3rd Quarter Report 2017 - SPI Insurance Company Limited · NIB Bank Limited SILKBANK Limited ... Soneri Bank Limited State Bank of Pakistan Tameer Microﬁnance Bank Limited The Bank

3rd QUARTER REPORT 2017

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)

Condensed Interim Financial Position

Condensed Interim Profit and Loss Account

Condensed Interim Statement of Comprehensive Income

Condensed Interim Statement of Cash Flows

Condensed Interim Statement of Changes in Equity

Notes To The Condensed Interim Financial Statements

10

11

12

13

15

16

FINANCIAL STATEMENTS (Window Takaful Operations)

26

27

28

29

31

32

Condensed Interim Financial Position

Condensed Interim Profit and Loss Account

Condensed Interim Statement of Comprehensive Income

Condensed Interim Statement of Cash Flows

Condensed Interim Statement of Changes in Funds


Inside SPI Insurance Company Limited

Business Report

SPI Insurance Company Limited3rd Quarter Report 2017

2

Company Information

Chairman

Mr. Aziz Ullah Memon

Managing Director & Chief Executive

Mian M. A. Shahid

Directors

Mr. Mohammad Asghar

Mr. Abdul Majeed

Mr. Uzman Naveed Chaudhary

Mr. Muhammad Saleem Sheikh

Mr. Khurram Khan

Underwriting Committee

Mr. Muhammad Akram Shahid (Chairman)

Mr. Abdul Majeed (Member)

Mr. Naeem Tariq (Member)

Mr. Imtiaz Ali (Secretary)

Claim Settlement Committee:

Mr. Uzman Naveed Chaudhry (Chairman)

Mr. Muhammad Akram Shahid (Member)

Mr. Naeem Tariq (Member/Secretary)

Reinsurance & Co-insurance Committee:


Mr. Abdul Majeed (Member)

Mr. Faisal Akbar (Member/Secretary)

Nominations Committee

Mr. Azizullah Memon (Chairman)


Mr. Muhammad Saleem Sheikh (Member)

Mr. Noshad Ahmed (Secretary)

Investment Committee:


Mr. Azizullah Memon (Member)

Mr. Naeem Tariq (Member/ Secretary)

Audit Committee:

Mr. Mohammad Asghar (Chairman)

Mr. Muhammad Saleem Sheikh (Member)

Mian Mohsin Aslam (Secretary)

Mr. Khurram Khan (Member)

Risk Management & Compliance Committee:

Mr. Uzman Naveed Chaudhry (Chairman)

Mr. Azizullah Memon (Member)

Mr. Naeem Tariq (Member)

Mr. Faisal Akbar (Secretary)

Ethics, Human Resource & Remuneration Committee:

Mr. Muhammad Saleem Sheikh (Chairman)


Mr. Mohammad Asghar (Member)

Mr. Shahid Malik (Secretary)

3

Company Information

Chief Financial Officer

Mr. Naeem Tariq

Company Secretary

Mr. Noshad Ahmed

Chief Internal Auditor

Mian Mohsin Aslam

Auditors

M/s RSM Avais Hyder Liaquat Nauman

Chartered Accountants

Tax Consultant

M/s Muhammad Bilal & Company

Chartered Accountants

Legal Advisors

M/s Mandviwalla & Zafar

M/s Zeeshan Abdullah

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

4

Key Management Personnel

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)

Head of Health Mr. Nasir Abbas 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

Chief Operating Officer & Head of WTO Mr. Faisal Rashid

Head of Underwriting Mr. Muzammil Bashir (ACII)

Chief Manager Accounts Mr. Ghulam Hassan Chauhdary


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

Directors’ Review Report to the MembersDear Fellow Members!On behalf of the Board of Directors, I am pleased to present the third quarter review report of the SPI Insurance Company Limited together with the un-audited Financial Statements along with Window Takaful Operations for the nine months ending September 30, 2017.

Financial HighlightsThe Company performance remained satisfactory during the third quarter ended September 30, 2017. In Conventional insurance business the gross premium stood at Rs.513.10 million as against Rs. 505.62 million for the same period of last year. The net premium revenue is Rs.410.25 million as compared to Rs.403.67 million in the corresponding period of year. The underwriting profit registered at Rs.107.27 million as compared to Rs. 126.63 million in the year, 2016. The net claims stood at Rs.127.37 million as against Rs.129.92 million for the same period ending September 30, 2016.The management and other expenses showed a growth of 14.03% as compared to last year. The investment and other income registered is Rs.12.44 million as against Rs.13.57 million in the year 2016. Accordingly, pretax profit posted at Rs.26.40 million as compared to profit of Rs.44.94 million earned by Company for the same period last year as a result the earning per share lowered to Rs.0.57 as compared to Rs.1.13 in the year 2016.The written contribution under Window Takaful Operations for the period ended September 30, 2017 was Rs.191.24 million as against Rs.195.26 million in the preceding year while net contribution revenue was Rs.28.21 million as compared to Rs.80.17 million in last year. The net claims expenses Rs.49.95 million as on September 30, 2017 as against Rs.55.34 million on September 30, 2016. The commission expenses posted at Rs.42.11 million as against Rs.22.01 million in last year. The underwriting results showed loss of Rs.8.41 million as against Rs.26.82 million profits in the year 2016 in Participants Takaful fund. The management and other expenses registered at 57.92 million as against Rs.72.64 million showing decrease of 20.26% as compared to last year. Accordingly, Participants Takaful fund showing loss Rs.8.18 million as against Rs.26.94 million profit in the year 2016. The deficit arising from operators fund was Rs.8.28 million as against Rs.8.63 million in the year 2016. Significant increase is shown in operating results during the nine months ended September 30, 2017

Conventional Insurance: Premium Written 513,106 505,620Net Premium revenue 410,245 403,671Net Claims 127,370 129,928Investment and other Income 12,447 13,757Net Commission 61,025 42,981Management & other expenses 186,626 168,868Underwriting Result 107,272 126,632Profit / (Loss) before tax 43,551 67,017

Window Takaful Operations:Contribution Written 191,241 195,265Net Contribution revenue 28,213 80,177Wakala Fee 88,390 83,594Net Claims 49,922 55,345Investment and other Income 3.35 2.42Net Commission 42,110 22,012Management & other expenses 57,916 72,636Surplus/ (Deficit) in PTF (8,188) 26,943(Deficit)/Surplus in OPF (8,285) (8,634)

Consolidated ResultsProfit before tax 43,551 67,017Profit after tax 26,404 44,950E.P.S 0.57 1.13

Credit RatingThe Pakistan Credit Rating Agency Limited (PACRA) has upgraded the Insurer Financial Strength (IFS) of our company to “A” rating with (stable outlook) vide letter No. PPL FY-18-493 dated October 02, 2017.

ISO 9001:2008 CertificationDue to overall performance during the 2016 ISOQAR Limited has approved ISO 9001:2008 in compliance with their requirement and has issued the said certificate of registration.

Right Shares issueRetained earnings as at September 30, 2017 is Rs.46,618,009/- as compared to Rs.20,213,300/- at December 31, 2016. The Directors have recommended to increase the paid up capital for a sum of Rs.40 million out of the net profit of Rs.46,618,009/- as on 30th September 2017 by issuance of 8.6957 bonus shares for every 100 existing shares (8.6957%) to the shareholders whose names appear in the share register of the company at the close of business as on November 14, 2017. Accumulated profit at the commencement of the year 20,213,300Comprehensive income for the period ended September 30, 2017 26,404,709Amount available for appropriation 40,000,000The Directors recommend that this amount be appropriated in the following manner:Less: Appropriation Transfer to the proposed bonus issue (40,000,000) Profit carried forward 6,618,009

Future OutlookThe Company's performance during three quarters has shown a steady growth. The Capital requirement of Rs.500 million has been accomplished during the period since all the shareholders have contributed towards the same.PACRA has upgraded our IFC rating from A- to “A” with stable outlook based on the management's ability to capitalize on its brand and group's well-built platform for business expansion. All these positive indicators might result into better performance at the close of the year 2017.

Appreciation and AcknowledgementI 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. I would also like to take this opportunity to extend our thanks to valued customers and the shareholders for reposing their confidence. We also appreciate the efforts of the management and employees for their hard work and dedication towards the consistent growth of the Company.

For and on behalf of the Board of Directors

Muhammad Akram ShahidDirector & Chief ExecutiveKarachi: October 26, 2017

September 30,2017 September 30, 2016(Rupees in thousands)

6


7

57.9272.6420.26%

14

Delivering Growth

FINANCIAL STATEMENTSFor the quarter and nine months ended September 30, 2017

(Un-audited) (Audited)

NoteSeptember 30,

2017Rupees

December 31, 2016

Rupees

3

4

5

5

6

7

11

12

8

11

10

13

6

9

101,757,915

89,135

204,888

144,473,631

50,000,000

21,030,000

108,751,709

131,893,737

273,361,806

69,119,639

36,608,719

19,481,019

61,291,598

85,290,926

1,103,354,722

460,000,000

46,618,009

506,618,009

145,655,556

268,120,405

-

4,904,317

8,759,461

9,472,232

28,476,140

56,467,567

14,046,731

60,834,306

596,736,713

1,103,354,722

97,531,017

104,558

246,760

135,814,426

-

20,230,000

129,599,261

117,689,722

258,327,374

70,274,311

40,737,250

25,846,224

76,903,607

59,955,430

1,033,259,940

410,000,000

20,313,300

430,213,300

139,295,248

270,947,285

4,166,529

9,621,899

13,454,943

2,172,988

24,725,219

49,507,160

15,758,643

73,396,726

603,046,640

1,033,259,940

The annexed notes 1 to 19 form an integral part of this condensed interim financial information.

Condensed Interim Financial Position (Un-audited)As At September 30, 2017

Assets

Property and equipment

Intangible assets

Investments

Equity securities

Government securities

Long term investments

Term deposits

Total assets in Window Takaful Operations - Operator's Fund

Loans and other receivables

Insurance / Reinsurance receivables

Reinsurance recoveries against outstanding claims

Deferred commission expense

Deferred taxation

Prepayments

Cash and bank balances

Total Assets

Equity and Liabilities

Capital and reserve attributable to Company's equity holders

Ordinary share capital

Unappropriated profit

Total Equity

Liabilities

Underwriting Provisions

Provision for outstanding claims (including IBNR)

Provision for unearned premium

Premium deficiency reserve

Unearned re-insurance commission

Retirement benefit obligations

Insurance / Reinsurance payables

Other creditors and accruals

Taxation - provision less payments

Liability against leased assets

Total liabilities in Window Takaful Operations

Total Liabilities

Total Equity and Liabilities

Contingencies and Commitments

10


Chief Executive Officer ChairmanDirectorDirector

Condensed Interim Profit and Loss Account (Un-audited)for the quarter and nine months ended September, 30, 2017

119,462,192 (34,316,200)

- (20,644,080)

(54,960,280) (37,557,907)

26,944,005 3,517,102 239,854 (21,126,323)

9,574,638 (339,517)

1,889,695 11,124,817

(3,039,800) 8,085,018

0.18

1112

13

14

6

155,820,833 (38,019,322)

- (20,056,343)

(58,075,665) (41,227,429)

56,517,739 2,931,790

1,179,706 (25,268,424) 35,360,811

(345,152) (4,483,715)

30,531,944 (10,474,208)

20,057,736 0.51

410,245,896 (127,370,871)

4,166,529 (61,025,322)

(184,229,664) (118,743,839)

107,272,393 10,571,824

1,874,867 (66,793,410) 52,925,674

(1,089,109) (8,285,132)

43,551,433 (17,146,724)

26,404,709 0.57

403,671,998 (129,928,159)

- (42,981,350)

(172,909,509) (104,130,164)

126,632,325 9,478,152

4,279,029 (63,821,713) 76,567,793

(916,969) (8,633,638)

67,017,186 (22,067,222)

44,949,964 1.13

September 30,2017

Rupees

September 30,2016

Rupees

September 30,2017

Rupees

September 30,2016

Rupees

Quarter Ended Nine Months Ended

Net insurance premiumNet insurance claimsPremium deficiencyNet commissionInsurance claims and acquisition costsManagement expensesUnderwriting resultsInvestment incomeOther incomeOther expensesResult of operating activitiesFinance costsProfit / (loss) from Window Takaful OperationsProfit before taxIncome tax expenseProfit after taxEarnings (after tax) per share - basic and diluted


Note

11


Quarter Ended Nine Months endedSeptember 30,

2017September 30,

2016September 30,

2017September 30,

2016- - - - - - - - - - - - - - - - -R u p e e s- - - - - - - - - - - - - - - - -

Profit after tax Other comprehensive income:Unrealized gains/ (losses) on available -for-sale investments

Other comprehensive income for the period

Total comprehensive income for the period

8,085,018

-

-

8,085,018

20,057,736

-

-

20,057,736

26,404,709

-

-

26,404,709

44,949,964

-

-

44,949,964


Condensed Interim Statement of Comprehensive Income (Un-audited)

12

for the quarter and nine months ended September, 30, 2017



Condensed Interim Statement of Cash Flows (Un-audited)

September 30,2017

Rupees

September 30,2016

RupeesOPERATING CASH FLOWSa) Underwriting activities

Insurance premium received Reinsurance premium paidClaims paidReinsurance and other recoveries receivedCommission paidCommission receivedManagement expenses paidNet cash flow from underwriting activities

Income tax paidGeneral expenses paidOther operating receipts/(payments)Loan to employees and agents Net cash flow from other operating activitiesTotal cash flow from all operating activities

b) Other operating activities

INVESTMENT ACTIVITIES

Profit/ return receivedAddition in EquityLease hold paymentsInvestments - Window Takaful OperationsPayments for investmentsFixed capital expenditureProceeds from disposal of fixed assetsNet cash flow from investing activities

Payments on finance leases

500,185,330 (82,235,821) (127,917,571) 2,367,332 (71,734,794)

9,305,236 (104,006,271)

125,963,440

(3,821,113) (66,793,410) (10,835,642)

(407,283) (81,857,448) 44,105,993

11,636,839 50,000,000 - -

(58,617,333) (12,727,683)

768,199 (8,939,978)

(9,030,519) (9,030,521) 26,135,496 80,185,430 106,320,926

497,817,382

(92,444,716)

(134,272,542)

(23,231,249)

(63,649,454)

13,374,259

(79,430,342)

118,163,338

(4,930,048)

(62,904,744)

6,176,441

(540,248)

(62,198,599)

55,964,739

11,249,703

-

2,347,667

(8,633,638)

(14,498,687)

(11,786,180)

335,936

(20,985,199)

(9,833,000)

(9,833,000)

25,146,539

83,549,504

108,696,043

FINANCING ACTIVITIES

Net cash flow from financing activitiesNet cash inflow from all activitiesCash and cash equivalents at the beginning of the periodCash and cash equivalents at the end of the period

13

for the nine months ended September, 30, 2017


September 30,2017

Rupees

September 30,2016

RupeesReconciliation to Profit and Loss Account

Operating cash flowsDepreciation / AmortizationProvision for doubtful debtsProvision for gratuityGain on disposal of fixed assets(Decrease) / Increase in assets other than cashDecrease in liabilities Investment and other incomeLease chargesLoss on takaful operations(Provision) for taxation

Profit after taxation for the period

44,105,993 (14,498,489)

(3,580,676) (2,304,517) 520,980 12,988,926

5,121,633 10,571,824 (1,089,109) (8,285,132) (17,146,724)

26,404,709

55,964,739 (14,571,264) (3,651,301) (3,883,722) 48,853 30,770,809 2,066,375 9,478,152 (571,817) (8,633,638)

(22,067,222)

44,949,964

Definition of cash

Cash comprises of cash in hand, policies 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 comprises of:

Cash and cash equivalents

Cash and other equivalents 521,519 84,769,407 21,030,000

106,320,926

1,915,267 76,650,776 30,130,000

108,696,043

Current and other accountsDeposits maturing within 3 months


14




Share capitalReserve for

issuance of bonus share

Unappropriated profit

Total

- - - - - - - - - - - R u p e e s - - - - - - - - - - -Balance as at January 01, 2016


Transfer to reserve for issue of bonus shares

Bonus share reserve capitalized

Balance as at September 30, 2016

Balance as at January 01, 2017

Issuance of ordinary shares



325,000,000

-

-

71,500,000

396,500,000

410,000,000

50,000,000

-

460,000,000

-

-

7 1,500,000

( 71,500,000)

-

-

-

-

-

72,216,653

44,949,964

(71,500,000)

-

45,666,617

20,213,300

-

26,404,709

46,618,009

397,216,653

44,949,964

-

-

442,166,617

430,213,300

50,000,000

26,404,709

506,618,009


Condensed Interim Statement of Changes in Equity (Un-audited)

Attributable to equity holders of the Company

15



Notes To The Condensed Interim Financial Statements (Un-audited)for the quarter and nine months ended September, 30, 2017

1

2

2.1.4

2.2

2.3

2.5

2.5.2

LEGAL STATUS AND NATURE OF BUSINESS

SPI Insurance Company Limited (the Company) is an unquoted Public Limited Company incorporated under the repealed Companies Ordinance, 1984, on February 15, 2005. 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, in the province of Sindh, and principal office of the Company is situated at UIG House 6-D, 1st Floor, Upper Mall, Lahore, in the province of Punjab.

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. The Company has not transacted any business outside Pakistan.

BASIS OF PREPARATIONStatement of complianceThis condensed interim financial information has been prepared in accordance with the requirements of the International Accounting Standard 34 "Interim Financial Reporting" as applicable in Pakistan, provisions of and directives issued under the Companies Ordinance, 1984, Insurance Ordinance 2000, Insurance Rules, 2017, Insurance Accounting Regulations 2017 and Takaful Rules, 2012. In case requirements differ, the provisions or directives of the repealed Companies Ordinance, 1984, Insurance Ordinance 2000, Insurance Rules, 2017, Insurance Accounting Regulations 2017 and Takaful Rules, 2012 have been followed.Total assets, total liabilities and profit / (loss) of the Window Takaful Operations of the Company referred to as the Operator's Fund has been presented in this condensed interim financial information in accordance with the requirements of Circular 25 of 2015 dated 9 July, 2015.The condensed interim financial information do not include all the information required in the full annual financial statements. Accordingly, this condensed interim financial information should be read in conjunction with annual financial statements of the Company for the year ended 31 December, 2016.These condensed interim financial information have been presented in Pakistani Rupees, which is also the functional currency of the Company.Estimates, judgements and risk management policiesThe preparation of this condensed interim financial information in conformity with approved accounting standards, as applicable in Pakistan, requires the management to make judgments, estimates and assumptions that affect application of accounting policies and reported amounts of assets, liabilities, income and expenses.The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.Significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on amounts recognized in this condensed interim financial information are the same as those disclosed in the published audited financial statements for the year ended December 31, 2016.Risk management policies and procedures are consistent with those disclosed in the published audited financial statements for the year ended December 31, 2016.Basis of MeasurementThis condensed interim financial information has been prepared under the historical cost convention except that certain financial instruments are carried at fair value and obligations under staff retirement benefits are stated at present value.Significant Accounting PoliciesThe accounting policies and methods of computation followed in the preparation of this condensed interim financial information are the same as those applied in the preparation of the published audited financial statements for the year ended December 31, 2016.Application of new and revised international financial reporting standardsStandards, amendments to published approved accounting standards and interpretations becoming effective in current period:There are certain new standards, amendments and International Financial Reporting Interpretations Committee (IFRIC) interpretations that became effective during the period and are mandatory for accounting periods of the Company beginning on or after January 01, 2017 but are considered not to be relevant or not to have any significant effect on the Company's operations. The new standards, amendments and IFRIC interpretations that are relevant to the operations of the Company are disclosed in the published audited financial statements for the year ended December 31, 2016.Standards, amendments to published approved accounting standards and interpretations becoming effective in future periods:There are other new standards, amendments and IFRIC interpretations that are mandatory for accounting periods of the Company beginning on or after January 01, 2017 but are considered not to be relevant or not to have any significant effect on the Company's operations. The new standards, amendments and IFRIC interpretations that are relevant to the operations of the Company are disclosed in the published audited financial statements for the year ended December 31, 2016.

2.12.1.1

2.1.2

2.1.3

2.2.1

2.2.2

2.4

2.5.1

16


Notes To The Condensed Interim Financial Statements (Un-audited)

17


Note

Rupees Rupees

73,019,365 28,738,550

101,757,915

71,776,860 25,754,157 97,531,017

3.1

3.1

September 30,2017

(Unaudited)December 31,

2016

(Audited)

PROPERTY AND EQUIPMENTOperating fixed assets: Owned assets Leased assets

Additions and deletions in property and equipment Following are the major additions at cost and deletions at net book value in fixed assets:

Tangible owned assetsOffice improvementsFurniture and fixturesOffice equipmentComputer equipmentTracking devicesMotor vehicles

Leased assetsLeased vehiclesINVESTMENT IN EQUITY SECURITIES - AVAILABLE FOR SALE Ordinary shares of listed companies - cost Less: Provision for impairment in value of investment

The market value of available for sale - equity as at September 30, 2017 is Rs. 204,888 /- (December 31, 2016: Rs. 298,329/-).INVESTMENT IN DEBT SECURITIES - HELD TO MATURITYGovernment securitiesPakistan investment bonds Treasury bills Less: (Discount)/ premium on issuance of government securities

Long term investmentsLong term investments

These securities 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. 115.5 million (2016: Rs. 84.50 million) carry mark-up ranging from 7.75% to 12.00% per annum (2016: 7.75% to 12.00% per annum) annually and would mature up to April 2026.These Treasury Bills have a face value of Rs. 27.00 million (2016: Rs. 51.00 million) carry mark-up ranging from 5.90% to 5.95% per annum (2016: 5.94% per annum) annually and would mature up to January 2018.These investments are made in Apna Microfinance Bank Limited (Related Party) for the tenor of 05 years. Rate of return is 8.00% per annum (2016: Nil) which is payable bi-annually.TOTAL ASSETS IN WINDOW TAKAFUL OPERATIONS - OPERATOR'S FUND Assets Cash and bank balances Loan to employees Investments Current assets - others Fixed assets Total assets Total liabilities (Loss) / Profit from Window Takaful Operations

Deletions (at net book value)

Sept. 30, 2017 Sept. 30, 2016

Additions (at cost)

Sept. 30, 2017 Sept. 30, 2016

- - 3,200 47,148 - 1,230,000

1,280,348

-

- 55,000

- - -

755,360 810,360

- -

- 202,740

109,300 343,658 1,277,785 10,794,200

12,727,683

6,229,500

- 426,930 821,943 1,357,505 8,698,884 437,350

11,742,612

9,833,000

539,725 (334,837)

204,888

115,500,000 27,000,000 1,973,631 144,473,631

50,000,000194,473,631

539,725 (292,965)

246,760

84,500,000 51,000,000

314,426 135,814,426

-135,814,426

13,308,04575,108

48,068,07942,600,4304,700,047

108,751,70960,834,306 (8,285,132)

10,442,988 58,081

44,646,355 68,988,455 5,463,382

129,599,261 73,396,726 3,928,425

5.1

5.2

5.3

4

5

5.1

5.2

6

5.3


NoteSeptember 30,

2017 December 31,

2016Rupees Rupees

7

(Unaudited) (Audited)

INSURANCE / REINSURANCE RECEIVABLES Due from insurance contract holders Less provision for impairment of receivables from insurance contract holders Due from other Insurers / reinsurers Less provision for impairment of due from other insurers / reinsurers

ORDINARY SHARE CAPITAL Authorized share capital

Issued, subscribed and paid-up share capital

RupeesSept. 30, 2017 Dec. 31, 2016

1,000,000,000

200,000,00050,000,000

250,000,000 85,000,000

125,000,000

460,000,000

1,000,000,000

200,000,00050,000,000

250,000,000 85,000,000

75,000,000

410,000,000

Number of SharesSept. 30, 2017 Dec. 31, 2016

100,000,000

20,000,0005,000,000

25,000,000 8,500,000

12,500,000

46,000,000

100,000,000

20,000,0005,000,000

25,000,000 8,500,000

7,500,000

41,000,000 Amount of Rs 50 million is deposited as statutory reserve 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 of Pakistan.

18

140,683,951 (9,988,855) 162,330,314 (19,663,604) 273,361,806

127,763,191 (8,014,991) 156,635,966 (18,056,792) 258,327,374

Ordinary shares of Rs. 10/- each

Paid up capital for general insuranceStatutory fund for Window Takaful OperationsOrdinary shares of Rs. 10/- each fully paid in cashOrdinary shares of Rs. 10/- each issued as fully paid bonus sharesOrdinary shares of Rs. 10/- each issued asfully paid right shares

88.1

8.2

8.2.1

9

10


CONTINGENCIES AND COMMITMENTS

Messer'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.”

NET INSURANCE PREMIUM

Written Gross PremiumAdd: Unearned premium reserve - OpeningLess: Unearned premium reserve - Closing Premium earned

Less: Reinsurance premium cededAdd: Prepaid reinsurance premium - OpeningLess: Prepaid reinsurance premium - Closing Reinsurance expense

Nine Months Ended

Sept. 30, 2017Rupees


513,106,090 270,947,285 (268,120,405)

515,932,970

89,535,064 69,267,535

(53,115,525) 105,687,074 410,245,896

505,620,693 240,047,499 (255,847,799)

489,820,393

89,829,112 74,591,948 (78,272,665)

86,148,395 403,671,998

Quarter Ended



163,900,512 252,861,016 (268,120,405) 148,641,123

30,351,971 51,942,485 (53,115,525)

29,178,931 119,462,192

188,501,294 248,605,609

(255,847,799) 181,259,104

37,623,638 66,087,298

(78,272,665) 25,438,271 155,820,833



The related parties comprise 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, 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:

NET INSURANCE CLAIMSClaims PaidAdd: Outstanding claims including IBNR - ClosingLess: Outstanding claims including IBNR - Opening Claims expenseLess: Reinsurance and other recoveries received Add: Reinsurance and other recoveries in respect of outstanding claims - Closing Less: Reinsurance and other recoveries in respect of outstanding claims - Opening Reinsurance and other recoveries revenue






127,917,570 145,655,556

(139,295,248) 134,277,879

8,061,680 69,119,639

(70,274,311)

6,907,008 127,370,871

134,272,542 60,481,829 (53,975,167) 140,779,204

9,455,405 31,905,567

(30,509,927)

10,851,045 129,928,159

33,838,342 145,655,556 (140,885,683) 38,608,214 3,394,082

69,119,639

(68,221,707)

4,292,014 34,316,200

35,331,926 60,481,829

(56,087,573) 39,726,182

2,071,790 31,905,567

(32,270,497)

1,706,860 38,019,322

NET COMMISSIONCommission paid or payableAdd: Deferred commission expense - OpeningLess: Deferred commission expense - Closing Net CommissionLess: Commission received or recoverable Add: Unearned re-insurance commission - Opening

Less: Unearned re-insurance commission - Closing

Commission from reinsurers

70,919,608 40,737,250 (36,608,719)

75,048,139 9,305,235

9,621,899 (4,904,317)

14,022,817 61,025,322

63,649,454 33,024,884 (45,034,028)

51,640,310 13,374,259

7,720,910 (12,436,209) 8,658,960

42,981,350

23,009,380 37,790,933 (36,608,719)

24,191,593 2,970,562

5,481,268 (4,904,317) 3,547,513

20,644,080

25,699,193 42,277,297 (45,034,028)

22,942,462 8,878,131

6,444,197 (12,436,209) 2,886,119

20,056,343 INVESTMENT INCOMEIncome from debt securities - Held to maturityReturn on debt securitiesIncome from term depositsReturn on term deposits

Net realised gain on investmentsAvailable for sale financial assetsRealised gains on equity securitiesNet unrealized loss on investmentNet unrealized loss on investment at fair value through profit or loss (helf for trading purposes)Total investment incomeLess: Investment related expenses

9,885,919

750,203 10,636,122

-

(41,872)

10,594,250 (22,426) 10,571,824

7,086,654

2,174,650 9,261,304

248,058

-

9,509,362 (31,210) 9,478,152

3,230,113

293,660 3,523,773

-

-

3,523,773 (6,671)

3,517,102

2,385,669

562,183 2,947,852

(14,907)

-

2,932,945 (1,155)

2,931,790 RELATED PARTY TRANSACTIONS

19

11

12

13

14


20


United Track System (Pvt.) Limited (Associated Company)Tracker charges / devicesApna Microfinance Bank Limited (Associated Company)Bank chargesProfit on term deposit receiptsProfit on bank depositsOther balances with associated companyProfit and loss sharing accountsAccrued investment incomeTerm depositsCurrent accountsSilk Bank Limited (Associated Company)Balance at beginning of the period Gross insurance premium written (including administrative surcharge, government levies & policies stamps)Received / adjusted during the periodBalance at end of the periodInsurance claim expenseOutstanding claims at beginning of the periodGross claim expense for the periodClaim paid during the periodOutstanding claims at end of the periodOther balances with associated companyTerm depositsProfit and loss sharing accountsCurrent accountsAccrued investment incomeStaff retirement gratuity fundContribution to defined benefit planPayable from defined benefit planTransaction with key management personnelRemuneration of key management personnelLoan to key management personnel






7,582,488

11,935 32,417 593,012

9,356,864 13,759 600,000

2,726,511

19,547,213 18,124,345

(12,582,499) 25,089,059

3,527,313 10,845,880 (8,509,644)

5,863,549

12,430,000 238,042 2,040,323

242,677

7,000,000 (8,759,461)

49,665,420 1,936,275

14,438,223

5,152 121,060

134,009

1,918,499 177,805 10,500,000 113,147

20,373,889 27,566,618

(26,450,217) 21,490,290

2,922,360 13,389,489 (8,797,482) 7,514,367

11,830,000 188,830 8,413,441

212,599

3,500,000(12,290,677)

46,920,510 1,266,066

2,805,735

7,385 15,782 404,175

9,356,864 13,759 600,000 2,726,511

18,943,838 8,071,808

(1,926,587) 25,089,059

4,743,512

4,885,976 (3,765,939)

5,863,549

12,430,000 238,042 2,040,323 242,677

2,000,000 (8,759,461)

17,799,045 1,936,275

7,084,314

3,002 93,937 74,177

1,918,499 177,805 10,500,000

113,147

19,537,901 7,455,438

(5,503,049) 21,490,290

6,337,740 2,271,087 (1,094,460) 7,514,367

11,830,000 188,830 8,413,441 212,599

2,000,000 (12,290,677)

17,253,900 1,266,066



Not

es T

o T

he C

onde

nsed

Inte

rim

Fin

anci

al S

tate

men

ts (

Un-

audi

ted)

for

the

nine

mon

ths

ende

d Se

ptem

ber

30, 2

017

SEG

MEN

T R

EPO

RTIN

GT

he c

ompa

ny h

as fo

ur p

rim

ary

busin

ess

segm

ents

for

repo

rtin

g pu

rpos

e na

mel

y fir

e, m

arin

e, m

otor

and

misc

ella

neou

s.A

sset

s an

d lia

bilit

ies,

whe

reve

r po

ssib

le, h

ave

been

ass

igne

d to

the

follo

win

g se

gmen

ts b

ased

on

spec

ific

iden

tifica

tion

or a

lloca

ted

on t

he b

asis

of g

ross

pre

miu

m w

ritt

en b

y th

e se

gmen

ts.

Ass

ets

and

liabi

litie

s of

Win

dow

Tak

aful

Ope

ratio

ns h

ave

been

disc

lose

d se

para

tely

as

the

requ

irem

ents

of

Circ

ular

No.

25 o

f 20

15 is

sued

dat

ed Ju

ly 0

9, 2

015

Net

insu

ranc

e pr

emiu

mN

et in

sura

nce

clai

ms

Cha

nges

in p

rem

ium

de

ficie

ncy

rese

rve

Man

agem

ent

expe

nses

Net

com

miss

ion

Und

erw

riting

res

ults

Wak

ala

fee

- ta

kafu

l (O

PF)

Com

miss

ion

expe

nse

- ta

kafu

l (O

PF)

Una

lloca

ted

profi

t an

d lo

ss -

con

vent

iona

lU

nallo

cate

d pr

ofit

and

loss

- t

akaf

ul (

OPF

)C

ON

SOLI

DAT

ED T

OTA

L PR

OFI

T A

ND

LO

SS B

EFO

RE T

AX

64,

473,

476

(11,

615,

993) -

(20

,309

,133

)

(1

8,82

5,99

4)

13,

722,

356

79

,691

,110

(20

,965

,180

)

-

(25

,336

,904

)

(1

4,77

4,32

9)

18

,614

,697

28,1

02,5

58

(4,9

96,9

43)

4,

166,

529

(1

0,57

5,71

0)

(8,4

18,8

91)

8,

277,

543

22,

733,

134

(4

,291

,542

)

-

(7

,737

,394

)

(

6,90

3,57

8)

3,

800,

620

1

09,7

82,5

70

(37

,681

,448

)

-

(3

4,62

9,13

5)

(8

,403

,849

)

29

,068

,139

1

37,8

23,0

44

(

60,1

75,2

93)

-

(29,

912,

534)

(10,

641,

638)

3

7,09

3,57

9

207

,887

,292

(7

3,07

6,48

7)

-

(53,

229,

861)

(2

5,37

6,58

8)

56

,204

,356

1

63,4

24,7

10

(44,

496,

144)

-

(41,

143,

332)

(10,

661,

805)

67

,123

,429

- - - - - - -

88

,390

,710

(42,

110,

663) - -

- - - - - - -

8

3,59

3,81

2

(2

2,01

2,27

3) - - 4

10,2

45,8

96

(1

27,3

70,8

71)

4,16

6,52

9

(118

,743

,839

)

(6

1,02

5,32

2)

1

07,2

72,3

93

88,

390,

710

(42,

110,

663)

(5

5,43

5,82

8)

(5

4,56

5,18

0)

4

3,55

1,43

3 4

03,6

71,9

98(1

29,9

28,1

59) -

(104

,130

,164

)(4

2,98

1,35

0)12

6,63

2,32

5

8

3,59

3,81

2(2

2,01

2,27

3)(5

0,98

1,50

1)(7

0,21

5,17

7)

6

7,01

7,18

6

15

Fire

and

pro

pert

y da

mag

eSe

pt. 3

0,20

17Se

pt. 3

0,20

16Se

pt. 3

0,20

17Se

pt. 3

0,20

16Se

pt. 3

0,20

17Se

pt. 3

0,20

16Se

pt. 3

0,20

17Se

pt. 3

0,20

16Se

pt. 3

0,20

17Se

pt. 3

0,20

16

Mar

ine,

avi

atio

n an

d tr

ansp

ort

Moto

rM

isce

llane

ous

Win

dow

Tak

aful

Ope

rati

ons

Sept

. 30,

2017

Un-

Aud

ited

Aud

ited

Sept

. 30,

2016

Tota

l

Fire

and

pro

pert

y da

mag

eSe

pt. 3

0,20

17D

ec. 3

1,20

16Se

pt. 3

0,20

17D

ec. 3

1,20

16Se

pt. 3

0,20

17D

ec. 3

1,20

16Se

pt. 3

0,20

17D

ec. 3

1,20

16Se

pt. 3

0,20

17D

ec. 3

1,20

16

Mar

ine,

avi

atio

n an

d tr

ansp

ort

Moto

rM

isce

llane

ous

Win

dow

Tak

aful

Ope

rati

ons

Sept

. 30,

2017

Un-

Aud

ited

Aud

ited

Dec

. 31,

2016

Tota

l

Segm

ent

asse

ts-

conv

entio

nal b

usin

ess

Una

lloca

ted

corp

orat

eas

sets

CO

NSO

LID

AT

ED T

OTA

L A

SSET

SSe

gmen

t lia

bilit

ies-

conv

entio

nal b

usin

ess

Una

lloca

ted

corp

orat

elia

bilit

ies

CO

NSO

LID

AT

ED T

OTA

L LI

ABIL

ITIE

SC

apita

l exp

endi

ture

sD

epre

ciat

ion

10

0,13

2,78

3

-

85,3

31,3

45

-

3,2

42,3

07

2,

479,

722

136

,981

,319

-

1

19,2

42,1

48

-

7

,467

,097

5,0

41,3

65

3

0,79

7,07

4

-

2

0,29

8,06

9

-

1

,688

,388

1,2

91,2

82

29,

906,

814

-

19,

258,

143

-

2

,189

,926

1,4

78,5

16

98,7

51,0

65

-

1

31,0

11,4

39

-

5,

528,

462

4,

228,

178

99,

261,

178

-

1

15,7

55,0

60

-

8

,303

,676

5,6

06,1

76

202

,524

,767

-

191,

511,

655

-

8,4

98,0

26

6,4

99,3

06 1

72,4

57,1

60

-

1

67,7

82,0

69

-

11,

379,

896

7

,683

,067

10

8,75

1,70

9

-

10

8,75

1,70

9

60,

834,

306

-

6

0,83

4,30

6 - -

129

,599

,261

-

129

,599

,261

73

,396

,726

-

73,3

96,7

26

-

-

540

,957

,398

562

,397

,324

1,

103,

354,

722

488

,986

,814

107

,749

,899

59

6,73

6,71

3

1

8,95

7,18

3

14,

498,

489

568

,205

,732

4

65,0

54,2

08

1,0

33,2

59,9

40

4

95,4

34,1

46

34,

215,

768

529

,649

,914

2

9,34

0,59

5

1

9,80

9,12

4

21


16 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.

DATE OF AUTHORIZATION FOR ISSUE

The condensed interim financial information was authorized for issue in accordance with a resolution of board of directorsof the company on October 26, 2017.

CORRESPONDING FIGURES

Corresponding figures have been re-classified and re-arranged, wherever necessary, to conform with the current classification.However, there are no material re-classification to report.

GENERAL

Separate set of statements representing assets, liabilities, revenues and expenses of Window Takaful Operations has beenannexed to these financial statement as per the requirement of Takaful Rules, 2012.

Figures have been rounded up to the nearest rupee

17

18

19

22




24

Delivering Growth

SPI INSURANCE COMPANY LIMITED (WINDOW TAKAFUL OPERATIONS)

For the quarter and nine months ended September 30, 2017

26

Condensed Interim Statement of Financial Position (Un-audited)As At September 30, 2017

The annexed notes from 1 to 17 form an integral part of this condensed interim financial information.

Note

September 30,2017

December 31,2016

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

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

Operator’s fund Consolidated Consolidated

Assets

Property and equipmentInvestments Equity securities Government securities Term depositsLoans and other receivablesTakaful / Retakaful receivablesRetakaful recoveries against outstanding claimsDeferred commission expensePrepaymentsCash & bank balancesTotal Assets

Equity and LiabilitiesOperator's FundStatutory FundAccumulated (loss) / profit

Waqf/ Participant's Takaful FundCeded moneyAccumulated surplus

Total Equity

LiabilitiesUnderwriting Provisions Provision for outstanding claims (including IBNR)

Provision for unearned contribution Unearned re-takaful commissionRetirement benefit obligationsTakaful / Retakaful payablesOther creditors and accrualsTotal LiabilitiesTotal Equity and Liabilities

Contingencies and Commitments

17,073,316

- -

1,100,000 4,639

153,415,702 4,877,583

- 39,500,762

6,519,544 222,491,546

- - -

500,000 4,854,907 5,354,907 5,354,907

68,784,38467,122,8397,013,084

- 29,300,897 44,915,435

217,136,639 222,491,546

-

4,700,047

48,068,079 -

8,200,000 75,108

- -

21,870,867 20,729,563

5,108,045 108,751,709

50,000,000 (2,082,597) 47,917,403

- - -

47,917,403

---

4,856,963-

55,977,34360,834,306

108,751,709

-

21,773,363

48,068,079 - 9,300,000

79,747 153,415,702 4,877,583 21,870,867 60,230,325 11,627,589 331,243,255

50,000,000 (2,082,597) 47,917,403

500,000 4,854,907

5,354,90753,272,310

68,784,384 67,122,839 7,013,084 4,856,963 29,300,897100,892,778 277,970,945

331,243,255

-

9,763,381

44,646,355 -

9,130,000 58,081

180,911,023 13,971,100 31,094,124

102,797,125 38,387,818

430,759,007

50,000,000 6,202,535

56,202,535

500,000 13,043,595 13,543,595 69,746,130

76,720,654 92,628,473 12,497,440 3,628,566

49,091,707 126,446,037 361,012,877 430,759,007

-

34

51011

6

7

109

11

8



27

Condensed Interim Profit and Loss Account (Un-audited)

Note

September 30,2017

September 30,2016

September 30,2017

September 30,2016

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

(2,834,234)

(19,168,926)

(2,211,126)

(21,380,052)

8,822,731

(15,391,555)

16,446

27,988

(15,347,121)

29,219,538

(12,292,208)

(300,000)

16,627,330

-

6,820

(14,744,455)

1,889,695

15,297,700

(15,320,517)

(1,343,421)

(16,663,938)

4,343,584

2,977,346

-

32,451

3,009,797

27,437,925

(11,160,396)

(300,000)

15,977,529

-

11,840

(20,473,084)

(4,483,715)

88,390,710

(42,110,662)

(937,000)

45,343,048

3,311,661

39,431

(56,979,272)

(8,285,132)

6,202,535

(8,285,132)

(2,082,597)

80,177,860

(55,345,038)

(5,089,999)

(60,435,037)

7,086,527

26,829,350

-

114,009

26,943,359

(434,482)

26,943,359

26,508,877

83,593,812

(22,012,273)

(1,000,000)

60,581,539

2,319,996

101,265

(71,636,438)

(8,633,638)

2,274,110

(8,633,638)

(6,359,528)

9

10

11

11

12

12

Accumulated loss at the end of the period


Net takaful contribution

Net takaful claims

Direct expenses

Takaful claims

Net rebate on re-takaful

Underwriting results

Investment income

Other income

Surplus / (Deficit) for the period

Participants' Takaful Fund Revenue Account

Accumulated surplus

Balance at the beginning of the period


Balance at the end of the period

Operator's Revenue Account

Wakala fee

Commission expense

Management expenses

Investment income

Other income

General & administration expenses

Profit / (loss) for the period

Profit / (loss) appropriation account

Balance at the beginning of the period

Total comprehensive loss for the period



28,212,682

(49,922,363)

(7,218,468)

(57,140,831)

20,516,306

(8,411,843)

35,520

187,635

(8,188,688)

13,043,595

(8,188,688)

4,854,907


28


Condensed Interim Statement of Comprehensive Income (Un-audited)

Quarter Ended Nine Months EndedSeptember 30,

2017September 30,

2016September 30,

2017September 30,

2016--------------------------Rupees --------------------------

PARTICIPANTS' TAKAFUL FUND


Other comprehensive income:Unrealized gains/ (losses) on available -for-saleinvestments

Other comprehensive income for the period

Total comprehensive income / (loss) for the period

OPERATOR'S FUND

Other comprehensive income:

Unrealized gains/ (losses) on available -for-saleinvestmentsOther comprehensive income for the periodTotal comprehensive income / (loss) for the period


3,009,797

-

- 3,009,797

(4,483,715)

-

- (4,483,715)

26,943,359

-

- 26,943,359

(8,633,638)

-

- (8,633,638)

(8,188,688)

-

- (8,188,688)

(8,285,132)

-

- (8,285,132)

(15,347,121)

-

- (15,347,121)

1,889,695

-

- 1,889,695




29

----------------------------Rupees----------------------------Operating cash flows

a) Operating activities Contribution received Wakala fee received Retakaful contribution ceded Claims paid Retakaful and other recoveries received / (paid) Commissions paid Retakaful rebate receivedDirect expense

93,544,733

(90,348,818) (65,406,074) 53,442,065

15,031,950 (3,179,149)

3,084,707

-(15,945,874)

(15,945,874)

(12,861,167)

30,881-

(16,625,000)

(16,594,119)

- -

(29,455,286)

37,074,830 7,619,544

- - - -

-

Net cash flow from underwriting activities

b) Other operating activitiesGeneral and management expenses paidOther operating receipts/(payments)

Net cash flow from other operating activities

Total cash flow from all operating activities

-

-

Investment activitiesInvestment income receivedSale/(purchase) of investmentFixed capital expenditure

Net cash flow from investing activities

Financing activities:Qarz e hasnaNet cash flow from financing activitiesNet cash inflow / (outflow) from all activities

Cash and cash equivalents at the beginning of the periodCash and cash equivalents at the end of the period


- 88,390,710

(30,613,279)

- 1,119,799

58,897,230

(56,979,272)1,111,771

(55,867,501)

3,029,728

3,282,689 (3,421,724)

(25,636)

(164,671)

- -

2,865,057

10,442,988 13,308,045

93,544,733 88,390,710 (90,348,818) (65,406,074) 53,442,065 (30,613,279) 15,031,950 (2,059,351)

130,241,23083,593,812

(39,064,968)(36,490,286)(32,987,317)(32,311,770)

10,822,781 (3,374,753)

80,428,729

(71,636,438) (6,119,852)

(77,756,290)

2,672,439

2,319,996 5,791,469

(7,406,526)

704,939

- - 3,377,378

22,499,114 25,876,493

61,981,936

(56,979,272) (14,834,103)

(71,813,375)

(9,831,439)

3,313,570 (3,421,724) (16,650,636)

(16,758,790)

- -

(26,590,229)

47,517,818 20,927,589

Consolidated Consolidated

Sept. 30, 2017

PTF OPF

Sept. 30, 2017 Sept. 30, 2016


30


----------------------------Rupees----------------------------Reconciliation of profit and loss account

(12,861,167)(3,851,683)

-(61,990,870)

70,479,51235,520

(8,188,688)

(8,188,688)-

(8,188,688)

3,029,728 (788,971) (1,228,397) (26,399,970) 13,790,817

3,311,661

(8,285,132)

- (8,285,132)

(8,285,132)

(9,831,439) (4,640,654) (1,228,397) (88,390,840)

84,270,329 3,347,181

(16,473,820)

(8,188,688)(8,285,132)

(16,473,820)

2,672,439 (2,045,220) (454,752) 46,697,754 (30,880,496)

2,319,996

18,309,721

26,943,359(8,633,638)

18,309,721

Definition of cash

Cash for the purpose of the statement of cash flows comprises of cash in hand, bank balances and other assets which are readilyconvertible to cash and used for cash management for day to day business operations.

Cash for the purpose of cash flows comprises of :

Cash and cash equivalents

Cash and other equivalents 621,445 5,898,099 1,100,000

7,619,544

211,559 4,896,486 8,200,000

13,308,045

833,00410,794,5859,300,000

20,927,589

966,00115,780,4929,130,000

25,876,493

Current and saving accountsDeposits maturing within 12 months


Net cash flow from operating activitiesDepreciationProvision for gratuity(Increase) / Decrease in assets other than cashIncrease / (Decrease) in liabilitiesGain & other investment income


Attributed to:Participants' takaful fund Operator's fund

Operating cash flows

Consolidated ConsolidatedPTF OPF



Sept. 30, 2017 Sept. 30, 2017 Sept. 30, 2016


31

The annexed notes from 1 to 17 form an integral part of these condensed interim financial information.

Condensed Interim Statement of Changes in Funds (Un-audited)

Ceded moneyUnappropriatedsurplus / (deficit)

Total







5 00,000

-

5 00,000

5 00,000

-

5 00,000

(434,482)

26,943,359

26,508,877

13,043,595

(8,188,688)

4,854,907

65,518

26,943,359

27,008,877

13,543,595

(8,188,688)

5,354,907

Participants’ Takaful Fund

Description

Unappropriatedprofit/(loss)

Total







5 0,000,000

-

5 0,000,000

5 0,000,000

-

5 0,000,000

2,274,110

(8,633,638)

(6,359,528)

6,202,535

(8,285,132)

(2,082,597)

52,274,110

(8,633,638)

43,640,472

56,202,535

(8,285,132)

47,917,403

Operator’s Fund

Description Statutory fund



Notes To The Condensed Interim Financial Statementsfor the quarter and nine months ended September, 30, 2017 (Un-audited)

1 LEGAL STATUS AND NATURE OF BUSINESS

2.12.1.1

2

STATEMENT OF COMPLIANCE

SPI Insurance Company Limited (the Company) is an unquoted Public Limited Company incorporated under the repealed Companies Ordinance, 1984, on February 15, 2005. 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, in the province of Sindh, and principal office of the Company is situated at UIG House 6-D, 1st Floor, Upper Mall, Lahore, in the province of Punjab.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. The Company 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 participants' 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 Operators and policy holders for management of takaful operations, investment policy holders funds and investment of Operator's funds approved by shariah advisor of the company.

This condensed interim financial information has been prepared in accordance with the requirements of the International Accounting Standard 34 "Interim Financial Reporting" as applicable in Pakistan, provisions of and directives issued under the repealed Companies Ordinance, 1984, Insurance Ordinance 2000, Insurance Rules, 2017 and Takaful Rules, 2012. In case requirements differ, the provisions or directives of the repealed Companies Ordinance, 1984, Insurance Ordinance 2000, Insurance Rules, 2017 and Takaful Rules, 2012 have been followed.

BASIS OF PREPARATION

2.1.2

2.1.3

2.1.4

2.2

2.2.1

This condensed interim financial information reflects the financial position and results of operations of both the Operator's Fund and Participants' Takaful Fund in a manner that the assets, liabilities, income and expenses of the Operator's Fund and Participants' Takaful Fund remain separately identifiable.

This condensed interim financial information does not include all the information required in the full annual financial statements. Accordingly, this condensed interim financial information should be read in conjunction with the annual financial statements of the Company for the year ended 31 December 2016.

This condensed interim financial information has been presented in Pakistani Rupees, which is also the functional currency of the Company.

Estimates, judgements and risk management policies

The preparation of this condensed interim financial information in conformity with approved accounting standards, as applicable in Pakistan, requires the management to make judgments, estimates and assumptions that affect application of accounting policies and reported amounts of assets, liabilities, income and expenses.The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.Significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on amounts recognized in this condensed interim financial information are the same as those disclosed in the published audited financial statements for the year ended December 31, 2016.

2.2.2 Risk management policies and procedures are consistent with those disclosed in the published audited financial statements for the year ended December 31, 2016.

2.3 Basis of measurementThis condensed interim financial information has been prepared under the historical cost convention except that certain financial instruments are carried at fair value and obligations under staff retirement benefits are stated at present value.

2.4 Significant Accounting PoliciesThe accounting policies and methods of computation followed in the preparation of this condensed interim financial information are the same as those applied in the preparation of the published audited financial statements for the year ended December 31, 2016Application of new and revised international financial reporting standardsStandards, amendments to published approved accounting standards and interpretations becoming effective in current period:There are certain new standards, amendments and International Financial Reporting Interpretations Committee (IFRIC) interpretations that became effective during the period and are mandatory for accounting periods of the Company beginning on or after January 01, 2017 but are considered not to be relevant or not to have any significant effect on the Company's operations. The new standards, amendments and IFRIC interpretations that are relevant to the operations of the Company are disclosed in the published audited financial statements for the year ended December 31, 2016.Standards, amendments to published approved accounting standards and interpretations becoming effective in future periods:There are other new standards, amendments and IFRIC interpretations that are mandatory for accounting periods of the Company beginning on or after January 01, 2017 but are considered not to be relevant or not to have any significant effect on the Company's operations. The new standards, amendments and IFRIC interpretations that are relevant to the operations of the Company are disclosed in the published audited financial statements for the year ended December 31, 2016.

2.52.5.1

2.5.2

32


33

Notes To The Condensed Interim Financial Statementsfor the quarter and nine months ended September, 30, 2017

NoteSeptember 30,

2017 Rupees

December 31,2016

Rupees3

3.1

(Un-audited) (Audited)

17,073,3164,700,047

21,773,363

4,299,999 5,463,382

9,763,381

Deletions (at net book value)

-

-

-

-

-

-

Sept. 30, 2017 Sept. 30, 2016Additions (at cost)

16,625,000

25,636

25,650,636

6,000,000

1,291,526

7,291,526

Sept. 30, 2017 Sept. 30, 2016

PROPERTY AND EQUIPMENTOperating fixed assets - ownedParticipants' Takaful FundOperator's Fund

Additions and deletions in property and equipmentFollowing are the major additions at cost and deletions at net book value in fixed assets:

Participants' Takaful FundMotor Tracking DevicesOperator's FundFurniture, fixture, office & computer equipment

INVESTMENT IN EQUITY SECURITIES - AVAILABLE FOR SALEUnits of mutual fundsThe market value of available for sale - equity as at September 30, 2017 is Rs. 48,554,667/- (December 31, 2016: Rs. 46,694,318/-).TAKAFUL / RETAKAFUL RECEIVABLES Due from takaful contract holders Due from other takaful/ retakaful operators

STATUTORY FUNDAmount 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 of Pakistan which states that "Every insurer who is interested to commence Window Takaful business shall transfer an amount of not less than Rs. 50 million to be deposited in a seperate bank account for Window Takaful business duly maintained in a scheduled bank".

CEDED MONEYThe amount of Rs. 500,000/- has been set as part for Waqf Fund/ Participants' Takaful Fund as waqf money according to the Waqf Deed prepared for the purpose of creation of Waqf Fund/ Participants' Takaful Fund.CONTINGENCIES AND COMMITMENTSThere is no change in the status of contingent liabilities and commitments since the end of last annual reporting period ended December 31, 2016.NET TAKAFUL CONTRIBUTION

Written Gross ContributionAdd: Unearned contribution reserve - OpeningLess: Unearned contribution reserve - Closing Contribution earnedLess: Re-takaful cededAdd: Prepaid re-takaful contribution - OpeningLess: Prepaid re-takaful contribution - Closing Re-takaful expense

Sept. 30,2017Rupees

Sept. 30,2016Rupees

Sept. 30,2017

Rupees Sept. 30,2016

Rupees

43,679,345 61,182,757 (67,122,839)

37,739,263 31,014,457

42,333,549 (32,774,509)

40,573,497 (2,834,234)

27,437,925 81,903,506 (78,830,376)

30,511,055 19,832,213

38,918,797 (43,537,655)

15,213,355 15,297,700

102,850,517 92,628,474 (67,122,839)

128,356,152 70,558,010

62,359,969 (32,774,509)

100,143,470 28,212,682

58,153,00495,262,698

153,415,702

111,671,755 81,513,870 (78,830,376)

114,355,249 61,706,230

16,008,814 (43,537,655)

34,177,389 80,177,860

48,847,219 132,063,804 180,911,023

48,068,079 44,646,355


4

5

6

7

8

9

Sept. 30,2017Rupees

Sept. 30,2016Rupees

Sept. 30,2017

Rupees Sept. 30,2016

Rupees



10

11

12

19,805,781 68,784,384

(70,390,009) 18,200,156

7,569,987 4,877,583

(13,416,340)

(968,770) 19,168,926

13,408,723 20,754,352 (21,870,867)

12,292,208

6,830,534 9,005,281 (7,013,084)

8,822,731

-

16,446 16,446

- 16,446

-

-

- -

13,976,104 38,867,848

(37,227,836) 15,616,116

295,599 -

-

295,599 15,320,517

7,990,680 36,687,505 (33,517,789)

11,160,396

4,671,102 4,034,991 (4,362,509)

4,343,584

-

- -

- -

-

- -

- -

65,406,07468,784,384

(76,720,654) 57,469,804

16,640,958 4,877,583

(13,971,100)

7,547,441 49,922,363

32,887,405 31,094,124 (21,870,867)

42,110,662

15,031,950 12,497,440 (7,013,084)

20,516,306

-

35,520 35,520

-

35,520

1,392,896

184,862 1,577,758

1,733,903 3,311,661

36,490,286 38,867,848

(19,238,156) 56,119,978

774,940 -

-

774,940 55,345,038

32,311,770 23,218,292 (33,517,789)

22,012,273

10,822,781626,255

(4,362,509) 7,086,527

-

- -

- -

531,684

1,788,312 2,319,996

- 2,319,996

NET TAKAFUL CLAIMSClaims PaidAdd: Outstanding claims including IBNR - ClosingLess: Outstanding claims including IBNR - Opening Claims expense

Less: Re-takaful and other recoveries receivedAdd: Re-takaful and other recoveries in respect ofoutstanding claims - ClosingLess: Re-takaful and other recoveries in respect of outstanding claims - OpeningRe-takaful and other recoveries revenue

NET REBATE ON RE-TAKAFULCommission paid or payableAdd: Deferred commission expense - OpeningLess: Deferred commission expense - Closing Net Commission

Less: Rebate on re-takaful Add: Unearned re-takaful rebate - Opening Less: Unearned re-takaful rebate - Closing Commission from reinsurers

INVESTMENT INCOMEParticipants' takaful fund Income from equity securities - Available for sale Dividend income Income from term deposits Return on term deposits

Net realised gain on investments Available for sale financial assets Realised gains on equity securities Total investment income

Operator's fund Income from equity securities - Available for sale Dividend income Income from term deposits Return on term deposits

Net realised gain on investments Available for sale financial assets Realised gains on equity securities Total investment income

12.1

12.2

34



Not

es T

o T

he C

onde

nsed

Inte

rim

Fin

anci

al S

tate

men

tsfo

r th

e qu

arte

r an

d ni

ne m

onth

s en

ded

Sept

embe

r, 30

, 201

7 (U

n-A

udite

d)

SEG

MEN

T R

EPO

RTIN

GT

he c

om

pany

has

four

pri

mar

y bu

sine

ss s

egm

ents

for

repo

rtin

g pu

rpo

se n

amel

y fir

e, m

arin

e, m

oto

r an

d m

isce

llane

ous

.A

sset

s an

d li

abili

ties,

whe

reve

r po

ssib

le, h

ave

been

ass

igne

d t

o t

he fo

llow

ing

segm

ents

bas

ed o

n sp

ecifi

c id

entifi

catio

n o

r al

loca

ted

on

the

basis

of

gro

ss c

ont

ribu

tion

wri

tten

by

the

segm

ents

.

Part

icip

ants

' tak

aful

fun

dN

et t

akaf

ul c

ont

ribu

tion

Net

tak

aful

cla

ims

Direc

t ex

pens

esN

et r

ebat

e o

n re

-tak

aful

Und

erw

riting

res

ults

Una

lloca

ted

sur

plus

Surp

lus

for

the

peri

od

Fire

Sep

t. 30,

2017

Sep

t. 30,

2016

Sep

t. 30,

2017

Sep

t. 3

0,

2016

Sep

t. 30,

2017

Sep

t. 30,

2016

Sep

t. 30,

2017

Sep

t. 30,

2016

Sep

t. 3

0,

2017

Sep

t. 30,

2016

Mar

ine

Moto

rM

isce

llaneo

us

TO

TA

L

(24

,637

,138

)

(1

4,03

3,58

4)

(2

,201

,615

)

15

,277

,101

(2

5,59

5,23

6)

1

4,32

7,17

2

(5,3

48,1

92)

(1,8

32,9

81)

4

,770

,757

11,

916,

757

(5,2

01,3

96)

2,7

34,8

47

(

551,

786)

2,

537,

681

(48

0,65

4)

8

,452

,862

(3,1

95,1

42)

(57

5,07

3)

1,21

1,91

1

5,89

4,55

8

49,0

81,6

14

(27,

116,

059)

(2,7

37,6

99)

762,

252

19

,990

,108

4

2,85

3,39

7

(26

,899

,223

)

(2,1

75,5

57)

26

3,42

5

14,

042,

043

8,96

9,60

2

(

11,5

07,5

67)

(1,7

27,3

67)

1,93

9,27

2

(2

,326

,060

)

14

,544

,428

(19,

902,

481)

(

506,

389)

84

0,43

4

(5,

024,

008)

28

,212

,682

(

49,9

22,3

63)

(7,2

18,4

68)

2

0,51

6,30

6

(8,4

11,8

43)

223

,155

(8

,188

,688

)

8

0,17

7,86

0 (

55,3

45,0

38)

(5,

089,

999)

7

,086

,527

26,

829,

350

11

4,00

9 2

6,94

3,35

9

Part

icip

ants

' tak

aful

fun

dSe

gmen

t as

sets

Una

lloca

ted

ass

ets

Ope

rato

r's

fund

Segm

ent

asse

tsU

nallo

cate

d a

sset

s

Tota

l as

sets

Part

icip

ants

' tak

aful

fun

dSe

gmen

t lia

bilit

ies

Una

lloca

ted

liab

ilitie

s

Ope

rato

r's

fund

Segm

ent

liabi

litie

sU

nallo

cate

d li

abili

ties

Tota

l lia

bilit

ies

Cap

ital

exp

endi

ture

Dep

reci

atio

n

72

,138

,268

8

,809

,827

55,

693,

043 -

5

,078

,404

1,

415,

388

13

0,36

7,02

2

15

,716

,493

88

,205

,756

-

2,

980,

045

1,

026,

087

15

,495

,384

44

6,89

3

1

0,74

5,96

7

-

1,2

72,7

90

3

54,7

36

20

,278

,639

5

88,2

25

17

,000

,151

-

6

71,1

22

2

31,0

81

63,9

62,0

17

7,07

0,33

5

62

,413

,302

-

6,31

4,97

2

1,76

0,02

9

8

6,84

6,44

9

1

3,12

1,86

1

9

4,72

9,20

0

-

3

,518

,123

1

,211

,357

3

9,47

2,12

4

5,5

43,8

12

43

,368

,893

-

3,98

4,47

0

1

,110

,501

19,

749,

983

1,6

67,5

42

31,

003,

167

-

696

,681

23

9,88

1

1

91,0

67,7

93

31,

423,

753

22

2,49

1,54

6

21,

870,

866

86,

880,

843

1

08,7

51,7

09

3

31,2

43,2

55

1

72,2

21,2

04

44,

915,

435

21

7,13

6,63

9

-

6

0,83

4,30

6

6

0,83

4,30

6

27

7,97

0,94

5

16,6

50,6

36

4,6

40,6

54

257

,242

,093

43,

917,

655

301

,159

,748

31,

094,

122

98,

505,

137

129

,599

,259

4

30,7

59,0

07

230

,938

,274

5

6,67

7,87

7

287,

616,

151

-

73,

396,

726

73,

396,

726

361

,012

,877

7

,865

,971

2

,708

,406

Fire

Sep

t. 30,

2017

Dec

31,

2016

Sep

t. 30,

2017

Dec

31,

2016

Sep

t. 30,

2017

Dec

31,

2016

Sep

t. 30,

2017

Dec

31,

2016

Sep

t. 30,

2017

Dec

31,

2016

Mar

ine

Moto

rM

isce

llaneo

us

TO

TA

L

13

35

15

16

Notes To The Condensed Interim Financial StatementsFor the quarter and nine months ended September 30, 2017 (Un-audited)

14

-

100 16,446

312 129,150 737 (113,115)

16,772

197,202 94,115 (52,889) 238,428

1,100,000 24,488 769,923

-

1,139 - 11,579

- 428,565

(426,538) 2,027

- 31,900

(21,900) 10,000

1,100,000 70,001 3,756,132

16,625,000

889 35,520

312 9,009

933,497 (925,734)

16,772

2,240,000 254,848

(2,256,420) 238,428

1,100,000 24,488 769,923

6,000,000

2,983 - 35,028

- 428,565 (426,538)

2,027

-31,900

(21,900) 10,000

1,100,000 70,001 3,756,132

RELATED PARTY TRANSACTIONSThe related parties comprise of United Track Systems (Pvt.) Limited, and Silk Bank Limited (Islamic - Emaan) on the basis ofrelated group companies, entities under common control, entities with common directors, major shareholders,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:

United Track System (Pvt.) Limited - (Associated Company)Tracker charges / devicesSilk Bank Limited - (Associated Company)Bank ChargesProfit on term deposit receiptsProfit on bank depositsBalance at beginning of the periodGross contribution written Received / adjusted during the periodBalance at the end of the period

Insurance claim expenseOutstanding claims at beginning of the periodGross claim expense for the periodClaim paid during the periodOutstanding claims at the end of the period

Other balances with associated companyTerm depositsProfit and loss sharing accountsCurrent accounts

DATE OF AUTHORIZATION FOR ISSUEThe condensed interim financial information was authorized for issue in accordance with a resolution of board of directorsof the Company on October, 26, 2017.

CORRESPONDING FIGURESCorresponding figures have been re-classified and re-arranged, wherever necessary, to conform with the current classification.However, there are no material re-classification to report.

GENERALFigures have been rounded up to the nearest rupee.

Sept. 30,2017Rupees

Sept. 30,2016Rupees

Sept. 30,2017Rupees

Sept. 30,2016Rupees


36


17


Notes

37


Contact Information

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

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

Documents

3rd Quarter Report 2017 - SPI Insurance Company Limited · NIB Bank Limited SILKBANK Limited ... Soneri Bank Limited State Bank of Pakistan Tameer Microﬁnance Bank Limited The Bank