Reliance Insurance : Transmission of Quarterly Report for the Period Emded 31-03-2024

QUARTERLY

REPORT

Quarter Ended March 31

2024

(Un-Audited)

S E R V I N G

R E L I A B L Y

					RELIANCE
Reliance Insurance	Window Takaful
Company Limited

Reliance Insurance Company Limited

CONTENTS

01 FINANCIALSTATEMENTS

1. Company Information
2. Directors' Review

04 Directors' Review in Urdu

1. Condensed Interim Statement of Financial Position
2. Condensed Interim Profit & Loss Account
3. Condensed Interim Statement of Comprehensive Income
4. Condensed Interim Statement of Changes in Equity
5. Condensed Interim Statement of Cash Flow

1. Notes to the Condensed Interim Financial Statements

02 RELIANCE WINDOW

TAKAFUL OPERATIONS

1. Financial Statements Reliance Window Takaful Operations
2. Condensed Interim Statement of Financial Position

1. Condensed Interim Profit & Loss Account
2. Condensed Interim Statement of Comprehensive Income
3. Condensed Interim Statement of Changes in Fund
4. Condensed Interim Statement of Cash Flow

1. Notes to the Condensed Interim Financial Statements

1. Offices

			R TED
			'A+'
			(Outlook: 'Stable')
			By VIS & PACRA
COMPANY
INFORMATION
Board Of Directors	Audit Committee		Credit Rating
Chairman	Tasneem Yusuf	Chairperson	A+ ( Single A+ ) By VIS & Pacra
Irfan Zakaria Bawany	Irfan Zakaria Bawany	Member	Outlook "Stable"
Directors	Muhammad Omar Bawany Member	Auditors
Muhammad Omar Bawany	Investment Committee		BDO Ebrahim & Co.
Ahmed Ali Bawany	Irfan Zakaria Bawany	Chairman	Chartered Accountants
Noor M. Zakaria	Ahmed Ali Bawany	Member	Legal Advisor
Zia Zakaria	Tasneem Yusuf	Member
Muhammad Patel	Muhammad Patel	Member	Irfan Advocate
Naeem Ahmed Shafi	A. Razak Ahmed	Member	Shari'ah Advisor
Tasneem Yusuf	Muhammad Salim Memon Secretary
Jahangir Adam	Ethics, Human Resource &		Mufti Muhammad Farhan Farooq
Chief Executive & Managing Director
Remuneration Committee
A. Razak Ahmed	Naeem Ahmed Shafi	Chairman
Chief Financial Officer	Irfan Zakaria Bawany	Member
Noor M. Zakaria	Member
Ghulam Haider	A. Razak Ahmed	Member
Company Secretary & Compliance Officer
Faraz Abdul Razak
Bankers	Registered Office		Shares Registrar
Habib Bank Limited	96-a, Sindhi Muslim Co-operative	M/s. C&k Management
Mcb Bank Limited	Housing Society, Karachi.		Associates (Pvt.) Ltd.
Allied Bank Limited			404-trade Tower,
Soneri Bank Limited	Head Office		Abdullah Haroon Road,
Bank Alfalah Limited	Reliance Insurance House, 181-A,	Near Hotel Metropole,
National Bank Of Pakistan	Sindhi Muslim Co-operative Housing	Karachi-75530.
Meezan Bank Limited	Society, P .O. Box No. 13356,	Tel: [phone] & 35685930
Dubai Islamic Bank	Karachi-74400.
Mcb Islamic Bank Limited	Phone : [phone]
United Bank Limited	Fax : [phone]
The Bank Of Punjab	E-mail :[e-mail]
Faysal Bank Limited	[e-mail]
Habib Metropolitan Bank Limited	Website: www.relianceins.com
Js Bank Limited
The Bank Of Khyber

02

RELIANCE INSURANCE COMPANY LIMITED

DIRECTORS' REVIEW

The Shareholders,

Reliance Insurance Company Limited,

Your Directors are pleased to present before you the First Quarter (Un-audited) Account for the period ended March 31, 2024.

During the period under review, your Company underwrote a Gross Premium of Rs.238.897 million (inclusive of Takaful Contribution for Rs.27.462 million) as compared to Rs.211.002 million of the corresponding period of last year (inclusive of Takaful Contribution for Rs.19.321million) - an increase of 13.22%. Net Premium stood at Rs.125.144 million as against Rs.117.576 million of last year showing an increase of 6.44%.

Net Claims stood at Rs.28.721 million compared to Rs.33.801 million of corresponding period of last year, underwriting prot increased from Rs.25.815 million to Rs.26.206 million.

The Total Investment income for the quarter has witnessed a substantial upturn, reaching Rs.77.487 million from Rs.18.675 million, marking an impressive surge of 314.92% compared to the previous year. This signicant growth is predominantly attributed to the outstanding performance of the Pakistan Stock Exchange, which led to an unrealized gain of Rs.41.932 million, against an unrealized loss of Rs.12.487 million in the corresponding period of the previous year. Furthermore, the Dividend Income has also experienced positive growth, rising from Rs.23.974 million to Rs.29.888 million, demonstrating an increase of Rs.5.914 million. Throughout the period under review, the Pakistan Stock Exchange Index surged from 62,451.04 points as of December 31, 2023, to 67,005.10 points as of March 31, 2024, indicating a positive market trend.

Prot before tax stood at Rs.100.747 million against Rs.39.190 million of corresponding period of last year. Earnings per share (EPS) stood at Re.1.49 compared to Re.0.24 - (Restated) for the corresponding period of last year. There is an Accumulated surplus from Window Takaful Operators Fund of Rs.77.696 million as at 31st March, 2024 as compared to Rs.54.436 million of previous year.

Future Outlook:

Business development in current scenario is quite challenging. In the current business landscape, we encounter signicant challenges, as highlighted by the State Bank of Pakistan (SBP)'s projection of average ination to range between 23-25 percent in FY24, with an anticipated downward trend in FY25. Additionally, geopolitical tensions have caused a surge in global freight charges, posing risks to global trade and commodity prices. To counteract inationary pressures and maintain currency stability, the SBP has upheld a record-high policy rate of 22 percent since June 2023.

Despite these formidable challenges, there are promising signs in agriculture and indications of potential recovery in the industrial sector. However, persistent risks such as budget decits, escalating debt obligations, and soaring ination continue to loom, posing threats to economic stability. Negotiating a new International Monetary Fund (IMF) program is pivotal in securing sustainable nancing solutions.

In the face of these circumstances, embracing bold and innovative strategies becomes imperative. We hold steadfast condence in our team's ability to navigate these challenges and strive for positive outcomes. Furthermore, our Takaful operations present additional avenues and opportunities to enhance our company's business, culminating in our growth and success.

By order of the Board

	A. RAZAK AHMED
Karachi: 29th April, 2024	Chief Executive & Managing Director

QUARTER ENDED REPORT MARCH 2024

03

2024	29
04 RELIANCE INSURANCE COMPANY LIMITED

OUR SERVICES

Reliance Insurance underwrites all classes of General

Insurance and enjoys reputation second to none. Apart from Conventional General Insurance RIC has also commenced its General Takaful operations in the year 2016.

General Insurance		General Takaful
(Conventional)	RELIANCE	(Islamic)

Reliance Insurance commenced its general insurance business in 1981 and it underwrites all classes of traditional and non-traditional lines.

Reliance Insurance is offering a wide range of covers such as Fire & Property, Marine Cargo, Motor Vehicles (Commercial & Private), Personal Accident, Money Insurance, Burglary & Liability (Public & Product) and Workmen Compensation while non-traditional covers such as Engineering Risks (MBD, CAR, EAR), Aviation Insurance, Terrorism & Sabotage and Bonds are also being offered.

Takaful is an Islamic alternate of Insurance and is growing steadily. Reliance Insurance commenced its Window Takaful Operations in June 2016 under the guidance of renowned, qualied and certied Sharia Scholars.

Reliance Takaful is offering a wide range of Sharia Compliant General Takaful Products such as Fire & Property Takaful, Marine Cargo Takaful, Motor Takaful (Private / Commercial Vehicles), Engineering Takaful, (MBD, CAR, EAR), Money Takaful, Liability (Public & Private) Takaful and Personal & Group Accident Takaful, etc.

QUARTER ENDED REPORT MARCH 2024

05

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT MARCH 31, 2024

Note

ASSETS

(Un-audited)	(Audited)
March 31,	December 31,
2024	2023

Rupees

Property and equipment	6
Intangible assets
Investment
Equity securities	8
Debt securities	8.1
Term deposit	8.2
Loan and other receivables	9
Insurance / Reinsurance receivables	10
Reinsurance recoveries against outstanding claims
Deferred Commission Expense
Prepayments	12
Cash & Bank	13

Total Assets of Window Takaful Operatoins-Operator's Fund

TOTAL ASSETS

EQUITY AND LIABILITIES

Capital and reserves attributable to Company's equity holders

Ordinary share capital	14
Reserves
Unappropriated Prot
Surplus on revaluation of available for sale investment
Total Equity
Liabilities
Underwriting Provisions
Outstanding claims including IBNR
Unearned premium reserves
Unearned Reinsurance Commission
Insurance / Reinsurance Payables
Other Creditors and Accruals	15
Deferred taxation

Taxation - provision less payments

Total Liabilities

Total Liabilities of Window Takaful Operations-Operators Fund

TOTAL EQUITY AND LIABILITIES

CONTINGENCIES AND COMMITMENTS

84,510,900

-

918,359,038

70,092,591

42,021,980

1,030,473,609

20,324,834

528,150,287

197,790,400

90,984,213

181,605,408

110,838,878

2,244,678,529

161,017,969

2,405,696,498

665,379,490

310,000,000

324,172,002

36,882,583

1,336,434,075

257,341,136

417,952,754

37,758,716

713,052,606

205,951,657

62,334,577

20,815,443

33,797,107

1,035,951,390

33,311,033

2,405,696,498

87,159,556

-

839,874,670

70,092,591

42,628,618

952,595,879

5,135,425

537,186,737

176,420,765

95,312,664

194,268,623

108,555,276

2,156,634,925

155,881,702

2,312,516,627

665,379,490

310,000,000

225,049,587

21,992,211

1,222,421,288

230,153,423

440,170,615

39,285,465

709,609,503

216,603,821

76,108,264

30,143,866

22,637,371

1,055,102,825

34,992,514

2,312,516,627

The annexed notes from 1 to 25 form an integral part of this condensed interim nancial information.

Irfan Zakaria Bawany	Mohammad Omar Bawany	Noor M. Zakaria	Ghulam Haider	A. Razak Ahmed
Chairman	Director	Director	Chief Financial Ofcer	Chief Executive & Managing Director

Karachi: 29th April, 2024

06

RELIANCE INSURANCE COMPANY LIMITED

CONDENSED INTERIM PROFIT & LOSS ACCOUNT (UN AUDITED)

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024

Note

(Un-audited)	(Un-audited)
March 31,	March 31,
2024	2023

Rupees

Net insurance premium	17
Net insurance claims	18
Net Commission and other acquisition costs	19
Insurance claims and acquisition expenses
Management Expenses
Underwriting results
Investment Income	20
Other income
Other expenses
Prot before tax from takaful operations-Operators Fund
Prot before tax
Income tax expense
Prot after tax
Earnings after tax per share - Rupees	21

125,143,612

(28,721,222)

(29,903,560)

(58,624,782)

(40,313,191)

26,205,639

77,486,862

2,590,646

(15,212,066)

64,865,441

9,676,100

100,747,181

(1,624,766)

99,122,415

1.49

117,576,547

(33,800,566)

(23,604,906)

(57,405,472)

(34,356,322)

25,814,753

18,675,234

1,362,877

(12,749,905)

7,288,206

6,086,796

39,189,755

(23,361,534)

15,828,221

Restated 0.24

The annexed notes from 1 to 25 form an integral part of this condensed interim nancial information.

Irfan Zakaria Bawany	Mohammad Omar Bawany	Noor M. Zakaria	Ghulam Haider	A. Razak Ahmed
Chairman	Director	Director	Chief Financial Ofcer	Chief Executive & Managing Director

Karachi: 29th April, 2024

QUARTER ENDED REPORT MARCH 2024

07

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN AUDITED)

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024

(Un-audited)	(Un-audited)
March 31,	March 31,
2024	2023

Rupees

Prot after tax

Other Comprehensive Inocme

Surplus / Defecit on revaluation of available for sale securities

Less: Net gain transferred to prot and loss on disposal / redemption of investment

Surplus on revaluation of available for sale securities - takaful

Impact of related deferred taxation including change in tax rate

Total comprehensive income income for the period

99,122,415

20,538,404

507,593

(52,286)

(6,103,339)

14,890,372

114,012,787

15,828,221

1,206,906

-

-

(350,004)

856,902

16,685,123

The annexed notes from 1 to 25 form an integral part of this condensed interim nancial information.

Irfan Zakaria Bawany	Mohammad Omar Bawany	Noor M. Zakaria	Ghulam Haider	A. Razak Ahmed
Chairman	Director	Director	Chief Financial Ofcer	Chief Executive & Managing Director

Karachi: 29th April, 2024

08

RELIANCE INSURANCE COMPANY LIMITED

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY ( UN AUDITED)

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024

				Revenue Reserves
	Share			General			Surplus		Unappro-
			on revalution		priated	Total
	capital			reserves
					of AFS		prot /
						investments	(Accumulated)
Balance as at January 01, 2023							(Rupees)
633,694,750	290,000,000	49,196	136,521,419		1,060,265,365
Total comprehensive income for the period	-		-	856,902	15,828,221		16,685,123
Balance as at March 31, 2023
633,694,750	290,000,000	906,098	152,349,640		1,076,950,488
Balance as at January 01, 2024
665,379,490	310,000,000	21,992,211	225,049,587		1,222,421,288
Total comprehensive income for the period	-		-	14,890,372	99,122,415		114,012,787
Balance as at March 31, 2024
665,379,490	310,000,000	36,882,583	324,172,002		1,336,434,075

The annexed notes from 1 to 25 form an integral part of this condensed interim nancial information.

Irfan Zakaria Bawany	Mohammad Omar Bawany	Noor M. Zakaria	Ghulam Haider	A. Razak Ahmed
Chairman	Director	Director	Chief Financial Ofcer	Chief Executive & Managing Director

Karachi: 29th April, 2024

QUARTER ENDED REPORT MARCH 2024

09