HALF YEARLY
REPORT
Half Year Ended June 30,
2024
(Un-Audited)
S E R V I N G
R E L I A B L Y
RELIANCE | |||||
Reliance Insurance | Window Takaful | ||||
Company Limited | |||||
Reliance Insurance Company Limited
CONTENTS
01 FINANCIALSTATEMENTS
- Company Information
- Directors' Review
04 Directors' Review in Urdu
05 Auditor's Review Report to the Members
- Condensed Interim Statement of Financial Position
- Condensed Interim Profit & Loss Account
- Condensed Interim Statement of Comprehensive Income
- Condensed Interim Statement of Changes in Equity
- Condensed Interim Statement of Cash Flow
- Notes to the Condensed Interim Financial Statements
02 RELIANCE WINDOW
TAKAFUL OPERATIONS
- Financial Statements Reliance Window Takaful Operations
- Auditor's Review Report to the Members
- Condensed Interim Statement of Financial Position
- Condensed Interim Profit & Loss Account
- Condensed Interim Statement of Comprehensive Income
- Condensed Interim Statement of Changes in Fund
- Condensed Interim Statement of Cash Flow
- Notes to the Condensed Interim Financial Statements
- Categories of Shareholding - Pattern of Shareholding
47 Offices
R TED | |||
'A+' | |||
(Outlook: 'Stable') | |||
By VIS & PACRA | |||
COMPANY | |||
INFORMATION | |||
Board Of Directors | Audit Committee | Credit Rating | |
Chairman | Tasneem Yusuf | Chairperson | A+ ( Single A+ ) By VIS & Pacra |
Irfan Zakaria Bawany | Irfan Zakaria Bawany | Member | Outlook "Stable" |
Directors | Muhammad Omar Bawany Member | Auditors | |
Muhammad Omar Bawany | Investment Committee | BDO Ebrahim & Co. | |
Ahmed Ali Bawany | Irfan Zakaria Bawany | Chairman | Chartered Accountants |
Noor M. Zakaria | Ahmed Ali Bawany | Member | Legal Advisor |
Zia Zakaria | Tasneem Yusuf | Member | |
Muhammad Patel | Muhammad Patel | Member | Irfan Advocate |
Naeem Ahmed Shafi | A. Razak Ahmed | Member | Shari'ah Advisor |
Tasneem Yusuf | Muhammad Salim Memon Secretary | ||
Jahangir Adam | Ethics, Human Resource & | Mufti Muhammad Farhan Farooq | |
Chief Executive & Managing Director | |||
Remuneration Committee | |||
A. Razak Ahmed | Naeem Ahmed Shafi | Chairman | |
Chief Financial Officer | Irfan Zakaria Bawany | Member | |
Noor M. Zakaria | Member | ||
Ghulam Haider | A. Razak Ahmed | Member | |
Company Secretary & Compliance Officer | |||
Faraz Abdul Razak | |||
Bankers | Registered Office | Shares Registrar | |
Habib Bank Limited | 96-a, Sindhi Muslim Co-operative | M/s. C&k Management | |
Mcb Bank Limited | Housing Society, Karachi. | Associates (Pvt.) Ltd. | |
Allied Bank Limited | 404-trade Tower, | ||
Soneri Bank Limited | Head Office | Abdullah Haroon Road, | |
Bank Alfalah Limited | Reliance Insurance House, 181-A, | Near Hotel Metropole, | |
National Bank Of Pakistan | Sindhi Muslim Co-operative Housing | Karachi-75530. | |
Meezan Bank Limited | Society, P .O. Box No. 13356, | Tel: (021) 35687839 & 35685930 | |
Dubai Islamic Bank | Karachi-74400. | ||
Mcb Islamic Bank Limited | Phone : 34539415-17 | ||
United Bank Limited | Fax : 92-21-34539412 | ||
The Bank Of Punjab | E-mail :reli-ins@cyber.net.pk | ||
Faysal Bank Limited | ric-re@cyber.net.pk | ||
Habib Metropolitan Bank Limited | Website: www.relianceins.com | ||
Js Bank Limited | |||
The Bank Of Khyber |
02
RELIANCE INSURANCE COMPANY LIMITED
DIRECTORS' REVIEW
The Shareholders,
Reliance Insurance Company Limited,
Your Directors are pleased to present before you the Half Yearly (Un-audited) Accounts for the period ended June 30, 2024.
During the period under review your Company underwrote gross premium of Rs.503.312 million inclusive of Takaful Contribution for Rs.62.743 million against Rs.438.284 million inclusive of Takaful Contribution for Rs.49.049 million of the corresponding period of the previous year, an increase of 14.83%.
Net claims incurred increased from Rs.60.272 million to Rs.66.883 million compared to corresponding period of last year, underwriting prot increased from Rs.44.562 million to Rs.55.313 million of previous year, showing an increase of Rs.10.751 million.
Investment income for the six-month period saw a remarkable growth, touching Rs.211.220 million, signicantly up from Rs.47.874 million in the previous year. This impressive increase in investment income is attributed to enhanced earnings from dividends, income from debt securities, deposits as well as both realized and unrealized gains on investments. The Pakistan Stock Exchange index rose from 62,451.04 points on December 31, 2023, to 78,444.96 points on June 30, 2024, contributing to the heightened realized and unrealized gains. The unrealized gains for the current period amounted to Rs.98.610 million, in sharp contrast to the unrealized loss of Rs.17.362 million during the corresponding period of last year.
Prot before tax stood at Rs.251.283 million compared to the prot before tax of Rs.76.892 million for the corresponding period of the previous year - an increase of 226.79%. Earnings per share (EPS) stood at Rs.3.12 against Re.0.65 of corresponding period of last year. There is also a prot of Rs.20.118 million before tax from Window Takaful Operators Funds. Accumulated surplus from participant Takaful Fund stood at Rs.88.085 million for the period under review.
Future Outlook:
The current economic environment in Pakistan presents signicant challenges, particularly in light of the ongoing high-interest-rate regime, persistent ination, rising costs of energy, food, and petroleum products coupled with political turmoil creating a complex landscape for business development.
However, despite these hurdles and challenges, the management remains resolute in its commitment to navigate effectively. We believe that our team's dedication and strategic approach will enable us to continue improving our performance. Our focus will remain on optimizing our operations, managing risks prudently, and leveraging opportunities that arise. We are condent that with perseverance and strategic initiatives, we can deliver positive results and continue to build on our solid foundation.
By order of the Board | |
A. RAZAK AHMED | |
Karachi: 29th August, 2024 | Chief Executive & Managing Director |
HALF YEARLY REPORT JUNE 2024
03
2024 �ا 29 |
04 RELIANCE INSURANCE COMPANY LIMITED |
INDEPENDENT AUDITORS' REPORT ON REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS TO THE MEMBERS OF RELIANCE INSURANCE COMPANY LIMITED
Introduction
We have reviewed the accompanying condensed interim statement of nancial position of Reliance Insurance Company Limited ("the Company") as at June 30, 2024 and the related condensed interim prot and loss account, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, condensed interim cash ow statement, and notes to the accounts for the six month period then ended (here-in-after referred as the "interim nancial statements"). Management is responsible for the preparation and presentation of this interim nancial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim nancial reporting. Our responsibility is to express a conclusion on these interim nancial statements 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 nancial statements consists of making inquiries, primarily of persons responsible for nancial 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 signicant matters that might be identied 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 nancial statements is not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim nancial reporting.
Other matter
The gures of condensed interim prot and loss account and condensed interim statement of comprehensive income for the three month period ended June 30, 2024 and June 30, 2023 have not been reviewed, as we are required to review only the cumulative gures for the six month period ended June 30, 2024.
The engagement partner on the review resulting in this independent auditor's review report is Zulkar Ali Causer.
KARACHI | |
DATED: 29th August, 2024 | BDO EBRAHIM & CO. |
UDIN: RR202410067P9SyztcdU | CHARTERED ACCOUNTANTS |
HALF YEARLY REPORT JUNE 2024
05
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT JUNE 30, 2024
Note |
ASSETS |
(Un-audited) | (Audited) |
June 30, | December 31, |
2024 | 2023 |
Rupees
Property and equipment | 6 |
Investments | |
Equity securities | 7 |
Debt securities | 8 |
Term deposits | 9 |
Loan and other receivables | 10 |
Insurance / reinsurance receivables | 11 |
Reinsurance recoveries against outstanding claims | 19 |
Deferred commission expense | 20 |
Prepayments | 13 |
Cash and bank balances | 14 |
Total assets window takaful operator's fund | |
TOTAL ASSETS | |
EQUITY AND LIABILITIES | |
Capital and reserves attributable to Company's equity holder | |
Ordinary share capital | 15 |
General reserves | |
Unappropriated prot | |
Unrealised gain on revaluation of available for sale investment | |
TOTAL EQUITY | |
LIABILITIES | |
Underwriting provisions | |
Outstanding claims including IBNR | 19 |
Unearned premium reserves | 18 |
Unearned reinsurance commission | 20 |
Insurance / reinsurance payables | |
Other creditors and accruals | 16 |
Deferred taxation | 12 |
Taxation - provision less payments | |
Total liabilities window takaful - operation's fund | |
TOTAL LIABILITIES | |
TOTAL EQUITY AND LIABILITIES | |
CONTINGENCIES AND COMMITMENTS | 17 |
103,513,714
952,504,451
70,086,743
43,165,682
1,065,756,876
4,608,964
595,660,022
233,525,015
79,337,702
177,064,636
99,894,116
2,359,361,045
168,233,730
2,527,594,775
665,379,490
400,000,000
275,964,577
50,064,126
1,391,408,193
306,423,922
394,152,204
32,996,988
733,573,114
196,643,473
87,166,367
41,184,120
44,511,451
1,103,078,525
33,108,057
1,136,186,582
2,527,594,775
87,159,556
839,874,670
70,092,591
42,628,618
952,595,879
5,135,425
537,186,737
176,420,765
95,312,664
194,268,623
108,555,276
2,156,634,925
155,881,702
2,312,516,627
665,379,490
310,000,000
225,049,587
21,992,211
1,222,421,288
230,153,423
440,170,615
39,285,465
709,609,503
216,603,821
76,108,264
30,143,866
22,637,371
1,055,102,825
34,992,514
1,090,095,339
2,312,516,627
The annexed notes from 1 to 30 form an integral part of these condensed interim nancial statements.
Irfan Zakaria Bawany | Mohammad Omar Bawany | Noor M. Zakaria | Ghulam Haider | A. Razak Ahmed |
Chairman | Director | Director | Chief Financial Ofcer | Chief Executive & Managing Director |
Karachi: 29th August, 2024
06
RELIANCE INSURANCE COMPANY LIMITED
CONDENSED INTERIM PROFIT & LOSS ACCOUNT (UN AUDITED)
FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 2024
Three month period ended June 30, | Six month period ended June 30, | |||||||||
Note | 2024 | 2023 | 2024 | 2023 | ||||||
(Rupees) | ||||||||||
Net insurance premium | 18 | 146,080,407 | 112,533,183 | 271,224,019 | 230,109,730 |
Net insurance claims | 19 |
Net commission | 20 |
Insurance claims and acquisition expenses | |
Management expenses | |
Underwriting results | |
Investment income | 21 |
Other income | |
Other expenses |
Results of operating activities
Prot from takaful operations-operator's fund
Prot before taxation
Taxation
Current taxation
Deferred taxation
Prot after taxation
(38,161,559)
(30,473,528)
(68,635,087)
(48,337,523)
29,107,797
133,732,675
-
(22,746,264)
110,986,411
140,094,208
10,441,743
150,535,951
(27,218,676)
(14,986,751)
(42,205,427)
108,330,524
(26,471,423)
(25,453,185)
(51,924,608)
(41,861,293)
18,747,282
29,198,485
926,020
(18,565,815)
11,558,690
30,305,972
7,396,288
37,702,260
(12,347,393)
2,283,737
(10,063,656)
27,638,604
(66,882,781)
(60,377,088)
(127,259,869)
(88,650,714)
55,313,436
211,219,537
2,590,646
(37,958,330)
175,851,853
231,165,289
20,117,843
251,283,132
(44,275,204)
445,011
(43,830,193)
207,452,939
(60,271,989)
(49,058,091)
(109,330,080)
(76,217,615)
44,562,035
47,873,719
2,288,897
(31,315,720)
18,846,896
63,408,931
13,483,084
76,892,015
(27,333,684)
(6,091,506)
(33,425,190)
43,466,825
Earnings after tax per share | 1.63 | 0.42 | 3.12 | 0.65 | |||
The annexed notes from 1 to 30 form an integral part of these condensed interim nancial statements.
Irfan Zakaria Bawany | Mohammad Omar Bawany | Noor M. Zakaria | Ghulam Haider | A. Razak Ahmed |
Chairman | Director | Director | Chief Financial Ofcer | Chief Executive & Managing Director |
Karachi: 29th August, 2024
HALF YEARLY REPORT JUNE 2024
07
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN AUDITED)
FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 2024
Three month period ended June 30, Six month period ended June 30,
Note |
2024 2023 2024 2023
(Rupees)
Prot after taxation | |
Other comprehensive income / (loss) | |
Unrealised gain / (loss) on revaluation | |
of available for sale investments | |
Reclassication adjustment related | |
to gain on disposal / redemption of | |
available for sale investments | |
Unrealised gain / loss from window takaful | |
operations Operator's Fund | |
Impact of related deferred taxation | 12 |
Other comprehensive income / (loss) |
108,330,524
26,689,639
(8,131,272)
5,100
(5,381,925)
13,181,542
27,638,604
(2,255,959)
-
-
654,229
(1,601,730)
207,452,939
47,228,043
(7,623,679)
(47,184)
(11,485,265)
28,071,915
43,466,825
(1,049,053)
-
-
304,225
(744,829)
Total comprehensive income for the period | 121,512,066 | 26,036,873 235,524,854 | 42,721,997 | ||||
The annexed notes from 1 to 30 form an integral part of these condensed interim nancial statements.
Irfan Zakaria Bawany | Mohammad Omar Bawany | Noor M. Zakaria | Ghulam Haider | A. Razak Ahmed |
Chairman | Director | Director | Chief Financial Ofcer | Chief Executive & Managing Director |
Karachi: 29th August, 2024
08
RELIANCE INSURANCE COMPANY LIMITED
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY ( UN AUDITED)
FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 2024
Share capital
General reserves
Unrealised gain / (loss) on revaluation of AFS investments
Unappropriated prot / (Accumulated)
Total
Balance as at January 01, 2024 (Audited)
Transfer to general reserves
Transfer to General reserve
Issuance of bonus shares
Payment of cash dividend
Total comprehensive income for the six month period ended June 30, 2024
Prot after taxation
Other comprehensive income
Balance as at June 30, 2024
(Rupees)
665,379,490 310,000,000 21,992,211
90,000,000
- | - | - | |||
- | - | 28,071,915 | |||
- | - | 28,071,915 | |||
665,379,490 | 400,000,000 | 50,064,126 | |||
225,049,587 1,222,421,288
-
(90,000,000)
-
(66,537,949) (66,537,949)
207,452,939 207,452,939
-
28,071,915
207,452,939 235,524,854
275,964,577 1,391,408,193
Balance as at January 01, 2023 (Audited)
Transfer to general reserves
Transations with owners:
Issuance of bonus shares
Cash dividend
Total comprehensive income/(loss) for the six month period ended June 30, 2023
Prot after tax
Other comprehensive income
Balance as at June 30, 2023
633,694,750 290,000,000
20,000,000
31,684,740
- | - |
- | - |
- | - |
665,379,490 310,000,000
49,196 | 136,521,419 | 1,060,265,365 | ||
(20,000,000) | - | |||
(31,684,740) | - | |||
(31,684,738) | (31,684,738) | |||
- | 43,466,825 | 43,466,825 | ||
(744,829) | - | (744,829) | ||
(744,829) | 43,466,825 | 42,721,996 | ||
(695,633) | 96,618,766 | 1,102,987,361 | ||
The annexed notes from 1 to 30 form an integral part of these condensed interim nancial statements.
Irfan Zakaria Bawany | Mohammad Omar Bawany | Noor M. Zakaria | Ghulam Haider | A. Razak Ahmed |
Chairman | Director | Director | Chief Financial Ofcer | Chief Executive & Managing Director |
Karachi: 29th August, 2024
HALF YEARLY REPORT JUNE 2024
09
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