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HomeEquityEFUG’s net earnings swell by 78.5% YoY during 9MCY20

EFUG’s net earnings swell by 78.5% YoY during 9MCY20

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%

Copyright Mettis Link News

Posted on: 2020-10-22T14:10:00+05:00

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