Trasnmission of Quarterly Report for the period ended June 30, 2024

Aug 30, 2024 at 4:19 AM UTC · Issued by East West Insurance Co. Ltd.

DIRECTORS' REVIEW REPORT TO THE MEMBERS'

Your Directors are pleased to present their report together with un-audited Six months Financial Statements for the period ended June 30, 2024

The statistic covers the annexed Financial Statements of conventional general insurance and Window Takaful operation comprising:

0 Condnsed interim statement of financial position;

Condnsed interim statement of profit and loss account;

Condnsed interim statement of comprehensive income;

0 Condnsed interim statement of changes and equity;

0 Condnsed interim cash flow statement;

0 Notes to the condnsed interim financial information;

We are confident that this information would adequately apprise the valued shareholders about the performance of their Company.

The financial highlight of the company for the period ended June 30, 2024 is as follows:

	(Unaudited)
Result of operating activites	540,974,936
Profit before tax from Window Takaful Operations	51,085,024
Profit before tax
592,059,960
Income tax expenses	(163,742,251)
Profit after taxation
428,317,709
Other Comprehensive income	39,691,809
Total Comprehensive income
468,009,518

Unappropriated profit at beginning of the year	211,236,086
Profit for the period	428,317,709

Unappropriated at the end of the period	639,553,795


	June, 30 2024	June, 30 2023
	---------- (Unaudited) ----------
Gross premium	3,558,580,472		2,974,091,056

Net premium	1,900,933,377		1,835,105,576

Underwriting results	359,215,197		308,223,881
Investment income	309,763,729		153,770,082
Profit before tax (including Window Takaful Operations)	592,059,960		396,377,337
Profit after tax (including Window Takaful Operations)	428,317,709		297,123,823
Earnings per share - basic and diluted (Rupees)	2.12		1.47

On behalf of the Board of Directors

Naved Yunus

Chief Executive Officer

Karachi : August 29, 2024

INDEPENDENT AUDITOR'S REVIEW REPORT

TO THE MEMBERS OF EAST WEST INSURANCE COMPANY LIMITED REPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTS

Introduction

We have reviewed the accompanying condensed interim statement of financial position of East West Insurance Company Limited ("the Company") as at June 30, 2024 and related condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim statement of cash flows, condensed interim statement of changes in equity and notes to the condensed interim financial statements for the six-month period then ended (here-in-after referred as the 'condensed interim financial statements'). Management is responsible for the preparation and presentation of these 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. The figures of the condensed interim statement of comprehensive income for the three months period ended June 30, 2024 and related comprehensive information have not been reviewed and we do not express a conclusion on them.

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 condensed 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 condensed interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

The engagement partner on the review resulting in this independent auditor's review report is

Imran Shaikh.

Crowe Hussain Chaudhury & Co.

Chartered Accountants

Place: Karachi

Date: 29 August 2024

UDIN:

EAST WEST INSURANCE COMPANY LIMITED
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT JUNE 30, 2024
				June 30,		December 31,
		2024	2023
				(Unaudited)		(Audited)
ASSETS	Note			--------------Rupees--------------

Property and equipment	6	199,252,515	168,190,006
Right of use of assets	7	30,858,271	34,600,805
Intangible assets	8	805,395	823,112
Investment properties	9	44,624,546	45,768,765
Investments
Equity securities	10		2,440,432,179		2,402,112,393
Debt securities	11		1,334,316,093		708,378,427
Term deposit receipts (TDRs)	12		113,822,071		250,908,674
		3,888,570,343		3,361,399,494
Loans and other receivables	13	113,866,238	119,150,985
Insurance / reinsurance receivables	14	1,291,623,085	1,124,439,672
Reinsurance recoveries against outstanding claims	22	821,103,175	906,444,387
Deferred commission expense	23	364,814,516	322,829,742
Deferred tax assets		-	22,024,105
Prepayments	15	696,107,055	904,199,506
Cash and bank	16	225,536,769	88,029,986
			7,677,161,908		7,097,900,565
Total assets of window takaful operations
Operator's fund		431,928,592	332,157,085
TOTAL ASSETS			8,109,090,500		7,430,057,650
EQUITY AND LIABILITIES

Capital and reserves attributable to Company's equity holders
Issued, subscribed and paid-up capital		2,022,750,960	1,758,913,880
Reserves	17	1,131,233,742	1,091,541,933
Share Application money		-	263,837,080
Unappropriated profit		639,553,795	211,236,086
TOTAL EQUITY			3,793,538,497		3,325,528,979
LIABILITIES
Underwriting provisions
Outstanding claims including IBNR			1,164,506,480		1,281,908,861
Unearned premium reserves			1,656,252,853		1,455,648,347
Unearned reinsurance commission			128,895,661		257,690,967
		2,949,654,994		2,995,248,175
Retirement benefit obligations		2,699,880	1,888,734
Premium received in advance		93,459	1,095,857
Deposits and other payables	18	365,988,212	567,677,065
Lease liability against right of use of asset		40,242,344	41,081,855
Insurance / re-insurance payables		20,682,853	79,214,380
Other creditors and accruals	19	575,823,554	207,788,909
Deferred tax Liabilities		16,523,203	-
Taxation - net		204,193,247	115,088,486
TOTAL LIABILITIES			4,175,901,746		4,009,083,461
Total liabilities of window Takaful
Operations - Operator's Fund		139,650,257	95,445,210
TOTAL EQUITY AND LIABILITIES			8,109,090,500		7,430,057,650
CONTINGENCIES AND COMMITMENTS	20

The annexed notes form an integral part of these condensed interim financial information.

CHAIRMAN CHIEF EXECUTIVE OFFICER DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER

EAST WEST INSURANCE COMPANY LIMITED

CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UNAUDITED) FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 2024

	Six months period ended
	June 30,	June 30,
Note	2024	2023

Three months period ended

June 30, June 30,

20242023

Net insurance premium	21	1,900,933,377
Net insurance claims	22		(792,487,675)
Net commission	23		(458,144,215)
Insurance claims and
acquisition expenses		(1,250,631,890)
Management expenses	24	(291,086,290)
Underwriting results			359,215,197
Investment income	25	309,763,729
Other income	26	18,537,383
Other expenses	27	(142,065,675)
Finance cost	28	(4,475,698)
Results of operating
activities		540,974,936
Profit before tax from
window takaful operations	29	51,085,024
Profit before tax			592,059,960
Income tax expense		(163,742,251)
Profit after taxation			428,317,709
Earnings per share -

basic and diluted	30	2.12

1,835,105,576

(807,581,680)

(472,831,218)

(1,280,412,898)

(246,468,797)

308,223,881

153,770,082

9,533,947

(101,390,124)

(1,798,785)

368,339,001

28,038,336

396,377,337

(99,253,514)

297,123,823

(Restated)

1.47

972,754,747

(413,917,903)

(335,400,511)

(749,318,414)

(149,626,374)

73,809,959

194,770,253

12,777,421

(96,614,584)

(4,459,849)

180,283,200

25,496,763

205,779,963

(143,626,760)

62,153,203

0.31

937,293,258

(411,458,998)

(338,467,151)

(749,926,149)

(113,883,534)

73,483,575

104,252,695

7,881,271

(64,071,123)

(634,940)

120,911,478

15,197,607

136,109,085

(85,242,122)

50,866,963

(Restated)

0.25

The annexed notes form an integral part of these condensed interim financial information.

CHAIRMAN CHIEF EXECUTIVE OFFICER

DIRECTOR

CHIEF FINANCIAL OFFICER

EAST WEST INSURANCE COMPANY LIMITED

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 2024

	Six months period ended		Three months period ended
	June 30,	June 30,		June 30,	June 30,
	2024			2023	2024	2023
	-------------- Rupees	--------------		-------------Rupees-------------
Profit after taxation	428,317,709			297,123,823	62,153,203	50,866,963
Other comprehensive income
Items that may be reclassified
subsequently to profit and loss account
Reclassification of loss included in profit
and loss account	39,691,809			1,512,922	491,281	1,363,422
Total comprehensive income for the period	468,009,518			298,636,745	62,644,484	52,230,385

The annexed notes form an integral part of these condensed interim financial information.

CHAIRMAN CHIEF EXECUTIVE OFFICER

DIRECTOR DIRECTOR

CHIEF FINANCIAL OFFICER

EAST WEST INSURANCE COMPANY LIMITED

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 2024

	Share capital	Reserves				Share
	Issued		Unrealized gain			Unappropriated
			Total reserves		Apllication	Total
	subscribed and	General reserve	on available for		profit
			money
	paid-up		sale investment


	---------------------------------------------------			Rupees ---------------------------------------------------
Balance as at January 01, 2023	1,758,913,880	570,000,000	(89,489,974)	480,510,026	228,086,249	-	2,467,510,155
Total comprehensive income for the
period
Profit for the period	-	-	-	-	297,123,823	-	297,123,823
Other comprehensive income	-	-	1,512,922	1,512,922	-	-	1,512,922
	-	-	1,512,922	1,512,922	297,123,823		298,636,745

Balance as at June 30, 2023	1,758,913,880	570,000,000	(87,977,052)	482,022,948	525,210,072	-	2,766,146,900
Balance as at January 01, 2024
1,758,913,880	1,170,000,000	(78,458,067)	1,091,541,933	211,236,086	263,837,080	3,325,528,979
Total comprehensive income
for the period
Profit for the period	-	-	-	-	428,317,709	-	428,317,709
Other comprehensive income	-	-	39,691,809	39,691,809	-	-	39,691,809
	-	-	39,691,809	39,691,809	428,317,709	-	468,009,518
Issuance of shares other than
right	263,837,080	-	-	-	-	(263,837,080)	-

Balance as at June 30, 2024	2,022,750,960	1,170,000,000	(38,766,258)	1,131,233,742	639,553,795	-	3,793,538,497

The annexed notes form an integral part of these condensed interim financial information.

CHAIRMAN

CHIEF EXECUTIVE OFFICER

DIRECTOR

CHIEF FINANCIAL OFFICER

EAST WEST INSURANCE COMPANY LIMITED

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 2024

June 30,	June 30,
2024	2023
--------------	Rupees--------------

OPERATING CASH FLOWS

Underwriting activities Insurance premium received Reinsurance premium paid Claims paid
Reinsurance and other recoveries received Commission paid
Commission received

Underwriting payments

Net cash inflows from underwriting activities

Other operating activities Income tax paid

Other expenses paid

Other operating (payments)

Net cash used in other operating activities

Total cash generated / (used in) all operating activities

INVESTMENT ACTIVITIES Profit / return received Dividend received

Other income received Investments made

Proceeds from sale of investment Fixed capital expenditure

Proceeds from sale of property and equipment

Total cash (used in) / generated from all operating activities

FINANCING ACTIVITIES Loan received from director Lease rentals paid

Loan repaid to director Payment of financial charges

Total cash used in all financing activities Net cash generated from all activities

Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period

3,430,817,381

(1,347,763,037)

(1,648,420,637)

823,871,793

(725,411,667)

395,261,351

(309,980,832)

618,374,352

(74,637,490)

(107,399,239)

(14,787,446)

(196,824,175)

421,550,177

44,520,959

199,527,746

17,142,571

(880,659,181)

254,117,515

(50,175,003)

3,950,000

(411,575,393)

(5,197,063)

(4,357,541)

(9,554,604)

420,180

338,938,660

339,358,840

2,771,848,118

(1,112,432,643)

(1,217,242,714)

416,588,843

(750,694,102)

309,485,539

(210,628,042)

206,924,999

(32,057,648)

(75,858,224)

(265,532,914)

(373,448,786)

(166,523,787)

23,100,342

123,827,861

8,102,367

(350,723,634)

313,962,999

(42,524,702)

1,300,000

77,045,233

(3,911,703)

(260,000)

(4,171,703)

(93,650,257)

221,616,161

127,965,904

The annexed notes form an integral part of these condensed interim financial information.

CHAIRMAN CHIEF EXECUTIVE OFFICER DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER

EAST WEST INSURANCE COMPANY LIMITED

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 2024

	June 30,		June 30,
	2024	2023
	--------------Rupees--------------
Reconciliation to profit and loss account
Operating cash flows	421,550,177	(166,523,787)
Depreciation expense	(21,325,900)	(9,892,637)
Amortization of intangible	(17,717)	(25,310)
Profit on disposal of fixed assets	1,276,653	1,221,031
Investment income	44,520,959	23,100,342
Gain/(Loss) on disposal of investment securities	34,383,403	380,525
Dividend income	199,527,746	123,827,861
Other income	17,142,571	8,102,367
Gain on takaful operations	51,085,024	28,038,336
(Increase)/ decrease in assets other than cash	(429,665,956)	(750,414,935)
Increase/(decrease) in operating liabilities	109,840,749	1,039,310,030
Profit for the period	428,317,709		297,123,823

Definition of cash

Cash comprises of cash in hand, policy stamps in hand, bank balances and other deposits which are readily convertible to cash and which are used in the cash management function on a day-to-day basis.

Cash for the purpose of condensed statement of cash flows consist of:
	June 30,	June 30,
	2024		2023
	-------------- Rupees	--------------
Cash and other equivalents	313,632		207,631
Current and other accounts	225,223,137		116,758,273
Deposits maturing within 12 months	113,822,071		11,000,000
	339,358,840		127,965,904

The annexed notes form an integral part of these condensed interim financial information.

CHAIRMAN CHIEF EXECUTIVE OFFICER DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER

EAST WEST INSURANCE COMPANY LIMITED

NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UNAUDITED)

FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 2024

LEGAL STATUS AND NATURE OF BUSINESS
East West Insurance Company Limited (the Company) was incorporated as a public limited company in the year 1983 under the repealed Companies Act, 1913 (now Companies Act, 2017). The shares of the Company are quoted on the Pakistan Stock Exchange. The Company is engaged in the general insurance business comprising of fire and property, marine, aviation and transport, motor and miscellaneous etc. The company commenced Window Takaful Operations (WTO) from May 08, 2018 as per Securities and Exchange Commission of Pakistan (SECP) Takaful Rules, 2012.
GEOGRAPHICAL LOCATION AND ADDRESSES OF BUSINESS UNITS
The registered office of the Company is situated at 27, Regal Plaza, Jinnah Road, Quetta. The principal place of business is situated at Sarwar Shaheed Road, Lakson Square Building No. 03, 4th, Floor Karachi. The Company operates through 03 (2023: 03) principal offices and 25 (2023: 25) branches in Pakistan.
BASIS OF PREPARATION

3.1 Statement of compliance

These condensed interim financial information is unaudited but subject to the limited scope review by the auditors as required under Code of Corporate Governance for Insurers, 2016. These condensed interim financial information does not include all the information and disclosures required for full annual financial statements and should be read in conjunction with the annual financial statements of the Company as at and for the year ended December 31, 2023 which have been prepared in accordance with approved accounting standards as applicable to insurance companies in Pakistan.

These condensed interim financial information has been prepared in accordance with the accounting and reporting standard as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017: and
Provisions of and directives issued under the Companies Act, 2017 and Insurance Ordinance, 2000, Insurance Rules, 2017, Insurance Accounting Regulations, 2017 and Takaful Rules, 2012 and General Takaful Regulation, 2019.

Where the provisions of and directives issued under the Companies Act, 2017 and Insurance Ordinance, 2000, Insurance Rules, 2017, Insurance Accounting Regulations, 2017, Takaful Rules, 2012 and General Takaful Regulation, 2019 differ with the requirements of IAS 34, provisions of and directives issued under the Companies Act, 2017 and Insurance Ordinance, 2000, Insurance Rules, 2017, Insurance Accounting Regulations, 2017, Takaful Rules, 2012 and General Takaful Accounting Regulation, 2019, have been followed.

The Securities and Exchange Commission of Pakistan ("SECP") vide its S.R.O 89(1)/2017 dated February 9, 2017 has prescribed the format of the presentation of annual financial statements for the general insurance companies. These condensed interim financial information have been prepared in accordance with the format prescribed by the SECP.

The comparative statement of financial position presented in these condensed interim financial information has been extracted from the annual audited financial statements of the Company for the year ended December 31, 2023, whereas the comparative condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim statement of cash flows and condensed interim statement of changes in equity are extracted from the unaudited condensed interim financial information for the half year ended June 30, 2023.

In terms of the requirement of the Takaful Rules 2012, read with SECP circular 25 of 2015 dated July 9, 2015, the assets, liabilities and profit and loss of the Operator's fund of the General Takaful Operations of the Company have been presented as single line item in the condensed interim statement of financial position and condensed interim statement of profit and loss account of the Company respectively.

East West Insurance Company Limited

Basis of measurement
This condensed interim financial information has been prepared under the historical cost convention except for certain financial assets which are stated at fair value or amortized cost.
This condensed interim financial information has been prepared following accrual basis of accounting except for cash flow information.
Functional and presentation currency
This condensed interim financial information has been prepared and presented in Pakistan Rupees, which is the
Company's functional and presentation currency.

USE OF ESTIMATES AND JUDGMENTS
The preparation of condensed interim financial information in conformity with the requirements of approved accounting standards as applicable in Pakistan requires management to make judgments / estimates and associated assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The judgments / estimates and associated assumptions are based on historical experience, current trends and various other factors that are believed to be reasonable under the circumstances, the result of which form the basis of making the estimate about carrying values of assets and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
In preparing this condensed interim financial information, the significant judgments made by management in applying the Company's accounting policies and the key sources of estimating uncertainty were the same as those applied to the financial statements of the Company for the year ended December 31, 2023.
MATERIAL ACCOUNTING POLICIES
The accounting policies and the methods of computation adopted by the Company in the preparation of this condensed interim financial information are same as those applied in the preparation of the preceding annual audited financials statements for the year ended December 31, 2023.

5.1 Temporary Exemption from Application of IFRS 9

As an insurance company, the management has opted temporary exemption from the application of IFRS 9 as allowed by International Accounting Standards Board (IASB) for entities whose activities are predominantly connected with insurance. Additional disclosures, as required by the IASB, for the financial assets with contractual cash flows that meet the 'Solely for Payment of Principal and Interest' (SPPI) criteria excluding those held for trading and for the financial assets that do not meet the SPPI criteria for being eligible to apply the temporary exemption from the application of IFRS 9.

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