TPL Insurance profits plunge by 88% owing to increased expenses

October 15, 2018 (MLN):  TPL Insurance has witnessed an 88% decline in its overall profits for the nine months ending September 30th, 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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Posted on: 2018-10-15T15:21:00+05:00

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