Jubilee Life Insurance jubilant about its 2012 performance

By Kazim Alam, The Express Tribune

KARACHI: Revenues of Jubilee Life Insurance Company (JLIC) grew 57% to Rs14.1 billion in 2012, according to the company’s financial results posted on the website of the Karachi Stock Exchange (KSE) on Thursday.

Profit after tax of JLIC remained Rs553.4 million for the year ended December 31, 2012, which is 47.7% higher than the corresponding figure for 2011, the announcement said.

Speaking to The Express Tribune, JLIC CEO Javed Ahmed said his company had become the largest player in the country’s private-sector life insurance business. “Growth that you have seen in private-sector life insurance companies in the past three years has primarily been driven by JLIC,” he said.

While gross premiums of JLIC increased at an annualised rate of 29.1% between 2006 and 2011, they registered a much higher year-on-year rise of 47% in 2012 to reach Rs12.1 billion. Its earnings per share increased from Rs5.97 to Rs8.82 over the same period.

In contrast, gross premiums of EFU Life Assurance – a private life insurance company that announced its financial results earlier in the month – increased to Rs11.8 billion in 2012, up 16.8% from Rs10.1 billion in 2011.

JLIC’s total assets increased in 2012 to Rs23.5 billion, up 49% from Rs15.8 billion in 2011. Out of Rs23.5 billion in assets, Rs22.8 billion belongs to the company’s investment portfolio while the rest exists in the forms of receivables and fixed assets, Ahmed noted. Investment and other incomes of JLIC increased to Rs2.6 billion in 2012, up a whopping 112% from Rs1.2 billion in 2011.

The increase in JLIC’s management expenses was 41% in 2012, which is relatively less than the increase in the company’s gross premiums, investment income and total revenues. However, JLIC paid over Rs9 billion in claims, which was 67.7% higher than what it paid in the preceding year.

Up to 2011, the share of JLIC in the life insurance sector of Pakistan was 12.1% in terms of gross premiums. However, Ahmed said he expects it to have grown “significantly” in 2012. Many life insurance companies have yet to release their last year’s performance figures.

The JLIC’s board of directors also proposed a final cash dividend of Rs4.50 per share for 2012.

At the end of the trading session on the KSE on Thursday, the closing rate of the JLIC stock was Rs91. On February 28, 2012, its share price was Rs67, which translates into a share price appreciation of 35.8% over the last one year.

Published in The Express Tribune, March 1, 2013.

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