AICL’s profits surge by 42% in CY21

MG News | February 09, 2022 at 10:58 AM GMT+05:00

0:00

February 9, 2022 (MLN): Adamjee Insurance Company Limited (AICL) has unveiled its financial results for the year ended December 31, 2021, as per which the company has posted its profit after tax of Rs2.94 billion (EPS: Rs8.43) i.e., 42% higher than the net profits of Rs2.08bn (EPS: Rs5.93) of the calendar year 2020, the company's filing on PSX showed on Wednesday.

In conjunction with financial results, the company announced a final cash dividend for the year ended December 31, 2021, at Rs1.50 per share i.e., 15%.

As per the financial statement, investment income that usually is the rescuer for the bottom-line of an insurance company increased by 38% to around Rs6bn, improving the net income of the company.

The underwriting results of the company which includes net insurance premium, insurance claims and acquisition expenses, management and other related expenses, went down by 39% YoY to Rs2.15bn.

During the period under review, the company witnessed Rs869mn net fair loss on financial assets that also affected the bottom line which has been somewhat offset by fair value adjustment to investment property that stood at Rs674mn in CY21.

The positive highlight includes Rs83mn rental income while the other income of the company inched down by 6% to Rs523mn.

Meanwhile, the financial cost of the company has soared by 2.7x during the review period to Rs53bn, affecting the financial health of the company. An increase in the policy rate by the central bank might be one of the reasons behind this increase in financial costs.

Notably, the primary culprit is increased tax expenses that restricted the bottom line. During CY21, tax expenses surged by 8.6times YoY, clocking in at Rs1.34bn.

Consolidated Profit and Loss account for the year ended December 31st, 2021 ('000 Rupees)
	Dec-21	Dec-20	% Change
Net insurance premium	32,651,255	29,808,605	9.54%
Net insurance claims	(16,309,641)	(14,825,487)	10.01%
Net commission and other acquisition cost	(4,661,204)	(4,525,262)	3.00%
Insurance claims and acquisition expenses	(20,970,845)	(19,350,749)	8.37%
Management expenses	(4,344,697)	(4,051,227)	7.24%
Net change in insurance liabilities (other than outstanding claims)	(9,490,171)	(9,937,066)	-4.50%
Underwriting result	(2,154,458)	(3,530,437)	-38.97%
Investment income	5,995,959	4,339,163	38.18%
Net fair value (loss)/gain on financial assets at fair value through profit or loss	(869,463)	738,783	-
Rental income	83,620	69,812	19.78%
Other income	523,130	559,041	-6.42%
Fair value adjustment to investment property	674,140	(21,000)	-
Other expenses	(68,447)	(68,689)	-0.35%
Results of operating activities	4,184,481	2,086,673	100.53%
Finance cost	(53,887)	(19,881)	171.05%
Profit from Window Takaful Operations-operator's fund (parent company)	139,267	163,774	-14.96%
Profit before tax	4,269,861	2,230,566	91.43%
Income tax expense	(1,326,268)	(153,858)	762.01%
Profit after tax	2,943,593	2,076,708	41.74%
Basic and diluted earnings per share - Rupees	8.43	5.93	42.16%

Copyright Mettis Link News

Related News

Name	Price/Vol	%Chg/NChg
KSE100	158,313.45 348.26M	2.82% 4347.08
ALLSHR	94,665.78 608.29M	2.55% 2350.15
KSE30	48,079.56 150.27M	2.96% 1383.03
KMI30	229,679.86 136.21M	3.32% 7386.98
KMIALLSHR	61,793.47 317.51M	2.97% 1784.00
BKTi	43,251.31 41.61M	3.03% 1273.29
OGTi	33,013.13 14.41M	2.67% 858.90

Symbol	Bid/Ask	High/Low

Name	Last	High/Low	Chg/%Chg
BITCOIN FUTURES	70,890.00	72,095.00 70,175.00	1535.00 2.21%
BRENT CRUDE	102.00	102.20 97.15	-2.49 -2.38%
RICHARDS BAY COAL MONTHLY	99.40	0.00 0.00	-10.10 -9.22%
ROTTERDAM COAL MONTHLY	118.45	118.45 118.45	0.30 0.25%
USD RBD PALM OLEIN	1,175.00	1,175.00 1,175.00	0.00 0.00%
CRUDE OIL - WTI	90.30	90.95 86.46	-2.05 -2.22%
SUGAR #11 WORLD	15.53	15.83 15.32	-0.35 -2.20%