Annual Report Apr2006

1932
75 Years: Reaching this

milestone is a significant
accomplishment in the
life of any organization. It demonstrates the
strong culture and vision of EFU together with
the exceptional capabilities of the EFU
employees. And it brings home the fact that
we have a 75 year history of commitment to
customers, partners, employees and the
communities in which we operate. However,
the real importance of the occasion is not in
celebrating the past. Instead, we enter our 75th
year energized for the future as even a better
trustee, a better employer, a better partner and
a better citizen. The knowledge, experience, and
strength that we have built up over 75 years is
invaluable, and we will continue growing and
expanding, as always in the
spirit of caring and sharing.
2007
Contents
Statements under
02 We are focused
on our customers 11 Notice
of Meeting 27 Statement of
Changes in Equity 49 Section 52(2) of
Insurance Ordinance 2000
We possess Report of the

03 demonstrable
financial strength 15 Directors to
the Members 28 Statement
of Cash Flows 50 Pattern of
Shareholding
Key Financial
04 We are confident
about our future 19 Data for the
Last Six Years 29 Revenue Account
51 Group
Benefits-Offices
Statement of
Compliance with Statement
05 Quality Policy
20 the Code of
Corporate Governance
30 of Premiums 52 Individual
Life-Offices
Review Report to
06 Life at EFU Life 22 the Members on
Corporate Governance
31 Statement
of Claims
Form of Proxy
Statement
08 Company
Information 23 Auditors’ Report
to the Members 32 of Expenses
09 Management
24 Balance Sheet
33 Statement of
Investment Income
10 Committees
26 Profit and Loss
Account 34 Notes to the
Financial Statements
EFU LIFE ASSURANCE LTD Annual Report 2006

WE ARE FOCUSED ON OUR
CUSTOMERS
Our values give us a sharply defined customer focus which

attunes us finely to their needs. Our expertise in life insurance
empowers us to devise solutions that are timely, and tailored
to the requirements of the many and diverse segments of
the society we serve.
As a body corporate, we daily rededicate ourselves to winning

the loyalty of our customers, by being caring, satisfying, and
serving them beyond expectations. We achieve this by
listening keenly to our customers, creating new and better
products that answer their present and evolving needs.
By focusing on what we do best and doing it better tomorrow

than we did yesterday, we continue to create superior value
and prosperity for more and more customers across Pakistan.
All of this has made us the private sector’s largest Life
Insurance provider in Pakistan.
2 Annual Report 2006 EFU LIFE ASSURANCE LTD

WE POSSESS DEMONSTRABLE FINANCIAL
STRENGTH
Promises are given credence by the ability to keep them.

This holds true for all human activity.
The company has registered strong profitability in the last

few years which is expected to improve further given the
growth prospects of the industry. EFU Life is well positioned
to increase its business volumes on account of its dedication
to customer services, comprehensive product range, sizable
and effective distribution channels, and increasing use of
technology in its business.
The fact that EFU Life is the only Life Insurance Company
in Pakistan to have an Insurer Financial Strength rating of
A+ (stable) from JCR-VIS has established its strong financial
strength and has placed it in the forefront of Life Insurance
industry in Pakistan.
EFU LIFE ASSURANCE LTD Annual Report 2006 3

WE ARE CONFIDENT ABOUT OUR
FUTURE
The success of our past enables us to look ahead with

confidence. We live in exciting times, with major social
developments and shifts going on around us. Increase in
literacy, attainment of better and higher education among
more youth than ever before, far greater access to information
than available to preceding generations, the ever shrinking
global village and rapidly changing lifestyles characterize
our society.
In these momentous changes, we see an emerging number

of challenges and opportunities. We are confident that the
wisdom, creativity and commitment that our team daily
demonstrates will see us through the challenges of the
future with even greater success.
Our financial strength and single-minded management focus

enables us to take advantage of the growth trends that are
transforming our industry. We possess the means and the
will to execute our growth strategies from a position of
strength in an increasingly competitive market place. As with
our past, our future will also show the reality of our core
belief: commitment to customer interest and real long-term
value for all stakeholders.

QUALITY
POLICY
Our Vision
To make EFU Life the best Life Insurance Company, our
Clients will be the focus of everything that we do. We will
win their loyalty by caring, satisfying, and serving them
beyond expectations.
Our Values
For us Life Insurance is service to humanity, not just a business.
We abide by the highest principles of good conduct, moral
integrity and impeccable ethics.
Our Mission
We shall together build EFU Life into a dynamic and financially
sound institution by:
• Working together as a team

• Continually improving our client service
• Creating an empowered and self-fulfilling culture
• Developing innovative products
• Adopting leading technology

Life at EFU Life
Significant events during 2006.
<<
January
EFU Life launched an SMS-based service,

offering sales consultants information
support directly on their cell phone
allowing access to online information at
their fingertips. This was yet another step
towards improving customer services.
>>
February
<<
February EFU Life’s MDRT qualifiers attended a
meeting in Thailand called “MDRT
EFU Life and ABN AMRO signed an Experience”. The Million Dollar Round Table
agreement to provide life insurance (MDRT) is a group of top financial advisors
products to ABN AMRO customers. The in the global life insurance industry. We
agreement was signed by Mr. Taher G. are enriched by our team members who
Sachak, Managing Director & Chief continue to take us to greater heights every
Executive, EFU Life and Mir Nejib Rahman, year as the only insurance company of
Head of Consumer Banking, Pakistan with such a success story at the
ABN AMRO. MDRT. All 125 MDRT qualifiers were
present at the meeting, which was held at
the Bangkok convention centre.
>>
March
>>
April
This month marked the EFU Life annual sales
conference 2006. The theme was “Accelerate” EFU Life acquired a plot of land to construct
and it was held in Sheraton, Karachi. This EFU Life House in Karachi. The
conference brought together all of our important purpose-designed 8 storey building will
business contributors on one platform. Sales eventually house the company’s corporate
teams from all over Pakistan both from individual headquarters and would be an outstanding
life and group life were present. Together, addition to the city’s distinctive
achievements during 2005 were celebrated, and commercial buildings.
new strategies were formulated for the future.

>> >>
May
June
Training session in
progress at EFU Life’s Initiatives were taken to
Karachi office. The further reinforce our strong
company maintains relationship with our valued
a rigorous clients by introducing EFU
international Client Service call center.
standard training Customers can get connected
programme for its to the call center free
employees and of charge by dialing
sales team. 0800-33800.
>>
July
EFU Life signed a Bancassurance

agreement with Doha Bank Qatar. Under
this arrangement, Doha Bank will
distribute EFU Life’s savings products to
>>
non resident Pakistanis. EFU Life has
especially designed three products – Smart August
Savings Plan, Smart Education Plan and
Smart Retirement Plan to cater to the EFU Life achieved another milestone when a new and flexible
need of the NRPs in Qatar. This is the first high value plan - ‘Prosperity for Life’ was launched. It is one
such arrangement by any insurance of its kind in Pakistan, serving as a single financial tool for
company in Pakistan. savings and protection, which stays with the customer
throughout his life.
>>
October
>>
The market value of our Managed

September Growth Fund exceeded Rs. 5 Billion.
The Annualized growth rate of this
EFU Life’s Network has increased to 79 branches fund had been 19.09% and
throughout the country, making it the largest in the 16.20% over the last 5 and 10 years
private Life Insurance sector. Through these branches respectively. In addition to the size,
we are able to reach a larger segment of the population. the fund has consistently also been
giving good returns to the
policy holders.
>>
November
EFU Life hosted a one day conference

on Bancassurance. The objective of
the conference was to create awareness
about this new distribution channel.
>>
Speakers from Sidat Hyder, the Insurance

December
and Banking sector, SECP and Watson
Wyatt Worldwide were present at this This month marked an achievement for EFU
event. Around 150 delegates participated Group. The gross premium of the Group in
in the conference. 2006 increased to Rs. 12.2 Billion. This is an
increase of 31% over 2005 and reaffirms the
financial strength and stability of the EFU Group.
EFU LIFE ASSURANCE LTD

Annual Report 2006 7
Company Information
Chairman Auditors
Saifuddin N. Zoomkawala KPMG -Taseer Hadi & Co.
Chartered Accountants, Karachi
Managing Director
Gardezi & Co.
& Chief Executive
Chartered Accountants, Karachi
Taher G. Sachak
Rating
Directors
Rating Agency: JCR-VIS
Ashraf W. Tabani Insurer Financial Strength Rating A+
Jahangir Siddiqui Outlook: Stable
Rafique R. Bhimjee
Muneer R. Bhimjee Website:
Hasanali Abdullah www.efulife.com
Corporate Secretary Registered Office
Syed Mehdi Imam Al-Malik Centre
70 W, F-7/G-7 Jinnah Avenue
Appointed Actuary
(Blue Area), Islamabad
Omer Morshed, F.C.A., F.P.S.A., F.I.A.
Main Office
Consulting Actuary & Advisor
37-K, Block 6, P.E.C.H.S., Karachi
Michael J de H. Bell, F.I.A.
Legal Advisor
Mohammad Ali Sayeed, M.A.B.L.

Management
Managing Director & Chief Executive Senior Managers

Taher G. Sachak Evelyn D. Abrogena
Nadym Chandna
National Sales Director
Naseem A. Chaudhari Managers
Arshad Iqbal
Executive Director Asim Maqbool
S. Ali Raza Zaidi Dr. Naila Salman
Fayyaz Mehmood Tahir
Medical Director Mohammad Asim Khan
Dr. Tajuddin A. Manji, F.R.C.P., M.R.C.P. Mohammad Faisal
Mohammad Zubair
General Manager Naveed Shahid
Jamshaid Islam
Advisors
Assistant General Managers Arshad Abdullah
Khurram Amin S. A. Naqvi
Mohammed Ali Ahmed S.M. Baqar Naqvi
S. Shahid Abbas
Zain Ibrahim

Committees
Audit Committee Claim Settlement Committee

Saifuddin N. Zoomkawala Taher G. Sachak
Rafique R. Bhimjee S. M. Baqar Naqvi
Hasanali Abdullah Jamshaid Islam
Zain Ibrahim
Investment Committee Arshad Iqbal
Saifuddin N. Zoomkawala
Taher G. Sachak Reinsurance Committee
Rafique R. Bhimjee Taher G. Sachak
Hasanali Abdullah Omer Morshed
Omer Morshed Jamshaid Islam
Mohammed Ali Ahmed
Underwriting Committee Khurram Amin
Taher G. Sachak
S. M. Baqar Naqvi
Dr. Tajuddin A. Manji
Jamshaid Islam
Zain Ibrahim
Dr. Naila Salman

Notice of Meeting
Notice is hereby given that the 15th Annual General Meeting of the Shareholders of E F U Life Assurance Ltd. will
be held at the Registered Office of the Company at Al-Malik Centre, 70 W, F-7/G-7 Jinnah Avenue (Blue Area),
Islamabad on Saturday April 28, 2007 at 10:30 a.m. to:
A. ORDINARY BUSINESS:
1. confirm the minutes of the 14th Annual General Meeting held on April 28, 2006.
2. receive, consider and approve the Audited Financial Statements for the year ended December 31, 2006 together
with the Directors’ and Auditors’ reports thereon.
3. consider and if thought fit to approve the payment of Dividend at the rate of Rs. 2 per share for the year ended
December 31, 2006 as recommended by the Board of Directors.
4. appoint Auditors for the year 2007 and fix their remuneration.
B. SPECIAL BUSINESS:
5 consider and if thought fit to pass the following Ordinary Resolution with or without modification(s):
RESOLVED that a sum of Rs. 200,000,000 out of the free reserves of the Company be capitalised and applied to
the issue of 20,000,000 Ordinary Shares of Rs. 10/- each and allotted as fully paid up Bonus Shares to the Members,
who are registered in the Books of the Company at the close of business on April 16, 2007 in the proportion of
two new shares for every three existing Ordinary Shares held and that such new shares shall rank pari passu with
the existing Ordinary Shares of the Company.
Further resolved that the members’ fractional entitlement to Bonus Shares may be consolidated and sold in the
stock market and the net sale proceeds of such fractional entitlements when realized be paid to a charitable
institution.
That for the purpose of giving effect to the foregoing, the Managing Director / Chief Executive or the Corporate
Secretary be and are hereby singly authorised to give such directions as may be necessary and settle any questions
or any difficulties that may arise in the distribution of the said new shares or in the payment of the sale proceeds
of the fractions.
6. consider and if thought fit to pass the following Special Resolution with or without modification(s):
RESOLVED that consent of the Company be and is hereby accorded to further Invest maximum of Rs. 300,000,000
(Rupees three hundred million only) in the shares of EFU General Insurance Ltd., an associated public limited
company.
The investment be made from time to time as the Managing Director (Chief Executive) and / or other Attorney(s)
of the Company may deem fit.
FURTHER RESOLVED that Chief Executive or Corporate Secretary be and are hereby individually authorized to fulfill
all legal and corporate formalities for making the above investment.
FURTHER RESOLVED that the Special Resolution be and is hereby passed for the purpose of compliance of Section
208 of the Companies Ordinance, 1984.

7. consider and if thought fit to pass the following Special Resolution with or without modification(s):
RESOLVED that the Authorised Share Capital of the Company be and is hereby increased from Rs. 500,000,000
to Rs. 1,000,000,000 by the creation of 50,000,000 new shares of Rs. 10/- each and the Memorandum and
Articles of Association of the Company be amended as under:
That the words and figures “Rs. 500,000,000 (Rupees five hundred million) divided into 50,000,000 Ordinary
Shares of Rs. 10/- each” appearing in Clause V of Memorandum of Association and Clause 4 of Articles of
Association of the Company be substituted with word and figures “Rs. 1,000,000,000 (Rupees one billion) divided
into 100,000,000 Ordinary Shares of Rs. 10/- each”.
8. transact any other matter with the permission of the Chair.
By Order of the Board
SYED MEHDI IMAM

March 24, 2007 Corporate Secretary
NOTES
1. A member entitled to attend and vote at the General Meeting is entitled to appoint another member as a proxy
to attend and vote in respect of him. Form of proxy must be deposited at the Company’s Registered Office not
later than 48 hours before the time appointed for the meeting.
2. CDC Account holders are advised to follow the following guidelines of the Securities and Exchange Commission
of Pakistan.
A. For attending the meeting:

(i) In case of individuals, the account holder or sub-account holder and / or the person whose securities are in
group account and their registration details are uploaded as per the Regulations, shall authenticate his identity
by showing his original Computerized National Identity Card (CNIC) or original passport at the time of
attending the meeting.
(ii) In case of corporate entity, the Board of Directors’ resolution / power of attorney with specimen signature
of the nominee shall be produced (unless it has been provided earlier) at the time of the meeting.
B. For appointing proxies:
(i) In case of individuals, the account holder or sub-account holder and / or the person whose securities are in
group account and their registration details are uploaded as per the Regulations, shall submit the proxy form
as per the above requirement.
(ii) The proxy form shall be witnessed by two persons whose names, addresses and CNIC numbers shall be
mentioned on the form.
(iii) Attested copies of CNIC or the passport of the beneficial owners and the proxy shall be furnished with the
proxy form.

(iv) The proxy shall produce his original CNIC or original passport at the time of the meeting.
(v) In case of corporate entity, the Board of Directors’ resolution / power of attorney with specimen signature
shall be submitted (unless it has been provided earlier) alongwith proxy form to the Company.
3. The Share Transfer Books of the Company will be closed from April 17, 2007 to April 28, 2007 (both days inclusive).
4. Members are requested to communicate to the Company of any change in their addresses.
5. Statement under section 160 of the Companies Ordinance, 1984 is being sent to all the members.
Statement under section 160 of the Companies Ordinance, 1984 pertaining to the Special business:
1. This statement sets out the material facts pertaining to the Special business to be transacted at the Annual General
Meeting of the Company to be held on April 28, 2007.
2. Item 5 regarding Bonus issue:

Your Directors have recommended the issue of Bonus Shares in the proportion of two new shares for every three
existing Ordinary Shares held at the close of business on April 16, 2007. The Directors are interested in this
business to the extent of their entitlement to Bonus Shares as Members.
3. Item 6 regarding investment in associated company:

EFU General Insurance Ltd. (EFU General) is a leading general insurance company in the country. As on December
31, 2006 it had asset base of Rs. 10.63 billion. Its After tax profit for the year 2004, 2005 & 2006 were Rs. 322
million, Rs. 506 million and Rs. 762 million respectively. EFU General as on December 31, 2006 has Paid-up Capital
of Rs. 500 million, General Reserve of Rs. 500 million and Retained earning of Rs. 778 million.
The information required under SRO No. 865 (1) 2000 is as under:
i) Name of Investee Company:
EFU General Insurance Ltd.
ii) Nature, amount and extent of investment:
Long-term strategic investment up to Rs. 300 million in Ordinary shares of Rs. 10 by way of purchase
from the Stock Exchange at a price ruling on the date of purchase.
iii) Average market price of the shares intended to be purchased during preceding six months:
Rs. 216.08 (September 16, 2006 to March 15, 2007)
iv) Break-up value of shares intended to be purchased on the basis of last published financial
statements:
Rs. 33.51 (September 30, 2006)
v) Price at which shares will be purchased:
Not more than the price quoted on Stock Exchange.
vi) Earning per share of investee company in last three years:
2004 Rs. 15.35
2005 Rs. 16.88
2006 Rs. 15.24

vii) Sources of funds from where shares will be purchased:
Internal generation
viii) Period for which investment will be made:
Long-term
ix) Purpose of investment:
Strategic investment
x) Benefits likely to accrue to the Company and the shareholders from the proposed investment:
Better return and capital appreciation.
xi) Interest of Directors and their relatives in the investee company:
No Director or Chief Executive has any interest in the proposed investment, except in their capacities as
“Directors / Chief Executive” and / or as shareholders of the Company.
xii) Status of approvals for investments in associated Companies:
As required under the SRO No. 865(1)2000 dated December 6, 2000, the position of various investments
in associated and subsidiary companies against approval is as under:
Against the approval accorded by shareholders of the Company at last Annual General Meeting for
investments in associated / subsidiary public limited companies of Rs. 100 million in EFU General Insurance
Ltd., Rs. 120 million in EFU Family Takaful Ltd. and Rs. 20 million in EFU General Takaful Ltd., the Company
has invested Rs. 85.3 million in shares of EFU General Insurance Ltd. No investment has been made in
EFU Family Takaful Ltd. and proposed EFU General Takaful Ltd. as outcome of the proposal of the insurance
industry to the Government of Pakistan for allowing Takaful business also to be carried out as Window
operation similar to the window operations allowed to Banks is awaited.
4. Item 7 regarding increase in Authorised Capital:

The Authorised Share Capital of EFU Life Assurance Limited at present is Rs. 500,000,000. In order to take care
of expansion, it is considered necessary to increase the Authorised Share Capital from Rs. 500,000,000 to
Rs. 1,000,000,000.

Report of the Directors to the Members
EFU Life Assurance Ltd. Board of Directors (Standing Left to Right) Jahangir Siddiqui; Rafique R. Bhimjee; Ashraf W. Tabani;
Saifuddin N. Zoomkawala, Chairman; Taher G. Sachak, Managing Director & Chief Executive; Muneer R. Bhimjee; Hasanali Abdullah
The Directors of your Company are pleased to present Due to steps taken during the year, there was an
to you the Fifteenth Annual Report of the Company increase in the size and productivity of the sales force.
for the year ended 31 December 2006. Eight new branches were opened during 2006
increasing the total number of branches to 80. 130
The year 2006 proved to be another good year for individuals from EFU Life’s sales force qualified for the
EFU Life. Your Company continued to grow in business Million Dollar Round Table (an association based in
as well as profitability. With a focus on exceeding
client expectations and through use of innovative
GROSS PREMIUM
technology, EFU Life continued to stay ahead of its (Group & Individual Life Regular Premium)
competition by providing unmatched products and (Rupees in Million)
3,212
services to its clients. The success of EFU Life is a
tribute to the skills and dedication of its people in
whom we continue to invest by providing better
training and resources. 2,438
One of the key indicators of EFU Life’s success is its 2,285

profitability which continues to grow over the years. 1,762
Your Company made a pre-tax profit of Rs 338 million
1,730
during 2006.
1,317
EFU Life maintained its growth trajectory by showing 1,296

a 34% growth in total premium income in 2006 which 944
933
amounted to Rs 3.34 billion (2005: Rs 2.50 billion). 658 927
635
708
Regular premium individual life insurance which is 443
466
384
your Company’s major line of business increased by 215
309
32% to Rs 2.28 billion (2005: Rs 1.73 billion).
This consisted of Rs 735 million (2005: Rs 565 million) 2001 2002 2003 2004 2005 2006
of new business premium and Rs 1.6 billion
(2005: Rs 1.2 billion) of renewal premium. Group Life Individual Life Regular Premium

USA of top financial advisers from the world over), which is provided to all branches and bancassurance
the highest for any life insurance company in Pakistan. partners. EFU Life also initiated discussions on acquiring
Your Company intends to continue its focus on a client relationship management system for its sales
increasing the size of its sales force and open more force to be provided on their computer laptops.
branches to further increase its market penetration. Improvements were also made in other policy
The strength of its dedicated sales force combined administration processes to reduce turnaround times
with developments made in the bancassurance and provide better service to clients while also achieving
distribution channel will enable EFU Life to garner cost efficiencies.
greater volumes of business during 2007 and beyond.
Focusing on the needs of its clients, EFU Life continued
We strive to deliver better value to customers by to design and launch new products during the year.
designing competitive products, providing our clients One of the major product launches during 2006 was
excellent service, using innovative technology and a flexible unit-linked whole of life product branded
controlling costs. All these measures have borne fruit “Prosperity for Life” which is targeted towards meeting
and this is indicated in the growth of our renewal the evolving financial needs of a family, be it financial
premium and sound business persistency. protection on premature death, children’s education
or marriage, retirement income, or saving for any
For Group Benefits business, EFU Life’s strategy of other future financial objective.
targeting traditional “employer-employee” groups
and diversifying into “bank-customers” groups has Building on our past successes and optimizing our
resulted in a growth of 31% with gross premium internal strengths, we intend to fully exploit the
income of Rs 927 million in 2006 (2005: Rs 708 tremendous opportunities that lie in Pakistan’s life
million). The profitability of this line of business insurance sector. Considering that Pakistan has one
indicates EFU Life’s sound pricing and underwriting of the lowest life insurance penetrations in the world,
methodology in a competitive market. we feel there is a huge market that remains to be
tapped. The growth in Pakistan’s economy and the
The policyholders' fund (statutory funds) of the demographic structure of its population are also fuelling
Company stood at Rs. 6.07 billion at the end of demand for life insurance products. Meeting this
2006 compared to Rs. 4.8 billion (Restated) at the end
of 2005.
GROSS DEATH AND DISABILITY CLAIMS
During the year 2006 the Company incurred death 503
and disability claims of Rs. 503 million with individual (Rupees in Million)
and group life claims amounting to Rs. 113 million 113

and Rs. 390 million, respectively.
357
As mentioned earlier, EFU Life as part of its strategy 335
makes extensive use of technology to gain competitive
53 288 76
advantage and provide better value to all its
stakeholders. In 2006, EFU Life became the first life 52
insurance company in Pakistan to launch a toll-free
188 390
call center. This call center uses state of the art
159 26
technology to provide clients ready access to their
26 282 280
policies’ information and EFU Life’s client servicing 236
staff. A mobile phone application software was
162
developed in-house and launched in 2006 for the 133
sales force which enables them access to vital business
information through their mobile phones by means
of an automated short messaging service and GPRS 2001 2002 2003 2004 2005 2006
facilities. This facility is in addition to the internet-
based connectivity to EFU Life’s policy servicing system Group Life Individual Life

demand is only possible through increasing the size Compliance with Code of Corporate Governance:
and breadth of our distribution. We are focused on
The Company has complied with the requirements of
this and are continuously putting in place measures
the Code of Corporate Governance set out by the
to increase the size and productivity of our direct sales
Karachi Stock Exchange in its Listing Rules. A statement
force and at the same time forging bancassurance
to this effect is annexed with the report.
partnerships.
The Directors of your Company were elected for a
Your Company’s Auditors in their report have period of three years’ term expiring on June 21, 2008.
commented that International Accounting Standards
require valuation of investments in an associated The number of meetings attended by each director is
company using the equity method. These investments given below:
have been accounted for in our financial statements
using market value in case of investment-linked Sr. Number of Meetings
business, and lower of cost or market value in case No. Name of Directors attended
of other businesses. Your company has followed this
practice for the following reasons: for unit-linked 1. Saifuddin N. Zoomkawala 4 out of 4
business these investments have been accounted for 2. Taher G. Sachak 4 out of 4
at market values to bring the basis of valuation for 3. Ashraf W. Tabani 2 out of 4
financial reporting in line with basis of valuation of
4. Jahangir Siddiqui 3 out of 4
units; for other businesses the valuation basis adopted
reflects the specialized nature of taxability of profit of 5. Rafique R. Bhimjee 4 out of 4
insurance companies. 6. Muneer R. Bhimjee 4 out of 4
7. Hasanali Abdullah 4 out of 4
Your Company’s Profit after tax during the year
amounted to Rs. 236 million. Leave of absence was granted to Directors who could
(000) not attend the Board Meetings.
Rupees Rupees
Statement of Ethics and Business Practices:
Profit after tax 235 969 The Board has adopted the statement of Ethics and
Business Practices. All employees are informed of this
statement and are required to observe these rules of
Add: Un-appropiated conduct in relation to business and regulations.
profit brought forward 196 279
432 248 Audit Committee:
The Board’s Audit Committee comprises of the
Less: Dividend paid for
following members:
last year 42 000
Bonus shares issued 1. Saifuddin N. Zoomkawala (Chairman)
for last year 90 000 2. Rafique R. Bhimjee
Transfer to general 3. Hasanali Abdullah
reserves for last year 60 000 192 000
Un-appropriated profit carried forward 240 248
Corporate and Financial Reporting Framework:
a) The financial statements prepared by the
Your Directors have pleasure in recommending dividend management of the company present fairly its
of Rs 2 (20%) per share and issuance of 2 bonus state of affairs, the result of its operations, cash
shares for every 3 shares held by the Shareholders of flow and changes in equity.
the Company whose names appear in the Share
Register of the Company at the close of business on b) Proper books of accounts have been maintained
April 16, 2007. by the Company.

c) Appropriate accounting policies have been The Board of Directors recommends the appointment
consistently applied in preparation of financial of M/s Hyder Bhimji & Co. Chartered Accountants
statements and accounting estimates are based and KPMG Taseer Hadi & Co. Chartered Accountants
on reasonable and prudent judgment. as joint auditors of the Company for the year 2007
as suggested by the Audit Committee in place of
d) The International Accounting Standards, as retiring auditors M/s Gardezi & Co. and M/s KPMG
applicable in Pakistan, have been followed in Taseer Hadi & Co. The Audit Committee’s suggestion
preparation of financial statements and any is based on receipt of a notice from a shareholder.
departure therefrom has been adequately disclosed.
The Company continues to receive valuable guidance
e) System of internal control is sound in design and
from Mr. Michael J de H Bell, an actuary of international
has been effectively implemented and monitored.
fame who acts as an advisor to the Board. We wish
f) There are no significant doubts upon the to record our grateful appreciation for the expert
Company’s ability to continue as a going concern. guidance provided by him to your Company. We
further wish to recognize and place on record our
g) There has been no material departure from the appreciation of the contribution made by our
best practices of Corporate Governance, as detailed Appointed Actuary Mr. Omer Morshed for his
in the listing regulations. invaluable advice on actuarial, administrative and
marketing policies of the Company.
h) The key operating and financial data for the last
six years is annexed. We would also like to record our appreciation and
gratitude to Munchener Ruckversicherungs Gesellschaft
i) The value of investments of provident and pension (Munich Re) of Germany who are your Company's
funds based on their un-audited accounts as on main reinsurers and who continue to provide full
December 31, 2006 were the following: support to your Company.
Provident Fund Rs. 71 Million
Our thanks are also due to E F U General Insurance
Pension Fund Rs. 20 Million Ltd. for their continuous support and guidance, which
has enabled the Company to establish a strong
The value of investments includes accrued interest.
presence in the market.
j) Trading of Shares by Chief Executive, Directors,
Chief Financial Officer, Company Secretary, their The Directors wish to record their appreciation for the
spouses and minor children: tremendous contribution made by the able and eminent
officers, staff and field force of the Company towards
Purchase of Shares No. of Shares its development and growth. Their continuous
commitment to high ethical standards, client service
Mr. Saifuddin N. Zoomkawala 1 900 and hard work has helped your Company emerge and
Chairman maintain its position as a clear market leader amongst
Syed Shahid Abbas 50 private sector life insurers.
CFO
Sale of Shares NIL Finally, we would like to thank our clients for the
confidence expressed in us and also to the Insurance
k) The statement of shareholding in the Company Division of the Securities and Exchange Commission
as at 31 December 2006 is included with the of Pakistan for the co-operation extended to us
Report. throughout the year.
HASANALI ABDULLAH RAFIQUE R. BHIMJEE TAHER G. SACHAK SAIFUDDIN N. ZOOMKAWALA

Director Director Managing Director & Chairman
Chief Executive
Karachi March 24, 2007

Key Financial Data for The Last Six Years
(Rupees ‘000)
2006 2005 2004 2003 2002 2001

(Restated)
Gross premium 3 338 078 2 500 098 1 883 699 1 933 189 1 094 827 693 016
REVENUE ACCOUNT
Premium - net of reinsurance 3 042 316 2 257 827 1 719 822 1 751 061 918 174 570 318
Interest and other income 717 288 469 814 322 895 250 140 156 276 101 230
3 759 604 2 727 641 2 042 717 2 001 201 1 074 450 671 548
Claims less reinsurances 758 980 622 169 503 893 334 044 142 341 113 021
Commission and expenses 1 085 416 803 158 576 579 468 069 356 243 257 372
(Write back) / provision for
depreciation on investments 178 962 ( 418 769 ) ( 4 022 ) ( 173 411 ) ( 13 264 ) 14 654
Change in the statutory fund 1 398 477 1 424 869 751 437 1 254 580 548 760 266 789
Profit before tax 337 769 296 214 214 830 117 919 40 370 19 712
Provision for tax ( 101 800 ) ( 100 347 ) ( 74 000 ) ( 39 500 ) ( 15 600 ) ( 3 111 )
Profit after tax 235 969 195 867 140 830 78 419 24 770 16 601
BALANCE SHEET
Investments 6 573 206 5 156 704 3 689 747 2 693 147 1 314 267 798 862
Reserve for depreciation on investment – – – – ( 12 741 ) ( 26 006 )
Cash & bank balances 683 275 455 453 382 418 317 970 162 413 114 714
Preliminary & other deferred costs – – – – – 35 801
Other assets 204 855 138 289 112 327 348 734 220 311 171 866
Fixed assets 238 892 217 928 74 569 54 715 54 372 50 716
7 700 228 5 968 374 4 259 061 3 414 566 1 738 622 1 145 953
Issued, subscribed and paid-up capital 300 000 210 000 165 000 150 000 150 000 150 000
Accumulated surplus / (loss) 240 248 196 279 150 162 39 332 46 ( 9 724 )
General reserve 190 000 130 000 50 000 50 000 – –
Balance of statutory fund 6 314 689 4 916 212 3 491 343 2 739 906 1 338 801 790 041
Other liabilities 655 291 515 883 402 556 435 328 249 775 215 636
7 700 228 5 968 374 4 259 061 3 414 566 1 738 622 1 145 953

Statement of Compliance with the Code of Corporate Governance
This statement is being presented to comply with the Code of Corporate Governance contained in the listing regulations
of Karachi Stock Exchange for the purpose of establishing a framework of good governance, whereby a listed company
is managed in compliance with the best practices of corporate governance.
The Company has applied the principles contained in the Code in the following manner:
1. The Company encourages representation of non-executive Directors on its Board. At present the Board includes
six independent non-executive Directors, who were elected on 11 June 2005 for the three years’ term effective
22 June 2005.
2. The Directors have confirmed that none of them is serving as a Director in more than ten listed companies.
3. All the resident Directors of the Company are registered as taxpayers and none of them has defaulted in payment
of any loan to a banking company, a DFI or an NBFI or, being a member of a stock exchange, has been declared
as a defaulter by that stock exchange.
4. No casual vacancy occurred in the Board during the year.
5. The Company has prepared a ‘Statement of Ethics and Business Practices’, which has been signed by all the
Directors and employees of the Company.
6. The Board has developed a vision / mission statement, overall corporate strategy and significant policies of the
Company. A complete record of particulars of significant policies along with the dates on which they were
approved or amended has been maintained.
7. All the powers of the Board have been duly exercised and decisions on material transactions have been taken
by the Board including appointment and determination of remuneration and terms and conditions of employment
of CEO have been taken by the Board.
8. The meetings of the Board were presided over by the Chairman and the Board met at least once in every quarter.
Written notices of the Board meetings, along with agenda and working papers, were circulated at least seven
days before the meetings. The minutes of the meetings were appropriately recorded and circulated.
9. The management of the Company has submitted a paper to the Board of Directors on October 28, 2006 to
consider it as an orientation course for its Directors and to apprise them of their duties and responsibilities.
10. During the year there was no new appointment of Internal Auditor, CFO and Company Secretary.
11. The Directors’ report for this year has been prepared in compliance with the requirements of the Code and fully
describes the salient matters required to be disclosed.
12. The financial statements of the Company were duly endorsed by CEO and CFO before approval of the Board.
13. The Directors, CEO and executives do not hold any interest in the shares of the Company other than that disclosed
in the pattern of shareholding.
14. The Company has complied with all the corporate and financial reporting requirements of the Code.
15. The Board has formed an Audit Committee. It comprises of three non-executive Directors including the Chairman
of the Committee.
16. The meetings of the Audit Committee were held at least once every quarter prior to approval of interim and final
results of the Company and as required by the Code. The terms of reference of the committee have been formed
and advised to the committee for compliance.
Annual Report 2006 20 EFU LIFE ASSURANCE LTD

17. The Company has established an internal audit department and taking steps to further strengthening it.
18. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating under the
quality control review programme of the Institute of Chartered Accountants of Pakistan, that they or any of the
partners of the firm, their spouses and minor children do not hold shares of the Company and that the firm and
all its partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics
as adopted by Institute of Chartered Accountants of Pakistan.
19. The statutory auditors or the persons associated with them have not been appointed to provide other services
except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC
guidelines in this regard.
20. We confirm that all other material principles contained in the Code have been complied with.

Chief Executive

Review Report to the Members on Statement of Compliance
with Best Practices of Code of Corporate Governance
We have reviewed the Statement of Compliance with the best practices contained in the Code of Corporate Governance
prepared by the Board of Directors of EFU Life Assurance Limited (“the Company”) to comply with the listing regulation
No. 37 of the Karachi Stock Exchange and Code of Corporate Governance applicable to listed insurance companies,
issued by the Securities and Exchange Commission of Pakistan.
The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors of the
Company. Our responsibility is to review, to the extent where such compliance can be objectively verified, whether the
Statement of Compliance reflects the status of the Company’s compliance with the provisions of the Code of Corporate
Governance and report if it does not. A review is limited primarily to inquiries of the Company’s personnel and review
of various documents prepared by the Company to comply with the Code.
As part of our audit of financial statements we are required to obtain an understanding of the accounting and internal
control systems sufficient to plan the audit and develop an effective audit approach. We have not carried out any special
review of the internal control system to enable us to express an opinion as to whether the Board’s statement on internal
control covers all controls and the effectiveness of such internal controls.
Based on our review nothing has come to our attention, which causes us to believe that the Statement of Compliance
does not appropriately reflect the Company’s compliance, in all material respects, with the best practices contained in
the Code of Corporate Governance.
GARDEZI & CO. KPMG TASEER HADI & CO.

Chartered Accountants Chartered Accountants

Auditors’ Report to the Members
We have audited the annexed financial statements comprising:

(i) balance sheet;
(ii) profit and loss account;
(iii) statement of changes in equity;
(iv) cash flow statement;
(v) revenue account;
(vi) statement of premiums;
(vii) statement of claims;
(viii) statement of expenses; and
(ix) statement of investment income
of EFU Life Assurance Limited (the Company) as at 31 December 2006 together with the notes forming part thereof, for the year then
ended.
It is the responsibility of the Company’s Board of Directors to establish and maintain a system of internal control, and prepare and present
the financial statements in conformity with the Approved Accounting Standards as applicable in Pakistan and the requirements of the
Insurance Ordinance, 2000 (XXXIX of 2000) and the Companies Ordinance, 1984 (XLVII of 1984). Our responsibility is to express an
opinion on these statements based on our audit.
We conducted our audit in accordance with the Auditing Standards as applicable in Pakistan. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting policies used and significant estimates made by management, as well as, evaluating the overall financial statements
presentation. We believe that our audit provides a reasonable basis for our opinion.
As more fully explained in note 4.3 to the financial statements, the Company’s investments in an associated company have been accounted
for using market value in case of unit linked business and lower of cost or market value in case of other businesses. International Accounting
Standards require that such investments be valued using equity method. Had the equity method been used for valuation, the value of
investments and policyholders’ liabilities as at 31 December 2006 would been lower by Rs 16.2 million (2005: higher by Rs 22.9 million)
and Rs 40.4 million (2005: higher by 7.5 million) respectively and profit for the year would have been higher by Rs. 8.688 million.
In our opinion:
a) proper books of account have been kept by the Company as required by the Insurance Ordinance, 2000 and the Companies
Ordinance, 1984;
b) except for the effect of the matter relating to accounting for investment in associates referred to above, the financial statements
together with the notes thereon have been drawn up in conformity with the Insurance Ordinance, 2000 and the Companies
Ordinance, 1984, and accurately reflect the books and records of the Company and are further in accordance with accounting
policies consistently applied except for change specified in note 4.2 to the financial statements with which we concur;
c) except for the effect of the matter relating to accounting for investment in associates referred to above, the financial statements
together with the notes thereon present fairly, in all material respects, the state of the Company’s affairs as at 31 December 2006
and of the profit, its cash flows and changes in equity for the year then ended in accordance with Approved Accounting Standards
as applicable in Pakistan, and give the information required to be disclosed by the Insurance Ordinance, 2000 and the Companies
Ordinance, 1984;
d) the apportionment of assets, liabilities, revenue and expenses between two or more funds has been performed in accordance with
the advice of the appointed actuary; and
e) Zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the Company and deposited
in the Central Zakat Fund established under Section 7 of that Ordinance.
GARDEZI & CO. KPMG TASEER HADI & CO.

Chartered Accountants Chartered Accountants

Balance Sheet As At 31 December 2006
(Rupees ‘000)
Note Shareholders’
Fund Statutory Funds
Investment Pension Accident & Aggregate Aggregate
Linked Conventional Business Health 2006 2005
Business Business (Unit Linked) Business (Restated)
Share capital and reserves

Authorised share capital 500 000 500 000 500 000
Issued, subscribed and paid up
share capital 5 300 000 300 000 210 000
Accumulated surplus 240 248 240 248 196 279

General reserve 190 000 190 000 130 000
Net shareholders' equity 730 248 730 248 536 279
Balance of statutory fund

[including policyholders'
liabilities Rs. 6 080 million
(2005: Rs. 4 804 million
as restated)] 7 – 6 123 733 171 831 13 969 5 156 6 314 689 4 916 212
Deferred taxation 8 2 147 – – – – 2 147 1 347
Creditors and accruals

Outstanding claims – 99 120 145 014 – 3 362 247 496 180 033
Premiums received in advance – 132 592 34 037 560 1 043 168 232 138 490
Amounts due to reinsurers – 404 21 672 306 – 22 382 40 171
Amounts due to agents – 71 379 4 960 58 151 76 548 56 290
Accrued expenses 300 48 212 3 980 10 230 52 732 25 459
Taxation - provision less
payments 5 537 – – – – 5 537 58 831
Unclaimed dividend 392 – – – – 392 256
Other creditors and accruals 29 657 50 087 77 – 4 79 825 15 006
Total liabilities 35 886 401 794 209 740 934 4 790 653 144 514 536
Total equity and liabilities 768 281 6 525 527 381 571 14 903 9 946 7 700 228 5 968 374
Contingencies and commitments 8
The annexed notes 1 to 23 form an integral part of these financial statements.

(Rupees ‘000)
Note Shareholders’
Fund Statutory Funds
Business Business (Unit Linked) Business
Cash and bank deposits

Cash and stamps – 226 – – – 226 632
Current and other accounts 22 046 412 912 65 059 91 2 941 503 049 260 821
Deposits maturing within 12 months – 150 000 30 000 – 180 000 194 000
22 046 563 138 95 059 91 2 941 683 275 455 453
Loans - secured
To employees 15 847 – – – – 15 847 11 775
Investments
Government securities 9 149 981 2 198 754 175 026 3 401 5 007 2 532 169 2 565 817
Other fixed income securities 10 24 995 1 438 830 28 784 5 698 6 037 1 504 344 425 410
Listed equities and mutual funds 11 147 373 2 314 122 65 024 6 373 3 293 2 536 185 2 164 969
Unlisted equities 508 – – – – 508 508
322 857 5 951 706 268 834 15 472 14 337 6 573 206 5 156 704
Current assets - others
Premiums due but unpaid – – 20 912 – – 20 912 23 743
Amounts due from reinsurers – 1 160 11 230 – 519 12 909 2 030
Agent balances – 260 208 1 2 471 596
Investment income due but
outstanding – – – – – – 3 879
Investment income accrued 5 699 82 896 7 049 237 361 96 242 53 572
Advances and deposits 3 648 26 944 2 224 6 129 32 951 17 821
Prepayments – 6 673 551 1 32 7 257 4 911
Inter-fund balances 150 096 ( 115 590 ) ( 25 184 ) ( 907 ) ( 8 415 ) – –
Sundry receivables 9 196 8 340 688 2 40 18 266 19 962
168 639 10 683 17 678 ( 660 ) ( 7 332 ) 189 008 126 514
Fixed assets - tangible
Leased hold land 126 505 – – – – 126 505 126 030
Furniture, fixtures, office
equipment and vehicles 112 387 – – – – 112 387 91 898
12 238 892 – – – – 238 892 217 928
Total assets 768 281 6 525 527 381 571 14 903 9 946 7 700 228 5 968 374

Chief Executive

Profit and Loss Account Financial Year Ended 31 December 2006
(Rupees ‘000)
Note 2006 2005
Investment income not attributable to statutory funds

Return on government securities 13 672 6 930
Return on other fixed income securities and deposits 3 359 1 331
Amortisation of premium relative to par ( 856 ) ( 689 )
Dividend income 19 318 15 611
35 493 23 183
Gain / (Loss) on disposal of investments 32 894 ( 42 )
Net investment income 68 387 23 141
Other revenue
- Gain on disposal of fixed assets 1 580 1 910
- Others 2 794 1 640
4 374 3 550
72 761 26 691
Less: expenses not attributable to statutory funds 2 459 6 768
70 302 19 923
Surplus transferred from statutory funds 7 267 467 276 291
Profit before tax 337 769 296 214
Taxation
- Current ( 101 000 ) ( 100 000 )
- Deferred ( 800 ) ( 347 )
8.3 ( 101 800 ) ( 100 347 )
Profit after tax 235 969 195 867
(Rupees)
Earnings per share - basic and diluted 18 7.87 6.53

Chief Executive

Statement of Changes in Equity Financial Year Ended 31 December 2006
(Rupees ‘000)
Shares General Accumulated

Capital Reserve Surplus Total
Balance as at 1 January 2005 165 000 50 000 150 162 365 162
Dividend for the year 2004 – – ( 24 750 ) ( 24 750 )
Issue of bonus shares 45 000 – ( 45 000 ) –
Transfer to general reserve – 80 000 ( 80 000 ) –
Profit for the year 2005 – – 195 867 195 867
Balance as at 31 December 2005 210 000 130 000 196 279 536 279
Dividend for the year 2005 – – ( 42 000 ) ( 42 000 )
Issue of bonus shares 90 000 – ( 90 000 ) –
Transfer to general reserve – 60 000 ( 60 000 ) –
Profit for the year 2006 – – 235 969 235 969
Balance as at 31 December 2006 300 000 190 000 240 248 730 248

Chief Executive

Statement of Cash Flows Financial Year Ended 31 December 2006
(Rupees ‘000)
Statutory Funds
Shareholders’ Linked Conventional Business Health 2006 2005
Fund Business Business (Unit Linked) Business (Restated)
Operating Cash Flows
a) Underwriting activities
Premiums received 2 411 407 945 507 8 383 5 354 3 370 651 2 538 621
Reinsurance premiums paid ( 46 552 ) ( 74 043 ) 5 1 001 ( 119 589 ) ( 92 499 )
Claims paid ( 59 965 ) ( 438 577 ) – ( 1 301 ) ( 499 843 ) ( 350 437 )
Surrenders paid ( 378 016 ) – ( 6 118 ) – ( 384 134 ) ( 351 573 )
Commissions paid ( 441 545 ) ( 224 927 ) ( 605 ) ( 1 223 ) ( 668 300 ) ( 476 177 )
Net cash flow from underwriting activities 1 485 329 207 960 1 665 3 831 1 698 785 1 267 935
b) Other operating activities

Income tax paid ( 154 294 ) – – – – ( 154 294 ) ( 86 506 )
General management expenses paid ( 4 819 ) ( 298 243 ) ( 59 594 ) ( 1 074 ) ( 502 ) ( 364 232 ) ( 301 740 )
Other operating payments ( 7 113 ) ( 41 415 ) ( 648 ) ( 12 ) ( 49 188 ) ( 60 486 )
Other operating receipts 18 735 90 501 4 771 114 007 45 114
Loans advanced ( 10 725 ) – – – – ( 10 725 ) ( 11 832 )
Loan repayments received 6 653 – – – – 6 653 6 030
Other payments on operating assets ( 7 908 ) ( 7 035 ) ( 914 ) 167 ( 90 ) ( 15 780 ) ( 9 273 )
Net cash flow from other operating activities ( 159 471 ) ( 214 777 ) ( 101 923 ) ( 1 555 ) 4 167 ( 473 559 ) ( 418 693 )
Total cash flow from all operating activities ( 159 471 ) 1 270 552 106 037 110 7 998 1 225 226 849 242
Investment activities
Profit / return received 17 752 329 190 24 970 712 1 134 373 758 288 251
Dividends received 18 661 194 216 2 035 535 – 215 447 130 011
Payments for investments ( 111 830 ) ( 1 529 113 ) ( 100 556 ) ( 2 491 ) ( 4 706 ) ( 1 748 696 ) ( 1 338 420 )
Proceeds from disposal of investments 54 673 150 904 32 760 782 1 825 240 944 326 940
Fixed capital expenditure ( 43 478 ) – – – – ( 43 478 ) ( 163 366 )
Proceeds from disposal of fixed assets 6 485 – – – – 6 485 5 033
Total cash flow from investing activities ( 57 737 ) ( 854 803 ) ( 40 791 ) ( 462 ) ( 1 747 ) ( 955 540 ) ( 751 551 )
Financing activities
Surplus appropriated to shareholders' fund 276 291 ( 150 644 ) ( 119 787 ) ( 1 092 ) ( 4 768 ) – –
Dividends paid ( 41 864 ) – – – – ( 41 864 ) ( 24 656 )
Total cash flow from financing activities 234 427 ( 150 644 ) ( 119 787 ) ( 1 092 ) ( 4 768 ) ( 41 864 ) ( 24 656 )
Net cash inflow/(outflow) from all activities 17 219 265 105 ( 54 541 ) ( 1 444 ) 1 483 227 822 73 035
Cash at beginning of the year 4 827 298 033 149 600 1 535 1 458 455 453 382 418
Cash at end of the year 22 046 563 138 95 059 91 2 941 683 275 455 453
Reconciliation to profit and loss account

Operating cash flows 1 225 226 849 242
Depreciation expense ( 17 609 ) ( 16 884 )
Profit on disposal of fixed assets 1 580 1 910
Other income 2 794 1 640
Investment income 625 202 429 557
(Depreciation) / appreciation in market value of investments ( 206 228 ) 400 019
Profit on sale of investments 114 978 55 457
Increase / (decrease) in assets other than cash 27 775 13 028
(Increase) / decrease in liabilities other than running finance ( 1 537 749 ) ( 1 538 102 )
Profit or loss after taxation 235 969 195 867

Chief Executive

Revenue Account Financial Year Ended 31 December 2006
(Rupees ‘000)
Note Statutory Funds

Income
Premiums less reinsurances 2 277 908 752 345 7 827 4 236 3 042 316 2 257 827
Net investment income 429 760 32 446 571 2 788 465 565 861 892
Total net income 2 707 668 784 791 8 398 7 024 3 507 881 3 119 719
Claims and expenditure
Claims net of reinsurance recoveries 424 431 329 002 5 968 ( 421 ) 758 980 622 169
Management expenses 792 723 287 196 1 417 1 621 1 082 957 796 390
Total claims and expenditure 1 217 154 616 198 7 385 1 200 1 841 937 1 418 559
Excess of income over claims and expenditure 1 490 514 168 593 1 013 5 824 1 665 944 1 701 160
Add :policyholders' liabilities at

beginning of the year-as restated 7 4 639 925 145 454 13 945 5 223 4 804 547 3 452 496
Less : policyholders' liabilities at end
of the year 7 5 892 302 168 241 13 969 5 156 6 079 668 4 804 547
( 1 252 377 ) ( 22 787 ) ( 24 ) 67 ( 1 275 121 ) ( 1 352 051 )
Surplus before tax 238 137 145 806 989 5 891 390 823 349 109
Movement in policyholders' liabilities 1 252 377 22 787 24 ( 67 ) 1 275 121 1 352 051
Transfer of surplus to shareholders' fund ( 109 831 ) ( 150 756 ) ( 989 ) ( 5 891 ) ( 267 467 ) ( 276 291 )
Balance of statutory funds at

beginning of the year 4 743 050 153 994 13 945 5 223 4 916 212 3 491 343
Balance of statutory funds at end of the year 6 123 733 171 831 13 969 5 156 6 314 689 4 916 212
Represented by:
Policyholders' liabilities 6 5 892 302 168 241 13 969 5 156 6 079 668 4 804 547
Retained earnings on other

than participating business 7 231 431 3 590 – – 235 021 111 665
Balance of statutory funds 6 123 733 171 831 13 969 5 156 6 314 689 4 916 212

Chief Executive

Statement of Premiums Financial Year Ended 31 December 2006
(Rupees ‘000)
Statutory Funds
Gross premiums
Regular premium individual policies*
First year 724 473 8 808 42 1 633 734 956 565 309
Second year renewal 453 170 2 489 2 116 118 457 893 366 143
Subsequent year renewal 1 080 651 2 263 5 930 3 525 1 092 369 798 695
Single premium individual policies 126 085 – – – 126 085 61 507

Group policies without cash values – 926 775 – – 926 775 708 444
Total gross premiums 2 384 379 940 335 8 088 5 276 3 338 078 2 500 098
Less: Reinsurance premiums ceded

On individual life first year business 26 955 2 851 – 184 29 990 25 513
On individual life second year business 20 038 1 162 49 30 21 279 11 499
On individual life renewal business 59 478 412 212 826 60 928 47 561
On group policies – 183 565 – – 183 565 157 698
Total reinsurance premium ceded 106 471 187 990 261 1 040 295 762 242 271
Net premiums 2 277 908 752 345 7 827 4 236 3 042 316 2 257 827
* Individual policies are those underwritten on an individual basis, and includes joint life policies underwritten as such.

Chief Executive

Statement of Claims Financial Year Ended 31 December 2006
(Rupees ‘000)
Statutory Funds
Investment Pension Accident &
Linked Conventional Business Health Aggregate Aggregate
Business Business (Unit Linked) Business 2006 2005
Gross claims
Claims under individual policies
by death 89 716 6 485 – 500 96 701 65 591
by insured event other than death 16 121 200 – ( 391 ) 15 930 10 838
by maturity 3 086 – – – 3 086 9 999
by surrender 369 657 – 6 118 – 375 775 348 286
Total gross individual policy claims 478 580 6 685 6 118 109 491 492 434 714
Claims under group policies

by death – 370 395 – – 370 395 261 085
by insured event other than death – 19 832 – – 19 832 19 398
experience refund – 69 721 – – 69 721 33 626
Total gross group claims – 459 948 – – 459 948 314 109
Total gross claims 478 580 466 633 6 118 109 951 440 748 823
Less: Reinsurance recoveries

On individual life first year business 11 890 4 830 – ( 205 ) 16 515 8 629
On individual life second year business 11 102 – – ( 544 ) 10 558 2 683
On individual life subsequent
renewal business 20 865 290 – 350 21 505 18 053
On group claims – 105 530 – – 105 530 72 151
On experience refund of premiums 10 292 26 981 150 929 38 352 25 138
Total reinsurance 54 149 137 631 150 530 192 460 126 654
Net claims 424 431 329 002 5 968 ( 421 ) 758 980 622 169

Chief Executive

Statement of Expenses Financial Year Ended 31 December 2006
(Rupees ‘000)
Note Statutory Funds

Investment Pension Accident & AggregateAggregate
Acquisition costs
Remuneration to insurance
intermediaries on individual policies:
- commission on first year premiums 298 269 2 795 17 700 301 781 230 301
- commission on second year premiums 49 082 259 164 65 49 570 42 384
- commission on subsequent
renewal premiums 30 677 53 116 65 30 911 21 225
- commission on single premiums 2 512 – – – 2 512 1 230
- override commission 82 243 586 122 116 83 067 68 956
- other benefits to insurance
intermediaries 101 697 7 161 461 21 109 340 93 941
564 480 10 854 880 967 577 181 458 037
Remuneration to insurance
intermediaries on group policies:
- commission 220 842 220 842 118 957
- other benefits to insurance
intermediaries 11 464 11 464 10 096
232 306 232 306 129 053
Branch overheads 14 85 112 9 004 394 18 94 528 74 044

Other acquisition costs
-Policy stamps 15 377 1 000 – 7 16 384 12 096
Total acquisition cost 664 969 253 164 1 274 992 920 399 673 230
Administration expenses
Salaries and other benefits 62 266 19 121 13 298 81 698 60 973
Traveling expenses 9 522 1 131 2 46 10 701 7 427
Actuary's fees 1 765 146 1 8 1 920 1 680
Medical fees 8 206 675 114 – 8 995 6 412
Legal and professional fee 1 930 159 1 9 2 099 1 572
Advertisements and publicity 6 439 5 710 1 31 12 181 3 620
Computer expenses 3 564 314 1 17 3 896 3 608
Printing and stationery 5 697 765 1 27 6 490 7 091
Depreciation 5 259 632 1 25 5 917 5 557
Rental 4 362 1 841 1 21 6 225 5 291
Difference in exchange ( 893 ) – – – ( 893 ) ( 135 )
Other management expenses 15 30 627 4 929 7 147 35 710 29 841
Gross management expenses 803 713 288 587 1 417 1 621 1 095 338 806 167
Commission from reinsurers ( 10 990 ) ( 1 391 ) – – ( 12 381 ) ( 9 777 )
Net management expenses 792 723 287 196 1 417 1 621 1 082 957 796 390

Chief Executive

Statement of Investment Income Financial Year Ended 31 December 2006
(Rupees ‘000)
Statutory Funds
Investment income
On government securities 253 449 20 236 402 914 275 001 263 839
On other fixed income securities
and deposits 107 045 5 839 407 438 113 729 31 463
Dividend income 198 567 2 035 542 – 201 144 110 383
Amortisation of premium
relative to par ( 21 264 ) ( 5 006 ) ( 131 ) (9) ( 26 410 ) ( 18 061 )
537 797 23 104 1 220 1 343 563 464 387 624
Gain on sale of investments
Shares and stocks 71 016 9 342 281 1 445 82 084 55 499
(Depreciation) / appreciation
in market value of
Government securities ( 37 619 ) – ( 154 ) – ( 37 773 ) ( 102 360 )
Other fixed income securities ( 12 311 ) – ( 19 ) – ( 12 330 ) ( 9 177 )
Shares and stocks ( 128 102 ) – ( 757 ) – ( 128 859 ) 530 306
( 178 032 ) – ( 930 ) – ( 178 962 ) 418 769
Less: Investment related expense ( 1 021 ) – – – ( 1 021 ) –
Net investment income 429 760 32 446 571 2 788 465 565 861 892

Chief Executive

Notes to the Financial Statements For The Year Ended 31 December 2006
1. Status and nature of business

EFU Life Assurance Limited (the Company) was incorporated in Pakistan on 9 August 1992 as a public limited
company under the Companies Ordinance, 1984 and started its operation from 8 November 1992. The shares
of the Company are quoted on Karachi Stock Exchange. The registered office of the Company is located at
Al-Malik Centre, 70 W, F-7/G-7 Jinnah Avenue, Islamabad while principal place of business is located at 37-K,
Block 6, PECHS, Karachi.
The Company is engaged in life insurance business carrying on ordinary life business, pension fund business
and accident and health business and has established following statutory funds, as required by the Insurance
Ordinance, 2000:
- Investment Linked business (includes individual life business)
- Pension business (Investment linked)
- Conventional business (includes group life and individual life businesses)
- Accident and health business
2. Basis of presentation
2.1 Statement of compliance
These financial statements have been prepared in accordance with the approved accounting standards as applicable
in Pakistan and the requirements of the Companies Ordinance, 1984, the Insurance Ordinance, 2000 and Securities
and Exchange Commission (Insurance) Rules, 2002. Approved accounting standards comprise of such International
Financial Reporting Standards (IFRSs) as notified under the provisions of the Companies Ordinance, 1984. Where
the requirements of the Companies Ordinance, 1984, the Insurance Ordinance, 2000 or directives / rules issued
by the Securities and Exchange Commission of Pakistan (SECP) differ with the requirements of these standards,
the requirements of the Companies Ordinance, 1984, the Insurance Ordinance, 2000 or of the said directives /
rules take precedence.
3. Basis of measurement
These financial statements have been prepared on the basis of the historical cost convention as modified by
revaluation of certain investments (note 4.3) at fair values and valuation of policyholders' liabilities on the basis
of actuarial valuation.
Use of judgments and estimates
The preparation of financial statements in conformity with approved accounting standards requires management
to make judgments, estimates and assumptions that affects the application of policies and reported amount of
assets and liabilities, income and expenses.
Actual results may differ from these estimates. The estimates and underlying assumption are reviewed on an on
going basis. Revisions to accounting estimates are recognized in the period in which the estimates is revised if
the revision effects only that period, or in the period and future periods if the revision effects both current and
future periods.
Judgments made by management in application of approved accounting standards that have significant effect
on the financial statements and estimates with a material adjustment in the next year are:
a) Policyholders’ liabilities (see note 4.2)
Policyholders’ liabilities are calculated by the appointed actuary using appropriate discount rate and mortality
assumptions. Actual investment returns and mortality charge is, by its nature, expected be different from estimates.
b) Claims (see note 4.5)
Calculation for claims incurred but not reported (IBNR) is made on the assumption that the claim lag pattern will
follow the historical trend experience.
c) Taxation (see note 4.8)
Provision for taxation is based on the assumption that tax assessments will be finalized in accordance with the
historical experience of the Company.

d) Held to maturity investments (see note 4.3, 9 and 10)
Investments are classified as held to maturity based on the assumption that the Company will be able to hold
these investments till their maturity.
Functional currency and presentation currency
These financial statements are presented in Pak Rupees which is the Company’s functional currency. All financial
information presented in Pak Rupees has been rounded to the nearest thousand.
4. Summary of significant accounting policies

The significant accounting policies adopted in preparation of these financial statements are set out below. These
policies have been applied consistently to all years presented except for a change in policy relating to policyholders’
liabilities as noted in 4.2 below.
4.1 Statutory funds

The Company maintains statutory funds for all classes of life insurance business. Assets, liabilities, revenues and
expenses are recorded in respective funds, if referable or, on the basis of actuarial advice if not referable. Other
assets, liabilities, revenues and expenses are allocated to shareholders' fund. Policyholders' liabilities have been
included in statutory funds on the basis of the actuarial valuation carried out by the appointed actuary of the
Company on the balance sheet date as required by Section 50 of the Insurance Ordinance, 2000.
4.2 Policyholders’ liabilities

Policyholders’ liabilities are stated at a value determined by the appointed actuary through an actuarial valuation
carried out as at each balance sheet date. In determining the value both acquired policy values (which forms the
bulk of policyholders’ liabilities) as well as estimated values which will be payable against risks which the Company
underwrites. The bases used are applied consistently from year to year except as stated hereunder.
The basic liability consists of the estimated actuarial liability against each contract which is in force. To this are
added:
a) The cash value of policies which have lapsed over the last two years and where the liability would be reinstated
in case of the policy being revived; and
b) A reserve for catastrophic losses in excess of those provided for on a policy by policy basis.
At 31 December 2005 the policyholders’ liabilities included an element of reserve for a potential solvency margin
which has been removed from these financial statements.
The provision for solvency margin had been provided on the understanding that the Securities and Exchange
Commission of Pakistan (SECP) would imminently introduce a solvency margin based on a similar basis as used
in the European Union. The SECP has, however, set up a committee to formulate a suitable basis for provision of
a solvency margin, which indicates that the use of similar basis as used by European Union is not as certain as it
had been in previous years. As a result the appointed actuary no longer considers this provision as necessary. The
effect of this change has been incorporated retrospectively in these financial statements as disclosed in note 7
to the financial statements.
4.3 Investments
Investments which are intended to be held for an undefined period of time but may be sold in response to the
need for liquidity or changes in interest rate are classified as available for sale. Investments acquired principally
for the purpose of generating a profit from short-term fluctuation in price are classified as held for trading.
Investments, with fixed or determinable payments and fixed maturity, where the Company has positive intent and
ability to hold to maturity are classified as held-to-maturity.
All investments are initially recognised at fair value, including the transaction costs except held for trading investments
which are recognised at fair value.
Investments classified as held-to-maturity are subsequently measured at amortised cost, taking into account any
discount or premium on acquisition, using the effective interest rate method. Available for sale investments relating
to the units assigned to policies of investment linked business and pension business and held for trading investments
are subsequently measured at their fair values and the difference taken to respective revenue accounts. Other

available for sale investments are subsequently measured at lower of cost (determined on moving weighted average
basis) or market value on an aggregate portfolio basis.
International Accounting Standard IAS–39 “Financial Instruments – Recognition and Measurement” has been
revised effective from 1 January 2005. In the revised IAS – 39 the option of taking the revaluation gain / loss on
available for sale securities to income / revenue account has been deleted and all such gain / loss is to be taken
to equity. Furthermore, a new category has been added “financial assets at fair value through profit and loss”.
The Company considers that credit / debit to revenue account for unit linked and pension business is required to
reflect policyholders’ liabilities at their fair value.
Available for sale investments include investments in an associated company, EFU General Insurance Limited carried
at Rs.192 million. These are being valued either at lower of cost or market value or fair value (for Unit Linked
Business). International Accounting Standard IAS – 28 (revised) “Investments in Associates” effective for financial
periods beginning on or after 1 January 2005 requires that an investment in associate shall be accounted for using
the equity method. The Company considers that accounting for these investments at a value above cost for business
other than unit linked business would result in complications similar to those related to adoption of International
Accounting Standard IAS – 39 “Financial Instruments – Recognition and Measurement”. Had the equity method
been used for valuation, the value of investments and policy holders’ liabilities as at 31 December 2006
would have been lower by Rs. 16.2 million (2005: higher by Rs. 22.9 million) and Rs. 40.4 million (2005: higher
by Rs. 7.5 million) respectively and profit for the year ended 31 December 2006 would have been higher by
Rs. 8.6 million.
4.4 Revenue recognition

First year individual life premiums are recognized once the related policies have been issued and the premiums
received. Renewal premiums are recognized upon receipt provided the policy is still in force. Single premiums are
recognised once the related policies are issued against the receipts of premium.
Group life premiums are recognized when due. A provision for unearned premiums is included in the policyholders’
liabilities.
Reinsurance expense is recognized as a liability in accordance with the pattern of recognition of related premium.
Interest income on bank deposits and fixed income securities is recorded on a time proportion basis using effective
interest rate method.
Dividend income is recognized when right to receive such dividend is established.
4.5 Claims
A liability for outstanding claims is recognized in respect of all claims incurred up to the balance sheet date. Claims
where intimation of the event giving rise to the claim is received or in respect of investment linked business when
the policy ceases to participate in the earnings of the statutory fund are reported as claims in the revenue account.
The liability for claims incurred but not reported at the year end is determined by the Appointed Actuary and are
included in the policyholders’ liabilities. Experience refund of premium calculated by appointed actuary is included
in outstanding claims. Experience refund of premium receivable from reinsurers is included in the reinsurance
recoveries of claim.
Claim recoveries receivable from the reinsurers are recognized at the same time as the claim which give rise to
the right of recovery and are measured at the amount expected to be recovered.
4.6 Acquisition costs

Directly referable commission and other expenses are recognized as cost when the related policies are issued or
renewed. Branch overheads and other acquisition costs are recognized when these are incurred.
4.7 Employees' retirement benefits

The Company operates two defined contribution retirement benefit plans, i.e. an approved funded provident fund
scheme for all permanent employees and an approved funded pension scheme for eligible officers. Monthly
contributions to these funds are made in accordance with their rules. Contributions made to these funds are
recognized as an expense.

4.8 Taxation
Income tax expense comprises of current and deferred tax. Income tax expense is recognized in the profit and loss account.
Current
Provision for current taxation is based on taxable income determined under the Fourth Schedule to the Income
Tax Ordnance, 2001. The charge is calculated using tax rates enacted or substantively enacted at the balance sheet
date. The charge for current tax also includes adjustments related to prior years, if any.
Deferred
Deferred tax is accounted for using the balance sheet liability method, providing for all temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement
of the carrying amount of assets and liabilities, using the enacted or substantively enacted rates of taxation.
4.9 Dividends to equity holders

Cash dividends to shareholders is recognized as liability in the period in which it is approved. Similarly all other
appropriations other than those required by law including reserve for issue of bonus shares are recognized in the
period in which they are approved.
4.10 Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and impairment, if any. Depreciation is calculated
on the reducing balance method at the following rates:
Office equipment 10%
Furniture and fixture 10%
Vehicle 20%
Computers 30%
Normal repairs and maintenance are charged to income currently. Major renewals and improvements are capitalized
and assets retired, if any, are derecognized.
Gains or losses on disposal of fixed assets are included in the profit and loss account currently.
Depreciation rates and method are reviewed at each balance sheet date and adjusted, if required.
4.11 Foreign currencies

Transactions in foreign currencies are translated into Pak Rupees at the rates prevailing on the date of transaction.
Monetary assets and liabilities in foreign currencies are translated into Rupee at the rate of exchange prevailing
on the balance sheet date. All exchange differences are taken to revenue / profit and loss account.
4.12 Cash and cash equivalents

For the purpose of cash flow statement, cash and cash equivalents include the following:
– Cash at bank in current and saving accounts
– Cash and stamps in hand
– Term deposits with original maturity within three months
4.13 Impairment
The carrying amount of the Company’s assets is reviewed on an ongoing basis to determine whether there is any
indication of impairment. If such an indication exists, the recoverable amount of the assets is determined and
impairment losses, if any, are recognised in the revenue / profit and loss accounts.
4.14 Provisions
Provisions are recognised when the Company has a legal or constructive obligation as a result of a past event,
and it is probable that outflow of resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of obligation.

4.15 Off-setting
Assets and liabilities are offset and the net amount is reported in the financial statements only when there is legally
enforceable right to set-off the recognised amount and the Company intends either to settle on a net basis or realise
the assets and settle the liabilities simultaneously.
4.16 Financial assets and liabilities

All financial assets and liabilities are initially measured at fair value plus directly attributable costs. These financial
assets and liabilities are subsequently measured at fair value or amortised cost as the case may be.
(Rupees ‘000)
5. Share Capital
2006 2005 2006 2005

(Number of Shares)
Issued, subscribed and paid up
15 000 000 15 000 000 Ordinary shares of Rs. 10 each issued for cash 150 000 150 000
Ordinary shares of Rs. 10 each issued as

15 000 000 6 000 000 fully paid bonus share 150 000 60 000
30 000 000 21 000 000 300 000 210 000
5.1 Dividend and bonus shares

Subsequent to the year end the Board of Directors have proposed the following dividends;
Cash dividend @ Rs. 2 per share amounting to Rs. 60 million
Issue of 2 bonus shares for every 3 shares held amounting to Rs. 200 million
These financial statements do not reflect the above appropriation which will be accounted for in the year of declaration.
6. Policyholders’ liabilities
(Rupees ‘000)
Statutory Funds
6.1 Gross of reinsurance
Actuarial liability relating to
future events 5 954 121 172 907 14 086 6 037 6 147 151 4 849 671
Provision for outstanding
reported claims payable
over a period exceeding
twelve months 22 855 – – 90 22 945 14 980
Provision for incurred but not
reported claims 4 482 55 072 – – 59 554 39 907
5 981 458 227 979 14 086 6 127 6 229 650 4 904 558
6.2 Net of reinsurance

Actuarial liability relating to
future events 5 880 753 127 795 13 969 5 084 6 027 601 4 765 092
Provision for outstanding
reported claims payable
over a period exceeding
twelve months 7 923 – – 72 7 995 6 713
Provision for incurred but not
reported claims 3 626 40 446 – – 44 072 32 742
5 892 302 168 241 13 969 5 156 6 079 668 4 804 547

7. Movements of statutory funds
(Rupees ‘000)
Statutory Funds
Policyholders’ liabilities
Balance at beginning of the year –
as previously reported 4 743 050 145 454 13 945 5 223 4 907 672 3 482 143
Effect of change in accounting
policy (refer note no.4.2) ( 103 125 ) ( 103 125 ) ( 29 647 )
as restated 4 639 925 145 454 13 945 5 223 4 804 547 3 452 496
Increase during the year 1 252 377 22 787 24 ( 67 ) 1 275 121 1 352 051
Balance at end of the year 5 892 302 168 241 13 969 5 156 6 079 668 4 804 547
Retained earnings on other than
participating business
as previously reported – 8 540 – – 8 540 9 200
Effect of change in accounting
policy (ref. note no.4.2) 103 125 – – – 103 125 29 647
as restated 103 125 8 540 – – 111 665 38 847
Surplus for the year 238 137 145 806 989 5 891 390 823 349 109
Surplus appropriated to
shareholders’ fund ( 109 831 ) ( 150 756 ) ( 989 ) ( 5 891 ) ( 267 467 ) ( 276 291 )
Balance at end of the year 231 431 3 590 – – 235 021 111 665
Balance of Statutory Funds 6 123 733 171 831 13 969 5 156 6 314 689 4 916 212
7.1 The SECP issued a circular during the year which clarified the interpretation of section 32(2)(g) of the Insurance Ordinance 2000, as a result
of which certain related party investments held in the Investment Linked Statutory Fund of the Company may be treated as inadmissible.
Although the applicability of this for unit linked policies is not yet clear, in accordance with the advice of its appointed actuary, the Company
has retained an amount of Rs. 231.431 million within the Investment Linked Statutory Fund in order to be prudent.
No deferred tax liability has been recognised on the undistributed surplus in view of the fact that surplus has been retained to meet solvency
requirement and is not expected to be available for distribution to shareholders in the foreseeable future.
8. Taxation
8.1 The income tax returns for the Tax year 2004, 2005 and 2006 have been filed on self assessment basis. Appeals relating to the assessment
years 1994-1995 to 1998-1999 are pending before the High Court of Sindh regarding levy of Turnover Tax. Appeals in respect of assessment
years 1999-2000 and 2000-2001 are pending with the Commissioner of Income Tax (Appeals) and there could arise a potential tax liability
of Rs.1.3 million if the matter is decided against the Company. No provision has been made for the liability as the Company is confident
of a favorable outcome in appeal.
8.2 Deferred taxation (Rupees ‘000)

2006 2005
Deferred tax liability arising on taxable temporary difference:
On accelerated tax depreciation 2 147 1 347
8.3 Reconciliation of tax rate 2006 2005

% %
Applicable Tax Rate 35.00 35.000
Tax effect of amount that are not deductible for tax purposes – 0.46
Tax effect of amount taxed at reduced rates ( 1.72 ) ( 1.58 )
Effect of income exempt from tax ( 3.52 ) –
Average effective tax rate charged on income 29.76 33.88

9. Investment in government securities
(Rupees ‘000)
Statutory Funds
Maturity Effective Shareholders’ Linked Conventional Business Health 2006 2005
Year Yield % Fund Business Business (Unit Linked) Business (Restated)
Held to maturity
at amortised cost
Treasury Bills 2006 – – – – – – – 20 574
5 Years Pakistan
Investment Bonds 2007-08 5.61-8.97 3 575 25 069 44 875 – – 73 519 74 790
10 Years Defence
Savings Certificates 2007-09 18.03 – 602 851 – – – 602 851 527 993
10 Years Pakistan
Investment Bonds 2011-14 5.79-13.54 55 106 22 956 130 151 – 5 007 213 220 215 433
8 Years WAPDA
Sukuk Certificates 2012 9.89 80 000 – – – – 80 000 –
15 Years Pakistan
Investment Bonds 2019 7.35 11 300 – – – – 11 300 11 365
20 Years Pakistan
Investment Bonds 2024 9.79-9.80 – 54 818 – – – 54 818 54 843
149 981 705 694 175 026 – 5 007 1 035 708 904 998
Available for sale

at market value
Treasury Bills 2006 – – – – – – – 167 237
5 Years WAPDA
Bonds 2008 7.07-9.84 – 49 920 – – – 49 920 51 480
5 Years Pakistan
Investment Bonds 2006-09 6.1-7.5 – 105 437 – 587 – 106 024 106 350
10 Years Pakistan
Investment Bonds 2011-14 5.16-14 – 909 977 – 1 039 – 911 016 889 153
15 Years Pakistan
Investment Bonds 2019 7.1-9.25 – 125 776 – – – 125 776 131 392
20 Years Pakistan
Investment Bonds 2024 7.95-10.25 – 301 950 – 1 775 – 303 725 315 207
– 1 493 060 – 3 401 – 1 496 461 1 660 819
149 981 2 198 754 175 026 3 401 5 007 2 532 169 2 565 817
9.1 Market value of the government securities carried at amortised cost amounted to Rs.1,023.717 million (2005: Rs.899.345
million).
10. Other fixed income securities (Rupees ‘000)
Statutory Funds
Held to maturity
at amortised cost
Term Finance Certificates
Bank Alfalah Ltd. 2008 11.38 – – – – 1 515 1 515 –
Standard Chartered
Bank Pakistan
Limited 3rd issue 2013 12.06 24 995 – – – – 24 995 25 000
United Bank
Limited 2nd issue 2013 10.23 – 33 007 4 784 – – 37 791 38 680
Dominion Fertilizers 2013 12.75 – – 14 000 – 2 000 16 000 –
Prime Commercial Bank 2013 12.07 – 10 080 – – 504 10 584 –
Soneri Bank Ltd. 2013 12.00 – – – – 2 018 2 018 –
Allied Bank Ltd. 2014 12.45 – – 10 000 – – 10 000 –
24 995 43 087 28 784 – 6 037 102 903 63 680

(Rupees ‘000)
Statutory Funds
Available for sale
at market value
Term Finance Certificates
First Oil & Gas Securitization
Co. Limited 2006 – – – – – – – 947
Orix Leasing Pakistan
Limited – 2nd issue 2006 – – – – – – – 7 437
Gulistan Textile Limited 2006 – – – – – – – 9 180
Reliance Weaving
Mills Limited 2006 – – – – – – – 569
First Dawood Investment
Bank Ltd. 2007 13.50 – 5 050 – – – 5 050 15 325
Standard Chartered Bank
Pakistan Limited. 2007 7.84 – 41 992 – – – 41 992 31 620
Worldcall Communications
Limited 2007 12.25 – 304 – – – 304 612
Hertz Optimus Limited 2007 14.00 – 20 000 – – – 20 000 –
Bank Alfalah Limited
1st issue 2008 9.96 – 20 098 – 3 381 – 23 479 5 993
MCB Bank Limited 2008 10.58 – 29 894 – 811 – 30 705 30 869
Pakistan Mobile
Communications
(Private) Limited 2008 12.88 – 13 200 – – – 13 200 16 500
Trust Leasing
Corporation Limited 2008 11.00 – 13 436 – – – 13 436 6 227
Jahangir Siddiqui &
Co. Limited 1st issue 2008 7.50 – 9 582 – – – 9 582 11 821
Pakistan Services Ltd. 2008 10.87 – 7 424 – – – 7 424 –
Trust Leasing
Corporation Limited 2009 10.00 – 11 794 – – – 11 794 –
Jahangir Siddiqui &
Co. Limited 2nd issue 2010 10.66 – 10 096 – – – 10 096 10 200
Niamat Basal oil and
gas securities
Co. Ltd. 2010 13.05 – 13 777 – – – 13 777 –
Pakistan Ltd. – 2nd Issue 2011 10.40 – 22 340 – 188 – 22 528 –
Jahangir Siddiqui &
Co. Limited 4th Issue 2012 13.06 – 38 880 – – – 38 880 –
Chanda Oil & Gas Sec.
Co. Ltd. 2012 9.40 – 8 165 – – – 8 165 –
2nd issue 2012 11.91 – 34 273 – – – 34 273 15 069
Azgard Nine Limited 2012 12.31 – 49 225 – – – 49 225 35 175
3rd issue 2013 11.89 – 65 635 – – – 65 635 18 045
United Bank Limited
2nd issue 2013 10.23 – 100 734 – – – 100 734 104 019
Askari Commercial Bank
Limited 1st issue 2013 11.75 – 33 790 – 490 – 34 280 25 120
Askari Commercial Bank
Limited 2nd issue 2013 11.98 – 50 900 – – – 50 900 10 000
Prime Commercial Bank
Limited 2013 12.07 – 60 552 – 247 – 60 799 7 002
Pakistan Mobile
Communications (Pvt.) Ltd. 2013 12.75 – 111 628 – – – 111 628 –
Soneri Bank Ltd. 2013 12.00 – 100 767 – – – 100 767 –
Pakistan Limited.- 3rd Issue 2013 12.06 – 36 277 – 581 – 36 858 –
Dominion Fertilizers 2013 12.75 – 159 000 – – – 159 000 –
United Bank Limited.
– 3rd Issue 2014 12.41 – 103 430 – – – 103 430 –
Allied Bank Ltd. 2014 12.45 – 148 500 – – – 148 500 –
Faysal Bank Ltd. (Pre IPO) 2014 10.59 – 25 000 – – – 25 000 –
Bank AL Habib Ltd. (Pre IPO) 2015 12.61 – 50 000 – – – 50 000 –
– 1 395 743 – 5 698 – 1 401 441 361 730
24 995 1 438 830 28 784 5 698 6 037 1 504 344 425 410
10.1 Market Value of other fixed income securities carried at amortised cost amounted to Rs. 101.335 million (2005: Rs. 62.524 million).

11. Listed equities and mutual funds (Rupees ‘000)
Statutory Funds
Investment Accident &
Shareholders’ Linked Conventional Pension Health Aggregate Aggregate
Fund Business Business Business Business 2006 2005
Available for sale -at

market value
Listed equities – 1 777 510 – 6 373 – 1 783 883 1 522 495
Open end mutual funds – 124 877 – – – 124 877 130 899
Held for trading -at
market value
Listed equities – 319 230 – – – 319 230 274 409
Available for sale -at
lower of cost or
market value
Listed equities 135 925 49 131 35 024 – 1 009 221 089 190 534
Open end mutual fund 11 448 43 374 30 000 – 2 284 87 106 46 632
147 373 2 314 122 65 024 6 373 3 293 2 536 185 2 164 969
11.1 Market Value of listed equities and mutual funds carried at lower of cost or market value amounted to Rs. 731.907
million (2005: Rs.521.047 million).
11.2 Listed equities include investment in EFU General Insurance Limited and JS Bank Limited at carrying value of Rs. 192.358
million (2005: Rs. 41.930 million) and Rs. 48.506 million (2005: Nil) representing 4.77% (2005: 3.66 %) and 0.98%
(2005: Nil) respectively of the issued capital of these companies.
12. Fixed assets (Rupees ‘000)
Cost Accumulated Depreciation

As at 01 As at 31 As at 01 Charge On As at 31 Written
January December January for the Disposal December Down
2006 Addition Disposal 2006 2006 year 2006 Value
Lease hold land 126 030 475 – 126 505 – – – – 126 505
Office equipment 14 910 4 068 488 18 490 5 953 1 132 231 6 854 11 636
Computers 14 556 2 520 177 16 899 9 927 1 882 146 11 663 5 236
Furniture & fixture 72 195 13 151 257 85 089 31 347 4 890 130 36 107 48 982
Vehicles 57 073 23 264 8 658 71 679 19 609 9 705 4 168 25 146 46 533
2006 284 764 43 478 9 580 318 662 66 836 17 609 4 675 79 770 238 892

(Rupees ‘000)
Cost Depreciation
As at 01 As at 31 As at 01 Charge On As at 31 Written
January December January for the Disposal December Down
2005 Addition Disposal 2005 2005 year 2005 Value
Lease hold land – 126 030 – 126 030 – – – – 126 030
Office equipment 12 419 2 859 368 14 910 5 114 995 156 5 953 8 957
Computers 12 346 2 520 310 14 556 8 195 1 984 252 9 927 4 629
Furniture & fixture 62 888 10 237 930 72 195 27 180 4 539 372 31 347 40 848
Vehicles 40 975 21 720 5 622 57 073 13 570 9 366 3 327 19 609 37 464
2005 128 628 163 366 7 230 284 764 54 059 16 884 4 107 66 836 217 928
13. Sale of fixed assets (Rupees ‘000)
Original Accumulated Book Sale Mode of

Cost Depreciation Value Proceeds Disposal Sold to
Vehicle 78 28 50 410 Negotiation M. Uzair, Karachi

Vehicle 76 27 49 400 Negotiation Imran, Karachi
Vehicle 76 28 48 350 Negotiation M. Uzair, Karachi
Vehicle 20 10 10 220 Negotiation Masood Sheeraz, Employee
Vehicle 40 14 26 200 Negotiation Mohd. Aqeel Sanji, Karachi
Vehicle 419 331 88 225 Negotiation Taskeen Raza Khan, Employee
Vehicle 378 315 63 200 Negotiation Rizwan Ali, Karachi
Vehicle 34 12 22 150 Negotiation S. Mohd Athar, Employee
Vehicle 432 341 91 200 Negotiation Hassan Ali, Employee
Vehicle 337 301 36 140 Negotiation M. Faisal, Employee
Vehicle 609 360 249 325 Negotiation S. Ali Raza Zaidi, Employee
Vehicle 464 274 190 250 Negotiation Shoukat Ali, Employee
Vehicle 609 297 312 325 Negotiation Muhd. Ihsan Haq, Employee
Vehicle 464 167 297 300 Negotiation Imran Khan, Karachi
Vehicle 50 39 11 9 Negotiation Shakeel Ahmed, Employee
Vehicle 647 316 331 300 Negotiation Mazhar Hussain, Karachi
Vehicle 636 229 407 300 Negotiation Sardar Zakaullah, Employee
Vehicle 2 286 823 1 463 810 Negotiation Sibtain Ali Bhai, Karachi
Vehicle 40 14 26 300 Insurance Claim EFU Gen. Ins. Ltd.
Assets having
WDV less
than Rs 50,000
Computers 177 146 31 22 Various
Furniture & fixture 257 130 127 15 Various
Office equipment 488 231 257 51 Various
2006 9 580 4 675 4 905 6 485
2005 7 230 4 107 3 123 5 033

14. Branch overheads (Rupees ‘000)
Statutory Funds
Insurance premium 1 416 394 7 – 1 817 1 641

Printing and stationery 2 802 250 14 1 3 067 2 260
Advertisement and publicity 2 073 608 10 – 2 691 152
Postage 1 900 187 9 – 2 096 1 621
Travelling costs 28 954 1 516 125 6 30 601 21 447
Telephone and electricity 14 775 2 157 70 3 17 005 15 929
Rent, Rates and taxes 11 710 967 56 2 12 735 9 968
Conveyance 2 113 227 10 1 2 351 1 753
Repair and maintenance 2 174 187 11 1 2 373 1 547
Entertainment 6 514 639 31 2 7 186 5 686
Other expenses 824 86 4 – 914 713
Depreciation 9 857 1 786 47 2 11 692 11 327
85 112 9 004 394 18 94 528 74 044
15. Other management expenses (Rupees ‘000)

Statutory Funds
Insurance premium 1 719 234 1 8 1 962 1 673

Postage 5 684 922 1 27 6 634 4 838
Telephone and electricity 4 143 1 049 1 20 5 213 5 069
Repair and maintenance 1 584 381 – 8 1 973 2 603
Entertainment 3 090 542 1 15 3 648 3 645
Fees and subscription 3 846 829 1 18 4 694 3 470
Bank charges 2 279 188 1 11 2 479 2 397
Other expenses 7 087 686 1 34 7 808 5 347
Claim investigation fees 1 195 98 – 6 1 299 799
30 627 4 929 7 147 35 710 29 841

16. Remuneration of Chief Executive and Executives
The aggregate amount charged in the financial statements for remuneration, including all benefits, to the Chief Executive
and Executives of the Company are as follows:
(Rupees '000)
2006 2005
Chief Chief
Executive Executives Executive Executives
Managerial remuneration (including bonus) 7 654 17 952 6 339 9 152

Utilities 155 89 172 25
Medical expenses 211 288 102 142
Leave passage – – 331 19
8 020 18 329 6 944 9 338
Number of persons 1 9 1 5
In addition, the Chief Executive and executives are provided with free use of Company cars and certain items of household
furniture in accordance with their entitlement. The Chief Executive is provided with maintained and furnished
accommodation.
17. Auditors' remuneration (Rupees ‘000)

2006 2005
Audit fee – annual (KPMG Taseer Hadi & Co.) 150 150
Audit fee – annual (Gardezi & Co.) 150 150
Limited scope review (KPMG Taseer Hadi & Co.) 85 75
Limited scope review (Gardezi & Co.) 85 75
Out of pocket expenses (KPMG Taseer Hadi & Co.) 93 47
Tax advisory services & other certifications (KPMG Taseer Hadi & Co.) 257 275
820 772
18. Basic and diluted earnings per share

(Rupees ‘000)
Profit for the year 235 969 195 867

(Numbers in ‘000)
Weighted average number of ordinary shares 30 000 30 000
(Rupees)
Earning per share - basic & diluted 7.87 6.53
19. Number of employees

Number of employees as at 31 December 2006 are 478 (2005:459)

20. Financial instruments and related disclosures
20.1 Liquidity risk

Liquidity risk is the risk that the Company will be unable to meet its funding requirements. To guard against this risk,
assets are managed with liquidity in mind maintaining a healthy balance of cash and cash equivalents and readily
marketable securities. The maturity profile is monitored to ensure adequate liquidity is maintained.
20.2 Mark-up rate risk exposure

The Company's exposure to the mark-up rate risk, based on the earlier of contractual repricing or maturity date as at
31 December 2006 is as follows:
2006 (Rupees '000)
Exposed to yield / interest rate risk
Total Upto 1 Over 1 to 3 Over 3 to 6 Over 6 Over 1 Over 2 Over 3 Over 5 Above Non-interest
month months months month to 2 to 3 to 5 to 10 10 years bearing
to 1 years years years years financial
year instruments
On balance sheet financial instruments

Assets
Cash and stamps 226 – – – – – – – – – 226
Current and other accounts 503 049 382 983 – – – – – – – – 120 066
Deposits 180 000 70 000 110 000 – – – – – – – –
Loans 15 847 465 854 1 145 1 754 2 977 2 543 1 465 1 963 2 681 –
Investments 6 573 206 48 253 54 705 67 114 164 434 429 804 354 918 1 371 358 1 050 314 495 613 2 536 693
Premium due but unpaid 20 912 – – – – – – – – – 20 912
Amount due from reinsurer 12 909 – – – – – – – – – 12 909
Agent balances 471 – – – – – – – – – 471
Investment income accrued 96 242 – – – – – – – – – 96 242
Other receivable 51 217 2 087 1 781 2 386 2 784 2 880 166 – – – 39 133
7 454 079 503 788 167 340 70 645 168 972 435 661 357 627 1 372 823 1 052 277 498 294 2 826 652
Liability
Outstanding claims 247 496 – – – – – – – – – 247 496
Premium received in advance 168 232 – – – – – – – – – 168 232
Amount due to reinsurer 22 382 – – – – – – – – – 22 382
Amount due to agent 76 548 – – – – – – – – – 76 548
other creditors 132 949 – – – – – – – – – 132 949
647 607 – – – – – – – – – 647 607
On Balance sheet gap 6 806 472 503 788 167 340 70 645 168 972 435 661 357 627 1 372 823 1 052 277 498 294 2 179 045
20.3 The effective interest rates range for the financial assets is as follows:
2006 2005
Current and Other Accounts 4% to 9% 2% to 4.5%

Deposit 10% to 11.5% 7% to 9%
Loans 9% to 11% 5% to 10%
Investments 5.2% to 18% 5% to 18%
Advances and other receivables 6% to 11% 5% to 7%

20.4 Market risk
Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices,
whether those changes are caused by factors specific to the individual security, or its issuer, or factors affecting all
securities traded in the market.
The Company is exposed to market risk with respect to its investments.
The Company limits market risk by maintaining a diversified portfolio and by continuously monitoring developments
in government securities, equity and term finance certificates (TFCs) markets. In addition, the Company actively monitors
the key factors that affect the value of these securities.
20.5 Credit Risk and Concentration of Credit Risk

Credit risk is the risk, which arises with the possibility that one party to a financial instrument will fail to discharge its
obligation and cause the other party to incur a financial loss.
Concentration of credit risk arises when a number of counterparties have a similar type of business activities. As a
result, any change in economic, political or other conditions would effect their ability to meet contractual obligations.
The Company is exposed to credit risk on premiums receivable from group clients, commission and claims recoverable
from insurers and investment in term finance certificates. The management monitors exposure to credit risk through
regular review of credit exposure, assessing credit worthiness of counter parties and prudent estimates of provision
for doubtful debts.
Due to the nature of financial assets, the Company believes it is not exposed to any major concentration of credit risk.
20.6 Reinsurance Risk

Reinsurance ceded do not relieve the Company from its obligations to policyholders and as a result the company
remains liable for the portion of outstanding claims reinsured to the extent that reinsurer fails to meet the obligations
under the reinsurance agreements.
In order to minimize the financial exposure arising from large claims the Company obtains reinsurance cover only from
companies with sound financial health.
20.7 Fair value

The fair values of all major financial assets are estimated to be not significantly different from their carrying values
except for the following:
(Rupees '000)
Carrying Fair
Value Value
Government securities 432 860 420 865
Other fixed income securities 102 903 101 335
Listed equities and mutual funds 308 189 731 907
Unlisted securities 508 2 608
21. Related party transactions

The related parties comprise of directors, key management personnel, associated understandings, entities with common
directors and employees’ funds.
(Rupees '000)
2006 2005
Associated companies
Transactions
Premium written 6 365 9 779
Premium paid 6 207 4 391
Claims paid 2 904 1 830
Claims received 1 495 716
Traveling expenses 190 366
Commission paid 3 21

(Rupees '000)
2006 2005
Dividend paid 16 387 9 657
Dividend received 3 293 2 305
Balances
Balance payable 23 1 220
Balance receivable 17 19
Employees’ funds
Transactions
Contribution to provident fund 4 586 3 795
Contribution to pension fund 3 188 2 591
Balances
Contribution to provident fund – –
Contribution to pension fund – –
Key Management Personnel
Transactions
Loan to employees 1 392 –
Loan recovered 699 36
Compensation 26 348 23 800
Balances
Loan receivable 1 583 890
22. Standards, interpretations and amendments to published approved accounting standards that are not yet effective
The following standards, amendments and interpretations of approved accounting standards, with effective
dates mentioned against each, are either not relevant to the Company's operations or are not expected to have significant
effect on the Company's financial statements other than increased disclosures in certain cases:
IAS- 1 Presentation of Financial Statements - effective from accounting period beginning on
amendments relating to capital disclosures or after 1 January 2007
IFRS- 2 Share Based Payments effective from accounting period beginning on
or after 1 January 2007
IFRS- 3 Business Combinations effective from accounting period beginning on
IFRS- 5 Non-current Assets Held for Sale effective from accounting period beginning on
and Discontinued Operations or after 1 January 2007
IFRS- 6 Exploration for and Evaluation of effective from accounting period beginning on
Mineral Resources or after 1 January 2007
IFRIC- 8 Scope of IFRS 2 Share Based Payments effective for accounting period beginning on
or after 1 May 2006
IFRIC 9 - Reassessment of embedded Derivatives effective for accounting period beginning on
or after 1 June 2006
IFRIC- 10 Interim Financial Reporting and Impairment effective for accounting period beginning on
or after 1 November 2006
IFRIC- 11 Group and Treasury Share Transactions effective for accounting period beginning on
or after 1 March 2007
IFRIC- 12 Services Concession Arrangements effective for accounting period beginning on
23. DATE OF AUTHORISATION FOR ISSUE
These financial statements were authorized for issue by the Board of Directors in their meeting held on 24 March 2007.

Chief Executive

Statements under Section 52(2) of Insurance Ordinance 2000
Statement by Appointed Actuary

I have reviewed the Balance Sheet and Revenue Account and related notes prepared by the Company for the year ending
31 December 2006. In my opinion:
(a) the policyholder liability included in the balance sheet has been determined in accordance with the provisions
of the Insurance Ordinance, 2000 (“the Ordinance”); and
(b) each statutory fund set up by the Company complies with the solvency requirements of the Ordinance.
OMER MORSHED, FCA, FPSA, FIA

Appointed Actuary
Karachi 24 March 2007
Statement by Directors
We refer to the attached published Financial Statements of the Company, and in particular published Balance Sheet and
Revenue Account and confirm that, in our opinion, each statutory fund set up by the Company complies with the solvency
requirements of the Insurance Ordinance, 2000.

Chief Executive

Pattern of Shareholding as at 31 December 2006
Number of Shareholdings
Shareholders From To Shares Held
128 1 100 7 438
151 101 500 47 160
204 501 1 000 192 920
105 1 001 5 000 213 756
14 5 001 10 000 103 643
12 10 001 15 000 147 861
7 15 001 20 000 125 456
5 20 001 25 000 118 215
2 25 001 30 000 55 885
2 30 001 35 000 66 298
1 35 001 40 000 37 500
1 40 001 45 000 40 200
1 45 001 50 000 47 428
1 50 001 55 000 50 100
3 70 001 75 000 215 910
1 90 001 95 000 95 000
1 175 001 180 000 178 027
2 185 001 190 000 371 162
1 215 001 220 000 219 420
1 250 001 255 000 250 200
1 260 001 265 000 262 115
1 275 001 280 000 279 787
1 350 001 355 000 350 100
1 355 001 360 000 355 090
1 365 001 370 000 370 000
1 370 001 375 000 375 000
1 385 001 390 000 386 571
1 410 001 415 000 410 500
1 440 001 445 000 444 780
1 455 001 460 000 457 871
1 460 001 465 000 464 142
1 560 001 565 000 564 000
1 595 001 600 000 600 000
1 1 250 001 1 255 000 1 253 254
1 1 345 001 1 350 000 1 347 500
1 1 645 001 1 650 000 1 649 995
1 5 990 001 5 995 000 5 994 498
1 11 850 001 11 855 000 11 851 218
661 30 000 000
Categories of Shareholders Number Shares Held Percentage

Associated companies, undertakings and Related Parties 1 11 851 218 39.50
NIT & ICP 3 997 0.00
CEO, Directors, their spouses and minor children 8 3 314 630 11.05
Executives 3 40 307 0.13
Public sector companies & corporations – – –
Joint Stock companies 17 6 015 306 20.05
Banks, Development Finance Institutions, 7 2 183 905 7.29
Non-Banking Finance Institutions, Insurance Co.
Modaraba and Mutual Funds
Foreign Investors 2 446 000 1.49
Individuals/ Others 620 6 147 637 20.49
661 30 000 000 100.00
Information as required under the Code of Corporate Governance

Categories of Shareholders Shareholders Shares Held
Associated companies, undertakings and Related Parties
EFU General Insurance Limited 1 11 851 218
NIT & ICP
ICP A/c-Col. M.A. Sheikh 1 800
ICP A/c-Noman Farooq 1 142
Investment Corporation of Pakistan 1 55
CEO, Directors, their spouses and minor children
Saifuddin N. Zoomkawala 1 70 002
Taher G. Sachak 1 219 420
Ashraf W. Tabani 1 350 100
Jahangir Siddiqui 1 8 400
Rafique R. Bhimjee 1 444 780
Muneer R. Bhimjee 1 1 649 995
Hasanali Abdullah 1 185 362
Mrs. Naila Bhimjee W/o. Rafique R. Bhimjee 1 386 571
Shareholders holding 10% or more voting interest
EFU General Insurance Limited 1 11 851 218
Jahangir Siddiqui & Co. Ltd. 1 5 994 498

Group Benefits - Offices
Karachi Islamabad
37-K, Block 6, P.E.C.H.S. 3rd Floor, Al-Malik Centre
Phone: 4535071-77 70W, Jinnah Avenue (Blue Area)
Phone: 2825271, 2820989, 2271371
Adeel H. Jaffery, Regional Manager
2820979, 2873382
Hasan Riaz, Group Manager
Hasan Aamir, Group Manager Noor-ur-Rehman, Senior Manager
Naveed-ul Haq Bhatti, Marketing Executive
Riaz Husain Soomro, Marketing Executive Faisalabad
S. Afsar Raza, Marketing Executive
2nd Floor, Ajmal Centre 289, Batala Colony
Lahore Phone: 8555981-87
Imran Yaqub, Marketing Executive
87-B-III, Gulberg Scheme No.3
Phone: 5870801-04
Multan
Fazal Mehmood, Regional Manager
Zaheer Aslam, Senior Manager 1st Floor, Rajput Commercial Centre
Faisal Masud, Manager Tareen Road, Near Gul Tax
Mubashar Ahmed, Manager Phone: 4588805, 4513603, 4512702
Tasleem Iqbal, Assistant Manager M. Shahzad Habib, Marketing Executive

Individual Life - Offices
KARACHI Jauhar Branch South Branch

41-E, Block 6, PECHS APWA Complex, F2, 67A, Garden Road
Cantt Branch
Phone:4386505-07, 4527135 & 36 Phone: 2241981-84
41-1/E, Block 6, PECHS
Phone: 4386505-7, 4527135 & 36 Muzaffar Ahmed Bughio, Manager Mustafa Hussain Ali, Group Manager
Zahoor Ahmed Khuhro, Manager Karsaz Branch Tower Branch

603, Park Avenue, Shahrah-e-Faisal 603, Park Avenue, Shahrah-e-Faisal
Central Branch
Phone: 4387319, 4531074, 4530328 Phone: 4387319, 4531074, 4530328
A-34, 1st Floor, Hafeez Centre
KCHSU, Shahrah-e-Faisal Fareed Ahmed Shaikh, Manager Asmatullah Tunio, Sr. Regional Manager
Phone: 4386340-44, 4384020, 4540389
Mayfair Branch West Branch
S. Arif Raza, Branch Manager 2nd Floor, Karim Chambers 2nd Floor, Karim Chambers
Merewether Road Merewether Road
City Branch
Phone: 5216368, 5215803, 5215764 Phone: 5216368, 5215803, 5215764
A-34, 1st Floor, Hafeez Centre, 5215257, 5654886 5215257, 5654886
KCHSU, Shahrah-e-Faisal
Phone: 4386340-44, 4384020 Husein Sachak,Group Manager Nadeem Alam Ansari, Manager
4540389, 4559126
Merewether Branch Zamzama Branch
Tariq Mehmood, Manager 2nd Floor, Karim Chambers Plot#10-C, Suite # 301 & 302, 3rd Floor
Merewether Road Comm. Street, Tareen Arcade
Faisal Branch
Phone: 5216368, 5215803, 5215764 Zamzama, Phase V
41-1/E, Block 6, PECHS 5215257, 5654886 Phone: 5822741-43
Phone: 4386505-7, 4527135 & 36
Rehan Anwar, Branch Manager Srichand Lalwani, Sr. Branch Manager
Shamsuddin Shaikh, Group Manager
New City Branch Bin Qasim Branch
Garden Branch
180-A Liberty Square 1st Floor, C-15, Phase#1
APWA Complex, F2, 67A, Garden Road Block-2, Off Tariq Road Gulshan-e-Hadeed, Bin Qasim
Phone: 2241981-84 Phone: 4300930-31, 4300932, 4300934 Phone: 4715070-72
Nadim Iqbal Hasni, Branch Manager Asmatullah Tunio, Sr. Regional Manager Ghulam Shabbir Mirani, Manager
Gulshan Branch North Branch Quaidabad Branch

Room No: 518, 5th Floor EFU House 2nd Floor, Karim Chambers 1st Floor, C-15, Phase#1
M.A. Jinnah Road Merewether Road Gulshan-e-Hadeed, Bin Qasim
Phone: 2311964, 2311969 Phone: 5216368, 5215803, 5215764 Phone: 4715070-72
Sultan Ahmed Ghumro, Manager 5215257, 5654886
Tanwir Ahmed Baloach, Manager
Farrukh N. Ansari, Branch Manager
Gulshan-e-Hadeed Branch DAHARKI
1st Floor, C-15, Phase 1 Pioneer Branch
Gulshan-e-Hadeed, Bin Qasim A-34, 1st Floor, Hafeez Centre, KCHSU Daharki Branch
Phone: 4715070-72 Shahrah-e-Faisal Near Khushali Bank Ltd, Main Road
Rabnawaz Ghumro, Sr. Branch Manager Phone: 4386340-44, 4384020 Daharki, Dist Ghotki
4540389, 4559126 Phone: (0723) 642424, 643440
Indus Branch Nasir Rashid Bhatti, Branch Manager Abdul Rasheed, Manager
A-34, 1st Floor, Hafeez Centre, KCHSU
Shahrah-e-Faisal Prime Branch
Phone:4386340-44, 4384020, 4540389 A-34, 1st Floor, Hafeez Centre, KCHSU
S. Shahid Hussain Zaidi, Manager Shahrah-e-Faisal
Phone: 4386340-44, 4384020, 4540389
Manzoor Hussain, Manager

GHOTKI LARKANA Indus Branch
Near Qasim Park
Ghotki Branch Larkana Branch
Opp: Queens Garden, Queens Road
Shadani Shopping Centre 1st Floor, Bukhari Shopping Centre Phone: (071) 5627067, 5622304
Near Police Station Station Road
Phone: (0723) 684107 Phone: (0741) 457434-37, 446702, 446700 Nazir Ahmed Solangi, Branch Manager
Adil Mahmood Samejo, Branch Manager Fateh M. Khuhawar, Branch Manager Sukkur Branch
Near Qasim Park
HYDERABAD MIRPURKHAS
Opp: Queens Garden, Queens Road
Phone: (071) 5627067, 5622304
Cantt Branch Mirpurkhas City Branch
3rd Floor, Abdullah Chambers APWA House, Opp: Gama Stadium Zaheeruddin Ghumro, Sr. Branch Manager
Near Hotel Faran, Saddar Main Hyderabad Road
ISLAMABAD
Phone: (022) 2785217 & 18 Phone: (0233) 63157- 59
Zaheeruddin Baber, Branch Manager Suresh Kumar, Branch Manager Islamabad Branch
3rd Floor, Al-Malik Centre,
City Branch NAUSHERO FEROZE
70W Jinnah Avenue (Blue Area)
B-15/9, RECHS, Opp: Latifabad Unit 3 Phone: (051) 2820989, 2271371, 2820979
The Auto Bahn Naushero Feroze Branch
2873382, 2873379
Phone: (022) 3814239, 3814235-36 Mumtaz Manzil, Opp: Al-Mehran Hotel
Main Road M.Younis Butt, Regional Manager
Dileep Nenwani, Sr. Branch Manager
Phone: (0242) 448661, 520349
AHMEDPUR EAST
Indus Branch Haji Mohammad Dayo, Manager
3rd Floor, Abdullah Chambers Ahmedpur East Branch
Near Hotel Faran, Saddar. NAWABSHAH
Qasim Khan Plaza
Phone: (022) 2784628-29, 2785217 & 18 Opp: Rizwan Chargha House
Nawabshah Branch
Zeeshan Hyder, Manager Katchery Road
Flat No.6, Tayyaba Shopping Centre Phone: (06222) 71358
1st Floor, Katchery Road
Mehran Branch M. Zahid Bashir, Manager
Phone: (0244) 372807, 372808, 365033
3rd Floor, Abdullah Chambers
Near Hotel Faran, Saddar Abdullah M. Ghumro, Manager ATTOCK
Phone: (022) 2784628, 2785217 & 18
RANIPUR Attock Branch
M. Umer Keerio, Branch Manager
Noble Plaza, Opp: People’s Colony Road
Ranipur Branch
JACOBABAD Kamra Road, Attock City
Opposite Five Star Service Station Phone: (0572) 602067
N.H.W. Ranipur, District Khairpur
Jacobabad Branch M. Faisal Kiyani, Manager
Phone: (0423) 500377
1st Floor, National Autos
Main Quaid-e-Azam Road Zaheeruddin Ghumro, Sr. Branch Manager BAHAWALPUR
Phone: (0722) 516476, 654391, 650156
SUKKUR Bahawalpur Branch
Irfan Iqbal, Branch Manager
University Chowk, Bahawalpur
City Branch
KHAIRPUR Phone: (062) 2282269, 2282475, 2282484
Near Qasim Park
Opp: Queens Garden, Queens Road Abdul Jabbar, Manager
Khairpur Branch
Phone: (071) 5627067, 5622304
A-5, 3rd Floor, Civic Centre, Khairpur Mirs Cantt Branch
Phone: (0243) 714330, 714337, 554016 Shahzado Mal, Manager
University Chowk, Bahawalpur
Jamaluddin, Manager Phone: (062) 2282269, 2282475, 2282484
Junaid Masud, Branch Manager

City Branch Khanpur City Jinnah Branch
University Chowk, Bahawalpur Near DSP Office 18-C-1, Commercial Zone
Phone: (062) 2282269, 2282475, 2282484 Model Town B 1st Floor, Liberty Market, Gulberg III
Phone: (068) 5575263, 5577809 Phone: (042) 5716072-74
Kashif Azeem, Sr. Branch Manager
Sikandar Arshad, Manager S.M. Raza Zaidi, Branch Manager
Fort Branch
University Chowk, Bahawalpur LAHORE Metropolitan Branch
Phone: (062) 2282269, 2282475, 2282484 18-C-1, Commercial Zone
Capital Branch 1st Floor, Liberty Market, Gulberg III
Waqar Asif Mullick, Manager
18-C-1, Commercial Zone Phone: (042) 5716072-74, 5789551
3rd Floor, Liberty Market, Gulberg III
FAISALABAD Zahid Ali Raza, Branch Manager
Phone: (042) 5789549-50, 52, 54
Chenab Branch Iftikhar Hassan, Manager Ravi Branch
2nd Floor, Ajmal Centre 289, Batala Colony 43-L, 1st Floor, Gulberg II, M.M. Alam Road
Phone: (041) 8555981-84 City Branch Phone: (042) 5871235-7
18-C-1, Commercial Zone
Tajamal Khan, Branch Manager Tanveer Ahmed Khan, Sr. Branch Manager
3rd Floor, Liberty Market, Gulberg III
Faisalabad Branch Phone: (042) 5789549-50, 52, 54 Shalimar Branch
2nd Floor, Ajmal Centre 289, Batala Colony Shahid Iqbal Bhatti,Sr. Branch Manager 18-C-1, Commercial Zone
Phone: (041) 8555981-84 1st Floor, Liberty Market, Gulberg III
Civic Branch Phone: (042) 5716072-74
M. Ihsan-ul-Haq, Branch Manager
43L, 1st Floor, Gulberg II, M.M. Alam Road
Ejaz Ahmed Arshad, Branch Manager
GUJRANWALA Phone: (042) 5871235-7
Mahmood Ahmed, Branch Manager MANDI BHAUDDIN
Gujranwala Branch
2nd Floor, AWR Plaza Crescent Branch Mandi Bhauddin Branch
Main G.T. Road 18-C-1, Commercial Zone 2nd Floor, Jamil Plaza, Old GTS Station
Phone: (055) 3734104, 3731660 3rd Floor, Liberty Market, Gulberg III Phone: (0546) 520955-6
Zahid Khan, Branch Manager Phone: (042) 5789549-50, 52, 54
Faisal Tahir, Manager
Malik Azhar, Manager
GUJRAT MULTAN
Defence Branch
Gujrat Branch 43-L, 1st Floor, Gulberg II, M.M. Alam Road Cantt Branch
Dhakkar Plaza, Rehman Shaheed Road Phone: (042) 5871235-7 1st Floor, Rajput Commercial Centre
Phone: (053) 3514246, 2112484, 3607033 Tareen Road, Near Gul Tax
Mian Kashif Naseer, Manager
Kh. Mujibur Rehman, Sr. Branch Manager Phone: (061) 4588805, 4512702, 4517787
Fort Branch M. Abid Raza Shah, Branch Manager
JHELUM 43-L, 1st Floor, Gulberg II, M.M. Alam Road
Phone: (042) 5871235-7 City Branch
Jhelum Branch 1st Floor, Rajput Commercial Centre
Waqar Asif Mullick, Manager
1st & 2nd Floor, Fazal Plaza, Civil Lines Tareen Road, Near Gul Tax
Phone: (0544) 610287-88 Phone: (061) 4588805, 4512702, 4517787
Gulberg Branch
Kh. Mujibur Rehman, Sr. Branch Manager 18-C-1, Commercial Zone Wazir Ali Zaidi, Branch Manager
1st Floor, Liberty Market, Gulberg III
KHANPUR
Phone: (042) 5716072-74 Multan Branch
1st Floor, Rajput Commercial Centre
Khanpur Branch S. Mehdi Raza Zaidi, Manager
Tareen Road, Near Gul Tax
Near DSP Office Phone: (061) 4588805, 4512702, 4517787
Model Town B
M. Kashif Riffat, Sr. Branch Manager
Phone: (068) 5575263, 5577809
Imtiaz Husain, Branch Manager

Multan Fort Branch ABBOTABAD HUB CHOWKI
1st Floor, Rajput Commercial Centre
Abbotabad Branch Hub Chowki Branch
Tareen Road, Near Gul Tax
Phone: (061) 4588805, 4512702, 4517787 1st Floor, Al-Fateh Shopping Centre Flat 1, 1st Floor, Bismillah Market
Opp: Radio Station, Mansehra Road Main RCD Road
S. Hasnain Mehdi, Manager Phone: (0992) 341978 Hub, District Lasbella
Phone: (0853) 302115
RAHIM YAR KHAN M. Younis Butt, Regional Manager
Jagdeesh Kumar, Manager
City Branch DERA ISMAIL KHAN
AZAD KASHMIR
Near Garden Marriage Hall
Dera Ismail Khan Branch
Opp: Town Hall
Najeeb Centre, 1st Floor, Kotli Branch
Phone: (068) 5880034, 5884365
East Circular Road Poonch Road, Opp. Gulistan Plaza
Islam-ul Haq Shami, Branch Manager Phone: 0300 8291060 Rathore Plaza, Kotli
Phone: (058660) 45621
Rahim Yar Khan Branch Ayub Khan, Sr. Branch Manager
Near Garden Marriage Hall Sardar Zakaullah Khan, Branch Manager
PESHAWAR
Opp: Town Hall
Phone: (068) 5884457, 5880034
Peshawar Branch
Mukhtar A. Tabassum, Branch Manager Suit No, 1,2,3, 2nd Floor, Azam Towers
Arbab Road Stop,Jamrud Road
RAWALPINDI
University Town
Phone: (091) 5852921, 5843404
Rawalpindi Branch
5852922, 5852923
2nd Floor, 20B, North Star Plaza
Murree Road, Rehmanabad. S. Jameel Abbas, Manager
Phone: (051) 4581364, 4581365, 4581366
QUETTA
M. Atif Khan, Branch Manager
Chiltan Branch
SARGODHA
1st Floor, Shaheen View, Model Town
Hali Road
Sargodha Branch
Phone: (0812) 2841696, 2834831, 2827787
1st Floor, 66- Civil Line, Court Road
Khan Arcade Kantesh Kumar, Branch Manager
Phone: (048) 3725516-18
Dera Allah Yar Branch
Akhtar Husnain Akhtar, Manager Main Quetta Road, Dera Allahyar
Phone: (0838) 510636, 510840
SIALKOT
Irfan Iqbal, Branch Manager.
Sialkot Branch
1st Floor, Riaz Plaza
Quetta Branch
Adj. Saudi Pak Bank, Paris Road 1st Floor, Shaheen View, Model Town
Phone: (052) 4264167 & 68, 4262363 Hali Road
Phone: (0812) 8434831, 2841696, 2827787
Zahid Khan, Branch Manager
Shahjahan, Group Manager

E F U LIFE ASSURANCE LTD
Form Of Proxy
I/ We
of
being a member of E F U L I F E A S S U R A N C E LT D hereby appoint
Mr.
of
or failing him
of
as my/our proxy in my/our absence to attend and vote for me /us and on my/our
behalf at the 15th Annual General Meeting of the Company to be held on
Saturday April 28, 2007 at 10:30 a.m. and at any adjournment thereof.
Signed this day of April 2007.
WITNESSES:
1. Signature: Revenue
Stamp
Name:
Address:
Signature of Member(s)
CNIC Or
Passport No: Shareholder's Folio No.
2. Signature: and/or CDC
Name: Participant I.D.No.
Address: and Sub Account No.
CNIC Or
Passport No:
Important:
This form of Proxy, duly completed, must be deposited at the Company's Registered Office at
Al-Malik Centre, 70 W, F-7/ G-7 Jinnah Avenue (Blue Area) Islamabad not later than 48 hours before
the time appointed for the meeting.
CDC Shareholders and their Proxies are each requested to attach attested photocopy of their Computerized
National Identity Card (CNIC) or Passport with this proxy form before submission to the Company.
CDC Shareholders or their Proxies are requested to bring with them their Original Computerized National
Identity Card or Passport alongwith the Participant's ID number and their account number at the time
of attending the Annual General Meeting in order to facilitate their identification.
EFU Life Branch
Network
Abbottabad
1 Attock 1
Peshawar 1
Islamabad 1
Rawalpindi 1 1 Kotli (A.K.)
Jhelum 1 Gujrat
Mandi Bahuddin 1 1 1
1 Sialkot
Sargodha 1
Gujranwala
2 11
Faisalabad Lahore
3
Quetta
4
Khanpur Multan
2 1
Ahmedpur East 4
Jacobabad
Daharki Bahawalpur
1 2
1 Rahim Yar Khan
Sukkur 1
Larkana 1 3 Ghotki
1
1 Khairpur
Naushero Feroze 1 Ranipur
1
Hub Nawabshah
Mirpurkhas
1 4 1
22 Hyderabad
Karachi
EFU LIFE ASSURANCE LTD Annual Report 2006

Designed & Produced by G.H. Thaver & Co. (Pvt) Ltd.

Annual Report Apr2006

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Annual Report Apr2006

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1932

75 Years: Reaching this

We possess Report of the

EFU LIFE ASSURANCE LTD Annual Report 2006

Our values give us a sharply defined customer focus which

As a body corporate, we daily rededicate ourselves to winning

By focusing on what we do best and doing it better tomorrow

2 Annual Report 2006 EFU LIFE ASSURANCE LTD

Promises are given credence by the ability to keep them.

The company has registered strong profitability in the last

EFU LIFE ASSURANCE LTD Annual Report 2006 3

The success of our past enables us to look ahead with

In these momentous changes, we see an emerging number

Our financial strength and single-minded management focus

4 Annual Report 2006 EFU LIFE ASSURANCE LTD

• Working together as a team

EFU LIFE ASSURANCE LTD Annual Report 2006 5

EFU Life launched an SMS-based service,

6 Annual Report 2006 EFU LIFE ASSURANCE LTD

EFU Life signed a Bancassurance

The market value of our Managed

EFU Life hosted a one day conference

Speakers from Sidat Hyder, the Insurance

EFU LIFE ASSURANCE LTD

8 Annual Report 2006 EFU LIFE ASSURANCE LTD

Managing Director & Chief Executive Senior Managers

EFU LIFE ASSURANCE LTD Annual Report 2006 9

Audit Committee Claim Settlement Committee

10 Annual Report 2006 EFU LIFE ASSURANCE LTD

EFU LIFE ASSURANCE LTD Annual Report 2006 11

8. transact any other matter with the permission of the Chair.

By Order of the Board

SYED MEHDI IMAM

A. For attending the meeting:

12 Annual Report 2006 EFU LIFE ASSURANCE LTD

2. Item 5 regarding Bonus issue:

3. Item 6 regarding investment in associated company:

EFU LIFE ASSURANCE LTD Annual Report 2006 13

4. Item 7 regarding increase in Authorised Capital:

14 Annual Report 2006 EFU LIFE ASSURANCE LTD

One of the key indicators of EFU Life’s success is its 2,285

EFU Life maintained its growth trajectory by showing 1,296

EFU LIFE ASSURANCE LTD Annual Report 2006 15

and group life claims amounting to Rs. 113 million 113

16 Annual Report 2006 EFU LIFE ASSURANCE LTD

EFU LIFE ASSURANCE LTD Annual Report 2006 17

HASANALI ABDULLAH RAFIQUE R. BHIMJEE TAHER G. SACHAK SAIFUDDIN N. ZOOMKAWALA

18 Annual Report 2006 EFU LIFE ASSURANCE LTD

2006 2005 2004 2003 2002 2001

EFU LIFE ASSURANCE LTD Annual Report 2006 19

4. No casual vacancy occurred in the Board during the year.

Annual Report 2006 20 EFU LIFE ASSURANCE LTD

HASANALI ABDULLAH RAFIQUE R. BHIMJEE TAHER G. SACHAK SAIFUDDIN N. ZOOMKAWALA

EFU LIFE ASSURANCE LTD Annual Report 2006 21

GARDEZI & CO. KPMG TASEER HADI & CO.

Karachi March 24, 2007

Annual Report 2006 22 EFU LIFE ASSURANCE LTD

We have audited the annexed financial statements comprising:

GARDEZI & CO. KPMG TASEER HADI & CO.

Karachi March 24, 2007

EFU LIFE ASSURANCE LTD Annual Report 2006 23

Share capital and reserves

Accumulated surplus 240 248 240 248 196 279

Balance of statutory fund