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% |
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