Half Yearly ReportFor the Period Ended
June 30, 2016
Company Information
Board of Directors;
Chief Executive Officer
Chief Financial Officer
Company Secretary
Audit Committee
Investment Committee
Human Resources Committee
Claims Committee
Reinsurance and Coinsurance Committee
Legal Advisor
Nasir Ali Ch. Zahoor Ahmed (Chief Executive Officer)Ather Zahoor Ghulam MustafaRaees-ud-DinRehan Beg Amal Usman
Ch. Zahoor Ahmed
Azhar Hafeez Ch.
Mazhar Zahoor
Rehan Beg (Chairman)Raees-ud-DinAther Zahoor
Rais-ud-Din (Chairman)Ch. Zahoor Ahmed Rehan Beg
Athar Zahoor (Chairman)Amal UsmanNasir Ali
Ghulam Mustafa (Chairman)Usman AliMian Muhammad Iqbal (Secretary)
Nasir Ali (Chairman) Muhammad Maqsood PerachaGhulam Mustafa
M. Javed Iqbal (Advocate Supreme Court)Ch. M. Maqsood (Advocate Supreme Court)
(Chairman)Auditors
Tax Consultants
IFS Rating
Share Registrars
Registered and Head Office
Contacts
Rahman Sarfraz Rahim Iqbal RafiqChartered Accountants
Kamran & Co.Chartered Accountants
Rating Companies: PACRA and JCR VISRating: A-
Corplink (Private) Limited
Cooperative Bank House5 Bank Square, Shahrah e Quaid e AzamLahore
Tel.: +92 (42) 3732-4404; 3722-3224Fax: +92 (42) 3723-0895; 3723-0634Email: [email protected]: www.pgi.com.pk
The Pakistan General Insurance Company Limited 01
The Pakistan General Insurance Company Limited02
Directors’ Report to the Shareholders
The Board of Directors of “The Pakistan General Insurance Company Limited” ('the Company') is pleased to present the un-audited but reviewed (limited) condensed interim financial statements for the half year ended June 30, 2016.
The operational performance of the Company during first half of 2016 is satisfactory; the comparative analysis of the half yearly results at a glance is as under –
Jun 30 / 2016 Jun 30 / 2015 Increase / (Decrease)Rupees Rupees
Rupees % age
Underwriting
Net premiums 135,905,503
8,141,646 6.37%
Net claims expenses
67,556,069 5,806,670
9.72%
Underwriting profit
23,431,997 (13,277,519)
-36.17%Claim ratio 48.24% 3.14%
Investments In shares 24,364,931 (10,550,953)
-30.22%
In short-term bank placements 238,500,000 20,000,000
9.15%In properties 40,605,193 (1,041,159)
-2.50%
Investment income
7,871,618 (8,518,729) -51.97%Rental income
2,060,750 (1,406,560) -40.57%
Profitability / Equity
Share capital 400,012,500 -
-
0.00%Underwriting profits
23,431,997 (13,277,519)
-36.17%Profit before tax 19,609,225 (19,300,659) -49.60%Other expenses 51,419,366
127,763,85759,749,39936,709,516
46.77%
34,915,884218,500,000
41,646,35216,390,347
3,467,310
400,012,50036,709,51638,909,88438,205,854 13,213,512 34.59%
Net premiums had increased by 6.37% from Rs. 127.764 million in 2015 to Rs. 135.906 million in 2016, primarily due to decrease in reinsurance expenses as the reinsurance treaties were changed from proportional to excess of loss basis. Net claims have increased by 9.72% which resulted in an increase in claims ration of 3.14% closing at 48.24% from 46.77% as compared to the corresponding period. The above results reflect the effective risk management, firm underwriting guidelines and philosophy, good decision making and tireless efforts of the management and field staff of the Company.
The Company is conscious of the challenges which are being faced by the economy due to spiraling inflation and rising energy crises have crippled the already affected economy of the country. We are striving hard to sustain our performance under these circumstances. We also hope that the macro economic challenges will be addressed soon to enable conducive environment for the growth of industry.
The Company maintains a visible record of good corporate governance which is periodically monitored by the audit committee. We thank our business partners for their continued patronage and the Company staff for their dedicated efforts.
For and on behalf of the Board
Nasir AliChairman
Lahore.August 30, 2016
The Pakistan General Insurance Company Limited
Auditors' Report to the Members on Review of Interim Financial Information
Introduction
We have reviewed the accompanying condensed interim balance sheet of The Pakistan General Insurance Company Limited as at 30 June 2016 and the related
i) condensed interim statement of comprehensive income (profit and loss account),ii) condensed interim statement of changes in equity,iii) condensed interim statement of cash flows,iv) condensed interim statement of premiums,v) condensed interim statement of claims,vi) condensed interim statement of expenses,vii) condensed interim statement of investment income, and
notes to the accounts for the half year then ended (here-in-after referred to as the “interim financial information”). Management is responsible for the preparation and presentation of this interim financial information in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on this interim financial information based on our review.
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 interim financial information is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting.
Other Matter Paragraph
The figures of the condensed interim financial information for the quarter ended 30 June 2016 have not been reviewed as we are required to review only cumulative figures for the half year ended on that date.
Rahman Sarfaraz Rahim Iqbal RafiqCHARTERED ACCOUNTANTSEngagement Partner: A. Rahman MirLahore: August 30, 2016
03
The Pakistan General Insurance Company Limited04
Jun 30 / 2016 Jun 30 / 2015 Increase / (Decrease)Rupees Rupees Rupees % age
Underwriting Net premiums 135,905,503
8,141,646 6.37%
Net claims expenses 67,556,069 5,806,670
9.72%Underwriting profit 23,431,997 (13,277,519)
-36.17%
Claim ratio 48.24% 3.14%
Investments
In shares 24,364,931 (10,550,953)
-30.22%In short-term bank placements 238,500,000 20,000,000
9.15%In properties 40,605,193 (1,041,159)
-2.50%Investment income 7,871,618 (8,518,729) -51.97%Rental income 2,060,750 (1,406,560) -40.57%
Profitability / Equity
Share capital 400,012,500 -
-
0.00%Underwriting profits 23,431,997 (13,277,519) -36.17%Profit before tax 19,609,225 (19,300,659) -49.60%Other expenses 51,419,366
127,763,85759,749,39936,709,516
46.77%
34,915,884218,500,000
41,646,35216,390,347
3,467,310
400,012,50036,709,51638,909,88438,205,854 13,213,512 34.59%
The Pakistan General Insurance Company Limited 05
2016/ /30
¶46.77%
~2015 ì��48.24% »Z���ZìXZk�wæg3 3.14% æg3~
The Pakistan General Insurance Company Limited06
Condensed Interim Balance Sheet As at June 30, 2016
(Un-Audited)
EQUITY AND LIABILITIES
Share capital and reserves
Authorized share capital50,000,000 (Dec. 31, 2015: 50,000,000) ordinary shares of Rs. 10 each 500,000,000 500,000,000
Issued, subscribed and paid-up share capital 5 400,012,500 400,012,500General reserves 114,987,500 114,987,500Un-appropriated profit 109,867,448 123,767,700Total equity 624,867,448 638,767,700
Surplus on revaluation of fixed assets 6 9,459,102 9,586,146
Underwriting provisions
Provision for outstanding claims (including IBNR) 57,945,264 44,509,457Provision for unearned premium 164,758,642 204,517,465Commission income unearned 6,054,407 21,205,556Total underwriting provisions 228,758,313 270,232,478
Deferred liability
Deferred taxation 2,056,710 2,662,815
Creditors and accruals
Amounts due to other insurers / reinsurers 31,386,024 31,139,980Accrued expenses 649,105 1,300,425Taxation - provision less payments 12,753,827 9,673,789Other creditors 20,393,820 11,770,534
65,182,776 53,884,728
Other liabilities
Unpresented dividend warrants 405,316 235,913405,316 235,913
Total liabilities 296,403,115 327,015,934
Total equity and liabilities 930,729,665 975,369,780
Contingencies and commitments 7
The annexed notes from 1 to 16 form an integral part of this condensed interim financial information.
Un - audited Audited
June 30, 2016 Dec. 31, 2015
Note --------------Rupees--------------
Director(Ather Zahoor)
Director(Ghulam Mustafa)
Chief Executive / Principal Officer(Ch. Zahoor Ahmed)
Chairman(Nasir Ali)
The Pakistan General Insurance Company Limited 07
Condensed Interim Balance Sheet As at June 30, 2016
(Un-Audited)
ASSETS
Cash and bank deposits
Cash and other equivalentsCurrent and other accountsDeposits maturing within 12 monthsDeposits maturing after 12 months
Loans - unsecured; considered good
To employees
Investments
Investment properties
Current assets - others
Premiums due but unpaid - unsecuredAmount due from other insurers / reinsurers - unsecuredAccrued investment incomeReinsurance recoveries against outstanding claimsDeferred commission expensesPrepaid reinsurance premium cededPrepaymentsAdvance for purchase of buildingSundry receivables
Fixed assets
Tangible fixed assets - Owned - land and buildings - furniture, fixtures and office equipment - vehicles
Total assets
The annexed notes from 1 to 16 form an integral part of this condensed interim financial information.
252,311 166,30942,185,448 39,229,427
238,500,000 218,500,00040,858,423 39,800,000
321,796,182 297,695,736
4,387,460 4,401,410
8 24,364,931 34,915,884
40,605,193 41,646,352
299,433,202 338,559,47511,984,782 13,665,871
1,639,820 1,639,8202,022,612 2,022,612
20,929,359 23,600,99946,438,795 113,866,968
297,039 537,99156,400,000 -
5,927,261 4,469,945445,072,870 498,363,681
966,197,565 67,894,938
5,201,301 5,475,05423,104,163 24,976,72594,503,029 98,346,717
930,729,665 975,369,780
Un - audited Audited
June 30, 2016 Dec. 31, 2015
Note --------------Rupees--------------
Director(Ather Zahoor)
Director(Ghulam Mustafa)
Chief Executive / Principal Officer(Ch. Zahoor Ahmed)
Chairman(Nasir Ali)
Condensed Interim Profit and Loss Account /Statement of Comprehensive Income (Un-Audited)For the Half Year Ended June 30, 2016
The Pakistan General Insurance Company Limited08
Aggregate Aggregate
June 30, 2016 June 30, 2015
Revenue account
Net premium revenue 57,149,386 57,597,971 7,325,941 13,832,205 135,905,503 127,763,857Net claims (38,040,850) (27,608,068) 92,849 - (65,556,069) (59,749,399)Expenses (18,516,313) (13,889,645) (1,357,921) (3,898,581) (37,662,460) (20,543,351)Net commission (3,332,265) (4,573,600) (735,756) (613,356) (9,254,977) (10,761,591)Underwriting result (2,740,042) 11,526,658 5,325,113 9,320,268 23,431,997 36,709,516
Investment income 7,871,618 16,390,347Rental income 2,060,750 3,467,310Other income 1,766 5,214Finance cost (200,764) (179,238)General and administration expenses (13,556,142) (17,483,265)
(3,822,772) 2,200,368
Profit before tax 19,609,225 38,909,884Provision for taxation
- current (4,242,626) (11,655,860)- deferred 606,105 (1,214,862)
(3,636,521) (12,870,722)
Profit after tax 15,972,704 26,039,162
Other comprehensive income for the period
Items that may not be subsequently reclassified to profit and loss acount:Incremental depreciation on revalued assets 127,044 133,731Items that may be subsequently reclassified to profit and loss acount: -Total other comprehensive income for the period 127,044 133,731
Total comprehensive income for the period 16,099,748 26,172,893
Profit and loss appropriation account
Balance at beginning of the period 123,767,700 56,860,719Total comprehensive income for the period 16,099,748 26,172,893Final dividend for the year 2015 - @ Rs. 0.75 per share (30,000,000) -Balance at end of the period 109,867,448 83,033,612
Earnings per share - basic and dilutive - note 13 0.40 0.65
The annexed notes from 1 to 16 form an integral part of this condensed interim financial information.
------------------------------------------------------------- Rupees -------------------------------------------------------------
Motor Others
Fire and
property
damage
Marine,
aviation and
transport
Half Year Ended
Director(Ather Zahoor)
Director(Ghulam Mustafa)
Chief Executive / Principal Officer(Ch. Zahoor Ahmed)
Chairman(Nasir Ali)
The Pakistan General Insurance Company Limited 09
Condensed Interim Profit and Loss Account /Statement of Comprehensive Income (Un-Audited)For the Quarter Ended June 30, 2016
Aggregate Aggregate
June 30, 2016 June 30, 2015
Revenue account
Net premium revenue 14,249,047
23,702,529
3,492,248
9,613,306
51,057,130
88,885,755Net claims (25,926,500)
(12,737,004)
-
320,000
(38,343,504)
(40,637,100)Expenses (2,629,518)
(2,040,459)
225,343
(2,388,753)
(6,833,387)
(10,703,915)Net commission 688,174
(2,388,776)
(555,867)
(63,702)
(2,320,171) (11,459,566)Underwriting result (13,618,797)
6,536,290
3,161,724
7,480,851
3,560,068
26,085,174
Investment income 4,430,060
8,078,029Rental income 1,544,850 1,891,395Other income 518
4,524Finance cost (96,237)
(14,660)General and administration expenses (3,281,744)
(6,290,443)
2,597,447
3,668,845
Profit before tax 6,157,515 29,754,019Provision for taxation
- current (3,852,589) (11,497,474)- deferred 606,105
(1,214,862)
(3,246,484) (12,712,336)
Profit after tax 2,911,031
17,041,683
Other comprehensive income for the period
Items that may not be subsequently reclassified to profit and loss acount:Incremental depreciation on revalued assets 63,521 66,865Items that may be subsequently reclassified to profit and loss acount: -
Total other comprehensive income for the period 63,521
66,865
Total comprehensive income for the period 2,974,552
17,108,548
Earnings per share - basic and dilutive - note 13 0.07
0.43
The annexed notes from 1 to 16 form an integral part of this condensed interim financial information.
Quarter Ended
------------------------------------------------------------- Rupees -------------------------------------------------------------
Fire and
property
damage
Marine,
aviation and
transport
Motor Others
Director(Ather Zahoor)
Director(Ghulam Mustafa)
Chief Executive / Principal Officer(Ch. Zahoor Ahmed)
Chairman(Nasir Ali)
The Pakistan General Insurance Company Limited10
Condensed Interim Statement of Changes in Equity (Un-Audited)For the Half Year Ended June 30, 2016
Balance as at December 31, 2014 375,000,000
140,000,000
56,860,719
571,860,719
Total comprehensive income for the period -
-
26,172,893
26,172,893Bonus shares issued during the period 25,012,500
(25,012,500)
-
-
Balance as at June 30, 2015 400,012,500
114,987,500
83,033,612
598,033,612
Total comprehensive income for the period -
-
40,734,088
40,734,088
Balance as at December 31, 2015 400,012,500 114,987,500 123,767,700 638,767,700
Total comprehensive income for the period - - 16,099,748 16,099,748Final dividend for the year 2015 - @ Rs. 0.75 per share (30,000,000)
(30,000,000)
Balance as at June 30, 2016 400,012,500 114,987,500 109,867,448 624,867,448
The annexed notes from 1 to 16 form an integral part of this condensed interim financial information.
--------------------------------- Rupees---------------------------------
Total
Equity
Share
Capital
Un-
appropriated
profit
General
Reserves
Director(Ather Zahoor)
Director(Ghulam Mustafa)
Chief Executive / Principal Officer(Ch. Zahoor Ahmed)
Chairman(Nasir Ali)
Condensed Interim Statement of Cash Flow (Un-Audited)For the Half Year Ended June 30, 2016
The Pakistan General Insurance Company Limited 11
June 30, 2016 June 30, 2015
NoteOperating cash flows
a) Underwriting activities 10 117,108,033 104,891,634b) Other operating activities
Income taxes paid (1,162,588) (1,972,116)General and management expenses paid (33,319,597)
(32,417,395)Other operating receipts 7,406,922
70,444Net cash generated (used in) other operating activities (27,075,263)
(34,319,067)Total cash flow from all operating activities (a+b) 90,032,770
70,572,567
Investing activities
Profit / return received 7,064,651
14,439,308Dividends received 12,133
181,301Rentals received 2,060,750
3,467,310Other income received 1,766
5,214Proceeds from disposal of investments 24,677,622
-Payment for acquisition of investments (13,331,835)
-Advance for purchase of buildings (56,400,000)
Fixed capital expenditure -
(314,620)Total cash (out) / in flow from investing activities (35,914,913)
17,778,513
Financing activities(Loans issued) / repayments received - net 13,950 18,426Financial charges paid (200,764)
(179,238)
Dividends paid (29,830,597)
-
Total cash used in financing activities (30,017,411)
(160,812)
Net cash inflow from all activities 24,100,446 88,190,268Cash at the beginning of the period 297,695,736
329,261,852Cash at the end of the period 321,796,182
417,452,120
Reconciliation to profit and loss account
Operating cash flows 90,032,770
70,572,567Depreciation expense (4,884,847)
(6,238,861)Gain / (loss) on remeasurement of investments 171,537
(276,543)Finance cost (200,764)
(179,238)Investment income 7,064,651
16,485,589Rental income 2,060,750
3,467,310Dividend income 12,133
181,301Other income 1,766
5,214Gain on disposal of investments 623,297
-(Increase) in assets other than cash (109,690,811)
(77,346,852)Increase in liabilities other than running finance 30,782,222 19,368,675Profit after taxation 15,972,704 26,039,162
Definition of cash
Cash for the purpose of the statement of cash flows consists of:Cash and other equivalents 252,311 867,499Current and other accounts 42,185,448 99,084,621Deposits maturing within 12 months 238,500,000 280,000,000Deposits maturing after 12 months 40,858,423 37,500,000
321,796,182 417,452,120
The annexed notes from 1 to 16 form an integral part of this condensed interim financial information.
----------Rupees---------
Director(Ather Zahoor)
Director(Ghulam Mustafa)
Chief Executive / Principal Officer(Ch. Zahoor Ahmed)
Chairman(Nasir Ali)
The Pakistan General Insurance Company Limited12
Condense
d Inte
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June 3
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June 3
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7,85
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20,6
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Gro
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Wri
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Openin
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6Ju
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Dire
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Mar
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69,8
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45,5
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5
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39,7
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479,
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8,14
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3,49
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-
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ief Ex
ec
utive
/ P
rin
cip
al O
ffic
er
(Ch
. Za
ho
or
Ah
me
d)
Ch
airm
an
(Na
sir
Ali)
The Pakistan General Insurance Company Limited 13
Busi
ness
und
erw
ritte
n in
side
Pak
ista
n
Cla
ss o
f Bus
ines
sO
penin
gC
losi
ng
Openin
gC
losi
ng
June 3
0, 2
016
June 3
0, 2
01
5
Dir
ect a
nd fa
culta
tive
Fire
and
pro
pert
y da
mag
e25
,135
,000
1,25
7,90
014
,175
,000
38,0
52,1
0011
,250
898,
500
898,
500
11,2
5038
,040
,850
35,0
16,0
65
Mar
ine,
avi
atio
n an
d tr
ansp
ort
26,9
00,0
0042
,432
,196
43,1
40,2
6427
,608
,068
-70
4,11
270
4,11
2-
27,6
08,0
6820
,500
,988
Mot
or96
,512
189,
361
-(9
2,84
9)-
--
-(9
2,84
9)12
1,54
6
Oth
ers
-63
0,00
063
0,00
0-
-42
0,00
042
0,00
0-
-4,
110,
800
52,1
31,5
1244
,509
,457
57,9
45,2
6465
,567
,319
11,2
502,
022,
612
2,02
2,61
211
,250
65,5
56,0
6959
,749
,399
Cla
ss o
f Bus
ines
sO
penin
gC
losi
ng
Openin
gC
losi
ng
June 3
0, 2
016
June 3
0, 2
01
5
Dir
ect a
nd fa
culta
tive
Fire
and
pro
pert
y da
mag
e12
,650
,000
-14
,175
,000
26,8
25,0
00-
-89
8,50
089
8,50
0
25,9
26,5
00
25,0
23,5
65
Mar
ine,
avi
atio
n an
d tr
ansp
ort
12,8
00,0
0044
,447
,870
43,1
40,2
6411
,492
,394
-1,
948,
722
704,
112
(1,2
44,6
10)
12,7
37,0
04
13,1
02,7
40
Mot
or-
--
--
--
-
-
(116
,505
)
Oth
ers
-60
0,00
063
0,00
030
,000
-70
,000
420,
000
350,
000
(320
,000
)
2,62
7,30
0
Tota
l25
,450
,000
45,0
47,8
7057
,945
,264
38,3
47,3
94-
2,01
8,72
22,
022,
612
3,89
0
38,3
43,5
04
40,6
37,1
00
The
anne
xed
note
s fr
om 1
to 1
6 fo
rm a
n in
tegr
al p
art o
f thi
s co
nden
sed
inte
rim
fina
ncia
l inf
orm
atio
n.
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
---
(Rup
ees)
---
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
---
Cla
ims
Exp
ense
s
Cla
ims
Paid
Cla
ims
Paid
Outs
tandin
g
Cla
ims
Hal
f yea
r en
ded
Outs
tandin
g
Cla
ims
Cla
ims
Exp
ense
s
Rein
sura
nce
and O
ther
Reco
veri
es
Rece
ived
Rein
sura
nce
and O
ther
Reco
veri
es
in r
esp
ect
of
Outs
tandin
g C
laim
s
Rein
sura
nce
and O
ther
Reco
veri
es
Revenue
Net
Cla
ims
Exp
ense
s
----
----
---(
Rupe
es)-
----
----
--
Qua
rter
end
ed
Net
Cla
ims
Exp
ense
s
Rein
sura
nce
and O
ther
Reco
veri
es
in r
esp
ect
of
Outs
tandin
g C
laim
s
Rein
sura
nce
and O
ther
Reco
veri
es
Revenue
Rein
sura
nce
and O
ther
Reco
veri
es
Rece
ived
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
---
(Rup
ees)
---
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
---
----
----
---(
Rupe
es)-
----
----
--
Condense
d Inte
rim
Sta
tem
ent
of
Cla
ims
(Un-A
udited)
For
the H
alf Y
ear
and Q
uart
er
Ended J
une 3
0, 2
01
6
Dire
cto
r(A
the
r Za
ho
or)
Dire
cto
r(G
hu
lam
Mu
sta
fa)
Ch
ief Ex
ec
utive
/ P
rin
cip
al O
ffic
er
(Ch
. Za
ho
or
Ah
me
d)
Ch
airm
an
(Na
sir
Ali)
The Pakistan General Insurance Company Limited14
Condense
d Inte
rim
Sta
tem
ent
of
Exp
ense
s (U
n-A
udited)
For
the H
alf Y
ear
and Q
uart
er
Ended J
une 3
0, 2
01
6
Busi
ness
und
erw
ritte
n in
side
Pak
ista
n
Cla
ss o
f Bus
ines
sO
penin
gC
losi
ng
June 3
0, 2
01
6Ju
ne 3
0, 2
01
5
Dir
ect a
nd fa
culta
tive
Fire
and
pro
pert
y da
mag
e12
,423
,644
11,8
37,3
9311
,107
,681
13,1
53,3
5618
,516
,313
31,6
69,6
699,
821,
091
21,8
48,5
7817
,385
,979
Mar
ine,
avi
atio
n an
d tr
ansp
ort
7,32
1,00
67,
828,
621
7,19
5,64
47,
953,
983
13,8
89,6
4521
,843
,628
3,38
0,38
318
,463
,245
8,49
9,89
1
Mot
or69
6,74
170
3,22
966
4,21
473
5,75
61,
357,
921
2,09
3,67
7-
2,09
3,67
71,
441,
749
Oth
ers
1,43
9,34
53,
231,
756
1,96
1,82
02,
709,
281
3,89
8,58
16,
607,
862
2,09
5,92
54,
511,
937
3,97
7,32
3
21,8
80,7
3623
,600
,999
20,9
29,3
5924
,552
,376
37,6
62,4
6062
,214
,836
15,2
97,3
9946
,917
,437
31,3
04,9
42
Cla
ss o
f Bus
ines
s
Openin
gC
losi
ng
June 3
0, 2
01
6Ju
ne 3
0, 2
01
5
Dir
ect a
nd fa
culta
tive
Fire
and
pro
pert
y da
mag
e8,
339,
160
11,4
56,0
0511
,107
,681
8,68
7,48
42,
629,
518
11,3
17,0
029,
375,
658
1,94
1,34
4
12,8
97,9
89
Mar
ine,
avi
atio
n an
d tr
ansp
ort
4,99
9,35
17,
745,
634
7,19
5,64
45,
549,
341
2,04
0,45
97,
589,
800
3,16
0,56
5
4,42
9,23
5
5,11
7,34
8
Mot
or49
3,20
572
6,87
666
4,21
455
5,86
7(2
25,3
43)
330,
524
-
330,
524
781,
247
Oth
ers
764,
901
3,20
3,67
51,
961,
820
2,00
6,75
62,
388,
753
4,39
5,50
91,
943,
054
2,45
2,45
5
3,36
6,89
7
Tota
l14
,596
,617
23,1
32,1
9020
,929
,359
16,7
99,4
486,
833,
387
23,6
32,8
3514
,479
,277
9,15
3,55
8
22,1
63,4
81
Not
e: C
omm
issi
on fr
om r
eins
urer
s is
arr
ived
at t
akin
g im
pact
of o
peni
ng a
nd c
losi
ng u
near
ned
com
mis
sion
.Th
e an
nexe
d no
tes
from
1 to
16
form
an
inte
gral
par
t of t
his
cond
ense
d in
teri
m fi
nanc
ial i
nfor
mat
ion.
Hal
f yea
r en
ded
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
---
(Rup
ees)
---
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
---
----
----
---(
Rupe
es)-
----
----
--
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
---
(Rup
ees)
---
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
---
----
----
---(
Rupe
es)-
----
----
--
Qua
rter
end
ed
Net
Und
erw
ritin
g Ex
pens
esU
nderw
riting
Exp
ense
s
Com
mis
sion
from
Rein
sure
rs
Com
mis
sion
Paid
or
Payable
Defe
rred
Com
mis
sion
Net
Exp
ense
s
Oth
er
Managem
ent
Exp
ense
s
Com
mis
sion
from
Rein
sure
rs
Net
Underw
riting
Exp
ense
s
Com
mis
sion
Paid
or
Payable
Defe
rred
Com
mis
sion
Net
Exp
ense
s
Oth
er
Managem
ent
Exp
ense
s
Underw
riting
Exp
ense
s
Dire
cto
r(A
the
r Za
ho
or)
Dire
cto
r(G
hu
lam
Mu
sta
fa)
Ch
ief Ex
ec
utive
/ P
rin
cip
al O
ffic
er
(Ch
. Za
ho
or
Ah
me
d)
Ch
airm
an
(Na
sir
Ali)
The Pakistan General Insurance Company Limited 15
Statement of Investment Income For the First Quarter Ended March 31, 2016
(Un-Audited)
Quarter ended
June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015
Income from non - trading investments
Available for saleDividend income 12,133
161,850
12,133
181,301Gain on disposal of available for sale investment 623,297
-
623,297
-
Held to maturityReturn on government securities 1,280,394 - 1,805,394Profit on bank deposits 3,735,091 7,024,181 7,099,431 14,705,869
Reversal / (Provision) for impairmentAvailable for sale investments 73,095 (378,200)
171,537
(276,543)
Investment related expenses (13,556) (10,196) (34,780)
(25,674)
Net investment income 4,430,060
8,078,029
7,871,618
16,390,347
The annexed notes from 1 to 16 form an integral part of this condensed interim financial information.
Half year ended
-----------Rupees----------------------Rupees-----------
Director(Ather Zahoor)
Director(Ghulam Mustafa)
Chief Executive / Principal Officer(Ch. Zahoor Ahmed)
Chairman(Nasir Ali)
Selected Explanatory Notes to the Condensed Interim Financial Information For Half Year and Quarter Ended June 30, 2016
(Un-Audited)
1 Status and nature of operations
2 Statement of compliance
3
4 Accounting policies
Un - audited Audited
June 30, 2016 Dec. 31, 2015
5 Issued, subscribed and paid-up share capital
20,000,000 fully paid ordinary shares of Rs. 10 each 200,000,000
200,000,00020,001,250 fully paid bonus shares of Rs. 10 each 200,012,500
200,012,500400,012,500
400,012,500
6 Surplus on revaluation of fixed assets
Balance at beginning of the period / year 9,586,146
9,853,609Less: Incremental depreciation transferred to un-appropriated profit (127,044)
(267,463)
Balance at end of the period / year 9,459,102 9,586,146
7 Contingencies and commitments
This condensed financial information does not include all the information and disclosures required in the complete set of financialstatements, and should be read in conjunction with the Company's annual financial statements for the year ended December 31, 2015.
--------------Rupees--------------
The Pakistan General Insurance Company Limited "the Company" was incorporated in Pakistan as a public limited company on July 26,1947 under the Companies Act, 1913 (now Companies Ordinance, 1984) and was listed on Pakistan Stock Exchange (formerly Karachi,Lahore and Islamabad Stock Exchanges) on July 25, 1995. The Company is engaged in providing General Insurance Services in spheresof Fire and property damage, Marine, aviation and transport, Motor and Miscellaneous in Pakistan. The registered office of the Companyis situated at Cooperative Bank House, 5 Bank Square, Lahore, Pakistan.
Accounting estimates and judgments
The preparation of these condensed interim financial statements are in conformity with approved accounting standards which requires themanagement to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts ofassets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these condensed interim financialinformation, the significant judgments made by management in applying the Company’s accounting policies and the key sources ofestimation uncertainty were the same as those that applied to the financial statements as at and for the year ended December 31, 2015.
There have been no significant changes in the contingencies and commitments as disclosed in the annual financial statements of theCompany for the year ended December 31, 2015.
The accounting policies and the methods of computation adopted in preparation of this condensed interim financial information are thesame as those applied in preparation of financial statements for the year ended December 31, 2015.
This condensed interim financial information of the Company for the six months period ended June 30, 2016 has been prepared inaccordance with the requirements of the International Accounting Standard 34 - Interim Financial Reporting and provisions of anddirectives issued under the Companies Ordinance, 1984, the Insurance Ordinance, 2000 and SEC (Insurance) Rules 2002. In caserequirements differ, the provisions of or directives issued under the Companies Ordinance, 1984, Insurance Ordinance, 2000 and SEC(Insurance) Rules, 2002 have been followed.
The Pakistan General Insurance Company Limited16
The Pakistan General Insurance Company Limited 17
Un - audited Audited
June 30, 2016 Dec. 31, 20158 Investments
Available for sale- Marketable securities 25,390,049 36,112,539 - Less: Fair value adjustments 1,025,118 1,196,655
24,364,931 34,915,884 24,364,931 34,915,884
9 Fixed assets
Book value at beginning of the period / year 98,346,717
97,386,955Additions during the period / year - note 9.1 -
9,074,471Disposal during the period / year -
(120,586)Depreciation charge for the period / year (3,843,688)
(7,994,123)Carrying amount at end of the period / year 94,503,029 98,346,717
9.1 Additions during the period / year
Furniture and fixtures -
22,370 Office equipment -
661,301 Vehicles -
8,390,800 -
9,074,471
Un - audited Un - audited
June 30, 2016 June 30, 2015
10 Underwriting activities
Premiums received 209,691,270 253,540,169Reinsurance premiums paid (18,728,489)
(79,807,410)
Claims paid (52,131,512)
(104,924,627)Reinsurance and other recoveries received 11,250
45,642,920
Commissions paid (21,880,736)
(24,897,858)
Commissions received 146,250
15,338,440Net cash from underwriting activities 117,108,033
104,891,634
11 Transactions with related parties
Remuneration paid to executives, directors and chief executive officer 1,702,275
1,768,651Contribution paid to provident fund 45,880 48,975
All transaction with related parties have been carried out on commercial term and conditions.12 Segment reporting
For the period ended
--------------Rupees--------------
The related parties comprise holding company, subsidiaries and associated undertakings, other related group companies, directors of theCompany, key management personnel and post employment benefit plans.
--------------Rupees--------------
Class of business wise revenue and results have been disclosed in the statement of premium and profit and loss account, respectively,prepared in accordance with the requirement of Insurance Ordinance, 2000 and the SEC (Insurance) Rules, 2002.
13 Earnings per share
13.1 Basic earning per share
June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015
Profit after tax for the period Rs. 2,911,031 17,041,683 15,972,704 26,039,162(re-stated) (re-stated)
Weighted average number of outstanding shares No. 40,001,250
40,001,250
40,001,250 40,001,250
Basic earning per share Rs. 0.07 0.43 0.40 0.65
Six months period ended Three months period ended
Basic earning per share are calculated by dividing the net profit for the period by weighted average number of shares as at theperiod end as follows:
Selected Explanatory Notes to the Condensed Interim Financial Information For Half Year and Quarter Ended June 30, 2016
(Un-Audited)
The Pakistan General Insurance Company Limited18
13.2 Diluted earnings per share
No figure for diluted earnings per share has been presented as the company has not issued any instrument which would have animpact on earnings per share when exercised.
14. Financial Instruements - fair values
The additional disclosures due to the adoption of IFRS 13 Fair value measurement are as follows:
Loans and
receivables
Other financial
liabilitiesTotal Level 1 Level 2 Level 3
On-balance sheet financial instruements Note
30 June 2016 (Un-audited)Financial assets measured at fair value
Investments - Available for sale
- - --
- -
-- -
-- -
Financial assets not measured at fair value 14.1
Cash and other equivalents 252,31124,364,931 24,364,931
-
-
252,311 -
-
-
-
-
-
Current and other accounts 42,185,448 -
42,185,448
-
- -Deposits maturing within 12 months 238,500,000 -
238,500,000
-
- -Deposits maturing after 12 months 40,858,423 -
40,858,423
-
- -Loans - unsecured; considered good 4,387,460 -
4,387,460
-
- -Premiums due but unpaid - unsecured 299,433,202 -
299,433,202
-
- -Amount due from other insurers / reinsurers 11,984,782 -
11,984,782
-
- -Accrued investment income 1,639,820 -
1,639,820
-
Reinsurance recoveries against outstanding claims 2,022,612 -
2,022,612
-
- -Sundry receivables 5,927,261 -
5,927,261
-
- -
671,556,250 671,556,250
-
-
- -
Financial liabilities measured at fair value -
-
-
- - -
Financial liabilities not measured at fair value 14.1Provision for outstanding claims (including IBNR) - 57,945,264 57,945,264Amounts due to other insurers / reinsurers - 31,386,024 31,386,024Accrued expenses - 649,105 649,105Other creditors - 20,393,820 20,393,820 - - -Unpresented dividend warrants - 405,316 405,316 - - -
- 110,779,529 110,779,529 - - -
14.1
Carrying Amount Fair Value
---------------------------------------------------Rupess---------------------------------------------------
15. Date of authorization of issue
16. General
Functional and presentation currency
Financial and insurance risk management
Re-classification and re-arrangements
This condensed interim financial information have been approved by the Board of Directors of the Company and authorized for issue on August 30, 2016.
These financial statements are presented in Pak Rupees, which is the Company's functional and presentation currency. All financial information presented in Pak Rupees has been rounded off to nearest Pak Rupee, unless otherwise stated.
The Company's financial insurance risk management objectives and policies are consistent with those disclosed in the annual financial statements as at and for the year ended December 31, 2015.
The corresponding figures are rearranged wherever necessary for the purpose of comparison and are rounded off to nearest rupee. Appropriate disclosure is given in relevant note in case of material rearrangements.
Director(Ather Zahoor)
Selected Explanatory Notes to the Condensed Interim Financial Information For Half Year and Quarter Ended June 30, 2016
(Un-Audited)
The investments have been valued at lower of cost or fair value as per requirement of insurance ordinance, 2000 and the SEC (Insurance) Rules, 2002. The management considers the carrying amount of all financial assets and liabilities not measured at fair value at the end of the reporting period to approximate their fair value as at thereporting date.
Director(Ghulam Mustafa)
Chief Executive / Principal Officer(Ch. Zahoor Ahmed)
Chairman(Nasir Ali)