Jubilee Life Insurance Company Limited (JLICL) reported a net profit of PKR 1.74 billion (EPS: PKR 17.32) in 9MCY24. This represents a 17% increase compared to PKR 1.48 billion (EPS: PKR 14.77) in the SPLY. Net premium income for 9MCY24 increased by 3% year-onyear to PKR 33.52 billion, compared to PKR 32.43 billion in 9MCY23.
The premium segment composition includes 38% from individual life unit-linked, 20% from individual family Takaful, 26% from accident and health business, 10% from conventional business, and 6% from others. JLICL operates 151 branches across Pakistan and serves over 4,000 corporate clients.
It has the largest panel network of more than 600 hospitals in the country. The company launched conventional traditional products, including the Super Endowment Plan and Jubilee Noor Plan. JLICL is the largest player in the bancassurance segment, with the highest number of bank partnerships. Habib Bank Limited contributes 40% of its total bancassurance business.
The company shifted its focus towards corporate business from retail business, which has been impacted by higher inflation and reduced consumer purchasing power.
Despite these challenges, both retail and corporate segments recorded growth in 3QCY24, with a 10% increase in gross written premiums. The company enhanced its retail sales through bancassurance and its direct sales force. Investment income posted double-digit growth in 9MCY24, driven by mutual funds and government securities.
The company benefited from revaluation gains due to declining interest rates. A significant portion of its investment portfolio remains in unit-linked products. JLICL is exploring the launch of a Voluntary Pension Scheme (VPS) fund, either as a standalone fund or through existing offerings, in response to the government’s focus on VPS schemes. Management reported a 50% split between conventional and Takaful business, indicating the company’s readiness to transition to a zero-interest model. With Pakistan moving towards a Riba-free economy, JLICL anticipates growth opportunities in Ijarah Sukuk and similar Shariah-compliant instruments.
Looking ahead, the company plans to expand its digital business to enhance performance in 4QCY24. It aims to sustain its payout ratio, contingent on improved income levels.
Important Disclosures
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