On back of impressive earnings release, shares of Jubilee General Insurance (PSX:JGICL) climbed 1.3 percent on Thursday - a session that saw the benchmark index dip one percent. The country's third largest non-life insurer saw healthy growth in key metrics, higher than in recent years.
Net premiums rose to Rs4.15 billion in CY15, up 13.9 percent year-on-year. This compares well to Jubilee's net premium-CAGR of 10.4 percent from 2010 through 2014. In the same time, overall non-life sector averaged a 6.7 percent growth per annum.
Motor insurance remained the top performer for Jubilee courtesy of booming auto sector, bringing in Rs1.07 billion in net premiums, 17 percent more than CY14. Fire and property insurance narrowed the gap from accident and health insurance; the segments netted Rs.849 million and Rs905 million in premiums respectively. Marine, aviation and transport business saw a downturn in 2015.
Subdued growth in claims resulted in a hefty 70 percent rise in underwriting result for the firm. Even though growth in commission payments outpaced the premiums growth comprehensively, the core business numbers depict Jubilees operational strength in the recently concluded year. Also, despite a turbulent year for equities, the firm's investment income rose 31 percent YoY.
Jubilee reported an Rs13 million loss from nascent window Takaful operations. In the coming years, Shariah-compliant products are expected to be accretive for insurers.
Jubilee's profit rallied 25 percent from last year to Rs1.35 billion (or Rs.8.62 per share). The growth is in line with the four-year CAGR, but lower than the industry's average in the same period.
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