EFU Life Insurance Half Year Profits suffer a 27.7% decline

EFU Life Insurance’s profits for the six months ended June 30, 2018 have fallen by 27.69% as the company reported total profits of Rs 598.127 million compared to profits worth Rs 827.225 million reported a year ago.

Although the company’s premium/contribution revenue increased by 8.67% over this time frame, due to a 22.73% increase in the premium/contribution ceded to reinsurers, the net premium earned by the company fell by 6.54%.

Compared to the net realized fair value of the gains on financial assets worth Rs 2,579.928 million last year, the company incurred losses on financial assets this year, the net realized fair value of which amounted to Rs 717.659 million.

The company however witnessed a close to 90% decline in the net fair value of the losses on financial assets accounted for at fair value through its profit and loss account.

Net income of the company fell by 11.88% while insurance benefits also decreased by 13.37%.

On a whole, expenses of the firm, primarily acquisition expenses, marketing and administration expenses, and other expenses all witnessed an increase this year.

As a result, the company’s profits after taxation fell down by 27.69%.

The company declared earnings per share at Rs 5.98 compared to Rs 8.27 declared a year ago on June 30, 2017.

The company also declared its second Interim Cash Dividend for the year 2018 at Rs. 1.25 per share (i.e. 12.5%), in addition to the Interim Cash Dividend of Rs 1.25 per share already declared and paid in the year 2018.