Insurance Companies on KSE - 1993

Article excerpt

The insurance market in Pakistan over the last few years is characterized by a high degree of over capacity. While the potentials for growth do exist, public awareness to the need for insurance protection remain very low.

There are 32 companies on the list of Karachi Stock Exchange. Out of which the Annual Report of Ittefaq Insurance, Khyber Insurance and Pakistan Northern Insurance were not available at the time of preparation of this report. The total Paid-up Capital of the remaining 29 companies stood at Rs. 784.96 million and Free Reserves and Surplus stood at Rs. 1167.96 million. The General Break-up Value per Rs. 10/-worked out to Rs. 24.88. The high Break-up Value of companies in the descending order were as follows:-

Break-up Value per Rs. 10/-

                           1993          1992

Central Insurance         71.72         51.68
Pakistan Ins. Corp.       55.25         41.56
International Gen. Ins.   41.84         46.42
Adamjee Insurance         32.79         30.19
Century Insurance         27.83         17.67
New Jubilee Insurance     23.08         21.37
E. F. U.                  20.66         29.86

It will be seen from the above table that out of above 7 companies 5 companies showed increase in their Break-up Value over the previous year, while International General Insurance and EFU showed a decrease mainly due to increase in its Paid-up Capital over the previous year.

Earning Per Share: The highest Earning per share was at Rs. 26.68 of Pakistan Insurance Corporation, followed by Central Insurance at Rs. 15.63 and Adamjee Insurance at Rs. 11.64. The following table illustrates the Earning Per Share of seven companies in the descending order:-

                             1993          1992

Pakistan Ins. Corp.         26.68         22.15
Central Insurance           15.63         18.53
Adamjee Insurance           11.64         11.38
E. F. U.                     6.73          6.95
International Gen. Ins.      6.42          8.59
Reliance Insurance           5.09          4.05
Muslim Insurance             4.49          4.31

Dividend: Out of 32 companies, 16 have paid dividend/bonus shares during the year under review. …