UNIVERSITY OF

THE PUNJAB
LAHORE

ON ASKARI GENERAL INSURANCE

Submitted To ; Sir Muhammad Irshad

Submitted By ; Sajjad Hussain

Mi08MBA019
My overall experience of preparing this report was a knowledgeable journey. I learn a lot
about the functions of Askari General Insurance Company. Apart from this, by actually
conducting this report, I also learnt practical application of what I have been studying in
overall M.B.A.
For completing this project I required the annual reports (3 years) of not only Askari
General Insurance company, but also of some other insurance companies which are
benchmark at this time in the industry in order to estimate the industrial profile, business
processes and SWOT analysis. I got my required data from websites of insurance
companies and from newspapers.
While conducting this report I faced some problems in getting the data as at websites data
is not managed very well. The knowledge of what I have studied in MBA also came in
handy. Once every thing was found out it got very interesting.
 “I dedicate this work of mine to

my Teachers, My Parents and to

all My Friends, who truly help and

guide me in completing this

project. “
I am grateful to Allah almighty, for enabling me to fulfill this tiring, but
interesting job for the completion of my repo

The long and arduous task of developing this report was made easier by the help
and guidance of my teachers Dr.Khwaja Amjad Saeed, Mr. Irshad and as well
as Mr. Fida Hussain Bukhari.The whole practice of collecting material for the
report compiling and composing was enjoyable.

I would not be going justice in presenting this report without mentioning the
people around us who have been inextricably related with the completion of this
report.
I extend my deep gratitude and heartiest thanks to my teachers and Coordinator
for preparing this report.
Internship experience is very important and helpful before anyone goes looking for a job.
Employers want people who have experience. Internship gives students the opportunity to
grow, academically and personally. When anyone initially starts out he is going to be
doing the menial repetitive task that every new person had to do. However this is not
necessarily negative as it teaches the person responsibility at the smallest level.
Askari Insurance Company has 19 branches in Pakistan in 15 Cities and main objective is
to provide its customers with safe, secure and reliable service through wide range of
products. The report covers all the product information provided by the Askari insurance
company: Profile of Askari insurance Company, in this regard I tried to given the
information of Askari insurance company. . In the profile of the company I am trying to
giving all the possible available information of the Askari Insurance Company. Company
business process, in this section I tried to elaborate all the functions that are performed by
each department of Askari Insurance company and as well as discuss about the key
products of the Askari insurance Company that are highly involved in the progress of
company. SWOT analysis of company, in the section, I humbly stated the strength and
weakness and as well as opportunity and threats of the organization. It very difficult to
pin out weakness of the AGICO but I tried our level best in this regard. Problems and
recommendations, in this portion of the report I discuss about some problems and as well
as give some suggestions and recommendations to over come these problems. It might be
helpful for the AGICO. I believe that this report will provide some very important
information regarding my departments (Claim department, Underwriting department,
Marketing department and Accounts). I also describe my experiences in these
departments and I am sure it would be helpful for all. Underwriting and other is claim
department. That’s why, Branch Manager to be found having more consideration on these
department and personally to look after very carefully. The SWOT analysis is covered in
the report to show the standing of the company in the recent market.

Introduction of Askari General Insurance

Company

Askari general insurance co. ltd (Agico), established in October 1995, was
sponsored by Army Welfare Trust (AWT), Askari Commercial Bank ltd (ACBL)
and Askari Leasing Ltd (ALL). It is a public limited company, listed on all three
Stock Exchanges of Pakistan i.e. Karachi, Lahore and Islamabad. The Company
provides general insurance products and services to all sectors of the market.

The company has earned itself a reputable place amongst top players of insurance
industry. Agico's financial strength and rapid growth has been achieved through
its policy of retaining and reinvesting a large part of the profit to strengthen the
Paid Up Capital and Reserves. The company's financial position provides security
to the clients and ensures progressive return to the stakeholders.

Agico transacts all classes of non-life insurance business. It holds a strong

position in Health Insurance and is the leader in it's expansion. The company has
a large base of prestigious Pakistani and multinational clients being served
through a network of 16 Branches spread all over the country. Human resource is
the main stay of the company and is imposing for its highly qualified and
entrusted staff. The company is committed to create insurance awareness and
 promote insurance culture through its highly motivated and dedicated team of
professionals.

VISION

The Vision of Askari general insurance company is to be amongst the leading

insurance companies of the country with the clear perception of upholding the
principles of corporate governance and making Agico a profitable and growth
oriented insurance company while creating insurance awareness and culture.

MISSION
The Mission of Askari insurance Company is to become a leading company by
providing client friendly services through highly motivated team of dedicated
professionals and ensuring progressive return to the stakeholders

PHILOSOPHY

1. Excellence in Service
2. Quality Performance
3. Product Innovations

 Agico believes in the phrase “customer comes first”. AGICO objective is to please
their customers by fulfilling the insurance needs as best as possible. They believe in
placing the client at the center of business and all of the products and services.
 Service excellence is one of the objectives of AGICO.
 AGICO strives continually on the development of new areas of activities to
distinguish itself in the market place along with traditional insurance Companies
activities.
 AGICO objective is the complete automation and computerization of all of its
insurance activities.
 AGICO Training and Development program of its employees is aimed at developing
skills of its employees. It makes positive contribution to the service culture of the
insurance system as a whole.

Under the strong leadership and management of Lt.General(retd) Imtiaz Hussain

Askari Insurance company has achieved success in a short period of time. During the
last few years it has assumed a brand new identity plied with a spurred vision. The
board and management of the Askari insurance company have implemented strategies
and policies to carve a distinct position for the Askari Insurance Company in the
market place. The Askari Group, a paragon of strength has played a pivotal role in
helping the Insurance Company.

Chairman

Lt. Gen. (Retd) Imtiaz Hussain

Directors
Maj.Gen.(Retd.)Saeed Ahmad Khan
Brig. (Retd) Javed Qayum
Mr.Abdul Waheed
Brig. (Retd).Mushtaq Ahmed Malik
Syed Suhail Ahmed Rizvi
Mr. Abdul Hai Mahmood Bhaimia
Audit Committee
Mr. Abdul Waheed
Chairman
Brig. (Retd) Mushtaq Ahmad Malik
Member
Mr. Syed Suhail Ahmed Rizvi Member

Auditors

KPMG Taseer Hadi & Co.

Chartered Accountants

Legal Advisor
Mr. Farrukh Karim Qureshi

Bankers
Askari Commercial Bank Limited
Arif Habib Bank Ltd.
Habib Bank Ltd.
Standard Chartered Bank Ltd.
Soneri Bank Ltd.

Registrar and Share Transfer Office

THK Associates (Private) Limited,

Ground Floor, State Life Building-3
Dr.Ziauddin Ahmed Road, Karachi
Tel: 111-000-322
Fax: 021 - 5655595

Registered Office/Head Office

4th Floor, AWT Plaza, The Mall, Rawalpindi, Pakistan
Tel: 051 - 9272425 - 7
Fax: 051 - 9272424
Web Site: www.agico.com.pk
e-mail: agicoho@agico.com.pk
President & Chief Executive

Mr. Mohammad Hussain Hirji

Executive Vice Presidents (Marketing)

Syed Hassan Nadeem
Rana Shahbaz Ahmed

Senior Vice Presidents

Mr. Muhammad Afzal (H.O)

Engr. Ehtesham Malik (Engineering)
Sheikh Abdul Qayyum (Claims)
Mr. Muhammad Iqbal (Reinsurance)
Mr. Waseemullah (Company Secretary/CFO)
Mr.Najam Irshad

Senior Vice Presidents (Marketing)

Ch. Shams-ul-Haq
Mr. Shah Saud Mirza
Mr. Sarfraz Ahmed Tarrar
Vice Presidents

Maj. (Retd) Muhammad Ajmal Khan

Mr. Ali Munem Shamsi
Mr. Sohail Khalid
Mr.Jamil Ahmed (C.A)

Vice Presidents (Marketing)

Mr. Mubashir-ul-Hassan
Mr. Tahir-ul-Haq
Sh.Muhammad Hanif
Sh.Abdul Wahab

Assistant Vice Presidents

Mr. Ghulam Ashgar

Mr. Waqas Ahmed

Mr. Sohail Younas

Assistant Vice Presidents (Marketing)

Mr.Ikram Zai
Mr.Moeenuddin

Managers
Mr. Tazeem Hussain
Mr. Gulzar Hussain Shah
Syed.Imran Abid (I.A)
Mr.Noor Afsar
Mr.Gulfraz Anis
Mr. Muhammad Ali Soomro
Islamabad

11 West, Jinnah Avenue, Blue Area, Islamabad.

Tel: (051)2279565, 2270471-2,
Fax :( 051)2279566
Email: agicoisb@agico.com.pk

Rawalpindi

National Business Center, Murree Road, Rawalpindi.

Tel: (051)9290489, 9290499
Fax: (051)9290479
Email: agicorwp@agico.com.pk

Jhelum

1st Floor, Soldier Plaza, Civil Lines, Jhelum.

Tel: (0544)9270339
Fax: (0544)9270374
Email:agicojlm@agico.com.pk

Sialkot

1st Floor, Oberoi Cooperative Building, Paris Road, Sialkot.

Tel: (052)4582381
Fax :( 052)4582382
Email:agicoslt@agico.com.pk

Gujranwala
1st floor, Al-Azahar Plaza opp.Iqbal high school Ghala Mandi,G.T
Road,Gujranwala.
Tel: (0431)3856324, 3734326
Fax :( 0431)3856325
Email:agicogrw@agico.com.pk

Lahore

3rd Floor, Al Malik Plaza, 19 Davis Road, Lahore.

Tel: (042)6308633-4
Fax: (042)6308635
Email:agicolhr@agico.com.pk

Faisalabad

2nd Floor, Platinium Centre, Kotwali Road, Faisalabad.

Tel: (041)645802-4
Fax :( 041)645801
Email: agicofsd@agico.com.pk

Multan

2nd Floor, Jalil center, Abdali Road, Multan.

Tel: (061)547842
Fax :( 061)547862
Email: agicomtn@agico.com.pk

Hyderabad

1st Floor, Gul Centre, Thandi Sarark, Hyderabad

Tel: (0222)729689
Fax :( 0222)783976
Email:agicohyd@agico.com.pk
Karachi (021)

3rd floor ,AWT Plaza

I.I Chundrigar Road, Karachi.
Ph:2273513-5,Fax:2214332
e-mail: agicokch2@agico.com.pk

Quetta (081)

1st Floor,Taj Center,

Jinnah Road ,Quetta.
Ph: 28379822,Fax :2837944
e-mail : agicoqta@agico.com.pk

Sargodha (0483)

43-44,Rehman business Center,

2nd Floor, University Road, Sargodha.
Ph: 3768559-61, Fax :3768579
e-mail : agicosgd@agico.com.pk
Abbotabad (0992)

Room -10,Silk Plaza,

Mansehra Road , Abbbotabad.
Ph: 342439
e-mail : agicokabt@agico.com.pk

Peshawar (091)

6th Floor,State Life Building,

The Mall,Peshawar Cantt.
Ph: 5284768,5272058, Fax :5284769
e-mail : agicopsc@agico.com.pk

Bahawal Pur (0622)

2nd Floor ,Shahab Plaza,

Chowk one unit,Bahawal Pur.
Ph: 284201, Fax :284203
e-mail : agicobwp@agico.com.pk
Web sites
 www.Agico.com.pk

 www.google.com

 www.efuinsurance.com

News papers
 INSURANCE JOURNAL
 www.dawn.com

 www.nation.com.pk

Books
 Principals of Insurance(ACII)
 Claim Management(ACII)
 Marketing(ACII)
 Motor Insurance(ACII)
 PERSONNEL HIERARCHY IN AGICO

Branch Manager
NAME MR. TAHIR AHMED
DESIGNATION BRANCH MANAGER OF LHR
QUALIFICATION M.A Economics, MBA.
EXPERIENCE 10 YEARS
ASSIGNMENTS TO LOOK AFTER THE BRANCH OVERALL PROGRESS
AND TO MEET THE ASSIGNING SET TARGETS.

Claim Department

NAME Mr. Ramzan

DESIGNATION CLAIM MANAGER
QUALIFICATION M.B.A
EXPERIENCE 3YEARS
ASSIGNMENTS TO HANDLE THE CLAIM DEPARTMENT AND
IDENTIFY THE VALIDITY OF LARGE CLAIMS

Accounts Department

NAME MR. RAZA

DESIGNATION Account Officer
QUALIFICATION M.B.A.
EXPERIENCE 4 YEAR
ASSIGNMENTS MANAGE BRANCH ACCOUNTS
UNDERWRITING DEPARTMENT:

NAME MR.Nasir
DESIGNATION UNDERWRITER
QUALIFICATION M.B.A
EXPERIENCE 4 YEAR
ASSIGNMENTS ISSUE INSURANCE POLICIES

MARKETING DEPARTMENT:

Marketing Manager:

NAME MR. AZHAR MURAD

DESIGNATION OPERATION OFFICER
QUALIFICATION M.COM
EXPERIENCE 35 Years
ASSIGNMENTS HANDLE THE MARKETING DEPARTMENT AND
ACHIEE SET TARGET.

Vice Marketing Manager:

NAME MR. FAROZ

DESIGNATION ASSISTANT MARKETING MANAGER
QUALIFICATION M.B.A
EXPERIENCE 8 Years
ASSIGNMENTS TO ACHIEVE SET TARGET

ASKARI GENERAL INSURANCE COMPANY

DEVIS ROAD LHR:
TRAINING PROGRAM
During internship-training program of Hailey Collage of Banking and Finance I worked
in Askari Insurance Company for 6 weeks. Fortunately I had the advantage of working in
the very friendly atmosphere branch of Askari Insurance Company. Here I had the chance
to learn a great deal.
During the training I worked in different departments of the Askari insurance company. I
was able to get a complete idea of the working of a insurance company. It was a very
knowledgeable experience.
In the following pages I have explained the working of various departments in which I
worked during the period of training. I am very grateful to the officers of Askari
Insurance Company who helped me during the training in understanding various aspects
of insurance company as well as after training in the preparation of Internship Report.

DEPARTMENTS

(1) Underwriting Department

(2) Accounts Department
(3) Claim Department
(4) Marketing Department
In the early days of marine insurance, the details of a ship or cargo to be insured would
be described on a slip. This slip would be taken to Lloyd's and the person who was to
carry the risk would read the details and then sign the slip under the details of the risk. In
this way the person carrying the risk became known as the underwriter. The underwriting
process is far more complicated nowadays but the term still applies.
When we looked at the nature of insurance we take it as a common pool. The
contributions of many people were made to the pool and the losses of the few were met
from it. In essence the task of the underwriter is to manage this pool as effectively and
profitably as he can. Thinking of the role of the underwriter in this way we could say that
he has to:
Assess the risk which people bring to the pool;
Decide whether or not to accept the risk or how much to accept;
Determine the terms conditions and scope of cover to be offered;
Calculate a suitable premium

HAZARD
The first task of the underwriter is to assess the risk which person brings to the common
pool. There are various definitions of risk and a number of different associated terms.
One of the terms we examined was hazard. We differentiated hazard from peril by saying
that peril was the event giving rise to the loss itself, such as collision, fire, theft. Hazard
was the factor which might after the frequency or severity of the peril.
Underwriter has the task of assessing the hazard which is associated with the various
perils brought to the common pool. There are two aspects of hazard, physical and moral
with which the underwriter is concerned.

THE UNDERWRITING PROCESS

The actual process by which risks are underwritten will vary from one class of business
to another and will also depend on an insurer’s general approach. Underwriting in a
general sense in relation to personal insurances, life assurance and commercial
insurances.

PERSONAL INSURANCE
The underwriting of personal insurances is relatively straightforward. The main source of
information abut a risk will come from the proposal form and if there is anything else
which an individual underwriter may want, he would write to the proposer. A large
volume of proposal forms for various classes of personal insurance will be dealt with by
branch offices of insures. Much of the work will be mechanical in nature and the vast
bulk will be processed with little difficultly
In many cases the underwriting is delegated to some other person, quite outside the
insurance company. This is the case for example in travel insurance where the policy is
sold by a travel agent or airline. A proposal form is completed by the proposer and the
policy issued almost immediately from a pad of policies. Possibly with an upper
monetary limit on the sum insured. Underwriting in these cases is almost a matter of
making sure that a completely undesirable proposer is not allowed cover. There will be
little discrimination among those cases which are accepted and he brooked or other agent
will have little or no flexibility in pricing.
COMMERCIAL INSURANCE
The underwriting of commercial business insurances is a much more complicated and
involved task. Commercial insurance rang reform small shops and factories to large
multinational corporations with operations in many countries throughout the world. The
degree of complexity of the underwriting required will obviously vary with sheer size of
the risk but certain basic principles are still recognizable.
The essence of the task is that the underwriter has to evaluate the hazard associated with
the risk which is being proposed. In small cases he may be able to do this from reading a
proposal form and corresponding with the proposer. It may be that a local inspector asked
to call and see the shop or factory for himself. In large cases this is simply impossible.
For one thing the details of a risk could not be confined to a proposal from. There is just
too much information to condense on to a form no matter how large the form may be.
This is where the broker may help. As we mentioned earlier, the broker in these large
cases will be in a position to prepare the case for the underwriter. This may mean site
inspections by the broker and the preparation of the plans and reports on the relevant
aspects of the risk. This documentation, which may be extremely extensive, is then
passed to the underwriter and negotiation can commerce on the terms, conditions, cover
and price.

A RISK SURVEYS

Even where a broker is involved (and certainly when there is no broker). The underwriter
will involve a surveyor. This risk surveyor is the person who acts as
The eyes and ears of the underwriter, many companies employ specialists surveyors in
the different areas of risk such as fire, security, liability, business interruption and so on.
The surveyor will eventually prepare a report for the underwriter and in the case of many
property risks will also draw plan. The report will cover a number of features, including.

A full description of the risk. This may include the plan of the premises in the case of
property risk, the process being carried on at the premises, details of the insured etc.
An assessment of the level of risk. This will take into account all the relevant hazard
factors, both moral and physical, and provide the underwriter with some idea of the
degree of risk which he is being asked to accept. The surveyor will also be able to
comment on surrounding property as in the case of fire insurance, for example, this may
have an impact on the level of risk.

A measure of maximum probable loss (MPL). This MPL, or estimated maximum loss
(EML) as is known by some, is the maximum that the surveyor believes will be the
subject of a loss.
This MPL calculation takes no account of any good features which may be present. The
underwriter must then consider the impact of good features and may reduce the MPL. In
a fire risk the underwriter may take account of fire lighting apparatus of various kinds
such as automatic sprinkles.
One point the surveyor would have to remember is that MPL, he has just calculated is
only for fire damage. The building could, for example, be in the flight path for a major
airport and run the risk of being destroyed by aircraft.
Dividing walls would be little calculating MPLs is to give the underwriter an idea of the
maximum which is likely to be lost.
Recommendations on loss prevention. The surveyor will also make known to the insured
what steps should be taken to protect the risk. In a few cases these recommendations will
be in the form of requirements which the insured must implement if cover is to be
granted.
The surveyor’s view on the adequacy of the insurance being requested. In all of this the
responsibility for ensuring that the cover is adequate, rests with the insured. He may seek
advice from a broker or other expert but at the end of the day he will have to satisfy
himself that the insurance are adequate.

Adequacy, in the case of many classes of insurance will mean the sum insured. This will
be true for many classes of property insurance. In the case of liability insurance there is
of course no sum insured, but a limit of indemnity. Adequacy in thee cases will mean a
limit of indemnity large enough to cater for the expected claims. The adequacy of cover
is an extremely important issue and the underwriter will want to ensure, as far as is
possible. That the insured is not under insuring the risk.
Assuming that the risk is acceptable in all matters relating to the level of hazard, the
decision as to how much of a risk can be accepted is, in part, dependent on the financial
capacity of the insurer. The insurer may have some limit on how much of a particular
type of risk it wants to accept in any year. Questions relating to the financial capacity of
the insurer, lead us into the area of reinsurance.

PREMIUMS
Tasks of the underwriter as:
Assess a risk which people bring to the pool;
Decide whether or not to accept the risk or how much to accept;
Determine the terms; conditions and scope of calculate a suitable premium.
So far we have looked at the role of the underwriter, the underwriter process itself and the
part played by reinsurance. These have examined, in their different ways, the way in
which risks are accepted insurers and the financial steps which insurers take to protect
themselves. Insurance Companies have two final aspects the insurance transaction to
examine. The first, which business of pricing and praying for the insurance service and
the second is the making of claims.
The last task of the underwriter was to calculate a suitable premium. The premium which
an insured pays represents that insured’s contribution to the common pool. This
contribution must be fair and must reflect the degree of hazard which that insured brings
to the pool. In other words the premium must be sufficient to:

Cover Expected claims

The insurer is in a position to estimate the level of claims which it expects. It is not
possible to say exactly how much is to be paid out in claims but because of the numbers
involved the insurer can make a reasonably accurate assessment of the likely loss costs.
At the very minimum the premium must be sufficient to meet these expected claims.

Create an estimate for outstanding claims

Not all claims will be settled during the year for which the premium has been paid and
hence the premium must take into account those claims still to be settled at the end of the
year. This is particularly true in the case of claims involving personal injury. They can
take several years to settle and the insurer must bear them in mind when calculating the
premium.

Provide a reserve
The insurer must also take into account the fact that there can be contingencies, beyond
their control, which may involve a liability to meet claims at some time in the future.
Insurers do this by making reserves.

Meet all expenses

The insurer has a number of operational expenses to meet in the running of the business.
These include:
Salaries to staff;
Office costs of all forms’
Advertising;
Commission.
The premium collected from each insured must be sufficient in aggregate to cover these
costs of operating.
Provide for profit
Finally, the insurer must ensure that there is provision for a reasonable profit. The
majority of insurers is answerable to shareholders and must provide a reasonable return
on the investment which these shareholders have made in the company. In the case of
mutual companies, the members will still be looking for
a reasonable surplus being made in order to meet the objectives of the mutual.
Arriving at the premium, however, is not simply a matter of calculating the correct
premium by a mathematical formula. A number of important commercial considerations
must also be borne in mind. These will include:

Inflation
The insurer must be aware of the changing value of money. Claims will be met
tomorrow, out of premium received today. The implication of this is that the cost of
settling a claim may rise, not due to any increase in the magnitude of the claim itself, but
simply due to the all insurer can not ignore in their premium calculations.

Interest rates
We have already seen that insurers are major investors of funds. These funds generate
substantial investment income upon which insurers depend. Variability in interest rates
has also to be taken into account in premium calculations.

Exchange rates
We have also seen that a substantial volume of premium income is derived from outside
of the United Kingdom. Whenever there is movement of money across national borders,
there is the added problem of exchange rate risk. The insurer has to take account of this
risk and the cost of managing it has to recover through the premium which insured’s pay.
UNDERWRITING PERFORMANCE

Rupees in million
2009 2009
Fire & Property Damage

Gross Premium 295 248

Net Premium Revenue 67 49
Net Claims 12 18
Underwriting profit 17 19
Marine, Aviation & Transport

Gross Premium 55 62
Net Premium Revenue 50 39
Net Claims 12 8
Underwriting profit 38 23
Motor

Gross Premium 555 427

Net Premium Revenue 504 420
Net Claims 290 242
Underwriting profit 55 63
Accident and Health

Gross Premium 355 290

Net Premium Revenue 300 275
Net Claims 286 249
Underwriting profit (38) (42)
Miscellaneous and Treaty

Gross Premium 90 81
Net Premium Revenue 25 22
Net Claims 8 5
Underwriting profit 18 15
Required
Documents:
Documents required under taking insurance are as follows:

Documents and information for Motor insurance:

1. Original CNIC,
2. Details of vehicle,
3. Sum insured,
4. Registration Book,
5. Driving license,

Documents and information for Marine insurance:

1. Original CNIC,
2. L/C Number
3. Performa invoice
4. Sum Insured
5. Vessel Name
6. Port of shipment and destination

Documents and information for Fire insurance:

1. Original CNIC of Insured,
2. Type of Risk,
3. Construction class,
4. Sum insured,
5. Subject Matter of insurance,

Documents and information for Travel insurance:

1. Original CNIC,
2. Area of visit
3. Sum insured
4. Duration for insurance
5. No of persons

Documents and information for Health insurance:

1. Original CNIC of insured
2. Current health certificate
3. Type of cover required
4. On monthly or weakly basis
 I worked in UNDERWRITING DEPARTMENT for 12 days. During this short
period l learnt how to asses the risk and whether to accept the risk or not and if
accepted than on what terms and conditions and calculate suitable premium for
that risk. The premium is based on many factors like how if the risk is more
hazardous than high rate of premium is charged similarly if the risk is less
hazardous than low premium is charged. The premium that is charge for a risk
must be adequate for that risk and meet all the expense that spent on that risk like
administrative, commission, advertising and other general expenses etc.
Different software is used in agico for the calculation of premium. I learnt how to
operate that software to calculate the premium. In this way I learnt how to
premium is calculated and what types of risks covered in the policy and issue the
insurance cover note.
I got this information from Mr. Nasir was very co-operative and helpful. He taught
everything related to underwriting in a very friendly atmosphere. They were
appointed in this insurance company from few years and they were doing a very
good job. It was a very nice experience to in this department.

It
is the one of important department of an insurance company. One can have a complete
view of the functions and monthly expenses of insurance company from the accounts.
The functions of accounts department include managing controlling and recording the
inflow and outflow of cash from the daily basis to monthly and annual basis. It is very
difficult job to record all the expenditure of the company. This increase the importance of
account department in the company. The profitability of a company can be judged
through the analysis of its accounts record. Major work of account is done in company
head office in Rawalpindi.

One can have a complete picture of the different activities and expenses by sitting in
“ACCOUNTS”. From this perspective it was a knowledgeable experience for me.
On the very first day Mr. Raza who is designated as account officer. He gave me an
overall view of the various functions performed by the department.
I worked for about 6 days in Accounts. In this short period I learnt a lot not only about
the “Accounts” but also various other activities of the Insurance company. Mr. Raza who
is the in charge of the Accounts Department was very helpful and co-operative.
I learnt about various functions of the Accounts. With the help of Mr. RAZA I was able
to manage petty cash and other expenses of the branch. He was kind enough to take out
time from his busy schedule to teach me how to maintain records relating to day to day
branch expenditures. The main work of accounts is done company head office. He was
responsible for “Manage Branch Expenses and Staff Salaries” which is a tough job and I
helped him along with other internees in doing this task during the period of my
internship.
Working in this department was a very nice experience

In a real sense the claim is the tangible result of insuring. We have talked quite a lot
about peace of mind, security, freedom from worry and so on but at the end of day the
value of the cover will be judged, for most people, by the way which a claim is handled.
The actual procedure for handling claims varies according to matter such as the type of
cover, the amount of the claim and whether it is a personal or commercial claim insured.

CLAIMS NOTIFICATION
The first and most important point to make is that the notification of a claim is the
responsibility of the insured. We will see later that the insured also has certain other
duties but at the outset he has the responsibility of intimating the claim. We saw in
chapter six that one of the claim. We saw in chapter six that one of the conditions on
policies relates to the notification of claims. The insurer will want speedy notification of
the claim and will often lay down time limits within which a claim should be intimated.
The means by which claims are normally intimated is the claim form an example of a
form is shown in Appendix 1 at the end of this chapter. This is for a business premises
policy and you can see the kind of questions which are asked.
While the claim form is the main means by which insurers receive notification of claims,
it is not always used. In many cases, including large losses or losses involving a great
deal of details, the insurers would appoint a loss adjuster and we will look at the role of
the adjuster later.

CLAIM HANDLING
Small, personal claims are often dealt with by someone, other than the insurance
company. Brokers and others can have delegated authority to issue simple personal
policies. In certain cases these brokers may also have authority to handle claims. There
may be a limit on the value of claims which can be dealt with in this way but the process
is speedy and the claimant deals with the person or organization issuing the cover in the
first place.
The majority of claims, however, will be dealt with by the claims department of the
insurer. The onus is on the insured to prove that he has suffered a loss by a peril which is
insured by the policy, and this will have been done by the completion of a claim form is
most cases. The insured must also prove the value of the amount of the loss in all cases
other than those involving life assurance, personal accident or liability. The insured
cannot simply intimate a claim for a lost or damage item without proving the value of the
item. This proof could take the form of a purchase receipt, a repair account or valuation.
The point is that it is not or the insurer to prove the value of the loss.
The insurer has its own areas of responsibility, it has to ensure that:
Cover was in force at the time of the loss;
The insured is the correct insured;
The peril is covered by the policy;
The insured has taken reasonable steps to minimise the loss;
Conditions have all been complied with;
No exceptions are appropriate
The value of the loss is reasonable.
These steps can involve a great deal of work and the claims departments of companies
are often among the busiest. However, there is a limit to the number of staff which even
the largest companies could afford to have in house to deal with claims. Not only would
the cost be huge but the level of expertise required would be costly in terms of
recruitment and training.

LOSS ADJUSTERS
The alternative is to retain experts. Such experts are chartered loss adjusters. Not only are
they used for large or detailed claims but many insurance companies would retain the
services of a loss adjuster to deal with the majority of their property losses.
The loss adjuster is an expert in processing claims from start to finish. They are normally
involved at the very early stages of a claim and will see it through to the conclusion. This
will involve ensuring that all the interests of the insurer are preserved, in checking that
the cover was in force and was adequate eat the time of the loss. The adjuster will also act
to minimize the extent of the loss and is in a position to use his considerable experience
to bring about a swift settlement of the claim.
The loss adjusters would go to work, helping the insured to recover his position after
this loss and a final report would follow which would give details of what the actual loss
amounted to.

CLAIMS SETTLEMENT
The final stage in the claims procedure is the actual monetary settlement. The claim has
been notified, all parties have carried out their respective duties and all that remains is for
the claim to be settled. The actual settlement, or the amount payable, depends upon a
number of factors including: the nature of the cover; the adequacy of the cover and the
application of any conditions which
Limit the amount payable.
It is possibly easier to decide on the amount payable under a life assurance policy than
other forms of policy. The life assurance policy normally has a fixed sum assured and
both the assured and the assurer understand exactly what is to be paid and under what
circumstances it will be paid. There may, of course, be complications in specific
circumstances but in the main the amount payable is stated on the policy and is not the
subject of discussion or negotiation at the time of a claim. What we might say is that in
these cases the amount payable in the even of a claim has been determined prior to the
claim and has been stated on the policy.
Contrast this to the case of a fire claim at a factory. The policy of insurance does have a
sum insured but this is only the limit of the liability of the insurer, not the amount which
they have agreed to pay in the event of a claim. The eventual cost of the claim will
depend on the extent of loss or damage and on the nature of the
Cover afforded by the policy. In most property policies there are two kinds of cover,
indemnity or reinstatement. These are terms with which those of you who go on to
study general insurances will become very familiar.
In brief, indemnity is one of the basic doctrines of insurance which says that an insured is
to be placed in the same financial position after a loss as he enjoyed before the loss. As a
value can not be placed on a person’s life or limbs, we can say that life assurance and
personal accident policies are not assurance and personal accident policies are not
contracts of indemnity. Property and liability policies however, are. Take the case of a
fire at a factory, which present obvious problems in ascertaining which value of the loss.
A machine bought five years ago for 50,000, which has been used for all of these five
year is clearly not
Worth 50,000 today and this would not be value of the loss. Trying to place the insured in
the same financial position after the machine has been damaged, as the enjoyed before
may damage will be difficult. Where the machine is completely destroyed the measure of
indemnity would be the replacement cost less an amount for wear and tear. In the case of
partial damage, indemnity would be the repair cost less wear and tear.
Let us assume that the machine has a life expectancy of ten years. It has expended half its
life expectancy and this is a measure of the wear and tear. The cost of replacing the
machine today is 90,000. Indemnity would then behalf of the cost of replacement 45,000
and this would have to be the sum insured. Notice that this figure depends on the level of
wear and tear and the replacement cost. As replacement costs will rise each year it is
likely that the final sum insured will have to rise.
You can see how this could cause a great deal of work, and potentially, a few problems
for both the insured and the insurer.
Reinstatement, on the other hand, provides the insured with the cost of reinstatement.
This is a form of new for old cover and many household insurers use that phrase in their
marketing. Offering reinstatement avoid much of the difficulty in ascertaining the value
of a loss under an indemnity contract. In the case of the machine we used in the contract.
In the case of the machine we used in the earlier example, the insured would have to fix
sum insured at the cost of reinstatement. We know this to be 90,000 but the loss may not
happen until the last day of the insurance year. What the insured needs to calculate is the
cost of reinstatement, at the time of reinstatement, and this may be higher than the cost of
replacing the machine today. It may even be that there is a time delay in ordering new
machines of this type. All of these factors have to be taken into account.
With liability claims is a little easier to decide on indemnity. A liability policy provides
indemnity to the insured in respect of his legal liability to pay damages.

Diagrammatically, I would explain to it in the following manner:

Intimation of
After
claim
verification of
Intimation
all
normally is
documents, a
made through
disbursement
the telephone
voucher is
call or client
send to head
can directly
office and
inform the
In theis next
claim paid.
company.
step, the
required In this step
documents the surveyor
are collected is appointed
by mutual to access the
cooperation actual loss.
i.e. insurer &
insured
MEAN OF INTIMATION

Most of claims are intimated through the phone call or it’ll also make through that the
client directly came in the company and inform about the claim. When the claim is
intimated by the insured, some important information are required from the insured
person i.e. Date, name and address of the insured person, policy no, expiry date of the
policy, endorsement no (if any), make of the vehicle, engine no, chassis no, nature of
loss, name of a person with telephone number with whom the contact can be made for
any further information and estimate of loss.
After having the above information from the insured person, the further proceeding is
carried on. You can observe the claim intimation form below:

Askari general insurance co. ltd.

MOTOR CLAIM INTIMATION FORM

BRANCH OFFICE – LAHORE

Date:_____________________
ATTN: Miss Asma

Name & address of the insured___________________________________

____________________________________________________________

Policy No: MVP__________________________Date:________________

Endt. #:_____________________________________________________

Expiry Date:_____________Receipt No:___________Date:___________

Date of Expiry of previous policy, if any:__________________________

Date of intimation of loss to the branch office:______________________

Make of the vehicle:____________________Reg. No:_______________

Cause and nature of loss:_______________________________________

Place where survey is to be conducted:____________________________

Contact person with phone No:__________________________________

Name of the surveyor appointed:_________________________________

Contact No:__________________________________________________

Date:______________________Authorized signature:________________

After fulfillment of intimation form it is decided whether to conduct;

 Self survey.
  Independent survey.

Self survey:

If the estimate of loss or damage is below than Rs.10, 000, then survey will be conducted
by the staff member of ‘Askari general insurance Company’. Mostly, self survey is
conducted in order to save the expenses of the company.

Independent survey:

Normal practice to access the loss is carried on through the appointment of independent
surveyor of any surveyor company. These surveyors are experienced in assessment of
loss and assess the actual loss and try to minimize the loss in order to favors the insurance
company. But they don’t do something unfair in assessment of loss.Surveyor will survey
the vehicle at the spot of accident or at the workshop which are specified by the
company.

ASKARI GENERAL INSURANCE

SELF SURVEY REPORT

Claim No.: __________________ Int.Date:________________

Insured Name:____________________________________________
 Policy No: __________________ Expiry Date:_______________

PARTICULARS

Make: __________________ Sum Insured:_______________

Reg. No: __________________ Model:_______H, P/CC:_______

SETTLEMENT

Amount of labour Rs.____________________

Cost of parts Rs.____________________

Sub total Rs.____________________

Less depreciation @ Rs.____________________

Net payable Rs.

Cheque may please be issued in favour of ______________________

___________________________
Date & Signature of surveyor

I worked in Claim department for 12 days. During this time I realized the importance of
this department. Reputation of the insurance company largely depends upon the
efficiency of this department
Mr. Ramzan helped me a lot and gave me the above-stated information regarding claim
department. With the guidance of Mr. Ramzan. I learned how to make a claim file. In
claim department I learnt the whole procedure of claim process from claim intimation to
claim settlement. He was very friendly and helped me in every possible way. He told me
how to appoint surveyors to investigate the claim and send a complete file of claim. Than
I got knowledge how to verify the information and documents according to various
angles and after verification of documents and prices than issue the claim check.. By
working with him the claim settlement Procedure became very clear.
During work in claim department I got knowledge about various forms and their uses like
policy form, claim intimation form, accicdent report form, survey form, satisfaction note,
claim disbursement voucher, bank payment voucher etc.
They have a busy routine. There is a heavy responsibility on their shoulders to handle the
entire claim process. They took out time from there busy schedules to explain to me the
working of department.

The role of marketing generally focuses on products and services, their prices, their
promotion and the channels through which they are sold and distributed to people and
organizations that need and want them. Essential part of marketing's role today is to
match each organization's capabilities with the need of specific groups of customers in
order to achieve the objectives of both parties. Insurers have a service to sell this most be
marked in such a way as to attract consumers or potential consumers. Over the last couple
of decades there has been a substantial increase in the level of publicity undertaken by
insurers and brokers. Insurers, in particular, have embraced modern concepts in
marketing and some of their advertisements are regarded as 'classics' in their own light.
People may be familiar with the money television advertisements, for example, which
appear regularly, promoting the products available from insurance companies.
Advertising and the marketing of products is not limited to television. Insurers make
substantial use of a whole range of techniques. Marketing plays a vital role in the
transaction of insurance today.
At some point, the potential consumer has to be provided with an idea of the product
being offered, the television advertisements, bill-board, sports sponsorship etc. may all
generate interest, but at some stage the proposer will want something to read which he
can understand and which will indicate what the insurer can offer by way of protection.
In the past it may b fair to say that
The insurer presented a rather austere image to potential consumers. There was a certain
mystery about the product and the marketing message was not always
Clear. Often the only printed publicity material which was available came in the shape of
the proposal form. This is a generalization and of course there have always been insurers
who have been excellent in their marketing.

Marketing Department of AGICO:

The marketing department of Askari insurance Company has a number of marketing
professionals. They are all experts in their work. Mr.Azhar-A-Murad marketing manager
and Mr.Feroz Qaiser assistant marketing manager of in Askari insurance Company are
two main persons. Mr. Azhzr-A-Murad is one of the legends of insurance field. He has
more than 35 years experience in marketing field. Personal relations are main source for
getting premium and revenue for the AGICO. Every employee has their own relations
and they bring business for the company with their references. They participate
wholeheartedly to get the commission on revenues. AGICO provides high %age of
commission on sum insured.
 I worked in marketing department for 6 days. During this time I realized the importance
of this department. Business of the insurance company largely depends upon the
efficiency and courteous behavior of this department.
Mr. Azahr-A- Murad, who is the marketing manager and also in-charge of department,
introduced me to the rest of the staff. All of them were very helpful and I learned about
insurance marketing from them. Mr. Feroz Qaiser helped me a lot and gave me the
information regarding Marketing. With the guidance of Mr. Azhar-A-Murad I learnt how
to deal with clients and brief them about products of the company. He told me while
dealing with the clients never ever makes any false statement with the clients and you are
in a good looking dress and your behaviour must be polite with the clients. In this
department I worked with Mr. Feroz. By working with him the concept of marketing
became very clear. He told me always while dealing with the client first priority should
be given to the client interest and second to the interest of the company.
 Motor
Motorinsurance
insurance

Fire insurance
Fire insurance

Engineering
Engineering
Health
Healthinsurance
insurance Products
Productsoffered
offered insurance
insurance

Miscellaneous
Miscellaneous
insurance
insurance Travel
Travelinsurance
insurance

Marine
Marine
insurance
insurance

SWOT ANALYSIS OF AGICO

STRENGTHS
Askari insurance Company is considered to be a very sound insurance company in the
insurance market. An insurance company, where the customers can easily insured their
asset as long as they want. I am pointing some of the major strengths of the Askari
insurance company:

COMPASSIONATE CUSTOMER SERVICE

The officers of AGICO are considered as one of the most able professionals in the
insurance world (some of them are CII). However, they have added some local flavor in
accordance with their targeted segmented. I observed that they interact with their clients
as if they are their personal friends and discuss about their problems as their own.

GOODWILL & TRUST

As a result of the compassionate and personalized services of the officers, the clients’
perception for AGICO is very high. They have trust and feel themselves to be secure
while insurance with AGICO.

LOCATION
Askari Insurance Company has opened all its branches at commercial areas so that the
customers or clients face no problems in reaching to the office of the insurance company.
For example, Davis road branch being situated in business and commercial hub of Davis
road.

BRANCH NETWORK
Askari Insurance company objective has been to expand its branch network to meet
clients’ needs. Recently Company opens a new branch in Lahore to provide better
services to their clients. And, due to the growing business requirements, there are more
proposed branches in different cities. The expansion program is strategically important to
increase customer base and to approach different customer segments.
THE COMPUTERIZED SYSTEM
Askari insurance has got a reliable and easy to use internal computer system. Every
information regarding the policies and claims has been computerized. For this purpose
company designed new advanced software to improve their current procedures .In some
branches these advance software are in working.
 Askari Insurance Company is financially strong and has huge premiums.
 Its cost of expense is less as compared to many of its competitors.
 Personnel of Askari insurance are well trained and highly skilled. Majority of
employees has many years of experience in insurance sector and are an asset
for the insurance company.
 Askari Insurance Company has a network of branches at the ideal locations,
catering the insurance needs of its clients.
 Travel insurance is the focus of askari insurance company. It has become an
ideal insurance company for the travelers.
 AGICO has close relationships with their customers.
 AGICO staff is very innovate and creative.
 Askari insurance Company saved all his past record in well manner way.

WEAKNESSES
Perfection is only the claim of Allah Almighty. No other being living or dead can say this
for itself. Similarly, Askari Insurance Company also has some shortcomings that need to
be mentioned

 I observed during my internship that some of the employees were burdened

with over work. So I think that the work should be distributed according to
their post and capabilities.
 Company’s marketing department is not very strong. Advertising done by the
insurance company is less than the requirement.
  It is a step behind in using new technology as compared to other insurance
companies.
 Most of the employees are overloaded with work. There is uneven distribution
of work and promotions are not very timely.
 It is slow in the introduction of new services.
 New employees of Askari insurance company are too inexperienced.
 There is shortage of some skills persons.

OPPORTUNITIES
Askari Insurance Company has grown up its business with a very high pace and it has got
tremendous popularity, even with in a very short span of time. There are many
opportunities for the Askari insurance company and by availing that it can stand amongst
the top local insurance companies.

INFORMATION TECHNOLOGY
All the opportunities of the 21st century are to be availed in the information technology.
Information technology is the future. Therefore AGICO should emphasize much on IT,
especially the E Insurance. Askari insurance Company can design a corporate claim
philosophy like other foreign insurance companies, to enhance claim facilities.

EXTENSION OF BRANCH NETWORK

Askari Insurance company growing business requires an extensive branch network. There
are great opportunities for Askari insurance for the expansion of its business.
GROWTH IN NEW INSURANCE POLICIES
AGICO has introduced a number of new insurance covers including special travel
insurance. These covers have their unique features (discussed earlier). During the last
three years, AGICO premiums have been increasing @ 30%, which is a very healthy
sign. Therefore, with the commencement of new insurance covers there can even be a
greater increase in its premiums.
It can enhance its profitability by making use of new technology.
It has the opportunity to introduce new products and services.
It can adopt E-insurance and provide online facility to its customers.
New technology can help it enhance profitability.

THREATS
ECONOMIC CONDITIONS
Despite the difficult circumstances that confronted the insurance sector in particular and
the country in general, Askari Insurance Company has been still highly profitable. But,
the facts can’t be denied and there might be an adverse impact of such situation.

COMPETITORS
Askari Insurance Company is facing a strong competition by its major
competitors; Alfalah Insurance Company and Habib Insurance Company. Business of
these insurance companies is also growing with very high pace.So Askari Insurance
Company has been performing very well in the presence of unstable political and
economic situation but this uncertainty is a continuous threat for the insurance company.
Askari Insurance Company is facing intense competition from other local and foreign
insurance companies. Although it is ahead of many insurance companies but insurance
companies like Alfalah are a constant threat to Askari Insurance Company. There is also
chance of loss of key personnel. Continued growth of askari insurance company will
stretch them too far and lead to inefficiencies
The SWOT analysis of the Askari insurance Company signifies that its strengths
overcome its weaknesses and its opportunities are more than its threats. This is a positive
sign for any organization.

 Company is facing a high tax rate, which affects its profitability and attractiveness
for new entrants.

 Middle class and low income group have limited access to insurance policies.

 Weak internal controls, non-merit based recruitments and high administrative

costs affected the performance of insurance company.

TABLE OF DIFFERENT RATIOS

 2009 2009 2009
Leverage Ratios:
Debt Equity Ratio 57:43 57:43 47:53
Interest Cover Ratio(times) 1.52 2.00 2.52
Liquidity Ratios:
Current Ratio 51:49 52:48 49:51
Acid Test(Quick) Ratio 0.37 0.31 0.20
Efficiency Ratios:
Total Assets Turnover Ratio (Times) 1.29 1.32 1.40
Fixed Asset turnover(times) 2.01 2.07 2.40
Profitability Ratios:
Gross Profit Ratio 15.30% 12.90% 10.46%
Net Profit Ratio 2.66% 4.15% 4.21%
Inventory Turnover(times) 7.91 5.76 5.00
Return on Capital Employed 16.66% 16.48% 16.85%
Market Value Ratios:
Per Share (Rs.)
Break-up Value 22.84 26.63 32.27
Cash Dividend 0.75 0.75
Earning Per Share 2.82 4.54 5.64

VERTICAL ANALYSIS
OF AGICO BALANCE SHEET

Vertical Analysis of Balance Sheet

In Percentage
 2007 2008 2009
Assets
Cash and other equivalent 12.73 9.99 10.10
Current and other account 2.06 3.91 4.63
FIXED ASSETS-TANGIBLE -- 10.89 4.52
Furniture and fixture 22.93 23.13 20.50
Computer and office equipment 57.44 47.86 54.41
Motor vehicle 2.76 2.67 3.80
Capital work in progress 2.08 1.55 2.04
Total Assets 100 100 100
Liabilities
Share capital and reserves 1.44 1.50 1.12
Authorized share capital 8.22 2.35 3.04
25,000,000 Ordinary shares of
RS.10/- each
Paid up share capital 83.77 89.54 86.88
Share premium account 1.22 1.29 1.17
Retained earnings --- --- ---
Reserves 0.18 0.19 0.70
1.76 2.11 2.65
Accrued expenses 96.60 97.00 95.56
Taxation-provision less payments 3.40 3.00 4.44

BORROWING 1.61 1.20 1.81

Liabilities against assets subject to 0.65 0.75 0.99
finance lease
OTHER LIABILITIES 0.56 0.76 1.02
Unclaimed dividend 2.82 2.71 3.83
Others 0.58 0.29 0.60
3.40 3.00 4.44
Total Liabilities 100 100 100
TOTAL EQUITY AND
LIABILITIES

COMMENTS
ASSETS
The advances and investments constitute the major portion of the total assets. This
is typical for a insurance company, as insurance company's do not have
considerable fixed assets.The investments have been decreased and are at 20.50%
in 2009 as compared to 2009.

The portion of advances, cash, Agicoances with other insurance companys,

operating fixed assets and other assets has increased by the year.This overall
increase in the assets of AGICO is a healthy sign and shows that the business is
expanding.

LIABILITIES

On the liability side, a deposit is the major account. The percentage of deposits,
bills payable and sub – ordinate loans is decreasing.While borrowings, deferred
tax liabilities and other liabilities are increasing.

There is an overall increasing trend in the total liabilities of AGICO.Since, the

insurance company is on its way to expansion and for the purpose of expansion it
needs to have borrowing. Therefore increase in total liabilities is not that much
alarming.

EQUITIES
There is an increasing trend in share capital, reserves, inappropriate profits and
surplus on revaluation of fixed asset in the year of 2009 which indicates a good
sign for the growth of AGICO.

HORIZONTAL ANALYSIS
OF BALANCE SHEET
ASKARI INSURANCE COMPANY
 HORIZONTAL Analysis of Balance Sheet
In Percentage
2007 2009 2009
Assets
Cash and other equivalent 233.97 294.39 330.74
Current and other account 507.87 1549.47 2030.88
Deposit maturing within 12 -- 363.69 167.48
months
122.83 198.64 195.48
FIXED ASSETS-TANGIBLE
Furniture and fixture
Computer and office equipment 180.96 240.51 304.77
Motor vehicle 153.33 237.14 376.23
Capital work in progress 207.77 247.99 362.69
Total Assets 156.74 250.94 278.60
Liabilities
Share capital and reserves 184.80 308.86 255.75
Authorized share capital 96.92 44.52 63.94
25,000,000 Ordinary shares of
RS.10/- each
Paid up share capital 169.12 289.89 312.27
Share premium account 292.34 496.10 495.90
Retained earnings --- --- ---
Reserves 58.39 149.86 594.82
Accrued expenses
Taxation-provision less payments
124.63 338.69 334.08
BORROWING 158.79 255.69 279.68
Liabilities against assets subject 110.57 156.87 257.28
to finance lease
OTHER LIABILITIES
Unclaimed dividend 125 150 250
Others 127.63 234.22 347.88
89.33 195.92 293.14
Total Liabilities 88.81 72.25 166.13
TOTAL EQUITY AND 110.58 156.87 257.27
LIABILITIES

COMMENTS
ASSETS

o The level of cash has increased in 2009 as compared to 2008.

o Agicoances with other insurance companys have increased in 2009.
o Investment has decreased in 2009.
o Advances have an increasing trend in 2008 as compared to 2007.
o Operating fixed assets have showed growth in 2009.
o Other assets are also getting more in 2009 as compared to last year.

• LIABILITIES:
• Deposits have decreased in 2009 as comp0ared to previous year.
• Borrowing from other insurance companys is increasing. Although the insurance
company is on its way to expansion and for the purpose of expansion it needs to
have borrowing. Therefore increase in total liabilities is not that much alarming.
• Bills payables are decreasing.
• Subordinated loans are also decreasing.
• Deferred tax liabilities are increasing.
• Other liabilities are also increasing.

• EQUITIES
There is an increasing trend in share capital, reserves, inappropriate profits and
surplus on revaluation of fixed asset in the year of 2010 which indicates a good
sign for the growth of AGICO.

VERTICAL ANALYSIS
INSURANCE COMPANY AGICO LIMITED
 VERTICAL ANALYSIS
INCOMESTATEMENT
IN PERCENTAGE
2007 2008 2009
REVENUE ACCOUNT
Net premium revenue 43 (58.83) (71.89)
Net claims 57 41.17 28.11
Expenses 6.59 (3.28) (3.29)
Net commission 0.04 --- ---
Underwriting results (.01) (0.004) (0.007)
Investment income 6.63 3.29 (3.29)
Other income
Profit on bank deposit
Finance cost
General and admin expenses

Profit before tax

Provision for taxation
Profit after tax 37.88 24.82
PROFIT AND LOSS APPROPRIATION ACCOUNT
Balance at commencement of the year 12 9.46 8.51
Profit after tax for the year 9 0.43 0.18
Final dividend 2004(RS 1.75 per share) 3.98 2.36 1.83
Bonus share 10.19 4.12 3.96
Transfer to general reserve 47.67 18.52 15.22
BALANCE OF UNAPPROPRIATED 29.42 56.40 40.04
PROFITNAT THE END OF YEAR
Earning per share-basic and diluted
COMMENTS
 There is an increasing trend in the net markup / interest income after
provisions.
 Total non-markup / interest income is decreasing.
 Total non-markup / interest expenses also showed decreasing trend.
 Profit before taxation is also decreasing.
 Profit after taxation is also decreasing

AGICO INSURANCE COMPANY LIMITED

 HORIZONTAL SIZE ANALYSIS
INCOMESTATEMENT
IN PERCENTAGE
2007 2008 2009
REVENUE ACCOUNT
Net premium revenue 120 355.17 (750.86)
Net claims
Expenses
Net commission
Underwriting results
Investment income
Other income
Profit on bank deposit
Finance cost 159 251.48 297.27
General and admin expenses (145.45) (414.35) (801.10)
--- --- ---
Profit before tax (83.97) (122.49) (367.70)
Provision for taxation (425.89) (460.31) (799)
Profit after tax 146.5 241.96 274.31
PROFIT AND LOSS APPROPRIATION ACCOUNT
Balance at commencement of the year 169.21 290.13 451.95
Profit after tax for the year 46.90 46.43 33.38
Final dividend 2004(RS 1.75 per share) 204.89 271.50 362.20
Bonus share 64.82 18.21 30.35
Transfer to general reserve 77 125.79 159.80
BALANCE OF UNAPPROPRIATED 148.8 239.68 326
PROFITNAT THE END OF YEAR
Earning per share-basic and diluted --- (50.25) (100)
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of different risks and much other information as they required via an automated,
versatile and a straight through processing platform's would like to recommend
Askari insurance company to provide this facility to their customers as well.

 There should be central complaint cell in company in order to reduce the people’s
complaints and foster the ratio of productivity.

 Money laundering and white-collar crimes are on the rampant. Aggressive and
comprehensive mechanism should be set-up to save company

 General working conditions ought to be improved.

 AGICO needs to improve its website. More information relating to insurance

covers should be available on the website.

 Management should distribute work equally among different employees. Some of

the employees are overburdened while some sections are overstaffed.

 Askari Insurance Company needs to use more marketing channels to make the
public aware of its products and services. In the presence of intense competition
Askari insurance Company has to realize the importance of marketing.
One of the most important aims of the student life is to express him / her correctly and
adequately. This was believed in my mind when I first decided to go to Askari Insurance
Company to complete my internship program.

The company has been growing both in size and profit for past few years and has a good
repute in the market. The year 2011 is expected to offer increased competition in the
business as more insurance companies are in the market. With their focused strategy and
product development initiatives planned for the year, Askari Insurance Company is
strongly positioned to meet these challenges. The Askari insurance company has very
well repute in the market overall insurance company is going well and doing a good
business but there are few problems for that I have tried to give few recommendations
that might help company to improve. So finally this internship has helped me a lot in
gaining practical knowledge of job that will help me in the real job once I complete my
MBA.

While conducting this report I faced some problems in getting the data as at websites data
is not managed very well. The knowledge of what I have studied in MBA also came in
handy. Once every thing was found out it got very interesting.

I am very thankful to all the employees of askari general insurance company my friends
and teachers and my brother. Who all help me in the preparation of this internship report
and encouraged me.