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for the half year ended30 June 2010 (Unaudited)

When you’ve been around in the insuranceindustry for 50 years as Adamjee Insurance

Company Limited (AICL) has, success is not justabout experience, but also about innovative

services. Continuously exploring and expandingproducts and services over the years, we offer

our valued customers a diversified portfoliocustomized for their needs. Experience 50 yearsof excellence, innovation, stability and growth

provided by our employees.

pakistanserving

for50years

When you’ve been around in the insuranceindustry for 50 years as Adamjee Insurance

Company Limited (AICL) has, success is not justabout experience, but also about innovative

services. Continuously exploring and expandingproducts and services over the years, we offer

our valued customers a diversified portfoliocustomized for their needs. Experience 50 yearsof excellence, innovation, stability and growth

provided by our employees.

Pakistanserving

for50years

contents

Vision and Core Values ............................................................................................................ 1

Company Information .............................................................................................................. 2

Directors’ report on Unconsolidated Financial Statements ....................................... 3

Audittors’ Review Report to the Members ....................................................................... 4

Unconsolidated Financial Statements .................................................................................6

Directors’ report and Consolidated Financial Statements .........................................37

contents

Caterogories of Shareholders and Financial Highlights ............................................... 1

Statement of Value Addition.................................................................................................. 2

Vision and Core Values ............................................................................................................ 3

Company Information .............................................................................................................. 4

Notice of the 49th Annual General Meeting..................................................................... 5

Statement of Material Facts .................................................................................................... 8

Board of Directors .................................................................................................................... 11

CEO’s Message .......................................................................................................................... 13

Company Profile ...................................................................................................................... 14

Events ........................................................................................................................................... 15

Quality Policy ............................................................................................................................ 16

Corporate Responsibility....................................................................................................... 17

Vertical Analysis .........................................................................................................................19

Horizontal Analysis ...................................................................................................................21

Ten years at a glance............................................................................................................... 23

Directors’ report on Unconsolidated Financial Statements .................................... 28

Review report to the members on statement of compliance with

best practices of the Code of Corporate Governance .................................................36

Statement of the Compliance with the Code of Corporate Governance .............37

Classwise Overview..................................................................................................................39

Unconsolidated Financial Statements.............................................................................. 47

Directors’ report and Consolidated Financial Statements.......................................110

Pattern of the Shareholding .............................................................................................. 167

Proxy Form

“Our will is to Explore, Innovate &Differentiate. Our passion is to provideLeadership to the Insurance Industry”.

vision

core values

Integrity: Transparency and Honesty without CompromiseHumility: Empathy, Self Esteem and Respect in all relationshipsFun at Workplace: Work Life BalanceCorporate Social Responsibility: Service to Humanity

Half Yearly Report June, 201001

Adamjee Insurance Company Limited

company information

Board of Directors

Umer Mansha ChairmanAhmed Ebrahim Hasham DirectorAli Munir DirectorAlman Aslam DirectorHassan Mansha DirectorIbrahim Shamsi DirectorKhalid Qadeer Qureshi DirectorMuhammad Usman Ali Usmani (Appointed w.e.f. 08/07/2010 DirectorNabiha Shahnawaz Cheema DirectorS. M. Jawed DirectorMuhammad Ali Zeb Managing Director

& CEO

Advisor

Mian Mohammad Mansha

Audit Committee

Umer Mansha ChairmanAhmed Ebrahim Hasham MemberAli Munir MemberIbrahim Shamsi MemberS. M. Jawed Member

Human Resource Committee

Hassan Mansha ChairmanIbrahim Shamsi MemberUmer Mansha MemberMuhammad Ali Zeb Member

Risk Management Committee

S. M. Jawed ChairmanAli Munir MemberUmer Mansha Member

Strategic Committee

Umer Mansha ChairmanAlman Aslam MemberS. M. Jawed MemberMuhammad Ali Zeb Member

Secretary

Tameez-ul-Haque, F.C.A.

Chief Financial Officer

Mudassar Zubair Ahmed Mirza, A.C.A., A.C.M.A. (UK)

Head of Internal Audit

Rehan Ahmed Khan, F.C.A., A.C.M.A.

Executive Directors

Jehangir Bashir NawazManzar MushtaqNaim Anwar

Auditors

M/s Riaz Ahmad & Co.Chartered Accountants, Karachi

Shares Registrar

Technology Trade (Pvt.) LimitedDagia House, 241-C, Block-2, P.E.C.H.S.,Off Shahrah-e-Quaideen, Karachi

Bankers

Askari Bank LimitedBank Alfalah LimitedBank Al-Habib LimitedBarclays Bank PLC, PakistanCitibank N.A.Faysal Bank LimitedHabib Bank LimitedHSBC Middle East Bank LimitedKASHF Mircrofinance Bank LimitedMCB Bank LimitedNational Bank of PakistanNIB Bank LimitedOman International Bank S.A.O.G.Rozgar Microfinance Bank LimitedSoneri Bank LimitedStandard Chartered Bank LimitedTameer Micro Finance Bank LimitedUnited Bank LimitedZarai Taraqiati Bank Limited

Registered Office

Adamjee HouseP.O. Box No. 4850I.I. Chundrigar Road, Karachi-74000, PakistanPhone: PABX (92-21) 32412623 UAN: (92-21) 111-242-111Fax: (92-21) 32412627E-mail: [email protected]: www.adamjeeinsurance.com

Half Yearly Report June, 2010 02


On behalf of the Board, I am pleased to present the unconsolidated financial statements of the Company for the halfyear ended 30 June 2010.

The highlights for the period under review are as under:

Gross Premium 5,858,280 5,172,654Net Premium 3,431,086 3,578,555Underwriting Results 392,272 401,007Investment Income 223,383 560,130Profit Before Tax 385,918 762,399Profit After Tax 298,689 582,529

Earning per Share (Rupees) 2.41 4.71

The Company has shown a growth of 13.25% in Gross Premium, where as Net Claim and Net Commission has beenreduced by 3.5% and 20.3% respectively over the corresponding period of last year.

The investment income of the Company has declined by 60% as compared to last year and there is a charge of Rs.129.5 million during the period due to the adverse position of stock markets in the country. Increase in investmentincome in the half year of 2009 was mainly due to the 'Reversal of provision for available for sales investments' whichamounts to Rs. 287 million. The Profit Before and After Tax have declined by 49.4 % and 48.7 % respectively from thesame period of last year.

I am pleased t o inform you that the B oard of Directors has declared interim Cash dividend of R e. 1.00 per shar e.

Mr. Atif Bajwa, a director of the Company resigned on 11 June 2010. Mr. Muhammad Usman Ali Usmani was appointedas a director in his place with effect from 8 July 2010.

We thank our shareholders, valued customers, employees and development staff for their sustained support in ensuringthe continued success of our C ompany and trusting A damjee Insurance as their br and of first choic e. We are alsograteful to the I nsurance Division, S ecurity Exchange Commission of P akistan for their c ontinued guidance andassistance.

Karachi: 25 August 2010



For the Half year ended 30 June 2010

30 June2010

30 June2009

(Rupees in thousand)

Muhammad Ali ZebManaging Director & Chief Executive

On behalf of the Board of Directors



Introduction

We have reviewed the accompanying unconsolidated condensed interim balance sheet of ADAMJEE INSURANCECOMPANY LIMITED as at 30 June 2010 and the related:

(i) unconsolidated condensed interim profit and loss account;(ii) unconsolidated condensed interim statement of comprehensive income(iii) unconsolidated condensed interim statement of changes in equity;(iv) unconsolidated condensed interim cash flow statement;(v) unconsolidated condensed interim statement of premiums;(vi) unconsolidated condensed interim statement of claims;(vii) unconsolidated condensed interim statement of expenses;(viii) unconsolidated condensed interim statement of investment income; and

notes forming part thereof for the six-month period then ended (her e-in-after referred to as the "unc onsolidatedcondensed interim financial information"). Management is responsible for the preparation and presentation of thisunconsolidated condensed interim financial inf ormation in ac cordance with ap proved accounting standards asapplicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on this unconsolidatedcondensed interim financial information based on our review. The figures of the unconsolidated condensed interimprofit and loss account, unconsolidated condensed interim statement of premium, unconsolidated condensed interimstatement of claims, unconsolidated condensed interim statement of expenses and unconsolidated condensed interimstatement of investment income for the quarters ended 30 June 2010 and 2009 have not been reviewed and we donot express a conclusion on them as we are required to review only the cumulative figures for the six-month periodended 30 June 2010.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of InterimFinancial Information Performed by the Independent Auditor of the Entity". A review of interim financial informationconsists of mak ing inquiries, primarily of persons r esponsible for financial and ac counting matters, and applyinganalytical and other review procedures. A review is substantially less in scope than an audit conducted in accordancewith International Standards on Auditing and consequently does not enable us to obtain assurance that we wouldbecome aware of all significant matters that might be identified in an audit. Accordingly, we do not express an auditopinion.

On Review of Unconsolidated Condensed Interim Finanical Information

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying unconsolidatedcondensed interim financial information is not prepared, in all material respects, in accordance with approved accountingstandards as applicable in Pakistan for interim financial reporting.

RIAZ AHMAD & COMPANYChartered Accountants

Name of engagement partner:Muhammad Kamran Nasir

Dated: 25 August 2010KARACHI



UNCONSOLIDATED CONDENSED INTERIM BALANCE SHEETAS AT 30 JUNE 2010 (Unaudited)


Note


Share capital and reservesAuthorized share capital 1,500,000 1,500,000

Paid-up share capital 1,237,045 1,124,586

Retained earnings 8,537,584 8,520,042Reserves 1,158,604 1,136,547

9,696,188 9,656,589TOTAL EQUITY 10,933,233 10,781,175

Underwriting provisionsProvision for outstanding claims (including IBNR) 3,623,847 3,575,903Provision for unearned premium 4,980,266 4,405,817Commission income unearned 326,766 228,439Total underwriting provisions 8,930,879 8,210,159

Deferred liabilityDeferred taxation 76,342 87,834Staff retirement benefits 16,827 13,581

Creditors and AccrualsPremiums received in advance 129,222 91,147Amounts due to other insurers / reinsurers 1,044,651 948,716Accrued expenses 138,353 139,319Taxation - Provision less payments 23,990 -Other creditors and accruals 1,481,375 1,165,571

2,817,591 2,344,753Borrowings

Liabilities against assets subject to finance lease 132,494 148,911

Other liabilitiesUnclaimed dividends 28,510 25,965

TOTAL LIABILITIES 12,002,643 10,831,203

CONTINGENCIES AND COMMITMENTS 6

TOTAL EQUITY AND LIABILITIES 22,935,876 21,612,378

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

(Unaudited)30 June

201031 December

2009(Rupees in thousand)

(Audited)


Umer ManshaChairman

S.M. JawedDirector

Ibrahim ShamsiDirector



Note

Cash and bank depositsCash and other equivalents 378 61,740Current and other accounts 1,360,177 686,915Deposits maturing within 12 months 1,529,513 1,408,449

2,890,068 2,157,104Loans

To employees 25,110 28,383

Investments 7 9,306,624 9,658,030

Other AssetsPremiums due but unpaid 8 3,840,039 3,818,046Amounts due from other insurers / reinsurers 9 756,660 716,962Salvage recoveries accrued 114,770 115,753Premium and claim reserves retained by cedants 24,235 24,235Accrued investment income 21,977 41,307Reinsurance recoveries against outstanding claims 2,142,945 1,845,562Taxation - payments less provision - 1,485Deferred commission expense 540,447 399,884Prepayments 1,997,443 1,548,922Sundry receivables 262,187 206,392

9,700,703 8,718,548

Fixed Assets - Tangible & Intangible 10

OwnedLand and buildings 198,206 174,660Furniture and fixtures 30,048 29,580Motor vehicles 186,890 190,681Machinery and equipment 338,317 373,223Computers and related accessories 53,787 49,324Intangible asset - computer software 33,046 38,269

840,294 855,737Leased

Motor vehicles 173,077 194,576

TOTAL ASSETS 22,935,876 21,612,378

(Unaudited)30 June

201031 December


(Audited)

UNCONSOLIDATED CONDENSED INTERIM PROFIT AND LOSS ACCOUNTFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)


Umer ManshaChairman

S.M. JawedDirector



Revenue accountNet premium revenue 220,995 260,044 835,313 392,542 - 1,708,894 1,798,591Net claims (170,295) (124,562) (574,882) (250,320) (460) (1,120,519) (1,128,240)Expenses (40,067) (47,447) (133,288) (72,958) - (293,760) (317,556)Net commission (35,661) (50,339) (57,012) 8,257 - (134,755) (151,106)Underwriting result (25,028) 37,696 70,131 77,521 (460) 159,860 201,689Investment income 2,208 175,203Rental income 164 123Other income 33,104 47,204

195,336 424,219General and administration expenses (138,664) (142,260)Exchange (loss) / gain - net (193) 812Finance charge on lease rentals (4,875) (850)Profit before tax 51,604 281,921Provision for taxation- Current (11,968) (103,384)- Prior - 43,957- Deferred 11,492 (81,409)Profit after tax 51,128 141,085

Earnings per share - basic and diluted 0.41 1.14

Fire andPropertyDamage

Marine, Aviationand Transport Motor Miscellaneous Treaty

Quarter ended30 June

2010


2009


-----------------(Rupees)---------------


Revenue accountNet premium revenue 580,770 490,786 1,693,453 666,077 - 3,431,086 3,578,555Net claims (373,109) (222,673) (1,131,605) (459,427) (460) (2,187,274) (2,266,964)Expenses (108,941) (91,072) (276,162) (125,444) - (601,619) (596,524)Net commission (62,069) (87,534) (113,264) 12,946 - (249,921) (314,060)Underwriting result 36,651 89,507 172,422 94,152 (460) 392,272 401,007Investment income 223,383 560,130Rental income 718 247Other income 71,013 90,712

687,386 1,052,096General and administration expenses (291,452) (289,757)Exchange gain - net 207 910Finance charge on lease rentals (10,223) (850)Profit before tax 385,918 762,399Provision for taxation- Current (98,721) (142,418)- Prior - 43,957- Deferred 11,492 (81,409)Profit after tax 298,689 582,529

Profit and loss appropriation account

Balance at the commencement of the period 8,520,042 6,458,717Profit after tax for the period 298,689 582,529Final dividend for the year ended 31 December 2009 Re 1.5 per share (2008: Re. 1 per share) (168,688) (102,235)Issue of bonus shares for the year ended 31 December 2009 @ 10 percent (2008:10 percent) (112,459) (102,235)Balance unappropriated profit at the end of the period 8,537,584 6,836,776

Earnings per share - basic and diluted 2.41 4.71




Half yearended 30 June

2010

Half Yearended 30 June

2009


-----------------(Rupees)---------------Restated

Restated


BUSINESS UNDERWRITTEN INSIDE PAKISTAN



Umer ManshaChairman

S.M. JawedDirector



Revenue accountNet premium revenue 215,053 247,643 542,479 388,152 - 1,393,327 1,548,138Net claims (170,268) (119,131) (416,892) (250,306) (460) (957,057) (1,017,466)Expenses (39,401) (46,060) (100,528) (72,468) - (258,457) (279,941)Net commission (36,513) (46,798) (39,939) 7,777 - (115,473) (122,942)Underwriting result (31,129) 35,654 (14,880) 73,155 (460) 62,340 127,789Investment income 2,208 175,203Rental income 164 123Other income 25,635 41,595

90,347 344,710

General and administration expenses (119,900) (132,638)Exchange (loss) / gain - net (193) 254Finance charge on lease rentals (4,875) (850)Profit before tax (34,621) 211,476




2010


2009


Revenue accountNet premium revenue 568,255 467,508 1,124,240 658,162 - 2,818,165 3,064,485Net claims (371,932) (217,034) (813,910) (459,392) (460) (1,862,728) (2,020,686)Expenses (107,547) (88,480) (212,772) (124,563) - (533,362) (540,409)Net commission (63,559) (78,206) (78,294) 12,021 - (208,038) (255,459)Underwriting result 25,217 83,788 19,264 86,228 (460) 214,037 247,931Investment income 223,383 560,130Rental income 718 247Other income 57,617 77,183

495,755 885,491

General and administration expenses (254,990) (276,225)Exchange gain - net 207 254Finance charge on lease rentals (10,223) (850)Profit before tax 230,749 608,670





2010


2009




BUSINESS UNDERWRITTEN OUTSIDE PAKISTAN


Umer ManshaChairman

S.M. JawedDirector



Revenue accountNet premium revenue 5,942 12,401 292,834 4,390 - 315,567 250,453Net claims (27) (5,431) (157,990) (14) - (163,462) (110,774)Expenses (666) (1,387) (32,760) (490) - (35,303) (37,615)Net commission 852 (3,541) (17,073) 480 - (19,282) (28,164)Underwriting result 6,101 2,042 85,011 4,366 - 97,520 73,900Investment income - -Rental income - -Other income 7,469 5,609

104,989 79,509

General and administration expenses (18,764) (9,622)Exchange gain - net - 558Finance charge on lease rentals - -Profit before tax 86,225 70,445




2010


2009


Revenue accountNet premium revenue 12,515 23,278 569,213 7,915 - 612,921 514,070Net claims (1,177) (5,639) (317,695) (35) - (324,546) (246,278)Expenses (1,394) (2,592) (63,390) (881) - (68,257) (56,115)Net commission 1,490 (9,328) (34,970) 925 - (41,883) (58,601)Underwriting result 11,434 5,719 153,158 7,924 - 178,235 153,076Investment income - -Rental income - -Other income 13,396 13,529

191,631 166,605

General and administration expenses (36,462) (13,532)Exchange gain - net - 656Finance charge on lease rentals - -Profit before tax 155,169 153,729





2010


2009



UNCONSOLIDATED CONDENSED INTERIM STATEMENT OFCOMPREHENSIVE INCOMEFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)

Profit for the period 298,689 582,529 51,128 141,085

Other comprehensive income:

Effect of translation of net investment in foreign branches 22,057 656 4,452 656

Total comprehensive income for the period 320,746 583,185 55,580 141,741


Umer ManshaChairman

S.M. JawedDirector





(Unaudited)Half year ended

30 June2010


30 June2009

(Unaudited)Quarter ended

30 June2010


30 June2009

UNCONSOLIDATED CONDENSED INTERIM STATEMENTOF CHANGES IN EQUITYFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)


Balance as at 31 December 2008 1,022,351 - 22,859 3,764 114,452 936,500 6,458,717 8,558,643

Total comprehensive income for thehalf year ended 30 June 2009 - - - - 656 - 582,529 583,185

Final dividend for the yearended 31 December 2008@ 10 % (Rupee 1.0/- per share) - - - - - - (102,235) (102,235)

Transferred to Reserve for Issueof Bonus shares - 102,235 - - - - (102,235) -

Issue of bonus shares for the yearended 31 December 2008 102,235 (102,235) - - - - - -

Balance as at 30 June 2009 1,124,586 - 22,859 3,764 115,108 936,500 6,836,776 9,039,593

Balance as at 31 December 2009 1,124,586 - 22,859 3,764 173,424 936,500 8,520,042 10,781,175

Total comprehensive income for thehalf year ended 30 June 2010 - - - - 22,057 - 298,689 320,746

Final dividend for the yearended 31 December 2009@ 15% (Rupees 1.5/- per share) - - - - - - (168,688) (168,688)

Transfer to Reserve for Issueof Bonus shares - 112,459 - - - - (112,459) -

Issue of bonus shares for the yearended 31 December 2009@ 10 percent (Rupee 1.0/- per share) 112,459 (112,459) - - - - - -

Balance as at 30 June 2010 1,237,045 - 22,859 3,764 195,481 936,500 8,537,584 10,933,233


Share Capital

Issued,subscribed

and paid-up

Reserve forissue of bonus

shares

Umer ManshaChairman

S.M. JawedDirector



Reserve forexceptional

losses

Investmentfluctuation

reserve

Exchangetranslation

reserve

Generalreserve

Retainedearnings

Total

Revenue ReservesCapital Reserves




UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWSFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)

Operating Cash Flows

a) Underwriting activitiesPremiums received 5,934,078 5,070,411Reinsurance premiums paid (2,186,342) (1,450,493)Claims paid (3,186,438) (3,361,625)Surrenders paid (59,718) (38,421)Reinsurance and other recoveries received 711,008 913,158Commissions paid (576,225) (467,928)Commissions received 370,086 243,716Other underwriting payments (392,818) (478,164)Net cash flow from underwriting activities 613,631 430,654

b) Other operating activitiesIncome tax (paid) / refund (73,246) 58,239General and management expenses paid (234,583) (294,693)Loans advanced (13,086) (31,081)Loan repayments received 19,894 37,558Other receipts 4,168 8,252Net cash used in other operating activities (296,853) (221,725)

Total cash flow from all operating activities 316,778 208,929

Investment activitiesProfit/ return received 65,936 55,975Return on Pakistan Investment Bonds 7,113 3,722Income received on TFCs 13,214 14,941Dividends received 261,632 174,405Income received on rent 3,085 -Payments for investments (3,304,331) (1,919,721)Proceeds from disposal of investments 3,612,124 2,231,188Fixed capital expenditure - Tangible assets (73,197) (75,090)Fixed capital expenditure - Intangible assets (533) (650)Proceeds from disposal of fixed assets 19,864 19,746

Total cash flow from investing activities 604,907 504,516

Financing activitiesDividends paid (166,143) (98,229)Payments on finance lease (22,578) (1,616)

Total cash used in financing activities (188,721) (99,845)

Net cash inflow from all activities 732,964 613,600Cash at the beginning of the period 2,152,653 1,719,655

Cash at the end of the period 2,885,617 2,333,255



2010




Umer ManshaChairman

S.M. JawedDirector



Reconciliation to Profit and Loss AccountOperating cash flows 316,778 208,929Depreciation expense (86,647) (77,060)Provision for gratuity (3,245) (2,839)Other income - bank deposits 65,494 82,868Profit on disposal of fixed assets 1,559 501Finance charge on lease rentals (10,223) (850)Rental income 718 247Increase / (Decrease) in assets other than cash 1,006,499 (134,058)(Increase) / Decrease in liabilities other than running finance (614,630) 399,739

676,303 477,477

OthersProfit on sale of investments 26,429 (35,027)Amortization expense (5,757) (5,487)Increase in unearned premium (574,449) (209,565)Amortisation of income on Government Securities - net 2,160 21,896Gain on sale of mutual fund units 58,874 89,779Return on Pakistan Investment Bonds 7,474 5,453Decrease in loans (6,808) (1,917)Income tax paid / (refund) 73,246 (58,239)(Provision) / reversal for diminution in value of investments (129,518) 286,979Dividend income 245,479 176,338Other income - TFCs 12,485 14,712

(290,385) 284,922Profit before taxation 385,918 762,399

Definition of cash

Cash comprises of cash in hand, bank balances excluding Rupees 4.451 million (2009: Rupees 4.451 million) held under lien, andother deposits which are readily convertible to cash and which are used in the cash management function on a day-to-day basis.

Cash for the purposes of the Statement of Cash Flows consists of:

Cash and other equivalent 378 4,598

Current and other accounts 1,360,177 788,242

Deposits maturing within 12 months 1,525,062 1,540,415

Total cash and cash equivalents 2,885,617 2,333,255





2010




2010








Investment activitiesProfit / return received 54,313 46,171Return on Pakistan Investment Bonds 7,113 3,722Income received on TFCs 13,214 14,941Dividends received 261,632 174,405Income received on rent 3,085 -Payments for investments (3,304,331) (1,919,721)Proceeds from disposal of investments 3,612,124 2,231,188Fixed capital expenditure - Tangible assets (73,197) (75,090)Fixed capital expenditure - Intangible assets (533) (650)Proceeds from disposal of fixed assets 19,760 19,746










2010




Umer ManshaChairman

S.M. JawedDirector




Reconciliation to Profit and Loss AccountOperating cash flows 68,031 179,275Depreciation expense (85,069) (76,094)Other income - bank deposits 53,520 71,147Profit on disposal of fixed assets 1,684 501Finance charge on lease rentals (10,223) (850)Rental income 718 247Increase / (Decrease) in assets other than cash 864,543 (171,865)(Increase) / Decrease in liabilities other than running finance (455,573) 370,669

437,631 373,030

OthersProfit on sale of investments 26,429 (35,027)Amortization expense (5,757) (5,487)Increase in unearned premium (492,803) (258,847)Amortisation of income on Government Securities - net 2,160 21,896Gain on sale of mutual fund units 58,874 89,779Profit on Pakistan Investment Bonds 7,474 5,453Decrease in loans (4,951) (1,917)Income tax paid / (refund) 73,246 (58,239)(Provision) / reversal for diminution in value of investments (129,518) 286,979Dividend, investment and other income 245,479 176,338Other Income - TFCs 12,485 14,712


Definition of cash



Cash and other equivalent 145 4,377

Current and other accounts 338,115 694,073

Deposits maturing within 12 months 1,374,835 1,001,000





2010




2010





a) Underwriting activitiesPremiums received 975,033 566,250Reinsurance premiums paid (271,585) (139,533)Claims paid (457,334) (457,945)Surrenders paid (1,168) -Reinsurance and other recoveries received 155,660 157,417Commissions paid (95,055) (51,488)Commissions received 35,846 21,273Other underwriting payments (51,131) (26,076)Net cash flow from underwriting activities 290,266 69,898

b) Other operating activitiesIncome tax (paid) / refund - -General and management expenses paid (44,924) (42,037)Loans advanced (930) (2,518)Loan repayments received 2,787 1,847Other receipts 1,548 2,464Net cash used in other operating activities (41,519) (40,244)


Investment activitiesProfit/ return received 11,623 9,804Return on Pakistan Investment Bonds - -Income received on TFCs - -Dividends received - -Payments for investments - -Proceeds from disposal of investments - -Fixed capital expenditure - Tangible assets - -Fixed capital expenditure - Intangible assets - -Proceeds from disposal of fixed assets 104 -


Financing activitiesDividends paid - -Payments on finance lease - -

Total cash flow from financing activities - -

Net cash inflow from all activities 260,474 39,458Cash at the beginning of the period 912,048 572,732

Cash at the end of the period 1,172,522 612,190





2010




Umer ManshaChairman

S.M. JawedDirector




Reconciliation to Profit and Loss AccountOperating cash flows 248,747 29,654Depreciation expense (1,578) (966)Provision for gratuity (3,245) (2,839)Other income - bank deposits 11,974 11,721Profit on disposal of fixed assets (125) -Finance charge on lease obligations - -Rental income - -Increase in assets other than cash 141,956 37,807(Increase) / Decrease in liabilities other than running finance (159,057) 29,070

238,672 104,447Others

Profit on sale of investments - -Amortization expense - -(Decrease)/ increase in unearned premium (81,646) 49,282Amortisation of income on Government Securities - net - -Gain on sale of mutual fund units - -Return on Pakistan Investment Bonds - -Increase in loans (1,857) -Income tax paid - -Gratuity paid - -(Provision) / Reversal for diminution in value of investments - -Dividend, investment and other income - -Other income-TFCs - -


Definition of cash

Cash comprises of cash in hand, bank balances excluding Rupees Nil (2009: Rupees Nil) held under lien, and other deposits whichare readily convertible to cash and which are used in the cash management function on a day-to-day basis.


Cash and other equivalent 233 221

Current and other accounts 1,022,062 94,169

Deposits maturing within 12 months 150,227 539,415

Total cash and cash equivalents 1,172,522 633,805


UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)



2010


2009



2010


2009


Umer ManshaChairman

S.M. JawedDirector



UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF PREMIUMSFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)


Class Premiumswritten

Unearned premiumreserve

Opening Closing

Premiumsearned

Reinsuranceceded

Reinsuranceexpense

Prepaid reinsurancepremium ceded

Net premiumrevenue

Opening ClosingQuarter

ended 30June 2010


Quarterended 30June 2009

Direct and facultative

Fire and property damage 1,426,771 1,562,186 1,964,759 1,024,198 1,055,064 1,129,556 1,381,417 803,203 220,995 325,793Marine, aviation and transport 312,897 58,788 75,005 296,680 45,195 7,018 15,577 36,636 260,044 293,217Motor 963,006 1,964,484 1,972,309 955,181 96,446 214,717 191,295 119,868 835,313 881,929Miscellaneous 562,581 849,363 968,193 443,751 225,367 148,714 322,872 51,209 392,542 297,535Total 3,265,255 4,434,821 4,980,266 2,719,810 1,422,072 1,500,005 1,911,161 1,010,916 1,708,894 1,798,474

Treaty

Proportional - - - - - - - - - 117

Total - - - - - - - - - 117

Grand Total 3,265,255 4,434,821 4,980,266 2,719,810 1,422,072 1,500,005 1,911,161 1,010,916 1,708,894 1,798,591



Opening Closing

Premiumsearned

Reinsuranceceded

Reinsuranceexpense


Net premiumrevenue

Opening ClosingHalf Yearended 30June 2010


Half Yearended 30June 2009


Fire and property damage 2,186,227 1,685,968 1,964,759 1,907,436 1,571,034 1,137,049 1,381,417 1,326,666 580,770 653,819Marine, aviation and transport 606,060 42,099 75,005 573,154 92,790 5,155 15,577 82,368 490,786 538,414Motor 1,977,598 1,900,021 1,972,309 1,905,310 205,744 197,408 191,295 211,857 1,693,453 1,795,723Miscellaneous 1,088,395 777,729 968,193 897,931 412,709 142,017 322,872 231,854 666,077 590,482Total 5,858,280 4,405,817 4,980,266 5,283,831 2,282,277 1,481,629 1,911,161 1,852,745 3,431,086 3,578,438

Treaty

Proportional - - - - - - - - - 117

Total - - - - - - - - - 117

Grand Total 5,858,280 4,405,817 4,980,266 5,283,831 2,282,277 1,481,629 1,911,161 1,852,745 3,431,086 3,578,555



Umer ManshaChairman

S.M. JawedDirector







Fire and property damage 1,410,187 1,518,262 1,926,686 1,001,763 1,042,116 1,098,704 1,354,110 786,710 215,053 312,458Marine, aviation and transport 298,467 57,244 72,153 283,558 43,777 6,394 14,256 35,915 247,643 268,303Motor 585,858 978,691 1,014,427 550,122 8,511 1,973 2,841 7,643 542,479 676,330Miscellaneous 552,192 836,292 950,878 437,606 220,746 141,797 313,089 49,454 388,152 290,930Total 2,846,704 3,390,489 3,964,144 2,273,049 1,315,150 1,248,868 1,684,296 879,722 1,393,327 1,548,021

Treaty

Proportional - - - - - - - - - 117

Total - - - - - - - - - 117

Grand Total 2,846,704 3,390,489 3,964,144 2,273,049 1,315,150 1,248,868 1,684,296 879,722 1,393,327 1,548,138



Opening Closing

Premiumsearned

Reinsuranceceded

Reinsuranceexpense


Net premiumrevenue


ended 30June 2010




Fire and property damage 2,152,319 1,634,259 1,926,686 1,859,892 1,547,526 1,098,221 1,354,110 1,291,637 568,255 625,040Marine, aviation and transport 574,506 46,726 72,153 549,079 89,428 6,399 14,256 81,571 467,508 490,918Motor 1,129,824 1,024,231 1,014,427 1,139,628 16,255 1,974 2,841 15,388 1,124,240 1,370,760Miscellaneous 1,070,265 766,126 950,878 885,513 403,784 136,656 313,089 227,351 658,162 577,650Total 4,926,914 3,471,342 3,964,144 4,434,112 2,056,993 1,243,250 1,684,296 1,615,947 2,818,165 3,064,368

Treaty

Proportional - - - - - - - - - 117

Total - - - - - - - - - 117

Grand Total 4,926,914 3,471,342 3,964,144 4,434,112 2,056,993 1,243,250 1,684,296 1,615,947 2,818,165 3,064,485

The annexed notes form an integral part of this unconsolidated condensed interim financial information



Opening Closing

Premiumsearned

Reinsuranceceded

Reinsuranceexpense


Net premiumrevenue





Umer ManshaChairman

S.M. JawedDirector







Fire and property damage 16,584 43,924 38,073 22,435 12,948 30,852 27,307 16,493 5,942 13,335Marine, aviation and transport 14,430 1,544 2,852 13,122 1,418 624 1,321 721 12,401 24,914Motor 377,148 985,793 957,882 405,059 87,935 212,744 188,454 112,225 292,834 205,599Miscellaneous 10,389 13,071 17,315 6,145 4,621 6,917 9,783 1,755 4,390 6,605Total 418,551 1,044,332 1,016,122 446,761 106,922 251,137 226,865 131,194 315,567 250,453

Treaty

Proportional - - - - - - - - - -

Total - - - - - - - - - -

Grand Total 418,551 1,044,332 1,016,122 446,761 106,922 251,137 226,865 131,194 315,567 250,453



Opening Closing

Premiumsearned

Reinsuranceceded

Reinsuranceexpense


Net premiumrevenue


ended 30June 2010




Fire and property damage 33,908 51,709 38,073 47,544 23,508 38,828 27,307 35,029 12,515 28,779Marine, aviation and transport 31,554 (4,627) 2,852 24,075 3,362 (1,244) 1,321 797 23,278 47,496Motor 847,774 875,790 957,882 765,682 189,489 195,434 188,454 196,469 569,213 424,963Miscellaneous 18,130 11,603 17,315 12,418 8,925 5,361 9,783 4,503 7,915 12,832Total 931,366 934,475 1,016,122 849,719 225,284 238,379 226,865 236,798 612,921 514,070

Treaty

Proportional - - - - - - - - - -

Total - - - - - - - - - -

Grand Total 931,366 934,475 1,016,122 849,719 225,284 238,379 226,865 236,798 612,921 514,070




Opening Closing

Premiumsearned

Reinsuranceceded

Reinsuranceexpense


Net premiumrevenue





Umer ManshaChairman

S.M. JawedDirector



UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CLAIMSFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)


Class

Total claimspaid

Outstanding claims

Opening Closing

Claimsexpenses

Reinsuranceand otherrecoveriesreceived

Reinsuranceand otherrecoveries

revenue

Reinsurance and otherrecoveries in respect of

outstanding claims

Net claims expense

Opening Closing Quarterended 30June 2010




Fire and property damage 543,425 934,476 1,146,840 755,789 339,914 495,201 740,781 585,494 170,295 176,646

Marine, aviation and transport 118,262 346,033 347,472 119,701 1,085 174,518 168,572 (4,861) 124,562 103,782

Motor 684,449 1,362,085 1,491,513 813,877 83,756 732,743 887,982 238,995 574,882 591,907

Miscellaneous 311,932 561,044 615,060 365,948 49,196 393,948 460,380 115,628 250,320 255,696

Total 1,658,068 3,203,638 3,600,885 2,055,315 473,951 1,796,410 2,257,715 935,256 1,120,059 1,128,031

Treaty

Proportional 460 22,962 22,962 460 - - - - 460 209

Total 460 22,962 22,962 460 - - - - 460 209

Grand Total 1,658,528 3,226,600 3,623,847 2,055,775 473,951 1,796,410 2,257,715 935,256 1,120,519 1,128,240

Class

Total claimspaid

Outstanding claims

Opening Closing

Claimsexpenses



revenue


outstanding claims

Net claims expense

Opening Closing Half Yearended 30June 2010




Fire and property damage 940,545 1,168,771 1,146,840 918,614 514,427 709,703 740,781 545,505 373,109 319,248


Motor 1,447,192 1,471,832 1,491,513 1,466,873 152,893 705,607 887,982 335,268 1,131,605 1,271,651

Miscellaneous 570,845 552,512 615,060 633,393 75,718 362,132 460,380 173,966 459,427 479,344

Total 3,185,978 3,552,941 3,600,885 3,233,922 750,708 1,961,315 2,257,715 1,047,108 2,186,814 2,256,322

Treaty

Proportional 460 22,962 22,962 460 - - - - 460 10,642

Total 460 22,962 22,962 460 - - - - 460 10,642

Grand Total 3,186,438 3,575,903 3,623,847 3,234,382 750,708 1,961,315 2,257,715 1,047,108 2,187,274 2,266,964



Umer ManshaChairman

S.M. JawedDirector






Class

Total claimspaid

Outstanding claims

Opening Closing

Claimsexpenses



revenue


outstanding claims

Net claims expense





Fire and property damage 543,286 932,351 1,144,680 755,615 339,797 493,358 738,908 585,347 170,268 175,032


Motor 446,674 555,083 529,262 420,853 13 112,823 116,771 3,961 416,892 483,862

Miscellaneous 311,909 560,140 614,162 365,931 49,177 393,835 460,283 115,625 250,306 255,558

Total 1,418,511 2,386,247 2,624,405 1,656,669 390,072 1,174,534 1,484,534 700,072 956,597 1,017,257

Treaty

Proportional 460 22,962 22,962 460 - - - - 460 209

Total 460 22,962 22,962 460 - - - - 460 209

Grand Total 1,418,971 2,409,209 2,647,367 1,657,129 390,072 1,174,534 1,484,534 700,072 957,057 1,017,466

Class

Total claimspaid

Outstanding claims

Opening Closing

Claimsexpenses



revenue


outstanding claims

Net claims expense





Fire and property damage 936,702 1,166,655 1,144,680 914,727 511,754 707,867 738,908 542,795 371,932 315,770


Motor 996,467 695,339 529,262 830,390 19 100,310 116,771 16,480 813,910 1,033,030

Miscellaneous 570,696 551,574 614,162 633,284 75,696 362,087 460,283 173,892 459,392 479,013

Total 2,728,644 2,765,337 2,624,405 2,587,712 595,047 1,354,137 1,484,534 725,444 1,862,268 2,010,044

Treaty

Proportional 460 22,962 22,962 460 - - - - 460 10,642

Total 460 22,962 22,962 460 - - - - 460 10,642

Grand Total 2,729,104 2,788,299 2,647,367 2,588,172 595,047 1,354,137 1,484,534 725,444 1,862,728 2,020,686



Umer ManshaChairman

S.M. JawedDirector






Class

Total claimspaid

Outstanding claims

Opening Closing

Claimsexpenses



revenue


outstanding claims

Net claims expense





Fire and property damage 139 2,125 2,160 174 117 1,843 1,873 147 27 1,614

Marine, aviation and transport 1,620 7,360 11,171 5,431 - - - - 5,431 977

Motor 237,775 807,002 962,251 393,024 83,743 619,920 771,211 235,034 157,990 108,045

Miscellaneous 23 904 898 17 19 113 97 3 14 138

Total 239,557 817,391 976,480 398,646 83,879 621,876 773,181 235,184 163,462 110,774

Treaty

Proportional - - - - - - - - - -

Total - - - - - - - - - -

Grand Total 239,557 817,391 976,480 398,646 83,879 621,876 773,181 235,184 163,462 110,774

Class

Total claimspaid

Outstanding claims

Opening Closing

Claimsexpenses



revenue


outstanding claims

Net claims expense





Fire and property damage 3,843 2,116 2,160 3,887 2,673 1,836 1,873 2,710 1,177 3,478

Marine, aviation and transport 2,617 8,057 11,171 5,731 92 - - 92 5,639 3,848

Motor 450,725 776,493 962,251 636,483 152,874 605,297 771,211 318,788 317,695 238,621

Miscellaneous 149 938 898 109 22 45 97 74 35 331

Total 457,334 787,604 976,480 646,210 155,661 607,178 773,181 321,664 324,546 246,278

Treaty

Proportional - - - - - - - - - -

Total - - - - - - - - - -

Grand Total 457,334 787,604 976,480 646,210 155,661 607,178 773,181 321,664 324,546 246,278



Umer ManshaChairman

S.M. JawedDirector



UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF EXPENSESFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)



Fire and property damage 167,988 223,032 265,464 125,556 40,067 165,623 89,895 75,728 67,351

Marine, aviation and transport 59,844 8,790 19,176 49,458 47,447 96,905 (881) 97,786 102,525

Motor 87,706 168,837 177,788 78,755 133,288 212,043 21,743 190,300 228,811

Miscellaneous 37,626 66,042 78,019 25,649 72,958 98,607 33,906 64,701 70,555

Total 353,164 466,701 540,447 279,418 293,760 573,178 144,663 428,515 469,242

Treaty

Proportional - - - - - - - - (580)

Total - - - - - - - - (580)

Grand Total 353,164 466,701 540,447 279,418 293,760 573,178 144,663 428,515 468,662


Class

Commissionspaid orpayable

Deferred commission

Opening Closing

Netcommission

expense

Othermanagement

expenses

Underwritingexpense

Net underwriting expense


Commissionfrom

reinsurers Quarterended 30June 2009



Marine, aviation and transport 99,990 7,197 19,176 88,011 91,072 179,083 477 178,606 179,084

Motor 182,851 144,778 177,788 149,841 276,162 426,003 36,577 389,426 453,694

Miscellaneous 88,599 44,570 78,019 55,150 125,444 180,594 68,096 112,498 123,670

Total 662,243 399,884 540,447 521,680 601,619 1,123,299 271,759 851,540 910,543

Treaty

Proportional - - - - - - - - 41

Total - - - - - - - - 41

Grand Total 662,243 399,884 540,447 521,680 601,619 1,123,299 271,759 851,540 910,584



Class


Deferred commission

Opening Closing

Netcommission

expense

Othermanagement

expenses

Underwritingexpense



Commissionfrom

reinsurers Half Yearended 30June 2009


Umer ManshaChairman

S.M. JawedDirector








Marine, aviation and transport 60,904 6,139 18,675 48,368 46,060 94,428 1,570 92,858 94,247

Motor 47,762 70,327 77,764 40,325 100,528 140,853 386 140,467 174,985

Miscellaneous 37,122 65,432 77,252 25,302 72,468 97,770 33,079 64,691 69,806

Total 313,326 359,612 436,090 236,848 258,457 495,305 121,375 373,930 403,463

Treaty

Proportional - - - - - - - - (580)

Total - - - - - - - - (580)

Grand Total 313,326 359,612 436,090 236,848 258,457 495,305 121,375 373,930 402,883


Class


Deferred commission

Opening Closing

Netcommission

expense

Othermanagement

expenses

Underwritingexpense



Commissionfrom




Marine, aviation and transport 95,704 4,052 18,675 81,081 88,480 169,561 2,875 166,686 164,552

Motor 92,879 63,952 77,764 79,067 212,772 291,839 773 291,066 359,484

Miscellaneous 87,236 44,458 77,252 54,442 124,563 179,005 66,463 112,542 122,737

Total 562,174 311,101 436,090 437,185 533,362 970,547 229,147 741,400 795,826

Treaty

Proportional - - - - - - - - 41

Total - - - - - - - - 41

Grand Total 562,174 311,101 436,090 437,185 533,362 970,547 229,147 741,400 795,867



Class


Deferred commission

Opening Closing

Netcommission

expense

Othermanagement

expenses

Underwritingexpense



Commissionfrom



Umer ManshaChairman

S.M. JawedDirector







Fire and property damage 450 5,318 3,065 2,703 666 3,369 3,555 (186) 2,926

Marine, aviation and transport (1,060) 2,651 501 1,090 1,387 2,477 (2,451) 4,928 8,278

Motor 39,944 98,510 100,024 38,430 32,760 71,190 21,357 49,833 53,826

Miscellaneous 504 610 767 347 490 837 827 10 749

Total 39,838 107,089 104,357 42,570 35,303 77,873 23,288 54,585 65,779

Treaty

Proportional - - - - - - - - -

Total - - - - - - - - -

Grand Total 39,838 107,089 104,357 42,570 35,303 77,873 23,288 54,585 65,779


Class


Deferred commission

Opening Closing

Netcommission

expense

Othermanagement

expenses

Underwritingexpense



Commissionfrom



Fire and property damage 4,448 4,700 3,065 6,083 1,394 7,477 7,573 (96) 5,042

Marine, aviation and transport 4,286 3,145 501 6,930 2,592 9,522 (2,398) 11,920 14,532

Motor 89,972 80,826 100,024 70,774 63,390 134,164 35,804 98,360 94,210

Miscellaneous 1,363 112 767 708 881 1,589 1,633 (44) 933

Total 100,069 88,783 104,357 84,495 68,257 152,752 42,612 110,140 114,717

Treaty

Proportional - - - - - - - - -

Total - - - - - - - - -

Grand Total 100,069 88,783 104,357 84,495 68,257 152,752 42,612 110,140 114,717



Class


Deferred commission

Opening Closing

Netcommission

expense

Othermanagement

expenses

Underwritingexpense



Commissionfrom



Umer ManshaChairman

S.M. JawedDirector



UNCONSOLIDATED CONDENSED INTERIM STATEMENT OFINVESTMENT INCOMEFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)

Income from non-trading investments

Available-for-sale

Return on fixed income securities - 9,532 2,160 21,896Return on Term Finance Certificates 6,121 7,785 12,485 14,712Return on Pakistan Investments Bonds 3,872 4,281 7,474 5,390

Dividend income- associated undertakings 58,159 52,850 132,467 101,092

- others 16,993 17,907 113,012 75,309 75,152 70,757 245,479 176,401 85,145 92,355 267,598 218,399

Gain on sale of ‘available-for-sale’ investments - associated undertakings 18,587 26,434 58,874 88,124 - others 23,372 128 26,429 (33,372)

41,959 26,562 85,303 54,752 127,104 118,917 352,901 273,151

(Provision) / Reversal for impairment in value of'available-for-sale' investment (124,896) 56,286 (129,518) 286,979

Net investment income 2,208 175,203 223,383 560,130









1. THE COMPANY AND ITS OPERATIONS

Adamjee Insurance Company Limited (the company) is a public limited company incorporated in Pakistan on28 September 1960 under the Companies Act, 1913 (now the Companies Ordinance, 1984). The company islisted on all the stock exchanges in Pakistan and is engaged in the non-life insurance business.

The registered office of the Company is situated at Adamjee House, I.I. Chundrigar Road, Karachi.

1.1 The Company also operates branches in the United Arab Emirates (UAE), the Kingdom of Saudi Arabia (KSA)and the Export Processing Zone (EPZ). The branch in the KSA has closed down its operations and is in “run-off”status with effect from 01 October 2003.

2. BASIS OF PREPARATION

a) Statement of Compliance

This unconsolidated condensed interim financial report of the company for the six months period ended 30June 2010 has been prepared in accordance with the requirements of the International Accounting Standard34 - Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance, 1984,the Insurance Ordinance, 2000 and SEC (Insurance) Rules, 2002. In case where requirements differ, the provisionsor directives of Companies Ordinance, 1984, Insurance Ordinance, 2000 and SEC (Insurance) Rules, 2002 shallprevail.

The SECP has allowed insurance companies to defer the application of International Accounting Standard - 39(IAS - 39) 'Financial Instruments: Recognition and Measurement' in respect of "Investment available-for-sale"until suitable amendments have been made in the law. Accordingly, the requirements of IAS - 39, to the extentallowed by SECP, have not been c onsidered in the pr eparation of this unc onsolidated condensed financialinformation.

b) Basis of presentation

These unconsolidated condensed interim financial information represents separate unconsolidated condensedinterim financial information of Adamjee Insurance Company Limited, prepared in accordance with the formatprescribed by Insurance Division of SECP in its Circular No. 7 of 2003 dated 27 August 2003. The consolidatedcondensed interim financial information of the group is being issued separately.

3. BASIS OF MEASUREMENT

This unconsolidated condensed interim financial information has been pr epared under the hist orical costconvention except that obligations under certain employee benefits are measured at present value.

4. ACCOUNTING POLICIES AND COMPUTATION METHODS

The accounting policies and the methods of computation adopted in the preparation of this unconsolidatedcondensed interim financial information are the same as those applied in the preparation of the unconsolidatedfinancial statements for the year ended 31 December 2009.

5. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Judgments and estimates made by the management in the pr eparation of this unc onsolidated condensedinterim financial inf ormation are the same as those ap plied to the pr eceding annual published financialstatements of the company for the year ended 31 December 2009.

UNCONSOLIDATED CONDENSED INTERIM NOTES TO THEFINANCIAL INFORMATIONFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)



6. CONTINGENCIES AND COMMITMENTS

6.1 Contingencies

The income tax assessments of the company have been finalized up to and including the tax year 2009. However,the company has filed appeals in respect of certain assessment years mainly on account of following:

i) The Deputy Commissioner of Income Tax (DCIT) has finalized assessments for the assessment year 1999-2000 by taxing capital gains at the full rate of 33%. The aggregate tax liability assessed by the DCIT amountedto Rupees 48.205 million against which the company has made a total provision of Rupees 44.141 millionresulting in a shortfall of Rupees 4.064 million. The company filed appeals with the Commissioner of IncomeTax (Appeals) and Income Tax Appellate Tribunal (ITAT) which were decided against the company. Consequentlythe company has filed an ap peal before the Honorable High Court of Sindh and the petition is fix ed forregular hearing;

ii) The Additional Commissioner / Taxation Officer has reopened assessments for the assessment years 2000-2001 and 2001-2002 by taxing bonus shares received by the company during the above mentioned periodsresulting in an additional tax liability of Rupees 14.907 million. An appeal was filed before the Commissionerof Income Tax (Appeals) who cancelled the amended order passed by the Additional Commissioner andallowed relief to the company but the Tax Department had filed an appeal before the ITAT against the orderof the Additional Commissioner, which has been decided in fa vour of the company. However, during theperiod the company received a notice from additional commisioner for reassessment of the case. However,the company has filed a constitutional petition in Sindh High Court against such order.

iii) While finalizing the assessment for the assessment year 2002-2003, DCIT has reduced the business loss forthe year by Rupees 88.180 million by adjusting the dividend income against this loss. The company maintainsthat it is en titled to carry the gross loss forward for adjustment against the futur e taxable income anddividend income for the year should be taxed separately at reduced rate. The appeals of the company inthis respect have been rejected by the Commissioner of Income Tax (Appeals), the ITAT and the Sindh HighCourt. The company has no w filed a r eference ap plication with the Supr eme Court of P akistan. Themanagement is c onfident that the ma tter will ev entually be decided in fa vor of the c ompany and hasconsequently not made any provision against the additional tax liabilit y of Rupees 26.455 million whichmay arise in this respect.

iv) The Tax Authorities have also amended the assessments for tax years 2003 to 2007 on the ground that thecompany has not apportioned management and general administration expenses against capital gain anddividend income. The company has filed c onstitution petition in the H igh Court of Sindh against theamendment in the assessment order. The company may be liable to pay Rupees 5.881 million in the eventof decision against the c ompany, out of which Rupees 2.727 million has been pr ovided by the companyresulting in a shortfall of Rupees 3.154 million.

v) The Taxation Officer has passed an order in the tax year 2005 and 2006 under section 221 of the Income TaxOrdinance, 2001 (the Ordinance) levying minimum tax liability aggregating to Rupees 38.358 million. Anappeal had been filed bef ore the Commissioner of I ncome Tax (Appeals) who upheld the or der of theTaxation Officer. The Company has filed an appeal before ITAT which is pending to be heard.

vi) The Taxation Officer has passed an order under section 161/205 of the Ordinance in Tax year 2007 creatinga demand of Rupees 1.263 million. The company filed an appeal before the Commissioner of Income Tax(Appeals) which has been decided against the company. The company is filing an appeal before the IncomeTax Appellate Tribunal.






vii) During the period the company received a notice from additional commissioner Inland Revenue pertainingto the assessment of tax year 2008. Among others, the additional commissioner raised issues pertaining toavoidance of tax on capital gains on listed securities. However, the company filed a consitutional petitionin Sindh High Court against such order and the court has granted stay in this regard.

Pending resolution of the above-mentioned appeals filed by the company, no provision has been made inthis unconsolidated condensed interim financial information for the aggregate amount of Rupees 88.201million (31 December 2009: 88.201 million) as the management is confident that the eventual outcome ofthe above matters will be in favor of the company.

6.2 Commitments

There were no capital or other commitments as at 30 June 2010 (31 December 2009: Nil).

7. INVESTMENTS

In related partiesAvailable-for-sale

Marketable securities 6,399,751 6,029,982

Investment in Subsidiary - Adamjee LifeAssurance Company Limited 294,065 294,065

6,693,816 6,324,047 Others

Available-for-saleMarketable securities 3,281,273 3,371,193 Less: Provision for impairment in value of investments (668,465) (541,300)

2,612,808 2,829,893 Fixed income investments - 504,090

2,612,808 3,333,983 9,306,624 9,658,030

At 30 June 2010, the fair value of available-for-sale securities was Rupees 9,712.005 million(31 December 2009: Rupees 10,151.908 million).

7.1 Reconciliation of provision for impairment in value of investments

Opening provision 541,300 2,414,501 Charge for the period 129,518 (1,873,201)Provision written off during the period (2,353) - Closing provision 668,465 541,300

8. PREMIUMS DUE BUT UNPAID - Unsecured

Considered good 3,840,039 3,818,046 Considered doubtful 121,670 119,530

3,961,709 3,937,576 Less: Provision for doubtful balances (121,670) (119,530)

3,840,039 3,818,046

(Unaudited)30 June

2010

(Audited)31 December





8.1 Reconciliation of provision for doubtful balances

Opening provision 119,530 46,793 Exchange loss 48 90 Charge for the period 7,500 90,864 Written off during the period (5,408) (18,217)Closing provision 121,670 119,530

9. AMOUNTS DUE FROM OTHER INSURERS/ REINSURERS - Unsecured

Considered good 756,660 716,962Considered doubtful 30,000 30,000

786,660 746,962Less: Provision for doubtful balances (30,000) (30,000)

756,660 716,9629.1 Reconciliation of provision for doubtful balance

Opening provision 30,000 61,396Charge for the period - 50,390Written off during the period - (81,786)Closing provision 30,000 30,000

(Unaudited)30 June

2010



(Unaudited)30 June

2010

(Unaudited)30 June


10. FIXED ASSETS

10.1 The following capital expenditure was incurred during the period:

OwnedBuilding 26,310 -Furniture and fixtures 3,115 4,200Motor vehicles 21,832 23,905Machinery and equipment 9,215 44,358Computer and related accessories 12,725 2,627

73,197 75,090

Intangible asset - computer software 533 650LeasedMotor vehicles - 42,781

73,730 118,521




10.2 The following are the written down values of fixed assets disposed of during the period:

OwnedFurniture and fixtures 352 435Motor vehicles 10,636 15,327Machinery and equipment 289 2,821Computer and related accessories 49 662LeasedMotor vehicles 6,979 -

18,305 19,245

11. TRANSACTIONS WITH RELATED PARTIES

The company has related party relationships with its subsidiary company, accosiates, employee benefit plans,key management personnel and other parties. Transactions are entered into with such related parties for theissuance of policies to and disbursements of claims incurred by them and payment of rentals for the use ofpremises rented from them. There are no transactions with key management personnel other than their termsof employment.

Investment in related parties have been disclosed in note 7 to this interim financial information. Other transactionswith related parties are summarised as follows:

(Unaudited)30 June

2010

(Unaudited)30 June

2009


Premium underwritten 590,509 491,486 Premium received 520,358 530,939 Premium ceded 541 11,836 Claims paid 248,939 313,417 Rent paid 5,289 4,508 Dividends received 132,467 101,110 Dividend paid 60,126 36,155 Remuneration of directors and key management personnel 38,883 33,291

Bonus shares received 2,114,852 1,922,593 Bonus shares issued 4,008,442 -

Following balances are due (to) / from staff retirement benefit funds:

Number of shares

(Unaudited)30 June

2010

(Unaudited)30 June





Receivable from Staff Gratuity Fund 65,282 77,210 Receivable from / (to) Employees Provident Fund 1,690 (112)

During the period an amount of Rupees 10.048 million (30 June 2009: 10.446 million) has been charged to profitand loss account in respect of the companies contributions to the Employees Provident Fund.

12. NON-ADJUSTING EVENTS AFTER THE BALANCE SHEET DATE

The Board of Directors of the c ompany in their meeting held on 25 A ugust 2010 proposed an interim cashdividend for the half year ended 30 June 2010 @ 10% Rupee 1.00/- share (2009: @ 15% Rupee 1.50/- share). Thisunconsolidated condensed interim financial information for the half year ended 30 June 2010 do not includethe effect of this appropriation which will be accounted for in the unconsolidated financial statements for theyear ending 31 December 2010.

Capital expenditure

(Unaudited)30 June

2010



73,730 138,902

OTHER INFORMATION

Segment assets 4,111,270 3,618,471 679,281 688,623 2,818,941 2,707,357 1,720,765 1,387,620 - - - - 9,330,257 8,402,071

Unallocated assets - - - - - - - - - - 13,605,619 13,210,307 13,605,619 13,210,307

Total assets 4,111,270 3,618,471 679,281 688,623 2,818,941 2,707,357 1,720,765 1,387,620 - - 13,605,619 13,210,307 22,935,876 21,612,378

Segment liabilities 3,760,728 3,351,127 544,594 514,526 3,894,927 3,789,672 1,881,541 1,571,735 22,962 22,962 - - 10,104,752 9,250,022

Unallocated liabilities - - - - - - - - - - 1,897,891 1,581,181 1,897,891 1,581,181

Total liabilities 3,760,728 3,351,127 544,594 514,526 3,894,927 3,789,672 1,881,541 1,571,735 22,962 22,962 1,897,891 1,581,181 12,002,643 10,831,203


Marine, Aviationand Transport

Fire and PropertyDamage

TotalUnallocated

Corporate Assets/Liabilities

TreatyMiscellaneousMotor

30 June2010

31 December2009

30 June2010

31 December2009

30 June2010

31 December2009

30 June2010

31 December2009

30 June2010

31 December2009

30 June2010

31 December2009

30 June2010

31 December2009

13. SEGMENT REPORTING

Class of business wise r evenue and results have been disclosed in the pr ofit and loss ac count prepared inaccordance with the requirements of the Insurance Ordinance, 2000 and the SEC (Insurance) Rules, 2002. Thefollowing is a schedule of class of business wise assets and liabilities:




14. AUTHORISATION FOR ISSUE

This unconsolidated condensed interim financial information has been approved and authorised for issue on25 August 2010 by the Board of Directors of the company.

15. CORRESPONDING FIGURES

Corresponding figures have been rearranged and reclassified, wherever necessary, for the purpose of comparison.However no significant reclassification has been made during the period.

16. GENERAL

Figures have been rounded off to the nearest thousand.

Umer ManshaChairman

S.M. JawedDirector





On behalf of the B oard, I am pleased t o present the consolidated financial statements of Adamjee Insurance Company Limitedand its subsidiary, Adamjee Life Assurance Company Limited for the half year ended 30 June 2010.

The following appropriation of profit has been recommended by Board of Directors:

Profit Before Tax 406,028Taxation (90,320)Profit After Tax 315,708Profit attributable to minority interest (4,592)Profit attributable to ordinary share holders 311,116Unappropriated profit brought forward 8,522,098 Profit available for appropriation 8,833,214

AppropriationFinal Dividend for the year ended 31 December 2009 (168,688)Reserve for issue of bonus shares for the year ended 31 December 2009 (112,459)Profit after appropriation 8,552,067

Earnings Per ShareThe half year consolidated financial statements reflect Rs. 2.51 (30 June 2009; Rs. 4.76) earning per share for the period under review.

For the Half year ended 30 June 2010


On behalf of the Board of Directors

Karachi: 25 August 2010


CONSOLIDATED CONDENSED INTERIM BALANCE SHEETAS AT 30 JUNE 2010 (Unaudited)


(Unaudited)Note30 June

201031 December


(Audited)


Share capital and reservesAuthorised share capital 1,500,000 1,500,000

Paid-up share capital 1,237,045 1,124,586

Retained earnings 8,552,067 8,522,098Reserves 1,079,536 1,104,707

9,631,603 9,626,805

Equity attributable to equity holders of the parent 10,868,648 10,751,391Minority interest 182,181 216,230Total equity 11,050,829 10,967,621

Balance of statutory funds 45,166 11,499

Underwriting provisionsProvision for outstanding claims (including IBNR) 3,626,956 3,584,772Provision for unearned premium 4,980,266 4,405,817Commission income unearned 326,766 228,439Total underwriting provisions 8,933,988 8,219,028

Deferred liabilities

Deferred taxation 64,425 74,270Staff retirement benefits 18,325 14,298

Creditors and AccrualsPremiums received in advance 131,825 91,169Amounts due to other insurers / reinsurers 1,044,651 960,748Accrued expenses 138,954 156,626Taxation - provision less payments 23,597 5,455Other creditors and accruals 1,521,271 1,188,025

2,860,298 2,402,023Borrowings

Liabilities against assets subject to finance lease 132,494 148,911

Other liabilities

Unclaimed dividends 28,510 25,965TOTAL LIABILITIES 12,038,040 10,884,495

CONTINGENCIES AND COMMITMENTS 6

TOTAL EQUITY AND LIABILITIES 23,134,035 21,863,615

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


Umer ManshaChairman

S.M. JawedDirector




(Unaudited)Note30 June

201031 December,


(Audited)

Cash and bank depositsCash and other equivalents 1,157 61,796Current and other accounts 1,373,807 702,913Deposits maturing within 12 months 1,529,513 1,408,449

2,904,477 2,173,158Loans

To employees 25,110 28,383

Investments 7 9,411,932 9,815,444

Current assets - othersPremiums due but unpaid 8 3,844,538 3,841,755Amounts due from other insurers/ reinsurers 9 759,267 716,962Salvage recoveries accrued 114,770 115,753Premium and claim reserves retained by cedants 24,235 24,235Accrued investment income 28,075 47,304Reinsurance recoveries against outstanding claims 2,142,945 1,845,562Deferred commission expense 540,447 399,884Prepayments 2,003,488 1,555,207Sundry receivables 273,797 200,478

9,731,562 8,747,140

Fixed Assets - Tangible & Intangible 10

OwnedLand and buildings 198,206 174,660Furniture and fixtures 38,690 38,843Motor vehicles 186,890 200,253Capital work-in-progress - 22,575Machinery and equipment 340,582 375,731Computers and related accessories 63,033 54,583Intangible asset - computer software 53,026 38,269

880,427 904,914Leased

Motor vehicles 180,527 194,576

TOTAL ASSETS 23,134,035 21,863,615

CONSOLIDATED CONDENSED INTERIM PROFIT AND LOSS ACCOUNTFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)


Umer ManshaChairman

S.M. JawedDirector




R e v e n u e a c c o u n tN e t p r e m i u m r e v e n u e 5 8 0 , 7 7 0 4 9 0 , 7 8 6 1 , 6 9 3 , 4 5 3 6 6 6 , 0 7 7 - 1 6 , 3 1 8 2 3 , 8 4 9 1 8 7 3 , 4 7 1 , 4 4 0 3 , 5 7 9 , 6 0 1N e t c l a i m s ( 3 7 3 , 1 0 9 ) ( 2 2 2 , 6 7 3 ) ( 1 , 1 3 1 , 6 0 5 ) ( 4 5 9 , 4 2 7 ) ( 4 6 0 ) ( 5 , 1 3 8 ) - - ( 2 , 1 9 2 , 4 1 2 ) ( 2 , 2 6 6 , 9 6 4 )E x p e n s e s ( 1 0 8 , 9 4 1 ) ( 9 1 , 0 7 2 ) ( 2 7 6 , 1 6 2 ) ( 1 2 5 , 4 4 4 ) - ( 5 6 , 2 1 9 ) ( 7 , 4 1 6 ) ( 1 , 7 3 8 ) ( 6 6 6 , 9 9 2 ) ( 6 1 0 , 4 9 0 )N e t c o m m i s s i o n ( 6 2 , 0 6 9 ) ( 8 7 , 5 3 4 ) ( 1 1 3 , 2 6 4 ) 1 2 , 9 4 6 - ( 8 , 6 3 4 ) ( 1 4 , 2 8 8 ) ( 7 4 ) ( 2 7 2 , 9 1 7 ) ( 3 1 4 , 1 4 4 )N e t I n v e s t m e n t i n c o m e - s t a t u t o r y f u n d - - - - - 9 3 4 1 6 2 9 5 2 -A d d : P o l i c y h o l d e r ' s l i a b i l i t i e s a t b e g i n n i n g o f t h e y e a r - - - - - 1 1 , 4 9 8 - 1 1 1 , 4 9 9 -L e s s : P o l i c y h o l d e r ' s l i a b i l i t i e s a t e n d o f t h e y e a r - - - - - ( 9 , 2 1 7 ) ( 1 0 , 8 0 1 ) ( 1 3 9 ) ( 2 0 , 1 5 7 ) -C a p i t a l c o n t r i b u t i o n f r o m s h a r e h o l d e r ' s f u n d - - - - - 7 5 , 4 5 8 8 , 6 5 0 1 , 7 6 1 8 5 , 8 6 9 1 3 , 0 0 3S u r p l u s / d e f i c i t o f p o l i c y h o l d e r f u n d s - - - - - ( 2 5 , 0 0 0 ) ( 1 0 ) - ( 2 5 , 0 1 0 ) -U n d e r w r i t i n g r e s u l t 3 6 , 6 5 1 8 9 , 5 0 7 1 7 2 , 4 2 2 9 4 , 1 5 2 ( 4 6 0 ) - - - 3 9 2 , 2 7 2 4 0 1 , 0 0 6

I n v e s t m e n t i n c o m e - o t h e r 2 4 1 , 8 1 1 6 0 5 , 8 2 7R e n t a l i n c o m e 7 1 8 2 4 7O t h e r i n c o m e 7 1 , 2 2 1 9 0 , 7 1 2

7 0 6 , 0 2 2 1 , 0 9 7 , 7 9 2G e n e r a l a n d a d m i n i s t r a t i o n e x p e n s e s ( 2 9 6 , 7 9 1 ) ( 3 2 4 , 0 5 5 )E x c h a n g e g a i n 2 0 7 9 1 0F i n a n c e c h a r g e o n l e a s e l i a b i l i t i e s ( 1 0 , 2 2 3 ) ( 8 5 0 )S h a r e o f p r o f i t o f a s s o c i a t e d c o m p a n i e s 6 , 8 1 3 -P r o f i t b e f o r e t a x 4 0 6 , 0 2 8 7 7 3 , 7 9 7P r o v i s i o n f o r t a x a t i o n ( 9 0 , 3 2 0 ) ( 1 7 9 , 8 7 0 )P r o f i t a f t e r t a x

3 1 5 , 7 0 8 5 9 3 , 9 2 7P r o f i t a t t r i b u t a b l e t o :

E q u i t y h o l d e r s o f t h e p a r e n t 3 1 1 , 1 1 6 5 8 9 , 1 4 2M i n o r i t y i n t e r e s t 4 , 5 9 2 4 , 7 8 5P r o f i t a n d l o s s a p p r o p r i a t i o n a c c o u n tB a l a n c e a t t h e c o m m e n c e m e n t o f t h e y e a r 8 , 5 2 2 , 0 9 8 6 , 4 5 3 , 8 7 8P r o f i t a f t e r t a x f o r t h e p e r i o d 3 1 1 , 1 1 6 5 8 9 , 1 4 2

F i n a l d i v i d e n d f o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 0 9 @ 1 5 % ( R s . 1 . 5 / - p e r s h a r e ) [ 2 0 0 8 : @ 1 0 % ( R e . 1 . 0 / - p e r s h a r e ) ( 1 6 8 , 6 8 8 ) ( 1 0 2 , 2 3 5 )

R e s e r v e f o r i s s u e o f b o n u s s h a r e s ( 1 1 2 , 4 5 9 ) ( 1 0 2 , 2 3 5 )

B a l a n c e u n a p p r o p r i a t e d p r o f i t a t t h e e n d o f t h e p e r i o d 8 , 5 5 2 , 0 6 7 6 , 8 3 8 , 5 5 0 R e s t a t e d

R u p e e s R u p e e sE a r n i n g s p e r s h a r e - b a s i c a n d d i l u t e d 2 . 5 1 4 . 7 6

T h e a n n e x e d n o t e s f o r m a n i n t e g r a l p a r t o f t h i s c o n d e n s e d i n t e r i m c o n s o l i d a t e d f i n a n c i a l i n f o r m a t i o n .

General Insurance


Marine,Aviation

andTransport

Motor Miscellaneous Treaty

Life Insurance

ConventionalBusiness

Accidentand Health

Business

Total

Quarterended

30 June,2010

Quarterended

30 June,2009


Non-unitizedInvestment

LinkedBusiness

R e v e n u e a c c o u n tN e t p r e m i u m r e v e n u e 2 2 0 , 9 9 5 2 6 0 , 0 4 4 8 3 5 , 3 1 3 3 9 2 , 5 4 2 - 1 0 , 0 9 2 2 3 , 8 4 9 1 0 5 1 , 7 4 2 , 9 4 0 1 , 7 9 3 , 3 2 9N e t c l a i m s ( 1 7 0 , 2 9 5 ) ( 1 2 4 , 5 6 2 ) ( 5 7 4 , 8 8 2 ) ( 2 5 0 , 3 2 0 ) ( 4 6 0 ) ( 3 1 3 ) - - ( 1 , 1 2 0 , 8 3 2 ) ( 1 , 1 2 8 , 2 4 0 )E x p e n s e s ( 4 0 , 0 6 7 ) ( 4 7 , 4 4 7 ) ( 1 3 3 , 2 8 8 ) ( 7 2 , 9 5 8 ) - ( 2 9 , 2 9 4 ) ( 7 , 4 1 6 ) ( 1 2 9 ) ( 3 3 0 , 5 9 9 ) ( 3 3 1 , 5 2 2 )N e t c o m m i s s i o n ( 3 5 , 6 6 1 ) ( 5 0 , 3 3 9 ) ( 5 7 , 0 1 2 ) 8 , 2 5 7 - ( 3 , 7 1 7 ) ( 1 4 , 2 8 8 ) ( 3 4 ) ( 1 5 2 , 7 9 4 ) ( 1 5 1 , 1 8 9 )N e t I n v e s t m e n t i n c o m e - s t a t u t o r y f u n d - - - - - 6 4 5 1 6 2 6 6 3 -A d d : P o l i c y h o l d e r ' s l i a b i l i t i e s a t b e g i n n i n g o f t h e y e a r - - - - - - - - - -L e s s : P o l i c y h o l d e r ' s l i a b i l i t i e s a t e n d o f t h e y e a r - - - - - 2 , 2 8 1 ( 1 0 , 8 0 1 ) ( 1 3 8 ) ( 8 , 6 5 8 ) -C a p i t a l c o n t r i b u t i o n f r o m s h a r e h o l d e r ' s f u n d - - - - - 4 5 , 3 0 6 8 , 6 5 0 1 9 4 5 4 , 1 5 0 1 3 , 0 0 3S u r p l u s / d e f i c i t o f p o l i c y h o l d e r f u n d s - - - - - ( 2 5 , 0 0 0 ) ( 1 0 ) - ( 2 5 , 0 1 0 ) -U n d e r w r i t i n g r e s u l t ( 2 5 , 0 2 8 ) 3 7 , 6 9 6 7 0 , 1 3 1 7 7 , 5 2 1 ( 4 6 0 ) - - - 1 5 9 , 8 6 0 1 9 5 , 3 8 1

I n v e s t m e n t i n c o m e - o t h e r 8 , 6 5 4 2 0 7 , 0 6 6R e n t a l i n c o m e 1 6 4 1 2 3O t h e r i n c o m e 3 3 , 3 1 2 4 7 , 2 0 4

2 0 1 , 9 9 0 4 4 9 , 7 7 4G e n e r a l a n d a d m i n i s t r a t i o n e x p e n s e s ( 1 4 1 , 3 3 3 ) ( 1 5 6 , 7 2 5 )E x c h a n g e ( l o s s ) / g a i n ( 1 9 3 ) 8 1 2F i n a n c e c h a r g e o n l e a s e l i a b i l i t i e s ( 4 , 8 7 5 ) ( 8 5 0 )S h a r e o f p r o f i t o f a s s o c i a t e d c o m p a n i e s 6 , 8 1 3 -P r o f i t b e f o r e t a x 6 2 , 4 0 2 2 9 3 , 0 1 1P r o v i s i o n f o r t a x a t i o n ( 1 , 8 8 0 ) ( 1 4 0 , 8 3 6 )P r o f i t a f t e r t a x 6 0 , 5 2 2 1 5 2 , 1 7 5P r o f i t a t t r i b u t a b l e t o :E q u i t y h o l d e r s o f t h e p a r e n t 5 5 , 9 3 0 1 4 4 , 6 8 9M i n o r i t y i n t e r e s t 4 , 5 9 2 7 , 4 8 5

R e s t a t e dR u p e e s R u p e e s

E a r n i n g s p e r s h a r e - b a s i c a n d d i l u t e d 0 . 4 5 1 . 1 7

General Insurance


Marine,Aviation

andTransport

Motor Miscellaneous Treaty

Life Insurance

ConventionalBusiness

Accidentand Health

Business

Total

Half yearended

30 June,2010

Half yearended

30 June,2009


Non-unitizedInvestment

LinkedBusiness


Profit for the period 315,708 593,927 60,522 152,175

Other comprehensive income:

Effect of translation of net investment in foreign branches 22,057 656 4,452 656

Capital contribution to statutory funds (85,869) (13,003) (54,150) (13,003)

Total comprehensive income for the period 251,896 581,580 10,824 139,828

Comprehensive income attributeable to:

Equity holders of the parent 285,945 582,646 30,600 138,194Minority interest (34,049) (1,066) (19,776) 1,634


Umer ManshaChairman

S.M. JawedDirector




CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOMEFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)



30 June2010


30 June2009


30 June2010


30 June2009


Umer ManshaChairman

S.M. JawedDirector




CONSOLIDATED CONDENSED INTERIM STATEMENT OFCHANGES IN EQUITYFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)

Balance as at 31 December 2008 1,022,351 - 22,859 115,108 - 3,764 936,500 6,453,878 8,554,460 236,868 8,791,328

Total comprehensive income for thehalf year ended 30 June 2009 - - - 656 (7,152) - - 589,142 582,646 (1,066) 581,580

Final dividend for the year ended 31 December 2008@ 10 % (Rupee 1.0/- per share) - - - - - - - (102,235) (102,235) - (102,235)

Transferred to Reserve for Issue of Bonus shares - 102,235 - - - - - (102,235) - - -

Issue of bonus shares for theyear ended 31 December 2008 102,235 (102,235) - - - - - - - - -

Balance as at 30 June 2009 1,124,586 - 22,859 115,764 (7,152) 3,764 936,500 6,838,550 9,034,871 235,802 9,270,673

Balance as at 31 December 2009 1,124,586 - 22,859 173,424 (31,840) 3,764 936,500 8,522,098 10,751,391 216,230 10,967,621

Total comprehensive income for thehalf year ended 30 June 2010 - - - 22,057 (47,228) - - 311,116 285,945 (34,049) 251,896

Final dividend for the yearended 31 December 2009 @ 15% (Rupees 1.5/- per share) - - - - - - - (168,688) (168,688) - (168,688)

Transfer to Reserve for Issue of Bonus shares - 112,459 - - - - - (112,459) - - -

Issue of bonus shares for the yearended 31 December 2009 @ 10 percent (Rupee 1.0/- per share) 112,459 (112,459) - - - - - - - - -

Balance as at 30 June 2010 1,237,045 - 22,859 195,481 (79,068) 3,764 936,500 8,552,067 10,868,648 182,181 11,050,829

Share capital Capital reserves Revenue reserves

Equityattributable

to equityholders ofthe parent

Minorityinterest

TotalIssued,

subscribedand paid-up

Reserve forissue ofbonusshares

Reserve forexceptional

losses

Exchangetranslation

reserve

Capitalcontributionto statutory

funds

Investmentfluctuation

reserve

Generalreserve

Retainedearnings



CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWSFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)





Investment activitiesProfit / return received 33,087 65,126Return on Pakistan Investment Bonds 7,113 3,722Income received on TFCs 13,214 14,941Dividends received 262,210 174,405Income received on rent 3,085 -Payments for investments (3,601,241) (2,168,186)Proceeds from disposal of investments 4,019,236 2,231,188Fixed capital expenditure - Tangible assets (79,808) (104,750)Fixed capital expenditure - Intangible assets (533) (650)Proceeds from disposal of fixed assets 21,024 19,746







Half Year ended30 June 2010




Umer ManshaChairman

S.M. JawedDirector




Reconciliation to Profit and Loss AccountOperating cash flows 242,652 122,331Depreciation expense (90,644) (77,060)Provision for gratuity (3,245) (2,839)Other income - bank deposits 65,494 82,868Profit on disposal of fixed assets 1,438 501Finance charge on lease rentals (10,223) (850)Share of profit of associated companies 6,813 -Rental income 718 247Increase / (Decrease) in assets other than cash 990,433 (79,097)(Increase) / Decrease in liabilities other than running finance (612,007) 397,078

591,429 443,179Others

Profit on sale of investments 30,798 (35,027)Amortization expense (5,757) (5,487)Capital contribution from shareholders' fund 85,869 -Increase in unearned premium (574,449) (209,565)Amortisation of income on Government Securities - net 2,160 21,896Gain on sale of mutual fund units 58,873 89,779Return on Pakistan Investment Bonds 7,474 5,453Decrease in loans (6,808) (1,917)Income tax paid / (refund) 73,246 (58,239)(Provision) / reversal for diminution in value of investments (129,653) 286,979Dividend, investment and other income 260,361 222,034Other income - TFCs 12,485 14,712


Definition of cash



Cash and other equivalent 1,157 4,654Current and other accounts 1,373,807 915,961Deposits maturing within 12 months 1,525,062 1,540,415



CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)









CONSOLIDATED CONDENSED INTERIM STATEMENT OF PREMIUMSFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)

Umer ManshaChairman

S.M. JawedDirector



General insurance:

Direct and facultativeFire and property damage 1,426,771 1,562,186 1,964,759 1,024,198 1,055,064 1,129,556 1,381,417 803,203 220,995 325,793Marine, aviation and transport 312,897 58,788 75,005 296,680 45,195 7,018 15,577 36,636 260,044 293,217Motor 963,006 1,964,484 1,972,309 955,181 96,446 214,717 191,295 119,868 835,313 881,929Miscellaneous 562,581 849,363 968,193 443,751 225,367 148,714 322,872 51,209 392,542 297,535

3,265,255 4,434,821 4,980,266 2,719,810 1,422,072 1,500,005 1,911,161 1,010,916 1,708,894 1,798,474Treaty

Proportional - - - - - - - - - 117 - - - - - - - - - 117

Total 3,265,255 4,434,821 4,980,266 2,719,810 1,422,072 1,500,005 1,911,161 1,010,916 1,708,894 1,798,591

Life insurance:

Conventional Business 12,279 - - 12,279 2,187 - - 2,187 10,092 (5,180)Non-unitized Investment Linked Business 23,849 - - 23,849 - - - - 23,849 -Accident and Health Business 90 - - 90 (15) - - (15) 105 (82)Total 36,218 - - 36,218 2,172 - - 2,172 34,046 (5,262)Grand Total 3,301,473 4,434,821 4,980,266 2,756,028 1,424,244 1,500,005 1,911,161 1,013,088 1,742,940 1,793,329



Opening Closing

Premiumsearned

Reinsuranceceded

Reinsuranceexpense


Net premiumrevenue


ended 30June, 2010

Quarterended 30

June, 2009


General insurance:

Direct and facultativeFire and property damage 2,186,227 1,685,968 1,964,759 1,907,436 1,571,034 1,137,049 1,381,417 1,326,666 580,770 653,819Marine, aviation and transport 606,060 42,099 75,005 573,154 92,790 5,155 15,577 82,368 490,786 538,414Motor 1,977,598 1,900,021 1,972,309 1,905,310 205,744 197,408 191,295 211,857 1,693,453 1,795,723Miscellaneous 1,088,395 777,729 968,193 897,931 412,709 142,017 322,872 231,854 666,077 590,482

5,858,280 4,405,817 4,980,266 5,283,831 2,282,277 1,481,629 1,911,161 1,852,745 3,431,086 3,578,438

Treaty

Proportional - - - - - - - - - 117 - - - - - - - - - 117

Total 5,858,280 4,405,817 4,980,266 5,283,831 2,282,277 1,481,629 1,911,161 1,852,745 3,431,086 3,578,555

Life insurance:

Conventional Business 28,027 - - 28,027 11,709 - - 11,709 16,318 1,046Non-unitized Investment Linked Business 23,849 - - 23,849 - - - - 23,849 -Accident and Health Business 187 - - 187 - - - - 187 -Total 52,063 - - 52,063 11,709 - - 11,709 40,354 1,046Grand Total 5,910,343 4,405,817 4,980,266 5,335,894 2,293,986 1,481,629 1,911,161 1,864,454 3,471,440 3,579,601




Opening Closing

Premiumsearned

Reinsuranceceded

Reinsuranceexpense


Net premiumrevenue

Opening ClosingHalf yearended 30

June, 2010

Half yearended 30

June, 2009




CONSOLIDATED CONDENSED INTERIM STATEMENT OF CLAIMSFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)

Umer ManshaChairman

S.M. JawedDirector



Class Total claimspaid

Outstanding claims

Opening Closing

Claimsexpenses



revenue

Reinsurance and other Net claims expense


ended 30June, 2010

Quarterended 30

June, 2009

(Rupees in thousand)General insurance:

Direct and facultativeFire and property damage 543,425 934,476 1,146,840 755,789 339,914 495,201 740,781 585,494 170,295 176,646Marine, aviation and transport 118,262 346,033 347,472 119,701 1,085 174,518 168,572 (4,861) 124,562 103,782Motor 684,449 1,362,085 1,491,513 813,877 83,756 732,743 887,982 238,995 574,882 591,907Miscellaneous 311,932 561,044 615,060 365,948 49,196 393,948 460,380 115,628 250,320 255,696

1,658,068 3,203,638 3,600,885 2,055,315 473,951 1,796,410 2,257,715 935,256 1,120,059 1,128,031

TreatyProportional 460 22,962 22,962 460 - - - - 460 209

460 22,962 22,962 460 - - - - 460 209

Total 1,658,528 3,226,600 3,623,847 2,055,775 473,951 1,796,410 2,257,715 935,256 1,120,519 1,128,240

Life insurance:

Conventional Business 16,798 8,311 3,109 11,596 11,283 - - 11,283 313 -Non-unitized Investment Linked Business - - - - - - - - - -Accident and Health Business - - - - - - - - - -Total 16,798 8,311 3,109 11,596 11,283 - - 11,283 313 -Grand Total 1,675,326 3,234,911 3,626,956 2,067,371 485,234 1,796,410 2,257,715 946,539 1,120,832 1,128,240

Class Total claimspaid

Outstanding claims

Opening Closing

Claimsexpenses



revenue


outstanding claims

Net claims expense

Opening ClosingHalf yearended 30

June, 2010

Half yearended 30

June, 2009

(Rupees in thousand)General insurance:

Direct and facultativeFire and property damage 940,545 1,168,771 1,146,840 918,614 514,427 709,703 740,781 545,505 373,109 319,248Marine, aviation and transport 227,396 359,826 347,472 215,042 7,670 183,873 168,572 (7,631) 222,673 186,079Motor 1,447,192 1,471,832 1,491,513 1,466,873 152,893 705,607 887,982 335,268 1,131,605 1,271,651Miscellaneous 570,845 552,512 615,060 633,393 75,718 362,132 460,380 173,966 459,427 479,344

3,185,978 3,552,941 3,600,885 3,233,922 750,708 1,961,315 2,257,715 1,047,108 2,186,814 2,256,322

TreatyProportional 460 22,962 22,962 460 - - - - 460 10,642

460 22,962 22,962 460 - - - - 460 10,642Total 3,186,438 3,575,903 3,623,847 3,234,382 750,708 1,961,315 2,257,715 1,047,108 2,187,274 2,266,964

Life insurance:Conventional Business 31,161 8,869 3,109 25,401 20,263 - - 20,263 5,138 -Non-unitized Investment Linked Business - - - - - - - - - -Accident and Health Business - - - - - - - - - -Total 31,161 8,869 3,109 25,401 20,263 - - 20,263 5,138 -Grand Total 3,217,599 3,584,772 3,626,956 3,259,783 770,971 1,961,315 2,257,715 1,067,371 2,192,412 2,266,964




CONSOLIDATED CONDENSED INTERIM STATEMENT OF EXPENSESFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)

Umer ManshaChairman

S.M. JawedDirector



Class Commissionspaid orpayable

Deferred commission

Opening Closing

Netcommission

expense

Othermanagement

expenses

Underwritingexpense


Quarterended 30

June, 2010

Quarterended 30

June, 2009


General insurance:

Direct and facultativeFire and property damage 167,988 223,032 265,464 125,556 40,067 165,623 89,895 75,728 67,351Marine, aviation and transport 59,844 8,790 19,176 49,458 47,447 96,905 (881) 97,786 102,525Motor 87,706 168,837 177,788 78,755 133,288 212,043 21,743 190,300 228,811Miscellaneous 37,626 66,042 78,019 25,649 72,958 98,607 33,906 64,701 70,555

353,164 466,701 540,447 279,418 293,760 573,178 144,663 428,515 469,242

Treaty

Proportional - - - - - - - - (581) - - - - - - - - (581)

Total 353,164 466,701 540,447 279,418 293,760 573,178 144,663 428,515 468,661

Life insurance:

Conventional Business 3,717 - - 3,717 29,294 33,011 - 33,011 14,050Non-unitized Investment Linked Business 14,288 - - 14,288 7,416 21,704 - 21,704 -Accident and health business 34 - - 34 129 163 - 163 -Total 18,039 - - 18,039 36,839 54,878 - 54,878 14,050Grand Total 371,203 466,701 540,447 297,457 330,599 628,056 144,663 483,393 482,711

Commissionfrom

reinsurers

Class Commissionspaid orpayable

Deferred commission

Opening Closing

Netcommission

expense

Othermanagement

expenses

Underwritingexpense


Half yearended 30

June, 2010

Half yearended 30

June, 2009


General insurance:

Direct and facultativeFire and property damage 290,803 203,339 265,464 228,678 108,941 337,619 166,609 171,010 154,095Marine, aviation and transport 99,990 7,197 19,176 88,011 91,072 179,083 477 178,606 179,084Motor 182,851 144,778 177,788 149,841 276,162 426,003 36,577 389,426 453,694Miscellaneous 88,599 44,570 78,019 55,150 125,444 180,594 68,096 112,498 123,670

662,243 399,884 540,447 521,680 601,619 1,123,299 271,759 851,540 910,543

Treaty

Proportional - - - - - - - - 41 - - - - - - - - 41

Total 662,243 399,884 540,447 521,680 601,619 1,123,299 271,759 851,540 910,584

Life insurance:

Conventional Business 8,634 - - 8,634 56,219 64,853 - 64,853 14,050Non-unitized Investment Linked Business 14,288 - - 14,288 7,416 21,704 - 21,704 -Accident and health business 74 - - 74 1,738 1,812 - 1,812 -Total 22,996 - - 22,996 65,373 88,369 - 88,369 14,050Grand Total 685,239 399,884 540,447 544,676 666,992 1,211,668 271,759 939,909 924,634


Commissionfrom

reinsurers



Umer ManshaChairman

S.M. JawedDirector



CONSOLIDATED CONDENSED INTERIM STATEMENT OFINVESTMENT INCOMEFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)

General insurance:

Income from non-trading investmentsAvailable-for-sale

Return on fixed income securities 2,160 21,896 - 9,532 Return on Term Finance Certificates 12,485 14,712 6,121 7,785 Return on Pakistan Investments Bonds 7,474 5,390 3,872 4,281 Dividend income

- associated undertakings 132,467 101,092 (37,860) 52,850 - others 113,012 75,309 113,012 17,907

245,479 176,401 75,152 70,757 267,598 218,399 85,145 92,355

Gain on sale of ‘available-for-sale’ investments - associated undertakings 58,874 88,124 18,587 26,434 - others 26,429 (33,372) 23,372 128

85,303 54,752 41,959 26,562 352,901 273,151 127,104 118,917

(Provision) / Reversal for impairment in value of'available-for-sale' investment (129,518) 286,979 (124,896) 56,286

223,383 560,130 2,208 175,203 Life insurance:Share holders' fundAppreciation in value of quoted securities (135) - - - Return on Government Securities 13,574 5,204 5,734 5,204 Return on bank deposit 453 40,493 301 26,659 Dividend income 518 - 80 - Gain on sale of non trading investments 4,018 - 331 -

18,428 45,697 6,446 31,863 Statutory Funds

Conventional BusinessReturn on Government Securities 265 - 265 - Investment income on bank deposits 319 - 213 -Gain on sale of units of open end mutual funds 350 - 167 -

934 - 645 - Non-unitized Investment Linked BusinessReturn on Government Securities - - - - Investment income on bank deposits 16 - 16 - Gain on sale of units of open end mutual funds - - - -

16 - 16 - Accident and Health BusinessReturn on Government Securities - - - - Investment income on bank deposits 2 - 2 - Gain on sale of units of open end mutual funds - - - -

2 - 2 - Net investment income 242,763 605,827 9,317 207,066

Net investment income - statutory fund 952 - 663 - Net investment income - other 241,811 605,827 8,654 207,066

242,763 605,827 9,317 207,066





Quarter ended30 June 2010

Quarter ended30 June 2009



1. THE GROUP AND ITS OPERATIONS

The group consists of:Holding companyAdamjee Insurance Company LimitedSubsidiary company Percentage holding of A damjee I nsurance C ompany Limit ed

Adamjee Life Assurance Company Limited 55%

Adamjee Insurance Company Limited (holding company)

Adamjee Insurance Company Limited (holding c ompany) is a public limit ed company incorporated in Pakistan on 28September 1960 under the Companies Act, 1913 (now the Companies Ordinance, 1984). The company is listed on all thestock exchanges in Pakistan and is engaged in the non-life insurance business.

The registered office of the Company is situated at Adamjee House, I.I. Chundrigar Road, Karachi.

The Company also operates branches in the United Arab Emirates (UAE), the Kingdom of Saudi Arabia (KSA) and the ExportProcessing Zone (EPZ). The branch in the KSA has closed down its operations and is in “run-off” status with effect from 01October 2003.

Adamjee Life Assurance Company Limited (subsidiary company)

Adamjee Life Assurance Company Limited (Subsidiary Company) was incorporated in Pakistan on 4 August 2008 as a publicunlisted company under the Companies Ordinance, 1984 and started its operations from 24 April 2009. The registered officeof the Company is located at MCB Building, Jinnah Avenue, Blue Area, Islamabad while its pr incipal place of business islocated at Third Floor, The Forum, Khayaban-e-Jami, Clifton, Karachi. The Company is an associate of IVM Intersurer B.V. 45%in the share capital of the Company. IVM Intersurer B.V. has nominated Hollard Life Assurance Company Limited (HLA), asubsidiary of IVM Intersurer B.V., to act on its behalf. HLA is South Africa's largest private sector insurance company.

The Company is engaged in life assurance business carrying on non-participating business only. In accordance with therequirements of the I nsurance Ordinance, 2000, the C ompany has established a shar eholders' fund and the f ollowingstatutory funds in respect of its each class of life assurance business:

- Conventional Business - Accident and Health - Non-unitized Investment Linked Business

2. BASIS OF PREPARATION

a) Statement of ComplianceThis consolidated condensed interim financial report of the company for the six months period ended 30 June 2010 hasbeen prepared in accordance with the requirements of the International Accounting Standard 34 - Interim Financial Reportingand provisions of and directives issued under the C ompanies Ordinance, 1984, the I nsurance Ordinance, 2000 and SEC(Insurance) Rules, 2002. In case where requirements differ, the provisions or directives of Companies Ordinance, 1984,Insurance Ordinance, 2000 and SEC (Insurance) Rules, 2002 shall prevail.

The SECP has allowed insurance companies to defer the application of International Accounting Standard - 39 (IAS - 39)'Financial Instruments: Recognition and Measurement' in respect of "Investment available-for-sale" until suitable amendmentshave been made in the la w. Accordingly, the r equirements of IAS - 39, t o the e xtent allowed by SECP, have not beenconsidered in the preparation of this consolidated condensed financial information.

b) Basis of presentationThis consolidated condensed interim financial information comprises the consolidated financial information of AdamjeeInsurance Company Limited and its subsidiary company, Adamjee Life Assurance Company Limited, as at 30 June 2010. Thecondensed interim financial information of the subsidiary companies has been consolidated on line by line basis. All intercompany balances and transaction have been eliminated.

3. BASIS OF MEASUREMENTThis consolidated condensed interim financial information has been prepared under the historical cost convention exceptthat obligations under certain employee benefits are measured at present value.

4. ACCOUNTING POLICIES AND COMPUTATION METHODSThe accounting policies and the methods of c omputation adopted in the pr eparation of this c onsolidated condensedinterim financial information are the same as those applied in the preparation of the consolidated financial statements forthe year ended 31 December 2009.

NOTES TO THE CONSOLIDATED CONDENSEDINTERIM FINANCIAL INFORMATIONFOR THE HALF YEAR ENDED 30 JUNE 2010 (UNAUDITED)

5. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Judgments and estimates made by the management in the preparation of this consolidated condensed interim financialinformation are the same as those applied to the preceeding annual published financial statements of the company for theyear ended 31 December 2009.

6. CONTINGENCIES AND COMMITMENTS

6.1 Contingencies

The income tax assessments of the c ompany have been finalized up to and including the tax y ear 2009. However, thecompany has filed appeals in respect of certain assessment years mainly on account of following:

i) The Deputy Commissioner of Income Tax (DCIT) has finalized assessments for the assessment year 1999-2000 bytaxing capital gains at the full rate of 33%. The aggregate tax liability assessed by the DCIT amounted to Rupees 48.205million against which the c ompany has made a t otal provision of Rupees 44.141 million r esulting in a shor tfall ofRupees 4.064 million. The company filed appeals with the Commissioner of Income Tax (Appeals) and Income TaxAppellate Tribunal (ITAT) which were decided against the company. Consequently the company has filed an appealbefore the Honorable High Court of Sindh and the petition is fixed for regular hearing;

ii) The Additional Commissioner / Taxation Officer has reopened assessments for the assessment years 2000-2001 and2001-2002 by taxing bonus shares received by the company during the above mentioned periods resulting in anadditional tax liability of Rupees 14.907 million. An appeal was filed before the Commissioner of Income Tax (Appeals)who cancelled the amended order passed by the Additional Commissioner and allowed relief to the company butthe Tax Department had filed an appeal before the ITAT against the order of the Additional Commissioner, which hasbeen decided in favour of the company. However, during the period the company received a notice from additionalcommisioner for reassessment of the case. However, the company has filed a constitutional petition in Sindh HighCourt against such order.

iii) While finalizing the assessment for the assessment year 2002-2003, DCIT has reduced the business loss for the yearby Rupees 88.180 million by adjusting the dividend income against this loss. The company maintains that it is entitledto carry the gross loss forward for adjustment against the future taxable income and dividend income for the yearshould be taxed separately at reduced rate. The appeals of the company in this respect have been rejected by theCommissioner of Income Tax (Appeals), the ITAT and the Sindh High Court. The company has now filed a referenceapplication with the Supreme Court of Pakistan. The management is confident that the matter will eventually bedecided in favor of the company and has consequently not made any provision against the additional tax liability ofRupees 26.455 million which may arise in this respect.

iv) The Tax Authorities have also amended the assessments for tax years 2003 to 2007 on the ground that the companyhas not apportioned management and general administration expenses against capital gain and dividend income.The company has filed constitution petition in the High Court of Sindh against the amendment in the assessmentorder. The company may be liable to pay Rupees 5.881 million in the event of decision against the company, out ofwhich Rupees 2.727 million has been provided by the company resulting in a shortfall of Rupees 3.154 million.

v) The Taxation Officer has passed an order in the tax year 2005 and 2006 under section 221 of the Income Tax Ordinance,2001 (the Ordinance) levying minimum tax liability aggregating to Rupees 38.358 million. An appeal had been filedbefore the Commissioner of Income Tax (Appeals) who upheld the order of the Taxation Officer. The Company hasfiled an appeal before ITAT which is pending to be heard.

vi) The Taxation Officer has passed an order under section 161/205 of the Ordinance in Tax year 2007 creating a demandof Rupees 1.263 million. The company filed an appeal before the Commissioner of Income Tax (Appeals) which hasbeen decided against the company. The company is filing an appeal before the Income Tax Appellate Tribunal.

vii) During the period the company received a notice from additional commissioner Inland Revenue pertaining to theassessment of tax year 2008. Among others, the additional commissioner raised issues pertaining to avoidance of taxon capital gains on listed securities. However, the company filed a consituitional petition in Sindh High Court againstsuch order and the court has granted stay in this regard.

Pending resolution of the abo ve-mentioned appeals filed b y the c ompany, no pr ovision has been made in thisconsolidated condensed interim financial information for the aggregate amount of Rupees 88.201 million (31 December 2009: 88.201 million) as the management is confident that the eventual outcome of the above matters will be in favorof the company.

6.2 Commitments

There were no capital or other commitments as at 30 June 2010 (31 December 2009: Nil).






Note7. INVESTMENTS

Held to maturity1 year treasury bills 195,159 96,523Available-for-sale

In related parties

Marketable securities 5,688,704 6,223,534 Less: Provision for impairment in value of investments - -

5,688,704 6,223,534 OthersMarketable securities 4,195,053 3,530,982 Less: Provision for impairment in value of investments (668,464) (541,300)

3,526,589 2,989,682 Fixed income investments - 504,090

3,526,589 3,493,772 At fair value through profit or lossMarketable securities 1,480 1,615

9,411,932 9,815,4448. PREMIUMS DUE BUT UNPAID - Unsecured

Considered good 3,844,538 3,841,755 Considered doubtful 121,670 119,530

3,966,208 3,961,285 Less: Provision for doubtful balances 6.1 (121,670) (119,530)

3,844,538 3,841,7558.1 Reconciliation of provision for doubtful balances

Opening provision 119,530 46,793 Exchange loss 48 90 Charge for the period 7,500 90,864 Written off during the period (5,408) (18,217)Closing provision 121,670 119,530

9. AMOUNTS DUE FROM OTHER INSURERS/ REINSURERS - Unsecured

Considered good 759,267 716,962 Considered doubtful 30,000 30,000

789,267 746,962 Less: Provision for doubtful balances 9.1 (30,000) (30,000)

759,267 716,962

9.1 Reconciliation of provision for doubtful balances

Opening provision 30,000 61,396 Charge for the period - 50,390 Written off during the period - (81,786)Closing provision 30,000 30,000

10. FIXED ASSETS

10.1 The following capital expenditure was incurred during the period:

OwnedBuilding 26,310 - Furniture and fixtures 3,215 11,448 Motor vehicles 21,913 27,075 Machinery and equipment 9,287 44,557 Computer and related accessories 19,083 4,283 Intangible Assets 533 18,037

80,341 105,400Leased - 42,781 Motor vehicles 80,341 148,181


30 June2010

31 December2009


Half year ended30 June 2010






Number of shares




10.2 The following are the written down values of fixed assetsdisposed off during the period:

Furniture and fixtures 352 435Motor vehicles 11,896 15,327Machinery and equipment 289 2,821Computer and related accessories 70 662

12,607 19,245LeasedMotor vehicles 6,979 -

19,586 19,245

11. TRANSACTIONS WITH RELATED PARTIESSubsidiary companyAssociated undertakingsClaims expense 15,504 -Commission expense in respect of Bancassurance 22,039 -Technical support fee 7,184 2,920

Holding CompanyPremium underwritten 590,509 491,486Premium received 520,358 530,939Premium ceded 541 11,836Claims paid 248,939 313,417Rent paid 5,289 4,508Dividend received 132,467 101,110Dividend paid 60,126 36,155Remuneration of directors and key management personnel 38,883 33,291

Bonus shares received 2,114,852 1,922,593Bonus shares issued 4,008,442 -

12. NON-ADJUSTING EVENTS AFTER THE BALANCE SHEET DATE

The Board of Directors of the holding company in their meeting held on 25 August 2010 proposed an interimcash dividend for the half year ended 30 June 2010 @ 10% Rupee 1.00/- share (2009: @ 15% Rupee 1.5/- share). The consolidated condensed interim financial information for the half year ended 30 June 2010 do not includethe effect of this appropriations which will be accounted for in the consolidated financial statements for theyear ending 31 December 2010.

13. SEGMENT REPORTING

For general insurance, each class of business has been identified as reportable segment whereas, for life insurancethe statutory funds are treated as reportable segments. Segment wise revenue and results have been disclosedin the pr ofit and loss ac count. F ollowing is a schedule of seg ment wise assets and liabilities:




General InsuranceFire and Property Damage 4,111,270 3,760,728 350,542Marine, Aviation and Transport 679,281 544,594 134,687Motor 2,818,941 3,894,927 (1,075,986)Miscellaneous 1,720,765 1,881,541 (160,776)Treaty - 22,962 (22,962)

Life InsuranceConventional Business 46,609 46,609 -Non-unitized Investment Linked Business 27,688 27,688 -Accident and Health Business 169 169 -

Unallocated corporate assets / liabilities 13,729,312 1,858,822 11,870,490Total 11,095,995Capital expenditure 80,341

General InsuranceFire and Property Damage 3,618,471 3,351,127 267,344Marine, Aviation and Transport 688,623 514,526 174,097Motor 2,707,357 3,789,672 (1,082,315)Miscellaneous 1,387,620 1,571,735 (184,115)Treaty - 22,962 (22,962)

Life InsuranceConventional Business 41,398 41,398 -Accident and Health Business 9 9 -

Unallocated corporate assets / liabilities 13,420,137 1,593,066 11,827,071Total 10,979,120

Capital expenditure 180,434

Segmentliabilities

Netassets


Segmentassets

30 June, 2010

Segmentliabilities

Unallocatedliabilities

Netassets

Segment assetsUnallocated

assets

30 June, 2010


Segmentliabilities

Netassets


Segmentassets

31 December, 2009

Unallocatedliabilities

Unallocatedassets



14. GENERALFigures have been rounded off to the nearest thousand of rupees.

15. AUTHORISATION FOR ISSUE

These condensed interim consolidated financial information have been authorized for issue on 25 A ugust 2010 by theBoard of Directors of the Company.


Umer ManshaChairman

S.M. JawedDirector



Head Office6th Floor, Adamjee House, I.I. Chundrigar Road, Karachi-74000, Pakistan

www.adamjeeinsurance.com

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