Annual Report 2006 E F U GENERAL INSURANCE LTD. 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 Company Information Profit & Loss Account 3 22 Management Statement of Changes in Equity 4 23 Vision and Mission Statements Statement of Cash Flows 7 24 Notice of Meeting Statement of Premiums 8 25 Report of the Directors Statement of Claims 10 26 Key Financial Data for the Statement of Expenses Last Six Years 27 15 Statement of Investment Income Statement of Compliance with 28 Code of Corporate Governance Notes to the Accounts 16 29 Review Report by Auditors on Pattern of Shareholding Corporate Governance 46 18 Offices Auditors’ Report 47 19 Balance Sheet Form of Proxy 20 EFU General Insurance Ltd. Annual Report 2006 Company Information Chairman Audit Committee Rafique R. Bhimjee Muneer R. Bhimjee Taher G. Sachak Managing Director & Chief Executive Abdul Rehman Haji Habib Saifuddin N. Zoomkawala Rating Agency: JCR-VIS Directors Insurer Financial Strength Rating: AA Sultan Ahmad Outlook Stable Abdul Rehman Haji Habib Jahangir Siddiqui Auditors Wolfram W. Karnowski Gardezi & Co. Muneer R. Bhimjee Chartered Accountants Hasanali Abdullah Karachi Taher G. Sachak Website Corporate Secretary www.efuinsurance.com Hasanali Abdullah Registered Office Legal Advisor 11/4, Shahrah-e-Pehlavi, Peshawar. Mohammad Ali Sayeed Main Offices Senior Advisor EFU House S.C. (Hamid) Subjally, A.C.I.I. M.A. Jinnah Road, Karachi. Co-operative Insurance Building Advisors 23-Shahrah-e-Quaid-e-Azam, Lahore. Akhtar K. Alavi, A.C.I.I. Naqi Zamin Ali Annual Report 2006 EFU General Insurance Ltd. 3 Management Managing Director Senior Executive Vice Presidents Saifuddin N. Zoomkawala Abdul Hameed Qureshi, M.Sc. Abdul Sattar Baloch Joint Managing Director Aftab Fakhruddin, B.E. Hasanali Abdullah, F.C.A. Bashir Seja Imran Ahmed, M.B.A., A.C.I.I. Javed Iqbal Barry, M.B.A., L.L.B., F.C.I.I. Senior Deputy Managing Director Jawahar Ali Kassim Mahmood Lotia, A.C.I.I. Jehanzeb Karamat Kamran Arshad Inam, B.E. Deputy Managing Director Kauser Ali Zuberi Qamber Hamid, LL.B., LL.M. Khalid Mahmood Mirza Khozema T. Haider Mota Senior Executive Directors Khurram Nasim Abdul Rehman Khandia, A.C.I.I. M. Mubashirullah Khan Jaffer Dossa M. Shoaib Razzak Bramchari Javid Niaz Khan, M.A., A.C.I.I. Malik Akbar Awan Executive Vice Presidents Muhammad Iqbal Lodhia Abdul Razzak A. Sattar Nudrat Ali Babar A. Sheikh S. M. Haider, M.Sc. Javed Akhtar Shaikh, B.B.A. S. Salman Rashid Khalid Usman Salim Rafik Sidiki, M.A. Mir Babar Ali Shaukat Saeed Ahmed Mohammad Arif Bhatti Syed Ahmad A. Haq, M.Sc. Mohammad Rizwanul Haq Muhammad Naeem Hanif Executive Directors Musakhar-uz-Zaman, B.E. Khurram Ali Khan, B.E. Ross Masood M.B.E. Syed Mehdi Imam, M.A. Salemmullah Tahir Shaharyar Jalees, M. A. Syed Shahid Hussain Deputy Executive Director Yawar Aminuddin Altaf Qamruddin Gokal, F.C.A. Zarar Ibn Zahoor Bandey Assistant Executive Directors Austen B. Freitas Darius H. Sidhwa, F.C.I.I K. M. Anwar Pasha M. Shezad Habib Mahmood Ali Khan, M.A. Mohammad Iqbal Dada, M.A., A.C.I.I. S. Aftab Hussain Zaidi, M.A., M.B.A. S. M. M. Rizvi Thomas Leo Fernandez EFU General Insurance Ltd. 4 Annual Report 2006 Senior Vice Presidents Imran-ul-Haq Irfan Ahmad, A.C.M.A. Inayatullah Chaoudhry Javed Iqbal Khan Adam Dur Mohd. Baloch Inayatullah Khalil Kaleem Imtiaz Ali Kausar Irshad Zamir Hashmi Laeeq Ahmad Amin Nizar Ali, F.S.A. (USA) F.P.S.A. Kaiser Ali Liaquat Imran Aslam A. Ghole, F.C.I.S. M. Hussain Khatri M. A. Qayum Atta-ur-Rehman Riaz Mansoor Abbas Abbasi Malik Firdaus Alam Azharul Hassan Chishti Mohammad Afzal Khan Manan Meboob Haji Mohammad Ayub Mohammad Amin Sattar, M.Com Ms. Menija N. Messman Khalid Ashfaq Ahmed Mohammad Pervaiz Moaz Nabi Liaquat Ali Khan, F.C.I.I., AMPIM Muhammad Azhar Ali Mohammad Adil Khan Mahmood Jafri Muhammad Shakil Khan Mohammad Hanif Masroor Hussain Muhammad Sohail Nazir, M.Sc., A.C.I.I. Muhammad Ilyas Mazhar H. Qureshi Pervez Ahmad Muhammad Salahuddin Mohammad Haji Hashim Riaz Ahmad Mohammad Siddique Khan Mohammad Hussain S. M. Aamir Kazmi Muhammad Asif Hussain, A.P.A, A.C.M.A. Mohammad Kamil Khan, M.A. S. M. Shamim Muhammad Naseem Mohammad Nasir Shahzad Zakaria Muhammad Shahjahan Khan Mohammad Younus Shazim Altaf Kothawala Muhammad Shoaib Muhammad Arif Khan Suleman Poonjani, A.C.A. Musarrat Zaman Shah Muhammad Asif Arif, M.B.A., A.C.I.I. Syed Abdul Quddus Nadeem Ahmad Khan Muhammad Ilyas Khan, A.C.I.I. Syed Abid Raza Rizvi, M.Com Nadeemuddin Farooqi Muhammad Rashid Akmal, M.B.A. Syed Ahmad Hassan, M.B.A. Nadir Hussain Muhammad Razzaq Chaudhry Tayab Nisar, A.C.I.I. Quaid Johar Muhammad Sohail Wasim Tasawwar Rana Zafar Iqbal Muhammad Suleman Qasim Zahid Hussain, A.C.I.I. Rao Abdul Hafeez Khan Naseeruddin Ahmed Zia Mahmood Rizwan Ahmed, M.B.A. Qasim Ali Mohammad S. Anwar Hasnain Rizwan-ul-Haq Assistant Vice Presidents Saghirul Hasan Syed Sadiq Ali Jafri Abdul Hameed Salimullah Khan Tariq A. Niazi, M.B.A. Shah Asghar Abbas Tayyab Hussain Gardezi, M.Sc. Abdul Majeed Abdul Mateen Farooqui, M.Sc. Shahid Abdullah Godil Zafar Ali Khokhar, M.A. Shaikh Mohammad Yousuf Zakaria Suleman Abdul Rashid Agha Ali Khan Syed Salahuddin, A.C.I.I. Usman Ali Vice Presidents Ali Raza Arshad Ali Khan, A.C.M.A. Waqar Ahmad, M.Sc. A. Ghaffar A. Kareem Asghar Ali Waqar Hasan Qureshi Abdul Qadir Memon, M.Sc. Asif Mehmood Zia Ur Rehman Abdul Shakoor Piracha Dr. Ghulam Jaffar, Ph.D Abdul Wahid Fakhruddin Saifee Business Consultant Ali Akbar Zaidy, A.P.A, A.C.A. Faisal Gulzar Maqbool Saeed Atta-ul-Haq Khan Farhat Iqbal Badar Amin Sissodia Farrukh Ahmad Qureshi Chief Medical Officer Baqar Aneel Jafari Ghulam Haider, M.Sc. Dr. Mohbat Ali Khowaja Farman Ali Afridi Haider R. Rizvi Iftikharuddin Haseeb Ahmad Bajwa Annual Report 2006 EFU General Insurance Ltd. 5 Marketing Executives Senior Vice Presidents Syed Hasan Ali Syed Rizwan Haider Abootalib Dada Syed Shahid Raza Senior Executive Directors Amin Yaqoob Tariq Jamil Altaf Kothawala Azmat Maqbool, M.B.A. Usman Ali Khan Jahangir Anwar Shaikh Imran Ali Khan Irfan Raja Jagirani Executive Director Kh. Zulqarnain Rasheed Assistant Vice Presidents Abdul Wahab Polani Malik Akhtar Rafique Ali Hasnain Shah Mohammad Iqbal Arshad Iqbal Ms. Kehkashan Sultana Asif Elahi Deputy Executive Directors Muhammad Azhar Dawra Asrar Ahmed Haroon Haji Sattar Dada Muhammad Farooq Badar Hasan Qureshi Mohd. Khalid Saleem, M.A. Muneeb Farooq Kothawala Bashir Ahmed Sangi Syed Kamran Rashid Rashid Habib Farid Khan Syed Rizwan Hussain S. Ashad H. Rizvi H.H. Ansari Shahid Younus Imdadullah Awan Assistant Executive Director Ms. Shazia Rahil Razzak Javed Iqbal Cheema Agha S. U. Khan Syed Baqar Hasan, M.A. M. Amir Arif Bhatti Wasim Ahmed M. Anis-ur-Rehman Senior Executive Vice Presidents Yousuf Alvi M. Aslam Hayat Abdullah H. Godil M. Owais Jagirani Akhtar Kothawala Vice Presidents M.A. Qayyum Khan Maria N. Jagirani Ali Safder Amir Hassan Mian Abdul Razak Raza Mrs. Nargis Mehmood Atique H. Patel Mubashir Saleem Syed Amir Aftab Azam Rafique Muhammad Hamid Ali Janjua Syed Asim Iqbal Ejaz Ahmed Muhammad Imran Naeem Syed Jaweed Envor Fakhar-e-Alam Muhammad Tayyab Nazir Fatima Moiz Shaikh Naeem-ullah Jan Ghulam Murtaza Khuru Executive Vice Presidents Omar Javid Hamza Siddiq Godil Aamir Ali Khan Qamarul Hasan Ansari Jameel Masood Abdul Wahab Mrs. Sadia Muneer M. Ashraf Samana Alamgir Anwar Shaikh Syed Imran Zaidi M. Mushtaq Najam Butt Anis Mehmood Mrs. Tanveer Khurshid M. Saleem Babar Faisal Fasih Tanveer Masood M. Zia-ul-Haq Iftekhar A. Khan Tauqir Hussain Abdullah M. Yousuf Jagirani Mian Ikram Ellahi Muhammad Umer, M.A. Muhammad Javed Muhammad Umer Memon Muhammad Niamatullah Rizwan Siddiqui Muhammad Rehan Iqbal Booti Syed Ali Zaheer Muhammad Sheeraz Talib Abbas Shigri Rizwan Humayun S. Sohail Haider Abidi EFU General Insurance Ltd. 6 Annual Report 2006 Vision And Mission Statements VISION Our vision is to be the first choice company for our customers, shareholders and employees. To achieve this we will be driven by an obsession to be better than the best in a continuous journey, not a destination. At EFU first choice means a sustained commitment to meet and exceed stakeholder expectations. A will to go the “Extra Mile” to delight our customers with products and services that exceed their expectations. MISSION We will manage our affairs through modern technology, collective wisdom and institutionalised leadership. We will be a respected, cultured and an educated company with a strong market position. Together with our customers, reinsurers and employees we will achieve world class quality standards through continuous quality improvement. Achieve zero defects in everything we do. We will do good business, with good clients and of the highest integrity. We will not compromise our principles and we will like to be known as a responsible corporate citizen aware of our obligation to the Government and the society we serve.