ANNUAL REPORT 2018 1st KEY We are making INFORMATION things better 2018 together AA- Rated by: PACRA 5,239 3,269 6,895 Gross Gross Total Premium Claims Assets 563 389 323 Profit Profit Underwriting Before Tax After Tax Results Rupees in Millions 1,762 18% 15% Total Return on Bonus Investment Total Equity Shares Annual Report 2018 1 CONTENTS COMPANY INFORMATION 01 04 06 07 Rating United International Corporate Core Group Calendar Beliefs 08 Vision / Mission Statement INVESTOR INFORMATION 10 12 13 14 Board of Corporate Key Management Banks & Directors Information Personnel Leasing Companies 15 17 18 20 The United Insurance Six Years at Vertical Horizontal at a Glance a Glance Analysis Analysis 22 28 29 Segment wise Group Chairman’s Chief Executive’s Outline Message Message CORPORATE GOVERNANCE 30 38 41 42 Directors Report Report on Corporate Code of Independent Auditor’s Review to the members and Financial Reporting Conduct Report Framework 43 47 49 54 اراکین کو Statement of Compliance Pattern of Categories of ڈائریکٹرز رپورٹ with the Code of Shareholding Shareholding Corporate Governance for Listed Companies 2 United Insurance Company of Pakistan Limited FINANCIAL STATEMENTS 55 56 60 62 Financial Auditor’s Report to the Statement of Profit and Statement Members Financial Position Loss Account 63 64 66 67 Statement of Cash flows Statement of Notes to and Forming Comprehensive Income Statement Changes in Equity Part of the Financial Statements 132 Our Branches WINDOW TAKAFUL OPERATIONS FINANCIAL STATEMENTS 142 144 145 148 Shariah Auditor’s Report Shariah Advisor’s Report Independent Auditor’s Statement of on Compliance to the Board of Directors Report to the Members Financial Position 149 150 151 153 Profit and Statement of Cash flows Statement of Loss Account Comprehensive Income Statement Changes in Funds 154 Notes to and Forming Part of the Financial Statements ANNUAL GENERAL MEETING 203 210 211 Notice of Annual General Notice of Annual General Proxy Form Meeting Meeting Urdu Annual Report 2018 3 UNITED INTERNATIONAL GROUP We’re leading our sector and working with our clients to advance the cause of sustainability — even in places where you might not expect us. The United APNA Micro Insurance Company Finance Bank of Pakistan Limited. Limited. United Software United Track & Technologies System (Pvt.) International (Pvt.) Limited. Limited. Tawasul Risk United Management International Services (Pvt.) Farms. Limited. 4 United Insurance Company of Pakistan Limited The United Insurance UIC is a part of the United With our experience, global Company of Pakistan international Group (UIG) resources and vision we aim Limited, a leading insurance as well as the company is a to provide financial certainties provider in Pakistan, was public limited company listed and eliminate financial risk established in the year in Pakistan Stock Exchange from this uncertain world. 1959 on the 20th day of Limited (Formerly Karachi Hence our motto “Your risk October. It was operational Stock Exchange Limited). is secure with us” serves this in Pakistan including East purpose. Pakistan (now Bangladesh). Our traditional business UIC has established a model is based on cost large network of branches effective risk management throughout Pakistan solutions to our policyholders currently operating 110 through highest level of branches all over Pakistan. quality. We are dedicated to UIC doing General business our customer as well as our including Group Health shareholders to maximize Insurance, Travel Insurance their profits depending on the (Health), Travel Bonds & variables that are factored Guarantees, Livestock and in with the investments. We Crop Insurance. are leading the insurance sector and working with our clients to advance the cause of sustainability even in the rural areas. Annual Report 2018 5 CORPORATE CALENDAR 2018 March April 21, 22 / 30 / 2018 2018 Audit Committee and Board of Annual General Meeting of Directors meeting to consider Shareholders to consider annual annual accounts of the Company for accounts of the Company for the the year ended December 31, 2017. year ended December 31, 2017 and dividend announcement. August April 27, 28 / 30 / 2018 2018 Audit Committee and Board of Audit Committee and Board of Directors meeting to consider half Directors meeting to consider yearly accounts of the Company for quarterly accounts of the Company the half year ended June 30, 2018. for the quarter ended March 31, 2018. October 26,27 / 2018 Audit Committee and Board of Directors meeting to consider quarterly accounts of the company for the quarter ended September 30, 2018. 6 United Insurance Company of Pakistan Limited CORE BELIEFS UIC believes in providing high quality solutions to risk exposures to the fulfillment of its customers through: • Surpassing the values throughout the entire » Customer centricity organization. These principles will guide us To put our customers at the heart of to succeed in our business, and will serve us all we do. We utilize of our global scale well ahead into the future from day-to-day experience to convert insights and business operation to product development observations into useful ideas that we put and customer services. to work for our customers. • Building the team that takes responsibility for the delivery of our services. By developing our » Sustainable value creation technical & marketing staff, who may deliver To create and sustain value for our services competently. Also give them a sense customers, our shareholders, our people of pride in the Company. and society. To maintain a culture of • Believing that by being pro-active and meeting precision, stability and reliability that the changing needs of our clients through instills confidence and trust in our value – added products and services, meeting commitment to deliver when it matters the aspirations of all our stakeholders. now and in the future. A key component • Also believing that quality of work is the key of sustainable value creation, and indeed factor in an organization. So, continuous of all our values, is our commitment to a quality improvements shall be the key drivers high standard of corporate responsibility. in our management processes. • Our commitment to integrity, customer » Excellence centricity, sustainable value creation, To aim for the highest quality and strive excellence and teamwork fosters trust with for continuous improvement in all that we our shareholders and our customers. It do. Find new ways of solving problems. nurtures talent and mitigates internal risks To test what we do and how we do it for through openness and transparency. It helps fairness, diversity, trust, and mutual us secure the support of regulators and the respect. investment community. It nurtures talent and mitigates internal risks through candor and » Teamwork transparency. It helps us secure the support of To work together as one team…one regulators and the investment community. Company. Collaborating and applying our global insights to deliver the best for our » Integrity stakeholders. Value our diverse, talented To treat everyone fairly and honestly. workforce; and support them so that they To comply with all applicable laws, can contribute to their full potential. regulations and internal policies. Annual Report 2018 7 VISION & MISSION STATEMENTS VISION MISSION A first class Insurance Company For our customers / Window Takaful operator • To provide superior services through high quality business to provide cost effective risk solutions and health protection, based on expert advice and management solutions to its financial management and adding value to the all corporate and policy-holders / participants non corporate customers. through highest level of quality. For our Members • To maximize the members’ value by optimum utilization of resources. For our Employees • To provide opportunities for self-development in a highly challenging performance oriented work environment. For the Society • To ensure good governance by maintaining high ethical standards and risk coverage. For the Government • Prompt and timely liquidation of liabilities and adherence to the policies established. 8 United Insurance Company of Pakistan Limited INVESTOR INFORMATION INVESTOR’S AWARENESS With reference to SRO 924(1) / 2016 dated September 9th, 2015 issued by the Securities and Exchange Commission of Pakistan (SECP), the following informational message has been added for investor‘s awareness: Annual Report 2018 9 BOARD OF DIRECTORS Javed Sadiq CHAIRMAN Mohammed Rahat Sadiq CHIEF EXECUTIVE OFFICER Mian M.A.Shahid ADVISOR TO BOARD / (CHAIRMAN UIG) 10 United Insurance Company of Pakistan Limited BOARD OF DIRECTORS Huma Waheed Khawas Khan Niazi Syed Rahat Ali Shah DIRECTOR DIRECTOR/PRESIDENT DIRECTOR Agha Ali Imam Jamil A. Khan DIRECTOR DIRECTOR Annual Report 2018 11 CORPORATE INFORMATION BOARD OF DIRECTORS CHIEF INTERNAL AUDITOR WEB PRESENCE Abdul Mannan Munir www.theunitedinsurance.com CHAIRMAN Javaid Sadiq AUDITORS M/S. Ilyas Saeed & Co. DIRECTOR /PRESIDENT Chartered Accountants Khawas Khan Niazi REGISTERED OFFICE LEGAL ADVISORS 204, 2nd Floor, Madina City CHIEF EXECUTIVE OFFICER Mohammed Farooq Sheikh (Advocate) Mall, Abdullah Haroon Road, Mohammed Rahat Sadiq Saddar Karachi. Mian Asghar Ali TEL: 021-35621460-2, DIRECTORS (Advocate) 021-35221803-4 Huma Waheed FAX: 021-35621459 Agha Ali Imam TAX ADVISOR Email: Jamil A. Khan M/S. Sarwars Chartered [email protected] Syed Rahat Ali Shah Accountants HEAD OFFICE ADVISOR TO BOARD CREDIT RATING AGENCY UIG House, 6-D,