Prime Minister Shaukat Aziz has approved in principle draft insurance policy, under which Board of Directors of Pakistan Reinsurance Corporation Ltd will be full empowered to take decisions in interest of PRCL.
A high-powered review committee headed by Commerce Minister Humayun Akhtar Khan after reviewing issues of insurance sector in the country presented draft insurance policy to Prime Minister, said Chairperson PRCL Ms Rukhsana Saleem.
Addressing annual general meeting of PRCL's shareholders in Karachi, she said right of first refusal entitlement which was likely to end upto year 2009 now will remain intact and insurance market continue to offer 35 percent of its proportional and non-proportional treaty share.
PRCL shall continue to retain as a strong public sector company in reinsurance market and Insha Allah grow from strength to strength, she observed. For last two years, company is operating in highly competitive open market scenario without support of compulsory cession. "Despite this we secured 45 percent market share of total reinsurance business. This encouraged us to explore new business avenues".
Ms Saleem said in year 2006 gross premium increased to Rs 4499 million as compared to Rs 4159 million in 2005, an increase of Rs 340 million. Net operational income during year increased to Rs 78 million from Rs 594 million in 2005 to Rs 672 million in 2006.
The new premium was Rs 1416 million in 2006 as compared to Rs 2005 million in 2005. Net claims for 2006 were Rs 777 million as compared to Rs 823 million for previous year.
She said company is enhancing capacity to retain more business on its own account, and plans to increase limits of its excess of loss programme from next renewal and enhancing capital base. In the current year 20 percent of capital was increased by issuing bonus shares. Due to these measures paid-up capital would now be Rs 520 million against existing Rs 450 million.