IGI Holdings’ full-year profit climbs 65pc

KARACHI: Profit of IGI Holdings (formerly IGI Insurance Limited) rose around 65 percent to Rs4.07 billion for the year ended December 31, 2017, translating into earnings per share (EPS) of Rs33.16, a bourse filing said on Wednesday.

The insurance company’s profit amounted to Rs2.47 billion with EPS of Rs20.13 in the preceding year, a notice to Pakistan Stock Exchange said.

IGI Holdings declared final cash dividend for the year at Rs4/share. The annual profit increased despite a decline in operating revenue to Rs10.41 billion in 2017 from Rs12.87 billion in 2016. Operating expenses rose to Rs6.87 billion from Rs5.36 billion.

Analyst Umair Naseer at Topline Securities said the profit was up “due to sharp rise in share of profit from associates that jumped to Rs2.8 billion versus Rs1.3 billion”. Profit of Packages Limited, one of its associates, doubled to Rs10.79 billion in 2017. The jump in profit also stemmed from a sharp decrease in policyholders’ liabilities, which amounted to Rs992.3 million in 2017 as compared to Rs5.33 billion in the preceding year, according to the notice.

Adamjee’s profit falls 65pc in 2017

Adamjee Insurance’s profit fell around 65 percent to Rs1.2 billion for the year ended December 31, 2017, translating into EPS of Rs3.44.

The insurer recorded a profit of Rs3.49 billion with EPS of Rs9.98 for the preceding year.

Adamjee Insurance announced a final cash dividend of Re1 for the year. This is in addition to interim dividend already paid at Rs1.5/share.

The profit decreased despite increase in net premium revenue to Rs24.84 billion in 2017 as compared to Rs20.53 billion in 2016. Growing insurance claims as well as increase in policyholders’ liabilities gave blow to the company’s profit margin.

Adamjee Insurance’s net claims surged 26 percent to Rs11.83 billion in 2017, while policyholders’ liabilities increased 28 percent to Rs27.1 billion.