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www.spiinsurance.com.pk
Quarterly Report | for the nine months ended September 30, 2013
GROWING VALUES
Head Office:1st Floor, UIG House, 6 - D, Upper Mall, Lahore. T: (92-42) 35776561-62-67-68, 35756563F: (92-42) 35776560E: [email protected]
Concept, Design & Printed by: Al-Imran www.alimranprinters.com
(formerly Saudi Pak Insurance Company Limited)
Contents
What isinside?
Business review
Governance
Financial Statements
Company Information
Directors’ Report to the Members
Balance Sheet
Profit and Loss Account
Statement of Cash Flows
Statement of Comprehensive Income
Statement of Changes in Equity
Statement of Premiums
Statement of Claims
Statement of Expenses
Statement of Investment Income
Notes to the Financial Statements
2
5
8
10
12
14
15
16
18
20
22
23
2 SPI Insurance Company Limited(formerly Saudi Pak Insurance Company Limited)
Audit Committee
Mr. Jameel A. Khan (Chairman)
Mr. Abdul Majeed (Member)
Sheikh Aftab Ahmed (Member)
Chief Internal Auditor
Mian Mohsin Aslam
Auditors
M/s Avais Hyder Liaquat Nauman
Chartered Accountants
Tax Consultant
M/s Muhammad Bilal & Company
Chartered Accountants
Registered Office
Suite # 204-A, Second Floor,
Madina City Mall, Abdullah Haroon Road,
Karachi.
Phone # (021) 37010190,
Fax # (021) 37010191
Head Office
1st Floor, UIG House,
6 - D, Upper Mall
Lahore.
Phone # (042) 35776561-62-67-68, 35756563
Fax # (042) 35776560
E-mail: [email protected]
Website: www.spiinsurance.com.pk
Company Information
Chairman
Mr. Aziz Ullah Memon
Managing Director & Chief Executive
Mian M. A. Shahid
Directors
Ms. Parveen Akhter Malik
Mr. Adnan Afridi
Mr. Abdul Majeed
Sheikh Aftab Ahmed
Mr. Jameel A. Khan
Chief Financial Officer
Mr. Naeem Tariq
Company Secretary
Mr. Noshad Ahmed
Legal Advisors
M/s Mandviwalla & Zafar
M/s Zeeshan Abdullah Associates
M/s M. A. Hamdani Law Associates
Human Resources Committee
Ms. Parveen Akhter Malik (Chairperson)
Mr. Jameel A. Khan (Member)
Mian M. A. Shahid (Member)
Risk Management Committee
Mr. Adnan Afridi (Chairman)
Mian M. A. Shahid (Member)
Ms. Parveen Akhter Malik (Member)
Quarterly Report | for the nine months ended September 30, 2013 3
Key Management Personnel
Managing Director & Chief Executive Officer Mian M. A. Shahid
Deputy Managing Director Mr. Shaheryar Akbar Raja
Advisors Mr. Naseer Ahmed(Former Member Revenue CBR)
(Former Additional Secretary Military Finance)
(Former Additional Secretary Finance)
General Manager Admin Mr. Jamil Ahmed
Chief Manager Underwriting Mr. Imtiaz Ali
General Manager Health Mr. Muneer Khan
Chief Manager Claims Mr. Khalid Nazeer Bajwa
Manager Claims Non Motor Mr. Naveed ul Haq Nomani
Chief Manager Re-Insurance Mr. Faisal Akbar (FCA)
Manager I.T Mr. Munir Ahmed
Manager Accounts Muhammad Saleem Akhtar (FCMA)
4 SPI Insurance Company Limited(formerly Saudi Pak Insurance Company Limited)
Company Information
Bankers Apna Microfinance Bank Limited
Bank Al-Falah Limited
Bank Al-Falah Limited-Islamic
Bank Al-Habib Limited
Habib Bank Limited
HSBC Bank Limited
KASB Bank Limited
National Bank of Pakistan
NIB Bank Limited
SILKBANK Limited
Sindh Bank Limited
Soneri Bank Limited
Standard Chartered Bank Limited
State Bank of Pakistan
Tameer Microfinance Bank Limited
The Bank Of Punjab
United Bank Limited
Quarterly Report | for the nine months ended September 30, 2013 5
Directors’ Review to the Members
Dear Fellow Members!
The directors of ‘’SPI Insurance Company Limited’’ are pleased to submit the review report of the company together with the un-audited financial statement for the nine months ended September 30, 2013.
Sep 30, Sep 30,2013 2012(Rupees in thousands)
The overall business figures are:Premium written 283,473 246,438Net Premium 210,948 143,022Net Claims 82,124 36,483Investment income 8,914 7,255Net Commission 23,859 10,340Expenses of Management 61,165 67,119Underwriting Result 43,798 31,078Profit / (Loss) before tax 22,681 27,023Less: Provision for taxation 8,993 1,430Profit / (Loss) after tax 13,688 25,593E.P.S 0.42 0.79
Keeping in view the challenging economic conditions of the country the company performed well during the period under review. The gross premium stands at Rs. 283.473 million as against RS. 246.438 million as compared to corresponding period of last year, and attained 15.03% increase in premium. The net premium of Rs. 210.948 million posted as against Rs. 143.022 million during the same period of last year with an increase of 43.49%.The underwriting results stands at Rs. 43.798 million as against Rs. 31.078 million during the same period of last year.
The investment income for the nine months ended September 30, 2013 is Rs. 8.914 million, as against Rs 7.255 million for the corresponding period of the last year. The profit before tax is posted at Rs. 22.681 million against Rs 27.023 million during pervious period of last year.
The cash and bank deposit stood at Rs.60.824 million and investment at Rs. 121.972 million respectively as against Rs. 55.191 million and Rs 92.951 million for the period ended on September 30, 2012. Profit after tax for the nine months ended September 30, 2013 has however declined to Rs.13.688 million from 25.593 million during the same period of last year mainly owing to payment of huge claims and incidence of additional taxes.
Change of Company’s name:
The name of Saudi Pak Insurance Company Limited has been changed to SPI Insurance Company Limited w.e.f September 27, 2013 after due approval from Securities and Exchange Commission of Pakistan.
Future outlook:
While realizing that there will be further challenges in the coming period, the spirit to strive hard and achieve against odds makes us believe that in the coming period we will be able to maintain the desired growth and the overall performance for the year 2013 will be more significant and stable.
6 SPI Insurance Company Limited(formerly Saudi Pak Insurance Company Limited)
Acknowledgement:
We appreciate and extend our gratitude to valued customers, employees and development staff for their continued support for the success of SPI Insurance Company Limited. We are also grateful to Securities and Exchange Commission of Pakistan (Insurance Division) for their professional guidance and assistance.
For and on behalf of the Board
Aziz Ullah Memon
Karachi: October 29, 2013 Chairman
Financial StatementFor The Nine Months Ended September 30, 2013
8 SPI Insurance Company Limited(formerly Saudi Pak Insurance Company Limited)
Unaudited AuditedSeptember 30, December 31,
Note 2013 2012Rupees Rupees
Share capital and reserves
Authorized share capital 5 500,000,000 500,000,000
Paid-up share capital 5 325,000,000 325,000,000 Accumulated loss (53,822,918) (67,510,963)Total equity 271,177,082 257,489,037
Underwriting provisions
Provision for outstanding claims (including IBNR) 78,342,210 80,911,792 Provision for unearned premium 151,095,418 145,874,535 Additional provision for unexpired risks 6,741,166 6,741,166 Commission income unearned 292,459 12,250,183 Total underwriting provisions 236,471,253 245,777,676
Deferred Liabilities
Staff retirement gratuity 3,598,366 2,294,644
Creditors and accruals
Premium received in advance 589,605 1,660,784 Amounts due to other insurers/reinsurers 12,761,227 7,576,658 Accrued expenses 6 7,446,281 6,790,489 Other creditors and accruals 7 8,495,816 8,235,495
29,292,929 24,263,426 TOTAL LIABILITIES 269,362,548 272,335,746
TOTAL EQUITY AND LIABILITIES 540,539,630 529,824,783
CONTINGENCIES AND COMMITMENTS 8 - -
The annexed notes form an integral part of these condensed interim financial statements.
Condensed Interim Balance Sheet (Un-Audited)AS AT SEPTEMBER 30, 2013
Aziz Ullah Memon Chairman
Mian M.A. ShahidChief Executive Officer
Quarterly Report | for the nine months ended September 30, 2013 9
Unaudited AuditedSeptember 30, December 31,
Note 2013 2012Rupees Rupees
Cash & bank deposits
Cash and other equivalents 971,803 918,117 Current and other accounts 58,832,967 28,434,551 Deposits maturing within 12 months 930,000 40,966,000 Cash with State Bank of Pakistan 89,639 89,639
60,824,409 70,408,307
LOANS TO EMPLOYEES 1,508,286 501,116 Investments 9 121,972,489 93,659,604Deferred Tax Asset 44,065,199 52,003,623
CURRENT ASSETS - OTHERSPremium due but unpaid 10 57,884,798 48,702,076 Amount due from other insurers/reinsurers 11 89,903,210 45,544,938 Prepaid reinsurance premium ceded 22,568,203 49,466,557 Accrued investment income 1,699,561 3,758,916 Reinsurance recoveries against outstanding claims 50,320,291 71,288,878 Taxation-payment less provision 4,951,478 4,541,771 Deferred commission expense 17,900,606 20,759,255 Prepayments 7,826,314 5,801,962 Sundry receivables 6,556,464 6,777,826
259,610,925 256,642,179 FIXED ASSETS
Tangible
Office improvements 9,642,936 10,330,878 Furniture and fixtures 2,979,613 2,892,391 Office equipment 4,781,704 4,645,249 Computer equipment 2,213,335 2,124,800 Motor vehicles 32,721,559 36,361,369
52,339,147 56,354,687 Intangible Computer software 219,175 255,267 TOTAL ASSETS 540,539,630 529,824,783
Condensed Interim Balance Sheet (Un-Audited)AS AT SEPTEMBER 30, 2013
Jameel A. KhanDirector
Parveen Akhter MalikDirector
10 SPI Insurance Company Limited(formerly Saudi Pak Insurance Company Limited)
Condensed Interim Profit And Loss Account (Un-Audited)For The Nine Months Ended September 30, 2013
Quarter September 30, 2013
NoteFire and Property Damage
Marine, Aviation and
TransportMotor Miscellaneous
Quarter ended September 30,
2013Aggregate
Quarter ended September 30,
2012Aggregate
……………………………………………...Rupees…………………………………………..
Revenue account
Net premium revenue 14,703,227 5,916,721 38,395,693 21,167,257 80,182,899 59,394,376 Net claims (4,536,264) (464,844) (17,994,045) (12,158,970) (35,154,123) (13,191,563)
Premium deficiency reversal - - - - - -
Management expenses (7,699,897) (2,158,001) (8,014,487) (4,168,273) (22,040,658) (26,883,626)
Net commission (196,867) (1,426,937) (3,493,619) (2,152,741) (7,270,164) (4,889,033)
Underwriting results 2,270,198 1,866,939 8,893,543 2,687,273 15,717,954 14,430,155
Investment income 3,204,069 2,595,825
Other income 21,566 20,224
General & administration
expenses (12,590,417) (4,744,169)
Profit/ (loss) before tax 6,353,172 12,302,035
Less : Taxation
Current (400,914) (593,944)
Deferred (2,223,610) -
(2,624,525) (593,944)
Profit/ (loss) after Tax 3,728,647 11,708,091
Basic earning per share 0.11 0.36
Jameel A. KhanDirector
Parveen Akhter MalikDirector
Aziz Ullah Memon Chairman
Mian M.A. ShahidChief Executive Officer
Quarterly Report | for the nine months ended September 30, 2013 11
Condensed Interim Profit And Loss Account (Un-Audited)For The Nine Months Ended September 30, 2013
Nine months ended September 30, 2013
NoteFire and Property Damage
Marine, Aviation and
TransportMotor Miscellaneous
Nine months ended
September 30, 2013 Aggregate
Nine months ended
September 30, 2012 Aggregate
……………………………………………...Rupees…………………………………………..
Revenue accountNet premium revenue 51,820,632 15,338,047 95,348,194 48,441,689 210,948,562 143,022,120
Net claims (16,241,605) (4,863,296) (36,214,899) (24,804,419) (82,124,219) (36,483,287)
Premium deficiency reversal - - - - - 2,000,656
Management expenses (18,234,926) (5,065,989) (22,027,310) (15,837,589) (61,165,813) (67,119,950)
Net commission (7,245,388) (3,937,676) (8,480,828) (4,195,925) (23,859,817) (10,340,738)
Underwriting results 10,098,713 1,471,087 28,625,158 3,603,756 43,798,713 31,078,801
Investment income 8,914,524 7,255,905
Other income 47,278 643,748
General & administration expenses (30,079,303) (11,954,697)
Profit/ (loss) before tax 22,681,212 27,023,757
Less : Taxation 13
Current (1,054,743) (1,430,221)
Deferred (7,938,424) -
(8,993,167) (1,430,221)
Profit/ (loss) after Tax 13,688,045 25,593,536
Profit and loss appropriation account
Balance at commencement of period (67,510,963) (142,455,661)
Profit after tax for the period 13,688,045 25,593,536
Profit available for appropriation (53,822,918) (116,862,125)
Balance un-appropriated profit / (loss) at end of period (53,822,918) (116,862,125)
Basic earning per share 0.42 0.79
The annexed notes form an integral part of these condensed interim financial statements.
12 SPI Insurance Company Limited(formerly Saudi Pak Insurance Company Limited)
Condensed Interim Cash Flow Statement (Un-Audited)For The Nine Months Ended September 30, 2013
September 30, September 30, 2013 2012
Rupees Rupees
Operating cash flows:
a) Underwriting activities:
Premiums received 273,219,664 244,679,345
Reinsurance premiums paid (35,221,197) (84,938,117)
Claims paid (115,022,881) (97,529,297)
Reinsurance and other recoveries received 6,939,395 38,501,093
Commission paid (33,442,919) (34,050,042)
Commission received 484,027 21,381,929
Other underwriting payments (53,842,881) (62,365,556)
Net cash flow from underwriting activities 43,113,208 25,679,355
b) Other operating activities:
Income tax paid (1,464,449) (1,479,346)
General and management expenses paid (30,079,303) (11,954,697)
Other operating payments (1,802,989) (2,147,139)
Other operating receipts 916,113 400,597
Loans and advances paid (1,007,170) (217,707)
Net cash outflow from other operating activities (33,437,798) (15,398,292)
Total cash flow from operating activities 9,675,410 10,281,063
Investment activities:
Profit/ return received 10,951,454 7,305,576
Dividend received 22,425 17,850
Payments for investments (28,312,885) (10,609,048)
Proceeds from disposal of investments - 16,983,756
Fixed capital expenditure (1,920,302) (31,773,730)
Total cash flow from investing activities (19,259,309) (18,075,596)
Net cash inflow / (outflow) from all activities (9,583,898) (7,794,533)
Cash and cash equivalents at beginning of the period 70,408,307 62,986,038
Cash and cash equivalents at end of the period 60,824,409 55,191,505
Jameel A. KhanDirector
Parveen Akhter MalikDirector
Aziz Ullah Memon Chairman
Mian M.A. ShahidChief Executive Officer
Quarterly Report | for the nine months ended September 30, 2013 13
Condensed Interim Cash Flow Statement (Un-Audited)For The Nine Months Ended September 30, 2013
September 30, September 30, 2013 2012
Rupees Rupees
Reconciliation to Profit and Loss Account
Operating cash flows 9,675,410 10,281,063
Depreciation / amortisation expense (5,971,932) (4,077,464)
Investment and other income 8,892,099 7,949,324
Provision for doubtful debts (3,127,637) (495,994)
Dividend income 22,425 17,850
(Decrease) / increase in assets other than cash 10,217,651 17,595,872
Decrease / (Increase) in liabilities other than running finance 2,973,198 (5,677,116)
Reversal/ (Provision) for taxation (8,993,167) -
Profit/(loss) after Taxation 13,688,047 25,593,535
Definition of cash
Cash comprises of cash in hand, policy stamps and bank balances which are readily convertible to cash in hand and which are use d in the cash management function on a day to day basis.
Cash for the purpose of statement of cash flows consists of :
Cash and cash equivalents
Cash and other equivalents 971,803 524,550
Current and saving accounts 58,832,967 14,330,272
Deposits maturing within 3 months 930,000 39,966,000
Cash with State Bank of Pakistan 89,639 370,683
60,824,409 55,191,505
The annexed notes form an integral part of these condensed interim financial statements.
Jameel A. KhanDirector
Parveen Akhter MalikDirector
Aziz Ullah Memon Chairman
Mian M.A. ShahidChief Executive Officer
14 SPI Insurance Company Limited(formerly Saudi Pak Insurance Company Limited)
Condensed Interim Statement Of Comprehensive Income (Un-Audited)For The Nine Months Ended September 30, 2013
Quarter ended Nine months endedSeptember 30, 2013
September 30, 2012
September 30, 2013
September 30, 2012
…………………………...Rupees……………………………
Profit/ (loss) for the period 5,405,629 10,207,196 9,959,397 13,885,446
Other comprehensive income - - - -
Total comprehensive profit / (loss) for the period 3,728,647 11,708,091 13,688,045 25,593,536
The annexed notes form an integral part of these condensed interim financial statements.
Jameel A. KhanDirector
Parveen Akhter MalikDirector
Aziz Ullah Memon Chairman
Mian M.A. ShahidChief Executive Officer
Quarterly Report | for the nine months ended September 30, 2013 15
Condensed Interim Statement Of Changes In Equity (Un-Audited)For The Nine Months Ended September 30, 2013
Description Share capital ACCUMULATED LOSS TOTAL
……………………………..RUPEES…………………………….
Balance as at January 01, 2012 325,000,000 (142,455,661) 182,544,339
Net profit for the period - 25,593,536 25,593,536
Balance as at September 30, 2012 325,000,000 (116,862,125) 208,137,875
Balance as at January 01, 2013 325,000,000 (67,510,963) 257,489,037
Net profit for the period - 13,688,045 13,688,045
Balance as at September 30, 2013 325,000,000 (53,822,918) 271,177,082
The annexed notes form an integral part of these condensed interim financial statements.
16 SPI Insurance Company Limited(formerly Saudi Pak Insurance Company Limited)
Con
dens
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terim
Sta
tem
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of P
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Quarterly Report | for the nine months ended September 30, 2013 17
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.A. S
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Exe
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18 SPI Insurance Company Limited(formerly Saudi Pak Insurance Company Limited)
Con
dens
ed In
terim
Sta
tem
ent
of C
laim
s (U
n-Au
dite
d)Fo
r The
Nin
e M
onth
s En
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Sep
tem
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0, 2
013
Qua
rter
end
ed S
epte
mbe
r 30
, 20
13Q
uart
er e
nded
S
epte
mbe
r, 30
20
12
Busi
ness
Und
erw
ritte
n In
side
Pak
ista
n
Cla
ssC
laim
s pa
id
Out
stan
ding
cla
ims
Cla
ims
exp
ense
Rein
sura
nce
an
d ot
her
reco
verie
s re
ceiv
ed
Rein
sura
nce
and
othe
r re
cove
ries
in r
espe
ct o
f ou
tsta
ndin
g cl
aim
s
Rein
sura
nce
an
d ot
her
reco
verie
s re
venu
e
Net
cla
ims
expe
nses
Net
cla
ims
expe
nses
Ope
ning
Clo
sing
Ope
ning
C
losi
ng
----
----
----
----
----
----
----
----
----
----
----
----
----
----
-Rup
ees-
----
----
----
----
----
----
----
----
----
----
----
----
----
----
Dire
ct &
fac
ulta
tive
Fire
and
pro
pert
y da
mag
e 7
,68
9,50
5 3
3,24
2,24
9 3
5,55
4,78
4 1
0,0
02,
040
5
,835
,669
3
0,0
12,2
08
2
9,64
2,31
5 5
,465
,776
4
,536
,264
3
,88
3,52
4
Mar
ine,
avi
atio
n an
d tr
ansp
ort
233
,78
8
4,1
35,3
03
4,3
84,
771
48
3,25
6 1
2,55
7 2
,20
6,79
2 2
,212
,647
1
8,4
12
464
,844
1
,142
,70
4
Mot
or 1
5,67
9,61
8
11,
404,
494
18
,067
,693
2
2,34
2,8
17
4,5
68,5
72
4,9
19,0
00
4
,699
,20
0
4,3
48,7
72
17,
994,
045
6
,50
4,20
6
Mis
cella
neou
s 8
,535
,347
2
0,2
10,7
81
20
,334
,962
8
,659
,528
-
1
7,26
5,57
1 1
3,76
6,12
9 (3
,499
,442
) 1
2,15
8,9
70
1,6
61,1
29
GRA
ND
TO
TAL
32,
138
,258
6
8,9
92,8
27
78,
342,
210
4
1,48
7,64
1 1
0,4
16,7
98
54,
403,
571
50
,320
,291
6
,333
,518
3
5,15
4,12
3 1
3,19
1,56
3
Quarterly Report | for the nine months ended September 30, 2013 19
Nin
e m
onth
s en
ded
Sep
tem
ber
30, 2
013
Nin
e m
onth
s en
ded
Sep
tem
ber
30, 2
012
Busi
ness
Und
erw
ritte
n In
side
Pak
ista
n
Cla
ssC
laim
s pa
id
Out
stan
ding
cla
ims
Cla
ims
exp
ense
Rein
sura
nce
an
d ot
her
reco
verie
s re
ceiv
ed
Rein
sura
nce
and
othe
r re
cove
ries
in r
espe
ct o
f ou
tsta
ndin
g cl
aim
s
Rein
sura
nce
an
d ot
her
reco
verie
s re
venu
e
Net
cla
ims
expe
nses
Net
cla
ims
expe
nses
Ope
ning
Clo
sing
Ope
ning
C
losi
ng
----
----
----
----
----
----
----
----
----
----
----
----
----
----
-Rup
ees-
----
----
----
----
----
----
----
----
----
----
----
----
----
----
Dire
ct &
fac
ulta
tive
Fire
and
pro
pert
y da
mag
e 5
6,40
5,68
0
43,
581,
634
35,
554,
784
48
,378
,830
4
3,8
98,3
23
41,
403,
413
29,
642,
315
32,
137,
225
16,
241,
605
6,7
31,5
60
Mar
ine,
avi
atio
n an
d tr
ansp
ort
5,5
53,7
67
4,0
97,5
21
4,3
84,
771
5,8
41,0
17
344
,08
2 1
,579
,00
8
2,2
12,6
47
977
,721
4
,863
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3
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,162
Mot
or 3
3,8
93,6
99
11,
375,
686
18
,067
,693
4
0,5
85,
706
6,5
09,
607
6,8
38,0
00
4
,699
,20
0
4,3
70,8
07
36,
214,
899
1
9,8
63,7
61
Mis
cella
neou
s 1
9,16
9,73
5 2
1,8
56,9
51
20
,334
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1
7,64
7,746
5
45,6
55
21,
468
,457
1
3,76
6,12
9 (7
,156
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) 2
4,8
04,
419
6,2
96,8
04
GRA
ND
TO
TAL
115
,022
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1 8
0,9
11,7
92
78,
342,
210
1
12,4
53,2
99
51,
297,
667
71,
288
,878
5
0,3
20,2
91
30
,329
,08
0
82,
124,
219
36,
483,
287
The
anne
xed
note
s fo
rm a
n in
tegr
al p
art
of t
hese
con
dens
ed in
terim
fina
ncia
l sta
tem
ents
.
Jam
eel A
. Kha
nD
irect
orPa
rvee
n A
khte
r M
alik
Dire
ctor
Azi
z U
llah
Mem
on
Cha
irman
Mia
n M
.A. S
hahi
dC
hief
Exe
cutiv
e O
ffice
r
20 SPI Insurance Company Limited(formerly Saudi Pak Insurance Company Limited)
Con
dens
ed In
terim
Sta
tem
ent
of E
xpen
ses
(Un-
Audi
ted)
For T
he N
ine
Mon
ths
Ende
d S
epte
mbe
r 30
, 20
13
Qua
rter
end
ed S
epte
mbe
r 30
, 20
13Q
uart
er e
nded
Sep
tem
ber
30,
2012
Busi
ness
Und
erw
ritte
n In
side
Pak
ista
n
Cla
ssC
omm
issi
ons
paid
or
paya
ble
Def
erre
d co
mm
issi
on
Net
co
mm
issi
on
expe
nse
Oth
er
man
agem
ent
expe
nses
Und
erw
ritin
g ex
pens
es
Com
mis
sion
rece
ived
fr
om
re-i
nsur
ers
Une
arne
d co
mm
issi
onC
omm
issi
on
from
re
-ins
urer
s
Net
un
derw
ritin
g ex
pens
es
Net
un
derw
ritin
g ex
pens
esO
peni
ngC
losi
ngO
peni
ngC
losi
ng
----
----
----
----
----
----
----
----
----
----
----
----
----
----
-Rup
ees-
----
----
----
----
----
----
----
----
----
----
----
----
----
----
Dire
ct &
fac
ulta
tive
Fire
and
pro
pert
y da
mag
e 3
,98
3,10
5 1
0,4
64,6
01
9,3
21,1
92
5,1
26,5
14
7,6
99,8
97
12,
826
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1
19,6
73
4,9
99,8
13
18
9,8
39
4,9
29,6
47
7,8
96,7
64
13,
228
,690
Mar
ine, a
viatio
n a
nd tr
ansp
ort
1,8
70,1
02
463
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7
85,
391
1,5
47,8
45
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58,0
01
3,7
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846
-
1
20,8
99
(9)
120
,90
8
3,5
84,9
38
2,8
40,3
96
Mot
or 3
,426
,023
4
,98
6,52
2 4
,918
,927
3
,493
,618
8
,014
,48
7 1
1,50
8,1
05
-
-
-
-
11,
508,
105
11,
523,
911
Mis
cella
neou
s 1
,837
,668
3
,78
4,94
8
2,8
75,0
96
2,7
47,5
20
4,1
68,2
73
6,9
15,7
93
-
697
,40
8
10
2,62
9 5
94,7
79
6,3
21,0
14
4,1
79,6
62
GRA
ND
TO
TAL
11,
116,
898
1
9,69
9,20
5 1
7,90
0,6
06
12,
915,
497
22,
040
,658
3
4,95
6,15
5 1
19,6
73
5,8
18,1
20
292
,459
5
,645
,334
2
9,31
0,82
1 3
1,77
2,65
9
Quarterly Report | for the nine months ended September 30, 2013 21
Nin
e m
onth
s en
ded
Sep
tem
ber
30, 2
013
Nin
e m
onth
s en
ded
Sep
tem
ber
30, 2
012
Busi
ness
Und
erw
ritte
n In
side
Pak
ista
n
Cla
ssC
omm
issi
ons
paid
or
paya
ble
Def
erre
d co
mm
issi
on
Net
co
mm
issi
on
expe
nse
Oth
er
man
agem
ent
expe
nses
Und
erw
ritin
g ex
pens
es
Com
mis
sion
rece
ived
fr
om
re-i
nsur
ers
Une
arne
d co
mm
issi
onC
omm
issi
on
from
re
-ins
urer
s
Net
un
derw
ritin
g ex
pens
es
Net
un
derw
ritin
g ex
pens
esO
peni
ngC
losi
ngO
peni
ngC
losi
ng
----
----
----
----
----
----
----
----
----
----
----
----
----
----
-Rup
ees-
----
----
----
----
----
----
----
----
----
----
----
----
----
----
Dire
ct &
fac
ulta
tive
Fire
and
pro
pert
y da
mag
e 1
3,68
5,76
0
13,
303,
430
9
,321
,192
1
7,66
7,99
8
18
,234
,926
3
5,90
2,92
4 2
78,7
29
10
,333
,720
1
89,
839
1
0,4
22,6
10
25,
480,
314
28
,329
,70
5
Mar
ine, a
viatio
n a
nd tr
ansp
ort
4,4
83,
169
692
,560
7
85,
391
4,3
90,3
38
5,0
65,9
89
9,4
56,3
27
(50
) 4
52,7
03
(9)
452
,662
9
,003
,665
7
,80
7,440
Mot
or 9
,521
,291
3
,88
8,8
66
4,9
18,9
27
8,4
91,2
30
22,
027
,310
3
0,5
18,5
40
-
10
,40
2 -
1
0,4
02
30,
508,
138
3
0,2
01,
065
Mis
cella
neou
s 5
,752
,698
2
,874
,40
0
2,8
75,0
96
5,7
52,0
02
15,
837
,58
9 2
1,58
9,59
1 2
05,
348
1
,453
,358
1
02,
629
1,5
56,0
77
20,
033,
514
11,
122,
479
GRA
ND
TO
TAL
33,
442,
918
2
0,7
59,2
55
17,
900
,60
6 3
6,30
1,56
8
61,
165,
813
9
7,467
,38
2 4
84,
027
1
2,25
0,1
83
292
,459
1
2,44
1,75
1 8
5,02
5,63
1 7
7,460
,689
The
anne
xed
note
s fo
rm a
n in
tegr
al p
art
of t
hese
con
dens
ed in
terim
fina
ncia
l sta
tem
ents
.
Jam
eel A
. Kha
nD
irect
orPa
rvee
n A
khte
r M
alik
Dire
ctor
Azi
z U
llah
Mem
on
Cha
irman
Mia
n M
.A. S
hahi
dC
hief
Exe
cutiv
e O
ffice
r
Jameel A. KhanDirector
Parveen Akhter MalikDirector
Aziz Ullah Memon Chairman
Mian M.A. ShahidChief Executive Officer
22 SPI Insurance Company Limited(formerly Saudi Pak Insurance Company Limited)
Condensed Interim Statement Of Investment Income (Un-Audited)For The Nine Months Ended September 30, 2013
Quarter ended Nine months ended
September September September September30, 2013 30, 2012 30, 2013 30, 2012
..........................................Rupees................................................
Income from held for trading investments
Gain on sale of trading 643,754 - 643,754 -Dividend income - - - -
643,754 - 643,754 -
Income from non-trading investments:
Held-to-maturity
Return on government securities 2,397,863 1,523,657 5,569,588 3,478,675 Return on TDRs 127,130 1,073,210 2,504,446 3,725,335 Return on treasury bills 68,102 61,828 211,894 101,566
Available-for-sale
Dividend income - - 22,425 17,850 2,593,095 2,658,695 8,308,353 7,323,426
Gain/(loss) on sale of non-trading
investments
Available-for-sale - - - -
Impairment (loss) on non-trading investments
Available-for-sale - - - -
Investment related expenses (32,780) (62,870) (37,583) (67,521)Net investment income 3,204,069 2,595,825 8,914,524 7,255,905
The annexed notes form an integral part of these condensed interim financial statements.
Quarterly Report | for the nine months ended September 30, 2013 23
Notes To The Condensed Interim Financial StatementsFor The Nine Months Ended September 30, 2013
1 STATUS AND NATURE OF BUSINESS
SPI Insurance Company Limited (Formerly Saudi Pak Insurance Company Limited) (the Company) is an unquoted public limited company incorporated in Islamabad, Pakistan on February 15, 2005 under the Companies Ordinance, 1984. The Company is engaged in non-life insurance business mainly comprising of fire, marine, motor and miscellaneous. The Company commenced its commercial operations on April 13, 2005. The registered office of the Company is situated at Suite # 204-A, Second Floor, Madina City Mall, Abdullah Haroon Road, Karachi and principal office of the Company is situated at UIG House, 6-D, Upper Mall, Lahore, Pakistan.
2 BASIS OF PREPARATION
The accounting policies and the methods of computation of preparation of these condensed interim financial statements are the same as those applied in the preparation of the financial statements for the year ended December 31, 2012.
2.1 Statement of compliance
These condensed interim financial statements have been prepared in accordance with the requirements of International Accounting Standard 34 - Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance, 1984, the Insurance Ordinance, 2000 and SEC (Insurance) Rules, 2002. In case requirements differ, the provisions or directives of the Companies Ordinance, 1984, the Insurance Ordinance, 2000 and the SEC (Insurance) Rules, 2002 shall prevail.
2.2 Basis of measurement
These financial statements have been prepared under the historical cost convention except that certain financial instruments are carried at fair value and staff retirement benefits are stated at present value.
2.3 Functional and presentation currency
These financial statements are presented in Pakistan Rupees, which is also the Company’s functional and presentation currency. All financial information presented in Pakistan rupees are rounded off to nearest rupees unless otherwise stated.
2.4 Use of estimates and judgments
The preparation of the condensed interim financial statement requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
The significant judgments made by management and the key sources of estimating uncertainty in preparation of these condensed interim financial statements were same as those applied to the annual financial statements for the year ended December 31, 2012.
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies adopted in the preparation of the condensed interim financial statements are the same as those applied in the preparation of the financial statements of the Company for the year ended December 31, 2012.
4 FINANCIAL RISK AND CAPITAL MANAGEMENT
The Company’s financial risk management and capital management objectives and policies are consistent with that disclosed in the annual financial statements for the year ended December 31, 2012.
24 SPI Insurance Company Limited(formerly Saudi Pak Insurance Company Limited)
Notes To The Condensed Interim Financial StatementsFor The Nine Months Ended September 30, 2013
September December30, 2013 31, 2012
(Rupees)5 AUTHORIZED SHARE CAPITAL
Sep 30, Dec 31,2013 2012
(Number of Shares)50,000,000 50,000,000 Ordinary shares of Rs. 10/- each 500,000,000 500,000,000
5.1 PAID-UP SHARE CAPITALIssued, subscribed and paid up capital:
Sep 30,2013
Dec 31,2012
(Number of Shares)
25,000,000 25,000,000 Ordinary shares of Rs. 10/- each
fully paid in cash
250,000,000 250,000,000
7,500,000 7,500,000 Ordinary shares of Rs. 10/- each
issued as fully paid right shares
75,000,000 75,000,000
32,500,000 32,500,000 325,000,000 325,000,000
6 ACCRUED EXPENSES
Audit fee payable - 450,000 Salaries wages and benefits payable 5,580,846 5,485,622 Utilities payable 525,081 430,870 Others 1,340,354 423,997
7,446,281 6,790,489
7 OTHER CREDITORS AND ACCRUALS
Commission - 1,969,467 Rent 18,000 18,000 Government levies payable 7,662,108 5,344,242 Liabilities against cancelled policies 81,614 81,614 Withholding Tax 128,999 183,187 Others 605,095 638,985
8,495,816 8,235,495
8 CONTINGENCIES AND COMMITMENTS
There have been no changes in the contingencies and commitments as disclosed in the annual financial statements of the company for the year ended December 31, 2012.
Quarterly Report | for the nine months ended September 30, 2013 25
September December30, 2013 31, 2012
(Rupees)
9 INVESTMENTS
The investments comprise the following:
Held to maturity
Pakistan Investment Bonds 9.1 76,972,489 48,201,543
Available for sale
Ordinary shares of listed companies 9.2 226,625 684,686 Ordinary shares of unlisted companies 45,000,000 45,000,000 Provision for diminution in value of investments (226,625) (226,625)
45,000,000 45,458,061
121,972,489 93,659,604
9.1 These bonds are held in favour of State Bank of Pakistan in accordance with the requirement of Section 29 of the Insurance Ordinance, 2000. These bonds have a face value of Rs. 76.03 million (Rs. 32.70 million with SBP and Rs. 19.3 million with NBP) and carry mark-up ranging from 8.90% to 12.00% (2012: 9% to 12%) per annum and would mature up to July 2022.
9.1 The market value of available for sale - equity securities as at September 30, 2013 is Rs. Nil (December 31, 2012: 805,230).
Notes To The Condensed Interim Financial StatementsFor The Nine Months Ended September 30, 2013
10 PREMIUM DUE BUT UNPAID
Unsecured
-Considered good 57,884,798 48,702,077
-Considered doubtful 4,922,476 2,563,267 62,807,274 51,265,344
Provision for doubtful balances 10.1 (4,922,476) (2,563,267) 57,884,798 48,702,077
10.1 Provision for doubtful balances
Opening provision (2,563,267) (2,745,354)
Charge for the period / year (2,359,209) 182,087
Closing provision (4,922,476) (2,563,267)
26 SPI Insurance Company Limited(formerly Saudi Pak Insurance Company Limited)
September December30, 2013 31, 2012
(Rupees)
11 AMOUNTS DUE FROM OTHER INSURERS / REINSURERS
Unsecured
-Considered good 89,903,210 45,544,938 -Considered doubtful 12,642,492 11,892,492
102,545,702 57,437,430 Provision for doubtful balances 11.1 (12,642,492) (11,892,492)
89,903,210 45,544,938
11.1 Provision for doubtful balances
Opening provision (11,892,492) (5,453,409)Charge for the period / year (750,000) (6,439,083)Closing provision (12,642,492) (11,892,492)
12 TRANSACTIONS WITH RELATED PARTIES
The related parties comprise of Saudi Pak Industrial & Agricultural Investment Company Limited , Silk Bank Limited, Saudi Pak Leasing Company Limited, and United Track Systems (Pvt.) Limited on the basis of related group companies, entities under common control, entities with common directors, major shareholders, directors, key management personnel and employee retirement benefit fund. Amount due to/from and other significant transactions, other than those disclosed elsewhere in these financial statements, are as follows:
Transactions: and balances with associated companies
Insurance premium
Balance at beginning of the period 1,545,517 32,421,665 Gross insurance premium written 31,756,352 19,729,050 (including administrative surcharge,government levies and policies stamps) Received / adjusted during the period 25,110,467 50,605,198 Balance at end of the period 2,340,168 1,545,517
Insurance claim expenseOutstanding claims at beginning of the period 5,097,579 6,946,040 Gross claims expense for the period 5,289,309 9,980,483 Claim paid during the period 6,180,497 11,828,944 Outstanding claims at end of the period 4,206,391 5,097,579
Notes To The Condensed Interim Financial StatementsFor The Nine Months Ended September 30, 2013
Jameel A. KhanDirector
Parveen Akhter MalikDirector
Aziz Ullah Memon Chairman
Mian M.A. ShahidChief Executive Officer
Quarterly Report | for the nine months ended September 30, 2013 27
September December30, 2013 31, 2012
(Rupees)
Other transactions for the period with parent and other associated companies
Rental expense 1,498,500 1,887,000 Bank charges 125,705 74,989 Tracker charges 1,278,900 828,000 Profit on term deposit receipts 2,504,446 4,944,193 Profit on bank deposits 47,278 79,168
Other balances with associated companiesTerm deposits 930,000 39,966,000 Profit & Loss Sharing Accounts 2,128,889 1,026,666 Current account 17,478,219 5,552,784 Accrued investment income 1,138 2,006,052
Transaction during The period with other related parties(Key management personnel)
Contribution to provident fund - - Contribution defined benefit plans - 564,355 Remuneration of key management personnel 17,525,000 20,382,966
Balances with other related parties(Key management personnel)
(Payable) / receivable from defined benefit plan (3,598,366) (2,294,644)Loan to key management personnel - 20,000
13 TAXATION
Provision in respect of taxation, for the period under review, is estimated only and final liability will be determined on the basis of annual results.
14 DATE OF AUTHORIZATION FOR ISSUE
These interim condensed financial statements have been authorized for issue on October 29, 2013 in accordance with a resolution of board of directors of the company.
15 CORRESPONDING FIGURES
Corresponding figures have been reclassified and re-arranged, wherever necessary to confirm with the current classification. However, there are no material classification to report.
Notes To The Condensed Interim Financial StatementsFor The Nine Months Ended September 30, 2013
Notes
www.spiinsurance.com.pk
Quarterly Report | for the nine months ended September 30, 2013
GROWING VALUES
Head Office:1st Floor, UIG House, 6 - D, Upper Mall, Lahore. T: (92-42) 35776561-62-67-68, 35756563F: (92-42) 35776560E: [email protected]
Concept, Design & Printed by: Al-Imran www.alimranprinters.com
(formerly Saudi Pak Insurance Company Limited)