TC Mar-Apr 2021 Issue

TRADE CHRONICLE
EFU General Insurance Limited
Annual Financial Statement
The Board of Directors of EFU General
Insurance Limited approved the annual
financial statements for the year ended
31 December 2020. Despite the Covid
19 Pandemic the Company holds a
leading position in non-life insurance
business. It created another history
by becoming the first company to
underwrite premiums (including Takaful
Contributions) of 22.6 billion.
The underwriting profit for the year was
Rs. 739 million as compared to Rs.
505 million in the preceding year i. e.
increase by 46%. The after tax profit
was Rs. 2,371 million (earning per
share of Rs. 11.85). The market value
of investments and property increased
from Rs.28 billion in the preceding year
to Rs. 30 billion. The Board of Directors
recommended final cash dividend @ of
Rs. 5.50 per share (i.e 55%) in addition
to already paid three interim cash
EFU General –Dividend disbursed within
two working days after approval
At the Annual General Meeting held
on March 31, 2021, the shareholders
approved the annual financial
statements of the Company and Final
Dividend of 55 % thereby making total
dividend payout of Rs.10 for the year
2020 (including three interim dividends
of Rs. 1.50 per share already paid).
UBL posts strong profits of over
Rs34bn in 2020
UBL reported profit after tax of Rs
20.9 billion for the financial year ended
2020, which was 9% higher than 2019.
These results were delivered by the
highly dedicated UBL team which has
worked with the utmost discipline and
perseverance despite the challenges
from Covid-19.
The Bank maintained strong payouts to
shareholders, declaring dividends of Rs
14.7 billion for the year 2020 (Rs 12.0
per share). The Bank’s capital position
remains strong and provides a solid
foundation to support future business
expansion. The Capital Adequacy
Ratio (CAR) was measured at 24.4%
as at December 31, 2020, an excess
of 11.9% over the applicable minimum
regulatory requirements.
UBL maintains one of the largest
dividends of Rs. 1.50 per share
i.e 15% in each quarter, making
total distribution for the year to
100 % (i.e Rs. 10.00 per share).
Director Mr. Rafique R. Bhimjee
commended the Company’s
performance for the year and stated
that the growth in premiums in 2020
was remarkable as it was achieved
despite Covid 19 pandemic. reduced
vehicle production and lesser imports.
This achievement was made possible
by years of experience in serving
the needs of the valued and loyal
customers. The company’s Balance
Sheet is strongest in the industry and
I am sure company will continue to
maintain its lead position.
The Company is rated by A. M. Best,
the world’s specialized insurance
rating agency and has assigned
Financial Strength Rating of “B+” and
a Long-Term Issuer Credit Rating of
“bbb-” with Stable Outlook for both.
The Company
held leading
position in nonlife
insurance
business. It created another history
by becoming the first company to
underwrite premiums (including Takaful
Contributions) of Rs. 22.6 billion.
The underwriting profit for the year
was Rs. 739 million and the after tax
networks in Pakistan.
The Bank serves over
10 million customers
nationwide, through
its footprint of 1,356 branches,
including 100 Islamic branches,
1,442 ATMs and over 35,000
“UBL Omni” dukaans. The
network is well supported by our
innovative and transformative
UBL Digital app serving over 1.5
million customers today.
Shazad G Dada, President
and CEO of UBL said, “Despite
the challenges brought about by the
pandemic, UBL delivered solid results.
Our strong balance sheet gives us
the foundations for future growth. We
will build on our award-winning digital
proposition, introducing innovative
banking solutions. Our focus is on
enhancing performance across our
core businesses and building greater
operational efficiencies and agility
The Company is also rated by two
national rating agencies i.e. VIS Credit
Rating Company Ltd. and Pakistan
Credit Rating Agency. Both the rating
agencies have assigned rating of AA+
with stable outlook.
Chairman Mr. Saifuddin Zoomkawala
commented on the Company’s
performance and stated that this result
is because the Company is managed
by the best insurance professionals in
the country and continuous investment
in people, systems and processes.
profit was Rs. 2,371 million (earning per
share was Rs. 11.85).
The Final Cash Dividend 2020 @ Rs.
5.50 per share approved at Annual
General Meeting held on March 31,
2021 has been credited directly into
the designated bank account of the
shareholders on 2nd April 2021 i.e.
within 2 working days of Annual General
meeting.
across the organization. I am proud
of the way our people have shown
great resilience to maintain the highest
level of customer service during the
pandemic. They are our greatest asset
and we will continue to invest in their
development and wellbeing. Customer
centricity is at the heart of everything we
do, and we are committed to providing
market leading services to our evergrowing
customer base.”
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 35