Adamjee Insurance Company has deferred the announcement and approval of the annual accounts for the year ended December 31, 2003.
Adamjee Insurance through a notice on Tuesday informed the Karachi Stock Exchange (KSE) that a meeting of the board of directors of the company was scheduled to be held on Tuesday, March 30 at the registered office of the company in Karachi to consider annual accounts (audited) for the year ended December 31, 2003, but in the meantime the judgement of Supreme Court of Pakistan came, which appeared in the newspapers.
Because of this the company has now to hold the annual general meetings for the years 2002 to 2004 for adopting annual accounts for the years 2001 to 2003, and the election of the directors which also could not be held.
The company further said that certified copy of the said judgement has not yet been received.
The directors are considering further line of action including seeking of guidance from the Securities and Exchange Commission of Pakistan. Therefore, in a meeting on Tuesday, the directors deferred the consideration and approval of the annual accounts for the year ended December 31, 2003.
Kashif Artani, research analyst from Investcapital Securities, said that Adamjee Insurance may post after-tax profit of Rs 350 million to Rs 380 million in 2003, a growth of 60-74 percent over Rs 219 million profits in 2002.
This excellent performance would be due to improved underwriting business and better investment income, thanks to capital gain on equities and rising dividends, he added.
Underwriting business is expected to improve in 2003 on the back of a jump of more than 15 percent in the gross premium. Increased car sales also bode well for motor insurance business, while increased external trade will support Adamjee's marine business.
He said that the company has closed its Saudi business due to strict paid-up capital requirements and also minimised its UAE operations.