CONTENTS...Rehan Ahmed Khan, F.C.A., A.C.M.A. Executive Director Jehangir Bashir Nawaz Auditors M/s...
Transcript of CONTENTS...Rehan Ahmed Khan, F.C.A., A.C.M.A. Executive Director Jehangir Bashir Nawaz Auditors M/s...
CONTENTS
Vision 1
Core Values 2
Company Information 3
Directors’ Report on Unconsolidated Financial Statements 5
Auditors’ Review Report to the Members 6
Unconsolidated Financial Statements 8
Directors’ Report on Consolidated Financial Statements 40
Consolidated Financial Statements 41
Our will is to Explore, Innovate and Differentiate.Our passion is to provide leadership tothe Insurance Industry.
VISION
THE POWEROF VISION
THE POWEROF BELIEF
At Adamjee Insurance its our belief that commitment, passion and a thirst foruncompromising quality leads you to the excellence that we today are recognized for.
CORE VALUES
Integrity: Transparency and Honesty without CompromiseHumility: Empathy, Self Esteem and Respect in all relationshipsFun at Workplace: Work Life BalanceCorporate Social Responsibility: Service to Humanity
COMPANY INFORMATION
Board of Directors
Umer Mansha ChairmanAhmed Ebrahim Hasham DirectorAli Munir DirectorAlman Aslam DirectorFredrik Coenrard De Beer DirectorHassan Mansha DirectorIbrahim Shamsi DirectorKhalid Qadeer Qureshi DirectorMuhammad Usman Ali Usmani DirectorS. M. Jawed DirectorManzar Mushtaq Managing Director
& CEO
AdvisorMian Muhammad Mansha
Audit CommitteeUmer Mansha ChairmanAhmed Ebrahim Hasham MemberAli Munir MemberIbrahim Shamsi MemberS. M. Jawed Member
Human Resource CommitteeHassan Mansha ChairmanIbrahim Shamsi MemberUmer Mansha MemberManzar Mushtaq Member
Risk Management CommitteeS. M. Jawed ChairmanAli Munir MemberUmer Mansha Member
Strategic CommitteeUmer Mansha ChairmanAlman Aslam MemberS. M. Jawed MemberManzar Mushtaq Member
SecretaryTameez-ul-Haque,F.C.A.
03HALF YEARLY REPORTJUNE, 2011
Chief Financial OfficerMudassar Zubair Ahmed Mirza,A.C.A., A.C.M.A. (UK)
Head of Internal AuditRehan Ahmed Khan,F.C.A., A.C.M.A.
Executive DirectorJehangir Bashir Nawaz
AuditorsM/s Riaz Ahmad & Co.Chartered Accountants, Karachi
Shares RegistrarTechnology Trade (Pvt.) LimitedDagia House, 241-C, Block-2, P.E.C.H.S.,Off Shahrah-e-Quaideen, KarachiPhone: (92-21) 34391316-7, 34387960-1Fax: (92-21) 34391318
BankersAskari Bank LimitedBank Alfalah LimitedBank Al-Habib LimitedBarclays Bank PLC, PakistanCitibank N.A.Habib Bank LimitedHSBC Bank Middle East LimitedKASHF Microfinance Bank LimitedMCB Bank LimitedNational Bank of PakistanNIB Bank LimitedOman International Bank S.A.O.G.Rozgar Microfinance Bank LimitedSoneri Bank LimitedStandard Chartered Bank LimitedTameer Micro Finance Bank LimitedUnited Bank LimitedZarai Taraqiati Bank Limited
Registered Office1st Floor, ISE Tower,55-B, Jinnah Avenue,Blue Area, IslamabadUAN: (92-51) 111-242-111Fax: (92-51) 2894109, 2894110E-mail: [email protected]: www.adamjeeinsurance.com
04 HALF YEARLY REPORTJUNE, 2011
05
DIRECTORS' REPORT TO THE MEMBERS ONUNCONSOLIDATED FINANCIAL STATEMENTSFOR THE HALF YEAR ENDED 30 JUNE 2011
HALF YEARLY REPORTJUNE, 2011
On behalf of the Board, I am pleased to present the unconsolidated financial statements of the Companyfor the half year ended 30 June 2011:
The highlights for the period under review are as under:
30 June 30 June2011 2010
(Rupees in thousand)
Gross Premium 5,593,685 5,858,280 Net Premium 3,720,575 3,431,086Underwriting Results 299,538 392,272Investment Income 445,605 223,383Profit Before Tax 430,685 385,918Profit After Tax 317,859 298,689
Earning per Share (Rupees) 2.57 2.41
The Gross Premium of the Company has declined by 5% where as the Net Premium has increased by 8%.Net Claims and Net Commission have reduced by 15% and 6% respectively over the corresponding periodof last year.
The Investment Income of the Company has increased by 99% as compared to last year and the ProfitBefore and After Tax have increased by 12 % and 6 % respectively from the same period of the last year.
During April to June quarter, Ms. Nabiha Shahnawaz Cheema resigned as a Director. The Board filled thecasual vacancy by appointing Mr. Fredrik Coenrard de Beer in her place for the remainder of term.
I am pleased to inform you that the Board of Directors has declared Interim Cash Dividend of Re.1.0/-per share.
We thank our shareholders, valued customers, employees and development staff for their sustained supportin ensuring the continued success of our Company and trusting Adamjee Insurance as their brand of firstchoice. We are also grateful to the Insurance Division, Security Exchange Commission of Pakistan for theircontinued guidance and assistance.
On Behalf of Board of Directors
Lahore: 30 August 2011 Manzar MushtaqManaging Director and Chief Executive
AUDITORS' REPORT TO THE MEMBERSON REVIEW OF UNCONSOLIDATED CONDENSED INTERIMFINANCIAL INFORMATION
06 HALF YEARLY REPORTJUNE, 2011
Introduction
We have reviewed the accompanying unconsolidated condensed interim balance sheet of ADAMJEEINSURANCE COMPANY LIMITED as at 30 June 2011 and the related:
(i) unconsolidated condensed interim profit and loss account;(ii) unconsolidated condensed interim statement of comprehensive income(iii) unconsolidated condensed interim statement of changes in equity;(iv) unconsolidated condensed interim cash flow statement;(v) unconsolidated condensed interim statement of premiums;(vi) unconsolidated condensed interim statement of claims;(vii) unconsolidated condensed interim statement of expenses;(viii) unconsolidated condensed interim statement of investment income; and
notes forming part thereof for the six-month period then ended (here-in-after referred to as the “unconsolidatedcondensed interim financial information”). Management is responsible for the preparation and presentationof this unconsolidated condensed interim financial information in accordance with approved accountingstandards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusionon this unconsolidated condensed interim financial information based on our review. The figures of theunconsolidated condensed interim profit and loss account, unconsolidated condensed interim statementof premium, unconsolidated condensed interim statement of claims, unconsolidated condensed interimstatement of expenses and unconsolidated condensed interim statement of investment income for thequarters ended 30 June 2011 and 2010 have not been reviewed and we do not express a conclusion onthem as we are required to review only the cumulative figures for the six-month period ended 30 June 2011.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Reviewof Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interimfinancial information consists of making inquiries, primarily of persons responsible for financial and accountingmatters, and applying analytical and other review procedures. A review is substantially less in scope thanan audit conducted in accordance with International Standards on Auditing and consequently does notenable us to obtain assurance that we would become aware of all significant matters that might be identifiedin an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanyingunconsolidated condensed interim financial information is not prepared, in all material respects, in accordancewith approved accounting standards as applicable in Pakistan for interim financial reporting.
RIAZ AHMAD & COMPANYChartered Accountants
Name of engagement partner:Muhammad Kamran Nasir
KARACHI: 30 August 2011
THE POWEROF ACCURACY
At Adamjee Insurance we don’t make mistakes, we can’t afford to. In a business thatprides itself in numbers, accuracy becomes the name of the game. Each number eachvalue is checked and vetted on multiple levels and that’s what defines our quest forexcellence.
Unconsolidated CondensedInterim Financial Statements (Unaudited)For the Half Year Ended 30 June 2011
09
UNCONSOLIDATED CONDENSEDINTERIM BALANCE SHEET (UNAUDITED)AS AT 30 JUNE 2011
(Unaudited) (Audited)Note 30 June 31 December
2011 2010 –––––––(Rupees in thousand)––––––
Share capital and reservesAuthorized share capital 1,500,000 1,500,000
Paid-up share capital 1,237,045 1,237,045
Retained earnings 8,766,408 8,634,106Reserves 1,165,745 1,163,848
9,932,153 9,797,954
Total equity 11,169,198 11,034,999
Underwriting provisionsProvision for outstanding claims (including IBNR) 7,193,363 7,980,409Provision for unearned premium 4,606,328 5,017,435Commission income unearned 260,339 305,434
Total underwriting provisions 12,060,030 13,303,278
Deferred liabilitiesDeferred taxation 132,933 68,353Staff retirement benefits 21,333 17,326
Creditors and AccrualsPremiums received in advance 131,349 75,329Amounts due to other insurers / reinsurers 1,136,905 1,581,965Accrued expenses 94,322 147,995Other creditors and accruals 1,661,369 1,520,732
3,023,945 3,326,021
BorrowingsLiabilities against assets subject to finance lease 80,316 107,637
Other liabilitiesUnclaimed dividends 34,704 29,121
Total liabilities 15,353,261 16,851,736
CONTINGENCIES AND COMMITMENTS 6
TOTAL EQUITY AND LIABILITIES 26,522,459 27,886,735
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
HALF YEARLY REPORTJUNE, 2011
10
(Unaudited) (Audited)Note 30 June 31 December
2011 2010 –––––––(Rupees in thousand)––––––
Cash and bank depositsCash and other equivalents 71,196 59,393Current and other accounts 944,966 1,060,597Deposits maturing within 12 months 988,977 1,584,827
2,005,139 2,704,817Loans
To employees 25,282 22,086
Investments 7 9,730,276 9,406,998
Current assets- othersPremiums due but unpaid 8 4,212,127 4,546,222Amounts due from other insurers / reinsurers 9 841,334 993,584Salvage recoveries accrued 204,910 99,636Premium and claim reserves retained by cedants 23,252 23,252Accrued investment income 18,817 33,445Reinsurance recoveries against outstanding claims 5,732,868 6,253,202Taxation - payments less provision 73,578 43,697Deferred commission expense 515,302 512,222Prepayments 1,782,109 1,829,112Sundry receivables 322,774 317,071
13,727,071 14,651,443Fixed Assets - Tangible & Intangible 10
OwnedLand and buildings 279,432 281,472Furniture and fixtures 65,332 62,289Motor vehicles 205,940 197,252Machinery and equipment 278,279 316,190Computers and related accessories 48,220 52,270Intangible asset - computer software 44,843 48,475
922,046 957,948
LeasedMotor vehicles 112,645 143,443
TOTAL ASSETS 26,522,459 27,886,735
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
11
UNCONSOLIDATED CONDENSED INTERIMPROFIT AND LOSS ACCOUNT (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Fire andPropertyDamage
Marine,Aviation and
TransportMotor Miscellaneous Treaty
Half year ended30 June
2011
Half year ended30 June
2010
(Rupees in thousand)
Net premium revenue 648,991 510,914 1,525,335 1,035,335 - 3,720,575 3,431,086Net claims (432,424) (233,038) (1,109,041) (739,627) - (2,514,130) (2,187,274)Expenses (115,868) (90,453) (249,556) (185,049) - (640,926) (601,619)Net commission (50,238) (85,000) (131,210) 467 - (265,981) (249,921)
Underwriting result 50,461 102,423 35,528 111,126 - 299,538 392,272
Investment income 445,605 223,383Rental income 330 718Other income 87,579 71,013
833,052 687,386General and administration expenses (392,746) (291,452)Exchange gain-net 251 207Finance charge on lease rentals (9,872) (10,223)
Profit before tax 430,685 385,918
Provision for taxation- Current (48,246) (98,721)- Deferred (64,580) 11,492
Profit after tax 317,859 298,689
Profit and loss appropriation account
Balance at the commencement of the period 8,634,106 8,520,042Profit after tax for the period 317,859 298,689Final dividend for the year ended 31 December 2010 Rs. 1.5/- per share (2009: Rs. 1.5/- per share) (185,557) (168,688)
Issue of bonus shares for the year ended 31 December 2010 Nil (2009:10 percent) - (112,459)
Balance unappropriated profit at the end of the period 8,766,408 8,537,584
(Rupees)
Earnings per share - basic and diluted 2.57 2.41
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
Revenue account
Fire andPropertyDamage
Marine,Aviation and
TransportMotor Miscellaneous Treaty
Quarter ended30 June
2011
Quarter ended30 June
2010
(Rupees in thousand)
Revenue accountNet premium revenue 331,269 200,208 732,505 471,779 - 1,735,761 1,708,894Net claims (196,542) (112,785) (567,615) (324,754) - (1,201,696) (1,120,519)Expenses (67,650) (43,590) (139,218) (99,407) - (349,865) (293,760)Net commission (23,828) (35,948) (62,549) (12,429) - (134,754) (134,755)
Underwriting result 43,249 7,885 (36,877) 35,189 - 49,446 159,860
Investment income 247,121 2,208Rental income 165 164Other income 52,200 33,104
348,932 195,336General and administration expenses (276,658) (138,664)Exchange loss-net (43) (193)Finance charge on lease rentals (6,150) (4,875)
Profit before tax 66,081 51,604
Provision for taxation- Current 13,444 (11,968)- Deferred (50,489) 11,492
Profit after tax 29,036 51,128
(Rupees)
Earnings per share - basic and diluted 0.23 0.41
UNCONSOLIDATED CONDENSED INTERIMPROFIT AND LOSS ACCOUNT (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
12
BUSINESS UNDERWRITTEN INSIDE PAKISTAN
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Revenue accountNet premium revenue 326,573 188,269 486,738 466,485 - 1,468,065 1,393,327Net claims (196,522) (111,741) (400,249) (324,322) - (1,032,834) (957,057)Expenses (66,937) (41,759) (100,956) (98,608) - (308,260) (258,457)Net commission (24,273) (34,586) (36,449) (12,125) - (107,433) (115,473)
Underwriting result 38,841 183 (50,916) 31,430 - 19,538 62,340
Investment income 247,121 2,208Rental income 165 164Other income 47,530 25,635
314,354 90,347
General and administration expenses (246,247) (119,900)Exchange loss-net (46) (193)Finance charge on lease rentals (6,150) (4,875)
Profit before tax 61,911 (34,621)
Fire andPropertyDamage
Marine,Aviation and
TransportMotor Miscellaneous Treaty
Quarter ended30 June
2011
Quarter ended30 June
2010
(Rupees in thousand)
Fire andPropertyDamage
Marine,Aviation and
TransportMotor Miscellaneous Treaty
Half year ended30 June
2011
Half year ended30 June
2010
(Rupees in thousand)
Revenue accountNet premium revenue 639,835 486,753 997,887 1,025,265 - 3,149,740 2,818,165Net claims (431,659) (231,933) (769,947) (738,647) - (2,172,186) (1,862,728)Expenses (114,640) (87,212) (178,793) (183,698) - (564,343) (533,362)Net commission (50,840) (81,156) (77,247) 1,016 - (208,227) (208,038)
Underwriting result 42,696 86,452 (28,100) 103,936 - 204,984 214,037
Investment income 445,605 223,383Rental income 330 718Other income 71,810 57,617
722,729 495,755
General and administration expenses (350,780) (254,990)Exchange gain-net 248 207Finance charge on lease rentals (9,872) (10,223)
Profit before tax 362,325 230,749
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
13
UNCONSOLIDATED CONDENSED INTERIMPROFIT AND LOSS ACCOUNT (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
BUSINESS UNDERWRITTEN OUTSIDE PAKISTAN
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Fire andPropertyDamage
Marine,Aviation and
TransportMotor Miscellaneous Treaty
Quarter ended30 June
2011
Quarter ended30 June
2010
(Rupees in thousand)
Revenue accountNet premium revenue 4,696 11,939 245,767 5,294 - 267,696 315,567Net claims (20) (1,044) (167,366) (432) - (168,862) (163,462)Expenses (713) (1,831) (38,262) (799) - (41,605) (35,303)Net commission 445 (1,362) (26,100) (304) - (27,321) (19,282)
Underwriting result 4,408 7,702 14,039 3,759 - 29,908 97,520
Other income 4,670 7,469
34,578 104,989
General and administration expenses (30,411) (18,764)Exchange gain-net 3 -
Profit before tax 4,170 86,225
Fire andPropertyDamage
Marine,Aviation and
TransportMotor Miscellaneous Treaty
Half year ended30 June
2011
Half year ended30 June
2010
(Rupees in thousand)
Revenue accountNet premium revenue 9,156 24,161 527,448 10,070 - 570,835 612,921Net claims (765) (1,105) (339,094) (980) - (341,944) (324,546)Expenses (1,228) (3,241) (70,763) (1,351) - (76,583) (68,257)Net commission 602 (3,844) (53,963) (549) - (57,754) (41,883)
Underwriting result 7,765 15,971 63,628 7,190 - 94,554 178,235
Other income 15,769 13,396
110,323 191,631
General and administration expenses (41,966) (36,462)Exchange gain-net 3 -
Profit before tax 68,360 155,169
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
UNCONSOLIDATED CONDENSED INTERIMSTATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
14 HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
(Unaudited) (Unaudited) (Unaudited) (Unaudited)Half year Half year Quarter Quarter
ended ended ended ended30 June 30 June 30 June 30 June
2011 2010 2011 2010
(Rupees in thousand)
Profit for the period 317,859 298,689 29,036 51,128
Other comprehensive income:
Effect of translation of net investment in foreign branches 1,897 22,057 (9,467) 4,452
Total comprehensive income for the period 319,756 320,746 19,569 55,580
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
15
UNCONSOLIDATED CONDENSED INTERIMSTATEMENT OF CHANGES IN EQUITY (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Share Capital Capital Reserves Revenue Reserves
Issued,subscribedand paid-up
Reserve forissue of bonus
shares
Reserve forexceptional
losses
Investmentfluctuation
reserve
Exchangetranslation
reserve
Generalreserve
Retainedearnings
Total
(Rupees in thousand)
Balance as at 31 December 2009 1,124,586 - 22,859 3,764 173,424 936,500 8,520,042 10,781,175
Total comprehensive income for thehalf year ended 30 June 2010 - - - - 22,057 - 298,689 320,746
Final dividend for the year ended31 December 2009 @ 15 % (Rupees 1.5/- per share) - - - - - - (168,688) (168,688)
Transferred to reserve for issue ofbonus shares - 112,459 - - - - (112,459) -
Issue of bonus shares for the yearended 31 December 2009 @ 10 % 112,459 (112,459) - - - - - -
Balance as at 30 June 2010 1,237,045 - 22,859 3,764 195,481 936,500 8,537,584 10,933,233
Balance as at 31 December 2010 1,237,045 - 22,859 3,764 200,725 936,500 8,634,106 11,034,999
Total comprehensive income for thehalf year ended 30 June 2011 - - - - 1,897 - 317,859 319,756
Final dividend for the year ended31 December 2010 @ 15%(Rupees 1.5/- per share) - - - - - - (185,557) (185,557)
Balance as at 30 June 2011 1,237,045 - 22,859 3,764 202,622 936,500 8,766,408 11,169,198
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
16
Half year ended Half year ended30 June 2011 30 June 2010
–––––––(Rupees in thousand)––––––
Operating Cash Flows
a) Underwriting activitiesPremiums received 5,999,282 5,934,078Reinsurance premiums paid (2,600,027) (2,186,342)Claims paid (5,058,440) (3,186,438)Surrenders paid (28,886) (59,718)Reinsurance and other recoveries received 2,304,426 711,008Commissions paid (589,584) (576,225)Commissions received 328,646 370,086Other underwriting payments (569,996) (392,818)
Net cash (used in) / flow from underwriting activities (214,579) 613,631
b) Other operating activitiesIncome tax paid (78,127) (73,246)General and management expenses paid (408,992) (234,583)Loans advanced (13,551) (13,086)Loan repayments received 28,022 19,894Other receipts 15,732 4,168
Net cash used in other operating activities (456,916) (296,853)
Total cash (used in) / flow from all operating activities (671,495) 316,778
Investment activitiesProfit/ return received 77,181 65,936Return on Pakistan Investment Bonds 7,596 7,113Income received on TFCs 10,390 13,214Dividends received 311,404 261,632Income received on rent 330 3,085Payments for investments (2,047,831) (3,304,331)Proceeds from disposal of investments 1,843,133 3,612,124Fixed capital expenditure - Tangible assets (60,060) (73,197)Fixed capital expenditure - Intangible assets (4,467) (533)Proceeds from disposal of fixed assets 51,310 19,864
Total cash flow from investing activities 188,986 604,907
Financing activitiesDividends paid (179,975) (166,143)Payments on finance lease (37,194) (22,578)
Total cash used in financing activities (217,169) (188,721)
Net cash (used in) / inflow from all activities (699,678) 732,964Cash at the beginning of the period 2,699,993 2,152,653
Cash at the end of the period 2,000,315 2,885,617
HALF YEARLY REPORTJUNE, 2011
UNCONSOLIDATED CONDENSED INTERIMSTATEMENT OF CASH FLOWS (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
17
UNCONSOLIDATED CONDENSED INTERIMSTATEMENT OF CASH FLOWS (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
Half year ended Half year ended30 June 2011 30 June 2010
–––––––(Rupees in thousand)––––––
Reconciliation to Profit and Loss Account
Operating cash flows (671,495) 316,778Depreciation expense (91,808) (86,647)Provision for gratuity (4,008) (3,245)Other income - bank deposits 63,355 65,494Profit on disposal of fixed assets 20,552 1,559Finance charge on lease obligations (9,872) (10,223)Rental income 330 718(Decrease) / Increase in assets other than cash (913,620) 1,006,499Decrease / (Increase) in liabilities other than running finance 1,125,548 (614,630)
(481,018) 676,303
Others
Profit on sale of investments 191,283 26,430Amortization expense (8,665) (5,757)Decrease / (Increase) in unearned premium 411,107 (574,449)Amortization of income on Government Securities - net - 2,160Gain on sale of mutual fund units - 58,873Return on Pakistan Investment Bonds 6,491 7,474Decrease in loans (14,471) (6,808)Income tax paid 78,127 73,246Provision for diminution in value of investments (74,266) (129,518)Dividend income 307,329 245,479Income on Treasury Bills 2,845 -Other income - TFCs 11,923 12,485
911,703 (290,385)
Profit before taxation 430,685 385,918
Definition of cash
Cash comprises of cash in hand, bank balances excluding Rupees 4.824 million (2010: Rupees 4.451 million) heldunder lien, and other deposits which are readily convertible to cash and which are used in the cash management functionon a day-to-day basis.
Half year ended Half year ended30 June 2011 30 June 2010
–––––––(Rupees in thousand)––––––
Cash for the purposes of the Statement of Cash Flows consists of:
Cash and other equivalent 71,196 378
Current and other accounts 944,966 1,360,177
Deposits maturing within 12 months 984,153 1,525,062
Total cash and cash equivalents 2,000,315 2,885,617
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
UNCONSOLIDATED CONDENSED INTERIMSTATEMENT OF CASH FLOWS (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
18
Half year ended Half year ended30 June 2011 30 June 2010
–––––––(Rupees in thousand)––––––
Operating Cash Flows
a) Underwriting activitiesPremiums received 5,296,775 4,959,045Reinsurance premiums paid (2,324,329) (1,914,757)Claims paid (4,468,631) (2,729,104)Surrenders paid (27,807) (58,550)Reinsurance and other recoveries received 2,112,822 555,348Commissions paid (514,559) (481,170)Commissions received 291,505 334,240Other underwriting payments (512,243) (341,687)
Net cash (used in) / flow from underwriting activities (146,467) 323,365
b) Other operating activitiesIncome tax paid (78,127) (73,246)General and management expenses paid (368,005) (189,659)Loans advanced (12,762) (12,156)Loan repayments received 25,965 17,107Other receipts 2,624 2,620
Net cash used in other operating activities (430,305) (255,334)
Total cash (used in) / flow from all operating activities (576,772) 68,031
Investment activitiesProfit/ return received 60,970 54,313Return on Pakistan Investment Bonds 7,596 7,113Income received on TFCs 10,390 13,214Dividends received 311,404 261,632Income received on rent 330 3,085Payments for investments (2,047,831) (3,304,331)Proceeds from disposal of investments 1,843,133 3,612,124Fixed capital expenditure - Tangible assets (59,451) (73,197)Fixed capital expenditure - Intangible assets (4,025) (533)Proceeds from disposal of fixed assets 51,311 19,760
Total cash flow from investing activities 173,827 593,180
Financing activitiesDividends paid (179,975) (166,143)Payments on finance lease (37,194) (22,578)
Total cash used in financing activities (217,169) (188,721)
Net cash (used in) / inflow from all activities (620,114) 472,490Cash at the beginning of the period 1,536,471 1,240,605
Cash at the end of the period 916,357 1,713,095
BUSINESS UNDERWRITTEN INSIDE PAKISTAN
HALF YEARLY REPORTJUNE, 2011
19
UNCONSOLIDATED CONDENSED INTERIMSTATEMENT OF CASH FLOWS (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
Half year ended Half year ended30 June 2011 30 June 2010
–––––––(Rupees in thousand)––––––
Reconciliation to Profit and Loss Account
Operating cash flows (576,772) 68,031Depreciation expense (90,334) (85,069)Other income - bank deposits 48,882 53,520Profit on disposal of fixed assets 20,552 1,684Finance charge on lease obligations (9,872) (10,223)Rental income 330 718(Decrease) / Increase in assets other than cash (1,044,619) 864,543Decrease / (Increase) in liabilities other than running finance 1,202,033 (455,573)
(449,800) 437,631
Others
Profit on sale of investments 191,283 26,429Amortization expense (8,665) (5,757)Decrease / (Increase) in unearned premium 310,261 (492,803)Amortisation of income on Government Securities - net - 2,160Gain on sale of mutual fund units - 58,874Profit on Pakistan Investment Bonds 6,491 7,474Decrease in loans (13,203) (4,951)Income tax paid 78,127 73,246Provision for diminution in value of investments (74,266) (129,518)Dividend, investment and other income 307,329 245,479Income on Treasury Bills 2,845 -Other Income - TFCs 11,923 12,485
812,125 (206,882)
Profit before taxation 362,325 230,749
Definition of cash
Cash comprises of cash in hand, bank balances excluding Rupees 4.824 million (2010: Rupees 4.451 million) heldunder lien, and other deposits which are readily convertible to cash and which are used in the cash management functionon a day-to-day basis.
Half year ended Half year ended30 June 2011 30 June 2010
–––––––(Rupees in thousand)––––––
Cash for the purposes of the Statement of Cash Flows consists of:
Cash and other equivalent 70,481 145
Current and other accounts 841,358 338,115
Deposits maturing within 12 months 4,518 1,374,835
Total cash and cash equivalents 916,357 1,713,095
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
UNCONSOLIDATED CONDENSED INTERIMSTATEMENT OF CASH FLOWS (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
20
BUSINESS UNDERWRITTEN OUTSIDE PAKISTAN
Half year ended Half year ended30 June 2011 30 June 2010
–––––––(Rupees in thousand)––––––
Operating Cash Flows
a) Underwriting activitiesPremiums received 702,507 975,033Reinsurance premiums paid (275,698) (271,585)Claims paid (589,809) (457,334)Surrenders paid (1,079) (1,168)Reinsurance and other recoveries received 191,604 155,660Commissions paid (75,025) (95,055)Commissions received 37,141 35,846Other underwriting payments (57,753) (51,131)
Net cash (used in) / flow from underwriting activities (68,112) 290,266
b) Other operating activitiesIncome tax refund/ (paid) - -General and management expenses paid (40,987) (44,924)Loans advanced (789) (930)Loan repayments received 2,057 2,787Other receipts 13,108 1,548
Net cash used in other operating activities (26,611) (41,519)
Total cash (used in) / flow from all operating activities (94,723) 248,747
Investment activitiesProfit/ return received 16,211 11,623Return on Pakistan Investment Bonds - -Income received on TFCs - -Dividends received - -Payments for investments - -Proceeds from disposal of investments - -Fixed capital expenditure - Tangible assets (609) -Fixed capital expenditure - Intangible assets (442) -Proceeds from disposal of fixed assets - 104
Total cash flow from investing activities 15,160 11,727
Financing activitiesDividends paid - -Payments on finance lease - -
Total cash flow from financing activities - -
Net cash (used in) / inflow from all activities (79,563) 260,474Cash at the beginning of the period 1,163,522 912,048
Cash at the end of the period 1,083,959 1,172,522
HALF YEARLY REPORTJUNE, 2011
21
UNCONSOLIDATED CONDENSED INTERIMSTATEMENT OF CASH FLOWS (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
Half year ended Half year ended30 June 2011 30 June 2010
–––––––(Rupees in thousand)––––––
Reconciliation to Profit and Loss Account
Operating cash flows (94,723) 248,747Depreciation expense (1,474) (1,578)Provision for gratuity (4,008) (3,245)Other income - bank deposits 14,473 11,974Profit on disposal of fixed assets - (125)Finance charge on lease obligations - -Rental income - -Increase in assets other than cash 130,999 141,956Increase in liabilities other than running finance (76,485) (159,057)
(31,218) 238,672
Others
Profit on sale of investments - -Amortization expense - -Decrease / (Increase) in unearned premium 100,846 (81,646)Amortisation of income on Government Securities - net - -Gain on sale of mutual fund units - -Return on Pakistan Investment Bonds - -(Decrease) in loans (1,268) (1,857)Income tax paid - -Gratuity paid - -(Provision) / Reversal for diminution in value of investments - -Dividend, investment and other income - -Deposits paid - -Other income-TFCs - -
99,578 (83,503)
Profit before taxation 68,360 155,169
Definition of cash
Cash comprises of cash in hand, bank balances excluding Rupees Nil (2010: Rupees Nil) held under lien, andother deposits which are readily convertible to cash and which are used in the cash management function on aday-to-day basis.
Half year ended Half year ended30 June 2011 30 June 2010
–––––––(Rupees in thousand)––––––
Cash for the purposes of the Statement of Cash Flows consists of:
Cash and other equivalent 715 233
Current and other accounts 103,609 1,022,062
Deposits maturing within 12 months 979,635 150,227
Total cash and cash equivalents 1,083,959 1,172,522
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
UNCONSOLIDATED CONDENSED INTERIMSTATEMENT OF PREMIUMS (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
22 HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Class Premiumswritten
Unearned premiumreserve
Opening Closing
Premiumsearned
Reinsuranceceded
Reinsuranceexpense
Prepaid reinsurancepremium ceded
Net premiumrevenue
Half year ended30 June 2011
Half year ended30 June 2010
(Rupees in thousand)
Opening Closing
Direct and facultative
Fire and property damage 1,997,785 1,977,580 1,794,848 2,180,517 1,374,993 1,371,210 1,214,677 1,531,526 648,991 580,770
Marine, aviation and transport 723,825 57,988 93,785 688,028 184,599 12,199 19,684 177,114 510,914 490,786
Motor 1,640,293 1,760,996 1,682,633 1,718,656 176,877 175,330 158,886 193,321 1,525,335 1,693,453
Miscellaneous 1,231,782 1,220,871 1,035,062 1,417,591 426,828 215,786 260,358 382,256 1,035,335 666,077
Total 5,593,685 5,017,435 4,606,328 6,004,792 2,163,297 1,774,525 1,653,605 2,284,217 3,720,575 3,431,086
Treaty
Proportional - - - - - - - - - -
Total - - - - - - - - - -
Grand Total 5,593,685 5,017,435 4,606,328 6,004,792 2,163,297 1,774,525 1,653,605 2,284,217 3,720,575 3,431,086
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
Class Premiumswritten
Unearned premiumreserve
Opening Closing
Premiumsearned
Reinsuranceceded
Reinsuranceexpense
Prepaid reinsurancepremium ceded
Net premiumrevenue
Quarter ended30 June 2011
Quarter ended30 June 2010
(Rupees in thousand)
Opening Closing
Direct and facultative
Fire and property damage 1,081,995 1,815,920 1,794,848 1,103,067 826,916 1,159,559 1,214,677 771,798 331,269 220,995
Marine, aviation and transport 353,498 79,373 93,785 339,086 134,726 23,836 19,684 138,878 200,208 260,044
Motor 824,337 1,683,521 1,682,633 825,225 83,267 168,339 158,886 92,720 732,505 835,313
Miscellaneous 588,226 1,095,724 1,035,062 648,888 235,298 202,169 260,358 177,109 471,779 392,542
Total 2,848,056 4,674,538 4,606,328 2,916,266 1,280,207 1,553,903 1,653,605 1,180,505 1,735,761 1,708,894
Treaty
Proportional - - - - - - - - - -
Total - - - - - - - - - -
Grand Total 2,848,056 4,674,538 4,606,328 2,916,266 1,280,207 1,553,903 1,653,605 1,180,505 1,735,761 1,708,894
23
UNCONSOLIDATED CONDENSED INTERIMSTATEMENT OF PREMIUMS (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
BUSINESS UNDERWRITTEN INSIDE PAKISTAN
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Class Premiumswritten
Unearned premiumreserve
Opening Closing
Premiumsearned
Reinsuranceceded
Reinsuranceexpense
Prepaid reinsurancepremium ceded
Net premiumrevenue
Half year ended30 June 2011
Half year ended30 June 2010
(Rupees in thousand)
Opening Closing
Direct and facultative
Fire and property damage 1,958,998 1,928,688 1,748,945 2,138,741 1,347,701 1,330,808 1,179,603 1,498,906 639,835 568,255
Marine, aviation and transport 695,471 43,918 78,575 660,814 181,848 8,975 16,762 174,061 486,753 467,508
Motor 1,044,121 955,232 986,155 1,013,198 14,370 2,297 1,356 15,311 997,887 1,124,240
Miscellaneous 1,203,924 1,204,439 1,008,341 1,400,022 412,350 209,257 246,850 374,757 1,025,265 658,162
Total 4,902,514 4,132,277 3,822,016 5,212,775 1,956,269 1,551,337 1,444,571 2,063,035 3,149,740 2,818,165
Treaty
Proportional - - - - - - - - - -
Total - - - - - - - - - -
Grand Total 4,902,514 4,132,277 3,822,016 5,212,775 1,956,269 1,551,337 1,444,571 2,063,035 3,149,740 2,818,165
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
Class Premiumswritten
Unearned premiumreserve
Opening Closing
Premiumsearned
Reinsuranceceded
Reinsuranceexpense
Prepaid reinsurancepremium ceded
Net premiumrevenue
Quarter ended30 June 2011
Quarter ended30 June 2010
(Rupees in thousand)
Opening Closing
Direct and facultative
Fire and property damage 1,057,779 1,772,964 1,748,945 1,081,798 808,018 1,126,810 1,179,603 755,225 326,573 215,053
Marine, aviation and transport 344,952 59,252 78,575 325,629 133,061 21,061 16,762 137,360 188,269 247,643
Motor 509,684 970,724 986,155 494,253 6,340 2,531 1,356 7,515 486,738 542,479
Miscellaneous 570,646 1,077,303 1,008,341 639,608 225,005 194,968 246,850 173,123 466,485 388,152
Total 2,483,061 3,880,243 3,822,016 2,541,288 1,172,424 1,345,370 1,444,571 1,073,223 1,468,065 1,393,327
Treaty
Proportional - - - - - - - - - -
Total - - - - - - - - - -
Grand Total 2,483,061 3,880,243 3,822,016 2,541,288 1,172,424 1,345,370 1,444,571 1,073,223 1,468,065 1,393,327
UNCONSOLIDATED CONDENSED INTERIMSTATEMENT OF PREMIUMS (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
24
BUSINESS UNDERWRITTEN OUTSIDE PAKISTAN
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Class Premiumswritten
Unearned premiumreserve
Opening Closing
Premiumsearned
Reinsuranceceded
Reinsuranceexpense
Prepaid reinsurancepremium ceded
Net premiumrevenue
Half year ended30 June 2011
Half year ended30 June 2010
(Rupees in thousand)
Opening Closing
Direct and facultative
Fire and property damage 38,787 48,892 45,903 41,776 27,292 40,402 35,074 32,620 9,156 12,515
Marine, aviation and transport 28,354 14,070 15,210 27,214 2,751 3,224 2,922 3,053 24,161 23,278
Motor 596,172 805,764 696,478 705,458 162,507 173,033 157,530 178,010 527,448 569,213
Miscellaneous 27,858 16,432 26,721 17,569 14,478 6,529 13,508 7,499 10,070 7,915
Total 691,171 885,158 784,312 792,017 207,028 223,188 209,034 221,182 570,835 612,921
Treaty
Proportional - - - - - - - - - -
Total - - - - - - - - - -
Grand Total 691,171 885,158 784,312 792,017 207,028 223,188 209,034 221,182 570,835 612,921
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
Class Premiumswritten
Unearned premiumreserve
Opening Closing
Premiumsearned
Reinsuranceceded
Reinsuranceexpense
Prepaid reinsurancepremium ceded
Net premiumrevenue
Quarter ended30 June 2011
Quarter ended30 June 2010
(Rupees in thousand)
Opening Closing
Direct and facultative
Fire and property damage 24,216 42,956 45,903 21,269 18,898 32,749 35,074 16,573 4,696 5,942
Marine, aviation and transport 8,546 20,121 15,210 13,457 1,665 2,775 2,922 1,518 11,939 12,401
Motor 314,653 712,797 696,478 330,972 76,927 165,808 157,530 85,205 245,767 292,834
Miscellaneous 17,580 18,421 26,721 9,280 10,293 7,201 13,508 3,986 5,294 4,390
Total 364,995 794,295 784,312 374,978 107,783 208,533 209,034 107,282 267,696 315,567
Treaty
Proportional - - - - - - - - - -
Total - - - - - - - - - -
Grand Total 364,995 794,295 784,312 374,978 107,783 208,533 209,034 107,282 267,696 315,567
25
UNCONSOLIDATED CONDENSED INTERIMSTATEMENT OF CLAIMS (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Quarter ended30 June 2011
Quarter ended30 June 2010
(Rupees in thousand)
Class Total claimspaid
Outstanding claims
Opening Closing
Claimsexpenses
Reinsuranceand otherrecoveriesreceived
Reinsuranceand otherrecoveriesrevenue
Reinsurance and otherrecoveries in respect of
outstanding claims
Net claims expense
Opening Closing
Direct and facultative
Fire and property damage 718,882 3,916,347 4,736,133 1,538,668 341,821 3,285,485 4,285,790 1,342,126 196,542 170,295
Marine, aviation and transport 125,878 392,935 409,960 142,903 1,117 165,932 194,933 30,118 112,785 124,562
Motor 673,805 1,533,231 1,626,923 767,497 115,067 1,092,515 1,177,330 199,882 567,615 574,882
Miscellaneous 1,007,968 978,884 400,015 429,099 521,583 696,963 279,725 104,345 324,754 250,320
Total 2,526,533 6,821,397 7,173,031 2,878,167 979,588 5,240,895 5,937,778 1,676,471 1,201,696 1,120,059
Treaty
Proportional - 20,332 20,332 - - - - - - 460
Total - 20,332 20,332 - - - - - - 460
Grand Total 2,526,533 6,841,729 7,193,363 2,878,167 979,588 5,240,895 5,937,778 1,676,471 1,201,696 1,120,519
Half year ended30 June 2011
Half year ended30 June 2010
(Rupees in thousand)
Class Total claimspaid
Outstanding claims
Opening Closing
Claimsexpenses
Reinsuranceand otherrecoveriesreceived
Reinsuranceand otherrecoveriesrevenue
Reinsurance and otherrecoveries in respect of
outstanding claims
Net claims expense
Opening Closing
Direct and facultative
Fire and property damage 1,952,057 4,893,957 4,736,133 1,794,233 1,410,759 4,334,740 4,285,790 1,361,809 432,424 373,109
Marine, aviation and transport 279,121 426,065 409,960 263,016 1,117 166,072 194,933 29,978 233,038 222,673
Motor 1,394,815 1,540,738 1,626,923 1,481,000 189,782 995,153 1,177,330 371,959 1,109,041 1,131,605
Miscellaneous 1,420,638 1,099,317 400,015 721,336 558,857 856,873 279,725 (18,291) 739,627 459,427
Total 5,046,631 7,960,077 7,173,031 4,259,585 2,160,515 6,352,838 5,937,778 1,745,455 2,514,130 2,186,814
Treaty
Proportional - 20,332 20,332 - - - - - - 460
Total - 20,332 20,332 - - - - - - 460
Grand Total 5,046,631 7,980,409 7,193,363 4,259,585 2,160,515 6,352,838 5,937,778 1,745,455 2,514,130 2,187,274
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
UNCONSOLIDATED CONDENSED INTERIMSTATEMENT OF CLAIMS (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
26
BUSINESS UNDERWRITTEN INSIDE PAKISTAN
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Quarter ended30 June 2011
Quarter ended30 June 2010
(Rupees in thousand)
Class Total claimspaid
Outstanding claims
Opening Closing
Claimsexpenses
Reinsuranceand otherrecoveriesreceived
Reinsuranceand otherrecoveriesrevenue
Reinsurance and otherrecoveries in respect of
outstanding claims
Net claims expense
Opening Closing
Direct and facultative
Fire and property damage 718,770 3,913,940 4,733,704 1,538,534 341,726 3,283,402 4,283,688 1,342,012 196,522 170,268
Marine, aviation and transport 125,878 382,080 398,063 141,861 1,117 165,930 194,933 30,120 111,741 119,131
Motor 421,669 435,503 408,866 395,032 1,426 88,319 81,676 (5,217) 400,249 416,892
Miscellaneous 1,005,861 977,934 399,043 426,970 519,897 696,822 279,573 102,648 324,322 250,306
Total 2,272,178 5,709,457 5,939,676 2,502,397 864,166 4,234,473 4,839,870 1,469,563 1,032,834 956,597
Treaty
Proportional - 20,332 20,332 - - - - - - 460
Total - 20,332 20,332 - - - - - - 460
Grand Total 2,272,178 5,729,789 5,960,008 2,502,397 864,166 4,234,473 4,839,870 1,469,563 1,032,834 957,057
Half year ended30 June 2011
Half year ended30 June 2010
(Rupees in thousand)
Class Total claimspaid
Outstanding claims
Opening Closing
Claimsexpenses
Reinsuranceand otherrecoveriesreceived
Reinsuranceand otherrecoveriesrevenue
Reinsurance and otherrecoveries in respect of
outstanding claims
Net claims expense
Opening Closing
Direct and facultative
Fire and property damage 1,943,716 4,888,290 4,733,704 1,789,130 1,403,669 4,329,886 4,283,688 1,357,471 431,659 371,932
Marine, aviation and transport 278,722 414,872 398,063 261,913 1,117 166,070 194,933 29,980 231,933 217,034
Motor 830,722 468,010 408,866 771,578 1,426 81,471 81,676 1,631 769,947 813,910
Miscellaneous 1,415,471 1,098,068 399,043 716,446 554,723 856,497 279,573 (22,201) 738,647 459,392
Total 4,468,631 6,869,240 5,939,676 3,539,067 1,960,935 5,433,924 4,839,870 1,366,881 2,172,186 1,862,268
Treaty
Proportional - 20,332 20,332 - - - - - - 460
Total - 20,332 20,332 - - - - - - 460
Grand Total 4,468,631 6,889,572 5,960,008 3,539,067 1,960,935 5,433,924 4,839,870 1,366,881 2,172,186 1,862,728
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
27
UNCONSOLIDATED CONDENSED INTERIMSTATEMENT OF CLAIMS (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
BUSINESS UNDERWRITTEN OUTSIDE PAKISTAN
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Quarter ended30 June 2011
Quarter ended30 June 2010
(Rupees in thousand)
Class Total claimspaid
Outstanding claims
Opening Closing
Claimsexpenses
Reinsuranceand otherrecoveriesreceived
Reinsuranceand otherrecoveriesrevenue
Reinsurance and otherrecoveries in respect of
outstanding claims
Net claims expense
Opening Closing
Direct and facultative
Fire and property damage 112 2,407 2,429 134 95 2,083 2,102 114 20 27
Marine, aviation and transport - 10,855 11,897 1,042 - 2 - (2) 1,044 5,431
Motor 252,136 1,097,728 1,218,057 372,465 113,641 1,004,196 1,095,654 205,099 167,366 157,990
Miscellaneous 2,107 950 972 2,129 1,686 141 152 1,697 432 14
Total 254,355 1,111,940 1,233,355 375,770 115,422 1,006,422 1,097,908 206,908 168,862 163,462
Treaty
Proportional - - - - - - - - - -
Total - - - - - - - - - -
Grand Total 254,355 1,111,940 1,233,355 375,770 115,422 1,006,422 1,097,908 206,908 168,862 163,462
Half year ended30 June 2011
Half year ended30 June 2010
(Rupees in thousand)
Class Total claimspaid
Outstanding claims
Opening Closing
Claimsexpenses
Reinsuranceand otherrecoveriesreceived
Reinsuranceand otherrecoveriesrevenue
Reinsurance and otherrecoveries in respect of
outstanding claims
Net claims expense
Opening Closing
Direct and facultative
Fire and property damage 8,341 5,667 2,429 5,103 7,090 4,854 2,102 4,338 765 1,177
Marine, aviation and transport 399 11,193 11,897 1,103 - 2 - (2) 1,105 5,639
Motor 564,093 1,072,728 1,218,057 709,422 188,356 913,682 1,095,654 370,328 339,094 317,695
Miscellaneous 5,167 1,249 972 4,890 4,134 376 152 3,910 980 35
Total 578,000 1,090,837 1,233,355 720,518 199,580 918,914 1,097,908 378,574 341,944 324,546
Treaty
Proportional - - - - - - - - - -
Total - - - - - - - - - -
Grand Total 578,000 1,090,837 1,233,355 720,518 199,580 918,914 1,097,908 378,574 341,944 324,546
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
UNCONSOLIDATED CONDENSED INTERIMSTATEMENT OF EXPENSES (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
28 HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Quarter ended30 June 2011
Quarter ended30 June 2010
(Rupees in thousand)
Class Commissionspaid orpayable
Deferred commission
Opening Closing
Netcommission
expense
Othermanagement
expenses
Underwritingexpense
Net underwriting expenseCommission
fromreinsurer
Direct and facultative
Fire and property damage 177,568 259,742 290,411 146,899 67,650 214,549 123,071 91,478 75,728
Marine, aviation and transport 56,137 5,818 15,894 46,061 43,590 89,651 10,113 79,538 97,786
Motor 66,658 165,529 154,965 77,222 139,218 216,440 14,673 201,767 190,300
Miscellaneous 38,387 59,826 54,032 44,181 99,407 143,588 31,752 111,836 64,701
Total 338,750 490,915 515,302 314,363 349,865 664,228 179,609 484,619 428,515
Treaty
Proportional - - - - - - - - -
Total - - - - - - - - -
Grand Total 338,750 490,915 515,302 314,363 349,865 664,228 179,609 484,619 428,515
Half year ended30 June 2011
Half year ended30 June 2010
(Rupees in thousand)
Class Commissionspaid orpayable
Deferred commission
Opening Closing
Netcommission
expense
Othermanagement
expenses
Underwritingexpense
Net underwriting expenseCommission
fromreinsurer
Direct and facultative
Fire and property damage 322,887 259,844 290,411 292,320 115,868 408,188 242,082 166,106 171,010
Marine, aviation and transport 100,520 11,662 15,894 96,288 90,453 186,741 11,288 175,453 178,606
Motor 154,858 162,226 154,965 162,119 249,556 411,675 30,909 380,766 389,426
Miscellaneous 64,537 78,490 54,032 88,995 185,049 274,044 89,462 184,582 112,498
Total 642,802 512,222 515,302 639,722 640,926 1,280,648 373,741 906,907 851,540
Treaty
Proportional - - - - - - - - -
Total - - - - - - - - -
Grand Total 642,802 512,222 515,302 639,722 640,926 1,280,648 373,741 906,907 851,540
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
29
UNCONSOLIDATED CONDENSED INTERIMSTATEMENT OF EXPENSES (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
BUSINESS UNDERWRITTEN INSIDE PAKISTAN
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Quarter ended30 June 2011
Quarter ended30 June 2010
(Rupees in thousand)
Class Commissionspaid orpayable
Deferred commission
Opening Closing
Netcommission
expense
Othermanagement
expenses
Underwritingexpense
Net underwriting expenseCommission
fromreinsurer
Direct and facultative
Fire and property damage 174,762 250,891 282,353 143,300 66,937 210,237 119,027 91,210 75,914
Marine, aviation and transport 55,049 4,402 14,979 44,472 41,759 86,231 9,886 76,345 92,858
Motor 43,454 73,992 80,637 36,809 100,956 137,765 360 137,405 140,467
Miscellaneous 37,714 57,868 52,271 43,311 98,608 141,919 31,186 110,733 64,691
Total 310,979 387,153 430,240 267,892 308,260 576,152 160,459 415,693 373,930
Treaty
Proportional - - - - - - - - -
Total - - - - - - - - -
Grand Total 310,979 387,153 430,240 267,892 308,260 576,152 160,459 415,693 373,930
Half year ended30 June 2011
Half year ended30 June 2010
(Rupees in thousand)
Class Commissionspaid orpayable
Deferred commission
Opening Closing
Netcommission
expense
Othermanagement
expenses
Underwritingexpense
Net underwriting expenseCommission
fromreinsurer
Direct and facultative
Fire and property damage 316,562 250,919 282,353 285,128 114,640 399,768 234,288 165,480 171,106
Marine, aviation and transport 97,971 9,004 14,979 91,996 87,212 179,208 10,840 168,368 166,686
Motor 89,237 69,412 80,637 78,012 178,793 256,805 765 256,040 291,066
Miscellaneous 62,723 76,871 52,271 87,323 183,698 271,021 88,339 182,682 112,542
Total 566,493 406,206 430,240 542,459 564,343 1,106,802 334,232 772,570 741,400
Treaty
Proportional - - - - - - - - -
Total - - - - - - - - -
Grand Total 566,493 406,206 430,240 542,459 564,343 1,106,802 334,232 772,570 741,400
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
UNCONSOLIDATED CONDENSED INTERIMSTATEMENT OF EXPENSES (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
30
BUSINESS UNDERWRITTEN OUTSIDE PAKISTAN
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Quarter ended30 June 2011
Quarter ended30 June 2010
(Rupees in thousand)
Class Commissionspaid orpayable
Deferred commission
Opening Closing
Netcommission
expense
Othermanagement
expenses
Underwritingexpense
Net underwriting expenseCommission
fromreinsurer
Direct and facultative
Fire and property damage 2,806 8,851 8,058 3,599 713 4,312 4,044 268 (186)
Marine, aviation and transport 1,088 1,416 915 1,589 1,831 3,420 227 3,193 4,928
Motor 23,204 91,537 74,328 40,413 38,262 78,675 14,313 64,362 49,833
Miscellaneous 673 1,958 1,761 870 799 1,669 566 1,103 10
Total 27,771 103,762 85,062 46,471 41,605 88,076 19,150 68,926 54,585
Treaty
Proportional - - - - - - - - -
Total - - - - - - - - -
Grand Total 27,771 103,762 85,062 46,471 41,605 88,076 19,150 68,926 54,585
Half year ended30 June 2011
Half year ended30 June 2010
(Rupees in thousand)
Class Commissionspaid orpayable
Deferred commission
Opening Closing
Netcommission
expense
Othermanagement
expenses
Underwritingexpense
Net underwriting expenseCommission
fromreinsurer
Direct and facultative
Fire and property damage 6,325 8,925 8,058 7,192 1,228 8,420 7,794 626 (96)
Marine, aviation and transport 2,549 2,658 915 4,292 3,241 7,533 448 7,085 11,920
Motor 65,621 92,814 74,328 84,107 70,763 154,870 30,144 124,726 98,360
Miscellaneous 1,814 1,619 1,761 1,672 1,351 3,023 1,123 1,900 (44)
Total 76,309 106,016 85,062 97,263 76,583 173,846 39,509 134,337 110,140
Treaty
Proportional - - - - - - - - -
Total - - - - - - - - -
Grand Total 76,309 106,016 85,062 97,263 76,583 173,846 39,509 134,337 110,140
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
31
UNCONSOLIDATED CONDENSED INTERIMSTATEMENT OF INVESTMENT INCOME (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Quarter Quarter Half year Half yearended ended ended ended
30 June 30 June 30 June 30 June2011 2010 2011 2010
(Rupees in thousand)
Income from non-trading investments
Available-for-sale
Return on fixed income securities - - - 2,160Return on Term Finance Certificates 5,949 6,121 11,923 12,485Return on Pakistan Investment Bonds 2,500 3,872 6,491 7,474Return on Treasury bills - - 2,845 -
Dividend income
- associated undertakings 105,740 58,159 175,819 132,467 - others 26,535 16,993 131,510 113,012
132,275 75,152 307,329 245,479
140,724 85,145 328,588 267,598
Gain on sale of ‘available-for-sale’ investments
- associated undertakings 7,483 18,587 17,563 58,874- others 76,561 23,372 173,720 26,429
84,044 41,959 191,283 85,303
224,768 127,104 519,871 352,901
(Provision) / Reversal for impairment in value ofavailable-for-sale' investment 19,508 (124,896) (74,266) (129,518)
Net investment income 244,276 2,208 445,605 223,383
The annexed notes form an integral part of this unconsolidated condensed interim financial information.
UNCONSOLIDATED CONDENSED INTERIMNOTES TO THE FINANCIAL INFORMATION (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
32
1. THE COMPANY AND ITS OPERATIONS
Adamjee Insurance Company Limited (the Company) is a public limited company incorporated in Pakistan on28 September 1960 under the Companies Act, 1913 (now the Companies Ordinance, 1984). The Company islisted on all the stock exchanges in Pakistan and is engaged in the non-life insurance business.
The registered office of the Company is situated at Islamabad Stock Exchange Building, Islamabad.
1.1 The Company also operates branches in the United Arab Emirates (UAE), the Kingdom of Saudi Arabia (KSA)and the Export Processing Zone (EPZ). The branch in the KSA has closed down its operations and is in “run-off” status with effect from 01 October 2003. During the period, the Company has opened its new branch officein Abu Dhabi to extend its operations.
2. BASIS OF PREPARATION
a) Statement of Compliance
This unconsolidated condensed interim financial report of the company for the six months period ended 30 June2011 has been prepared in accordance with the requirements of the International Accounting Standard 34 -Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance, 1984, theInsurance Ordinance, 2000 and SEC (Insurance) Rules, 2002. In case where requirements differ, the provisionsof or directives of Companies Ordinance, 1984, the Insurance Ordinance, 2000 and SEC (Insurance) Rules,2002 shall prevail.
The SECP has allowed insurance companies to defer the application of International Accounting Standard -39(IAS - 39) 'Financial Instruments: Recognition and Measurement' in respect of "Investment available -for- sale"until suitable amendments have been made in the law. Accordingly, the requirements of IAS - 39, to the extentallowed by the SECP, have not been considered in the preparation of this unconsolidated interim condensedfinancial information.
b) Basis of Presentation
These unconsolidated condensed interim financial information represents separate unconsolidated condensedinterim financial information of Adamjee Insurance Company Limited, prepared in accordance with the formatprescribed by Insurance Division of SECP in its Circular No. 7 of 2003 dated 27 August 2003. The consolidatedcondensed interim financial information of the group is being issued separately.
3. BASIS OF MEASUREMENT
This unconsolidated condensed interim financial information has been prepared under the historical costconvention except that obligations under certain employee benefits are measured at present value.
4. ACCOUNTING POLICIES AND COMPUTATION METHODS
The accounting policies and the methods of computation adopted in the preparation of this unconsolidatedcondensed interim financial information are the same as those applied in the preparation of the unconsolidatedfinancial statements for the year ended 31 December 2010.
5. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
Judgments and estimates made by the management in the preparation of this unconsolidated condensed interimfinancial information are the same as those applied to the preceding annual published financial statements ofthe Company for the year ended 31 December 2010.
HALF YEARLY REPORTJUNE, 2011
33
UNCONSOLIDATED CONDENSED INTERIMNOTES TO THE FINANCIAL INFORMATION (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
6. CONTINGENCIES AND COMMITMENTS
6.1 Contingencies
The income tax assessments of the Company have been finalized up to and including the tax year 2009. However,the Company has filed appeals in respect of certain assessment years mainly on account of following:
(i) The Deputy Commissioner of Income Tax (DCIT) has finalized assessments for the assessment year1999-2000 by taxing capital gains at the full rate of 33%. The aggregate tax liability assessed by the DCITamounted to Rupees 48.205 million against which the Company has made a total provision of Rupees44.141 million resulting in a shortfall of Rupees 4.064 million. The Company filed appeals with theCommissioner of Income Tax (Appeals) and Income Tax Appellate Tribunal (ITAT) which were decidedagainst the Company. Consequently the Company has filed an appeal before the Honorable High Courtof Sindh and the petition is fixed for regular hearing;
ii) The Additional Commissioner / Taxation Officer has reopened assessments for the assessment years2000-2001 and 2001-2002 by taxing bonus shares received by the Company during the above mentionedperiods resulting in an additional tax liability of Rupees 14.907 million. An appeal was filed before theCommissioner of Income Tax (Appeals) who cancelled the amended order passed by the AdditionalCommissioner and allowed relief to the Company but the Tax Department filed an appeal before the ITATagainst the order of the Additional Commissioner, which has been decided in favor of the Company.However, the Company again received a notice from Additional Commissioner for reassessment of thecase. The Company has filed a constitutional petition in Sindh High Court against such order.
iii) While finalizing the assessment for the assessment year 2002-2003, DCIT has reduced the businessloss for the year by Rupees 88.180 million by adjusting the dividend income against this loss. The Companymaintains that it is entitled to carry the gross loss forward for adjustment against the future taxable incomeand dividend income for the year should be taxed separately at reduced rate. The appeals of the Companyin this respect have been rejected by the Commissioner of Income Tax (Appeals), the ITAT and the SindhHigh Court. The Company has now filed a reference application with the Supreme Court of Pakistan. Themanagement is confident that the matter will eventually be decided in favor of the Company and hasconsequently not made any provision against the additional tax liability of Rupees 26.455 million whichmay arise in this respect.
iv) The Tax Authorities have also amended the assessments for tax years 2003 to 2007 on the ground thatthe Company has not apportioned management and general administration expenses against capitalgain and dividend income. The Company has filed constitution petition in the High Court of Sindh againstthe amendment in the assessment order. The Company may be liable to pay Rupees 5.881 million in theevent of decision against the Company, out of which Rupees 2.727 million has been provided by theCompany resulting in a shortfall of Rupees 3.154 million.
v) The Taxation Officer has passed an order in the tax year 2005 and 2006 under section 221 of the IncomeTax Ordinance, 2001 (the Ordinance) levying minimum tax liability aggregating to Rupees 38.358 million.An appeal had been filed before the Commissioner of Income Tax (Appeals) who upheld the order ofthe Taxation Officer. The Company has filed an appeal before ITAT which is pending to be heard.
vi) The Company received a notice from Additional Commissioner Inland Revenue pertaining to the assessmentof tax year 2008. Among others, the Additional Commissioner raised issues pertaining to avoidance oftax on capital gains on listed securities. However, the Company filed a constitutional petition in SindhHigh Court against such order and the court has granted stay in this regard.
Pending resolution of the above-mentioned appeals filed by the Company, no provision has been made in thisunconsolidated condensed interim financial information for the aggregate amount of Rupees 86.938 million (31December 2010: 88.201 million) as the management is confident that the eventual outcome of the above matterswill be in favor of the Company.
6.2 Commitments
There were no capital or other commitments as at 30 June 2011 (31 December 2010: Nil)
HALF YEARLY REPORTJUNE, 2011
UNCONSOLIDATED CONDENSED INTERIMNOTES TO THE FINANCIAL INFORMATION (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
34 HALF YEARLY REPORTJUNE, 2011
(Unaudited) (Audited)30 June 31 December
2011 2010 –––––––(Rupees in thousand)––––––
7. INVESTMENTS
In related parties
Available-for-sale
Marketable securities 6,293,557 5,724,324 Less: Provision for impairment in value of investments (6,510) -
6,287,047 5,724,324
Investment in Subsidiary - Adamjee Life Assurance Company Limited 294,065 294,065
Investment in Associates
- Lalpir Power Limited 412,796 412,796 - Pakgen Power Limited 355,448 412,796
768,244 825,592
7,349,356 6,843,981
Others
Available-for-sale
Marketable securities 2,728,642 2,973,083 Less: Provision for impairment in value of investments (477,821) (410,066)
2,250,821 2,563,017
Fixed income investments 130,099 -
2,380,920 2,563,017
9,730,276 9,406,998
At 30 June 2011, the fair value of available-for-sale securities was Rupees 11,136.373 million (31 December2010: Rupees 10,003.082 million).
7.1 Reconciliation of provision for impairment in value of investments
Opening provision 410,066 541,300Charge / (reversal) for the period / year 74,265 (128,882)
Provision written off during the period / year - (2,352)
Closing provision 484,331 410,066
8. PREMIUMS DUE BUT UNPAID - Unsecured
Considered good 4,212,127 4,546,222Considered doubtful 307,275 199,015
4,519,402 4,745,237 Less: Provision for doubtful balances (307,275) (199,015)
4,212,127 4,546,222
35
UNCONSOLIDATED CONDENSED INTERIMNOTES TO THE FINANCIAL INFORMATION (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
HALF YEARLY REPORTJUNE, 2011
(Unaudited) (Audited)30 June 31 December
2011 2010 –––––––(Rupees in thousand)––––––
8.1 Reconciliation of provision for doubtful balances
Opening provision 199,015 119,530 Exchange loss - 274Charge for the period / year 110,000 86,867Written off during the period / year - (7,656)Bad debts recovered (1,740) -
Closing provision 307,275 199,015
9. AMOUNTS DUE FROM OTHER INSURERS/ REINSURERS - Unsecured
Considered good 841,334 993,584Considered doubtful 70,000 30,000
911,334 1,023,584Less: Provision for doubtful balances (70,000) (30,000)
841,334 993,584
9.1 Reconciliation of provision for doubtful balance
Opening provision 30,000 30,000Charge for the period / year 40,000 -
Closing provision 70,000 30,000
10. FIXED ASSETS
10.1 The following capital expenditure was incurred during the period / year:
OwnedLand and building 7,529 116,039Furniture and fixtures 8,590 39,914Motor vehicles 30,486 80,004Machinery and equipment 8,477 34,750Computer and related accessories 4,978 21,355
60,060 292,062Intangible asset - computer software 4,467 23,152
LeasedMotor vehicles - -
64,527 315,214
10.2 The following are the written down values of fixed assets disposed of during the period / year:
OwnedBuilding 2,633 618Furniture and fixtures 585 616Motor vehicles 6,228 40,536Machinery and equipment 560 1,555Computer and related accessories 404 123
LeasedMotor vehicles 20,348 22,999
30,758 66,447
UNCONSOLIDATED CONDENSED INTERIMNOTES TO THE FINANCIAL INFORMATION (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
36 HALF YEARLY REPORTJUNE, 2011
(Unaudited) (Unaudited)30 June 30 June
2011 2010 –––––––(Rupees in thousand)––––––
Premium underwritten 481,611 590,509Premium received 528,694 520,358Premium ceded 2,022 541Claims paid 1,119,634 248,939Rent paid 5,408 5,289Dividends received 174,473 132,467Dividend paid 66,157 60,126
Number of shares
Bonus shares received 2,326,338 2,114,852Bonus shares issued - 4,008,442
Following balances are due to / from staff retirement benefit funds:
(Unaudited) (Audited)30 June 31 December
2011 2010 –––––––(Rupees in thousand)––––––
Receivable from Staff Gratuity Fund 43,818 53,818Receivable from Employees Provident Fund 1,467 1,737
11. TRANSACTIONS WITH RELATED PARTIES
The Company has related party relationships with its subsidiary company, associates, employee benefit plans,key management personnel and other parties. Transactions are entered into with such related parties for theissuance of policies to and disbursements of claims incurred by them and payment of rentals for the use ofpremises rented from them. There are no transactions with key management personnel other than their termsof employment.
Investment in related parties have been disclosed in note 7 to this interim financial information. Other transactionswith related parties are summarised as follows:
During the period an amount of Rupees 10.348 million (30 June 2010: 10.048 million) has been charged to profitand loss account in respect of the companies contributions to the Employees Provident Fund.
12. NON-ADJUSTING EVENTS AFTER THE BALANCE SHEET DATE
The Board of Directors of the company in their meeting held on 30 August 2011 proposed an interim cash dividendfor the half year ended 30 June 2011 @ 10 % Re. 1/- per share (2010: @ 10% Re. 1/- per share). This unconsolidatedcondensed interim financial information for the half year ended 30 June 2011 does not include the effect of thisappropriation which will be accounted for in the unconsolidated financial statements for the year ending 31December 2011.
37
UNCONSOLIDATED CONDENSED INTERIMNOTES TO THE FINANCIAL INFORMATION (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
HALF YEARLY REPORTJUNE, 2011
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11
UNCONSOLIDATED CONDENSED INTERIMNOTES TO THE FINANCIAL INFORMATION (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
38 HALF YEARLY REPORTJUNE, 2011
14. AUTHORIZATION FOR ISSUE
This unconsolidated condensed interim financial information has been approved and authorized for issue on30 August 2011 by the Board of Directors of the Company.
15. CORRESPONDING FIGURES
Corresponding figures have been rearranged and reclassified, wherever necessary, for the purpose of comparison.However no significant reclassification has been made during the period.
16. GENERAL
Figures have been rounded off to the nearest thousand of Rupees unless otherwise stated.
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
THE POWEROF ACCURACY
At Adamjee Insurance we don’t make mistakes, we can’t afford to. In a business thatprides itself in numbers, accuracy becomes the name of the game. Each number eachvalue is checked and vetted on multiple levels and that’s what defines our quest forexcellence.
Consolidated CondensedInterim Financial Statements (Unaudited)For the Half Year Ended 30 June 2011
On behalf of the Board, I am pleased to present the consolidated financial statements of Adamjee InsuranceCompany Limited and its subsidiary, Adamjee Life Assurance Company Limited for the half year ended30 June 2011.
The following appropriation of profit has been recommended by Board of Directors:
30 June 30 June2011 2010
(Rupees in thousand)
Profit Before Tax 588,491 406,028
Taxation (114,996) (90,320)
Profit After Tax 473,495 315,708
Profit attributable to minority interest (4,224) (4,592)
Profit attributable to ordinary share holders 469,271 311,116
Unappropriated profit brought forward 8,736,251 8,522,098
Profit available for appropriation 9,205,522 8,833,214
Appropriation
Final Dividend for the year ended 31 December 2010 / 31 December 2009 (185,557) (168,688)
Reserve for issue of bonus shares for the year ended 31 December 2010 / 31 December 2009 - (112,459)
Profit after appropriation 9,019,965 8,552,067
Earnings Per Share
The half year consolidated financial statements reflect Rs. 3.79 (30 June 2010: Rs. 2.51) earning per sharefor the period under review.
On Behalf of Board of Directors
Lahore: 30 August 2011 Manzar MushtaqManaging Director and Chief Executive
DIRECTORS' REPORT TO THE MEMBERS ON CONSOLIDATEDFINANCIAL STATEMENTSFOR THE HALF YEAR ENDED 30 JUNE 2011
40 HALF YEARLY REPORTJUNE, 2011
41
CONSOLIDATED CONDENSEDINTERIM BALANCE SHEET (UNAUDITED)AS AT 30 JUNE 2011
(Unaudited) (Audited)Note 30 June 31 December
2011 2010 –––––––(Rupees in thousand)––––––
Share capital and reservesAuthorized share capital 1,500,000 1,500,000
Paid-up share capital 1,237,045 1,237,045
Retained earnings 9,019,965 8,736,251Reserves 990,038 1,047,106
10,010,003 9,783,357
Equity attributable to equity holders of the parent 11,247,048 11,020,402Non-controlling interest 108,424 152,444
Total equity 11,355,472 11,172,846
Balance of statutory funds 236,308 99,479
Underwriting provisionsProvision for outstanding claims (including IBNR) 7,209,294 7,989,823Provision for unearned premium 4,606,328 5,017,435Commission income unearned 260,339 305,434
Total underwriting provisions 12,075,961 13,312,692
Deferred liabilitiesDeferred taxation 124,707 58,375Staff retirement benefits 24,879 19,585
Creditors and AccrualsPremiums received in advance 133,124 77,174Amounts due to other insurers / reinsurers 1,141,656 1,599,650Accrued expenses 96,187 151,051Other creditors and accruals 1,758,275 1,564,460
3,129,242 3,392,335
BorrowingsLiabilities against assets subject to finance lease 80,316 107,637
Other liabilitiesUnclaimed dividends 34,704 29,121
TOTAL LIABILITIES 15,469,809 16,919,745
CONTINGENCIES AND COMMITMENTS 6
TOTAL EQUITY AND LIABILITIES 27,061,589 28,192,070
The annexed notes form an integral part of this condensed interim consolidated financial information.
HALF YEARLY REPORTJUNE, 2011
42
(Unaudited) (Audited)Note 30 June 31 December
2011 2010 –––––––(Rupees in thousand)––––––
Cash and bank depositsCash and other equivalents 71,244 59,453Current and other accounts 1,056,881 1,098,285Deposits maturing within 12 months 988,977 1,584,827
2,117,102 2,742,565
LoansTo employees 25,282 22,086
Investments 7 10,053,424 9,607,857
Current assets - othersPremiums due but unpaid 8 4,224,836 4,554,824Amounts due from other insurers/ reinsurers 9 857,219 993,584Salvage recoveries accrued 204,910 99,636Premium and claim reserves retained by cedants 23,252 23,252Accrued investment income 26,090 41,389Reinsurance recoveries against outstanding claims 5,732,868 6,253,202Taxation - payments less provision 76,393 45,873Deferred commission expense 515,302 512,222Prepayments 1,794,854 1,835,054Sundry receivables 325,174 316,635
13,780,898 14,675,671
Fixed Assets - Tangible & Intangible 10
OwnedLand and buildings 279,432 281,472Furniture and fixtures 72,534 70,212Motor vehicles 211,288 203,650Capital work-in-progress 10,450 -Machinery and equipment 280,080 318,224Computers and related accessories 55,048 60,455Intangible asset - computer software 63,406 66,435
972,238 1,000,448
LeasedMotor vehicles 112,645 143,443
TOTAL ASSETS 27,061,589 28,192,070
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
43
CONSOLIDATED CONDENSED INTERIMPROFIT AND LOSS ACCOUNT (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Revenue accountNet premium revenue 331,269 200,208 732,505 471,779 - 16,875 170,853 - 1,923,489 1,742,940Net claims (196,542) (112,785) (567,615) (324,754) - (7,855) (22) - (1,209,573) (1,120,832)Expenses (67,650) (43,590) (139,218) (99,407) - (5,128) (37,404) (16) (392,413) (330,599)Net commission (23,828) (35,948) (62,549) (12,429) - (5,099) (106,652) (1) (246,506) (152,794)Net Investment income - statutory fund - - - - - 1,231 5,430 2 6,663 663Add: Policyholder's liabilities at beginning of the year - - - - - 15,642 108,502 59 124,203 -Less: Policyholder's liabilities at end of the year - - - - - (25,113) (197,080) (154) (222,347) (8,658)Capital contribution from shareholder's fund - - - - - 550 56,349 109 57,008 54,150Surplus of policyholder funds 8,897 24 1 8,922 (25,010)
Underwriting result 43,249 7,885 (36,877) 35,189 - - - - 49,446 159,860
Investment income - other 229,219 8,654Rental income 165 164Other income 52,200 33,312
331,030 201,990General and administration expenses (279,854) (141,333)Exchange loss (43) (193)Finance charge on lease liabilities (6,150) (4,875)Share of profit of associated companies 70,361 6,813Profit before tax 115,344 62,402Provision for taxation (38,011) (1,880)
Profit after tax 77,333 60,522
Profit attributable to:Equity holders of the parent 74,831 55,930
Non-controlling interest 2,502 4,592
Rupees Rupees
Earnings per share - basic and diluted 0.60 0.45
Revenue accountNet premium revenue 648,991 510,914 1,525,335 1,035,335 - 36,397 234,564 8 3,991,544 3,471,440Net claims (432,424) (233,038) (1,109,041) (739,627) - (15,995) (410) - (2,530,535) (2,192,412)Expenses (115,868) (90,453) (249,556) (185,049) - (16,377) (60,963) (46) (718,312) (666,992)Net commission (50,238) (85,000) (131,210) 467 - (12,312) (148,519) (4) (426,816) (272,917)Net Investment income - statutory fund - - - - - 3,400 9,873 4 13,277 952Add: Policyholder's liabilities at beginning of the year - - - - - 20,034 79,386 59 99,479 11,499Less: Policyholder's liabilities at end of the year - - - - - (25,113) (197,080) (154) (222,347) (20,157)Capital contribution from shareholder's fund - - - - - 23,927 83,149 133 107,209 85,869Surplus of policyholder funds - - - - - (13,961) - - (13,961) (25,010)
Underwriting result 50,461 102,423 35,528 111,126 - - - - 299,538 392,272
Investment income - other 435,945 241,811Rental income 330 718Other income 87,579 71,221
823,392 706,022General and administration expenses (399,154) (296,791)Exchange gain 251 207Finance charge on lease liabilities (9,872) (10,223)Share of profit of associated companies 173,874 6,813Profit before tax 588,491 406,028Provision for taxation (114,996) (90,320)
Profit after tax 473,495 315,708
Profit attributable to:Equity holders of the parent 469,271 311,116
Non-controlling interest 4,224 4,592
Profit and loss appropriation accountBalance at the commencement of the year 8,736,251 8,522,098Profit after tax for the period 469,271 311,116Final dividend for the year ended 31 December 2010 @15% (Rs.1.5/- per share) [2009:@15%(Rs. 1.5/- per share) (185,557) (168,688)Reserve for issue of bonus shares - (112,459)
Balance unappropriated profit at the end of the period 9,019,965 8,552,067
Rupees Rupees
Earnings per share - basic and diluted 3.79 2.51The annexed notes form an integral part of this condensed interim consolidated financial information.
General Insurance
Fire andPropertyDamage
Marine,Aviation
andTransport
Motor Miscellaneous Treaty
Life Insurance
ConventionalBusiness
Non-unitizedInvestment
LinkedBusiness
Total
Quarterended
30 June2011
Quarterended
30 June2010
(Rupees in thousand)
Accident andHealth
Business
General Insurance
Fire andPropertyDamage
Marine,Aviation
andTransport
Motor Miscellaneous Treaty
Life Insurance
ConventionalBusiness
Non-unitizedInvestment
LinkedBusiness
Total
Half yearended
30 June2011
Half yearended
30 June2010
(Rupees in thousand)
Accident andHealth
Business
CONSOLIDATED CONDENSED INTERIMSTATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
44 HALF YEARLY REPORTJUNE, 2011
(Unaudited) (Unaudited) (Unaudited) (Unaudited)Half year Half year Quarter Quarter
ended ended ended ended30 June 30 June 30 June 30 June
2011 2010 2011 2010
(Rupees in thousand)
Profit for the period 473,495 315,708 77,333 60,522
Other comprehensive income:
Effect of translation of net investment inforeign branches 1,897 22,057 (9,467) 4,452
Capital contribution to statutory funds (107,209) (85,869) (57,008) (54,150)
Total comprehensive income for the period 368,183 251,896 10,858 10,824
Comprehensive income attributeable to:
Equity holders of the parent 412,203 285,945 35,386 30,600
Non-controlling interest (44,020) (34,049) (24,528) (19,776)
368,183 251,896 10,858 10,824
The annexed notes form an integral part of this condensed interim consolidated financial information.
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
45
CONSOLIDATED CONDENSED INTERIMSTATEMENT OF CHANGES IN EQUITY (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Share Capital Capital Reserves Revenue Reserves
Equityattributable
to equityholders ofthe parent
Non-Controlling
interest
TotalEquity
Issued,subscribedand paid-up
Reserve forissue ofbonusshares
Reserve forexceptional
losses
Investmentfluctuation
reserve
Capitalcontributionto statutory
funds
Exchangetranslation
reserve
Generalreserve
Retainedearnings
(Rupees in thousand)
Balance as at 31 December 2009 1,124,586 - 22,859 3,764 (31,840) 173,424 936,500 8,522,098 10,751,391 216,230 10,967,621
Total comprehensive income for the
half year ended 30 June 2010 - - - - (47,228) 22,057 - 311,116 285,945 (34,049) 251,896
Final dividend for the year ended
31 December 2009 @ 15 %
(Rupees 1.5/- per share) - - - - - - - (168,688) (168,688) - (168,688)
Transferred to reserve for issue of
bonus shares - 112,459 - - - - - (112,459) - - -
Issue of bonus shares for the year ended
31 December 2009@ 10 % 112,459 (112,459) - - - - - - - - -
Balance as at 30 June 2010 1,237,045 - 22,859 3,764 (79,068) 195,481 936,500 8,552,067 10,868,648 182,181 11,050,829
Balance as at 31 December 2010 1,237,045 - 22,859 3,764 (116,742) 200,725 936,500 8,736,251 11,020,402 152,444 11,172,846
Total comprehensive income for the
half year ended 30 June 2011 - - - - (58,965) 1,897 - 469,271 412,203 (44,020) 368,183
Final dividend for the year ended
31 December 2010 @ 15%
(Rupees 1.5/- per share) - - - - - - - (185,557) (185,557) - (185,557)
Balance as at 30 June 2011 1,237,045 - 22,859 3,764 (175,707) 202,622 936,500 9,019,965 11,247,048 108,424 11,355,472
The annexed notes form an integral part of this condensed interim consolidated financial information.
46
Half year ended Half year ended30 June 2011 30 June 2010
–––––––(Rupees in thousand)––––––
Operating Cash Flows
a) Underwriting activitiesPremiums received 6,234,349 6,007,936Reinsurance premiums paid (2,616,724) (2,192,428)Claims paid (5,101,202) (3,217,599)Surrenders paid (28,886) (59,718)Reinsurance and other recoveries received 2,304,426 711,008Commissions paid (706,465) (585,690)Commissions received 328,646 370,086Other underwriting payments (569,996) (392,818)
Net cash (used in) / flow from underwriting activities (155,852) 640,777
b) Other operating activitiesIncome tax paid (79,187) (83,670)General and other expenses paid (489,792) (325,430)Loans advanced (51,646) (13,086)Loan repayments received 28,022 19,894Other receipts 105,834 4,168
Net cash used in other operating activities (486,769) (398,124)
Total cash flow (used in) / flow from all operating activities (642,621) 242,653
Investment activitiesProfit/ return received 91,524 33,087Return on Pakistan Investment Bonds 7,596 7,113Income received on TFCs 10,390 13,214Dividends received 312,071 262,210Income received on rent 330 3,085Payments for investments (2,730,881) (3,601,241)Proceeds from disposal of investments 2,567,044 4,019,236Fixed capital expenditure - Tangible assets (70,655) (79,808)Fixed capital expenditure - Intangible assets (4,467) (533)Proceeds from disposal of fixed assets 51,375 21,024
Total cash flow from investing activities 234,327 677,387
Financing activitiesDividends paid (179,975) (166,143)Payments on finance lease (37,194) (22,578)
Total cash used in financing activities (217,169) (188,721)
Net cash (used in) / inflow from all activities (625,463) 731,319Cash at the beginning of the period 2,737,741 2,168,707
Cash at the end of the period 2,112,278 2,900,026
HALF YEARLY REPORTJUNE, 2011
CONSOLIDATED CONDENSED INTERIMSTATEMENT OF CASH FLOWS (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
47
CONSOLIDATED CONDENSED INTERIMSTATEMENT OF CASH FLOWS (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
Half year ended Half year ended30 June 2011 30 June 2010
–––––––(Rupees in thousand)––––––
Reconciliation to Profit and Loss Account
Operating cash flows (642,621) 242,652Depreciation expense (96,060) (90,644)Provision for gratuity (4,008) (3,245)Other income - bank deposits 64,853 65,494Profit on disposal of fixed assets 20,264 1,43Finance charge on lease rentals (9,872) (10,223)Share of profit of associated companies 173,874 6,813Rental income 330 718(Decrease) / Increase in assets other than cash (884,302) 990,433Decrease / (Increase) in liabilities other than running finance 946,241 (612,007)
(431,301) 591,429
Others
Profit on sale of investments 191,283 30,798Amortization expense (10,965) (5,757)Capital contribution from shareholders' fund 107,209 85,869Decrease / (Increase) in unearned premium 411,107 (574,449)Amortization of income on Government Securities - net - 2,160Gain on sale of mutual fund units 12,865 58,873Return on Pakistan Investment Bonds 21,125 7,474Decrease in loans (14,471) (6,808)Income tax paid 79,187 73,246(Provision) / reversal for diminution in value of investments (72,687) (129,653)Dividend, investment and other income 280,371 260,361Income on Treasury Bills 2,845 -Other income - TFCs 11,923 12,485
1,019,792 (185,401)
Profit before taxation 588,491 406,028
Definition of cash:
Cash comprises of cash in hand, bank balances excluding Rs.4.824 million (2010: Rs 4.451 million) held under lienand other deposits which are readily convertible to cash and which are used in the cash management function on aday- to-day basis.
Half year ended Half year ended30 June 2011 30 June 2010
–––––––(Rupees in thousand)––––––
Cash for the purposes of the Statement of Cash Flows consists of:
Cash and other equivalent 71,244 1,157
Current and other accounts 1,056,881 1,373,807
Deposits maturing within 12 months 984,153 1,525,062
Total cash and cash equivalents 2,112,278 2,900,026
The annexed notes form an integral part of this condensed interim consolidated financial information.
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
CONSOLIDATED CONDENSED INTERIMSTATEMENT OF PREMIUMS (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
48 HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Class Premiumswritten
Unearned premiumreserve
Opening Closing
Premiumsearned
Reinsuranceceded
Reinsuranceexpense
Prepaid reinsurancepremium ceded
Net premiumrevenue
Half year ended30 June 2011
Half year ended30 June 2010
(Rupees in thousand)
Opening Closing
General insurance:
Direct and facultative
Fire and property damage 1,997,785 1,977,580 1,794,848 2,180,517 1,374,993 1,371,210 1,214,677 1,531,526 648,991 580,770
Marine, aviation and transport 723,825 57,988 93,785 688,028 184,599 12,199 19,684 177,114 510,914 490,786
Motor 1,640,293 1,760,996 1,682,633 1,718,656 176,877 175,330 158,886 193,321 1,525,335 1,693,453
Miscellaneous 1,231,782 1,220,871 1,035,062 1,417,591 426,828 215,786 260,358 382,256 1,035,335 666,077
5,593,685 5,017,435 4,606,328 6,004,792 2,163,297 1,774,525 1,653,605 2,284,217 3,720,575 3,431,086
Treaty
Proportional - - - - - - - - - -
- - - - - - - - - -
Total 5,593,685 5,017,435 4,606,328 6,004,792 2,163,297 1,774,525 1,653,605 2,284,217 3,720,575 3,431,086
Life insurance:
Conventional Business 51,428 - - 51,428 15,031 - - 15,031 36,397 16,318
Non-unitized Investment Linked Business 241,611 - - 241,611 7,047 - - 7,047 234,564 23,849
Accident and Health Business 10 - - 10 2 - - 2 8 187
Total 293,049 - - 293,049 22,080 - - 22,080 270,969 40,354
Grand Total 5,886,734 5,017,435 4,606,328 6,297,841 2,185,377 1,774,525 1,653,605 2,306,297 3,991,544 3,471,440
The annexed notes form an integral part of this condensed interim consolidated financial information.
Class Premiumswritten
Unearned premiumreserve
Opening Closing
Premiumsearned
Reinsuranceceded
Reinsuranceexpense
Prepaid reinsurancepremium ceded
Net premiumrevenue
Quarter ended30 June 2011
Quarter ended30 June 2010
(Rupees in thousand)
Opening Closing
General insurance:
Direct and facultative
Fire and property damage 1,081,995 1,815,920 1,794,848 1,103,067 826,916 1,159,559 1,214,677 771,798 331,269 220,995
Marine, aviation and transport 353,498 79,373 93,785 339,086 134,726 23,836 19,684 138,878 200,208 260,044
Motor 824,337 1,683,521 1,682,633 825,225 83,267 168,339 158,886 92,720 732,505 835,313
Miscellaneous 588,226 1,095,724 1,035,062 648,888 235,298 202,169 260,358 177,109 471,779 392,542
2,848,056 4,674,538 4,606,328 2,916,266 1,280,207 1,553,903 1,653,605 1,180,505 1,735,761 1,708,894
Treaty
Proportional - - - - - - - - - -
- - - - - - - - - -
Total 2,848,056 4,674,538 4,606,328 2,916,266 1,280,207 1,553,903 1,653,605 1,180,505 1,735,761 1,708,894
Life insurance:
Conventional Business 23,664 - - 23,664 6,789 - - 6,789 16,875 10,092
Non-unitized Investment Linked Business 176,878 - - 176,878 6,025 - - 6,025 170,853 23,849
Accident and Health Business - - - - - - - - - 105
Total 200,542 - - 200,542 12,814 - - 12,814 187,728 34,046
Grand Total 3,048,598 4,674,538 4,606,328 3,116,808 1,293,021 1,553,903 1,653,605 1,193,319 1,923,489 1,742,940
49
CONSOLIDATED CONDENSED INTERIMSTATEMENT OF CLAIMS (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Quarter ended30 June 2011
Quarter ended30 June 2010
(Rupees in thousand)
Class Total claimspaid
Outstanding claims
Opening Closing
Claimsexpenses
Reinsuranceand otherrecoveriesreceived
Reinsuranceand otherrecoveriesrevenue
Reinsurance and otherrecoveries in respect of
outstanding claims
Net claims expense
Opening Closing
General insurance:
Direct and facultative
Fire and property damage 718,882 3,916,347 4,736,133 1,538,668 341,821 3,285,485 4,285,790 1,342,126 196,542 170,295
Marine, aviation and transport 125,878 392,935 409,960 142,903 1,117 165,932 194,933 30,118 112,785 124,562
Motor 673,805 1,533,231 1,626,923 767,497 115,067 1,092,515 1,177,330 199,882 567,615 574,882
Miscellaneous 1,007,968 978,884 400,015 429,099 521,583 696,963 279,725 104,345 324,754 250,320
2,526,533 6,821,397 7,173,031 2,878,167 979,588 5,240,895 5,937,778 1,676,471 1,201,696 1,120,059
Treaty
Proportional - 20,332 20,332 - - - - - - 460
- 20,332 20,332 - - - - - - 460
Total 2,526,533 6,841,729 7,193,363 2,878,167 979,588 5,240,895 5,937,778 1,676,471 1,201,696 1,120,519
Life insurance:
Conventional Business 21,563 12,522 14,545 23,586 15,731 - - 15,731 7,855 313
Non-unitized Investment Linked Business - 1,312 1,386 74 52 - - 52 22 -
Accident and Health Business - - - - - - - - - -
Total 21,563 13,834 15,931 23,660 15,783 - - 15,783 7,877 313
Grand Total 2,548,096 6,855,563 7,209,294 2,901,827 995,371 5,240,895 5,937,778 1,692,254 1,209,573 1,120,832
Half year ended30 June 2011
Half year ended30 June 2010
(Rupees in thousand)
Class Total claimspaid
Outstanding claims
Opening Closing
Claimsexpenses
Reinsuranceand otherrecoveriesreceived
Reinsuranceand otherrecoveriesrevenue
Reinsurance and otherrecoveries in respect of
outstanding claims
Net claims expense
Opening Closing
General insurance:
Direct and facultative
Fire and property damage 1,952,057 4,893,957 4,736,133 1,794,233 1,410,759 4,334,740 4,285,790 1,361,809 432,424 373,109
Marine, aviation and transport 279,121 426,065 409,960 263,016 1,117 166,072 194,933 29,978 233,038 222,673
Motor 1,394,815 1,540,738 1,626,923 1,481,000 189,782 995,153 1,177,330 371,959 1,109,041 1,131,605
Miscellaneous 1,420,638 1,099,317 400,015 721,336 558,857 856,873 279,725 (18,291) 739,627 459,427
5,046,631 7,960,077 7,173,031 4,259,585 2,160,515 6,352,838 5,937,778 1,745,455 2,514,130 2,186,814
Treaty
Proportional - 20,332 20,332 - - - - - - 460
- 20,332 20,332 - - - - - - 460
Total 5,046,631 7,980,409 7,193,363 4,259,585 2,160,515 6,352,838 5,937,778 1,745,455 2,514,130 2,187,274
Life insurance:
Conventional Business 42,763 9,395 14,545 47,913 31,918 - - 31,918 15,995 5,138
Non-unitized Investment Linked Business - 19 1,386 1,367 957 - - 957 410 -
Accident and Health Business - - - - - - - - - -
Total 42,763 9,414 15,931 49,280 32,875 - - 32,875 16,405 5,138
Grand Total 5,089,394 7,989,823 7,209,294 4,308,865 2,193,390 6,352,838 5,937,778 1,778,330 2,530,535 2,192,412
The annexed notes form an integral part of this condensed interim consolidated financial information.
CONSOLIDATED CONDENSED INTERIMSTATEMENT OF EXPENSES (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
50 HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Quarter ended30 June 2011
Quarter ended30 June 2010
(Rupees in thousand)
Class Commissionspaid orpayable
Deferred commission
Opening Closing
Netcommission
expense
Othermanagement
expenses
Underwritingexpense
Net underwriting expenseCommission
fromreinsurer
General insurance:
Direct and facultative
Fire and property damage 177,568 259,742 290,411 146,899 67,650 214,549 123,071 91,478 75,728
Marine, aviation and transport 56,137 5,818 15,894 46,061 43,590 89,651 10,113 79,538 97,786
Motor 66,658 165,529 154,965 77,222 139,218 216,440 14,673 201,767 190,300
Miscellaneous 38,387 59,826 54,032 44,181 99,407 143,588 31,752 111,836 64,701
338,750 490,915 515,302 314,363 349,865 664,228 179,609 484,619 428,515
Treaty
Proportional - - - - - - - - -
- - - - - - - - -
Total 338,750 490,915 515,302 314,363 349,865 664,228 179,609 484,619 428,515
Life insurance:
Conventional Business 5,099 - - 5,099 5,128 10,227 - 10,227 33,011
Non-unitized Investment Linked Business 107,892 - - 107,892 37,404 145,296 1,240 144,056 21,704
Accident and health business 1 - - 1 16 17 - 17 163
Total 112,992 - - 112,992 42,548 155,540 1,240 154,300 54,878
Grand Total 451,742 490,915 515,302 427,355 392,413 819,768 180,849 638,919 483,393
Half year ended30 June 2011
Half year ended30 June 2010
(Rupees in thousand)
Class Commissionspaid orpayable
Deferred commission
Opening Closing
Netcommission
expense
Othermanagement
expenses
Underwritingexpense
Net underwriting expenseCommission
fromreinsurer
General insurance:
Direct and facultative
Fire and property damage 322,887 259,844 290,411 292,320 115,868 408,188 242,082 166,106 171,010
Marine, aviation and transport 100,520 11,662 15,894 96,288 90,453 186,741 11,288 175,453 178,606
Motor 154,858 162,226 154,965 162,119 249,556 411,675 30,909 380,766 389,426
Miscellaneous 64,537 78,490 54,032 88,995 185,049 274,044 89,462 184,582 112,498
642,802 512,222 515,302 639,722 640,926 1,280,648 373,741 906,907 851,540
Treaty
Proportional - - - - - - - - -
- - - - - - - - -
Total 642,802 512,222 515,302 639,722 640,926 1,280,648 373,741 906,907 851,540
Life insurance:
Conventional Business 12,312 - - 12,312 16,377 28,689 - 28,689 64,853
Non-unitized Investment Linked Business 149,848 - - 149,848 60,963 210,811 1,329 209,482 21,704
Accident and health business 4 - - 4 46 50 - 50 1,812
Total 162,164 - - 162,164 77,386 239,550 1,329 238,221 88,369
Grand Total 804,966 512,222 515,302 801,886 718,312 1,520,198 375,070 1,145,128 939,909
The annexed notes form an integral part of this condensed interim consolidated financial information.
51
CONSOLIDATED CONDENSED INTERIMSTATEMENT OF INVESTMENT INCOME (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
HALF YEARLY REPORTJUNE, 2011
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
Half year ended Half year ended Quarter ended Quarter ended30 June 2011 30 June 2010 30 June 2011 30 June 2010
(Rupees in thousand)General insurance:Income from non-trading investmentsAvailable-for-sale
Return on fixed income securities - 2,160 - -Return on Term Finance Certificates 11,923 12,485 5,949 6,121Return on Pakistan Investment Bonds 6,491 7,474 2,500 3,872Return on Treasury bills 2,845 - 2,845 -Dividend income - associated undertakings 148,194 132,467 78,115 (37,860) - others 131,510 113,012 26,535 113,012
279,704 245,479 104,650 75,152 300,963 267,598 115,944 85,145
Gain on sale of ‘available-for-sale’ investments - associated undertakings 17,563 58,874 7,483 18,587 - others 173,720 26,429 76,561 23,372
191,283 85,303 84,044 41,959 492,246 352,901 199,988 127,104
(Provision) / Reversal for impairment in value of'available-for-sale' investment (74,266) (129,518) 19,508 (124,896)
417,980 223,383 219,496 2,208Life insurance:Share holders' fundUnrealized appreciation / (diminution) in value
of quoted securities 8 (135) 23 -Return on government securities 7,831 13,574 3,935 5,734Return on bank deposit 242 453 100 301Dividend income 667 518 488 80Gain on sale of non trading investments 8,704 4,018 5,032 331Reversal of impairment in the value of
available for sale investments 513 - 145 - 17,965 18,428 9,723 6,446
Statutory FundsConventional BusinessReturn on government securities 2,026 265 766 265Investment income on bank deposits 262 319 180 213Gain on sale of units of open end mutual funds 1,007 350 232 167Loss on sale of government securities (2) - - -Reversal for impairment in value of
'available-for-sale' investment 107 - 53 - 3,400 934 1,231 645
Non-unitized Investment Linked BusinessUnrealized mark to market gain on held for
trading government securities 834 - 204 -Unrealized mark to market gain on held for
trading mutual funds 118 - 64 -Return on government securities 4,777 - 2,374 -Investment income on bank deposits 989 16 730 16Gain on sale of units of open end mutual funds 43 - 43 -Gain on sale of government securities 3,112 - 2,015 -
9,873 16 5,430 16Accident and Health BusinessReturn on government securities - - - -Investment income on bank deposits 4 2 2 2Gain on sale of units of open end mutual funds - - - -
4 2 2 2
Net investment income 449,222 242,763 235,882 9,317
Net investment income - statutory fund 13,277 952 6,663 663Net investment income - other 435,945 241,811 229,219 8,654
449,222 242,763 235,882 9,317
The annexed notes form an integral part of this condensed interim consolidated financial information.
CONSOLIDATED CONDENSED INTERIMNOTES TO THE FINANCIAL INFORMATION (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
52
1. THE GROUP AND ITS OPERATIONS
The group consists of:
Holding companyAdamjee Insurance Company Limited
Subsidiary company Percentage holding of Adamjee Insurance Company LimitedAdamjee Life Assurance Company Limited 55%
Adamjee Insurance Company Limited (holding company)
Adamjee Insurance Company Limited (holding company) is a public limited company incorporated in Pakistanon 28 September 1960 under the Companies Act, 1913 (now the Companies Ordinance, 1984). The Companyis listed on all the stock exchanges in Pakistan and is engaged in the non-life insurance business.
The registered office of the Company is situated at Islamabad Stock Exchange Building, Islamabad.
The Company also operates branches in the United Arab Emirates (UAE), the Kingdom of Saudi Arabia (KSA)and the Export Processing Zone (EPZ). The branch in the KSA has closed down its operations and is in“run-off” status with effect from 01 October 2003.
Adamjee Life Assurance Company Limited (subsidiary company)
Adamjee Life Assurance Company Limited (subsidiary company) was incorporated in Pakistan on 4 August 2008as a public unlisted company under the Companies Ordinance, 1984 and started its operations from 24 April2009. The registered office of the Company is located at MCB Building, Jinnah Avenue, Blue Area, Islamabadwhile 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 55% and 45% respectively in the share capital of the Company. IVM Intersurer B.V. hasnominated Hollard Life Assurance Company Limited (HLA), a subsidiary of IVM Intersurer B.V., to act on itsbehalf. 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 accordancewith the requirements of the Insurance Ordinance, 2000, the Company has established a shareholders' fundand the following statutory funds in respect of its each class of life assurance business:
- Conventional Business - Accident and Health - Non-unitized Investment Linked Business
2. BASIS OF PREPARATION
a) Statement of Compliance
This consolidated condensed interim financial report of the company for the six months period ended 30 June2011 has been prepared in accordance with the requirements of the International Accounting Standard 34 - InterimFinancial Reporting and provisions of and directives issued under the Companies Ordinance, 1984, the InsuranceOrdinance, 2000 and SEC (Insurance) Rules, 2002. In case where requirements differ, the provisions or directivesof Companies Ordinance, 1984, Insurance Ordinance, 2000 and SEC (Insurance) Rules, 2002 shall prevail.
The SECP has allowed insurance companies to defer the application of International Accounting Standard - 39(IAS - 39) 'Financial Instruments: Recognition and Measurement' in respect of "Investment available-for-sale"untill suitable amendments have been made in the law. Accordingly, the requirements of IAS - 39, to the extentallowed by SECP, have not been considered in the preparation of this consolidated condensed financial information.
b) Basis of presentation
This consolidated condensed interim financial information comprises the consolidated financial information ofAdamjee Insurance Company Limited and its subsidiary company, Adamjee Life Assurance Company Limited,as at 30 June 2011. The condensed interim financial information of the subsidiary companies has been consolidatedon line by line basis. All inter company balances and transaction have been eliminated.
HALF YEARLY REPORTJUNE, 2011
53
CONSOLIDATED CONDENSED INTERIMNOTES TO THE FINANCIAL INFORMATION (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
HALF YEARLY REPORTJUNE, 2011
3. BASIS OF MEASUREMENT
This consolidated condensed interim financial information has been prepared under the historical cost conventionexcept that obligations under certain employee benefits are measured at present value.
4. ACCOUNTING POLICIES AND COMPUTATION METHODS
The accounting policies and the methods of computation adopted in the preparation of this consolidated condensedinterim financial information are the same as those applied in the preparation of the consolidated financialstatements for the year ended 31 December 2010.
5. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
Judgments and estimates made by the management in the preparation of this consolidated condensed interimfinancial information are the same as those applied to the preceding annual published financial statements ofthe Company for the year ended 31 December 2010.
6. CONTINGENCIES AND COMMITMENTS
6.1 Contingencies
The income tax assessments of the holding company have been finalized up to and including the tax year2009. However, the holding company has filed appeals in respect of certain assessment years mainly on accountof following:
i) The Deputy Commissioner of Income Tax (DCIT) has finalized assessments for the assessment year 1999-2000by taxing capital gains at the full rate of 33%. The aggregate tax liability assessed by the DCIT amounted toRupees 48.205 million against which the holding company has made a total provision of Rupees 44.141 millionresulting in a shortfall of Rupees 4.064 million. The holding company filed appeals with the Commissioner ofIncome Tax (Appeals) and Income Tax Appellate Tribunal (ITAT) which were decided against the holding company.Consequently the holding company has filed an appeal before the Honorable High Court of Sindh and the petitionis fixed for regular hearing;
ii) The Additional Commissioner / Taxation Officer has reopened assessments for the assessment years 2000-2001and 2001-2002 by taxing bonus shares received by the holding company during the above mentioned periodsresulting in an additional tax liability of Rupees 14.907 million. An appeal was filed before the Commissioner ofIncome Tax (Appeals) who cancelled the amended order passed by the Additional Commissioner and allowedrelief to the holding company but the Tax Department filed an appeal before the ITAT against the order of theAdditional Commissioner, which has been decided in favour of the holding company. However, the holdingcompany again received a notice from Additional Commissioner for reassessment of the case.The holdingcompany has filed a constitutional petion in Sindh High Court against such order.
iii) While finalizing the assessment for the assessment year 2002-2003, DCIT has reduced the business loss forthe year by Rupees 88.180 million by adjusting the dividend income against this loss. The holding companymaintains that it is entitled to carry the gross loss forward for adjustment against the future taxable income anddividend income for the year should be taxed separately at reduced rate. The appeals of the holding companyin this respect have been rejected by the Commissioner of Income Tax (Appeals), the ITAT and the Sindh HighCourt. The holding company has now filed a reference application with the Supreme Court of Pakistan. Themanagement is confident that the matter will eventually be decided in favor of the holding company and hasconsequently not made any provision against the additional tax liability of Rupees 26.455 million which may arisein this respect.
iv) The Tax Authorities have also amended the assessments for tax years 2003 to 2007 on the ground that theholding company has not apportioned management and general administration expenses against capital gainand dividend income. The holding company has filed constitution petition in the High Court of Sindh against theamendment in the assessment order. The holding company may be liable to pay Rupees 5.881 million in theevent of decision against the holding company, out of which Rupees 2.727 million has been provided by theholding company resulting in a shortfall of Rupees 3.154 million.
CONSOLIDATED CONDENSED INTERIMNOTES TO THE FINANCIAL INFORMATION (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
54 HALF YEARLY REPORTJUNE, 2011
v) The Taxation Officer has passed an order in the tax year 2005 and 2006 under section 221 of the Income TaxOrdinance, 2001 (the Ordinance) levying minimum tax liability aggregating to Rupees 38.358 million. An appealhad been filed before the Commissioner of Income Tax (Appeals) who upheld the order of the Taxation Officer.The holding company has filed an appeal before ITAT which is pending to be heard.
vi) The holding company received a notice from Additional Commissioner Inland Revenue pertaining to the assessmentof tax year 2008. Among others, the Additional Commissioner raised issues pertaining to avoidance of tax oncapital gains on listed securities. However, the holding company filed a constitutional petition in Sindh High Courtagainst such order and the court has granted stay in this regard.
Pending resolution of the above-mentioned appeals filed by the holding company, no provision has been madein this consolidated condensed interim financial information for the aggregate amount of Rupees 86.938 million(31 December 2010: 88.201 million) as the management is confident that the eventual outcome of the abovematters will be in favor of the holding company.
6.2 Commitments
Holding company
There were no capital or other commitments as at 30 June 2011 (31 December 2010: Nil)
Subsidiary company
Commitments in respect of leased assets - not later than one year is Rupees 0.228 million (31 December 2010:2.996 million) and intangible assets not later than one year is Rupees 2.550 million (31 December 2010: 2.550million).
(Unaudited) (Audited)30 June 31 December
2011 2010 –––––––(Rupees in thousand)––––––
7. INVESTMENTS
Available-for-sale
In related parties Marketable securities 7,302,347 6,699,828 Less: Provision for impairment in value of investments (6,510) -
7,295,837 6,699,828
Others Marketable securities 2,969,653 3,264,744 Less: Provision for impairment in value of investments (480,068) (412,931)
2,489,585 2,851,813 Fixed income investments 130,099 -
2,619,684 2,851,813
At fair value through profit or loss Listed equity securities 4,377 853 Government securities 133,526 55,363
137,903 56,216
10,053,424 9,607,857
8. PREMIUMS DUE BUT UNPAID - Unsecured
Considered good 4,224,836 4,554,824Considered doubtful 307,275 199,015
4,532,111 4,753,839Less: Provision for doubtful balances 8.1 (307,275) (199,015)
4,224,836 4,554,824
(Unaudited) (Audited)Note 30 June 31 December
2011 2010 –––––––(Rupees in thousand)––––––
8.1 Reconciliation of provision for doubtful balances
Opening provision 199,015 119,530Exchange loss - 274Charge for the period 110,000 86,867Written off during the period - (7,656)Bad debts recovered (1,740) -
Closing provision 307,275 199,015
9. AMOUNTS DUE FROM OTHER INSURERS/ REINSURERS - Unsecured
Considered good 857,219 993,584Considered doubtful 70,000 30,000
927,219 1,023,584Less: Provision for doubtful balances 9.1 (70,000) (30,000)
857,219 993,584
9.1 Reconciliation of provision for doubtful balances
Opening provision 30,000 30,000Charge for the period 40,000 -
Closing provision 70,000 30,000
55
CONSOLIDATED CONDENSED INTERIMNOTES TO THE FINANCIAL INFORMATION (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
HALF YEARLY REPORTJUNE, 2011
10 FIXED ASSETS
10.1 The following capital expenditure was incurred during the period:
Building 7,529 116,039Furniture and fixtures 8,590 40,014Motor vehicles 30,486 80,085Machinery and equipment 8,477 34,917Computer and related accessories 4,978 28,773
Intangible assets 4,467 45,602
64,527 345,430
LeasedMotor vehicles - -
64,527 345,430
10.2 The following are the written down values of fixed assetsdisposed off during the period:
Building 2,633 618Furniture and fixtures 585 616Motor vehicles 6,228 41,553Machinery and equipment 913 1,555Computer and related accessories 404 695
10,763 45,037
LeasedMotor vehicles 20,348 22,999
31,111 68,036
CONSOLIDATED CONDENSED INTERIMNOTES TO THE FINANCIAL INFORMATION (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
56 HALF YEARLY REPORTJUNE, 2011
(Unaudited) (Unaudited)30 June 30 June
2011 2010 –––––––(Rupees in thousand)––––––
11. TRANSACTIONS WITH RELATED PARTIESSubsidiary companyAssociated undertakingsPremium written 16,059 -Claims expense 25,767 15,504Commission expense in respect of Bancassurance 146,668 22,039Profit on bank deposits 817 438Travelling expenses - -Investment advisor fee 71 -Custodian fee 97 -Technical support fee 6,453 7,184Travelling expenses of directors - -Bank charges 11 -Investment purchased 5,355 198,910Investment sold 62,000 92,000Holding CompanyPremium underwritten 481,611 590,509Premium received 528,694 520,358Premium ceded 2,022 541Claims paid 1,119,634 248,939Rent paid 5,408 5,289Dividend received 174,473 132,467Dividend paid 66,157 60,126
Number of shares
Bonus shares received 2,326,338 2,114,852Bonus shares issued - 4,008,442
(Unaudited) (Audited)30 June 31 December
2011 2010 –––––––(Rupees in thousand)––––––
Balances outstanding as at 30 June 2011Subsidiary companyAssociated undertakingsPremium due but unpaid 5,676 308Bank deposits 99,855 24,664Investments held - 56,766Technical support fee payable 6,453 9,787Travelling expenses of directors - -Commission payable 60,934 15,202Claims payable 5,638 543Holding CompanyReceivable from staff gratuity fund 43,818 53,818Receivable from Employee Provident Fund 1,467 1,737
During the period an amount of Rupees 10.348 million (30 June 2010: 10.048 million) has been charged to profitand loss account in respect of the holding company's contributions to the Employees Provident Fund.
12. NON-ADJUSTING EVENTS AFTER THE BALANCE SHEET DATE
The Board of Directors of the holding company in their meeting held on 30 August 2011 proposed an interimcash dividend for the half year ended 30 June 2011 @ 10% Re. 1/- per share (2010: @ 10% Re. 1/- per share).This consolidated condensed interim financial information for the half year ended 30 June 2011 does not includethe effect of this appropriation which will be accounted for in the consolidated financial statements for the yearending 31 December 2011.
57
CONSOLIDATED CONDENSED INTERIMNOTES TO THE FINANCIAL INFORMATION (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
HALF YEARLY REPORTJUNE, 2011
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9,79
8 3
,011
,519
16,
681,
317
83,
220
645
119
,235
238
,428
16,
919,
745
Insi
dePa
kist
anO
utsi
dePa
kist
an
(Rup
ees
in th
ousa
nd)
Agg
rega
teG
ener
alIn
sura
nce
Conv
entio
nal
Busin
ess
Acc
iden
tan
d H
ealth
Bus
ines
s
Non
-un
itize
din
vest
men
tlin
ked
busi
ness
Insi
dePa
kist
anO
utsi
dePa
kist
anIn
side
Paki
stan
Insi
dePa
kist
anIn
side
Paki
stan
Insi
dePa
kist
anIn
side
Paki
stan
Out
side
Paki
stan
Out
side
Paki
stan
Out
side
Paki
stan
Out
side
Paki
stan
Out
side
Paki
stan
Agg
rega
teLi
feIn
sura
nce
Gra
ndTo
tal
Fire
and
Pro
pert
yD
amag
eM
arin
e, A
viat
ion
and
Tran
spor
tM
otor
Mis
cella
neou
sTr
eaty
Una
lloca
ted
Cor
pora
teA
sset
s/ L
iabi
litie
sTo
tal
Life
Insu
ranc
e
30 J
une
2011
CONSOLIDATED CONDENSED INTERIMNOTES TO THE FINANCIAL INFORMATION (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
58 HALF YEARLY REPORTJUNE, 2011
Reve
nue
acco
unt
Net p
rem
ium
reve
nue
639
,835
4
86,7
53
997
,887
1
,025
,265
-
3
6,39
7 8
2
34,5
64
3,4
20,7
09
2,8
58,5
19
9,1
56
24,
161
527
,448
1
0,07
0 -
-
-
-
5
70,8
35
612
,921
3
,991
,544
3
,471
,440
Net c
laim
s (4
31,6
59)
(231
,933
) (7
69,9
47)
(738
,647
) -
(1
5,99
5) -
(4
10)
(2,1
88,5
91)
(1,8
67,8
66)
(765
) (1
,105
) (3
39,0
94)
(980
) -
-
-
-
(3
41,9
44)
(324
,546
) (2
,530
,535
) (2
,192
,412
)
Expe
nses
(114
,640
) (8
7,21
2) (1
78,7
93)
(183
,698
) -
(1
6,37
7) (4
6) (6
0,96
3) (6
41,7
29)
(598
,735
) (1
,228
) (3
,241
) (7
0,76
3) (1
,351
) -
-
-
-
(7
6,58
3) (6
8,25
7) (7
18,3
12)
(666
,992
)
Net c
omm
issio
n (5
0,84
0) (8
1,15
6)(7
7,24
7) 1
,016
-
(1
2,31
2) (4
) (1
48,5
19)
(369
,062
) (2
31,0
34)
602
(3
,844
) (5
3,96
3) (5
49)
-
-
-
-
(57,
754)
(41,
883)
(426
,816
) (2
72,9
17)
Net I
nves
tmen
t inc
ome
-
stat
utor
y fu
nd -
-
-
-
-
3
,400
4
9
,873
1
3,27
7 9
52
-
-
-
-
-
-
-
-
-
-
13,
277
952
Add:
Pol
icyho
lder
's lia
biliti
es
a
t beg
inni
ng o
f the
per
iod
-
-
-
-
-
20,
034
59
79,
386
99,
479
11,
499
-
-
-
-
-
-
-
-
-
-
99,
479
11,
499
Less
: Pol
icyho
lder
's lia
biliti
es
a
t end
of t
he p
erio
d -
-
-
-
-
(2
5,11
3) (1
54)
(197
,080
) (2
22,3
47)
(20,
157)
-
-
-
-
-
-
-
-
-
-
(222
,347
) (2
0,15
7)
Capi
tal c
ontri
butio
n fro
m
s
hare
hold
er's
fund
-
-
-
-
-
23,
927
133
8
3,14
9 1
07,2
09
85,
869
-
-
-
-
-
-
-
-
-
-
107
,209
8
5,86
9
Surp
lus
of p
olicy
hold
er fu
nds
-
-
-
-
-
(13,
961)
-
-
(13,
961)
(25,
010)
-
-
-
-
-
-
-
-
-
-
(13,
961)
(25,
010)
Unde
rwrit
ing
resu
lt 4
2,69
6 8
6,45
2 (2
8,10
0)
103
,936
-
-
-
-
2
04,9
84
214
,037
7
,765
1
5,97
1 6
3,62
8 7
,190
-
-
-
-
9
4,55
4 1
78,2
35
299
,538
3
92,2
72
Inve
stm
ent i
ncom
e - o
ther
435
,945
2
41,8
11
-
-
435
,945
2
41,8
11
Rent
al in
com
e 3
30
718
-
-
3
30
718
Oth
er in
com
e 7
1,81
0 5
7,82
5 1
5,76
9 1
3,39
6 8
7,57
9 7
1,22
1
713
,069
5
14,3
91
110
,323
1
91,6
31
823
,392
7
06,0
22
Gen
eral
and
adm
inist
ratio
n ex
pens
es (3
57,1
88)
(260
,329
) (4
1,96
6) (3
6,46
2) (3
99,1
54)
(296
,791
)
Exch
ange
gai
n 2
48
207
3
-
2
51
207
Fina
nce
char
ge o
n le
ase
liabi
lities
(9,8
72)
(10,
223)
-
-
(9,8
72)
(10,
223)
Shar
e of
pro
fit o
f ass
ocia
ted
com
pani
es 1
73,8
74
6,8
13
-
-
173
,874
6
,813
Prof
it be
fore
tax
520
,131
2
50,8
59
68,
360
155
,169
58
8,49
1 4
06,0
28
Prov
ision
for t
axat
ion
(114
,996
) (9
0,32
0) -
-
(1
14,9
96)
(90,
320)
Prof
it af
ter t
ax 4
05,1
35
160
,539
6
8,36
0 1
55,1
69
473
,495
3
15,7
08
13.2
For
gen
eral
insu
ranc
e, e
ach
clas
s of
bus
ines
s ha
s be
en id
entif
ied
as r
epor
tabl
e se
gmen
t w
here
as,
for
life
insu
ranc
e th
e st
atut
ory
fund
s ar
e tr
eate
das
rep
orta
ble
segm
ents
. Fol
low
ing
is a
sch
edul
e of
seg
men
t wis
e re
venu
e an
d re
sults
:
Accid
ent
and
Heal
thBu
sines
s
Gen
eral
Insu
ranc
eLi
fe In
sura
nce
Tota
lG
ener
al In
sura
nce
Tota
lAg
greg
ate
Life
Insu
ranc
e
BUSI
NESS
UND
ERW
RITT
EN IN
SIDE
PAK
ISTA
N
30 June
2011
30 June
2010
Conv
entio
nal
Busin
ess
Non-
unitiz
edIn
vest
men
tLi
nked
Busin
ess
Mar
ine,
avia
tion
and
trans
port
Misc
ella
neou
sTr
eaty
Mot
or
BUSI
NESS
UND
ERW
RITT
EN O
UTSI
DE P
AKIS
TAN
30 June
2011
30 June
2010
30 June
2011
Conv
entio
nal
Busin
ess
Accid
ent
and
Heal
thBu
sines
s
Non-
unitiz
edIn
vest
men
tLi
nked
Busin
ess
Fire
and
prop
erty
dam
age
Mar
ine,
avia
tion
and
trans
port
Misc
ella
neou
sTr
eaty
Mot
orFi
re a
ndpr
oper
tyda
mag
e
30 June
2010
(Rup
ees
in th
ousa
nd)
14. GENERAL
Figures have been rounded off to the nearest thousand of rupees.
15. AUTHORIZATION FOR ISSUE
These condensed interim consolidated financial information have been authorized for issue on 30 August 2011by the Board of Directors of the Company.
Umer ManshaChairman
S.M. JawedDirector
Manzar MushtaqManaging Director & Chief Executive Officer
Ibrahim ShamsiDirector
59
CONSOLIDATED CONDENSED INTERIMNOTES TO THE FINANCIAL INFORMATION (UNAUDITED)FOR THE HALF YEAR ENDED 30 JUNE 2011
HALF YEARLY REPORTJUNE, 2011