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Adamjee Insurance: From strength to strength

Adamjee Insurance (KSE:AICL) continued its habit of reporting upbeat results as of late. In the six months ended June 30, 2015, the firm saw its after-tax profits nearly double to Rs. 1.6 billion, as compared to the same period last year. This converts to earnings of Rs. 4.57 per share, against Rs. 2.41 in the year-ago period.adam-jeeThe insurer experienced a double-digit growth in its core business. In 1H15, net premium revenue rose 22 percent to Rs. 3.72 billion. In the second quarter alone, net premiums rose 25 percent. Motor insurance remained the strongest core segment, accounting for 46 percent of the net premium revenue.

Building on the strength of its underwriting business in the first quarter, Adamjee took to a new height in the second quarter. Overall, the first half of 2015 saw the firms underwriting profits rise 15-fold to Rs. 487 million.

Investment income came out to impress shareholders after finishing in the red (9 percent down YoY) in 1QCY15. In the second quarter though, it saw a 171 percent growth. Combine the two, and the six month period experienced a 47 percent jump in investment income to nearly Rs. 1.5 billion.