contents Company Information Directors Report to the Shareholders on Unconsolidated Condensed Interim Financial Information

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2 contents 2 Company Information 3 s Report to the Shareholders on Unconsolidated Condensed Interim Financial Information 4 Auditors' Report to the Members on Review of Interim Financial Information 5 Unconsolidated Condensed Interim Financial Information 23 s Report to the Shareholders on Consolidated Condensed Interim Financial Information 25 Consolidated Condensed Interim Financial Information 42 Shareholder s Information Pattern of Shareholding s Report to the Shareholders on Consolidated (Urdu) 45 s Report to the Shareholders on Unconsolidated (Urdu) IGI INSURANCE HALF YEARLY REPORT JUNE206

3 company information Board of s Syed Babar Ali () Shamim Ahmad Khan Syed Yawar Ali Syed Shahid Ali Syed Hyder Ali Faryal Jooma Osman Khalid Waheed Tahir Masaud Chief Executive Officer Tahir Masaud Chief Financial Officer Abdul Haseeb Company Secretary Adil Ali Abbasi Chief Technical Officer Faisal Khan Audit Committee Shamim Ahmad Khan () Syed Yawar Ali Syed Hyder Ali Faryal Jooma Muhammad Junaid Qamar (Secretary) Investment Committee Syed Hyder Ali () Shamim Ahmad Khan Syed Yawar Ali Osman Khalid Waheed Tahir Masaud Abdul Haseeb Sajjad Iftikhar (Secretary) Claims Committee Shamim Ahmad Khan () Tahir Masaud Abdul Haseeb Asad Ali Siddiqui Kashif Qayyum Zahid Mehmood (Secretary) Underwriting Committee Syed Hyder Ali () Tahir Masaud Faisal Khan Haider Ali Jamshaid Hussain (Secretary) ReInsurance & CoInsurance Committee Syed Hyder Ali () Tahir Masaud Faisal Khan (Secretary) Human Resources & Compensation Committee Syed Yawar Ali () Syed Shahid Ali Syed Hyder Ali Faryal Jooma Tahir Masaud Kaifee Siddiqui (Secretary) Bankers Allied Bank Limited Bank Al Habib Limited Bank Islami Pakistan Limited Faysal Bank Limited Habib Bank Limited Habib Metropolitan Bank JS Bank Limited MCB Bank Limited National Bank of Pakistan NIB Bank Limited Soneri Bank Limited Standard Chartered Bank (Pakistan) Limited United Bank Limited Auditors A.F. Ferguson & Co. Chartered Accountants Internal Auditors Ernst & Young Ford Rhodes Sidat Hyder Chartered Accountants Legal Advisors Ramday Law Associates Hassan & Hassan Lari & Company Share Registrar FAMCO Associates (Private) Limited 8F, Next to Hotel Faran, Nursery, Block6, P.E.C.H.S., ShahraheFaisal, Karachi Registered & Head Office 7th Floor, The Forum, Suite Nos. 7073, G20, Block9, KhayabaneJami, Clifton, Karachi75600, Pakistan Contact UAN: Toll Free No: FAX: HALF YEARLY REPORT JUNE206 IGI INSURANCE

4 s report to the shareholders on unconsolidated condensed interim financial information The s of IGI Insurance take pleasure in presenting their review together with the unconsolidated condensed interim financial information (unaudited) for the half year ended June 30, 206. During the current period, your Company achieved growth in gross written premium of 25% posting Rs,668 million as compared to Rs,330 million in the corresponding period of 205. The net retained premium increased by 8% as compared to the corresponding period. Net claims for the six months have increased by 7% as compared to the corresponding period of last year. Investment income during the six months amounted to Rs 784 million as compared to Rs 938 million in the previous period. The Company s profit for the period and earnings per share amounts to Rs 485 million and Rs 3.95 per share respectively for the six months as compared to Rs 796 million and Rs 6.49 per share for the same period in 205. The main reason for decline in profitability as compared to last year is the fact that the Company had benefitted from a one off capital gain due to sale of shares of a listed company in the corresponding period of 205. More importantly, the profitability of the Company has been adversely impacted by an increase in the tax rate on investment income from 2.5% to 3%; an insurance specific measure viewed by the industry as extremely regressive and affecting capital formation. We cherish the support and patronage extended by our business partners and all stakeholders and appreciate the dedicated and sincere efforts of our employees. For and on behalf of the Board Syed Babar Ali Lahore : August 25, 206 IGI INSURANCE HALF YEARLY REPORT JUNE206 3

5 Auditors' Report to the Members on Review of Interim Financial Information Introduction We have reviewed the accompanying i. unconsolidated condensed interim balance sheet; ii. unconsolidated condensed interim profit and loss account; iii. unconsolidated condensed interim statement of changes in equity; iv. unconsolidated condensed interim statement of cash flows; v. unconsolidated condensed interim statement of premiums; vi. unconsolidated condensed interim statement of claims; vii. unconsolidated condensed interim statement of expenses; and viii. unconsolidated condensed interim statement of investment income of IGI Insurance Limited (the Company) together with the notes forming part thereof as at and for the half year ended June 30, 206 (hereinafter referred to as the "condensed interim financial information"). Management is responsible for the preparation and presentation of this condensed interim financial information in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on this condensed interim financial information based on our review. The figures of the condensed interim financial information for the quarters ended June 30, 205 and June 30, 206 have not been reviewed, as we are required to review only the cumulative figures for the half year ended June 30, 206. Scope of Review We conducted our review in accordance with the International Standard on Review Engagements 240, "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 responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial information as of and for the half year ended June 30, 206 is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. Chartered Accountants Engagement Partner: Shahbaz Akbar Karachi: August 26, HALF YEARLY REPORT JUNE206 IGI INSURANCE

6 Unconsolidated Condensed Interim Financial Information for the Half Year Ended June 30, 206

7 Unconsolidated Condensed Interim Balance Sheet Share capital and reserves Authorised share capital [200,000,000 (December 3, 205: 200,000,000) Ordinary shares of Rs.0/ each] Note Unaudited Audited June 30, 206 Dec. 3, 205 2,000,000 2,000,000 Issued, subscribed and paid up share capital Unappropriated profit Reserves Underwriting provisions Provision for outstanding claims (including IBNR) Provision for unearned premium Commission income unearned Deferred Liabilities Deferred taxation,226,895 3,66,239 7,366,574 2,254,708,50,063,56,899 26,079 2,433,04,226,895 2,93,29 8,02,7 2,260, ,86 745,483 75,479,464,778,728 Creditors and accruals Premium received in advance Amounts due to other insurers / reinsurers Accrued expenses Taxation provision less payments Sundry creditors Borrowings Short term finances secured Long term finances secured Other liabilities Unclaimed dividend Liabilities against assets subject to finance lease ,489 09,747 77,948 45,45,29,097,295, ,000 2,045,562 6,835 24, ,70 07, ,36 76,386 48,020 48,020 3,979 TOTAL LIABILITIES 5,8,380 2,389,89 TOTAL EQUITY AND LIABILITIES 8,066,088 4,650,626 CONTINGENCIES AND COMMITMENTS 9 Principal Officer and Chief Executive 6 HALF YEARLY REPORT JUNE206 IGI INSURANCE

8 as at June 30, 206 (Unaudited) Cash and bank deposits Cash and other equivalents Current and other accounts Deposits maturing within 2 months Note 0 Unaudited Audited June 30, 206 Dec. 3, ,76 3, , , ,74 Investments 5,00,724 2,325,078 Investment property 84,760 90,569 Deferred Taxation 00 Current assets others Premiums due but unpaid unsecured Amounts due from other insurers / reinsurers unsecured Accrued income on investments and deposits Reinsurance recoveries against outstanding claims Prepayments: prepaid reinsurance premium ceded others Taxation payments less provision Sundry receivables Fixed assets 2 600, ,389 6,59 823, ,24 36,634 22,76 2,55, ,83 402,885 7,343 39, ,744 20,26,80 0,673,547,062 Tangible Furniture, fixtures and office equipments Buildings Motor vehicles Capital workinprogress 3 45,565 03,76 82,749 8,2 240,24 47,88 08,448 62,558 28,887 Intangibles Computer software,22,856 TOTAL ASSETS 8,066,088 4,650,626 The annexed notes to 22 form an integral part of this unconsolidated condensed interim financial information. Principal Officer and Chief Executive IGI INSURANCE HALF YEARLY REPORT JUNE206 7

9 Unconsolidated Condensed Interim Profit and Loss Account for the quarter and half year ended June 30, 206 (Unaudited) Revenue account Net premium revenue Net claims Management Expenses Net commission Underwriting result Fire and Property Damage 20,695 (5,702) (32,45) 8,77 (54,705) Marine, aviation and Transport 53,65 (3,777) (,562),855 40,3 Motor 89,278 (9,49) (27,87) (7,09) 53,85 Health 37,442 (27,694) (7,696) (676),376 Miscellaneous Rupees in thousand 33,833 (2,565) (,92) (4,830) 4,57 Quarter Ended June 30, 206 June 30, 205 Aggregate Aggregate 334,863 (96,887) (90,78) (2,025) 45,70 285,04 (89,863) (93,783) 7,93 8,588 Investment income Rental income Return on bank balances Other income Financial charges General and administrative expenses Profit before taxation Taxation Profit after taxation Other comprehensive income comprehensive income Earnings per share basic and diluted (Rupees) (note 8) 809,058 5,543 (,463) 775 (32,360) (93,398) 733,325 (270,39) 463, ,006,040, ,875 2,826 (8,553) (52,94) 688,55 986,73,005,39 (34,56) 870, , Revenue account Net premium revenue Net claims Management Expenses Net commission Underwriting result Fire and Property Damage 4,70 (53,839) (62,076) 27,902 (46,32) Marine, aviation and Transport 2,32 (30,06) (22,492) 25,03 84,60 Motor 369,850 (7,89) (58,499) (38,667) 00,793 Health 66,867 (47,647) (2,20) (2,306) 4,704 Miscellaneous Rupees in thousand 72,29 (40,32) (20,08) (4,779) 7,200 Half year ended June 30, 206 June 30, 205 Aggregate Aggregate 662,679 (343,570) (75,295) 7,8 50,995 56,352 (32,474) (78,57) 42,895 04,256 Investment income Rental income Return on bank balances Other income Financial charges General and administrative expenses Profit before taxation Taxation Profit after taxation Other comprehensive income comprehensive income 783,864 0,4 2,940 3,660 (37,088) (35,840) 627, ,942 (294,2) 484,73 484,73 938,444,893 9,48 3,09 (23,952) (8,543) 847,279 95,535 (55,588) 795, ,947 Balance of unappropriated profit at the commencement of the period Profit after taxation Transferred from general reserve Final dividend for the year ended December 3, 205 at Rs. 4 per share (204: Rs. 3 per share) Balance of unappropriated profit at the end of the period Earnings per share basic and diluted (Rupees) (note 8) 2,93,29 484,73 736,37 (490,758) 3,66, ,88,47 795, ,069 (368,069) 730,0 795,947 2,677, The annexed notes to 22 form an integral part of this unconsolidated condensed interim financial information. Principal Officer and Chief Executive 8 HALF YEARLY REPORT JUNE206 IGI INSURANCE

10 Unconsolidated Condensed Interim Statement of Changes in Equity for the half year ended June 30, 206 (Unaudited) Issued, subscribed and paidup share capital Premium on issue of shares Reserves Capital reserves Reserve for bonus shares Other capital reserves Revenue reserves General reserve Unappropriated profits Balance as at January, 205 (audited),226,895 35,762 33,267 8,40,75,88,47,579,46 Profit after taxation for the half year ended June 30, , ,947 Other comprehensive income for the period comprehensive income for the half year ended June 30, , ,947 Transfer from general reserve to unappropriated profit (368,069) 368,069 Transactions with owners, recorded directly in equity Final dividend for the year ended December 3, 204 Rs. 3 per share (368,069) (368,069) Balance as at June 30, 205 (unaudited),226,895 35,762 33,267 8,033,682 2,677,48 2,007,024 Profit after taxation for the half year ended December 3, , ,099 Other comprehensive income for the period comprehensive income for the half year ended December 3, 205,99 499,090,99 499,090 Transactions with owners, recorded directly in equity Interim dividend for the year ended December 3, 205 Rs. 2 per share (245,379) (245,379) Balance as at December 3, 205 (audited),226,895 35,762 33,267 8,033,682 2,93,29 2,260,735 Profit after taxation for the half year ended June 30, ,73 484,73 Other comprehensive income for the period comprehensive income for the half year ended June 30, ,73 484,73 Transfer from general reserve to unappropriated profit (736,37) 736,37 Transactions with owners, recorded directly in equity Final dividend for the year ended December 3, 205 Rs. 4 per share Balance as at June 30, 206 (unaudited),226,895 35,762 33,267 7,297,545 (490,758) 3,66,239 (490,758) 2,254,708 The annexed notes to 22 form an integral part of this unconsolidated condensed interim financial information. Principal Officer and Chief Executive IGI INSURANCE HALF YEARLY REPORT JUNE206 9

11 Unconsolidated Condensed Interim Statement of Cash Flows OPERATING ACTIVITIES Unaudited Half Year ended June 30, 206 June 30, 205 a) Underwriting activities b) Premiums received Reinsurance premiums paid Claims paid Reinsurance and other recoveries received Commissions paid Commissions received Net cash generated from underwriting activities Other operating activities Income tax paid General management expenses paid Operating payments net Net cash used in other operating activities cash generated from all operating activities,347,40 (505,227) (386,236) 6,998 (05,36) 84, ,00 (6,290) (2,366) (46,532) (374,88) 277,83,68,28 (369,528) (50,33) 205,225 (79,54) 37,42 560,563 (9,790) (223,763) (2,98) (37,75) 242,82 INVESTMENT ACTIVITIES Profit / return received Dividends received Payments for investments Proceeds from disposal of investments Fixed capital expenditure Proceeds from disposal of fixed assets cash (used in) / generated from investing activities, ,928 (2,747,058) 60,962 (24,637),363 (,903,772) 38,20 602,733 (29,200) 499,55 (39,44) 8, ,749 FINANCING ACTIVITIES Dividends paid Financial charges paid Loan received cash generated from / (used in) financing activities (487,902) (37,088) 750, ,00 (359,984) (43,29) (675,000) (,078,275) Net cash (outflow) / inflow from all activities Cash at beginning of the period Cash at the end of the period (,400,949) 29,54 (,8,795) 44, , ,655 The annexed notes to 22 form an integral part of this unconsolidated condensed interim financial information. Principal Officer and Chief Executive 0 HALF YEARLY REPORT JUNE206 IGI INSURANCE

12 for the half year ended June 30, 206 (Unaudited) Unaudited Half Year ended June 30, 206 June 30, 205 Reconciliation to profit and loss account Operating cash flows Depreciation / amortisation Financial charges Gain on disposal of fixed assets Increase in assets other than cash Increase in liabilities Return on bank balances Dividend and other investment income Profit after tax 277,83 (26,843) (37,088) 3, ,73 (,52,09) 2,940 79, ,73 242,82 (24,49) (23,952) 2,98 89,7 (445,63) 9,48 944, ,947 Definition of cash Cash comprises of cash in hand and at banks, stamps in hand, short term placements with banks and short term running finance Cash for the purpose of statement of cash flows consists of: Cash and other equivalents stamps in hand Current and other accounts Current accounts PLS accounts Deposits maturing within 2 months 84,35 29,58 3,76 34, ,67 345,000 Short term finances (,295,562) (,8,795) 379,655 The annexed notes to 22 form an integral part of this unconsolidated condensed interim financial information. Principal Officer and Chief Executive IGI INSURANCE HALF YEARLY REPORT JUNE206

13 Unconsolidated Condensed Interim Statement of Premiums for the quarter and half year ended June 30, 206 (Unaudited) Business underwritten inside Pakistan For the quarter ended June 30, 206 Class Premiums written Unearned premiums reserve Opening Closing Premiums earned Reinsurance ceded Prepaid reinsurance premium ceded Opening Closing Reinsurance expense Net Premium Revenue Quarter ended June 30, 206 June 30, 205 Direct and facultative Fire and property damage 28, , ,293 27, , , ,578 96,654 20,695 23,663 Marine, aviation and transport 99,703 37,726 30,94 07,235 49,443 9,742 5,565 53,620 53,65 47,699 Motor 8,70 397, ,966 90,47 3,608 2,469,39 89,278 54,56 Health 65,769 59,263 87,590 37,442 37,442 26,540 Miscellaneous 08,828 20,866 50,856 78,838 52,90 77,724 85,629 45,005 33,833 32, ,406,050,774,56,899 63,28 356, ,30 553,24 296,48 334, ,04 For the half year ended June 30, 206 Class Premiums written Unearned premiums reserve Opening Closing Premiums earned Reinsurance ceded Prepaid reinsurance premium ceded Opening Closing Reinsurance expense Net Premium Revenue Half year ended June 30, 206 June 30, 205 Direct and facultative Fire and property damage 646, , , ,379 58, , , ,678 4,70 49,394 Marine, aviation and transport 234,405 24,623 30,94 228,834 9,052 3,25 5,565 6,702 2,32 02,65 Motor 474, ,85 388, ,8 4, ,469 2, , ,455 Health 04,49 50,038 87,590 66,867 66,867 5,375 Miscellaneous 208,68 07,264 50,856 65,026 08,485 70,04 85,629 92,897 72,29 58,477,668, ,483,56,899,257,224 84, , ,24 594, ,679 56,352 The annexed notes to 22 form an integral part of this unconsolidated condensed interim financial information. Principal Officer and Chief Executive 2 HALF YEARLY REPORT JUNE206 IGI INSURANCE

14 Unconsolidated Condensed Interim Statement of Claims for the quarter and half year ended June 30, 206 (Unaudited) Business underwritten inside Pakistan For the quarter ended June 30, 206 Class Claims paid Outstanding claims Opening Closing Claims expense Reinsurance and other recoveries received Reinsurance and other recoveries in respect of outstanding claims Opening Closing Reinsurance and other recoveries revenue Net claims expense Quarter ended June 30, 206 June 30, 205 Direct and facultative Fire and property damage 52,85 220, ,509 32,475 38,649 89, , ,773 5,702 52,242 Marine, aviation and transport 32,0 42,49 34,592 24,454 8,600 74,680 66,757 0,677 3,777 25,09 Motor 7,666 8,826 38,326 9, ,728 4, ,49 83,657 Health 25,427 3,443 33,70 27,694 27,694 9,844 Miscellaneous 25,093 87, ,926 9,62 8,45 6,20 32,302 78,597 2,565 9,0 207,02 70,24,50, ,95 75, , , ,064 96,887 89,863 For the half year ended June 30, 206 Class Claims paid Outstanding claims Opening Closing Claims expense Reinsurance and other recoveries received Reinsurance and other recoveries in respect of outstanding claims Opening Closing Reinsurance and other recoveries revenue Net claims expense Half year ended June 30, 206 June 30, 205 Direct and facultative Fire and property damage 69,259 27,48 489,509 34,620 5,0 84,48 420, ,78 53,839 55,46 Marine, aviation and transport 6,829 35,33 34,592 6,08 44,788 80,498 66,757 3,047 30,06 42,08 Motor 54,466 20,843 38,326 7, ,687 4, ,89 55,245 Health 48,643 34,706 33,70 47,647 47,647 4,84 Miscellaneous 52,039 35, , ,59 2,05 2,326 32, ,027 40,32 26, , ,86,50, ,483 6,998 39, , ,93 343,570 32,474 The annexed notes to 22 form an integral part of this unconsolidated condensed interim financial information. Principal Officer and Chief Executive IGI INSURANCE HALF YEARLY REPORT JUNE2063

15 Unconsolidated Condensed Interim Statement of Expenses for the quarter and half year ended June 30, 206 (Unaudited) Business underwritten inside Pakistan Class Commissions paid or payable For the quarter ended June 30, 206 Deferred commission Opening Closing Net commission expenses Other management expenses Underwriting expense *Commissions from reinsurers Net underwriting expense Quarter ended June 30, 206 June 30, 205 Direct and facultative Fire and property damage 30,388 30,388 32,45 62,803 39,05 23,698 4,227 Marine, aviation and transport 0,607 0,607,562 22,69 22,462 (293) 2,666 Motor 7,09 7,09 27,87 44,278 44,278 52,275 Health ,696 8,372 8,372,933 Miscellaneous 3,45 3,45,92 25,066 8,35 6,75 5,489 7,907 7,907 90,78 62,688 69,882 92,806 76,590 Class Commissions paid or payable For the half year ended June 30, 206 Deferred commission Opening Closing Net commission expenses Other management expenses Underwriting expense *Commissions from reinsurers Net underwriting expense Half year ended June 30, 206 June 30, 205 Direct and facultative Fire and property damage 44,60 44,60 62,076 06,236 72,062 34,74 8,87 Marine, aviation and transport 9,545 9,545 22,492 42,037 44,576 (2,539) 3,6 Motor 38,675 38,675 58,499 97, ,66 95,968 Health 2,306 2,306 2,20 4,56 4,56 8,068 Miscellaneous 2,959 2,959 20,08 4,977 7,80 24,797 20,283 26,645 26,645 75,295 30,940 33,826 68,4 35,622 * Commissions from reinsurers is arrived after taking impact of opening and closing unearned commission. The annexed notes to 22 form an integral part of this unconsolidated condensed interim financial information. Principal Officer and Chief Executive 4 HALF YEARLY REPORT JUNE206 IGI INSURANCE

16 Unconsolidated Condensed Interim Statement of Investment Income for the quarter and half year ended June 30, 206 (Unaudited) Note Quarter Ended Half year ended June 30, 206 June 30, 205 June 30, 206 June 30, 205 Income from nontrading investments Held to maturity Return on government securities 3,954 3,956 7,906 7,902 Dividend income on available for sale investments 4 444, , ,356 42,535 Dividend income on investment in associates 4 330,572 90,98 330,572 90,98 (Provision) / reversal of provision for diminution in value of investments 22,68 45,908 (,42) (6,53) Gain on sale of available for sale investments 5 0, ,76 0, ,76 Less: Investment related expenses (3,746) (4,809) (7,520) (6,439) Net investment income 809,058,040,55 783, ,444 The annexed notes to 22 form an integral part of this unconsolidated condensed interim financial information. Principal Officer and Chief Executive IGI INSURANCE HALF YEARLY REPORT JUNE2065

17 Notes to and forming part of the Unconsolidated Condensed Interim Financial Information (unaudited). STATUS AND NATURE OF BUSINESS IGI Insurance Limited ("the Company"), a Packages Group Company, was incorporated as a public limited company in 953 under Companies Ordinance, 984 and is quoted on the Pakistan Stock Exchange Limited (formerly Karachi Stock Exchange Limited) and is engaged in providing general insurance services in spheres of Fire, Marine, Motor, Health and Miscellaneous. The registered office of the Company is situated at 7th floor, The Forum, Suite No. 7073, G20, Block 9, KhayabaneJami, Clifton, Karachi. During the preceding year, the Board of s of the Company passed a resolution to commence Window Takaful Operations under the provisions of Takaful Rules, 202. In this regard, during the period, the Company held an Extra Ordinary General Meeting (EOGM) in which the shareholders have approved amendment in Memorandum of Association of the Company and the same amendment has been approved by Securities and Exchange Commission of Pakistan. The Company intends to complete other legal formalities in this respect in the second half of year ending December 3, STATEMENT OF COMPLIANCE This unconsolidated condensed interim financial information has been prepared in accordance with the requirements of the International Accounting Standard 34 'Interim Financial Reporting', provisions of the Companies Ordinance, 984, the Insurance Ordinance, 2000, the SEC (Insurance) Rules, 2002 and directives issued by the Securities and Exchange Commission of Pakistan (SECP). In case where the requirements differ, the provisions of the Companies Ordinance 984, the Insurance Ordinance, 2000, the SEC (Insurance) Rules, 2002 and the said directives prevail. 3. BASIS OF PRESENTATION This unconsolidated condensed interim financial information is unaudited and is being submitted to the shareholders in accordance with the listing regulations of Pakistan Stock Exchange and section 245 of the Companies Ordinance, 984. This unconsolidated condensed interim financial information of the Company has been prepared in accordance with the approved accounting standards as applicable in Pakistan for interim financial reporting. This unconsolidated condensed interim financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company's annual financial statements for the year ended December 3, 205. This unconsolidated condensed interim financial information is the separate financial information of the Company in which investment in subsidiary is carried at cost and is not consolidated. The consolidated condensed interim financial information is being issued separately. 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies and methods of computation adopted in the preparation of this unconsolidated condensed interim financial information are the same as those applied in the preparation of the annual financial statements for the year ended December 3, SIGNIFICANT ESTIMATES AND JUDGEMENT The preparation of the unconsolidated condensed interim financial information requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. In preparing this unconsolidated condensed interim financial information, the significant judgments made by management in applying the Company's accounting policies and the key sources of estimating uncertainty were the same as those applied to the annual financial statements for the year ended December 3, FINANCIAL AND INSURANCE RISK MANAGEMENT The financial and insurance risk management objectives and policies are consistent with those disclosed in the annual financial statements of the Company for the year ended December 3, HALF YEARLY REPORT JUNE206 IGI INSURANCE

18 for the quarter and half year ended June 30, PREMIUM DEFICIENCY RESERVE There is no material movement in the amount of premium deficiency reserve recognised as at December 3, BORROWINGS 8. Short term credit facilities available from various commercial banks under markup arrangements amounting to Rs. 3,550 million (205: Rs. 2,250 million). The rates of markup on these facilities range from 6.22% to 7.92% per annum (205: 6.70% to 7.85% per annum) and are payable latest by July 5, 206. These facilities are secured against pledge of shares held by the Company. 8.2 The Company obtained a long term finance facility amounting to Rs.,000 million during 205 for the purpose of equity investment in Packages Construction Limited, out of which Rs. 750 million was availed during the half year ended June 30, 206. The rate of markup on this facility is 6.72% per annum (205: Nil). Principal repayment is to be made in 6 equal semiannual installments and will be due after 30th month of the drawdown date. The first disbursement was on May 26, 206. This facility is secured against pledge of shares held by the Company. 9. CONTINGENCIES TAXATION There is no material change in the status of contingencies as disclosed in the annual financial statements of the Company for the year ended December 3, 205 except for the following; In case of tax year 200, the Additional Commissioner Inland Revenue (ACIR) passed an amended assessment order under section 22(5A) of the Income Tax Ordinance, 200 (the Ordinance) wherein tax on dividend and property income was charged at corporate tax rate by treating such income as business income of the Company under Fourth Schedule to the Ordinance. Further, the ACIR had disallowed provision of IBNR under section 34(3) of the Ordinance. As a result of the amended assessment demand of Rs million was created. The Company filed appeal and application for stay of tax demand before the CIR(A) against the above assessment order. The Company also filed a petition against the said order before the Honorable Sindh High Court which was referred back by the Honorable Sindh High Court to the CIR(A). Pursuant to appeal, the learned CIR(A) vide combined appellate dated March 0, 206 decided all issues in favor of the Company. The tax department has filed further appeal before the Appellate Tribunal Inland Revenue (ATIR) in respect of the issues on which relief was allowed by the CIR(A). In case of tax year 20, the Additional Commissioner Inland Revenue (ACIR) passed an amended assessment order under section 22(5A) of the Ordinance wherein tax on dividend and property income was charged at corporate tax rate by treating such income as business income of the company under Fourth Schedule to the Ordinance. Further, the ACIR had also disallowed provision of IBNR, claim of brought forward loss for the tax year 2008 and Workers Welfare 2% of the accounting profit for the year had also been levied. Moreover, the ACIR had also disallowed refund adjustments for tax years 2004 and 2009 in the amended assessment order. As a result of the amended assessment demand of Rs million was created. The Company filed appeal and application for stay of tax demand before the CIR(A) against the above assessment order. The Company also filed a petition against the said order before the Honorable Sindh High Court which was referred back by the Honorable Sindh High Court to the CIR(A). Pursuant to appeal, the learned CIR(A) vide combined appellate dated March 0, 206 decided issues pertaining to chargeability of tax on dividend and property income, provision of IBNR and levy of Workers' Welfare Fund in favor of the Company. As regards, credit / adjustment of refunds available to the Company, the CIR(A) has remanded back the issue with the directions to verify the claim of refunds and allow the adjustment as per law. The tax department has filed further appeal before the Appellate Tribunal Inland Revenue (ATIR) in respect of the issues on which relief was allowed by the CIR(A). In case of tax year 202, subsequent to period end, the Additional Commissioner Inland Revenue (ACIR) has passed an amended assessment order under section 22(5A) of the Income Tax Ordinance, 200 (the Ordinance) wherein tax on dividend and property income was charged at corporate tax rate (i.e. 35% for the year) by treating such income as business income of the Company under Fourth Schedule to the Ordinance. Further, the ACIR had disallowed provision of IBNR under section 34(3) of the Ordinance. As a result of the amended assessment demand of Rs million has been created. The Company is in process of filing an appeal and application for stay of tax demand before the CIR(A) against the above assessment order. In case of tax year 203, the Additional Commissioner Inland Revenue (ACIR) has passed an amended assessment order under section 22(5A) of the Income Tax Ordinance, 200 (the Ordinance) wherein tax on dividend and property income was charged at corporate tax rate (i.e. 35% for the year) by treating such income as business income of the Company under Fourth Schedule to the Ordinance. Further, the ACIR has also disallowed provision of IBNR, claim of brought forward loss for the tax year 202 and has also made an addition on account of disposal of fixed assets at less than Fair Market Value (FMV) in the amended assessment order. As a result of the amended assessment, demand of Rs million was created. The Company has obtained stay order from the Honorable Sindh High Court in respect of the above tax demand. Further, against the aforesaid order, the Company has filed an appeal before CIR(A) which is pending adjudication. IGI INSURANCE HALF YEARLY REPORT JUNE2067

19 Notes to and forming part of the Unconsolidated Condensed Interim Financial Information (unaudited) In case of tax year 205, the Assistant Commissioner Inland Revenue (ACIR) has passed an order under section 22 of the Ordinance charging Super tax under section 4B amounting to Rs million. The Company has written a letter to ACIR to adjust the aforesaid demand against the refunds for the tax years 2008 and 202 amounting to Rs million and Rs million respectively, however no adjustment has been made todate. Further, the Company filed an application with the ACIR requesting to annul the order based on various legal grounds, however, no order has yet been passed in this regard. Moreover, the Company has also filed an appeal before the CIR(A) in respect of the order passed under section 22 of the Ordinance, which is pending adjudication. The management and tax advisor of the Company are confident that the above matters will be decided in the Company's favor. Accordingly, no provision has been recognised in this unconsolidated condensed interim financial information. 0. CURRENT AND OTHER ACCOUNTS This includes Rs. 50 million (December 3, 205: Nil) placed with a shariah compliant financial institution.. INVESTMENTS The investments comprise of the following: Note Unaudited Audited June 30, 206 Dec. 3, 205 Investment in Subsidiary IGI Life Insurance Company Limited. 858,83 858,83 Investment in associate Quoted Unquoted Held to maturity Government securities. &.2. 5,54, ,000 6,29,706 24,806 3,873,03 3,873,03 24,558 Available for sale Quoted Unquoted. &.2 7,69,69 5,762 7,735,38 7,352,894 5,764 7,468,658 5,00,724 2,325,078. Market value of investments as at June 30, 206 is Rs. 53,9 million (December 3, 205: Rs. 54,774 million) These include investments amounting to Rs.,920 million (December 3, 205: Rs. 0,222 million) in shares of listed companies appearing on the All Share Islamic index. SUNDRY RECEIVABLES Advances considered good Security deposits (Payable to) / Receivable from defined benefit plan Agent balances Sales tax receivable Salvage recoverable Others Unaudited Audited June 30, 206 Dec. 3, 205 6,65 20,56 (5,907) 3 7,64 25,600 48,552 22,76 4,688 38, ,357 7,900 40,248 0,673 8 HALF YEARLY REPORT JUNE206 IGI INSURANCE

20 for the quarter and half year ended June 30, FIXED ASSETS Tangible Opening book value Add: Additions during the period / year Less : Net book value of assets disposed of / transferred during the period / year Depreciation for the period / year Capital work in progress 28,887 42,327 26,24 7,99 2,265 29,84 232,030 8,2 240,24 235,856 7, ,640 50,00 38,653 88,753 28,887 28,887 Unaudited Unaudited Half year ended June 30, 206 June 30, DIVIDEND INCOME Subsidiary IGI Life Insurance Limited 40,987 Associate Packages Limited 330,572 90,98 Quoted Shares Nestle Pakistan Limited Tri Pack Films Limited Sanofi Aventis Pakistan Limited Systems Limited International Industries Limited Siemens Pakistan Engineering Company Limited Mitchell's Fruit Farms Limited 392,820 6,767 5,525 5, ,820 2,892 3, ,464 Unquoted Shares Techlogix International Limited Others , , GAIN ON SALE OF AVAILABLE FOR SALE INVESTMENTS This includes realised gain of Rs million earned on sale of securities appearing under conventional mode. IGI INSURANCE HALF YEARLY REPORT JUNE2069

21 Notes to and forming part of the Unconsolidated Condensed Interim Financial Information (unaudited) 6. TRANSACTIONS WITH RELATED PARTIES Related parties comprise of subsidiary, related group companies, directors of the Company, key management personnel, major shareholders, post employment benefit plans and other related parties. The Company in the normal course of business carries out transactions with various related parties at agreed / commercial terms and conditions. Amounts due to / from and other significant transactions, other than those disclosed else where in this condensed interim financial information, are as follows: Subsidiary Associate Post employment benefit plans Key management personnel (including directors) Other related parties for the half year ended June 30, 206 June 30, 205 June 30, 206 June 30, 205 June 30, 206 June 30, 205 June 30, 206 June 30, 205 June 30, 206 June 30, 205 Transactions Premium Underwritten Premium Collected Claims Expense Commission Expense Commission Paid Rental Income Fixed Assets Disposed Dividend Received Dividend Paid Key Management Personnel Compensation Investment / (Disinvestment) in Shares Net of Provision for Impairment Brokerage Commission Charge in respect of Gratuity Fund Charge in respect of Provident Fund Contribution to Gratuity Fund Contribution to Provident Fund Charge for Administrative Services Medical Insurance Premium Paid 2,727 2, ,264 40,987 2,90 2,930,677, ,985 4,000 3,376 62,855 76,654 28,825 3,904 2, ,572 52,088 2,48,674 8,443 63,728 86,4,825 4,07 3, ,98 39,066 (60,53) 0,242 5,25 3,957 4,473 3,84 4,705 3,595, ,54 49, ,68 07,282 27,344 39, ,232 46,827 0,769 8,347,76 6, ,625 44, ,288,247 0,489 5,998, ,907 Subsidiary Associate Post employment benefit plans as at Key management personnel (including directors) Other related parties June 30, 206 Dec. 3, 205 June 30, 206 Dec. 3, 205 June 30, 206 Dec. 3, 205 June 30, 206 Dec. 3, 205 June 30, 206 Dec. 3, 205 Balances Premium Receivable, ,945 4, ,524 23,638 Commission Payable 2,779,07 8,087 4,06 Investment in Shares 858,83 858,83 6,29,706 3,873,03 564,60 264,985 Other Receivable 0,084 2,685 24,55 23,296 9,355 6,045 (Payable to)/ Receivable from Gratuity Fund (5,907) 378 (Payable to)/ Receivable from Provident Fund (,939) (,67) 20 HALF YEARLY REPORT JUNE206 IGI INSURANCE

22 for the quarter and half year ended June 30, SEGMENT REPORTING There is no change in the basis of segmentation or the measurement basis of segment profit or loss since December 3, 205. Class of business wise revenue and results have been disclosed in the unconsolidated condensed interim statement of premiums and profit and loss account, respectively, prepared in accordance with the requirement of Insurance Ordinance, 2000 and the SEC (Insurance) Rules, Segment wise assets as at June 30, 206 are as follows: June 30, 206 Unaudited Dec. 3, 205 Audited Segment assets Unallocated assets assets Segment assets Unallocated assets assets Fire and property damage Marine, aviation and transport Motor Health Miscellaneous Unallocated,282,020 23,464 38,93 66, ,666 2,438,500 5,627,588 5,627,588,282,020 23,464 38,93 66, ,666 5,627,588 8,066, ,645 29,7 239,840 37, ,068,486,247 3,64,379 3,64, ,645 29,7 239,840 37, ,068 3,64,379 4,650,626 June 30, 206 Unaudited Dec. 3, 205 Audited Segment liabilities Unallocated liabilities liabilities Segment liabilities Unallocated liabilities liabilities Fire and property damage Marine, aviation and transport Motor Health Miscellaneous Unallocated,386, , ,438 69, ,667 3,259,72 2,552,208 2,552,208,386, , ,438 69, ,667 2,552,208 5,8,380 77,43 244, ,770 08, ,27 2,057, , ,597 77,43 244, ,770 08, ,27 332,597 2,389,89 7. Segment wise financial performance for the half year ended June 30, 206 has been detailed in the unconsolidated condensed interim profit and loss account. IGI INSURANCE HALF YEARLY REPORT JUNE2062

23 Notes to and forming part of the Unconsolidated Condensed Interim Financial Information (unaudited) 8. EARNINGS PER SHARE Basic / diluted earnings per share Profit for the period Unaudited Unaudited Half Year Ended Quarter Ended June 30, 206 June 30, 205 June 30, 206 June 30, ,73 795, , ,803 (Number of Shares) Weighted average number of ordinary shares 22,689,532 22,689,532 22,689,532 22,689,532 (Rupees) Earnings per share FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES The table below analyses financial instruments carried at fair value. The different levels have been defined as follows: Level : quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: inputs other than quoted prices included within Level that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices). The Company has no items to report in this level. Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). The Company has no items to report in this level. The carrying amounts of all other financial assets and liabilities reflected in the financial statements approximate their fair values. In case of available for sale investments, the equity securities are carried at lower of cost or market value in line with the requirements of the S.R.O. 938 issued by the Securities and Exchange Commission of Pakistan. 20. CORRESPONDING FIGURES Corresponding figures have been rearranged and reclassified, wherever necessary, for the purpose of comparison. There have been no significant reclassifications in this unconsolidated condensed interim financial information. 2. DATE OF AUTHORISATION FOR ISSUE This unconsolidated condensed interim financial information was authorised for issue by the Board of s of the Company on August 25, GENERAL Figures in this unconsolidated condensed interim financial information have been rounded off to the nearest thousand of rupees. Principal Officer and Chief Executive 22 HALF YEARLY REPORT JUNE206 IGI INSURANCE

24

25 s report to the shareholders on consolidated condensed interim financial information I am pleased to present the consolidated condensed interim financial information (unaudited) of IGI Insurance Limited and its subsidiary, IGI Life Insurance Limited for the half year ended June 30, 206. The consolidated condensed interim financial information reflects Rs (June 30, 205: Rs.9.40) earnings per share for the period under review. We cherish the support and patronage of our business partners and all stakeholders and appreciate the dedicated and sincere efforts of our employees. For and on behalf of the Board Syed Babar Ali Lahore : August 25, HALF YEARLY REPORT JUNE206 IGI INSURANCE

26 Consolidated Condensed Interim Financial Information for the Half Year Ended June 30, 206

27 Consolidated Condensed Interim Balance Sheet Share capital and reserves Authorized share capital [200,000,000 (December 3, 205: 200,000,000) Ordinary shares of Rs.0/ each] Note Unaudited Audited June 30, 206 Dec. 3, 205 2,000,000 2,000,000 Issued, subscribed and paid up share capital Unappropriated profit Reserves Equity attributable to the equity holders of the parent Noncontrolling interest TOTAL EQUITY,226,895 5,020,94 7,366,574 3,63, ,54 3,865,87,226,895 3,889,986 8,02,7 3,29, ,766 3,475,358 Balance of statutory funds 3,755,085,504,253 Deferred liabilities Deferred taxation 469,34 25,328 Underwriting provisions Provision for outstanding claims [including IBNR] Provision for unearned premium Commission income unearned Creditors and accruals Premium received in advance Amounts due to other insurers / reinsurers Experience refund payable Accrued expenses Sundry creditors,36,39,56,899 26,079 2,644,369 82,52 667,048 49,95 8, ,729,760, , ,483 75,479,679,809 69, ,028 39,576 29,05 565,263,24,728 Borrowings Short term finance secured Long term finance secured Other liabilities Unclaimed dividend Liabilies against assets subject to finance lease,295, ,000 2,045,562 7,0 28,344 48,020 48,020 4,006 TOTAL LIABILITIES 20,720,307 4,839,44 TOTAL EQUITY AND LIABILITIES CONTINGENCIES AND COMMITMENTS 9 34,586,24 28,34,502 Principal Officer and Chief Executive 26 HALF YEARLY REPORT JUNE206 IGI INSURANCE

28 for the half year ended June 30, 206 (Unaudited) Note Unaudited Audited June 30, 206 Dec. 3, 205 Cash and bank deposits Cash and other equivalents Current and other accounts Deposits maturing within 2 months, ,76 890, , , ,376 Loans secured against life insurance policies 52,338 46,947 Loans secured against other assets To employees To agents Investments Investment property 0 29,578,803 84,760 24,328,25 90,569 Current assets others Premiums due but unpaid Amounts due from other insurers / reinsurers unsecured Accrued income on investments and deposits Reinsurance recoveries against outstanding claims Prepayments: prepaid reinsurance premium ceded others Taxation payments less provision Experience refund receivable Sundry receivables 706,08 372, , , ,24 7,794 79,805 3, ,73 3,34, ,39 422,023 42,599 39, ,744 42,086 20,668 9,029 76,639 2,404,766 Fixed assets Tangible Furniture, fixtures and office equipment Building Motor vehicles Capital work in progress 72,089 4,69 2,045 2,007 39,760 74,058 20,252 89,36 7,938 29,384 Intangibles 44,40 5,60 TOTAL ASSETS 34,586,24 28,34,502 The annexed notes to 7 form an integral part of this condensed interim consolidated financial information. Principal Officer and Chief Executive IGI INSURANCE HALF YEARLY REPORT JUNE20627

29 Consolidated Condensed Interim Profit and Loss Account for the quarter and half year ended June 30, 206 (Unaudited) NONLIFE INSURANCE LIFE INSURANCE Fire and property damage Marine, aviation and transport Motor Health Miscellaneous Life participating Life nonparticipating Individual Group Investment linked business Accident and health business Individual Group Pension business fund Individual family Takaful window Group family Group health Quarter ended June 30, 206 June 30, 205 Aggregate Aggregate Restated Revenue account Net premium revenue Net claims Expenses Net commission Net investment income statutory fund Other incomenet Add: Policyholders' liabilities at the beginning of the period Less: Policyholders' liabilities at the end of the period Surplus of policyholder funds Underwriting result 20,695 (5,652) (32,45) 8,77 (54,655) 53,6 (3,777) (,562),855 40,27 89,278 (90,954) (27,87) (7,09) 54,046 37,442 (27,694) (6,884) (676) 2,88 33,830 (2,565) (,92) (4,830) 4,54 2,990 (22,444) (436) (,363) 45,28,979,58,343 (,68,05) (26,335) 238,354 (64,940) (4,244) (38,280) 38,583 5,45 4,728,280 (4,845,393) 47,8 30,245 (26,28) (0,334) 787 8, ,729 (83,942) 9,502,640,69 (497,08) (28,982) (02,400) 84,44,20 5,436,709 (6,677,303) (43,20),240 (2,593) (,477) (4,094), ,368 (,433) (3,437) 30,909 (38,502) (23,0) (2,7) 9,393 6, ,438 (275,47) 2,04 2,763 (66,96) 2, ,996 (43,79) 6 34,986 (3,48) (2,085) (56,457) 2, ,308 (25,508) (4,569) 78 (3) 428 (600) (25),828 (3) (329) 2,27 (4,092) (379) 2,528,968 (,8,90) (80,538) (26,363) 392,09 5,620,893,86 (3,234,882) (26,335) 54,87,577,46 (806,288) (200,074) (22,457) 374,427 5,28 9,609,726 (0,243,802) (32,362) 72,759 Investment income Rental income Return on bank balances Other income Financial charges General and administrative expenses Share of profit of associate Profit before taxation Taxation Profit after taxation Other comprehensive income not reclassifiable to profit and loss Share of other comprehensive income of associate comprehensive income Profit attributable to: Equity holders of the parent Noncontrolling interest Earnings per share basic and diluted (Rupees) (note 4) 468,68,073 (652) 768 (32,360) (98,536) 338,974 50,00 894,26 (432,693) 46,568 6, , ,97 3, (Rupees) 866, ,350 2,826 (8,553) (55,743) 80,88 290,29,73,868 (33,729),040,39 (3,320),036,89,032,60 4, NONLIFE INSURANCE LIFE INSURANCE Revenue account Net premium revenue Net claims Expenses Net commission Net investment income statutory fund Other incomenet Add: Policyholders' liabilities at the beginning of the period Less: Policyholders' liabilities at the end of the period Surplus of policyholder funds Underwriting result Fire and property damage 4,66 (53,789) (62,076) 27,902 (46,347) Marine, aviation and transport 2,26 (30,06) (22,492) 25,03 84,604 Motor 367,703 (7,604) (58,499) (38,667) 98,933 Health 66,867 (47,647) (0,020) (2,306) 6,894 Miscellaneous 7,640 (40,32) (20,08) (4,779) 6,7 Life participating 25,766 (38,539) (,376) (,767) 85,022 4,3,40,823 (,68,05) (46,045) Life nonparticipating Individual 42,740 (276,557) (45,746) (63,454) 257,89 9,593 4,623,900 (4,845,393) 8,272 Group 9,63 (54,069) (9,445) (286) 3, ,789 (83,942) 7,252 Investment linked business 2,520,33 (939,073) (66,050) (54,56) 348,55 3,735 4,878,865 (6,677,303) (85,90) Accident and health business Individual 2,490 (4,766) (5,09) (6,548) 2, ,027 (,433) (6,69) Group 395,620 (246,760) (43,273) (5,705) 4,66,43 76,39 (275,47) 6,435 Pension business fund 4,62 (66,96) 5, ,599 (43,79) 352 Individual family 9,56 (4,428) (22,433) (78,680) 2, ,772 (25,508) (3,492) Takaful window Group family 389 (50) (4) 278 (600) (24) Group health 2,747 (220) (39),65 (4,092) (305) Half year ended June 30, 206 June 30, 205 Aggregate Aggregate 4,36,830 (,973,89) (376,59) (34,252) 728,42 29,945,030,095 (3,234,882) (46,045) 59,693 Restated 2,50,502 (,728,5) (38,267) (290,874) 672,773 29,890 9,594,542 (0,243,802) (35,085) 9,69 Investment income Rental income Return on bank balances Other income Financial charges General and administrative expenses Share of profit of associate Profit before taxation Taxation Profit after taxation Other comprehensive income not reclassifiable to profit and loss Share of other comprehensive income of associate comprehensive income comprehensive income attributable to: Equity holders of the parent Noncontrolling interest Earnings per share basic and diluted (Rupees) (note 4) The annexed notes to 7 form an integral part of this condensed interim consolidated financial information. 488,92 2,47 4,64 3,660 (37,088) (45,848) 36,433 97,494,393,620 (527,504) 866,6 24,4 890, ,829 5, (Rupees) 852,20,893,6 3,09 (23,952) (9,275) 753, ,033,355,249 (202,578),52,67 (4,57),48,54,40,628 7, Principal Officer and Chief Executive 28 HALF YEARLY REPORT JUNE206 IGI INSURANCE

30 Consolidated Condensed Interim Statement of Changes in Equity for the half year ended June 30, 206 (Unaudited) Issued, subscribed and paidup share capital Premium on issue of shares Reserves Capital reserves Reserve for bonus shares Other capital reserves Revenue reserves General reserve Capital contributed to statutory funds Unappropriated Profits Equity attributable to equity holders of the parent Noncontrolling interest Balance as at January 0, 205 (audited),226,895 35,762 33,267 8,40,75 2,220,320,97, ,285 2,324,280 Transfer from general reserve to unappropriated profit (368,069) 368,069 Transactions with owners, recorded directly in equity Further acquisition of shares of IGI Life Insurance Limited Final dividend for the year ended December 3, 204 Rs. 3 per share 40,9 (368,069) 40,9 (368,069) (69,04) (28,985) (368,069) Profit after taxation for the half year ended June 30, 205 (restated),44,785,44,785 7,886,52,67 Other comprehensive income for the period Share of other comprehensive income of associate net of tax comprehensive income for the half year ended June 30, 205 (restated) (4,57),40,628 (4,57),40,628 7,886 (4,57),48,54 Balance as at June 30, 205 (restated),226,895 35,762 33,267 8,033,682 3,40,067 2,730, ,067 2,975,740 Profit after taxation for the half year ended December 3, 204 (restated) 8,924 8,924 0, ,623 Other comprehensive income recalssifiable to profit and loss Share of other comprehensive income of associate net of tax (67,90) (67,90) (67,90) Other comprehensive income not recalssifiable to profit and loss Share of other comprehensive income of associate net of tax Remeasurement of post employment benefit obligations net of tax comprehensive income for the half year ended December 3, 205 (restated) (,76),99 (9,725) 734,298 (,76),99 (9,725) 734,298 0,699 (,76),99 (9,725) 744,997 Transactions with owners, recorded directly in equity Interim dividend for the year ended December 3, 205 Rs. 2 per share (245,379) (245,379) (245,379) Balance as at December 3, 205 (audited),226,895 35,762 33,267 8,033,682 3,889,986 3,29, ,766 3,475,358 Transactions with owners, recorded directly in equity Final dividend for the year ended December 3, 205 Re. 4 per share (490,758) (490,758) (490,758) Profit after taxation for the half year ended June 30, ,75 860,75 5,40 866,6 Other comprehensive loss for the period comprehensive income for the half year ended June 30, ,4 884,829 24,4 884,829 5,40 24,4 890,230 Dividend by subsidiary company attributable to noncontrolling interest (9,03) (9,03) Transfer from general reserve to unappropriated profit (245,379) 245,379 Transfer from general reserve to unappropriated profit (490,758) 490,758 Capital contribution from statutory fund during the period Balance as at June 30, 206,226,895 35,762 33,267 7,297,545 5,020,94 3,63, ,54 3,865,87 The annexed notes to 7 form an integral part of this condensed interim consolidated financial information. Principal Officer and Chief Executive IGI INSURANCE HALF YEARLY REPORT JUNE20629

31 Consolidated Condensed Interim Statement of Cash Flows Half Year ended OPERATING ACTIVITIES a) Underwriting activities Premiums received Reinsurance premiums paid Claims paid Surrenders paid Reinsurance and other recoveries received Commissions paid Commissions received Net cash generated from underwriting activities June 30, 206 June 30, 205 Restated 5,207,03 (547,825) (728,458) (,29,795) 42,359 (357,47) 20,362 2,625,509 3,254,989 (460,022) (799,705) (,27,927) 225,693 (300,357) 69, ,95 b) Other operating activities Income tax paid General management expenses and operating payments net Loans advanced Inter fund transactions Loan repayments received Net cash used in other operating activities cash generated from / (used in) operating activities INVESTMENT ACTIVITIES Profit / return received Dividends received Payments for investments Proceeds from redemption of investments Fixed capital expenditure Capital work in progress Proceeds from disposal of fixed assets cash (used in) / generated from investing activities FINANCING ACTIVITIES Dividends paid Financial charges paid Loan repaid cash used in financing activities Net cash generated from all activities Cash at the beginning of the period Cash at the end of the period (78,835) (565,448) (5,39) (3) 55 (749,622),875, ,78 766,53 (8,82,24) 4,295,339 (39,449) (4,858),700 (3,49,25) (496,667) (37,088) 750,000 26,245 (,057,9) 652,356 (404,763) (45,670) (52,626) (48,233) 48,64 (667,365) 294, , ,733 (,46,37) 998,7 (53,308) (355) 0,8 622,773 (359,984) (43,29) (675,000) (,078,275) (60,672) 83,967 67,295 The annexed notes to 7 form an integral part of this condensed interim consolidated financial information. Principal Officer and Chief Executive 30 HALF YEARLY REPORT JUNE206 IGI INSURANCE

32 for the half year ended June 30, 206 (Unaudited) Half Year ended June 30, 206 June 30, 205 Restated Reconciliation to profit and loss account Operating cash flows Depreciation / amortisation Financial charges Gain on disposal of fixed assets Increase in assets other than cash Increase in liabilities,875,887 (39,746) (37,088) 3,755,080,843 (4,22,037) 294,830 (34,435) (23,952) 5,037 84,464 (,68,824) Others Surplus of statutory funds Dividend and other investment income Share of profit of associates Return on bank balances Profit after taxation (54,943),237,30 97,494 4,64 866,6 (47,49),548, ,033,6,52,67 Definition of cash Cash comprises of cash in hand and at banks, stamps in hand, short term placements with banks and short term finance Cash for the purpose of statement of cash flows consists of: Cash and other equivalents Current and other accounts Deposits maturing within 2 months Short term finance, ,76 (,295,562) (404,763) 2, , ,000 67,295 The annexed notes to 7 form an integral part of this condensed interim consolidated financial information. Principal Officer and Chief Executive IGI INSURANCE HALF YEARLY REPORT JUNE2063

33 Consolidated Condensed Interim Statement of Premiums for the quarter and half year ended June 30, 206 (Unaudited) Business underwritten inside Pakistan Premiums written Unearned premiums reserve Opening Closing For the quarter ended June 30, 206 Prepaid reinsurance Premiums Reinsurance premium ceded earned ceded Opening Closing Reinsurance expense Net premium revenue Quarter ended June 30, 206 June 30, 205 NonLife Insurance: Direct and facultative Fire and property damage Marine, aviation and transport Motor Health Miscellaneous 28,396 99,699 8,70 65,769 08, ,246 37, ,673 59,263 20, ,293 30,94 388,966 87,590 50,856 27,349 07,23 90,47 37,442 78, ,005 49,443 52,90 392,227 9,742 3,608 77, ,578 5,565 2,469 85,629 96,654 53,620,39 45,005 20,695 53,6 89,278 37,442 33,830 23,609 47,683 53,263 26,540 32, ,399,050,774,56,899 63, , ,30 553,24 296,48 334, ,367 Life Insurance Conventional: Life participating Life nonparticipating (individual) Life nonparticipating (group) Investment linked business Accident and health (individual) Accident and health (group) Pension business fund 5, ,695 50,647,645,834 4,780 30,982 2,763 5, ,695 50,647,645,834 4,780 30,982 2,763 2,042 9,34 20,402 5,25 3, ,042 9,34 20,402 5,25 3, , ,354 30,245,640,69,240 30,909 2,763 4, ,876 39, ,00 4,669 96,679 34,289 Life Insurance Takaful: Individual family Group family Group health 35,34 78,828 35,34 78, ,986 78,828 2,235,053 2,235,053 40,94 40,94 2,94,2,294,094 Grand total 2,972,452,050,774,56,899 2,866, , ,30 553,24 337,359 2,528,968,577,46 Premiums written Unearned premiums reserve Opening Closing For the half year ended June 30, 206 Prepaid reinsurance Premiums Reinsurance premium ceded earned ceded Opening Closing Reinsurance expense Net premium revenue Half Year ended June 30, 206 June 30, 205 NonLife Insurance: Direct and facultative Fire and property damage Marine, aviation and transport Motor Health Miscellaneous 646, , ,22 04,49 208,29 276,743 24, ,85 50,038 07, ,293 30,94 388,966 87,590 50, , , ,97 66,867 64,537 58,947 9,052 4,558 08, ,309 3, ,04 449,578 5,565 2,469 85, ,678 6,702 2,268 92,897 4,66 2,26 367,703 66,867 7,640 49,340 02, ,202 5,375 58,26,665,93 745,483,56,899,254,497 84, , ,24 594, , ,678 Life Insurance Conventional: Life participating Life nonparticipating (individual) Life nonparticipating (group) Investment linked business Accident and health (individual) Accident and health (group) Pension business fund 29, ,833 29,808 2,530,66 8,97 395,632 4,62 29, ,833 29,808 2,530,66 8,97 395,632 4,62 4,082 8,093 38,95 9,835 6,48 2 4,082 8,093 38,95 9,835 6, ,766 42,740 9,63 2,520,33 2, ,620 4,62 29,03 552,409 5,493 99,996 7, ,55 38,858 Life Insurance Takaful: Individual family Group family Group health 92, ,747 92, , , ,747 3,734,075 3,734,075 77,97 77,97 3,656,878,94,824 Grand total 5,399, ,483,56,899 4,988,572 89, , ,24 67,742 4,36,830 2,50,502 The annexed notes to 7 form an integral part of this condensed interim consolidated financial information. Principal Officer and Chief Executive 32 HALF YEARLY REPORT JUNE206 IGI INSURANCE

34 Consolidated Condensed Interim Statement of Claims for the quarter and half year ended June 30, 206 (Unaudited) Business underwritten inside Pakistan NonLife Insurance: Direct and facultative Fire and property damage Marine, aviation and transport Motor Health Miscellaneous Claims paid 52,765 32,0 7,47 25,427 25, ,768 Outstanding claims Opening Closing 220,849 42,49 8,826 3,443 87,858 70,25 489,509 34,592 38,326 33,70 353,926,50,063 For the quarter ended June 30, 206 Claims expense 32,425 24,454 90,97 27,694 9,62 655,706 38,649 8, ,45 75,722 Reinsurance and other recoveries in respect of outstanding claims Reinsurance and other recoveries received Opening Closing 89,704 74,680 4,728 6,20 440, ,828 66,757 4,687 32, ,574 Reinsurance and other recoveries revenue 269,773 0, , ,064 Net claims expense Quarter ended June 30, 206 June 30, 205 5,652 3,777 90,954 27,694 2,565 96,642 52,242 25,09 83,477 9,844 9,0 89,683 Life Insurance Conventional: Life participating Life nonparticipating (individual) Life nonparticipating (group) Investment linked business Accident and health (individual) Accident and health (group) Pension business fund 22,444 67,288 28, ,08 2,593 38,502 66,96 22,444 67,288 28, ,08 2,593 38,502 66,96 2,348 2,075 2,348 2,075 22,444 64,940 26,28 497,08 2,593 38,502 66,96 6,495 04,236 33,79 357,820 (,83) 05,2 847 Life Insurance Takaful: Individual family Group family Group health 3,48 3 3,48 3 3, ,97 925,97 4,423 4,423 92,548 66,605 Grand,32,739 70,25,50,063,58,677 80,45 440, , ,487,8,90 806,288 For the half year ended June 30, 206 NonLife Insurance: Direct and facultative Fire and property damage Marine, aviation and transport Motor Health Miscellaneous Claims paid 69,209 6,829 54,79 48,643 52, ,899 Outstanding claims Opening Closing 27,48 35,33 20,843 34,706 35, ,86 489,509 34,592 38,326 33,70 353,926,50,063 Claims expense 34,570 6,08 7,662 47, ,59 892,46 5,0 44, ,05 6,998 Reinsurance and other recoveries in respect of outstanding claims Reinsurance and other recoveries received Opening Closing 84,48 80,498 4,687 2,326 39, ,828 66,757 4,687 32, ,574 Reinsurance and other recoveries revenue 287,78 3, , ,93 Net claims expense Half year ended June 30, 206 June 30, ,789 30,06 7,604 47,647 40,32 343,233 55,46 42,08 55,065 4,84 26,936 32,294 Life Insurance Conventional: Life participating Life nonparticipating (individual) Life nonparticipating (group) Investment linked business Accident and health (individual) Accident and health (group) Pension business fund 38, ,025 56,2 940,55 4, ,760 66,96 38, ,025 56,2 940,55 4, ,760 66,96 2,468 2,052,442 2,468 2,052,442 38, ,557 54, ,073 4, ,760 66,96 36,343 82,782 56,422 98,400 (79) 98,276 5,073 Life Insurance Takaful: Individual family Group family Group health 4, , , ,636,620,636,620 5,962 5,962,630,658,407,27 Grand 2,022,59 643,86,50,063 2,528,766 22,960 39, , ,875,973,89,728,5 The annexed notes to 7 form an integral part of this condensed interim consolidated financial information. Principal Officer and Chief Executive IGI INSURANCE HALF YEARLY REPORT JUNE20633

35 Consolidated Condensed Interim Statement of Expenses for the quarter and half year ended June 30, 206 (Unaudited) Business underwritten inside Pakistan Commissions paid or payable Deferred commission Opening Closing For the quarter ended June 30, 206 Net commission expense Other management expenses Underwriting expense *Commissions from reinsurers Net underwriting expense Quarter ended June 30, 206 June 30, 205 NonLife Insurance: Direct and facultative Fire and property damage Marine, aviation and transport Motor Health Miscellaneous 30,388 0,607 7, ,45 30,388 0,607 7, ,45 32,45,562 27,87 6,884,92 62,803 22,69 44,278 7,560 25,066 39,05 22,462 8,35 23,698 (293) 44,278 7,560 6,75 2,790 2,93 5,379 (207) 5,202 7,907 7,907 89,969 6,876 69,882 9,994 7,357 Life Insurance Conventional: Life participating Life nonparticipating (individual) Life nonparticipating (group) Investment linked business Accident and health (individual) Accident and health (group) Pension business fund,363 38,434 3,776 03,489 4,094 2,7,363 38,434 3,776 03,489 4,094 2, ,244 0,334 28,982,477 23,0,799 52,678 4,0 32,47 5,57 35, ,563,089,799 52,524 9,547 3,382 5,57 35,82 9,89 73,643 8,483 06,83 4,890 27, Life Insurance Takaful: Individual family Group family Group health 56, , ,085 68, , , ,289 90,569 30,858 5,95 304,907 34,76 Grand total 292,96 292,96 80, ,734 75, ,90 43,073 Commissions paid or payable Deferred commission Opening Closing For the half year ended June 30, 206 Net commission expense Other management expenses Underwriting expense *Commissions from reinsurers Net underwriting expense Half year ended June 30, 206 June 30, 205 NonLife Insurance: Direct and facultative Fire and property damage Marine, aviation and transport Motor Health Miscellaneous 44,60 9,545 38,675 2,306 2,959 44,60 9,545 38,675 2,306 2,959 62,076 22,492 58,499 0,020 20,08 06,236 42,037 97,74 2,326 4,977 72,062 44, ,80 34,74 (2,539) 97,66 2,326 24,797 8,87 3,6 95,968 4,068 20,283 26,645 26,645 73,05 299,750 33,826 65,924 3,622 Life Insurance Conventional: Life participating Life nonparticipating (individual) Life nonparticipating (group) Investment linked business Accident and health (individual) Accident and health (group) Pension business fund,767 63,842 8,82 56,505 6,548 5,722,767 63,842 8,82 56,505 6,548 5,722,376 45,746 9,445 66,050 5,09 43,273 3,43 09,588 28, ,555,639 58, ,526, ,43 09,200 9,73 220,6,639 58,978 8, ,327 33,72 49,093 8,58 52,044 7 Life Insurance Takaful: Individual family Group family Group health 78, , ,433 0, , , , , ,44 535,942, , ,520 Grand total 459,73 459,73 376,59 835,692 44,92 690,77 672,42 * Commissions from reinsurers is arrived after taking impact of opening and closing unearned commission. The annexed notes to 7 form an integral part of this condensed interim consolidated financial information. Principal Officer and Chief Executive 34 HALF YEARLY REPORT JUNE206 IGI INSURANCE

36 Consolidated Condensed Interim Statement of Investment Income for the quarter and half year ended June 30, 206 (Unaudited) Nonlife Insurance: Income from nontrading investments Held to maturity Return on government securities Dividend income on available for sale investments Gain on sale of available for sale investments Provision for diminution in value of available for sale investmentsnet Less: Investment related expenses Life Insurance Conventional Shareholders' fund Return on government securities Gain on sale of investments held as 'available for sale' Dividend income Interest income on loans to employees / agents Statutory Funds Life participating Return on government securities Unrealised gain on revaluation of availableforsale investments Dividend income Gain / (loss) on sale of investments classified as availableforsale Unaudited Quarter Ended June 30, 206 June 30, 205 3, ,7 0,962 22,68 (3,746) 437,499 7,982 0,457 2, ,82 40,46 (993) 5, ,28 3, , ,76 36,998 (4,809) 84,443 7,740 6,066,743 25,549 36,945 4,934 3,354,669 56,902 Unaudited Half year ended June 30, 206 June 30, 205 7,906 42,369 0,962 7,099 (7,520) 440,86 34,905 0,457 2, ,05 78, ,24 (48) 85,022 7,902 42, ,76 (982) (6,439) 808,777 35,65 6,54, ,424 74,53 (2,42) 3,354 2,53 87,986 Life nonparticipating (individual) Return on government securities Unrealised gain on revaluation of availableforsale investments Dividend income Gain on sale of investments classified as availableforsale 24,627 (7,83) 4,245 7,542 38,583 5,087 3,864 9,4 3,76 69,78 24,4 2,277 4,245 (447) 257,89 27,944 (6,03) 9,4 34, ,04 Life nonparticipating (group) Return on government securities Unrealised gain on revaluation of availableforsale investments Dividend income Gain on sale of investments classified as availableforsale 5, ,233 8,9 5,45 553,925 7,893 0, ,233 3,426 0, ,067 3,42 Investment linked business Return on government securities Unrealised gain on availableforsale investment Gain / (loss) on sale of investment held as availableforsale 99,693 93,675 (9,224) 84,44 67,485 59,969 2,46 29,870 80,803 93,675 73, ,55 39,74 53,626 7, ,445 Accident and health (individual) Return on government securities Dividend income Gain on sale of investments classified as availableforsale , ,22, ,296, ,36 Accident and health (group) Return on government securities Unrealised gain on revaluation of availableforsale investments Dividend income Gain on sale of investments classified as availableforsale 5, ,690 9,393 5, ,427 0, ,690 4,66 8, ,338 Pension business fund Return on government securities 2,630 2,342 5,67 4,253 Life Insurance Takaful Individual family Gain on sale of investments classified as availableforsale 2,470 2,99 Net investment income Net investment incomestatutory funds Net investment incomeother 860, ,09 468,68 860,772,24,49 374, ,992,24,49,27, ,42 488,92,27,333,524, , ,20,524,974 The annexed notes to 7 form an integral part of this condensed interim consolidated financial information. Principal Officer and Chief Executive IGI INSURANCE HALF YEARLY REPORT JUNE20635

37 Notes to and forming part of the Condensed Interim Financial Information.. STATUS AND NATURE OF BUSINESS The "Group" consist of: (i) IGI Insurance Limited Holding Company (ii) IGI Life Insurance Limited Subsidiary Company In accordance with share purchase agreement the Holding Company acquired 34,838,687 shares of IGI Life Insurance Limited [formerly American Life Insurance Company (Pakistan) Limited], the Subsidiary Company on April 0, 204 resulting in the controlling interest of % of the paid up capital of the Subsidiary. During the previous year, the Holding Company acquired remaining 6,48,003 shares (representing 2.293% of the issued and paid up capital) of the Subsidiary Company..2 Holding Company IGI Insurance Limited ("the Holding Company"), a Packages Group Company, was incorporated as a public limited company in 953 under Companies Ordinance, 984 and is quoted on the Pakistan Stock Exchange Limited (formerly Karachi Stock Exchange Limited) and is engaged in providing general insurance services in spheres of Fire, Marine, Motor, Health and Miscellaneous. The registered office of the Holding Company is situated at 7th floor, The Forum, Suite No. 7073, G20, Block 9, KhayabaneJami, Clifton, Karachi. During the preceding year, the Board of s of the Holding Company passed a resolution to commence Window Takaful Operations under the provisions of Takaful Rules, 202. In this regard, during the quarter, the Holding Company held an Extra Ordinary General Meeting (EOGM) in which the shareholders have approved amendment in Memorandum of Association of the Holding Company and the same amendment has been approved by Securities and Exchange Commission of Pakistan. The Holding Company intends to complete other legal formalities in this respect in the first half of year ending December 3, Subsidiary Company IGI Life Insurance Limited ("Subsidiary Company") was incorporated in Pakistan on October 9, 994 as a public limited company under the Companies Ordinance, 984. Its shares are quoted on the Pakistan Stock Exchange Limited. The Company commenced its operations on May 25, 995 after registration with the Controller of Insurance on April 30, 995. The registered office of the Company is situated at 7th floor, The Forum, Suite No. 7073, G20, Block 9, KhayabaneJami, Clifton, Karachi. The Subsidiary Company is engaged in life insurance, carrying on both participating and nonparticipating business. In accordance with the requirements of the Insurance Ordinance, 2000, the Subsidiary Company established a Shareholders Fund and Separate Statutory Funds, in respect of each class of life insurance business and family takafaul business. The Statutory Funds established by the Subsidiary Company, in accordance with the advice of the Appointed Actuary are as follows: Life (participating) Life (nonparticipating) Individual Life (nonparticipating) Group Investment Linked Accident & Health Individual Accident & Health Group Pension Business Fund Individual Family Takaful Group Family Takaful Group Health Takaful 36 HALF YEARLY REPORT JUNE206 IGI INSURANCE

38 for the quarter and half year ended June 30, 206 (Unaudited) 2. STATEMENT OF COMPLIANCE This condensed interim consolidated financial information has been prepared in accordance with the requirements of International Accounting Standard 34 (IAS 34) 'Interim Financial Reporting' and provisions of and directives issued under the Companies Ordinance, 984, the Insurance Ordinance, 2000, the SEC (Insurance) Rules, 2002 and directives issued by the SECP. In case where the requirements differ, the provisions of the Companies Ordinance, 984, the Insurance Ordinance, 2000, the SEC (Insurance) Rules, 2002 and the said directives prevail. 3. BASIS OF PRESENTATION This condensed interim consolidated financial information is unaudited and is being submitted to the shareholders in accordance with the listing regulations of Pakistan Stock Exchange and section 245 of the Companies Ordinance, 984. This condensed interim consolidated financial information of the Group has been prepared in accordance with the approved accounting standards as applicable in Pakistan for interim financial reporting and in the format prescribed by the Securities and Exchange Commission of Pakistan in its circular No. 7 of This condensed interim consolidated financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements for the year ended December 3, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies and methods of computation adopted in the preparation of this condensed interim consolidated interim financials information are the same as those applied in the preparation of the annual financial statements for the year ended December 3, SIGNIFICANT ESTIMATES AND JUDGEMENT The preparation of the condensed interim consolidated financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. In preparing this condensed interim consolidated financial information, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimating uncertainty were the same as those applied to the annual financial statements for the year ended December 3, FINANCIAL AND INSURANCE RISK MANAGEMENT The financial and insurance risk management objectives and policies are consistent with those disclosed in the annual financial statements of the Group for the year ended December 3, PREMIUM DEFICIENCY RESERVE No provision has been made in respect of premium deficiency reserve as the unearned premium reserve for each class of business as at period end is adequate to meet the expected future liability, after reinsurance, from claims and other expenses, expected to be incurred after the balance sheet date in respect of policies in force at the balance sheet date BORROWINGS Short term credit facilities available from various commercial banks under markup arrangements amount to Rs. 3,550 million (205: Rs. 2,250 million). The rates of markup on these facilities range from 6.22% to 7.92% per annum (205: 6.70% to 7.85% per annum) and are payable latest by July 5, 206. These facilities are secured against pledge of shares held by the Holding Company. 8.2 The Holding Company obtained a long term finance facility amounting to Rs.,000 million during 205 for the purpose of equity investment in Packages Construction Limited, out of which Rs. 750 million was availed during the half year ended June 30, 206. The rate of markup on this facility is 6.72% per annum (205: Nil). Principal repayment is to be made in 6 equal semiannual installments and will be due after 30th month of the drawdown date. The first disbursement was on May 26, 206. This facility is secured against pledge of shares held by the Holding Company. IGI INSURANCE HALF YEARLY REPORT JUNE20637

39 Notes to and forming part of the Condensed Interim Financial Information 9. CONTINGENCIES AND COMMITEMENTS 9. Contingencies Taxation There is no change in the status of contingencies as disclosed in the annual financial statements of the Group for the year ended December 3, 205 except for following: Holding Company In case of tax year 200, the Additional Commissioner Inland Revenue (ACIR) passed an amended assessment order under section 22(5A) of the Income Tax Ordinance, 200 (the Ordinance) wherein tax on dividend and property income was charged at corporate tax rate by treating such income as business income of the Holding Company under Fourth Schedule to the Ordinance. Further, the ACIR had disallowed provision of IBNR under section 34(3) of the Ordinance. As a result of the amended assessment demand of Rs million was created. The Holding Company filed appeal and application for stay of tax demand before the CIR(A) against the above assessment order. The Holding Company also filed a petition against the said order before the Honorable Sindh High Court which was referred back by the Honorable Sindh High Court to the CIR(A). Pursuant to appeal, the learned CIR(A) vide combined appellate dated March 0, 206 decided all issues in favor of the Holding Company. The tax department has filed further appeal before the Appellate Tribunal Inland Revenue (ATIR) in respect of the issues on which relief was allowed by the CIR(A). In case of tax year 20, the Additional Commissioner Inland Revenue (ACIR) passed an amended assessment order under section 22(5A) of the Ordinance wherein tax on dividend and property income was charged at corporate tax rate by treating such income as business income of the Holding Company under Fourth Schedule to the Ordinance. Further, the ACIR had also disallowed provision of IBNR, claim of brought forward loss for the tax year 2008 and Workers Welfare 2% of the accounting profit for the year had also been levied. Moreover, the ACIR had also disallowed refund adjustments for tax years 2004 and 2009 in the amended assessment order. As a result of the amended assessment demand of Rs million was created. The Holding Company filed appeal and application for stay of tax demand before the CIR(A) against the above assessment order. The Holding Company also filed a petition against the said order before the Honorable Sindh High Court which was referred back by the Honorable Sindh High Court to the CIR(A). Pursuant to appeal, the learned CIR(A) vide combined appellate dated March 0, 206 decided issues pertaining to chargeability of tax on dividend and property income, provision of IBNR and levy of Workers' Welfare Fund in favor of the Holding Company. As regards, credit / adjustment of refunds available to the Holding Company, the CIR(A) has remanded back the issue with the directions to verify the claim of refunds and allow the adjustment as per law. The tax department has filed further appeal before the Appellate Tribunal Inland Revenue (ATIR) in respect of the issues on which relief was allowed by the CIR(A). In case of tax year 202, subsequent to period end, the Additional Commissioner Inland Revenue (ACIR) has passed an amended assessment order under section 22(5A) of the Income Tax Ordinance, 200 (the Ordinance) wherein tax on dividend and property income was charged at corporate tax rate (i.e. 35% for the year) by treating such income as business income of the Holding Company under Fourth Schedule to the Ordinance. Further, the ACIR had disallowed provision of IBNR under section 34(3) of the Ordinance. As a result of the amended assessment demand of Rs million has been created. The Holding Company is in process of filing an appeal and application for stay of tax demand before the CIR(A) against the above assessment order. In case of tax year 203, the Additional Commissioner Inland Revenue (ACIR) has passed an amended assessment order under section 22(5A) of the Income Tax Ordinance, 200 (the Ordinance) wherein tax on dividend and property income was charged at corporate tax rate (i.e. 35% for the year) by treating such income as business income of the Holding Company under Fourth Schedule to the Ordinance. Further, the ACIR has also disallowed provision of IBNR, claim of brought forward loss for the tax year 202 and has also made an addition on account of disposal of fixed assets at less than Fair Market Value (FMV) in the amended assessment order. As a result of the amended assessment, demand of Rs million was created. The Holding Company has obtained stay order from the Honorable Sindh High Court in respect of the above tax demand. Further, against the aforesaid order, the Holding Company has filed an appeal before CIR(A) which is pending adjudication. In case of tax year 205, the Assistant Commissioner Inland Revenue (ACIR) has passed an order under section 22 of the Ordinance charging Super tax under section 4B amounting to Rs million. The Holding Company has written a letter to ACIR to adjust the aforesaid demand against the refunds for the tax years 2008 and 202 amounting to Rs million and Rs million respectively, however no adjustment has been made todate. Further, the Holding Company filed an application with the ACIR requesting to annul the order based on various legal grounds, however, no order has yet been passed in this regard. Moreover, the Holding Company has also filed an appeal before the CIR(A) in respect of the order passed under section 22 of the Ordinance, which is pending adjudication. 38 HALF YEARLY REPORT JUNE206 IGI INSURANCE

40 for the quarter and half year ended June 30, 206 (Unaudited) Subsidiary Company While finalising the tax assessment for the accounting years ended December 3, 202 (Tax Year 203) and December 3, 20 (Tax Year 202) the taxation officer raised additional tax demand of Rs..029 million and Rs million respectively on the Subsidiary Company on nondeduction of withholding tax under section 5(d) of the Income Tax Ordinance, 200 on the amount of surrenders paid during the respective years. The Subsidiary Company filed appeal before Commissioner Inland Revenue Appeals (CIRA) in respect of said tax years which were decided in favour of the Subsidiary Company. The Commissioner Inland Revenue has now filed before Appellate Tribunal (ATIR) challenging the order passed by CIRA. The management and tax advisor of the Group are confident that the above matters will be decided in the Group's favor. Accordingly, no provision has been recognised in this condensed interim consolidated financial information. 9.2 Commitments Subsidiary Company Unaudited Audited June 30, 206 Dec. 3, 205 In respect of capital expenditure Not later than one year 857 7,68 Note 0. INVESTMENTS The investments comprise of the following: Investment in associates 0. 7,699,20 4,640,899 Held to maturity Government securities 0. 24,806 24,558 Available for sale Quoted Government securities Listed mutual funds Unquoted ,69,69,806,045,835,076 5,762 2,376,502 7,586,648 3,078,527,569,09 6,609,30 8,843,44 At fair value through profit or loss 378,375 79,254 29,578,803 24,328,25 0. Market value of investments as at June 30, 206 is Rs. 65,226 million (December 3, 205: Rs. 6,503 million).. FIXED ASSETS Tangible Unaudited Audited June 30, 206 Dec. 3, 205 Opening book value Add: Additions during the period / year Less : Net book value of assets disposed during the period / year Depreciation for the period / year Add: Capital work in progress Closing book value 29,384 57,39 7,945 33,887 4, ,69 3,069 39, ,664 7,76 50,667 58,727 09, ,446 7,938 29,384 IGI INSURANCE HALF YEARLY REPORT JUNE20639

41 Notes to and forming part of the Condensed Interim Financial Information 2. TRANSACTIONS WITH RELATED PARTIES Related parties comprise associated undertakings, other related companies, directors of the Group, key management personnel and post employment benefit plans. The Group in the normal course of business carry out transactions with various related parties. All transactions with related parties have been carried out on commercial terms and conditions. Associates Post employment benefit plans for the half year ended Key Management personnel (including directors) Other related parties Transactions June 30, 206 June 30, 205 June 30, 206 June 30, 205 June 30, 206 June 30, 205 June 30, 206 June 30, 205 Premium underwritten Premium collected Claims expense Commission expense Commission paid Rental income Fixed assets disposed Dividend received Dividend paid Key management personnel compensation Investment / (divestment) in shares net of provision for impairment Brokerage commission Markup on loan Charge in respect of gratuity fund Charge in respect of provident fund Contribution to gratuity fund Contribution to provident fund 62,855 76,654 28,825 3,907 2, ,572 52,088 2,48,674 63,728 86,4,825 4,07 3, ,98 39,066 (60,53) 4,756 0,68 3,957 4,473 8,925 0,344 3,595,76 523, ,54 87, ,960 07,282 72, , ,232 59,378 5,897 9,740,76 6, ,625 8,443 55,58 252,288 7,223 0,489 6,428, ,927 Associates June 30, 206 June 30, 205 Post employment benefit plans June 30, 206 June 30, 205 as at Key management personnel (including directors) June 30, 206 June 30, 205 Other related parties June 30, 206 June 30, 205 Periodend balances Premium receivable Commission payable Claim payable Investment in shares Other receivable Payable in respect of Administrative Services received Receivable in respect of Administrative Services provided (Payable to) / Receivable from gratuity fund (Payable to) / Receivable from provident fund 28,945 2,779 6,29,706 24,55 4,44,07 3,873,03 23,296 (5,907) (,939) 378 (,67) ,024 8, ,60 9,355,262 6,38 25,826 4,06,00 264,985 6,045 4, HALF YEARLY REPORT JUNE206 IGI INSURANCE

42 for the quarter and half year ended June 30, 206 (Unaudited) 3. SEGMENT REPORTING Class of business wise revenue and results have been disclosed in the condensed interim statement of premiums and profit and loss account, respectively, prepared in accordance with the requirement of Insurance Ordinance, 2000 and the SEC (Insurance) Rules, Fire and property damage Nonlife Insurance Marine, aviation and transport Motor Health Miscellaneous June 30, 206 (Unaudited) Life Insurance Life Accident and nonparticipating Investment Life health business participating linked Individual Group business Individual Group Pension business fund Individual family Takaful window Group family Group health Aggregate total Segment assets Unallocated assets Consolidated total assets Segment liabilities Unallocated liabilities Consolidated total liabilities,282,020,386,732 23, ,786 38,93 746,438 66,437 69, , ,667,720,206,99,957 5,39,398 5,044, ,99 264,644 7,073,572 6,936,324 33,520 30, , ,09 47,327 43,480 44,973 57, ,99 4,829 7,620,604 6,965,520 34,586,24 7,270,92 3,449,386 20,720,307 Fire and property damage Nonlife Insurance Marine, aviation and transport Motor Health Miscellaneous December 3, 205 (Audited) Life Insurance Life Accident and nonparticipating Investment Life health business participating linked Individual Group business Individual Group Pension business fund Individual family Takaful window Group family Group health Aggregate total Segment assets Unallocated assets Consolidated total assets Segment liabilities Unallocated liabilities Consolidated total liabilities 702, ,04 29,7 245, ,840 45,642 37,983 97,90 286, ,325,656,580,82,293 5,009,524 4,83, , ,386 5,292,284 5,063,62 34,224 23, , ,393 03,433 99,938 42,943 4, ,7 3,36 4,283,25 4,03,25 28,34,502 3,423,048,46,096 4,839,44 4. EARNINGS PER SHARE Basic / diluted earnings per share Profit for the period Unaudited Unaudited Quarter Ended Half Year ended June 30, 206 June 30, 205 June 30, 206 June 30, 205 Restated Restated 46,568,040,39 866,6,52,67 (Number of shares) Weighted average number of ordinary shares Earnings per share 22,689,532 22,689,532 (Rupees) ,689,532 22,689,532 (Rupees) CORRESPONDING FIGURES Corresponding figures have been restated / rearranged and reclassified, wherever necessary, for the purpose of comparison. There have been no significant reclassifications / restatements in the consolidated condensed interim financial information. 6. DATE OF AUTHORIZATION FOR ISSUE This consolidated condensed interim financial information has been authorized for issue on August 25, 206 by the Board of s of the Group. 7. DATE OF AUTHORIZATION FOR ISSUE Figures in these consolidated condensed interim financial information have been rounded off to the nearest thousand of rupees. Principal Officer and Chief Executive IGI INSURANCE HALF YEARLY REPORT JUNE2064

43 Shareholder s Information for the Half Year Ended June 30, 206 (Unaudited) Shareholders Category No. of Shareholder No. of Shares Held Percentage s, Chief Executive Officer, and their spouse and minor children. 9 38,259, Associated Companies, undertakings and related parties. 4 38,506, Banks Development Financial Institutions, Non Banking Financial Institutions. 7 7,657, Insurance Companies 9 2,048,26.67 Modarabas and Mutual Funds 0,672,44.36 Share holders holding 0% 3 60,755, General Public : a. Local,662 7,57, b. Foreign Others 80 7,028, (excluding : share holders holding 0%),79 22,689, HALF YEARLY REPORT JUNE206 IGI INSURANCE

44 ,79 Number of Shareholders Number of Shares Held 3,967 0,939 59, ,894,303,989 63, , , , ,86 30,868 75,53 287, , , , ,60 246,42 88,600 90, , , ,074 8,468 23,022 27,00 274,466 48,45 458,00 38,430 64,852 55,222 77,00 205, , ,67 226, , ,00 507, , ,79 907, , , , , , , , , , ,678,0, ,76 585, , ,00 667,42 759, ,300 84, , , ,720,063,207,67,96,24,475,226,80,676,677,686,000,9,740,946,364 2,407,00 4,039,028 4,086,385 4,58,465 6,230,9 3,022,093 20,853,966 26,879,460 22,689,532 To ,000 5,000 0,000 5,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 70,000 75,000 85,000 90,000 95,000 05,000 0,000 5,000 20,000 25,000 30,000 40,000 50,000 55,000 60,000 65,000 75,000 80,000 20, , , , , , , , , ,000 30, , , , , , , , , , , , , , , , , ,000 85, , ,000,000,000,065,000,70,000,25,000,230,000,680,000,690,000,95,000,950,000 2,40,000 4,040,000 4,090,000 4,520,000 6,235,000 3,025,000 20,855,000 26,880,000 From 0 50,00 5,00 0,00 5,00 20,00 25,00 30,00 35,00 40,00 45,00 50,00 55,00 65,00 70,00 80,00 85,00 90,00 00,00 05,00 0,00 5,00 20,00 25,00 35,00 45,00 50,00 55,00 60,00 70,00 75,00 205,00 25,00 220,00 225,00 235,00 240,00 250,00 285,00 295,00 300,00 305,00 320,00 325,00 330,00 340,00 360,00 365,00 375,00 440,00 485,00 550,00 580,00 585,00 620,00 625,00 665,00 755,00 790,00 80,00 860,00 920,00 995,00,060,00,65,00,20,00,225,00,675,00,685,00,90,00,945,00 2,405,00 4,035,00 4,085,00 4,55,00 6,230,00 3,020,00 20,850,00 26,875,00 Pattern of Shareholding for the Half Year Ended June 30, 206 (Unaudited) IGI INSURANCE HALF YEARLY REPORT JUNE20643

45 44 HALF YEAR REPORT JUNE206IGI INSURANCE

46 IGI INSURANCE HALF YEARLY REPORT JUNE20645

47