IGI Life Insurance bears 70% reduction in half yearly profits, at the hands of lower net revenue

MG News | August 28, 2018 at 03:39 PM GMT+05:00

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IGI Life insurance reported a 70% drop in half yearly profits due to reduced Net premium/contribution revenue.

In a Board of Directors meeting conducted on August 28, 2018, IGI reviewed its financial earnings for the half year period, ended on June 30^th 2018.

As compared to the half year ended on June 30^th 2018, IGI’s net premium/contribution revenue dropped by 9.5%, leading to 11.5% reduction in net income.

Furthermore, net insurance benefits increased by 13%.

Collectively, these components caused the overall half yearly profits to drop from Rs.143.6 million to Rs.42.9 million, on year-on-year basis.

Additionally, earnings per share are reported to be Rs.0.61 per share from Rs.2.03 per share

Profit and Loss account for the half year ended June 30th 2018 ('000 Rupees)
	Jun-18	Jun-17	% change
Premium/contribution revenue	2,686,768	2,955,604	-9.10%
Premium ceded to reinsurers/retakaful	66,843	61,153	9.30%
Net premium/contribution revenue	2,619,925	2,894,451	-9.48%
Investment income	504,088	553,288	-8.89%
Net realized fair value gains on financial assets	40,169	133,717	-69.96%
Other income - net	39,039	38,249	2.07%
Net income	3,203,221	3,619,705	-11.51%
Insurance benefits	2,608,938	2,331,142	11.92%
Recoveries from reinsurers	(10,986)	(48,243)	-77.23%
Net insurance benefits	2,597,952	2,282,899	13.80%
Change in Insurance Liabilities (other than outstanding claims)	(146,868)	532,174
Acquisition expenses	358,218	367,340	-2.48%
Marketing and administration expenses	335,838	268,515	25.07%
Other expenses	15,133	7,271	108.13%
Total expenses	562,321	1,175,300	-52.16%
Finance costs	-	-
Profit/(loss) before tax	42,948	161,506	-73.41%
Tax	-	17,919
Profit/(loss) after tax	42,948	143,587	-70.09%
Earnings per share - basic and diluted (Rupees)	0.61	2.03	-69.95%

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