Saturday, August 13, 2022
HomeEquityEFUG’s profitability surges by 2.3 times YoY on increased investment income

EFUG’s profitability surges by 2.3 times YoY on increased investment income

August 24, 2020 (MLN): EFU General Insurance Limited (EFUG) has unveiled its financial results for the 1HCY20 ended June 30, 2020, as per which the company has posted its profit after tax of Rs 1.53 billion (EPS: Rs 5.84) i.e. around 2.3 times higher than the net profits of Rs 646 million (EPS: Rs 2.05) of the corresponding period last year.

The financial results announced today were also accompanied by the second interim cash dividend for the six months ended June 30, 2020, at Rs 1.5 per share i.e. 15%.

As per the financial statement issued by the company, the increase in profitability of the company was attributable to an increase in investment income which went up by 32% YoY to Rs 6.82 billion and a net fair gain on financial assets of Rs 2.04 billion.

The company reported a loss in underwriting income of Rs 7.88 billion due to a decline in the company’s net insurance premium by 5.43% YoY along with an increase in net insurance liabilities by 5 times YoY,  despite a decline in insurance claims and acquisition expenses by 10% YoY.

During the period, the rental income jumped by 17.7% YoY to Rs 62 million. On the other hand, other income plunged by 21.5% YoY to stand at Rs 120 million.

Meanwhile, the tax expenses of the company went up by 12% YoY to Rs 900 million.

Profit and Loss Account for the Half-Year ended June 30, 2020 (Rupees in '000)

 

Jun-20

Jun-19

% Change

Net insurance premium

17487834

18491395

-5.43%

Net insurance claims

-8914394

-9635655

-7.49%

Net commission and other acquisition costs

-3179259

-3814275

-16.65%

Insurance claims and acquisition expenses

-12093653

-13449930

-10.08%

Management expenses

-2256936

-2279340

-0.98%

Net change in insurance liabilities (other than outstanding claims)

-11018887

-2171030

407.54%

Underwriting result

-7881642

591095

-1433.40%

Investment income

6823590

5168257

32.03%

Net realized fair value gain/(losses) on financial assets

1222820

-5567340

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

2047474

1019971

Rental income

62812

53351

17.73%

Other income

120830

153915

-21.50%

Other expenses

-71281

-58027

22.84%

 

10206245

770127

1225.27%

Results of operating activities

2324603

1361222

70.77%

Profit from window takaful operations – Operator's Fund

108185

88216

22.64%

Profit before tax

2432788

1449438

67.84%

Income tax expense

-900409

-803005

12.13%

Profit after tax

 1,532,379.00

 646,433.00

137.05%

Profit attributable to:

 

 

 

Equity holders of the parent

1168090

410902

184.27%

Non-controlling interest

364289

235531

54.67%

 

1532379

646433

137.05%

Earnings (after tax) per share – Rupees

5.84

2.05

184.88%

 

Copyright Mettis Link News

Posted on: 2020-08-24T11:03:00+05:00

36498

RELATED ARTICLES
- Advertisment -

Most Popular