August 20, 2019 (MLN): Jubilee Life Insurance has declared net earnings of Rs. 979.7 million (EPS: Rs. 12.35) for the half year ended June 30, 2019, which is 23.5% lesser than the earnings recorded in same period of last year. The company has also announced an interim cash dividend for the year 2019 at Rs. 3 per share i.e. at 30%.
An official document covering the details of financial results revealed that the company observed almost no change in its contribution revenues. While the non-core income improved by a substantial margin of 84%, the increase in fair value loss on financial assets by a massive magnitude dragged down the net income by almost 10%.
On the brighter side, the company witnessed a 30% slash in its total expenses. However, increase in finance cost by 33% kept the earnings at check.
Profit and loss account for the half year ended June 30, 2019 (millions) | |||
|---|---|---|---|
| June, 2019 | June, 2018 | % Change |
REVENUE |
|
|
|
Premiums / Contributions Revenue | 24,915.35 | 24,871.16 | 0.18% |
Premiums / Contributions ceded to reinsurers | -695.36 | -631.76 | 10.07% |
Net premiums / contributions revenue | 24,219.99 | 24,239.40 | -0.08% |
Fee income | 15.65 | 25.72 | -39.15% |
Investment income | 5,451.27 | 3,206.36 | 70.01% |
Net realized fair value (loss) / gains financial assets | -372.63 | 863.31 | -143.16% |
Net fair value loss on financial assets at fair value through profit or loss | -4,378.05 | -590.42 | 641.51% |
Other income | 140.60 | 76.46 | 83.89% |
Net income | 25,076.83 | 27,820.83 | -9.86% |
Insurance benefits | 11,256.05 | 8,176.65 | 37.66% |
Recoveries from reinsurers | -578.81 | -435.32 | 32.96% |
Claims related expenses | 3.52 | 3.58 | -1.68% |
Net Insurance Benefits | 10,680.76 | 7,744.91 | 37.91% |
Net Change in insurance liabilities (other than outstanding claims) | 6,705.95 | 12,306.34 | -45.51% |
Acquisition expenses | 4,407.49 | 4,498.85 | -2.03% |
Marketing and administration expenses | 1,572.69 | 1,434.17 | 9.66% |
Other expenses | 20.10 | 20.31 | -1.03% |
Total Expenses | 12,706.23 | 18,259.67 | -30.41% |
Realized gain / (loss) on derivative financial instrument | 11.96 | -11.34 | -205.47% |
Unrealized (loss) / gain on derivative financial Instrument | 5.82 | 20.68 | -71.86% |
Finance cost | -71.49 | -53.75 | 33.00% |
Results of operating activities | 1,636.13 | 1,771.84 | -7.66% |
Share of profit of associate | 7.72 | 4.43 | 74.27% |
Profit before tax for the period | 1,643.85 | 1,776.27 | -7.45% |
Income tax expense | -664.10 | -494.54 | 34.29% |
Profit after tax for the period | 979.75 | 1,281.73 | -23.56% |
Earnings (after tax) per share – Rupees | 12.35 | 16.16 | -23.58% |
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