AICL's profitability rises remarkably by 57% YoY

MG News | March 13, 2020 at 05:26 PM GMT+05:00

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March 13, 2020 (MLN): Despite slowdown in economic growth, Adamjee Insurance Company Limited (AICL) has reported a whopping 56.75% increase in net profits to Rs 2 billion in CY19 against Rs 1.29 billion realized in the previous year.

Over the year, the company observed a loss of Rs 2.5 billion in underwriting results due to rise in net insurance claims and its acquisition expenses by 12.92% and 14.83% respectively.

On the other hand, the company witnessed an upsurge in investment income rental income and other income by 25.3%, 221% and 103% respectively. Additionally, the company reported a gain of Rs435.39 million against the loss of Rs 1.85 billion reported last year. Consequently, profits before tax mounted by 25.29%YoY.

Furthermore, decline in tax expenses by 17.5% provided a boost to AICL’s profitability.

Overall, the impressive results yielded earnings per share of Rs 5.63 per share, exhibiting an increase of around 54% YoY.

Alongside financial results, the company also announced a final cash dividend of Rs 1.50 per share i.e. 15% for the year mentioned above. This is in addition to the Interim Dividend already paid at Rs 1 per share i.e. 10%.

Consolidated Profit and Loss account for the year ended December 31st 2019 ('000 Rupees)
	Dec-19	Dec-18	% Change
Net insurance premium	27,800,508	26,517,035	4.84%
Net insurance claims	(16,600,419)	(14,701,338)	12.92%
Net commission and other acquisition cost	(4,207,683)	(3,419,564)	23.05%
Insurance claims and acquisition expenses	(20,808,102)	(18,120,902)	14.83%
Management expenses	(4,422,568)	(4,134,615)	6.96%
Net change in insurance liabilities	(5,125,588)	(3,703,340)	38.40%
Underwriting result	(2,555,750)	558,178	-557.87%
Investment income	4,031,643	3,215,720	25.37%
Net fair value loss on financial assets at fair value through profit or loss	435,397	(1,850,952)	-123.52%
Fair Value adjustment to investment property	33,298	125,900	-73.55%
Rental income	28,604	8,906	221.18%
Other income	460,351	226,606	103.15%
Other expenses	(67,448)	(76,435)	-11.76%
Worker's Welfare fund reversal, Charge	355,761	(40,809)	-971.77%
Results of operating activities	2,721,856	2,167,114	25.60%
Finance cost under IFRS-16	(15,374)	-
Profit/(loss) from Window Takaful Operations	107,693	78,949	36.41%
Profit before tax	2,814,175	2,246,063	25.29%
Income tax expense	(784,094)	(950,975)	-17.55%
Profit after tax	2,030,081	1,295,088	56.75%
Basic and diluted earnings per share - Rupees	5.63	3.66	53.83%

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