August 19, 2020 (MLN): Jubilee Life Insurance Company Limited (JLICL) has disclosed its financial performance for the half year ended on June 30, 2020 as per which company’s net profits jumped by 44% from Rs 979.75 million to Rs 1.4 billion.
This reflected in company’s earnings per share which also grew by the same percentage from Rs 11.23 per share to Rs 16.16 per share.
Alongside financial results, the company also announced an interim cash dividend for the year 2020 at Rs 3 per share i.e. 30%.
According to the notification issued to PSX, the net income for the company declined by 28.59% to Rs 17.9 million following a reduction in net premium/contribution revenue by 18.55%, and a significant rise in Net loss on financial assets from Rs 4.3 billion to Rs 13.45 billion.
The net insurance benefits of the company displayed a slight improvement during the period as it grew by 7.8%, primarily due to increase in insurance benefits by 7.5%.
During the period, the company witnessed a notable decline in its total expenses by 66.8% which led the overall increase in the company’s operating profits by 21.8%.
The decrease in tax expenses by 10.5%, however, brought further improvement in company’s net profits for the said period.
|
Financial Results for the half year ended Jun 30, 2020 (Rupees in million) |
|||
|---|---|---|---|
|
|
Jun-20 |
Jun-19 |
% Change |
|
REVENUE |
|
|
|
|
Premiums/Contributions Revenue |
20,375.84 |
24,915.35 |
-18.22% |
|
Premiums/Contributions ceded to reinsurers |
(649.73) |
(695.36) |
-6.56% |
|
Net premiums/contributions revenue |
19,726.11 |
24,219.99 |
-18.55% |
|
Fee income |
16.04 |
15.65 |
2.49% |
|
Investment income |
6,589.52 |
5,451.27 |
20.88% |
|
Net realised fair value gains on financial assets |
4,866.61 |
(372.63) |
|
|
Net fair value loss on financial assets at fair value through profit or loss |
(13,451.65) |
(4,378.05) |
207.25% |
|
Other income |
159.97 |
140.60 |
13.78% |
|
Net income |
17,906.60 |
25,076.83 |
-28.59% |
|
Insurance benefits |
12,100.45 |
11,256.05 |
7.50% |
|
Recoveries from reinsurers |
(588.44) |
(578.81) |
1.66% |
|
Claims related expenses |
1.69 |
3.52 |
-51.99% |
|
Net insurance Benefits |
11,513.70 |
10,680.76 |
7.80% |
|
Net change in Insurance liabilities (other than outstanding claims) |
(587.26) |
6,705.95 |
-108.76% |
|
Acquisition expenses |
2,875.29 |
4,407.07 |
-34.76% |
|
Marketing and administrative expenses |
1,891.08 |
1,548.29 |
22.14% |
|
Other expenses |
30.40 |
20.10 |
51.24% |
|
Total expenses |
4,209.51 |
12,681.41 |
-66.81% |
|
Realized gain / (loss) on derivative financial instrument |
34.86 |
11.96 |
191.47% |
|
Unrealized (loss) /gain on derivative financial instrument |
(120.97) |
5.82 |
|
|
Finance cost |
(104.40) |
(96.31) |
8.40% |
|
Results of operating activities |
1,992.88 |
1,636.13 |
21.80% |
|
Share of profit from associates |
11.85 |
7.72 |
53.50% |
|
Profit before tax for the period |
2,004.73 |
1,643.85 |
21.95% |
|
Taxation |
(594.40) |
(664.10) |
-10.50% |
|
Profit after tax for the period |
1,410.33 |
979.75 |
43.95% |
|
Earnings (after tax) per share (Rupees) |
16.16 |
11.23 |
43.90% |
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