EFU General Insurance Ltd.

Final Project

The south Asia in general and Pakistan in particular has become the focus of entire world
since incident of September 11. The existing geo-political environment has grave
repercussions on the insurance industry of the region. This has resulted in high insurance
rates for all kinds of insurance products. Insurance business has never been in so much of
lime light as it is today in our country.

Keeping its significance in present environment, we have decided to initiate an analytical

study on this subject from management perspective. Therefore, we will be trying to take
this project on analytical study of insurance business in Pakistan.

After contemplating through the merits and demerits of different insurance-

business related topics and after evaluating their importance in the subject of
Management, especially their implication in the Pakistani industry, we selected to the
EFU-a multinational Insurance business. And another basic reason of choosing this
particular topic was to see that what is insurances business all about and what is its
significance in a country like Pakistan?

PROSPECTIVE SIGNIFICANCE OF THIS PROJECT:

There are many national and international companies doing business in many different
fields, in countries all over the world. Insurance is the field, which is not fully utilized/
expanded to its optimum in underdeveloped and developing countries like Pakistan.
There is a big scope for this field in Pakistan and it can provide relief and source of
earning to Pakistani people.

EFU is a multinational enterprise and has become a well-established company in

Pakistan. It is in this field for over five decades in subcontinent and later Pakistan
(after1947).

This project will not only be about the EFU Insurance Company and its performance but
it will also give a complete insight of the insurance business. We will try to highlight the
some of the important aspects of insurance business.

BACKGROUND:

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 Calcutta 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 Insurance 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 prompt
claim settlement and now the EFU being the largest insurance group provides a full range
of general, life and health insurance services.

EFU TODAY:

Today EFU continues to be a leader in the insurance industry in Pakistan:

• EFU GENERAL INSURANCE LIMITED is Pakistan's pioneer general insurer

with the industry's highest premium growth in 2003 of Rs. 86 crores.
 • EFU LIFE ASSURANCE LIMITED is Pakistan's largest private sector life
insurance company with over 60% market share.

• ALLIANZ EFU HEALTH INSURANCE LIMITED is Pakistan's first specialized

health insurer protecting over 320 groups and 100,000 persons.

EFU Group is one of the few Pakistani organizations run totally by professional
management. Another unique feature of EFU is a voluntary review mechanism by
professionals of international repute. EFU has taken Mr. Wolfram W. Karnowski, who
retired at a very senior level from Munich Re, on its Board of Directors. It has appointed
Mr. Michael J de H. Bell, a very eminent UK based actuary (retired from Wyatt Watsons
and chairman of a UK based life company). EFU has the services of Mr. S.C. (Hamid)
Subjally, who retired from a very senior position from Assicurazioni Generali, Dubai,
UAE. The independent reviews by these professionals enable the group companies to
keep abreast of international changes in the industry as well as ensure that management
adopts the best international practices.

Another pillar of EFU's strength is a very close and long term (over 50 years) relationship
with its main reinsurer, ‘Munich Re’, the largest reinsurance company in the world and
the strong support of Allianz Aktiengesellschaft (Allianz AG), a global leader in the
insurance industry.

HIRARCHICAL CHART OF THE ORGANIZATION:

Rafique R. Bhimjee Chairman

Saifuddin N. Zoomkawala
Managing Director & Chief
Executive

Hasanali Abdullah, F.C.A.

Mahmood Lotia, A.C.I.I.
Deputy Managing Director &
Deputy Managing Director
Corporate Secretary
DATA PROCESSING DEPARTMENT:

Syed Ahmad A. Haq,

M.Sc. Executive Director

Abdul Hameed Qureshi,

M.Sc. Senior Vice
President

Masroor Hussain Vice Mohammad Kamil Khan Mohammad Nasir Vice

President Vice President President
ENGINEERING, BOND, MISC. & LAW DEPARTMENTS:

Afaq Ahmad, A.C.I.I.

Executive Director

Aftab Fakhruddin, B.E.

Executive Vice President
(Engg.)

Aamir Nayab Ahmed, B. Altaf Ahmed Siddiqui

Abdul Hafeez, LL.B.
Arch. Vice President Vice President
Vice President (Law)
(Engg. Claims & Bonds) (Miscellaneous)

Khurram Nasim
Assistant Vice President
MARINE DEPARTMENT:

A. Razzak Polani Executive

Director

Javid Niaz Khan, M.A.,

A.C.I.I. Assistant Executive
Director

Jawahar Ali Kassim Senior

Vice President

Mohammad Ilyas M. Sohail Nazir, M. Sc

Badar Ameen Sissodia
Assistant Vice President (Econ.), A.C.I.I. Assistant
Assistant Vice President
Vice President
FINANCE DEPARTMENT:

Hasanali Abdullah, F.C.A. Deputy

Managing Director

Altaf Qamruddin Gokal, A.C.A. Syed Mehdi Imam, M.A. Senior

Senior Executive Vice President Executive Vice President

M. Mubashirullah Khan
Executive Vice President

Aslam Abdullah Ghole, F.C.I.S.

Vice President

Qasim Ali Mohammad Vice

President

Zakaria Suleman Vice

President
FIRE DEPARTMENT:

Khurram Ali Khan, B.E. Senior Executive Vice

President

Thomas Leo Fernandez Executive Vice President (Fire

Claims)

Kamran Arshad Inam Vice President

Mohammad Arshad Khan Assistant Vice President

Shahkar Hasan Khan, A.C.I.I. Assistant Vice President

Syed Abid Raza Rizvi, M. Com. Assistance Vice

President

Syed Ahmed Hassan, M.B.A. Assistance Vice

President
 MOTOR DEPARTMENT:

A. Razzak Polani
Executive Director

Jehanzeb Karamat
Executive Vice President

Imran Ahmed, B.E.,

Mahmood Jafri Senior
M.B.A., A.C.I.I. Senior
Vice President
Vice President

Baqar Aneel Jafari

Assistant Vice President

STATISTICS & CREDIT CONTROL DEPARTMENT:

Muhammad H. Hashim
Vice President

Syed Saghirul Hasan Rana Zafar Iqbal Rao Abdul Hafeez

Assistant Vice President Assistant Vice President Khan Assistant Vice
President