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AICL’s profitability rises remarkably by 57% YoY

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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Posted on: 2020-03-13T17:26:00+05:00

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