Jubilee Life Insurance : Transmission of Annual Report for the Year Ended 2021-12-31

People. Partnerships. Possibilities.

Marking 25 Years of Our Purpose.

-Teamwork-Integrity-Excellence-Passion

ANNUAL REPORT 2021

At Jubilee Life, we believe long-term success is the result of relationships built on a foundation of trust because people get more value from those they trust. And that is why people across Pakistan have been trusting us for over 25 years to deliver insurance solutions that help them build securer futures for themselves and their loved ones. Moreover, as a company, we believe that creating a strong business by evolving and adapting to meet the needs of our ever-changing communities is essential to this sustained leadership.

Today, we continue what we started 25 years ago - the pursuit of both excellence in enterprise and a constant commitment to our customers.

About The Report

The annual report of the Jubilee Life Insurance Company Limited is a comprehensive document designed to provide a holistic view to our valued stakeholders and readers about the Company's operations, financial performance, corporate governance, and business strategies. The report including financial statements complies with all applicable statutory and regulatory requirements articulated in the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified under the Companies Act, 2017, provisions of and directives issued under the Companies Act, 2017 and Insurance Ordinance, 2000, Insurance Rules 2017, Insurance Accounting Regulations, 2017, the Takaful Rules, 2012 and International Integrated Reporting Council (IIRC) Integrated Reporting (IR) Framework.

The report covers the reporting period from January 1, 2021 to December 31, 2021 including subsequent events till its issuance to shareholders.

The report contains information that stakeholders of the Company would reasonably require to make an informed assessment of the operations of the Company reported on, the financial performance, business strategies, key performance indicators, value chain, business model, competitive analysis and its prospects for the future.

The report delineates the respective roles and responsibilities of the Company towards implementing Integrated Reporting (IR) framework to enhance accountability, transparency and credibility and established business strategies for maintaining market leadership.

We identified the emergence of corporate social responsibility by adopting 9 goals from 17 United Nation's Sustainability Development Goals (SDGs) 2030 and have been successfully embedded sustainability at the core of our business operations over the year. We believe this disclosure would create more awareness among our stakeholders related to environment, sustainability and well-beingness.

This annual report contains following elements for the stakeholders of the Company:

• Organizational Overview and External Environment
• Strategy and Resource Allocation

• Risks and Opportunities

• Governance
• Performance and Position

• Stakeholders Relationship and Engagement

• Sustainability and Corporate Social Responsibility
• Outlook

SCAN ME

CONTENTS

Organizational Overview & External environment				• Chairman's significant commitments and any
				changes thereto	76
• Company Profile	03			• Avoiding actual and perceived Conflict of Interest	76
• Vision, Mission & Core Values	04			• Human Resource Management Policy and
• Overall Corporate Strategy	07			Succession Planning	76
• Journey of Jubilee Life over 25 years	08			• Social and Environmental Responsibility	76
• Rating of the Company	11			• Business Continuity Plan/ Disaster Recovery Plan	76
• Key Financial Highlights	13			• Pandemic Recovery Plan	77
• Awards and Accolades	15			• Unreserved Compliance with IFRS Issued by
• Business Model	20			IASB	77
• Key Products and Customer Services	22			• Compliance with the best practices of Code of
• Geographical Presence	23			Corporate Governance	77
• Company Information	24			• Governance Practices exceeding Legal
• Ownership Structure	28			Requirements	77
• Operating Structure	29			• Statement of Adherence with the International
• Organogram	30			Integrated Reporting Framework	78
• Calendar of Major Events - 2021	32			Strategy and Resource Allocation
• Code of Conduct	33
• Business Ethics & Culture	34
• Significant changes from previous year	34			• Strategic Objectives	80
• HR Excellence	35			• Strategies to achieve strategic objectives and Key
• Macro Environment Analysis	41			Performance Indicators (KPI's)	81
• Competitive Landscape & Market Positioning	43			• Resource allocation Plan to implement the
• Company's SWOT Analysis	44			strategy	83
• External Value Chain	45			• Factors affecting Company's strategy and
• Internal Value Chain	46			Resource allocation Plans	83
Corporate Governance				• Specific Processes used to make strategic decision	83
			• Specific Processes used to establish and monitor
				the Culture of the Organization	83
• Profile of Directors	48			• Company's attitude to Risk and Mechanisms for
• Chairman's Review	53			addressing Integrity and Ethical Issues	84
• Directors' Report to the Shareholders	55			• Initiatives taken by the Company in promoting
• Board Committees' Term of Reference (TOR)	66			and enabling innovation	84
• Report of Audit Committee	69			• Strategy to overcome liquidity problem and plans
• Roles and Responsibilities of Chairman &				to manage repayment of debts and meet
Chief Executive Officer	72			operational losses	84
• Annual Evaluation of Board and its Committee	73			• Significant Plans and Decisions such as Corporate
• Formal Orientation and Training Program	73			Restructuring and Business Expansion	84
• Matters delegated by Board to the Management	73			• Methods & Assumptions in Compiling Indicators	84
• Details of any Board Meetings held abroad	73			• Changes in Indicators & Performance Measures	84
• Presence of Chairman of Audit Committee				• Significant changes in objectives and strategies
at AGM	73			from previous year	84
• Policy for security clearance of foreign Director	73			Risks and Opportunities
• Use of external search consultancy in the	73
appointment of Independent Director
• Policy for safety record of Company	73			• Risk Management Policy	86
• Policy for Transactions with Related Parties	74			• Determining the level of Risk tolerance and
• Whistle Blowing Policy	75			Establishing Risk Management Policies	86
• IT Governance Policy	75			• Robust Assessment of Principal Risks	86
• Issues raised in last Annual General Meeting				• Enterprise Risk Management Framework	87
(AGM)	76			• Risk Management Process	88
• Shares held by Sponsors, Directors & Executives	76			• Analysis of Key Risks	89
				• Analysis of Key Opportunities	94

• Assessment of likelihood of the Risks	94		• Shariah Advisor's Report to the
• Key Uncertainties affecting the Business	94		Board of Directors	139
Stakeholders Relationship and Engagement			• Independent Auditor's Assurance Report on
		Shariah Compliance to the Board of Directors	141
			• Statement of Compliance with the
• Key Stakeholders	96		Shariah Principles	143
• Stakeholders Engagement	97		• Independent Auditor's Report to the members	144
• Stakeholders Engagement & Relationship	98		Financial Statements
• Stakeholders' Engagement Process & Frequency	100
• Investors Relations section on the Corporate			- Statement of Financial Position	150
Website	101		- Profit and Loss Account	151
• Investors Grievance	101		- Statement of Comprehensive Income	152
• Corporate Briefing Session	101		- Cash Flow Statement	153
• Encourage minority shareholders to attend			- Statement of Changes in Equity	155
Annual General Meeting (AGM)	101		- Notes to and Forming Part of the
Sustainability & Corporate Social Responsibility			Financial Statements	156
		• Statement of Directors	233
• Adopting the Sustainable Development Goals	104		• Statement by the Appointed Actuary	234
	Window Takaful Operation - Financial Report
• Highlights of Jubilee Life's Performance and
Initiatives towards Sustainability & CSR	105		Financial Statements
Financial Position and Performance
		- Statement of Financial Position	236
• Statement of Value Addition	108		- Profit and Loss Account	237
• Last Six Years Statement of Financial Position	110		- Statement of Comprehensive Income	238
• Last Six Years Statement of Profit & Loss	111		- Cash Flow Statement	239
• Last Six Years Summary of Cash Flow Statement	112		- Statement of Changes in Equity	240
• Last Six Years Summary of Free Cash Flow	113		- Notes to and Forming Part of the
• Last Six Years Capital Structure	114		Financial Statements	241
• DuPont Analysis	115		Other Information
• Financial Ratios	116
• Vertical Analysis	117
• Horizontal Analysis	119		• Pattern of Shareholdings	278
• Segmental Analysis	123		• Notice of 27th Annual General Meeting	281
• Quarter wise Analysis	124		• Proxy Form	285
• Share Price Analysis	125		Geographical Presence
• Comments on Financial Position,
Performance & Ratios	126		• Head office, Back Offices and Corporate Offices	288
Outlook
		• Branch Network	289
• Forward Looking Statement	128
• Implementation Status of IFRS 17	128
• Sources of Information and Assumptions
used for Projections / Forecast	128
Financial and Other Reports
• Independent Auditor's Review Report on the
Statement of Compliance with the CCG	132
• Statement of Compliance with the CCGI, 2016
and CCG Regulations, 2019	133
• Profile of Shariah Advisor	138