interim financial information for the six month …
TRANSCRIPT
04
06
08
09
Vision / Core Values
Company Information
Directors’ Review to the members onUnconsolidated Condensed Interim FinancialInformation
Directors’ Review to the members onUnconsolidated Condensed Interim FinancialInformation (Urdu)
12 Unconsolidated Condensed Interim Financial
10 Auditor's Review Report
Auditor's Review Report
Information
37 Directors’ Review on Consolidated CondensedInterim Financial Information
39 Consolidated Condensed Interim FinancialInformation
68
69 Condensed Interim FinancialInformation - Window Takaful Operations
BOARD OF DIRECTORSUmer ManshaIbrahim ShamsiImran MaqboolMuhammad AneesMohammad Arif HameedSadia Younas ManshaShaikh Muhammad JawedMuhammad Ali Zeb
ADVISORMian Muhammad Mansha
AUDIT COMMITTEEMuhammad AneesIbrahim ShamsiShaikh Muhammad JawedUmer Mansha
ETHICS, HUMAN RESOURCE AND REMUNERATION COMMITTEEMuhammad AneesIbrahim ShamsiMuhammad Ali ZebUmer Mansha
INVESTMENT COMMITTEEUmer ManshaImran MaqboolMuhammad Ali ZebMuhammad Asim Nagi
COMPANY SECRETARYTameez ul Haque, F.C.A
CHIEF FINANCIAL OFFICERMuhammad Asim Nagi, F.C.A
COMPANY INFORMATION
ChairmanDirectorDirectorDirectorDirectorDirectorDirectorManaging Director & Chief Executive Officer
ChairmanMemberMemberMember
ChairmanMemberMemberMember
ChairmanMemberMemberMember
ADAMJEE INSURANCE 7
Deloitte Yousuf Adil
Adnan Ahmad Chaudhry
AUDITORS
EXECUTIVE MANAGEMENT TEAM
Chartered Accountants
Muhammad Ali ZebMuhammad Asim Nagi
Lahore, Pakistan
CDC House, 99-B, Block-B, S.M.C.H.S.,CDC Share Registrar Services Limited
Main Shahra-e-Faisal, Karachi-74400
Asif Jabbar
Ph: (92) 0800-23275
Muhammad Salim Iqbal
134-A, Abu Bakar Block, New Garden Town,
SHARIAH ADVISOR
Fax (92-21) - 34326053
SHARE REGISTRAR
Mufti Muhammad Hassan Kaleem
Bank Islami Pakistan Limited
MCB Bank Limited
Bank Al-Habib Limited
Main Boulevard Gulberg-III,
Khushali Bank Limited
Meezan Bank Limited
Abu Dhabi Commercial Bank, UAEAllied Bank Limited
Email: [email protected]
Soneri Bank Limited
BANKERS
Habib Bank Limited
Mobilink Microfinance Bank Limited
Zarai Taraqiati Bank Limited
The Punjab Provincial Cooperative Bank Limited
REGISTERED OFFICE
Habib Metropolitan Bank
National Bank of Pakistan
Bank Alfalah Limited
Dubai Islamic Bank Pakistan LimitedEmirates Islamic Bank, UAE
Askari Bank Limited
FINCA Microfinance Bank Limited
MCB Islamic Bank Limited
Samba Bank Limited
United Bank Limited
Adamjee House, 80/A, Block E-1,
Lahore- 54000, Pakistan.Phone: (92-42) 35772960-79Fax (92-42) – 35772868
Web: www.adamjeeinsurance.com
8
Gross PremiumNet PremiumUnderwriting resultsInvestment IncomeProfit before taxProfit after tax
Earnings per share
Financial Highlights:
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 2020.
The highlights for the period under review are as follows:
Performance Review:
The Gross and Net Premium of the Company decreased by 20% and 8% respectively. However, overall underwriting profit improved by 21% over the corresponding period of last year with Motor line of business leading the underwriting performance with an underwriting profit of Rs. 532,121 thousands.
The investment income, profit before tax and profit after tax increased by 52%, 53% and 91% respectively.
Window Takaful Operations:
The written contribution and Surplus of Participants’ Takaful Fund are Rs. 821,605 thousands (2019: Rs. 636,726 thousands) and Rs. 39,468 thousands (2019: Rs. 71,595 thousands), respectively. Most of the growth in contribution written came from the Accident & Health and Miscellaneous line of businesses which contributed 41% and 9%, respectively to the total contribution written in first half of 2020. Window Takaful Operations profit before tax increased by 50% amounting to Rs. 87,036 thousands for the period ended 30 June 2020 (2019: Rs. 57,859 thousands).
Future Outlook:
So far the year 2020 has been a year of distressed growth especially due to the effects of COVID-19 and related global and potential domestic lockdowns. However, with the improvement in situation and lifting of restrictions, we foresee a better growth trajectory during the second half of 2020.
Acknowledgements:
Insurance Industry in Pakistan has seen several peaks and dips in the recent past. It keeps pace with the development of economy and growth vis-a-vis other sectors of the industry. Despite volatility and turbulence in the domestic financial markets, the Insurance Sector has performed well in 2019, registering a positive growth of 12.8%.
We would wholeheartedly like to thank our shareholders, valued customers, employees and development staff for their consistent support that has helped Adamjee Insurance emerge as one of the Pakistan’s leading insurance company. We are also grateful to the Securities & Exchange Commission of Pakistan and the State Bank of Pakistan for their continued guidance and assistance.
For and on behalf of the Board
Directors’ Review to the Members on Unconsolidated Condensed Interim Financial Information (Unaudited)For the Six Months Ended 30 June 2020
Lahore: 24 August 2020 Muhammad Ali Zeb
Managing Director & Chief Executive Officer
30 June 2020
Rupees in thousand
30 June 2019
(Unaudited)(Unaudited)
30 June 2020
Rupees
30 June 2019
(Unaudited)(Unaudited)
9,762,3637,087,341
572,713581,801
1,356,643891,031
12,129,8197,702,132
473,457381,522887,466465,963
2.55 1.33
Ibrahim Shamsi
Director
10
Introduction
Date: 24 August 2020
We have reviewed the accompanying unconsolidated condensed interim statement of financial position of Adamjee Insurance
Company Limited (the Company) as at June 30, 2020, and the related unconsolidated condensed interim statement of profit
and loss account, unconsolidated condensed interim statement of comprehensive income, unconsolidated condensed interim
statement of changes in equity, unconsolidated condensed interim cash flow statement and notes to the unconsolidated
condensed interim financial statements for the six months period then ended (here-in-after referred to as the “unconsolidated
condensed interim financial statements"). Management is responsible for the preparation and presentation of these
unconsolidated condensed interim financial statements in accordance with accounting and reporting standards as applicable in
Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these financial statements based on our
review. The figures of these unconsolidated condensed interim statement of profit and loss account and the unconsolidated
condensed interim statement of comprehensive income for the three month period ended June 30, 2020 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, 2020.
Lahore
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial
Statements Performed by the Independent Auditor of the Entity”. A review of unconsolidated condensed interim financial
statements 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.
Scope of Review
Chartered Accountants
The engagement partner on the review resulting in this independent auditor’s review report is Rana M. Usman Khan.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial
statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable
in Pakistan for interim financial reporting.
INDEPENDENT AUDITOR'S REVIEW REPORTTO THE MEMBERS OF ADAMJEE INSURANCE COMPANY LIMITED (“THE COMPANY”)REPORT ON REVIEW OF UNCONSOLIDATED CONDENSED INTERIM FINANCIAL INFORMATION
ADAMJEE INSURANCE 11
Condensed InterimFinancial Statements
for the Six Months Ended30 June 2020(Unaudited)
12
ASSETSProperty and equipment 8 4,375,855 4,232,130Intangible assets 9 66,490 68,927Investment properties 10 401,896 401,896Investment in subsidiary 11 1,097,900 694,895Investments
Equity securities 12 16,562,349 18,843,017Debt securities 13 362,034 465,868Term deposits 14 5,246,445 5,883,892
Loans and other receivables 15 564,087 477,264Insurance / reinsurance receivables 16 6,735,521 5,810,164Reinsurance recoveries against outstanding claims 6,310,890 5,931,928Salvage recoveries accrued 272,675 301,420Deferred commission expense / acquisition cost 1,192,418 1,190,146Prepayments 17 3,087,278 3,633,739Cash and bank 18 2,830,285 1,176,685
49,106,123 49,111,971
Total assets of Window Takaful Operations - Operator's Fund 19 547,641 426,291
TOTAL ASSETS 49,653,764 49,538,262
EQUITY AND LIABILITIESCapital and reserves attributable to the Company's equity holders
Ordinary share capital 3,500,000Reserves 20 4,555,491Unappropriated profit 13,325,001Total Equity 21,380,492
LiabilitiesUnderwriting provisions
Outstanding claims including IBNR 11,641,695 10,367,347Unearned premium reserves 9,426,420 10,242,348Unearned reinsurance commission 199,721 237,751
Retirement benefit obligations 226,614 225,177Deferred taxation 546,834 1,329,898Premium received in advance 373,125 363,002Insurance / reinsurance payables 3,893,760 2,701,164Other creditors and accruals 21 2,179,722 1,719,334Deposits and other liabilities 22 692,935 723,618Taxation - provision less payments 309,961 52,259
29,490,787 27,961,898
Total liabilities of Window Takaful Operations - Operator's Fund 19 256,770 195,872
TOTAL EQUITY AND LIABILITIES 49,653,764 49,538,262
Contingencies and commitments 23The annexed notes from 1 to 38 form an integral part of these unconsolidated condensed interim financial statements.
Unconsolidated Condensed Interim Statement of Financial PositionAs at 30 June 2020
(Unaudited) (Audited)Rupees in thousand
30 June 2020 31 December 2019Note
Muhammad Ali ZebManaging Director &
Chief Executive Officer
Umer ManshaChairman
Muhammad Asim NagiChief Financial Officer
Ibrahim ShamsiDirector
Shaikh Muhammad JawedDirector
3,500,000 2,715,175
13,691,03219,906,207
ADAMJEE INSURANCE 13
Rupees in thousand
30 June 202030 June 2020 30 June 201930 June 2019
For six month period endedFor three month period endedNote
Muhammad Ali ZebManaging Director &
Chief Executive Officer
Umer ManshaChairman
Muhammad Asim NagiChief Financial Officer
Ibrahim ShamsiDirector
Shaikh Muhammad JawedDirector
The annexed notes from 1 to 38 form an integral part of these unconsolidated condensed interim financial statements.
For six month period ended 30 June 2020
Unconsolidated Condensed Interim Profit and Loss Account (Un-audited)
Net insurance premium 24 3,343,548 3,946,935 7,087,341 7,702,132
Net insurance claims 25 (1,724,210) (2,457,094) (4,067,327) (4,734,885)Net commission and other acquisition costs 26 (449,810) (412,278) (965,189) (781,831)Insurance claims and acquisition expenses (2,174,020) (2,869,372) (5,032,516) (5,516,716)Management expenses 27 (764,279) (902,275) (1,482,112) (1,711,959)Underwriting results 405,249 175,288 572,713 473,457
Investment income 28 171,690 (107,374) 581,801 381,522Rental income 33,419 844 53,531 1,689Other income / (expense) 29 39,961 (6,937) 99,972 30,444Other expenses 30 (17,336) (22,105) (35,204) (52,847)Results of operating activities 632,983 39,716 1,272,813 834,265
Finance cost (1,551) (2,163) (3,206) (4,658)Profit from Window Takaful Operations - Operator's Fund 19 51,260 31,425 87,036 57,859
Profit before tax 682,692 68,978 1,356,643 887,466
Income tax expense (263,363) (191,361) (465,612) (421,503)
Profit / (loss) after tax for the period 419,329 (122,383) 891,031 465,963
Earnings / (loss) after tax per share 31 1.20 (0.35) 2.55 1.33
Rupees
14
Muhammad Ali ZebManaging Director &
Chief Executive Officer
Umer ManshaChairman
Muhammad Asim NagiChief Financial Officer
Ibrahim ShamsiDirector
Shaikh Muhammad JawedDirector
The annexed notes from 1 to 38 form an integral part of these unconsolidated condensed interim financial statements.
Rupees in thousand
For six month period endedFor three month period ended
30 June 201930 June 202030 June 201930 June 2020
Unconsolidated Condensed Interim Statement of Comprehensive Income (Un-audited)
Profit / (loss) after tax for the period 419,329 (122,383) 891,031 465,963
Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
- Unrealized gain / ( loss) on 'available-for-sale' investments - net of tax 1,231,734 (1,032,622) (1,982,474) (905,767)
- Reclassification adjustment relating to 'available for sale' investments disposed of during the period - net of tax - 1,497 2,644 12,260
- Unrealized loss on 'available for sale' investment fromWindow Takaful Operations - net of tax (2,027) (441) (1,343) (18)
- Net effect of translation of foreign branch 29,150 164,279 140,857 172,616
Other comprehensive income / (loss) for the period 1,258,857 (867,287) (1,840,316) (720,909)
Total comprehensive income / (loss) for the period 1,678,186 (989,670) (949,285) (254,946)
For six month period ended 30 June 2020
ADAMJEE INSURANCE 15
Cash flows from operating activities
Underwriting activities
Insurance premium received 8,827,005 11,274,508Reinsurance premium paid (2,031,688) (3,353,024)Claims paid (5,416,708) (7,207,715)Surrenders paid (16,299) (37,034)Reinsurance and other recoveries received 2,163,773 2,492,697Commissions paid (1,149,732) (1,213,350)Commissions received 240,617 262,247Other underwriting payments (1,173,071) (1,439,065)Net cash inflow from underwriting activities 1,443,897 779,264
Other operating activities
Income tax paid (157,070) (142,392)Other operating payments (99,071) (26,069)Loans advanced (13,407) (35,185)Loans installments received 26,659 27,751Other operating receipts 29,621 22,895Net cash outflow from other operating activities (213,268) (153,000)
Total cash inflow from all operating activities 1,230,629 626,264
Cash flows from investing activities
Profit / return received on bank deposits 213,679 88,797Income received from Pakistan Investment Bonds 4,585 -Income from Treasury Bills 24,641 16,428Dividends received 665,809 773,231Rentals received 27,359 931Payments for investments (6,627,768) (4,600,659)Proceeds from disposal of investments 6,679,153 3,428,464Fixed capital expenditure - operating assets (233,923) (489,669)Fixed capital expenditure - intangible assets (12,913) -Proceeds from disposal of operating fixed assets 11,877 15,883Total cash inflow / (outflow) from investing activities 752,499 (766,594)
Cash flows from financing activities
Payments against lease liabilities (17,792) (46,506)Dividends paid (490,345) (518,283)Loan obtained 178,609 -
Net cash outflow from financing activities (329,528) (564,789)
Net cash inflow / (outflow) from all activities 1,653,600 (705,119)
Cash and cash equivalents at beginning of the period 1,176,685 2,211,444
Cash and cash equivalents at end of the period 2,830,285 1,506,325
Rupees in thousand
30 June 2020 30 June 2019
For six month period ended
Unconsolidated Condensed Interim Cash Flow Statement (Unaudited)For six month period ended 30 June 2020
16
Reconciliation to profit and loss account
Operating cash flows 626,264Depreciation expense Provision for retirement benefit obligationsFinance costOther income - bank and term depositsGain / (loss) on disposal of operating fixed assets Provision for doubtful balancesRental income 1,689Increase in assets other than cashIncrease in liabilities other than running financeGain on disposal of investments 2,568Amortization expenseDecrease / (increase) in unearned premium(Decrease) / Increase in loans 7,435Income taxes paidIncrease in tax liabilitiesProvision for impairment in value of 'available-for-sale' investmentsDividend and other income 773,231Income from Treasury Bills 21,910Income from Pakistan Investment Bonds -Profit from Window Takaful Operations - Operator's fund 57,859
Profit after tax 465,963
Cash and cash equivalents for the purposes of the statement of cash flows consists of:
Cash and cash equivalents 2,120 4,923Current and saving accounts 2,828,165 1,501,402
Total cash and cash equivalents 2,830,285 1,506,325
The annexed notes from 1 to 38 form an integral part of these unconsolidated condensed interim financial statements.
(115,624)(23,314)(4,658)90,575(3,909)
(97,352)
2,108,934(733,300)
(11,436)(1,465,113)
142,392(421,503)(490,685)
Rupees in thousand
30 June 2020 30 June 2019
For six month period ended
Rupees in thousand
30 June 2020 30 June 2019
For six month period ended
Unconsolidated Condensed Interim Cash Flow Statement (Unaudited)
Muhammad Ali ZebManaging Director &
Chief Executive Officer
Umer ManshaChairman
Muhammad Asim NagiChief Financial Officer
Ibrahim ShamsiDirector
Shaikh Muhammad JawedDirector
1,230,629 (134,168) (25,358) (3,206)
155,1164,597
-54,042
979,714(2,432,824)
3,724(11,120)815,928(13,252)157,070
(465,612)(203,239)670,24916,0575,648
87,036
891,031
For six month period ended 30 June 2020
ADAMJEE INSURANCE 17
Rupees in thousand
Total
Share capital
Fair ValueReserve
Issued,subscribed and paid up
Generalreserve
Investmentfluctuation
reserve
UnappropriatedProfit
Exchangetranslation
reserve
Reserve forexceptional
losses
Revenue reservesCapital reserves
Muhammad Ali ZebManaging Director &
Chief Executive Officer
Umer ManshaChairman
Muhammad Asim NagiChief Financial Officer
Ibrahim ShamsiDirector
Shaikh Muhammad JawedDirector
The annexed notes from 1 to 38 form an integral part of these unconsolidated condensed interim financial statements.
Unconsolidated Condensed Interim Statement of Changes in Equity
Balance as at December 31, 2018 - (Audited)
Profit for the period January 01, 2019 to June 30, 2019Other comprehensive income for the
period January 01, 2019 to June 30, 2019Total comprehensive income for the period
Transactions with owners of the CompanyFinal dividend for the year ended December 31, 2018
@ 15% (Rupee 1.5/- per share)Balance as at June 30, 2019 - (Unaudited)
Profit for the period July 01, 2019 to December 31, 2019Other comprehensive income for the
period July 01, 2019 to December 31, 2019Total comprehensive income for the period
Transactions with owners of the CompanyInterim dividend for the half year ended June 30, 2019
@ 10% (Rupee 1/- per share)Balance as at December 31, 2019 - (Audited)
Profit for the period January 01, 2020 to June 30, 2020Other comprehensive income for the
period January 01, 2020 to June 30, 2020Total comprehensive income for the period
Transactions with owners of the CompanyFinal dividend for the year ended December 31, 2019
@ 15% (Rupees 1.5/- per share)
Balance as at June 30, 2020 - (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
614,062
-
172,616172,616
-786,678
-
(111,742)(111,742)
674,936
-674,936
-
140,857140,857
-
815,793
2,207,015
-
(893,525)(893,525)
-1,313,490
-
1,603,9421,603,942
2,917,432
-2,917,432
-
(1,981,173)(1,981,173)
-
936,259
936,500
-
--
-936,500
-
--
936,500
-936,500
-
--
-
936,500
12,379,158
465,963
-465,963
(525,000)12,320,121
1,347,012
7,8681,354,880
13,675,001
(350,000)13,325,001
891,031
-891,031
(525,000)
13,691,032
19,663,358
465,963
(720,909)(254,946)
(525,000)18,883,412
1,347,012
1,500,0682,847,080
21,730,492
(350,000)21,380,492
891,031
(1,840,316)(949,285)
(525,000)
19,906,207
For six month period ended 30 June 2020
18
Adamjee Insurance Company Limited ('the Company') is a public limited Company incorporated in Pakistan on September 28, 1960 under the repealed Companies Act, 1913 (now the Companies Act, 2017). The Company is listed on Pakistan Stock Exchange limited and is principally engaged in the general insurance business. The registered office of the Company is situated at Adamjee House Building, 80/A Block E-1, Main Boulevard Gulberg-III, Lahore.
These unconsolidated condensed interim financial statements of the Company for the six month period ended June 30, 2020 have 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
2 Basis of preparation and statement of compliance
1 Legal status and nature of business
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 July 09, 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 statements of the Window Takaful operations has been annexed to these financial statements as per the requirements of the Takaful Rules, 2012 and General Takaful Accounting Regulations, 2019.
4 Accounting policies
These unconsolidated condensed interim financial statements are 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.
The accounting policies and the methods of computation adopted in the preparation of these unconsolidated condensed interim financial statements are same as those applied in the preparation of annual audited financial statements for the year ended December 31, 2019.
- 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.
These unconsolidated condensed interim financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with annual financial statements of the Company for the year ended December 31, 2019. Comparative figures for unconsolidated condensed interim statement of financial position are stated from annual audited financial statements of the Company for the year ended December 31, 2019, 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 statements of the Company for the six month ended June 30, 2019.
The Company was granted authorization on December 23, 2015 under Rule 6 of the Takaful Rules, 2012 to undertake Window Takaful Operations in respect of general takaful products by the Securities and Exchange Commission of Pakistan (SECP) and commenced Window Takaful Operations on January 01, 2016.
These unconsolidated condensed interim financial statements have 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 these financial statements are on accrual basis except for those reflected in cash flow statement.
3 Basis of measurement
Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
ADAMJEE INSURANCE 19
(b) all other financial assets
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 statements.
The tables below set out the fair values as at the end of reporting period and the amount of change in the fair value during that period for the following two groups of financial assets separately:
(a) financial assets with contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding, excluding any financial asset that meets the definition of held for trading in IFRS 9, or that is managed and whose performance is evaluated on a fair value basis, and
IFRS 9
4.1 Standards, amendments or interpretations
IFRS 9 " Financial Instruments" has become applicable , however as insurance company , the management has opted temporary exemption from the application of IFRS 9 as allowed by International Accounting Standards Board (IASB) for entities whose activities are predominantly connected with insurance. Additional disclosures, as required by the IASB, for being eligible to apply the temporary exemption from the application of IFRS 9 given below:
1st Quarter Report19
Financial assets
- - 2,830,285 - - Investment in subsidiary* 1,097,900 - - - - Investments in equity securities - available-for-sale 16,562,349 (2,788,491) - - - Investment in debt securities - held-to-maturity - - 362,034 - -
- - 5,246,445 - - 527,318 - 36,769 - -
Total 18,187,567 (2,788,491) 8,475,533 - -
Cash and Bank*
Term deposits*Loans and other receivables*
* The carrying amount of these financial assets measured applying IAS 39 are a reasonable approximation of their fair values.
periodduring the
Change in
gain / (loss) unrealized Cost
Impairmentless Value
Carrying
during the
unrealized
period
Change in
gain / (loss) value Fair
Pass the SPPI testFail the SPPI test
30 June 2020
The preparation of these unconsolidated condensed interim financial statements 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 these unconsolidated condensed interim financial statements, the significant judgments made by
5 Use of estimates and judgments
Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
20
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 December 31, 2019.
These unconsolidated condensed interim financial statements are 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 December 31, 2019.
6 Functional and presentation currency
8 Property and equipmentOpening balance - net book value 4,168,110 2,332,540Additions during the period / year 8.1 22,667 1,929,636Right of use asset - initial application of IFRS - 16 - 171,918Less:Book value of disposals during the period / year 8.2 (7,280) (49,712)Depreciation charged during the period / year (134,168) (226,400)Net book value of transfers to Investment property - (37,566)Exchange differences and other adjustments 42,329 47,694
(99,119) (265,984)4,091,658 4,168,110
Capital work in progress 284,197 64,0204,375,855 4,232,130
8.1 Additions during the period / year:
Buildings - 1,306,069Furniture and fixtures 4,355 57,971Motor vehicles 8,768 106,078Machinery and equipment 8,420 430,366Computer and related accessories 1,124 23,963Right of use asset - Buildings - 5,189
22,667 1,929,636
8.2 Written down values of property and equipment disposed off during the period / year:
Furniture and fixtures - 22,084Motor vehicles 7,280 20,463Machinery and equipment - 7,165
7,280 49,7129 Intangible assets
Opening balance - net book value 68,927 79,185Additions during the period / year 3,993 8,933Less:Amortization charged during the period / year (11,120) (24,913)Exchange difference 4,690 5,722
(6,430) (19,191)66,490 68,927
(Unaudited) (Audited)Rupees in thousand
30 June 2020 31 December 2019Note
Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
ADAMJEE INSURANCE 21
10 Investment Properties
Opening net book value 401,896
(Unaudited) (Audited)Rupees in thousand
30 June 2020 31 December 2019Note
-Additions and capital improvements - 389,598Unrealized fair value gain - 12,298Closing book value 401,896 401,896
11 Investment in a subsidiary
Adamjee Life Assurance Company Limited - at cost 11.1 1,097,900 694,8951,097,900 694,895
12.1 3,716,710 (2019: 3,716,710) shares of MCB Bank Limited and 3,582,000 (2019: Nil) shares of Fauji Fertilizer Company Limited have been pledged against Standby Letter of Credit (SBLC) issued in favour of Meezan Bank Limited on behalf of Hyundai Nishat Motor (Private) Limited, a related party of the Company.
11.1 The shareholders of the Company in their Extra Ordinary General Meeting (EOGM) held on February 25, 2019 had approved acquisition of 24,059,855 ordinary shares at par value of Rs. 10 each of Adamjee Life Assurance company Limited (ALACL) from IVM intersurer B.V. at share price of Rs. 16.68 per share, for an aggregate price of Rs. 401,200 thousands.
The transaction was completed on Feburary 25, 2020 after obtaining approval from State Bank of Pakistan. After the acquisition of aforementioned shares (representing 25.72%) ALACL has become a wholly owned subsidiary of the Company.
12 Investment - Equity securities
Available-for-sale
Related partiesListed sharesUnlisted shared
Unrealized (loss) / gain
OthersListed sharesUnlisted sharedNIT UnitsMutual Funds
Unrealized gain
Total
(Unaudited) (Audited)
Rupees in thousand
31 December 2019
CostImpairment/
provisionCarrying
ValueCarrying
Value
30 June 2020
CostImpairment/
provision
Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
7,962,628748,226
8,710,854
7,769,530925,360
16145,592
8,740,643
17,451,497
---
(2,207,808)---
(2,207,808)
(2,207,808)
7,962,628748,226
8,710,854(196,128)
8,514,726
5,561,722925,360
16145,592
6,532,8351,514,7888,047,623
16,562,349
7,962,628698,226
8,660,854
6,789,795925,360
161364,265
8,079,581
16,740,435
---
(2,004,569)---
(2,004,569)
(2,004,569)
7,962,628698,226
8,660,8541,853,236
10,514,090
4,785,226925,360
161364,265
6,075,0122,253,9158,328,927
18,843,017
22
13 Investment - Debt securitiesHeld to maturityTreasury Bills 264,470 370,491Pakistan Investment Bonds 97,564 95,377
362,034 465,868
14 Investments - Term DepositsHeld to maturity
Deposits maturing within 12 months
Inside Pakistan - related parties 6,811 6,811 - others 175,066 175,066
181,877 181,877Outside Pakistan - related parties 1,372,533 1,264,698 - others 3,641,925 4,387,207
5,014,458 5,651,9055,196,335 5,833,782
Deposits maturing after 12 months
Inside Pakistan - related parties 2,000 2,000 - others 48,110 48,110
50,110 50,1105,246,445 5,883,892
(Unaudited) (Audited)Rupees in thousand
30 June 2020 31 December 2019
14.1 These include fixed deposits amounting to Rs. 4,117,599 thousands (AED 90,000 thousands) [2019: Rs. 4,848,009 thousands (AED 115,000 thousands)] kept in accordance with the requirements of Insurance Regulations applicable to the United Arab Emirates (UAE) branches for the purpose of carrying on business in (UAE). These also include liens against cash deposits of Rs. 231,987 thousands (2019: Rs. 231,987 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, bid bond guarantees and guarantee to Meezan Bank Limited (MBL) against the loan provided by MBL to Hyundai Nishat Motor (Private) Limited, a related party.
15 Loans and other receivables - considered good
Rent receivable 40,996 14,313Receivable from related parties 15.1 39,801 27,523Accrued income 71,421 125,544Security deposits 51,144 58,399Advances to employees and suppliers 256,300 152,012Advance agent commission 1,003 3,003Loans to employees 36,769 49,484Other receivables 66,653 46,986
564,087 477,264
(Unaudited) (Audited)Rupees in thousand
30 June 2020 31 December 2019Note
Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
ADAMJEE INSURANCE 23
16 Insurance / reinsurance receivables - unsecured and considered good
Due from insurance contract holders 6,853,480 5,730,843Provision for impairment of receivables from
insurance contract holders (922,286) (868,586)5,931,194 4,862,257
Due from other insurers / reinsurers 1,005,629 1,149,209Provision for impairment of due from other
insurers / reinsurers (201,302) (201,302)804,327 947,907
6,735,521 5,810,164
(Unaudited) (Audited)Rupees in thousand
30 June 2020 31 December 2019
16.1 Due from insurance contact holders include an amount of Rs. 294,118 thousands (2019: Rs. 212,014 thousands) held with related parties.
15.1 This represents receivable from Adamjee Life Assurance Company Limited, subsidiary of the Company, in respect of cash value of life policies obtained for key management personnel of the Company. Company is the beneficiary in respect of policies obtained for the employees.
17 Prepayments
Prepaid reinsurance premium ceded 2,937,772 3,500,512Prepaid miscellaneous expenses 149,506 133,227
3,087,278 3,633,739
(Unaudited) (Audited)Rupees in thousand
30 June 2020 31 December 2019
18 Cash and bank
Cash and cash equivalents
Inside PakistanCash in hand 835 476Policy & Revenue stamps, Bond papers 551 9,937
1,386 10,413Outside PakistanCash in hand 734 -
2,120 10,413Cash at bank
Inside PakistanCurrent accounts 425,040 133,822Saving accounts 713,717 967,605
1,138,757 1,101,427Outside PakistanCurrent accounts 1,683,424 59,333Saving accounts 5,984 5,512
1,689,408 64,8452,828,165 1,166,2722,830,285 1,176,685
Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
24
19 Window Takaful Operations - Operator's FundAssetsCash and bank deposits 296,858 91,895Qard-e-Hasna to Participant Takaful Fund 146,460 146,460Investments 34,647 32,958Intangible assets 16,107 17,650Property and equipment 17,589 17,733Current assets - others 35,980 119,595Total Assets 547,641 426,291
Total liabilities 256,770 195,872
Wakala income 199,242 155,995Commission expense (52,440) (46,721)Management expenses (68,549) (59,394)Investment income 3,584 1,345Other income 5,190 8,363Mudarib's share of PTF investment income 1,989 -Other Expenses (1,980) (1,729)Profit before taxation 87,036 57,859Taxation (25,241) (16,785)Profit after taxation 61,795 41,074
Details of total assets, total liabilities and segment disclosure of window takaful operations are stated in the annexed condensed interim financial statements for the six months period ended 30 June 2020.
(Unaudited) (Audited)Rupees in thousand
30 June 2020 31 December 2019
18.1 Cash at bank includes an amount of Rs. 338,722 thousands (December 31, 2019: Rs. 433,504 thousands) held with MCB Bank Limited, a related party of the Company.
18.2 Lien of Rs. 440,000 thousands (2019: Rs. 291,000 thousands) is marked on cash deposits in saving accounts against SBLC (Standby Letter of Credit) issued in favor of Meezan Bank Limited on behalf of Hyundai Nishat Motor (Private) Limited.
20 Reserves
Capital reservesReserves for exceptional losses 22,859 22,859Investment fluctuation reserves 3,764 3,764Exchange translation reserves 815,793 674,936Fair value reserves 936,259 2,917,432
1,778,675 3,618,991Revenue reservesGeneral reserves 936,500 936,500
936,500 936,5002,715,175 4,555,491
(Unaudited) (Audited)Rupees in thousand
30 June 2020 31 December 2019
Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
ADAMJEE INSURANCE 25
21 Other creditors and accruals
Agents commission payable 673,814 630,736Federal Excise Duty / Sales tax / VAT 286,760 50,149Federal Insurance Fee payable 43,655 33,785Workers' welfare fund payable 76,485 76,485Tax deducted at source 132,120 92,873Accrued expenses 107,516 170,872Unpaid and unclaimed dividend 160,484 125,829Payable to employees' provident fund 2,654 2,676Loans and borrowings 178,609 -Sundry creditors 517,625 535,929
2,179,722 1,719,33422 Deposits and other liabilities
Cash margin against performance bonds 596,882 618,540Lease liability 96,053 105,078
692,935 723,618
(Unaudited) (Audited)Rupees in thousand
30 June 2020 31 December 2019
- The Company has issued letter of guarantees amounting to AED 246,500 amounting to Rs.11,278 thousands (2019: AED 449,000 amounting to Rs. 18,928 thousands) relating to UAE branch.
- The Company has provided a guarantee to Meezan Bank Limited (MBL) against the loan provided by MBL to Hyundai Nishat Motor (Private) Limited, a related party, amounting to Rs. 1,209,000 thousands (2019: Rs. 841,000 thousands).
23 Contingencies and commitments
There has been no significant change in the status of contingencies as reported in the preceding published unconsolidated annual financial statements of the Company for the year ended December 31, 2019 except for the following.
24 Net insurance premium revenue
Written gross premiumUnearned premium reserve - openingUnearned premium reserve - closingCurrency translation effectPremium earned
Reinsurance premium cededPrepaid reinsurance premium - openingPrepaid reinsurance premium - closingCurrency translation effectReinsurance expense
Rupees in thousand
30 June 2020 30 June 2019
For six month period ended
Rupees in thousand
30 June 2020 30 June 2019
For three month period ended
Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
5,182,0539,235,451
(9,426,420)9,368
5,000,452
(2,147,625)(2,445,880)2,937,772
(1,171)(1,656,904)3,343,548
5,873,55310,802,642(11,566,014)
606,3095,716,490
(2,051,234)(3,254,355)3,543,053
(7,019)(1,769,555)3,946,935
9,762,36310,242,348(9,426,420)
304,32710,882,618
(3,224,284)(3,500,512)2,937,772
(8,253)(3,795,277)7,087,341
12,129,81910,100,901
(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
26
24.1 Net insurance premium - Business underwritten inside Pakistan
Written gross premiumUnearned premium reserve - openingUnearned premium reserve - closingPremium earned
Reinsurance premium cededPrepaid reinsurance premium - openingPrepaid reinsurance premium - closingReinsurance expense
24.2 Net insurance premium - Business underwritten outside Pakistan
Written gross premiumUnearned premium reserve - openingUnearned premium reserve - closingCurrency translation effectPremium earned
Reinsurance premium cededPrepaid reinsurance premium - openingPrepaid reinsurance premium - closingCurrency translation effectReinsurance expense
3,973,1685,111,264
(5,861,254)3,223,178
(2,090,864)(2,344,222)2,818,671
(1,616,415)1,606,763
1,208,8854,124,187
(3,565,166)9,368
1,777,274
(56,761)(101,658)119,101
(1,171)(40,489)
1,736,785
4,009,4146,030,336
(6,550,695)3,489,055
(2,000,953)(3,220,928)3,480,705
(1,741,176)1,747,879
1,864,1394,772,306
(5,015,319)606,309
2,227,435
(50,281)(33,427)62,348(7,019)
(28,379)2,199,056
6,807,0076,197,501
(5,861,254)7,143,254
(3,113,291)(3,425,355)2,818,671
(3,719,975)3,423,279
2,955,3564,044,847
(3,565,166)304,327
3,739,364
(110,993)(75,157)119,101
(8,253)(75,302)
3,664,062
8,129,2295,508,453
(6,550,695)7,086,987
(4,187,650)(2,838,973)3,480,705
(3,545,918)3,541,069
4,000,5904,592,448
(5,015,319)671,251
4,248,970
(114,777)(28,007)62,348(7,471)
(87,907)4,161,063
Rupees in thousand
30 June 2020 30 June 2019
For six month period ended
Rupees in thousand
30 June 2020 30 June 2019
For three month period ended
2,339,14611,641,695(11,191,266)
(40,650)2,748,925
(982,050)
(6,583,565)
6,523,40517,495
(1,024,715)1,724,210
25 Net insurance claims expenses
Claims paid 7,207,715Outstanding claims including IBNR - closing 10,669,875Outstanding claims including IBNR - opening (10,461,975)Currency translation effect (800,778)Claim expense 6,614,837
Reinsurance and other recoveries received (2,467,176)Reinsurance and other recoveries in respect of outstanding claims - closing (6,227,154)Reinsurance and other recoveries in respect of outstanding claims - opening 6,397,245Currency translation effect 417,133Reinsurance and other recoveries revenue (1,879,952)
4,734,885
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
5,416,70811,641,695(10,367,347)
(514,150)6,176,906
(2,020,193)
(6,583,565)
6,233,348260,831
(2,109,579)4,067,327
Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
ADAMJEE INSURANCE 27
1,050,3215,057,585
(4,507,781)1,600,125
(428,128)
(3,410,063)
3,114,792(723,399)876,726
1,288,8256,584,110
(6,683,485)(40,650)
1,148,800
(553,922)
(3,173,502)
3,408,61317,495
(301,316)847,484
25.1 Net insurance claims expense - Business underwritten inside Pakistan
Claim paid 3,472,180Outstanding claims including IBNR - closing 4,572,871Outstanding claims including IBNR - opening (5,386,215)Claim expense 2,658,836
Reinsurance and other recoveries received (1,477,221)Reinsurance and other recoveries in respect
of outstanding claims - closing (3,046,533)Reinsurance and other recoveries in respect
of outstanding claims - opening 3,769,658Reinsurance and other recoveries revenue (754,096)
1,904,740
25.2 Net insurance claims expense - Business underwritten outside Pakistan
Claim paid 3,735,535Outstanding claims including IBNR - closing 6,097,004Outstanding claims including IBNR - opening (5,075,760)Currency translation effect (800,778)Claim expense 3,956,001
Reinsurance and other recoveries received (989,955)Reinsurance and other recoveries in respect
of outstanding claims - closing (3,180,621)Reinsurance and other recoveries in respect
of outstanding claims - opening 2,627,587Currency translation effect 417,133Reinsurance and other recoveries revenue (1,125,856)
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
2,188,7055,057,585(4,398,967)2,847,323
(572,528)
(3,410,063)
2,948,471(1,034,120)1,813,203
3,228,0036,584,110
(5,968,380)(514,150)
3,329,583
(1,447,665)
(3,173,502)
3,284,877260,831
(1,075,459)2,254,124 2,830,145
Rupees in thousand
30 June 2020 30 June 2019
For six month period ended
Rupees in thousand
30 June 2020 30 June 2019
For three month period ended
26 Net commission and other acquisition costs
Commission paid or payable 1,231,140Deferred commission expense - opening 788,431Deferred commission expense - closing (1,075,282)Currency translation effect 84,718Net commission 1,029,007
Commission received or recoverable (262,247)Unearned reinsurance commission - opening (221,371)Unearned reinsurance commission - closing 237,103Currency translation effect (661)Commission from reinsurance (247,176)
781,831
1,180,6991,190,146(1,192,418)
65,6691,244,096
(240,617)(237,751)199,721
(260)(278,907)965,189
742,775799,779
(1,075,282)77,457
544,729
(173,192)(195,759)237,103
(603)(132,451)412,278
598,9651,197,363(1,192,418)
1,532605,442
(154,240)(201,121)199,721
8(155,632)449,810
Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
28
26.1 Net commission and other acquisition costs - Business underwritten inside Pakistan
Commission Paid or payable 578,880Deferred commission expense - opening 297,403Deferred commission expense - closing (417,247)Net Commission 459,036
Commission received or recoverable (257,151)Unearned reinsurance commission - opening (218,690)Unearned reinsurance commission - closing 231,646Commission from reinsurance (244,195)
214,841
26.2 Net commission and other acquisition costs - Business underwritten outside Pakistan
Commission Paid or payable 652,260Deferred commission expense - opening 491,028Deferred commission expense - closing (658,035)Currency translation effect 84,718Net Commission 569,971
Commission received or recoverable (5,096)Unearned reinsurance commission - opening (2,681)Unearned reinsurance commission - closing 5,457Currency translation effect (661)Commission from reinsurance (2,981)
566,990
508,389352,673(400,172)460,890
(236,579)(236,381)195,331
(277,629)183,261
672,310837,473(792,246)
65,669783,206
(4,038)(1,370)4,390(260)
(1,278)781,928
384,847264,800(417,247)232,400
(171,507)(191,511)231,646(131,372)101,028
357,928534,979(658,035)
77,457312,329
(1,685)(4,248)5,457
(603)(1,079)
311,250
291,340901,785
(792,246)1,532
402,411
(1,491)(4,026)4,390
8(1,119)
401,292
307,625295,578
(400,172)203,031
(152,749)(197,095)195,331
(154,513)48,518
Rupees in thousand
30 June 2020
For six month period ended
Rupees in thousand
30 June 2020 30 June 2019 30 June 2019
For three month period ended
27 Management expensesEmployee 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
454,88415,1648,6944,510
68,8653,964
825,660
9,052846
15,9179,6268,1985,257
13,14021,97153,005
-36,413
9,105764,279
436,52017,72012,5037,118
59,0445,9411,274
37,12911,4187,160
25,5719,870
20,0909,554
15,26024,01751,79597,35238,86814,071
902,275
848,34826,76520,14112,113
134,16811,120
1,58154,13122,9196,349
41,13621,42617,56012,57029,07643,37795,996
-61,77121,565
1,482,112
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
Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
ADAMJEE INSURANCE 29
Rupees in thousand
30 June 2020
For six month period ended
Rupees in thousand
30 June 2020 30 June 2019 30 June 2019
For three month period ended
28 Investment IncomeBusiness underwritten Inside Pakistan
Available-for-saleIncome from equity securitiesDividend income- associated undertakings 382,618- others 361,443
744,061Income from debt securities - Held to maturityReturn on Pakistan Investment Bonds -Profit on Treasury Bills 21,910
21,910Income from Term DepositsReturn on Term Deposits 1,082
1,082Net realized gains on investmentsRealized gains on investments 2,568
769,621Provision of impairment in value of
'available-for-sale' investments (490,685)278,936
Business underwritten Outside PakistanAvailable-for-saleIncome from equity securities
Dividend income 29,170
Net realized gains on investments
Realized gains on- others -Return on Term Deposits 73,416
102,586Net investment income 381,522
29 Other incomeReturn on bank balances 16,077Gain / (loss) on sale of fixed assets (3,909)Return on loans to employee 140Exchange gain / (loss) 4,619Shared expenses received 5,660Miscellaneous 7,857
239,13780,091
319,228
3,3735,1468,519
6,6516,651
-334,398
(203,239)131,159
40
-40,49140,531
171,690
22,3321,876
545,8433,4306,426
39,961
191,309134,428325,737
-11,62011,620
1,0821,082
2,108340,547
(505,385)(164,838)
15,427
-42,03757,464
(107,374)
1,632(8,101)
67(3,937)2,870
532(6,937)
478,273191,882670,155
5,64816,05721,705
6,6516,651
3,533702,044
(203,239)498,805
94
19182,71182,996
581,801
65,7544,597
11210,9477,000
11,56299,972 30,444
Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
30
30 Other expenses
Legal & professional charges - OtherAuditors' remunerationSubscription feeDonationsDirectors' feeCentral Depository expenseWorkers Welfare FundOthers
5,6723,5941,4735,684
116228-569
17,336
6,6972,6541,184
---
10,0731,497
22,105
12,4676,6753,517
10,000116670-
1,75935,204
14,0215,5312,519
---
26,7783,998
52,847
Rupees in thousand
30 June 2020
For six month period ended
Rupees in thousand
30 June 2020 30 June 2019 30 June 2019
For three month period ended
32 Transactions with related parties
The Company has related party relationships with its associates, subsidiary company, entities with common directors, employee retirement benefit plans, key management personnel and other parties. The transactions with related parties are carried out at commercial terms and conditions except for compensation to key management personnel which are on employment terms. There are no transactions with key management personnel other than those specified in their terms of employment.
The transactions and balances with related parties during the period other than those which have been specifically disclosed elsewhere in these unconsolidated condensed interim financial statements are as follows:
Number of shares
Rupees
31 Earnings per share - basic and diluted
There is no dilutive effect on the basic earnings
per share which is based on:
Net profit / (loss) after tax for the period 465,963
Weighted average number of shares 350,000,000
Earnings / (loss) after tax per share
419,329
350,000,000
1.20
(122,383)
350,000,000
(0.35)
891,031
350,000,000
2.55 1.33
Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
ADAMJEE INSURANCE 31
i) TransactionsSubsidiary company
Premiums underwritten 18,840 13,753Premiums received 18,229 11,707Claims paid 3,225 5,490Claims received 3,000 2,500Premium paid 14,813 2,543Rent paid / payable - 750Rent / service charges received - 517
Other related partiesPremiums underwritten 708,012 787,145Premiums received 587,676 725,376Claims paid 322,950 314,925Commission Paid 18,859 52,015Rent paid 6,085 4,930Rent received 7,776 -Dividends received 406,532 391,050Dividends paid 106,292 106,292Income on bank deposits 52,910 20,803Investments made 50,000 250,000Fee / service charges paid 4,739 1,604Charge in respect of gratuity expense 18,064 16,821Contribution to Employees'
Provident Fund 17,597 16,805Compensation paid to Key
management personnel 686,558 656,890
ii) Period end balancesSubsidiary company
Balances receivable 77,650 35,962Balances payable 1,787 2,048
Other related partiesBalances receivable 312,486 215,212Balances payable 298,971 359,782Cash and bank balances including term deposits 1,720,067 1,707,013Payable to Staff Gratuity Fund 145,533 142,469
Rupees in thousand
30 June 2020 30 June 2019
(Unaudited) (Audited)Rupees in thousand
30 June 2020 31 December 2019
Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
32
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war
d pr
emiu
mA
dmin
istr
ativ
e su
rcha
rge
Insu
ranc
e pr
emiu
m e
arne
d
Insu
ranc
e pr
emiu
m c
eded
to r
eins
urer
sN
et in
sura
nce
prem
ium
Com
mis
sion
inco
me
Net
und
erw
ritin
g in
com
e
Insu
ranc
e cl
aim
s
Insu
ranc
e cl
aim
rec
over
ies
from
rei
nsur
ers
Net
cla
ims
Com
mis
sion
exp
ense
1,49
2,28
4(1
78,3
39)
(13,
123)
1,30
0,82
2
1,30
0,82
21,
252,
021
-48
,801
1,30
0,82
2
1,37
8,23
4
(24,
727)
1,35
3,50
72,
262
1,35
5,76
9
(522
,729
)
48,4
71
(474
,258
)
(90,
769)
3,10
2,86
2(1
47,4
72)
(34)
2,95
5,35
6
2,95
5,35
62,
951,
581
-3,
775
2,95
5,35
6
3,73
9,36
4
(75,
302)
3,66
4,06
21,
278
3,66
5,34
0
(3,3
29,5
83)
1,07
5,45
9
(2,2
54,1
24)
(783
,206
)
Man
agem
ent e
xpen
ses
Net
insu
ranc
e cl
aim
s an
d ex
pens
es
Und
erw
ritin
g re
sult
Net
inve
stm
ent i
ncom
eR
enta
l inc
ome
Oth
er in
com
eO
ther
exp
ense
sFi
nanc
e co
stP
rofit
from
Win
dow
Tak
aful
Ope
ratio
ns -
Ope
rato
r's F
und
Pro
fit b
efo
re t
ax
Seg
men
t ass
ets
1,33
4,06
55,
288,
123
Una
lloca
ted
asse
ts7,
572,
533
12,8
60,6
56
Seg
men
t lia
bilit
ies
3,89
1,10
2(4
88,4
10)
(33,
033)
3,36
9,65
9
3,36
9,65
93,
358,
570
2,63
08,
459
3,36
9,65
9
3,53
5,62
4
(3,1
34,7
53)
400,
871
223,
468
624,
339
(990
,079
)
702,
912
(287
,167
)
(218
,837
)
7,45
4,25
7
7,75
2,47
0
13,4
41(7
79)
(18)
12,6
44
12,6
4412
,606 - 38
12,6
44
16,3
09
(11,
837)
4,47
279
15,
263
(95,
756)
26,4
62
(69,
294)
(1,1
94)
94,2
47
111,
129
573,
438
(64,
185)
(5,0
43)
504,
210
504,
210
493,
683
230
10,2
9750
4,21
0
387,
836
(103
,990
)28
3,84
632
128
4,16
7
(229
,362
)
37,5
61
(191
,801
)
(56,
570)
768,
821
981,
599
10,8
39 (55)
(11)
10,7
73
10,7
7310
,773 - -
10,7
73
10,7
80 -10
,780
10,7
80
2,27
2
-
2,27
2
(845
)
5,66
6
24,2
572,
361,
386
3,03
1,05
3(1
44,3
36)
-2,
886,
717
2,88
6,71
72,
882,
985
-3,
732
2,88
6,71
7
3,69
7,94
1
(47,
359)
3,65
0,58
2
3,65
0,58
2
(3,2
17,7
62)
1,03
4,34
0
(2,1
83,4
22)
(779
,874
)
5,10
7,43
3
10,1
53,9
97
1,09
7,72
7(1
0,39
9)(1
0,74
0)1,
076,
588
1,07
6,58
81,
075,
829
- 759
1,07
6,58
8
938,
773
-93
8,77
3-
938,
773
(666
,082
)
-
(666
,082
)
(25,
216)
889,
691
1,82
8,58
3
41,7
63(1
,989
)-
39,7
74
39,7
7439
,774 - -
39,7
74
7,82
4
(12,
134)
(4,3
10)
264
(4,0
46)
(19,
006)
14,5
05
(4,5
01)
(891
)
60,7
64
74,7
25
616,
273
(54,
455)
(6,0
90)
555,
728
555,
728
551,
375
-4,
353
555,
728
902,
787
(456
,505
)44
6,28
251
,578
497,
860
(439
,071
)
245,
176
(193
,895
)
(69,
498)
1,71
4,31
9
2,22
2,54
6
5,76
6(3
13)
(5)
5,44
8
5,44
85,
443
-5
5,44
8
6,51
0
(3,9
72)
2,53
822
32,
761
669
152
821
(402
)
20,0
13
24,0
3010
,388
,138
Una
lloca
ted
liabi
litie
s53
6,98
4
7,67
0,82
4(7
95,7
88)
(68,
029)
6,80
7,00
7
6,80
7,00
76,
731,
478
2,86
072
,669
6,80
7,00
7
7,14
3,25
4
(3,7
19,9
75)
3,42
3,27
927
7,62
93,
700,
908
(2,8
47,3
23)
1,03
4,12
0
(1,8
13,2
03)
(460
,890
)
12,1
61,1
5324
,631
,955
36,7
93,1
08
15,1
46,5
843,
675,
851
18,8
22,4
3510
,925
,122
10,7
73,6
86(9
43,2
60)
(68,
063)
9,76
2,36
3
9,76
2,36
39,
683,
059
2,86
076
,444
9,76
2,36
3
10,8
82,6
18
(3,7
95,2
77)
7,08
7,34
127
8,90
77,
366,
248
(6,1
76,9
06)
2,10
9,57
9
(4,0
67,3
27)
(1,2
44,0
96)
17,4
49,2
7632
,204
,488
49,6
53,7
64
25,5
34,7
224,
212,
835
29,7
47,5
57
Hea
lthO
utsi
de
Pak
ista
n
Out
side
Pak
ista
n
Out
side
Pak
ista
n
Insi
de
Pak
ista
n
Out
side
Pak
ista
n
Insi
de
Pak
ista
n
Insi
de
Pak
ista
n
Insi
de
Pak
ista
n
Insi
de
Pak
ista
n
Insi
de
Pak
ista
n
Out
side
Pak
ista
n
Out
side
Pak
ista
n
Fire
and
pro
pert
y da
mag
eM
arin
e, a
viat
ion
and
trans
port
Mot
orM
isce
llane
ous
Tota
l
Aggr
egat
e
Rup
ees
in th
ousa
nds
Six
mo
nth
pe
rio
d e
nd
ed
30
Ju
ne
20
20
Hea
lthO
utsi
de
Pak
ista
n
Out
side
Pak
ista
n
Out
side
Pak
ista
n
Insi
de
Pak
ista
n
Out
side
Pak
ista
n
Insi
de
Pak
ista
n
Insi
de
Pak
ista
n
Insi
de
Pak
ista
n
Insi
de
Pak
ista
n
Insi
de
Pak
ista
n
Out
side
Pak
ista
n
Out
side
Pak
ista
n
Fire
and
pro
pert
y da
mag
eM
arin
e, a
viat
ion
and
trans
port
Mot
orM
isce
llane
ous
Tota
l
Aggr
egat
e
Rup
ees
in th
ousa
nds
30 J
une 2
020
(173
,672
)
(556
)
(154
,728
)(4
,065
)(4
87,7
08)
(458
,199
)(6
2,30
6)(7
,747
)(1
32,8
78)
(253
)(1
,011
,292
)(4
70,8
20)
(1,4
82,1
12)
(679
,676
)(7
1,04
4)(4
03,0
99)
(2,6
38)
(1,0
52,7
35)
(3,4
21,4
95)
(753
,604
)(1
3,13
9)(3
96,2
71)
166
(3,2
85,3
85)
(3,5
08,1
50)
(6,7
93,5
35)
(55,
337)
(65,
781)
(118
,932
)8,
142
303,
034
229,
087
185,
169
(17,
185)
101,
589
2,92
741
5,52
315
7,19
057
2,71
3
498,
805
82,9
9658
1,80
152
,552
979
53,5
3165
,099
34,8
7399
,972
(28,
899)
(6,3
05)
(35,
204)
(1,1
49)
(2,0
57)
(3,2
06)
87,0
36-
87,0
36
1,08
8,96
726
7,67
61,
356,
643
Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
--
ADAMJEE INSURANCE 33
33.1
Seg
men
t In
form
atio
n
Pre
miu
m r
ecei
vab
le (I
nclu
sive
of f
eder
al e
xcis
e d
uty,
Fed
eral
insu
ranc
e fe
e an
d A
dm
inis
trat
ive
surc
harg
e)Fe
der
al e
xcis
e d
uty
/ VA
TFe
der
al in
sura
nce
fee
Gro
ss w
ritte
n p
rem
ium
(inc
lusi
ve o
f ad
min
istr
ativ
e su
rcha
rge)
Gro
ss d
irect
pre
miu
mFa
culta
tive
inw
ard
pre
miu
mA
dm
inis
trat
ive
surc
harg
e
Insu
ranc
e p
rem
ium
ear
ned
Insu
ranc
e p
rem
ium
ced
ed to
rei
nsur
ers
Net
insu
ranc
e p
rem
ium
Com
mis
sion
inco
me
Net
und
erw
riti
ng in
com
e
Insu
ranc
e cl
aim
s
Insu
ranc
e cl
aim
rec
over
ies
from
rei
nsur
ers
Net
cla
ims
Com
mis
sion
exp
ense
Man
agem
ent e
xpen
ses
Net
insu
ranc
e cl
aim
s an
d e
xpen
ses
Und
erw
riti
ng r
esul
t
Net
inve
stm
ent i
ncom
eR
enta
l inc
ome
Oth
er in
com
eO
ther
exp
ense
sFi
nanc
e co
stP
rofit
from
Win
dow
Tak
aful
Op
erat
ions
- O
per
ator
's F
und
Pro
fit b
efo
re t
ax
Seg
men
t ass
ets
Una
lloca
ted
ass
ets
Seg
men
t lia
bilit
ies
Una
lloca
ted
liab
ilitie
s
4,77
3,03
9(5
90,1
41)
(41,
030)
4,14
1,86
8
4,14
1,86
84,
130,
334
2,73
08,
804
4,14
1,86
8
3,47
3,20
7
(3,0
27,6
56)
445,
551
176,
778
622,
329
(571
,549
)
521,
372
(50,
177)
(213
,180
)
(190
,459
)
(453
,816
)
168,
513
6,99
2,77
3-
7,06
0,54
0-
28,3
38(1
,850
)(7
3)26
,415
26,4
1526
,282
- 133
26,4
15
22,8
48
(15,
735)
7,11
32,
897
10,0
10
(14,
066)
18,4
63
4,39
7
(2,9
69)
(826
)
602
10,6
12
95,7
88-
111,
211
-
485,
939
(53,
315)
(4,2
98)
428,
326
428,
326
417,
387
328
10,6
1142
8,32
6
408,
997
(52,
487)
356,
510
383
356,
893
(256
,627
)
53,4
23
(203
,204
)
(55,
194)
(129
,377
)
(387
,775
)
(30,
882)
489,
767
-
624,
861
-
13,1
03(2
60)
(27)
12,8
16
12,8
1612
,775
- 4112
,816
18,4
43
-18
,443
-18
,443
(7,0
17)
-
(7,0
17)
(3,2
87)
(6,0
71)
(16,
375)
2,06
8
5,18
7-
25,5
52-
1,72
6,03
7(2
06,0
60)
(15,
210)
1,50
4,76
7
1,50
4,76
71,
455,
921
-48
,846
1,50
4,76
7
1,43
3,73
9
(25,
917)
1,40
7,82
21,
744
1,40
9,56
6
(735
,508
)
(7,0
07)
(742
,515
)
(96,
888)
(521
,057
)
(1,3
60,4
60)
49,1
06
1,06
2,81
2-
2,35
9,10
1-
4,13
0,51
4(1
98,7
23)
-3,
931,
791
3,93
1,79
13,
926,
283
-5,
508
3,93
1,79
1
4,17
4,08
1
(49,
848)
4,12
4,23
3(9
64)
4,12
3,26
9
(3,9
11,6
49)
1,08
8,72
3
(2,8
22,9
26)
(563
,436
)
(653
,778
)
(4,0
40,1
40)
83,1
29
5,55
2,81
4-
9,99
3,41
5-
1,12
3,02
1(2
1,33
8)(1
0,97
6)1,
090,
707
1,09
0,70
71,
091,
405
- (698
)1,
090,
707
873,
920
-87
3,92
0-
873,
920
(740
,059
)
-
(740
,059
)
(28,
982)
(69,
001)
(838
,042
)
35,8
78
558,
513
-
1,36
6,49
2-
19,7
98(9
43)
-18
,855
18,8
5518
,855
- -18
,855
25,5
51
(18,
102)
7,44
9-
7,44
9
(20,
388)
16,6
87
(3,7
01)
(34)
(7,8
04)
(11,
539)
(4,0
90)
33,5
10-
40,3
51-
1,05
7,55
8(8
4,40
4)(9
,593
)96
3,56
1
963,
561
957,
637
-5,
924
963,
561
897,
124
(439
,858
)45
7,26
665
,290
522,
556
(355
,093
)
186,
308
(168
,785
)
(64,
792)
(133
,142
)
(366
,719
)
155,
837
1,92
3,75
6-
2,30
7,32
5-
11,2
83(5
65)
(5)
10,7
13
10,7
1310
,671
- 4210
,713
8,04
7
(4,2
22)
3,82
51,
048
4,87
3
(2,8
81)
1,98
3
(898
)
(245
)
(444
)
(1,5
87)
3,28
6
19,2
49-
22,7
63-
9,16
5,59
4(9
55,2
58)
(81,
107)
8,12
9,22
9
8,12
9,22
98,
052,
684
3,05
873
,487
8,12
9,22
9
7,08
6,98
7
(3,5
45,9
18)
3,54
1,06
924
4,19
53,
785,
264
(2,6
58,8
36)
754,
096
(1,9
04,7
40)
(459
,036
)
(1,0
43,0
36)
(3,4
06,8
12)
378,
452
278,
936
1,68
925
,092
(47,
338)
(2,3
27)
57,8
59
692,
363
11,0
27,6
2126
,257
,955
37,2
85,5
76
13,7
18,3
193,
567,
097
17,2
85,4
16
4,20
3,03
6(2
02,3
41)
(105
)4,
000,
590
4,00
0,59
03,
994,
866
-5,
724
4,00
0,59
0
4,24
8,97
0
(87,
907)
4,16
1,06
32,
981
4,16
4,04
4
(3,9
56,0
01)
1,12
5,85
6
(2,8
30,1
45)
(569
,971
)
(668
,923
)
(4,0
69,0
39)
95,0
05
102,
586
-5,
352
(5,5
09)
(2,3
31)
-
195,
103
5,70
6,54
86,
546,
138
12,2
52,6
86
10,1
93,2
9267
9,06
2
10,8
72,3
54
13,3
68,6
30(1
,157
,599
)(8
1,21
2)12
,129
,819
12,1
29,8
1912
,047
,550
3,05
879
,211
12,1
29,8
19
11,3
35,9
57
(3,6
33,8
25)
7,70
2,13
224
7,17
67,
949,
308
(6,6
14,8
37)
1,87
9,95
2
(4,7
34,8
85)
(1,0
29,0
07)
(1,7
11,9
59)
(7,4
75,8
51)
473,
457
381,
522
1,68
930
,444
(52,
847)
(4,6
58)
57,8
59
887,
466
16,7
34,1
6932
,804
,093
49,5
38,2
62
23,9
11,6
114,
246,
159
28,1
57,7
70
Hea
lthO
utsi
de
Pak
ista
n
Out
side
Pak
ista
n
Out
side
Pak
ista
n
Insi
de
Pak
ista
n
Out
side
Pak
ista
n
Insi
de
Pak
ista
n
Insi
de
Pak
ista
n
Insi
de
Pak
ista
n
Insi
de
Pak
ista
n
Insi
de
Pak
ista
n
Out
side
Pak
ista
n
Out
side
Pak
ista
n
Fire
and
pro
pert
y da
mag
eM
arin
e, a
viat
ion
and
trans
port
Mot
orM
isce
llane
ous
Tota
l
Aggr
egat
e
Rup
ees
in th
ousa
nds
Six
mo
nth
pe
rio
d e
nd
ed
30
Ju
ne
20
19
Hea
lthO
utsi
de
Pak
ista
n
Out
side
Pak
ista
n
Out
side
Pak
ista
n
Insi
de
Pak
ista
n
Out
side
Pak
ista
n
Insi
de
Pak
ista
n
Insi
de
Pak
ista
n
Insi
de
Pak
ista
n
Insi
de
Pak
ista
n
Insi
de
Pak
ista
n
Out
side
Pak
ista
n
Out
side
Pak
ista
n
Fire
and
pro
pert
y da
mag
eM
arin
e, a
viat
ion
and
trans
port
Mot
orM
isce
llane
ous
Tota
l
Aggr
egat
e
Rup
ees
in th
ousa
nds
31 D
ece
mber
2019
Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
34
Fina
ncia
l ass
ets
- m
easu
red
at fa
ir va
lue
Inve
stm
ent
E
quity
sec
uritie
s- q
uote
d12
1
3,63
6,81
7
-
-
-
-
13,
636,
817
1
3,63
6,81
7
-
-
13,
636,
817
E
quity
sec
uritie
s- u
nquo
ted
12
2,
925,
532
-
-
-
-
2
,925
,532
-
-
2
,925
,532
2,92
5,53
2
Deb
t sec
uritie
s13
-
362
,034
-
-
-
362
,034
-
36
2,03
4
-
36
2,03
4
19
34,
647
-
-
-
-
34
,647
34,
647
-
-
3
4,64
7
Fina
ncia
l ass
ets
- no
t mea
sure
d at
fair
valu
e
Loan
s an
d ot
her r
ecei
vabl
es *
15
-
-
5
64,0
87
-
-
56
4,08
7
-
-
-
-
In
vest
men
t - T
erm
Dep
osits
*14
-
5
,246
,445
-
-
-
5
,246
,445
-
-
-
-
Inve
stm
ent i
n su
bsid
iary
*11
-
-
1
,097
,900
-
-
1
,097
,900
-
-
-
-
Insu
ranc
e / r
eins
uran
ce re
ceiva
bles
- un
secu
red
and
cons
ider
ed g
ood*
16
-
-
6
,735
,521
-
-
6
,735
,521
-
-
-
-
Rei
nsur
ance
reco
verie
s ag
ains
t out
stan
ding
cla
ims*
-
-
6
,310
,890
-
-
6
,310
,890
-
-
-
-
Salva
ge re
cove
ries
accr
ued*
-
-
272
,675
-
-
272
,675
-
-
-
-
Prep
aym
ents
*17
-
-
3
,087
,278
-
-
3
,087
,278
-
-
-
-
Cas
h an
d ba
nk*
18
-
-
-
2,8
30,2
85
-
2
,830
,285
-
-
-
-
19
-
-
216
,136
2
96,8
58
-
512
,994
-
-
-
-
16,5
96,9
96
5,60
8,47
9
18
,284
,487
3,1
27,1
43
-
43,
617,
105
1
3,67
1,46
4
3
62,0
34
2,
925,
532
16
,959
,030
Fina
ncia
l lia
bilit
ies
- no
t mea
sure
d at
fair
valu
e
Und
erw
ritin
g pr
ovis
ions
:O
utst
andi
ng c
laim
s (in
clud
ing
IBN
R)*
-
-
-
-
1
1,64
1,69
5
11,
641,
695
-
-
-
-
In
sura
nce
/ rei
nsur
ance
pay
able
s *
-
-
-
-
3,89
3,76
0
3
,893
,760
-
-
-
-
Oth
er c
redi
tors
and
acc
rual
s*21
-
-
-
-
2,
179,
722
2,1
79,7
22
-
-
-
-
Dep
osits
and
oth
er lia
biliti
es*
22
-
-
-
-
69
2,93
5
692
,935
-
-
-
-
19
-
-
-
-
25
6,77
0
256
,770
-
-
-
-
-
-
-
-
1
8,66
4,88
2
18,
664,
882
-
-
-
-
* The
Com
pany
has
not
disc
lose
d th
e fa
ir va
lue
of th
ese
item
s be
caus
e th
eir c
arry
ing
amou
nts
are
a re
ason
able
app
roxim
atio
n of
fair
valu
e.
Oth
er A
sset
s of
Win
dow
Tak
aful
Ope
ratio
ns -
O
pera
tor's
Fun
d*
Tota
l liab
ilitie
s of
Win
dow
Tak
aful
Ope
ratio
ns-
Ope
rato
r's F
und*
Inve
stm
ents
of W
indo
w T
akaf
ul O
pera
tions
-
Ope
rato
r's F
und
Rup
ees
in th
ousa
ndTota
lLe
vel 1
Leve
l 2Le
vel 3
Tota
lA
vaila
ble
for s
ale
Hel
d to
m
atur
ity
Rec
eiva
bles
and
othe
r fi
nanc
ial a
sset
s
Cas
h an
dca
sheq
uiva
lent
s
Oth
erfin
anci
allia
bilit
ies
30
Ju
ne
20
20
Not
e
34
Fair
valu
e m
easu
rem
ent
of fi
nanc
ial i
nstr
umen
ts
Fa
ir va
lue
is t
he p
rice
that
wou
ld b
e re
ceiv
ed t
o se
ll an
ass
et o
r pa
id t
o tra
nsfe
r a
liabi
lity
in a
n or
derly
tra
nsac
tion
betw
een
mar
ket
parti
cipa
nts
at t
he
mea
sure
men
t dat
e.
A
fin
anci
al in
stru
men
t is
reg
arde
d as
quo
ted
in a
n ac
tive
mar
ket
if qu
oted
pric
es a
re r
eadi
ly a
nd r
egul
arly
ava
ilabl
e fro
m a
n ex
chan
ge d
eale
r, br
oker
, in
dust
ry g
roup
, pr
icin
g se
rvic
e, o
r re
gula
tory
age
ncy,
and
tho
se p
rices
rep
rese
nt a
ctua
l and
reg
ular
ly o
ccur
ring
mar
ket
trans
actio
ns o
n an
arm
's le
ngth
ba
sis.
-
In
puts
oth
er th
an q
uote
d pr
ices
incl
uded
with
in le
vel 1
that
are
obs
erva
ble
for t
he a
sset
eith
er d
irect
ly (t
hat i
s, d
eriv
ed fr
om p
rices
) (Le
vel 2
)
-
Q
uote
d pr
ices
(una
djus
ted)
in a
ctiv
e m
arke
ts fo
r ide
ntic
al a
sset
s or
liab
ilitie
s (L
evel
1)
Tr
ansf
er b
etw
een
leve
ls o
f the
fair
valu
e hi
erar
chy
are
reco
gniz
ed a
t the
end
of t
he re
port
ing
perio
d du
ring
whi
ch th
e ch
ange
s ha
ve o
ccur
red.
-
In
puts
for t
he a
sset
or l
iabi
lity
that
are
not
bas
ed o
n ob
serv
able
mar
ket d
ata
(that
is, u
nadj
uste
d) in
puts
(Lev
el 3
)
U
nder
lyin
g th
e de
finiti
on o
f fai
r va
lue
is t
he p
resu
mpt
ion
that
the
com
pany
is a
goi
ng c
once
rn a
nd t
here
is n
o in
tent
ion
or r
equi
rem
ent
to c
urta
il m
ater
ially
th
e sc
ale
of it
s op
erat
ions
or t
o un
derta
ke a
tran
sact
ion
on a
dver
se te
rms.
IF
RS
13
'Fai
r Va
lue
Mea
sure
men
t' re
quire
s th
e co
mpa
ny t
o cl
assi
fy f
air
valu
e m
easu
rem
ents
and
fai
r va
lue
hier
arch
y th
at r
efle
cts
the
sign
ifican
ce o
f th
e in
puts
use
d in
mak
ing
the
mea
sure
men
ts o
f fai
r val
ue h
iera
rchy
has
the
follo
win
g le
vels
:
Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
ADAMJEE INSURANCE 35
34.1
Fair
valu
e m
easu
rem
ent
of fi
nanc
ial i
nstr
umen
ts
Fina
ncia
l ass
ets
- m
easu
red
at
fair
valu
e
Inve
stm
ent
E
quity
sec
uriti
es-
quot
ed12
15,9
68,5
34
-
-
-
-
1
5,96
8,53
4
15,
968,
534
-
-
15,
968,
534
E
quity
sec
uriti
es-
unqu
oted
12
2
,874
,483
-
-
-
-
2,8
74,4
83
-
-
2,87
4,48
3
2,8
74,4
83
D
ebt s
ecur
ities
13
-
465
,868
-
-
-
465
,868
-
46
5,86
8
-
465,
868
19
3
2,95
8
-
-
-
-
32,9
58
32
,958
-
-
3
2,95
8
Fina
ncia
l ass
ets
- no
t m
easu
red
at
fair
valu
e
Loan
s an
d ot
her
rece
ivab
les*
15
-
-
4
77,2
64
-
-
477
,264
-
-
-
-
Inve
stm
ent -
Ter
m D
epos
its*
14
-
5
,883
,892
-
-
-
5
,883
,892
-
-
-
-
Inve
stm
ent i
n su
bsid
iary
*11
-
-
6
94,8
95
-
-
694
,895
-
-
-
-
Insu
ranc
e /
rein
sura
nce
rece
ivab
les
- un
secu
red
and
cons
ider
ed g
ood*
16
-
-
5,8
10,1
64
-
-
5
,810
,164
-
-
-
-
Rei
nsur
ance
rec
over
ies
agai
nst o
utst
andi
ng c
laim
s*
-
-
5
,931
,928
-
-
5,9
31,9
28
-
-
-
-
Sal
vage
rec
over
ies
accr
ued*
-
-
3
01,4
20
-
-
301
,420
-
-
-
-
Pre
paym
ents
*17
-
-
3
,633
,739
-
-
3,6
33,7
39
-
-
-
-
Cas
h an
d ba
nk*
18
-
-
-
1
,176
,685
-
1,
176,
685
-
-
-
-
19
-
-
3
01,4
38
9
1,89
5
-
393
,333
-
-
-
-
18,8
75,9
75
6,34
9,76
0
17
,150
,848
1,2
68,5
80
-
43,
645,
163
1
6,00
1,49
2
4
65,8
68
2,
874,
483
19,
341,
843
Fina
ncia
l lia
bili
ties
- no
t m
easu
red
at
fair
valu
e
Und
erw
ritin
g pr
ovis
ions
:O
utst
andi
ng c
laim
s (in
clud
ing
IBN
R)*
-
-
-
-
10,
367,
347
1
0,36
7,34
7
-
-
-
-
Insu
ranc
e /
rein
sura
nce
paya
bles
*
-
-
-
-
2,7
01,1
64
2
,701
,164
-
-
-
-
Oth
er c
redi
tors
and
acc
rual
s*21
-
-
-
-
1,7
19,3
34
1
,719
,334
-
-
-
-
Dep
osits
and
oth
er li
abilit
ies*
22
7
23,6
18
723
,618
-
-
-
-
19
-
-
-
-
195
,872
1
95,8
72
-
-
-
-
-
-
-
-
15,
707,
335
1
5,70
7,33
5
-
-
-
-
* Th
e C
ompa
ny h
as n
ot d
iscl
osed
the
fair
valu
e of
thes
e ite
ms
beca
use
thei
r ca
rryi
ng a
mou
nts
are
a re
ason
able
app
roxi
mat
ion
of fa
ir va
lue.
Tota
l lia
bilit
ies
of W
indo
w T
akaf
ul O
pera
tions
- O
pera
tor'
s Fu
nd*
Inve
stm
ents
of W
indo
w T
akaf
ul O
pera
tions
-
Ope
rato
r's
Fund
Oth
er A
sset
s of
Win
dow
Tak
aful
Ope
ratio
ns -
O
pera
tor'
s Fu
nd*
Rupe
es in
thou
sandTo
tal
Leve
l 1Le
vel 2
Leve
l 3To
tal
Avai
labl
efo
r sal
eHe
ld to
m
atur
ity
Rece
ivabl
esan
d ot
her
finan
cial a
sset
s
Cash
and
cash
equi
vale
nts
Othe
rfin
anci
allia
bilit
ies
31 D
ecem
ber
201
9
Note
Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
36
36 Impact of Covid - 19 on Operations
The Company followed the development of the Covid-19 corona virus and evaluated the extent to which this affected the operations in the short and long term. The Company has concluded that there are no significant implications of the pandemic over the operations of the entity.
35 Date of authorization for issue
These unconsolidated condensed interim financial statements were approved for issue on August 24, 2020 by the Board of Directors of the Company.
38.1 Corresponding figures have been rearranged and reclassified for better presentation, wherever considered necessary.
37.1 The Board of Directors of the Company in their meeting held on August 24, 2020 proposed an interim cash dividend for the six month period ended June 30, 2020 @ 12.5% i.e. Rupees 1.25/- per share (June 30, 2019 @ 10 % i.e. Rupee 1/- per share). These unconsolidated condensed interim financial statements for the six month period ended June 30, 2020 do not include the effect of this appropriation which will be accounted for in the unconsolidated financial statements for the year ending December 31, 2020.
37 Non-adjusting events after statement of financial position date
38.2 Figures have been rounded off to the nearest thousand rupees unless other wise stated.
38 General
Muhammad Ali ZebManaging Director &
Chief Executive Officer
Umer ManshaChairman
Muhammad Asim NagiChief Financial Officer
Ibrahim ShamsiDirector
Shaikh Muhammad JawedDirector
Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
ADAMJEE INSURANCE 37
Profit before tax 1,382,599 1,015,171
Taxation (479,096) (465,194)
Profit after tax 903,503 549,977
Less: Profit attributable to non-controlling interest (2,786) (21,608)
Profit attributable to ordinary shares 900,717 528,369
Unappropriated profit brought forward 13,610,534 12,521,272
Profit available for appropriation 14,511,251 13,049,641
Final cash dividend at Rs. 1.5 per share - 31 December 2019[31 December 2018 (Rupee 1.5 per share)] (525,000) (525,000)
Acquisition of non-controlling interest (58,014) -
Profit after appropriation 13,928,237 12,524,641
Earnings per share - Basic and diluted 2.57 1.51
For and on behalf of the Board
(Unaudited)Rupees in thousand
30 June 2020 30 June 2019
Rupees
30 June 2020 30 June 2019
Directors' Review to the Members on Consolidated Condensed Interim Financial InformationFor six months period ended 30 June 2020
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 2020.
The following appropriation of profit has been recommended by the Board of Directors:
(Unaudited)
Lahore: 24 August 2020 Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Ibrahim Shamsi
Director
ADAMJEE INSURANCE 39
Adamjee Insurance Company LimitedConsolidated Condensed Interim Statement of Financial PositionAs at 30 June 2020
ASSETSProperty and equipment 7 4,734,560 4,626,364Intangible assets 8 117,553 131,236Investment properties 9 1,183,026 1,204,026Investments
Equity securities 10 29,676,088 32,184,555Debt securities 11 14,853,013 8,617,474Term deposits 12 9,546,445 15,468,892
Loan secured against life insurance policies 30,977 32,785Loans and other receivables 13 768,482 716,839Insurance / reinsurance receivables 14 6,852,442 5,865,967Reinsurance recoveries against outstanding claims 6,310,890 5,931,928Salvage recoveries accrued 272,675 301,420Deferred commission expense / acquisition cost 1,192,418 1,190,146Taxation - payment less provisions - 198,833Prepayments 15 3,135,786 3,671,070Cash and bank 16 10,170,051 8,437,244
88,844,406 88,578,779Total assets of Window Takaful Operations
- Operator's Fund (Parent Company) 17 547,641 426,291TOTAL ASSETS 89,392,047 89,005,070
EQUITY AND LIABILITIESCapital and reserves attributable to the Company's equity holders
Ordinary share capital 3,500,000 3,500,000Reserves 18 2,715,139 4,552,846Unappropriated Profit 13,928,237 13,610,534Equity attributable to equity holders of the parent 20,143,376 21,663,380Non-controlling interest - 341,508Total Equity 20,143,376 22,004,888
LiabilitiesInsurance liabilities 38,550,063 36,708,430Underwriting provisions: Outstanding claims including IBNR 11,641,695 10,367,347 Unearned premium reserve 9,426,420 10,242,348 Unearned reinsurance commission 199,721 237,751Retirement benefits obligations 284,672 262,203Deferred taxation 657,303 1,425,938Premium received in advance 539,281 623,336Insurance / reinsurance payables 3,971,012 2,826,429Other creditors and accruals 19 2,852,981 3,212,270Deposits and other liabilities 829,565 898,258Taxation - payment less provisions 39,188 -
30,441,838 30,095,880Total assets of Window Takaful Operations
- Operator's Fund (Parent Company) 17 256,770 195,872TOTAL EQUITY AND LIABILITIES 89,392,047 89,005,070
Contingencies and commitments 20
The annexed notes from 1 to 32 form an integral part of these consolidated condensed interim financial statements
(Unaudited) (Audited)Rupees in thousand
30 June 2020 31 December 2019Note
Consolidated Condensed Interim Statement of Financial PositionAs at 30 June 2020
Muhammad Ali ZebManaging Director &
Chief Executive Officer
Umer ManshaChairman
Muhammad Asim NagiChief Financial Officer
Ibrahim ShamsiDirector
Shaikh Muhammad JawedDirector
40
Net insurance premium 21 5,685,125 6,569,460 12,901,524 12,822,478
Net insurance claims 22 (3,054,698) (3,644,274) (6,927,298) (7,679,840)Net commission and other acquisition costs 23 (861,468) (1,008,438) (2,035,708) (1,955,646)Insurance claims and acquisition expenses (3,916,166) (4,652,712) (8,963,006) (9,635,486)Management expenses (937,786) (1,138,995) (1,889,761) (2,208,494)Net change in insurance liabilities
(other than outstanding claims) (3,403,216) 729,640 (1,516,943) (267,489)Underwriting results (2,572,043) 1,507,393 531,814 711,009
Investment income 24 769,559 363,005 1,972,077 1,765,985Net fair value gain / (loss) on financial assets at fair value through profit or loss 2,336,409 (1,823,246) (1,444,546) (1,631,530)Net unrealized (loss) / gain on investment property (21,000) - (21,000) 21,000Rental income 22,180 1,611 32,477 3,189Other income 111,720 86,144 271,521 174,041Other expenses (18,554) (32,517) (40,825) (73,495)Results of operating activities 628,271 102,390 1,301,518 970,199
Finance cost (13) (10,392) (5,955) (12,887)Profit from Window Takaful Operations
- Operator's Fund (Parent Company) 17 51,260 31,425 87,036 57,859Profit before tax 679,518 123,423 1,382,599 1,015,171
Income tax expense (269,386) (234,963) (479,096) (465,194)
Profit / (loss) after tax for the period 410,132 (111,540) 903,503 549,977
Profit / (loss) attributable to:Equity holders of the parent 410,132 (114,328) 900,717 528,369Non-controlling interest - 2,788 2,786 21,608
410,132 (111,540) 903,503 549,977
Earnings / (loss) after tax per share 25 1.17 (0.33) 2.57 1.51
The annexed notes from 1 to 32 form an integral part of these consolidated condensed interim financial statements
Rupees in thousand
30 June 202030 June 2020 30 June 201930 June 2019
For six months period endedFor three months period endedNote
Rupees
Muhammad Ali ZebManaging Director &
Chief Executive Officer
Umer ManshaChairman
Muhammad Asim NagiChief Financial Officer
Ibrahim ShamsiDirector
Shaikh Muhammad JawedDirector
Consolidated Condensed Interim Profit and Loss Account (Un-audited)For six months period ended 30 June 2020
ADAMJEE INSURANCE 41
Profit / (loss) after tax 410,132 (111,540) 903,503 549,977
Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
Unrealized gain / (loss) on 'available-for-sale' investments - net of tax 1,230,639 (1,032,791) (1,979,168) (904,192)
Reclassification adjustment relating to 'available for sale' investments disposed off during the period - net of tax - 1,345 2,644 12,260
Other comprehensive income from window takaful operations net of tax (2,027) (441) (1,343) (18)
Effect of translation of investment in foreign branches - net 29,150 164,279 140,857 172,616
Total comprehensive income / (loss) for the period 1,667,894 (979,148) (933,507) (169,357)
Total comprehensive income / (loss) attributable to:Equity holders of the parent 1,667,894 (981,853) (936,990) (191,370)Non-controlling interest - 2,705 3,483 22,013
1,667,894 (979,148) (933,507) (169,357)
The annexed notes from 1 to 32 form an integral part of these consolidated condensed interim financial statements
Rupees in thousand
30 June 202030 June 2020 30 June 201930 June 2019
For six months period endedFor three months period ended
Consolidated Condensed Interim Statement of Comprehensive Income (Un-audited)For six months period ended 30 June 2020
Muhammad Ali ZebManaging Director &
Chief Executive Officer
Umer ManshaChairman
Muhammad Asim NagiChief Financial Officer
Ibrahim ShamsiDirector
Shaikh Muhammad JawedDirector
42
Adamjee Insurance Company LimitedConsolidated Condensed Interim Cash Flow Statement (Un-audited)For six months period ended 30 June 2020
Cash flows from operating activities
Underwriting activities
Insurance premium received 14,796,436 16,590,784Reinsurance premiums paid (2,177,991) (3,367,443)Claims paid (8,131,903) (10,683,986)Surrenders paid (16,299) (37,034)Reinsurance and other recoveries received 2,163,773 2,492,697Commissions paid (2,120,839) (2,334,625)Commissions received 240,617 262,247Other underwriting payments (2,778,508) (2,163,683)Net cash flow from underwriting activities 1,975,286 758,957
Other operating activities
Income tax paid (178,099) (186,781)Other operating payments (99,071) (26,069)Loans advanced (13,407) (35,185)Loans installments received 26,659 27,751Other operating receipts 29,621 22,895Net cash outflow for other operating activities (234,297) (197,389)
Total cash flow from all operating activities 1,740,989 561,568
Cash flows from investing activities
Profit / return received on bank deposits 1,687,866 1,047,087Income from treasury bills and Pakistan Investment Bonds 29,226 16,428Dividends received 886,567 1,040,693Rentals received 29,609 2,431Payment for investments/ investment properties (107,478,780) (107,834,741)Loan to / from policy holder 1,530 (3,665)Proceeds from disposal investments/ investment properties 99,946,192 106,287,799Fixed capital expenditure - operating fixed assets (243,124) (522,431)Fixed capital expenditure - intangible assets (12,913) -Proceeds from disposal of operating fixed assets 11,877 16,704Total cash outflow for / cash flow from investing activities (5,141,950) 50,305
Cash flows from financing activities
Payments against lease liabilities (17,792) (46,506)Dividends paid (490,345) (518,283)Loan obtained 356,905 -Total cash outflow for financing activities (151,232) (564,789)
Net cash outflow for / flow from all activities (3,552,193) 47,084Cash and cash equivalents at beginning of period 18,022,244 16,543,097Cash and cash equivalents at end of period 14,470,051 16,590,181
Rupees in thousand
30 June 2020 30 June 2019
For six months period ended
Consolidated Condensed Interim Cash Flow Statement (Un-audited)For six months period ended 30 June 2020
ADAMJEE INSURANCE 43
Reconciliation to profit and loss account
Operating cash flows 1,740,989 561,568Depreciation and amortization expense (201,263) (180,114)Provision for retirement benefit obligations (25,358) (23,314)Finance cost (13,558) (12,887)Other income - bank and term deposits 155,116 90,575Gain / (loss) on disposal of operating fixed assets 4,597 (3,955)Provision for doubtful balances - (97,352)Rental income 35,238 3,189Increase in assets other than cash 1,128,178 2,337,598Increase in liabilities other than running finance (3,088,074) (670,955)Gain on disposal of investments (114,119) 284,626Decrease / (increase) in unearned premium 815,928 (1,465,113)(Decrease) / Increase in loans (13,252) 7,435Income taxes paid 157,070 142,392Increase in tax liabilities (465,612) (421,503)Provision for impairment in value of 'available-for-sale' investments (203,239) (490,685)Dividend and other investment income 902,770 429,038Surplus on revaluation of investment 3,306 1,575Profit from Window Takaful Operations 87,036 57,859
Profit after tax 905,753 549,977
Cash for the purposes of the cash flows statement consists of:
Cash and cash equivalents 14,590 10,856Current and saving accounts 10,155,461 8,611,325Term deposits 4,300,000 7,968,000
Total cash and cash equivalents 14,470,051 16,590,181
The annexed notes from 1 to 32 form an integral part of these consolidated condensed interim financial statements
Rupees in thousand
30 June 2020 30 June 2019
For six months period ended
Consolidated Condensed Interim Cash Flow Statement (Un-audited)For six months period ended 30 June 2020
Muhammad Ali ZebManaging Director &
Chief Executive Officer
Umer ManshaChairman
Muhammad Asim NagiChief Financial Officer
Ibrahim ShamsiDirector
Shaikh Muhammad JawedDirector
44
Balance as at 31 December 2018 - (Audited) 3,500,000 22,859 3,764 614,062 2,204,097 936,500 12,521,272 19,802,554 288,797 20,091,351
Profit for the period 01 January 2019 to 30 June 2019 - - - - - - 528,369 528,369 21,608 549,977Other comprehensive income for the period 01 January 2019 to 30 June 2019 - - - 172,616 (892,355) - - (719,739) 405 (719,334)
Total comprehensive income for the period - - - 172,616 (892,355) - 528,369 (191,370) 22,013 (169,357)
Transactions with owners of the CompanyFinal cash dividend at Rs. 1.5 per share - 31 December 2018 - - - - - - (525,000) (525,000) - (525,000)
Balance as at 30 June 2019 - (Unaudited) 3,500,000 22,859 3,764 786,678 1,311,742 936,500 12,524,641 19,086,184 310,810 19,396,994
Profit for the period 01 July 2019 to 31 December 2019 - - - - - - 1,443,676 1,443,676 36,428 1,480,104Other comprehensive income for the period 01 July 2019 to 31 December 2019 - - - (111,742) 1,603,045 - (7,783) 1,483,520 (5,730) 1,477,790Total comprehensive income for the period - - - (111,742) 1,603,045 - 1,435,893 2,927,196 30,698 2,957,894
Transactions with owners of the CompanyInterim cash dividend at Rs. 1.0 per share - 30 June 2019 - - - - - - (350,000) (350,000) - (350,000)
Balance as at 31 December 2019 - (Audited) 3,500,000 22,859 3,764 674,936 2,914,787 936,500 13,610,534 21,663,380 341,508 22,004,888
Profit for the period 01 January 2020 to 30 June 2020 - - - - - - 900,717 900,717 2,786 903,503Other comprehensive income for the period 01 January 2020 to 30 June 2020 - - - 140,857 (1,978,564) - - (1,837,707) 697 (1,837,010)
Total comprehensive income for the period - - - 140,857 (1,978,564) - 900,717 (936,990) 3,483 (933,507)
3,500,000 22,859 3,764 815,793 936,223 936,500 14,511,251 20,726,390 344,991 21,071,381
Transactions with owners of the CompanyAcquisition of Non-controlling interest - - - - - - (58,014) (58,014) (344,991) (403,005)Final cash dividend at Rs. 1.5 per share - 31 December 2019 - - - - - - (525,000) (525,000) - (525,000)
Balance as at 30 June 2020 - (Unaudited) 3,500,000 22,859 3,764 815,793 936,223 936,500 13,928,237 20,143,376 - 20,143,376
The annexed notes from 1 to 32 form an integral part of these consolidated condensed interim financial statements
Total Equity Non-controlling interest
Issued,subscribed and paid up
Reserve for exceptional
losses
Investment fluctuation
reserve
Exchange translation
reserve
Fair Value Reserve
General reserve
Retained earnings
Revenue reservesCapital reserves
Rupees in thousand
Share capital Equity
attributable to equity holders of
the parent
Consolidated Condensed Interim Statement of Changes in EquityFor six months period ended 30 June 2020
Muhammad Ali ZebManaging Director &
Chief Executive Officer
Umer ManshaChairman
Muhammad Asim NagiChief Financial Officer
Ibrahim ShamsiDirector
Shaikh Muhammad JawedDirector
ADAMJEE INSURANCE 45
1 The group and its operations:
1.1 The group comprises of:
Parent CompanyAdamjee Insurance Company Limited 100% 100%
Subsidiary CompanyAdamjee Life Assurance Company Limited 100% 74.28%
(Holding percentage)
2020 2019
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
- Accident and Health Business
The Parent 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.
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:
Adamjee Insurance Company Limited (Parent Company)
The shareholders of the Parent Company in their Extra Ordinary General Meeting (EOGM) held on February 25, 2019 had approved acquisition of 24,059,855 ordinary shares at par value of Rs. 10 each of Non controlling interest of the Subsidiary Company from IVM intersurer B.V. at share price of Rs.16.68 per share (approx.), for an aggregate price of Rs. 401,200 thousands. The Parent Company after obtaining the approval for payment of State Bank of Pakistan credited the sum to IVM's bank account on February 25, 2020. After the acquisition of aforementioned shares (representing 25.72%) Adamjee Life Assurance Company Limited has become a wholly owned subsidiary of the Parent Company.
The Parent Company also operates branches in the United Arab Emirates (UAE) and the Export Processing Zone (EPZ).
- Individual Life Non-unitized Investment Linked Business
- Conventional Business
Adamjee Life Assurance Company Limited (Subsidiary Company)
The Parent Company is a public limited company incorporated in Pakistan on September 28, 1960 under the repealed Companies Act, 1913 (now the Companies Act, 2017). The Parent Company is listed on Pakistan Stock Exchange limited and is principally engaged in the general insurance business. The registered office of the Parent Company is situated at Adamjee House Building, 80/A Block E-1, Main Boulevard Gulberg-III, Lahore.
- Individual Life Unit Linked Business
The Subsidiary Company was incorporated in Pakistan on August 04, 2008 as a public unlisted company under the Companies Act, 2017. The Subsidiary Company started its operations from April 24, 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 Adamjee House, 3rd and 4th Floor, I.I Chundrigar Road, Karachi. The Subsidiary Company was an associate of IVM Intersurer B.V having a holding of 25.72% since February 25, 2020 in the share capital of the Subsidiary Company. IVM Intersurer B.V. 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.
- Individual Family Takaful Business
46
3 Basis of measurement
These consolidated financial statements have been prepared under historical cost convention except for certain foreign currency translation adjustments, certain financial instruments carried at fair value, and retirement benefit obligations under employee benefits carried at present value.
The Subsidiary Company was granted authorization on May 04, 2016 under Rule 6 of Takaful Rules, 2012 to undertake Takaful Window Operations in respect of family takaful products by the SECP and subsequently the Subsidiary Company commenced Window Takaful Operations from July 14, 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 December 22, 2015 under a Waqf deed executed by the Subsidiary Company with the ceded amount of Rs. 500,000. The ceded 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 policy holders for the management of Takaful operations, investment of policy holders' funds and shareholders' funds as approved by the Shariah Advisor appointed by the Subsidiary Company.
- International Financial Reporting Standards ('IFRS') issued by the International Accounting Standards Board ('IASB') as are notified under the Companies Act, 2017; and
In case requirements differ, the provision of and directives issued under the Companies Act, 2017, the Insurance Ordinance, 2000 the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012 shall prevail.
Items included in the consolidated financial statements are measured using the currency of the primary economic environment in which the Group operates ('the functional currency'). The financial statements are presented in Pak Rupees, which is the Group's functional and presentation currency. All the financial information presented in Pak Rupees has been rounded off to the nearest thousand in rupee, unless otherwise stated.
This consolidated condensed interim financial information of the Group for the six months period ended 30 June 2020 has been prepared in accordance with accounting and reporting standards as applicable in Pakistan. The accounting and reporting standards comprise of:
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 2019. Comparative condensed interim statement of financial position is stated from annual audited financial statements as of 31 December 2019, 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 condensed interim financial information of the Group for the six months period ended 30 June 2019.
4 Accounting policies
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 2019.
- 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.
2 Basis of preparation and statement of compliance
As per the requirements of the SECP Takaful Rules, 2012 and SECP Circular No. 25 of 2015 dated July 09, 2015, the assets, liabilities and profit and loss account of the Operator's Fund of the General Takaful Operations of the Parent Company have been presented as a single line item in the consolidated statement of financial position and profit and loss account respectively.
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
ADAMJEE INSURANCE 47
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.
There is no significant impact of such changes on this condensed interim financial information of the Group.
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 2019.
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.
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 2019.
6 Insurance and Financial risk management
5 Use of estimates and judgments
The Group 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 2020, as mentioned in the financial statement for the year ended 31 December 2019.
7 Property and equipment
Opening balance - net book value 4,560,942 2,481,588Additions during the period / year 7.1 30,714 2,056,756Right of use asset - initial application of IFRS - 16 - 373,801
Less:Book value of disposals during the period / year 7.2 (7,280) (67,645)Depreciation charged during the period / year (177,488) (308,034)Net book value of transfers to Investment property - (23,218)Exchange differences and other adjustments 42,329 47,694
(142,439) (351,203)4,449,217 4,560,942
Capital work in progress 285,343 65,4224,734,560 4,626,364
7.1 Additions during the period / year - cost
Building - Freehold - 1,364,391Furniture and fixtures 5,764 78,175Motor vehicles 8,768 113,408Machinery and equipment 11,487 437,606Computer equipment 4,184 30,814Leasehold Improvements 511 27,173Right of use asset - Buildings - 5,189
30,714 2,056,756
(Unaudited) (Audited)Rupees in thousand
30 June 2020 31 December 2019Note
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
48
7.2 Written down values of property and equipment disposed off during the period / year
Furniture and fixtures - 29,637Motor vehicles 7,280 22,948Machinery and equipment - 8,754Computer equipment - -Leasehold Improvements - 6,306
7,280 67,645
8 Intangible assets
Opening balance - net book value 131,236 160,602Additions during the period 5,403 14,998
Book value of disposals during the period - -Amortization charged during the period (23,776) (50,086)Exchange differences and other adjustments 4,690 5,722
(19,086) (44,364)117,553 131,236
9 Investment Properties
Opening balance - net book value 1,204,026 855,394Additions and capital improvements - 315,334Unrealized fair value (loss)/gain (21,000) 33,298
1,183,026 1,204,026
(Unaudited) (Audited)Rupees in thousand
30 June 2020 31 December 2019Note
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
ADAMJEE INSURANCE 49
10 Investment in equity securities
Available-for-sale
Related parties
Listed shares 8,936,566 (265,237) (112,088) 8,559,241 9,086,355 (290,808) 2,098,765 10,894,312Unlisted shares 748,226 - 14,971 763,197 698,226 - 13,922 712,148
9,684,792 (265,237) (97,117) 9,322,438 9,784,581 (290,808) 2,112,687 11,606,460
Others
Listed shares 6,819,051 (1,942,571) 179,458 5,055,938 5,686,610 (1,713,761) 759,400 4,732,249Unlisted shared 925,360 - 1,236,975 2,162,335 925,360 - 1,236,975 2,162,335Mutual Funds 45,592 - (8,413) 37,179 364,265 - 68 364,333NIT Units 161 - 544 705 161 - 635 796
7,790,164 (1,942,571) 1,408,564 7,256,157 6,976,396 (1,713,761) 1,997,078 7,259,713
Total - available for sale 17,474,956 (2,207,808) 1,311,447 16,578,595 16,760,977 (2,004,569) 4,109,765 18,866,173
Fair value through profit and loss
Related parties
Listed shares 1,240,483 - - 1,240,483 1,633,771 - - 1,633,771Mutual Funds 4,860,858 - - 4,860,858 5,014,226 - - 5,014,226
6,101,341 - - 6,101,341 6,647,997 - - 6,647,997Others
Listed shares 5,922,388 - - 5,922,388 5,828,985 - - 5,828,985Mutual Funds 1,073,764 - - 1,073,764 841,400 - - 841,400
6,996,152 - - 6,996,152 6,670,385 - - 6,670,385
Total - fair value through profit and loss 13,097,493 - - 13,097,493 13,318,382 - - 13,318,382
Grand Total 30,572,449 (2,207,808) 1,311,447 29,676,088 30,079,359 (2,004,569) 4,109,765 32,184,555
Rupees in thousand
31 December 2019 (Audited)30 June 2020 (Unaudited)
Impairment/ provision
Impairment/ provision
Unrealized Gain / (loss)
Unrealized Gain / (loss)
Carrying value
Carrying value
Cost Cost
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
50
12 Investments in Term Deposits
Held to maturity
Deposits maturing within 12 months
Inside Pakistan - related parties 346,811 156,811 - others 4,135,066 9,610,066
4,481,877 9,766,877Outside Pakistan - related parties 1,372,533 1,264,698 - others 3,641,925 4,387,207
5,014,458 5,651,905Deposits maturing after 12 months 9,496,335 15,418,782
Inside Pakistan - related parties 2,000 2,000 - others 48,110 48,110
50,110 50,110
12.1 9,546,445 15,468,892
11 Investments in debt securities
Held to maturity
Treasury Bills 264,470 370,491Pakistan Investment Bonds 97,564 95,377
362,034 465,868Available for sale
Treasury Bills 622,566 558,153Pakistan Investment Bonds 103,285 93,684
725,851 651,837Fair value through profit and loss
Term Finance Certificate 1,338,148 1,588,848Advance against purchase of term finance certificate 100,000 50,000Corporate sukuks 2,101,011 1,135,121Treasury Bills 9,626,743 3,828,677Pakistan Investment Bonds 599,226 897,123
13,765,128 7,499,769
14,853,013 8,617,474
(Unaudited) (Audited)Rupees in thousand
30 June 2020 31 December 2019Note
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
12.1 These include fixed deposits amounting to Rs. 4,117,599 thousands (AED 90,000 thousands) [2019: Rs. 4,848,009 thousands (AED 115,000 thousands)] kept in accordance with the requirements of Insurance Regulations applicable to the United Arab Emirates (UAE) branches of the Parent Company for the purpose of carrying on business in (UAE). These also include liens against cash deposits of Rs. 231,987 thousands (2019: Rs. 231,987 thousands) with banks in Pakistan essentially in respect of guarantees issued by the banks on behalf of the Parent Company for claims under litigation filed against the Parent Company, bid bond guarantees and guarantee to Meezan Bank Limited (MBL) against the loan provided by MBL to Hyundai Nishat Motor (Private) Limited, a related party of the Group.
ADAMJEE INSURANCE 51
13 Loans and other receivables - considered goodRent receivable 12,924 7,295Accrued income 211,822 351,017Security deposits 90,235 92,526Advances to employees and suppliers 256,300 152,012Advance agent commission 1,003 3,003Loans to employees 44,290 56,318Receivable against the sale of investment 58,064 -Receivable from related parties - 5Other receivables 93,844 54,663
768,482 716,839
14 Insurance / reinsurance receivables - unsecured and considered goodDue from insurance contract holders 6,902,619 5,786,646Provision for impairment of receivables from
insurance contract holders (922,286) (868,586)5,980,333 4,918,060
Due from other insurers / other reinsurers 1,073,411 1,149,209Provision for impairment of due from other
insurers / reinsurers (201,302) (201,302)872,109 947,907
6,852,442 5,865,967
15
14.1
Prepayments
Due from insurance contact holders include an amount Rs. 299,484 thousands (2019: Rs. 221,567 thousands) held with related parties.
Prepaid reinsurance premium ceded 2,937,772 3,500,512Prepaid rent 15,311 12,488Prepaid miscellaneous expenses 182,703 158,070
3,135,786 3,671,07016 Cash and bank
Cash and cash equivalents
Inside PakistanCash in hand 917 819 Policy & Revenue stamps, Bond papers 12,939 24,993
13,856 25,812 Outside PakistanCash in hand 734 -
14,590 25,812 Cash at bank
Inside Pakistan 16.1
Current accounts 500,734 289,356 Savings accounts 7,965,319 8,057,231
8,466,053 8,346,587 Outside Pakistan
Current accounts 1,683,424 59,333 Savings accounts 5,984 5,512
1,689,408 64,845
10,155,461 8,411,432
10,170,051 8,437,244
(Unaudited) (Audited)
Rupees in thousand
30 June 2020 31 December 2019
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
52
17 Window Takaful Operations - Parent Company
Operator's Fund
Assets
Cash and bank deposits 296,858 91,895Qard-e-Hasna to Participant Takaful Fund 146,460 146,460Investments 34,647 32,958Intangible assets 16,107 17,650Property and equipment 17,589 17,733Current assets - others 35,980 119,595Total Assets 547,641 426,291
Total Liabilities 256,770 195,872
Wakala income 199,242 155,995Commission expense (52,440) (46,721)Management expenses (68,549) (59,394)Investment income 3,584 1,345Other income 5,190 8,363Mudarib's share of PTF investment income 1,989 -Other Expenses (1,980) (1,729)Profit before tax 87,036 57,859Provision for tax (25,241) (16,785)Profit from Window Takaful Operations 61,795 41,074
18 Reserves
Capital reservesReserves for exceptional losses 22,859 22,859Investment fluctuation reserves 3,764 3,764Exchange translation reserves 815,793 674,936Fair value reserve 936,223 2,914,787
1,778,639 3,616,346Revenue reserves
General reserves 936,500 936,500
2,715,139 4,552,846
(Unaudited) (Audited)
Rupees in thousand
30 June 2020 31 December 2019
Rupees in thousand
30 June 2020 30 June 2019
For six months period ended
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
16.1 Cash at bank includes an amount of Rs. 1,941,654 thousands (2019: Rs. 1,835,434 thousands) held with MCB Bank Limited, a related party of the Group.
16.2 Lien of Rs. 440,000 thousands (2019: Rs. 291,000 thousands) is marked on cash deposits in saving accounts against SBLC (Standby Letter of Credit) issued in favor of Meezan Bank Limited on behalf of Hyundai Nishat Motor (Private) Limited.
Details of total assets, total liabilities and segment disclosure of window takaful operations of the Parent Company are stated in the annexed condensed interim financial information.
(Unaudited) (Audited)
Rupees in thousand
30 June 2020 31 December 2019
ADAMJEE INSURANCE 53
19 Other creditors and accruals
Agents commission payable 933,252 1,039,000Payable against the purchase of investment 55,386 847,474Federal Excise Duty / Sales Tax / VAT 286,760 50,149Federal Insurance Fee payable 43,655 33,785Payable to related parties 4,340 7,131Workers' welfare fund 76,485 76,485Tax deducted at source 149,418 104,056Accrued expenses 266,402 386,051Unpaid and unclaimed dividend 160,484 125,829Payable to employees' provident fund 2,654 2,676Loans and borrowings 332,219 -Deferred Grant Income 24,687 -Sundry creditors 517,239 539,634
2,852,981 3,212,270
(Unaudited) (Audited)
Rupees in thousand
30 June 2020 31 December 2019
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
Contingencies and commitments
20 Contingencies and commitments
Parent Company
There has been no significant change in the status of contingencies as reported in the preceding published consolidated annual financial statements of the Parent Company for the year ended December 31, 2019 except for the following.
Contingencies
- The Parent Company has issued letter of guarantees amounting to AED 246,500 amounting to Rs.11,278 thousands (2019: AED 449,000 amounting to Rs. 18,928 thousands) relating to UAE branch of the Parent Company.
Commitments
Commitments represent ljarah rentals for vehicles payable in future period.
There were no contingencies as at June 30, 2020.
- The Parent Company has provided a guarantee to Meezan Bank Limited (MBL) against the loan provided by MBL to Hyundai Nishat Motor (Private) Limited, a related party, amounting to Rs. 1,209,000 thousands (2019: Rs. 841,000 thousands).
Subsidiary Company
Not later than one year 30,373
22,543
Later than one year and not later than five years 83,328
58,045
113,701
80,588
(Unaudited) (Audited)
Rupees in thousand
30 June 2020 31 December 2019
54
Note
21 Net insurance premium
Parent Company
Written gross premium 5,181,094 5,873,553 9,743,523 12,129,819Unearned premium reserve opening 9,235,451 10,802,642 10,242,348 10,100,901Unearned premium reserve closing (9,426,420) (11,566,014) (9,426,420) (11,566,014)Currency translation effect 9,368 606,309 304,327 671,251
Premium earned 4,999,493 5,716,490 10,863,778 11,335,957
Reinsurance premium ceded (2,147,625) (2,051,234) (3,224,284) (4,302,427)Prepaid reinsurance premium opening (2,445,880) (3,254,355) (3,500,512) (2,866,980)Prepaid reinsurance premium closing 2,937,772 3,543,053 2,937,772 3,543,053Currency translation effect (1,171) (7,019) (8,253) (7,471)
Reinsurance expense (1,656,904) (1,769,555) (3,795,277) (3,633,825)
21.1 & 21.2 3,342,589 3,946,935 7,068,501 7,702,132
Subsidiary CompanyRegular premium / contributions individual policies 21.3- first year 319,018 814,841 1,078,722 1,546,577- second year renewal 577,510 472,941 1,222,165 951,288- subsequent years renewal 1,094,014 1,132,601 2,285,357 2,119,718Single premium / contributions individual policies 21.3 361,399 196,796 1,231,112 506,186Group policies without cash values 84,398 106,102 248,506 247,468Less: Experience refund (9,536) (827) (10,137) (10,492)
2,426,803 2,722,454 6,055,725 5,360,745Less: reinsurance premiums / retakaful contributions ceded
On individual life first year business (7,427) (14,909) (10,719) (23,382)On individual life second year business (7,777) (12,112) (11,001) (28,387)On individual life subsequent renewal business (29,529) (40,599) (55,231) (70,267)On single premium individual policies (464) - (2,255) -On group policies (39,070) 86,054 (143,889)Profit commission on reinsurance - (118,363) 393 (118,363)
(84,267) (99,929) (222,702) (240,399)
2,342,536 2,622,525 5,833,023 5,120,346
5,685,125 6,569,460 12,901,524 12,822,478
21.1 Net insurance premium - Business underwritten inside PakistanWritten gross premium 3,972,209 4,009,414 6,788,167 8,129,229Unearned premium reserve opening 5,111,264 6,030,336 6,197,501 5,508,453Unearned premium reserve closing (5,861,254) (6,550,695) (5,861,254) (6,550,695)
Premium earned 3,222,219 3,489,055 7,124,414 7,086,987
Reinsurance premium ceded (2,090,864) (2,000,953) (3,113,291) (4,187,650)Prepaid reinsurance premium opening (2,344,222) (3,220,928) (3,425,355) (2,838,973)Prepaid reinsurance premium closing 2,818,671 3,480,705 2,818,671 3,480,705
Reinsurance expense (1,616,415) (1,741,176) (3,719,975) (3,545,918)
1,605,804 1,747,879 3,404,439 3,541,069
Rupees in thousand
30 June 2020 30 June 2019
For six months period ended
30 June 2020 30 June 2019
For three months period ended
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
-
ADAMJEE INSURANCE 55
Note
21.2 Net insurance premium - Business underwritten outside Pakistan
Written gross premium 1,208,885 1,864,139 2,955,356 4,000,590Unearned premium reserve opening 4,124,187 4,772,306 4,044,847 4,592,448Unearned premium reserve closing (3,565,166) (5,015,319) (3,565,166) (5,015,319)Currency translation effect 9,368 606,309 304,327 671,251
Premium earned 1,777,274 2,227,435 3,739,364 4,248,970
Reinsurance premium ceded (56,761) (50,281) (110,993) (114,777)Prepaid reinsurance premium opening (101,658) (33,427) (75,157) (28,007)Prepaid reinsurance premium closing 119,101 62,348 119,101 62,348Currency translation effect (1,171) (7,019) (8,253) (7,471)
Reinsurance expense (40,489) (28,379) (75,302) (87,907)1,736,785 2,199,056 3,664,062 4,161,063
21.3 Individual policies are those underwritten on an individual basis.
Rupees in thousand 30 June 2020 30 June 2019
For six months period ended
30 June 2020 30 June 2019
For three months period ended
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
22 Net insurance claims expense
Parent Company
Claims paid 2,339,146 3,489,494 5,416,708 7,207,715Outstanding claims including IBNR closing 11,641,695 10,669,875 11,641,695 10,669,875Outstanding claims including IBNR opening (11,191,266) (10,193,465) (10,367,347) (10,461,975)Currency translation effect (40,650) (727,786) (514,150) (800,778)Claims expense 2,748,925 3,238,118 6,176,906 6,614,837Reinsurance and other recoveries received (982,050) (1,110,205) (2,020,193) (2,467,176)Reinsurance and other recoveries in respect of outstanding claims closing (6,583,565) (6,227,154) (6,583,565) (6,227,154)Reinsurance and other recoveries in respect of outstanding claims opening 6,523,405 6,178,315 6,233,348 6,397,245Currency translation effect 17,495 378,020 260,831 417,133Reinsurance and other recoveries revenue (1,024,715) (781,024) (2,109,579) (1,879,952)
22.1 & 22.2 1,724,210 2,457,094 4,067,327 4,734,885
Subsidiary Company
Gross claimsClaims under individual policies - by death 32,496 60,051 154,511 133,475 - by insured event other than death 400 (800) 1,100 6,275 - by maturity 618,366 90,962 785,941 423,523 - by surrender 646,867 1,054,951 1,881,592 2,338,202Total gross individual policy claims 1,298,129 1,205,164 2,823,144 2,901,475Claims under group policies - by death 111,183 76,230 223,570 232,824 - by insured event other than death (1,497) (6,500) 3,472 (22,671)Total gross group policy claims 109,686 69,730 227,042 210,153Claim related expenses 204 1,919 1,979 3,885Total gross claims 1,408,019 1,276,813 3,052,165 3,115,513
Less: Reinsurance recoveries - on individual claims (2,376) 36,086 31,769 20,122 - on group claims 79,907 53,547 160,425 150,436
77,531 89,633 192,194 170,5581,330,488 1,187,180 2,859,971 2,944,9553,054,698 3,644,274 6,927,298 7,679,840
56
Note
Note
22.1 Net insurance claims expense - Business underwritten inside Pakistan
Claim paid 1,050,321 1,441,677 2,188,705 3,472,180Outstanding claims including IBNR closing 5,057,585 4,572,871 5,057,585 4,572,871Outstanding claims including IBNR opening (4,507,781) (4,823,914) (4,398,967) (5,386,215)
Claim expense 1,600,125 1,190,634 2,847,323 2,658,836
Reinsurance and other recoveries received (428,128) (468,627) (572,528) (1,477,221)Reinsurance and other recoveries in respect of outstanding claims closing (3,410,063) (3,046,533) (3,410,063) (3,046,533)Reinsurance and other recoveries in respect of outstanding claims opening 3,114,792 3,295,122 2,948,471 3,769,658Reinsurance and other recoveries revenue (723,399) (220,038) (1,034,120) (754,096)
876,726 970,596 1,813,203 1,904,740
22.2 Net insurance claims expense - Business underwritten outside Pakistan
Claim Paid 1,288,825 2,047,817 3,228,003 3,735,535Outstanding claims including IBNR closing 6,584,110 6,097,004 6,584,110 6,097,004Outstanding claims including IBNR opening (6,683,485) (5,369,551) (5,968,380) (5,075,760)Currency translation effect (40,650) (727,786) (514,150) (800,778)
Claim expense 1,148,800 2,047,484 3,329,583 3,956,001
Reinsurance and other recoveries received (553,922) (641,578) (1,447,665) (989,955)Reinsurance and other recoveries in respect of outstanding claims closing (3,173,502) (3,180,621) (3,173,502) (3,180,621)Reinsurance and other recoveries in respect of outstanding claims opening 3,408,613 2,883,193 3,284,877 2,627,587Currency translation effect 17,495 378,020 260,831 417,133
Reinsurance and other recoveries revenue (301,316) (560,986) (1,075,459) (1,125,856)
847,484 1,486,498 2,254,124 2,830,145
Rupees in thousand
30 June 2020 30 June 2019
For six months period ended
30 June 2020 30 June 2019
For three months period ended
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
Rupees in thousand
30 June 2020 30 June 2019
For six months period ended
30 June 2020 30 June 2019
For three months period ended
ADAMJEE INSURANCE 57
Note
598,965 742,775 1,180,699 1,231,1401,197,363 799,779 1,190,146 788,431
(1,192,418) (1,075,282) (1,192,418) (1,075,282)1,532 77,457 65,669 84,718
605,442 544,729 1,244,096 1,029,007
(154,240) (173,192) (240,617) (262,247)(201,121) (195,759) (237,751) (221,371)199,721 237,103 199,721 237,103
8 (603) (260) (661)
(155,632) (132,451) (278,907) (247,176)
23.1 & 23.2 449,810 412,278 965,189 781,831
138,335 355,476 476,831 695,63030,933 29,615 65,340 56,35325,202 30,725 53,118 55,1757,603 4,691 25,866 11,168
61,029 79,491 157,529 158,182
263,102 499,998 778,684 976,508
3,444 7,454 24,118 17,6521,409 1,215 1,887 2,6734,853 8,669 26,005 20,325
143,703 87,493 265,830 176,982
411,658 596,160 1,070,519 1,173,815
861,468 1,008,438 2,035,708 1,955,646
307,625 384,847 508,389 578,880295,578 264,800 352,673 297,403
(400,172) (417,247) (400,172) (417,247)
203,031 232,400 460,890 459,036
(152,749) (171,507) (236,579) (257,151)(197,095) (191,511) (236,381) (218,690)195,331 231,646 195,331 231,646
(154,513) (131,372) (277,629) (244,195)
48,518 101,028 183,261 214,841
23 Net commission and other acquisition costs
Parent Company
Commission paid or payableDeferred commission expense openingDeferred commission expense closingCurrency translation effect
Net commission
Commission received or recoverableUnearned reinsurance commission openingUnearned reinsurance commission closingCurrency translation effect
Commission from reinsurance
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
Commission paid or payableDeferred commission expense openingDeferred commission expense closing
Net commission
Commission received or recoverableUnearned reinsurance commission openingUnearned reinsurance commission closing
Commission from reinsurance
Rupees in thousand
30 June 2020 30 June 2019
For six months period ended
30 June 2020 30 June 2019
For three months period ended
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
58
24 Investment incomeBusiness underwritten Inside PakistanIncome from equity securitiesDividend Income- Available for sale- Fair value through profit or loss
Income from debt securities Return on debt securities- Fair value through profit or loss- Held to maturity
Return on government securities - Available for Sale- Fair value through profit or loss- Held to maturity
Income from term deposit receipts - Held to maturity
Tax on dividend under final tax regime
Net realized fair value gains on investmentsAvailable for sale- Equity securities- Government securities
Fair value through profit or loss- Equity securities- Debt securities- Government securities
Provision for impairment in value of 'available-for-sale' investments (505,385)
Business underwritten Outside PakistanIncome from equity securitiesDividend income
- Available for Sale
Net realized gains on investments- Available for Sale
Return on term deposits- Held to maturity
Total investment income
319,351163,452482,803
109,210-
109,210
12,351361,303
8,519382,173
77,37677,376(1,337)(1,337)
---
(318,295)(222)
200,559(117,958)
(203,239)729,028
4040
--
40,49140,49140,531
769,559
325,969164,555490,524
89,073-
89,073
1,853182,49211,620
195,965
147,930147,930(35,638)(35,638)
2,1082,6694,777
(56,684)-
(25,021)(81,705)
305,541
15,42715,427
--
42,03742,03757,464
363,005
670,443242,156912,599
230,119
230,119
25,346794,16021,705
841,211
224,048224,048
(1,347)(1,347)
3,533-
3,533
(400,482)(222)
282,861(117,843)
(203,239)1,889,081
9494
191191
82,71182,71182,996
1,972,077
744,427284,407
1,028,834
171,169
171,169
10,903322,95721,910
355,770
349,465349,465(35,780)(35,780)
2,5682,6455,213
305,398-
(25,985)279,413
(490,685)1,663,399
29,17029,170
--
73,41673,416
102,5861,765,985
652,260491,028
(658,035)84,718
569,971(5,096)(2,681)5,457(661)
(2,981)566,990
23.2 Net commission and other acquisition costs - Business underwritten outside Pakistan
Commission paid or payableDeferred commission expense openingDeferred commission expense closingCurrency translation effectNet commissionCommission received or recoverableUnearned reinsurance commission openingUnearned reinsurance commission closingCurrency translation effectCommission from reinsurance
291,340 357,928 672,310901,785 534,979 837,473
(792,246) (658,035) (792,246)1,532 77,457 65,669
402,411 312,329 783,206(1,491) (1,685) (4,038)(4,026) (4,248) (1,370)4,390 5,457 4,390
8 (603) (260)(1,119) (1,079) (1,278)
401,292 311,250 781,928
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
Rupees in thousand
30 June 2020 30 June 2019
For six months period ended
30 June 2020 30 June 2019
For three months period ended
- -
ADAMJEE INSURANCE 59
25 Earnings per share - basic and diluted
There is no dilutive effect on the basic earnings per share which is based on:
Profit after tax for the period attributable to ordinary shareholders 410,132 (114,328) 900,717 528,369
Weighted average number of ordinary shares outstanding 350,000,000 350,000,000 350,000,000 350,000,000
Earnings per share - basic and diluted 1.17 (0.33) 2.57 1.51
Parent Company
i) TransactionsPremiums underwritten 708,012 787,145Premiums received 587,676 725,376Claims paid 322,950 314,925Commission Paid 18,859 52,015Rent paid 6,085 4,930Rent received 7,776 -Dividends received 406,532 391,050Dividends paid 106,292 106,292Income on bank deposits 52,910 20,803Investments made 50,000 250,000Fee / service charges paid 4,739 1,604Fee / service charges received - -Charge in respect of gratuity expense 18,064 16,821Contribution to Employees'
Provident Fund 17,597 16,805Compensation paid to Key
management personnel 686,558 656,890
Rupees in thousand
30 June 2020 30 June 2019
For six months period ended
Rupees in thousand
30 June 2020 30 June 2019
For six months period ended
30 June 2020 30 June 2019
For three months period ended
The Group 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.
26 Transactions with related parties
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:
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
Number of shares
Rupees
60
Subsidiary Company
i) TransactionsAssociated undertakingsPremium written 18,328 25,597Claims expense 71,946 21,044Commission and other incentives in respect of bancassurance 529,845 751,041Profit on bank deposits 59,226 119,084Bank charges 940 815Investments purchased 2,011,890 3,476,981Investments sold 2,081,036 2,618,588Dividend income 145,077 126,109Reinsurance claim recoveries - 7,594Reinsurance premium ceded - 1,889
Other related partiesPremium written 4,699 30,952Claims expense 1,379 8,559Investment advisor fee 12,173 9,665Trustee fee 5,038 4,920
Transactions with key management personnelPremium written 50 50
ii) Period end balances
Associated undertakingsPremium due but unpaid 9,028 6,526Premium received in advance 219 -Bank deposits 1,644,806 1,475,870Investments held 6,377,247 6,799,087Accrued Income 102 101Commission payable ` 187,772̀ 337,441Claims payable 3,020 2,370Reinsurance receivable 3,031 1,874
Other related partiesPremium due but unpaid 3,154 3,027Remuneration payable for the management of discretionary
Provident Fund 1,830 3,792Remuneration payable to trustee 463 486Other payable 114 892
Staff Retirement Benefit Plan (Gratuity Fund)Charge for the period 21,033 51,447Payable to Gratuity fund (58,058) (37,026)
(Unaudited) (Audited)Rupees in thousand
30 June 2020 31 December 2019
Rupees in thousand
30 June 2020 30 June 2019
For six months period ended
(Unaudited) (Audited)ii) Period end balances
Balances receivable 312,486 215,212Balances payable 298,971 359,782Cash and bank balances including term deposits 1,720,067 1,707,013Payable to Staff Gratuity Fund 145,533 142,469
Rupees in thousand
30 June 2020 31 December 2019
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
ADAMJEE INSURANCE 61
27Se
gmen
t Inf
orm
atio
n
For g
ener
al ins
uran
ce, e
ach
class
of b
usine
ss h
as b
een
ident
ified
as re
porta
ble
segm
ent w
here
as, f
or lif
e ins
uran
ce th
e st
atut
ory f
unds
are
trea
ted
as re
porta
ble
segm
ents
. The
Gro
up c
ondu
cts
gene
ral in
sura
nce
busin
ess
both
insid
e an
d ou
tsid
e Pa
kista
n w
hile
life a
ssur
ance
is c
ondu
cted
only
in P
akist
an.
Prem
ium
rece
ivabl
e (In
clusiv
e of
fede
ral e
xcise
dut
y,Fe
dera
l insu
ranc
e fe
e an
d Ad
min
istra
tive
surc
harg
e)3,
891,
102
13,4
4157
3,43
810
,839
1,49
2,28
43,
031,
053
1,07
8,88
741
,763
616,
273
5,76
67,
651,
984
3,10
2,86
210
,754
,846
6,05
5,72
516
,810
,571
Less
:Fe
dera
l exc
ise d
uty /
VAT
(488
,410
)(7
79)
(64,
185)
(55)
(178
,339
)(1
44,3
36)
(10,
399)
(1,9
89)
(54,
455)
(313
)(7
95,7
88)
(147
,472
)(9
43,2
60)
-(9
43,2
60)
Fede
ral in
sura
nce
fee
(33,
033)
(18)
(5,0
43)
(11)
(13,
123)
-(1
0,74
0)-
(6,0
90)
(5)
(68,
029)
(34)
(68,
063)
-(6
8,06
3)3,
369,
659
12,6
4450
4,21
010
,773
1,30
0,82
22,
886,
717
1,05
7,74
839
,774
555,
728
5,44
86,
788,
167
2,95
5,35
69,
743,
523
6,05
5,72
515
,799
,248
Gro
ss w
ritte
n pr
emiu
m (in
clusiv
e of
ad
min
istra
tive
surc
harg
e)3,
369,
659
12,6
4450
4,21
010
,773
1,30
0,82
22,
886,
717
1,05
7,74
839
,774
555,
728
5,44
86,
788,
167
2,95
5,35
69,
743,
523
6,05
5,72
515
,799
,248
Gro
ss d
irect
pre
miu
m3,
358,
570
12,6
0649
3,68
310
,773
1,25
2,02
12,
882,
985
1,05
6,98
939
,774
551,
375
5,44
36,
712,
638
2,95
1,58
19,
664,
219
6,05
5,72
515
,719
,944
Facu
ltativ
e inw
ard
prem
ium
2,63
0-
230
--
--
--
-2,
860
-2,
860
-2,
860
Adm
inist
rativ
e su
rcha
rge
8,45
938
10,2
97-
48,8
013,
732
759
-4,
353
572
,669
3,77
576
,444
-76
,444
3,36
9,65
912
,644
504,
210
10,7
731,
300,
822
2,88
6,71
71,
057,
748
39,7
7455
5,72
85,
448
6,78
8,16
72,
955,
356
9,74
3,52
36,
055,
725
15,7
99,2
48
Insu
ranc
e pr
emiu
m e
arne
d3,
535,
624
16,3
0938
7,83
610
,780
1,37
8,23
43,
697,
941
919,
933
7,82
490
2,78
76,
510
7,12
4,41
43,
739,
364
10,8
63,7
786,
055,
725
16,9
19,5
03In
sura
nce
prem
ium
ced
ed to
rein
sure
rs(3
,134
,753
)(1
1,83
7)(1
03,9
90)
-(2
4,72
7)(4
7,35
9)-
(12,
134)
(456
,505
)(3
,972
)(3
,719
,975
)(7
5,30
2)(3
,795
,277
)(2
22,7
02)
(4,0
17,9
79)
Net i
nsur
ance
pre
miu
m40
0,87
14,
472
283,
846
10,7
801,
353,
507
3,65
0,58
291
9,93
3(4
,310
)44
6,28
22,
538
3,40
4,43
93,
664,
062
7,06
8,50
15,
833,
023
12,9
01,5
24Co
mm
ission
inco
me
223,
468
791
321
2,26
2-
264
51,5
7822
327
7,62
91,
278
278,
907
-27
8,90
7N
et u
nder
writ
ing
inco
me
624,
339
5,26
328
4,16
710
,780
1,35
5,76
93,
650,
582
919,
933
(4,0
46)
497,
860
2,76
13,
682,
068
3,66
5,34
07,
347,
408
5,83
3,02
313
,180
,431
Insu
ranc
e cla
ims
(990
,079
)(9
5,75
6)(2
29,3
62)
2,27
2(5
22,7
29)
(3,2
17,7
62)
(666
,082
)(1
9,00
6)(4
39,0
71)
669
(2,8
47,3
23)
(3,3
29,5
83)
(6,1
76,9
06)
(3,0
52,1
65)
(9,2
29,0
71)
Insu
ranc
e cla
im re
cove
ries
from
rein
sure
r70
2,91
226
,462
37,5
61-
48,4
711,
034,
340
-14
,505
245,
176
152
1,03
4,12
01,
075,
459
2,10
9,57
919
2,19
42,
301,
773
Net c
laim
s(2
87,1
67)
(69,
294)
(191
,801
)2,
272
(474
,258
)(2
,183
,422
)(6
66,0
82)
(4,5
01)
(193
,895
)82
1(1
,813
,203
)(2
,254
,124
)(4
,067
,327
)(2
,859
,971
)(6
,927
,298
)Co
mm
ission
exp
ense
(218
,837
)(1
,194
)(5
6,57
0)(8
45)
(90,
769)
(779
,874
)(2
5,21
6)(8
91)
(69,
498)
(402
)(4
60,8
90)
(783
,206
)(1
,244
,096
)(1
,070
,519
)(2
,314
,615
)M
anag
emen
t exp
ense
(173
,672
)(5
56)
(154
,728
)(4
,065
)(4
87,7
08)
(458
,199
)(6
2,30
6)(7
,747
)(1
29,9
43)
(253
)(1
,008
,357
)(4
70,8
20)
(1,4
79,1
77)
(410
,584
)(1
,889
,761
)Ne
t ins
uran
ce c
laim
s an
d ex
pens
es(6
79,6
76)
(71,
044)
(403
,099
)(2
,638
)(1
,052
,735
)(3
,421
,495
)(7
53,6
04)
(13,
139)
(393
,336
)16
6(3
,282
,450
)(3
,508
,150
)(6
,790
,600
)(4
,341
,074
)(1
1,13
1,67
4)
Net c
hang
e in
insur
ance
liabil
ities (
othe
r tha
n ou
tsta
nding
clai
ms)
--
--
--
--
--
--
-(1
,516
,943
)(1
,516
,943
)
Und
erw
ritin
g re
sult
(55,
337)
(65,
781)
(118
,932
)8,
142
303,
034
229,
087
166,
329
(17,
185)
104,
524
2,92
739
9,61
815
7,19
055
6,80
8(2
4,99
4)53
1,81
4
Net i
nves
tmen
t inc
ome
498,
805
82,9
9658
1,80
11,
390,
276
1,97
2,07
7Ne
t fair
valu
e lo
ss o
n fin
ancia
l ass
ets
at fa
ir va
lue
thr
ough
pro
fit o
r los
s-
--
(1,4
44,5
46)
(1,4
44,5
46)
Net u
nrea
lized
loss
on
inves
tmen
t pro
perty
--
-(2
1,00
0)(2
1,00
0)Re
ntal
incom
e31
,498
979
32,4
77-
32,4
77O
ther
inco
me
65,0
9934
,873
99,9
7217
1,54
927
1,52
1O
ther
exp
ense
s(2
8,89
9)(6
,305
)(3
5,20
4)(5
,621
)(4
0,82
5)Fin
ance
Cos
t(7
91)
(2,0
57)
(2,8
48)
(3,1
07)
(5,9
55)
Profi
t fro
m W
indo
w T
akaf
ul O
pera
tions
87,0
36-
87,0
36-
87,0
36
Profi
t bef
ore
tax
1,05
2,36
626
7,67
61,
320,
042
62,5
571,
382,
599
Segm
ent A
sset
s7,
454,
257
94,2
4776
8,82
15,
666
1,33
4,06
55,
107,
433
889,
691
60,7
641,
714,
319
20,0
1312
,161
,153
5,28
8,12
317
,449
,276
40,9
17,3
4158
,366
,617
Unall
ocat
ed a
sset
s23
,452
,897
7,57
2,53
331
,025
,430
-31
,025
,430
35,6
14,0
5012
,860
,656
48,4
74,7
0640
,917
,341
89,3
92,0
47
Segm
ent L
iabilit
ies7,
752,
470
111,
129
981,
599
24,2
572,
361,
386
10,1
53,9
971,
828,
583
74,7
252,
222,
546
24,0
3015
,146
,584
10,3
88,1
3825
,534
,722
39,5
05,1
2765
,039
,849
Unall
ocat
ed L
iabilit
ies3,
671,
838
536,
984
4,20
8,82
2-
4,20
8,82
2
18,8
18,4
2210
,925
,122
29,7
43,5
4439
,505
,127
69,2
48,6
71
Heal
thO
utsi
de
Paki
stan
Out
side
Paki
stan
Out
side
Paki
stan
Insi
de
Paki
stan
Out
side
Paki
stan
Insi
de
Paki
stan
Insi
de
Paki
stan
Insi
de
Paki
stan
Insi
de
Paki
stan
Insi
de
Paki
stan
Out
side
Paki
stan
Out
side
Paki
stan
Fire
and
pro
perty
dam
age
Mar
ine, a
viatio
n an
d tra
nspo
rtM
otor
Misc
ella
neou
sTo
tal
Aggr
egat
eLi
fe
Insu
ranc
eAg
greg
ate
Gene
ral
Insu
ranc
eRu
pees
in th
ousa
nds
Gen
eral
Insu
ranc
e
Six
mon
ths
perio
d en
ded
30 J
une
2020
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
Heal
thO
utsi
de
Paki
stan
Out
side
Paki
stan
Out
side
Paki
stan
Insi
de
Paki
stan
Out
side
Paki
stan
Insi
de
Paki
stan
Insi
de
Paki
stan
Insi
de
Paki
stan
Insi
de
Paki
stan
Insi
de
Paki
stan
Out
side
Paki
stan
Out
side
Paki
stan
Fire
and
pro
perty
dam
age
Mar
ine, a
viatio
n an
d tra
nspo
rtM
otor
Misc
ella
neou
sTo
tal
Aggr
egat
eLi
fe
Insu
ranc
eAg
greg
ate
Gene
ral
Insu
ranc
eRu
pees
in th
ousa
nds
Gen
eral
Insu
ranc
e
30 J
une
2020
62
27.1
Segm
ent I
nfor
mat
ion
For g
ener
al ins
uran
ce, e
ach
class
of b
usine
ss h
as b
een
ident
ified
as re
porta
ble
segm
ent w
here
as, f
or lif
e ins
uran
ce th
e st
atut
ory f
unds
are
trea
ted
as re
porta
ble
segm
ents
. The
Gro
up c
ondu
cts
gene
ral in
sura
nce
busin
ess
both
insid
e an
d ou
tsid
e Pa
kista
n wh
ile lif
e as
sura
nce
is co
nduc
ted
only
in Pa
kista
n.
Prem
ium
rece
ivabl
e (In
clusiv
e of
fede
ral e
xcise
dut
y,Fe
dera
l insu
ranc
e fe
e an
d Ad
min
istra
tive
surc
harg
e)4,
773,
039
28,3
3848
5,93
913
,103
1,72
6,03
74,
130,
514
1,12
3,02
119
,798
1,05
7,55
811
,283
9,16
5,59
44,
203,
036
13,3
68,6
305,
360,
745
18,7
29,3
75Le
ss:
Fede
ral e
xcise
dut
y / V
AT(5
90,1
41)
(1,8
50)
(53,
315)
(260
)(2
06,0
60)
(198
,723
)(2
1,33
8)(9
43)
(84,
404)
(565
)(9
55,2
58)
(202
,341
)(1
,157
,599
)-
(1,1
57,5
99)
Fede
ral in
sura
nce
fee
(41,
030)
(73)
(4,2
98)
(27)
(15,
210)
-(1
0,97
6)-
(9,5
93)
(5)
(81,
107)
(105
)(8
1,21
2)-
(81,
212)
4,14
1,86
826
,415
428,
326
12,8
161,
504,
767
3,93
1,79
11,
090,
707
18,8
5596
3,56
110
,713
8,12
9,22
94,
000,
590
12,1
29,8
195,
360,
745
17,4
90,5
64
Gro
ss w
ritte
n pr
emium
(inc
lusiv
e of
ad
mini
stra
tive
surc
harg
e)4,
141,
868
26,4
1542
8,32
612
,816
1,50
4,76
73,
931,
791
1,09
0,70
718
,855
963,
561
10,7
138,
129,
229
4,00
0,59
012
,129
,819
5,36
0,74
517
,490
,564
Gro
ss d
irect
pre
miu
m4,
130,
334
26,2
8241
7,38
712
,775
1,45
5,92
13,
926,
283
1,09
1,40
518
,855
957,
637
10,6
718,
052,
684
3,99
4,86
612
,047
,550
5,36
0,74
517
,408
,295
Facu
ltativ
e in
war
d pr
emiu
m2,
730
-32
8-
--
--
--
3,05
8-
3,05
8-
3,05
8Ad
min
istra
tive
surc
harg
e8,
804
133
10,6
1141
48,8
465,
508
(698
)-
5,92
442
73,4
875,
724
79,2
11-
79,2
114,
141,
868
26,4
1542
8,32
612
,816
1,50
4,76
73,
931,
791
1,09
0,70
718
,855
963,
561
10,7
138,
129,
229
4,00
0,59
012
,129
,819
5,36
0,74
517
,490
,564
Insu
ranc
e pr
emiu
m e
arne
d3,
473,
207
22,8
4840
8,99
718
,443
1,43
3,73
94,
174,
081
873,
920
25,5
5189
7,12
48,
047
7,08
6,98
74,
248,
970
11,3
35,9
575,
360,
745
16,6
96,7
02In
sura
nce
prem
ium
ced
ed to
rein
sure
rs(3
,027
,656
)(1
5,73
5)(5
2,48
7)-
(25,
917)
(49,
848)
-(1
8,10
2)(4
39,8
58)
(4,2
22)
(3,5
45,9
18)
(87,
907)
(3,6
33,8
25)
(240
,399
)(3
,874
,224
)N
et in
sura
nce
prem
ium
445,
551
7,11
335
6,51
018
,443
1,40
7,82
24,
124,
233
873,
920
7,44
945
7,26
63,
825
3,54
1,06
94,
161,
063
7,70
2,13
25,
120,
346
12,8
22,4
78C
omm
issio
n in
com
e17
6,77
82,
897
383
-1,
744
(964
)-
-65
,290
1,04
824
4,19
52,
981
247,
176
-24
7,17
6N
et u
nder
writ
ing
inco
me
622,
329
10,0
1035
6,89
318
,443
1,40
9,56
64,
123,
269
873,
920
7,44
952
2,55
64,
873
3,78
5,26
44,
164,
044
7,94
9,30
85,
120,
346
13,0
69,6
54
Insu
ranc
e cla
ims
(571
,549
)(1
4,06
6)(2
56,6
27)
(7,0
17)
(735
,508
)(3
,911
,649
)(7
40,0
59)
(20,
388)
(355
,093
)(2
,881
)(2
,658
,836
)(3
,956
,001
)(6
,614
,837
)(3
,115
,513
)(9
,730
,350
)In
sura
nce
claim
reco
verie
s fro
m re
insu
rer
521,
372
18,4
6353
,423
-(7
,007
)1,
088,
723
-16
,687
186,
308
1,98
375
4,09
61,
125,
856
1,87
9,95
217
0,55
82,
050,
510
Net
cla
ims
(50,
177)
4,39
7(2
03,2
04)
(7,0
17)
(742
,515
)(2
,822
,926
)(7
40,0
59)
(3,7
01)
(168
,785
)(8
98)
(1,9
04,7
40)
(2,8
30,1
45)
(4,7
34,8
85)
(2,9
44,9
55)
(7,6
79,8
40)
Com
miss
ion
expe
nse
(213
,180
)(2
,969
)(5
5,19
4)(3
,287
)(9
6,88
8)(5
63,4
36)
(28,
982)
(34)
(64,
792)
(245
)(4
59,0
36)
(569
,971
)(1
,029
,007
)(1
,173
,815
)(2
,202
,822
)M
anag
emen
t exp
ense
(190
,459
)(8
26)
(129
,377
)(6
,071
)(5
21,0
57)
(653
,778
)(6
9,00
1)(7
,804
)(1
33,1
42)
(444
)(1
,043
,036
)(6
68,9
23)
(1,7
11,9
59)
(496
,535
)(2
,208
,494
)N
et in
sura
nce
claim
s an
d ex
pens
es(4
53,8
16)
602
(387
,775
)(1
6,37
5)(1
,360
,460
)(4
,040
,140
)(8
38,0
42)
(11,
539)
(366
,719
)(1
,587
)(3
,406
,812
)(4
,069
,039
)(7
,475
,851
)(4
,615
,305
)(1
2,09
1,15
6)
Net c
hang
e in
insur
ance
liabil
ities (
othe
r tha
n ou
tstan
ding
claim
s)-
--
--
--
--
--
--
(267
,489
)(2
67,4
89)
Unde
rwrit
ing
resu
lt16
8,51
310
,612
(30,
882)
2,06
849
,106
83,1
2935
,878
(4,0
90)
155,
837
3,28
637
8,45
295
,005
473,
457
237,
552
711,
009
Net
inve
stm
ent i
ncom
e27
8,93
610
2,58
638
1,52
21,
384,
463
1,76
5,98
5N
et fa
ir va
lue
loss
on
finan
cial a
sset
s at
fair
valu
e t
hrou
gh p
rofit
or l
oss
--
-(1
,631
,530
)(1
,631
,530
)N
et u
nrea
lized
gai
ns o
n in
vest
men
t pro
perty
--
-21
,000
21,0
00Re
ntal
inco
me
1,68
9-
1,68
91,
500
3,18
9O
ther
inco
me
25,0
925,
352
30,4
4414
3,59
717
4,04
1O
ther
exp
ense
s(4
7,33
8)(5
,509
)(5
2,84
7)(2
0,64
8)(7
3,49
5)Fi
nanc
e C
ost
(2,3
27)
(2,3
31)
(4,6
58)
(8,2
29)
(12,
887)
Profi
t fro
m W
indo
w Ta
kafu
l Ope
ratio
ns57
,859
-57
,859
-57
,859
Profi
t/ (lo
ss) b
efor
e ta
x69
2,36
319
5,10
388
7,46
612
7,70
51,
015,
171
Segm
ent A
sset
s6,
992,
773
95,7
8848
9,76
75,
187
1,06
2,81
25,
552,
814
558,
513
33,5
101,
923,
756
19,2
4911
,027
,621
5,70
6,54
816
,734
,169
39,1
89,7
0255
,923
,871
Unal
locat
ed a
sset
s25
,463
,418
6,54
6,13
832
,009
,556
1,07
1,64
333
,081
,199
36,4
91,0
3912
,252
,686
48,7
43,7
2540
,261
,345
89,0
05,0
70
Segm
ent L
iabi
lities
7,06
0,54
011
1,21
162
4,86
125
,552
2,35
9,10
19,
993,
415
1,36
6,49
240
,351
2,30
7,32
522
,763
13,7
18,3
1910
,193
,292
23,9
11,6
1137
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Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
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ADAMJEE INSURANCE 63
Fair valuethrough P&L
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.
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:
- Inputs other than quoted prices included within level 1 that are observable for the asset either directly (that is, derived from prices) (Level 2)
28 Fair value measurement of financial instruments
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
- 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.
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.
Financial assets - measured at fair value
Investment Equity securities- quoted 10 13,653,063 - 13,097,493 - - - 26,750,556 26,750,556 - - 26,750,556 Equity securities- unquoted 10 2,925,532 - - - - - 2,925,532 - - 2,925,532 2,925,532 Debt securities 11 725,851 362,034 13,765,128 - - 14,853,013 - 14,853,013 - 14,853,013
17 34,647 - - - - - 34,647 34,647 - - 34,647
Financial assets - not measured at fair value
Loans and other receivables * 13 - - - 768,482 - - 768,482 - - - - Loan secured against life insurance policies* - - - 30,977 - - 30,977 - - - - Investment - Term deposits* 12 - 9,546,445 - - - - 9,546,445 - - - - Insurance / reinsurance receivables
- unsecured and considered good * 14 - - - 6,852,442 - - 6,852,442 - - - - Reinsurance recoveries against outstanding claims * - - - 6,310,890 - - 6,310,890 - - - - Salvage recoveries accrued * - - - 272,675 - - 272,675 - - - - Prepayments * 15 3,135,786 3,135,786 - - - - Cash and bank * 16 - - - - 10,170,051 - 10,170,051 - - - -
17 - - - 216,136 296,858 - 512,994 - - - - -
17,339,093 9,908,479 26,862,621 17,587,388 10,466,909 - 82,164,490 26,785,203 14,853,013 2,925,532 44,563,748
Financial liabilities - not measured at fair value
Underwriting provisions:Outstanding claims (including IBNR)* 22 - - - - - 11,641,695 11,641,695 - - - - Insurance / reinsurance payables * - - - - - 3,971,012 3,971,012 - - - - Other creditors and accruals* 19 - - - - - 2,493,539 2,493,539 - - - - Deposits and other liabilities* - - - - - 829,565 829,565 - - - -
17 - - - - - 256,770 256,770 - - - - - -
- - - - - 19,192,581 19,192,581 - - - -
* The Group has not disclosed the fair value of these items because their carrying amounts are a reasonable approximation of fair value.
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
Rupees in thousand
Total Level 1 Level 2 Level 3 TotalAvailablefor sale
Held to maturity
Receivablesand other
financial assets
Cash andcash
equivalents
Otherfinancialliabilities
30 June 2020
Note
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
64
28.1 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.
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:
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.
Transfer between levels of the fair value hierarchy are recognized at the end of the reporting period during which the changes have occurred.
- Inputs for the asset or liability that are not based on observable market data (that is, unadjusted) inputs (Level 3)
- Inputs other than quoted prices included within level 1 that are observable for the asset either directly (that is, derived from prices) (Level 2)
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
Financial assets - measured at fair value
Investment Equity securities- quoted 10 15,991,690 - 13,318,382 - - - 29,310,072 29,310,072 - - 29,310,072 Equity securities- unquoted 10 2,874,483 - - - - - 2,874,483 - - 2,874,483 2,874,483 Debt securities 11 651,837 465,868 7,499,769 - - 8,617,474 - 8,617,474 - 8,617,474
17 32,958 - - - - - 32,958 32,958 - - 32,958
Financial assets - not measured at fair value
Loans and other receivables * 13 - - - 716,839 - - 716,839 - - - - Loan secured against life insurance policies* - - - 32,785 - - 32,785 - - - - Investment - Term deposits* 12 - 15,468,892 - - - - 15,468,892 - - - - Insurance / reinsurance receivables
- unsecured and considered good * 14 - - - 5,865,967 - - 5,865,967 - - - - Reinsurance recoveries against outstanding claims * - - - 5,931,928 - - 5,931,928 - - - - Salvage recoveries accrued * - - - 301,420 - - 301,420 - - - - Prepayments * 15 3,671,070 3,671,070 - - - - Cash and bank * 16 - - - - 8,437,244 - 8,437,244 - - - -
17 - - - 301,438 91,895 - 393,333 - - - - -
19,550,968 15,934,760 20,818,151 16,821,447 8,529,139 - 81,654,465 29,343,030 8,617,474 2,874,483 40,834,987
Financial liabilities - not measured at fair value
Underwriting provisions:Outstanding claims (including IBNR)* 22 - - - - - 10,367,347 10,367,347 - - - - Insurance / reinsurance payables * - - - - - 2,826,429 2,826,429 - - - - Other creditors and accruals* 19 - - - - - 3,121,205 3,121,205 - - - - Deposits and other liabilities* - - - - - 898,258 898,258 - - - -
17 - - - - - 195,872 195,872 - - - - - -
- - - - - 17,409,111 17,409,111 - - - -
* The Group has not disclosed the fair value of these items because their carrying amounts are a reasonable approximation of fair value.
Total liabilities of Window Takaful Operations- Operator's Fund*
Investments of Window Takaful Operations - Operator's Fund
Other Assets of Window Takaful Operations - Operator's Fund*
Rupees in thousand
31 December 2019
Note
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
Fair valuethrough P&L
Total Level 1 Level 2 Level 3 TotalAvailablefor sale
Held to maturity
Receivablesand other
financial assets
Cash andcash
equivalents
Otherfinancialliabilities
ADAMJEE INSURANCE 65
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For six month period ended 30 June 2020
32.2 Figures have been rounded off to the nearest thousand rupees unless other wise stated.
31 Non - adjusting events after balance sheet date
This consolidated condensed interim financial information was authorized for issue on August 24, 2020 by the Board of Directors of the Parent Company.
32 General
32.1 Corresponding figures have been rearranged and reclassified for better presentation, wherever considered necessary.
The Board of Directors of the Parent Company in their meeting held on August 24, 2020 proposed an interim cash dividend for the six month period ended June 30, 2020 @ 12.5% i.e. Rupees 1.25/- per share (June 30, 2019 @ 10 % i.e. Rupee 1/- per share). These consolidated condensed interim financial statements for the six month period ended June 30, 2020 do not include the effect of this appropriation which will be accounted for in the consolidated financial statements for the year ending December 31, 2020.
29 Date of authorization for issue
30 Impact of Covid - 19 on Operations
The Group followed the development of the Covid-19 corona virus and evaluated the extent to which this affected the operations in the short and long term. The Group has concluded that there are no significant implications of the pandemic over the operations of the group.
Muhammad Ali ZebManaging Director &
Chief Executive Officer
Umer ManshaChairman
Muhammad Asim NagiChief Financial Officer
Ibrahim ShamsiDirector
Shaikh Muhammad JawedDirector
ADAMJEE INSURANCE 67
Condensed InterimFinancial Statements
for the Six Months Ended30 June 2020(Unaudited)
Six Months Report68
DRAFT INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF ADAMJEE INSURANCE COMPANY LIMITED – WINDOW TAKAFUL OPERATIONS REPORT ON REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS
Window Takaful Operations
Conclusion
Chartered Accountants
Introduction
The engagement partner on the review resulting in this independent auditor’s review report is Rana M. Usman Khan.
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, 2020, and the related condensed interim statement of profit and loss account, condensed interim statement of comprehensive income, condensed interim statement of changes in shareholders equity and participants’ takaful fund, condensed interim cash flow statement, and notes to the financial statements for the six month period then ended (here-in-after referred to as the “condensed interim financial statements"). Management is responsible for the preparation and presentation of these interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these financial statements based on our review. The figures of the condensed interim statement of profit and loss account and the condensed interim statement of comprehensive income for the three month period ended June 30, 2020 and related comparative information have not been reviewed, as we are required to review only the cumulative figures for the six month period ended June 30, 2020.
Lahore
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial statements Performed by the Independent Auditor of the Entity”. A review of interim financial statements 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.
Date: 24 August 2020
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.
ADAMJEE INSURANCE 69
ASSETS
Qard-e-Hasna to Participants' Takaful Fund 146,460 146,460 - -
Property and equipment 8 17,589 17,733 - -Intangible assets 9 16,107 17,650 - -Investments
Equity securities 10 34,647 32,958 - -Debt securities 11 - - 125,000 125,000
Loans and other receivables 12 6,951 6,731 28,809 21,655Takaful / re - takaful receivables 13 - - 504,270 261,580Re - takaful recoveries against outstanding claims - - 376,323 88,706Salvage recoveries accrued - - 32,547 13,631Wakala and mudarib fee receivable - 70,933 - -Deferred commission expense 22 29,029 41,931 - -Prepayments 14 - - 99,630 105,379Cash and bank 15 296,858 91,895 419,802 434,658
401,181 279,831 1,586,381 1,050,609
TOTAL ASSETS 547,641 426,291 1,586,381 1,050,609
FUNDS AND LIABILITIES
Funds attributable to Operator's and Participants'
Operator's Takaful FundStatutory fund 50,000 50,000 - -Reserves 13 1,356 - -Unappropriated profit 240,858 179,063 - -
290,871 230,419 - -
Waqf / Participants' Takaful FundCeded money - - 500 500Accumulated Surplus - - 120,254 80,786
- - 120,754 81,286
Qard-e-Hasna from Operator's Takaful Fund - - ` 146,460 146,460
LiabilitiesUnderwriting provisions
Outstanding claims including IBNR 21 - - 650,915 257,810Unearned contribution reserve 19 - - 447,712 377,586Unearned re - takaful rebate 20 - - 16,969 15,979Contribution deficiency reserve - - 55,787 30,071
Retirement benefit obligations 3,878 3,878 - -Deferred taxation 411 987 - -Contribution received in advance - - 11,389 13,109Takaful / re - takaful payables 16 - - 68,063 38,513Wakala and mudarib fee payable - - - 70,933Unearned wakala fee 23 175,386 139,979 - -Other creditors and accruals 17 55,065 51,028 68,332 18,862Taxation - provision less payments 22,030 - - -Total Liabilities 256,770 195,872 1,319,167 822,863
TOTAL FUNDS AND LIABILITIES 547,641 426,291 1,586,381 1,050,609
Contingencies and commitments 18The annexed notes from 1 to 33 form an integral part of this condensed interim financial statements.
Condensed Interim Statement of Financial position (Unaudited)As at 30 June 2020
Window Takaful Operations
Muhammad Ali ZebManaging Director &
Chief Executive Officer
Umer ManshaChairman
Muhammad Asim NagiChief Financial Officer
Ibrahim ShamsiDirector
Shaikh Muhammad JawedDirector
Rupees in thousand
30 June 202030 June 2020 31 December 201931 December 2019
Participants' Takaful FundOperator's Takaful FundNote
(Audited)(Audited)(Unaudited) (Unaudited)
Six Months Report70
Contributions earnedContributions ceded to re - takafulNet contribution revenue 19
Re - takaful rebate earned 20Net underwriting income
Net takaful claims - reported / settled 21Charge of contribution deficiency reserve
Other direct expenses(Deficit) / surplus before investment income
Investment income 25Other income 26Mudarib's share of investment incomeSurplus transferred to accumulated deficit / surplus
Wakala fee 23Commission expense 22General, administrative and management expenses 24
Other income 26Mudarib's share of PTF investment incomeInvestment income 25Direct expensesProfit before taxation
Provision for taxation
Profit after taxation
The annexed notes from 1 to 33 form an integral part of this condensed interim financial statements.
OPERATOR'S TAKAFUL FUND - REVENUE ACCOUNT
PARTICIPANTS' TAKAFUL FUND - REVENUE ACCOUNT
260,989(70,971)190,018
13,219203,237
(184,760)(25,716)
(210,476)(14,384)(21,623)
5,4589,009
(1,091)(8,247)
102,919(23,972)(33,785)45,162
4,2921,9894,354
(4,537)51,260
.(14,819)
36,441
220,481(57,169)163,312
10,140173,452
(135,857)(4,294)
(140,151)(13,312)19,989
1,2798,655
-29,923
82,078(24,226)(30,112)27,740
8,363-
2,298(6,976)31,425
(9,383)
22,042
516,829(141,915)374,914
25,677400,591
(333,377)(25,716)
(359,093)(30,479)11,019
9,94720,491(1,989)39,468
199,242(52,440)(68,549)78,253
5,1901,9893,584
(1,980)87,036
(25,241)
61,795
428,085(114,748)313,337
20,441333,778
(250,082)(4,294)
(254,376)(25,320)54,082
2,47515,038
-71,595
155,995(46,721)(59,394)49,880
8,363-
1,345(1,729)57,859
(16,785)
41,074
Condensed Interim Profit and Loss Account (Unaudited)For The Six Month Period Ended June 30, 2020
Window Takaful Operations
Muhammad Ali ZebManaging Director &
Chief Executive Officer
Umer ManshaChairman
Muhammad Asim NagiChief Financial Officer
Ibrahim ShamsiDirector
Shaikh Muhammad JawedDirector
Rupees in thousand
30 June 202030 June 2020 30 June 201930 June 2019
For six months period endedFor three months period endedNote
(Unaudited)(Unaudited)(Unaudited) (Unaudited)
ADAMJEE INSURANCE 71
PARTICIPANTS' TAKAFUL FUND
(Deficit) / Surplus for the period
Other comprehensive income for the period
Total comprehensive (loss) / income for the period
OPERATOR`S TAKAFUL FUND
Profit after taxation
Other comprehensive income:
Unrealized losses on available-for-sale investment- Net of tax
Total comprehensive income for the period
The annexed notes from 1 to 33 form an integral part of this condensed interim financial statements.
(8,247)
-
(8,247)
36,441
(2,027)
34,414
29,923
-
29,923
22,042
(441)
21,601
39,468
-
39,468
61,795
(1,343)
60,452
71,595
-
71,595
41,074
(18)
41,056
Condensed Interim Statement of Comprehensive Income (Unaudited)For The Six Month Period Ended June 30, 2020
Window Takaful Operations
Muhammad Ali ZebManaging Director &
Chief Executive Officer
Umer ManshaChairman
Muhammad Asim NagiChief Financial Officer
Ibrahim ShamsiDirector
Shaikh Muhammad JawedDirector
Rupees in thousand
30 June 202030 June 2020 30 June 201930 June 2019
For six months period endedFor three months period endedNote
(Unaudited)(Unaudited)(Unaudited) (Unaudited)
Six Months Report72
Balance as at December 31, 2018 - (Audited)
Profit after tax for the period January 01, 2019 to June 30, 2019Other comprehensive loss for the
period January 01, 2019 to June 30, 2019Total comprehensive income for the period
Balance as at June 30, 2019 - (Unaudited)
Profit after tax for the period July 01, 2019 to December 31, 2019Other comprehensive income for the
period July 01, 2019 to December 31, 2019Total comprehensive income for the period
Balance as at December 31, 2019 - (Audited)
Profit after tax for the period January 01, 2020 to June 30, 2020Other comprehensive loss for the
period January 01, 2020 to June 30, 2020Total comprehensive income for the period
Balance as at June 30, 2020 - (Unaudited)
Balance as at January 01, 2019
Surplus for the period January 01, 2019 to June 30, 2019Other comprehensive surplus/ (deficit) for the
period January 01, 2019 to June 30, 2019Total comprehensive surplus for the period
Balance as at June 30, 2019 - (Unaudited)
Surplus for the period July 01, 2019 to December 31, 2019Other comprehensive surplus/ (deficit) for the
period July 01, 2019 to December 31, 2019Total comprehensive surplus for the period
Balance as at December 31, 2019 - (Audited)
Surplus for the period January 01, 2020 to June 30, 2020Other comprehensive surplus/ (deficit) for the
period January 01, 2020 to June 30, 2020Total comprehensive surplus for the period
Balance as at June 30, 2020 - (Unaudited)
The annexed notes from 1 to 33 form an integral part of this condensed interim financial statements.
18
-
(18)(18)
-
-
1,3561,356
1,356
-
(1,343)(1,343)
13
50,000
-
--
50,000
-
--
50,000
-
--
50,000
500
-
--
500
-
--
500
-
--
500
102,357
41,074
-41,074
143,431
35,632
-35,632
179,063
61,795
-61,795
240,858
(28,849)
71,595
-71,595
42,746
38,040
-38,040
80,786
39,468
-39,468
120,254
-
-
--
-
-
--
-
-
--
-
152,375
41,074
(18)41,056
193,431
35,632
1,35636,988
230,419
61,795
(1,343)60,452
290,871
(28,349)
71,595
-71,595
43,246
38,040
-38,040
81,286
39,468
-39,468
120,754
Condensed Interim Statement of Changes in Shareholders Equity and Participants' Takaful Fund (Unaudited)
Window Takaful Operations
As at June 30, 2020
Muhammad Ali ZebManaging Director &
Chief Executive Officer
Umer ManshaChairman
Muhammad Asim NagiChief Financial Officer
Ibrahim ShamsiDirector
Shaikh Muhammad JawedDirector
Ceded Money
Accumulated Surplus / (deficit)
Attributable to Participants' Takaful Fund
Fair Value Reserve Total
Rupees in thousand
Statutory Fund
Unappropriated Profit
Attributable to Shareholders of the Company
Fair Value Reserve Total
Rupees in thousand
ADAMJEE INSURANCE 73
Operating cash flows
(a) Takaful activitiesContributions received - - 633,916 566,846Wakala fee received / (paid) 307,572 195,712 (307,572) (195,712)Re - takaful / co-takaful paid - - (65,581) (72,581)Claims paid - - (303,823) (314,066)Re - takaful and other recoveries received - - (45,723) 11,306Commissions paid (28,731) (53,216) - -Commissions received - - 26,667 21,906Management expenses paid (76,238) (108,967) - -Other underwriting payments - - (14,766) (28,065)
Net cash inflows / (outflows) from takaful activities 202,603 33,529 (76,882) (10,366)
(b) Other operating activitiesIncome tax paid (808) (1,092) - -Other payments / (receipts) - - 35,484 (9,693)Expenses paid - - - -
Net cash (outflows) / inflows from other operating activities (808) (1,092) 35,484 (9,693)
Total cash inflows / (outflows) from operating activities 201,795 32,437 (41,398) (20,059)
(c) Investment activities
Profit received on bank deposits and investments 5,385 10,211 26,542 15,883Payment for investments (34,628) (1,144) - (50,000)Proceeds from disposal of investments 34,632 - - -Fixed capital expenditures (2,221) (1,661) - -
Total cash inflows from investing activities 3,168 7,406 26,542 (34,117)
(d) Financing activities
Contribution to Operator's fund - - - -Ceded money - - - -
Total cash inflows from financing activities - - - -
Net Cash inflows / (outflows) from all activities 204,963 39,843 (14,856) (54,176)
Cash and cash equivalent at the beginning of the period 91,895 102,039 434,658 432,489
Cash and cash equivalent at the end of the period 296,858 141,882 419,802 378,313
Reconciliation to profit and loss account
Operating cash flows 201,795 32,437 (41,398) (20,059)Depreciation expense (1,304) (3,431) - -Amortization expense (2,603) - - -(Decrease) / Increase in assets other than cash (83,421) (21,044) 548,453 151,015(Increase) / Decrease in liabilities other than cash (61,446) 23,406 (498,025) (76,874)Investment income 3,584 1,345 9,947 -Return on bank deposits 5,190 8,361 20,491 17,513
Net profit / surplus for the period 61,795 41,074 39,468 71,595
Attributed to
Operator's Takaful Fund 61,795 41,074 - -Participants' Takaful Fund - - 39,468 71,595
61,795 41,074 39,468 71,595The annexed notes from 1 to 33 form an integral part of this condensed interim financial statements.
Rupees in thousand
30 June 202030 June 2020 30 June 201930 June 2019
Participants' Takaful FundOperator's Takaful Fund
Rupees in thousand
30 June 202030 June 2020 30 June 201930 June 2019
Participants' Takaful FundOperator's Takaful Fund
Condensed Interim Cash Flow Statement (Unaudited)Window Takaful Operations
For The Six Month Period Ended June 30, 2020
Muhammad Ali ZebManaging Director & Chief Executive Officer
Umer ManshaChairman
Muhammad Asim NagiChief Financial Officer
Ibrahim ShamsiDirector
Shaikh Muhammad JawedDirector
Six Months Report74
Provision of and directives issued under the Companies Act, 2017, the Insurance Ordinance, 2000, the Insurance Rules, 2017, Insurance Accounting Regulations, 2017, the Takaful Rules 2012 , and General Takaful Accounting Regulations 2019.
International Accounting Standard - 34 - "Interim Financial Reporting" issued by the International Accounting Standards Board (IASB) as are notified under the Companies Act, 2017; and
1 Legal status and nature of business
Adamjee Insurance Company Limited ('the Operator') is a public limited company incorporated in Pakistan on September 28, 1960 under the Companies Act, 1913 (now the Companies Act, 2017). The Operator is listed on Pakistan Stock Exchange and is engaged in general takaful business comprising fire & property, marine aviation & transport, motor, accident & health and miscellaneous. The registered office of the Operator is situated at Adamjee House, 80/A, Block E-1, Main Boulevard, Gulberg-III, Lahore.
For the purpose of carrying on the Takaful business, the Operator has formed a Waqf (Participants’ Takaful Fund (PTF)) on January 01, 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.
"During the period, the Operator has adopted and presented this condensed interim financial statements to comply with the requirements of the ‘General Takaful Accounting Regulations, 2019 issued by SECP vide its S.R.O. 1416 (I)/2019 dated November 20, 2019. In line with the requirements provided in the Rules, these are the first set of condensed interim financial information of the Operator for the six month period ended June 30, 2020.
Certain changes have been made to the presentation of the financial information. Following prior year figures have been reclassified / rearranged for the purpose of comparison:"
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, General Takaful Accounting Regulations 2019 and the Takaful Rules, 2012 shall prevail.
The Operator was granted authorization on December, 23 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").
2 Basis of preparation and statement of compliance
These condensed interim financial statements for the six month period ended June 30, 2020 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, the Takaful Rules, 2012 and General Takaful Accounting Regulations 2019. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:
Reclassified from Reclassified to Rs. (In 000)
Deferred Wakala Expense Unearned Contribution Reserve 139,979
These condensed interim financial statements 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's for the year ended December 31, 2019. Comparative condensed interim statement of financial position is stated from annual audited financial statements as of December 31, 2019, 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's for the six month period ended June 30, 2019.
Window Takaful Operations
Notes to the Condensed Interim Financial Statements (Unaudited)For The Six Month Period Ended June 30, 2020
ADAMJEE INSURANCE 75
These condensed interim financial statements are 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.
During preparation of these condensed interim financial statements, 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 December 31, 2019.
5 Accounting policies
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.
There is no significant impact of such changes on this condensed interim financial statements of the Operator.
The operator has changed it's rate for wakala fee for motor takaful policies from 27.5% to 32.5% of gross contribution underwritten including administrative surcharge during the period.
The accounting policies and the methods of computation adopted in the preparation of the condensed interim financial statements are same as those applied in the preparation of annual audited financial statements for the year ended December 31, 2019.
These condensed interim financial statements are 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 Changes in accounting policies
The adoption of General Takaful Accounting Regulations, 2019 does not affect the accounting policies of the Operator and are consistent. 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 January 01, 2020, as mentioned in the financial statement for the year ended December 31, 2019. Furthermore, the Operator has adopted the temporary exemption which allows the Operator to defer the application of both IFRS 9 and IFRS 17 until December,31 2021.
6 Use of estimates and judgments
The condensed interim financial statements 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.
The preparation of these condensed interim financial statements 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.
4 Basis of measurement
The Operator followed the development of the Covid-19 corona virus and evaluated the extent to which this affected the Operator's operations in the short and long term. The Operator has concluded that they had no significant implications of the pandemic over the operations of the entity.
These condensed interim financial statements have 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 these financial statements are on accrual basis except for those reflected in cash flow statement.
Window Takaful Operations
Notes to the Condensed Interim Financial Statements (Unaudited)For The Six Month Period Ended June 30, 2020
Six Months Report76
7 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 December 31, 2019.
(Unaudited) (Audited)8 Property and equipment
Opening balance - net book value 16,433 12,506Additions during the period 8.1 461 7,219
Book value of disposals during the period - (841)Depreciation charged during the period (1,305) (2,451)
(1,305) (3,292)Closing balance - net book value 15,589 16,433Capital work - in - progress 8.2 2,000 1,300
17,589 17,7338.1 Additions during the period
Furniture and fixture - 534Motor vehicles - 6,292Office equipment 299 260Computer and related accessories 162 133
461 7,219
8.2 Capital work in progress
Opening balance 1,300 3,679Additions during the year 700 750Transfer to property and equipment - (2,379)Transfer to intangibles - (750)Closing balance 2,000 1,300
This represent amount advanced to Analytics (Private) Limited. for development of Web portal for Takaful Operations.
9 Intangible assets
Opening balance - net book value 17,650 20,633Transfer from Capital work-in-progress - 750Addition during the period 1,060 2,250Amortization charged during the period (2,603) (5,983)Closing balance 16,107 17,650
Rupees in thousand
30 June 2020 31 December 2019
Operator's Takaful Fund
Note
Window Takaful Operations
Notes to the Condensed Interim Financial Statements (Unaudited)For The Six Month Period Ended June 30, 2020
10 Investments in equity securities
Mutual fundMeezan Islamic Income Fund 34,628 -
-
31,048 -
-
31,048 [604,139 units (2019: 604,139 units)]
Unrealized gain on revaluation 1,910
34,628
19
34,647 32,958
Available for sale(Unaudited) (Audited)
Rupees in thousand
31 December 2019
CostImpairment/
provisionCarrying
ValueCarrying
Value
30 June 2020
Cost Impairment/ provision
Operator's Takaful Fund
ADAMJEE INSURANCE 77
11 Investments in debt securitiesHeld - to - maturitySukuk certificates
Engro Polymer & Chemicals Limited 500 50,000 The Hub Power Company Limited (HUBCO) 750
500750 100,000 100,000 75,000
50,00075,000
125,000 125,000
Rupees in thousand
30 June 202031 December 201930 June 2020 31 December 2019Face Value
Value of CertificatesParticipants' Takaful Fund
No. of Certificates
(Unaudited) (Audited) (Unaudited) (Audited)12 Loans and other receivables - Considered good
Advance taxes 2,432 - -Federal excise duty - - 1,750Accrued income 1,131 6,744 2,848Loan to employees 1,555 - -Security deposits 525 - -Bid money for tenders - 22,065 17,057Advances 1,088 - -
--
936596366-
5,053 6,951 6,731 28,809 21,655
Rupees in thousand
30 June 202030 June 2020 31 December 201931 December 2019
Participants' Takaful FundOperator's Takaful Fund
Window Takaful Operations
Notes to the Condensed Interim Financial Statements (Unaudited)For The Six Month Period Ended June 30, 2020
13 Takaful / Re - takaful receivables - Unsecured and considered good
Due from takaful participants' holders 416,208 230,238Less: provision for impairment of
takaful participants' holder - -416,208 230,238
Due from other takaful / re - takaful operator's 88,062 31,342Less: provision for impairment of due from other
takaful / re - takaful operator's - -88,062 31,342
504,270 261,580
14 Prepayments
Prepaid re - takaful contribution ceded 80,922 81,686Prepaid monitoring charges (Tracking device) 18,708 23,693
99,630 105,379
(Unaudited) (Audited)
Rupees in thousand
30 June 2020 31 December 2019
Participants' Takaful Fund
(Unaudited) (Audited)
(Unaudited) (Audited)
Rupees in thousand
30 June 2020 31 December 2019
Participants' Takaful Fund
Six Months Report78
(Unaudited) (Audited) (Unaudited) (Audited)15 Cash and bank
Cash and cash equivalents:
Policy stamps in hand
Current and other accounts:
Profit or loss accounts 15.1
15.1 Saving accounts carry expected profit rates ranging from 5% to 11% (2019: 5% to 11%)
150
296,708296,858
-
91,89591,895
-
419,802419,802
68
434,590434,658
Rupees in thousand
30 June 202030 June 2020 31 December 201931 December 2019
Participants' Takaful FundOperator's Takaful Fund
Note
16 Takaful / re - takaful payables
Due to takaful participants' holders 3,252 3,311Due to other takaful / re - takaful operator's 64,811 35,202
68,063 38,513
(Unaudited) (Audited)
Rupees in thousand
30 June 2020 31 December 2019
Participants' Takaful Fund
Window Takaful Operations
Notes to the Condensed Interim Financial Statements (Unaudited)For The Six Month Period Ended June 30, 2020
17 Other creditors and accruals
Agents commission payable -Federal excise duty -Federal insurance fee 2,570Sales tax payable -Income tax deducted at source 11,355Accrued expenses -Others 4,937
18,862
18 Contingencies and commitments
There has been no significant change in the contingencies and commitments since the date of preceding published annual financial statements.
19 Net contribution revenue
Gross contribution written 636,726Wakala fee (172,369)Contribution net of wakala fee 464,358Unearned contribution revenue - opening 365,389Unearned contribution revenue - closing (401,662)Contribution earned 428,085
Less:Re - takaful contribution ceded 124,504Prepaid re - takaful contribution ceded - opening 64,494Prepaid re - takaful contribution ceded - closing (74,250)Re - takaful expense 114,748
Net contribution 313,337
-34,5003,195
-14,972
-15,66568,332
37,618--558
6,8422,8117,236
55,065
321,553(92,518)229,035479,666
(447,712)260,989
74,97276,921
(80,922)70,971
190,018
26,812--937
5,4277,186
10,66651,028
307,198(82,436)224,762397,381
(401,662)220,481
56,15575,264
(74,250)57,169
163,312
821,605(234,650)586,955377,586
(447,712)516,829
141,15181,686
(80,922)141,915374,914
(Unaudited) (Unaudited) (Unaudited) (Unaudited)Rupees in thousand
30 June 202030 June 2020 30 June 201930 June 2019
For six months period endedFor three months period ended
(Unaudited) (Audited) (Unaudited) (Audited)Rupees in thousand
30 June 202030 June 2020 December 31, 2019December 31, 2019
Participants' Takaful FundOperator's Takaful Fund
ADAMJEE INSURANCE 79
20 Re - takaful rebate
Re - takaful rebate receivedUnearned re - takaful rebate - openingUnearned re - takaful rebate - closingNet re-takaful rebate
21 Net Takaful Claims
Claims PaidOutstanding claims including IBNR - closingOutstanding claims including IBNR - openingClaim expenseLess:
Re - takaful and other recoveries receivedRe - takaful and other recoveries in respect of outstanding claims net of impairment (if any) closing Re - takaful and other recoveries in respect of outstanding claims net of impairment (if any) opening Re-takaful and other recoveries revenue
Net claim expense
14,680 15,508 (16,969) 13,219
119,269650,915
(253,192)516,992
11,438
408,870
(88,076)
332,232184,760
10,313 14,027 (14,200)
10,140
179,511217,448(229,570)167,389
32,592
75,336
(76,396)
31,532135,857
26,667 15,979 (16,969) 25,677
303,823650,915
(257,810)696,928
57,017
408,870
(102,336)
363,551333,377
21,906 12,735 (14,200) 20,441
314,066217,448(220,606)310,908
48,024
75,336
(62,534)
60,826250,082
The Operator manages the general takaful operations for the participants' and charges 28 % (2019: 28 %) for Fire & Property, 35 % (2019: 35 %) for Marine, Aviation & Transport, 32.5 % (2019: 27.5 %) for Motor, 25 % (2019: 25%) for Health and 25 % (2019: 25 %) for Miscellaneous classes, of gross contribution written including administrative surcharge as wakala fee against the services.
Window Takaful Operations
Notes to the Condensed Interim Financial Statements (Unaudited)For The Six Month Period Ended June 30, 2020
(Unaudited) (Unaudited) (Unaudited) (Unaudited)Rupees in thousand
30 June 202030 June 2020 30 June 201930 June 2019
For six months period endedFor three months period ended
22 Commission Expense
Commission paid or payableDeferred commission - openingDeferred commission - closingNet commission
23 Wakala Fee
Gross Wakala feeUnearned Wakala fee - OpeningUnearned Wakala fee - ClosingNet wakala fee
17,532 35,469 (29,029) 23,972
92,518185,787
(175,386) 102,919
25,011 40,024 (40,809)
24,226
82,436 150,737 (151,095)
82,078
39,538 41,931 (29,029) 52,440
234,650139,978
(175,386) 199,242
48,382 39,148 (40,809) 46,721
172,369 134,721 (151,095)
155,995
(Unaudited) (Unaudited) (Unaudited) (Unaudited)Rupees in thousand
30 June 202030 June 2020 30 June 201930 June 2019
For six months period endedFor three months period ended
(Unaudited) (Unaudited) (Unaudited) (Unaudited)Rupees in thousand
30 June 202030 June 2020 30 June 201930 June 2019
For six months period endedFor three months period ended
Six Months Report80
24 Management Expenses
Employee benefit costDepreciationAmortizationAdvertisement and sales promotionRent, rates and taxesCommunicationLegal and professional charges - business relatedTravelling and conveyance expensesShared expensesEntertainmentPrinting, stationery and postageAnnual supervision fee SECPBank chargesRepairs and maintenanceOthers
22,878658
1,302-
1,398338
-256
4,6805729
5518
1431,487
33,785
17,494621
1,1681,870
722323
-698
2,870848161370
1589
2,86330,112
44,7711,3042,603
-2,032
682-
1,0799,546
552215
1,10118
1,2543,392
68,549
35,5641,2312,2003,0341,490
690123
1,2706,3911,225
34574124
2654,801
59,394
(Unaudited) (Unaudited) (Unaudited) (Unaudited)Rupees in thousand
30 June 202030 June 2020 30 June 201930 June 2019
For six months period endedFor three months period ended
Window Takaful Operations
Notes to the Condensed Interim Financial Statements (Unaudited)For The Six Month Period Ended June 30, 2020
26 Other income
Operator's Takaful FundProfit on bank depositsOther Income
Participants' Takaful FundProfit on bank deposits
5,190-
5,190
9,0099,009
8,3585
8,363
8,6558,655
5,190-
5,190
20,49120,491
8,3585
8,363
15,03815,038
25 Investment income
Operator's Takaful FundProfit onMutual funds - dividend incomeMutual funds - Capital Gain
Participants' Takaful FundProfit onSukuks
243,5603,584
5,458 5,458
1,345-
1,345
1,279 1,279
243,5603,584
9,947 9,947
1,345-
1,345
2,475 2,475
(Unaudited) (Unaudited) (Unaudited) (Unaudited)Rupees in thousand
30 June 202030 June 2020 30 June 201930 June 2019
For six months period endedFor three months period ended
(Unaudited) (Unaudited) (Unaudited) (Unaudited)Rupees in thousand
30 June 202030 June 2020 30 June 201930 June 2019
For six months period endedFor three months period ended
ADAMJEE INSURANCE 81
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.
27 Transactions with related parties
Window Takaful Operations
Notes to the Condensed Interim Financial Statements (Unaudited)For The Six Month Period Ended June 30, 2020
i) Transactions
Subsidiary Company
Contribution underwritten 1,551 1,113 Contribution received 1,552 943 Claims paid 639 181
Other related parties
Contribution underwritten 83,155 77,283 Contribution received 89,272 84,164 Claims paid 24,043 26,216 Income on bank deposits 9,245 1,504
ii) Period end balances
Subsidiary Company
Balances payable 339 25 Balances receivable - 170 Contribution received in advance - 178
Other related parties
Balances receivable 9,624 9,731 Balances payable 25,112 10,690 Cash and bank balances 249,146 16,561 Contribution received in advance 325 -
(Unaudited) (Unaudited)
Rupees in thousand
30 June 2020 30 June 2019
Six Months Report82
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 contributionGross Contribution WrittenWakala feeContribution net of wakala feeContribution earnedTakaful contribution ceded to re - takafulNet takaful contributionRe-takaful rebateNet underwriting income
Takaful claimsRe - takaful and other recoveriesNet claimsContribution deficiency reserveDirect expenseNet takaful claims and expenses
(Deficit) / surplus before investment incomeOther incomeInvestment incomeMudarib feeSurplus transferred to Balance of PTF
Corporate segment assetsCorporate unallocated assetsTotal assets
Corporate segment liabilitiesCorporate unallocated liabilitiesTotal liabilities
83,882(10,866)
(722)
72,294528
72,822(20,390)52,43263,781
(71,704)(7,923)14,2146,291
(364,823)334,756(30,067)
(400)(30,467)
(24,176)
439,882-
439,882
442,512-
442,512
23,262(3,000)
(201)
20,061-
20,061(7,021)13,04013,589
(16,190)(2,601)3,467
866
(552)56917
(87)(70)
796
17,239-
17,239
7,925-
7,925
383,166(46,123)(2,937)
334,106-
334,106(108,585)225,521241,183(13,994)227,189
-227,189
(160,649)28,153
(132,496)
(28,296)(160,792)
66,397
243,205-
243,205
410,455-
410,455
329,100(1,783)(3,241)
324,076-
324,076(81,019)243,057160,447
-160,447
-160,447
(170,960)-
(170,960)(25,716)(1,371)
(198,047)
(37,600)
198,906-
198,906
326,838-
326,838
74,652(9,388)
(646)
64,6185,922
70,540(17,635)52,90537,829
(40,027)(2,198)7,9965,798
5673
129
(325)(196)
5,602
94,830-
94,830
63,105-
63,105
894,062(71,160)(7,747)
815,1556,450
821,605(234,650)586,955516,829
(141,915)374,91425,677
400,591
(696,928)363,551
(333,377)(25,716)(30,479)
(389,572)
11,0199,947
20,491(1,989)39,468
994,062592,319
1,586,381
1,250,835214,792
1,465,627
Rupees in thousand
June 30, 2020 (Unaudited)
Fire & property
Marine aviation & transport
Motor Accident & health Miscellaneous Total
Participants' Takaful Fund
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.
28 Segment Information
Window Takaful Operations
Notes to the Condensed Interim Financial Statements (Unaudited)For The Six Month Period Ended June 30, 2020
ADAMJEE INSURANCE 83
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 contributionGross Contribution WrittenWakala feeContribution net of wakala fee
Contribution earnedRe - takaful expenseNet contribution revenueNet rebate on re - takafulNet underwriting income
Takaful claimsRe - takaful and other recoveriesNet claimsContribution deficiency reserveDirect expenseNet takaful claims and expenses
Surplus / (deficit) before investment incomeOther incomeInvestment incomeMudarib feeSurplus transferred to Balance of PTF
Corporate segment assetsCorporate unallocated assetsTotal assets
Corporate segment liabilitiesCorporate unallocated liabilitiesTotal liabilities
75,903(10,380)
(649)
64,874525
65,399(18,312)47,087
53,537(61,214)(7,677)12,1634,486
(19,039)15,994(3,045)
-(308)
(3,353)
1,133
168,093-
168,093
160,639-
160,639
15,974(2,184)
(137)
13,653108
13,761(4,816)8,945
9,272(11,076)(1,804)2,356
552
(5,699)4,565
(1,134)-(40)
(1,174)
(622)
14,798-
14,798
12,411-
12,411
461,054(63,050)(3,941)
394,063-
394,063(108,367)285,696
251,824(8,677)
243,147-
243,147
(173,594)31,972
(141,622)-
(24,537)(166,159)
76,988
259,075-
259,075
526,003-
526,003
121,846(16,663)(1,041)
104,142-
104,142(26,034)78,108
84,229-
84,229-
84,229
(103,359)-
(103,359)(4,294)
(276)(107,929)
(23,700)
65,903-
65,903
172,859-
172,859
68,960(9,430)
(589)
58,941420
59,361(14,840)44,521
29,223(33,781)(4,558)5,9221,364
(9,217)8,295(922)-
(159)(1,081)
283
77,713-
77,713
72,068-
72,068
743,737(101,707)
(6,357)
635,6731,053
636,726(172,369)464,358
428,085(114,748)313,33720,441
333,778
(310,908)60,826
(250,082)(4,294)
(25,320)(279,696)
54,08215,0382,475
-71,595
585,582605,006
1,190,588
943,980165,324
1,109,304
Rupees in thousand
June 30, 2019 (Unaudited)
Fire & property
Marine aviation & transport
MotorAccident &
health Miscellaneous Total
Participants' Takaful Fund
Rupees in thousand
December 31, 2019 (Audited)
Fire & property
Marine aviation & transport
Motor Accident & health Miscellaneous Total
Participants' Takaful Fund
Window Takaful Operations
Notes to the Condensed Interim Financial Statements (Unaudited)For The Six Month Period Ended June 30, 2020
Six Months Report84
Wakala fee incomeLess : Commission expense Management expenses
Mudarib's share of PTF investment incomeInvestment incomeDirect expensesOther incomeProfit before tax
Corporate segment assetsCorporate unallocated assetsTotal assets
Corporate segment liabilitiesCorporate unallocated liabilitiesTotal liabilities
Wakala fee incomeLess : Commission expense Management expenses
Mudarib's share of PTF investment incomeInvestment incomeOther expensesOther incomeProfit before tax
Corporate segment assetsCorporate unallocated assetsTotal assets
Corporate segment liabilitiesCorporate unallocated liabilitiesTotal liabilities
24,804(13,343)(17,442)(5,981)
7,971-
7,971
15,470-
15,470
20,820(10,037)(12,759)(1,976)
21,854-
21,854
19,884-
19,884
7,317(3,003)(3,926)
388
123-123
324-324
4,993(2,295)(2,918)
(220)
2,216-
2,216
620-620
101,030(24,456)(31,968)44,606
13,668-
13,668
98,634-
98,634
92,395(25,018)(31,804)35,573
63,741-
63,741
91,079-
91,079
53,482(5,612)(7,336)40,534
3,596-
3,596
49,722-
49,722
28,074(5,963)(7,580)14,531
16,738-
16,738
22,185-
22,185
12,609(6,026)(7,877)(1,294)
3,671-
3,671
11,236-
11,236
9,713(3,408)(4,333)1,972
8,315-
8,315
6,211-
6,211
199,242(52,440)(68,549)78,2531,9893,584
(1,980)5,190
87,036
29,029518,612547,641
175,38681,384
256,770
155,995(46,721)(59,394)49,880
-1,345
(1,729)8,363
57,859
112,864313,427426,291
139,97955,893
195,872
Rupees in thousand
June 30, 2020 (Unaudited)
Fire & property
Marine aviation & transport
MotorAccident &
health Miscellaneous Total
Operator's Takaful Fund
Rupees in thousand
December 31, 2019 (Audited)
Fire & property
Marine aviation & transport
Motor Accident & health Miscellaneous Total
Operator's Takaful Fund
Window Takaful Operations
Notes to the Condensed Interim Financial Statements (Unaudited)For The Six Month Period Ended June 30, 2020
Rupees in thousand
June 30, 2019 (Unaudited)
Fire & property
Marine aviation & transport
MotorAccident &
health Miscellaneous Total
Operator's Takaful Fund
ADAMJEE INSURANCE 85
Financial assets not measured at fair value
Investments - Debt securities 11 125,000 - - - 125,000 - - - - Loan and other receivables 12 - 28,809 - - 28,809 - - - - Takaful / re - takaful receivables 13 - 504,270 - - 504,270 - - - - Re - takaful recoveries against outstanding claims - 376,323 - - 376,323 - - - - Salvage recoveries accrued - 32,547 - - 32,547 - - - - Cash and bank deposits 15 - - 419,802 - 419,802 - - - -
125,000 941,949 419,802 - 1,486,751 - - - -
Financial liabilities not measured at fair value -
Outstanding claims including IBNR 21 - - - 650,915 650,915 - - - - Takaful / re - takaful payables - - - 68,063 68,063 - - - - Other creditors and accruals 17 - - - 15,665 15,665 - - - -
- - - 734,643 734,643 - - - -
Note
Held to maturity
Loans and receivables
Cash and cash
equivalents
Other financial liabilities
Total Level 1 Level 2 Level 3 Total
Fair valueCarrying amount
June 30, 2020 (Unaudited)Participants' Takaful Fund
Rupees in thousand
29 Fair values 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 and fair value hierarchy that reflects the significance of the inputs used in making the measurements of fair value hierarchy 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 either directly (that is, derived from prices) (Level 2)
- 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.
Window Takaful Operations
Notes to the Condensed Interim Financial Statements (Unaudited)For The Six Month Period Ended June 30, 2020
Six Months Report86
Financial assets not measured at fair value
Investments - Debt securities 11Loan and other receivables 12Takaful / re - takaful receivables 13Re - takaful recoveries against outstanding claimsSalvage recoveries accruedCash and bank deposits 15
Financial liabilities not measured at fair value
Outstanding claims including IBNR 21Takaful / re - takaful payablesWakala and mudarib fee payableOther creditors and accruals 17
125,000------
125,000
----
-
-21,655
261,58088,70613,631
-
385,572
----
-
-----
434,658-
434,658
----
-
--------
257,81038,51370,9334,937
372,193
125,00021,655
261,58088,70613,631
434,658
945,230
257,81038,51370,9334,937
372,193
- - - - - -
-
- - - -
-
- - - - - -
-
- - - -
-
- - - - - -
-
- - - -
-
- - - -
- - -
- - - -
-
Note
Held to maturity
Loans and receivables
Cash and cash
equivalents
Other financial liabilities
Total Level 1 Level 2 Level 3 Total
Fair valueCarrying amount
December 31, 2019 (Audited)
Participants' Takaful Fund
Rupees in thousand
Window Takaful Operations
Notes to the Condensed Interim Financial Statements (Unaudited)For The Six Month Period Ended June 30, 2020
ADAMJEE INSURANCE 87
Financial assets measured at fair value
Investments - Equity securities 10
Financial assets not measured at fair value
Loan and other receivables 12Cash and bank deposits 15
-
Financial liabilities not measured at fair value
Other creditors and accruals 17
Financial assets measured at fair value
Investments - Equity securities 10
Financial assets not measured at fair value
Loan and other receivables 12Wakala and mudarib fee receivableCash and bank deposits 15
Financial liabilities not measured at fair value
Other creditors and accruals 17
32,958
- - - -
32,958
-
-
--
34,647
-
-
34,647 -
1,898-
1,898
-
-
-
3,211 70,933
-
74,144
-
-
-
-296,858
296,858
-
-
-
- -
91,895 -
91,895
-
-
-
--
-
47,665
47,665
-
- - - - -
44,664
44,664
34,647
1,898296,858
333,403
47,665
47,665
32,958
3,211 70,933 91,895
198,997
44,664
44,664
-
- -
-
-
-
- - -
-
-
-
34,647
- -
34,647
-
-
32,958
- - -
32,958
-
-
-
- -
-
-
-
-
- - -
-
-
-
34,647
- -
34,647
-
-
32,958
- - - -
32,958
-
-
-
Note
Available-for-sale
Loans and receivables
Cash and cash
equivalents
Other financial liabilities
Total Level 1 Level 2 Level 3 Total
Fair valueCarrying amount
June 30, 2020 (Unaudited)Operator's Takaful Fund
Rupees in thousand
Note
Available-for-sale
Loans and receivables
Cash and cash
equivalents
Other financial liabilities
Total Level 1 Level 2 Level 3 Total
Fair valueCarrying amount
December 31, 2019 (Audited)Operator's Takaful Fund
Rupees in thousand
Window Takaful Operations
Notes to the Condensed Interim Financial Statements (Unaudited)For The Six Month Period Ended June 30, 2020
Six Months Report88
30 Movement in Investment - Available for saleAt the beginning of previous year 29,930 -Additions 1,144Disposals - -Fair value on gains(excluding net realized gain) 1,884 -At the beginning of current period 32,958Additions 34,627 -Disposals (31,048) -Fair value on gains
(excluding net realized gain) (1,891) -At the end of current period 34,647
125,000
125,000
125,000
Rupees in thousand
Available for sale Held to Maturity
Participants' Takaful FundOperator's Takaful Fund
Window Takaful Operations
Notes to the Condensed Interim Financial Statements (Unaudited)For The Six Month Period Ended June 30, 2020
Muhammad Ali ZebManaging Director &
Chief Executive Officer
Umer ManshaChairman
Muhammad Asim NagiChief Financial Officer
Ibrahim ShamsiDirector
Shaikh Muhammad JawedDirector
31 Subsequent events - non adjusting event
32 Date of authorization for issue
There are no significant events that need to be disclosed for the period ended June 30, 2020.
These condensed financial statements were authorized for issue on 24 August 2020 by the Board of Directors of the Operator.
33 General
33.2 Figures have been rounded off to the nearest thousand rupees unless other wise stated.
33.1 Corresponding figures have been rearranged and reclassified for better presentation, where considered necessary.