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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