Annual Report Apr2006

1932
75 Years: Reaching this

milestone is a significant
accomplishment in the
life of any organization. It demonstrates the
strong culture and vision of EFU together with
the exceptional capabilities of the EFU
employees. And it brings home the fact that
we have a 75 year history of commitment to
customers, partners, employees and the
communities in which we operate. However,
the real importance of the occasion is not in
celebrating the past. Instead, we enter our 75th
year energized for the future as even a better
trustee, a better employer, a better partner and
a better citizen. The knowledge, experience, and
strength that we have built up over 75 years is
invaluable, and we will continue growing and
expanding, as always in the
spirit of caring and sharing.
2007
Contents
27
Statement of
Changes in Equity
49
Statements under
Section 52(2) of
Insurance Ordinance 2000
15
Report of the
Directors to
the Members
28
Statement
of Cash Flows
50
Pattern of
Shareholding
19
Key Financial
Data for the
Last Six Years
29
Revenue Account
51
Group
Benefits-Offices
20
Statement of
Compliance with
the Code of
Corporate Governance
30
Statement
of Premiums
52
Individual
Life-Offices
31
Statement
of Claims
02
We are focused
on our customers
03
We possess
demonstrable
financial strength
04
We are confident
about our future
05
Quality Policy
06
Life at EFU Life
22
Review Report to
the Members on
Corporate Governance
08
Company
Information
23
Auditors Report
to the Members
32
Statement
of Expenses
09
Management
24
Balance Sheet
33
Statement of
Investment Income
10
Committees
26
Profit and Loss

Account
34
Notes to the
Financial Statements
EFU LIFE ASSURANCE LTD
11
Notice
of Meeting
Form of Proxy
Annual Report 2006
WE ARE FOCUSED ON OUR
CUSTOMERS
Our values give us a sharply defined customer focus which

attunes us finely to their needs. Our expertise in life insurance
empowers us to devise solutions that are timely, and tailored
to the requirements of the many and diverse segments of
the society we serve.
As a body corporate, we daily rededicate ourselves to winning
the loyalty of our customers, by being caring, satisfying, and
serving them beyond expectations. We achieve this by
listening keenly to our customers, creating new and better
products that answer their present and evolving needs.
By focusing on what we do best and doing it better tomorrow
than we did yesterday, we continue to create superior value
and prosperity for more and more customers across Pakistan.
All of this has made us the private sectors largest Life
Insurance provider in Pakistan.
Annual Report 2006
WE POSSESS DEMONSTRABLE FINANCIAL
STRENGTH
Promises are given credence by the ability to keep them.

This holds true for all human activity.
The company has registered strong profitability in the last
few years which is expected to improve further given the
growth prospects of the industry. EFU Life is well positioned
to increase its business volumes on account of its dedication
to customer services, comprehensive product range, sizable
and effective distribution channels, and increasing use of
technology in its business.
The fact that EFU Life is the only Life Insurance Company
in Pakistan to have an Insurer Financial Strength rating of
A+ (stable) from JCR-VIS has established its strong financial
strength and has placed it in the forefront of Life Insurance
industry in Pakistan.
Annual Report 2006
WE ARE CONFIDENT ABOUT OUR
FUTURE
The success of our past enables us to look ahead with

confidence. We live in exciting times, with major social
developments and shifts going on around us. Increase in
literacy, attainment of better and higher education among
more youth than ever before, far greater access to information
than available to preceding generations, the ever shrinking
global village and rapidly changing lifestyles characterize
our society.
In these momentous changes, we see an emerging number
of challenges and opportunities. We are confident that the
wisdom, creativity and commitment that our team daily
demonstrates will see us through the challenges of the
future with even greater success.
Our financial strength and single-minded management focus
enables us to take advantage of the growth trends that are
transforming our industry. We possess the means and the
will to execute our growth strategies from a position of
strength in an increasingly competitive market place. As with
our past, our future will also show the reality of our core
belief: commitment to customer interest and real long-term
value for all stakeholders.
Annual Report 2006
QUALITY
POLICY
Our Vision
To make EFU Life the best Life Insurance Company, our
Clients will be the focus of everything that we do. We will
win their loyalty by caring, satisfying, and serving them
beyond expectations.
Our Values
For us Life Insurance is service to humanity, not just a business.
We abide by the highest principles of good conduct, moral
integrity and impeccable ethics.
Our Mission
We shall together build EFU Life into a dynamic and financially
sound institution by:
Working together as a team

Continually improving our client service
Creating an empowered and self-fulfilling culture
Developing innovative products
Adopting leading technology
Annual Report 2006
Life at EFU Life

Significant events during 2006.
<<
January
>>
EFU Life launched an SMS-based service,

offering sales consultants information
support directly on their cell phone
allowing access to online information at
their fingertips. This was yet another step
towards improving customer services.
<<
February
February
EFU Lifes MDRT qualifiers attended a

meeting in Thailand called MDRT
Experience. The Million Dollar Round Table
(MDRT) is a group of top financial advisors
in the global life insurance industry. We
are enriched by our team members who
continue to take us to greater heights every
year as the only insurance company of
Pakistan with such a success story at the
MDRT. All 125 MDRT qualifiers were
present at the meeting, which was held at
the Bangkok convention centre.
EFU Life and ABN AMRO signed an

agreement to provide life insurance
products to ABN AMRO customers. The
agreement was signed by Mr. Taher G.
Sachak, Managing Director & Chief
Executive, EFU Life and Mir Nejib Rahman,
Head of Consumer Banking,
ABN AMRO.
>>
March
This month marked the EFU Life annual sales
conference 2006. The theme was Accelerate
and it was held in Sheraton, Karachi. This
conference brought together all of our important
business contributors on one platform. Sales
teams from all over Pakistan both from individual
life and group life were present. Together,
achievements during 2005 were celebrated, and
new strategies were formulated for the future.
Annual Report 2006
>>
April
EFU Life acquired a plot of land to construct
EFU Life House in Karachi. The
purpose-designed 8 storey building will
eventually house the companys corporate
headquarters and would be an outstanding
addition to the citys distinctive
commercial buildings.
>>
>>
May
June
Training session in
progress at EFU Lifes
Karachi office. The
company maintains
a rigorous
international
standard training
programme for its
employees and
sales team.
Initiatives were taken to

further reinforce our strong
relationship with our valued
clients by introducing EFU
Client Service call center.
Customers can get connected
to the call center free
of charge by dialing
0800-33800.
>>
July
>>
EFU Life signed a Bancassurance

agreement with Doha Bank Qatar. Under
this arrangement, Doha Bank will
distribute EFU Lifes savings products to
non resident Pakistanis. EFU Life has
especially designed three products Smart
Savings Plan, Smart Education Plan and
Smart Retirement Plan to cater to the
need of the NRPs in Qatar. This is the first
such arrangement by any insurance
company in Pakistan.
August
EFU Life achieved another milestone when a new and flexible
high value plan - Prosperity for Life was launched. It is one
of its kind in Pakistan, serving as a single financial tool for
savings and protection, which stays with the customer
throughout his life.
>>
>>
September
EFU Lifes Network has increased to 79 branches
throughout the country, making it the largest in the
private Life Insurance sector. Through these branches
we are able to reach a larger segment of the population.
October
The market value of our Managed
Growth Fund exceeded Rs. 5 Billion.
The Annualized growth rate of this
fund had been 19.09% and
16.20% over the last 5 and 10 years
respectively. In addition to the size,
the fund has consistently also been
giving good returns to the
policy holders.
>>
EFU Life hosted a one day conference
on Bancassurance. The objective of
the conference was to create awareness
about this new distribution channel.
Speakers from Sidat Hyder, the Insurance
and Banking sector, SECP and Watson
Wyatt Worldwide were present at this
event. Around 150 delegates participated
in the conference.
>>
November
December
This month marked an achievement for EFU
Group. The gross premium of the Group in
2006 increased to Rs. 12.2 Billion. This is an
increase of 31% over 2005 and reaffirms the
financial strength and stability of the EFU Group.
Annual Report 2006
Company Information
Chairman
Auditors
Saifuddin N. Zoomkawala
KPMG -Taseer Hadi & Co.

Chartered Accountants, Karachi
Managing Director
& Chief Executive
Gardezi & Co.

Chartered Accountants, Karachi
Taher G. Sachak
Directors
Ashraf W. Tabani
Jahangir Siddiqui
Rafique R. Bhimjee
Muneer R. Bhimjee
Hasanali Abdullah
Corporate Secretary
Syed Mehdi Imam
Appointed Actuary
Omer Morshed, F.C.A., F.P.S.A., F.I.A.
Consulting Actuary & Advisor
Michael J de H. Bell, F.I.A.
Rating
Rating Agency: JCR-VIS
Insurer Financial Strength Rating A+
Outlook: Stable
Website:
www.efulife.com
Registered Office
Al-Malik Centre
70 W, F-7/G-7 Jinnah Avenue
(Blue Area), Islamabad
Main Office
37-K, Block 6, P.E.C.H.S., Karachi
Legal Advisor
Mohammad Ali Sayeed, M.A.B.L.
Annual Report 2006
Management
Managing Director & Chief Executive
Senior Managers
Taher G. Sachak
Evelyn D. Abrogena
Nadym Chandna
National Sales Director

Naseem A. Chaudhari
Executive Director
S. Ali Raza Zaidi
Medical Director
Dr. Tajuddin A. Manji, F.R.C.P., M.R.C.P.
General Manager
Jamshaid Islam
Assistant General Managers
Khurram Amin
Mohammed Ali Ahmed
S. Shahid Abbas
Zain Ibrahim
Managers
Arshad Iqbal
Asim Maqbool
Dr. Naila Salman
Fayyaz Mehmood Tahir
Mohammad Asim Khan
Mohammad Faisal
Mohammad Zubair
Naveed Shahid
Advisors
Arshad Abdullah
S. A. Naqvi
S.M. Baqar Naqvi
Annual Report 2006
Committees
Audit Committee
Claim Settlement Committee
Rafique R. Bhimjee
Hasanali Abdullah
Taher G. Sachak
S. M. Baqar Naqvi
Jamshaid Islam
Zain Ibrahim
Arshad Iqbal
Investment Committee
Taher G. Sachak
Rafique R. Bhimjee
Hasanali Abdullah
Omer Morshed
Underwriting Committee
Reinsurance Committee
Taher G. Sachak
Omer Morshed
Jamshaid Islam
Mohammed Ali Ahmed
Khurram Amin
Taher G. Sachak
S. M. Baqar Naqvi
Dr. Tajuddin A. Manji
Jamshaid Islam
Zain Ibrahim
Dr. Naila Salman
10
Annual Report 2006
Notice of Meeting
Notice is hereby given that the 15th Annual General Meeting of the Shareholders of E F U Life Assurance Ltd. will
be held at the Registered Office of the Company at Al-Malik Centre, 70 W, F-7/G-7 Jinnah Avenue (Blue Area),
Islamabad on Saturday April 28, 2007 at 10:30 a.m. to:
A. ORDINARY BUSINESS:
1.
confirm the minutes of the 14th Annual General Meeting held on April 28, 2006.
2.
receive, consider and approve the Audited Financial Statements for the year ended December 31, 2006 together
with the Directors and Auditors reports thereon.
3.
consider and if thought fit to approve the payment of Dividend at the rate of Rs. 2 per share for the year ended
December 31, 2006 as recommended by the Board of Directors.
4.
appoint Auditors for the year 2007 and fix their remuneration.
B. SPECIAL BUSINESS:
5
consider and if thought fit to pass the following Ordinary Resolution with or without modification(s):
RESOLVED that a sum of Rs. 200,000,000 out of the free reserves of the Company be capitalised and applied to
the issue of 20,000,000 Ordinary Shares of Rs. 10/- each and allotted as fully paid up Bonus Shares to the Members,
who are registered in the Books of the Company at the close of business on April 16, 2007 in the proportion of
two new shares for every three existing Ordinary Shares held and that such new shares shall rank pari passu with
the existing Ordinary Shares of the Company.
Further resolved that the members fractional entitlement to Bonus Shares may be consolidated and sold in the
stock market and the net sale proceeds of such fractional entitlements when realized be paid to a charitable
institution.
That for the purpose of giving effect to the foregoing, the Managing Director / Chief Executive or the Corporate
Secretary be and are hereby singly authorised to give such directions as may be necessary and settle any questions
or any difficulties that may arise in the distribution of the said new shares or in the payment of the sale proceeds
of the fractions.
6.
consider and if thought fit to pass the following Special Resolution with or without modification(s):
RESOLVED that consent of the Company be and is hereby accorded to further Invest maximum of Rs. 300,000,000
(Rupees three hundred million only) in the shares of EFU General Insurance Ltd., an associated public limited
company.
The investment be made from time to time as the Managing Director (Chief Executive) and / or other Attorney(s)
of the Company may deem fit.
FURTHER RESOLVED that Chief Executive or Corporate Secretary be and are hereby individually authorized to fulfill
all legal and corporate formalities for making the above investment.
FURTHER RESOLVED that the Special Resolution be and is hereby passed for the purpose of compliance of Section
208 of the Companies Ordinance, 1984.
Annual Report 2006
11
7.
consider and if thought fit to pass the following Special Resolution with or without modification(s):
RESOLVED that the Authorised Share Capital of the Company be and is hereby increased from Rs. 500,000,000
to Rs. 1,000,000,000 by the creation of 50,000,000 new shares of Rs. 10/- each and the Memorandum and
Articles of Association of the Company be amended as under:
That the words and figures Rs. 500,000,000 (Rupees five hundred million) divided into 50,000,000 Ordinary
Shares of Rs. 10/- each appearing in Clause V of Memorandum of Association and Clause 4 of Articles of
Association of the Company be substituted with word and figures Rs. 1,000,000,000 (Rupees one billion) divided
into 100,000,000 Ordinary Shares of Rs. 10/- each.
8.
transact any other matter with the permission of the Chair.

By Order of the Board
March 24, 2007
SYED MEHDI IMAM

Corporate Secretary
NOTES
1.
A member entitled to attend and vote at the General Meeting is entitled to appoint another member as a proxy
to attend and vote in respect of him. Form of proxy must be deposited at the Companys Registered Office not
later than 48 hours before the time appointed for the meeting.
2.
CDC Account holders are advised to follow the following guidelines of the Securities and Exchange Commission
of Pakistan.
A. For attending the meeting:

(i)
In case of individuals, the account holder or sub-account holder and / or the person whose securities are in
group account and their registration details are uploaded as per the Regulations, shall authenticate his identity
by showing his original Computerized National Identity Card (CNIC) or original passport at the time of
attending the meeting.
(ii) In case of corporate entity, the Board of Directors resolution / power of attorney with specimen signature
of the nominee shall be produced (unless it has been provided earlier) at the time of the meeting.
B. For appointing proxies:

(i)
In case of individuals, the account holder or sub-account holder and / or the person whose securities are in
group account and their registration details are uploaded as per the Regulations, shall submit the proxy form
as per the above requirement.
(ii) The proxy form shall be witnessed by two persons whose names, addresses and CNIC numbers shall be
mentioned on the form.
(iii) Attested copies of CNIC or the passport of the beneficial owners and the proxy shall be furnished with the
proxy form.
12
Annual Report 2006
(iv) The proxy shall produce his original CNIC or original passport at the time of the meeting.
(v) In case of corporate entity, the Board of Directors resolution / power of attorney with specimen signature
shall be submitted (unless it has been provided earlier) alongwith proxy form to the Company.
3.
The Share Transfer Books of the Company will be closed from April 17, 2007 to April 28, 2007 (both days inclusive).
4.
Members are requested to communicate to the Company of any change in their addresses.
5.
Statement under section 160 of the Companies Ordinance, 1984 is being sent to all the members.
Statement under section 160 of the Companies Ordinance, 1984 pertaining to the Special business:
1. This statement sets out the material facts pertaining to the Special business to be transacted at the Annual General
Meeting of the Company to be held on April 28, 2007.
2. Item 5 regarding Bonus issue:

Your Directors have recommended the issue of Bonus Shares in the proportion of two new shares for every three
existing Ordinary Shares held at the close of business on April 16, 2007. The Directors are interested in this
business to the extent of their entitlement to Bonus Shares as Members.
3. Item 6 regarding investment in associated company:

EFU General Insurance Ltd. (EFU General) is a leading general insurance company in the country. As on December
31, 2006 it had asset base of Rs. 10.63 billion. Its After tax profit for the year 2004, 2005 & 2006 were Rs. 322
million, Rs. 506 million and Rs. 762 million respectively. EFU General as on December 31, 2006 has Paid-up Capital
of Rs. 500 million, General Reserve of Rs. 500 million and Retained earning of Rs. 778 million.
The information required under SRO No. 865 (1) 2000 is as under:
i)
Name of Investee Company:

EFU General Insurance Ltd.
ii)
Nature, amount and extent of investment:

Long-term strategic investment up to Rs. 300 million in Ordinary shares of Rs. 10 by way of purchase
from the Stock Exchange at a price ruling on the date of purchase.
iii) Average market price of the shares intended to be purchased during preceding six months:
Rs. 216.08 (September 16, 2006 to March 15, 2007)
iv) Break-up value of shares intended to be purchased on the basis of last published financial
statements:
Rs. 33.51 (September 30, 2006)
v)
Price at which shares will be purchased:

Not more than the price quoted on Stock Exchange.
vi) Earning per share of investee company in last three years:

2004 Rs. 15.35
2005 Rs. 16.88
2006 Rs. 15.24
Annual Report 2006
13
vii) Sources of funds from where shares will be purchased:

Internal generation
viii) Period for which investment will be made:
Long-term
ix) Purpose of investment:
Strategic investment
x)
Benefits likely to accrue to the Company and the shareholders from the proposed investment:
Better return and capital appreciation.
xi) Interest of Directors and their relatives in the investee company:

No Director or Chief Executive has any interest in the proposed investment, except in their capacities as
Directors / Chief Executive and / or as shareholders of the Company.
xii) Status of approvals for investments in associated Companies:
As required under the SRO No. 865(1)2000 dated December 6, 2000, the position of various investments
in associated and subsidiary companies against approval is as under:
Against the approval accorded by shareholders of the Company at last Annual General Meeting for
investments in associated / subsidiary public limited companies of Rs. 100 million in EFU General Insurance
Ltd., Rs. 120 million in EFU Family Takaful Ltd. and Rs. 20 million in EFU General Takaful Ltd., the Company
has invested Rs. 85.3 million in shares of EFU General Insurance Ltd. No investment has been made in
EFU Family Takaful Ltd. and proposed EFU General Takaful Ltd. as outcome of the proposal of the insurance
industry to the Government of Pakistan for allowing Takaful business also to be carried out as Window
operation similar to the window operations allowed to Banks is awaited.
4. Item 7 regarding increase in Authorised Capital:

The Authorised Share Capital of EFU Life Assurance Limited at present is Rs. 500,000,000. In order to take care
of expansion, it is considered necessary to increase the Authorised Share Capital from Rs. 500,000,000 to
Rs. 1,000,000,000.
14
Annual Report 2006
Report of the Directors to the Members
EFU Life Assurance Ltd. Board of Directors (Standing Left to Right) Jahangir Siddiqui; Rafique R. Bhimjee; Ashraf W. Tabani;
Saifuddin N. Zoomkawala, Chairman; Taher G. Sachak, Managing Director & Chief Executive; Muneer R. Bhimjee; Hasanali Abdullah
The Directors of your Company are pleased to present

to you the Fifteenth Annual Report of the Company
for the year ended 31 December 2006.
The year 2006 proved to be another good year for
EFU Life. Your Company continued to grow in business
as well as profitability. With a focus on exceeding
client expectations and through use of innovative
technology, EFU Life continued to stay ahead of its
competition by providing unmatched products and
services to its clients. The success of EFU Life is a
tribute to the skills and dedication of its people in
whom we continue to invest by providing better
training and resources.
Due to steps taken during the year, there was an

increase in the size and productivity of the sales force.
Eight new branches were opened during 2006
increasing the total number of branches to 80. 130
individuals from EFU Lifes sales force qualified for the
Million Dollar Round Table (an association based in
GROSS PREMIUM
(Group & Individual Life Regular Premium)
2,438
One of the key indicators of EFU Lifes success is its

profitability which continues to grow over the years.
Your Company made a pre-tax profit of Rs 338 million
during 2006.
EFU Life maintained its growth trajectory by showing
a 34% growth in total premium income in 2006 which
amounted to Rs 3.34 billion (2005: Rs 2.50 billion).
2,285
1,762
1,730
1,317
1,296
944
933
658
927
635
Regular premium individual life insurance which is

your Companys major line of business increased by
32% to Rs 2.28 billion (2005: Rs 1.73 billion).
This consisted of Rs 735 million (2005: Rs 565 million)
of new business premium and Rs 1.6 billion
(2005: Rs 1.2 billion) of renewal premium.
3,212
(Rupees in Million)
708
443
215
2001
309
2002
Group Life
384
2003
466
2004
2005
2006
Individual Life Regular Premium
Annual Report 2006
15
USA of top financial advisers from the world over),

the highest for any life insurance company in Pakistan.
Your Company intends to continue its focus on
increasing the size of its sales force and open more
branches to further increase its market penetration.
The strength of its dedicated sales force combined
with developments made in the bancassurance
distribution channel will enable EFU Life to garner
greater volumes of business during 2007 and beyond.
We strive to deliver better value to customers by
designing competitive products, providing our clients
excellent service, using innovative technology and
controlling costs. All these measures have borne fruit
and this is indicated in the growth of our renewal
premium and sound business persistency.
For Group Benefits business, EFU Lifes strategy of
targeting traditional employer-employee groups
and diversifying into bank-customers groups has
resulted in a growth of 31% with gross premium
income of Rs 927 million in 2006 (2005: Rs 708
million). The profitability of this line of business
indicates EFU Lifes sound pricing and underwriting
methodology in a competitive market.
The policyholders' fund (statutory funds) of the
Company stood at Rs. 6.07 billion at the end of
2006 compared to Rs. 4.8 billion (Restated) at the end
of 2005.
During the year 2006 the Company incurred death
and disability claims of Rs. 503 million with individual
and group life claims amounting to Rs. 113 million
and Rs. 390 million, respectively.
As mentioned earlier, EFU Life as part of its strategy
makes extensive use of technology to gain competitive
advantage and provide better value to all its
stakeholders. In 2006, EFU Life became the first life
insurance company in Pakistan to launch a toll-free
call center. This call center uses state of the art
technology to provide clients ready access to their
policies information and EFU Lifes client servicing
staff. A mobile phone application software was
developed in-house and launched in 2006 for the
sales force which enables them access to vital business
information through their mobile phones by means
of an automated short messaging service and GPRS
facilities. This facility is in addition to the internetbased connectivity to EFU Lifes policy servicing system
16
Annual Report 2006
which is provided to all branches and bancassurance

partners. EFU Life also initiated discussions on acquiring
a client relationship management system for its sales
force to be provided on their computer laptops.
Improvements were also made in other policy
administration processes to reduce turnaround times
and provide better service to clients while also achieving
cost efficiencies.
Focusing on the needs of its clients, EFU Life continued
to design and launch new products during the year.
One of the major product launches during 2006 was
a flexible unit-linked whole of life product branded
Prosperity for Life which is targeted towards meeting
the evolving financial needs of a family, be it financial
protection on premature death, childrens education
or marriage, retirement income, or saving for any
other future financial objective.
Building on our past successes and optimizing our
internal strengths, we intend to fully exploit the
tremendous opportunities that lie in Pakistans life
insurance sector. Considering that Pakistan has one
of the lowest life insurance penetrations in the world,
we feel there is a huge market that remains to be
tapped. The growth in Pakistans economy and the
demographic structure of its population are also fuelling
demand for life insurance products. Meeting this
GROSS DEATH AND DISABILITY CLAIMS
503
(Rupees in Million)
113
357
335
53
288
76
52
390
188
159
26
26
282
236
280
162
133
2001
2002
2003
Group Life
2004
2005
2006
Individual Life
demand is only possible through increasing the size

and breadth of our distribution. We are focused on
this and are continuously putting in place measures
to increase the size and productivity of our direct sales
force and at the same time forging bancassurance
partnerships.
Your Companys Auditors in their report have
commented that International Accounting Standards
require valuation of investments in an associated
company using the equity method. These investments
have been accounted for in our financial statements
using market value in case of investment-linked
business, and lower of cost or market value in case
of other businesses. Your company has followed this
practice for the following reasons: for unit-linked
business these investments have been accounted for
at market values to bring the basis of valuation for
financial reporting in line with basis of valuation of
units; for other businesses the valuation basis adopted
reflects the specialized nature of taxability of profit of
insurance companies.
Your Companys Profit after tax during the year
amounted to Rs. 236 million.
(000)
Rupees
Rupees
Profit after tax
235 969
Add: Un-appropiated
profit brought forward
Less: Dividend paid for

last year
196 279
432 248
90 000
Transfer to general
reserves for last year
60 000
Un-appropriated profit carried forward
192 000
240 248
Your Directors have pleasure in recommending dividend

of Rs 2 (20%) per share and issuance of 2 bonus
shares for every 3 shares held by the Shareholders of
the Company whose names appear in the Share
Register of the Company at the close of business on
April 16, 2007.
The Company has complied with the requirements of

the Code of Corporate Governance set out by the
Karachi Stock Exchange in its Listing Rules. A statement
to this effect is annexed with the report.
The Directors of your Company were elected for a
period of three years term expiring on June 21, 2008.
The number of meetings attended by each director is
given below:
Sr.
No. Name of Directors
1.
2.
3.
4.
5.
6.
7.
Taher G. Sachak
Ashraf W. Tabani
Jahangir Siddiqui
Rafique R. Bhimjee
Muneer R. Bhimjee
Hasanali Abdullah
Number of Meetings
attended
4 out of 4
4 out of 4
2 out of 4
3 out of 4
4 out of 4
4 out of 4
4 out of 4
Leave of absence was granted to Directors who could

not attend the Board Meetings.
Statement of Ethics and Business Practices:

The Board has adopted the statement of Ethics and
Business Practices. All employees are informed of this
statement and are required to observe these rules of
conduct in relation to business and regulations.
Audit Committee:
The Boards Audit Committee comprises of the
following members:
42 000
Bonus shares issued

for last year
Compliance with Code of Corporate Governance:
1. Saifuddin N. Zoomkawala (Chairman)

2. Rafique R. Bhimjee
3. Hasanali Abdullah
Corporate and Financial Reporting Framework:

a) The financial statements prepared by the
management of the company present fairly its
state of affairs, the result of its operations, cash
flow and changes in equity.
b) Proper books of accounts have been maintained
by the Company.
Annual Report 2006
17
c) Appropriate accounting policies have been

consistently applied in preparation of financial
statements and accounting estimates are based
on reasonable and prudent judgment.
d) The International Accounting Standards, as
applicable in Pakistan, have been followed in
preparation of financial statements and any
departure therefrom has been adequately disclosed.
e) System of internal control is sound in design and
has been effectively implemented and monitored.
f)
There are no significant doubts upon the

Companys ability to continue as a going concern.
g) There has been no material departure from the

best practices of Corporate Governance, as detailed
in the listing regulations.
h) The key operating and financial data for the last
six years is annexed.
i)
The value of investments of provident and pension

funds based on their un-audited accounts as on
December 31, 2006 were the following:
Provident Fund
Pension Fund
Rs.
Rs.
71
20
Million
Million
The value of investments includes accrued interest.

j)
Trading of Shares by Chief Executive, Directors,

Chief Financial Officer, Company Secretary, their
spouses and minor children:
Purchase of Shares
No. of Shares
Mr. Saifuddin N. Zoomkawala

Chairman
1 900
Syed Shahid Abbas

CFO
50
Sale of Shares
NIL
k) The statement of shareholding in the Company

as at 31 December 2006 is included with the
Report.
HASANALI ABDULLAH
Director
RAFIQUE R. BHIMJEE
Director
The Board of Directors recommends the appointment

of M/s Hyder Bhimji & Co. Chartered Accountants
and KPMG Taseer Hadi & Co. Chartered Accountants
as joint auditors of the Company for the year 2007
as suggested by the Audit Committee in place of
retiring auditors M/s Gardezi & Co. and M/s KPMG
Taseer Hadi & Co. The Audit Committees suggestion
is based on receipt of a notice from a shareholder.
The Company continues to receive valuable guidance
from Mr. Michael J de H Bell, an actuary of international
fame who acts as an advisor to the Board. We wish
to record our grateful appreciation for the expert
guidance provided by him to your Company. We
further wish to recognize and place on record our
appreciation of the contribution made by our
Appointed Actuary Mr. Omer Morshed for his
invaluable advice on actuarial, administrative and
marketing policies of the Company.
We would also like to record our appreciation and
gratitude to Munchener Ruckversicherungs Gesellschaft
(Munich Re) of Germany who are your Company's
main reinsurers and who continue to provide full
support to your Company.
Our thanks are also due to E F U General Insurance
Ltd. for their continuous support and guidance, which
has enabled the Company to establish a strong
presence in the market.
The Directors wish to record their appreciation for the
tremendous contribution made by the able and eminent
officers, staff and field force of the Company towards
its development and growth. Their continuous
commitment to high ethical standards, client service
and hard work has helped your Company emerge and
maintain its position as a clear market leader amongst
private sector life insurers.
Finally, we would like to thank our clients for the
confidence expressed in us and also to the Insurance
Division of the Securities and Exchange Commission
of Pakistan for the co-operation extended to us
throughout the year.
TAHER G. SACHAK
Managing Director &
Chief Executive
SAIFUDDIN N. ZOOMKAWALA
Chairman
Karachi March 24, 2007
18
Annual Report 2006
Key Financial Data for The Last Six Years
(Rupees 000)
2006
Gross premium
2005
2004
(Restated)
2003
2002
2001
3 338 078
2 500 098
1 883 699
1 933 189
1 094 827
693 016
3 042 316
2 257 827
1 719 822
1 751 061
918 174
570 318
717 288
469 814
322 895
250 140
156 276
101 230
3 759 604
2 727 641
2 042 717
2 001 201
1 074 450
671 548
758 980
622 169
503 893
334 044
142 341
113 021
1 085 416
803 158
576 579
468 069
356 243
257 372
( 173 411 )
( 13 264 )
14 654
REVENUE ACCOUNT
Premium - net of reinsurance
Interest and other income
Claims less reinsurances

Commission and expenses
(Write back) / provision for
depreciation on investments
Change in the statutory fund
178 962
( 418 769 )
( 4 022 )
1 398 477
1 424 869
751 437
1 254 580
548 760
266 789
Profit before tax
337 769
296 214
214 830
117 919
40 370
19 712
Provision for tax
( 101 800 )
( 100 347 )
( 74 000 )
( 39 500 )
( 15 600 )
( 3 111 )
235 969
195 867
140 830
78 419
24 770
16 601
6 573 206
5 156 704
3 689 747
2 693 147
1 314 267
798 862
Profit after tax
BALANCE SHEET
Investments
Reserve for depreciation on investment
Cash & bank balances
Preliminary & other deferred costs
683 275
455 453
382 418
317 970
( 12 741 )
( 26 006 )
162 413
114 714
35 801
Other assets
204 855
138 289
112 327
348 734
220 311
171 866
Fixed assets
238 892
217 928
74 569
54 715
54 372
50 716
7 700 228
5 968 374
4 259 061
3 414 566
1 738 622
1 145 953
Issued, subscribed and paid-up capital
300 000
210 000
165 000
150 000
150 000
150 000
Accumulated surplus / (loss)
240 248
196 279
150 162
39 332
46
General reserve
190 000
130 000
50 000
50 000
6 314 689
4 916 212
3 491 343
2 739 906
1 338 801
790 041
655 291
515 883
402 556
435 328
249 775
215 636
7 700 228
5 968 374
4 259 061
3 414 566
1 738 622
1 145 953
Balance of statutory fund

Other liabilities
( 9 724 )
Annual Report 2006
19
Statement of Compliance with the Code of Corporate Governance
This statement is being presented to comply with the Code of Corporate Governance contained in the listing regulations
of Karachi Stock Exchange for the purpose of establishing a framework of good governance, whereby a listed company
is managed in compliance with the best practices of corporate governance.
The Company has applied the principles contained in the Code in the following manner:
1.
The Company encourages representation of non-executive Directors on its Board. At present the Board includes
six independent non-executive Directors, who were elected on 11 June 2005 for the three years term effective
22 June 2005.
2.
The Directors have confirmed that none of them is serving as a Director in more than ten listed companies.
3.
All the resident Directors of the Company are registered as taxpayers and none of them has defaulted in payment
of any loan to a banking company, a DFI or an NBFI or, being a member of a stock exchange, has been declared
as a defaulter by that stock exchange.
4.
No casual vacancy occurred in the Board during the year.
5.
The Company has prepared a Statement of Ethics and Business Practices, which has been signed by all the
Directors and employees of the Company.
6.
The Board has developed a vision / mission statement, overall corporate strategy and significant policies of the
Company. A complete record of particulars of significant policies along with the dates on which they were
approved or amended has been maintained.
7.
All the powers of the Board have been duly exercised and decisions on material transactions have been taken
by the Board including appointment and determination of remuneration and terms and conditions of employment
of CEO have been taken by the Board.
8.
The meetings of the Board were presided over by the Chairman and the Board met at least once in every quarter.
Written notices of the Board meetings, along with agenda and working papers, were circulated at least seven
days before the meetings. The minutes of the meetings were appropriately recorded and circulated.
9.
The management of the Company has submitted a paper to the Board of Directors on October 28, 2006 to
consider it as an orientation course for its Directors and to apprise them of their duties and responsibilities.
10. During the year there was no new appointment of Internal Auditor, CFO and Company Secretary.
11. The Directors report for this year has been prepared in compliance with the requirements of the Code and fully
describes the salient matters required to be disclosed.
12. The financial statements of the Company were duly endorsed by CEO and CFO before approval of the Board.
13. The Directors, CEO and executives do not hold any interest in the shares of the Company other than that disclosed
in the pattern of shareholding.
14. The Company has complied with all the corporate and financial reporting requirements of the Code.
15. The Board has formed an Audit Committee. It comprises of three non-executive Directors including the Chairman
of the Committee.
16. The meetings of the Audit Committee were held at least once every quarter prior to approval of interim and final
results of the Company and as required by the Code. The terms of reference of the committee have been formed
and advised to the committee for compliance.
Annual Report 2006
20
17. The Company has established an internal audit department and taking steps to further strengthening it.
18. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating under the
quality control review programme of the Institute of Chartered Accountants of Pakistan, that they or any of the
partners of the firm, their spouses and minor children do not hold shares of the Company and that the firm and
all its partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics
as adopted by Institute of Chartered Accountants of Pakistan.
19. The statutory auditors or the persons associated with them have not been appointed to provide other services
except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC
guidelines in this regard.
20. We confirm that all other material principles contained in the Code have been complied with.
HASANALI ABDULLAH
Director
RAFIQUE R. BHIMJEE
Director
TAHER G. SACHAK
Managing Director &
Chief Executive
Chairman
Annual Report 2006
21
Review Report to the Members on Statement of Compliance

with Best Practices of Code of Corporate Governance
We have reviewed the Statement of Compliance with the best practices contained in the Code of Corporate Governance
prepared by the Board of Directors of EFU Life Assurance Limited (the Company) to comply with the listing regulation
No. 37 of the Karachi Stock Exchange and Code of Corporate Governance applicable to listed insurance companies,
issued by the Securities and Exchange Commission of Pakistan.
The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors of the
Company. Our responsibility is to review, to the extent where such compliance can be objectively verified, whether the
Statement of Compliance reflects the status of the Companys compliance with the provisions of the Code of Corporate
Governance and report if it does not. A review is limited primarily to inquiries of the Companys personnel and review
of various documents prepared by the Company to comply with the Code.
As part of our audit of financial statements we are required to obtain an understanding of the accounting and internal
control systems sufficient to plan the audit and develop an effective audit approach. We have not carried out any special
review of the internal control system to enable us to express an opinion as to whether the Boards statement on internal
control covers all controls and the effectiveness of such internal controls.
Based on our review nothing has come to our attention, which causes us to believe that the Statement of Compliance
does not appropriately reflect the Companys compliance, in all material respects, with the best practices contained in
the Code of Corporate Governance.
GARDEZI & CO.

Chartered Accountants
KPMG TASEER HADI & CO.

Annual Report 2006
22
Auditors Report to the Members
We have audited the annexed financial statements comprising:

(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
balance sheet;
profit and loss account;
statement of changes in equity;
cash flow statement;
revenue account;
statement of premiums;
statement of claims;
statement of expenses; and
statement of investment income
of EFU Life Assurance Limited (the Company) as at 31 December 2006 together with the notes forming part thereof, for the year then
ended.
It is the responsibility of the Companys Board of Directors to establish and maintain a system of internal control, and prepare and present
the financial statements in conformity with the Approved Accounting Standards as applicable in Pakistan and the requirements of the
Insurance Ordinance, 2000 (XXXIX of 2000) and the Companies Ordinance, 1984 (XLVII of 1984). Our responsibility is to express an
opinion on these statements based on our audit.
We conducted our audit in accordance with the Auditing Standards as applicable in Pakistan. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting policies used and significant estimates made by management, as well as, evaluating the overall financial statements
presentation. We believe that our audit provides a reasonable basis for our opinion.
As more fully explained in note 4.3 to the financial statements, the Companys investments in an associated company have been accounted
for using market value in case of unit linked business and lower of cost or market value in case of other businesses. International Accounting
Standards require that such investments be valued using equity method. Had the equity method been used for valuation, the value of
investments and policyholders liabilities as at 31 December 2006 would been lower by Rs 16.2 million (2005: higher by Rs 22.9 million)
and Rs 40.4 million (2005: higher by 7.5 million) respectively and profit for the year would have been higher by Rs. 8.688 million.
In our opinion:
a)
proper books of account have been kept by the Company as required by the Insurance Ordinance, 2000 and the Companies
Ordinance, 1984;
b)
except for the effect of the matter relating to accounting for investment in associates referred to above, the financial statements
together with the notes thereon have been drawn up in conformity with the Insurance Ordinance, 2000 and the Companies
Ordinance, 1984, and accurately reflect the books and records of the Company and are further in accordance with accounting
policies consistently applied except for change specified in note 4.2 to the financial statements with which we concur;
c)
except for the effect of the matter relating to accounting for investment in associates referred to above, the financial statements
together with the notes thereon present fairly, in all material respects, the state of the Companys affairs as at 31 December 2006
and of the profit, its cash flows and changes in equity for the year then ended in accordance with Approved Accounting Standards
as applicable in Pakistan, and give the information required to be disclosed by the Insurance Ordinance, 2000 and the Companies
Ordinance, 1984;
d)
the apportionment of assets, liabilities, revenue and expenses between two or more funds has been performed in accordance with
the advice of the appointed actuary; and
e)
Zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the Company and deposited
in the Central Zakat Fund established under Section 7 of that Ordinance.
GARDEZI & CO.

KPMG TASEER HADI & CO.

Annual Report 2006
23
Balance Sheet As At 31 December 2006
(Rupees 000)
Note
Shareholders
Fund
Statutory Funds
Investment
Pension
Linked Conventional Business
Business
Business (Unit Linked)
Accident &
Health
Business
Aggregate Aggregate
2006
2005
(Restated)
Share capital and reserves

Authorised share capital
Issued, subscribed and paid up
share capital
Accumulated surplus
500 000
500 000
500 000
300 000
300 000
210 000
240 248
240 248
196 279
General reserve
190 000
190 000
130 000
Net shareholders' equity
730 248
730 248
536 279
6 314 689
4 916 212
2 147
1 347
Balance of statutory fund

[including policyholders'
liabilities Rs. 6 080 million
(2005: Rs. 4 804 million
as restated)]
Deferred taxation
2 147
6 123 733
171 831
13 969
5 156
Creditors and accruals

Outstanding claims
99 120
145 014
3 362
247 496
180 033
Premiums received in advance
132 592
34 037
560
1 043
168 232
138 490
Amounts due to reinsurers
404
21 672
306
22 382
40 171
Amounts due to agents
71 379
4 960
58
151
76 548
56 290
300
48 212
3 980
10
230
52 732
25 459
Accrued expenses
Taxation - provision less
payments
Unclaimed dividend
5 537
5 537
58 831
392
392
256
79 825
15 006
Other creditors and accruals
29 657
50 087
77
Total liabilities
35 886
401 794
209 740
934
4 790
653 144
514 536
768 281
6 525 527
381 571
14 903
9 946
7 700 228
5 968 374
Total equity and liabilities
Contingencies and commitments
The annexed notes 1 to 23 form an integral part of these financial statements.
Annual Report 2006
24
(Rupees 000)
Note Shareholders
Fund
Cash and bank deposits

Cash and stamps
Current and other accounts
Deposits maturing within 12 months
Loans - secured
To employees
Statutory Funds
Investment
Pension
Accident &
Linked
Conventional Business
Health
Business
Business (Unit Linked) Business
Aggregate
2006
Aggregate
2005
22 046
226
412 912
150 000
65 059
30 000
91
2 941
226
503 049
180 000
632
260 821
194 000
22 046
563 138
95 059
91
2 941
683 275
455 453
15 847
11 775
5 007
6 037
3 293
14 337
2 532 169
1 504 344
2 536 185
508
6 573 206
2 565 817
425 410
2 164 969
508
5 156 704
519
2
20 912
12 909
471
23 743
2 030
596
15 847
Investments
Government securities
Other fixed income securities
Listed equities and mutual funds
Unlisted equities
9
10
11
149 981
24 995
147 373
508
322 857
2 198 754
1 438 830
2 314 122
5 951 706
175 026
28 784
65 024
268 834
3 401
5 698
6 373
15 472
1 160
260
20 912
11 230
208
7 049
2 224
551
( 25 184 )
688
17 678
237
6
1
( 907 )
2
( 660 )
361
129
32
( 8 415 )
40
( 7 332 )
96 242
32 951
7 257
18 266
189 008
3 879
53 572
17 821
4 911
19 962
126 514
Current assets - others

Premiums due but unpaid
Amounts due from reinsurers
Agent balances
Investment income due but
outstanding
Investment income accrued
Advances and deposits
Prepayments
Inter-fund balances
Sundry receivables
5 699
3 648
150 096
9 196
168 639
Fixed assets - tangible

Leased hold land
Furniture, fixtures, office
equipment and vehicles
12
Total assets
82 896
26 944
6 673
( 115 590 )
8 340
10 683
126 505
126 505
126 030
112 387
238 892
112 387
238 892
91 898
217 928
7 700 228
5 968 374
768 281
6 525 527
381 571
14 903
9 946
HASANALI ABDULLAH
Director
RAFIQUE R. BHIMJEE
Director
TAHER G. SACHAK
Managing Director &
Chief Executive
Chairman
Annual Report 2006
25
Profit and Loss Account Financial Year Ended 31 December 2006
(Rupees 000)
Note
2006
2005
13 672
6 930
Return on other fixed income securities and deposits
3 359
1 331
Amortisation of premium relative to par
( 856 )
( 689 )
Investment income not attributable to statutory funds

Return on government securities
Dividend income
19 318
15 611
35 493
23 183
Gain / (Loss) on disposal of investments
32 894
( 42 )
Net investment income
68 387
23 141
- Gain on disposal of fixed assets
1 580
1 910
- Others
2 794
1 640
4 374
3 550
72 761
26 691
2 459
6 768
70 302
19 923
267 467
276 291
337 769
296 214
( 101 000 )
( 100 000 )
( 800 )
( 347 )
( 101 800 )
( 100 347 )
235 969
195 867
Other revenue
Less: expenses not attributable to statutory funds

Surplus transferred from statutory funds
Profit before tax

Taxation
- Current
- Deferred
8.3
Profit after tax
(Rupees)
Earnings per share - basic and diluted
18
7.87
6.53
HASANALI ABDULLAH
Director
Annual Report 2006
26
RAFIQUE R. BHIMJEE
Director
TAHER G. SACHAK
Managing Director &
Chief Executive
Chairman
Statement of Changes in Equity Financial Year Ended 31 December 2006
(Rupees 000)
Balance as at 1 January 2005

Dividend for the year 2004
Shares
Capital
General
Reserve
165 000
50 000
Issue of bonus shares
45 000
Transfer to general reserve
Profit for the year 2005
Balance as at 31 December 2005
210 000
Dividend for the year 2005

Issue of bonus shares
Transfer to general reserve
Profit for the year 2006
Balance as at 31 December 2006
300 000
365 162
( 24 750 )
( 24 750 )
( 45 000 )
( 80 000 )
195 867
195 867
196 279
536 279
( 42 000 )
( 42 000 )
( 90 000 )
( 60 000 )
235 969
235 969
240 248
730 248
130 000
90 000
Total
150 162
80 000
Accumulated
Surplus
60 000
190 000
HASANALI ABDULLAH
Director
RAFIQUE R. BHIMJEE
Director
TAHER G. SACHAK
Managing Director &
Chief Executive
Chairman
Annual Report 2006
27
Statement of Cash Flows Financial Year Ended 31 December 2006
(Rupees 000)
Statutory Funds
Investment
Shareholders
Linked
Fund
Business
Pension Accident &

Conventional
Business
Health
Business
(Unit Linked) Business
Aggregate
2006
Aggregate
2005
(Restated)
Operating Cash Flows

a) Underwriting activities
Premiums received
Reinsurance premiums paid
Claims paid
Surrenders paid
Commissions paid
2 411 407
( 46 552 )
( 59 965 )
( 378 016 )
( 441 545 )
945 507
( 74 043 )
( 438 577 )
( 224 927 )
8 383
5
( 6 118 )
( 605 )
5 354
1 001
( 1 301 )
( 1 223 )
3 370 651
( 119 589 )
( 499 843 )
( 384 134 )
( 668 300 )
2 538 621
( 92 499 )
( 350 437 )
( 351 573 )
( 476 177 )
1 485 329
207 960
1 665
3 831
1 698 785
1 267 935
( 154 294 )
( 4 819 )
( 7 113 )
18 735
( 10 725 )
6 653
( 7 908 )
( 298 243 )
( 59 594 )
( 41 415 )
( 1 074 )
( 648 )
( 502 )
( 12 )
4 771
( 90 )
( 154 294 )
( 364 232 )
( 49 188 )
114 007
( 10 725 )
6 653
( 15 780 )
( 86 506 )
( 301 740 )
( 60 486 )
45 114
( 11 832 )
6 030
( 9 273 )
Net cash flow from other operating activities
( 159 471 )
( 214 777 )
4 167
( 473 559 )
( 418 693 )
Total cash flow from all operating activities
( 159 471 )
1 270 552
106 037
7 998
1 225 226
Profit / return received

Dividends received
Payments for investments
Proceeds from disposal of investments
Fixed capital expenditure
Proceeds from disposal of fixed assets
17 752
18 661
( 111 830 )
54 673
( 43 478 )
6 485
329 190
194 216
( 1 529 113 )
150 904
24 970
2 035
( 100 556 )
32 760
712
535
( 2 491 )
782
1 134
( 4 706 )
1 825
373 758
215 447
( 1 748 696 )
240 944
( 43 478 )
6 485
288 251
130 011
( 1 338 420 )
326 940
( 163 366 )
5 033
Total cash flow from investing activities
( 57 737 )
( 854 803 )
( 40 791 )
( 462 )
( 1 747 )
( 955 540 )
( 751 551 )
276 291
( 41 864 )
( 150 644 )
( 119 787 )
( 1 092 )
( 4 768 )
( 41 864 )
( 24 656 )
234 427
( 150 644 )
( 119 787 )
( 1 092 )
( 4 768 )
( 41 864 )
( 24 656 )
Net cash flow from underwriting activities

b) Other operating activities
Income tax paid
General management expenses paid
Other operating payments
Other operating receipts
Loans advanced
Loan repayments received
Other payments on operating assets
90 501
( 7 035 )
( 914 )
( 101 923 )
167
( 1 555 )
110
849 242
Investment activities
Financing activities
Surplus appropriated to shareholders' fund
Dividends paid
Total cash flow from financing activities
Net cash inflow/(outflow) from all activities
Cash at beginning of the year
Cash at end of the year
17 219
265 105
( 54 541 )
( 1 444 )
1 483
227 822
73 035
4 827
298 033
149 600
1 535
1 458
455 453
382 418
22 046
563 138
95 059
91
2 941
683 275
455 453
Reconciliation to profit and loss account

Operating cash flows
Depreciation expense
Profit on disposal of fixed assets
Other income
Investment income
(Depreciation) / appreciation in market value of investments
Profit on sale of investments
Increase / (decrease) in assets other than cash
(Increase) / decrease in liabilities other than running finance
1 225 226
( 17 609 )
1 580
2 794
625 202
( 206 228 )
114 978
27 775
( 1 537 749 )
235 969
Profit or loss after taxation
849 242
( 16 884 )
1 910
1 640
429 557
400 019
55 457
13 028
( 1 538 102 )
195 867
HASANALI ABDULLAH
Director
Annual Report 2006
28
RAFIQUE R. BHIMJEE
Director
TAHER G. SACHAK
Managing Director &
Chief Executive
Chairman
Revenue Account Financial Year Ended 31 December 2006
(Rupees 000)
Note
Statutory Funds
Investment
Pension
Linked
Conventional
Business
Business
Business
(Unit Linked)
Accident &
Health
Business
Aggregate Aggregate
2006
2005
(Restated)
Income
Premiums less reinsurances
2 277 908
429 760
752 345
32 446
7 827
571
4 236
2 788
3 042 316
465 565
2 257 827
861 892
Total net income
2 707 668
784 791
8 398
7 024
3 507 881
3 119 719
424 431
792 723
329 002
287 196
5 968
1 417
( 421 )
1 621
758 980
1 082 957
622 169
796 390
Total claims and expenditure
1 217 154
616 198
7 385
1 200
1 841 937
1 418 559
Excess of income over claims and expenditure
1 490 514
168 593
1 013
5 824
1 665 944
1 701 160
4 639 925
145 454
13 945
5 223
4 804 547
3 452 496
5 892 302
168 241
13 969
5 156
6 079 668
4 804 547
( 1 252 377 )
( 22 787 )
( 24 )
( 1 275 121 )
( 1 352 051 )
238 137
145 806
989
Movement in policyholders' liabilities
1 252 377
22 787
24
Transfer of surplus to shareholders' fund
( 109 831 )
( 150 756 )
( 989 )
Balance of statutory funds at

beginning of the year
4 743 050
153 994
13 945
Balance of statutory funds at end of the year
6 123 733
171 831
Claims and expenditure

Claims net of reinsurance recoveries
Management expenses
Add :policyholders' liabilities at

beginning of the year-as restated
Less : policyholders' liabilities at end
of the year
Surplus before tax
67
5 891
390 823
349 109
1 275 121
1 352 051
( 267 467 )
( 276 291 )
5 223
4 916 212
3 491 343
13 969
5 156
6 314 689
4 916 212
13 969
5 156
6 079 668
4 804 547
235 021
111 665
6 314 689
4 916 212
( 67 )
( 5 891 )
Represented by:
Policyholders' liabilities
5 892 302
168 241
Retained earnings on other

than participating business
231 431
3 590
6 123 733
171 831
Balance of statutory funds
13 969
5 156
HASANALI ABDULLAH
Director
RAFIQUE R. BHIMJEE
Director
TAHER G. SACHAK
Managing Director &
Chief Executive
Chairman
Annual Report 2006
29
Statement of Premiums Financial Year Ended 31 December 2006
(Rupees 000)
Statutory Funds
Investment
Pension
Linked
Conventional
Business
Business
Business
(Unit Linked)
Accident &
Health
Business
Aggregate Aggregate
2006
2005
Gross premiums
Regular premium individual policies*
First year
724 473
Second year renewal

Subsequent year renewal
Single premium individual policies
Group policies without cash values
Total gross premiums
8 808
42
1 633
734 956
565 309
453 170
2 489
2 116
118
457 893
366 143
1 080 651
2 263
5 930
3 525
1 092 369
798 695
126 085
2 384 379
126 085
61 507
926 775
926 775
708 444
940 335
8 088
5 276
3 338 078
2 500 098
Less: Reinsurance premiums ceded

On individual life first year business
26 955
2 851
184
29 990
25 513
On individual life second year business
20 038
1 162
49
30
21 279
11 499
On individual life renewal business
59 478
412
212
826
60 928
47 561
183 565
183 565
157 698
106 471
187 990
261
1 040
295 762
242 271
2 277 908
752 345
7 827
4 236
3 042 316
2 257 827
On group policies
Total reinsurance premium ceded
Net premiums
* Individual policies are those underwritten on an individual basis, and includes joint life policies underwritten as such.
HASANALI ABDULLAH
Director
Annual Report 2006
30
RAFIQUE R. BHIMJEE
Director
TAHER G. SACHAK
Managing Director &
Chief Executive
Chairman
Statement of Claims Financial Year Ended 31 December 2006
(Rupees 000)
Statutory Funds
Investment
Pension
Linked
Conventional
Business
Business
Business
(Unit Linked)
Accident &
Health
Business
Aggregate Aggregate
2006
2005
Gross claims
Claims under individual policies
by death
89 716
6 485
by insured event other than death
16 121
by maturity
by surrender
Total gross individual policy claims
Claims under group policies
by death
by insured event other than death
500
96 701
65 591
10 838
200
( 391 )
15 930
3 086
3 086
9 999
369 657
6 118
375 775
348 286
478 580
6 685
6 118
109
491 492
434 714
370 395
370 395
261 085
19 832
19 832
19 398
experience refund
69 721
69 721
33 626
Total gross group claims
459 948
459 948
314 109
478 580
466 633
6 118
109
951 440
748 823
On individual life first year business
11 890
4 830
( 205 )
16 515
8 629
On individual life second year business
11 102
( 544 )
10 558
2 683
On individual life subsequent

renewal business
20 865
290
350
21 505
18 053
Total gross claims

Less: Reinsurance recoveries
On group claims
On experience refund of premiums
Total reinsurance
Net claims
105 530
105 530
72 151
10 292
26 981
150
929
38 352
25 138
54 149
137 631
150
530
192 460
126 654
424 431
329 002
5 968
( 421 )
758 980
622 169
HASANALI ABDULLAH
Director
RAFIQUE R. BHIMJEE
Director
TAHER G. SACHAK
Managing Director &
Chief Executive
Chairman
Annual Report 2006
31
Statement of Expenses Financial Year Ended 31 December 2006
(Rupees 000)
Note
Statutory Funds
Investment
Pension
Linked
Conventional
Business
Business
Business
(Unit Linked)
Accident &
Health
Business
AggregateAggregate
2006
2005
Acquisition costs
Remuneration to insurance
intermediaries on individual policies:
- commission on first year premiums
- commission on second year premiums
- commission on subsequent
renewal premiums
- commission on single premiums
- override commission
- other benefits to insurance
intermediaries
298 269
49 082
2 795
259
17
164
700
65
301 781
49 570
230 301
42 384
30 677
2 512
82 243
53
586
116
122
65
116
30 911
2 512
83 067
21 225
1 230
68 956
101 697
564 480
7 161
10 854
461
880
21
967
109 340
577 181
93 941
458 037
220 842
220 842
118 957
11 464
232 306
11 464
232 306
10 096
129 053
Remuneration to insurance
intermediaries on group policies:
- commission
- other benefits to insurance
intermediaries
Branch overheads
Other acquisition costs
-Policy stamps
Total acquisition cost
Administration expenses
Salaries and other benefits
Traveling expenses
Actuary's fees
Medical fees
Legal and professional fee
Advertisements and publicity
Computer expenses
Printing and stationery
Depreciation
Rental
Difference in exchange
Other management expenses
Gross management expenses
14
15
85 112
9 004
394
18
94 528
74 044
15 377
664 969
1 000
253 164
1 274
7
992
16 384
920 399
12 096
673 230
62 266
9 522
1 765
8 206
1 930
6 439
3 564
5 697
5 259
4 362
( 893 )
30 627
803 713
19 121
1 131
146
675
159
5 710
314
765
632
1 841
4 929
288 587
13
2
1
114
1
1
1
1
1
1
7
1 417
298
46
8
9
31
17
27
25
21
147
1 621
81 698
10 701
1 920
8 995
2 099
12 181
3 896
6 490
5 917
6 225
( 893 )
35 710
1 095 338
60 973
7 427
1 680
6 412
1 572
3 620
3 608
7 091
5 557
5 291
( 135 )
29 841
806 167
Commission from reinsurers
( 10 990 )
Net management expenses
792 723
( 1 391 )
287 196
1 417
1 621
( 12 381 )
1 082 957
( 9 777 )
796 390
HASANALI ABDULLAH
Director
Annual Report 2006
32
RAFIQUE R. BHIMJEE
Director
TAHER G. SACHAK
Managing Director &
Chief Executive
Chairman
Statement of Investment Income Financial Year Ended 31 December 2006
(Rupees 000)
Statutory Funds
Investment
Pension
Linked
Conventional
Business
Business
Business
(Unit Linked)
Accident &
Health
Business
Aggregate Aggregate
2006
2005
Investment income
On government securities
253 449
20 236
402
914
275 001
263 839
On other fixed income securities

and deposits
107 045
5 839
407
438
113 729
31 463
Dividend income
198 567
2 035
542
201 144
110 383
Amortisation of premium
relative to par
( 21 264 )
( 5 006 )
( 131 )
( 26 410 )
( 18 061 )
537 797
23 104
1 220
1 343
(9)
563 464
387 624
71 016
9 342
281
1 445
82 084
55 499
Gain on sale of investments

Shares and stocks
(Depreciation) / appreciation
in market value of
( 37 619 )
( 154 )
( 37 773 )
( 102 360 )
( 12 311 )
( 19 )
( 12 330 )
( 9 177 )
Shares and stocks

Less: Investment related expense
( 128 102 )
( 757 )
( 128 859 )
530 306
( 178 032 )
( 930 )
( 178 962 )
418 769
( 1 021 )
( 1 021 )
32 446
571
429 760
2 788
465 565
861 892
HASANALI ABDULLAH
Director
RAFIQUE R. BHIMJEE
Director
TAHER G. SACHAK
Managing Director &
Chief Executive
Chairman
Annual Report 2006
33
Notes to the Financial Statements For The Year Ended 31 December 2006
1.
Status and nature of business

EFU Life Assurance Limited (the Company) was incorporated in Pakistan on 9 August 1992 as a public limited
company under the Companies Ordinance, 1984 and started its operation from 8 November 1992. The shares
of the Company are quoted on Karachi Stock Exchange. The registered office of the Company is located at
Al-Malik Centre, 70 W, F-7/G-7 Jinnah Avenue, Islamabad while principal place of business is located at 37-K,
Block 6, PECHS, Karachi.
The Company is engaged in life insurance business carrying on ordinary life business, pension fund business
and accident and health business and has established following statutory funds, as required by the Insurance
Ordinance, 2000:
- Investment Linked business (includes individual life business)
- Pension business (Investment linked)
- Conventional business (includes group life and individual life businesses)
- Accident and health business
2.
Basis of presentation
2.1
Statement of compliance
These financial statements have been prepared in accordance with the approved accounting standards as applicable
in Pakistan and the requirements of the Companies Ordinance, 1984, the Insurance Ordinance, 2000 and Securities
and Exchange Commission (Insurance) Rules, 2002. Approved accounting standards comprise of such International
Financial Reporting Standards (IFRSs) as notified under the provisions of the Companies Ordinance, 1984. Where
the requirements of the Companies Ordinance, 1984, the Insurance Ordinance, 2000 or directives / rules issued
by the Securities and Exchange Commission of Pakistan (SECP) differ with the requirements of these standards,
the requirements of the Companies Ordinance, 1984, the Insurance Ordinance, 2000 or of the said directives /
rules take precedence.
3.
Basis of measurement
These financial statements have been prepared on the basis of the historical cost convention as modified by
revaluation of certain investments (note 4.3) at fair values and valuation of policyholders' liabilities on the basis
of actuarial valuation.
Use of judgments and estimates
The preparation of financial statements in conformity with approved accounting standards requires management
to make judgments, estimates and assumptions that affects the application of policies and reported amount of
assets and liabilities, income and expenses.
Actual results may differ from these estimates. The estimates and underlying assumption are reviewed on an on
going basis. Revisions to accounting estimates are recognized in the period in which the estimates is revised if
the revision effects only that period, or in the period and future periods if the revision effects both current and
future periods.
Judgments made by management in application of approved accounting standards that have significant effect
on the financial statements and estimates with a material adjustment in the next year are:
a)
Policyholders liabilities
(see note 4.2)
Policyholders liabilities are calculated by the appointed actuary using appropriate discount rate and mortality
assumptions. Actual investment returns and mortality charge is, by its nature, expected be different from estimates.
b)
Claims
(see note 4.5)
Calculation for claims incurred but not reported (IBNR) is made on the assumption that the claim lag pattern will
follow the historical trend experience.
c)
Taxation
(see note 4.8)
Provision for taxation is based on the assumption that tax assessments will be finalized in accordance with the
historical experience of the Company.
Annual Report 2006
34
d)
Held to maturity investments
(see note 4.3, 9 and 10)
Investments are classified as held to maturity based on the assumption that the Company will be able to hold
these investments till their maturity.
Functional currency and presentation currency
These financial statements are presented in Pak Rupees which is the Companys functional currency. All financial
information presented in Pak Rupees has been rounded to the nearest thousand.
4.
Summary of significant accounting policies

The significant accounting policies adopted in preparation of these financial statements are set out below. These
policies have been applied consistently to all years presented except for a change in policy relating to policyholders
liabilities as noted in 4.2 below.
4.1
Statutory funds
The Company maintains statutory funds for all classes of life insurance business. Assets, liabilities, revenues and
expenses are recorded in respective funds, if referable or, on the basis of actuarial advice if not referable. Other
assets, liabilities, revenues and expenses are allocated to shareholders' fund. Policyholders' liabilities have been
included in statutory funds on the basis of the actuarial valuation carried out by the appointed actuary of the
Company on the balance sheet date as required by Section 50 of the Insurance Ordinance, 2000.
4.2
Policyholders liabilities are stated at a value determined by the appointed actuary through an actuarial valuation
carried out as at each balance sheet date. In determining the value both acquired policy values (which forms the
bulk of policyholders liabilities) as well as estimated values which will be payable against risks which the Company
underwrites. The bases used are applied consistently from year to year except as stated hereunder.
The basic liability consists of the estimated actuarial liability against each contract which is in force. To this are
added:
a) The cash value of policies which have lapsed over the last two years and where the liability would be reinstated
in case of the policy being revived; and
b) A reserve for catastrophic losses in excess of those provided for on a policy by policy basis.
At 31 December 2005 the policyholders liabilities included an element of reserve for a potential solvency margin
which has been removed from these financial statements.
The provision for solvency margin had been provided on the understanding that the Securities and Exchange
Commission of Pakistan (SECP) would imminently introduce a solvency margin based on a similar basis as used
in the European Union. The SECP has, however, set up a committee to formulate a suitable basis for provision of
a solvency margin, which indicates that the use of similar basis as used by European Union is not as certain as it
had been in previous years. As a result the appointed actuary no longer considers this provision as necessary. The
effect of this change has been incorporated retrospectively in these financial statements as disclosed in note 7
to the financial statements.
4.3
Investments
Investments which are intended to be held for an undefined period of time but may be sold in response to the
need for liquidity or changes in interest rate are classified as available for sale. Investments acquired principally
for the purpose of generating a profit from short-term fluctuation in price are classified as held for trading.
Investments, with fixed or determinable payments and fixed maturity, where the Company has positive intent and
ability to hold to maturity are classified as held-to-maturity.
All investments are initially recognised at fair value, including the transaction costs except held for trading investments
which are recognised at fair value.
Investments classified as held-to-maturity are subsequently measured at amortised cost, taking into account any
discount or premium on acquisition, using the effective interest rate method. Available for sale investments relating
to the units assigned to policies of investment linked business and pension business and held for trading investments
are subsequently measured at their fair values and the difference taken to respective revenue accounts. Other
Annual Report 2006
35
available for sale investments are subsequently measured at lower of cost (determined on moving weighted average
basis) or market value on an aggregate portfolio basis.
International Accounting Standard IAS39 Financial Instruments Recognition and Measurement has been
revised effective from 1 January 2005. In the revised IAS 39 the option of taking the revaluation gain / loss on
available for sale securities to income / revenue account has been deleted and all such gain / loss is to be taken
to equity. Furthermore, a new category has been added financial assets at fair value through profit and loss.
The Company considers that credit / debit to revenue account for unit linked and pension business is required to
reflect policyholders liabilities at their fair value.
Available for sale investments include investments in an associated company, EFU General Insurance Limited carried
at Rs.192 million. These are being valued either at lower of cost or market value or fair value (for Unit Linked
Business). International Accounting Standard IAS 28 (revised) Investments in Associates effective for financial
periods beginning on or after 1 January 2005 requires that an investment in associate shall be accounted for using
the equity method. The Company considers that accounting for these investments at a value above cost for business
other than unit linked business would result in complications similar to those related to adoption of International
Accounting Standard IAS 39 Financial Instruments Recognition and Measurement. Had the equity method
been used for valuation, the value of investments and policy holders liabilities as at 31 December 2006
would have been lower by Rs. 16.2 million (2005: higher by Rs. 22.9 million) and Rs. 40.4 million (2005: higher
by Rs. 7.5 million) respectively and profit for the year ended 31 December 2006 would have been higher by
Rs. 8.6 million.
4.4
Revenue recognition
First year individual life premiums are recognized once the related policies have been issued and the premiums
received. Renewal premiums are recognized upon receipt provided the policy is still in force. Single premiums are
recognised once the related policies are issued against the receipts of premium.
Group life premiums are recognized when due. A provision for unearned premiums is included in the policyholders
liabilities.
Reinsurance expense is recognized as a liability in accordance with the pattern of recognition of related premium.
Interest income on bank deposits and fixed income securities is recorded on a time proportion basis using effective
interest rate method.
Dividend income is recognized when right to receive such dividend is established.
4.5
Claims
A liability for outstanding claims is recognized in respect of all claims incurred up to the balance sheet date. Claims
where intimation of the event giving rise to the claim is received or in respect of investment linked business when
the policy ceases to participate in the earnings of the statutory fund are reported as claims in the revenue account.
The liability for claims incurred but not reported at the year end is determined by the Appointed Actuary and are
included in the policyholders liabilities. Experience refund of premium calculated by appointed actuary is included
in outstanding claims. Experience refund of premium receivable from reinsurers is included in the reinsurance
recoveries of claim.
Claim recoveries receivable from the reinsurers are recognized at the same time as the claim which give rise to
the right of recovery and are measured at the amount expected to be recovered.
4.6
Acquisition costs
Directly referable commission and other expenses are recognized as cost when the related policies are issued or
renewed. Branch overheads and other acquisition costs are recognized when these are incurred.
4.7
Employees' retirement benefits

The Company operates two defined contribution retirement benefit plans, i.e. an approved funded provident fund
scheme for all permanent employees and an approved funded pension scheme for eligible officers. Monthly
contributions to these funds are made in accordance with their rules. Contributions made to these funds are
recognized as an expense.
Annual Report 2006
36
4.8
Taxation
Income tax expense comprises of current and deferred tax. Income tax expense is recognized in the profit and loss account.
Current
Provision for current taxation is based on taxable income determined under the Fourth Schedule to the Income
Tax Ordnance, 2001. The charge is calculated using tax rates enacted or substantively enacted at the balance sheet
date. The charge for current tax also includes adjustments related to prior years, if any.
Deferred
Deferred tax is accounted for using the balance sheet liability method, providing for all temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement
of the carrying amount of assets and liabilities, using the enacted or substantively enacted rates of taxation.
4.9
Dividends to equity holders

Cash dividends to shareholders is recognized as liability in the period in which it is approved. Similarly all other
appropriations other than those required by law including reserve for issue of bonus shares are recognized in the
period in which they are approved.
4.10
Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and impairment, if any. Depreciation is calculated
on the reducing balance method at the following rates:
Office equipment
Furniture and fixture
Vehicle
Computers
10%
10%
20%
30%
Normal repairs and maintenance are charged to income currently. Major renewals and improvements are capitalized
and assets retired, if any, are derecognized.
Gains or losses on disposal of fixed assets are included in the profit and loss account currently.
Depreciation rates and method are reviewed at each balance sheet date and adjusted, if required.
4.11
Foreign currencies
Transactions in foreign currencies are translated into Pak Rupees at the rates prevailing on the date of transaction.
Monetary assets and liabilities in foreign currencies are translated into Rupee at the rate of exchange prevailing
on the balance sheet date. All exchange differences are taken to revenue / profit and loss account.
4.12
Cash and cash equivalents

For the purpose of cash flow statement, cash and cash equivalents include the following:
Cash at bank in current and saving accounts
Cash and stamps in hand
Term deposits with original maturity within three months
4.13
Impairment
The carrying amount of the Companys assets is reviewed on an ongoing basis to determine whether there is any
indication of impairment. If such an indication exists, the recoverable amount of the assets is determined and
impairment losses, if any, are recognised in the revenue / profit and loss accounts.
4.14
Provisions
Provisions are recognised when the Company has a legal or constructive obligation as a result of a past event,
and it is probable that outflow of resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of obligation.
Annual Report 2006
37
4.15
Off-setting
Assets and liabilities are offset and the net amount is reported in the financial statements only when there is legally
enforceable right to set-off the recognised amount and the Company intends either to settle on a net basis or realise
the assets and settle the liabilities simultaneously.
4.16
Financial assets and liabilities

All financial assets and liabilities are initially measured at fair value plus directly attributable costs. These financial
assets and liabilities are subsequently measured at fair value or amortised cost as the case may be.
5.
(Rupees 000)
Share Capital
2006
2005
(Number of Shares)
5.1
15 000 000
15 000 000
15 000 000
6 000 000
30 000 000
21 000 000
2006
2005
Issued, subscribed and paid up

Ordinary shares of Rs. 10 each issued for cash
150 000
150 000
Ordinary shares of Rs. 10 each issued as

fully paid bonus share
150 000
60 000
300 000
210 000
Dividend and bonus shares

Subsequent to the year end the Board of Directors have proposed the following dividends;
Cash dividend @ Rs. 2 per share amounting to Rs. 60 million
Issue of 2 bonus shares for every 3 shares held amounting to Rs. 200 million
These financial statements do not reflect the above appropriation which will be accounted for in the year of declaration.
6.
(Rupees 000)
6.1
Aggregate
2006
Aggregate
2005
(Restated)
5 954 121
6 037
6 147 151
4 849 671
90
22 945
14 980
Gross of reinsurance
Actuarial liability relating to
future events
Provision for outstanding
reported claims payable
over a period exceeding
twelve months
Provision for incurred but not
reported claims
6.2
Statutory Funds
Investment
Pension
Accident &
Linked
Health
Business
22 855
172 907
14 086
4 482
55 072
59 554
39 907
5 981 458
227 979
14 086
6 127
6 229 650
4 904 558
5 880 753
127 795
13 969
5 084
6 027 601
4 765 092
72
7 995
6 713
44 072
32 742
6 079 668
4 804 547
Net of reinsurance
Actuarial liability relating to
future events
Provision for outstanding
reported claims payable
over a period exceeding
twelve months
7 923
Provision for incurred but not

reported claims
3 626
40 446
5 892 302
168 241
Annual Report 2006
38
13 969
5 156
7.
Movements of statutory funds

(Rupees 000)
Statutory Funds
Investment
Pension
Accident &
Linked
Health
Business
Aggregate
2006
Aggregate
2005
(Restated)
4 907 672
3 482 143
Balance at beginning of the year
as previously reported
Effect of change in accounting
policy (refer note no.4.2)
as restated
Increase during the year
4 639 925
1 252 377
145 454
22 787
13 945
24
5 223
( 67 )
4 804 547
1 275 121
3 452 496
1 352 051
Balance at end of the year
5 892 302
168 241
13 969
5 156
6 079 668
4 804 547
8 540
8 540
9 200
103 125
29 647
4 743 050
145 454
13 945
5 223
( 103 125 )
( 103 125 )
( 29 647 )
Retained earnings on other than

participating business
as previously reported
Effect of change in accounting
policy (ref. note no.4.2)
as restated
Surplus for the year
Surplus appropriated to
shareholders fund
103 125
103 125
238 137
8 540
145 806
989
5 891
111 665
390 823
38 847
349 109
( 109 831 )
( 150 756 )
( 989 )
( 5 891 )
( 267 467 )
( 276 291 )
Balance at end of the year
231 431
3 590
235 021
111 665
Balance of Statutory Funds
6 123 733
171 831
13 969
5 156
6 314 689
4 916 212
7.1 The SECP issued a circular during the year which clarified the interpretation of section 32(2)(g) of the Insurance Ordinance 2000, as a result
of which certain related party investments held in the Investment Linked Statutory Fund of the Company may be treated as inadmissible.
Although the applicability of this for unit linked policies is not yet clear, in accordance with the advice of its appointed actuary, the Company
has retained an amount of Rs. 231.431 million within the Investment Linked Statutory Fund in order to be prudent.
No deferred tax liability has been recognised on the undistributed surplus in view of the fact that surplus has been retained to meet solvency
requirement and is not expected to be available for distribution to shareholders in the foreseeable future.
8.
Taxation
8.1 The income tax returns for the Tax year 2004, 2005 and 2006 have been filed on self assessment basis. Appeals relating to the assessment
years 1994-1995 to 1998-1999 are pending before the High Court of Sindh regarding levy of Turnover Tax. Appeals in respect of assessment
years 1999-2000 and 2000-2001 are pending with the Commissioner of Income Tax (Appeals) and there could arise a potential tax liability
of Rs.1.3 million if the matter is decided against the Company. No provision has been made for the liability as the Company is confident
of a favorable outcome in appeal.
(Rupees 000)
8.2 Deferred taxation

2006
2005
Deferred tax liability arising on taxable temporary difference:

On accelerated tax depreciation
8.3 Reconciliation of tax rate
2 147
1 347
2006
2005
Applicable Tax Rate

Tax effect of amount that are not deductible for tax purposes
Tax effect of amount taxed at reduced rates
Effect of income exempt from tax
35.00
( 1.72 )
( 3.52 )
35.000
0.46
( 1.58 )
Average effective tax rate charged on income
29.76
33.88
Annual Report 2006
39
9.
Investment in government securities
(Rupees 000)
Statutory Funds
Investment
Pension Accident & Aggregate Aggregate
Maturity Effective Shareholders
Linked
Health
2006
2005
Year
Yield %
Fund
Business
(Restated)
Held to maturity
at amortised cost
Treasury Bills
5 Years Pakistan
Investment Bonds
10 Years Defence
Savings Certificates
10 Years Pakistan
Investment Bonds
8 Years WAPDA
Sukuk Certificates
15 Years Pakistan
Investment Bonds
20 Years Pakistan
Investment Bonds
2006
2007-08
5.61-8.97
3 575
25 069
2007-09
18.03
602 851
2011-14 5.79-13.54
55 106
22 956
44 875
130 151
20 574
73 519
74 790
602 851
527 993
5 007
213 220
215 433
2012
9.89
80 000
80 000
2019
7.35
11 300
11 300
2024
9.79-9.80
149 981
54 818
705 694
5 007
175 026
11 365
54 818
54 843
1 035 708
904 998
Available for sale

at market value
Treasury Bills
5 Years WAPDA
Bonds
5 Years Pakistan
Investment Bonds
10 Years Pakistan
Investment Bonds
15 Years Pakistan
Investment Bonds
20 Years Pakistan
Investment Bonds
2006
2008
7.07-9.84
49 920
49 920
51 480
2006-09
6.1-7.5
105 437
587
106 024
106 350
2011-14
5.16-14
909 977
1 039
911 016
889 153
2019
7.1-9.25
125 776
125 776
131 392
2024
7.95-10.25
149 981
301 950
1 493 060
2 198 754
175 026
1 775
3 401
3 401
5 007
167 237
303 725
315 207
1 496 461
2 532 169
1 660 819
2 565 817
9.1 Market value of the government securities carried at amortised cost amounted to Rs.1,023.717 million (2005: Rs.899.345
million).
10. Other fixed income securities
(Rupees 000)
Statutory Funds
Investment
Linked
Health
2006
2005
Year
Yield %
Fund
Business
(Restated)
Held to maturity
at amortised cost
Term Finance Certificates
Bank Alfalah Ltd.
2008
Standard Chartered
Bank Pakistan
Limited 3rd issue
2013
United Bank
Limited 2nd issue
2013
Dominion Fertilizers
2013
Prime Commercial Bank 2013
Soneri Bank Ltd.
2013
Allied Bank Ltd.
2014
Annual Report 2006
40
11.38
12.06
24 995
10.23
12.75
12.07
12.00
12.45
24 995
1 515
1 515
24 995
25 000
2 000
504
2 018
6 037
37 791
16 000
10 584
2 018
10 000
102 903
38 680
63 680
33 007
10 080
43 087
4 784
14 000
10 000
28 784
(Rupees 000)
Statutory Funds
Investment
Linked
Health
2006
2005
Year
Yield %
Fund
Business
(Restated)
Available for sale
at market value
Term Finance Certificates
First Oil & Gas Securitization
Co. Limited
Orix Leasing Pakistan
Limited 2nd issue
Gulistan Textile Limited
Reliance Weaving
Mills Limited
First Dawood Investment
Bank Ltd.
Standard Chartered Bank
Pakistan Limited.
Worldcall Communications
Limited
Hertz Optimus Limited
Bank Alfalah Limited
1st issue
MCB Bank Limited
Pakistan Mobile
Communications
(Private) Limited
Trust Leasing
Corporation Limited
Jahangir Siddiqui &
Co. Limited 1st issue
Pakistan Services Ltd.
Trust Leasing
Corporation Limited
Jahangir Siddiqui &
Co. Limited 2nd issue
Niamat Basal oil and
gas securities
Co. Ltd.
Pakistan Ltd. 2nd Issue
Jahangir Siddiqui &
Co. Limited 4th Issue
Chanda Oil & Gas Sec.
Co. Ltd.
2nd issue
Azgard Nine Limited
3rd issue
United Bank Limited
2nd issue
Askari Commercial Bank
Limited 1st issue
Askari Commercial Bank
Limited 2nd issue
Prime Commercial Bank
Limited
Pakistan Mobile
Communications (Pvt.) Ltd.
Soneri Bank Ltd.
Pakistan Limited.- 3rd Issue
Dominion Fertilizers
United Bank Limited.
3rd Issue
Allied Bank Ltd.
Faysal Bank Ltd. (Pre IPO)
Bank AL Habib Ltd. (Pre IPO)
2006
947
2006
2006
7 437
9 180
2006
569
2007
13.50
5 050
5 050
15 325
2007
7.84
41 992
41 992
31 620
2007
2007
12.25
14.00
304
20 000
304
20 000
612
2008
2008
9.96
10.58
20 098
29 894
23 479
30 705
5 993
30 869
2008
12.88
13 200
13 200
16 500
2008
11.00
13 436
13 436
6 227
2008
2008
7.50
10.87
9 582
7 424
9 582
7 424
11 821
2009
10.00
11 794
11 794
2010
10.66
10 096
10 096
2010
13.05
13 777
13 777
3 381
811
10 200
2011
10.40
22 340
188
22 528
2012
13.06
38 880
38 880
2012
9.40
8 165
8 165
2012
2012
11.91
12.31
34 273
49 225
34 273
49 225
15 069
35 175
2013
11.89
65 635
65 635
18 045
2013
10.23
100 734
100 734
104 019
2013
11.75
33 790
490
34 280
25 120
2013
11.98
50 900
50 900
10 000
2013
12.07
60 552
247
60 799
7 002
2013
2013
12.75
12.00
111 628
100 767
111 628
100 767
2013
2013
12.06
12.75
36 277
159 000
581
36 858
159 000
2014
2014
2014
2015
12.41
12.45
10.59
12.61
24 995
103 430
148 500
25 000
50 000
1 395 743
1 438 830
28 784
5 698
5 698
6 037
103 430
148 500
25 000
50 000
1 401 441
1 504 344
361 730
425 410
10.1 Market Value of other fixed income securities carried at amortised cost amounted to Rs. 101.335 million (2005: Rs. 62.524 million).
Annual Report 2006
41
(Rupees 000)
11. Listed equities and mutual funds
Shareholders
Fund
Statutory Funds
Investment
Linked
Conventional Pension
Business
Business
Business
Accident &
Health
Business
Aggregate
2006
Aggregate
2005
Available for sale -at

market value
Listed equities
Open end mutual funds
1 777 510
124 877
6 373
1 783 883
124 877
1 522 495
130 899
319 230
319 230
274 409
135 925
11 448
49 131
43 374
35 024
30 000
1 009
2 284
221 089
87 106
190 534
46 632
147 373
2 314 122
65 024
6 373
3 293
2 536 185
2 164 969
Held for trading -at

market value
Listed equities
Available for sale -at
lower of cost or
market value
Listed equities
Open end mutual fund
11.1 Market Value of listed equities and mutual funds carried at lower of cost or market value amounted to Rs. 731.907
million (2005: Rs.521.047 million).
11.2 Listed equities include investment in EFU General Insurance Limited and JS Bank Limited at carrying value of Rs. 192.358
million (2005: Rs. 41.930 million) and Rs. 48.506 million (2005: Nil) representing 4.77% (2005: 3.66 %) and 0.98%
(2005: Nil) respectively of the issued capital of these companies.
(Rupees 000)
12. Fixed assets

Cost
Accumulated Depreciation
As at 01
As at 31
January
December
2006
Addition Disposal
2006
Lease hold land
475
Office equipment
14 910
4 068
488
18 490
5 953
1 132
Computers
14 556
2 520
177
16 899
9 927
Furniture & fixture 72 195
13 151
257
85 089
Vehicles
57 073
23 264
8 658
284 764
43 478
9 580
Annual Report 2006
42
126 505
Charge
On
As at 31 Written
for the Disposal December Down
year
2006
Value
126 030
2006
As at 01
January
2006
126 505
231
6 854
11 636
1 882
146
11 663
5 236
31 347
4 890
130
36 107
48 982
71 679
19 609
9 705
4 168
25 146
46 533
318 662
66 836
17 609
4 675
79 770
238 892
(Rupees 000)
Cost
Depreciation
As at 01
As at 31
January
December
2005
Addition Disposal
2005
Lease hold land
126 030
As at 01
January
2005
126 030
Charge
On
As at 31 Written
for the Disposal December Down
year
2005
Value
126 030
Office equipment
12 419
2 859
368
14 910
5 114
995
156
5 953
8 957
Computers
12 346
2 520
310
14 556
8 195
1 984
252
9 927
4 629
Furniture & fixture 62 888
10 237
930
72 195
27 180
4 539
372
31 347
40 848
Vehicles
40 975
21 720
5 622
57 073
13 570
9 366
3 327
19 609
37 464
128 628
163 366
7 230
284 764
54 059
16 884
4 107
66 836
217 928
2005
(Rupees 000)
13. Sale of fixed assets

Original
Cost
Vehicle
78
Vehicle
76
Vehicle
76
Vehicle
20
Vehicle
40
Vehicle
419
Vehicle
378
Vehicle
34
Vehicle
432
Vehicle
337
Vehicle
609
Vehicle
464
Vehicle
609
Vehicle
464
Vehicle
50
Vehicle
647
Vehicle
636
Vehicle
2 286
Vehicle
40
Vehicle
305
Vehicle
604
Vehicle
54
Assets having
WDV less
than Rs 50,000
Computers
177
Furniture & fixture 257
Office equipment 488
Accumulated
Depreciation
Book
Value
Sale
Mode of
Proceeds Disposal
28
27
28
10
14
331
315
12
341
301
360
274
297
167
39
316
229
823
14
110
121
11
50
49
48
10
26
88
63
22
91
36
249
190
312
297
11
331
407
1 463
26
195
483
43
410
400
350
220
200
225
200
150
200
140
325
250
325
300
9
300
300
810
300
325
604
54
146
130
231
31
127
257
22
15
51
2006
9 580
4 675
4 905
6 485
2005
7 230
4 107
3 123
5 033
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Insurance Claim
Insurance Claim
Insurance Claim
Insurance Claim
Sold to
M. Uzair,
Imran,
M. Uzair,
Masood Sheeraz,
Mohd. Aqeel Sanji,
Taskeen Raza Khan,
Rizwan Ali,
S. Mohd Athar,
Hassan Ali,
M. Faisal,
S. Ali Raza Zaidi,
Shoukat Ali,
Muhd. Ihsan Haq,
Imran Khan,
Shakeel Ahmed,
Mazhar Hussain,
Sardar Zakaullah,
Sibtain Ali Bhai,
EFU Gen. Ins. Ltd.
EFU Gen. Ins. Ltd.
EFU Gen. Ins. Ltd.
EFU Gen. Ins. Ltd.
Karachi
Karachi
Karachi
Employee
Karachi
Employee
Karachi
Employee
Employee
Employee
Employee
Employee
Employee
Karachi
Employee
Karachi
Employee
Karachi
Various
Various
Various
Annual Report 2006
43
(Rupees 000)
14. Branch overheads

Statutory Funds
Investment
Pension
Accident &
Linked
Health
Business
Insurance premium
1 416
394
Printing and stationery
2 802
250
14
Advertisement and publicity
2 073
608
10
Postage
1 900
187
28 954
1 516
125
Telephone and electricity
14 775
2 157
70
Rent, Rates and taxes
11 710
967
56
Travelling costs
Aggregate
2006
Aggregate
2005
1 817
1 641
3 067
2 260
2 691
152
2 096
1 621
30 601
21 447
17 005
15 929
12 735
9 968
Conveyance
2 113
227
10
2 351
1 753
Repair and maintenance
2 174
187
11
2 373
1 547
Entertainment
6 514
639
31
7 186
5 686
824
86
914
713
Other expenses
Depreciation
9 857
1 786
47
11 692
11 327
85 112
9 004
394
18
94 528
74 044
(Rupees 000)
15. Other management expenses

Statutory Funds
Investment
Pension
Accident &
Linked
Health
Business
Insurance premium
1 719
234
Aggregate
2006
Aggregate
2005
1 962
1 673
Postage
5 684
922
27
6 634
4 838
Telephone and electricity
4 143
1 049
20
5 213
5 069
1 973
2 603
15
3 648
3 645
Repair and maintenance
1 584
381
Entertainment
3 090
542
Fees and subscription
3 846
829
18
4 694
3 470
Bank charges
2 279
188
11
2 479
2 397
Other expenses
7 087
686
34
7 808
5 347
Claim investigation fees
1 195
98
1 299
799
30 627
4 929
147
35 710
29 841
Annual Report 2006
44
16. Remuneration of Chief Executive and Executives

The aggregate amount charged in the financial statements for remuneration, including all benefits, to the Chief Executive
and Executives of the Company are as follows:
(Rupees '000)
2006
Chief
Executive
Managerial remuneration (including bonus)
2005
Executives
Chief
Executive
Executives
7 654
17 952
6 339
9 152
Utilities
155
89
172
25
Medical expenses
211
288
102
142
Leave passage
331
19
Number of persons
8 020
18 329
6 944
9 338
In addition, the Chief Executive and executives are provided with free use of Company cars and certain items of household
furniture in accordance with their entitlement. The Chief Executive is provided with maintained and furnished
accommodation.
(Rupees 000)
17. Auditors' remuneration

2006
2005
Audit fee annual (KPMG Taseer Hadi & Co.)
150
150
Audit fee annual (Gardezi & Co.)
150
150
Limited scope review (KPMG Taseer Hadi & Co.)
85
75
Limited scope review (Gardezi & Co.)
85
75
Out of pocket expenses (KPMG Taseer Hadi & Co.)
93
47
257
275
820
772
Tax advisory services & other certifications (KPMG Taseer Hadi & Co.)
18. Basic and diluted earnings per share

Profit for the year
(Rupees 000)
235 969
195 867
(Numbers in 000)
Weighted average number of ordinary shares
30 000
30 000
(Rupees)
Earning per share - basic & diluted
7.87
6.53
19. Number of employees

Number of employees as at 31 December 2006 are 478 (2005:459)
Annual Report 2006
45
20. Financial instruments and related disclosures

20.1 Liquidity risk
Liquidity risk is the risk that the Company will be unable to meet its funding requirements. To guard against this risk,
assets are managed with liquidity in mind maintaining a healthy balance of cash and cash equivalents and readily
marketable securities. The maturity profile is monitored to ensure adequate liquidity is maintained.
20.2 Mark-up rate risk exposure
The Company's exposure to the mark-up rate risk, based on the earlier of contractual repricing or maturity date as at
31 December 2006 is as follows:
2006
(Rupees '000)
Exposed to yield / interest rate risk

Total
Upto 1
month
Over 1 to 3 Over 3 to 6
months
months
Over 6
month
to 1
year
Over 1
to 2
years
Over 2
to 3
years
Over 3
to 5
years
Over 5
to 10
years
Above Non-interest
10 years
bearing
financial
instruments
On balance sheet financial instruments

Assets
Cash and stamps
226
226
120 066
Current and other accounts
503 049
382 983
Deposits
180 000
70 000
110 000
15 847
465
854
1 145
1 754
2 977
2 543
1 465
1 963
2 681
6 573 206
164 434
429 804
354 918 1 371 358 1 050 314
495 613
Loans
Investments
48 253
54 705
67 114
Premium due but unpaid
20 912
20 912
Amount due from reinsurer
12 909
12 909
Agent balances
2 536 693
471
471
Investment income accrued
96 242
96 242
Other receivable
51 217
2 087
1 781
2 386
2 784
2 880
166
39 133
7 454 079
503 788
167 340
70 645
168 972
435 661
Liability
Outstanding claims
Premium received in advance
357 627 1 372 823 1 052 277
498 294
2 826 652
247 496
247 496
168 232
168 232
Amount due to reinsurer
22 382
22 382
Amount due to agent
76 548
76 548
other creditors
On Balance sheet gap
132 949
132 949
647 607
647 607
6 806 472
503 788
167 340
70 645
168 972
435 661
357 627 1 372 823 1 052 277
498 294
2 179 045
20.3 The effective interest rates range for the financial assets is as follows:
2006
Current and Other Accounts
Deposit
Loans
Investments
Advances and other receivables
Annual Report 2006
46
4% to 9%
2005
2% to 4.5%
10% to 11.5%
7% to 9%
9% to 11%
5% to 10%
5.2% to 18%
5% to 18%
6% to 11%
5% to 7%
20.4 Market risk

Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices,
whether those changes are caused by factors specific to the individual security, or its issuer, or factors affecting all
securities traded in the market.
The Company is exposed to market risk with respect to its investments.
The Company limits market risk by maintaining a diversified portfolio and by continuously monitoring developments
in government securities, equity and term finance certificates (TFCs) markets. In addition, the Company actively monitors
the key factors that affect the value of these securities.
20.5 Credit Risk and Concentration of Credit Risk
Credit risk is the risk, which arises with the possibility that one party to a financial instrument will fail to discharge its
obligation and cause the other party to incur a financial loss.
Concentration of credit risk arises when a number of counterparties have a similar type of business activities. As a
result, any change in economic, political or other conditions would effect their ability to meet contractual obligations.
The Company is exposed to credit risk on premiums receivable from group clients, commission and claims recoverable
from insurers and investment in term finance certificates. The management monitors exposure to credit risk through
regular review of credit exposure, assessing credit worthiness of counter parties and prudent estimates of provision
for doubtful debts.
Due to the nature of financial assets, the Company believes it is not exposed to any major concentration of credit risk.
20.6 Reinsurance Risk
Reinsurance ceded do not relieve the Company from its obligations to policyholders and as a result the company
remains liable for the portion of outstanding claims reinsured to the extent that reinsurer fails to meet the obligations
under the reinsurance agreements.
In order to minimize the financial exposure arising from large claims the Company obtains reinsurance cover only from
companies with sound financial health.
20.7 Fair value
The fair values of all major financial assets are estimated to be not significantly different from their carrying values
except for the following:
(Rupees '000)
Carrying
Value
Listed equities and mutual funds
Unlisted securities
21.
432 860
102 903
308 189
508
Fair
Value
420 865
101 335
731 907
2 608
Related party transactions

The related parties comprise of directors, key management personnel, associated understandings, entities with common
directors and employees funds.
(Rupees '000)
Associated companies
Transactions
Premium written
Premium paid
Claims paid
Claims received
Traveling expenses
Commission paid
2006
2005
6 365
6 207
2 904
1 495
190
3
9 779
4 391
1 830
716
366
21
Annual Report 2006
47
(Rupees '000)
Dividend paid
Dividend received
Balances
Balance payable
Balance receivable
Employees funds
Transactions
Contribution to provident fund
Contribution to pension fund
Balances
Contribution to provident fund
Contribution to pension fund
Key Management Personnel
Transactions
Loan to employees
Loan recovered
Compensation
Balances
Loan receivable
2006
2005
16 387
3 293
9 657
2 305
23
17
1 220
19
4 586
3 188
3 795
2 591
1 392
699
26 348
36
23 800
1 583
890
22. Standards, interpretations and amendments to published approved accounting standards that are not yet effective
The following standards, amendments and interpretations of approved accounting standards, with effective
dates mentioned against each, are either not relevant to the Company's operations or are not expected to have significant
effect on the Company's financial statements other than increased disclosures in certain cases:
IAS- 1 Presentation of Financial Statements amendments relating to capital disclosures
IFRS- 2 Share Based Payments
IFRS- 3 Business Combinations
IFRS- 5 Non-current Assets Held for Sale
and Discontinued Operations
IFRS- 6 Exploration for and Evaluation of
Mineral Resources
IFRIC- 8 Scope of IFRS 2 Share Based Payments
IFRIC 9 - Reassessment of embedded Derivatives
IFRIC- 10 Interim Financial Reporting and Impairment
IFRIC- 11 Group and Treasury Share Transactions
IFRIC- 12 Services Concession Arrangements
effective from accounting period beginning on

or after 1 January 2007
effective for accounting period beginning on
or after 1 May 2006
or after 1 June 2006
or after 1 November 2006
or after 1 March 2007
23. DATE OF AUTHORISATION FOR ISSUE

These financial statements were authorized for issue by the Board of Directors in their meeting held on 24 March 2007.
HASANALI ABDULLAH
Director
Annual Report 2006
48
RAFIQUE R. BHIMJEE
Director
TAHER G. SACHAK
Managing Director &
Chief Executive
Chairman
Statements under Section 52(2) of Insurance Ordinance 2000
Statement by Appointed Actuary

I have reviewed the Balance Sheet and Revenue Account and related notes prepared by the Company for the year ending
31 December 2006. In my opinion:
(a) the policyholder liability included in the balance sheet has been determined in accordance with the provisions
of the Insurance Ordinance, 2000 (the Ordinance); and
(b) each statutory fund set up by the Company complies with the solvency requirements of the Ordinance.
OMER MORSHED, FCA, FPSA, FIA

Appointed Actuary
Karachi 24 March 2007
Statement by Directors
We refer to the attached published Financial Statements of the Company, and in particular published Balance Sheet and
Revenue Account and confirm that, in our opinion, each statutory fund set up by the Company complies with the solvency
requirements of the Insurance Ordinance, 2000.
HASANALI ABDULLAH
Director
RAFIQUE R. BHIMJEE
Director
TAHER G. SACHAK
Managing Director &
Chief Executive
Chairman
Annual Report 2006
49
Pattern of Shareholding as at 31 December 2006
Number of
Shareholdings
Shareholders
From
To
128
151
204
105
14
12
7
5
2
2
1
1
1
1
3
1
1
2
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
101
501
1 001
5 001
10 001
15 001
20 001
25 001
30 001
35 001
40 001
45 001
50 001
70 001
90 001
175 001
185 001
215 001
250 001
260 001
275 001
350 001
355 001
365 001
370 001
385 001
410 001
440 001
455 001
460 001
560 001
595 001
1 250 001
1 345 001
1 645 001
5 990 001
11 850 001
100
500
1 000
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
50 000
55 000
75 000
95 000
180 000
190 000
220 000
255 000
265 000
280 000
355 000
360 000
370 000
375 000
390 000
415 000
445 000
460 000
465 000
565 000
600 000
1 255 000
1 350 000
1 650 000
5 995 000
11 855 000
Shares Held
7 438
47 160
192 920
213 756
103 643
147 861
125 456
118 215
55 885
66 298
37 500
40 200
47 428
50 100
215 910
95 000
178 027
371 162
219 420
250 200
262 115
279 787
350 100
355 090
370 000
375 000
386 571
410 500
444 780
457 871
464 142
564 000
600 000
1 253 254
1 347 500
1 649 995
5 994 498
11 851 218
661
Categories of Shareholders
Associated companies, undertakings and Related Parties
NIT & ICP
CEO, Directors, their spouses and minor children
Executives
Public sector companies & corporations
Joint Stock companies
Banks, Development Finance Institutions,
Non-Banking Finance Institutions, Insurance Co.
Modaraba and Mutual Funds
Foreign Investors
Individuals/ Others
30 000 000
Number
Shares Held
1
3
8
3
17
7
11 851 218
997
3 314 630
40 307
6 015 306
2 183 905
Percentage
39.50
0.00
11.05
0.13
20.05
7.29
2
620
446 000
6 147 637
1.49
20.49
661
30 000 000
100.00
Information as required under the Code of Corporate Governance

Categories of Shareholders
Shareholders
Shares Held
Associated companies, undertakings and Related Parties

EFU General Insurance Limited
11 851 218
NIT & ICP

ICP A/c-Col. M.A. Sheikh
ICP A/c-Noman Farooq
Investment Corporation of Pakistan
1
1
1
800
142
55
CEO, Directors, their spouses and minor children

Taher G. Sachak
Ashraf W. Tabani
Jahangir Siddiqui
Rafique R. Bhimjee
Muneer R. Bhimjee
Hasanali Abdullah
Mrs. Naila Bhimjee W/o. Rafique R. Bhimjee
1
1
1
1
1
1
1
1
70 002
219 420
350 100
8 400
444 780
1 649 995
185 362
386 571
Shareholders holding 10% or more voting interest

EFU General Insurance Limited
Jahangir Siddiqui & Co. Ltd.
1
1
11 851 218
5 994 498
Annual Report 2006
50
Group Benefits - Offices
Karachi
Islamabad
37-K, Block 6, P.E.C.H.S.

Phone: 4535071-77
3rd Floor, Al-Malik Centre

70W, Jinnah Avenue (Blue Area)
Phone: 2825271, 2820989, 2271371
2820979, 2873382
Adeel H. Jaffery, Regional Manager

Hasan Riaz, Group Manager
Hasan Aamir, Group Manager
Naveed-ul Haq Bhatti, Marketing Executive
Riaz Husain Soomro, Marketing Executive
S. Afsar Raza, Marketing Executive
Lahore
87-B-III, Gulberg Scheme No.3
Phone: 5870801-04
Fazal Mehmood, Regional Manager
Zaheer Aslam, Senior Manager
Faisal Masud, Manager
Mubashar Ahmed, Manager
Tasleem Iqbal, Assistant Manager
Noor-ur-Rehman, Senior Manager
Faisalabad
2nd Floor, Ajmal Centre 289, Batala Colony
Phone: 8555981-87
Imran Yaqub, Marketing Executive
Multan
1st Floor, Rajput Commercial Centre
Tareen Road, Near Gul Tax
Phone: 4588805, 4513603, 4512702
M. Shahzad Habib, Marketing Executive
Annual Report 2006
51
Individual Life - Offices
KARACHI
Jauhar Branch
South Branch
Cantt Branch
41-E, Block 6, PECHS

Phone:4386505-07, 4527135 & 36
APWA Complex, F2, 67A, Garden Road

Phone: 2241981-84
Muzaffar Ahmed Bughio, Manager
Mustafa Hussain Ali, Group Manager
Zahoor Ahmed Khuhro, Manager
Karsaz Branch
Tower Branch
Central Branch
603, Park Avenue, Shahrah-e-Faisal

Phone: 4387319, 4531074, 4530328
603, Park Avenue, Shahrah-e-Faisal

Phone: 4387319, 4531074, 4530328
Fareed Ahmed Shaikh, Manager
Asmatullah Tunio, Sr. Regional Manager
Mayfair Branch
West Branch
2nd Floor, Karim Chambers

Merewether Road
Phone: 5216368, 5215803, 5215764
5215257, 5654886

Merewether Road
Phone: 5216368, 5215803, 5215764
5215257, 5654886
Husein Sachak,Group Manager
Nadeem Alam Ansari, Manager
Merewether Branch
Zamzama Branch

Merewether Road
Phone: 5216368, 5215803, 5215764
5215257, 5654886
Plot#10-C, Suite # 301 & 302, 3rd Floor

Comm. Street, Tareen Arcade
Zamzama, Phase V
Phone: 5822741-43
Rehan Anwar, Branch Manager
Srichand Lalwani, Sr. Branch Manager
New City Branch
Bin Qasim Branch
APWA Complex, F2, 67A, Garden Road

Phone: 2241981-84
180-A Liberty Square

Block-2, Off Tariq Road
Phone: 4300930-31, 4300932, 4300934
1st Floor, C-15, Phase#1

Gulshan-e-Hadeed, Bin Qasim
Phone: 4715070-72
Nadim Iqbal Hasni, Branch Manager
Asmatullah Tunio, Sr. Regional Manager
Ghulam Shabbir Mirani, Manager
Gulshan Branch
North Branch
Quaidabad Branch
Room No: 518, 5th Floor EFU House

M.A. Jinnah Road
Phone: 2311964, 2311969

Merewether Road
Phone: 5216368, 5215803, 5215764
5215257, 5654886
1st Floor, C-15, Phase#1

Phone: 4715070-72
41-1/E, Block 6, PECHS

Phone: 4386505-7, 4527135 & 36
A-34, 1st Floor, Hafeez Centre

KCHSU, Shahrah-e-Faisal
Phone: 4386340-44, 4384020, 4540389
S. Arif Raza, Branch Manager
City Branch
A-34, 1st Floor, Hafeez Centre,
KCHSU, Shahrah-e-Faisal
Phone: 4386340-44, 4384020
4540389, 4559126
Tariq Mehmood, Manager
Faisal Branch
41-1/E, Block 6, PECHS
Phone: 4386505-7, 4527135 & 36
Shamsuddin Shaikh, Group Manager
Garden Branch
Sultan Ahmed Ghumro, Manager
Gulshan-e-Hadeed Branch
1st Floor, C-15, Phase 1
Phone: 4715070-72
Farrukh N. Ansari, Branch Manager
Tanwir Ahmed Baloach, Manager

DAHARKI
Pioneer Branch
A-34, 1st Floor, Hafeez Centre, KCHSU
Shahrah-e-Faisal
Phone: 4386340-44, 4384020
4540389, 4559126
Daharki Branch
Indus Branch
Nasir Rashid Bhatti, Branch Manager
Abdul Rasheed, Manager

Shahrah-e-Faisal
Phone:4386340-44, 4384020, 4540389
Prime Branch
Rabnawaz Ghumro, Sr. Branch Manager
S. Shahid Hussain Zaidi, Manager
Near Khushali Bank Ltd, Main Road

Daharki, Dist Ghotki
Phone: (0723) 642424, 643440

Shahrah-e-Faisal
Phone: 4386340-44, 4384020, 4540389
Manzoor Hussain, Manager
52
Annual Report 2006
GHOTKI
LARKANA
Ghotki Branch
Larkana Branch
Shadani Shopping Centre

Near Police Station
Phone: (0723) 684107
1st Floor, Bukhari Shopping Centre

Station Road
Phone: (0741) 457434-37, 446702, 446700
Adil Mahmood Samejo, Branch Manager
Fateh M. Khuhawar, Branch Manager
Sukkur Branch
HYDERABAD
MIRPURKHAS
Cantt Branch
Mirpurkhas City Branch
Near Qasim Park

Opp: Queens Garden, Queens Road
Phone: (071) 5627067, 5622304
3rd Floor, Abdullah Chambers

Near Hotel Faran, Saddar
Phone: (022) 2785217 & 18
APWA House, Opp: Gama Stadium

Main Hyderabad Road
Phone: (0233) 63157- 59
Zaheeruddin Ghumro, Sr. Branch Manager
Zaheeruddin Baber, Branch Manager
Suresh Kumar, Branch Manager
Islamabad Branch
City Branch
NAUSHERO FEROZE
B-15/9, RECHS, Opp: Latifabad Unit 3

The Auto Bahn
Phone: (022) 3814239, 3814235-36
Naushero Feroze Branch
Dileep Nenwani, Sr. Branch Manager
Mumtaz Manzil, Opp: Al-Mehran Hotel

Main Road
Phone: (0242) 448661, 520349
Indus Branch
Haji Mohammad Dayo, Manager

Near Hotel Faran, Saddar.
Phone: (022) 2784628-29, 2785217 & 18
NAWABSHAH
Zeeshan Hyder, Manager
Mehran Branch
Near Hotel Faran, Saddar
Phone: (022) 2784628, 2785217 & 18
M. Umer Keerio, Branch Manager
Jacobabad Branch
1st Floor, National Autos
Main Quaid-e-Azam Road
Phone: (0722) 516476, 654391, 650156
Irfan Iqbal, Branch Manager
KHAIRPUR
Khairpur Branch
A-5, 3rd Floor, Civic Centre, Khairpur Mirs
Phone: (0243) 714330, 714337, 554016
Jamaluddin, Manager
Near Qasim Park

Phone: (071) 5627067, 5622304
Nazir Ahmed Solangi, Branch Manager
ISLAMABAD
3rd Floor, Al-Malik Centre,

70W Jinnah Avenue (Blue Area)
Phone: (051) 2820989, 2271371, 2820979
2873382, 2873379
M.Younis Butt, Regional Manager
AHMEDPUR EAST
Ahmedpur East Branch

Nawabshah Branch
Flat No.6, Tayyaba Shopping Centre
1st Floor, Katchery Road
Phone: (0244) 372807, 372808, 365033
Qasim Khan Plaza

Opp: Rizwan Chargha House
Katchery Road
Phone: (06222) 71358
M. Zahid Bashir, Manager
Abdullah M. Ghumro, Manager
ATTOCK
RANIPUR
Attock Branch
Ranipur Branch
JACOBABAD
Indus Branch
Opposite Five Star Service Station

N.H.W. Ranipur, District Khairpur
Phone: (0423) 500377
Noble Plaza, Opp: Peoples Colony Road

Kamra Road, Attock City
Phone: (0572) 602067
M. Faisal Kiyani, Manager
Zaheeruddin Ghumro, Sr. Branch Manager
BAHAWALPUR
SUKKUR
Bahawalpur Branch
City Branch
University Chowk, Bahawalpur

Phone: (062) 2282269, 2282475, 2282484
Near Qasim Park

Phone: (071) 5627067, 5622304
Shahzado Mal, Manager
Abdul Jabbar, Manager
Cantt Branch
Phone: (062) 2282269, 2282475, 2282484
Junaid Masud, Branch Manager
Annual Report 2006
53
City Branch
Khanpur City
Jinnah Branch

Phone: (062) 2282269, 2282475, 2282484
Near DSP Office

Model Town B
Phone: (068) 5575263, 5577809
18-C-1, Commercial Zone

1st Floor, Liberty Market, Gulberg III
Phone: (042) 5716072-74
Sikandar Arshad, Manager
S.M. Raza Zaidi, Branch Manager
LAHORE
Metropolitan Branch
Capital Branch

Phone: (042) 5716072-74, 5789551
Kashif Azeem, Sr. Branch Manager
Fort Branch
Phone: (062) 2282269, 2282475, 2282484
Waqar Asif Mullick, Manager
FAISALABAD

3rd Floor, Liberty Market, Gulberg III
Phone: (042) 5789549-50, 52, 54
Zahid Ali Raza, Branch Manager
Chenab Branch
Iftikhar Hassan, Manager
Ravi Branch

Phone: (041) 8555981-84
City Branch
43-L, 1st Floor, Gulberg II, M.M. Alam Road

Phone: (042) 5871235-7
Tajamal Khan, Branch Manager
Faisalabad Branch
Phone: (041) 8555981-84
M. Ihsan-ul-Haq, Branch Manager
GUJRANWALA

Phone: (042) 5789549-50, 52, 54
Shahid Iqbal Bhatti,Sr. Branch Manager
Civic Branch
43L, 1st Floor, Gulberg II, M.M. Alam Road
Phone: (042) 5871235-7
Tanveer Ahmed Khan, Sr. Branch Manager
Shalimar Branch
Phone: (042) 5716072-74
Ejaz Ahmed Arshad, Branch Manager
Mahmood Ahmed, Branch Manager
MANDI BHAUDDIN
Crescent Branch
Mandi Bhauddin Branch

Phone: (042) 5789549-50, 52, 54
2nd Floor, Jamil Plaza, Old GTS Station

Phone: (0546) 520955-6
Gujranwala Branch
2nd Floor, AWR Plaza
Main G.T. Road
Phone: (055) 3734104, 3731660
Zahid Khan, Branch Manager
Malik Azhar, Manager

GUJRAT
Faisal Tahir, Manager

MULTAN
Defence Branch
Gujrat Branch
Dhakkar Plaza, Rehman Shaheed Road
Phone: (053) 3514246, 2112484, 3607033
Kh. Mujibur Rehman, Sr. Branch Manager
JHELUM
Jhelum Branch
1st & 2nd Floor, Fazal Plaza, Civil Lines
Phone: (0544) 610287-88
Kh. Mujibur Rehman, Sr. Branch Manager
KHANPUR
Khanpur Branch
Near DSP Office
Model Town B
Phone: (068) 5575263, 5577809

Phone: (042) 5871235-7
Mian Kashif Naseer, Manager
Cantt Branch
Phone: (061) 4588805, 4512702, 4517787
Fort Branch
M. Abid Raza Shah, Branch Manager

Phone: (042) 5871235-7
City Branch
Waqar Asif Mullick, Manager
Gulberg Branch
Phone: (042) 5716072-74
S. Mehdi Raza Zaidi, Manager

Phone: (061) 4588805, 4512702, 4517787
Wazir Ali Zaidi, Branch Manager
Multan Branch
Phone: (061) 4588805, 4512702, 4517787
M. Kashif Riffat, Sr. Branch Manager
Imtiaz Husain, Branch Manager
54
Annual Report 2006
Multan Fort Branch

Phone: (061) 4588805, 4512702, 4517787
S. Hasnain Mehdi, Manager
ABBOTABAD
HUB CHOWKI
Abbotabad Branch
Hub Chowki Branch
1st Floor, Al-Fateh Shopping Centre

Opp: Radio Station, Mansehra Road
Phone: (0992) 341978
Flat 1, 1st Floor, Bismillah Market

Main RCD Road
Hub, District Lasbella
Phone: (0853) 302115
RAHIM YAR KHAN
M. Younis Butt, Regional Manager
City Branch
DERA ISMAIL KHAN
Near Garden Marriage Hall

Opp: Town Hall
Phone: (068) 5880034, 5884365
AZAD KASHMIR
Dera Ismail Khan Branch
Islam-ul Haq Shami, Branch Manager
Najeeb Centre, 1st Floor,

East Circular Road
Phone: 0300 8291060
Rahim Yar Khan Branch
Ayub Khan, Sr. Branch Manager
Near Garden Marriage Hall

Opp: Town Hall
Phone: (068) 5884457, 5880034
PESHAWAR
Mukhtar A. Tabassum, Branch Manager

RAWALPINDI
Rawalpindi Branch
2nd Floor, 20B, North Star Plaza
Murree Road, Rehmanabad.
Phone: (051) 4581364, 4581365, 4581366
M. Atif Khan, Branch Manager
Jagdeesh Kumar, Manager
Kotli Branch
Poonch Road, Opp. Gulistan Plaza
Rathore Plaza, Kotli
Phone: (058660) 45621
Sardar Zakaullah Khan, Branch Manager
Peshawar Branch
Suit No, 1,2,3, 2nd Floor, Azam Towers
Arbab Road Stop,Jamrud Road
University Town
Phone: (091) 5852921, 5843404
5852922, 5852923
S. Jameel Abbas, Manager
QUETTA
Chiltan Branch
SARGODHA
Sargodha Branch
1st Floor, 66- Civil Line, Court Road
Khan Arcade
Phone: (048) 3725516-18
Akhtar Husnain Akhtar, Manager
SIALKOT
Sialkot Branch
1st Floor, Riaz Plaza
Adj. Saudi Pak Bank, Paris Road
Phone: (052) 4264167 & 68, 4262363
Zahid Khan, Branch Manager
1st Floor, Shaheen View, Model Town

Hali Road
Phone: (0812) 2841696, 2834831, 2827787
Kantesh Kumar, Branch Manager
Dera Allah Yar Branch

Main Quetta Road, Dera Allahyar
Phone: (0838) 510636, 510840
Irfan Iqbal, Branch Manager.
Quetta Branch
1st Floor, Shaheen View, Model Town
Hali Road
Phone: (0812) 8434831, 2841696, 2827787
Shahjahan, Group Manager
Annual Report 2006
55
E F U LIFE ASSURANCE LTD

Form Of Proxy
I/ We
of
being a member of E F U L I F E A S S U R A N C E LT D hereby appoint
Mr.
of
or failing him
of
as my/our proxy in my/our absence to attend and vote for me /us and on my/our
behalf at the 15th Annual General Meeting of the Company to be held on
Saturday April 28, 2007 at 10:30 a.m. and at any adjournment thereof.
Signed this
day of April 2007.
WITNESSES:
1. Signature:
Revenue
Stamp
Name:
Address:
CNIC Or
Passport No:
2. Signature:
Signature of Member(s)
Shareholder's Folio No.
and/or CDC
Name:
Participant I.D.No.
Address:
and Sub Account No.
CNIC Or
Passport No:
Important:
This form of Proxy, duly completed, must be deposited at the Company's Registered Office at
Al-Malik Centre, 70 W, F-7/ G-7 Jinnah Avenue (Blue Area) Islamabad not later than 48 hours before
the time appointed for the meeting.
CDC Shareholders and their Proxies are each requested to attach attested photocopy of their Computerized
National Identity Card (CNIC) or Passport with this proxy form before submission to the Company.
CDC Shareholders or their Proxies are requested to bring with them their Original Computerized National
Identity Card or Passport alongwith the Participant's ID number and their account number at the time
of attending the Annual General Meeting in order to facilitate their identification.
EFU Life Branch

Network
1 Attock
Peshawar 1
Abbottabad
Islamabad 1
1 Kotli (A.K.)
Rawalpindi 1
Jhelum 1 Gujrat
1 1
Mandi Bahuddin 1
Sialkot
1
1
Sargodha
Gujranwala
11
Faisalabad Lahore
Quetta
Multan
Khanpur
Ahmedpur East 4
Jacobabad
Bahawalpur
Daharki
Sukkur 1
3 Ghotki
Larkana 1
Rahim Yar Khan
1 Khairpur
Naushero Feroze 1 Ranipur
1
Hub Nawabshah
Mirpurkhas
22 Hyderabad
Karachi
Annual Report 2006
Designed & Produced by G.H. Thaver & Co. (Pvt) Ltd.

Annual Report Apr2006

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Annual Report Apr2006

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1932

75 Years: Reaching this

Life at EFU Life

Profit and Loss

EFU LIFE ASSURANCE LTD

Annual Report 2006

WE ARE FOCUSED ON OUR

Our values give us a sharply defined customer focus which

Annual Report 2006

EFU LIFE ASSURANCE LTD

WE POSSESS DEMONSTRABLE FINANCIAL

Promises are given credence by the ability to keep them.

EFU LIFE ASSURANCE LTD

Annual Report 2006

WE ARE CONFIDENT ABOUT OUR

The success of our past enables us to look ahead with

Annual Report 2006

EFU LIFE ASSURANCE LTD

EFU LIFE ASSURANCE LTD

Working together as a team

Annual Report 2006

Life at EFU Life

EFU Life launched an SMS-based service,

EFU Lifes MDRT qualifiers attended a

EFU Life and ABN AMRO signed an

Annual Report 2006

EFU LIFE ASSURANCE LTD

Initiatives were taken to

EFU Life signed a Bancassurance

EFU LIFE ASSURANCE LTD

KPMG -Taseer Hadi & Co.

Gardezi & Co.

Annual Report 2006

EFU LIFE ASSURANCE LTD

Managing Director & Chief Executive

National Sales Director

EFU LIFE ASSURANCE LTD

Annual Report 2006

Claim Settlement Committee

Annual Report 2006

EFU LIFE ASSURANCE LTD

EFU LIFE ASSURANCE LTD

Annual Report 2006

transact any other matter with the permission of the Chair.

March 24, 2007

SYED MEHDI IMAM

A. For attending the meeting:

B. For appointing proxies:

Annual Report 2006

EFU LIFE ASSURANCE LTD

2. Item 5 regarding Bonus issue:

3. Item 6 regarding investment in associated company:

Name of Investee Company:

Nature, amount and extent of investment:

Price at which shares will be purchased:

vi) Earning per share of investee company in last three years:

EFU LIFE ASSURANCE LTD

Annual Report 2006

vii) Sources of funds from where shares will be purchased:

xi) Interest of Directors and their relatives in the investee company:

4. Item 7 regarding increase in Authorised Capital:

Annual Report 2006

EFU LIFE ASSURANCE LTD

Report of the Directors to the Members