Atlas Insurance : Transmission of Quarterly Report for the Period Ended 30-9-2023

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2023Quarterly Report September 0,2

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Contents

Company Overview

02 Company Information

Corporate Governance

1. Chairman's Review (English)

1. Chairman's Review (Urdu)
2. Directors' Review (English)
3. Directors' Review (Urdu)

Condensed Interim Financial Statements

1. Condensed Interim Statement of Financial Position
2. Condensed Interim Profit and Loss Account
3. Condensed Interim Statement of Comprehensive Income
4. Condensed Interim Statement of Changes in Equity
5. Condensed Interim Cash Flow Statement

16 Notes to and Forming Part of the Condensed Interim Financial Statements

Condensed Interim Financial Statements - Window Takaful Operations

1. Condensed Interim Statement of Financial Position
2. Condensed Interim Profit and Loss Account
3. Condensed Interim Statement of Comprehensive Income
4. Condensed Interim Statement of Changes in Funds
5. Condensed Interim Cash Flow Statement

38 Notes to and Forming Part of the Condensed Interim Financial Statements

Other Information

48 Company Offices

Company Information

Board of Directors

Iftikhar H. Shirazi

Chairman / Non-Executive Director

Ali H. Shirazi

Non-Executive Director

Frahim Ali Khan

Non-Executive Director

Hasan Reza ur Rahim

Independent Director

Muhammad Habib-ur-Rahman

Non-Executive Director

Roohi Raees Khan

Independent Director

Babar Mahmood Mirza

Chief Executive / Executive Director

Muhammad Afzal

Company Secretary

Audit Committee

Hasan Reza ur Rahim

Chairman

Ali H. Shirazi

Member

Frahim Ali Khan

Member

Muhammad Afzal

Secretary

Saleem Mahmood Akhtar

Chief Internal Auditor

Ethics, Human Resource & Remuneration Committee

Roohi Raees Khan

Chairperson

Ali H. Shirazi

Member

Frahim Ali Khan

Member

Babar Mahmood Mirza

Member

Qudsia Naheed

Secretary

Investment Committee

Ali H. Shirazi

Chairman

Frahim Ali Khan

Member

Muhammad Habib-ur-Rahman Member

Babar Mahmood Mirza

Member

Muhammad Aasim Gul

Member

Muhammad Afzal

Secretary

Underwriting, Reinsurance &

Co-Insurance Committee

Ali H. Shirazi

Chairman

Babar Mahmood Mirza

Member

Rashid Amin

Member

Syed Nasir Hussain

Member

Syed Irtiza Kazmi

Secretary

Claims Settlement Committee

Frahim Ali Khan

Chairman

Babar Mahmood Mirza

Member

Muhammad Aasim Gul

Member

Muhammad Saeed

Member

Athar Maqsood Paracha

Secretary

Quarterly Report September 2023

Company Information

Risk Management & Compliance Committee

Babar Mahmood Mirza

Chairman

Muhammad Aasim Gul

Member

Rashid Amin

Member

Muhammad Saeed

Member

Athar Maqsood Paracha

Secretary

Information Technology (IT) Committee

Babar Mahmood Mirza

Chairman

Rashid Amin

Member

Muhammad Saeed

Member

Abdul Razzaq Ghauri

Member

Wasim Ahmed

Secretary

Management Committee

Babar Mahmood Mirza

Chief Executive Officer

Muhammad Aasim Gul

Chief Financial Officer

Rashid Amin

GM Reinsurance & Compliance

Abbas Sajjad

General Manager Sales & Marketing

Muhammad Saeed

General Manager Claims

Qudsia Naheed

General Manager HR & Admin

Syed Irtiza Kazmi

General Manager Underwriting

Abdul Razzaq Ghauri

Head of IT

Syed Nasir Hussain

Head of Reinsurance

Shariah Advisor

Mufti Zeeshan Abdul Aziz

GM Compliance

Rashid Amin

Auditors

EY Ford Rhodes

Chartered Accountants

Legal Advisors

Mohsin Tayebaly & Co.

Haroon Dugal Law Chambers

Tax Advisor

EY Ford Rhodes

Chartered Accountants

Share Registrar

Hameed Majeed Associates (Pvt) Limited

H. M. House, 7-Bank Square,

Shahrah-e-Quaid-e-Azam, Lahore

Tel: [phone]

Fax: [phone]

Bankers

Askari Bank Limited

Bank Alfalah Limited

Bank Al Habib Limited

Bank Islami Limited

Faysal Bank Limited

FINCA Microfinance Bank Limited

Habib Bank Limited

MCB Bank Limited

Meezan Bank Limited

National Bank of Pakistan

NRSP Microfinance Bank

Sindh Bank Limited

Soneri Bank Limited

Summit Bank Limited

United Bank Limited

Registered & Head Office

663/A, Block - XX, Phase III (Commercial), Khyaban-e-Iqbal, DHA, Lahore.

Tel: [phone]

Fax: [phone]

E mail: [e-mail]

Website: www.ail.atlas.pk

Atlas Insurance Limited

Chairman's Review

It gives me great pleasure to present the un-audited accounts of your Company for the nine months period ended September 30, 2023.

The Economy

Since the beginning of FY-24, Pakistan's economy has taken some necessary steps to resume its recovery. The relaxation of import controls is normalizing the supply of raw materials and supporting export-oriented industries. FDI has also increased by 16.1% during Jul- Aug FY-24 on account of the rise in foreign investments and appreciation of the Pak Rupee versus USD.

CPI inflation for the first quarter of FY-24 recorded at 29% on a year-on-year basis. The government's stern administrative measures to curtail the hoarding of commodities and foreign currency resulted in slight moderation in inflation. However, given the international oil prices and adjustment in energy prices, uncertainty in inflation trajectory will remain for some time.

The current account posted a deficit of USD 935 million for Jul-AugFY-24 as against a deficit of USD 2.0 billion last year, largely reflecting an improvement in the trade balance. During the same period, workers' remittances recorded at USD 4.1 billion as compared to USD 5.3 billion last year, down by 21.6 %, mainly on account of economic slowdown in the host countries and the wide differential between the exchange rate in interbank and open market which is now being actively addressed. Exports declined by 8.3% and stood at USD 4.5 billion against USD 4.9 billion last year. Significantly, imports declined by 26% and stood at USD 8.5 billion as against USD 11.5 billion last year. Resultantly the trade deficit stood at USD 3.9 billion against USD 6.5 billion last year, down by 26%. Forex reserves stood at USD 13 billion at the end of the first quarter of FY-24. During the first quarter of FY-24, the stock market experienced a handsome growth of 11.5%, as the benchmark KSE-100 Index surged by 4,781 points on a quarterly basis.

FBR provisional tax collection during the first quarter of FY-24 grew by 24.2% to Rs.2,041 billion against Rs.1,644 billion last year. It also met the target of Rs.1,978 billion set for the quarter. The large manufacturing scale sector (LSM) is slowly recovering from a major slump, although remained negative in July FY-24. Lifting import restrictions is paving the way for resumption of production albeit at a sub-optimal level. Strong recovery of cash crops is also resulting in strong liquidity in the Agri-economy. This bodes well for the demand of durable goods.

The Company

During the period under review your Company performed well and underwrote gross premium along with Takaful contribution aggregating to Rs. 5,418 million against Rs. 4,296 million of the same period last year, up 26%. The net premium increased to Rs. 1,700 million against Rs. 1,533 million of the same period last year, up 11%. The underwriting profit was Rs. 686.46 million compared to 660.17 million of the corresponding period last year, up 4%. Investment income improved to Rs. 343.46 million against loss of Rs. 73.164 million of the corresponding period last year, mainly due to better dividend income and return on debt securities. The Company earned profit before tax of Rs. 1,216 million against Rs. 695.34 million of the same

Gross Premium &

Contribution

(Rs. in million)

4,296	26%	5,418
9M 2022		9M 2023

Quarterly Report September 2023

period last year, up 75%. After providing for tax, the profit after tax stood at Rs. 665.78 million compared to Rs. 414.40 million of the same period last year, up 61%.

Future Outlook

FY-24 seems more challenging due to an economic recovery plan that requires elimination of subsidies and regular price hikes of key utilities - electricity and gas. International oil price pressure will also keep the inflation entrenched at a level that will significantly affect purchasing power. The interim government has initiated some steps that have started to yield desired results. However, more meaningful reforms are still needed to unlock the economic potential. The government has expressed the intention to privatize SOEs and improve the governance in the energy sector, to bring efficiencies in their operations.

As the economy returns to full capacity and recovery becomes durable, the insurance sector is expected to continue its growth momentum. Your Company is well aligned to take advantage of the situation and is hopeful of maintaining market share along with ensuring reasonable returns to the shareholders. The management believes that commitment, devotion and grooming of human capital will lead to organizational development. This in turn will continue to yield better results for the Company. Moreover, such endeavors will also benefit the economy and the society at large:

(Always strive for the best)

Acknowledgement

I would like to thank the Board of Directors, Mr. Babar Mahmood Mirza, Chief Executive Officer and his team for their efforts, dedication and sincerity of purpose. I would also express my gratitude to all the reinsurers, our valued clients, banks and SECP for their support and guidance.

Iftikhar H. Shirazi

Atlas Insurance Limited

Quarterly Report September 2023

Gross Premium &

Contribution

(Rs. in million)

4,296

26%

5,418

9M 2022

9M 2023

Atlas Insurance Limited

Directors' Review

The directors have pleasure in submitting the quaterly report of the Company together with the unaudited financial statements for the period ended September 30, 2023.

	September 30,	September 30,
	2023		2022
The overall business figures are:		(Rupees in thousand)
Gross Premium	4,929,780		3,884,385
Gross Contribution	488,223		411,159
Net premium	1,700,435		1,533,196
Net claims	480,649		536,454
Investment and other income	526,052		10,161
Net commission	125,894		194,974
Expenses of management	659,221		531,544
Financial results are as follows:
Profit before tax	1,215,779		695,343
Less: Provision for taxation	549,999		280,943
Profit after tax	665,780		414,400
Chairman's Review

The accompanying Chairman's Review deals with the performance of the Company during the period and future outlook. The Directors of the Company endorse the contents of the review.

We express our deep appreciation and thanks to our valued clients, bankers, reinsurers and SECP for the cooperation extended to us.

We also commend the dedicated services rendered by the company's officers, staff and field force.

	For and on behalf of the
	Board of Directors
	Babar Mahmood Mirza
Lahore: October 30, 2023	Chief Executive

Quarterly Report September 2023

Atlas Insurance Limited