – – – – – 1 192 326 1 192 326 – – 1 192 326 optional supplementary riders which generally provide protection only. Group Life business consists primarily of protection
Listed equity securities 36 230 825 459 246 – – – – 36 690 071 36 690 071 – – 36 690 071 products and a relatively small number of unit-linked policies.
Unlisted equity securities 508 – – – – – 508 – – 508 508
Units of mutual funds 511 783 – – – – – 511 783 – 511 783 – 511 783 29.1.2 Contract details and measurement
Debt securities (Listed TFCs) 173 185 – – – – – 173 185 173 185 – – 173 185
Financial assets not measured at fair value The insurance contracts offered by the Company are described below.
- Government Securities (Tbills + PIBs + Sukuks) – – 3 465 074 – – – 3 465 074 – 3 492 212 – 3 492 212
- Balances with banks * 28.1.4.1 12 391 210 – – – – – 12 391 210 – – – – 29.1.2.1 Individual Life Policies
- Certificate of Investment 28.1.4.1 210 000 – – – – – 210 000 – – – –
- Advances 28.1.4.1 – – – 91 912 1 782 633 – 1 874 545 – – – – These consist of the following types of policies:
- Listed equity securities and mutual fund units
(at lower of cost or market value) 1 183 242 – – – – – 1 183 242 1 995 995 – – 1 995 995 (a) Unit Linked Products:
- Other assets (excluding markup accrued)* 28.1.4.1 – – – – 2 162 060 – 2 162 060 – – – –
97 298 073 459 246 3 465 074 91 912 3 944 693 – 105 258 998 40 051 577 49 408 989 508 89 461 074 These are medium to long term unit-linked plans designed to address a variety of future policyholder needs, such as
Financial liabilities not measured at fair value
retirement planning, education planning for children, marriage planning for children, life protection and investments and
- Other liabilities (excluding Liabilities against savings for future. Premiums received from policyholders and after deduction of specified charges including risk charges,
assets subject to finance lease) * 28.1.4.1 – – – – – 3 202 234 3 202 234 – – – – are invested in internal unit funds of the Company The basic plan contains life cover over and above the unit value, with
– – – – – 3 202 234 3 202 234 – – – – additional protection (for death, disability and sickness) being provided through the addition of optional riders.
97 298 073 459 246 3 465 074 91 912 3 944 693 (3 202 234) 102 056 764 40 051 577 49 408 989 508 89 461 074

119
Policyholder liabilities for these plans (excluding attached riders) are measured as the sum of the fair value of units attached – customers of financial institutions, the contracts being issued to financial institutions to protect their customers’
and the unearned part of any risk premiums charged. outstanding loan balances, such as on personal loan, mortgages and credit cards.
(b) Conventional Protection Products: Unit-Linked Group Life policies are similar in nature to Individual-Life unit-linked products.
Two types of products are offered under Individual life conventional business, these being medium to long term contracts (b) Policyholder Liabilities:
with level premiums being paid over the policy period. The Company offers a standard term life assurance product that
offers protection in event of death as well as a decreasing term life assurance policy that covers outstanding loan balances. Policyholder liabilities consist of the following components:
Policyholder liabilities for both products are determined on a net premium basis by determining the present value of – Net Unearned Premium Reserve
benefits less the present value of future net premiums, a theoretical net premium being calculated using conservative The unearned premium reserve is the portion of premium that had been booked in the current period but pertains to a
assumptions for mortality and the discount rate. period that extends beyond the valuation date. The fraction of premium that is to be consumed in the succeeding period
is considered to be unearned. The unearned premium is the aggregate for both posted and fluctuations in the unearned
(c) Individual Family Takaful Products:
premium.
These are medium to long term unit-linked plans operated through Window Takaful Operations of EFU Life Assurance.
The unearned premium reserve is computed both gross and net of reinsurance, the methodology used for both being
The Member liabilities are divided into two broad categories, unit reserves and non-unit reserves. The unit reserve comprises similar.
of the total units allocated to the Membership in the Participants’ Investment Fund (PIF). The value of these units, at the
– Unit-Link Group Life Policies
bid price prevailing on the valuation date, forms the unit reserve. The non-unit reserve is the actuarial reserve in the
Participants’ Takaful Fund (PTF). The net non-unit reserve is calculated as the unearned mortality reserve which is calculated Policyholder Liabilities for these policies are measured as the sum of the fair value of units attached and the unearned
as the unexpired portion of the net mortality charges (Net of Wakala Fee and Retakaful Contribution) deposited into the part of any risk premiums charged.
PTF. The gross non unit reserve is calculated as the net reserve plus the unearned retakaful contribution paid.
– Profit Commission Reserve (accrued for policyholders)
(d) Accident and Health Products:
This is the total accrued profit commission that is payable to policy holders at a future date. Profit commission for any
These consist of long term and short term Accident and Health products providing cover against accidental death, disability, policy normally becomes payable at the end of three policy years. However, accrued profit commission is calculated at
sickness and critical illness, offered both as long term as well as yearly renewable plans. the end of each policy year to account for the liability that has been created for that year. The sum of all such accrued
profit commissions for all schemes is the Profit Commission reserve.
Policyholder liabilities for short term contracts are evaluated using the unearned premium reserve method, taking into
account the unexpired future period of risk, with a premium deficiency reserve being provided for where the Company’s – Profit Commission Reserve (accrued from re-insurer)
management perceives that the premium being charged is not adequate. For the critical illness long-term contracts, This is the total profit commission due from re-insurer on all reinsured schemes. Profit commission rates are applied on
liabilities are evaluated using a net premium method i.e. expected present value of benefits payable less expected present insured groups, based on their size. The total profit commission accrued from re-insurer is the sum of profit commissions
value of net premiums receivable. for each group.
(e) Other Supplementary Benefits: – Premium Deficiency Reserve
The Company also offers a variety of supplementary benefits attached with main plans including additional term life The need for premium deficiency reserve arises when the Company expects to incur claims in excess of reserves set aside
assurance, income benefits, critical illness, sickness and accidental death and disability related benefits. using conventional methods. The Company analyzed its current portfolio of group contracts and evaluated loss ratios
The methods used to determine policyholder liabilities differ with the nature and terms of these benefits. Most supplementary of group business. The Company does not expect excessive claims on any schemes and hence no provision for Premium
benefits related to death and critical illness, are identical to some main plans offered in individual life business, the valuation Deficiency Reserve is set aside.
methods used for these being consistent with their related main plans. Measurement of liabilities for benefits related to – Incurred But Not Reported (IBNR) Reserve
accident disability, accidental death and sickness are based on unearned premium method.
The IBNR (incurred but not reported) reserve is an estimate of those claims that might have occurred but not yet reported.
(f) Reserve for Outstanding Losses (Individual life) This is estimated by using the claim intimation lag from the date of death for the claims that have been reported in the
last two years. The system generated IBNR triangle report is used to calculate the ratio of delay to estimate the probable
The Company records reported losses as payable upon intimation of any claim. Unpaid claims are assessed from time to
claims pertaining to and not reported up to the valuation date.
time 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. 29.1.3 Liability Adequacy Test
Liability adequacy test is applied to all long term contracts where necessary, especially those products where actuarial
The Company also provides, as part of policyholder liabilities, a reserve for incurred but not reported claims (IBNR). Due liability estimation is based on conservative assumptions. Liability adequacy test is carried out using current best estimates
to insufficient claim history of Individual life business, however, the general lag method for IBNR is not used. The Company of assumptions and future net cash flows, including premiums receivable, benefits payable and investment income from
adopts a methodology based on best estimates of future incurred but not reported claims, as suggested by the appointed related assets.
actuary of the Company.
To determine the adequacy of liabilities, assumptions must be based on realistic best estimates. At the moment, the
29.1.2.2 Group Life and Group Takaful Policies Company does not have sufficient mortality data for comparison with assumed life table EFU (61-66). The Company
(a) Nature of Contracts: compares efu(61-66) with recent mortality studies carried out in South East Asia region. The comparison suggests that
current actual mortality experience is better than the experience reflected in efu(61-66). Thus the Company uses a modified
The Company’s group life and group takaful business consists of one year term life contracts which provide coverage, version of efu(61-66) as a best estimate of mortality for liability adequacy test.
in the event of death or disability, to:
The investment return currently assumed for valuation is 3.75% p.a. This assumption reflects a long-term conservative
– employees of a common employer, benefits payable under these contracts being either fixed, in case of death, or return that the Company expects to earn on assets backing these liabilities. On a more realistic view of current financial
linked to the extent of loss incurred by the policyholder, in case of disability; markets, the Company estimates that a long term return on these assets of 6% is reasonable. Liabilities are re-evaluated
at investment return assumption of 6% for Liability Adequacy Test.

121
The table below compares total policyholder liabilities under existing valuation basis with policyholder liabilities calculated In absence of credible disability and critical illness incidence rates, the Company uses reinsurance rates for actuarial liability
using best estimate assumptions: valuation of disability and critical illness benefits.
29.3.2 Investment income

Policyholder Policyholder liabilities Investment income is an important assumption for valuation of long-term conventional plans. This is the rate at which
liabilities on existing using best estimate future expected benefits and expected premiums are discounted. Currently, the valuation assumption used for investment
valuation basis assumptions income is 3.75% p.a.
Assumption Sensitivity test with respect to investment income is carried out and its impact on policyholder liabilities observed. When
investment rate is increased by 10%, policyholder liabilities decrease by 0.002%. Likewise, when investment income rate
Mortality 95 869 249 95 712 972 is decreased by 10%, policyholder liabilities increase by 0.002%.
Investment returns 95 869 249 95 856 719
29.4 Frequency and Severity of claims
The liabilities evaluated under these assumptions suggest that recognized liabilities are adequate and no further provision Frequency and severity can have a significant impact on total claims paid out by the Company. High frequency of claims
is required. could occur due to adverse experience of mortality or disability. Adverse mortality experience, in short-term, could be
due to a wide-range spread of fatal contagious disease, an epidemic. Over a longer term, overall health practices, eating
29.2 Reinsurance / Retakaful contracts held: and living habits could potentially have an adverse effect on mortality.
The Company has entered into reinsurance/retakaful (hereinafter referred to as “reinsurance”) arrangements, for both About 90% of Company’s business is concentrated in the provinces of Sind and Punjab. This concentration is largely in
its individual and group businesses, in order to manage risks associated with the frequency and severity of claims. These line with the population of these provinces relative to country’s total population. The Company’s diversified portfolio of
arrangements include cover under treaties as well as on a facultative basis. The terms of reinsurance treaties vary by type contracts helps limit the frequency and severity of claims. However, in event of large number of deaths or disabilities,
of business, the objective being to maintain a reasonable risk profile suiting the risk appetite and overall exposure to Company does face the risk of paying out excessive claims. To manage and mitigate this exposure, arrangements in form
adverse movements in mortality or morbidity. of reinsurance and catastrophe cover are in place.
Primarily, reinsurance assets are amounts due from reinsurers with respect to recoveries under claims and profit commission. In Group life business, frequency and severity of claims can be affected by concentration of business in a specifically risky
Reinsurance recoveries are measured according to the terms and conditions of the reinsurance contracts class of industry. Claim frequency can rise substantially from businesses in industries that are more prone to accidents
Reinsurance liabilities consist of amounts due to reinsurers on account of reinsurance premiums due which are measured due to the nature of work they perform. Likewise, severity of claims can also be associated with business concentration
accounting to the terms of the arrangements. in a specific class of industry. The Company continually monitors its concentration risk and takes measures to keep its
business portfolio well diversified.
The details related to reinsurance assets and liabilities are shown below:
Contracts in group life, are mainly one year term life contracts, where premium rates are generally guaranteed for one
year only. The Company retains the right of changing premium rates by incorporating the claim experience of a group
insured, thereby allowing the Company to charge a specific group in line with its claim experience.
Amounts due Amounts due
Reinsurer rating from reinsurers to reinsurers The Company regularly carries out an exercise to monitor time lags between intimation and settlement claim dates. The
study reveals that a significant portion of claims are settled within twelve months of claim intimation.
'A' or above 75 757 148 023
29.5 Sources of uncertainty in estimation of future benefit payments and premium receipts
The Company assesses impairment on its reinsurance assets on a regular basis to identify any losses in recoveries. As of
now, Company’s all reinsurance assets are due from reinsurers with a credit rating of “A or Above”. The reinsurers The uncertainty with respect to future premiums and benefits may arise due to unexpected changes in mortality or
maintain a sound credit history and hence no impairment provision is required for now. disability experience. Adverse mortality experience will result in excess benefit payments, and reduced future premium
income.
29.3 Accounting estimates and judgments Likewise, unexpected changes in surrenders and lapses could also have a significant impact on future realized premiums.
The Company makes several estimates of assumptions to evaluate its assets and liabilities reported in its financial statements. Estimates of lapses and surrenders are based on internal experience studies carried out annually. Factors that could affect
On the liability side, there are a number of factors that have a direct impact on policyholder liabilities. Assumptions are policyholder behavior include market factors such as interest rates, policyholder preferences in terms of the monetary
continually evaluated using internal analysis and monitoring processes to test validity of these assumptions. value that a policyholder relates with the insurance policy, the frequency of premium payments and the age of the
individual.
29.3.1 Mortality, Disability and Critical Illness
Mortality and disability rates are basic assumptions used in valuation of policyholder liabilities. For mortality, life table 29.6 Process used to decide on assumptions
efu(61-66) is being currently used. The life table was published more than 40 years ago and may not reflect mortality Assumptions used to determine policyholder liabilities include, mortality/disability/critical illness rates, investment returns
improvements. In absence of any updated mortality study of Pakistan’s insured population, EFU (61-66) is used with some for conventional business, investment returns for investment linked business, expenses and mortality loading.
adjustment to reflect current mortality trends. 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 Mortality assumptions should in principle reflect adequate conservatism in liabilities. The Company considers efu(61-66)
purposes is appropriate to ensure prudence. life table to be appropriate for actuarial valuation of policyholder liabilities.
Sudden adverse experience in mortality might occur due to epidemics, causing deaths on a mass scale due to incurable Disability and Critical illness rates used for liability valuation are the reinsurance rates provided by the reinsurer. Due to
contagious illnesses. Mortality may also deteriorate over a period of time, due to wide-scale changes in living life styles, lack of sufficient claim experience for these disabilities and critical illnesses, the Company considers this as the best estimate
eating and health habits. available.
Sensitivity test with respect to mortality is carried out and impact on policyholder liabilities is observed. When mortality The Company uses an investment return assumption of 3.75% per annum to evaluate actuarial liabilities of its conventional
rates increase by 10%, policyholder liabilities increase by 0.056%. Likewise, when mortality rates decrease by 10%, plans. Liabilities of conventional products should in principle reflect a long term conservative interest rate, to reflect
policyholder liabilities decrease by -0.056%. adequate conservatism. An investment return of 3.75% per annum is hence considered appropriate.

123
For Unit Linked products where the death benefit is paid in form of annuity, the Company uses a discount rate of 6% The Company also manages its geographical concentration of risk. Currently the Company’s geographical concentration
to evaluate present value of future stream of cash flows. In principle, the interest rate assumption set to discount cash of risk for its Individual Life sales force business is as follows:
flows 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. Conventional business:
Diversification of Risk Portfolio
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. Before After
Resinsurance Reinsurance
Since from Annual 2014 onwards the Company shall maintain 100% retention on its books on account of Solvency Azad Kashmir 2.19% 2.81%
Margin, the Company will no longer keep an extra reserve on account of mortality fluctuation. It is the opinion of Baluchistan 4.94% 6.23%
Company’s management and appointed actuary that this assumption is prudent.
Gilgit Baltistan 0.89% 1.22%
The Company reserves for any increase in actuarial liability resulting from the possible reinstatement of lapsed policies. Khyber Pakhtunkhwa 2.57% 3.05%
The current liability valuation also takes into account cash value of units pertaining to policies lapsed in last 2 years. A Punjab 44.26% 44.40%
unit-linked policy lapses when the second annual premium of policy is not received. In principle, cash value of a lapsed Sindh 45.15% 42.28%
policy 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 periodic Individual Family Takaful business:
studies to determine expected renewals. In opinion of the Company’s management and appointed actuary assumptions Diversification of Risk Portfolio
used to set aside a liability against these lapsed policies is prudent.
Before After
For the purpose of liability adequacy tests the Company makes assumptions relating to expenses. For this purpose regular Resinsurance Reinsurance
expense analyses are carried out based on actual expenses and transaction volumes. Azad Kashmir 1.98% 1.21%
Baluchistan 1.45% 1.83%
29.7 Sensitivity Analysis
Gilgit Baltistan 0.06% 0.18%
The basic assumptions used in valuation of liabilities are mortality, disability, critical illness rates and investment returns Khyber Pakhtunkhwa 3.82% 6.33%
assumed in discounting future cash flows. The table below presents sensitivity results with respect to above mentioned
factors, with their impact observed on policyholder liabilities: Punjab 43.62% 49.53%
Sindh 49.07% 40.91%
% change in % change in
For Group Life business, the Company’s geographical concentration of risk is as follows:
Sensitivity variable sensitivity variable policyholder liabilities
Conventional business:
Worsening of mortality and critical illness rates 10% 0.056%
Diversification of Risk Portfolio
Improvement in mortality and critical illness rates 10% -0.056%
Before After
Increase in investment returns 10% -0.002% Resinsurance Reinsurance
Decrease in investment returns 10% 0.002%
Sindh 56.05% 57.51%
29.8 Management of insurance, financial and other risks Punjab 43.95% 42.49%
29.8.1 Insurance Risk Group Family Takaful business:

The risk that Company faces is due to randomness in occurrence of insured events. In principle, the Company faces the Diversification of Risk Portfolio
risk that total claims exceed the reserves set aside at any point in time. Before After
Resinsurance Reinsurance
The occurrence of any single claim and amount paid on a single claim is a random event. However, as the number of
contracts and independent lives increase, the estimated claim amounts and the number of claims get closer to the actual Sindh 91.05% 90.95%
figures. This phenomenon is observed when pool of contracts is large enough and lives are independent. To manage this Punjab 8.95% 9.05%
risk, Company monitors its concentration risk, on several parameters, and maintains diversity in its portfolio of insurance
contracts. The Company also has reinsurance arrangements with its reinsurance partners, to whom the Company passes any excess
In order to maintain this diversification, the Company takes a number of steps to manage the overall insurance risk of insurance risk beyond its retention levels. Limits are continually monitored and kept in line with the overall risk tolerance.
its portfolio of insurance contracts. The risk of an individual life is broadly assessed in light of its: medical condition, which This allows the Company to retain the risk according to its risk capacity and minimizes excessive claim payouts. Currently,
include living habits, physical health and medical history; occupational condition, which assesses an individual’s job profile the total risk retained on individual life products is Rs. 1,200,000 per life for the death risk, Rs. 500,000 for individual
and whether any characteristics of the job could have a significant impact on that individuals mortality; financial condition, takaful policies and Rs. 600,000 for risks associated with critical illness plans. For Group Life, the Company currently
which determines the individuals ability and affordability to purchase and maintain an insurance contract over the long- retains Rs. 1,200,000 of total life risk on each life and Rs. 500,000 for Group Family Takaful business. For critical life cover,
term. Rs. 50,000 per life is retained for both, Group Life and Group Family Takaful business.
The Company identifies and defines parameters in its underwriting strategy to clearly identify individuals (sub-standard The Company also has arrangements for claims in event of a catastrophic scenario under an Excess of Loss Catastrophe
lives) which could potentially increase the overall risk of insurance portfolio. Based on certain parameters, such individuals cover which is triggered in event of excessive claims, limiting total amount of claims paid out if such an event occurs.
pay an extra charge called Extra Mortality Premium, in order to compensate for extra risk added to existing pool of insured
individuals. These measures allow the Company to charge an individual life in line with the risk contributed to its insurance
portfolio. These underwriting measures also discourage accumulation of sub-standard lives in the insured pool, thereby
managing the overall insurance risk of Company in the long-term.

125
29.8.2 Other risks 29.8.7 Liquidity risk
The Company faces a number of financial risks in its assets and liabilities, apart from insurance risk. These risks can be Liquidity risk is the risk that the Company is unable to meet its funding requirements, without incurring a material loss
broadly categorized as expense risk, lapse risk, market risk, credit risk and liquidity risk. This section describes these risks in disposing off its illiquid assets. To guard against this risk, the company maintains a healthy balance of cash and cash
on the Company level and identifies and describes the processes and strategy of management to manage these risks. equivalents and readily marketable securities. Liquidity is monitored regularly and assets are frequently rebalanced to
maintain a certain level of liquidity at all times. Going forward, the company also plans to set up a contingency plan,
29.8.3 Expense risk 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 risk that the Company faces is that future expenses may be higher than those used in pricing of products causing
an expense overrun. The company mitigates this risk by incorporating a certain level of acceptable conservatism in building The expected payouts in liabilities along with maturity profile of assets and liabilities are monitored to ensure that adequate
future policy expense factors in pricing and expects to maintain its actual expenses within these limits. Regular monitoring liquidity is maintained within the Company, to avoid the need of liquidating assets below their actual market value.
of expenses allows the Company to adjust its pricing in time to account for higher than expected expenses.
The following extract, classifies the assets and liabilities of the Company by type of product in each Statutory Fund as at
The Company closely monitors its expenses by regularly carrying out an expense analysis for its business. The assumptions 31 December 2016. The table below also presents details of assets under Shareholder’s Fund:
for future policy expense levels are determined from the Company’s most recent annual expense analysis, with an extra
margin built-in to account for variability in future expenses. A review of product pricing is carried out each year based
on the latest available expense factors. Constant monitoring of expenses enables the Company to take corrective actions (Rupees ‘000)
Investment Linked Conventional
in time.
Products (All unit Products
Based on the results of expense analysis, the Company apportions its management expenses to different lines of business. main linked plans) (Individual, Group Shareholders’
2016 Life, Riders) Fund Total
29.8.4 Lapse risk
Available for sale:
The risk the Company faces is that future persistency rates may be lower than assumed in pricing, thus impacting the - Government securities 45 404 994 – – 45 404 994
emergence of profit from its portfolio of individual life policies. The Company however is confident that this risk is
insignificant as the company places tremendous emphasis on quality customer services and retention of clients by making - Other fixed income securities 1 575 511 – – 1 575 511
persistency standard an integral part of the sales force culture. The Company has been consistently maintaining good Held to maturity:
levels of persistency and will continue a similar trend in future.
- Government securities 264 358 1 626 069 1 574 647 3 465 074
The Company has robust systems in place to regularly monitor the lapse experience. Regular focus on persistency is - Other fixed income securities – – – –
embedded in the Company culture and is an integral part of the monitoring of the sales force performance and Available for sale:
remuneration.
- Listed equities and mutual funds 37 283 438 106 104 995 554 38 385 096
29.8.5 Market risk - Unlisted equities and mutual funds – – 508 508
Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices, whether Loans and receivables: – – 91 912 91 912
those changes are caused by factors specific to the individual security, or its issuer, or factors affecting all securities traded - Insurance receivables – 92 029 – 92 029
in the market. The Company is exposed to market risk in relation to its investments with respect to products other than
Reinsurance assets 17 008 58 749 – 75 757
unit linked products (in unit linked products, investment risk is borne by the policyholder). The Company limits market
risk by maintaining a diversified portfolio and by continuously monitoring developments in government securities, equity Cash and cash equivalents 11 840 110 214 149 341 330 12 395 589
and term finance certificates. The company, along with minimizing market risk by careful diversification in assets, also Other assets 3 438 455 17 488 1 359 118 4 815 061
periodically carries out an Asset Liability management exercise, to match its duration of assets and liabilities. Total assets 99 823 874 2 114 588 4 363 069 106 301 531
29.8.6 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. The
Company is exposed to credit risk on premiums receivable from group clients, commission and claims recoverable from
insurers and investment in term finance certificates. The management monitors exposure to credit risk through regular
review of credit exposure, assessing credit worthiness of counter parties and prudent estimates of provision for doubtful
debts. The Company believes it is not exposed to any major concentration of credit risk.

127
(Rupees ‘000) 33. WINDOW TAKAFUL OPERATIONS
Investment Linked Conventional
Products (All unit Products The Statement of financial position of Window Takaful Operations as at 31 December 2016 and its financial performance
main linked plans) (Individual, Group Shareholders’ for the year ended 31 December 2016 are as follows:
2016 Life, Riders) Fund Total
33.1 Balance Sheet (Rupees ‘000)
Long-term insurance:
Fixed term 55 996 716 291 536 – 56 288 252 Statutory Funds
Whole of life 38 596 622 – – 38 596 622 Individual Group
Short-term insurance contracts – 667 093 – 667 093 Note Shareholders’ Family Family Aggregate Aggregate
Riders – 320 048 – 320 048 Funds Takaful Takaful 2016 2015
Share capital and reserves
Retained earnings on other 1 525 081 380 043 – 1 905 124
Equity – – 4 193 383 4 193 383 Operator's Fund 50 000 – – 50 000 50 000
Accumulated deficit – – – – ( 82 178 )
Other liabilities 3 705 455 455 868 169 686 4 331 009
Net shareholders' equity 50 000 – – 50 000 ( 32 178 )
Total liabilities 99 823 874 2 114 588 4 363 069 106 301 531
Balance of statutory fund [including policyholders'
30. SEGMENT REPORTING liabilities Rs. 1315.68 million (2015: Rs. 65.270 million)
Class of Business wise assets, liabilities and operating results have been disclosed in the Balance sheet and Profit and Loss
account and revenue account prepared in accordance with the requirements of Insurance Ordinance 2000, the SEC Participant Investment Fund 30 244 1 287 106 – 1 317 350 72 221
(Insurance) Rules, 2002 and Takaful Rules, 2012. Participant Takaful Fund - Waqf – 38 515 13 252 51 767 11 276
Cede Money - Waqf – 2 000 – 2 000 2 000
31. NUMBER OF EMPLOYEES Shareholder's Fund unit holding in PIF – 5 690 – 5 690 5 127
2016 2015 30 244 1 333 311 13 252 1 376 807 90 624
Creditors and accruals
Number of employees as at 31 December 1 547 1 386
Outstanding Claims 12 – 6 028 3 331 9 359 2 832
Average number of employees as at 31 December 1 466 1 329
Contribution received in advance – 20 538 2 027 22 565 8 943
32. RELATED PARTY TRANSACTIONS Amounts due to retakaful – 14 696 11 759 26 455 8 707
Amounts due to agents – 73 631 239 73 870 30 082
The related parties comprise of directors, key management personnel, associated undertakings, and entities with common
Accrued expenses 12 418 – – 12 418 882
directors and retirement benefit fund. The transactions with related parties, other than those disclosed elsewhere in these
Other creditors and accruals 97 568 138 561 39 094 275 223 49 392
financial statements and remuneration of key management personnel (disclosed in note 25) are as follows:
Interfund payable 58 671 – – 58 671 –
(Rupees ‘000) Total liabilities 168 657 253 454 56 450 478 561 100 838
Total equity and liabilities 248 901 1 586 765 69 702 1 905 368 159 284
Associated companies (due to common directorship) 2016 2015
Transactions Cash and bank deposits
Premium written 63 790 41 875 Policy stamps in hand 19 – – 19 18
Premium paid 41 838 34 033 Current and other accounts 66 423 363 922 26 396 456 741 113 074
Claims paid 30 081 9 009 Deposits maturing within 12 months 28 000 480 000 – 508 000 10 000
Claims received 4 994 6 490 94 442 843 922 26 396 964 760 123 092
Commission paid 75 954 81 452
Dividend paid 631 070 576 524
Dividend received 89 957 88 357 Investments 17
Interest on banks deposit 179 126 92 537
Government securities – 143 336 2 500 145 836 5 000
Bonus Shares Received 411 508 –
Redemption on Mutual Funds 204 064 208 523 Listed Equities & Mutual Funds – 460 252 – 460 252 3 341
Balances – 603 588 2 500 606 088 8 341
Bank balances 30 906 249 899 Current assets - others
Bank deposits 2150 000 2150 000 Prepayments 5 450 – – 5 450 3 092
Premium payable 49 413 Contributions due but unpaid – – 1 712 1 712 352
Premium receivable 5 197 388 Amount due from retakaful – – – – 2 056
Investment in EFU General Insurance Company Limited 1 486 093 1132 622 Sundry receivables 63 825 89 384 28 019 181 228 16 783
Investment in related party 238 310 328 033 Investment income accrued 13 2 273 2 2 288 73
Key management personnel transactions Shareholder's Fund unit holding in PIF 5 690 – – 5 690 5 127
Loan to employees – 35 869 Capital Contribution 78 579 – – 78 579 –
Loan recovered 5 425 1 250 Income Tax Assets – – – – 268
Balances Advances and deposits 902 – – 902 100
Loan Receivable 29 944 35 369 Interfund Receivable – 47 598 11 073 58 671 –
Employees’ funds Transactions 154 459 139 255 40 806 334 520 27 851
Contribution to provident fund 22 468 20 387 Total assets 248 901 1 586 765 69 702 1 905 368 159 284
Contribution to pension fund 18 415 16 338

129
33.2.3 Shareholders’ Sub-Fund (Rupees ‘000)
33.2 Revenue Account
(Rupees ‘000)
Statutory Funds
Statutory Funds
Individual Group
Individual Group Family Family Aggregate Aggregate
Family Family Aggregate Aggregate Takaful Takaful 2016 2015
Takaful Takaful 2016 2015 Income
Un-allocated contribution 474 456 – 474 456 171 930
33.2.1 Participants' Investment Fund (PIF) Net investment income 2 587 – 2 587 2 056
Wakalat-ul-Istismar - PIF 87 240 – 87 240 7 303
Income Wakala Fee - PTF 18 447 13 902 32 349 8 654
Allocated contribution 1 292 346 – 1 292 346 64 767 Total net income 582 730 13 902 596 632 189 943
Policy Transfer to other statutory Fund 2 332 – 2 332 – Less: Expenditure
Net investment income 109 782 – 109 782 767
Acquisition costs 548 800 7 371 556 171 201 075
Total net income 1 404 460 – 1 404 460 65 534
Administration expenses 112 776 2 987 115 763 54 756
661 576 10 358 671 934 255 831
Less: Claims and Expenditure
Wakalat-ul-Istismar 87 240 – 87 240 7 303
(Shortfall) / Excess of income over expenditure ( 78 846 ) 3 544 ( 75 302 ) ( 65 888 )
Surrender 86 045 – 86 045 2 300
173 285 – 173 285 9 603 Add : Technical reserves at the beginning of the period – – – –
Less : Technical reserves at the end of the period – – – –
Excess of income over claims and expenditure 1 231 175 – 1 231 175 55 931 – – – –
(Deficit) / surplus transferred to shareholders' fund – – – ( 82 178 )
Add : Technical reserves at the beginning of the period 55 931 – 55 931 –
Less : Technical reserves at the end of the period 1 287 106 – 1 287 106 55 931 Movement in technical reserves – – – –
Balance of shareholders' sub fund at beginning of the period – – – –
( 1 231 175 ) – ( 1 231 175 ) ( 55 931 )
Capital Contribution 85 449 3 807 89 256 –
Surplus / (Deficit) – – – – Retained earnings on other than participating business 13 354 2 936 16 290 16 290
Movement in technical reserves 1 231 175 – 1 231 175 55 931 Balance of shareholders' sub fund at the end of the period (c) 19 957 10 287 30 244 16 290
Balance of PIF at the beginning of the period 55 931 – 55 931 – Balance of statutory funds at the end of the period (a+b+c) 1 345 578 23 539 1 369 117 83 497
Balance of PIF at the end of the period (a) 1 287 106 – 1 287 106 55 931
33.3 Statement of contribution (Rupees ‘000)
33.2.2 Participants' Takaful Fund (PTF) Statutory Funds
Individual Group
Income Family Family Aggregate Aggregate
Contribution net of retakaful recoveries 41 215 36 889 78 104 22 330 Takaful Takaful 2016 2015
Gross contribution
Net investment income 2 556 264 2 820 84 Regular contribution individual policies
Total net income 43 771 37 153 80 924 22 414 First year 665 979 – 665 979 235 600
Second year 121 946 – 121 946 –
Less: Claims and Expenditure Subsequent year renewal 5 298 – 5 298 –
Claims net of retakaful recoveries 3 771 13 098 16 869 2 484 Single contribution individual policies 1 041 515 – 1 041 515 18 992
Selection discount ( 8 785 ) – ( 8 785 ) – Group policies without cash values – 51 701 51 701 13 141
Wakala fee 18 447 13 902 32 349 8 654 Total gross contribution 1 834 738 51 701 1 886 439 267 733
13 433 27 000 40 433 11 138 33.3.1 Participants' Investment Fund
Excess of income over claims and expenditure 30 338 10 153 40 491 11 276 Allocated regular contribution 253 163 – 253 163 45 775
Allocated single contribution 1 041 515 – 1 041 515 18 992
Add : Technical reserves at the beginning of the period 6 397 2 942 9 339 – Total allocated contribution 1 294 678 – 1 294 678 64 767
Less : Technical reserves at the end of the period 20 563 8 011 28 574 9 339
33.3.2 Participants' Takaful Fund
( 14 166 ) ( 5 069 ) ( 19 235 ) ( 9 339 )
Allocated gross contribution 65 604 51 701 117 305 31 036
Surplus / (Deficit) before distribution 16 172 5 084 21 256 1 937
Less: Retakaful contribution ceded
Movement in technical reserves 14 166 5 069 19 235 9 339 On individual life first year business 20 439 – 20 439 4 260
Balance of PTF at the beginning of the period 8 177 3 099 11 276 – On individual life second year business 3 950 – 3 950 –
Balance of PTF at the end of the period (b) 38 515 13 252 51 767 11 276 On group policies – 14 812 14 812 4 446
Total retakaful contribution ceded 24 389 14 812 39 201 8 706
Net Risk Contribution of PTF 41 215 36 889 78 104 22 330
33.3.3 Shareholders' Sub-Fund
Unallocated regular contribution 474 456 – 474 456 171 930

131
33.4 Statement of Claims (Rupees ‘000)
(Rupees ‘000) Statutory Funds
Individual Group
Statutory Funds Family Family Aggregate Aggregate
Individual Group Takaful Takaful 2016 2015
Family Family Aggregate Aggregate Acquisition costs
Takaful Takaful 2016 2015 Administration expenses
Salaries and other benefits 59 422 2 270 61 692 20 865
Claims under Individual Family Takaful 94 985 – 94 985 2 300
Travelling expenses 3 803 56 3 859 4 582
Claims under Group Family Takaful – 18 542 18 542 4 540 Cede money - Waqf – – – 2 000
Total Gross Claims 94 985 18 542 113 527 6 840 Actuary's fees 1 224 1 224 321
Medical fees 537 – 537 256
Gross Claims allocated as follows: Legal and professional fee 6 909 21 6 930 5 699
Participant's Investment Fund (PIF) Advertisements and publicity 2 488 – 2 488 7 121
Computer expenses 1 860 1 1 861 701
Surrenders / Partial withdrawals under Printing and stationery 3 821 34 3 855 2 295
Individual Policies 86 045 – 86 045 2 300 Depreciation 5 742 125 5 867 669
Amortization 1 266 – 1 266 229
Participant's Takaful Fund (PTF) Rental 3 513 189 3 702 810
Under individual policies by death 8 940 – 8 940 – Postage 7 133 – 7 133 177
Under group policies by death – 18 140 18 140 4 532 Fees and subscription 9 732 47 9 779 2 909
Under group policies by event other than death – 402 402 8 Other management expenses 14 130 244 14 374 6 122
Total gross claims under PTF 8 940 18 542 27 482 4 540 Gross Management Expenses 661 595 10 358 671 953 255 831
Less: Re-Takaful recoveries under PTF
Commission from reinsureres ( 8 785 ) – ( 8 785 ) –
On group policies – 5 444 5 444 2 056 Fees charged to policyholders ( 19 ) – ( 19 ) –
On individual policies 5 169 – 5 169 –
Net Management Expenses 652 791 10 358 663 149 255 831
Net Claims under PTF 3 771 13 098 16 869 2 484
Total Net Claims 89 816 13 098 102 914 4 784 33.6 Statement of Investment Income (Rupees ‘000)
Statutory Funds
33.5 Statement of Expenses Individual Group
(Rupees ‘000) Family Family Aggregate Aggregate
Statutory Funds Takaful Takaful 2016 2015
33.6.1 Participants' Investment Fund (PIF)
Individual Group
Family Family Aggregate Aggregate Return on government securities 5 078 – 5 078 219
Acquisition costs Takaful Takaful 2016 2015 Other Fixed Income securities 17 703 – 17 703 606
Dividend Income 8 217 – 8 217 –
Shareholders' Sub-Fund
Amortization of (premium) / discount ( 311 ) – ( 311 ) (9)
Remuneration to insurance intermediaries Gain on sale of Investment 5 962 – 5 962 –
on individual policies: Unrealized gain / (loss) on Investment 73 133 – 73 133 ( 49 )
- commission on first year contribution 288 100 – 288 100 111 479 Net investment income of PIF (a) 109 782 – 109 782 767
- commission on second year contribution 12 797 – 12 797 –
- commission on Subsequent Renewal Contribution 1 187 – 1 187 – 33.6.2 Participants' Takaful Fund (PTF)
- commission on single contribution 34 077 – 34 077 424 Return on government securities 105 103 208 14
- override commission 40 802 – 40 802 13 058 Profit on bank deposits 2 451 161 2 612 70
- other benefits to insurance intermediaries 110 710 – 110 710 56 906 Net investment income of PTF (b) 2 556 264 2 820 84
487 673 – 487 673 181 867
33.6.3 Shareholders' Sub-Fund
Remuneration to insurance intermediaries
on group policies: Return on government securities 22 – 22 37
- commission – 5 951 5 951 199 Other Fixed Income securities 78 – 78 87
- other benefits to insurance intermediaries – 1 420 1 420 2 470 Dividend Income 37 – 37 –
Amortization of discount/premium (1) – (1) –
– 7 371 7 371 2 669 Gain on sale of Investment 26 – 26 –
Unrealized Gain / (loss) on Investment 323 – 323 (10 )
Branch overheads 38 757 – 38 757 16 438 Interest on bank deposits 2 102 – 2 102 1 942
Other acquisition costs Net investment income of
- policy stamps 13 585 – 13 585 101 shareholders' sub-fund (c) 2 587 – 2 587 2 056
Total acquisition cost 540 015 7 371 547 386 201 075 Net Investment Income (a+b+c) 114 925 264 115 189 2 907

133
Statements under Section 52(2) of
Insurance Ordinance 2000
34. DATE OF AUTHORIZATION FOR ISSUE Statement by Appointed Actuary
These financial statements were authorized for issue by the Board of Directors of the Company in their meeting held
I have reviewed the Balance Sheet and Revenue Account and related notes prepared by the Company for the year ending
on February 14, 2017.
December 31, 2016. In my opinion:
35. GENERAL
(a) the policyholder liabilities included in the balance sheet have been determined in accordance with the provisions
35.1 Figures in these financial statements have been rounded off to the nearest thousand of rupees, unless otherwise stated. of the Insurance Ordinance, 2000 (“the Ordinance”); and
35.2 Certain prior year's figures have been reclassified for the purpose of comparison. However, there are no major
reclassifications to report.
(b) each statutory fund set up by the Company, after accounting for the capital contribution, complies with the
solvency requirements of the Ordinance.
35.3 The Board of Directors has proposed a cash dividend of Rs.12 per share (2015: Rs.7/- per share) amounting to Rs. 1,200
million (2015: Rs. 700 million) at its meeting held on February 14, 2017 for the approval of the members at the Annual
General Meeting to be held on April 15, 2017 . These financial statements do not reflect this appropriation as explained
in note 5.1.10.
OMER MORSHED, FCA, FPSA, FIA

Appointed 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 the
statement 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 rules
made there under relating to paid-up capital, solvency and reinsurance arrangements, and
c. As at December 31, 2016 EFU Life Assurance Ltd, continues to be in compliance with the provisions of the
Ordinance 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 the
Insurance Ordinance, 2000 and the Insurance Rules, 2002.

135
Pattern of Shareholding
as at 31 December 2016
Shareholdings Information as required under the Code of Corporate Governance

Number of Holding
Shareholders From To Shareholders Categories of Shareholders Shareholders Shares held Percentage
Associated Companies, Undertakings and Related Parties
197 1 100 7 718
273 101 500 76 756 EFU General Insurance Ltd. 43 059 240
131 501 1 000 107 030 Jahangir Siddiqui & Co. Ltd. 20 047 708
359 1 001 5 000 992 843 Energy Infrastructure Holding (Pvt) Ltd 800 000
74 5 001 10 000 545 039 J S Bank Ltd. 982 000
26 10 001 15 000 322 069 Jahangir Siddiqui Securities Services Limited 38
19 15 001 20 000 328 027 Trustee EFU Life Assurance Ltd., Staff Provident Fund 760
9 20 001 25 000 205 600 7 64 889 746 64.89
6 25 001 30 000 166 570 Mutual Funds
3 30 001 35 000 93 840 ICP A/C. MR. NOMAN FAROOQ 471
3 35 001 40 000 112 303 ICP A/C. COL M.A. SHEIKH 1 331
4 40 001 45 000 172 821
IDBL (ICP UNIT) 35
9 45 001 50 000 441 274
3 55 001 60 000 168 096 3 1 837 0.00
2 60 001 65 000 124 800 Directors, CEO, & their spouses and minor children
5 65 001 70 000 340 633 Rafique R. Bhimjee 3 482 596
3 75 001 80 000 235 834 Saifuddin N. Zoomkawala 500 000
1 80 001 85 000 82 352 Taher G. Sachak 525 928
1 90 001 95 000 92 400 Muneer R. Bhimjee 3 519 981
3 95 001 100 000 298 800 Hasanali Abdullah 136 146
2 100 001 105 000 204 200 Heinz Walter Dollberg 588
1 105 001 110 000 106 061 Kamal Afsar 501
1 115 001 120 000 120 000 Syed Salman Rashid 10 000 463
1 120 001 125 000 125 000 Mahmood Lotia 6 000
1 125 001 130 000 128 469 Naila Bhimjee 1 288 835
2 130 001 135 000 265 700 Lulua Saifuddin Zoomkawala 55 432
1 145 001 150 000 150 000
1 150 001 155 000 150 601 13 19 516 470 19.52
1 155 001 160 000 155 929 Executives 5 143 307 0.14
1 165 001 170 000 167 000 Banks, Development Finance Institutions, 3 846 741 0.85
1 175 001 180 000 176 063 CDC Modarabas & Mutual Funds 2 132 000 0.13
2 245 001 250 000 499 994 Non-Banking Finance Institutions, Insurance Co. 3 46 600 0.05
1 330 001 335 000 332 000 Individuals / Others 1 125 10 299 959 10.30
1 345 001 350 000 349 865 Foreign Investors (repatriable basis) 7 4 123 340 4.12
1 405 001 410 000 406 123
Total 1 168 1 00 000 000 100.00
1 480 001 485 000 480 773
2 495 001 500 000 1 000 000 Shareholders holding 5 % or more voting interest
1 675 001 680 000 676 470 EFU General Insurance Ltd. 43 059 240 43.06
1 710 001 715 000 714 756 Jahangir Siddiqui & Co. Ltd. 20 047 708 20.05
1 795 001 800 000 800 000 Syed Salman Rashid 10 000 463 10.00
3 830 001 835 000 2 502 000
1 945 001 950 000 948 229
1 950 001 955 000 952 621
1 980 001 985 000 982 000
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 43 055 001 43 060 000 43 059 240
1 168 100 000 000

137
Glossary of Important Terms
Acquisition cost Expenses incurred by the company for acquisition of Insurance/Takaful business. These mainly PAT Gross profit for the year net of the tax for the year, as mentioned in the Profit and Loss Account.
include expenses relating to the distribution channels.
Policyholders’ liabilities It is the value of the obligation of the insurer to its policyholders. A major portion of this is
Administration Expenses Expenses of the company other than the acquisition cost. policyholder reserves, which is the amount representing actual or potential liabilities kept by
an insurer to cover policyholders benefits.
Authorized Share Capital The maximum value of shares that a Company can issue.
Premium Financial cost of obtaining an insurance cover, paid as a lump sum or in installments during
Balance Sheet An accounting term referring to a listing of a company's assets, liabilities and surplus as of a the duration of the policy
specific date.
Qard - e - Hasna In case of a deficit in Waqf Fund, Takaful Operator extends a Qard-e-Hasna (interest free loan)
Cash Value The cash value of an insurance/Takaful contract, also called the cash surrender value or to PTF to cover the deficit. This Qard is repaid to the Takaful Operator from future surpluses
surrender value, is the cash amount offered to the policyholder/participant by the life in the PTF.
insurer/Takaful operator upon cancellation/maturity of the insurance/Takaful policy.
Reinsurance Premium Reinsurance premiums are premiums paid to other insurance companies pursuant to the
Claims The amount payable under a contract of insurance/Takaful arising from occurrence of an reinsurance agreements mainly for the purpose of diversification of risks of high value policies.
insured event.
Retakaful Contribution Retakaful contributions are contributions paid to other Takaful companies pursuant to the
Commission Remuneration to an insurance/Takaful intermediary for services such as selling and servicing retakaful agreements mainly for the purpose of diversification of risks of high value memberships.
of insurance/Takaful products
Retention The part of insurance/Takaful risk that the reinsurer/Takaful Operator retains before passing
Contribution Monetary contribution paid as lump sum or periodically by a participant to a Takaful operator on the excess to a reinsurer/Retakaful.
for the purpose of obtaining Takaful Benefits
Return on Equity Return on equity measures a company's profitability by revealing how much profit a company
Death Claim Insurance/Takaful claims paid to beneficiaries when the insured person/participant dies during generates with the money shareholders have invested. ROE is expressed as a percentage and
the period of insurance/Takaful. calculated as: Return on Equity = Net Income/Shareholder's Equity
Disability Claim Insurance/Takaful claims paid to the insured person/participant in case of a defined disability Shareholders' Equity This is the total of Paid-up capital, accumulated surplus and any general reserves.
during the periods of insurance/Takaful
Shareholders' Fund A fund that is established in the records of a life insurance/Takaful Operator and which contains
Dividend Yield A financial ratio that shows how much a company pays out in dividends each year relative that part of the assets and liabilities of a life insurer/Takaful operator which is attributed to it
to its share price. In the absence of any capital gains, the dividend yield is the return on and is not attributed to any statutory fund maintained by that life insurer/Takaful Operator
investment for a stock.
Solvency Having sufficient assets-capital, surplus, reserves-and being able to satisfy financial requirements
Earnings per Share The portion of the company's profit allocated to each outstanding share of common stock. to be eligible to transact insurance/Takaful business and meet liabilities.
Earnings per share serves as an indicator of a company's profitability.
Statutory Fund A fund that is established in the records of a life insurer/ Takaful Operator and which relates
Gross Contribution Total contribution of the Operator for all takaful lines of business including Individual Family solely to the life insurance/Takaful business of that life insurer/takaful operator or a particular
Takaful new business, Individual Family Takaful renewal contributions, Group Family Takaful part of that life insurance/Takaful business
business and Single Contribution.
Surplus in Waqf Fund The excess of assets over liabilities in Waqf Fund/Participants' Takaful Fund (PTF). Negative
Gross Premium Total premium of the company for all lines of business including individual life new business, surplus would be named as 'Deficit' in Waqf Fund.
individual life renewal premium, Group business and single premium
Surrender Claim Insurance/Takaful claims paid to the insured person/participant in case an insurance/Takaful
Maturity Claim Insurance/Takaful claim paid to the insured person/Participant in case of maturity of the policy is terminated before end of its term
insurance/Takaful policy.
Underwriting The process of assessing and selecting risks for insurance/Takaful and classifying them according
Net Contribution Gross contribution less the retakaful contribution ceded. to their degrees of insurability so that and appropriate price may be assigned. The process
Net Premium Gross premium less the reinsurance premiums ceded also includes rejection of those risks that do not qualify.
Outstanding Claims Claims incurred and reported but not paid as on the date of the financial statements Takaful Donation/Tabarru
Donation/Mortality Charge The portion of contribution of Participant to the Waqf Fund/Participants' Takaful Fund to
Paid-up capital The amount paid or contributed by shareholders in exchange for shares of a company's stock. obtain its membership for Takaful benefits.
Participants A person who participates in a Takaful scheme and to whom Takaful Contract is issued Takaful Operators Fund A Fund setup by a Window Takaful Operator which shall undertake all transactions which the
Operator undertakes other than those which pertains to Participants Takaful Fund/Participant
Participants' Investment
Investment Fund setup for the Window Takaful Operations.
Fund (PIF) The unit linked investment fund in which a proportion of the gross contribution is invested.
Wakalah Fee The fee that takaful operator charges for the management of Waqf Fund or acting as a Wakeel
Participants' Takaful
(Manager of PTF).
Fund (PTF)/Waqf Fund A fund which is a risk pool for Takaful participants. It is a sub fund of a statutory fund into
which participant's risk related contributions are paid and risk related benefits are paid out. Window Takaful Operator A Registered Insurer authorized under Takaful Rules, 2012 to carry on Takaful business as
Window Operations in addition to Conventional Insurance Business.

139
Group Benefits & Individual Life - Offices
Bancassurance - Offices
Group Benefits - Offices Bancassurance - Offices Abbottabad Branch Bahawalpur City Branch Dera Ismail Khan Branch
Alfatah Shopping Center, Opposite Radio 88-A, Noor Mahal Road, Bahawalpur. 1st Floor, Najeeb Centre,
Karachi Karachi Station, Jhungi, Abbottabad. 062-2887338,39,40,41,42,43,44 & East Circular Road, Dera Ismail Khan.
0992-341978, 0992-403697, 0992-334254, 062-2887348,49,50 0966-734001-02,03,04,05 & 06
Plot No. 112, 8th East Street, Phase-I, DHA, Karachi 37-K, Block 6, PECHS, Karachi Waqas Khan, Senior Unit Manager Naeem Akhter Chaudhry, Branch Manager S. Hasan Ali Shah, Unit Manager
Phone: 111-338-111 (Ext:615) Phone: (021) 34541740, 38652300-2305, 4304560,
34304560, 34304514, 34304516-7, 34304565 Ahmed Pur East Branch Bahawal Nagar Branch Daharki Civic Branch
Hasan Aamir, Regional Sales Director
S. Afsar Raza, Chief Marketing Manager Husein Sachak, Director - Bancassurance Opposite Canal Rest House, Chishtian Road opposite PSO Pump Near Main G.T. Road,
Katchery Road, Ahmed Pur East. Near Chungi # 2, Bahawalnagar Daharki, Districkt Ghotki.
Naveed-ul-Haq Bhatti, Chief Marketing Manager Ali Asghar Khandwala, Deputy Head - Bancassurance 062-2273039, 062-2273049, 0632-277247 0723-643256, 0723-643512,
Anila Hassan Riaz, Senior Marketing Manager Mohammad Faisal, Head of Bancassurance - South Ishfaq Hussain Mughal, Hamid Bilal, Senior Unit Manager 0723-642424, 0723-643440,
Rizwana Aslam, Marketing Manager Assistant Branch Manager Muhammad Nadeem,
Farukh Hassan, Head of Marketing & Development Bhakkar Branch
Umair Siddiqui, Marketing Executive Assistant Branch Manager
Adeel H. Jaffery, Director (Group Projects) Lahore Ali Pur Chatha Branch
1st Floor Ubaid Plaza Near MCB Bank
Dera Allahyar Branch
Gujranwal Road opposite the Behal Road Bhakkar
Lahore Office No.101, Mezzanine Floor Bank of Punjab, Ali Pur Chatta Tehsil 0453-515074 Main Quetta Road, Dera Allahyar
Rehman Business Centre, Near Firdos Market Waziriabad, Distt., Gujranwala Mujahid Khan, Senior Unit Manager 0740510636
33/2, Block B-1, Gulberg III, Lahore
Gulberg III, Lahore 0556332690 Jan Muhammad, Senior Unit Manager
Phone: (042) 35870801-05 Phone: (042) 35710744, 35772665, 35772605, Bhimber Branch
Muhammad Ishfaq, Unit Manager
S.A.R. Zaidi, Executive Director 35772624 Dera Ghazi Khan Branch
Heaven Palace Basement Sultan Plaza
Fazal Mehmood, Regional Sales Director Arifwala Branch
Fayyaz Mehmood Tahir, Meer pur Chowk Bhimber AJK Jampur Road, 1st Floor,
Zaheer Aslam, Regional Manager Head of Bancassurance - Central EFU Life Assurance, M-Block, 053-7575520-22 Habib Metropolitan Bank, D.G. Khan
Faisal Masud, Group Manager Pakpattan Road, Arifwala. M. Rizwan Sadiq, Unit Manager 0642-468116, 0642-471056-7,
Hafiz Muhammad Babar Rafique, 045-7830480, 045-7830478' 045-7830479, Mukhtar Ahmed Tabbsum,
Mubashar Ahmed, Chief Marketing Manager Sr. Regional Head - Bancatakaful 045-7830481, 045-7830483, 045-7830477, Burewala Branch Assistant Branch Manager
Tasleem Iqbal, Senior Marketing Manager
Syed Zamin Ali, Regional Head - Bancassurance Altaf Hussain, Branch Manager Upper MCB Bank,
Saad Farooqi, Senior Marketing Executive Dinga Branch
Zubair Zahid, Regional Head - Bancassurance Main Multan Road, Burewala.
Arifwala City Branch
Islamabad 0673-771491-94, 771338 1st Floor, Fazil Plaza, Dalyan Chowk,
Islamabad EFU Life Assurance, M-Block, Imran Mehfooz, Assistant Branch Manager Dinga, Tehsil Kahrian Distt., Gujrat.
3rd Floor, Al Malik Centre Pakpattan Road, Arifwala. 0537-400338, 0537-402338, 0537-404338,
70W, Jinnah Avenue 3rd Floor, Al Malik Centre 045-7830480, 045-7830478, 045-7830479, Baltistan Branch 0537-403399, 0537-600749,
Blue Area, Islamabad 70- W, Jinnah Avenue, Blue Area, Islamabad 0457830481, 045-7830483, 045-7830477, Husaini chowk Main Bazar Skardu Baltistan Qaisar Abbas, Branch Manager
Phone: (051) 2803385-88 Ahsaan Talib, Senior Unit Manager 05815-450941
Phone: (051) 2348046, 2803385-8 Digri Branch
Tahir Sultan, Head of Bancassurance - North Attock Branch Mubashir Hassan, Branch Manager
Noor-ur-Rehman, Regional Manager Near Govt. Girl's High School, Digri
Mariam Mani, Regional Head 1st Floor, Sheikh Jaffar Plaza, Chilas Branch Mirpurkhas
Rizwan Bajwa, Marketing Manager Kamran Hassan, Regional Head - Bancatakaful
Kamran Malik, Senior Marketing Executive Siddiqui Road, Attock City. Near Karakuram Cooperative Bank Chilas 0331-0368053
Rao Asif Khan, Marketing Executive 057-2703338, 057-2602067, Tassawar Ali, Senior Unit Manager
Faisalabad 057-2701957, 057-2702338
0581-2450647
Muhammad Ali Qazilbash, Marketing Executive Ouranzeb, Senior Unit Manager
25 Waheed Center, Kohinoor Town, Amjid Hussain Shah, Faisalabad Branch
Faisalabad College Road, Opp. Hockey Stadium, Faisalabad Assistant Branch Manager Chichawatni Branch 2nd Floor, Ajmal Centre,
Phone: (041) 8503370,71,72,73 / 8503338, 39 Bagh AK Branch Plot No # 1976, Street No 2, Block No 14, 289 Batala Colony, Faisalabad.
2nd Floor, Ajmal Centre 289 0418555981-2,3,4,5,6,7
Batala Colony, Faisalabad Shafqat Ali, Regional Head - Bancassurance Gujjar Chow Near Capton Naeem Hospital
Near Bagh International Hotel Chicha Watni Ali Raza, Senior Unit Manager
Phone: (041) 8555987 Peshawar 2nd Floor of Amaar Hospital Distt Bagh AK 0405-487158
0346-5212797 Faisalabad Central Branch
Imran Yaqub, Marketing Manager Mudassir Meraj, Senior Unit Manager
2nd Floor, NWR Plaza, Khyber Supermarket Ghulam Mustafa, Senior Unit Manager 2nd Floor, Ajmal Centre,
Multan Near Qayyum Stadium, Bara Road, Peshawar Cantt Chishtian Branch 289 Batala Colony, Faisalabad.
Phone: (091) 5252129, 5606002 Bahawalpur Branch
13 Gajyani Road, Chishtian. 041-8555981-2,3,4,5,6,7,
1st Floor, Rajput Commercial Centre Fawad Farooqui, Regional Head - Bancassurance 88-A, Noor Mahal Road, Bahawalpur. Mohammad Zahid Bashir,
063-2500299, 063-2509037, 063-2508037
Tareen Road, Near Gull Tax Showroom, Multan 062-2887338,39,40,41,42,43,44 & 063-2508137, 063-2507334, 063-2507332, Senior Unit Manager
Phone : (061) 4500913, (061) 4500914
Jhelum 062-2887348,49,50, Muhammad Amin, Senior Unit Manager
Mian M. Afzal, Faisalabad Chenab Branch
Karim Arcade, Machine Mohalla No.3, Jhelum Assistant Branch Manager Chowk Munda Branch
Zafar Abbas Chughtai, Assistant Marketing Manager 2nd Floor, Ajmal Centre,
Phone: (0544) 621017 289 Batala Colony, Faisalabad.
Bahawalpur Cantt Branch Multan Road Upper Story
Kashif Mansoor Ali Khan, Area Head - Bancassurance Husnain Honda Center. 041-8555981-2,3,4,5,6,7
88-A, Noor Mahal Road, Bahawalpur. 0344-2968580 Tajamal Khan, Branch Manager
Multan 062-2887338,39,40,41,42,43,44 & Sikander Arshad, Group Manager
Syed Rizwan Ali Shah, Unit Manager
062-2887348,49,50,
2nd Floor, Golden Heights Plaza
Junaid Masud, Regional Manager Depalpur Branch
Opp. High Court, Multan Cantt
Phone: (061) 4587120, 30,40,50 Super Market Okara Road Depalpur.
0333-6991991
Gujranwala Ahmad Kamran, Unit Manager
Office No 13/1,
2nd Floor, Bhutta Center, Gujranwala

141
Faisalabad City Branch Haroonabad Branch Hyderabad Mehran Branch Karachi Cantt Branch Karachi Gulshan-e-Hadeed Branch Karachi Pioneer Branch
2nd Floor, Ajmal Centre, Milad Chowk, Baldia Road, Haroonabad. 1st Floor, Plot No. C-10, Railway Cooperative Nafees Arcade, 3rd Floor, Off No. 301, 1st Floor, C-15, Phase-I, 37-K, Block-6, PECHS, Karachi.
289 Batala Colony, Faisalabad. 0632253592, 0632253290-1, Housing Society, Near MC Modnalds Opp. Askari Park, University Road, Karachi. Gulshan-e-Hadeed, Bin Qasim, Karachi. 021-34320667, 021-34384020,
041-8555981-2,3,4,5,6,7, Muhammad Kashif, Senior Branch Manager Autobhan, Hyderabad. 021-34854675, 021-34854672, 021-34721574-76 & 021-34715070-71,72, 021-34320619, 021-34320620,
Syed Bashrat Ali, Assistant Branch Manager 022-2786323, 022-2780811, 022-2784642, 021-34854674 Ghulam Shabbir Mirani, Branch Manager 021-34386340-1,2,3,4
Hub Chowki Branch 022-2784746, 022-2784729, 022-2785278, Reeta, Senior Unit Manager Nasir Rashid Bhatti, Senior Branch Manager
Fateh Pur Branch 022-2785217, 022-2784629, 022-2786360, Karachi Indus Branch
Main R.C.D. Road, Hub Chowki, Karachi Capital Branch Karachi Royal Branch
M M Road Fateh Pur near NBP old grain Distric Lasbella, Hub Chowki. 022-2780815, 022-27880453, Al-Samad Tower, 7th Floor, Plot # SB-33,
market Tehsil Karor Lal easn Distt Layyah. 0853302115, 085364098 Syed Sajid Ali, Branch Manager 37-K, Block-6, PECHS,Karachi Block 13-B, Opposite Bait-ul-Mukarram 37-K, Block-6, PECHS, Karachi.
606840848 Lal Bakhsh Baloch, Assistant Branch Manager 021-34811183, 82, 72, 73, 73, 85, 69, 81 Masjid, Gulshan-e-Iqbal, Main University 021-34320311
Hyderabad Prime Branch
Ghulam Abbu Talib, Senior Unit Manager Ghulam Sarwar, Senior Unit Manager Road, Karachi. Shahzad Hanif, Senior Unit Manager
Hassan Abdal Branch 1st Floor Plot No. C-10, Railway Cooperative 021-34811183,
Ghotki Branch Housing Society, Near MC Modnalds Karachi Central Branch S.Shahid Hussain Zaidi, Karachi Saddar Branch
1st Floor Ch. Tariq Plaza Near
1st Floor, Shadani Shopping Center, MCB Bank GT Road Hassan Abdal Autobhan, Hyderabad. 37-K, Block-6, PECHS, Karachi. Senior Branch Manager 37-K, Block-6, PECHS, Karachi.
Opposite Police Station, Ghotki. 057-2522238 022-2786323, 022-2780811, 022-2784642, 021-34554006, 021-34559126, 021-34554006, 021-34559126,
022-2784746, 022-2784729, 022-2785278, Karachi Karsaz Branch
072-3680352, 072-3680351, 072-3684107, Mubashar Azam, Unit Manager 021-34384020, 021-34320619, 021-34384020, 021-34320619,
072-3682423 022-2785217, 022-2784629, 022-2786360, 021-34320620, 021-34386340-1,2,3,4, Nafees Arcade, 3rd Floor, Off No. 301, 021-34320620, 021-34386340-1,2,3,4
Mahesh Kumar, Branch Manager Hyderabad Autobahn Branch 022-2780815, 022-27880453, Syed Arif Raza, Group Manager Opp. Askari Park, University Road, Karachi. Mubashar Qayyum, Senior Unit Manager
Mohammad Farhan Ali, 021-34854675,021-34854672,
B-15/9, RECHS, 2nd Floor, Assistant Branch Manager Karachi City Branch Karachi Shaheen Branch
Gilgit Baltistan Branch 021-34854674
The Autobahn Road, Hyderabad.
1st Floor, Dar Plaza, Nabi Bazar, Gilgit. 022-3411190-1 & 37-K, Block-6, PECHS, Karachi. Zahoor Ahmed Khuhro, Room# 201 Nafees arcade 2nd floor plot
Hunza Nagar
05811-459874 022-3411181-2,3,4,5,6,7,8,9 021-34554006, 021-34559126, Senior Branch Manager sc-14 KDA Scheme no:7 Chandi chowk,
Faiz Ahmed Khan, Senior Branch Manager Bhesham Kumar, Branch Manager 2nd floor Nazar Shah Plaza Hospital Chok 021-34384020, 021-34320619, University Road Karachi
Ali Abad Hunza Karachi Mehran Branch
021-34320620, 021-34386340-1,2,3,4, 021-32294791-2, 021-32237702,
Ghizer Branch Hyderabad Model Branch 05813455172, 0344-5949858 Malik Zafarullah Khan, 37-K Block-6 PECHS Karachi Muzaffar Ahmed Bughio,
Sajjad Haider, Assistant Branch Manager Assistant Branch Manager 021-34811183,74 Branch Manager
2nd floor, Dar Plaza, Nabi Bazar, Gilgit B-15/9, RECHS, 2nd Floor,
05811459874, 346-2513655 The Autobahn Road, Hyderabad. S.Samar Raza Zaidi, Branch Manager
Islamabad Branch Karachi Crescent Branch Karachi West Branch
Imran Khan, Senior Unit Manager 022-3411190-1 & Karachi Merewether Branch
022-3411181-2,3,4,5,6,7,8,9 & Al-Malik Centre, 3rd Floor, 70-W Jinnah 37-K, Block-6, PECHS, Karachi. 37-K, Block-6, PECHS, Karachi.
Gujranwala Branch Durdana Khan, Assistant Branch Manager Avenue (Blue Area), Islamabad. 021-34320618, 021-34384020, 37-K, Block-6, PECHS, Karachi. 021-34554006, 021-34559126,
051-2803367, 051-2348048, 051-2803112, 021-34320619, 021-34320620, 021-34554006, 021-34559126, 021-34384020, 021-34320619,
2nd Floor, AWR Plaza, Upside First Women's 051-2803043, 051-2348049, 051-2348172,
Hyderabad Cantt Branch 021-34386340-1,2,3,4 021-34384020, 021-34320619, 021-34320620, 021-34386340-1,2,3,4,
Bank Ltd, Main G.T. Gujranwala. 051-2348045, 051-2803175, 051-2803284,
055-3257387, 055-3734104, 055-3730790, 1st Floor, Plot No. C-10, Railway Cooperative Faisal Maniar, Assistant Branch Manager 021-34320620, 021-34386340-1,2,3,4, Nadeem Alam Ansari, Branch Manager
051-2803283 Rehan Anwar, Group Manager
055-3731660, 055-3257388, Housing Society, Near MC Modnalds Younus Butt, Assistant Sales Director Karachi Faisal Branch Kot Addu Branch
Rashid Riaz, Senior Unit Manager Autobhan, Hyderabad. Muhammad Kashif Khan, Branch Manager Karachi Metropolitan Branch
022-2786323, 022-2780811, 022-2784642, 37-K, Block-6, PECHS, Karachi. Upper Story of Quami Bachat Bank,
Gujrat Branch 022-2784746, 022-2784729, 022-2785278, Islamabad City Branch 021-34313637, 021-34302323, 37-K, Block-6, PECHS, Karachi. Railway Kot Addu
Dhakkar Plaza, 022-2785217, 022-2784629, 022-2786360, 021-34302324, 021-34527136, 021-34320667, 021-34384020, 0662239122
022-2780815, 022-27880453, Al-Malik Centre, 3rd Floor, 70-W Jinnah Shah Zaman Shaikh, 021-34320619, 021-34320620, Fazal Abbas, Senior Unit Manager
Rehman Shaheed Road, Gujrat. Avenue (Blue Area), Islamabad.
053-3514246, 053-3609417-18,19, Zaheeruddin Babar, Senior Branch Manager Assistant Branch Manager 021-34386340-1,2,3,4,
051-2803367, 051-2348048, 051-2803112, Abdul Ghafoor Mashori, Senior Unit Manager Kotli Branch
Faisal Tahir, Regional Manager 051-2803043, 051-2348049, 051-2348172, Karachi Galaxy Branch
Hyderabad New City Branch
Ali Rizwan, Senior Branch Manager 051-2348045, 051-2803175, 051-2803284, 2nd Floor, Rathore Plaza, Rawalpindi Road,
Karachi Model Branch
Office No. 8,9, 2nd Floor, Shelter Shopping 051-2803283 Room No. 620, 6th Floor, Opposite Gulistan Hotel, Kotli, Azad Kashmir.
Gawadar Branch Mall, Saddar Cantt, Hyderabad. Nadeem Afzal Khan, Senior Unit Manager EFU House, M.A. Jinnah Road, Karachi. Nafees Arcade, 3rd Floor, Off No. 301, 0582-6445621
Air Port Road Gawadar. 022-2720550-1,2,3 021-32203381, 021-32311969, Opp. Askari Park, University Road, Karachi. Sardar Zakaullah Khan, Branch Manager
0321-8091617 Syed Sabir, Senior Unit Manager Jacobabad Branch 021-32311964, 0300-3811787, 021-34854675, 021-34854672,
Jagdesh Kumar Pahooja 021-34854674 Kotli City Branch
Akhtar Ali, Assistant Branch Manager 1st Floor, National Autos,
Hyderabad City Branch Senior Branch Manager Bheroo Mal, Senior Unit Manager
Main Quaid-e-Azam Road, Jacobabad. First floor MCB, Altaf Fazal Plaza Kotli AK.
Gojra Branch B-15/9, RECHS, 3rd Floor, 072-2650156, 072-2651876, 072-2654931, 058-26448606
Karachi Garden Branch Karachi New City Branch
Latif Plaza 1st Floor, Tehsil Office Road Gojra The Autobhan Road, Hyderabad. Faqir Muhammad Shaikh, Branch Manager Gul Nazar, Assistant Branch Manager
Dist. Toba Tek Singh. 022-2786323, 022-2780811, 022-2784642, F-2, 1st Floor, 67/A, 37-K, Block-6, PECHS, Karachi.
022-2784746, 022-2784729, 022-2785278, Jhelum Branch APWA Complex, Garden Road, Karachi. 021-34527218, 021-34527135, Kharian Branch
041-3422769
Sajjad, Senior Unit Manager 022-2785217, 022-2784629, 022-2786360, 021-32237678, 021-32257309, 021-386507, 021-34313638, Al Muqeet Center G.T, Road Kharian.
022-2780815, 022-27880453, Karim Arcade M.M. 021-32253472 & 021-32241981-2,3,4, Rabnawaz Ghumro, Senior Branch Manager
No. 03 Jada Road, Jhelum 0346-6485700
Hafizabad Branch Dileep Nenwani, Senior Branch Manager Shehzad Pyarali, Branch Manager Shams Uddin Shaikh, Regional Manager Qaisar Abbas, Branch Manager
0544627337, 0544627118 ,
1st Floor, Upper Al Baraka Bank, 0544720394,0544628606, 0544628751, Karachi Gulshan Branch Karachi Paradise Branch
Nadeem Shakeel, Assistant Branch Manager Kotla A.A. Khan Branch
Ali Pur Road, Distt. Hafizabad.
054-7525639, 054-7524639, 054-7540639, Nafees Arcade, 3rd Floor, Off No. 301, F-2, 1st Floor, Near Fruit Mandi, Bhimber Road,
054-7541639, 054-7523639, Karachi Falcon Branch Opp. Askari Park, University Road, Karachi. APWA Complex, Garden Road, Karachi. Kotla AA Khan.
Hafiz Muhammad Amjad, 021-34854675, 021-34854672, 021-32237678, 021-32257309, 053-7575520-21,22
37-K Block 6 PECHS Karachi 021-34854674 021-32253472 & 021-32241981-2,3,4,
Senior Unit Manager 02134811173,74 Muhammad Saeed,
Abdul Wahab Shaikh, Khawar Ahmed, Assistant Branch Manager Assistant Branch Manager
Adil Khan Khilji, Senior Unit Manager Assistant Branch Manager

143
Khairpur Branch Lahore Capital Branch Lahore Garden Branch Larkana Branch Multan Pioneer Branch Nawabshah Branch
Kutchery Road, Khairpur. 18-C, 3rd Floor, Commercial Zone, Liberty 2nd Floor, Garden Heights, 1st Floor, Bukhari Shopping Centre, 1st Floor, Rajput Commercial Centre, Plot No.B-599, 1st Floor,
0243-554016, 0243-714336, 0243-714337, Market, Gulberg-III, Lahore. Abick Block, New Garden Town, Lahore. Station Road, Larkana. Tareen Road, Multan. Opposite Al Karim Hotel,
0243-714330 042-35712632, 042-35789755, 042-35941850-1,2,3,4 074-4057434-5,6,7 & 074-4046700, 061-4500911-12,13,14,15,16,17,18,19,20 Katchery Road, Nawabshah.
Jamaluddin, Assistant Branch Manager 042-35789552, 042-35789554, Nasir Ahmed, Assistant Branch Manager 074-4046702 Kashif Aslam, Assistant Branch Manager 024-4372807-08, 024-4365033,
042-35712632, 042-35711279, Shahzado Mal, Branch Manager Abdullah M. Ghumro, Branch Manager
Khanpur City Branch 042-35789782, 042-35789550, Lahore Gulberg Branch Multan Cantt Branch
Iftikhar Hassan, Senior Branch Manager Layyah Branch Naudero Branch
Model Town B, 18-C, 1st Floor, Commercial Zone, 1st Floor Rajput Commercial Centre Taren
Near DSP Office, Khanpur. Liberty Market, Gulberg-III, Lahore. Opposite Bayco Petrol Pump, Road Multan Station Road, Upon Dr. Muhammad Khan
Lahore Central Branch
0685955808, 0685576809, 042-35789631-2,3, 042-3-5716075, Chobara Road, Layyah. 0614500911-12,13,14,15,16,17,18,19,20 Clinic, Naudero, Dist. Larkana.
0685577809 18-C, 1st Floor, Commercial Zone, Syed Mehdi Raza Zaidi, 0606-410524-25, 0606-411802-3,4 Mohammad Abid Raza Shah, 0333-3208981
Waqar Habib, Assistant Branch Manager Liberty Market, Gulberg-III, Lahore. Assistant Branch Manager Shafquat Ali Rao, Senior Branch Manager Branch Manager Shahzado Kosar Ali, Unit Manager
042-35712632, 042-35789755,
Kot Ghulam Muhammad Branch 042-35789552, 042-35789554, Lahore Metropolitan Branch Lodhran Branch Muridke Branch Okara Branch
Opposite Old Mukhtiar Kar Office Samaro 042-35712632, 042-35711279, 18-C, 1st Floor, Commercial Zone, Al Noor Plaza, Uper Story National Bank of Bangla Stop Near J.S Bank 1st Floor Bank Islami M.A Jinnah Road Okara.
Road Kot Ghulam Mohammad Bhurghri. 042-35789782, 042-35789550, Liberty Market, Gulberg-III, Lahore. Pakistan Supper Chowk Lodhran Main G.T Road Muridke. 0300-6951902
0233863157-8,9 Imran Saleem, Assistant Branch Manager 042-35716072-4 0622887338,39,40,41,42,43,44 and 04237166065, 04237166065, Arsalan Haider, Unit Manager
Arjun, Unit Manager Zahid Ali Raza, Senior Branch Manager 0622887348,49,50 Bilal Iqbal, Unit Manager
Lahore City Branch Peshawar Branch
Imtiaz Hussain, Group Manager Jaffar Muhammad, Unit Manager
Khushab Branch 18-C, 3rd Floor, Commercial Zone, Muzaffarabad Branch
Suite No. 1,2,3, Azam Tower,
Liberty Market, Gulberg-III, Lahore. Lahore Pioneer Branch Liaquat Pur Branch
Upper Story Nadra Office Near Katha Chowk 1st Floor, Allied Bank, 2nd Floor, Arbab Road,
Sargodha Road Khushab 042-35712632, 042-35789755, 18-C, 3rd Floor, Commercial Zone, 1st Floor Karim Center Kachi Main Branch, Bank Road, Muzaffarabad. Stop Jamrood Road, Peshawar.
0303- 3361565 042-35789552, 042-35789554, Liberty Market, Gulberg-III, Lahore. Mandi Liaquat pur. 05822-442080-1 091-5852922-23, 091-5845609,
Muhammad Muhktar, Senior Unit Manager 042-35712632, 042-35711279, 042-35712632, 042-35789755, 0300-6248655 Maqbool Ahmed Kiani, Branch Manager 091-5843404, 091-5701609,
042-35789782, 042-35789550, 042-35789552, 042-35789554, Mohammad Aslam, Unit Manager Syed Jameel Abbas, Senior Unit Manager
Khaplu Branch 042-35711273 042-35712632, 042-35711279, Muzaffargarh Branch
Shahid Iqbal Bhatti, Group Manager 042-35789782, 042-35789550, Mangowal Gharbi Branch Pishin Branch
Near MCB Bank Main Bazar Skardu Baltistan Jandeel Plaza, First floor Ghang Road,
05815-450941 Syed Abuzer Gilani, Assistant Branch EFU Life Tulla Plaza Near Police Chowki Muzzafar Garh Office No-4, 1st Floor S,
Lahore Civic Branch
Muhammad Ayaz Ali, Senior Unit Manager Manager Mangowal Gharbi District & Tahsil Gujrat. 0662422944 Salahuddin Plaza Qazi Housing Scheme
43-L, 1st Floor, 0345-6938861 Shazad Ahmed, Assistant Branch Manager Band Road Pishin
Karakurum Branch M.M. Alam Road, Gulberg-II, Lahore. Lahore Ravi Branch
Shahzada Waqas Ahmed, Unit Manager 0333-7855510
042-35871235-6,7, 042-35716075, 43-L, 1st Floor, Mirpur AK Branch Mohammad Asif, Unit Manager
1st Floor, Dar Plaza, Nabi Bazar, Gilgit. 042-35716076, 042-35711560, Mandi Bahauddin Branch
05811459874, M.M. Alam Road, Gulberg-II, Lahore. 2nd Floor, Nishat Center,
042-35871238, 042-3558090, 042-35871235-6,7, 042-35716075, Pano Aqil Branch
Mohammad Nazir, Assistant Branch Manager 042-35871239, 042-35871240, 2nd Floor, Ayub Plaza, Opp. DHQ Hospital Mirpur AK
042-35716076, 042-35711560, Upper National Bank of Pakistan, 058-27446477-88, 0321-2415420 1st Floor Opn Khushali Bank, Baiji Road,
042-35871241 042-35871238, 042-3558090,
Kandhkot Mahmood Ahmed, Branch Manager Katchary Road, Mandi Bahauddin. Tariq Mehmood, Senior Branch Manager Pano Aqil, Taluka Pano Aqil, Dist. Sukkar.
042-35871239, 042-35871240, 0546-520955-6, 0546-520855, 071-5690291, 0315-3433161
Office no # 03 Shah Muhammad Malik Plaza 042-35871241 Mian Chanuu Branch
Opp Honda Showroom Mandi Road, Lahore Crescent Branch 0546-520755 Shafi M. Ghoto, Senior Unit Manager
Tanveer Ahmed Khan, Regional Manager Abid Mehmood, Assistant Branch Manager
Kandkot 18-C, 1st Floor, Commercial Zone, Tulamba Road Oppsit Sufdar
Quetta Branch
0722-570685 Liberty Market, Gulberg-III, Lahore. Lahore Shadman Branch Nursery Doctor Complex 1st Floor.
Mianwali Branch
Adnan M. Samejo, Senior Unit Manager 042-5716072-4 0335-9103103 1st Floor, Near Bank Alfalah,
18-C, 1st Floor, Commercial Zone, Muhammad Plaza 1st Floor Opp Niazi Mohammad Sajid, Unit Manager M.A. Jinnah Road, Quetta.
Malik Azhar, Branch Manager Liberty Market, Gulberg-III, Lahore.
Lalamusa Branch News Agency Ballo Khail Raod Mianwali 081-2865509-13 &
042-35789631-2,3, 042-3-5716075, 0301-4750835 Mansehra 081-2822184
Shayan Center, Lahore Defence Branch
S.M.Raza Zaidi, Branch Manager Mureed Abbas, Assistant Branch Manager Imran Ahmed, Branch Manager
1st Floor, G.T. Road, Lalamusa. 2nd Floor, Garden Heights, 1st Floor Al-Fateh Shopping Center, Opposite
053-7517272, 053-7515656, Abick Block, New Garden Town, Lahore. Lahore Shaheen Branch Radio Station Mansehra Road, Abbottabad
Mirpurkhas City Branch Quetta Chilton Branch
053-7517441, 053-7517445, 042-35941850-1,2,3,4 0992341978,0992403697, 0992334254,
Adnan Ghazanfar, Branch Manager 2nd Floor, Garden Heights, Opp: Gama Stadium, Saqib Hussain, Senior Unit Manager 1st Floor, Shaheen Views,
Mian Kashif Naseer, Senior Branch Manager Abick Block, New Garden Town, Lahore. Main Hyderabad Road, Mirpukhas-69000. Model Town, Hali Road, Quetta.
Lahore Cantt Branch 042-35941852 0233-863157-8,9 Mirpur Mathelo 081-2841696, 081-2827787, 0812836537,
Lahore Fort Branch
Shahid Lazir, Senior Unit Manager Sharwan Kumar, Assistant Branch Manager 081-2841618, 081-2834825, 081-2834831,
43-L, 1st Floor, M.M. Alam Road, 43-L, 1st Floor, Mathelo Road Near Ghanta Ghar Mir Pur
Gulberg-II, Lahore. Mathelo. Suneel Kumar Matree,
M.M. Alam Road, Gulberg-II, Lahore. Lahore Star Branch Mirpurkhas Tharparker Branch
042-35871235-6,7, 042-35716075, 072-3663235, 0333-725365 Assistant Branch Manager
042-35871235-6,7, 042-35716075, 18-C, 1st Floor, Commercial Zone,
042-35716076, 042-35711560, 042-35716076, 042-35711560, Opp: Gama Stadium, Ali Hassan Rajput, Unit Manager
Liberty Market, Gulberg-III, Lahore. Quetta Model Branch
042-35871238, 042-3558090, 042-35871238, 042-3558090, Main Hyderabad Road, Mirpukhas 69000.
042-35871239, 042-35871240, 042-35716072-4 0233-863157-8,9 Naushero Feroze Branch 1st Floor, Shaheen Views,
042-35871239, 042-35871240, Kashif Hussain Malik,
042-35871241 042-35871241 Muhammad Fawad Faisal, Branch Manager DCO Office, Main Road, Model Town, Hali Road, Quetta.
Shoukat Ali, Assistant Branch Manager Assistant Branch Manager 081-2841696, 081-2827787, 081-2836537,
Moazzam Bashir Kamal, Naushero Feroze.
Assistant Branch Manager Multan City Branch 081-2841618, 081-2834825, 081-2834831,
0242-448661
1st Floor, Rajput Commercial Centre, Sarfraz Ahmed Qureshi, Senior Unit Manager Muhammad Javed, Senior Branch Manager
Tareen Road, Multan.
061-4500911-12,13,14,15,16,17,18,19,20
Syed Wazir Ali Zaidi, Branch Manager
M. Kashif Riffat, Senior Branch Manager

145
Quetta Prime Branch Rawalpindi Saddar Branch Sukkur Branch Toba Tek Singh Branch Tando Allahyar Wah Cantt Branch
1st Floor, Shaheen Views, 128- B, 2nd Floor, Din Plaza, Main Murree Ground Floor Bismillah, Near Qasim Park, Upper Story JS Bank, Farooq Road, Flat # 1 3rd Floor, Al Habib Plaza, Opp Civil Office # B-8, 2nd Floor,
Model Town, Hali Road, Quetta. Road, Near Chandni Chowk, Rawalpindi. Opposite Queen's Road, Sukkur. Toba Teck Singh. Hospital, Tando Allahyar Din Plaza Main GT Road Taxila.
081-2841696, 081-2827787, 081-2836537, 051-4427686, 051-4571485, 051-4571479 071-5622348, 071-5623168, 046-2511017-9, 046-2514615, Shazina, Senior Unit Manager 051-4536154
081-2841618, 081-2834825, 081-2834831, & 051-4571489,90,91,92,93,95 071-5627997, 071-5627069, 071-5627067, Muhammad Salman Zaheer, 0304-3237516 Munawar Khan, Senior Unit Manager
Mohammad Hanif Raza, M.Ashfaq Khan, Assistant Branch Manager 071-5622347, 071-5622304 Assistant Branch Manager
Assistant Branch Manager Zaheer Udddin Ghumro, Regional Manager Ubauro Branch Yazman Branch
Rawalpindi Westridge Branch Sherzaman Khan, Branch Manager Turbat City Branch
Near Shah Medical Center, EFU Life Assaurance,
Quetta Zarghoon Branch
128- B, 2nd Floor, Din Plaza, Main Murree 1st Floor, Allah Wala Market, G.T. Road, Ubauro. Bahawalpur Road, Mandi Yazman.
Sukkur City Branch
1st Floor, Near Bank Alfallah, Road, Near Chandni Chowk, Rawalpindi. Main Road, Turbat. 072-3688764-6 062-2702122-24
M.A Jinnah Road, Quetta. 051-4427686, 051-4571485, 051-4571479 Ground Floor Bismillah, Near Qasim Park, 085-2411718, 085-82411008-10 Adil Mehmood Samejo, Muhammad Boota, Senior Unit Manager
081-2865509-13 & & 051-4571489,90,91,92,93,95 Opposite Queen's Road, Sukkur. Ikhlaq Ahmed, Branch Manager Senior Branch Manager
081-2822184 Malik Amjid Mehboob, 071-5622348, 071-5623168, 071-5627997, Mumtaz Ali, Branch Manager
Amir Muhammad Jan, Senior Unit Manager Assistant Branch Manager 071-5627069, 071-5627067, 071-5622347, Thull City Branch
071-5622304 Usta Mohammad Branch
Main Kandhkot Road Thull, Near Sindh Bank
Rahim Yar Khan Branch Rohri Branch M Arif Junejo, Assistant Branch Manager Thull , Taluka Thull District Jacobabad. Near UBL - Bank,
Upper Story, JS Bank, Opp Bab - e - Karbala Gate, 072-2611134, 072-2611089, Jinnah Road Usta Mohammad
Sukkur Civic Branch
Near Niaz Clinic, City Chowk, RYK. G-T Road Rohri. Sunjay Kumar, Senior Unit manager 0335-3537127
068-5876735, 068-5871380, 068-5881380, 0715810664 Ground Floor Bismillah, Near Qasim Park, Muhammad Hafeez, Unit Manager
068-5880034, 068-5886819 Ghulam Mustafa Mughal, Opposite Queen's Road, Sukkur Thatta Branch
Abdul Jabbars, Senior Branch Manager Senior Unit Manager 0715622348,0715623168,0715627997, Vehari Branch
Shah Kamal Mohallah, Ward No. 4,
0715627069,0715627067,0715622347, Near Al Hamd Book Center Opposite House # 2/H Block - H,
Rajanpur Branch Ranipur Branch 0715622304 Star Press Thatta. Near Govt Girls High School
Ramzan Karim Complex, National Highway Ranipur Opp. Masha Allah Tariq H. Khosa, Senior Unit Manager 0298-550131, 0673363512
D. G. Khan Road, Rajanpur. Petrol Pump Tehsil, Sobhodero Dist Khairpur Abid Hussain, Assistant Branch Manager Muhammad Kamran, Unit Manager
Shikarpur Branch
068-5876735, 068-5871380, 0243-630290,
068-5881380, 068-5880034, 068-5886819, Safdar Hussain Qureshi, Senior Unit Manager Near Tanveer Mahar Autos,
Wahid Javed, Senior Unit Manager Main Station Road Shikarpur
Sanghar Branch 03025293869
Rawalpindi Branch Zuhaib Ahmed, Unit Manager
House # 962/42,
20-B, 2nd Floor, North Star Plaza, Shah Latif Colony Hyderabad Road Sanghar.
Sahiwal City Branch
Rehmanabad Muree Road, Rawalpindi. 0333-2915046
051-4581364-5,6 & 051-4842002, Imtiaz Muhammad, Senior Unit Manager 1st Floor, Central Plaza, High Street,
Shahid Mehmood Awan, Branch Manager Sahiwal City.
Shahdad Kot Branch 040-4223201-5
Rawalpindi Cantt Branch Muhammad Rashid Latif, Group Manager
Civil Hospiital Chowk, Tunia Muhalla,
128- B, 2nd Floor, Din Plaza, Main Murree Shadakot, Dist. Qamber Shadadkot. Prince Khurram Inayat, Branch manager
Road, Nea r Chandni Chowk, Rawalpindi. 0334-2009716
Sahiwal Civic Branch
051-4427686, 051-4571485, 051-4571479 Fahad Hussain, Unit Manager
& 051-4571489,90,91,92,93,95 1st Floor, Central Plaza, High Street,
Numan Sabir, Branch Manager Sibi Branch Sahiwal City.
Opp. Qayyum Iron Store, Jinnah Road Sibi. 040-4223201-5
Rawalpindi Chandni Chowk Branch Ghulam Jelani, Assistant Branch Manager
0333-7801759
128- B, 2nd Floor, Din Plaza, Main Murree Naveed Ul Haq, Unit Manager
Sarai Alamgir Branch
Road, Near Chandni Chowk, Rawalpindi.
051-4427686, 051-4571485, 051-4571479 Sargodha Branch Awan Plaza 2nd Floor Office No -3,
& 051-4571489,90,91,92,93,95 1st Floor, 66-Civil Lines, GT Road Saraialamgir District Gujrat.
Saad Aslam Cheema, Senior Unit Manager Court Road, Khan Arcade, Sargodha. 0333-9513308
048-3725516-18 Yousaf Tashfeen, Unit Manager
Rawalpindi Rawal Branch
Akhtar Husnain Akhtar, Branch Manager
Sheikhupura Branch
128- B, 2nd Floor, Din Plaza, Main Murree
Road, Near Chandni Chowk, Rawalpindi. Sialkot Branch Office No. 4 - 2nd Floor Usman Center
051-4427686, 051-4571485, 051-4571479 2nd Floor, Shareef Plaza, Railway Road Sheikhupura
& 051-4571489,90,91,92,93,95 Near Sialkot Chamber of Commerce Building, 04235789631-3, 0423-5716075
Muhammad Afzal, Regional Manager Paris Road, Sialkot. Mohsin Gulzar, Unit Manager
052-9269855, 0524264017
Rawalpindi Royal Branch Sadiqabad
Zahid Khan, Branch Manager
128- B, 2nd Floor, Din Plaza, Main Murree Al- Falah Town Main street near Majeeda
Road, Near Chandni Chowk, Rawalpindi. Chowk Sadiqabad
051-4427686, 051-4571485, 051-4571479 068-5702929 / 068-5801919
& 051-4571489,90,91,92,93,95 Khalid Javid, Senior Unit Manager
S.M. Ali Shafaat Bukhari,
Senior Unit Manager

147
EFU Life Window Takaful - Offices
Takaful Bahawal Nagar Branch Takaful Karachi Jinnah Branch Takaful Peshawar Branch
Masjid Plaza, Jail Road, A.34, 1st Floor, Hafeez Center, Suit # 1,2,3 2nd Floor Azam Town,
Opposite Girls High School, City Chowk Shahre-e-Faisal, Karachi. Jamshed Road, University Town, Peshawar
063-2272124, 2272127, 31 021-34386340-44 091-5852921-3
Abdul Khaliq, Takaful Team Manager Mohammad Arshad Siddiqui, Syed Shahid Ali Shah,
Takaful Branch Manager Takaful Assistant Manager
Takaful Bahawalpur Branch
Takaful Karachi Meezan Branch Takaful Quetta Branch
14-C/4, Model Town,
Shabbir Shaheed Road, A.34, 1st Floor, Hafeez Center, Shahre-e- Plot Number 7-A Model Town Quetta
Near State Bank, Bahawalpur Faisal, Karachi. 021-34386340-44 Cantt-Quetta
0622-886847 Ayoob Khan, Takaful Zonal Manager 081-2833338-9, 2833321-22,
Rashid Mehmood, Takaful Branch Manager 2822223, 2822228.
Takaful Karachi Nursery Branch Najm-ul-Saqib, Takaful Branch Manager
Takaful Chichawatni Branch
A.34, 1st Floor, Hafeez Center, Takaful Rahim Yar Khan Branch
College Road Opposite Girl's College Rafique Shahre-e-Faisal, Karachi.
Taf Tile 2nd Floor Chichawatni. 021-34386340-44 Alhamrah House,1st Floor,
0333-6542393 Arshad Bin Ahmed, Takaful Branch Manager 20-A, Model Town, Rahim Yar Khan.
Muhammad Afzal, Takaful Assistant Manager 068-5887126
Takaful Lahore Branch Manzoor Ali, Takaful Assistant Manager
Takaful Dera Ismail Khan Branch
Al Oadeer Heights, 1- Babar Block, Takaful Rawalpindi Branch
Huzaifa Trade Center, 1st Center East Suit # 1 & 2 Mezzanine Floor,
Circular Road, Near Topan Wala Gate, New Garden Town, Lahore Feroze Sons Plaza 3rd Floor 32,
Dera Ismail Khan 042-35832651-7 Hospital Road Rawalpindi.
0300-5791811 Kh. Mujib-ur-Rehman, 0331-7921460
Muhammad Ijaz Khan, Takaful Senior Regional Manager Imran Ahmed, Takaful Team Member
Takaful Assistant Manager
Takaful Lahore City Branch Takaful Sahiwal Branch
Takaful Faisalabad Branch
Al Oadeer Heights, 1- Babar Block, Plot No # 15, Block- E, Street No-30,
Aamir Plaza, 2nd Floor, Kohe-e-Noor City, Suit # 1 & 2 Mezzanine Floor, Housing Scheme ll Disstrict Sahiwal.
College Road, Faisalabad. 042-35832651-7 0300-9696211
041-8718465-66 Muhammad Akbar Munir, Mohammad Jaffar, Takaful Branch Manager
Ghulam Haider, Takaful Regional Manager Takaful Zonal Manager
Takaful Sargodha Shaheen Branch
Takaful Haripur Branch Takaful Lahore Fort Branch
37-C, Satellite Town Chowk,
1st Floor, Al Hamra Complex, Al Oadeer Heights, 1- Babar Block, 1st Floor, Ubaid Plaza, Sargodha.
Near Askari Bank, main GT Road Haripur. Suit # 1 & 2 Mezzanine Floor, 048-3252684-86
0995-627396, 0995-627394 New Garden Town, Lahore. Mazhar Iqbal, Takaful Branch Manager
Muhammad Attique, 042-35832651-7
Takaful Branch Manager Muhammad Imran, Takaful Branch Manager Sukkur Takaful Branch
Takaful Hyderabad Star Branch Takaful Mian Channu Branch F/33- 4/7, Upper Dow Lab, 2nd Floor,
Barrage Road Sukkur
Plot No.B3-19/1, Block B-3, First Floor, Allied Bank Near T, Chowk 071-5613401, 5
Autobhan Road, Latifabad, Hyderabad G.T Road Mian Channu Asmatullah Tunio, Takaful Regional Manager
022-3411176-79 0300-3446616
Muhammad Umer Keerio, Aziz Ur Rehman, Takaful Branch Manager Takaful Thatta Branch
Takaful Branch Manager Bukera Building, 1st Floor, Bata Shop,
Takaful Multan Civic Branch
Takaful Jhang Branch Opposite HBL Bank, Thatta.
2nd Floor Golden Heights 0298-550035
Upper Floor, MCB Ghalla Mandi Branch, Opp High Court, Multan. Abdul Sattar Khushik,
Toba Road, Jhang 061-4587120 Takaful Assistant Manager
047-761005 Qudrat Ullah, Takaful Branch Manager
Muhammad Yousaf, Takaful Team Manger Takaful Toba Tek Singh Branch
Takaful Multan Branch
Takaful Karachi Falcon Branch Upper Floor, UBL Bank,
2nd Floor, Golden Heights, Shorkot Road, Toba Tek Singh.
23/F, Muhammad Ali Co - Operative Opp. High Court, Multan Cantt, Multan. 0462-514080
Housing Society Karachi. 061-4587120 Muhammad Shahid Rafique,
021-34550488 Qazi Mehboob Rizwan Aslam, Takaful Branch Manager
Muneer Ahmed, Takaful Branch Manager Takaful Regional Manager
Takaful Karachi Hatf Branch Takaful Mirpur AK Branch

A.34, 1st Floor, Hafeez Center, Plot No # 73, K. K Plaza C-3,
Shahre-e-Faisal, Karachi. Near UBL Bank Fazal Chowk,
021-34313001-04, 021-34313006 Mirpur Azad Kashmir
Kinan Amin, Takaful Assistant Manager 05827-450116-20
Syed Iltija Husain Shah,
Takaful Branch Manager

151
153
15%
85%
Individual Life New
Family Takaful New Business

155
GROSS DEATH & 2 430
DISABILITY CLAIMS
5 YEAR SUMMARY
(Rupees in Millions)
1 640
787
1 640
606
530
ASSETS COMPOSITION
1 083
1% 2%
1 170
36%
289
326
1643
1163
1110
46%
794
844
3%
12%
Government Securities Shares and Mutual Funds

2012 2013 2014 2015 2016
Cash and Bank Deposits Other Fixed Income Securities
Current Assets Fixed Assets Group Benefits Individual Life

157
GROSS PREMIUM GROWTH
5 YEAR SUMMARY
(Group Benefits & Individual Life Regular Premium)
(Rupees in Billions)
20.28
17.72
15.67
13.82
11.71
GROSS PREMIUM
COMPOSITION
17.84
15.60
13.91
10%
18%
10.33
12.23
18%
2.44
2.12
1.77
1.59
1.38
55%
First Year Premium Single Premium

2012 2013 2014 2015 2016
Renewal Premium Group Benefits
Group Benefits Individual Life Regular Premium

E F U LIFE ASSURANCE LTD.
Bank Mandate Form
To,
The Share Registrar
EFU Life Assurance Ltd.
M/s Technology Trade (Pvt.) Limited
Dagia House, 241-C,Block-2, PECHS,
Off: Shahra-e-Quaideen, Karachi.
Sub: Bank Mandate for Dividend Warrants
1) Mr. / Ms / Mrs.______________________ S/o, D/o, W/o, Mr._____________________ hereby

authorize EFU Life Assurance Ltd. to deposit my dividend warrant directly to my Bank Account
when the cash dividend , if any, is declared by the Company in the below mentioned bank
account. I hereby further authorize company to update my particulars mentioned below in the
member register of the company.
(i) Shareholder's detail
Name of the Shareholder
Folio No. / CDC Participants ID

A/C No.
CNIC No. *
Passport No. (in case of foreign
shareholder) **
Land Line Phone Number
Cell Number
E-mail address
(ii) Shareholder's bank detail

Title of the Bank Account
Bank Account Number
Bank's Name,
Branch Name and Code No.
Branch Address
2) It is stated that the above-mentioned information is correct, that I will intimate the changes
in the above-mentioned information to the company and the concerned Share Registrar as
soon as these occur.
Signature of the Shareholder Date
*Please attach attested photocopy of the CNIC.

**Please attach attested photocopy of the Passport.

Eful Annual 2016

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Table of Contents

Introduction Key Financial Data for the Last Six Years 65

2 EFU LIFE ASSURANCE LTD

Managing Director & Chief Executive Managers

Senior Managers Bancassurance

26 EFU LIFE ASSURANCE LTD

Audit Committee Claim Settlement Committee Chairman Rating

Legal Advisor Main Office

28 EFU LIFE ASSURANCE LTD

The Company Secretary

Technology Trade (Pvt.) Ltd.

Stock Exchange Listing

30 EFU LIFE ASSURANCE LTD

Statement of Business Practices

Whistle Blowing Policy

Procedures Adopted for Quality Assurance of Products / Services

36 EFU LIFE ASSURANCE LTD

MD's Performance Review

38 EFU LIFE ASSURANCE LTD

40 EFU LIFE ASSURANCE LTD

42 EFU LIFE ASSURANCE LTD

44 EFU LIFE ASSURANCE LTD

Status of previous approval for investment in associated company. Energy Conservation

Policy for safety of records of the company:

Disclosure of IT Governance Policy

46 EFU LIFE ASSURANCE LTD

48 EFU LIFE ASSURANCE LTD

50 EFU LIFE ASSURANCE LTD

52 EFU LIFE ASSURANCE LTD

54 EFU LIFE ASSURANCE LTD

56 EFU LIFE ASSURANCE LTD

58 EFU LIFE ASSURANCE LTD

Cash and cash equivalent

Net cashflow from financing Activity

Net cashflow from investing Activity

60 EFU LIFE ASSURANCE LTD

ASSETS & LIABILITIES GROSS / NET PREMIUM

Assets Liabilities Gross Premium Net Premium

62 EFU LIFE ASSURANCE LTD

Share Price Sensitivity Analysis (Rupees ‘000)

100 Write back / (Provision) for doubtful debts

Capital contribution from Shareholders' fund 89 256

Analysis Of Variation In Results

Reported In Quarterly Accounts

2 000 000 BALANCE SHEET

64 EFU LIFE ASSURANCE LTD

Six years summary 2016 2015 2014 2013 2012 2011

66 EFU LIFE ASSURANCE LTD

GROSS PREMIUM CASH GENERATED / UTILIZED

Operating activities Investing activities Operating activities Investing activities

68 EFU LIFE ASSURANCE LTD

Vertical Analysis 2014 2013 2012 2011

% increase / (decrease) over preceding year

Revenue & Profit & Loss Account

70 EFU LIFE ASSURANCE LTD

Cost Government Shareholders Cost Government Shareholders

72 EFU LIFE ASSURANCE LTD

Profile of Shariah Advisor Dated: February 14, 2017 Managing Director

74 EFU LIFE ASSURANCE LTD

76 EFU LIFE ASSURANCE LTD