Adamjeeinsurance

Department Of Management Sciences

Financial Project
Adamjee Insurance Company

Submitted By:
Ahmad Raza (06-168)
Program: BBA(H)
Semester: 8th
Session: 2006-2010

Submitted To: Rai Imtiaz Hussain

University of Education Lahore

(Okara Campus)
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DEDICATED
I dedicate this project to
Almighty Allah, The Creator of worlds
And
Hazrat Muhammad (P.B.U.P), the cause of
The creation of the Universe
And
To my parents,
To the persons who loved me, persons whom
I loved and for all those who prayed for me.
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ACKNOWLEDGEMENTS

Almighty ALLAH never spoils the effort. We consider it as our foremost duty to
acknowledge the omnipresent, kindness and love of Almighty ALLAH who made it
possible for me to complete this financial project.
Then we consider it our utmost duty to express gratitude and respect to Holy Prophet
(PBUH), who is forever a torch of guidance and knowledge for humanity as a whole.
We have no appropriate words that fully convey the sense of immense indebtedness and
deep gratitude that we owe to our worthy supervisor Sir Rai Imtiaz Hussain for his
dynamic supervision, valuable suggestions, scholastic attitude, brotherly behavior &
constructive criticism during the course of this project and thesis.
We pay our full regards and heartiest appreciation to all our teachers, who taught me at
any stage of our education career.
We regard the cooperation of management of University of Education, Okara that makes
possible for us to conduct the financial project.
We greatly extend my zealous, sincerest and warmest thanks to all our dear friends for
their cooperation, beautiful moments of friendship and with whom we have passed
memorable events of life.
May Allah the Almighty bless our mother and father & well wishers with good health &
prosperous long lives (Aamin!).

Ahmad Raza
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Executive Summary

This document provided details of my achievements in terms of

implementation and understanding of strategic analysis in insurance companies.
AICL is amongst the leading insurance companies in the country and has always
played a pioneering role in introducing innovative Technology- based insurance
services. Adamjee Insurance Company Limited (AICL) was incorporated as a
Public Limited Company on September 28, 1960 and is listed on all three stock
exchanges of Pakistan. MCB Bank, another subsidiary of Nishat Group acquired
the management rights of the company in 2004. AICL is the only insurance
company which was given the rating ‘A’ (Excellent) by A.M. Best for two
consecutive years. AICL holds a distinctive record of holding „Best Company
Award‟ from Karachi Stock Exchange among all sectors for 17 consecutive years.
It has also secured Best Export Performance Trophy from FPCCI 19 times.
Adamjee has also the singular distinction of being declared ‘The 2nd Best
Insurance Company in Asia’, by Euro-money in the year 2001.
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Company Information

BOA RD OF DIRECTORS
MOHAMED HANIF ADAMJEE Chairman
ABDUL HAMID ADAMJEE Director
ABDUL RAZAK ADAMJEE Director
IQBAL ADAMJEE Director
I.A. RAFIQUI Director
AKHTAR K. ALAVI Director
MIAN ASIF SAID Director
SAAD M. ALI Director
MOHAMMED CHOUDHURY Managing Director & Chief Executive
Secretary/General Manager A. AZIZ CHASHMWALA B.Com., LL.B.
Executive Director (Finance) SYED ZIAUDIN AHMED, M.Com.,
General Manager l. A, RAFIQUI
AKHTAR K. ALAVI, A.C.I.I. (London)
M. U. MOHAMMADI
MOIEZ M. SHAIKHALI
SULTAN A. SIDDIQI, B.A.
MOHAMMED NASEEM, A.C.I.I. (London)
JABBAR AKHTAR, M.A., LL.B., F.C.I.I. (London)
MIRZA ALI MAHMOOD., B.E. (Mech. & Elec.)
SAL1M RAFIK SIDIKI, B.A. (Hons.), M.A. (Eco.)
KHAWAJA KHALID MUSTAFA, M.A.
CAPT. MAHMOOD SULTAN, Master Mariner, F.I.C.S. (London), F.C.I.I. (London),
Chattered Ship Broker Chattered Insurer
ABDUL RAZAK RAHIMTULLAH BRAMCHARI
MOHAMMED ANWAR ABDULLA, A.C.I.I. (London), Chartered Insurer
SYED BASIT HUSSAN, B. Corn.
TAHIR AHMED, B.E. (Met.), M.B.A., A.C.I.I. (London), Chattered Insurer
JAMEEL KHAN, M.A., LL.B.
General Manager (Car Clinic) MOHAMMED SALEEM
General Managers (Development ABDUL AZIZ KHADELI, B.Com.
SHAMSUL ARFEEN QURESHI, B. Corn.
Joint General Managers AHSAN MAHMOOD ALVI, F.C.A. (England & Wales)
M. JAHANGIR CHUGHTAI, M.A.
ABDUL HAMID, B. Com., F.C.I.I. (London), Chattered Insurer
IQBAL MOHAMMAD, B.A.
SHAMSUL HAQUE, A.C.I.I. (London)
M. IQBAL VAKIL., B.Com.
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S.M.M. RIZVI, B.A.

T.A. ABBASI, B.Com.
AUSTEN B. FREITAS
MOHAMMED EUSOPH JAMAL, M.B.A.
TINKU 1. JOHNSON, B.E. (Mech.), M.B.A.
Jt. General Managers MAHMOOD A. WAHAB, B.A.
(development MAZHAR SALEEM
ZERSIS RUSTOM BIRDIE
ALTAF A. KARIM, B.A.
AUDITORS FORD, RHODES, ROBSON, MORROW
Chartered Accountants, Karachi.
HEAD OFFICE
Adamjee House
R O. Box No.4850
I. I. Chundrigar Road, Karachi
Phone :PABX 2412623 (4 Lines)
Fax : (92-21) 2412627
Telex :21594 & 29719 AIC PK
Gable : ADAMJINSUR
E-mail : info@adamjeeinsurance.com
Website: www. Adamjeeinsurance.com
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Vision.................................................................................................................................10
Core Values........................................................................................................................10
Company Profile................................................................................................................11
Corporate Social Responsibility........................................................................................13
Quality Policy....................................................................................................................14
Health & Safety Policy......................................................................................................15
Why Adamjee?...................................................................................................................15
Engineering Insurance.......................................................................................................17
Fire & Property Insurance..................................................................................................23
Health Insurance................................................................................................................25
Marine Insurance...............................................................................................................31
Motor Insurance.................................................................................................................34
Retail Insurance.................................................................................................................37
Travel Insurance.................................................................................................................38
Livestock Insurance...........................................................................................................41
Global Operation................................................................................................................43
Operation in UAE..........................................................................................................43
Creating Partnerships.....................................................................................................43
Global Associations...........................................................................................................43
Alliance With International SOS...................................................................................43
Major Re-Insurer................................................................................................................44
SWOT ANALYSIS...........................................................................................................46
PEST Analysis ..................................................................................................................49
RATIO ANALYSIS:.........................................................................................................51
a) Liquidity Ratios.........................................................................................................52
b) Leverage Ratios:........................................................................................................54
c) Profitability Ratios:....................................................................................................59
d) Activity Ratios:..........................................................................................................63
d) Ratio:........................................................................................................................66
Recommendation...........................................................................................................71
............................................................................................................................................72
BALANCE SHEET...........................................................................................................73
COMMON SIZE................................................................................................................75
Vertical Analysis................................................................................................................77
Profit And loss Account.....................................................................................................79
Common size analysis of Proft & Loss..............................................................................81
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Vision

"Our will is to Explore, Innovate and Differentiate. Our passion is to

provide leadership to the Insurance Industry."

Core Values

• Integrity
Transparency & Honesty without Compromise

• Humility
Empathy, Self Esteem and Respect in all relationships
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• Fun at Workplace
Work Life Balance

• Corporate Social Responsibility

Service to Humanity

Company Profile
Adamjee Insurance Company Limited (AICL) was incorporated as a
Public Limited Company on September 28, 1960 and is listed on all three stock
exchanges of Pakistan. The Company is also registered with the Central
Depository Company of Pakistan Limited (CDC) and is involved in the business
of general insurance.

The Company commenced operations with a Paid-up Capital of Rs. 2.5

million, which hasgrown phenomenally in the past 5 decades. As of 2008 the
Paid-up Capital of the Companyis Rs. 1.022 billion, which is the highest amongst
all the General Insurance companies in Pakistan. AICL enjoys a competitive
edge in the insurance industry due to its strong assetbase, paid-up capital,
substantial reserves, balanced portfolio mix and steady growth in grosspremium.

Building Threshold Towards Innovation

AICL comprises of insurance originators with superior management

teams, sustainable competitive advantage and is fully equipped with identifiable

value enhancement opportunities.The Company has originated volumes across

the spectrum of businesses, entered joint partnerships with key players in the

financial sector and expanded its business across Pakistan and Dubai.
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Diversified Portfolio of Business.

AICL broadly is involved in underwriting the following classes of businesses:

• Fire and Property

• Engineering

• Health

• Marine

• Motor

• Miscellaneous business

The diversity of AICL's portfolio allows the Company to be the insurer of

choice, for an array of clients and needs. Whilst expanding our customer base,

AICL dedicates as much effort in maintaining the highest level of customer

satisfaction. Its cornerstone philosophy is to provide premium quality service

along with forwarding the maximum benefit to its clients. This commitment is

exhibited in the importance AICL places on excellence, integrity and ethical

behavior. These values foster confidence, especially in our clients for whom

security is imperative. The high level of confidence AICL inspires is evident in the

number of banking and financial sector clients that AICL insures.

In addition AICL insures sensitive Petrochemical and complex Industrial

Risk projects of great value. AICL specializes in insuring Engineering and

Telecom concerns, whereby it has secured the greatest share of clients in those

sectors. On the other end of the spectrum, AICL services the primary industries
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of Pakistan by covering several Cement Factories, as well as numerous Textile

and Sugar Mills. Assuming the role of a leader in Pakistan's Insurance Industry,

AICL pioneered the coverage of Energy Risks. AICL has also secured the

business of Foreign Concerns entering Pakistan to execute and assemble

construction or infrastructure development projects. AICL is the principal insurer

of Kidnap & Ransom, Professional Indemnity, Product Liability and other

specialized lines in Pakistan.

Corporate Social Responsibility

AICL's corporate responsibility focuses on compliance, ethics and

corporate citizenship and maintaining overall sustainability. AICL has worked to

cultivate these aspects of its operations through enhancing communication,

training and other initiatives.

Compliance and Ethics

In order to uphold the highest standards of integrity and transparency,

regulations are becoming increasingly complex the world over. Keeping in step

with this International inclination, AICL has taken rigorous and extensive steps to

develop its capabilities and structures to meet the set standards. Having

efficiently achieved a level of compliance more stringently than others, AICL has

a competitive edge in the local market.

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AICL has restated the Compliance Performance Standards which applies

to all areas of business and processes. AICL has taken steps in furthering the

knowledge and understanding of compliance and ethical obligations through all

the levels of its management and personnel. These initiatives include internal

awareness campaigns, specific trainings in detailed regulatory areas and focused

efforts on areas such as conflict of interests.

Environment, Health and Safety

AICL continues to focus on providing safe work environment to the

employees and are pleased to report zero injury for the year under review. The

company is committed to support measures within its sphere of control, leading

to reduction in environmental issues which impacts the community.

Being an office based concern, AICL does not have a direct bearing

on the environment. Nevertheless, the company is acutely aware of the

environmental issues on hand and is committed to reduce those impacts which

are within its ability to control.

Quality Policy

The management and employees of Adamjee Insurance demonstrate

prime commitment in satisfying customer needs for managing the risk

assessment in General Insurance.

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We use QMS- 9001/2000 as a tool to continually review and improve the

effectiveness of our implemented systems. We regularly assess our processes

and practices, to build on our relationship with all our stakeholders including

customers, shareholders, strategic partners and employees.

Health & Safety Policy

At AICL Health, Safety and Environmental “HSE” responsibilities are

integral to the way the company operates. In carrying out all its activities,

Management and all employees believe that good HSE performance contributes

to business success.

To realize this vision, we will work together to protect the quality of the

environment and the health and safety of our employees, customers, and

neighbors. The company aims to protect peoples’ health, and minimize any

environmental impact that can occur during the performance of their job

functions.

The HSE policy follows all existing laws, regulations and amendments.

Why Adamjee?

Adamjee Insurance Company Limited, the largest General Insurance

Company of Pakistan, was founded in 1960 by Mr. A. W. Adamjee. Adamjee

received its certificate of commencement on 30th November 1960.

MCB Bank, another subsidiary of Nishat Group acquired the management

rights of the company in 2004. The Board of Directors of the company includes
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highly qualified professionals who are extremely competent in their respective

fields. The strategic decision making is now under the vigilance of a young and

dynamic team of professionals.

Our core aim is to provide highly differentiated & innovative set of services

to our customers, duly mounting up profits for our stakeholders. The current

annual results of 2008 are evidence of our dedication & harmony towards work.

We are offering Corporate & Retail Insurance Solutions which are

comprehensive, economical and customized for our valued clients. On the retail

side of the business Adamjee has launched its travel product, Faaslay Asaan as

well as launched Crop Loan Insurance & Livestock Insurance. Adamjee Life was

launched in 2009 in collaboration with Hollard International.

The company continually endeavors to provide its clientele with

sophisticated analysis; quality advice, innovative solutions, and the capacity to

transfer risks to internationally renowned ‘A’ rated Re-insurers. The above

services are optimally being provided by technically equipped professionals

through team work, integrity, sharing of knowledge, and above all putting the

client’s interests first. Our competitive advantage will continue to be built around

quality Professionalism and expertise and not necessarily size. Japan Credit

Rating Agency Ltd.- (JCR) and Vital Information Services Pakistan (VIS) had

assigned AIC “AA” for the year 2008 .AIC is the only insurance company which

was given the rating ‘A’ (Excellent) by A.M. Best for two consecutive years.

The Management Association of Pakistan (MAP) has awarded Adamjee the

Corporate Excellence Award twice in the years 1997 and 1998. This award is in

the financial sector and includes banks, insurance, leasing, modaraba companies
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and other financial institutions.

AIC holds a distinctive record of holding ‘Best Company Award’ from

Karachi Stock Exchange among all sectors for 17 consecutive years. It has also

secured Best Export Performance Trophy from FPCCI 19 times. Adamjee is the

first general insurance company in Pakistan to achieve ISO 9002 certification

from the world’s oldest and most reputed certifying company – Lloyd’s Register

of quality assurance. Adamjee has also the singular distinction of being declared

‘The 2nd Best Insurance Company in Asia’, by Euro-money in the year 2001.

The company insures all industrial and commercial risks including

telecommunication sector, foreign and local banks, and textile mills. Majority of

foreign concerns insure their construction, erection and infrastructure

development work with this company because Adamjee’s security has passed

the stringent standards of IFC, World Bank and other leading agencies in the

world.

Engineering Insurance

Why you need Engineering Insurance?

The world of engineering involves a lot of controllable factors which make

it fraught with all sorts of risks. Accidents whether minor or major can cause

major set backs and can cause costly delays that endanger the schedule and

integrity of a project. Engineering Insurance provides your construction site the

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protection you need to make sure this does not happen.

Why Adamjee Engineering Insurance

• Professional risk management services

• A Dedicated senior official at the time of claim

• Reinsurance support from world?s most prestigious and financially stable

re-insurers

Benefits and Coverage

CONSTRUCTION PHASE INSURANCE

This policy covers the following during this phase:

a. Contractor's All Risk (CAR)

Covering civil works like construction of roads, bridges, dams, high rises,

housing projects etc. We would cover you against:

• Fire/Lightening

• Flood/Earthquake

• Theft/Burglary

• Sudden Collapse

• On-site transport

• Fault in erection

• Third party property damage/bodily injury

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Under this policy we offer adequate protection against loss or damage in

respect of contract works, construction plant and equipment and/or construction

machinery. It covers civil works like construction of road, bridges, dams, high

rises, housing projects and etc. It also covers third party claims in respect of

property damage or bodily injury arising in connection with the execution of

various construction projects. During CAR we would cover you against

b. Comprehensive Project Insurance (CPI)

In order to cover both erection and construction risks and to provide

comprehensive protection, AICL is now equipped with comprehensive project

insurance (CPI).We cover you against.

• Classic Cover under CPI (Sections of Policy)

• Project works (EAR / CAR)

• Plant, machinery and equipment (CPE)

• Third party liability (TPL)

• Delay in start-up (DSU EAR / CAR)

• Marine Cargo

• Delay in start-up (DSU Marine)

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c. Contactor's plant & Machinery /Equipment(CPM/CPE)

The basic concept of this policy is to offer comprehensive and ad-equate

protection against loss or damage in respect of the, construction plant,

equipment and machinery, respect of property damage arising in connection with

the execution of a construction project. The policy may be concluded by the

principal or by the contractors engaged in a project, including all sub-contractors.

CPM insurance provides specific cover for the works related to the project for

which the CPM insurance is issued in general, but in some exceptional cases, a

contractor can obtain CPM insurance for multiple projects too.- every hazard is

covered which is not specifically excluded.

Dumpers, Excavators, Loaders/Top loaders, Tractors ,Graders ,Cranes

,Lifters

,Tools specifically used for construction purpose, Concrete Mixer, Road

Roller,Batching Plant are insurable under this policy.

The CPM policy covers sudden and unforeseen damage to the above

machinery due to accidents, external fire, falling of equipment, Collision, Impact

or any other external physical damages as per policy conditions. The cover for

CPM is restricted to Contractor?s Worksite only. Transit cover is not built-in in

CPM insurance but can be extended in some very special cases, where the

contractor is engaged in construction activity at multiple project sites insured

under CAR.
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d. Erection All Risk (EAR)

You can be manufacturer, owner, contractor or a lending institution

seeking cover for machinery, plants, steel structures and surrounding property

against damage and third party property damage/bodily injury claims.

e. Advance Loss of Profit following CAR/EAR

We provide cover for the actual loss of gross profit sustained due to delay

in project completion due to an accident identifiable under CAR/EAR.

2. OPERATIONAL INSURANCE

a. Machine Breakdown (MB) Insurance

The policy covers plant and machinery at work or at rest during

maintenance operation.

b. Deterioration of Stock (DOS) Insurance

This is a complementary cover to Machinery insurance covering loss to

goods in cold storage due to a breakdown of refrigeration machinery provided

such machinery is covered under MI

c. Electronic Equipment Insurance (EEI)

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Covers all electric equipments with moderate power requirements against

material damage. Additional covers;

• Fire/Lightening

• Faulty Design

• Water/Humidity

• Burglary

• Electric Damages

• Malicious act of employees or TP

3. BONDS/GUARANTEES

a. Tender / Bid Bond

Issued on behalf of the contractor in lieu of earnest money when

participating in a bidding process.

b. Performance Bond

Issued in favor of principal as a guarantee of the fulfillment and

performance of contract work by the contractor.

c. Mobilization Advance Bond

Secures the Principal against the amount advanced by him to the

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Contractor for the mobilization of Contract work.

d. Retention Money Bond

This bond is issued in favor of the Principal on behalf of the Contractor to

get the retention money released by the Principal.

Fire & Property Insurance

We need safety and security for our home, office, work, wealth and

everyday casualties. Natural calamities, fire and burglaries, moral hazard,

physical disabilities, Impact damages and many more are risks associated to our

every day life. Adamjee Miscellaneous Insurance provides a vast coverage

against all these risks to make your life and business secure.

Coverage:

• Riot and Strike Damage.

• Malicious Damage. Aircraft Damage.

• Explosion.

• Impact Damage.

• Atmospheric Disturbance (not applicable for Goods in open area).

• Earthquake (fire and shock).

Exclusions:
This insurance policy does not cover the following conditions:
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• Loss or damage caused by short circuit until or unless electrical clause is

attached in the policy.

• Loss or damage caused by the explosion of the boiler.

• Loss or damage to property due to its own heating.

• Loss or damage in consequence of the burning of property by order of any

public authority.

• Loss by theft during or after the occurrence of fire.

• Loss or damage caused by ionizing radiations or by radioactivity from any

nuclear fuel.

• Loss or damage due to the pollution or contamination except stated in the

policy.

• Loss or damage through the burning of forests, bush or jungle and

clearing of lands by fire.

• Loss or damage due to the nuclear weapons material.

• This insurance Policy does not cover any loss, which is covered in any

other policy.

Comments:

This is the most important and basic form of insurance and is essential for

all types of business concerns. Fire and Allied Perils Insurance provides

comprehensive cover in respect of loss of or damage to your property against fire

and there allied perils.

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Health Insurance

Good organizations are built through satisfied employees. Lucrative health

benefits have always been a great means for attraction and retention of valuable

resources. Adamjee Group Health Insurance is one of the finest health coverage

that can be provided to organization for the betterment of its employees. Through

magnetically encoded Catch Card, the utilization of these benefits has become

efficient and hassle free.

As established leaders in Pakistan? health insurance industry, we have

the winning combination you need for long lasting success. Our accomplishment

is only a measure of yours and we dream of making you come out the winner.

We believe in maintaining our position through strong systems and processes

while regularly adapting to technological advances. Our financial strength along

with our customer centric approach enables us to achieve our prime objective of

fulfilling our customers? needs efficiently. We promise to deliver more, stay

ahead and take you right along with us!

Why Adamjee Health Insurance

Adamjee has an ever expanding customer base of reputable companies,

including top national and multinational groups. We are backed by extensive

experience of tailoring health insurance products to suit your particular needs

and our objective is to keep providing customized services that make our health

plans the fitted ones for your corporation.

• Magnetic Health Cards

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• 27/7 Call center (0800-00242)

• No pre-authorization requirement

• Pre/Post hospitalization coverage for 30 days

• Complimentary Enhancement of limits in Accidental Emergencies

• Relationship Management Concept

• Ensuring a balanced underwritten portfolio

• Strongest relationships with all service providers

CORE BENEFITS COVERED DURING HOSPITALIZATION

o Physician / Surgeon Visits

o ICU / CCU o Surgery Charges

o Prescribed Drugs

o Operation Theatre Charges

o Anesthetist’s Fee

o Pathological and Radiological Investigations

o ECG?S, EEGs

o Prescribed ETT, Echo, Thallium Scan

o Angiography / Angioplasty

o M.R.I, CT Scan

o Ultrasound or any other diagnostic tests

o Daycare Surgeries

o Ventilator and Incubator

o Diagnostic or therapeutic endoscopic procedures

o Pre & Post Hospitalization

o (30 days prior & post Consultation, Investigation & Medication).

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o Blood Transfusion

o Physiotherapy

o Radiotherapy and Chemotherapy

o Kidney Dialysis and Transplant

o Trauma & Accidents

o Breast and Colorectal Cancer Screening

INTRODUCING ADAMJEE CATCH MAGNETIC CARD

Our emphasis on technological innovations has enabled us to provide

integrated solutions to our customers over the years. To provide you and your

employees with more convenience we now introduce the Catch Card, the first

magnetic card to be offered by any insurance company in Pakistan. The

magnetic technology gives your employees peace of mind as they get easily

verified and can avail medical services at any of our panel hospitals instantly,

without making any payments. The Magnetic strip at the back of the card holds

insurance information related to coverage details of insured/dependants.

How does it work?

As soon as a Catch Card is swiped on to a POS machine, the holders

information including individual limits held by him are displayed. The expected

amount of registration/treatment/ hospitalization is entered on the POS machine

and the system automatically verifies the policy holder, his available limit and

prints a genuine approval from Adamjee for the hospital to start treatment.
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Why is it Reliable?
Catch Card has a magnetic strip which cannot be tampered. The front of

the card contains the insured?s name and CNIC number. The Approvals for

limits are granted by Adamjee on a printed slip bearing Adamjee logo, insured?s

name, hospital name and the amount.

PANEL HOSPITALS AND MEDICAL PERSONNEL

We have the largest panel of network providers with more than 130

hospitals all over Pakistan, which make us more accessible, especially during

emergencies. All our panel hospitals have been assessed by our quality

assessment team, ensuring that they provide health care services which are up

to your desired standards. Not only we choose hospitals that offer exceptional

safety standards and outstanding expertise, we also consider their efforts

towards continuous improvements in technology and training of staff.

Exclusions:

• Birth / congenital defects or illness of any nature whatsoever unless

specifically agreed under a separate endorsement attached with this

policy.

• Costs resulting from self?inflicted injury, attempted suicide, abuse of

alcohol, drug addiction or abuse and treatment of sexually transmitted

diseases.

• Psychotic, mental or nervous disorders (including any neuroses and their

physiological or psychosomatic manifestations) or sexual reassignment

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(whether or not for psychological reasons) or psychological disturbance,

anxiety or mental stress.

• Pre-existing conditions prior to the effective date of an insured person?s

inclusion in this policy cover unless the condition has been declared to

and accepted by the company in writing.

• Treatment or investigation of fertility, infertility, sterilization or

contraception and any complication relating thereto or hormone treatment

and investigations.

• Participation in or training for any dangerous or hazardous sport, pastime

or competition or any professional sport.

• Injuries as a result of an illegal act by the insured person.

• Injury or treatment resulting from war, riots, invasion, act of foreign

enemies, hostilities or warlike operations (whether war be declared or not),

civil war, mutiny, civil commotion assuming the proportions of or

amounting to a popular uprising, military uprising, insurrection, rebellion,

military or usurped power or any act of any person acting on or on behalf

of or in connection with any organization actively directed towards the

overthrow or to the influencing of any government or ruling body by force,

terrorism or violence.

• Ionizing radiation or contamination by radioactivity from any nuclear fuel or

nuclear waste, from the process of nuclear fission or from any nuclear

weapons material.

• Services or treatment in any spa, hydro clinic, sanatorium, nursing home

or long term-care facility that is not a hospital.

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• Acquired immune deficiency syndrome (AIDS), AIDS related complex

syndrome (ARCS) and all diseases caused by and or related to HIV virus

or any other sexually transmitted disease.

• Experimental or unproven treatment.

• Dental examinations, X-rays, extraction, filling, general dental care /

treatment and orthodontic treatment or oral surgery except as a result of

emergency accidental dental treatment.

• Cost of correction of refractive errors of the eye and procedures such as

Radial Keratotomy and Excimer Laser.

• Routine medical examinations or check-ups including charges arising out

of any hospital confinement or admission primarily for diagnostic

purposes, unless specifically authorized by the Company, routine eye or

ear examinations, vaccinations, medical certificates, examination for

employment or travel, spectacles, contact lenses, hearing aids and any

treatment that is not considered medically necessary.

• Cosmetic or plastic surgery, unless it is re-constructive surgery

necessitated by an injury that occurred during the period whilst the insured

person was covered under this policy and subject to the limits and sub-

limits stated in the benefits table.

• Any increase in the expenses incurred for treatment on account of the

insured person being admitted to a more expensive room than allowed by

his daily room and board limit.

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• Pregnancy and complications thereof, childbirth (including surgical

delivery), miscarriage, abortion and/or any related prenatal or postnatal

care unless covered under a separate optional rider under this policy.

• Any outpatient treatment, except that arises out of an accident, unless

covered under a separate optional rider under this policy.

• Any charges in respect of the donor for organ transplant claims.

• Cost of limbs or supporting equipment for revival or correction of the

function(s) of body.

• Riding or driving in any racing competition operational duties as a person

of armed forces, mountaineering or rock climbing, engaging in aviation

except for traveling by-air as a passenger on any fully licensed passenger

carrying aircraft.

• Personal comfort items such as, charges for telephone, meals for other

than the patient or other items not medically necessary.

• Treatment received in a location other than the insured person?s

geographical area of coverage.

• Natural catastrophes including, but not limited to, flood, earthquake,

avalanche and cyclone.

Marine Insurance

Despite thorough and meticulous planning no one can foresee the challenges

and difficulties faced during transit; whether they are in form of natural calamities,

accidents, intentional harm or anything else. This is where Marine Insurance

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comes in; to ensure that the vessel carrying your valuable cargo finds safe

passage without you worrying about any of the perils.

Why Adamjee Engineering Insurance

• Strong treaty based overseas vessel hull insurance

• Coverage of International marine cargo trait other then Pakistan as well

• Coverage Demolition voyage in Pakistan

Adamjee Insurance offers coverage for the following:

MARINE HULL
This policy covers losses / damages to the shell and machinery of the

vessel caused by maritime perils.

MARINE CARGO
Marine Cargo caters to losses /damages pertaining to cargo / freight

carried on the vessels. We provide all risks coverage as well as policies covering

limited risks depending upon the needs of our customers.

MARINE UMBRELLA
Marine Umbrella Liability is a broad spectrum cover offering protection
Adamjeeinsurance

against liabilities to shipping / logistics and transport related companies.

BENEFITS AND COVERAGE

MARINE HULL COVERAGE

This insurance policy covers the following perils, loss and damages:

• Perils of the seas, rivers, lakes or other navigable waters.

• Fire and explosion

• Violent theft by outside persons: Jettison or Piracy.

• Contact with land conveyance, dock or harbor equipment or installation.

• Earthquake, Volcanic eruption or lightning.

• Accidents in loading, discharging or shifting cargo or fuel.

• Bursting of boilers, breakage of shafts or any latent defect in the

machinery or hull.

• Negligence of Master Officers, Crew or Pilots.

• Negligence of repairers or charterers.

• Barratry of Master Officers or Crew Contact with aircrafts, helicopters or

similar objects, or objects falling there from.

• Salvage charges when general average is declared.

MARINE CARGO COVERAGE

Our marine cargo insurance covers different risks depending upon the type of
Adamjeeinsurance

coverage sought by our customers.

The policy provides:

• Protection against ?All Risk? for loss and damage to cargo resulting from

a fortuity during transit by sea, air, road and rail

• Restrict coverage depending upon customer need other then all risk for

transit by sea, air, road and rail

MARINE UMBRELLA
This insurance could be of substantial benefit to:

• Ship or vessel Operators

• Freight Forwarders, Road Transport Operators, NVOC, Railway

Operators, Carriers by Air, Ware house Depot operators

• Ship agents, Brokers and the services associated with shipping

transportation

• Terminal Operators, Stevedores Operators, Operators of

Container/Trailer, Storage and Repairers

• Port Harbors or Port Authorities

Motor Insurance

Vehicles today have become a necessity, whether it be for carrying goods

or for personal use; they have in essence have become assets to us. However

with traffic on the roads increasing day by day and the ever increasing crime rate
Adamjeeinsurance

Motor Insurance has become a necessity; whether it is to protect against

accidents, acts of vandalism, theft or any other hazard. Adamjee Motor Insurance

covers the expenses made by losses or damages to cars, trucks or any other

vehicle caused by vehicular accidents, vandalism and theft or otherwise.

Why Adamjee Motor Insurance

Adamjee Insurance has earned a name of trust & satisfaction for almost

50 years. Our clients have entrusted us with their assets because we assure best

possible solutions for their comfort. AIC Auto products & service features include:

• Call Center for 24 hours a day, 7 days a week.

• Fair and fast claim settlement.

• Protection for 12 months

• Easy claim processing.

• Other value added services including:

o Catch card.

o Installation of Vehicle Tracking Device at Company?s cost.

Benefits and Coverage

Adamjee Insurance Motor insurance provides following coverage against

loss of or damage to your car; by

• Accidental external means

• Fire, explosion

• Malicious act

• Riot, strike and Terrorism (Optional)

Adamjeeinsurance

• Flood, hurricane, hail, cyclone

• Earthquake

How to lodge a claim:

• The Call center/Branch/Website registers the claim request after

furnishing all personal details and details of the policy taken.

• A company appointed surveyor inspects the site and submits the loss

report.

• After completion of required documents claim is processed by the

company immediately.

• On approval of the claim, a letter is sent to the insured giving the approved

amount of settlement.

• Payment cheque is released.

DOCUMENTS REQUIRED AT THE TIME OF CLAIM:

For Own Damage

o Claims Claim form duly signed

o Driving license copy

o Copy of CNIC
Adamjeeinsurance

o Policy copy

o Police Report

o FIR

o Copy of Registration Book.

o Original repair invoice, payment receipt for

For Total Loss Claims

o Original Policy Certificate

o Original Registration Book

o Original Excise File

o Original/Duplicate car keys

o Open transfer letter

o Same as own damage documents from (1to 6)

For Theft Claims

o Original FIR

o Letter of Subrogation

o Same as Total Loss documents.

Retail Insurance
1. Travel Insurance
Adamjeeinsurance

2. Livestock Insurance

Travel Insurance

Inconvenience can occur when you least anticipate them forcing you to

cancel or interrupt your trip and incur unplanned expenses. Don't just buy

assurance; buy peace of mind, whether you are on vacations, leisure or Business

trip. We sell not only insurance but our commitment to facilitate and deliver you

the best, wherever you are.

Adamjee Insurance offers FAASLAY ASAAN, travel insurance policy that

is your gateway to Instant Overseas Claim Settlement. In collaboration with

International SOS, we provide world-class customer care and support - round the

clock.

Our international Healthcare and security professionals are just a 'free call'

away to assit you in over 70 different languages. Extending beyond the

boundaries of medical assistance, our customer care services excel in providing

concierge, travel, cash emergency and wide range of hotline services to our

valued customers.

Sign off your worries and let us help you enjoy a comfortable & peaceful

journey. Sign up with FAASLAY ASAAN.

SPECIAL BENEFITS:

• Visa and inoculation Services

• Worldwide Consulate and Embassy Referral

Adamjeeinsurance

• Hotel accommodation arranged in case of trip curtailment

• Arrangement of transport in case of a medical emergency

• Delivery of medicines not available at destination

• Luggage and Passport Recovery Assistance Emergency cash

advancement

• Easy claim processing

• 24 hours a day, 7 days a week International Claims Hotline

ELIGIBILITY:

• Individuals aged 6 months to 65 years are eligible

Individuals aged 65-85 will be insured at extra premium

Benefits Sum Insured Per Person

Elite Bliss Delight Care

Accidental Death & PTD
Common Carrier 20,000 20,000 N/A N/A
All Other Accidents 30,000 20,000 5,000 10,000
Adamjeeinsurance

Medical Benefits
Accident & Sickness Medical
Expenses
100,000 50,000 50,000 10,000
Including OPD (Deductible
USD.100 eel*)
Repatriation of Mortal Remains Included Included Included Included
Emergency Dental Care
(Deductible USD.100 500 300 - -
eel*)
Emergency Return Home of Actual Actual Actual
-
Insured Expense Expense Expense
On Travel Services
Free Free Free Free
- Legal & Communication
Adamjee Advantage
Total Loss of Checked-In
1,000 500 100 100
Baggage
Loss of Passport (Deductible
300 200 - 100
USD.25 eel*)
Loss of Credit Card 500 300 - -
Delays
Baggage Delay (Excess First 8
100 50 - 50
Hours)

Flight Delay (Excess First 12

300 200 - 100
Hours)

Cancellations
Trip Cancellation & Curtailment 400 300 100 200
Emergencies
Travel & Stay Over of One
Included - - -
Immediate Family Member
Return of Dependent Children Included Included Included Included
Dispatch of Medication Included Included Included Included
Personal Liability
Deductible USD.1,000 for 100,000 50,000 - 15,000
TPPD**)
Adamjeeinsurance

POLICY COVERAGE:

* Each & Every Loss

** Third Party Property Damage

Note:

• Accidental Death Cover for Dependent child under 18 years of age is

limited to USD. 5,000 in Elite and Bliss.

Accidental Death Cover for Dependent child under 18 years of age is limited to
USD. 1,250 in Delight.

Terms and Conditions

The coverage is subject to the Terms, Conditions and Exclusions of the

specific cover as well as to the general conditions and general exclusions of the

policy wording provided here with.

Livestock Insurance
Adamjee Insurance has remained the symbol of reliability for decades.

Pakistan has an agrarian economy and its agricultural sector contributes about

22% to its GDP with livestock component being more than 50%. To meet the

growing needs of our farmers and to serve the social responsibility owed to us,

Adamjee Insurance Company is proud to introduce Livestock Insurance. It will be

another value-added proposition to our product line, directed to satisfy the needs

of our prestigious clientele.

Coverage & Benefits:

Adamjeeinsurance

The core emphasis of Adamjee Livestock Insurance is to provide peace of

mind to our customers & secure their necessities related to livestock. The policy

highlights include;

• Death coverage of cattle due to natural causes, disease, injury, or

accident.

• Specialized doctors are assigned the task of providing the farmers with

up-to date farming procedures and practices.

• Policies can be customized depending upon your specific needs.

Exclusions:

• Death of animal due to gun firing, parasitic action, poisoning, riot, war, or

through ionizing radiations is not covered.

• Casualty with respect to government orders, or epizootic illness.

• Death due to change of location, unless carried out with prior notice.

• Partial or total disability of animal.

• Theft or mysterious disappearance of animal.

Conditions:

• Veterinary certificate is required at the time of issuance of policy.

• Reasonable measures of safety & well being of livestock shall be taken

care of by the insured.

* Coverage is subject to the detailed terms, conditions and exclusions of the

policy wording, & upon final approval of Livestock Insurance Division.

Adamjeeinsurance

Global Operation

Operation in UAE
The Board of Directors in the current Annual General Meeting agreed on

the proposition, to resume the overseas business from United Arab Emirates to

attain a fair market share on foreign grounds. The decision to resume foreign

business is challenging but management aims to attain high profitability margins

in the coming years. The company is highly focused on attracting customers in all

classes of business to enhance profitability and its expanded scope would enable

the company to augment its services in the General Insurance businesses.

Creating Partnerships
Two training sessions on "Creating partnerships" were held on Monday,

November 19, 2007 at the Dubai Office for team members in the city of cultural

cross roads, Dubai!

Global Associations

Alliance With International SOS

International SOS is the world?s leading provider of medical assistance,

international healthcare, security assistance and outsourced customer care.

Their unique expertise enables organizations to manage their health and safety

risks facing international travelers, expatriates, and the global workforce. They

respond instantly to calls for help and advice, from travelers and expatriates,
Adamjeeinsurance

managing tasks ranging from a host of core medical, travel and legal services, for

example, assisting with a doctor?s referral for medical evacuation. International

SOS is our global partner of providing the medical benefits and services for our

travel product ?FAASLAY ASAAN.? It has a worldwide presence with over 51

offices and 27 alarm centers spread across the globe including Europe.

International SOS outsourced customer care services extend beyond the

boundaries of medical assistance, using the sophistication of their Alarm Center

network for concierge, home, automobile, wellness services and a range of

hotline assistance services.

With service excellence, technology, a global network and proven

operational procedures, International SOS?s dedicated staff renders professional

solutions at the global, regional and local level. Services are just a phone call

away and right where you need them!

Major Re-Insurer

• Munich Re Group

• Swiss Re Group

• Arig Re

• Scor

• Syndicates at Lloyds

• HanNover RE
Adamjeeinsurance
Adamjeeinsurance

SWOT ANALYSIS

Strengths:

 Strong strategic alliance with MCB bank limited.

 Strong asset base than other insurance companies.

 Ideal portfolio mix for growth in motor business.

Adamjeeinsurance

 More experienced qualified and technical staff.

 Unique web portal offering E-insurance for the first time in history of Pakistan.

Weaknesses:

 Severe shortage of development (marketing) staff.

 Late settlement of banks, leasing companies and motor claims.

 Low commission rates as compared to other companies which in turn makes it

difficult to get business from other banks.

 Apart from MCB, poor liaison with other banks.

Opportunities:

 Diversification of product portfolio mix.

 Moving into new market segments.

 To make the claims settlement procedure easy due to improving technology.

Adamjeeinsurance

 Client‟s increasing need for an insurance consultant.

 Improving liaison with other banks and groups.

Threats:

 Very poor condition of textile industry due to increased cost and short fall of
cotton. Growth in textile industry is zero and many mills are being closed down.
Keeping in view that 62% of AICL premium is generated from textile industry, this
is a great threat to the overall growth of AICL.

 Increase in Takaful insurance due to pressure from Islamic banks and

personal conviction of the customers.

 Poaching of development and technical staff by the competitors who are hell
bent upon to pick trained staff of AICL by offering them better facilities.

 Shortage of marketing staff is likely to make AICL critically vulnerable.

Adamjeeinsurance

PEST Analysis

Political Environment

Violence situation
Militancy operation in FATA, NWFP and Swat its impact on other parts of the
country
Unstable political situation
Adamjeeinsurance

Talbanization affected our repute in the world

Economic Indicators

Home economy situations and trends

Overseas economy‟s and trends
poor conditions of textile industry and cotton shortfall
Increasing inflation rate
Specific industry factors
debt of the government increased

Socio cultural environment

Pressure from Islamic banks and personal convictions of people

Lake of awareness about insurance among people due to very low literacy rate
Ethical issues

Technological Factors

Increasing trend of E-insurance

Competing technology development
provide response times
Adamjeeinsurance

RATIO ANALYSIS:
Financial ratios are useful indicators of a firm's performance and financial
situation. Financial ratios can be used to analyze trends and to compare the
firm's financials to those of other firms. Ratio analysis is the calculation and
comparison of ratios which are derived from the information in a company's
financial statements. Financial ratios are usually expressed as a percent or as
times per period. Ratio analysis is a widely used tool of financial analysis. It is
defined as the systematic use of ratio to interpret the financial statements so that
the strength and weaknesses of a firm as well as its historical performance and
current financial condition can be determined. The term ratio refers to the
Adamjeeinsurance

numerical or quantitative relationship between two variables. With the help of

ratio analysis conclusion can be drawn regarding several aspects such as
financial health, profitability and operational efficiency of the undertaking. Ratio
points out the operating efficiency of the firm i.e. whether the management has
utilized the firm’s assets correctly, to increase the investor’s wealth. It ensures a
fair return to its owners and secures optimum utilization of firm’s assets. Ratio
analysis helps in inter-firm comparison by providing necessary data. An inter firm
comparison indicates relative position. It provides the relevant data for the
comparison of the performance of different departments. If comparison shows a
variance, the possible reasons of variations may be identified and if results are
negative, the action may be initiated immediately to bring them in line. Yet
another dimension of usefulness or ratio analysis, relevant from the View point of
management is that it throws light on the degree efficiency in the various activity
ratios measures this kind of operational efficiency.

a) Liquidity Ratios
b) Leverage Ratios
c) Profitability Ratios
d) Activity Ratios
e) Market Ratios

a) Liquidity Ratios
Liquidity ratios measure a firm’s ability to meet its current obligations.
These include:

Current Ratio:
Current Ratio = Current Assets / Current Liabilities

This ratio indicates the extent to which current liabilities are covered by
those assets expected to be converted to cash in the near future. Current assets
normally include cash, marketable securities, accounts receivables, and
inventories. Current liabilities consist of accounts payable, short-term notes
Adamjeeinsurance

payable, current maturities of long-term debt, accrued taxes, and other accrued
expenses. Current assets are important to businesses because they are the
assets that are used to fund day-to-day operations and pay ongoing expenses.

Year 2005 2006 2007 2008 2009

Current Assets 8,778,651 17,970,238 10,753,713 18,259,747 20,735,742
Current Liabilities 6,653,357 7,324,857 11,081,026 10,417,160 10,621,051
Current ratio 1.32 2.45 0.97 1.75 1.95

Current Ratio

3.00
45
2.

2.50

95
75

1.
2.00
1.
32
Ratio

1.

1.50
97
0.

1.00
0.50
0.00
2005 2006 2007 2008 2009

Years

Interpretation:
Current Ratio of the company was quite good in 2004 and 2007 but then
current liabilities of the company increased in 2005, 2006 and 2007. Over all
although the current ratio is decreasing yet it is showing the good ability of firm to
pay its current liabilities from current assets.

Sales to Working Capital:

Sales to Working Capital = Sales / Working Capital

Sales to working capital give an indication of the turnover in working capital per
year. A low working capital indicates an unprofitable use of working capital.

Year 2005 2006 2007 2008 2009

Adamjeeinsurance

Sales 3,997,327 5,280,128 5,531,818 7,488,144 6,830,998

Working Capital 2,125,294 10,645,381 (327,313) 7,842,587 10,114,691
Sales to Working 1.88 0.50 (16.90) 0.95 0.68
Capital ratio

Sales to Working Capital:

88

5.00

95

68
50
1.

0.

0.
0.

0.00
2005 2006 2007 2008 2009
(5.00)
Ratio

(10.00)

(15.00)

(20.00)
)
90
6.
(1

Years

Interpretation:
Sale to working capital ratio of company is showing Decreasing trend. It is
slightly decrease in2007 but it rapidly increase in 2008 & 2009. It is indication of
profitable use of working capital.

b) Leverage Ratios:
By using a combination of assets, debt, equity, and interest payments,
leverage ratio's are used to understand a company's ability to meet it long term
financial obligations.
Leverage ratios measure the degree of protection of suppliers of long term funds.
The level of leverage depends on a lot of factors such as availability of collateral,
strength of operating cash flow and tax treatments. Thus, investors should be
careful about comparing financial leverage between companies from different
industries. For example companies in the banking industry naturally operates
with a high leverage as collateral their assets are easily collateralized.
These include:
Adamjeeinsurance

Time Interest Earned:

TIE Ratio = EBIT / Interest Charges

The interest coverage ratio tells us how easily a company is able to pay
interest expenses associated to the debt they currently have. The ratio is
designed to understand the amount of interest due as a function of company’s
earnings before interest and taxes (EBIT). This ratio measures the extent to
which operating income can decline before the firm is unable to meet its annual
interest cost.

Year 2005 2006 2007 2008 2009

EBIT 1278376.0 1684747.0 4284885.0 1175877.0 2608348.00
0 0 0 0
Interest Charges 850855.00 923120.00 1054978.0 1206563.0 1239780.00
0 0
TIE Ratio 1.50 1.83 4.06 0.97 2.10

Time Interest Earned

06

4.50
4.

4.00
3.50
3.00
10
83

2.50
Ratio

2.
50

1.

2.00
1.

97

1.50
0.

1.00
0.50
0.00
2005 2006 2007 2008 2009

Years

Interpretation:

The times interest earned ratio of the company showing Increasing trend.
It is because of the increase in the interest expenses of the company. But in
2008 it decrease rapidly and after it increases.

Debt Ratio:
Debt Ratio = Total Debt / Total Assets
Adamjeeinsurance

The ratio of total debt to total assets, generally called the debt ratio,
measures the percentage of funds provided by the creditors. The proportion of a
firm's total assets that are being financed with borrowed funds. The debt ratio is
calculated by dividing total long-term and short-term liabilities by total assets. The
higher the ratio, the more leverage the company is using and the more risk it is
assuming. Assets and liabilities are found on a company's balance sheet.

Year 2005 2006 2007 2008 2009

Total Debt 6,756,211 7,351,226 11,114,216 10,451,381 10,884,495
Total Assets 9,182,380 18,765,963 11,139,099 19,242,480 21,863,615
Debt Ratio 0.74 0.39 1.00 0.54 0.50

Debt Ratio

1.20
00
1.

1.00
74
0.

0.80
54

50
Ratio

0.

0.60
0.
39
0.

0.40
0.20
0.00
2005 2006 2007 2008 2009

Years

Debt to Equity Ratio:

Debt to Equity Ratio = Total debt / Total Equity

The debt to equity ratio is the most popular leverage ratio and it provides
detail around the amount of leverage (liabilities assumed) that a company has in
relation to the monies provided by shareholders. As you can see through the
formula below, the lower the number, the less leverage that a company is using.
The debt to equity ratio gives the proportion of a company (or person's) assets
that are financed by debt versus equity. It is a common measure of the long-term
viability of a company's business and, along with current ratio, a measure of its
liquidity, or its ability to cover its expenses. As a result, debt to equity calculations
often only includes long-term debt rather than a company's total liabilities. A high
Adamjeeinsurance

debt to equity ratio implies that the company has been aggressively financing its
activities through debt and therefore must pay interest on this financing

Year 2005 2006 2007 2008 2009

Total debt 6,756,211 7,351,226 11,114,216 10,451,381 10,884,495
Total Equity 2,426,169 3,787,873 7,651,747 8,791,099 10,967,621
Debt to Equity Ratio 2.78 1.94 1.45 1.19 0.99

Debt to Equity Ratio

78

3.00
2.

2.50
94
1.

2.00
45
1.

19
Ratio

1.50

99
1.

0.
1.00
0.50
0.00
2005 2006 2007 2008 2009

Years

Interpretation:
Debt ratio of the company is showing Decreasing trend. It is all because of
a massive increase in the liabilities of the company. In previous years debt ratio
increase or decreased slightly which is reasonable.

Current Worth / Net worth Ratio:

Current Worth to Net worth Ratio= Current Worth / Net worth Ratio

We can calculate current worth and net worth by using following formulas:
Current Worth = Total Current Assets – Total Current Liabilities
Net Worth = Total Assets - Total Liabilities

Year 2005 2006 2007 2008 2009

Current Worth 2,125,294 10,645,381 (327,313) 7,842,587 10,114,691
Net Worth 2,426,169 11,414,737 24,883 8,791,099 10,979,120
Current Worth to Net worth
Ratio 0.88 0.93 -13.15 0.89 0.92
Adamjeeinsurance

Current Worth / Net worth Ratio:

93

92
88

89
2.00

0.

0.
0.

0.
0.00
-2.00 2005 2006 2007 2008 2009
-4.00
Ratio

-6.00
-8.00
-10.00
-12.00
-14.00 3.
15
-1

Years

Interpretation:
Current worth to net worth of company show random trend. In 2007, ratio
is Lowest and in 2008 & 2009.

Total Capitalization Ratio:

Total Capitalization Ratio =
Long-term debt / long-term debt + shareholders' equity

The capitalization ratio measures the debt component of a company's

capital structure, or capitalization (i.e., the sum of long-term debt liabilities and
shareholders' equity) to support a company's operations and growth. Long-term
debt is divided by the sum of long-term debt and shareholders' equity. This ratio
is considered to be one of the more meaningful of the "debt" ratios - it
delivers the key insight into a company's use of leverage.

Year 2005 2006 2007 2008 2009

Long-term debt 100,239 23,284 29,502 25,055 174,876
long-term debt 2,526,408 3,811,157 7,681,249 8,816,154 11,142,497
+ shareholders' equity
Total Capitalization 0.04 0.01 0.00 0.00 0.02
Ratio
Adamjeeinsurance

Total Capitalization Ratio:

04
0.05
0.04 0.
0.04
0.03
0.03
Ratio

02
0.02

0.
0.02
01
0.01

00
00
0.

0.

0.
0.01
0.00
2005 2006 2007 2008 2009

Years

Interpretation

Total capitalize ratio of company show Decreasing trend except in 2009. it

Increase due to Decrease in shareholders’ equity

c) Profitability Ratios:
Profitability is the net result of a number of policies and decisions. This
section of the discusses the different measures of corporate profitability and
financial performance. These ratios, much like the operational performance
ratios, give users a good understanding of how well the company utilized its
resources in generating profit and shareholder value. The long-term profitability
of a company is vital for both the survivability of the company as well as the
benefit received by shareholders. It is these ratios that can give insight into the all
important "profit". Profitability ratios show the combined effects of liquidity, asset
management and debt on operating results. These ratios examine the profit
made by the firm and compare these figures with the size of the firm, the assets
employed by the firm or its level of sales. There are four important profitability
ratios that I am going to analyze:

Net Profit Margin:

Net Profit margin = Net Profit / Sales x 100

Net Profit Margin gives us the net profit that the business is earning per dollar of
sales. This margin indicates the profit after all the costs have been incurred it
shows that what % of turnover is represented by the net profit. An increase in the
ratios indicates that a firm is producing higher net profit of sales than before.
Adamjeeinsurance

Year 2005 2006 2007 2008 2009

Net Profit 1,163,246 1,576,501 4,201,250 1,099,150 2,447,020
Sales 1,517,642 2,117,396 4,677,277 1,649,200 3,367,495
Net Profit margin 76.65% 74.45% 89.82% 66.65% 72.67%

Net Profit Margin:

2%
.8
5%

100.00%
5%

7%
89
.6

5%
.4

.6
76

74

.6

72
80.00%

66
60.00%
Ratio

40.00%

20.00%

0.00%
2005 2006 2007 2008 2009

Years

Interpretation
Net profit margin of company shows irregular trend. It decreases from
2004 to 2006 an then increase in 2007. In 2008 net profit margin massively
decrease to word negative. It is due to loss in net profit.

Operating Income Margin:

Operating Income Margin = Operating Income / Net Sales x 100

Operating Income Margin =Net mark-up / interest income after provisions +

Mark-up / return / interest expensed -
Total non mark-up / interest expenses

Year 2005 2006 2007 2008 2009

Operating Income 306,020 481,939 119,251 367,062 679,257
Net Sales 3,997,327 5,280,128 5,531,818 7,488,144 6,830,998
Operating Income Margin 7.66% 9.13% 2.16% 4.90% 9.94%
Adamjeeinsurance

Operating Income Margin:

%
12.00%

94
%
13

9.
%
10.00%

9.
66
7.
8.00%

%
Ratio

90
6.00%

4.
%
4.00%

16
2.
2.00%
0.00%
2005 2006 2007 2008 2009

Years

Interpretation:
Operating income margin of company shows decreasing trend. It is due to
operating income Is not increase rapidly as net sale increase. In 2008 operating
income massively decrease toward loss and operating income margin goes to
negative 94.96%.

Return on Assets:
Return on Assets (ROA) = Profit after Taxation / Average Total assets x 100

ROA, A measure of a company's profitability, equal to year's earnings

divided by its total assets, expressed as a percentage. This is an important ratio
for companies deciding whether or not to initiate a new project. The basis of this
ratio is that if a company is going to start a project they expect to earn a return on
it, ROA is the return they would receive. Simply put, if ROA is above the rate that
the company borrows at then the project should be accepted, if not then it is
rejected.

Year 2005 2006 2007 2008 2009

Profit after Taxation 1,163,246 1,576,501 4,201,250 1,099,150 2,447,020
Average Total assets 0 18565361.5 24335512.5 20760339 30174287.5
Return on Assets 0 8.49% 17.26% 5.29% 8.11%
Adamjeeinsurance

Return on Assets:

6%
0.2

.2
17
0.15

%
49
Ratio

11
0.1
8.

8.
29
5.
0.05
0

0
2005 2006 2007 2008 2009

Years

Interpretation:

A random trend can be seen in this ratio. There is significant decrease in

return in 2008. it is due to massive loss after tax. Return on assets goes toward
negative. Heavy loss on ROA was bear by company in 2008.

Return on Equity (ROE):

Return on Total Equity = Profit after taxation / Total Equity x 100

Return on Equity measures the amount of Net Income earned by utilizing

each dollar of Total common equity. It is the most important of the “Bottom line”
ratio. By this, we can find out how much the shareholders are going to get for
their shares. This ratio indicates how profitable a company is by comparing its
net income to its average shareholders' equity. The return on equity ratio (ROE)
measures how much the shareholders earned for their investment in the
company. The higher the ratio percentage, the more efficient management is in
utilizing its equity base and the better return is to investors

Year 2005 2006 2007 2008 2009

Profit after Taxation 1163246 1576501 4201250 1099150 2447020
Total Equity 2426169 3787873 7651747 8791099 10967621
Return on Total Equity 47.95% 41.62% 54.91% 12.50% 22.31%
Adamjeeinsurance

Return on Equity (ROE):

1%
5%

.9
60.00%

54
.9

2%
47

.6
50.00%

41
40.00%

1%
Ratio

.3
30.00%

22
0%
.5
20.00%

12
10.00%
0.00%
2005 2006 2007 2008 2009

Ye ars

Interpretation:

In 2004, 2005 and 2006 ROE increase slightly but it decrease in 2007 and
2008. In 2008 massive decrease in ROE. It is due to heavy loss in profit after
taxation. Company bears heavy loss on ROE about 200%.

d) Activity Ratios:
Activity ratio are sometimes are called efficiency ratios. Activity ratios are
concerned
with how efficiency the assets of the firm are managed. These ratios express
relationship
between level of sales and the investment in various assets inventories,
receivables, fixed
assets etc.
Adamjeeinsurance

Total Asset Turnover:

Total Asset Turnover = Total Sales / Total Assets

The amount of sales generated for every dollar's worth of assets. It is

calculated by dividing sales in dollars by assets in dollars. Asset turnover
measures a firm's efficiency at using its assets in generating sales or revenue -
the higher the number the better. It also indicates pricing strategy: companies
with low profit margins tend to have high asset turnover, while those with high
profit margins have low asset turnover.

Year 2005 2006 2007 2008 2009

Total Sales 3,997,327 5,280,128 5,531,818 7,488,144 6,830,998
Total Assets 9,182,380 18,765,963 11,139,099 19,242,480 21,863,615
Total Asset Turnover 0.44 0.28 0.50 0.39 0.31

Total Asset Turnover:

0.60
50
0.
44

0.50
39
0.

0.

31

0.40
28

0.
Ratio

0.

0.30
0.20
0.10
0.00
2005 2006 2007 2008 2009

Years
Adamjeeinsurance

Interpretation:
An increasing trend can be seen. A good increase in turnover can be seen
in 2008. Company show improvement in total Asset turnover.

Sales to Fixed Assets:

This ratio is indicates that how much sales are contributed by investment
in fixed Assets.

Sales to Fixed Assets = Net Sales / Fixed Assets

Year 2005 2006 2007 2008 2009

Net Sales 3,997,327 5,280,128 5,531,818 7,488,144 6,830,998
Fixed Assets 307,536 768,413 339,773 952,049 904,914
Sales to Fixed Assets 13.00 6.87 16.28 7.87 7.55

Sales to Fixed Assets:

8
.2

18.00
16
0

16.00
.0
13

14.00
12.00
87
Ratio

55

10.00
87

7.

7.
6.

8.00
6.00
4.00
2.00
0.00
2005 2006 2007 2008 2009

Years

Interpretation
An irregular trend can be seen in sale to fixed asset ratio. In 2006 ratio
was 5.60 due more contribution of fixed asset to sale but it gradually decrease in
2007 and 2008.
Adamjeeinsurance

d) Ratio:
Market Value Ratios relate an observable market value, the stock price, to
book values obtained from the firm's financial statements.

Earning Per Share- EPS:

Earning Per Share = Profit after Taxation/Number of Shares

The portion of a company's profit allocated to each outstanding share of common

stock. Earnings per share serve as an indicator of a company's profitability.
Earnings per share are generally considered to be the single most important
variable in determining a share's price. It is also a major component used to
calculate the price-to-earnings valuation ratio.

Year 2005 2006 2007 2008 2009

Profit after Taxation 1,163,246 1,576,501 4,201,250 1,099,150 2,447,020
Number of Shares 82,614 102,235 102,235 102,235 112,459
Earning Per Share 14.08 15.42 41.09 10.75 21.76

Earning Per Share- EPS:

9
.0

45.00
41

40.00
35.00
30.00
6
.7
21
Ratio

25.00
2
8

.4
.0

20.00
15

5
14

.7

15.00
10

10.00
5.00
0.00
2005 2006 2007 2008 2009

Years
Adamjeeinsurance

Interpretation:
EPS of company show positive trend from 2004 to 2007 but it show
massive decrease in 2008. EPS in 2008 shows 19.07 loss which is due to heavy
loss in profit after tax. Investment in share of company is containing heavy risk.

Price / Earning Ratio:

Price / Earning Ratio = Stock Price Per Share/Earning Per Shares

The Price-Earnings Ratio is calculated by dividing the current market price

per share of the stock by earnings per share (EPS). (Earnings per share are
calculated by dividing net income by the number of shares outstanding.)
The P/E Ratio indicates how much investors are willing to pay per dollar of
current earnings. As such, high P/E Ratios are associated with growth stocks.
(Investors who are willing to pay a high price for a dollar of current earnings
obviously expect high earnings in the future.) In this manner, the P/E Ratio also
indicates how expensive a particular stock is. This ratio is not meaningful,
however, if the firm has very little or negative earnings. The Price-Earnings Ratio
is calculated by dividing the current market price per share of the stock by
earnings per share (EPS). (Earnings per share are calculated by dividing net
income by the number of shares outstanding.) The P/E Ratio indicates how much
investors are willing to pay per dollar of current earnings. As such, high P/E
Ratios are associated with growth stocks. (Investors who are willing to pay a high
price for a dollar of current earnings obviously expect high earnings in the future.)
In this manner, the P/E Ratio also indicates how expensive a particular stock is.
This ratio is not meaningful, however, if the firm has very little or negative
earnings.

Year 2005 2006 2007 2008 2009

Stock Price Per Share 10 10 10 10 10
Earning Per Shares 14.08 15.42 41.09 10.75 21.76
Price / Earning Ratio 0.71 0.65 0.24 0.93 0.46
Adamjeeinsurance

Price / Earning Ratio:

93
1.00

0.
0.80 71

65
0.

0.

46
0.60
Ratio

0.
0.40

24
0.
0.20

0.00
2005 2006 2007 2008 2009

Years

Interpretation:
The price/earring ratio of company shows decreasing trend. In 2008 it
significantly decrease to ward negative. It is not favorable for investment.
Negative price / Earning ratio in 2008 is due to heavy loss in earning per share.
Loss is about Rs. 19 per share.

Book Value per Share:

Book Value per Share = Shareholders’ Equity/Share Capital

This is defined as the Common Shareholder's Equity divided by the

Shares Outstanding at the end of the most recent fiscal quarter. It is the
Indication of the net worth of the corporation. Somewhat similar to the earnings
per share, but it relates the stockholder's equity to the number of shares
outstanding, giving the shares a raw value. Comparing the market value to the
book value can indicate whether or not the stock in overvalued or undervalued.
Year 2005 2006 2007 2008 2009
Shareholders’ Equity 2,426,169 3,787,873 7,651,747 8,554,460 10,751,391

Share Capital 826,142 1,022,351 1,022,351 1,022,351 1,124,586

Book Value per Share 2.94 3.71 7.48 8.37 9.56

Adamjeeinsurance

Book Value per Share:

12.00

56
9.
37
10.00

8.
48
7.
8.00
Ratio

6.00
71
94

3.
4.00
2.

2.00
0.00
2005 2006 2007 2008 2009

Years

Interpretation
Book value per share of company show random trend. In 2004, it is 2.93
and it decrease in 2005 to 2.88. In 2006 book value per share increase to 3.68
and in 2007 it goes negative to 3.58. In 2008 it decrease significantly to 0.95.
Adamjeeinsurance
Adamjeeinsurance

Recommendation

1) INTERNAL CONTROL
To me the major and the most important flaw in the AIGL is lack of
internal controls and inter communication between different branches of the
bank. As far as financial aspect is concerned there is no proper system is
configured that’s why there is always a risk of big frauds with in the bank. I
during my internship also pointed out that point but no one bothered. To me
the bank should install some proper resource planning and controlling
systems like other banks do i.e., oracle financials etc.

2) PROFESSIONAL TRAINING

AIGL staff lacks professionalism. They lack the necessary training to

do the job efficiently and properly. Although staff colleges are in all major
cities of the Punjab but they are not performing well. For this purpose these
staff colleges should be reorganized and their syllabus should be made in
such a way which can help the employee understand the ever-changing
global economic scenario.
Banking council of Pakistan should also initiate some programs to
equip the staff with much needed professional training.

3) DELEGATION OF AUTHORITY

Employees of the bank should be given a task and authority and they
should be asked for their responsibility. The sense responsibility in employees
mind is one of the most important factors in the success of any organization.

4) PERFORMANCE APPRAISAL
There is no or very less appraisal of any ones cool performance.
The manager should strictly monitor the performance of every staff
member. All of them should be awarded according to their performance
and result in the shape of bonuses to motivated and incite them to work
more efficiently.
Adamjeeinsurance
Adamjeeinsurance

BALANCE SHEET

ADAMJEE INSURANCE LTD

Balance Sheet
2005 2006 2007 2008 2009
Share capital and
reserves
Authorised share capital 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000

Paid-up share
capital 826,142 1,022,351 1,022,351 1,022,351 1,124,586

Retained
earnings 1,386,904 1,802,399 5,666,273 6,453,878 8,522,098
Reserv
es 213,123 963,123 963,123 1,078,231 1,104,707
1,600,027 2,765,522 6,629,396 7,532,109 9,626,805
Equity attributable to equity holders
of the paren 2,426,169 3,787,873 7,651,747 8,554,460 10,751,391
Minority intreset 236,639 216,230
Total equity 2,426,169 3,787,873 7,651,747 8,791,099 10,967,621
Balance of statutory funds 0 11,499
Underwriting provisions
Provision for outstanding claims (including
IBNR) 3,070,778 3,208,084 5,022,620 4,562,553 3,584,772
Provision for unearned
premium 2,427,491 2,974,462 4,252,005 4,014,822 4,405,817
Commission income
unearned 108,894 113,575 236,039 176,500 228,439
Total underwriting
provisions 5,607,163 6,296,121 9,510,664 8,753,875 8,219,028
Deferred
liabilities
Deferred taxation 74,270
Staff retirement benefits 2,615 3,085 3,688 9,166 14,298
Creditors and Accruals
Premiums received in
advance 258,821 86,901 125,682 101,247 91,169
Amounts due to other insurers /
reinsurers 241,565 248,565 579,621 596,123 960,748
Accrued
expenses 56,916 85,758 79,174 84,153 156,626
Taxation - provision less payments 5,455
Other creditors and
accruals 488,892 607,512 785,885 881,762 1,188,025
Adamjeeinsurance

1,046,194 1,028,736 1,570,362 1,663,285 2,402,023

Borrowings 74,831
Liabilities against assets subject to
finance lease 16,176 10,019 148,911
Other liabilities 91,007 10,019 148,911
Unclaimed
dividends 9,232 13,265 29,502 25,055 25,965
TOTAL LIABILITIES 6,756,211 7,351,226 11,114,216 10,451,381 10,884,495
CONTINGENCIES AND
COMMITMENTS
TOTAL EQUITY AND LIABILITIES 9,182,380 11,139,099 18,765,963 19,242,480 21,863,615

Cash and bank deposits

Cash and other equivalents 15,105 133,735 79,051 41,637 61,796
Current and other accounts 1,313,330 600,661 580,638 966,866 702,913
Deposits maturing within 12 months 99,745 219,801 223,539 1,198,950 1,408,449
1,428,180 954,197 883,228 2,207,453 2,173,158
Loans
To employees 32,206 27,312 26,259 26,852 28,383
Investments 3,039,826 8,132,102 4,502,776 7,333,959 9,815,444
Deferred
taxation 40,913 3,832
Current assets - others
Premiums due but unpaid 1,458,221 3,203,751 2,053,498 3,449,898 3,841,755
Amounts due from other insurers/
reinsurers 137,324 255,570 220,386 993,802 716,962
Salvage recoveries accrued 46,316 205,404 90,809 228,147 115,753
Premium and claim reserves retained by
cedants 26,777 32,926 36,506 28,682 24,235
Accrued investment income 22,560 31,009 28,973 44,474 47,304
Reinsurance recoveries against
outstanding claims 1,100,347 2,792,464 1,262,976 2,188,101 1,845,562
Taxation - payments less provision 345,373 157,153 297,545 133,415
Deferred commission
expense 286,641 413,543 311,942 414,701 399,884
Prepayments 732,437 1,519,241 813,618 1,064,696 1,555,207
Sundry
receivables 154,649 272,878 251,456 172,419 200,478
4,310,645 8,883,939 5,367,709 8,718,335 8,747,140
Fixed Assets - Tangible &
Intangible
Owned
Land and
buildings 36,732 181,055 33,059 177,793 174,660
Furniture and fixtures 18,957 22,373 23,312 28,171 38,843
Motor vehicles 176,128 401,922 198,628 236,243 200,253
Capital work-in-progress 64,846 2,200 22,575
Machinery and equipment 43,512 51,969 44,059 396,646 375,731
Computers and related accessories 31,167 42,940 38,472 65,275 54,583
Intangible asset - computer software 1,040 3,308 2,243 45,721 38,269
Adamjeeinsurance

307,536 768,413 339,773 952,049 904,914

Lease
d
Motor vehicles 23,074 19,354 194,576
TOTAL ASSETS 9,182,380 18,765,963 11,139,099 19,242,480 21,863,615

COMMON SIZE

ADAMJEE INSURANCE LTD

COMMON SIZE

2005 2006 2007 2008 2009

Share capital and reserves
Authorised share capital 100.00 100.00 100.00 100.00 100.00

Paid-up share capital 100.00 123.75 123.75 123.75 136.13

Retained earnings 100.00 129.96 408.56 465.34 614.47

Reserves 100.00 451.91 451.91 505.92 518.34
100.00 172.84 414.33 470.75 601.67
Equity attributable to equity holders
of the paren 100.00 156.13 315.38 352.59 443.14
Minority intreset
Adamjeeinsurance

Total equity 100.00 156.13 315.38 362.34 452.06

Balance of statutory funds
Underwriting provisions
Provision for outstanding claims
(including IBNR) 100.00 104.47 163.56 148.58 116.74
Provision for unearned premium 100.00 122.53 175.16 165.39 181.50
Commission income unearned 100.00 104.30 216.76 162.08 209.78
Total underwriting provisions 100.00 112.29 169.62 156.12 146.58
Deferred liabilities
Deferred taxation
Staff retirement benefits 100.00 117.97 141.03 350.52 546.77
Creditors and Accruals
Premiums received in advance 100.00 33.58 48.56 39.12 35.22
Amounts due to other insurers /
reinsurers 100.00 102.90 239.94 246.78 397.72
Accrued expenses 100.00 150.67 139.11 147.85 275.19
Taxation - provision less payments
Other creditors and accruals 100.00 124.26 160.75 180.36 243.00
100.00 98.33 150.10 158.98 229.60
Borrowings 100.00 0.00 0.00 0.00 0.00
Liabilities against assets subject to
finance lease 100.00 61.94 0.00 0.00 920.57
Other liabilities 100.00 11.01 0.00 0.00 163.63
Unclaimed dividends 100.00 143.69 319.56 271.39 281.25
TOTAL LIABILITIES 100.00 108.81 164.50 154.69 161.10
CONTINGENCIES AND
COMMITMENTS
TOTAL EQUITY AND
LIABILITIES 100.00 121.31 204.37 209.56 238.10

Cash and bank deposits

Cash and other equivalents 100.00 885.37 523.34 275.65 409.11
Current and other accounts 100.00 45.74 44.21 73.62 53.52
Deposits maturing within 12 months 100.00 220.36 224.11 1202.02 1412.05
100.00 66.81 61.84 154.56 152.16
Loans
To employees 100.00 84.80 81.53 83.38 88.13
Investments 100.00 267.52 148.13 241.26 322.89
Deferred taxation 100.00 0.00 0.00 9.37 0.00
Current assets - others
Premiums due but unpaid 100.00 219.70 140.82 236.58 263.45
Amounts due from other insurers/
reinsurers 100.00 186.11 160.49 723.69 522.10
Salvage recoveries accrued 100.00 443.48 196.06 492.59 249.92
Premium and claim reserves retained by
cedants 100.00 122.96 136.33 107.11 90.51
Accrued investment income 100.00 137.45 128.43 197.14 209.68
Reinsurance recoveries against
outstanding claims 100.00 253.78 114.78 198.86 167.73
Adamjeeinsurance

Taxation - payments less provision 100.00 45.50 86.15 38.63 0.00

Deferred commission expense 100.00 144.27 108.83 144.68 139.51
Prepayments 100.00 207.42 111.08 145.36 212.33
Sundry receivables 100.00 176.45 162.60 111.49 129.63
100.00 206.09 124.52 202.25 202.92
Fixed Assets - Tangible &
Intangible
Owned
Land and buildings 1.00 4.93 0.90 4.84 4.75
Furniture and fixtures 1.00 1.18 1.23 1.49 2.05
Motor vehicles 1.00 2.28 1.13 1.34 1.14
Capital work-in-progress
Machinery and equipment 1.00 1.19 1.01 9.12 8.64
Computers and related accessories 1.00 1.38 1.23 2.09 1.75
Intangible asset - computer software 1.00 3.18 2.16 43.96 36.80
1.00 2.50 1.10 3.10 2.94

Leased
Motor vehicles 1.00 0.00 0.84 0.00 8.43
TOTAL ASSETS 1.00 2.04 1.21 2.10 2.38

Vertical Analysis

ADAMJEE INSURANCE LTD

Vertical Analysis

2005 2006 2007 2008 2009

Share capital and reserves
Paid-up share capital 9.00 9.18 5.45 5.31 5.14

Retained earnings 15.10 16.18 30.19 33.54 38.98

Reserves 2.32 8.65 5.13 5.60 5.05
17.42 24.83 35.33 39.14 44.03
Equity attributable to equity holders of the paren 26.42 34.01 40.77 44.46
Adamjeeinsurance

Minority intreset 1.23 0.99

Total equity 26.42 34.01 40.77 45.69 50.16
Balance of statutory funds 0.05
Underwriting provisions
Provision for outstanding claims (including IBNR) 33.44 28.80 26.76 23.71
Provision for unearned premium 26.44 26.70 22.66 20.86 20.15
Commission income unearned 1.19 1.02 1.26 0.92 1.04
Total underwriting provisions 61.06 56.52 50.68 45.49 37.59
Deferred liabilities
Deferred taxation 0.34
Staff retirement benefits 0.03 0.03 0.02 0.05 0.07
Creditors and Accruals
Premiums received in advance 2.82 0.78 0.67 0.53 0.42
Amounts due to other insurers /
reinsurers 2.63 2.23 3.09 3.10 4.39
Accrued expenses 0.62 0.77 0.42 0.44 0.72
Taxation - provision less payments 0.02
Other creditors and accruals 5.32 5.45 4.19 4.58 5.43
11.39 9.24 8.37 8.64 10.99
Borrowings 0.81 0.00
Liabilities against assets subject to finance lease 0.18 0.09
Other liabilities 0.99 0.09 0.68
Unclaimed dividends 0.10 0.12 0.16 0.13 0.12
TOTAL LIABILITIES 73.58 65.99 59.23 54.31 49.78
CONTINGENCIES AND
COMMITMENTS
TOTAL EQUITY AND LIABILITIES 100.00 100.00 100.00 100.00 100.00

Cash and bank deposits

Cash and other equivalents 0.16 0.71 0.71 0.22 0.28
Current and other accounts 14.30 3.20 5.21 5.02 3.21
Deposits maturing within 12 months 1.09 1.17 2.01 6.23 6.44
15.55 5.08 7.93 11.47 9.94
Loans
To employees 0.35 0.15 0.24 0.14 0.13
Investments 33.10 43.33 40.42 38.11 44.89
Deferred taxation 0.45 0.00 0.00 0.02 0.00
Current assets - others
Premiums due but unpaid 15.88 17.07 18.44 17.93 17.57
Amounts due from other insurers/
reinsurers 1.50 1.36 1.98 5.16 3.28
Salvage recoveries accrued 0.50 1.09 0.82 1.19 0.53
Premium and claim reserves retained by cedants 0.29 0.18 0.33 0.15
Accrued investment income 0.25 0.17 0.26 0.23 0.22
Reinsurance recoveries against outstanding claims 11.98 14.88 11.34 11.37
Taxation - payments less provision 3.76 0.84 2.67 0.69 0.00
Deferred commission expense 3.12 2.20 2.80 2.16 1.83
Adamjeeinsurance

Prepayments 7.98 8.10 7.30 5.53 7.11

Sundry receivables 1.68 1.45 2.26 0.90 0.92
46.94 47.34 48.19 45.31 40.01
Fixed Assets - Tangible &
Intangible
Owned
Land and buildings 0.40 0.96 0.30 0.92 0.80
Furniture and fixtures 0.21 0.12 0.21 0.15 0.18
Motor vehicles 1.92 2.14 1.78 1.23 0.92
Capital work-in-progress 0.00 0.35 0.00 0.01 0.10
Machinery and equipment 0.47 0.28 0.40 2.06 1.72
Computers and related accessories 0.34 0.23 0.35 0.34 0.25
Intangible asset - computer software 0.01 0.02 0.02 0.24 0.18
3.35 4.09 3.05 4.95 4.14

Leased
Motor vehicles 0.25 0.00 0.17 0.00 0.89
TOTAL ASSETS 100.00 100.00 100.00 100.00 100.00

Profit And loss Account

ADAMJEE INSURANCE LTD

Profit And loss Account
2005 2006 2007 2008 2009
Revenue account
Adamjeeinsurance

Net premium revenue 3,997,327 5,280,128 5,531,818 7,488,144 6,830,998

- - -
Net claims 2,511,532 3,354,851 -3,915,091 -5,173,152 4,456,506
Premium deficiency reversal 40,000
-
Expenses -850,855 -923,120 -1,054,978 -1,206,563 1,239,780
Net commission -368,920 -520,218 -442,498 -741,367 -501,964
Net Investment income - statutory fund 116
Add: Policyholder's liabilities at
beginning of the year
Less: Policyholder's liabilities at
end of the year -11,498
Capital contribution from
shareholder's fund 57,891

Underwriting result 306,020 481,939 119,251 367,062 679,257

Investment income 1,147,012 1,515,259 4,486,366 1,098,050 2,533,500
Rental income 494 494 494 494 476
Other income 64,116 119,704 71,166 183,594 154,262

1,517,642 2,117,396 4,677,277 1,649,200 3,367,495

General and administration expenses -229,443 -440,926 -398,367 -511,727 -751,700
Exchange gain/ (loss) - net -8,029 9,159 6,533 38,404 4,188
Finance charge on lease rentals -1,794 -882 -558 -11,635

Profit before tax 1,278,376 1,684,747 4,284,885 1,175,877 2,608,348

Provision for taxation
Current -25,172 -67,333 -83,635 -76,727 -161,328
Deferred -89,958 -40,913

Profit after tax 1,163,246 1,576,501 4,201,250 1,099,150 2,447,020

Profit and loss appropriation account

Balance at the commencement of the year 347,579 1,386,904 1,802,399 5,666,273 6,453,878
Effect of change in accounting policy (note 4.9)
Final dividend for the year ended December 31, 2005 -123,921 -184,023 -153,353 2,441,378
[(Rs 1.5/- per share) (2004: Nil)] -82,614
Reserve for issue of bonus shares -750,000 -102,235
Transfer to general reserve -956,535 -184,023 -153,353 2,339,143

Profit after tax for the year 1,163,246 1,576,501 4,201,250 1,099,150
Interim dividend @ 10% (Re 1.0/- per share) -123,921 -90,876 -153,353 -153,353 -168,688
[2005: @ 15% (Rs 1.5/- per share)]
Issue of bonus shares -113,595
Balance unappropriated profit at the end of the
year 1,386,904 1,802,399 5,666,273 6,458,717 8,624,333
Adamjeeinsurance

Earnings per share - basic 11.38 15.42 41.09 10.75 21.76

Common size analysis of Proft & Loss

ADAMJEE INSURANCE LTD

Common size analysis
Adamjeeinsurance

2005 2006 2007 2008 2009

Revenue account
Net premium revenue 100.00 132.09 138.39 187.33 170.89
Net claims 100.00 133.58 155.88 205.98 177.44
Premium deficiency reversal 100.00 0.00 0.00 0.00 0.00
Expenses 100.00 108.49 123.99 141.81 145.71
Net commission 100.00 141.01 119.94 200.96 136.06
Net Investment income - statutory fund
Add: Policyholder's liabilities at
beginning of the year
Less: Policyholder's liabilities at
end of the year
Capital contribution from
shareholder's fund

Underwriting result 100.00 157.49 38.97 119.95 221.96

Investment income 100.00 132.10 391.14 95.73 220.88
Rental income 100.00 100.00 100.00 100.00 96.36
Other income 100.00 186.70 111.00 286.35 240.60

100.00 139.52 308.19 108.67 221.89

General and administration expenses 100.00 192.17 173.62 223.03 327.62
Exchange gain/ (loss) - net 100.00 -114.07 -81.37 -478.32 -52.16
Finance charge on lease rentals 100.00 49.16 31.10 0.00 648.55

Profit before tax 100.00 131.79 335.18 91.98 204.04

Provision for taxation
Current 100.00 267.49 332.25 304.81 640.90
Deferred 100.00 45.48 0.00 0.00 0.00

Profit after tax 100.00 135.53 361.17 94.49 210.36

Profit and loss appropriation account

Balance at the commencement of the year 100.00 399.02 518.56 1630.21 1856.81
Effect of change in accounting policy (note 4.9)
Final dividend for the year ended December 31, 2005
[(Rs 1.5/- per share) (2004: Nil)]
Reserve for issue of bonus shares
Transfer to general reserve

Profit after tax for the year 100.00 135.53 361.17 94.49 0.00
Interim dividend @ 10% (Re 1.0/- per share) 100.00 73.33 123.75 123.75 136.13
[2005: @ 15% (Rs 1.5/- per share)]
Issue of bonus shares
Balance unappropriated profit at the end of the year 100.00 129.96 408.56 465.69 621.84
Adamjeeinsurance

Earnings per share - basic 100.00 135.50 361.07 94.46 191.21

Adamjeeinsurance
Adamjeeinsurance

References
www.adamjeeinsurance.com
http://www.scribd.com
http://www.wikipedia.com
http://www.sbp.gov.pk
http://www.google.com.pk
http://www.paksearch.com.pk
http://www.finance.kalpoint.com
http://www.secp.gov.pk
http://www.wrightreports.ecnext.com
www.corporateinformation.com/Company-Snapshot.aspx