Adamjee posts lowest profit in a decade
Adamjee Insurance’s net profit plummeted 73% to Rs132 million in 2011.
KARACHI:
Adamjee Insurance’s net profit plummeted 73% to Rs132 million in 2011, the industry giant’s lowest earnings in a decade.
Though the company’s core underwriting business posted a growth of 115% to Rs529 million, however, sharp rise of 147% in admin and general expenses to Rs1.6billion diluted the growth, according to Topline Securities analyst Farhan Mahmood.
A tax benefit saved the giant from sinking into the negative zone as the massive growth in admin expenses resulted in a loss before taxation of Rs42 million during 2011.
The company’s stock price fell 2.9% to Rs49.98 during trade at the Karachi Stock Exchange on Monday. Net premium grew by a modest 1.4% to Rs 7 billion while net claim declined by 2.4% to Rs4.7 billion.
Alone in the final quarter of October to December 2011, Adamjee posted a loss per share of Rs1.91 against profit of Rs2.83 per share in the same period last year.
Published in The Express Tribune, March 27th, 2012.
Adamjee Insurance’s net profit plummeted 73% to Rs132 million in 2011, the industry giant’s lowest earnings in a decade.
Though the company’s core underwriting business posted a growth of 115% to Rs529 million, however, sharp rise of 147% in admin and general expenses to Rs1.6billion diluted the growth, according to Topline Securities analyst Farhan Mahmood.
A tax benefit saved the giant from sinking into the negative zone as the massive growth in admin expenses resulted in a loss before taxation of Rs42 million during 2011.
The company’s stock price fell 2.9% to Rs49.98 during trade at the Karachi Stock Exchange on Monday. Net premium grew by a modest 1.4% to Rs 7 billion while net claim declined by 2.4% to Rs4.7 billion.
Alone in the final quarter of October to December 2011, Adamjee posted a loss per share of Rs1.91 against profit of Rs2.83 per share in the same period last year.
Published in The Express Tribune, March 27th, 2012.