spiinsurance.com.pk · bank al-falah limited-islamic bank al-habib limited habib bank limited hsbc...

www.spiinsurance.com.pk

Quarterly Report | for the nine months ended September 30, 2013

GROWING VALUES

Head Office:1st Floor, UIG House, 6 - D, Upper Mall, Lahore. T: (92-42) 35776561-62-67-68, 35756563F: (92-42) 35776560E: [email protected]

Concept, Design & Printed by: Al-Imran www.alimranprinters.com

(formerly Saudi Pak Insurance Company Limited)

Contents

What isinside?

Business review

Governance

Financial Statements

Company Information

Directors’ Report to the Members

Balance Sheet

Profit and Loss Account

Statement of Cash Flows

Statement of Comprehensive Income

Statement of Changes in Equity

Statement of Premiums

Statement of Claims

Statement of Expenses

Statement of Investment Income

Notes to the Financial Statements

2

5

8

10

12

14

15

16

18

20

22

23

2 SPI Insurance Company Limited(formerly Saudi Pak Insurance Company Limited)

Audit Committee

Mr. Jameel A. Khan (Chairman)

Mr. Abdul Majeed (Member)

Sheikh Aftab Ahmed (Member)

Chief Internal Auditor

Mian Mohsin Aslam

Auditors

M/s Avais Hyder Liaquat Nauman

Chartered Accountants

Tax Consultant

M/s Muhammad Bilal & Company

Chartered Accountants

Registered Office

Suite # 204-A, Second Floor,

Madina City Mall, Abdullah Haroon Road,

Karachi.

Phone # (021) 37010190,

Fax # (021) 37010191

Head Office

1st Floor, UIG House,

6 - D, Upper Mall

Lahore.

Phone # (042) 35776561-62-67-68, 35756563

Fax # (042) 35776560

E-mail: [email protected]

Website: www.spiinsurance.com.pk

Company Information

Chairman

Mr. Aziz Ullah Memon

Managing Director & Chief Executive

Mian M. A. Shahid

Directors

Ms. Parveen Akhter Malik

Mr. Adnan Afridi

Mr. Abdul Majeed

Sheikh Aftab Ahmed

Mr. Jameel A. Khan

Chief Financial Officer

Mr. Naeem Tariq

Company Secretary

Mr. Noshad Ahmed

Legal Advisors

M/s Mandviwalla & Zafar

M/s Zeeshan Abdullah Associates

M/s M. A. Hamdani Law Associates

Human Resources Committee

Ms. Parveen Akhter Malik (Chairperson)

Mr. Jameel A. Khan (Member)

Mian M. A. Shahid (Member)

Risk Management Committee

Mr. Adnan Afridi (Chairman)

Mian M. A. Shahid (Member)

Ms. Parveen Akhter Malik (Member)

Quarterly Report | for the nine months ended September 30, 2013 3

Key Management Personnel

Managing Director & Chief Executive Officer Mian M. A. Shahid

Deputy Managing Director Mr. Shaheryar Akbar Raja

Advisors Mr. Naseer Ahmed(Former Member Revenue CBR)

(Former Additional Secretary Military Finance)

(Former Additional Secretary Finance)

General Manager Admin Mr. Jamil Ahmed

Chief Manager Underwriting Mr. Imtiaz Ali

General Manager Health Mr. Muneer Khan

Chief Manager Claims Mr. Khalid Nazeer Bajwa

Manager Claims Non Motor Mr. Naveed ul Haq Nomani

Chief Manager Re-Insurance Mr. Faisal Akbar (FCA)

Manager I.T Mr. Munir Ahmed

Manager Accounts Muhammad Saleem Akhtar (FCMA)


Company Information

Bankers Apna Microfinance Bank Limited

Bank Al-Falah Limited

Bank Al-Falah Limited-Islamic

Bank Al-Habib Limited

Habib Bank Limited

HSBC Bank Limited

KASB Bank Limited

National Bank of Pakistan

NIB Bank Limited

SILKBANK Limited

Sindh Bank Limited

Soneri Bank Limited

Standard Chartered Bank Limited

State Bank of Pakistan

Tameer Microfinance Bank Limited

The Bank Of Punjab

United Bank Limited


Directors’ Review to the Members

Dear Fellow Members!

The directors of ‘’SPI Insurance Company Limited’’ are pleased to submit the review report of the company together with the un-audited financial statement for the nine months ended September 30, 2013.

Sep 30, Sep 30,2013 2012(Rupees in thousands)

The overall business figures are:Premium written 283,473 246,438Net Premium 210,948 143,022Net Claims 82,124 36,483Investment income 8,914 7,255Net Commission 23,859 10,340Expenses of Management 61,165 67,119Underwriting Result 43,798 31,078Profit / (Loss) before tax 22,681 27,023Less: Provision for taxation 8,993 1,430Profit / (Loss) after tax 13,688 25,593E.P.S 0.42 0.79

Keeping in view the challenging economic conditions of the country the company performed well during the period under review. The gross premium stands at Rs. 283.473 million as against RS. 246.438 million as compared to corresponding period of last year, and attained 15.03% increase in premium. The net premium of Rs. 210.948 million posted as against Rs. 143.022 million during the same period of last year with an increase of 43.49%.The underwriting results stands at Rs. 43.798 million as against Rs. 31.078 million during the same period of last year.

The investment income for the nine months ended September 30, 2013 is Rs. 8.914 million, as against Rs 7.255 million for the corresponding period of the last year. The profit before tax is posted at Rs. 22.681 million against Rs 27.023 million during pervious period of last year.

The cash and bank deposit stood at Rs.60.824 million and investment at Rs. 121.972 million respectively as against Rs. 55.191 million and Rs 92.951 million for the period ended on September 30, 2012. Profit after tax for the nine months ended September 30, 2013 has however declined to Rs.13.688 million from 25.593 million during the same period of last year mainly owing to payment of huge claims and incidence of additional taxes.

Change of Company’s name:

The name of Saudi Pak Insurance Company Limited has been changed to SPI Insurance Company Limited w.e.f September 27, 2013 after due approval from Securities and Exchange Commission of Pakistan.

Future outlook:

While realizing that there will be further challenges in the coming period, the spirit to strive hard and achieve against odds makes us believe that in the coming period we will be able to maintain the desired growth and the overall performance for the year 2013 will be more significant and stable.


Acknowledgement:

We appreciate and extend our gratitude to valued customers, employees and development staff for their continued support for the success of SPI Insurance Company Limited. We are also grateful to Securities and Exchange Commission of Pakistan (Insurance Division) for their professional guidance and assistance.

For and on behalf of the Board

Aziz Ullah Memon

Karachi: October 29, 2013 Chairman

Financial StatementFor The Nine Months Ended September 30, 2013


Unaudited AuditedSeptember 30, December 31,

Note 2013 2012Rupees Rupees

Share capital and reserves

Authorized share capital 5 500,000,000 500,000,000

Paid-up share capital 5 325,000,000 325,000,000 Accumulated loss (53,822,918) (67,510,963)Total equity 271,177,082 257,489,037

Underwriting provisions

Provision for outstanding claims (including IBNR) 78,342,210 80,911,792 Provision for unearned premium 151,095,418 145,874,535 Additional provision for unexpired risks 6,741,166 6,741,166 Commission income unearned 292,459 12,250,183 Total underwriting provisions 236,471,253 245,777,676

Deferred Liabilities

Staff retirement gratuity 3,598,366 2,294,644

Creditors and accruals

Premium received in advance 589,605 1,660,784 Amounts due to other insurers/reinsurers 12,761,227 7,576,658 Accrued expenses 6 7,446,281 6,790,489 Other creditors and accruals 7 8,495,816 8,235,495

29,292,929 24,263,426 TOTAL LIABILITIES 269,362,548 272,335,746

TOTAL EQUITY AND LIABILITIES 540,539,630 529,824,783

CONTINGENCIES AND COMMITMENTS 8 - -

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

Condensed Interim Balance Sheet (Un-Audited)AS AT SEPTEMBER 30, 2013

Aziz Ullah Memon Chairman

Mian M.A. ShahidChief Executive Officer


Unaudited AuditedSeptember 30, December 31,

Note 2013 2012Rupees Rupees

Cash & bank deposits

Cash and other equivalents 971,803 918,117 Current and other accounts 58,832,967 28,434,551 Deposits maturing within 12 months 930,000 40,966,000 Cash with State Bank of Pakistan 89,639 89,639

60,824,409 70,408,307

LOANS TO EMPLOYEES 1,508,286 501,116 Investments 9 121,972,489 93,659,604Deferred Tax Asset 44,065,199 52,003,623

CURRENT ASSETS - OTHERSPremium due but unpaid 10 57,884,798 48,702,076 Amount due from other insurers/reinsurers 11 89,903,210 45,544,938 Prepaid reinsurance premium ceded 22,568,203 49,466,557 Accrued investment income 1,699,561 3,758,916 Reinsurance recoveries against outstanding claims 50,320,291 71,288,878 Taxation-payment less provision 4,951,478 4,541,771 Deferred commission expense 17,900,606 20,759,255 Prepayments 7,826,314 5,801,962 Sundry receivables 6,556,464 6,777,826

259,610,925 256,642,179 FIXED ASSETS

Tangible

Office improvements 9,642,936 10,330,878 Furniture and fixtures 2,979,613 2,892,391 Office equipment 4,781,704 4,645,249 Computer equipment 2,213,335 2,124,800 Motor vehicles 32,721,559 36,361,369

52,339,147 56,354,687 Intangible Computer software 219,175 255,267 TOTAL ASSETS 540,539,630 529,824,783

Condensed Interim Balance Sheet (Un-Audited)AS AT SEPTEMBER 30, 2013

Jameel A. KhanDirector

Parveen Akhter MalikDirector


Condensed Interim Profit And Loss Account (Un-Audited)For The Nine Months Ended September 30, 2013

Quarter September 30, 2013

NoteFire and Property Damage

Marine, Aviation and

TransportMotor Miscellaneous

Quarter ended September 30,

2013Aggregate

Quarter ended September 30,

2012Aggregate

……………………………………………...Rupees…………………………………………..

Revenue account

Net premium revenue 14,703,227 5,916,721 38,395,693 21,167,257 80,182,899 59,394,376 Net claims (4,536,264) (464,844) (17,994,045) (12,158,970) (35,154,123) (13,191,563)

Premium deficiency reversal - - - - - -

Management expenses (7,699,897) (2,158,001) (8,014,487) (4,168,273) (22,040,658) (26,883,626)

Net commission (196,867) (1,426,937) (3,493,619) (2,152,741) (7,270,164) (4,889,033)

Underwriting results 2,270,198 1,866,939 8,893,543 2,687,273 15,717,954 14,430,155

Investment income 3,204,069 2,595,825

Other income 21,566 20,224

General & administration

expenses (12,590,417) (4,744,169)

Profit/ (loss) before tax 6,353,172 12,302,035

Less : Taxation

Current (400,914) (593,944)

Deferred (2,223,610) -

(2,624,525) (593,944)

Profit/ (loss) after Tax 3,728,647 11,708,091

Basic earning per share 0.11 0.36






Condensed Interim Profit And Loss Account (Un-Audited)For The Nine Months Ended September 30, 2013

Nine months ended September 30, 2013

NoteFire and Property Damage

Marine, Aviation and

TransportMotor Miscellaneous

Nine months ended

September 30, 2013 Aggregate

Nine months ended

September 30, 2012 Aggregate

……………………………………………...Rupees…………………………………………..

Revenue accountNet premium revenue 51,820,632 15,338,047 95,348,194 48,441,689 210,948,562 143,022,120

Net claims (16,241,605) (4,863,296) (36,214,899) (24,804,419) (82,124,219) (36,483,287)

Premium deficiency reversal - - - - - 2,000,656

Management expenses (18,234,926) (5,065,989) (22,027,310) (15,837,589) (61,165,813) (67,119,950)

Net commission (7,245,388) (3,937,676) (8,480,828) (4,195,925) (23,859,817) (10,340,738)

Underwriting results 10,098,713 1,471,087 28,625,158 3,603,756 43,798,713 31,078,801

Investment income 8,914,524 7,255,905

Other income 47,278 643,748

General & administration expenses (30,079,303) (11,954,697)

Profit/ (loss) before tax 22,681,212 27,023,757

Less : Taxation 13

Current (1,054,743) (1,430,221)

Deferred (7,938,424) -

(8,993,167) (1,430,221)

Profit/ (loss) after Tax 13,688,045 25,593,536

Profit and loss appropriation account

Balance at commencement of period (67,510,963) (142,455,661)

Profit after tax for the period 13,688,045 25,593,536

Profit available for appropriation (53,822,918) (116,862,125)

Balance un-appropriated profit / (loss) at end of period (53,822,918) (116,862,125)

Basic earning per share 0.42 0.79



Condensed Interim Cash Flow Statement (Un-Audited)For The Nine Months Ended September 30, 2013

September 30, September 30, 2013 2012

Rupees Rupees

Operating cash flows:

a) Underwriting activities:

Premiums received 273,219,664 244,679,345

Reinsurance premiums paid (35,221,197) (84,938,117)

Claims paid (115,022,881) (97,529,297)

Reinsurance and other recoveries received 6,939,395 38,501,093

Commission paid (33,442,919) (34,050,042)

Commission received 484,027 21,381,929

Other underwriting payments (53,842,881) (62,365,556)

Net cash flow from underwriting activities 43,113,208 25,679,355

b) Other operating activities:

Income tax paid (1,464,449) (1,479,346)

General and management expenses paid (30,079,303) (11,954,697)

Other operating payments (1,802,989) (2,147,139)

Other operating receipts 916,113 400,597

Loans and advances paid (1,007,170) (217,707)

Net cash outflow from other operating activities (33,437,798) (15,398,292)

Total cash flow from operating activities 9,675,410 10,281,063

Investment activities:

Profit/ return received 10,951,454 7,305,576

Dividend received 22,425 17,850

Payments for investments (28,312,885) (10,609,048)

Proceeds from disposal of investments - 16,983,756

Fixed capital expenditure (1,920,302) (31,773,730)

Total cash flow from investing activities (19,259,309) (18,075,596)

Net cash inflow / (outflow) from all activities (9,583,898) (7,794,533)

Cash and cash equivalents at beginning of the period 70,408,307 62,986,038

Cash and cash equivalents at end of the period 60,824,409 55,191,505






Condensed Interim Cash Flow Statement (Un-Audited)For The Nine Months Ended September 30, 2013

September 30, September 30, 2013 2012

Rupees Rupees

Reconciliation to Profit and Loss Account

Operating cash flows 9,675,410 10,281,063

Depreciation / amortisation expense (5,971,932) (4,077,464)

Investment and other income 8,892,099 7,949,324

Provision for doubtful debts (3,127,637) (495,994)

Dividend income 22,425 17,850

(Decrease) / increase in assets other than cash 10,217,651 17,595,872

Decrease / (Increase) in liabilities other than running finance 2,973,198 (5,677,116)

Reversal/ (Provision) for taxation (8,993,167) -

Profit/(loss) after Taxation 13,688,047 25,593,535

Definition of cash

Cash comprises of cash in hand, policy stamps and bank balances which are readily convertible to cash in hand and which are use d in the cash management function on a day to day basis.

Cash for the purpose of statement of cash flows consists of :

Cash and cash equivalents

Cash and other equivalents 971,803 524,550

Current and saving accounts 58,832,967 14,330,272

Deposits maturing within 3 months 930,000 39,966,000

Cash with State Bank of Pakistan 89,639 370,683

60,824,409 55,191,505







Condensed Interim Statement Of Comprehensive Income (Un-Audited)For The Nine Months Ended September 30, 2013

Quarter ended Nine months endedSeptember 30, 2013

September 30, 2012

September 30, 2013

September 30, 2012

…………………………...Rupees……………………………

Profit/ (loss) for the period 5,405,629 10,207,196 9,959,397 13,885,446

Other comprehensive income - - - -

Total comprehensive profit / (loss) for the period 3,728,647 11,708,091 13,688,045 25,593,536







Condensed Interim Statement Of Changes In Equity (Un-Audited)For The Nine Months Ended September 30, 2013

Description Share capital ACCUMULATED LOSS TOTAL

……………………………..RUPEES…………………………….

Balance as at January 01, 2012 325,000,000 (142,455,661) 182,544,339

Net profit for the period - 25,593,536 25,593,536

Balance as at September 30, 2012 325,000,000 (116,862,125) 208,137,875

Balance as at January 01, 2013 325,000,000 (67,510,963) 257,489,037

Net profit for the period - 13,688,045 13,688,045

Balance as at September 30, 2013 325,000,000 (53,822,918) 271,177,082



Con

dens

ed In

terim

Sta

tem

ent

of P

rem

ium

s (U

n-Au

dite

d)Fo

r The

Nin

e M

onth

s En

ded

Sep

tem

ber 3

0, 2

013

Qua

rter

end

ed S

epte

mbe

r 30

, 20

13Q

uart

er e

nded

S

epte

mbe

r 30

, 20

12

Busi

ness

Und

erw

ritte

n In

side

Pak

ista

n

Cla

ssPr

emiu

ms

writ

ten

Une

arne

d pr

emiu

m

rese

rve

Prem

ium

s ea

rned

Rein

sura

nce

prem

ium

ced

ed

Prep

aid

rein

sura

nce

prem

ium

ced

edRe

insu

ranc

e

expe

nses

Net

pre

miu

m

reve

nue

Net

pre

miu

m

reve

nue

Ope

ning

Clo

sing

Ope

ning

C

losi

ng

----

----

----

----

----

----

----

----

----

----

----

----

----

---R

upee

s---

----

----

----

----

----

----

----

----

----

----

----

----

Dire

ct &

fac

ulta

tive

Fire

and

pro

pert

y da

mag

e 3

4,16

1,94

5 5

3,98

2,0

52

57,

558

,619

3

0,5

85,

378

8

,925

,28

7 2

4,73

5,98

9 1

7,779

,125

1

5,8

82,

151

14,

703,

227

15,

842

,958

Mar

ine,

avi

atio

n an

d tr

ansp

ort

9,5

80

,799

2

,452

,060

4

,113

,094

7

,919

,765

2

,450

,250

8

40,5

17

1,2

87,7

23

2,0

03,

044

5

,916

,721

5

,195

,754

Mot

or 3

5,11

7,0

42

56,

718

,817

5

2,73

9,96

3 3

9,0

95,8

96

540

,339

9

97,3

20

837

,456

7

00

,20

3 3

8,3

95,6

93

30

,022

,721

Mis

cella

neou

s 1

7,63

0,5

86

43,

768

,346

3

6,68

3,74

2 2

4,71

5,19

0

1,4

72,4

88

4

,739

,344

2

,663

,899

3

,547

,933

2

1,16

7,25

7 8

,332

,943

GRA

ND

TO

TAL

96,

490,

372

156

,921

,275

1

51,0

95,4

18

10

2,31

6,22

9 1

3,38

8,3

64

31,

313,

171

22,

568

,20

3 2

2,13

3,33

1 8

0,1

82,

899

5

9,39

4,37

6


Nin

e m

onth

s en

ded

Sep

tem

ber

30, 2

013

Nin

e m

onth

s en

ded

Sep

tem

ber

30, 2

012

Busi

ness

Und

erw

ritte

n In

side

Pak

ista

n

Cla

ssPr

emiu

m

writ

ten

Une

arne

d pr

emiu

m

rese

rve

Prem

ium

ea

rned

Rein

sura

nce

prem

ium

ced

ed

Prep

aid

rein

sura

nce

prem

ium

ced

edRe

insu

ranc

e

expe

nses

Net

pre

miu

m

reve

nue

Net

pre

miu

m

reve

nue

Ope

ning

Clo

sing

Ope

ning

C

losi

ng

----

----

----

----

----

----

----

----

----

----

----

----

----

---R

upee

s---

----

----

----

----

----

----

----

----

----

----

----

----

Dire

ct &

fac

ulta

tive

Fire

and

pro

pert

y da

mag

e 8

4,50

9,94

5 7

3,8

38,9

60

57,

558

,619

1

00

,790

,28

6 2

6,10

4,0

45

40

,644

,734

1

7,779

,125

4

8,9

69,6

54

51,

820

,632

2

3,26

7,93

0

Mar

ine,

avi

atio

n an

d tr

ansp

ort

23,

478

,375

3

,544

,637

4

,113

,094

2

2,90

9,91

8

7,3

50,5

84

1,5

09,

010

1

,28

7,723

7

,571

,871

1

5,33

8,0

47

12,

535,

516

Mot

or 1

02,

08

5,78

4 4

7,67

0,3

98

52,

739,

963

97,

016

,219

1

,621

,017

8

84,

464

837

,456

1

,668

,025

9

5,34

8,1

94

62,

363,

711

Mis

cella

neou

s 7

3,39

9,46

1 2

0,8

20,5

40

36,

683,

742

57,

536,

259

5,3

30,1

20

6,4

28,3

49

2,6

63,8

99

9,0

94,5

70

48

,441

,68

9 4

4,8

54,9

62

GRA

ND

TO

TAL

283

,473,

565

145

,874

,535

1

51,0

95,4

18

278

,252

,68

2 4

0,4

05,

766

49,

466,

557

22,

568

,20

3 6

7,30

4,12

0

210

,948

,562

1

43,0

22,1

19

The

anne

xed

note

s fo

rm a

n in

tegr

al p

art

of t

hese

con

dens

ed in

terim

fina

ncia

l sta

tem

ents

.

Jam

eel A

. Kha

nD

irect

orPa

rvee

n A

khte

r M

alik

Dire

ctor

Azi

z U

llah

Mem

on

Cha

irman

Mia

n M

.A. S

hahi

dC

hief

Exe

cutiv

e O

ffice

r


Con

dens

ed In

terim

Sta

tem

ent

of C

laim

s (U

n-Au

dite

d)Fo

r The

Nin

e M

onth

s En

ded

Sep

tem

ber 3

0, 2

013

Qua

rter

end

ed S

epte

mbe

r 30

, 20

13Q

uart

er e

nded

S

epte

mbe

r, 30

20

12

Busi

ness

Und

erw

ritte

n In

side

Pak

ista

n

Cla

ssC

laim

s pa

id

Out

stan

ding

cla

ims

Cla

ims

exp

ense

Rein

sura

nce

an

d ot

her

reco

verie

s re

ceiv

ed

Rein

sura

nce

and

othe

r re

cove

ries

in r

espe

ct o

f ou

tsta

ndin

g cl

aim

s

Rein

sura

nce

an

d ot

her

reco

verie

s re

venu

e

Net

cla

ims

expe

nses

Net

cla

ims

expe

nses

Ope

ning

Clo

sing

Ope

ning

C

losi

ng

----

----

----

----

----

----

----

----

----

----

----

----

----

----

-Rup

ees-

----

----

----

----

----

----

----

----

----

----

----

----

----

----

Dire

ct &

fac

ulta

tive

Fire

and

pro

pert

y da

mag

e 7

,68

9,50

5 3

3,24

2,24

9 3

5,55

4,78

4 1

0,0

02,

040

5

,835

,669

3

0,0

12,2

08

2

9,64

2,31

5 5

,465

,776

4

,536

,264

3

,88

3,52

4

Mar

ine,

avi

atio

n an

d tr

ansp

ort

233

,78

8

4,1

35,3

03

4,3

84,

771

48

3,25

6 1

2,55

7 2

,20

6,79

2 2

,212

,647

1

8,4

12

464

,844

1

,142

,70

4

Mot

or 1

5,67

9,61

8

11,

404,

494

18

,067

,693

2

2,34

2,8

17

4,5

68,5

72

4,9

19,0

00

4

,699

,20

0

4,3

48,7

72

17,

994,

045

6

,50

4,20

6

Mis

cella

neou

s 8

,535

,347

2

0,2

10,7

81

20

,334

,962

8

,659

,528

-

1

7,26

5,57

1 1

3,76

6,12

9 (3

,499

,442

) 1

2,15

8,9

70

1,6

61,1

29

GRA

ND

TO

TAL

32,

138

,258

6

8,9

92,8

27

78,

342,

210

4

1,48

7,64

1 1

0,4

16,7

98

54,

403,

571

50

,320

,291

6

,333

,518

3

5,15

4,12

3 1

3,19

1,56

3


Nin

e m

onth

s en

ded

Sep

tem

ber

30, 2

013

Nin

e m

onth

s en

ded

Sep

tem

ber

30, 2

012

Busi

ness

Und

erw

ritte

n In

side

Pak

ista

n

Cla

ssC

laim

s pa

id

Out

stan

ding

cla

ims

Cla

ims

exp

ense

Rein

sura

nce

an

d ot

her

reco

verie

s re

ceiv

ed

Rein

sura

nce

and

othe

r re

cove

ries

in r

espe

ct o

f ou

tsta

ndin

g cl

aim

s

Rein

sura

nce

an

d ot

her

reco

verie

s re

venu

e

Net

cla

ims

expe

nses

Net

cla

ims

expe

nses

Ope

ning

Clo

sing

Ope

ning

C

losi

ng

----

----

----

----

----

----

----

----

----

----

----

----

----

----

-Rup

ees-

----

----

----

----

----

----

----

----

----

----

----

----

----

----

Dire

ct &

fac

ulta

tive

Fire

and

pro

pert

y da

mag

e 5

6,40

5,68

0

43,

581,

634

35,

554,

784

48

,378

,830

4

3,8

98,3

23

41,

403,

413

29,

642,

315

32,

137,

225

16,

241,

605

6,7

31,5

60

Mar

ine,

avi

atio

n an

d tr

ansp

ort

5,5

53,7

67

4,0

97,5

21

4,3

84,

771

5,8

41,0

17

344

,08

2 1

,579

,00

8

2,2

12,6

47

977

,721

4

,863

,296

3

,591

,162

Mot

or 3

3,8

93,6

99

11,

375,

686

18

,067

,693

4

0,5

85,

706

6,5

09,

607

6,8

38,0

00

4

,699

,20

0

4,3

70,8

07

36,

214,

899

1

9,8

63,7

61

Mis

cella

neou

s 1

9,16

9,73

5 2

1,8

56,9

51

20

,334

,962

1

7,64

7,746

5

45,6

55

21,

468

,457

1

3,76

6,12

9 (7

,156

,673

) 2

4,8

04,

419

6,2

96,8

04

GRA

ND

TO

TAL

115

,022

,88

1 8

0,9

11,7

92

78,

342,

210

1

12,4

53,2

99

51,

297,

667

71,

288

,878

5

0,3

20,2

91

30

,329

,08

0

82,

124,

219

36,

483,

287

The

anne

xed

note

s fo

rm a

n in

tegr

al p

art

of t

hese

con

dens

ed in

terim

fina

ncia

l sta

tem

ents

.

Jam

eel A

. Kha

nD

irect

orPa

rvee

n A

khte

r M

alik

Dire

ctor

Azi

z U

llah

Mem

on

Cha

irman

Mia

n M

.A. S

hahi

dC

hief

Exe

cutiv

e O

ffice

r


Con

dens

ed In

terim

Sta

tem

ent

of E

xpen

ses

(Un-

Audi

ted)

For T

he N

ine

Mon

ths

Ende

d S

epte

mbe

r 30

, 20

13

Qua

rter

end

ed S

epte

mbe

r 30

, 20

13Q

uart

er e

nded

Sep

tem

ber

30,

2012

Busi

ness

Und

erw

ritte

n In

side

Pak

ista

n

Cla

ssC

omm

issi

ons

paid

or

paya

ble

Def

erre

d co

mm

issi

on

Net

co

mm

issi

on

expe

nse

Oth

er

man

agem

ent

expe

nses

Und

erw

ritin

g ex

pens

es

Com

mis

sion

rece

ived

fr

om

re-i

nsur

ers

Une

arne

d co

mm

issi

onC

omm

issi

on

from

re

-ins

urer

s

Net

un

derw

ritin

g ex

pens

es

Net

un

derw

ritin

g ex

pens

esO

peni

ngC

losi

ngO

peni

ngC

losi

ng

----

----

----

----

----

----

----

----

----

----

----

----

----

----

-Rup

ees-

----

----

----

----

----

----

----

----

----

----

----

----

----

----

Dire

ct &

fac

ulta

tive

Fire

and

pro

pert

y da

mag

e 3

,98

3,10

5 1

0,4

64,6

01

9,3

21,1

92

5,1

26,5

14

7,6

99,8

97

12,

826

,411

1

19,6

73

4,9

99,8

13

18

9,8

39

4,9

29,6

47

7,8

96,7

64

13,

228

,690

Mar

ine, a

viatio

n a

nd tr

ansp

ort

1,8

70,1

02

463

,134

7

85,

391

1,5

47,8

45

2,1

58,0

01

3,7

05,

846

-

1

20,8

99

(9)

120

,90

8

3,5

84,9

38

2,8

40,3

96

Mot

or 3

,426

,023

4

,98

6,52

2 4

,918

,927

3

,493

,618

8

,014

,48

7 1

1,50

8,1

05

-

-

-

-

11,

508,

105

11,

523,

911

Mis

cella

neou

s 1

,837

,668

3

,78

4,94

8

2,8

75,0

96

2,7

47,5

20

4,1

68,2

73

6,9

15,7

93

-

697

,40

8

10

2,62

9 5

94,7

79

6,3

21,0

14

4,1

79,6

62

GRA

ND

TO

TAL

11,

116,

898

1

9,69

9,20

5 1

7,90

0,6

06

12,

915,

497

22,

040

,658

3

4,95

6,15

5 1

19,6

73

5,8

18,1

20

292

,459

5

,645

,334

2

9,31

0,82

1 3

1,77

2,65

9


Nin

e m

onth

s en

ded

Sep

tem

ber

30, 2

013

Nin

e m

onth

s en

ded

Sep

tem

ber

30, 2

012

Busi

ness

Und

erw

ritte

n In

side

Pak

ista

n

Cla

ssC

omm

issi

ons

paid

or

paya

ble

Def

erre

d co

mm

issi

on

Net

co

mm

issi

on

expe

nse

Oth

er

man

agem

ent

expe

nses

Und

erw

ritin

g ex

pens

es

Com

mis

sion

rece

ived

fr

om

re-i

nsur

ers

Une

arne

d co

mm

issi

onC

omm

issi

on

from

re

-ins

urer

s

Net

un

derw

ritin

g ex

pens

es

Net

un

derw

ritin

g ex

pens

esO

peni

ngC

losi

ngO

peni

ngC

losi

ng

----

----

----

----

----

----

----

----

----

----

----

----

----

----

-Rup

ees-

----

----

----

----

----

----

----

----

----

----

----

----

----

----

Dire

ct &

fac

ulta

tive

Fire

and

pro

pert

y da

mag

e 1

3,68

5,76

0

13,

303,

430

9

,321

,192

1

7,66

7,99

8

18

,234

,926

3

5,90

2,92

4 2

78,7

29

10

,333

,720

1

89,

839

1

0,4

22,6

10

25,

480,

314

28

,329

,70

5

Mar

ine, a

viatio

n a

nd tr

ansp

ort

4,4

83,

169

692

,560

7

85,

391

4,3

90,3

38

5,0

65,9

89

9,4

56,3

27

(50

) 4

52,7

03

(9)

452

,662

9

,003

,665

7

,80

7,440

Mot

or 9

,521

,291

3

,88

8,8

66

4,9

18,9

27

8,4

91,2

30

22,

027

,310

3

0,5

18,5

40

-

10

,40

2 -

1

0,4

02

30,

508,

138

3

0,2

01,

065

Mis

cella

neou

s 5

,752

,698

2

,874

,40

0

2,8

75,0

96

5,7

52,0

02

15,

837

,58

9 2

1,58

9,59

1 2

05,

348

1

,453

,358

1

02,

629

1,5

56,0

77

20,

033,

514

11,

122,

479

GRA

ND

TO

TAL

33,

442,

918

2

0,7

59,2

55

17,

900

,60

6 3

6,30

1,56

8

61,

165,

813

9

7,467

,38

2 4

84,

027

1

2,25

0,1

83

292

,459

1

2,44

1,75

1 8

5,02

5,63

1 7

7,460

,689

The

anne

xed

note

s fo

rm a

n in

tegr

al p

art

of t

hese

con

dens

ed in

terim

fina

ncia

l sta

tem

ents

.

Jam

eel A

. Kha

nD

irect

orPa

rvee

n A

khte

r M

alik

Dire

ctor

Azi

z U

llah

Mem

on

Cha

irman

Mia

n M

.A. S

hahi

dC

hief

Exe

cutiv

e O

ffice

r






Condensed Interim Statement Of Investment Income (Un-Audited)For The Nine Months Ended September 30, 2013

Quarter ended Nine months ended

September September September September30, 2013 30, 2012 30, 2013 30, 2012

..........................................Rupees................................................

Income from held for trading investments

Gain on sale of trading 643,754 - 643,754 -Dividend income - - - -

643,754 - 643,754 -

Income from non-trading investments:

Held-to-maturity

Return on government securities 2,397,863 1,523,657 5,569,588 3,478,675 Return on TDRs 127,130 1,073,210 2,504,446 3,725,335 Return on treasury bills 68,102 61,828 211,894 101,566

Available-for-sale

Dividend income - - 22,425 17,850 2,593,095 2,658,695 8,308,353 7,323,426

Gain/(loss) on sale of non-trading

investments

Available-for-sale - - - -

Impairment (loss) on non-trading investments

Available-for-sale - - - -

Investment related expenses (32,780) (62,870) (37,583) (67,521)Net investment income 3,204,069 2,595,825 8,914,524 7,255,905



Notes To The Condensed Interim Financial StatementsFor The Nine Months Ended September 30, 2013

1 STATUS AND NATURE OF BUSINESS

SPI Insurance Company Limited (Formerly Saudi Pak Insurance Company Limited) (the Company) is an unquoted public limited company incorporated in Islamabad, Pakistan on February 15, 2005 under the Companies Ordinance, 1984. The Company is engaged in non-life insurance business mainly comprising of fire, marine, motor and miscellaneous. The Company commenced its commercial operations on April 13, 2005. The registered office of the Company is situated at Suite # 204-A, Second Floor, Madina City Mall, Abdullah Haroon Road, Karachi and principal office of the Company is situated at UIG House, 6-D, Upper Mall, Lahore, Pakistan.

2 BASIS OF PREPARATION

The accounting policies and the methods of computation of preparation of these condensed interim financial statements are the same as those applied in the preparation of the financial statements for the year ended December 31, 2012.

2.1 Statement of compliance

These condensed interim financial statements have been prepared in accordance with the requirements of International Accounting Standard 34 - Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance, 1984, the Insurance Ordinance, 2000 and SEC (Insurance) Rules, 2002. In case requirements differ, the provisions or directives of the Companies Ordinance, 1984, the Insurance Ordinance, 2000 and the SEC (Insurance) Rules, 2002 shall prevail.

2.2 Basis of measurement

These financial statements have been prepared under the historical cost convention except that certain financial instruments are carried at fair value and staff retirement benefits are stated at present value.

2.3 Functional and presentation currency

These financial statements are presented in Pakistan Rupees, which is also the Company’s functional and presentation currency. All financial information presented in Pakistan rupees are rounded off to nearest rupees unless otherwise stated.

2.4 Use of estimates and judgments

The preparation of the condensed interim financial statement requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

The significant judgments made by management and the key sources of estimating uncertainty in preparation of these condensed interim financial statements were same as those applied to the annual financial statements for the year ended December 31, 2012.

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies adopted in the preparation of the condensed interim financial statements are the same as those applied in the preparation of the financial statements of the Company for the year ended December 31, 2012.

4 FINANCIAL RISK AND CAPITAL MANAGEMENT

The Company’s financial risk management and capital management objectives and policies are consistent with that disclosed in the annual financial statements for the year ended December 31, 2012.



September December30, 2013 31, 2012

(Rupees)5 AUTHORIZED SHARE CAPITAL

Sep 30, Dec 31,2013 2012

(Number of Shares)50,000,000 50,000,000 Ordinary shares of Rs. 10/- each 500,000,000 500,000,000

5.1 PAID-UP SHARE CAPITALIssued, subscribed and paid up capital:

Sep 30,2013

Dec 31,2012

(Number of Shares)

25,000,000 25,000,000 Ordinary shares of Rs. 10/- each

fully paid in cash

250,000,000 250,000,000

7,500,000 7,500,000 Ordinary shares of Rs. 10/- each

issued as fully paid right shares

75,000,000 75,000,000

32,500,000 32,500,000 325,000,000 325,000,000

6 ACCRUED EXPENSES

Audit fee payable - 450,000 Salaries wages and benefits payable 5,580,846 5,485,622 Utilities payable 525,081 430,870 Others 1,340,354 423,997

7,446,281 6,790,489

7 OTHER CREDITORS AND ACCRUALS

Commission - 1,969,467 Rent 18,000 18,000 Government levies payable 7,662,108 5,344,242 Liabilities against cancelled policies 81,614 81,614 Withholding Tax 128,999 183,187 Others 605,095 638,985

8,495,816 8,235,495

8 CONTINGENCIES AND COMMITMENTS

There have been no changes in the contingencies and commitments as disclosed in the annual financial statements of the company for the year ended December 31, 2012.



(Rupees)

9 INVESTMENTS

The investments comprise the following:

Held to maturity

Pakistan Investment Bonds 9.1 76,972,489 48,201,543

Available for sale

Ordinary shares of listed companies 9.2 226,625 684,686 Ordinary shares of unlisted companies 45,000,000 45,000,000 Provision for diminution in value of investments (226,625) (226,625)

45,000,000 45,458,061

121,972,489 93,659,604

9.1 These bonds are held in favour of State Bank of Pakistan in accordance with the requirement of Section 29 of the Insurance Ordinance, 2000. These bonds have a face value of Rs. 76.03 million (Rs. 32.70 million with SBP and Rs. 19.3 million with NBP) and carry mark-up ranging from 8.90% to 12.00% (2012: 9% to 12%) per annum and would mature up to July 2022.

9.1 The market value of available for sale - equity securities as at September 30, 2013 is Rs. Nil (December 31, 2012: 805,230).


10 PREMIUM DUE BUT UNPAID

Unsecured

-Considered good 57,884,798 48,702,077

-Considered doubtful 4,922,476 2,563,267 62,807,274 51,265,344

Provision for doubtful balances 10.1 (4,922,476) (2,563,267) 57,884,798 48,702,077

10.1 Provision for doubtful balances

Opening provision (2,563,267) (2,745,354)

Charge for the period / year (2,359,209) 182,087

Closing provision (4,922,476) (2,563,267)



(Rupees)

11 AMOUNTS DUE FROM OTHER INSURERS / REINSURERS

Unsecured

-Considered good 89,903,210 45,544,938 -Considered doubtful 12,642,492 11,892,492

102,545,702 57,437,430 Provision for doubtful balances 11.1 (12,642,492) (11,892,492)

89,903,210 45,544,938

11.1 Provision for doubtful balances

Opening provision (11,892,492) (5,453,409)Charge for the period / year (750,000) (6,439,083)Closing provision (12,642,492) (11,892,492)

12 TRANSACTIONS WITH RELATED PARTIES

The related parties comprise of Saudi Pak Industrial & Agricultural Investment Company Limited , Silk Bank Limited, Saudi Pak Leasing Company Limited, and United Track Systems (Pvt.) Limited on the basis of related group companies, entities under common control, entities with common directors, major shareholders, directors, key management personnel and employee retirement benefit fund. Amount due to/from and other significant transactions, other than those disclosed elsewhere in these financial statements, are as follows:

Transactions: and balances with associated companies

Insurance premium

Balance at beginning of the period 1,545,517 32,421,665 Gross insurance premium written 31,756,352 19,729,050 (including administrative surcharge,government levies and policies stamps) Received / adjusted during the period 25,110,467 50,605,198 Balance at end of the period 2,340,168 1,545,517

Insurance claim expenseOutstanding claims at beginning of the period 5,097,579 6,946,040 Gross claims expense for the period 5,289,309 9,980,483 Claim paid during the period 6,180,497 11,828,944 Outstanding claims at end of the period 4,206,391 5,097,579








(Rupees)

Other transactions for the period with parent and other associated companies

Rental expense 1,498,500 1,887,000 Bank charges 125,705 74,989 Tracker charges 1,278,900 828,000 Profit on term deposit receipts 2,504,446 4,944,193 Profit on bank deposits 47,278 79,168

Other balances with associated companiesTerm deposits 930,000 39,966,000 Profit & Loss Sharing Accounts 2,128,889 1,026,666 Current account 17,478,219 5,552,784 Accrued investment income 1,138 2,006,052

Transaction during The period with other related parties(Key management personnel)

Contribution to provident fund - - Contribution defined benefit plans - 564,355 Remuneration of key management personnel 17,525,000 20,382,966

Balances with other related parties(Key management personnel)

(Payable) / receivable from defined benefit plan (3,598,366) (2,294,644)Loan to key management personnel - 20,000

13 TAXATION

Provision in respect of taxation, for the period under review, is estimated only and final liability will be determined on the basis of annual results.

14 DATE OF AUTHORIZATION FOR ISSUE

These interim condensed financial statements have been authorized for issue on October 29, 2013 in accordance with a resolution of board of directors of the company.

15 CORRESPONDING FIGURES

Corresponding figures have been reclassified and re-arranged, wherever necessary to confirm with the current classification. However, there are no material classification to report.


www.spiinsurance.com.pk

Quarterly Report | for the nine months ended September 30, 2013

GROWING VALUES

Head Office:1st Floor, UIG House, 6 - D, Upper Mall, Lahore. T: (92-42) 35776561-62-67-68, 35756563F: (92-42) 35776560E: [email protected]

Concept, Design & Printed by: Al-Imran www.alimranprinters.com

(formerly Saudi Pak Insurance Company Limited)

spiinsurance.com.pk · bank al-falah limited-islamic bank al-habib limited habib bank limited hsbc...

Documents