This business constituted 23% of net premium. An amount of Rs 385.5 million was booked as net premium for marine, aviation and transport insurance and constituted 22.1% of total net premium.
Adamjee Insurance Company Limited is a public limited company. It was incorporated in Pakistan on September 28, 1960. The registered office of the company is situated at Adamjee House, I.I. Chundrigar Road Karachi. It is listed on Karachi and Lahore Stock Exchanges and is engaged in the general insurance business.
The company also operates branches in the United Kingdom (UK), the United Arab Emirates (UAE), the Kingdom of Saudi Arabia (KSA) and Export Processing Zone (EPZ). It has been reported that the branches in the UK and KSA have closed down their operations and are in "run off" status with effect from January 1, 1998 and October 1, 2003 respectively.
Balances pertaining to the company's operations in the UK, KSA EPZ have been accounted for in the financial statements under review based on the unaudited certified returns received from the respective branches/agencies whereas that of the UAE are accounted for on the basis of audited financial statements.
The shareholders in the Annual General Meeting held on May 29, 2004 elected directors for a period of three years. The newly elected Board of Directors in the meeting held on June 11, 2004 appointed Syed Jawad Gillani as the Managing Director and CEO of the company.
During the half year under review (HY 2004), the company's business in Pakistan substantially improved as compared to the same period last year (SPLY). In this case, the growth in gross premium was registered at 27%.
On the other hand the overseas business declined as the gross premium was 40.31% lower during HY 2004 as compared to SPLY. The company reviewed the business strategy for UAE to overcome the historical adverse business trends and the company experienced substantial claims.
However overall business of the company registered improved performance as the gross premium was in the sum of Rs 2.639 billion as against Rs 2.361 billion.
The company's net premium shot up to Rs 1.743 billion from Rs 1.461 billion in the same period last year. Its underwriting profit after accounting for net claims, expenses, net commission and premium deficiency reversed works out to Rs 84.09 million which is 4.8% of net premium as against 4.1% in the SPLY.
Net profit after taxation amounted to Rs 177.3 million as against Rs 154.9 million showing 14.5% increase over SPLY. The company's capital base expanded by Rs 201.5 million within six months.
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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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June 30 December 31
2004 2003
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Share Capital-Paid-up: 826.14 624.68
Retained Earnings/Acc (Loss): 197.40 (399.88)
Reserves: 213.12 834.58
Shareholders Equity: 1,236.66 1,059.38
Provision for Outstanding
Claims Including IBNR: 2,607.87 2,725.49
Provision for Unearned Premium: 2,062.24 2,446.93
Additional Provision
Unexpired Risks: 75.00 85.00
Commission Income Unearned: 154.62 217.31
Total Underwriting Provisions: 4,899.73 5,474.73
Deferred Liability: 9.53 10.97
Creditors & Accruals: 898.38 1,110.29
Other Liabilities: 6.94 8.33
Cash & Bank Deposits: 603.61 849.63
Loans to Employees & Others: 39.05 40.87
Investments: 2,353.97 2,218.20
Deferred Taxation: 169.05 235.48
Other Assets: 3,692.51 4,125.16
Fixed Assets Tangible/Intangible: 193.05 194.36
Total Assets: 7,051.24 7,663.70
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Profit & Loss A/c For the
Half Year Ended June 30 2004 2003
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Revenue Profit & Pay Out
Net Premium Revenue From
Fire & Property: 399.92 NA
Marine Aviation & Transport: 385.47 NA
Motor: 789.16 NA
Other: 155.49 NA
Treaty: 12.69 NA
Net Premium: 1,742.73 1,460.68
(Net Claims): (1,167.46) (983.24)
(Expenses): (425.79) (345.82)
Premium Deficiency Reversal: 10.00 -
Net Commission: (75.39) (71.17)
Underwriting Result: 84.09 60.45
Investment Income: 168.70 190.13
Rental Income: 0.25 0.53
Other Income: 45.52 20.52
Gen & Admin (Expenses): (44.84) (54.36)
Profit Before Taxation: 253.72 217.27
Profit After Taxation: 177.28 154.93
Earning Per Share (Rs): 2.15 1.88
Share Price (Rs) Dated 07/02/05: 77.50 -
Gross Premium Written: 2639 2361
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Financial Ratios
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Price/Earning Ratio: 36.05 -
Book Value Per Share: 14.97 16.95
Price/Book Value Ratio: 5.18 -
Net Profit/Net Premium (%): 10.17 10.60
Net/Gross Premium Ratio (%): 66.04 61.87
R O E (%): 14.33 14.62
R O A (%): 2.51 2.02
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COMPANY INFORMATION: Managing Director & Chief Executive: Syed Jawad Gillani; Director: Mohammad Choudhry; Director: Abdul Razak Adamjee; Company Secretary & Head Office: Adamjee House, I.I. Chundrigar Road Karachi; Registered Office: Not Reported; Web Address: www.adamjeeinsurance.com