Quarterly Accounts (September) - Jubilee Life Insurance

14 CONDENSED INTERIM STATEMENT OF EXPENSES
FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2013 - UNAUDITED
Individual
life
unit linked
Statutory funds
Conventional
business
Accident
& Health
Overseas
Group Life
and Health
Business
Nine months ended
September
30, 2013
September
30, 2012
Quarter ended
September
30, 2013
September
30, 2012
Acquisition costs
(Rupees in ‘000)
Remuneration to insurance intermediaries on individual policies:
- Commission on first year premiums 1,739,170 71 23 - 1,739,264 1,378,618 523,258 411,752
- Commission on second year premiums 122,865 20 8 - 122,893 89,255 39,695 28,961
- Commission on subsequent renewal premiums 68,350 65 9 - 68,424 46,459 23,543 15,233
- Commission on single premiums 6,242 - - - 6,242 4,001 1,887 1,001
1,936,627 156 40 - 1,936,823 1,518,333 588,383 456,947
Remuneration to insurance intermediaries on group policies:
- Commission - 130,091 17,031 - 147,122 182,148 46,581 44,835
Branch overheads 772,667 28,407 23,767 - 824,841 694,903 283,474 234,726
Other acquisition costs:
- Policy stamps 66,416 179 286 - 66,881 65,440 24,868 21,076
2,775,710 158,833 41,124 - 2,975,667 2,460,824 943,306 757,584
Administration expenses
Salaries, allowances and other benefits 201,278 26,355 31,669 1,998 261,300 201,966 95,530 68,341
Charge for defined benefit plan 4,587 671 809 48 6,115 4,185 2,075 1,328
Contribution to defined contribution plan 7,482 1,091 1,226 74 9,873 7,898 3,558 2,699
Travelling expenses 12,547 2,375 2,155 100 17,177 16,585 3,893 3,695
Auditors' fees 3,088 274 128 7 3,497 1,744 811 607
Actuary's fees 4,735 706 452 25 5,918 5,199 2,018 1,702
Medical fees 1,728 854 506 9 3,097 3,148 877 1,300
Advertisements 64,146 658 1,343 79 66,226 81,625 44,642 33,137
Printing and stationery 24,850 5,491 4,141 215 34,697 18,481 12,921 9,769
Depreciation 29,056 2,060 4,154 211 35,481 26,662 11,333 10,954
Amortisation 4,220 515 549 29 5,313 4,523 1,790 1,531
Rental 28,742 5,627 3,570 205 38,144 23,188 13,558 7,535
Legal and professional charges 6,044 370 209 20 6,643 5,593 2,007 1,492
Supervision fees 19,530 2,085 1,936 56 23,607 16,380 7,631 5,095
Utilities 15,141 1,526 2,161 110 18,938 11,518 7,116 5,088
Entertainment 3,219 268 251 14 3,752 2,541 1,306 705
Vehicle running 5,076 493 1,012 52 6,633 5,018 2,500 1,688
Repairs and maintenance 16,825 2,183 1,286 69 20,363 14,321 8,223 5,857
Bank charges and brokerage 6,409 434 942 15 7,800 7,226 2,747 2,546
Training expenses 2,999 261 398 20 3,678 2,962 798 784
Postages, telegrams and telephone 30,521 1,105 1,902 96 33,624 18,622 11,165 7,021
Staff welfare 4,446 913 518 30 5,907 4,058 1,744 1,282
General insurance 1,715 206 308 16 2,245 2,404 (330) 1,024
Doubtful debts - 261 7,496 - 7,757 7,899 9,386 6,810
Miscellaneous expenses 4,832 1,278 587 42 6,739 754 5,236 238
503,216 58,060 69,708 3,540 634,524 494,500 252,535 182,228
Gross management expenses 3,278,926 216,893 110,832 3,540 3,610,191 2,955,324 1,195,841 939,812
Commission from reinsurers (49,539) (1,719) (651) - (51,909) (39,468) (15,852) (11,544)
Recovery of expenses from associated undertaking - - (17,278) - (17,278) - (8,272) -
Net management expenses 3,229,387 215,174 92,903 3,540 3,541,004 2,915,856 1,171,717 928,268
The annexed notes 1 to 13 form an integral part of this condensed interim financial information.
Masood Noorani
Chairman
Shahid M. Loan
Director
Aly Noor Mahomed Rattansey
Director
Javed Ahmed
Managing Director &
Chief Executive Officer