Jubilee Life Insurance profits dragged down with increased expenses

By MG News | October 25, 2018 at 03:58 PM GMT+05:00

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October 25, 2018 (MLN): Jubilee Life Insurance (JLICL) profits for the nine months period ended 30^th 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 30^th 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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