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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