Slic likely to earn Rs 10 billion profit for 2003

The State Life Insurance Corporation of Pakistan (Slic) is expected to earn a profit of Rs 10 billion during the calendar year 2003. This was stated by the Slic's chairman, Rasool Bakhsh Baloch, here on Friday.
"We are expecting our estimated surpluses are over Rs 10 billion during the period," he remarked.
Baloch further pointed out that this amount would be added to the life fund of Slic, which would soar to Rs 96 billion from Rs 86 billion.
However, it was pointed out that the accounts of the organisation are finalised by the end of March. The actuarial valuation is carried out by the appointed actuary.
He said the target for the new business in the individual life insurance to the tune of Rs 2.12 billion under the head of first year premium. The target for the current year under the head of group insurance is to the tune of Rs 2.8 billion.
The Slic chief hoped that in the current year the organisation would not only achieve its targets but also surpass the same and the overall profit would be more than that of the year 2003.
He said the new policies that have been sold in 2003 are 1,83,595, which is a good number more than for the year 2002.
Baloch disclosed that the Slic is contemplating introducing short-term plans of three to five years in the realms of life insurance.
"We are working on this and our actuarial division has taken this up and if found feasible then we would place the same before our field workers and seek their opinion and suggestions. In the light of the same, the plans would be improved further and after approval it would be introduced," he said adding that these plans would be opened to all.
The Slic chief pointed out that mainly these would be the investment oriented plans as far as the individual life insurance is concerned. For the group life insurance the organisation keeps on adding new plans keeping in view the requirements.
He was of the view that there is quite a lot of room for insurance in the country especially in the life insurance.
Baloch pointed out that the life and group insurance combined in Pakistan is about 25 percent, which is quite less. In India this percentage is more than of Pakistan. In the developed countries such a percentage is more than 90 or even beyond that.
There are more than two million individual life insurance policy holders in Pakistan and of these the Slic caters to 1.6 million policy holders.