ANNUAL REPORT 2007 IGI Insurance Limited Flowering Trees of Pakistan People are caring for and planting more trees because ecological awareness has prompted many ofustoseeintreesthebestand surest living antidote to restoring the equilibrium of Mother Nature. Treesremaintheguardiansofour soil and water, the refuges of wild life,andtheprovidersofmany things. It is their grace and form, their silent almost timeless vigil, their links with the past, their hopes for the future which give treesaspecialattractiontous. IGI Insurance Report 2007 is dedicated to some of the flowering treesthataregrowninPakistan. CONTENTS Vision / Mission Statement 2 Quality Policy 3 Company Information 4 Management Information 6 Introduction 7 Key Financial Data 19 Shareholders’ Information 22 Directors’ Report to the Shareholders 30 Statement of Compliance with the Code of Corporate Governance 36 Review Report to the Members on Statement of Compliance with Best Practices of Code of Corporate Governance 38 Auditors’ Report to the Members 39 Balance Sheet 40 Profit and Loss Account 42 Statement of Changes in Equity 43 Cash Flow Statement 44 Statement of Premiums 46 Statement of Claims 47 Statement of Expenses 48 Statement of Investment Income 49 Notes to the Financial Statements 50 Notice of Annual General Meeting 80 Form of Proxy VISION QUALITY POLICY IGI Insurance is committed to being one of the leading providers of solutions to risk exposures in IGI Insurance believes in providing selected market segments high quality solutions to risk in Pakistan. exposures to the satisfaction of its customers through MISSION Developing and maintaining Our vision will be realized through: a total quality culture CUSTOMERS Developing capabilities of the employees Being the preferred insurer in providing solutions to risk exposure Continuous improvement and teamwork SHAREHOLDERS Consistently delivering above Updating business knowledge market average return on capital and techniques Efficient utilization of resources EMPLOYEES and manpower Providing the environment necessary to be the employer of choice Introducing high standards of professionalism COMMUNITY Compliance with the highest ethical and moral standards BOARD OF DIRECTORS COMPANY INFORMATION Board of Directors Under Writing Committee Auditors Syed Babar Ali (Chairman) Syed Hyder Ali (Chairman) A. F. Ferguson & Co. Shamim Ahmad Khan Syed Khalid Yusuf Chartered Accountants Syed Kamal Ali Shahbaz Haider Agha Legal Adviser Syed Yawar Ali Syed Matin Ahmed Ramday Law Associates Syed Shahid Ali Yasmin Sadiq (Secretary) Hassan & Hassan Syed Hyder Ali Re-Insurance & Co-Insurance Saulat Said (Chief Executive Officer) Share Registrar Committee Ferguson Associates (Pvt) Limited Chief Executive Officer Syed Hyder Ali (Chairman) State Life Building No.2A, Saulat Said Saulat Said 4th Floor I.I. Chundrigar Road, Syed Khalid Yusuf Chief Operating Officer P.O. Box # 4716 Faisal Khan (Secretary) Syed Babar Ali Syed Khalid Yusuf Karachi - Pakistan Human Resource & CFO & Company Secretary Registered & Head Office Compensation Committee Muhammad Kashif Nisar 7th Floor, The Forum, Syed Yawar Ali (Chairman) Suite No.701-713, G-20, Audit Committee Syed Shahid Ali Block 9, Khayaban-e-Jami, Shamim Ahmad Khan (Chairman) Syed Hyder Ali Clifton, Karachi-75600 Syed Yawar Ali Saulat Said (Secretary) Syed Kamal Ali Pakistan Syed Hyder Ali Strategy Committee Akhtar Abbas (Secretary) Web Presence Syed Babar Ali (Chairman) www.igiinsurance.com.pk Investment Committee Shamim Ahmad Khan Syed Hyder Ali (Chairman) Syed Yawar Ali Contact Shamim Ahmad Khan Syed Hyder Ali UAN: 111-308-308 Shamim Ahmad Khan Syed Kamal Ali Saulat Said (Secretary) Fax: 92-21-5301771-2 Saulat Said Bankers Muhammad Kashif Nisar (Secretary) ABN AMRO Bank (Pakistan) Limited Claims Committee Allied Bank Limited Shamim Ahmad Khan (Chairman) Bank Alfalah Limited Syed Khalid Yusuf Habib Bank Limited Shahbaz Haider Agha Habib Metropolitan Bank Limited Mir Mehmood Ali (Secretary) JS Bank Lmited Syed Hyder Ali KASB Bank Limited MCB Bank Limited Standard Chartered Bank (Pakistan) Limited Syed Yawar Ali MANAGEMENT TEAM From L t R: Mohammad Kashif Nisar, Syed Khalid Yusuf, Saulat Said, Shahbaz Haider Agha Syed Shahid Ali Saulat Said 04 IGI Annual Report 2007 MANAGEMENT INFORMATION INTRODUCTION MANAGEMENT A walk through history On the 26th of February 2007, International General Chief Executive Officer Saulat Said IGI Insurance Limited (formerly International Insurance Company of Pakistan Limited formally Chief Operating Officer Syed Khalid Yusuf General Insurance Company of Pakistan Limited) changed its name to IGI Insurance Limited, Chief Financial Officer & Company Secretary Muhammad Kashif Nisar was established in 1953 with Syed Maratib Ali as adopting a strategy where IGI was implemented as General Manager Marketing & Sales Shahbaz Haider Agha Head of Underwriting Yasmin Sadiq the first Chairman. As part of the Packages group, the new brand name for Insurance and its partner Head of Claims Mir Mehmood Ali IGI Insurance has grown into a prominent name in Companies. Having entered a new phase of Head of Re-Insurance & Risk Management Faisal Khan the insurance industry and has been listed on the progress and development, the Company has aimed Karachi and Lahore Stock Exchanges since at strengthening its profile within the financial IGI INSURANCE BRANCH OFFICES December 1987. With experience of over 50 years sector. As part of its strategy to enhance its presence Karachi Lahore (Syed Maratib Ali Branch) Sialkot and on the basis of well governed procedures in the financial sector, IGI Insurance has become an First Floor, Finlay House, First Floor, 5-F.C.C., Suite Nos. 10 & 11, First Floor, integral part of the corporate umbrella of IGI I.I. Chundrigar Road, Syed Maratib Ali Road, Soni Square, Khadim Ali Road, founded on the highest ethical and moral practices, Karachi - 74000. Gulberg, Lahore–54660. Mubarik Pura, Sialkot. IGI Insurance has instituted a sound business Financial Services which also includes IGI Phone: 92-21-2426974-78 Phone: 92-42-5753404-06 Phone: 92-52-3258437 footing in the non-life insurance sector in Pakistan. Investment Bank Limited, IGI Finex Securities Fax: 92-21-2416710 Fax: 92-42-5752338 Fax: 92-52-3258438 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] With an asset base of over 14 billion rupees, IGI Limited and IGI Funds Limited. Its shareholding in all three organizations has established IGI Insurance Islamabad Lahore (Hali Road Branch) Multan Insurance is one of the leading quoted insurance Mezzanine Floor, Razia Sharif Plaza, 16, Block A, Hali Road, C-2, First Floor, companies in Pakistan. as a key supporter of its partner companies. Further 90 Blue Area, Islamabad. Gulberg II, Lahore. Hassan Arcade, synergistic benefits are also being explored including Phone: 92-51-2277355 Phone: 92-42-5763840 Multan Cantt. 92-51-2273840 92-42-5763890 Phone: 92-61-4784401-2 Having been on the approved list of most Pakistani having common business premises and sharing of Fax: 92-51-2277356 Fax: 92-42-5763542 Fax: 92-61-4784403 and foreign banks operating in the country since its support services. E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] inception, IGI Insurance achieved another great Faisalabad Gujranwala milestone in July 2001, by becoming the FIRST In 2007, Mr. Saulat Said was appointed as the new Second Floor, Sitara Tower, Nasir Plaza, Bilal Chowk, Civil Lines, Adjacent to New Railway Station, general insurance company in Pakistan to obtain the CEO of IGI Insurance. He has extensive experience Faisalabad. G.T. Road, Gujranwala ISO 9002 certification for its entire operations from with the Packages Group having been the General Phone: 92-41-2629416 Phone: 92-55-3846425-26 Manager of Packages Limited, the flagship Fax: 92-41-2629415 Fax: 92-55-3257453 the certification body SGS Malaysia Sdn. Bhd. In E-mail: [email protected] E-mail: [email protected] 2003, the Company confirmed its commitment to company of the Group. Along with his work on a quality by successfully shifting to the new ISO multitude of projects, Mr. Said also headed the 9001:2000 standard. operations of Packages Lanka in the capacity of Managing Director. In August 2006, the Company took over the shareholding of American Express Bank in IGI Offering Peace of Mind Investment Bank (formerly known as First International We at IGI Insurance are dedicated to maintaining Investment Bank Limited - INTERBANK); with a the highest standards of integrity and sound dealing 35% shareholding, IGI Insurance is currently a major in our relationships with all stakeholders - shareholder in IGI Investment Bank. customers, intermediaries, employees, shareholders 06 IGI Annual Report 2007 IGI Annual Report 2007 07 INTRODUCTION and business partners. In every operation we seek greater focus on retail business aims to provide a to make a positive contribution towards community driving force for higher premium revenue. The activities and are committed to perform in a socially Company's proven ability to manage associated responsible manner. risks, along with its substantial risk absorption capacity, provides significant cushioning to make With technical expertise in the field of non-life inroads into relatively high-risk areas. insurance, IGI Insurance offers unparalleled advice and personalized services in all spheres of general IGI Insurance's overall investment