TPL Insurance profits plunge by 88% owing to increased expenses

By MG News | October 15, 2018 at 03:21 PM GMT+05:00

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October 15, 2018 (MLN): TPL Insurance has witnessed an 88% decline in its overall profits for the nine months ending September 30^th, 2018.

According to the report on financial earnings issued to PSX, TPL Insurance witnessed a minor drop of 4% in net insurance premium, which along with enhanced net commission expenses, weighed down the underwriting results by 11% as compared to the corresponding period of last year.

The increase in other expenses by Rs. 54 million cancelled out the impact of the increase in Investment income by Rs. 12 million and other income by Rs. 40 million, negating any positive affect on the profitability of the company.

Although finance charges grew by a considerable 232%, they left little impact on the ultimate result because of the low base effect.

Furthermore, reduction in Income tax expense by Rs 38 million (72.15%) failed to upsurge the profits of the company for this year.

The earning per share of the company witnessed an overall decline of 88.1%.

Other than this, the board of TPL Insurance has recommended an interim cash dividend at Rs.2 per share, i.e. 20%.

Financial Results for the nine months ended on September 30th 2018 (Rupees)
	Sep-18	Sep-17	% Change
Net insurance premium	957,552,152	997,301,069	-3.99%
Net insurance claims	(399,399,572)	(422,322,501)	-5.43%
Net commission expense	(98,411,896)	(86,421,853)	13.87%
Insurance claims and commission expenses	(497,811,468)	(508,744,354)	-2.15%
Management expenses	(338,544,996)	(351,901,913)	-3.80%
Underwriting result	121,195,688	136,654,802	-11.31%
Investment income	26,126,205	14,092,167	85.40%
Other income	158,220,518	117,436,450	34.73%
Other expenses	(208,063,151)	(153,824,198)	35.26%
Results of operating activities	97,479,260	114,359,221	-14.76%
Financial charges	(943,661)	(284,155)	232.09%
Profit before tax from General Insurance Options	96,535,599	114,075,066	-15.38%
Profit/(loss) before tax from Window Takaful Operations	(67,963,007)	57,546,259
Profit before tax for the period	28,572,592	171,621,325	-83.35%
Income tax expense	(14,917,822)	(53,568,239)	-72.15%
Profit after tax	13,654,770	118,053,086	-88.43%
Earning (after tax) per share	0.15	1.26	-88.10%

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