Click for Insurance Companies & Insurance Agents in Pakistan
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Performance of Life Insurance Companies Source
BOI |
| The total
premium collected by the five life insurance companies during
the year ended December 31, 2001 stood at Rs. 8,060 million,
indicating a 7.6 percent increase over the previous year. Of
this, Rs. 1,392 million represented first year premium
collection by life insurance companies, which represented an
increase of 9.35 percent from last year. Group premium also
registered a significant growth of 19.27 percent to Rs.
1,598.90 million during the year. On the whole, the
state-owned SLIC remained the dominant player in the life
insurance market with a share of 86.2 percent in terms of
premium. The market share of the five life insurance
companies, in terms of premium collected during the calendar
year 2001, is presented in the table below. |
Premium of Life
Insurance Companies
(January 1, 2001 – December 31, 2001 |
|
|
|
(Rs. in Million)
|
|
Company
|
First Year Premium
|
Renewal Premium
|
Single Premium
|
Group Premium
|
Annuity
|
Total Premium
|
| SLIC |
1,121.14
|
4,564.56
|
0.04
|
1,256.48
|
2.51
|
6,944.73
|
| Commercial Union(CU) |
71.74
|
113.48
|
-
|
178.09
|
-
|
363.31
|
| EFU Life Assurance Limited
|
151.73
|
270.85
|
34.95
|
105.15
|
-
|
562.68
|
| American Life Insurance Company (ALICO)
|
39.83
|
61.71
|
0.72
|
47.21
|
-
|
149.47
|
| Metropolitan Life Assurance Company
|
7.80
|
20.19
|
-
|
11.97
|
-
|
39.96
|
| Total |
1,392.24
|
5,030.79
|
35.71
|
1,598.90
|
2.51
|
8,060.15
|
|
|
|
|
Performance of General Insurance Companies |
|
General
insurance business in Pakistan depicts an oligopolistic composition with
10 companies accounting for almost 83 percent of the total private
sector general insurance business. The total gross direct premium
underwritten by general insurance companies, excluding the state-owned
NICL, during the calendar year 2001 was Rs. 10.9 billion. Of this
amount, Rs. 9.1 billion was attributable to the 10 largest companies
while remaining gross direct premium of Rs. 1.8 billion was underwritten
by the remaining 41 companies. Premium underwritten by NICL for the year
ended December 31, 2001 amounted to Rs. 2.3 billion.
In
Pakistan, general insurance companies underwrite four main classes of
business, i.e., fire, marine, motor and miscellaneous. The premium
earned by general insurance companies in each class of business during
the year ended December 31, 2001 is presented in the table below.
Paid-up
Capital and Gross Premium of General Insurance Companies
(January 1, 2001 – December 31, 2001) |
|
(Rs. in Million)
|
|
S.No.
|
Company
|
Paid-u p capital
|
Premium
|
|
Fire
|
Marine
|
Motor
|
Miscellan eous
|
Total
|
|
1.
|
Adamjee Insurance |
543.20
|
1,292.70
|
796.94
|
1,461.15
|
682.50
|
4,233.28
|
|
2.
|
EFU General Insurance Limited
|
170.00
|
628.92
|
350.85
|
881.59
|
513.07
|
2,374.43
|
|
3.
|
New Jubilee Insurance (NJI)
|
209.37
|
148.94
|
119.29
|
175.30
|
331.63
|
775.16
|
|
4.
|
Premier Insurance Company
|
115.44
|
178.46
|
51.83
|
69.47
|
26.84
|
326.60
|
|
5.
|
CGU International |
-
|
77.07
|
83.61
|
121.63
|
33.59
|
315.90
|
|
6.
|
New Hampshire Company |
240.71
|
46.17
|
30.11
|
202.26
|
18.42
|
296.96
|
|
7.
|
Habib Insurance Company Limited
|
75.00
|
105.62
|
51.89
|
59.23
|
25.36
|
242.11
|
|
8.
|
Askari General Insurance
|
76.04
|
22.05
|
37.45
|
98.97
|
54.17
|
212.64
|
|
9.
|
Royal & Sun Alliance |
-
|
83.34
|
26.37
|
49.80
|
17.01
|
176.52
|
|
10.
|
East West Insurance Company Limited
|
101.63
|
62.56
|
14.96
|
43.98
|
20.17
|
141.67
|
|
11.
|
Remaining 41 Companies |
-
|
634.50
|
414.27
|
460.18
|
316.12
|
1,825.07
|
| |
Total |
|
3,280.3 3
|
1,977.57
|
3,623.56
|
2,038.88
|
10,920.34
|
|
|
|
|
Under the
Insurance Ordinance, 2000, general insurance companies are required to
raise their paid-up capital to Rs. 50 million by December 31, 2002 and,
subsequently, to Rs. 80 million by December 31, 2004, failing which the
companies would not be permitted to continue their operations. The
minimum paid-up capital requirement under the repealed Insurance Act was
Rs. 1.5 million. The enhanced capital requirement is likely to usher in
consolidation in the insurance sector, as under-capitalized companies
would either have to merge together to meet the regulatory requirement
or opt for an orderly exit. At present, a few cases of mergers and
acquisition are in process. Consolidation through mergers and
acquisition is expected to result in fewer but financially stronger
insurance companies, which will have better Claims Paying Ability (CPA)
and higher solvency margins. |
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