Jubilee Life Insurance’s net profits shrink by 8.5% YoY in CY19

MG News | February 11, 2020 at 04:39 PM GMT+05:00

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February 11, 2020 (MLN): Jubilee Life Insurance Limited (JLICL) has announced its financial results for the year ended December 31, 2019, as per which the insurance company witnessed a slight decline in its net profits by around 8.5% YoY to Rs 2.22 billion with EPS clocked in at Rs 28.04.

As per the financial statement issued by the company, investment income (including rental, profit on deposits) that usually is the rescuer for the bottom-line of an insurance company increased remarkably by 73.98% to Rs 12.59 billion.

During the period under review, the net insurance benefits which include recoveries from reinsurers, insurance benefits and claims-related expenses, went up by 37.73% YoY.

The total expenses of the insurance company surged by 47.6% YoY to Rs 42.43 billion mainly due to the increase in net change in insurance liabilities. Moreover, the finance cost went up by 26.80 % to Rs 152 million over the year.

Alongside financial results, the Board of Directors of the company announced a final cash dividend at Rs 13.5 per share i.e. 135%. This is in addition to Interim Dividend already paid at Rs 3 per share i.e. 30%

More notably, in a board meeting, directors have recommended issuing bonus shares in the proportion of 1 share for every 10 shares held i.e. 10%.

Financial Results for the year ended December 2019 (Rupees in million)
	Dec-19	Dec-18	% Change
Premiums/Contributions Revenue	49,627.41	51,887.07	-4.35%
Premiums/Contributions ceded to reinsurers	(1,231.39)	(1,216.10)	1.26%
Net premiums/contributions revenue	48,396.02	50,670.97	-4.49%
Fee income	32.88	41.81	-21.36%
Investment income	12,591.77	7,237.76	73.97%
Net realized fair value gains on financial assets	(1,454.73)	267.07	-
Net fair value loss on financial assets at fair value through profit or loss	8,902.72	(9,744.80)	-191.36%
Other income	297.59	196.68	51.31%
Net income	68,766.25	48,669.49	41.29%
Insurance benefits	23,629.64	17,294.77	36.63%
Recoveries from reinsurers	(1,165.31)	(985.89)	18.20%
Claims related expenses	7.28	6.84	6.43%
Net insurance Benefits	22,471.61	16,315.72	37.73%
Net change in Insurance liabilities (other than outstanding claims)	30,483.40	16,349.03	86.45%
Acquisition expenses	9,060.49	9,795.74	-7.51%
Marketing and administrative expenses	3,159.77	2,776.76	13.79%
Other expenses	27.80	29.67	-6.30%
Total expenses	42,731.46	28,951.20	47.60%
Realized gain / (loss) on derivative financial instrument	43.65	(25.20)	-
Unrealized (loss) /gain on derivative financial instrument	(47.82)	181.80	-
Finance cost	(152.78)	(120.49)	26.80%
Results of operating activities	3,406.23	3,438.68	-0.94%
Share of profit from associates	10.14	9.92	2.22%
Profit before tax for the period	3,416.37	3,448.60	-0.93%
Taxation	(1,192.14)	(1,018.26)	17.08%
Profit after tax for the period	2,224.23	2,430.34	-8.48%
Earnings per share (Rupees)	28.04	30.64	-8.49%

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