jubilee life Insurance investment income dropped

Jubilee Life Insurance has made a profit of Rs127.3 million in the first quarter of 2013, up by 8.5% from the corresponding three-month period in 2012, according to a notice sent to the Karachi Stock Exchange.Speaking to local news paper, Jubilee Life Insurance Chief Manager for Business Strategy and Special Projects Kashif Naqvi said the rise of 8.5% in the company’s after-tax profit was satisfactory if compared to profits of other life insurance companies in the same period. “Investment income of almost all insurance companies has dropped over this period. This has a direct impact on a company’s profitability,” he said.Although premium revenues of Jubilee Life Insurance increased 34.8% over the three-month period, total revenues of the company increased by 19.3% mainly because of low investment income. Investment and other income was Rs842.1 million in the first quarter of 2012, but it dropped to Rs624.5 million in January-March 2013, reflecting a year-on-year decrease of 25.8%.Naqvi declined to comment on the reasons of the significant drop witnessed in investment income, saying the question should be put to the company CEO.While total revenues increased by 19.3%, the company’s expenses also rose by 18.3% in the same period. “Comparing the increases in revenues and expenses does not make sense, as expenses are linked to premiums, and do not affect investment income,” Naqvi said. Although the notice sent to the KSE website does not state the company’s profit that is driven solely from its core business, Naqvi said its share was ‘substantial.’