IGI INSURANCEHALF YEARLY REPORT JUNE-2016 1 information 2 HALF YEARLY REPORT JUNE-2016IGI INSURANCE...

IGI INSURANCE HALF YEARLY REPORT JUNE-2016 1

contents

Shareholder’s Information

Pattern of Shareholding

Directors’ Report to the Shareholders on UnconsolidatedCondensed Interim Financial Information

Directors’ Report to the Shareholders on Consolidated

Consolidated Condensed Interim Financial Information

Condensed Interim Financial Information

Company Information2

3

5

23

25

42

43

Directors’ Report to the Shareholders on Consolidated (Urdu)44

Directors’ Report to the Shareholders on Unconsolidated (Urdu)45

Unconsolidated Condensed Interim Financial Information

Auditors' Report to the Members on Review of InterimFinancial Information

4

company information

IGI INSURANCEHALF YEARLY REPORT JUNE-20162

Chief Executive OfficerTahir Masaud

Chief Technical OfficerFaisal Khan

Chief Financial OfficerAbdul Haseeb

Audit CommitteeShamim Ahmad Khan (Chairman)Syed Yawar AliSyed Hyder AliFaryal JoomaMuhammad Junaid Qamar (Secretary)

AuditorsA.F. Ferguson & Co.Chartered Accountants

Investment CommitteeSyed Hyder Ali (Chairman)Shamim Ahmad KhanSyed Yawar AliOsman Khalid WaheedTahir MasaudAbdul HaseebSajjad Iftikhar (Secretary)

Company SecretaryAdil Ali Abbasi

BankersAllied Bank LimitedBank Al Habib LimitedBank Islami Pakistan LimitedFaysal Bank LimitedHabib Bank LimitedHabib Metropolitan BankJS Bank LimitedMCB Bank LimitedNational Bank of PakistanNIB Bank LimitedSoneri Bank LimitedStandard Chartered Bank(Pakistan) LimitedUnited Bank Limited

Claims CommitteeShamim Ahmad Khan (Chairman)Tahir MasaudAbdul HaseebAsad Ali SiddiquiKashif QayyumZahid Mehmood (Secretary)

Underwriting CommitteeSyed Hyder Ali (Chairman)Tahir MasaudFaisal KhanHaider AliJamshaid Hussain (Secretary)

Human Resources &Compensation Committee

Syed Yawar Ali (Chairman)Syed Shahid AliSyed Hyder AliFaryal JoomaTahir MasaudKaifee Siddiqui (Secretary)

Re-Insurance &Co-Insurance Committee

(Chairman)

Syed Hyder Ali (Chairman)Tahir MasaudFaisal Khan (Secretary)

Board of DirectorsSyed Babar Ali (Chairman)Shamim Ahmad KhanSyed Yawar AliSyed Shahid AliSyed Hyder AliFaryal JoomaOsman Khalid WaheedTahir Masaud

ContactUAN: 111-308-308Toll Free No: 0800-2-3434FAX: 92-21-35301706

Internal AuditorsErnst & Young Ford RhodesSidat HyderChartered Accountants

Legal AdvisorsRamday Law AssociatesHassan & HassanLari & Company

Share RegistrarFAMCO Associates (Private)Limited8-F, Next to Hotel Faran,Nursery, Block-6, P.E.C.H.S.,Shahrah-e-Faisal, Karachi

Registered & Head Office7th Floor, The Forum,Suite Nos. 701-713,G-20, Block-9,Khayaban-e-Jami, Clifton,Karachi-75600, Pakistanwww.igiinsurance.com.pk

Directors’ report to the shareholders on unconsolidated condensedinterim financial information

For and on behalf of the Board

Syed Babar AliChairman

Lahore : August 25, 2016

The Directors of IGI Insurance take pleasure in presenting their review together with the unconsolidatedcondensed interim financial information (un-audited) for the half year ended June 30, 2016.

During the current period, your Company achieved growth in gross written premium of 25% postingRs 1,668 million as compared to Rs 1,330 million in the corresponding period of 2015. The netretained premium increased by 18% as compared to the corresponding period. Net claims for thesix months have increased by 7% as compared to the corresponding period of last year. Investmentincome during the six months amounted to Rs 784 million as compared to Rs 938 million in theprevious period.

The Company’s profit for the period and earnings per share amounts to Rs 485 million and Rs 3.95per share respectively for the six months as compared to Rs 796 million and Rs 6.49 per share forthe same period in 2015.

The main reason for decline in profitability as compared to last year is the fact that the Companyhad benefitted from a one off capital gain due to sale of shares of a listed company in the correspondingperiod of 2015. More importantly, the profitability of the Company has been adversely impacted byan increase in the tax rate on investment income from 12.5% to 31%; an insurance specific measureviewed by the industry as extremely regressive and affecting capital formation.

We cherish the support and patronage extended by our business partners and all stakeholders andappreciate the dedicated and sincere efforts of our employees.


Based on our review, nothing has come to our attention that causes us to believe that the accompanyingcondensed interim financial information as of and for the half year ended June 30, 2016 is not prepared, inall material respects, in accordance with approved accounting standards as applicable in Pakistan for interimfinancial reporting.

Conclusion

of IGI Insurance Limited (the Company) together with the notes forming part thereof as at and for the half yearended June 30, 2016 (here-in-after referred to as the "condensed interim financial information"). Managementis responsible for the preparation and presentation of this condensed interim financial information in accordancewith approved accounting standards as applicable in Pakistan for interim financial reporting. Our responsibilityis to express a conclusion on this condensed interim financial information based on our review. The figures ofthe condensed interim financial information for the quarters ended June 30, 2015 and June 30, 2016 have notbeen reviewed, as we are required to review only the cumulative figures for the half year ended June 30, 2016.

Introduction

i. unconsolidated condensed interim balance sheet;ii. unconsolidated condensed interim profit and loss account;iii. unconsolidated condensed interim statement of changes in equity;iv. unconsolidated condensed interim statement of cash flows;v. unconsolidated condensed interim statement of premiums;vi. unconsolidated condensed interim statement of claims;vii. unconsolidated condensed interim statement of expenses; andviii. unconsolidated condensed interim statement of investment income

We have reviewed the accompanying

We conducted our review in accordance with the International Standard on Review Engagements 2410, "Reviewof Interim Financial Information Performed by the Independent Auditor of the Entity." A review of interimfinancial information consists of making inquiries, primarily of persons responsible for financial and accountingmatters, and applying analytical and other review procedures. A review is substantially less in scope than anaudit conducted in accordance with International Standards on Auditing and consequently does not enableus to obtain assurance that we would become aware of all significant matters that might be identified in anaudit. Accordingly, we do not express an audit opinion.

Scope of Review

Chartered AccountantsEngagement Partner: Shahbaz Akbar

Karachi: August 26, 2016


Auditors' Report to the Members on Review of Interim FinancialInformation

UnconsolidatedCondensed Interim

Financial Informationfor the Half Year Ended

June 30, 2016

Share capital and reservesAuthorised share capital[200,000,000 (December 31, 2015: 200,000,000)Ordinary shares of Rs.10/- each]

Issued, subscribed and paid up share capitalUnappropriated profitReserves

Underwriting provisionsProvision for outstanding claims (including IBNR)Provision for unearned premiumCommission income unearned

Deferred LiabilitiesDeferred taxation

Creditors and accrualsPremium received in advanceAmounts due to other insurers / reinsurersAccrued expensesTaxation - provision less paymentsSundry creditors

BorrowingsShort term finances - securedLong term finances - secured

Other liabilitiesUnclaimed dividendLiabilities against assets subject to finance lease

TOTAL LIABILITIES

TOTAL EQUITY AND LIABILITIES

CONTINGENCIES AND COMMITMENTS

Unconsolidated Condensed Interim Balance Sheet

Principal Officerand Chief Executive

DirectorDirectorChairman


9

NoteUn-audited Audited

June 30, 2016 Dec. 31, 2015

(Rupees in thousand)

2,000,000

1,226,8953,661,2397,366,574

12,254,708

1,150,0631,156,899

126,0792,433,041

-

462587,489109,747177,948415,451

1,291,097

1,295,562750,000

2,045,562

16,83524,845

5,811,380

18,066,088

2,000,000

1,226,8952,931,1298,102,711

12,260,735

643,816745,483

75,4791,464,778

1,728

330309,170107,525

-344,361761,386

148,020-

148,020

13,979-

2,389,891

14,650,626

8

as at June 30, 2016 (Un-audited)

Cash and bank depositsCash and other equivalentsCurrent and other accountsDeposits maturing within 12 months

Investments

Investment property

Deferred Taxation

Current assets - othersPremiums due but unpaid - unsecuredAmounts due from other insurers / reinsurers - unsecuredAccrued income on investments and depositsReinsurance recoveries against outstanding claimsPrepayments: - prepaid reinsurance premium ceded - othersTaxation - payments less provisionSundry receivables

Fixed assets

TangibleFurniture, fixtures and office equipmentsBuildingsMotor vehiclesCapital work-in-progress

IntangiblesComputer software

TOTAL ASSETS

The annexed notes 1 to 22 form an integral part of this unconsolidated condensed interim financial information.





June 30, 2016 Dec. 31, 2015


10

13

51113,716

-113,767

15,010,724

184,760

100

600,202372,389

6,519823,574

553,24136,634

-122,716

2,515,275

45,565103,716

82,7498,211

240,241

1,221

18,066,088

9017,084

350,000367,174

12,325,078

190,569

-

278,831402,885

7,343391,659

333,74420,126

1,801110,673

1,547,062

47,881108,448

62,558-

218,887

1,856

14,650,626

12

11

Revenue accountNet premium revenueNet claimsManagement ExpensesNet commission

Underwriting result

Investment incomeRental incomeReturn on bank balancesOther incomeFinancial chargesGeneral and administrative expenses

Profit before taxationTaxationProfit after taxationOther comprehensive incomeTotal comprehensive income

Earnings per share - basic and diluted (Rupees) (note 18)

Balance of unappropriated profit at the commencement of the period

Revenue accountNet premium revenueNet claimsManagement ExpensesNet commission

Underwriting result


Profit before taxationTaxationProfit after taxationOther comprehensive incomeTotal comprehensive income

Profit after taxationTransferred from general reserveFinal dividend for the year ended December 31, 2015 at Rs. 4 per share (2014: Rs. 3 per share)

Balance of unappropriated profit at the end of the periodEarnings per share - basic and diluted (Rupees) (note 18)

733,325(270,319)

463,006-

463,006

334,863(196,887)(90,781)(2,025)45,170

33,833(12,565)(11,921)(4,830)

4,517

37,442(27,694)(7,696)

(676)1,376

189,278(91,149)(27,187)(17,091)53,851

53,615(13,777)(11,562)11,85540,131

20,695(51,702)(32,415)

8,717(54,705)

285,041(189,863)(93,783)17,19318,588

809,0585,543

(1,463)775

(32,360)(93,398)

1,040,551946

3,8752,826

(8,553)(52,914)

1,005,319(134,516)

870,803-

870,803

3.77 7.10

688,155 986,731

Marine,aviation and

TransportHealth MiscellaneousMotor

Fire andPropertyDamage

662,679(343,570)(175,295)

7,181150,995

72,129(40,132)(20,018)(4,779)7,200

66,867(47,647)(12,210)(2,306)

4,704

369,850(171,891)(58,499)(38,667)100,793

112,132(30,061)(22,492)25,03184,610

41,701(53,839)(62,076)27,902

(46,312)

561,352(321,474)(178,517)

42,895104,256

Marine,aviation and

TransportHealth MiscellaneousMotor

Fire andPropertyDamage

2,931,129

778,942(294,211)

484,731-

783,86410,4112,9403,660

(37,088)(135,840)

627,947

484,731

484,731736,137

(490,758)

3,661,239

3.95

1,881,471

951,535(155,588)

795,947-

938,4441,8939,4183,019

(23,952)(81,543)847,279

795,947

795,947368,069

(368,069)

2,677,418

6.49

730,110 795,947




Unconsolidated Condensed Interim Profit and Loss Account for the quarter and half year ended June 30, 2016 (Un-audited)

Quarter EndedJune 30, 2015June 30, 2016AggregateAggregate


Rupees in thousand

Half year endedJune 30, 2015June 30, 2016AggregateAggregate

Rupees in thousand





Unconsolidated Condensed Interim Statement of Changes in Equity for the half year ended June 30, 2016 (Un-audited)

Balance as at January 1, 2015 (audited)

Profit after taxation for the half year ended June 30, 2015

Other comprehensive income for the periodTotal comprehensive income for the half year ended June 30, 2015

Transfer from general reserve to unappropriated profit

Transactions with owners, recorded directly in equity

Final dividend for the year ended December 31, 2014 - Rs. 3 per share

Balance as at June 30, 2015 (unaudited)

Profit after taxation for the half year ended December 31, 2015

Other comprehensive income for the periodTotal comprehensive income for the half year ended December 31, 2015


Interim dividend for the year ended December 31, 2015 - Rs. 2 per share

Balance as at December 31, 2015 (audited)


Other comprehensive income for the periodTotal comprehensive income for the half year ended June 30, 2016



Final dividend for the year ended December 31, 2015 - Rs. 4 per share

Balance as at June 30, 2016 (unaudited)

Generalreserve

Unappro-priatedprofits

( R u p e e s i n t h o u s a n d )

ReservesIssued,

subscribedand paid-up sharecapital

Premiumon issueof shares

Othercapital

reserves

Capital reserves Revenuereserves

TotalReserve

for bonusshares

1,226,895

-

- -

-

-

1,226,895

-

- -

-

1,226,895

-

- -

-

-

1,226,895

35,762

-

--

-

-

35,762

-

--

-

35,762

-

--

-

-

35,762

-

-

--

-

-

-

-

--

-

-

-

--

-

-

-

33,267

-

--

-

-

33,267

-

--

-

33,267

-

--

-

-

33,267

8,401,751

-

--

(368,069)

-

8,033,682

-

--

-

8,033,682

-

--

(736,137)

-

7,297,545

1,881,471

795,947

-795,947

368,069

(368,069)

2,677,418

497,099

1,991499,090

(245,379)

2,931,129

484,731

-484,731

736,137

(490,758)

3,661,239

11,579,146

795,947

-795,947

-

(368,069)

12,007,024

497,099

1,991499,090

(245,379)

12,260,735

484,731

-484,731

-

(490,758)

12,254,708





Unconsolidated Condensed Interim Statement of Cash Flows

OPERATING ACTIVITIES

Premiums receivedReinsurance premiums paidClaims paidReinsurance and other recoveries receivedCommissions paidCommissions received

Underwriting activities

Income tax paidGeneral management expenses paidOperating payments - net

Other operating activities

Total cash generated from all operating activities

INVESTMENT ACTIVITIESProfit / return receivedDividends receivedPayments for investmentsProceeds from disposal of investmentsFixed capital expenditureProceeds from disposal of fixed assets

1,168,281(369,528)(501,313)

205,225(79,514)137,412560,563

(91,790)(223,763)

(2,198)(317,751)

38,201602,733

(129,200)499,155(39,414)

8,274

242,812

Net cash generated from underwriting activities

Net cash used in other operating activities

1,347,401(505,227)(386,236)

116,998(105,361)

184,426652,001

(116,290)(211,366)(46,532)

(374,188)

11,670783,928

(2,747,058)60,962

(24,637)11,363

277,813

Half Year endedUn-audited

June 30, 2016 June 30, 2015


a)

b)

Total cash (used in) / generated from investing activities

FINANCING ACTIVITIESDividends paidFinancial charges paidLoan received

Total cash generated from / (used in) financing activities

Net cash (outflow) / inflow from all activities

Cash at beginning of the period

Cash at the end of the period

(359,984)(43,291)

(675,000)

979,749

(1,078,275)

144,286

235,369

379,655

(487,902)(37,088)750,000

(1,903,772)

225,010

(1,400,949)

219,154

(1,181,795)




IGI INSURANCE HALF YEARLY REPORT JUNE-201611

Reconciliation to profit and loss account

Operating cash flows

Depreciation / amortisation

Financial charges

Gain on disposal of fixed assets

Increase in assets other than cash

Increase in liabilities

Return on bank balances

Dividend and other investment income

Profit after tax

242,812

(24,149)

(23,952)

2,981

89,117

(445,163)

9,418

944,883

795,947

277,813

(26,843)

(37,088)

3,443

994,173

(1,521,091)

2,940

791,384

484,731

Cash comprises of cash in hand and at banks, stamps in hand, short term placementswith banks and short term running finance

Definition of cash

for the half year ended June 30, 2016 (Un-audited)

Half Year endedUn-audited

June 30, 2016 June 30, 2015


Current and other accounts - Current accounts

- PLS accounts

Short term finances

Deposits maturing within 12 months

34,08384

34,167

345,000

84,13529,581

(1,295,562)(1,181,795)

-

113,716

Cash for the purpose of statement of cash flows consists of:

Cash and other equivalents - stamps in hand 48851

-379,655





Unconsolidated Condensed Interim Statement of Premiums for the quarter and half year ended June 30, 2016 (Un-audited)

Business underwritten inside Pakistan

Direct and facultative

Class

Prepaid reinsurancepremium ceded

Net Premium Revenue Premiums

written

Unearned premiumsreserve

Opening Closing

Premiumsearned

Reinsuranceceded

Opening Closing

Reinsuranceexpense

June 30, 2016 June 30, 2015


Fire and property damage

Marine, aviation and transport

Motor

Health

Miscellaneous

Total

646,929

234,405

474,269

104,419

208,618

1,668,640

276,743

24,623

286,815

50,038

107,264

745,483

499,293

30,194

388,966

87,590

150,856

1,156,899

424,379

228,834

372,118

66,867

165,026

1,257,224

581,947

119,052

4,558

-

108,485

814,042

250,309

13,215

179

-

70,041

333,744

449,578

15,565

2,469

-

85,629

553,241

382,678

116,702

2,268

-

92,897

594,545

41,701

112,132

369,850

66,867

72,129

662,679

49,394

102,651

299,455

51,375

58,477

561,352

Half year ended

-------------------------------------- For the quarter ended June 30, 2016 --------------------------------------


Class

Prepaid reinsurancepremium ceded

Net Premium Revenue Premiums

written


Opening Closing

Premiumsearned

Reinsuranceceded

Opening Closing

Reinsuranceexpense

June 30, 2016 June 30, 2015




Motor

Health

Miscellaneous

Total

281,396

99,703

181,710

65,769

108,828

737,406

435,246

37,726

397,673

59,263

120,866

1,050,774

499,293

30,194

388,966

87,590

150,856

1,156,899

217,349

107,235

190,417

37,442

78,838

631,281

254,005

49,443

-

-

52,910

356,358

392,227

19,742

3,608

-

77,724

493,301

449,578

15,565

2,469

-

85,629

553,241

196,654

53,620

1,139

-

45,005

296,418

20,695

53,615

189,278

37,442

33,833

334,863

23,663

47,699

154,516

26,540

32,623

285,041

Quarter ended

-------------------------------------- For the half year ended June 30, 2016 --------------------------------------





Unconsolidated Condensed Interim Statement of Claims for the quarter and half year ended June 30, 2016 (Un-audited)


Net claims expense

June 30, 2016 June 30, 2015

Half year endedClass



Claimspaid Outstanding claims

Opening Closing

Claimsexpense

Reinsuranceand otherrecoveriesreceived

Opening Closing

Reinsuranceand otherrecoveriesrevenue

Reinsurance andother recoveriesin respect of out-standing claims



Motor

Health

Miscellaneous

Total

69,259

61,829

154,466

48,643

52,039

386,236

217,148

135,313

120,843

34,706

135,806

643,816

489,509

134,592

138,326

33,710

353,926

1,150,063

341,620

61,108

171,949

47,647

270,159

892,483

51,101

44,788

58

-

21,051

116,998

184,148

80,498

14,687

-

112,326

391,659

420,828

66,757

14,687

-

321,302

823,574

287,781

31,047

58

-

230,027

548,913

53,839

30,061

171,891

47,647

40,132

343,570

55,461

42,018

155,245

41,814

26,936

321,474



Net claims expense

June 30, 2016 June 30, 2015

Quarter endedClass



Claimspaid Outstanding claims

Opening Closing

Claimsexpense

Reinsuranceand otherrecoveriesreceived

Opening Closing

Reinsuranceand otherrecoveriesrevenue

Reinsurance andother recoveriesin respect of out-standing claims



Motor

Health

Miscellaneous

Total

52,815

32,011

71,666

25,427

25,093

207,012

220,849

142,149

118,826

31,443

187,857

701,124

489,509

134,592

138,326

33,710

353,926

1,150,063

321,475

24,454

91,166

27,694

191,162

655,951

38,649

18,600

58

-

18,415

75,722

189,704

74,680

14,728

-

161,120

440,232

420,828

66,757

14,687

-

321,302

823,574

269,773

10,677

17

-

178,597

459,064

51,702

13,777

91,149

27,694

12,565

196,887

52,242

25,019

83,657

19,844

9,101

189,863




Unconsolidated Condensed Interim Statement of Expenses for the quarter and half year ended June 30, 2016 (Un-audited)


* Commissions from reinsurers is arrived after taking impact of opening and closing unearned commission.




Net underwriting expense

June 30, 2016 June 30, 2015

Quarter ended

(Rupees in thousand)Class


Commissionspaid or

payable

Deferredcommission

Opening Closing

Netcommission

expenses

Othermanagement

expenses Underwriting

expense

*Commissionsfrom

reinsurers



Motor

Health

Miscellaneous

Total

-

-

-

-

-

-

-

-

-

-

-

-

30,388

10,607

17,091

676

13,145

71,907

62,803

22,169

44,278

8,372

25,066

162,688

32,415

11,562

27,187

7,696

11,921

90,781

4,227

2,666

52,275

1,933

15,489

76,590

23,698

(293)

44,278

8,372

16,751

92,806

39,105

22,462

-

-

8,315

69,882

30,388

10,607

17,091

676

13,145

71,907

Net underwriting expense

June 30, 2016 June 30, 2015

Half year ended

(Rupees in thousand)Class


Commissionspaid or

payable

Deferredcommission

Opening Closing

Netcommission

expenses

Othermanagement

expenses Underwriting

expense

*Commissionsfrom

reinsurers



Motor

Health

Miscellaneous

Total

-

-

-

-

-

-

-

-

-

-

-

-

44,160

19,545

38,675

2,306

21,959

126,645

106,236

42,037

97,174

14,516

41,977

301,940

62,076

22,492

58,499

12,210

20,018

175,295

8,187

3,116

95,968

8,068

20,283

135,622

34,174

(2,539)

97,166

14,516

24,797

168,114

72,062

44,576

8

-

17,180

133,826

44,160

19,545

38,675

2,306

21,959

126,645





Unconsolidated Condensed Interim Statement of Investment Income for the quarter and half year ended June 30, 2016 (Un-audited)

Income from non-trading investments

Held to maturity

Return on government securities

Dividend income on available for sale investments

Dividend income on investment in associates

(Provision) / reversal of provision for diminutionin value of investments

Gain on sale of available for sale investments

Less: Investment related expenses

Net investment income

Half year ended

June 30, 2016 June 30, 2015

7,902

412,535

190,198

(61,513)

395,761

(6,439)

938,444

7,906

453,356

330,572

(11,412)

10,962

(7,520)

783,864

Quarter Ended

June 30, 2016 June 30, 2015


3,956

409,537

190,198

45,908

395,761

(4,809)

1,040,551

3,954

444,698

330,572

22,618

10,962

(3,746)

809,058

Note

14

15

14


Notes to and forming part of the Unconsolidated Condensed Interim Financial Information (un-audited)

This unconsolidated condensed interim financial information has been prepared in accordance with the requirementsof the International Accounting Standard 34 - 'Interim Financial Reporting', provisions of the Companies Ordinance,1984, the Insurance Ordinance, 2000, the SEC (Insurance) Rules, 2002 and directives issued by the Securities andExchange Commission of Pakistan (SECP). In case where the requirements differ, the provisions of the CompaniesOrdinance 1984, the Insurance Ordinance, 2000, the SEC (Insurance) Rules, 2002 and the said directives prevail.

STATEMENT OF COMPLIANCE2.

This unconsolidated condensed interim financial information is un-audited and is being submitted to the shareholdersin accordance with the listing regulations of Pakistan Stock Exchange and section 245 of the Companies Ordinance,1984. This unconsolidated condensed interim financial information of the Company has been prepared in accordancewith the approved accounting standards as applicable in Pakistan for interim financial reporting.

This unconsolidated condensed interim financial information does not include all the information and disclosures requiredin the annual financial statements, and should be read in conjunction with the Company's annual financial statements forthe year ended December 31, 2015.

This unconsolidated condensed interim financial information is the separate financial information of the Company in whichinvestment in subsidiary is carried at cost and is not consolidated. The consolidated condensed interim financial informationis being issued separately.

BASIS OF PRESENTATION3.

The accounting policies and methods of computation adopted in the preparation of this unconsolidated condensedinterim financial information are the same as those applied in the preparation of the annual financial statements for theyear ended December 31, 2015.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES4.

IGI Insurance Limited ("the Company"), a Packages Group Company, was incorporated as a public limited company in1953 under Companies Ordinance, 1984 and is quoted on the Pakistan Stock Exchange Limited (formerly Karachi StockExchange Limited) and is engaged in providing general insurance services in spheres of Fire, Marine, Motor, Health andMiscellaneous. The registered office of the Company is situated at 7th floor, The Forum, Suite No. 701-713, G-20, Block9, Khayaban-e-Jami, Clifton, Karachi.

During the preceding year, the Board of Directors of the Company passed a resolution to commence Window TakafulOperations under the provisions of Takaful Rules, 2012. In this regard, during the period, the Company held an ExtraOrdinary General Meeting (EOGM) in which the shareholders have approved amendment in Memorandum of Associationof the Company and the same amendment has been approved by Securities and Exchange Commission of Pakistan. TheCompany intends to complete other legal formalities in this respect in the second half of year ending December 31, 2016.

STATUS AND NATURE OF BUSINESS1.

The preparation of the unconsolidated condensed interim financial information requires management to make judgments,estimates and assumptions that affect the application of accounting policies and the reported amounts of assets andliabilities, income and expenses. Actual results may differ from these estimates.

In preparing this unconsolidated condensed interim financial information, the significant judgments made by managementin applying the Company's accounting policies and the key sources of estimating uncertainty were the same as thoseapplied to the annual financial statements for the year ended December 31, 2015.

SIGNIFICANT ESTIMATES AND JUDGEMENT5.

The financial and insurance risk management objectives and policies are consistent with those disclosed in the annualfinancial statements of the Company for the year ended December 31, 2015.

FINANCIAL AND INSURANCE RISK MANAGEMENT6.


for the quarter and half year ended June 30, 2016

There is no material change in the status of contingencies as disclosed in the annual financial statements of the Companyfor the year ended December 31, 2015 except for the following;

CONTINGENCIES - TAXATION9.

In case of tax year 2010, the Additional Commissioner Inland Revenue (ACIR) passed an amended assessment orderunder section 122(5A) of the Income Tax Ordinance, 2001 (the Ordinance) wherein tax on dividend and propertyincome was charged at corporate tax rate by treating such income as business income of the Company under FourthSchedule to the Ordinance. Further, the ACIR had disallowed provision of IBNR under section 34(3) of the Ordinance.As a result of the amended assessment demand of Rs. 93.445 million was created. The Company filed appeal andapplication for stay of tax demand before the CIR(A) against the above assessment order. The Company also filed apetition against the said order before the Honorable Sindh High Court which was referred back by the HonorableSindh High Court to the CIR(A). Pursuant to appeal, the learned CIR(A) vide combined appellate dated March 10,2016 decided all issues in favor of the Company. The tax department has filed further appeal before the AppellateTribunal Inland Revenue (ATIR) in respect of the issues on which relief was allowed by the CIR(A).

-

In case of tax year 2011, the Additional Commissioner Inland Revenue (ACIR) passed an amended assessment orderunder section 122(5A) of the Ordinance wherein tax on dividend and property income was charged at corporatetax rate by treating such income as business income of the company under Fourth Schedule to the Ordinance.Further, the ACIR had also disallowed provision of IBNR, claim of brought forward loss for the tax year 2008 andWorkers’ Welfare Fund @ 2% of the accounting profit for the year had also been levied. Moreover, the ACIR hadalso disallowed refund adjustments for tax years 2004 and 2009 in the amended assessment order. As a result ofthe amended assessment demand of Rs.142.414 million was created. The Company filed appeal and applicationfor stay of tax demand before the CIR(A) against the above assessment order. The Company also filed a petitionagainst the said order before the Honorable Sindh High Court which was referred back by the Honorable Sindh HighCourt to the CIR(A). Pursuant to appeal, the learned CIR(A) vide combined appellate dated March 10, 2016 decidedissues pertaining to chargeability of tax on dividend and property income, provision of IBNR and levy of Workers'Welfare Fund in favor of the Company. As regards, credit / adjustment of refunds available to the Company, theCIR(A) has remanded back the issue with the directions to verify the claim of refunds and allow the adjustment asper law. The tax department has filed further appeal before the Appellate Tribunal Inland Revenue (ATIR) in respectof the issues on which relief was allowed by the CIR(A).

-

In case of tax year 2012, subsequent to period end, the Additional Commissioner Inland Revenue (ACIR) has passedan amended assessment order under section 122(5A) of the Income Tax Ordinance, 2001 (the Ordinance) whereintax on dividend and property income was charged at corporate tax rate (i.e. 35% for the year) by treating suchincome as business income of the Company under Fourth Schedule to the Ordinance. Further, the ACIR had disallowedprovision of IBNR under section 34(3) of the Ordinance. As a result of the amended assessment demand of Rs.106.562million has been created. The Company is in process of filing an appeal and application for stay of tax demandbefore the CIR(A) against the above assessment order.

-

There is no material movement in the amount of premium deficiency reserve recognised as at December 31, 2015.

PREMIUM DEFICIENCY RESERVE7.

BORROWINGS8.

The Company obtained a long term finance facility amounting to Rs. 1,000 million during 2015 for the purpose of equityinvestment in Packages Construction Limited, out of which Rs. 750 million was availed during the half year ended June30, 2016. The rate of mark-up on this facility is 6.72% per annum (2015: Nil). Principal repayment is to be made in 6equal semi-annual installments and will be due after 30th month of the drawdown date. The first disbursement was onMay 26, 2016. This facility is secured against pledge of shares held by the Company.

8.2

Short term credit facilities available from various commercial banks under mark-up arrangements amounting to Rs. 3,550million (2015: Rs. 2,250 million). The rates of mark-up on these facilities range from 6.22% to 7.92% per annum (2015:6.70% to 7.85% per annum) and are payable latest by July 15, 2016. These facilities are secured against pledge of sharesheld by the Company.

8.1

In case of tax year 2013, the Additional Commissioner Inland Revenue (ACIR) has passed an amended assessmentorder under section 122(5A) of the Income Tax Ordinance, 2001 (the Ordinance) wherein tax on dividend andproperty income was charged at corporate tax rate (i.e. 35% for the year) by treating such income as business incomeof the Company under Fourth Schedule to the Ordinance. Further, the ACIR has also disallowed provision of IBNR,claim of brought forward loss for the tax year 2012 and has also made an addition on account of disposal of fixedassets at less than Fair Market Value (FMV) in the amended assessment order. As a result of the amended assessment,demand of Rs. 95.008 million was created. The Company has obtained stay order from the Honorable Sindh HighCourt in respect of the above tax demand. Further, against the aforesaid order, the Company has filed an appealbefore CIR(A) which is pending adjudication.

-



Market value of investments as at June 30, 2016 is Rs. 53,191 million (December 31, 2015: Rs. 54,774 million).11.1

INVESTMENTS11.

Investment in Subsidiary - IGI Life Insurance Company Limited

Investment in associate- Quoted- Unquoted

Held to maturity- Government securities

Available for sale- Quoted- Unquoted

The investments comprise of the following:

11.1

11.1 & 11.2

11.1

11.1 & 11.2

858,831

5,541,706750,000

6,291,706

124,806

7,619,619115,762

7,735,381

15,010,724

858,831

3,873,031 -

3,873,031

124,558

7,352,894115,764

7,468,658

12,325,078


June 30, 2016 Dec. 31, 2015


The management and tax advisor of the Company are confident that the above matters will be decided in the Company'sfavor. Accordingly, no provision has been recognised in this unconsolidated condensed interim financial information.

This includes Rs. 50 million (December 31, 2015: Nil) placed with a shariah compliant financial institution.

CURRENT AND OTHER ACCOUNTS10.

These include investments amounting to Rs. 11,920 million (December 31, 2015: Rs. 10,222 million) in shares oflisted companies appearing on the All Share Islamic index.

11.2

In case of tax year 2015, the Assistant Commissioner Inland Revenue (ACIR) has passed an order under section 221of the Ordinance charging Super tax under section 4B amounting to Rs. 27.913 million. The Company has writtena letter to ACIR to adjust the aforesaid demand against the refunds for the tax years 2008 and 2012 amounting toRs. 18.030 million and Rs. 13.400 million respectively, however no adjustment has been made to-date. Further, theCompany filed an application with the ACIR requesting to annul the order based on various legal grounds, however,no order has yet been passed in this regard. Moreover, the Company has also filed an appeal before the CIR(A) inrespect of the order passed under section 221 of the Ordinance, which is pending adjudication.

-

Advances - considered goodSecurity deposits(Payable to) / Receivable from defined benefit planAgent balancesSales tax receivableSalvage recoverableOthers

SUNDRY RECEIVABLES12.

Un-audited AuditedJune 30, 2016 Dec. 31, 2015


4,68838,641

378461

18,3577,900

40,248110,673

16,16520,561(5,907)

13117,61425,60048,552

122,716



SubsidiaryIGI Life Insurance Limited

AssociatePackages Limited

Quoted SharesNestle Pakistan LimitedTri - Pack Films LimitedSanofi Aventis Pakistan LimitedSystems LimitedInternational Industries LimitedSiemens Pakistan Engineering Company LimitedMitchell's Fruit Farms Limited

Unquoted SharesTechlogix International LimitedOthers

DIVIDEND INCOME14.

Un-audited Un-audited

June 30, 2016 June 30, 2015


Opening book valueAdd: Additions during the period / year

Less :Net book value of assets disposed of / transferred during the period / yearDepreciation for the period / year

Capital work in progress

FIXED ASSETS - Tangible13.

235,85671,784

307,640

50,10038,65388,753

218,887 -

218,887

218,88742,327

261,214

7,91921,26529,184

232,0308,211

240,241

-

190,198

392,820-

12,8923,825

688700

1,464

-146

602,733

40,987

330,572

392,8206,7675,5255,235

459700731

132-

783,928

This includes realised gain of Rs. 10.96 million earned on sale of securities appearing under conventional mode.

GAIN ON SALE OF AVAILABLE FOR SALE INVESTMENTS15.

Half year ended

Subsidiary Other relatedparties

Post employmentbenefit plans

Key managementpersonnel

(including directors)Associate



Related parties comprise of subsidiary, related group companies, directors of the Company, key management personnel,major shareholders, post employment benefit plans and other related parties. The Company in the normal course ofbusiness carries out transactions with various related parties at agreed / commercial terms and conditions. Amounts dueto / from and other significant transactions, other than those disclosed else where in this condensed interim financialinformation, are as follows:

TRANSACTIONS WITH RELATED PARTIES16.

Premium UnderwrittenPremium CollectedClaims ExpenseCommission ExpenseCommission PaidRental IncomeFixed Assets DisposedDividend ReceivedDividend PaidKey Management Personnel CompensationInvestment / (Disinvestment) in Shares - Net of Provision for ImpairmentBrokerage CommissionCharge in respect of Gratuity FundCharge in respect of Provident FundContribution to Gratuity FundContribution to Provident FundCharge for Administrative ServicesMedical Insurance Premium Paid

Transactions

June 30, 2016 June 30, 2015(Rupees in thousand)

Subsidiary

2,7272,116

287 - -

8,264 -

40,987 - -

- - -

- 2,190

2,930

1,6771,107

180 - - -

89 - - -

128,985 - - - - -4,0003,376

139,252239,23246,82710,7698,3471,716

-6,767

--

299,625 - - - - -- -

Other relatedparties

144,278252,28811,24710,4895,9981,716

23---

-2,907------


Premium ReceivableCommission PayableInvestment in SharesOther Receivable(Payable to)/ Receivable from Gratuity Fund(Payable to)/ Receivable from Provident Fund

Balances

1,387

-

858,831

10,084

-

-

585

-

858,831

2,685

-

-

28,945

2,779

6,291,706

24,155

-

-

14,144

1,107

3,873,031

23,296

-

-

-

-

-

-

(5,907)

(1,939)

-

-

-

-

378

(1,167)

650

-

-

-

-

-

189

-

-

-

-

-

22,524

8,087

564,610

9,355

-

-

23,638

4,106

264,985

6,045

-

-

62,85576,65428,8253,9042,232

177615

330,57252,088

-

2,418,6748,443

------



(including directors)Associate

- - - - - - - - - -

- -

10,2425,2513,9574,473

- -

- - - - - - - - - -

- -

3,8144,7053,5951,176

- -

4983876

- - - - -

155,51449,397

- - - - - - - -

508875111

- - -

2,618 -

107,28227,344

- - - - - - - -

63,72886,1141,8254,0713,329

177-

190,19839,066

-

(60,531)-------




June 30, 2016 Dec. 31, 2015(Rupees in thousand)





as at

for the half year ended



There is no change in the basis of segmentation or the measurement basis of segment profit or loss since December 31,2015. Class of business wise revenue and results have been disclosed in the unconsolidated condensed interim statementof premiums and profit and loss account, respectively, prepared in accordance with the requirement of Insurance Ordinance,2000 and the SEC (Insurance) Rules, 2002.

SEGMENT REPORTING17.

Segment wise assets as at June 30, 2016 are as follows:


Segmentliabilities

1,386,732279,786746,438169,549676,667

-3,259,172

Unallocatedliabilities

-----

2,552,2082,552,208

1,386,732279,786746,438169,549676,667

2,552,2085,811,380

Totalliabilities

Fire and property damageMarine, aviation and transportMotorHealthMiscellaneousUnallocatedTotal

Segmentliabilities

717,413244,327548,770108,567438,217

-2,057,294

Unallocatedliabilities

-----

332,597332,597

717,413244,327548,770108,567438,217332,597

2,389,891

Totalliabilities

Dec. 31, 2015Un-auditedJune 30, 2016

Audited

Segment wise financial performance for the half year ended June 30, 2016 has been detailed in the unconsolidatedcondensed interim profit and loss account.

17.1

Dec. 31, 2015

Segmentassets

1,282,020231,464318,913

66,437539,666

-2,438,500

Unallocatedassets

- - - - -

15,627,58815,627,588

1,282,020231,464318,913

66,437539,666

15,627,58818,066,088

Totalassets

Fire and property damageMarine, aviation and transportMotorHealthMiscellaneousUnallocatedTotal

Segmentassets

702,645219,711239,840

37,983286,068

-1,486,247

Unallocatedassets

-----

13,164,37913,164,379

702,645219,711239,840

37,983286,068

13,164,37914,650,626

Totalassets

Un-auditedJune 30, 2016


Audited


DATE OF AUTHORISATION FOR ISSUE21.

This unconsolidated condensed interim financial information was authorised for issue by the Board of Directors ofthe Company on August 25, 2016.

GENERAL22.

Figures in this unconsolidated condensed interim financial information have been rounded off to the nearest thousandof rupees.




CORRESPONDING FIGURES20.

Corresponding figures have been rearranged and reclassified, wherever necessary, for the purpose of comparison.There have been no significant reclassifications in this unconsolidated condensed interim financial information.

FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES19.

The table below analyses financial instruments carried at fair value. The different levels have been defined as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, eitherdirectly (i.e., as prices) or indirectly (i.e., derived from prices). The Company has no items to report in this level.

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). The Companyhas no items to report in this level.

-

-

-

The carrying amounts of all other financial assets and liabilities reflected in the financial statements approximate theirfair values. In case of available for sale investments, the equity securities are carried at lower of cost or market valuein line with the requirements of the S.R.O. 938 issued by the Securities and Exchange Commission of Pakistan.

EARNINGS PER SHARE18.

Basic / diluted earnings per share

Profit for the period

Earnings per share 3.77

Weighted average number of ordinary shares

463,006

122,689,532

7.10

870,803

122,689,532

Quarter Ended

June 30, 2016 June 30, 2015

Un-audited

(Rupees)

3.95

484,731

122,689,532

6.49

795,947

122,689,532

Half Year Ended

June 30, 2016 June 30, 2015


Un-audited

(Number of Shares)

Directors’ report to the shareholders on consolidated condensedinterim financial information

For and on behalf of the Board

Syed Babar AliChairman

Lahore : August 25, 2016

I am pleased to present the consolidated condensed interim financial information (un-audited) ofIGI Insurance Limited and its subsidiary, IGI Life Insurance Limited for the half year ended June 30,2016.

The consolidated condensed interim financial information reflects Rs. 7.06 (June 30, 2015: Rs.9.40)earnings per share for the period under review.

We cherish the support and patronage of our business partners and all stakeholders and appreciatethe dedicated and sincere efforts of our employees.


ConsolidatedCondensed Interim

Financial Informationfor the Half Year Ended

June 30, 2016

Consolidated Condensed Interim Balance Sheet


June 30, 2016 Dec. 31, 2015

(Rupees in thousand)Share capital and reserves

Authorized share capital[200,000,000 (December 31, 2015: 200,000,000)

Ordinary shares of Rs.10/- each]

Issued, subscribed and paid up share capitalUnappropriated profit ReservesEquity attributable to the equity holders of the parent

Non-controlling interest

TOTAL EQUITY

2,000,000

1,226,8953,889,9868,102,711

13,219,592

255,766

13,475,358

Balance of statutory funds 11,504,253

2,000,000

1,226,8955,020,1947,366,574

13,613,663

252,154

13,865,817

13,755,085




Creditors and accrualsPremium received in advanceAmounts due to other insurers / reinsurersExperience refund payableAccrued expensesSundry creditors

69,846348,028

39,576219,015565,263

1,241,728

182,152667,048

49,915181,859679,729

1,760,703

Other liabilitiesUnclaimed dividendLiabilies against assets subject to finance lease

TOTAL LIABILITIES

14,006-

148,020-

148,020

TOTAL EQUITY AND LIABILITIES

CONTINGENCIES AND COMMITMENTS 9

28,314,50234,586,124

17,11028,344

1,295,562750,000

2,045,562

20,720,307 14,839,144

Deferred liabilitiesDeferred taxation 251,328469,134

Underwriting provisions

Provision for outstanding claims [including IBNR]Provision for unearned premiumCommission income unearned

858,847745,483

75,4791,679,809

1,361,3911,156,899

126,0792,644,369

BorrowingsShort term finance - securedLong term finance - secured

10

11

1,038889,761

-890,799

152,338

29,578,803

184,760

706,081372,389470,456823,574

553,24171,79479,80513,062

224,1733,314,575

72,089114,619112,04521,007

319,760

-679679

Premiums due but unpaidAmounts due from other insurers / reinsurers - unsecuredAccrued income on investments and depositsReinsurance recoveries against outstanding claimsPrepayments: - prepaid reinsurance premium ceded - othersTaxation - payments less provisionExperience refund receivableSundry receivables

Cash and bank depositsCash and other equivalentsCurrent and other accountsDeposits maturing within 12 months

Investments

Investment property

Current assets - others

Fixed assets

TangibleFurniture, fixtures and office equipmentBuildingMotor vehiclesCapital work in progress

Intangibles

TOTAL ASSETS

Loans secured against other assets- To employees

- To agents

Loans secured against life insurance policies

584449,792350,000800,376

146,947

24,328,125

190,569

397,319422,023421,599391,659

333,74442,086

210,6689,029

176,6392,404,766

74,058120,252

89,1367,938

291,384

-734734



June 30, 2016 Dec. 31, 2015


The annexed notes 1 to 17 form an integral part of this condensed interim consolidated financial information.




144,410 151,601

34,586,124 28,314,502





Consolidated Condensed Interim Profit and Loss Account for the quarter and half year ended June 30, 2016 (Un-audited)

33,830(12,565)(11,921)(4,830)

--

-

--

4,514

37,442(27,694)

(6,884)(676)--

-

--

2,188

189,278(90,954)(27,187)(17,091)

--

-

--

54,046

53,611(13,777)(11,562)

11,855--

-

--

40,127

20,695(51,652)(32,415)

8,717--

-

--

(54,655)

12,990(22,444)

(436)(1,363)45,281

1,979

1,158,343

(1,168,015)(26,335)

-

1,577,461(806,288)(200,074)(221,457)

374,42715,128

9,609,726

(10,243,802)(32,362)

72,759

2,763(66,196)

--

2,630147

103,996

(43,179)-161

2,528,968(1,118,190)

(180,538)(216,363)

392,09115,620

11,893,816

(13,234,882)(26,335)

54,187

1,640,619(497,108)

(28,982)(102,400)

184,1441,120

5,436,709

(6,677,303)-

(43,201)

238,354(164,940)

(14,244)(38,280)138,583

5,451

4,728,280

(4,845,393)-

47,811

30,245(26,281)(10,334)

7878,191

107

90,729

(83,942)-

9,502

1,240(2,593)(1,477)(4,094)

1,399153

13,368

(11,433)-

(3,437)

130,909(138,502)

(23,011)(12,171)

9,3936,465

304,438

(275,417)-2,104

468,6811,073(652)

768(32,360)(98,536)338,974501,100

464,9713,461

894,261(432,693)

461,568

3.76

6,864

468,432

866,992946

4,3502,826

(8,553)(55,743)810,818

1,032,1604,661

1,173,868(133,729)

1,040,139

8.48

290,291

(3,320)

1,036,819

134,986(3,481)

(12,085)(56,457)

2,470198

55,308

(125,508)-

(4,569)

178--

(31)--

428

(600)-

(25)

1,828(3)

-(329)--

2,217

(4,092)-

(379)

Revenue accountNet premium revenueNet claimsExpensesNet commissionNet investment income - statutory fundOther income-netAdd: Policyholders' liabilities at the beginning of the periodLess: Policyholders' liabilities at the end of the periodSurplus of policyholder fundsUnderwriting result


TaxationProfit after taxation

Share of profit of associate

Equity holders of the parentNon-controlling interest


Other comprehensive income - not reclassifiable to profit and loss - Share of other comprehensive income of associate

Total comprehensive income

Profit attributable to:

Profit before taxation

(Rupees)

Marine,aviation

andtransport

Health MiscellaneousMotor Fire andpropertydamage

Lifeparticipating

Pensionbusiness

fund

Quarter ended

Aggregate Aggregate

Life non-participatingInvestment

linkedbusinessIndividual Group

Accident and health business

Individual Group

NON-LIFE INSURANCE LIFE INSURANCE

Takaful window

Individualfamily

Groupfamily

Grouphealth

Restated(Rupees in thousand)

June 30, 2016 June 30, 2015

71,640(40,132)(20,018)

(4,779)--

-

--

6,711

66,867(47,647)(10,020)

(2,306)----

--

6,894

367,703(171,604)

(58,499)(38,667)

--

-

--

98,933

112,126(30,061)(22,492)

25,031--

-

--

84,604

41,616(53,789)(62,076)

27,902--

-

--

(46,347)

25,766(38,539)

(1,376)(1,767)85,022

4,131

1,140,823

(1,168,015)(46,045)

-

2,501,502(1,728,511)

(381,267)(290,874)

672,77329,890

9,594,542

(10,243,802)(35,085)119,169

4,621(66,196)

--

5,167340

99,599

(43,179)-352

4,316,830(1,973,891)

(376,519)(314,252)

728,41229,945

11,030,095

(13,234,882)(46,045)159,693

2,520,331(939,073)

(66,050)(154,561)

348,1553,735

4,878,865

(6,677,303)-

(85,901)

421,740(276,557)

(45,746)(63,454)257,189

9,593

4,623,900

(4,845,393)-

81,272

91,613(54,069)(19,445)

(286)13,426

166

69,789

(83,942)-

17,252

2,490(4,766)(5,091)(6,548)

2,296334

16,027

(11,433)-

(6,691)

395,620(246,760)

(43,273)(15,705)

14,16611,413

176,391

(275,417)-

16,435

488,9212,1474,6413,660

(37,088)(145,848)

316,433917,494

884,8295,401

1,393,620(527,504)

866,116

7.06

24,114

890,230

852,2011,893

11,1613,019

(23,952)(91,275)753,047483,033

1,140,6287,886

1,355,249(202,578)

1,152,671

9.4

(4,157)

1,148,514

191,561(4,428)

(22,433)(78,680)

2,991233

22,772

(125,508)-

(13,492)

389(50)-

(41)--

278

(600)-

(24)

2,747(220)-

(391)--

1,651

(4,092)-

(305)

Revenue accountNet premium revenueNet claimsExpensesNet commissionNet investment income - statutory fundOther income-netAdd: Policyholders' liabilities at the beginning of the periodLess: Policyholders' liabilities at the end of the periodSurplus of policyholder fundsUnderwriting result


TaxationProfit after taxation

Share of profit of associate

Equity holders of the parentNon-controlling interest


Other comprehensive income - not reclassifiable to profit and loss - Share of other comprehensive income of associate

Total comprehensive income

Total comprehensive income attributable to:

Profit before taxation

(Rupees)

Marine,aviation

andtransport

Health MiscellaneousMotor Fire andpropertydamage

Lifeparticipating

Pensionbusiness

fund

Half year ended

Aggregate Aggregate

Life non-participatingInvestment

linkedbusinessIndividual Group

Accident and health business

Individual Group

NON-LIFE INSURANCE LIFE INSURANCE

Takaful window

Individualfamily

Groupfamily

Grouphealth

Restated(Rupees in thousand)

June 30, 2016 June 30, 2015

Balance as at January 01, 2015 (audited)


Transactions with owners, recorded directly in equityFurther acquisition of shares of IGI Life Insurance LimitedFinal dividend for the year ended December 31, 2014 - Rs. 3 per share

Profit after taxation for the half year ended June 30, 2015 (restated)

Other comprehensive income for the period- Share of other comprehensive income of associate - net of taxTotal comprehensive income for the half year ended June 30, 2015 (restated)

Balance as at June 30, 2015 (restated)

Profit after taxation for the half year ended December 31, 2014 (restated)

Other comprehensive income - recalssifiable to profit and loss- Share of other comprehensive income of associate - net of tax

Other comprehensive income - not recalssifiable to profit and loss- Share of other comprehensive income of associate - net of tax- Remeasurement of post employment benefit obligations - net of tax

Total comprehensive income for the half year ended December 31, 2015 (restated)

Transactions with owners, recorded directly in equityInterim dividend for the year ended December 31, 2015 - Rs. 2 per share

Balance as at December 31, 2015 (audited)

Transactions with owners, recorded directly in equityFinal dividend for the year ended December 31, 2015 - Re. 4 per share


Other comprehensive loss for the periodTotal comprehensive income for the half year ended June 30, 2016

Dividend by subsidiary company attributable to non-controlling interest



Capital contribution from statutory fund during the period

Balance as at June 30, 2016


12,324,280

-

(128,985)(368,069)

1,152,671

(4,157)1,148,514

12,975,740

822,623

(67,901)

(11,716)1,991

(9,725)744,997

(245,379)

13,475,358

(490,758)

866,116

24,114890,230

(9,013)

-

-

-

13,865,817

Reserves

Issued,subscribed

and paid-up share capital

Premiumon issueof shares

Othercapital

reserves Generalreserve

Unapprop-riatedProfits

Capital reserves Revenuereserves

Total

Reservefor bonus

shares

Equityattributable

to equityholders

of the parent

Non-controlling

interest

1,226,895

-

- -

-

- -

1,226,895

-

-

- - - -

-

1,226,895

-

-

- -

-

-

-

-

1,226,895

35,762

-

- -

-

- -

35,762

-

-

- - - -

-

35,762

-

-

- -

-

-

-

-

35,762

-

-

- -

-

- -

-

-

-

- - - -

-

-

-

-

- -

-

-

-

-

-

33,267

-

- -

-

- -

33,267

-

-

- - - -

-

33,267

-

-

- -

-

-

-

-

33,267

8,401,751

(368,069)

- -

-

- -

8,033,682

-

-

- - - -

-

8,033,682

-

-

- -

-

(245,379)

(490,758)

-

7,297,545

2,220,320

368,069

40,119(368,069)

1,144,785

(4,157)1,140,628

3,401,067

811,924

(67,901)

(11,716)1,991

(9,725)734,298

(245,379)

3,889,986

(490,758)

860,715

24,114884,829

-

245,379

490,758

-

5,020,194

11,917,995

-

40,119(368,069)

1,144,785

(4,157)1,140,628

12,730,673

811,924

(67,901)

(11,716)1,991

(9,725)734,298

(245,379)

13,219,592

(490,758)

860,715

24,114884,829

-

-

-

-

13,613,663

406,285

-

(169,104) -

7,886

-7,886

245,067

10,699

-

- - -

10,699

-

255,766

-

5,401

-5,401

(9,013)

-

-

-

252,154

Capitalcontributedto statutory

funds

Consolidated Condensed Interim Statement of Changes in Equity for the half year ended June 30, 2016 (Un-audited)





-

-

- -

-

- -

-

-

-

- - - -

-

-

-

-

- -

-

-

-

-

-

5,207,013(547,825)(728,458)

(1,291,795)142,359

(357,147)201,362

2,625,509

(178,835)(565,448)

(5,391)(3)55

(749,622)

1,875,887

633,718766,513

(8,812,214)4,295,339

(39,449)(4,858)11,700

(3,149,251)

(496,667)(37,088)750,000216,245

(1,057,119)652,356

(404,763)





Consolidated Condensed Interim Statement of Cash Flows

3,254,989(460,022)(799,705)

(1,127,927)225,693

(300,357)169,524962,195

(145,670)(521,626)

(48,233)-

48,164(667,365)

294,830

526,092602,733

(1,461,371)998,171(53,308)

(355)10,811

622,773

(359,984)(43,291)

(675,000)(1,078,275)

(160,672)831,967671,295

OPERATING ACTIVITIES

Half Year ended

June 30, 2016 June 30, 2015


a) Underwriting activitiesPremiums receivedReinsurance premiums paidClaims paidSurrenders paidReinsurance and other recoveries receivedCommissions paidCommissions receivedNet cash generated from underwriting activities

b) Other operating activitiesIncome tax paidGeneral management expenses and operating payments - netLoans advancedInter fund transactionsLoan repayments receivedNet cash used in other operating activities

Total cash generated from / (used in) operating activities

INVESTMENT ACTIVITIESProfit / return receivedDividends receivedPayments for investmentsProceeds from redemption of investmentsFixed capital expenditureCapital work in progressProceeds from disposal of fixed assets

Total cash (used in) / generated from investing activities

FINANCING ACTIVITIESDividends paidFinancial charges paidLoan repaid

Total cash used in financing activities

Net cash generated from all activitiesCash at the beginning of the periodCash at the end of the period

Restated

(47,491)

1,548,848

483,033

11,161

1,152,671

(54,943)

1,237,310

917,494

4,641

866,116






Half Year ended

June 30, 2016 June 30, 2015


Profit after taxation

Reconciliation to profit and loss account

Operating cash flows

Depreciation / amortisation

Financial charges

Gain on disposal of fixed assets

Increase in assets other than cash

Increase in liabilities

Others

Surplus of statutory funds

Dividend and other investment income

Share of profit of associates

Return on bank balances

1,875,887

(39,746)

(37,088)

3,755

1,080,843

(4,122,037)

294,830

(34,435)

(23,952)

5,037

84,464

(1,168,824)

Cash comprises of cash in hand and at banks, stamps in hand, short term

placements with banks and short term finance

Definition of cash

Restated

Cash for the purpose of statement of cash flows consists of:Cash and other equivalentsCurrent and other accountsDeposits maturing within 12 monthsShort term finance

1,038889,761

-(1,295,562)

(404,763)

2,008324,287345,000

-671,295





Consolidated Condensed Interim Statement of Premiums for the quarter and half year ended June 30, 2016 (Un-audited)


June 30, 2016 June 30, 2015

14,259344,876

39,222760,100

4,66996,67934,289

- - -

1,294,094

1,577,461


Direct and facultativeNon-Life Insurance:

281,39699,699

181,71065,769

108,825

737,399

435,24637,726

397,67359,263

120,866

1,050,774

499,29330,194

388,96687,590

150,856

1,156,899

217,349107,231190,417

37,44278,835

631,274

254,00549,443

- -

52,910

356,358

392,22719,742

3,608 -

77,724

493,301

449,57815,565

2,469 -

85,629

553,241

196,65453,620

1,139 -

45,005

296,418

20,69553,611

189,27837,44233,830

334,856

23,60947,683

153,26326,54032,272

283,367

Fire and property damage Marine, aviation and transportMotorHealth Miscellaneous

Total

Net premium revenue Premiums

written


Opening ClosingPremiums

earnedReinsurance

ceded Opening Closing

Prepaid reinsurancepremium ceded Reinsurance

expense

For the quarter ended June 30, 2016

Quarter ended

Life Insurance - Conventional:15,032

247,69550,647

1,645,8344,780

130,9822,763

135,314178

1,828

2,235,053

2,972,452

-------

---

-

1,050,774

-------

---

-

1,156,899

15,032247,695

50,6471,645,834

4,780130,982

2,763

135,314178

1,828

2,235,053

2,866,327

2,0429,341

20,4025,2153,540

73 -

328 - -

40,941

397,299

-------

---

-

493,301

-------

---

-

553,241

2,0429,341

20,4025,2153,540

73 -

328 - -

40,941

337,359

12,990238,354

30,2451,640,619

1,240130,909

2,763

134,986178

1,828

2,194,112

2,528,968

Life participatingLife non-participating (individual)Life non-participating (group)Investment linked businessAccident and health (individual)Accident and health (group)Pension business fund

Life Insurance - Takaful:

Individual familyGroup familyGroup health

Total

Grand total

June 30, 2016 June 30, 2015

29,031552,409115,493919,996

7,882278,155

38,858

- - -

1,941,824

2,501,502



646,844234,399472,122104,419208,129

1,665,913

276,74324,623

286,81550,038

107,264

745,483

499,29330,194

388,96687,590

150,856

1,156,899

424,294228,828369,971

66,867164,537

1,254,497

581,947119,052

4,558 -

108,485

814,042

250,30913,215

179 -

70,041

333,744

449,57815,565

2,469 -

85,629

553,241

382,678116,702

2,268 -

92,897

594,545

41,616112,126367,703

66,86771,640

659,952

49,340102,635298,202

51,37558,126

559,678


Total

Net premium revenue Premiums

written


Opening ClosingPremiums

earnedReinsurance

ceded Opening Closing

Prepaid reinsurancepremium ceded Reinsurance

expense

For the half year ended June 30, 2016

Half Year ended


439,833129,808

2,530,1668,971

395,6324,621

192,060389

2,747

3,734,075

5,399,988

-------

---

-

745,483

-------

---

-

1,156,899

29,848439,833129,808

2,530,1668,971

395,6324,621

192,060389

2,747

3,734,075

4,988,572

4,08218,09338,195

9,8356,481

12 -

499 - -

77,197

891,239

-------

---

-

333,744

-------

---

-

553,241

4,08218,09338,195

9,8356,481

12 -

499 - -

77,197

671,742

25,766421,740

91,6132,520,331

2,490395,620

4,621

191,561389

2,747

3,656,878

4,316,830




Total

Grand total





Consolidated Condensed Interim Statement of Claims for the quarter and half year ended June 30, 2016 (Un-audited)




167,28828,356

497,1082,593

138,50266,196

3,481 -

3

925,971

1,132,739

-------

---

-

701,125

-------

---

-

1,150,063

22,444167,288

28,356497,108

2,593138,502

66,196

3,481 -

3

925,971

1,581,677

-2,3482,075

- - - -

- - -

4,423

80,145

-------

---

-

440,232

-------

---

-

823,574

-2,3482,075 - - - -

- - -

4,423

463,487

22,444164,940

26,281497,108

2,593138,502

66,196

3,481 -

3

921,548

1,118,190

16,495104,236

33,179357,820

(1,183)105,211

847

- - -

616,605

806,288




Total

Grand Total


52,76532,01171,47125,42725,094

206,768

220,849142,149118,82631,443

187,858

701,125

489,509134,592138,326

33,710353,926

1,150,063

321,42524,45490,97127,694

191,162

655,706

38,64918,600

58 -

18,415

75,722

189,70474,68014,728

-161,120

440,232

420,82866,75714,687

-321,302

823,574

269,77310,677

17 -

178,597

459,064

51,65213,77790,95427,69412,565

196,642

52,24225,01983,47719,844

9,101

189,683

Fire and property damage Marine, aviation and transportMotorHealth MiscellaneousTotal

Claims paidOutstanding

claimsOpening Closing

Claimsexpense

Reinsuranceand otherrecoveriesreceived Opening Closing

Reinsuranceand other

recoveries inrespect of

outstanding claimsReinsurance

and otherrecoveriesrevenue


June 30, 2016 June 30, 2015

Net claims expenseQuarter ended



279,02556,121

940,5154,766

246,76066,196

4,42850

220

1,636,620

2,022,519

-------

---

-

643,816

-------

---

-

1,150,063

38,539279,025

56,121940,515

4,766246,760

66,196

4,42850

220

1,636,620

2,528,766

-2,4682,0521,442 - - -

- - -

5,962

122,960

-------

---

-

391,659

-------

---

-

823,574

-2,4682,0521,442 - - -

- - -

5,962

554,875

38,539276,557

54,069939,073

4,766246,760

66,196

4,42850

220

1,630,658

1,973,891

36,343182,782

56,422918,400

(79)198,276

15,073

- - -

1,407,217

1,728,511




Total

Grand Total


69,20961,829

154,17948,64352,039

385,899

217,148135,313120,843

34,706135,806

643,816

489,509134,592138,326

33,710353,926

1,150,063

341,57061,108

171,66247,647

270,159

892,146

51,10144,788

58 -

21,051

116,998

184,14880,49814,687

-112,326

391,659

420,82866,75714,687

-321,302

823,574

287,78131,047

58 -

230,027

548,913

53,78930,061

171,60447,64740,132

343,233

55,46142,018

155,06541,81426,936

321,294

Fire and property damage Marine, aviation and transportMotorHealth MiscellaneousTotal

Claims paidOutstanding

claimsOpening Closing

Claimsexpense

Reinsuranceand otherrecoveriesreceived Opening Closing

Reinsuranceand other

recoveries inrespect of

outstanding claimsReinsurance

and otherrecoveriesrevenue


June 30, 2016 June 30, 2015

Net claims expenseHalf year ended





Consolidated Condensed Interim Statement of Expenses for the quarter and half year ended June 30, 2016 (Un-audited)


* Commissions from reinsurers is arrived after taking impact of opening and closing unearned commission.



30,38810,60717,091

67613,145

71,907

-----

-

-----

-

30,38810,60717,091

67613,145

71,907

32,41511,56227,187

6,88411,921

89,969

62,80322,16944,278

7,56025,066

161,876

39,10522,462

- -

8,315

69,882

23,698(293)

44,2787,560

16,751

91,994

2,7902,193

51,379(207)

15,202

71,357


Total

Commissionspaid orpayable

Deferredcommission

Opening Closing

Netcommission

expense

Othermanagement

expensesUnderwriting

expense

*Commissionsfrom

reinsurers


1,36338,434

3,776103,489

4,09412,171

-

56,60231

329

220,289

292,196

-------

---

-

-

-------

---

-

-

1,36338,434

3,776103,489

4,09412,171

-

56,60231

329

220,289

292,196

43614,24410,33428,982

1,47723,011

-

12,085 - -

90,569

180,538

1,79952,67814,110

132,4715,571

35,182 -

68,68731

329

310,858

472,734

1,79952,524

9,547131,382

5,57135,182

-

68,54231

329

304,907

396,901

9,819173,643

18,483106,813

4,89027,688

380

- - -

341,716

413,073

-154

4,5631,089

- - -

145 - -

5,951

75,833

Life Insurance - Conventional:Life participatingLife non-participating (individual)Life non-participating (group)Investment linked businessAccident and health (individual)Accident and health (group)Pension business fund



Total

Grand total

June 30, 2016 June 30, 2015

Net underwriting expenseQuarter ended



44,16019,54538,675

2,30621,959

126,645

-----

-

-----

-

44,16019,54538,675

2,30621,959

126,645

62,07622,49258,49910,02020,018

173,105

106,23642,03797,17412,32641,977

299,750

72,06244,576

8 -

17,180

133,826

34,174(2,539)97,16612,32624,797

165,924

8,1873,116

95,9684,068

20,283

131,622


Total

Commissionspaid orpayable

Deferredcommission

Opening Closing

Netcommission

expense

Othermanagement

expensesUnderwriting

expense

*Commissionsfrom

reinsurers


1,76763,842

8,812156,505

6,54815,722

-

78,90041

391

332,528

459,173

-------

---

-

-

-------

---

-

-

1,76763,842

8,812156,505

6,54815,722

-

78,90041

391

332,528

459,173

1,37645,74619,44566,050

5,09143,273

-

22,433 - -

203,414

376,519

3,143109,588

28,257222,555

11,63958,995

-

101,33341

391

535,942

835,692

3,143109,200

19,731220,611

11,63958,978

-

101,11341

391

524,847

690,771

18,584269,327

33,721149,093

8,58152,044

711

8,459 - -

540,520

672,142

-388

8,5261,944 -

17 -

220 - -

11,095

144,921

Life Insurance - Conventional:Life participatingLife non-participating (individual)Life non-participating (group)Investment linked businessAccident and health (individual)Accident and health (group)Pension business fund



Total

Grand total

June 30, 2016 June 30, 2015

Net underwriting expenseHalf year ended





Consolidated Condensed Interim Statement of Investment Income for the quarter and half year ended June 30, 2016 (Un-audited)

Non-life Insurance:

Income from non-trading investments

Held to maturityReturn on government securitiesDividend income on available for sale investmentsGain on sale of available for sale investmentsProvision for diminution in value of available for sale investments-netLess: Investment related expenses

Life Insurance - Conventional

Shareholders' fund

Return on government securitiesGain on sale of investments held as 'available for sale'Dividend incomeInterest income on loans to employees / agents

Statutory Funds

Life participatingReturn on government securitiesUnrealised gain on revaluation of available-for-sale investmentsDividend incomeGain / (loss) on sale of investments classified as available-for-sale

Life non-participating (individual)Return on government securitiesUnrealised gain on revaluation of available-for-sale investmentsDividend incomeGain on sale of investments classified as available-for-sale

Life non-participating (group)Return on government securitiesUnrealised gain on revaluation of available-for-sale investmentsDividend incomeGain on sale of investments classified as available-for-sale

Investment linked businessReturn on government securitiesUnrealised gain on available-for-sale investmentGain / (loss) on sale of investment held as available-for-sale

Accident and health (individual)Return on government securitiesDividend incomeGain on sale of investments classified as available-for-sale

Accident and health (group)Return on government securitiesUnrealised gain on revaluation of available-for-sale investmentsDividend incomeGain on sale of investments classified as available-for-sale

Pension business fundReturn on government securities

Life Insurance - Takaful

Individual familyGain on sale of investments classified as available-for-sale

Net investment income

Net investment income-statutory fundsNet investment income-other

Half year ended

June 30, 2016 June 30, 2015

Un-audited

7,906412,369

10,96217,099(7,520)

440,816

34,90510,457

2,72419

48,105

78,991838

5,241(48)

85,022

241,1142,277

14,245(447)

257,189

10,329-

8642,233

13,426

180,80393,67573,677

348,155

1,801129366

2,296

10,107-

3693,690

14,166

5,167

2,991

1,217,333

728,412488,921

1,217,333

7,902412,535395,761

(982)(6,439)

808,777

35,1656,5141,743

243,424

74,513(2,412)

3,35412,53187,986

217,944(6,103)

9,11434,059

255,014

10,801-

5532,067

13,421

139,174153,626

7,645300,445

1,92639

3512,316

8,220-

236882

9,338

4,253

-

1,524,974

672,773852,201

1,524,974

Quarter Ended

June 30, 2016 June 30, 2015


Un-audited

3,954403,71110,96222,618(3,746)

437,499

17,98210,457

2,72419

31,182

40,146(993)

5,241887

45,281

124,627(7,831)14,245

7,542138,583

5,094-864

2,2338,191

99,69393,675(9,224)

184,144

904129366

1,399

5,334-369

3,6909,393

2,630

2,470

860,772

392,091468,681860,772

3,956409,537395,761

36,998(4,809)

841,443

17,7406,0661,743-

25,549

36,9454,9343,354

11,66956,902

115,08713,864

9,11431,716

169,781

5,415-

5531,9257,893

67,48559,969

2,416129,870

84339

3301,212

5,370-

236821

6,427

2,342

-

1,241,419

374,427866,992

1,241,419


Notes to and forming part of the Condensed Interim Financial Information

- Life (participating)- Life (non-participating) – Individual- Life (non-participating) – Group- Investment Linked- Accident & Health – Individual- Accident & Health – Group- Pension Business Fund- Individual Family Takaful- Group Family Takaful- Group Health Takaful

The "Group" consist of:

STATUS AND NATURE OF BUSINESS1.

1.1

(i) IGI Insurance Limited - Holding Company(ii) IGI Life Insurance Limited - Subsidiary Company

IGI Insurance Limited ("the Holding Company"), a Packages Group Company, was incorporated as a public limitedcompany in 1953 under Companies Ordinance, 1984 and is quoted on the Pakistan Stock Exchange Limited (formerlyKarachi Stock Exchange Limited) and is engaged in providing general insurance services in spheres of Fire, Marine,Motor, Health and Miscellaneous. The registered office of the Holding Company is situated at 7th floor, The Forum,Suite No. 701-713, G-20, Block 9, Khayaban-e-Jami, Clifton, Karachi.

During the preceding year, the Board of Directors of the Holding Company passed a resolution to commence WindowTakaful Operations under the provisions of Takaful Rules, 2012. In this regard, during the quarter, the Holding Companyheld an Extra Ordinary General Meeting (EOGM) in which the shareholders have approved amendment in Memorandumof Association of the Holding Company and the same amendment has been approved by Securities and ExchangeCommission of Pakistan. The Holding Company intends to complete other legal formalities in this respect in the first halfof year ending December 31, 2016.

Holding Company1.2

In accordance with share purchase agreement the Holding Company acquired 34,838,687 shares of IGI Life InsuranceLimited [formerly American Life Insurance Company (Pakistan) Limited], the Subsidiary Company on April 10, 2014resulting in the controlling interest of 69.68 % of the paid up capital of the Subsidiary. During the previous year, theHolding Company acquired remaining 6,148,003 shares (representing 12.293% of the issued and paid up capital) ofthe Subsidiary Company.

IGI Life Insurance Limited ("Subsidiary Company") was incorporated in Pakistan on October 9, 1994 as a public limitedcompany under the Companies Ordinance, 1984. Its shares are quoted on the Pakistan Stock Exchange Limited. TheCompany commenced its operations on May 25, 1995 after registration with the Controller of Insurance on April 30,1995. The registered office of the Company is situated at 7th floor, The Forum, Suite No. 701-713, G-20, Block 9,Khayaban-e-Jami, Clifton, Karachi.

The Subsidiary Company is engaged in life insurance, carrying on both participating and non-participating business. Inaccordance with the requirements of the Insurance Ordinance, 2000, the Subsidiary Company established a Shareholders’Fund and Separate Statutory Funds, in respect of each class of life insurance business and family takafaul business. TheStatutory Funds established by the Subsidiary Company, in accordance with the advice of the Appointed Actuary are asfollows:

Subsidiary Company1.3


for the quarter and half year ended June 30, 2016 (Un-audited)

STATEMENT OF COMPLIANCE2.

This condensed interim consolidated financial information has been prepared in accordance with the requirementsof International Accounting Standard 34 (IAS 34) 'Interim Financial Reporting' and provisions of and directives issuedunder the Companies Ordinance, 1984, the Insurance Ordinance, 2000, the SEC (Insurance) Rules, 2002 and directivesissued by the SECP. In case where the requirements differ, the provisions of the Companies Ordinance, 1984, theInsurance Ordinance, 2000, the SEC (Insurance) Rules, 2002 and the said directives prevail.

BASIS OF PRESENTATION3.

This condensed interim consolidated financial information is un-audited and is being submitted to the shareholdersin accordance with the listing regulations of Pakistan Stock Exchange and section 245 of the Companies Ordinance,1984. This condensed interim consolidated financial information of the Group has been prepared in accordance withthe approved accounting standards as applicable in Pakistan for interim financial reporting and in the format prescribedby the Securities and Exchange Commission of Pakistan in its circular No. 7 of 2003.

This condensed interim consolidated financial information does not include all the information and disclosures requiredin the annual financial statements, and should be read in conjunction with the Group's annual financial statements forthe year ended December 31, 2015.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES4.

The accounting policies and methods of computation adopted in the preparation of this condensed interim consolidatedinterim financials information are the same as those applied in the preparation of the annual financial statements forthe year ended December 31, 2015.

FINANCIAL AND INSURANCE RISK MANAGEMENT6.

The financial and insurance risk management objectives and policies are consistent with those disclosed in the annualfinancial statements of the Group for the year ended December 31, 2015.

PREMIUM DEFICIENCY RESERVE7.

No provision has been made in respect of premium deficiency reserve as the unearned premium reserve for each classof business as at period end is adequate to meet the expected future liability, after reinsurance, from claims and otherexpenses, expected to be incurred after the balance sheet date in respect of policies in force at the balance sheet date.

SIGNIFICANT ESTIMATES AND JUDGEMENT5.

The preparation of the condensed interim consolidated financial information requires management to make judgements,estimates and assumptions that affect the application of accounting policies and the reported amounts of assets andliabilities, income and expenses. Actual results may differ from these estimates.

In preparing this condensed interim consolidated financial information, the significant judgements made by managementin applying the Group's accounting policies and the key sources of estimating uncertainty were the same as those appliedto the annual financial statements for the year ended December 31, 2015.

BORROWINGS8.

Short term credit facilities available from various commercial banks under mark-up arrangements amount to Rs. 3,550million (2015: Rs. 2,250 million). The rates of mark-up on these facilities range from 6.22% to 7.92% per annum (2015:6.70% to 7.85% per annum) and are payable latest by July 15, 2016. These facilities are secured against pledge ofshares held by the Holding Company.

The Holding Company obtained a long term finance facility amounting to Rs. 1,000 million during 2015 for the purposeof equity investment in Packages Construction Limited, out of which Rs. 750 million was availed during the half yearended June 30, 2016. The rate of mark-up on this facility is 6.72% per annum (2015: Nil). Principal repayment is to bemade in 6 equal semi-annual installments and will be due after 30th month of the drawdown date. The first disbursementwas on May 26, 2016. This facility is secured against pledge of shares held by the Holding Company.

8.1

8.2



Holding Company

In case of tax year 2010, the Additional Commissioner Inland Revenue (ACIR) passed an amended assessmentorder under section 122(5A) of the Income Tax Ordinance, 2001 (the Ordinance) wherein tax on dividend andproperty income was charged at corporate tax rate by treating such income as business income of the HoldingCompany under Fourth Schedule to the Ordinance. Further, the ACIR had disallowed provision of IBNR undersection 34(3) of the Ordinance. As a result of the amended assessment demand of Rs. 93.445 million was created.The Holding Company filed appeal and application for stay of tax demand before the CIR(A) against the aboveassessment order. The Holding Company also filed a petition against the said order before the Honorable SindhHigh Court which was referred back by the Honorable Sindh High Court to the CIR(A). Pursuant to appeal, thelearned CIR(A) vide combined appellate dated March 10, 2016 decided all issues in favor of the Holding Company.The tax department has filed further appeal before the Appellate Tribunal Inland Revenue (ATIR) in respect of theissues on which relief was allowed by the CIR(A).

In case of tax year 2011, the Additional Commissioner Inland Revenue (ACIR) passed an amended assessment orderunder section 122(5A) of the Ordinance wherein tax on dividend and property income was charged at corporatetax rate by treating such income as business income of the Holding Company under Fourth Schedule to the Ordinance.Further, the ACIR had also disallowed provision of IBNR, claim of brought forward loss for the tax year 2008 andWorkers’ Welfare Fund @ 2% of the accounting profit for the year had also been levied. Moreover, the ACIR hadalso disallowed refund adjustments for tax years 2004 and 2009 in the amended assessment order. As a result ofthe amended assessment demand of Rs.142.414 million was created. The Holding Company filed appeal andapplication for stay of tax demand before the CIR(A) against the above assessment order. The Holding Company alsofiled a petition against the said order before the Honorable Sindh High Court which was referred back by theHonorable Sindh High Court to the CIR(A). Pursuant to appeal, the learned CIR(A) vide combined appellate datedMarch 10, 2016 decided issues pertaining to chargeability of tax on dividend and property income, provision ofIBNR and levy of Workers' Welfare Fund in favor of the Holding Company. As regards, credit / adjustment of refundsavailable to the Holding Company, the CIR(A) has remanded back the issue with the directions to verify the claimof refunds and allow the adjustment as per law. The tax department has filed further appeal before the AppellateTribunal Inland Revenue (ATIR) in respect of the issues on which relief was allowed by the CIR(A).

In case of tax year 2012, subsequent to period end, the Additional Commissioner Inland Revenue (ACIR) has passedan amended assessment order under section 122(5A) of the Income Tax Ordinance, 2001 (the Ordinance) whereintax on dividend and property income was charged at corporate tax rate (i.e. 35% for the year) by treating such incomeas business income of the Holding Company under Fourth Schedule to the Ordinance. Further, the ACIR haddisallowed provision of IBNR under section 34(3) of the Ordinance. As a result of the amended assessment demandof Rs.106.562 million has been created. The Holding Company is in process of filing an appeal and application forstay of tax demand before the CIR(A) against the above assessment order.

In case of tax year 2013, the Additional Commissioner Inland Revenue (ACIR) has passed an amended assessmentorder under section 122(5A) of the Income Tax Ordinance, 2001 (the Ordinance) wherein tax on dividend andproperty income was charged at corporate tax rate (i.e. 35% for the year) by treating such income as business incomeof the Holding Company under Fourth Schedule to the Ordinance. Further, the ACIR has also disallowed provisionof IBNR, claim of brought forward loss for the tax year 2012 and has also made an addition on account of disposalof fixed assets at less than Fair Market Value (FMV) in the amended assessment order. As a result of the amendedassessment, demand of Rs. 95.008 million was created. The Holding Company has obtained stay order from theHonorable Sindh High Court in respect of the above tax demand. Further, against the aforesaid order, the HoldingCompany has filed an appeal before CIR(A) which is pending adjudication.

In case of tax year 2015, the Assistant Commissioner Inland Revenue (ACIR) has passed an order under section 221of the Ordinance charging Super tax under section 4B amounting to Rs. 27.913 million. The Holding Company haswritten a letter to ACIR to adjust the aforesaid demand against the refunds for the tax years 2008 and 2012 amountingto Rs. 18.030 million and Rs. 13.400 million respectively, however no adjustment has been made to-date. Further,the Holding Company filed an application with the ACIR requesting to annul the order based on various legal grounds,however, no order has yet been passed in this regard. Moreover, the Holding Company has also filed an appealbefore the CIR(A) in respect of the order passed under section 221 of the Ordinance, which is pending adjudication.

-

There is no change in the status of contingencies as disclosed in the annual financial statements of the Group for theyear ended December 31, 2015 except for following:

9.1 Contingencies - Taxation

CONTINGENCIES AND COMMITEMENTS9.



Subsidiary Company

While finalising the tax assessment for the accounting years ended December 31, 2012 (Tax Year 2013) and December31, 2011 (Tax Year 2012) the taxation officer raised additional tax demand of Rs. 1.029 million and Rs. 6.910 millionrespectively on the Subsidiary Company on non-deduction of withholding tax under section 151(d) of the IncomeTax Ordinance, 2001 on the amount of surrenders paid during the respective years. The Subsidiary Company filedappeal before Commissioner Inland Revenue Appeals (CIRA) in respect of said tax years which were decided infavour of the Subsidiary Company. The Commissioner Inland Revenue has now filed before Appellate Tribunal (ATIR)challenging the order passed by CIRA.

-

The management and tax advisor of the Group are confident that the above matters will be decided in the Group's favor.Accordingly, no provision has been recognised in this condensed interim consolidated financial information.



Commitments9.2

In respect of capital expenditure Not later than one year 17,681857

Market value of investments as at June 30, 2016 is Rs. 65,226 million (December 31, 2015: Rs. 61,503 million).10.1



FIXED ASSETS - Tangible11.

Opening book valueAdd:Additions during the period / year

Less :Net book value of assets disposed during the period / yearDepreciation for the period / year

Add:Capital work in progress

Closing book value

291,384

57,139

7,94533,88741,832

306,691

13,069

319,760

275,664

117,176

50,66758,727

109,394283,446

7,938

291,384

Note

INVESTMENTS10.

The investments comprise of the following:

Investment in associates

Held to maturity- Government securities

Available for sale- Quoted- Government securities- Listed mutual funds- Unquoted

At fair value through profit or loss

4,640,899

124,558

7,586,6483,078,5271,569,1096,609,130

18,843,414

719,254

24,328,125

7,699,120

124,806

7,619,61911,806,0451,835,076

115,76221,376,502

378,375

29,578,803

10.1

10.1

10.110.110.1

Subsidiary Company



TRANSACTIONS WITH RELATED PARTIES12.

Related parties comprise associated undertakings, other related companies, directors of the Group, key managementpersonnel and post employment benefit plans. The Group in the normal course of business carry out transactions withvarious related parties. All transactions with related parties have been carried out on commercial terms and conditions.

Premium underwrittenPremium collected Claims expenseCommission expenseCommission paidRental incomeFixed assets disposed Dividend receivedDividend paidKey management personnel compensationInvestment / (divestment) in shares - net of provision for impairmentBrokerage commissionMark-up on loanCharge in respect of gratuity fundCharge in respect of provident fundContribution to gratuity fundContribution to provident fund

63,72886,1141,8254,0713,329

177-

190,19839,066

-

(60,531)------

62,85576,65428,825

3,9072,232

177615

330,57252,088

-

2,418,674------

- - - - - - - - - -

---

8,92510,344

3,5951,176

- - - - - - - - - -

---

14,75610,618

3,9574,473

517875111

- - -

2,960 -

107,28272,371

- -

2 - - - -

5231,947

76 - - - - -

155,51487,132

- - - - - - -

155,158252,288

17,22310,489

6,4281,716

23 - - -

-2,927 - - - - -

169,456239,23259,37815,8979,7401,716 -

6,767 - -

299,6258,443 - - - - -


Key Managementpersonnel

(including directors)Other related

parties



Associates

Transactions

Period-end balances

14,1441,107 -

3,873,03123,296

-

- - -

28,9452,779 -

6,291,70624,155

-

- - -

-----

-

-378

(1,167)

-----

-

-(5,907)(1,939)

189----

-

---

650----

-

---

25,8264,1061,001

264,9856,045

-

4,429 - -

25,0248,087-

564,6109,355

1,262

6,381--

Premium receivableCommission payableClaim payableInvestment in sharesOther receivablePayable in respect of Administrative Services receivedReceivable in respect of Administrative Services provided(Payable to) / Receivable from gratuity fund(Payable to) / Receivable from provident fund







(including directors)Other related

partiesAssociates

as at

for the half year endedJune 30, 2016 June 30, 2015







SEGMENT REPORTING13.Class of business wise revenue and results have been disclosed in the condensed interim statement of premiums andprofit and loss account, respectively, prepared in accordance with the requirement of Insurance Ordinance, 2000 andthe SEC (Insurance) Rules, 2002.

EARNINGS PER SHARE14.

Basic / diluted earnings per share

Profit for the period

Earnings per share

DATE OF AUTHORIZATION FOR ISSUE16.This consolidated condensed interim financial information has been authorized for issue on August 25, 2016 by theBoard of Directors of the Group.

CORRESPONDING FIGURES15.Corresponding figures have been restated / rearranged and reclassified, wherever necessary, for the purpose ofcomparison. There have been no significant reclassifications / restatements in the consolidated condensed interimfinancial information.

Weighted average number of ordinary shares

461,568 1,040,139

3.76 8.48

Quarter Ended

June 30, 2016 June 30, 2015


Un-audited

(Rupees)

Restated

122,689,532 122,689,532

(Number of shares)

866,116 1,152,671

7.06 9.40

Half Year ended

June 30, 2016 June 30, 2015

Un-audited

(Rupees)

Restated

122,689,532 122,689,532

DATE OF AUTHORIZATION FOR ISSUE17.Figures in these consolidated condensed interim financial information have been rounded off to the nearest thousandof rupees.

Segment assetsUnallocated assetsConsolidated total assetsSegment liabilitiesUnallocated liabilitiesConsolidated total liabilities

1,282,020 -

1,386,732 -

17,620,60416,965,52034,586,12417,270,921

3,449,38620,720,307

231,464 -

279,786 -

318,913 -

746,438 -

66,437 -

169,549 -

539,666 -

676,667 -

1,720,206 -

1,199,957 -

5,319,398 -

5,044,498 -

359,919 -

264,644 -

7,073,572 -

6,936,324 -

33,520 -

30,396 -

477,405 -

329,019 -

47,327 -

43,480 -

144,973 -

157,827 -

865 -

775 -

4,919 -

4,829 -

Segment assetsUnallocated assetsConsolidated total assetsSegment liabilitiesUnallocated liabilitiesConsolidated total liabilities

702,645-

679,014-

14,283,25114,031,25128,314,50213,423,048

1,416,09614,839,144

219,711-

245,823-

239,840-

451,642-

37,983-

97,910-

286,068-

236,325-

1,656,580-

1,182,293-

5,009,524-

4,813,542-

294,068-

256,386-

5,292,284-

5,063,162-

34,224-

23,246-

359,825-

228,393-

103,433-

99,938-

42,943-

41,760-

412-

298 -

3,711-

3,316-


Non-life Insurance Life InsuranceDecember 31 , 2015 (Audited)

Fire andpropertydamage

Lifenon-participating

Accident andhealth business

Marine,aviation

andtransport

Motor Health Miscellaneous Lifeparticipating

Individual Group

Investmentlinked

business Individual Group

Pensionbusiness

fund

Takaful window

Individualfamily

Groupfamily

Grouphealth

Aggregatetotal


Non-life Insurance Life InsuranceJune 30, 2016 (Un-audited)

Fire andpropertydamage

Lifenon-participating

Accident andhealth business

Marine,aviation

andtransport

Motor Health Miscellaneous Lifeparticipating

Individual Group

Investmentlinked

business Individual Group

Pensionbusiness

fund

Takaful window

Individualfamily

Groupfamily

Grouphealth

Aggregatetotal


Shareholders Category No. ofShareholder

No. ofShares Held Percentage

Directors, Chief Executive Officer, and their spouse

Associated Companies, undertakings and related parties.

19

4

38,259,391

38,506,598

31.18

31.39

9

10

3

2,048,126

1,672,144

60,755,519

Banks Development Financial Institutions,

Insurance Companies

Modarabas and Mutual Funds

Share holders holding 10%

General Public :

a. Local

b. Foreign

Others

1.67

1.36

49.52

Non Banking Financial Institutions. 7 7,657,098 6.24

and minor children.

Shareholder’s Information for the Half Year Ended June 30, 2016 (Un-audited)

Total (excluding : share holders holding 10%) 1,791 122,689,532 100.00

1,662

-

80

17,517,865

-

17,028,310

14.28

-

13.88

1,791

Number of Shareholders37637820439517349292620984686563117421112132131122111212311111111112111111111111111111111111111

Total Number of Shares Held13,967

110,939159,786983,894

1,303,989613,268509,079590,077564,807293,816301,868175,153287,034424,939348,400332,264433,601246,42188,60090,700

704,860434,635225,074118,468123,022127,100274,466148,415458,010318,430164,852515,222177,100205,700438,600445,671226,235237,000242,100507,082285,489595,179907,897307,500320,865329,966334,547343,500364,000365,767377,600440,485488,678

1,101,498580,176585,457624,995625,001667,142759,000793,300814,000862,830922,500997,720

1,063,2071,167,9161,214,4751,226,8011,676,6771,686,0001,911,7401,946,3642,407,1004,039,0284,086,3854,518,4656,230,119

13,022,09320,853,96626,879,460

122,689,532

To100500

1,0005,000

10,00015,00020,00025,00030,00035,00040,00045,00050,00055,00060,00070,00075,00085,00090,00095,000

105,000110,000115,000120,000125,000130,000140,000150,000155,000160,000165,000175,000180,000210,000220,000225,000230,000240,000245,000255,000290,000300,000305,000310,000325,000330,000335,000345,000365,000370,000380,000445,000490,000555,000585,000590,000625,000630,000670,000760,000795,000815,000865,000925,000

1,000,0001,065,0001,170,0001,215,0001,230,0001,680,0001,690,0001,915,0001,950,0002,410,0004,040,0004,090,0004,520,0006,235,000

13,025,00020,855,00026,880,000

From1

101501

1,0015,001

10,00115,00120,00125,00130,00135,00140,00145,00150,00155,00165,00170,00180,00185,00190,001

100,001105,001110,001115,001120,001125,001135,001145,001150,001155,001160,001170,001175,001205,001215,001220,001225,001235,001240,001250,001285,001295,001300,001305,001320,001325,001330,001340,001360,001365,001375,001440,001485,001550,001580,001585,001620,001625,001665,001755,001790,001810,001860,001920,001995,001

1,060,0011,165,0011,210,0011,225,0011,675,0011,685,0011,910,0011,945,0012,405,0014,035,0014,085,0014,515,0016,230,001

13,020,00120,850,00126,875,001

Pattern of Shareholding for the Half Year Ended June 30, 2016 (Un-audited)


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