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Quarterly ReportMarch 31, 2015
PrecautionOver Caution
Con
dens
ed In
terim
Fina
ncia
l Sta
tem
ents
for
the
Firs
t Q
uart
er E
nded
SERVING YOU SINCE 1953
1
Table of Contents
IGI INSURANCE FIRST QUARTER REPORT 2015
Shareholder’s Information
Pattern of Shareholding
Directors’ Report to the Shareholders on Unconsolidated
Unconsolidated Condensed Interim Financial Information
Condensed Interim Financial Information
Directors’ Report to the Shareholders on Consolidated
Consolidated Condensed Interim Financial Information
Condensed Interim Financial Information
Company Information2 -
3 -
5 -
22 -
23 -
40 -
41 -
Company Information
2
AuditorsA.F. Ferguson & Co.Chartered Accountants
Internal AuditorsErnst & Young Ford RhodesSidat HyderChartered Accountants
Legal AdvisorsRamday Law AssociatesHassan & HassanLari & Company
Share RegistrarFAMCO Associates (Private)Limited8-F, Next to Hotel Faran,Nursery, Block-6, P.E.C.H.S.,Shahrah-e-Faisal, Karachi
Registered & Head Office7th Floor, The Forum,Suite Nos. 701-713, G-20,Block-9,Khayaban-e-Jami, Clifton,Karachi-75600, Pakistanwww.igiinsurance.com.pk
Standard Chartered Bank(Pakistan) LimitedFaysal Bank LimitedNational Bank of PakistanHabib Metropolitan BankNIB Bank Limited
Re-Insurance &Co-Insurance Committee
(Chairman)
Syed Hyder Ali (Chairman)
Tahir MasaudFaisal Khan (Secretary)
Human Resources &Compensation Committee
Syed Yawar Ali (Chairman)
Syed Shahid AliSyed Hyder AliTahir MasaudKaifee Siddiqui (Secretary)
Strategy CommitteeSyed Babar Ali (Chairman)
Shamim Ahmad KhanSyed Yawar AliSyed Hyder AliTahir Masaud (Secretary)
Enterprises RiskManagement Committee
Tahir Masaud (Chairman)
Faisal KhanUsman Saifi (Secretary)
Board of DirectorsSyed Babar Ali (Chairman)
Shamim Ahmad KhanSyed Kamal AliSyed Yawar AliSyed Shahid AliSyed Hyder AliTahir Masaud
Chief Executive OfficerTahir Masaud
Chief Financial OfficerUsman Saifi
Company SecretaryHaider Raza
Audit CommitteeShamim Ahmad Khan (Chairman)
Syed Yawar AliSyed Hyder AliHaider Raza (Secretary)
Investment CommitteeSyed Hyder Ali (Chairman)
Shamim Ahmad KhanSyed Kamal AliSyed Yawar AliTahir MasaudUsman Saifi (Secretary)
Claims Committee
Shamim Ahmad Khan (Chairman)
Tahir MasaudMoeez KarimUsman SaifiMir Mehmood Ali (Secretary)
Underwriting CommitteeSyed Hyder Ali (Chairman)
Tahir MasaudMoeez KarimFaisal KhanHaider AliSyed Matin Ahmed (Secretary)
BankersAllied Bank LimitedHabib Bank LimitedJS Bank LimitedKASB Bank LimitedMCB Bank Limited
ContactUAN: 111-308-308Toll Free No: 0800-2-34-34FAX: 92-21-35301772
3
Directors’ Report to the Shareholders on Unconsolidated CondensedInterim Financial Information
IGI INSURANCE FIRST QUARTER REPORT 2015
For and on behalf of the Board
Syed Babar AliChairman
Karachi: April 22, 2015
The Directors of IGI Insurance take pleasure in presenting their review together with the unconsolidated
condensed interim financial information (un-audited) for the quarter ended March 31, 2015.
During the current period, your Company achieved growth in gross written premium of 12%, Rs 834 million
as compared to Rs 746 million in the corresponding period of 2014. There was a reduction in net claims
by 12%in the current period. Underwriting profitability was Rs 86 million in the current period as compared
to the Rs 83 million in the corresponding period of 2014. Due to provision for impairment on account of
temporary decline in the share prices of some of the quoted investments, the Company posted a loss
before taxation amounting to Rs 54 million during the current period. However, core fundamentals of the
business remain robust and the management is confident of continuing to deliver strong underwriting
results in the coming quarters.
We cherish the support and patronage extended by our business partners and all stakeholders and
appreciates the dedicated and sincere efforts of our employees.
UNCONSOLIDATED
Condensed InterimFinancial Informationfor the Quarter Ended
March 31, 2015
Unconsolidated Condensed Interim Balance Sheet
6
Share capital and reserves
Authorised share capital[200,000,000 (2014: 200,000,000) Ordinary
shares of Rs.10/- each]
Issued, subscribed and paid up share capitalUnappropriated profit Reserves
2,000,000
1,226,8951,881,4718,470,780
2,000,000
1,226,8952,174,6858,102,711
11,504,291 11,579,146Underwriting provisions
Provision for outstanding claims [including IBNR]Provision for unearned premiumCommission income unearned
Creditors and accruals
Premium received in advanceAmounts due to other insurers / reinsurersAccrued expensesSundry creditors
BorrowingsShort term finance - securedLong term finance - secured
Other LiabilitiesUnclaimed dividend
TOTAL EQUITY AND LIABILITIES
CONTINGENCIES 7
640,512648,17172,750
1,361,433
571,767929,551108,617
1,609,935
330350,027117,584316,834
330513,28899,896
331,029
8,675
3,115,849
944,543 784,775
TOTAL LIABILITIES
14,620,140 14,490,090
-550,000550,000
79,830675,000754,830
8,676
2,910,944
The annexed notes 1 to 14 form an integral part of these condensed Interim unconsolidated financial statements.
2,696Deferred liabilities
Deferred taxation 1,230
31 March2015
31 December2014
Note(Rupees in thousand)
Principal Officerand Chief Executive
DirectorDirectorChairman
Un-audited Audited
Cash and bank deposits
Cash and other equivalentsCurrent and other accountsDeposits maturing within 12 months
Investments
Investment property
7
as at March 31, 2015 (Un-audited)
IGI INSURANCE FIRST QUARTER REPORT 2015
Fixed assets
TangibleFurniture, fixtures and office equipmentsBuildingsMotor vehicles
IntangiblesComputer softwares
Current assets - others
Premiums due but unpaid - unsecuredAmounts due from other insurers / reinsurers - unsecuredAccrued income on investments and depositsReinsurance recoveries against outstanding claimsPrepayments: - prepaid reinsurance premium ceded - othersTaxation - payments less provisionSundry receivables
TOTAL ASSETS
Principal Officerand Chief Executive
DirectorDirectorChairman
8
21546,539
377,000423,754
12,089,230
124,379
43156
315,000315,199
12,196,544
127,363
31 March2015
31 December2014
Note(Rupees in thousand)
10
406,598
387,0853,736
292,118
468,53619,90280,56589,390
1,747,930
24,122155,19951,900
231,221
3,626
275,139
474,76627,784
336,040
309,85819,51995,45072,250
1,610,806
25,468157,05553,333
235,856
4,322
14,620,140 14,490,090
Un-audited Audited
8
Unconsolidated Condensed Interim Profit and Loss Account for the First Quarter Ended March 31, 2015 (Un-audited)
Revenue accountNet premium revenueNet claimsManagement ExpensesNet commission
Underwriting result
Net investment incomeRental incomeReturn on bank balancesOther incomeFinancial chargesGeneral and administrative expenses
(Loss) / Profit before taxationTaxationLoss after taxationOther comprehensive incomeTotal comprehensive (Loss) / income
Balance of unappropriated profit at commencement of the period
The annexed notes 1 to 14 form an integral part of these condensed Interim unconsolidated financial statements.
(Loss) / protif after taxationOther comprehensive incomeTransferred from general reserve
Profit and loss appropriation account
Balance of unappropriated profit at end of the period
(Loss) / Earnings per share - basic and diluted
276,312(131,611)
(84,734)25,702
85,669
25,854(17,835)
(6,780)1,986
3,225
24,835(21,970)
(5,310)(825)
(3,270)
144,940(71,588)(27,429)(16,264)
29,659
54,952(16,999)(11,178)
10,728
37,503
25,731(3,219)
(34,037)30,077
278,491(149,386)
(83,060)37,114
83,159
2015Aggregate
Marine,aviation and
Transport
Health Miscella-neous
2014Aggregate
Motor Fire andPropertyDamage
Rupees in thousand
9
Note
13
-----------Rupees-----------
(102,107)947
5,543193
(15,399)(28,629)
(139,452)
(53,783)(21,072)(74,855)
-(74,855)
(74,855)-
368,069293,214
2,174,685
1,881,471
(0.61)
3,0201,1267,2674,824
(7,319)(41,663)(32,745)
50,414(31,162)
19,252-
19,252
19,252-
167,304186,556
1,249,810
1,063,254
0.16
Principal Officerand Chief Executive
DirectorDirectorChairman
18,552
Quarter Ended
Balance as at January 1, 2014
Profit after taxation for the period
Other comprehensive income for the periodTotal comprehensive income for the quarter ended March 31, 2014
Transfer from general reserve to unappropriated profit
Transfer from general reserve to reserve for bonus sharesBalance as at March 31, 2014
Profit after taxation for the nine months ended December 31, 2014
Other comprehensive income for the period- Re-measurement of post employment benefit obligations - net of taxTotal comprehensive income for the nine month ended December 31, 2014
Transactions with owners, recorded directly in equity
Final dividend for the year ended December 31, 2013 - Rs. 1.5 per shareBonus shares issued for the year ended December 31, 2013
Balance as at December 31, 2014
Loss after taxation for the period
Other comprehensive income for the periodTotal comprehensive loss for the quarter ended March 31, 2015
Transfer from general reserve to unappropriated profit
Balance as at March 31, 2015
The annexed notes 1 to 14 form an integral part of these condensed Interim unconsolidated financial statements.
9
Unconsolidated Condensed Interim Statement of Changes in Equity for the First Quarter Ended March 31, 2015 (Un-audited)
IGI INSURANCE FIRST QUARTER REPORT 2015
GeneralReserve
Unappro-priatedProfits
( R u p e e s i n t h o u s a n d )
Reserves
Issued,subscribedand paid-up sharecapital
Premiumon Issueof Shares
OtherCapital
Reserves
Capital Reserves RevenueReserves
TotalReserve
for BonusShares
1,115,359
-
--
-
-1,115,359
-
--
-111,536111,536
1,226,895
-
--
-
1,226,895
35,762
-
--
-
-35,762
-
--
---
35,762
-
--
-
35,762
-
-
--
-
111,536111,536
-
--
-(111,536)(111,536)
-
-
--
-
-
33,267
-
--
-
-33,267
-
--
---
33,267
-
--
-
33,267
8,680,591
-
--
(167,304)
(111,536)8,401,751
-
--
---
8,401,751
-
--
(368,069)
8,033,682
1,063,254
19,252
-19,252
167,304
-1,249,810
803,549
(4,584)798,965
(167,304)-
(167,304)
1,881,471
(74,855)
-(74,855)
368,069
2,174,685
10,928,233
19,252
-19,252
-
-10,947,485
803,549
(4,584)798,965
(167,304)-
(167,304)
11,579,146
(74,855)
-(74,855)
-
11,504,291
Principal Officerand Chief Executive
DirectorDirectorChairman
Unconsolidated Condensed Interim Statement of Cash Flows
10
Operating activities
Premiums receivedReinsurance premiums paidClaims paidReinsurance and other recoveries receivedCommissions paidCommissions received
a) Underwriting activities
Income tax paidGeneral management expenses paidOperating payments - net
b) Other operating activities
Total cash generated from all operating activities
Investment activitiesProfit / return receivedDividends receivedPayments for investmentsFixed capital expenditureProceeds from disposal of fixed assets
Total cash generated from investing activities
Financing activities
Dividends paidLoan repaidFinancial charges paid
Total cash used in financing activities
Net cash generated from all activities
Cash at beginning of the period
Cash at the end of the period
589,241(72,359)
(175,939)50,848
(29,831)85,900
447,860
(6,886)(125,266)(41,783)
(173,935)
19,9713,915
(2,341)(27,943)
8,046
(1,046)-
(14,456)
273,925
1,648
(15,502)
260,071
(75,509)
184,562
Net cash generated from underwriting activities
Net cash used in other operating activities
The annexed notes 1 to 14 form an integral part of these condensed Interim unconsolidated financial statements.
702,255(183,758)(284,653)
128,219(32,301)
94,004423,766
(4,721)(103,887)(13,809)
(122,417)
33,4302,998
-(5,822)
2,335
-(125,000)(20,905)
301,349
32,941
(145,905)
188,385
235,369
423,754
2015 2014(Rupees in thousand)
Principal Officerand Chief Executive
DirectorDirectorChairman
Restated
Quarter Ended
11
as at March 31, 2015 (Un-audited)
IGI INSURANCE FIRST QUARTER REPORT 2015
The annexed notes 1 to 14 form an integral part of these condensed Interim unconsolidated financial statements.
2015 2014(Rupees in thousand)
Principal Officerand Chief Executive
DirectorDirectorChairman
Reconciliation to profit and loss account
Operating cash flows
Depreciation expense
Financial charges
Gain on disposal of fixed assets
Increase in other assets
Increase in liabilities other than term finances
Provision for impairment in the value of
available for sale investments
Dividend and other investment income
(Loss) / Profit after taxation
273,925
(10,201)
(7,319)
4,823
116,802
(371,627)
(1,920)
14,769
19,252
301,349
(11,986)
(15,399)
193
161,172
(415,250)
(107,421)
12,487
(74,855)
Cash comprises of cash in hand, policy stamps, bank balances and short term finance.
Definition of cash
Current and other accounts - Current accounts - Saving accounts
Short term running finance
Deposits maturing within 12 months
40484
488
255,000
8146,458
-423,754
377,000
46,539
Cash for the purpose of statement of cash flows consists of:
Cash and other equivalents - cash in hand 214215
(71,140)184,562
Quarter Ended
12
Unconsolidated Condensed Interim Statement of Premiums for the First Quarter Ended March 31, 2015 (Un-audited)
The annexed notes 1 to 14 form an integral part of these condensed Interim unconsolidated financial statements.
Principal Officerand Chief Executive
DirectorDirectorChairman
Prepaid ReinsurancePremium Ceded
Business underwritten inside Pakistan
Direct and facultative
Fire and Property Damage
Marine, Aviation and Transport
Motor
Health
Miscellaneous
Total
Class
370,897
121,810
231,054
36,067
73,886
833,714
276,469
18,177
231,206
40,391
81,928
648,171
432,652
31,553
316,197
51,623
97,526
929,551
214,714
108,434
146,063
24,835
58,288
552,334
336,382
59,492
4,306
-
34,521
434,701
245,743
9,767
226
-
54,121
309,857
393,142
15,777
3,409
-
56,208
468,536
188,983
53,482
1,123
-
32,434
276,022
25,731
54,952
144,940
24,835
25,854
276,312
22,879
55,535
128,394
50,504
21,180
278,491
Net Premium Revenue
PremiumsWritten
Unearned PremiumsReserve
Opening Closing
PremiumsEarned
ReinsuranceCeded
Opening Closing
ReinsuranceExpense 31 March
201531 March
2014
(Rupees in thousand)
13
Unconsolidated Condensed Interim Statement of Claims for the First Quarter Ended March 31, 2015 (Un-audited)
IGI INSURANCE FIRST QUARTER REPORT 2015
Business underwritten inside Pakistan
Direct and facultative
Fire and Property Damage
Marine, Aviation and Transport
Motor
Health
Miscellaneous
Total
Class
78,828
55,791
76,057
20,963
53,014
284,653
214,057
158,427
127,291
37,273
103,464
640,512
169,519
138,380
122,822
38,280
102,766
571,767
34,290
35,744
71,588
21,970
52,316
215,908
70,238
23,833
-
-
34,148
128,219
181,486
61,513
14,687
-
78,354
336,040
142,319
56,425
14,687
-
78,687
292,118
31,071
18,745
-
-
34,481
84,297
3,219
16,999
71,588
21,970
17,835
131,611
14,806
5,328
80,456
42,354
6,443
149,386
Net Claims Expense Claimspaid Outstanding Claims
Opening Closing
Claimsexpense
Reinsuranceand otherrecoveriesreceived
Opening Closing
Reinsuranceand otherrecoveriesrevenue
31 March2015
31 March2014
(Rupees in thousand)
Reinsurance andother recoveriesin respect of out-standing claims
The annexed notes 1 to 14 form an integral part of these condensed Interim unconsolidated financial statements.
Principal Officerand Chief Executive
DirectorDirectorChairman
14
Unconsolidated Condensed Interim Statement of Expenses for the First Quarter Ended March 31, 2015 (Un-audited)
The annexed notes 1 to 14 form an integral part of these condensed Interim unconsolidated financial statements.
Principal Officerand Chief Executive
DirectorDirectorChairman
Business underwritten inside Pakistan
Direct and facultative
Class
Fire and Property Damage
Marine, Aviation and Transport
Motor
Health
Miscellaneous
Total
(Rupees in thousand)
-
-
-
-
-
-
-
-
-
-
-
-
2,133
7,277
16,264
825
5,936
32,435
36,170
18,455
43,693
6,135
12,716
117,169
34,037
11,178
27,429
5,310
6,780
84,734
(115)
1,446
37,789
5,199
1,627
45,946
3,960
450
43,693
6,135
4,794
59,032
32,210
18,005
-
-
7,922
58,137
2,133
7,277
16,264
825
5,936
32,435
31 March2014
CommissionsPaid or
Payable
DeferredCommission
Opening Closing 31 March2015
NetCommission
Expenses
OtherManagement
Expenses Underwriting
Expense
*Commissionsfrom
ReinsurersNet underwriting
expense
* Commissions from reinsurers is arrived after taking impact of opening and closing unearned commission.
15
Unconsolidated Condensed Interim Statement of Investment Income for the First Quarter Ended March 31, 2015 (Un-audited)
IGI INSURANCE FIRST QUARTER REPORT 2015
The annexed notes 1 to 14 form an integral part of these condensed Interim unconsolidated financial statements.
Income from non-trading investments
Return on Government Securities
Dividend income on available for sale investments
Provision for impairment in value of investments - net
Less: Investment related expenses
Net investment income
2015 2014(Rupees in thousand)
3,946
2,998
(107,421)
(1,630)
(102,107)
3,587
3,915
(1,920)
(2,562)
3,020
Principal Officerand Chief Executive
DirectorDirectorChairman
Quarter Ended
16
Notes to the Condensed Interim Financial Information
IGI Insurance Limited ("the Company"), a Packages Group Company, was incorporated as a public limited companyin 1953 under Companies Ordinance, 1984. The Company is listed on the Karachi, Lahore and Islamabad StockExchanges and is engaged in providing general insurance services in spheres of Fire, Marine, Motor, Health andMiscellaneous. The registered office of the Company is situated at 7th Floor, The Forum, Suite No. 701-713, G-20,Block 9, Khayaban-e-Jami, Clifton, Karachi.
During the preceding year, the Company acquired control of ALICO Pakistan by acquiring 34,838,687 ordinary shares(representing 69.677% of the issued and paid up capital) of ALICO Pakistan on April 10, 2014. ALICO Pakistan becamea subsidiary of the Company as at the aforementioned date and its name has been changed to IGI Life Insurance Limited(IGI Life). The remaining 6,148,003 shares (representing 12.293 % of the issued and paid up capital) of IGI Life willbe acquired on the third anniversary of the acquisition date or earlier as per the terms and conditions of Share PurchaseAgreement (SPA).
STATUS AND NATURE OF BUSINESS1.
These condensed interim unconsolidated financial statements are un-audited and are being submitted to the shareholdersin accordance with the listing regulations of Karachi, Lahore and Islamabad Stock Exchanges and section 245 of theCompanies Ordinance, 1984. These condensed interim unconsolidated financial statements of the Company have beenprepared in accordance with the approved accounting standards as applicable in Pakistan for interim financial reportingand in the format prescribed by the Securities and Exchange Commission of Pakistan in its circular No. 7 of 2003.
These condensed interim unconsolidated financial statements do not include all the information and disclosures requiredin the annual financial statements, and should be read in conjunction with the Company's annual financial statements forthe year ended 31 December 2014.
BASIS OF PRESENTATION2.
The accounting policies and methods of computation adopted in the preparation of these condensed interim unconsolidationfinancials statements are the same as those applied in the preparation of the annual financial statements for the yearended 31 December 2014.
ACCOUNTING POLICIES3.
The preparation of the condensed interim unconsolidated financial statements requires management to make judgements,estimates and assumptions that affect the application of accounting policies and the reported amounts of assets andliabilities, income and expenses. Actual results may differ from these estimates.
In preparing these condensed interim unconsolidated financial statements, the significant judgements made by managementin applying the Company's accounting policies and the key sources of estimating uncertainty were the same as thoseapplied to the annual financial statements for the year ended 31 December 2014.
SIGNIFICANT ESTIMATES AND JUDGEMENT4.
The financial and insurance risk management objectives and policies are consistent with those disclosed in the annualfinancial statements of the Company for the year ended 31 December 2014.
FINANCIAL AND INSURANCE RISK MANAGEMENT5.
17
for the First Quarter Ended March 31, 2015 (Un-audited)
IGI INSURANCE FIRST QUARTER REPORT 2015
No provision has been made in respect of premium deficiency reserve as the unearned premium reserve for each classof business as at period end is adequate to meet the expected future liability, after reinsurance, from claims and otherexpenses, expected to be incurred after the balance sheet date in respect of policies in force at the balance sheet date.
PREMIUM DEFICIENCY RESERVE6.
There is no change in the status of contingencies as disclosed in the annual financial statements of the Company forthe year ended 31 December 2014.
CONTINGENCIES - TAXATION7.
INVESTMENTS8.
Investments in subsidiary
Investments in associates
Held to maturity investments
Available for sale
- Quoted
- Unquoted
31 March2015
(Rupees in thousand)
31 December2014
The investments comprise of the following:
8.1
8.1
8.1
729,846
3,641,515
124,215
7,477,890
115,764
7,593,654
12,089,230
729,846
3,710,955
124,109
7,476,837
154,797
7,631,634
12,196,544
Market value of investments as at 31 March 2015 is Rs. 62,254 million (31 December 2014 : Rs. 62,770 million).8.1
During the current period, the Board of Directors of certain companies, in which the Company holds investment, haverecommended final dividend which is subject to approval of shareholders of such companies in their respective AnnualGeneral Meetings scheduled to be held in the subsequent period. Once approved by the shareholders of these companies,the Company will receive dividend income of Rs. 596 million in the subsequent period.
INVESTMENT INCOME9.
Opening book valueAdditions during the period / yearNet book value of disposal during the period / yearDepreciation for the period / yearClosing book value
31 March2015
31 December2014
18
Notes to the Condensed Interim Financial Information
235,8565,821
(2,151)(8,305)
231,221
(Rupees in thousand)
216,93662,983(9,861)
(34,202)235,856
Related parties comprises associated undertakings, other related companies, directors of the Company andpost employment benefit plans. The Company in the normal course of business carries out transactions withvariuos related parties. All transactions with related parties have been carried out on commercial terms andconditions.
TRANSACTIONS WITH RELATED PARTIES11.
FIXED ASSETS - Tangible10.
46,7767,710
19,89011,555,245
-1,8321,452
10,5936,289
31,618
Premium receivableCommission payableProfit receivable on certificate of depositInvestment in sharesPayable for administrative servicesPayable to retirment benefit fund(Payable) to / receivable from provident fundPrepaid rentSecurity DepositOther receivables
Period-end balances:
Un-audited31 March
2015
Audited31 Deccember
2014
96,68610,838-
11,485,8052,0002,051
(1,243)5,6536,289
36,241
Premium underwrittenPremium collectedClaims expenseCommission paidCommission expenseRental incomeRent expenseDonationPurchase of fixed assetDisposal of fixed assetInvestment in shares - net of provision for impairmentCharge for administrative servicesCharge in respect of gratuity fundCharge in respect of provident fundKey management personnel compensationProfit on certificate of deposit
Transactions
31 March2015
31 March2014
275,273266,27121,8362,117
506947
4,940100
-112
(69,440)2,0002,0082,354
20,782 -
232,440224,38531,5822,915
3951,1264,160-
15,5982,044
(2,257)-
1,6472,129
16,7187,273
Un-audited
(Rupees in thousand)
(Rupees in thousand)
19
for the First Quarter Ended March 31, 2015 (Un-audited)
IGI INSURANCE FIRST QUARTER REPORT 2015
There is no change in the basis of segmentation or the measurement basis of segment profit or loss sinceDecember 31, 2014. Class of business wise revenue and results have been disclosed in the condensedinterim statement of premiums and profit and loss account, respectively, prepared in accordance with therequirement of Insurance Ordinance, 2000 and the SEC (Insurance) Rules, 2002.
SEGMENT REPORTING12.
Segment wise assets and liabilities as of March 31, 2015 are as follow:
March 31, 2015 (Un-audited)
Fire andpropertydamage
(Rupees in thousand)
928,317
-
-
1,065,262
-
-
Marine,aviation and
transport
201,223
-
-
301,178
-
-
262,829
-
-
673,103
-
-
Motor Health
38,202
-
-
126,443
-
-
Miscellaneous
213,156
-
-
288,595
-
-
Total
1,643,727
12,976,413
14,620,140
2,454,581
661,268
3,115,849
Segment assets
Unallocated assets
Consolidated assets
Segment liabilities
Unallocated liabilities
Consolidated total liabilities
December 31, 2014 (Audited)
Fire andpropertydamage
(Rupees in thousand)
727,301
-
-
742,075
-
-
Marine,aviation and
transport
218,746
-
-
276,814
-
-
225,706
-
-
495,941
-
-
Motor Health
45,818
-
-
107,539
-
-
Miscellaneous
218,864
-
-
360,125
-
-
Total
1,436,435
13,053,655
14,490,090
1,982,494
928,450
2,910,944
Segment assets
Unallocated assets
Consolidated assets
Segment liabilities
Unallocated liabilities
Consolidated total liabilities
20
Notes to the Condensed Interim Financial Information
EARNINGS PER SHARE13.
Basic earnings per share
(Loss) / profit for the period
(Loss) / earnings per share
DATE OF AUTHORISATION FOR ISSUE14.
These unconsolidated condensed interim financial statements have been authorized for issue on 22April, 2015 by the Board of Directors of the Company.
(0.61)
Weighted average number of ordinary shares
Quarter ended March
2015 2014(Rupees in thousand)
(74,855)
122,689,532
0.16
19,252
122,689,532
(Rupees)
Principal Officerand Chief Executive
DirectorDirectorChairman
22
Directors’ Report to the Shareholders on Consolidated CondensedInterim Financial Information
For and on behalf of the Board
Syed Babar AliChairman
Karachi: April 22, 2015
The Directors of IGI Insurance take pleasure in presenting their review together with the consolidated
condensed interim financial information (un-audited) of IGI Insurance Limited and its subsidiary, IGI
Life Insurance Limited for the quarter and three months ended March 31, 2015.
The consolidated condensed interim financial information reflects Rs 1.44 (March 31, 2014: Rs 2.03)
earnings per share for the period under review.
We cherish the support and patronage of our business partners and all stakeholders and appreciate
the dedicated and sincere efforts of our employees.
CONSOLIDATED
Condensed InterimFinancial Informationfor the Quarter Ended
March 31, 2015
Consolidated Condensed Interim Balance Sheet
24
The annexed notes 1 to 14 form an integral part of these condensed interim consolidated financial statements.
March 31,2015
December 31,2014Note
(Rupees in thousand)Share capital and reserves
Authorized share capital[200,000,000 (December 31, 2014: 200,000,000)
Ordinary shares of Rs.10/- each]
Issued, subscribed and paid up share capitalUnappropriated profit Reserves
Underwriting provisions
Provision for outstanding claims [including IBNR]Provision for unearned premiumCommission income unearned
Creditors and accruals
Premium received in advanceAmounts due to other insurers / reinsurersExperience refund payableAccrued expensesSundry creditors
Borrowings
Short term finance - securedLong term finance - secured
Other LiabilitiesUnclaimed dividend
TOTAL LIABILITIES
Equity attributable to the equity holders of the parent
Non-controlling interest
Total Equity
Deferred liabilitiesDeferred taxation
2,000,000
1,226,8951,874,9308,582,316
11,684,141
850,726648,17172,750
1,571,647
41,375374,19641,749
197,938492,068
8,703
13,976,941
1,147,326
79,830675,000754,830
250,314
11,934,455
39,167
Balance of Statutory Funds 10,455,268
TOTAL EQUITY AND LIABILITIES
CONTINGENCIES AND COMMITMENTS 7
25,911,396
Principal Officerand Chief Executive
DirectorDirectorChairman
(Unaudited) (Audited)
26,237,372
2,000,000
1,226,8952,415,5598,214,247
11,856,701
772,024929,551108,617
1,810,192
55,329527,89850,607
164,638463,295
8,702
14,127,132
1,261,766
-550,000550,000
253,538
12,110,240
60,738
10,435,734
25
as at March 31, 2015 (Un-audited)
IGI INSURANCE FIRST QUARTER REPORT 2015
8
Note
Rupees in thousand
10
1,376408,906377,000787,283
136,103
22,424,377
124,380
505,287453,075190,305292,118
468,53655,989
257,90321,451
118,936
41,613164,68969,7043,292
279,298
26,237,372
23269292
2,363,599
Premiums due but unpaid - unsecuredAmounts due from other insurers / reinsurers - unsecuredAccrued income on investments and depositsReinsurance recoveries against outstanding claimsPrepayments: - prepaid reinsurance premium ceded - othersTaxation - payments less provisionExperience refund receivableSundry receivables
Cash and bank deposits
Cash and other equivalentsCurrent and other accountsDeposits maturing within 12 months
Investments
Investment property
Current assets - others
Fixed assets
TangibleFurniture, fixtures and office equipmentBuildingMotor vehiclesCapital work in progress
Intangibles
Computer softwares
Goodwill
TOTAL ASSETS
Loans secured against other assets- To employees- To agents
Loans secured against life insurance policies
5,069
116,971
Principal Officerand Chief Executive
DirectorDirectorChairman
506596,291315,000911,797
134,350
21,954,935
127,363
395,945525,344417,496336,040
309,85850,704
234,08123,31689,217
42,337166,54566,7822,003
277,667
25,911,396
92269361
2,382,001
5,951116,971
March 31,2015
31 December2014
(Unaudited) (Audited)
Consolidated Condensed Interim Profit and Loss Account for the First Quarter Ended March 31, 2015 (Un-audited)
26
The annexed notes 1 to 14 form an integral part of these condensed interim consolidated financial statements.
Revenue accountNet premium revenueNet claimsExpensesNet commissionNet investment income - Statutory FundOther income-netAdd: Policyholders' liabilities at the beginning of the periodLess: Policyholders' liabilities at the end of the period(Surplus) / deficit taken to statutory fund
Underwriting result
Investment income (Note 9)Rental incomeReturn on bank balancesOther incomeFinancial chargesGeneral and administrative expenses
Taxation
Profit after taxation
Share of profit of associate
Equity holders of the parentNon-controlling interest
Earnings per share - basic and diluted (Note 13)
Other comprehensive loss - not reclassifiable to profit and loss- Share of other comprehensive loss of associate
Total comprehensive income
Total comprehensive income attributable to:
25,854(17,835)
(7,067)1,986--
-
--
2,938
24,835(21,970)
(3,450)(825)--
-
--
(1,410)
144,939(71,588)(28,324)(16,264)
--
-
--
28,763
54,952(16,999)(11,651)
10,728--
-
--
37,030
25,731(3,218)
(35,474)30,076
--
-
--
17,115
Marine,aviation
andTransport
Health MiscellaneousMotor Fire andPropertyDamage
Rupees in thousand
14,772(19,848)
(4,753)(4,012)31,084
681
1,098,827
(1,114,028)(2,723)-
LifeParticipating
278,491(149,386)
(83,060)37,114
--
-
--
83,159
March 31,2015
4,569(14,226)
(331)-
1,911131
70,259
(62,514)201
-
PensionBusiness
Fund
924,041(922,222)(181,192)
(69,418)298,346
14,762
9,594,542
(9,609,726)35,30384,436
March 31,2014
Quarter ended
Aggregate Aggregate
Life Non-Participating
159,896(560,580)
(17,647)(24,633)170,575
913
4,253,665
(4,012,704)30,515-
InvestmentLinked
Business
207,533(78,546)(40,378)(55,306)
85,2333,529
3,936,955
(4,083,503)24,483-
Individual
76,271(23,243)(11,732)
(3,506)5,528
885
65,374
(101,558)(8,019)
-
Group
Accident and Health Business
3,213(1,104)
(743)(2,948)
1,10473
22,770
(21,085)(1,280)
-
Individual
181,476(93,065)(19,642)
(4,714)2,9118,550
146,692
(214,334)(7,874)
-
Group
NON-LIFE INSURANCE LIFE INSURANCE
175,785
(14,793)947
6,811193
(15,399)(31,900)(54,142)
172,5603,225
223,036
(46,414)
176,622
1.44
192,742
(837)
175,785
249,357
3,0201,1267,2674,824
(7,319)(41,663)(32,745)
249,357-
272,281
(22,924)
249,357
2.03
221,867
-
249,357
Principal Officerand Chief Executive
DirectorDirectorChairman
Profit before taxation
27
Consolidated Condensed Interim Statement of Changes in Equity for the First Quarter Ended March 31, 2015 (Un-audited)
IGI INSURANCE FIRST QUARTER REPORT 2015
10,693,037
249,357
-249,357
-
-
10,942,394
266,715
986,051
6,083(4,584)
1,499987,550
(94,900)
-(167,304)
11,934,455
176,622
(837)175,785
-
12,110,240
( R u p e e s i n t h o u s a n d )
Reserves
Issued,Subscribedand Paid-up
Share Capital
Premiumon Issueof Shares
OtherCapital
Reserves GeneralReserve
Unapprop-riatedProfits
Capital Reserves RevenueReserves
Total
Balance as at January 1, 2014 (audited)
Profit after taxation for the period ended March 31, 2014
Other comprehensive income for the periodTotal comprehensive income for the Quarter ended March 31, 2014
Transfer from general reserve to unappropriated profit
Transfer from general reserve to reserve for bonus shares
Balance as at March 31, 2014
Transactions with owners, recorded directly in equityNon-controlling interest acquired on acquisition of IGI Life Insurance Limited
Profit after taxation for the nine months ended December 31, 2014
Other comprehensive income for the period- Share of other comprehensive income of associate - net of tax- Re-measurement of post employment benefit obligations - net of tax
Total comprehensive income for the nine months ended December 31, 2014
Transactions with owners, recorded directly in equity
Capital contribution to statutory funds during the year
Bonus shares issued for the year ended December 31, 2013 -Re. 1 per shareFinal dividend for the year ended December 31, 2013 - Rs. 1.5 per share
Balance as at December 31, 2014
Profit after taxation for the period ended March 31, 2015
Other comprehensive loss for the periodTotal comprehensive income for the Quarter ended March 31, 2015
Transfer from general reserve to unappropriated profit
Balance as at March 31, 2015
Reservefor Bonus
Shares
EquityAttributable
to equityholders
of the parent
Non-controlling
Interest
1,115,359
-
--
-
-
1,115,359
-
-
--
--
-
111,536-
1,226,895
-
--
-
1,226,895
35,762
-
--
-
-
35,762
-
-
--
--
-
--
35,762
-
--
-
35,762
-
-
--
-
111,536
111,536
-
-
----
-
(111,536)-
-
-
--
-
-
33,267
-
--
-
-
33,267
-
-
----
-
--
33,267
-
--
-
33,267
8,792,127
-
--
(167,304)
(111,536)
8,513,287
-
-
----
-
--
8,513,287
-
--
(368,069)
8,145,218
716,522
249,357
-249,357
167,304
-
1,133,183
-
973,676
6,083(4,584)
1,499975,175
-
-(167,304)
1,941,054
173,397
(837)172,560
368,069
2,481,683
10,693,037
249,357
-249,357
-
-
10,942,394
-
973,676
6,083(4,584)
1,499975,175
(66,124)
-(167,304)
11,684,141
173,397
(837)172,560
-
11,856,701
-
-
--
-
-
-
266,715
12,375
---
12,375
(28,776)
--
250,314
3,225
-3,225
-
253,538
The annexed notes 1 to 14 form an integral part of these condensed interim consolidated financial statements.
Capitalcontributedto statutory
funds
-
-
--
-
-
-
-
-
----
(66,124)
--
(66,124)
-
--
-
(66,124)
Principal Officerand Chief Executive
DirectorDirectorChairman
Consolidated Condensed Interim Statement of Cash Flows
28
Quarter endedMarch 31,
2015March 31,
2014
(Rupees in thousands)
1,412,210(238,486)(448,009)(653,535)
139,852(119,439)
115,895208,488
(48,665)(292,329)
(1,638)69
(342,563)
485,7332,998
(643,763)405,139(15,857)(1,289)
2,335
-(20,905)
(125,000)
(134,075)
235,296
(145,905)
(44,684)
831,967
787,283
589,241(72,359)
(175,939) -
50,848(29,831)
85,900447,860
(6,886)(167,049)
- -
(173,935)
19,9713,915
(2,341) -
(27,943) -
8,046
(1,046)(14,456)
-
273,925
1,648
(15,502)
260,071
(75,509)
184,562
Operating activities
Premiums receivedReinsurance premiums paidClaims paidSurrenders paidReinsurance and other recoveries receivedCommissions paidCommissions receivedNet cash generated from underwriting activities
a) Underwriting activities
Income tax paidGeneral management expenses and operating payments - netLoans advancedLoan repayments receivedNet cash used in other operating activities
b) Other operating activities
Total cash (used in) / generated from operating activities
Investment activitiesProfit / return receivedDividends receivedPayments for investmentsProceeds from redemption of investmentsFixed capital expenditureCapital work in progressProceeds from disposal of fixed assets
Total cash generated from investing activities
Financing activities
Dividends paidFinancial charges paidLoan paid
Total cash used in financing activities
Net cash generated from all activities
Cash at the beginning of the period
Cash at the end of the period
Principal Officerand Chief Executive
DirectorDirectorChairman
29
as at March 31, 2015 (Un-audited)
IGI INSURANCE FIRST QUARTER REPORT 2015
Profit after taxation
Reconciliation to profit and loss account
Operating cash flows
Depreciation / amortisation
Financial charges
Gain on disposal of fixed assets
Increase in assets other than cash
Increase in liabilities
Provision for impairment in the value of available for sale investments - net
Cash comprises of cash in hand and at banks, stamps in hand, short term
placements with banks and short term running finance
Definition of cash
Cash for the purpose of statement of cash flows consists of:
Others
Surplus of Statutory funds
Dividend and other investment income
Share of profit of associate
Return on bank balances
176,622
(134,075)
(17,230)
(15,399)
193
203,925
(389,412)
(37,980)
249,357
273,925
(10,201)
(7,319)
4,823
124,937
(371,524)
(1,920)
35,303
323,163
192,742
15,392
-
7,502
221,867
7,267
The annexed notes 1 to 14 form an integral part of these condensed interim consolidated financial statements.
Principal Officerand Chief Executive
DirectorDirectorChairman
Quarter endedMarch 31,
2015March 31,
2014
(Rupees in thousands)
Cash and other equivalents
Current and other accounts
Deposits maturing within 12 months
Short term running finance
1,376
408,906
377,000
-
787,283
214
488
255,000
(71,140)
184,562
Consolidated Condensed Interim Statement of Premiums for the First Quarter Ended March 31, 2015 (Un-audited)
30
The annexed notes 1 to 14 form an integral part of these condensed interim consolidated financial statements.
Direct and facultative
Non-Life Insurance:
Business underwritten inside Pakistan
370,897121,810231,054
36,06773,886
833,714
276,46918,177
231,20640,39181,928
648,171
432,65231,553
316,19751,62397,526
929,551
214,714108,434146,063
24,83558,288
552,334
336,38259,492
4,306 -
34,521434,701
245,7439,767
227-
54,121309,858
393,14215,777
3,409 -
56,208468,536
188,98353,482
1,124 -
32,434276,023
25,73154,952
144,93924,83525,854
276,311
22,87955,535
128,39450,50421,180
278,491
Fire and Property Damage Marine, Aviation and TransportMotorHealth MiscellaneousTotal
Principal Officerand Chief Executive
DirectorDirectorChairman
Net Premium Revenue
PremiumsWritten
(Rupees in thousand)
Unearned PremiumsReserve
Opening ClosingPremiums
EarnedReinsurance
Ceded Opening Closing
Prepaid ReinsurancePremium Ceded Reinsurance
ExpenseMarch 31,
2015March 31,
2014
For the quarter ended March 31, 2015
Quarter ended
Life Insurance:
17,017213,621
87,927163,573
4,707182,469
4,569673,883
1,507,597
--------
648,171
--------
929,551
17,017213,621
87,927163,573
4,707182,469
4,569673,883
1,226,217
2,2456,088
11,6563,6771,494
993-
26,153
460,854
--------
309,858
--------
468,536
2,2456,088
11,6563,6771,494
993-
26,153
302,176
14,772207,533
76,271159,896
3,213181,476
4,569647,730
924,041
--------
278,491
Life ParticipatingLife Non-Participating (Individual)Life Non-Participating (Group)Investment Linked BusinessAccident and health (Individual)Accident and health (Group)Pension business fundTotal
Grand Total
Net Premium Revenue
PremiumsWritten
(Rupees in thousand)
Unearned PremiumsReserve
Opening ClosingPremiums
EarnedReinsurance
Ceded Opening Closing
Prepaid ReinsurancePremium Ceded Reinsurance
ExpenseMarch 31,
2015March 31,
2014
For the quarter ended March 31, 2015
Quarter ended
31
Consolidated Condensed Interim Statement of Claims for the First Quarter Ended March 31, 2015 (Un-audited)
IGI INSURANCE FIRST QUARTER REPORT 2015
The annexed notes 1 to 14 form an integral part of these condensed interim consolidated financial statements.
Business underwritten inside Pakistan
Principal Officerand Chief Executive
DirectorDirectorChairman
Life Insurance:
22,14478,54625,593
561,6384,104
93,06514,226
799,316
1,083,968
--------
640,512
--------
571,767
22,14478,54625,593
561,6384,104
93,06514,226
799,316
1,015,223
2,296-
2,3501,0583,000--
8,704
136,923
--------
336,040
--------
292,118
2,296-
2,3501,0583,000
--
8,704
93,001
19,84878,54623,243
560,5801,104
93,06514,226
790,612
922,222
--------
149,386
Life ParticipatingLife Non-Participating (Individual)Life Non-Participating (Group)Investment Linked BusinessAccident and health (Individual)Accident and health (Group)Pension business fundTotal
Grand Total
Net claims expense
Claims paid
(Rupees in thousand)
Outstandingclaims
Opening ClosingClaims
expense
Reinsuranceand otherrecoveriesreceived Opening Closing
Reinsuranceand other
recoveries inrespect of
outstanding claims
Reinsuranceand otherrecoveriesrevenue
March 31, 2015
March 31, 2014
For the quarter ended March 31, 2015
Quarter ended
Direct and facultative
Non-Life Insurance:
78,82755,79176,05720,96353,014
284,652
214,057158,427127,291
37,273103,464640,512
169,519138,380122,822
38,280102,766571,767
34,29035,74471,58821,97052,316
215,907
70,23823,833
--
34,148128,219
181,48661,51314,687
-78,354
336,040
142,31956,42514,687
-78,687
292,118
31,07118,745
--
34,48184,297
3,21816,99971,58821,97017,835
131,610
14,8065,328
80,45642,354
6,443149,386
Fire and Property Damage Marine, Aviation and TransportMotorHealth MiscellaneousTotal
Net claims expense
Claims paid
(Rupees in thousand)
Outstandingclaims
Opening ClosingClaims
expense
Reinsuranceand otherrecoveriesreceived Opening Closing
Reinsuranceand other
recoveries inrespect of
outstanding claims
Reinsuranceand otherrecoveriesrevenue
March 31, 2015
March 31, 2014
For the quarter ended March 31, 2015
Quarter ended
Consolidated Condensed Interim Statement of Expenses for the First Quarter Ended March 31, 2015 (Un-audited)
32
The annexed notes 1 to 14 form an integral part of these condensed interim consolidated financial statements.
* Commissions from reinsurers is arrived after taking impact of opening and closing unearned commission.
Business underwritten inside Pakistan
Principal Officerand Chief Executive
DirectorDirectorChairman
Life Insurance:
4,03455,577
5,84824,860
2,9484,728-
97,995
130,430
--------
-
--------
-
4,03455,577
5,84824,860
2,9484,728-
97,995
130,430
4,75340,37811,73217,647
74319,642
33195,226
181,193
8,78795,95517,58042,507
3,69124,370
331193,221
311,623
8,76595,68415,23842,280
3,69124,356
331190,345
250,610
--------
45,946
Life ParticipatingLife Non-Participating (Individual)Life Non-Participating (Group)Investment Linked BusinessAccident and health (Individual)Accident and health (Group)Pension business fundTotal
Grand Total
22271
2,342227-
14-
2,876
61,013
Net underwriting expense
Commissionspaid orpayable
(Rupees in thousand)
Deferredcommission
Opening Closing
Netcommission
expense
Othermanagement
expensesUnderwriting
expense
*Commissionsfrom
reinsurers March 31, 2015
March 31, 2014
For the quarter ended March 31, 2015
Quarter ended
Direct and facultative
Non-Life Insurance:
2,1337,277
16,264825
5,93632,435
------
------
2,1337,277
16,264825
5,93632,435
35,47411,65128,325
3,4507,067
85,967
37,60718,92844,589
4,27513,003
118,402
32,21018,005
--
7,92258,137
5,397923
44,5894,2755,081
60,265
(115)1,446
37,7895,1991,627
45,946
Fire and Property Damage Marine, Aviation and TransportMotorHealth MiscellaneousTotal
Net underwriting expense
Commissionspaid orpayable
(Rupees in thousand)
Deferredcommission
Opening Closing
Netcommission
expense
Othermanagement
expensesUnderwriting
expense
*Commissionsfrom
reinsurers March 31, 2015
March 31, 2014
For the quarter ended March 31, 2015
Quarter ended
Non-Life Insurance:
Income from non-trading investmentsReturn on government securitiesDividend income on available for sale investments(Provision) for diminution / reversal of impairment in value of investmentsLess: Investment related expenses
Life Insurance:
Shareholders' fundReturn on government securitiesRealised gain on sale of investments held as 'available for sale'
Statutory Funds
Life ParticipatingReturn on government securitiesUnrealised gain on revaluation of available-for-sale investmentsGain on sale of investments classified as available-for-sale
Life Non-Participating (Individual)Return on government securitiesUnrealised gain on revaluation of available-for-sale investmentsGain on sale of investments classified as available-for-sale
Life Non-Participating (Group)Return on government securitiesGain on sale of investments classified as available-for-sale
Investment LinkedReturn on government securitiesUnrealised gain on revaluation of available-for-sale investmentsGain on sale of investments classified as available-for-sale
Accident and Health (Individual)Return on government securitiesGain on sale of investments classified as available-for-sale
Accident and Health (Group)Return on government securities(Loss) on sale of investments classified as available-for-sale
Pension Business FundReturn on government securities
Net investment income
Net investment income-statutory fundsNet investment income-other
33
Consolidated Condensed Interim Statement of Investment Income for the First Quarter Ended March 31, 2015 (Un-audited)
IGI INSURANCE FIRST QUARTER REPORT 2015
The annexed notes 1 to 14 form an integral part of these condensed interim consolidated financial statements.
March 31, 2015
March 31, 2014
Quarter ended
(Rupees in thousands)
3,9462,998
(37,980)(1,630)
(32,666)
17,425448
17,873
37,568(7,346)
86231,084
102,857(19,967)
2,34385,233
5,386142
5,528
71,68993,6575,229
170,575
1,08321
1,104
2,85061
2,911
1,911
283,553
298,346(14,793)283,553
3,5873,915
(1,920)(2,562)
3,020
---
----
---
--
----
--
--
-
3,020
-3,0203,020
Principal Officerand Chief Executive
DirectorDirectorChairman
34
Notes to Consolidated Condensed Interim Financial Information
The "Group" consist of:
STATUS AND NATURE OF BUSINESS1.
1.1
(i) IGI Insurance Limited - Holding Company(ii) IGI Life Insurance Limited (formerly American Life Insurance Company (Pakistan) Limited)
- Subsidiary Company
IGI Insurance Limited ("Holding Company"), a Packages Group Company, was incorporated as a publiclimited company in 1953 under Companies Ordinance, 1984. The Company is listed on the Karachi,Lahore and Islamabad stock exchanges and is engaged in providing general insurance services in thespheres of Fire, Marine, Motor, Health and Miscellaneous. The registered office of the Company issituated at 7th Floor, The Forum, Suite No. 701-713, G-20, Block 9, Khayaban-e-Jami, Clifton, Karachi.
Holding Company1.2
In accordance with share purchase agreement the Holding Company acquired 34,838,687 shares of IGILife Insurance Limited [formerly American Life Insurance Company (Pakistan) Limited], the SubsidiaryCompany on April 10, 2014 resulting in the controlling interest of 69.68 % of the paid up capital of theSubsidiary.
In March and April 2013, two suits were filed by some of the employees of the Subsidiary Company seekingprotection for their employment from the consequences of the Share Purchase Agreement (SPA). Thestatus quo order passed by the High Court was modified on July 05, 2013 so that the transaction contemplatedby the SPA is allowed to be consummated. The final disposal of the legal proceedings is pending. As perthe advice of legal advisors of the Subsidiary Company, the chances of adverse financial implication onthe Subsidiary Company are remote.
IGI Life Insurance Limited [formerly American Life Insurance Company (Pakistan) Limited] ("SubsidiaryCompany") was incorporated in Pakistan on October 9, 1994 as a public limited company under theCompanies Ordinance, 1984. Its shares are quoted on the Karachi and Lahore Stock Exchanges. TheCompany commenced its operations on May 25, 1995 after registration with the Controller of Insuranceon April 30, 1995. The registered office of the Company is situated at Floor 13, Dolmen City, Block - 4,Scheme - 5, Clifton, Karachi.
The Company is engaged in life insurance, carrying on both participating and non-participating business.In accordance with the requirements of the Insurance Ordinance, 2000, the Company established aShareholders’ Fund and Separate Statutory Funds, in respect of each class of life insurance business. TheStatutory Funds established by the Company, in accordance with the advice of the Appointed Actuary areas follows:
Subsidiary Company1.3
35
for the First Quarter Ended March 31, 2015 (Un-audited)
IGI INSURANCE FIRST QUARTER REPORT 2015
- Life (participating)- Life (non-participating) – Individual- Life (non-participating) – Group- Accident & Health – Individual- Accident & Health – Group- Pension Business Fund- Investment Linked
BASIS OF PRESENTATION2.
These condensed interim consolidated financial statements are un-audited and are being submitted tothe shareholders in accordance with the listing regulations of Karachi, Lahore and Islamabad StockExchanges and section 245 of the Companies Ordinance, 1984. These condensed interim consolidatedfinancial statements of the Company have been prepared in accordance with the approved accountingstandards as applicable in Pakistan for interim financial reporting and in the format prescribed by theSecurities and Exchange Commission of Pakistan in its circular No. 7 of 2003.
These condensed interim consolidated financial statements do not include all the information and disclosuresrequired in the annual financial statements, and should be read in conjunction with the Company's annualfinancial statements for the year ended 31 December 2014.
ACCOUNTING POLICIES3.
The accounting policies and methods of computation adopted in the preparation of these condensedinterim consolidated interim financials statements are the same as those applied in the preparation ofthe annual financial statements for the year ended 31 December 2014.
SIGNIFICANT ESTIMATES AND JUDGEMENT4.
The preparation of the condensed interim consolidated financial statements requires management tomake judgements, estimates and assumptions that affect the application of accounting policies and thereported amounts of assets and liabilities, income and expenses. Actual results may differ from theseestimates.
In preparing these condensed interim consolidated financial statements, the significant judgements madeby management in applying the Company's accounting policies and the key sources of estimating uncertaintywere the same as those applied to the annual financial statements for the year ended 31 December 2014.
FINANCIAL AND INSURANCE RISK MANAGEMENT5.
The financial and insurance risk management objectives and policies are consistent with those disclosedin the annual financial statements of the Company for the year ended 31 December 2014.
PREMIUM DEFICIENCY RESERVE6.
No provision has been made in respect of premium deficiency reserve as the unearned premium reservefor each class of business as at period end is adequate to meet the expected future liability, afterreinsurance, from claims and other expenses, expected to be incurred after the balance sheet date inrespect of policies in force at the balance sheet date.
36
Notes to Consolidated Condensed Interim Financial Information
CONTINGENCIES - TAXATION7.
There is no change in the status of contingencies as disclosed in the annual financial statements of theCompany for the year ended 31 December 2014.
INVESTMENTS8.
The investments comprise of the following:
Investments in associatesHeld to maturity investmentsAvailable for saleAt fair value through profit or loss
(Un-audited)March, 31
2015
(Rupees in thousand)
(Audited)December, 31
2014Note
3,890,989124,109
17,298,910640,927
21,954,935
8.1
8.1
4,082,778124,215
17,600,567616,817
22,424,377
Market value of investments as at 31 March 2015 is Rs. 64,855 million (31 December 2014 : Rs. 63,100million).
8.1
INVESTMENT INCOME9.
During the current period, Board of Directors of certain companies, in which the Holding Company holdsinvestment, have recommended final dividend which is subject to approval of shareholders of suchcompanies in their respective Annual General Meetings scheduled to be held in the subsequent period.Once approved by the shareholders of these companies, the Company will receive dividend income ofRs. 596 million in the subsequent period.
FIXED ASSETS - Tangible10.
Opening book value
Additions during the period / year
Net book value of disposal during the period / year
Depreciation for the period / year
Closing book value
(Un-audited)March, 31
2015
(Rupees in thousand)
(Audited)December, 31
2014
277,667
17,142
(2,151)
(13,360)
279,298
216,936
122,890
(13,891)
(48,268)
277,667
37
for the First Quarter Ended March 31, 2015 (Un-audited)
IGI INSURANCE FIRST QUARTER REPORT 2015
TRANSACTIONS WITH RELATED PARTIES11.
Related parties comprises associated undertakings, other related companies, directors of the Companyand post employment benefit plans. The Company in the normal course of business carries out transactionswith variuos related parties. All transactions with related parties have been carried out on commercialterms and conditions.
Premium underwritten
Premium collected
Claims expense
Commission paid
Commission expense
Rental income
Rent expense
Donation
Purchase of fixed asset
Disposal of fixed asset
Investment in shares - net of provision for impairment
Charge in respect of gratuity fund
Charge in respect of provident fund
Key management personnel compensation
Profit on certificate of deposit
Transactions-Holding Company
Premium received
Claims paid
Brokerage charges
Charge for administrative services provided
Contribution made to provident fund
Contribution made to gratuity fund
Remuneration paid
Mark-up on loan
Premium received
Transactions - Subsidiary Company
(Un-audited)March, 31
2015
(Un-audited)March, 31
2014
(Rupees in thousands)
5,728
2,702
20
163
2,740
2,544
22,763
1
171
-
-
-
-
-
-
-
-
-
273,709
265,197
21,679
2,117
506
947
4,940
100
-
112
-
2,008
2,354
20,782
-
232,440
224,385
31,582
2,915
395
1,126
4,160
-
15,598
2,044
(2,257)
1,647
2,129
16,718
7,273
Premium receivable
Commission payable
Profit receivable on certificate of deposit
Investment in shares
Payable to retirment benefit fund
(Payable) to / receivable from provident fund
Prepaid rent
Security Deposit
Other receivables
Period-end balances - Holding Company
Payable to provident fund
Payable to gratuity fund
Loans receivable
Period-end balances - Subsidiary Company
There is no change in the basis of segmentation or the measurement basis of segment profit or loss sinceDecember 31, 2014. Class of business wise revenue and results have been disclosed in the condensedinterim statement of premiums and profit and loss account, respectively, prepared in accordance with therequirement of Insurance Ordinance, 2000 and the SEC (Insurance) Rules, 2002.
SEGMENT REPORTING12.
(Un-audited)March, 31
2015
(Audited)December, 31
2014
(Rupees in thousands)
96,180
10,838
-
11,197,222
2,051
(1,243)
5,653
6,289
33,009
46,776
7,710
19,890
11,005,317
1,832
1,452
10,593
6,289
30,917
965
873
23 -
38
Notes to Consolidated Condensed Interim Financial Information
-
-
39
for the First Quarter Ended March 31, 2015 (Un-audited)
IGI INSURANCE FIRST QUARTER REPORT 2015
Assets and liabilities, wherever possible, have been assigned to the following segments based on specific identificationor allocated on the basis of gross premium written by the segments.
Segment assetsUnallocated assetsConsolidated total assetsSegment liabilitiesUnallocated liabilitiesConsolidated total liabilities
145,673 -
217,531 -
71,110 -
106,187 -
455,540 -
680,258 -
240,157 -
358,627 -
731,252-
1,091,978-
Rupees in thousand
1,531,656 -
1,559,967 -
69,494 -
69,494 -
12,662,39813,574,97426,237,37213,399,369
727,76314,127,132
4,313,011 -
4,221,747 -
4,355,685 -
4,358,694 -
323,737 -
309,803 -
51,438 -
51,438 -
373,645 -
373,645 -
GENERAL INSURANCE LIFE INSURANCE
March 31, 2015 (Un-audited)
Segment assetsUnallocated assetsConsolidated total assetsSegment liabilitiesUnallocated liabilitiesConsolidated total liabilities
218,864-
236,325-
45,818-
97,910-
225,706-
451,642-
218,746-
245,823-
727,301-
679,014-
Rupees in thousand
1,549,404-
1,549,404-
75,122-
75,122-
12,367,71913,543,67725,911,39612,736,898
1,240,04313,976,941
4,508,235-
4,508,235-
4,262,397-
4,295,497-
258,032-
258,032-
53,238-
54,738-
224,856-
285,156-
GENERAL INSURANCE LIFE INSURANCE
December 31, 2014 (Audited)
EARNINGS PER SHARE13.
2015 2014
(Rupees in thousands)
Quarter ended March
Basic earnings per share
Profit for the period
Weighted average number of ordinary shares
176,622
122,689,532
249,357
122,689,532
(Rupees)1.44 2.03Earnings per share
DATE OF AUTHORIZATION FOR ISSUE14.
These condensed interim consolidated financial statements have been authorized for issue on 22 April, 2015by the Board of Directors of the Company.
Marine,aviation
andTransport
Health MiscellaneousMotor Fire andPropertyDamage
LifeParticipating
PensionBusiness
Fund
AggregateTotal
Life Non-Participating InvestmentLinked
BusinessIndividual Group
Accident and Health Business
Individual Group
Marine,aviation
andTransport
Health MiscellaneousMotor Fire andPropertyDamage
LifeParticipating
PensionBusiness
Fund
AggregateTotal
Life Non-Participating InvestmentLinked
BusinessIndividual Group
Accident and Health Business
Individual Group
40
Shareholder’s Information for the First Quarter Ended March 31, 2015 (Un-audited)
Shareholders Category No. ofShareholder
No. ofShares Held Percentage
Directors, Chief Executive Officer, spouse
Associated Companies, undertakings and related parties
17
2
38,354,683
33,876,059
31.26
27.61
6
12
3
1,731
-
85
2,529,032
3,474,387
60,755,519
22,924,685
-
13,973,111
2.06
2.83
49.52
18.69
-
11.39
Banks Development Financial Institutions,
Insurance Companies
Modarabas and Mutual Funds
Share holders holding 10%
General Public :
a. Local
b. Foreign
Others
Non Banking Financial Institutions. 10 7,557,578 6.16
and minor children
41
Pattern of Shareholding for the First Quarter Ended March 31, 2015 (Un-audited)
IGI INSURANCE FIRST QUARTER REPORT 2015
1,863
Number of Shareholders350399249416184
4526241817
66563136531421111313131111211111211322121111211112112211111111111111111111111111
Total Number of Shares Held13,523
118,570198,108
1,021,3231,370,972
557,153457,485544,657503,120549,835222,395256,473239,334319,139172,954
64,900203,264434,347411,017261,200
91,000400,000205,660108,984112,074118,468123,022411,086148,415457,610164,852512,922182,200191,261200,000215,000440,000224,571226,235230,008239,004243,000508,934255,600285,489895,179605,946644,865334,547735,952371,606379,966401,900420,000885,485488,678500,000514,230528,130
1,101,498563,269578,758
1,161,5431,174,457
660,000667,142752,065759,000773,000814,000861,000940,800988,240997,720
1,027,1401,058,7351,063,2071,167,9161,214,4751,226,8011,676,6771,719,1461,946,3642,214,8803,076,7284,586,3855,241,419
13,022,09320,853,96626,879,460
122,689,532
To100500
1,0005,000
10,00015,00020,00025,00030,00035,00040,00045,00050,00055,00060,00065,00070,00075,00085,00090,00095,000
100,000105,000110,000115,000120,000125,000140,000150,000155,000165,000175,000185,000195,000200,000215,000220,000225,000230,000235,000240,000245,000255,000260,000290,000300,000305,000325,000335,000370,000375,000380,000405,000420,000445,000490,000500,000515,000530,000555,000565,000580,000585,000590,000660,000670,000755,000760,000775,000815,000865,000945,000990,000
1,000,0001,030,0001,060,0001,065,0001,170,0001,215,0001,230,0001,680,0001,720,0001,950,0002,215,0003,080,0004,590,0005,245,000
13,025,00020,855,00026,880,000
From1
101501
1,0015,001
10,00115,00120,00125,00130,00135,00140,00145,00150,00155,00160,00165,00170,00180,00185,00190,00195,001
100,001105,001110,001115,001120,001135,001145,001150,001160,001170,001180,001190,001195,001210,001215,001220,001225,001230,001235,001240,001250,001255,001285,001295,001300,001320,001330,001365,001370,001375,001400,001415,001440,001485,001495,001510,001525,001550,001560,001575,001580,001585,001655,001665,001750,001755,001770,001810,001860,001940,001985,001995,001
1,025,0011,055,0011,060,0011,165,0011,210,0011,225,0011,675,0011,715,0011,945,0012,210,0013,075,0014,585,0015,240,001
13,020,00120,850,00126,875,001
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