TABLE OF CONTENT

PAGE NO. Acknowledgement Mission &Vision and Core values introduction organizational chart objectives and strategies corporate responsibility social responsibility delivering value to customers performance and financials investment income balance sheet statement of cash flows profit and loss account updated stock rates historic high & low ratios and values 2 3 4 6 7 8 8 9 11 12 15-16 17 18 19 19-20 20 21

recommendations, suggestions & conclusion

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ACKNOWLEDGEMENT

I would like to thank Almighty Allah who made me able to complete this this report by utilizing my skills and knowledge. I am also thankful for giving me spirit of patience, consistency and courage during making this report. At Adamjee insurance I would like to thank Mr. Babar zeeshan who provided me full comprehensive information during making this report

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Mission Statement:

Being the leading insurance company of Pakistan and Second best in Asia, our aim is to be a significant Participant in developing Pakistan's image by providing maximum insurance protection at the most Competitive price in a highly efficient manner for Industrial and economic growth.

Vision
"Our will is to Explore, Innovate and Differentiate. Our passion is to provide leadership to the Insurance Industry."

Core Values
Integrity Transparency & Honesty without Compromise Humility Empathy, Self Esteem and Respect in all relationships Fun at Workplace Work Life Balance Corporate Social Responsibility Service to Humanity.

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INTRODUCTION
Adamjee Group is a conglomerate based primarily in Pakistan. The group was founded by Sir Adamjee Haji Dawood (18801948) who also played a vital role in the birth of the state of Pakistan by acting as a financial advisor and supporter to Quaid-eAzam Mohammed Ali Jinnah, the founding father of Pakistan. Sir Adamjee's role as advisor gave birth to various economic institutions; the Muslim Commercial Bank (MCB), Orient Airways, and the Morning Star Newspaper. These were primarily established at the behest of Quaid-e-Azam Mohammed Ali Jinnah to win the support of the Muslims of India and facilitate them in migration to Pakistan during the partition of India in August 1947. The group has had changing fortunes over the past 50 years, initially originating as a Jute and Banking conglomerate, later spreading to other industries i.e. tea, textiles, matches, sugar, paper board, chemicals, engineering and Insurance. Enterprises under the umbrella of the group are: Adamjee Engineering Limited Chempro Pakistan Limited Adamjee Polymers Limited Adamjee Durabuilt Limited Adamjee Pharmaceuticals Limited Pacific Multi Products Limited Adamjee Diesel Engineering (Pakistan) Limited Adamjee Insurance Limited Adamjee Foundation Adamjee Automotive Limited

Over the years, the Group has diversified into different sectors, the most prominent being the jute mills, textiles and the Adamjee insurance company. Today the Adamjee name is a household name in Pakistan and Bangladesh. Continuing with Sir Adamjees philanthropic activities, his family established various learning centers and medical institutions i.e. Adamjee Eye Hospital, Adamjee Science College, Lady Mariam Adamjee Girls School, Sir Adamjee Institute of Technology, and the Adamjee High School in Dhaka.

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Adamjee Insurance Company Limited (AICL) - General Insurance Company founded in 1960 celebrated its 50 years commitment to Insurance. The Company is listed on all three stock exchanges of the country. The head office is located in Karachi and it operates a network of 34 branches in Pakistan and one in UAE (Dubai). The company commenced operations with a paid-up capital of Rs. 2.5 million, which has grown phenomenally in the past 5 decades to PKR 1.24 billion, as on Dec 31, 2010. A strong asset base, significant paid-up capital, substantial reserves, balanced portfolio mix along with steady growth in gross premium account gives Adamjee Insurance a well-deserved competitive edge within the insurance industry. Creating a Dynamic Business Environment: AICL meets customer needs by providing innovative solutions with their varied line of products. Our dedicated employees are equipped with all the necessary skills that are needed to serve our valued customers. AICL continues to strengthen and expand its regional operation by tapping the potential available in the UAE market, with the consolidation of business in Dubai. AICL with Hollard Insurance based in South Africa launched Life assurance operations through a separate entity name, Adamjee Life Assurance Company Limited.

The diversity of AICLs portfolio allows the Company to be the insurer of choice, for an array of clients and needs. Whilst expanding their customer base, AICL dedicates much effort in maintaining the highest level of customer satisfaction. Its cornerstone philosophy is to provide premium quality service along with forwarding the maximum benefit to its clients. This commitment is exhibited in the importance AICL places on excellence, integrity and ethical behavior. These values foster confidence, especially in our clients for whom security is imperative. The high level of confidence AICL inspires is evident in the number of banking and financial sector clients that AICL insures.

AICL also provides coverage to Petrochemical, Factories and Industrial Risk projects of great value. AICL specializes in insuring Engineering and Telecom concerns, hence securing the greatest share of clients in those sectors. On the other end of the spectrum, AICL services the primary industries of Pakistan by covering Textile and Sugar. Accomplishing the role as a leader in Pakistans Insurance Industry; AICL pioneered the coverage of Energy Risks. AICL has also secured the business of foreign investors entering Pakistan to execute and assemble construction or infrastructure development projects. AICL is the principal insurer of Kidnap & Ransom, Professional Indemnity, Product Liability and other specialized lines in Pakistan.
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ORGANIZATIONAL CHART

Board of Directors

Saqib Ellahi Director Arif Ijaz Managind Diector & Chief Executive

Shahzad Saleem Director Abdul Hamid Adamjee Director

Muhammad Naeem Mukhtar Director Abdul Razzak Adamjee Director

Ibrahim Shamsi Director Wasif M. Khan Director

Nasreen Rahid Deputy Managing Director

Muhammad Ali Zeb Chief Financial Officer

Taneez-ul-Haque Secretary

Senior General Managers

General Managers

General Managers(Development)

Senior Joint General Managers

Joint General Managers(Dev)

Joint General Managers

Deputy General Managers(Dev)

Deputy General Managers

Assisstant General Managers(Dev)

Assisstant General Managers Mian Muhammad Mansha Advisor Auditt Comittee

Shahzad Saleem Member Muhammad Naeem Mukhtar Member

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Objectives:
Strengthen customer relationship through customer satisfaction by providing excellent service and quality products. Maintain a healthy balance between Profitability and Volume and have a balanced portfolio mix. Increase investment returns from its growing funds and absolute return strategy. Consolidate market share through offering new products and to focus our approach in areas where our presence is small. Establish modern management system and adopting latest techniques conforming to international standards needed for an efficient organization.

Strategy:

To pursue strong growth: by adapting industry best practices and increasing economies of scale and through leveraging opportunities across the industry. Development in Human resource through training and exposure to modern technologies and management techniques. Expansion of business and improving customer relationship management through wide network of branches locally and internationally.

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Corporate Responsibility:
Our corporate responsibility focuses on compliance, ethics and corporate citizenship including overall sustainability and we have worked to advance these areas through enhanced communications, training and other initiatives.

Committed to Excellence:
We live in times of intense competition, but our key-differentiating factor is our unwavering commitment to operation and financial discipline in producing successful results, keeping our promises and meeting our customers needs.

MOTIVATION:
At Adamjee it is believed that the motivation of employees is a major factor that can bring enormous good to the organization itself. Encouraging employees to achieve short term and long term goals and helping them overcome obstacles that may be encountered on the way can motivate employees to excel to their personal best.

SOCIAL RESPONSIBILITY:
Adamjee is well known for its Adamjee Trust organization. This is an organization established by Adamjee which engages in social responsibility whenever possible. This organization donates millions of rupees each year to charity, and whenever it can lend a helping hand to the people of Pakistan, helping poverty stricken kids get an education, Adamjee Trust is by far a leading organization in Pakistan that has engaged in organizational social responsibility. Adamjee is constantly seeking actions that protect and improve the welfare of society along with its own interests. The major

QUALITY POLICY:
The management and employees of Adamjee Insurance demonstrate commitment in satisfying customer needs for managing the risk assessment in General Insurance. In alignment with satisfaction of customer needs, processes are established to support the vision and values of the Company.

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Delivering Value to Customers

AICL broadly is involved in underwriting the following classes of businesses :( core business). Fire and Property: Fire Insurance policy provides compensation to the insured person or firm in the event of damage to the property insured (i.e. buildings, stock, machinery and other contents) caused by fire, lightning. Engineering: This branch of engineering insurance offers comprehensive and adequate protection against all the risks involved in the construction of civil works of any kind, including surrounding property and third-party claims in respect of property damage or bodily injury arising in connection with the execution of a project. Health: Adamjee Insurance is one of the largest Health Insurance providers catering to the health and medical needs of the Corporate and SME sectors for their employees with customized benefits structure and value added services. ADAMJEE guarantees you best quality services that not only give you peace of mind for being insured by a leading and dependable insurer but also ensures fast and speedy access to medical services when the need arises while promoting better healthcare practices. Our customized Health insurance plans can cater for your needs. Marine: Marine Insurance covers damages to the shell and machinery of the vessel, cargo carried on the vessel, and also offers protection against liabilities to shipping and transport related companies. Motor: Motor Insurance policy is mandatory under the Motor Vehicle Act. Owing Adamjee Insurance Company Limited Motor Insurance ensures that the owner of vehicle is protected from financial losses, caused by damage or theft to the vehicle and third party liability. Retail: Pakistan's agricultural sector contributes 23.3% to Pakistan's GDP. Being the largest sector yet still widely disregarded in terms of insurance, Adamjee Insurance took an initiative to introduce the concept of Crop Insurance.
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 Miscellaneous business:
Miscellaneous class of business offers various kinds of insurance products that include Public liability, Group Health, Personal Accident, liabilities associated with employers, insurance to financial institutions and Aviation industry and many more The range of miscellaneous product is: o o o o o o o o o Group Health Insurance Personal Accident Insurance Bankers Blanket Bond Plastic Card Insurance Public Liability Insurance Professional Indemnity Insurance Event Insurance Workmen's Compensation Employers Liability Insurance

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PERFORMANCE AND FINANCIALS:

As the national economy has been experiencing many deterioration in comparison to the corresponding year. Macroeconomic stability is disturbed from unsustainable balance of payment, devaluation of currency, escalating non-food and food inflation, low mobilization of domestic and human resources cause draining productivity level ,decreasing level of investment and savings, deteriorating security situation, continued reliance on external barrowings. Even now the GDP has recorded a growth rate of 2.4% mainly due to strong performance of service sector. IN (2011) the gross premium decreased by 4% and primarily owing the loss of business in motor and miscellaneous classes of business.

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IN (2011) the net claims have decreased by 3% to 68% compared to 71% last year.Net commission and management expenses reduced by 2% to 7%.net claims improved by 115% and comparatively less than last year losses in property and crop business portfolios.

INVESTMENT INCOME:
The KSE-100 index remained low and index declined to 6%only to close at 11,348 In 2011 as compare to 12,022 in 2010.Income from investments increased from rupees 779 million to rupees 852 million in 2011.rise in dividend income and capital gains from rupees 511 million to rupees 806 million and from 96 million to rupees 367 million in 2010 to 2011.

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Companys assets: On 31 December 2011 the total assets of the company stood at rupees 24,082 million against rupees 27,887 million last year, showing a decrease of 14%due to increase in current assets. The total cash and bank balances at the end of the year was rupees 2,379 million as against rupees 2.705 million last year showing the decrease of 12%.

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BALANCE SHEET ASSETS: (2011) RUPEES IN THOUSAND (2010)

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LIABILITIES AND OWNERS EQUITY.

(2011) RUPEES IN THOUSAND

(2010)

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STATEMENT OF CASHFLOWS

(2011)

(2010)

RUPEES IN THOUSAND

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PROFIT AND LOSS ACCOUNT

Revenue account Net premium revenue Net claims - restated Expenses Net commission Net Investment income - statutory funds Add: Policyholders' liabilities at beginning of the year Less: Policyholders' liabilities at end of the year Capital contribution from shareholders' fund Surplus of Policyholders' funds Underwriting result Investment income - other Rental income Other income

1,203,286 (655,775) 22 (217,992) (92,018) 237,501

912,455 2,974,057 (494,320) (2,000,623) (164,275) (503,698) (149,164) (248,126) 104,696 221,610

1,893,546 (1,598,395) (343,372) 13,046 (35,175)

75,444 (28,415) (37,171) (24,487) 7,862 20,034 (54,320) 51,737 (10,684) -

26 (300) (7) 8 59 (8) 302 (80) -

355,992 (942) (69,603) (175,708) 14,019 79,386 (247,183) 63,297 (19,258) -

360,488 7,775,294 7,098,887 (363) (4,778,833) (4,884,479) (64,306) (1,400,717) (1,400,355) (187,804) (864,268) (640,881) 913 (178,051) 69,123 22,802 99,479 (479,562) 184,459 (30,022) 528,632 763,569 657 158,608 1,451,466 (1,577,675) 390 (15,179) 218,610 77,612 170,838 248,450 240,138 8,312 248,450 6,162 11,499 (99,479) 154,367 245,721 765,396 1,048 171,239 1,183,404 (646,338) (1,396) (18,966) 136,188 652,892 (62,993) 589,899 584,220 5,679 589,899

General and administration expenses 24 Exchange gain / (loss) Finance charge on lease liabilities Share of profit from associated companies Profit before tax Provision for taxation Profit after tax Profit attributable to: Equity holders of the parent Non-controlling interest

Profit and loss appropriation account - Parent Company Balance at the commencement of the year Profit after tax for the year attributable to equity holders of the parent Final dividend for the year ended 31 December 2010 @ 15% (Rupees 1.5/- per share) [2009: Rupees 1.5/- per share] Issue of bonus shares for the year ended 31 December 2010 Nil (2009:10%) Interim dividend @ 10% (Rupee 1/- per share) [2010: Rupee 1/- per share] Balance unappropriated profit at the end of the year 8,701,466 240,138 (185,557) (123,705) 8,632,342 Rupees 8,522,098 584,220 (168,688) (112,459) (123,705) 8,701,466 Rupees Restated Earnings per share - basic and diluted (Note 26) 1.94 4.72

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RATES FOR THE MONTH OF APRIL 2012

100 80 60 40 20 0 2-Apr 9-Apr 16-Apr opening 23-Apr opening closing high low average

(HISTORIC HIGH AND LOW)

52week(low) 15%

price change 0% high 27%

52week(high) 32% low 26%

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500 450 400 350 300 high 250 200 150 100 50 0 last 30 days last 90 days last 1 year last 3 year last 5 years low Column1

Last 30 days (2012-03-29 to54.4 2,329,861 81.13 2012-04-27) Last 90 days (2012-01-29 to 2012-04-27) 81.13 48.12 2,329,861 Last 1 year (2011-04-29 to 38.82 2,329,861 81.13 2012-04-27) Last 3 years (2009-04-29 to 2012-04-27) 135.2 38.82 13,363,705 Last 5 years (2007-04-29 to 2012-04-27) 430.9 38.82 13,363,705 All time (2003-01-01 to 2012-04-27) 430.9 37.5 19,421,000

RATIOS
Current P/E Ratio (ttm) Estimated P/E (12/2011) Earnings Per Share (PKR) (ttm) Est. EPS (PKR) (12/2011) Est. PEG Ratio Market Cap (M PKR) Shares Outstanding (M) Enterprise Value (M PKR) (ttm) Enterprise Value/EBITDA (ttm) Price/Book (mrq) Price/Sale (ttm) Dividend Indicated Gross Yield Volume 52wk Range: Dividend Yield Annualized (PKR) Dividend Indicated Gross Yield Last Dividend Reported (PKR) (10/04/2011) Relative Dividend Yield 5Y Net Growth

12.2896 13.0075 5.4900 5.1870 8,346.35 123.70 6,183.91 0.7372 0.9387 3.7147 1,968,304 38.8200-81.1300 1.4859 3.7147 1.0000 0.2426 -15.45% 20 | P a g e

RECOMMENDATION:
We recommend Adamjee to continue its operation all over the country. Other companies might have restricted their operation to a city or two, but Adamjee has its operation in nearly every city of Pakistan. Motivation of employees is also what we find a positive factor in Adamjees operation. Their employees work hard to achieve the organizations goals and they are also rewarded with incentives which motivates them to help Adamjee to the top. What Adamjee lacks is the customer service at a few departments. Agents should reach the client themselves and solve their queries. Work has to be searched in a country like Pakistan where lacks of awareness is a big factor. If Adamjee employees reach the people and explain the need and benefits of insurance like fire incident insurance, Adamjee will surely increase its business. Another thing we noticed is that Adamjee has a very low advertising sector. Advertising is an important asset for a company operating in Pakistan along with competitors as people of Pakistan never survey for a matter. They would call the first insurance company which comes in their mind which is done only through advertising which Adamjee lacks. Adamjee has a good future in Pakistan growing its operation and leading the insurance business.

Suggestion for stockholders:

Suggestion for the stockholders is that Adamjees shocks value has seen most frequent to be high and to be low because of subsequent trading and stock has not fully successful to get an attractive worth so stock holders has to wait until the stock is not gaining the massive worth. As the stocks value goes up the shareholder have to sell out their holding to avoid losses.

CONCLUSION:
We after weeks of study and visiting Adamjee insurance find Adamjee as the leading insurance company of Pakistan. Surely there are others in the market that is competitive enough like AIG insurance, but what we find in the statistics of Adamjee could not be found in any other insurance company. The numbers of cars running only in Karachi are the highest number of cars insured by any other insurance company. The amount of risk Adamjee takes insuring small business and arranging ransom money for kidnapping insurance cases is not taken by any other which makes them unique in the market.

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