2nd quarter report 2019 - spi insurance company limited · 2019-09-19 · content spi insurance...

Content

SPI Insurance Company Limited

Half Year Report 2019

More information online:www.spiinsurance.com.pk

Corporate Information 02

Key Management Personnel 03

Banks 04

Directors’ Review Report to the Members (English) 05

Directors’ Review Report to the Members (Urdu) 06

Condensed Interim Statement of Financial Position

Independent Auditors’ Review Report

Independent Auditors’ Review Report

Condensed Interim Statement of Profit or Loss

Condensed Interim Statement of Comprehensive Income

Condensed Interim Statement of Changes in Equity

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FINANCIAL STATEMENTS (Conventional)

FINANCIAL STATEMENTS (Window Takaful Operations)

Condensed Interim Statement of Financial Position

Condensed Interim Statement of Profit or Loss

Condensed Interim Statement of Comprehensive Income

Condensed Interim Statement of Cash Flows

Condensed Interim Statement of Changes in Funds

Notes To The Condensed Interim Financial Statements

Notes To The Condensed Interim Financial Statements

Condensed Interim Statement of Cash Flows

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Corporate Information

ChairmanMr. Aziz Ullah Memon

Managing Director & Chief ExecutiveMian M. A. Shahid

DirectorsMr. M. AsgharMr. Abdul MajeedMr. Uzman Naveed ChaudharyMr. M. Saleem SheikhMr. Khurram Khan

Underwriting CommitteeMian M. A. Shahid (Chairman)Mr. Abdul Majeed (Member)Mr. Imtiaz Ali (Secretary)

Claim Settlement Committee:Mr. Uzman Naveed Chaudhry (Chairman)Mian M. A. Shahid (Member)Mr. Naeem Tariq (Member/Secretary)

Reinsurance & Co-insurance Committee:Mian M. A. Shahid (Chairman)Mr. Abdul Majeed (Member)Mr. Faisal Akbar (Member/Secretary)

Ethics, Human Resource & Remuneration Committee:Mr. M. Saleem Sheikh (Chairman)Mian M. A. Shahid (Member)Mr. M. Asghar (Member)Mr. Shahid Malik (Secretary)

Chief Financial OfficerMr. Naeem Tariq

Company Secretary Mr. Noshad Ahmed

Chief Internal AuditorMian Mohsin Aslam

Nominations CommitteeMr. Aziz Ullah Memon (Chairman)Mian M. A. Shahid (Member)Mr. Abdul Majeed (Member)Mr. Noshad Ahmed (Secretary)

Investment CommitteeMian M. A. Shahid (Chairman)

Mr. Aziz Ullah Memon (Member)Mr. Naeem Tariq (Member/ Secretary)

Mr. M. Saleem Sheikh (Member)

Audit CommitteeMr. M. Asghar (Chairman)Mr. M. Saleem Sheikh (Member)

Mian Mohsin Aslam (Secretary)Mr. Khurram Khan (Member)

AuditorsM/s RSM Avais Hyder Liaquat NaumanChartered Accountants

Tax ConsultantM/s M. Bilal & CompanyChartered Accountants

Legal AdvisorsM/s Kilam LawM/s Mandviwala & Zafar

Registered OfficeSuite # 204-A, Second Floor,Madina City Mall, Abdullah Haroon Road,Karachi.Phone # (021) 35221805Fax # (021) 35221806

Head OfficeUIG House,6 - D, Upper Mall, Lahore.Phone # (042) 35776561-62-67-68, 35756563Fax # (042) 35776560E-mail: [email protected]: www.spiinsurance.com.pk

Board of Directors

Committees

Risk Management & Compliance Committee:Mr. Uzman Naveed Chaudhry (Chairman)Mr. Aziz Ullah Memon (Member)Mr. Naeem Tariq (Member)

Mr. Faisal Akbar (Secretary)Mr. M. Asghar (Member)

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Key Management Personnel

Deputy Managing DirectorMr. Shaheryar Akbar Raja

AdvisorMaj. Gen. (R) Asif Duraiz Akhter

General Manager Re-InsuranceMr. Faisal Akbar (FCA)

General Manager Health BusinessMr. Nasir Abbas Khan

Chief Manager UnderwritingMr. Imtiaz Ali

Chief Manager Claims / MotorMr. Khalid Nazeer Bajwa

Chief Manager Accounts

Mr. Saleem Akhter (FCMA)

Manager Claims / Non MotorMr. Naveed ul Haq Nomani

Assistant General Manager I.TMr. Saquib Obaid ur Rehman

Assistant General Manager AdministrationMr. Shahid Malik

Manager TravelMr. Iqbal Hashmi

Shariah AdvisorMufti Muhammad Umar Ashraf

Head of WTOMr. Faisal Rashid

Head of UnderwritingMr. Muzammil Bashir (ACII)

Manager AccountsMr. Ali Saeed

Managing Director & Chief Executive OfficerMian M. A. Shahid

Conventional Business

Window Takaful Operations

Syed Waqar AzeemChief Operating Officer


Half Year Report 2019

Al-Baraka Bank (Pakistan) Limited

Allied Bank Limited

Apna Microfinance Bank Limited

Bank Al-Falah Limited

Bank Al-Habib Limited

Bank Islami Pakistan Limited

Dubai Islamic Bank Pakistan Limited

Faysal Bank Limited

Finca Microfinance Bank Limted

Habib Bank Limited

JS Bank Limited

Karakoram Co-operative Bank Limited

Meezan Bank Limited

National Bank of Pakistan

MCB Bank Limited

SILKBANK Limited

Sindh Bank Limited

Soneri Bank Limited

State Bank of Pakistan

Tameer Microfinance Bank Limited

The Bank Of Punjab

United Bank Limited

Zarai Taraqiati Bank Limited

Banks

DIRECTORS’ REVIEW REPORT TO THE MEMBERS

(Rupees in thousand)June 30, 2019 June 30, 2018


5Half Year Report 2019

Dear Follow Members!

On behalf of the Board of Directors, I am pleased to present the half yearly review report of the SPI Insurance Company Limited together with the un-audited Financial Statements along with Window Takaful Operations for the half year ending June 30, 2019.

Financial Highlights

Overall-performance of the company during the first half of 2019 has shown stability against the current market situation on the conventional insurance business side, the premium written stood at Rs. 353.606 million as on June 30, 2019 as compared to Rs. 298.917 million on June 30, 2018 showing an increase of 18.30% while the net premium registered at Rs. 253.732 million as against Rs. 250.653 million in the preceding year showing an increase of 1.23%. The underwriting profit registered at Rs.16.871 million as against Rs.26.531 million for the corresponding period of last year. The net claims stood at Rs. 62.425 million as against Rs. 75.098 million for the same period ending June 30, 2018 showing a decrease of 16.88%. Net commission expenses posted at Rs. 38.671 million as against Rs. 35.191 million in last year. The management and other expenses increased by 18.09% as compared to last year. The investment and other income for the half year 2019 was Rs. 9.564 million as against Rs. 8.690 million in the year 2018. Accordingly, profit before tax posted at Rs. 18.312 million as compared to profit of Rs. 17.988 million earned by Company for the same period last year as a result the earning per share remained Rs. 0.22 as compared to Rs. 0.26 in the year 2018.

The written contribution under Window Takaful Operations for the period ended June 30, 2019 was Rs. 116.448 million as against Rs. 114.314 million in the preceding year while net contribution revenue was Rs. 27.583 million as compared to Rs. 25.560 million in last year. Wakala fee registered an increase of 1.87% to Rs. 46.579 million as on June 30, 2019 as against Rs. 45.726 million in the preceding year. The net claims expenses Rs. 16.510 million as on June 30, 2019 as against Rs. 18.598 million on June 30, 2018. Net commission expenses posted at Rs. 23.475 million as against Rs. 29.496 million in last year in operators fund. The management and other expenses decreased by 0.28% as compared to last year. Underwriting results registered at Rs. 0.95 million loss as against Rs. 12.515 million profit for the corresponding period of last year. Deficit arising from operators' fund is Rs. 3.937 million as against Rs. 12.819 million in the year 2018. Loss arising from the Participants Takaful fund was Rs. 0.804 million as against Rs. 12.621 million profits in the year 2018. Significant increase is shown in operating results during the half year ended June 30, 2019.

Conventional Insurance: Premium written 353,606 298,917 Net Premium revenue 253,732 250,653 Net Claims 62,425 75,098 Investment and other Income 9,564 8,960 Net Commission 38,671 35,191 Management & other expenses 139,952 118,517 Underwriting Result 16,871 26,531 Profit / (Loss) before tax 18,312 17,988

Window Takaful Operations:Contribution written 116,448 114,314 Net Contribution revenue 27,583 25,560 Wakala fee 46,579 45,726 Net Claims 16,510 18,598 Net Commission 23,475 29,495 Management & other expenses 29,770 29,854 Underwriting result in PTF (950) 12,515 (Deficit) /Surplus in PTF (804) 12,621 (Deficit) /Surplus in OPF (3,937) (12,819)

Consolidated ResultsProfit before tax 18,312 17,988 Profit after tax 10,846 12,806 E.P. S. 0.22 0.26

Credit RatingThe Company is rated single “A” with (stable outlook) by Pakistan Credit Rating Agency Limited (PACRA).

ISO 9001:2015 CertificationDue to overall performance during the year 2018 ISOQAR Limited has approved ISO 9001:2015 in compliance with their requirement and has issued the said certificate of registration.

Future OutlookThe first half of the year 2019 has shown an overall progress, yet the need is to accelerate the efforts to attain the desired results.

Appreciation and AcknowledgmentI would like to express my sincere gratitude to The Securities and Exchange Commission of Pakistan, State Bank of Pakistan, our Reinsurers and Bankers for their continued guidance and assistance. I would also like to take this opportunity to extend our thanks to valued customers and the shareholders for reposing their confidence. We also appreciate the efforts of the management and employees for their hard work and dedication towards the growth of the Company.

For and on behalf of the Board of Directors

Mian M. A. ShahidDirector & Chief ExecutiveLahore: August 29, 2019

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INDEPENDENT AUDITORS' REVIEW REPORT

To the Members of SPI Insurance Company Limited Report on review of Condensed Interim Financial Statements

Introduction

We have reviewed the accompanying condensed interim statement of financial position of SPI Insurance Company Limited as at June 30, 2019 and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, condensed interim statement of cash flows and notes to the condensed interim financial statements for the six-months period then ended (here-in-after referred to as the “interim financial statements”). Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Other Matter Paragraph

The figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the three-months period ended June 30, 2019 and 2018 have not been reviewed, as we are required to review only the cumulative figures for the six-months period ended June 30, 2019.

The engagement partner on the review resulting in this independent auditors' review report is Mr. Inam ul Haque.

RSM AVAIS HYDER LIAQUAT NAUMAN CHARTERED ACCOUNTANTSPlace: LahoreDate: August 29, 2019

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as at June 30, 2019

Assets

Property and equipment

Intangible assets

Investments

In equity securities

In government securities

In term deposits

Total assets in Window Takaful - Operator's Fund

Loans and other receivables

Insurance / Reinsurance receivables

Reinsurance recoveries against outstanding claims

Deferred commission expense

Deferred taxation

Prepayments

Cash and bank balances

Total Assets

Equity and Liabilities

Capital and reserves

Ordinary share capital

Fair value reserve

Un-appropriated profit

Total Equity

Liabilities

Underwriting Provisions

Outstanding claims (including IBNR)

Unearned premium reserves

Unearned reinsurance commission

Retirement benefit obligations

Borrowings

Insurance / Reinsurance payables

Other creditors and accruals

Total liabilities in Window Takaful - Operator’s Fund

Provision for taxation - Income tax

Total Liabilities

Total Equity and Liabilities

Contingencies and Commitments

100,556,547

216,134

84,793,482

117,183,756

19,430,000

144,237,902

175,059,284

389,546,949

101,210,434

34,111,698

15,627,785

66,276,069

91,517,686

1,339,767,726

500,000,000

34,242,757

53,254,722

587,497,479

218,895,131

249,499,712

10,337,356

10,304,906

16,328,349

83,452,977

46,416,055

84,291,522

32,744,239

752,270,247

1,339,767,726

108,654,770

240,149

50,168,070

164,214,431

21,230,000

139,466,793

171,307,298

343,798,505

80,064,202

28,800,679

19,030,894

69,367,806

27,489,053

1,223,832,650

500,000,000

(382,655)

42,841,213

542,458,558

190,054,492

220,918,911

10,545,652

10,364,906

21,558,133

80,171,587

42,428,793

75,150,207

30,181,411

681,374,092

1,223,832,650

The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)

June 30,2019

(Un-audited)Rupees

Note

December 31, 2018

(Audited)Rupees


Chief Executive Officer DirectorDirectorChairman

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)for the six-months period ended June 30, 2019


2019 2018 2019 2018

Rupees Rupees Rupees Rupees

Net insurance premium 9 134,061,926

128,035,479

253,732,777

250,652,578

Net insurance claims 7 (28,289,446)

(35,866,161)

(62,424,945)

(75,098,510)

Net commission expenses 8 (23,853,712)

(19,715,505)

(38,671,153)

(35,190,634)

Insurance claim expenses (52,143,158)

(55,581,666)

(101,096,098)

(110,289,144)

Management expenses (71,054,031)

(50,592,244)

(135,765,510)

(113,832,748)

Underwriting results 10,864,737

21,861,569

16,871,169

26,530,686

Investment income 11 3,951,662 4,001,732 8,288,688 8,087,821

Other income 1,142,857 (33,670) 1,275,932 872,493

Other expenses (1,439,786)

(1,922,292)

(3,065,273)

(4,221,746)

Result of operating activities 14,519,470

23,907,339

23,370,516

31,269,254

Finance costs (872,235)

(239,792)

(1,120,876)

(462,168)

Profit / (loss) from Window Takaful Operator's Fund 1,111,204

(12,983,602)

(3,937,401)

(12,818,701)

Profit before tax 14,758,439

10,683,945

18,312,239

17,988,385

Provision for taxation (6,447,807)

(3,477,198)

(7,465,925)

(5,182,361)

Profit for the period 8,310,632 7,206,747 10,846,314 12,806,024

Earnings per share - basic and diluted 0.17 0.14 0.22 0.26


Note

Three-months period endedJune 30,

Six-months period endedJune 30,

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CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)for the six-months period ended June 30, 2019





CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)for the six-months period ended June 30, 2019


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CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)for the six-months period ended June 30, 2019




NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)for the six-months period ended June 30, 2019

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16



183,101,669 130,396,841 590,080,264163,133,325

163,133,325

605,449,560

130,396,841183,101,669



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(113,872,748)

(234,844,467)

234,530,686


August 29, 2019



INDEPENDENT AUDITORS' REVIEW REPORT

To the Members of SPI Insurance Company Limited – Window Takaful Operations Report on review of Condensed Interim Financial Statements

Introduction

We have reviewed the accompanying condensed interim statement of financial position of SPI Insurance Company Limited – Window Takaful Operations as at June 30, 2019 and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in funds, condensed interim statement of cash flows and notes to the condensed interim financial statements for the six-months period then ended (here-in-after referred to as the “interim financial statements”). Management is responsible for the preparation and presentation of these interim condensed financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Other Matter Paragraph

The figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the three-months period ended June 30, 2019 and 2018 have not been reviewed, as we are required to review only the cumulative figures for the six-months period ended June 30, 2019.

The engagement partner on the review resulting in this independent auditors' review report is Mr. Inam ul Haque.

RSM AVAIS HYDER LIAQUAT NAUMAN CHARTERED ACCOUNTANTSPlace: LahoreDate: August 29, 2019

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CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)As At June 30, 2019



(Audited)


CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)

Window Takaful OperationsSPI Insurance Company Limited

for the six-months period ended June 30, 2019


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CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)for the six-months period ended June 30, 2019




CONDENSED INTERIM STATEMENT OF CHANGES IN FUNDS (UN-AUDITED)


for the six-months period ended June 30, 2019


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CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)for the six-months period ended June 30, 2019






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August 29, 2019



Head Office:

UIG House, 6-D, Upper Mall, Lahore.

T: (92-42) 35776561-62, 67, 68

F: (92-42) 35776560

E: [email protected]

W: www.spiinsurance.com.pk

2nd quarter report 2019 - spi insurance company limited · 2019-09-19 · content spi insurance...

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