Investment and Portfolio Project Plan

Title: The investment activities/ operations incorporated by State Life

Insurance Company of Pakistan.

Prepared for
DR. Shaista Jabeen
DEPARTMENT OF MANAGEMENT SCIENCES
LAHORE COLLEGE FOR WOMEN UNIVERSITY, LAHORE
----------------------------------------------------------------------------------------------------

Prepared by
Khadija Khalid (40)
Sabbar Nisar (58)
Assia Iqbal (13)
Zarwa Akhtar (66)
Table of Contents

Introduction........................................................................................................................................3
Historical background of SLIC...........................................................................................................3
Type of investments in SLIC...............................................................................................................4
Investment activities/ investment products of SLIC...........................................................................5
SLIC Investment in funds.................................................................................................................23
SLIC Investment in Mutual funds (load or no-load funds)...............................................................24
SLIC Investment in derivatives or hybrid securities........................................................................24
Highlights of State Life Insurance Company operations..................................................................25
Conclusion........................................................................................................................................26
Research paper of 2024 of Khadija Khalid (40)................................................................................27
Research paper of 2023 of Sabbar Nisar(58).....................................................................................28
Research Paper of 2021 of Zarwa Akhtar (66)..................................................................................30
Research Paper of 2022 of Assia Iqbal (13).......................................................................................31

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 State life insurance company
Introduction
State Life Insurance Corporation of Pakistan (SLIC) (the Corporation) was
incorporated on November 1, 1972, under the Life Insurance Nationalization
Order, 1972. Due to its well-established Agency Network of more than 90,000
salespeople, State Life has been Pakistan's largest Life Insurance Corporation
since 1972. The Life Insurance Business in Pakistan was nationalized in March
1972. Before 1972, 32 Life Insurance companies were involved in the life
insurance business. These companies were later merged and placed under three
Beema Units named “A”, “B” and “C”. Later, these Beema Units were merged
on November 1, 1972, and the State Life Insurance Corporation of Pakistan came
into existence. The major function of the State Life Insurance Corporation of
Pakistan is to carry out the Life Insurance Business; however, it is also involved in
other business activities such as investment of policyholders’ funds in Government
securities, Stock market Real Estate, etc.

Historical background of SLIC

Here's a brief historical background of State Life Insurance Company:
 Establishment: November 1, 1972, under Life Insurance Nationalization Order.
 Nationalization: 32 life insurance companies operating in Pakistan were
nationalized.
 Initial Capital: PKR 100 million (approximately USD 650,000).
 Initial Workforce: Around 1,500 employees.
 Expansion: The branch network expanded across Pakistan.
 New Products: Introduced new life insurance products and services.
 Investment Diversification: Diversified investment portfolio.
 Digital Transformation: Underwent digital transformation to modernize
operations.
 Risk Management: Strengthened risk management framework.
 Market Leadership: A maintained position as Pakistan's largest life insurance
company.

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 Type of investments in SLIC

Is SLIC a Direct or Indirect investment company?

State Life Insurance Company is a direct investment company.
As a life insurance company, State Life invests directly in various assets, such as:
 Government securities (e.g., bonds, T-bills)
 Stocks (listed on the Pakistan Stock Exchange)
 Real estate (commercial and residential properties)
However, State Life also invests indirectly through:
 Mutual funds
 Unit trusts
 Private equity funds
 Real Estate Investment Trusts (REITs)
So, while State Life has both direct and indirect investments, its primary
investment approach is direct.

Is SLIC an individual investor or an institutional investor?

State Life Insurance Company is an institutional investor.
As an institutional investor, State Life Insurance Company invests funds on
behalf of its policyholders, with the primary objective of generating returns to meet
future claims and benefits.
Characteristics of institutional investors like State Life Insurance Company:
1. Professional management: Investments are managed by experienced
professionals.
2. Large-scale investments: Institutional investors typically invest large sums of
money.
3. Diversified portfolios: Investments are spread across various asset classes to
manage risk.

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4. Long-term focus: Institutional investors often have a long-term investment
horizon.
5. Regulatory oversight: Institutional investors are subject to regulatory
requirements and guidelines.

Investment activities/ investment products of SLIC

The following are the investment products of State Life Insurance Company:
1. Empower your Life
2. Protect your Health
3. Takaful Products
4. Secure your Family
5. Insurance Through Banks
6. Wealth Management
7. Retirement Plans
8. Protect your Employees
9. Digital Insurance
10. Gulf Products
11. Alpha Insurance
Now we will discuss each product in detail
1. Empower your life Products
This product of state life insurance explains how to Empower Yourself, Secure
Your Future, and protect every step with State Life, Your Trusted Partner to
Financial Well-Being. Life's journey is an unpredictable ride, filled with highs
and lows.
"Empower Your Life" is a flagship product suite offered by the State Life
Insurance Corporation of Pakistan that includes a variety of life insurance
plans tailored to meet the diverse needs of policyholders. These plans focus on
financial security, savings, and long-term protection. Below are the key
features and benefits of the "Empower Your Life" plans:

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 i. Whole Life Assurance
 Coverage: Lifetime protection for beneficiaries.
 Premium Payment: Throughout the insured's lifetime.
 Benefit: A lump sum paid to the beneficiary upon the policyholder's demise.

ii. Limited Payment Whole Life Assurance

 Coverage: Lifetime protection.
 Premium Payment: Limited to a specified number of years.
 Benefit: Suitable for those who want lifetime coverage but prefer a shorter
premium payment term.

iii. Anticipated Endowment

 Coverage: Savings and protection combined.
 Features:
 Periodic payouts during the policy term.
 Lump sum at maturity or in case of death.
 Benefit: Ideal for funding education, marriage, or other milestones.

iv. Endowment Assurance

 Coverage: Protection plus savings.
 Features:
A lump sum is payable at maturity or upon the policyholder's demise.
 Benefit: Encourages disciplined savings for long-term financial goals.

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 v. Mortgage Protection Plans
Purpose: Designed to cover outstanding mortgage loans.

Payment:
 Annual Premium Option
 Single Premium Option
Benefit: Secures the insured's family against unpaid loans.

vi. Sunheri Policy

 Coverage: Savings-oriented plan.
 Features:
 Lump sum at maturity.
 Focus on long-term financial stability.
 Benefit: Ideal for retirement or significant financial goals.

vii. Nigheban Plan

 Coverage: Financial security for families.
 Payment Options:
 Annual Premium Option
 Single Premium Option
 Benefit: Ensures dependents are financially stable after the policyholder's
demise.

viii. Sadabahar Plan

 Coverage: Lifelong protection with limited premium payments.
 Benefit: Convenience for policyholders seeking long-term security with
reduced payment terms.

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ix. Mahfooz Plan
 Coverage: Financial protection and guaranteed returns.
 Benefit: Provides peace of mind with secured savings.

Key Benefits Across All Plans

 Flexible Premium Options: Based on the policyholder's financial capacity.
 Loan Facility: Available against policies.
 Bonuses: Participation in State Life’s profits.
 Tax Relief: Tax benefits on premiums paid.

Overall Risk Level: Low

The "Empower Your Life" plans are low-risk investment options, ideal for
individuals prioritizing:
- Guaranteed capital preservation.
- Predictable returns.
- Financial security over high-yield market investments.

For those seeking higher returns, alternative investments like mutual funds or
equity-linked plans may be better suited, but they come with significantly
higher risk.

2. Protect your health Products

The health insurance plans are designed to provide you and your loved ones
with the protection and peace of mind you deserve. Whether it's covering
medical expenses, safeguarding, and ensuring access to healthcare services
when needed.
Here are the key details of the Protect Your Health products:

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 i. Haari Plan
Most of our country’s population lives in towns and villages. The economic
problems of the rural population are different from those of the urban
population. State Life has developed a plan to provide life insurance benefits to
the majority of the country’s population, which is living in rural areas.
ii. Sahara Family Health
This product aims to provide financial protection to a family in case of an
unfortunate illness or accident that leads to hospitalization.
iii. Sehat Zindagi
The objective of this product is to provide financial protection to an individual
in case of an unfortunate illness or accident that leads to hospitalization.
iv. Sinf e Ahan
This product intends to provide financial protection to women against the
diagnosis of cancer at a very affordable cost.
Scope of Cover
The following cancers are covered under this product:
- Leukemia, malignant lymphoma including cutaneous lymphoma, Hodgkin’s
disease, malignant bone marrow disorders, and sarcoma.
Overall risk level- low to moderate
The overall risk level of the "Protect Your Health" product suite offered by State
Life Insurance is generally low to moderate, as these plans are designed to
provide financial security for healthcare expenses without exposure to market
fluctuations or investment risks.
3. Takaful products
State Life Insurance Corporation of Pakistan offers a range of Takaful
products, Shariah-compliant alternatives to conventional insurance. These
products operate on cooperation, solidarity, and shared responsibility, aligning
with Islamic financial ethics.

Here are some of the Takaful products offered by State Life:

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 i. Takaful Savings Plan
A Shariah-compliant unit-linked plan designed to help individuals save
systematically while providing financial protection. It offers flexibility in
premium payments and a range of optional riders for enhanced coverage.

ii. Takaful Child Education & Marriage Plan

Aimed at securing your child's future educational and matrimonial expenses,
this plan combines savings with Takaful coverage, ensuring funds are
available when needed.

iii. Takaful Endowment Plan

This plan offers a combination of savings and protection, providing a lump
sum benefit at the end of the policy term or in the event of the participant's
untimely demise.

iv. Takaful Golden Endowment Plan

Aimed at individuals seeking long-term savings with financial protection, this
plan offers higher coverage and potential for growth through Sharia-compliant
investments.

v. Pak Sehat Takaful Plan

Designed to provide comprehensive health coverage, this plan safeguards you
and your family against unforeseen medical expenses, ensuring access to
quality healthcare services.

Financial Benefits of Takaful Products

 Mutual Risk Sharing: Contributions are pooled to cover risks
collectively, reducing the financial burden on individuals.
 Protection with Savings: Combines financial protection (e.g., life, health,
or accident coverage) with systematic savings for future goals.
 Investment Growth: Contributions are invested in Shariah-compliant
avenues, generating profits that enhance savings.
 Tax Benefits: Contributions may qualify for tax deductions, reducing
taxable income.
 Flexibility: Participants can tailor coverage, policy terms, and riders to
match financial needs and goals.

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  Family Security: Provides financial stability to beneficiaries through
death benefits and accumulated savings.
 Comprehensive Coverage: Addresses diverse needs such as education,
marriage, health expenses, and retirement planning.
 Profit Sharing: Surplus funds are distributed among participants, offering
additional financial gains.
 Ethical Management: Investments adhere to Shariah principles, ensuring
ethical and transparent fund management.
 Low Financial Risk: Funds are managed conservatively, offering stable
returns with minimal exposure to high-risk investments.

The overall risk level of Takaful products

The overall risk level of Takaful products offered by State Life Insurance is
generally low to moderate. Takaful products are designed to minimize risks
while providing ethical and Shariah-compliant financial security. The
structured approach ensures protection and savings with a balanced risk
profile.

4. Secure your family Products

The "Secure Your Family" product by State Life Insurance is designed to
provide financial protection and support to your family in case of unforeseen
events. The key features and plans under this category include:
Key Plans Under "Secure Your Family"
i. Child Protection Plan
 Joint life protection covering the life of a parent and child.
 Ensures financial support for the child's future in case of the parent's
demise.
ii. Family Pension Plan
 Provides a regular pension to the family upon the policyholder's death.
 Helps maintain financial stability for dependents.

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 iii. Jeevan Saathi Plan
 Joint life coverage for couples, ensuring financial security for both
partners.
 Suitable for dual-income families or homemakers.

iv. Child Education and Marriage Plan

 Helps secure funds for children's education and marriage.
 Combines savings and protection for future milestones.

v. Shehnai Plan
 Focused on saving for marriage expenses.
 Offers financial ease during wedding preparations.

Overall Risk Level: The "Secure Your Family" product has a low-risk level,
as it is focused on guaranteed life coverage and savings, with no direct
exposure to high-risk investments.

5. Insurance through banks Products

State Life Insurance Corporation of Pakistan offers a range of life insurance
solutions through partnerships with various banks, a distribution model
known as bancassurance. This collaboration allows customers to access State
Life's insurance products directly through their preferred banks, providing
convenience and integrated financial services.

Key Bancassurance Products:

i. Endowment Plan:
Description: A savings and protection plan designed to provide a lump sum
amount after a specified term or in the event of the policyholder's demise.
Benefits:
 Guaranteed maturity benefits.
 Life coverage throughout the policy term.

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  Optional riders for enhanced protection.
Available Through: National Bank of Pakistan.

ii. Sada Bahar Plan:

Description: A high-value savings and investment plan aimed at

accumulating funds for future needs such as children's education, marriage, or
purchasing a house.

Benefits:

 Flexible premium payment options.

 Life insurance coverage.
 Potential for capital growth through investments.

Available Through: Bank Alfalah.

iii. BetterLife Plans:

Description: Advanced insurance products tailored to provide financial

security for various life stages, including education and retirement planning.

Benefits:

 Comprehensive financial packages for specific needs.

 Life insurance coverage.
 Structured savings plans.

Available Through: United Bank Limited (UBL).

Advantages of Bancassurance with State Life:

 Convenience: Access to insurance products at your local bank branch.

 Integrated Services: Combining banking and insurance needs under one
roof.
 Tailored Solutions: Products designed to meet specific customer
requirements.
 Professional Advice: Bank staff trained to provide information on
insurance products.
6.Wealth Management Products
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 State Life Insurance offers a variety of Wealth Management plans, each
designed to meet specific financial goals while providing life insurance
coverage.

Key Wealth Management Products:

i. The Golden Endowment Plan is a comprehensive endowment plan that

ensures financial security with guaranteed maturity benefits and life
coverage. It also offers the added benefit of a loan facility after the third
premium, allowing policyholders to borrow against the net surrender value.
ii. The Endowment Assurance by Single Premium is a straightforward plan
that requires a one-time premium payment, offering life insurance protection
and lump sum maturity benefits at the end of the policy term.
iii. The Freedom Plus plan is a flexible, investment-linked insurance product
that allows policyholders to choose investment options according to their risk
preferences, giving them the potential for higher returns while maintaining
life coverage.
iv. The Platinum Plus plan caters to individuals seeking larger investment
opportunities combined with life insurance. This plan offers access to diverse
investment funds and provides the potential for significant capital
appreciation.

Risk Analysis of State Life's Wealth Management Plans:

Golden Endowment Plan

Risk Level: Low to Moderate
Risk Factors:
 Market fluctuations may affect returns.
 Loan against policy may reduce benefits.
Endowment Assurance by Single Premium
Risk Level: Low
Risk Factors:
 Fixed returns, limited exposure to market risk.
 Liquidity risk (funds are locked in for the term).
Freedom Plus
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 Risk Level: Moderate
Risk Factors:
 Market-linked investment with potential for high returns but also
volatility.
 Performance risk based on fund choices.
Platinum Plus
Risk Level: Moderate to High
Risk Factors:
 High market risk due to access to diverse investment funds.
 Liquidity risk (funds are not easily accessible before maturity).

Conclusion: The plans offer low to moderate risk, with higher risks in
investment-linked options, requiring careful selection and management.

7. Retirement Plans
State Life Insurance Corporation of Pakistan offers several retirement plans
designed to provide financial security during your retirement years. Here are
some of their key offerings:
i. Personal Pension Plan
This plan guarantees a pension for 25 years, with payments starting from the
8th policy year. If the policyholder lives beyond 25 years, the pension
continues for life. The plan participates in State Life's actuarial surplus from
the 7th policy year onwards.
ii. Immediate Annuity
Designed for individuals seeking immediate income, this plan provides
regular annuity payments starting immediately after a lump-sum premium
payment. It's suitable for those who have accumulated a retirement corpus
and wish to convert it into a steady income stream.
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 iii. Deferred Annuity by Single Premium
This plan allows policyholders to make a single premium payment, with
annuity payments commencing after a specified deferment period. It's ideal
for individuals planning for future retirement income, balancing immediate
investment and future financial security.
iv. Retirement Annuity Plan
Aimed at individuals planning for retirement, this plan offers a combination
of savings and insurance coverage, ensuring a regular income during
retirement years. Policyholders can choose the premium payment term and
the age at which they wish to start receiving the annuity.

8. Protect your Employee's Product

Their corporate Plans are distinctive savings and protection schemes
designed to benefit employers and employees. With their comprehensive
coverage, employees enjoy peace of mind throughout their tenure, knowing
they're protected against life's uncertainties. Upon retirement, they're
rewarded with a lump sum cash amount if they reach this milestone.

Key Features of Protect Your Employees Product:

i. Group Term Insurance Scheme

Overview: A cost-effective life insurance solution providing 24/7 coverage for
employees worldwide.
Benefits:
 Financial security for employees' families in case of death.
 Affordable premiums for employers.
 Coverage based on employee designation, salary, or job category.

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 ii. Pay continuation plan
Overview: Provides monthly income to the employee's family in case of their
untimely demise.
Benefits:
 Ensures regular financial support for up to 15 years or until the employee's
retirement age.
 Protects the family's standard of living.

iii. Education Continuation Plan

Overview: Ensures the continuation of children’s education in case of the

employee's death.

Benefits:

 Provides funds for dependent children’s education.

 Alleviates financial stress for families.

iv. Group Provident Fund Insurance Scheme

The Group Provident Fund Insurance Scheme by State Life Insurance
Corporation of Pakistan is a valuable offering that combines life insurance
coverage with employees' provident fund. It is designed to provide financial
security to employees and their families, while also helping employers fulfill
their social responsibilities.

Coverage: Life insurance coverage is provided based on the employee's age

and provident fund balance.
Benefits:

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  Employees receive additional life insurance coverage based on their
provident fund balance.
 Provides financial protection for the family in case of death.
Additional Benefits:
 If the scheme includes 200 or more members, profit sharing may be
available after three years.
 Coverage is enhanced by including benefits like Accidental Death,
Permanent Disability, and Critical Illness under optional add-ons
(riders).
Cost-effective: The premiums are affordable, as they are based on the annual
return of the provident fund balance, reducing the financial burden on
employees.

v. Accidental Death and Disability Insurance

 Coverage: Financial support for accidental death or disability.

 Features: Lump sum payout for death, compensation for partial or total
disability.
 Benefit: Additional layer of financial security.

vi. Group Annuity Scheme

The Group Annuity Scheme offered by State Life Insurance Corporation

of Pakistan is designed to provide employers with a structured retirement
solution for their employees. This scheme ensures a steady income stream for
employees post-retirement, enhancing their financial security.

Benefits for Employers:

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  Enhanced Employee Retention: Offering a retirement plan can improve
employee satisfaction and loyalty.
 Attractive Employee Benefit: A well-structured retirement plan serves as a
competitive advantage in attracting and retaining talent.
 Financial Planning: Employers can manage and plan for future financial
obligations related to employee retirement benefits.

 Financial Security: Ensures a reliable income source after retirement,

reducing financial uncertainties.
 Peace of Mind: Employees can focus on their work, knowing their post-
retirement financial needs are addressed.
 Additional Coverage: Access to supplementary benefits like life insurance
and health coverage enhances overall well-being.

9. Digital Insurance Product

State Life Insurance Corporation of Pakistan has embraced digital

transformation to enhance customer experience and accessibility. Through its
digital platforms, State Life offers a range of online services and products,
including:
 Online Policy Management: Policyholders can view and manage their
policies, make premium payments, and access policy documents through the
digital portal.
 Digital Health Insurance: State Life provides health insurance products that
can be purchased and managed entirely online, offering convenience and
quick access to coverage.

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  Customer Support: The digital platforms offer 24/7 customer support,
allowing policyholders to resolve queries and receive assistance without
visiting a physical branch.

10. Gulf Products

State Life Insurance Corporation of Pakistan offers a range of insurance
products tailored for expatriates residing in Gulf countries. These plans are
designed to provide financial security and cater to the unique needs of
individuals working abroad.

Key Gulf Products:

 Endowment Assurance
 Life coverage with a savings component.
 Guaranteed payout on policy maturity or death.
 Wealth Builder Plan
 7-year premium term with a 20-year coverage term.
 Helps build savings while offering life protection.
 Child Education & Marriage Plan
 Secures funds for a child’s education and marriage.
 Lump sum benefit at the end of the policy term.
 Shad Abad Assurance
 Joint life assurance plan for parents and children.
 Sum assured paid if either party passes away.
 Jeevan Saathi Plan
 Joint life plan covering policyholder and spouse.
 Provides financial protection for surviving spouse.

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  Supplementary Covers
 Additional coverage options like accidental death, disability, and
critical illness.
 Enhances the primary policy’s benefits.

These plans cater to expatriates in the Gulf region, offering life insurance and
savings options.

Overall risk level of gulf products

Overall, the Gulf products offered by State Life Insurance provide a blend of
low-risk options (with guaranteed benefits) and moderate-to-high-risk options
(with investment-linked returns).

11. Alpha Insurance

Alpha Insurance is a subsidiary of State Life Insurance Corporation of Pakistan,
established in 1951. It specializes in general insurance products, offering a
diverse range of coverage options to meet various client needs.
Key Offerings:
i. Marine & Aviation Insurance
 Description: Provides coverage for goods in transit via sea and air, as
well as insurance for aircraft operations.
 Benefits: Protects against risks associated with international shipping
and aviation activities.
ii. Motor Insurance
 Description: Offers protection for vehicles against accidents, theft,
and natural disasters.

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  Benefits: Ensures financial security in case of vehicle-related
incidents.
iii. Property Insurance
 Description: Covers buildings, machinery, and other assets against
damage or loss.
 Benefits: Safeguards physical assets from unforeseen events.

iv. Miscellaneous Insurance

 Description: Includes a variety of insurance products tailored to
specific needs.
 Benefits: Provides customized coverage options for unique
requirements.
v. Bonds
 Description: Offers surety bonds and guarantees for businesses.
 Benefits: Assures clients of financial reliability and performance.

Overall Risk Level of Alpha Insurance:

Moderate to High: While some products (like motor and property
insurance) carry moderate risk, others (such as marine, aviation, and bonds)
can involve higher risks due to their exposure to unpredictable events and
market conditions.

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SLIC Investment in funds
State Life Insurance Corporation of Pakistan invests its funds in accordance with
the provisions contained in Insurance Ordinance 2000, Insurance Rules 2002 and
SRO (309) K of 1970 as amended to date by the Government of Pakistan.
Govt. Securities: -
These include instruments issued by Government of Pakistan such as Treasury
bills, Pakistan Investment Bonds etc.
Equities
These include shares of quoted (within Pakistan) & unquoted companies in PSX.
Bank Deposits
These include Daily Product accounts & Term deposits with banks.
Loans to Policyholders
Loan provided to policyholders against their existing policies.
Investment Property
These include buildings, plots etc.
Others
These include Mutual Funds and Debt Securities (Foreign Fixed Income Securities
& Debentures).

SLIC Investment in Mutual funds (load or no-load funds)

the State Life Insurance Corporation (SLIC) typically invests in both load and no-
load funds as part of its investment strategy as SLIC does invest in mutual funds.
1. Load Funds: These are mutual funds that charge a sales fee or commission
when you buy (front-end load) or sell (back-end load) shares. The fee is usually a
percentage of the investment amount. Load funds are often actively managed, and
the fees can be used to cover marketing and distribution costs.

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2. No-Load Funds: These funds do not charge any sales fees. Investors can buy
and sell shares without incurring any additional costs. No-load funds are generally
more cost-effective for investors, as they allow for the full investment amount to be
put to work in the market.
SLIC may use a mix of both types of funds depending on the investment objectives
and strategies for the various insurance and investment products they offer.

SLIC Investment in derivatives or hybrid securities

State Life Insurance Corporation of Pakistan's investment portfolio seems to be

focused on more traditional assets. According to their financial reports, they invest
in instruments like Pakistan Investment Bonds. Loans and receivables are also
considered non-derivative financial assets with fixed or determinable payments.

While the SLIC website does not give explicit information on derivative securities
or hybrid securities, their financial statements do mention "available for sale
financial instruments". However, this doesn't necessarily imply investments in
derivatives or hybrid securities.

It's worth noting that State Life Insurance Corporation is engaged in various
insurance businesses, including life insurance, health insurance, accident
insurance, and takaful business. Their investment strategies might be influenced by
these business lines, but it appears they stick to more conventional investment
instruments.

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Highlights of State Life Insurance Company operations
State life insurance operations refer to the activities and processes managed by
state-run or state-regulated life insurance companies. These operations ensure the
provision of life insurance policies to individuals while maintaining compliance
with state regulations. Key aspects of state life insurance operations include:
1. Policy Management
 Offering various types of life insurance (e.g., term life, whole life,
universal life).
 Handling policy issuance, renewals, and claims.
2. Regulatory Compliance
 Ensuring adherence to state laws and guidelines for insurance.
 Submitting periodic reports and audits to state insurance departments.
3. Customer Service
 Providing support to policyholders for queries, grievances, and assistance
with claims.
 Maintaining transparency in policy terms and conditions.
4. Underwriting
 Assessing the risk of applicants to determine premium rates.
 Evaluating medical records, lifestyle factors, and financial stability.
5. Premium Collection and Fund Management
 Collecting premiums from policyholders.
 Investing funds to ensure profitability and meet future obligations.
6. Claims Processing
 Verifying claims and disbursing benefits to beneficiaries.
 Addressing disputes related to claims.
7. Marketing and Outreach
 Promoting insurance products to reach a broader audience.
 Educating citizens about the importance of life insurance.

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 Conclusion
State life insurance plays a vital role in providing financial security, promoting
savings, and fostering economic stability. By offering affordable and accessible
insurance products, it serves diverse populations, including marginalized and
low-income groups, while contributing to national financial inclusion and social
welfare initiatives.
The integration of technology, innovative product development, and a customer-
centric approach ensures efficient service delivery and scalability. Furthermore,
state life insurance organizations balance their commercial objectives with
broader social responsibilities, such as supporting government welfare programs
and disaster relief efforts.
Through strong governance, effective risk management, and sustainable
practices, state life insurance continues to be a cornerstone of economic
resilience and social protection. This project highlights its multifaceted
operations, strategic contributions, and potential for driving inclusive growth in
society.

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Research paper of 2024 of Khadija Khalid (40)
Title of research paper: Attitude and Perceptions of People Towards Life
Insurance Policies as Social Safety Net: A Qualitative Analysis
Author name: Muhammad Roman
Year published: 2024
Introduction
This research is conducted to explore the use of life insurance among the public of
Pakistan. Life insurance can be seen as a socio-economic safety net for people.
Ehsas Kafalat and Benazir Income Support Program (BISP) are social safety nets
in Pakistan. The BISP, in association with the State Life Insurance Corporation of
Pakistan, provides beneficiaries with life insurance facilities. Very few efforts have
been made by researchers and academicians to study the perception of life
insurance policies among the general population. Therefore, this study aims to
enrich this area by exploring these factors of life insurance in Faisalabad city of
Pakistan.
Methodology
The current research is qualitative. Focus group discussion sessions were arranged
with adults aged between 25 and 45 years. Secondary education was the minimum
qualification of each participant. The sessions were arranged in Faisalabad City.
Two FGDs were conducted in each town. The sample was drawn using a purposive
sampling technique for the focus group discussion. The questioning & probing was
carried out in the native languages to get detailed information. The response of the
participants was then interpreted in English.
Conclusion
This study was designed to assess the perceptions and attitudes of Pakistani people
towards life insurance. It was found, that the majority of the participants were not
in favor of life insurance policies. Several factors were identified associated with
the lack of life insurance policies. The small number of policyholders was found to
be associated with the lack of awareness, lack of education, financial conditions,
mistrust, and socio-cultural and religious factors. Complicated policies and
untrained staff of the insurance companies were also found to be serving as
primary causes of lack of interest by people in life insurance policies. As a result,
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the life insurance industry is not growing and a limited number of people are
gaining the remunerations of life insurance.

Research paper of 2023 of Sabbar Nisar(58)

Author name
Jawad Khalil
Year published
2023
Intro Of Research Paper
E insurance industry dramatically influences the evolution of
financial institutions. The insurance industry provides excellent financial
services for the long-term expansion and expansion of the overall
economy. According to Yuvaraj and Abate (2013), insurance firms
perform an essential part in the financial sectors. The efficiency and
performance of the firms are based on different factors the outcomes of this
study will provide some important factors that significantly influence the
efficiency of firms. This study is crucialfor Takaful and
conventional insurance firms, as well as strategy makers, as it can help
identify weaknesses in the insurance sector in Pakistan.

Methodology
This is a quantitative research study that utilizes longitudinal data from
insurance firms operating in Pakistan from 2012 to 2018. The study utilizes
secondary sources of data, specifically the annual financial reports of
both conventional and Takaful insurance companies. The population of
the study is composed of 50 conventional insurance companies, 9 life
insurance companies, and 41 non-life insurance companies, including 5
Islamic insurance firms (Pakistan Economic Survey, 2019).For the
purpose of comparing the efficiency of conventional and Takaful
insurance companies in Pakistan, this study selected conventional
insurance companies with asset sizes comparable to Takaful insurance
companies. Out of the 45 conventional insurance companies operating
in Pakistan, only four were selected for this study: Pak-Qatar Family
Takaful Limited (PQFTL), Pak-Qatar General Takaful Limited
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 (PQFTL), and Takaful Pakistan Limited (TPL). The data used for
conducting the efficiency analysis was collected from the annual financial
reports of these companies from the years 2012 to 2018, resulting in a
total of seven years of data.

Conclusion
The relation between corporate governance and firm performance has
emerged as a prominent area of research, capturing the attention of
academics and researchers. Despite an abundance of empirical literature
on the subject, the outcomes of these investigations have proven
inconclusive. This research aims to explore the influence of corporate
governance on the financial performance of Pakistani insurance
companies. The empirical analysis utilizes data from a panel of 35
insurance firms spanning the period from 2004 to 2022, employing the
random effect technique for model estimation. Profitability, measured by
Return on Assets (ROA), serves as the key variable of the study. The
findings suggest that profitability in Pakistan’s insurance sector is
notably influenced by factors such as leverage, liquidity, premium
growth, risk, and corporate governance. On the other hand, age,
tangibility, and inflation appear to have no significant correlation with
performance in the insurance industry. Corporate governance stands out as
a crucial variable, exerting a substantial and varied impact on these
companies.

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Research Paper of 2021 of Zarwa Akhtar (66)
 AUTHOR
Muhammad Ali, Lecturer, Department of Commerce, University of Punjab, Lahore, Pakistan
 INTRODUCTION
The insurance industry plays a vital role in the economic development of a country. In Pakistan,
the insurance industry has grown significantly over the years, with a total premium of Rs. 257
billion in 2021. However, the industry still faces several challenges, including low penetration,
lack of awareness, and limited financial resources. This study aims to analyze the financial
performance of insurance companies in Pakistan and identify the key factors that affect their
performance.
 METHODOLOGY
This study uses a quantitative research approach to analyze the financial performance of
insurance companies in Pakistan. The data is collected from the annual reports of 10 insurance
companies listed on the Pakistan Stock Exchange (PSX) for the year 2021. The study uses
descriptive statistics and multiple regression analysis to analyze the data.
 CONCLUSION
The study concludes that the financial performance of insurance companies in Pakistan is
significantly affected by factors such as gross premiums, claims, and expenses. The study
recommends that insurance companies should focus on increasing their gross premiums,
reducing their claims, and controlling their expenses to improve their financial performance.
Additionally, the study suggests that the government should take initiatives to increase awareness
about insurance products and promote the development of the insurance industry in Pakistan.

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Research Paper of 2022 of Assia Iqbal (13)
 AUTHOR
Syed Muhammad Ali, Assistant Professor, Department of Business Administration, Lahore
University of Management Sciences (LUMS), Lahore, Pakistan
 INTRODUCTION
The insurance industry in Pakistan has witnessed significant growth in recent years, driven by
increasing demand for insurance products and services. However, the industry still faces several
challenges, including low penetration, lack of awareness, and limited financial resources. Digital
transformation has emerged as a key strategy for insurance companies to improve their
operational efficiency, enhance customer experience, and increase their market share. This study
aims to explore the challenges and opportunities of digital transformation in the insurance
industry of Pakistan.
 METHODOLOGY
This study uses a mixed-methods approach, combining both qualitative and quantitative data
collection and analysis methods. The data is collected from primary and secondary sources,
including surveys, interviews, and literature reviews. The study uses descriptive statistics,
inferential statistics, and thematic analysis to analyze the data.
 CONCLUSION
The study concludes that digital transformation is a crucial strategy for insurance companies
in Pakistan to improve their operational efficiency, enhance customer experience, and
increase their market share. However, the study also identifies several challenges, including
lack of infrastructure, limited digital literacy, and regulatory constraints. The study
recommends that insurance companies should invest in digital technologies, develop digital
literacy among their employees and customers, and collaborate with regulatory authorities to
create a favorable business environment.

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