East West Insurance : EWIC | East West Insurance Company Limited Transmission of Quarterly Report for the Period Ended 30-06-2023

DIRECTORS' REVIEW REPORT TO THE MEMBERS'

Your Directors are pleased to present their report together with un-audited Six months Financial Statements for the period ended June 30, 2023

The statistic covers the annexed Financial Statements of conventional general insurance and Window Takaful operation comprising:

0 Condensed interim statement of financial position;

0 Condensed interim statement of profit and loss account;

0 Condensed interim statement of comprehensive income;

0 Condensed interim statement of changes and equity;

0 Condensed interim cash flow statement;

0 Notes to the condnsed interim financial information;

We are confident that this information would adequately apprise the valued shareholders about the performance of their Company.

The financial highlight of the company for the period ended June 30, 2023 is as follows:

	(Unaudited)
Result of operating activites	368,339,001
Profit before tax from Window Takaful Operations	28,038,336
Profit before tax	396,377,337
Income tax expenses	(99,253,514)
Profit after taxation	297,123,823
Other Comprehensive income	1,512,922
Total Comprehensive income	298,636,745
Unappropriated profit at beginning of the year	228,086,249
Profit for the period	297,123,823
Unappropriated at the end of the period	525,210,072
	June, 30 2023	June, 30 2022
	---------- (Unaudited) ----------
Gross premium	2,974,091,056	2,179,205,610
Net premium	1,835,105,576	1,317,508,978
Underwriting results	308,223,881	257,371,314
Investment income	153,770,082	104,252,695
Profit before tax (including Window Takaful Operations)	396,377,337	268,765,731
Profit after tax (including Window Takaful Operations)	297,123,823	197,564,173
Earnings per share - basic and diluted (Rupees)	1.69	1.12

On behalf of the Board of Directors

Naved Yunus

Chief Executive Officer

Karachi : August 29, 2023

INDEPENDENT AUDITOR'S REVIEW REPORT

TO THE MEMBERS OF EAST WEST INSURANCE COMPANY LIMITED REPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTS

Introduction

We have reviewed the accompanying condensed interim statement of financial position of East West Insurance Company Limited ("the Company") as at June 30, 2023 and related condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim statement of cash flows, condensed interim statement of changes in equity and notes to the condensed interim financial statements for the six-month period then ended (here-in-after referred as the 'condensed interim financial statements'). Management is responsible for the preparation and presentation of these interim financial statements in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these interim financial statements based on our review. The figures of the condensed interim unconsolidated statement of comprehensive income for the three months period ended June 30, 2023 and related comprehensive information have not been reviewed and we do not express a conclusion on them.

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 interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

The engagement partner on the review resulting in this independent auditor's review report is Imran Shaikh.

Crowe Hussain Chaudhury & Co.

Chartered Accountants

Place: Karachi

Date:

UDIN:

EAST WEST INSURANCE COMPANY LIMITED

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UNAUDITED) AS AT JUNE 30, 2023

		June 30,	December 31,
		2023	2022
		(Unaudited)	(Audited)
ASSETS	Note	--------------Rupees--------------
Property and equipment	6	145,104,738	111,347,201
Right of use of assets	7	13,248,408	17,436,579
Intangible assets	8	848,422	873,732
Investment properties	9	46,973,206	48,177,647
Investments
Equity securities	10	1,722,320,920	1,471,940,394
Debt securities	11	437,989,361	636,422,267
Term deposit receipts (TDRs)	12	11,000,000	190,295,368
		2,171,310,281	2,298,658,029
Loans and other receivables	13	343,162,142	76,870,969
Insurance / reinsurance receivables	14	1,385,669,219	916,409,398
Reinsurance recoveries against outstanding claims	22	1,000,202,750	1,062,320,280
Deferred commission expense	23	408,897,143	378,287,611
Deferred tax assets		12,158,887	10,892,951
Prepayments	15	834,087,719	821,287,617
Cash and bank	16	116,965,904	31,320,794
		6,478,628,819	5,773,882,808
Total assets of window takaful operations
Operator's fund		251,781,902	219,476,000
TOTAL ASSETS		6,730,410,721	5,993,358,808
EQUITY AND LIABILITIES
Capital and reserves attributable to Company's equity holders
Issued, subscribed and paid-up capital		1,758,913,880	1,758,913,880
Reserves	17	482,022,948	480,510,026
Unappropriated profit		525,210,072	228,086,249
TOTAL EQUITY		2,766,146,900	2,467,510,155
LIABILITIES
Underwriting provisions
Outstanding claims including IBNR	22	1,402,205,290	1,457,395,011
Unearned premium reserves	21	1,422,037,064	1,477,391,055
Unearned reinsurance commission	23	210,689,576	176,821,681
		3,034,931,930	3,111,607,747
Retirement benefit obligations		2,192,592	1,717,036
Premium received in advance	18	437,405,100	75,171,158
Lease liability against right of use of asset		16,024,935	19,936,638
Insurance / reinsurance payables		32,660,252	33,170,381
Other creditors and accruals	19	201,622,894	113,908,168
Taxation - net		174,129,244	106,933,378
TOTAL LIABILITIES		3,898,966,947	3,462,444,506
Total liabilities of window Takaful
Operations - Operator's Fund		65,296,874	63,404,147
TOTAL EQUITY AND LIABILITIES		6,730,410,721	5,993,358,808
CONTINGENCIES AND COMMITMENTS	20

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

CHAIRMAN CHIEF EXECUTIVE OFFICER DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER

EAST WEST INSURANCE COMPANY LIMITED

CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UNAUDITED)

FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 2023

		Six months period ended	Three months period ended
		June 30,	June 30,	June 30,	June 30,
	Note	2023	2022	2023	2022
Net insurance premium	21	1,835,105,576	1,317,508,978	937,293,258	699,814,328
Net insurance claims	22	(807,581,680)	(588,075,311)	(411,458,998)	(310,356,514)
Net commission	23	(472,831,218)	(284,370,651)	(338,467,151)	(192,292,838)
Insurance claims and
acquisition expenses		(1,280,412,898)	(872,445,962)	(749,926,149)	(502,649,352)
Management expenses	24	(246,468,797)	(187,691,702)	(113,883,534)	(102,545,851)
Underwriting results		308,223,881	257,371,314	73,483,575	94,619,125
Investment income	25	153,770,082	74,089,421	104,252,695	34,806,533
Other income	26	9,533,947	5,543,720	7,881,271	4,961,875
Other expenses	27	(101,390,124)	(85,856,054)	(64,071,123)	(49,907,596)
Finance cost	28	(1,798,785)	(247,860)	(634,940)	(218,012)
Results of operating
activities		368,339,001	250,900,541	120,911,478	84,261,925
Profit before tax from
Window takaful operations	29	28,038,336	17,865,190	15,197,607	11,213,600
Profit before tax		396,377,337	268,765,731	136,109,085	95,475,525
Income tax expense		(99,253,514)	(71,201,558)	(85,242,122)	(56,190,579)
Profit after taxation		297,123,823	197,564,173	50,866,963	39,284,946
			(Restated)		(Restated)
Earnings per share -
basic and diluted	30	1.69	1.12	0.29	0.22

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

CHAIRMAN CHIEF EXECUTIVE OFFICER

DIRECTOR

DIRECT CHIEF FINANCIAL OFFICER

EAST WEST INSURANCE COMPANY LIMITED

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 2023

	Six months period ended	Three months period
	June 30	June 30	June 30	June 30
	2023	2022	2023	2022
Note	--------------Rupees--------------	------------Rupees------------
Profit after taxation	297,123,823	197,564,173	50,866,963	39,284,946
Other comprehensive income
Items that may be reclassified
subsequently to profit and loss account
Unrealised gain on available for sale
investments - net of deferred tax	-	-	-	-
Reclassification of loss included in
profit and loss account	1,512,922	1,488,269	1,363,422	1,338,769
	1,512,922	1,488,269	1,363,422	1,338,769
Total comprehensive income for the period	298,636,745	199,052,442	52,230,385	40,623,715

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

CHAIRMAN CHIEF EXECUTIVE OFFICER

DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER