Jubilee General Insurance sees profits rise 14%

Higher net premium revenues help insurer earn Rs457m in first half of 2013.

KARACHI:

Jubilee General Insurance announced the after-tax profit of Rs456.8 million for January-June 2013, up 14.4% from the corresponding six-month period in 2012, according to a notice sent to the Karachi Stock Exchange (KSE) on Friday.

The company’s earnings per share of rose to Rs3.35 from Rs2.93 at the end of June 2012. It did not declare any payout along with the results.

Net premium revenues of the company increased to Rs1.6 billion, up 14.2% from Rs1.4 billion in the corresponding six-month period in 2012. However, the underwriting result for the six-month period remained Rs115.7 million, up 12% from the comparable period last year. The fact that the underwriting result increased at a rate lower than the rate of increase in net premium revenues shows that net claims, expenses and net commission rose at a relatively faster pace in the six-month period under consideration.

One of the reasons for an increase in the company’s profitability is its investment income, which jumped to Rs338.1 million, up 21.5% from Rs278.2 million in June 2012.

Jubilee Insurance deals in fire and property, marine aviation and transport, motor, liability, accident and health and ‘others’ segments of the insurance business. The largest share in net premium revenues of Jubilee General Insurance in the first half of 2013 came from the motor category, which was Rs435.1 million, or 26% of net premium revenues.

Published in The Express Tribune, August 24^th 2013.

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