Despite the Covid 19 Pandemic, the Company holds a leading position in the 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 a final cash dividend of Rs. 5.50 per share (i.e. 55%) and already paid three interim cash 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. This achievement was made possible by years of experience in serving the needs of valued and loyal customers. The Company’s Balance Sheet is the strongest in the industry, and I am sure the Company will continue to maintain its leadership 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 a Stable Outlook for both. 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 a rating of AA+ with a 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.