Contact Information - SPI Insurance Company...

HALF YEARLY REPORT2016

Contact Information

Annual Report 2015

UIG House, 6-D, Upper Mall, Lahore.

T: (92-42) 35776561-62, 67, 68F: (92-42) 35776560E: [email protected]

SPI Insurance Company Limited

DeliveringGROWTH


Contact Information

2016



SPI Insurance Company LimitedHalf yearly report

1

Company Information 02

Key Management Personnel 04

Banks 05

Directors’ Review Report to the Members (English) 06

Directors’ Review Report to the Members (Urdu) 07

FINANCIAL STATEMENTS (Conventional)

Auditors’ Review Report to the Members 09

Condensed Interim Balance Sheet 10

Condensed Interim Profit and Loss Account 12

Condensed Interim Statement of Comprehensive Income 14

Condensed Interim Statement of Changes in Equity 15

Condensed Interim Statement of Cash Flows 16

Condensed Interim Statement of Premiums 18

Condensed Interim Statement of Claims 20

Condensed Interim Statement of Expenses 22

Condensed Interim Statement of Investment Income 24

Notes To The Condensed Interim Financial Statements 25

FINANCIAL STATEMENTS (Window Takaful Operations)

Auditors’ Review Report to the Members 33

Condensed Interim Balance Sheet 34

Condensed Interim Profit and Loss Account 36

Condensed Interim Statement of Comprehensive Income 38

Condensed Interim Statement of Changes in Funds 39

Condensed Interim Statement of Cash Flows 40

Condensed Interim Statement of Contributions 42

Condensed Interim Statement of Claims 44

Condensed Interim Statement of Expenses 46

Condensed Interim Statement of Investment Income 48

Notes To The Condensed Interim Financial Statements 49

Notes 52

Inside SPI Insurance Company Limited

Business Report

SPI Insurance Company LimitedHalf Yearly Report 2016

2

Chairman

Mr. Aziz Ullah Memon

Managing Director & Chief Executive

Mian M. A. Shahid

Directors

Mr. Abdul Majeed

Mr. Jameel A. Khan

Mr. Muhammad Saleem Sheikh

Mr. Uzman Naveed Chaudhary

Mr. Mohammad Asghar

Underwriting Committee

Mian M. A. Shahid (Chairman)

Mr. Abdul Majeed (Member)

Mr. Imtiaz Ali (Member & Secretary)

Claim Settlement Committee

Mr. Uzman Naveed Chaudhary (Chairman)

Mian M. A. Shahid (Member)

Mr. Naeem Tariq (Member & Secretary)

Reinsurance & Co-insurance Committee

Mian M. A. Shahid (Chairman)

Mr. Abdul Majeed (Member)

Mr. Faisal Akbar (Member & Secretary)

Remuneration Committee

Mr. Jameel A. Khan (Chairman)


Mr. Shahid Malik (Member & Secretary)

Company Information

Nominations Committee

Mr. Azizullah Memon (Chairman)


Mr. Noshad Ahmed (Member & Secretary)

Ethics and Compliance Committee

Mr. Muhammad Saleem Sheikh (Chairman)

Mr. Naeem Tariq (Member)

Mr. Faisal Akbar (Member & Secretary)

Risk Management Committee

Mr. Uzman Naveed Chaudhary (Chairman)

Mr. Aziz Ullah Memon (Member)

Mr. Naeem Tariq (Member)

Mr. Imtiaz Ali (Secretary)

Investment Committee

Mr. Mohammad Asghar (Chairman)

Mr. Azizullah Memon (Member)


Mr. Naeem Tariq (Secretary)

Audit Committee

Mr. Jameel A. Khan (Chairman)

Mr. Mohammad Asghar (Member)

Mr. Muhammad Saleem Sheikh (Member)

Mian Mohsin Aslam (secretary)

3

Registered Office

Suite # 204-A, Second Floor,

Madina City Mall, Abdullah Haroon Road,

Karachi.

Phone # (021) 37010190

Fax # (021) 37010191

Head Office

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

Chief Financial Officer

Mr. Naeem Tariq

Company Secretary

Mr. Noshad Ahmed

Legal Advisors

M/s Mandviwalla & Zafar

M/s Zeeshan Abdullah

Chief Internal Auditor

Mian Mohsin Aslam

Auditors

M/s Ilyas Saeed & Co

Chartered Accountants


4

Conventional

Managing Director & Chief Executive Officer Mian M. A. Shahid

Deputy Managing Director Mr. Shaheryar Akbar Raja

Advisor Maj. Gen. (R) Asif Duraiz Akhter

General Manager Re-Insurance Mr. Faisal Akbar (FCA)

General Manager Health Mr. Muneer Khan

Chief Manager Underwriting Mr. Imtiaz Ali

Chief Manager Claims / Motor Mr. Khalid Nazeer Bajwa

Chief Manager Accounts Mr. Saleem Akhter (FCMA)

Manager Claims / Non Motor Mr. Naveed ul Haq Nomani

Manager I.T Mr. Saquib Obaid ur Rehman

Manager Administration Mr. Shahid Malik

Manager Travel Mr. Iqbal Hashmi

Takaful

Shahriah Advisor Mufti Muhammad Umar Ashraf

Joint Managing Director Mr. Imtiaz Ahmed Bhatti

Chief Operating Officer & Head of WTO Syed Waqar Azeem

Head of Underwriting Mr. Muzammil Bashir (ACII)

Chief Manager Accounts Mr. Ghulam Hassan Chauhdary

Key Management Personnel

5

Banks

Al-Barka Bank (Pakistan) Limited

Allied Bank Limited

Apna Microfinance Bank Limited

Bank Al-Falah Limited

Bank Al-Habib Limited

Bank Islami Pakistan Limited

Burj Bank Limited

Faysal Bank Limited

Finca Microfinance Bank Limted

Habib Bank Limited

JS Bank Limited

Meezan Bank Limited

National Bank of Pakistan

NIB Bank Limited

SILKBANK Limited

Sindh Bank Limited

Soneri Bank Limited

State Bank of Pakistan

Tameer Microfinance Bank Limited

The Bank Of Punjab

United Bank Limited

Zarai Taraqiati Bank Limited


6

Directors’ Review Report to the Members

Dear Fellow Members!

On behalf of the Board of Directors, I am pleased to present the half yearly review report of the SPI Insurance Company Limited together with the un-audited Financial Statements along with Window Takaful Operations for the half year ending June 30, 2016.

Financial Highlights

During the quarter ended June 30, 2016, the gross premium stood at Rs.317.119 million as against Rs.321.749 million for the same period of last year. The net premium is Rs.247.851 million as compared to Rs.250.920 million in the last year. The underwriting profit registered at Rs.70.114 million as against Rs.79.732 million for the corresponding period last year. The investment and other income for the second quarter 2016 is Rs.9.646 million, as against Rs.8.699 million for the corresponding period last year. The net claims stood at Rs.91.908 million as against Rs.77.064 million for the same period ending June 30, 2016The overall profit after tax of the Company for the half year 2016 stands Rs.24.892 million as compared to Rs.33.945 million for the previous year. As a result the earning per share is Rs. 0.63 as compared to Rs.1.04 in the year 2015

March 31,2016 March 31, 2015(Rupees in thousands)

Conventional InsurancePremium Written 317,119 321,749Net Premium revenue 247,851 250,920Net Claims 91,908 77,064Investment and other Income 9,646 8,699Net Commission 22,925 33,943Management & other expenses 101,456 97,067Underwriting Result 70,114 79,732Profit /(Loss) before tax 40,635 51,546Window Takaful OperationsContribution Written 140,389 83,006Net Contribution revenue 64,880 4,457Wakala Fee 56,156 33,202Net Claims 40,024 3,283Net Commission 10,852 6,854Management expenses 51,863 24,247Surplus/(Deficit) in PTF 23,933 1,315(Deficit)/Surplus in OPF (4,150) 3,922

Consolidated ResultsProfit before tax 36,485 55,468Profit after tax 24,892 33,945E.P.S. 0.63 1.04

Credit Rating

The Company is rated “A-“(Single A minus) by the Pakistan Credit Rating Agency (PACRA).

Future Outlook

Despite the consistant efforts made to achieve the projected business target, some areas could not achieve the desired results. However conventional and Takaful business is gaining momentum and forthcoming third and fourth quarter will reflect better results.

Appreciation and Acknowledgement

I would like to express my sincere gratitude to The Securities and Exchange Commission of Pakistan, State Bank of Pakistan, our Reinsurers and Bankers for their continued guidance and assistance. We also appreciate the efforts of our statutory auditors M/s. Ilyas Saeed & Co., Chartered Accountants, for the accomplishment of the audit work within the stipulated time.

On behalf of the Board, I would also like to pay compliments to our valued customers and shareholders for reposing their confidence over the contribution of management and employees for their hard work and dedication towards the continued growth of the Company. For and on behalf of the Board of Directors

Mian M. A. ShahidDirector/Chief Executive

Lahore: August 31, 2016

7

321,749 317,119250,920 247,851 77,064 91,908

8,699 9,64633,943 22,92597,067 101,45679,732 70,11451,546 40,635

83,006 140,3894,457 64,880

33,202 56,1563,283 40,0246,854 10,852

24,247 51,8631,315 23,9333,922 (4,150)

55,468 36,48533,945 24,892

1.04 0.63


8

Delivering Growth

FINANCIAL STATEMENTSFor the quarter and half year ended June 30, 2016

9

Auditors’ Review Report to the Members

Introduction

We have reviewed the accompanying;

a) condensed interim balance sheet;b) condensed interim profit and loss account;c) condensed interim statement of comprehensive income;d) condensed interim statement of changes in equity; e) condensed interim statement of cash flows;f) condensed interim statement of premiums ;g) condensed interim statement of claims;h) condensed interim statement of expenses; andi) condensed interim statement of investment income

of SPI Insurance Company Limited as at June 30, 2016, and the related notes forming part thereof for the six-month period then ended (here-in-after referred to as the “condensed interim financial information”). Management is responsible for the preparation and presentation of this condensed 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 condensed financial information based on our review.

Scope of Review

We conducted our review in accordance with the 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 the 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 information as of and for the half year ended June 30, 2016 is not prepared, in all material respects, in accordance with the approved accounting standards as applicable in Pakistan for interim financial reporting.

The figures for the quarter ended June 30, 2015 and June 30, 2016 in condensed interim financial information have not been reviewed by us as we are required to review only the cumulative figures for the half year ended June 30, 2016.

_________________________ILYAS SAEED & CO. CHARTERED ACCOUNTANTSEngagement Partner; Irfan Ilyas

Place: LahoreDate: August 31, 2016


10

(Un-audited) (Audited)

NoteJune 30,

2016Rupees

December 31, 2015

RupeesSHARE CAPITAL AND RESERVES

Authorized share capital 3 1,000,000,000 1,000,000,000

Paid-up share capital 396,500,000 325,000,000

Retained earnings 25,608,881 72,216,653

422,108,881 397,216,653

UNDERWRITING PROVISIONS

Provision for outstanding claims (including IBNR) 56,087,573 53,975,167

Provision for unearned premium 248,605,609 240,047,499

Additional provision for unexpired risk 2,652,614 2,652,614

Commission income unearned 6,444,197 7,720,910

Total underwriting provisions 313,789,993 304,396,190

DEFERRED LIABILITIES

Staff retirement gratuity 12,996,103 11,906,955

CREDITORS AND ACCRUALS

Amount due to other insurers/ reinsurers 3,405,035 11,437,694

Accrued expenses 4 11,606,734 12,689,359

Taxation-payments less provision 34,248,937 25,210,786

Other creditors and accruals 5 13,358,850 11,242,700

62,619,556 60,580,539

OTHER LIABILITIES

Liabilities against leased assets 9,702,174 11,949,181

TOTAL LIABILITIES 399,107,826 388,832,865

TOTAL Liabilities OF WINDOW TAKAFUL OPERATIONS 6 69,075,793 60,869,577

TOTAL EQUITY AND LIABILITIES 890,292,500 846,919,095

CONTINGENCIES AND COMMITMENTS 7 - -

The annexed notes from 1 to 14 form an integral part of these condensed interim financial statements.

Condensed Interim Balance Sheet (Un-audited)As At June 30, 2016

Chief Executive Officer Chairman

11

Condensed Interim Balance Sheet (Un-audited)As At June 30, 2016

(Un-audited) (Audited)

NoteJune 30,

2016Rupees

December 31, 2015

RupeesCASH AND BANK DEPOSITSCash and other equivalents 2,003,349 947,105 Current and other accounts 65,165,760 66,372,399 Deposits maturing within 12 months 30,030,000 16,230,000

97,199,109 83,549,504

Loans to employees unsecured 1,971,782 1,169,309 Investments 8 95,983,254 92,147,894 Deferred tax asset 23,962,387 23,556,206

CURRENT ASSETS - OTHERSPremiums due but unpaid 9 94,982,068 107,806,290 Amount due from other insurers/reinsurers 10 121,263,100 86,268,144 Accrued investment income 4,218,089 4,223,592 Reinsurance recoveries against outstanding claims 32,270,497 30,509,927 Deferred commission expense 42,277,297 33,024,884 Prepayments -Prepaid reinsurance premium ceded 66,087,298 74,591,948 -Others 7,932,097 6,928,515 Sundry receivables 94,206,675 100,942,085

463,237,121 444,295,385 FIXED ASSETSTANGIBLEOffice improvements 10,190,300 9,480,245 Furniture and fixtures 3,907,901 3,837,573 Office equipment 7,009,260 7,083,431 Motor vehicles 24,757,293 26,545,366 Computer equipment 3,433,456 2,915,954 Tracking devices 25,822,256 22,382,550

75,120,466 72,245,119

Leased assets 15,499,970 16,681,294

INTANGIBLEComputer software 118,431 130,697

TOTAL ASSETS OF WINDOW TAKAFUL OPERATIONS 6 117,199,980 113,143,687

TOTAL ASSETS 890,292,500 846,919,095

The annexed notes from 1 to 14 form an integral part of these condensed interim financial statements

Director Director


12

Quarter ended June 30

Fire and

property

damage

Marine

aviation and

transport

MotorMiscella-

neous

2016

Aggregate

2015

Aggregate

- - - - - - - - - - - - - - - - - - - - - - - - - R u p e e s - - - - - - - - - - - - - - - - - - - - - - - -

REVENUE ACCOUNT

Net premium revenue 14,789,629 11,109,886 55,925,334 51,536,663 133,361,512 105,734,968

Net claims (5,035,331) (775,104) (19,290,543) (21,118,896) (46,219,874) (25,676,117)

Premium deficiency reversal - - - - - -

Management expenses (7,588,559) (2,213,268) (9,797,636) (9,867,012) (29,466,475) (29,517,534)

Net commission (2,489,647) (3,721,465) (5,170,336) (4,644,274) (16,025,722) (10,994,237)

Net underwriting expenses (10,078,206) (5,934,733) (14,967,972) (14,511,286) (45,492,197) (40,511,771)

UNDERWRITING RESULT (323,908) 4,400,049 21,666,819 15,906,481 41,649,441 39,547,080

Investment income 3,917,989 2,838,008

Other income 1,249,824 2,038,676

Profit before taxation from Window Takaful Operations (2,926,160) 2,923,175

Finance charges on leased assets 261,786 -

General and administration expenses (16,906,111) (23,192,421)

Profit before tax 27,246,768 24,154,518

Less: Provision for taxation

Current (9,605,814) (15,356,315)

Deferred 621,176 5,289,322

(8,984,638) (10,066,993)

Profit after tax 18,262,130 14,087,524

Basic and diluted earning per share 0.46 0.43

Condensed Interim Profit and Loss Account (Un-audited)for the quarter and half year ended June 30, 2016

Chief Executive Officer Chairman Director Director

13


Half year ended June 30

Fire and

property

damage

Marine

aviation and

transport

MotorMiscella-

neous

2016

Aggregate

2015

Aggregate

- - - - - - - - - - - - - - - - - - - - - - - - - R u p e e s - - - - - - - - - - - - - - - - - - - - - - - -

REVENUE ACCOUNT

Net premium revenue 40,933,510 15,956,337 100,969,995 89,991,325 247,851,167 250,920,850

Net claims (16,760,749) (1,218,398) (43,875,344) (30,054,347) (91,908,838) (77,064,106)

Premium deficiency reversal - - - - - -

Management expenses (13,513,041) (5,392,320) (21,312,849) (22,684,525) (62,902,735) (60,181,376)

Net commission (3,851,790) (4,765,027) (7,520,607) (6,787,583) (22,925,007) (33,942,726)

Net underwriting expenses (17,364,831) (10,157,347) (28,833,456) (29,472,108) (85,827,742) (94,124,102)

UNDERWRITING RESULT 6,807,930 4,580,592 28,261,195 30,464,870 70,114,587 79,732,642


Other income 3,099,323 3,381,429

Profit before taxation from General Takaful Operations (4,149,923) 3,922,346

Finance charges on leased assets (571,817) -

General and administration expenses (38,553,289) (36,885,360)

Profit before tax 36,485,243 55,468,638

Less: Provision for taxation

Current (11,999,195) (16,808,174)

Deferred 406,181 (4,714,611)

(11,593,014) (21,522,785)

Profit after tax 24,892,228 33,945,853

profit and loss appropriation account

Balance at commencement of the period 72,216,653 3,529,262

Profit after tax for the period 24,892,228 33,945,853

Accumulated profit/loss at end of the period 97,108,881 37,475,115

Bonus share issued - final 71,500,000 -

Balance un-appropriated profit at the end of period 25,608,881 37,475,115

Basic and diluted earning per share 0.63 1.04



14

Quarter ended Half year endedJune 30,

2016June 30,

2015June 30,

2016June 30,

2015- - - - - - - - - - - - - - - - -R u p e e s- - - - - - - - - - - - - - - - -

Profit for the period 18,262,130 14,087,524 24,892,228 33,945,853

Other comprehensive income Items that may be subsequently reclassified to profit or loss - - - - Items that may not be subsequently reclassified to profit or loss - - - -

Total comprehensive profit for the period 18,262,130 14,087,524 24,892,228 33,945,853


Condensed Interim Statement of Comprehensive Income (Un-audited)for the quarter and half year ended June 30, 2016


15

Share capitalReserve for

issuance of bonus share

Accumulated profit / (loss)

Total

- - - - - - - - - - - R u p e e s - - - - - - - - - - -Balance as at January 01, 2015 325,000,000 - 3,529,262 328,529,262

Net profit for the period - - 33,945,853 33,945,853

Balance as at June 30, 2015 325,000,000 - 37,475,115 362,475,115

Balance as at January 01, 2016 325,000,000 - 72,216,653 397,216,653

Transfer to reserve fo issuance of bonus share - 71,500,000 (71,500,000) -

Bonus share issue 71,500,000 (71,500,000) -

Net profit for the period - - 24,892,228 24,892,228

Balance as at June 30, 2016 396,500,000 - 25,608,881 422,108,881


Condensed Interim Statement of Changes in Equity (Un-audited)for the quarter and half year ended June 30, 2016



16

Half year endedJune 30,

2016Rupees

June 30,2015

RupeesOPERATING CASH FLOWSa) Underwriting activities

Premiums received 329,943,622 315,476,909 Reinsurance premiums paid (60,238,133) (72,343,611)Claims paid (98,940,616) (119,358,451)Reinsurance and other recoveries received (27,611,341) 52,011,866 Commission paid (37,950,261) (34,625,865)Commission received 4,496,128 7,623,717 Other underwriting payments (46,409,684) (52,121,502)Net cash flow from underwriting activities 63,289,715 96,663,063

b) Other operating activities

Income tax paid (2,961,044) (3,783,762)General and administration expenses paid (37,981,473) (36,546,865)Other operating payments 5,731,828 (1,084,464)Other operating receipts 1,033,525 (6,005,889)Loans and advances paid (802,473) (135,804)Net cash outflow from other operating activities (34,979,637) (47,556,784)Total cash flow from all operating activities 28,310,078 49,106,279

INVESTMENT ACTIVITIES

Profit/ return received 6,551,865 5,258,354 Lease hold Payments (2,818,824) (3,386,778)Payments for investments (3,835,360) (10,398,621)Disposal of fixed assets 335,936 - Investment - window Takaful Operations (4,149,923) - Fixed capital expenditure (10,744,167) (18,422,429)Total cash flow from investing activities (14,660,473) (26,949,474)Net cash inflow / (outflow) from all activities 13,649,605 22,156,805

Cash and cash equivalents at beginning of the period 83,549,504 62,957,171

Cash and cash equivalents at end of the period 97,199,109 85,113,976

Condensed Interim Statement of Cash Flows (Un-audited)for the half year ended June 30, 2016

17


Half year endedJune 30,

2016Rupees

June 30,2015

RupeesReconciliation to Profit and Loss Account

Operating cash flows 28,310,078 49,106,279 Depreciation / amortisation expense (8,775,328) (4,726,889)Lease rentals (571,817) - Investment and other income 6,546,362 8,699,009 Provision for doubtful debts (1,714,746) (129,967)Provision for Gratuity (2,589,148) (1,821,590)Gain from sale of fixed assets 48,853 - (Decrease) / increase in assets other than cash 17,314,536 10,100,860 Takaful Income / (Loss) (4,149,923) 3,922,346 Decrease in liabilities other than running finance 2,066,376 (9,681,410)Reversal/ (provision) for taxation (11,593,014) (21,522,785)

Profit/ (loss) after taxation 24,892,228 33,945,853

Definition of cash

Cash comprises of cash in hand, policy stamps, bond papers cheques in hand, bank balances and other deposits which are readily convertible to cash in hand and which are used 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 2,003,349 17,566 Current and other accounts 65,165,760 67,566,410 Deposits maturing within 3 months 30,030,000 17,530,000

97,199,109 85,113,976




18

Busi

ness

Und

erw

ritt

en In

side

Pak

ista

n

Qua

rter

end

ed Ju

ne 3

0

Cla

ssPr

emiu

m

Wri

tten

Une

arne

d pr

emiu

m

rese

rve

Prem

ium

ea

rned

Rei

nsur

ance

pr

emiu

m

cede

d

Prep

aid

rein

sura

nce

pre

miu

m c

eded

Rein

sura

nce

expe

nse

Net

pre

miu

m r

even

ue

Ope

ning

Clo

sing

Ope

ning

Clo

sing

2016

2015

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

R u

p e

e s

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

-

Dire

ct a

nd fa

cult

ativ

e

Fire

and

pro

pert

y da

mag

e 4

3,33

0,99

4 4

6,92

1,49

5 5

9,00

6,32

3 3

1,24

6,16

6 8

,316

,900

3

0,03

0,05

1 2

1,89

0,41

4 1

6,45

6,53

7 1

4,78

9,62

9 1

6,65

7,05

6

Mar

ine,

avi

atio

n an

d tr

ansp

ort

13,

880,

624

6,9

43,4

30

7,3

03,0

77

13,

520,

977

3,0

18,3

69

6,4

69,0

75

7,0

76,3

53

2,4

11,0

91

11,

109,

886

4,4

42,9

72

Mot

or 5

9,25

5,89

6 9

7,65

1,85

6 9

2,92

7,50

8 6

3,98

0,24

4 2

0,89

6,58

6 1

5,90

7,94

3 2

8,74

9,61

9 8

,054

,910

5

5,92

5,33

4 5

2,54

5,21

2

Misc

ella

neou

s 6

0,72

0,96

5 9

2,49

9,19

6 8

9,36

8,70

1 6

3,85

1,46

0 3

,864

,186

1

6,82

1,52

3 8

,370

,912

1

2,31

4,79

7 5

1,53

6,66

3 3

2,08

9,72

8

TOTA

L 1

77,1

88,4

79

244

,015

,977

2

48,6

05,6

09

172

,598

,847

3

6,09

6,04

1 6

9,22

8,59

2 6

6,08

7,29

8 3

9,23

7,33

5 1

33,3

61,5

12

105

,734

,968

Con

dens

ed In

teri

m S

tate

men

t of

Pre

miu

ms

(Un-

audi

ted)

for

the

quar

ter

and

half

year

end

ed Ju

ne 3

0, 2

016

19

Hal

f yea

r en

ded

June

30

Cla

ssPr

emiu

m

Wri

tten

Une

arne

d pr

emiu

m

rese

rve

Prem

ium

ea

rned

Rei

nsur

ance

pr

emiu

m

cede

d

Prep

aid

rein

sura

nce

pre

miu

m c

eded

Rein

sura

nce

expe

nse

Net

pre

miu

m r

even

ue

Ope

ning

Clo

sing

Ope

ning

Clo

sing

2016

2015

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

R u

p e

e s

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

-

Dire

ct a

nd fa

cult

ativ

e

Fire

and

pro

pert

y da

mag

e 6

8,12

4,97

9 5

7,45

8,65

8 5

9,00

6,32

3 6

6,57

7,31

5 1

6,63

3,80

0 3

0,90

0,41

9 2

1,89

0,41

4 2

5,64

3,80

5 4

0,93

3,51

0 5

0,67

8,22

6

Mar

ine,

avi

atio

n an

d tr

ansp

ort

27,

184,

973

6,0

84,0

46

7,3

03,0

77

25,

965,

942

7,4

02,5

38

9,6

83,4

20

7,0

76,3

53

10,

009,

605

15,

956,

337

13,

987,

745

Mot

or 1

07,4

47,1

23

96,

405,

475

92,

927,

508

110

,925

,091

2

1,81

0,38

1 1

6,89

4,33

4 2

8,74

9,61

9 9

,955

,096

1

00,9

69,9

95

102

,602

,929

Misc

ella

neou

s 1

14,3

62,3

24

80,

099,

320

89,

368,

701

105

,092

,943

6

,358

,755

1

7,11

3,77

5 8

,370

,912

1

5,10

1,61

8 8

9,99

1,32

5 8

3,65

1,95

0

TOTA

L 3

17,1

19,3

99

240

,047

,499

2

48,6

05,6

09

308

,561

,291

5

2,20

5,47

4 7

4,59

1,94

8 6

6,08

7,29

8 6

0,71

0,12

4 2

47,8

51,1

67

250

,920

,850

The

anne

xed

note

s fr

om 1

to 1

4 fo

rm a

n in

tegr

al p

art o

f the

se c

onde

nsed

inte

rim fi

nanc

ial s

tate

men

ts.

Chi

ef E

xecu

tive

Offi

cer

Cha

irman

Dire

ctor

Dire

ctor

Con

dens

ed In

teri

m S

tate

men

t of

Pre

miu

ms

(Un-

audi

ted)

for

the

quar

ter

and

half

year

end

ed Ju

ne 3

0, 2

016


20

Busi

ness

Und

erw

ritt

en In

side

Pak

ista

n

Qua

rter

end

ed Ju

ne 3

0

Cla

ss C

laim

s pa

id

Out

stan

ding

cl

aim

s C

laim

ex

pens

es

Rei

nsur

ance

an

d ot

her

reco

veri

es

rece

ived

Rei

nsur

ance

and

oth

er

reco

veri

es in

res

pect

of

outs

tand

ing

clai

ms

Rei

nsur

ance

an

d ot

her

reco

veri

es

reve

nue

Net

cla

ims

expe

nses

Ope

ning

C

losi

ng

Ope

ning

C

losi

ng

2016

2015

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

R u

p e

e s

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

Dire

ct a

nd fa

cult

ativ

e

Fire

and

pro

pert

y da

mag

e 7

,861

,623

2

1,39

8,66

7 1

9,38

1,12

4 5

,844

,081

8

14,1

05

16,

215,

381

16,

210,

026

808

,750

5

,035

,331

4

,192

,403

Mar

ine,

avi

atio

n an

d tr

ansp

ort

822

,449

3

,945

,171

3

,897

,826

7

75,1

04

- 1

,600

,583

1

,600

,583

-

775

,104

1

52,5

69

Mot

or 2

4,06

5,74

3 1

3,24

5,96

4 1

0,62

2,86

8 2

1,44

2,64

7 1

,607

,104

-

545

,000

2

,152

,104

1

9,29

0,54

3 1

7,98

0,65

2

Misc

ella

neou

s 1

8,07

8,10

3 1

7,85

7,33

5 2

2,18

5,75

5 2

2,40

6,52

3 1

,594

,611

1

4,22

1,87

2 1

3,91

4,88

8 1

,287

,627

2

1,11

8,89

6 3

,350

,494

TOTA

L 5

0,82

7,91

8 5

6,44

7,13

7 5

6,08

7,57

3 5

0,46

8,35

5 4

,015

,820

3

2,03

7,83

6 3

2,27

0,49

7 4

,248

,481

4

6,21

9,87

4 2

5,67

6,11

8

Con

dens

ed In

teri

m S

tate

men

t of

Cla

ims

(Un-

audi

ted)

for

the

quar

ter

and

half

year

end

ed Ju

ne 3

0, 2

016

21

Hal

f yea

r en

ded

June

30

Cla

ss C

laim

s pa

id

Out

stan

ding

cl

aim

s C

laim

ex

pens

es

Rei

nsur

ance

an

d ot

her

reco

veri

es

rece

ived

Rei

nsur

ance

and

oth

er

reco

veri

es in

res

pect

of

outs

tand

ing

clai

ms

Rei

nsur

ance

an

d ot

her

reco

veri

es

reve

nue

Net

cla

ims

expe

nses

Ope

ning

C

losi

ng

Ope

ning

C

losi

ng

2016

2015

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

R u

p e

e s

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

Dire

ct a

nd fa

cult

ativ

e

Fire

and

pro

pert

y da

mag

e 1

4,92

3,95

1 1

6,72

9,28

2 1

9,38

1,12

4 1

7,57

5,79

4 8

24,2

96

16,

219,

277

16,

210,

026

815

,045

1

6,76

0,74

9 1

9,95

8,59

2

Mar

ine,

avi

atio

n an

d tr

ansp

ort

11,

518,

254

14,

195,

856

3,8

97,8

26

1,2

20,2

24

- 1

,598

,757

1

,600

,583

1

,826

1

,218

,398

5

,725

,767

Mot

or 4

3,02

3,07

6 6

,453

,207

1

0,62

2,86

8 4

7,19

2,73

7 2

,772

,393

-

545

,000

3

,317

,393

4

3,87

5,34

4 3

8,51

1,83

2

Misc

ella

neou

s 2

9,47

5,33

5 1

6,59

6,82

2 2

2,18

5,75

5 3

5,06

4,26

8 3

,786

,926

1

2,69

1,89

3 1

3,91

4,88

8 5

,009

,921

3

0,05

4,34

7 1

2,86

7,91

5

TOTA

L 9

8,94

0,61

6 5

3,97

5,16

7 5

6,08

7,57

3 1

01,0

53,0

23

7,3

83,6

15

30,

509,

927

32,

270,

497

9,1

44,1

85

91,

908,

838

77,

064,

106

The

anne

xed

note

s fr

om 1

to 1

4 fo

rm a

n in

tegr

al p

art o

f the

se c

onde

nsed

inte

rim fi

nanc

ial s

tate

men

ts.

Chi

ef E

xecu

tive

Offi

cer

Cha

irman

Dire

ctor

Dire

ctor

Con

dens

ed In

teri

m S

tate

men

t of

Cla

ims

(Un-

audi

ted)

for

the

quar

ter

and

half

year

end

ed Ju

ne 3

0, 2

016


22

Con

dens

ed In

teri

m S

tate

men

t of

Exp

ense

s (U

n-au

dite

d)fo

r th

e qu

arte

r an

d ha

lf ye

ar e

nded

June

30,

201

6

Busi

ness

Und

erw

ritt

en In

side

Pak

ista

n

Qua

rter

end

ed Ju

ne 3

0

Cla

ssC

omm

issi

on

paid

or

paya

ble

Def

erre

d co

mm

issi

on

Net

co

mm

issio

n ex

pens

e

Oth

er

man

agem

ent

expe

nses

Und

erw

ritin

g ex

pens

es

Com

mis

sion

re

ceiv

ed fr

om

re-in

sure

rsU

near

ned

com

mis

sion

Com

miss

ion

from

re

insu

rers

Net

un

derw

ritin

g ex

pens

es

Ope

ning

Clo

sing

Ope

ning

Clo

sing

2016

2015

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

-- R

upee

s -

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

---

Dire

ct &

facu

ltat

ive

Fire

and

pro

pert

y da

mag

e 8

,952

,557

1

5,06

9,65

6 2

0,56

7,67

3 3

,454

,540

7

,588

,559

1

1,04

3,09

9 -

1,2

62,6

92

297

,799

9

64,8

93

10,

078,

206

5,3

98,8

15

Mar

ine,

avi

atio

n an

d tr

ansp

ort

2,6

40,4

66

2,5

12,2

74

1,3

83,5

20

3,7

69,2

20

2,2

13,2

68

5,9

82,4

88

- 3

14,4

16

266

,661

4

7,75

5 5

,934

,733

3

,892

,453

Mot

or 5

,712

,780

1

0,66

9,04

7 1

0,95

5,46

3 5

,426

,364

9

,797

,636

1

5,22

4,00

0 4

,496

,128

1

,190

,627

5

,430

,727

2

56,0

28

14,

967,

972

17,

430,

109

Misc

ella

neou

s 5

,250

,439

9

,502

,368

9

,370

,641

5

,382

,166

9

,867

,012

1

5,24

9,17

9 -

1,1

86,9

02

449

,010

7

37,8

92

14,

511,

287

13,

790,

393

TO

TAL

22,

556,

242

37,

753,

345

42,

277,

297

18,

032,

290

29,

466,

475

47,

498,

766

4,4

96,1

28

3,9

54,6

37

6,4

44,1

97

2,0

06,5

68

45,

492,

198

40,

511,

770

23

Half

year

end

ed Ju

ne 3

0

Cla

ssC

omm

issi

on

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

miss

ion

rece

ived

from

re

-insu

rers

Une

arne

d co

mm

issi

onC

omm

issio

n fro

m

rein

sure

rs

Net

un

derw

ritin

g ex

pens

es

Ope

ning

Clo

sing

Ope

ning

Clo

sing

2016

2015

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

-- R

upee

s -

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

---

Dire

ct &

facu

ltat

ive

Fire

and

pro

pert

y da

mag

e 1

4,14

5,23

4 1

2,28

0,27

7 2

0,56

7,67

3 5

,857

,838

1

3,51

3,04

1 1

9,37

0,87

9 -

2,3

03,8

47

297

,799

2

,006

,048

1

7,36

4,83

1 2

3,19

2,69

8

Mar

ine,

avi

atio

n an

d tr

ansp

ort

5,2

13,2

57

1,1

89,2

23

1,3

83,5

20

5,0

18,9

60

5,3

92,3

20

10,

411,

280

- 5

20,5

94

266

,661

2

53,9

33

10,

157,

347

7,8

44,2

10

Mot

or 9

,667

,304

1

0,28

9,34

8 1

0,95

5,46

3 9

,001

,189

2

1,31

2,84

9 3

0,31

4,03

8 4

,496

,128

2

,415

,181

5

,430

,727

1

,480

,582

2

8,83

3,45

6 3

1,35

6,26

5

Misc

ella

neou

s 8

,924

,466

9

,266

,036

9

,370

,641

8

,819

,861

2

2,68

4,52

5 3

1,50

4,38

7 -

2,4

81,2

88

449

,010

2

,032

,278

2

9,47

2,10

9 3

1,73

0,92

9

TO

TAL

37,

950,

261

33,

024,

884

42,

277,

297

28,

697,

848

62,

902,

735

91,

600,

584

4,4

96,1

28

7,7

20,9

10

6,4

44,1

97

5,7

72,8

41

85,

827,

743

94,

124,

102

The

anne

xed

note

s fr

om 1

to 1

4 fo

rm a

n in

tegr

al p

art o

f the

se c

onde

nsed

inte

rim fi

nanc

ial s

tate

men

ts.

Chi

ef E

xecu

tive

Offi

cer

Cha

irman

Dire

ctor

Dire

ctor

Con

dens

ed In

teri

m S

tate

men

t of

Exp

ense

s (U

n-au

dite

d)fo

r th

e qu

arte

r an

d ha

lf ye

ar e

nded

June

30,

201

6


24

For the quarter ended For the half year endedJune 30,

2016Rupees

June 30, 2015

Rupees

June 30, 2016

Rupees

June 30, 2015

RupeesIncome from held for trading investments

Gain on sale of trading 71,581 (2,366) 262,965 (2,366)

Income from non-trading investments

Held to maturityReturn on government securities 2,475,831 2,089,151 4,700,985 3,990,280 Return on TDR's 1,370,577 751,223 1,612,467 1,342,863

Available-for-saleDividend income - - - -

3,846,408 2,840,374 6,313,452 5,333,143

Gain / (loss) on sale of non-trading investments - - - -

Gain / (loss) on revaluation of held for trading investments - - - -

Provision for Impairment in Value of Investments - - - - Less:Investment related expenses - - (30,055) (13,196)

Net investment income 3,917,989 2,838,008 6,546,362 5,317,581


Condensed Interim Statement of Investment Income (Un-audited)for the half year ended June 30, 2016


25

1 LEGAL STATUS AND NATURE OF BUSINESS

SPI Insurance Company Limited (the Company) is an unquoted public limited company incorporated in Islamabad, Pakistan on February 15, 2005 under the Companies Ordinance, 1984 vide incorporation no. 4217/20050201. 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, 1st Floor, Upper Mall, Lahore, Pakistan.

The Company has been allowed to work as Window Takaful Operator through License No.3 on November 20, 2014 by Securities and Exchange Commission of Pakistan under Window Takaful Rules, 2012 to carry on Islamic General Insurance in Pakistan . It has not transacted any business outside Pakistan.

2 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 the requirements of the Companies Ordinance, 1984, the Insurance Ordinance, 2000 and the SEC (Insurance) Rules, 2002 and the directives issued by SECP. Wherever the requirements of the Companies Ordinance, 1984, the Insurance Ordinance, 2000 and the SEC (Insurance) Rules, 2002 or directives issued by the Securities and Exchange Commission of Pakistan differ with the requirements of these standards, the requirements of the Companies Ordinance, 1984, the Insurance Ordinance, 2000 and the SEC (Insurance) Rules, 2002 or the requirements of the said directives take precedence.

2.1 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, 2015.

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.

The financial information have been presented in Pakistan rupee, which is also the Company’s functional currency.

2.3 SIGNIFICANT 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, 2015.

2.4 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, 2015.

2.5 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, 2015.

Notes To The Condensed Interim Financial Statements (Un-audited)for the half year ended June 30, 2016


26

3 AUTHORIZED SHARE CAPITAL

June 30,2016

December 31,2015

NoteJune 30,

2016 December 31,

2015(Number of Shares) Rupees Rupees

100,000,000 100,000,000 Ordinary shares of Rs. 10/- each 1,000,000,000 1,000,000,000

3.1 PAID-UP SHARE CAPITAL

Issued, subscribed and paid up capital:

Paid up capital for general insurance 200,000,000 200,000,000 Statutory fund for window takaful operations 3.1.1 50,000,000 50,000,000

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

7,150,000 - Ordinary shares of Rs. 10/- each issued as fully paid bonus shares 71,500,000 -

39,650,000 32,500,000 396,500,000 325,000,000

3.1.1 Amount of Rs 50 million is deposited as statutory reserves to comply with provisions of para 4 of Circular No 8 of 2014 read with section 11(c) of Takaful Rules, 2012 issued by Securities and Exchange Commission.

4 ACCRUED EXPENSES

Audit fee payable 180,000 800,000 Salaries wages and benefits payable 9,202,322 10,090,301 Utilities payable 155,366 449,598 Others 2,069,046 1,349,460

11,606,734 12,689,359

5 OTHER CREDITORS AND ACCRUALS

Commission payable 5,582,943 5,023,397 Government levies payable 5,513,357 4,033,200 Withholding tax payable 494,541 503,878 Others 1,768,008 1,682,225

13,358,850 11,242,700


27

Note June 30,

2016 Rupees

December 31, 2015

Rupees6 WINDOW TAKAFUL OPERATIONS (OPERATORS FUND - OF)

AssetsCash and bank deposits 15,642,358 3,489,964 Loan to employees 23,333 20,000 Investments 44,597,325 50,388,795 Current assets - others 51,587,390 54,639,113 Fixed assets 5,349,574 4,605,815

Total assets 117,199,980 113,143,687

Total liabilites - current 69,075,793 60,869,577

Profit/(Loss) from window takaful operations (4,149,923) 2,985,126

Detail of assets and liabilities of window takaful operations are stated in the annexed financial statements.

7 CONTINGENCIES AND COMMITMENTS

M/s Sialkot International Airport Limited have filed suit titled as SPI Insurance Company Limited Vs. Sialkot International Airport Limited. Sialkot International Airport Limited has also filed a case titled Sialkot International Airport Limited Vs. SPI Insurance Company Limited. Both cases are pending adjudication before the civil judges at Lahore. Both titled suits are in the preliminary stage. The legal advisor of the company is hopeful, “ that no losses to SPI insurance Company Limited are likely to arise from either of the two cases.”

There is no other known contingency or commitment as at June 30, 2016 (December 31, 2015: Nil).

There is no commitment as at June 30, 2016 (December 31, 2015: Nil).

8 INVESTMENTSThe investment comprise the following:

Held to maturityGovernment Securities 8.1 95,983,254 74,616,897

Available for saleOrdinary shares of listed companies 8.2 226,625 1,688,175 Investment in NAFA income opportunity fund - 16,287,997 Provision for impairment in value of investments (226,625) (445,175)

- 17,530,997

95,983,254 92,147,894

8.1 These securities are held in favor 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. 95.7 million (2015: Rs. 33.7 million with SBP and Rs. 40.3 million with NBP) carry mark-up ranging from 9.75% to 12.0% (2015: 9.75% to 12.0%) annually and would mature up to March 2025.

8.2 The market value of available for sale - equity as at June 30, 2016 is Rs. 21,045/- (December 31, 2015: Rs. 1,243,000/-).



28

Note June 30,

2016 Rupees

December 31, 2015

Rupees9 PREMIUM DUE BUT UNPAID

- Considered good 94,982,068 107,806,290 - Considered doubtful 10,125,608 9,146,964

105,107,676 116,953,254 Provision for doubtful balances 9.1 (10,125,608) (9,146,964)

94,982,068 107,806,290

9.1 Provision for doubtful balances

Opening provision (9,146,964) (5,704,136)Charge for the period / year (978,644) (3,442,828)

Closing provision (10,125,608) (9,146,964)

10 AMOUNTS DUE FROM OTHER INSURERS/ REINSURERS - UNSECURED

- Considered good 121,263,100 86,268,144 - Considered doubtful 17,738,082 17,001,980

139,001,182 103,270,124 Provision for doubtful balances 10.1 (17,738,082) (17,001,980)

121,263,100 86,268,144

10.1 Provision for doubtful balances

Opening provision (17,001,980) (15,237,314)Charge for the period (736,102) (1,764,666)

Closing provision (17,738,082) (17,001,980)

11 TRANSACTIONS WITH RELATED PARTIES

The related parties comprises of United Track Systems (Pvt.) Limited, Apna Micro Finance Bank Limited and Silk Bank 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 benefits fund. Amount due to / from and other significant transactions, other than those disclosed elsewhere in these financial statements, are as follows:

11.1 Transactions and balances with United Track Systems (Pvt.) Limited- associated company

Tracker charges 7,353,909 26,440,085


29

June 30, 2016

Rupees

December 31, 2015

Rupees11.2 Transactions and balances with Apna Micro Finance Bank Limited- Associated company

Transactions during the year/ period

Bank Charges 2,150 3,545 Profit on term deposit receipts 27,123 - Profit on bank deposits 59,832 92,251

Balances with associated company

Profit and loss sharing accounts 301,416 469,059 Accrued investment income 33,000 - Term deposits 5,100,000 - Current accounts 1,381,274 20,307

11.3 Transactions and balances with Silk Bank Limited- associated companyInsurance premium

Balance at beginning of the year/ period 20,373,889 12,294,584 Gross insurance premium written 16,141,315 50,637,419 (including administrative surcharge, government levies and policies stamps) Received / adjusted during the year/ period (16,977,303) (42,558,114)

Balance at end of the year/ period 19,537,901 20,373,889

Insurance claim expense

Outstanding claims at beginning of the year/ period 2,922,360 2,945,489 Gross claim expense for the year/ period 11,118,402 6,214,494 Claim paid during the year/ period (7,703,022) (6,237,623)

Outstanding claims at end of the year/ period 6,337,740 2,922,360

Other transactions during the year/ period

Bank charges 10,745 78,044 Profit on term deposit receipts 929,676 708,468 Profit on bank deposits 15,330 17,247

Balances with associated company

Term deposits 11,830,000 11,030,000 Profit and loss sharing accounts 46,962 909,661 Current accounts 11,380,462 8,068,558 Accrued investment income 103,856 516,699



30

June 30,2016

Rupees

December 31, 2015

Rupees11.4 Staff retirement gratuity fund

Contribution to defined benefit plan 1,500,000 3,200,000 Payable from defined benefit plan (12,996,103) (11,906,955)

11.5 Transaction with Key management personnel

Remuneration of key management personnel 29,666,610 61,104,082 Loan to key management personnel 1,480,002 669,800

12 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.

13 DATE OF AUTHORIZATION FOR ISSUE

These interim condensed financial statements have been authorized for issue on August 31, 2016 in accordance with a resolution of board of directors of the company.

14 GENERAL

Separate set of statements representing assets, liabilities, revenues and expenses of window takaful operations has been annexed to these financial statement as per the requirement of Takaful Rules, 2012.

Figures have been rounded up to the nearest rupee.



31

Delivering Growth

SPI INSURANCE COMPANY LIMITED (WINDOW TAKAFUL OPERATIONS)For the quarter and half year ended June 30, 2016

33

Auditors’ Review Report to the Members

Introduction

We have reviewed the accompanying;

a) condensed interim balance sheet;b) condensed interim profit and loss account;c) condensed interim statement of comprehensive income;d) condensed interim statement of changes in funds; e) condensed interim statement of cash flows;f) condensed interim statement of contributions ;g) condensed interim statement of claims;h) condensed interim statement of expenses; andi) condensed interim statement of investment income

of SPI Insurance Company Limited (Window takaful operations) as at June 30, 2016, and the related notes forming part thereof for the six-month period then ended (here-in-after referred to as the “condensed interim financial information”). Management is responsible for the preparation and presentation of this condensed 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 condensed financial information based on our review.

Scope of Review

We conducted our review in accordance with the 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 the 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 information as of and for the half year ended June 30, 2016 is not prepared, in all material respects, in accordance with the approved accounting standards as applicable in Pakistan for interim financial reporting.

The figures for the quarter ended June 30, 2015 and June 30, 2016 in condensed interim financial information have not been reviewed by us as we are required to review only the cumulative figures for the half year ended June 30, 2016.

_________________________ILYAS SAEED & CO. CHARTERED ACCOUNTANTSEngagement Partner; Irfan Ilyas

Place: LahoreDate: August 31, 2016

SPI Insurance Company LimitedWindow Takaful Operations

34

Note

June 30,2016

June 30,2016

June 30,2016

December 31,2015

---------------(Un-audited)--------------- (Audited)

------------------------Rupees------------------------Participants’ takaful fund

Operator’s fund Consolidated Consolidated

Shareholder’s fund

Statutory reserve 3 - 50,000,000 50,000,000 50,000,000

Accumulated profit / (loss) - (1,875,813) (1,875,813) 2,274,110

- 48,124,187 48,124,187 52,274,110

Waqf / participants’ takaful equity

Ceded money 4 500,000 - 500,000 500,000

Accumulated surplus / (deficit) 23,499,080 - 23,499,080 (434,482)

23,999,080 - 23,999,080 65,518

Underwriting provisions

Provision for outstanding claims (including IBNR) 37,227,836 - 37,227,836 19,238,156 Provision for unearned contribution 81,903,506 - 81,903,506 81,513,870

Rebate income unearned 4,034,991 - 4,034,991 626,255

Total underwriting provisions 123,166,333 - 123,166,333 101,378,281

Deferred liabilities

Staff retirement benefits - 751,176 751,176 448,008

Creditors and accruals

Amount due to other takaful / retakaful 24,140,934 - 24,140,934 1,203,696

Accrued expenses 5 - 6,556,375 6,556,375 7,601,681

Other creditors and accruals 6 36,830,156 61,768,243 98,598,398 103,088,404

60,971,090 68,324,618 129,295,708 111,893,781

TOTAL LIABILITIES 184,137,423 69,075,794 253,213,217 213,720,070

TOTAL EQUITY AND LIABILITIES 208,136,503 117,199,981 325,336,484 266,059,698

CONTINGENCIES AND COMMITMENTS - - - -


Condensed Interim Balance Sheet Un-audited)As At June 30, 2016

Chief Executive Officer Chairman

35

Director Director

Condensed Interim Balance Sheet Un-audited)As At June 30, 2016

Note

June 30,2016

June 30,2016

June 30,2016

December 31,2015

---------------(Un-audited)--------------- (Audited)------------------------Rupees------------------------

Participants’ takaful fund


Cash and bank deposits

Cash and other equivalent 400,900 343,719 744,619 449,468

Current and other accounts 8,497,367 7,268,639 15,766,006 21,047,970

Deposits maturing within 12 months 1,100,000 8,030,000 9,130,000 1,001,676

9,998,267 15,642,358 25,640,625 22,499,114

Loan to employees (un-secured) - 23,333 23,333 20,000

Investments 7 - 44,597,325 44,597,325 50,388,794

Current assets- others

Contribution due but unpaid 35,315,664 - 35,315,664 55,967,231

Amount due from other takaful/retakaful 8 88,689,880 - 88,689,880 61,733,202 Prepaid re-takaful contibution ceded 38,918,797 - 38,918,797 16,008,814 Deferred commission expense - 36,687,505 36,687,505 23,218,292

Advances, deposits and prepayments 510,245 3,049,058 3,559,303 2,556,578

Sundry receivables 29,403,924 11,850,828 41,254,752 29,061,859

192,838,510 51,587,391 244,425,901 188,545,975

Fixed assets

Tangible

Office improvements - 1,868,777 1,868,777 1,567,569

Furniture and fixture - 1,010,389 1,010,389 943,655

Office equipment - 1,142,342 1,142,342 1,062,650

Motor vehicles - 161,769 161,769 176,657

Computer equipment - 1,166,297 1,166,297 855,284

Tracking devices 5,299,726 - 5,299,726 -

5,299,726 5,349,574 10,649,300 4,605,815

TOTAL ASSETS 208,136,503 117,199,981 325,336,484 266,059,698



36

Quarter ended June 30

Fire and Property damage

Marine, Aviation

and Transport

Motor

Miscellaneous 2016

Aggregate2015

Aggregate

---------------------------------------------Rupees---------------------------------------------

Participants’ takaful fund Revenue Account

Net contribution revenue 7,048,105 6,950,246 17,309,961 5,569,200 36,877,512 2,204,953

Net claims (267,095) (449,828) (6,281,370) (7,076,345) (14,074,638) (1,422,255)

Direct expenses (566,953) (167,734) (556,504) (132,110) (1,423,300) (90,580)

Net rebate on re-takaful 1,746,432 79,530 133,415 235,829 2,195,206 231,942

Surplus / (Deficit) before investment income 7,960,489 6,412,214 10,605,502 (1,403,426) 23,574,779 924,060

Other income 29,671 -

Surplus / (deficit) for the period 23,604,451 924,060

Operator’s fund Revenue Account

Wakala fee 24,224,552 28,951,696

Commission expense (4,841,075) (5,574,648)

Management expenses (298,600) (504,587)

19,084,877 22,872,461


Other income 69,287 83,670

General & administrative expenses (24,400,320) (21,381,954)

Profit / (loss) for the period (2,926,160) 2,923,175


37


Half year ended June 30

Fire and Property damage

Marine, Aviation

and Transport

Motor

Miscellaneous 2016

Aggregate2015

Aggregate

---------------------------------------------Rupees---------------------------------------------

Participants’ takaful fund Revenue Account

Net contribution revenue 12,347,676 8,136,291 31,202,494 13,193,698 64,880,159 4,457,064

Net claims (3,925,352) (2,867,325) (17,445,002) (15,786,842) (40,024,521) (3,283,515)

Direct expenses (1,258,252) (407,011) (1,752,956) (328,360) (3,746,577) (90,580)

Net rebate on re-takaful 1,881,404 79,530 182,099 599,910 2,742,943 231,942

Surplus / (Deficit) before investment income 9,045,476 4,941,486 12,186,636 (2,321,594) 23,852,004 1,314,911

Other income 81,558 -

Surplus / (deficit) for the period 23,933,562 1,314,911

Surplus / (deficit) appropriation account:

Balance at the beginning of the period (434,482) 29,582

Surplus / (deficit) for the period 23,933,562 1,314,911

Balance at the end of the period 23,499,080 1,344,493

Operator’s fund Revenue Account

Wakala fee 56,155,887 33,202,610

Commission expense (10,851,877) (6,853,895)

Management expenses (700,000) (1,374,854)

44,604,010 24,973,861


Other income 89,425 471,719

General & administrative expenses (51,163,354) (22,872,232)


Profit / (loss) appropriation account:

Balance at the beginning of the period 2,274,110 (711,016)


Accumulated profit / (loss) for the period (1,875,813) 3,211,330




38

Condensed Interim Statement of Comprehensive Income (Un-audited)for the quarter and half year ended June 30, 2016

Quarter ended Half year endedJune 30,

2016June 30,

2015June 30,

2016June 30,

2015--------------------------Rupees --------------------------

Profit for the period 23,604,451 924,060 23,933,562 1,314,911

Other comprehensive income

Items that may be subsequently reclassified to profit or loss - - - - Items that may not be subsequently reclassified to profit or loss - - - -

Total comprehensive profit for the period 23,604,451 924,060 23,933,562 1,314,911



39

StatutoryReserves

AccumulatedSurplus/ (deficit)

Total

--------------------------(Rupees)----------------------Balance at January 1, 2015 50,000,000 (711,016) 49,288,984

Profit for the period - 3,922,346 3,922,346 Other comprehensive income for the period - - -

- 3,922,346 3,922,346

Balance at June 30, 2015 50,000,000 3,211,330 53,211,330

Balance at January 1, 2016 50,000,000 2,274,110 52,274,110

(Loss) for the period - (4,149,923) (4,149,923)Other comprehensive income for the period - - -

- (4,149,923) (4,149,923)

Balance at June 30, 2016 50,000,000 (1,875,813) 48,124,187

CededMoney

AccumulatedSurplus/ (deficit)

Total

--------------------------(Rupees)----------------------Balance at January 1, 2015 500,000 29,582 529,582

Surplus for the period - 1,314,911 1,314,911 Other comprehensive income for the period - - -

- 1,314,911 1,314,911

Balance at June 30, 2015 150,000,000 1,344,493 1,844,493

Balance at January 1, 2016 500,000 (434,482) 65,518

Surplus for the period - 23,933,562 23,933,562 Other comprehensive income for the period - - -

Balance at June 30, 2016 500,000 23,499,080 23,999,080


Condensed Interim Statement of Changes in Funds (Un-audited)for the quarter and half year ended June 30, 2016



40



June 30,2016

June 30,2016

June 30,2016

June 30,2015

----------------------------Rupees----------------------------Operating cash flowsa) Takaful activities Contribution received 104,885,397 - 104,885,397 62,643,004 Wakala fee received - 56,155,887 56,155,887 - Retakaful ceded (18,936,779) - (18,936,779) (4,071,789) Claims paid (22,514,182) - (22,514,182) (116,894) Retakaful and other recoveries received (26,477,337) - (26,477,337) (39,335,212) Commissions paid - (24,321,090) (24,321,090) (12,426,854) Rebate on retakaful 6,151,679 - 6,151,679 439,937 Other takaful payments (2,964,745) 200,360 (2,764,385) 490,266

Net cash flow from underwriting activities 40,144,033 32,035,157 72,179,190 7,622,458

b) Other operating activities General and administrative expenses paid - (51,163,354) (51,163,354) (24,247,086) Other operating payments (29,716,556) 16,520,937 (13,195,619) (3,072,166) Other operating receipts (13,438,360) 7,903,048 (5,535,313) 29,367,736 Loans and advances paid - (3,333) (3,333) - Net cash outflow from other operating activities (43,154,916) (26,742,702) (69,897,619) 2,048,484 Total cash flow from all operating activities (3,010,883) 5,292,455 2,281,571 9,670,942

Investment activities Profit/ return received - 2,319,996 2,319,996 1,348,998 Dividend received - - - (Payments) / Refund from investments - 5,791,469 5,791,469 (41,348,998) Fixed capital expenditure (6,000,000) (1,251,526) (7,251,526) (4,327,904)Total cash flow from investing activities (6,000,000) 6,859,939 859,939 (44,327,904)

Financing activities Statutory reserve - - - - Ceded money - - - -Total cash inflow from financing activities - - - -

Net cash inflow / (outflow) from all activities (9,010,883) 12,152,394 3,141,511 (34,656,962)Cash and cash equivalents at beginning of the period 19,009,150 3,489,964 22,499,114 51,247,304

Cash and cash equivalents at end of the period 9,998,267 15,642,358 25,640,625 16,590,342


41




June 30,2016

June 30,2016

June 30,2016

June 30,2015

----------------------------Rupees----------------------------Reconciliation to profit and loss account

Operating cash flows (3,010,883) 5,292,455 2,281,572 9,670,942 Depreciation / amortization expense (700,274) (507,767) (1,208,041) (109,127)Gratuity expense (303,168) (303,168) - Investment and other income - 2,319,996 2,319,996 1,348,998 Provision for doubtful debts - - - - Provision for unexpired risk - - - - Dividend income - - - - Increase / (decrease) in assets other than cash 59,369,754 (3,038,487) 56,331,267 72,938,547 (Increase) in liabilities other than running finance (31,725,034) (7,912,952) (39,637,986) (78,612,102)

Profit / (loss) for the Period 23,933,562 (4,149,923) 19,783,639 5,237,257

PTF balance 23,933,562 - 23,933,562 1,314,911 OF balance - (4,149,923) (4,149,923) 3,922,346

23,933,562 (4,149,923) 19,783,639 5,237,257

Definition of cash

Cash comprises of cash in hand, policy stamps, bond papers cheques in hand, bank balances and other deposits which are readily convertible to cash in hand and which are used 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 400,900 343,719 744,619 210,394 Current and saving accounts 8,497,367 7,268,639 15,766,006 15,378,272 Deposits maturing within 12 months 1,100,000 8,030,000 9,130,000 1,001,676

9,998,267 15,642,358 25,640,625 16,590,342




42

Busi

ness

und

erw

ritt

en in

side

Pak

ista

n

Qua

rter

end

ed Ju

ne 3

0

Cla

ssC

ontr

ibut

ion

Wri

tten

Wak

ala

fee

Une

arne

d co

ntri

butio

n re

serv

eC

ontr

ibut

ion

earn

edRe

-tak

aful

ce

ded

Prep

aid

re-t

akaf

ul

cont

ribu

tion

cede

dRe

-tak

aful

ex

pens

esN

et c

ontr

ibut

ion

reve

nue

Ope

ning

Clo

sing

Ope

ning

Clo

sing

2016

2015

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

R u

p e

e s

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

-

Dire

ct a

nd fa

cult

ativ

e

1Fi

re a

nd p

rope

rty

dam

age

23,

395,

349

9,3

58,1

40

32,

067,

095

31,

914,

914

14,

189,

390

17,

510,

567

16,

990,

354

27,

359,

636

7,1

41,2

85

7,0

48,1

05

(895

,510

)

2M

arin

e, a

viat

ion

and

tran

spor

t 7

,029

,682

2

,811

,872

2

,779

,751

2

,627

,574

4

,369

,987

3

,276

,103

9

63,2

76

6,8

19,6

39

(2,5

80,2

60)

6,9

50,2

46

(1,2

10,2

88)

3M

otor

24,

575,

438

9,8

30,1

76

43,

493,

828

39,

957,

897

18,

281,

193

497

,950

2

,712

,912

2

,239

,630

9

71,2

32

17,

309,

961

1,8

55,0

24

4M

iscel

lane

ous

5,5

60,9

11

2,2

24,3

64

10,

720,

962

7,4

03,1

21

6,6

54,3

88

905

,206

2

,679

,874

2

,499

,892

1

,085

,188

5

,569

,200

2

,455

,727

Gra

nd T

otal

60,

561,

380

24,

224,

552

89,

061,

636

81,

903,

506

43,

494,

958

22,

189,

826

23,

346,

416

38,

918,

797

6,6

17,4

46

36,

877,

512

2,2

04,9

53

Con

dens

ed In

teri

m S

tate

men

t of

Con

trib

utio

ns (

Un-

audi

ted)

for

the

quar

ter

and

half

year

end

ed Ju

ne 3

0, 2

016

43

Hal

f yea

r en

ded

June

30

Cla

ssC

ontr

ibut

ion

Wri

tten

Wak

ala

fee

Une

arne

d co

ntri

butio

n re

serv

eC

ontr

ibut

ion

earn

edRe

-tak

aful

ce

ded

Prep

aid

re-t

akaf

ul

cont

ribu

tion

cede

dRe

-tak

aful

ex

pens

esN

et c

ontr

ibut

ion

reve

nue

Ope

ning

Clo

sing

Ope

ning

Clo

sing

2016

2015

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

R u

p e

e s

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

-

Dire

ct a

nd fa

cult

ativ

e

1Fi

re a

nd p

rope

rty

dam

age

47,

148,

499

18,

859,

400

30,

261,

379

31,

914,

914

26,

635,

564

30,

095,

880

11,

551,

644

27,

359,

636

14,

287,

888

12,

347,

676

(422

,107

)

2M

arin

e, a

viat

ion

and

tran

spor

t 1

5,25

1,29

6 6

,100

,518

2

,861

,025

2

,627

,574

9

,384

,229

6

,125

,166

1

,942

,410

6

,819

,639

1

,247

,937

8

,136

,292

(2

,159

,937

)

3M

otor

65,

685,

809

26,

274,

324

33,

718,

553

39,

957,

897

33,

172,

141

3,0

62,1

95

1,1

47,0

82

2,2

39,6

30

1,9

69,6

47

31,

202,

494

2,76

0,79

4

4M

iscel

lane

ous

12,

304,

113

4,9

21,6

45

14,

672,

913

7,4

03,1

21

14,

652,

260

2,5

90,7

76

1,3

67,6

78

2,4

99,8

92

1,4

58,5

62

13,

193,

698

4,27

8,31

4

Gra

nd T

otal

140

,389

,717

5

6,15

5,88

7 8

1,51

3,87

0 8

1,90

3,50

6 8

3,84

4,19

4 4

1,87

4,01

7 1

6,00

8,81

4 3

8,91

8,79

7 1

8,96

4,03

4 6

4,88

0,16

0 4

,457

,064

The

anne

xed

note

s fr

om 1

to 9

form

an

inte

gral

par

t of t

hese

con

dens

ed in

terim

fina

ncia

l sta

tem

ents

.

Con

dens

ed In

teri

m S

tate

men

t of

Con

trib

utio

ns (

Un-

audi

ted)

for

the

quar

ter

and

half

year

end

ed Ju

ne 3

0, 2

016

Chi

ef E

xecu

tive

Offi

cer

Cha

irman

Dire

ctor

Dire

ctor


44

Con

dens

ed In

teri

m S

tate

men

t of

Cla

ims

(Un-

audi

ted)

for

the

quar

ter

and

half

year

end

ed Ju

ne 3

0, 2

016

Busi

ness

und

erw

ritt

en in

side

Pak

ista

n

Qua

rter

end

ed Ju

ne 3

0

Cla

ss C

laim

s pa

id

Out

stan

ding

cla

ims

Cla

ims

expe

nse

Re-

taka

ful

and

othe

r re

cove

ries

rece

ived

Re-

taka

ful a

nd o

ther

re

cove

ries

in r

espe

ct o

f ou

tsta

ndin

g cl

aim

s

Re-

taka

ful

and

othe

r re

cove

ries

re

venu

e

Net

cla

ims

expe

nse

Ope

ning

C

losi

ng

Ope

ning

C

losi

ng

2016

2015

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

R u

p e

e s

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

-

Dire

ct a

nd fa

cult

ativ

e

1Fi

re a

nd P

rope

rty

Dam

age

4,8

70,3

97

9,2

66,2

51

4,8

09,6

28

413

,774

1

46,6

79

- -

146

,679

2

67,0

95

-

2M

arin

e, A

viat

ion

and

Tran

spor

t (1

19,6

93)

7,1

02,5

90

7,6

72,1

11

449

,828

-

- -

- 4

49,8

28

-

3M

otor

5

,403

,149

1

1,00

7,19

3 1

2,05

5,46

9 6

,451

,425

1

70,0

55

- -

170

,055

6

,281

,370

2

44,6

67

4M

iscel

lane

ous

3,3

22,0

12

8,7

73,6

88

12,

690,

628

7,2

38,9

52

162

,607

-

- 1

62,6

07

7,0

76,3

45

1,1

77,5

88

Gra

nd to

tal

13,

475,

865

36,

149,

722

37,

227,

836

14,

553,

979

479

,341

-

- 4

79,3

41

14,

074,

638

1,4

22,2

55

45

Con

dens

ed In

teri

m S

tate

men

t of

Cla

ims

(Un-

audi

ted)

for

the

quar

ter

and

half

year

end

ed Ju

ne 3

0, 2

016

Hal

f yea

r en

ded

June

30

Cla

ss C

laim

s pa

id

Out

stan

ding

cla

ims

Cla

ims

expe

nse

Re-

taka

ful

and

othe

r re

cove

ries

re

ceiv

ed

Re-

taka

ful a

nd o

ther

re

cove

ries

in r

espe

ct o

f ou

tsta

ndin

g cl

aim

s

Re-

taka

ful

and

othe

r re

cove

ries

re

venu

e

Net

cla

ims

expe

nse

Ope

ning

C

losi

ng

Ope

ning

C

losi

ng

2016

2015

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

R u

p e

e s

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

-

Dire

ct a

nd fa

cult

ativ

e

1Fi

re a

nd P

rope

rty

Dam

age

7,0

51,3

93

7,7

88,9

90

4,8

09,6

28

4,0

72,0

31

146

,679

-

- 1

46,6

79

3,9

25,3

52

495

,200

2M

arin

e, A

viat

ion

and

Tran

spor

t 4

94,5

57

5,2

99,3

43

7,6

72,1

11

2,8

67,3

25

- -

- -

2,8

67,3

25

-

3M

otor

7

,200

,716

1

,641

,128

1

2,05

5,46

9 1

7,61

5,05

7 1

70,0

55

- -

170

,055

1

7,44

5,00

2 6

23,6

67

4M

iscel

lane

ous

7,7

67,5

16

4,5

08,6

95

12,

690,

628

15,

949,

449

162

,607

-

- 1

62,6

07

15,

786,

842

2,1

64,6

48

Gra

nd to

tal

22,

514,

182

19,

238,

156

37,

227,

836

40,

503,

862

479

,341

-

- 4

79,3

41

40,

024,

521

3,2

83,5

15

The

anne

xed

note

s fr

om 1

to 9

form

an

inte

gral

par

t of t

hese

con

dens

ed in

terim

fina

ncia

l sta

tem

ents

.

Chi

ef E

xecu

tive

Offi

cer

Cha

irman

Dire

ctor

Dire

ctor


46

Con

dens

ed In

teri

m S

tate

men

t of

Exp

ense

s (U

n-au

dite

d)fo

r th

e qu

arte

r an

d ha

lf ye

ar e

nded

June

30,

201

6

Busi

ness

und

erw

ritt

en in

side

Pak

ista

n

Qua

rter

end

ed Ju

ne 3

0

Cla

ssC

omm

issi

on

paid

or

paya

ble

Def

erre

d co

mm

issi

on

Net

co

mm

issi

on

expe

nse

Dire

ct

expe

nses

Und

erw

ritin

g ex

pens

esRe

bate

on

re-t

akaf

ulU

near

ned

com

mis

sion

N

et r

ebat

e on

re

-tak

aful

Net

tak

aful

exp

ense

s

Ope

ning

C

losi

ng

Ope

ning

C

losi

ng

2016

2015

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

-- -

- -

- -

- -

- -

- R

u p

e e

s -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- --

- -

- -

Dire

ct a

nd fa

cult

ativ

e

1Fi

re a

nd P

rope

rty

Dam

age

4,8

80,0

40

14,

498,

848

16,

353,

866

3,0

25,0

22

566

,953

3

,591

,975

3

,025

,685

2

,066

,664

3

,345

,917

1

,746

,432

1

,845

,543

1

,009

,357

2M

arin

e, A

viatio

n an

d T

rans

port

1,3

27,2

33

1,5

12,2

47

1,8

62,9

98

976

,482

1

67,7

34

1,1

44,2

16

96,

084

- 1

6,55

4 7

9,53

0 1

,064

,686

2

49,1

46

3M

otor

3

,418

,840

1

2,44

1,21

5 1

4,60

2,67

6 1

,257

,379

5

56,5

04

1,8

13,8

83

- 4

16,2

32

282

,817

1

33,4

15

1,6

80,4

68

2,0

71,5

23

4M

iscel

lane

ous

549

,070

2

,901

,087

3

,867

,965

(4

17,8

08)

132

,110

(2

85,6

98)

226

,301

3

99,2

31

389

,703

2

35,8

29

(52

1,52

7) 2

,103

,259

Gra

nd to

tal

10,

175,

183

31,

353,

397

36,

687,

505

4,8

41,0

75

1,4

23,3

01

6,2

64,3

76

3,3

48,0

70

2,8

82,1

27

4,0

34,9

91

2,1

95,2

06

4,0

69,1

70

5,4

33,2

85

47

Con

dens

ed In

teri

m S

tate

men

t of

Exp

ense

s (U

n-au

dite

d)fo

r th

e qu

arte

r an

d ha

lf ye

ar e

nded

June

30,

201

6

Hal

f yea

r en

ded

June

30

Cla

ssC

omm

issi

on

paid

or

paya

ble

Def

erre

d co

mm

issi

on

Net

co

mm

issi

on

expe

nse

Dire

ct

expe

nses

Und

erw

ritin

g ex

pens

esRe

bate

on

re-t

akaf

ulU

near

ned

com

mis

sion

N

et r

ebat

e on

re

-tak

aful

Net

tak

aful

exp

ense

s

Ope

ning

C

losi

ng

Ope

ning

C

losi

ng

2016

2015

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

-- -

- -

- -

- -

- -

- R

u p

e e

s -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- --

- -

- -

Dire

ct a

nd fa

cult

ativ

e

1Fi

re a

nd P

rope

rty

Dam

age

10,

298,

294

11,

630,

513

16,

353,

866

5,5

74,9

41

1,2

58,2

51

6,8

33,1

92

4,9

42,9

86

284

,335

3

,345

,917

1

,881

,404

4

,951

,788

1

,646

,591

2M

arin

e, A

viatio

n an

d T

rans

port

3,0

53,4

98

846

,478

1

,862

,998

2

,036

,978

4

07,0

11

2,4

43,9

89

96,

084

- 1

6,55

4 7

9,53

0 2

,364

,459

2

49,1

46

3M

otor

9

,477

,543

7

,808

,952

1

4,60

2,67

6 2

,683

,819

1

,752

,956

4

,436

,775

4

64,9

16

- 2

82,8

17

182

,099

4

,254

,676

2

,289

,348

4M

iscel

lane

ous

1,4

91,7

55

2,9

32,3

49

3,8

67,9

65

556

,139

3

28,3

60

884

,499

6

47,6

93

341

,920

3

89,7

03

599

,910

2

84,5

89

2,5

27,4

48

Gra

nd to

tal

24,

321,

090

23,

218,

292

36,

687,

505

10,

851,

877

3,7

46,5

78

14,

598,

455

6,1

51,6

79

626

,255

4

,034

,991

2

,742

,943

1

1,85

5,51

2 6

,712

,533

The

anne

xed

note

s fr

om 1

to 9

form

an

inte

gral

par

t of t

hese

con

dens

ed in

terim

fina

ncia

l sta

tem

ents

.

Chi

ef E

xecu

tive

Offi

cer

Cha

irman

Dire

ctor

Dire

ctor


48

For the quarter ended For the half year endedJune 30,

2016June 30,

2015June 30,

2016June 30,

2015----------------------------Rupees----------------------------

Income from held for trading investments - - - -

Income from non-trading investments - - - -

Held to maturityReturn on fixed securities 2,319,996 1,348,998 2,319,996 1,348,998

Gain / (loss) on sale of investments - - - -

Gain/(loss) on revaluation of investments - - - -

Provision for impairment in value of investments - - - -

Investment related expenses - - - -

2,319,996 1,348,998 2,319,996 1,348,998


Condensed Interim Statement of Investment Income (Un-audited)for the quarter and half year ended June 30, 2016


49

1 STATUS AND NATURE OF BUSINESS

SPI Insurance Company Limited (the Company) is an unquoted public limited company incorporated in Islamabad, Pakistan on February 15, 2005 under the Companies Ordinance, 1984 vide incorporation no. 4217/20050201. 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, 1st Floor, Upper Mall, Lahore, Pakistan.

The Company has been allowed to work as Window Takaful Operator through License No.3 on November 20, 2014 by Securities and Exchange Commission of Pakistan under Window Takaful Rules, 2012 to carry on Islamic General Insurance in Pakistan . It has not transacted any business outside Pakistan.

For the purpose of carrying on the takaful business, the company has formed a waqf for participants’ equity fund. The Waqf namely SPI Insurance Company Limited (Window Takaful Operations)-Waqf Fund (hereafter referred to as participant takaful fund (PTF)) on October 29, 2014 under a trust deed executed by the Company with a ceded money of Rs.500,000/- . Waqf deed also governs the relationship of shareholders and policy holders for management of takaful operations, investment policy holders funds and investment of shareholders’ funds approved by shariah advisor of the company.

2 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 the requirements of the Companies Ordinance, 1984, the Insurance Ordinance, 2000 and the SEC (Insurance) Rules, 2002 and the directives issued by SECP. Wherever the requirements of the Companies Ordinance, 1984, the Insurance Ordinance, 2000 and the SEC (Insurance) Rules, 2002 or directives issued by the Securities and Exchange Commission of Pakistan differ with the requirements of these standards, the requirements of the Companies Ordinance, 1984, the Insurance Ordinance, 2000 and the SEC (Insurance) Rules, 2002 or the requirements of the said directives take precedence.

2.1 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, 2015.

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 information have been presented in Pakistan rupee, which is also the Company’s functional currency. All financial information presented in Pakistan rupees are rounded off to nearest rupees unless otherwise stated.

2.4 SIGNIFICANT 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, 2015.

Notes To The Condensed Interim Financial StatementsFor the half year ended June 30, 2016 (Un-audited)


50

2.5 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, 2015.

2.6 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, 2015.

NoteJune 30,

2016 Rupees

December 31,2015

Rupees3 STATUTORY RESERVES

Statutory reserves 3.1 50,000,000 50,000,000

3.1 Amount of Rs 50 million is deposited as statutory reserves to comply with provisions of para 4 of Circular No 8 of 2014 read with section 11(c) of Takaful Rules, 2012 issued by Securities and Exchange Commission which states that “Every insurer who is interested to commence window takaful business shall transfer an amount of not less than 50.million Rupees to be deposited in a separate bank account for window takaful business duly maintained in a scheduled bank” .

4 CEDED MONEY

Waqf money 4.1 500,000 500,000

4.1 The amount of Rs.500,000/- has been set a part for Waqf /Participant takaful fund as waqf money according to the waqf deed prepared for the purpose of creation of waqf /participant takaful fund.

5 ACCRUED EXPENSES

Salaries and wages payable 5,568,375 7,375,854 Audit fee payable 20,000 100,000 Rent payable - 55,720 Utilities payable 185,500 70,107 Others 782,500 -

6,556,375 7,601,681

6 OTHER CREDITORS AND ACCRUALS Participants’ takaful fundGovernment levies payable 15,132,552 15,744,419 Wakala fee payable to OF 5,052,950 8,323,778 Others 16,644,654 26,200,319

36,830,156 50,268,516


51

NoteJune 30,

2016 Rupees

December 31,2015

RupeesOPERATOR’S FUNDCommission payable 18,797,650 21,868,310 WHT payable 193,629 255,766 SPI insurance company 13,549,747 30,695,812 Others 29,227,217 -

61,768,243 52,819,888

7 INVESTMENTSThe investment comprise the following:

Available for saleNBP Fullerton asset management limited 7.1 26,003,526 24,403,052

Held to maturityAl - Meezan investment management limited 7.2 18,593,799 25,985,742

44,597,325 50,388,794

7.1 These Investments comprise of NAFA Funds (NAFA Islamic Income Fund). These funds have face value of Rs. 26 million (2015: 24.4 million). Since these funds are Islamic in nature, so markup percentage is not pre-decided.

7.2 These Investments comprise of Meezan Funds (CDC Trustee Meezan Islamic Fund and Meezan Preservation Fund). These funds have face value of Rs. 18.6 million (2015: 26 million). Since these funds are Islamic in nature, so markup percentage is not pre-decided. The maturity of these funds is up to February 2017.

8 AMOUNT DUE FROM OTHER TAKAFUL / RETAKAFUL

Considered good 88,689,880 61,733,202 Considered doubtful - -

88,689,880 61,733,202

9 GENERAL

- Corresponding figures have been re-classified and re-arranged, whenever necessary for better presentation. There have been no significant reclassifications/ restatements in the financial statements.

- Figures have been rounded off to the nearest rupees.




52

Notes

HALF YEARLY REPORT2016

Contact Information

Annual Report 2015




DeliveringGROWTH


Contact Information

2016



SPI Insurance Company LimitedHalf yearly report

Contact Information - SPI Insurance Company...

Documents

Transcript of Contact Information - SPI Insurance Company...