half year report 2020 · 35,404 0.62 consolidated results profit before tax profit after tax...
TRANSCRIPT
HALF YEAR REPORTHALF YEAR REPORT
20202020HALF YEAR REPORT
2020
Inside SPI Insurance Company Limited
CONTENT
BUSINESS REVIEW
03Key Management
Personnel
04Banks
05Directors’ Review Report
to the Members (English)
10Independent
Auditors’ Review Report
Corporate Information02
FINANCIAL STATEMENTS (CONVENTIONAL)
07
FINANCIAL STATEMENTS (WINDOW TAKAFUL OPERATIONS)
Condensed Interim Statement
of Profit or Loss
28
29Condensed Interim Statement
of Comprehensive Income
31Condensed Interim Statement
of Cash Flows
Condensed Interim Statement
of Financial Position
27
Condensed Interim Statement
of Changes in Funds
30
Condensed Interim Statement
of Profit or Loss
12 13Condensed Interim Statement
of Comprehensive Income
Condensed Interim Statement
of Cash Flows
15
Condensed Interim Statement
of Financial Position
11
Condensed Interim Statement
of Changes in Equity
14Notes To The Condensed
Interim Financial Statements
16
26Independent
Auditors’ Review Report
32Notes To The Condensed
Interim Financial Statements
CORPORATE INFORMATION
Half Year Report 20202
Mr. Ihsan ul Haq Khan (Member)
Nominations Committee:Mr. Azizullah Memon (Chairman)Mian M. A. Shahid (Member)
Mr. Noshad Ahmed (Secretary)
Investment Committee:Mian M. A. Shahid (Chairman)Mr. Azizullah Memon (Member)
Mr. Naeem Tariq (Member/ Secretary)Mr. M. Saleem Sheikh (Member)
Audit Committee:Mr. M. Asghar (Chairman)Mr. M. Saleem Sheikh (Member)
Mian Mohsin Aslam (Secretary)Mr. Khurram Khan (Member)
Auditors:M/s RSM Avais Hyder Liaquat NaumanChartered Accountants
Tax Consultant:M/s M. Bilal & CompanyChartered Accountants
Legal Advisors:M/s Kilam LawM/s Mandviwala & Zafar
UIG House,6 - D, Upper Mall, Lahore.Phone # (042) 35776561-62-67-68,
35756563Fax # (042) 35776560E-mail: [email protected]: www.spiinsurance.com.pk
Suite # 204-A, Second Floor,Madina City Mall, Abdullah Haroon Road,
Phone # (021) 35221805Fax # (021) 35221806
Karachi.
ChairmanMr. Aziz Ullah Memon
Managing Director & Chief ExecutiveMian M. A. Shahid
Directors
Chief Financial Officer
Registered Office:
Head Office:
Mr. M. Asghar
Mr. Ihsan ul Haq Khan
Mr. Ihsan ul Haq Khan (Member)
Mr. Ihsan ul Haq Khan (Member)
Mr. Uzman Naveed Chaudhary
Mr. M. Saleem SheikhMr. Khurram Khan
Underwriting Committee:Mian M. A. Shahid (Chairman)
Mr. Imran Mehmood (Secretary)
Claim Settlement Committee:Mr. Uzman Naveed Chaudhry (Chairman)Mian M. A. Shahid (Member)Mr. Naeem Tariq (Member/Secretary)
Reinsurance & Co-insurance Committee:Mian M. A. Shahid (Chairman)
Mr. Faisal Akbar (Member/Secretary)
Ethics, Human Resource & Remuneration Committee:Mr. M. Saleem Sheikh (Chairman)Mian M. A. Shahid (Member)Mr. M. Asghar (Member)Mr. Shahid Malik (Secretary)
Mr. Naeem Tariq
Company Secretary Mr. Noshad Ahmed
Chief Internal AuditorMian Mohsin Aslam
Board of Directors
Committees
Risk Management & Compliance Committee:Mr. Uzman Naveed Chaudhry (Chairman)Mr. Azizullah Memon (Member)
Mr. Naeem Tariq (Member)Mr. Faisal Akbar (Secretary)
Mr. M. Asghar (Member)
3 SPI Insurance Company Limited
KEY MANAGEMENT PERSONNEL
Deputy Managing DirectorMr. Shaheryar Akbar Raja
AdvisorMaj. Gen. (R) Asif Duraiz Akhter
General Manager Re-Insurance
Mr. Faisal Akbar (FCA)
Manager Health Business
Mr. Ahmed Salman Mirza
General Manager Claims / MotorMr. Khalid Nazeer Bajwa
Chief Manager Underwriting
Mr. Imran Mehmood (ACII)
Chief Manager Accounts
Mr. Saleem Akhter (FCMA)
Manager Claims / Non Motor
Mr. Naveed ul Haq Nomani
Assistant General Manager I.T
Mr. Saquib Obaid ur Rehman
Assistant General Manager AdministrationMr. Shahid Malik
Manager TravelMr. Iqbal Hashmi
Shariah Advisor
Mufti Muhammad Umar Ashraf
Head of WTOMr. Faisal Rashid
Head of UnderwritingMr. Muzammil Bashir (ACII)
Manager Accounts
Mr. Ali Saeed
Mian M. A. Shahid
Conventional Business
Window Takaful Operations
Syed Waqar AzeemChief Operating Officer
Managing Director & Chief Executive Officer
Banks
4
Al-Barka Bank (Pakistan) Limited
Allied Bank Limited
Apna Micronance Bank Limited
Bank Al-Falah Limited
Bank Al-Habib Limited
Bank Islami Pakistan Limited
Faysal Bank Limited
Finca Micronance Bank Limted
First Women Bank Limited
Habib Bank Limited
JS Bank Limited
Meezan Bank Limited
National Bank of Pakistan
MCB Bank Limited
SILKBANK Limited
Sindh Bank Limited
Soneri Bank Limited
State Bank of Pakistan
The Karakuram Co-operative Bank Limited
Tameer Micronance Bank Limited
The Bank Of Punjab
United Bank Limited
Zarai Taraqiati Bank Limited
Half Year Report 2020
June 30,2020
June 30, 2019
(Rupees in thousands)
Premium WrittenNet Premium revenueNet ClaimsManagement ExpensesNet CommissionUnderwriting resultsInvestment and other IncomeGeneral & administration expensesProfit / (Loss) from WTOProfit / (Loss) before tax
301,569256,11063,224
153,47535,7721,630
10,3174,495
13,00020,452
353,606253,732
62,425135,765
38,67116,871
9,5644,186
20,62142,870
Conventional Insurance business
94,91054,84517,65210,39010,96825,57512,196
18712,383
52,27820,4346,171
25,01513,000
116,44848,57216,510
8,47610,85814,40520,038
14620,184
71,13723,475
2,7292977020,621
Participants’ Takaful fund
Contribution written Net Contribution revenue Net Claims Direct expenses Net Rebate on Re-Takaful Contribution deficiency Underwriting results Investment and other Income Surplus in PTF Operator’s fund Wakala fee Commission expensesInvestment and other IncomeGeneral & administration expensesProfit in OPF
Window Takaful Operations
20,45217,835
0.31
42,87035,404
0.62
Consolidated Results
Profit before TaxProfit after TaxE.P.S.
DIRECTORS' REVIEW REPORT
TO THE MEMBERS
5 SPI Insurance Company Limited
Dear Fellow Members!
On behalf of the Board of Directors, I am pleased to present the half yearly review report of the SPI Insurance Company Limited together with the un-audited Financial Statements along with Window Takaful Operations for the half year ending June 30, 2020.
Financial Highlights
Overall-performance of the company during the first half of 2020 has shown some stability against the current market situation on the conventional insurance business side, the premium written stood at Rs.301.569 million as on June 30, 2020 as compared to Rs.353.606 million on June 30, 2019 showing decrease of 14.72% while the net premium registered at Rs.256.110 million as against Rs.253.732 million in the preceding year showing an increase of 0.94%. The net claims expenses stood at Rs.63.224 million as against Rs.62.425 million for the same period ending June 30, 2019 showing an increase of 1.28%. The management expenses registered at Rs.153.475 million as against Rs.135.765 million as on June 30, 2019 showing increase of 13.04%. Net commission expenses posted at Rs.35.772 million as against Rs.38.671 million in last year. The underwriting results registered profit at Rs.1.630 million as against Rs.16.871 million in the year 2019 showing decrease of 90.34%. The investment and other income was Rs.10.317 million as against Rs.9.564 million in the year 2019 showing growth of 7.87%. Accordingly, profit before tax posted at Rs. 20.452 million as compared to profit of Rs.42.870 million earned by Company for the same period last year as a result the earning per share remained Rs.0.31 as compared to Rs.0.62 in the year 2019.
The written contribution under Window Takaful Operations for the period ended June 30, 2020 was Rs.94.910 million as against Rs.116.448 million in the preceding year showing decrease of 18.50% while net contribution revenue was Rs. 54.845 million as compared to Rs.48.572 million in last year. Wakala fee registered at Rs.52.278 million as against Rs.71.137 million in the preceding year showing decrease of 26.51%. The net claims expenses stood at Rs.17.652 million as against Rs.16.510 million on June 30, 2019 showing an increase of 6.92%. Net commission expenses posted at Rs.20.434 million as against Rs.23.475 million in last year in operators fund. General and administration expenses stood at Rs.25.015 million as against Rs.29.770 million in the year 2019 showing decrease of 15.97% in operator's fund. Underwriting results registered at Rs.12.196 million as against Rs.20.038 million profit showing decrease of 39.14% as compared to last year in the Participants’ Takaful fund. Profit arising from operators fund is Rs.13.00 million as against Rs.20.621 million in the year 2019. Surplus arising from the Participants’ Takaful fund was Rs.12.383 million as against Rs.20.184 million profits in the year 2019. Marginal increase / (decrease) is shown in operating results during the half year ended June 30, 2020.
6
For and on behalf of the Board of Directors
Mian M. A. Shahid Azizullah MemonDirector & Chief Executive Chairman Lahore: August 28, 2020
Credit Rating
The Company is rated single “A” with (stable outlook) by Pakistan Credit Rating Agency Limited (PACRA).
ISO 9001:2015 Certification
Due to overall performance during the year 2019 ISOQAR Limited has approved ISO 9001:2015 in compliance with their requirement and has issued the said certificate of registration, which is valid till March 10, 2022.
Capitalization of accumulated Profits
Company distributed bonus shares among the existing shareholders during the first half of 2020, B-4 @ 15% for rupees 75 million on May 05, 2020.
Future Outlook In view of the business trend during the one year period from 1st July, 2019 till 30th June, 2020 the economic activity during current half year remained sluggish due to impact of COVID-19, however few segments have shown some stability. The Management has to strive hard for acceleration of business during the remaining period of the year.
Appreciation and Acknowledgement
We would like to express our sincere gratitude to The Securities and Exchange Commission of Pakistan, State Bank of Pakistan, our Reinsurers and Bankers for their continued guidance and assistance. We would also like to take this opportunity to extend our thanks to valued customers and the shareholders for reposing their confidence. We also appreciate the efforts of the management and employees for their hard work and dedication towards the growth of the Company.
DIRECTORS' REVIEW REPORT
TO THE MEMBERS
Half Year Report 2020
301,569
256,110
63,224
153,475
35,772
1,630
10,317
4,495
13,000
20,452
94,910
54,845
17,652
10,390
10,968
25,575
12,196
187
12,383
52,278
20,434
6,171
25,015
13,000
20,452
17,835
0.31
353,606
253,732
62,425
135,765
38,671
16,871
9,564
4,186
20,621
42,870
116,448
48,572
16,510
8,476
10,858
14,405
20,038
146
20,184
71,137
23,475
2,729
29,770
20,621
42,870
35,404
0.62
7 SPI Insurance Company Limited
Half Year Report 20208 Half Year Report 2020
FINANCIALSTATEMENTS
For the half year ended June 30, 2020
INDEPENDENT AUDITORS' REVIEW REPORT
To the Members of SPI Insurance Company Limited Report on review of Condensed Interim Financial Statements
Introduction
We have reviewed the accompanying condensed interim statement of financial position of SPI Insurance Company Limited as at June 30, 2020 and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, condensed interim statement of cash flows and notes to the condensed interim financial statements for the six-months period then ended (here-in-after referred to as the “condensed interim financial statements”). Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim financial statements based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of condensed interim financial 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.
Emphasis of Matter
We draw attention to Note 2.4 of the financial statements, which states that in order to comply with the requirements of General Takaful Accounting Regulations, 2019, the Company has changed its accounting policy related to recognition of wakala fee in its Window Takaful Operations. The change in accounting policy and its impact is discussed in the said note. Our opinion is not modified in respect of this matter.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed 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.
Other Matter
The figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the three-months period ended June 30, 2020 and 2019 have not been reviewed, as we are required to review only the cumulative figures for the six-months period then ended.
The engagement partner on the review resulting in this independent auditors' review report is Inam ul Haque.
RSM AVAIS HYDER LIAQUAT NAUMAN CHARTERED ACCOUNTANTSPlace: LahoreDate: August 28, 2020
10 Half Year Report 2020
3
4
2.4
567
6
78
2.4
9
ASSETS
Property and equipmentIntangible assetsInvestments In equity securities In government securities In term depositsTotal assets in Window Takaful Operations - Operator's FundLoans and other receivablesInsurance / Reinsurance receivablesReinsurance recoveries against outstanding claimsDeferred commission expenseDeferred tax assetPrepaymentsCash and bank balancesTotal Assets
EQUITY AND LIABILITIESCAPITAL AND RESERVESOrdinary Share CapitalCapital reserve Fair value reserveRevenue reserve Un-appropriated profit / Accumulated (loss)Total Equity
LIABILITIES
Underwriting Provisions Outstanding claims (including IBNR) Premium deficiency reserves Unearned reinsurance commission Unearned premium reservesRetirement benefit obligationsDeferred tax liabilityBorrowingsInsurance / Reinsurance payablesOther creditors and accrualsTotal liabilities in Window Takaful Operations - Operator's FundProvision for tax - Income taxTotal LiabilitiesTotal Equity and LiabilitiesContingencies and Commitments
98,714,636 172,908
152,778,594 106,898,426 69,930,000 114,296,243 133,959,065 415,067,737 165,221,394 26,228,510 -
85,965,882 34,685,312 1,403,918,707
575,000,000
86,906,219
6,531,200 668,437,419
272,820,873 2,009,718 13,683,640 188,870,190 8,654,906 2,774,582 19,645,327 74,355,873 64,684,760 82,626,369 5,355,050 735,481,288 1,403,918,707 -
102,680,650 192,120
205,835,025 118,684,650 69,430,000 127,674,024 145,125,662 411,759,189 79,196,657 29,167,009
- 77,374,815 32,113,521 1,399,233,322
500,000,000
131,991,655
66,847,911 698,839,566
176,934,310-
12,527,628233,163,578
8,654,90612,439,32721,483,89464,181,04661,970,656
105,852,1963,186,215
700,393,7561,399,233,322
-
108,654,770240,149
50,168,070164,214,43121,230,000
139,466,793171,307,298343,798,505 80,064,20228,800,67919,030,89469,367,80627,489,053
1,223,832,650
500,000,000
(382,655)
(2,705,592)496,911,753
190,054,492-
10,545,652220,918,91110,364,906
-21,558,13380,171,58742,428,793
120,697,01230,181,411
726,920,8971,223,832,650
- The annexed notes 1 to 13 form an integral part of these condensed interim nancial statements.
(Un-audited)June 30,
2020Rupees
Note
(Audited)December 31,
2019
(Audited)December 31,
2018Rupees Rupees..............Restated ..............
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED) as at June 30, 2020
11
Chief Executive Officer DirectorDirectorChairman
SPI Insurance Company Limited
2020 2019 2020 2019
Rupees Rupees Rupees Rupees....Restated....
Net insurance premium 8 99,657,269 134,061,926 256,110,901 253,732,777
Net insurance claims 6 1,363,031
(28,289,446)
(63,224,758)
(62,424,945)
Premium Deficiency (2,009,718)
-
(2,009,718)
-
Net commission expenses 7 (26,494,480)
(23,853,712)
(35,771,995)
(38,671,153)
Insurance claim expenses (27,141,167)
(52,143,158)
(101,006,471)
(101,096,098)
Management expenses (78,060,627)
(71,054,031)
(153,474,469)
(135,765,510)
Underwriting results (5,544,525)
10,864,737
1,629,961
16,871,169
Investment income 3,898,752
3,951,662
7,589,996
8,288,688
Other income 2,636,724
1,142,857
2,726,917
1,275,932
Other expenses (1,516,996)
(1,439,786)
(2,793,472)
(3,065,273)
Result of operating activities (526,045) 14,519,470 9,153,402 23,370,516
Finance costs on lease liabilities (890,581)
(872,235)
(1,701,154)
(1,120,876)
Profit from Window Takaful Operator's Fund 2.4 15,285,304
1,111,204
12,999,644
20,620,509
Profit for the period before tax 13,868,678 14,758,439 20,451,892 42,870,149
Provision for taxation (5,244,994) (6,447,807) (2,617,004) (7,465,925)
Profit for the period 8,623,684
8,310,632
17,834,888
35,404,224
Earnings per share - basic and diluted 0.15
0.14
0.31
0.62
The annexed notes 1 to 13 form an integral part of these condensed interim nancial statements.
Three-months periodended June 30,
Six-months period ended June 30,Note
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)
12
Chief Executive Officer DirectorDirectorChairman
for the six-months period ended June 30, 2020
Half Year Report 2020
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
13
Chief Executive Officer DirectorDirectorChairman
2020 2020
Rupees Rupees
Profit for the period 8,623,684 17,834,888
Other comprehensive (loss) / income
Other comprehensive (loss) / income (45,047,523)
(48,237,034)
Total comprehensive (loss) / income for the period (36,423,839)
(30,402,146)
The annexed notes 1 to 13 form an integral part of these condensed interim nancial statements.
Three-months periodended June 30,
Six-months period ended June 30,
(43,477,048)
(45,085,436)
(3,151,598)
Unrealized (loss) /gain on available -for-sale investments
Items that may be reclassified subsequently to profit or loss:
2019 2019
Rupees Rupees
8,310,632 35,404,224
(1,607,536) 34,192,607
6,703,096 69,596,831
-
(1,607,536)
34,625,412
(432,805)Other comprehensive (loss) from Window Takaful Operations
(1,570,475)
for the six-months period ended June 30, 2020
....Restated....
SPI Insurance Company Limited
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)
14
Chief Executive Officer DirectorDirectorChairman
Capital reserve Revenue reserve
Fair value reserveUn-appropriated
profit
Balance as at January 01, 2019 as previously reported 500,000,000 (382,655) 42,841,213 542,458,558
Effect of change in accounting policy (Refer Note 2.4) -
-
(45,546,805)
(45,546,805)
Balance as at January 01, 2019 as restated 500,000,000
(382,655)
(2,705,592)
496,911,753
Total comprehensive income / (loss) for the periodProfit for the period -
-
35,404,224
35,404,224Other comprehensive (loss) / income - 34,625,412 (432,805) 34,192,607
-
34,625,412
34,971,419
69,596,831
Balance as at June 30, 2019 as restated 500,000,000
34,242,757
32,265,827
566,508,584
Balance as at January 01, 2020 as restated 500,000,000
131,991,655
66,847,910
698,839,565
Total comprehensive income for the periodProfit for the period -
-
-
17,834,888
17,834,888
Other comprehensive (loss) -
(45,085,436)
(3,151,598)
(48,237,034)
Transaction with ownersIssuance of Bonus Shares 75,000,000 (75,000,000) -
- (45,085,436) 14,683,290 (30,402,146)
Balance as at June 30, 2020 575,000,000
86,906,219
6,531,200
668,437,419
The annexed notes 1 to 13 form an integral part of these condensed interim nancial statements.
Total
----------------------------------------- Rupees -------------------------------------------
Issued, subscribed and paid up capital
D e s c r i p t i o n
for the six-months period ended June 30, 2020
Half Year Report 2020
CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)
15
Chief Executive Officer DirectorDirectorChairman
2020 2019Rupees Rupees
Operating cash flows:a) Underwriting activities:
Insurance premium received 308,346,096 364,371,130Reinsurance premium paid (93,156,300)
(65,441,468)
Claims paid (60,295,317)
(62,698,327)
Reinsurance and other recoveries received (1,584,083)
(41,081,260)
Commission paid (48,906,870)
(53,600,425)
Commission received 15,952,544
10,255,366
Management expenses paid (144,288,748)
(133,935,462)
Net cash flow from underwriting activities (23,932,678)
17,869,554
b) Other operating activities:
Income tax paid (2,154,449)
(1,499,988)General expenses paid (2,793,473)
(3,065,273)Other operating receipts/(payments) 12,553,793
(1,239,834)Loan to employees and agents 154,422
(720,760)
Net cash flow from other operating activities 7,760,293
(6,525,855)
Net cash flow from all operating activities (16,172,385) 11,343,699
Investment activities:
Profit/ return received 9,846,011 8,914,471 Payments for investments 19,257,219 48,830,675 Fixed capital expenditure (4,615,487) (1,584,378)Proceeds from disposal of fixed assets 8,000
1,753,950
Net cash flow from investing activities 24,495,743
57,914,718
Financing activities:
Payments on finance leases (5,751,567)
(5,229,784)
Net cash flow from financing activities (5,751,567) (5,229,784)
Net cash inflow from all activities 2,571,791
64,028,633
Cash and cash equivalents at the beginning of the period 32,113,521
27,489,053
Cash and cash equivalents at the end of the period 34,685,312
91,517,686
Reconciliation of Profit and Loss Account
Operating cash flows (16,172,385)
11,343,699
Depreciation / amortization (8,596,303)
(9,124,997)Provision for doubtful debts 1,012,983
7,464,457 Gain on disposal of fixed assets 3,590
1,172,331 (Decrease) in assets other than cash (83,819,256)
(69,462,835)Decrease in liabilities 106,411,449 98,143,482Investment and other income 10,313,323 8,392,289Lease charges (1,701,154) (1,120,876)Gain / (loss) on takaful operations 12,999,644 (3,937,401)Provision for taxation (2,617,004) (7,465,925)
Profit for the period 17,834,888 35,404,224
The annexed notes 1 to 13 form an integral part of these condensed interim nancial statements.
Six months period ended June 30,
for the six-months period ended June 30, 2020
SPI Insurance Company Limited
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)
LEGAL STATUS AND NATURE OF BUSINESSSPI Insurance Company Limited (the Company) is an unquoted public limited company incorporated in Islamabad, Pakistan on February 15, 2005 under the repealed Companies Ordinance, 1984 (now Companies Act, 2017). The Company is engaged in non-life insurance business mainly comprising of fire, marine, motor, health and miscellaneous. The Company commenced its commercial operations on April 13, 2005. The registered office of the Company is situated at suite # 204-A, Second Floor, Madina City Mall, Abdullah Haroon Road, Karachi, in the province of Sindh and principal office of the Company is situated at UIG House 6-D, 1st Floor, Upper Mall, Lahore, in the province of Punjab, Pakistan.The Company has been allowed to work as Window Takaful Operator through License No. 3 on November 20, 2014 by Securities and Exchange Commission of Pakistan under Window Takaful Rules, 2012 to carry on Islamic General Insurance in Pakistan. It has not transacted any business outside Pakistan.
BASIS OF PREPARATION Statement of compliance
These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of: -International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the
International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and
-Provisions of and directives issued under the Companies Act, 2017, Insurance Ordinance, 2000, Insurance Rules 2017, Takaful Rules, 2012 and Insurance Accounting Regulations, 2019.
Where the provisions of and directives issued under the Companies Act, 2017, the Insurance Ordinance, 2000, the Insurance Rules 2017, Takaful Rules, 2012 and the Insurance Accounting Regulations, 2019 (referred to as relevant local laws) differ with the requirements of IAS 34, the provisions of and directives issued under the relevant local laws have been followed.
Total assets, total liabilities, profit, comprehensive income of the Window Takaful Operations of the Company referred to as the Operator's Fund has been presented in these condensed interim financial statements in accordance with the requirements of Circular 25 of 2015 dated 9 July, 2015.
The disclosures made in these condensed interim financial statements have, however, been limited based on the requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim financial statements do not include all the information and disclosures required in a full set of financial statements and should be read in conjunction with the audited annual financial statements of the Company for the year ended December 31, 2019.
These condensed interim financial statements have been presented in Pakistani Rupees, which is also the functional and presentation currency of the Company.
Estimates, judgements and risk management policies
The preparation of these condensed interim financial statements in conformity with approved accounting standards, as applicable in Pakistan, requires the management to make judgments, estimates and assumptions that affect application of accounting policies and reported amounts of assets, liabilities, income and expenses.
2
1
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.2.1
2.2
16
for the six-months period ended June 30, 2020
Half Year Report 2020
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
Significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on amounts recognized in these condensed interim financial statements are the same as those disclosed in the audited annual financial statements of the Company for the year ended December 31, 2019.
Risk management policies and procedures are consistent with those disclosed in the audited annual financial statements of the Company for the year ended December 31, 2019.
Basis of measurementThese condensed interim financial statements have been prepared under the historical cost convention except certain financial instruments that are carried at fair value. Change in Accounting PolicyAdoption of new General Takaful Accounting Regulations, 2019SECP has issued the General Takaful Accounting Regulations, 2019 which includes format for the preparation and presentation of the financial statements of the Window Takaful Operations of the Company. The new Accounting Regulations are effective for the accounting periods beginning on or after 01 January, 2020. In order to comply with the requirements of these regulations, the Company has changed its accounting policy related to recognition of wakala fee in Window Takaful Operations which was being recognized upfront on the issue of Takaful policy. The wakala fee is now recognized over the period of Takaful. Change in accounting policy has been applied retrospectively in the condensed interim financial statements of Window Takaful Operations of the company in accordance with the requirements of IAS-8 Accounting Policy, Changes in Accounting Estimates and Errors. Resultant impact of change in accounting policy on the condensed interim financial statements is as under;
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)
2.2.2
2.3
2.4
17
As previously stated As restated As previously
stated As restated
Statement of financial position
Total assets in Window Takaful - Operator's Fund 127,674,024 127,674,024 139,466,793 139,466,793
Un-appropriated profit / Accumulated (loss) 102,469,544 66,847,911 42,841,213 (2,705,592)
Total liabilities in Window Takaful - Operator's Fund 70,230,563 105,852,196 75,150,207 120,697,012
As previously stated As restated As previously
stated As restated
Statement of Profit or Loss
Profit / (loss) from Window Takaful Operator's Fund (9,591,215) 20,620,509 (5,316,066) (50,862,871)
--------------------Rupees--------------------
December 31, 2019 December 31, 2018
December 31, 2018
--------------------Rupees--------------------
December 31, 2019
for the six-months period ended June 30, 2020
SPI Insurance Company Limited
Significant accounting PoliciesThe accounting policies and methods of computation followed in the preparation of these condensed interim financial statements are the same as those applied in the preparation of the audited annual financial statements of the Company for the year ended December 31, 2019 except change in accounting policy discussed in Note 2.4.
Application of new and revised international financial reporting standardsStandards, amendments to published approved accounting standards and interpretations becoming effective in current period:There are certain new standards, amendments and International Financial Reporting Interpretations Committee (IFRIC) interpretations that became effective during the period and are mandatory for accounting periods of the Company beginning on or after January 01, 2020 but are considered not to be relevant or not to have any significant effect on the Company's operations. The new standards, amendments and IFRIC interpretations that are relevant to the operations of the Company are disclosed in the audited annual financial statements of the Company for the year ended December 31, 2019.
Standards, amendments to published approved accounting standards and interpretations becoming effective in future periods:There are other new standards, amendments and IFRIC interpretations that are mandatory for accounting periods of the Company beginning on or after January 01, 2020 but are considered not to be relevant or not to have any significant effect on the Company's operations. The new standards, amendments and IFRIC interpretations that are relevant to the operations of the Company are disclosed in the audited annual financial statements of the Company for the year ended December 31, 2019.
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)
2.6.2
2.6.1
2.5
2.6
18
Operating fixed assets:
Owned assets
Leased assets
3.1 Additions and deletions in property and equipmentFollowing are the major additions and deletions in fixed assets:
Tangible owned assets
Furniture and fixtures
Office equipment
Computer equipment
Motor vehicles
Leased assets
Leased vehicles
PROPERTY AND EQUIPMENT
June 30, December 31,2020 2019
(Unaudited) (Audited)
59,946,951 64,788,393
38,767,685 37,892,257
98,714,636
102,680,650
2020 2019 2020 2019
33,250
553,735
-
-
124,299
356,576
-
3,950
312,438
278,817
-
-
232,500
6,939,300
4,410
577,669
702,487
8,128,428
4,410
581,619
3,913,000
-
-
3,784,762
Additions (at cost) Deletions (at net book value)
Rupees
Six-months period ended June 30,
Rupees
Six-months period ended June 30,
Rupees
for the six-months period ended June 30, 2020
3
Half Year Report 2020
6
2020 2019 2020 2019
Rupees Rupees Rupees Rupees
Claims Paid 19,737,918
26,183,671
60,295,317
62,698,327
Add: Outstanding claims including IBNR - Closing 272,820,873
218,895,131
272,820,873
218,895,131
Less: Outstanding claims including IBNR - Opening (196,289,462)
(196,069,339)
(176,934,310)
(190,054,492)
Claims expense 96,269,329
49,009,463
156,181,880
91,538,966
Less: Reinsurance and other recoveries received 3,395,791
(2,837,906)
6,932,385
7,967,789
165,221,394 101,210,434 165,221,394 101,210,434
(70,984,825)
(77,652,511)
(79,196,657)
(80,064,202)
Reinsurance and other recoveries revenue 97,632,360
20,720,017
92,957,122
29,114,021
(1,363,031)
28,289,446
63,224,758
62,424,945
Less: Reinsurance and other recoveries in respect of outstanding claims - Opening
NET INSURANCE CLAIMS
Add: Reinsurance and other recoveries in respect of outstanding claims - Closing
Three-months period ended June 30,
Six-months period ended June 30,
19 SPI Insurance Company Limited
4
Shares Cost Fair Value Shares Cost Fair Value
Number NumberRelated party
Listed shares
Apna Microfinance Bank Limited 8,462,237
50,011,000
152,658,755
8,462,237
50,011,000
205,716,981
Others
Listed shares - (Note 4.1)
Saudi Pak Leasing Company Limited 16,065
226,625
9,479
16,065
226,625
15,744
Kohinoor Industries Limited 31,000
313,100
110,360
31,000
313,100
102,300
Unlisted shares - (Note 4.2)
Callmate Telips Telecom Limited 32,000
-
-
32,000
-
-
8,541,302
50,550,725
152,778,594
8,541,302
50,550,725
205,835,025
4.1
4.2 Trading in these shares has been suspended.
5
June 30, December 31,2020 2019
(Unaudited) (Audited)
151,774,136 158,550,896
(11,599,639) (14,299,866)
140,174,497 144,251,030
312,987,670 304,471,202
(38,094,430) (36,963,043)
274,893,240 267,508,159
415,067,737 411,759,189
Rupees
Less provision for impairment of due from other insurers / reinsurers
INVESTMENT IN EQUITY SECURITIES - AVAILABLE FOR SALE
Due from insurance contract holders
Due from other Insurers / reinsurers
Less provision for impairment of receivables from insurance contract holders
June 30, 2020 December 31, 2019
INSURANCE / REINSURANCE RECEIVABLES
Rupees Rupees
(Un-audited) (Audited)
These shares are deposited into CDC account and blocked on the instructions of Securities and ExchangeCommission of Pakistan (SECP) in accordance with Circular No. 9 of 2006 issued by the SECP.
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)for the six-months period ended June 30, 2020
7
2020 2019 2020 2019
Rupees Rupees Rupees Rupees
Commission paid or payable 25,428,610
35,349,137
47,630,028
54,445,834
Add: Deferred commission expense - Opening 33,980,684
27,777,586
29,167,009
28,800,679
Less: Deferred commission expense - Closing (26,228,510)
(34,111,698)
(26,228,510)
(34,111,698) Net Commission 33,180,784 29,015,025 50,568,527 49,134,815
Less: Commission received or recoverable 10,334,716 6,413,684 15,952,544 10,255,366
Add: Unearned re-insurance commission - Opening 10,035,228 9,084,985 12,527,628 10,545,652
Less: Unearned re-insurance commission - Closing (13,683,640) (10,337,356) (13,683,640) (10,337,356) Commission from reinsurers 6,686,304 5,161,313 14,796,532 10,463,662
26,494,480 23,853,712 35,771,995 38,671,153
8
2020 2019 2020 2019
Rupees Rupees Rupees Rupees
Written Gross Premium 157,444,561
219,614,343
301,569,336
353,606,068
Add: Unearned premium reserve - Opening 200,256,755 204,964,792 233,163,578 220,918,911
Less: Unearned premium reserve - Closing (188,870,190) (249,499,712) (188,870,190) (249,499,712)
Premium earned 168,831,126 175,079,423 345,862,724 325,025,267
Less: Reinsurance premium ceded 60,750,178 39,683,321 96,583,608 68,722,858
Add: Prepaid reinsurance premium - Opening 89,783,797 66,545,358 74,528,333 67,780,814
Less: Prepaid reinsurance premium - Closing (81,360,118)
(65,211,182)
(81,360,118)
(65,211,182)
Reinsurance expense 69,173,857 41,017,497 89,751,823 71,292,490 99,657,269 134,061,926 256,110,901 253,732,777
9 CONTINGENCIES AND COMMITMENTS
Six-months period ended June 30,
Six-months period ended June 30,
NET INSURANCE PREMIUM
There is no significant change in contingencies and commitments reported in audited annual financial statements for the year ended December 31, 2019.
NET COMMISSION EXPENSES
Three-months period ended June 30,
Three-months period ended June 30,
20
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)for the six-months period ended June 30, 2020
Half Year Report 2020
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)
21 SPI Insurance Company Limited
Premium Deficiency
Net insurance premiumCommission incomeNet underwriting income
Insurance claims
Net claims
Commission expense
Management expenses
Underwriting results
Net investment income
Other income
Other expenses
Finance cost
Profit before tax
Segment assets
Unallocated assets
Segment assets - Operator's Fund
Segment liabilities
Unallocated liabilities
Insurance premium ceded to reinsurers
Net insurance claims and expenses
Profit from Window Takaful Operator's Fund
Unallocated assets - Operator's Fund
Unallocated liabilities - Operator's FundSegment liabilities - Operator's Fund
Insurance claims recovered from reinsurers
10 SEGMENT INFORMATION
Gross written premium 83,330,527 43,759,659 102,459,655 6,114,660 65,904,835
(2,009,718) - - - - (2,009,718)
(37,200,905) (16,144,117) (20,699,212) (428,181) (15,279,408) (89,751,823)
60,721,606 27,324,931 94,153,321 7,177,275 64,724,050 254,101,1834,917,705 1,918,353 4,196,645 3,763,829 14,796,532
65,639,311 29,243,284 98,349,966 7,177,275 68,487,879 268,897,715
(118,246,432) (1,855,938) (17,522,530) (4,275,899) (14,281,081) (156,181,880)
93,940,378 199,420 (2,393,538) - 1,210,862 92,957,122
(24,306,054) (1,656,518)
(19,916,068)
(4,275,899)
(13,070,219)
(63,224,758)
(18,287,381) (8,052,673)
(14,572,552)
(890,539)
(8,765,382)
(50,568,527)
(42,408,517) (22,270,137)
(52,143,701)
(3,111,869)
(33,540,245)
(153,474,469)
(85,001,952) (31,979,328)
(86,632,321)
(8,278,307)
(55,375,846)
(267,267,754)
(19,362,641) (2,736,044)
11,717,645
(1,101,032)
13,112,033
1,629,961
7,589,996
2,726,917
(2,793,473)
(1,701,154)
12,999,644
20,451,892
278,835,508 65,390,152 171,466,112 9,052,252 163,133,734 687,877,758
- - - - - 601,744,706
278,835,508 65,390,152
171,466,112
9,052,252
163,133,734
1,289,622,464
-
-
-
-
-
--
-
-
-
- 114,296,243
-
-
-
-
-
114,296,243
1,403,918,707
218,854,807 23,830,900
134,707,305
20,452,881
151,884,684
549,730,577-
-
-
-
-
103,124,342
218,854,807 23,830,900
134,707,305
20,452,881
151,884,684 652,854,919
-
-
-
-
- -- - - - - 82,626,369
- - - - - 82,626,369
735,481,288
301,569,336
Gross direct premium 54,941,025 29,143,566 80,827,153 6,078,704 39,968,796 210,959,244
Facultative inward premium 27,072,860 13,224,435 19,004,573 - 25,294,362 84,596,230
Administrative surcharge 1,316,642 1,391,658 2,627,929 35,956 641,677 6,013,862
Insurance premium earned 99,932,229 43,469,048 114,852,533 7,605,456 80,003,458 345,862,724
------------------------------------------------------------ Rupees ------------------------------------------------------------
Six-months period endedJune 30, 2020
Marine, aviation and transport
Motor Crop and livestock Miscellaneous TotalFire and property
damage
for the six-months period ended June 30, 2020
22
Gross written premium 92,535,648
44,611,900
108,781,563
49,829,901
57,847,056
353,606,068
Gross direct premium 58,957,358
34,694,158
73,816,329
13,752,670
56,607,908
237,828,423
Facultative inward premium 32,202,316 8,562,791 32,614,636 35,946,313 223,761 109,549,817
Administrative surcharge 1,375,974 1,354,951 2,350,598 130,918 1,015,387 6,227,828
Insurance premium earned 82,777,471 44,805,336 105,597,424 48,253,546 43,591,490 325,025,267
Net insurance premium 59,574,996 37,882,044 82,318,565 45,451,557 28,505,615 253,732,777
Commission income 1,787,177 475,168 4,785,024 203,404 3,212,889 10,463,662
Net underwriting income 61,362,173 38,357,212 87,103,589 45,654,961 31,718,504 264,196,439
------------------------------------------------------------ Rupees ------------------------------------------------------------
Insurance premium ceded to reinsurers (15,085,875) (71,292,490)(23,202,475) (23,278,859)(6,923,292) (2,801,989)
Crop and livestock
MotorSix-months period ended
June 30, 2019Miscellaneous Total
Fire and property damage
Marine, aviation and transport
Insurance claims (58,266,523) 2,595,625 (32,950,373) (4,789,769) 1,872,074 (91,538,966)
Net claims (33,621,277) 2,133,086 (28,443,000) (969,348) (1,524,406) (62,424,945)
Commission expense (16,697,717) (8,578,179) (13,349,980) (905,784) (9,603,155) (49,134,815)
Management expenses (35,528,659) (17,128,545) (41,766,207) (19,131,974) (22,210,125) (135,765,510)
(85,847,653)
(23,573,638) (83,559,187) (21,007,106) (33,337,686) (247,325,270)
Underwriting results (24,485,480)
14,783,574
3,544,402
24,647,855
(1,619,182)
16,871,169
Net investment income 8,288,688
Other income 1,275,932
Other expenses (3,065,273)
Finance cost (1,120,876)
20,620,509
Profit before tax 42,870,149
Segment assets 183,101,669
52,540,755
163,133,325
60,907,674
130,396,841
590,080,264
Unallocated assets -
- - - - 605,449,560
183,101,669
52,540,755
163,133,325
60,907,674
130,396,841
1,195,529,824
Segment assets - Operator's Fund -
- - - - -
- - - - - 144,237,902
- - - - - 144,237,902
1,339,767,726
Segment liabilities 186,360,124
29,358,334
154,081,515
26,206,648
166,178,555
562,185,176
Unallocated liabilities -
- - - - 105,793,549
186,360,124
29,358,334
154,081,515
26,206,648
166,178,555
667,978,725
-
-
-
-
- -
- - - - - 84,291,522
- - - - - 84,291,522
752,270,247
(3,396,480) 4,507,373
Segment liabilities - Operator's Fund
Net insurance claims and expenses
Profit from Window Takaful Operator's Fund
Unallocated assets - Operator's Fund
3,820,421 Insurance claims recovered from reinsurers 24,645,246 (462,539) 29,114,021
Unallocated liabilities - Operator's Fund
11Related parties comprise of chief executive officer, directors, major shareholders, key management personnel, associated companies, entities with common directors and post employment benefit plans. The transactions with related parties are carried out at commercial terms and conditions and compensation to key management personnel is on employment terms.
RELATED PARTY TRANSACTIONS
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)for the six-months period ended June 30, 2020
Half Year Report 2020
Silk Bank Limited - associated companyInsurance premium Balance at beginning of the period 42,285,116 19,764,912 Gross insurance premium written 11,368,774 7,225,479 Received / adjusted during the period (19,370,710)
(8,382,129) Balance at end of the period 34,283,180
18,608,262
Outstanding claims at beginning of the period 13,095,233
18,598,600Gross claim expense for the period 945,977
2,106,913Claim paid during the period (3,298,228)
(5,107,673)
Outstanding claims at end of the period 10,742,982
15,597,840Other transactions during the yearBank charges 8,691 16,544Profit on term deposit receipts 1,080,103
51,783
Profit on bank deposits 1,854
8,913
Tawasul Health Care TPA (Pvt.) Limited - associated companyAdvisory services -
1,664,941Advance paid against services - net 530,000
850,000
Provident fund planContributions made during the period 3,118,746 3,465,395
Transactions with ownersIssuance of Bonus Shares 75,000,000 -
Insurance claim expense
2020 2019Rupees Rupees
United Track Systems (Private) Limited - associated companyMotor tracking device charges 205,465 374,441
Apna Microfinance Bank Limited - associated companyBank Charges 1,559 2,921 Profit on term deposit receipts - 730,217 Profit on bank deposits 1,665 16,754
Six-months period ended June 30,
Transactions with related parties other than those which have been specifically disclosed elsewhere in these condensed interim financial statements are follows:
12
1313.1
13.2 Provision for taxation in these condensed interim financial statements is subject to adjustment in annual financial statements.
13.3
13.4 Figures have been rounded off to the nearest Rupees.
There is no unusual item included in these condensed interim financial statements which is affecting the assets, liabilities, equity, profit, comprehensive income and cash flows of the Company.
GENERALSeparate set of condensed interim financial statements representing assets, liabilities, revenues, expenses and profit of Window Takaful Operations has been annexed to these condensed interim financial statement as per the requirement of Takaful Rules, 2012.
DATE OF AUTHORIZATION FOR ISSUEThese condensed interim financial statements were authorized for issue by the Board of Directors of the Company on ____________________.
23 SPI Insurance Company Limited
Chief Executive Officer DirectorDirectorChairman
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)for the six-months period ended June 30, 2020
August 28, 2020
For the half year ended June 30, 2020
INDEPENDENT AUDITORS' REVIEW REPORT
To the members of SPI Insurance Company LimitedReport on review of Condensed Interim Financial Statements of Window Takaful Operations
Introduction
We have reviewed the accompanying condensed interim statement of financial position of Window Takaful Operations of SPI Insurance Company Limited (the Company) as at June 30, 2020 and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in funds, condensed interim statement of cash flows and notes to the condensed interim financial statements for the six-months period then ended (here-in-after referred to as the “condensed interim financial statements”). Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim financial statements based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of condensed interim financial 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.
Emphasis of Matter
We draw attention to Note 2.5 of the financial statements, which states that in order to comply with the requirements of General Takaful Accounting Regulations, 2019, the Company has changed its accounting policy related to recognition of wakala fee. The change in accounting policy and its impact is discussed in the said note. Our opinion is not modified in respect of this matter.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed 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.
Other Matter
The figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the three-months period ended June 30, 2020 and 2019 have not been reviewed, as we are required to review only the cumulative figures for the six-months period then ended.
The engagement partner on the review resulting in this independent auditors' review report is Inam ul Haque
RSM AVAIS HYDER LIAQUAT NAUMAN CHARTERED ACCOUNTANTSPlace: LahoreDate: August 28,2020
26 Half Year Report 2020
As at June 30, 2020
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)
27
Chief Executive Officer DirectorDirectorChairman
June 30,2020
December 31, 2019
December 31, 2018
June 30,2020
December 31, 2019
December 31, 2018
(Un-audited) (Audited) (Audited) (Un-audited) (Audited) (Audited)
ASSETS
Property and equipment 3
8,167,024
11,667,176
2,700,714
2,935,786
3,483,449
Intangible assets
-
-
124,727
138,585
173,232
Investments
In equity securities
-
-
57,721,139
55,073,351
50,473,488
In term deposits
1,100,000
1,100,000
9,400,000
9,081,302
8,529,905
Loans and other receivables
-
-
30,468,069
40,277,783
51,838,391
Takaful / Retakaful receivables 4
179,134,330
233,638,372
-
-
-
Deferred wakala fee
35,621,633
45,546,805
-
-
-
Retakaful recoveries against outstanding claims 7
20,784,167
16,089,913
-
-
-
Deferred commission expense 8
-
-
11,537,672
16,222,877
20,541,262
Prepayments
39,664,029
51,608,690
204,629
438,475
325,673
Cash and bank balances
11,267,782
11,665,613
2,139,293
3,505,865
4,101,393
Total Assets
295,738,965 371,316,569 114,296,243 127,674,024 139,466,793
Fund and Liabilities
Capital Reserves
Waqf money 500,000 500,000 - - -
Statutory fund
-
-
50,000,000
50,000,000
50,000,000
Fair value reserve
-
-
37,913
3,189,511
471,421
Revenue Reserves
Accumulated surplus
13,051,535
53,197,615
-
-
-
Accumulated loss
- -
(18,368,039)
(31,367,683)
(31,701,640)
Total Funds
13,551,535 53,697,615 31,669,874
21,821,828
18,769,781LiabilitiesUnderwriting Provisions
Unearned contribution reserves 5
134,600,774
113,867,016 -
-
-Outstanding claims (including IBNR) 7
61,741,606 76,599,077 -
-
-Contribution deficiency reserves 5,901,200 - - - -Reserve for unearned re-takaful rebate 6
8,586,673 11,313,380 - - -Unearned wakala fee - - 21,307,612 35,621,633 45,546,805Takaful / Retakaful payables - unsecured 20,688,710 56,180,068 - - -Other creditors and accruals 50,668,467 59,659,413 61,318,757 70,230,563 75,150,207Total Liabilities 282,187,430 317,618,954 82,626,369 105,852,196 120,697,012Total Fund and Liabilities
6,941,970
-
-
1,100,000
-
181,721,158
21,307,612
22,426,658
-
29,039,465
4,331,449
266,868,312
500,000
- -
25,434,826
-
25,934,826
69,597,284
66,435,132
31,474,813
6,685,545
-
18,839,118
47,901,594
240,933,486
266,868,312 295,738,965 371,316,569 114,296,243 127,674,024 139,466,793
Contingencies and Commitments 9 - - - -
The annexed notes 1 to 13 form an integral part of these condensed interim financial statements.
------------------------------ Rupees ------------------------------
Note
Participants' Takaful Fund Operator's Fund
Window Takaful OperationsSPI Insurance Company Limited
(Audited)Restated (Refer to Note No. 2.5)Restated (Refer to Note No. 2.5)
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)
28
Chief Executive Officer DirectorDirectorChairman
2020 2019 2020 2019
Rupees Rupees Rupees Rupees
Participants' Takaful Fund Revenue Account
Contributions earned 5 35,818,509
22,181,019
107,635,370
98,294,562
Less: Contributions ceded to retakaful 5 (30,253,572)
(23,912,803)
(52,790,287)
(49,722,233)
Net contributions revenue 5,564,937
(1,731,784)
54,845,083
48,572,329
Retakaful rebate earned 6 6,079,361
5,214,729 10,968,189
10,858,552
Net underwriting income 11,644,298
3,482,945
65,813,272
59,430,881
Net takaful claims 7 (5,603,120)
(6,168,965)
(17,652,604)
(16,510,414)
Contribution deficiency (25,573,613)
(14,405,758)
(25,573,613)
(14,405,758)(31,176,733) (20,574,723) (43,226,217) (30,916,172)
Other direct expenses (2,459,924) (5,960,639) (10,390,967) (8,476,281)
(Deficit) / Surplus before investment and other income (21,992,359)
(5,960,639)
12,196,088
20,038,428
Investment income 47,579
25,074
59,662
52,298
Other income 33,982 35,258 127,541 93,625
(Deficit) / surplus for the period (21,910,798)
(5,900,307)
12,383,291
20,184,351
Wakala fee 31,012,668
18,190,717
52,277,953
71,137,100
Commission expense 8 (9,860,615)
(13,093,032)
(20,434,161)
(23,475,348)
Management expenses (11,514,704)
(14,107,987)
(23,928,392)
(28,800,926)
9,637,349 (9,010,302) 7,915,400 18,860,826
Investment income 6,135,442
2,691,620
6,135,442 2,691,620
Direct expenses (616,188) (377,313) (1,086,533) (969,243)
Other income 13,201 16,688 35,335 37,306
Profit / (loss) for the period 15,169,804 (6,679,307) 12,999,644 20,620,509
The annexed notes 1 to 13 form an integral part of these condensed interim nancial statements.
Operator's Fund Revenue Account
Note
Three-months period
ended June 30,
Six-months period
ended June 30,
for the six-months period ended June 30, 2020
Restated (Refer to Note No. 2.5)
Restated (Refer to Note No. 2.5)
Half Year Report 2020
29
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
Chief Executive Officer DirectorDirectorChairman
2020 2019 2020 2019
Rupees Rupees Rupees Rupees
PARTICIPANTS' TAKAFUL FUND
(Deficit) / surplus for the period (21,910,798)
(5,900,307)
12,383,291
20,184,351
Other comprehensive income for the period - -
- -
Total comprehensive income/(loss) for the period (21,910,798) (5,900,307) 12,383,291 20,184,351
OPERATOR'S FUND
Profit / (loss) for the period 15,169,804
(6,679,307)
12,999,644
20,620,509
Other comprehensive (loss)/income for the period:
Items that may be reclassified subsequently to profit or loss:
Unrealized gain / (loss) on available -for-sale investments (1,570,475)
(1,607,536)
37,913 (779,561)
Other Item
Fair value reserve realized on sale of available -for-sale investments -
-
(3,189,511)
346,756
(1,570,475)
(1,607,536)
(3,151,598)
(432,805)
Total comprehensive income / (loss) for the period 13,599,329 (8,286,843) 9,848,046 20,187,704
The annexed notes 1 to 13 form an integral part of these condensed interim nancial statements.
Three-months period
ended June 30,
Six-months period ended
June 30,
for the six-months period ended June 30, 2020
Window Takaful OperationsSPI Insurance Company Limited
30
Chief Executive Officer DirectorDirectorChairman
CONDENSED INTERIM STATEMENT OF CHANGES IN FUNDS (UN-AUDITED)
Balance as at January 01, 2019 as previously reported 500,000 53,197,615 53,697,615
Effect of change in accounting policy (Refer Note 2.5) - 9,925,172 9,925,172
Balance as at January 01, 2019 as restated 500,000
63,122,787
63,622,787
Surplus for the period -
20,184,351
20,184,351Other comprehensive income for the period -
-
-
-
20,184,351
20,184,351
Balance as at June 30, 2019 as restated 500,000
83,307,138
83,807,138
Balance as at January 01, 2020 as restated 500,000
13,051,535
13,551,535
Surplus for the period - 12,383,291 12,383,291Other comprehensive income for the period - - -
Total comprehensive income for the period - 12,383,291
12,383,291
Balance as at June 30, 2020 500,000
25,434,826
25,934,826
Description
Balance as at January 01, 2019 as previously reported 50,000,000
471,421
13,845,165
64,316,586
Effect of change in accounting policy (Refer Note 2.5) -
- 45,546,805
45,546,805
Balance as at January 01, 2019 as restated 50,000,000 471,421
59,391,970
109,863,391
Profit for the period -
-
20,620,509
20,620,509Other comprehensive (loss) for the period -
(432,805)
-
(432,805)
-
(432,805)
20,620,509
20,187,704
Balance as at June 30, 2019 as restated 50,000,000 38,616 80,012,479 130,051,095
Balance as at January 01, 2020 as restated 50,000,000 3,189,511 (31,367,683) 21,821,828
Profit for the period -
-
12,999,644
12,999,644Other comprehensive (loss) for the period -
(3,151,598)
-
(3,151,598)
- (3,151,598) 12,999,644 9,848,046
Balance as at June 30, 2020 50,000,000 37,913 (18,368,039) 31,669,874
The annexed notes 1 to 13 form an integral part of these condensed interim nancial statements.
Attributable to participants of the PTF
Waqf money Accumulated surplus Total
Attributable to share holders of the Company
Statutory reserve Un-appropriated profit /
(Accumulated loss) Total
-------------------------------------- Rupees ----------------------------------------
Fair value reserve
----------------------------- Rupees -----------------------------Description
for the six-months period ended June 30, 2020
Half Year Report 2020
CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)
31
Chief Executive Officer DirectorDirectorChairman
2020 2019 2020 2019
Operating cash flows:
a) Operating activities:
Contribution received 53,842,795
67,572,180
-
-
Wakala fees received -
-
42,389,553
37,342,414
Retakaful contribution paid (44,015,315)
(29,943,330)
-
-
Claims paid (29,316,757) (39,044,534)
-
-
Retakaful and other recoveries received / (paid) 8,461,878
(17,423,154)
-
-
Commission paid - -
(16,936,296)
(15,746,607)
Retakaful rebate received 9,067,061
8,941,801
-
-
Direct expenses (2,396,323)
(6,726,203)
-
-
Net cash flow generated from / (used in) underwriting activities (4,356,661)
(16,623,240)
25,453,257
21,595,807
b) Other operating activities:
General and management expenses paid - -
(30,125,772)
(25,769,144)
Payment against short term leases - -
(2,364,689)
-
Other operating receipts/(payments) (2,639,334) 9,268,746 5,653,274 (364,117)
Net cash flow (used in) / generated from other operating activities (2,639,334) 9,268,746 (26,837,187) (26,133,261)
Net cash (used in) all operating activities (6,995,995)
(7,354,494)
(1,383,930)
(4,537,454)
Investment activities:
Investment income received 59,662
52,298
6,135,442
2,691,620
Investment made during the period - - (6,118,084) (2,095,372)
Fixed capital expenditure -
-
-
(9,900)
Net cash generated from investing activities 59,662 52,298 17,358 586,348
Net cash (outflow) from all activities (6,936,333)
(7,302,196)
(1,366,572)
(3,951,106)
Cash and cash equivalents at the beginning of the period 11,267,782
11,665,613
3,505,865
4,101,393
Cash and cash equivalents at the end of the period 4,331,449
4,363,417
2,139,293
150,287
Reconciliation of statement of profit or Loss
Net cash (used in) all operating activities (6,995,995) (7,354,494) (1,383,930) (4,537,454)
Depreciation/ Amortization (1,225,054) (1,750,076) (248,930) (307,693)
Contribution deficiency (25,573,613)
(14,405,758)
-
-
Increase/(Decrease) in assets other than cash 20,709,266
(16,870,529)
14,728,765
(7,357,441)
(Increase)/Decrease in liabilities 25,281,484
50,165,511
(6,267,038)
30,094,171
Investment and other income 187,203 145,923 6,170,777 2,728,926
Profit for the period 12,383,291 20,184,351 12,999,644 20,620,509
Attributed to:
Profit for the period before tax attributable to shareholders - - 12,999,644 20,620,509
Surplus in participants' equity 12,383,291 20,184,351 - -
12,383,291 20,184,351 12,999,644 20,620,509
Operator's Fund Participants' Takaful Fund
RupeesRupees
Six-months period ended June 30,
for the six-months period ended June 30, 2020
Window Takaful OperationsSPI Insurance Company Limited
LEGAL STATUS AND NATURE OF BUSINESSSPI Insurance Company Limited (the Company) is an unquoted public limited company incorporated in Pakistan on February 15, 2005 under the repealed Companies Ordinance, 1984 (now Companies Act, 2017). The Company is engaged in non-life insurance business mainly comprising of fire, marine, motor, health and miscellaneous. The Company commenced its commercial operations on April 13, 2005. The registered office of the Company is situated at suite # 204-A, Second Floor, Madina City Mall, Abdullah Haroon Road, Karachi and principal office of the Company is situated at UIG House 6-D, 1st Floor, Upper Mall, Lahore, Pakistan.The Company has been allowed to work as Window Takaful Operator through License No. 3 dated November 20, 2014 by the Securities and Exchange Commission of Pakistan under Window Takaful Rules, 2012 to carry on Islamic General Insurance in Pakistan. It has not transacted any business outside Pakistan.For the purpose of carrying on the takaful business, the Company has formed a waqf for participants' equity fund. The Waqf namely SPI Insurance Company Limited - Window Takaful Operations Waqf Fund (hereafter referred to as participant takaful fund (PTF)) on October 29, 2014 was executed under a trust deed by the Company with a ceded money of Rs. 500,000. Waqf deed also governs the relationship of Operators and policy holders for management of takaful operations, investment of policy holder's funds and investment of Operator's funds approved by Shariah advisor of the company.
BASIS OF PREPARATION Statement of compliance
These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:
-International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and
-Provisions of and directives issued under the Companies Act, 2017, Insurance Ordinance, 2000, Insurance Rules, 2017, Takaful Rules, 2012, Insurance Accounting Regulations, 2017 and General Takaful Regulations, 2019.
Where the provisions of and directives issued under the Companies Act, 2017, the Insurance Ordinance, 2000, the Insurance Rules 2017, Takaful Rules, 2012 and the Insurance Accounting Regulations, 2019 (referred to as relevant local laws) differ with the requirements of IAS 34, the provisions of and directives issued under the relevant local laws have been followed.
These condensed interim financial statements reflect the financial position and results of operations of both the Operator's Fund and Participants' Takaful Fund in a manner that the assets, liabilities, income and expenses of the Operator's Fund and Participants' Takaful Fund remain separately identifiable.
The disclosures made in these condensed interim financial statements have, however, been limited based on the requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim financial statements do not include all the information and disclosures required in a full set of financial statements as presbribed by the SECP and should be read in conjunction with the audited annual financial statements of the Operator for the year ended December 31, 2019.
These condensed interim financial statements have been presented in Pakistani Rupees, which is also the functional and presenstation currency of the Company.
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2
1
32
for the six-months period ended June 30, 2020
Half Year Report 2020
Estimates, judgements and risk management policiesThe preparation of these condensed interim financial statements in conformity with approved accounting standards, as applicable in Pakistan, requires the management to make judgments, estimates and assumptions that affect application of accounting policies and reported amounts of assets, liabilities, income and expenses.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
Significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on amounts recognized in these condensed interim financial statements are the same as those disclosed in the audited annual financial statements of the Company for the year ended December 31, 2019.
Risk management policies and procedures are consistent with those disclosed in the audited annual financial statements of the Company for the year ended December 31, 2019.
Basis of measurementThese condensed interim financial statements have been prepared under the historical cost convention except certain financial instruments that are carried at fair value. Significant Accounting PoliciesThe accounting policies and methods of computation followed in the preparation of these condensed interim financial statements are the same as those applied in the preparation of the audited financial statements of the Company for the year ended December 31, 2019, except changes in accounting policy discussed in Note 2.5 below.
Changes in Accounting Policy Adoption of new General Takaful Accounting Regulations, 2019SECP has issued the General Takaful Accounting Regulations, 2019 which includes format for the preparation and presentation of the financial statements of the Window Takafull Operations of the Company. The new Accounting Regulations are effective for the accounting periods beginning on or after 01 January, 2020. In order to comply with the requirements of these regulations, the Company has changed its accounting policy related to recognition of wakala fee which was being recognized upfront on the issue of Takaful policy. The wakala fee is now recognized over the period of Takaful. Change in accounting policy has been applied retrospectively in accordance with the requirements of IAS-8 Accounting Policy, Changes in Accounting Estimates and Errors. The impact of change in accounting policy is as under;
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)
2.2
2.2.1
2.2.2
2.3
2.4
2.5
As previously stated
As restatedAs previously
statedAs restated
Participants' Takaful Fund
Statement of financial positionDeferred wakala fee -
35,621,633 -
45,546,805 Accumulated surplus 22,976,707
13,051,535
-
- Unearned contribution reserves 89,053,969 134,600,774 68,320,211
113,867,016
Statement of Profit or LossContributions earned 113,997,982
98,294,562 168,538,159 214,084,964
Operator's FundStatement of financial positionUnearned wakala fee -
35,621,633 -
45,546,805
Accumulated loss 4,253,950 (31,367,683) 13,845,165
(31,701,640)Statement of Profit or LossWakala fee 89,821,161 71,137,100 103,654,963 115,746,423
December 31, 2019 January 01, 2019
--------------------Rupees--------------------
33
for the six-months period ended June 30, 2020
Window Takaful OperationsSPI Insurance Company Limited
June 30, December 31,
2020 2019
(Unaudited) (Audited)
Rupees Rupees
29,151,519 26,048,413
(8,296,622) (2,270,153)
20,854,897
23,778,260 167,319,054
161,065,744
(6,452,793)
(5,709,674)
160,866,261 155,356,070
181,721,158 179,134,330
3June 30, December 31,
2020 2019Note (Unaudited) (Audited)
Rupees Rupees
Operating fixed assets - owned
Participants' Takaful Fund 6,941,970 8,167,024
Operator's Fund 3.1 2,700,714 2,935,786
9,642,684 11,102,810
3.1 During the year nil (December 31, 2019: Rs. 9,900) additions were made in Office Equipement.
4
Less: provision for impairment of receivables from takaful participants holders
Less provision for impairment of due from other insurers / reinsurers
PROPERTY AND EQUIPMENT
Due from other takaful/ retakaful operators
TAKAFUL / RETAKAFUL RECEIVABLES - PTF
Due from takaful participants holders
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)
34
Application of new and revised international financial reporting standardsStandards, amendments to published approved accounting standards and interpretations becoming effective in current period:There are certain new standards, amendments and International Financial Reporting Interpretations Committee (IFRIC) interpretations that became effective during the period and are mandatory for accounting periods of the Company beginning on or after January 01, 2020 but are considered not to be relevant or not to have any significant effect on the Company's operations. The new standards, amendments and IFRIC interpretations that are relevant to the operations of the Company are disclosed in the audited annual financial statements of the Company for the year ended December 31, 2019.
Standards, amendments to published approved accounting standards and interpretations becoming effective in future periods:There are other new standards, amendments and IFRIC interpretations that are mandatory for accounting periods of the Company beginning on or after January 01, 2020 but are considered not to be relevant or not to have any significant effect on the Company's operations. The new standards, amendments and IFRIC interpretations that are relevant to the operations of the Company are disclosed in the audited annual financial statements of the Company for the year ended December 31, 2019.
2.6.1
2.6
2.6.2
for the six-months period ended June 30, 2020
Half Year Report 2020
5
Written gross contribution
Less: Wakala Fee
Contribution net of Wakala Fee
Contribution earned
Re-takaful contribution ceded
Re-takaful expense
Net Contribution
6
Retakaful rebate received
Add: Unearned re-takaful rebate - Opening
Less: Unearned re-takaful rebate - Closing
NET CONTRIBUTION
Add: Unearned contribution reserve - Opening
Add: Prepaid re-takaful contribution - Opening
Less: Prepaid re-takaful contribution - Closing
Less: Unearned contribution reserve - Closing
RETAKAFUL REBATE
2020 2019 2020 2019
Rupees Rupees Rupees Rupees
4,586,493 4,264,449 9,067,061 8,941,801
8,178,413 10,346,909 8,586,673 11,313,380
(6,685,545) (9,396,629) (6,685,545) (9,396,629)
6,079,361 5,214,729 10,968,189 10,858,552
Participants' Takaful Fund
Three-months period ended June 30,
Six-months period endedJune 30,
2020 2019 2020 2019
Rupees Rupees Rupees Rupees
41,746,621
38,971,842
94,909,833
116,447,975 (16,698,648)
(15,588,737)
(52,277,953)
(71,137,100) 25,047,973
23,383,105
42,631,880
45,310,875 80,367,820
59,681,240 134,600,774 113,867,013
(69,597,284)
(60,883,326) (69,597,284) (60,883,326)
35,818,509 22,181,019 107,635,370 98,294,562
21,315,089
19,741,945 42,165,723 41,382,439
37,977,948
47,439,754 39,664,029 51,608,690
(29,039,465)
(43,268,896)
(29,039,465)
(43,268,896)
30,253,572 23,912,803 52,790,287 49,722,233
5,564,937 (1,731,784) 54,845,083 48,572,329
Participants' Takaful Fund
Three-months period
ended June 30,
Six-months period ended
June 30,
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)
35
7
Claims Paid
Claims expense
Less: Re-takaful and other recoveries received
Add: Re-takaful and other recoveries in respect of outstanding claims - Closing
Less: Re-takaful and other recoveries in respect of outstanding claims - Opening
Re-takaful and other recoveries revenue
Net Claims Expense
CLAIMS EXPENSE
Less: Outstanding claims including IBNR - Opening
Add: Outstanding claims including IBNR - Closing
2020 2019 2020 2019Rupees Rupees Rupees Rupees
15,953,678
16,559,975
29,316,757
39,044,534
66,435,132
69,480,693
66,435,132
69,480,693
(64,758,417)
(71,577,419)
(61,741,606)
(76,599,077)
17,630,393 14,463,249 34,010,283 31,926,150
9,581,825
4,672,494
14,715,188
17,755,502
22,426,658
13,750,147
22,426,658
13,750,147
(19,981,210)
(10,128,357)
(20,784,167)
(16,089,913)
12,027,273
8,294,284
16,357,679
15,415,736
5,603,120
6,168,965
17,652,604
16,510,414
Three-months period
ended June 30,
Six-months period ended
June 30,
Participants' Takaful Fund
for the six-months period ended June 30, 2020
Window Takaful OperationsSPI Insurance Company Limited
10
Participants' Takaful Fund
Gross written contribution 32,300,983
9,957,681
41,526,711
7,740,291 3,384,167
94,909,833
Gross direct contribution 19,595,780
9,670,337
23,693,472
7,702,291 1,670,574
62,332,454
Facultative inward contribution 12,401,795
244,576
17,670,659
- 1,695,769
32,012,799
Administrative surcharge 303,408 42,768 162,580 38,000 17,824 564,580
Takaful contribution earned 41,251,071
9,105,584
41,339,481
14,581,336 1,357,896
107,635,368
(33,820,697) (5,709,464) (11,026,596) - (2,233,530) (52,790,287)
Net takaful contribution 7,430,374
3,396,120
30,312,885
14,581,336
(875,634)
54,845,081
Rebate income 6,770,968 1,265,345 2,027,020 - 904,856 10,968,189
Net underwriting income 14,201,342
4,661,465
32,339,905
14,581,336
29,222
65,813,270
Takaful claims (15,790,292)
(5,498,771)
(9,203,998)
(2,991,370)
(525,852)
(34,010,283)
Net claims (6,856,970)
(1,179,878)
(6,538,364)
(2,991,370)
(86,022)
(17,652,604)
Direct expenses (3,536,392) (1,090,192) (4,546,448) (847,426) (370,507) (10,390,965)
Contribution deficiency expense (23,568,857)
(1,324,254)
(2,233,539)
- 1,553,037
(25,573,613)
Net takaful claims and expenses (33,962,219)
(3,594,324)
(13,318,351)
(3,838,796) 1,096,508
(53,617,182)
Underwriting results (19,760,877)
1,067,141
19,021,554
10,742,540 1,125,730
12,196,088
Net investment income 59,662
Other income 127,541
Surplus for the period 12,383,291
Segment assets 95,742,744
22,161,710
91,266,925
14,820,115
9,195,788 233,187,282
Unallocated assets -
-
-
-
-
33,681,030
266,868,312
16,357,679
Miscellaneous
Takaful contribution ceded to retakaful
Takaful claims recovered from retakaful
Fire and property damage
439,830
SEGMENT INFORMATION
2,665,634 -
------------------------------------------------------------ Rupees ------------------------------------------------------------
Marine, aviation and transport
MotorSix-months period ended
June 30, 2020Total
8,933,322 4,318,893
Health
9
There is no significant change in the contingencies and commitments reported in the audited annual financial statements for the year ended December 31, 2019.
CONTINGENCIES AND COMMITMENTS
8
2020 2019 2020 2019Rupees Rupees Rupees Rupees
Commission paid or payable 7,333,381 12,035,134 15,748,956 21,194,590
Add: Deferred commission expense - Opening 14,064,906 19,318,402 16,222,877 20,541,262
Less: Deferred commission expense - Closing (11,537,672) (18,260,504) (11,537,672) (18,260,504)
9,860,615 13,093,032 20,434,161 23,475,348
COMMISSION EXPENSE
Three-months period
ended June 30,
Six-months period ended
June 30,
Operator's Fund
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)
36
for the six-months period ended June 30, 2020
Half Year Report 2020
5,237,844 52,295,402 28,078,336 1,738,830 116,448,008
3,794,624 35,574,999 12,749,266 1,263,257 77,774,184
1,400,132 16,605,529 15,289,574 459,394 37,703,371
43,088 114,874 39,496 16,179 970,453
4,797,115 42,946,712 7,408,629 2,598,255 98,294,557
(3,952,166) (11,939,251) - (1,195,653) (49,722,233)
844,949 31,007,461 7,408,629 1,402,602 48,572,324
869,473 2,260,192 - 298,783 10,858,552
1,714,422
33,267,653
7,408,629
1,701,385
59,430,876
(5,611,587)
(8,416,135)
(3,007,445)
(212,452)
(31,926,150)
6,919,684 1,183,220 - 184,042 15,415,736
1,308,097
(7,232,915)
(3,007,445)
(28,410)
(16,510,414)
(381,264)
(3,806,596)
(2,043,830)
(126,570)
(8,476,276)
(331,847) (2,835,634) - (435,997) (14,405,758)
594,986
(13,875,145)
(5,051,275) (590,977)
(39,392,448)
1,119,436
47,142,798
12,459,904
2,292,362
20,038,428
52,29893,625
20,184,351
29,097,563
24,392,038
3,948,742
756,783
40,543,846 (32,635,163)
7,908,683 7,430,104
15,338,787
(14,678,531)
7,128,790
(7,549,741)
(2,118,019)
(10,802,280)
(20,470,040) 35,808,827
Total
------------------------------------------------------------ Rupees ------------------------------------------------------------
MiscellaneousFire and property
damageMarine, aviation and transport
Motor Health
Participants' Takaful Fund
Gross written contribution
Gross direct contribution
Facultative inward contribution
Administrative surcharge
Takaful contribution earned
Net takaful contribution
Rebate income
Net underwriting income
Takaful claims
Net claims
Direct expenses
Contribution deficiency expense
Net takaful claims and expenses
Underwriting results
Net investment incomeOther income
Surplus for the period
Takaful contribution ceded to retakaful
Takaful claims recovered from retakaful
Six-months period endedJune 30, 2019
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)
37
Segment liabilities 94,502,157
9,000,728
65,345,156
11,031,177
13,152,673
193,031,891
Unallocated liabilities -
-
-
-
-
47,901,595
240,933,486
Operator's Fund
Wakala fee 20,145,228
4,240,557
20,277,841
6,059,144 1,555,183
52,277,953
Commission expense (9,216,715)
(1,817,830)
(6,553,630)
(2,315,046)
(530,940)
(20,434,161)
Management expenses (23,928,392)
Investment income 6,135,442
Other income 35,335
Direct expenses (1,086,533)
Profit for the period 12,999,644
Segment assets 4,933,126 344,385 5,703,651 131,687 424,823 11,537,672
Unallocated assets - - - - - 102,758,571
114,296,243
Segment liabilities - - - - - -
Unallocated liabilities - - - - - 82,626,369
82,626,369
Six-months period endedJune 30, 2020
Fire and property damage
Marine, aviation and transport
Motor Health Miscellaneous Total
------------------------------------------------------------ R upees ------------------------------------------------------------
for the six-months period ended June 30, 2020
Window Takaful OperationsSPI Insurance Company Limited
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)
38
14,861,425
137,286,883
65,371,851
5,983,182
328,132,676
-
-
-
-
15,380,517
343,513,193
8,488,470
84,049,593
46,818,322
6,070,052
221,785,583
104,629,335 -
76,359,146
- -
-
-
-
68,834,536
290,620,119
Segment assets
Unallocated assets
Segment liabilities
Unallocated liabilities
Operator's Fund
Wakala fee 24,666,766 12,093,593 1,189,712 71,137,100Commission expense (12,000,346)
(8,791,262)
(1,248,255)
(312,214)
(23,475,348)
Management expenses (28,800,926)
Investment income 2,691,620
Other income 37,306
Direct expenses (969,243)
Profit for the period 20,620,509
Segment assets 6,369,481
4,738,423
278,529
18,260,504
Unallocated assets -
-
-
125,977,398
144,237,902
Segment liabilities -
-
-
-
Unallocated liabilities -
-
-
105,852,196
105,852,196
11
2020 2019Rupees Rupees
Silk Bank Limited - (Associated Company)532
1,016 59,662
52,298
Contribution receivable
Balance at beginning of the period 2,323,736 25,432Gross contribution written 1,470,264
1,806,417
Received / adjusted during the period (3,108,201)
(1,803,608)
Balance at end of the period 685,799
28,241
Insurance claim expense
Outstanding claims at beginning of the period 266,075
383,923
Gross claim expense for the period 64,279
134,217
Claim paid during the period (82,430)
(221,876)
Outstanding claims at end of the period 247,924
296,264
Other balances with associated companyTerm deposits 1,100,000
1,100,000
Profit and loss sharing accounts 640,437 120,461Current accounts 28,190 1,720,366
Provident fund planContributions made during the period 182,807 183,822
Bank chargesProfit on term deposit receipts
RELATED PARTY TRANSACTIONS
Six-months period endedJune 30,
------------------------------------------------------------ R upees ------------------------------------------------------------
Six-months period endedJune 30, 2019
Fire and property damage
Marine, aviation and transport
Motor Health Miscellaneous Total
31,110,900
6,782,597
-
-
-
2,076,129(1,123,271)
91,474
-
-
-
The related parties comprise United Track Systems (Pvt.) Limited and Silk Bank Limited (Islamic - Emaan) on the basis of related group companies, entities under common control, entities with common directors, major shareholders, key management personnel and employee retirement benefits fund. Amount due to / from and other significant transactions, other than those disclosed elsewhere in these financial statements, are as follows:
for the six-months period ended June 30, 2020
Half Year Report 2020
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)
39
Chief Executive Officer DirectorDirectorChairman
There is no unusual item included in the condensed interim financial statements which is affecting the assets, liabilities, profit / surplus / loss / deficit, comprehensive income / loss, funds or cash flows of the window takaful operations of the Company.
These are separate financial condensed interim financial statements of Window Takaful Operations of the Company and are annexed with the condensed interim financial statements of the Company as per requirement of Takaful Rules, 2012.
Figures have been rounded off to the nearest Rupees.
These condensed interim financial statements were authorized for issue by the Board of Directors of the Company on ____________________.
12
13
13.1
13.2
13.3
GENERAL
DATE OF AUTHORIZATION FOR ISSUE
for the six-months period ended June 30, 2020
Window Takaful OperationsSPI Insurance Company Limited
August 28, 2020
40 Half Year Report 2020