Adamjee Insurance records impressive rise in fortunes
Books 84.4% increase in net profits to Rs703.5 million.
The net premium revenues of the company increased 20.4% to Rs2.1 billion. PHOTO: FILE
KARACHI:
The after-tax profit of Adamjee Insurance Company for the first quarter of 2013 increased 84.4% to Rs703.5 million, according to the consolidated interim profit and loss account of the company for the three-month period released to the Karachi Stock Exchange on Tuesday.
While the net premium revenues of the company increased 20.4% to Rs2.1 billion, after-tax profit rose sharply on the back of other investment income, which was up 140.1% in January-March 2013 compared to the corresponding quarter in 2012. Earnings per share increased from Rs3.08 to Rs5.89 in the three-month period.
Among liabilities, net claims witnessed a drop of 13%, while expenses also remained largely flat, ultimately resulting in a higher level of profit. Net investment income from the statutory fund also increased 220.2% over the same period. An increase of Rs1.2 billion in the rental income of the company also helped the bottom line grow year-on-year.
Meanwhile, exchange gains clocked in at Rs1.2 billion during March-January 2013, after an increase of 203.7% compared to the corresponding period last year. Exchange gains accrue to a company when converting assets valued in foreign currencies yields more in terms of the home currency due depreciation in the value of the home currency. In this case, the rupee is weaker by 8.6% against the dollar since last year.
Adamjee Insurance, along with Jubilee General Insurance and EFU General Insurance, enjoys a market share of 65% in gross written premiums.
Published in The Express Tribune, May 1st, 2013.
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The after-tax profit of Adamjee Insurance Company for the first quarter of 2013 increased 84.4% to Rs703.5 million, according to the consolidated interim profit and loss account of the company for the three-month period released to the Karachi Stock Exchange on Tuesday.
While the net premium revenues of the company increased 20.4% to Rs2.1 billion, after-tax profit rose sharply on the back of other investment income, which was up 140.1% in January-March 2013 compared to the corresponding quarter in 2012. Earnings per share increased from Rs3.08 to Rs5.89 in the three-month period.
Among liabilities, net claims witnessed a drop of 13%, while expenses also remained largely flat, ultimately resulting in a higher level of profit. Net investment income from the statutory fund also increased 220.2% over the same period. An increase of Rs1.2 billion in the rental income of the company also helped the bottom line grow year-on-year.
Meanwhile, exchange gains clocked in at Rs1.2 billion during March-January 2013, after an increase of 203.7% compared to the corresponding period last year. Exchange gains accrue to a company when converting assets valued in foreign currencies yields more in terms of the home currency due depreciation in the value of the home currency. In this case, the rupee is weaker by 8.6% against the dollar since last year.
Adamjee Insurance, along with Jubilee General Insurance and EFU General Insurance, enjoys a market share of 65% in gross written premiums.
Published in The Express Tribune, May 1st, 2013.
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