February 10, 2020 (MLN): EFU General Insurance Limited (EFUG) has announced its financial results for the year ended December 31, 2019, as per which the insurance company observed a slight decline in its net profits by 6% YoY to Rs 3.3 billion with earnings per share clocked in at Rs 12.74 per share.
Compared to the previous year, the company earned Rs 3.5 billion as net profits with earnings per share reported at Rs 14 per share.
As per the financial statement issued by the company, the Net Insurance Premium Revenue was Rs. 38.5 billion as against Rs. 30.8 billion in the last year. The Net Insurance Claims rose by 6% YoY to Rs 19.19 billion against Rs 12.3 billion. The overall Claims ratio to Net Premium Revenue was 50% as compared to 40% reported in 2018.
The company’s underwriting results turned negative in 2019 due to cost increase be it net claims, commissions or management expenses.
However, investment income (including rental, profit on deposits and other income) that usually is the rescuer for the bottom-line of an insurance company increased remarkably by 108% to Rs 13 billion against Rs 6.3 billion recorded last year.
Furthermore, in a higher interest rate environment which helped the company and the sector to raise more investment income, the company strived hard to provide a better return to its shareholders. Alongside financial results, the Board of Directors of the company announced a final cash dividend at Rs 5.5 per share i.e. 55%. This is in addition to the aggregate amount of First, Second and Third Interim Dividends of Rs 4.5 per share (i.e. 45%) declared and paid during the year.
Profit and Loss Account for the year ended December 31st 2019 (Rupees in '000) |
|||
---|---|---|---|
|
Dec-19 |
Dec-18 |
% Change |
Net insurance premium |
38542194 |
30869493 |
24.86% |
Net insurance claims |
-19198970 |
-12300512 |
56.08% |
Net commission and other acquisition costs |
-7879291 |
-5949908 |
32.43% |
Insurance claims and acquisition expenses |
-27078261 |
-18250420 |
48.37% |
Management expenses |
-4693780 |
-3986983 |
17.73% |
Net change in insurance liabilities (other than outstanding claims) |
-11046950 |
-1276786 |
765.22% |
Underwriting result |
-4276797 |
7355304 |
|
Investment income |
13166635 |
6322348 |
108.26% |
Net realized fair value losses on financial assets |
-7807925 |
-3518411 |
|
Net fair value gain / (loss) on financial assets at fair value through profit and loss |
3026353 |
-5924034 |
-151.09% |
Rental income |
112349 |
103991 |
8.04% |
Other income |
309526 |
215637 |
43.54% |
Change in fair value of investment property |
433899 |
10681 |
3962.34% |
Other expenses |
-77395 |
-67654 |
14.40% |
|
9163442 |
-2857442 |
-420.69% |
Results of operating activities |
4886645 |
4497862 |
|
Finance cost |
-14090 |
|
|
Share of profit of associate |
|
103952 |
|
Reversal of workers' welfare fund |
273057 |
|
|
Profit from window takaful operations – Operator's Fund |
214143 |
117452 |
82.32% |
Profit before tax |
5359755 |
4719266 |
13.57% |
Income tax expense |
-1990357 |
-1138414 |
74.84% |
Profit after tax |
3369398 |
3580852 |
-5.91% |
Profit attributable to: |
|
|
|
Equity holders of the parent |
2547472 |
2799199 |
-8.99% |
Non-controlling interest |
821926 |
781653 |
5.15% |
|
3369398 |
3580852 |
-5.91% |
Earnings (after tax) per share – Rupees |
12.74 |
14.00 |
-9.00% |
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