Lahore, Adamjee Insurance Company Limited disclosed its financial outcomes for the year ending December 31, 2023, in a statement provided to the Pakistan Stock Exchange. The announcement came following a board meeting on March 26, 2024, at the company’s Lahore office. A final cash dividend of Rs. 1.50 per share, amounting to a 15% payout, was declared, supplementing an identical interim dividend previously distributed. The company confirmed no issuance of bonus or right shares.
The financial statements reveal a pre-tax profit of Rs. 3,912,267,000 for 2023, marking an increase from Rs. 3,447,208,000 in 2022. Despite this growth, the net profit after tax decreased to Rs. 2,262,030,000, down from Rs. 2,585,013,000 the previous year. Earnings per share also saw a decline from Rs. 7.39 to Rs. 6.46.
The detailed unconsolidated profit and loss statement illustrated a surge in net insurance premium revenue to Rs. 19,319,089,000 from Rs. 16,980,105,000. However, insurance claims and acquisition expenses also rose significantly, alongside management expenses, impacting the underwriting results negatively when compared to the previous year. Despite these challenges, investment income and other revenues provided a substantial boost, resulting in a pre-tax profit of Rs. 3,912,267,000, an improvement over the previous year's Rs. 3,147,208,000.
The consolidated financials depicted a broader scope of the company's performance, with net insurance premium revenue climbing to Rs. 41,976,789,000. Nonetheless, the increase in claims and expenses overshadowed this growth, leading to a negative underwriting result. Investment income and other positive financial activities, however, contributed to a pre-tax profit of Rs. 5,000,279,000, compared to Rs. 3,261,158,000 in 2022. The profit after tax for the consolidated entity was reported at Rs. 2,716,915,000, slightly higher than the previous year's Rs. 2,386,355,000, with earnings per share increasing to Rs. 7.50 from Rs. 6.69.
Adamjee Insurance's Annual General Meeting is scheduled for April 26, 2024, at the Nishat Hotel, Gulberg, Lahore, and will be accessible via a Zoom link. The entitlement to the final dividend will be accorded to shareholders listed in the Register of Members as of April 18, 2024, with the Share Transfer Books closed from April 19 to April 26, 2024.