EFU LIFE ASSURANCE LTD

PAKISTAN

BY

Shoaib Jawad MBE-13-48

MBA Evening Session 2013-2017

Bahauddin Zakariya University Multan

 Dedication

.to the martyred students of Army Public School, Peshawar

 ACKNOWLEDGEMENT

All acclamation to ALLAH, who has empowered and enabled us to accomplish this task
successfully. First of all I would like to thank our ALLAH Almighty who really helps me in
every problem during this project. I would like to express my sincere and humble gratitude to
Almighty, whose blessings, help and guidance has been a real source of all my achievements in
my life.

I would like to admit that I completed this project due to our respected parents who pray
for our success.

I also wish to express our appreciation to my respected teachers who helps me and
introduce us to the new dimensions of knowledge.
 Table of Contents
Executive Summary

Chapter 1

Overview of the Organization

History.
Vision, Mission and Value..
Vision Statement
Mission Statement
Value
Products and Services of the Company ..
For Individual
For Group
Hemayah Takaful
Strategies used by the Organization..
Strategies in our Communities
Strategies start with our people
Strategies to make difference
Competitors.

Chapter 2

Organizational Structure

Organizational Hierarchy Chart

Branches and Employees
Departments of Company
Underwriting Department
Human Resource Department.
Marketing Department.
Claims Department..
Accounts Department.
My Comments on Organizational Structure.

Chapter 3

My Internship Program

Introduction of Branch
Hierarchy of Multan Branch
My Work at EFU
Chapter 4

Marketing Department

Marketing Hierarchy..
Marketing Operations.
Situation Analysis...................................................
Marketing Strategy
Marketing Mix Decision
Implementation and Control

Chapter 5

Marketing Functions

Market Segmentation....
Geographic Segmentation..
Demographic Segmentation
Behavioristic Segmentation.
Company Type..
Target Marketing
Positioning Strategy.
Pricing Strategy.
Promotion Strategy..
Advertising.
Sales Promotion

Chapter 6

Sales Functions

Sales Department
Sales functions and responsibilities .

Chapter 7

Financial Analysis

Balance Sheet of EFU Life.

Income Statement of EFU Life
Ratio Analysis...
Profitability Analysis
Liquidity Analysis..........................
Long Term Debt Paying Analysis.
 Analysis for Investor..
Interpretation
Vertical and Horizontal Analysis of Financial Statements..

Chapter 8

Critical Analysis

Critical Analysis

Chapter 9

SWOT Analysis

SWOT Analysis
Strength
Weakness
Opportunity
Threats

Chapter 10

Conclusion & Recommendations

Conclusion
Recommendations.
Executive Summary
 Executive Summary
In 1992, the Government of Pakistan reopened the life insurance business to the private
sector organizations and EFU Life Assurance Ltd was incorporated in November 1992 as the
first private sector life insurance company. In early 1993, EFU Life commenced writing group
life insurance business and by March 1994, the company began writing its individual life
business.

EFU Life is managed by a team of professionals with extensive life insurance experience
in the United Kingdom. This has helped the Company establish a professional culture unique
amongst life insurance business in Pakistan.

The Company has a growing branch network of 200 branches throughout the country
with employee strength of 3500 personnel at its main offices in Karachi and Lahore. The
company employs 4 full time actuaries and also has an active involvement of one of the leading
actuarial firms in the country.

EFU Life is the first life insurance company in Pakistan to be awarded the ISO
9001:2000 certification, and also the only life insurance company to have an "Insurer Financial
Strength" rating which is currently AA-, Outlook: Stable, by JCR-VIS, an affiliate of Japan
Credit Rating agency.

Today, EFU Life continues to be the largest private sector life insurance company in
Pakistan. In 2014, EFU Lifes has a market share of 37.9% in the private life insurance sector
companies based on the gross premium income and 48.3% by size of assets.

EFU Life has a comprehensive range of products which has been developed after
extensive research of financial services in western countries such as the United Kingdom. These
products are designed to meet the varying needs of EFU Lifes clients and offer the best in
financial services.

EFU Lifes product range is the most competitive in the market in terms of value for
money. The Company continuously reviews its product range to ensure that it remains at the
leading edge.
 I joined EFU life Assurance Multan Central Branch for my internship from 1-07-2016 to
15-08-2016. There was a lot of work and opportunity for me to understand how work is carried
out. I tried my best to exploit this opportunity.

My in charge for my internship was Sir Sohail. He was a gentle and corporative
personality. He made schedule for my six weeks internship program. I worked in 6 different
departments, a week in each department.
Overview of the Organization
 Overview of the Organization

History
In the early 30s of the 20th century, under the inspiration of the Quaid-e-Azam
Mohammad Ali Jinnah, there began to appear signs of economic renaissance of the Muslims of
India. Shipping, Airline, Banking and Insurance companies made their debut.

In 1932, Mr. Ghulam Mohammad, a far sighted man, established Eastern Federal Union
Insurance Company (EFU) with financial assistance from the Aga Khan III and the Nawab of
Bhopal. Mr. Abdur Rehman Siddiqui became the founder chairman. The company was originally
registered at Kolkata and operated in India (undivided) and Burma.

In 1947, on the birth of Pakistan, EFU found a new home in a new country. In Pakistan,
EFU rapidly established itself as a progressive and innovative insurer. It gave the emerging
insurance industry the leadership, the manpower and the drive needed to grow in a situation
where at one time, three-fourths of insurance was held by foreign companies.

By 1961, EFU had become the flag bearer of Pakistan's insurance industry on the world
stage, and the largest life company in Afro-Asian countries (excluding Japan) under the
leadership of Mr. Roshen Ali Bhimjee. It remained so until 1972 when Life Assurance business
in Pakistan was nationalized. Thereafter EFU operated solely as a General Insurance Company,
and was subsequently renamed EFU General Insurance Limited. Now EFU General is the second
largest non-life insurance company in the country and the mother company of other insurance
organizations of EFU Group.

In June 1990 the Government of Pakistan decided to allow Life Assurance business in
private sector also. On 18 November 1992, EFU Life was granted a license to carry on life
assurance business. It started operations immediately with Group Life products and in March
1994 launched its Individual Life products. EFU entered the field of life assurance with the focus
on the changing needs of the population. The company is committed to provide its policyholders
with solutions to the problems of today's complex and rapidly changing financial environment by
introducing innovative and modern products.

In March 2000, Allianz Aktiengesellschaft (Allianz AG), a global leader in the insurance
industry with an active presence in 70 markets across 5 continents and EFU Group signed a joint
venture to form a new company for providing health insurance cover to the people of Pakistan.
Allianz EFU Health Insurance Limited, approved by the Government of Pakistan, is the first
specialized health insurance provider in the country and aims to play a pivotal role in developing
the health insurance market in Pakistan.

Traditionally the EFU name has become synonymous with progressiveness and prompts
claim settlement and now the EFU being the largest insurance group provides a full range of
general, life and health insurance services.

EFU is the leading insurance group in Pakistan providing a full range of insurance
services. This includes life, health and general insurance. A pillar of EFU's strength lies in its
close and long-term (over 50 years) relationship with its main reinsurer, Munich Re of Germany,
one of the largest reinsurance companies in the world.
Vision, Mission and Values
Vision Statement
Our vision is to make EFU Life one of the most respected and successful financial
service organizations in the world. Our strategy is to achieve our vision is: build our core
capability, serve our client beyond their expectation, and adhere to our core value and good
corporate citizen.

Mission Statement
Our mission is to provide services beyond expectation with the will to go extra miles. In
the process, continue to upgrade the technology, human resource and reinsurance protection

We will do good business, with good clients and of the highest integrity. We will not
compromise our principles and we will like to be known as a responsible corporate citizen aware
of our obligation to the Government and the society we serve.

Values
Character: Our Business principles for achieving exceptional success are a belief that
our corporate conduct should base on uncompromising integrity, ethics and honesty.

Pride: We believe that people want to excel and that extraordinary result can be
achieved, if given the right support and work climate.

Service: Our clients are the reasons for being in business. We shall deliver to them the
highest quality of flawless service to win and keep their loyalty.

Commitment: we nurture and develop our people to be good human beings, work
together as a team to achieve our organizational objectives and obligations, while at the same
time fulfill their aspirations.
Products and Services of the Company
EFU life assurance providing its customers the following products

For Individual
For Group
Hemayah Takaful

For Individual

1. Prosperity For Life

EFU Life brings you Prosperity for Life a flexible and high value savings and
protection plan that ensures that your dreams become a reality at all stages of life throughout
your life

Main features of the plans are mention below:

Choose different level of insurance protection for the same amount of premium.

Change your level of life cover as your circumstances change.

Get loyalty reward through guaranty loyalty bonus.

Benefits from the plans high investment allocation.

Participate in the return of EFU Growth Funds.

Cover yourself through whole of life insurance protection.

 Access your saving when you need it

Add supplementary benefits to tailor the plan to your needs.

2. Education Plan
With EFUs Education Plan, you can make sure unlike other parents your dream for your
children become a reality.

Guarantee their education if you die in some unfortunate event of your death prior to the
maturity of plan, you would want to make sure that you education plans for your children will
still be fulfilled.

The continuation benefits, which is built in the plan, will assure in all future contribution
will be paid by EFU following your death and until the plan maturity date. This means that the
education funds you had originally planned for will still be available for your children.

To deal with the problem of funding school fees after your death, Education plan also
provides an income benefits. This benefit, which is optional, provide the fixed amount, payable
quarterly in advance , to ensure the school fees continuously meet.

3. Marriage Plan
EFU Marriage Plan helps you save systematically so that you can give your child the
much needed financial security for the year to come. The plan provides a complete financial
planning package for you to plan expenses associated with your childrens marriage. Planning in
advance through your Marriage Plan for your childs or even grandchilds wedding celebration
now allows you to spread cost overtime, giving your saving a chance of significant growth.

4. SAVING PLAN
The EFU Savings Plan is a high value savings and investment vehicle, which offers
higher unit allocation in the early policy years and provides valuable life insurance coverage. The
large funds accumulated during the savings term can be utilized for higher education or marriage
of children, buying a house, providing for regular income after retirement and any other purpose.
The plan is highly flexible and responds to the needs of the individual. The plan aims to
accumulate contributions and provide a large sum at the end of the savings term.

The Opportunity Growth

The contribution to the plan will buy units in the one of the EFU Growth Funds. The
Saving Plan is designed to provide a large cash sum at the end of your selected period.

Retirement Income

At the maturity of the Plan your need may be for a regular retirement income as opposed
to a lump sum.

5. SECURITY PLAN
The need to provide high life cover at a minimum cost may arise for a number of reasons.
For example you may need:

To provide a replacement income for your family on your death

To ensure that your early death does not jeopardize your future plans for your children in
terms of their education, wedding etc.

To protect the continuity of your business by ensuring that funds are available for your
beneficiaries.

EFU Security Plan is a term assurance contract which allows you to provide protection
against the financial consequences of death at a very low cost.

For Group
 Although everyone has a need for life insurance, people in different life stages may have
different needs. Employees want to ensure whether their families will be able to meet any
financial obligations and carry out basic living expenses should a death occur.

In today's environment, employers seeking to attract and retain high-quality employees

must appeal to a more diverse workforce, consisting of people in various stages of life. They are
challenged to create an employee compensation package that is attractive to a broad range of
people, but which also conserves money and administrative time.

Group cover from EFU Life offers a variety of coverage options. Employers may select
basic and supplemental coverage amount to fit the requirements of the group.

Coverage

Death

Group Accidental Death Benefit

Group Accidental Disability Benefit

Fortnightly Income Benefit

Group Natural Disability Benefit

Group Terminal Illness Benefit

Group Critical Illness Cover

Group Loan Insurance

Group Provident Fund Insurance

Hemayah Takaful
 Takaful is a Shariah compliant way of safeguarding yourself and your family against
future financial losses. A takaful product assists participants to share their risk on the basis of
cooperation, brotherhood, mutuality, and solidarity for common good. Key components of
Takaful are as follows:

Individuals in the community come together on a common platform and contribute into a Waqf
Fund, operated by a Takaful Operator (us), to protect themselves against future financial losses.

The Takaful Operator acts as an administrator of the Waqf Fund and carries out its role in the
form of a Wakeel (Manager).

Any participant who suffers or incurs a financial loss is compensated from the Waqf Fund.

At the end of every year, any excess amount (Surplus) left in the Waqf Fund after paying off
claims and meeting expenses may be distributed amongst the participants as per the advice of the
Shariah Advisor and the Appointed Actuary.

Strategies Used by the Organization

To reach the target audience, to attract the customer, to fulfill their goals EFU Life use
some strategies. Through these strategies company attract the customer towards their products
and services.

Strategies In Our Communities

Where there is opportunity, there is hope for a better tomorrow.

EFU Life is committed to nurturing and fulfilling hopes of our policyholders through
innovative quality products. Conduct business on a sound financial basis and adhere to the
highest ethical and professional standards.
 Our clients come from all backgrounds and all walks of life. They depend upon us for
their financial security and to fulfill their dreams, because they know we deliver.

Strategies Starts With Our People

People come first at EFU Life.

Our investment in the nurturing of talent and acknowledgment of skills makes us the
employer of choice in the industry.

By developing strong relationships internally we are well-equipped to develop equally

strong relationships with clients across our markets.

At EFU Life there is a strong commitment from each member

Strategies To Make A Difference

EFU Life launched an extensive Media Campaign in 2008 to create awareness about
financial planning using the concept of Child Marriage and Education, and Retirement.

To reach a wide target audience, EFU Life utilized the medium of Television, Print and
Radio for its advertisements. This was the first of its kind integrated media campaign by any life
insurance company in the country.

The theme of the campaign is Zaroori Hai which signifies that like many zaroori
things and events in life, planning for future financial security of ones family is also zaroori.

Competitors
State Life Insurance Company of Pakistan

American Life Insurance Co.Pk.ltd

Jubilee Insurance Company Limited

 Adamjee Life Insurance Company Limited

East West Life Insurance Company Limited

UBL Insurance Limited

Shaheen Insurance Company Limited

Habib Insurance Company Limited

Asia care Health and Life Insurance Company Limited

Organization Structure
 Organization Structure

Organization Hierarchy Chart

BOARD OF DIRECTORS

Management
Managing Director & Chief Executive Deputy General Managers

Taher G. Sachak Arshad Iqbal

Ashfaque Ahmed

Executive Directors Assistant General Managers

Mohammed Ali Ahmed Adeel Ishaque

S. Shahid Abbas Aman Hussain

Zain Ibrahim Dr Naila Salman

Medical Director Managers

Dr. Tajuddin A. Manji, F.R.C.P., M.R.C.P. Akbar Husain Qazilbash

Chief Managers Ameer Abbas Mohammadi

Dr Ali Murtaza Khan Ann Aonica Zenobia

Evelyn D. Abrogena Dr Ammara Moazzum

Fawad Habib Faisal Zahir

Hasan Shaikh Farah Mushtaq

Rehan Siddiqui Farrukh Kidwai

Nilofer Sohail Irfan Abbas Hameer

Senior Managers Irfan Junejo

Abida Hasanali Irfan Qadir Malik

Ammar Qamar Jibran Masood Khan

Asim Maqbool Jawaid Mughal

Burhan Zahid Chughtai Rafi Malik

Dr. AsadulHadi Siddiqui Madiha Farid

Fahd Saifuddin Syed Majid Aziz

Mariam Ahmed Majid Aziz

Mohammad Abbas Mohammad Danish

Mohammad Zubair Wasim Qaiser

Naseeruddin Ahmed Usman Lodi

Branches and Employees
The Company has set up over 200 branches throughout the country and employs over
3500 persons in its sales force.

The head office of EFU is in Karachi. As The Company has a growing branch network of
over 200 branches throughout the country. For Bancassurance, the Company has a relationship
with over 16 major banks and offers simple to sophisticated life insurance products. For Group
Benefits, EFU Life has a marketing team which focuses on providing life insurance coverage to
corporate entities and bank clients.

EFU Largest private sector life insurance Company Strongest Financial base in the
private sector Highest paid up capital Diversified Portfolio offering Best Value Products Best
performing investment funds well trained sales force to provide solutions that match your needs.

Departments of the Company

Different functions of the company are performed by different department of the
company. Introduction of all departments is given blow.

Underwriting Department

Insurance underwriters evaluate the risk and exposures of potential clients. They decide
how much coverage the client should receive, how much they should pay for it, or whether even
to accept the risk and insure them. Underwriting involves measuring risk exposure and
determining the premium that needs to be charged to insure that risk. The function of the
underwriter is to acquireor to "write"business that will make the insurance company money,
and to protect the company's book of business from risks that they feel will make a loss. In
simple terms, it is the process of issuing insurance policies.

Each insurance company has its own set of underwriting guidelines to help the
underwriter determine whether or not the company should accept the risk. The information used
to evaluate the risk of an applicant for insurance will depend on the type of coverage involved.
For example, in underwriting automobile coverage, an individual's driving record is critical. As
part of the underwriting process for life or health insurance, medical underwriting may be used to
examine the applicant's health status (other factors may be considered as well, such as age &
occupation). The factors that insurers use to classify risks should be objective, clearly related to
the likely cost of providing coverage, practical to administer, consistent with applicable law, and
designed to protect the long-term viability of the insurance program.

One of the most important functions of the underwriter is creating a policy that will be
beneficial to both the customer and the insurance company. The underwriter must weigh the risks
of insuring a particular customer. Then, the rates will be established which a customer pays in
return for the insurance company agreeing to cover these risks. The underwriter must create a
policy that is suitable to the customer yet not too liberal as to expose the insurance company to
excessive claims.

Human Resource Department

Human Resource department is one of the most important department on which the
internal system of whole organization is based. It motivates the employee and takes in the
account the incentives and tactics required to keep the qualified and experienced employee with
them and to make them work in the way organization want. HR department have to perform
following duties.

Resource hunting and Recruitment

Coaching the Employee i.e. Training, Development etc

Motivation and Performance Appraisal

Salary and Payroll Negotiation

Employee Satisfaction and Feedback

 Marketing Department

EFU life has marketing team which focuses on providing life insurance coverage to the
corporate entities and different types of client.

EFU believes in the insurance business, we want to be perceived as a person who

markets instead of one who sells products. Individuals who believe their goal in life is to
sell you something; in many ways, these persons have greatly damaged the image of the
insurance and financial service industry.

In Insurance business when you market, we should be letting people know what services
we have to offer. As a person in the insurance industry, our job is to protect families from
financial disaster. We are supposed to make recommendations to clients who have holes in their
insurance portfolio. This idea that everyone needs the same life insurance or health insurance
policy is farcical. If you try to fit everyone with the same shoe or insurance policy, then you
reduce yourself to being an aggressive salesperson. We have enough corruption in every
industry; however, the insurance industry is amongst the most important, and it should be treated
with respect. WE could be the difference between a widow staying in her home or having to
move into an apartment.

EFU life recently launches mass media campaign after a long gap. Although EFU last
campaign had a serious tone, the new approaches are lightened and humorous.

The campaign was launched with a thematic ad; this was followed by three additional
ads for the marriage plan, education plan and retirement plan, which according to EFU are its
most important products.

The purpose of the new campaign is to educate consumers about the numerous benefits of
life insurance that they can avail during their lifetime as well as about the financial security it
offers to ones family when one is not around. We want to tell our consumers that life insurance,
because of all its benefits, should be an essential part of everyones life. Our [three print] ads are
focused on the different needs of our target market starting from savings to financial planning for
children in terms of education and marriage as well as financial stability for when one retires.
 Consumers generally perceive life insurance as a very serious and complicated
proposition. A common misconception is that it only provides support at the time of death, and as
market leaders, this is something that we wanted to change. We wanted to present the concept in
a celebratory mode as we think that any individual that takes the decision to protect his family
with life insurance deserves to be applauded and his decision to be celebrated. We have
consciously moved away from the traditional methods of life insurance advertising that promote
fear-appeal and rather we are focusing entirely on the positives and celebrations in life. Thats
why EFU use the words Life Assurance instead of Life Insurance.

Claims Department

It is quite tough and complicated process in which insured do not have any participation
other than just providing the exact information of claim. Staff should treat it with full attention as
claim procedure of insurance company establishes its goodwill in market, and helps to generate
more and more business. Guidance, Expertise, Knowledge of when to bring someone else in, all
provide an important service to client.

Accounts Department

The function of an accounting department is to look after the finances of a company. This
can be anything from paying bills to making sure that the employees that work for the company
get paid. The four main accounting functions are:

Making Payments

Payroll

Receiving Payments

Budgets

Making Payments
 Making sure that all bills and claims are paid by the company, on time and also at the
least cost possible .If there is a discount for paying quickly, the accounts department will usually
pay the bills as soon as possible so that the company spends as little money as they possibly can.
They are responsible for all outgoing payments and making sure that what they are paying is
correct.

Payroll

The accounts department has to ensure that the employees are all paid correctly and on
time. They also have to make sure that all of the employees are paying the right amount of tax
and that they have not made any mistakes with tax brackets and government payments on behalf
of the employees.

Receiving Payments

The accounting department must also receive payments and make sure that these are all
processed correctly. These will all be payments for the services or products the company has
provided and they must ensure that they have paid all relevant tax. There will also be an element
of chasing up payments and making sure that all of the payments are received when they should
be.

Budgets

They are also responsible for giving budgets and estimates of what they feel the company
should be spending. These may be split by department or function and they must also predict
budget figures for years to come so that the company knows what it should be spending and
more importantly, charging to customers.

Accounts department of EFU insurance have divided its duties into different sections.

Cash Collection Section

For the collection of cash, account department has a cash counter. When policyholder
comes to pay his premium, they check whether the policyholder is able to pay his premium or
not. If the policyholder comes within 30 days after the due date, then he is considered as able to
pay his policy otherwise he is not able.

Cash Disbursement Section

For cash disbursement, first the voucher is prepared, signed and prepared by authorized
officer, for the person to whom the payment is made. After these the cashbook is maintained,
cheques are prepared, and these cheques are sent to concerned party. Bank Statement is prepared
daily by the authorized banker regarding total collection and payments of cheques i.e. realization
of cheques. These banks Statements are punched into the computer.

Salary Preparation Section

In Account Department Salary of the employees is calculated. Different allowances are

offered to the employees. Loan facilities are available for the employees. Tax is deducted from
salary. A provision of recoveries of the loan is made. Budget Preparation Section Budget is
prepared annually. Proposed budget is sent to principal office. The funds of different heads of
proposed budget are transferred to zonal office.

My Comment on Organization Structure

The higher authorities should form team-based management rather than centralized
management. It would result in improvement in uplifting the morale of the employees. They will
be more motivated and involved in all their operations resulting in overall effectiveness of the
organization.
My Internship Program
Introduction of Branch
I joined EFU life Assurance Multan Central Branch for my internship. This branch is
located at 1st Floor, Rajput Commercial Centre, Tareen Road, Near Gul Tax, Tareen Road,
Multan, Pakistan.

There are different departments are working within this branch such as Marketing and
Sales Department, Training Department, Admin Departments, New Business Department,
Financial Department and Audit Department . Each Department has its own task or work to do
and they all are interrelated with each other.

Hierarchy of the Multan Branch

Group Manager Senior Unit Manager

Imtiaz Hussain Akbar Ali

Senior Brach Manager Kashif Hussain Malik

Kahsif Riffat Kashif Aslam

Branch Manager Haroon Rashid Khan

Abid Raza Shah S.M Raza Zaidi

Sayed Wazir Ali Zaidi Shah Shahid Abbas Chigtai

Assistant Branch Manager Unit Manager

Shahid Abbas Chigtai Sohail Ahmad

Kamran Gillani

Qasir ahmad

Farooq Ahmad

Wahid Javed
My Work at EFU
I joined EFU life Assurance Multan Central Branch for my internship from 1-07-2016 to
15-08-2016. There was a lot of work and opportunity for me to understand how work is carried
out. I tried my best to exploit this opportunity.

My incharge for my internship was Sir Sohail Ahmad. He was a gentle and corporative
personality. He made schedule for my six weeks internship program. I worked in 6 different
departments, a week in each department. The departments in which I worked are as follow:

Training Department

In my first week I spent my time in training department. In this department new

recruitments are trained, how to sell the policy and how to convince the client that life assurance
policy is very important for their life. Introduce the recruitments about the company and the
companys achievements. Basically what I observe in one week this department enhance the
convincing power of their employees.

Underwriting Department

I spent my second week in underwriting department. This is the department from where
the business of policy begins. In this department I learned the processing of new business that is
carried forward by the sale force. The main function of this department is the assessment of the
risk. The risk is assessed by keeping in view the different factors like personal data ,
occupation ,physical and social features , health , family history of the prospect , moral hazard ,
source of income , nomination , relationship between the nominee and the prospect.

Marketing Department

In my third week I have learned in Insurance business when you market, we should be
letting people know what services we have to offer. As a person in the insurance industry, our
job is to protect families from financial disaster.
 During this I have a visit of industrial state with some salesman of EFU Life who was
doing campaign of Life Insurance in some organization and I was a part of it. My task was to
introduce EFU and its achievements etc and I done it with full confidence.

Financial Department

The 4th department in which I went was financial department. As I am the student of
MBA marketing there was not much work for me there. I taught about preparation of vouchers,
banking, ledger and reconciliation of accounts etc.

Claim Department

It was a complicated process in which the client or a person who is insured claim for its
right and just the exact information of claim. Staff of the company handles this matter according
to the company procedure so the company makes its goodwill in the market.

General Insurance

I spend my last week to learn about General Insurance. I learned that general insurance is
non life insurance policy, including automobile and homeowners. I learned about the policy of
Motor insurance that how it takes place what are the procedures.

My experience of working with EFU Life Assurance was great. Overall management is
very supportive and most departments work as team. This company offers learning and growth
opportunity to hardworking and dedicated individual. At times it can be very demanding as its
not a typical 8-5 practically. During monthly, quarterly and yearly closings high volume of work
load demands late sitting that can be stressful and challenging.

Workplace environment at E.F.U Life Assurance is quite nice and my co-workers

participate and help me in learning new things. Management of the organization performs
average.
Marketing Department
Marketing Hierarchy

Senior Executive Directors

Altaf Kothawala
Jahangir Anwar Shaikh

Executive Directors
Abdul Razzak Bramchari
Abdul Wahab Polani
Ali Safdar
Muhammad Khalid Saleem,
Saleem Tariq Ahmed

Deputy Executive Directors

Agha S.U. Khan
Haroon Haji Sattar Dada
Mir Babar Ali, M.B.A.

Assistant Executive Directors

Abdul Wahab
Akhtar Kothawala
Khalid Mehmood Mirza
Muhammad Hussain
Muhammad Sheeraz
Shahab Khan,
Syed Jaweed Envor, L.L.B.
Syed Saad Jafri
Tauqir Hussain Abdullah
Yousuf Alavi
Marketing Operations

Under the marketing concept, the firm must find a way to discover unfulfilled customer
needs and bring to market products that satisfy those needs. The process of doing so can be
modeled in a sequence of steps: the situation is analyzed to identify opportunities, the strategy is
formulated for a value proposition, tactical decisions are made, the plan is implemented and the
results are monitored.

Typically, MO is the function responsible for marketing performance analysis, strategic

planning guidance and execution, budgeting, process development, professional development,
and marketing systems and data. The marketing operation is a process that guides the marketing
organization in becoming a value center to the rest of the company, by allowing the whole
enterprise to pull together to better meet revenue opportunities.

Situation Analysis
|
V
Marketing Strategy
|
V
Marketing Mix Decision
|
V
Implementation & Control

Situation Analysis

A thorough analysis of the situation in which the firm finds itself serves as the basis for
identifying opportunities to satisfy unfulfilled customer needs. In addition to identifying the
customer needs, the firm must understand its own capabilities and the environment in which it is
operating.

The situation analysis thus can be viewed in terms an analysis of the external
environment and an internal analysis of the firm itself. The external environment can be
described in terms of macro-environmental factors that broadly affect many firms, and micro-
environmental factors closely related to the specific situation of the firm.
 The situation analysis should include past, present, and future aspects. It should include a
history outlining how the situation evolved to its present state and an analysis of trends in order
to forecast where it is going. Good forecasting can reduce the chance of spending a year bringing
a product to market only to find that the need no longer exists.

If the situation analysis reveals gaps between what consumers want and what currently is
offered to them, then there may be opportunities to introduce products to better satisfy those
consumers. Hence, the situation analysis should yield a summary of problems and opportunities.
From this summary, the firm can match its own capabilities with the opportunities in order to
satisfy customer needs better than the competition.

There are several frameworks that can be used to add structure to the situation analysis:

Pest Analysis

SWOT Analysis

Marketing Strategy

Once the best opportunity to satisfy unfulfilled customer needs is identified, a strategic
plan for pursuing the opportunity can be developed. Market research will provide specific market
information that will permit the firm to select the target market segment and optimally position
the offering within that segment. The result is a value proposition to the target market. The
marketing strategy then involves:

Segmentation

Targeting (target market selection)

Positioning the product within the target market

Value proposition to the target market

Marketing Mix Decisions

 Detailed tactical decisions then are made for the controllable parameters of the marketing
mix. The action items include:

Product development - specifying, designing, and producing the first units of the
product.

Pricing decisions

Distribution contracts

Promotional campaign development

Implementation and Control

At this point in the process, the marketing plan has been developed and the product has
been launched. Given that few environments are static, the results of the marketing effort should
be monitored closely. As the market changes, the marketing mix can be adjusted to accommodate
the changes. Often, small changes in consumer wants can address by changing the advertising
message. As the changes become more significant, a product redesign or an entirely new product
may be needed. The marketing process does not end with implementation - continual monitoring
and adaptation is needed to fulfill customer needs consistently over the long-term.
Marketing Functions
 Marketing Functions
The marketing concept is the philosophy that firms should analyze the needs of their
customers and then make decisions to satisfy those needs, better than the competition. The basic
function of marketers is to find the customer whose need they are going to satisfied. This process
is done by market segmentation.

Market Segmentation
Market segmentation is the identification of portions of the market that are different from
one another. Segmentation allows the firm to better satisfy the needs of its potential customers.

In EFU Life Consumer markets segmented on the following customer characteristics

Geographic

Demographic

Behavioralistic

Geographic Segmentation
The following are some examples of geographic variables often used in segmentation by
the company.

Region: by continent, country, state, or even neighborhood

Size of metropolitan area: segmented according to size of population

Population density: often classified as urban, suburban, or rural

Climate: according to weather patterns common to certain geographic regions

Demographic Segmentation
Some demographic segmentation variables include:

Age

Gender

Family size

Family lifecycle

Income

Occupation

Education

Many of these variables have standard categories for their values. For example, family
lifecycle often is expressed as bachelor, married with no children (DINKS: Double Income, No
Kids), full-nest, empty-nest, or solitary survivor. Some of these categories have several stages,
for example, full-nest I, II, or III depending on the age of the children.

Behavioristic Segmentation
Behavioral segmentation is based on actual customer behavior toward products and
services. Some behavioristic variables which company consider in their customers include:

Benefits sought

Usage rate

Brand loyalty

User status: potential, first-time, regular, etc.

Readiness to buy

Occasions: holidays and events that stimulate purchases

 Behavioral segmentation has the advantage of using variables that are closely related to
the product itself. It is a fairly direct starting point for market segmentation.

Targeting Market
Target marketing tailors a marketing mix for one or more segments identified by market
segmentation. Target marketing contrasts with mass marketing, which offers a single product to
the entire market.

Two important factors to consider when selecting a target market segment are the
attractiveness of the segment and the fit between the segment and the firm's objectives,
resources, and capabilities.

Market research and analysis is instrumental in obtaining this information. For example,
buyer intentions, sales force estimates, test marketing, and statistical demand analysis are useful
for determining sales potential. The impact of applicable micro-environmental and macro-
environmental variables on the market segment should be considered.

Note that larger segments are not necessarily the most profitable to target since they
likely will have more competition. It may be more profitable to serve one or more smaller
segments that have little competition. On the other hand, if the firm can develop a competitive
advantage, for example, via patent protection, it may find it profitable to pursue a larger market
segment.

Positioning Strategy
EFU is considered trusted and premium brand because of its unique association. EFU is
positioning their policies in the best of their customer satisfaction, which also differentiate their
policies from their competitors. They are creating environment for the people to have a life easy
chance. As regarding the image there is a message Zindagi Main Kamal Karna Zarori hai

Pricing Strategy
The pricing strategy which is EFU Life is following, cannot be easily evaluate because
from company has not mentioned clearly about any system. However minimum policy
installment for per year is 8 thousand. However most of the companies including this are
following the Customer-Based Pricing. But a company cannot follow a single strategy straightly.

Setting the right price is the most important thing, and company is doing well. Price is set
by keeping in view the income and the future necessity of the client and the prices which are
being offered by the competitors.

Promotion Strategy
Advertising
EFU Life Advertise through different channels.

Televesion Commercials

Print Advertisement

Radio Commercials

Archives

Sales Promotion
EFU life Made Sale Promotion by using following ways

By launching new product like Widow Family Takaful they get sale promotion in their
business.

By launching the mobile app like Planit mobile app.

By becoming the partners with different banks.

EFU pumps heavy insvestment into awarness compaign.

By launching the corporate campaign.

Sales Functions
 Sales Functions

Sales Department

Company Sales departments serve as frontline divisions directly interacting with our
customer. A sales department is based in Karachi Head Office but maintain presence in all major
cities of Pakistan.

Functions and Responsibilities

Perhaps the first person most people think of when they think of insurance is
the insurance agent. The agent, who represents the insurance company, is the most direct link
between the company and its insureds. As such, the agent has many responsibilities.

In EFU Life agent's primary duty is to sell insurance. This is the product of the insurance
business. Companies need sales to have revenue to finance operations and pay claims. It is the
duty of sales department to generate sales. Agents need sales to earn the commissions that are
their livelihood.

An agent is often responsible for field underwriting risks. This means using pre-
established criteria to seek out the type of business that is likely to be acceptable to the company.
Although the company underwriter makes the final decision to accept a risk, the agent also has a
responsibility to seek out quality business.

Before selling a policy, agents must obtain information on the prospect's particular
exposures and review existing policies. The agent must analyze the prospect's coverage needs
and make recommendations as to the amount and type of coverage appropriate for each
exposure.

The Sales agents must make sure that the client understands the type of coverage being
purchased and what the insured's responsibilities are under the policy, as well as the services that
will be provided by the agent and the insurance company. The agent can also be expected to
deliver the policy.
 Once a policy is in force, the agent has a continuing responsibility toward the insured. At
least once a year, the agent should review the client's coverage and evaluate the adequacy of the
coverage provided. The agent must also stay current with new coverages that might be
appropriate for the client.

At any time during the policy year, the agent must be available to assist the insured
with service needs, such as a name change or a change in the method of premium payment, and
maintain accurate records of all such changes requested by the insured. The agent can also assist
the insured in filing and following up on claims. Company gives the agent authority to settle
certain types of claims.
Financial Analysis
 Financial Analysis

Balance Sheet of EFU Life

2015 2014 2013 2012

Income Statement of EFU Life

2015 2014 2013 2012

In Millions of PKR (except for per share items)

 Ratio Analysis

Profitability Analysis

Profitability analysis is a component of enterprise resource planning (ERP) that allows

administrators to forecast the profitability of a proposal or optimize the profitability of an
existing project. Profitability analysis can anticipate sales and profit potential specific to aspects
of the market such as customer age groups, geographic regions, or product types.

Net profit Margin

Net profit Margin of EFU Life in 2015 = Net Income/Net Sale

= 933.48/28122.81

= 0.0332 = 3.32%

Net profit Margin of EFU Life in 2014 = 919.87/18936.92

= 0.0485 = 4.85%

Net Profit Margin

2015 2014
3.32% 4.85%

Administrative Expense Ratio

Administrative Expense Ratio of EFU life in 2015 = Admin Expense/ Net Sale

= 4653.08/28122.81

= 0.165 = 16.54%

Administrative Expense Ratio of EFU life in 2014 = 4210.88/18936.92

= 0.222 = 22.2%

Administrative Expense Ratio

2015 2014
16.54% 22.2%
Operating Margin Ratio

Operating Margin of EFU Life in 2015 = Operating Income/Net Sale

= 1425.77/28122.81

= 0.050 = 5.0%

Operating Margin of EFU Life in 2014 = 1389.07/18936.92

= 0.073 = 7.3%

Operating Margin Ratio

2015 2014
5.0% 7.3%

Operating Expense Ratio

Operating Expense Ratio of EFU Life in 2015 = Total Operating Expense/Net Sale

= 26697.03/28122.81

= 0.949 = 94.9%

Operating Expense Ratio of EFU Life in 2014 = 17547.85/18936.92

= 0.926 = 92.6%

Operating Expense Ratio

2015 2014
94.9% 92.6%

Return on Equity

Return on Equity of EFU Life in 2015 = Net Income/ Shareholder Equity

= 34%
 Return on Equity of EFU Life in 2014 = 37%

Return on Equity
2015 2014
34% 37%

Liquidity Analysis

Liquidity ratios are used to determine a companys ability to meet its short-term debt
obligations. Investors often take a close look at liquidity ratios when performing fundamental
analysis on a firm. Since a company that is consistently having trouble meeting its short-term
debt is at a higher risk of bankruptcy, liquidity ratios are a good measure of whether a company
will be able to comfortably continue as a going concern.

Current Ratio

Current Ratio of EFU Life in 2015 = Current Assets/Current Liabilities

= 10610.29/3171.84

= 3.345

Current Ratio of EFU Life in 2014 = 8798.30/2988.23

= 2.944

Current Ratio
2015 2014
3.345 2.944

Current Assets to Total Assets

Current Assets to Total Assets in 2015 = 10610.298/67228.482

= 0.157 = 15.7%

Current Assets to Total Assets in 2014 = 8798.305/49104.25

 = 0.179 = 17.9%

Current Assets to Total Assets

2015 2014
15.7% 17.9%

Quick Asset Test Ratio

Quick Ratio of EFU Life in 2015 = Current Assets Inventories/ Current Liabilities

= (10610.298 0)/ 3171.842

= 3.45

Quick Ratio of EFU Life in 2014 = (8708.305- 0)/2988.234

=2.91

Quick Ratio
2015 2014
3.45 2.91

Long Term Debt Paying Ability Analysis

It measures the ability of a company to meet its financial obligations when they fall due.

Debt Ratio

Debt Ration of EFU Life in 2015 = Total Liabilities/Total Assets

= 64394.21/67228.48
 = 0.957 = 95.78%

Debt Ration of EFU Life in 2014 = 46570.89/49104.26

= 0.948 = 94.8%

Debt Ratio
2015 2014
95.78% 94.8%

Analysis for investor

Earnings per Share

Earnings per share of EFU in 2015 = Net Income Dividend of P.S/ Av Out. Share

= (933.48 0)/100

= 9.33

Earnings per share of EFU Life in 2014 = (919.87- 0)/100

= 9.19

Earnings per Share

2015 2014
9.33 9.19

Dividend Payout Ratio

Dividend Payout Ration of EFU Life in 2015 = 78.87%

Dividend Payout Ration of EFU Life in 2014 = 69.97%

Dividend Payout Ratio

2015 2014
78.87% 69.97%
Interpretation

Profitability Ratio

The decline in profitability ratios is mainly due to the retention of surplus in statutory
funds to meet the solvency requirements. The Company has managed to underwrite 18.2 billion
of business (new and subsequent) in 2015.

Liquidity Ratio

EFU Life's liquidity position had always been very strong. Steep increase in cash is due
to investments in short term Bank Deposits towards the year end.

Investor Analysis

Investment ratios are gradually increasing over the year due to better performance and
earning of the company. Company has announced 60% final dividend and 15% interim dividend
(which sum up to 75% total dividend for 2015).

Vertical and Horizontal Analysis of Financial Statements

Vertical Analysis of Balance Sheet and Income Statement

2015 2014 2013 2012

Horizontal Analysis of Balance Sheet and Income Statement

2015
2014 2013 2012
Critical Analysis
Critical Analysis

At present there is no such organization in the world that is free from problems and challenges.
Every concern has to strive and struggle a lot to be more profitable and to get a more competitive
edge. Improvement and advancement is crucial with every step and with the every minute
passing. Especially insurance sector internationally and in Pakistan is facing huge challenges
and simultaneously getting huge opportunities to avail. The competition is great in this regard.
Only those insurance companies will succeeded which will strive for best. But EFU Life
Limited is making as much struggle and effort to be profitable.

Its relative ranking in the world in its country of origin and in Pakistan reveals the facts
that where it is standing. It is facing a lot of problems. Some problems are due to changing
political and economic structure but many problems are due to negligence and inefficiency of
management. Some of these problems are very minor but these are the areas which make a
difference in this competitive scenario. All these problems have been pointed out later
accompanied by related suggestions. All these matters should be seriously taken care off. It will
be so then it can be hoped that in future the relative, its policies, financial position and all other
areas of EFU Life will improve and in future the picture will be quite different.

There are some minor problems also these are the things which definitely make a
difference. Today, the foreign companies and local companies in Pakistan are introducing new
ideas, they providing their employees with extended facilities in order to keep their morale high
and to full motivate them. But these are the things which are lacking in EFU Life Office. I think
that if these problems will be solved, then employees will be more motivated, more efficient and
more productive. Not only the employees but the general public will also be attracted and
profitability will definitely improve.
SWOT Analysis
SWOT Analysis

SWOT analysis is the analysis of the internal and external factors, which have impact on
the survival of any organization. Now lets make SWOT analysis for EFU Life Assurance
Company Limited.

SWOT is basically a combination of four factors that a Company must account for

Strength

Largest private sector life Insurance Company.

EFU Life Assurance has wide variety of Insurance policies.
We are company with the broad customer base.
Strong liquidity is the major reason for the up move.
Easy Access to the customer. One can contact to EFU through one of 150 branches spread
all over the Pakistan.
Quality of Technical as well as Marketing Team is considered as the best in the country.
Strongest Financial base in the private.
Well trained sales force to provide solutions that match your needs.

Weakness

People of Pakistan are not More Policy Conscious

Due to lack of awareness, people seem it risky.
Lack of awareness, so most of the customers are not aware of the EFU Life Assurance
policies benefits.
Temporary hiring and less allowance for the employee.
Loss due to Heavy Claims

Opportunities
 Customer trust is the one of the foremost priority of the EFU. That will increase the sales
and will helps in achieving the goal.
Increasing in growth by having more market share, by having more sales and by
increasing the quality and in line services will result in the increase in the overall growth
of the EFU insurance.
Development in Information and Education about the Insurance will affect directly to the
EFU insurance.
Intention of traditional products is to encourage long term, regular and disciplined
savings to systematically build up a target fund.
The average insurance premium being collected by the company has been growing
exponentially year on year.

Threats

Invasion of Foreign Insurance Companies.

The price cutting strategy of the competitors of EFU Insurance.
Natural Disasters are one of the big threats for the EFU Insurance.
Religious and Cultural Resistances as one the controversy in the Insurance company
services and the Religion is that the Islam doesnt allow the Insurance.
Continued law and order situation increases cost of operations and reduced growth in
certain geographical areas.
Conclusion
Conclusion

As it was my first experience to work in practical environment, I gained a lot. I learnt

how to sit in professional environment; it is all because of the people out there helped me a lot.
From all six weeks that I spent there I understand that the organization have very strong roots in
market. It should rightly be called as a giant of Insurance Market. Financially company is very
sound. But current political position has affected it badly.

If we look at the overall performance of the company, then it is not hard to say that the
company is in good position but there are also some flaws. The EFU is not adopting flexible
policies, especially in the areas of the recruitment, promotions, evaluation of the employees.
Most of the hiring is temporary so the future of employee remains unsecured and their
motivation level never increases.
Recommendation
Recommendations

After spending six weeks at the EFU, interacting with the employees, getting their views,
observing the organizational structure and design, I have come up with the following suggestions
that in my view, will definitely improve a few weaknesses observed in the EFU by me.

The EFU should adopt flexible policies, especially in the areas of the recruitment,
promotions, evaluation of the employees otherwise the high turnover observed in the
EFU will continue to create problems for the EFU now and in the future. Because not
being satisfied many experienced employees will leave the Organization.

The fresh hiring should be made permanent so that they are secured of their future.
Further the allowances and perquisites attached with the permanent jobs will also
increase the motivation level of the employees.

The EFU should place emphasis on the organization of effective training and
development programs for its new as well as existing employees so that these are
gradually updated regarding the recent developments in the field of Insurance. As far as I
observed the persons employed there were not known to insurance as thoroughly as they
should being an insurance person.

The current Computer system used by the EFU is very effective in processing. But my
view is that there is further room for improvement. They should try to be best in
technology to compete in market.

The higher authorities should form team-based management rather than centralized
management. It would result in improvement in uplifting the morale of the employees.
They will be more motivated and involved in all their operations resulting in overall
effectiveness of the organization.
References

www.efuinsurance.com
www.wikipedia.com
www.netmba.com
www.pakre.org.pk
www.sbp.org.pk
www.karobar.pk
www.businessrecorder.com
www.allprojectreports.com
www.scribd.com

Reference Books (For Term and Definitions)

Marketing Management by Philip Kotler

Consumer Behavior by Schiffman