Premier Insurance : Transmission of Quarterly Report for the Period Ended 30-Sep-2023

Interim Financial Statements

for the nine month period ended September 30, 2023

(Unaudited)

Company Information

Corporate Governance

Report of the Directors to Members 03

Financial Statements

Condensed Interim Statement of	06
Financial Position
Condensed Interim Statement of	07
Profit and Loss
Condensed Interim Statement of	08
Comprehensive Income
Condensed Interim Statement of	09
Changes in Equity
Condensed Interim Statement of	10
Cashflows
Notes to the Condensed Interim	12
Financial Statements

Financial Statement (Window Takaful)

Condensed Interim Statement of	27
Financial Position
Condensed Interim Statement of	28
Profit and Loss
Condensed Interim Statement of	29
Comprehensive Income
Condensed Interim Statement of	30
Changes in Fund
Condensed Interim Statement of	31
Cash Flows

Notes to the Condensed Interim	33
Financial Statements

COMPANY INFORMATION

Board of Directors	Chief Executive Officer
Mr. Khalid Bashir	Mr. Nadeem Maqbool
(Chairman)	Chief Financial Officer
Mr. Ahsan Bashir	Mr. Amjed Bahadur Ali
Mr. Attaullah A. Rasheed
Company Secretary
Mr. Imran Maqbool	Mr. Fariq Mahmood Khan Rohilla
Mrs. Rukhsana Saleem
Mr. Sharik Bashir
Mr. Salman Rafi

Audit Committee

Mrs. Rukhsana Saleem

(Chairman)

Mr. Ahsan Bashir

(Member)

Mr. Imran Maqbool

(Member)

Mr. Rao Ali Zeeshan

(Secretary)

Investment Committee

Mr. Ahsan Bashir

(Chairman)

Mr. Nadeem Maqbool

(Member)

Mr. Imran Maqbool

(Member)

Mr. Attaullah A. Rasheed

(Member)

Mr. Amjed Bahadur Ali

(Secretary)

Ethics, Human Resource,

Remuneration & Nomination

Committee

Mr. Salman Rafi

(Chairman)

Mr. Sharik Bashir

(Member)

Mr. Nadeem Maqbool

(Member)

Mrs. Rukhsana Saleem

(Member)

Ms. Niina Afridi

(Secretary)

Claim Settlement

Committee

Mr. Imran Maqbool

(Chairman)

Mr. Ahsan Bashir

(Member)

Mr. Nadeem Maqbool

(Member)

Mr. Hassan Mustafa

(Secretary)

QUARTER AND NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2023

01

COMPANY INFORMATION

Underwriting Committee

Mr. Attaullah A. Rasheed

(Chairman)

Mr. M. K. Baig

(Member)

Mr. Afzal Ur Rehman

(Member)

Ms. Humera Jawaid

(Secretary)

Risk Management &

Compliance Committee

Mr. Nadeem Maqbool

(Chairman)

Mr. Sharik Bashir

(Member)

Mr. Amjed Bahadur Ali

(Member)

Ms. Niina Afridi

(Secretary)

Registrar

FAMCO Associates (Pvt) Ltd

8-F, Next to Hotel Faran, Nursery, Block-6, P.E.C.H.S., Shahrah-e-Faisal, Karachi.

• : (21) 34380101-2 F : (21) 34380106
  E : [e-mail]

Reinsurance & Co-Insurance Committee

Mr. Sharik Bashir

(Chairman)

Mr. Afzal Ur Rehman

(Member)

Mr. Ali Muhammad

(Member / Secretary)

Auditors

BDO Ebrahim & Co.

Chartered Accountants

Legal Advisors

Arfn & Company Advocate

Registered & Head Office

5th Floor, State Life Building No.2A Wallace Road, Karachi-74000, Pakistan.

• : (21) 32416331-4 F : (21) 32416572 E : [e-mail] W : www.pil.com.pk

QUARTER AND NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2023

02

Report of the

Directors to Members

The Directors are pleased to present the unaudited condensed interim financial statements of the Company for the nine months period ended September 30, 2023.

Performance Review

Following is the overall performance of the Company.

	Conventional	Takaful
	Sep 30, 2023	Sep 30, 2022	Sep 30, 2023	Sep 30, 2022
		(Rupees in '000)
Premium / contribution written	432,562	453,716	148,857	135,267
Net Premium / contribution	235,174	212,116	66,967	85,302
Underwriting Result	(58,810)	(169,866)	(10,021)	(21,388)
Investment income / (Loss)	31,535	1,392	319	23
Profit / (Loss) before taxation	(31,439)	(144,626)	(4,550)	(18,334)
Profit / (Loss) after taxation	(38,301)	(151,117)	-	-
Earning / (Loss) per share	(0.76)	(2.99)

Conventional Business

On the Conventional side, gross premium written during the nine months period ended September 30, 2023 was Rs. 432.56 million as compared to Rs. 453.72 million in the corresponding period. Net premium for the period under review increased by Rs. 23.06 million as compared to the previous year. Our net claims for the period were Rs.122.53 million as against Rs. 211.75 million of the previous year. Investment Income was Rs. 31.44 million as against Rs. 1.39 million of the same period last year.

Window Takaful Operation

In Takaful gross contribution written during the nine months period ended September 30, 2023 was Rs. 148.86 million as against Rs. 135.27 million of the same period last year. Net contribution decrease by Rs. 18.33 million as compared to the last year. Net claims for the period were Rs.76.95 million as against Rs. 86.12 million of the previous year.

Future Outlook

Although the nation's economic outlook is still difficult, we are optimistic that business conditions will improve and your organization is well-positioned to seize any chances that arise. Our objectives are still to increase revenue and profitability through restructuring and cost cutting. Restructuring the portfolio to eliminate loss-making customers is still on, and more is being done to improve profitable segments like automotive and marine. Our nine-month results are better than those from the same period last year, and we aim to continue improving them in the remaining months of the year. It is expected that this upward trend will continue in the remaining months of the year, and we are confident that our efforts to write high-quality content will enable us to record much better outcomes in the future.

QUARTER AND NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2023

03

Report of the

Directors to Members

Acknowledgement

The directors would like to thank all our valued customers for their continued patronage and support, also would like to thank to the Securities & Exchange Commission of Pakistan and State Bank of Pakistan for their guidance and assistance. It is a matter of deep gratification for your Directors to place on record their appreciation of the efforts made by all the Company employees.

On behalf of the Board

Chairman	CEO / Director
Karachi, Dated: October 30, 2023

QUARTER AND NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2023

04

2022	30	2023	30	2022	30	2023	30
135,267	148,857	453,716	432,562
85,302	66,967	212,116		235,174
(21,388)	(10,021)	(169,866)	(58,810)
	23		319		1,392		31,536
(18,334)	(4,550)	(144,626)	(31,439)
	-		-	(151,117)	(38,301)
				(2.99)		(0.76)
							ء2023	30
		QUARTER AND NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2023
						05

CONDENSED INTERIM

STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2023

	Note	(Unaudited)	(Audited)
	30 September	31 December
		2023	2022
ASSETS		(Rupees in '000)
7	198,274	205,205
Property and equipment
Intangible assets	8	602	776
Investment properties	9	321,317	321,317
Investments	10	465,673	541,795
- Equity securities
- Mutual funds	10	79,175	71,233
Investment in associate	11	232,402	248,436
Loans and other receivables	21,926	24,580
Insurance / reinsurance receivables	12	560,106	557,966
Reinsurance recoveries against outstanding claims	19	277,132	489,897
Salvage recoveries accrued	20	925	596
Deferred commission expense	23,700	28,694
Taxation - provision less payment		16,962	19,271
Deferred tax asset	13	50,739	50,333
Prepayments	124,732	132,702
Cash and bank	14	56,125	53,729
Total Assets of Window Takaful Operations - Operator's Fund	15	2,429,790	2,746,530
113,108	97,396
TOTAL ASSETS		2,542,898	2,843,926
EQUITY AND LIABILITIES
Capital and reserves attributable to Company's equity holders		505,650	505,650
Ordinary share capital
Reserves		1,276,040	1,367,000
Accumulated losses		(1,055,538)	(1,017,237)
TOTAL EQUITY		726,152	855,413
LIABILITIES
Underwriting provisions	19	634,053	897,213
Outstanding claims including IBNR
Unearned premium reserves	18	326,985	332,080
Premium deficiency reserves	20	3,059	3,059
Unearned reinsurance commission	18,489	24,251
Retirement benefit obligations		8,227	7,742
Lease liabilities		4,282	7,972
Insurance / reinsurance payables	16	493,968	411,414
Other creditors and accruals	254,335	238,609
Unclaimed dividends		22,442	22,746
TOTAL LIABILITIES		1,765,840	1,945,086
Total Liabilities of Window Takaful Operations - Operator's Fund		50,905	43,427
TOTAL EQUITY AND LIABILITIES		2,542,898	2,843,926
CONTINGENCIES AND COMMITMENTS	17

The annexed notes 1 to 32 form an integral part of these condensed interim financial statements.

Chief Executive	Chairman	Director	Director	Chief Financial
Officer				Officer

QUARTER AND NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2023

06

CONDENSED INTERIM STATEMENT OF

PROFIT AND LOSS ACCOUNT (unaudited)

FOR THE QUARTER AND NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2023

	Note	Quarter ended	Nine months period ended
	30September 30September	30September 30September
		2023	2022	2023	2022
			(Rupees in '000)
Net insurance premium	18	78,798	75,267	235,174	212,116
Net insurance claims	19	(27,255)	(54,017)	122,529	(211,755)
Net commission expense and		(4,175)	(3,658)	(14,654)	(11,122)
other acquisition costs	20
Insurance claims and		(31,430)	(57,675)	(137,183)	(222,877)
acquisition expenses
Management expenses	21	(71,813)	(66,232)	(156,801)	(159,105)
Underwriting results		(24,445)	(48,640)	(58,810)	(169,866)
Investment income	22	4,941	7,805	31,535	1,392
Rental income		1,131	1,211	3,673	3,596
Revaluation gain on investment		-		-	13,500
property
Other income	23	1,556	234	5,974	20,006
Other expenses	24	(1,050)	(2,095)	(3,193)	(4,378)
		6,578	7,155	37,98931,411	34,115
Results of operating activities		(17,867)	(41,485)	20,821	(135,751)
Finance costs - lease liability		(145)	(282)	(491)	(899)
Share of loss associate		(319)	(366)	(319)	(1,208)
Loss before tax from		(18,331)		(21,630)	(137,857)
General Insurance Operations		(42,133)
Profit / (loss) before tax from Window Takaful	15,036	9,719	(9,809)	(6,769)
Operations - Operator's Fund
Loss before tax		(3,295)	(32,414)	(31,439)	(144,626)
Income tax expense	25	(4,829)	(4,022)		(6,491)
Loss after taxation		(8,124)	(36,436)	(38,301)	(151,117)
Loss per share - basic and diluted	26	(0.16)	(0.74)	(0.76)	(2.29)

The annexed notes 1 to 32 form an integral part of these condensed interim financial statements.

Chief Executive	Chairman	Director	Director	Chief Financial
Officer				Officer

QUARTER AND NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2023

07

CONDENSED INTERIM STATEMENT OF

COMPREHENSIVE INCOME (unaudited)

FOR THE QUARTER AND NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2023

	Note	Quarter ended	Nine months period ended
	30September	30September	30September	30September
		2023	2022	2023	2022
			(Rupees in '000)
Loss after taxation		(8,124)	(36,436)	(38,301)	(151,117)
Other comprehensive income / (loss) :
Items that may be reclassifed
subsequently to profit or loss account
Unrealized income / (loss) on	29
available-for-sale	3,325	(79,040)	(75,245)	(98,341)
investments during the period
Share of other comprehensive loss		(15,715)	(44,987)	(15,715)	(53,402)
from associated company
Other comprehensive		(12,390)	(124,027)	(90,960)	(151,743)
(loss) for the period
Total comprehensive loss for the period	(20,514)	(160,463)	(129,261)	(302,860)

The annexed notes 1 to 32 form an integral part of these condensed interim financial statements.

Chief Executive	Chairman	Director	Director	Chief Financial
Officer				Officer

QUARTER AND NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2023

08