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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