Atlas Insurance : Transmission of Quarterly Report for the Period Ended 30-9-2022

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2022Quarterly Report September 30,2

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Contents

Company Overview

02 Company Information

Corporate Governance

1. Chairman's Review (English)

1. Chairman's Review (Urdu)
2. Directors' Review (English)
3. Directors' Review (Urdu)

Condensed Interim Financial Statements

1. Condensed Interim Statement of Financial Position
2. Condensed Interim Profit and Loss Account
3. Condensed Interim Statement of Comprehensive Income
4. Condensed Interim Statement of Changes in Equity
5. Condensed Interim Cash Flow Statement

16 Notes to and Forming Part of the Condensed Interim Financial Statements

Condensed Interim Financial Statements - Window Takaful Operations

1. Condensed Interim Statement of Financial Position
2. Condensed Interim Profit and Loss Account
3. Condensed Interim Statement of Comprehensive Income
4. Condensed Interim Statement of Changes in Funds
5. Condensed Interim Cash Flow Statement

38 Notes to and Forming Part of the Condensed Interim Financial Statements

Other Information

48 Company Offices

Company Information

Board of Directors

Iftikhar H. Shirazi

Chairman / Non-Executive Director

Ali H. Shirazi

Non-Executive Director

Frahim Ali Khan

Non-Executive Director

Hasan Reza ur Rahim

Independent Director

Muhammad Habib-ur-Rahman

Non-Executive Director

Roohi Raees Khan

Independent Director

Babar Mahmood Mirza

Chief Executive / Executive Director

Muhammad Afzal

Company Secretary

Audit Committee

Hasan Reza ur Rahim

Chairman

Ali H. Shirazi

Member

Frahim Ali Khan

Member

Muhammad Afzal

Secretary

Saleem Mahmood Akhtar

Chief Internal Auditor

Ethics, Human Resource & Remuneration Committee

Roohi Raees Khan

Chairperson

Ali H. Shirazi

Member

Frahim Ali Khan

Member

Babar Mahmood Mirza

Member

Qudsia Naheed

Secretary

Investment Committee

Ali H. Shirazi

Chairman

Frahim Ali Khan

Member

Muhammad Habib-ur-Rahman Member

Babar Mahmood Mirza

Member

Muhammad Aasim Gul

Member

Muhammad Afzal

Secretary

Underwriting, Reinsurance &

Co-Insurance Committee

Ali H. Shirazi

Chairman

Babar Mahmood Mirza

Member

Rashid Amin

Member

Syed Nasir Hussain

Member

Syed Irtiza Kazmi

Secretary

Claims Settlement Committee

Frahim Ali Khan

Chairman

Babar Mahmood Mirza

Member

Muhammad Aasim Gul

Member

Muhammad Saeed

Member

Athar Maqsood Paracha

Secretary

02 Quarterly Report September 2022

Company Information

Risk Management & Compliance Committee

Babar Mahmood Mirza

Chairman

Muhammad Aasim Gul

Member

Rashid Amin

Member

Muhammad Saeed

Member

Athar Maqsood Paracha

Secretary

Information Technology (IT) Committee

Babar Mahmood Mirza

Chairman

Rashid Amin

Member

Muhammad Aasim Gul

Member

Abdul Razzaq Ghauri

Member

Wasim Ahmed

Secretary

Management Committee

Babar Mahmood Mirza

Chief Executive Officer

Muhammad Aasim Gul

Chief Financial Officer

Rashid Amin

GM Underwriting & Compliance

Abbas Sajjad

General Manager Sales & Marketing

Muhammad Saeed

General Manager Claims

Qudsia Naheed

General Manager HR & Admin

Abdul Razzaq Ghauri

Head of IT

Syed Irtiza Kazmi

Head of Underwriting

Syed Nasir Hussain

Head of Reinsurance

Shariah Advisor

Mufti Zeeshan Abdul Aziz

GM Compliance

Rashid Amin

Auditors

EY Ford Rhodes

Chartered Accountants

Legal Advisors

Mohsin Tayebaly & Co.

Haroon Dughal Law Chambers

Tax Advisor

EY Ford Rhodes

Chartered Accountants

Share Registrar

Hameed Majeed Associates (Pvt) Limited

H. M. House, 7-Bank Square,

Shahrah-e-Quaid-e-Azam, Lahore

Tel: [phone]

Fax: [phone]

Bankers

Askari Bank Limited

Bank Alfalah Limited

Bank Al Habib Limited

Bank Islami Limited

Faysal Bank Limited

Habib Bank Limited

MCB Bank Limited

Meezan Bank Limited

National Bank of Pakistan

NRSP Microfinance Bank

Sindh Bank Limited

Soneri Bank Limited

Summit Bank Limited

FINCA Microfinance Bank Limited

Registered & Head Office

63/A, Block - XX, Phase III (Commercial), Khyaban-e-Iqbal, DHA, Lahore.

Tel: [phone]

Fax: [phone]

E mail: [e-mail]

Website: www.ail.atlas.pk

Atlas Insurance Limited

03

Chairman's Review

It gives me great pleasure to present the un-audited accounts of your Company for the nine months period ended September 30, 2022.

The Economy

The economy has slowed down considerably signaling that the tightening measures implemented over the last fiscal year are gaining traction. The recent floods have altered the macroeconomic outlook and a fuller assessment of their impact would become firmer after the flood damage assessment is finalized by the government. During the first quarter of FY23, most of the demand indicators were lower compared to the same period last year - including sales of cement, POL, and automobiles. On the supply side, electricity generation declined for the third consecutive month in August, falling by 12.6% compared to the same period last year. Similarly, the Large-Scale Manufacturing declined by 1.4% in July against 4.4% growth in the corresponding period last year, largely driven by broad-based deterioration in domestically oriented sectors. The agriculture has also suffered significantly due to recent floods and heavy monsoon rains.

After peaking in August, the headline inflation fell by more than 4 percentage points in September to 23.2%, driven by reduction in electricity prices due to an administrative intervention. Considering continued deceleration in economic activity as well as the decline in headline inflation and the current account deficit, the SBP decided to maintain the policy rate at 15% on October 10, 2022.

The current account and trade deficits narrowed significantly in August and September, respectively, and the Rupee has recouped some of its losses following the recent depreciation. The current account deficit shrank for the second consecutive month in August to USD 0.7 billion. In September, the trade deficit contracted sharply by 30.6% year on year to reach USD 2.9 billion, reflecting a decline in both energy and non-energy imports amid stable exports. During the first quarter of FY23, imports have declined by 12.7% to USD 16.3 billion while exports have grown by 1.8% to USD 7 billion. In Jul-Aug FY23, the workers' remittances were recorded at USD 5.2 billion against USD 5.4 billion of last year, down 3.2%.

During the first quarter FY23, the FBR tax collection rose to Rs. 1.635 trillion, surpassing the target by Rs. 27 billion. While the floods could make it challenging to achieve the planned fiscal consolidation this year, the government has so far been able to meet urgent spending needs through re-allocation and re-appropriations of budgeted funds. The pressure on economy did impact the country's capital markets as well. The benchmark KSE-100 Index delivered negative return of 8% in CY22, up to September 30, as investors were unnerved owing to rise in interest rates and devaluation of Pak Rupee.

The Company

Your Company performed well in the core business operations during the period under review. Gross premium and Takaful contribution for the nine months period ended September 30, 2022 stood at Rs. 4.296 billion against Rs. 3.404 billion of the same period last year, up 26%. Net premium increased to Rs. 1.533 billion against Rs. 1.309 billion of the same period last year, up 17%. Underwriting profit registered 20% growth and increased to Rs. 660 million against Rs. 549 million of the same period last year. Due to impairment of Rs. 284 million provided in value of available for sale investments, the Company posted loss of Rs. 73 million from investments against

04 Quarterly Report September 2022