Annual Report 2023

Your
Trusted
Partner

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www.adamjeelife.com
 Your
Trusted
Partner
Adamjee Life, backed by the corporate powerhouse Nishat Group,
stands out as the epitome of customer-centricity in the insurance
industry. With a strong commitment to understanding and meeting
the needs of our customers, Adamjee Life has established itself as
a trusted partner for individuals and families alike.

By leveraging the expertise of the Nishat Group, Adamjee Life is

able to offer innovative insurance solutions that provide peace of
mind and financial security to its policyholders. With a focus on
building long-term relationships and delivering exceptional
service, Adamjee Life continues to set the standard for
excellence in the insurance sector, making it the perfect choice
for those seeking a reliable and trusted partner for their
insurance needs.
What’s Inside
Table of
Contents
 Annual Report 2023 Annual Report 2023

Contents

01. STRATEGIC REPORT

1. Organizational Overview 5. Stakeholders Relationship and 5.8 Whistle Blowing Policy 92 2. IFRS Financial Statements
1.1 Company Overview 05 Engagment 5.9 Human Resource Management Policies including 92 2.1 Independent Auditor’s Report 112
1.2 Our Purpose 05 5.1 How ALIFE identifies it’s Stakeholders 54 Preparation of Succession Plan 2.2 Statement of Financial Position 118
1.3 Group Overview 06 5.2 Key Stakeholders 54 5.10 Health, Safety and Environment Responsibility 92 2.3 Profit & Loss Account 119
1.4 Vision, Mission & Values 08 5.3 Stakeholders’ Engagement 55 Policy 2.4 Statement of Comprehensive Income 120
1.5 Key Financial Highlights 10 5.4 Investors’ Relation 57 5.11 Business Continuity Plan 93 2.5 Statement of Changes in Equity 121
1.6 Strategic Objectives 11 5.5 Investor Grievances 57 5.12 Cyber Security Policy 93 2.6 Cash Flow Statement 122
1.7 Rating of the Company 12 5.13 Anti Money Laundering and Countering 93 2.7 Notes to and forming part of the Financial 123
1.8 Key Products and Customer Services 13 6. Sustainability & Corporate Social Financial Terrorism Policy Statements
1.9 Company Information 17 Responsibility (CSR) 5.14 Statement of Unreserved Compliance of 94 2.8 Statement of Appointed Actuary u/s 52(2) 199
• List of Board of Director 18 6.1 Sustainability 58 International Financial Reporting Standard (IFRS)
• List of Management 19 6.2 Corporate Social Responsibility 58 issued by the International Accounting Standard 3. Window Takaful Operations
• Board & Management Committees 20 Board (IASB) 3.1 Sharia Advisor Profile 200
• Addresses of Support Functions 21 5.15 Statement of Adherence with the 94 3.2 Statement of Compliance with the Sharia 201
• Bankers 22
02. CORPORATE GOVERNANCE International Integrated Reporting Framework Principles
• Head Office - Locations 22 (IIR) 3.4 Independent Reasonable Assurance
• Geographical Presence 23
1. Directors Profile 64 5.16 Statement of Directors u/s 46 94 Report to the BOD on Statement of
• Organizational Structure 24 Compliance with the Sharia Principles 202
• Management Profile 26 2. Chairman’s Review 68 3.5 Sharia Advisor’s Report to BOD 204
1.10 Events Highlights
03. FINANCIAL PERFORMANCE 3.6 Independent Auditors’ Review Report 206
31
1.11 Awards and Accolades 37 3. Directors Report to the Shareholders 70 AND REPORTING 3.7 Statement of Financial Position 208
on Company’s Affairs and Future 3.8 Profit & Loss Account 209
2. Internal & External Environment Outlook 1. Financial Performance Analysis 3.9 Statement of Comprehensive Income 210
2.1 Competitive Landscape and Market Positioning 38 1.1 Statement of Value Addition 98 3.10 Statement of Changes in Equity 211
2.2 PESTEL Analysis 40 4. Compliance with the Code of 1.2 Last Six Years Statement of Financial Position 99 3.11 Cash Flow Statement 212
2.3 SWOT Analysis 43 Corporate Governance 1.3 Last Six Years Statement of Profit & Loss 99 Notes to and forming part of the Financial 213
2.4 Internal Value Chain Analysis 44 4.1 Statement of Compliance with the Code of 84 1.4 Last Six Years Summary of Cash Flow 99 Statements
Corporate Governance 1.5 Last Six Years Capital Structure 100
3. Strategy and Resource Allocation 4.2 Independent Auditor’s Review Report to the 89 1.6 Dupont Analysis 101 04. OTHER INFORMATION
3.1 Strategic Objectives 45 members on Statement of Compliance with 1.7 Financial Ratios 102
3.2 Resource Allocation 46 the Best Practices of Code of Corporate 1.8 Horizontal Analysis 103 1. Geographical Presence 252
3.3 Strategies to Achieve Strategic Objectives 48 Governance 1.9 Vertical Analysis 108 2. Pattern of Shareholding 255
1.10 Segmental Analysis 109 3. Notice of Annual General Meeting 256
4. Risk Management 5. Governance Framework 1.11 Quarterly Analysis 110 4. Proxy Form 262
4.1 Risk Management Policy 49 5.1 Ownership/Shareholding structure 90 1.12 Share Price Analysis 111
4.2 Risk Management Framework 50 5.2 Formal Orientation Course for Directors 90
4.3 Risk Management Governance Structure 51 5.3 Directors Training Program 91
4.4 Risk and Opportunity Report 51 5.4 Policy on Related Party Transactions 91
5.5 Policy for Actual and Perceived Conflict of 91
Interest
5.6 Grievance Policy 91
5.7 IT Governance Policy 92
01
STRATEGIC
REPORT
 Annual Report 2023 Annual Report 2023

Organizational Overview
Company Overview
At Adamjee Life, we recognize the paramount importance of nurturing robust and
enduring relationships, rooted in trust, respect, and integrity. Guided by our
commitment to continual enhancement, we aspire to furnish our clientele with
optimal solutions to safeguard their future, today.

Adamjee Life Assurance emerged from a collaboration between

Adamjee Insurance and Hollard Insurance, two leading giants in the
insurance market. With a cumulative experience of 68 years
facilitated by the expertise of the Nishat Group, Adamjee Life has
garnered 14 years of profound market insight since its inception.
Our comprehensive product portfolio not only encompasses
saving and investment avenues but also prioritizes delivering
the protection our clients rightfully deserve.

Our Purpose
We are dedicated to serve as a dependable security net
for our customers, providing them with the assurance to
live life to the fullest, knowing their financial future is
safeguarded against unexpected events.

Our philosophy stems from thorough strategic

analysis, research, and understanding of our
customers' needs. This approach has
enabled us to articulate a distinct vision,
mission, and value proposition in the
market, reflecting our commitment
as a company to assist the public
in making informed and prudent
decisions to secure their
future.

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 Annual Report 2023 Annual Report 2023

NISHAT

TEXTILE ASSET INSURANCE BANKING

CEMENT AUTOMOBILES
MANAGEMENT

Group Overview HOSPITALITY

ENERGY
LIVESTOCK
AVIATION
PAPER
PACKING
& HOTEL & DAIRY PRODUCTS

The Nishat Group is recognized as one of

Pakistan's leading conglomerates,
commanding a strong presence across vital
economic sectors such as Textiles, Cement,
Banking, Insurance, Power Generation, Hotel
Business, Agriculture, Dairy, and Paper Products.

In addition to its diversified portfolio encompassing nearly

every facet of the economy, the Nishat Group proudly
upholds a heritage spanning over 70 years in the business
realm. Founded in 1951 by the esteemed Pakistani
entrepreneur Mian Muhammad Yahya, the group is presently Nishat Group is a Pakistani business conglomerate group. It has a diversified
under the leadership of Chairman Mian Muhammad Mansha. presence in various sectors. All its entities are run by professionals following best
business practices in compliance with national and international regulations.

6 7
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Vision
To be the most trusted insurance partner
Core Values
Value Creation
Create value in everything we do

Mission
Adhere to exemplary sales practices, best in class
Customer Focus
Always keep the customer’s interest in mind

product packaging and customer engagement

Openness
Foster a culture of trust and transparency

Respect
Promote mutual respect
and inclusiveness

8 9
 Annual Report 2023 Annual Report 2023

Key Financial Strategic

Highlights Objectives

Gross Premium Investment Income Earning Per Share

PKR
23.35 BN
PKR
18.06 BN
PKR
3.63 Attain profitability
in direct distribution
Capitalize strategic
partnerships to
capture digital
model
space

Benefits paid Investment

Create product

19.19 78.61
Provide excellence
PKR awareness and its
PKR in quality of sales
BN value proposition
BN and after sale
thus promoting
services
need-based sales

Equity and Reserves Profit After Tax Assets

4.42 0.91 86.09

Bring product innovation
PKR PKR PKR to strengthen long term
BN value for our customers
BN BN

Prepare for new

lines and territories
of business

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 Annual Report 2023 Annual Report 2023

Key Products
and Customer
Services
Rating of the
Company

Outlook: Stable
Rating Agency: PACRA
Rating Date: June 26, 2023

Insurer Financial Strength (IFS) Rating

12
A++
 Annual Report 2023 Annual Report 2023

Individual Life Products Group Life Products

With our commitment to becoming the trusted through which information about how our At Adamjee Life, our aim is to provide tailored We provide an overall exclusive package for
partner for the future financial security of our products address customers' saving, protection, plan-based solutions that empower each of our clients as per their corporate
customers, we take pride in offering tailored and investment needs can be accessed. corporations to thrive in today’s dynamic requirement, including
products designed to meet individual needs. business landscape. Through our
Guided by a steadfast principle of prioritizing our The second channel is our direct approach, comprehensive range of offerings, we ensure
customers, the Company has developed which offers a more personalized experience benefits not only for employees but also for
products that can be further customized to suit known as the agency model. Through this employers
each client's unique requirements. channel, we establish personalized connections
with our clients, allowing them the time to
Our individual products are categorized into two familiarize themselves with our offerings at their
Saving & Protection plans – Optional Riders – Conventional & Takaful options –
distinct distribution channels. The first is own pace. Similarly, through this channel, we Individualized dealings
Bancassurance – a mutually beneficial provide clients with products that can be tailored
partnership with Pakistan's leading banks. This to their specific saving, protection, and
partnership ensures easy accessibility for the investment requirements.
public, providing a wide range of avenues
Group
life
Saving & Protection plans – Insurance with Unit Linked Investment – Optional Assurance
Riders – Conventional & Takaful options – Loyalty Bonuses
Group
Saving

We provide an
overall exclusive Credit life
package for each plans
of our client as per
their corporate
requirement
including:

Group
Takaful
Pay
Continuation

Digital Products
Easy and convenient
Life is full of uncertainties and seldom turns out Pure Insurance
the way one expects it to be. Adamjee Life The future is always unpredictable no matter
intends for you and your loved ones to have how well you are set in life. Given today’s
peace of mind with the security to meet your ever-changing environment, you can never
future financial needs. We now present sorted truly predict the future but you can definitely
product options to choose, with our digital prepare for it better with a life insurance policy
products our customers now have the power to that provide investment with protection life
select the plan they want. cover.

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 Annual Report 2023

Family Sehat Corona Cover

Despite conscientious efforts to maintain With the Coronavirus Disease (COVID-19) still
health, unforeseen illnesses can strike when standing as one of the paramount health
least expected, catching one off guard concerns in our country, we offer Corona cover
financially. A robust hospital cash plan as a shield. This respiratory illness poses a
becomes indispensable in such scenarios, not significant threat, particularly to
only ensuring access to top-tier medical immunocompromised individuals or those with
services during times of need but also shielding chronic conditions. Despite precautionary
one's financial reserves measures advocated by health authorities, the
risk of contracting the virus remains
ever-present. In such critical times,
safeguarding against the financial ramifications
of COVID-19 becomes imperative.

Optional Riders Call Center Website &

Services Online Services

● Level Term Rider ● Interactive Voice Response (IVR) ● Need Based Plan Finder

● Spouse Rider ● Call Center representatives ● Online Claim Filing

● Accidental Death & Disability Rider ● SMS Services (8398) ● Online Appointment

● Monthly Income Rider ● Coverage Calculator

Company
● Waiver of Premium-Disability Rider ● Knowledge Center

● Waiver of Premium-Death Rider

● Critical Illness Rider

● Hospital Cashback Rider

Information
16
 Annual Report 2023 Annual Report 2023

Management
Manzar Mushtaq Jalal Meghani
Chief Executive Officer Chief Financial Officer & Deputy Managing Director

Ali Haider Absar Azim Burney

Director Bancassurance, Head of Direct Distribution
Corporate Sales and Marketing

Zehra Faiz Amin Nizar

Head of Human Resources Director Actuarial Services and Risk Management

Board Of Directors Sheraz Bukhari Athar Chaudhry

Head of Window Takaful Operations Director Information Solutions & Technologies
S. M. Jawed Imran Maqbool
Chairman Director
Dr. Bakht Jamal
Director Business Operations and Legal Affairs
Mian Umer Mansha Shahmeer Khalid Butt
Director Director
Statutory Positions
Muhammad Ali Zeb Naz Mansha
Director Director Arsalan Ahmed Khan Asif Mirza
Company Secretary Head of Compliance

Ahmad Alman Aslam

Director Samad Ali Naqvi
Head of Internal Audit
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 Annual Report 2023 Annual Report 2023

Management & Board Investment Committee

Committees Member Category

Mr. S.M. Jawed Chairman / Non-Executive Director

Mr. Muhammad Ali Zeb Member / Non-Executive Director
Underwriting, Reinsurance & Co-insurance Committee
Mr. Imran Maqbool Member / Non-Executive Director
Member Category Mr. Manzar Mushtaq Member / Chief Executive Officer
Mr. Jalal Meghani Member / Chief Financial Officer
Mr. Umer Mansha Chairman / Non-Executive Director Mr. Amin Nizar Ali Member / Head of Actuarial & Risk
Mr. Manzar Mushtaq Member / Chief Executive Officer Mr. Muhammad Amir Secretary / Senior Manager Finance
Mr. Amin Nizar Ali Member / Head of Actuarial & Risk
Dr. Bakht Jamal Member / Head of Operations
Mr. Farrukh Kidwai Secretary / Head of Underwriting Audit Committee
Member Category
Claim Settlement Committee
Mr. Shahmeer Khalid Butt Chairman / Independent Director
Member Category Mr. S.M. Jawed Member / Non-Executive Director
Mr. S.M. Jawed Chairman / Non-Executive Director Mr. Muhammad Ali Zeb Member / Non-Executive Director
Mr. Manzar Mushtaq Member / Chief Executive Officer Mr. Samad Ali Naqvi Secretary / Head of Internal Audit
Mr. Jalal Meghani Member / Chief Financial Officer
Mr. Ali Haider Member / Head of Distribution Share Registrar
Mr. Kashif Fareed Ahmed Secretary / Head of Claims CDC Share Registrar Services Ltd. CDC House, 99-B, Block B, SMCHS Main Shahrah-e- Faisal,
Karachi 74400 Phone No. (92-21) 111-111- 500
Fax No. (92-21) 34326031
Risk Management & Compliance Committee Email: [email protected]
Member Category
Statutory Auditors of The Company
Mr. Muhammad Ali Zeb Chairman / Non-Executive Director Yousuf Adil Chartered Accountants
Mr. Manzar Mushtaq Member / Chief Executive Officer Address: Cavish Court, A-35, Block 7 & 8 KCHSU, Shahra-e-Faisal, Karachi-75350, Pakistan
Mr. Jalal Meghani Member / Chief Financial Officer
Mr. Amin Nizar Ali Member / Head of Actuarial & Risk Appointed Actuary
Mr. Asif Mirza Secretary / Head of Compliance Alchemy Associates (Private) Ltd.
Address: 4th Floor, Central Hotel Building, Civil Lines, Mereweather Road, Karachi, Pakistan.

Ethics, Human Resource, Remuneration and Nominations Committee

Shariah Advisor
Member Category Mufti Muhammad Zubair Usmani

Mr. Shahmeer Khalid Butt Chairman / Independent Director Legal Advisor

Mr. S.M. Jawed Member / Non-Executive Director Asad Iftikhar
Mr. Muhammad Ali Zeb Member / Non-Executive Director Address: Office no. 505, Commercial Trade Center, Block 8 Clifton, Karachi.
Mr. Umer Mansha Member / Non-Executive Director
Mr. Manzar Mushtaq Member / Chief Executive Officer Bawaney & Partners
Ms. Zehra Faiz Secretary / Head of Human Resource Address: 3rd & 4th floor 68-C, Bukhari Commercial Area, DHA, Karachi

20 21
 Annual Report 2023 Annual Report 2023

Our
Bankers Geographical
Presence
• Al Baraka Bank (Pakistan) Limited • MCB Bank Limited
• Askari Bank Limited • MCB Islamic Bank Limited
• Bank Alfalah Limited • Mobilink Microfinance Bank Limited
• BankIsIami Pakistan Limited • National Bank Of Pakistan
• Dubai Islamic Bank Limited • NRSP Microfinance Bank Limited
• Faysal Bank Limited • Samba Bank Limited
• Finca Microfinance Bank Limited • Habib Bank Limited
• Silk Bank Limited • Habib Metropolitan Bank Limited
• Telenor Microfinance Bank Limited • Khushhali Bank Limited
• U Microfinance Bank Limited • United Bank Limited
• Standard Chartered Bank (Pakistan) Limited

Address
HEAD OFFICE
Adamjee Life Assurance Company Limited,

Major
3rd & 4th Floor, Adamjee House,
I.I Chundrigar Road, Karachi, Pakistan.

REGISTERED OFFICE
Adamjee Life Assurance Company
Limited, Office # 505, 5th Floor,
Islamabad Stock Exchange Building,
Blue Area, Islamabad, Pakistan.

KARACHI SAHIWAL KAROR LAL ESAN GUJRANWALA

LAHORE VEHARI KHANEWAL JAMPUR
ABBOTTABAD BUREWALA PAK PATTAN FATEHPUR
SKARDU DUNYA PUR FAISALABAD MIRPURKHAS
KOTLI MUZAFARGARH SARGODHA HALA
MULTAN D.G. KHAN SANGLA HILLS NAWABSHAH
BAHAWALPUR BHAKKAR SHEIKHPURA SUKKUR
LAYYAH OKARA JHANG SHAHDADPUR
BAHAWALNAGAR KOT ADDU JHELUM SAKRAND

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 Annual Report 2023 Annual Report 2023

Organizational Structure Underwriting & Reinsurance

Committee

Shariah Advisor

Board of Claims Committee

* Shariah Compliance Officer
Directors
Risk Management &
Board’s Audit Committee
Compliance Committee

Board's Ethics, HR, Remuneration * Chief Information Security

CEO
& Nomination Committee Officer. (CISO)

Board’s Investment Committee Company Secretary

Head of Internal Audit Head of Compliance

CFO & DMD * Head of Risk Management

Director Information Solutions Director Actuarial Services Financial Controller

& Technology

Director, Business Operations Director Bancassurance, Corporate Head of Window Takaful

Head of Human Resources Head of Direct Distribution
& Legal Affairs Sales and Marketing Operations

* Head of Risk Management role is assigned to Director Actuarial Services, and the role of CISO is assignedto Director, IST.
** Shariah Compliance Officer administratively reports to Head of Compliance Sr. Manager General Affairs
*** Company Secretary administratively reports to the CFO & DMD
24 25
 Annual Report 2023 Annual Report 2023

The Management

Ali Haider
Manzar Mushtaq Director Bancassurance,
Corporate Sales and Marketing
Chief Executive Officer

Mr. Manzar Mushtaq is an alumnus of Clark University, moved onto hold the position of Chief Executive Officer Mr. Ali Haider is an accomplished management organizations, Mr. Haider has extensive experience and
USA. He is an experienced business leader, especially at Habib Metropolitan Financial Services Limited in professional with more than twenty years of experience expertise in areas of business & operations, developing
within the financial industry. Mr. Mushtaq has held many 2013 and served 8 years in the same company. in various leadership roles within the insurance industry multi-faceted and building teams to reach targeted goals
leadership roles over the span of 19 years of his career. Previously, he was also associated with Security in Pakistan and the UAE. Known for turning around pertaining to Health & Life Insurance.
From 2011 to 2013, he served as the Managing General Insurance Company.
Director/CEO of Adamjee Insurance Company. He then

Jalal Meghani Dr. Bakht Jamal

Chief Financial Officer and Deputy Director Business Operations and
Managing Director Legal Affairs

Mr. Jalal Meghani is a Fellow member of the Institute of management, organizational development, and
Chartered Accountants of Pakistan (FCA) and is also a planning in diverse business sectors, including 14 years Dr. Bakht is an accomplished management professional and Head of Window Takaful Operations with State Life
Fellow member of the Institute of Chartered Secretaries in Adamjee Life. He also spent 2 years in a senior who brings with him twenty-seven years of national and including its Dubai office, Dawood Family Takaful, and
and Managers (FICS). Mr. Meghani has an overall management position overseas in Sri Lanka and East international working experience in the Life Insurance, IGI Life respectively. He has completed his MBBS,
experience of more than thirty years in financial Africa. Family Takaful, and Medical Profession. He was Medicine, and Surgery from Sindh Medical College,
previously affiliated with the largest/oldest public sector Karachi. He is a Master Fellow of the Life Management
life insurer and youngest family Takaful operator in the Institute (FLMI/M) from Life Office Management Institute,
capacity of Head of Operations, Chief Operating Officer, USA.

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 Annual Report 2023 Annual Report 2023

Amin Nizar Ali Zehra Faiz

Director Actuarial Services &
Head of Human Resources
Risk Management

Mr. Amin Nizar is an accomplished management EFU Health Insurance Ltd. as the Head of the Actuarial Zehra Faiz has 21 years of local and international Australia. Zehra started her career in 2002 in Australia
professional who brings with him over twenty-four years and Strategic Planning Department, EFU General experience in HR, business operations, sales and with telecommunication sector. Prior to this she was
of extensive experience in the insurance industry. He is Insurance Ltd. as Executive Vice President, and State marketing. Her qualifications includes Master degree in employed as Director HR in Alsons Group. She was also
a fellow of the Society of Actuaries, USA, and has Life Insurance Corporation of Pakistan as Assistant English Literature from Punjab University, post graduate employed with Adamjee Insurance Company Limited as
pursued his Bachelor of Commerce from the University General Manager Actuarial. study in Information Systems Management and Human Head of Human Resources.
of Karachi. He was previously employed with Allianz Resource Management from University of Canberra,

Athar Chaudhry Absar Azim Burney

Director Information Solutions and Technologies
Head of Direct Distribution

Athar is an accomplished management profession with Mr. Athar held key leadership positions at Packages
who brings with him over 23 years of extensive Limited, IGI Group of Companies, Premier Insurance, Mr. Absar Azim Burney holds an undergraduate degree players in insurance market in Pakistan and United Arab
experience including leadership roles. He holds a and Alfalah Insurance, where he demonstrated in International Relations from Karachi University. He Emirates where he served as Country Head for Adamjee
Master's degree in Computer Science specializing in outstanding leadership and expertise in IT governance, has over 35 years of experience in operational and sales Insurance Company Limited. Before joining Adamjee
Network Management & Design, as well as a Bachelor's program management, cybersecurity, and digital management. He has started his career with Shell Life he was working as Chief Executive Officer of
degree in Computer Science specializing in Software transformation projects. Pakistan the then Pakistan Burmah Shell Ltd. After that Linchpin Cluster (Private) Limited, Pakistan a
Engineering. Athar is certified as a Microsoft expert moved to insurance industry, worked with leading management consultancy firm.
(MCTS, MCSE) and holds credentials in ITILv3 and ISO
9000, underscoring his dedication to quality and industry
best practices.

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 Annual Report 2023

Shahriah

Dr. Mufti Muhammad

Zubair Usmani
Shariah Advisor

Dr. Muhammad Zubair Usmani is a qualified and one of various international journals. He has delivered
the most experienced Shariah Scholars in the Islamic research based lectures / presentations at different
Banking Industry. He did his Shariah graduation (Fazil national and international seminars, forums, and

Events
Dars-e-Nizami) & Takhassus Fil Fiqh (Mufti i.e. conferences and has been associated with several
Specialization in Islamic Fiqh & Fatawa) from Jamia Dar financial institutions; he has also served as a member of
ul Uloom, Karachi. He has done Masters in International Shariah Board of State Bank of Pakistan. Currently he is
Relations and Doctorate (PhD) in Islamic Finance from associated with HBL as a Chairman Shariah Board,

Highlights
University of Karachi. Dr. Zubair Usmani is author of MCB Arif Habib Islamic Fund as a Shariah Board
several books including related to Accounting & Auditing Member, Adamjee Life Assurance Company Ltd.
for Islamic Financial system, comparative study Window Takaful operations as a Shariah Advisor,
between Islam and Christianity and Ijarah (Islamic Askari Life as a Shariah Advisor, and Pak Qatar Asset
Leasing). His research papers have been published in Management as a Shariah Advisor.

Sheraz Bukhari
Head of Window Takaful Operations

Mr. Sheraz Bukhari, Cert CII, possesses a passion for Throughout his career, he has collaborated with
technology and extensive expertise in cultivating and prominent local and international entities, including
overseeing both traditional and digital distribution Adamjee Insurance (AICL), Century Insurance (Lakson
channels to enhance business growth and profitability. Group), American International Group (AIG), Marsh &
With nearly two decades of professional experience McLennan, AON PLC, and Procter & Gamble Pakistan
spanning Pakistan and the Middle East, he has primarily (Gillette).
focused on the insurance sector, serving in roles such
as an Insurer, Insurance Broker, and Insurtech (B2B
and B2C) solution provider.
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 Annual Report 2023 Annual Report 2023

Events Highlights

Adamjee Life with

Habib Metro bank Independence
achieves milestone day celebration
of 250+ million

Adamjee Life
Iftar Dinner
Campus
Drive 2023

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 Annual Report 2023 Annual Report 2023

Blood Donation Drive Indus Hospital’s

Dr. Bari Visit

Annual
Fire drill
Joining Hands
with NOWPDP
& Connect Hear

Pakistan Insurtech Summit

Participation

34 35
 Annual Report 2023 Annual Report 2023

Awards &
Celebrating Pinktober

17th Consumers
Choice Awards
2023

Best Website of The

Year Award at
Pakistan Digital
Awards

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 Annual Report 2023 Annual Report 2023

Internal and External

Environment
Competitive landscape and market positioning

Bargaining Power The Threat Rivalry between

Threat of New Bargaining Power of Substitutes Existing
Entrants of Suppliers
of Buyers Threat that the suppliers The substitutes Companies
New entrants in an industry Powerful and influential make the most margins and perform the same or
bring innovation but put a limit buyers can also squeeze leave little room for other similar function to that The intensity of rivalry among
to profitability within the the margins for the firm. partners in the supply chain to of an industry’s product existing players can
industry. make money. but by different means. significantly limit the profitability
proposition for the firm.

As an insurance company, Life insurance products ALIFE has a very strong and
The risk of new entrant is medium to This is the most powerful threat ALIFE considers its are similar within the coherent bonding with its
low. The upfront cost involved in the as Customer can exert distribution partners, industry and therefore distribution channels. ALIFE is
acquisition of a new business is enormous force and influence especially institutional so many substitutes are also expanding the network of
very high. Further, a long-term view the pricing of the product. distribution channels (banks), available to the distribution channels and is
is required to make a life insurance as suppliers. These suppliers customers. ALIFE more focused towards the
business operative and There are multiple alternatives have historically leveraged addressed this threat by hybrid models.
self-sustaining. for procuring products and their position to influence focusing on customer
services that are available in the customer choices when it service, generating The main goal of the Company
The only chance is for financial market. Customers have the comes to buying insurance. better returns on is to establish a strong and
institutions to branch out and invest right to demand lower prices ALIFE has reduced the risk by policyholders’ sustainable direct sales
in the insurance business. This and higher product quality. strengthening the partnership investment and channel.
phenomenon is also seconded by Large corporate clients paying with the distribution channels, enhancing overall New and innovative products
the fact that bancassurance millions of rupees in premiums focusing on hybrid models customer experience. and sustainable & steady
business is the key component of have bargaining power too. With (where the customer dealing returns of policyholders’ fund
life insurance business and hence the online emergence of social lies with ALIFE), offering would also help to manage this
the new entrant has to have media, and instantaneous competitive returns to risk.
collaboration with some bank in access to awareness of policyholders and constant
order to have success. However, coverages, pricing, and and consistent policy servicing
both the banking and insurance services, today’s customer to the customers.
industries are comparatively demands more personalized
consolidated industries with fewer attention and care for the
players. premiums paid. To meet these
expectations, ALIFE has always
ensured that the product
features for which the customer
is paying should justify its cost
and also the prices are market
competitive.

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Macro Environmental Analysis PESTEL Analysis

PESTEL is one of the strategic tools used by the management for business analysis on a broader
aspect. This is applied when the organization intends to expand the business.

Political Factors
Economic
Factors
Political stability is vital for
general well-being of economy The economy of Pakistan played
and growth of the industry. The DOLORrole
an enormous SITinAMET
the growth
Political law and order situation and and survival of insurance Social Factors
• Stability & Attitude of the

01
political unrest dictates the industry. Low economic growth
Government
• Tax Policy direction of equity and fixed rate, unemployment, inflation,
• Support for Legislation & income markets and hence the Rupee devaluation, and high
Implementation worth of policyholders’ Shared beliefs and attitudes of
interest rates affect the
investments. consumer’s ability to buy and to the population play a great role in
invest. During the first half of CY the success of the insurance
Economical 2023, overall macroeconomic industry. There are some
traditional, cultural, and religious
02
• Growth of Economy condition was quiet gloomy. The
• Unemployment delay in resuming the IMF causes involved behind the
• Other factors affecting purchase choice of the
Economy program was a significant factor
affecting the economy and policyholder. Our products are
market dynamics. However, post designed to benefit the
Environmental June 2023, following the Standby policyholders by not only offering
Factors Arrangement with IMF and competitive returns but also by
Social inflows/ rollovers from friendly mitigating the risk of the

PESTEL 03 • Demographic variables

• Cultural & ethical aspects
• Impact of Media According to the Global Climate
countries alongside the loan
agreement with Asian
unforeseen. We believe in
transparency and value the trust
Development Bank (ADP) and of our customers.
Risk Index, Pakistan is ranked as
World Bank had augmented the
Analysis the fifth (5th) most vulnerable
forex level. The average inflation
country to long-term climate
risks. The country has was 31% in 2023 as compared
to 19% as recorded in 2022. To
04
Technological experienced extreme weather,
• Use of Internet catastrophic floods, poor air counter escalating inflationary
• Analytics and other tools quality index, pollution, high pressures, SBP raised the policy
carbon emission rates (GHG rates by 600 basis points to 22% Technological
emission is 489.87 as per during the year. Factors
Nationally Determined
Contributions (NDC) 2021).
A large customer base of the Technological developments

05
Environment change the mind set of society
• Management and operations Company is associated with
• Claim settlement agriculture. Any hostile weather and the ways of doing business
drastically. The customer wants
condition in the Country, also Legal Factors access to quick and in real time
puts a certain pressure on the
business volume of the information and preferably on his
Company. mobile phone. The Company is
From the plantation drive to A balanced and vigilant legal keen to provide the customers a

06
Legal real time experience. ALIFE is
automation of the processes to environment is vital for industry to
• Regulatory Bodies very focused on achieving
• Supporting Institutions encouraging paperless grow and to ensure ‘ease of
environment, the Company doing businesses’. There are operational excellence through
always strives to contribute some outstanding issues the use of innovative
positively towards the however, like sales tax on technologies in its processes
environment insurance and reinsurance, etc. and sales.
on which support from the
regulatory institutions is critical.

40 41
 Annual Report 2023 Annual Report 2023

Critical Challenges and the SWOT Analysis

Company's Response

Critical Challenges ALIFE Response Strengths Weaknesses Opportunities Threats

Designated teams to implement changes that are

Increasing required by law.
Regulatory
Changes Where the proposed regulatory changes may hinder
the growth of the industry, ALIFE also takes up the • Fastest growing • Greater • Huge untapped • Macroeconomic
matter with IAP and SECP insurance dependence on market due to challenges like
companies in the bancassurance low insurance currency
private sector. distribution. penetration. devaluation,
ALIFE has engaged with a professional consultant Inflation and
IFRS 17 for the completion of phase 3 announced by SECP • Strong and • High proportion • High cellular unemployment.
to ensure its timely submission. reliable business of unit linked penetration can
partners. products. be utilized to • Legal and
enhance reach regulatory
• Diversified • High agents turn and digital challenges like
product portfolio. over. experience. Imposition of
Constant monitoring of returns and where
sales tax and
Economy and applicable, guide the customer to switch between
• Part of a • Expansion of withdrawal of
investment returns funds (equity to low risk or vice versa) to maximize
conglomerate distribution income tax
the returns
family of NISHAT channels within incentives.
group. and outside
Pakistan. • Cybersecurity.
• Strong financial
position, • More pull for • Climate and
experienced family takaful geopolitical
human capital products due to situation.
and strong religious beliefs.
reinsurance
backing.

42 43
 Annual Report 2023 Annual Report 2023

Internal Value Chain Analysis Strategy and Resource Allocation

• Equal opportunity employer.
• Focus on employee development and training.
Short, medium and long term strategic objectives
• Identify critical changes that should be made to the performance appraisal
system and training to accommodate a more remote workforce.
• Conducive work environment to keep employees motivated.
• Effective employee grievance management. Term Strategy KPI

• Reporting is in compliance with regulatory framework and issued on a • Increase market share in • Gross premium growth
timely and accurate basis.
• Tax compliance. group term life/ credit life • Group business/ Total
Secondary

• Integration between actuarial and finance department for process

through leveraging market Premium (%)
Activities

improvement, pricing and valuation.

• Technical trainings for finance and actuarial team. Short term penetration of the group • No. of sales training held
companies. during the year
• Risk identification, categorization & mitigation plan. • Improve the quality of training • No of complaints / total
• Compliance with Code of Corporate Governance, AML and other regulatory
requirements of SECP. of agents. number of policyholders
• Implementation of policies and standard operating procedures.
• Training and awareness sessions. • Improve pre and post sales (%)

Valu
• Strong governance through Risk Management and Compliance Committee. customer services.

e Cr
• Data integrity, data security & business continuity.
• Customer support APP. • Geographical expansion within • Increase size of quality sales
• Focus on paperless environment. and outside Pakistan. force

eatio
• Implementation of business intelligence dashboards.
• In-house built software with competent support to end users. • Expansion in direct sales force • Ratio of cost to premium
(Agency). • No. of products launched

n
• More reliance on technology to during the year to be sold
reduce cost and increase from digital platform.
Primary Activities efficiency. • Number of Insurance
• Use digital platform to distribute awareness or CSR programs
Medium term
products by embedding digital per annum.
• Wide variety of products for conventional insurance and takaful
that covers variety of classes and age groups of society. mobile wallet & bring constant • Earnings Per Share (EPS)
Product development • Promote innovation in product design.
• Products available on digital channels. innovation in products and • Dividend payout ratio
• Design more customer centric products.
services. • Market value per share
• Extensive branch network with further expansion plan.
• Experience and competent sales force. • Strong and self – sustained (increase in net worth of the
• Performance marketing for online sales generation using social media.
Marketing, direct and corporate distribution shareholders)
Valu
• Marketing, public relations & corporate communication and advertising.
sales and • Update market messaging to reflect customer sentiment and product positioning.
channels. • Dividend yield
• Adjust marketing mediums (e.g. print, mail, digital etc.) and expected impact
distribution
• Continuous Drive for creating
e

analysis to align with spend and return.

• Update and align marketing function to new needs, which must consider
C

messages, campaigns, mediums, ways of working, capacity and talent. more awareness and value
reatio

• Benchmarking of entity level risk to underwrite policies. proposition of insurance

• Carry a well-diversified portfolio to spread the risk.
Underwriting • Evaluation of risk profile according to the policy. products.
n

• Build technical capability in underwriters to recognize the developments in risk manage-

ment techniques and technology changes that may bring efficiency and accuracy.
• Adding value to stakeholders.
• Review policy administrative processes to handle the policy and identify opportunities to • Consistent and constant
Policy administration
automate and where necessary, reengineer the process to increase efficiency and
decrease costs.
technological innovation.
• Understand the consumer experience and the ‘moments of truth’ during the
maintenance of their policy.
• Explore and develop automated claims processing capabilities, with focus on • Become a most trusted • Strong persistency ratio
developing operating model and staff capabilities to support a more automated
Claims Management environment. partner. • Loyalty bonus payouts
• Rigorous evaluation to avoid payments against fake claims. Long term • Create a strong market • Market share
• Establish transparent complaints and grievance function.

• Engage professional services to handle investment and generate returns that

position.
Asset Investment outperform the market. • Become a leading market
• Invest in diversified portfolios ranging from lowest risk securities to real estate, to
Management benefit from various opportunities while mitigate the corresponding risks. player in the sector.
• Assess investment strategies given the volatility in returns and shifting views of
economic recovery patterns.
• Dedicated hotline and WhatsApp for customers.
Customer Experience • Focus on digital means to make the process quick and effective.
• Dedicated team to handle complaints on priority basis.

44 45
 Annual Report 2023 Annual Report 2023

Resource Allocation Type of Resources Description of Utilization

Physical or manufactured capital refers to fixed assets of the

Resource Allocation to Achieve Strategies Company like:
- Land and building
Resources are a significant investment for most businesses. Therefore, organizations strive to utilize them optimally
- Furniture and fixtures
for profitability and sustainability. Resource allocation is a process of planning, managing, and assigning resources
- Motor vehicle
in a form that helps to reach the Company’s strategic goals. A well thought out placement of resources will generate
- Computer and equipment
better results and will add to the bottom line of the Company.
Physical Capital. All of the physical assets of the Company are efficiently utilized
Companies that actively and routinely assess the use of their resources and where they create the most value usual-
for the purpose of business and adequately covered against
ly find themselves in a better position to improve operations and deliver higher ROI.
potential threats through insurance coverage.

Physical assets are managed through Fixed Assets Register

with each asset assigned an identification tag. Further, these
Type of Resources Description of Utilization assets are subject to both planned and surprise physical
verification as well, which is conducted from time-to-time basis.
Financial resources are used to finance the activities and
operations of the Company and Company has adequate
protocols to utilize them efficiently. Intellectual Capital is defined as all knowledge within an
organization, which has the potential to create value when
Cash and liquidity management: applied in line with the mission, vision and goals of the
ALIFE has very strong controls over fund management. The fund organization. It refers to intangible capital.
position is prepared on daily basis and reviewed by the CFO.
ALIFE has managed this capital in following ways:
Company ensures that there are adequate funds to pay-off all - Ensuring and analyzing all critical processes and creating a
Intellectual Capital.
the policyholders’ payments (like surrenders, maturities, claims, standard operating procedure to handle it. A well-defined set
refunds etc.) and other payments (including salaries, of processes that are applied consistently helps improve the
commission, vendor related payment, etc.). cost and efficiency of the operations.
- Creating the climate in which knowledge workers can best
Financial The surplus of admissible assets to total liabilities ratio of the perform.
Resources. Company amounts to Rs. 4 billion. Optimizing the value creation, extraction and release cycles
for new and existing initiatives.
Fund and Investment Management:
Social capital is important because it represents the productive
benefits of sociability. The importance of social capital cannot be
ALIFE ensures that no idle funds are available at the day end.
understated since it relates to every benefit of living in a society rather
For better fund management and enhanced returns, the
than as a hermit. Social capital has been described as both a glue
Company has entered into an outsourcing arrangement with
and lubricant – a glue that holds societies together without which
MCB Funds, which manages its funds while ensuring the returns
collaboration and cooperation would not be possible; and a lubricant
are not less than the agreed benchmarks.
that facilitates getting things done.
The Management Investment Committee is responsible for
monitoring the performance of investments and a review report Social capital involves the shared values, norms, trust, and belonging
on fund’s performance is also present to Board’s Investment that makes social exchange possible. Our society, economy,
Committee on quarterly basis Social and institutions, and political system could not exist without social capital.
Relationship
Human Capital Management is defined as the process of Capital. ALIFE has for its vision to become the most trusted brand over the
acquiring, training, managing, and retaining employees to years to come. In order to achieve that, ALIFE has a very clear policy
contribute effectively to the processes of the organization. In to maintain its reputation and attitude to dealing with customers and
simpler words, upgrading the existing skills of an employee and other stakeholders. ALIFE believes in value creation and bonding
extracting the best out of him/her refers to human capital with its customers. Relationships with other stakeholders like
Human Capital. management. The Company has employed over 1800 reinsurers, distributors, banks, vendors etc. are also based on this
employees, and it is very focused on their growth and constant long-term vision.
training and development. ALIFE believes that the more skillful
the employees are, the more refined the results would be. ALIFE ALIFE has been involved in various CSR activities ranging from
has also gone into an extensive succession planning program. education to environment (the details can be found in CSR section of
this report).

46 47
 Annual Report 2023 Annual Report 2023

Type of Resources Description of Utilization Risk Management

Natural capital is the world's stock of natural resources, which Overview
includes geology, soils, air, water and all living organisms. Some
natural capital assets provide people with free goods and Insurance business is exposed to various risks and therefore, ALIFE believes that a strong, effective and embedded
services, often called ecosystem services. All of these underpin Risk Management Framework is crucial to maintaining successful business operations and delivering sustainable,
our economy and society, and thus make human life possible. long-term profitability.
Natural Capital.
ALIFE commits to preserve natural resources. It has taken the
following step to contribute towards its preservation:

- Moving towards more paperless processes and archiving;

- Installing and utilizing more energy efficient equipment.
Risk Management Policy

Strategies to Achieve ALIFE has implemented a policy for Risk Management which clearly defines the objective, roles
and responsibilities for risk management, core insurance risks, financial risks, operational risks and

Strategic Objectives
strategic risks. A related objective of risk management policy is to implement the requirements
stipulated in the Code of Corporate Governance for Insurers, 2016. The Code defines several categories
of risk that the insurer must manage, both strategically and operationally. This Policy forms the basis of
Strategies in place or intended to be implemented to achieve those embedding Risk Management within the culture of the Company. The key objectives of this Policy are:

strategic objectives - Establish clear objectives, identify and evaluate the key risks, define risk appetite and tolerance limits, and
apply suitable risk responses including risk mitigation where needed;
ALIFE is very focused toward achieving the long and short-term objectives that will feed into its strategies. The
expansion of direct and other distribution channels will eventually translate into enhanced market share. The product - To ensure that the risk management system within the Company is suitable and proportionate to risks the
development team is working in tandem with the sales team to ensure that products are not only customer centric Company is exposed to;
but there must be some innovative element to it that will make it ever more lucrative to customers. ALIFE employs
well-versed, energetic and competent teams at both front and back ends to ensure the quality of outcome. - Enable the Company to meet its obligations and objectives and to have increased knowledge and understanding
Technology is always a win in the current environment where use of technology is common and accessible to the of exposure of risk;
masses. ALIFE promotes use of technology for reduction of cost of operations and for bringing in more efficiency to
the operations. - Assign responsibilities for effective risk management and monitor the effectiveness of the system of risk and
internal control management;

- Reduce the consequence and/or likelihood of potentially damaging risks by regular reviews of strategies for risk
prevention and/or by transferring the impact of potentially damaging risks to third parties e.g. by re-insurance and
other financial arrangements;

- Raise awareness of the need for risk management by all those connected with the organization’s delivery of
service; and develop a strong risk culture articulated by effective Enterprise Risk Management (ERM) with
involvement of senior leadership and embodied by management at all levels through governance structure and
risk management processes.

48 49
 Annual Report 2023 Annual Report 2023

Risk Management Framework Risk Management Governance Structure

The Enterprise Risk Management (“ERM”) framework forms the overarching framework for management to deal The governance structure of the Company is defined in the following diagram:
with the various risks ALIFE may encounter, as well as their tracking and monitoring. This also ensures that the
Company has processes in place by which we assess the risks that we are exposed to, both on a current and
forward-looking basis.

ALIFE has adopted a framework for the risk management, which involves a continuous process to identify, analyze,
evaluate, and treat loss exposures and monitor risk which are documented within the risk register, which captures
the material risks that the Company faces. Identified risks are then managed through the application of a set of
BOD 01
policies.

The methodology and process of handling risk is as follows:

Management’s Risk
Management &
02 Compliance Committee
Risk Identification (“MRMCC”)

1 Risks faced by the Company are identified and documented and further actions are
formulated. Risk management function maintains a risk register that consolidates all risks
identified during the risk identification activity
Risk
Management
Function
03
Assessment & Measurement
2 Risk assessment includes consideration of the likelihood of a risk occurrence and the
impact of a risk on the achievement of the Company’s objectives.

04 Risk Champions

Risk Response and Action

3 For each identified risk the Company should establish an appropriate “response” option
in order to optimize risk management.

Risk Owners 05
Monitoring
4 Risks are monitored continuously to ensure that deviations are logged, reviewed, owned
and effectively mitigated. Monitoring of risks is carried out on regular basis. Any breach
of Risk Appetite and Tolerance Limit is escalated to the appropriate level of management
and committees.

Risk and Opportunity Report

Reporting
5
2 Results of the Risk Management Process
ment in their capacity
management
within
managed approved
of oversight
in their capacity
within risk appetite
approved
Process are
of oversight
riskofappetite
are reported
to provide
the company.
reported to
assurance
to provide
of the company.
to the
the Board
assurance
Board and
that risks
andsenior
thatare
seniormanage-
being
risks managed
are being
Risk

Underwriting and Insurance Risk

Mitigation

A detailed policy is in place that

Insurance companies face risks through the contracts they encapsulates the risk mitigating strategies
underwrite. This risk refers to the loss and potential including
damage due to underwriting risk and insurance activities. - Pricing reviews and repricing
- Product design and structure
Underwriting and insurance risks may affect the solvency - Stringent underwriting
and profitability of the insurer in an adverse manner. - Customer retention
Underwriting and insurance risk is further classified in - Reinsurance cover
three broad categories namely:
- Biometric risk (mortality, lapse, anti-selection, etc.)
- Catastrophe risk and
- Pricing risks

50 51
 Annual Report 2023 Annual Report 2023

Risk Mitigation Risk Mitigation

Reserving (Provisioning) Risk - Annual review of effectiveness of Liquidity Risk - The Insurance Rules, 2017 and ALIFE'S
Reserve risk is the risk that the reserves booked in the Product development and pricing Liquidity Risk is the risk that an institution will be unable to investment policy both have set limits for
financial statements of the company for policyholder - Review valuation models meet its (expected and unexpected) financial obligations various asset classes to ensure enough
liabilities would not be sufficient to pay off policyholder - Appropriate assumptions as they fall due, without incurring losses in disposing off its liquidity at all times.
obligations. - Liability adequacy testing liquid assets. Liquidity risk for ALIFE can arise due to the - Effective fund management to ensure
following factors: timely availability of funds.
Credit Risk - The following mitigating controls are - Mismatch risk. This refers to the emergence of - Alternate source of liquidity
Credit risk is the risk that a Company will experience loss defined: illiquidity when policyholder liabilities are due.
because another party is unable to fulfill its financial Reinsurer - Liquidity risk arising from market forces and stress
obligations towards the Company, credit risk can also arise - Minimum credit rating scenarios such as changes in interest rate, economic
due to: - Highly capitalized and adequately conditions, magnitude of the bid/ask spread etc.
- fluctuations in the credit standing of issuers of experience reinsurer - Asset Composition: This refers to the risk specific to
securities, counterparties and any debtors - More reinsurers on panel to diversify the liquidity of the various investments made by ALIFE.
- delays in the completion of financial obligations by the the risk
obligor
Compliance and Legal Risk To avoid the consequences of legal,
Group Life
- Any omission or failure to meet regulatory compliance regulatory and compliance risks which
ALIFE faces credit risk from various counterparties such - Model premium is discouraged
may expose the Company to penalties, fines and mainly results in reputational damage and
as its: especially where credit history is not
reputational risks. financial losses, the following practices are
- Reinsurers satisfactory or premium amount is small
- Legal risk can arise due to various reasons including adhered to:
- Group life clients - Policy issuance is subject to receipt of
issues in contracts with third parties and policyholders - Separate and independent legal,
- Investment portfolio premium (within specified time)
leading to litigation and disputes. compliance function
- Aging of premium receivable balances
- Dedicated risk management team
Investment Portfolio
- Tracking of regulatory compliance
- Diversification of investment
through checklists
- Pre-assigned credit limits
- Designated teams to implement
- Frequent monitoring
new regulations
- Review and monitoring of website
Financial & Capital Adequacy Risk - Compliance with minimum capital and - The legal department analyze and
- Financial and capital adequacy risk refers to the risk solvency requirements as specified by provide the resolution of the case in
that the financial health and the capital adequacy of the SECP collaboration with other relevant
company might be adversely affected due to various - Frequent review of solvency position by stakeholders
factors leading to insolvency. There are a number of internal management, auditors and
financial risk that can adversely affect the capital and appointed actuary Operational Risk - Implementation of up-to-date SOPs
lead to insolvency including: Operational risk can be described as the risk of loss due to - Integrated IT system.
- Asset default risk inadequate or failed internal processes, people, systems - Claims handling policy & procedures,
- Investments and interest rate risk or from external events. policy claim checklist and MIS.
- Insurance risk - Trainings of customer support staff.
- Operational risks - Clearly defined authority matrices.
- Other risks - Implementation of sound internal control
environment with thorough
understanding of risks (including fraud
Investment, Market and Interest Rate Risk - All investments are in compliance with risks) and proper designation of powers
Market risk is the risk that the value of the financial investment policy and accountability.
instrument may fluctuate as a result of changes inmarket - Monitoring of equity and fixed based
interest rates or the market price of the securities. funds against their respective Strategic Risk - The Company is managing this risk
- benchmarks as set out in the policy A Strategic risk is the risk to earnings and capital due to through quality customer service,
reporting structure is in place to review Incorrect and improper business decisions. It also refers to offering product range for various
decisions taken by Investment manager the unintentional risks that arise as a result of strategy categories of customers and focusing
- Monitoring and performance evaluation development or execution. on brand equity.
of funds at Management Investment This risk encompasses the range from increased - The company also keeps on exploring
Committee level. competition and innovation by competitors to losing market new avenues for business opportunities
share due to new entrants. and growth.
- Open to adopt innovations introduced in
Ife insurance industry.

52 53
 Annual Report 2023 Annual Report 2023

Stakeholders Relationship and Engagement Stakeholders

Why they are
Medium use for
engagement Frequency
important to ALIFE
How ALIFE identifies its stakeholders process

Customers/ We believe that loyalty and - Personal visits of - Annually

ALIFE categorizes different types of stakeholders as;
Policyholders satisfaction of our customers sales - Quarterly
is the foundation of our representatives - As and when
Stakeholders success. Individual
insurance products are by
life - Emails
- SMS
needed

their very nature long-term, - Calls

so we place a strong - Letters
emphasis on the customer - Social Media
experience from the point of - Website
pre-acquisition through
Primary Secondary Influential claim. Our vision is to
become the most trusted
partner for customers.

Employees We foster a culture of - Town hall meetings - Annually

Often someone Parties with an Party that has the employee engagement as - Mentoring and - Binnually
with a direct Employees interest in a Suppliers influence on the Shareholders
(external) (external)
our staff is our most coaching - As and when
interest in the (internal) company, but they actions of the
business. They are Customers / do not necessarily Financial investors business Board of directors important internal - sessions needed
the individuals that policyholders benefit from it (external) Local (internal) stakeholder. We are - Trainings
will benefit directly (external) directly communities Chief Executive committed to maintaining a - Celebrations,
from the actions of Shareholders (external)Media Officer (CEO)
(external) (internal)
skilled and engaged get-togethers,
the business (external)
Competitors workforce driving a culture of picnics
(external) alignment, accountability and - Newsletters (VOAL)
Regulators (SECP, action. Our employees have - Appraisals
FBR, SRB, PRA)
(external)
a key role and have a
significant influence in
operational decisions.We
believe in constant employee
development and succession
Key Stakeholders planning.

Financial We always strived to make - Frequent meetings - Daily for operational

Adamjee Life Institutions long term strategic at senior and matters
Assurance partnerships with banks middle - As and when
Company (corporate agents) to management level needed
Limited increase opportunities for - Direct coordination
bancassurance business. We with sales teams
also employee and utilize - Various trainings
various services/ products - sessions
offered by the banks to bring
in efficiency in the
transactions (collection,
payments, investments etc.).

Regulator As a matter of our principles, - Regulatory returns - Annually

Shareholders we want to stay compliant - Written - Quarterly
Community Regulatory
and Agents with all laws and regulations. correspondences - As and when
Authorities
Investors We believe in having an including emails needed
active dialogue with
regulatory authorities to
Financial Customers/ resolve matters that affects
Environment Employees
Institutions Policyholders insurance operations
including tax matters.

54 55
 Annual Report 2023 Annual Report 2023

Why they are

Medium use for Investors Relation
Stakeholders engagement Frequency
important to ALIFE
process Adamjee Life is dedicated to giving its clients and stockholders the greatest experience possible while generating
long-term value for them. We make sure that reporting is reliable and open. The company works hard to give
Agents We engage actively and - Direct coordination - Daily for opreational investors and shareholders reliable financial information including annual and quarterly reports, news
regularly with our agents and sales and matters announcements, which is then disseminated through a number of channels, and the company website. The
consultants. Sales agents back-office teams - As and when website's information is always kept current. The website has a section specifically dedicated to investors that covers
are the front-line forces who - Various tranning needed all potential areas of interest.
interact with the customers session
and introduce and define
them the product, the Investors Grievance
underlying policy terms and
conditions and the allied According to Adamjee Life, a company's relationships with investors are essential to its financial health and rapid
benefits hence they do help expansion. The organization's reputation is also reflected in its interactions with investors. Thus, it is essential to
us build more valued establish a system inside the company for serving investors and resolving their complaints in a way that complies
relationships with our with the law.
policyholders. To give our
customers the best service In accordance with this, the Company has made available on its website all pertinent information regarding the
possible, agents and Company, its directors, auditors, share registrars, financial data for the current and previous six-year periods, and
consultants work in synergy. daily stock updates of the Company's shares quoted at the Pakistan Stock Exchange.

Shareholders and Our retail and institutional - Annual general - Annually The principal point of contact for investors seeking to address their complaints and find solutions on behalf of the
investors shareholders are the owners meeting - Quarterly Company is the Company Secretary. The management makes an effort to look into and satisfactorily address any
of the Company. Our prime - E x t r a o r d i n a r y - As and when investor concerns and inquiries on priority basis.
objective is to safeguard their general meeting needed
assets and maximize the - Financial results Using an interactive connection on our website, an investor who is unsatisfied may also contact the Securities &
returns on their investment. - Website (Investors' Exchange Commission of Pakistan (SECP) complaint cell.
We believe that their relation section
engagement in decision
making process increases
their trust over the
management of the Company.

Following contact details are available

Community We are committed to making - Community support - Periodically
a difference in the Programs/events of Company’s website:
communities where we work, (CSR activities)
live and serve our customers.
ALIFE was involved in
various CSR programs
during the year. Name: Arsalan Ahmed Khan
Environment We recognize our duty of - Awareness drives - Periodically Designation: Company Secretary
care with respect to the Contact: +92 21 38677100
environment and
consequently will maintain as Email ID:
far as is reasonably [email protected]
practicable, to undertake its
activities in such a way as to [email protected]
minimize any impact to the
environment, whilst
conducting its business.
ALIFE was involved in
plantation drive, promoting
paper less environment,
water conservation
awareness etc.

56 57
 Annual Report 2023 Annual Report 2023

Through employee engagement we motivated a lot of

people to donate, as we aim to do our part to uphold our
Sustainability and Corporate dedication to community through this service.

Social Responsibility (CSR) Our collaboration with The Indus Hospital underscores
our firm commitment to enhancing Pakistan's healthcare
infrastructure sustainably. By initiating this noble cause,
we strive to demonstrate our unwavering support for the
Sustainability Ramzan Donation Drive nation and its citizens in times of need.

At Adamjee Life, we are dedicated to crafting a secure Adamjee Life supporting noble causes &
future for everyone, spearheading impactful social empowering donors everywhere
endeavors aimed at uplifting our nation. We firmly
believe that a thriving society is integral to corporate This Ramzan, as part of our company’s Nigehbaan
advancement. Rooted in the principle of inclusivity, our Ramzan Drive, Adamjee Life collaborated with
commitment to creating shared value extends beyond esteemed humanitarian and social welfare organizations
mere obligation; it's woven into the fabric of our corporate such as The Indus Hospital & Health Network, SIUT, and
mission. With unwavering zeal and purpose, we strive to
make a positive imprint on Pakistan, with a focus on
JDC Foundation. This Drive aims to raise awareness Celebrating Pinktober
and empower individuals to contribute to society through
enhancing education, healthcare, and community the mentioned charitable organizations, impacting
welfare. Happy, Healthy and built to Survive
millions across different segments. To bolster this noble
cause, Adamjee Life also conducted a social outreach
Corporate Social program via its social media platforms, mobilizing the
public, especially the youth.
Adamjee Life proudly hosted a Pinktober Awareness
session on October 20, 2023, in collaboration with
Responsibility (CSR) Mr. Manzar Mushtaq, CEO of Adamjee Life, emphasized
esteemed partners like MEDIQ SMART Healthcare and
the Ministry of Health, Government of Sindh. This event
As an integral part of one of Pakistan's largest the company's commitment to corporate social aimed to create a dynamic platform for community
conglomerates, Adamjee Life stands as a beacon of responsibility, providing a platform for easy contribution. engagement and vital information dissemination.
purpose-driven ethos. Our commitment extends beyond Partnering with established entities like Indus Hospital &
mere business objectives; we are dedicated to Health Network, JDC Foundation, and SIUT further Renowned medical professionals and inspiring cancer
advancing sustainable social goals for the betterment of
our nation. enhances their impact. survivors shared invaluable insights on breast health,
prevention, and the importance of regular screenings.
At Adamjee Life, we embrace the challenge of Dr. Syed A. Hasan Rizvi, from of SIUT, expressed Committed to promoting health awareness and fostering
surpassing expectations while contributing to the greater gratitude towards Adamjee Life, applauding their open dialogue, we strive to break stigmas surrounding
good. Our steadfast advocacy for Pakistan's Sustainable dedication in uplifting lives. breast cancer within our community
Development Goals (SDGs) exemplifies our dedication
to societal progress. Through initiatives like our CSR
arm, Nigehbaan, we actively engage in uplifting Zafar Abbas from JDC Foundation praised Adamjee
low-income communities through impactful investments. Life's focus on community welfare, foreseeing fruitful
collaborations ahead.
Nigehbaan is more than just a CSR platform; it embodies
our enduring responsibility to act ethically and
compassionately. By nurturing the emotional and Dr. Saba Jamal from The Indus Hospital & Health
humanitarian well-being of our organization, we Networks acknowledged Adamjee Life's ongoing
ultimately enhance the quality of life for our employees, support, recognizing its significance in reaching a wider
their families, and the wider community. population.

Adamjee Life Nigehbaan

Blood Donation Drive in

Collaboration with Indus Hospital
‘23
Adamjee Life aimed at saving more lives with each
We launched our Nigehbaan initiative as our CSR wing, drive
which aims at creating awareness, advocacy and taking
a small step towards betterment of our society. This wing Adamjee Life Assurance, in partnership with The Indus
at the moment is focused on working for Education, Hospital, recently organized a blood donation drive at its
Healthcare and Gender Inclusion within the society. Head Office as part of the Nigehbaan CSR initiative.
Committed to serving both customers and society,
Adamjee Life recognized the pressing need for blood
during the ongoing health crisis around the country.

58 59
 Annual Report 2023

Sponsored two young individuals achievement of the SDGs. This year we further made a
substantial impact in this regard by sponsoring M.
for the Markhoor sumitt in Usman Murad's participation in the Taekwondo Asian
collaboration with Youth Impact Championship 2023.
and JDC foundation
M. Usman Murad is promising young athlete, who
represented our nation on an international stage,
motivating other young individuals to pursue their
dreams relentlessly.

This sponsorship aligns perfectly with the Sustainable

Development Goals, particularly with Goal 3 (Good
Health and Well-being) and Goal 10 (Reduced
Inequalities), as it encourages physical activity,
inclusivity, and equal opportunities.

Dr. Jameel Jalibi Research Library

Honoring Dr. Jameel Jalibi Research Library
through sponsorship of its Literacy Awards

‘Dr Jameel Jalibi Research Library’ was established by

his son, Dr Khawar Jameel, by bringing together his
father’s personal collection of valuable and rare books. It
stands on a plot adjacent to KU’s Mahmood-ul-Hassan
Library, which is a fine piece of architecture designed by
his young nephew, Nabeel Akbar (architect).

Each year the organizers of the library hold literary

awards as a tribute to the efforts made by Dr. Jameel
Jalibi for the Urdu language. This year Adamjee Life had
the esteemed pleasure to support and sponsor these
awards and help praise the efforts of the literary scholars
of the Urdu language.
Sparking the spirit of leadership in the youth

Adamjee Life has proudly partnered with Youth Impact Adamjee Life visits JDC
and sponsored two aspiring youth for the Markhor foundation centre
Leadership Program.

We believe in empowering our youth with skills that will

help shape their character in the most positive way and
aspire them to work further on themselves to be
upstanding citizens and contributors towards society.
JDC Foundation Pakistan

Adamjee Life sponsors M. Usman

Murad in Taekwondo Asian
Championship 2023
Rewarding hard work with support as a part of
national pride

Adamjee Life is actively involved in initiatives which

promote youth development and contribute to the

60
02
CORPORATE
GOVERNANCE
 Annual Report 2023 Annual Report 2023

Directors Profiles

S.M. Jawed M. Ali Zeb

Chairman Director

Mr. S. M. Jawed possesses extensive expertise in the International Export Association, UK, highlighting the Muhammad Ali Zeb is a fellow member of the Institute of where he was promoted as Executive Director Finance.
efficient management of cutting-edge industrial company's excellence in production and export. In Chartered Accountants of Pakistan and completed post He was appointed as the Chief Executive Officer in 2008
operations. His remarkable technical proficiency has addition to his leadership in the industrial sector, he graduate diploma in Organizational Leadership from and remained in this position until March 2011. Before
earned numerous accolades and merits for outstanding holds Directorship in following entities, reflecting his Saïd Business School, University of Oxford. He has over rejoining Adamjee Insurance as the Chief Executive
performance in exporting industrial products from diverse business interests. 24 years of diverse experience in the Manufacturing, Officer in June 2013. Ali also served as the Chief
Pakistan. Under his guidance, the industrial entity he Financial and Insurance sectors. He started his Financial Officer at City School (Private) Limited. He has
leads has received prestigious awards, contributing • Din Textile Mills Limited; professional career from Nishat Mills in 1995 and joined served as the Chairman, Insurance Association of
significantly to the country's foreign exchange reserves. • Din Leather (Private) Limited; Adamjee Insurance as the Chief Financial Officer in 2005 Pakistan in 2014.
A recipient of technical education in Industrial • Din Farm Products (Private) Limited;
Technology from the UK, Mr. S. M. Jawed has been • Adamjee Insurance Co. Limited;
honored with a Gold Medallion Award from the • MCB Bank Limited;

Naz Mansha Imran Maqbool

Director Director

Mr. Imran Maqbool has served as President & Chief Lanka, Group Head Special Assets Management, and
Mrs. Naz Mansha has over 34 years’ experience as a of Nishat Mills Limited and Director/Chief Executive of Executive Officer of MCB Bank Limited. He is a seasoned Islamic Banking. Prior to joining MCB Bank in 2002, Mr.
Director on the Board of different companies. She has Emporium Properties (Private) Limited and Director on professional with over three decades of diverse banking Maqbool was associated with the local banking operations
been associated with D. G. Khan Cement Company the Board of Golf View Land (Private) Limited. experience. Before taking on the CEO position, he was of Bank of America and Citi Bank for more than seventeen
Limited (DGKC) since 1994, She is also a Chief Head of Commercial Branch Banking Group, where he years. He worked at various senior management level
Executive of Nishat Linen (Private) Limited, a subsidiary successfully managed the largest group of the Bank in positions in respective banks. Mr. Maqbool holds an MBA
terms of market diversity, size of the workforce, number of from the Institute of Business Administration (IBA),
branches on a countrywide basis, and diversified Karachi, and an MS in Management from MIT Sloan
spectrum of products. In earlier roles, he worked as Head School of Management, Massachusetts USA.
Wholesale Banking Group–North, Country Head MCB Sri
64 61
65
 Annual Report 2023 Annual Report 2023

Umer Mansha Ahmad Alman

Director Director

Mr. Umer Mansha completed his bachelor’s degree in on the Board of MCB Bank Limited, Nishat Dairy Mr. Ahmad Alman Aslam has four decades of In Pakistan, he has served on the boards of the State
business administration from Babson College, Boston, (Private) Limited, Nishat Hotels and Properties Limited, professional experience in investment banking, Bank of Pakistan, OGDC, Adamjee Insurance, IGI Asset
USA. He has been Chief Executive of Nishat Mills Ltd. Nishat (Aziz Avenue) Hotels and Properties Limited, corporate finance, and advisory services. He started his Management, Punjab Coal Mining Company, The Bank
since September 08, 2007. He is also the Chairman of Nishat (Raiwind) Hotels and Properties Limited, Nishat career with Citibank in 1975 and served there in various of Punjab, Punjab Small Industries Corporation and the
the BoD of Adamjee Insurance Company Limited. He (Gulberg) Hotels and Properties Limited, Nishat capacities over a period of 28 years. He also served as Private Power and Infrastructure Board. Mr. Aslam has a
has been serving on the Board of Directors of various Developers (Private) Limited and Nishat Agriculture the Managing Director, based in New York, responsible Masters’ degree in Business Administration from Punjab
listed companies for more than 23 years. He also serves Farming (Private) Limited. for all debt issued by borrowers in the emerging markets. University and has attended the program for
Mr. Aslam has also served as an advisor to EMP Management Development at Harvard University,
Washington, a US$ 6 billion private equity fund. Cambridge.

Shahmeer Khalid
Director

Mr. Shahmeer Khalid Butt is a corporate finance and major SGD 2 billion internal recapitalization which
investment professional and has worked in different resulted in significant tax and interest savings. He holds
organizations in Pakistan and United Arab Emirates. a BSc (Hons) degree in Investment and Financial Risk
Currently, he also serves as an Executive Director in Management from Cass Business School at University
Next Pharmaceuticals, being responsible for strategy, of London. He also holds membership of Lahore’s
financial planning, marketing, and other operational chapter of Entrepreneurs Organization (EO) which is a
areas. Prior to this, he served as Corporate Finance global peer-to-peer network of more than 14,000
Analyst for Al Futtaim (Private) Company during which influential business owners in 61 countries.
he led the planning, design, execution and closing of a

66 67
 Annual Report 2023 Annual Report 2023

��
Chairman’s Review ‫������ہ‬
Dear Shareholders, ،‫�ز�داران‬

�� � �
I am writing to present the Annual Report of Adamjee Life Assurance Company Limited (the Company) for the fiscal
� �
year ending December 31, 2023, on behalf of the Board of Directors. This report aims to provide you with an ����‫����وا����ل��آد���آ�ر���)"�"(����ر�رٹآپ‬2023�‫د‬31��� � � ‫�ىاس‬
� �‫�����رڈآفڈا���ز‬
overview of the Company's overall performance and the effective contributions made by the Board. � �� � � � �
‫�����ت����ہ�� ���۔‬ � �‫���۔اسر�رٹ��������ر�د�اور�رڈ‬
� �‫���ا�مدى‬ � ��
Adamjee Life has implemented a robust governance framework, aligning with the Companies Act, 2017, the Listed
Companies (the Code of Corporate Governance) Regulations, 2019, and the Code of Corporate Governance for
� � �� � � � �� � ��
‫اور �ڈ آف‬، 2019 ، �� ������‫�ر�ر� �ر�( ر‬ ‫ ��� �� � )�ڈ آف‬،2017 ،�‫آد� �� �ر� � �ا� �ط ��� ورك � � �ا � � � ا‬
Insurers, 2016. The Board of Directors, recognizing the importance of well-defined corporate governance
‫�ر�ر� �ر� �ر‬
�� �
processes, is dedicated to upholding Adamjee Life’s core values and vision while ensuring elevated standards of
corporate governance to safeguard and enhance stakeholders' value. ‫�ر�ر� �ر�� وا� �ر �� �ہ ���ں� ا�� ادراك �� ��آد� ��� �ىا�اراور‬ � � ‫ � � �ر � � آ��۔ �رڈ آف ڈا���ز‬2016 ،‫ا�ررز‬
A systematic evaluation mechanism has been established by the Board to regularly assess the Company’s ‫�ر�ر��ر����رات���������رز�و���د�اورا��������م��۔‬ � � ‫وژن�����ارى����م�اور‬
objectives, strategies, and business and financial performance. This involves active engagement with management ‫ �����ں��ىآ��اور��ڈ����ر�د ����۔‬
� � � ���� ����activities and the execution of the � �
�� instilled
and internal auditors to provide appropriate direction. The day-to-day business
‫������۔‬The
Board’s strategies are the responsibility of the management. 20�Board
‫���ٹ‬has ��،(�‫رو‬ �184:2022
a transparent )�‫رو‬
and �215���‫������ا���ں‬2023�‫ د‬
robust
compliance system, adhering to the best practices of corporate governance, promoting ethical conduct, and ‫ �رو���رى���ںاور ����ر�د���������������� ����� ��او��������ہ�مو�� �ا�۔اس‬،‫اس���ں‬،�����‫�رڈ‬
fostering fair behavior across the organization. This commitment is ingrained in Adamjee Life’s culture and values ����‫���ا ���تد��۔روز�ہ��رو��رى���ںاور�رڈ���ں‬
� ‫���اورا��آڈ�ز���م�����زوں������اور‬
‫ �����ں��ىآ��اور��ڈ����ر�د ����۔‬
��‫ا‬،����‫آڈ�ز‬
� � � � �
through the widespread dissemination of the Code of Conduct.
� � ‫�ر� � �����و���ں‬ ��� ��� �‫�ر�ر‬ �،���‫اور��������� �ا��فاور�ط�مو‬ � ‫�۔�رڈ�����ارى‬ � ‫� ����ذ�دارى‬
�
� ��� � ‫���۔‬ � �
� � �� ��� 20�‫�ٹ‬ � ��� ��،(�‫�رو‬184:2022)�‫�رو‬ � 215���‫�����ا���ں‬ �2023�‫ �د‬
‫�ر�ڈا�ؤ ������آڈ‬،‫��دل‬
Board members have diligently contributed to providing strategic direction, oversight, and governance, ensuring the
��‫آڈٹ‬ The‫�۔‬ ��‫�ا‬ ‫ابوہدو���رہ�رى‬ ‫�اور‬ �of �� ‫�ل‬ �����‫���ر‬undergo � �‫اور�اس‬‫�آڈ‬ �‫وا‬ ��� �� �� �‫آد‬
�‫����و� ر‬ �‫ا‬ ‫اور‬ � � �� �‫و‬ � �� ‫آف‬ ‫�ڈ‬ � � ‫ا�ق‬ �� ‫�۔‬ � ��� � � ِ ������
‫ز‬ � � �‫� ِز����وغد��اورادارے‬
long-term sustainability and success of the company. Board's performance
an annual evaluation in accordance with the Code of Corporate Governance, ��ensuring
and
� � � ���
that its committees
alignment� with �
‫�م‬ � ‫�ر‬ � � ‫آڈ‬ � ‫�ں‬ ،� � ‫�رش‬ � ‫ى‬‫�ر‬ � � ‫ا�ؤ‬ ‫�ر�ڈ‬ ،� � ‫ا‬ ‫ى‬‫�د‬ �� � KPMG � � 2024 ‫�ل‬ � ‫ز‬� � �‫ڈا‬ ‫�رڈآف‬،�‫�رش‬ ‫���اس��م��د��د��۔‬ � � �‫ا�ار‬
comprehensive criteria and confirming satisfactory overall performance.
‫����۔‬� � ‫����ا�ر��ى‬
‫آڈ�ز‬
� � � ��� �
Throughout the challenging operational and financial performance of the year, the Board played an effective role in
� � ‫آڈٹ‬ ‫۔‬ � � �‫ا‬ � ‫ى‬ ‫�ر‬ ‫�رہ‬� � ‫دو‬ ‫وہ‬ ‫اب‬ ‫اور‬ � � � � ‫�ل‬ �� � � � ‫�ر‬ � � ‫آڈ‬ � � � � �� ‫�ر�ڈا�ؤ‬،‫وا�آڈ����دل‬ ��� ��� � �‫ر‬
managing the affairs of the Company. The Board commits to maintaining its crucial role in shaping the Company’s ‫� � ����ارى اور ��� � �� � � ا� �دار ا�� �ى اور‬ � � � ���� ‫���ں اور دوررس �دوں‬ � �‫ �ا� اور �ر‬،�‫� � رو�س �ا‬ � �� � �� � ‫�رڈ � ار�ن‬
�
direction, fostering achievements and efficiency, and guiding management in alignment with Board-approved ‫�ں�آڈ���ر��م‬،��‫�ر�ڈا�ؤ �����رى��رش‬ ،��‫����دىا‬KPMG��2024‫�ل‬ � � �‫آفز‬ ��‫ڈا‬
� ‫�رڈآف‬،�‫�رش‬
strategies while upholding the principles of sound corporate governance. �‫�����ر‬ ��‫ا� � ِرا‬ �‫��ل��������ر����ذر‬ � � �‫�ر�ر��ر��رو���رڈاوراس��ں��ر�د‬ ‫�����ا�مد���۔�ڈ‬
� � � � � ‫����۔‬ � � ‫����ا�ر��ى‬
On behalf of Adamjee Life, I express gratitude�� for ��
� the
�contributions
‫�ا�نان�ا�ر‬of‫�ز‬ the� management,
�‫ڈا‬ ����‫ا��دارادا‬ ���‫��اور‬regulator,
employees, ��‫ا�روںاور��رس�اس‬،‫���اور�زا��ز‬ � ���� ‫����ارى������اور������ر�د����ں��را�����۔‬
vendors, contractors, and valued shareholders.� � Their confidence, continued support, and commitment� are � �
���� �‫��� �� �� اس��رآج‬ � ‫اور�� �آپ� ��اس‬،���‫��� �وس��ا‬،�‫�۔ا�ٰ ���ا�� �رات� �����ارر‬
acknowledged and appreciated.
�
�
‫���۔‬
� �‫���آ�وا�اداروں‬
� ���‫�ہ�ر�د�اور���ں‬،���‫���دارادا�۔�رڈ���و‬
�‫ا�ر��ں‬ � ���‫���رآ��اور������ں��رڈ���ا��ا�ر‬ �� ‫ا� ِر‬ ��‫�ل‬
� � � � �
���� � ��
‫�دوں�ادا‬�� ‫�دارا�ر‬ �‫ان‬
‫�ى‬‫ا�ن‬
�‫�ا‬
�‫ر��ز‬
��‫ڈا‬ � ��� �� ���‫رو‬
‫�دارادا‬ �‫�ں‬�‫��ا‬ �‫�ر�ہ‬ �‫�رڈ����اور‬
�‫اس‬ �� ���
‫��ارى�رس‬
�‫ا�روں��اور‬�‫ا��ں‬،‫��ز‬ � � ���
‫�ر�ر��زا‬
�‫�ر‬ ‫اور‬ � ‫اور���ہ‬
���� ��� �‫آ‬
�� � � �
� � � � ���� �‫��� �� ��اس��رآج‬ � ‫اور�� �آپ� ��اس‬،���‫��� �وس��ا‬،�‫�۔�ا���رات� �����ارر‬ � � ٰ�‫��م‬‫���۔ا‬
‫��������و���ر��ا��ت��ط����د�۔‬ � ‫���د��و�اور�ا ���ت�آد��ل����ادا‬
� �
‫���۔‬ � �‫ا�ر��ں����آ�وا�اداروں‬
� � � � �� � � � ��
� ‫ور‬‫ا‬ � �� ‫�م‬ � ‫اور‬
� ‫آ� � � اس �رے �ل � دوران �ون اور �و� ��ا� �� � �ر� ا� ا� � آف ����ن � �� ادا‬
‫�� �� � اور ��رے‬ � �� � ،‫ا�د‬ � ‫ان‬ ‫�ں۔‬ ‫��ار‬ � ‫��ت‬ � ‫�ا�ر‬ � ‫��رز‬ � ‫�ز‬ ‫اور‬ ‫��ز‬ ،‫و�رز‬ ،��‫ر‬ ،�‫�ز‬ ،� � � �
�� � �� �‫آد‬
February 26, 2023 � � � �
‫��������و���ر��ا��ت��ط����د�۔‬ � ‫��د��و�اور�ا ���ت�آد��ل����ادا‬ ‫��۔‬� �� �
S.M. Jawed ‫ادارے�ا�د��وا�ا�������ار�۔‬
� � � �
Chairman
�
‫�� �� � اور ���رے‬
� ‫آ� � � اس �رے �ل � دوران �ون اور �و� ��ا� �� � �ر� ا� ا� � آف ����ن � �� ادا‬
�
‫��ق‬ � �‫ا�ا‬
��‫�و‬ ‫ادارے�ا�د��وا�ا�������ار�۔‬
�‫�ا��آ‬ ��
�
2023‫��ورى‬26
‫��ق‬ � �‫ا�ا‬
��‫�و‬
�‫�ا��آ‬ ��
�
2023‫��ورى‬26

68 69
 Annual Report 2023 Annual Report 2023

Directors Report to the Shareholders The notable expansion in underwriting surplus can be attributed to several factors:

Firstly, there was a boost in income derived from interest-based securities, which were strategically invested against
on Company’s Affairs and Future outlook solvency and other reserves in the statutory fund. Additionally, the increase in the policy holder fund size and well
controlled acquisition / distribution cost has played a pivotal role in enhancing the Company's underwriting surplus.
The Directors of Adamjee Life Assurance Company Limited take pleasure in presenting their Moreover, the Company has benefited from a more favorable mortality experience compared to the previous year.
Annual Report together with the Audited Financial Statements of the Company for the year This positive outcome has further contributed to the overall improvement in underwriting surplus. The combination
ended December 31, 2023. of these factors reflects the effectiveness of the Company's financial strategies and risk management practices.

The Company’s net income (before surplus transfer) from shareholders’ fund has risen significantly to Rs. 501
Financial Highlights million as against Rs. 208 million in the last year due to better rate of return on investment.

The highlights for the year under review are as follows: The operational expenditure was increased by 29% as compared to last year, which is still in line with inflation rate
persisted in year 2023. Nevertheless, the operating expenses were below the budgeted allocations by 15%
31 December 31 December demonstrating managements vigilance before embarking upon new expenses kept in the budget.
2023 2022
The resultant profit before tax of the Company has thus increased to Rs. 1.54 billion as compared to Rs. 810 million
Audited Audited in the last year, generating an earnings per share of Rs. 3.63 for the year as against the 1.99 per share last year.
---------- Rupees in ‘000 ----------
The returns and cash value has significantly improved in the statutory / policyholder’s funds which are majorly
Gross premium 23,350,828 20,948,801 invested in comparatively low risk, debt and money market instruments due to historically high interest rates. The
Net premium 22,685,659 20,315,452 performance of equity market was also historical and had produced excellent returns. The combined average return
Investment income 18,062,049 3,734,153 on all funds was approx. 27.65% p.a. as against 14% p.a. in 2022.
Net benefits paid to and reserved for policyholders 34,893,773 19,171,741
Acquisition & other operating expenses 4,312,733 4,067,554 The Company’s Claims Settlement Ratio within 90 days of intimation was 83% and the Company’s Complaint
Profit before tax 1,541,202 810,310 Closure Ratio within 30 days was 97%.
Profit after tax 908,075 497,702
Size of statutory fund 78,264,502 61,810,326 The Company’s size of Statutory Fund was Rs. 78.2 billion as of December 31, 2022, registering an increase of
Shareholders’ equity 4,417,568 3,748,290 26.6% over the period of one year.
---------- Rupees in ‘000 ----------
There was no major development in the matter of petitions filed by the Company and other life insurance industry
Earnings per share 3.63 1.99 players in the Hon’ble High Courts of Sindh and Lahore, against the levy of Sindh Sales Tax on Services (SST) and
Punjab Sales Tax on Services (PST) by the Sindh Revenue Board and Punjab Revenue Authority (PRA)
respectively. The Company has not provided any liability against this levy as it believes that such sales tax on
Performance Review services cannot be levied on Life Insurance policy which is a contingent contract rather than a service.
In the fiscal year 2023, Pakistan's Gross Domestic Product growth rate experienced a notable decline, registering at
0.29%, in stark contrast to the 6.10% recorded in the corresponding period of the previous year. The economic
downturn was exacerbated by severe macroeconomic imbalances, domestic supply shocks, and a global economic Window Takaful Operations
slowdown. Furthermore, the Investment to GDP ratio decreased from 15.7% in FY22 to 13.6% in FY23. Notably, the The gross contribution generated from Window Takaful Operations was Rs. 3.988 Billion (Dec 31, 2022: Rs. 4.166
per capita income exhibited a decline from USD 1,765 in FY22 to USD 1,568 in FY23, reflecting the challenging Billion). The profit before tax that has been reported for December 31, 2023 amounts to Rs. 251 million, which is an
economic conditions during the period. increase of 37.53% from the corresponding period i.e. Rs. 184.082 million. The new business mix of takaful was 30%
as against 38% in the last year.
Despite the fact that insurance penetration is also correlated with economic growth and disposable income, both of
which have been negatively impacted by political turmoil and inflationary pressure, our business partners and
effective direct sales force have continued to maintain their reach to the prospects, underpinning the need to hedge Surplus Transfer
uncertainties of life.
During the year, a surplus amount of Rs. 500 million has been transferred from the statutory funds to the
shareholder’s fund. Such an amount was transferred based on the advice of the appointed actuary of the Company.
The Company has demonstrated exceptional resilience amidst challenging economic conditions, a testament to the
strategic buildup of its portfolio over the years and growth in its topline. This, coupled with lower acquisition costs and
favorable investment returns on statutory reserves, has contributed in producing excellent profitability
Future Outlook
The Company though experienced a 6.9% decline in new business from individual regular premium policies, there Pakistan’s economy is undergoing a process of structural reforms in alignment with the International financing
were notable positive trends in other segments. Renewal premium and corporate group life business exhibited programs. A stable and well-functioning democracy is a prerequisite to initiating structural reforms and institutional
robust growth, increasing by 5.52% and 23.28%, respectively. Furthermore, business from single premium policies overhauling. The government that emerges after the upcoming elections, will face numerous challenges. Fiscal
saw a substantial uptick, recording a growth of 26.54%. Consequently, the total gross premium of the Company imbalances, high debt payments, significantly high inflation and exchange parity pressure may pose significant
witnessed an impressive 11.47% increase compared to the previous year. hurdles to the new government’s economic revival agenda. Low purchasing power of consumers, and lower
government spending has contributed to the decline in sales of overall insurance sector. The revised GDP growth
The Company's underwriting surplus, representing profit before operating expenditure and income from forecast for the fiscal year 2024 is 2%, coupled with an inflation projection of 23-25%.
Shareholders’ fund, has demonstrated significant growth, reaching Rs 2,114 million compared to Rs. 1,440 million
in the previous year. This marks a substantial increase of 46.84%.

70 71
 Annual Report 2023 Annual Report 2023

The company's leadership is well aware of the prevailing economic conditions in the country and is actively • Carried out a blood Donation Drive with Indus Hospital, twice within the year.
implementing essential strategies to navigate the challenges. Moreover, the Company will continue to analyze • Honoring Dr. Jameel Jalibi Research Library through sponsorship of its Literary Awards in Urdu Literature
situation carefully to explore new opportunities, new market and to incentivize policy holder to keep their policies
active.
Board Evaluation Mechanism
The Company is more than sufficiently capitalized, all its statutory funds are adequately solvent with total reserves As required by the Code of Corporate Governance Regulations, the Board of Directors of the Company has a
of 1.92 Billion over its paid up capital. The Company does not see any downside impact on its equity while the framework in place for evaluating both the performance of the Board and that of its committees on an annual basis.
country will grapple to manage economy in 2024. These review processes are conducted yearly by the Board of Directors and the Board Committees in which area
needed greater focus and participation are identified and worked upon.
Earnings per Share
The basic and diluted earnings per share for the year 2023 was Rs. 3.63 as compared to Rs. 1.99 in 2022. Directors' Compensation
The Board of Directors is empowered under the Company's Articles to periodically determine the compensation for
Dividends to Shareholders Non-Executive and Independent Directors. A "Board Remuneration Policy" has been authorized by the Board of
Directors. Except for the meeting fee for attending the Board meetings strictly in accordance with the policy, the
The Board of Directors has recommended a final cash dividend of Rs. 1.00 per share, i.e. 10%. This is in addition to Company does not provide any other compensation to its non-executive directors. The compensation given to the
the interim cash dividend paid by the Company of Rs. 1.00 per share (10%), thereby making a total cash dividend directors including the cost of attending Board or Board committee meetings, has been properly stated in note 40 of
of Rs. 2.00 per share, i.e. 20% for the year 2023, subject to the approval of the shareholders at the Annual General the financial statements.
Meeting of the Company to be held on April 25, 2024.

Compliance with the Listed Companies (Code of Corporate Governance)

Insurer Financial Strength Rating (IFS rating) Regulations, 2019, Code of Corporate Governance for Insurers, 2016,
The Pakistan Credit Rating Agency Limited reviews the Company's IFS rating on an annual basis. On June 26, 2023,
the most recent annual assessment was completed, and the company's IFS rating was confirmed at A++, with a
and with PSX Rule Book
"Stable" Outlook. The grade takes into account the Company's strong capacity to fulfil its contractual and As a listed life insurance company, the Company abides by the rules of the PSX Rule Book, the Listed Companies
policyholder commitments. The Company's operations under both the Conventional and Window Takaful Operations (Code of Corporate Governance) 2019, and the particular Code of Corporate Governance for Insurers, 2016. The
showed growth patterns and a premium base that contrasted favorably to rivals, according to the PACRA rating Statement of Compliance, which relates to these standards, is appended to the Annual Report.
assessment.
Board of Directors
Awards and Accolades A total of four non-executive directors, one female director, and two independent non-executive directors make up
The Company continued to add more feathers to its cap during the year 2023: the Board of Directors for the Company.
• Pakistan Digital Award (Best Website of the Year)
• NFEH CSR Award (National Forum for Environment & Health Award) According to the mandated gender diversity, the Board of Directors is made up of the following:
• Consumer Choice Award
Name Category
Code of Conduct & Business Ethics
Mr. Ahmad Alman Aslam Independent Director
Adamjee Life has established a Code of Conduct, which outlines the duties and responsibilities of all stakeholders,
including board members, employees, and the company itself. This Code is based on the company's Corporate Mr. Shahmeer Khalid Butt Independent Director
Strategy, Vision, Mission, and Core Values, and is a crucial aspect of the company culture. The Code of Conduct can Mr. Umer Mansha Non-Executive Director
be found in the Annual Report on page xx and on the company's website, and has been effectively communicated
throughout the organization. Mrs. Naz Mansha Female Director
Mr. Shaikh Muhammad Jawed Non-Executive Director
Corporate Social Responsibility (CSR) Mr. Imran Maqbool Non-Executive Director
Being a part of one of the largest conglomerates in Pakistan, Adamjee Life has always been a purpose driven Mr. Muhammad Ali Zeb Non-Executive Director
Organization. Our CSR wing – Nigehbaan - strives to improve the lives in low income communities with impactful
initiatives.
The CSR Policy, which was adopted by the Board, offers a guiding framework for realizing our goal.

CSR initiatives taken during the year were:

• Executed Promising Pakistan campaign in collaboration with Indus Hospital and St. Joseph School, promoting
our ongoing support for Health and Education
• A donation drive in Ramzan where we donated but also encouraged everyone to donate to renowned
organizations like SIUT, JDC Foundation and Indus Hospital
• This Pinktober – breast cancer awareness month, we collaborated with Govt. bodies and leading Telehealth
provider (MedIQ), a cancer survivor and our channel partners to help educate and spread awareness over this
horrible yet curable disease.
• Sponsored two young leaders for the Markhoor summit in collaboration with Youth Impact and JDC foundation

72 73
 Annual Report 2023 Annual Report 2023

Directors' Participation / Attendance in various meetings including Board, its Committees and Annual General Holding Company
Meeting (AGM) held during 2023 is presented in below table:
The Company is a subsidiary of the Adamjee Insurance Company Limited.
Board BAC EHRRNC BIC AGM
Meeting Corporate and Financial Reporting Frame Work
No. of Meeting held During 2023 6 4 2 4 1
• The financial statements prepared by the management of the Company present fairly its state of affairs, the
Mr. Shaikh Muhammad Jawed 6 4 2 4 1 result of its operations, cash flow and changes in equity.
Mr. Umer Mansha 6 2 • Proper books of accounts have been maintained by the Company.
• Appropriate accounting policies have been consistently applied in preparation of financial statements and
Director

Mrs. Naz Mansha 5

Mr. Muhammad Ali Zeb 6 4 4 accounting estimates are based on reasonable and prudent judgment.
Mr. Imran Maqbool 6 4 • The International Accounting Standards, as applicable in Pakistan, have been followed in preparation of
Mr. Ahmad Alman Aslam 3 1 financial statements and any departure there from has been adequately disclosed.
Mr. Shahmeer Khalid Butt 6 4 2 1 • System of internal control is sound in design and has been effectively implemented and monitored.
• There are no significant doubts upon the Company's ability to continue as a going concern.
Mr. Samad Ali Naqvi 4 1 • There has been no material departure from the best practices of Corporate Governance, as detailed in the
Management

Mr. Muhammad Amir 4 listing regulations.

Ms. Zehra Faiz 2 • The key operating and financial data for the last six years is annexed.
Mr. Jalal Meghani 6 4 4 1 • The value of assets of gratuity fund as at December 2023 is Rs. 215 million (2022: Rs. 184 Million) refer note
Mr. Amin Nizar Ali 4 20 of the financial statements.
Mr. Manzar Mushtaq 6 4 2 4 1
BAC: Board Audit Committee Auditors
EHRRNC: Ethics, Human resource, Remuneration and Nomination Committee
BIC: Board Investment Committee
The retiring auditor Yousuf Adil, Chartered Accountants have completed five years as auditors of the Company and
are no longer eligible for re-appointment. On recommendation of the Audit Committee, the Board of Directors have
Management Committees under the Code of Corporate Governance recommended the appointment of KPMG Taseer Hadi & Co, Chartered Accountants for the year 2024, who have
indicated their consent to act as auditor.
for Insurers, 2016
In addition to the aforementioned, the following three committees are also chaired by the directors of the company
Acknowledgement
and operate in accordance with the terms of reference laid forth in the Code of Corporate Governance for Insurers,
The Company's talented and distinguished executives, personnel, and field force made a significant contribution to
2016:
its development and progress, and the Directors want to publicly express their gratitude for this. Their persistent
1. Claims Settlement Committee
dedication to upholding the highest ethical standards, providing excellent customer service, and hard work have
2. Underwriting, Reinsurance & Co-insurance Committee
enabled your company to establish and hold its position as one of the top players among private sector life insurers.
3. Risk Management & Compliance Committee
We must also express our thanks to Adamjee General for their ongoing support and direction, which have helped
Other committees include the Investment Management Committee (IMC), the IT Steering Committee, Project
the company build a solid reputation in the marketplace.
Management Group (PMG), all of which are chaired by the Deputy Managing Director & Chief Financial Officer.
Finally, we would like to express our gratitude to the Securities and Exchange Commission of Pakistan for their
Internal Audit Function support and cooperation throughout the year as well as to our clients for their faith in us.

The Internal Audit Department of the company operates under a defined scope and authority, outlined in the
approved Internal Audit Charter. This department follows a risk-based methodology for conducting internal audits,
evaluating the effectiveness and sufficiency of internal controls, consistency in policy and procedure application, and
adherence to laws and regulations. Based on the reports generated by the internal audit function, process owners
take corrective actions to enhance controls. To preserve its impartiality and independence, the Internal Audit
Department reports to the Board Audit Committee (BAC) in a functional capacity and to the CEO in an administrative
capacity. Sheikh Muhammad Jawed Manzar Mushtaq
February 26, 2023 Chairman Board of Directors Chief Executive Officer
Risk and Opportunity
The company has a strong risk management system in place. The Board of Directors closely monitors risks, through
Risk Management & Compliance Committee, and performs comprehensive assessments to ensure smooth
business operations and to take advantage of opportunities that align with the company's long-term strategies and
vision. They are diligent in identifying and mitigating risks.

Material Changes
There have been no material changes since December 31, 2022 to the date of this report.

74 75
 ‫‪Annual Report 2023‬‬ ‫‪Annual Report 2023‬‬

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‫‪76‬‬ ‫‪77‬‬
 ‫‪Annual Report 2023‬‬ ‫‪Annual Report 2023‬‬

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‫�ن�د���۔‬
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‫‪1‬‬ ‫‪4‬‬ ‫‪4‬‬ ‫‪6‬‬ ‫�ب�ل��‬ ‫�ر�ر� �ر� �ر ا�ررز‪ 2016 ،‬اور � ا� �ا� ا�‬
‫��‬
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‫�� ا�ر� � � �ر �‪ PSX � ،‬رول ��‪�) � �� � ���� ،‬ڈ آف �ر�ر � �‬
‫� �ر� �ر‬ ‫ا �� �� ��‬
‫�اے�‪�:‬رڈآڈٹ ��‬
‫� �‬
‫� ������� �‬ ‫� �‬ ‫� ��‬ ‫ا�ررز‪��2016،‬ا������ى���۔ان�رات������ارى��ن���ر�رٹ��اہ���ر�د ����۔‬
‫اىا�آرآرا��‪:‬ا ���‪��،‬ر�رس‪،‬ر���ا� �� ��‬
‫�آ��‪�:‬رڈا���‬
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‫�����نا��ڈا���ز���۔‬ ‫ا���نڈا���اوردوا�‬‫���رڈآفڈا���ز‪��،‬ر��نا��ڈا���ز‪� ،‬‬
‫� �‬ ‫�‬ ‫�‬ ‫�‬
‫�ر�ر��ر��ر ا�ررز‪�����2016 ،‬ا�‬ ‫��رہ������وہ درجذ���ں� �‬
‫���ا�ن���ڈا���ز�����اور�ڈآف‬ ‫��ع��ز��ط�����ارى�����رڈآفڈا���زدرجذ����‪:‬‬
‫���ا�����م���‪:‬‬
‫� � � �‬ ‫� �‬
‫‪�������� ��� ����� .1‬‬ ‫��� ��ى‬
‫�‬‫�‬ ‫�‬
‫��م‬
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‫‪ .2‬ا��ررا�‪،‬رىآ�ر�ا��ا�ر��‬ ‫���ڈا���‬ ‫ا�‬ ‫�با�ا�نا�‬
‫‪ .3‬ر��ا���������‬

‫‪78‬‬ ‫‪79‬‬
 ‫‪Annual Report 2023‬‬ ‫‪Annual Report 2023‬‬

‫��آ��‬
‫�ل‪��2023‬دىاور‪��Diluted‬آ��‪3.63‬رو����‪�2022‬اس���‪1.99‬رو�ر��۔‬ ‫‪97‬‬ ‫‪30‬‬ ‫ت‬ ‫‪83‬‬ ‫ا ‪90‬‬ ‫ر‬

‫�داران���‬ ‫۔‬ ‫ا‬ ‫ت ‪26.6‬‬ ‫‪78.2 2022‬ار برو ر ا‬ ‫‪31‬‬

‫�‬
‫�رڈ آف ڈا���ز � ‪ 1.00‬رو� � �� ‪� � � 10‬ح � � � ��� �رش� �۔ � � ��ف � ادا� �‪ 1.00‬رو� � �‬
‫(‬ ‫)‬ ‫و‬ ‫ى‬ ‫ا ر ا‬ ‫اور‬
‫)‪�� (�10‬رى� ��� �وہ ��� � اب�ل ‪2.00�� ��� 2023‬رو� � �‪ 25�� �� �20 �،‬ا��‪�2024‬‬
‫ى‬ ‫ں‬ ‫فدا در ا‬ ‫ذ‬ ‫و‬ ‫(‬ ‫)‬ ‫‪ SST‬اور‬
‫) (‬
‫���وا������ا�سِ �م��داران��رى��وط�۔‬
‫ا ر‬ ‫ت اس ح‬ ‫اس‬

‫ا�رر����ا�م�ر�)آ�ا�ا�ر�(‬
‫�‬ ‫��‬ ‫�‬
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‫�‬ ‫ں‪:‬‬ ‫و و‬
‫���ا���وںاور������رز���و�وں� �را�������ط‬ ‫ا�ر�‪��A++‬م��اورآؤٹ�‪Stable‬ر�۔اس � �‬
‫�‬ ‫��‬ ‫�‬ ‫‪2023‬‬ ‫‪31‬‬ ‫(‬ ‫‪4.166 :2022‬‬ ‫)‪31‬‬ ‫‪3.988‬‬ ‫مآ‬ ‫وا‬ ‫ں‬ ‫و و‬
‫�����ر���۔روا�اورو��و��دو�ں�������ں�ا�ا��ر���تد��آ�اور‪�PACRA‬ر���‬ ‫�‬
‫‪184.082‬‬ ‫آ‬ ‫د‬ ‫ا‬ ‫‪37.53‬‬ ‫‪251‬‬
‫���������ں� �����ز�رر�۔‬
‫‪38‬‬ ‫‪30‬‬

‫ا�ارڈزاورا�ازات‬
‫�ل‪�2023‬دوران���ا�ازات�ا�����رىر�‪:‬‬
‫و� � �‬
‫��(‬ ‫‪���� ‬نڈ�ا�ارڈ)�ل��� � �‬
‫ى‬ ‫ا‬ ‫ر‬ ‫ف‬ ‫۔ر‬ ‫دارا ن‬ ‫ى ز‬ ‫ر‬ ‫ا‬ ‫رو‬ ‫‪500‬‬
‫�‬
‫‪ ‬ا�ا�اىا�‪�،‬ا�آرا�ارڈ)��رم�را�ا���ا��ا�ارڈ(‬
‫‪���� ‬ا�ا�ارڈ‬
‫‪:‬‬ ‫آ ہ‬
‫ا‬ ‫تاوراوور‬ ‫دىا‬ ‫ادارو ں‬ ‫ن‬
‫��ا�قاور�رو���رىا�ار‬
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‫ں‬ ‫ے ۔‬ ‫ر‬ ‫وا‬ ‫ت‬ ‫۔ آ ہا‬ ‫اور ل رى م ى دارادا‬
‫ا� �� ا�ق و� � � � � �م � ��رز �ل �رڈ ار�ن‪� ،‬ز� اور �� ِ‬
‫�ات �د � � ��ا� اور ذ� دار ���ں � � دى �‬ ‫آد� �� � ا� �‬
‫�‬ ‫� ���‬ ‫‪،‬‬ ‫ت‬ ‫ا‬ ‫ے‬ ‫ا دى‬ ‫دؤ‬ ‫ا اط زراورا‬ ‫ں‬ ‫‪،‬‬
‫�����۔���ا�ق���ر�رٹ���‪xx‬‬ ‫�ر�ر�� ���‪،‬وژن‪�،‬اور�ىا�ار���اور���� �‬
‫ا�� � �‬ ‫� �‬ ‫�۔�����‬ ‫‪2‬‬ ‫ڈى‬ ‫‪2024‬‬ ‫۔‬ ‫ىا‬
‫�‬ ‫��‬
‫��آ���ا��ت���۔‬ ‫���اس����رے� �‬ ‫و�������د�اورادارے� � �‬ ‫�د ����اور�� � �‬ ‫‪25-23‬‬ ‫ا اطزر‬

‫�ر�رو���رىادارہ��ذ�دارى)�ا�آر(‬ ‫آ ں‪،‬‬ ‫۔‬ ‫ں‬ ‫ى‬ ‫ں‬ ‫دت‬

‫�‬ ‫�‬ ‫��‬ ‫�‬ ‫�‬
‫�� ر� �۔ ���را � ا� آر و�‪،‬‬ ‫ا� �وپ � ���و � �ر � آد� �� � �‬
‫ا� ���� ادارے � �ر � �م �‬ ‫����ن � ���ے �رو���رى �و�ں � � �‬ ‫۔‬ ‫د‬ ‫ں‬ ‫شاور‬
‫�‬
‫���و�ں�ذر��آ��وا��ت�ز��ں�������م��۔‬ ‫"�ن"ا� �‬
‫�‬
‫ا�ر����ورك��مد��۔‬ ‫�رڈ��ف��ر���ا�آر ���� ���رے����ل�� �‬ ‫‪ 1.92‬ارب‬ ‫ذ‬ ‫‪ ،‬اور اس ادا ہ‬ ‫ڈ ‪،‬‬ ‫ل‬ ‫اور‬
‫۔‬ ‫ا ات‬ ‫د اس ا‬ ‫ے ‪،‬‬ ‫و‬ ‫ن ا‬ ‫‪2024‬‬
‫رواں�ل�دوران�ا�آر����ں�ر�‪:‬‬
‫� �‬ ‫��‬
‫‪ ‬ا��س�لاور��زف�ل�ا�اك�‪���Promising Pakistan‬م������اور���ں��و��‬

‫‪80‬‬ ‫‪81‬‬
 ‫‪Annual Report 2023‬‬ ‫‪Annual Report 2023‬‬

‫��‬ ‫�‬
‫�‬ ‫�‬ ‫�‬
‫ڈا� ���ز����ہ‬
‫���ہ � �‪��� � ،‬ل � اس � �رٹ �� � �� ����� ا�� اور اس � ِ‬
‫� اول �‬ ‫�� � �‬ ‫� � � �� ��ت � �� � � �� �‬ ‫�‬
‫آد���ا�ر����ڈا���ز���ا�ا���ت��������‪31‬د�‪����2023‬وا��ل�������ر�رٹ‬
‫�‬
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‫ر��رو�����رى��ز�ر�ات�������ل‬ ‫��ت�ا�ا������ت�۔اس�����ا�������اور ا��ى �‬
‫�آڈٹ�ہ�����ت)‪��(Audited Financial Statements‬ر��۔‬
‫�ا��دارادا��۔‬
‫���ا�ر�� ���ں�‪:‬‬
‫�‬ ‫�� �ا‪ � ،‬د� �ں � �� �‬ ‫�‬
‫�� ذ� � � � ر�۔‬ ‫� � ا�� ا�ادى ر�� �� ����ں � � �رو���ر � �ل � ‪� �� � � � 6.9‬‬ ‫��‬
‫ز� ِ��ل�� ���ں�درجذ��‪:‬‬
‫��‬ ‫�ى �� اور �ر�ر � �‬
‫� �وپ �� � �رو���ر � ����� ‪ � 5.52‬اور ‪ � 23.28‬ا�� �ا �۔ �وہ از�‪���� �� � ،‬ں � �رو���رى‬ ‫���‬
‫�‬ ‫�‬ ‫�‬ ‫�‬ ‫�‬ ‫‪2022‬‬
‫‪31‬د�‪2022‬‬
‫‪31‬‬ ‫‪31‬د�‪2023‬‬
‫���ں ����اہا��د��‪��26.54�،‬ر�رڈ��۔����� ���� ً‪����������� ،‬ل����‪�����11.47‬ار‬
‫ا��د��آ ��۔‬ ‫آڈٹ�ہ‬ ‫آڈٹ�ہ‬
‫�‬
‫‪�� ----------‬ار�اررو‬
‫رو��‪----------‬‬
‫‪----------‬‬
‫�‬ ‫� �‬ ‫�‬ ‫��‬
‫����� �‪�� �،‬ں ا�ا����‪�2,114‬رو� �‬
‫�� ا��ررا� ��‪� ،‬آ�� ا��ا�ت �� �� اور � ��رز���آ��� �‬ ‫‪20,948,801‬‬
‫‪20,948,801‬‬ ‫‪23,350,828‬‬
‫‪23,350,828‬‬ ‫�اس��‬
‫� �‬ ‫‪20,315,452‬‬ ‫‪22,685,659‬‬
‫���۔‬
‫�� �‬
‫������ل�‪�����46.84���1,440‬اہا��� �‬ ‫‪20,315,452‬‬ ‫‪22,685,659‬‬ ‫���‬
‫‪3,734,153‬‬
‫‪3,734,153‬‬ ‫‪18,062,049‬‬
‫‪18,062,049‬‬ ‫����رى�آ��‬
‫��‬ ‫‪19,171,741‬‬ ‫‪34,893,773‬‬
‫ا��ررا����اس� ���ںا�����ا���ب����‪:‬‬ ‫‪19,171,741‬‬ ‫‪34,893,773‬‬ ‫������رز�ادا�ہاوران���ص��ا�ت‬
‫�‬ ‫��‬ ‫�‬
‫‪4,067,554‬‬
‫‪4,067,554‬‬ ‫‪4,312,733‬‬
‫‪4,312,733‬‬ ‫� ����ارى ��ا����اورد�آ��ا��ا�ت‬
‫� �‬
‫او�ً‪�،‬د������ ���ر������وا�آ���ا���ا‪� �،‬د�ا���������وا�����رىاور��ى��د� �‬
‫ر��روز���‬ ‫‪810,310‬‬
‫‪810,310‬‬ ‫‪1,541,202‬‬
‫‪1,541,202‬‬ ‫�از���‬
‫�‬ ‫��‬ ‫�‬ ‫��‬ ‫��‬
‫�� � ا�� اور ا���� ‪/‬ڈ�ى �� � �� � ���اہ �ول � � � ا��ر را� �� � ����� � ا�‬
‫�۔ �وہ از�‪�� ���� ،‬ر � � �‬ ‫‪497,702‬‬
‫‪497,702‬‬ ‫‪908,075 908,075‬‬ ‫�از���‬
‫�دارادا��۔‬ ‫‪61,810,326‬‬
‫‪61,810,326‬‬ ‫‪78,264,502‬‬
‫‪78,264,502‬‬ ‫ا��ى�‬
‫‪3,748,290‬‬
‫‪3,748,290‬‬ ‫‪4,417,568‬‬
‫‪4,417,568‬‬ ‫�داران�ا��‬
‫�‬ ‫� � �‬ ‫� ��‬
‫�وہاز�‪���،‬ل���حا�ات������ز ���دہ�ز�رر�۔اس����و�ا��ررا���� ������� ����� � �‬
‫������‬ ‫‪----------‬‬
‫‪----------‬‬ ‫‪----------‬‬
‫‪----------‬رو��‬
‫� �‬ ‫‪1.99 3.63‬‬ ‫‪3.63‬‬
‫ا�د�������۔‬ ‫�د�۔ان�م�ا���������ںاورر�����ں�‬ ‫‪1.99‬‬ ‫��آ��‬

‫�‬ ‫�‬
‫����رى������ح��و����رز������آ��)������(�� ��ںا�����‪�501‬رو���‬
‫ر د ��‬
‫���ہ‪:‬ہ‪:‬‬
‫������ل‪�208‬رو��۔‬ ‫�ر�د��‬

‫�‬ ‫�‬ ‫اس ل‬ ‫اور اس‬ ‫ل ا ت ‪6.10‬‬ ‫آ‬ ‫ں د‬ ‫اوار ح‬ ‫ن‬ ‫‪2023‬‬
‫�� �ل ‪���� � 2023‬ن � �� � �اوار � �ح � � ���ں � د� � آ� � �� �ل � ا� �ت � ‪ � � 6.10‬اور اس � ���� اس �ل‬
‫آ�� ا��ا�ت� ���ل��‪ �29‬ا�� �ا‪ �،‬اب� �ل‪����� 2023‬ح� �� �۔اس����و�د‪،‬آ�� ا��ا�ت�‬ ‫� ڑ ا ۔‬ ‫� وا‬ ‫‪0.29‬‬
‫�‬ ‫‪،‬‬
‫���ڑ�ا�۔�وہاز�‪���،‬‬
‫زوا ل‬ ‫ا ںاور ا دى د زارى‬ ‫ر‬ ‫م از ن‪،‬‬
‫��وا���م�ازن‪���،‬ر���ا�ںاور��ا�دى�د���زارى���زوال�� � �‬ ‫‪�0.29‬ر�۔ � �‬
‫��‬
‫�����۔‬‫����ر��‪��15‬ر����ر���ا��ا�ت��م�وع����ا����ط��� � �‬ ‫آ‬ ‫‪ 13.6 2023‬ر ۔ � ذ ت‬ ‫ل‪15.7 2022‬‬ ‫رى‬ ‫اوار ظ‬
‫��ذ����ت�����آ�����‬ ‫�����ل‪������15.7�2022‬ل‪�13.6�2023‬ر�۔‬ ‫�اوار��ظ�����رى� �‬
‫‪1,568 2023‬ا ڈا ر اس ت دورا ن‬ ‫‪1,765 2022‬‬
‫�� �‬
‫ت‬
‫�‬ ‫د� �آ���� ‪ 1,765 � 2022‬ا��ڈا�� اور���ل ‪ 1,568 � 2023‬ا�� ڈا�ر� � اس �ت� دوران �����ت � � �‬
‫�� ��‬
‫����� ���� ً���از�������ل�‪�810‬رو���‪1.54‬اربرو��ا���ا�����آ��‪3.63‬رو�ر��‬
‫�۔‬
‫���ل‪1.99‬رو���ر��۔‬
‫� ا ندو ں ا � ا ت �‬ ‫اورا � اطزر د ؤ‬ ‫ى‬ ‫�ا �‬
‫� � �‬ ‫�‬ ‫�‬ ‫����‬ ‫�ا����اورا��آ������ى���اور���اورا��اطزر�د���ؤ�����اندو�ں��ا��ات �‬ ‫��ا�����‬
‫� ����� �� ً� ِر� � �‬
‫ا��ى‪�� ����/‬رز �ز � �� اور � و� � � ��ں �ى آ� � � � ��� �رى ��ر� �ر � � �ح �د � ���� ز ���دہ �‬ ‫�‬ ‫ں و‬ ‫�‬ ‫رے رو رى ر زاور رس � اہرا‬ ‫‪،‬‬
‫�‬ ‫�‬ ‫�‬ ‫�� ���اہرا����ں��و���ا������������رىر��‪� � ��،‬‬
‫��‬ ‫�‪��� �،‬رے�رو���رى���ر�زاور��رس� �‬
‫�‬
‫��ضاور��ر��ا�و������۔ا���ر���ر�د����ر�ر�اوراس�����ار��د ��۔�م�ز���او���� ً‬ ‫�‬ ‫�‬
‫���۔‬
‫��������رز����را��را���� �‬ ‫�‬
‫‪����27.65‬ر��‪����14�2022‬ر��۔‬

‫‪82‬‬ ‫‪83‬‬
 Annual Report 2023 Annual Report 2023

Compliance with the Code of Corporate 9. The meetings of the Board were presided over by the Chairman and the Board met at least once in every

Governance quarter. Written notices of the Board meetings, along with agenda and working papers, were circulated at least
seven (7) days before the meeting. The minutes of the meeting were appropriately recorded and circulated.

10. The Board has established a system of sound internal control, which is effectively implemented at all levels
Statement of Compliance with the Code of Corporate Governance for within the Company. The Company has adopted and complied with all the necessary aspects of internal
controls given in the Code.
Insurers, 2016 & the Listed Companies (Code of Corporate Governance)
Regulations, 2019, for the year ended 31 December 2023 11. The Board have a formal policy and transparent procedures for remuneration of directors in accordance with
the Act and these Regulations.

This statement is being presented in compliance with the Code of Corporate Governance for Insurers, 2016 (the 12. During the year, new Company Secretary Mr. Arsalan Ahmed Khan was appointed by the board.
Code) and Listed Companies (Code of Corporate Governance) Regulations, 2019 (the Regulations) for the purpose
of establishing a framework of good governance, whereby Adamjee Life Assurance Company Limited (the 13. There was no change of Chief Financial Officer, Head of Internal Audit. The Board has approved the
Company) is managed in compliance with the best practices of Corporate Governance. remuneration of CFO & Company Secretary and the Head of Internal Audit Department.

The Company, being an insurer, has applied the principles contained in the Code and the Regulations in the 14. The Directors' Report for this year has been prepared in compliance with the requirements of the Code and the
following manner: Regulations and fully describes the salient matters required to be disclosed.
1. The total number of directors are Eight as per the following, -
a. Male: Seven 15. The financial statements of the Company were duly endorsed by Chief Executive Officer and Chief Financial
b. Female: One Officer before approval of the Board.

2. The Company encourages representation of independent non-executive directors and directors representing 16. The Directors, Chief Executive Officer and other executives do not hold any interest in the shares of the
minority interests on its Board of Directors. At present the Board includes: Company other than disclosed in the pattern of shareholding.

17. The Company has complied with all the corporate and financial reporting requirements of the Code and the
Category Name Regulations.
Independent Director Mr. Ahmad Alman Aslam
18. The Board has formed the following Management Committees under the Code:
Independent Director Mr. Shahmeer Khalid Butt
Non-Executive Director Mr. Umer Mansha
Non-Executive Director Mrs. Naz Mansha Underwriting, Reinsurance & Co-insurance Committee
Non-Executive Director Mr. Shaikh Muhammad Jawed Name of Members Category
Non-Executive Director Mr. Imran Maqbool Mr. Umer Mansha Chairman / Non-Executive Director
Non-Executive Director Mr. Muhammad Ali Zeb Mr. Manzar Mushtaq Member / Chief Executive Officer
Chief Executive Officer Mr. Manzar Mushtaq Mr. Amin Nizar Ali Member / Head of Actuarial & Risk

The independent directors meet the criteria of independence under the Code. Dr. Bakht Jamal Member / Head of Operations
Mr. Farrukh Kidwai Secretary / Head of Underwriting
3. The directors have confirmed that none of them is serving as a director on more than seven listed companies
including this company.
Claim Settlement Committee
4. All the resident directors of the company have confirmed that they are registered as taxpayers and none of them
has defaulted in payment of any loan to a banking company, a DFI or an NBFI or, being a member of stock Name of Members Category
exchange, has been declared as a defaulter by a stock exchange.
Mr. S.M. Jawed Chairman / Non-Executive Director
5. No casual vacancy occurred during the year. Mr. Manzar Mushtaq Member / Chief Executive Officer
Mr. Jalal Meghani Member / Chief Financial Officer
6. The Company has prepared a Code of Conduct, which has been disseminated among all the directors and
employees of the Company. Mr. Ali Haider Member / Head of Distribution
Mr. Kashif Fareed Ahmed Khan Secretary / Head of Claims
7. The Board has developed a vision / mission statement, overall corporate strategy and significant policies of the
Company. A complete record of particulars of significant policies along with the dates on which they were
approved or amended has been maintained.

8. All powers of the Board have been duly exercised and decisions on material transactions, including
appointment and determination of remuneration and terms and conditions of employment of the Chief
Executive Officer and the key officers, have been taken by the Board in accordance with the Companies Act
and the Regulations.

84 85
 Annual Report 2023 Annual Report 2023

Risk Management & Compliance Committee 21. The terms of reference of the aforesaid committees have been formed, documented and advised to the
committee for compliance.
Name of Members Category
22. The meetings of the Committees, except Ethics, Human Resource and Remuneration Committee, were held at
Mr. Muhammad Ali Zeb Chairman / Non-Executive Director
least once every quarter prior to approval of interim and final results of the Company and as required by the
Mr. Manzar Mushtaq Member / Chief Executive Officer Code. Ethics, Human Resource and Remuneration Committee meeting was held twice during the year.
Mr. Jalal Meghani Member / Chief Financial Officer
23. The Board has set up an effective internal audit department which comprises of suitably qualified and
Mr. Amin Nizar Ali Member / Head of Actuarial & Risk experienced staff for the purpose and are conversant with the policies and procedures of the Company and are
Mr. Asif Mirza Secretary / Head of Compliance involved in the internal audit function on a regular basis.

24. The Chief Executive Officer, Chief Financial Officer, Compliance Officer and the Head of Internal Audit possess
such qualification and experience as is required under the Code. The Appointed Actuary of the Company also
19. The Board has formed the following Board Committees. meets the conditions as laid down in the said Code. Moreover, the persons heading the underwriting, claim,
reinsurance, risk management and grievance functions / departments possess qualification and experience of
direct relevance to their respective functions, as required under section 12 of the Insurance Ordinance, 2000
Ethics, Human Resource, Remuneration and Nominations Committee
(Ordinance No. XXXIX of 2000):
Name of Members Category

Mr. Shahmeer Khalid Butt Chairman / Independent Director

Name of Members Category
Mr. S.M Jawed Member / Non-Executive Director
Mr. Manzar Mushtaq Chief Executive Officer
Mr. Muhammad Ali Zeb Member / Non-Executive Director
Mr. Umer Mansha Member / Non-Executive Director Mr. Jalal Meghani Chief Financial Officer / Deputy Managing Director

Mr. Manzar Mushtaq Member / Chief Executive Officer Mr. Arsalan Ahmed Khan Company Secretary

Ms. Zehra Faiz Secretary / Head of Human Resource Mr. Samad Ali Naqvi Head of Internal Audit
Mr. Asif Mirza Head of Compliance
Mr. Amin Nizar Ali Head of Actuarial & Risk Management
Investment Committee
Mr. Bakht Jamal Head of Operations & Legal
Name of Members Category
Mr. Farrukh Kidwai Head of Underwriting
Mr. S.M. Jawed Chairman / Non-Executive Director
Mr. Kashif Fareed Ahmed Khan Head of Claims
Mr. Muhammad Ali Zeb Member / Non-Executive Director
Mr. Muhammad Danish Head of Customer Services
Mr. Imran Maqbool Member / Non-Executive Director
Mr. Manzar Mushtaq Member / Chief Executive Officer
25. The statutory auditors of the Company have been appointed from the panel of auditors approved by the
Mr. Jalal Meghani Member / Chief Financial Officer Commission in terms of section 48 of the Insurance Ordinance, 2000 (Ordinance No. XXXIX of 2000). The
Mr. Amin Nizar Ali Member / Head of Actuarial & Risk statutory auditors of the Company have confirmed that they have been given a satisfactory rating under the
quality control review program of the Institute of Chartered Accountants of Pakistan, that they or any of the
Mr. Muhammad Amir Secretary / Sr. Manager Finance partners of the firm, their spouses and minor children do not hold shares of the insurer and that the firm and all
its partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics
as adopted by Institute of Chartered Accountants of Pakistan.
20. The Board has formed an Audit Committee. It comprises of three members, of whom one is an independent
director and two are non-executive directors. The chairman of the Committee is an independent director. The 26. The statutory auditors or the persons associated with them have not been appointed to provide other services
composition of the Audit Committee is as follows: except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC
guidelines in this regard.
Audit Committee 27. The Appointed Actuary of the Company has confirmed that he or his spouse and minor children do not hold
Name of Members Category shares of the Company.

Mr. Shahmeer Khalid Butt Chairman / Independent Director 28. The Board ensures that the Appointed Actuary complies with the requirements set out for him in the Code.
Mr. S.M. Jawed Member / Non-Executive Director
29. The Board ensures that the investment policy of the Company has been drawn up in accordance with the
Mr. Muhammad Ali Zeb Member / Non-Executive Director provisions of the Code.
Mr. Samad Ali Naqvi Secretary / Head of Internal Audit
30. The Board ensures that the risk management system of the Company is in place as per the requirement of the
Code.

86 87
 Annual Report 2023 Annual Report 2023

31. The Company has set up a risk management function / department, which carries out its tasks as covered
under the Code. INDEPENDENT AUDITOR’S REVIEW REPORT
32. The Board ensures that as part of the risk management system, the Company gets rated from PACRA credit To the members of Adamjee Life Assurance Company Limited
rating agency which is being used by its risk management function / department and the respective Committee
as a risk monitoring tool. The rating assigned by the said rating agency on 26 June 2023 is A++ with stable
outlook. Review Report on the Statement of Compliance contained in Code of Corporate Governance for Insurers,
2016 and Listed Companies (Code of Corporate Governance) Regulations, 2019
33. The Board has set up a grievance department/function, which fully complies with the requirements of the Code.
There were instances where the resolution period for policyholders’ complaints exceeded 30 days. These cases We have reviewed the enclosed Statement of Compliance (the Statement) with the Code of Corporate Governance
were generally reported to the SECP on a timely basis, but a few were reported with a slight delay due to for Insurers, 2016 and the Listed Companies (Code of Corporate Governance) Regulations, 2019 (both herein
practical reasons. referred to as ‘the Code’) prepared by the Board of Directors of Adamjee Life Assurance Company Limited (the
Company) for the year ended December 31, 2023 in accordance with the requirements of Regulation 36 of the Listed
34. All directors are either already certified or exempt from the said requirement under Code. Companies (Code of Corporate Governance) Regulations, 2019 and Provision (lxxvi) of Code of Corporate
Governance for Insurers, 2016.
35. The Company has not obtained any exemption from the Securities and Exchange Commission of Pakistan in
respect of the requirements of the Code. The responsibility for compliance with the Code is that of the Board of Directors of the Company. Our responsibility
is to review, whether the Statement reflects the status of the Company’s compliance with the Code and report if it
36. We confirm that all other material principles contained in the Code of Corporate Governance for Insurers, 2016 does not and to highlight any non-compliance with the requirements of the Code. A review is limited primarily to
have been complied with. inquiries of the Company’s personnel and review of various documents prepared by the Company to comply with the
Code.
37. We confirm that all requirements of regulations 3, 6, 7, 8, 27, 32, 33 and 36 of the Regulations have been
complied with. As part of our audit of the financial statements we are required to obtain an understanding of the accounting and
internal control systems sufficient to plan the audit and develop an effective audit approach. We are not required to
38. Regulation 6: The Board of the Company comprises of seven (7) elected directors and CEO therefore one-third consider whether the Board of Directors’ statement on internal control covers all risks and controls, or to form an
works out to be 2.66. Fraction arrived at while calculating the one-third of Independent Directors was not opinion on the effectiveness of such internal controls, the Company’s corporate governance procedures and risks.
rounded up to one. The reason for such rounding down is because the Board honesty believes and understands
that two (2) independent directors are sufficient to fulfill the roles and obligations of the independent director as The Code requires the Company to place before the Audit Committee, and upon recommendation of the Audit
per requirements of the applicable law and regulations. Moreover, the Company has two eminent and seasoned Committee, place before the Board of Directors for their review and approval, its related party transactions. We are
professionals who are acting in the capacity of independent directors, both of whom have the requisite only required and have ensured compliance of this requirement to the extent of the approval of the related party
competencies, skills, knowledge and experience to discharge and execute their duties competently. Therefore, transactions by the Board of Directors upon recommendation of the Audit Committee.
the appointment of a third independent director is not considered.
Based on our review, nothing has come to our attention which causes us to believe that the Statement does not
39. Mr. Jalal Meghani (Chief Financial Officer & Deputy Managing Director), was serving as a member on both the appropriately reflect the Company’s compliance, in all material respects, with the requirements contained in the
Claim Settlement Committee and the Underwriting, Reinsurance & Co-insurance Committee. However, as per Code, as applicable to the Company for the year ended December 31, 2023.
the Code of Corporate Governance for Insurers, 2016, the same individual, excluding the Chief Executive
Officer, cannot concurrently serve on both committees. Consequently, Mr. Jalal Meghani’s name was removed
from the list of members of Underwriting, Reinsurance & Co-insurance Committee through a circular resolution
dated January 05, 2024.

40. The minutes for all board and management committees' meetings were duly recorded and circulated within the Chartered Accountants
stipulated time frame, with the exception of the 48th and 49th Board Investment Committee minutes, which
were circulated with a delay of three days. Additionally, the minutes of the Claim Settlement Committee for the Place: Karachi
second quarter were not circulated within the fortnight and were subsequently approved in the following Date: April 01, 2024
committee meeting. UDIN: CR202310057e6WEkwTYd

88 89
 Annual Report 2023 Annual Report 2023

Governance Framework Directors Training Program

All of the directors including Chief executive officer & Chief Financial Officer have already completed Director
Ownership Structure Training Program Certification from SECP approved institution or have availed the exemption.

Categories of Shareholders Shareholders Shares Held Percentage Policy on related party transactions
Directors and their spouse(s) and minor children 7 1,750 0.0007 The Related Party Transactions Policy has been adopted by the Board of Directors. It is company policy to
carryout all related party transactions on an arm's length basis throughout regular business operations. On the
Parent Company 1 224,998,250 90.00
proposal of the Audit Committee, the Board must give particular approvals or ratifications if a transaction is not
Associated Companies, undertakings and related parties 1 3,613,975 1.44 carried out at arm's length in order to avoid any potential conflicts of interest.
Executives - - -
According to the policy, every transaction with a related party must have board's approval and be
NIT and ICP - - - recommended by the audit committee, which is chaired by an independent director.Any director (including
Banks, Finance Institutions, NBFC - - - spouses and children) who is in any way, whether directly or indirectly, interested in any agreement entered
into by or on behalf of the company or contemplated by it must disclose the nature of his interest at a board
Insurance Companies - - - meeting. In his or her capacity as a director, no director shall participate in, or cast a vote on, any contract or
Modarabas and Mutual Funds 5 2,309,329 0.92 agreement entered into or to be entered into by or on behalf of the Company if the director is in any way,
whether directly or indirectly, concerned with, interested in, or otherwise connected with the contract or
General Public - Local 683 2,815,576 1.32 agreement. Additionally, the director's presence shall not be taken into account when determining whether a
General Public – Foreign 46 64,000 0.03 quorum is present for any such discussion.
Others 18 16,197,120 6.4
Total 761 250,000,000 100.00 Policy for Actual and Perceived Conflict of Interest
*The Company is a subsidiary of Adamjee Insurance Company Limited. The Company is dedicated to openly disclosing, managing, and overseeing any current or potential conflicts of
interest. The Board of the Company is also aware of its responsibilities under the Listed Companies (Code of
Corporate Governance) Regulation, 2019 and the Code of Corporate Governance for Insurers, 2016, to make
sure that Directors avoid conflicts of interest between their official duties and their other interests.

Ownership Structure All Board members have a responsibility to stay clear of any conflicts of interest, real or perceived. Every
director of the company who has a stake in any transaction the company is considering entering must inform
the board of the nature of his interest or concern and must abstain from participating or voting on the
Directors and their spouse(s) discussion, The Directors of the Company must submit a signed Statement of Compliance each year in
and minor children accordance with section 153 of the Companies Act, 2017, COCG, and Insurance Companies (Sound and
Parent Company Prudent Management) Regulations, 2012.

Associated Companies, The declaration mandates that each Director declare the names of the companies, partnerships, and
undertakings and related parties enterprises with which they are affiliated and attests to their compliance with all applicable laws.
Modarabas and Mutual Funds

General Public - Local Grievance Policy

According to Adamjee Life's policy, a company's relationships with investors are essential to its financial health
General Public – Foreign and rapid expansion. The organization's reputation is also reflected in its interactions with investors. Thus, it is
essential to establish a system inside the company for serving investors and resolving their complaints in a way
Others that complies with the law.

In accordance with this, the Company has made available on its website all pertinent information regarding the
Company, its directors, auditors, share registrars, financial data for the current and previous six-year periods,
and daily stock updates of the Company's shares quoted at the Karachi Stock Exchange.

Formal Orientation Courses for the Directors The principal point of contact for investors seeking to address their complaints and find solutions on behalf of
the Company is the Company Secretary. The management makes an effort to look into and satisfactorily
All the Directors of the Company are well experienced and have diverse backgrounds. At the time of induction of a address any investor concerns and inquiries. Using an interactive connection on our website, an investor who
new director, a comprehensive orientation session is being conducted covering various aspects such as Company’s is unsatisfied may also contact the Securities & Exchange Commission of Pakistan (SECP) complaint cell.
operations, applicable laws & regulations and their fiduciary duties and responsibilities towards the Company, etc.

90 91
 Annual Report 2023 Annual Report 2023

- Conduct activities in a manner that protects the environment and educate staff regarding environmental
IT Governance Policy impacts associated with institutional operations;
According to Adamjee Life, information technology is a crucial component of overall corporate and IT gover- - Maintain a risk based emergency management program to reduce the impact of emergency events at
nance. The business has positioned itself to make effective use of information technology resources to meet its ALIFE.
operational and strategic goals while boosting shareholder value. IT governance lays a strong focus on offer-
ing effective and safe IT solutions that satisfy the needs of our policyholders in the most convenient and
creative ways. The company upholds extremely high standards for cyber security.
Business Continuity Plan
Business continuity planning (BCP) is a process designed to reduce the organizations' business risk arising
The main objective of IT governance policy is to ensure that IT systems and processes align with the goals and from an unexpected disruption of the critic all function/operations necessary for the survivall of the organization.
objectives of the organization, and support the overall strategy of the organization. This can include short or long-term disasters or other disruptions, such as fires, floods, earthquakes,
explosions, terrorism, extended power interruptions, hardware or software failure, hazardous chemical
Specifically, an IT governance policy aims to achieve the following objectives: spills, and other natural or man-made disasters.

1. Align IT strategy with business strategy The Business Continuity Plan is limited in scope to recovery and business continuance from a serious
2. Manage IT risks disruption in activities due to the non-availability of Adamjee Life's facities. The Business Continuity Plan
3. Optimize Tinvestments includes procedures for all phases of recovery.
4. Ensure compliance with regulations and standards
5. Improve IT performance and efficiency The objectives of the BCP plan is to:
6. Ensure accountability and responsibility
7. Foster a culture of continuous improvement 1. Ensure the safety of employees and visitors in the office buildings.
2. Mitigate threats or limit the damage that threats can cause.
3. Have advanced preparations to ensure that critical business functions can continue.
Whistle Blowing Policy 4. Have documented plans and procedures to ensure the quick, effective execution of recovery
Adamjee Life's whistle-blowing policy is a set of guidelines and procedures that an organization puts in place strategies for critical business functions.
to encourage and protect employees who report misconduct or illegal activity within the organization. The 5. Include procedures for all phases of recovery as defined in the Business Continuity Strategy section of
policy outlines the steps an employee can take to make a report, the channels for reporting, and the protections this document.
and remedies available to whistleblowers. 6. Establish teams who will manage the process of recovery and restoration of business after a disaster
and those who wil complete the specific activities necessary to continue critical business function.
The primary goal of a whistle-blowing policy is to promote ethical behavior and create a culture of transparency
within the organization. By encouraging employees to speak up about wrongdoing, organizations can identify Cyber Security Policy
and address problems before they become major issues. Additionally, by protecting whistleblowers from
retaliation, organizations can send a message that unethical behavior will not be tolerated and that the In view of increased cybersecurity threats targeted at the financial sector and to comply with SECP'S Cyber
organization is committed to upholding high ethical standards. Security guidelines, it is imperative that at Adamjee Life every IT resource, user, and owner adopt appropriate
cybersecurity protections.

Human Resource Management Policies including Preparation Cyber Security policy involves protecting critical information and devices from cyber threats; policy allso
of Succession Plan describes how ALIFE critical data should be protected against vulnerable attacks that can threaten critical
data/ information, whether on the workstation, across various applications, networks, or devices.
A complete set of policies has been put in place by Adamjee Life to address every facet of human resources.
With a continual emphasis on learning and development interventions, the company has a motivated and It is essential to adopt a risk-based approach for cyber security implementation, Additionally, according to the
engaged staff that will help it achieve its strategic goals and objectives. In order to provide our staff more minimum-security standards, adequate levels of protection for different risk categories can be defined for
power, the company has introduced state of the art Human Resource Management System. different risk categories.

Recognizing that changes in management are inevitable, Adamjee Life has established a succession plan to
provide continuity in leadership and avoid extended and costly vacancies in Key position. Adamjee Anti Money Laundering and Countering Financial Terrorism Pollicy
Lifesuccession plan is designed to identify and prepare candidates for High Level management positions Adamjee Life ensures its commitment to the directives of Securities and Exchange Commission of Pakistan
thatbecome vacant due to retirement, resignation or new business opportunity (SECP) and Government of Pakistan (GoP) to prevent money laundering and financing of terrorism in all its
forms, Adamjee Life and its staff shall cooperate with the SECP and other regulatory authorities in all matters
related to AML/CFT and the Company shall fully comply with instructions or inquiries from the SECP and other
Health, Safety and Environment competent authorities in this regard.
Adamjee Life is committed to provide a safe environment for all of its employees. The Company makes all
reasonable efforts to: Adamjee Life shall not allow its products, services or any of its resources to be utilized for the purposes of
money laundering and terrorist financing and it shall take all steps necessary for prevention of money
- Promote occupational and personal safety; laundering and terrorist financing through its platform.
- Promote the health and safety of employees and contractors;
- Provide information to employees about health and safety hazards; The policy established and adopted by Adamjee Life to counter and combat Money Laundering activities
- Identify health and safety hazards and encourage employees to report potential hazards; conducted using Adamjee Life as a medium, The objective of this policy is to assist the users of this policy
(Board of Directors of Adamjee Life, management, agents and all employees in general) understand what is
money laundering/terrorist financing, how it applies to Adamjee Life, the regulatory environment and the
procedures in place to counter money laundering/terrorist financing along with the impact of those procedures
on the work processes. This policy is reviewed annually on account of amendments in regulatory framework.

92 93
 Annual Report 2023

Statement of Unreserved Compliance of International Financial

Reporting Standard (IFRS) issued by the International Accounting
Standard Board (IASB
The management of the Company strongly believes in adherence to unreserved compliance with all
theapplicable International Accounting Standards (IAS)/International Financial Reporting Standard (IFRS)
issued by International Accounting Standards Board (IASB). The Financial Statements have been
prepared in accordance with the accounting and reporting standards as applicable in Pakistan and in
accordance with provisions of and directives issued under the Companies Act, 2017 and Insurance
Ordinance, 2000, Insurance Rules 2017, Insurance Accounting Regulations, 2017 and the Takaful Rules,
2012.

Statement of Adherence with the International Integrated Reporting

Framework (IIR)
The International Integrated Reporting Council's (IIRC's) rules for the International Integrated Reporting (IR)
framework were followed in the preparation of Adamjee Life's Annual Report for 2023. We constantly work to
improve the transparency of the information presented to our stakeholders in order to build and maintain their
trust, including that of employees, policyholders, suppliers, business partners, local communities,
legislators, regulators, and policymakers. We always aim to achieve our goals through excellent corporate
reporting.

In order to improve the quality of information and clearly express the financial and non-financial
information that reflects the systemic and dynamic interactions of insurance business activities as a whole for
its stakeholders, as well as represents the Company's performance and ability to create value over time, a
principle-based integrated reporting framework is promoted. It further improves stewardship and
accountability for the full range of capitals (financial, material, intellectual, human, social, and relationship, as
well as natural), and it encourages awareness of their interdependencies.

The management firmly believes in adherence to the best corporate governance and reporting practices and
ensures complying best reporting practices and generate greater value for the Company and the
stakeholders as well.

Statement of Directors
As per the requirement of Section 46(6) and Section 52(2)(c) of the Insurance Ordinance 2000 for the year
ended December 2023.

Section 46(6)
We certify and confirm that:

a) In our opinion the annual statutory accounts of Adamjee Life Assurance Company Limited set out in the
forms attached to the statement have been drawn up in accordance with the Insurance Ordinance, 2000
and the rules made there under;
b) Adamjee Life Assurance Company Limited has at all times in the year complied with the provisions of the
Insurance Ordinance, 2000 and the rules made there under relating to paid-up capital, solvency
reinsurance arrangements as at December 31, 2023; and
c) As at December 31, 2023, Adamjee Life Assurance Company Limited continues to be in compliance with
the provisions of the Ordinance and the rules made there under relating to paid-up capital, solvency and
reinsurance arrangements.

Section 52(2)(c)

In our opinion each statutory fund of Adamjee Life Assurance Company Limited complies with the solven-
cy requirements of the Insurance Ordinance, 2000 and the Insurance Rules, 2017 (previously Insurance
Rules, 2002).

Shahmeer Khalid Butt

94
03
Financial
Performance
& Reporting
 Annual Report 2023 Annual Report 2023

Financial Performance Analysis Six Year Financial Performance (2018-2023)

Statement of Value Addition Balance Sheet 2023 2022 2021 2020 2019 2018
------------------------------------- Rs in Million -------------------------------------
WEALTH GENERATION Paid up capital 2,500 2,500 2,500 935 935 935
2023 2022
Reserves 1,048 772 585 527 364 49
Rs. In '000 % Rs. In '000 %
Unappropriated profit 870 476 164 28 20 139
Net premium / contribution 22,685,659 55.66% 20,315,452 84.48% Investments(market value) 78,608 60,771 49,678 38,547 31,078 28,783
Net investment income 17,186,733 42.17% 3,010,006 12.52% Investment property 1,065 944 939 855 876 855
Other income 883,519 2.17% 723,055 3.01% Fixed assets 319 367 370 402 564 241
Total wealth generated 40,755,911 100.00% 24,048,513 100.00% Cash & bank deposits 3,927 5,317 9,726 9,955 7,261 3,312
Other assets 2,171 1,768 1,204 1,080 655 721
Total assets 86,090 69,166 61,918 50,839 40,434 33,912
Total liabilities 81,672 65,418 58,668 49,349 39,114 32,789
WEALTH DISTRIBUTION 2023 2022
Rs. In '000 % Rs. In '000 %
Operating Data
Net insurance benefits 18,997,003 46.61% 14,234,436 59.19%
Change in insurance liabilities 15,896,770 39.00% 4,937,305 20.53% Gross premium 23,351 20,949 20,658 17,101 12,969 13,247
Commission expense 2,514,706 6.17% 2,550,784 10.61% Net premium 22,686 20,315 20,128 16,537 12,386 12,711
Employee benefit cost 1,192,314 2.93% 1,082,543 4.50% Net claims (18,997) (14,234) (9,106) (6,839) (6,724) (6,316)
Administrative expenses 585,620 1.44% 412,620 1.72% Net commission (3,174) (3,184) (3,138) (2,692) (2,700) (2,140)
Charity and donations 1,054 0.00% 1,143 0.00% Net change In insurance/takaful liabilities
Financial charges 9,683 0.02% 18,192 0.08% (other than outstanding claims) (15,897) (4,937) (9,490) (9,937) (5,126) (3,703)
Financial charges (10) (18) (24) (26) (8) -
Government taxes 639,483 1.57% 312,928 1.30%
Total expenses (1,129) (865) (1,267) (1,018) (1,057) (814)
Distribution paid / proposed to shareholders 500,000 1.23% - - Investment and other income 18,062 3,734 3,128 4,285 3,510 334
Retained in business 419,278 1.03% 498,562 2.07% Profit before tax 1,541 810 231 310 281 73
Profit after tax 908 498 174 191 217 56
Total wealth distributed 40,755,911 100.00% 24,048,513 100.00%
Cash Flow Summary

WEALTH DISTRIBUTION 2023 2022 Operating activities (566,180) 3,388,610 6,630,113 5,650,284 2,865,383 4,059,752
Investing activities (1,774,260) (14,012,886) (8,716,141) (4,757,080) (351,477) (189,734)
Net insurance benefits 47% 59% Financing activities (249,961) (89,801) 1,475,049 178,289 - -
Change in insurance liabilities 39% 21%
Share Information
Commission expense 6% 11%
Employee benefit cost 3% 5% Break-up value per share (Rupees) 17.67 14.99 13.00 15.93 14.10 12.00
Administrative expenses 1% 2% No. of shares 250,000,000 250,000,000 250,000,000 93,549,400 93,549,400 93,549,400
Government taxes 2% 1% Share price at year end (Rupees) 24.96 19.49 - - - -
Distribution paid / proposed to shareholders 1% 0% Highest share price during year (Rupees) 29.33 19.55 - - - -
Retained in business 1% 2% Lowest share price during year (Rupees) 11.80 19.00 - - - -
Total wealth distributed 100% 100% KSE 100 Index 62,451 40,420 44,596 43,755 40,735 37,067
Market price to break up value (Rupees) 1.41 1.30 - - - -
Face value (Rupees) 10 10 10 10 10 10
Wealth Distribution - 2023 Wealth Distribution - 2022 Market capitalization (Rupees) 6,240,000,000 4,872,500,000 - - - -

Distribution
2% Net insurance benefits 2%
1% 2%
3% Dividend per share (Rupees) 2 - - - - -
1% 1%
Change in insurance liabili�es 5%
Total dividend - (Rupees in '000) 500,000 - - - - -
6% 1% Cash dividend - (Rupees in '000) 500,000 - - - - -
Commission expense 11% Total dividend - (Rupees in '000) 500,000 - - - - -

Employee benefit cost

47% 59%
39% Administra�ve expenses
21%

Government taxes

Distribu�on paid / proposed to

Shareholders
Retained in business

98 99
 Annual Report 2023 Annual Report 2023

(39,840) (23,552)
24,050
2022
Capital Structure of the company Dupont Analysis

40,748
2023
498
Profit after Tax
As shown below, the Company is generating enough liquidity from its operations and the proportion of capital and
reserves attributable to shareholders is on average 98% of total capital over the last six years.

2023 2022 2021 2020 2019 2018

908
------------------------------------- Rs in ‘000 -------------------------------------

Net Profit Margin

2%
Ordinary share capital 2,500,000 2,500,000 2,500,000 935,494 935,494 935,494
Money ceded to Waqf fund 500 500 500 500 500 500
Surplus /(deficit) on revaluation of available

Total expenses
for sale investments - (5,496) (4,743) 361 (3,562) (3,928)

Total Income
Ledger account D 1,047,316 776,870 589,705 525,915 367,174 52,288

24,050
Unappropriated profit 869,752 476,416 164,266 28,345 19,685 138,535

2%
Return on Assets

1%

Total Income
Capital and reserves attributable to the

Less:
Company's equity holders 4,417,568 3,748,290 3,249,728 1,490,615 1,319,291 1,122,889

Borrowing - - 84,894 164,482 - -

40,748
Asset Turnover Ratio
1%
Company capital structure at the end of year 4,417,568 3,748,290 3,334,622 1,655,097 1,319,291 1,122,889

64,740
35%

4,426
2022
Capital and reserves attributable to the
Company's equity holders 100.00% 100.00% 97.45% 90.06% 100.00% 100.00%

82,405
3,685
2023
13.28%

47%

69,166
Return on equity

Total Assets

86,090
20.56%

3,748
Owner's Equilty

Non current Assets

Current assets
4,418

65,418
5%

Total Liabilities
Ownership

Add:
81,672
5%

69,166

60,764
4,654
2022
Total Assets

76,872
86,090
2022

4,800
2023
3,748
Owner's Equilty

4,418

Non current Liabeties

2023

Current Liabilities
Add:
100 101
 Annual Report 2023 Annual Report 2023

Six Year Financial Performance (2018-2023) Six Year Financial Performance (2018-2023)
Financial Ratio Horizontal Analysis - Balance Sheet
Profitability Ratios 2023 2022 2021 2020 2019 2018 Balance Sheet 2023 2022 2021 2020 2019 2018 2023 2022 2021 2020 2019 2018
Rs in Million %Increase /(decrease) over preceding years
Profit before tax / gross premium % 6.6 3.9 1.1 1.8 2.2 0.5 Fixed assets 319 367 370 402 564 241 -13.1% -0.9% -7.9% -28.8% 134.1% 12.7%
Profit before tax / net premium % 6.8 4.0 1.1 1.9 2.3 0.6 Investment property 1,065 944 939 855 876 855 12.9% 0.5% 9.8% -2.4% 2.5% 34.1%
Profit after tax / gross premium % 3.9 2.4 0.8 1.1 1.7 0.4
Investments 78,608 60,771 49,678 38,547 31,078 28,783 29.4% 22.3% 28.9% 24.0% 8.0% 7.8%
Profit after tax / net premium % 4.0 2.4 0.9 1.2 1.8 0.4
Net claims / net premium % (83.7) (70.1) (45.2) (41.4) (54.3) (49.7) Current assets - others 2,171 1,768 1,204 1,080 655 721 22.8% 46.9% 11.5% 65.0% -9.2% 32.6%
Commission / net premium % (14.0) (15.7) (15.6) (16.3) (21.8) (16.8) Cash and bank deposits 3,927 5,317 9,726 9,955 7,261 3,312 -26.2% -45.3% -2.3% 37.1% 119.2% 145.0%
Administration expenses / gross premium % (4.8) (4.1) (6.1) (6.0) (8.1) (6.1) Total Assets 86,090 69,166 61,918 50,839 40,434 33,912 24.5% 11.7% 21.8% 25.7% 19.2% 15.1%
Administration expenses / net premium % (5.0) (4.3) (6.3) (6.2) (8.5) (6.4)
Profit before tax / total income % 3.8 3.4 1.0 1.5 1.8 0.6
Profit after tax / total income % 2.2 2.1 0.7 0.9 1.4 0.4
Net investment income / net premium % 79.6 18.4 15.5 25.9 28.3 2.6 Equity 4,418 3,748 3,250 1,491 1,319 1,123 17.9% 15.3% 118.0% 13.0% 17.5% 5.5%
Insurance liabilities 79,560 63,409 56,933 47,033 36,736 31,747 25.5% 11.4% 21.0% 28.0% 15.7% 15.6%
Return to Shareholders Ratios Long term liabilities 103 164 230 384 398 - -37.1% -28.4% -40.1% -3.7% - -100.0%
Deferred taxation 657 377 232 207 96 41 74.5% 62.7% 12.1% 115.1% 135.9% 67.0%
Return on equity including retained balance Borrowings - - 89 178 - - - -100.0% -50.0% - - -
in Ledger Account D (PAT/total equity) % 20.56 13.28 5.35 12.81 16.46 4.99
Current liabilities 348 542 431 456 386 393 -35.7% 25.7% -5.4% 18.0% -1.7% 51.3%
Earnings per share (pre tax) Rs. 6.16 3.24 0.92 3.32 3.01 0.78
Earnings per share (after tax) Rs. 3.63 1.99 0.70 2.04 2.32 0.60 Other creditors and accruals 1,003 926 753 1,091 1,498 609 8.3% 22.9% -31.0% -27.2% 146.0% -2.7%
Return on total assets % 1.05 0.72 0.28 0.38 0.54 0.17 Total Equity and Liabilities 86,090 69,166 61,918 50,839 40,434 33,912 24.5% 11.7% 21.8% 25.7% 19.2% 15.1%
Earnings growth % 82.45 186.36 (9.01) (12.02) 487.08 (133.04)
Breakup value per share Rs. 17.67 14.99 13.00 15.93 14.10 12.00 Profit or loss account 2023 2022 2021 2020 2019 2018 2023 2022 2021 2020 2019 2018
Market price per share at the end of the year Rs. 24.96 19.49 - - - - Rs in Million %Increase /(decrease) over preceding years
Cash dividend per share Rs. 2.00 - - - - -
Cash dividend % 20% - - - - - Net premium revenue 22,686 20,315 20,128 16,537 12,386 12,711 11.7 0.9 21.7 33.5 (2.6) (4.4)
Dividend yield % 8% - - - - - Net investment income 18,062 3,734 3,128 4,285 3,510 334 383.7 19.4 (27.0) 22.1 950.3 (180.6)
Dividend payout % 55% - - - - - Net claims (18,997) (14,234) (9,106) (6,839) (6,724) (6,316) 33.5 56.3 33.2 1.7 6.5 44.0
Dividend cover - (Times) Times 1.82 - - - - - Net change in insurance liabilities (15,897) (4,937) (9,490) (9,937) (5,126) (3,703) 222.0 (48.0) (4.5) 93.9 38.4 (36.6)
Net commission expense (3,174) (3,184) (3,138) (2,692) (2,700) (2,140) (0.3) 1.5 16.6 (0.3) 26.2 8.4
Liquidity ratios Other / marketing and
Current ratio Times 0.77 0.95 1.04 1.28 0.96 1.09 administration expense (1,129) (865) (1,267) (1,018) (1,057) (814) 30.5 (31.7) 24.4 (3.6) 29.8 (11.5)
Cash & bank / current liability Times 0.32 0.58 0.64 0.91 0.74 0.74 Financial charges (10) (18) (24) (26) (8) - (46.8) (24.1) (6.9) 227.1 - -
Total liabilities / total equity Times 18.49 17.45 18.05 33.11 29.65 29.20 Profit before tax 1,541 810 231 310 281 73 90.2 250.5 (25.5) 10.3 287.5 (130.0)
Paid up capital / total assets % 2.90 3.61 4.04 1.84 2.31 2.76 Taxation (633) (313) (57) (119) (64) (16) 102.5 444.6 (51.8) 86.0 288.9 (122.8)
Equity / total assets % 5.13 5.42 5.25 2.93 3.26 3.31 Profit after tax 908 498 174 191 217 56 82.5 186.4 (9.0) (12.0) 287.1 (133.0)

102 103
 Annual Report 2023 Annual Report 2023

Graphical Representation Graphical Representation

Horizontal Analysis - Balance Sheet Horizontal Analysis - Balance Sheet
(Rs in Million) (Rs in Million)
Fixed assets Investment property Equity Insurance liabilities
564

4,418
402 79,560
367 370 3,748
319 1,065 3,250 63,409
944 939 855 876 56,933 47,033

1,491 36,736
1,319

2023 2022 2021 2020 2019 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019

Investments Current assets-others Long term liabilities Deferred taxation

657
78,608 398
384
60,771
49,678 377
230
2,171
38,547 1,768 164
31,078 232
1,204 207
1,080 103
655 96

2023 2022 2021 2020 2019 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019

Cash and bank deposits Total assets Borrowings Current liabilities

542

431 456
386
178 348
9,726 9,955 86,090

7,261
69,166
5,317 61,918 89
50,839
3,927 40,434
0 0 0

2023 2022 2021 2020 2019 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019

104 105
 Annual Report 2023 Annual Report 2023

Graphical Representation Graphical Representation

Horizontal Analysis - Balance Sheet Horizontal Analysis - Balance Sheet
(Rs in Million) (Rs in Million)

Other creditors and accruals Total equity and liabilities Net commission expense Other/marketing and administration expense

86,090

69,166

1,498 61,918 3,174 3,184 3,138

50,839
1,267
1,091 2,692 2,700 1,129 1,057
1,003 40,434 1,018
926 865
753

2023 2022 2021 2020 2019 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019

Net premium revenue Net investment income Financial charges Profit before tax

22,686 18,062
20,315 20,128 1,541
16,537 24 26

12,386 18 810

3,734 4,285 10 8
3,128 3,510 231 310 281

2023 2022 2021 2020 2019 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019

Net claims Net change in insurance liabilities Taxation Profit after tax
633

908
18,997
15,897 313
14,234
498
9,106 6,839 9,490 9,937
6,724
119 217
4,937 5,126
64 174 191
57

2023 2022 2021 2020 2019 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019

106 107
 Annual Report 2023 Annual Report 2023

Six Year Financial Performance (2018-2023) Segment Net Premium

Vertical Analysis - Balance Sheet
Balance Sheet 2023 2022 2021 2020 2019 2018 Individual
Accident and Non-unitised Group Family
Rs. Min. % Rs. Min. % Rs. Min. % Rs. Min. % Rs. Min. % Rs. Min. % Conventional Unit Linked Family Takaful
Health Investment Takaful Total
Business Business Unit Linked
Fixed assets 319 0.4 366 0.5 370 0.6 402 0.8 564 1.4 241 0.7 Business Link Business Business
Business
Investment property 1,065 1.2 944 1.4 939 1.5 855 1.7 876 2.2 855 2.5
Investments 78,608 91.3 60,770 87.9 49,678 80.2 38,547 75.8 31,078 76.9 28,783 84.9 2022 251,626 599 70,942 15,925,356 3,974,692 92,237 20,315,452
Current assets-others 2,171 2.5 1,769 2.6 1,204 1.9 1,080 2.1 655 1.6 721 2.1 2022 1.24% 0.00% 0.35% 78.39% 19.56% 0.45% 100.00%
Cash and bank deposits 3,927 4.6 5,317 7.7 9,726 15.7 9,955 19.6 7,260 18.0 3,312 9.8
2023 309,402 2,522 55,833 18,439,000 3,791,638 87,264 22,685,659
Total Assets 86,090 100.0 69,166 100.0 61,918 100.0 50,839 100.0 40,434 100.0 33,912 100.0 2023 1.36% 0.01% 0.25% 81.28% 16.71% 0.38% 100.00%

Equity 4,418 5.1 3,748 5.4 3,250 5.2 1,491 2.9 1,319 3.3 1,123 3.3
Insurance liabilities 79,560 92.4 63,409 91.7 56,933 91.9 47,033 92.5 36,736 90.9 31,747 93.6
Long term liabilities 103 0.1 164 0.2 230 0.4 384 0.8 398 1.0 - - 31-Dec-23
Deferred taxation 657 0.8 377 0.5 232 0.4 207 0.4 96 0.2 41 0.1
Borrowings - - - - 89 0.1 178 0.4 - - - - 1%
Current liabilities 348 0.4 542 0.8 431 0.7 456 0.9 386 1.0 393 1.2 0%
Other creditors and accruals 1,003 1.2 926 1.3 753 1.2 1,091 2.1 1,498 3.7 609 1.8 3%
Conven�onal Business
Total Equity and Liabilities 86,090 100.0 69,166 100.0 61,918 100.0 50,839 100.0 40,434 100.0 33,912 100.0 16%
0%
- - - - - - Accident and Health Business

Profit and Loss Account Non-uni�sed Investment Link Business

2023 2022 2021 2020 2019 2018
Rs. Min. % Rs. Min. % Rs. Min. % Rs. Min. % Rs. Min. % Rs. Min. %
Unit Linked Business
Net premium revenue 22,686 100.00 20,315 100.00 20,128 100.00 16,537 100.00 12,386 100.00 12,711 100.00
80%
Net investment income 18,062 79.62 3,734 18.38 3,128 15.54 4,285 25.91 3,510 28.34 334 2.63 Individual Family Takaful Unit Linked
Net claims (18,997) (83.74) (14,234) (70.07) (9,106) (45.24) (6,839) (41.35) (6,724) (54.29) (6,316) (49.68) Business

Net change in insurance liabilities (15,897) (70.07) (4,937) (24.30) (9,490) (47.15) (9,937) (60.09) (5,126) (41.38) (3,703) (29.13) Group Family Takaful Business

Net commission expense (3,174) (13.99) (3,184) (15.67) (3,138) (15.59) (2,692) (16.28) (2,700) (21.80) (2,140) (16.84)
Other/marketing and
administration expense (1,129) (4.98) (865) (4.26) (1,267) (6.29) (1,018) (6.16) (1,057) (8.53) (814) (6.40)
Financial charges (10) (0.04) (18) (0.09) (24) (0.12) (26) (0.16) (8) (0.06) - -
Profit before tax 1,541 6.79 810 3.99 231 1.15 310 1.88 281 2.27 73 0.57
Taxation (633) (2.79) (313) (1.54) (57) (0.29) (119) (0.72) (64) (0.52) (16) (0.13)
Profit after tax 908 4.00% 498 2.45% 174 0.86 191 1.16 217 1.75 56 0.44
31-Dec-22

0.35%
0.45% 0.00%
Conven�onal Business
19.56%
Accident and Health Business
1.24%
Non-uni�sed Investment Link Business

Unit Linked Business

78.39%
Individual Family Takaful Unit Linked
Business
Group Family Takaful Business

108 109
 Annual Report 2023 Annual Report 2023

Quarterly Analysis 2023 Share Price Analysis

2023 Economic conditions Date High Low Volume
Q1 Q2 Q3 Q4 Expectations for macro economic indicators 31-Jan-23 20.25 17.51 10,542
(like inflation, forex reserves, interest rates, etc.) 28-Feb-23 20.42 16.55 21,045
Net premium / contribution revenue (PKR 000) 5,784,673 5,163,787 5,903,599 5,833,600
prevailing in the country impacts the share price. 31-Mar-23 21.10 16.28 3,333
Net investment income (PKR 000) *** 1,670,581 2,974,750 3,899,351 6,533,578
30-Apr-23 15.10 14.00 12,250
Net Insurance benefits (PKR 000) 4,180,705 4,384,018 5,049,910 5,382,370
Political stability / instability 31-May-23 15.10 14.00 12,250
Profit after tax (PKR 000) 130,498 291,344 274,423 211,810
Political noise or stability is the country may impact foreign 30-Jun-23 15.19 11.80 9,423
Total OCI (PKR 000) 130,828 291,771 279,162 217,517
investors' outlook which ultimately impact the share price. 31-Jul-23 16.66 13.74 21,647
31-Aug-23 22.34 16.02 15,389
*** it includes investment income and net fair value gains or losses on financial assets
Stock market / investor sentiments 30-Sep-23 22.58 18.56 1,400
Change in the investor sentiment due to changes in investment 31-Oct-23 23.70 17.01 11,083
climate in general or the stock market in particular can also impact 30-Nov-23 29.33 20.40 25,889
Net premium / contribution revenue 31-Dec-23 27.95 20.52 42,611
the share price.
Net premium / contribution revenue Net investment income (PKR 000)
6,533,578 Company performance
Announcements regarding financial results or profit distribution
5,903,599
5,784,673 5,833,600 by the Company and major innovation or development in business
that may lead to future growth in earnings and dividends affect
3,899,351 the shares price.
2,974,750
5,163,787 Changes in government policies & laws
1,670,581 Changes in laws or government polices could be perceived as positive
or negative for insurance companies. Policies such as interest rate,
Economic and tax reforms may also affect the share price.

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Company financial strength

Press releases on the financial strength of Company by independent
bodies may also impact on share price.
Net Insurance benefits (PKR 000) Profit after tax (PKR 000)
5,382,370
5,049,910 291,344
274,423
4,180,705 4,384,018

211,810 Share price

130,498
35
30
25
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
20
15
Total OCI (PKR 000)
10
291,771 279,162
5
217,517
0
130,828

High Low
Q1 Q2 Q3 Q4

110 111
 Annual Report 2023 Annual Report 2023

INDEPENDENT AUDITOR’S REPORT

Following are the key audit matters:

S. No. Key Audit Matters How the matter was addressed in our audit
To the members of Adamjee Life Assurance Company Limited
1. Valuation and Classification of Investments Our audit procedures included the following:
Report on the Audit of the Financial Statements
Refer note 3.17 and 9, 10, 11, 12 and 13 of the • Obtained an understanding of controls around
annexed financial statements disclosing recognition and measurement of investments to
Opinion
investment of Rs. 78.607 billion as at December ensure that it is appropriately designed to ensure
31, 2023, that constitute a significant component appropriate valuation of the investment;
We have audited the annexed financial statements of Adamjee Life Assurance Company Limited (the Company),
(91.3%) of total assets of the Company.
which comprise the statement of financial position as at December 31, 2023, the statement of profit and loss, the
• Checked that net unrealised gain / loss arising on
statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year
The Company's investment portfolio comprises of subsequent measurement of investments are
then ended, and notes to the financial statements, including material accounting policy information and other
government securities, debt securities, equity appropriately are accounted for, in the financial
explanatory information and we state that we have obtained all the information and explanations which, to the best
securities, mutual funds and term deposits. statements;
of our knowledge and belief, were necessary for the purpose of the audit.
We identified the classification, valuation and • Verified number of scripts of investments by
In our opinion and to the best of our information and according to the explanations given to us, the statement of
impairment of investments as key audit matter obtaining external statements as at December 31,
financial position, the profit and loss, the statement of comprehensive income, the statement of changes in equity
because of the significance of investments and 2023 and traced securities in such statements with
and the statement of cash flows together with the notes, comprising material accounting policy information and other
management's judgment involved in classification the books and records of the Company;
explanatory information forming part thereof conform with the accounting and reporting standards as applicable in
and impairment.
Pakistan and give the information required by the Insurance Ordinance, 2000 and the Companies Act, 2017 (XIX of
• Evaluated the valuation of securities by comparing
2017), in the manner so required and respectively give a true and fair view of the state of Company’s affairs as at
the quoted prices of Exchange, MUFAP and other
December 31, 2023 and of the profits, the comprehensive income, the changes in equity and its cash flows for the
external sources and
year then ended.
• Assessing the relevant presentation and disclosures
Basis for opinion
made in the financial statements to ascertain
whether these are complied with accounting and
We conducted our audit in accordance with the International Standards on Auditing (ISAs) as applicable in Pakistan.
reporting standards as applicable in Pakistan.
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company in accordance with the International
Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants as adopted by the Institute of 2. Valuation of Insurance / Takaful Liabilities Our audit procedures included the following:
Chartered Accountants of Pakistan (the Code) and we have fulfilled our other ethical responsibilities in accordance
with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis Refer note 3.4 and 19 of the annexed financial • Assessed the appropriateness of the Company’s
for our opinion. statements. accounting policy for recording of insurance / takaful
liabilities in line with requirements of applicable
Emphasis of Matter The Company's insurance / takaful liabilities accounting and reporting standards;
excluding outstanding claims amounts to Rs.
We draw attention to note 25.1 to the financial statements where it is disclosed that the Company has challenged the 76.183 billion which represent 93.2% of its total • Obtained an understanding of the management
scope and applicability of Punjab Sales Tax (PST) and Sindh Sales Tax (SST) on life insurance services. liabilities. Valuation of insurance / takaful contract process and controls around recognition and
liabilities involve significant judgment, actuarial valuation of insurance / takaful liabilities to ensure
Our opinion is not modified in this respect. assumptions such as; mortality, persistency, that it is appropriately designed;
morbidity, investment returns, expense levels and
Key Audit Matters inflation, and the use of methods adopted for • Evaluated the completeness, accuracy and reliability
actuarial valuations. of the underlying data utilised by the management to
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the support the actuarial valuation;
financial statements of the current period. These matters were addressed in the context of our audit of the financial We identified the valuation of insurance / takaful
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these liabilities as key audit matter because of the • Involved an independent actuarial expert to assess
matters. significant judgements and estimations involved in the reasonableness of assumptions used by the
determining insurance / takaful liabilities excluding management’s expert in the valuation of insurance
outstanding claims. liabilities and

• Assessed the adequacy of Company’s disclosures

as per the relevant accounting and reporting
standards.

112 113
 Annual Report 2023 Annual Report 2023

Auditor’s Responsibilities for the Audit of the Financial Statements

S. No. Key Audit Matters How the matter was addressed in our audit
3. Premiums / Contributions Our audit procedures included the following: Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Refer note 3.1 and 26 of the annexed financial • Obtain understanding and evaluated the design and Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
statements relating to premiums / contributions. implementation of controls over the process of with ISAs as applicable in Pakistan will always detect a material misstatement when it exists. Misstatements can
capturing, processing and recording of premiums / arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
The Company generates its income primarily from contributions; expected to influence the economic decisions of users taken on the basis of these financial statements.
premiums / contributions. Premiums / contributions
from insurance policies amounts to Rs. 22.686 • On a sample basis tested occurrence of premiums / As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and
billion which comprise of 55.67% of the total contributions earned from the underlying policies maintain professional skepticism throughout the audit. We also:
income. issued to insurance / takaful policyholders;
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
We identified premiums / contributions as a key • Tested the policies on sample basis, and evaluated design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
audit matter because it is a key performance that these were recorded in the appropriate appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud
indicator of the Company and possess a risk of accounting period and is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
overstatement by recording transactions that may misrepresentations, or the override of internal control.
not have occurred. • Tested whether the payments have been received
from the policyholders before the recognition of • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
premiums / contributions (other than group life and appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
health insurance / takaful). Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
Information Other than the Financial Statements and Auditor’s Report Thereon
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the
Management is responsible for the other information. The other information comprises the information included in the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
Annual Report but does not include the financial statements and our auditor’s report thereon. doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such
Our opinion on the financial statements does not cover the other information and we do not express any form of disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
assurance conclusion thereon. the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue
as a going concern.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and
knowledge obtained in the audit or otherwise appears to be materially misstated. whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard. We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our
Responsibility of Management and Board of Directors for the Financial Statement audit.

Management is responsible for the preparation and fair presentation of the financial statements in accordance with We also provide the Board of Directors with a statement that we have complied with relevant ethical requirements
the accounting and reporting standards as applicable in Pakistan and the requirements of the Insurance Ordinance, regarding independence, and to communicate with them all relationships and other matters that may reasonably be
2000 and the Companies Act, 2017 (XIX of 2017) and for such internal control as management determines is thought to bear on our independence, and where applicable, related safeguards.
necessary to enable the preparation of financial statements that are free from material misstatement, whether due
to fraud or error. From the matters communicated with the Board of Directors, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
alternative but to do so. Board of Directors are responsible for overseeing the Company’s financial reporting process. benefits of such communication.

114 115
 Annual Report 2023

Report on Other Legal and Regulatory Requirements

Based on our audit, we further report that in our opinion:

a) proper books of account have been kept by the Company as required by the Insurance Ordinance, 2000 and the
Companies Act, 2017 (XIX of 2017);

b) the statement of financial position, the statement of profit and loss, the statement of comprehensive income, the
statement of changes in equity and the statement of cash flows together with the notes, comprising material
accounting policy information and other explanatory information thereon have been drawn up in conformity with the
Insurance Ordinance, 2000, the Companies Act, 2017 (XIX of 2017) and are in agreement with the books of account;

c) investments made, expenditure incurred and guarantees extended during the year were for the purpose of the
Company’s business;

d) the apportionment of assets, liabilities, revenue and expenses between two or more funds have been performed in
accordance with the advice of the appointed actuary; and

e) Zakat was deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the
Company and deposited in Central Zakat Fund established under section 7 of that Ordinance.

The engagement partner on the audit resulting in this independent auditor’s report is Hena Sadiq.

Chartered Accountants

Place: Karachi
Date: April 01, 2024

UDIN: AR202310057OIAbSoTMm

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 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Statement of Financial Position Statement of Profit or Loss
As at December 31, 2023 For the year ended December 31, 2023

(Rupees in ’000) (Rupees in ’000)

Assets

Property and equipment 5 220,156 215,532 Premium / contribution revenue 23,350,828 20,948,801
Intangible assets 6 25,906 26,579 Premium / contribution ceded to reinsurers /
Right of use assets 7 72,502 124,420 (retakaful operators) (665,169) (633,349)
Investment property 8 1,065,394 943,669 Net premium / contribution revenue 26 22,685,659 20,315,452
Investments
Equity securities 9 8,556,762 8,292,169 Investment income 27 11,854,800 5,923,579
Government securities 10 61,365,683 37,930,238 Net realised fair value gains / (losses) on financial assets 28 1,975,557 (237,645)
Debt securities 11 3,629,033 4,254,845 Net fair value gains / (losses) on financial assets at fair value
Term deposits 12 75,000 2,276,000 through profit or loss - unrealised 29 3,223,460 (2,682,111)
Mutual funds 13 4,981,341 8,017,302 Net rental income 2,988 3,000
Loan secured against life insurance policies 35,975 42,163 Net unrealised gain on investment property 8 121,725 4,275
(Insurance / takaful) / (reinsurance / retakaful) receivables 14 94,143 62,456 Other income 30 883,519 723,055
Other loans and receivables 15 1,379,058 778,323 18,062,049 3,734,153
Taxation - payments less provision 606,950 843,706
Prepayments 16 55,169 41,655 Net income 40,747,708 24,049,605
Cash and bank 17 3,926,596 5,316,997
Total Assets 86,089,668 69,166,054 Insurance / takaful benefits 32 (19,435,671) (14,589,534)
Recoveries from reinsurers / retakaful operators 32 446,254 363,385
Equity and Liabilities Claims related expenses (7,586) (8,287)
Net insurance / takaful benefits (18,997,003) (14,234,436)
Capital and reserves attributable to Company’s equity holders
Net change in insurance / takaful
Ordinary share capital 18 2,500,000 2,500,000
liabilities (other than outstanding claims) (15,896,770) (4,937,305)
Money ceded to Waqf fund 500 500
Acquisition expenses 33 (3,174,136) (3,184,327)
Deficit on revaluation of available for sale investments - (5,496)
Marketing and administration expenses 34 (1,117,166) (858,321)
Ledger account D 1,047,316 776,870
Other expenses 35 (11,748) (6,714)
Unappropriated profit 869,752 476,416
(20,199,820) (8,986,667)
Total Equity 4,417,568 3,748,290

Total expenses (39,196,823) (23,221,103)
Liabilities
Finance costs 36 (9,683) (18,192)
Insurance / takaful liabilities 19 79,559,988
63,408,661
Retirement benefit obligations 20 - Profit before tax 1,541,202
4,866 810,310
Deferred taxation 21 657,296
376,644
Lease liabilities 22 103,455 Income tax expense
159,592 37 (633,127) (312,608)
Premium / contribution received in advance 246,282
367,165
(Insurance / takaful) / (reinsurance / retakaful) payables 23 102,148 Profit after tax for the year
175,083 908,075 497,702
Unclaimed dividend 39
-
Other creditors and accruals 24 1,002,892 Earnings (after tax) per share - Rupees
925,753 38 3.63 1.99
Total Liabilities 81,672,100
65,417,764

Total Equity and Liabilities 86,089,668 69,166,054 The annexed notes 1 to 49 form an integral part of these financial statements.

Contingencies and commitments 25

The annexed notes 1 to 49 form an integral part of these financial statements.

Shahmeer Khalid Butt Shahmeer Khalid Butt

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 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Statement of Comprehensive Income Statement of Changes in Equity
For the year ended December 31, 2023 For the year ended December 31, 2023

Attributable to equity holders’ of the Company

(Rupees in ’000)
Profit after tax for the year Deficit on
- as per statement of profit or loss 908,075 497,702 Money
revaluation
Share ceded to Ledger ac- Unappropri-
Other comprehensive income: of available Total
capital Waqf fund count D * ated profit
for sale in-
Item that will not be reclassified subsequently to statement vestments
of profit or loss
------------------------------------------- (Rupees in ‘000) -----------------------------------------

Actuarial gain on retirement benefit scheme 20.2.3 9,356 2,272 Balance as at January 01, 2022 2,500,000 500 (4,743) 589,705 164,266 3,249,728
Related deferred tax (including rate change) (3,649) (659)
5,707 1,613 Total comprehensive income for the year
Item that will be reclassified subsequently to statement ended December 31, 2022
of profit or loss
- Profit for the year after tax - - - - 497,702 497,702

- Other comprehensive loss - - (753) - 1,613 860
Change in unrealised loss on revaluation of available - - (753) - 499,315 498,562
for sale investments 28 - (7,341)
Gain on disposal transferred to statement of profit or loss 8,203 6,249 Surplus for the year retained in
8,203 (1,092) statutory funds - - - 187,165 (187,165) -

Related deferred tax (2,707) 339 Balance as at December 31, 2022 2,500,000 500 (5,496) 776,870 476,416 3,748,290
5,496 (753)
Balance as at January 01, 2023 2,500,000 500 (5,496) 776,870 476,416 3,748,290

Total other comprehensive income 11,203 860
Total comprehensive income for the year
ended December 31, 2023
Total comprehensive income for the year 919,278 498,562
- Profit for the year after tax - - - - 908,075 908,075
- Other comprehensive income - - 5,496 - 5,707 11,203
The annexed notes 1 to 49 form an integral part of these financial statements. - - 5,496 - 913,782 919,278

Transaction with owners recorded directly
in the equity

Interim dividend @ Rs. 1 per share i.e 10% - - - - (250,000) (250,000)

Surplus for the year retained in
statutory funds - - - 270,446 (270,446) -

Balance as at December 31, 2023 2,500,000 500 - 1,047,316 869,752 4,417,568


*This includes balances maintained in accordance with the requirements of Section 35 of the Insurance Ordinance, 2000 read with Rule
14 of the Insurance Rules, 2017 to meet solvency margins, which are mandatorily maintained for carrying on of the life insurance business.

The annexed notes 1 to 49 form an integral part of these financial statements.

Shahmeer Khalid Butt Shahmeer Khalid Butt

120 121
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Statement of Cash Flows Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

(Rupees in ’000)
Operating Cash Flows 1. LEGAL STATUS AND NATURE OF BUSINESS

(a) Underwriting activities 1.1 Adamjee Life Assurance Company Limited (the Company) was incorporated in Pakistan on August 04, 2008 as a
Insurance premium / contribution received 23,224,261 20,884,440 public unlisted company under the Companies Act, 2017 (Previously Companies Ordinance,1984). The Company
Reinsurance premium / retakaful contribution paid (317,853) (11,526) started its operations from April 24, 2009. The Company was converted to a listed company on March 04, 2022. It
Claims paid (19,188,700) (13,059,500) is listed on Pakistan Stock Exchange. Registered office of the Company is at 5th floor, Islamabad Stock Exchange
Commission paid (1,993,148) (1,965,964) Towers, 55-B, Jinnah Avenue, Blue Area, Islamabad while its principal place of business is at Adamjee House, 3rd
Marketing and administrative expenses paid (2,168,665) (2,017,451) and 4th Floor, I.I Chundrigar Road, Karachi. The Company is a subsidiary of Adamjee Insurance Company Limited.
Net cash flow (used in) / generated from underwriting activities (444,105) 3,829,999
The Company is engaged in life insurance business carrying on non-participating business only. In accordance with
(b) Other operating activities the requirements of the Insurance Ordinance, 2000, the Company has established a shareholders’ fund and the
Income tax paid (122,075) (441,389) following statutory funds in respect of each class of its life insurance business:
Total cash flow (used in) / generated from all operating activities (566,180) 3,388,610

Investment activities - Conventional Business

Profit / return received 10,963,573 5,621,111 - Accident and Health Business
Dividend received 990,335 616,730 - Individual Life Non-unitised Investment Linked Business
Rental received 2,988 3,000 - Individual Life Unit Linked Business
Payment for investments (488,346,588) (650,069,484) - Individual Family Takaful Business (refer note 1.2)
Proceeds from investments 474,694,356 629,943,404 - Group Family Takaful Business (refer note 1.2)
Fixed capital expenditure (102,417) (130,708)
Loan to policyholders 11,050 1,396 1.2 The Company was granted authorisation on May 04, 2016 under Rule 6 of Takaful Rules, 2012 to undertake Takaful
Proceeds from sale of property and equipment 12,443 1,665 Window Operations in respect of family takaful products by Securities and Exchange Commission of Pakistan (SECP)
Total cash flow used in investing activities (1,774,260) (14,012,886) and subsequently the Company commenced Window Takaful Operations from July 14, 2016. The Company formed
a Waqf Fund namely the Adamjee Life Assurance Company Limited - Window Takaful Operations Waqf Fund (here-
Financing activities in-after referred to as the Participant Takaful Fund (PTF) on December 22, 2015 under a Waqf Deed executed by
the Company with the cede amount of Rs. 500,000. The cede money is required to be invested in Shariah compliant
Borrowings - (89,801) investments and any profit thereon can be utilised only to pay benefits to participants or defray PTF expenses. Waqf
Interim dividend paid (249,961) - deed also governs the relationship of the Company and policyholders for the management of Takaful operations,
Total cash flow used in financing activities (249,961) (89,801) investment of policyholders’ funds and shareholders’ funds as approved by the Shariah Advisor appointed by the
Company.
Net cash outflows from all activities (2,590,401) (10,714,076)
Cash and cash equivalent at the beginning of the year 6,591,997 17,306,073 The Company issued supplemental policies to the Window Takaful Operations Waqf Fund on October 29, 2019 to
Cash and cash equivalent at the end of the year 17.2 4,001,596 6,591,997 include Group Family Participant’s Takaful Fund business in existing Window Takaful Operations Waqf Fund and the
Reconciliation to statement of profit and loss same was authorised by the Securities and Exchange Commission of Pakistan (SECP) on December 11, 2019 and
Cash flow from all operating activities (566,180) 3,388,610 the Company commenced its Group Family Takaful Business in the second quarter of 2020.
Depreciation and amortisation expense (138,325) (124,198)
Financial charge expense (17,931) (29,245) 2. BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE
Write offs (5,503) (4,160)
Impact of gains directly charged to OCI (9,356) (2,272) 2.1 These financial statements have been prepared in accordance with the accounting and reporting standards as
Profit on disposal of property and equipment 1,407 948 applicable in Pakistan. The accounting and reporting standards comprise of:
Profit / (loss) on disposal of investment 1,975,557 (237,645)
- International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board
Rental income 2,988 3,000 (IASB) as are notified under the Companies Act, 2017;
Dividend income 916,496 693,948
Other investment income 11,951,497 5,958,287 - Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan, as
Increase / (decrease) in assets other than cash (231,839) 229,874 are notified under the Companies Act, 2017; and
Increase in liabilities other than borrowings (16,191,536) (6,697,334)
Surplus / (deficit) on revaluation of investment 3,223,460 (2,682,111) - Provisions of and directives issued under the Companies Act, 2017, Insurance Ordinance, 2000, Insurance Rules,
2017, Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012.
Profit after taxation 908,075 497,702
In case the requirements differ, provisions or directives of the Companies Act, 2017, the Insurance Ordinance, 2000,
The annexed notes 1 to 48 form an integral part of these financial statements.
the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017, and Takaful Rules, 2012 have been followed.

Shahmeer Khalid Butt

122 123
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

2.2 Basis of measurement Other than the aforesaid amendments, the International Accounting Standards Board (IASB) has also issued the
following standards which have not been adopted locally by the Securities and Exchange Commission of Pakistan:
These financial statements have been prepared under the historical cost convention except as disclosed in material
accounting policy information relating to financial instruments, investments, investment property, borrowings, lease - IFRS 1 – First Time Adoption of International Financial Reporting Standards
liabilities, retirement benefits obligation and insurance liabilities.
The SECP vide SRO 1715 (I) / 2023 dated November 21, 2023 has directed the companies engaged in insurance/
2.3 Functional and presentation currency takaful and re-insurance/re-takaful to follow IFRS 17 from January 01, 2026. The Company is in the process of
determination of impact assessement of IFRS - 17 on the Company’s financial statments.
These financial statements have been presented in Pakistan Rupee, which is the Company’s functional and presentation
currency. Amounts presented have been rounded off to the nearest thousand unless otherwise stated. 2.4.1 IFRS 9 ‘Financial Instruments’ is effective since reporting year ended December 31, 2019. It replaces the existing
guidance in IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 includes revised guidance on the
2.4 Amendments and improvements that are effective for the year ended December 31, 2023 classification and measurement of financial instruments, a new expected credit loss model for calculating impairment on
financial assets, and new general hedge accounting requirements. It also carries forward the guidance on recognition
The following amendments are effective for the year ended December 31, 2023. These amendments are either and derecognition of financial instruments from IAS 39.
not relevant to the Company’s operations or are not expected to have significant impact on the Company’s financial
statements other than certain additional disclosures. Amendment to IFRS 4 ‘Insurance Contracts’ - Applying IFRS 9 ‘Financial Instruments with IFRS 4 addresses issue
arising from the different effective dates of IFRS 9 and the forthcoming new standard IFRS 17 ‘Insurance Contracts’.
Effective from The amendments introduces two alternative options for entities issuing contracts within the scope of IFRS 4, notably
accounting period a temporary exemption and an overlay approach. The temporary exemption enables eligible entities to defer the
beginning on or after:
implementation date of IFRS 9. The overlay approach allows an entity applying IFRS 9 from 1 July 2018 onwards to
- Amendments to IAS 1 ‘Presentation of Financial Statements’ - Disclosure of January 01, 2023 remove from the statement of profit or loss the effects of some of the accounting mismatches that may occur from
accounting policies applying IFRS 9 before IFRS 17 is applied.

- Amendments to IAS 8 ‘Accounting Policies, Changes in Accounting Estimates January 01, 2023 The Company has determined that it is eligible for the temporary exemption option since the Company has not
and Errors’ - Definition of accounting estimates
previously applied any version of IFRS 9, its activities are predominantly connected with insurance as the percentage
- Amendments to ‘IAS 12 Income Taxes’ - deferred tax related to assets January 01, 2023 of the total carrying amount of its liabilities connected with insurance relative to the total carrying amount of all its
and liabilities arising from a single transaction. liabilities is greater than 95 percent and the Company does not engage in significant activities unconnected with
insurance based on historical available information. Under the temporary exemption option, the Company can defer
- Amendments to IAS 12 ‘ Income taxes’ - International Tax Reform — January 01, 2023 the application of IFRS 9 until the application of IFRS 17.
Pillar Two Model Rules

New amendments that are not yet effective: To determine the appropriate classification of financial assets under IFRS 9, an entity would need to assess the
contractual cash flows characteristics of any financial asset. Indeed, the contractual terms of the financial asset give
The following amendments are effective for accounting periods, beginning on or after the date mentioned against each rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal amount
of them. These amendments are either not relevant to the Company’s operations or are not expected to have significant outstanding (“SPPI”) i.e. cash flows that are consistent with a basic lending arrangement. In a basic lending arrangement,
impact on the Company’s financial statements other than certain additional disclosures. consideration for the time value of money and credit risk are typically the most significant elements of interest.

Effective from IFRS 9 defines the terms “principal” as being the fair value of the financial asset at initial recognition, and the “interest”
accounting period as being compensation for (i) the time value of money, and (ii) the credit risk associated with the principal amount
beginning on or after: outstanding during a particular period of time.

- Amendments to IFRS 16 ‘Leases’ - Clarification on how seller-lessee January 01, 2024
subsequently measures sale and leaseback transactions 2.5 The tables below set out the fair values as at the end of reporting year and the amount of change in the fair value
during that year for the following two groups of financial assets separately:
- Amendments to IAS 1 ‘Presentation of Financial Statements’ -
Non-current liabilities with Convents along with Classification of liabilities a) financial assets with contractual terms that give rise on specified dates to cash flows that are solely payments of
as current or non-current January 01, 2024 principal and interest (“SPPI”) on the principal amount outstanding, excluding any financial asset that meets the

- Amendments to IAS 7 ‘Statement of Cash Flows’ and ‘IFRS 7 January 01, 2024 definition of held for trading in IFRS 9, or that is managed and whose performance is evaluated on a fair value
‘Financial instruments disclosures’ - Supplier Finance Arrangements basis, and
Amendments to IAS 1 ‘Presentation of Financial Statements’ - Disclosure of
accounting policies b) all other financial assets
- Amendments to IAS 21 ‘The Effects of Changes in Foreign Exchange Rates’ -
Clarification on how entity accounts when there is long term lack of Exchangeability January 01, 2025

124 125
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

3. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

As at December 31, 2023
During the year, the Company adopted Disclosure of Accounting Policies (Amendments to IAS 1) from January 01,
Fail the SPPI test Pass the SPPI test 2023. The amendments require the disclosure of ‘material’, rather than ‘significant’, accounting policies. Although the
Change in Change in
unrealised unrealised
amendments did not result in any changes to the accounting policies themselves
Fair value (loss) / gain Fair value (loss) / gain
during the during the The material accounting policy information adopted in the preparation of these financial statements are consistent with
year year those of the previous financial year.

---------------------- (Rupees in ‘000) ------------------------ 3.1 Types of Insurance / Window Takaful Operations
Financial assets
Cash at bank 3,916,793 - - -
Equity securities 8,556,762 1,644,201 - - a) Conventional Business
Government securities 61,365,683 (127,107) - -
Debt securities 3,629,033 (44,111) - - The Conventional Business includes individual life, group life and group credit life assurance.
Term deposits - - 75,000 -
Mutual funds 4,981,341 1,852,193 - -
Loan secured against life insurance policies - - 35,975 -
i) Individual life
Loan to employees 23,551 - - -
82,473,163 3,325,176 110,975 - The individual life business segment provides coverage to individuals against deaths and disability under
conventional policies issued by the Company. Additional riders are included on the discretion of the policyholder.
The business is written through Bancassurance, tele-sales and through website.
As at December 31, 2023
Gross carrying amount of financial Assets that pass the SPPI test (Rupees in ‘000)
AAA AA+ AA AA- A+ A A- A-1 A-1+ B3 Unrated Total Revenue recognition
Loan secured against life insurance policies - - - - - - - - - - 35,975 35,975
Term deposits - - - 75,000 - - - - - - - 75,000 First year individual life premiums are recognised once the related policies have been issued and the premium is
- - - 75,000 - - - - - - 35,975 110,975
received. Renewal premiums are recognised upon receipt of premium.

Recognition of policyholders’ liabilities
As at December 31, 2022
Fail the SPPI test Pass the SPPI test Policyholders’ liabilities included in the statutory fund are determined based on the appointed actuary’s valuation
Change in Change in conducted as at the reporting date, in accordance with Section 50 of the Insurance Ordinance, 2000.
unrealised unrealised
Fair value Fair value
loss during loss during Claim expenses
the year the year
---------------------- (Rupees in ‘000) -------------------------- Claim expenses are recognised on the earlier of the policy expiry or the date when the intimation of the insured
event giving rise to the claim is received. Surrender of conventional business policies is made after these have
Financial assets
been approved in accordance with the Company’s policy.
Cash at bank 5,307,056 - - -
Equity securities 8,292,169 (1,823,506) - -
Government securities 37,930,238 (64,676) - - Liability for outstanding claims includes amounts in relation to unpaid reported claims and is stated at estimated claims
Debt securities 4,254,845 (23,190) - - settlement cost. Full provision is made for the estimated cost of claims incurred and reported till the date of reporting.
Term deposits - - 2,276,000 -
Mutual funds 8,017,302 (691,709) - - Liability for claims “Incurred But Not Reported” (IBNR) is included in the policyholders’ liabilities in accordance with
Loan secured against life insurance policies - - 42,163 - the estimates recommended by the appointed actuary.
Loan to employees 21,873 - - -
63,823,483 (2,603,081) 2,318,163 -
ii) Group life and group credit life

As at December 31, 2022 Group Life contracts are mainly issued to employers to ensure their commitments to their employees as required
Gross carrying amount of financial Assets that pass the SPPI test (Rupees in ‘000)
under the The West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968.
AAA AA+ AA AA- A+ A A- A-1 A-1+ B3 Unrated Total
Loan secured against life insurance policies - - - - - - - - - - 42,163 42,163
Term deposits - 400,000 - - 875,000 1,001,000 - - - - - 2,276,000 The group life business segment provides coverage to members / employees of business enterprises and
- 400,000 - - 875,000 1,001,000 - - - - 42,163 2,318,163 corporate entities, against death and disability under group life assurance schemes issued by the Company. The
group credit life business segment provides coverage to a group of members or subscribers registered under a
common platform against death and disability. The business is written mainly through direct sales force.

126 127
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

Revenue recognition c) Non-unitised Investment Linked Business

Premiums are recognised as and when due. In respect of certain group policies the Company continues to provide Individual Life Non-unitised Investment Linked Business provides life assurance coverage to individuals under
insurance cover even if the premium is received after the grace period. Provision for unearned premiums is universal life policies issued by the Company. Benefits are expressed in terms of account value of the policyholder
included in the policyholders’ liabilities. account which is related to the market value of the underlying assets of the investment fund. The risk underwritten
is mainly death and disability. This business is mainly written through bancassurance channel.
Recognition of policyholders’ liabilities
Revenue recognition
Policyholders’ liabilities included in the statutory fund are determined based on the appointed actuary’s valuation
conducted as at the reporting date, in accordance with Section 50 of the Insurance Ordinance, 2000. First year individual life premiums are recognised once the related policies have been issued and the premium
is received. Renewal premiums are recognised upon receipt of premium. Single premiums are recognised once
Claim expenses the related policies are issued against the receipts of premium. Premium of riders like ‘Waiver of Premium’ will be
recognised upon actuarial assumptions where actuary deems that all premiums due have been received.
Claim expenses are recognised on the date the insured event is intimated.
Recognition of policyholders’ liabilities
Liability for outstanding claims includes amounts in relation to unpaid reported claims and is stated at estimated
claims settlement cost. Full provision is made for the estimated cost of claims incurred and reported till the date of Policyholders’ liabilities included in the statutory fund are determined based on the appointed actuary’s valuation
reporting. conducted as at the reporting date, in accordance with Section 50 of the Insurance Ordinance, 2000.

Liability for claims “Incurred But Not Reported” (IBNR) is included in the policyholders’ liabilities in accordance with Claim expense
the estimates recommended by the appointed actuary.
Claim expenses are recognised on the earlier of the policy expiry or the date when the intimation of the event
Experience refund of premium giving rise to the claim is received. Claim of ‘Waiver of Premium’ is created when intimated with the amount to be
applied by the Company on behalf of policyholder.
Experience refund of premium payable to policyholders’ is included in policyholders’ liability in accordance with the
policy of the Company and the advice of the appointed actuary. Surrender of Non-unitised Investment Linked Business policies is made after these have been approved in
accordance with the Company’s policy.
b) Accident and Health Business
Liability for outstanding claims includes amounts in relation to unpaid reported claims and is stated at estimated
Accident and Health Business provides fixed pecuniary benefits or benefits in the nature of indemnity or a claims settlement cost. Full provision is made for the estimated cost of claims incurred and reported till the date of
combination of both in case of accident or sickness to individuals. The risk underwritten is mainly related to reporting.
medical expenses relating to hospitalisation and death by accidental means. This business is written through
direct sales force. Maturity claim expenses in Non-unitised Investment Linked business are recognised when the policy completes
the benefit term.
Revenue recognition
Liability for claims “Incurred But Not Reported” (IBNR) is included in the policyholders’ liabilities in accordance with
Premiums are recognised once the related policies have been issued and the premiums have been received. the estimates recommended by the appointed actuary.

Recognition of policyholders’ liabilities d) Unit Linked Business

Policyholders’ liabilities included in the statutory fund are determined based on the appointed actuary’s valuation Individual Life Unit Linked Business provides life assurance coverage to individuals under unit-linked investment
conducted as at the reporting date, in accordance with Section 50 of the Insurance Ordinance, 2000. policies issued by the Company. Benefits are expressed in terms of account value of the policyholder account
which is related to the market value of the underlying assets of the investment fund. Various types of riders
Claim expenses (accidental death, family income benefits etc.) are also sold along with the basic policies. Some of these riders are
charged through deductions from policyholders fund value, while others are not charged i.e. additional premium
Claims expenses are recognised after the date the insured event is intimated and a reliable estimate of the claim is charged there against. The risk underwritten is mainly death and disability. This business is written through
amount can be made. bancassurance channel and Company’s own agency distribution channel.

Liability for outstanding claims includes amounts in relation to unpaid reported claims and is stated at estimated Revenue recognition
claims settlement cost. Full provision is made for the estimated cost of claims incurred and reported till the
date of reporting. First year individual life premiums are recognised once the related policies have been issued and the premium
is received. Renewal premiums are recognised upon receipt of premium. Single premiums are recognised once
Liability for claims “Incurred But Not Reported” (IBNR) is included in the policyholders’ liabilities in accordance with the related policies are issued against the receipts of premium. Premium of riders like ‘Waiver of Premium’ will be
the estimates recommended by the appointed actuary. recognised upon actuarial assumptions where actuary deems that all premiums due have been received.

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Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

Recognition of policyholders’ liabilities Claim expenses

Policyholders’ liabilities included in the statutory fund are determined based on the appointed actuary’s valuation Claim expenses are recognised on the earlier of the policy expiry or the date when the intimation of the event
conducted as at the reporting date, in accordance with Section 50 of the Insurance Ordinance, 2000. giving rise to the claim is received. Claim of ‘Waiver of Contribution’ is created when intimated with the amount to
be applied by the Company on behalf of policyholder.
Claim expenses
Surrender of Unit Linked Takaful Business policies is made after these have been approved in accordance with
Claim expenses are recognised on the earlier of the policy expiry or the date when the intimation of the event the Company’s Policy.
giving rise to the claim is received. Claim of ‘Waiver of Premium’ is created when intimated with the amount to be
applied by the Company on behalf of policyholder. Liability for outstanding claims includes amounts in relation to unpaid reported claims and is stated at estimated
claims settlement cost. Full provision is made for the estimated cost of claims incurred and reported till the date of
Surrender of Unit Linked Business policies is made after these have been approved in accordance with the reporting.
Company’s policy.
Maturity claim expenses in Individual Family Takaful Unit Linked Business are recognised when the policy
Liability for outstanding claims includes amounts in relation to unpaid reported claims and is stated at estimated completes the benefit term.
claims settlement cost. Full provision is made for the estimated cost of claims incurred and reported till the date of
reporting. Liability for claims “Incurred But Not Reported” (IBNR) is included in the policyholders’ liabilities in accordance with
the estimates recommended by the appointed actuary.
Maturity claim expenses in Unit Investment Linked business are recognised when the policy completes the benefit
term. f) Group Family Takaful Business

Liability for claims “Incurred But Not Reported” (IBNR) is included in the policyholders’ liabilities in accordance with Group Life contracts are mainly issued to employers to insure their commitments to their employees as required
the estimates recommended by the appointed actuary. under the The West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968.

e) Individual Family Takaful Unit Linked Business The group life business segment provides coverage to members / employees of business enterprises and
corporate entities, against death and disability under group life assurance schemes issued by the Company. The
The Company offers Family Takaful contracts. Family Takaful contract is an arrangement which rests on key group credit life business segment provides coverage to a group of members or subscribers registered under a
Shariah principles of mutual cooperation, solidarity and well being of a community, and is based on the principles common platform against death and disability. The business is written mainly through direct sales force.
of Wakalah Waqf Model. Under a Takaful arrangement, individuals come together and contribute towards
the common objective of protecting each other against financial losses by sharing the risk on the basis of mutual Revenue recognition
assistance.
Contribution are recognised as and when due. In respect of certain group policies the Company continues
The obligation of Waqf for Waqf participants’ liabilities is limited to the amount available in the Waqf fund. In case to provide insurance cover even if the contribution is received after the grace period. Provision for unearned
there is a deficit in the Waqf Fund, the Window Takaful Operator shall grant an interest free loan (Qard-e-Hasna) contribution is included in the policyholders’ liabilities.
to make good the deficit. The loan shall be repayable from the future surplus generated in the Waqf Fund, without
any excess of the actual amount given to it. Repayment of Qard-e-Hasna shall receive priority over surplus Recognition of policyholders’ liabilities
distribution to participants from the Waqf Fund.
Policyholders’ liabilities included in the statutory fund are determined based on the appointed actuary’s valuation
The Company offers Unit Linked Takaful Plans which provide Shariah compliant financial protection and investment conducted as at the reporting date, in accordance with Section 50 of the Insurance Ordinance, 2000.
vehicle to individual participants. These plans carry cash value, and offer investment choices to the participants to
direct their investment related contributions based on their risk / return objectives. The investment risk is borne by Claim expenses
the participants.
Claim expenses are recognised on the date the insured event is intimated.
Revenue recognition
Liability for outstanding claims includes amounts in relation to unpaid reported claims and is stated at estimated
First year individual life contribution are recognised once the related policies have been issued and the contribution claims settlement cost. Full provision is made for the estimated cost of claims incurred and reported till the date of
is received. Renewal contribution are recognised upon receipt of contribution. Single contribution are recognised reporting.
once the related policies are issued against the receipts of contribution. Contribution of riders like ‘Waiver of
Contribution’ will be recognised upon actuarial assumptions where actuary deems that all contribution due have Liability for claims “Incurred But Not Reported” (IBNR) is included in the policyholders’ liabilities in accordance with
been received. the estimates recommended by the appointed actuary.

Recognition of policyholders’ liabilities Experience refund of contribution

Policyholders’ liabilities included in the statutory fund are determined based on the appointed actuary’s valuation Experience refund of contribution payable to policyholders’ is included in policyholders’ liability in accordance with
conducted as at the reporting date, in accordance with Section 50 of the Insurance Ordinance, 2000. the policy of the Company and the advice of the appointed actuary.

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Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

3.2 Reinsurance / retakaful contracts held 3.3 Statutory funds

Individual policies (including joint life policies underwritten as such) are reinsured under an individual life reinsurance The Company maintains statutory funds in respect of each class of life assurance business in which it operates.
/ retakaful agreement whereas group life and group credit life policies are reinsured under group life and group credit Assets, liabilities, revenues and expenses of the Company are referable to the respective statutory funds. However,
life reinsurance agreements respectively. where these are not referable to statutory funds, these are allocated to shareholders’ fund on the basis of actuarial
advice. Apportionment of assets, liabilities, revenues and expenses, whenever required between funds are made on
3.2.1 Conventional the basis certified by the appointed actuary of the Company. Policyholders’ liabilities have been included in statutory
funds on the basis of the actuarial valuation carried out by the appointed actuary of the Company on the reporting date
Reinsurance premium as required under Section 50 of the Insurance Ordinance, 2000.

Reinsurance premium ceded is recognised at the same time when the related premium revenue is recognised. It is 3.4 Policyholders’ liabilities
measured in line with the terms and conditions of the reinsurance treaties.
a) Conventional Business
Reinsurance recoveries
i) Individual life
Reinsurance recoveries from reinsurers are recognised at the same time when the claim is intimated and giving rise
to the right of recovery is recognised in the books of accounts of the Company. - Policyholders’ liabilities constitute the reserves for basic plans and riders attached to the basic plans and reserves
for IBNR Claims.
Experience refund
Policy reserves pertaining to the basic plans are based on Net Premium method of valuation as prescribed in
Experience refund receivable from reinsurers is included in the reinsurance recoveries of claims. Annexure V of Insurance Rules 2017 requires the use of the SLIC (2001-05) Individual Life Ultimate mortality
table and a valuation interest rate of 3.75% p.a. to establish the valuation Net level Premium. The interest rate is
Amount due from / to reinsurer considerably lower than the actual investment return the Company is managing on its conventional portfolio. The
difference between the above and actual investment return is intended to be available to the Company for meeting
All receivables (reinsurer’s share in claims, commission from reinsurer and experience refund) and payables administrative expense and for providing margins against adverse deviations. For yearly renewable contracts
(reinsurance premium) under reinsurance agreements are recognised on net basis in the Company’s financial and contracts where premiums are not age related, the reserves are based on net unearned premiums. Policy
statements, only under the circumstances that there is a clear legal right of off-set of the amounts. reserves for both waiver of premium and accidental death riders are based on net unearned premiums.

Amounts due from / to reinsurers are carried at cost which is the fair value of the consideration to be received / paid in - Incurred But Not Reported (IBNR) claims
the future for services rendered / received, less provision for impairment, if any.
Reserves for IBNR claims have been estimated using claims run-off triangle.
3.2.2 Takaful
ii) Group life and group credit life
Retakaful contribution
- Policy reserves for these plans are based on the unearned premium method net of allowances made for acquisition
Retakaful contribution ceded is recognised at the same time when the related contribution revenue is recognised. It is expenses, unexpired reinsurance premium and profit commission. Consideration is also given to the requirement
measured in line with the terms and conditions of the reinsurance treaties. for a Premium Deficiency Reserve. The reserves also comprise allowance for “Incurred But Not Reported”
(IBNR) claims. The provision for ‘Incurred But Not Reported’ (IBNR) claims as included in policyholders’ liability is
Retakaful recoveries estimated as 15% and 25% of earned premium for the year of group life and group credit life respectively.

Retakaful recoveries from retakaful operators are recognised at the same time when the claim is intimated and giving b) Accident and Health Business
rise to the right of recovery is recognised in the books of accounts of the Company.
Main Plan Policy reserves are based on net unearned premiums. Reserves for yearly renewable riders are based
Experience refund on net unearned premiums.

Experience refund receivable from retakaful operators is included in the retakaful recoveries of claims. c) Non-unitised Investment Linked Business

Amount due from / to retakaful operator Policyholders’ liabilities constitute the account value of investment linked contracts as well as non-investment or
risk reserves of these contracts. Risk reserves constitute liabilities held to account for risks such as death and risk
All receivables (retakaful operator’s share in claims, commission from retakaful operator and experience refund) and only riders (accidental death and disability, monthly income benefit, waiver of premium, etc). Reserves for risk only
payables (retakaful contribution) under retakaful agreements are recognised on net basis in the Company’s financial contracts where premiums are level over the term of the contract are based on the Net Premium Method whereas
statements, only under the circumstances that there is a clear legal right of off-set of the amounts. reserves for age related risk contracts are based on net unearned premiums.

Amounts due from / to retakaful operator are carried at cost which is the fair value of the consideration to be received - Incurred But Not Reported (IBNR) claims
/ paid in the future for services rendered / received, less provision for impairment, if any.
Reserves for IBNR claims have been estimated using claims run-off triangle.

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Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

d) Unit Linked Business 3.7 Receivables and payables relating to insurance contracts

Policyholders’ liabilities constitute the fund value of unit linked contracts as well as non-investment or risk reserves These include amounts due to and due from agents and policyholders’ which are recognised when due.
of these contracts. Risk reserves constitute liabilities held to account for risks such as death and risk only riders
(accidental death and disability, monthly income benefit, waiver of premium, etc). Reserves for risk only contracts 3.8 Provisions
where premiums are level over the term of the contract are based on the Net Premium Method whereas reserves
for age related risk contracts are based on net unearned premiums. Provisions are recognised when the Company has a present legal or constructive obligation as a result of a past event
and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and
- Incurred But Not Reported (IBNR) claims a reliable estimate of the obligation can be made. Provisions are regularly reviewed and adjusted to reflect the current
best estimate.
Reserves for IBNR claims have been estimated using claims run-off triangle.


e) Individual Family Takaful Unit Linked Business 3.9 Other creditors and accruals

Policyholders’ liabilities constitute the fund value of unit linked contracts as well as non-investment or risk Liabilities for creditors and other amounts payable are recognised initially at fair value plus directly attributable
reserves of these contracts. Risk reserves constitute liabilities held to account for risks such as death and risk transactions costs, if any, and subsequently measured at amortised cost.
only riders (accidental death and disability, monthly income benefit, waiver of contribution, etc). Reserves for risk
only contracts where contribution are level over the term of the contract are based on the Net Premium Method 3.10 Employees accumulated compensated absences
whereas reserves for age related risk contracts are based on net unearned contribution.
The Company accounts for the liability in respect of employees accumulated compensated absences in the period in
- Incurred But Not Reported (IBNR) claims which they are earned as follows:

Reserves for IBNR claims have been estimated using claims run-off triangle. A confirmed employee having 6 months service completed is entitled for 30 days annual leaves in a calendar year.
Employee completing only part of calendar year’s service during the year of his/her joining or leaving will be entitled
f) Group Family Takaful Business to proportionate number of Annual Leave days for the period served by him/her. Annual Leaves can be availed after
confirmation of service and completion of 6 months employment.The annual leaves entitlement i.e. 30 days leave
Policy reserves for these plans are based on the unearned contribution method net of allowances made for
balance divided into leaves that are encashable during the employement and the leaves that can be encashed at the
acquisition expenses, unexpired retakaful contribution and profit commission. Consideration is also given to the
termination of employement contract.
requirement for a Premium Deficiency Reserve. The reserves also comprise allowance for “Incurred But Not
Reported” (IBNR) claims. The provision for ‘Incurred But Not Reported’ (IBNR) claims as included in policyholders’
3.11 Operating assets
liability is estimated based on the gross and net loss ratio of 75% and 65% respectively.

3.5 Retirement benefit obligations 3.11.1 Property and equipment

Property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if
Defined benefit plan
any, except for capital work in progress which is stated at cost less impairment losses, if any. All assets having cost

The Company operates an approved funded gratuity scheme for all permanent, confirmed and full time employees exceeding minimum threshold as determined by the management are capitalised. All other assets are charged in the
who have completed minimum qualifying eligible service period of six months. Contribution to the fund is made and year of acquisition. Cost includes expenditure that is directly attributable to the acquisition of the items.
expense is recognised on the basis of actuarial valuation carried out as at each year end using the Projected Unit
Credit Method. In accordance with the requirements of Islamic Financial Accounting Standard (IFAS) No. 2 for the accounting and
financial reporting of “ljarah”, ljarah arrangements are accounted for as ‘Assets held under ljarah’ whereby the Bank
The relevant details relating to the fund are disclosed in note 20. Gratuity is based on employees’ last drawn gross transfers its usufruct to the Company for an agreed period for an agreed consideration. Assets held by the Company
salary. Provisions are made to cover the obligations under the scheme on the basis of actuarial assumptions. under ijarah are not recognised in the statement of financial position of the Company. Rental payments made under
these ijarah are recognised as an expense in the Company’s statement of profit or loss on a straight line basis over the
The Company’s obligation under the gratuity schemes are determined through actuarial valuations. Service costs are ijarah term.
recognised in the statement of profit or loss in the year in which they occur. Net interest on net defined benefit liability
is also recognised in statement of profit or loss. Net of tax remeasurement comprising actuarial gain / loss, the return Subsequent costs
on plan assets excluding interest are recognised in other comprehensive income.
Subsequent costs are included in the assets’ carrying amount or recognised as a separate asset, as appropriate,
3.6 Lease liabilities only when it is probable that future economic benefits associated with the item will flow towards the Company and the
cost of the item can be measured reliably. All other expenses are charged to the statement of profit or loss / revenue
The Company recognises all rental agreements as ‘finance lease liabilities’ created against right of use of an asset account during the financial year in which they are incurred.
where the non cancellable period is more than one year or where the intention of the Company is to continue with the
agreement for forseeable future. At the commencement date of the lease, the Company recognises lease liabilities Depreciation
measured at the present value of the consideration (lease payments) to be made over the lease term. The lease
payments are discounted using the effective rate implicit in the lease, unless it is not readily determinable, in which Depreciation is charged using the straight line method at the rates specified in note 5 to these financial statements.
case the lessee may use the incremental rate of financing. After the commencement date, the carrying amount of Depreciation on additions is charged from the month of addition when the asset is available for use while no depreciation
lease liabilities is increased to reflect the accretion of finance cost and reduced for the lease payments made. is charged in the month of disposal. When parts of an item of asset have different useful lives, they are accounted for
as separate items in the operating assets.

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Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

The assets’ useful lives and depreciation method are reviewed at each reporting date and adjusted, if appropriate. 3.13 Investment property

Gains and losses on disposal Investment property is the property which is held either to earn rental income or for capital appreciation or for both, but
not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative
An item of property and equipment is derecognised upon disposal or where no future economic benefits are expected purposes. Investment property acquired for investment-linked (unit linked business) statutory fund and it was initially
to be realised from its use or disposal. Gains or losses of an item of property and equipment is recognised in the measured at cost and subsequently at fair value with any change therein recognised in statement of profit or loss.
statement of profit or loss.
Cost includes expenditure that is directly attributable to the acquisition of the investment property.
3.11.2 Intangible assets
The fair value of investment property is determined by external, independent property valuer having appropriate
Intangible assets having a finite useful life are stated at cost less accumulated amortisation and accumulated impairment recognised professional qualifications.
losses, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
3.14 Financial instruments
Software development cost are capitalised only to the extent where future economic benefits that are to be derived

from such capitalisation are expected to flow to the Company.
3.14.1 Financial assets
Subsequent costs
The Company has classified its financial assets on initial recognition into the following categories: at fair value through
Subsequent costs are included in the assets’ carrying amount or recognised as a separate asset, as appropriate, only profit or loss (held for trading), held to maturity, loans and receivables and available for sale. The classification depends
when it is probable that future economic benefits associated with them will flow to the Company and the cost of the on the purpose for which the financial assets were acquired.
item can be measured reliably. All other expenses are charged to the statement of profit or loss / revenue account
during the financial period in which these are incurred. The Company has classified its income earned on financial assets categorised at fair value through profit or loss as
‘income from trading investments’ while income earned on financial assets categorised as held to maturity, loans and
Amortisation receivables and available for sale as ‘income from non-trading investments’.

Intangible assets are amortised using the straight line method over their estimated useful lives (refer note 6). The a) Financial assets at fair value through profit or loss (held for trading)
useful lives and amortisation method are reviewed and adjusted, if appropriate, at each reporting date.
Financial assets designated at fair value through profit or loss upon initial recognition include those group of
Intangible assets having an indefinite useful life are stated at acquisition cost less impairment losses, if any. financial assets which are managed and their performance evaluated on a fair value basis.
3.11.3 Capital work in progress
b) Held to maturity

Capital work in progress is stated at cost less impairment losses. Cost consists of expenditure incurred and advances
made in respect of assets in the course of their construction and installation. Transfers are made to relevant asset Financial assets with fixed or determinable payments and fixed maturity, where management has both the intent
category as and when assets are available for intended use. and the ability to hold till maturity.

3.11.4 Right of use assets c) Loans and receivables

The Company recognises all rental agreements as ‘right of use asset’ where the non cancellable period is more These are non derivative financial assets with fixed or determinable payments that are not quoted in an active
than one year or where the intention of the Company is to continue with the agreement for forseeable future. At the market.
commencement date of the lease, the right-of-use asset is initially measured at the present value of lease liability.
Subsequently, right-of-use asset are measured at cost less accumulated depreciation and any impairment losses, d) Available for sale
and adjusted for any remeasurement of lease liabilities and prepayments. Right of use assets are depreciated on a
straight-line basis over the shorter of its estimated useful life or the lease term. These are non derivative financial assets that are either designated as in this category or not classified in any of
the other categories.
3.12 Impairment of non financial assets (excluding deferred tax)
Initial recognition and measurement
Non financial assets are subject to impairment review if there are events or changes in circumstances that indicate that
the carrying amount may not be recoverable. If any such indication exists, the Company estimates the recoverable All financial assets are recognised when the Company becomes a party to the contractual provision of the instrument.
amount of the assets and the impairment loss, if any. The recoverable amount of an asset is the higher of its fair value Investments other than those categorised into ‘financial assets at fair value through profit or loss’ category are initially
less costs to sell and its value in use. Value in use is the present value of future cash flows from the asset discounted recognised at fair value plus transaction costs which are directly attributable to the acquisition of the securities.
at a rate that reflects market interest rates adjusted for risk specific to the assets. If the recoverable amount of an Financial assets classified ‘at fair value through profit or loss’ are initially recognised at fair value and transaction costs
intangible asset or tangible asset is less than its carrying value, an impairment loss is recognised immediately in the are expensed in the statement of profit or loss / revenue account. All regular way purchases and sales of investments
statement of profit or loss / revenue account and the carrying value of the asset is reduced by the amount of the loss. A that require delivery within the time frame established by regulations or market convention are recognised at the trade
reversal of an impairment loss on intangible / tangible assets is recognised as it arises provided the increased carrying date. Trade date is the date when the Company commits to purchase or sell the investment.
value does not exceed that which it would have been had no impairment loss been recognised.

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Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

Subsequent measurement 3.15 Loan against life insurance policies

Financial assets classified as ‘at fair value through profit or loss’ are subsequently measured at their fair values and The Company has a policy to provide loans to the policyholders against cash values of their life insurance policies
gains and losses arising from changes in fair value are included in the statement of profit or loss / revenue account. depending upon their types i.e. unit linked and non unit linked at the pervailing market interest rate (KIBOR) plus
Available for sale investments are subsequently measured at their fair values and gains and losses arising from spread. The loan amount is secured against the cash value of the policyholders and repayable within 3 months.
changes in fair values are included in other comprehensive income. Any change in the provision for impairment
in value of investment is recognised in the statement of profit or loss / revenue account. Amortisation of premium / 3.16 Cash and cash equivalents
discounts on acquisition of investments is carried out using effective yield method and charged to the statement of profit
or loss / revenue account, as appropriate. Investments classified as held to maturity and loans and receivables are For the purpose of cash flow statement, cash and cash equivalents include balances with banks, term deposits with
subsequently measured at amortised cost less any impairment losses, taking into account any discount or premium original maturity of three months or less and cash and stamps in hand.
on acquisition by using the effective interest rate method.
3.17 Other revenue recognition
Fair / market value measurements
- Return on fixed income and government securities are recognised on time proportion basis using the effective
For investments in quoted equity securities, the market value is determined by using Pakistan Stock Exchange interest rate method.
quotations at the reporting date. For investments in Government securities, the market value is determined using
PKRV/PKISRV/PKFRV rates. The fair market value of term finance certificates / corporate sukuks is as per the rates - Return on deposits and loans to policyholders are recognised on a time proportion basis.
issued by the Mutual Funds Association of Pakistan (MUFAP) and the fair value of open ended mutual funds is
declared by the relevant fund. - Dividend income from investments is recognised when the Company’s right to receive the dividend is established.

Impairment against financial assets - Gain or loss on sale of investments is included in the statement of profit or loss in the year in which disposal has
been made.
The Company assesses at each reporting date whether there is objective evidence that a financial asset or a group
of financial assets is impaired. If any such evidence exists for ‘available for sale’ financial assets, the cumulative loss - Gains and losses on disposal of fixed assets are taken to the statement of profit or loss / revenue account in the
- measured as the difference between the carrying value and the current fair value, less any impairment loss on that year in which they arise.
financial asset previously recognised in the statement of profit or loss / revenue account, as the case may be, is taken
to the statement of profit or loss / revenue account. For financial assets classified as ‘loans and receivables’ and ‘held - All income on investments other than unrealised gain on available for sale investments are included in statement
to maturity’, a provision for impairment is established when there is objective evidence that the Company will not be of profit or loss / revenue account. Unrealised income from available for sale investments are included in other
able to collect all amounts due according to the original terms. The amount of the provision is the difference between comprehensive income.
the asset’s carrying amount and the present value of estimated future cash inflows, discounted at the original effective
interest rate. 3.18 Acquisition costs

Derecognition These are costs incurred in acquiring insurance policies / takaful contracts, maintaining such policies / takaful contracts,
and include without limitation all forms of remuneration paid to insurance agents / takaful agents.
Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have
been transferred and the Company has transferred substantially all risks and rewards of ownership. Commission and other expenses are recognised as expense in the earlier of the financial year in which they are paid
and the financial year in which they become payable, except that commission and other expenses which are directly
Offsetting of financial assets and liabilities referable to the acquisition or renewal of specific contracts are recognised not later than the period in which the
premium to which they refer to is recognised as revenue.
Financial assets and financial liabilities are offset and the net amount is reported in the financial statement only when
there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis 3.19 Takaful operator fee
or realise the assets and settle the liabilities simultaneously.
The shareholders of the Company manage the Window Takaful Operations for the participants. Accordingly, the
3.14.2 Financial liabilities Company is entitled to Takaful Operator’s Fee for the management of Window Takaful Operations under the Waqf
Fund, to meet its general and administrative expenses. The Takaful Operator’s Fee, termed Wakalah fee, is recognised
All financial liabilities are recognised at the time the Company becomes a party to the contractual provisions of the upfront.
instrument. Financial liabilities are recognised initially at fair value less any directly attributable transaction cost.
3.20 Taxation
Subsequent to initial recognition, these are measured at fair / market value or amortised cost using the effective
interest rate method, as the case may be. Income tax expense for the year comprises current and deferred taxation. Income tax expense is recognised in the
statement of profit or loss, except to the extent that it relates to the items recognised directly in equity and other
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expired. comprehensive income, in which case it is recognised in equity and other comprehensive income.

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Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

Current 3.25 Contingent Liability

Provision for current taxation is based on taxable income for the year determined in accordance with the prevailing laws Contingent Liability is disclosed when the Company has a possible obligation as a result of past events, whose
for taxation on income earned or minimum turnover tax payable under the Income Tax Ordinance, 2001, whichever is existance will be confirmed only by the occurance or non - occurance of one or more uncertain future events, not
higher. The charge for current tax is calculated using tax rates enacted or substantively enacted at the reporting date. wholly within the control of the Company; or the Company has present legal or constructive obligation that arises from
The charge for current tax also includes adjustments, where considered necessary, relating to prior years which arise past events, but it is not possible that an outflow of resources embodying economic benefits will be required to settle
from assessments framed / finalised during the year. the obligation or the amont of the obligation cannot be measured with sufficient reliability.

Deferred 4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

Deferred taxation is recognised using liability method on all major temporary differences arising between the carrying
The preparation of financial statements in conformity with accounting and reporting standards requires the use of
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred
certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying
tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible
the Company’s accounting polices. Estimates and judgments are continually evaluated and are based on historic
temporary differences to the extent that it is probable that the temporary differences will reverse in the future and
experience and other factors, including expectations of future events that are believed to be reasonable under the
taxable income will be available against which the temporary differences can be utilised. Deferred tax asset is reduced
circumstances. Revisions to accounting estimates are recognised in the period in which the estimate is revised and
to the extent that it is no longer probable that the related tax benefits will be realised. Deferred tax assets and liabilities
any future periods affected.
are measured using the tax rates that are expected to apply to the period when the asset is realised or the liability is

settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
In the process of applying the Company’s accounting policies, management has made the following estimates and

3.21 Earning Per Share (EPS) judgments which are significant to the financial statements:
Note
The Company presents basic and diluted earnings per share (EPS) for the shareholders. Basic EPS is calculated
by dividing the profit after tax attributable to ordinary shareholders of the Company by the weighted average number - Policyholders’ liabilities and underlying actuarial assumptions 3.1, 3.4 & 19
of ordinary shares outstanding during the year. There are no dilution effect on the EPS and as such these are not
- Determining the residual value and useful lives of property and equipment,
presented. intangibles and right of use assets 3.11, 5, 6 & 7

3.22 Dividend and other appropriations - Retirement benefit obligations 3.5 & 20 & 15

Dividend and appropriations to reserves except appropriations required by law or determined by the appointed actuary - Investment property 3.13 & 8
or allowed by the Insurance Ordinance, 2000 are recognised in the year in which these are approved.
- Taxation and deferred taxation 3.20, 21 & 37
3.23 Foreign currency translation
- Lease Liabilities and related assets 3.6 & 22

Transactions in foreign currencies are translated into the reporting currency at the rates of exchange prevailing on the - Classification and impairment of investments 3.14, 9, 10, 11, 12 & 13
date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into reporting
currency equivalents using the rates of exchange prevailing at each reporting date. Non monetary assets and liabilities - Provisions 3.8
are translated using exchange rates that existed when the values were determined. Exchange differences on foreign
currency translations are taken to the statement of profit or loss / revenue account. - Contingencies and commitments 25

3.24 Segment reporting

(Rupees in ’000)
A segment is a distinguishable component of the Company that is engaged in providing products or services (business 5.
PROPERTY AND EQUIPMENT
segment) or in providing products or services within a particular economic environment (geographical segment), which
is subject to risks and rewards that are different from those of other segments. The Company’s primary format of Operating assets 5.1 217,585 212,363
reporting is based on business segments. Capital work in progress 5.2 2,571 3,169
220,156 215,532
Operating segments are reported in a manner consistent with that provided to the chief operating decision-maker.
The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the Chief Executive Officer.

The Company operates in Pakistan only. The Company has six primary business segments for reporting purposes
namely; Conventional Business, Accident and Health Business, Non Unitised Investment Linked Business, Unit
Linked Business, Individual Family Takaful Business and Group Family Takaful Business. The details of all operating
segments are described in note 3.1 to these financial statements. The Company accounts for segment reporting
using the classes or sub-classes of business (statutory funds) as specified under the Insurance Ordinance 2000 and
Insurance Rules, 2017 as the primary reporting format.

140 141
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

5.1 Operating assets Accumulat- Gain /

Particulars Cost ed depreci- Net book Sales
(loss) on Mode of disposal
Particulars of buyers along
Cost Depreciation ation value Value with relationship
disposal
Written
As at Transferred As at As at As at down 71 (71) - 7 7 As per Company policy Mr. Hafiz Muhammad Sajid-Employee
(Disposals / (Disposals /
January 01, Additions from December January 01, For the year December values as at
write-off) write-off) 45 (45) - 4 4 As per Company policy Mr. Haris Yousuf-Employee
2023 CWIP 31, 2023 2023 31, 2023 December
31, 2023
80 (80) - 8 8 As per Company policy Mr. Muhammad Kaleem-Employee
------------------------- (Rupees in ‘000) ------------------------- Rate % ------------------------- (Rupees in ‘000) -------------------------
47 (47) - 5 5 As per Company policy Mr. Syed Asad Murtaza-Employee
65 (65) - 7 7 As per Company policy Mr. Zeeshan Hussain-Employee
Leasehold improvements 64,752 6,989 6,021 (6,168) 71,594 14.3% 19,873 9,144 (2,926) 26,091 45,503 45 (45) - 5 5 As per Company policy Mr. Muhammad Imran Yousuf-Employee

45 (45) - 5 5 As per Company policy Mr. Muhammad Farooq Qadeer-Employee
Furniture and fixtures 70,128 2,731 986 (12,169) 61,676 14.3% 34,956 7,950 (8,126) 34,780 26,896
65 (65) - 7 7 As per Company policy Mr. Noor Saeed-Employee
Office equipment 50,516 4,289 - (783) 54,022 20% 33,760 5,766 (765) 38,761 15,261 57 (57) - 6 6 As per Company policy Mr. Javad Ul Hassan-Employee
69 (69) - 7 7 As per Company policy Mr. Danish Shafiq-Employee
Computer and related 69 (69) - 7 7 As per Company policy Mr. Syed Mohsin Rizvi-Employee
equipment 173,164 21,592 - (16,697) 178,059 33.3% 131,135 23,857 (15,774) 139,218 38,841
55 (55) - 5 5 As per Company policy Mr. Habib Ullah Basit-Employee

Motor vehicles 95,508 45,671 - (10,490) 130,689 20% 21,981 19,799 (2,175) 39,605 91,084 55 (55) - 5 5 As per Company policy Mr. Kamran Khan-Employee
55 (55) - 5 5 As per Company policy Mr. Waris Ali-Employee
454,068 81,272 7,007 (46,307) 496,040 241,705 66,516 (29,766) 278,455 217,585 69 (69) - 7 7 As per Company policy Mr. Shilpa Shamlal-Employee
73 (73) - 7 7 As per Company policy Mr. Muhammad Ibrahim Qazi-Employee
70 (70) - 7 7 As per Company policy Mr. Faisal Rasheed-Employee
Cost Depreciation
44 (44) - 4 4 As per Company policy Mr. Muhammad Afnan Aftab-Employee
Written down
As at Transferred As at As at As at values as at 164 (164) - 16 16 As per Company policy Mr. Muhammad Furqan Uddin-Employee
(Disposals / (Disposals /
January 01, Additions from December January 01, For the year December December
2022 CWIP
write-off)
31, 2022 2022
write-off)
31, 2022 31, 2022
30 (30) - 3 3 As per Company policy Mr. Rahila Ashraf-Employee
466 (466) - 60 60 As per Company policy Mr. Danish Ali Khan Rajput-Employee
------------------------- (Rupees in ‘000) ------------------------- Rate % ------------------------- (Rupees in ‘000) ------------------------- 281 (179) 102 164 62 As per Company policy Mr. Ahson Nasim-Employee
281 (179) 102 94 (8) As per Company policy Mr. Dr. M. Saquib Saeed Khan-Employee
Leasehold improvements 52,019 4,947 14,727 (6,941) 64,752 14.3% 15,349 7,971 (3,447) 19,873 44,879
125 (108) 17 24 7 As per Company policy Mr. Rahim Ashiq Ali Vallyani-Employee
Furniture and fixtures 63,649 7,081 1,383 (1,985) 70,128 14.3% 27,947 8,825 (1,816) 34,956 35,172 125 (108) 17 21 4 As per Company policy Mr. Asif Iqbal-Employee
583 (380) 203 227 24 As per Company policy Mr. Muhammad Imran Hussain-Employee
Office equipment 46,433 4,891 900 (1,708) 50,516 20% 29,140 6,117 (1,497) 33,760 16,756 65 (65) - 7 7 As per Company policy Mr. Sada Abbas-Employee

Computer and related
equipment 153,806 37,449 - (18,091) 173,164 33.3% 131,086 17,743 (17,694) 131,135 42,029 Office Equipment 70 (70) - 7 7 Negotiation Dubai Cooling Center
71 (71) - 15 15 Negotiation Dubai Cooling Center
Motor vehicles 21,958 48,051 28,988 (3,489) 95,508 20% 12,538 12,315 (2,872) 21,981 73,527 101 (101) - 7 7 Negotiation Dubai Cooling Center
83 (83) - 8 8 Negotiation Dubai Cooling Center
337,865 102,419 45,998 (32,214) 454,068 216,060 52,971 (27,326) 241,705 212,363
146 (146) - 7 7 Negotiation Dubai Cooling Center
146 (146) - 7 7 Negotiation Dubai Cooling Center
5.1.1 Disposal of fixed assets 70 (70) - 10 10 Negotiation Dubai Cooling Center
- - - 95 95 Negotiation Dubai Cooling Center
Accumulat- Gain /
Particulars Cost ed depreci- Net book Sales
(loss) on Mode of disposal
Particulars of buyers along
ation value Value with relationship Leasehold Improvement 127 (67) 60 41 (19) Negotiation Various vendors
disposal
94 (55) 39 13 (26) Negotiation Hamza Traders
Detail of fixed assets sold
31,040 (20,004) 11,036 12,443 1,407

Motor vehicles 3,541 (354) 3,187 3,583 396 As per Company policy Mr. Ahson-Employee Details of fixed assets written off
2,958 (690) 2,268 2,772 504 As per Company policy Mr. Usman Javed-Employee
1,747 (495) 1,252 1,701 449 As per Company policy Mr. Raja Adnan-Employee Leasehold improvements 5,944 (2,802) 3,142 - (3,142) Write-off None
2,244 (636) 1,608 2,031 423 As per Company policy Mr. Noor Atif-Employee
Office equipment 97 (78) 19 - (19) Write-off None
Furniture and fixtures 2,952 (2,817) 135 63 (72) Negotiation Abdul Rehman
2,376 (1,695) 681 215 (466) Negotiation Various vendors Furniture and fixtures 3,936 (1,706) 2,230 - (2,230) Write-off None
179 (96) 83 41 (42) Negotiation Various vendors
910 (466) 444 240 (204) Negotiation Wasim Abbas Computer equipments 5,290 (5,176) 114 - (114) Write-off None
1,816 (1,347) 469 286 (183) Negotiation N.A Enterprises 15,267 (9,762) 5,505 - (5,505)
Total as at December 31, 2023 46,307 (29,766) 16,541 12,443 (4,098)
Computer and related 6,721 (6,721) - 400 400 Negotiation Abdul Hannan and Brothers
Total as at December 31, 2022 32,214 (27,336) 4,877 1,665 (3,212)
equipment 1,340 (971) 369 94 (275) Negotiation Sultan Traders
76 (76) - 76 76 Negotiation Tayyab Traders
5.1.2 Fully depreciated assets having cost of Rs. 145.97 million (2022: Rs 146.85 million) are still in use.
73 (73) - 7 7 As per Company policy Mr. Zaheer Abbas -Employee



142 143
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

(Rupees in ’000) (Rupees in ’000)

5.2 Capital work in progress 7. RIGHT OF USE ASSETS

Opening balance 3,169 24,943 Head office and branches 7.1 72,502 124,420
Additions 8,007 24,224
Expensed out (1,598) - 7.1 Head office, bancassurance and agency branches - Right of use assets
Transfer to operating assets (7,007) (45,998)
As at January 01, 2023
Closing balance 2,571 3,169 Cost 318,777 327,622
Accumulated depreciation (194,357) (139,994)
5.3 Depreciation Net book value 124,420 187,628

Acquisition expense 33 (38,606) (34,846) Opening net book value 124,420 187,628
Marketing and administration expense 34 (27,910) (18,125) Additions 8,936 -
(66,516) (52,971)
Derecognition
6. INTANGIBLE ASSETS - Cost (5,215) (8,845)
- Accumulated depreciation 2,359 3,714
Computer software 6.1 22,152 22,825 Derecognition at net book value (2,856) (5,131)
Capital work in progress 6.2 3,754 3,754
25,906 26,579 Depreciation charged (57,998) (58,077)
Closing net book value 72,502 124,420

Cost Amortization Cost 322,498 318,777

Written Accumulated depreciation (249,996) (194,357)
As at As at As at As at down
January 01, Additions
Transferred (Disposals ) December Rate % January 01,
For the year (Disposals ) December values as at Net book value 72,502 124,420
from CWIP
2023 31, 2023 2023 31, 2023 December
31, 2023

------------------------- (Rupees in ‘000) ------------------------- % ------------------------- (Rupees in ‘000) -------------------------
7.2 Depreciation

Computer software 181,379 13,138 - - 194,517 20% 158,554 13,812 - 172,366 22,151 Acquisition expense 33 (22,768) (23,675)
Marketing and Administration expense 34 (35,230) (34,402)
(57,998) (58,077)
Cost Amortization
Written
As at As at As at As at down 7.3 Lease assets comprise of head office, bancassurance and agency branches with a lease term of 5 to 7 years.
Transferred
January 01, December January 01, For the year (Disposals ) December values as at
2022
Additions from CWIP
(Disposals )
31, 2022
Rate %
2022 31, 2022 December
31, 2022
------------------------- (Rupees in ‘000) ------------------------- % ------------------------- (Rupees in ‘000) -------------------------
8. INVESTMENT PROPERTY (Rupees in ’000)

Computer software 168,490 3,531 9,358 - 181,379 20% 145,404 13,150 - 158,554 22,825
Opening net book value 943,669 939,394
Unrealised fair value gain 121,725 4,275
6.1 Fully amortised intangible assets having cost of Rs. 161.02 million (2022: Rs Rs. 124.97 million) are still in use. Closing net book value 8.1 1,065,394 943,669

8.1
This represents piece and parcel of plot no. 1-A, Main Gulberg, Jail Road, Lahore, measuring 8 Kanal 8 Marla 203 Sq.
6.2 Capital work in progress ft. of a land bought by the Company for the Unit Linked Investment Business.
(Rupees in ’000)
Opening balance 3,754 12,571 Market value of this investment property is estimated around Rs. 1,065.39 million with the forced sale value (FSV) of
Reversals - 541 Rs. 739.20 million as at December 27, 2023. Total unrealised gain till December 31, 2023 is Rs. 293.467 million (De-
Transfer to operating assets - (9,358) cember 31, 2022: Rs. 171.742 million). The fair value of investment property is determined by K.G Traders (Private)
Closing balance 3,754 3,754 Limited, an external, independent property valuer having appropriate recognised professional qualifications.

Valuation technique

The valuer has arranged inquiries and verifications from various estate agents, brokers and dealers, the location and
condition of the property, size, utilisation, and current trends in prices of real estate including assumptions that ready
buyers are available in the current scenario and analysed through detailed market surveys, the properties that have
recently been sold or purchased or offered / quoted for sale into given vicinity to determine the best estimates of the
fair value.

144 145
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

(Rupees in ’000)
9.
INVESTMENTS IN EQUITY SECURITIES 9.2.1 Details of equity securities - fair value through profit or loss
2023 2022

Market value Market value
Available for sale 9.1 - 12,390 No. of shares in Rupees No. of shares in Rupees
Fair value through profit or loss (held for trading) 9.2 8,556,762 8,279,779 (000) (000)
8,556,762 8,292,169 Related party

9.1 Available for sale 2023 2022 D.G. Khan Cement Company Limited 1,705,731 132,024 1,805,732 93,248
Carrying Impairment / Impairment /
MCB Bank Limited 10,637,598 1,835,518 6,306,006 732,506
Market value Carrying value Market value Nishat Chunian Limited 5,730,098 148,696 3,907,365 81,429
value provision provision
Nishat Chunian Power Limited 2,000,000 55,940 - -
-------------------------------------------------------------------- (Rupees in ‘000) --------------------------------------------------------------------
Nishat Mills Limited 400,000 30,688 650,301 35,755
Related parties - - - 795 - 728 2,202,866 942,938
Others - - - 12,687 - 11,662
- - - 13,482 - 12,390 Others

9.1.1 Details of equity securities - available for sale 2023 2022 Abbott Laboratories (Pakistan) Limited 380,350 175,040 54,900 25,435
No. of
Market value Market value AGP Limited 2,911,008 204,672 614,034 39,906
in Rupees
shares
(000)
No. of shares in Rupees Agriautos Industries Limited 366,630 36,575 135,630 11,638
(000)
Air Link Communication Limited - - 2,561,196 75,760
Related party Aisha Steel Mills Limited - - 5,235,825 42,986
Amreli Steel Limited - - 4,883,504 87,659
Nishat Power Limited - - 40,000 728 Archroma Pakistan Limited - - 2,863 1,248
Arif Habib Corporation Limited - - 36,300 1,250
Others Askari Bank Limited - - 1,964 39
Atlas Battery Limited - - 1,587 259
Aisha Steel Mills Limited - - 660 5 Atlas Honda Limited 152,300 53,430 163,300 48,990
Aisha Steel Mills Limited (preference shares) - - 3,300 48 At-Tahur Limited - - 170,153 2,908
Attock Cement Pakistan Limited - - 24,000 1,357 Attock Cement Pakistan Limited 365,068 35,127 550,500 31,131
Fatima Fertilizer Company Limited - - 9,000 302 Attock Petroleum Limited 37,327 14,129 - -
Habib Bank Limited - - 58,807 3,746 Avanceon Limited - - 235,915 15,577
Kot Addu Power Company Limited - - 12,000 320 Azgard Nine Limited - - 50,747 368
K-Electric Limited - - 130,000 351 Bank Al Falah Limited - - 7,814,396 235,526
National Bank of Pakistan - - 79,062 1,865 Bank Al Habib Limited - - 36,563 2,021
Pakistan Oilfields Limited - - 600 237 BankIslami Pakistan Limited - - 4,704,431 62,851
Pakistan Petroleum Limited - - 49 3 Citi Pharma Limited - - 3,040,403 73,425
Saif Power Limited - - 25,000 464 Bata Pakistan Limited 162,175 280,924 166,555 360,307
United Bank Limited - - 29,400 2,964 Bestway Cement Limited - - 338,897 43,382
- 11,662 Century Paper & Board Mills Limited 17,000 554 - -
Cherat Cement Company Limited 12,149 1,980 1,754,297 178,763
9.2 Fair value through profit or loss (held for trading) Citi Pharma limited 136,540 3,241 - -
Cnergyico PK Limited - - 5,593,773 20,641
2023 2022 Dynea Pakistan Limited 321,300 59,505 403,200 62,492
Carrying Impairment / Impairment /
Engro Corporation Limited 861,531 254,074 1,834,566 480,675
value provision
Market value Carrying value
provision
Market value Engro Fertilizer Limited - - 582,512 44,789
Fauji Cement Company Limited 39,022,777 738,311 29,344,402 352,720
-------------------------------------------------------------------- (Rupees in ‘000) --------------------------------------------------------------------
Fauji Fertilizer Company Limited 571,188 64,653 3,189,976 48,902
Related parties 1,535,048 - 2,202,866 1,297,356 - 942,938 Faysal Bank Limited 5,946,728 193,744 7,608,655 196,532
Others 5,377,513 - 6,353,896 8,804,837 - 7,336,841 Ferozsons Laboratories Limited 32,200 7,105 221,331 30,444
6,912,561 - 8,556,762 10,102,193 - 8,279,779 Ghandhara Tyre & Rubber Company Limited - - 2,028,395 54,767
Glaxosmithkline Pakistan Limited - - 273,900 24,040

146 147
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

2023 2022 2023 2022

Market value Market value Market value Market value
No. of shares in Rupees No. of shares in Rupees No. of shares in Rupees No. of shares in Rupees
(000) (000) (000) (000)

Gharibwal Cement Limited - - 396,835 6,345 Rafhan Maize Products Company Limited 3,920 39,192 - -
Gul Ahmed Textile Mills Limited 5,315,256 114,810 3,704,131 91,270 Security Papers Limited - - 476,499 44,576
Habib Bank Limited - - 2,377,988 151,549 Shabbir Tiles & Ceramics Limited 2,496,587 35,576 1,360,092 11,697
Habib Metropolitan Bank Limited 2,339 129 1,698,949 57,679 Shell Pakistan Limited - - 514,300 55,256
Haleon Pakistan Limited 540,262 91,310 173,262 28,397 Shifa International Hospitals Limited 638,510 89,564 984,810 105,473
Highnoon Laboratories Limited 247,159 124,707 25 14 Sui Northern Gas Pipelines Limited - - 2,600 98
Hi-Tech Lubricants Limited 9,000 236 194,577 5,034 Synthetic Products Enterprises Limited - - 599,215 5,932
Honda Atlas Cars (Pakistan) Limited 1,035 221 - - Systems Limited 446,110 188,953 88,900 43,021
Hub Power Company Limited 455,000 53,276 422,425 26,647 Thal Limited - - 376,644 72,790
Hum Network Limited 18,586,000 127,313 The Organic Meat Company Limited - - 49,159 1,016
IGI Holdings Limited 440,900 48,653 480,400 45,638 The Searle Company Limited - - 17,700 1,042
Indus Motors Company Limited 127,175 152,599 - - United Bank Limited - - 3,484,330 351,046
Interloop Limited 2,534,190 182,462 2,187,916 123,945 Waves Home Appliances Limited - - 392,700 2,608
International Industries Limited - - 935,485 70,779 Waves Singer Pakistan Limited - - 1,963,500 16,946
International Steels Limited - - 432,222 19,601 6,353,896 7,336,841
Jubilee Life Insurance Company Limited 2,459 335 110,465 15,355
Jahangir Siddiqui & Company Limited - - 2,545,500 26,040
JS Bank Limited - - 1,906,500 8,941 10. INVESTMENTS IN GOVERNMENT SECURITIES
(Rupees in ’000)
Kohat Cement Company Limited - - 44,000 6,499
Kohinoor Textile Mills Limited - - 448,664 21,199 Fair value through profit or loss (held for trading) 10.1 61,365,683 37,930,238
Kot Addu Power Company Limited - - 257,534 6,863
Lucky Cement Limited 662,384 521,283 811,080 362,212
Lucky Core Industries Limited 84,103 65,483 - - 10.1 Fair value through profit or loss (held for trading)
Maple Leaf Cement Factory Limited 7,871,073 306,342 16,441,207 371,078
Mari Petroleum Company Limited 139,063 291,490 514,487 795,891 Term
Maturity year Effective yield (%) Carrying value
Principal
Market value
Meezan Bank Limited 462,947 74,701 3,579,752 356,329 (year / months) repayment

Mughal Iron & Steel Industries Limited 6,570,262 434,819 2,189,031 105,752 ----------------------- (Rupees in ‘000) -----------------------
Murree Brewery Company Limited 513,389 172,232 398,839 145,098 GOP Ijara Sukuk 5 Years - FRR 5 years 2028 15.59% 700,020 700,000 703,500
National Bank of Pakistan 1,000,000 32,110 1,000,000 23,590 GOP Ijara Sukuk 5 Years - FRR 5 years 2026 17.14% 488,881 527,500 459,347
GOP Ijara Sukuk 5 Years - FRR 5 years 2025 21.00% 92,588 100,000 83,790
National Foods Limited 1,280,500 185,673 50 5 GOP Ijara Sukuk 5 Years - FRR 5 years 2024 20% - 22% 1,767,773 1,774,625 1,773,391
National Refinery Limited - - 75,234 13,245 GOP Ijara Sukuk 5 Years - VRR 5 years 2028 21.04% 660,023 660,000 659,736
Nestle Pakistan Limited - - 17,099 100,371 GOP Ijara Sukuk 5 Years - VRR 5 years 2027 21.67% - 22.13% 263,995 264,900 269,084
Nimir Industrial Chemicals Limited 47,500 4,940 - - GOP Ijara Sukuk 5 Years - VRR 5 years 2026 21.49% - 21.92% 470,119 475,000 481,500
GOP Ijara Sukuk 5 Years - VRR 5 years 2025 21.49% - 21.83% 620,549 630,000 634,035
Octopus Digital Limited - - 901,195 51,053 GOP Ijara Sukuk 3 Years - FRR 3 years 2026 16.02% - 21.03% 1,768,396 1,773,000 1,811,693
Oil and Gas Development Company Limited 1,898,559 213,493 2,630,504 209,546 GOP Ijara Sukuk 3 Years - VRR 3 years 2026 21.03% 534,449 535,000 535,642
Packages Limited 398,015 210,983 424,534 157,146 GOP Ijara Sukuk 1 Year - VRR 1 year 2024 19.64% - 22.55% 994,081 995,000 1,000,809
Pakistan Aluminium Beverage Cans Limited 630,000 47,609 - - Pakistan Investment Bond (FRB) 10 years 2031 23.29% 1,327,578 1,400,000 1,326,640
Pakistan Investment Bond (FRB) 10 years 2030 22.53% 494,111 500,000 491,900
Pak Elektron Limited - - 7,382,364 95,602 Pakistan Investment Bond (FRB) 10 years 2028 22.55% 49,229 50,000 48,985
Pakistan Oilfields Limited - - 25,771 10,124 Pakistan Investment Bond (FRB) 5 years 2028 23.90% 7,612,136 7,840,000 7,597,071
Pakistan Oxygen Limited - - 300 42 Pakistan Investment Bond (FRB) 5 years 2027 22.59% 809,546 840,000 815,304
Pakistan Petroleum Limited 1,860,441 214,007 2,270,845 154,735 Pakistan Investment Bond (FRB) 5 years 2026 22.85% 1,709,145 1,750,000 1,717,100
Pakistan Investment Bond 10 years 2030 15.38% 1,116,938 1,470,000 1,016,583
Pakistan State Oil Company Limited - - 209,481 30,163 Pakistan Investment Bond 5 years 2027 16.20% 182,922 225,000 184,695
Pakistan Telecommunication Company Limited - - 17,813,000 108,659 Pakistan Investment Bond 5 years 2025 18.76% 442 500 417
Pakistan Tobacco Company Limited 116,271 131,454 58,871 56,747 Pakistan Investment Bond 3 years 2026 17.30% 2,561,545 2,850,000 2,552,217
Panther Tyres Limited - - 3,220,758 66,734 Pakistan Investment Bond 3 years 2025 19.40% 9,135 10,000 8,757
Treasury Bills 12 months 2024 21.32% - 21.37% 35,270,304 41,623,100 35,205,214
Pioneer Cement Limited 651,442 74,877 644,196 33,131 Treasury Bills 6 months 2024 21.31% - 21.92% 1,849,693 2,006,975 1,849,109
Power Cement Limited - - 1,917,500 8,859 Treasury Bills 3 months 2024 21.92% 139,191 140,000 139,164
As at December 31, 2023 61,492,790 69,140,600 61,365,683
As at December 31, 2022 37,994,914 38,889,665 37,930,238

148 149
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

10.1.1 These include PIBs of Rs. 75 million, Rs. 100 million & Rs. 300 million (December 31, 2022: Rs. 75 million & Rs. 13. INVESTMENTS IN MUTUAL FUNDS
(Rupees in ’000)
100 million) placed with State Bank of Pakistan as per the requirement of section 29 of Insurance Ordinance, 2000
carrying coupon rate of 7.5%, 8% & 12% per annum having maturity period of 5, 10 & 3 years and will mature on April Fair value through profit or loss (held for trading) 13.1 4,981,341 8,017,302
29, 2027, December 10, 2030 & July 4, 2026 respectively.

11. INVESTMENTS IN DEBT SECURITIES 13.1 Fair value through profit or loss (held for trading)
2023 2022
At fair value through profit or loss (held for trading)
Carrying Impairment / Market value Impairment /
Carrying value Market value
value provision provision
2023 2022

Carrying Impairment / Impairment / -------------------------------------------------------------------- (Rupees in ‘000) --------------------------------------------------------------------

Market value Carrying value Market value
value provision provision
Related parties 3,129,148 - 4,981,341 6,099,261 - 5,403,600
-------------------------------------------------------------------- (Rupees in ‘000) -------------------------------------------------------------------- Others - - - 2,609,750 - 2,613,702
Advance against the 3,129,148 - 4,981,341 8,709,011 - 8,017,302
purchase of term finance
certificate - - - 472,000 - 472,000
13.1.1 Details of mutual funds - fair value through profit or loss
Term finance certificates /
2023 2022
corporate sukuks 11.1 3,673,144 - 3,629,033 3,806,035 - 3,782,845
Market value Market value
No. of units in Rupees No. of units in Rupees
3,673,144 - 3,629,033 4,278,035 - 4,254,845 (000) (000)

Related parties
11.1 Term finance certificates / corporate sukuks

Alhamra Islamic Asset Allocation Fund 5,506,794 522,441 7,325,935 460,051
Details of the term finance certificates and corporate sukuks are as follows: Alhamra Islamic Income Fund 667,028 75,779 4,193,281 457,671
Market value Alhamra Islamic Stock Fund 149,237,689 2,093,805 195,145,209 1,709,472
MCB Cash Management Optimizer 1,978 201 4,105,832 416,746
Maturity Face value per
date
2023 2022
certificate
2023 2022 Pakistan Asset Allocation Fund 2,932,844 337,190 3,878,276 284,360
-----(No. of certificates) ---- ----------------------- (Rupees in ‘000) ----------------------- MCB Pakistan Opportunity Fund 540,454 81,073 - -
MCB Pakistan Dividend Yield Plan - - 500,000 50,200
Askari Bank Limited VII - TFC 17-Mar-30 100 100 1,000 99,500 100,980
MCB Pakistan Sovereign Fund 134,363 8,042 - -
Askari Bank Limited VI - TFC Perpetual 100 100 1,000 100,000 100,000
Aspin Pharma Private Limited - Sukkuk - - 820 10 - 16,656
MCB Pakistan Stock Market Fund 14,038,557 1,862,810 23,141,205 1,846,772
Bank Al Habib Limited - TFC 30-Sep-31 195,000 195,000 5 952,300 998,000 Pakistan Income Fund - - 3,052,727 178,328
Bank Alfalah Limited - TFC 15-Jan-24 20,000 20,000 5 99,433 92,514 4,981,341 5,403,600
Dubai Islamic Bank Sukuk 2-Dec-32 22 - 1,000 22,132 -
Ghani Chemical Industries Limited TFC 3-Feb-24 600 600 12 2,455 11,499
Habib Bank Limited II - TFC 26-Sep-34 500 500 100 50,000 50,000 2023 2022
Jahangir Siddiqui & Company Market value Market value
Limited - TFC - - 30,000 2 - 51,216 No. of units in Rupees No. of units in Rupees
(000) (000)
Meezan Bank Limited Sukuk 16-Dec-31 450 - 1,000 442,917 -
Others
Meezan Bank Limited - Sukuk 9-Jan-30 500 500 1,000 501,250 513,600
Meezan Bank Limited - Sukuk Perpetual - 250 1,000 - 250,000
Alfalah GHP Money Market Fund - - 9,892,558 973,701
Pakistan Energy Sukuk II 21-May-30 115,000 115,000 5 575,173 574,999 Faysal Income and Growth Fund - - 1,000 116
Samba Bank Limited TFC 1-Mar-31 4,250 4,250 100 423,953 424,107 Faysal Money Market Fund - - 4,429 454
The Bank Of Punjab I TFC 17-Apr-28 1,000 3,400 100 100,334 339,184 Faysal Savings and Growth Fund - - 7,939,242 872,443
The Bank Of Punjab II TFC 23-Apr-28 2,580 2,580 100 259,586 260,090 NBP Money Market Fund - - 24,819,709 247,060
340,102 373,100 3,629,033 3,782,845 HBL Cash Fund - - 1,827,806 187,232
HBL Financial Sector Income Fund Plan - - 551,773 55,849
HBL Islamic Income Fund - - 796,674 88,022
12.
INVESTMENT IN TERM DEPOSITS JS Government Securities Fund - - 486,137 51,078
(Rupees in ’000)
NIT Money Market Fund - - 14,226,323 137,747
Deposits maturing within 12 months (held to maturity) 12.1 75,000 2,276,000 - 2,613,702

12.1 This represents term deposits with banks which carry profit rate of 21% per annum (December 31, 2022: 14.8% to
16% per annum) and maturing in January 2024 (December 31, 2022: January, 2023 to September, 2023).


150 151
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

14.
(INSURANCE / TAKAFUL) / 17.
CASH AND BANK
(REINSURANCE / RETAKAFUL RECEIVABLES) (Rupees in ’000) (Rupees in ’000)
- Cash in hand 617 71
Due from insurance contract holders - Group life business 41,782 36,098 - Policy stamps 9,186 9,870
Less: provision for impairment of receivables 9,803 9,941
from insurance contract holders 14.2 - -
41,782 36,098 Cash at bank

Due from reinsurers / retakaful operators 52,361 26,358 - Current accounts 227,763 161,024
Net (insurance / takaful) / (reinsurance / retakaful) receivable 94,143 62,456 - Saving accounts 17.1 3,689,030 5,146,032
3,916,793 5,307,056
14.1 The maximum exposure of against such receivables, calculated based on average month-end balances, are as
follows: 3,926,596 5,316,997
(Rupees in ’000)
17.1 This carries profit rate ranging from 12% to 21% (December 31, 2022: 7.25% to 17.5%) per annum.
MCB Islamic Bank Limited 4,658 12,537
MCB Bank Limited 9,680 4,769 17.2 Cash and cash equivalents
Others 1,707 2,078 (Rupees in ’000)
16,045 19,384 Cash and cash equivalents includes the following for the
None of these balances are past due for more than 365 days. purpose of cash flow statement:

- Cash in hand and policy stamps 17 9,803 9,941

14.2 Movement in provision for impairment of receivables from - Cash at bank 17 3,916,793 5,307,056
insurance contract holders - Term deposits maturing within three months 12 75,000 1,275,000
4,001,596 6,591,997
Opening - (8,343) 18. ORDINARY SHARE CAPITAL
Provision for the year 2,660 -
Provision written - off (2,660) 8,343 18.1 Authorised capital
Closing - -
2023 2022 2023 2022
No. of shares in ‘000 ------- (Rupees in ‘000) -------
15.
OTHER LOANS AND RECEIVABLES
Ordinary shares of Rs. 10 each
Receivable from related parties - 6 250,000 250,000 fully paid in cash 2,500,000 2,500,000
Accrued income on investments 1,177,420 427,793
Security deposits 48,141 57,117 18.2 Issued, subscribed and paid up share capital
Receivable from gratuity fund 11,791 -
Loan to employees - secured 15.1 23,551 21,873 2023 2022 2023 2022
Advance to supplier 5,547 43,980 No. of shares in ‘000 ------- (Rupees in ‘000) -------
Dividend receivable 9,468 83,307 Ordinary shares of Rs. 10 each
Receivable against the sale of investment 98,143 132,912 250,000 250,000 fully paid in cash 2,500,000 2,500,000
Other receivables 4,997 11,335
1,379,058 778,323
18.3 Share capital includes Rs. 364.66 million (2022: Rs. 364.66 million) transferred to the statutory funds.
15.1. This represents interest free loans secured against the gratuity entitlement and are repayable within one year of the
disbursement.

16.
PREPAYMENTS (Rupees in ’000)

Prepaid rent- Ijarah term 17,410 10,698
Prepaid miscellaneous expenses 16.1 37,759 30,957
55,169 41,655

16.1 These include prepayments related to insurance and software subscriptions.

152 153
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

19. INSURANCE / TAKAFUL LIABILITIES (Rupees in ’000) 19.5 Liabilities under group insurance / takaful contracts (Rupees in ’000)
(other than investment linked)
Reported outstanding claims (including claims in payment) 19.1 3,377,054 3,122,497
Incurred but not reported claims 19.2 229,319 190,048 Gross of reinsurance / retakaful 377,626 304,087
Investment component of unit-linked and account Reinsurance / retakaful credit (178,533) (149,232)
value policies 19.3 74,570,484 58,966,454 Net of reinsurance / retakaful 199,093 154,855
Liabilities under individual conventional insurance /
takaful contracts 19.4 27,503 18,319 19.6 Other insurance / takaful liabilities
Liabilities under group insurance
contracts (other than investment linked) 19.5 199,093 154,855 Gross of reinsurance / retakaful 1,027,288 902,851
Other insurance / takaful liabilities 19.6 902,282 812,525 Reinsurance / retakaful credit (125,006) (90,326)
Gross insurance / takaful liabilities 79,305,735 63,264,698 Net of reinsurance / retakaful 902,282 812,525

Surplus of Participant Takaful Fund 254,253 143,963 20. RETIREMENT BENEFIT OBLIGATIONS
Total Insurance / takaful liabilities 79,559,988 63,408,661
20.1 As stated in note 3.5, the Company operates a funded gratuity scheme covering eligible employees who have complet-
ed the minimum qualifying eligible service period of six months. The employees are entitled to gratuity on the basis of
19.1
Reported outstanding claims last drawn monthly gross salary on normal retirement or on death in service on the number of years of services with
the Company. Contribution to the fund is made and expense is recognised on the basis of actuarial valuations carried
Gross of reinsurance / retakaful out at each year end using the projected unit credit method.
Payable within one year 3,471,607 3,222,448
Recoverable from reinsurers / retakaful operators (94,553) (99,951) 20.1.1 Responsibility for the governance of the plans, including investment decisions and contribution schedules, lies with the
Net reported outstanding claims 3,377,054 3,122,497 Board of Trustees. The Company appoints the Trustees and all trustees are employees of the Company. Details of the
Company’s obligation under the staff gratuity scheme determined on the basis of an actuarial valuation carried out by
an independent actuary as at December 31, 2023 under the Projected Unit Credit Method are as follows:
19.2 Incurred but not reported claims

Individual life 20.2 Statement of financial position reconciliation
(Rupees in ’000)
Gross of reinsurance / retakaful 280,053 223,514
Reinsurance / retakaful recoveries (105,827) (80,349) Present value of defined benefit obligations 20.2.1 203,354 189,140
Net of reinsurance / retakaful 174,226 143,165 Fair value of plan assets 20.2.2 (215,145) (184,274)
Net (surplus) / liability at end of the year 20.2.4 (11,791) 4,866
Group life
Gross of reinsurance / retakaful 133,185 105,264
Reinsurance / retakaful recoveries (78,092) (58,381) 20.2.1 Movement in present value of defined benefit obligations
Net of reinsurance / retakaful 55,093 46,883
Present value of defined benefit obligations at beginning of the year 189,140 178,588
Net incurred but not reported claims 229,319 190,048
Current service cost 20.2.3 41,714 40,817
19.3
Investment component of unit linked and account value policies Interest cost 20.2.3 32,503 24,894
Benefits paid during the year 20.2.2 (62,176) (36,198)
Investment component of unit linked policies 73,346,877 57,385,281 Remeasurement (gain) on obligation:
Investment component of account value policies 1,223,607 1,581,173 - due to changes in financial assumptions 20.2.3 2,173 (18,961)
74,570,484 58,966,454 Present value of defined benefit obligations at end of the year 203,354 189,140

19.4 Liabilities under individual conventional insurance / takaful contracts 20.2.2 Movement in fair value of plan assets

Gross of reinsurance / retakaful 29,348 20,465 Fair value of plan assets at beginning of the year 184,274 185,048
Reinsurance / retakaful credit (1,845) (2,146) Contributions made by the Company to the Fund 53,000 29,226
Net of reinsurance / retakaful 27,503 18,319 Interest income on plan assets 20.2.3 28,518 22,887
Benefits paid during the year (62,176) (36,198)
Remeasurement gain / (loss) on plan assets 20.2.3 11,529 (16,689)
Fair value of plan assets at end of the year 215,145 184,274

154 155
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

20.2.3 Expense recognised in statement of profit or loss 20.4.1 The plans expose the Company to actuarial risks such as:
and other comprehensive income (Rupees in ’000)
Salary risks
Current service cost 20.2.1 41,714 40,817
Interest cost 20.2.1 32,503 24,894 The risks that the final salary at the time of cessation of service is higher than what was assumed. Since the benefit is
Interest income on plan assets 20.2.2 (28,518) (22,887) calculated on the final salary, the benefit amount increases similarly.
Expense for the year recognised in the statement of profit or loss 45,699 42,824
Discount risks
Remeasurement loss on defined benefit obligation 20.2.1 (2,173) (18,961)
Remeasurement gain on fair value of plan assets 20.2.2 11,529 16,689 The risk of volatile discount rates over the funding life of the scheme. The final effect could go either way depending on
Amount recognised in the other comprehensive income 9,356 (2,272) the relative of salary increases, timing of contributions, performance of investments and outgo of benefits.

Mortality / withdrawal risks

20.2.4 Net recognised liability
The risks that the actual mortality / withdrawal experience is different from expected. The effect depends upon the ben-
Net liability / (surplus) at beginning of the year 4,866 (6,460) eficiaries’ service / age distribution and the benefit.
Net expense recognised in statement of profit or loss 20.2.3 45,699 42,824
Expense recognised in other comprehensive income 20.2.3 (9,356) (2,272) Investment risks
Contributions made to the Fund during the year (53,000) (29,226)
Net (surplus) / liability at end of the year 20.2 (11,791) 4,866 The risk of the investment underperforming and not being sufficient to meet the liabilities. This is managed by formulat-
ing an investment policy and guidelines based on which investments are made after obtaining approval of trustees of
(Rupees in ‘000) funds.

20.2.5 Estimated gratuity cost for the year ending December 31, 2024, is as follows: In case of the funded plan, the investment positions are managed within an Asset-Liability Matching (ALM) framework
to ensure that long-term investments are in line with the obligation under the retirement benefit plan. The Board of
Current service cost 40,856 Trustees actively monitors how the duration and the expected yield of the investments are matching the expected cash
Net interest cost 1,875 outflows arising from the retirement benefit obligations. The Board of Trustees has not changed the process used to
Total expense to be recognised in statement of profit or loss 42,731 manage its risks from previous periods. Investments are well diversified.

20.3 Plan assets comprise of following: The expected return on plan assets is assumed to be the same as the discount rate (as required by International
2023 2022 Accounting Standard IAS 19). The actual return depends on the assets underlying the current investment policy and
(Rupees in ‘000) % age (Rupees in ‘000) % age their performance. Expected yields on fixed interest investments are based on gross redemption yields as at the date
of financial statement. Expected return on equity investments reflect long term real rates of return experienced in the
market.
Listed Equities - - 52,562 28.52
Government Securities 211,422 98.27 99,503 54.00 20.5 Sensitivity analysis for actuarial assumptions
Bank balance (book overdraft) (17,409) (8.09) 4,186 2.27
Mutual funds 21,132 9.82 28,023 15.21 The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:
Fair value of plan assets at end of the year 215,145 100.00 184,274 100.00

20.4
The principal assumptions used in the actuarial valuations carried out as of December 31, 2023, using the ‘Projected (Rupees in ’000)
Unit Credit Method’, are as follows: Discount rate (1% increase) (8,442) (8,786)
Gratuity fund Discount rate (1% decrease) 9,383 9,804
Future salary increase rate (1% increase) 10,807 11,055
---------------------- ( % ) ---------------------- Future salary increase rate (1% decrease) (9,870) (10,056)
Discount rate per annum 15.5 14.5
Expected per annum rate of return on plan assets 15.5 14.5 The impact on defined benefit obligation due to increase in life expectancy by 1 year would be Rs. 79,090 (2022: Rs.
Expected per annum rate of increase in salary level 3.00 - 11.00 3.00 - 11.00 62,605)
Expected mortality rate LIC 94-96 Mortality LIC 94-96 Mortality
table for males table for males The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant.
(rated down by 3 years (rated down by 3 years In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the
for females) for females) sensitivity of the defined benefit obligation to significant assumptions, same method (present value of the defined ben-
Expected withdrawal rate 60 60 efit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as
when calculating the gratuity liability.



156 157
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

20.6 The weighted average duration of the defined benefit obligation is 5.62 years. Besides the number of employees cov-
ered in the scheme at December 31, 2023 were 732 (December 31, 2022: 820). Recognised Recognised Balance as
Balance as
in statement in other at
20.7 The expected maturity analysis of undiscounted retirement benefit plan is as follows: at January
of comprehensive December
01, 2023
(Rupees in ‘000) profit or loss income 31, 2023
Less than a year 2,842
-------------------- (Rupees in ‘000) --------------------
Between 1 - 2 years 35,737
Between 2 - 3 years 3,900 On retained earning - Ledger account D (382,635) (286,967) - (669,602)
Between 3 - 4 years 1,211 Others 5,991 12,671 (6,356) 12,306
Between 4 - 5 years 7 (376,644) (274,296) (6,356) (657,296)

20.8 Historical Information 2023 2022 2021 2020 2019

---------------------------- (Rupees in ‘000) ----------------------------
Recognised Recognised Balance as
Present value of defined benefit obligation 203,354 189,140 178,588 178,021 107,094 Balance as
in statement in other at
at January
Fair value of plan assets (215,145) (184,274) (185,048) (65,672) (70,068) of comprehensive December
01, 2022
(Surplus) / deficit (11,791) 4,866 (6,460) 112,349 37,026 profit or loss income 31, 2022

-------------------- (Rupees in ‘000) --------------------

2023 2022 2021 2020 2019
20.9 Experience adjustment On retained earning - Ledger account D (240,865) (141,770) - (382,635)
Others 9,342 (3,031) (320) 5,991
Experience adjustments on obligation 1% -10% -24% 18% 20% (231,523) (144,801) (320) (376,644)

Experience adjustments on asset 5% -9% -4% -3% -11%

(Rupees in ’000)
20.10 Gratuity cost to be recognised in the statement of profit or loss in the next financial period is not necessarily the amount 22. LEASE LIABILITIES 22.1 103,455 159,592
of the contribution for that period. Decision about the contribution is made by the Company based on the allowability
under the Insurance Tax Rules, 2002 and the availability of surplus funds, etc. 22.1
Lease liabilities - movement

20.11 The investment out of staff gratuity scheme have been made in accordance with the provisions of Section 218 of the Opening balances 159,592 229,834
Companies Act, 2017 and the rules formulated for this purpose. Addition during the year 8,936 -
Derecognition during the year (3,494) (7,068)
21.
DEFERRED TAXATION 165,034 222,766
(Rupees in ’000)
Deferred debits arising due to: Interest accretion during the year 17,931 28,636
Fixed assets and intangibles (15,955) (5,191) 182,965 251,402
Retirement benefit obligations 3,649 (750)
Surplus on revaluation of available for sale assets - (50) Repaid during the year (79,510) (91,810)
(12,306) (5,991) Closing balances 103,455 159,592
Deferred credits arising due to:
Retained earnings - Ledger Account D 669,602 382,635 Current portion 71,514 63,337
Deferred tax liability 657,296 376,644 Non current portion 31,941 96,255
103,455 159,592

22.2
Lease liabilities - maturity analysis

The contractual maturity analysis of these is presented below:

Current
Not later than one year 71,514 63,337

Non-current
Later than one year but not later than three years 31,941 75,631
Later than three years but not later than five years - 20,624
31,941 96,255
103,455 159,592

158 159
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

23. (INSURANCE / TAKAFUL) / The life insurance industry has been granted interim relieves by the Honorable High Courts of Sindh and Lahore where-
(REINSURANCE / RETAKAFUL) PAYABLES (Rupees in ’000) by the provincial tax authorities of Sindh and Punjab have been restrained and no sales tax on services has so far been
paid on life and health insurance in either province.
Due to reinsurers / retakaful operators 102,148 175,083
In view of the opinion of the legal advisors, and pending the adjudication of petitions filed, the Company has neither
billed its customers, nor recognised the contingent liability for SST & PST, which, calculated on the basis of risk premium
24.
OTHER CREDITORS AND ACCRUALS and excluding the investment amount allocated to unit linked policies as per the opinion of legal advisors, aggregated to
Rs. 1,052.46 million (2022: Rs. 775.53 million). In Balochistan province, given that the Company has limited operations
Agents commission payable 349,031 417,374 in that provice, the amount of contingent sales tax liability for BSTS, calculated on the similar basis as PST & SST, is
Payable to related parties 9,530 8,126 immaterial. The Company, along with the IAP and other insurance companies, will continue its administrative efforts to
Payable against the purchase of investments 232,841 152,701 convince the provincial revenue authorities about the merit of the case.
Accrued expenses 24.1 394,034 308,843
Other tax payable 17,456 38,709 25.2 COMMITMENTS
1,002,892 925,753 (Rupees in ’000)
25.2.1 Commitments in respect of ljarah rentals
24.1 This includes provision for compensated absences amounting in aggregated to Rs. 68.42 million (December 31, 2022:
Rs. 73.42 million). Not later than one year 67,254 80,066
Later than one year and not later than five years 94,587 176,989
25. CONTINGENCIES AND COMMITMENTS 161,841 257,055

25.1 CONTINGENCIES Commitments represent ljarah rentals for vehicles payable in future years.

Sales tax on life insurance premium 26. NET PREMIUM / CONTRIBUTION REVENUE

Sindh Revenue Board (SRB) vide notification no. SRB 3-4/5/2019 dated May 8, 2019 extended the exemption on life Gross premiums / contributions
insurance till June 30, 2019. Subsequently, life insurance was made taxable from July 1, 2019 at the rate of 3% and
group life insurance at the rate of 13%. With effect from November 1, 2018, the Punjab Revenue Authority (PRA) with- Regular premium / contribution individual policies*
drew its exemption on life and health insurance and made the same subject to Punjab Sales Tax (PST). The Company
collectively through the forum of Insurance Association of Pakistan (“IAP”) filed a constitutive petition in the Lahore High - first year 2,865,715 3,080,587
Court (LHC) and in the High Court of Sindh at Karachi on September 28, 2019 and November 28, 2019 against PRA - second year renewal 2,368,874 2,685,567
and SRB respectively on the following main contentions: - subsequent years renewal 7,978,652 7,120,613

- Subtantiating the Company’s view that insurance is not a service but in fact, in sum and substance, a contingent Single premium / contribution individual policies* 9,287,814 7,339,582
contract under which payment is made on the occurance of the event, specified in the term of contract or policy, and is Group policies without cash values 916,878 743,748
thus a financial arrangement. Superior courts in foreign jurisdictions have held that insurance is not a service; Less: experience refund (67,105) (21,296)

- A question of constitutionality arose on the levy of provincial sales tax on life insurance, which in their view, was Total gross premiums / contributions 23,350,828 20,948,801
a Federal subject, since the Federation has retained a legislative mandate over all laws relating to insurance
under Entry 29 of the said List, therefore, only the Federation is entitled to levy and any tax in relation to insurance Less: reinsurance premiums / retakaful contributions ceded
business; and
On individual life first year business (47,660) (55,340)
- A vast majority of premium received from a policyholder, during the life of the policy, is in fact channeled to the
policyholders’ investment account and as such this is critically important in exposing the legal fallacies embodied On individual life second year business (35,376) (38,247)
in the Rules. Thus, the legal advisors had expressed the view that if the entire Gross Written Premium (GWP) was On individual life subsequent renewal business (155,857) (180,691)
subjected to the provincial sales tax, the this was akin to a direct tax on the policyholders, in the nature of income On individual life single premium business (6,283) (6,565)
tax, wealth tax or capital value tax, all of which fall exclusively within the domain of Federal Legislature. On group policies (487,574) (382,650)
Less: Experience refund from reinsurers 67,581 30,144
In Sindh, on June 22, 2020, the SRB through Notification No. SRB-3-4/13/2020, has made taxable, life insurance w.e.f.
July 1. 2020 at the full rate, and issued a conditional exemption for the financial year 2019-20, from the levy of SST, (665,169) (633,349)
subject to the person providing or rendering life insurance services commencing e-depositing with SRB, the amount of
SST due on such services from the tax period from July 1, 2020 onward. On June 29, 2020 SRB through another notifi- Net premiums / contributions 22,685,659 20,315,452
cation No.SRB-3-4/18/2020 has amended the responsibility of withholding agent requiring clients to also withheld SST
on services of life and health insurance. The Company with other life insurance companies, have filed another petition * Individual policies are those underwritten on an individual basis.
at the Hon’ble SHC. The Hon’ble SHC has directed that no coercive measure will be taken until the next date of hearing.
Further, the Hon’ble SHC through its interim order dated December 8, 2020 impleaded that the Federal Government be
also added as one of the Respondents.

160 161
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

27.
INVESTMENT INCOME (Rupees in ’000) 30.
OTHER INCOME (Rupees in ’000)

Income from equity securities Return on bank balances 876,612 716,110
Mark-up on policy loans 4,862 4,060
Dividend income Gain on disposal of fixed assets 1,407 948
Available for sale 801 1,431 Gain on derecognition of ROU asset 638 1,937
Fair value through profit or loss 915,695 692,517 883,519 723,055
916,496 693,948
Income from government securities 31.
CHANGE IN UNREALISED LOSSES
ON AVAILABLE-FOR-SALE FINANCIAL ASSETS
Available for sale - 18,151
Fair value through profit or loss 9,661,183 3,924,137 - Equity securities - (1,092)
9,661,183 3,942,288 - Government securities - -

Income from debt securities - fair value through profit or loss - (1,092)

Return on TFCs and corporate sukuks 782,369 599,830 32.
NET INSURANCE / TAKAFUL BENEFITS

Income from term deposit receipts - held to maturity Gross claims
Claims under individual policies
Return on term deposit receipts 494,752 687,513 - by death (780,495) (671,184)
11,854,800 5,923,579 - by insured event other than death (3,823) (2,483)
- by maturity (7,416,398) (5,225,759)
28.
NET REALISED FAIR VALUE GAINS / (LOSSES) ON - by surrender (10,713,500) (8,337,714)
FINANCIAL ASSETS Total gross individual policy claims (18,914,216) (14,237,140)

Available for sale Claims under group policies
Realised gains / (losses) on listed equities - by death (508,936) (350,020)
- Listed equities 8,203 (6,249) - by insured event other than death (12,519) (2,374)
8,203 (6,249) Total gross group policy claims (521,455) (352,394)
Fair value through profit or loss
Realised gains / (losses) on: Total gross claims (19,435,671) (14,589,534)
- Equity securities 1,809,365 (113,280)
- Government securities (98,803) (144,242) Less: Reinsurance / retakaful recoveries
- Debt securities (15,272) - - on individual life claims 130,378 175,777
- Mutual funds 272,064 26,126 - on group life claims 315,876 187,608
1,967,354 (231,396) 446,254 363,385

1,975,557 (237,645) Net insurance / takaful benefit expense (excluding claims related expenses) (18,989,417) (14,226,149)

29. NET FAIR VALUE GAINS / (LOSSES) ON FINANCIAL

ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS - UNREALISED

Net unrealised gains / (losses) on:
- Equity securities 1,644,201 (1,822,414)
- Government securities (127,107) (64,676)
- Debt securities (44,111) (23,190)
- Mutual Funds 1,852,193 (691,709)
Total gain / (loss) 3,325,176 (2,601,989)
Less: Investment related expenses (101,716) (80,122)

3,223,460 (2,682,111)

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Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

32.1 Claim development table 33.

ACQUISITION EXPENSES (Rupees in ’000)

32.1.1 Individual life claims Remuneration to insurance / takaful intermediaries
Incident reported on individual policies / contracts:
Incident year 2019 2020 2021 2022 2023
---------------------------- (Rupees in ‘000) ---------------------------- - Commission on first year premium / contribution (987,272) (1,177,551)
- Commission on second year premium / contribution (140,567) (149,617)
Estimate of ultimate claim costs: - Commission on subsequent years renewal
At the end of accident year 237,924 288,432 463,829 337,990 468,950 premium / contribution (172,903) (157,544)
One year later 345,644 526,231 720,987 547,362 - - Commission on single premium / contribution (264,149) (209,169)
Two years later 361,064 550,771 783,041 - - - Other benefits to insurance / takaful intermediaries (334,480) (358,955)
Three years later 369,161 576,077 - - - (1,899,371) (2,052,836)
Four years later 395,427 - - - -
Current estimate of cumulative claims 395,427 576,077 783,041 547,362 468,950 Remuneration to insurance / takaful intermediaries
Less: cumulative payments to date (395,427) (576,077) (779,552) (535,768) (293,952) on group policies:
Liability recognised in the statement
of financial position - - 3,489 11,594 174,998 - Commission (20,866) (18,803)
- Other benefits to insurance / takaful intermediaries (4,568) (4,187)
(25,434) (22,990)
32.1.2 Group life claims Other acquisition costs
Incident reported
Incident year 2019 2020 2021 2022 2023 - Employee benefit cost 33.1 (659,430) (633,543)
---------------------------- (Rupees in ‘000) ---------------------------- - Traveling expenses (13,306) (11,916)
- Information technology expense (9,219) (10,037)
Estimate of ultimate claim costs: - Printing and stationery (4,824) (7,033)
At the end of accident year 342,820 559,852 343,327 285,806 396,234 - Depreciation (38,606) (34,846)
One year later 452,433 662,492 405,755 382,969 - - Depreciation - Right of use asset (22,768) (23,675)
Two years later 454,575 665,025 407,855 - - - Rent, rates and taxes (57,099) (52,682)
Three years later 455,005 666,525 - - - - Insurance cost (3,438) (2,078)
Four years later 455,005 - - - - - Car fuel and maintenance (102,559) (79,976)
Current estimate of cumulative claims 455,005 666,525 407,855 382,969 396,234 - Postage (11,427) (9,560)
Less: cumulative payments to date (455,005) (666,525) (407,255) (382,769) (338,907) - Electricity, gas and water (32,245) (26,352)
Liability recognised in the statement - Office repairs and maintenance (69,298) (61,157)
of financial position - - 600 200 57,327 - Entertainment (18,783) (16,269)
- Training and development (8,456) (14,097)
32.1.3 Insurance benefits unclaimed at year end - Marketing cost (124,676) (59,014)
- Financial charges (8,248) (13,703)
1-6 7-12 13-24 25-36 Beyond - Write off against property and equipment (4,518) -
Total - Miscellaneous (159) 5,217
months months months months 36 months
- Legal and professional charges (8,553) (5,239)
-------------------------------------------- (Rupees in ‘000) --------------------------------------------
- Stamp duty (49,696) (50,616)
- Medical examination fee (2,023) (1,925)
Unclaimed maturity benefits 2,803,091 1,463,587 549,191 552,400 83,084 154,829 (1,249,331) (1,108,501)
Unclaimed death benefits 266,991 193,793 49,690 17,249 4,211 2,048
Claims not encashed 157,597 156,442 1,155 - - - (3,174,136) (3,184,327)
3,227,679 1,813,822 600,036 569,649 87,295 156,877

33.1 Employee benefit cost includes charges for post employment benefit of Rs. 10.345 million (2022: Rs.10.01 million).

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Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

34.
MARKETING AND ADMINISTRATION EXPENSES 35.2 Donations
(Rupees in ’000)

Employee benefit cost 34.1 & 34.2 (542,240) (451,272) This represents the charity payable against purification of income of Sharia compliant securities.
Travelling expenses (7,729) (8,417)
Advertisements and sales promotion (52,162) (13,204) 36. FINANCE COSTS
(Rupees in ’000)
Printing and stationery (22,293) (24,377)
Depreciation (27,910) (18,125) Markup on borrowings - net of government grant - (609)
Depreciation Right of use asset (35,230) (34,402) Interest expense on lease liabilities (9,683) (17,583)
Amortisation (13,811) (13,150) (9,683) (18,192)
Rent, rates and taxes (4,294) (3,940)
Legal and professional charges (78,009) (47,412) 37. INCOME TAX EXPENSE
Electricity, gas and water (20,118) (16,801)
Entertainment (7,942) (5,966) For the year
Vehicle running expenses (36,673) (32,156) - Current (382,192) (162,666)
Office repairs and maintenance (31,228) (23,823) - Prior 23,361 (5,141)
Appointed actuary fees (14,235) (6,446) - Deferred (274,296) (144,801)
Postages, telegrams and telephone (54,625) (28,821) (633,127) (312,608)
Bank charges (11,923) (5,591)
Directors’ Fee (1,135) (305) 37.1 Relationship between tax expense and accounting profit
Insurance expenses (2,798) (3,860)
Annual supervision fee (33,174) (27,436) Profit before tax 1,541,202 810,310
Provision for doubtful debts (2,660) - Applicable tax at the rate of 29% 446,949 234,990
Information technology expenses (107,022) (87,800) Effect of super tax on current year’s profit 154,120 32,412
Training and development (1,618) (2,896) Effect of prior period tax charge (23,361) 5,141
Write off against property and equipment (987) (4,160) Effect of change in tax rates 68,481 31,934
Miscellaneous (7,350) 2,039 Others (13,062) 8,131
(1,117,166) (858,321)
Tax expense for the year 633,127 312,608
34.1 Employee benefit cost
38. EARNINGS PER SHARE
Salaries, allowances and other benefits 506,886 420,492
Charges for post employment benefit 35,354 30,780 Profit after tax for the year 908,075 497,702
542,240 451,272
(Number of shares in ‘000)
34.2 Total number of employees as at December 31, 2023 are 1,802 (2022: 1,742) which includes permanent and con- Weighted average number of ordinary share
tractual employees. Average number of employees during year ended December 31, 2023 were 1,772 (2022: 1,866). outstanding as at year end 250,000 250,000

35.
OTHER EXPENSES ------------- (Rupees) -------------
(Rupees in ’000)

Auditor’s remuneration 35.1 (6,742) (4,486) Basic earnings per share 38.1 3.63 1.99
Fee and subscription (3,952) (1,085)
Chariy and donations 35.2 (1,054) (1,143) 38.1
There are no dilutive affect on the basic earnings per share of the Company.
(11,748) (6,714)

35.1
Auditors’ remuneration

Annual audit fee (2,067) (1,731)
Half yearly review (707) (593)
Annual review / half year review - Window Takaful Operations (1,034) -
Other certifications (2,385) (1,801)
Out of pocket (549) (361)
(6,742) (4,486)

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Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

39. RELATED PARTIES Lalpir Solar Power (Private) Limited Group Entity
MCB Bank Limited - Provident Fund Group Entity
39.1 List of related parties MCB Islamic Bank Limited Common Directorship
MCB Leasing Closed Joint Stock Company Group Entity
Name of related party Relationship % of Share Nishat (Gulberg) Hotels & Properties Limited. Group Entity
holding Nishat Automobile (Private) Limited Group Entity
Nishat Commodities (Private) Limited Group Entity
D.G. Khan Cement Company Limited Common Directorship 0.39% Nishat Farms Supplies (Private) Limited Group Entity
Nishat Mills Limited Common Directorship 0.11% Nishat Global China Company Limited Group Entity
MCB Bank Limited Common Directorship 0.90% Nishat Hospitality (Private) Limited Group Entity
Nishat Chunian Limited Other Related Party 2.39% Nishat International FZE Group Entity
Nishat Chunian Power Limited Other Related Party 0.54% Nishat Linen Trading LLC Group Entity
Nishat Power Limited Group Entity
Name of related party Relationship Nishat Real Estates Development
Company (Private) Limited Group Entity
Din Farm Products (Private) Limited Common Directorship Nishat UK (Private) Limited Group Entity
Din Leather Private Limited Common Directorship Nishat USA Incorporated Group Entity
Din Textile Mills Limited Common Directorship Security General Insurance Company Limited Group Entity
Emporium Properties (Private) Limited Common Directorship Adamjee Life Assurance Company
Golf View Land (Private) Limited Common Directorship Limited Employee Gratuity Fund Other Related Party
Hyundai Nishat Motor (Private) Limited Common Directorship MCB Non-Bank Credit Organization,
MCB Investment Management Limited Group Entity CJSC, Azerbaijan Other Related Party
National Textile Foundation Common Directorship Nishat Chunain Electric Company Limited Other Related Party
Nishat Agriculture Farming (Private) Limited Common Directorship Nishat Chunian USA Incorporated Other Related Party
Nishat Agrotech (Private) Limited Common Directorship Din Energy Limited Other Related Party
Nishat Dairy (Private) Limited Common Directorship Din Power Limited Other Related Party
Nishat Developers (Private) Limited Common Directorship Kanal (Private) Limited Other Related Party
Nishat Hotels & Properties Limited Common Directorship Din Leather (Private) Limited Other Related Party
Nishat Linen (Private) Limited Common Directorship Din Ventures (Private) Limited Other Related Party
Nishat Papers Products Company Limited. Common Directorship Din Farm Products (Private) Limited Other Related Party
Nishat Sutas Dairy Limited Common Directorship Mr. Absar Azeem Burney Key Management Person
Pakistan Aviators & Aviation Group Entity Mr. Ali Haider Key Management Person
Pakgen Power Limited Mr. Amin Nizar Ali Key Management Person
(Formerly Aes Pak Gen (Private) Company) Common Directorship Mr. Asif Mirza Key Management Person
Adamjee Insurance Company Limited Parent Company Mr. Bakht Jamal Key Management Person
Mr. Ahmad Alman Aslam Director Mr. Athar Chaudhry Key Management Person
Mr. Imran Maqbool Director Mr. Jalal Meghani Key Management Person
Mr. Muhammad Ali Zeb Director Mr. Manzar Mushtaq Key Management Person
Mr. Muhammad Umer Mansha Director Mr. Arsalan Ahmed Khan Key Management Person
Mr. S.M. Jawed Director Mr. Samad Ali Naqvi Key Management Person
Mr. Shahmeer Khalid Butt Director Mrs. Zehra Faiz Key Management Person
Mrs. Naz Mansha Director Mr. Sheraz Bukhari Key Management Person
Next Commercial Fz-Lcc (UAE) Director as Officeholder Mr. Amin Shaikh Key Management Person
Next Health Services (Private) Limited Director as Officeholder
Next Pharmaceuticals Products (Private) Limited Director as Officeholder
Nishat (Aziz Avenue) Hotels & Properties Limited. Group Entity
Nishat (Raiwind) Hotels & Properties Limited. Group Entity
Lalpir Power Limited (Formerly As Lalpir
(Private) Limited) Group Entity

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Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

(Rupees in ’000)
39.2 RELATED PARTY TRANSACTIONS Associated undertakings
Premium / contribution due but unpaid 5,618 14,106
The related parties comprise of the parent company, directors, key management personnel, associated undertakings, Bank deposits 2,596,696 1,851,156
group companies, entities with common directors and staff gratuity fund. Related party transactions and balances, Investments held 7,184,206 7,348,266
including those disclosed elsewhere in these financial statements are given below: Dividend receivables 6,092 26,788
Accrued income - 41,548
Commission payable 296,091 334,192
(Rupees in ’000)
Transactions during the year Claims payable 1,000 -
Holding company
Premium written 5,553 5,385 Other related parties
Insurance expense 34,863 30,389 Premium / contribution due but unpaid 5,792 5,278
Claims expense - 8,000 Remuneration payable for the management of discretionary
Premises rental 61,068 58,923 investment portfolio 8,109 6,934
Dividend paid 225,000 - Remuneration payable to trustee 1,421 1,192
Rental income 2,988 3,000
Key management personnel
Associated undertakings Short term loans (as per policy) 8,050 3,732
Premium / contribution written 88,626 75,305
Claims expense 64,170 39,127 Staff retirement benefit plan (gratuity fund)
Commission and other incentives in respect of bancassurance 1,263,006 1,260,926 Receivable / (payable) to gratuity fund 11,791 (4,866)
Profit on bank deposits 500,849 204,342
Bank charges 11,376 4,857 40 REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES
Investments purchased 5,072,313 27,043,133
Investments sold 8,103,196 27,788,397 Chief Executive Directors Executives
Dividend income 166,817 233,923 2023 2022 2023 2022 2023 2022
Others 8,100 -
-------------------------------------------- (Rupees in ‘000) --------------------------------------------
Other related parties Fee - - 1,135 305 - -
Premium / contribution written 315,124 262,960 Managerial remuneration 19,026 11,531 - - 271,796 234,226
Claims expense 165,498 150,122 Compensated absence 1,407 - - - 16,167 11,640
Investment advisor fee 37,436 39,576 Bonus 5,405 - - - 53,615 42,382
Trustee fee 9,651 9,173 Rent and house maintenance 7,610 4,612 - - 108,718 93,690
Dividend paid 12,866 - Utilities 1,903 1,153 - - 27,180 23,423
Medical 300 181 - - 19,717 18,269
Directors Conveyance, other allowances
Fee 1,135 305 and benefits 420 480 - - 101,167 74,728
36,071 17,957 1,135 305 598,360 498,358
Key management personnel
Remuneration 194,378 175,564 Number of persons 1 2 7 7 226 172
Loan issued 11,400 1,093
Recoveries against advances to key management personnels (3,350) -
40.1 Cars provided to entitled executives are for private and official use.
Staff retirement benefit plan (gratuity fund)
Charge for the year - OCI (9,356) (2,272)
Charge for the year 45,699 42,824

Balances outstanding as at the end of the year

Holding company
Claims and other payable - 3,000
Other (payable) / receivable 4 6

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 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

41. SEGMENTAL INFORMATION Revenue account by statutory fund

For the year ended December 31, 2022
41.1 Revenue account by statutory fund
For the year ended December 31, 2023
Statutory Funds Statutory Funds

Accident and Non-unitised Unit Individual Family Group Family Accident and Non-unitised Unit Individual Family Group Family
Conventional Health Investment Link Linked Takaful Unit Takaful Total
Conventional Health Investment Link Linked Takaful Unit Takaful Total
Business Business Linked
Business Business Business Linked
Business
Business Business Business Business
Business
Business

Income ------------------------------------------------------------------ (Rupees in ‘000) ------------------------------------------------------------------ Income -------------------------------------------------------------------- (Rupees in ‘000) --------------------------------------------------------------------

Premiums / contributions less reinsurances / re-takaful 309,402 2,522 55,833 18,439,000 3,791,638 87,264 22,685,659 Premiums / contribution less reinsurances / re-takaful 251,626 599 70,942 15,925,356 3,974,692 92,237 20,315,452
Rental income from investment property - - - 2,988 - - 2,988 Rental income from investment property - - - 3,000 - 3,000
Net investment income 104,131 - 384,152 14,600,409 2,372,840 32,315 17,493,847 Net investment income 37,553 - 287,257 2,683,197 462,065 6,301 3,476,373
Total net income 413,533 2,522 439,985 33,042,397 6,164,478 119,579 40,182,494 Total net income 289,179 599 358,199 18,611,553 4,436,757 98,538 23,794,825

Insurance / takaful benefits and expenditures Insurance benefits and expenditures

Insurance benefits including bonus net of reinsurance / retakaful (151,607) - (674,904) (16,486,731) (1,627,269) (56,492) (18,997,003) Insurance benefits including bonus net
Management expenses less recoveries (73,418) (972) (10,409) (3,157,189) (976,520) (12,790) (4,231,298) of reinsurance / retakaful (137,613) - (702,102) (12,090,131) (1,273,837) (30,753) (14,234,436)
Total insurance / takaful benefits and expenditures (225,025) (972) (685,313) (19,643,920) (2,603,789) (69,282) (23,228,301) Management expenses less recoveries (58,991) (254) (4,256) (2,819,031) (1,125,653) (10,962) (4,019,147)
Total insurance / takaful benefits and expenditures (196,604) (254) (706,358) (14,909,162) (2,399,490) (41,715) (18,253,583)
Excess of income over insurance / takaful benefits and Excess / (deficit) of income over insurance / takaful
expenditures 188,508 1,550 (245,328) 13,398,477 3,560,689 50,297 16,954,193 benefits and expenditures 92,575 345 (348,159) 3,702,391 2,037,267 56,823 5,541,242

Add: Policyholders’ liabilities at beginning of the year 184,544 363 1,624,485 50,023,081 8,385,691 68,000 60,286,164 Net change in insurance / takaful liabilities
Less: Policyholders’ liabilities at end of the year 261,143 1,324 1,315,617 62,792,011 11,702,085 110,754 76,182,934 (other than outstanding claims) (44,795) (105) 414,581 (3,396,978) (1,855,804) (54,204) (4,937,305)
Net change in insurance / takaful liabilities (other than Surplus before tax 47,780 240 66,422 305,413 181,463 2,619 603,937
outstanding claims) (76,599) (961) 308,868 (12,768,930) (3,316,394) (42,754) (15,896,770) Movement in policyholders’ liabilities 44,795 105 (414,581) 3,396,978 1,855,804 54,204 4,937,305
Surplus before tax 111,909 589 63,540 629,547 244,295 7,543 1,057,423 Capital contribution (to) / from shareholders’ fund - - - - (159,501) 25,630 (133,871)
Surplus appropriated to shareholders’ fund - - (150,000) (125,000) - - (275,000)
Movement in policyholders’ liabilities 76,599 961 (308,868) 12,768,930 3,316,394 42,754 15,896,770 Balance of statutory funds at beginning of the year 270,964 977 2,211,225 47,392,197 6,774,571 28,021 56,677,955
Surplus appropriated to shareholders’ fund - - (90,000) (310,000) (100,000) - (500,000) Balance of statutory funds at end of the year 363,539 1,322 1,713,066 50,969,588 8,652,337 110,474 61,810,326
Balance of statutory funds at beginning of the year 363,539 1,322 1,713,066 50,969,571 8,652,237 110,574 61,810,309
Represented by:
Balance of statutory funds at end of the year 552,047 2,872 1,377,738 64,058,048 12,112,926 160,871 78,264,502
Capital contribution by shareholders fund 327,514 1,511 - - - 35,630 364,655
Represented by: Qard-e-Hasna from Window Takaful Operator to PTF - - - - (22,500) - (22,500)
Capital contribution by shareholders fund 327,515 1,511 - - - 35,630 364,656 Qard-e-Hasna received by PTF - - - - 22,500 - 22,500
Surplus appropriated to shareholders’ fund - - (90,000) (310,000) (100,000) - (500,000) Policyholders’ liabilities 184,544 363 1,624,485 50,023,081 8,274,216 35,512 60,142,201
Policyholders’ liabilities 261,143 1,324 1,315,617 62,792,011 11,537,615 20,971 75,928,681 Surplus appropriated to shareholder’s fund - - (150,000) (125,000) - - (275,000)
(Deficit) / retained earning on other than participating business (36,611) 37 152,121 1,576,037 675,311 104,270 2,471,165 (Deficit) / retained earning on other than participating business (148,519) (552) 238,581 1,071,507 378,121 39,332 1,578,470
Balance of statutory funds 363,539 1,322 1,713,066 50,969,588 8,652,337 110,474 61,810,326
Balance of statutory funds 552,047 2,872 1,377,738 64,058,048 12,112,926 160,871 78,264,502

During the year, the Company has trasferred Rs. 500 million from statutory fund to shareholders’ fund, after taking the advice from the appointed actuary of the Company. During the year, the Company has trasferred Rs. 275 million from statutory fund to shareholders’ fund, after taking the advice from the appointed actuary of the Company.

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Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

41.2
Segmental statement of financial position
As at December 31, 2023 As at December 31, 2022
Statutory Shareholders’ Statutory Shareholders’
Total Total
Funds Fund Funds Fund
------------------- (Rupees in ‘000) ------------------- ------------------- (Rupees in ‘000) -------------------
Property and equipment - 220,156 220,156 Property and equipment - 215,532 215,532
Intangible assets - 25,906 25,906 Intangible assets - 26,579 26,579
Right of use asset - 72,504 72,502 Right of use asset - 124,420 124,420
Investment property 1,065,394 - 1,065,394 Investment property 943,669 - 943,669
Investments Investments
Equity securities 8,556,762 - 8,556,762 Equity securities 8,280,594 11,575 8,292,169
Government securities 58,521,485 2,844,198 61,365,683 Government securities 36,395,920 1,534,318 37,930,238
Debt securities 3,629,033 - 3,629,033 Debt securities 4,254,845 - 4,254,845
Term deposits 75,000 - 75,000 Term deposits 2,276,000 - 2,276,000
Mutual funds 4,981,341 - 4,981,341 Mutual funds 7,413,610 603,692 8,017,302
Loan secured against life insurance / takaful policies 35,975 - 35,975 Loan secured against life insurance / takaful policies 42,163 - 42,163
(Insurance / takaful) / (reinsurance / retakaful) receivables 94,143 - 94,143 (Insurance / takaful) / (reinsurance / retakaful) receivables 62,456 - 62,456
Deferred tax asset - 13,177 13,177 Deferred tax asset - 6,811 6,811
Other loans and receivables 1,242,250 136,808 1,379,058 Other loans and receivables 672,848 105,475 778,323
Taxation - payment less provision 992,572 - 992,572 Taxation - payment less provision 966,224 - 966,224
Prepayments 7,642 47,527 55,169 Prepayments 3,337 38,318 41,655
Cash and bank 3,452,046 474,550 3,926,596 Cash and bank 4,804,286 512,711 5,316,997
Total assets 82,653,643 3,834,826 86,488,467 Total assets 66,115,952 3,179,431 69,295,383

Insurance / takaful liabilities 79,559,988 - 79,559,988 Insurance / takaful liabilities 63,408,661 - 63,408,661
Taxation - payment less provision - 385,622 385,622 Retirement benefit obligations - 4,866 4,866
Deferred tax liability 670,473 - 670,473 Taxation - payment less provision - 122,518 122,518
Lease liabilities - 103,455 103,455 Deferred tax liability 383,455 - 383,455
Premium / contribution received in advance 246,282 - 246,282 Lease liabilities - 159,592 159,592
(Insurance / takaful) / (reinsurance / retakaful) payables 102,148 - 102,148 Premium / contribution received in advance 367,165 - 367,165
Unclaimed dividend - 39 39 (Insurance / takaful) / (reinsurance / retakaful) payables 175,083 - 175,083
Other creditors and accruals 663,157 339,735 1,002,892 Other creditors and accruals 640,379 285,374 925,753
Total liabilities 81,242,048 828,851 82,070,899 Total liabilities 64,974,743 572,350 65,547,093

174 175
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

41.3
Segmental results by line of business Segmental results by line of business
For the year ended December 31, 2023 For the year ended December 31, 2022 As at December 31, 2022

Individual life Other lines of Statutory Shareholders’
Total Total
distributed business Funds Fund
------------------- (Rupees in ‘000) ------------------- ------------------- (Rupees in ‘000) -------------------
Income Income

Gross premiums / contributions Gross premiums / contributions
- First year individual regular premium / contribution 2,242,554 623,161 2,865,715 - First year individual regular premiums / contributions 2,294,968 785,943 3,080,911
- Individual renewal premiums / contributions 9,292,556 1,054,970 10,347,526 - Individual renewal premiums / contributions 8,977,832 828,719 9,806,551
- Individual single premiums / contributions 9,196,144 91,670 9,287,814 - Individual single premiums / contributions 7,291,731 47,851 7,339,582
- Group premiums / contributions - 849,773 849,773 - Group premiums / contributions - 721,757 721,757
Total gross premiums / contributions 20,731,254 2,619,574 23,350,828 Total gross premiums / contributions 18,564,531 2,384,270 20,948,801

Reinsurance / retakaful premiums / contributions Reinsurance / retakaful premiums / contributions
- Individual (206,625) (38,551) (245,176) - Individual (215,289) (38,549) (253,838)
- Group - (419,993) (419,993) - Group - (379,511) (379,511)
Total reinsurance / retakaful premiums / contributions (206,625) (458,544) (665,169) Total reinsurance / retakaful premiums / contributions (215,289) (418,060) (633,349)

Net premium revenue / contributions 20,524,629 2,161,030 22,685,659 Net premium revenue / contributions 18,349,242 1,966,210 20,315,452

Rental income from investment property - 2,988 2,988 Rental income from investment property 3,000 - 3,000
Net investment income 16,353,230 1,140,617 17,493,847 Net investment income 3,351,892 124,481 3,476,373

Total net income 36,877,859 3,304,635 40,182,494 Total net income 21,704,134 2,090,691 23,794,825

Insurance / tataful benefits and expenditures Insurance / takaful benefits and expenditures

Insurance benefits net of reinsurance / retakaful (18,294,826) (702,177) (18,997,003) Insurance / takaful benefits net of reinsurance (13,676,433) (558,003) (14,234,436)
Management expenses less recoveries (2,052,681) (2,178,617) (4,231,298) Management expenses less recoveries (2,796,447) (1,222,700) (4,019,147)

Total insurance / takaful benefits and expenditures (20,347,507) (2,880,794) (23,228,301) Total insurance / takaful benefits and expenditures (16,472,880) (1,780,703) (18,253,583)

Excess of income over insurance / Excess of income over insurance /
takaful benefits and expenditures 16,530,352 423,841 16,954,193 takaful benefits and expenditures 5,231,254 309,988 5,541,242

Add: policyholders’ liabilities at beginning of year 57,338,943 2,947,221 60,286,164 Add: policyholders’ liabilities at beginning of year 53,137,308 2,211,551 55,348,859
Less: policyholders’ liabilities at end of year (71,751,636) (4,431,298) (76,182,934) Less: policyholders’ liabilities at end of year (57,338,943) (2,947,221) (60,286,164)

Surplus / (deficit) for the year 2,117,659 (1,060,236) 1,057,423 Surplus / (deficit) for the year 1,029,619 (425,682) 603,937

176 177
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

42. MOVEMENT IN INVESTMENTS 43.1.3 Other price risk

Fair value
Held to Available Investment
through Total Other price risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of chang-
maturity for sale property
profit or loss es in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused
----------------------------- (Rupees in ‘000) ----------------------------- by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments
traded in the market.
As at January 1, 2022 7,580,000 118,060 41,980,087 939,394 50,617,541
43.1.4 Equity price risk
Additions 78,446,000 - 649,191,918 - 727,637,918
The Company’s listed securities are susceptible to market price risk arising from uncertainties about the future value of
Disposals (sale and redemptions) (83,750,000) (98,414) (630,084,239) - (713,932,653)
investment securities. The Company limits market risk by maintaining a diversified portfolio. In addition, the Company

Fair value net gains (excluding net realised gains / losses) - (7,256) (2,605,602) 4,275 (2,608,583)
actively monitors the key factors that affect stock market.

As at December 31, 2022 2,276,000 12,390 58,482,164 943,669 61,714,223 Sensitivity Analysis

As at January 1, 2023 2,276,000 12,390 58,482,164 943,669 61,714,223 In case of 1% increase / (decrease) in PSX 100 index as at December 31, 2023, with all other variables held constant,
the total comprehensive income would have been increase / (decrease) by Rs. 135.381 million (2022: Rs. 79.969 mil-
Additions 23,420,000 - 488,426,889 - 511,846,889 lion) as result of gain / (losses) on equity securities. The analysis in based on the assumption that the equity index had
increased / (decreased) by 1% with all other variables held constant and represents management’s best estimate of a
Disposals (sale and redemptions) (25,621,000) (12,390) (471,661,629) - (497,295,019)
reasonable possible shift in PSX 100 index, having regard to the historical volatility of the index.

Fair value net loss (excluding net realised gains / losses) - - 3,285,395 121,725 3,407,120

43.1.5 Interest Rate Risk
As at December 31, 2023 75,000 - 78,532,819 1,065,394 79,673,213
Interest rate sensitivity measures the degree with which a fixed-income asset price moves with changes in interest
rates. Interest rates and fixed-income asset prices are inversely correlated. More interest rate sensitivity means an as-
43. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES set’s price fluctuates more with a change in interest rates.

43.1 Financial risk management objectives and policies Debt securities held to maturity as accounted for at amortised cost and their carrying amounts are not sensitive to
changes in the levels of interest rates.
The Company is exposed to a variety of financial risks: market risk (comprising currency risk, interest rate risk, and
other price risk), liquidity risk and credit risk in relation to the financial statements on its statement of financial position. Management monitors the sensitivity of reported interest rate movements priodically by assessing the expected
The Company’s overall risk management seeks to minimize potential adverse effects on the Company’s financial per- changes in the different portfolios due to parallel movement of 100 basis points in all yield curves.
formance of such risk.
An increase in 100 basis points in interest yield would result in a loss of Rs. 192.07 million (2022: Rs. 150.19 million).
The Board of Directors has the overall responsibility for the establishment and oversight of the Company’s risk manage-
ment framework. There are Board Committees and Management Committees for developing risk management policies A decrease in 100 basis points in interest yield would result in a gain of Rs. 192.07 million (2022: Rs. 150.19 million).
and its monitoring.
43.1.6 Liquidity risk
43.1.1 Market risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabili-
Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices, ties that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the
whether those changes are caused by factors specific to the individual security, or its issuer, or factors affecting all se- Company could be required to pay its liabilities earlier than expected or it encounters difficulty in raising funds to meet
curities traded in the market. The Company is exposed to market risk with respect to its investments and with respect to commitments associated with financial liabilities as they fall due.
products other than unit linked products (where the investment risk is passed on to policyholders). The Company limits
market risk by maintaining a diversified portfolio and by continuously monitoring developments in government securities The Company is maintaining sufficient liquid assets both in the form of cash deposits and liquid securities to meet its
and equities. long term and short term cash requirements.

43.1.2 Foreign currency risk 43.1.7 Credit risk

Foreign currency risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of Credit risk is the risk which arises with the possibility that one party to a financial instrument will fail to discharge its
changes in foreign exchange rates. obligation and cause the other party to incur a financial loss.

The Company, at present is not materially exposed to currency risk as majority of the transactions are carried out in
Pakistan Rupees.

178 179
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

Concentration of credit risk arises when a number of counter parties have similar types of business activities. As a **Rating of issuers of TFCs and corporate sukuks performed by PACRA and VIS Credit Rating Company.
result, any change in economic, political or other conditions would affect their ability to meet contractual obligations in
a similar manner. Major credit risk arises in credit exposure to group life policyholders on account of premiums / contri- Investment in Government securities are not exposed to any credit risk.
bution due but unpaid and on bank balances.
The management monitors exposure to credit risk in premium / contribution receivable from group clients through
The management monitors exposure to credit risk through regular review of credit exposure and assessing credit wor- regular review of credit exposure and makes provision for doubtful premium / contribution receivable based on prudent
thiness of counter parties. estimates. All premium underwritten except group are recieved in advance therefore there is no credit risk on such
policies
The credit quality of the Company’s bank balances (including term deposits) can be assessed with reference to external
credit ratings as follows: 43.1.8 Reinsurance risk

Ratings of Banks* In ordr to minimise the financial exposer arising from large claims, the Company, in the normal course of business,
(Rupees in ’000) enters into agreement with the reinsurers.

A 1,226,300 1,233,284 Reinsurance ceded does not relieve the Company from its obligation to the policyholders and as a result, the Company
A- 5,346 2,791 remains liable for the portion of outstanding claims reinsured, to the extent that reinsurer fails to meet the obligation
A+ 36,559 1,978,533 under the reinsurance agreements.
AA 116,829 2,117,906
AA- 1,114,570 - In order to manage this risk, the Company obtains reinsurance cover only from companies with sound financial
AA+ 20,324 484,070 health.
AAA 1,471,865 1,766,472
3,991,793 7,583,056 43.1.9 Capital Management

*Rating of banks performed by PACRA and VIS Credit Rating Company. The Company goals and objectives when managing capital are:

The credit quality of Company’s exposure on TFCs and corporate sukuks can be assessed with reference to rating - To comply with the minimum paid-up capital requirements as prescribed by SECP;
issued by rating agency as follows:
- to safeguard the Company’s ability to continue as a going concern so that it can continue to provide returns to
Issuer of TFC’s / corporate sukuks ** Rating (Rupees in ’000) shareholders and benefit for the other stakeholders;

Askari Bank Limited VII - TFC AA 99,500 100,980 - to provide an adequate return to shareholders by pricing insurance contracts commensurately with the level of risk;
Askari Bank Limited VI - TFC AA- 100,000 100,000
Aspin Pharma Private Limited - Sukkuk A - 16,656 - maintain strong ratings and to protect the Company against unexpected events / losses; and
Bank Al Habib Limited - TFC AAA 952,300 998,000
Bank Alfalah Limited - TFC AAA 99,433 92,514 - to ensure a strong capital base so as to maintain investor, creditor and market confidence and to sustain future
Bank of Punjab Tier II - Pre IPO AA- - - development of business.
Dubai Islamic Bank - Sukuk AA- 22,132 -
Ghani Chemical Industries Limited TFC A 2,455 11,499 As prescribed by SECP, the Company is required to maintain the minimum capital and to comply with the solvency
Habib Bank Limited II - TFC AA+ 50,000 50,000 requirements both for shareholders’ and statutory funds in accordance with the Insurance Ordinance, 2000 and
Jahangir Siddiqui & Company Insurance Rules, 2017 (previously the SEC (Insurance) Rules, 2002 as amended by S.R.O. 16 (1)/2012 dated January
Limited - TFC AA+ - 51,216 9, 2012), with which the Company is in compliance.
Meezan Bank Limited - Sukuk AAA 442,917 -
Meezan Bank Limited - Sukuk AAA 501,250 513,600 43.1.10 Interest rate risk exposure
Meezan Bank Limited - Sukuk AAA - 250,000
Pakistan Energy Sukuk II Non rated 575,173 574,999 Interest rate risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of
Samba Bank Limited - TFC AA- 423,953 424,107 changes in market interest rates. The Company invests in securities and has bank balances and deposits that are
The Bank of Punjab - TFC I AA 100,334 339,184 subject to interest / mark-up rate risk. The Company limits interest / mark-up rate risk by monitoring changes in interest
The Bank of Punjab - TFC II AA 259,586 260,090 / mark-up rates in the currencies in which its cash and investments are denominated.

3,629,033 3,782,845

180 181
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

The information about Company’s exposure to interest rate risk based on contractual repricing or maturity dates as of The Company manages these risks through its underwriting, reinsurance, claims handling policy and other related
December 31, 2023, whichever is earlier, is as follows: controls. The Company has a well defined medical underwriting policy and avoids selling policies to high risk individuals.
This puts a check on anti selection. The need for profit testing is reviewed on an annual basis to ensure reasonableness
2023 of premiums charged. Reinsurance contracts have been purchased by the Company to limit the maximum exposure
Interest / markup bearing Non interest / non markup bearing
on any one insured person. The Company is developing and intends to eventually have a good spread of business
Maturity up to Maturity after Maturity up to Maturity after Total
1 Year 1 Year
Sub Total
1 Year 1 Year
Sub Total throughout the country thereby ensuring diversification of geographical risks. To avoid poor persistency the Company
On balance sheet financial instruments ------------------------------------------------------------------ (Rupees in ‘000) ------------------------------------------------------------------ applies quality controls on the standard of service provided to policyholders and has placed checks to control mis-
selling and to track improvements in the standard of service provided to policyholders. For this, a regular monitoring
Assets of lapsation rates is conducted. On the claims handling side, the Company has procedures in place to ensure that
payment of any fraudulent claims is avoided. For this, claims committee with variable materiality limits review all claims
Investments 58,248,717 6,820,999 65,069,716 13,538,103 - 13,538,103 78,607,819 for verification and specific and detailed investigation of all apparently doubtful claims (particularly of high amounts) is
Loan secured against life insurance / takaful policies 35,975 - 35,975 - - - 35,975
(Insurance / takaful) / (reinsurance / retakaful) receivables - - - 94,143 - 94,143 94,143
conducted. Further, all payments on account of claims are made after necessary approval of relevant authority as per
Loans and other receivables - - - 1,361,720 - 1,361,720 1,361,720 policy of the Company. The Company maintains adequate liquidity in its fund to cater for a potentially sudden and high
Cash and bank 3,689,030 - 3,689,030 237,566 - 237,566 3,926,596 cash requirement.
61,973,722 6,820,999 68,794,721 15,231,532 - 15,231,532 84,026,253
Frequency and severity of claims
Liabilities
Lease liabilities 71,514 31,941 103,455 - - - 103,455

(Insurance / takaful) / (reinsurance / retakaful) payables - - - 102,148 - 102,148 102,148 The Company measures concentration of risk by geographical area. Concentration of risk is not currently a factor
Other creditors and accruals - - - 985,436 - 985,436 985,436 of concern as the business is developing and aims to achieve a spread of risks across various parts of the country.
71,514 31,941 103,455 1,087,584 - 1,087,584 1,191,039 However, undue concentration by amounts could have an impact on the severity of benefit payments on a portfolio
61,902,208 6,789,058 68,691,266 14,143,948 - 14,143,948 82,835,214 basis.

2022 The table below presents the concentration of insured benefits across five bands of insured benefits per individual life
Interest / markup bearing Non interest / non markup bearing
assured. The benefit insured figures are shown gross and net of the reinsurance contracts described above.
Maturity up to Maturity after Maturity up to Maturity after Total
1 Year 1 Year
Sub Total
1 Year 1 Year
Sub Total
-------------------------------------------------------------------- (Rupees in ‘000) --------------------------------------------------------------------
The amounts presented are showing total exposure of the Company including exposure in respect of riders attached to
On balance sheet financial instruments
the main policies.
Assets
Sum assured at the end of December 2023
Benefits assured per life Total benefits assured
Investments 42,750,996 1,710,089 44,461,085 16,309,471 - 16,309,471 60,770,556
Loan secured against life insurance / takaful policies 42,163 - 42,163 - - - 42,163 Rupees Before reinsurance After reinsurance
(Insurance / takaful) / (reinsurance / retakaful) receivables - - - 62,456 - 62,456 62,456
(Rupees in ‘000) Percentage (Rupees in ‘000) Percentage
Loans and other receivables - - - 734,343 - 734,343 734,343
Cash and bank 5,146,032 - 5,146,032 170,965 - 170,965 5,316,997
47,939,191 1,710,089 49,649,280 17,277,235 - 17,277,235 66,926,515

0 - 200,000 941 2% 585 1.45%
Liabilities 200,000 - 400,000 2,320 4% 1,437 3.57%
Lease liabilities 63,337 96,255 159,592 - - - 159,592 400,001 - 800,000 9,550 18% 6,672 16.58%
(Insurance / takaful) / (reinsurance / retakaful) payables - - - 175,083 - 175,083 175,083 800,001 - 1,000,000 22,453 43% 22,136 55.02%
Other creditors and accruals - - - 887,044 - 887,044 887,044
More than 1,000,000 17,373 33% 9,406 23.38%
63,337 96,255 159,592 1,062,127 - 1,062,127 1,221,719
47,875,854 1,613,834 49,489,688 16,215,108 - 16,215,108 65,704,796
Total 52,637 40,236

44. INSURANCE RISK AND MANAGEMENT OF INSURANCE RISK Sum assured at the end of December 2022
Benefits assured per life Total benefits assured
44.1 Conventional business Rupees Before reinsurance After reinsurance

(Rupees in ‘000) Percentage (Rupees in ‘000) Percentage
44.1.1 Individual Life

The risk underwritten is mainly death and sometimes disability. The risk of death and disability will vary in degree by 0 - 200,000 790 2.69% 454 3.34%
age, gender, occupation, income group and geographical location of the assured person. The Company’s exposure to 200,000 - 400,000 2,916 9.94% 1,441 10.59%
poor risks may lead to unexpectedly high severity and frequency in claims’ experience. This can be a result of anti- 400,001 - 800,000 4,879 16.63% 2,121 15.58%
selection, fraudulent claims, a catastrophe or poor persistency. The Company may also face the risk of poor investment 800,001 - 1,000,000 1,527 5.21% 1,158 8.51%
return, inflation of business expenses and liquidity issues on amount invested in the fund. The Company faces the risk More than 1,000,000 19,219 65.52% 8,437 61.99%
of under-pricing particularly due to the fact that majority of these contracts are long term. Additionally, the risk of poor Total 29,331 13,611
persistency may result in the Company being unable to recover expenses incurred at policy acquisition.

182 183
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

a) Sources of uncertainty in the estimation of future benefit payments and premium receipts The Company manages these risks through underwriting, reinsurance, effective claims handling and other related controls.
The Company has a well defined medical under writing policy and avoids writing business for groups with overly hazardous
Uncertainty in the estimation of future benefit payments and premium receipts for long term conventional assurance exposure. Pricing is done in line with the actual experience of the Company. The premium charged takes into account the
contracts arises from the unpredictability of long term changes in overall levels of mortality and morbidity incidence actual experience of the client and the nature of mortality exposure the group faces. The management undertakes to write
rates. business in line with the limits set by the appointed actuary, especially for large groups having a group assurance policy
with annual premium of Rs. 2 million or above in accordance with the requirements of Circular 11 of 2013 dated June
b) Factors impacting future benefit payments and premium receipts are as follows: 14, 2013. The Company also maintains a Management Information System (MIS) to track the adequacy of the premium
charged. reinsurance contracts have been purchased by the Company to limit the maximum exposure to any one life.
The Company assumes the expected mortality to be 80% of SLIC (2001-05). Morbidity incidence rates are taken
as a percentage of reinsurer’s risk premium rate. The Company ensures writing business with good geographical spread and tries to maintain a controlled exposure
to large groups which generally have poor experience. Writing business of known hazardous groups is also avoided.
Persistency: The Company exercises a periodic analysis on recent and historic experience and persistency is On the claims handling side, the Company ensures that payment of any fraudulent claims is avoided. For this, Claims
calculated by applying statistical methods. Persistency rates vary by products and more importantly the sales Committee with variable materiality limits review all claims for verification and specific and detailed investigation of all
distribution channel. An allowance is then made for any trend in the data to arrive at best estimate of future apparently doubtful claims (particularly of high amounts) is conducted. Strict monitoring is in place at the Board of
persistency rates for each sales distribution channel. Directors level in order to keep the outstanding balances of premium at a minimum, especially the ones that are due for
more than 90 days. The bulk of the assets held against liabilities of this line of business are cash to money market with
c) Process used to decide on assumptions short durations and high liquidity, thus mitigating the risk of asset value deterioration and liability mismatch.

For long term conventional assurance contracts, long-term assumptions are made at the inception of the contract. a) Frequency and severity of claims
Keeping the statutory minimum reserving basis in view, the Company determines assumptions on future mortality,
morbidity, persistency, administrative expenses and investment returns. At regular intervals, profit testing is The Company measures concentration of risk by geographical area. Concentration of risk is not currently a factor
conducted on main policies. Assumptions used for profit testing of the main policies are as follows: of concern as the business is developing and aims to achieve a spread of risks across various parts of the country.

- Mortality: The Company assumes the expected mortality to be 80% of SLIC (2001-05). The table below presents the concentration of insured benefits across five bands of insured benefits per individual
life assured. The benefit insured figures are shown gross and net of the reinsurance contracts described above.
- Persistency: The Company exercises a periodic analysis on recent and historic experience and persistency is
calculated by applying statistical methods. Persistency rates vary by products and more importantly the sales The amounts presented are showing total exposure of the Company including exposure in respect of riders
distribution channel. An allowance is then made for any trend in the data to arrive at best estimate of future attached to the main policies.
persistency rates for each sales distribution channel.
Sum assured at the end of December 2023
- Expense levels and inflation: A periodic study is conducted on the Company’s current business expenses and Benefits assured per life Total benefits assured
future projections to calculate per policy expenses. Expense inflation is assumed in line with assumed investment Rupees Before reinsurance After reinsurance
return.
(Rupees in ‘000) Percentage (Rupees in ‘000) Percentage

-
Investment returns: The investment returns are based on the historic performance of the assets and asset types
underlying the fund. 0-500,000 46,344,579 5.871% 46,222,997 16.152%
500,001 - 1,000,000 223,045,075 28.256% 137,029,070 47.884%
d) Changes in assumptions 1,000,001 - 1,500,000 30,209,718 3.827% 18,687,836 6.530%
1,500,001 - 2,000,000 71,643,947 9.076% 30,445,500 10.639%
There are no changes in assumptions. More than 2,000,000 418,136,695 52.970% 53,784,000 18.794%
Total 789,380,014 286,169,403
e) Sensitivity analysis

After reinsurance, the overall liability for individual life conventional business stands at less than 1% of the total Sum assured at the end of December 2022
Benefits assured per life Total benefits assured
policyholder liability held in respect of individual life business. Due to its immateriality, sensitivity analysis has not
been conducted. Rupees Before reinsurance After reinsurance

(Rupees in ‘000) Percentage (Rupees in ‘000) Percentage

44.1.2 Group Life

The main risk written by the Company is mortality. The Company may be exposed to the risk of unexpected claim 0 - 500,000 75,658,064 15.832% 75,354,280 40.210%
severity or frequency. This can be a result of writing business with higher than expected mortality (such as mining 500,001 - 1,000,000 46,644,860 9.761% 36,733,976 19.602%
or other hazardous industries), writing high cover amounts without adequate underwriting, difficulty of verification of 1,000,001 - 1,500,000 53,405,535 11.176% 30,133,400 16.079%
claims, fraudulent claims or a catastrophe. The Company also faces risk such as that of under pricing to acquire 1,500,001 - 2,000,000 35,520,803 7.433% 12,722,000 6.789%
business in a competitive environment and of non receipt of premium in due time. There also exists a potential risk of More than 2,000,000 266,639,267 55.798% 32,460,000 17.321%
asset liability term mismatch due to liabilities being very short term in nature. Total 477,868,529 187,403,656

184 185
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

b) Sources of uncertainty in the estimation of future benefit payments and premium receipts a) Frequency and severity of claims

Other than conducting a liability adequacy for Unexpired Risk Reserves (URR), there is no need to estimate The Company measures concentration of risk by geographical area. Concentration of risk is not currently a factor
mortality for future years because of the short duration of the contracts. of concern as the business is developing and aims to achieve a spread of risks across various parts of the country.

c) Process used to decide on assumptions However, undue concentration by amounts could have an impact on the severity of benefit payments on a portfolio
basis.
Industry experience, the insured group’s own past experience and reinsurer risk rates are used to determine the
expected level of risk in relation to the SLIC (2001-05) Individual Life Ultimate Mortality Table. The Company charges for mortality risk on a monthly basis for all insurance contracts. It has the right to alter
these charges based on its mortality experience and hence minimises its exposure to mortality risk. Delays in
d) Changes in assumptions implementing increases in charges and market or regulatory restraints over the extent of the increases may
hinder its mitigating effect. The Company manages these risks through its underwriting strategy and reinsurance
There are no changes in assumptions. arrangements.

e) Sensitivity analysis The table below presents the concentration of insured benefits across five bands of insured benefits per individual
life assured. The benefit insured figures are shown gross and net of the reinsurance contracts described above.
The table below shows the level of respective variation in liabilities for change in each assumption while holding
all other assumptions constant. The amounts presented are showing total exposure of the Company including exposure in respect of riders
attached to the main policies.
Variables Change in Increase in liability
Variable 2023 Sum assured at the end of December 2023
Benefits assured per life
(Rupees in ‘000) Total benefits assured
Worsening of mortality rates for risk policies +10% pa 4,184 Rupees Before reinsurance After reinsurance
Increase in reporting lag +10% pa 4,184
(Rupees in ‘000) Percentage (Rupees in ‘000) Percentage

44.2
Non unitised Investment Linked Business
0 - 200,000 26,503 6.63% 8,086 6.85%
The risk underwritten is mainly death and sometimes disability and/or critical illness. The risk of death and disability 200,000 - 400,000 91,188 22.79% 28,767 24.36%
will vary in degree by age, gender, occupation, income group and geographical location of the insured person. The 400,001 - 800,000 133,630 33.40% 41,614 35.24%
Company’s exposure to poor risks may lead to unexpectedly high severity and frequency in claims’ experience. This 800,001 - 1,000,000 82,676 20.67% 27,034 22.89%
can be a result of anti selection, fraudulent claims, a catastrophe or poor persistency. The Company may also face the More than 1,000,000 66,044 16.51% 12,586 10.66%
risk of poor investment return, inflation of business expenses and liquidity issues on monies invested in the fund. The Total 400,041 118,087
Company faces the risk of under-pricing particularly due to the fact that these contracts are long term. Additionally, the
risk of poor persistency may result in the Company being unable to recover expenses incurred at policy acquisition.
Sum assured at the end of December 2022
Benefits assured per life Total benefits assured
The Company manages these risks through its underwriting, reinsurance, claims handling policy and other related
Rupees Before reinsurance After reinsurance
controls. The Company has a well defined medical underwriting policy and avoids selling policies to high risk individuals.
This puts a check on anti selection. The need for profit testing is reviewed on an annual basis to ensure reasonableness (Rupees in ‘000) Percentage (Rupees in ‘000) Percentage
of premiums charged. Reinsurance contracts have been purchased by the Company to limit the maximum exposure
on any one insured person. The Company is developing and intends to eventually have a good spread of business
0 - 200,000 30,603 5.28% 9,492 5.47%
throughout the country thereby ensuring diversification of geographical risks. To avoid poor persistency the Company
200,000 - 400,000 129,094 22.26% 40,539 23.35%
applies quality controls on the standard of service provided to policyholders and has placed checks to control mis selling
400,001 - 800,000 204,348 35.23% 63,319 36.47%
and to track improvements in the standard of service provided to policyholders. For this, a regular monitoring of lapsation
800,001 - 1,000,000 142,321 24.54% 44,642 25.71%
rates is conducted. On the claims handling side, the Company has procedures in place to ensure that payment of any
More than 1,000,000 73,644 12.70% 15,634 9.00%
fraudulent claims is avoided. For this, claims committee with variable materiality limits review all claims for verification
Total 580,010 173,626
and specific and detailed investigation of all apparently doubtful claims (particularly of high amounts) is conducted. The
Company maintains adequate liquidity in its fund to cater for a potentially sudden and high cash requirement. Further, all
payments on account of claims are made after necessary approval of relevant authority as per policy of the Company.
The Company reserves the right to review the charges deductible under the contracts, thus limiting the risk of under
pricing.

186 187
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

b) Sources of uncertainty in the estimation of future benefit payments and premium receipts diversification of geographical risks. To avoid poor persistency the Company applies quality controls on the standard of
service provided to policyholders and has placed checks to curb mis selling and improvement in standard of service
Uncertainty in the estimation of future benefit payments and premium receipts for long term non unitised investment provided to the policyholders. For this, a regular branch wise monitoring of lapsation rates is conducted. On the claims
linked assurance contracts arises from the unpredictability of long term changes in overall levels of mortality and handling side, the Company has procedures in place to ensure that payment of any fraudulent claims is avoided.
morbidity of the insured population and variability in policyholders’ behaviour. For this, claims committee with variable materiality limits review all claims for verification and specific and detailed
investigation of all apparently doubtful claims (particularly of high amounts) is conducted. The Company maintains
Factors impacting future benefit payments and premium receipts are as follows: adequate liquidity in each unit fund to cater for potentially sudden and high cash requirement. Further, all payments on
account of claims are made after necessary approval of relevant authority as per policy of the Company. The Company
- Mortality: The expected mortality is assumed to be 80% of SLIC (2001-05) reserves the right to review the charges deductible under the contracts, thus limiting the risk of under pricing.

- Persistency: The Company exercises a periodic analysis on recent and historic experience and persistency is Frequency and severity of claims
calculated by applying statistical methods. Persistency rates vary by products and more importantly the sales
distribution channel. An allowance is then made for any trend in the data to arrive at best estimate of future The Company measures concentration of risk by geographical area. Concentration of risk is not currently a factor of
persistency rates for each sales distribution channel. concern as the business is developing and aims to achieve a spread of risks across various parts of the country.

c) Process used to decide on assumptions However, undue concentration by amounts could have an impact on the severity of benefit payments on a portfolio basis.

For long term non unitised investment linked assurance contracts, assumptions are made in two stages. At The Company charges for mortality risk on a monthly basis for all insurance contracts. It has the right to alter these
inception of the contract, the Company determines assumptions on future mortality, morbidity, persistency, charges based on its mortality experience and hence minimises its exposure to mortality risk. Delays in implementing
administrative expenses and investment returns. At regular intervals, profit testing is conducted on main policies. increases in charges and market or regulatory restraints over the extent of the increases may hinder its mitigating effect.
Assumptions used for profit testing of the main policies are as follows: The Company manages these risks through its underwriting strategy and reinsurance arrangements.

- Mortality: The Company assumes the expected mortality to be 80% of SLIC (2001-05). The table below presents the concentration of insured benefits across five bands of insured benefits per individual life
assured. The benefit insured figures are shown gross and net of the reinsurance contracts described above.
- Persistency: The Company exercises a periodic analysis on recent and historic experience and persistency is
calculated by applying statistical methods. Persistency rates vary by products and more importantly the sales The amounts presented are showing total exposure of the Company including exposure in respect of riders attached to
distribution channel. An allowance is then made for any trend in the data to arrive at best estimate of future the main policies.
persistency rates for each sales distribution channel.
Sum assured at the end of December 2023
Benefits assured per life Total benefits assured
- Expense levels and inflation: A periodic study is conducted on the Company’s current business expenses and
Rupees Before reinsurance After reinsurance
future projections to calculate per policy expenses. Expense inflation is assumed in line with assumed investment
return. (Rupees in ‘000) Percentage (Rupees in ‘000) Percentage

- Investment returns: The investment returns are based on the historic performance of the assets and asset types
0 - 200,000 2,317,075 2.35% 1,971,637 3.18%
underlying the fund.
200,000 - 400,000 11,791,246 11.94% 10,420,589 16.81%

400,001 - 800,000 26,250,897 26.58% 22,937,297 37.00%
d) Changes in assumptions
800,001 - 1,000,000 23,886,107 24.19% 15,880,617 25.62%

More than 1,000,000 34,510,711 34.95% 10,780,327 17.39%
There are no changes in assumptions.
Total 98,756,036 61,990,467

44.3 Unit Linked Business

Sum assured at the end of December 2022
Benefits assured per life Total benefits assured
The risk underwritten is mainly death and sometimes disability and/or critical illness. The risk of death and disability
will vary from region to region. The Company may get exposed to poor risks due to unexpected experience in terms of Rupees Before reinsurance After reinsurance
claim severity or frequency. This can be a result of anti selection, fraudulent claims, a catastrophe or poor persistency. (Rupees in ‘000) Percentage (Rupees in ‘000) Percentage
The Company may also face the risk of poor investment return, inflation of business expenses and liquidity issues on
monies invested in the fund. The Company faces the risk of under pricing particularly due to the fact that these contracts
are long term. Additionally, the risk of poor persistency may result in the Company being unable to recover expenses 0 - 200,000 2,789,489 2.57% 2,323,055 3.56%
incurred at policy acquisition. 200,000 - 400,000 13,162,151 12.11% 11,214,890 17.19%
400,001 - 800,000 28,658,681 26.36% 23,927,076 36.67%
The Company manages these risks through its underwriting, reinsurance, claims handling policy and other related 800,001 - 1,000,000 26,599,896 24.47% 16,596,738 25.44%
controls. The Company has a well defined medical under writing policy and avoids selling policies to high risk individuals. More than 1,000,000 37,502,418 34.50% 11,181,010 17.14%
This puts a check on anti-selection. The need for profit testing is reviewed on an annual basis to ensure reasonableness Total 108,712,635 65,242,769
of premiums charged. Reinsurance contracts have been purchased by the Company to limit the maximum exposure
on any one policyholder. The Company has a good spread of business throughout the country thereby ensuring

188 189
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

a) Sources of uncertainty in the estimation of future benefit payments and premium receipts the maximum exposure on any one participant. The Company has a good spread of business throughout the country
thereby ensuring diversification of geographical risks. To avoid poor persistency, the Company applies quality controls on
Uncertainty in the estimation of future benefit payments and premium receipts for long term unit linked insurance the standard of service provided to Participants of the PTF and has placed checks to curb mis-selling and improvement
contracts arises from the unpredictability of long term changes in overall levels of mortality and variability in in the standard of customer service. For this, a regular branch wise monitoring of lapsation rates is conducted. On the
policyholder’s behaviour. claims handling side, the Company has procedures in place to ensure that payment of any fraudulent claims is avoided.
For this, a Claims Committee with variable materiality limits review all claims for verification and specific and detailed
b) Factors impacting future benefit payments and premium receipts are as follows: investigation of all apparently doubtful claims (particularly of high amounts) is conducted. The Company maintains
adequate liquidity in each unit fund to cater for potentially sudden and high cash requirement. Further, all payments on
Mortality: The expected mortality is assumed to be 80% of SLIC (2001-05) account of claims are made after necessary approval of relevant authority as per policy of the Company. The Company
reserves the right to review the Takaful Contributions deductible under the contracts, thus limiting the risk of under
Persistency: The Company exercises a periodic analysis on recent and historic experience and persistency is pricing.
calculated by applying statistical methods. Persistency rates vary by products and more importantly the sales
distribution channel. An allowance is then made for any trend in the data to arrive at best estimate of future Frequency and severity of claims
persistency rates for each sales distribution channel.
The Company measures concentration of risk by geographical area. Concentration of risk is not currently a factor of
c) Process used to decide on assumptions concern as the business is developing and aims to achieve a spread of risks across various parts of the country.

For long term unit linked insurance contracts, assumptions are made in two stages. At inception of the contract, However, undue concentration by amounts could have an impact on the severity of benefit payments on a portfolio basis.
the Company determines assumptions on future mortality, persistency, administrative expenses and investment
returns. At regular intervals, profit testing is conducted on main policies. Assumptions used for profit testing of the The Company charges for mortality risk on a monthly basis for all Takaful contracts. It has the right to alter these charges
main policies are as follows: based on its mortality experience and hence minimises its exposure to mortality risk. Delays in implementing increases
in charges and market or regulatory restraints over the extent of the increases may hinder its mitigating effect. The
Mortality: The Company assumes the expected mortality to be 80% of SLIC (2001-05) Company manages these risks through its underwriting strategy and retakaful arrangements.

Persistency: The Company exercises a periodic analysis on recent and historic experience and persistency is The table below presents the concentration of covered benefits across five bands of covered benefits per participant.
calculated by applying statistical methods. Persistency rates vary by products and more importantly the sales The benefit covered figures are shown gross and net of the retakaful contracts described above.
distribution channel. An allowance is then made for any trend in the data to arrive at best estimate of future
persistency rates for each sales distribution channel. The amounts presented are showing total exposure of the PTF including exposure in respect of riders attached to the
main policies.
Expense levels and inflation: As the business is new, estimates from business projections have been used. Once
established, a periodic study will be conducted on the Company’s current business expenses and future projections Sum assured at the end of December 2023
Benefits assured per life
to calculate per policy expenses. Expense inflation is assumed in line with assumed investment return. Total benefits assured
Rupees Before retakaful After retakaful
Investment returns: The investment returns are based on the historic performance of the assets and asset types
(Rupees in ‘000) Percentage (Rupees in ‘000) Percentage
underlying the fund.

d) Changes in assumptions 0 - 200,000 714,077 1.62% 710,393 2.66%
200,000 - 400,000 3,718,603 8.46% 3,705,750 13.89%
There are no changes in assumptions. 400,001 - 800,000 9,977,389 22.70% 9,575,599 35.90%
800,001 - 1,000,000 9,176,454 20.87% 6,662,523 24.98%
44.4 Individual Family Takaful Unit Linked Business More than 1,000,000 20,376,378 46.35% 6,022,015 22.57%
Total 43,962,901 26,676,280
The risk covered is mainly death and sometimes disability and / or critical illness. The risk of death and disability will
vary from region to region. The PTF may get exposed to poor risks due to unexpected experience in terms of claim
Sum assured at the end of December 2022
severity or frequency. This can be a result of anti-selection, fraudulent claims, a catastrophe or poor persistency. The Benefits assured per life Total benefits assured
PTF may also face the risk of poor investment return, and liquidity issues on monies invested in the fund. The PTF faces
Rupees Before retakaful After retakaful
the risk of inadequacy of the mortality charge (takaful contribution) particularly due to the fact that these contracts are
long term. Additionally, the risk of poor persistency can lead to an impact on the size of the PTF. A larger PTF may allow (Rupees in ‘000) Percentage (Rupees in ‘000) Percentage
for a greater degree of cross subsidisation of mortality risk, increasing the probability of convergence between actual
and expected mortality experience.
0 - 200,000 849,097 1.78% 843,954 2.82%

200,000 - 400,000 4,442,312 9.29% 4,420,663 14.80%
The Company manages these risks through its underwriting, retakaful, claims handling policy and other related controls.
400,001 - 800,000 11,608,845 24.27% 11,126,641 37.24%
The Company has a well defined medical under writing policy and avoids issuing cover to high risk individuals. This
800,001 - 1,000,000 10,724,837 22.42% 7,524,830 25.19%
puts a check on anti selection. The need for profit testing is reviewed on an annual basis to ensure reasonableness of
More than 1,000,000 20,202,554 42.24% 5,961,383 19.95%
contribution charged for risk underwritten by the PTF. Retakaful contracts have been purchased by the Company to limit
Total 47,827,645 29,877,471

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 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

a) Sources of uncertainty in the estimation of future benefit payments and contribution receipts Retakaful contracts have been purchased by the Company to limit the maximum mortality exposure of any one covered
person. The Company ensures writing business with good geographical spread and tries to maintain a controlled
Uncertainty in the estimation of future benefit payments and contribution receipts for long term unit linked takaful exposure to large groups which generally have poor experience. Writing business of known hazardous groups is also
contracts arises from the unpredictability of long term changes in overall levels of mortality and variability in avoided. On the claims handling side, the Company ensures that payment of any fraudulent claims is avoided. Strict
participant’s behaviour. monitoring is in place in order to keep the outstanding balances of contribution at a minimum, especially the ones
that are due for more than 90 days. The bulk of the assets held against liabilities of this line of business are cash to
b) Factors impacting future benefit payments and contribution receipts are as follows: money market with short durations and high liquidity, thus mitigating the risk of asset value deterioration and liability
mismatch.
Mortality: The expected mortality is assumed to be 80% of SLIC (2001-05).
Frequency and severity of claims
Persistency: The Company exercises a periodic analysis on recent and historic experience and persistency is
calculated by applying statistical methods. Persistency rates vary by products and more importantly the sales The Company measures concentration of risk by geographical area. Concentration of risk is not currently a factor of
distribution channel. An allowance is then made for any trend in the data to arrive at best estimate of future concern as the business is developing and aims to achieve a spread of risks across various parts of the country.
persistency rates for each sales distribution channel.
The table below presents the concentration of covered benefits across five bands of covered benefits per participant.
c) Process used to decide on assumptions The benefit covered figures are shown gross and net of the retakaful contracts described above.

For long term unit linked takaful contracts, assumptions are made in two stages. At inception of the contract, The amounts presented are showing total exposure of the PTF including exposure in respect of riders attached to the
the Company determines assumptions on future mortality, persistency, administrative expenses and investment main policies.
returns. At regular intervals, profit testing is conducted on main policies. Assumptions used for profit testing of the
main policies are as follows: Sum assured at the end of December 2023
Benefits covered per participant
Total benefits assured
Mortality: The Company assumes the expected mortality to be 80% of SLIC (2001-05) Rupees Before retakaful After retakaful

(Rupees in ‘000) Percentage (Rupees in ‘000) Percentage
Persistency: The Company exercises a periodic analysis on recent and historic experience and persistency is
calculated by applying statistical methods. Persistency rates vary by products and more importantly the sales
distribution channel. An allowance is then made for any trend in the data to arrive at best estimate of future 0 - 500,000 19,686,582 18.46% 16,610,106 29.14%
persistency rates for each sales distribution channel. 500,001 - 1,000,000 25,582,096 23.99% 18,939,497 33.22%
1,000,001 - 1,500,000 5,820,659 5.46% 2,958,381 5.19%
Expense levels and inflation: A periodic study is conducted on the Company’s current business expenses and 1,500,001 - 2,000,000 4,590,755 4.31% 2,014,673 3.53%
future projections to calculate per policy expenses. Expense inflation is assumed in line with assumed investment More than 2,000,000 50,941,012 47.78% 16,483,724 28.92%
return. Total 106,621,104 57,006,381

Investment returns: The investment returns are based on the historic performance of the assets and asset types
Sum assured at the end of December 2022
underlying the fund. Benefits covered per participant Total benefits assured

Rupees Before retakaful After retakaful
d) Changes in assumptions
(Rupees in ‘000) Percentage (Rupees in ‘000) Percentage
There are no changes in assumptions.

0 - 500,000 11,171,714 4.98% 11,171,714 7.01%
44.5 Group Life Family Takaful
500,001 - 1,000,000 172,549,086 76.86% 131,166,931 82.29%
1,000,001 - 1,500,000 2,430,528 1.08% 1,343,881 0.84%
The main exposure of the PTF is to mortality risk. The PTF may be exposed to the risk of unexpected claim severity
1,500,001 - 2,000,000 3,530,848 1.57% 1,611,635 1.01%
or frequency. This can be a result of writing business with higher than expected mortality, writing high cover amounts
More than 2,000,000 34,825,324 15.51% 14,105,197 8.85%
without adequate underwriting, difficulty of verification of claims, fraudulent claims or a catastrophe. The PTF also
Total 224,507,500 159,399,358
faces risk such as that of under-pricing to acquire business in a competitive environment and of non-receipt of takaful
contributions in due time. There also exists a potential risk of asset liability term mismatch due to liabilities being very
short term in nature.

The Company manages these risks through underwriting, retakaful, effective claims handling and other related controls.
The Company has a well defined medical under writing policy and avoids writing business for groups with overly
hazardous exposure. Pricing is done using the retakaful rates. The contribution charged takes into account the actual
experience of the client and the nature of mortality exposure the group faces. The rates are certified by the appointed
actuary for large groups. The Company also maintains an MIS to track the adequacy of the takaful contribution charged.

192 193
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

a) Sources of uncertainty in the estimation of future benefit payments and contribution receipts Policyholder Policyholder
liabilities on liabilities using
Other than conducting a liability adequacy for Unexpired Risk Reserves (URR), there is no need to estimate existing best estimate
mortality for future years because of the short duration of the contracts. Assumptions valuation basis assumptions
----------- (Rupees in ‘000) -----------
b) Process used to decide on assumptions
Mortality 75,462,877 75,390,873
The business is too new for any meaningful investigation into the group’s past experience. However, industry Investment Returns 75,462,877 75,442,869
experience, the insured group’s own past experience and retakaful risk rates are used to determine the expected
level of risk in relation to the SLIC (2001-05) Individual Life Ultimate Mortality Table. The liabilities evaluated under the assumptions suggest the recognised liabilities are adequate and no further provision
is required.
c) Changes in assumptions
45. FAIR VALUE MEASUREMENT
There are no changes in assumptions.
The table below analysis assets measured at the end of the reporting period by the level in the fair value hierarchy into
d) Sensitivity analysis which the fair value measurement is categorised.

The table below shows the level of respective variation in liabilities for change in each assumption while holding Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
all other assumptions constant. between market participants at the measurement date.

Variables Change in Increase in liability The Company measures fair values using the following fair value hierarchy that reflects the significance of the inputs
Variable 2023 used in making the measurements:
(Rupees in ‘000)
Worsening of mortality rates for risk policies +10% pa 1,325,640 Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities.
Increase in reporting lag +10% pa 1,325,640
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for
44.6 Liability Adequacy Test the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Liability adequacy test is applied to all long term contracts. Liability adequacy test is carried out using current best Level 3: Fair value measurements using inputs for the asset or liability that are not based on observable market data
estimates of assumptions and future net cash flows, including premiums receivable, benefits payable and investment (i.e. unobservable inputs).
income from related assets.

To determine the adequacy of liabilities, assumptions must be based on realistic best estimates. We have compared our
valuation mortality assumption (SLIC mortality table) with the mortality of developing Asian countries, namely: India and
Malaysia. The comparison suggests that the best estimate assumption is better than the experience reflected in SLIC
mortality table.

The investment return assumed for valuation is 3.75% per annum. This rate is prescribed by law. We have valued our
liabilities based on the 10 Year PIB rate of 14.375% to determine adequacy.

The table below compares total policyholder liabilities in Unit Linked Business, Non unitised Investment Linked Business,
Individual Life Conventional business and Individual Family Takaful Unit Linked Business under existing valuation basis
with policyholder liabilities calculated using best estimate assumptions:

194 195
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
For the year ended December 31, 2023 For the year ended December 31, 2023

December 31, 2023

Carrying value Fair value 46. Statement of Solvency
Fair value
Loans and Financial Individual
Available through
Receiv liabilities Total Level 1 Level 2 Level 3 Total Non unitised
for Sale profit Accident and Family Group Family
ables Particulars Shareholders’ Conventional Investment Unit Linked
or loss Health Takaful Unit Takaful
Fund Fund Link Business
Business Linked Business
----------------------------------------------------------- (Rupees in ‘000’) ----------------------------------------------------------- Business
Business
Financial assets measured at fair value ----------------------------------------------------- (Rupees in 000) -----------------------------------------------------

- Investments Assets
Government Securities
(T-bills + PIBs + Sukuks) - 61,365,683 - - 61,365,683 20,409,526 40,956,157 - 61,365,683 Property and equipment 296,412 - - - - - -
Equity securities - 8,556,762 - - 8,556,762 8,556,762 - - 8,556,762 Intangible assets 22,152 - - - - - -
Mutual funds - 4,981,341 - - 4,981,341 4,981,341 - - 4,981,341 Investment property - - - - 1,065,394 - -
Debt securities (listed TFCs / corporate sukuks) - 3,629,033 - - 3,629,033 3,629,033 - - 3,629,033 Investments

- 78,532,819 - - 78,532,819 37,576,662 40,956,157 - 78,532,819
Listed equity securities and units of mutual funds - - - - 11,626,269 1,911,836 -
Government securities 2,910,082 504,140 - 1,583,857 49,685,531 7,665,261 194,232
Non-financial assets measured at fair value Debt securities - - - 114,983 3,252,778 261,271 -
Term deposits - - - - - 75,000 -
- Investment property - 1,065,394 - - 1,065,394 - - 1,065,394 1,065,394 Loans secured against life insurance / Takaful policies - - - 5,519 30,456 - -
- 1,065,394 - - 1,065,394 - - 1,065,394 1,065,394 (Insurance / takaful) / (reinsurance / retakaful) receivables - 34,313 - 449 - - 15,688
Other loans and receivables 70,924 4,245 - 229 99,423 103,963 -
Financial assets not measured at fair value

Deferred taxation 13,177 - - - - - -
- Balances with banks - - 3,917,410 - 3,917,410 Taxation - payments less provision - 681 - 33,974 772,848 185,070 -
- Term deposit receipts - - 75,000 - 75,000 Prepayments 47,527 - - - - 7,642 -
- Investment in debt securities - - - - - Cash and Bank 474,550 207,266 2,872 34,642 869,853 2,305,385 32,028
- Other financial assets - - 1,491,838 - 1,491,838
- - 5,484,248 - 5,484,248 Total Assets (A) 3,834,824 750,645 2,872 1,773,653 67,402,552 12,515,428 241,948

Financial liabilities not measured at fair value

Inadmissible assets as per following clauses of section 32 (2) of Insurance Ordinance, 2000
- Other financial liabilities - - - 1,087,584 1,087,584
- 79,598,213 5,484,248 1,087,584 86,170,045 (b) Excess of prohibited limit - - - - - - (175)
(d) Loan to employees (21,159) - - - - (2,771) -
(h) Premiums more than 90 days - (2,733) (6)
December 31, 2022 (i) Intangible assets (22,152) - - - - - -
Carrying value Fair value (j) Deferred tax (13,177) - - - - - -
(u)Tangible fixed assets (223,910) - - - - - -
Fair value
Loans and Financial
Available through
Receiv liabilities Total Level 1 Level 2 Level 3 Total Total of inadmissible assets (B) (280,398) (2,733) - - - (2,771) (181)
for Sale profit
ables
or loss
Total admissible assets (C = A-B) 3,554,426 747,912 2,872 1,773,653 67,402,552 12,512,657 241,767
----------------------------------------------------------- (Rupees in ‘000’) -----------------------------------------------------------
Financial assets measured at fair value

Total liabilities
- Investments
Government securities Insurance / takaful liabilities net of reinsurance
(T-bills + PIBs + Sukuks) - 37,930,238 - - 37,930,238 - 37,930,238 - 37,930,238 / retakaful recoveries - 23,772 352,779 2,736,235 167,018 2,697
Equity securities 12,390 8,279,779 - - 8,292,169 8,292,169 - - 8,292,169 Retirement benefit obligations - - - - - -
Mutual funds - 8,017,302 - - 8,017,302 8,017,302 - - 8,017,302 Deferred taxation - - - - - -
Debt securities (listed TFCs / corporate sukuks) - 3,782,845 - - 3,782,845 3,782,845 - - 3,782,845

Liability against lease 103,455 - - - -
12,390 58,010,164 - - 58,022,554 20,092,316 37,930,238 - 58,022,554 Borrowings - - - - - -
Premium received in advance - 14,881 - 4,944 146,323 79,663 471
Non-financial assets measured at fair value (Insurance / takaful) / (reinsurance / retakaful)
payables - 148,746 - (5,618) 9,130 750
- Investment property - 943,669 - - 943,669 - - 943,669 943,669 Other creditors and accruals 339,735 11,199 - 38,190 467,561 146,195 77,159
- 943,669 - - 943,669 - - 943,669 943,669 Taxation - provision less payments 385,622 - - - - - -
Financial assets not measured at fair value
Total liabilities (D) 828,812 198,598 - 395,913 3,344,501 402,006 81,077
- Balances with banks - - 5,307,056 - 5,307,056
- Term deposit receipts - - 2,276,000 - 2,276,000 Total net admissible assets (E = C-D) 2,725,614 549,314 2,872 1,377,740 64,058,051 12,110,651 160,690
- Investment in debt securities - 472,000 - - 472,000
- Other financial assets - - 838,962 - 838,962 Minimum solvency requirement
- 472,000 8,422,018 - 8,894,018

Financial liabilities not measured at fair value
Shareholders’ fund (165,000) - - - - - -
Policyholders liability - (261,143) (1,324) (1,315,617) (62,792,011) (11,702,085) (110,754)
- Other Financial liabilities - - - 1,062,127 1,062,127 Solvency Margin - (107,678) (314) (35,276) (671,567) (133,728) (14,277)
12,390 59,425,833 8,422,018 1,062,127 68,922,368
Excess net admissible assets over
minimum requirements 2,560,614 180,493 1,234 26,847 594,473 274,838 35,659

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 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited

Notes to and forming part of the Financial Statements
STATEMENT OF THE APPOINTED ACTUARY
Statement of Appointed Actuary
For the year ended December 31, 2023

As per
As per Section 52(2) Section
(a) & 52(2) (a) &Ordinance
(b) of Insurance (b) of Insurance
2000 Ordinance 2000
47. CORRESPONDING FIGURES

47.1 Corresponding figures have been rearranged and reclassified, wherever necessary, for the purpose of better presentation In my opinion,
and comparison. The material reclassification has been made of Rs. 342 million which represents the expenses that are
reclassified from marketing and administration expenses to acquisition expenses.
(a) the policyholder liabilities included in the balance sheet of Adamjee Life Assurance
The details of reclassification are as follows:

Company Limited as at 31st December 2023 have been determined in accordance with
Marketing and the provisions of the Insurance Ordinance 2000;
Administration Acquisition
Expenses Expenses
Note 34 Note 33 (b) each statutory fund of Adamjee Life Assurance Company Limited complies with the
---------- (Rupees in ‘000) ---------- solvency requirements of the Insurance Ordinance 2000 as applicable on 31st December
Salaries and other benefits (209,859) 209,859
Travelling expenses (4,416) 4,416
2023.
Information technology expenses (4,778) 4,778
Printing and stationery (2,871) 2,871
Depreciation (7,172) 7,172
Depreciation - ROU Assets (7,437) 7,437
Rent, rates & taxes (10,295) 10,295
Insurance expense (279) 279 Signed Dated: 26th February 2024
Vehicle running expenses (46,568) 46,568
Postages, telegrams & telephone (2,925) 2,925 Name: Arif Rasool
Electricity, gas & water (5,159) 5,159 Fellow Pakistan Society of Actuaries
Office repairs & maintenance (9,793) 9,793
Entertainment (4,164) 4,164
Fellow Institute of Actuaries, UK
Training and development (9,057) 9,057
Advertisement & sales promotion (15,977) 15,977
Financial charges (2,650) 2,650
Miscellaneous 5,217 (5,217)
Legal and professional charges (4,608) 4,608

(342,791) 342,791

48. SUBSEQUENT EVENTS

The Board of directors in its meeting held on February 26, 2024 proposed a cash dividend of Rs. 1.00 per share (2022:
Rs. Nil per share) amounting to Rs. 250 million (2022: Rs. Nil) subject to approval of the members in the forthcoming
annual general meeting of the Company.

49. DATE OF AUTHORISATION FOR ISSUE

These financial statements were authorised for issue by the Board of Directors of the Company in their meeting held on
February 26, 2024.

Shahmeer Khalid Butt

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 Annual Report 2023 Annual Report 2023

Sharia Advisor Profile Statement of compliance with the Sharia Principle

YEAR ENDED DECEMBER 31, 2023

Dr. Mufti Muhammad

Zubair Usmani
Shariah Advisor

Dr. Muhammad Zubair Usmani is a qualified and one of various international journals. He has delivered
the most experienced Shariah Scholars in the Islamic research based lectures / presentations at different
Banking Industry. He did his Shariah graduation (Fazil national and international seminars, forums, and
Dars-e-Nizami) & Takhassus Fil Fiqh (Mufti i.e. conferences and has been associated with several
Specialization in Islamic Fiqh & Fatawa) from Jamia Dar financial institutions; he has also served as a member of
ul Uloom, Karachi. He has done Masters in International Shariah Board of State Bank of Pakistan. Currently he is
Relations and Doctorate (PhD) in Islamic Finance from associated with HBL as a Chairman Shariah Board,
University of Karachi. Dr. Zubair Usmani is author of MCB Arif Habib Islamic Fund as a Shariah Board
several books including related to Accounting & Auditing Member, Adamjee Life Assurance Company Ltd.
for Islamic Financial system, comparative study Window Takaful operations as a Shariah Advisor,
between Islam and Christianity and Ijarah (Islamic Askari Life as a Shariah Advisor, and Pak Qatar Asset
Leasing). His research papers have been published in Management as a Shariah Advisor.

200 201
 Annual Report 2023 Annual Report 2023

Independent Reasonable Assurance Report Independent Reasonable Assurance Report

to the Board of Directors on the Statement of to the Board of Directors on the Statement of
Compliance with the Shariah Principles Compliance with the Shariah Principles
We were engaged by the Board of Directors of Adamjee Life Assurance Company Limited (the Company) to report The procedures selected depend on our judgment, including the assessment of the risks of material
on the Statement of Compliance (the Statement) with the Shariah Principles of the Window Takaful Operations non-compliances with the Takaful Rules, 2012, whether due to fraud or error. In making those risk assessments, we
(Takaful Operations) of the Company, as set out in the annexed Statement prepared by management for the year have considered internal controls relevant to the Takaful Operations’ compliance with the Takaful Rules, 2012, in
ended December 31, 2023, with the Takaful Rules, 2012, in the form of an independent reasonable assurance order to design assurance procedures that are appropriate in the circumstances, but not for the purposes of
conclusion about whether the annexed Statement presents fairly the status of compliance of the operations with the expressing a conclusion as to the effectiveness of the Company's internal control over the Takaful Operations'
Takaful Rules, 2012, in all material respects. This engagement was conducted by a multidisciplinary team including compliance with the Takaful Rules, 2012. In performing our audit procedures necessary guidance on Shariah
assurance practitioners and independent Shariah Scholar. matters was provided by independent Shariah scholar. Reasonable assurance is less than absolute assurance.

Applicable Criteria A system of internal control, because of its nature, may not prevent or detect all instances of non-compliance with
Takaful Rules, 2012, and consequently cannot provide absolute assurance that the objective of compliance with
The criteria against which the subject matter information (the Statement) is assessed comprise of the provisions of Takaful Rules, 2012, will be met. Also, projection of any evaluation of effectiveness to future periods is subject to the
Takaful Rules, 2012, issued by the Securities and Exchange Commission of Pakistan (SECP). risk that the controls may become inadequate or fail.

Responsibilities of the Board of Directors / Management The procedures performed included:

The Board of Directors / management of the Company are responsible for designing, implementing and maintaining • Evaluating the systems, procedures and practices in place with respect to the Takaful operations against the
internal controls relevant to the preparation of the annexed Statement that is free from material misstatement, Takaful Rules, 2012 and Shariah Advisor's guidelines;
whether due to fraud or error. It also includes ensuring the overall compliance of the Takaful Operations with the
Takaful Rules, 2012. • Evaluating the governance arrangements including the reporting of events and status to those charged with
relevant responsibilities, such as the Audit Committee/ Shariah Advisor and the Board of Directors;
The Board of Directors / management of the Company are also responsible for preventing and detecting fraud and
for identifying and ensuring that the Takaful Operations comply with laws and regulations applicable to its activities. • Test for a sample of transactions relating to Takaful operations to ensure that these are carried out in
They are also responsible for ensuring that the management, where appropriate, those charged with governance, accordance with the laid down procedures and practices including the regulations relating to Takaful
and personnel involved with the Takaful Operations compliance with the Takaful Rules, 2012 are properly trained, operations as laid down in Takaful Rules, 2012; and
systems are properly updated and that any changes in reporting encompass all significant business units.
• Review the Statement of compliance with Shariah Principles of the Takaful transactions during the year ended
The management of the Company is responsible for preparation of the annexed Statement that is free from material December 31, 2023, with the Takaful Rules, 2012.
misstatement.
Conclusion
Our Independence and Quality Control
Our conclusion has been formed on the basis of, and is subject to, the matters outlined in this report. We believe that
We have complied with the independence and other ethical requirements of the Code of Ethics for Chartered the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
Accountants issued by the Institute of Chartered Accountants of Pakistan, which is founded on fundamental
principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior. In our opinion, the annexed Statement, for the year ended December 31, 2023, presents fairly the status of
compliance of the Takaful Operations with the Takaful Rules, 2012, in all material respects.
The firm applies International Standard on Quality Management 1 “Quality Management for Firms that Perform
Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements” and accordingly
maintains a comprehensive system of quality control including documented policies and procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Chartered Accountants
Our Responsibilities
Place: Karachi
Our responsibility is to independently verify the annexed Statement and to report thereon in the form of an Dated: April 01, 2024
independent reasonable assurance conclusion based on the evidence obtained. We conducted our engagement in
accordance with International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other
than Audits or Reviews of Historical Financial Information issued by the International Auditing and Assurance
Standards Board. That standard requires that we plan and perform our procedures to obtain reasonable assurance
about whether the annexed Statement presents fairly the status of compliance of the Takaful Operations with the
Takaful Rules, 2012, in all material respects.

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 Annual Report 2023 Annual Report 2023

Sharia Advisor’s Report to the Sharia Advisor’s Report to the

Board of Director Board of Director

204 205
 Annual Report 2023

INDEPENDENT AUDITORS’ REVIEW REPORT

To the Board of Directors of Adamjee Life Assurance Company Limited

Introduction

We have reviewed the accompanying statement of financial position of Adamjee Life Assurance Company Limited-
Window Takaful Operations (the WTO Operations) as of December 31, 2023 and the related statement of profit and
loss, statement of comprehensive income, statement of changes in equity and statement of cash flows for the year
then ended, and notes to the financial statements, including material accounting policy information and other
explanatory information to the financial statements (here-in-after referred to as the ‘financial statements’)
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
approved accounting and reporting standards as applicable in Pakistan for Window Takaful Operations. Our
responsibility is to express a conclusion on these financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, which applies
to a review of financial statements performed by the independent auditor of the entity. A review of financial
statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that
we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.

Emphasis of Matter

We draw attention to note 14 to the financial statements where it is disclosed that the Operator has challenged the
scope and applicability of Sindh Sales Tax and Punjab Sales Tax on life insurance services.

Our conclusion is not modified in this respect

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying financial
statements does not give a true and fair view of the financial position of the WTO Operations as at December 31,
2023, and of its financial performance and its cash flows for the year then ended in accordance with approved
accounting and reporting standards as applicable in Pakistan for Window Takaful Operations.

Other matter

This review engagement was conducted on specific request of management.

The engagement partner on the review resulting in this independent auditor's review report is Hena Sadiq.

Chartered Accountants

Place: Karachi
Dated: April 01, 2024

206
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Statement of Financial Position Statement of Profit or Loss
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
As at December 31, 2023 For the year ended December 31, 2023

2023 2022 Operator’s Statutory Operator’s Statutory

Operator’s Statutory Total Total Sub Fund Fund 2023 Sub Fund Fund 2022
Sub Fund Fund 2023 2023 2022 2022
Note ----------------------- (Rupees in ‘000) ------------------------- Note ------------------------------- (Rupees in ‘000) -------------------------------
Assets
Contribution revenue 871,575 3,116,484 3,988,059 1,083,499 3,083,244 4,166,743
Contribution ceded to retakaful - (109,157) (109,157) - (99,814) (99,814)
Investments Net contribution revenue 15 871,575 3,007,327 3,878,902 1,083,499 2,983,430 4,066,929

Equity securities 6 - 1,194,109 1,194,109 1,000,449 Takaful operator’s fee 297,984 (297,984) - 248,487 (248,487) -
Government securities 7 413,753 7,130,501 7,544,254 1,491,436 Mudarib fee 15,770 (15,770) - - - -
Investment income 16 78,726 1,157,220 1,235,946 18,580 739,062 757,642
Debt securities 8 - 261,272 261,272 429,040
Net realised fair value (loss) / gain on
Term deposits 9 - 75,000 75,000 2,175,000 financial assets 17 (2,599) 289,898 287,299 1,531 (25,951) (24,420)
Mutual funds 10 50,519 667,211 717,730 1,031,554 Net fair value gain / (loss) on financial assets at
Takaful / retakaful receivables - 22,669 22,669 2,373 fair value through profit or loss - unrealised 18 5,436 482,474 487,910 6,461 (285,647) (279,186)
Contribution due but unpaid - 7,469 7,469 1,963 Other income 19 22,026 408,893 430,919 14,330 35,074 49,404
Other loans and receivables 11 21,063 320,993 342,056 167,634 417,343 2,024,731 2,442,074 289,389 214,051 503,440
Interfund receivable 93,554 - 93,554 1,256 Net income 1,288,918 5,032,058 6,320,976 1,372,888 3,197,481 4,570,369
Taxation - payments less provision 9,587 175,483 185,070 153,225
Prepayments 7,642 - 7,642 3,337 Takaful benefits 20 (1,089) (1,743,778) (1,744,867) 1,036 (1,353,519) (1,352,483)
Cash and bank 12 18,243 2,319,170 2,337,413 2,753,762 Recoveries from retakaful 20 - 63,739 63,739 - 51,154 51,154
Total assets 614,361 12,173,877 12,788,238 9,211,029 Claims related expenses - (2,633) (2,633) - (3,261) (3,261)
Net takaful benefits (1,089) (1,682,672) (1,683,761) 1,036 (1,305,626) (1,304,590)
Equity and Liabilities Net change in takaful
liabilities (other than outstanding claims) (12,887) (3,346,261) (3,359,148) (20,085) (1,889,923) (1,910,008)
Capital contributed from shareholders’ fund 35,630 - 35,630 35,630 Acquisition expenses 21 (854,568) - (854,568) (982,345) - (982,345)
Qard-e-Hasna contributed by window takaful operator (25,630) 25,630 - - Marketing and administration expenses 22 (128,852) - (128,852) (147,225) (967) (148,192)
Money ceded to waqf fund - 500 500 500 Other expenses 23 (37,096) (3,125) (40,221) (35,698) (890) (36,588)
(1,033,403) (3,349,386) (4,382,789) (1,185,353) (1,891,780) (3,077,133)
Ledger account D 258,498 - 258,498 182,337

Total equity 268,498 26,130 294,628 218,467 Total expenses (1,034,492) (5,032,058) (6,066,550) (1,184,317) (3,197,406) (4,381,723)

Liabilities Finance Cost (2,588) - (2,588) (4,489) (75) (4,564)

Profit before tax 251,838 - 251,838 184,082 - 184,082
Takaful liabilities 13 69,786 11,937,098 12,006,884 8,643,376
Surplus transferred to SHF (100,000) - (100,000) - - -
Deferred taxation 166,330 - 166,330 90,653
Contribution received in advance - 80,134 80,134 91,714 Income tax expense 24 (75,677) - (75,677) (64,273) - (64,273)
Takaful / retakaful payables - - - 19,314
Interfund payable - 93,554 93,554 1,256 Profit after tax for the year 76,161 - 76,161 119,809 - 119,809
Other creditors and accruals 109,747 36,961 146,708 146,249
Total liabilities 345,863 12,147,747 12,493,610 8,992,562
The annexed notes 1 to 33 form an integral part of these financial statements.

Contingencies and commitments 14

Total equity and liabilities

614,361 12,173,877 12,788,238 9,211,029

The annexed notes 1 to 33 form an integral part of these financial statements.

Shahmeer Khalid Butt Shahmeer Khalid Butt

208 209
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Statement of Comprehensive Income Statement of Changes in Equity
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

Aggregate Capital
contributed Money
Operator’s Statutory 2023 2022 Ledger Total
from share- ceded to
Sub Fund Fund account D *
holders’ waqf fund
----------------------- (Rupees in ‘000) -------------------------
fund
Profit after tax for the year - as per statement of profit or loss 76,161 - 76,161 119,809 ----------------------- (Rupees in ‘000) -------------------------

Other comprehensive income - - - - Balance as at January 01, 2022 169,501 500 62,528 232,529

Total comprehensive income for the year 76,161 - 76,161 119,809 Total comprehensive income for the year
ended December 31, 2022

The annexed notes 1 to 33 form an integral part of these financial statements. - Profit for the year after tax - - 119,809 119,809
- Other comprehensive income - - - -
- - 119,809 119,809

Capital contribution to shareholders’ fund (133,871) - - (133,871)

Balance as at December 31, 2022 35,630 500 182,337 218,467

Balance as at January 01, 2023 35,630 500 182,337 218,467

Total comprehensive income for the year
ended December 31, 2023

- Profit for the year after tax - - 76,161 76,161

- Other comprehensive income - - - -
- - 76,161 76,161

Balance as at December 31, 2023 35,630 500 258,498 294,628


* This includes balances maintained in accordance with the requirements of Section 35 of the Insurance Ordinance, 2000
read with Rule 14 of the Insurance Rules, 2017 to meet solvency margins, which are mandatorily maintained for carrying on
of the life insurance business.


The annexed notes 1 to 33 form an integral part of these financial statements.

Shahmeer Khalid Butt Shahmeer Khalid Butt

210 211
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Statement of Cash Flows Notes to and forming part of the Financial Statements
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

(Rupees in ’000)
Operating Cash Flows 1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 Adamjee Life Assurance Company Limited (“the Company”) was incorporated in Pakistan on August 04, 2008 as a
(a) Takaful activities public unlisted company under the Companies Act, 2017 (Previously Companies Ordinance,1984). The Company
was converted to a public limited company on March 4, 2022 and registered itself on Pakistan Stock Exchange. The
Takaful contribution received 3,970,973 4,135,067 Company started its operations from April 24, 2009. Registered office of the Company is at 5th floor, Islamabad Stock
Retakaful contribution paid (85,028) (59,464) Exchange Towers, 55-B, Jinnah Avenue, Blue Area, Islamabad while its principal place of business is at Adamjee
Claims paid (1,743,140) (1,242,426) House, 3rd and 4th Floor, I.I Chundrigar Road, Karachi. The Company is a subsidiary of Adamjee Insurance Company
Hadia paid (456,739) (659,856) Limited.
Marketing and administrative expenses paid (635,159) (669,524)
The Company is engaged in Takaful business carrying on non-participating business only. Following are the statutory
Net cash generated from takaful activities 1,050,907 1,503,797 funds in respect of each class of its Takaful business:

(b) Other operating activities - Individual Family Takaful Business (refer note 1.2)
- Group Family Takaful Business (refer note 1.2)
Income tax paid (31,845) (111,698)
1.2 The Company was granted authorisation on May 04, 2016 under Rule 6 of Takaful Rules, 2012 to undertake Takaful
Total cash generated from all operating activities 1,019,062 1,392,099 Window Operations in respect of family takaful products by Securities and Exchange Commission of Pakistan (SECP)
and subsequently the Company commenced Window Takaful Operations from July 14, 2016. The Company formed
Investment activities a Waqf Fund namely the Adamjee Life Assurance Company Limited - Window Takaful Operations Waqf Fund (here-
in-after referred to as the Participant Takaful Fund (PTF) on December 22, 2015 under a Waqf deed executed by
Profit / return received 1,301,351 616,904 the Company with the cede amount of Rs. 500,000. The cede money is required to be invested in Shariah compliant
Dividend received 133,941 44,832 investments and any profit thereon can be utilised only to pay benefits to participants or defray PTF expenses. Waqf
Payment for investments (11,319,524) (5,971,267) deed also governs the relationship of the Company and policyholders for the management of Takaful operations,
Proceeds from disposal of investments 7,298,821 4,147,315 investment of policyholders’ funds and shareholders’ funds as approved by the Shariah Advisor appointed by the
Company.
Total cash used in investing activities (2,585,411) (1,162,216)
The Company issued supplemental policies to the Window Takaful Operations Waqf Fund on October 29, 2019 to
Net cash (used in) / generated from all activities (1,566,349) 229,883 include Group Family Participant’s Takaful Fund business in existing Window Takaful Operations Waqf Fund and the
Cash and cash equivalent at the beginning of the year 3,978,762 3,748,879 same was authorised by the Securities and Exchange Commission of Pakistan (SECP) on December 11, 2019 and
Cash and cash equivalent at the end of the year 12.2 2,412,413 3,978,762 the Company commenced its Group Family Takaful Business in the second Quarter of 2020.

Reconciliation to statement of profit or loss 2. BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE

Cash flow from all operating activities 1,019,062 1,392,099 2.1 These financial statements for Window Takaful Operations of the Company have been prepared to comply with
Depreciation and amortisation expense (20,932) (20,068) the requirement of Securities and Exchange Commission of Pakistan (SECP) vide its circular No 15 of 2019 dated
Financial charge expense (3,412) (5,274) November 2019 in which life insurers carrying out Window Takaful Operations are required to prepare separately, the
Write offs (569) - financial statements for Family Takaful Operations as if these are carried out by a standalone Takaful Operator.
Profit / (loss) on disposal of investment 287,299 (24,420)
Dividend income 132,753 46,614 These financial statements have been prepared in accordance with the accounting and reporting standards as
Other investment income 1,534,112 1,130,782 applicable in Pakistan. The accounting and reporting standards comprise of:
Decrease in assets other than cash 236,374 150,953
Decrease in liabilities other than borrowings (3,596,436) (2,281,422) - International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board
Surplus / (deficit) on revaluation of investment 487,910 (269,455) (IASB) as are notified under the Companies Act, 2017;

Profit after taxation for the year 76,161 119,809 - Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan, as
are notified under the Companies Act, 2017; and

- Provisions of and directives issued under the Companies Act, 2017, Insurance Ordinance, 2000, Insurance Rules,
The annexed notes 1 to 33 form an integral part of these financial statements. 2017, Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012.

In case the requirements differ, provisions or directives of the Companies Act, 2017, the Insurance Ordinance, 2000,
the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012 have been
followed.

Shahmeer Khalid Butt

212 213
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

2.2 Basis of measurement Other than the aforesaid amendments, the International Accounting Standards Board (IASB) has also issued the
following standards which have not been adopted locally by the Securities and Exchange Commission of Pakistan:
These financial statements have been prepared under the historical cost convention except as disclosed in accounting
policies relating to financial instruments, investments, lease liabilities, retirement benefits obligation and insurance - IFRS 1 – First Time Adoption of International Financial Reporting Standards
liabilities.
The SECP vide SRO 1715 (I) / 2023 dated November 21, 2023 has directed the companies engaged in insurance
2.3 Functional and presentation currency / takaful and reinsurance / retakaful to follow IFRS 17 from January 01, 2026. The Operator is in the process of
determination of impact assessement of IFRS - 17 on the Operator’s financial statments.
These financial statements have been presented in Pakistan Rupee, which is the Company’s functional and
presentation currency. Amounts presented have been rounded off to the nearest thousand unless otherwise stated. 3.2.1 Temporary Exemption From Application Of IFRS 9

3. Amendments and improvements to IFRSs As a takaful operator, the management has opted temporary exemption from the application of IFRS 9 as allowed
by International Accounting Standards Board (IASB) for entities whose activities are predominantly connected with
3.1 Amendments and improvements that are effective for the year ended December 31, 2023 takaful line of business.

The following amendments are effective for the year ended December 31, 2023. These amendments are either 4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION
not relevant to the Operator’s operations or are not expected to have significant impact on the Operator’s financial
statements other than certain additional disclosures. During the year, the Company adopted Disclosure of Accounting Policies (Amendments to IAS 1) from January 01,
Effective from 2023. The amendments require the disclosure of ‘material’, rather than ‘significant’, accounting policies. Although the
accounting period amendments did not result in any changes to the accounting policies themselves.
beginning on or after:

- Amendments to IAS 1 ‘Presentation of Financial Statements’ - Disclosure of January 01, 2023 The accounting policies adopted in the preparation of these financial statements are consistent with those of the
accounting policies previous financial year.

- Amendments to IAS 8 ‘Accounting Policies, Changes in Accounting Estimates January 01, 2023 4.1 Types of Window Takaful Operations
and Errors’ - Definition of accounting estimates

- Amendments to ‘IAS 12 Income Taxes’ - deferred tax related to assets January 01, 2023 a) Individual Family Takaful Unit Linked Business
and liabilities arising from a single transaction.
The Operator offers family takaful contracts. Family takaful contract is an arrangement which rests on key shariah
- Amendments to IAS 12 ‘ Income taxes’ - International Tax Reform — January 01, 2023 principles of mutual cooperation, solidarity and well being of a community, and is based on the principles of
Pillar Two Model Rules Wakalah Waqf Model. Under a takaful arrangement, individuals come together and contribute towards the common
objective of protecting each other against financial losses by sharing the risk on the basis of mutual assistance.

3.2 New amendments that are not yet effective: The obligation of waqf for waqf participants’ liabilities is limited to the amount available in the Waqf fund. In case
there is a deficit in the Waqf fund, the Window Takaful Operator shall grant an interest free loan (Qard-e-Hasna) to
The following amendments are effective for accounting periods, beginning on or after the date mentioned against make good the deficit. The loan shall be repayable from the future surplus generated in the Waqf fund, without any
each of them. These amendments are either not relevant to the Company’s operations or are not expected to have excess of the actual amount given to it. Repayment of Qard-e-Hasna shall receive priority over surplus distribution
to participants from the Waqf fund.
significant impact on the Operator’s financial statements other than certain additional disclosures.
The Operator offers Unit Linked Takaful Plans which provide shariah compliant financial protection and investment
Effective from vehicle to individual participants. These plans carry cash value, and offer investment choices to the participants to
accounting period direct their investment related contributions based on their risk / return objectives. The investment risk is borne by
beginning on or after: the participants.

- Amendments to IFRS 16 ‘Leases’ - Clarification on how seller-lessee January 01, 2024 Revenue recognition
subsequently measures sale and leaseback transactions
First year individual life contribution are recognised once the related policies have been issued and the contribution
- Amendments to IAS 1 ‘Presentation of Financial Statements’ - is received. Renewal contribution are recognised upon receipt of contribution. Single contribution are recognised
Non-current liabilities with Convents along with Classification of liabilities once the related policies are issued against the receipts of contribution. Contribution of riders like ‘Waiver of
as current or non-current January 01, 2024 Contribution’ will be recognised upon actuarial assumptions where actuary deems that all contribution due have
been received.
- Amendments to IAS 7 ‘Statement of Cash Flows’ and ‘IFRS 7 January 01, 2024
‘Financial instruments disclosures’ - Supplier Finance Arrangements
Amendments to IAS 1 ‘Presentation of Financial Statements’ - Disclosure of Recognition of participants’ liabilities
accounting policies
Participants’ liabilities included in the statutory fund are determined based on the appointed actuary’s valuation
- Amendments to IAS 21 ‘The Effects of Changes in Foreign Exchange Rates’ - conducted as at the reporting date, in accordance with Section 50 of the Insurance Ordinance, 2000.
Clarification on how entity accounts when there is long term lack of Exchangeability January 01, 2025





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 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

Claim expenses 4.2.1 Takaful

Claim expenses are recognised on the earlier of the policy expiry or the date when the intimation of the event Retakaful contribution
giving rise to the claim is received. Claim of ‘Waiver of Contribution’ is created when intimated with the amount to
be applied by the Company on behalf of policyholder.
Retakaful contibution ceded is recognised at the same time when the related contribution revenue is recognised. It is
Surrender of Unit Linked Takaful Business policies is made after these have been approved in accordance with measured in line with the terms and conditions of the retakaful treaties.
the Company’s Policy.
Retakaful recoveries
Liability for outstanding claims includes amounts in relation to unpaid reported claims and is stated at estimated
claims settlement cost. Full provision is made for the estimated cost of claims incurred and reported till the date of
reporting. Retakaful recoveries from retakaful operators are recognised at the same time when the claim is intimated and giving
rise to the right of recovery is recognised in the books of accounts of the Operator.
Liability for claims “Incurred But Not Reported” (IBNR) is included in the participants’ liabilities in accordance with
the estimates recommended by the appointed actuary. Experience refund

b) Group Family Takaful Business
Experience refund receivable from retakaful operators is included in the retakaful recoveries of claims.
Group Life contracts are mainly issued to employers to insure their commitments to their employees as required
under the ‘The Industrial and Commercial Employment (Standing Orders) Ordinance, 1968’. Amount due from / to retakaful operator

The group life business segment provides coverage to members / employees of business enterprises and All receivables (retakaful operator’s share in claims, commission from retakaful operator and experience refund) and
corporate entities, against death and disability under group life assurance schemes issued by the Operator. The
group credit life business segment provides coverage to a group of members or subscribers registered under a payables (retakaful contribution) under retakaful agreements are recognised on net basis in the Operator’s financial
common platform against death and disability. The business is written mainly through direct sales force. statements, only under the circumstances that there is a clear legal right of off set of the amounts.

Revenue recognition Amounts due from / to retakaful operator are carried at cost which is the fair value of the consideration to be received
/ paid in the future for services rendered / received, less provision for impairment, if any.
Contribution are recognised as and when due. In respect of certain group policies the Operator continues to provide
insurance cover even if the contribution is received after the grace period. Provision for unearned contribution is
included in the participants’ liabilities. 4.3 Statutory funds

Recognition of participants’ liabilities The Operator maintains statutory funds in respect of each class of life assurance business in which it operates. Assets,
liabilities, revenues and expenses of the Operator are referable to the respective statutory funds. However, where
Participants’ liabilities included in the statutory fund are determined based on the appointed actuary’s valuation
conducted as at the reporting date, in accordance with Section 50 of the Insurance Ordinance, 2000. these are not referable to statutory funds, these are allocated to shareholders’ fund on the basis of actuarial advice.
Apportionment of assets, liabilities, revenues and expenses, whenever required between funds are made on the basis
Claim expenses certified by the appointed actuary of the Operator. Participants’ liabilities have been included in statutory funds on the
basis of the actuarial valuation carried out by the appointed actuary of the Operator on the reporting date as required
Claim expenses are recognised on the date the insured event is intimated. under Section 50 of the Insurance Ordinance, 2000.

Liability for outstanding claims includes amounts in relation to unpaid reported claims and is stated at estimated
claims settlement cost. Full provision is made for the estimated cost of claims incurred and reported till the date of 4.4 Participants’ liabilities

reporting. a) Individual Family Takaful Unit Linked Business

Liability for claims “Incurred But Not Reported” (IBNR) is included in the participants’ liabilities in accordance with Participants’ liabilities constitute the fund value of unit linked contracts as well as non investment or risk reserves
the estimates recommended by the appointed actuary. of these contracts. Risk reserves constitute liabilities held to account for risks such as death and risk only
riders (accidental death and disability, monthly income benefit, waiver of contribution, etc.). Reserves for risk
Experience refund of contribution only contracts where contribution are level over the term of the contract are based on the Net Premium Method
whereas reserves for age related risk contracts are based on net unearned contribution.
Experience refund of contribution payable to participants’ is included in participants’ liability in accordance with the
policy of the Operator and the advice of the appointed actuary. - Incurred But Not Reported (IBNR) claims

4.2 Retakaful contracts held Reserves for IBNR claims have been estimated using claims run off triangle.

b) Group Family Takaful Business
Individual policies (including joint life policies underwritten as such) are retakful under an individual life retakaful
agreement whereas group life and group credit life contracts are retakafuled under group life and group credit life Policy reserves for these plans are based on the unearned contribution method net of allowances made for
retakaful agreements respectively. acquisition expenses, unexpired retakaful contribution and profit commission. Consideration is also given to the
requirement for a Premium Deficiency Reserve. The reserves also comprise allowance for “Incurred But Not
Reported” (IBNR) claims. The provision for ‘Incurred But Not Reported’ (IBNR) claims as included in participants’
liability is estimated based on the gross and net loss ratio of 75% and 65% respectively.

216 217
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

4.5 Receivables and payables relating to insurance contracts Initial recognition and measurement

These include amounts due to and due from agents and participants’ which are recognised when due. All financial assets are recognised when the Operator becomes a party to the contractual provision of the instrument.
Investments other than those categorised into ‘financial assets at fair value through profit or loss’ category are initially
4.6 Provisions recognised at fair value plus transaction costs which are directly attributable to the acquisition of the securities.
Financial assets classified ‘at fair value through profit or loss’ are initially recognised at fair value and transaction costs
are expensed in the statement of profit or loss / revenue account. All regular way purchases and sales of investments
Provisions are recognised when the Operator has a present legal or constructive obligation as a result of a past event
that require delivery within the time frame established by regulations or market convention are recognised at the trade
and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and
date. Trade date is the date when the Operator commits to purchase or sell the investment.
a reliable estimate of the obligation can be made. Provisions are regularly reviewed and adjusted to reflect the current
best estimate.
Subsequent measurement
4.7 Other creditors and accruals
Financial assets classified as ‘at fair value through profit or loss’ are subsequently measured at their fair values and
gains and losses arising from changes in fair value are included in the statement of profit or loss / revenue account.
Liabilities for creditors and other amounts payable are recognised initially at fair value plus directly attributable
transactions costs, if any, and subsequently measured at amortised cost. Available for sale investments are subsequently measured at their fair values and gains and losses arising from
changes in fair values are included in other comprehensive income. Any change in the provision for impairment
4.8 Employees accumulated compensated absences in value of investment is recognised in the statement of profit or loss / revenue account. Amortisation of premium /
discounts on acquisition of investments is carried out using effective yield method and charged to the statement of profit
The Operator accounts for the liability in respect of employees accumulated compensated absences in the period in or loss / revenue account, as appropriate. Investments classified as held to maturity and loans and receivables are
which they are earned. subsequently measured at amortised cost less any impairment losses, taking into account any discount or premium
on acquisition by using the effective interest rate method.
4.9 Financial instruments
Fair / market value measurements
4.9.1 Financial assets
For investments in quoted equity securities, the market value is determined by using Pakistan Stock Exchange
quotations at the reporting date. For investments in government securities, the market value is determined using
The Operator has classified its financial assets on initial recognition into the following categories: at fair value through
PKISRV rates. The fair market value of corporate sukuks is as per the rates issued by the Mutual Funds Association
profit or loss (held for trading), held to maturity, loans and receivables and available for sale. The classification depends
on the purpose for which the financial assets were acquired. of Pakistan (MUFAP) and the fair value of open ended mutual funds is declared by the relevant fund.

Impairment against financial assets
The Operator has classified its income earned on financial assets categorised at fair value through profit or loss as

‘income from trading investments’ while income earned on financial assets categorised as held to maturity, loans and
receivables and available for sale as ‘income from non trading investments’. The Operator assesses at each reporting date whether there is objective evidence that a financial asset or a group
of financial assets is impaired. If any such evidence exists for ‘available for sale’ financial assets, the cumulative loss
a) Financial assets at fair value through profit or loss (held for trading) measured as the difference between the carrying value and the current fair value, less any impairment loss on that
financial asset previously recognised in the statement of profit or loss / revenue account, as the case may be, is taken
Financial assets designated at fair value through profit or loss upon initial recognition include those group of
financial assets which are managed and their performance evaluated on a fair value basis. to the statement of profit or loss / revenue account. For financial assets classified as ‘loans and receivables’ and ‘held
to maturity’, a provision for impairment is established when there is objective evidence that the Operator will not be
b) Held to maturity able to collect all amounts due according to the original terms. The amount of the provision is the difference between
the asset’s carrying amount and the present value of estimated future cash inflows, discounted at the original effective
Financial assets with fixed or determinable payments and fixed maturity, where management has both the intent interest rate.
and the ability to hold till maturity.

c) Loans and receivables Derecognition

These are non derivative financial assets with fixed or determinable payments that are not quoted in an active Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have
market. been transferred and the Operator has transferred substantially all risks and rewards of ownership.

d) Available for sale
Offsetting of financial assets and liabilities
These are non derivative financial assets that are either designated as in this category or not classified in any of
the other categories. Financial assets and financial liabilities are offset and the net amount is reported in the financial statement only when
there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis
or realise the assets and settle the liabilities simultaneously.

218 219
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

4.9.2 Financial liabilities Deferred

All financial liabilities are recognised at the time the Operator becomes a party to the contractual provisions of the Deferred taxation is recognised using liability method on all major temporary differences arising between the carrying
instrument. Financial liabilities are recognised initially at fair value less any directly attribute transaction cost. amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred
tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible
Subsequent to initial recognition, these are measured at fair / market value or amortised cost using the effective temporary differences to the extent that it is probable that the temporary differences will reverse in the future and
interest rate method, as the case may be. taxable income will be available against which the temporary differences can be utilised. Deferred tax asset is reduced
to the extent that it is no longer probable that the related tax benefits will be realised. Deferred tax assets and liabilities
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expired. are measured using the tax rates that are expected to apply to the period when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting.
4.10 Cash and cash equivalents
4.15 Operating Segments
For the purpose of cash flow statement, cash and cash equivalents include balances with banks, term deposits with
original maturity of three months or less and cash and stamps in hand. A segment is a distinguishable component of the Operator that is engaged in providing products or services (business
segment) or in providing products or services within a particular economic environment (geographical segment), which
4.11 Other revenue recognition is subject to risks and rewards that are different from those of other segments. The Operator’s primary format of
reporting is based on business segments.
- Return on fixed income and government securities are recognised on time proportion basis using the effective
interest rate method. Operating segments are reported in a manner consistent with that provided to the chief operating decision maker.
- Return on deposits and loans to participants are recognised on a time proportion basis. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the Chief Executive Officer.
- Dividend income from investments is recognised when the Operator’s right to receive the dividend is established.
The Operator operates in Pakistan only. The Operator has two primary business segments for reporting purposes
- Gain or loss on sale of investments is included in the statement of profit or loss in the year in which disposal has namely; Individual Family Takaful Unit Linked Business and Group Family Takaful Business:
been made.

- All income on investments other than unrealised gain on available for sale investments are included in statement a) The individual Family Takaful segment provides family takaful coverage to individuals under unit based policies
of profit or loss / revenue account. Unrealised income from available for sale investments are included in other issued by the PTF

comprehensive income. b) The Group Family Takaful segment provides family takaful coverage to members of business enterprises,
corporate entities and common interest groups under Group Family Takaful schemes issued by the PTF
4.12 Acquisition costs
5. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
These are costs incurred in acquiring takaful contracts, maintaining such takaful contracts, and include without limitation
all forms of remuneration paid to takaful agents. In preparing these financial statements, the significant judgments made by management in applying the Operator’s
accounting policies and the key sources of estimating uncertainty were the same as those applied to the annual
Commission and other expenses are recognised as expense in the earlier of the financial year in which they are paid financial statements for the year ended December 31, 2023.
and the financial year in which they become payable, except that commission and other expenses which are directly
referable to the acquisition or renewal of specific contracts are recognised not later than the period in which the 6. INVESTMENT IN EQUITY SECURITIES
contribution to which they refer is recognised as revenue. (Rupees in ’000)
Fair value through profit or loss
4.13 Takaful operator fee (held for trading) 6.1 1,194,109 1,000,449

The shareholders of the Operator manage the Window Takaful Operations for the participants. Accordingly, the 6.1 At fair value through profit or loss (held for trading)
Operator is entitled to Takaful Operator’s Fee for the management of Window Takaful Operations under the Waqf
2023 2022
Fund, to meet its general and administration expenses. The Takaful Operator’s Fee, termed Wakalah fee, is recognised
upfront. Carrying Provision /
Market value Carrying value
Provision /
Market value
value Impairment Impairment

4.14 Taxation -------------------------------------------------------------------- (Rupees in ‘000) --------------------------------------------------------------------

Related party 18,821 - 27,518 50,531 - 32,889
Income tax expense for the year comprises deferred taxation only. Income tax expense is recognised in the statement
of profit or loss, except to the extent that it relates to the items recognised directly in equity and other comprehensive Others 952,243 - 1,166,591 1,088,777 - 956,754
income, in which case it is recognised in equity and other comprehensive income. 971,064 - 1,194,109 1,139,308 - 989,643

220 221
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

6.1.1 Details of equity securities - fair value through profit or loss

2023 2022 2023 2022
Market value Market value Market value Market value
No. of No. of
in Rupees No. of shares in Rupees in Rupees No. of shares in Rupees
shares shares
(000) (000) (000) (000)

Related party Fauji Fertilizer Bin Qasim Limited - - 400,500 6,140

GlaxoSmithKline (Pakistan) Limited - - 45,600 4,002
D.G. Khan Cement Company Limited 355,531 27,518 312,228 16,122 Hi-Tech Lubricants Limited - - 17,300 448
Nishat Mills Limited - - 81,815 4,499 International Industries Limited - - 80,000 6,053
Nishat Chunian Limited - - 588,637 12,267 International Steels Limited - - 105,090 4,766
27,518 32,889 Kohat Cement Limited - - 35,500 5,243
Kohinoor Textile Mills Limited - - 62,500 2,953
Others National Refinery Limited - - 8 1
Octopus Digital Limited - - 159,500 9,036
Meezan Bank Limited 454,947 73,410 959,947 95,553 Pak Elektron Limited - - 878,520 11,377
Faysal Bank Limited 2,069,108 67,412 346,221 8,943 Power Cement Limited - - 400,000 1,848
Interloop Limited 506,620 36,477 261,506 14,814 Pakistan State Oil Company Limited - - 30,106 4,335
Agriauto Industires Limited 3,000 299 - - Pakistan Telecommunication Company Limited - - 2,010,000 12,261
Attock Cement Pakistan Limited 50,000 4,811 75,000 4,241 Panther Tyres Limited - - 395,900 8,203
Cherat Cement Company Limited 6,834 1,114 230,717 23,510 Shell Pakistan Limited - - 64,200 6,898
Fauji Cement Company Limited 5,845,875 110,604 3,975,875 47,790 Sui Northern Gas Pipelines Limited - - 2,600 98
Lucky Cement Limited 146,605 115,375 143,973 64,295 Synthetic Products Enterprises Limited - - 367,632 3,640
Maple Leaf Cement Factory Limited 1,507,264 58,663 2,018,264 45,552 Thal Limited - - 34,800 6,725
Pioneer Cement Limited 121,500 13,965 - - The Organic Meat Company Limited - - 329 7
Mari Petroleum Company Limited 30,183 63,267 80,866 125,096 Waves Singer Pakistan Limited - - 200,000 1,726
Oil and Gas Development Company Limited 588,459 66,172 665,379 53,004 Waves Home Appliances Limited - - 40,000 266
Pakistan Petroleum Limited 638,944 73,498 651,529 44,395 - - 200,000 1,726
Mughal Iron and Steel Industries Limited 1,024,200 67,782 321,077 15,511 - - 40,000 266
Engro Corporation Limited 193,000 56,918 376,245 98,580 1,166,591 956,754
Systems Limited 131,110 55,533 50,610 24,492
AGP Limited 397,696 27,962 70,000 4,549
Abbott Laboratories (Pakistan) Limited 46,200 21,262 9,000 4,170 7. INVESTMENT IN GOVERNMENT SECURITIES
(Rupees in ’000)
Haleon Pakistan Limited 84,400 14,264 59,100 9,686
Highnoon Laboratories Limited 27,950 14,102 25 14 Fair value through profit or loss (held for trading) 7.1 7,544,254 1,491,436
Citi Pharma limited 136,540 3,241 275,000 6,641
Ferozsons Laboratories Limited 25,000 5,516 30,000 4,127 7.1 Fair value through profit or loss (held for trading)
Hub Power Company Limited 455,000 53,276 180,215 11,368
Dynea Pakistan Limited 51,100 9,464 53,100 8,230
Lucky Core Industries Limited 15,431 12,015 - - Term Principal
Maturity year Effective yield (%) Carrying value Market value
Century Paper & Board Mills Limited 17,000 554 - - (year / months) repayment

Packages Limited 78,880 41,813 51,450 19,045 ----------------------- (Rupees in ‘000) -----------------------
National Foods Limited 214,500 31,103 - - GOP Ijara Sukuk 5 Years - FRR 5 years 2028 15.59% 600,010 600,000 603,000
Rafhan Maize Products Company Limited 500 4,999 - - GOP Ijara Sukuk 5 Years - FRR 5 years 2026 17.14% 399,037 425,000 370,090
Bata Pakistan Limited 20,920 36,238 20,220 43,742 GOP Ijara Sukuk 5 Years - FRR 5 years 2025 21.00% 92,588 100,000 83,790
Pakistan Aluminium Beverage Cans Limited 80,000 6,046 - - GOP Ijara Sukuk 5 Years - FRR 5 years 2024 20% - 22% 1,676,310 1,679,625 1,678,050
GOP Ijara Sukuk 3 Years - FRR 3 years 2026 16.02% - 21.03% 1,636,172 1,643,000 1,679,054
Shabbir Tiles & Ceramics Limited 421,000 5,999 150,000 1,290 GOP Ijara Sukuk 5 Years - VRR 5 years 2028 21.04% 560,063 560,000 559,776
Shifa International Hospitals Limited 95,806 13,439 115,806 12,403 GOP Ijara Sukuk 5 Years - VRR 5 years 2027 21.67% - 22.13% 239,076 239,900 243,709
Air Link Communication Limited - - 289,500 8,563 GOP Ijara Sukuk 5 Years - VRR 5 years 2026 21.49% - 21.92% 445,224 450,000 456,250
Aisha Steel Mills Limited - - 501,000 4,113 GOP Ijara Sukuk 5 Years - VRR 5 years 2025 21.49% - 21.83% 620,549 630,000 634,035
GOP Ijara Sukuk 3 Years - VRR 3 years 2026 21.03% 534,449 535,000 535,642
Amreli Steels Limited - - 556,000 9,980 GOP Ijara Sukuk 1 Year - VRR 1 year 2024 19.64% - 22.55% 695,231 695,000 700,858
Atlas Honda Limited - - 19,000 5,700
Avanceon Limited - - 85,750 5,662 As at December 31, 2023 7,498,709 7,557,525 7,544,254
Bankislami Pakistan Limited - - 1,402,500 18,737
As at December 31, 2022 1,530,908 1,535,000 1,491,436
Bestway Cement Limited - - 44,000 5,632
Engro Fertilizers Limited - - 121,055 9,308

222 223
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

(Rupees in ’000)
8. INVESTMENT IN DEBT SECURITIES 10.1.1 Details of mutual funds - fair value through profit or loss

2023 2022
At fair value through profit or loss (held for trading) 8.1 261,272 429,040
Market value Market value
No. of units in Rupees No. of units in Rupees
8.1 At fair value through profit or loss (held for trading) (000) (000)
Related parties
2023 2022

Carrying Provision /
Market value Carrying value
Provision /
Market value Alhamra Islamic Stock Fund 22,442,198 314,865 27,611,896 241,880
value impairment impairment
Alhamra Islamic Asset Allocation Fund 3,447,628 327,085 3,885,140 243,978
-------------------------------------------------------------------- (Rupees in ‘000) -------------------------------------------------------------------- Alhamra Islamic Income Fund 667,028 75,780 4,193,281 458,058
Advances against purchase Alhamra Islamic Money Market Fund - - 127 13
of corporate sukuks - - - 227,000 - 227,000 717,730 943,929
Corporate sukuks 259,731 - 261,272 203,125 - 202,040
Others
259,731 - 261,272 430,125 - 429,040
HBL Islamic Income Fund - - 796,674 87,625
Market value

Maturity Face value per

2023 2022 2023 2022
date certificate
11. OTHER LOANS AND RECEIVABLES
-----(No. of certificates) ---- ----------------------- (Rupees in ‘000) ----------------------- (Rupees in ’000)
8.1.1 Corporate sukuks
Accrued income on investments 315,239 130,546
Dubai Islamic Sukuk Dec 02, 2032 22 75 1,000 22,132 - Security deposits 11,017 11,228
Meezan Bank Limited Sukuk II Dec 16, 2031 64 - 1,000 63,977 77,040 Loan to employees - secured 2,771 2,529
Meezan Bank Limited Sukuk I Jan 09, 2030 50 - 1,000 50,125 - Dividend receivable 6,664 7,852
Pakistan Energy Sukuk II May 21, 2030 25,008 25,000 5 125,038 125,000 Receivable against the sale of investment 6,032 9,342
25,144 25,075 261,272 202,040 Other receivables 333 6,137
342,056 167,634

9. INVESTMENT IN TERM DEPOSITS 12. CASH AND BANK

(Rupees in ’000)

Deposits maturing within 12 months (held to maturity) 9.1 75,000 2,175,000 - Policy stamps 3,753 7,036

9.1 This represents term deposits with banks which carry interest rate of 21% per annum (December 31, 2022: 14.75% to Cash at bank
16% per annum) and maturing in January 2024.
- Current accounts 90,391 145,967
10. INVESTMENT IN MUTUAL FUND (Rupees in ’000) - Saving accounts 12.1 2,243,269 2,600,759
2,333,660 2,746,726
Fair value through profit or loss (held for trading) 10.1 717,730 1,031,554
2,337,413 2,753,762
10.1 Fair value through profit or loss (held for trading)

2023 2022
12.1 This carries profit rate ranging from 12.50% to 20.5% (December 31, 2022: 9% to 12%) per annum.
Carrying Provision /
Market value Carrying value
Provision /
Market value
value impairment impairment
12.2 Cash and cash equivalents
-------------------------------------------------------------------- (Rupees in ‘000) -------------------------------------------------------------------- (Rupees in ’000)
Cash and cash equivalents includes the following for
Related party 488,169 - 717,730 999,283 - 943,929 the purpose of cash flow statement:

Others - - - 128,197 - 87,625
- Cash in hand and policy stamps 3,753 7,036
488,169 - 717,730 1,127,480 - 1,031,554 - Cash at bank 2,333,660 2,746,726
- Term deposits maturing within three months 75,000 1,225,000

2,412,413 3,978,762

224 225
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

13 TAKAFUL LIABILITIES 14. CONTINGENCIES AND COMMITMENTS

(Rupees in ’000)

Reported outstanding claims (including claims in payment) 13.1 194,045 189,685 The contingencies reported in annual financial statements of the Company also includes impacts of Window Takaful
Incurred but not reported claims 13.2 61,967 44,964 Operations as at December 31, 2023. Out of reported amount thereon, an amount of Rs. 177.018 million (December
Investment component of unit linked and account value contracts 13.3 11,354,261 8,111,996 31, 2022: Rs. 132.61 million) pertains to Window Takaful Operations. There are no other material contingencies or
Liabilities under group takaful contracts commitments as at December 31, 2023.
(other than investment linked) 13.4 7,290 24,904
Other takaful liabilities 13.5 135,068 127,864 15. Contribution revenue
(Rupees in ’000)
11,752,631 8,499,413
Gross Contribution
Surplus retained in Participants’ Takaful Fund (PTF) 254,253 143,963 Regular Contribution Individual Contracts*
12,006,884 8,643,376 First year 850,911 1,174,305
Second year renewal 785,854 1,185,670
Subsequent year renewal 2,129,551 1,505,145
13.1 Reported outstanding claims (including claims in payment) 3,766,316 3,865,120

Gross of retakaful 220,517 219,838 Single contribution individual contracts* 78,060 168,378
Recoverable from retakaful (26,472) (30,153) Group contracts without cash values 143,683 133,245
Net reported outstanding claims 194,045 189,685 221,743 301,623

Total gross contribution 3,988,059 4,166,743

13.2 Incurred but not reported claims
Less: contributions ceded to retakaful
Individual life On individual life first year business (13,090) (22,432)
On individual life second year business (12,850) (16,289)
Gross of retakaful 98,725 49,075 On individual life subsequent renewal business (26,749) (19,912)
Retakaful recoveries (50,015) (14,718) On individual life single contribution business (49) (173)
Net of retakaful 48,710 34,357 On group contracts (56,419) (41,008)
(109,157) (99,814)
Group life
Net contribution 3,878,902 4,066,929
Gross of retakaful 25,588 15,039
Retakaful recoveries (12,331) (4,432) * Individual contracts are those underwritten on an individual basis.
Net of retakaful 13,257 10,607
16. INVESTMENT INCOME
61,967 44,964
Dividend income 132,753 46,614
13.3 Investment component of unit linked and
account value contracts Income from government securities -
fair value through profit or loss 634,181 162,359
Investment component of unit linked policies 11,354,261 8,111,996
Income from debt securities -
13.4 Liabilities under group takaful contracts fair value through profit or loss
(other than investment linked) - Return on corporate sukuks 56,693 59,314

Gross of retakaful 13,267 39,891 Income from term deposit receipts -

Retakaful credit (5,977) (14,987) held to maturity
Net of retakaful 7,290 24,904 - Return on term deposit receipts 412,319 489,355

13.5 Other takaful liabilities 1,235,946 757,642

Gross of retakaful 166,865 160,351

Retakaful credit (31,797) (32,487)
Net of retakaful 135,068 127,864



226 227
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

17. NET REALISED FAIR VALUE GAINS / (LOSSES) 20.1 Claim development table
ON FINANCIAL ASSETS (Rupees in ’000) Incident Reported
20.1.1 Individual life claims
Fair value through profit or loss 2019 2020 2021 2022 2023
Realised gains / (losses) on: ---------------------------- (Rupees in ‘000) ----------------------------
Incident year
- Equity securities 266,841 (264)
- Government securities (5,072) (5,066)
- Debt securities (6,378) - Estimate of ultimate claim costs:
- Mutual funds 31,908 (19,090)
287,299 (24,420)
At the end of accident year 5,956 24,416 48,420 69,388 87,070
18. NET FAIR VALUE GAINS / (LOSSES) ON FINANCIAL ASSETS AT One year later 13,730 60,943 87,291 103,300 -
FAIR VALUE THROUGH PROFIT OR LOSS - UNREALISED Two years later 15,023 63,417 95,071 - -

Net unrealised gains / (losses) on: Three years later 15,023 65,906 - - -
- Equity securities 223,045 (138,859) Four years later 21,673 - - - -
- Government securities 45,545 (33,585) Current estimate of cumulative claims 21,673 65,906 95,071 103,300 87,070
- Debt securities 1,541 (1,085)
- Mutual funds 229,561 (95,926) Cumulative payments to date (21,673) (65,906) (92,571) (97,145) (47,025)
Total gains / (losses) 499,692 (269,455) Liability recognised in the statement
of financial position - - 2,500 6,155 40,045
Investment related expenses (11,782) (9,731)
487,910 (279,186) Incident Reported
20.1.2 Group life claims
19. OTHER INCOME 2019 2020 2021 2022 2023
Incident year ---------------------------- (Rupees in ‘000) ----------------------------
Return on bank balances 394,000 14,330
Bonus allocation from operator’s sub fund 36,919 34,417
Other tabarru income (PTF) - 657 Estimate of ultimate claim costs:
430,919 49,404
At the end of accident year - 10,889 29,459 28,641 74,842
20. TAKAFUL BENEFITS
One year later - 27,682 41,221 43,468 -
Gross claims Two years later - 28,582 43,321 - -
Three years later - - - - -
Claims under individual contracts
- by death (134,543) (120,143) Four years later - - - - -
- by insured event other than death (870) (92) Current estimate of cumulative claims - 28,582 43,321 43,468 74,842
- by maturity (226,612) (219,251) Cumulative payments to date - (28,582) (43,321) (43,468) (72,041)
- by surrender (1,289,072) (974,694)
Total gross individual contract claims (1,651,097) (1,314,180) Liability recognised in the statement
of financial position - - - - 2,801
Claims under group contracts
- by death (92,060) (41,187)
- by insured event other than death (1,710) 2,884
Total gross group contract claims (93,770) (38,303)

Total gross claims

(1,744,867) (1,352,483)

Retakaful recoveries
- on individual life claims 26,461 43,604
- on group life claims 37,278 7,550
63,739 51,154

Net takaful benefit expense (excluding claim related expenses) (1,681,128) (1,301,329)

228 229
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

21. ACQUISITION EXPENSES (Rupees in ’000) 22. MARKETING AND ADMINISTRATION EXPENSES
(Rupees in ’000)

Operator’s Sub-Fund Employee benefit cost 22.1 (51,485) (64,924)
Travelling expenses (1,209) (1,422)
Acquisition costs Appointed actuary’s fee (1,419) (657)
Auditor’s remuneration (674) (338)
Remuneration to takaful intermediaries on Legal and professional charges (11,114) (8,693)
individual contract: Information technology expenses (11,302) (9,823)
Printing and stationery (6,126) (10,514)
- Hadia to agent on first year contributions (317,487) Depreciation
(462,102) (6,117) (4,885)
- Hadia to agent on second year contributions (53,780) Depreciation - right of use assets
(64,424) (7,483) (9,477)
- Hadia to agent on subsequent year renewal contributions (44,570) Amortisation
(29,625) (1,194) (1,315)
- Hadia to agent on single contributions (3,278) Rent expense
(6,088) (1,187) (2,536)
- other benefits to takaful intermediaries (23,494) Insurance expense
(56,413) (359) (838)
Total hadia cost (442,609) Vehicle running
(618,652) (5,509) (7,794)
Postage and courier (13,624) (10,012)
Remuneration to takaful intermediaries on group contracts: Electricity, gas and water (2,479) (2,558)
Office repairs and maintenance (4,784) (3,589)
- Hadia (7,122) (6,576) Entertainment (1,044) (1,097)
- Other benefits to takaful intermediaries (952) (743) Bank charges (151) (1,527)
(8,074) (7,319) Training and development (56) (939)
Fees and subscription (3,689) (2,852)
Other acquisition costs Marketing cost 3,243 (6,117)
- Employee benefit costs (232,334) (210,959) Other expense (1,090) 3,715
- Travelling expenses (3,313) (3,554) (128,852) (148,192)
- Information technology expense (1,706) (1,785)
- Printing and stationery (2,032) (2,392) 22.1 Employee benefit cost
- Depreciation (3,861) (2,767)
- Depreciation - right of use asset (2,277) (1,624) Salaries, allowance and other benefits (47,946) (61,843)
- Rent, rates and taxes (30,868) (21,583) Charges for post employment benefits (3,539) (3,081)
- Insurance cost (542) (994) (51,485) (64,924)
- Car fuel and maintenance (35,500) (26,159) 23. OTHER EXPENSES
- Postage (4,181) (3,036)
- Electricity, gas and water (11,338) (8,304) Bonus allocation to PIF (36,919) (34,417)
- Office repairs and maintenance (24,071) (28,473) Expenses on behalf of PTF - contribution (73) (371)
- Entertainment (6,599) (4,926) Expenses on behalf of PTF - tabarru (104) (657)
- Training and development (2,622) (8,809) Charity and donations 23.1 (1,009) (1,143)
- Marketing cost (27,663) (18,814) Others (2,116) -
- Financial charges (824) (710) (40,221) (36,588)
- Legal and professional charges (853) (78)
- Miscellaneous (471) 5,201
- Policy stamps (12,294) (15,981) 23.1 This represents the charity payable against purification of income of Sharia compliant securities.
- Medical examination fee (536) (627)
(403,885) (356,374) 24. INCOME TAX
(854,568) (982,345)
For the year
- Deferred tax charge (75,677) (64,273)

230 231
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

25. RELATED PARTY TRANSACTIONS 26. SEGMENTAL INFORMATION

The related parties comprise of the holding company, directors, key management personnel, associated undertakings,
group companies entities with common directors and staff gratuity fund. Related party transactions and balances, 26.1 REVENUE ACCOUNT BY STATUTORY FUND
including those disclosed elsewhere in these financial statements are given below: FOR THE YEAR ENDED DECEMBER 31, 2023 Individual
Group Family
Family Total
Takaful
Transactions during the year Takaful Unit
Business
(Rupees in ’000) Linked Business
Holding company ------------------- (Rupees in ‘000) -------------------
Takaful expense 1,278 1,281 Income
Contribution less retakaful 3,791,638 87,264 3,878,902
Associated undertakings Net investment income 2,372,840 32,315 2,405,155
Contribution written 30,344 12,500 Total net income 6,164,478 119,579 6,284,057
Takaful expense 13,398 (4,800)
Hadia and other incentives in respect of bancatakaful 90,017 158,915 Takaful benefits and expenditures
Profit on bank deposits 87,270 21,541 Takaful benefits including bonus net of retakaful (1,627,269) (56,492) (1,683,761)
Bank charges 2,320 439 Management expenses less recoveries (976,520) (12,790) (989,310)
Investments purchased 705,407 6,039,686 Total takaful benefits and expenditures (2,603,789) (69,282) (2,673,071)
Investments sold 2,236,329 5,154,695
Dividend income 108,010 44,460 Excess of income over takaful benefits and expenditures 3,560,689 50,297 3,610,986
Net change in takaful liabilities (other than outstanding claims) (3,316,394) (42,754) (3,359,148)
Other related parties Surplus before tax 244,295 7,543 251,838
Contribution written 5,251 3,754 Movement in participants’ liabilities 3,316,394 42,754 3,359,148
Takaful expense 22 - Surplus transferred to shareholders’ fund (100,000) - (100,000)
Investment advisor fee 4,886 4,992 Balance of statutory funds at beginning of the year 8,652,237 110,574 8,762,811
Balance of statutory funds at end of the year 12,112,926 160,871 12,273,797
Key management personnel
Remuneration 28,904 28,092 Individual
Advances given to key management personnels 1,695 - REVENUE ACCOUNT BY STATUTORY FUND Group Family
Family Total
Recoveries against advances to key management personnels 498 - Takaful
FOR THE YEAR ENDED DECEMBER 31, 2022 Takaful Unit
Business
Linked Business
Staff retirement benefit plan (gratuity fund)
------------------- (Rupees in ‘000) -------------------
Charge for the year 4,309 6,489

Balances outstanding as at the end of the year Income
Contribution less retakaful 3,974,692 92,237 4,066,929
Associated undertakings Net investment income 462,065 6,301 468,366
Contribution due but unpaid 4,621 12,500 Total net income 4,436,757 98,538 4,535,295
Bank deposits 1,272,955 554,992
Investments held 641,948 1,926,818 Takaful benefits and expenditures
Hadia payable 29,164 20,955 Takaful benefits including bonus net of retakaful (1,273,837) (30,753) (1,304,590)
Dividend receivables 6,092 6,068 Management expenses less recoveries (1,125,653) (10,962) (1,136,615)
Accrued income - 39,432 Total takaful benefits and expenditures (2,399,490) (41,715) (2,441,205)
Excess of income over takaful benefits and expenditures 2,037,267 56,823 2,094,090
Other related parties
Contribution due but unpaid 438 350 Net change in takaful liabilities (other than outstanding claims) (1,855,804) (54,204) (1,910,008)
Remuneration payable for the management of discretionary Surplus before tax 181,463 2,619 184,082
investment portfolio 767 767 Movement in participants’ liabilities 1,855,804 54,204 1,910,008
Capital contribution (to) / from shareholders’ fund (159,501) 25,630 (133,871)
Balance of statutory funds at beginning of the year 6,774,471 28,121 6,802,592
Balance of statutory funds at end of the year 8,652,237 110,574 8,762,811

232 233
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

26.2 REVENUE ACCOUNT BY SUB STATUTORY FUND Statutory funds Aggregated

Statutory funds Aggregated
Individual Group
Individual Group Family Family 2023 2022
Family Family 2023 2022 Takaful Takaful
Takaful Takaful
Note ---------------------------- (Rupees in ‘000) --------------------------
Note ---------------------------- (Rupees in ‘000) -------------------------- 26.2.2 Participants’ Takaful Fund (PTF)
26.2.1 Operator’s Sub Fund (OSF)
Income
Income
Allocated contribution 39,387 119,579 158,966 160,668
Wakalah fee 689,894 24,104 713,998 929,344
Tabarru income 230,801 - 230,801 243,412
Tharawat fee 26.2.3 163,656 - 163,656 127,510
Retakaful ceded (52,738) (56,419) (109,157) (99,814)
Mudarib fee 26.2.2 15,770 - 15,770 -
Total contribution income net of retakaful 217,450 63,160 280,610 304,266
Bid offer spread 157,577 - 157,577 154,155
Participants’ Takaful fund management income 26.2.2 93,928 - 93,928 99,362
Investment income 30,852 32,315 63,167 18,193
Income against admin cost charged to PIF 26.2.3 40,400 - 40,400 21,615
Total income 248,302 95,475 343,777 322,459
Investment income 103,589 - 103,589 40,902
Total income 1,264,814 24,104 1,288,918 1,372,888
Expenditure
Participants’ Takaful fund management charges 26.2.1 (93,928) - (93,928) (99,361)
Expenditures
Mudarib fee 26.2.1 (15,770) - (15,770) -
Acquisition costs (846,327) (8,241) (854,568) (982,345)
Expenses - - - (153)
Administration cost and others (126,894) (4,546) (131,440) (151,714)
Death claim expense net of retakaful recoveries (74,167) (55,492) (129,659) (91,328)
Claim related expenses (89) (1,000) (1,089) 1,036
(183,865) (55,492) (239,357) (190,842)
Bonus Allocation to PIF 26.2.3 (36,919) - (36,919) (34,417)
Excess of income over expenditure 64,437 39,983 104,420 131,617
Expenses on behalf of PTF - Contribution (71) (2) (73) (624)
Technical reserve at the beginning of the year 217,096 67,700 284,796 153,079
Expenses on behalf of PTF - Tabbarru (104) - (104) (657)
(Less): Technical reserve at end of the year (117,063) (17,900) (134,963) (140,733)
Total management cost (1,010,404) (13,789) (1,024,193) (1,168,721)
(Less): surplus retained in technical reserves (164,470) (89,783) (254,253) (143,963)
Excess of income over expenditure 254,410 10,315 264,725 204,167
Movement in technical reserve (64,437) (39,983) (104,420) (131,617)
Technical reserve at the beginning of the year 56,599 300 56,899 36,914
Surplus for the year - - - -
Less: Technical reserve at end of the year (66,715) (3,071) (69,786) (56,999)
Movement in technical reserves (10,116) (2,771) (12,887) (20,085)
Movement in technical reserve 64,437 39,983 104,420 131,617
Surplus for the year 244,294 7,544 251,838 184,082
Capital contribution by OSF - - - 25,630
Movement in technical reserves 10,116 2,771 12,887 20,085
Balance of Participants’ Takaful Fund at
Surplus transferred to shareholders’ fund (100,000) - (100,000) -
beginning of the year 240,096 103,330 343,426 186,179
Balance of Operator’s Sub Fund at the
Balance of Participants’ Takaful Fund at
beginning of the year 300,145 7,244 307,389 103,222
end of the year 304,533 143,313 447,846 343,426
Balance of Operator’s Sub Fund at end of the year 454,555 17,559 472,114 307,389

Represented by:
Represented by:
Capital contributed by shareholders’ fund - 10,000 10,000 10,000
Money ceded to waqf funds 500 - 500 500
Capital contributed to group family takaful - (10,000) (10,000) (10,000)
Capital contribution by OSF - 35,630 35,630 35,630
Surplus transferred to shareholders’ fund (100,000) - (100,000) -
Qard-e-Hasna received by PTF 22,500 - 22,500 22,500
Qard-e-Hasna to PTF (22,500) - (22,500) (22,500)
Participants’ liabilities 281,533 107,683 389,216 284,796
Technical reserve at end of the year 66,715 3,071 69,786 56,999
Retained earnings on other than participating business - - - -
Retained earnings on other than participating business 510,340 14,488 524,828 272,890
Balance of statutory fund 304,533 143,313 447,846 343,426

Balance of Operator’s Sub Fund 454,555 17,569 472,114 307,389

234 235
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

Statutory funds Aggregated 26.3

Segmental results by line of business Individual life
For the year ended December 31, 2023 Other lines of
Individual Group distributed Total
business
Family Family 2023 2022 through banks
Takaful Takaful Income ------------------- (Rupees in ‘000) -------------------
Gross Contribution
Note ---------------------------- (Rupees in ‘000) -------------------------- - First year individual regular contribution 325,956 524,956 850,912
26.2.3 Participants’ Investment Fund (PIF)
- Individual renewal contribution 2,368,516 546,891 2,915,407

Income - Individual single contribution 19,546 58,511 78,057
Allocated contribution 2,957,518 - 2,957,518 2,922,576 - Group contribution - 143,683 143,683
Bonus Allocation from OSF 26.2.1 36,919 - 36,919 34,417 Total gross contribution 2,714,018 1,274,041 3,988,059
Investment income 2,238,399 - 2,238,399 409,214
Total net income 5,232,836 - 5,232,836 3,366,207 Retakaful contribution
Less: Claims expense - Individual (36,082) (16,656) (52,738)
- Group - (56,419) (56,419)
Surrender - Regular (1,013,218) - (1,013,218) (572,975) Total retakaful contribution (36,082) (73,075) (109,157)
Surrender - Top up (278,165) - (278,165) (405,022)

Maturity (226,612) - (226,612) (219,251)
Death claim (35,018) - (35,018) (17,006) Net contribution revenue 2,677,936 1,200,966 3,878,902
(1,553,013) - (1,553,013) (1,214,254)
Expenditures Net investment income 2,285,241 119,914 2,405,155

Tabarru charges (230,697) - (230,697) (242,755) Total Income 4,963,177 1,320,880 6,284,057
Tharawat fee - investment management 26.2.1 (163,656) - (163,656) (127,510)
Administration charges 26.2.1 (40,400) - (40,400) (21,615) Takaful benefits and expenditures
Other expenses (1,009) - (1,009) (1,143) Takaful benefits net of retakaful (1,495,635) (188,126) (1,683,761)
Bank charges (2,220) - (2,220) (632)
Management expenses less recoveries (276,196) (713,114) (989,310)
(437,982) - (437,982) (393,655)
Total takaful benefits and expenditures (1,771,831) (901,240) (2,673,071)
Excess of income over expenditures 3,241,841 - 3,241,841 1,758,298 Excess of income over takaful benefits and expenditures 3,191,346 419,640 3,610,986
Technical reserve at the beginning of the year 8,111,996 - 8,111,996 6,353,698 Add: Participants’ liabilities at beginning of year 7,550,255 862,744 8,412,999
Technical reserve at the end of the year 11,353,837 - 11,353,837 8,111,996 Less: Participants’ liabilities at end of year (10,193,952) (1,578,195) (11,772,147)
Movement in technical reserve 3,241,841 - 3,241,841 1,758,298 Surplus / (deficit) for the year 547,649 (295,811) 251,838
Surplus for the year - - - -
Movement in technical reserve 3,241,841 - 3,241,841 1,758,306 Segmental results by line of business
Balance of statutory funds at beginning of the year 8,111,996 - 8,111,996 6,353,690
Individual life
For the year ended December 31, 2022 Other lines of
Balance of statutory funds at end of the year 11,353,837 - 11,353,837 8,111,996 distributed Total
business
through banks
Represented by: Income ------------------- (Rupees in ‘000) -------------------
Gross contribution
Retained earnings on other than participating business 11,353,837 - 11,353,837 8,111,996 - First year individual regular contribution 561,634 612,671 1,174,305
Balance of statutory fund 11,353,837 - 11,353,837 8,111,996 - Individual renewal contribution 2,357,918 332,897 2,690,815
- Individual single contribution 140,354 28,024 168,378
- Group contribution - 133,245 133,245
Total gross contribution 3,059,906 1,106,837 4,166,743
Retakaful contribution
- Individual (44,263) (14,543) (58,806)
- Group - (41,008) (41,008)
Total retakaful contribution (44,263) (55,551) (99,814)
Net contribution revenue 3,015,643 1,051,286 4,066,929
Net investment income 407,142 61,224 468,366
Total Net Income 3,422,785 1,112,510 4,535,295

Takaful benefits and expenditures
Takaful benefits net of retakaful (1,196,702) (107,888) (1,304,590)
Management expenses less recoveries (575,152) (561,464) (1,136,615)
Total takaful benefits and expenditures (1,771,853) (669,352) (2,441,205)
Excess of income over takaful benefits and expenditures 1,650,932 443,158 2,094,090
Add: Participants’ liabilities at beginning of year 6,051,678 451,313 6,502,991
Less: Participants’ liabilities at end of year (7,550,255) (862,744) (8,413,000)
Surplus for the year 152,354 31,728 184,082
236 237
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

27. MOVEMENT IN INVESTMENTS 28.1.3 Other price risk

Fair value
Held to Available
through Total Other price risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of
maturity for sale
profit or loss changes in market prices (other than those arising from profit rate risk or currency risk), whether those changes are
--------------------- (Rupees in ‘000) --------------------- caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial
instruments traded in the market.
As at January 1, 2022 2,785,000 - 3,343,244 6,128,244
- - 28.1.4 Equity price risk
Additions 18,815,000 - 5,037,232 23,852,232
Disposals (sale and redemptions) (19,425,000) - (4,157,717) (23,582,717)
The Operator’s listed securities are susceptible to market price risk arising from uncertainties about the future value
Fair value net gains
(excluding net realised gains / losses) - - (270,279) (270,279)
of investment securities. The Operator limits market risk by maintaining a diversified portfolio. In addition, the Operator
As at December 31, 2022 2,175,000 - 3,952,480 6,127,480 actively monitors the key factors that affect stock market.

As at January 1, 2023 2,175,000 - 3,952,480 6,127,480 Sensitivity Analysis

Additions 22,960,000 - 11,332,800 34,292,800 In case of 1% increase / (decrease) in PSX 100 index as at December 31, 2023, with all other variables held constant,
Disposals (sale and redemptions) (25,060,000) - (6,058,212) (31,118,212) the total comprehensive income would have been increase / (decrease) by Rs. 11.94 million (December 31, 2022:
Fair value net gains 10.01 million) as result of gain / (losses) on equity securities. The analysis in based on the assumption that the equity
(excluding net realised gains / losses) - - 490,297 490,297
index had increased / (decreased) by 1% with all other variables held constant and represents management’s best
As at December 31, 2023 75,000 - 9,717,365 9,792,365
estimate of a reasonable possible shift in PSX 100 index, having regard to the historical volatility of the index.

28. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES 28.1.5 Profit rate risk

28.1 Financial risk management objectives and policies Profit rate sensitivity measures the degree with which a fixed-income asset price moves with changes in profit rates.
Profit rates and fixed-income asset prices are inversely correlated. More interest rate sensitivity means an asset’s price
The Operator is exposed to a variety of financial risks: market risk (comprising currency risk, profit rate risk, and other fluctuates more with a change in profit rates.
price risk), liquidity risk and credit risk in relation to the financial statements on its statement of financial position.
The Operator’s overall risk management seeks to minimize potential adverse effects on the Operator’s financial Debt securities held to maturity as accounted for at amortised cost and their carrying amounts are not sensitive to
performance of such risk. changes in the levels of profit rates

The Board of Directors has the overall responsibility for the establishment and oversight of the Operator’s risk Management monitors the sensitivity of reported profit rate movements priodically by assessing the expected changes
management framework. There are Board Committees and Management Committees for developing risk management in the different portfolios due to parallel movement of 100 basis points in all yield curves.
policies and its monitoring.
An increase in 100 basis points in profit yield would result in a loss of Rs. 38.42 million (2022: Rs. 14.38 million).
28.1.1 Market risk
A decrease in 100 basis points in profit yield would result in a gain of Rs. 38.42 million (2022: Rs. 14.38 million).
Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices,
whether those changes are caused by factors specific to the individual security, or its issuer, or factors affecting all 28.1.6 Liquidity risk
securities traded in the market. The Operator is exposed to market risk with respect to its investments and with respect
to products other than unit linked products (where the investment risk is passed on to policyholders). The Operator Liquidity risk is the risk that the Operator will encounter difficulty in meeting obligations associated with financial liabilities
limits market risk by maintaining a diversified portfolio and by continuously monitoring developments in government that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the
securities and equities. Operator could be required to pay its liabilities earlier than expected or it encounters difficulty in raising funds to meet
commitments associated with financial liabilities as they fall due.
28.1.2 Foreign currency risk
The Operator is maintaining sufficient liquid assets both in the form of cash deposits and liquid securities to meet its
Foreign currency risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of long term and short term cash requirements.
changes in foreign exchange rates.
28.1.7 Credit risk
The Operator, at present is not materially exposed to currency risk as majority of the transactions are carried out in
Pakistan Rupees. Credit risk is the risk which arises with the possibility that one party to a financial instrument will fail to discharge its
obligation and cause the other party to incur a financial loss.

238 239
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

Concentration of credit risk arises when a number of counter parties have similar types of business activities. As a 28.1.9 Profit rate risk exposure
result, any change in economic, political or other conditions would affect their ability to meet contractual obligations in a
similar manner. Major credit risk arises in credit exposure to group life policyholders on account of contribution due but Profit rate risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes
unpaid and on bank balances. in market profit rates. The Operator invests in securities and has bank balances and deposits that are subject to profit
rate risk. The Operator limits profit rate risk by monitoring changes in profit rates in the currencies in which its cash and
The management monitors exposure to credit risk through regular review of credit exposure and assessing credit investments are denominated.
worthiness of counter parties.
The information about Operator’s exposure to profit rate risk based on contractual repricing or maturity dates as of
The credit quality of the Operator’s bank balances (including term deposits) can be assessed with reference to external December 31, 2023, whichever is earlier, is as follows:
credit ratings as follows:
2023
Profit bearing Non profit bearing
Ratings of Banks* On balance sheet financial instruments Maturity after
(Rupees in ’000) Maturity up to Maturity after Sub Total Maturity up to
1 Year
Sub Total
Total
1 Year 1 Year 1 Year

A 1,224,659 1,177,006 ------------------------------------------------------------------ (Rupees in ‘000) ------------------------------------------------------------------

Assets
A+ 30,183 1,802,719
Investments 775,858 7,104,668 7,880,526 1,911,839 - 1,911,839 9,792,365
AA 8,748 1,183,468
Takaful / retakaful receivables - - - 22,669 - 22,669 22,669
AA- 1,029,261 - Loans and other receivables - - - 342,056 - 342,056 342,056
AA+ 10,961 409,716 Cash and bank 2,333,660 - 2,333,660 3,753 - 3,753 2,337,413
AAA 104,848 348,817 3,109,518 7,104,668 10,214,186 2,280,317 - 2,280,317 12,494,503
2,408,660 4,921,726
Liabilities

*Rating of banks performed by PACRA and VIS Credit Rating Company. Takaful / retakaful payables - - - - - - -
Other creditors and accruals - - - 146,708 - 146,708 146,708
The credit quality of Operator’s exposure on corporate sukuks can be assessed with reference to rating issued by rating - - - 146,708 - 146,708 146,708
agency as follows:
3,109,518 7,104,668 10,214,186 2,133,609 - 2,133,609 12,347,795

Issuer of Corporate sukuks ** Rating (Rupees in ’000)

Dubai Islamic Bank Pakistan Limited - Sukuk AA- 22,132 - 2022
Meezan Bank Limited - Sukuk AAA 63,977 - Profit bearing Non profit bearing

Meezan Bank Limited - Sukuk AAA 50,126 77,040 On balance sheet financial instruments Maturity up to Maturity after Sub Total Maturity up to Maturity after
Sub Total
Total
1 Year 1 Year 1 Year 1 Year
Pakistan Energy - Sukuk II Sovereign 125,038 125,000
-------------------------------------------------------------------- (Rupees in ‘000) --------------------------------------------------------------------
Assets
261,272 202,040
Investments 2,175,000 1,920,476 4,095,476 2,032,003 - 2,032,003 6,127,479
**Rating of issuers of corporate sukuks performed by PACRA and VIS Credit Rating Company. Takaful / retakaful receivables - - - 4,336 - 4,336 4,336
Loans and other receivables - - - 167,634 - 167,634 167,634
Investment in government securities are not exposed to any credit risk. Cash and bank 2,600,759 - 2,600,759 153,003 - 153,003 2,753,762
4,775,759 1,920,476 6,696,235 2,356,976 - 2,356,976 9,053,211

The management monitors exposure to credit risk in family takaful receivable from group clients through regular review Liabilities
of credit exposure and makes provision for doubtful family takaful receivable based on prudent estimates. All contribution
underwritten except group are recieved in advance therefore there is no credit risk on such policies. Takaful / retakaful payables - - - 19,314 - 19,314 19,314
Other creditors and accruals - - - 146,249 - 146,249 146,249
- - - 165,563 - 165,563 165,563
28.1.8 Retakaful risk

4,775,759 1,920,476 6,696,235 2,191,413 - 2,191,413 8,887,648
In order to minimise the financial exposure arising from large claims, the Operator, in the normal course of business,
enters into agreement with other retakaful operators.

Retakaful contribution ceded does not relieve the Operator from its obligation to the policyholders and as a result, the
Operator remains liable for the portion of outstanding claims insured through retakaful, to the extent that reinsurer fails
to meet the obligation under the retakaful agreements.

In order to manage this risk, the Operator obtains reinsure covers only from companies with sound financial health.

240 241
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

29. TAKAFUL RISK Benefits covered per life Sum assured at the end of December 2023
Total benefits assured
29.1 Individual Family Takaful Unit Linked Business Rupees Before retakaful After retakaful
(Rupees in ‘000) Percentage (Rupees in ‘000) Percentage
The risk covered is mainly death and sometimes disability and / or critical illness. The risk of death and disability will
vary from region to region. The PTF may get exposed to poor risks due to unexpected experience in terms of claim
severity or frequency. This can be a result of anti-selection, fraudulent claims, a catastrophe or poor persistency. 0 - 200,000 714,077 1.62% 710,393 2.66%
The PTF may also face the risk of poor investment return, and liquidity issues on monies invested in the fund. The 200,000 - 400,000 3,718,603 8.46% 3,705,750 13.89%
PTF faces the risk of inadequacy of the mortality Charge (takaful contribution) particularly due to the fact that these 400,001 - 800,000 9,977,389 22.70% 9,575,599 35.90%
contracts are long term. Additionally, the risk of poor persistency can lead to an impact on the size of the PTF. A larger 800,001 - 1,000,000 9,176,454 20.87% 6,662,523 24.98%
PTF may allow for a greater degree of cross subsidisation of mortality risk, increasing the probability of convergence More than 1,000,000 20,376,378 46.35% 6,022,015 22.57%
between actual and expected mortality experience. Total 43,962,901 26,676,280

The Operator manages these risks through its underwriting, retakaful, claims handling policy and other related controls. Sum assured at the end of December 2022
The Operator has a well defined medical under-writing policy and avoids issuing cover to high risk individuals. This Benefits covered per life Total benefits assured
puts a check on anti selection. The need for profit testing is reviewed on an annual basis to ensure reasonableness Rupees Before retakaful After retakaful
of contribution charged for risk underwritten by the PTF. Retakaful contracts have been purchased by the Operator
(Rupees in ‘000) Percentage (Rupees in ‘000) Percentage
to limit the maximum exposure on any one participant. The Operator has a good spread of business throughout
the country thereby ensuring diversification of geographical risks. To avoid poor persistency, the Operator applies
quality controls on the standard of service provided to participants of the PTF and has placed checks to curb mis- 0 - 200,000 849,097 1.78% 843,954 2.82%
selling and improvement in the standard of customer service. For this, a regular branch wise monitoring of lapsation 200,000 - 400,000 4,442,312 9.29% 4,420,663 14.80%
rates is conducted. On the claims handling side, the Operator has procedures in place to ensure that payment of 400,001 - 800,000 11,608,845 24.27% 11,126,641 37.24%
any fraudulent claims is avoided. For this, a Claims Committee with variable materiality limits review all claims for 800,001 - 1,000,000 10,724,837 22.42% 7,524,830 25.19%
verification and specific and detailed investigation of all apparently doubtful claims (particularly of high amounts) is More than 1,000,000 20,202,554 42.24% 5,961,383 19.95%
conducted. The Operator maintains adequate liquidity in each unit fund to cater for potentially sudden and high cash Total 47,827,645 29,877,471
requirement. Further, all payments on account of claims are made after necessary approval of relevant authority as
per policy of the Operator. The Operator reserves the right to review the takaful contributions deductible under the
contracts, thus limiting the risk of under pricing. a) Sources of uncertainty in the estimation of future benefit payments and contribution receipts

Frequency and severity of claims Uncertainty in the estimation of future benefit payments and contribution receipts for long term unit linked takaful
contracts arises from the unpredictability of long term changes in overall levels of mortality and variability in
The Operator measures the concentration of risk by geographical area. Concentration of risk is not currently a factor participant’s behaviour.
of concern as the business is developing and aims to achieve a spread of risks across various parts of the country.
b) Factors impacting future benefit payments and contribution receipts are as follows:
However, undue concentration by amounts could have an impact on the severity of benefit payments on a portfolio
basis. Mortality: The expected mortality is assumed to be 80% of SLIC (2001-05).

The Operator charges for mortality risk on a monthly basis for all takaful contracts. It has the right to alter these charges Persistency: The Operator exercises a periodic analysis on recent and historic experience and persistency is
based on its mortality experience and hence minimises its exposure to mortality risk. Delays in implementing increases calculated by applying statistical methods. Persistency rates vary by products and more importantly the sales
in charges and market or regulatory restraints over the extent of the increases may hinder its mitigating effect. The distribution channel. An allowance is then made for any trend in the data to arrive at best estimate of future
Operator manages these risks through its underwriting strategy and retakaful arrangements. persistency rates for each sales distribution channel.

The table below presents the concentration of covered benefits across five bands of covered benefits per participant. c) Process used to decide on assumptions
The benefit covered figures are shown gross and net of the retakaful contracts described above.
For long term unit linked takaful contracts, assumptions are made in two stages. At inception of the contract,
The amounts presented are showing total exposure of the PTF including exposure in respect of riders attached to the the Operator determines assumptions on future mortality, persistency, administration expenses and investment
main policies. returns. At regular intervals, profit testing is conducted on main policies. Assumptions used for profit testing of the
main policies are as follows:

Mortality: The Operator assumes the expected mortality to be 80% of SLIC (2001-05)

242 243
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

Persistency: The Operator exercises a periodic analysis on recent and historic experience and persistency is Sum assured at the end of December 2023
Benefits covered per life Total benefits assured
calculated by applying statistical methods. Persistency rates vary by products and more importantly the sales
distribution channel. An allowance is then made for any trend in the data to arrive at best estimate of future Rupees Before retakaful After retakaful
persistency rates for each sales distribution channel. (Rupees in ‘000) Percentage (Rupees in ‘000) Percentage

Expense levels and inflation: A periodic study is conducted on the Operator’s current business expenses and
future projections to calculate per policy expenses. Expense inflation is assumed in line with assumed investment 0 - 500,000 19,686,582 18.46% 16,610,106 29.14%
return. 500,001 - 1,000,000 25,582,096 23.99% 18,939,497 33.22%
1,000,001 - 1,500,000 5,820,659 5.46% 2,958,381 5.19%
Investment returns: The investment returns are based on the historic performance of the assets and asset types 1,500,001 - 2,000,000 4,590,755 4.31% 2,014,673 3.53%
underlying the fund. More than 2,000,000 50,941,012 47.78% 16,483,724 28.92%
Total 106,621,104 57,006,381
e) Changes in assumptions
Sum assured at the end of December 2022
There are no changes in assumptions. Benefits covered per life Total benefits assured
Rupees Before retakaful After retakaful
29.2 Group Life Family Takaful
(Rupees in ‘000) Percentage (Rupees in ‘000) Percentage

The main exposure of the PTF is to mortality risk. The PTF may be exposed to the risk of unexpected claim severity
or frequency. This can be a result of writing business with higher than expected mortality, writing high cover amounts 0 - 500,000 11,171,714 4.98% 11,171,714 7.01%
without adequate underwriting, difficulty of verification of claims, fraudulent claims or a catastrophe. The PTF also 500,001 - 1,000,000 172,549,086 76.86% 131,166,931 82.29%
faces risk such as that of under pricing to acquire business in a competitive environment and of non receipt of takaful 1,000,001 - 1,500,000 2,430,528 1.08% 1,343,881 0.84%
contributions in due time. There also exists a potential risk of asset liability term mismatch due to liabilities being very 1,500,001 - 2,000,000 3,530,848 1.57% 1,611,635 1.01%
short term in nature. More than 2,000,000 34,825,324 15.51% 14,105,197 8.85%
Total 224,507,500 159,399,358
The Operator manages these risks through underwriting, retakaful, effective claims handling and other related controls.
The Operator has a well defined medical under-writing policy and avoids writing business for groups with overly hazardous a) Sources of uncertainty in the estimation of future benefit payments and contribution receipts
exposure. Pricing is done using the retakaful rates. The contribution charged takes into account the actual experience
of the client and the nature of mortality exposure the group faces. The rates are certified by the appointed actuary for Other than conducting a liability adequacy for Unexpired Risk Reserves (URR), there is no need to estimate
large groups. The Operator also maintains an MIS to track the adequacy of the takaful contribution charged. Retakaful mortality for future years because of the short duration of the contracts.
contracts have been purchased by the Operator to limit the maximum mortality exposure of any one covered person.
The Operator ensures writing business with good geographical spread and tries to maintain a controlled exposure to b) Process used to decide on assumptions
large groups which generally have poor experience. Writing business of known hazardous groups is also avoided. On
the claims handling side, the Operator ensures that payment of any fraudulent claims is avoided. Strict monitoring is in The business is too new for any meaningful investigation into the group’s past experience. However, industry
place in order to keep the outstanding balances of contribution at a minimum, especially the ones that are due for more experience, the insured group’s own past experience and retakaful risk rates are used to determine the expected
than 90 days. The bulk of the assets held against liabilities of this line of business are cash to money market with short level of risk in relation to the SLIC (2001-05) Individual Life Ultimate Mortality Table.
durations and high liquidity, thus mitigating the risk of asset value deterioration and liability mismatch.
c) Changes in assumptions
Frequency and severity of claims
There are no changes in assumptions.
The Operator measures concentration of risk by geographical area. Concentration of risk is not currently a factor of
concern as the business is developing and aims to achieve a spread of risks across various parts of the country. d) Sensitivity analysis

The table below presents the concentration of covered benefits across five bands of covered benefits per participant. The table below shows the level of respective variation in liabilities for change in each assumption while holding
The benefit covered figures are shown gross and net of the retakaful contracts described above. all other assumptions constant.

The amounts presented are showing total exposure of the PTF including exposure in respect of riders attached to the
main policies.

244 245
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

Variables Change in Increase in liability December 31, 2023

Variable 2023 Carrying value Fair value

(Rupees in ‘000) Fair value

Loans and Financial
Available through
Worsening of mortality rates for risk policies +10% pa 1,325,640 for Sale profit
Receiv liabilities Total Level 1 Level 2 Level 3 Total
ables
Increase in reporting lag +10% pa 1,325,640 or loss
----------------------------------------------------------- (Rupees in ‘000’) -----------------------------------------------------------
29.3 Liability Adequacy Test Financial assets measured at fair value

- Investments
Liability adequacy test is applied to all long term contracts. Liability adequacy test is carried out using current best Government securities (sukuks) - 7,544,254 - - 7,544,254 7,544,254 - - 7,544,254
Equity securities - 1,194,109 - - 1,194,109 1,194,109 - - 1,194,109
estimates of assumptions and future net cash flows, including contribution receivable, benefits payable and investment Mutual funds - 717,730 - - 717,730 717,730 - - 717,730
income from related assets. Debt securities (corporate sukuks) - 261,272 - - 261,272 261,272 - - 261,272

- 9,717,365 - - 9,717,365 9,717,365 - - 9,717,365
To determine the adequacy of liabilities, assumptions must be based on realistic best estimates. We have compared our Financial assets not measured at fair value
valuation mortality assumption (SLIC mortality table) with the mortality of developing Asian countries, namely: India and
- Balances with banks - - 2,337,413 - 2,337,413
Malaysia. The comparison suggests that the best estimate assumption is better than the experience reflected in SLIC - Term deposit receipts - - 75,000 - 75,000
mortality table. - Other financial assets - - 364,725 - 364,725
- - 2,777,138 - 2,777,138
The investment return assumed for valuation is 3.75% per annum. This rate is prescribed by law. We have valued our
liabilities based on the 10-Year PIB rate of 14.375% to determine adequacy. Financial liabilities not measured at fair value

- Other financial liabilities - - - (146,708) (146,708)
The table below compares total participant liabilities Individual Family Takaful Unit Linked Business under existing
- 9,717,365 2,777,138 (146,708) 12,641,211
valuation basis with participant liabilities calculated using best estimate assumptions:

Participant Participant December 31, 2022

liabilities on liabilities using Carrying value Fair value
existing best estimate Fair value
Loans and Financial
Assumptions valuation basis assumption Available through
Receiv liabilities Total Level 1 Level 2 Level 3 Total
for Sale profit
ables
----------- (Rupees in ‘000) ----------- or loss
----------------------------------------------------------- (Rupees in ‘000’) -----------------------------------------------------------
Mortality 11,537,614 11,517,024 Financial assets measured at fair value

Investment Returns 11,537,614 11,534,467 - Investments
Government securities (sukuks) - 1,491,436 - - 1,491,436 - 1,491,436 - 1,491,436
Listed equity securities - 1,000,449 - - 1,000,449 1,000,449 - - 1,000,449
The liabilities evaluated under the assumptions suggest the recognised liabilities are adequate and no further provision Units of mutual funds - 1,031,554 - - 1,031,554 1,031,554 - - 1,031,554
is required. Debt securities (corporate sukuks) - 202,040 - - 202,040 - 202,040 - 202,040

- 3,725,479 - - 3,725,479 2,032,003 1,693,476 - 3,725,479
30. FAIR VALUE OF FINANCIAL INSTRUMENTS

Financial assets not measured at fair value
The table below analyses financial instruments measured at the end of the reporting period by the level in the fair value
hierarchy into which the fair value measurement is categorised. - Advances against purchase of corporate sukuks - - 227,000 - 227,000
- Balances with banks - - 2,753,762 - 2,753,762
- Term deposit receipts - - 2,175,000 - 2,175,000
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction - Other financial assets - - 162,673 - 162,673
between market participants at the measurement date. - - 5,318,435 - 5,318,435

Financial liabilities not measured at fair value

The Operator measures fair values using the following fair value hierarchy that reflects the significance of the inputs
- Other financial liabilities - - - 166,819 166,819
used in making the measurements:
- 3,725,479 5,091,435 166,819 8,650,095
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Fair value measurements using inputs for the asset or liability that are not based on observable market data
(i.e. unobservable inputs).

246 247
 Annual Report 2023 Annual Report 2023
Adamjee Life Assurance Company Limited Adamjee Life Assurance Company Limited
Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements
Window Takaful Operations (Un-audited) Window Takaful Operations (Un-audited)
For the year ended December 31, 2023 For the year ended December 31, 2023

31.Statement of Solvency 32. CORRESPONDING FIGURES

Particulars Individual Family Group Family Corresponding figures have been rearranged and reclassified, wherever necessary, for the purpose of better
Takaful Unit Takaful Business presentation and comparison. The material reclassification has been made of Rs. 70.35 million which represents the
Linked Business expenses that are reclassified from marketing and administration expenses to acquisition expenses.

Assets The details of reclassification are as follows:
Investments Marketing and
Equity securities 1,911,836 - Administration Acquisition
Government sukuks 7,665,261 194,232 Expenses Expenses
Debt securities 261,271 - Note 21 Note 22
Term deposits 75,000 - ---------- (Rupees in ‘000) ----------
Takaful / retakaful receivables - -
Other loans and receivables 103,963 - Salaries and other benefits (40,863) 40,863
Taxation - payments less provision 185,070 - Travelling expenses (33) 33
Prepayments 7,642 - Information technology expenses (274) 274
Cash and Bank 2,305,385 32,028 Printing and stationery (625) 625
Rent, rates & taxes (510) 510
Total Assets (A) 12,515,428 241,948 Insurance expense (63) 63
Vehicle running (13,831) 13,831
Office repairs & maintenance (3) 3
Inadmissible assets as per following clauses of section 32 Entertainment (375) 375
(2) of Insurance Ordinance, 2000 Training and development (5,579) 5,579
Marketing cost (13,777) 13,777
(b) Excess of prohibited limit - (175) Miscellaneous 5,597 (5,597)
(d) Loan to employees (2,771) - Legal and professional charges (15) 15
(h) Contribution more than 90 days - (6) (70,351) 70,351
Total of in-admissible assets (B) (2,771) (181)

Total admissible assets (C = A-B) 12,512,657 241,767 33. DATE OF AUTHORISATION FOR ISSUE

Total liabilities These financial statements were authorised for issue by the Board of Directors of the Company in their meeting held
on February 26, 2024.
Takaful liabilities net of retakaful recoveries 167,018 2,697
Contribution received in advance 79,663 471
Takaful / retakaful payables 9,130 750
Other creditors and accruals 146,195 77,159

Total liabilities (D) 402,006 81,077

Total net admissible assets (E = C-D) 12,110,651 160,690

Minimum solvency requirement

Participants liability (11,702,085) (110,754)
Solvency Margin (133,728) (14,277)
(11,835,813) (125,031)
Excess in net admissible assets over minimum requirements 274,838 35,659

Shahmeer Khalid Butt

248 249
04
OTHER
INFORMATION
 Annual Report 2023 Annual Report 2023

Geographical Presence & Branch network

252 253
 Annual Report 2023 Annual Report 2023

Pattern of Shareholding
as of December 31, 2023

Categories of Shareholders Shareholders Shares Held Percentage

Directors, Chief Executive Officer and their spouse(s)
and minor children
Mr. Shaikh Muhammad Jawed 1 250 0.00
Mr. Umer Mansha 1 250 0.00
Mrs. Naz Mansha 1 250 0.00
Mr. Imran Maqbool Malik 1 250 0.00
Mr. Ahmad Alman Aslam 1 250 0.00
Mr. Shahmeer Khalid Butt 1 250 0.00
Mr. Mohammad Ali Zeb 1 250 0.00

Associated Companies, undertakings and related parties 2 228,612,225 91.44

Executives - - -

NIT and ICP - - -

Banks, Development Finance Institutions, Non-Banking Finance

Companies - - -

Insurance Companies - - -

Modarabas and Mutual Funds 5 2,309,329 0.92

General Public
a. Local 683 2,815,576 1.13
SIALKOT
b. Foreign 46 64,000 0.03

Foreign Companies - - -
OTHERS 18 16,197,120 6.48
Totals 761 250,000,000 100.00
KASUR

TOBA TEK SINGH

Share holders holding 10% or more Shares Held Percentage

MANDIBAHUDDIN ADAMJEE INSURANCE COMPANY LIMITED 224,998,250 90.00

LAHORE

MULTAN

KHAIRPUR
FAISALABAD

254 255
 Annual Report 2023 Annual Report 2023

7. Transact any other business as may be placed before the meeting with the permission of the chair.

Notice of 15th Annual General Metting Attached to this Notice is:

(a) Statement of Material Facts covering the above-mentioned special business, as required under Section
134(3) of the Companies Act, 2017); and
Notice is hereby given that the 15th Annual General Meeting of the Shareholders of Adamjee Life Assurance
(b) Statement under Regulation 4 (2) of the Companies (Investment in Associated Companies or Associated
Company Limited will be held at ISE Auditorium, ISE Towers, 55-B, Jinnah Avenue, Blue Area, Islamabad, on
Undertaking) Regulations, 2017.
Thursday April 25, 2024 at 11:00 a.m. as well as through video conferencing facility to transact the following
business:
By Order of the Board

Ordinary Business:

1. Confirm the minutes of 14th Annual General Meeting held on April 27, 2023;

2. Receive, consider and adopt the Audited Financial Statements for the year ended December 31, 2023 together
with the Directors' and Auditors' reports thereon and Chairman’s Review Report; Karachi: Thursday April 04, 2024 Arsalan Ahmed Khan
Company Secretary
3. To appoint External Auditor for the year ending 31st December 2024 and fix their remuneration. The retiring
Notes:
auditors Yousuf Adil, Chartered Accountants have completed five years as auditors of the company and are no
longer eligible for appointment. The board of Directors have recommended the appointment of KPMG Taseer
1. The Share Transfer Books of the Company shall remain closed from April 18, 2024 to April 25. 2024 (both days
Hadi & Co, Chartered Accountants for the year 2024 who have given their consent to act as auditors.
inclusive). Transfer received at the Share Registrar of the Company, by the close of business on April 18, 2024
will be treated in time for attending and voting at the meeting.
4 To approve payment of a Final Cash Dividend of Rs.1.00 per share, i.e. 10% for the year ended December
2. A member entitled to attend and vote at the Meeting may appoint another member as his/her proxy to attend
31,2023, as recommended by the Board of Directors, payable to shareholders appearing in register at close of
and vote for him/her provided that a corporation being a member may appoint as its proxy a person who is not
business on April 17, 2024, which is in addition to the 10% Interim Cash Dividend (i.e. Rs. 1.00 per share)
a member and is duly authorized by the corporation. The form of Proxies is enclosed in English and Urdu. Proxy
already paid.
must be received at the Registered Office of the Company not later than 48 hours of the meeting.

Special Business: 3. Participation in the AGM through Video link:

In accordance with the Circular No.4 of 2021 of the SECP, the Company has also provided members the facility
of attending the general meeting through video link.
5. To consider, and if deem fit, to pass with or without any amendment/modification the following resolution as
The shareholders interested to participate through video link are requested to please provide below information
special resolution, for the transmission of annual audited account through QR enabled code and weblink, which
at Email: [email protected] at the earliest but not later than close of business on April 22, 2024.
will be provided to the shareholders in the notice of general meeting, as allowed under S.R.O. 389 (I)/2023
issued by the Securities and Exchange Commission of Pakistan.
Name of the E-mail
“Resolved That, notice of meeting shall be dispatched to members as per requirements of the Act, on their Company CNIC Number Folio Number Cell Number
Shareholder Address
registered address, containing the QR code and the weblink address to view and download the annual audited
financial statements together with the reports and documents required to be annexed thereto under the Act. Adamjee Life
Assurance Co.
Resolved That, the Company shall be considered compliant with the relevant requirements of section 223(6)
of the Companies Act, 2017 by sending the Audited Financial Statements through e-mail to those shareholders
who have provided their email address and/or sending a notice of meeting containing a QR code and the Please note that video link and login credentials will be shared with only those members / designated proxies
weblink address. In case a hard copy of Audited Financial Statements and/or Notice of AGM of the Company is whose e-mail and other required information are received in required time as mentioned above.
desired, a specific request for the same by the shareholder will be made. a) Video-link for the meeting will be sent to members at their provided email addresses enabling them to attend
the meeting on the given date and time.
Further Resolved That the Chief Executive Officer, Chief Financial Officer and Company Secretary are hereby b) Login facility will be opened thirty (30) minutes before the meeting time to enable the participants to join the
jointly and severally authorized to do all necessary acts, deeds and things in connection therewith and ancillary meeting after the identification process. Shareholders will be able to login and participate in the meeting
thereto as may be required or expedient to give effect to the spirit and intent of the above resolution.” proceedings through their devices after completing all the formalities required for the identification and
verification of the shareholders.
6. To ratify and approve transactions conducted with Related Parties by passing the following special resolution c) Shareholders may send their comments and suggestions relating to the agenda items of the AGM at least
with or without modification: two (2) working days before the meeting, at the given email address [email protected].
Shareholders are requested to mention their full name, CNIC # and Folio/CDC Account # for this purpose.
"Resolved That the transactions conducted with Related Parties as disclosed in the Statement of Material
Information under Section 134 (3) be and are hereby ratified, approved and confirmed." Shareholders are encouraged to participate in the meeting to consolidate their attendance and participation
through proxies.

4. The members who intend to attend and participate physically in the AGM of the Company will be allowed to
participate as usual. The Company will follow the best practices and comply with the instructions of the
Government and SECP to ensure protective measures are in place for well-being of its members.

5. CDC Account Holders will further have to follow the under mentioned guidelines as laid down in Circular 1 dated
January 26, 2000 issued by the Securities and Exchange Commission of Pakistan

256 257
 Annual Report 2023 Annual Report 2023

A. For attending the Meeting:

i) In case of individuals, the account holder or sub-account holder and/or the person whose registration detail
are uploaded as per CDC Regulations, shall authenticate his/her identity by showing his/her original
Computerized National Identity Card (CNIC) or original passport at the time of attending the Meeting.
Adamjee Life Assurance Company Limited
ii) In case of corporate entity, the Board of Directors' resolution/power of attorney with specimen signature of Ballot paper for voting through post for the Special Business at the Annual General Meeting to be held at ISE
the nominee shall be produced (unless it has been provided earlier) at the time of Meeting. Auditorium, ISE Towers, 55-B, Jinnah Avenue, Blue Area, Islamabad, on Thursday April 25, 2024 at 11:00 a.m.
B. For appointing proxies: Website: www.adamjeelife.com.
i) In case of individuals, the account holder or sub-account holder whose registration details are uploaded as Folio / CDS Account Number
per the regulations, shall submit the proxy form as per the above requirement. Name of Shareholder / Proxy Holder
ii) The proxy form shall be witnessed by two persons whose names, addresses and CNIC numbers shall be Registered Address
mentioned on the form. Number of shares Held
iii) Attested copies of CNIC or the passport of the beneficial owners and the proxy shall be furnished with the CNIC/Passport No. (in case of foreigner) (copy to be attached)
proxy form. Additional information and enclosures (in case of representative
iv) The proxy shall produce his/her original CINC or original passport at the time of the Meeting. of body corporate, corporation, and federal Government)
v) In case of corporate entity, the Board of Directors' resolution/power of attorney with specimen signature shall Name of Authorized Signatory
be submitted (unless it has been provided earlier) along with proxy form to the Company. CNIC/Passport No. (in case of foreigner) of Authorized
Signatory (copy to be attached)
7. Transmission of Financial Statements to the Members through e-mail Resolution For Agenda Item No: 5
Pursuant to Section 223(6) of the Companies Act, 2017, the Company is allowed to send Audited Financial To consider, and if deem fit, to pass with or without any amendment/modification the following resolution as special resolution, to obtain consent from
the members for the transmission of annual audited account through QR enabled code and weblink, as allowed under S.R.O. 389 (I)/2023 issued by
Statements, Auditor's Report and Director's Report through e-mail to the members of the Company. Members the Securities and Exchange Commission of Pakistan.
desiring to avail this facility may provide the requisite information to the Company Share Registrar, M/s. CDC
Share Registrar Services Limited, CDC House, 99-B, Block-B, S.M.C.H.S., Main Shahrah-e-Faisal, Karachi. Resolved That, notice of meeting shall be dispatched to members as per requirements of the Act, on their registered address, containing the QR code
and the weblink address to view and download the annual audited financial statements together with the reports and documents required to be
annexed thereto under the Act.
8. Transmission of the Annual Audited Financial Statements through CD/DVD
The Company has circulated financial statements to its members through CD at their registered address. Resolved That, the Company shall be considered compliant with the relevant requirements of section 223(6) of the Companies Act, 2017 by sending
Printed copy of above referred statements can be provided to members upon request. Request form is available the Audited Financial Statements through e-mail and/or sending a notice of meeting containing a QR code and the weblink address. In case a hard
on the website of the Company i.e. www.adamjeelife.com copy of Audited Financial Statements and/or Notice of AGM of the Company is desired, a specific request for the same will be made.

Further Resolved That the Chief Executive Officer/Chief Financial Officer/Company Secretary be and is hereby authorized to do all necessary acts,
9. Applicability of Postal Ballot Regulations deeds and things in connection therewith and ancillary thereto as may be required or expedient to give effect to the spirit and intent of the above
In accordance with the Companies (Postal Ballot) Regulation, 2018, ("the Regulations") the right to vote through resolution.
electronic voting facility and voting by post shall be provided to members of every listed company for, inter alia, Resolution For Agenda Item No: 6
To ratify and approve transactions conducted with Related Parties by passing the following special resolution with or without modification:
all businesses classified as special business under the Companies Act, 2017, ("the Act") in the manner and "Resolved That the transactions conducted with Related Parties as disclosed in the Statement of Material Information under Section 134 (3) be and
subject to conditions contained in the Regulations and as laid down below. are hereby ratified, approved and confirmed."
For agenda 5, 6 and 7, the information as required under section 134(3) of the Companies Act, 2017 is annexed.
Procedure for E-Voting Instructions For Poll
a) Details of the e-voting facility will be shared through an e-mail with those members of the Company who 1. Please indicate your vote by ticking ( ) the relevant box.
have their valid CNIC numbers, cell numbers, and e-mail addresses available in the register of members of 2. In case if both the boxes are marked as ( ), you poll shall be treated as “Rejected”.
the Company by the close of business on April 17, 2024. I/we hereby exercise my/our vote in respect of the above resolution through ballot by conveying my/our assent or dissent to the resolution by
b) The web address, login details, and password, will be communicated to members via email. The security placing tick ( ) mark in the appropriate box below;
codes will be communicated to members through SMS from the web portal of CDC Share Registrar Services I/We assent to the I/We dissent to the
Limited (being the e-voting service provider). Resolution Resolution (FOR) Resolution (AGAINST)
c) Identity of the Members intending to cast vote through e-voting shall be authenticated through electronic Agenda Item No: 5
signature or authentication for login. Agenda Item No: 6
d) Voting lines will start from April 22, 2024, 09:00 a.m. and shall close on April 24, 2024 at 5:00 p.m. Members
Notes:
can cast their votes any time in this period. Once the vote on a resolution is cast by a Member, he / she shall
not be allowed to change it subsequently. 1. Dully filled ballot paper should be sent to the Chairman Office No. 505, 5th Floor, Islamabad Stock Exchange Towers, 55-B, Jinnah Avenue, Blue
Area, Islamabad or email at [email protected]
2. Copy of CNIC/ Passport (in case of foreigner) should be enclosed with the postal ballot form.
10. Procedure for Voting By Post 3. Ballot paper should reach the Chairman within business hours by or before Wednesday April 24, 2024. Any postal ballot received after this date, will
a) The members shall ensure that the duly filled and signed ballot paper, as per the enclosed format, along with not be considered for voting.
a copy of Computerized National Identity Card (CNIC) should reach the Chairman of the meeting through 4. Signature on ballot paper should match with signature on CNIC/ Passport. (in case of foreigner).
5. Incomplete, unsigned, incorrect, defaced, torn, mutilated, over written poll paper will be rejected.
post at the Company's registered address, Adamjee Life Assurance Company Limited, 3rd & 4th Floor, 6. In case of a representative of a body corporate, corporation or Federal Government, the Ballot Paper Form must be accompanied by a copy of the
Adamjee House, I.I Chundrigar Road, Karachi, Pakistan or email at [email protected] one day CNIC of an authorized person, an attested copy of Board Resolution, / Power of Attorney, / Authorization Letter etc., in accordance with Section(s)
before the AGM, i.e., on 24th April 2024, before 5:00 p.m.. A postal ballot received after time cutoff date/ time 138 or 139 of the Companies Act, 2017 as applicable. In the case of foreign body corporate etc., all documents must be attested by the Counsel
shall not be considered for voting. The signature on the Ballot Paper shall match with signature on the CNIC. General of Pakistan having jurisdiction over the member. Ballot Paper form has also been placed on the website of the Company at:
www.adamjeelife.com
b) This postal Poll paper is also available for download from the website of Adamjee Life at 7. Ballot Paper form has also been placed on the website of the Company at: www.adamjeelife.com. Members may download the Ballot paper from
www.adamjeelife.com or use the same as published in newspapers. Please note that in case of any dispute the website or use an original/photocopy published in newspapers.
in voting including the casting of more than one vote, the Chairman shall be the deciding authority.

Date:
Shareholder / Proxy holder Signature/Authorized Signatory
(In case of corporate entity, please affix company stamp)

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 Annual Report 2023 Annual Report 2023

Annexed To The AGM Notice

Statement of special business under section 134(3) of the Companies Act. 2017 Statement under Regulation 4(2) of the Companies (Investment in Associated Company), Regulations 2017
The Company in its Annual General Meetings held on 27th April 2023 had approved equity investments of up to PKR
Agenda Item No 5: Transmission of Annual Report through QR enabled code / Weblink 15 Billion in ordinary shares of its associated companies namely, DG Khan Cement Limited, MCB Bank Limited, and
Nishat Mills Limited. The resolutions are valid for a period of five years
The Securities and Exchange Commission of Pakistan vide its S.R.O.389 (I)/2023 dated 21st March 2023, while
considering technological advancements and obsolesce of old technologies, has allowed the listed companies to
circulate the annual audited financial statements together with the Directors' and Auditors' reports thereon and Ref No. Requirement Information
Chairman’s Review Report to its members through QR enabled code and web link instead of CD / DVD / USB,
subject to the conditions specified there for. Consent of the members is sought for transmission of the annual audited i. Total Investment approved Name of associated Total investment Date of last
financial statements of the Company via QR enabled code and web link. company approved approval
D G Khan Cement PKR 5,000 million April 27,2023
It is important to mention that a printed version of the audited financial statements will be provided to members on Company Limited
their request without any charge, and no change in that right/privileged is being proposed. MCB Bank Limited PKR 5,000 million April 27,2023
Nishat Mills Limited PKR 5,000 million April 27,2023
Agenda Item No 6: Ratification of Related Party Transaction
ii. Amount of Investment made to date Name of associated Total investment
Transactions conducted with all related parties have to be approved by the Board of Directors duly recommended by company to date
the Audit Committee on quarterly basis pursuant to clause 15 of the listed Companies (Code of Corporate D G Khan Cement Company PKR 1,247 million
Governance) Regulations, 2019. Limited
MCB Bank Limited PKR 1,718 million
However, during the year since Company's Directors were interested in certain transactions due to their common
directorships in the associated companies, therefore, common directors did not participate for approval of these Nishat Mills Limited PKR 604 million
transactions pursuant to section 207 of the Companies Act, 2017. Accordingly, these transactions are being placed
iii. Reasons for deviations from the Reason for deviating relates to a combination of both external
before the AGM for the formal approval ratification by shareholders. All transactions with related parties to be ratified
approved timeline of investment, and internal factors. External factors include economic and
have been disclosed in the financial statement for the year ended December 31, 2023. Transaction-wise details of
where investment decision was to political situation, relevant sector outlook and stock financial as
such related party transactions are given below:
be implemented in specified time well as recent price performance. Internal factors relate to equity
strategy based on above external as well as other factors and
regulatory or risk management limits that can effect timing of
Name of Relationship Transaction Approval
Transaction description investment.
related party with the company value / ratification
iv. Material change in financial None.
Annual Rental
Rental Premises – Head Office – Approval for the statements of associated company
Amounts 69
Adamjee Fully Furnished 3rd & 4th Floor Renewal of or associated undertaking since
Million in 1st
Insurance with total area of 31,900 sq.ft, Contract in date of the resolution passed for
Parent Company Year with
Company Adamjee House, I.I Chundrigar November 2024 approval of investment
escalation of
Limited Road, Karachi. 12.5% every for 5 years term
year

The Company carries out transactions with its related parties on an arm's length basis as per the approved policy
with respect to “transactions with related parties”. All transactions entered into with related parties require the
approval of the Board’s Audit Committee of the Company, which is chaired by an independent director of the
company. Upon the recommendation of the Board’s Audit Committee, such transactions are placed before the Board
of Directors for approval.

260 261
 Annual Report 2023 Annual Report 2023

Adamjee Life Assurance Company Limited

Proxy Form

I/We
of
Being a member of Adamjee Life Assurance Company Limited hereby appoint
Mr.
of
or failing him
of
as my/our proxy in my/our absence to attend and vote for me/us and on my/our behalf at the 15th Annual General
Meeting of the Company to be held on Thursday April 25, 2024 at 11:00 a.m. and at any adjournment thereof.

Signed this ______________ day of ______________ 2024.

Witnesses:
1. Signature: ______________________
Name: ______________________ Revenue
Address: ______________________ Stamp
______________________
CNIC Or
Passport No: ______________________
Signature of Member(s)

Witnesses:
2. Signature: ______________________ Shareholder’s Folio No. _____________
Name: ______________________ and/or CDC
Address: ______________________ Participant I.D.No. _____________
______________________
CNIC Or
Passport No: ______________________

Important:
This form of Proxy, duly completed, must be deposited at the Company’s Principal Office at 3rd and 4th Floor,
Adamjee House, I.I. Chundrigar Road, Karachi not later than 48 hours before the time appointed for the meeting.

262 263
 Adamjee Life Assurance Co. Ltd.
Head Office: 3rd and 4th Floor, Adamjee House, I.I.Chundrigar Road, Karachi - 74000.
+92 (21) 111-11-5433 +92 (21) 38677100, 37134900 +92 (21) 38630011 www.adamjeelife.com