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)
-
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
-
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 - 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
-
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. - 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.
- 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.
- 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.