1. Pakistan Life Industry Growth Pakistans Life Insurance Market has displayed significant growth over the last 2 years Year on year growth over the last two years has been around 29% State Life continues to dominate the market with a 62% share

2. Growth Drivers (Life) Success in developing distribution channels has been the main factor for the life industrys success – The growth in the last few years has been mainly driven by growth in bancassurance which constitutes a significant proportion of the business of most of the private sector players The life industry may have also benefited from the tax incentive introduced bringing the industry at par with mutual funds in allowing a tax credit for premiums paid into a life insurance policy

3. Significant Changes (Life) The most significant change in the last couple of years has been the exit of yet another multinational from the life industry – Metlife ALICO has decided to exit Pakistan As in the case of Commercial Unions exit the life company has been bought over by a major non-life company – in this case IGI Major global multinationals do not appear to have an interest in Pakistan – This has, however, probably more to do with our overall security environment rather than market dynamics The other potential significant change – the possibility of introduction of window takaful players in 2012 – was pre- empted by the family takaful players taking the SECP to court and having the 2012 Takaful Rules suspended

4. The Future (Life) The life industry has only 9 players ignoring Postal Life (SECP 18 May 2013) The industry, given its recent growth, has shown that there is room for more players – It is understood that there are a couple of parties interested in setting up new life companies The major constraint appears to be human resources – This is an area where the industry has to focus if the impressive growth of the past few years is to be carried forward into the future