| American Life Insurance Company (Pakistan) Limited |
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| Annual
Report 1998 |
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| CONTENTS |
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| Board
of Directors |
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| Corporate
Information |
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| Notice
of Meeting |
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| Financial
Highlights |
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| Directors'
Report |
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| Pattern
of Share Holding |
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| Auditors'
Report |
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| Balance
Sheet |
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| Revenue
Account |
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| Profit
& Loss Account |
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| Cash
Flow Statement |
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| Notes
to the Accounts |
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| Classified
Summary of the Assets |
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| BOARD
OF DIRECTORS |
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| CHAIRMAN |
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| ARIF
SULTAN MUFTI |
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Chairman |
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Chartered Accountant |
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| Bungalow
No. 89/C, 16th Street |
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Chief Executive |
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| Phase-VI,
Defence Housing Authority, |
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& Director |
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| Karachi. |
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| DIRECTORS |
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| ABBAS KHALAF |
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|
Director |
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Business Executive |
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| Verdun
Street |
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| Verdun
2000 Building, 9th Floor |
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| P.O.
Box 14-5644 |
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| Beirut-
Lebanon |
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| BILAL
AHMED QURESHI |
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|
Director |
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Business Executive |
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| 67,
Khayaban-e-Mujahid, |
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| Defence
Housing Authority |
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| Phase
V, Karachi. |
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| BRUCE
EMMITT DOZIER |
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|
Director |
|
Attorney |
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| 18
Quail Hollow Drive |
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| Hockessin
DE 19707-1404, USA |
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| E. A. NOMANI |
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|
Director |
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Advocate |
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| 6,
Embassy Villas, Clifton, Karachi. |
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| FAZAL-UR-RAHMAN
KHAN |
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|
Director |
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Business Executive |
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| C-1/R,
North Nazimabad, Karachi. |
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| KHALID
A. REHMAN |
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|
Director |
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Business Executive |
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| 19/2/A,
32nd Street, Phase V, |
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| Defence
Housing Society, Karachi. |
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| MOHAMMED
MIAN SOOMRO |
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|
Director |
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Business Executive |
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| D-7
Akbar Apartment |
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| Opp.
British Council Library |
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| Bleak
House Road, Karachi. |
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| MUHAMMAD
KALIM |
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|
Director |
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Business Executive |
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| 11
5-C, Shahrah-e-Iran |
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| Clifton-5,
Karachi. |
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| NISAR
A. MEMON |
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|
Director |
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Business Executive |
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| 78/2,
Khayaban-e-Sehar, |
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| Defence
Housing Authority |
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| Phase
VI, Karachi. |
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|
| ROBINSON
K. NOTTINGHAM |
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|
Director |
|
Business Executive |
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| 2401
Pennsylvania Avenue |
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| Unit
1603 Wilmington DE 19806, USA |
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| SAIYID
SAEED AKHTAR |
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|
Director |
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Consulting Actuary |
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| 6A-1,
Third North Street, |
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| Phase
1, DHA, Karachi-75500. |
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| CORPORATE
INFORMATION |
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| COMPANY
SECRETARY |
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| S.G.
Shahabuddin |
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| A-15,
Block 'C' North Nazimabad, Karachi. |
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| Office
Tel. No. 5683564 |
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| AUDITORS |
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| U/s.
Taseer Hadi Khalid & Co. |
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| Chartered
Accountants |
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| Sheikh
Sultan Trust Building No. 2, |
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| Beaumont
Road, Karachi. |
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| Tel.
No. 5685847-9 |
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| Fax
No. 92 (21) 5685095 |
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| LEGAL
ADVISERS |
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| Surridge
and Beecheno |
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| Finlay
House, I.I. Chundrigar Road, Karachi- 74000 |
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| Tel.
No. 2427292 - 94 & 97 |
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| Fax
No. 92 (21) 2418298 |
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| BANKERS |
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| Muslim
Commercial Bank Ltd. |
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| Habib
Bank Ltd. |
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| REGISTERED
OFFICE |
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| Lakson
Square, Bldg. No. 1, 11th Floor, Sarwar Shaheed Road, |
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| Karachi-74200
Pakistan. |
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| Tel.
No. 5685241,5687339, 5682876, 5661146-48 |
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| Fax
No. 92 (21) 5688042 |
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| SHARE
DEPARTMENT |
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| Ground
Floor, Sheikh Sultan Trust Building No. 2, |
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| Beaumont
Road, Karachi |
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| Tel.
No. 5686658, 5689021 |
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| Fax
No. 92 (21) 5685681 |
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| HEAD OFFICE |
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| Lakson
Square, Bldg. No. 1, 11th Floor, Sarwar Shaheed Road, |
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| Karachi-
74200 Pakistan. |
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| Tel.
No. 5685241, 5687339, 5682876, 5661146-48 |
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| Fax
No. 92 (21) 5688042 |
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| KARACHI
AGENCY OFFICES |
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| E-5,
M.A. Jinnah Road, Cosmopolitan Colony, |
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| New
Town, Karachi- 5. |
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| Tel.
No. 4917398,4917399,4917420, 4917443,4917446 |
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| Amil
Colony No. 2, |
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Suite No. 701-702, Park
Avenue, |
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| Jamshed
Quarter Nariman Road, Karachi |
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Shahrah-e-Faisal Block 6, |
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| Tel.
No. 4922712, 4913268, |
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P.E.C.H.S, Karachi. |
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| 4913417,
4913832 |
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Tel. No. 4312068-79 |
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Room No. 501, 5th Floor, Madina City Mall, |
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Abdullah Haroon Road, Karachi. |
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Tel. No. 5651530-37 |
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| LAHORE
OFFICE |
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| Al
Malik Bldg. 3rd Floor, |
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| 19
Davis Road Lahore- Pakistan |
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| Tel.
No. 6369882, 6369807, 6375590, 6374140 |
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| Fax
No. 92 (42) 6375589 |
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| NOTICE
OF ANNUAL GENERAL MEETING |
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| Notice
is hereby given that the Fourth Annual General Meeting of American Life
Insurance Company (Pakistan) Limited will be |
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| held
at Hotel Marriott, Abdullah Haroon Road, Karachi on Saturday, March 27, 1999
at 10.30 a.m. to transact the following |
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| business:- |
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| ORDINARY
BUSINESS |
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| 1.
To receive, consider and adopt the Annual Audited Accounts of the Company
together with the Directors' and Auditors' |
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| reports
thereon for the year ended December 31, 1998. |
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| 2.
To appoint auditors for the year ended December 31, 1999 and to fix their
remuneration. A shareholder of the |
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| Company
has given notice under Section 253 of the Companies Ordinance, 1984 proposing
the appointment of M/s. |
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| Coopers
& Lybrand, Chartered Accountants, as auditors of the Company for the year
ending December 31,1999. The |
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| retiring
auditors M/s. Taseer Hadi Khalid & Co., Chartered Accountants, being
eligible also offer themselves for re- |
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| appointment. |
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| 3.
To elect eight Directors of the Company, as fixed by the Board of Directors,
in accordance with the provisions of Section |
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| 178(1)
of the Companies Ordinance 1984, for a period of three years. The names of
the present Directors who will retire |
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| on
March 27, 1999 are as follows: |
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| Mr.
Robinson Kendall Nottingham |
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Mr. Bruce Emmitt Dozier |
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| Mr.
Abbas M. Khalaf |
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|
Mr. Arif Sultan Mufti |
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| Mr.
Saiyid Saeed Akhtar |
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|
Mr. E. A. Noomani |
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| Mr.
Khalid A. Rehman |
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|
Mr. Fazal-ur-Rehman Khan |
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| The
retiring Directors are eligible for re-election. |
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| SPECIAL
BUSINESS |
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| 4.
To approve the terms and conditions of appointment of the Chief Executive. |
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By order of the Board |
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| March
05, 1999 |
|
S.G. Shahabuddin |
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| Karachi |
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|
Company Secretary |
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| NOTES: |
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| 1.
The Share Transfer Books of the Company will remain closed from March 12,
1999 to March 27, 1999 (both days |
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| inclusive). |
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| 2.
A member entitled to attend and vote at this meeting may appoint another
member as his/her proxy to attend, speak |
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| and
vote instead of him. A company or corporation may, by means of a resolution
of its directors, appoint a person who |
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| is
not a member, as proxy or as its representative under section 162 of the
companies ordinance 1984. Form of proxy |
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| is
enclosed with the Annual Report. |
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| 3.
The instrument appointing a proxy, in order to be effective, must be received
at the registered office of the Company, |
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| duly
signed, stamped & witnessed, not later than forty-eight hours before the
time appointed for the meeting. A |
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| member
shall not be entitled to appoint more than one proxy. If more than one
instrument of proxy are deposited by a |
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| member
with the Company, all such instruments of proxy shall be rendered invalid. |
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|
| 4.
Members are requested to communicate promptly to the Company of any change in
their address. |
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| 5.
Every candidate for election of Director, whether he is a retiring Director
or otherwise, shall file with the Company, not |
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| later
than fourteen days before the date of the Annual General Meeting a notice of
his intention to offer himself/herself |
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| for
election as a Director along with his/her consent in the prescribed form to
his/her appointment as Director of the |
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| Company. |
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| STATEMENT
UNDER SECTION 160 OF THE COMPANIES ORDINANCE, 1984 |
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| This
statement sets out the material facts concerning the special business to be
transacted at the Fourth Annual General |
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| Meeting
of American Life Insurance Company (Pakistan) Limited to be held on March 27,
1999. |
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|
| 1.
Approval of the shareholders will be sought for the remuneration payable to
the Chief Executive in accordance with his |
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| terms
and conditions of service. For this purpose the following Ordinary Resolution
will be moved: |
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| "RESOLVED
that the Company hereby approves and authorizes by way of salary to the Chief
Executive, an amount |
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| not
exceeding Rs.2.6 million per annum for the year ending on December 31,1999.
Increments for subsequent years |
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| shall
not exceed percent as may be determined by the Board of Directors or by a
Committee of the Board. The |
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| Company
further hereby also approves and authorizes the provision to him of all other
benefits in accordance with his |
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| terms
and conditions of service with the Company." |
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|
|
| Mr.
Arif Sultan Mufti has been nominated as Chief Executive under Article 71 of
the Articles of Association of the |
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| Company
and is interested in the business. |
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|
| FINANCIAL
HIGHLIGHTS |
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|
|
|
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|
(Rupees in 000) |
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|
Dec 31 |
Dec 31 |
Dec 31 |
|
|
1998 |
1997 |
1996 |
|
|
|
|
| Balance
Sheet |
|
|
|
| -
Total Equity |
|
325,000 |
130,000 |
130,000 |
|
| -
Total Liabilities (other than shareholder's equity) |
36,145 |
16,211 |
8,178 |
|
| -
Total Assets |
|
322,599 |
116,764 |
118,761 |
|
| -
Total Capital Funds (shareholder's equity) |
286,454 |
100,553 |
110,583 |
|
| -
Policy Enforced |
|
5,081 |
2,300 |
1,745 |
|
| -
Ordinary Share value (face value per share Rs.10/-) |
|
|
| Market
Price Per Share |
|
17.50 |
20.85 |
27.50 |
|
| -
Right Share issue |
|
150% |
- |
- |
|
|
|
|
| Revenue
Account |
|
|
|
| -
Net Premium Income |
|
64,253 |
34,234 |
20,448 |
|
| -
Investment and other Income |
|
12,716 |
11,434 |
10,862 |
|
|
|
|
|
| Operating
Expenses |
|
|
|
| - Net Claim |
|
|
7,623 |
2,852 |
1,358 |
|
| -
Direct Expenses Commission |
|
11,604 |
5,548 |
6,347 |
|
| -
Management Expenses |
|
66,843 |
46,600 |
33,432 |
|
|
|
| REPORT
OF THE DIRECTORS |
|
|
| The
Directors of the Company are pleased to report to you for the year ended
December 31, 1998. |
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|
| ECONOMY |
|
| The
economic situation of Pakistan during 1998 after the nuclear tests on May 28,
1998 deteriorated drastically which has |
|
| affected
the common man badly. Inspite of these adverse conditions your company's
operating results are moving forward with |
|
| positive
impact in the insurance market. |
|
|
| OPERATIONS |
|
| Your
Company has completed its third full year of operation in 1998 with record
growth. Net premium income grew to |
|
| Rs.
64,254,000, an increase of 88% over Rs. 34,234,500 registered in the previous
year. This remarkable result was made |
|
| possible
by the improving performance of the agency sales force and continued quality
of business being written as a result of |
|
| the
Company's new Agents Training Program. This has resulted in developing many
qualified agents according to the |
|
| company's
standard established worldwide. A majority of the premiums came from
individual policyholders, which augurs |
|
| well
for future growth and stability of the portfolio and also reflects the
continued popularity of the company's products, which |
|
| are
becoming known to prospective customers in the market. |
|
|
| Disciplined
underwriting, risk selection, better service to policy holders and prompt and
speedy payment of claims with expense |
|
| control
have been maintained and contributed positively towards progress of the
company. Total claims amounted to |
|
| Rs.
7,623,000 only 12% of premium income, while commission expense is 18% only. |
|
|
| Investment
income amounted to Rs. 11,833,000 making the total income of the company Rs.
76,087,000 compared to Rs. |
|
| 44,899,000
in the previous year. An operating loss of Rs. 9,099,000 compared to Rs.
10,030,000 recorded in the previous year |
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| shows
a 9% reduction due to growth in premium and maximization of investment
income. The losses in the initial years for a |
|
| Life
Company are expected to vanish in subsequent years by maintaining growth in
production. |
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|
| MARKETING
OPERATIONS |
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| Growth
of the company's agency force for the year was positively experienced by
increase in extensive training and revised |
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| development
program. The low attrition among both agents and managers was lower than last
year and the total agency force |
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| overall
reached our targets. |
|
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| A
Direct Sales Training School was introduced during the year with the help of
ALICO's regional personnel to provide intensive |
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| training
of agency recruits to better prepare them to cope with initial marketing
problems and to accelerate their start into life |
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| insurance
sales. This initiative proved to be a valuable aid in launching products and
development of agents and in equipping |
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| them
with necessary selling skills. Graduates of this program are now the mainstay
of the agency force. Presently the number |
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| of
agents working with us are 450 as on above date. |
|
|
| In
addition, an experienced agency executive from the United Kingdom was
assigned to the company from February 1, 1998 to |
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| assist
and setup agency training and development program which has accomplished its
first phase. Our competition and trophy |
|
| awards
program are working together to create a healthy competition in field force
and meet monthly target achievements |
|
| giving
us some of the top scorers and produced the best agents who achieved overseas
trips and good name of Alico Pakistan |
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| amongst
world wide life insurance producers. |
|
|
| AGENCY
DEVELOPMENT |
|
| Alico
Pakistan experienced rapid growth in the year 1998. Two new products,
Executive 3 and Pro-tech 3 were marketed that |
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| were
widely welcomed by the customers. In terms of agency development, it will be
worth-noting that Alico's trained sales force |
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| consists
of more than 450 which is expected to cross the 1000 mark by the end of the
year 1999. Moreover, your Company is |
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| expanding
its wings by opening up branches all over the country. An independent agency
has recently been inaugurated in |
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| Karachi. |
|
|
| Alico
was ranked highest in Pakistan during the period 1952- 72 and it was one of
the top ranking in the Middle East and Africa. |
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| We
are going all out to make Alico number one again not only in Pakistan but
also in the Middle East, Africa and South Asia |
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| regions
as well in terms of coverage provided, premium income, stockholders' interest
and above all the customer service. |
|
|
| Alico's
sales force and staff comprise of professionally developed and dedicated
people who keep striving to achieve the |
|
| highest
business and ethical standards. One of Alico's managers was qualified to
represent Pakistan in an international |
|
| conference
held in Amsterdam. |
|
|
| GROUP
LIFE & MEDICAL |
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| Group
insurance results show increased sales in 1998 and performed very well during
the year. Group premiums amounted to |
|
| Rs.
18,138,000 for the year, an increase of 123% as compared to Rs. 8,145,000 in
the previous year. Additional sales in the first |
|
| quarter
this year are encouraging and indicate that another substantial increase in
income from group can be expected in 1999. |
|
| We
are confident to make new progress in future for this product line and expect
continued improvement going forward. |
|
|
| For
the first time in Pakistan, Depositor's Life Insurance scheme was introduced
by your Company in association with United |
|
| Bank
Limited. Under this scheme UBL accountholders are insured for twice the
minimum amount of balance maintained in their |
|
| PLS
Savings accounts. We believe that Depositor's Life insurance offers promising
potential to rapidly expand the number of |
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| insured's
covered with us. |
|
|
| The
unique features of your Company's new products like Managed Care are being
well accepted by the market and we look |
|
| forward
to continued expansion in 1999. |
|
|
| Your
company is well positioned to handle and service this type business with the
latest in claims and administration systems in |
|
| place
as well as experienced and trained personnel with persistent overseas
training programs. |
|
|
| OUTLOOK
FOR THE FUTURE |
|
| The
management will continue its policy of focusing on quality underwriting and
direct sales through qualified trained agents. |
|
| With
the addition of new products during the year in both the individual and group
life divisions, the company has started |
|
| providing
more attractive selection of benefits for a wider variety of clients. Most
recently introduced were the Executive Three |
|
| and
Pro-Tech Three policies. The Executive Three and Pro-Tech Three policies
offer 3 years of Carefree Worldwide Protection |
|
| that
provide for the holder in case of accidental loss of life or a major
disability coverage, 24 hour protection, on or off the job. |
|
| Executive
Three caters to the Supervisory and Executives and higher salary income group
whereas Pro-Tech Three caters to |
|
| the
manual workers and lower income groups. Both products are gathering momentum
and generated good business in the |
|
| year
under report. They are expected to double in size in the next year. |
|
|
| Operating
expenses are strictly controlled and investments are effectively placed.
Prospects for better results in 1999 are |
|
| promising. |
|
|
| PARENT
COMPANY |
|
| American
Life Insurance Company (ALlCO) incorporated in the United States of America
having its registered office at ONE |
|
| ALICO
PLAZA, Wilmington, State of Delaware, 19899, U.S.A. is the sponsor and
holding company of American Life Insurance |
|
| Company
(Pakistan) Limited. |
|
|
| PATTERN
OF SHAREHOLDING |
|
| The
pattern of Shareholding in the company as at December 31, 1998 is included
with the report. American Life Insurance |
|
| Company
holds 51% while local shareholders hold 49% of the company's total
shareholding. |
|
|
| DIRECTORS |
|
| Our
gratitude goes to Mr. Ben Cross ex-Chief Executive and founding Director of
the company for his tremendous support and |
|
| insurance
skills extended to the company during the current and previous years. We are
lucky to have Mr. Arif S. Mufti as his |
|
| worthy
successor. |
|
|
| RIGHT SHARE |
|
| Company
has recently announced and allotted Right Shares to existing shareholders to
the tune of Rs. 195 million as a result of |
|
| increase
in Capital decided by the management during the year. The major part of Right
Shares was subscribed by public |
|
| shares
showing strong indication in favor of your company in the market. This also
indicated by the quoted share price at Rs. |
|
| 17/=
per share which remained constant before and after the Rights Issue. |
|
|
| The
Capital of the company is now strengthened with solid capital base in order
to support various expansions being planned by |
|
| the
management. Recently two more branches of the company in the heart of the
Karachi city area have started functioning |
|
| during
the year. |
|
|
| YEAR
2000 COMPLIANCE |
|
| All
computer systems both hardware and software are year 2000 compliant. |
|
|
| GRATITUDE |
|
| We
take this opportunity to express our appreciation to the Government of
Pakistan, Ministry of Commerce and Department of |
|
| Insurance
for their invaluable assistance and guidance. We would like to also express
our sincere thanks to the company's |
|
| officers,
field force and staff for their substantial effort toward the company's
remarkable achievements during the year, which |
|
| has
laid a milestone in the life insurance industry in the private sector of
Pakistan. |
|
|
| Lastly,
our thanks go to our thousands of shareholders and policyholders whose
confidence, continued commitment and |
|
| support
for the Company has been a source of encouragement and inspiration. This is
well proved by maintaining more than |
|
| 85%
persistency for ordinary life business. |
|
|
|
|
On behalf of the Board of Directors. |
|
|
|
|
|
|
|
Arif S. Mufti |
|
| February
18, 1999 |
|
CHAIRMAN & CEO |
|
|
|
| PATTERN
OF SHAREHOLDING |
|
| AS
OF 31 DECEMBER 1998 |
|
|
| No. of |
Having |
|
Shares Held |
Percentage |
|
| Share |
Shares |
|
|
|
| Holders |
From |
To |
|
| 81 |
1 |
100 |
7100 |
0.0218% |
|
| 407 |
101 |
500 |
186050 |
0.5725% |
|
| 32 |
501 |
1000 |
28950 |
0.0891% |
|
| 90 |
1001 |
5000 |
180750 |
0.5562% |
|
| 9 |
5001 |
10000 |
64950 |
0.1998% |
|
| 3 |
10001 |
15000 |
37100 |
0.1142% |
|
| 4 |
15001 |
20000 |
75850 |
0.2334% |
|
| 20 |
20001 |
25000 |
493900 |
1.5197% |
|
| 1 |
25001 |
30000 |
30000 |
0.0923% |
|
| 2 |
30001 |
35000 |
63400 |
0.1951% |
|
| 1 |
45001 |
50000 |
49500 |
0.1523% |
|
| 2 |
60001 |
65000 |
127500 |
0.3923% |
|
| 1 |
65001 |
70000 |
69500 |
0.2138% |
|
| 1 |
70001 |
75000 |
72000 |
0.2215% |
|
| 1 |
85001 |
90000 |
88100 |
0.2711% |
|
| 1 |
95001 |
100000 |
97500 |
0.3000% |
|
| 1 |
100001 |
105000 |
104250 |
0.3208% |
|
| 1 |
445001 |
450000 |
449300 |
1.3825% |
|
| 1 |
1215001 |
1220000 |
1218000 |
3.7477% |
|
| 1 |
2095001 |
2100000 |
2100000 |
6.4615% |
|
| 1 |
2310001 |
2315000 |
2314000 |
7.1200% |
|
| 1 |
2450001 |
2455000 |
2451050 |
7.5417% |
|
| 1 |
2495001 |
2500000 |
2500000 |
7.6923% |
|
| 1 |
3120001 |
3125000 |
3125000 |
9.6154% |
|
| 1 |
16565001 |
16570000 |
16566250 |
50.9731% |
|
| ---------- |
|
---------- |
---------- |
|
| 665 |
|
32500000 |
100.0000% |
|
| ========== |
|
========== |
========== |
|
|
| CATEGORIES
OF SHAREHOLDERS |
|
|
| Particulars |
|
Shareholders |
Shareholding |
Percentage |
|
|
| INDIVIDUALS |
|
655 |
12027500 |
37.0077% |
|
| INSURANCE
COMPANIES |
|
1 |
1000 |
0.0031% |
|
| JOINT
STOCK COMPANIES |
|
4 |
1378500 |
4.2415% |
|
| FINANCIAL
INSTITUTIONS |
|
4 |
2526750 |
7.7746% |
|
| FOREIGN
COMPANIES |
|
1 |
16566250 |
50.9731% |
|
|
|
---------- |
---------- |
---------- |
|
| Company
Total |
|
665 |
32500000 |
100.0000% |
|
|
|
========== |
========== |
========== |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of American Life Insurance Company
(Pakistan) Limited as at 31 December |
|
| 1998
and the related Revenue Account, Profit and Loss Account and Cash Flow
Statement, together with the notes forming part |
|
| thereof,
for the year then ended and we state that we have obtained all the
information and explanations which to the best of our |
|
| knowledge
and belief were necessary for the purpose of our audit and after due
verification thereof, we report that; |
|
|
| (a)
in our opinion, proper books of accounts have been kept by the company as
required by the Companies Ordinance, |
|
| 1984; |
|
|
|
|
|
|
| (b)
in our opinion: |
|
|
|
| i)
the Balance Sheet, Revenue Account and Profit & Loss Account together
with the notes thereon, have been |
|
| drawn
up in conformity with the provisions of the Insurance Act, 1938 and are in
agreement with the books of |
|
| accounts
and are further in accordance with the accounting policies consistently
applied; |
|
|
| ii)
the expenditure incurred during the year was for the purpose of the company's
business; |
|
|
|
| iii)
the business conducted, investments made and expenditure incurred during the
year were in accordance with |
|
| the
objects of the company; |
|
|
|
| c)
in our opinion and to the best of our information and according to the
explanations given to us and as shown by the |
|
| books
of the company, the Balance Sheet, Revenue Account, Profit and Loss Account
and Cash Flow Statement, |
|
| together
with the notes forming part thereof, give the information required by the
Insurance Act, 1938 in the manner so |
|
| required
and respectively give a true and fair view of the state of the Company's
affairs as at 31 December 1998 and of |
|
| the
loss and the cash flows for the year then ended; |
|
|
|
| (d)
we have verified the cash and bank balances and investments by actual
inspection or by the production of certificates; |
|
|
|
|
| (e)
as required by Regulation 11 of part 1 of Third Schedule to the Insurance
Act, 1938, we certify that the company has not |
|
| paid
to any person any commission in any form outside Pakistan in respect of the
insurance business transacted by the |
|
| company
in Pakistan and that the company has not received, outside Pakistan, from any
person any commission in any |
|
| form
in respect of any business reinsured abroad; |
|
|
|
|
| (f)
pursuant to clause (a) of subsection (2) of Section 40-B of the Insurance
Act, 1938, we certify that all expenses of |
|
| management
in respect of life insurance business transacted by the company in Pakistan
have been fully debited in the |
|
| Revenue
Account as expenses; |
|
|
|
| (g)
no part of the assets of the Life Insurance Fund has been directly or
indirectly applied in contravention of the provisions |
|
| of
the Insurance Act relating to the application and investment of Life
Insurance Funds; |
|
|
| (h)
in our opinion no zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
|
|
|
Taseer Hadi Khalid & Co. |
|
| KARACHI:
February 18, 1999 |
|
Chartered Accountants |
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