Strategy Session 2025

Strategy Session 2025. 1.

Table of Contents. Human Resource Reinsurance Revenue Summary Property Motor Marine and Transport Miscellaneous Information Technology Corporate & Secretarial.

HR Structure. 3.

Employees – Zone wise & Category wise Headcount. Zone Wise Category Wise Zone Headcount % Category Headcount % Head Office 317 26% Admin 685 57% South Zone 614 51% Marketing 247 21% North Zone 271 23% Staff 270 22% Grand Total 1202 100% Grand Total 1202 100%.

Employees – Head Office. 5.

Employees – South Zone Including 2024 & 2023 Gross Written Premium.

Employees – North Zone Including 2024 & 2023 Gross Written Premium.

Organizational Restructuring. To strengthen our operational and strategic capabilities, the following key positions were inducted: Divisional Head of Multan. Divisional Head of Lahore. Divisional Head of Liberty Division. Head of Information Technology. IT Professionals specialized in Oracle Development and Database. Marketing & Corporate Communications Executives. Zonal Accountant in North Zone Building Maintenance Service Engineer. Operational Head of Jinnah Division. Operational Head of Rawalpindi Division..

Organizational Restructuring. 12 branches/units `have been merged.

Planned Talent Acquisition. Induction of Actuaries for Implementation of IFRS 17 compliance and Price Analysis. Searching for qualified Technical Resources to strengthen the Operations Department of Head Office, North Zone, and South Zone. Induction of new Sales and Marketing Executives in the North Zone and South Zone..

Employee Training & Development. In 2024, two employees attended Swiss Re Marine Intermediate Course in Zurich and Guy Carpenter Reinsurance Training in London. 7 employees have attended LUMS training. 4 employees attended a course in IBA. 29 employees attended the seminar in ICAP. Training and Development Budget.

Revised Medical OPD and IPD Policies to align with market/ insurance industry standards to ensure better employee healthcare benefits. Key updates: Family Coverage Expansion: All employees' spouses and children (under the age of 21) are now included under the health insurance policy. Enhanced Limits: The health coverage limits for employees have been increased according to their respective categories. Improved Hospital Room Charges: The daily room charges coverage has been significantly increased. Emergency Coverage: A one-day emergency stay will now also be covered under the policy. Congenital Coverage: Congenital birth defects shall be covered for all insured members under the Hospital Care benefit..

Reinsurance. 13.

TREATY STRUCTURE 2025. Total Capacity has increased to 30 billion from 26 billion on 30% MPL. Risk XOL limit has increased to 4 billion from 3.5 billion. Super Surplus limit has increased to 3 billion from 2.75 billion. Parallel Surplus limit has increased to 2 billion from 1.5 billion. Event XOL limit remains unchanged at 24 billion. Allocation of the first two layers: 50% to Risk XOL and 50% to the Structured Solution. Co-ins. : 50% of Treaty capacity and 25% if EFU participation < 25%. FAC - inward: 30% of Treaty capacity and 15% if EFU participation < 25%. Delay in start-up (DSU)/ Advance Loss of Profit (ALOP) sub limit has increased from 450 million to 1.35 billion..

A Structured Solution for a three-year agreement ensures annual savings of 220 million. First two layers Rate on line (ROL) has decreased from 78% to 62.5%. This agreement offers a fixed 62.5% Rate on Line (ROL) for three years, compared to the conventional Risk XOL at 78%. The Structured Solution rate is fixed at 8% for three years. 60% of the fund, amounting to 312 million, is withheld by EFU. In the first year, we plan to invest and maximize the utilization of these funds..

TREATY STRUCTURE 2025. Risk XOL PKR 4 billion. Super Surplus PKR 3 billion.

Structured Solution. Structured Solution. Structure Solution Recoverable Loss Annual Premium EFU Loss Participation @ 62.5% Claim Recovery Available Fund with EFU Reinsurance @ 40% Fund with EFU @ 60% Reinsurance Contribution from EFU 1 Year Loss # 1 - 208,000,000 312,000,000 - - - 312,000,000 - 520,000,000 - - - 312,000,000 Opening Balance +Fund 648,000,000 2 Year Loss # 1 300,000,000 224,000,000 336,000,000 187,500,000 0 112,500,000 535,500,000 Loss # 2 65,000,000 40,625,000 0 24,375,000 511,125,000 365,000,000 560,000,000 228,125,000 - 136,875,000 511,125,000.

TREATY STRUCTURE 2025. Live Case :Lucky Motor Corporation Limited Losses DOL: 02/01/2025..

Comparing Cost between 2024/2025. Book1.pdf - Adobe Acrobat Reader (64-bit).

TREATY STRUCTURE 2025. MAT(Marine Cargo, Aviation & Hull) Treaties.

TREATY STRUCTURE 2025. MAT(Marine Cargo, Aviation & Hull) Treaties.

TREATY STRUCTURE 2025. Miscellaneous Accident Treaties.

TREATY STRUCTURE 2025. Miscellaneous Accident & Bond Treaties.

Premium Cession 2024. PREMIUM Year 2024 Written Treaty Facultative EFU Net Fire 16,337,084,228 2,536,050,290 7,928,480,834 5,872,553,104 Engineering 10,730,698,473 645,142,512 8,299,269,612 1,786,286,349 Marine Cargo 2,528,314,133 298,494,423 149,425,839 2,080,393,871 Marine Hull 384,644,244 2,978,853 344,830,400 36,834,991 Motor 3,697,196,295 36,839,401 0 3,660,356,894 Misc. 1,883,090,612 203,799,672 466,646,836 1,212,644,104 Bond 226,989,897 53,386,045 0 173,603,852 Aviation 1,832,246,635 0 1,788,268,355 43,978,280 TOTAL 37,620,264,517 3,776,691,196 18,976,9242421,876 14,866,651,445.

EFU Expected Treaty Cost for the 2025. CONVENTIONAL Property Surplus Treaties 1,500,000 Property XOL Treaties 1,613,331 Terrorism Treaty 250,000 Marine XOL Treaties 220,000 Miscellaneous XOL Treaty 172,000 Bond Treaty 60,000 Motor XOL Treaty 34,000 Total 3,849,331 TAKAFUL Property QST & Surplus Treaty 900,000 Maine QST & Surplus Treaty 210,000 Miscellaneous QST Treaty 110,000 Motor XOL Treaty 52,000 Total 1,272,000.

TREATY STRUCTURE 2025 (TAKAFUL). TAKAFUL TREATIES Property Quota Share and Surplus Treaty limit increased to 3.13 billon from 2.8 billion for Fire business. 50% MPL include in Fire, and now the limit 6.25 billion for Fire. Marine Cargo Quota Share and Surplus Treaty limit increased to 1 billion from 800 million. Miscellaneous Quota Share limit remain unchanged at 250 million and top five Banks limit 900 million..

Takaful Premium Cession 2024. PREMIUM Year 2024 Written Treaty Facultative EFU Net Fire 1,033,112,444 665,596,502 330,292,653 37,223,289 Marine Cargo 225,975,081 180,988,435 0 44,986,646 Motor 1,714,772,846 27,402,058 0 1,687,370,788 Miscellaneous 234,996,000 135,552,149 20,986,381 78,457,470 Engineering 46,592,873 37,274,312 0 9,318,561 TOTAL 3,255,449,244 1,046,813,456 351,279,034 1,857,356,754.

Revenue Summary. 28.

Revenue Profile. Rupees in million. Description 2024 2023 Broker Driven /Fronting 20,363 21,600 Head Office 1,749 2,500 Agents 15,509 14,000 Total 37,620 38,100.

Major Group Premium Year 2024. Group Premium % Attock 2,308,331,082 6% Engro 2,109,661,194 6% Fauji 1,787,334,271 5% Lucky 1,593,506,615 4% CPEC 7,596,244,720 20% Others 22,225,186,635 59% Total 37,620,264,517.

CPEC Premium Year 2024. Client Gross Premium S K Hydro (Pvt) Limited 2,027,976,494 Thar Coal Block-1 Power Generation Company Pvt Ltd 1,615,435,639 Huaneng Shandong Ruyi Pakistan Energy (Pvt) Ltd 1,569,328,917 China Gezhouba Group Company Limited 1,511,779,598 Thalnova Power Thar (Pvt) Limited 361,895,417 Sino Sindh Resources (Pvt) Limited 213,574,508 Hydrochina Dawood Power (Private) Ltd 174,535,221 Power China - FWO JV - basha dam 108,429,458 China Civil Engineering Construction Corporation 13,289,468 Total 7,596,244,720.

Lahore Division – 2023/2024 Premium Comparison. Class 2023 2024 Difference Aviation 93,991,348 89,598,831 (4,392,517) Bond 17,447,644 8,786,386 (8,661,258) Engineering 239,690,757 263,960,120 24,269,363 Fire 269,908,019 258,285,032 (11,622,987) Marine 36,879,882 50,317,210 13,437,328 Miscellaneous 341,914,048 315,371,845 (26,542,203) Motor 116,516,822 163,711,719 47,194,897 Terrorism 64,323,489 59,267,192 (5,056,297) Grand Total 1,180,672,009 1,209,298,335 28,626,326.

Liberty Division – 2023/2024 Premium Comparison. Class 2023 2024 Difference Aviation - - Bond 988,003 1,130,823 14% Engineering 31,988,237 37,575,635 17% Fire 508,394,451 539,890,820 6% Marine 129,375,489 154,396,629 19% Miscellaneous 35,348,540 39,735,438 12% Motor 270,269,004 266,442,158 -1% Terrorism 10,181,849 88,736,697 772% Grand Total 986,545,573 1,127,908,200 14%.

Class 2023 2024 Difference Bond 538,627 178,200 (360,427) Engineering 63,565,866 35,556,950 (28,008,916) Fire 993,961,728 677,653,522 (316,308,206) Marine 63,210,936 58,619,773 (4,591,163) Miscellaneous 11,174,518 9,522,596 (1,651,922) Motor 48,398,227 50,964,090 2,565,863 Terrorism 35,464,792 29,362,614 (6,102,178) Grand Total 1,216,314,694 861,857,745 (354,456,949).

Property. 35.

Property Department -Some Strategic Goals. Strengthen and Expand our Project Insurance Team to cope with the ever changing trends of the Project Insurance. Find and attract Industry experts In order to stream line the processes in the Northern Zone we adopted following strategies which will continue in 2025 as well Appointed Operational Managers to manage clients and Divisions. Built Direct relations with business houses of Northern Zone. HO representatives to visit Northern Zone branches periodically to enhance working relations. Renewal Rating Matrix..

Motor. 37.

Business Analysis. Conventional and WTO Business Combined: Premium decreased by Rs. 298 M i.e. 5% Segment wise changes as follows:- Leasing Business : Decline of (23 %) Corporate Business: Growth of 0.1 % Other Clients: Growth of 19 % No of Vehicles has decreased by 18,373 (16%) 2024: 96,940 2023: 115,313 Segment wise loss ratio Leasing Business: 42 % (46% in 2023) Corporate Business: 48 % (53% in 2023) Other Clients: 45% ( 42% in 2023) The average settlement cost of accidental claims has increased by Rs. 3,500 per claim 2024: 58,500 2023: 55,000.

Business Comparison. Industry wise motor business loss ratio up to 3rd QTR 2024 Projection for 2025: In 2024, we observed a decline of -5.0% in Premium as compared 2023. There was a considerable decrease in the number of fresh vehicles due to several economic factors including: Substantial increase in prices of new and used vehicles Rise in Government duties. Decline in car financing/Ijarah business due to: Regulatory and policy restrictions on financing of vehicles However, considering the recent decline in interest rates, prices of new vehicles and positive outlook regarding inflation in the monetary policy statement of SBP we project a growth of 2 %-2.5% in 2025..

40. Motor Leasing Clients. Rupees in million.

Motor Industry analysis. Insurance Company For the nine month period ended September 30 , 2024 For the nine month period ended September 30 , 2023 Conventional Takaful Combined Conventional Takaful Combined EFU 3,195,597 1,309,047 4,504,644 3,308,303 1,434,438 4,742,741 TPL 2,388,306 1,527,289 3,915,595 2,021,794 1,170,896 3,192,690 Adamjee 2,607,357 772,558 3,379,915 2,721,927 796,596 3,518,523 Jubilee 1,772,658 623,779 2,396,437 1,566,439 591,614 2,158,053 Total 9,963,918 4,232,673 14,196,591 9,618,463 3,993,544 13,612,007.

Marine and Aviation. 42.

Target high risk shipments like movements for cargo from /to CIS counties. As Pakistan’s Port infrastructure grows, especially with the involvement of private players, consider offering coverages for private terminal operators, LNG Terminals, and port infrastructure. CGP transit business..

Miscellaneous. 44.

Synopsis. In order to explore new avenues of business we have taken following initiatives. 1. Exploring Trade Credit Risk Insurance a. To start with our existing textile clients b. To offer to all clients going forward i.e. non-textile as well c. Marketing Strategy is to sell through our branches for which we have circulated email and will conduct trainings in due course d. Clients to whom we have quoted so far are Rajby Industries, Pak Electron and Cotton Web 2. Cyber Insurance being the emerging line of business which we also intend to explore and grow. Our current clients are KPMG and UCH Power. Our target customers are: a. Banks and Financials Institutions b. Tech Companies c. Various industries like automobile, cement, textile, power plants.

Synopsis. 3. We are doing Crop and Livestock Loan Insurance in compliance with SBP’s Crop and Livestock Loan Insurance Scheme. Target market include: a. Banks/ Microfinance Banks b. NGOs/ Fertilizers companies c. Corporate Farms 4. Strategic Partnership with EFU Life. We have been developing new and innovative products in association with EFU Life for banks. 5. Financial Guarantee which we are issuing to Lucky Motors, we have experienced an increase in premium substantially from July 2024 mainly due to inclusion of their main product line i.e. Sportage..

Information Technology. 47.

Key Developments - 2024. Completed / Went Live: Mobile application (travel) and WhatsApp Chatbot for insurance customers. Initial development and testing of applications to digitize and automate EFU’s help desk management and audit functions. Developed new products to facilitate transactional / Home Insurance customers.

Key Development - 2025. In-progress / Under Development: Automation & Digitalization of Financial Process and Dashboards. Development of additional features to facilitate travel insurance customers Upgrade of the back-end Oracle infrastructure to reduce the transaction time for customers..

Cyber Security. 1. Incident Response & Logging Deficiencies Incident response plan exists but has not been tested recently (no documented tabletop exercises or real-time simulations). Tabletop Exercises can be conducted immediately. Lack of formalized forensic investigation procedures in case of a breach. Procedures provided by RA but not fully adapted on our side. No mention of automated log monitoring and analysis tools to detect threats in real-time. Some tools are in place but coverage is limited. The tools also need to be tuned out and a fully functional and operational version of SIEM needs to be put in place..