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HomeEquityJubilee Life Insurance observes 23.5% slash in net earnings

Jubilee Life Insurance observes 23.5% slash in net earnings

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%

 

Copyright Mettis Link News

Posted on: 2019-08-20T16:04:00+05:00

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