- TPL Direct Insurance
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Title TPL Direct HR June 2015.ai 1 29/08/2015 11:27:09 AM HALF YEARLY REPORT JUNE 2015 C M Y CM MY CY CMY K TABLE OF CONTENTS TPL DIRECT INSURANCE C O NT E NT S 02 Company Information 03 Geographical Presence 04 Directors Report FINANCIAL STATEMENTS 06 Auditors Report to the Members 07 Condensed Interim Balance Sheet 09 Condensed Interim Profit and Loss 10 Condensed Interim Statement of Changes in Equity 11 Condensed Interim Statement of Cash Flow 13 Condensed Interim Statement of Premiums 14 Condensed Interim Statement of Claims 15 Condensed Interim Statement of Expenses 16 Condensed Interim Statement of Investment Income 17 Notes to the Condensed Interim Financial Information ANNEXURE A - WINDOW TAKAFUL OPERATIONS 24 Auditors Report to the Members 25 Condensed Interim Balance Sheet 27 Condensed Interim Profit and Loss 28 Condensed Interim Statement of Changes in Funds 29 Condensed Interim Statement of Cash Flow 30 Condensed Interim Statement of Contributions 31 Condensed Interim Statement of Claims 32 Condensed Interim Statement of Expenses - Operators Fund 33 Condensed Interim Statement of Expenses - Participants Fund 34 Condensed Interim Statement of Investment Income 35 Notes to the Condensed Interim Financial Information 37 Category of Shareholding 38 Pattern of Shareholding TPL DIRECT INSURANCE COMPANY INFORMATION 02 COMPANY INFORMATION Board of Directors Jameel Yusuf Ali Jameel Saad Nissar Andrew Borda Zuhair Mirza Waqar Ahmed Malik Syed Nadir Shah Chairman Director Director / CEO Director Director Director Director Company Secretary Syed Ali Hassan Zaidi BOARD COMMITTEE Audit Committee Syed Nadir Shah Ali Jameel Andrew Borda Hashim Sadiq Ali Chairman Member Member Secretary Human Resources & Remuneration Committee Syed Nadir Shah Chairman Ali Jameel Member Andrew Borda Member Waqar Ahmed Malik Member Nader Nawaz Secretary Finance & Investment Committee Ali Jameel Chairman Jameel Yusuf Member Andrew Borda Member Syed Kazim Hasan Secretary MANAGEMENT COMMITTEES Underwriting Committee Saad Nissar Andrew Borda Syed Kazim Hasan Kamran M. Hanif Chairman Member Member Member & Secretary Claims Committee Saad Nissar Syed Kazim Hasan Naveed Ahsan Chairman Member Member & Secretary Coinsurance & Reinsurance Committee Saad Nissar Chairman Andrew Borda Member Syed Kazim Hasan Member Naveed Ahsan Member Kamran M. Hanif Member & Secretary Bankers Habib Metropolitan Bank Limited Bank Al Habib Limited Dubai Islamic Bank Limited National Bank of Pakistan United Bank Limited Faysal Bank Limited NIB Bank Limited Burj Bank Limited JS Bank Limited Tameer Microfinance Bank Limited MCB Bank Limited Meezan Bank Limited Auditors Ernst & Young Ford Rhodes Sidat Hyder Chartered Accountants Legal Advisor Lari & Co. Maritime & Insurance Advocates Share Registrar THK Associates (Pvt) Ltd 2nd Floor, State Life Building-3 Dr. Ziauddin Ahmed Road, Karachi-75530, Pakistan Tel: (021) 35689021, 35686658 UAN: 111-000-322 Fax: (021) 35655595 Registered Office 11th & 12th Floor, Centrepoint, Off Shaheed-e-Millat Expressway, Adjacent KPT Interchange, Karachi-74900 UAN: (021) 111-000-301 Tel: (021) 37130223 Fax: (021) 35316031, 35316032 Web Presence www.tplinsurance.com TPL DIRECT INSURANCE GEOGRAPHICAL PRESENCE GEOGRAPHICAL PRESENCE Head Office Karachi 11th & 12th Floor, Centrepoint, Off Shaheed-e-Millat Expressway, Adjacent K.P.T. Interchange, Karachi - 74900 UAN: (021) 111-000-301 Fax: (021) 35316031 - 35316032 Tel: (021) 37130223 Branch Offices Lahore 51-M, Denim Road, Quaid-e-Azam Industrial Estate, Kot Lakhpat, Lahore. UAN: (042) 111-000-301 Fax: (042) 35157233 Islamabad Plot # 211, Street # 07, Sector I-9/2, Industrial Area, Islamabad. UAN: (051) 111-000-301 Fax: (051) 4443793-5 Faisalabad P-6161, West Canal Road, Faisalabad. Tel: (041) 8501471-3 Fax: (041) 8501470 Multan House # 5, Suraj Miani Road, Chungi # 1, Opp. Ashraf Cardiac Clinic, Multan. UAN: (061) 111-000-301 Fax: (061) 4519391 Hyderabad A-8, District Council Complex, Hyderabad. Tel: (022) 2728676 Fax: (022) 2783154 03 TPL DIRECT INSURANCE DIRECTORS REPORT 04 DIRECTORS REPORT On behalf of the Board of Directors, I am pleased to present the unaudited condensed interim financial statements of TPL Direct Insurance Ltd. for the half year ended 30th June 2015. Pakistans economy showed positive trends despite a turbulent political start to FY2015. The inflation rate remained low at 4.6% primarily due to falling crude oil prices. Foreign reserves improved from USD 14.1 billion to over USD 18 billion during the fiscal year with increased foreign remittances. Further, KSE index registered a steady growth of 16% though lower as compared to 41% in FY2014. Sighting longevity of the positive indicators, the State Bank of Pakistan reduced the discount rate by 300 bps during the fiscal year. With progress made on China Pakistan Economic Corridor, potential reclassification of Pakistan in the MSCI emerging market index, upgradation of rating outlook by Moodys from stable to positive and easing of political tension after judicial commissions report on election rigging, the economy is expected to show positive trends in FY2016; however, persistent energy crisis and ongoing military operation against terrorism will continue to have significant influence on the economy. Our premium growth continued its trajectory and achieved a growth of 34% during the period. Motor premium continues to be the prime constituent of overall insurance premium with 97% contribution to the total premium. This growth can be ascribed to the strengthening of the distribution network across Pakistan and agreements with leading banks for insurance of their auto leasing portfolios. Micro health products of the Company are drawing good responses and we are negotiating agreements with leading telecom operators and smart phone distributors to increase its penetration of micro health products across Pakistan. We are actively directing efforts to strengthen the product mix of the Company for which we are entering into corporate Fire and Marine business. The Company has secured reinsurance arrangement with Swiss Re for its Fire and Marine segment and is well placed to launch its Fire and Marine segment in the third quarter. Further, nationwide branches and business partner relationships are being strengthened to penetrate other lines of business. The Window Takaful Operations of the Company is gaining pace and after successful launch of motor takaful products, the Company is planning to launch all non-life products with its Window Takaful Operations. Our results for the half year ended 30 June 2015 closed on a mixed note. Overall premium / contribution written for the period increased to PKR 810.24 million from PKR 606.38 million of the corresponding period (Premium PKR 576.07 million and Takaful Contributions PKR 234.17 million), achieving a healthy growth of approximately 34%. The overall claims TPL DIRECT INSURANCE DIRECTORS REPORT 05 ratio for the period remained at 52.2% (Conventional 50.2% and Takaful 63.4%) against 49.4% of last years corresponding period. With higher claims ratio and expenses the overall profitability of the Company declined and resulted in a profit after tax of PKR 10.73 million against a profit after tax of PKR 36.46 million of the corresponding period last year [EPS: June 2015 0.17 , June 2014: 0.70]. The Operator Fund of the Window Takaful Operations registered a loss after tax of PKR 3.1 million whereas Participant Takaful Fund of the Window Takaful Operations of the Company registered a deficit of PKR 27.8 million during the period. Management strongly believes that perpetual focus on efficiency and transparency in customer services is imperative to our growth and success. In this pursuit, we are investing in related technologies to provide our customers with unprecedented service levels via automated renewals, claim notification, fair and fastest claims settlements and round-the-clock insurance services through our Yodelee app. We would like to thank all our stakeholders, business partners, Karachi Stock Exchange, Securities and Exchange Commission of Pakistan and staff for their continued support. For and on behalf of the Board of Directors Saad Nissar Chief Executive Officer TPL DIRECT INSURANCE FINANCIAL STATEMENTS 06 AUDITORS REPORT TO MEMBERS ON REVIEW OF INTERIM FINANCIAL INFORMATION Introduction We have reviewed the accompanying condensed interim balance sheet of TPL Direct Insurance Limited as at 30 June 2015 and the related condensed interim profit and loss account, condensed interim statements of changes in equity, cash flows, premiums, claims, expenses and investment income and notes forming part thereof (here-in-after referred to as the interim financial information) for the six-months period then ended. Management is responsible for the preparation and presentation of this 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 interim financial information based on our review. Scope of review We conducted our review in accordance with International Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquires, primarily of 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 the 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 interim financial information is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. Other Matters The condensed interim financial information of the Company for the half year ended 30 June 2014 and the financial information for the year ended 31 December 2014 were reviewed / audited by other firm of Chartered Accountants, whose review report dated 29 August 2014 and audit report dated 17 March 2015 expressed an unmodified conclusion and unmodified opinion respectively on the aforementioned financial information. ERNST & YOUNG FORD RHODES SIDAT HYDER CHARTERED ACCOUNTANTS Engagement Partner: Arslan Khalid Date: 25 August 2015 Karachi TPL DIRECT INSURANCE AUDITORS REPORT + BALANCE SHEET Condensed Interim Balance Sheet (Unaudited) As at 30 June 2015 07 TPL DIRECT INSURANCE FINANCIAL STATEMENTS 08 Condensed Interim Balance Sheet (Unaudited) As at 30 June 2015 Saad Nissar Chief Executive Ali Jameel Director Andrew Borda Director Jameel Yusuf Chairman TPL DIRECT INSURANCE BALANCE SHEET + PROFIT AND LOSS ACCOUNT Condensed Interim Profit and Loss Account (Unaudited) For the three months period and six months period ended 30 June 2015 Saad Nissar Chief Executive Ali Jameel Director Andrew Borda Director Jameel Yusuf Chairman 09 TPL DIRECT INSURANCE FINANCIAL STATEMENTS 10 Condensed Interim Statement of Changes in Equity (Unaudited) For the three months period and six months period ended 30 June 2015 Saad Nissar Chief Executive Ali Jameel Director Andrew Borda Director Jameel Yusuf Chairman TPL DIRECT INSURANCE STATEMENT OF CHANGES IN EQUITY + STATEMENT OF CASH FLOW Condensed Interim Statement of Cash Flow (Unaudited) For the six months period ended 30 June 2015 11 TPL DIRECT INSURANCE FINANCIAL STATEMENTS 12 Condensed Interim Statement of Cash Flow (Unaudited) For the six months period ended 30 June 2015 Saad Nissar Chief Executive Ali Jameel Director Andrew Borda Director Jameel Yusuf Chairman Ali Jameel Director Andrew Borda Director Jameel Yusuf Chairman STATEMENT OF CASH FLOW + STATEMENT OF PREMIUM Saad Nissar Chief Executive Condensed Interim Statement of Premium (Unaudited) For the three months period and six months period ended 30 June 2015 TPL DIRECT INSURANCE 13 Ali Jameel Director Andrew Borda Director Jameel Yusuf Chairman FINANCIAL STATEMENTS Saad Nissar Chief Executive Condensed Interim Statement of Claims (Unaudited) For the three months period and six months period ended 30 June 2015 TPL DIRECT INSURANCE 14 Ali Jameel Director Andrew Borda Director Jameel Yusuf Chairman STATEMENT OF CLAIMS + STATEMENT OF EXPENSES Saad Nissar Chief Executive Condensed Interim Statement of Expenses (Unaudited) For the three months period and six months period ended 30 June 2015 TPL DIRECT INSURANCE 15 TPL DIRECT INSURANCE FINANCIAL STATEMENTS 16 Condensed Interim Statement of Investment Income (Unaudited) For the three months period and six months period ended 30 June 2015 Saad Nissar Chief Executive Ali Jameel Director Andrew Borda Director Jameel Yusuf Chairman TPL DIRECT INSURANCE STATEMENT OF INVESTMENT INCOME + NOTES TO THE FINANCIAL STATEMENTS Notes to the Condensed Interim Financial Information (Unaudited) For the six months period ended 30 June 2015 17 TPL DIRECT INSURANCE FINANCIAL STATEMENTS 18 TPL DIRECT INSURANCE NOTES TO THE FINANCIAL STATEMENTS 19 TPL DIRECT INSURANCE FINANCIAL STATEMENTS 20 TPL DIRECT INSURANCE NOTES TO THE FINANCIAL STATEMENTS 21 TPL DIRECT INSURANCE FINANCIAL STATEMENTS 22 TPL DIRECT INSURANCE NOTES TO THE FINANCIAL STATEMENTS 23 These financial statements have been authorised for issue on 25 August 2015 by the Board of Directors of the Company. Saad Nissar Chief Executive Ali Jameel Director Andrew Borda Director Jameel Yusuf Chairman TPL DIRECT INSURANCE FINANCIAL STATEMENTS - WTO 24 AUDITORS REPORT TO MEMBERS ON REVIEW OF INTERIM FINANCIAL INFORMATION Introduction We have reviewed the accompanying condensed interim balance sheet of TPL Direct Insurance Limited - Window Takaful Operations (the Operator) as at 30 June 2015 and the related condensed interim profit and loss account, condensed interim statements of changes in fund, cash flows, contributions, claims, expenses of operators fund, expenses of participants takaful fund and investment income and notes forming part thereof (here-inafter referred to as the interim financial information) for the six-months period then ended. Management is responsible for the preparation and presentation of this 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 interim financial information based on our review. Scope of review We conducted our review in accordance with International Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquires, primarily of 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 the 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 interim financial information is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. ERNST & YOUNG FORD RHODES SIDAT HYDER CHARTERED ACCOUNTANTS Engagement Partner: Arslan Khalid Date: 25 August 2015 Karachi TPL DIRECT INSURANCE AUDITORS REPORT + BALANCE SHEET WINDOW TAKAFUL OPERATIONS Condensed Interim Balance Sheet (Unaudited) As at 30 June 2015 25 Annexure A as referred in Note 2.4 to the financial statements of TPL Direct Insurance Limited TPL DIRECT INSURANCE FINANCIAL STATEMENTS - WTO 26 WINDOW TAKAFUL OPERATIONS Condensed Interim Balance Sheet (Unaudited) As at 30 June 2015 Saad Nissar Chief Executive Ali Jameel Director Andrew Borda Director Jameel Yusuf Chairman TPL DIRECT INSURANCE BALANCE SHEET + PROFIT AND LOSS ACCOUNT WINDOW TAKAFUL OPERATIONS Condensed Interim Profit and Loss Account (Unaudited) For the three months period and six months period ended 30 June 2015 Saad Nissar Chief Executive Ali Jameel Director Andrew Borda Director Jameel Yusuf Chairman 27 TPL DIRECT INSURANCE FINANCIAL STATEMENTS - WTO 28 WINDOW TAKAFUL OPERATIONS Condensed Interim Statement of Changes in Fund (Unaudited) For the three months period and six months period ended 30 June 2015 Saad Nissar Chief Executive Ali Jameel Director Andrew Borda Director Jameel Yusuf Chairman TPL DIRECT INSURANCE STATEMENT OF CHANGES IN FUND + STATMENT OF CASH FLOW WINDOW TAKAFUL OPERATIONS Condensed Interim Statement of Cash Flow (Unaudited) For the six months period ended 30 June 2015 Saad Nissar Chief Executive Ali Jameel Director Andrew Borda Director Jameel Yusuf Chairman 29 Ali Jameel Director Andrew Borda Director Jameel Yusuf Chairman FINANCIAL STATEMENTS - WTO Saad Nissar Chief Executive WINDOW TAKAFUL OPERATIONS Condensed Interim Statement of Contributions (Unaudited) For the three months period and six months period ended 30 June 2015 TPL DIRECT INSURANCE 30 Ali Jameel Director Andrew Borda Director Jameel Yusuf Chairman STATEMENT OF CONTRIBUTIONS + STATEMENT OF CLAIMS Saad Nissar Chief Executive WINDOW TAKAFUL OPERATIONS Condensed Interim Statement of Claim (Unaudited) For the three months period and six months period ended 30 June 2015 TPL DIRECT INSURANCE 31 Ali Jameel Director Andrew Borda Director Jameel Yusuf Chairman FINANCIAL STATEMENTS - WTO Saad Nissar Chief Executive WINDOW TAKAFUL OPERATIONS Condensed Interim Statement of Expenses - Operators Fund (Unaudited) For the three months period and six months period ended 30 June 2015 TPL DIRECT INSURANCE 32 Saad Nissar Chief Executive Ali Jameel Director Andrew Borda Director WINDOW TAKAFUL OPERATIONS Condensed Interim Statement of Expenses - Participants Fund (Unaudited) For the three months period and six months period ended 30 June 2015 Jameel Yusuf Chairman TPL DIRECT INSURANCE STATEMENT OF EXPENSES - OPERATORS FUND + STATEMENT OF EXPENSES - PARTICIPANTS FUND 33 TPL DIRECT INSURANCE FINANCIAL STATEMENTS - WTO 34 WINDOW TAKAFUL OPERATIONS Condensed Interim Statement of Investment Income (Unaudited) For the three months period and six months period ended 30 June 2015 Saad Nissar Chief Executive Ali Jameel Director Andrew Borda Director Jameel Yusuf Chairman TPL DIRECT INSURANCE STATEMENT OF INVESTMENT INCOME + NOTES TO THE FINANCIAL INFORMATION WINDOW TAKAFUL OPERATIONS Notes to the Condensed Interim Financial Information (Unaudited) For the six months period ended 30 June 2015 35 TPL DIRECT INSURANCE FINANCIAL STATEMENTS - WTO 36 WINDOW TAKAFUL OPERATIONS Notes to the Condensed Interim Financial Information (Unaudited) For the six months period ended 30 June 2015 These financial statements have been authorised for issue on 25 August 2015 by the Board of Directors of the Company. Saad Nissar Chief Executive Ali Jameel Director Andrew Borda Director Jameel Yusuf Chairman TPL DIRECT INSURANCE Category of Shareholding As on 30 June 2015 NOTES TO THE FINANCIAL INFORMATION + CATEGORY OF SHAREHOLDING 37 TPL DIRECT INSURANCE Pattern of Shareholding As on 30 June 2015 CORPORATE GOVERNANCE 38 Title TPL Direct HR June 2015.ai 1 29/08/2015 11:27:09 AM HALF YEARLY REPORT JUNE 2015 C M Y CM MY CY CMY K
