October 22, 2020 (MLN): EFU General Insurance Limited (EFUG) has posted its profit after tax of Rs 2.22 billion (EPS: Rs 8.16) for the nine months ended September 30, 2020, showing a robust growth of 78.5% YoY against the net profits of Rs 1.24 billion (EPS: Rs 4.56) of the corresponding period last year.
The financial results announced today were also accompanied by a third interim cash dividend for the nine months ended September 30, 2020, at Rs 1.5 per share i.e. 15% in addition to an aggregate amount of the first and second interim dividend already paid at Rs 3 per share i.e. 30%.
As per the financial statement issued by the company, the increase in profitability of the company was attributable to a twenty-three fold increase in net fair value gain on financial assets to Rs 3.31 billion along with a net realized fair value gain of Rs 3.41 billion in 9MCY20 against the losses of Rs 7.28 billion in 9MCY19
Moreover, the investment income of the insurance company went up by 11% YoY to Rs 9.50 billion.
The company reported a loss in underwriting income of Rs 13.11 billion mainly due to 5 times YoY increase in net change in insurance liabilities along with a 2.67% YoY increase in net insurance claims and acquisition expenses.
During the period, the rental income and other income jumped by 10% YoY to Rs 89 million. On the other hand, other income plunged by 21.4% YoY to stand at Rs 170 million.
Meanwhile, the tax expenses of the company went up by 12% YoY to Rs 1.22 billion.
Consolidated Profit and Loss Account for the Nine Months ended September 30, 2020 (Rupees in '000) |
|||
---|---|---|---|
|
Sep-20 |
Sep-19 |
% Change |
Net insurance premium |
27,535,205 |
27,012,023 |
1.94% |
Net insurance claims |
(15,658,108) |
(14,445,858) |
8.39% |
Net commission and other acquisition costs |
(4,941,168) |
(5,618,428) |
-12.05% |
Insurance claims and acquisition expenses |
(20,599,276) |
(20,064,286) |
2.67% |
Management expenses |
(3,446,669) |
(3,519,371) |
-2.07% |
Net change in insurance liabilities (other than outstanding claims) |
(16,602,496) |
(2,861,894) |
480.12% |
Underwriting result |
(13,113,236) |
566,472 |
– |
Investment income |
9,504,234 |
8,545,413 |
11.22% |
Net realized fair value gain/(losses) on financial assets |
3,418,818 |
(7,286,219) |
– |
Net fair value gain / (loss) on financial assets at fair value through profit and loss |
3,313,867 |
141,658 |
2239.34% |
Rental income |
89,715 |
81,779 |
9.70% |
Other income |
170,725 |
217,241 |
-21.41% |
Other expenses |
(87,428) |
(77,043) |
13.48% |
|
16,409,931 |
1,622,829 |
911.19% |
Results of operating activities |
3,296,695 |
2,189,301 |
50.58% |
Profit from window takaful operations – Operator's Fund |
154,076 |
153,750 |
0.21% |
Profit before tax |
3,450,771 |
2,343,051 |
47.28% |
Income tax expense |
(1,228,364) |
(1,097,805) |
11.89% |
Profit after tax |
2,222,407.00 |
1,245,246.00 |
78.47% |
Profit attributable to: |
|
|
|
Equity holders of the parent |
1632916 |
911567 |
79.13% |
Non-controlling interest |
589491 |
333679 |
76.66% |
|
2222407 |
1245246 |
78.47% |
Earnings (after tax) per share – Rupees |
8.16 |
4.56 |
78.95% |
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