growth with stability - insurance in pakistan€™s economy witnessed a gdp growth of 5.28% during...
TRANSCRIPT
GROWTH WITH STABILITYAdamjee aspires to grow without compromising on outstanding performance to its customers. The journey to success is riddled with risks and dangers, that only the strongest and most experienced of the entities can make through. Adamjee’s strength is represented by a tree, the roots of which nourish the tree with values learned from experience. The branches of this tree spread out to explore every possible avenue that leads to Adamjee’s success.
CONTENTS
04
06
08
09
12
43
46
76
Vision / Core Values
Company Information
Directors’ report to the members onUnconsolidated Condensed Interim FinancialInformation
Directors’ report to the members onUnconsolidated Condensed Interim FinancialInformation (Urdu)
Unconsolidated Condensed Interim FinancialInformation
Directors’ Report on Consolidated CondensedInterim Financial Information
Consolidated Condensed Interim FinancialInformation
Condensed Interim FinancialInformation - Window Takaful Operations
VISIONOur will is to explore, innovate and differentiate.
Our passion is to provide leadership to insurance industry.
CORE VALUES• Integrity• Humility• Fun at the Workplace• Corporate Social
Responsibility
6 FIRST QUARTER REPORT
BOARD OF DIRECTORS Umer Mansha ChairmanFredrik Coenrard de Beer Director (Resigned Feb. 23, 2018)Ibrahim Shamsi DirectorImran Maqbool DirectorMuhammad Anees DirectorMuhammad Umar Virk DirectorShaikh Muhammad Jawed DirectorMuhammad Ali Zeb Managing Director & CEO
ADVISOR Mian Muhammad Mansha AUDIT COMMITTEE Muhammad Umar Virk ChairmanIbrahim Shamsi MemberShaikh Muhammad Jawed MemberUmer Mansha Member
ETHICS, HUMAN RESOURCE AND REMUNERATION COMMITTEE Muhammad Anees Chairman Ibrahim Shamsi Member Muhammad Ali Zeb Member Umer Mansha Member
INVESTMENT COMMITTEE Umer Mansha ChairmanImran Maqbool MemberMuhammad Ali Zeb MemberMuhammad Asim Nagi Member
COMPANY SECRETARY Tameez ul Haque F.C.A
CHIEF FINANCIAL OFFICER Muhammad Asim NagiA.C.A
COMPANY INFORMATION
7ADAMJEE INSURANCE
EXECUTIVE MANAGEMENT TEAMMuhammad Ali ZebMuhammad Asim NagiAdnan Ahmad ChaudhryAsif JabbarMuhammad Salim Iqbal
AUDITORSM/S KPMG Taseer Hadi & CompanyChartered Accountants351, Shadman - 1,Main Jail Road,Lahore-54000, Pakistan
SHARIAH ADVISORMusti Muhammad Hassan Kaleem
SHARES REGISTRARCentral Depository Company Pakistan LimitedCDC House, 99-B, Block B, S.M.C.H.S.,Main Shahrah-e-Faisal, Karachi – 74400.Ph: (92-21) 111-111-500Fax: (92-21) 34326031
BANKERSAbu Dhabi Commercial BankAskari Bank LimitedBank Alfalah LimitedBank Al-Habib LimitedDubai Islamic Bank Pakistan LimitedEmirates Islamic BankFINCA Microfinance Bank LimitedHabib Bank LimitedHabib Metropolitan Bank LimitedKhushali Bank LimitedMCB Bank LimitedMCB Islamic Bank LimitedMeezan Bank LimitedMobilink Microfinance Bank LimitedNational Bank of PakistanSamba Bank LimitedSoneri Bank LimitedThe Punjab Provincial Cooperative Bank LimitedUnited Bank LimitedZarai Taraqiati Bank Limited
REGISTERED OFFICE4th Floor, 27-C-III, Tanveer Building, M M AlamRoad, Gulberg –III, Lahore -54000, PakistanPh: (92-42) 35772960-79 , Fax: (92-42) 35772868Email: [email protected],Web: www.adamjeeinsurance.com
8 FIRST QUARTER REPORT
Directors’ Report to the Members on UnconsolidatedCondensed Interim Financial InformationFor the Quarter Ended 31 March 2018
31 March 2018
Rupees in thousand
(Unaudited)
31 March 2017
On behalf of the Board, we are pleased to present the unconsolidated condensed interim financial information of the Company for the first quarter ended 31 March 2018.
Financial Highlights
The highlights for the period under review are as follows:
Performance Review
The Gross Premium of the Company decreased by 21% while the Net Premium increased by 8.3%. Overall underwriting results have improved by 34% over the corresponding period of last year with Motor line of business leading the underwriting performance with an underwriting profit of Rs. 272,741 thousands. The profit before tax and profit after tax have decreased by 2.2 % and 2.6 % respectively due to decrease in investment income in the current period.
Window Takaful Operations
The written contribution and deficit of Participants’ Takaful Fund amounted to Rs. 262,412 thousands (2017: Rs. 248,055 thousands) and Rs. 5,616 (2017: Rs. 6,439 thousands), respectively. Most of the growth in contribution written came from the Motor and Health line of business which contributed 63% and 18%, respectively to the total contribution written in this quarter. Window Takaful Operations profit before tax increased by 33% amounting to Rs. 19,810 thousands for the period ended 31 March 2018 (2017: Rs. 14,880 thousands).
Future Outlook
Pakistan’s economy witnessed a GDP growth of 5.28% during the year 2017 and the insurance sector grew at an average annual rate of around 13% on compound basis . Considering the steady growth and increased insurance penetration in the past in the last five yearsfive years, it can be inferred that the sector has been performing healthier.
We see a stable and positive regulatory regime going forward to enable the insurance industry to grow faster and increase its penetration across the country. Continued growth is expected in all lines of business in the insurance industry. Also, in view of the opportunities created through CPEC, the Company sees a favorable growth environment in the foreseeable future and is well positioned to tap into these opportunities.
Acknowledgements
We thank our shareholders, valued customers, employees and development staff for their consistent support that has helped Adamjee Insurance emerge as one of Pakistan’s leading insurance company. We are also grateful to the Insurance Division, the Securities and Exchange Commission of Pakistan for their continued guidance and assistance.
Gross Premium Written 3,694,166 4,678,638Net Premium Revenue 3,147,195 2,906,192Underwriting results 571,013 426,027Investment Income 532,928 675,848Profit before tax 950,914 973,086Profit after tax 663,399 681,160 Earnings per share (Rupees) 1.90 1.95
(Unaudited)
On Behalf of Board of Directors
Lahore: 23 April 2018 Managing Director &
Muhammad Ali Zeb
Chief Executive OfficerDirector
Muhammad Umar Virk
9ADAMJEE INSURANCE
�رے31
10 FIRST QUARTER REPORT
11ADAMJEE INSURANCE
UNCONSOLIDATEDCondensed Interim
Financial Informationfor the Quarter Ended
31 March 2018(Unaudited)
Unconsolidated Condensed Interim Balance Sheet As at 31 March 2018
Restated
EQUITY AND LIABILITIES
Share capital and reserves attributable to Company's equity holders
Authorized share capital
375,000,000 (2017: 375,000,000) ordinary shares of Rs. 10 each 3,750,000 3,750,000
Issued, subscribed and paid up capital 3,500,000 3,500,000
Reserves 18 7,509,689 6,473,977
Unappropriated Profit 11,863,964
Total Equity 23,537,052 21,837,941
Liabilities
Underwriting provisions
Outstanding claims including IBNR 11,426,866 11,485,744
Unearned premium reserves 8,136,283 8,912,498
Premium deficiency reserves - -
Unearned reinsurance commission 195,862 240,306
Retirement benefit obligation 165,556 154,396
Deferred taxation 36,917 37,302
Premium received in advance 405,758 316,692
Insurance / reinsurance payables 1,488,327 1,668,516
Other creditors and accruals 2,295,196 2,307,394
Taxation - provision less payments 175,381 -
Accrued expenses 60,304 122,578
Unclaimed dividends 105,577 106,214
24,492,027 25,351,640
Total liabilities of Window Takaful Operations - Operator's Fund 17 174,947 141,312
Contingencies and commitments 19
48,204,026 47,330,893
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
31 March 2018Note
Rupees in thousand
(Unaudited) (Audited)
31 December 2017
12,527,363
12 FIRST QUARTER REPORT
13ADAMJEE INSURANCE
ASSETS
Property and equipment 8 2,689,048 2,585,278
Intangible assets 9 31,335 34,242
Investment in Subsidiary 10 990,133 990,133
Investments
Equity securities 11 21,323,933 20,230,227
Debt securities 12 726,014 441,832
Loans and other receivables 13 861,813 365,758
Insurance / reinsurance receivables 14 6,037,101 6,770,967
Reinsurance recoveries against outstanding claims 7,537,938 7,709,161
Salvage recoveries accrued 379,178 347,289
Deferred commission expense / Acquisition cost 614,722 733,631
Taxation - payments less provision - 82,087
Prepayments 15 1,900,835 2,499,931
Cash and bank 16 4,822,976 4,299,108
47,915,026 47,089,644
Total assets of Window Takaful Operations - Operator's Fund 17 289,000 241,249
48,204,026 47,330,893
Restated
31 March 2018Note
Rupees in thousand
(Unaudited) (Audited)
31 December 2017
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
Unconsolidated Condensed Interim Profit and Loss Account (Unaudited)For the Quarter Ended 31 March 2018
Revenue account
Net Insurance Premium 20 2,906,192
Net Insurance Claims 21 (1,811,177) (1,810,741)
Premium deficiency - -
Net Commission and other acquisition costs 22 (279,147) (248,543)
Insurance claims and acquisition expenses (2,090,324) (2,059,284)
Management expenses (485,858) (420,881)
Underwriting results 426,027
Investment income 23 532,928 675,848
Rental income 2,515 1,613
Other income 32,570 33,682
Other expenses (190,212) (159,347)
Results of operating activities 977,823
Exchange gain 1,696 245
Profit from window takaful operations 17 14,880
Workers' welfare fund (19,406) (19,862)
Profit before tax 973,086
Income tax expense (291,926)
Profit aster tax 681,160
Balance at the commencement of the period 11,863,964 12,093,769
Profit aster tax for the period 681,160
Balance unappropriated profit at the end of period 12,774,929
Earnings per share - basic and diluted 24 1.95
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
Quarter ended
31 March 2018
Note
Rupees in thousand
Quarter ended
31 March 2017
3,147,195
948,814
19,810
950,914
(287,515)
663,399
663,399
12,527,363
1.90
571,013
Rupees
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
14 FIRST QUARTER REPORT
15ADAMJEE INSURANCE
Unconsolidated Condensed Interim Profit and Loss Account (Unaudited)For the Quarter Ended 31 March 2018
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
Revenue account
Net Insurance Premium 1,642,191
Net Insurance Claims (863,946) (844,330)
Premium deficiency - -
Net Commission and other acquisition costs (97,795) (93,076)
Insurance claims and acquisition expenses (961,741) (937,406)
Management expenses (361,013) (329,558)
Underwriting results 375,227
Investment income 532,928 616,304
Rental income 2,515 -
Other income 14,044 32,096
Other expenses (131,785) (120,590)
Results of operating activities 903,037
Exchange gain 1,696 245
Profit from window takaful operations 14,880
Workers' welfare fund (19,406) (19,862)
Profit before tax 898,300
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
Business Underwritten Inside Pakistan
1,757,600
434,846
852,548
854,648
19,180
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
16 FIRST QUARTER REPORT
Unconsolidated Condensed Interim Profit and Loss Account (Unaudited)For the Quarter Ended 31 March 2018
Business Underwritten Outside Pakistan
Revenue account
Net Insurance Premium 1,264,001
Net Insurance Claims (947,231) (966,411)
Premium deficiency - -
Net Commission and other acquisition costs (181,352) (155,467)
Insurance claims and acquisition expenses (1,128,583) (1,121,878)
Management expenses (124,845) (91,323)
Underwriting results 50,800
Investment income - 59,544
Rental income - 1,613
Other income 18,526 1,586
Other expenses (58,427) (38,757)
Results of operating activities 74,786
Exchange gain - -
Workers' welfare fund - -
Profit before tax 74,786
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
1,389,595
136,167
96,266
96,266
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
17ADAMJEE INSURANCE
Unconsolidated Condensed Interim Statement of Comprehensive Income (Unaudited)For the Quarter Ended 31 March 2018
Profit aster tax for the period 681,160 663,399
Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
Unrealized gains on 'available-for-sale' investments 13,401 1,012,560
Other comprehensive income from window takaful operations 759 470
Effect of translation of investment in foreign branches - net 22,393 440
Total comprehensive income for the period 695,471 1,699,111
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
Restated
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
Unconsolidated Condensed Interim Cash Flow Statement (Unaudited)For the Quarter Ended 31 March 2018
Cash flows from operating activities
Underwriting activities
Premiums received 4,637,931 4,521,055
Reinsurance premiums paid (1,058,108) (898,848)
Claims paid (2,807,430) (2,107,421)
Surrenders paid (14,790) (7,265)
Reinsurance and other recoveries received 882,803 412,523
Commissions paid (394,854) (374,512)
Commissions received 90,331 135,676
Other underwriting payments (245,159) (274,637)
Net cash generated from underwriting activities 1,090,724 1,406,571
Other operating activities
Income tax paid (23,979) (16,896)
General and management expenses paid (288,720) (290,284)
Loans disbursed (10,868) (12,378)
Loans repayments received 12,556 11,451
Other receipts 6,868 1,558
Net cash used in other operating activities (304,143) (306,549)
Total cash generated from all operating activities 786,581 1,100,022
Cash flows from investing activities
Profit / return received on bank deposits 15,352 28,179
Return on Pakistan investment bonds - 13,531
Income received from TFCs - -
Income from treasury bills 11,116 2,859
Dividends received 130,542 91,032
Rentals received 768 1,613
Payments for investments (968,882) (1,402,925)
Proceeds from disposal of investments 744,873 504,400
Fixed capital expenditure - tangible assets (128,120) (68,429)
Fixed capital expenditure - intangible assets (185) (1,656)
Proceeds from disposal of operating fixed assets 2,460 10,924
Total cash used in investing activities (192,076) (820,472)
Cash flows from financing activities
Dividends paid (637) (269)
Net cash used in financing activities (637) (269)
Net cash generated from all activities 593,868 279,281
Cash at the beginning of the period 4,192,858 4,300,905
Cash at the end of the period 4,786,726 4,580,186
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
18 FIRST QUARTER REPORT
19ADAMJEE INSURANCE
Unconsolidated Condensed Interim Cash Flow Statement (Unaudited)For the Quarter Ended 31 March 2018
Reconciliation to profit and loss account
Operating cash flows 786,581 1,100,022
Depreciation expense (30,608) (28,144)
Provision for gratuity (11,160) (1,205)
Other income - bank deposits 26,391 27,642
Gain on disposal of operating fixed assets 1,011 4,727
Rental income 2,515 1,613
(Decrease) / increase in assets other than cash (1,307,553) 649,817
Decrease / (increase) in liabilities other than running finance 136,449 (1,212,766)
Profit on sale of investments 104,215 168,175
Amortization expense (3,956) (5,170)
Decrease / (Increase) in unearned premium 776,215 (270,147)
Amortization of income on Government Securities - net - -
Decrease in loans (1,688) (927)
Income taxes paid 23,979 16,896
Reversal / (provision) for impairment in value of 'available-for-sale' investments 37,012 -
Dividend and other income 383,523 498,052
Income from treasury bills 6,827 2,350
Return on Pakistan investment bonds - 5,846
Income from TFCs 1,351 1,425
Profit from Window Takaful Operations 14,880
973,086
Definition of cash
Cash for the purposes of the statement of cash flows consists of:
Cash and other equivalents 8,111 7,081
Current and other accounts 2,511,525 4,083,199
Deposits maturing within 12 months 2,267,090 489,906
Total cash and cash equivalents 4,786,726 4,580,186
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
Cash comprises cash in hand, bank balances excluding Rs. 36,250 thousands (2017: Rs 106,250 thousands) held under lien, and other deposits which are readily convertible to cash and which are used in the cash management function on a day-to-day basis.
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
Profit before tax 950,914
19,810
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
20 FIRST QUARTER REPORT
Unconsolidated Condensed Interim Cash Flow Statement (Unaudited)For the Quarter Ended 31 March 2018
Cash flows from operating activities
Underwriting activities
Premiums received 3,215,128 2,786,052
Reinsurance premiums paid (995,837) (814,542)
Claims paid (1,632,181) (863,531)
Surrenders paid (14,790) (7,265)
Reinsurance and other recoveries received 531,144 23,891
Commissions paid (176,736) (214,828)
Commissions received 87,816 116,152
Other underwriting payments (145,513) (225,745)
Net cash generated from underwriting activities 869,031 800,184
Other operating activities
Income tax paid (23,979) (16,896)
General and management expenses paid (211,270) (224,777)
Loans disbursed (7,090) (10,489)
Loans repayments received 9,457 9,313
Other receipts 6,872 1,558
Net cash used in other operating activities (226,010) (241,291)
Total cash generated from all operating activities 643,021 558,893
Cash flows from investing activities
Profit / return received on bank deposits 7,866 26,594
Return on Pakistan investment bonds - 13,531
Income received from TFCs - -
Income from treasury bills 11,116 2,859
Dividends received 130,542 91,032
Rentals received 768 -
Payments for investments (968,882) (1,402,925)
Proceeds from disposal of investments 744,873 504,400
Fixed capital expenditure - tangible assets (117,708) (67,267)
Fixed capital expenditure - intangible assets (185) (1,656)
Proceeds from disposal of operating fixed assets 2,299 10,924
Total cash used in investing activities (189,311) (822,508)
Cash flows from financing activities
Dividends paid (637) (269)
Net cash used in financing activities (637) (269)
Net cash generated from / (used in) all activities 453,073 (263,884)
Cash at the beginning of the period 1,107,943 2,597,822
Cash at the end of the period 1,561,016 2,333,938
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
Business Underwritten Inside Pakistan
21ADAMJEE INSURANCE
Unconsolidated Condensed Interim Cash Flow Statement (Unaudited)For the Quarter Ended 31 March 2018
Reconciliation to profit and loss account
Operating cash flows 643,021 558,893
Depreciation expense (25,346) (23,411)
Provision for gratuity (5,213) (4,120)
Other income - bank deposits 7,866 26,056
Gain on disposal of operating fixed assets 1,369 4,727
Rental income 2,515 -
(Decrease) / increase in assets other than cash (1,456,589) 297,935
Decrease / (increase) in liabilities other than running finance 668,680 (678,894)
Profit on sale of investments 104,215 117,149
Amortization expense (2,390) (3,073)
Decrease in unearned premium 446,385 72,785
Amortization of income on Government Securities - net - -
Increase in loans (2,367) (678)
Income taxes paid 23,979 16,896
Reversal / (provision) for impairment in value of 'available-for-sale' investments 37,012 -
Dividend and other income 383,523 489,534
Income from treasury bills 6,827 2,350
Return on Pakistan investment bonds - 5,846
Income from TFCs 1,351 1,425
Profit from Window Takaful Operations 19,810 14,880
898,300
Definition of cash
Cash for the purposes of the statement of cash flows consists of:
Cash and other equivalents 8,086 2,569
Current and other accounts 1,552,195 2,330,634
Deposits maturing within 12 months 735 735
Total cash and cash equivalents 1,561,016 2,333,938
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
Cash comprises cash in hand, bank balances excluding Rs. 36,250 (2017: Rs 106,250) held under lien, and other deposits which are readily convertible to cash and which are used in the cash management function on a day-to-day basis.
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
Profit before tax 854,648
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
22 FIRST QUARTER REPORT
Unconsolidated Condensed Interim Cash Flow Statement (Unaudited)For the Quarter Ended 31 March 2018
Cash flows from operating activities
Underwriting activities
Premiums received 1,422,803 1,735,003
Reinsurance premiums paid (62,271) (84,306)
Claims paid (1,175,249) (1,243,890)
Surrenders paid - -
Reinsurance and other recoveries received 351,659 388,632
Commissions paid (218,118) (159,684)
Commissions received 2,515 19,524
Other underwriting payments (99,646) (48,892)
Net cash generated from underwriting activities 221,693 606,387
Other operating activities
Income tax paid - -
General and management expenses paid (77,450) (65,507)
Loans disbursed (3,778) (1,889)
Loans repayments received 3,099 2,138
Other receipts (4) -
Net cash used in other operating activities (78,133) (65,258)
Total cash generated from all operating activities 143,560 541,129
Cash flows from investing activities
Profit / return received on bank deposits 7,486 1,585
Return on Pakistan investment bonds - -
Income received from TFCs - -
Income from treasury bills - -
Dividends received - -
Rentals received - 1,613
Payments for investments - -
Proceeds from disposal of investments - -
Fixed capital expenditure - tangible assets (10,412) (1,162)
Fixed capital expenditure - intangible assets - -
Proceeds from disposal of operating fixed assets 161 -
Total cash (used in) / generated from investing activities (2,765) 2,036
Cash flows from financing activities
Dividends paid - -
Net cash generated from / (used in) financing activities - -
Net cash generated from all activities 140,795 543,165
Cash at the beginning of the period 3,084,915 1,703,083
Cash at the end of the period 3,225,710 2,246,248
Business Underwritten Outside Pakistan
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
23ADAMJEE INSURANCE
Unconsolidated Condensed Interim Cash Flow Statement (Unaudited)For the Quarter Ended 31 March 2018
Reconciliation to profit and loss account
Operating cash flows 143,560 541,129
Depreciation expense (5,262) (4,733)
Provision for gratuity (5,947) 2,915
Other income - bank deposits 18,525 1,586
Gain on disposal of operating fixed assets (358) -
Rental income - 1,613
Increase in assets other than cash 149,036 351,882
Increase in liabilities other than running finance (532,231) (533,872)
Profit on sale of investments - 51,026
Amortization expense (1,566) (2,097)
Decrease / (Increase) in unearned premium 329,830 (342,932)
Amortization of income on Government Securities - net - -
Increase/(decrease) in loans 679 (249)
Income taxes paid - -
Reversal / (provision) for impairment in value of 'available-for-sale' investments - -
Dividend and other income - 8,518
Income from treasury bills - -
Return on Pakistan investment bonds - -
Income from TFCs - -
Profit from Window Takaful Operations - -
74,786
Definition of cash
Cash for the purposes of the statement of cash flows consists of:
Cash and other equivalents 25 4,512
Current and other accounts 959,330 1,752,565
Deposits maturing within 12 months 2,266,355 489,171
Total cash and cash equivalents 3,225,710 2,246,248
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
Cash comprises cash in hand, bank balances excluding Rs. Nil (2017: Rs Nil) held under lien, and other deposits which are readily convertible to cash and which are used in the cash management function on a day-to-day basis.
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
96,266 Profit before tax
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
Unconsolidated Condensed Interim Statement of Changes in Equity (Unaudited)For the Quarter Ended 31 March 2018
Balance as at 31 December 2016 - (Audited) 3,500,000 22,859 3,764 443,711 936,500 - 12,093,769 17,000,603
Effect of restatement as disclosed in note 4.1.2.1 - - - - - 7,223,371 - 7,223,371
Balance as at 31 December 2016 - (Audited) restated 3,500,000 22,859 3,764 443,711 936,500 7,223,371 12,093,769 24,223,974
Profit for the period 01 January 2017 to 31 March 2017 - - - - - - 681,160 681,160
Other comprehensive income for the
period 01 January 2017 to 31 March 2017 - - - 440 - 13,871 - 14,311
Total comprehensive income for the period - - - 440 - 13,871 681,160 695,471
Balance as at 31 March 2017 - (Unaudited) - restated 3,500,000 22,859 3,764 444,151 936,500 7,237,242 12,774,929 24,919,445
Profit for the period 01 April 2017 to 31 December 2017 - - - - - - 540,068 540,068
Other comprehensive income for the
period 01 April 2017 to 31 December 2017 - - - 22,949 - (2,193,488) (51,033) (2,221,572)
Total comprehensive income for the period - - - 22,949 - (2,193,488) 489,035 (1,681,504)
3,500,000 22,859 3,764 467,100 936,500 5,043,754 13,263,964 23,237,941
Final dividend for the year ended 31 December 2016
@ 25% (Rupee 2.5/- per share) - - - - - - (875,000) (875,000)
Interim dividend for the period ended 30 June 2017
@ 15% (Rupees 1.5/- per share) - - - - - - (525,000) (525,000)
- - - - - - (1,400,000) (1,400,000)
Balance as at 31 December 2017 - (Audited) - restated 3,500,000 22,859 3,764 467,100 936,500 5,043,754 11,863,964 21,837,941
Profit for the period 01 January 2018 to 31 March 2018 - - - - - -
Other comprehensive income for the
period 01 January 2018 to 31 March 2018 - - - - -
Total comprehensive income for the period - - - -
Balance as at 31 March 2018 - (Unaudited) 3,500,000 22,859 3,764 489,493 936,500 6,057,073 12,527,363 23,537,052
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
Share capital Capital reserves Revenue reserves
TotalIssued,
subscribed
and paid up
Reserve for
exceptional
losses
Investment
fluctuation
reserve
Exchange
translation
reserve
General
reserve
Fair Value Reserve
Rupees in thousand
Unappropriated Profit
663,399
1,035,712
1,699,111 663,399 1,013,319
1,013,319
22,393
22,393
663,399
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
24 FIRST QUARTER REPORT
25ADAMJEE INSURANCE
1 Legal status and nature of business
Adamjee Insurance Company Limited ("the Company") is a public limited company incorporated in Pakistan on 28 September 1960 under the Companies Act, 1913 (now the Companies Act, 2017). The Company is listed on Pakistan Stock Exchange and is engaged in the general insurance business comprising fire & property, marine, motor, accident and health and miscellaneous. The registered office of the Company is situated at Tanveer Building, 27-C-III, MM Alam Road, Gulberg III, Lahore.
The Company also operates branches in the United Arab Emirates (UAE) and the Export Processing Zone (EPZ).
The Company was granted authorization on 23 December 2015 under Rule 6 of the Takaful Rules, 2012 to undertake Takaful Window Operations in respect of general takaful products by Securities and Exchange Commission of Pakistan (SECP) and commenced Window Takaful Operations on 01January 2016.
2 Basis of preparation
The unconsolidated condensed interim financial information has been prepared in accordance with the requirements of the International Accounting Standard (IAS) 34 - 'Interim Financial Reporting' as applicable in Pakistan, provisions of and directives issued under Companies Act, 2017, the Insurance Ordinance, 2000, Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and Takaful Rules, 2012. In case where requirements differ, the provisions of or directives issued under the Companies Act, 2017, the Insurance Ordinance, 2000, Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and Takaful Rules, 2012 have been followed.
This unconsolidated condensed interim financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with annual financial statements of the Company for the year ended 31 December 2017.
3 Statement of Compliance
3.1 This unconsolidated condensed interim financial information has been prepared under the historical cost convention except that certain investments are carried at fair value and the obligations under certain employee benefits that are measured at present value. Accrual basis of accounting has been used except for cash flow information.
3.2 The Companies Act, 2017 (“the Act”) was enacted on 30 May 2017 and replaced and repealed the Companies Ordinance, 1984 (‘the repealed Ordinance’) with its application from January 01,2018. Accordingly, this unconsolidated condensed interim financial information has been prepared in accordance with the provision of the Companies Act, 2017.
3.3 Securities and Exchange Commission of Pakistan (“SECP”) vide S.R.O 88(1)/2017 and S.R.O 89(1)/2017 dated 9 February 2017 has issued the Insurance Accounting Regulations, 2017 and Insurance Rules, 2017 (the new Rules and Regulations). The application of these Regulations and Rules for the purpose of preparation and presentation of the financial statements was effective from 1 April 2017.
However, SECP vide letter ID/OSM/Adamjee/2017/12269 dated 11 October 2017 has allowed the Company for the application of new Regulations effective from 1 January 2018. Consequently, the Company has changed its accounting policies in respect of presentation of financial statements and ‘available-for-sale’ investments as explained in note 4.1 of this unconsolidated condensed interim financial information.
4 Summary of significant accounting policies
The accounting policies and methods of computation adopted in the preparation of this unconsolidated condensed interim financial information are the same as those applied in the preparation of the unconsolidated financial statements of the Company for the year ended 31 December 2017 except for changes in accounting policies in note 4.1 of this unconsolidated condensed interim financial information.
The Company has adopted all the applicable new standards and amendments to standards, including any consequential amendments to other standards, with a date of initial application of 01 January 2018, as mentioned in the financial statements for the year ended 31 December 2017.
There is no significant impact of such changes on this unconsolidated condensed interim financial information of the Company.
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
4.1 Changes in accounting policies
4.1.1 Presentation and disclosure of financial statements
As per Insurance Rules, 2017, the presentation and disclosure requirements of the financial statements have changed under the format prescribed in Annexure II of the said Rules. Accordingly, change in presentation and disclosures of this unconsolidated condensed interim financial information has been applied retrospectively.
4.1.2 Investments
Financial assets were previously measured as per the provisions of repealed SEC (Insurance) Rules, 2002. Starting from financial year 2018, Financial Assets fall in the scope of IAS 39 “Financial Instruments - Recognition and Measurement”, and are classified as loans and receivables, held-to-maturity investments or available-for-sale financial assets, as appropriate. Financial assets are initially measured at cost, which is the fair value of consideration given and received respectively. These financial assets are subsequently measured at fair value or cost as the case may be. The Company determines the classification of its financial assets after initial recognition and, where allowed and appropriate, re-evaluates this designation at each financial year end.
4.1.2.1 Basis for measurement of available-for-sale investments
Under the repealed SEC (Insurance) Rules, 2002, the Company previously recorded its ‘available-for-sale’ investments at cost and remeasured them at lower of cost or market value. The Insurance Rules, 2017 require the initial measurement of ‘available-for-sale’ investments at cost with the subsequent remeasurement at fair value at each reporting date. The unrealized gains and losses arising from changes in fair values are directly recognized in equity in the period in which these arise until the investments are sold or determined to be impaired. The said change in accounting policy has been made in accordance with the requirements of IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors".
Consequent to this change, investments as at December 31, 2017 have been increased by Rs. 5,043,626 thousands with a corresponding increase in fair value reserve in equity amounting to Rs. 5,043,626 thousands relating to conventional business and Rs. 7 thousands relating to Window Takaful Operations. Furthermore, fair value reserve as at December 31, 2016 has increased by Rs. 7,223,250 thousands relating to conventional business and Rs. 121 thousands relating to Window Takaful Operations. There is no impact of this change on earnings per share of the Company in preceding years.
4.1.2.2 Basis for measurement of held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity when the Company has the positive intention and ability to hold to maturity and are initially measured at cost. These are subsequently measured at amortized cost. Investments intended to be held for an undefined period are not included in this classification.
Previously, fixed income securities, such as Fixed Deposits and Treasury Bills, redeemable at a given date were classified under the category ‘Available-for-sale securities as per the repealed SEC (Insurance) Rules, 2002. From the financial year ’starting from January 01, 2018, fixed income securities fall in the scope of IAS 39 and are now re-classified under the category ‘Held-to-maturity’ investments.
The re-classification does not affect the recognition and measurement criteria and such securities are continued to be measured on amortized cost i.e. where the cost was different from the redemption value, such difference is amortized uniformly over the period between the acquisition date and the date of maturity in determining ‘cost’ at which these investments are stated.
4.1.3 Premium revenue
The Insurance Accounting Regulations, 2017 remodel the recognition criteria for the premium written under an Insurance Policy. The said regulations require the Company to recognize premium receivable under an Insurance policy / cover note as written from the date of attachment of risk to the policy / cover note. Accordingly, the Company is required to account for cover notes which are effective as at balance sheet date.
As per repealed SEC (Insurance) Rules, 2002, the premium was written under an insurance policy at the time of its issuance. The change is considered to be a change in accounting policy in accordance with IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”. The impact of the same is not considered to be material to the financial information and accordingly not included in the comparative restated financial information.
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
26 FIRST QUARTER REPORT
27ADAMJEE INSURANCE
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
5 Use of estimates and judgments
The preparation of this unconsolidated condensed interim financial information in conformity with the approved accounting standards requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the process of applying the Company's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
During preparation of this unconsolidated condensed interim financial information, the significant judgments made by the management in applying the Company's accounting policies and the key sources of estimation and uncertainty were the same as those that applied in the preceding audited annual published financial statements of the Company for the year ended 31 December 2017.
6 Functional and presentation currency
This unconsolidated condensed interim financial information is presented in Pakistani Rupees, which is also the Company’s functional currency.
7 Financial risk management
The Company's financial risk management objectives and policies are consistent with those disclosed in the financial statements for the year ended 31 December 2017.
8 Property and equipment
Opening balance - net book value 2,132,353 1,077,862
Additions during the period 17,911 1,176,961
Less:
Book value of disposals during the period (1,449) (11,958)
Depreciation / amortization charged during the period (30,608) (120,002)
Exchange difference 7,707 9,490
(24,350) (122,470)
2,125,914 2,132,353
Capital work in progress 563,134 452,925
2,689,048 2,585,278
8.1 Additions during the period
Land and buildings - 1,040,575
Furniture and fixtures 2,175 26,004
Motor vehicles 13,544 76,110
Machinery and equipments 1,003 14,173
Computer and related accessories 1,189 20,099
17,911 1,176,961
Written down values of property and equipment
disposed off during the period
Land and buildings - -
Furniture and fixtures - -
Motor vehicles 1,396 10,111
Machinery and equipments 53 1,847
Computer and related accessories - -
1,449 11,958
31 March 2018Note
Rupees in thousand
(Unaudited) (Audited)
31 December 2017
8.1
8.2
8.2
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
9 Intangible assets
Opening balance - net book value 34,242 49,687
Additions during the period 185 2,973
Less:
Book value of disposals during the period - -
Depreciation / amortization charged during the period (3,956) (19,665)
Exchange difference 864 1,247
(3,092) (18,418)
31,335 34,242
10 Investment in subsidiary
Cost 694,895 694,895
Unrealized gain 295,238 295,238
End of the period 990,133 990,133
31 March 2018
Rupees in thousand
(Unaudited) (Audited)
31 December 2017
(Unaudited) (Audited)
Rupees in thousand
31 December 2017
CostImpairment/
provisionCarrying value
31 March 2018
CostImpairment/
provisionCarrying value
11 Investment in equity securities
Available-for-sale
Related parties
Listed shares 7,962,628 - 7,962,628 7,819,534 - 7,819,534
Unrealized gain 2,565,918 2,197,985
10,528,546 10,017,519
Others
Listed shares 7,356,344 (1,098,083) 6,258,261 7,454,844 (1,135,095) 6,319,749
Unlisted shared 925,360 - 925,360 925,360 - 925,360
NIT Units 161 - 161 161 - 161
Mutual Funds 416,575 - 416,575 417,035 - 417,035
7,600,357 7,662,305
Unrealized gain 3,195,030 2,550,403
10,795,387 10,212,708
Total 21,323,933 20,230,227
Restated
31 March 2018
Rupees in thousand
(Unaudited) (Audited)
31 December 2017
Restated
28 FIRST QUARTER REPORT
29ADAMJEE INSURANCE
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
12 Investment in debt securities
Held-to-maturity
Others
Term Finance Certificate 12.1 70,948 70,948
Treasury Bills 655,066 370,884
726,014 441,832
12.1 Term Finance Certificate 75 75 1,000,000 70,948 70,948
70,948 70,948
Face value
31 March 2018Note
Rupees in thousand
(Unaudited) (Audited)
31 December 2017
31 March 2018
Rupees in thousand
31 December 2017
Rupees in thousand
31 March 2018 31 December 2017
No of certificates
13 Loans and other receivables
Considered good
Rent receivable 13,676 6,090
Accrued investment income 368,713 107,631
Security deposits 44,903 44,525
Advances 173,431 127,581
Agent commission receivable 20,147 20,547
Loans to employees 41,505 43,193
Other receivables 199,438 16,191
861,813 365,758
14 Insurance / reinsurance receivables - unsecured and considered good
Due from insurance contract holders 5,318,304 6,152,145
Less: Provision for impairment of receivables from
insurance contract holders (381,869) (375,801)
4,936,435 5,776,344
Due from other insurers / other reinsurers 1,251,968 1,145,925
Less: provision for impairment of due from other
insurers / reinsurers (151,302) (151,302)
1,100,666 994,623
6,037,101 6,770,967
15 Prepayments
Prepaid reinsurance premium ceded 1,759,176 2,349,147
Prepaid rent 13,571 19,663
Prepaid miscellaneous expenses 128,088 131,121
1,900,835 2,499,931
12 Investment in debt securities
Held-to-maturity
Others
Term Finance Certificate 12.1 70,948 70,948
Treasury Bills 655,066 370,884
726,014 441,832
12.1 Term Finance Certificate 75 75 1,000,000 70,948 70,948
70,948 70,948
31 March 2018
Rupees in thousand
(Unaudited) (Audited)
31 December 2017
31 March 2018
Rupees in thousand
31 December 2017
Value of Certificates
31 March 2018 31 December 2017
No of certificates
31 March 2018
Rupees in thousand
(Unaudited) (Audited)
31 December 2017
Face value
Note
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
16 Cash and Bank
Cash and cash equivalents
Cash in hand 548 387
Policy & revenue stamps, bond papers 7,563 7,289
8,111 7,676
Cash at bank
Current accounts 1,739,623 1,478,477
Saving accounts 16.1 771,901 792,461
2,511,524 2,270,938
Deposits maturing within 12 months
Fixed and term deposits 16.1 2,303,341 2,020,494
4,822,976 4,299,108
Restated
17 Window takaful operations - operator's fund
Assets
Qard-e-Hasna 117,000 117,000
Cash and bank deposits 7,676 41,119
Investments 31,268 30,343
Current assets - others 111,196 30,605
Fixed assets 21,860 22,182
Total Assets 289,000 241,249
Total liabilities - current 174,947 141,312
31 March 2018Note
Rupees in thousand
(Unaudited) (Audited)
31 December 2017
31 March 2018
Rupees in thousand
(Unaudited) (Audited)
31 December 2017
16.1 These include fixed deposits amounting to Rs. 217,983 thousands (AED 6,951 thousands) [2017: Rs. 208,736 thousands (AED 6,951 thousands)] kept in accordance with the requirements of Insurance Regulations applicable to the UAE branches for the purpose of carrying on business in United Arab Emirates. These also include liens against cash deposits of Rs. 36,250 thousands (2017: Rs. 106,250 thousands) with banks in Pakistan essentially in respect of guarantees issued by the banks on behalf of the Company for claims under litigation filed against the Company.
Wakala Fee 28,923
Commission expense (13,056) (5,748)
Management expense (21,051) (8,437)
Net Investment income 1,055 142
Profit from Window Takaful Operations 14,880
31 March 2018
Rupees in thousand
(Unaudited)
31 March 2017
Details of total assets, total liabilities and segment disclosure of window takaful operations are stated in the annexed condensed interim financial information for the quarter ended 31 March 2018.
(Unaudited)
52,862
19,810
30 FIRST QUARTER REPORT
31ADAMJEE INSURANCE
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
Restated18 Reserves
Capital reserves
Reserves for exceptional losses 22,859 22,859
Investment fluctuation reserves 3,764 3,764
Exchange translation reserves 489,493 467,100
516,116 493,723
Revenue reserves
General reserves 936,500 936,500
Fair value reserve 6,057,073 5,043,754
6,993,573 5,980,254
7,509,689 6,473,977
31 March 2018
Rupees in thousand
(Unaudited) (Audited)
31 December 2017
19 Contingencies and commitments
Contingencies
There has been no significant change in the contingencies since the date of preceding published annual financial statements.
Commitments
The Company has issued letter of guarantees amounting to Rs. 6,869 thousands (AED 219,000) [2017: 24,992 thousands(AED 832,250)] relating to its UAE branch.
(Unaudited) (Unaudited)
20 Net Insurance Premium
Written Gross Premium 3,694,166 4,678,638
Add: Unearned premium reserve opening 8,912,498 7,349,511
Less: Unearned premium reserve closing 8,136,283 7,619,658
Add: Currency translation effect 149,516 1,220
Premium earned 4,619,897 4,409,711
Less: Reinsurance premium ceded 877,919 1,322,707
Add: Prepaid reinsurance premium opening 2,349,147 2,356,182
Less: Prepaid reinsurance premium closing 1,759,176 2,175,511
Add: Currency translation effect 4,812 141
Reinsurance expense 1,472,702 1,503,519
3,147,195 2,906,192
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
32 FIRST QUARTER REPORT
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
20.1 Net Insurance Premium - Business underwritten inside Pakistan
Written Gross Premium 2,506,526 2,830,321
Add: Unearned premium reserve opening 5,186,518 4,515,372
Less: Unearned premium reserve closing 4,740,133 4,442,587
Premium earned 2,952,911 2,903,106
Less: Reinsurance premium ceded 820,460 1,104,584
Add: Prepaid reinsurance premium opening 2,079,920 1,922,263
Less: Prepaid reinsurance premium closing 1,705,069 1,765,932
Reinsurance expense 1,195,311 1,260,915
1,757,600 1,642,191
20.2 Net Insurance Premium - Business underwritten outside Pakistan
Written Gross Premium 1,187,640 1,848,317
Add: Unearned premium reserve opening 3,725,980 2,834,139
Less: Unearned premium reserve closing 3,396,150 3,177,071
Add: Currency translation effect 149,516 1,220
Premium earned 1,666,986 1,506,605
Less: Reinsurance premium ceded 57,459 218,123
Add: Prepaid reinsurance premium opening 269,227 433,919
Less: Prepaid reinsurance premium closing 54,107 409,579
Add: Currency translation effect 4,812 141
Reinsurance expense 277,391 242,604
1,389,595 1,264,001
(Unaudited) (Unaudited)
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
21 Net Insurance Claims Expense
Claims Paid 2,807,430 2,107,421
Add: Outstanding claims including IBNR closing 11,426,866 10,024,986
Less: Outstanding claims including IBNR opening 11,485,744 9,475,718
Less: Currency translation effect 201,209 1,593
Claims expense 2,547,343 2,655,096
Less: Reinsurance and other recoveries received 988,846 510,294
Add: Reinsurance and other recoveries in respect
of outstanding claims net of impairment (if any) closing 7,917,116 6,950,610
Less: Reinsurance and other recoveries in respect
of outstanding claims net of impairment (if any) opening 8,056,450 6,615,596
Less: Currency translation effect 113,346 953
Reinsurance and other recoveries revenue 736,166 844,355
1,811,177 1,810,741
33ADAMJEE INSURANCE
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
(Unaudited) (Unaudited)
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
21.1 Net Insurance Claims Expense - Business underwritten inside Pakistan
Claims Paid 1,430,972 863,531
Add: Outstanding claims including IBNR closing 6,630,290 5,623,831
Less: Outstanding claims including IBNR opening 7,084,282 5,480,119
Claims expense 976,980 1,007,243
Less: Reinsurance and other recoveries received 510,256 65,399
Add: Reinsurance and other recoveries in respect
of outstanding claims net of impairment (if any) closing 5,205,590 4,318,051
Less: Reinsurance and other recoveries in respect
of outstanding claims net of impairment (if any) opening 5,602,812 4,220,537
Reinsurance and other recoveries revenue 113,034 162,913
863,946 844,330
21.2 Net Insurance Claims Expense - Business underwritten outside Pakistan
Claims Paid 1,376,458 1,243,890
Add: Outstanding claims including IBNR closing 4,796,576 4,401,155
Less: Outstanding claims including IBNR opening 4,401,462 3,995,599
Less: Currency translation effect 201,209 1,593
Claims expense 1,570,363 1,647,853
Less: Reinsurance and other recoveries received 478,590 444,895
Add: Reinsurance and other recoveries in respect
of outstanding claims net of impairment (if any) closing 2,711,526 2,632,559
Less: Reinsurance and other recoveries in respect
of outstanding claims net of impairment (if any) opening 2,453,638 2,395,059
Less: Currency translation effect 113,346 953
Reinsurance and other recoveries revenue 623,132 681,442
947,231 966,411
22 Net Commission Expense / Acquisition Cost
Commission Paid or payable 279,397 437,797
Add: Deferred Commission expense opening 733,631 737,281
Less: Deferred Commission expense closing 614,722 777,693
Add: Currency translation effect 15,987 135
Net Commission 414,293 397,520
Less: Commission received or recoverable 90,331 135,673
Add: unearned reinsurance commission 240,306 236,881
Less: unearned reinsurance commission 195,862 223,588
Add: Currency translation effect 371 11
135,146 148,977
279,147 248,543
34 FIRST QUARTER REPORT
22.1 Net Commission Expense / Acquisition Cost - Business underwritten
Inside Pakistan
Commission Paid or payable 153,513 224,303
Add: Deferred Commission expense opening 326,325 398,331
Less: Deferred Commission expense closing 254,852 403,118
Net Commission 224,986 219,516
Less: Commission received or recoverable 88,185 116,150
Add: unearned reinsurance commission 227,726 202,685
Less: unearned reinsurance commission 188,720 192,395
127,191 126,440
97,795 93,076
22.2 Net Commission Expense / Acquisition Cost - Business underwritten
Outside Pakistan
Commission Paid or payable 125,884 213,494
Add: Deferred Commission expense opening 407,306 338,950
Less: Deferred Commission expense closing 359,870 374,575
Add: Currency translation effect 15,987 135
Net Commission 189,307 178,004
Less: Commission received or recoverable 2,146 19,523
Add: unearned reinsurance commission 12,580 34,196
Less: unearned reinsurance commission 7,142 31,193
Add: Currency translation effect 371 11
7,955 22,537
181,352 155,467
(Unaudited) (Unaudited)
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
35ADAMJEE INSURANCE
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
23 Investment Income
Business underwritten Inside Pakistan
Available-for-sale
Income from equity securities
Dividend income
- associated undertakings 191,111 174,021
- others 192,412 315,513
383,523 489,534
Income from debt securities - Held to maturity
Return on Term Finance Certificates 1,351 1,425
Return on Pakistan Investment Bonds - 5,846
Profit on Treasury Bills 6,827 2,350
8,178 9,621
Net realized gains on investments
Realized gains on
- associated undertakings - -
- others 104,215 117,149
104,215 117,149
495,916 616,304
Reversal / (provision) of impairment in value of
'available-for-sale' investments 37,012 -
532,928 616,304
Business underwritten Outside Pakistan
Available-for-sale
Income from equity securities
Dividend income - 8,518
Net realized gains on investments - 51,026
- 59,544
Net investment income 532,928 675,848
(Unaudited) (Unaudited)
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
24 Earnings per share - basic and diluted
There is no dilutive effect on the basic earnings per share which is based on:
Net profit aster tax for the period 681,160
Weighted average number of shares 350,000,000 350,000,000
Basic earnings per share 1.95
Number of shares
Rupees
663,399
1.90
36 FIRST QUARTER REPORT
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
25 Transactions with related parties
The Company has related party relationships with its associates, subsidiary company, employee retirement benefit plans, key management personnel and other parties. Transactions are entered into with such related parties for the issuance of policies to and disbursements of claims incurred by them and payments of rentals for the use of premises rented from them. There are no transactions with key management personnel other than those specified in their terms of employment.
Investment in related parties have been disclosed in note 10 & 11 to the unconsolidated condensed interim financial information. Other transactions with related parties are summarized as follows:
i) Transactions
Subsidiary company
Premiums underwritten 11,562 7,026
Premiums received 9,142 242
Claims paid 80 49
Claims received 2,500 -
Premium paid - 2,200
Rent / service charges received - 510
Other related parties
Premiums underwritten 231,002 203,384
Premiums received 533,164 295,390
Claims paid 145,407 111,126
Rent paid 1,309 1,283
Commission Paid 13,262 4,405
Rent received - 1,613
Income on bank deposits 5,493 7,272
Investments made 143,093 151,272
Fee / service charges paid 2,088 -
Charge in respect of gratuity expense 8,164 4,733
Contribution to Employees'
Provident Fund 7,638 7,091
Compensation paid to Key
management personnel 222,861 196,607
ii) Period end balances
Subsidiary company
Balances receivable 15,502 686
Balances payable 796 759
Other related parties
Balances receivable 209,325 516,219
Balances payable 706,786 628,382
Cash and bank balances 1,031,467 1,375,420
Payable to Staff Gratuity Fund 89,655 84,442
Payable to Employees' Provident Fund 2,354 2,325
31 March 2018
Rupees in thousand
(Unaudited)
31 March 2017
31 March 2018
Rupees in thousand
(Unaudited) (Audited)
31 December 2017
(Unaudited)
37ADAMJEE INSURANCE
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
26
Se
gm
ent
Inf
orm
ati
on
Pre
miu
m r
ecei
vabl
e (In
clus
ive
of fe
dera
l exc
ise
duty
,F
eder
al in
sura
nce
fee
and
Adm
inis
trat
ive
surc
harg
e)9
24
,29
71
0,5
50
25
2,1
55
6,5
80
46
1,3
07
1,3
48
33
9,8
00
5,6
36
2,7
96
,04
5
1
,24
8,7
51
4,0
44
,79
6
Less
:F
eder
al e
xcis
e du
ty1
17
,28
65
88
28
,16
72
52
97
,24
9
8
18
,48
6
59
,88
6
1,2
24
,63
7
-6
42
2,0
37
30
22
64
,73
96
1,0
92
32
5,8
31
Fed
eral
insu
ranc
e fe
e8
,00
99
2,2
17
57
,14
8-
4,5
67
2,8
40
52
4,7
81
19
24
,80
07
99
,00
29
,95
32
21
,77
26
,32
3
7
14
,08
9
1
,16
4,7
51
4
56
,74
01
,28
43
14
,92
35
,32
9
2
,50
6,5
26
1
,18
7,6
40
3
,69
4,1
66
Gro
ss w
ritte
n pr
emiu
m (i
nclu
sive
of
adm
inis
trat
ive
surc
harg
e)7
99
,00
29
,95
32
21
,77
26
,32
37
14
,08
91
,16
4,7
51
45
6,7
40
1,2
84
31
4,9
23
5,3
29
2,5
06
,52
61
,18
7,6
40
3,6
94
,16
6G
ross
dire
ct p
rem
ium
79
5,7
96
9,9
27
21
6,4
53
6,2
85
69
1,1
75
1,0
97
,69
14
56
,54
31
,28
42
81
,11
55
,31
92
,44
1,0
82
1,1
20
,50
63
,56
1,5
88
Fac
ulta
tive
inw
ard
prem
ium
(32
2)
-6
5-
--
--
30
,99
9-
30
,74
2-
30
,74
2A
dmin
istr
ativ
e su
rcha
rge
3,5
28
26
5,2
54
38
22
,91
46
7,0
60
19
72
,80
91
03
4,7
02
67
,13
41
01
,83
67
99
,00
29
,95
32
21
,77
26
,32
37
14
,08
91
,16
4,7
51
45
6,7
40
1,2
84
31
4,9
23
5,3
29
2,5
06
,52
61
,18
7,6
40
3,6
94
,16
6
Insu
ranc
e pr
emiu
m e
arne
d1
,19
8,4
28
11
,01
62
26
,52
72
0,4
24
66
5,7
90
1,6
29
,33
14
48
,91
73
,25
34
13
,24
92
,96
22
,95
2,9
11
1,6
66
,98
64
,61
9,8
97
Insu
ranc
e pr
emiu
m c
eded
to
rein
sure
rs(9
70
,42
8)
(6,7
27
)(3
2,9
42
)-
(9,7
76
)(2
66
,30
8)
-3
09
(18
2,1
65
)(4
,66
5)
(1,1
95
,31
1)
(27
7,3
91
)(1
,47
2,7
02
)N
et in
sura
nce
prem
ium
22
8,0
00
4,2
89
19
3,5
85
20
,42
46
56
,01
41
,36
3,0
23
44
8,9
17
3,5
62
23
1,0
84
(1,7
03
)1
,75
7,6
00
1,3
89
,59
53
,14
7,1
95
Com
mis
sion
inco
me
87
,84
32
,43
51
42
-4
5,3
30
--
39
,20
21
90
12
7,1
91
7,9
55
13
5,1
46
Ne
t un
de
rwri
ting
inc
om
e /
(lo
ss)
31
5,8
43
6,7
24
19
3,7
27
20
,42
44
48
,91
73
,56
22
70
,28
6(1
,51
3)
1,8
84
,79
11
,39
7,5
50
Insu
ranc
e cl
aim
s(5
8,4
79
)(9
1)
(37
,03
1)
(12
9)
(32
8,3
51
)(1
,56
9,5
26
)(3
90
,65
0)
(61
7)
(16
2,4
69
)-
(97
6,9
80
)(1
,57
0,3
63
)(2
,54
7,3
43
)
Insu
ranc
e cl
aim
rec
over
ies
from
rei
nsur
er(2
3,5
69
)(2
,54
5)
(8,6
87
)-
42
,67
16
23
,93
9-
1,7
38
10
2,6
19
-1
13
,03
46
23
,13
27
36
,16
6
Net
cla
ims
(82
,04
8)
(2,6
36
)(4
5,7
18
)(1
29
)(2
85
,68
0)
(94
5,5
87
)(3
90
,65
0)
1,1
21
(59
,85
0)
-(8
63
,94
6)
(94
7,2
31
)(1
,81
1,1
77
)
Com
mis
sion
exp
ense
(95
,08
9)
(1,4
36
)(3
0,8
93
)(1
,33
4)
(47
,57
6)
(18
5,8
88
)(8
,91
9)
(36
5)
(42
,50
9)
(28
4)
(22
4,9
86
)(1
89
,30
7)
(41
4,2
93
)
Man
agem
ent
expe
nse
(67
,21
5)
(14
9)
(49
,25
4)
(1,1
51
)(1
65
,56
2)
(12
1,3
37
)(3
6,5
48
)(1
,07
4)
(42
,43
4)
(1,1
34
)(3
61
,01
3)
(12
4,8
45
)(4
85
,85
8)
Pre
miu
m d
efici
ency
exp
ense
--
--
--
--
--
--
-
Net
insu
ranc
e cl
aim
s an
d ex
pens
es(2
44
,35
2)
(4,2
21
)(1
25
,86
5)
(2,6
14
)(4
98
,81
8)
(1,2
52
,81
2)
(43
6,1
17
)(3
18
)(1
44
,79
3)
(1,4
18
)(1
,44
9,9
45
)(1
,26
1,3
83
)(2
,71
1,3
28
)
Und
erw
riti
ng r
esu
lt7
1,4
91
2,5
03
67
,86
21
7,8
10
15
7,2
00
1
15
,54
1
12
,80
03
,24
41
25
,49
3(2
,93
1)
43
4,8
46
1
36
,16
7
57
1,0
13
Net
inve
stm
ent
inco
me
-R
enta
l inc
ome
2,5
15
-2
,51
5O
ther
inco
me
14
,04
41
8,5
26
32
,57
0O
ther
exp
ense
s(1
31
,78
5)
(58
,42
7)
(19
0,2
12
)E
xcha
nge
gain
1,6
96
-1
,69
6P
rofit
from
Win
dow
Tak
aful
Ope
rati
ons
19
,81
0-
19
,81
0W
orke
rs' W
elfa
re F
und
(19
,40
6)
-(1
9,4
06
)
Pro
fit b
efo
re t
ax
Seg
men
t A
sset
s6
,57
4,3
00
74
,71
85
95
,03
41
4,6
41
1,2
27
,73
95
,38
0,6
66
68
1,4
00
12
,90
31
,74
5,6
46
21
,06
71
0,8
24
,11
95
,50
3,9
95
16
,32
8,1
14
Una
lloca
ted
asse
ts2
8,1
14
,37
93
,76
1,5
33
31
,87
5,9
12
38
,93
8,4
98
9,2
65
,52
84
8,2
04
,02
6
Seg
men
t Li
abili
ties
6,7
81
,68
38
2,9
54
56
0,2
06
6,8
53
2,4
08
,13
98
,09
3,6
38
1,6
50
,60
51
5,3
63
2,0
39
,03
01
4,6
25
13
,43
9,6
63
8,2
13
,43
32
1,6
53
,09
6U
nallo
cate
d Li
abili
ties
2,5
09
,66
23
,01
3,8
78
15
,94
9,3
25
8,7
17
,64
92
4,6
66
,97
4
Qua
rte
r e
nd
ed 3
1 M
arc
h 2
01
8
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Rup
ee
s in t
ho
usa
nd
Fir
e a
nd
pro
pe
rty d
am
ag
eM
ari
ne
, a
via
tio
n a
nd
tra
nsp
ort
Mo
tor
He
alt
hM
isce
lla
ne
ous
To
tal
Ag
gre
ga
teIn
sid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
31
Ma
rch 2
01
8
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Rup
ee
s in t
ho
usa
nd
Fir
e a
nd
pro
pe
rty d
am
ag
eM
ari
ne
, a
via
tio
n a
nd
tra
nsp
ort
Mo
tor
He
alt
hM
isce
lla
ne
ous
To
tal
Ag
gre
ga
teIn
sid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
-
3
,28
2,3
41
1,3
68
,35
3
65
6,0
18
53
2,9
28
5
32
,92
8
85
4,6
48
9
50
,91
4
9
6,2
66
50
4,2
16
38 FIRST QUARTER REPORT
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
26
.1S
egm
ent
Info
rma
tio
n
Pre
miu
m r
ecei
vabl
e (In
clus
ive
of fe
dera
l exc
ise
duty
,
Fed
eral
insu
ranc
e fe
e an
d A
dmin
istr
ativ
e su
rcha
rge)
1,2
32
,35
01
2,4
73
28
5,0
88
9,4
55
74
2,4
11
1,8
20
,68
75
68
,91
7-
32
9,9
78
5,9
24
3,1
58
,74
31
,84
8,5
39
5,0
07
,28
2L
ess:
Fed
eral
exc
ise
duty
15
4,3
69
12
63
2,4
20
25
87
,82
6-
--
25
,39
84
53
00
,01
31
96
30
0,2
09
Fed
eral
insu
ranc
e fe
e1
0,7
69
10
2,5
06
13
6,4
82
-5
,63
3-
3,0
18
32
8,4
09
26
28
,43
51
,06
7,2
12
12
,33
72
50
,16
19
,41
76
48
,10
21
,82
0,6
87
56
3,2
84
-3
01
,56
25
,87
62
,83
0,3
21
1,8
48
,31
74
,67
8,6
38
Gro
ss w
ritte
n pr
emiu
m (i
nclu
sive
of
adm
inis
trat
ive
surc
harg
e)1
,06
7,2
12
12
,33
72
50
,16
19
,41
76
48
,10
21
,82
0,6
87
56
3,2
84
-3
01
,56
25
,87
62
,83
0,3
21
1,8
48
,31
74
,67
8,6
38
Gro
ss d
irect
pre
miu
m1
,06
2,7
26
12
,28
92
45
,17
69
,39
06
27
,79
21
,81
9,3
12
56
3,1
58
-2
98
,56
15
,85
52
,79
7,4
12
1,8
46
,84
64
,64
4,2
58
Facu
ltat
ive
inw
ard
prem
ium
65
5-
--
--
--
--
65
5-
65
5A
dmin
istr
ativ
e su
rcha
rge
3,8
31
48
4,9
86
27
20
,31
01
,37
51
26
-3
,00
12
13
2,2
54
1,4
71
33
,72
51
,06
7,2
12
12
,33
72
50
,16
19
,41
76
48
,10
21
,82
0,6
87
56
3,2
84
-3
01
,56
25
,87
62
,83
0,3
21
1,8
48
,31
74
,67
8,6
38
Insu
ranc
e pr
emiu
m e
arne
d1
,29
4,5
38
15
,13
12
52
,36
71
9,7
61
55
6,6
66
1,4
65
,36
24
29
,62
1-
36
9,9
14
6,3
51
2,9
03
,10
61
,50
6,6
05
4,4
09
,71
1
Insu
ranc
e pr
emiu
m c
eded
to
rein
sure
rs(1
,06
2,6
97
)(8
,98
9)
(62
,74
2)
-(8
,71
0)
(22
9,1
15
)-
41
8(1
26
,76
6)
(4,9
18
)(1
,26
0,9
15
)(2
42
,60
4)
(1,5
03
,51
9)
Net
insu
ranc
e pr
emiu
m2
31
,84
16
,14
21
89
,62
51
9,7
61
54
7,9
56
1,2
36
,24
74
29
,62
14
18
24
3,1
48
1,4
33
1,6
42
,19
11
,26
4,0
01
2,9
06
,19
2C
omm
issi
on in
com
e1
04
,89
71
,69
22
83
-2
19
,55
4-
-2
1,2
58
1,2
91
12
6,4
40
22
,53
71
48
,97
7N
et u
nd
erw
riti
ng
in
com
e3
36
,73
87
,83
41
89
,90
81
9,7
61
54
7,9
58
1,2
55
,80
14
29
,62
14
18
26
4,4
06
2,7
24
1,7
68
,63
11
,28
6,5
38
3,0
55
,16
9
Insu
ranc
e cl
aim
s(1
61
,20
9)
(10
,81
4)
(93
,27
3)
(2,5
11
)(2
81
,80
1)
(1,6
31
,29
3)
(36
3,7
04
)(3
,58
8)
(10
7,2
56
)3
53
(1,0
07
,24
3)
(1,6
47
,85
3)
(2,6
55
,09
6)
Insu
ranc
e cl
aim
rec
over
ies
from
rei
nsur
er1
25
,30
01
0,2
80
19
,27
3-
9,0
64
66
9,0
97
-2
,40
89
,27
6(3
43
)1
62
,91
36
81
,44
28
44
,35
5
Net
cla
ims
(35
,90
9)
(53
4)
(74
,00
0)
(2,5
11
)(2
72
,73
7)
(96
2,1
96
)(3
63
,70
4)
(1,1
80
)(9
7,9
80
)1
0(8
44
,33
0)
(96
6,4
11
)(1
,81
0,7
41
)
Com
mis
sion
exp
ense
(11
3,8
47
)(2
,48
0)
(33
,58
1)
(60
7)
(46
,91
4)
(17
4,5
26
)(8
,53
5)
(73
)(1
6,6
39
)(3
18
)(2
19
,51
6)
(17
8,0
04
)(3
97
,52
0)
Man
agem
ent
expe
nse
(62
,41
1)
(56
6)
(49
,92
4)
(32
0)
(14
2,4
69
)(8
9,9
55
)(3
2,2
22
)(2
90
)(4
2,5
32
)(1
92
)(3
29
,55
8)
(91
,32
3)
(42
0,8
81
)
Pre
miu
m d
efici
ency
exp
ense
--
--
--
--
--
--
-
Net
insu
ranc
e cl
aim
s an
d ex
pens
es(2
12
,16
7)
(3,5
80
)(1
57
,50
5)
(3,4
38
)(4
62
,12
0)
(1,2
26
,67
7)
(40
4,4
61
)(1
,54
3)
(15
7,1
51
)(5
00
)(1
,39
3,4
04
)(1
,23
5,7
38
)(2
,62
9,1
42
)
Un
der
wri
tin
g r
esu
lt1
24
,57
14
,25
43
2,4
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,32
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5,8
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,12
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(1,1
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)1
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,25
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,22
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,22
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,58
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,69
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,84
41
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1,0
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,83
15
,46
7,9
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74
4,8
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,64
31
,87
0,2
56
14
,59
91
2,3
33
,91
15
,57
6,2
85
17
,91
0,1
96
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ts2
6,0
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,02
93
,39
5,6
68
29
,42
0,6
97
38
,35
8,9
40
8,9
71
,95
34
7,3
30
,89
3
Seg
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,87
7,1
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,52
55
63
,98
32
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50
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,54
08
,01
9,0
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1,6
32
,47
71
7,2
82
2,1
14
,50
31
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,47
4,6
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,14
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,75
6U
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4,9
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2,8
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,19
6
16
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9,5
27
8,6
43
,42
52
5,4
92
,95
2
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Pa
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39ADAMJEE INSURANCE
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
27 Fair value measurement of financial instruments
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is the presumption that the company is a going concern and there is no intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis.
IFRS 13 'Fair Value Measurement' requires the company to classify fair value measurements and fair value hierarchy that reflects the significance of the inputs used in making the measurements of fair value hierarchy has the following levels:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
- Inputs other than quoted prices included within level 1 that are observable for the asset either directly (that is, derived from prices) (Level 2)
- Inputs for the asset or liability that are not based on observable market data (that is, unadjusted) inputs (Level 3)
Transfer between levels of the fair value hierarchy are recognized at the end of the reporting period during which the changes have occurred.
Carrying amount Fair value
Availablefor sale
Receivablesand other
financila assets
Cash andcash
equivalents
Otherfinancialliabilities
Total Level 1 Level 2 Level 3 Total
Note
Rupees in thousand
31 March 2018
Financial assets
Investment in Subsidiary 10
Investments
Equity securities 11
Debt securities 12
Loans and other receivables * 13
Insurance / reinsurance receivables
- unsecured and considered good * 14
Reinsurance recoveries against outstanding claims *
Salvage recoveries accrued *
Prepayments * 15
Cash and bank * 16
Financial liabilities
Outstanding claims (including IBNR)*
Insurance / reinsurance payables *
Other creditors and accruals*
Accrued expenses*
Unclaimed dividend*
990,133
21,323,933
-
-
22,314,066
-
-
-
-
-
-
-
-
726,014
-
726,014
-
-
-
-
-
-
-
-
-
861,813
6,037,101
7,537,938
379,178
1,900,835
-
16,716,865
-
-
-
-
-
-
-
-
-
-
-
-
-
4,822,976
4,822,976
-
-
-
-
-
-
-
-
-
-
- -
- -
-
-
-
11,426,866
1,488,327
1,746,391
60,304
105,577
14,827,465
990,133
21,323,933
726,014
861,813
6,037,101
7,537,938
379,178
1,900,835
4,822,976
44,579,921
11,426,866
1,488,327
1,746,391
60,304
105,577
14,827,465
-
19,337,024
-
-
-
-
-
-
-
19,337,024
-
-
-
-
-
-
-
-
726,014
-
-
-
-
-
-
726,014
-
-
-
-
-
-
990,133
1,986,909
-
-
-
-
-
-
-
2,977,042
-
-
-
-
-
-
990,133
21,323,933
726,014
-
-
-
-
-
-
23,040,080
-
-
-
-
-
-
* The Company has not disclosed the fair value of these items because their carrying amounts are a reasonable approximation of fair value.
Held tomaturity
-
-
-
-
-
-
-
- -
40 FIRST QUARTER REPORT
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
27.1 Fair value measurement of financial instruments
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is the presumption that the company is a going concern and there is no intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis.
IFRS 13 'Fair Value Measurement' requires the company to classify fair value measurements and fair value hierarchy that reflects the significance of the inputs used in making the measurements of fair value hierarchy has the following levels:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
- Inputs other than quoted prices included within level 1 that are observable for the asset either directly (that is, derived from prices) (Level 2)
- Inputs for the asset or liability that are not based on observable market data (that is, unadjusted) inputs (Level 3)
Transfer between levels of the fair value hierarchy are recognized at the end of the reporting period during which the changes have occurred.
31 December 2017 - Restated
Financial assets
Investment in Subsidiary 10
Investments
Equity securities 11
Debt securities 12
Loans and other receivables * 13
Insurance / reinsurance receivables
- unsecured and considered good * 14
Reinsurance recoveries against outstanding claims *
Salvage recoveries accrued *
Prepayments * 15
Cash and bank * 16
Financial liabilities
Outstanding claims (including IBNR)*
Insurance / reinsurance payables *
Other creditors and accruals*
Accrued expenses*
Unclaimed dividend*
990,133
20,230,227
-
-
-
21,220,360
-
-
-
-
-
-
-
-
441,832
-
-
441,832
-
-
-
-
-
-
-
-
-
365,758
6,770,967
7,709,161
347,289
2,499,931
-
17,693,106
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,299,108
4,299,108
-
-
-
-
-
-
-
-
-
-
-
-
- -
- - -
- - -
- - -
-
11,485,744
1,668,516
1,813,021
122,578
106,214
15,196,073
990,133
20,230,227
441,832
365,758
6,770,967
7,709,161
347,289
2,499,931
4,299,108
43,654,406
11,485,744
1,668,516
1,813,021
122,578
106,214
15,196,073
-
18,243,318
-
-
-
-
-
-
-
18,243,318
-
-
-
-
-
-
-
-
441,832
-
-
-
-
-
-
441,832
-
-
-
-
-
-
990,133
1,986,909
-
-
-
-
-
-
-
2,977,042
-
-
-
-
-
-
990,133
20,230,227
441,832
-
-
-
-
-
-
21,662,192
-
-
-
-
-
-
* The Company has not disclosed the fair value of these items because their carrying amounts are a reasonable approximation of fair value.
Carrying amount Fair value
Availablefor sale
Receivablesand other
financila assets
Cash andcash
equivalents
Otherfinancialliabilities
Total Level 1 Level 2 Level 3 Total
Note
Held tomaturity
Rupees in thousand
41ADAMJEE INSURANCE
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
28 Movement in investment
‘Available-for-Sale’ ‘Held-to-Maturity’ Total
As at beginning of previous year 23,575,059 386,626 23,961,685
Additions 6,400,626 1,399,001 7,799,627
Disposals (Sales and redemptions) (5,521,637) (1,344,848) (6,866,485)
Fair value net gains
(excluding net realized gain) (2,179,624) - (2,179,624)
Unwinding of income on Investment bonds - 1,053 1,053
Impairment / (reversal of losses) (1,054,064) - (1,054,064)
As at beginning of current year 21,220,360 441,832 21,662,192
Additions 313,814 655,066 968,880
Disposals (sales and redemptions) (269,680) (370,884) (640,564)
Fair value on gains
(excluding net realized gain) 1,012,560 - 1,012,560
Impairment / (reversal of losses) 37,012 - 37,012
As at end of current period 22,314,066 726,014 23,040,080
Rupees in thousand
29 Date of authorization for issue
This unconsolidated condensed interim financial information was authorized for issue on 23 April 2018 by the Board of Directors of the Company.
30 Non-adjusting events after balance sheet date
The Board of Directors of the Company in their meeting held on 21 March 2018 proposed final cash dividend for the year ended 31 December 2017 @ 10% i.e. Rupee 1 /- per share which has been approved by the members in the Annual General Meeting held on 23 April 2018. This unconsolidated condensed interim financial information for the quarter ended 31 March 2018 does not include the effect of this appropriation which will be accounted for in the unconsolidated condensed interim financial information for the half year ending 30 June 2018.
31 General
31.1 Corresponding figures have been rearranged and reclassified for better presentation, wherever considered necessary.
31.2 Figures have been rounded off to the nearest thousand rupees unless other wise stated.
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
42 FIRST QUARTER REPORT
43ADAMJEE INSURANCE
On behalf of the Board, we are pleased to present the consolidated condensed interim financial information of Adamjee Insurance Company Limited and its subsidiary, Adamjee Life Assurance Company Limited for the quarter ended 31 March 2018.
The highlights for the period under review are as follows:
Directors’ Report to the members on Consolidated Condensed Interim Financial InformationFor the Quarter Ended 31 March 2018
(Unaudited) (Unaudited)
On Behalf of Board of Directors
Lahore: 23 April 2018 Managing Director &
Muhammad Ali Zeb
31 March 2018 31 March 2017
Rupees in thousand
Earnings per share
The consolidated condensed interim financial information reflects Rs. 1.88 (31 March 2017: Rs. 1.95) earnings per share for the period under review.
Profit before tax
Taxation
Profit aster tax
Profit/(Loss) attributable to non-controlling interest
Profit attributable to ordinary shareholders
Unappropriated profit brought forward
Profit available for appropriation
Profit from Window Takaful Operations
(287,614)
(1,261)
946,108
658,494
659,755
11,634,582
12,307,288
19,810
975,415
(292,258)
683,157
514
682,643
11,797,814
12,480,457
14,880
Chief Executive OfficerDirector
Muhammad Umar Virk
44 FIRST QUARTER REPORT
45ADAMJEE INSURANCE
CONSOLIDATEDCondensed Interim
Financial Informationfor the Quarter Ended
31 March 2018(Unaudited)
46 FIRST QUARTER REPORT
Consolidated Condensed Interim Balance Sheet As at 31 March 2018
Restated
31 March 2018Note
Rupees in thousand
(Unaudited) (Audited)
31 December 2017
EQUITY AND LIABILITIES
Share capital and reserves attributable to Company's equity holders
Authorized share capital
375,000,000 (2017: 375,000,000) ordinary shares of Rs. 10 each 3,750,000 3,750,000
Issued, subscribed and paid up capital 3,500,000 3,500,000
Reserves 17 7,222,043 6,178,739
Unappropriated Profit 12,307,288 11,634,582
Equity attributable to equity holders of the parent 23,029,331 21,313,321
Non-controlling interest 52,514 46,661
Balance of statutory funds (including policy holders' liabilities
technical reserves of Rs. 29.310 billion (2017: Rs. 27.096 billion) 29,980,416 27,667,002
Liabilities
Underwriting provisions
Outstanding claims including IBNR 11,945,932 11,844,834
Unearned premium reserves 8,136,283 8,912,498
Premium deficiency reserves - -
Unearned reinsurance commission 195,862 240,306
Retirement benefit obligation 205,389 185,903
Deferred taxation 29,331 30,218
Premium received in advance 710,823 576,616
Insurance / reinsurance payables 1,515,540 1,681,093
Other creditors and accruals 2,543,106 2,911,360
Taxation - provision less payments 23,918 -
Accrued expenses 74,397 141,691
Unclaimed dividends 105,577 106,214
25,486,158 26,630,733
Total liabilities of Window Takaful Operations
16 174,947 141,312
Contingencies and commitments 18
78,723,366 75,799,029
The annexed notes form an integral part of this consolidated condensed interim financial information
- Operator's Fund (Holding Company)
ASSETS
Property and equipment 8 2,844,792 2,735,542
Intangible assets 9 90,698 97,760
Investment property 685,000 637,981
Investments
Equity securities 10 32,727,637 30,828,727
Debt securities 11 6,062,38411,680,000
5,498,29310,625,000
Loan secured against life insurance policies 30,614 31,170
Loans and other receivables 12 1,861,109 1,051,147
Insurance / reinsurance receivables 13 6,107,502 6,846,091
Reinsurance recoveries against outstanding claims 7,537,938 7,709,161
Salvage recoveries accrued 379,178 347,289
Deferred commission expense / acquisition cost 614,722 733,631
Taxation - payments less provision - 212,748
Prepayments 14 1,973,919 2,552,498
Cash and bank 15 5,838,873 5,650,742
78,434,366 75,557,780
16 289,000 241,249
78,723,366 75,799,029
Restated
31 March 2018Note
Rupees in thousand
(Unaudited) (Audited)
31 December 2017
Term Deposits
Total assets of Window Takaful Operations
- Operator's Fund (Holding Company)
47ADAMJEE INSURANCE
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
48 FIRST QUARTER REPORT
Consolidated Condensed Interim Profit and Loss Account (Unaudited)For the Quarter Ended 31 March 2018
Quarter ended
31 March 2018
Note
Rupees in thousand
Quarter ended
31 March 2017
Revenue account
Net Insurance Premium 19 5,631,136 4,831,041
Net Insurance Claims 20 (3,256,759) (2,420,808)Premium deficiency - -Net Commission and other acquisition costs 21 (648,999) (617,607)Insurance claims and acquisition expenses (3,905,758) (3,038,415)
22 1,932,262 569,417Net change in policy holder liabilities 20 (2,213,644) (1,332,801)Surplus of Policyholder’s funds
(754,403)(118,580)
(563,350)(39,865)
Underwriting results 571,013 426,027
Investment income 22 537,979 680,864Rental income 2,515 1,613Other income 32,570 35,858Other expenses (200,069) (164,210)Results of operating activities 944,008 980,152
Exchange gain 1,696 245Profit from window takaful operations 16 19,810 14,880Workers' welfare fund (19,406) (19,862)Profit before tax 946,108 975,415
Income tax expense (287,614) (292,258)
Profit aster tax 658,494 683,157
Profit / (loss) attributable to:Equity holders of the parent 659,755 682,643Non-controlling interest (1,261) 514
658,494 683,157
Profit and loss appropriation account - Parent Company
Balance at the commencement of the period 11,634,582 11,797,814Profit aster tax for the periodCapital contribution from statutory fund
659,755 682,643-12,951
Balance unappropriated profit at the end of period 12,307,288 12,480,457
Earnings per share - basic and diluted 23 1.88 1.95
The annexed notes form an integral part of this consolidated condensed interim financial information
Rupees
Investment income - Statutory funds
Management expenses
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
Consolidated Condensed Interim Statement of Comprehensive Income (Unaudited)For the Quarter Ended 31 March 2018
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
Profit aster tax for the period 658,494 683,157
Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
Unrealised gains on 'available-for-sale' investments 1,022,781 43,693
Other comprehensive income from window takaful operations 759 470
Effect of translation of investment in foreign branches - net 22,393 440
Total comprehensive income for the period 1,704,427 727,760
Total comprehensive income attributable to:
Equity holders of the parent 1,703,059 719,455
Non-controlling interest 1,368 8,305
1,704,427 727,760
The annexed notes form an integral part of this consolidated condensed interim financial information.
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
Restated
49ADAMJEE INSURANCE
50 FIRST QUARTER REPORT
Consolidated Condensed Interim Cash Flow Statement (Unaudited)For the Quarter Ended 31 March 2018
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
Cash flows from operating activities
Underwriting activities
Premiums received 7,297,695 7,358,558
Reinsurance premiums paid (1,058,108) (898,848)
Claims paid (4,206,896) (2,876,447)
Surrenders paid (14,790) (7,265)
Reinsurance and other recoveries received 882,803 412,523
Commissions paid (997,669) (701,292)
Commissions received 90,331 135,676
Other underwriting payments (245,159) (274,636)
Net cash generated from underwriting activities 1,748,207 3,148,269
Other operating activities
Income tax paid (55,073) (26,319)
General and management expenses paid (1,060,171) (669,726)
Loans disbursed (10,868) (12,378)
Loans repayments received 12,556 11,451
Other receipts 6,868 1,558
Net cash used in other operating activities (1,106,688) (695,414)
Total cash generated from all operating activities 641,519 2,452,855
Cash flows from investing activities
Profit / return received on bank deposits 303,718 231,926
Return on Pakistan Investment Bonds - 13,531
Income from treasury bills 11,116 2,859
Dividends received 196,247 104,827
Rentals received 768 1,613
Disbursement of policy loans 33,363 (2,073)
Settlement of policy loans (30,614) 2,213
Payments for investments (23,287,675) (6,264,109)
Proceeds from disposal of investments 19,445,361 4,670,158
Fixed capital expenditure - tangible assets (162,310) (89,005)
Fixed capital expenditure - intangible assets (185) (1,656)
Proceeds from disposal of fixed assets 2,460 12,044
Total cash used in investing activities (9,492,751) (7,392,672)
Cash flows from financing activities
Dividends paid
Net cash used in financing activities
Net cash used in all activities
Cash at the beginning of the year - Restated
Cash at the end of the year
(637)
(637)
(8,851,869)
14,654,492
5,802,623
(269)
(269)
(4,940,086)
10,953,816
6,013,730
Term deposit placements (6,005,000) (6,075,000)
Restated
Consolidated Condensed Interim Cash Flow Statement (Unaudited)For the Quarter Ended 31 March 2018
Reconciliation to profit and loss account
Operating cash flows 641,519 2,452,856
Depreciation expense (43,910) (33,830)
Provision for gratuity (11,160) (1,205)
Other income - bank deposits 26,391 27,642
Gain on disposal of operating fixed assets 1,011 4,851
Rental income 2,515 1,613
Increase / (decrease) in assets other than cash (863,598) 898,169
Increase in liabilities other than running finance (2,136,031) (3,083,148)
Profit on sale of investments 688,963 224,869
Amortization expense (8,615) (7,523)
Capital contribution from shareholders' fund 17,436 (16,510)
Increase / (decrease) in unearned premium 776,215 (270,147)
Decrease in loans (1,688) (927)
Income taxes paid 24,078 16,896
Provision for impairment in value of
available-for-sale investments 37,012 -
Dividend and other income 1,767,982 737,308
Income from treasury bills 6,827 2,350
Return on Pakistan Investment Bonds - 5,846
Income from TFCs 1,351 1,425
Profit from Window Takaful Operations 19,810 14,880
Profit before tax 946,108 975,415
Definition of cash
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
Cash comprises cash in hand, bank balances excluding Rs. 36,250 thousands (2017: Rs 106,250 thousands) held under lien, and other deposits which are readily convertible to cash and which are used in the cash management function on a day-to-day basis.
Cash for the purposes of the statement of cash flows consists of:
Cash and other equivalents 18,322 29,180
Current and other accounts 3,517,211 5,494,644
Deposits maturing within 12 months 2,267,090 489,906
Total cash and cash equivalents 5,802,623 6,013,730
The annexed notes form an integral part of this consolidated condensed interim financial information.
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
Restated
51ADAMJEE INSURANCE
52 FIRST QUARTER REPORT
Consolidated Condensed Interim Statement of Changes in Equity (Unaudited)For the Quarter Ended 31 March 2018
Share capital Capital reserve Revenue reserve
Issued,subscribed
and paid up
Reserve for exceptional
losses
Investment fluctuation
reserve
Exchange translation
reserve
General reserve
Fair Value Reserve
Capital contribution to statutory fund
Unappropriated Profit
Net Retained earnings
Total
Balance as at 31 December 2016 - (Audited) 3,500,000 22,859 3,764 443,711 936,500 - (341,687) 12,139,501 11,797,814 16,704,648 23,610 16,728,258
Effect of restatement as disclosed in note 4.1.2 - - - - - 7,061,641 - - - - 7,061,641 7,061,641 Balance as at 31 December 2016 - (Audited) restated 3,500,000 22,859 3,764 443,711 936,500 7,061,641 (341,687) 12,139,501 11,797,814 23,766,289 23,610 23,789,899
Profit for the period 01 January 2017 to 31 March 2017 - - - - - - - 682,643 682,643 682,643 514 683,157Other comprehensive income for the
period 01 January 2017 to 31 March 2017 - - - 440 - 36,372 -- - 36,812 7,791 44,603Capital contribution to statutory funds - - - - -- - - -Total comprehensive income for the period - - - 440 - 36,372 - 682,643 682,643 719,455 8,305 727,760
Balance as at 31 March 2017 - (Unaudited) - restated 3,500,000 22,859 3,764 444,151 936,500 7,098,013 (341,687) 12,822,144 12,480,457 24,485,744 31,915 24,517,659
Profit / (loss) for the period 01 April 2017 to 31 December 2017 - - - - - - - 522,699 522,699 522,699 (6,015) 516,684Other comprehensive income / (loss) for the
period 01 April 2017 to 31 December 2017 - - - 22,949 - (2,349,497) - (51,033) (51,033) (2,377,581) (7,791) (2,385,372)Capital contribution to statutory funds - - - - 82,459 - 82,459 82,459 28,552 111,011Total comprehensive income / (loss) for the period - - - 22,949 - (2,349,497) 82,459 471,666 554,125 (1,772,423) 14,746 (1,757,677)
3,500,000 22,859 3,764 467,100 936,500 4,748,516 (259,228) 13,293,810 13,034,582 22,713,321 46,661 22,759,982
Final dividend for the year ended 31 December 2016@ 25% (Rupees 2.5/- per share) - - - - - - - (875,000) (875,000) (875,000) - (875,000)
Interim dividend for the period ended 30 June 2017@ 15% (Rupees 1.5/- per share) - - - - - - - (525,000) (525,000) (525,000) - (525,000)
- - - - - - - (1,400,000) (1,400,000) (1,400,000) - (1,400,000)
Balance as at 31 December 2017 - (Audited) - restated 3,500,000 22,859 3,764 467,100 936,500 4,748,516 (259,228) 11,893,810 11,634,582 21,313,321 46,661 21,359,982
Profit / (loss) for the period 01 January 2018 to 31 March 2018 - - - - - - - 659,755 659,755 659,755 (1,261) 658,494Other comprehensive income for the
period 01 January 2018 to 31 March 2018 - - - 22,393 - 1,020,911 - - - 1,043,304 2,629 1,045,933Capital contribution to statutory funds - - - - - - 12,951 - 12,951 12,951 4,485 17,436Total comprehensive income for the period - - - 22,393 - 1,020,911 12,951 659,755 672,706 1,716,010 5,853 1,721,863
Balance as at 31 March 2018 - (Unaudited) 3,500,000 22,859 3,764 489,493 936,500 5,769,427 (246,277) 12,553,565 12,307,288 23,029,331 52,514 23,081,845
The annexed notes form an integral part of this consolidated condensed interim financial information
Equity attributable to equity holders of the parent
Non-controlling interest
Rupees in thousand
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
- -
- -
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
1 Legal status and nature of business
The Group consists of:
Holding Company
Adamjee Insurance Company Limited
Subsidiary Company
Adamjee Life Assurance Company Limited [74.28% held by Adamjee Insurance Company Limited (2017: 74.28%)]
Adamjee Insurance Company Limited (Holding Company)
Adamjee Insurance Company Limited is a public limited company incorporated in Pakistan on 28 September 1960 under the Companies Act, 1913 (now the Companies Act 2017). The Company is listed on Pakistan stock exchange and is engaged in the general insurance business comprising fire and property, marine, motor, accident & health and miscellaneous classes. The registered office of the Company is situated at Tanveer Building, 27-C-III, MM Alam Road, Gulberg III, Lahore.
The Holding Company also operates branches in the United Arab Emirates (UAE) and the Export Processing Zone (EPZ).
The Holding Company was granted authorization on 23 December 2015 under Rule 6 of Takaful Rules, 2012 to undertake Window Takaful Operations in respect of general takaful products by Securities and Exchange Commission of Pakistan (SECP) and commenced Window Takaful Operations on 01 January 2016.
Adamjee Life Assurance Company Limited (Subsidiary Company)
Adamjee Life Assurance Company Limited was incorporated in Pakistan on 4 August 2008 as a public unlisted company under the Companies Ordinance, 1984 and started its operations from 24 April 2009. The registered office of the Company is located at First Floor Islamabad Stock Exchange Tower, 55-B, Jinnah Avenue, Blue Area, Islamabad while its principal place of business is located at Third Floor, The Forum, Khayaban-e-Jami, Clifton, Karachi. The Company is a subsidiary of Adamjee Insurance Company Limited and an associate of IVM Intersurer B.V. who have a holding of 74.28% (2017: 74.28%) and 25.72% (2017: 25.72%), respectively in the share capital of the Company. IVM Intersurer B.V. has nominated Hollard Life Assurance Company Limited (HLA), a subsidiary of IVM Intersurer B.V., to act on its behalf in respect of matters relating to the Company. HLA is South Africa's largest private sector insurance company.
The Company is engaged in life assurance business carrying on non-participating business only. In accordance with the requirements of the Insurance Ordinance, 2000, the Company has established a shareholders' fund and the following statutory funds in respect of its each class of life assurance business:
- Conventional Business
- Accident and Health Business
- Non-Unitised Investment Link Business
- Unit Linked Business
- Individual Family Takaful Unit Linked Business
2 Basis of preparation
This consolidated condensed interim financial information has been prepared in accordance with the requirements of the International Accounting Standard (IAS) 34 - 'Interim Financial Reporting' as applicable in Pakistan, provisions of and directives issued under Companies Act, 2017, the Insurance Ordinance, 2000, Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and Takaful Rules, 2012. In case where requirements differ, the provisions of or directives issued under the Companies Act, 2017, the Insurance Ordinance, 2000, Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and Takaful Rules, 2012 have been followed.
This consolidated condensed interim financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with annual financial statements of the Company for the year ended 31 December 2017.
3 Statement of Compliance
3.1 This consolidated condensed interim financial information has been prepared under the historical cost convention except
53ADAMJEE INSURANCE
54 FIRST QUARTER REPORT
that certain investments are carried at fair value and the obligations under certain employee benefits that are measured at present value. Accrual basis of accounting has been used except for cash flow information.
3.2 The Companies Act, 2017 (“the Act”) was enacted on 30 May 2017 and replaced and repealed the Companies Ordinance, 1984 (“the repealed Ordinance”) with its application from January 01,2018. Accordingly, this consolidated condensed interim financial information has been prepared in accordance with the provision of the Companies Act, 2017.
3.3 Securities and Exchange Commission of Pakistan (“SECP”) vide S.R.O 88(1)/2017 and S.R.O89(1)/2017 dated 9 February 2017 has issued the Insurance Accounting Regulations, 2017 and Insurance Rules, 2017 (the new Rules and Regulations). The application of these Regulations and Rules for the purpose of preparation and presentation of the financial statements was effective from 1 April 2017.
However, SECP vide letter ID/OSM/Adamjee/2017/12269 dated 11 October 2017 has allowed the Company for the application of new Regulations effective from 1 January 2018. Consequently, the Company has changed its accounting policies in respect of presentation of financial statements and "available-for-sale" investments as explained in note 4.1 of this consolidated condensed interim financial information.
4 Summary of significant accounting policies
The accounting policies and methods of computation adopted in the preparation of this consolidated condensed interim financial information are the same as those applied in the preparation of the consolidated financial statements of the Company for the year ended 31 December 2017 except for change in accounting policies in note 4.1 of this consolidated condensed interim financial information.
The Company has adopted all the applicable new standards and amendments to standards, including any consequential amendments to other standards, with a date of initial application of 01 January 2018, as mentioned in the financial statements for the year ended 31 December 2017.
There is no significant impact of such changes on this consolidated condensed interim financial information of the Company.
4.1 Changes in accounting policies
4.1.1 Presentation and disclosure of financial statements
As per Insurance Rules, 2017, the presentation and disclosure requirements of the financial statements have changed under the format prescribed in Annexure II of the said Rules. Accordingly, change in presentation and disclosures of this consolidated condensed interim financial information has been applied retrospectively.
4.1.2 Investments
Financial assets were previously measured as per the provisions of repealed SEC (Insurance) Rules, 2002. Starting from financial year 2018, Financial Assets fall in the scope of IAS 39 “Financial Instruments - Recognition and Measurement”, and are classified as loans and receivables, held-to-maturity investments or available-for-sale financial assets, as appropriate. Financial assets are initially measured at cost, which is the fair value of consideration given and received respectively. These financial assets are subsequently measured at fair value or cost as the case may be. The Company determines the classification of its financial assets after initial recognition and, where allowed and appropriate, re-evaluates this designation at each financial year end.
4.1.2.1 Basis for measurement of available for sale investments
Under the repealed SEC (Insurance) Rules, 2002, the Company previously recorded its "available-for-sale" investments at cost and remeasured them at lower of cost or market value. The Insurance Rules, 2017 require the initial measurement of "available-for-sale" investments at cost with the subsequent remeasurement at fair value at each reporting date. The unrealized gains and losses arising from changes in fair values are directly recognized in equity in the period in which these arise until the investments are sold or determined to be impaired. The said change in accounting policy has been made in accordance with the requirements of IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors".
Consequent to this change, investments as at December 31, 2017 have been increased by Rs. 4,748,388 thousands with a corresponding increase in fair value reserve in equity amounting to Rs. 4,748,388 thousands relating to conventional business and Rs. 7 thousands relating to Window Takaful Operations of the Holding Company. Furthermore, fair value
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
reserve as at December 31, 2016 has increased by Rs. 7,061,520 thousands relating to conventional business and Rs. 121 thousands relating to Window Takaful Operations of the Holding Company. There is no impact of this change on earnings per share of the Group in preceding years.
4.1.2.2 Basis for measurement of held to maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity when the Company has the positive intention and ability to hold to maturity and are initially measured at cost. These are subsequently measured at amortized cost. Investments intended to be held for an undefined period are not included in this classification.
Previously, fixed income securities, such as Fixed Deposits and Treasury Bills, redeemable at a given date were classified under the category “Available-for-sale securities” as per the repealed SEC (Insurance) Rules, 2002. From the financial year starting from January 01, 2018, fixed income securities fall in the scope of IAS 39 and are now re-classified under the category “Held-to-maturity“ investments.
The re-classification does not affect the recognition and measurement criteria and such securities are continued to be measured on amortized cost i.e. where the cost was different from the redemption value, such difference is amortized uniformly over the period between the acquisition date and the date of maturity in determining ‘cost’ at which these investments are stated.
4.1.3 Premium revenue
"The Insurance Accounting Regulations, 2017 remodel the recognition criteria for the premium written under an Insurance Policy. The said regulations require the Company to recognize premium receivable under an Insurance policy / cover note as written from the date of attachment of risk to the policy / cover note. Accordingly, the Company is required to account for cover notes which are effective as at balance sheet date.
As per repealed SEC (Insurance) Rules, 2002, the premium was written under an insurance policy at the time of its issuance. The change is considered to be a change in accounting policy in accordance with IAS 8 “"Accounting Policies, Changes in Accounting Estimates and Errors"". The impact of the same is not considered to be material to the financial statements and accordingly not included in the comparative restated financial information."
5 Use of estimates and judgments
The preparation of this consolidated condensed interim financial information in conformity with the approved accounting standards requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the process of applying the Company's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
During preparation of this consolidated condensed interim financial information, the significant judgments made by the management in applying the Company's accounting policies and the key sources of estimation and uncertainty were the same as those that applied in the preceding audited annual published financial statements of the Company for the year ended 31 December 2017.
6 Functional and presentation currency
This consolidated condensed interim financial information is presented in Pakistani Rupees, which is also the Company’s functional currency.
7 Financial risk management
The Company's financial risk management objectives and policies are consistent with those disclosed in the financial statements for the year ended 31 December 2017.
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
55ADAMJEE INSURANCE
56 FIRST QUARTER REPORT
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)
31 March 2018
Rupees in thousand
31 December 2017
8 Property and equipment
Opening balance - net book value 2,273,084 1,150,358
Additions during the period 39,454 1,273,770
Less:
Book value of disposals during the period (1,449) (12,738)
Depreciation / amortization charged during the period (40,614) (147,796)
Exchange difference 7,707 9,490
(34,356) (151,044)
2,278,182 2,273,084
Capital work in progress 566,610 462,458
2,844,792 2,735,542
Additions during the period:
Land and buildings - 1,040,575
Furniture and fixtures 2,280 47,394
Motor vehicles 13,544 92,057
Machinery and equipments 760 30,931
Computer and related accessories 22,361 29,460
Leasehold Improvements 509 33,353
39,454 1,273,770
Written down values of property and equipment
disposed off during the period
Land and buildings - -
Furniture and fixtures - 41
Motor vehicles 1,396 10,332
Machinery and equipments 53 2,365
Computer and related accessories - -
Leasehold Improvements - -
1,449 12,738
9 Intangible assets
Opening balance - net book value 97,760 102,565
Additions during the period 694 28,144
Less:
Book value of disposals during the period - -
Depreciation / amortization charged during the period (8,620) (34,196)
Exchange difference 864 1,247
(7,756) (32,949)
90,698 97,760
For the Quarter Ended 31 March 2018
8.1
Note
8.2
8.1
8.2
(Unaudited) (Audited)
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)
(Unaudited) (Audited)
Rupees in thousand
31 December 2017
CostImpairment/
provisionCarrying value
31 March 2018
CostImpairment/
provisionCarrying value
Restated
10 Investment in equity securities
For the Quarter Ended 31 March 2018
Available-for-sale
Related parties
Listed shares
Mutual Funds
Unrealized gain
Others
Listed shares
Unlisted shared
NIT Units
Mutual Funds
Unrealized gain
Total
At fair value through profit and loss
Related parties
Listed shares
Mutual Funds
Others
Listed shares
Unlisted shared
NIT Units
Mutual Funds
8,398,717
283,239
6,945,117
925,360
161
160,610
742,722
3,711,283
6,463,411
422,827
(762)
-
(1,098,083)
-
-
-
-
-
-
-
-
-
8,253,568
266,884
7,044,715
925,360
161
234,726
560,534
3,203,547
6,291,804
436,697
-
-
(1,136,392)
-
-
(1,265)
-
-
-
-
-
-
Total
8,397,955
283,239
2,692,308
11,373,502
5,847,034
925,360
161
160,610
6,933,165
3,080,727
10,013,892
21,387,394
742,722
3,711,283
4,454,005
6,463,411
-
-
422,827
6,886,238
11,340,243
8,253,568
266,884
2,220,218
10,740,670
5,908,323
925,360
161
233,461
7,067,305
2,528,170
9,595,475
20,336,145
560,534
3,203,547
3,764,081
6,291,804
-
-
436,697
6,728,501
10,492,582
(Unaudited) (Audited)
Rupees in thousand
31 December 2017
CostImpairment/
provisionCarrying value
31 March 2018
CostImpairment/
provisionCarrying value
-
-
-
-
57ADAMJEE INSURANCE
58 FIRST QUARTER REPORT
11 Investment in debt securities
Available for sale
Treasury Bills
99,335 99,250
Pakistan Investment Bonds
245,104 244,853
344,439 344,103
At fair value through profit and loss
Term Finance Certificate 11.1 1,233,246 857,620
Sukuk Certificates 325,510 355,212
Ijarah sukuks 177,838 250,731
Treasury Bills 3,253,181 3,246,607
Pakistan Investment Bonds 2,156 2,188
4,991,931 4,712,358
Held-to-maturity
Term Finance Certificate 11.1 70,948 70,948
Treasury Bills 655,066 370,884
726,014 441,832
11.1 Term Finance Certificate
At fair value through profit and loss
Askari Bank Limited 25,000 10,000 4,993 125,324 50,057
Bank Al Habib Limited 39,680 10,992 4,996 198,241 54,982
Bank Alfalah Limited 24,023 24,023 4,990 120,715 122,032
Bank of Punjab 2,550 2,550 99,960 258,290 254,643
Habib Bank Limited 590 7,204 99,920 58,481 325,896
Soneri Bank Limited 10,000 10,000 4,995 50,404 50,010
Aspin Pharma Pvt Ltd 820 - 100,000 82,574 -
Dawood Hercules 2,380 - 100,000 239,217 -
International Brands Ltd 1,000 - 100,000 100,000 -
1,233,246 857,620
Held-to-maturity
Pak Electron (Commercial Paper) 75 75 1,000,000 70,948 70,948
70,948 70,948
31 March 2018
Rupees in thousand
31 December 2017
Value of Certificates
31 March 2018 31 December 2017
No of certificatesFace value
(Unaudited) (Audited)
31 March 2018
Rupees in thousand
31 December 2017
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
Note
(Unaudited) (Audited)
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)
12 Loans and other receivables
Considered good
Rent receivable 13,676 6,090
Accrued investment income 453,093 202,838
Security deposits 661,156 489,120
Advances 169,662 131,424
Agent commission receivable 20,147 20,547
Loans to employees 50,882 52,109
Other receivables 492,493 149,019
1,861,109 1,051,147
13 Insurance / reinsurance receivables - unsecured and considered good
Due from insurance contract holders 5,385,441 6,218,998
Less: Provision for impairment of receivables from
insurance contract holders (381,869) (375,801)
5,003,572 5,843,197
Due from other insurers / other reinsurers 1,255,232 1,154,196
Less: Provision for impairment of due from other
insurers / reinsurers (151,302) (151,302)
1,103,930 1,002,894
6,107,502 6,846,091
31 March 2018
Rupees in thousand
31 December 2017
15 Cash and Bank
Cash and cash equivalents
Cash in hand 10,759 14,732
Policy & revenue stamps, bond papers 7,563 7,289
18,322 22,021
Cash at bank
Current accounts 2,709,666 1,534,268
Saving accounts 15.1 807,544 2,073,959
3,517,210 3,608,227 Deposits maturing within 12 months
Fixed and term deposits - Restated 15.1 2,303,341 2,020,494
5,838,873 5,650,742
15.1 These include fixed deposits of the Holding Company amounting to Rs. 217,983 thousands (AED 6,951 thousands) [2017: Rs. 208,736 thousands (AED 6,951 thousands)] kept in accordance with the requirements of Insurance Regulations applicable to the UAE branches for the purpose of carrying on business in United Arab Emirates. These also include liens against cash deposits of Rs. 36,250 thousands (2017: Rs. 106,250 thousands) with banks in Pakistan essentially in respect of guarantees issued by the banks on behalf of the Holding Company for claims under litigation filed against the Holding Company.
For the Quarter Ended 31 March 2018
14 Prepayments
Prepaid reinsurance premium ceded 1,759,176 2,349,147
Prepaid rent 13,571 19,663
Prepaid miscellaneous expenses 201,172 183,688
1,973,919 2,552,498
Note
(Unaudited) (Audited)
59ADAMJEE INSURANCE
60 FIRST QUARTER REPORT
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)
16 Window takaful operations - operator's fund
Assets
Qard-e-Hasna 117,000 117,000
Cash and bank deposits 7,676 41,119
Investments 31,268 30,343
Current assets - others 111,196 30,605
Fixed assets 21,860 22,182
Total Assets 289,000 241,249
Total liabilities - current 174,947 141,312
31 March 2018
Rupees in thousand
31 December 2017
31 March 2018
Rupees in thousand
31 December 2017
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
Wakala Fee 52,862 28,923
Commission expense (13,056) (5,748)
Management expense (21,051) (8,437)
Net Investment income 1,055 142
Profit from Window Takaful Operations 19,810 14,880
17 Reserves
Capital reserves
Reserves for exceptional losses 22,859 22,859
Investment fluctuation reserves 3,764 3,764
Exchange translation reserves 489,493 467,100
516,116 493,723Revenue reserves
General reserves 936,500 936,500
Fair value reserve 5,769,427 4,748,516
6,705,927 5,685,016
7,222,043 6,178,739
Details of total assets, total liabilities and segment disclosure of window takaful operations are stated in the annexed condensed interim financial information for the quarter ended 31 March 2018.
18 Contingencies and commitments
Contingencies
Holding Company
There has been no significant change in the contingencies since the date of preceding published consolidated annual financial statements.
Subsidiary Company
The Subsidiary Company has contingent liabilities in respect of death claims in the ordinary course of business amounting to Rs. 17,708 thousands (2017: Rs. 27,213 thousands). The management of the Subsidiary Company is confident that no provision in respect of these items is required to be made in the financial statements.
There has been no other significant change in the contingencies since the date of preceding published consolidated annual financial statements.
For the Quarter Ended 31 March 2018
Restated(Unaudited) (Audited)
(Unaudited)
(Unaudited) (Audited)
Restated
(Unaudited)
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)
(Unaudited) (Unaudited)
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
19 Net Insurance Premium
Written Gross Premium 6,311,611 6,689,320Add: Unearned premium reserve opening 8,912,498 7,349,511Less: Unearned premium reserve closing 8,136,283 7,619,658Add: Currency translation effect 149,516 1,220
Premium earned 7,237,342 6,420,393
Less: Reinsurance premium ceded 1,011,423 1,408,540 Add: Prepaid reinsurance premium opening 2,349,147 2,356,182Less: Prepaid reinsurance premium closing 1,759,176 2,175,511Add: Currency translation effect 4,812 141
Reinsurance expense 1,606,206 1,589,352
5,631,136 4,831,041
19.1 Net Insurance Premium - Business underwritten inside Pakistan
General Insurance
Written Gross Premium 2,506,526 2,830,321Add: Unearned premium reserve opening 5,186,518 4,515,372Less: Unearned premium reserve closing 4,740,133 4,442,587
Premium earned 2,952,911 2,903,106
Less: Reinsurance premium ceded 820,460 1,104,584Add: Prepaid reinsurance premium opening 2,079,920 1,922,263Less: Prepaid reinsurance premium closing 1,705,069 1,765,932
Reinsurance expense 1,195,311 1,260,915
1,757,600 1,642,191
Life Insurance
Gross premiumsRegular premium insurance policies
First year 555,255 237,428Second year renewal 472,261 210,519Subsequent years renewal 703,651 376,843
Single premium insurance policies 726,397 1,092,835Group policies without cash values 159,881 93,057Total gross premiums 2,617,445 2,010,682
Less: Reinsurance premiums cededon individual life first year business 11,837 14,177on individual life second year business 11,377 6,519on individual life subsequent renewal business 19,930 12,848on single premium individual policies - -on group policies 90,360 52,289
133,504 85,833
Net Premiums2,483,941 1,924,849
For the Quarter Ended 31 March 2018
Commitments
Holding Company
The Holding Company has issued letter of gurantees amounting to Rs. 6,869 thousands (AED 219,000) [2017: 24,992 thousands (AED 832,250)] relating to its UAE branch.
Subsidiary Company
Commitments in respect of ljarah rentals payable in future period as at 31 March 2018 amounted to Rs. 29,210 thousands (2017: Rs. 31,781 thousands) for vehicles. Commitment in respect of capital expenditure amounting to Rs. 23,776 thousands (2017: Rs. 33,900 thousands)
61ADAMJEE INSURANCE
62 FIRST QUARTER REPORT
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)
19.2 Net Insurance Premium - Business underwritten outside Pakistan
Written Gross Premium 1,848,317
Add: Unearned premium reserve opening 2,834,139
Less: Unearned premium reserve closing 3,177,071
Add: Currency translation effect 1,220
Premium earned 1,506,605
Less: Reinsurance premium ceded 218,123
Add: Prepaid reinsurance premium opening 433,919
Less: Prepaid reinsurance premium closing 409,579
Add: Currency translation effect 141
Reinsurance expense 242,604
1,187,640
3,725,980
3,396,150
149,516
1,666,986
57,459
269,227
54,107
4,812
277,391
1,389,595 1,264,001
(Unaudited) (Unaudited)
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
20 Net Insurance Claims Expense
Claims Paid 4,366,872 2,800,316
Add: Outstanding claims including IBNR closing 11,426,866 10,024,986
Less: Outstanding claims including IBNR opening 11,485,744 9,475,718
Less: Currency translation effect 201,209 1,593
Claims expense 4,106,785 3,347,991
Less: Reinsurance and other recoveries received 1,102,706 593,122
Add: Reinsurance and other recoveries in respect
of outstanding claims net of impairment (if any) closing 7,917,116 6,950,610
Less: Reinsurance and other recoveries in respect
of outstanding claims net of impairment (if any) opening 8,056,450 6,615,596
Less: Currency translation effect 113,346 953
Reinsurance and other recoveries revenue 850,026 927,183
3,256,759 2,420,808
Add: Policyholders' liabilities at end of the period 29,309,715 22,584,097
Less: Policyholders' liabilities at beginning of the period 27,096,071 21,251,296
2,213,644 1,332,801
5,470,403 3,753,609
For the Quarter Ended 31 March 2018
63ADAMJEE INSURANCE
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)
(Unaudited) (Unaudited)
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
20.1 Net Insurance Claims Expense - Business underwritten inside Pakistan
General Insurance
Claims Paid 1,430,972 863,531
Add: Outstanding claims including IBNR closing 6,630,290 5,623,831
Less: Outstanding claims including IBNR opening 7,084,282 5,480,119
Claims expense 976,980 1,007,243
Less: Reinsurance and other recoveries received 510,256 65,399
Add: Reinsurance and other recoveries in respect
of outstanding claims net of impairment (if any) closing 5,205,590 4,318,051
Less: Reinsurance and other recoveries in respect
of outstanding claims net of impairment (if any) opening 5,602,812 4,220,537
Reinsurance and other recoveries revenue 113,034 162,913
863,946 844,330
Life Insurance
Gross Claims
Claims under individual policies
by death 106,618 36,767
by insured event other than death - 2,667
by maturity 266,854 53,510
by surrender 1,036,667 516,096
Total gross individual policy claims 1,410,139 609,040
Claims under group policies
by death 137,543 70,184
by insured event other than death 7,469 9,842
experience refund 4,291 3,829
Total gross group policy claims 149,303 83,855
Total gross policy claims 1,559,442 692,895
Less: Reinsurance recoveries
on individual claims 35,259 16,783
on group claims 78,601 66,045
113,860 82,828
1,445,582 610,067
Add: Policyholders' liabilities at end of the period 29,309,715 22,413,445
Less: Policyholders' liabilities at beginning of the period 27,096,071 21,251,296
2,213,644 1,162,149
Net insurance benefit expense 3,659,226 1,772,216
For the Quarter Ended 31 March 2018
64 FIRST QUARTER REPORT
20.2 Net Insurance Claims Expense - Business underwritten outside Pakistan
Claims Paid 1,376,458 1,243,890
Add: Outstanding claims including IBNR closing 4,796,576 4,401,155
Less: Outstanding claims including IBNR opening 4,401,462 3,995,599
Less: Currency translation effect 201,209 1,593
Claims expense 1,570,363 1,647,853
Less: Reinsurance and other recoveries received 478,590 444,895
Add: Reinsurance and other recoveries in respect
of outstanding claims net of impairment (if any) closing 2,711,526 2,632,559
Less: Reinsurance and other recoveries in respect
of outstanding claims net of impairment (if any) opening 2,453,638 2,395,059
Less: Currency translation effect 113,346 953
Reinsurance and other recoveries revenue 623,132 681,442
947,231 966,411
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
(Unaudited) (Unaudited)
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
21 Net Commission Expense / Acquisition Cost
Commission Paid or payable 592,953
774,621
Add: Deferred Commission expense opening 733,631
737,281
Less: Deferred Commission expense closing 614,722
777,693
Add: Currency translation effect 15,987
135
Net Commission 727,849
734,344
Less: Commission received or recoverable 90,331
135,673
Add: unearned reinsurance commission 240,306
236,881
Less: unearned reinsurance commission 195,862
223,588
Add: Currency translation effect 371
11
135,146
148,977
Branch overheads 46,588
25,582
Other acquisition costs 9,708
6,658
648,999
617,607
65ADAMJEE INSURANCE
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
21.1 Net Commission Expense / Acquisition Cost - Business underwritten inside Pakistan
General Insurance
Commission Paid or payable 153,513 224,303 Add: Deferred Commission expense opening 326,325 398,331 Less: Deferred Commission expense closing 254,852 403,118
Net Commission 224,986 219,516
Less: Commission received or recoverable 88,185 116,150
Add: unearned reinsurance commission 227,726 202,685
Less: unearned reinsurance commission 188,720
192,395
127,191
126,440
97,795
93,076
Life Insurance
Acquisition costs
Remuneration to insurance intermediaries on individual policies:
- commission on first year premiums 251,447
219,935
- commission on second year premiums 24,598
26,456
- commission on subsequent years renewal premiums 16,320
14,366
- commission on single premiums 16,560
25,111
- other benefits to insurance intermediaries (2,053)
41,910
306,872
327,778
Remuneration to insurance intermediaries on group policies:
- commission 6,684
8,509
- other benefits to insurance intermediaries -
537
313,556
336,824
Branch overheads 46,588
25,582
Other acquisition costs:
- policy stamps 9,070 6,358
- medical examination fee 638 300
- others - -
9,708 6,658
369,852 369,064
(Unaudited) (Unaudited)
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
66 FIRST QUARTER REPORT
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
(Unaudited) (Unaudited)
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
21.2 Net Commission Expense / Acquisition Cost - Business underwritten outside Pakistan
Commission Paid or payable 125,884 213,494
Add: Deferred Commission expense opening 407,306 338,950
Less: Deferred Commission expense closing 359,870 374,575
Add: Currency translation effect 15,987 135
Net Commission 189,307 178,004
Less: Commission received or recoverable 2,146 19,523
Add: unearned reinsurance commission 12,580 34,196
Less: unearned reinsurance commission 7,142 31,193
Add: Currency translation effect 371 11
7,955 22,537
181,352 155,467
22 Investment Income
Business underwritten Inside Pakistan
General insurance:
Available-for-sale
Income from equity securities
Dividend income
- associated undertakings 191,111 174,021
- others 192,412 315,513
383,523 489,534
Income from debt securities - Held to maturity
Return on Term Finance Certificates 1,351 1,425
Return on Pakistan Investment Bonds - 5,846
Profit on Treasury Bills 6,827 2,350
391,701 499,155
Net realized gains/ (losses) on investments
Realized gains on
- associated undertakings - -
- others 104,215 117,149
104,215 117,149
495,916 616,304
Reversal of impairment in value of
'available-for-sale' investments 37,012 -
532,928 616,304
67ADAMJEE INSURANCE
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
Life insurance:
Share holders' fund
Unrealized diminution in value of quoted securities (52)
Return on Government Securities 1,542
-
-
-
3,146
Return on bank deposit 323 530
Dividend income 677
Gain on disposal of non trading investments 3,186 722
Provision for impairment in value of
'available-for-sale investments' (7)
5,051 5,016
Statutory Funds:
Conventional Business
Unrealized appreciation in value of quoted securities 4,166 -
Return on Government Securities 2,435 1,950
Return on bank deposits 1,429 1,680
Gain on disposal of open-end non trading investments - 275 Provision for impairment in value of
'available-for-sale' investments - (26)
(Unaudited) (Unaudited)
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
8,030 3,879
Accident and Health Business
Return on bank deposits - 1
- 1
Non-unitized Investment Link Business
Appreciation in value of quoted securities 101,289 25,089
Return on fixed income securities 2,776 1,325
Return on Government Securities 10,570 28,694
Return on bank deposits 15,780 4,131
Mark-up on policy loans 393 302
Dividend income 5,216 929
Gain on disposal of trading investments 10,920 3,052
Provision for impairment in value of
'available-for-sale' investments - -
146,944 63,522
68 FIRST QUARTER REPORT
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
(Unaudited) (Unaudited)
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
Unit Linked Business
Appreciation in value of quoted securities 806,894 174,723
Appreciation in value of investment property 47,019 -
Mark-up on policy loans 169 86Return on Government Securities 121,822 222,559
Return on fixed income securities 27,178 3,949
Dividend income 65,718 20,929
Investment income on bank deposits 83,930 16,890Gain on disposal of trading investments 549,860 60,211
Provision for impairment in value of
'available-for-sale' investments (1,623)-
1,702,590 497,724
Individual Family Takaful Unit Linked Business
Appreciation in value of quoted securities 36,517 3,726
Return on Government Securities 3,082 (51)
Return on fixed income securities 1,201 -
Dividend income 4,459 -
Investment income on bank deposits 5,470 237
Gain/(Loss) on sale of disposal of trading investments 23,969 379
74,698 4,291
Business underwritten Outside Pakistan
Available-for-sale
Income from equity securities
Dividend income- 8,518
Net realized gains on investments- 51,026
- 59,544
2,470,241 1,250,281
Net investment income
Net investment income - statutory funds 1,932,262 569,417
Net investment income - other 537,979 680,864
2,470,241 1,250,281
23 Earnings per share - basic and diluted
There is no dilutive effect on the basic earnings per share which is based on:
Net profit aster tax for the period 658,494 683,157
Weighted average number of shares 350,000,000 350,000,000
Basic earnings per share 1.88 1.95
Rupees
Number of shares
69ADAMJEE INSURANCE
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
(Unaudited) (Audited)
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
31 March 2018
Rupees in thousand
31 December 2017
24 Transactions with related parties
The Company has related party relationships with its associates, subsidiary company, employee retirement benefit plans, key management personnel and other parties. Transactions are entered into with such related parties for the issuance of policies to and disbursements of claims incurred by them and payments of rentals for the use of premises rented from them. There are no transactions with key management personnel other than those specified in their terms of employment.
Investment in related parties have been disclosed in note 9 & 10 to the consolidated condensed interim financial information. Other transactions with related parties are summarized as follows:
i) Transactions
Premiums underwritten 251,406 218,123
Premiums received 533,164 295,390
Claims expense 27,944 -
Claims paid 145,407 130,451
Rent paid 1,309 1,283
Rent received - 1,613
Rental charges 1,821 -
Dividend income 280 4,420
Commission and other incentives
in respect of Bancassurance 228,042 4,405
Income on bank deposits 17,894 17,779
Fee / service charges paid 9,261 352
Investments made 733,242 3,874,275
Investments sold 493,433 3,096,405
Other expense 2,776 -
Charge in respect of gratuity expense 8,164 4,733
Contribution to Employees'
Provident Fund 7,638 7,091
Compensation paid to Key
management personnel 256,543 238,197
ii) Period end balances
Balances receivable 229,706 532,975
Balances payable 1,892,870 2,041,271
Cash and bank balances 1,409,162 2,395,788
Payable to Staff Gratuity Fund 89,655 84,442
Payable to Employees' Provident Fund 2,354 2,325
Receivable from Gratuity fund 39,833 12,152
(Unaudited) (Unaudited)
70 FIRST QUARTER REPORT
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
25Se
gmen
t In
form
atio
n
31 December 2017-Restated
Prem
ium
rece
ivabl
e (In
clusiv
e of
fede
ral e
xice
duty,
Fede
ral in
sura
nce
fee a
nd A
dmini
stra
tive
surc
harg
e)92
4,29
710
,550
252,
155
6,58
081
8,48
61,
224,
637
461,
307
1,34
833
9,80
05,
636
2,79
6,04
51,
248,
751
4,04
4,79
6-
159,
880
-58
,256
2,13
3,14
426
6,16
52,
617,
445
6,66
2,24
1
Less
:Fe
dera
l exc
ise d
uty
117,
286
588
28,1
6725
297
,249
59,8
86-
6422
,037
302
264,
739
61,0
9232
5,83
1-
--
--
--
325,
831
Fede
ral in
sura
nce
fee8,
009
92,
217
57,
148
-4,
567
2,84
05
24,7
8119
24,8
00-
--
--
--
24,8
00
799,
002
9,95
322
1,77
26,
323
714,
089
1,16
4,75
145
6,74
01,
284
314,
923
5,32
92,
506,
526
1,18
7,64
03,
694,
166
-15
9,88
0-
58,2
562,
133,
144
266,
165
2,61
7,44
56,
311,
611
Gros
s writ
ten
prem
ium (in
clusiv
e of
adm
inist
rativ
e su
rcha
rge)
799,
002
9,95
322
1,77
26,
323
714,
089
1,16
4,75
145
6,74
01,
284
314,
923
5,32
92,
506,
526
1,18
7,64
03,
694,
166
-15
9,88
0-
58,2
562,
133,
144
266,
165
2,61
7,44
56,
311,
611
Gros
s dire
ct p
rem
ium79
5,79
69,
927
216,
453
6,28
569
1,17
51,
097,
691
456,
543
1,28
428
1,11
55,
319
2,44
1,08
21,
120,
506
3,56
1,58
8-
159,
880
-58
,256
2,13
3,14
426
6,16
52,
617,
445
6,17
9,03
3
Facu
ltativ
e inw
ard
prem
ium
(322
)-
65-
--
--
30,9
99-
30,7
42-
30,7
42-
--
--
--
30,7
42
Adm
inist
rativ
e su
rcha
rge
3,52
826
5,25
438
22,9
1467
,060
197
2,80
910
34,7
0267
,134
101,
836
--
--
--
-10
1,83
6
799,
002
9,95
322
1,77
26,
323
714,
089
1,16
4,75
145
6,74
01,
284
314,
923
5,32
92,
506,
526
1,18
7,64
03,
694,
166
-15
9,88
0-
58,2
562,
133,
144
266,
165
2,61
7,44
56,
311,
611
Insu
ranc
e pr
emium
ear
ned
1,19
8,42
811
,016
226,
527
20,4
2466
5,79
01,
629,
331
448,
917
3,25
341
3,24
92,
962
2,95
2,91
11,
666,
986
4,61
9,89
7-
159,
880
-58
,256
2,13
3,14
426
6,16
52,
617,
445
7,23
7,34
2
Insu
ranc
e pr
emium
cede
d to
reins
urer
s(9
70,4
28)
(6,7
27)
(32,
942)
-(9
,776
)(2
66,3
08)
-30
9(1
82,1
65)
(4,6
65)
(1,1
95,3
11)
(277
,391
)(1
,472
,702
)-
(90,
360)
-(9
38)
(39,
328)
(2,8
78)
(133
,504
)(1
,606
,206
)
Net i
nsur
ance
pre
miu
m22
8,00
04,
289
193,
585
20,4
2465
6,01
41,
363,
023
448,
917
3,56
223
1,08
4(1
,703
)1,
757,
600
1,38
9,59
53,
147,
195
-69
,520
-57
,318
2,09
3,81
626
3,28
72,
483,
941
5,63
1,13
6
Com
miss
ion in
come
87,8
432,
435
142
-4
5,33
0-
-39
,202
190
127,
191
7,95
513
5,14
6-
--
--
--
135,
146
Net u
nder
writ
ing
inco
me
315,
843
6,72
419
3,72
720
,424
656,
018
1,36
8,35
344
8,91
73,
562
270,
286
(1,5
13)
1,88
4,79
11,
397,
550
3,28
2,34
1-
69,5
20-
57,3
182,
093,
816
263,
287
2,48
3,94
15,
766,
282
Insu
ranc
e cla
ims
(58,
479)
(91)
(37,
031)
(129
)(3
28,3
51)
(1,5
69,5
26)
(390
,650
)(6
17)
(162
,469
)-
(976
,980
)(1
,570
,363
)(2
,547
,343
)-
(151
,160
)-
(43,
065)
(1,2
61,3
49)
(103
,868
)(1
,559
,442
)(4
,106
,785
)
Insu
ranc
e cla
im re
cove
ries f
rom
reins
urer
(23,
569)
(2,5
45)
(8,6
87)
-42
,671
623,
939
-1,
738
102,
619
-11
3,03
462
3,13
273
6,16
6-
78,6
01-
(2,0
07)
37,2
66-
113,
860
850,
026
Net c
laim
s(8
2,04
8)(2
,636
)(4
5,71
8)(1
29)
(285
,680
)(9
45,5
87)
(390
,650
)1,
121
(59,
850)
-(8
63,9
46)
(947
,231
)(1
,811
,177
)-
(72,
559)
-(4
5,07
2)(1
,224
,083
)(1
03,8
68)
(1,4
45,5
82)
(3,2
56,7
59)
Com
miss
ion e
xpen
se(9
5,08
9)(1
,436
)(3
0,89
3)(1
,334
)(4
7,57
6)(1
85,8
88)
(8,9
19)
(365
)(4
2,50
9)(2
84)
(224
,986
)(1
89,3
07)
(414
,293
)-
(6,9
92)
-1,
897
(292
,102
)(7
2,65
5)(3
69,8
52)
(784
,145
)
Man
agem
ent e
xpen
se(6
7,21
5)(1
49)
(49,
254)
(1,1
51)
(165
,562
)(1
21,3
37)
(36,
548)
(1,0
74)
(42,
434)
(1,1
34)
(361
,013
)(1
24,8
45)
(485
,858
)-
(20,
923)
-(3
,833
)(2
06,5
71)
(37,
218)
(268
,545
)(7
54,4
03)
Prem
ium
defi
cienc
y exp
ense
--
--
--
--
--
--
--
--
--
--
-
Net i
nsur
ance
cla
ims
and
expe
nses
(244
,352
)(4
,221
)(1
25,8
65)
(2,6
14)
(498
,818
)(1
,252
,812
)(4
36,1
17)
(318
)(1
44,7
93)
(1,4
18)
(1,4
49,9
45)
(1,2
61,3
83)
(2,7
11,3
28)
-(1
00,4
74)
-(4
7,00
8)(1
,722
,756
)(2
13,7
41)
(2,0
83,9
79)
(4,7
95,3
07)
Net I
nves
tmen
t inc
ome
- sta
tuto
ry fu
nds
--
--
--
--
--
--
--
8,03
0-
146,
944
1,70
2,59
074
,698
1,93
2,26
21,
932,
262
Polic
yhol
ders
' liab
ilities
at b
eginn
ing o
f the
per
iod-
--
--
--
--
--
--
-11
9,06
4-
2,43
4,66
323
,433
,236
1,10
9,10
827
,096
,071
27,0
96,0
71
Polic
yhol
ders
' liab
ilities
at e
nd o
f the
per
iod-
--
--
--
--
--
--
-(9
6,43
0)-
(2,5
53,8
00)
(25,
429,
311)
(1,2
30,1
74)
(29,
309,
715)
(29,
309,
715)
Surp
lus /
(defi
cit) o
f Pol
icyho
lder
s' fu
nds
--
--
--
--
--
--
--
290
-(3
8,11
7)(7
7,57
5)(3
,178
)(1
18,5
80)
(118
,580
)
Unde
rwrit
ing
resu
lt71
,491
2,50
367
,862
17,8
1015
7,20
011
5,54
112
,800
3,24
412
5,49
3(2
,931
)43
4,84
613
6,16
757
1,01
3-
--
--
--
571,
013
Net i
nves
tmen
t inc
ome
532,
928
-53
2,92
85,
051
537,
979
Rent
al in
com
e2,
515
-2,
515
-2,
515
Othe
r inc
ome
14,0
4418
,526
32,5
70-
32,5
70
Othe
r exp
ense
s(1
31,7
85)
(58,
427)
(190
,212
)(9
,857
)(2
00,0
69)
Exch
ange
gain
1,69
6-
1,69
6-
1,69
6
Profi
t fro
m W
indow
Taka
ful O
pera
tions
19,8
10-
19,8
10-
19,8
10
Wor
kers
' Wel
fare
Fun
d(1
9,40
6)-
(19,
406)
-(1
9,40
6)
Profi
t bef
ore
tax
854,
648
96,2
6695
0,91
4(4
,806
)94
6,10
8
Segm
ent A
sset
s6,
574,
300
74,7
1859
5,03
414
,641
1,22
7,73
95,
380,
666
681,
400
12,9
031,
745,
646
21,0
6710
,824
,119
5,50
3,99
516
,328
,114
534,
007
431,
397
167
2,75
0,84
726
,447
,471
1,36
1,08
831
,524
,977
47,8
53,0
91
Unal
loca
ted
asse
ts27
,108
,742
3,76
1,53
330
,870
,275
-30
,870
,275
37,9
32,8
619,
265,
528
47,1
98,3
8931
,524
,977
78,7
23,3
66
Segm
ent L
iabi
litie
s6,
781,
683
82,9
5456
0,20
66,
853
2,40
8,13
98,
093,
638
1,65
0,60
515
,363
2,03
9,03
014
,625
13,4
39,6
638,
213,
433
21,6
53,0
96(9
2,43
3)18
0,74
144
48,7
6179
2,95
164
,863
994,
927
22,6
48,0
23
Unal
loca
ted
Liab
ilitie
s2,
508,
866
504,
216
3,01
3,08
2-
3,01
3,08
2
15,9
48,5
298,
717,
649
24,6
66,1
7899
4,92
725
,661
,105
Insi
de
Paki
stan
O
utsi
de
Paki
stan
In
side
Pa
kist
an
Out
side
Pa
kist
an
Insi
de
Paki
stan
O
utsi
de
Paki
stan
In
side
Pa
kist
an
Out
side
Pa
kist
an
Insi
de
Paki
stan
O
utsi
de
Paki
stan
In
side
Pa
kist
an
Out
side
Pa
kist
an
Conv
enti
onal
Bus
ines
s
Non
-Uni
tized
In
vest
men
t Li
nk B
usin
ess
Uni
t Li
nked
B
usin
ess
Acci
dent
and
H
ealt
h B
usin
ess
Indi
vidu
al
Fam
ily
Taka
ful U
nit
Link
ded
Bus
ines
s
Qua
rter
end
ed 3
1 M
arch
201
8
Rupe
es in
tho
usan
ds
Agg
rega
te
Life
In
sura
nce
Gra
nd T
otal
Life
Insu
ranc
e
Shar
ehol
ders
' Fu
nd
Fire
and
pro
pert
y da
mag
eM
arin
e, a
viat
ion
and
tran
spor
tM
otor
Hea
lth
Mis
cella
neou
sTo
tal
Agg
rega
te
Gen
eral
In
sura
nce
Insi
de
Paki
stan
O
utsi
de
Paki
stan
In
side
Pa
kist
an
Out
side
Pa
kist
an
Insi
de
Paki
stan
O
utsi
de
Paki
stan
In
side
Pa
kist
an
Out
side
Pa
kist
an
Insi
de
Paki
stan
O
utsi
de
Paki
stan
In
side
Pa
kist
an
Out
side
Pa
kist
an
Conv
enti
onal
Bus
ines
s
Non
-Uni
tized
In
vest
men
t Li
nk B
usin
ess
Uni
t Li
nked
B
usin
ess
Acci
dent
and
H
ealt
h B
usin
ess
Indi
vidu
al
Fam
ily
Taka
ful U
nit
Link
ded
Bus
ines
s
31 M
arch
201
8
Rupe
es in
tho
usan
ds
Agg
rega
te
Life
In
sura
nce
Gra
nd T
otal
Life
Insu
ranc
e
Shar
ehol
ders
' Fu
nd
Fire
and
pro
pert
y da
mag
eM
arin
e, a
viat
ion
and
tran
spor
tM
otor
Hea
lth
Mis
cella
neou
sTo
tal
Agg
rega
te
Gen
eral
In
sura
nce
71ADAMJEE INSURANCE
Prem
ium
rece
ivabl
e (In
clus
ive o
f fed
eral
exic
e du
ty,
Fede
ral i
nsur
ance
fee
and
Adm
inist
rativ
e su
rcha
rge)
1,23
2,35
012
,337
285,
088
9,41
774
2,41
11,
820,
687
568,
917
-32
9,97
85,
876
3,15
8,74
31,
848,
317
5,00
7,06
0-
93,5
91-
98,3
431,
695,
470
123,
278
2,01
0,68
27,
017,
742
Less
:Fe
dera
l exc
ise d
uty
154,
369
-32
,420
-87
,826
--
-25
,398
-30
0,01
3-
300,
013
--
--
--
-30
0,01
3
Fede
ral i
nsur
ance
fee
10,7
69-
2,50
6-
6,48
2-
5,63
3-
3,01
8-
28,4
09-
28,4
09-
--
--
--
28,4
09
1,06
7,21
212
,337
250,
161
9,41
764
8,10
21,
820,
687
563,
284
-30
1,56
25,
876
2,83
0,32
11,
848,
317
4,67
8,63
8-
93,5
91-
98,3
431,
695,
470
123,
278
2,01
0,68
26,
689,
320
Gros
s wr
itten
pre
miu
m (i
nclu
sive
of
adm
inist
rativ
e su
rcha
rge)
1,06
7,21
212
,337
250,
161
9,41
764
8,10
21,
820,
687
563,
284
-30
1,56
25,
876
2,83
0,32
11,
848,
317
4,67
8,63
8-
93,5
91-
98,3
431,
695,
470
123,
278
2,01
0,68
26,
689,
320
Gros
s di
rect
pre
miu
m1,
062,
726
12,3
3724
5,17
69,
417
627,
792
1,82
0,68
756
3,15
8-
298,
561
5,87
62,
797,
412
1,84
8,31
74,
645,
729
-93
,591
-98
,343
1,69
5,47
012
3,27
82,
010,
682
6,65
6,41
1
Facu
ltativ
e in
war
d pr
emiu
m65
5-
--
--
--
--
655
-65
5-
--
--
--
655
Adm
inist
rativ
e su
rcha
rge
3,83
1-
4,98
6-
20,3
10-
126
-3,
001
-32
,254
-32
,254
--
--
--
-32
,254
1,06
7,21
212
,337
250,
161
9,41
764
8,10
21,
820,
687
563,
284
-30
1,56
25,
876
2,83
0,32
11,
848,
317
4,67
8,63
8-
93,5
91-
98,3
431,
695,
470
123,
278
2,01
0,68
26,
689,
320
Insu
ranc
e pr
emiu
m e
arne
d1,
294,
538
15,1
3125
2,36
719
,761
556,
666
1,46
5,36
242
9,62
1-
369,
914
6,35
12,
903,
106
1,50
6,60
54,
409,
711
-93
,591
-98
,343
1,69
5,47
012
3,27
82,
010,
682
6,42
0,39
3
Insu
ranc
e pr
emiu
m ce
ded
to re
insu
rers
(1,0
62,6
97)
(8,9
89)
(62,
742)
-(8
,710
)(2
29,1
15)
-41
8(1
26,7
66)
(4,9
18)
(1,2
60,9
15)
(242
,604
)(1
,503
,519
)-
(52,
318)
-(1
,755
)(3
1,30
5)(4
55)
(85,
833)
(1,5
89,3
52)
Net i
nsur
ance
pre
miu
m23
1,84
16,
142
189,
625
19,7
6154
7,95
61,
236,
247
429,
621
418
243,
148
1,43
31,
642,
191
1,26
4,00
12,
906,
192
-41
,273
-96
,588
1,66
4,16
512
2,82
31,
924,
849
4,83
1,04
1
Com
miss
ion
inco
me
104,
897
1,69
228
3-
219
,554
--
21,2
581,
291
126,
440
22,5
3714
8,97
7-
--
--
--
148,
977
Net
und
erw
ritin
g in
com
e33
6,73
87,
834
189,
908
19,7
6154
7,95
81,
255,
801
429,
621
418
264,
406
2,72
41,
768,
631
1,28
6,53
83,
055,
169
-41
,273
-96
,588
1,66
4,16
512
2,82
31,
924,
849
4,98
0,01
8
Insu
ranc
e cl
aim
s(1
61,2
09)
(10,
814)
(93,
273)
(2,5
11)
(281
,801
)(1
,631
,293
)(3
63,7
04)
(3,5
88)
(107
,256
)35
3(1
,007
,243
)(1
,647
,853
)(2
,655
,096
)-
(87,
276)
-(4
3,25
5)(5
61,8
66)
(497
)(6
92,8
94)
(3,3
47,9
90)
Insu
ranc
e cl
aim
reco
verie
s fro
m re
insu
rer
125,
300
10,2
8019
,273
-9,
064
669,
097
-2,
408
9,27
6(3
43)
162,
913
681,
442
844,
355
-66
,044
-1,
632
15,1
51-
82,8
2792
7,18
2
Net c
laim
s(3
5,90
9)(5
34)
(74,
000)
(2,5
11)
(272
,737
)(9
62,1
96)
(363
,704
)(1
,180
)(9
7,98
0)10
(844
,330
)(9
66,4
11)
(1,8
10,7
41)
-(2
1,23
2)-
(41,
623)
(546
,715
)(4
97)
(610
,067
)(2
,420
,808
)
Com
miss
ion
expe
nse
(113
,847
)(2
,480
)(3
3,58
1)(6
07)
(46,
914)
(174
,526
)(8
,535
)(7
3)(1
6,63
9)(3
18)
(219
,516
)(1
78,0
04)
(397
,520
)-
(9,3
52)
-(2
,651
)(3
44,6
59)
(12,
402)
(369
,064
)(7
66,5
84)
Man
agem
ent e
xpen
se(6
2,41
1)(5
66)
(49,
924)
(320
)(1
42,4
69)
(89,
955)
(32,
222)
(290
)(4
2,53
2)(1
92)
(329
,558
)(9
1,32
3)(4
20,8
81)
-(8
,654
)-
(6,4
82)
(120
,198
)(7
,135
)(1
42,4
69)
(563
,350
)
Prem
ium
defi
cienc
y exp
ense
--
--
--
--
--
--
--
--
--
--
-
Net
insu
ranc
e cl
aim
s an
d ex
pens
es(2
12,1
67)
(3,5
80)
(157
,505
)(3
,438
)(4
62,1
20)
(1,2
26,6
77)
(404
,461
)(1
,543
)(1
57,1
51)
(500
)(1
,393
,404
)(1
,235
,738
)(2
,629
,142
)-
(39,
238)
-(5
0,75
6)(1
,011
,572
)(2
0,03
4)(1
,121
,600
)(3
,750
,742
)
Net I
nves
tmen
t inc
ome
- sta
tuto
ry fu
nds
--
--
--
--
--
--
--
3,87
91
63,5
2249
7,72
44,
291
569,
417
569,
417
Polic
yhol
ders
' lia
bilit
ies
at b
egin
ning
of t
he p
erio
d-
--
--
--
--
--
--
-11
0,75
6-
2,37
0,72
318
,383
,848
385,
969
21,2
51,2
9621
,251
,296
Polic
yhol
ders
' lia
bilit
ies
at e
nd o
f the
per
iod
--
--
--
--
--
--
--
(104
,894
)-
(2,4
79,2
20)
(19,
489,
624)
(510
,359
)(2
2,58
4,09
7)(2
2,58
4,09
7)
Surp
lus
/ (de
ficit)
of P
olicy
hold
ers'
fund
s-
--
--
--
--
--
--
-(1
1,77
6)(1
)(8
57)
(44,
541)
17,3
10(3
9,86
5)(3
9,86
5)
Unde
rwrit
ing
resu
lt12
4,57
14,
254
32,4
0316
,323
85,8
3829
,124
25,1
60(1
,125
)10
7,25
52,
224
375,
227
50,8
0042
6,02
7-
--
--
--
426,
027
Net i
nves
tmen
t inc
ome
616,
304
59,5
4467
5,84
85,
016
680,
864
Rent
al in
com
e-
1,61
31,
613
-1,
613
Othe
r inc
ome
32,0
961,
586
33,6
822,
176
35,8
58
Othe
r exp
ense
s(1
20,5
90)
(38,
757)
(159
,347
)(4
,863
)(1
64,2
10)
Exch
ange
gai
n24
5-
245
-24
5
Profi
t fro
m W
indo
w T
akaf
ul O
pera
tions
14,8
80-
14,8
80-
14,8
80
Wor
kers
' Wel
fare
Fun
d(1
9,86
2)-
(19,
862)
-(1
9,86
2)
Profi
t be
fore
tax
898,
300
74,7
8697
3,08
62,
329
975,
415
Segm
ent A
sset
s8,
024,
165
68,6
9659
4,84
414
,374
1,09
9,83
15,
467,
973
744,
815
10,6
431,
870,
256
14,5
9912
,333
,911
5,57
6,28
517
,910
,196
669,
962
386,
885
167
2,63
8,35
924
,530
,798
1,23
2,09
629
,458
,269
47,3
68,4
65
Unal
loca
ted
asse
ts25
,034
,896
3,39
5,66
828
,430
,564
-28
,430
,564
37,3
68,8
078,
971,
953
46,3
40,7
6029
,458
,269
75,7
99,0
29
Segm
ent L
iabi
litie
s8,
062,
465
83,5
3359
6,02
522
,095
2,38
6,66
48,
369,
197
1,70
9,15
617
,688
2,17
2,36
311
,597
14,9
26,6
738,
504,
110
23,4
30,7
8313
4,54
115
8,53
144
48,1
1289
1,17
446
,691
1,27
9,09
324
,709
,876
Unal
loca
ted
Liab
ilitie
s1,
992,
216
69,9
532,
062,
169
-2,
062,
169
16,9
18,8
898,
574,
063
25,4
92,9
521,
279,
093
26,7
72,0
45
25
.1S
eg
men
t In
form
ati
on
Insi
de
Paki
stan
O
utsi
de
Paki
stan
In
side
Pa
kist
an
Out
side
Pa
kist
an
Insi
de
Paki
stan
O
utsi
de
Paki
stan
In
side
Pa
kist
an
Out
side
Pa
kist
an
Insi
de
Paki
stan
O
utsi
de
Paki
stan
In
side
Pa
kist
an
Out
side
Pa
kist
an
Conv
enti
onal
Bus
ines
s
Non
-Uni
tized
In
vest
men
t Li
nk B
usin
ess
Uni
t Li
nked
B
usin
ess
Acci
dent
and
H
ealt
h B
usin
ess
Indi
vidu
al
Fam
ily
Taka
ful U
nit
Link
ded
Bus
ines
s
Qua
rter
end
ed 3
1 M
arch
201
7
Rupe
es in
tho
usan
ds
Agg
rega
te
Life
In
sura
nce
Gra
nd T
otal
Life
Insu
ranc
e
Shar
ehol
ders
' Fu
nd
Fire
and
pro
pert
y da
mag
eM
arin
e, a
viat
ion
and
tran
spor
tM
otor
Hea
lth
Mis
cella
neou
sTo
tal
Agg
rega
te
Gen
eral
In
sura
nce
Insi
de
Paki
stan
O
utsi
de
Paki
stan
In
side
Pa
kist
an
Out
side
Pa
kist
an
Insi
de
Paki
stan
O
utsi
de
Paki
stan
In
side
Pa
kist
an
Out
side
Pa
kist
an
Insi
de
Paki
stan
O
utsi
de
Paki
stan
In
side
Pa
kist
an
Out
side
Pa
kist
an
Conv
enti
onal
Bus
ines
s
Non
-Uni
tized
In
vest
men
t Li
nk B
usin
ess
Uni
t Li
nked
B
usin
ess
Acci
dent
and
H
ealt
h B
usin
ess
Indi
vidu
al
Fam
ily
Taka
ful U
nit
Link
ded
Bus
ines
s
31 D
ecem
ber
2017
-Res
tate
d
Rupe
es in
tho
usan
ds
Agg
rega
te
Life
In
sura
nce
Gra
nd T
otal
Life
Insu
ranc
e
Shar
ehol
ders
' Fu
nd
Fire
and
pro
pert
y da
mag
eM
arin
e, a
viat
ion
and
tran
spor
tM
otor
Hea
lth
Mis
cella
neou
sTo
tal
Agg
rega
te
Gen
eral
In
sura
nce
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
72 FIRST QUARTER REPORT
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
26 Fair value measurement of financial instruments
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is the presumption that the company is a going concern and there is no intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis.
IFRS 13 'Fair Value Measurement' requires the company to classify fair value measurements and fair value hierarchy that reflects the significance of the inputs used in making the measurements of fair value hierarchy has the following levels:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
- Inputs other than quoted prices included within level 1 that are observable for the asset either directly (that is, derived from prices) (Level 2)
- Inputs for the asset or liability that are not based on observable market data (that is, unadjusted) inputs (Level 3)
Transfer between levels of the fair value hierarchy are recognized at the end of the reporting period during which the changes have occurred.
Fair Value through P&L
Loans andreceivables
Cash andcash
equivalents
Otherfinancialliabilities
Level 1 Level 2 Level 3Total Total
Carrying amount Fair value
(Rupees in thousand
Availablefor sale
NoteHeld to
maturity
31 March 2018
Financial assets
Investments
Equity securities 10
Debt securities 11
Term deposits
Loan secured against life insurance policies*
Loans and other receivables * 12
Insurance / reinsurance receivables
- unsecured and considered good * 13
Reinsurance recoveries against outstanding claims *
Salvage recoveries accrued *
Prepayments * 14
Cash and bank * 15
Financial liabilities
Retirement benefit obligation
Outstanding claims (including IBNR)* 16
Insurance / reinsurance payables *
Other creditors and accruals*
Accrued expenses*
Unclaimed dividend*
* The Company has not disclosed the fair value of these items because their carrying amounts are a reasonable approximation of fair value.
21,387,394
344,439
-
-
-
-
-
-
-
-
21,731,833
-
-
-
-
-
-
-
11,340,243
4,991,931
-
-
-
-
-
-
-
-
16,332,174
-
-
-
-
-
-
-
-
726,014
11,680,000
-
-
-
-
-
-
-
12,406,014
-
-
-
-
-
-
-
-
-
-
30,614
1,861,109
6,107,502
7,537,938
379,178
1,973,919
-
17,890,260
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,838,873
5,838,873
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
205,389
11,945,932
1,515,540
2,543,106
74,397
105,577
16,389,941
32,727,637
6,062,384
11,680,000
30,614
1,861,109
6,107,502
7,537,938
379,178
1,973,919
5,838,873
74,199,154
205,389
11,945,932
1,515,540
2,543,106
74,397
105,577
16,389,941
30,740,728
-
-
-
-
-
-
-
-
-
30,740,728
-
-
-
-
-
-
-
-
6,062,384
-
-
-
-
-
-
-
-
6,062,384
-
-
-
-
-
-
-
1,986,909
-
-
-
-
-
-
-
-
-
1,986,909
-
-
-
-
-
-
-
32,727,637
6,062,384
-
-
-
-
-
-
-
-
38,790,021
-
-
-
-
-
-
-
73ADAMJEE INSURANCE
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
26.1 Fair value measurement of financial instruments
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is the presumption that the company is a going concern and there is no intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis.
IFRS 13 'Fair Value Measurement' requires the company to classify fair value measurements and fair value hierarchy that reflects the significance of the inputs used in making the measurements of fair value hierarchy has the following levels:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
- Inputs other than quoted prices included within level 1 that are observable for the asset either directly (that is, derived from prices) (Level 2)
- Inputs for the asset or liability that are not based on observable market data (that is, unadjusted) inputs (Level 3)
Transfer between levels of the fair value hierarchy are recognized at the end of the reporting period during which the changes have occurred.
20,336,145
344,103
-
-
-
-
-
-
-
-
20,680,248
-
-
-
-
-
-
-
10,492,582
4,712,358
-
-
-
-
-
-
-
-
15,204,940
-
-
-
-
-
-
-
-
441,832
10,625,000
-
-
-
-
-
-
-
11,066,832
-
-
-
-
-
-
-
-
-
-
31,170
1,051,147
6,846,091
7,709,161
347,289
2,552,498
-
18,537,356
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,650,742
5,650,742
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
185,903
11,844,834
1,681,093
2,911,360
141,691
106,214
16,871,095
30,828,727
5,498,293
10,625,000
31,170
1,051,147
6,846,091
7,709,161
347,289
2,552,498
5,650,742
71,140,118
185,903
11,844,834
1,681,093
2,911,360
141,691
106,214
16,871,095
28,841,818
-
-
-
-
-
-
-
-
-
28,841,818
-
-
-
-
-
-
-
-
5,498,293
-
-
-
-
-
-
-
-
5,498,293
-
-
-
-
-
-
-
1,986,909
-
-
-
-
-
-
-
-
-
1,986,909
-
-
-
-
-
-
-
30,828,727
5,498,293
-
-
-
-
-
-
-
-
36,327,020
-
-
-
-
-
-
-
31 December 2017 - Restated
Financial assets
Investments
Equity securities 10
Debt securities 11
Term deposits
Loan secured against life insurance policies*
Loans and other receivables * 12
Insurance / reinsurance receivables
- unsecured and considered good * 13
Reinsurance recoveries against outstanding claims *
Salvage recoveries accrued *
Prepayments * 14
Cash and bank * 15
Financial liabilities
Retirement benefit obligation
Outstanding claims (including IBNR)* 16
Insurance / reinsurance payables *
Other creditors and accruals*
Accrued expenses*
Unclaimed dividend*
* The Company has not disclosed the fair value of these items because their carrying amounts are a reasonable approximation of fair value.
Fair Value through P&L
Loans andreceivables
Cash andcash
equivalents
Otherfinancialliabilities
Level 1 Level 2 Level 3Total Total
Carrying amount Fair value
(Rupees in thousand
Availablefor sale
NoteHeld to
maturity
74 FIRST QUARTER REPORT
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
Fair Value
through Profit &
Loss
Available for sale
Held to maturity Total
Rupees in thousand
27 Movement in investment
As at beginning of previous year
Additions
Disposals (Sales and redemptions)
Fair value net gains
(excluding net realized gain)
Amortisation of discount/ (premium)
on Government Securities
Unwinding of income on Investment bonds
Impairment / (reversal of losses)
As at beginning of current year
Additions
Disposals (sales and redemptions)
Fair value on gains
(excluding net realized gain)
Amortisation of discount/ (premium)
on Government Securities
Impairment / (reversal of losses)
As at end of current period
22,952,421
6,773,677
(5,808,530)
(2,179,624)
(289)
-
(1,057,405)
20,680,250
412,404
(425,700)
1,027,486
381
37,012
21,731,833
386,626
1,399,001
(1,344,848)
-
-
1,053
-
441,832
655,066
(370,884)
-
-
-
726,014
14,228,646
100,769,201
(98,590,128)
(1,645,662)
442,881
-
-
15,204,938
22,981,365
(22,929,175)
943,242
131,804
-
16,332,174
37,567,693
108,941,879
(105,743,506)
(3,825,286)
442,592
1,053
(1,057,405)
36,327,020
24,048,835
(23,725,759)
1,970,728
132,185
37,012
38,790,021
28 Date of authorization for issue
This consolidated condensed interim financial information was authorized for issue on 23 April 2018 by the Board of Directors of the Company.
29 Non-adjusting events after balance sheet date
The Board of Directors of the Holding Company in their meeting held on 21 March 2018 proposed final cash dividend for the year ended 31 December 2017 @ 10% i.e. Rupee 1 /- per share which has been approved by the members in the Annual General Meeting held on 23 April 2018.
30 General
30.1 Corresponding figures have been rearranged and reclassified for better presentation, whereever considered necessary.
30.2 Figures have been rounded off to the nearest thousand rupees unless other wise stated.
75ADAMJEE INSURANCE
WINDOW TAKAFUL OPERATIONS
Condensed InterimFinancial Informationfor the Quarter Ended
31 March 2018(Unaudited)
76 FIRST QUARTER REPORT
Window Takaful Operations
Condensed Interim Balance Sheet (Unaudited)
Restated
(Audited)
Note 31 December 2017
AggregateOperator's Fund
Participants' Takaful Fund
Aggregate
Rupees in thousand
(Unaudited)
31 March 2018
As at 31 March 2018
FUNDS AND LIABILITIES
Operator's Fund
Statutory fund
Reserves
Unappropriated profit
Waqf / Participants' Takaful Fund
Ceded money
Accumulated deficit
Qard-e-Hasna from Operator's Fund
Liabilities
Underwriting provisions
Outstanding claims (including IBNR)
Unearned contribution reserve
Unearned re-takaful rebate
Contribution deficiency reserve
Retirement benefit obligations
Deferred taxation
Contribution received in advance
Takaful / re-takaful payables
Wakala and mudarib fee payable
Provision for unearned wakala fee
Other creditors and accruals
Taxation - provision less payments
Total Liabilities
TOTAL FUND AND LIABILITIES
Contingencies and commitments
17
16
19
18
14
15
50,000
887
63,166
114,053
-
-
-
-
-
-
-
-
1,883
513
-
-
-
107,731
38,966
25,854
174,947
289,000
-
-
-
-
500
(41,795)
(41,295)
117,000
156,637
264,218
10,902
1,919
-
-
5,150
64,071
79,955
-
19,874
602,726
678,431
50,000
887
63,166
114,053
500
(41,795)
(41,295)
117,000
156,637
264,218
10,902
1,919
1,883
513
5,150
64,071
79,955
107,731
58,840
25,854
777,673
967,431
50,000
128
49,809
99,937
500
(36,179)
(35,679)
117,000
153,116
194,954
10,156
1,919
1,883
513
4,116
59,557
8,815
89,452
40,167
19,504
584,152
765,410
77ADAMJEE INSURANCE
ASSETS
Qard-e-Hasna to Participants' Takaful Fund
Property and equipment
Investments
Loans and other receivables
Takaful / re-takaful receivables
Re-takaful recoveries against outstanding claims
Salvage recoveries accrued
Wakala and mudarib fee receivable
Deferred commission expense
Prepayments
Cash & Bank
8
9
10
11
20
12
13
TOTAL ASSETS
117,000
21,860
31,268
2,261
-
-
-
79,955
27,355
1,625
7,676
172,000
289,000
-
-
-
4,658
231,140
45,807
11,800
-
-
70,701
314,325
678,431
678,431
117,000
21,860
31,268
6,919
231,140
45,807
11,800
79,955
27,355
72,326
322,001
850,431
967,431
117,000
22,182
30,343
5,630
183,594
34,211
6,800
8,815
20,213
64,631
271,991
648,410
765,410
The annexed notes from 1 to 28 form an integral part of this condensed interim financial information.
Restated
(Audited)
Note 31 December 2017
AggregateOperator's Fund
Participants' Takaful Fund
Aggregate
Rupees in thousand
(Unaudited)
31 March 2018
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
78 FIRST QUARTER REPORT
Window Takaful Operations
Condensed Interim Profit and Loss Account (Unaudited)For the Quarter Ended 31 March 2018
Participant Takaful Fund - Revenue Account
Net Contribution revenue 16 80,569 43,638
Net claims 17 (87,521) (52,124)
Direct expenses (8,674) (2,416)
Re-takaful Rebate Earned 19 7,601 3,646
Claims and acquisition expenses (88,594) (50,894)
Underwriting deficit (8,025) (7,256)
Investment Income 21 2,409 817
Deficit for the period (5,616) (6,439)
Operator Takaful Fund - Revenue Account
Wakala Income 18 52,862 28,923
Commission expense 20 (13,056) (5,748)
Management expense (21,051) (8,437)
18,755 14,738
Investment Income 21 1,055 142
Profit before tax 19,810 14,880
Less: Provision for Taxation (6,453) (4,613)
Profit aster tax 13,357 10,267
The annexed notes from 1 to 28 form an integral part of this condensed interim financial information.
Quarter ended
31 March 2018
Note
Rupees in thousand
Quarter ended
31 March 2017
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
79ADAMJEE INSURANCE
Condensed Interim Statement of Comprehensive Income (Unaudited)For the Quarter Ended 31 March 2018
(Restated)
OPERATOR`S FUND
Profit aster tax 13,357 10,267
Other comprehensive income for the period - -
Unrealized gains on available-for-sale investment 759 470
Total comprehensive income for the period 14,116 10,737
The annexed notes from 1 to 28 form an integral part of this condensed interim financial information.
Quarter ended
31 March 2018
Rupees in thousand
Quarter ended
31 March 2017
Window Takaful Operations
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
80 FIRST QUARTER REPORT
Window Takaful Operations
Condensed Interim Cash Flow Statement (Unaudited)For the Quarter Ended 31 March 2018
Operator's Fund
Participants' Takaful Fund
Aggregate
Rupees in thousand
31 March 2018Quarter ended
31 March 2017
Operating cash flows
(a) Takaful activities
Contributions received
Re-takaful / co-takaful payments made
Claims paid
Re-takaful and other recoveries received
Commissions paid
Commissions received
Other underwriting payments
Net cash inflows / (outflows) from takaful activities
(b) Other operating activities
Income tax paid
General, administration and management expenses paid
Loans repaid
Other Receipts
Net cash inflows / (outflows) from other operating activities
Total cash inflows / (outflows) from operating activities
Investment activities
Profit received on bank deposits
Payment for investments
Proceeds from disposal of investments
Fixed capital expenditures
Total cash inflows from investing activities
Financing activities
Contribution to Operator's fund
Qard-e-Hasna received from Operator's Fund
Ceded money
Total cash inflows from financing activities
Net Cash inflows from all activities
Cash at the beginning of the period
Cash at the end of the period
-
-
-
-
(11,974)
-
-
(11,974)
(103)
(22,208)
-
-
(22,311)
(34,285)
1,014
(30,381)
30,381
(172)
842
-
-
-
-
(33,443)
41,119
7,676
220,975
(41,136)
(104,762)
632
-
8,347
(11,915)
72,142
(202)
-
-
9,493
9,291
81,433
2,020
-
-
-
2,020
-
-
-
-
83,453
230,872
314,325
220,975
(41,136)
(104,762)
632
(11,974)
8,347
(11,915)
60,168
(305)
(22,208)
-
9,493
(13,020)
47,148
3,034
(30,381)
30,381
(172)
2,862
-
-
-
-
50,010
271,991
322,001
153,927
(24,772)
(28,282)
8,025
(3,789)
7,881
(11,273)
101,717
42
(9,671)
168
(975)
(10,436)
91,281
467
-
-
(163)
304
-
-
-
-
91,585
83,855
175,440
81ADAMJEE INSURANCE
Reconciliation to profit and loss account
Operating cash flows
Depreciation
Increase in loans
Increase in assets other than cash
Increase in liabilities other than cash
Investment income
Return on bank deposits
Net profit / (deficit) for the period before tax
Definition of cash
Cash for the purposes of the statement of cash flows consists of:
Cash and cash equivalents
Current and other accounts
Total cash and cash equivalents
(34,285)
(494)
-
80,715
(27,181)
166
889
19,810
134
7,542
7,676
81,433
-
-
69,395
(158,853)
-
2,409
(5,616)
-
314,325
314,325
47,148
(494)
-
150,110
(186,034)
166
3,298
14,194
134
321,867
322,001
91,281
(175)
(168)
191,842
(275,298)
-
959
8,441
162
175,278
175,440
The annexed notes from 1 to 28 form an integral part of this condensed interim financial information.
Cash comprises of cash in hand, policy stamps, bond papers, bank balances and other deposits which are readily convertible to
cash in hand and which are used in cash management function on a day-to-day basis.
Operator's Fund
Participants' Takaful Fund
Aggregate
Rupees in thousand
31 March 2018
Operator's Fund
Participants' Takaful Fund
Aggregate
Rupees in thousand
31 March 2018Quarter ended
31 March 2017
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
Quarter ended
31 March 2017
82 FIRST QUARTER REPORT
Window Takaful Operations
Condensed Interim Statement of Changes in Funds (Unaudited)For the Quarter Ended 31 March 2018
Statutory FundUnappropriated
Profit / (Loss)Total
Operator's Fund
Rupees in thousand
Fair value
Reserve
Balance as at 31 December 2016 - (Audited)
Effect of restatement as disclosed in note 4.1.2
Balance as at 31 December 2016 - (Audited) - restated
Profit for the period 01 Jan 2017 to 31 March 2017Other comprehensive income for the period 01 Jan 2017 to 31 March 2017Total comprehensive profit for the period
Balance as at 31 March 2017 - (Unaudited) - restated
Profit for the period 01 April 2017 to 31 December 2017Other comprehensive loss for the period 01 April 2017 to 31 December 2017Total comprehensive income / (loss) for the period
Balance as at 31 December 2017 - (Audited) - restated
Profit for the period 01 Jan 2018 to 31 March 2018Other comprehensive income for the period 01 Jan 2018 to 31 March 2018Total comprehensive Income for the period
Balance as at 31 March 2018 - (Unaudited)
Balance as at 31 December 2016 - (Audited)
Deficit for the period 01 Jan 2017 to 31 March 2017Other comprehensive surplus/ (deficit) for the period 01 Jan 2017 to 31 March 2017Total comprehensive deficit for the period
Balance as at 31 March 2017 - (Unaudited)
Deficit for the period 01 April 2017 to 31 December 2017Other comprehensive surplus/ (deficit) for the period 01 April 2017 to 31 December 2017Total comprehensive deficit for the period
Balance as at 31 December 2017 - (Audited)
Deficit for the period 01 Jan 2018 to 31 March 2018Other comprehensive surplus/ (deficit) for the period 01 Jan 2018 to 31 March 2018Total comprehensive deficit for the period
Balance as at 31 March 2018 - (Unaudited)
50,000
-
50,000
-
--
50,000
-
--
50,000
-
--
50,000
500
-
--
500
-
--
500
-
--
500
2,791
-
2,791
10,737
-10,737
13,528
36,281
-36,281
49,809
13,357
-13,357
63,166
(5,075)
(6,439)
-(6,439)
(11,514)
(24,665)
-(24,665)
(36,179)
(5,616)
-(5,616)
(41,795)
-
121
121
-
470470
591
-
(463)(463)
128
-
759759
887
-
-
-
-
-
-
-
-
-
52,791
121
52,912
10,737
47011,207
64,119
36,281
(463)35,818
99,937
13,357
75914,116
114,053
(4,575)
(6,439)
-(6,439)
(11,014)
(24,665)
-(24,665)
(35,679)
(5,616)
-(5,616)
(41,295)
The annexed notes from 1 to 28 form an integral part of this condensed interim financial information.
Statutory FundAccumulated
surplus / (deficit)Total
Participants' Takaful Fund
Rupees in thousand
Fair value
Reserve
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
83ADAMJEE INSURANCE
Notes to the Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
1 Legal status and nature of business
Adamjee Insurance Company Limited ("the Operator") is a public limited company incorporated in Pakistan on 28 September 1960 under the Companies Act, 1913 (now the Companies Act, 2017). The Operator is listed on Pakistan Stock Exchange and is engaged in general takaful business comprising fire & property, marine, motor, accident and health and miscellaneous. The registered office of the Operator is situated at Tanveer Building, 27-C-III, MM Alam Road, Gulberg III, Lahore.
The Operator was granted authorization on 23 December 2015 under Rule 6 of the Takaful Rules, 2012 to undertake Window Takaful Operations ("WTO") in respect of general takaful products by Securities and Exchange Commission of Pakistan ("SECP").
The Operator created a Waqf of Rs. 500,000 for Participants' Takaful Fund by signing a Waqf Deed on 01 January 2016. Waqf Deed governs the relationship of the Operator and Participants for management of takaful operations and investments under Participants' Takaful Fund ("PTF") and Operator's Takaful Fund ("OTF") approved by the shariah advisor of the Operator.
2 Basis of preparation
The condensed interim financial information has been prepared in accordance with the requirements of the International Accounting Standard (IAS) 34 - 'Interim Financial Reporting' as applicable in Pakistan, provisions of and directives issued under Companies Act, 2017, the Insurance Ordinance, 2000, Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and Takaful Rules, 2012. In case where requirements differ, the provisions of or directives issued under the Companies Act, 2017, the Insurance Ordinance, 2000, Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and Takaful Rules, 2012 have been followed.
This condensed interim financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with annual financial statements of the Operator for the year ended 31 December 2017.
This Condensed Interim Financial Information reflect the financial position and results of operations of both the PTF and OTF in a manner that the assets, liabilities, income and expenses of the OTF and PTF remain separately identifiable.
3 Statement of Compliance
3.1 This condensed interim financial information has been prepared under the historical cost convention except that certain investments are carried at fair value and the obligations under certain employee benefits that are measured at present value. Accrual basis of accounting has been used except for cash flow information.
3.2 The Companies Act 2017 (“the Act”) was enacted on 30 May 2017 and replaced and repealed the Companies Ordinance, 1984 (“the repealed Ordinance”) with its application from January 01,2018. Accordingly, this condensed interim financial information has been prepared in accordance with the provision of the Companies Act, 2017.
3.3 Securities and Exchange Commission of Pakistan (“SECP”) vide S.R.O 88(1)/2017 and S.R.O89(1)/2017 dated 9 February 2017 has issued the Insurance Accounting Regulations, 2017 and Insurance Rules, 2017 (the new Rules and Regulations). The application of these Regulations and Rules for the purpose of preparation and presentation of the financial statements was effective from 1 April 2017.
However, SECP vide letter ID/OSM/Adamjee/2017/12269 dated 11 October 2017 has allowed the Operator for the application of new Regulations effective from 1 January 2018. Consequently, the Operator has changed its accounting policies in respect of presentation of financial statements and "available-for-sale" investments as explained in note 4.1 of this condensed interim financial information.
4 Summary of significant accounting policies
The accounting policies and methods of computation adopted in the preparation of this condensed interim financial information are the same as those applied in the preparation of the financial statements of the Operator for the year ended 31 December 2017 except for change in accounting policies in note 4.1 of this condensed interim financial information.
The Operator has adopted all the applicable new standards and amendments to standards, including any consequential amendments to other standards, with a date of initial application of 01 January 2018, as mentioned in the financial statements
84 FIRST QUARTER REPORT
Window Takaful Operations
Notes to the Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
for the year ended 31 December 2017.
There is no significant impact of such changes on this condensed interim financial information of the Operator.
4.1 Changes in accounting policies
4.1.1 Presentation and disclosure of financial statements
As per Insurance Rules, 2017, the presentation and disclosure requirements of the financial statements have changed under the format prescribed in Annexure II of the said Rules. Accordingly, change in presentation and disclosures of this condensed interim financial information has been applied retrospectively.
4.1.2 Investments
Financial assets were previously measured as per the provisions of repealed SEC (Insurance) Rules, 2002. Starting from financial year 2018, Financial assets fall in the scope of IAS 39 “Financial Instruments - Recognition and Measurement”, and are classified as loans and receivables, held-to-maturity investments or available-for-sale financial assets, as appropriate. Financial assets are initially measured at cost, which is the fair value of consideration given and received respectively. These financial assets are subsequently measured at fair value or cost as the case may be. The Operator determines the classification of its financial assets after initial recognition and, where allowed and appropriate, re-evaluates this designation at each financial year end.
Consequent to this change, investments as at December 31, 2017 have been increased by Rs. 128,000 with a corresponding increase in fair value reserve in equity amounting to Rs. 128,000 Furthermore, fair value reserve as at December 31, 2016 has increased by Rs. 121,000.
4.1.2.1 Basis for measurement of available for sale investments
Under the repealed SEC (Insurance) Rules, 2002, the Operator previously recorded its "available-for-sale" investments at cost and remeasured them at lower of cost or market value. The Insurance Rules, 2017 require the initial measurement of "available-for-sale" investments at cost with the subsequent remeasurement at fair value at each reporting date. The unrealized gains and losses arising from changes in fair values are directly recognized in equity in the period in which these arise until the investments are sold or determined to be impaired. The said change in accounting policy has been made in accordance with the requirements of IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors".
4.1.2.2 Basis for measurement of held to maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity when the Operator has the positive intention and ability to hold to maturity and are initially measured at cost. These are subsequently measured at amortized cost. Investments intended to be held for an undefined period are not included in this classification.
4.1.3 Contribution revenue
The Insurance Accounting Regulations, 2017 remodel the recognition criteria for the contribution written under a Takaful contract. The said regulations require the Operator to recognize contribution receivable under a Takaful contract / cover note as written from the date of attachment of risk to the contract / cover note. Accordingly, the Operator is required to account for cover notes which are effective as at balance sheet date.
As per repealed SEC (Insurance) Rules, 2002, the contribution was written under a Takaful contract at the time of its issuance. The change is considered to be a change in accounting policy in accordance with IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors". The impact of the same is not considered to be material to the financial statements and accordingly not included in the comparative restated financial information.
4.1.4 Wakala fee
The Operator manages the general takaful operations for the participants and charges 28 % (2017: 32 %) for Fire and Property, 35 % (2017: 35 %) for Marine, Aviation and Transport, 27.5 % (2017: 32.5 %) for Motor, 25 % (2017: 27.5%) for
85ADAMJEE INSURANCE
Notes to the Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
Health and 25 % (2017: 30 %) for Miscellaneous, of gross contribution written including administrative surcharge as wakala fee against the services.
5 Use of estimates and judgments
The preparation of this condensed interim financial information in conformity with the approved accounting standards requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the process of applying the Operator's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
During preparation of this condensed interim financial information, the significant judgments made by the management in applying the Operator's accounting policies and the key sources of estimation and uncertainty were the same as those that applied in the preceding audited annual published financial statements of the Operator for the year ended 31 December 2017.
6 Functional and presentation currency
This unconsolidated condensed interim financial information is presented in Pakistani Rupees, which is also the Operator’s functional currency.
7 Financial risk management
The Operator's financial risk management objectives and policies are consistent with those disclosed in the financial statements for the year ended 31 December 2017.
(Audited)
Note 31 December 2017
AggregateOperator's Fund
Participants' Takaful Fund
Aggregate
Rupees in thousand
(Unaudited)
31 March 2018
8 Property and equipment
Operating Assets-Tangible 8.1Capital work-in-progress 8.3
8.1 Operating Assets-Tangible
Opening balance- net book value
Additions during the period 8.2Less:
Book value of disposal during the period
Depreciation charged during the period
8.2 Additions during the period
Furniture and fixture
Motor vehicles
Office equipment
Computer and related accessories
11,860
10,000
21,860
12,182
172
-
(494)
(494)
11,860
-
-
-
172
172
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11,860
10,000
21,860
12,182
172
-
(494)
(494)
11,860
-
-
-
172
172
12,182
10,000
22,182
2,592
10,687
-
(1,097)
(1,097)
12,182
135
8,878
883
791
10,687
8.3 This represent amount advanced to Centegy Technologies (Private) Limited. for implementation of Enterprise Resource Planning software for Takaful Operations.
86 FIRST QUARTER REPORT
Window Takaful Operations
Notes to the Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
11 Takaful/ Re-takaful receivables- Unsecured and considered good
Contribution due but unpaid 195,451 152,981
Less: provision for impairment of contribution due but unpaid - -
195,451 152,981
Amount due from other takaful/ re-takaful operators 35,689 30,613
Less: provision for impairment of due from other takaful/ re-takaful operators - -
35,689 30,613
231,140 183,594
Restated(Unaudited) (Audited)
Rupees in thousand
31 December 2017
CostImpairment/
provisionCarrying value
31 March 2018
CostImpairment/
provisionCarrying value
9 Investments
Available-for-sale-Mutual Fund
Moderate allocation plan fund
[447,300 units (2017: Nil units)]
Meezan Islamic Income Fund
30,381
-
-
-
-
30,215
-
-
[580,826 units]
Unrealized gain on revaluation
30,381
-
887
31,268
-
30,215
128
30,343
31 March 2018Note
Rupees in thousand
(Unaudited) (Audited)
31 December 2017
10 Loans and other receivables - Considered good
Sales tax recoverable 270 - 270 249
Advance taxes - 1,052 1,052 850
Accrued investment income 253 966 1,219 955
Loan to employees 109 - 109 327
Advances and deposits 1,629 2,640 4,269 3,249
2,261 4,658 6,919 5,630
(Audited)
31 December 2017
AggregateOperator's Fund
Participants' Takaful Fund
Aggregate
Rupees in thousand
(Unaudited)
31 March 2018
87ADAMJEE INSURANCE
Notes to the Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
(Audited)
31 December 2017
AggregateOperator's Fund
Participants' Takaful Fund
Aggregate
Rupees in thousand
(Unaudited)
31 March 2018
12 Prepayments
Prepaid retakaful contribution ceded
Prepaid monitoring charges (Tracking device)
Others
13 Cash and Bank
Cash and cash equivalents:
Cash in hand
Current and other accounts:
Saving accounts
13.1 Saving accounts carry expected profit rates ranging from 3.5% to 5%.
14 Other Creditors and Accruals
Commission payable
Federal excise duty
Federal insurance fee
Income tax deducted at source
Accrued expenses
Others
-
-
1,625
1,625
134
7,542
7,676
31,767
-
-
2,346
2,417
2,436
38,966
54,914
15,787
-
70,701
-
314,325
314,325
-
13,245
2,625
3,740
-
264
19,874
54,914
15,787
1,625
72,326
134
321,867
322,001
31,767
13,245
2,625
6,086
2,417
2,700
58,840
52,244
12,387
-
64,631
5
271,986
271,991
23,543
3,729
1,715
6,840
3,661
679
40,167
15 Contingencies and Commitments
There are no contingencies and commitments as at 31 March 2018.
(Audited)
31 December 2017
AggregateOperator's Fund
Participants' Takaful Fund
Aggregate
Rupees in thousand
(Unaudited)
31 March 2018
(Audited)
31 December 2017
AggregateOperator's Fund
Participants' Takaful Fund
Aggregate
Rupees in thousand
(Unaudited)
31 March 2018
88 FIRST QUARTER REPORT
Window Takaful Operations
Notes to the Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
31 March 2018
Rupees in thousand
31 March 2017
17 Net Claims
Claims paid
Add: Outstanding claims including IBNR closing
Less: Outstanding claims including IBNR opening
Claim expense
Less: Re-takaful and other recoveries received
Add: Re-takaful and other recoveries in respect of
outstanding claims net of impairment (if any) closing
Less: Re-takaful and other recoveries in respect of
outstanding claims net of impairment (if any)
opening
Re-takaful and other recoveries revenue
Net claim expense
18 Wakala Income
Gross Wakala fee
Add: Unearned Wakala fee Opening
Less: Unearned Wakala fee Closing
Wakala Income
19 Re-takaful rebate unearned
Re-takaful rebate received
Add: Re-takaful rebate opening
Less: Re-takaful rebate closing
Net re-takaful rebate
20 Commission Expense
Commission paid or payable
Add: Deferred commission opening
Less: Deferred commission closing
Net commission
71,141
89,452
(107,731)
52,862
8,347
10,156
(10,902)
7,601
20,198
20,213
(27,355)
13,056
73,802
36,376
(81,255)
28,923
7,881
3,510
(7,745)
3,646
15,092
6,347
(15,691)
5,748
16 Net contribution revenue
Gross contribution written
Less: Gross wakala fee
Net contribution written
Opening: Unearned contribution revenue
Closing: Unearned contribution revenue
Contribution earned
Less: Re-takaful contribution ceded
Add: Prepaid re-takaful contribution ceded opening
Less: Prepaid re-takaful contribution ceded closing
Re-takaful expense
104,762
156,637
(153,116)
108,283
4,166
57,607
(41,011)
20,762
87,521
262,412
(71,141)
191,271
194,954
(264,218)
122,007
44,108
52,244
(54,914)
41,438
80,569
28,282
50,166
(25,705)
52,743
8,025
2,402
(9,808)
619
52,124
248,055
(73,801)
174,254
77,140
(186,898)
64,496
41,967
17,660
(38,769)
20,858
43,638
89ADAMJEE INSURANCE
Notes to the Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
21 Investment income
Profit on mutual funds 166 - 166 -
Profit on bank deposits 889 2,409 3,298 959
1,055 2,409 3,464 959
31 March2017 Operator's
FundParticipants' Takaful Fund
Aggregate
Rupees in thousand
31 March 2018
22 Segment Information
Each class of business has been identified as reportable segment. Class of business wise revenue and results have been disclosed in the profit and loss account prepared in accordance with the requirements of the Insurance Ordinance, 2000. The following is a schedule of class of business wise assets and liabilities.
Fire and Property Damage
Marine, Aviation and
TransportMotor
Accident & Health
Miscellaneous Total
Rupees in thousand
Participants' Takaful Fund
31 March 2018 (Unaudited)
Participants' Takaful FundContribution receivable (inclusive of Federal Excise Duty, Federal Insurance Fee and Administrative Surcharge)Less : Federal Excise Duty Federal Insurance Fee Gross Direct Written Contribution (inclusive of Administrative Surcharge) Facultative inward contributionGross Contribution Written
Contribution earnedRetakaful expenseNet contribution revenueNet rebate on re-takafulNet underwriting surplus / (deficit)
Takaful claimsRe-takaful and other recoveriesNet claims
Direct expenseNet takaful claims and expenses
Underwriting results
Net investment income
Deficit for the period
Segment assetsUnallocated assetsTotal assets
Segment liabilitiesUnallocated liabilitiesTotal liabilities
36,948(5,053)
(316)
31,579114
31,693
17,990(20,809)
(2,819)4,2101,391
(5,442)3,020
(2,422)
42(2,380)
(989)
95,693-
95,693
95,922-
95,922
5,177(708)
(44)
4,425-
4,425
2,891(3,354)
(463)721258
(80)63(17)
(1)(18)
240
7,029-
7,029
6,627-
6,627
193,967(26,526)
(1,658)
165,783-
165,783
68,072(3,181)64,891
-64,891
(59,936)6,825
(53,111)
(8,447)(61,558)
3,333
157,826-
157,826
335,893-
335,893
55,008(7,523)
(470)
47,015-
47,015
21,676-
21,676-
21,676
(30,765)-
(30,765)
(15)(30,780)
(9,104)
41,412-
41,412
105,030-
105,030
15,790(2,159)
(135)
13,496-
13,496
11,378(14,094)
(2,716)2,670
(46)
(12,060)10,854(1,206)
(253)(1,459)
(1,505)
41,701-
41,701
39,380-
39,380
306,890(41,969)(2,623)
262,298114
262,412
122,007(41,438)80,569
7,60188,170
(108,283)20,762
(87,521)
(8,674)(96,195)
(8,025)
2,409
(5,616)
343,661334,770678,431
582,852136,874719,726
90 FIRST QUARTER REPORT
Window Takaful Operations
Fire and Property Damage
Marine, Aviation and
TransportMotor
Accident & Health
Miscellaneous Total
Rupees in thousand
31 March 2017
Participants' Takaful Fund
Contribution receivable (inclusive of Federal
Excise Duty, Federal Insurance Fee and
Administrative Surcharge)
Less : Federal Excise Duty
Federal Insurance Fee
Gross Direct Written Contribution
(inclusive of Administrative Surcharge)
Facultative inward contribution
Gross Contribution Written
Contribution earned
Retakaful expense
Net contribution revenue
Net rebate on re-takaful
Net underwriting surplus / (deficit)
Takaful claims
Re-takaful and other recoveries
Net claims
Direct expense
Net takaful claims and expenses
Underwriting results
Net investment income
Deficit for the period
Assets
Segment assets
Unallocated assets
Total assets
Liabilities
Segment liabilities
Unallocated liabilities
Total liabilities
23,040
(2,794)
(201)
20,045
-
20,045
7,616
(9,000)
(1,384)
1,805
421
(793)
596
(197)
(4)
(201)
220
83,349
-
83,349
76,261
-
76,261
4,958
(541)
(44)
4,373
-
4,373
2,669
(3,177)
(508)
674
166
-
-
-
5
5
171
7,962
-
7,962
6,475
-
6,475
87,274
(10,085)
(764)
76,425
12
76,437
24,309
(2,848)
21,461
-
21,461
(29,220)
-
(29,220)
(2,296)
(31,516)
(10,055)
90,823
-
90,823
220,565
-
220,565
127,092
-
(1,258)
125,834
-
125,834
25,358
-
25,358
-
25,358
(22,704)
-
(22,704)
(20)
(22,724)
2,634
52,752
-
52,752
99,019
-
99,019
24,358
(2,778)
(214)
21,366
-
21,366
4,544
(5,833)
(1,289)
1,167
(122)
(26)
23
(3)
(101)
(104)
(226)
41,963
-
41,963
30,313
-
30,313
266,722
(16,198)
(2,481)
248,043
12
248,055
64,496
(20,858)
43,638
3,646
47,284
(52,743)
619
(52,124)
(2,416)
(54,540)
(7,256)
817
(6,439)
276,849
247,312
524,161
432,633
127,207
559,840
Notes to the Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
(Unaudited)
(Audited)
Fire and Property Damage
Marine, Aviation and
TransportMotor
Accident & Health
Miscellaneous Total
Rupees in thousand
31 December 2017
91ADAMJEE INSURANCE
Notes to the Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
Fire and Property Damage
Marine, Aviation and
TransportMotor
Accident & Health
Miscellaneous Total
Rupees in thousand
31 March 2018
Operator's Fund
Operator's Fund
Wakala fee income
Less : Commission expense
Management expenses
Net Investment Income
Profit before tax
Segment assets
Unallocated assets
Total assets
Segment liabilities
Unallocated liabilities
Total liabilities
Operator's Fund
Wakala fee income
Less : Commission expense
Management expenses
Net Investment Income
Profit before tax
Segment assets
Unallocated assets
Total assets
Segment liabilities
Unallocated liabilities
Total liabilities
7,984
(3,600)
(5,804)
15,898
-
15,898
13,877
-
13,877
3,685
(1,464)
(2,149)
7,298
-
7,298
12,987
-
12,987
1,556
(628)
(1,013)
1,376
-
1,376
128
-
128
1,437
(591)
(867)
229
-
229
135
-
135
30,849
(5,554)
(8,955)
66,854
-
66,854
72,073
-
72,073
11,881
(1,631)
(2,394)
12,513
-
12,513
57,332
-
57,332
7,933
(1,937)
(3,123)
17,676
-
17,676
16,042
-
16,042
9,873
(1,504)
(2,208)
5,517
-
5,517
12,221
-
12,221
4,540
(1,337)
(2,156)
5,506
-
5,506
5,611
-
5,611
2,047
(558)
(819)
3,471
-
3,471
6,777
-
6,777
52,862
(13,056)
(21,051)
18,755
1,055
19,810
107,310
181,690
289,000
107,731
67,216
174,947
28,923
(5,748)
(8,437)
14,738
142
14,880
29,028
212,093
241,121
89,452
51,860
141,312
Fire and Property Damage
Marine, Aviation and
TransportMotor
Accident & Health
Miscellaneous Total
Rupees in thousand
31 March 2017
(1,420) (85) 10,340 3,873 1,047
72 (21) 7,856 6,161 670
(Audited)
(Unaudited)
(Unaudited)
Fire and Property Damage
Marine, Aviation and
TransportMotor
Accident & Health
Miscellaneous Total
Rupees in thousand
31 December 2017
92 FIRST QUARTER REPORT
Window Takaful Operations
Notes to the Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
23 Fair values of financial instruments
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is the presumption that the company is a going concern and there is no intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis.
IFRS 13 'Fair Value Measurement' requires the company to classify fair value measurements and fair value hierarchy that reflects the significance of the inputs used in making the measurements of fair value hierarchy has the following levels:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
- Inputs other than quoted prices included within level 1 that are observable for the asset either directly (that is, derived from prices) (Level 2)
- Inputs for the asset or liability that are not based on observable market data (that is, unadjusted) inputs (Level 3)
Transfer between levels of the fair value hierarchy are recognised at the end of the reporting period during which the changes have occurred.
Note Carrying amount Fair value
Availablefor sale
Loans andreceivables
Cash andcash
equivalents
Other
liabilitiesTotal Level 1 Level 2 Level 3 Total
Rupees in thousand
financial
31 March 2018
Financial assets
Investments 9 -
Loan and other receivables * 10 -
Takaful / re-takaful receivables * 11 -
Re-takaful recoveries against outstanding claims * -
Salvage recoveries accrued * -
Wakala and mudarib fee receivable * -
Cash and bank deposits * 13 -
-
Financial liabilities
Provision for outstanding claims * -
Amount due to other takaful / re-takaful operators * -
Wakala and mudarib fee payable * -
Other creditors and accruals * 14 -
-
31,268
-
-
-
-
-
-
-
-
-
-
-
-
6,919
231,140
45,807
11,800
79,955
-
-
-
-
-
-
-
-
-
-
-
-
322,001
322,001
-
-
-
-
-
-
-
-
-
-
-
-
-
156,637
64,071
79,955
27,073
327,736
31,268
6,919
231,140
45,807
11,800
79,955
322,001
728,890
156,637
64,071
79,955
27,073
327,736
31,268
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31,268
-
-
-
-
-
-
-
-
-
-
-
-
31,268 375,621 31,26831,268
93ADAMJEE INSURANCE
Note Carrying amount Fair value
Availablefor sale
Loans andreceivables
Cash andcash
equivalents
Other
liabilitiesTotal Level 1 Level 2 Level 3 Total
Rupees in thousand
financial
31 December 2017 (Audited)
Notes to the Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
Financial assets
Investments 9 -
Loan and other receivables * 10 -
Takaful / re-takaful receivables * 11 -
Re-takaful recoveries against outstanding claims * -
Salvage recoveries accrued * -
Wakala and mudarib fee receivable * -
Cash and bank deposits * 13 -
-
Financial liabilities
Provision for outstanding claims * -
Amount due to other takaful / re-takaful operators * -
Wakala and mudarib fee payable * -
Other creditors and accruals * 14 -
30,215
-
-
-
-
-
--
30,215
-
-
-
-
-
-
4,204
183,594
34,211
6,800
8,815
-
237,624
-
-
-
-
-
-
-
-
-
-
-
271,986-
271,986
-
-
-
-
-
-
-
-
-
-
-
---
153,116
59,557
8,815
27,884
249,372
30,215
4,204
183,594
34,211
6,800
8,815
271,986
539,825
153,116
59,557
8,815
27,884
249,372 -
30,343
-
-
-
-
-
-
30,343
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30,343
-
-
-
-
- -
30,343
-
-
-
-
-
-
* The Operator has not disclosed the fair value of these items because their carrying amounts are reasonable approximation of fair value.
24 Movement in Investment - Available for sale
As at beginning of previous year 30,026Additions 60,318Disposals (sales and redemptions) (60,008)Fair value on gains
(excluding net realized gain) 7Impairment / (reversal of losses -As at beginning of current year 30,343Additions 30,381Disposals (sales and redemptions) (30,215)Fair value on gains
(excluding net realized gain) 759Impairment / (reversal of losses -As at end of current period 31,268
Rupees in thousand
31 March 2018
94 FIRST QUARTER REPORT
Window Takaful Operations
Notes to the Condensed InterimFinancial Information (Unaudited)For the Quarter Ended 31 March 2018
i) Transactions
Subsidiary Company
Contribution underwritten 135 - Contribution received 154 -
Other related parties
Contribution underwritten 26,994 8,237 Contribution received 15,716 5,854 Claims paid 3,889 3,972 Income on bank deposits 304 -
ii) Period end balancesOther related parties
Balances receivable 24,177 21,874 Balances payable 3,245 1,974 Cash and bank balances 54,171 -
31 March 2018
Rupees in thousand
31 March 2017
26 Subsequent events - non adjusting event
There are no significant events that need to be disclosed for the period ended 31 March 2018.
27 Date of authorization for issue
This condensed interim financial information was authorized for issue on 23 April 2018 by the Board of Directors of the Operator.
28 General
28.1 Corresponding figures have been rearranged and reclassified for better presentation, where considered necessary.
28.2 Figures have been rounded off to the nearest thousand rupees unless other wise stated.
25 Transactions with related parties
The Operator has related party relationship with its associates, subsidiary company, employee retirement benefit plans, key management personnel and other parties. All transactions involving related parties arising in the normal course of business are conducted at commercial terms and conditions. Balances and transactions with related party are disclosed in relevant notes to this financial statements.
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Umar Virk
Director
Muhammad Asim Nagi
Chief Financial Officer
Shaikh Muhammad Jawed
Director
95ADAMJEE INSURANCE
Notes
96 FIRST QUARTER REPORT
Window Takaful Operations
Notes