EFU creates history by writing premium of over Rs20 billion

KARACHI: In the year 2017, EFU General created history by becoming the first company by writing premium (including Takaful contribution) of over Rs. 20 billion.

The Board of Directors of the Company at its meeting held on 14th February 2018 approved the Annual Accounts for the year ended 31 December 2017. The after tax profit of the Company was Rs. 2,344 million as against Rs. 2,392 million last year. The earning per share for the year was Rs. 11.72 as against Rs. 11.96 in 2016. The underwriting result for the year was Rs. 1.6 billion as compared to Rs. 1.79 billion last year with claim ratio of 39 percent and combined ratio of 80 % for the year.

Currently, dividend income and capital gains of insurance companies are taxed at 30 percent unlike other sectors which are taxable at 15 percent on Dividend Income and variable rates of tax on Capital Gains depending on the holding period of the security. The insurance companies till tax year 2016 were taxed like all other corporates. This higher incidence of tax has adversely impacted profitability of insurance companies.

In this regard, the Insurance Association of Pakistan has appealed the Advisor to Prime Minister of Pakistan for Finance, Revenue and Economic Affairs to bring insurance industry at par with the corporate sector.

The Board of Directors declared the final cash dividend @ of Rs. 6.25 per share i.e 62.50 % in addition to already paid three interim cash dividends of Rs. 1.25 per share i.e 12.50 percent each, making total distribution for the year to 100 percent (i.e Rs. 10.00 per share).***