PINNACLE OF SUCCESS - Adamjee Insurance€¦ · Mobilink Microﬁnance Bank Limited National Bank of Pakistan Samba Bank Limited Soneri Bank Limited The Punjab Provincial Cooperative

PINNACLE OF SUCCESSAt Adamjee Insurance our aspirations reflect the commitment,passion and resilience that goes into our performance for ourcustomers. With our teamwork nothing is unreachable, nomatter what the route ahead for us, we are ready to movemountains. It is the mountain that inspires us to go further,for each climb takes us closer to success.

THE PATHWAYTO SUCCESS

CONTENTS

04

06

08

10

Vision / Core Values

Company Information

Directors’ Review to the members onUnconsolidated Condensed Interim FinancialInformation

Directors’ Review to the members on

78 Auditor's Review Report

12 Auditor's Review Report

Unconsolidated Condensed Interim FinancialInformation (Urdu)

45

48

15 Unconsolidated Condensed Interim FinancialInformation

Directors’ Review on Consolidated CondensedInterim Financial Information

Consolidated Condensed Interim FinancialInformation

79 Condensed Interim FinancialInformation - Window Takaful Operations

VISIONOur will is to explore, innovate and differentiate.

Our passion is to provide leadership to insurance industry.

CORE VALUES• Integrity• Humility• Fun at the Workplace• Corporate Social

Responsibility

BOARD OF DIRECTORSUmer Mansha ChairmanIbrahim Shamsi DirectorImran Maqbool DirectorMuhammad Anees DirectorMuhammad Arif Hameed DirectorSadia Younas Mansha DirectorShaikh Muhammad Jawed DirectorMuhammad Ali Zeb Managing Director & CEO

ADVISORMian Muhammad Mansha

AUDIT COMMITTEEMuhammad Anees ChairmanIbrahim Shamsi MemberShaikh Muhammad Jawed MemberUmer Mansha Member

ETHICS, HUMAN RESOURCE AND REMUNERATION COMMITTEEMuhammad Anees ChairmanIbrahim Shamsi MemberMuhammad Ali Zeb MemberUmer Mansha Member

INVESTMENT COMMITTEEUmer Mansha ChairmanImran Maqbool MemberMuhammad Ali Zeb MemberMuhammad Asim Nagi Member

COMPANY SECRETARY Tameez ul HaqueF.C.A

CHIEF FINANCIAL OFFICERMuhammad Asim NagiA.C.A

COMPANY INFORMATION

6 FIRST QUARTER REPORT

7ADAMJEE INSURANCE

EXECUTIVE MANAGEMNT TEAM Muhammad Ali Zeb Muhammad Asim Nagi Adnan Ahmad Chaudhry Asif Jabbar Muhammad Salim Iqbal AUDITORS Deloitte Yousuf Adil Chartered Accountants 134-A, Abu Bakar Block New Garden Town Lahore, Pakistan SHARIAH ADVISOR Musti Muhammad Hassan Kaleem

SHARE REGISTRAR CDC Share Registrar Services LimitedCDC House, 99-B, Block-B, S.M.C.H.S.,Main Shahra-e-Faisal, Karachi-74400Tel: (92) 0800-23275Fax: (92-21) 34326053

BANKERSAskari Bank LimitedBank Alfalah LimitedAbu Dhabi Commercial BankAllied Bank LimitedBank Al-Habib LimitedBank Islami Pakistan Limited Dubai Islamic Bank Pakistan LimitedEmirates Islamic BankFINCA Microfinance Bank LimitedHabib Bank LimitedHabib Metropolitan BankKhushali Bank LimitedMCB Bank LimitedMCB Islamic Bank LimitedMeezan Bank LimitedMobilink Microfinance Bank LimitedNational Bank of PakistanSamba Bank LimitedSoneri Bank LimitedThe Punjab Provincial Cooperative Bank LimitedUnited Bank LimitedZarai Taraqiati Bank Limited

REGISTERED OFFICE4th Floor, 27-C-III, Tanveer Building, M.M. Alam Road, Gulberg-III, Lahore- 54000, PakistanPhone: (92-42) 35772960-79Fax (92-42) 35772868 Email: [email protected]: www.adamjeeinsurance.com

8 SIX MONTHS REPORT

Directors’ Review to the Members on UnconsolidatedCondensed Interim Financial Information (Un-audited)For the Half year Ended 30 June 2019

On behalf of the Board, we are pleased to present the unaudited unconsolidated condensed interim financial information of the Company for the half year ended 30 June 2019.

Financial Highlights:

The highlights for the period under review are as follows:

Earnings per share - Basic and diluted 1.33 3.00

30 June 2019

Rupees in thousand

(Unaudited)

30 June 2018

(Unaudited)

30 June 2019

Rupees

(Unaudited)

30 June 2018

(Unaudited)

Performance Review:

Gross Premium of the Company increased by 26% and Net Premium increased by 21% over the same period of 2018. There was a drop in profitability of 19% in underwriting results over the last period. Investment income also decreased by 65% in the first half of 2019 as compared to the corresponding figures in the last period due to the continuing underperformance by the stock market. Consequently, profit before tax and profit after tax decreased by 48 % and 56 % respectively.

Window Takaful Operations:

Written contribution and Surplus of Participants’ Takaful Fund amounted to Rs. 636,726 thousands (2018: Rs. 546,281 thousands) and Rs. 71,595 (2018: Rs. 10,664 thousands), respectively. Most of the growth in contribution written came from the Motor and Health line of businesses which contributed 62% and 16%, respectively to the total contribution written in first half of 2019. Window Takaful Operations’ profit before tax increased by 31% amounting to Rs. 57,859 thousands for the half year ended 30 June 2019 (2018: Rs. 44,281 thousands).

Future Outlook:

Insurance Industry in Pakistan has seen several pinnacle and downfalls in the recent years. Still, the market performance indicators exhibit that insurance industry has kept pace with the economic development of the country and excelling performance of other sectors.

So far 2019 has been a year of consolidation for economy in the country in general and that of Adamjee Insurance in particular where Government of Pakistan took durable steps like rupee devaluation, tax reforms and measures to reduce current account deficit. We shall continue our efforts in delivering financial performance while meeting valuable expectations of our customers.

China Pakistan Economic Corridor (CPEC) will continue to propel growth in insurance business especially during the operational phase of its projects.

Gross Premium 12,129,819 9,648,166

Net Premium 7,702,132 6,380,752

Underwriting results 473,457 584,775

Investment Income 381,552 1,078,520

Profit before tax 887,466 1,692,013

Profit after tax 465,963 1,050,321

9ADAMJEE INSURANCE

For and On Behalf of Board of Directors

Lahore: 23 August 2019 Managing Director &

Muhammad Ali Zeb

Chief Executive Officer

Window Takaful Operations are expected to continue capturing promising growth in the second half of CY19 as well. The demand for Shariah compliant products has widely increased in most lines of business, especially, in Motor and Health and is foreseen to increase at robust rates in the upcoming periods.

It is strongly anticipated that Adamjee Insurance is well poised for a perpetual and strong growth to building long-term shareholder value. We shall continue to invest in digital transformation of technology infrastructure, raising skills of human capital and strengthening our compliance and controls environment.

Acknowledgements:

We thank our shareholders, valued customers, employees and development staff for their consistent support during this period for Adamjee Insurance to maintain its position as one of the Pakistan’s leading insurance companies. We are also grateful to the Securities and Exchange Commission of Pakistan and the State bank of Pakistan for their continued guidance and assistance.

Directors’ Review to the Members on UnconsolidatedCondensed Interim Financial Information (Un-audited)For the Half year Ended 30 June 2019

Shaikh Muhammad Jawed

Director

10 SIX MONTHS REPORT

11ADAMJEE INSURANCE


Introduction

We have reviewed the accompanying unconsolidated condensed interim statement of financial position of Adamjee Insurance Company Limited (the Company) as at June 30, 2019, and the related unconsolidated condensed interim profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, and condensed interim cash flow statement and notes to the condensed interim financial information for the six months period then ended (here-in-after referred to as the “condensed interim financial information"). Management is responsible for the preparation and presentation of these condensed interim financial information in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim financial information based on our review. The figures of the condensed interim profit or loss and the condensed interim statement of comprehensive income for the three months period ended June 30, 2019 and related comparative information have not been reviewed, as we are required to review only the cumulative figures for the six months period ended June 30, 2019.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of unconsolidated condensed interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying unconsolidated condensed interim financial information as at June 30, 2019 and for the six months period then ended, are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Other Matter

The annual financial statements of the Company for the year ended December 31, 2018 were audited by another firm of Chartered Accountants who vide their report dated April 3, 2019 expressed a modified opinion thereon.

The engagement partner on the review resulting in this independent auditor’s review report is Rana M. Usman Khan.

Chartered Accountants

Lahore

Date: 23 August 2019

INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF ADAMJEE INSURANCE COMPANY LIMITED (“THE COMPANY”)REPORT ON REVIEW OF UNCONSOLIDATED CONDENSED INTERIM FINANCIAL INFORMATION

13ADAMJEE INSURANCE


UNCONSOLIDATEDCondensed Interim

Financial Informationfor the Six Months Ended

30 June 2019(Unaudited)

15ADAMJEE INSURANCE

Unconsolidated Condensed Interim Statement of Financial PositionAs at 30 June 2019

(Unaudited) (Audited)

30 June 2019Note

Rupees in thousand

31 December 2018

ASSETSProperty and equipment 8 3,514,313Intangible assets 9 79,185Investment in subsidiary 10 694,895Investments

Equity securities 11 18,685,087Debt securities 12 378,029Term deposits 13 4,356,113

Loans and other receivables 14 275,875Insurance / reinsurance receivables 15 7,033,977Reinsurance recoveries against outstanding claims 6,046,905Salvage recoveries accrued 350,340Deferred commission expense / acquisition cost 788,431Prepayments 16 3,048,306Cash and bank 17 2,211,444

47,462,900Total assets of Window Takaful Operations - Operator's Fund 18 382,194TOTAL ASSETS 47,845,094

EQUITY AND LIABILITIESCapital and reserves attributable to the Company's equity holders

Ordinary share capital 3,500,000Reserves 19 3,784,200Unappropriated profit 12,379,158Total Equity 19,663,358

LiabilitiesUnderwriting provisions

Outstanding claims including IBNR 10,461,975Unearned premium reserves 10,100,901Unearned reinsurance commission 221,371

Retirement benefit obligations 198,981Deferred taxation 944,446Premium received in advance 407,988Insurance / reinsurance payables 2,709,714Other creditors and accruals 20 2,205,732Lease liability -Deposits and other payables 692,086Taxation - provision less payments 8,723

27,951,917

Total liabilities of Window Takaful Operations - Operator's Fund 18 229,819TOTAL EQUITY AND LIABILITIES

4,103,95474,850

694,895

17,307,736381,663

5,910,048327,251

8,163,8285,897,373

329,7811,075,2823,755,1061,506,325

49,528,092399,838

49,927,930

3,500,0003,063,291

12,320,12118,883,412

10,669,87511,566,014

237,103222,303595,930368,665

3,771,0202,346,272

134,219672,093254,617

30,838,111

206,40749,927,930 47,845,094

Contingencies and commitments 21

The annexed notes from 1 to 35 form an integral part of this unconsolidated condensed interim financial information.

Muhammad Ali Zeb

Managing Director & Chief Executive Officer

Umer Mansha

Chairman

Muhammad Asim Nagi

Chief Financial Officer

Muhammad Arif Hameed

Director


Director

Unconsolidated Condensed Interim Profit and Loss Account (Unaudited)For six months period ended 30 June 2019

Net insurance premium 22

Net insurance claims 23

Net commission and other acquisition costs 24

Insurance claims and acquisition expenses

Management expenses 25

Underwriting results

Investment income 26

Rental income

Other income 27

Other expenses 28

Results of operating activities

Finance cost

Profit from Window Takaful Operations

- Operator's Fund 18

Profit before tax

Income tax expense

Profit aster tax for the period

Earnings (aster tax) per share - Rupees 29

3,946,935

(2,457,094)

(412,278)

(2,869,372)

(902,275)

175,288

(107,374)

844

(6,937)

(22,105)

39,716

(2,163)

31,425

68,978

(191,361)

(122,383)

(0.35)

3,233,557

(2,020,307)

(323,494)

(2,343,801)

(698,489)

191,267

531,933

2,515

25,909

(34,996)

716,628

-

24,471

741,099

(354,177)

386,922

1.11

7,702,132

(4,734,885)

(781,831)

(5,516,716)

(1,711,959)

473,457

381,522

1,689

30,444

(52,847)

834,265

(4,658)

57,859

887,466

(421,503)

465,963

1.33

6,380,752

(3,831,484)

(602,641)

(4,434,125)

(1,361,852)

584,775

1,078,520

5,030

46,516

(67,109)

1,647,732

-

44,281

1,692,013

(641,692)

1,050,321

3.00


30 June 2019 30 June 2018 30 June 2019 30 June 2018

For three months period ended For six months period ended

Rupees in thousand

Note

Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director


17ADAMJEE INSURANCE


Business Underwritten Inside Pakistan



Rupees in thousand

Note

Net insurance premium

Net insurance claims

Net commission and other acquisition costs


Management expenses


Investment income

Rental income

Other income

Other expenses


Finance cost


- Operator's Fund

22

23

24

26

18

Profit before tax

1,747,879

(970,596)

(101,028)

(1,071,624)

(508,235)

168,020

(164,838)

844

(1,947)

(19,542)

(17,463)

(1,006)

31,425

12,956

1,751,181

(899,469)

(147,073)

(1,046,542)

(503,370)

201,269

513,600

2,515

19,031

(33,106)

703,309

-

24,471

727,780

3,541,069

(1,904,740)

(214,841)

(2,119,581)

(1,043,036)

378,452

278,936

1,689

25,092

(47,338)

636,831

(2,327)

57,859

692,363

3,508,781

(1,763,415)

(244,868)

(2,008,283)

(986,224)

514,274

1,048,461

5,030

32,838

(62,456)

1,538,147

-

44,281

1,582,428


Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director



Business Underwritten Outside Pakistan



Rupees in thousand

Note





Management expenses



Rental income

Other income

Other expenses


Finance cost

Profit before tax

2,199,056

(1,486,498)

(311,250)

(1,797,748)

(394,040)

7,268

57,464

(4,990)

(2,563)

57,179

(1,157)

56,022

1,482,376

(1,120,838)

(176,421)

(1,297,259)

(195,119)

(10,002)

18,333

-

6,878

(1,890)

13,319

- -

13,319

4,161,063

(2,830,145)

(566,990)

(3,397,135)

(668,923)

95,005

102,586

--

5,352

(5,509)

197,434

(2,331)

195,103

2,871,971

(2,068,069)

(357,773)

(2,425,842)

(375,628)

70,501

30,059

-

13,678

(4,653)

109,585

109,585


Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director

19ADAMJEE INSURANCE

Unconsolidated Condensed Interim Statement of Comprehensive Income (Unaudited)For six months period ended 30 June 2019



Rupees in thousand


Other comprehensive income

Items that may be reclassified subsequently to profit and loss:

Unrealized dimunition on 'available-for-sale'

investments - net of tax

Unrealized dimunition on 'available-for-sale' from Window

Takaful Operations - net of tax

Effect of currency translation of investment in foreign branches - net

Total comprehensive (loss) / income for the period

(122,383)

(1,031,125)

(441)

164,279

(989,670)

386,922

(1,325,269)

(1,201)

28,315

(911,233)

465,963

(893,507)

(18)

172,616

(254,946)

1,050,321

(579,389)

(442)

50,708

521,198


Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director

Unconsolidated Condensed Interim Cash Flow Statement (Unaudited)For six months period ended 30 June 2019

30 June 2019 30 June 2018

For six months period ended

Rupees in thousand

Cash flows from operating activities

Underwriting activities

Insurance premium received

Reinsurance premium paid

Claims paid

Surrenders paid

Reinsurance and other recoveries received

Commissions paid

Commissions received

Other underwriting payments

Net cash generated from underwriting activities

Other operating activities

Income tax paid

Other operating payments

Loans advanced

Loans repayments received

Other operating receipts

Net cash used in other operating activities

Total cash generated from all operating activities

Cash flows from investing activities

Profit / return received on bank deposits

Income from Treasury Bills

Dividends received

Rentals received

Payments for investments

Proceeds from disposal of investments

Fixed capital expenditure - operating fixed assets

Fixed capital expenditure - intangible assets

Proceeds from disposal of operating fixed assets

Total cash used in investing activities

Cash flows from financing activities

Payments against lease liabilities

Dividends paid

Net cash used in financing activities

Net cash used in all activities

Cash at beginning of the period

Cash at end of the period

11,274,508

(3,353,024)

(7,207,715)

(37,034)

2,492,697

(1,213,350)

262,247

(1,439,065)

779,264

(142,392)

(26,069)

(35,185)

27,751

22,895

(153,000)

626,264

88,797

16,428

773,231

931

(4,600,659)

3,428,464

(489,669)

-

15,883

(766,594)

(46,506)

(518,283)

(564,789)

(705,119)

2,211,444

1,506,325

9,805,389

(3,143,166)

(7,228,627)

(29,961)

3,485,396

(809,623)

257,857

(1,468,422)

868,843

(495,905)

(31,567)

(30,356)

26,882

10,513

(520,433)

348,410

39,604

20,050

709,629

6,380

(5,723,397)

5,004,725

(409,222)

(2,468)

11,812

(342,887)

-

(315,785)

(315,785)

(310,262)

2,278,614

1,968,352


21ADAMJEE INSURANCE


30 June 2019 30 June 2018


Rupees in thousand

Reconciliation to profit and loss account

Operating cash flows

Depreciation expense

Provision for gratuity

Finance cost

Other income - bank and term deposits

(Loss) / gain on disposal of operating fixed assets

Provision for doubtful balances

Rental income

Increase / (decrease) in assets other than cash

(Increase) / decrease in liabilities other than running finance

Profit on sale of investments

Amortization expense

Increase in unearned premium

Increase in loans and other receivables

Income taxes paid

Increase in tax liabilities

Provision for impairment in value of 'available-for-sale' investments

Dividend and other income


Income from Term Finance Certificates


Profit aster tax

Cash and cash equivalents for the purposes of the statement of cash flows consists of:

Cash and cash equivalents

Current and other accounts

Total cash and cash equivalents

626,264

(115,624)

(23,314)

(4,658)

90,575

(3,909)

(97,352)

1,689

2,108,934

(733,300)

2,568

(11,436)

(1,465,113)

7,435

142,392

(421,503)

(490,685)

773,231

21,910

-

57,859

465,963

4,923

1,501,402

1,506,325

348,410

(62,185)

(16,029)

64,870

4,619

-

-

5,030

(111,288)

716,736

449,506

(7,881)

(838,962)

3,474

495,905

(641,692)

(71,686)

651,730

12,767

2,716

44,281

1,050,321

5,458

1,962,894

1,968,352


30 June 2019 30 June 2018


Rupees in thousand

Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director



Business Underwritten Inside Pakistan

30 June 2019 30 June 2018


Rupees in thousand




Reinsurance premiums paid

Claims paid

Surrenders paid


Commissions paid





Income tax paid


Loans advanced








Dividends received

Rentals received






Total cash (used in) / generated from investing activities


Dividends paid

Net cash used in financing activities

Net cash (used in) / generated from all activities

Cash at the beginning of the period

Cash at the end of the period

7,043,046

(3,287,244)

(3,472,180)

(37,034)

1,454,411

(553,864)

257,151

(947,354)

456,932

(142,392)

(20,557)

(25,594)

20,280

17,543

(150,720)

306,212

17,159

16,428

744,061

931

(1,732,139)

1,363,406

(487,489)

-

15,553

(62,090)

(36,202)

(518,283)

(554,485)

(310,363)

1,153,040

842,677

6,699,970

(3,004,175)

(4,169,425)

(29,961)

2,363,823

(457,643)

254,023

(1,023,134)

633,478

(495,905)

(26,799)

(22,067)

20,612

10,513

(513,646)

119,832

25,161

20,050

709,629

6,380

(2,492,789)

2,847,009

(402,750)

(185)

11,647

724,152

-

(315,785)

(315,785)

528,199

1,107,208

1,635,407

23ADAMJEE INSURANCE


30 June 2019 30 June 2018


Rupees in thousand





Finance cost


(Loss) / gain on disposal of operating fixed assets

Rental income

Increase / (decrease) in assets other than cash

(Increase) / decrease in liabilities other than running finance

Profit on sale of investments




Income taxes paid

Provision for impairment in value of 'available-for-sale' investments


Income from treasury bills

Income from Term Finance Certificates


Profit before tax





306,212

(82,436)

(16,821)

(2,327)

11,807

(3,909)

1,689

1,286,258

(244,387)

2,568

(3,262)

(1,042,244)

3,678

142,392

(490,685)

744,061

21,910

-

57,859

692,363

4,268

838,409

842,677

119,832

(51,245)

(7,625)

-

20,652

4,985

5,030

(560,634)

1,266,870

449,506

(4,766)

(797,345)

1,455

495,905

(71,686)

651,730

12,767

2,716

44,281

1,582,428

5,440

1,629,967

1,635,407


30 June 2019 30 June 2018


Rupees in thousand

Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director



Business Underwritten Outside Pakistan

30 June 2019 30 June 2018


Rupees in thousand




Reinsurance premiums paid

Claims paid


Commissions paid






Loans advanced







Dividends received






Total cash used in investing activities


Payments against lease liabilities

Total cash used in financing activities

Net cash generated from all activities

Cash at beginning of the period

Cash at end of the period

4,231,462

(65,780)

(3,735,535)

1,038,286

(659,486)

5,096

(491,711)

322,332

(5,512)

(9,591)

7,471

5,352

(2,280)

320,052

71,638

29,170

(2,868,520)

2,065,058

(2,180)

-

330

(704,504)

(10,304)

(10,304)

(394,756)

1,058,404

663,648

3,105,419

(138,991)

(3,059,202)

1,121,573

(351,980)

3,834

(445,288)

235,365

(4,768)

(8,289)

6,270

-

(6,787)

228,578

14,443

-

(3,230,608)

2,157,716

(6,472)

(2,283)

165

(1,067,039)

-

-

(838,461)

1,171,406

332,945

25ADAMJEE INSURANCE


30 June 2019 30 June 2018


Rupees in thousand

30 June 2019 30 June 2018


Rupees in thousand





Finance cost


Loss on disposal of operating fixed assets

Provision for doubtful balances

Increase in assets other than cash

Increase in liabilities other than running finance





Profit before tax





320,052

(33,188)

(6,493)

(2,331)

78,768

-

(97,352)

822,676

(488,913)

(8,174)

(422,869)

3,757

29,170

195,103

655

662,993

663,648

228,578

(10,940)

(8,404)

-

44,218

(366)

-

449,346

(550,134)

(3,115)

(41,617)

2,019

-

109,585

18

332,927

332,945


Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director

Unconsolidated Condensed Interim Statement of Changes in Equity (Unaudited)For six months period ended 30 June 2019

Share capital Capital reserves Revenue reserves

TotalIssued,

subscribed

and paid up

Reserve for

exceptional

losses

Investment

fluctuation

reserve

Exchange

translation

reserve

Generalreserve

Fair Value Reserve

Rupees in thousand

Unappropriated Profit

Balance as at 31 December 2017 - (Audited)

Comprehensive income for the period ended 30 June 2018

Profit for the period 01 January 2018 to 30 June 2018Other comprehensive income for the

period 01 January 2018 to 30 June 2018Total comprehensive income for the period

Transactions with owners of the CompanyFinal dividend for the year ended 31 December 2017

@ 10% (Rupee 1/- per share)Balance as at 30 June 2018 - (Unaudited)

Profit for the period 01 July 2018 to 31 December 2018Other comprehensive income for the

period 01 July 2018 to 31 December 2018Total comprehensive income for the period

Transactions with owners of the CompanyInterim dividend for the year ended 30 June 2018

@ 10% (Rupees 1/- per share)Balance as at 31 December 2018 - (Audited)

Profit for the period 01 January 2019 to 30 June 2019Other comprehensive income for the

period 01 January 2019 to 30 June 2019Total comprehensive income for the period

Transactions with owners of the CompanyFinal dividend for the year ended 31 December 2018

@ 15% (Rupees 1.5/- per share)

Balance as at 30 June 2019 - (Unaudited)

3,500,000

-

--

-3,500,000

-

--

3,500,000

-3,500,000

-

--

-

3,500,000

22,859

-

--

-22,859

-

--

22,859

-22,859

-

--

-

22,859

3,764

-

--

-3,764

-

--

3,764

-3,764

-

--

-

3,764

467,100

-

50,70850,708

-517,808

-

96,25496,254

614,062

-614,062

-

172,616172,616

-

786,678

3,570,278

-

(579,831)(579,831)

-2,990,447

(783,432)(783,432)

2,207,015

-2,207,015

-

(893,525)(893,525)

-

1,313,490

936,500

-

--

-936,500

-

--

936,500

-936,500

-

--

-

936,500

11,863,964

1,050,321

-1,050,321

(350,000)12,564,285

188,679

(23,806)164,873

12,729,158

(350,000)12,379,158

465,963

-465,963

(525,000)

12,320,121

20,364,465

1,050,321

(529,123)521,198

(350,000)20,535,663

188,679

(710,984)(522,305)

20,013,358

(350,000)19,663,358

465,963

(720,909)(254,946)

(525,000)

18,883,412


Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director


27ADAMJEE INSURANCE

1 Legal status and nature of business

Adamjee Insurance Company Limited ("the Company") is a public limited company incorporated in Pakistan on 28 September 1960 under the Companies Act, 1913 (now the Companies Act, 2017). The Company is listed on Pakistan Stock Exchange Limited and is engaged in the general insurance business comprising fire & property, marine, motor, accident and health and miscellaneous. The registered office of the Company is situated at Tanveer Building, 27-C-III, MM Alam Road, Gulberg III, Lahore.

The Company also operates through branches in the United Arab Emirates (UAE) and the Export Processing Zone (EPZ).

The Company was granted authorization on 23 December 2015 under Rule 6 of the Takaful Rules, 2012 to undertake Takaful Window Operations in respect of general takaful products by the Securities and Exchange Commission of Pakistan (SECP) and commenced Window Takaful Operations on 01 January 2016.

2 Basis of preparation and statement of compliance

This unconsolidated condensed interim financial information of the Company for the period ended 30 June 2019 has been prepared in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards comprise of:

- International Accounting Standard 34 - "Interim Financial Reporting", issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and

- Provision of and directives issued under the Companies Act, 2017 and the Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012.

Where the provisions of and directives issued under the Companies Act, 2017 differ, the Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012 have been followed.

In terms of the requirements of the Takaful Rules, 2012, read with SECP Circular 25 of 2015 dated 09 July 2015, the assets, liabilities and profit and loss of the Operator Fund of the Window Takaful operations of the Company have been presented as a single line item in the statement of financial position and profit and loss account of the Company respectively. A separate set of condensed interim financial information of the Window Takaful operations has been annexed to this financial information as per the requirements of the Takaful Rules, 2012.

This unconsolidated condensed interim financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with annual financial statements of the Company for the year ended 31 December 2018. Comparative figures for unconsolidated condensed interim statement of financial position are stated from annual audited financial statements of the Company for the year ended 31 December 2018, whereas comparatives for interim profit and loss account, interim statement of comprehensive income, interim statement of changes in equity and interim cash flow statement and related notes are extracted from unconsolidated condensed interim financial information of the Company for the six months ended 30 June 2018.

This unconsolidated condensed interim financial information is unaudited and being submitted to the shareholders as required under Section 237 of the Companies Act, 2017 and the listing regulations of Pakistan Stock Exchange Limited.

3 Basis of measurement

This unconsolidated condensed interim financial information has been prepared under historical cost convention except for certain foreign currency translation adjustments, certain financial instruments carried at fair value, and defined benefit obligations under employee benefits carried at present value. All transactions reflected in this financial information are on accrual basis except for those reflected in cash flow statement.

4 Accounting policies

The accounting policies and the methods of computation adopted in the preparation of the unconsolidated condensed interim financial information are same as those applied in the preparation of annual audited financial statements for the year ended 31 December 2018.

4.1 Standards, amendments or interpretations

The new and revised relevant IFRSs effective in the current period had no significant impact on the amounts reported and disclosures in these condensed interim financial information except the following :

IFRS 16

The Company has adopted IFRS 16 'Leases', issued in January 2016, with the date of initial application on 01 January 2019. IFRS 16 introduces significant changes to lessee accounting. It removes the distinction between operating and finance leases under IAS 17 and requires a lessee to recognize a right-of-use asset and a lease liability at lease commencement for all leases, except for short term leases and leases of low value assets.

Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019

Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)

Lease Accounting

The Company initially measures the right-of-use asset at cost (present value of the future lease payments discounted using the discount rate implicit in the lease and initial cost) and subsequently measured at cost less accumulated depreciation and impairment losses adjusted for any remeasurement of the lease liability.

The Company initially measures the lease liability at the present value of the future lease payments discounted using the discount rate implicit in the lease. Subsequently, the lease liability is adjusted for interest and lease payments, as well as the impact of lease modifications, amongst others.

The Company has elected to apply the expedient allowed by IFRS 16 on its general requirements to short-term leases (i.e. one that does not include a purchase option and has a lease term at commencement date of 12 months or less) and leases of low value assets. The Comapny recognizes the lease payments associated with those leases as an expense on a straight-line basis over the lease term or another systematic basis if that basis is representative of the pattern of the lessee's benefits, similar to the current accounting for operating leases.

The Company has applied IFRS 16 using the modified retrospective approach and therefore the comparative information has not been restated. The Comapny has assessed that the impact of IFRS 16 is not material on opening retained earnings and as of reporting date has presented right-of-use assets within 'Property and equipment' and 'Finance lease liabilities' in the condensed interim statement of financial position.

Impacts on condensed interim financial information

As a result of initially applying IFRS 16, in relation to the leases that were previously classified as operating leases, the Company has recognized Rs. 132.27 million of right-of-use assets (included in property and equipment) and Rs. 134.22 million of lease liabilities as at 30 June 2019.

Also, in relation to those leases under IFRS 16, the Comapny has recognized depreciation and interest costs, instead of operating lease expense. During the six months period ended 30 June 2019, the Company recognized Rs. 45.429 million as depreciation expense and Rs. 4.658 million as interest cost.

IFRS 9

The amendments introduce two approaches for entities that apply IFRS 4 to reduce the impact of deferring effective dates with IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments: an overlay approach and a temporary exemption from applying IFRS 9. The Company has adopted for a temporary exemption from application of IFRS 9.

The effective date of the amendments permitting the temporary exemption is for annual periods beginning on or after 01 January 2018. The temporary exemption is available for annual reporting periods beginning before 01 January 2022 and will expire once IFRS 17 becomes effective.

5 Use of estimates and judgments

The preparation of this unconsolidated condensed interim financial information in conformity with the approved accounting standards requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the process of applying the Company's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

During preparation of this unconsolidated condensed interim financial information, the significant judgments made by the management in applying the Company's accounting policies and the key sources of estimation and uncertainty were the same as those that applied in the preceding audited annual published financial statements of the Company for the year ended 31 December 2018.

6 Functional and presentation currency

This unconsolidated condensed interim financial information is presented in Pakistani Rupees, which is also the Company’s functional currency.

7 Insurance and Financial risk management

The Company's financial risk management objectives and policies are consistent with those disclosed in the unconsolidated annual financial statements for the year ended 31 December 2018.

For six months period ended 30 June 2019


29ADAMJEE INSURANCE

30 June 2019Note

Rupees in thousand


31 December 2018

8 Property and equipment

Opening balance - net book value 2,332,540 2,132,353

Additions during the period / year 8.1 53,884 291,109

Right -of- use assets 177,701 -

Less:

Book value of disposals during the period / year 8.2 (19,793) (16,733)

Depreciation charged during the period / year (115,624) (126,232)

Exchange gain 57,688 52,043

(77,729) (90,922)

2,486,396 2,332,540

Capital work in progress 1,617,558 1,181,773

4,103,954 3,514,313

8.1 Additions during the period / year - cost

Buildings 467 170,852

Furniture and fixtures 1,408 37,242

Motor vehicles 46,580 70,594

Machinery and equipments 3,140 4,619

Computer and related accessories 2,289 7,802

53,884 291,109

8.2 Written down values of property and equipment

disposed off during the period / year

Furniture and fixtures 10,379 -

Motor vehicles 5,144 16,404

Machinery and equipments 4,270 309

Computer and related accessories - 20

19,793 16,733

9 Intangible assets

Opening balance - net book value 79,185 34,242

Additions during the year - 59,285

Less:

Amortization charged during the period / year (11,436) (22,983)

Exchange difference 7,101 8,641

(4,335) (14,342)

74,850 79,185

10 Investment in a subsidiary

Adamjee Life Assurance Company Limited - at cost 694,895 694,895

694,895 694,895



30 June 2019

Rupees in thousand


31 December 2018


Rupees in thousand

31 December 2018

CostImpairment/

provisionCarrying value

30 June 2019

CostImpairment/


11 Investment in equity securities

Available-for-sale

Related parties

Listed shares

Unlisted shared

Unrealized gain

Others

Listed shares

Unlisted shared

NIT Units

Mutual Funds

Unrealized gain

Total

8,396,663

550,726

8,947,389

7,345,164

925,360

161

440,724

8,711,409

17,658,798

(244,154)

-

(244,154)

(1,956,921)

-

-

-

(1,956,921)

(2,201,075)

8,152,509

550,726

8,703,235

381,033

9,084,268

5,388,243

925,360

161

440,724

6,754,488

1,468,980

8,223,468

17,307,736

8,396,663

300,726

8,697,389

7,274,808

925,360

161

389,312

8,589,641

17,287,030

(164,863)

-

(164,863)

(1,545,527)

-

-

-

(1,545,527)

(1,710,390)

8,231,800

300,726

8,532,526

1,295,559

9,828,085

5,729,281

925,360

161

389,312

7,044,114

1,812,888

8,857,002

18,685,087

12 Investment in debt securities

Held to maturity

Treasury Bills 381,663 378,029

381,663 378,029

13 Investments in Term DepositsHeld to maturity

Deposits maturing within 12 months

Inside Pakistan

- related parties 6,811 6,811 - others 26,447 25,066

33,258 31,877Outside Pakistan

- related parties 1,307,205 871,396 - others 4,527,894 3,411,149

5,835,099 4,282,5455,868,357 4,314,422

Deposits maturing aster 12 monthsInside Pakistan

- related parties 2,000 2,000 - others 39,691 39,691

41,691 41,691Outside Pakistan

- related parties - - - others - -

- -41,691 41,691

5,910,048 4,356,113


31ADAMJEE INSURANCE


13.1 These include fixed deposits amounting to Rs. 5,010,953 thousands (AED 115,000 thousands) [2018: Rs. 3,780,460 thousands (AED 100,000 thousands)] kept in accordance with the requirements of Insurance Regulations applicable to the UAE branches for the purpose of carrying on business in United Arab Emirates. These also include liens against cash deposits of Rs. 74,949 thousands (2018: Rs. 73,568 thousands) with banks in Pakistan essentially in respect of guarantees issued by the banks on behalf of the Company for claims under litigation filed against the Company and bid bond guarantees.


30 June 2019Note

Rupees in thousand


31 December 2018

14 Loans and other receivables - considered good

Rent receivable 5,726 4,968Receivable from related parties 14.1 26,286 16,508Accrued investment income 63,874 62,096Security deposits 55,910 53,759Advances to employees and suppliers 100,728 58,542Agent commission receivable 2,088 24,085Loans to employees 53,984 44,913Other receivables 18,655 11,004

327,251 275,875

15 Insurance / reinsurance receivables - unsecured and considered good

Due from insurance contract holders 8,044,597 6,820,415Provision for impairment of receivables from

insurance contract holders (798,249) (629,668)7,246,348 6,190,747

Due from other insurers / reinsurers 1,118,782 1,044,532Provision for impairment of due from other

insurers / reinsurers (201,302) (201,302)917,480 843,230

8,163,828 7,033,977

16 Prepayments

Prepaid reinsurance premium ceded 3,543,053 2,866,980Prepaid rent 4,587 8,367Prepaid miscellaneous expenses 207,466 172,959

3,755,106 3,048,306

17 Cash and bank


Inside Pakistan

Cash in hand 719 408Policy & Revenue stamps, Bond papers 3,549 5,895

4,268 6,303Outside PakistanCash in hand 655 -

4,923 6,303Cash at bank

Inside Pakistan

17.1

Current accounts 370,613 819,697Saving accounts 467,796 327,040

838,409 1,146,737Outside Pakistan

Current accounts 657,299 1,053,464Saving accounts 5,694 4,940

662,993 1,058,4041,501,402 2,205,141

1,506,325 2,211,444

14.1 This represents receivable from Adamjee Life Assurance Company Limited, subsidiary of the Company, in respect of cash value of corporate life policy obtained for key management personnel of the Company. Company is the beneficiary in respect of policies obtained for the employees.


12 Investment in debt securities

Held-to-maturity

Others

Term Finance Certificate 12.1 70,948 70,948


726,014 441,832

12.1 Term Finance Certificate 75 75 1,000,000 70,948 70,948

70,948 70,948

Face value

31 March 2019Note

Rupees in thousand


31 December 2018

31 March 2019

Rupees in thousand

31 December 2018

Rupees in thousand

31 March 2019 31 December 2018

No of certificates


17.1 Cash at bank includes an amount of Rs. 567,323 thousand (31 December 2018: Rs. 401,990 thousand) held with MCB Bank Limited, a related party of the Company.

30 June 2019

Rupees in thousand


31 December 2018

30 June 2019

Rupees in thousand

(Unaudited) (Unudited)

30 June 2018

18 Window takaful operations - operator's fund

AssetsQard-e-Hasna 146,460 146,804Cash and bank deposits 141,882 101,695Investments 31,048 29,930Current assets - others 45,400 66,947Property and equipment 14,565 16,185Intagible assets 20,483 20,633Total Assets 399,838 382,194

Total liabilities 206,407 229,819

Wakala fee 155,995 112,717Commission expense (46,721) (25,702)Management expenses (59,394) (42,932)Other income 8,363 1,770Investment income 1,345 166Other Expenses (1,729) (1,738)Profit before tax 57,859 44,281Provision for tax (16,785) (15,362)Profit from Window Takaful Operations 41,074 28,919

19 Reserves

Capital reserves

Reserves for exceptional losses 22,859 22,859Investment fluctuation reserves 3,764 3,764Exchange translation reserves 786,678 614,062Fair value reserve 1,313,490 2,207,015

Revenue reservesGeneral reserves 936,500 936,500

3,063,291 3,784,200

20 Other creditors and accruals

Agents commission payable 753,674 708,645Federal Excise Duty / Sales Tax / VAT 260,484 200,803Federal Insurance Fee 85,745 37,729Workers' welfare fund 459,024 432,246Tax deducted at source 79,776 58,052Accrued expenses 128,811 191,541Unpaid and Unclaimed Dividend 128,067 121,350Payable to Employees' Provident Fund 2,639 2,449Sundry creditors 448,052 452,917

2,346,272 2,205,732

30 June 2019

Rupees in thousand


31 December 2018

Details of total assets, total liabilities and segment disclosure of window takaful operations are stated in the annexed condensed interim financial information.

21 Contingencies and commitments

There has been no significant change in the contingencies and commitments since the date of preceding published annual financial statements for the year ended 31 December 2018.


33ADAMJEE INSURANCE


Wakala Fee 28,923

Commission expense (13,056) (5,748)

Management expense (21,051) (8,437)

Net Investment income 1,055 142

Profit from Window Takaful Operations 14,880

31 March 2019

Rupees in thousand

(Unaudited)

31 March 2018

(Unaudited)

52,862

19,810




Rupees in thousand

22 Net insurance premium

Written gross premium

Unearned premium reserve opening

Unearned premium reserve closing

Currency translation effect

Premium earned

Reinsurance premium ceded

Prepaid reinsurance premium opening

Prepaid reinsurance premium closing


Reinsurance expense

22.1 Net insurance premium - Business underwritten inside Pakistan




Premium earned




Reinsurance expense

22.2 Net insurance premium - Business underwritten outside Pakistan





Premium earned





Reinsurance expense

5,873,553

10,802,642

(11,566,014)

606,309

5,716,490

(2,051,234)

(3,254,355)

3,543,053

(7,019)

(1,769,555)

3,946,935

4,009,414

6,030,336

(6,550,695)

3,489,055

(2,000,953)

(3,220,928)

3,480,705

(1,741,176)

1,747,879

1,864,139

4,772,306

(5,015,319)

606,309

2,227,435

(50,281)

(33,427)

62,348

(7,019)

(28,379)

2,199,056

5,954,000

8,136,283

(9,751,460)

205,164

4,543,987

(2,194,005)

(1,759,176)

2,648,778

(6,027)

(1,310,430)

3,233,557

4,189,933

4,740,133

(5,983,865)

2,946,201

(2,112,473)

(1,705,069)

2,622,522

(1,195,020)

1,751,181

1,764,067

3,396,150

(3,767,595)

205,164

1,597,786

(81,532)

(54,107)

26,256

(6,027)

(115,410)

1,482,376

12,129,819

10,100,901

(11,566,014)

671,251

11,335,957

(4,302,427)

(2,866,980)

3,543,053

(7,471)

(3,633,825)

7,702,132

8,129,229

5,508,453

(6,550,695)

7,086,987

(4,187,650)

(2,838,973)

3,480,705

(3,545,918)

3,541,069

4,000,590

4,592,448

(5,015,319)

671,251

4,248,970

(114,777)

(28,007)

62,348

(7,471)

(87,907)

4,161,063

9,648,166

8,912,498

(9,751,460)

354,680

9,163,884

(3,071,924)

(2,349,147)

2,648,778

(10,839)

(2,783,132)

6,380,752

6,696,459

5,186,518

(5,983,865)

5,899,112

(2,932,933)

(2,079,920)

2,622,522

(2,390,331)

3,508,781

2,951,707

3,725,980

(3,767,595)

354,680

3,264,772

(138,991)

(269,227)

26,256

(10,839)

(392,801)

2,871,971


(Unaudited) (Unaudited)

20 Net Insurance Premium

Written Gross Premium 3,694,166 4,678,638

Add: Unearned premium reserve opening 8,912,498 7,349,511

Less: Unearned premium reserve closing 8,136,283 7,619,658

Add: Currency translation effect 149,516 1,220

Premium earned 4,619,897 4,409,711

Less: Reinsurance premium ceded 877,919 1,322,707

Add: Prepaid reinsurance premium opening 2,349,147 2,356,182

Less: Prepaid reinsurance premium closing 1,759,176 2,175,511

Add: Currency translation effect 4,812 141

Reinsurance expense 1,472,702 1,503,519

3,147,195 2,906,192

Quarter ended

31 March 2019

Rupees in thousand

Quarter ended

31 March 2018




Rupees in thousand

23 Net insurance claims expenses

Claims paidOutstanding claims including IBNR closingOutstanding claims including IBNR openingCurrency translation effectClaim expense

Reinsurance and other recoveries receivedReinsurance and other recoveries in respect

of outstanding claims closingReinsurance and other recoveries in respect

of outstanding claims openingCurrency translation effectReinsurance and other recoveries revenue

23.1 Net insurance claims expenses - Business underwritten inside Pakistan

Claims paidOutstanding claims including IBNR closingOutstanding claims including IBNR opening

Claim expense



of outstanding claims openingReinsurance and other recoveries revenue

23.2 Net insurance claims expenses - Business underwritten outside Pakistan

Claims paidOutstanding claims including IBNR closingOutstanding claims including IBNR openingCurrency translation effectClaim expense



of outstanding claims openingCurrency translation effectReinsurance and other recoveries revenue

3,489,49410,669,875

(10,193,465)(727,786)

3,238,118

(1,110,205)

(6,227,154)

6,178,315378,020

(781,024)2,457,094

1,441,6774,572,871

(4,823,914)

1,190,634

(468,627)

(3,046,533)

3,295,122(220,038)970,596

2,047,8176,097,004

(5,369,551)(727,786)

2,047,484

(641,578)

(3,180,621)

2,883,193378,020

(560,986)1,486,498

4,421,19710,636,120

(11,426,866)(253,776)

3,376,675

(2,565,556)

(6,844,083)

7,917,116136,155

(1,356,368)2,020,307

2,738,4535,586,679

(6,630,290)

1,694,842

(1,902,964)

(4,097,999)

5,205,590(795,373)899,469

1,682,7445,049,441

(4,796,576)(253,776)

1,681,833

(662,592)

(2,746,084)

2,711,526136,155

(560,995)1,120,838

7,207,71510,669,875

(10,461,975)(800,778)

6,614,837

(2,467,176)

(6,227,154)

6,397,245417,133

(1,879,952)4,734,885

3,472,1804,572,871

(5,386,215)

2,658,836

(1,477,221)

(3,046,533)

3,769,658(754,096)

1,904,740

3,735,5356,097,004

(5,075,760)(800,778)

3,956,001

(989,955)

(3,180,621)

2,627,587417,133

(1,125,856)2,830,145

7,228,62710,636,120

(11,485,744)(454,985)

5,924,018

(3,554,402)

(6,844,083)

8,056,450249,501

(2,092,534)3,831,484

4,169,4255,586,679

(7,084,282)

2,671,822

(2,413,220)

(4,097,999)

5,602,812(908,407)

1,763,415

3,059,2025,049,441

(4,401,462)(454,985)

3,252,196

(1,141,182)

(2,746,084)

2,453,638249,501

(1,184,127)2,068,069


35ADAMJEE INSURANCE



Three months period ended Six months period ended

Rupees in thousand

24 Net commission and other acquisition costs

Commission paid or payable

Deferred commission expense opening

Deferred commission expense closing


Net commission

Commission received or recoverable

Unearned reinsurance commission opening

Unearned reinsurance commission closing


Commision from reinsurance

24.1 Net commission and other acquisition costs - Business underwritten inside Pakistan




Net commission





24.2 Net commission and other acquisition costs - Business underwritten outside Pakistan





Net Commission






742,775

799,779

(1,075,282)

77,457

544,729

(173,192)

(195,759)

237,103

(603)

(132,451)

412,278

384,847

264,800

(417,247)

232,400

(171,507)

(191,511)

231,646

(131,372)

101,028

357,928

534,979

(658,035)

77,457

312,329

(1,685)

(4,248)

5,457

(603)

(1,079)

311,250

664,386

614,722

(855,030)

21,072

445,150

(167,526)

(195,862)

242,026

(294)

(121,656)

323,494

480,235

254,852

(471,649)

263,438

(165,838)

(188,720)

238,193

(116,365)

147,073

184,151

359,870

(383,381)

21,072

181,712

(1,688)

(7,142)

3,833

(294)

(5,291)

176,421

1,231,140

788,431

(1,075,282)

84,718

1,029,007

(262,247)

(221,371)

237,103

(661)

(247,176)

781,831

578,880

297,403

(417,247)

459,036

(257,151)

(218,690)

231,646

(244,195)

214,841

652,260

491,028

(658,035)

84,718

569,971

(5,096)

(2,681)

5,457

(661)

(2,981)

566,990

943,783

733,631

(855,030)

37,059

859,443

(257,857)

(240,306)

242,026

(665)

(256,802)

602,641

633,748

326,325

(471,649)

488,424

(254,023)

(227,726)

238,193

(243,556)

244,868

310,035

407,306

(383,381)

37,059

371,019

(3,834)

(12,580)

3,833

(665)

(13,246)

357,773



25 Management Expenses

Employee benefit costTravelling expensesAdvertisement & sales promotionPrinting & stationaryDepreciationAmortizationRent, rates & taxesLegal & professional chargesElectricity, gas & waterEntertainmentVehicle running expensesOffice repairs & maintenanceBank chargesPostages, telegrams & telephoneSupervision feeIT related costsTracking and monitoring chargesProvision for doubtful balancesRegulatory FeeMiscellaneous

26 Investment Income

Business underwritten Inside Pakistan

Available-for-saleIncome from equity securities

Dividend income- associated undertakings- others

Income from debt securities - Held to maturity

Return on Term Finance CertificatesProfit on Treasury Bills

Income from Term Deposits

Return on Term Deposits

Net realized gains on investments

Realized gains on- associated undertakings- others

Provision of impairment in value of 'available-for-sale' investments

Business underwritten Outside Pakistan

Available-for-saleIncome from equity securities

Dividend income - associated undertakings - others

Return on Term Deposits

Net investment income

436,52017,72012,503

7,11859,044

5,9411,274

37,12911,418

7,16025,571

9,87020,090

9,55415,26024,01751,79597,35238,86814,071

902,275

191,309134,428325,737

-11,62011,620

1,0821,082

-2,1082,108

340,547

(505,385)(164,838)

-15,42715,427

42,037

57,464(107,374)

416,32019,18517,576

8,43233,126

2,37623,32513,71510,613

4,9304,342

10,27715,623

7,43314,09320,51252,076

-14,969

9,566

698,489

191,50876,699

268,207

1,3655,9407,305

1,4951,495

-345,291345,291622,298

(108,698)513,600

---

18,333

18,333531,933

887,78933,50634,16114,723

115,62411,43614,48862,34321,58613,81149,61422,10728,39919,55832,00245,361

113,24497,35272,78722,068

1,711,959

382,618361,443744,061

-21,91021,910

1,0821,082

-2,5682,568

769,621

(490,685)278,936

-29,17029,170

73,416

102,586381,522

830,27531,46230,57015,50665,300

4,76645,21029,94218,95111,039

8,46318,52922,14519,97925,29740,193

105,574-

22,39416,257

1,361,852

382,619269,111651,730

2,71612,76715,483

3,4283,428

-449,506449,506

1,120,147

(71,686)1,048,461

---

30,059

30,0591,078,520



Rupees in thousand

37ADAMJEE INSURANCE


27 Other income

Return on bank balances

(Loss) / gain on sale of fixed assets

Return on loans to employee

Miscellaneous

28 Other expenses

Legal & professional charges - Other

Auditors' remuneration

Subscription Fee

Donations

Workers welfare fund

Others

29 Earnings per share - basic and diluted

There is no dilutive effect on the basic earnings per share which is based on:

Net profit aster tax for the period

Weighted average number of shares

Earnings (aster tax) per share

1,632

(8,101)

67

(535)

(6,937)

6,697

2,654

1,184

-

10,073

1,497

22,105

(122,383)

350,000,000

(0.35)

18,650

3,250

88

2,531

24,519

13,613

1,211

1,215

300

16,135

2,522

34,996

386,922

350,000,000

1.11

16,077

(3,909)

140

18,136

30,444

14,021

5,531

2,519

-

26,778

3,998

52,847

465,963

350,000,000

1.33

31,383

4,619

179

10,335

46,516

21,179

3,157

2,782

800

35,542

3,649

67,109

1,050,321

350,000,000

3.00



Rupees in thousand



Rupees in thousand

Number of shares

Rupees



30 Transactions with related parties

The Company has related party relationships with its associates, subsidiary company, employee retirement benefit plans, key management personnel and other parties. Transactions are entered into with such related parties for the issuance of policies to and disbursements of claims incurred by them and payments of rentals for the use of premises rented from them. There are no transactions with key management personnel other than those specified in their terms of employment.

Investment in related parties have been disclosed in note 10, 11 and 13 to the unconsolidated condensed interim financial information. Other transactions with related parties are summarized as follows:


i) Transactions

Subsidiary company

Premiums underwritten 13,753 12,372

Premiums received 11,707 12,199

Claims paid 5,490 3,391

Claims received 2,500 2,500

Premium paid 2,543 2,445

Rent paid 750 -

Rent / service charges received 517 -

Other related parties



Claims paid 314,925 397,584

Commission paid 52,015 26,907

Rent paid 4,930 2,413

Dividends received 391,050 191,309

Dividends paid 106,292 98,193

Income on bank deposits 20,803 13,332

Investments made 250,000 293,093

Fee / service charges paid 1,604 3,001

Charge in respect of gratuity expense 23,314 16,457

Contribution to Employees' Provident Fund 16,805 15,439

Compensation paid to Key

management personnel 656,890 557,260

ii) Period end balances

Subsidiary company

Balances receivable 28,722 16,892

Balances payable 1,881 2,085




Cash and bank balances including

Term Deposit Receipts 1,883,339 1,282,197

Payable to Staff Gratuity Fund 139,947 133,127

30 June 2019 30 June 2018


Rupees in thousand

30 June 2019

Rupees in thousand

(Unaudited)

(Unaudited)

(Audited)

(Unadited)

31 December 2018

Payable to Employees' Provident Fund 2,639 2,449

39ADAMJEE INSURANCE


31

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25,5

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31

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Pre

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(Inc

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,

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279

4,59

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7,53

2,72

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68

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(451

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(60,

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(145

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6,69

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6,69

6,45

92,

951,

707

9,64

8,16

6

Insu

ranc

e pr

emiu

m e

arne

d2,

401,

610

20,0

9743

2,92

215

,038

1,34

2,89

93,

218,

210

928,

738

5,59

179

2,94

35,

836

5,89

9,11

23,

264,

772

9,16

3,88

4

Insu

ranc

e pr

emiu

m c

eded

to

rein

sure

rs(1

,964

,566

)(1

2,69

4)(5

7,33

4)-

(20,

156)

(371

,591

)-

(5,4

28)

(348

,275

)(3

,088

)(2

,390

,331

)(3

92,8

01)

(2,7

83,1

32)

Net

insu

ranc

e pr

emiu

m43

7,04

47,

403

375,

588

15,0

381,

322,

743

2,84

6,61

992

8,73

816

344

4,66

82,

748

3,50

8,78

12,

871,

971

6,38

0,75

2

Com

mis

sion

inco

me

176,

229

3,67

336

3-

88,

446

--

66,9

561,

127

243,

556

13,2

4625

6,80

2

Net

und

erw

riti

ng in

com

e61

3,27

311

,076

375,

951

15,0

381,

322,

751

2,85

5,06

592

8,73

816

351

1,62

43,

875

3,75

2,33

72,

885,

217

6,63

7,55

4

Insu

ranc

e cl

aim

s(9

02,8

01)

340

(97,

703)

(592

)(6

66,6

12)

(3,2

47,1

00)

(802

,647

)(5

,093

)(2

02,0

59)

249

(2,6

71,8

22)

(3,2

52,1

96)

(5,9

24,0

18)

Insu

ranc

e cl

aim

reco

verie

s fr

om re

insu

rers

793,

543

(2,2

29)

(25,

081)

-52

,870

1,18

1,61

9-

4,92

387

,075

(186

)90

8,40

71,

184,

127

2,09

2,53

4

Net

cla

ims

(109

,258

)(1

,889

)(1

22,7

84)

(592

)(6

13,7

42)

(2,0

65,4

81)

(802

,647

)(1

70)

(114

,984

)63

(1,7

63,4

15)

(2,0

68,0

69)

(3,8

31,4

84)

Com

mis

sion

exp

ense

(212

,692

)(2

,530

)(6

0,40

6)(2

,466

)(1

03,0

70)

(364

,700

)(2

8,22

8)(7

49)

(84,

028)

(574

)(4

88,4

24)

(371

,019

)(8

59,4

43)

Man

agem

ent

expe

nses

(186

,391

)(4

15)

(124

,822

)(3

,012

)(4

80,0

97)

(367

,089

)(7

0,03

7)(2

,783

)(1

24,8

77)

(2,3

29)

(986

,224

)(3

75,6

28)

(1,3

61,8

52)

Net

insu

ranc

e cl

aim

s an

d ex

pens

es(5

08,3

41)

(4,8

34)

(308

,012

)(6

,070

)(1

,196

,909

)(2

,797

,270

)(9

00,9

12)

(3,7

02)

(323

,889

)(2

,840

)(3

,238

,063

)(2

,814

,716

)(6

,052

,779

)

Und

erw

riti

ng r

esul

t10

4,93

26,

242

67,9

398,

968

125,

842

57,7

9527

,826

(3,5

39)

187,

735

1,03

551

4,27

470

,501

584,

775

Net

inve

stm

ent

inco

me

1,04

8,46

130

,059

1,07

8,52

0

Ren

tal i

ncom

e5,

030

-5,

030

Oth

er in

com

e32

,838

13,6

7846

,516

Oth

er e

xpen

ses

(62,

456)

(4,6

53)

(67,

109)

Pro

fit fr

om W

indo

w T

akaf

ul O

pera

tions

44,2

81-

44,2

81

Pro

fit b

efor

e ta

x1,

582,

428

109,

585

1,69

2,01

3

Seg

men

t A

sset

s7,

344,

826

70,5

8565

2,69

112

,632

1,21

0,74

65,

236,

105

596,

098

43,8

841,

906,

664

12,4

0311

,711

,025

5,37

5,60

917

,086

,634

Una

lloca

ted

Ass

ets

--

--

--

--

--

24,8

02,2

175,

956,

243

30,7

58,4

60

36,5

13,2

4211

,331

,852

47,8

45,0

94

Seg

men

t Li

abili

ties

7,28

7,01

189

,828

695,

068

21,9

402,

592,

722

9,51

4,02

11,

341,

301

46,3

262,

301,

540

12,1

9114

,217

,642

9,68

4,30

623

,901

,948

Una

lloca

ted

Liab

ilitie

s-

--

--

--

--

-3,

547,

687

732,

101

4,27

9,78

8

17,7

65,3

2910

,416

,407

28,1

81,7

36

Six

mo

nth

pe

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d e

nd

ed

30

Ju

ne

20

18

Insid

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Pa

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tsid

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Rup

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s in t

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Fir

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pro

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tor

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To

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31

De

cem

be

r 2

01

8

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Pa

kis

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tsid

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s in t

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am

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41ADAMJEE INSURANCE


32 Fair value measurement of financial instruments

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Underlying the definition of fair value is the presumption that the company is a going concern and there is no intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.

A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis.

IFRS 13 'Fair Value Measurement' requires the company to classify fair value measurements in fair value hierarchy that reflects the significance of the inputs used in making the measurements of fair value. It has the following levels:

- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)

- Inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

- Inputs for the asset or liability that are not based on observable market data (that is, unadjusted) inputs (Level 3)

Transfer between levels of the fair value hierarchy are recognized at the end of the reporting period during which the changes have occurred.


11

11

12

18

14

13

15

16

17

18

20

18

14,830,126

3,172,505

-

31,048

-

-

-

-

-

-

-

-

18,033,679

-

-

-

-

-

-

-

-

-

327,251

-

8,163,828

5,897,373

329,781

3,755,106

-

226,908

18,700,247

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1,506,325

141,882

1,648,207

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

10,669,875

3,771,020

2,213,112

206,407

16,860,414

14,830,126

3,172,505

381,663

31,048

327,251

5,910,048

8,163,828

5,897,373

329,781

3,755,106

1,506,325

368,790

44,673,844

10,669,875

3,771,020

2,213,112

206,407

16,860,414

14,830,126

-

-

31,048

-

-

-

-

-

-

-

-

14,861,174

-

-

-

-

-

-

-

381,663

-

-

-

-

-

-

-

-

-

381,663

-

-

-

-

-

-

3,172,505

-

-

-

-

-

-

-

-

-

-

3,172,505

-

-

-

-

-

14,830,126

3,172,505

381,663

31,048

-

-

-

-

-

-

-

-

18,415,342

-

-

-

-

-

* The Company has not disclosed the fair value of these items because their carrying amounts are a reasonable approximation of fair value.

Financial assets - measured at fair value

Investment

Equity securities- qouted

Equity securities- unqouted

Debt securities

Financial assets - not measured at fair value

Loans and other receivables *

Investment - Term Deposits*

Insurance / reinsurance receivables

- unsecured and considered good *

Reinsurance recoveries against outstanding claims *

Salvage recoveries accrued *

Prepayments

Cash and bank *

Financial liabilities - not measured at fair value

Underwriting provisions:

Outstanding claims (including IBNR)*

Insurance / reinsurance payables *

Other creditors and accruals*

Other Assets of Window Takaful Operations -

Operator's Fund*

Total liabilities of Window Takaful Operations-

Operator's Fund*

Investments of Window Takaful Operations -

Operator's Fund

-

-

381,663

-

-

5,910,048

-

-

-

-

-

-

6,291,711

-

-

-

-

-

-

-

-

30 June 2019

Availablefor sale

Receivablesand other

financial assets

Cash andcash

equivalents

Otherfinancialliabilities

Total Level 1 Level 2 Level 3 TotalNote

Rupees in thousand

Held tomaturity



32.1 Fair value measurement of financial instruments




IFRS 13 'Fair Value Measurement' requires the company to classify fair value measurements in fair value hierarchy that reflects the significance of the inputs used in making the measurements of fair value. It has the following levels:







Investment

Equity securities- qouted

Equity securities- unqouted

Debt securities


Loans and other receivables *

Investment - Term Deposits*


- unsecured and considered good *



Prepayments *

Cash and bank *



Outstanding claims (including IBNR)*


Other creditors and accruals*

11

11

12

18

14

13

15

16

17

18

20

18

16,457,477

2,922,505

-

29,930

-

-

-

-

-

-

-

-

19,409,912

-

-

-

-

-

-

-

378,029

-

-

4,356,113

-

-

-

-

-

-

4,734,142

-

-

-

-

-

-

-

-

-

275,875

-

7,033,977

6,046,905

350,340

3,048,306

-

250,569

17,005,972

-

-

-

-

-

-

-

-

-

-

-

-

-

-

2,211,444

101,695

2,313,139

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

10,461,975

2,709,714

2,227,040

229,819

15,628,548

16,457,477

2,922,505

378,029

29,930

275,875

4,356,113

7,033,977

6,046,905

350,340

3,048,306

2,211,444

352,264

43,463,165

10,461,975

2,709,714

2,227,040

229,819

-

15,628,548

16,457,477

-

-

29,930

-

-

-

-

-

-

-

-

16,487,407

-

-

-

-

-

-

-

378,029

-

-

-

-

-

-

-

-

-

378,029

-

-

-

-

-

-

2,922,505

-

-

-

-

-

-

-

-

-

-

2,922,505

-

-

-

-

-

16,457,477

2,922,505

378,029

29,930

-

-

-

-

-

-

-

-

19,787,941

-

-

-

-

-

-

* The Company has not disclosed the fair value of these items because their carrying amounts are a reasonable approximation of fair value.


Operator's Fund


Operator's Fund*


Operator's Fund*

31 Deceber 2018

Availablefor sale

Receivablesand other

financial assets

Cash andcash

equivalents


Total Level 1 Level 2 Level 3 TotalNote

Rupees in thousand

Held tomaturity

43ADAMJEE INSURANCE

33 Date of authorization for issue

This unconsolidated condensed interim financial information was approved for issue on 23 August 2019 by the Board of Directors of the Company.

34 Non-adjusting events after statement of financial position date

The Board of Directors of the Company in their meeting held on 23 August 2019 proposed an interim cash dividend for the six month period ended 30 June 2019 @ 10% i.e. Rupee 1/- per share (30 June 2018 @ 10 % i.e. Rupee 1/- per share). This unconsolidated condensed interim financial information for the six month period ended 30 June 2019 does not include the effect of this appropriation which will be accounted for in the unconsolidated financial statements for the year ending 31 December 2019.

35 General

35.1 Corresponding figures have been rearranged and reclassified for better presentation, wherever considered necessary.

35.2 Figures have been rounded off to the nearest thousand rupees unless other wise stated.


Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director


45ADAMJEE INSURANCE

On behalf of the Board, We are pleased to present the consolidated condensed interim financial information of Adamjee Insurance Company Limited and its subsidiary, Adamjee Life Assurance Company Limited, for six months period ended 30 June 2019.

The following appropriation of profit has been recommended by the Board of Directors:

Directors’ Review to the members on Consolidated Condensed Interim Financial InformationFor six months period ended 30 June 2019

On Behalf of Board of Directors

Lahore: 23 August 2019 Managing Director &

Muhammad Ali Zeb

Chief Executive Officer


Profit before tax 1,749,805

Taxation (641,061)

Profit aster tax 1,108,744

Less: Profit attributable to non-controlling interest (15,026)

Profit attributable to ordinary shares 1,093,718

Unappropriated profit brought forward 11,955,927

Profit available for appropriation 13,049,645

Final dividend for the year ended 31 December 2018 @ 15% (Rupees 1.5/- per share)

31 December 2017 @ 10% (Rupee 1/- per share) (350,000)

Profit aster appropriation 12,699,645

Earnings per share - Basic and diluted 3.13

1,015,171

(465,194)

549,977

(21,608)

528,369

12,521,272

13,049,641

(525,000)

12,524,641

1.51

30 June 2019 30 June 2018

Rupees in thousand

30 June 2019 30 June 2018

Rupees


Director

(Unadited) (Unadited)

Restated

Restated


47ADAMJEE INSURANCE

CONSOLIDATEDCondensed Interim

Financial Informationfor the Six Months Ended

30 June 2019(Unaudited)


Consolidated Condensed Interim

As at 30 June 2019

Statement of Financial Position

ASSETSProperty and equipment 8 4,432,983 3,673,804Intangible assets 9 143,796 160,602Investment property 876,394 855,394Investments

Equity securities 10 30,027,066 32,359,408Debt securities 11 4,352,703 4,416,804Term deposits 12 13,878,048 15,426,113

Loan secured against life insurance policies 39,943 34,556Loans and other receivables 13 682,387 552,070Insurance / reinsurance receivables 14 8,243,527 7,162,077Reinsurance recoveries against outstanding claims 5,897,373 6,046,905Salvage recoveries accrued 329,781 350,340Deferred commission expense / acquisition cost 1,075,282 788,431Taxation - payment less provisions - 172,124Prepayments 15 3,815,261 3,116,455Cash and bank 16 8,622,181 5,523,097

82,416,725 80,638,180Total assets of Window Takaful Operations

- Operator's Fund (Holding Company) 17 399,838 382,194TOTAL ASSETS 82,816,563 81,020,374

EQUITY AND LIABILITIESCapital and reserves attributable to the Company's equity holders

Ordinary share capital 3,500,000 3,500,000Reserves 18 3,061,543 3,781,282Unappropriated Profit 12,524,641 12,521,272Equity attributable to equity holders of the parent 19,086,184 19,802,554Non-controlling interest 310,810 288,797Total Equity 19,396,994 20,091,351

LiabilitiesInsurance liabilities 31,637,615 31,730,169Underwriting provisions: Outstanding claims including IBNR 10,669,875 10,461,975 Unearned premium reserve 11,566,014 10,100,901 Unearned reinsurance commission 237,103 221,371Retirement benefits obligations 222,303 184,560Deferred taxation 680,857 985,157Premium received in advance 715,864 801,168Insurance / reinsurance payables 3,771,020 2,709,714Other creditors and accruals 19 2,730,278 2,812,103Lease liability 289,198 -Deposits and other payables 672,093 692,086Taxation - payment less provisions 20,942 -

31,575,547 28,969,035Total Liabilities of Window Takaful Operations

- Operator's Fund (Holding Company) 17 206,407 229,819TOTAL EQUITY AND LIABILITIES 82,816,563 81,020,374


The annexed notes from 1 to 31 form an integral part of this consolidated condensed interim financial information.

30 June 2019Note

Rupees in thousand


31 December 2018

Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director

Consolidated Condensed Interim Profit and Loss Account (Unaudited)For six months period ended 30 June 2019





Management expenses

Net change in insurance liabilities

(other than outstanding claims)



Net fair value loss on financial assets at fair value

through profit or loss

Net unrealized gains on investment property

Rental income

Other income

Other expenses


Finance cost

Profit from 'Window Takaful Operations' 17

Profit before tax

Income tax expense

(Loss) / profit aster tax

(Loss) / profit attributable to:

Equity holders of the parent

Non-controlling interest

(Loss) / earnings (aster tax) per share 25


6,570,287

(3,645,101)

(1,008,438)

(4,653,539)

(1,136,500)

729,640

1,509,888

363,005

(1,823,246)

-

1,611

86,144

(32,517)

104,885

(12,887)

31,425

123,423

(234,963)

(111,540)

(114,328)

2,788

(111,540)

(0.33)

6,537,261

(3,445,836)

(875,431)

(4,321,267)

(850,020)

(305,645)

1,060,329

1,084,282

(1,493,438)

-

2,515

50,301

(39,175)

664,814

-

24,471

689,285

(353,447)

335,838

348,978

(13,140)

335,838

Restated

1.00

12,832,970

(7,690,332)

(1,955,646)

(9,645,978)

(2,208,494)

(267,489)

711,009

1,765,985

(1,631,530)

21,000

3,189

174,041

(73,495)

970,199

(12,887)

57,859

1,015,171

(465,194)

549,977

528,369

21,608

549,977

1.51

12,168,397

(6,705,724)

(1,524,430)

(8,230,154)

(1,757,600)

(2,519,289)

(338,646)

2,554,059

(566,807)

47,019

5,030

89,144

(84,275)

1,705,524

-

44,281

1,749,805

(641,061)

1,108,744

1,093,718

15,026

1,108,744

Restated

3.13

Note

Restated Restated

30 June 2019 30 June 2018

For six months period ended30 June 2019 30 June 2018

Rupees in thousand

For three months period ended

Rupees

Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director

49ADAMJEE INSURANCE


Consolidated Condensed Interim Statement of Comprehensive Income (Unaudited)For six months period ended 30 June 2019

(Loss) / profit aster tax


Items that may be reclassified subsequently to profit and loss:

Unrealized diminution on 'available for sale' - net of tax

Unrealized diminution on 'available for sale'

of window takaful operations - net of tax

Effect of currency translation of investment in foreign branches - net

Total comprehensive (loss) / income for the period

Total comprehensive (loss) / income attributable to:

Equity holders of the parent



(111,540)

(1,031,446)

(441)

164,279

(979,148)

(981,853)

2,705

(979,148)

335,838

(1,366,472)

(982)

28,315

(1,003,301)

(985,719)

(17,582)

(1,003,301)

549,977

(891,932)

(18)

172,616

(169,357)

(191,370)

22,013

(169,357)

1,108,744

(582,277)

(442)

50,708

576,733

562,449

14,284

576,733

RestatedRestated

30 June 2019 30 June 2018


Rupees in thousand

For three months period ended

Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director

Consolidated Condensed Interim Cash Flow Statement (Unaudited)For six months period ended 30 June 2019



Insurance premium received 15,826,241

Reinsurance premiums paid (3,155,277)

Claims paid (10,346,900)

Surrenders paid (29,961)

Reinsurance and other recoveries received 3,485,396

Commissions paid (1,790,505)

Commissions received 257,857

Other underwriting payments (1,468,423)

Net cash flow from underwriting activities 2,778,428


Income tax paid (569,080)

Other operating payments (737,333)

Loans advanced (30,356)

Loans repayments received 26,882

Other operating receipts 10,513

Net cash used in other operating activities (1,299,374)

Total cash flow from all operating activities 1,479,054


Profit / return received on bank deposits 612,314

Income from treasury bills 20,050

Dividends received 925,201

Rentals received 6,380

Payment for investments/ investment properties (50,525,513)

Loan to / from policy holder 69

Proceds from investments/ investment properties 50,062,098

Fixed capital expenditure - operating fixed assets (457,046)

Fixed capital expenditure - intangible assets (2,468)

Proceeds from disposal of operating fixed assets 16,466

Total cash flow from investing activities 657,551


Payments against lease liabilities -

Dividends paid (315,785)

Total cash used in financing activities (315,785)

Net cash flow from all activities 1,820,820

Cash and cash equivalents at beginning of period 12,740,248

Cash and cash equivalents at end of period

16,590,784

(3,367,443)

(10,683,986)

(37,034)

2,492,697

(2,334,625)

262,247

(1,439,066)

1,483,574

(186,780)

(750,687)

(35,185)

27,751

22,895

(922,006)

561,568

1,047,087

16,428

1,040,693

2,431

(107,834,741)

(3,665)

106,287,799

(522,431)

-

16,704

50,305

(46,506)

(518,283)

(564,789)

47,084

16,543,097

16,590,181 14,561,068

30 June 2019

Rupees in thousand

30 June 2018


Restated

51ADAMJEE INSURANCE


Consolidated Condensed Interim Cash Flow Statement (Unaudited)For six months period ended 30 June 2019


Operating cash flows 561,568 1,479,055

Depreciation expense (168,678) (92,930)

Provision for gratuity (23,314) (16,029)

Finance cost (12,887) -

Other income - bank and term deposits 90,575 64,870

(Loss) / gain on disposal of operating fixed assets (3,955) 7,493

Provision for doubtful balances (97,352) -

Rental income 3,189 5,030

Decrease in assets other than cash 2,337,598 105,777

Increase in liabilities other than running finance (670,955) (1,581,032)

Increase in tax liabilities (421,503) (641,692)

Profit on sale of investments 284,626 1,260,749

Amortization expense (11,436) (7,881)

Increase in unearned premium (1,465,113) (838,962)

Decrease in loans and other receivables 7,435 3,474

Income taxes paid 142,392 495,905

Provision for impairment in value of 'available-for-sale' investments (490,685) (71,686)

Dividend and other income 407,128 1,355,779

Income from treasury bills 21,910 12,767

Income from TFCs - 2,716

Revaluation / devaluation of investment 1,575 (478,940)

Profit from liabilities Window Takaful Operations 57,859 44,281

Profit aster tax 549,977 1,108,744

Cash for the purposes of the cash flows statement consists of:

Cash and other equivalents 10,856 12,919

Current and other accounts 8,611,325 3,178,293

Term deposits 7,968,000 11,369,856

Total cash and cash equivalents 16,590,181 14,561,068


30 June 2019

Rupees in thousand

30 June 2018


Restated

Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director

Consolidated Condensed Interim Statement of Changes in Equity (Unaudited)For six months period ended 30 June 2019


Profit for the period 01 January 2018 to 30 June 2018

Other comprehensive income for the period 01 January 2018 to 30 June 2018

Total comprehensive income for the period

Transactions with owners of the Company

Final dividend for the year ended 31 December 2017 @ 10% (Rupee 1/- per share)

Balance as at 30 June 2018 - (Unaudited) - Restated

Profit for the period 01 July 2018 to 31 December 2018

Other comprehensive income for the period 01 July 2018 to 31 December 2018



Interim dividend for the year ended 30 June 2018 @ 10% (Rupee 1/- per share)


Profit for the period 01 January 2019 to 30 June 2019

Other comprehensive income for the period 01 January 2019 to 30 June 2019



Final dividend for the year ended 31 December 2018 @ 15% (Rupees 1.5/- per share)


3,500,000

-

-

-

-

3,500,000

-

-

-

-

3,500,000

-

-

-

-

3,500,000

22,859

-

-

-

-

22,859

-

-

-

-

22,859

-

-

-

-

22,859

3,764

-

-

-

-

3,764

-

-

-

-

3,764

-

-

-

-

3,764

467,100

-

50,708

50,708

-

517,808

-

96,254

96,254

-

614,062

-

172,616

172,616

-

786,678

3,573,724

-

(581,977)

(581,977)

-

2,991,747

-

(787,650)

(787,650)

-

2,204,097

-

(892,355)

(892,355)

-

1,311,742

936,500

-

-

-

-

936,500

-

-

-

-

936,500

-

-

-

-

936,500

11,955,927

1,093,718

-

1,093,718

(350,000)

12,699,645

186,944

(15,317)

171,627

(350,000)

12,521,272

528,369

-

528,369

(525,000)

12,524,641

20,459,874

1,093,718

(531,269)

562,449

(350,000)

20,672,323

186,944

(706,713)

(519,769)

(350,000)

19,802,554

528,369

(719,739)

(191,370)

(525,000)

19,086,184

273,635

15,026

(742)

14,284

-

287,919

(600)

1,478

878

-

288,797

21,608

405

22,013

-

310,810

20,733,509

1,108,744

(532,011)

576,733

(350,000)

20,960,242

186,344

(705,235)

(518,891)

(350,000)

20,091,351

549,977

(719,334)

(169,357)

(525,000)

19,396,994


Rupees in thousand

Capital reserveShare capital Revenue reserve

Issued,subscribed and paid up

Reserve for exceptional

losses

Investment fluctuation

reserve

Exchange translation

reserve

General reserve

Fair Value Reserve

Retained earnings

Total

Equity attributable to equity holders of the parent


Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director

53ADAMJEE INSURANCE


Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)

1 The group and its operations:

1.1 The group comprises of:

2019 2018 (Holding percentage)

Holding Company Adamjee Insurance Company Limited 100% 100%

Subsidiary Company Adamjee Life Assurance Company Limited 74.28% 74.28%

Adamjee Insurance Company Limited (Holding Company)

Adamjee Insurance Company Limited is a public limited company incorporated in Pakistan on 28 September 1960 under the Companies Act, 1913 (now the Companies Act, 2017). The Holding Company is listed on Pakistan Stock Exchange and is engaged in the general insurance business. The registered office of the Holding Company is situated at Tanveer Building, 27-C-III, MM Alam Road, Gulberg III, Lahore.

The Holding Company also operates branches in the United Arab Emirates (UAE) and the Export Processing Zone (EPZ).

The Holding Company was granted authorization on 23 December 2015 under Rule 6 of the Takaful Rules, 2012 to undertake Window Takaful Operations in respect of general takaful products by Securities and Exchange Commission of Pakistan (SECP) and commenced Window Takaful Operations on 01 January 2016.

Adamjee Life Assurance Company Limited (Subsidiary Company)

Adamjee Life Assurance Company Limited was incorporated in Pakistan on 4 August 2008 as a public unlisted company under the Companies Act, 2017. The Subsidiary Company started its operations from 24 April 2009. Registered office of the Subsidiary Company is at 1st floor, Islamabad Stock Exchange Towers, 55-B, Jinnah Avenue, Blue Area, Islamabad while its principal place of business is at 3rd Floor, The Forum, Khayaban-e-Jami, Clifton, Karachi. Adamjee Life Assurance Company Limited is a subsidiary of Adamjee Insurance Company Limited and an associate of IVM Intersurer B.V, each having a holding of 74.28% and 25.72% (2018: 74.28% and 25.72%) respectively in the share capital of the Subsidiary Company. IVM Intersurer B.V. has nominated Hollard Life Assurance Company Limited ("HLA"), an associate company of IVM Intersurer B.V. to act on its behalf in respect of matters relating to the Subsidiary Company. HLA is South Africa's largest private sector insurance company.

The Subsidiary Company is engaged in life assurance business carrying on non-participating business only. In accordance with the requirements of the Insurance Ordinance, 2000, the Subsidiary Company has established a shareholders' fund and the following statutory funds in respect of each class of its life assurance business:

- Conventional Business - Accident and Health Business - Individual Life Non-unitized Investment Linked Business - Individual Life Unit Linked Business - Individual Family Takaful Business

The Subsidiary Company was granted authorization on 4 May 2016 under Rule 6 of Takaful Rules, 2012 to undertake Takaful Window Operations in respect of family takaful products by the Securities and Exchange Commission of Pakistan (SECP) and subsequently the Subsidiary Company commenced Window Takaful Operations from 14 July 2016. The Subsidiary Company formed a Waqf Fund namely the Adamjee Life Assurance Company Limited - Window Takaful Operations Waqf Fund (here-in-after referred to as the Participant Takaful Fund (PTF)) on 22 December 2015 under a Waqf deed executed by the Subsidiary Company with the cede amount of Rs. 500,000. The cede money is required to be invested in Shariah compliant investments and any profit thereon can be utilized only to pay benefits to participants or defray PTF expenses. Waqf deed also governs the relationship of the Subsidiary Company and policyholders for the management of Takaful operations, investment of policyholders' funds and shareholders' funds as approved by the Shariah Advisor appointed by the Subsidiary Company.

IVM Intersurer B.V is in the process of selling its holding in the Subsidiary company to Holding Company after relevant legal formalities.



This consolidated condensed interim financial information of the Group for the period ended 30 June 2019 has been prepared in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards comprise of:

- International Accounting Standard 34 - "Interim Financial Reporting", issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and

- Provision of and directives issued under the Companies Act, 2017 and the Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012.

Where the provisions of and directives issued under the Companies Act, 2017 differ, the Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012 have been followed.

In terms of the requirements of the Takaful Rules, 2012, read with SECP Circular 25 of 2015 dated 09 July 2015, the assets, liabilities and profit and loss of the Operator Fund of the Window Takaful operations of the Holding Company have been presented as a single line item in the statement of financial position and profit and loss account of the Holding Company respectively. A separate set of condensed interim financial information of the Window Takaful operations has been annexed to this financial information as per the requirements of the Takaful Rules, 2012.

This consolidated condensed interim financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with annual financial statements of the Group for the year ended 31 December 2018. Comparative figures for consolidated condensed interim statement of financial position are stated from annual audited financial statements of the Group for the year ended 31 December 2018, whereas comparatives for interim profit and loss account, interim statement of comprehensive income, interim statement of changes in equity and interim cash flow statement and related notes are extracted from consolidated condensed interim financial information of the Group for the six months ended 30 June 2018.

This consolidated condensed interim financial information is unaudited and being submitted to the shareholders as required under Section 237 of the Companies Act, 2017 and the listing regulations of Pakistan Stock Exchange Limited.


This consolidated condensed interim financial information has been prepared under historical cost convention except for certain foreign currency translation adjustments, certain financial instruments carried at fair value, and defined benefit obligations under employee benefits carried at present value. All transactions reflected in this financial information are on accrual basis except for those reflected in cash flow statement.


The accounting policies and the methods of computation adopted in the preparation of the consolidated condensed interim financial information are same as those applied in the preparation of annual audited financial statements for the year ended 31 December 2018.

4.1 Standards, amendments or interpretations

The new and revised relevant IFRSs effective in the current period had no significant impact on the amounts reported and disclosures in these condensed interim financial information except the following:

IFRS 16

The Group has adopted IFRS 16 'Leases', issued in January 2016, with the date of initial application on 01 January 2019. IFRS 16 introduces significant changes to lessee accounting. It removes the distinction between operating and finance leases under IAS 17 and requires a lessee to recognize a right-of-use asset and a lease liability at lease commencement for all leases, except for short term leases and leases of low value assets.

Lease Accounting

The Group initially measures the right-of-use asset at cost (present value of the future lease payments discounted using the

Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019

55ADAMJEE INSURANCE


discount rate implicit in the lease and initial cost) and subsequently measured at cost less accumulated depreciation and impairment losses adjusted for any remeasurement of the lease liability.

The Group initially measures the lease liability at the present value of the future lease payments discounted using the discount rate implicit in the lease. Subsequently, the lease liability is adjusted for interest and lease payments, as well as the impact of lease modifications, amongst others.

The Group has elected to apply the expedient allowed by IFRS 16 on its general requirements to short-term leases (i.e. one that does not include a purchase option and has a lease term at commencement date of 12 months or less) and leases of low value assets. The Group recognizes the lease payments associated with those leases as an expense on a straight-line basis over the lease term or another systematic basis if that basis is representative of the pattern of the lessee's benefits, similar to the current accounting for operating leases.

The Group has applied IFRS 16 using the modified retrospective approach and therefore the comparative information has not been restated. The Group has assessed that the impact of IFRS 16 is not material on opening retained earnings and as of reporting date has presented right-of-use assets within 'Property and equipment' and 'Finance lease liabilities' in the condensed interim statement of financial position.

Impacts on condensed interim financial information

As a result of initially applying IFRS 16, in relation to the leases that were previously classified as operating leases, the Group has recognized Rs. 295.23 million of right-of-use assets (included in property and equipment) and Rs. 289.20 million of lease liabilities as at 30 June 2019.

Also, in relation to those leases under IFRS 16, the Group has recognized depreciation and interest costs, instead of operating lease expense. During the six months period ended 30 June 2019, the Group recognized Rs. 60.69 million as depreciation expense and Rs. 8.99 million as interest cost.

IFRS 9

The amendments introduce two approaches for entities that apply IFRS 4 to reduce the impact of deferring effective dates with IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments: an overlay approach and a temporary exemption from applying IFRS 9. The Group has adopted for a temporary exemption from application of IFRS 9.

The effective date of the amendments permitting the temporary exemption is for annual periods beginning on or after 01 January 2018. The temporary exemption is available for annual reporting periods beginning before 01 January 2022 and will expire once IFRS 17 becomes effective.


The preparation of this consolidated condensed interim financial information in conformity with the approved accounting standards requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the process of applying the Group's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.


During preparation of this consolidated condensed interim financial information, the significant judgments made by the management in applying the Group's accounting policies and the key sources of estimation and uncertainty were the same as those that applied in the preceding audited annual published financial statements of the Group for the year ended 31 December 2018.

6 Functional and presentation currency

This consolidated condensed interim financial information is presented in Pakistani Rupees, which is also the Group’s functional currency.

7 Insurance and Financial risk management

The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated annual financial statements for the year ended 31 December 2018.




Opening balance - net book value

Additions during the period / year 8.1

Right -of- use assets -

Less:

Book value of disposals during the period / year 8.2

Depreciation charged during the period / year

Exchange gain

Capital work in progress

8.1 Additions during the period / year - cost

Buildings

Furniture and fixtures

Motor vehicles

Machinery and equipment

Computer and related accessories

Leasehold Improvements

8.2 Written down values of property and equipment

disposed off during the period / year

Furniture and fixtures

Motor vehicles

Machinery and equipment

Computer and related accessories -

9 Intangible assets

Opening balance - net book value

Additions during the year -

Less:

Amortization charged during the period / year

Exchange gain

(20,658)

(156,205)

(119,175)

(23,907)

(16,806)

(18,654)

(173,636)

(140,247)

(41,126)

(32,485)

2,273,084

348,751

52,043

2,481,588

1,192,216

3,673,804

170,852

38,889

70,594

6,171

59,474

2,771

348,751

39

18,060

371

184

18,654

97,760

95,327

8,641

160,602

2,481,588

71,811

355,923

57,688

2,790,147

1,642,836

4,432,983

467

4,779

53,937

6,332

3,543

2,753

71,811

10,398

5,990

4,270

20,658

160,602

7,101

143,796


30 June 2019

Rupees in thousand

31 December 2018Note

57ADAMJEE INSURANCE



Investment in equity securities

Fair value through profit and loss

Total - fair value through profit and loss

8,859,290

550,726

9,410,016

6,900,463

925,360

161

440,724

8,266,708

17,676,724

1,634,941

4,182,896

5,817,837

10,014,321

847,371

10,861,692

16,679,529

34,356,253

(261,128)

-

(261,128)

(1,939,947)

-

-

-

(1,939,947)

(2,201,075)

-

-

-

-

-

-

-

(2,201,075)

8,598,162

550,726

9,148,888

972,487

10,121,375

4,960,516

925,360

161

440,724

6,326,761

878,122

7,204,883

17,326,258

1,634,941

4,182,896

5,817,837

(271,627)

5,546,210

10,014,321

847,371

10,861,692

(3,707,094)

7,154,598

12,700,808

30,027,066

8,423,580

300,726

8,724,306

7,268,843

925,360

161

389,312

8,583,676

17,307,982

1,250,208

3,651,823

4,902,031

10,864,063

286,805

11,150,868

16,052,899

33,360,881

(164,863)

-

(164,863)

(1,545,527)

-

-

-

(1,545,527)

(1,710,390)

-

-

-

-

-

-

-

(1,710,390)

8,258,717

300,726

8,559,443

1,294,754

9,854,197

5,723,316

925,360

161

389,312

7,038,149

1,813,201

8,851,350

18,705,547

1,250,208

3,651,823

4,902,031

(374,786)

4,527,245

10,864,063

286,805

11,150,868

(2,024,252)

9,126,616

13,653,861

32,359,408

Rupees in thousand

31 December 2018 (Audited)

CostImpairment/


30 June 2019 (Unadited)

CostImpairment/


10

Available-for-sale

Related parties

Listed shares

Unlisted shares

Unrealized gain

Others

Listed shares

Unlisted shared

NIT Units

Mutual Funds

Unrealized gain

Total - available for sale

Related parties

Listed shares

Mutual Funds

Unrealized loss

Others

Listed shares

Mutual Funds

Unrealized loss

Grand Total

59ADAMJEE INSURANCE



30 June 2019

Rupees in thousand


11 Investments in debt securities

Held to maturity


381,663 378,029

Available for sale


Pakistan Investment Bonds 179,447 244,884

441,399 434,795

Deficit on revaluation (2,451) (7,535)

438,948 427,260

Fair value through profit and loss

Term Finance Certificate 1,508,730 1,441,778

Advance against purchase of term finance certificate - 350,000

Corporate sukuks 1,516,143 1,032,170

Ijarah sukuks - 32,053


Pakistan Investment Bonds 50,464 352,204

3,533,010 3,619,459

Deficit on revaluation (918) (7,944)

3,532,092 3,611,515

4,352,703 4,416,804

12 Investments in Term Deposits

Held to maturity

Deposits maturing within 12 months

Inside Pakistan

- related parties 26,811 366,811

- others 7,974,447 10,735,066

8,001,258 11,101,877Outside Pakistan

- related parties 1,307,205 871,396

- others 4,527,894 3,411,149

5,835,099 4,282,545

Deposits maturing aster 12 months 13,836,357 15,384,422

Inside Pakistan

- related parties 2,000 2,000

- others 39,691 39,691

41,691 41,691

Outside Pakistan

- related parties - -

- others - -

- -

41,691 41,691

12.1 13,878,048 15,426,113

12.1 These include fixed deposits amounting to Rs. 5,010,953 thousands (AED 115,000 thousands) [2018: Rs. 3,780,460 thousands (AED 100,000 thousands)] kept in accordance with the requirements of Insurance Regulations applicable to the UAE branches of the Holding Company for the purpose of carrying on business in United Arab Emirates. These also include liens against cash deposits of Rs. 74,949 thousands (2018: Rs. 73,568 thousands) with banks in Pakistan essentially in respect of guarantees issued by the banks on behalf of the Holding Company for claims under litigation filed against the Holding Company and bid bond guarantees.




Rent receivable 5,726 4,968

Receivable from related parties 802 2,500

Accrued investment income 216,815 205,130

Security deposits 86,598 79,222

Advances to employees and suppliers 111,239 70,835

Agent commission receivable 2,088 24,085

Loans to employees 61,201 55,724

Receivable against the sale of investment 152,859 98,754

Other receivables 45,059 10,852

682,387 552,070

14 Insurance / reinsurance receivables - unsecured and considered good

Due from insurance contract holders 8,085,440 6,854,237

Provision for impairment of receivables from

insurance contract holders (798,249) (629,668)

7,287,191 6,224,569

Due from other insurers / other reinsurers 1,157,638 1,138,810

Provision for impairment of due from other

insurers / reinsurers (201,302) (201,302)

956,336 937,508

8,243,527 7,162,077

15 Prepayments

Prepaid reinsurance premium ceded 3,543,053 2,866,980

Prepaid rent 22,698 56,540

Prepaid miscellaneous expenses 249,510 192,935

3,815,261 3,116,455

16 Cash and bank


Inside Pakistan

Cash in hand 1,023 693

Policy & Revenue stamps, Bond papers 9,178 15,713

10,201 16,406

Outside Pakistan

Cash in hand 655 -

10,856 16,406

Cash at bank

Inside Pakistan 16.1

Current accounts 413,491 929,837

Savings accounts 7,534,841 3,518,450

7,948,332 4,448,287

Outside Pakistan

Current accounts 657,299 1,053,464

Savings accounts 5,694 4,940

662,993 1,058,404

8,611,325 5,506,691

8,622,181 5,523,097


30 June 2019

Rupees in thousand


16.1 Cash at bank includes an amount of Rs. 1,491,592 thousands (31 December 2018: Rs. 2,203,566 thousands) held with MCB Bank Limited, a related party of the Group.




Holding Company

Contingencies and commitments

There has been no significant change in the contingencies and commitments since the date of preceding published annual financial statements of the Holding Company for the year ended 31 December 2018.

Subsidiary Company

This represents various cases initiated against the Subsidiary Company concerning policyholder claims referred to Court, Federal Insurance Mohtasib and Small Dispute Resolution Committee rejected by the Subsidiary Company on different grounds. However, the management believes that no significant liability is likely to occur in these cases.

Sales tax imposed on premium from life insurance business was exempt up to 30 June 2018. However further exemption on this had not been given and the matter was also raised with Sindh Revenue Board (SRB). The matter for the renewal of the exemption was taken up at the collective level of the Insurance Association of Pakistan with the SRB through its consultants. The discussions on the matter has been conducive and the management is hopeful based on the consultant’s positive feedback, that it will be concluded in favor of the industry. Representation from the SECP Commissioner level has also been made to Chairman, Sindh Board of Revenue, to help enable a favorable outcome. In view of the fact that the matter is still under the process of review, the Subsidiary Company and other life insurance companies carrying out life insurance business have not yet billed their customers for SST for the period from 01 July 2018 to 30 June 2019 on premium from life insurance coverage.

There is also an ambiguity in the Sind Sales Tax on Services Act , 2011 and the Rules framed there under about whether the sales tax is intended to be charged on total gross premium or on the premium charged on the actual risk covered.

The aggregate amount of sales tax not yet billed based on the total gross amount of premium collected during the period from July 1, 2018 to June 30, 2019 is Rs. 952 million whereas sales tax not yet billed based on premium charged only on risk covered (in the shape of mortality charges) during the same period works out to Rs. 99 million.

Commitments

Commitments in respect of ljarah rentals payable in future period as at June 30, 2019 amounted to Rs. 60.49 million (Dec 31, 2018: Rs. 40.61 million) for vehicles.

Contingencies

Claims against the Subsidiary Company not acknowledged as debt 25,186 26,014

Number of cases 44 43


30 June 2019

Rupees in thousand

31 December 2018

Not later than one year 16,505 12,071

Later than one year and not later than five years 43,986 28,542

60,491 40,613


30 June 2019

Rupees in thousand

31 December 2018

63ADAMJEE INSURANCE


21 Net insurance premium

Holding Company





Premium earned





Reinsurance expense

21.1 & 21.2

Subsidiary Company

Regular premium / contributions

individual policies 21.3- first year

- second year renewal

- subsequent years renewal

Single premium / contributions

individual policies 21.3Group policies without cash values

Less: reinsurance premiums /

retakaful contributions ceded

On individual life first year business

On individual life second year business

On individual life subsequent

renewal business

On single premium individual policies

On group policies

21.1 Net insurance premium - Business underwritten inside Pakistan




Premium earned




Reinsurance expense

5,954,000

8,136,283

205,164

4,543,987

2,648,778

3,233,557

1,323,223

3,365,826

-

3,303,704

6,537,261

4,189,933

4,740,133

2,946,201

2,622,522

(9,751,460)

(2,194,005)

(1,759,176)

(6,027)

(1,310,430)

603,882

395,368

959,667

83,686

(8,630)

(13,154)

(24,700)

(15,638)

(62,122)

(5,983,865)

(2,112,473)

(1,705,069)

(1,195,020)

1,751,181

30 June 2019 30 June 2018


Rupees in thousand

For three months period endedNote

9,648,166

8,912,498

354,680

9,163,884

2,648,778

6,380,752

1,159,137

867,629

1,663,319

2,049,620

243,566

5,983,271

-

5,787,645

12,168,397

6,696,459

5,186,518

5,899,112

2,622,522

3,508,781

(9,751,460)

(3,071,924)

(2,349,147)

(10,839)

(2,783,132)

(20,467)

(24,531)

(44,630)

(105,998)

(195,626)

(5,983,865)

(2,932,933)

(2,079,920)

(2,390,331)

-

12,129,819

10,100,901

671,251

11,335,957

3,543,053

7,702,132

1,546,577

951,288

2,119,718

506,186

247,468

5,371,237

5,130,838

12,832,970

8,129,229

5,508,453

7,086,987

3,480,705

3,541,069

(11,566,014)

(4,302,427)

(2,866,980)

(7,471)

(3,633,825)

(23,382)

(28,387)

(70,267)

(118,363)

(240,399)

(6,550,695)

(4,187,650)

(2,838,973)

(3,545,918)

-

5,873,553

10,802,642

606,309

5,716,490

3,543,053

3,946,935

814,841

472,941

1,132,601

196,796

106,102

2,723,281

2,623,352

6,570,287

4,009,414

6,030,336

3,489,055

3,480,705

1,747,879

(11,566,014)

(2,051,234)

(3,254,355)

(7,019)

(1,769,555)

(14,909)

(12,112)

(40,599)

(32,309)

(99,929)

(6,550,695)

(2,000,953)

(3,220,928)

(1,741,176)

Restated Restated



Restated Restated

30 June 2019 30 June 2018


Rupees in thousand


21.2 Net insurance premium - Business underwritten outside Pakistan

Written gross premiumUnearned premium reserve openingUnearned premium reserve closingCurrency translation effect

Premium earned

Reinsurance premium cededPrepaid reinsurance premium openingPrepaid reinsurance premium closingCurrency translation effect

Reinsurance expense

1,864,1394,772,306

(5,015,319)606,309

2,227,435

(50,281)(33,427)62,348(7,019)

(28,379)

2,199,056

1,764,0673,396,150

(3,767,595)205,164

1,597,786

(81,532)(54,107)26,256(6,027)

(115,410)

1,482,376

4,000,5904,592,448

(5,015,319)671,251

4,248,970

(114,777)(28,007)62,348(7,471)

(87,907)

4,161,063

2,951,7073,725,980

(3,767,595)354,680

3,264,772

(138,991)(269,227)

26,256(10,839)

(392,801)

2,871,971

21.3 Individual policies are those underwritten on an individual basis.

22.1 & 22.2

3,489,49410,669,875

(10,193,465)(727,786)

3,238,118

(1,110,205)

(6,227,154)

6,178,315378,020

(781,024)

2,457,094

60,051(800)

90,9621,054,951

1,205,164

76,230(6,500)

827

70,557

1,919

1,277,640

36,08653,547

89,633

1,188,007

4,421,19710,636,120

(11,426,866)(253,776)

3,376,675

(2,565,556)

(6,844,083)

7,917,116136,155

(1,356,368)

2,020,307

17,671900

280,9811,087,326

1,386,878

118,52217,832

-

136,354

3,285

1,526,517

798100,190

100,988

1,425,529

7,207,71510,669,875

(10,461,975)(800,778)

6,614,837

(2,467,176)

(6,227,154)

6,397,245417,133

(1,879,952)

4,734,885

133,4756,275

423,5232,338,202

2,901,475

232,824(22,671)10,492

220,645

3,885

3,126,005

20,122150,436

170,558

2,955,447

7,228,62710,636,120

(11,485,744)(454,985)

5,924,018

(3,554,402)

(6,844,083)

8,056,450249,501

(2,092,534)

3,831,484

124,289900

547,8352,123,993

2,797,017

256,06525,301

4,291

285,657

6,414

3,089,088

36,057178,791

214,848

2,874,240

22 Net insurance claims expense

Holding Company

Claims paidOutstanding claims including IBNR closingOutstanding claims including IBNR openingCurrency translation effect

Claims expense

Reinsurance and other recoveries receivedReinsurance and other recoveries in respect of outstanding claims closingReinsurance and other recoveries in respect of outstanding claims openingCurrency translation effect

Reinsurance and other recoveries revenue

Subsidiary Company

Gross claimsClaims under individual policies - by death - by insured event other than death - by maturity - by surrender

Total gross individual policy claims

Claims under group policies - by death - by insured event other than death - experience refund

Total gross group policy claims

Claim investigation fees

Total gross claims

Less: Reinsurance recoveries - on individual claims - on group claims

3,645,101 3,445,836 7,690,332 6,705,724

65ADAMJEE INSURANCE


Net insurance claims expense - Business underwritten inside Pakistan

1,441,677

4,572,871

(4,823,914)

1,190,634

(468,627)

(3,046,533)

3,295,122

(220,038)

970,596

2,738,453

5,586,679

(6,630,290)

1,694,842

(1,902,964)

(4,097,999)

5,205,590

(795,373)

899,469

3,472,180

4,572,871

(5,386,215)

2,658,836

(1,477,221)

(3,046,533)

3,769,658

(754,096)

1,904,740

4,169,425

5,586,679

(7,084,282)

2,671,822

(2,413,220)

(4,097,999)

5,602,812

(908,407)

1,763,415

22.1

Claim paid

Outstanding claims including IBNR closing

Outstanding claims including IBNR opening

Claim expense


Reinsurance and other recoveries in respect

of outstanding claims closing


of outstanding claims opening


Restated Restated

30 June 2019 30 June 2018


Rupees in thousand


Claim expense



of outstanding claims closing


of outstanding claims opening



Net insurance claims expense - Business underwritten outside Pakistan

2,047,484

(641,578)

(3,180,621)

2,883,193

378,020

(560,986)

1,486,498

2,047,817

6,097,004

(5,369,551)

(727,786)

1,681,833

(662,592)

(2,746,084)

2,711,526

136,155

(560,995)

1,120,838

1,682,744

5,049,441

(4,796,576)

(253,776)

3,956,001

(989,955)

(3,180,621)

2,627,587

417,133

(1,125,856)

2,830,145

3,735,535

6,097,004

(5,075,760)

(800,778)

3,252,196

(1,141,182)

(2,746,084)

2,453,638

249,501

(1,184,127)

2,068,069

3,059,202

5,049,441

(4,401,462)

(454,985)

22.2

Claim Paid






Restated Restated

30 June 2019 30 June 2018


Rupees in thousand


Net commission and other acquisition costs

Holding Company





Net commission





Commission from reinsurance

23.1 & 23.2

Subsidiary Company

Remuneration to insurance / takaful

intermediaries on individual policies:

- Commission on first year contribution / premium

- Commission on second year contribution / premium

- Commission on subsequent years renewal contribution / premium

- Commission on single contribution / premium

- Other benefits to insurance intermediaries

Remuneration to insurance intermediaries

on group policies:

- Commission

- Other benefits to insurance intermediaries

Other acquisition costs

23.1 Net commission and other acquisition costs - Business underwritten inside Pakistan




Net commission





742,775

799,779

(1,075,282)

77,457

544,729

(173,192)

(195,759)

237,103

(603)

(132,451)

412,278

355,476

29,615

30,725

4,691

79,491

499,998

7,454

1,215

8,669

87,493

596,160

1,008,438

384,847

264,800

(417,247)

232,400

(171,507)

(191,511)

231,646

(131,372)

101,028

664,386

614,722

(855,030)

21,072

445,150

(167,526)

(195,862)

242,026

(294)

(121,656)

323,494

271,229

20,713

21,870

26,418

138,142

478,372

9,362

3,904

13,266

60,299

551,937

875,431

480,235

254,852

(471,649)

263,438

(165,838)

(188,720)

238,193

(116,365)

147,073

1,231,140

788,431

(1,075,282)

84,718

1,029,007

(262,247)

(221,371)

237,103

(661)

(247,176)

781,831

695,630

56,353

55,175

11,168

158,182

976,508

17,652

2,673

20,325

176,982

1,173,815

1,955,646

578,880

297,403

(417,247)

459,036

(257,151)

(218,690)

231,646

(244,195)

214,841

943,783

733,631

(855,030)

37,059

859,443

(257,857)

(240,306)

242,026

(665)

(256,802)

602,641

522,676

45,311

38,190

42,978

137,562

786,717

16,046

3,904

19,950

115,122

921,789

1,524,430

633,748

326,325

(471,649)

488,424

(254,023)

(227,726)

238,193

(243,556)

244,868

23

67ADAMJEE INSURANCE


Restated Restated

30 June 2019 30 June 2018


Rupees in thousand


23.2 Net commission and other acquisition costs - Business underwritten outside Pakistan










Net commission

357,928

534,979

(658,035)

77,457

312,329

310,035

407,306

(383,381)

37,059

371,019

(1,685)

(4,248)

5,457

(603)

(1,079)

311,250

184,151

359,870

(383,381)

21,072

181,712

(1,688)

(7,142)

3,833

(294)

(5,291)

176,421

652,260

491,028

(658,035)

84,718

569,971

(5,096)

(2,681)

5,457

(661)

(2,981)

566,990

(3,834)

(12,580)

3,833

(665)

(13,246)

357,773

Business underwritten Inside Pakistan

Income from equity securities

Available for sale

- associated undertakings

Listed equity shares

Income from debt securities

Return on Term Finance Certificates

Return on Pakistan Investment Bonds

Return on government securities

Profit on Treasury Bills

Fair value through profit & loss


Return on other fixed income securities

Available for sale


Income from term deposits

24 Investment income

24.1

24.1.1

Dividend income

- others

Held for trading

24.1.2

Held to maturity

24.1.3

Held to maturity

-

382,619

269,610

652,229

130,178

2,716

-

235,261

12,767

250,744

75,714

75,714

11,572

338,030

214,500

191,175

134,936

326,111

1128,775

-

-

182,492

11,620

194,112

-

89,073

89,073

1,853

285,038

147,930

454,886

191,508

86,891

278,399

45,093

1,365

-

99,786

5,940

107,091

-

44,559

44,559

7,595

159,245

123,407

323,492

-

382,618

361,809

744,427

248,627

-

-

322,957

21,910

344,867

171,169

171,169

10,903

526,939

349,465

993,054 782,047



Restated Restated

30 June 2019 30 June 2018


Rupees in thousand


Business underwritten Outside Pakistan

Income from equity securities

Available for sale

- associated undertakings

24.2

24.2.1

Dividend income

- others

24.2.2Income from term deposits

Held to maturity

Total investment income

-

15,427

15,427

42,037

57,464

363,005

-

-

-

18,236

18,236

1,084,282

-

29,170

29,170

73,416

102,586

1,765,985

-

-

-

30,059

30,059

2,554,059

Net realized gains / (losses) on investments

Available for sale

- Equity securities

- Government securities

Realized gains/(losses) on:

- Equity securities

- Fixed income securities

- Government securities

Provision of impairment in

'available-for-sale' investments

24.1.4

Realized gains on

Held for trading

2,108

2,669

4,777

(56,684)

-

(25,021)

(81,705)

810,926

(505,385)

305,541

348,290

(19)

348,271

220,588

2,047

(2,306)

220,329

1,174,744

(108,698)

1,066,046

2,568

2,645

5,213

305,398

-

(25,985)

279,413

2,154,084

(490,685)

1,663,399

455,691

(19)

455,672

807,062

832

(2,817)

805,077

2,595,686

(71,686)

2,524,000

Earnings per share - basic and diluted

There is no dilutive effect on the basic earnings per share which is based on:

(Loss) profit aster tax for the period attributable to ordinary shareholders

Weighted average number of ordinary shares outstanding

(Loss) earnings per share - basic and diluted

25

1,093,718

350,000,000

3.13

528,369

350,000,000

1.51

348,978

350,000,000

1.00

(114,328)

350,000,000

(0.33)

Number of shares

Rupees

Restated Restated

Rupees

Restated Restated

69ADAMJEE INSURANCE



The Group has related party relationships with its associates, employee retirement benefit plans, key management personnel and other parties. Transactions are entered into with such related parties for the issuance of policies to and disbursements of claims incurred by them and payments of rentals for the use of premises rented from them. There are no transactions with key management personnel other than those specified in their terms of employment.

Investment in related parties have been disclosed in note 10 & 12 to the consolidated condensed interim financial information. Other transactions with related parties are summarized as follows:

Holding Company

i) Transactions



Claims paid 314,925 397,584

Commission Paid 52,015 26,907

Rent paid 4,930 2,413

Dividends received 391,050 191,309

Dividends paid 106,292 98,193

Income on bank deposits 20,803 13,332

Investments made 250,000 293,093

Fee / service charges paid 1,604 3,001

Charge in respect of gratuity expense 23,314 16,457

Contribution to Employees' Provident Fund 16,805 15,439

Compensation paid to Key

management personnel 656,890 557,260




Cash and bank balances including

Term Deposit Receipts 1,883,339 1,282,197

Payable to Staff Gratuity Fund 139,947 133,127

Payable to Employees' Provident Fund 2,639 2,449

30 June 2019

Rupees in thousand

30 June 2018



30 June 2019

Rupees in thousand

31 December 2018




Subsidiary Company

i) Transactions

Associated undertakingsPremium written 25,597 25,748Claims expense 21,044 29,910Commission and other incentives in respect of Bancassurance 708,838 452,397Profit on bank deposits 81,856 27,222Bank charges 815 884Investments purchased 499,531 921,171Investments sold 169,933 666,291Dividend income 54,669 15,148Reinsurance claim recoveries 7,594 1,996Reinsurance premium ceded 1,889 -

Other related partiesPremium written 30,952 7,583Claims expense 8,559 11,012Commission and other incentives in respect of Bancassurance 42,203 -Profit on bank deposits 37,228 -Investment advisor fee 9,665 8,807Trustee fee 4,920 5,234Investments purchased 2,977,450 755,130Investments sold 2,448,655 408,269Dividend income 71,440 2,220

Transactions with key management personnelSale Proceeds from sale of fixed assets 1,021 4,476Loss on sale of fixed assets 46 2,532Premium written 50 50

Salary and other short term benefits- key management personnelExecutives * 144,394 106,617

30 June 2019

Rupees in thousand

30 June 2018



Associated undertakingsPremium due but unpaid 1,521 1,911Premium received in advance 12,938 1,638Bank deposits 924,269 1,801,576Investments held 1,298,092 1,234,532Dividend receivables 54,669 -Accrued Income - 61,049Commission payable ` 166,801̀ 282,856Claims payable 4,717 7,157Reinsurance expense payable 1,212 6,916

Other related partiesPremium due but unpaid 3,194 2,779Premium received in advance 2,279 11,340Bank deposits 9,115 -Investments held 4,269,216 3,653,798Accrued income 618 1,854Commission payable 6,094 11,354Claims payable - 41


30 June 2019

Rupees in thousand

31 December 2018

Remuneration payable for the management of discretionaryinvestment portfolio 1,766 1,719

Remuneration payable to Trustee 475 512Other (payables)/ receivables (15) 2,500

Staff Retirement Benefit Plan (Gratuity Fund)Charge for the period (10,885) 8,327(Payable to)/ receivable from gratuity fund (3,536) 39,833

* The chief executive does not draw any remuneration


71ADAMJEE INSURANCE


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8,21

0

(371

,591

)

2,84

6,61

9

8,44

6

2,85

5,06

5

(3,2

47,1

00)

1,18

1,61

9

(2,0

65,4

81)

(364

,700

)

(367

,089

)

(2,7

97,2

70)

-

57,7

95

5,23

6,10

5

9,51

4,02

1

1,01

6,03

8

-

(10,

060)

1,00

5,97

8

1,00

5,97

8

1,00

5,60

2

- 376

1,00

5,97

8

928,

738

-

928,

738

-

928,

738

(802

,647

)

-

(802

,647

)

(28,

228)

(70,

037)

(900

,912

)

-

27,8

26

596,

098

1,34

1,30

1

9,47

2

(451

)

-

9,02

1

9,02

1

9,02

1

- -

9,02

1

5,59

1

(5,4

28)

163

- 163

(5,0

93)

4,92

3

(170

)

(749

)

(2,7

83)

(3,7

02)

-

(3,5

39)

43,8

84

46,3

26

794,

597

(55,

751)

(7,1

38)

731,

708

731,

708

694,

361

30,9

99

6,34

8

731,

708

792,

943

(348

,275

)

444,

668

66,9

56

511,

624

(202

,059

)

87,0

75

(114

,984

)

(84,

028)

(124

,877

)

(323

,889

)

-

187,

735

1,90

6,66

4

2,30

1,54

0

8,0

22

(41

8)

(4)

7,6

00

7,6

00

7,5

78

- 22

7,6

00

5,8

36

(3,0

88

)

2,7

48

1,1

27

3,8

75

24

9

(18

6)

63

(57

4)

(2,3

29

)

(2,8

40

)

-

1,0

35

12

,40

3

12

,19

1U

nall

oca

ted

Lia

bili

ties

7,5

32

,72

5

(76

9,3

93

)

(66

,87

3)

6,6

96

,45

9

6,6

96

,45

9

6,5

92

,83

5

30

,74

2

72

,88

2

6,6

96

,45

9

5,8

99

,11

2

(2,3

90

,33

1)

3,5

08

,78

1

24

3,5

56

3,7

52

,33

7

(2,6

71

,82

2)

90

8,4

07

(1,7

63

,41

5)

(48

8,4

24

)

(98

6,2

24

)

(3,2

38

,06

3)

-

51

4,2

74

1,0

48

,46

1

- -

5,0

30

32

,83

8

(62

,45

6)

-

44

,28

1

1,5

82

,42

8

11

,71

1,0

25

24

,08

1,7

11

35

,79

2,7

36

14

,21

7,6

42

3,5

36

,88

4

17

,75

4,5

26

3,0

99

,54

3

(14

7,8

00

)

(36

)

2,9

51

,70

7

2,9

51

,70

7

2,9

50

,29

0

-

1,4

17

2,9

51

,70

7

3,2

64

,77

2

(39

2,8

01

)

2,8

71

,97

1

13

,24

6

2,8

85

,21

7

(3,2

52

,19

6)

1,1

84

,12

7

(2,0

68

,06

9)

(37

1,0

19

)

(37

5,6

28

)

(2,8

14

,71

6)

-

70

,50

1

30

,05

9

- - -

13

,67

8

(4,6

53

)

- -

10

9,5

85

5,3

75

,60

95

,95

6,2

43

11

,33

1,8

52

9,6

84

,30

6

73

2,1

01

10

,41

6,4

07

10

,63

2,2

68

(91

7,1

93

)

(66

,90

9)

9,6

48

,16

6

9,6

48

,16

6

9,5

43

,12

5

30

,74

2

74

,29

9

9,6

48

,16

6

9,1

63

,88

4

(2,7

83

,13

2)

6,3

80

,75

2

25

6,8

02

6,6

37

,55

4

(5,9

24

,01

8)

2,0

92

,53

4

(3,8

31

,48

4)

(85

9,4

43

)

(1,3

61

,85

2)

(6,0

52

,77

9)

-

58

4,7

75

1,0

78

,52

0

- -

5,0

30

46

,51

6

(67

,10

9)

-

44

,28

1

1,6

92

,01

3

17

,08

6,6

34

30

,03

7,9

54

47

,12

4,5

88

23

,90

1,9

48

4,2

68

,98

5

28

,17

0,9

33

5,9

83

,27

1

- -

5,9

83

,27

1

5,9

83

,27

1

5,9

83

,27

1

- -

5,9

83

,27

1

5,9

83

,27

1

(19

5,6

26

)

5,7

87

,64

5

-

5,7

87

,64

5

(3,0

89

,08

8)

21

4,8

48

(2,8

74

,24

0)

(92

1,7

89

)

(39

5,7

48

)

(4,1

91

,77

7)

(2,5

19

,28

9)

(92

3,4

21

)

1,4

75

,53

9

(56

6,8

07

)

47

,01

9

-

42

,62

8

(17

,16

6)

- -

57

,79

2

33

,89

5,7

86

-

33

,89

5,7

86

32

,75

8,0

90

-

32

,75

8,0

90

16

,61

5,5

39

(91

7,1

93

)

(66

,90

9)

15

,63

1,4

37

15

,63

1,4

37

16

,61

5,5

39

30

,74

2

74

,29

9

15

,63

1,4

37

15

,14

7,1

55

(2,9

78

,75

8)

12

,16

8,3

97

25

6,8

02

12

,42

5,1

99

(9,0

13

,10

6)

2,3

07

,38

2

(6,7

05

,72

4)

(1,7

81

,23

2)

(1,7

57

,60

0)

(10

,24

4,5

56

)

(2,5

19

,28

9)

(33

8,6

46

)

2,5

54

,05

9

(56

6,8

07

)

47

,01

9

5,0

30

89

,14

4

(84

,27

5)

-

44

,28

1

1,7

49

,80

5

50

,98

2,4

20

30

,03

7,9

54

81

,02

0,3

74

56

,66

0,0

38

4,2

68

,98

5

60

,92

9,0

23

73ADAMJEE INSURANCE


28 Fair value measurement of financial instruments


Underlying the definition of fair value is the presumption that the Group is a going concern and there is no intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.


IFRS 13 'Fair Value Measurement' requires the Group to classify fair value measurements and fair value hierarchy that reflects the significance of the inputs used in making the measurements of fair value hierarchy has the following levels:







Investment

Equity securities- quoted 10

Equity securities- unquoted 10

Debt securities 11

17


Loans and other receivables * 13

Loan secured against life insurance policies*

Investment - Term deposits* 12


- unsecured and considered good * 14



Prepayments * 15

Cash and bank * 16

17



Outstanding claims (including IBNR)* 22


Other creditors and accruals* 19

17

14,153,753

3,172,505

-

31,048

-

-

-

-

-

-

-

-

17,357,306

-

-

-

-

-

-

-

4,352,703

-

-

-

13,878,048

-

-

-

-

-

18,230,751

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

10,669,875

3,771,020

2,597,118

206,407

17,244,420

26,854,561

3,172,505

4,352,703

31,048

682,387

39,943

13,878,048

8,243,527

5,897,373

329,781

3,815,261

8,622,181

368,790

76,288,108

10,669,875

3,771,020

2,597,118

206,407

17,244,420

26,854,561

-

-

-

-

-

-

-

-

-

-

-

-

26,854,561

-

-

-

-

-

-

-

4,352,703

-

-

-

-

-

-

-

-

-

-

4,352,703

-

-

-

-

-

-

3,172,505

-

-

-

-

-

-

-

-

-

-

-

3,172,505

-

-

-

-

-

26,854,561

3,172,505

4,352,703

-

-

-

-

-

-

-

-

-

-

34,379,769

-

-

-

-

-

* The Group has not disclosed the fair value of these items because their carrying amounts are a reasonable approximation of fair value.


Operator's Fund*


Operator's Fund*


Operator's Fund

12,700,808

-

-

-

-

-

-

-

-

-

-

-

12,700,808

-

-

-

-

-

-

-

-

-

682,387

39,943

-

8,243,527

5,897,373

329,781

3,815,261

-

222,330

19,230,602

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

8,622,181

146,460

8,768,641

-

-

-

-

-

Fair Value through P&L

Loans andreceivables

Cash andcash

equivalents


Level 1 Level 2 Level 3Total Total

Fair value

(Rupees in thousand

Availablefor sale

NoteHeld to

maturity

30 June 2019

Carrrying Amount



28.1 Fair value measurement of financial instruments


Underlying the definition of fair value is the presumption that the Group is a going concern and there is no intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.


IFRS 13 'Fair Value Measurement' requires the Group to classify fair value measurements and fair value hierarchy that reflects the significance of the inputs used in making the measurements of fair value hierarchy has the following levels:






16,477,936

2,227,610

-

29,930

-

-

-

-

-

-

-

-

-

18,735,476

-

-

-

-

-

-

-

4,416,804

-

-

-

15,426,113

-

-

-

-

-

-

19,842,917

-

-

-

-

-

13,653,862

-

-

-

- -

-

-

-

-

-

-

-

-

13,653,862

-

-

-

-

-

-

-

-

-

552,070

34,556

-

7,162,077

6,046,905

350,340

3,116,455

-

250,569

17,512,972

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

5,523,097

101,695

5,624,792

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

10,461,975

2,709,714

2,687,715

229,819

16,089,223

30,131,798

2,227,610

4,416,804

29,930

552,070

34,556

15,426,113

7,162,077

6,046,905

350,340

3,116,455

5,523,097

352,264

- 75,370,019

10,461,975

2,709,714

2,687,715

229,819

- 16,089,223

30,131,798

-

-

-

-

-

-

-

-

-

-

-

-

30,131,798

-

-

-

-

-

-

-

4,416,804

-

-

-

-

-

-

-

-

-

-

4,416,804

-

-

-

-

-

-

2,227,610

-

-

-

-

-

-

-

-

-

-

-

2,227,610

-

-

-

-

-

30,131,798

2,227,610

4,416,804

-

-

-

-

-

-

-

-

-

-

36,776,212

-

-

-

-

- -

Fair Value through P&L


Cash andcash

equivalents


Level 1 Level 2 Level 3Total Total

Fair value

(Rupees in thousand

Availablefor sale

NoteHeld to

maturity

31 December 2018

Carrrying Amount


Investment

Equity securities- quoted 10

Equity securities- unquoted 10

Debt securities 11

17


Loans and other receivables * 13

Loan secured against life insurance policies*

Investment - Term deposits* 12


- unsecured and considered good * 14



Prepayments * 15

Cash and bank * 16

17



Outstanding claims (including IBNR)* 22


Other creditors and accruals* 19

17

* The Group has not disclosed the fair value of these items because their carrying amounts are a reasonable approximation of fair value.


Operator's Fund*


Operator's Fund


Operator's Fund*

75ADAMJEE INSURANCE



This consolidated condensed interim financial information was authorized for issue on 23 August 2019 by the Board of Directors of the Holding Company.

30 Non - adjusting events after balance sheet date

The Board of Directors of the Holding Company in their meeting held on 23 August 2019 proposed an interim cash dividend for the six month period ended 30 June 2019 @ 10% i.e. Rupee 1/- per share (30 June 2018 @ 10 % i.e. Rupee 1/- per share). This consolidated condensed interim financial information for the six month period ended 30 June 2019 does not include the effect of this appropriation which will be accounted for in the consolidated financial statements for the year ending 31 December 2019.

31 General

31.1 Corresponding figures have been rearranged and reclassified for better presentation, wherever considered necessary.



Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director


77ADAMJEE INSURANCE

WINDOW TAKAFUL OPERATIONS

Condensed InterimFinancial Information

for the Six Months Period Ended30 June 2019(Unaudited)


Window Takaful Operations

Introduction

We have reviewed the accompanying condensed interim statement of financial position of Adamjee Insurance Company Limited – Window Takaful Operations (the Operator) as at June 30, 2019, and the related condensed interim profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, and condensed interim cash flow statement and notes to the condensed interim financial information for the six months period then ended (here-in-after referred to as the “condensed interim financial information"). Management is responsible for the preparation and presentation of these condensed interim financial information in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim financial information based on our review. The figures of the condensed interim profit or loss and the condensed interim statement of comprehensive income for the three months period ended June 30, 2019 and related comparative information have not been reviewed, as we are required to review only the cumulative figures for the six months period ended June 30, 2019.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of condensed interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial information as at June 30, 2019 and for the six months period then ended, are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Other Matter

The annual financial statements of the Operator for the year ended December 31, 2018 were audited by another firm of Chartered Accountants who vide their report dated April 3, 2019 expressed a modified opinion thereon.

The engagement partner on the review resulting in this independent auditor’s review report is Rana M. Usman Khan.

Chartered Accountants

Lahore

Date: 23 August 2019

INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF ADAMJEE INSURANCE COMPANY LIMITED WINDOW TAKAFUL OPERATIONS (“THE OPERATOR”) REPORT ON REVIEW OF CONDENSED INTERIM FINANCIAL INFORMATION

79ADAMJEE INSURANCE

As at 30 June 2019

Condensed Interim Statement of Financial position

ASSETS

Qard-e-Hasna to Participants' Takaful Fund

Property and equipment 7

Intangible assets 8

Investments

Equity securities 9

Debt securities 10

Loans and other receivables 11

Takaful / re-takaful receivables 12

Re-takaful recoveries against outstanding claims

Salvage recoveries accrued

Wakala and mudarib fee receivable

Deferred wakala fee

Deferred commission expense

Prepayments 13

Cash and bank 14

TOTAL ASSETS

FUNDS AND LIABILITIES

Operator's Fund

Statutory fund

Reserves

Unappropriated profit

Waqf / Participants' Takaful Fund

Ceded money

Accumulated surplus / (deficit)

Qard-e-Hasna from Operator's Fund

Liabilities

Underwriting provisions

Outstanding claims including IBNR

Unearned contribution reserve

Unearned re-takaful rebate

Contribution deficiency reserve

Retirement benefit obligations

Deferred taxation

Contribution received in advance

Takaful / re-takaful payables 15

Wakala and mudarib fee payable

Unearned wakala fee

Other creditors and accruals 16

Taxation - provision less payments

Total Liabilities

TOTAL FUND AND LIABILITIES


The annexed notes from 1 to 33 form an integral part of this condensed interim financial information.

146,460

14,565

20,483

31,048

-

3,702

-

-

-

-

-

40,809

889

141,882

253,378

399,838

50,000

-

143,431

193,431

-

-

-

-

-

-

-

-

1,883

493

-

-

-

151,095

37,213

15,723

206,407

399,838

-

-

-

-

50,000

21,200

326,569

53,527

21,809

-

151,095

-

97,972

378,313

1,100,485

1,100,485

-

-

-

-

500

42,746

43,246

` 146,460

217,448

552,757

14,200

28,396

-

-

10,196

65,737

-

-

22,045

-

910,779

1,100,485

146,460

14,565

20,483

31,048

50,000

24,902

326,569

53,527

21,809

-

151,095

40,809

98,861

520,195

1,353,863

1,500,323

50,000

-

143,431

193,431

500

42,746

43,246

146,460

217,448

552,757

14,200

28,396

1,883

493

10,196

65,737

-

151,095

59,258

15,723

1,117,186

1,500,323

146,460

16,185

20,633

29,930

-

13,008

230,423

46,654

15,881

23,342

134,721

39,148

83,260

534,528

1,187,713

1,334,173

50,000

18

102,357

152,375

500

(28,849)

(28,349)

146,460

220,606

500,111

12,735

24,103

1,883

530

10,158

24,303

23,342

134,721

111,195

-

1,063,687

1,334,173

(Audited)

Note 31 December 2018

AggregateOperator's Fund

Participants' Takaful Fund

Aggregate

Rupees in thousand

(Unaudited)

30 June 2019

Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director



Condensed Interim Profit and Loss Account (Unaudited)For the Six Months Period Ended 30 June 2019



Rupees in thousand

Note

Participant Takaful Fun d - Revenue Account

Net contribution revenue 18

Net takaful claims 19

Wakala fee 20

Direct expenses

Re-takaful rebate 21

Contribution deficiency

Takaful claims and acquisition expenses


Other income 23


Surplus for the period

Operator Takaful Fund - Revenue Account

Wakala fee 20

Commission expense 22

Management expenses 25

Other income 23


Other expenses 26

Profit before tax

Income tax expense



245,390

(135,857)

(82,078)

(13,312)

10,141

(4,294)

(225,400)

19,990

8,655

1,279

29,924

82,078

(24,226)

(30,112)

27,740

3,116

1,345

(776)

31,425

(9,383)

22,042

155,608

(79,674)

(59,855)

(12,070)

9,259

-

(142,340)

13,268

3,012

-

16,280

59,855

(12,646)

(22,652)

24,557

881

-

(968)

24,470

(8,909)

15,561

469,332

(250,082)

(155,995)

(25,320)

20,441

(4,294)

(415,250)

54,082

15,038

2,475

71,595

155,995

(46,721)

(59,394)

49,880

8,363

1,345

(1,729)

57,859

(16,785)

41,074

289,039

(167,195)

(112,717)

(20,744)

16,860

-

(283,796)

5,243

5,421

-

10,664

112,717

(25,702)

(42,932)

44,083

1,770

166

(1,738)

44,281

(15,362)

28,919

Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director

81ADAMJEE INSURANCE

Condensed Interim Statement of Comprehensive Income (Unaudited)


Participant's Takaful Fund




Operator’s Fund



Unrealized losses on available for sale investment- net of tax



29,924

-

29,924

22,042

-

(441)

21,601

16,280

-

16,280

15,562

-

(1,201)

14,361

71,595

-

71,595

41,074

-

(18)

41,056

10,664

-

10,664

28,919

-

(442)

28,477

For the Six Months Period Ended 30 June 2019



Rupees in thousand

Note

Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director



Condensed Interim Cash Flow Statement (Unaudited)


(a) Takaful activities

Takaful contributions received

Wakala fee received / (paid)

Re-takaful / co-takaful contribution paid

Claims paid

Re-takaful and other recoveries received

Commissions paid



Net cash generated from / (used in) from takaful activities

(b) Other operating activities

Income tax paid

General, administration and management expenses paid

Other (Payments) / Receipts

Net cash (used in) / generated from other operating activities

Total cash generated from / (used in) from operating activities

Investment activities

Profit received on investments

Qard-e-Hasna paid to Participants' Takaful Fund - net

Payment for investments


Fixed capital expenditures

Total cash generated from / (used in) from investing activities

Financing activities

Qard-e-Hasna paid from Operator's Fund

Total cash generated from financing activities

Net Cash generated from / (used in) from all activities

Cash and cash equivalent at beginning of the period

Cash and cash equivalent at end of the period



Depreciation

(Decrease) / Increase in assets other than cash

Decrease / (Increase) in liabilities other than cash

Investment income

Return on bank deposits

Profit / surplus for the period

Attributed to:

Operator's Fund



-

195,712

-

-

-

(53,216)

-

-

142,496

(1,092)

(108,967)

-

(110,059)

32,437

10,211

-

(1,144)

-

(1,661)

7,406

-

-

39,843

102,039

141,882

32,437

(3,431)

(21,044)

23,406

1,345

8,361

41,074

41,074

-

41,074

566,846

(195,712)

(72,581)

(314,066)

11,306

-

21,906

(28,065)

(10,366)

-

-

(9,693)

(9,693)

(20,059)

15,883

-

(50,000)

-

-

(34,117)

-

-

(54,176)

432,489

378,313

(20,059)

-

151,015

(76,874)

-

17,513

71,595

-

71,595

71,595

566,846

-

(72,581)

(314,066)

11,306

(53,216)

21,906

(28,065)

132,130

(1,092)

(108,967)

(9,693)

(119,752)

12,378

26,094

-

(51,144)

-

(1,661)

(26,711)

-

-

(14,333)

534,528

520,195

12,378

(3,431)

129,971

(53,468)

1,345

25,874

112,669

41,074

71,595

112,669

-

79,957

-

-

-

(27,032)

-

-

52,925

(192)

(43,748)

-

(43,940)

8,985

1,883

(5,000)

(30,381)

30,381

(1,101)

(4,218)

-

-

4,767

41,119

45,886

8,985

(995)

73,157

(54,164)

166

1,770

28,919

28,919

-

28,919

-

10,664

10,664

415,142

(79,957)

(71,982)

(193,164)

925

-

20,678

(21,398)

70,244

(494)

-

4,494

4,000

74,244

4,918

-

-

-

-

4,918

5,000

5,000

84,162

230,872

315,034

74,244

-

164,995

(233,996)

-

5,421

10,664

415,142

-

(71,982)

(193,164)

925

(27,032)

20,678

(21,398)

123,169

(686)

(43,748)

4,494

(39,940)

83,229

6,801

(5,000)

(30,381)

30,381

(1,101)

700

5,000

5,000

88,929

271,991

360,920

83,229

(995)

238,152

(288,160)

166

7,191

39,583

28,919

10,664

39,583

Rupees in thousand

Six Months period ended 30 June 2018

Operator's Fund


Aggregate

Six Months period ended 30 June 2019

Operator's Fund


Aggregate


Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director

83ADAMJEE INSURANCE

Condensed Interim Statement of Changes in Funds (Unaudited)


Profit aster tax for the period 01 Jan 2018 to 30 June 2018

Other comprehensive loss for the

period 01 Jan 2018 to 30 June 2018



Profit aster tax for the period 01 July 2018 to 31 December 2018

Other comprehensive income for the

period 01 July 2018 to 31 December 2018



Profit aster tax for the period 01 Jan 2019 to 30 June 2019

Other comprehensive loss for the

period 01 Jan 2019 to 30 June 2019




Surplus for the period 01 Jan 2018 to 30 June 2018

Other comprehensive income for the period 01 Jan 2018 to 30 June 2018

Total comprehensive surplus for the period


(Deficit) for the period 01 July 2018 to 31 December 2018

Other comprehensive income for period the 01 July 2018 to 31 December 2018

Total comprehensive deficit for the period


Surplus for the period 01 Jan 2019 to 30 June 2019

Other comprehensive income for the period 01 Jan 2019 to 30 June 2019

Total comprehensive surplus for the period



50,000

-

-

-

50,000

-

-

-

50,000

-

-

-

50,000

49,809

28,919

-

28,919

78,728

23,629

-

23,629

102,357

41,074

-

41,074

143,431

90

-

(442)

(442)

(352)

-

370

370

18

-

(18)

(18)

-

500

-

-

-

500

-

-

-

500

-

-

-

500

(36,179)

10,664

-

10,664

(25,515)

(3,334)

-

(3,334)

(28,849)

71,595

-

71,595

42,746

-

-

-

-

-

-

-

-

-

-

-

-

99,899

28,919

(442)

28,477

128,376

23,629

370

23,999

152,375

41,074

(18)

41,056

193,431

(35,679)

10,664

-

10,664

(25,015)

(3,334)

-

(3,334)

(28,349)

71,595

-

71,595

43,246

Ceded Money

Unappropriated

Profit Total

Operator's Fund

Rupees in thousand

Fair value

Reserve

Accumulated surplus / (deficit) Total


Rupees in thousand

Fair value

Reserve


Statutory Fund

Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director



Notes to the Condensed InterimFinancial Information (Unaudited)

1 Legal status and nature of business

Adamjee Insurance Company Limited ("the Operator") is a public limited company incorporated in Pakistan on 28 September 1960 under the Companies Act, 1913 (now the Companies Act, 2017). The Operator is listed on Pakistan Stock Exchange Limited and is engaged in general takaful business comprising fire and property, marine, motor, accident, health and miscellaneous. The registered office of the Operator is situated at Tanveer Building, 27-C-III, M.M. Alam Road, Gulberg III, Lahore.

The Operator was granted authorization on 23 December 2015 under Rule 6 of the Takaful Rules, 2012 to undertake Window Takaful Operations ("WTO") in respect of general takaful products by the Securities and Exchange Commission of Pakistan ("SECP").

For the purpose of carrying on the Takaful business, the Operator has formed a Waqf (Participants’ Takaful Fund (PTF)) on 01 January, 2016 under the Waqf deed with a ceded money of Rs.500,000. The Waqf deed govern the relationship of Operator and Participants for management of Takaful operations.


This condensed interim financial information for the six months period ended 30 June 2019 has been prepared in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting and the Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

- International Accounting Standard - 34 - "Interim Financial Reporting" issued by the International Accounting Standards Board (IASB) as are notified under the Companies Act, 2017; and

- Provision of and directives issued under the Companies Act, 2017 ,the Insurance Ordinance, 2000, the Insurance Rules, 2017, Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012.

Where the provisions of and directives issued under the Companies Act, 2017 differ, the Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012 shall prevail.

This condensed interim financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with annual financial statements of the Operator for the year ended 31 December 2018. Comparative condensed interim statement of financial position is stated from annual audited financial statements as of 31 December 2018, whereas comparatives for interim profit and loss account, interim statement of comprehensive income, interim statement of changes in funds and interim cash flow statement and related notes are extracted from condensed interim financial information of the Operator for the six months period ended 30 June 2018.

The condensed interim financial information reflect the financial position and result of operations of both Operator's Fund ('OPF') and PTF in a manner that the assets, liabilities, income and expenses of the OPF and PTF remain separately identifiable.

This condensed interim financial information is unaudited and being submitted to the shareholders as required under Section 237 of the Companies Act, 2017 and the listing regulations of Pakistan Stock Exchange Limited.

This condensed interim financial information is presented in Pakistan Rupees which is the Operator's functional currency and all financial information presented has been rounded off to the nearest thousand, except otherwise stated.


This condensed interim financial information has been prepared under historical cost convention except certain financial instruments carried at fair value, and defined benefit obligations under employees benefits carried at present value. All transactions reflected in this financial information are on accrual basis except for those reflected in cash flow statement.


The accounting policies and the methods of computation adopted in the preparation of the condensed interim financial information are same as those applied in the preparation of annual audited financial statements for the year ended 31 December 2018.

The Operator has adopted all the applicable new standards and amendments to standards, including any consequential amendments to other standards, with a date of initial application of 01 January 2019, as mentioned in the financial statement for


85ADAMJEE INSURANCE


the year ended 31 December 2018. Furthermore, the Company has adopted the temporary exemption which allows the Company to defer the application of both IFRS 9 and IFRS 17 until 31 December, 2021.

There is no significant impact of such changes on this condensed interim financial information of the Operator.


The preparation of this condensed interim financial information in conformity with the approved accounting standards requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the process of applying the Operator's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.


During preparation of this condensed interim financial information, the significant judgments made by the management in applying the Operator's accounting policies and the key sources of estimation and uncertainty were the same as those that applied in the preceding audited annual published financial statements of the Operator for the year ended 31 December 2018.

6 Takaful and Financial risk management

The Operator's financial risk management objectives and policies are consistent with those disclosed in the annual financial statements for the year ended 31 December 2018.

7.1

8.1

8.2

This includes as advance of Rs. 1.30 million for the development of web portal for takaful operations.

12,506

3,291

(1,232)

14,565

534

2,445

260

52

3,291

18,433

2,050

20,483

20,633

-

(2,200)

18,433

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

12,506

3,291

(1,232)

14,565

534

2,445

260

52

3,291

18,433

2,050

20,483

20,633

-

(2,200)

18,433

12,182

2,365

(2,041)

12,506

202

1,743

22

398

2,365

20,633

-

20,633

-

22,000

(1,367)

20,633


Operating assets

Additions during the period / year

Depreciation charged during the period / year

7.1 Additions during the period / year

Furniture and fixture

Motor vehicles

Office equipment

Computer and related accessories

8 Intangible assets

Operating Assets-Intangible

Capital work in progress

8.1 Operating Assets-Intangible

Opening balance- net book value

Transfer from Capital work in progress

Amortization charged during the period / year

8.2

Note 31 December 2018



Aggregate

Rupees in thousand

30 June 2019






9 Investments in equity securities

Available-for-sale-Mutual Fund

Meezan Islamic Income Fund 31,048 - 31,048 29,904 - 29,904

[604,139 units (2018: 563,675 units)]Unrealized gain on revaluation - 26

31,048 29,930

10 Investments in debt securities

Held-to-maturity

Sukuk certificates

[Engro Polymer and Chemicals Limited]

658

-

4,127

505

1,125

6,040

553

13,008

500

500

-

-

100,000

100,000

50,000

50,000

769

-

1,113

746

525

-

549

3,702

-

-

4,141

-

-

17,059

-

21,200

-

769

5,254

746

525

17,059

549

24,902

-

-


Rupees in thousand

31 December 2018

CostImpairment/


30 June 2019

CostImpairment/



30 June 2019 31 December 2018 30 June 2019 31 December 2018

Rupees in thousand

Value of CertificatesNo. of CertificatesFace Value

(Audited)

31 December 2018



Aggregate

Rupees in thousand

(Unaudited)

30 June 2019


Sales tax recoverable

Advance taxes

Accrued income

Loan to employees

Security deposits

Bid money for tenders

Advances

12 Takaful/ Re-takaful receivables- unsecured and considered good

Contribution due from takaful contract holders 278,306 208,389

Less: provision for impairment of contribution due but unpaid - -

278,306 208,389

Amount due from other takaful/ re-takaful operators 48,263 22,034

Less: provision for impairment of due from other takaful/ re-takaful operators - -

48,263 22,034

326,569 230,423

30 June 2019Note

Rupees in thousand


31 December 2018


87ADAMJEE INSURANCE


13 Prepayments

Prepaid re-takaful contribution ceded 64,493

Prepaid monitoring charges (Tracking device) 18,767

Others -

-

-

889

889

74,250

23,722

-

97,972

74,250

23,722

889

98,861 83,260

14 Cash and bank

Cash and cash equivalents:

Cash in hand

Policy and revenue stamps

Cash at bank

Saving accounts 14.1

154

-

141,728

141,882

-

176

378,137

378,313

154

176

519,865

520,195

154

-

534,374

534,528

14.1 Saving accounts carry expected profit rates ranging from 5% to 9% (2018: 3.5% to 7%).

15 Takaful/re-takaful payables

Due to takaful contract holders 263

Due to other takaful / re-takaful operators 24,040

24,303

16 Other creditors and accruals

Agents commission payable 25,901

Federal excise duty 5,145

Federal insurance fee 2,845

Income tax deducted at source 12,006

Accrued expenses 5,341

Others 59,958

-

-

-

21,067

-

-

4,598

1,826

9,722

37,213

1,821

63,916

65,737

-

5,235

3,078

10,588

-

3,144

22,045

1,821

63,916

65,737

21,067

5,235

3,078

15,186

1,826

12,866

59,258 111,196


There has been no change in the contingencies and commitments since the date of last published annual financial statements.

Net contribution revenue

Gross contribution written

Unearned contribution revenue opening

Unearned contribution revenue closing

Contribution earned

Re-takaful contribution ceded

Prepaid re-takaful contribution ceded opening

Prepaid re-takaful contribution ceded closing

Re-takaful expense

307,197

548,119

(552,757)

302,559

(56,155)

(75,264)

74,250

(57,169)

245,390

283,869

371,949

(450,655)

205,163

(64,556)

(54,914)

69,915

(49,555)

155,608

636,726

500,111

(552,757)

584,080

(124,504)

(64,494)

74,250

(114,748)

469,332

546,281

284,406

(450,655)

380,032

(108,664)

(52,244)

69,915

(90,993)

289,039

31 December 2018



Aggregate

Rupees in thousand

30 June 2019Note

(Audited)(Unaudited)

18

30 June 2019 30 June 2018

Six months period ended30 June 2019 30 June 2018

Rupees in thousand

Three months period ended





30 June2018 Operator's

FundParticipants' Takaful Fund

Aggregate

Rupees in thousand

Six Months ended 30 June 2019

Aggregate



Re-takaful and other recoveries received

Re-takaful and other recoveries in respect of

Re-takaful and other recoveries revenue

Re-takaful and other recoveries in respect of

(151,095)

179,511

217,448

(229,570)

167,389

(32,592)

(75,336)

76,396

(31,532)

135,857

82,436

150,737

82,078

10,314

14,027

(14,200)

10,141

25,011

40,024

(40,809)

24,226

88,402

167,547

(156,637)

99,312

(23,243)

(54,002)

57,607

(19,638)

79,674

76,565

107,731

(124,441)

59,855

12,331

10,902

(13,974)

9,259

9,924

27,355

(24,633)

12,646

314,066

217,448

(220,606)

310,908

(48,024)

(75,336)

62,534

(60,826)

250,082

172,369

134,721

(151,095)

155,995

21,906

12,735

(14,200)

20,441

48,382

39,148

(40,809)

46,721

193,164

167,547

(153,116)

207,595

(27,409)

(54,002)

41,011

(40,400)

167,195

147,706

89,452

(124,441)

112,717

20,678

10,156

(13,974)

16,860

30,122

20,213

(24,633)

25,702

19 Net takaful claims

Claims Paid

Claim expense

outstanding claims closing

Net claim expense

20 Wakala fee

Gross Wakala fee

Deferred Wakala fee opening

Deferred Wakala fee closing

21 Re-takaful rebate

Re-takaful rebate received

Re-takaful rebate opening

Re-takaful rebate closing

Net re-takaful rebate

22 Commission expense


Deferred commission opening

Deferred commission closing

outstanding claims opening

Profit on mutual funds-dividend income

8,358

5

8,363

-

-

1,345

1,345

15,038

-

15,038

-

2,475

-

2,475

23,396

5

23,401

-

2,475

1,345

3,820

7,191

-

7,191

166

-

-

166

23 Other income

Profit on bank deposits

Other income

24 Investment income

Profit on mutual funds

Profit on sukuks


30 June 2019 30 June 2018


Rupees in thousand


89ADAMJEE INSURANCE


Salaries, allowances and other benefits 17,493

1,790

162

323

15

-

698

700

8,931

30,112

770

-

6

776

15,886

501

51

33

7

500

1,044

960

3,670

22,652

770

138

60

968

35,564

3,431

345

690

24

123

1,270

1,468

16,479

59,394

1,540

183

6

1,729

29,551

995

195

65

10

640

1,399

1,860

8,217

42,932

1,540

138

60

1,738

30 June 2019 30 June 2018


Rupees in thousand


25 Management expenses

Depreciation and amortization

Printing, stationery and postage

Communication

Bank charges

Legal and professional expense

Travelling and conveyance expenses

Rent and accommodation charges

Others

26 Other expenses

Shariah advisor's fee

Auditors' remuneration

Others




27 Segment Information

Each class of business has been identified as reportable segment. Class of business wise revenue and results have been disclosed in the profit and loss account prepared in accordance with the requirements of the Insurance Ordinance, 2000. The following is a schedule of class of business wise assets and liabilities.



Contribution receivable (inclusive of Federal

Excise Duty, Federal Insurance Fee and

Administrative Surcharge)

Less : Federal Excise Duty

Federal Insurance Fee

Gross Direct Written Contribution

(inclusive of Administrative Surcharge)

Facultative inward contribution

Gross Contribution Written

Contribution earned

Re-takaful expense


Net rebate on re-takaful

Net underwriting income

Takaful claims

Re-takaful and other recoveries

Net claims

Wakala fee

Direct expense


Net takaful claims and expenses


Other Income

Investment income


Segment assets

Unallocated assets

Total assets

Segment liabilities

Unallocated liabilities

Total liabilities

75,903

(10,380)

(649)

64,874

525

65,399

74,357

(61,214)

13,143

12,163

25,306

(19,039)

15,994

(3,045)

(20,820)

(308)

-

(24,173)

1,133

106,566

461,054

(63,050)

(3,941)

394,063

-

394,063

344,218

(8,677)

335,541

-

335,541

(173,594)

31,972

(141,622)

(92,395)

(24,537)

-

(258,554)

76,987

328,433

121,846

(16,663)

(1,041)

104,142

-

104,142

112,303

-

112,303

-

112,303

(103,359)

-

(103,359)

(28,074)

(276)

(4,294)

(136,003)

(23,700)

77,618

68,960

(9,430)

(589)

58,941

420

59,361

38,937

(33,781)

5,156

5,922

11,078

(9,217)

8,295

(922)

(9,713)

(159)

-

(10,794)

284

104,562

89,187

15,974

(2,184)

(137)

13,653

108

13,761

14,265

(11,076)

3,189

2,356

5,545

(5,699)

4,565

(1,134)

(4,993)

(40)

-

(6,167)

(622)

10,072

5,290 532,811 176,642 84,80289,187

15,974

(2,184)

(137)

13,653

108

13,761

14,265

(11,076)

3,189

2,356

5,545

(5,699)

4,565

(1,134)

(4,993)

(40)

-

(6,167)

(622)

10,072

5,290 532,811 176,642 84,802

743,737

(101,707)

(6,357)

635,673

1,053

636,726

584,080

(114,748)

469,332

20,441

489,773

(310,908)

60,826

(250,082)

(155,995)

(25,320)

(4,294)

(435,691)

54,082

15,038

2,475

71,595

627,251

473,234

1,100,485

888,732

168,507

1,057,239

Fire and Property Damage

Marine, Aviation and

TransportMotor

Accident & Health

Miscellaneous Total

Rupees in thousand

30 June 2019 (Unaudited)



91ADAMJEE INSURANCE


Contribution receivable (inclusive of Federal

64,444

(8,813)

(551)

55,080

146

55,226

52,718

(42,624)

10,094

8,648

18,742

(3,268)

3,485

217

(16,104)

31

(15,856)

2,886

107,033

91,054

11,319

(1,548)

(97)

9,674

-

9,674

9,292

(7,027)

2,265

1,502

3,767

2,800

(2,188)

612

(3,252)

(5)

(2,645)

1,122

8,886

5,907

398,287

(54,467)

(3,404)

340,416

73

340,489

216,571

(6,363)

210,208

-

210,208

(121,757)

12,399

(109,358)

(66,011)

(20,490)

(195,859)

14,349

236,843

488,533

99,934

(13,666)

(854)

85,414

-

85,414

62,088

-

62,088

-

62,088

(56,086)

-

(56,086)

(16,438)

(18)

(72,542)

(10,454)

68,175

170,589

64,909

(8,876)

(555)

55,478

-

55,478

39,363

(34,979)

4,384

6,710

11,094

(29,284)

26,704

(2,580)

(10,912)

(262)

-

(13,754)

(2,660)

69,368

59,356

638,893

(87,370)

(5,461)

546,062

219

546,281

380,032

(90,993)

289,039

16,860

305,899

(207,595)

40,400

(167,195)

(112,717)

(20,744)

-

(300,656)

5,243

5,421

-

10,664

490,305

461,674

951,979

815,439

164,889

980,328



TransportMotor

Accident & Health

Miscellaneous Total

Rupees in thousand




TransportMotor

Accident & Health

Miscellaneous Total

Rupees in thousand



Excise Duty, Federal Insurance Fee and

Administrative Surcharge)

Less : Federal Excise Duty

Federal Insurance Fee

Gross Direct Written Contribution

(inclusive of Administrative Surcharge)

Facultative inward contribution

Gross Contribution Written

Contribution earned

Re-takaful expense


Net rebate on re-takaful

Net underwriting income

Takaful claims

Re-takaful and other recoveries

Net claims

Wakala fee

Direct expense


Net takaful claims and expenses


Other Income

Investment income


Segment assets

Unallocated assets

Total assets

Segment liabilities


Total liabilities





20,820

(10,037)

(12,759)

(1,976)

-

-

-

6,832

12,795

16,104

(7,279)

(12,159)

(3,334)

10,478

15,303 338 87,536 26,244 5,300

4,993

(2,295)

(2,918)

(220)

-

-

-

67

161

3,252

(1,425)

(2,380)

(553)

663

92,395

(25,018)

(31,804)

35,573

-

-

-

24,777

103,508

66,011

(10,455)

(17,464)

38,092

37,012

28,074

(5,963)

(7,580)

14,531

-

-

-

5,299

24,205

16,438

(3,876)

(6,474)

6,088

9,690

9,713

(3,408)

(4,333)

1,972

-

-

-

3,834

10,426

10,912

(2,667)

(4,455)

3,790

4,647

155,995

(46,721)

(59,394)

49,880

8,363

1,345

(1,729)

57,859

40,809

359,029

399,838

151,095

55,312

206,407

112,717

(25,702)

(42,932)

44,083

1,770

166

(1,738)

44,281

62,490

319,704

382,194

134,721

95,098



TransportMotor

Accident & Health

Miscellaneous Total

Rupees in thousand


Operator's Fund



TransportMotor

Accident & Health

Miscellaneous Total

Rupees in thousand




TransportMotor

Accident & Health

Miscellaneous Total

Rupees in thousand


229,819

Operator's Fund

Wakala fee income

Less : Commission expense

Management expenses

Other Income

Investment income

Other expenses

Profit before tax

Segment assets

Unallocated assets

Total assets

Segment liabilities


Total liabilities

Operator's Fund

Wakala fee income

Less : Commission expense

Management expenses

Other Income

Investment income

Other expenses

Profit before tax

Segment assets

Unallocated assets

Total assets

Segment liabilities


Total liabilities


93ADAMJEE INSURANCE


28 Fair values of financial instruments




IFRS 13 'Fair Value Measurement' requires the company to classify fair value measurements and fair value hierarchy that reflects the significance of the inputs used in making the measurements of fair value hierarchy has the following levels:




Transfer between levels of the fair value hierarchy are recognised at the end of the reporting period during which the changes have occurred.

10

11

12

14

19

16

50,000

-

-

-

-

-

50,000

-

-

-

-

-

-

24,902

326,569

53,527

21,810

-

426,808

-

-

-

-

-

-

-

-

-

-

520,195

520,195

-

-

-

-

-

-

-

-

-

-

-

-

217,448

65,737

-

3,144

286,329

50,000

24,902

326,569

53,527

21,810

520,195

997,003

217,448

65,737

-

3,144

286,329

-

-

-

- -

-

-

-

-

-

-

-

-

-

-

- -

-

-

-

-

-

-

-

-

-

-

- -

-

-

-

-

-

-

-

-

-

-

- -

-

-

-

-

-

-

-

-

Re-takaful recoveries against outstanding claims

Investments - Debt Securities

Loan and other receivables

Takaful / re-takaful receivables


Cash and bank

Outstanding claims including IBNR

Takaful / re-takaful payables


Other creditors and accruals

Note

Carrying amount Fair value

Availablefor sale


Cash andcash

equivalents

Other

liabilitiesTotal Level 1 Level 2 Level 3 Total

Rupees in thousand

financial




Financial assets not measured at fair value

Financial assets not measured at fair value




-

-

-

-

-

-

-

-

-

-

-

-

-

-

8,551

230,423

46,654

15,881

-

301,509

-

-

-

-

-

-

-

-

-

-

432,489

-

432,489

-

-

-

-

-

-

-

-

-

-

-

-

-

220,606

24,303

23,342

937

269,188

-

8,551

230,423

46,654

15,881

432,489

733,998

220,606

24,303

23,342

937

269,188

-

-

-

- -

-

-

-

-

-

-

-

-

-

-

- -

-

-

-

-

-

-

-

-

-

-

- -

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Note


Availablefor sale


Cash andcash

equivalents

Other


Rupees in thousand

financial



Investments - Debt Securities 10Loan and other receivables 11Takaful / re-takaful receivables 12Re-takaful recoveries against outstanding claims


Cash and bank 14

Outstanding claims including IBNR 19Takaful / re-takaful payables



Financial assets measured at fair value

16

31,048

-

-

-

31,048

-

-

-

2,384

-

-

2,384

-

-

-

-

-

141,882

141,882

-

-

-

-

-

-

-

32,615

32,615

31,048

2,384

-

141,882

175,314

32,615

32,615

31,048

-

-

-

31,048

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

31,048

-

-

-

31,048

-

-

-

Note


Availablefor sale


Cash andcash

equivalents

Other


Rupees in thousand

financial


Operator's Takaful Fund

9

11

14

16

Investments - Equity Securities



Cash and bank







95ADAMJEE INSURANCE


29,930

-

-

-

-

29,930

-

-

-

3,246

23,342

-

26,588

-

-

-

-

-

102,039

-

102,039

-

-

-

-

-

-

-

-

90,262

90,262

29,930

3,246

23,342

102,039

158,557

90,262

90,262

29,930

-

-

-

29,930

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

29,930

-

-

-

-

29,930

-

-

-

9

11

14

16

Investments - Equity Securities



Cash and bank


Note


Availablefor sale


Cash andcash

equivalents

Other


Rupees in thousand

financial


Operator's Takaful Fund

29 Movement in Investment - Available for sale

Opening balance 29,930 30,343

Additions 1,144 119,195

Disposals (sales and redemptions) - (119,506)

Fair value on gains (excluding net realized gain) (26) (102)

Closing balance 31,048 29,930

Note

Rupees in thousand


Six months period ended 30 June 2019

31 December 2018








31 Subsequent events - non adjusting event

There are no significant events that need to be disclosed for the six months period ended 30 June, 2019.


This condensed financial information was approved and authorized for issue on 23 August 2019 by the Board of Directors of the Operator.

33 General

33.1 Corresponding figures have been rearranged and reclassified for better presentation, where considered necessary.



The Operator has related party relationship with its associates, subsidiary company, employee retirement benefit plans, key management personnel and other parties. All transactions involving related parties arising in the normal course of business are conducted at commercial terms and conditions. Balances and transactions with related party are disclosed in relevant notes to this financial statements.

i) Transactions

Subsidiary Company

Contribution underwritten 1,113 135

Contribution received 943 135

Claims paid 181 -


Contribution underwritten 77,283 59,477

Contribution received 84,164 48,750

Claims paid 26,216 7,537

Income on bank deposits 1,504 959


Subsidiary Company

Balances payable 25 19

Balances receivable 170 -

Contribution received in advance 178 -




Cash and bank balances 16,561 61,850

Rupees in thousand




Muhammad Ali Zeb


Umer Mansha

Chairman

Muhammad Asim Nagi



Director


Director

97ADAMJEE INSURANCE

Notes



Notes

99ADAMJEE INSURANCE

Notes

Documents

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