Habib Insurance

Est.1942

Habib Insurance Company Limited

Accounts for the Nine months ended

September 30, 2023

(Unaudited)

Habib Insurance Company Limited

Contents

Company Information

1

Directors' Review

2

Condensed Interim Statement of Financial Position

4

Condensed Interim Statement of Profit or Loss and Other Comprehensive Income

5

Condensed Interim Statement of Changes in Equity

6

Condensed Interim Statement of Cash Flow

7

Notes to the Condensed Interim Financial Statements

8

Financial Statements - Window Takaful Operations

Condensed Interim Statement of Financial Position

28

Condensed Interim Statement of Profit and Loss and Comprehensive Income

29

Condensed Interim Statement of Changes in Fund

30

Condensed Interim Statement of Cash Flow

31

Notes to the Condensed Interim Financial Statements

32

Habib Insurance Company Limited

Company Information

Board of Directors

Chairman

:

Rafiq M. Habib

Directors

:

Mansoor G. Habib

Muhammad Hyder Habib

Qumail R. Habib

Aun Mohammad A. Habib

Shahid Ghaffar

Ali Fadoo

Maleeha Humayun Bangash

Shabbir Gulamali

Chief Executive

:

Syed Ather Abbas

Chief Financial Officer

:

Murtaza Hussain

Company Secretary

:

Muhammad Maaz Akbar

Auditors

:

M/s. Grant Thornton Anjum Rahman

Chartered Accountants

Share Registrar

:

M/s. CDC Share Registrar Services Limited

CDC House, 99-B,Block-B

SMCHS, Main Shahrah-e-Faisal

Karachi-74400

Registered Office

:

1st Floor, State Life Bldg. No. 6

Habib Square, M. A. Jinnah Road

P.O. Box 5217, Karachi-74000

Pakistan

Tel

:

(92-21) 32424030/38/39

Fax

:

(92-21) 32421600

UAN

: (92-21) 111 03 03 03

Website

:

www.habibinsurance.net

1

Habib Insurance Company Limited

DIRECTORS' REVIEW

The Directors are pleased to present the unaudited accounts of the Company for the period ended September 30, 2023.

Reviewing the underwriting results for the nine months of the year, by the Grace of Allah, the written gross premium grew by 20% from Rs. 2.26 billion to Rs. 2.7 billion with net premium revenue also rising from Rs. 1.04 billion to Rs. 1.39 billion, an increase of 34%. There was however an underwriting loss of Rs. 181.6 million for the period primarily due to higher claims in marine & motor class of business.

Investment Income for the period under review was Rs. 223.8 million as compared to Rs. 70.4 million of last year mainly due to higher income recorded in fixed income securities. A positive factor has also been the KSE 100 Index rising to 51000 points.

As a result, the profit after tax was Rs. 74.9 million with an earning of Rs. 0.61 per share.

We are now into the last quarter of the year and are actively working towards improvement in underwriting results.We pray to Allah for the peace and prosperity around the globe.

On behalf of the Board of Directors

AUN MOHAMMAD A. HABIB

SYED ATHER ABBAS

Director

Chief Executive

Karachi: October 26, 2023

2

3

Habib Insurance Company Limited

Condensed Interim Statement of Financial Position (Unaudited)

As at September 30, 2023

Note

Assets

Property and equipment

8

Intangible assets

Investments

9

Equity securities

Government securities

10

Term finance certificate

11

Loans, deposits and other receivables

12

Insurance/ reinsurance receivables

13

Reinsurance recoveries against outstanding claims

22

Salvage recoveries accrued

23

Deferred commission expense

Prepayments

14

Taxation - payment less provision

15

Cash and bank

Total Assets of Window Takaful Operations - Operator's Fund

Total assets

EQUITIES AND LIABILITIES

Capital and reserves attributable

to Company's equity holders

16

Ordinary share capital

Reserve

17

Unappropriated profit

Total Equity

Liabilities

Underwriting provisions

22

Outstanding claims including IBNR

Unearned premium reserves

21

Premium deficiency reserves

23

Unearned reinsurance commission

Retirement benefit obligations

Deferred taxation - net

Lease Liability against right of use assets

15.1

Borrowings

Premium received in advance

18

Insurance/ reinsurance payables

Other creditors and accruals

19

Total liabilities of conventional

Total liabilities of Window Takaful Operations - Operator's Fund

Total liabilities

Total Equity and Liabilities

Contingencies and commitments

20

(Unaudited) (Audited)

September 30, December 31,

20232022 (Rupees in ' 000)

101,874

56,102

287

449

837,791

821,124

745,455

715,268

150,000

100,573

116,023

182,727

1,318,536

886,380

652,936

637,543

82,806

38,933

170,605

146,080

695,444

525,417

27,543

5,835

26,077

306,241

4,925,377

4,422,672

213,344

120,967

5,138,721

4,543,639

619,374

619,374

475,399

414,961

81,512

133,967

1,176,285

1,168,302

1,118,649

959,567

1,346,172

1,202,472

976

6,188

167,549

156,637

118,807

130,311

21,120

17,290

35,427

30,908

120,544

-00

71,489

60,189

501,534

425,363

329,291

303,447

3,831,558

3,292,372

130,878

82,965

3,962,436

3,375,337

5,138,721

4,543,639

The annexed notes from 1 to 32 form an integral part of these condensed interim financial statements.

RAFIQ M. HABIB

AUN MOHAMMAD A. HABIB

SHABBIR GULAMALI

SYED ATHER ABBAS

MURTAZA HUSSAIN

Chairman

Director

Director

Chief Executive

Chief Financial Officer

4

Habib Insurance Company Limited

Condensed Interim Statement of Profit or Loss and Other Comprehensive Income (Unaudited)

For the nine months period ended September 30, 2023

(Unaudited)

(Unaudited)

Three months period

Nine months period

ended Setpember 30,

ended September 30,

2023

2022

2023

2022

Note

(Rupees in '000)

(Rupees in '000)

Net insurance premium

21

393,260

350,515

1,157,819

907,301

Net insurance claims

22

(254,428)

(185,488)

(739,820)

(465,299)

Reversal of premium deficiency

-

-

5,212

6,324

Net commission revenue

23

(55,778)

6,218

(44,476)

40,476

Insurance claims and acquisition expenses

(310,206)

(179,270)

(779,084)

(418,499)

Management expenses

(162,096)

(149,833)

(560,312)

(450,652)

Underwriting results

(79,042)

21,412

(181,577)

38,150

Investment income - net

24

84,156

40,857

223,774

70,422

Other income

25

1,598

4,475

21,670

10,017

Other expenses

(3,588)

(2,972)

(11,523)

(8,235)

Results of operating activities

3,124

63,772

52,344

110,354

Finance costs

(3,741)

(913)

(6,479)

(2,971)

Profit before tax from Window Takaful Operations - Operator's Fund

Profit before tax

Income tax expense

Profit after tax

Other comprehensive income:

Items that may be reclassified subsequently to profit and loss account

Unrealised (loss)/ gain on revaluation of available-for-sale investments

Less: Net (loss)/ gain transferred to profit and loss

on disposal / redemption / impairment of investments

Related tax impact

Other comprehensive income from window takaful operations - Operator's fund

Other comprehensive income / (loss) for the period Total comprehensive income / (loss) for the period

Earning per share - Rupees

26

24,093 6,116

23,476 68,975

(7,594) (20,315)

15,882 48,660

90,304 (101,802)

  • 44,805
    90,304 (56,997)

(31,537)

16,529

58,767

(40,468)

-

-

58,767

(40,468)

74,649

8,192

(Rupees)

0.13 0.39

62,626 4,488

108,491 111,871

(33,524) (30,694)

74,967 81,177

15,356 (146,135)

  1. 25,173
    14,702 (120,962)
    (4,264) 35,079

10,438

(85,883)

-

-

10,438

(85,883)

85,405

(4,706)

(Rupees)

0.61 0.66

The annexed notes from 1 to 32 form an integral part of these condensed interim financial statements.

RAFIQ M. HABIB

AUN MOHAMMAD A. HABIB

SHABBIR GULAMALI

SYED ATHER ABBAS

MURTAZA HUSSAIN

Chairman

Director

Director

Chief Executive

Chief Financial Officer

5

Habib Insurance Company Limited

Condensed Interim Statement of Changes in Equity (Unaudited)

For the nine months period ended September 30, 2023

Attributable to equity holders of the Company

Capital Reserves

Revenue Reserves

Share

Reserve for

General

Available

Unappropriated

Total

capital

exceptional

reserve

for sale

profit

Equity

losses

reserve

(Rupees in '000)

Balance as at January 01, 2022

Profit after tax for the period

Other comprehensive income for the period - net of tax

(net unrealized loss on revaluation of available for sale investments) Total comprehensive income for the period

Transactions with owners directly recorded with equity

Final dividend of Rs. 0.625 per share for the year ended December 31, 2021 Transfer to general reserve

Balance as at September 30, 2022

Balance as at January 01, 2023

Profit after tax for the period

Other comprehensive income for the period-net of tax (net unrealized loss on revaluation of available for sale investments)

Total comprehensive income for the period

Transactions with owners directly recorded in equity

Final dividend of Rs. 0.625 per share for the year ended December 31, 2022 Transfer to general reserve

Balance as at September 30, 2023

619,374

-

-

-

-

-

619,374

619,374

-

-

-

-

-

619,374

9,122

-

-

-

-

-

9,122

9,122

-

-

-

-

-

9,122

255,000

-

-

-

-

50,000

305,000

305,000

-

-

-

-

50,000

355,000

228,932

-

(85,883 )

(85,883 )

-

-

143,049

100,839

-

10,438

10,438

-

-

111,277

142,646

81,177

-

81,177

(77,422)

(50,000)

96,401

133,967

74,967

-

74,967

(77,422)

(50,000)

81,512

1,255,074

81,177

(85,883)

(4,706)

(77,422)

-

1,172,946

1,168,302

74,967

10,438

85,405

(77,422)

-

1,176,285

The annexed notes from 1 to 32 form an integral part of these condensed interim financial statements.

RAFIQ M. HABIB

AUN MOHAMMAD A. HABIB

SHABBIR GULAMALI

SYED ATHER ABBAS

MURTAZA HUSSAIN

Chairman

Director

Director

Chief Executive

Chief Financial Officer

6

Habib Insurance Company Limited

Condensed Interim Statement of Cash Flow (Unaudited) For the nine months period ended September 30, 2023

Operating cash flows

  1. Underwriting activities Insurance premium received Reinsurance premium paid Claims paid
    Reinsurance and other recoveries received Commission paid
    Commission received
    Net cash flows from underwriting activities
  2. Other operating activities Income tax paid
    Other operating payments Other operating receipts Loans advanced
    Loan repayment received
    Net cash flow from other operating activities Total cash flow from all operating activities Investment activities
    Profit / return received Dividend received Payment for investments Proceeds from investments Fixed capital expenditure
    Proceeds from sale of property, plant and equipment
    Total cash flow from investing activities Financing activities

(Unaudited)

(Unaudited)

September 30,

September 30,

2023

2022

(Rupees in ' 000)

1,849,301

1,685,234

(1,064,746)

(785,166)

(1,305,788)

(922,028)

665,784

540,604

(286,117)

(231,860)

266,308

285,105

124,742

571,889

(22,775)

(47,208)

(520,261)

(401,911)

2,407

2,030

(3,477)

(4,590)

14,781

17,141

(529,325)

(434,538)

(404,583)

137,351

40,528

21,207

112,890

112,171

(376,130)

(960,891)

364,422

1,193,773

(49,206)

(7,278)

6972,971

93,201361,953

Rentals paid

(13,337)

Dividends paid

(75,989)

Total cash flows from financing activities

(89,326)

Net cash flows from all activities

(400,708)

Cash and cash equivalents at beginning of year

306,241

Cash and cash equivalents at end of period

(94,467)

Reconciliation to profit and loss account

Operating cash flows

(404,583)

Depreciation and amortisation expense

(17,258)

Income tax paid

22,775

Provision for gratuity

(22,586)

Provision for impairment

616

Gratuity paid

34,090

Profit/ return received

40,528

Dividends received

112,890

Gain / (loss) on sale of investments

654

Financial charges expense

(6,479)

Profit on disposal of property, plant and equipment

221

Provision of taxation

(33,524)

Profit from window Takaful Operations - Operator's Fund

62,626

Increase / (decrease) in assets other than cash

712,006

(Increase) / decrease in liabilities other than borrowings

(427,009)

Profit after taxation

74,967

The annexed notes from 1 to 32 form an integral part of these condensed interim financial statements.

(5,784)

(74,361)

(80,145)

419,159

88,566

507,725

137,351

(14,158)

47,208

(18,620)

(30,562)

208

21,207

112,171

(25,173)

(2,971)

528

(30,694)

4,488

519,329

(639,135)

81,177

RAFIQ M. HABIB

AUN MOHAMMAD A. HABIB

SHABBIR GULAMALI

SYED ATHER ABBAS

MURTAZA HUSSAIN

Chairman

Director

Director

Chief Executive

Chief Financial Officer

7

Habib Insurance Company Limited

Notes to the Condensed Interim Financial Statements

for the nine months period ended September 30, 2023 (Unaudited)

1. LEGAL STATUS AND NATURE OF BUSINESS

  1. Habib Insurance Company Limited (the Company) was incorporated as a Public Limited Company in the year 1942 under the Companies Act, 1913 (now the Companies Act, 2017). The registered office of the Company is situated at Habib Square, M.A. Jinnah Road, Karachi and the shares of the Company are quoted on the Pakistan Stock Exchange Limited. The Company is engaged in general insurance business comprising of Fire and property, Marine and transport, Motor, Group hospitalization and other classes.
    The Company, as an Operator, was allowed to work as Window Takaful Operator on July 18, 2018 by Securities and Exchange Commission of Pakistan (SECP) under SECP Takaful Rules, 2012 to carry on General Window Takaful Operations (WTO) in Pakistan. The registered office of the Operator is situated at Habib Square, M.A. Jinnah Road, Karachi.
  2. The Company operates through the following locations in Pakistan;

Locations

Address

Head Office

State Life Building No. 6, Habib Square, M.A. Jinnah Road, Karachi.

Karachi Branches

Head Office: State Life Building No. 6A Habib Square, M.A. Jinnah

Rawalpindi Branch

Road, Karachi.

1st Floor, Majeed Plaza, Bank Road, Rawalpindi Cantt.

Dera Ghazi Khan Branch

Block No. 17, Jampur Road, Dera Ghazi Khan.

Faisalabad Branch

Fatima Tower, 2nd Floor, Kohinoor Plaza, Faisalabad. P-6161, West

Multan Branch

Canal Road.,

Fiesta Gardens, OPP Income, Tax Office, L.M.Q. Road, Multan.

Lahore Branch

320-G3, Main Boulevard, Johar Town, Lahore.

2. BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE

2.1 These condensed interim financial statements have been prepared in accordance with the accounting and reporting standard as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

  • International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and
  • Provisions of and directives issued under the Companies Act, 2017 and Insurance Ordinance, 2000, Insurance Rules 2017, Insurance Accounting Regulations 2017, Takaful Rules 2012 and General Takaful Accounting Regulations 2019.

Where the provisions and directives issued under the CompaniesAct, 2017 and Insurance Ordinance, 2000, Insurance Rules 2017, Insurance Accounting Regulations 2017, Takaful Rules 2012, General Takaful Accounting regulations 2019 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 and Insurance Ordinance, 2000, Insurance Rules 2017, Insurance Accounting Regulations 2017, Takaful Rules 2012 and General Takaful Accounting Regulations 2019 have been followed.

  1. These condensed interim financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company's annual financial statements for the year ended December 31, 2022.
  2. As required under regulations 6(3) of the General Takaful Accounting Regulations, 2019, total assets, liabilities and profit of the Window Takaful Operations - Operator's fund are disclosed as a single line item in condensed interim statement of financial position and condensed interim profit and loss account respectively. Supporting notes where considered necessary for the understanding of the users of these condensed interim financial statements are enclosed as part of notes to these financial statements.

8

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Habib Insurance Company Ltd. published this content on 27 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2023 09:52:42 UTC.