Daily Times

LAHORE: 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 % and combined ratio of 80 % for the year. Currently, dividend income and capital gains of insurance companies are taxed at 30 % unlike other sectors which are taxable at 15 % 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 at 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% each, making total distribution for the year to 100% (i.e. Rs 10.00 per share).

Published in Daily Times, February  21^st 2018.