LAHORE: The country’s non-life insurance sector witnessed 140 per cent growth YoY in second quarter of calendar year 2015.
Major listed non-life insurance companies Adamjee Insurance (AICL), Jubilee General Insurance (JGICL) and EFU General Insurance (EFUG), posted impressive earnings growth of 298%, 178% and 106%, respectively. These players have a combined share of over 58% in total profitability of non-life insurance sector. Investment income that contributes significantly to the earnings of non-life insurance companies grew by 139% to Rs3.7b, driving the overall profitability of the sector in 2Q2015. Higher dividend income and capital gains on equity portfolio contributed to investment income.
AICL’s investment income grew significantly by 172% to Rs859m in 2Q2015 driving the overall investment income of sector. AICL investment income contributes around 23% to the total investment income of sector.
Underwriting business of the sector also grew by 79% to Rs1.3b led by improving macros, increasing car business and better security situation. Within the overall sector, AICL’s underwriting income rose substantially to Rs230mn in 2Q2015 vs. loss of Rs4mn in 2Q2014. EFUG and JGICL also posted growth of 20% and 598% in underwriting income which grew to Rs418mn and Rs122mn, respectively.
