1. Submitted By:
Zeeshan Iqbal
Submitted To:
Sir Sarwar
Project:
Analysis of Universal Insurance
Financial Statement
Registration ID:
G1F13MCOM0067

2. Analysis of financial statement
Universal Insurance Page 2
Contents
S.No Description Page No
1 Introduction & History 2
2 Vision & Mission 3
3 Services 4-5
4 Analysis of Audit Report 6
5 Share Holding Pattern 7-9
6 Balance Sheet 10-11
7 Vertical & Horizontal Analysis of Balance Sheet 12-15
8 Profit & Loss Account 16
9 Vertical & Horizontal Analysis of Profit & Loss A/c 17-18
10 Ratio Analysis 19-28
11 Conclusion & Recommendation 29

3. Analysis of financial statement
Universal Insurance Page 3
Introduction:
We are in the business of providing a full range of non-life insurance products and services
modified to meet the diverse needs of a wide range of business and industrial clients as well
as individuals, providing Property, Marine/Aviation, Motor and other Miscellaneous
products. The most important aspect of our operation is that we have created a separate Risk
Management Team and an Engineering Group who work closely with clients to identify
various risk exposures and then provide specific insurance. This helps in loss prevention and
reducing the cost of premium. Our market-driven team of inspired and technically qualified
insurance personnel, specializing in civil, mechanical, metallurgy, electronics and having
overseas linkages, is on-call for necessary professional advice at all times. It is our policy not
only to provide protection and risk reduction but help clients develop preventive capabilities
to avert major perils and calamities.
History:
The Universal Insurance Company Limited – a part of Bibo Gee Group of Companies was
established by an eminent industrialist the late Lt. Gen. R. M. Habib Ullah Khan Khattak .
This Company entered into insurance market in 1960.
The company is fully protected through its world renowned insurers which are:
 Hanover Reinsurance Company
 Pakistan Re-Insurance Company
Due to vast and diversified reinsurance planning the Universal Insurance Company is capable
to underwrite risks of heavy magnitude. For larger industrial risks Company has rank
facultative reinsurance planning with local insurance companies.

4. Analysis of financial statement
Universal Insurance Page 4
Vision Statement:
“Universal Insurance Company Limited recognizes the importance of satisfying our
customers by consistently providing quality insurance service in accordance with their needs
and expectations. We strive to be competent partner of our customers against insured perils”
Mission Statement:
“We strive to provide our customers cost effective insurance cover by continually increasing
the productivity of our employees. To increase productivity, we conduct regular training
programs during which employees are assessed and allocated a career path in accordance
with their performance”

5. Analysis of financial statement
Universal Insurance Page 5
Services of Universal Insurance:
 Motor Insurance
 Private Car Comprehensive Insurance
Full Comprehensive coverage (as more specifically defined in our standard Private
Car comprehensive policy) against accidental loss and/or damage and/or theft of the
motor vehicle, including legal liability of the participant, to Third Parties arising out
of the use of the motor vehicle. The Policy is also extended to cover the risk of
Terrorism to the extent of the full sum covered of the vehicle.
 Motorcycle Comprehensive Insurance
Full Comprehensive coverage (as more specifically defined in our standard
Motorcycle comprehensive policy) against accidental loss and/or damage and/or theft
of the motorcycle, including legal liability of the participant to Third Parties arising
out of the use of the motorcycle. The Policy is also extended to cover the risk of
Terrorism to the extent of the full sum covered of the motorcycle.
 Marine Insurance
The coverage can be provided on the following basis:
ANNUAL BASIS: In case of frequent shipments it will be cumbersome, if not
altogether difficult, to need issuance of a Marine Cargo policy each and every time.
To solve this problem, a single policy is issued to cover all the shipments during the
year. Each shipment affected during the policy period is endorsed therein by means of
a declaration of shipment. The policy is normally issued for a 12-months’ period.
The coverage of policy is based on the type of cargo. We provide insurance coverage
for all kinds of commodities including, but not limited to, steel products, bulk oil
cargoes, containerized products etc. This policy covers various type of cargo
transported by sea, air as well as by land conveyance. Extent of cover varies from a
limited TLO to an all risk comprehensive cover in accordance with the internationally
recognized ‘Institute Cargo Clause ‘A’, ‘B’ or ‘C’.

6. Analysis of financial statement
Universal Insurance Page 6
 Fire Insurance
 Fire Consequential Loss Insurance
A material damage that is covered under your Fire & allied perils policy may result is
business interruption that may cause even a greater loss. Our Fire Consequential Loss
policy is tailored to avoid such losses and covers loss of profit and increased cost of
working, standing charges or overheads during the period between the stoppage of
production consequent upon loss or damage due to fire and allied perils provide that
at the time of the happening of the damage there shall be in force a Fire Policy
covering the same interest.
 Miscellaneous Insurance
 Burglary Insurance
This policy provides coverage loss and/or damage to the participant’s property whilst
within the business premises against the risks of Theft/Burglary consequent upon
forcible and violence entry. The policy also covers damage to the premises resulting
from attempted Theft/Burglary. The policy is however issued only in conjunction
with fire and allied perils policy.
 Travel Insurance
Travel insurance is a type of insurance that cover the medical expenses that could
arise while you are traveling. It can be purchased for trips of any length (be it five
days or two years), and can be tailored to your specific needs. Travel insurance is
typically sold as either: a package plan or a travel medical plan.
 Claim Settlement Procedures
 Claim is entered “online” immediately on intimation and surveyor is appointed
through system generated surveyor appointment letter.
 Claim department is in touch with surveyor to complete survey proceedings as early
as possible.
 On receipt of survey report / attachments the claim file is reviewed by the claim
department. Claim up to Rs-50,000 are settled by claims department and claims
exceeding Rs-50,000 are put up before committee and approved as per
recommendation / assessment of surveyor.
 On approval from claims committee loss vouchers are issued and file is forwarded to
Accounts department for issuance of claim cheque.
 All complaints pertaining to claims are handled by claims department.

7. Analysis of financial statement
Universal Insurance Page 7
Analysis of Audit Report
Year 2014:
The audit report of Universal Insurance is conducted as December 31, 2014. Universal
Insurance approved by the company ordinance 1984 and insurance ordinance 2000. They
make their financial statement according to the set standard. We conduct the audit
accordance with the international standards on auditing as applicable in Pakistan. Company
provides all information to the auditor and auditor gives his opinion:
This report is unqualified declared by the auditor because there is no mistake and
company follows the approved standards. They kept proper books of account by the
company ordinance 1984 and insurance ordinance 2000.
Year 2013:
This report is unqualified declared by the auditor because there is no mistake and
company follows the approved standards. They kept proper books of account by the
company ordinance 1984 and insurance ordinance 2000.
Year 2012:
This report is unqualified declared by the auditor because there is no mistake and
company follows the approved standards. They kept proper books of account by the
company ordinance 1984 and insurance ordinance 2000.
Year 2011:
This report is unqualified declared by the auditor because there is no mistake and
company follows the approved standards. They kept proper books of account by the
company ordinance 1984 and insurance ordinance 2000.
Year 2010:
This report is unqualified declared by the auditor because there is no mistake and
company follows the approved standards. They kept proper books of account by the
company ordinance 1984 and insurance ordinance 2000.

8. Analysis of financial statement
Universal Insurance Page 8
Share Holder Pattern
Year 2014
“Associated Companies, Undertakings and Related Parties have major control in
universal insurance instead of others. General Public has second major control in
Universal Insurance”

9. Analysis of financial statement
Universal Insurance Page 9
Year 2013:
“Associated Companies, Undertakings and RelatedParties have major control in
universal insurance instead of others. General Public has second major control in
Universal Insurance”
Year 2012:
“Associated Companies, Undertakings and Related Parties have major control in
universal insurance instead of others. General Public has second major control in
Universal Insurance”

10. Analysis of financial statement
Universal Insurance Page 10
Year 2011:
“Associated Companies, Undertakings and Related Parties have major control in
universal insurance instead of others. General Public has second major control in
Universal Insurance”
Year 2010:
“Associated Companies, Undertakings and Related Parties have major control in
universal insurance instead of others. General Public has second major control in
Universal Insurance”

11. Analysis of financial statement
Universal Insurance Page 11
BALANCE SHEET
BALANCE SHEET 2014 2013 2012 2011 2010
Authorized share capital 50,000,000 (2013:
50,000,000) ordinary shares of Rupees 10
each 500,000 500,000 500,000 500,000 500,000
Issued, subscribed and paid-up share capital 370,000 300,000 300,000 300,000 262,500
Accumulated loss -266,854 -236,603 -170,980 -106,484 -43,630
Reserves 14,489 14,489 14,360 14,249 14,127
-252,365 -222,114 -156,620 -92,235 -29,503
TOTAL EQUITY 117,635 77,886 143,380 207,765 232,997
Share deposit money 0 70,000 0 0 0
Surplus on revaluation of fixed assets 242,578 240,332 247,442 230,544 211,373
UNDERWRITING PROVISIONS 0 0 0 0 0
Provision for outstanding claims (including
IBNR) 272,601 353,735 296,614 319,304 318,351
Premium deficiency reserve 825 620 2,134 1,242 0
Provision for unearned premium 19,067 23,297 81,272 136,314 155,657
Commission income unearned 5,269 2,232 6,584 10,717 12,936
Totalunderwriting provisions 297,762 379,884 386,604 467,577 486,944
DEFERRED LIABILITY 0 0 0 0 0
Deferred taxation 0 0 0 0 2,300
Employee benefit - unfunded 4,596 6,052 5,516 16,328 276
CREDITORSAND ACCRUALS 0 0 0 0 0
Premiums received in advance 786 365 353 0 0
Amounts due to other insurers / reinsurers 76,786 52,018 30,977 56,462 93,714
Accrued expenses 32,307 43,683 34,050 26,898 9,715
Accrued mark-up on borrowing 566 0 0 0 1,200
Other creditors and accruals 47,955 61,464 61,076 59,414 59,473
TOTAL CREDITORS 158,400 157,530 126,456 142,774 164,102
BORROWING 0 0 0 0 0
Liabilities against assets subject to finance
lease 0 0 0 628 2,447
Short term running finance 22,185 0 0 0 0
OTHER LIABILITIES 0 0 0 0 0
Deposits against performance bonds 2,993 2,826 2,826 2,946 3,538
Unclaimed dividends 610 610 610 610 610
TOTAL LIABILITIES 486,546 546,902 522,012 630,863 660,217
CONTINGENCIES AND 0 0 0 0 0

12. Analysis of financial statement
Universal Insurance Page 12
COMMITMENTS
TOTAL EQUITY AND
LIABILITIES 846,759 935,120 912,834 1,069,172 1,104,587
CASH AND BANK DEPOSITS 0 0 0 0 0
Cash and other equivalents 1 8 32 33 81
Current and other accounts 22,231 18,790 21,688 89,619 83,628
Deposits maturing within 12 months 100,000 141,200 40,155 40,000 4,600
TOTAL 122,232 159,998 61,875 129,652 88,309
INVESTMENTS 157,447 138,297 134,967 135,201 160,175
DEFERRED TAXATION 33,191 33,191 33,191 35,240 0
CURRENT ASSETS -OTHERS 0 0 0 0 0
Premiums due but unpaid - unsecured 29,074 59,984 93,948 114,512 142,716
Amounts due from other insurers / reinsurers
– unsecured 157,903 118,349 119,405 128,443 162,935
Salvage recoveries accrued 0 0 1,050 2,500 2,910
Accrued investment income 24 3,513 2,494 530 124
Reinsurance recoveries against outstanding
claims 127,148 182,884 148,759 177,750 193,437
Taxation - payment less provision 8,801 7,258 6,452 5,848 0
Deferred commission expense 3,457 3,761 12,649 23,242 27,065
Prepayments 10,238 9,278 31,589 48,625 62,263
Loans to employees - unsecured 82 396 926 1,096 643
Sundry receivables 5,577 17,049 9,178 9,927 16,959
TOTAL 342,304 402,472 426,450 512,473 609,052
FIXED ASSETS - TANGIBLE
OWNED 0 0 0 0 0
Land and buildings 172,407 176,167 221,482 205,862 185,280
Furniture, fixtures and office equipment 5,959 6,842 9,244 10,979 10,476
Computer equipment 2,510 3,328 5,039 5,615 7,495
Motor vehicles 10,709 14,825 19,219 32,441 38,833
LEASED Furniture, fixtures and office
equipment 0 0 0 0 1,390
LEASED Motor vehicles 0 0 1,367 1,709 3,577
TOTAL FIXED ASSET 191,585 201,162 256,351 256,606 247,051
TOTAL ASSETS 846,759 935,120 912,834 1,069,172 1,104,587

13. Analysis of financial statement
Universal Insurance Page 13
Vertical Analysis
BALANCE SHEET 2014 2013 2012 2011 2010
Authorized share capital 50,000,000 (2013:
50,000,000) ordinary shares of Rupees 10 each
Issued, subscribed and paid-up share capital 43.70% 32.08% 32.86% 28.06% 23.76%
Accumulated loss -31.51% -25.30% -18.73% -9.96% -3.95%
Reserves 1.71% 1.55% 1.57% 1.33% 1.28%
-29.80% -23.75% -17.16% -8.63% -2.67%
TOTAL EQUITY 13.89% 8.33% 15.71% 19.43% 21.09%
Share deposit money 0.00% 7.49% 0.00% 0.00% 0.00%
Surplus on revaluation of fixed assets 28.65% 25.70% 27.11% 21.56% 19.14%
UNDERWRITING PROVISIONS 0.00% 0.00% 0.00% 0.00% 0.00%
Provision for outstanding claims (including IBNR) 32.19% 37.83% 32.49% 29.86% 28.82%
Premium deficiency reserve 0.10% 0.07% 0.23% 0.12% 0.00%
Provision for unearned premium 2.25% 2.49% 8.90% 12.75% 14.09%
Commission income unearned 0.62% 0.24% 0.72% 1.00% 1.17%
Totalunderwriting provisions 35.16% 40.62% 42.35% 43.73% 44.08%
DEFERRED LIABILITY 0.00% 0.00% 0.00% 0.00% 0.00%
Deferred taxation 0.00% 0.00% 0.00% 0.00% 0.21%
Employee benefit – unfunded 0.54% 0.65% 0.60% 1.53% 0.02%
CREDITORSAND ACCRUALS 0.00% 0.00% 0.00% 0.00% 0.00%
Premiums received in advance 0.09% 0.04% 0.04% 0.00% 0.00%
Amounts due to other insurers / reinsurers 9.07% 5.56% 3.39% 5.28% 8.48%
Accrued expenses 3.82% 4.67% 3.73% 2.52% 0.88%
Accrued mark-up on borrowing 0.07% 0.00% 0.00% 0.00% 0.11%
Other creditors and accruals 5.66% 6.57% 6.69% 5.56% 5.38%
TOTAL CREDITORS 18.71% 16.85% 13.85% 13.35% 14.86%
BORROWING 0.00% 0.00% 0.00% 0.00% 0.00%
Liabilities against assets subject to finance lease 0.00% 0.00% 0.00% 0.06% 0.22%
Short term running finance 2.62% 0.00% 0.00% 0.00% 0.00%
OTHER LIABILITIES 0.00% 0.00% 0.00% 0.00% 0.00%
Deposits against performance bonds 0.35% 0.30% 0.31% 0.28% 0.32%
Unclaimed dividends 0.07% 0.07% 0.07% 0.06% 0.06%
TOTAL LIABILITIES 57.46% 58.48% 57.19% 59.00% 59.77%
CONTINGENCIES AND
COMMITMENTS 0.00% 0.00% 0.00% 0.00% 0.00%
TOTAL EQUITY AND LIABILITIES 100.00% 100.00% 100.00% 100.00% 100.00%

14. Analysis of financial statement
Universal Insurance Page 14
CASH AND BANK DEPOSITS 0.00% 0.00% 0.00% 0.00% 0.00%
Cash and other equivalents 0.00% 0.00% 0.00% 0.00% 0.01%
Current and other accounts 2.63% 2.01% 2.38% 8.38% 7.57%
Deposits maturing within 12 months 11.81% 15.10% 4.40% 3.74% 0.42%
TOTAL 14.44% 17.11% 6.78% 12.13% 7.99%
INVESTMENTS 18.59% 14.79% 14.79% 12.65% 14.50%
DEFERRED TAXATION 3.92% 3.55% 3.64% 3.30% 0.00%
CURRENT ASSETS -OTHERS 0.00% 0.00% 0.00% 0.00% 0.00%
Premiums due but unpaid - unsecured 3.43% 6.41% 10.29% 10.71% 12.92%
Amounts due from other insurers / reinsurers –
unsecured 18.65% 12.66% 13.08% 12.01% 14.75%
Salvage recoveries accrued 0.00% 0.00% 0.12% 0.23% 0.26%
Accrued investment income 0.00% 0.38% 0.27% 0.05% 0.01%
Reinsurance recoveries against outstanding claims 15.02% 19.56% 16.30% 16.63% 17.51%
Taxation - payment less provision 1.04% 0.78% 0.71% 0.55% 0.00%
Deferred commission expense 0.41% 0.40% 1.39% 2.17% 2.45%
Prepayments 1.21% 0.99% 3.46% 4.55% 5.64%
Loans to employees – unsecured 0.01% 0.04% 0.10% 0.10% 0.06%
Sundry receivables 0.66% 1.82% 1.01% 0.93% 1.54%
TOTAL 40.43% 43.04% 46.72% 47.93% 55.14%
FIXED ASSETS - TANGIBLE OWNED 0.00% 0.00% 0.00% 0.00% 0.00%
Land and buildings 20.36% 18.84% 24.26% 19.25% 16.77%
Furniture, fixtures and office equipment 0.70% 0.73% 1.01% 1.03% 0.95%
Computer equipment 0.30% 0.36% 0.55% 0.53% 0.68%
Motor vehicles 1.26% 1.59% 2.11% 3.03% 3.52%
LEASED Furniture, fixtures and office equipment 0.00% 0.00% 0.00% 0.00% 0.13%
LEASED Motor vehicles 0.00% 0.00% 0.15% 0.16% 0.32%
TOTAL FIXED ASSET 22.63% 21.51% 28.08% 24.00% 22.37%
TOTAL ASSETS 100.00% 100.00% 100.00% 100.00% 100.00%

15. Analysis of financial statement
Universal Insurance Page 15
Horizontal Analysis
BALANCE SHEET 2014 2013 2012 2011 2010
Authorized share capital 50,000,000 (2013:
50,000,000) ordinary shares of Rupees 10
each 100.00% 100.00% 100.00% 100.00% 100.00%
Issued, subscribed and paid-up share
capital 140.95% 114.29% 114.29% 114.29% 100.00%
Accumulated loss 611.63% 542.29% 391.89% 244.06% 100.00%
Reserves 102.56% 102.56% 101.65% 100.86% 100.00%
855.39% 752.85% 530.86% 312.63% 100.00%
TOTAL EQUITY 50.49% 33.43% 61.54% 89.17% 100.00%
Share deposit money #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Surplus on revaluation of fixed assets 114.76% 113.70% 117.06% 109.07% 100.00%
UNDERWRITING PROVISIONS #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Provision for outstanding claims (including
IBNR) 85.63% 111.11% 93.17% 100.30% 100.00%
Premium deficiency reserve #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Provision for unearned premium 12.25% 14.97% 52.21% 87.57% 100.00%
Commission income unearned 40.73% 17.25% 50.90% 82.85% 100.00%
Totalunderwriting provisions 61.15% 78.01% 79.39% 96.02% 100.00%
DEFERRED LIABILITY #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Deferred taxation 0.00% 0.00% 0.00% 0.00% 100.00%
Employee benefit - unfunded 1665.22% 2192.75% 1998.55% 5915.94% 100.00%
CREDITORSAND ACCRUALS #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Premiums received in advance #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Amounts due to other insurers / reinsurers 81.94% 55.51% 33.05% 60.25% 100.00%
Accrued expenses 332.55% 449.64% 350.49% 276.87% 100.00%
Accrued mark-up on borrowing 47.17% 0.00% 0.00% 0.00% 100.00%
Other creditors and accruals 80.63% 103.35% 102.70% 99.90% 100.00%
TOTAL CREDITORS 96.53% 96.00% 77.06% 87.00% 100.00%
BORROWING #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Liabilities against assets subject to finance
lease 0.00% 0.00% 0.00% 25.66% 100.00%
Short term running finance #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
OTHER LIABILITIES #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Deposits against performance bonds 84.60% 79.88% 79.88% 83.27% 100.00%
Unclaimed dividends 100.00% 100.00% 100.00% 100.00% 100.00%
TOTAL LIABILITIES 73.69% 82.84% 79.07% 95.55% 100.00%

16. Analysis of financial statement
Universal Insurance Page 16
CONTINGENCIES AND
COMMITMENTS #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
TOTAL EQUITY AND
LIABILITIES 76.66% 84.66% 82.64% 96.79% 100.00%
CASH AND BANK DEPOSITS #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Cash and other equivalents 1.23% 9.88% 39.51% 40.74% 100.00%
Current and other accounts 26.58% 22.47% 25.93% 107.16% 100.00%
Deposits maturing within 12 months 2173.91% 3069.57% 872.93% 869.57% 100.00%
TOTAL 138.41% 181.18% 70.07% 146.82% 100.00%
INVESTMENTS 98.30% 86.34% 84.26% 84.41% 100.00%
DEFERRED TAXATION #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
CURRENT ASSETS -OTHERS #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Premiums due but unpaid - unsecured 20.37% 42.03% 65.83% 80.24% 100.00%
Amounts due from other insurers /
reinsurers - unsecured 96.91% 72.64% 73.28% 78.83% 100.00%
Salvage recoveries accrued 0.00% 0.00% 36.08% 85.91% 100.00%
Accrued investment income 19.35% 2833.06% 2011.29% 427.42% 100.00%
Reinsurance recoveries against outstanding
claims 65.73% 94.54% 76.90% 91.89% 100.00%
Taxation - payment less provision #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Deferred commission expense 12.77% 13.90% 46.74% 85.87% 100.00%
Prepayments 16.44% 14.90% 50.73% 78.10% 100.00%
Loans to employees - unsecured 12.75% 61.59% 144.01% 170.45% 100.00%
Sundry receivables 32.89% 100.53% 54.12% 58.54% 100.00%
TOTAL 56.20% 66.08% 70.02% 84.14% 100.00%
FIXED ASSETS - TANGIBLE
OWNED #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Land and buildings 93.05% 95.08% 119.54% 111.11% 100.00%
Furniture, fixtures and office equipment 56.88% 65.31% 88.24% 104.80% 100.00%
Computer equipment 33.49% 44.40% 67.23% 74.92% 100.00%
Motor vehicles 27.58% 38.18% 49.49% 83.54% 100.00%
LEASED Furniture, fixtures and office
equipment 0.00% 0.00% 0.00% 0.00% 100.00%
LEASED Motor vehicles 0.00% 0.00% 38.22% 47.78% 100.00%
TOTAL FIXED ASSET 77.55% 81.43% 103.76% 103.87% 100.00%
TOTAL ASSETS 76.66% 84.66% 82.64% 96.79% 100.00%

17. Analysis of financial statement
Universal Insurance Page 17
Profit & Loss A/c
PROFIT AND LOSS ACCOUNT 2014 2013 2012 2011 2010
Revenue account 0 0 0 0 0
Net premium revenue 34,994 98,957 210,671 292,305 328,663
Net claims -2,205 -53,644 -101,608 -143,400 -177,037
Change in premium deficiency reserve -205 1,514 -892 -1,242 0
Expenses -34,187 -53,484 -82,248 -110,343 -125,391
Net commission 1,932 -11,117 -24,484 -39,343 -43,478
-32,255 -64,601 -106,732 -149,686 -168,869
Underwriting result 329 -17,774 1,439 -2,023 -17,243
Investment income 4,766 6,012 6,817 6,180 8,172
Rental income 12 1,418 1,400 1,164 1,164
Other income 23,285 13,020 17,762 9,933 4,978
28,392 2,676 27,418 15,254 -2,929
General and administration expenses -73,385 -93,076 -95,870 -121,319 -107,139
Financial charges -1,183 -393 -450 -348 -609
Share of profits from associates - net of
tax 5,153 3,390 3,230 -4,170 7,244
Loss before taxation -41,023 -87,403 -65,672 -110,583 -103,433
Taxation -4,816 -1,694 -584 45,775 16,948
-45,839 -89,097 -66,256 -64,808 -86,485
PROFIT AND LOSS
APPROPRIATION ACCOUNT 0 0 0 0 0
Balance of accumulated loss at the
commencement of the year -236,603 -170,980 -106,484 -43,630 38,627
Loss after taxation for the year -45,839 -89,097 -66,256 -64,808 -86,485
Other comprehensive income / (loss) for
the year 138 -34 -561 0 0
Items directly recognized in statement of
changes in equity 15,450 23,508 2,321 1,954 4,228
Balance of accumulated loss at the end
of the year -266,854 -236,603 -170,980 -106,484 -43,630
Loss per share - basic and diluted
- Rupees (Note 30) -1.34 -2.97 -2.21 -4.2 -7.82

18. Analysis of financial statement
Universal Insurance Page 18
Vertical Analysis
PROFIT AND LOSS ACCOUNT 2014 2013 2012 2011 2010
Revenue account
Net premium revenue 100.00% 100.00% 100.00% 100.00% 100.00%
Net claims -6.30% -54.21% -48.23% -49.06% -53.87%
Change in premium deficiency reserve -0.59% 1.53% -0.42% -0.42% 0.00%
Expenses -97.69% -54.05% -39.04% -37.75% -38.15%
Net commission 5.52% -11.23% -11.62% -13.46% -13.23%
-92.17% -65.28% -50.66% -51.21% -51.38%
Underwriting result 0.94% -17.96% 0.68% -0.69% -5.25%
Investment income 13.62% 6.08% 3.24% 2.11% 2.49%
Rental income 0.03% 1.43% 0.66% 0.40% 0.35%
Other income 66.54% 13.16% 8.43% 3.40% 1.51%
81.13% 2.70% 13.01% 5.22% -0.89%
General and administration expenses
-
209.71% -94.06% -45.51% -41.50% -32.60%
Financial charges -3.38% -0.40% -0.21% -0.12% -0.19%
Share of profits from associates - net of
tax 14.73% 3.43% 1.53% -1.43% 2.20%
Loss before taxation
-
117.23% -88.32% -31.17% -37.83% -31.47%
Taxation -13.76% -1.71% -0.28% 15.66% 5.16%
-
130.99% -90.04% -31.45% -22.17% -26.31%
PROFIT AND LOSS
APPROPRIATION ACCOUNT 0.00% 0.00% 0.00% 0.00% 0.00%
Balance of accumulated loss at the
commencement of the year
-
676.12%
-
172.78% -50.55% -14.93% 11.75%
Loss after taxation for the year
-
130.99% -90.04% -31.45% -22.17% -26.31%
Other comprehensive income / (loss) for
the year 0.39% -0.03% -0.27% 0.00% 0.00%
Items directly recognised in statement of
changes in equity 44.15% 23.76% 1.10% 0.67% 1.29%
Balance of accumulated loss at the end
of the year
-
762.57%
-
239.10% -81.16% -36.43% -13.27%
Loss per share - basic and diluted
- Rupees (Note 30) 0.00% 0.00% 0.00% 0.00% 0.00%

19. Analysis of financial statement
Universal Insurance Page 19
Horizontal Analysis
PROFIT AND LOSS ACCOUNT 2014 2013 2012 2011 2010
Revenue account 0.00% #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Net premium revenue 10.65% 30.11% 64.10% 88.94% 100.00%
Net claims -0.67% 30.30% 57.39% 81.00% 100.00%
Change in premium deficiency reserve -0.06% #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Expenses -10.40% 42.65% 65.59% 88.00% 100.00%
Net commission 0.59% 25.57% 56.31% 90.49% 100.00%
-9.81% 38.26% 63.20% 88.64% 100.00%
Underwriting result 0.10% 103.08% -8.35% 11.73% 100.00%
Investment income 1.45% 73.57% 83.42% 75.62% 100.00%
Rental income 0.00% 121.82% 120.27% 100.00% 100.00%
Other income 7.08% 261.55% 356.81% 199.54% 100.00%
8.64% -91.36%
-
936.09%
-
520.79% 100.00%
General and administration expenses -22.33% 86.87% 89.48% 113.24% 100.00%
Financial charges -0.36% 64.53% 73.89% 57.14% 100.00%
Share of profits from associates - net of tax 1.57% 46.80% 44.59% -57.56% 100.00%
Loss before taxation -12.48% 84.50% 63.49% 106.91% 100.00%
Taxation -1.47% -10.00% -3.45% 270.09% 100.00%
-13.95% 103.02% 76.61% 74.94% 100.00%
PROFIT AND LOSS
APPROPRIATION ACCOUNT 0.00% #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Balance of accumulated loss at the
commencement of the year -71.99%
-
442.64%
-
275.67%
-
112.95% 100.00%
Loss after taxation for the year -13.95% 103.02% 76.61% 74.94% 100.00%
Other comprehensive income / (loss) for the year 0.04% #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Items directly recognised in statement of changes
in equity 4.70% 556.01% 54.90% 46.22% 100.00%
Balance of accumulated loss at the end of the
year -81.19% 542.29% 391.89% 244.06% 100.00%
Loss per share - basic and diluted -
Rupees (Note 30) 0.00% 37.98% 28.26% 53.71% 100.00%

20. Analysis of financial statement
Universal Insurance Page 20
Ratios Analysis
Year 2014 2013 2012 2011 2010
Net Working Capital 183904 244942 299994 369699 444950
When current assets exceed current liabilities, the firm has enough capital to run its day-to-day
operations. In other words, it has enough capital to work. In this analysis the company
performance is better in 2010. This means that the company is more efficient as compared to other
years. Assets are more than its liabilities and the year in which the networking capital is 183904
means that liabilities are more than its assets. Company is not performing well in this year.
Year 2014 2013 2012 2011 2010
Operating Cash flow to Liabilities -0.54 -0.31 -0.77 -0.18 -0.62
In the analysis of operating cash flow, the trend is mixed. As you see in 2011 ratio is less than
2010 & 2012. In 2011 the liabilities is decrease and the operating cash is also decrease that’s why
the ratio is less than 2010. But in 2012 the liabilities is increase and operating cash is also increase
as compare to previous year. In 2014 the ratio is also look like as 2012 liabilities and operating
cash flow is going increase.
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
2014 2013 2012 2011 2010
Net Working Capital
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
2014 2013 2012 2011 2010
Net Working Capital

21. Analysis of financial statement
Universal Insurance Page 21
Year 2014 2013 2012 2011 2010
Cash to Current Liabilities 0.77 1.02 0.49 0.91 0.54
It shows that how many cash is available to meet the current liabilities. In 2013 the more cash is
available. Its mean company is performing good to meet its current requirements. In 2012 the ratio
is low its mean cash is not enough.
Year 2014 2013 2012 2011 2010
Cash to Current Assets 0.36 0.40 0.15 0.25 0.14
The Cash to Current Assets ratio measures a company’s liquidity, basing how liquid a company is
by its Cash and Cash Equivalents and Marketable Securities alone. In this analysis mixed trend
takes place. In 2014 this ratio increase and its mean that company pays its short liabilities easily. In
all year before 2014 the company may face the liabilities problem because cash is less in these
years.
0
0.2
0.4
0.6
0.8
1
1.2
2014 2013 2012 2011 2010
Cash to Current Liabilities
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
2014 2013 2012 2011 2010
Cast to Current Assets

22. Analysis of financial statement
Universal Insurance Page 22
Year 2014 2013 2012 2011 2010
Earning Assets to Total Assets 0.118 0.151 0.044 0.037 0.004
In 2014 it shows increasing trend and in 2010 it has low ratio. Its mean company is not performing
well and by passing years shows better result. It increases in 2011 and also increases in 2012 this
show the increasing trend occurs in company performance. Company uses its assets in better way
to earn profits. It’s earning assets increases from its total assets.
Year 2014 2013 2012 2011 2010
Return on Earning Assets 0.350 0.701 5.246 7.308 71.448
It shows how much company makes his profit by its earning assets. In 2014 the company return on
earning assets is low. It performance is better in 2014 as compared to other years.
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
2014 2013 2012 2011 2010
Earning Assets to Total Assets
0
10
20
30
40
50
60
70
80
2014 2013 2012 2011 2010
Return on Earning Assets

23. Analysis of financial statement
Universal Insurance Page 23
Year 2014 2013 2012 2011 2010
Equity Capital To Total Assets 0.14 0.08 0.16 0.19 0.21
This ratio is increased in year 2010. The reason is that in this year equity increased and assets
decreased. In 2011its ratio performance going down because its equity is less than the assets. In
2013 company performance is very low instead of other years but in 2014 the performance in
much better as compared with 2013.
Year 2014 2013 2012 2011 2010
Deposit Times Capital Ratio 0.85 1.81 0.28 0.19 0.02
It shows better performance in 2013 because the amounts of deposit increase as compared to other
years. In 2010 amounts of deposit is less so that it shows small ratio. In 2011, 2012 it shows
increase trend. In 2014 amounts of deposit is less as compared to 2013.
0
0.05
0.1
0.15
0.2
0.25
2014 2013 2012 2011 2010
Equity capital to Total Assets
0
0.5
1
1.5
2
2014 2013 2012 2011 2010
Deposit time capital ratio

24. Analysis of financial statement
Universal Insurance Page 24
Year 2014 2013 2012 2011 2010
Loan To Deposit 0.000169 0.000724 0.001774 0.001737 0.000974
In 2011, this ratio is increased because the loan to employees increased. In 2010 it shows less
amount of loan to employee. In 2012- 2014 it shows decreasing trend.
Year 2014 2013 2012 2011 2010
Net Profit Margin -131% -90% -31% -22% -26%
Net profit margin is a key financial indicator used to assess the profitability of a company. Net
profit margin is mostly used to compare company's results over time. In this analysis ratio
shows company is in loss last 5 years. It show net loss margin. In 2014 the company sales is less
than the previous years and the loss after tax is high as compare with the sale. In 2010 the ratio is
high as compare to 2011 because the company sale is high and loss after tax is low as compare to
2011 but from 2011 to 2014 show increasing trend.
0
0.0005
0.001
0.0015
0.002
2014 2013 2012 2011 2010
Loan to Deposit
-140%
-120%
-100%
-80%
-60%
-40%
-20%
0%
2014 2013 2012 2011 2010
Net Profit Margin

25. Analysis of financial statement
Universal Insurance Page 25
Year 2014 2013 2012 2011 2010
Total Debt To Total Assets 0.575 0.585 0.572 0.590 0.598
In 2010 this ratio is increased as compared to others years. The reason is that assets are less and the
debts are increased. In year 2012 show the better performance in which debts are less as compared
to other years. From 2010 to 2012 show decreasing trends but in 2013 increasing trend as compare
with previous years and in 2014 show decreasing trend as compare with 2013.
Year 2014 2013 2012 2011 2010
Return on Assets -0.054 -0.095 -0.073 -0.061 -
0.078
Company performance is not good. As in 2013 its performance is worse in which return on assets
going to biggest loss. In 2014 company is going to cover it and managing its assets but not going
to profit because the loss after tax is -266,854 and the total assets are 846,759. In 2013 the loss
after tax is -236,603 and the total assets are 935,120 that why the company performance is poor in
2013 as compare to other years.
0.555
0.56
0.565
0.57
0.575
0.58
0.585
0.59
0.595
0.6
2014 2013 2012 2011 2010
Total Debt to Total Liabilities
-0.1
-0.08
-0.06
-0.04
-0.02
0
2014 2013 2012 2011 2010
Return on Assets

26. Analysis of financial statement
Universal Insurance Page 26
Year 2014 2013 2012 2011 2010
Debt To Equity Ratio 4.14 7.02 3.64 3.04 2.83
The debt to equity ratio is compares a company's total debt to total equity. The debt to equity ratio
shows the company financing that comes from creditors and investors. A higher debt to equity
ratio indicates that more creditor financing is used than investor financing. Debt to equity ratio is
increased in 2013. This ratio is low in 2010 but in 2011 it’s increased and its mean amount of debt
is increased in this year. In 2012 ratio is little bit increase but in 2013 it shows highest figure and in
2014 its amount of debt decrease and equity increased that why it is low figured as compared to
2013 because in 2013 the liabilities are 546,902 and the total equity is 77,886 that why the ratio
show highest figure in 2013 as compare to other years.
Year 2014 2013 2012 2011 2010
Return on Equity -0.39 -1.14 -0.46 -0.31 -0.37
Return on Equity shows how much earnings from equity. In return on equity analysis 2013 is a
worse year as compare to others. In which its borrowing increase and the company is not in
position to earn profits. Its equity is also decreased in this year. In 2010 the equity is better than
last year as like in 2014 equity is better than 2013 it show less loss.
0
1
2
3
4
5
6
7
8
2014 2013 2012 2011 2010
Debt to Equity Ratio
-1.2
-1
-0.8
-0.6
-0.4
-0.2
0
2014 2013 2012 2011 2010
Return on Equity

27. Analysis of financial statement
Universal Insurance Page 27
Year 2014 2013 2012 2011 2010
Time Interest Earned
Ratio
-0.0150 -0.0045 -0.0069 -0.0031 -
0.0059
The times interest earned ratio that, measures the proportionate amount of income that can be used
to cover interest expenses in the future. The ratio indicates how many times a company could pay
the interest with it’s before tax income, so obviously the larger ratios are considered more
favorable than smaller ratios. In 2014 its interest loss is increased as compared to previous year so
that it shows the larger loss as compared to last year. In 2011 loss is better as compared to other
years.
Year 2014 2013 2012 2011 2010
Operating Profit Margin -1.31 -0.90 -0.31 -0.22 -0.26
Operating Profit margin is use to check how much expenses occur during the year. In this analysis
ratio show the mixed trend. In 2010 the expenses are -168,869 and the net premium is 328,663.
Due to that reason the operating profit margin result show in negative and in 2011 the ratio less
than the last year. But in 2012 to 2014 it shows the increasing trend in loss.
-0.016
-0.014
-0.012
-0.01
-0.008
-0.006
-0.004
-0.002
0
2014 2013 2012 2011 2010
Time Interest Earned Ratio
-1.4
-1.2
-1
-0.8
-0.6
-0.4
-0.2
0
2014 2013 2012 2011 2010
Operating profit Margin

28. Analysis of financial statement
Universal Insurance Page 28
Year 2014 2013 2012 2011 2010
Current Ratio 2.1610 2.5548 3.3723 3.5894 3.7114
Current ratio shows that whether or not company have enough resources to pay its liabilities over
next 12 months. Generally a ratio above more than 1 shows favorable result. In 2010 the ratio is
increased as compared to other years. In 2010 the assets are more than its liabilities. Company is
performing well as compared to other years. In 2011 current ratio is going down. In 2013 its ratio
is going more down. In 2014 the company ratio is 2.16, its mean its result is better than going to
ratio 1 but it is too low as compared to 2010.
Year 2014 2013 2012 2011 2010
% of Retained Earning 100% 100% 100% 100% 100%
Percentage of earnings retained is to evaluate how effectively a company is producing share value.
Purpose of retained earnings is to invest capital for future growth after paying the dividend. But
universal insurance can’t pay the dividend to the shareholder in last five years and retain fully
profit/loss.
0
0.5
1
1.5
2
2.5
3
3.5
4
2014 2013 2012 2011 2010
Current Ratio
0%
20%
40%
60%
80%
100%
2014 2013 2012 2011 2010
% of Retained Earning

29. Analysis of financial statement
Universal Insurance Page 29
Year 2014 2013 2012 2011 2010
Dividend 0 0 0 0 0
Data was not found.
Conclusion
After analyzing the ratios I judge that the company of universal insurance has poor
performance in last five years because of excess of liabilities over assets and equity. As you
see in “Debt to Equity” ratio the company has 546,902 liabilities and the 77,886 equity. The
company operating profit also in negative due to more expenses and the company can’t
payout the dividend to the share holder and retain fully profit/loss. Due to that reason
investor cannot invest their money in this company.
Recommendations
 The company should manage their assets in every year.
 The company should pay his liabilities timely and when company have less liabilities
instead of equity then the company have opportunity to grow in the market and have
more investor in future. When company retains more investor then company will pay
dividend to the shareholders.
 Company should sale the insurance policies to the customers, due to that reason the
sale of the company will be increased in future instead of extra expenses.