CELEBRATINGCELE LIFE FORFOR 20 YEARS ANNUAL REPORTORT 2016 CELEBRATING LIFE FOR 20 YEARS 2016 has been a special year for Jubilee Life, completing twenty years of successful protection of the financial future of over 5 million lives, including 2.8 million through micro insurance. Starting from modest beginnings, today, Jubilee Life has its footprints entrenched in every corner of Pakistan, having attained the position of the leading private sector life and health insurance company of Pakistan. This has only been attained through the trust and confidence reposed in us by our valued policy holders, the support of all our stakeholders, and the team work of our human resources. We dedicate the Annual Report 2016 to all our stakeholders who made this journey possible – our policy holders, partner banks, panel of hospitals, shareholders, and our human resources, whose endless efforts over these eventful years have made the impossible, possible. We reaffirm our commitment to our policy holders to provide them the highest levels of excellence and service, and look forward to celebrating many more anniversaries together. We invite you to join us in reading through our journey of excellence. CELEBRATING LIFE FOR 20 YEARS 20 Years’ Celebration Event ANNUAL REPORT 2016 www.jubileelife.com CELEBRATING LIFE FOR 20 YEARS Table of Contents 02 03. Vision, Mission & Core Values Profile 04. Timeline 06. Code of Conduct 07. Corporate Strategy 08. Company Information 12. Awards and Accolades 13. Rating of The Company 13 14. Profile of the Directors Our Company 20. Statement of Value Addition 22. Key Operating & Financial Data 25. Vertical Analysis 27. Horizontal Analysis 30. Directors’ Report 41 42. Financial Calendar Corporate 43. Auditors’ Review Report on the Statement of Compliance Governance 44. Statement of Compliance with the CCG 48. Shariah Advisor’s Report 49. Auditors’ Reasonable Assurance Report on Shariah Compliance 51. Management’ s Statement on Shariah Compliance 52. Auditors’ Report to the members 53 54. Balance Sheet Financial Data 56. Profit & Loss Account 57. Statement of Changes in Equity 58. Cash Flow Statement 60. Revenue Account 62. Statement of Premiums 63. Statement of Claims 64. Statement of Expenses 66. Statement of Investment Income 67. Notes to the Financial Statements 148. Statement of Directors 149. Statement of Appointed Actuary 151 152. Notice of Annual General Meeting Shareholders 156. Pattern of shareholding Information 162. Branch Network 167. Proxy Form www.jubileelife.com ANNUAL REPORT 2016 01 CELEBRATING LIFE FOR 20 YEARS 02 ANNUAL REPORT 2016 www.jubileelife.com CELEBRATING LIFE FOR 20 YEARS Our Vision Enabling people to overcome uncertainty. Our Mission To provide solutions that protect the future of our customers. Our Core Values • Teamwork • Integrity • Excellence • Passion www.jubileelife.com ANNUAL REPORT 2016 03 • The Company commenced business in • Launched Individual Life group life insurance on June 20, 1996 business operations from 1996 • Launched health insurance. from its offices in Islamabad and 1997 January 1, 2007. • Became the first ISO Karachi. • Branch network expanded to • Expansion of branch network 1998 9002 certified foreign cover main cities of Karachi, throughout Pakistan, life insurance company Lahore, and Islamabad. including Azad Jammu & Kashmir (AJK). 1999 in Pakistan. • Offered the First Credit • In less than six months, Shield. issued 61 group life insurance policies covering • The Company became a subsidiary of the Aga Khan Fund for over 12,000 lives. Economic Development, SA, Switzerland. • The Company was renamed as New Jubilee Life Insurance • Individual life new business Company Limited. 2002 recorded 26% growth, whilst • The Company renewal premium recorded strengthened its authorized • Launched Micro Life Insurance, aimed at providing insurance 47% growth. benefits to the classes who cannot afford such facilities. 2003 share capital base from • Signed up the first ever 2001 Rs.500 million to • The Company had its 2nd rights shares issue, increasing its Bancassurance agreement Rs.1 billion. • Expansion of branch paid up capital to Rs.627 million. in Pakistan. network to Quetta, • The Company had its first Jacobabad, Ghotki, rights shares issue. Mirpurkhas, Gujrat, 2004 Gujranwala, Sargodha and Kotli (AJK). • An internationally recognized Actuarial • Launched Micro Health Software Program was Insurance implemented. • The Company signed up • The number of banking bancassurance partners selling agreements with two 2007 bancassurance products more banking partners. increased to nine. 2009 2005 2006 2008 2010 2011 • Net written premium crossed the Rs.1 billion mark and was recorded at • All lines of business recorded Rs.1.2 billion. steady growth, with Individual Life new business recording • International financial crisis impacted 135% growth, Group Life the local stock markets and all equity • The Company achieved the position 39% growth, and Accident & investments. of the largest provider of Employee • The Company achieved the position of Health 29% growth. • The Company invested in an asset Benefit Services in Pakistan. the largest Bancassurance provider in Pakistan. management software for • The Company’s network of branches calculation of daily unit pricing. throughout Pakistan increased to 75. • “Jubilee Insurance” brand was globally synergized across Pakistan, Kenya, • Issuance of new policies on • The Company took cognizance of Uganda, Tanzania, Mauritius & Burundi. decentralized basis from Lahore and Corporate Social Responsibilities Rawalpindi was commenced, with through donations and time spent of • The Company was renamed as Jubilee real time connectivity with the Head the empolyees. Life Insurance Company Limited. Office. • The Company was awarded the “Best Insurance Company” in World Finance Insurance Awards Ceremony. • The Company won the prestigious “PSX Top 25 Companies Award” for 2014, in • The Government recognition of being a leading contributor to promulgated the new the growth of Pakistan, increasing value for the • The Company was awarded the “2nd FPCCI Insurance Ordinance, shareholders, and contribution to the society. 2000, envisaging Achievement Award” from the Federation of the higher requirements Pakistan Chamber of Commerce & Industry, in • Insured over 5 million lives through different for solvency margins. recognition of its outstanding services in introduction channels. 2000 of micro insurance services for low income people • The Company received the LOMA Excellence in life and health insurance. in Education Award, 2016. • The Company achieved an Insurer Financial • The Company won the “Brands of the Year Strength (IFS) rating of AA (Double A), with “Stable” • Jubilee Life became first life insurance company in the Award” for 2015-16. outlook, from JCR-VIS. private sector to be assigned an Insurer Financial Strength (IFS) rating of AA+ (Double A Plus), with a • The Company achieved the fastest Rs.1 Billion • The Company received the “HR Leadership Award” “Stable” outlook, by JCR-VIS. new contribution in Window Takaful in the Asian Leadership Awards ceremony hosted by operations and became the largest distributor the Asian Confederation of Businesses. • The Company launched Window Takaful Operations by introducing Individual Family Takaful, Group of Family Takaful products in terms of new • The Company’s efforts in respect of Corporate Family Takaful and Accident & Health Family Takaful contribution. Social Responsibilities were recognized by the products. • The Company wrote premium of more than Helpline Trust, and was awarded the “Putting the Rs. 4 Billion through Corporate Distribution Consumers First” Award. • The Company received the “Training Leader of the Year Award” from the Asian Confederation of channel, another first for any private sector • The Company was awarded the Life Office Business, during Asian Training and Leadership insurer. Management Association, USA (LOMA) Awards Ceremony. • Largest Panel Hospital network of around 400 Excellence in Education Award, 2013. • The Company became the Largest Health Insurer in hospitals serving customers across Pakistan. Pakistan. • The Company insured 2.7 Million lives for Micro insurance benefits. 2013 2016 2015 2012 2014 • The Company was awarded the “1st FPCCI Achievement Award” from the Federation of Pakistan Chambers of Commerce & • Launched first SMS based interactive service for insurance Industry, in recognition of its outstanding customers. services in life and health insurance. • Launched Pakistan’s first 24-hour Health Approval Center. • The Company received the “HR Leadership Award” in the Asian Leadership Awards • The Company was awarded the “3rd FPCCI Achievement Award” Ceremony hosted by the Asian by the Federation of Pakistan Chambers of Commerce and Confederation of Businesses. Industry (FPCCI) in recognition of its outstanding services in life insurance. • The Company became the largest life insurance company in the private sector, having its footprints in every corner of the country. CELEBRATING LIFE FOR 20 YEARS Code of Conduct Our Integrity guides our conduct towards our policyholders, participants, colleagues, shareholders and the general public. This principle constitutes the foundation of our code of conduct and ethics as under: • Compliance with law and the legal system is a fundamental principle • It is Jubilee’s objective to conduct business with reputable clients and for Jubilee. Every employee, agent and director shall obey the laws business partners who