Non-life insurance sector posts 140pc growth

KARACHI: The profitability of non-Life insurance sector grew by 140 percent for the period ended June 30, 2015 led by higher investment income and improved underwriting business.
Major players including Adamjee Insurance (AICL), Jubilee General Insurance (JGICL) and EFU General Insurance (EFUG) posted impressive earnings growth of 298 percent, 178 percent and 106 percent respectively.
Umair Nasir at Topline Securities said these players had a combined share of over 58 percent in total profitability of non-life insurance sector.
“Investment income that contributes significantly to the earnings of non-life insurance companies grew by 139 percent to Rs3.7 billion, driving the overall profitability of the sector during the period under review. Higher dividend income and capital gains on equity portfolio contributed to investment income as well.”
AICL’s investment income grew significantly by 172 percent to Rs 859 million in Q2’15 driving the overall investment income of the sector. AICL investment income contributes around 23 percent to the total investment income of the sector.
Underwriting business of the sector also grew by 79 percent to Rs1.3 billion led by improved macros, increased car business and better security situation.