Jubilee Life Insurance profits dragged down with increased expenses

October 25, 2018 (MLN): Jubilee Life Insurance (JLICL) profits for the nine months period ended 30th September 2018 have fallen by 13.86%, due to almost equivalent increase in Net income and Total expenses of the company.

According to the notification issued to PSX, the net income for the company increased by 36.36% following a good progress in net premium/contribution revenue by 14.23%, and a drop in Net loss on financial assets by 62.48%.

The net insurance benefits of the company also displayed improvement over the year as it grew by 18.5%, primarily due to increase in insurance benefits by 16.8%

However, total expenses of the company grew by 61.01% i.e. Rs. 9.4 million, which is almost equal to the increase in company’s income and benefits, leading to an overall decrease in the company’s operating profits by 18.66%.

The decrease in income taxes by 26.02%, however, brought down the damage on the net profits to only 13.86% for the said period.

The Earnings per share of the company were stated at Rs. 25.36 for the nine months period ended 30th September 2018, 13.86% down by previous year.

Profit and loss account for the nine months ended September 30th 2018 (Rupees'million)

 

Sep-18

Sep-17

% Change

REVENUE

   

Premiums / Contributions Revenue

37,009.04

32,468.37

13.98%

Premiums / Contributions ceded to reinsurers

-982.55

-929.94

5.66%

Net premiums / contributions revenue

36,026.49

31,538.43

14.23%

Fee income

34.69

34.23

1.34%

Investment income

5,239.80

4,057.93

29.12%

Net realized fair value gains on financial assets

655.42

-84

 

Net fair value loss on financial assets at fair value through profit or loss

-2,489.06

-6,633.59

-62.48%

Other income

118.44

117.85

0.50%

Net income

39,585.78

29,031.04

36.36%

    

Insurance benefits

12,262.18

10,498.82

16.80%

Recoveries from reinsurers

-683.22

-727.21

-6.05%

Claims related expenses

5.17

3.71

39.35%

Net Insurance Benefits

11,584.13

9,775.32

18.50%

    

Net Change in Insurance Liabilities (other than outstanding claims)

16,105.51

7,701.74

109.12%

Acquisition expenses

6,832.82

5,928.14

15.26%

Marketing and administration expenses

2,045.29

1,883.73

8.58%

Other expenses

27.61

20.28

36.14%

Total Expenses

25,011.23

15,533.89

61.01%

    

Realized loss on derivative financial instrument

-19.02

-8.54

122.72%

Unrealized gain / (loss) on derivative financial instrument

57.68

-4.74

 

Share of profit from associates

6.42

6.01

6.82%

Profit before tax for the period

3,035.50

3,714.56

-18.28%

Taxation

-999.55

-1,351.14

-26.02%

Profit after tax for the period

2,035.95

2,363.42

-13.86%

Earnings (after tax) per share – Rupees

25.66

29.79

-13.86%

Copyright Mettis Link News

Posted on: 2018-10-25T15:58:00+05:00

23872