Transmission of Annual Report for the Year Ended December 31, 2025

ANNUAL REPORT

EFU GENERAL INSURANCE LTD

ISO 9001 : 2015 Certified efuinsurance.com

ANNUAL REPORT

EFU General, founded in 1932, with a clear vision to safeguard the financial future of its customers. Even after ninety-three years, this commitment continues to guide everything we do.

Over the decades, we have navigated significant changes across the global, national, and industry levels. Evolving political and economic conditions have shaped the business landscape, and our sustained growth and market leadership reflect our resilience, adaptability, and ability to respond effectively to emerging challenges.

We have strengthened our foundations and earned enduring trust by consistently honoring our commitments. Our strong capital base, highly professional team and strategic partnerships with leading international reinsurers provide us with a distinct competitive advantage. Today, EFU stands proudly recognized as Pakistan's flagship insurance brand.

INTEGRITY

& ETHICS

The Company conducts its affairs with the highest standards of ethics, dignity, fairness and transparency, ensuring full compliance with applicable laws, regulations and corporate governance framework.

EXCELLENCE

The Company is committed to excellence by measuring performance not only through results but through service quality, policyholders' satisfaction and

long-term value creation for stakeholders.

PROFESSIONALISM

The Company upholds professionalism as a core value, ensuring that all business resources are managed prudently and efficiently to achieve sustainable and optimal returns in accordance with best industry practices.

DISCIPLINE

The Company's pursuit of excellence is anchored in discipline, supported by a clear strategic direction, robust controls and adherence to regulatory and governance frameworks.

OWNERSHIP

The Company promotes a culture of accountability and initiatives among its employees, ensuring that strategic objectives are delivered with diligence, responsibility and in alignment with shareholders' interests.

COMMUNITY

The Company remains committed to social responsibility by contributing to community welfare, financial inclusion and national development through structured CSR and ESG initiatives and ethical business conduct.

ABOUT THE REPORT

The Annual Report 2025 is designed to

present a clear, balanced and

decision-useful information of how the Company creates value through disciplined underwriting, prudent risk and capital management, responsive claims servicing, and strong governance.

The report connects our strategy, business model, key risks and opportunities, sustainability considerations, stakeholders' engagement and financial performance, enabling stakeholders to understand our operating context, performance drivers and outlook in a transparent manner.

1. Organizational Overview and External Environment

   EFU General Insurance Limited ("the Company") is a leading non-life insurer in Pakistan, providing insurance solutions across retail, SME and Corporate segments. Our purpose is to protect customers against financial loss and enable resilience through underwriting expertise, customer service, and reliable claims settlement.

   We operate in a dynamic external environment influenced by inflation, interest rates, FX volatility, catastrophe and climate-related events, evolving cyber threats, regulatory developments, and competitive pressures. The Company remains committed to compliance with applicable laws and regulations and to strengthening operational resilience in response to the changing landscape.

2. Strategy and Resource Allocation

   Our strategy is anchored in sustainable profitability and prudent growth. Key strategic pillars include:

   • Underwriting discipline with portfolio

     optimisation and risk-based pricing.

   • Claims excellence to enhance customer trust and service quality.

   • Digital enablement to improve efficiency, controls and customer experience.

   • Capital and liquidity strength through prudent investment and risk appetite alignment.

     Resource allocation during 2025 prioritised investments in people (technical skills), systems and controls, data-led decisioning, customers experience and business continuity capabilities.

3. Risks and Opportunities

   The Company follows a structured risk management approach for identification, assessment, monitoring and mitigation of principal risks. Key risk themes include:

   • Underwriting and reserving risk; catastrophe exposure and accumulation risk

   • Reinsurance counterparty risk and credit risk

   • Market, investment and liquidity risks

   • Regulatory, compliance and AML/CFT risks

   • Cybersecurity, data privacy, operational and third-party risks

     Opportunities include product innovation, growth in priority segments, improved analytics, stronger claims productivity, and digitally enabled distribution and servicing.

4. Sustainability Disclosures and CSR

   EFU General's sustainability approach integrates responsible business conduct, resilience, human capital development, community engagement, and operational efficiency. Sustainability considerations particularly climate related risk and customer expectations are increasingly relevant for non-life insurers. We continue strengthening our ability to assess, manage and respond to sustainability-related risks and opportunities, consistent with evolving stakeholder and regulatory expectations.

5. Governance

   The Company is committed to high standards of corporate governance, transparency and accountability. The Board provides oversight on strategy, risk management, internal control, financial reporting and compliance. Governance mechanisms include defined delegation of authority, oversight, internal audit assurance, and compliance monitoring. The Company maintains key policies and frameworks (e.g. code of conduct, conflict management, whistleblowing, HR policies and control standards) to support ethical conduct and effective oversight.

6. Analysis of the Financial Information

   Management's discussion and analysis explains performance through insurance-relevant indicators such as: premium growth and mix, underwriting profitability, claims trends and loss ratios, expense efficiency, combined ratio, investment performance, liquidity position and capital strength. Year-on-year comparisons are explained through key drivers including pricing, portfolio mix, claims development, reinsurance strategy, and market conditions.

7. Business Model

   EFU General creates value by transforming risk insights, underwriting expertise, distribution reach and capital strength into protection solutions and dependable claims support.

   • Inputs: capital, people, data, reinsurance capacity, brand, systems and partnerships

   • Activities: product design, underwriting/pricing, risk assessment, policy servicing, claims management, investments, compliance

   • Outputs: policies issued, claims settled, customer support delivered, risk prevention initiatives

   • Outcomes: customer resilience, stakeholder trust, sustainable shareholder returns, and contribution to economic prosperity

8. IT Governance and Cybersecurity

   IT governance supports operational reliability, data integrity and service continuity. The Company maintains controls relating to access management, segregation of duties, change management, backups, monitoring and incident response. Cybersecurity is addressed as an enterprise risk, and the Company continues strengthen its defensive measures, awareness, and vendor oversight to mitigate evolving threats and maintain stakeholders' confidence.

9. Future Outlook

   The Company remains focused on sustainable, profitable growth amid economic volatility and changing risk patterns. Our priorities include disciplined underwriting, prudent reinsurance protection, strong claims governance, efficient expense management, continued digital transformation and enhanced risk mitigation (including catastrophe/climate and cyber). We will continue aligning capabilities with market needs and regulatory expectations while preserving capital strength.

10. Stakeholder Relationship and Engagement

    We engage proactively with policyholders, employees, shareholders, regulators, business partners, reinsurers, vendors and communities through structured communication channels, service platforms, disclosures and feedback mechanisms. Our engagement approach emphasizes transparency, responsiveness and continuous improvement in customer experience and service delivery. We maintain appropriate mechanisms for grievances, complaints handling and whistleblowing to promote accountability.

11. Striving for Excellence in Corporate Reporting

EFU General is committed to corporate reporting that is clear, balanced, comparable and aligned with leading practices. The Annual Report aims to connect narrative reporting with financial results, explain performance drivers, and provide stakeholders with a coherent view of strategy, risk, governance and outlook. Processes are supported by internal controls over financial reporting and appropriate assurance mechanisms.

TABLE OF CONTENTS

ORGANIZATIONAL OVERVIEW AND EXTERNAL ENVIRONMENT

GOVERNANCE 03

82 Chairman's Review (English and Urdu)

84 Board of Directors

86 Directors' Profile

90 Report of the Directors to Shareholders (English and Urdu)

24 Financial Highlights 2025

26 Financial Strength Ratings

29 Company Information

30 Vision and Mission

32 Company Overview

32 External Environment Affecting the Company

34 Product Portfolio

46 Geographical Presence

48 Organogram

50 Our Journey

52 PESTEL Analysis

54 History of Major Events

58 CEO's Message

60 Code of Conduct

SHAREHOLDERS'& INVESTORS' INFORMATION

64 Notice of Annual General Meeting

1. Financial Calendar

2. Investor Relation

3. Decisions taken at the Last Annual General Meeting

1. Redressal of Investors' Complaints

2. Stakeholders' Relationship and Engagement

1. Share Price and Volume Analysis

2. Market Capitalization

121

121

122

122

122

122

123

123

123

124

125

126

126

127

127

127

128

128

129

130

132

134

134

134

135

136

plans and decision

Statement from the Board on Risk Management and Principal Risk Assessment

Chairman's Significant Commitment Avoiding Actual and Perceived Conflict of

Interest

Business Ethics and Anti-Corruption Measures Annual Evaluation of Board's Performance Director's Training (DTP) & Orientation

Policy for Related Party Transactions Remuneration of Directors

Minimum Solvency and Capital Requirement Human Resource Management

Policy and Procedure for Stakeholders' Engagement

Occupational Safety and Health Whistle Blowing Policy

Statement on Operations of the Board Policy for Safety of Records of the Company

Business Continuity / Disaster Recovery Plan Regulatory Monitoring and Compliance

Updates

Anti Harassment Policy

External Oversight / Audit of Systems The Management

Our People

Compliance with Code of Corporate

Governance

Presence of Chairman - Audit Committee in the Annual General Meeting

Internal Control Framework Independent Auditors' Review Report on

Statement of Compliance with the Codes Statement of Compliance with the Codes

MANAGEMENT REPRESENTATIONS AND OUTLOOfi

ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG)

/ SUSTAINABILITY

172

178

178

178

Awards and Recognitions Memberships of Industry, Associations

and Trade Bodies

Business Rationale for Major Capital Expenditure Compliance with International Financial

148

148

149

150

156

158

158

159

Opportunities

Integration into Governance and Risk Management Financial Impact of Sustainable Practices Regulatory Compliance & Investor Confidence Sustainability Report

Disclosure on Four Pillars Core Content and Company Specific Metrics

Adoption of The SECP's ESG Disclosure Guidelines Board'S Statement on The Adoption of CSR Best

Practices

Highlights of The Company's Performance, Policies, Initiatives For CSR

181

182

183

183

183

184

187

187

187

188

188

189

with group companies Relationship With Group Companies

(Subsidiary / Associated Undertakings)

Management Responsibilities towards the preparation and presentation of Financial Statements

Disclosure of Beneficial Ownership (Including Indirect Ownership) And Group Structure

Major Shareholders

Group Structure and Relationships Position of EFU General Insurance Limited

in the Value Chain

Effect of Seasonality on Business In Terms of Sales

Legitimate Needs and Interests of Key Stakeholders and Industry Trends

Key Stakeholders

Industry Trends Shaping Priorities Significant Event during the year and after

reporting period

Capabilities and Resources Providing Sustainable Competitive Advantage and Value Creation

STRATEGY & RESOURCE ALLOCATION

CORPORATE SOCIAL RESPONSIBILITY (CSR)

192

192

192

193

Liquidity Management Strategy Significant Changes in Assets & Liabilities Strategies in place to Achieve objectives Resource Allocation

162

167

167

167

167

167

167

168

168

169

169

Corporate Social Responsibility

Corporate Social Responsibility and Sustainability Board Commitment and Covernance

Governance Practices Beyond Legal Compliance Energy Conservation

Water Conservation Environmental Responsibility Consumer Protection

Quality Assurance

Contribution to The National Exchequer Natural Catastrophe Risk and Resilience

194

194

195

195

195

196

196

196

197

197

198

200

201

202

203

204

Analysis of Prior Period's Forward-looking

Disclosure

Forward-Looking Statement For 2026 Sources & Assumptions For Projection

Status of Ongoing Projects, Future Research & Development Initiatives

Government's Policies Related to Insurance Sector and Impact on Performance

Initiatives on Promoting and Enabling Innovation Strategic Reinsurance Partnerships Technological Advancements

Comprehensive Product Portfolio Experienced Management and Workforce Business Model

Company's strategy on market development, product and service development

Influence of factors on Strategies and resource

allocations

Key Performance Indicators (KPIs)

Linkage of Strategic objectives With Mission, Vision And Overall Objectives

Board's Statement on Internal Controls including IT Controls

RISfi AND

OPPORTUNITIES

UNCONSOLIDATED FINANCIAL STATEMENTS

Implementation

CONSOLIDATED FINANCIAL STATEMENTS

CYBERSECURITY 09

WINDOW TAfiAFUL OPERATION'S FINANCIAL STATEMENTS

230

231

231

231

231

232

232

233

234

234

Board's Responsibility Statement on Cyber Risk Oversight

IT Governance and Cybersecurity Strategy IT Governance Framework

Cybersecurity Programs, Policies And Procedures Industry-Specific Requirements and Standards Cybersecurity Strategy

Board Oversight of Cybersecurity Risks Cybersecurity Risk Management and Early

Warning System

Independent Security Assessment of Technology Environment

Resilient Contingency Arrangements and Disaster Recovery Plan

Cyber Insurance Coverage

452

453

454

455

456

457

of Directors

Statement of Financial Position Statement of Profit and Loss Statement of Comprehensive Income Statement of Cash Flows

Statement of Changes in Funds Notes to the Financial Statements

234

234

235

Advancements In Digital Transformation Key Elements Of The Cybersecurity

Training Program

ADDITIONAL INFORMATION

Enterprise Systems

FINANCIAL PERFORMANCE

CEO MESSAGE

https://efuinsurance.co m/resource/financials/ financial-reports/downlo ads/CEO_Message

511

513

515

Branch Network of Window Takaful Operations Form of Proxy (English and Urdu)

Bank Mandate Form (English and Urdu)

ORGANIZATIONAL

AND EXTERNAL

ENVIRONMENT

Organizational

Overview

FINANCIAL HIGHLIGHTS 2025

Total Assets

85,626

Investments

(including

Investment Properties)

38,398

Investment & Other Income

6,510

Underwriting Result

2,187

Rupees in Million

Rupees in Million

Rupees in Million

Rupees in Million

Shareholders' Equity

27,390

Premium Written

Premium (including

Takaful Contribution)

46,886

Claims Paid (Gross)

8,669

Profit After Tax

5,299

Rupees in Million

Breakup Value

(including

surplus on revaluation)

143.78

Rupees in Million

Rupees in Million

Rupees in Million

Cash Dividend

2,000

Rupees

Rupees in Million

24

EFU GENERAL INSURANCE LTD

25

ANNUAL REPORT 2025

Organizational

Overview

FINANCIAL STRENGTH RATINGS

AA

PACRA

++

B

A.M. BEST*

* For latest rating, visit https://www.ambest.com

26 27

EFU GENERAL INSURANCE LTD ANNUAL REPORT 2025

Organizational

Overview

COMPANY INFORMATION

Chairman

Saifuddin N. Zoomkawala

Vice Chairman

Hasanali Abdullah

Managing Director & Chief Executive Officer Kamran Arshad Inam

Directors

Taher G. Sachak Asad Nasir Saad Bhimjee

Tanveer Sultan Moledina Yasmin Hyder

Chief Financial Officer

Najmul Hoda Khan

Company Secretary & Compliance Officer Amin Punjani

Legal Advisor

Khurram Rashid Advocate

Shari'ah Advisor

Mufti Muhammad Ibrahim Essa

Audit Committee Tanveer Sultan Moledina Hasanali Abdullah

Taher G. Sachak Asad Nasir Yasmin Hyder

Ethics, Human Resource & Remuneration Committee Yasmin Hyder

Saifuddin N. Zoomkawala Hasanali Abdullah Kamran Arshad Inam

Auditors

KPMG Taseer Hadi & Co. Chartered Accountants

Sheikh Sultan Trust Building No. 2 Karachi

Registrar

CDC Share Registrar Services Limited CDC House, 99-B, Block-B S.M.C.H.S.,

Shahrah-e-Faisal Karachi - 74400

Website

https://www.efuinsurance.com

Email

info@efuinsurance.com

Registered Office Kamran Centre, 1st Floor 85 East, Jinnah Avenue Blue Area, Islamabad

Main Office

EFU House

M.A. Jinnah Road Karachi

Window Tafiaful Operations

5th Floor, EFU House

M.A. Jinnah Road Karachi

28

EFU GENERAL INSURANCE LTD

Investment Committee Hasanali Abdullah Saifuddin N. Zoomkawala Taher G. Sachak

Kamran Arshad Inam Najmul Hoda Khan

29

ANNUAL REPORT 2025

Organizational

Overview

VISION

To continue our journey to be better than the best.

MISSION

To provide services beyond expectation with a will to go an extra mile. In the process, continue to upgrade technology, human resources and reinsurance protection.

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EFU GENERAL INSURANCE LTD

31

ANNUAL REPORT 2025

Organizational

Overview

COMPANY OVERVIEW

EFU General Insurance Limited ("EFUG") was incorporated in 1932 as a public limited company and is engaged in underwriting non-life insurance and window takaful business. The Company is listed on the Pakistan Stock Exchange Limited, with its ownership structure, including the pattern and categories of shareholding, disclosed in detail in this Annual Report.

Following the Government of Pakistan's decision in 1990 to reopen the life insurance sector to the private sector, the EFU Group established EFU Life Assurance Limited (EFUL), which commenced operations in November 1992. EFU Life was the first insurer in Pakistan to introduce unit-linked insurance products. In March 2018, the Board of Directors assessed the Company's control over its investment in EFUL and declared EFUL to be a subsidiary of EFUG. EFUL is today one of the leading life insurance companies in Pakistan, with an Insurer Financial Strength rating of AA++ with a Stable outlook from PACRA.

EFU Group is the largest insurance group in Pakistan, comprising EFU General Insurance Limited and its subsidiary, EFU Life Assurance Limited. EFUG offers a comprehensive range of non-life insurance and window takaful solutions tailored to meet the needs of commercial, industrial, and individual clients. The Company's diversified product portfolio includes Fire and Property Damage, Marine, Aviation and Transport, Motor, and Miscellaneous insurance, as well as Window Takaful operations.

The shares of EFU General Insurance Limited are quoted on the Pakistan Stock Exchange. The Company holds an Insurer Financial Strength rating of AA++ with a Stable outlook from PACRA and also maintains an international rating from A.M. Best, the world's specialized insurance rating agency, which has assigned a Financial Strength Rating of "B" with a Stable outlook. EFUG's broad client base includes leading business houses, multinational corporations, financial institutions, SMEs, and individual customers across Pakistan.

EXTERNAL ENVIRONMENT AFFECTING THE COMPANY

The general insurance sector's performance is strongly correlated to economic growth. The key drivers of insurance growth in a country are typically macroeconomic factors, regulatory factors and demographics of a country. In Pakistan, the insurance penetration has remained modest as compared to neighboring countries. Discount rate was decreased from 13% to 10.5% during 2025 and is expected to decrease further in 2026. The Pakistan Stock Exchange KSE 100 index has risen from 117,119 points to 176,355 points during the year.

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EFU GENERAL INSURANCE LTD

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ANNUAL REPORT 2025

Organizational

Overview

PRODUCT PORTFOLIO

EFU General provides full range of insurance and takaful services to fulfill the needs of all its customers being commercial and individual clients. Our product portfolio includes:

FIRE AND PROPERTY DAMAGE

Business Interruption Fire

Home Protection Plan Material Damage Shopowners Terrorism

Electronic Equipment Insurance

Machinery Breakdown Insurance (MBD)

MOTOR

Comprehensive Motor Trade Third Party

AND MANY MORE

AND MANY MORE

MARINE, AVIATION AND TRANSPORT

Aviation and Marine Hull Import

Export

Inland Transit

AND MANY MORE

MISCELLANEOUS

Bankers Blanket Bond Public & Product Liability Personal Accident

Live Stock

Cash in Safe, transit

Worldwide Travel Insurance

Professional Indemnity, Fidelity Guarantee

Workmen Compensation

Cyber Risk Insurance

AND MANY MORE

34

EFU GENERAL INSURANCE LTD

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ANNUAL REPORT 2025

Organizational

Overview

FIRE AND PROPERTY DAMAGE

Fire and Property portfolio comprises of comprehensive insurance solutions designed to protect assets across the entire project and operational lifecycle. Our portfolio covers a wide range of risks faced by construction companies, industrial enterprises, contractors, and commercial businesses.

For construction and infrastructure developments, the department offers Engineering Insurance products including Contractors' All Risks (CAR) and Erection All Risks (EAR). For large and complex developments, EFU provides Comprehensive Project Insurance solutions for mega projects, integrating all major covers under a single framework. These include Marine Cargo, Marine Delay in Start-Up (DSU), Third Party Liability, Construction/Erection risks, and Advanced Loss of Profits following construction or erection, ensuring seamless protection from project inception to completion.

For operational plants and facilities, the Company provides Machinery Breakdown, Boiler and Pressure Vessel Insurance, and Electronic Equipment Insurance to safeguard critical machinery and systems. Contractors' Plant and Machinery (CPM) insurance is also available on an annual basis, covering contractors' equipment irrespective of individual projects.

In addition, the department manages Fire and Allied Perils Insurance for industrial and commercial properties, Comprehensive Machinery

/ All Risks Insurance, and Business Interruption cover, which is a core strength of the Company. EFU also offers Terrorism and Comprehensive Political Violence insurance, including War risks, delivering robust and reliable protection to our clients.

36

EFU GENERAL INSURANCE LTD

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ANNUAL REPORT 2025

Organizational

Overview

MARINE, AVIATION AND TRANSPORT

Marine Cargo insurance covers physical damage to cargo whilst moving from one place to another via any means of transport. Apart from cargo loss, customs duties and incidental costs can also be covered. For big projects, cargo policies can be extended to cover losses due to Delay in Start-Up (DSU). Seller's contingency covers are also available.

Marine Hull policies cover physical damage to ships, pontoons, barges, port terminals, rigs etc. Coverages are for hull all risks and hull war risks. Covers for personal accident to crew are also available. Ship-breaking (including death voyage cover) and ship-building risks are also covered in this class of insurance. Coverages for shipping agent liabilities, freight forwarders liabilities, transporters liabilities, charterers liabilities etc are also provided.

On the aviation side, EFU provides complete insurance solutions for fixed wing as well as rotor wings aircraft. Coverages are for hull all risks, hull war risks, hull deductible buyback, personal accident for crew, loss of license. Covers for airside liabilities, hangar keeper liabilities, aircraft refueling liabilities etc; are also available.

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EFU GENERAL INSURANCE LTD

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ANNUAL REPORT 2025

Organizational

Overview

MOTOR

EFU General remains the market leader in motor insurance, offering comprehensive coverage for both private and commercial vehicles. Our policies provide protection against accidental loss, theft, and third-party liabilities, along with coverage for risks such as natural calamities, fire, external explosions, riots, terrorism, and transit-related incidents. We offer financial security, peace of mind, and compliance with the motor vehicle laws, reinforcing our reputation as a trusted insurer.

We continuously innovate to enhance customer convenience, introducing a hassle-free, paperless process through our mobile app, allowing instant policy issuance, renewals, and swift claim processing. Additionally, our 24/7 WhatsApp Chatbot and call centre ensures seamless support and assistance.

Our diverse customer base reflects our ability to service all segments in accordance with their varying needs, ensuring tailored solutions for each customer.

With a strong focus on service quality, risk management, and customer satisfaction, we continue to strengthen brand preference and awareness, reaffirming EFU General as the most reliable name in motor insurance.

40

EFU GENERAL INSURANCE LTD

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ANNUAL REPORT 2025

Organizational

Overview

MISCELLANEOUS

Miscellaneous Insurance encompasses a broad spectrum of insurance solutions designed to address diverse and complex risks beyond conventional insurance classifications.

Through this portfolio, EFU General offers an extensive range of insurance solutions, including specialized covers such as Cyber Insurance, Bankers Blanket Bond, Crime and Infidelity Insurance, and Legal Liability Insurance covering Directors & Officers Liability, Public and Product Liability, Professional Indemnity, Employers' Liability/Workmen's Compensation, Export Trade Credit Insurance and Commercial General Liability. The portfolio further includes Burglary Insurance, Agricultural Insurance (Crop and Livestock), as well as tailored and customer-centric solutions such as Mobile Phone Insurance, Travel Insurance, Travel Inconvenience Cover, Personal Accident Insurance, Digital Transactional Insurance, ATM Cash Withdrawal and Wallet Insurance, along with combo packages offered through Bancassurance and Loyalty Programs. Collectively, these solutions provide comprehensive risk protection for corporates, industries, small and medium enterprises (SMEs), and individuals, ensuring coverage for businesses and personal needs alike.

EFU General's Credit & Suretyship offerings provide insurance-backed guarantees that support businesses in managing cash flows and fulfilling contractual commitments efficiently. These include performance bonds, mobilization advance guarantees, bid/tender guarantees, and retention money guarantees for construction and civil works, supply and installation projects, as well as specialized guarantees covering payment defaults.

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EFU GENERAL INSURANCE LTD

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ANNUAL REPORT 2025

Organizational

Overview

TAKAFUL

Takaful is a community-pooling system based on the principles of brotherhood and mutual help wherein participants contribute in a fund to help those who need it most in times of financial difficulties.

THE MODUS OPERANDI OF TAKAFUL

Different models are in practice in different parts of the world. All Takaful models are based on mutuality and Shari'ah concept of Tabbaru. The model used in Pakistan is known as Wakala-Waqf Model. In this model the pool is formed as a Waqf. All the contributions are deposited in this Waqf pool known as 'Participants' Takaful Fund' based on the terms and conditions of Participant Membership Document, claims are paid from the same pool to the participants.

THE ROLE OF THE OPERATOR IN TAKAFUL SYSTEM

The Operator serves as the Wakeel of the Waqf Fund and charges a 'Wakala fee' for it. The fee is paid from the Waqf Fund. As the Wakeel, the Operator invests the funds available in the Waqf Pool in Shari'ah-compliant investments for profits. Since the Operator is the Modarib and the Waqf Fund is the Rabul-ul-Maal, any profits made from the investments are shared between the two on predefined percentages.

44

EFU GENERAL INSURANCE LTD

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ANNUAL REPORT 2025

Organizational

Overview

GEOGRAPHICAL PRESENCE

GILGIT

01

EPZ

10

fiARACHI

01

HYDERABAD

01

SUfifiUR

01

RAHIM YAR fiHAN

ABBOTTABAD

ISLAMABAD

PESHAWAR

01

UCH

01

VEHARI

01

BAHAWALPUR

01

GOTH MACHI

01

SAHIWAL

RAWALPINDI

FAISALABAD

SIALfiOT

RAHIM YAR fiHAN GUJRANWALA

SUfifiUR

MULTAN

LAHORE

GOTH MACHI

SAHIWAL

BAHAWALPUR

VEHARI

01

MULTAN

01

FAISALABAD

04

LAHORE

01

GUJRANWALA

01

SIALfiOT

fiARACHI

HYDERABAD

EPZ

UCH

01

RAWALPINDI

01

ISLAMABAD

01

ABBOTTABAD

01

PESHAWAR

01

GILGIT

47

ANNUAL REPORT 2025

Organizational

Overview

ORGANOGRAM

Board of Directors

Ethics, Human Resource & Remuneration Committee

Investment Committee

Audit Committee

Company Secretary, Compliance & Risk Officer

Chief Financial Officer

Managing Director & Chief Executive Officer

Head of Internal Audit

Head of Human Resources

Head of Information Technology

Head of Internal Actuarial

Head of Legal

Head of Marketing & Corporate Communication

Head of Facilities Management

Head of Administration

48

Window Takaful Operations

Head of WTO

Head of Technical

Head of Property

Underwriting

Head of Property

Claims

Head of Motor Underwriting & Claims

Head of Miscellaneous/ Suretyship Underwriting

& Claims

Head of Marine, Aviation & Transport Underwriting

Head of Marine, Aviation & Transport Claims

Head of Re-Insurance

Divisional Head -

Liberty

Divisional Head -

Lahore

Divisional Head -Rawalpindi

Divisional Head -Multan

Functional Reporting Administrative Reporting

Conventional Business

Divisional Head -Corporate

Divisional Head -Clifton

Divisional Head -Central

Divisional Head -S.I.T.E

Divisional Head -

Jinnah

Divisional Head -Metropolitan

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EFU GENERAL INSURANCE LTD ANNUAL REPORT 2025

Organizational

Overview

OUR JOURNEY

1932

EFU establishes its first office in Calcutta, marking the beginning of a legacy in insurance

1961

EFU becomes the largest life Insurance company in Afro-Asian countries

1982

EFU celebrates its Golden Jubilee, commemorating 50 years of success and excellence in the insurance sector

1992

EFU Life is established, becoming the largest private-sector life insurance company in Pakistan

1993

EFU General becomes a Billion Rupee Company

2000

Allianz EFU is formed, introducing Pakistan's first specialized health insurance company

2022

EFU General records an all-time high written premium, surpassing Rs. 30 billion, the highest ever in Pakistan's non-life insurance sector

EFU General celebrated its 90 years of services and excellence

2018

EFU General becomes the first non-life insurance company in Pakistan to cross the Rs. 20

billion premium mark

2015

EFU General launches Window Takaful Operations (WTO), offering

Shariah-compliant insurance solutions

2014

EFU General attains ISO certification, reinforcing its reputation as a high-quality and reliable insurance provider

2007

EFU General celebrates 75 years of excellence, reaffirming its position as a trusted leader in the insurance industry

2002

EFU Group acquires Qamar House, one of Karachi's iconic landmarks, symbolizing its strong foundation and legacy

2023

EFU General achieved Rs

41.52 Billion mark. Highest attained by a non-life

insurer ever in Pakistan

2024

EFU Life acquired and merged EFU Health

2025

EFU General achieved the Rs 46.89 Billion milestone, the highest ever recorded by a non-life insurer in Pakistan

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EFU GENERAL INSURANCE LTD

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ANNUAL REPORT 2025

Organizational

Overview

PESTEL ANALYSIS

Rs

POLITICAL

SOCIAL

TECHNOLOGICAL

LEGAL

ECONOMIC

REGULATORY ENVIRONMENT:

The insurance sector in Pakistan is regulated by the Securities and Exchange Commission of Pakistan (SECP), which continues to strengthen prudential regulations, governance standards, consumer protection, and AML/CFT compliance. Adherence to evolving regulatory requirements remains mandatory and central to EFU General's risk management and compliance framework.

POLITICAL STABILITY:

Pakistan's political environment remains subject to periodic volatility. Changes in government policies, fiscal priorities, and regulatory focus can influence economic stability, investment sentiment, and overall insurance market growth.

ECONOMIC GROWTH:

Pakistan's economy continues to face structural challenges, including fiscal constraints, currency pressures, and subdued growth. Economic conditions directly impact insurance demand, claims trends, and affordability of premiums across retail and commercial segments.

INFLATION RATES:

Persistently high inflation has eroded purchasing power, placing pressure on households and businesses. This affects insurance penetration and necessitates careful pricing, cost management, and product structuring by insurers.

UNEMPLOYMENT:

Elevated unemployment levels reduce disposable income and employer-sponsored insurance coverage, particularly affecting motor, health-related covers, and SME insurance demand.

DEMOGRAPHICS:

ENVIRONMENTAL

Pakistan's large and youthful population presents long-term growth opportunities for general insurance. However, low insurance penetration highlights the need for greater financial literacy, awareness, and accessible insurance solutions.

CULTURAL AND RELIGIOUS CONSIDERATIONS:

Cultural perceptions and religious considerations continue to influence insurance uptake. The availability of Takaful solutions enables insurers to cater to Shariah-sensitive segments and broaden market reach.

DIGITALIZATION:

Rapid adoption of digital platforms, data analytics, and automation is reshaping underwriting, claims management, and customer engagement. Investments in digital

transformation enhance

operational efficiency, transparency, and customer experience.

CYBERSECURITY:

Increased reliance on digital systems elevates exposure to cyber risks. Strengthening cybersecurity controls, data protection mechanisms, and IT governance remains a key priority to safeguard sensitive customer and corporate information.

CLIMATE CHANGE AND NATURAL DISASTERS:

Pakistan's vulnerability to floods, earthquakes, and extreme weather events significantly impacts claims experience and risk assessment. Insurers must continuously refine catastrophe modeling, underwriting discipline, and reinsurance strategies to maintain resilience.

SUSTAINABILITY PRACTICES:

Growing emphasis on environmental, social, and governance (ESG) considerations is shaping stakeholder expectations. Adoption of sustainable practices supports long-term value creation, enhances reputation, and aligns EFU General with global insurance best practices.

REGULATORY COMPLIANCE:

Adherence to SECP regulations is essential. Non-compliance can result in penalties and damage to reputation.

CONSUMER PROTECTION LAWS:

Laws ensuring fair treatment of policyholders require insurers to maintain transparency in policy terms and claims processes.

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HISTORY OF MAJOR EVENTS

During the Year 2025

During the year, EFU General actively participated in key industry forums, academic collaborations, and strategic partnerships, while also hosting a range of internal initiatives that strengthened employee engagement and organizational culture. From thought leadership platforms and brand partnerships to wellness programs and performance recognitions, these activities reflect our commitment to innovation, inclusivity, and stakeholder connectivity. Collectively, they underscore a dynamic organization focused on growth, collaboration, and long-term value creation.

Proudly serving as Insurance Partner of Peshawar Zalmi in the Pakistan Super League.

Promoting teamwork and wellness at the 10th SOP Unified Marathon.

Representing EFU General at the International Women's Leaders Summit in support of inclusive leadership.

Strengthening team spirit at the Annual Picnic.

Celebrating Women's Day by honoring the contributions of women across EFU General.

Showcasing our innovation focus at the New Age Innovation Conference.

Breast cancer awareness session to promote women's health and well-being.

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Collaboration with IVS to encourage creative innovation.

Participating in Insure Impact Conference Pakistan 2025 to support industry advancement.

Celebrating 14th August with pride and collective commitment.

Recognizing North Zone's achievements with a Malaysia trip.

Engaging emerging talent at the Habib University Career Fair.

Celebrating recognition at the SAFA and ICAP Best Corporate Report Awards on team Dinner.

Commemorating South Zone's performance with a trip

to Malaysia.

Bringing leadership and North Zone employees together at a regional dinner.

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