ISLAMABAD: Pakistan's public sector insurance companies have not only increased their market share but also launched innovative products to cater to the needs of low-income individuals and micro-entrepreneurs.
A high-level meeting was convened on Thursday to review the performance of public sector insurance companies - State Life Insurance Company (SLIC), National Insurance Company (NIC) and Pakistan Reinsurance Company (PRC).
The meeting chaired by Caretaker Finance Minister Shamshad Akhtar was attended by Caretaker Commerce Minister Gauhar Ijaz and other relevant federal secretaries.
At the outset, Mr. Ijaz said that public sector insurance companies have been the engine of growth for the industry's performance. He added that over the years, they have consistently demonstrated their ability to navigate economic cycles, maintain financial stability and adapt to changing market conditions. It has seen a significant increase in market share, exceeding 50 percenthas reached an impressive 70 percent, with growth rates expected to continue through 2023. 2022, while its investment income is over Rs 206bn.
Total assets under management of SLIC have reached Rs 1.55 trillion, with Rs 1.2 trillion invested in government securities and Rs 155bn in the Pakistan Stock Exchange (PSX). In 2023 alone, SLIC invested Rs 313bn in government securities and Rs 40bn in PSX, demonstrating its strong support for capital markets.
SH upLIC's projected total profit for 2023 is likely to be Rs130bn, up significantly from Rs110bn in 2022. New business premium revenue is expected to grow from Rs174bn in 2022 to Rs200bn in 2023.
In 2023, SLIC's expected total profit is Rs 130bn compared to Rs 110bn in 2022.
NICL has doubled its revenue in three years and had a gross written premium (GWP) of Rs 30bn by the end of 2023 with a market share of around 17.5 per cent in the general insurance industry. With the largest equity, it has large underwriting capabilities to meet national projects and asset needs for both marine and non-marine businesses.
NICL's investment portfolio has increased to Rs 60 billion while the insurance industry's investment portfolio has increased to Rs 115 billion in FY22. The company earns an investment return of Rs 6 billion plus rental income of Rs 560 million.
NICL pays a dividend of Rs 700 million to the federal government every year and is the highest taxpayer in the industry. NICL has a customer base with a net claims ratio of 54pc as against the industry average of 47pc in FY22.
PRCL's paid-up capital increased from Rs 3 billion to Rs 9 billion in the last two years while the annual gross premium exceeded Rs 25 billion. Its net underwriting profit doubled and gross profit increased by more than 100pc. The company has achieved full automation.
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