The Saudi Pak Insurance Company Limited (SPICL) has earned net profit of Rs6.1 million during the second quarter ended in June 30, 2011, showing much better performance compared to the same period of last year during which it had to face losses of Rs7.4 million. The performance of third quarter is expected to be better than the second quarter of 2011, said a statement issued by the company here Tuesday. Since its inception in 2005, with major shareholding of Saudi Pak Industrial and Agriculture Investment Company Limited, the company remained in losses and as a result the book value per share substantially depleted. However, after replacement of previous Managing Director, SPICL adjusted its risk management and risk retention policy, recognized company’s geographical and corporate structure, enhanced quality business and also made substantial reduction in management expenses that contributed in achieving improved performance in second quarter. The new management with the guidance and support of its shareholders that includes Saudi Pak Industrial and Agriculture Investment Company, Silk Bank and a Leasing Company is striving hard to turn around the company in shortest possible time, the statement added. As part of its future strategy, the company is planning to enhance business volume through providing quality, value-priced and diversified insurance products and in the process will also retrieve and enhance value for its shareholders, provide better services to its clients, policy holders and other stakeholders in the business of company. The company has entered into reinsurance treaty arrangements with SCOR Reinsurance Asia Limited to diversify its risk regime framework. It is pertinent to mention here that after witnessing losses in SPICL, the Management and Board of Directors of Saudi Pak Industrial and Agriculture Investment Company had decided to divest 51 per cent shares of SPICL to Mian Muhammad Akram Shahid, Chairman United International Group. The Securities and Exchange Commission of Pakistan (SECP), Competition Commission of Pakistan and State Bank of Pakistan also approved the divestment proposals and as such the essential regulatory and corporate requirements were fully met to implement the share purchase agreement between the parties. Mian Muhammad Akram Shahid had rich experience and successful record in insurance industry as substantiated by the fact that a sick insurance company acquired by him in the past had since been turned around successfully.
