Armed with an asset base of Rs 28 billion, and an issued and paid-up capital of Rs 3.5 billion, Adamjee Insurance ranks as the third largest player in the private non-life insurance sector of Pakistan. Incorporated in 1960 as a public limited company, the company is involved in the business of general insurance. Not only it has the presence in Pakistan, the firm runs two branches in UAE as well. The company is listed on all three stock exchanges of Pakistan.
Adamjee Insurance with Hollard Insurance based in South Africa have commenced life assurance operations through a separate entity named as Adamjee Life Assurance Company Limited.
To add to the woes, investment ratio reduced nearly by half. Dwindling investment income is the outcome of impairing gains on sale of available for sale investments. This coupled with shrinking dividend income and returns on term finance certificates kept a lid on bottomline growth during the period.
Currently, agency distribution channel is the key distribution channel in place. Usage of technology to come up with alternative mediums can serve as a quantum leap for the industry. To mention a few, ATMs and UBLOmni are some of the many ways to increase the outreach. Moreover, development of low cost and high need based products remains crucial.
Unfortunately, the growth of non-life insurance sector is closely linked to the overall economic growth. The performance of insurance industry gets better in times of uplifting economy. Similarly, rising levels of disposable income can also give a boost. Last but not the least, lack of familiarity and knowledge about insurance products deters people to invest in insurance schemes. Although insurance companies are devoting efforts to create awareness by way of active advertisement campaigns, the journey is still long and strenuous. In this context, the introduction of microinsurance regulations is a crucial development. By way of microinsurance, the low-class segment of the society are being brought under the realm of insurance. Also, Pakistan being an agrarian economy has a huge scope of agri-insurance.

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Adamjee Insurance (P&L)
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Rs (mn)                      2012        2013      1HCY14
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Net premium revenue         5,672       5,506       3,055
Net claims                (4,143)     (3,487)     (1,981)
Expenses                  (1,583)     (1,535)       (847)
Net commission              (359)       (348)       (196)
Underwriting result         (413)         136          31
Investment income           1,332       2,357       1,018
Other income                  164         148          50
General & admin expenses    (411)       (445)       (169)
Profit before taxation        669       2,210         930
Tax                          (42)       (244)        (86)
Profit after taxation         627       1,966         844
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