half yearly accounts for the period ending june 30th, 2013 ...aqeel ansari sana-ul-haq hashmi...

Half Yearly Accountsfor the Period Ending

June 30th, 2013(Un-Audited)

Founder Chairman of our group, late Mr. Unus Khan, was born on December 27, 1927 in a respectableand cultured family. He received his basic education in Quetta and after graduation in Aeronauticsand Meteorology in Great Britain, he adopted the field of Civil Aviation as his profession andremained associated with it for over 20 years. Subsequently, he took up the field ofcommerce/business in 1965 and a few years thereafter proceeded to the United States of Americaalong with his family.

In the 70s, besides other ventures, he was associated with the field of insurance in the MiddleEast. He returned to Pakistan in 1982 and founded East West Insurance Company Limited, oursister concern, in 1983. Throughout the remaining years of his life, he remained dedicated todevelopment of East West. He organized and strengthened the company on modern lines and,at the same time, encouraged the executives, field and office personnel of the company to facethe challenges of the market with courage, sincerity and hard work. It was for his determinedleadership, untiring efforts, honesty and sincerity of purpose that Almighty Allah gifted him withsuch an outstanding success that the company became one of the largest insurance companiesof Pakistan during his lifetime.

After taking East West Insurance Company Limited to such heights, it was his desire to developan insurance company for the life assurance sector so that East West Group of Companies couldcater to all insurance related needs of every Pakistani. Unfortunately, private life insurancecompanies were not allowed to operate in the country during his lifetime. However, when thegovernment permitted operation of life insurance companies in the private sector, the sponsorsof East West Insurance Company Limited immediately applied for a license and commencedoperations of The Metropolitan Life Assurance Company of Pakistan Limited in March of 1993.In 2008, the company changed its name to East West Life Assurance Company Limited in orderto give a unified look of a group with a substantial financial base and to service the best interestof policyholders as well as shareholders. Today, by the Grace of Allah, East West Group of Companieshave become symbols of security for thousands of their policyholders and livelihood for theirhundreds of hard-working personnel.

Mr. Unus Khan was endowed with piety, simplicity, sincerity, diligence and affection. He will alwaysbe remembered for his selfless devotion to the cause of combining profound cultural values ofthe EAST with the modern technological developments of the WEST. In order to give perpetuityto the late Chairman of our group, all of us have pledged to adopt his practices as guidelines forthe future. Our beloved Chairman left us to join his heavenly abode on July 27, 1988. May Allahrest his soul in eternal peace. Ameen!

LATE MR. UNUS KHANFounder Chairman, East West Group of Companies

01 Half Yearly Financial Report 2013 Website: www.eastwestlifeco.com

L i feEast

WestASSURANCECOMPANY LIMITED

EAST WEST LIFEASSURANCE COMPANY LIMITED

HALF YEARLY FINANCIAL REPORTFOR THE PERIOD ENDING JUNE 30, 2013

CONTENTS

Board of Directors & Company Information

Management & Bankers

Committees

Our Mission, Vision and Principle Values

Directors' Review to the Shareholders

Auditors’ Report to the Members of East West Life Assurance Company Limited.

Condensed Interim Balance Sheet

Condensed Interim Profit and Loss Account

Condensed Interim Statement of Comprehensive Income

Condensed Interim Statement of Changes in Equity

Condensed Interim Statement of Cash Flows

Condensed Interim Revenue Account

Condensed Interim Statement of Premiums

Condensed Interim Statement of Claims

Condensed Interim Statement of Expenses

Condensed Interim Statement of Investment Income

Notes to the Condensed Interim Financial Statements

Branch Network

02

03

04

05

06

08

09

11

12

12

13

15

16

17

18

19

20

26

02Half Yearly Financial Report 2013Email: [email protected]

EAST WEST LIFEASSURANCE COMPANY LIMITED L i fe

EastWest

ASSURANCECOMPANY LIMITED

BOARD OF DIRECTORS AND COMPANY INFORMATION

Chairman

Managing Director and Chief Executive

Directors

Company Secretary

Appointed Actuary

Consulting Actuaries

Legal Advisor

Auditor

Share Registrar

Registered Office

Head Office

Website

E-Mail

Chief Justice (R) Mian Mahboob Ahmad

Maheen Yunus, CPCU

A. K. M. SayeedJaved Yunus

Pervez YunusNaved Yunus

Omar P. Yunus

Sohail Nazeer

Shujat Siddiqui, MA, FIA, FPSA

Akhtar & Hasan (Private) Limited

Saiyed Younus Saeed

BDO Ebrahim & CompanyChartered Accountants

Bema Associates (Private) Limited515 EFU House, M. A. Jinnah Road,

Karachi., PakistanPhone: (021) 32316087Fax: (92-21) 32316187

28 Regal Plaza, M. A. Jinnah Road,Quetta, Pakistan.

Phone: (081) 2822913, 2821397Fax: (92-81) 2821460

310 EFU House, M. A. Jinnah Road,Karachi, Pakistan.

Phone: (021) 32311662/5, 32310726,32310904, 32310375, 32315723

Fax: (92-21) 32311667

www.eastwestlifeco.com

[email protected]


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Maheen Yunus, CPCU

Imran Ali Dodani

Sohail Nazeer

Raja Gustasab KhanSheikh Khalid Mehmood

Dr. Muhammad AslamMBBS, MD(USA), FCCPS (Part 1)

Dr. Syed Kashif Hamid, MBBSDr. Muhammad Abu Bakar Rashid, MBBS

Dr. Muhammad Saleem Somroo, MBBS

Nadeem AkhtarNauman Mughal

Aqeel AnsariSana-ul-Haq Hashmi

Tanveer IqbalNaveed AshrafAnjum GhazaliKashif NaeemAjaz Hussain

Allied Bank LimitedSummit Bank Limited

MCB Bank LimitedThe Bank of PunjabHabib Bank LimitedAskari Bank Limited

NIB Bank LimitedBank Al-Habib Limited

JS Bank LimitedThe Karakuram Co-Operative Bank Ltd.

Standard Chartered Bank (Pakistan) Ltd.Apna Microfinance Bank Limited

Citibank N.A. PakistanBank Al-Falah Limited

Sindh Bank Limited

Managing Director and Chief Executive

Chief Operating Officer (COO)

Chief Financial Officer (CFO)and Company Secretary

Zonal Heads

Chief Medical Officer (CMO)

Medical Officers

Deputy General Managers

Assistant General Managers

Bankers

MANAGEMENT AND BANKERS

COMMITTEES

Executive Committee

Pervez YunusMaheen Yunus, CPCUNaved YunusJaved YunusSohail Nazeer, Secretary

Audit Committee

Chief Justice (R) Mian Mahboob AhmadNaved YunusPervez YunusA. K. M. SayeedNadeem Akhtar, Secretary

Underwriting Committee

Pervez YunusA. K. M. SayeedJaved YunusShahnaz Parveen, Secretary

Claim Committee

Javed YunusNaved YunusA. K. M. SayeedKashif Naeem, Co-SecretarySaleha Usman, Co-Secretary

Reinsurance Committee

Naved YunusMaheen Yunus, CPCUA. K. M. SayeedSana-ul-Haq Hashmi, Secretary

Investment Committee

A. K. M. SayeedNaved YunusMaheen Yunus, CPCUSohail Nazeer, Secretary

Human Resource & Remuneration Committee

Naved YunusPervez YunusMaheen Yunus, CPCUImran Ali DodaniAnjum Ghazali, Secretary


EastWest


04Email: [email protected] Half Yearly Financial Report 2013

OUR MISSION, VISION AND PRINCIPLE VALUES

OUR MISSION

To provide high quality, competitive insurance products and services through qualified, professionaland committed salespersons.

To maintain financial strength for the benefit of our corporate and individual insurers, shareholders,agents/salespersons and employees.

To earn and protect public trust of the communities where we live and work by supporting goodworks and contributing to charities.

To create a challenging environment and develop a sense of accomplishment for our employeesthrough tools and training to achieve personal growth and contribute to our organization.

To serve the nation by increasing the rate of literacy through our East West Life Educational SecuritySchemes for children and their parents.

To provide the right solutions that are in tune with our customer's needs, while facing up to theemerging challenges in the industry.

To help individuals and families financially realize their hopes and dreams and be there when theyneed us most.

To develop awareness of insurance need, build confidence in the insurance industry and also todevelop the concept of saving.

To innovate and develop ideas to design new products for our valued corporate and individual clientsto effectively meet their ever-changing needs.

OUR VISIONOur vision is to be the number one provider of wide-ranging insurance solutions to all of

Pakistan, a goal we will attain while observing the principal values

that have served us well since inception.

OUR PRINCIPLE VALUES

Safety and Security through expansion, development and profitability.

Exceptional and flexible product-line to meet the needs of our clients.

Respect and consideration for our policyholders, agents and employees.

Vision as well as action to achieve our mission.

Integrity and honesty in every aspects of our organization.

Community improvement through participation.

Excellent service.


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DIRECTORS’ REVIEW TO THE SHAREHOLDERS

The Board of Directors of East West Life Assurance Company Limited are pleased to present theun-audited accounts for the period ended June 30, 2013

The after tax profit for the period ended June 30, 2013 amounts to Rs. 6,684,982 compared tothe loss of (Rs. 14,716,230) during the corresponding period of 2012. This after tax profit/loss hasbeen calculated after taking into account the results of both Shareholders' Fund and StatutoryFunds as detailed hereunder:



EastWest


The profit of nearly Rs. 6.7 million shown above is primarily due to reduction in claims by 25½% asresult of improved niche underwriting and better claims review methodologies utilized by the company'sclaim personnel. Moreover, the management expenses of the company continue to decline in thereporting period by almost 5½% as compared to the corresponding 2012 period. Besides this, aturnaround of more than Rs. 16.5 million in policyholders' liability movement has also contributed verypositively to the bottom-line results of the company. As a result of the improved operational resultsof the company, it has not been necessary to transfer any amount to the statutory funds of the companyduring the reporting period, which is a very encouraging development and achievement for themanagement.

The Board of Directors of the company had approved a right shares issue in their May 10th, 2013meeting. The said right shares issue has been completed successfully and the company has adequatesolvency margins in the shareholders' fund and each statutory fund.

As its ongoing strategy, your company closely monitors the market situation and believes that itsbusiness model and product risk management practice, coupled with a strong customer based anddeep client relationship will give it a sustainable long term competitive advantage. The companyalways aggressively pursues new opportunities and ensures adequate internal preparedness to takemaximum advantage of such opportunities.

OPERATING INCOMEPremium Less ReinsuranesNet Investment Income

Total Net Income

OPERATING EXPENSESClaims, Including Bonuses, Net of Reinsurance RecoveriesManagement Expenses Less Recoveries

Total Claims & ExpenditureExcess of Income Over Claims and Expenditure

Movement in Policyholder’s Liability

Profit/(Loss) Before TaxationTaxation

Profit/(Loss) After Taxation

Rupees Rupees

April to June

2013 2012

Rupees Rupees

January to June

2013 2012

)

)

83,740,26511,383,028

95,123,293

63,275,87936,889,955

100,165,834

(5,042,541

13,029,043

7,986,502(1,301,520

6,684,982

)

))

)

28,961,3446,104,810

35,066,154

35,813,91420,615,571

56,429,485

(21,363,331

16,787,801

(4,575,530(596,969

(5,172,499

)

)

46,130,6414,216,953

50,347,594

22,056,34421,719,837

43,776,181

6,571,413

(3,072,841

3,498,572(610,993

2,887,579

)

)

))

)

95,867,87718,453,399

114,321,276

84,949,01438,999,297

123,948,311

(9,627,035

(3,517,137

(13,144,172(1,572,058

(14,716,230

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We take this opportunity to express our appreciation to Government of Pakistan, Ministry of Commerce,and Securities & Exchange Commission of Pakistan (SECP) for their invaluable assistance andguidance. Your directors would also like to place on record their appreciation for the tremendouscontribution made by the officers, staff and field force towards the development of the company.Finally, we would like to thank our clients for their confidence reposed in your company.

For and on behalf of the Board of Directors,

Dated: August 30, 2013

Maheen Yunus, CPCUManaging Director and Chief Executive



EastWest


AUDITORS’ REPORT TO THE MEMBERS OFEAST WEST LIFE ASSURANCE COMPANY LIMITED

Introduction

We have reviewed the annexed financial statements comprising of:

BDO EBRAHIM & CO.CHARTERED ACCOUNTANTSEngagement Partner: Zulfikar Ali Causer

KarachiDated: August 30, 2013

together with the explanatory notes of EAST WEST LIFE ASSURANCE COMPANY LIMITED (“theCompany”) as at and for the six months period ended June 30, 2013 (here-in-after referred to asthe “condensed interim financial information”). Management is responsible for the preparation andpresentation of this interim financial information in accordance with approved accounting standardsas applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusionon this interim financial information based on our review.

Scope of Review

We conducted our review in accordance with the International Standards on Review Engagements2410, “Review of Interim financial information performed by the Independent Auditor of the Entity”.A review of interim financial information consists of making inquiries, primarily of persons responsiblefor financial and accounting matters and applying analytical and other review procedures. A reviewis substantially less in scope than an audit conducted in accordance with the International Standardon Auditing and consequently does not enable us to obtain assurance that we would become awareof all significant matters that might be identified in an audit. Accordingly, we do not express an auditopinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanyinginterim financial information as at and for the six months period ended June 30, 2013 is not prepared,in all material respects, in accordance with approved accounting standards as applicable in Pakistanfor interim financial reporting.

Emphasis of Matter

Without qualifying our opinion, we draw attention to note 1.2 to the condensed interim financialstatements.

Other Matter

The figures for the quarters ended June 30, 2013 and June 30, 2012 in the accompanying interimfinancial information have not been reviewed and we do not express a conclusion on them.

– condensed interim balance sheet;– condensed interim profit and loss account;– condensed interim statement of comprehensive income;– condensed interim statement of changes in equity;– condensed interim statement of cash flows;– condensed interim revenue account;– condensed interim statement of premiums;– condensed interim statement of claims;– condensed interim statement of expenses; and– condensed interim statement of investment income


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Share Capital and ReservesAuthorized Share Capital60,000,000 (December 31, 2012:60,000,000) Ordinary Sharesof Rs.10 Each

Issued, Subscribed And Paid Up Share CapitalAccumulated (Deficit)

NET SHAREHOLDERS' EQUITY

Advance Against Equity

Balance of Statutory Fund[Including Policyholders’ Liabilities June, 2013: Rs.219.528 Million (December 31, 2012: Rs.231.972 Million) ]

Deferred LiabilitiesOutstanding Gratuity

Creditors and AccrualsOutstanding ClaimsPremiums Received in AdvanceTaxationAmount Due to Other Insurers / ReinsurersAccrued ExpensesAgent's BalancesOther Creditors and Accruals

TOTAL LIABILITIES

CONTINGENCIES ANDCOMMITMENTS

TOTAL EQUITY ANDLIABILITIES

Dated: August 30, 2013

CONDENSED INTERIM BALANCE SHEETAS AT JUNE 30, 2013 (UN-AUDITED)

Note Shareholders’Fund Ordinary Life

UniversalLife

Accidental &Health

Statutory Funds

Figures in Rupees

June 30,2013

Dec. 31,2012

Aggregate

7

8

9

AuditedUn-Audited

-

--

-

-

25,901,540

81,495

31,607,482--

-4,479,980

-357,622

36,445,084

62,428,119

62,428,119

-

--

-

-

188,366,221

-

20,385,27612,121,934

-

760,0794,337,938

990,49491,066

38,686,787

227,053,008

227,053,008

-

--

-

-

24,711,624

-

2,535,807--

-539,571

-107,426

3,182,804

27,894,428

27,894,428

)

600,000,000

500,456,000(418,832,002

81,623,998

90,498,790

-

9,055

--

5,278,519

-1,552,878

-113,136

6,944,533

6,953,588

179,076,376

)

600,000,000

500,456,000(418,832,002

81,623,998

90,498,790

238,979,385

90,550

54,528,56512,121,934

5,278,519

760,07910,910,367

990,494669,250

85,259,208

324,329,143

496,451,931

)

600,000,000

500,456,000(411,900,536

88,555,464

24,000,000

238,391,980

90,550

28,026,62012,842,569

4,313,298

3,544,47811,495,422

1,844,381765,175

62,831,943

301,314,473

413,869,937

Cash and Bank DepositsCash in HandCurrent and Other AccountsDeposits Maturing Within 12 Months

Loans Secured AgainstLife Insurance Policies

Unsecured LoansTo Employees

InvestmentsGovernment SecuritiesOther Fixed Income SecuritiesListed Equities

Current Assets - OtherPremiums Due But UnpaidAmount Due from Other Insurer and ReinsurerPrepaymentsSundry ReceivablesInvestment Income AccruedStationery

Fixed AssetsTangibleFurniture, Fixtures, OfficeEquipment and VehiclesIntangible AssetsSoftware

TOTAL ASSETS



EastWest


Note

The annexed notes from 1 to 14 form an integral part of these condensed interim financial statements.

Shareholders’Fund Ordinary Life

UniversalLife

Accidental &Health

Statutory Funds

Figures in Rupees

June 30,2013

Dec. 31,2012

Aggregate

11

AuditedUn-Audited

10,25182,049,963

54,000,000136,060,214

7,944,088

644,914

200,865,591888,768280,518

202,034,877

22,800,650

2,510,104705,000

6,001,5451,862,760

499,14134,379,200

32,504,579

302,065

413,869,937

-90,897,284

-90,897,284

-

57,768

54,708,988-

280,51854,989,506

-

-675,000

-1,288,110

373,8032,336,913

30,507,697

287,208

179,076,376

84723,437,802

-23,438,649

4,338,397

458,947

22,965,807--

22,965,807

2,713,185

7,225,683-

1,196,60090,851-

11,226,319

-

-

62,428,119

17,71830,004,274

61,000,00091,021,992

3,899,704

-

125,066,440--

125,066,440

3,540,389

--

2,897,439627,044

-7,064,872

-

-

227,053,008

-399,267

-399,267

-

56,968

11,477,445--

11,477,445

13,458,148

--

2,502,600--

15,960,748

-

-

27,894,428

18,565144,738,627

61,000,000205,757,192

8,238,101

573,683

214,218,680-

280,518214,499,198

19,711,722

7,225,683675,000

6,596,6392,006,005

373,80336,588,852

30,507,697

287,208

496,451,931

CHIEF JUSTICE (R) MIAN MAHBOOB AHMADChairman

MAHEEN YUNUS, CPCUManaging Director &

Chief Executive

A.K.M. SAYEEDDirector

NAVED YUNUSDirector


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CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN-AUDITED)FOR THE HALF YEAR ENDING JUNE 30, 2013

Note

Figures in Rupees


Investment Income NotAttributable to Statutory Funds

Return on Government Securities Return on Other Fixed IncomeSecurities and Deposits Amortization of Discount/Premium Relative to ParGain on Sale of Investment

Net Investment Income

Expenses Not Attributable to Statutory Funds

Loss Before Tax

Taxation

Loss After Tax

Loss Per Share -Basic and Diluted

June 30,2013

Half Year Ended

June 30,2012

June 30,2013

Quarter Ended

June 30,2012

)

)

)

)

)

3,077,665

12,010

345,970-

3,435,645

(9,065,591

(5,629,946

(1,301,520

(6,931,466

(0.14

)

)

)

)

)

4,023,438

212,923

522,065228,325

4,986,751

(7,972,680

(2,985,929

(1,572,058

(4,557,987

(0.091

)

)

)

)

)

1,445,578

-

160,746-

1,606,324

(5,439,805

(3,833,481

(610,993

(4,444,474

(0.089

)

)

)

)

)

1,910,371

-

360,878995,045

3,266,294

(4,272,744

(1,006,450

(596,969

(1,603,419

(0.032



Chief Executive


NAVED YUNUSDirector



EastWest


CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)FOR THE HALF YEAR ENDING JUNE 30, 2013

Note

Figures in Rupees


Loss for the Period

Other Comprehensive Income

Total Comprehensive Loss for the Period

June 30,2013

Half Year Ended

June 30,2012

June 30,2013

Quarter Ended

June 30,2012

)

)

(4,444,474

-

(4,444,474

)

)

(6,931,466

-

(6,931,466

)

)

(4,557,987

-

(4,557,987

)

)

(1,603,419

-

(1,603,419


CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)FOR THE HALF YEAR ENDING JUNE 30, 2013

Figures in Rupees

Share Capital

Net Accumulated Surplus/(Deficit)

TotalAccumulated

Deficit

CapitalContributed toStatutory Fund

NetAccumulated

Deficit

Balance as atJanuary 01, 2012

Comprehensive Lossfor the Period

Capital Contributionto Statutory Funds

Balance as at June30, 2012

Balance as atJanuary 01, 2013

Comprehensive Lossfor the Period

Balance as at June30, 2013

500,456,000

-

-

500,456,000

500,456,000

-

500,456,000

)

)

)

)

)

)

(111,360,187

(4,557,987

-

(115,918,174

(118,775,110

(6,931,466

(125,706,576

)

)

)

)

)

(264,970,426

-

(7,020,000

(271,990,426

(293,125,426

-

(293,125,426

)

)

)

)

)

)

)

(376,330,613

(4,557,987

(7,020,000

(387,908,600

(411,900,536

(6,931,466

(418,832,002

)

)

)

124,125,387

(4,557,987

(7,020,000

112,547,400

88,555,464

(6,931,466

81,623,998



Chief Executive


NAVED YUNUSDirector



Chief Executive


NAVED YUNUSDirector


CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)FOR THE HALF YEAR ENDING JUNE 30, 2013

Operating Cash Flows

a) Underwriting Activities

Premium Received Net Reinsurance Premium Paid Claims Paid Surrenders Paid Commission Paid

Net Cash Generatedfrom Underwriting Activities

b) Other Operating Activities

Income Tax Paid General Management Expenses Paid

Net Cash (Used In)Other Operating Activities

Total Cash Generated/(used in)From All Operating Activities

Investment Activities

Profit/Return Received Payments for Investments Proceeds From Disposal of Investments Fixed Capital Expenditure

Total Cash Flow FromInvesting Activities

Shareholders’Fund

OrdinaryLife

UniversalLife

Accidental &Health

Statutory Funds

Figures in Rupees

June 30,2013

June 30,2012

Aggregate

L i feEast



)

)

)

)

)

-----

-

(336,298

(7,022,627

(7,358,925

(7,358,925

2,521,499(9,999,683

18,253,971-

10,775,787

)

)

)

)

)

)

33,296,82112,821,646

(25,050,817-

(1,965,274

19,102,376

-

(3,945,573

(3,945,573

15,156,803

64,979(22,943,921

14,246,609-

(8,632,333

))))

)

)

)

)

)

11,473,858(1,586,246(2,268,139(2,365,873(1,038,885

4,214,715

-

(9,328,975

(9,328,975

(5,114,260

618,833(95,632,078

93,428,443-

(1,584,802

)

)

)

)

)

)

65,328,210-

(46,363,280-

(5,934,467

13,030,463

-

(9,333,122

(9,333,122

3,697,341

225,644(11,466,487

7,499,420-

(3,741,423

))))

)

)

)

)

)

110,098,88911,235,400

(73,682,236(2,365,873(8,938,626

36,347,554

(336,298

(29,630,297

(29,966,595

6,380,959

3,430,955(140,042,169

133,428,442-

(3,182,771

))))

)

)

)

)

)

)

131,615,056(1,199,710

(116,171,847(4,227,309(5,605,927

4,410,263

(340,551

(29,644,663

(29,985,214

(25,574,951

3,450,478(157,860,803

167,135,794(136,904

12,588,565

Financing Activities

Advance Against Equity Received - Net Dividend Paid

Total Cash Flow FromFinancing Activities

Net Cash Generated/(Used In) from all Activities

Cash at the Beginningof the Period

Cash at the Endof the Period

Reconciliation to Profit and Loss Account

Operating Cash flows Depreciation Expense Investment Income Increase / (Decrease) in Assets Other Than Cash Decrease in Liabilities Other Than Running Finance (Deficit) / Surplus of Statutory Funds

Loss After Taxation




UniversalLife

Accidental &Health

Statutory Funds

Figures in Rupees

June 30,2013

June 30,2012

Aggregate


EastWest


66,498,790-

66,498,790

69,915,652

20,981,632

90,897,284

--

-

6,524,470

16,914,179

23,438,649

)

--

-

(6,699,062

97,721,054

91,021,992

)

--

-

(44,082

443,349

399,267

)

))

)

66,498,790-

66,498,790

69,696,978

136,060,214

205,757,192

6,380,959(2,011,7399,424,7972,289,189

(9,398,224(13,616,448

(6,931,466

)

)

)

))

))

)

-(326

(326

(12,986,712

154,862,123

141,875,411

(25,574,951(2,555,90318,453,399(3,083,833(1,954,94210,158,243

(4,557,987



Chief Executive


NAVED YUNUSDirector


CONDENSED INTERIM REVENUE ACCOUNT (UN-AUDITED)FOR THE HALF YEAR ENDING JUNE 30, 2013

IncomePremiums Less ReinsurancesNet Investment Income

Total Net Income

Claims and ExpenditureClaims, Including Bonuses, Net of Reinsurance RecoveriesManagement Expenses Less Recoveries

Total Claims and Expenditure

Excess/(Deficit) of Income OverClaims and Expenditure

Add: Policyholders’ Liabilities at Beginning of PeriodLess: Policyholders’ Liabilities at End of Period

Surplus/(Deficit)

Movement in Policyholders’ Liabilities

Transfer To or From Shareholders' Fund -Capital Contribution From Shareholders' Fund

Balance of Statutory Fund at Beginning of the Year

Balance of Statutory Funds at End of Period

Represented by:

Capital Contributed by Shareholders’ FundAccumulated (Deficit)

Policyholders’ Liabilities

BALANCE OF STATUTORY FUND


Figures in Rupees

OrdinaryLife

UniversalLife

Accidental &Health

Statutory Funds Aggregate

June 30, 2013 June 30, 2012

Quarter Ended

June 30, 2012June 30, 2013

Note Half Year Ended

10

L i feEast



)

)

)

)

28,961,3442,838,516

31,799,860

35,813,91416,342,827

52,156,741

(20,356,881

248,760,253

231,972,45216,787,801

(3,569,080

(16,787,801

2,600,000

256,517,485

238,760,604

271,990,426(265,202,274

6,788,152

231,972,452

238,760,604

)

)

)

)

6,669,163510,455

7,179,618

6,491,3914,172,930

10,664,321

(3,484,703

27,043,676

25,390,2271,653,449

(1,831,254

(1,653,449

-

29,386,243

25,901,540

137,630,426(137,119,113

511,313

25,390,227

25,901,540

)

)

)

11,151,5686,974,950

18,126,518

10,821,2088,760,549

19,581,757

(1,455,239

189,628,267

185,238,2614,390,006

2,934,767

(4,390,006

-

189,821,460

188,366,221

120,200,000(117,072,040

3,127,960

185,238,261

188,366,221

)

)

65,919,534461,978

66,381,512

45,963,28014,890,885

60,854,165

5,527,347

15,885,036

8,899,4486,985,588

12,512,935

(6,985,588

-

19,184,277

24,711,624

35,295,000(19,482,824

15,812,176

8,899,448

24,711,624

)

)

83,740,2657,947,383

91,687,648

63,275,87927,824,364

91,100,243

587,405

232,556,979

219,527,93613,029,043

13,616,448

(13,029,043

-

238,391,980

238,979,385

293,125,426(273,673,977

19,451,449

219,527,936

238,979,385

)

)

)

)

95,867,87713,466,648

109,334,525

84,949,01431,026,617

115,975,631

(6,641,106

228,455,315

231,972,452(3,517,137

(10,158,243

3,517,137

7,020,000

238,381,710

238,760,604

271,990,426(265,202,274

6,788,152

231,972,452

238,760,604

)

)

46,130,6412,610,629

48,741,270

22,056,34416,280,032

38,336,376

10,404,894

216,455,095

219,527,936(3,072,841

7,332,053

3,072,841

-

228,574,491

238,979,385

293,125,426(273,673,977

19,451,449

219,527,936

238,979,385



Chief Executive


NAVED YUNUSDirector

Figures in Rupees

OrdinaryLife

UniversalLife

Accidental &Health


June 30, 2013 June 30, 2012

Quarter Ended

June 30, 2012June 30, 2013

Half Year Ended


CONDENSED INTERIM STATEMENT OF PREMIUMS (UN-AUDITED)FOR THE HALF YEAR ENDING JUNE 30, 2013

Gross Premiums

Regular Premium Individual Policies* First Year Second Year Renewal Subsequent Year Renewal Single Premium Individual PoliciesGroup Policies

Total Gross Premiums

Less: Reinsurance Premiums Ceded

On Individual Life First Year Business On Individual Life Second Year Business On Individual Life Renewal Business On Group Policies

Net Premiums

* Individual policies are those underwritten on an individual basis and includes joint life policies underwritten.



EastWest


))))

)

725,045715,148

8,050,887550,000

37,845,751

47,886,831

(3,997(52,249

(508,679(18,360,562

(18,925,487

28,961,344

))))

)

1,113,6142,789,792

13,588,161550,000

112,213,566

130,255,133

(6,024(150,689(642,762

(33,587,781

(34,387,256

95,867,877

)

)

----

30,168,569

30,168,569

---

(23,499,406

(23,499,406

6,669,163

)))

)

1,055,7071,141,6669,739,133

--

11,936,506

(7,862(9,562

(767,514-

(784,938

11,151,568

----

65,919,534

65,919,534

----

-

65,919,534

))))

)

1,055,7071,141,6669,739,133

-96,088,103

108,024,609

(7,862(9,562

(767,514(23,499,406

(24,284,344

83,740,265

))))

)

730,726453,351

4,846,144-

48,520,504

54,550,725

(5,903(7,636

(566,139(7,840,406

(8,420,084

46,130,641



Chief Executive


NAVED YUNUSDirector


CONDENSED INTERIM STATEMENT OF CLAIMS (UN-AUDITED)FOR THE HALF YEAR ENDING JUNE 30, 2013

Gross Claims

Claims Under Individual Policies by Death by Insured Event Other than Death by Maturity by Surrender

Total Gross Individual Policy Claims

Claims Under Group Policies by Death by Insured Event Other Than Death

Total Gross Group Policy Claims

Total Gross Claims

Less: Reinsurance Recoveries On Group Life Claims

Net Claims


Figures in Rupees

OrdinaryLife

UniversalLife

Accidental &Health


June 30, 2013 June 30, 2012

Quarter Ended

June 30, 2012June 30, 2013

Half Year Ended

L i feEast



)

508,269-

1,971,7293,107,525

5,587,523

24,246,02524,345,709

48,591,734

54,179,257

(18,365,343

35,813,914

)

958,587-

3,757,8415,704,345

10,420,773

53,045,62861,449,587

114,495,215

124,915,988

(39,966,974

84,949,014

)

----

-

45,337,933427,633

45,765,566

45,765,566

(39,274,175

6,491,391

1,733,82012,857

3,167,7085,906,823

10,821,208

--

-

10,821,208

-

10,821,208

----

-

-45,963,280

45,963,280

45,963,280

-

45,963,280

)

1,733,82012,857

3,167,7085,906,823

10,821,208

45,337,93346,390,913

91,728,846

102,550,054

(39,274,175

63,275,879

)

377,807-

1,914,4382,375,384

4,667,629

17,463,97714,402,796

31,866,773

36,534,402

(14,478,058

22,056,344



Chief Executive


NAVED YUNUSDirector


CONDENSED INTERIM STATEMENT OF EXPENSES (UN-AUDITED)FOR THE HALF YEAR ENDING JUNE 30, 2013

Acquisition Costs

Remuneration to Insurance Intermediarieson Individual Policies: Commission on First Year Premiums Commission on Second Year Premiums Commission on Subsequent Renewal Premiums Other Benefits to InsuranceRemuneration to Insurance Intermediaries onGroup Policies: Commission

Branch Overhead:Other Acquisition Cost Policy Stamps

Total Acquisition Cost

Administration ExpensesSalaries and Other BenefitsTravelling ExpensesAuditors RemunerationActuary's FeesMedical FeesAdvertisementsPrinting and StationaryRental

Other Management Expenses

Gross Management Expenses

Commission From Reinsurers

Net Management Expenses


Figures in Rupees

OrdinaryLife

UniversalLife

Accidental &Health


June 30, 2013 June 30, 2012

Quarter Ended

June 30, 2012June 30, 2013

Half Year Ended


EastWest


)

660,195119,275

128,994

29,000

4,204,4945,141,958

1,045,594

5,100

6,192,652

7,000,578529,345124,959280,500127,675

9,00097,213

222,9638,392.233

3,155,190

17,740,075

(1,397,248

16,342,827

)

793,554164,147

177,407

241,180

6,004,5247,380,812

2,411,278

5,100

9,797,190

13,620,708956,158124,959701,250273,960

25,000615,131420,756

16,737,922

7,038,337

33,573,449

(2,546,832

31,026,617

)

196,79525,666

93,635

-

5,795,1236,111,219

1,246,846

5,100

7,363,165

5,582,662235,752107,901423,000

26,13073,32962,901

372,6426,884,317

2,640,264

16,887,746

(607,714

16,280,032

)

343,61669,221

185,424

98,781

7,387,6978,084,739

2,061,061

5,100

10,150,900

12,240,808567,878107,901843,750

48,18086,329

368,451558,965

14,822,262

4,638,517

29,611,679

(1,787,315

27,824,364

--

-

-

5,450,5445,450,544

-

-

5,450,544

7,485,242139,048

35,96756,250-

24,443136,425

35,6007,912,975

1,527,366

14,890,885

-

14,890,885

)

343,61669,221

185,424

98,781

-697,042

2,061,061

5,100

2,763,203

2,729,622275,404

35,967731,250

7,28024,443

118,290286,418

4,208,674

1,813,531

8,785,408

(24,859

8,760,549

)

--

-

-

1,937,1531,937,153

-

-

1,937,153

2,025,944153,426

35,96756,25040,90037,443

113,736236,947

2,700,613

1,297,620

5,935,386

(1,762,456

4,172,930



Chief Executive


NAVED YUNUSDirector


CONDENSED INTERIM STATEMENT OF INVESTMENT INCOME (UN-AUDITED)FOR THE HALF YEAR ENDING JUNE 30, 2013

Investment Income

On Government Securities On Other Fixed Income Securities and Deposits Amortization of Premium Amortization of Discount On Policy Loan Other Miscellaneous Income

Gain on Sale of Investments

Total Investment Income


Figures in Rupees

OrdinaryLife

UniversalLife

Accidental &Health


June 30, 2013 June 30, 2012

Quarter Ended

June 30, 2012June 30, 2013

Half Year Ended

L i feEast



)

5,933,804

757,020(9,5314,619

28,347202,975

6,917,234

6,549,414

13,466,648

)

2,534,774

76,475(4,7523,347

25,697202,975

2,838,516

-

2,838,516

484,125

26,330----

510,455

-

510,455

252,584

----

209,394461,978

-

461,978

)

2,111,257

291,658(3,1941,514-

209,3942,610,629

-

2,610,629

)

5,227,858

555,748(7,9083,011

6432,168,0317,947,383

-

7,947,383

)

4,491,149

529,418(7,9083,011

6431,958,6376,974,950

-

6,974,950



Chief Executive


NAVED YUNUSDirector


NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)FOR THE HALF YEAR ENDING JUNE 30, 2013

1.

1.1

1.2

2.

STATUS AND NATURE OF BUSINESS

East West Life Assurance Company Limited (the company) was incorporated in Pakistan onAugust 18, 1992 as a public limited company under the Companies Ordinance, 1984. Its sharesare quoted on Karachi Stock Exchange. The company commenced life insurance operationson February 22, 1993 after registration with Controller of Insurance on February 14, 1993. Theaddresses of its registered and principal office are 57 Regal Plaza, M.A. Jinnah Road, Quettaand 310 EFU House, M.A. Jinnah Road Karachi, respectively. The company is engaged in lifeinsurance business. In accordance with the requirements of Insurance Ordinance, 2000. Thecompany has established shareholders’ fund and following statutory funds in respect of itseach class of life insurance business:

Ordinary life;Universal life; and Accident and health.

In accordance with SEC (Insurance) Rules, 2002 ("Rules") amended vide SRO 16(1)/2012dated January 09, 2012, Life Insurance Companies are required to maintain a solvency marginin addition to policyholders' liabilities in each statutory fund as stipulated in the Rules. Duringthe period, Board of Directors in their meeting dated May 10, 2013, approved the right sharesissue of Rs. 93.835 million to meet the solvency margin requirements which have been issuedsuccessfully. As at June 30, 2013, the solvency margin portion of the statutory funds has beenmaintained in the shareholders’ fund. In this regard, management has written as per Rule 12(2)to Securities and Exchange Commission of Pakistan (SECP) for getting permission to maintainthe solvency margin requirements against shareholders’ fund and each statutory funds inaggregate in the shareholders’ fund instead of maintaining it in each statutory funds separately.We have been informed by management that no response has been received from the SECPto their letter upto the date of issue of financial statements.

BASIS OF PRESENTATION

These condensed interim financial statements are presented in condensed form in accordancewith the requirements of International Accounting Standard 34 "Interim Financial Reporting".

The disclosures made in these condensed interim financial statements have been limited basedon the formats prescribed by the Insurance Rules, 2002 and approved accounting standardsas applicable in Pakistan for interim financial reporting.

These condensed financial statements do not include all of the information required for fullfinancial statements and should be read in conjunction with the financial statements of thecompany for the year ended December 31, 2012.

These financial statements have been presented in Pak Rupees, which is the functional andpresentation currency of the Company.


EastWest



L i feEast



3.

4.

5.

6.

BASIS OF MEASUREMENT

The financial statements have been prepared under the historical cost convention except forcertain financial assets and liabilities which are stated at fair value or amortized cost as applicable.

The financial statements have been prepared under the accrual basis of accounting except forcash flow information.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies adopted in the preparation of these financial statementsare in line with the audited annual accounts for the year ended December 31, 2012.

USE OF ESTIMATES AND JUDGEMENTS

Preparation of the condensed interim financial statements requires management to makejudgements, estimates and assumptions that effect the application of accounting policies andthe reported amounts of assets and liabilities, income and expenses. Actual results may differfrom these estimates.

In preparing the condensed interim financial statements, the significant judgments made bythe management in applying the Company's accounting policies and the key sources ofestimation uncertainty were the same as those that applied to the financial statements as atand for the year ended December 31, 2012.

FINANCIAL AND INSURANCE RISK MANAGEMENT

The Company's financial and insurance risk management objectives and policies are consistentwith those disclosed in the annual financial statements as at and for the year ended December31, 2012.

7. ANALYSIS OF ACCUMULATED SURPLUS/(DEFICIT)AS SHOWN IN BALANCE SHEET

Accumulated Deficit inStatement of Changes in EquityIgnoring Effect of Capital Transfersat Start of Period

Add: Deficit in Profit and Loss Account for the Period

Less: Accumulated Net Capital Transferred in Statutory Funds

Total Accumulated Deficit as Shown in Balance Sheet

Un-AuditedJune 30, 2013

AuditedDec 31, 2012

Rupees Rupees

)

)

)

)

)

(111,360,187

(7,414,923

(118,775,110

(293,125,426

(411,900,536

)

)

)

)

)

(118,775,110

(6,931,466

(125,706,576

(293,125,426

(418,832,002



EastWest


8.

9.

ADVANCE AGAINST EQUITY

This represents amount received from directors and sponsors of the company against rightissue of shares offered by the Company (December 31, 2012 : Rs 24.000 million.). Subsequentto the balance sheet date the amount has been allotted on July 31, 2013.

CONTINGENCIES AND COMMITMENTS

There are no contingencies and commitments as at June 30, 2013 (December 31, 2012: nil).

Ordinary LifeUniversal

LifeAccidental &

Health

Statutory Funds



Aggregate

Policyholder Liabilities

Balance at Beginningof the Period

Increase / (Decrease)During the Period

Balance at End of the Period

Capital Contributed ByShareholders' Fund

Balance at the Beginningof the Period

Capital Contributed Duringthe Period


Accumulated (Deficit)

Balance at the Beginningof the Period

Surplus/(Deficit) Allocated inRespect of the Period


(Rupees)

MOVEMENTS IN STATUTORY FUNDS10.

)

)

)

228,455,315

3,517,137

231,972,452

264,970,426

7,020,000

271,990,426

(255,044,031

(10,158,243

(265,202,274

)

)

)

232,556,979

(13,029,043

219,527,936

293,125,426

-

293,125,426

(287,290,425

13,616,448

(273,673,977

)

)

)

15,885,036

(6,985,588

8,899,448

35,295,000

-

35,295,000

(31,995,759

12,512,935

(19,482,824

)

)

)

189,628,267

(4,390,006

185,238,261

120,200,000

-

120,200,000

(120,006,807

2,934,767

(117,072,040

)

)

)

)

27,043,676

(1,653,449

25,390,227

137,630,426

-

137,630,426

(135,287,859

(1,831,254

(137,119,113

L i feEast




INVESTMENTS11.

Note Shareholders’Fund Ordinary Life

UniversalLife

Accidental &Health

Un-AuditedJune 30,

2013

AuditedDecember 31,

2012

Statutory Funds

(Rupees)

Government Securities

Other Fixed Income Securities

Listed Equities

Government Securities

Held to Maturity

10 Years Pakistan Investment Bonds








12 Months Treasury Bills



11.1

11.1

11.2

11.3

The particulars of investments are as follows:

Held to Maturity10 Years Pakistan Investment Bonds10 Years Pakistan Investment Bonds10 Years Pakistan Investment Bonds10 Years Pakistan Investment Bonds10 Years Pakistan Investment Bonds10 Years Pakistan Investment Bonds10 Years Pakistan Investment Bonds10 Years Pakistan Investment Bonds12 Months Treasury Bills12 Months Treasury Bills12 Months Treasury Bills

Total

April 2014April 2014October 2013May 2016August 2018July 2020August 2021July 2020July 2013October 2013November 2013

On MaturityOn MaturityOn MaturityOn MaturityOn MaturityOn MaturityOn MaturityOn MaturityOn MaturityOn MaturityOn Maturity

8%8%8%

9.6%12%12%12%12%

9.05%8.70%8.72%

Semi-AnnuallySemi-AnnuallySemi-AnnuallySemi-AnnuallySemi-AnnuallySemi-AnnuallySemi-AnnuallySemi-Annually

On MaturityOn MaturityOn Maturity

Maturity PrincipalRepayment

CouponPercentage

CouponPayment

Amount inRupees

54,708,988

-

280,518

54,989,506

5,000,000

-

-

18,409,886

1,974,620

3,728,813

15,586,453

-

-

10,009,216

-

54,708,988

22,965,807

-

-

22,965,807

-

-

-

-

-

-

-

-

-

17,977,720

4,988,087

22,965,807

125,066,440

-

-

125,066,440

-

2,999,914

598,799

-

-

-

-

1,189,536

24,560,261

80,705,239

15,012,691

125,066,440

11,477,445

-

-

11,477,445

-

-

-

-

-

-

-

-

-

-

11,477,445

11,477,445

214,218,680

-

280,518

214,499,198

5,000,000

2,999,914

598,799

18,409,886

1,974,620

3,728,813

15,586,453

1,189,536

24,560,261

108,692,175

31,478,223

214,218,680

200,865,591

888,768

280,518

202,034,877

5,000,000

2,999,863

596,573

18,136,821

1,972,185

3,709,781

15,535,015

1,188,802

23,506,394

128,220,157

-

200,865,591

5,000,0002,999,914

598,79918,409,886

1,974,6203,728,813

15,586,4531,189,536

24,560,261108,692,175

31,478,223

214,218,680


EastWest



Listed Equities11.3


UniversalLife

Accidental &Health


AuditedDec. 31, 2012

Statutory Funds

(Rupees)

Available for Sale

Listed Equities 280,518

280,518

280,518

280,518

-

-

-

-

-

-

280,518

280,518

Other Fixed Income Securities11.2

Held to MaturityTerm Finance Certificate

Pakistan Mobile Communication Limited


UniversalLife

Accidental &Health


AuditedDec. 31, 2012

Statutory Funds

(Rupees)

- - -- - 888,768

TRANSACTIONS WITH RELATED PARTIES

The related parties comprises of East West Insurance Company Limited (Associated Company),Directors of the company, key management personnel, associated undertakings, entitieswith common directors, statutory funds and employees' funds. Following are the balancesand transactions with related parties.

12.

---

--

--

---

--

--

Directors KeyManagement

Personnel

AssociatedCompanies &

CommonDirectorship

June 30, 2013 December 31, 2012

Directors KeyManagement

Personnel

AssociatedCompanies &

CommonDirectorship

Transactions Premium received Premium paid Claims paid

Investments Sales Purchases

Balances Premium receivable Investment

---

--

--

---

--

--

(Rupees)

---

--

-280,518

-222,809

-

13,329,9332,726,754

-280,518

L i feEast




13.

14.

DATE OF ISSUE

These financial statements are authorised for issue on August 30, 2013 by the Board ofDirectors of the Company.

CORRESPONDING FIGURES

Previous figures have been rearranged and reclassified wherever necessary for the purposeof comparison.



Chief Executive


NAVED YUNUSDirector

26Half Yearly Financial Report 2013Email: [email protected]


EastWest


Lahore

Zonal Office*

2nd Floor, Naqi Arcade,

71-Shahrah-e-Quaid-e-Azam, Lahore.

Tel. : (042) 36370181, 36370717

Fax: (92-42) 36370711

E-Mail: [email protected]

Sahiwal

1st Floor, Mansha Plaza,

Lahore Commercial Centre,

Near General Bus Stand, G. T. Road, Sahiwal.

Mobile: (0322) 7854248

Multan

2nd Floor, Ghaffar Plaza, Bohra Street,

Multan Cantt., Multan.

Tel. : (061) 4504345, 4504346

Fax : (061) 4504348

Sialkot

1st Floor, Yazdani Autos,

Opposite M. F. Elahi Building,

Kashmir Road, Sialkot.

Tel. : (052) 4297420

Layyah

1st Floor of Khan Plaza,

Main Choubara Road, Layyah.

Tel. : (060) 6410371

Rawalpindi

Zonal Office*

55-A, Bank Road, Rawalpindi Cantt., Rawalpindi.

Tel. : (051) 5514322 Fax: (92-51) 5564809


Gujrat

Near Grid Station / Police Chowki,

Sargodha Road, Gujrat.

Tel. : (053) 3538067, 3535658

Fax: (92-53) 3538071


Chakwal

1st Floor,

Bait-ul-Mukarram Masjid,

Talagang Road, Chakwal.

Tel. : (0543) 553226

Mobile: (0300) 5814289

Jhelum

F-1, 3rd Floor, Shabbir Plaza,

Shandar Chowk, Jhelum.

Tel. : (0544) 623231, 623261

Fax : (0544) 720631

Havelian

Railway Road,

Main Bazar, Havelian.

Tel. : (0992) 810323, 810896

Pindi Gheb

Gulf Plaza,

Banhora Chowk, Pindi Gheb.

Tel. : (0572) 350608

Muzaffarabad (Azad Kashmir)

Flat No. 4, Azam Plaza,

Opp.: PSO Petrol Pump,

Chehla Neelum Road,

Muzaffarabad (A.K.).

Mobile: (0300) 9111787

BRANCH NETWORK


L i feEast



Note: Besides the company’s head office (stated on pagenumber 2), corporate (group life and group health)insurance services are also offered at the above individuallife sales offices marked with an asterisk (*).

Mirpur (Azad Kashmir)

1st Floor, 23 Ayub Plaza, Mian Muhammad Road,

Mirpur (Azad Kashmir).

Tel. : (058610) 35491, 92898

Bhimber (Azad Kashmir)

Ch. Barkat Plaza,

Samahni Road,

Bhimber (A.K.).

Tel. : (058650) 43551

BRANCH NETWORK

Rawlakot (Azad Kashmir)

Near C.M.H.,

Rawlakot (A.K.).

Tel. : (058710) 43554

Peshawar

Zonal Office*

Room No. 1 & 2, 1st Floor,

Sughra Building, 8-Saddar Road,

Opposite State Bank of Pakistan ,

Peshawar Cantt., Peshawar.

Tel. : (091) 5284725, Fax: (92-91) 5273874


half yearly accounts for the period ending june 30th, 2013 ...aqeel ansari sana-ul-haq hashmi...

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