EFU Life Assurance Limited (EFUL) reported earnings per share (EPS) of PKR 29.07 for CY24, compared to PKR 20.65 in FY23. During the year, the company declared a dividend of PKR 15 per share, maintaining the same level as in CY23.
The company’s product portfolio includes life and health insurance, conventional and Takaful products, along with savings and protection plans. In 2024, EFU Life introduced several innovative financial solutions through branchless banks, telecom providers, microfinance institutions, and technology platforms.
The company also launched a wellbeing initiative under the brand WIN and introduced its first participating product within the Aasaan product range. EFU Life’s asset composition consists of 71% government securities, 19% shares and mutual funds, and 10% other investments.
However, the ongoing issue of sales tax on gross premiums is expected to have a negative impact on the life insurance business, potentially affecting business continuity and future dividend payments. The Securities and Exchange Commission of Pakistan (SECP) has set a target for insurance companies to achieve 30% of their premium composition through Takaful within five years. Currently, EFU Life’s portfolio comprises 35% individual life business, around 19% corporate life business, and approximately 13% corporate health business.
The management remains confident in meeting SECP’s target. Notably, in Khyber Pakhtunkhwa (KPK) and Balochistan, the individual life business has recently been converted into Takaful. As the sole Takaful provider in KPK, EFU Life expects this to positively contribute to its growth. Additionally, life insurance companies are required to raise their capital to PKR 3 billion by 2030. EFU Life’s management is optimistic about meeting this requirement.
The company is also in discussions with the government to reinstate tax credits to encourage a culture of saving. Looking ahead, the management plans to launch Voluntary Pension Schemes (VPS) and annuity solutions.
Important Disclosures
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