Jubilee tastes great in Life!

Big players play big matches! And Jubilee Life Insurance precisely knows how to cheer its audience even in the toughest matches. Being the largest private sector life insurer, the companys performance curve is steep after a remarkable, 47 percent year-on-year bottomline growth in 9MCY14.
On the operational front, the net premium depicting a healthy growth of 30 percent year-on-year in 9MCY14 is a manifestation of sturdy positioning of the company. However, lack of availability of detailed financials limits us to comment on whether this growth is attributable to fresh insurance business or renewal of existing policies. Claims, however, are soaring to new highs, with the growth being even higher than the topline.
Besides, investment income had a fair share in boosting the bottom line as it soared by a healthy 36 percent during the period. Burgeoning investment income is an outcome of hefty spending on high-yielding government securities by the company - indeed a fantastic payoff at a time when equity market is tear-jerking.
Moreover, the companys fund managers like to play safe; at least the investment portfolio reflects that notion. If the June 2014 financial numbers are any guide, government securities represent nearly three-fourth of the investment portfolio of Jubilee Life. No wonder, the investment mix is adequately balanced from an insurers perspective.

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Jubilee Life Insurance - Financial Highlights

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Rs(mn)                                 9MCY14    9MCY13     Chg

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Revenue

Premium revenues net of reinsurance    14,631    11,215     30%

Investment income and other income      3,369     2,471     36%

Expenses

Claims net of reinsurance              12,281     9,206     33%

Management expenses                     4,295     3,541     21%

Surplus available in revenue account    1,424       939     52%

Surplus transferred to profit &

loss account                            1,195       785     52%

P&L account before appreciation of

surplus to shareholders fund              70        83    -16%

Profit before tax                       1,265       868     46%

Taxation                                (405)     (281)     44%

Profit after taxation                     860       587     47%

EPS (Rs.)                               11.92     8.15

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Source: KSE announcement