Jubilee Life Insurance Company Limited 2019 Analyst Briefing Performance Review
Jubilee Life Insurance Company Limited, a market leader in Pakistan's private sector, presented a positive performance review for 2019. The company showcased strong financials, including significant growth in market share and robust net income. With a focus on integrity, passion, excellence, and teamwork, Jubilee Life remains a key player in the insurance industry.
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JUBILEE LIFE INSURANCE COMPANY LIMITED Analyst Briefing Sep. 30, 2019 Performance Review & Outlook
Agenda Company Overview Financials Performance Review Future Outlook Integrity Passion Excellence Teamwork 2
Company Overview Incorporated in Pakistan on June 29, 1995 as a Public Limited Company. The Company is engaged in life insurance, carrying on non- participating business. JLICL is a subsidiary of Aga Khan Fund for Economic Development. Company has established a Shareholders fund and following statutory funds in respect of each class of its life insurance business: Overseas Group Life & Health Business Accident & Health Family Takaful Individual Life Unit Linked Individual Family Takaful Group Family Takaful Conventional Business Accident & Health Jubilee Life has been assigned Insurer Financial Strength (IFS) rating of AA+ (Double A Plus) with Stable outlook by JCR-VIS Credit Rating Co. Ltd. Integrity Passion Excellence Teamwork 3
Best in the business! Market leader in Private Sector As of 2018, market share grew to 46.97% vs 43.68% in 2017. Market share of IL Regular (first year) was 49.6% in 2018. Total 46.97% Conventional Individual Life Business In this category, market share increased to 51.73% in 2018. Conventional 51.73% Window Takaful Operations Launched in 2015, JLICL became the market leader with a slice of 40.43% of the pie. Takaful 40.43% Group Life & Health Business JLICL is also the market leader in Group Life & Group Health with market share of 43.49% as of 2018. GL & GH 43.49% Integrity Passion Excellence Teamwork 4
Financial Snapshot Amount in PKR mn 9MCY19 9MCY18 3QCY19 3QCY18 Net premiums / contributions revenue Investment income 35,339 8,814 36,026 5,015 11,119 3,363 11,787 1,809 Net realised fair value (loss) / gain on financial assets (1,468) 655 (1,095) (208) Net fair value loss on financial assets at FVPL (5,961) (2,489) (1,583) (1,899) Net income 36,956 39,361 11,879 11,540 Insurance benefits 16,638 12,262 5,382 4,086 Net Insurance Benefits 15,788 11,584 5,108 3,839 Net change in insurance liabilities (other than outstanding claims) Acquisition expenses Marketing and administration expenses 9,967 16,201 3,261 3,895 6,442 2,223 6,833 2,045 2,034 650 2,334 611 Total Expenses 18,655 25,107 5,948 6,847 Results of operating activities 2,478 2,624 842 852 Profit before tax for the period 2,486 2,631 842 854 Profit after tax for the period 1,559 1,880 579 599 Earnings per share - Rupees 19.65 23.70 7.30 7.55 Integrity Passion Excellence Teamwork 6
Net Premiums In 3QCY19, net premium went Net premiums (PKR mn) down by 5.7% to PKR 11.1 bn 40,000 36,026 35,339 35,000 compared to PKR 11.8 bn in 30,000 3QCY18. 25,000 20,000 15,000 11,787 11,119 Despite challenging macro 10,000 5,000 economic conditions, the 0 9MCY19 9MCY18 3QCY19 3QCY18 company managed to close at Million Rs PKR 35.4 billion in 9MCY19 60,000 50,671 compared to PKR 36.0 billion 50,000 45,906 SPLY. 36,988 40,000 29,121 30,000 21,086 As of December 2018, company 20,000 16,350 posted a 5 year CAGR of 25.3% 10,000 in net premium. 0 2013 2014 2015 2016 2017 2018 Premium - net of reinsurance/retakaful Integrity Passion Excellence Teamwork 8
Premiums Segment Wise Premium (PKR mn) Segment Breakup (3QCY19) Overseas Group Life & Health Business 3% Individual Life Unit Linked 22,850 Individual Family Takaful 1% Accident & Health Business 11% 25,487 7,160 6,539 Individual Family Takaful Accident & Health Business 3,964 2,884 1,197 928 Conventional Business Conventional Business 20% Individual Life Unit Linked 65% 168 190 Others 9MCY19 9MCY18 Integrity Passion Excellence Teamwork 9
Investments Investment performance Current portfolio 9MCY19 9MCY18 Term Deposits 7% Open Ended Mutual Funds 0% 8,814 Equity Securities 34% Debt Securities 7% 5,015 655 (1,468) (2,489) (5,961) Investment income Net Realized fair value (losses)/ gain on financial assets Net fair value loss on financial assets at fair value through profit or loss Government Securities 52% Integrity Passion Excellence Teamwork 10
Key ratios 50% 45% 45% 40% 35% 32% 30% 25% 19% 20% 18% 15% 10% 6% 6% 5% 4% 5% 0% Profit After Tax / Net Premium Net Insurance Benefits / Net Premium Marketing and Administration Expenses / Net Premium Acquisition Expenes / Net Premium 9MCY19 9MCY18 Integrity Passion Excellence Teamwork 11
Future Outlook Economic environment and corresponding volatility in markets. Impact of international regulations (FATF, CFT). Constraints Increasing regulatory & compliance requirements. Strengthening of company s sales force. Augmentation of product propositions. Strategy Utilization of technology for customer services. Implementation of IFRS 17. Integrity Passion Excellence Teamwork 12
