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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