EFUG’s net profits up by 28% YoY owing to increased underwriting income

April 27, 2020 (MLN): EFU General Insurance (EFUG) has unveiled its financial results for the 1st quarter ended March 31, 2020, as per which the company has posted its profit after tax of Rs 744 million (EPS: Rs 2.31) i.e. 28% higher than the net profits of Rs 581 million (EPS: Rs 2.30) of the corresponding period last year.

Alongside financial results, the Board of Directors of the company announced a first interim cash dividend for the 1QCY20 at Rs 1.5 per share i.e. 15%.

As per the financial statement issued by the company, the core business of the company grew as underwriting income witnessed a substantial increase of 57% YoY.

The net premiums growth remained flat owing to economic implications amid COVID-19 while EFUG reported a 4.77% YoY increase in Insurance Claims and Acquisition Expenses and a 9.6% YoY increase in Management Expenses.

During the period, the profitability of the company was also attributable to increased investment income which went up by 24% YoY on the back of gains on investment in Fixed income instruments.

Meanwhile, the tax expenses of the company went up by 2.5 times YoY during the period.

Profit and Loss Account for the 1st Quarter ended March 31st, 2020 (Rupees in '000)

 

Mar-20

Mar-19

% Change

Net insurance premium

9175749

9069522

1.17%

Net insurance claims

-5420361

-5041008

7.53%

Net commission and other acquisition costs

-1760116

-1812577

-2.89%

Insurance claims and acquisition expenses

-7180477

-6853585

4.77%

Management expenses

-1168715

-1066120

9.62%

Net change in insurance liabilities (other than outstanding claims)

-2265240

-2064910

9.70%

Underwriting result

-1438683

-915093

57.22%

Investment income

3017055

2433709

23.97%

Net realized fair value losses on financial assets

96938

-2689962

 Net fair value gain / (loss) on financial assets at fair value through profit and loss

-492264

1858465

Rental income

32266

29443

9.59%

Other income

67757

64261

5.44%

Other expenses

-44200

-28150

57.02%

 

2677552

1667766

60.55%

Results of operating activities

1238869

752673

64.60%

Profit from window takaful operations – Operator's Fund

58827

53145

10.69%

Profit before tax

1297696

805818

61.04%

Income tax expense

-552999

-224227

146.62%

Profit after tax

744697

581591

28.04%

Profit attributable to:

 

 

 

Equity holders of the parent

463702

460905

0.61%

Non-controlling interest

281995

120686

133.66%

 

745697

581591

28.22%

Earnings (after tax) per share – Rupees

2.31

2.30

0.43%

 

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Posted on: 2020-04-27T11:32:00+05:00

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