INTERIM FINANCIAL STATEMENTS - FOR THE YEAR ENDED 31ST MARCH 2024
SOFTLOGIC LIFE INSURANCE PLC
INCOME STATEMENT
For the Period ended 31 March | Note | 2024 | 2023 | Change | ||
Rs. ' 000 | Rs. ' 000 | % | ||||
Audited | Audited | |||||
Gross written premiums | 5 | 7,162,827 | 5,984,618 | 20 | ||
Premiums ceded to reinsurers | (635,640) | (639,612) | (1) | |||
Net written premiums | 6,527,187 | 5,345,006 | 22 | |||
Other revenue | ||||||
Net finance income | 1,764,710 | 1,732,591 | 2 | |||
Net realised gains | 581,700 | 39 | 1491438 | |||
Net fair value (losses)/ gains | (427,083) | 207,236 | 306 | |||
Other operating income | 1,945 | 2,562 | (24) | |||
Total other revenue | 1,921,272 | 1,942,428 | (1) | |||
Total net revenue | 6 | 8,448,459 | 7,287,434 | 16 | ||
Net benefits, claims and expenses | ||||||
Net insurance benefits and claims paid | (3,367,726) | (3,188,942) | 6 | |||
Net change in insurance claims outstanding | (57,416) | 47,830 | (220) | |||
Change in insurance contracts liabilities | (557,262) | 65,026 | (957) | |||
Underwriting and net acquisition cost (Net of reinsurance) | (1,490,712) | (1,371,103) | 9 | |||
Other operating and administration expenses | (1,495,699) | (1,261,235) | 19 | |||
Impairment reversal / (provision) on financial investments | 117,878 | (156,114) | (176) | |||
Finance cost | 7 | (401,350) | (602,136) | (33) | ||
Total benefits, claims and expenses | (7,252,287) | (6,466,674) | 12 | |||
Profit before tax | 8 | 1,196,172 | 820,760 | 46 | ||
Income tax expenses | (342,559) | (319,124) | 7 | |||
Profit for the period | 853,613 | 501,636 | 70 | |||
Profit attributable to; | ||||||
Owners of the Company | 853,613 | 501,636 | 70 | |||
Non controlling interest | - | - | ||||
853,613 | 501,636 | 70 | ||||
Earnings per share | ||||||
Basic earnings per share (Rs.) | 17 | 2.28 | 1.34 | 70 | ||
Diluted earnings per share (Rs.) | 17 | 2.28 | 1.34 | 70 |
The Notes form an integral part of these Interim Financial Statements.
Page 2 of 17
SOFTLOGIC LIFE INSURANCE PLC
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the Period ended 31 March | 2024 | 2023 | Change | |
Rs. ' 000 | Rs. ' 000 | % | ||
Audited | Audited | |||
Profit for the period | 853,613 | 501,636 | 70 | |
Other comprehensive income | ||||
Items that will not be reclassified to income statement | ||||
Equity investments at FVOCI - net change in fair value | (55,427) | 206,864 | ||
Equity investments at FVOCI - net change in fair value - Life fund | 37,873 | (15,462) | ||
Related tax / deferred tax | - | - | ||
(17,554) | 191,402 | (109) | ||
Items that are or may be reclassified subsequently to income statement | ||||
Debt investments at FVOCI - net change in fair value | (1,186) | 64 | ||
Debt investments at FVOCI - net change in fair value - Life fund | 4,711 | 17,495 | ||
Debt investments at FVOCI - reclassified to income statement | - | 221 | ||
Related tax / deferred tax | - | - | ||
3,525 | 17,780 | (80) | ||
Total other comprehensive income for the period, net of tax | (14,029) | 209,182 | (107) | |
Total comprehensive income for the period, net of tax | 839,584 | 710,818 | 18 | |
Total comprehensive income attributable to: | ||||
Owners of the Company | 839,584 | 710,818 | ||
Non - controlling interests | - | - | ||
839,584 | 710,818 | 18 | ||
The Notes form an integral part of these Financial Statements.
Page 3 of 17
SOFTLOGIC LIFE INSURANCE PLC
STATEMENT OF FINANCIAL POSITION
As at | Note | 31.03.2024 | 31.12.2023 | |||
Rs. ' 000 | Rs. ' 000 | |||||
Audited | Audited | |||||
Assets | ||||||
Intangible assets | 2,167 | 2,364 | ||||
Property, plant and equipment | 717,231 | 707,427 | ||||
Right of use assets | 673,822 | 611,661 | ||||
Deferred Tax Assets | 838,938 | 838,938 | ||||
Financial investments | 10 | 43,457,777 | 43,500,215 | |||
Loans to life policyholders | 328,870 | 331,301 | ||||
Reinsurance receivables | 590,744 | 465,211 | ||||
Premium receivables | 2,190,171 | 2,449,089 | ||||
Receivables and other assets | 1,620,368 | 1,333,537 | ||||
Cash and cash equivalents | 1,353,313 | 1,099,679 | ||||
Total assets | 51,773,401 | 51,339,422 | ||||
Equity and liabilities | ||||||
Equity | ||||||
Stated capital | 16 | 1,062,500 | 1,062,500 | |||
Restricted regulatory reserve | 798,004 | 798,004 | ||||
Other reserves | (2,158,921) | (2,144,892) | ||||
Retained earnings | 13,065,097 | 13,617,734 | ||||
Total equity | 12,766,680 | 13,333,346 | ||||
Liabilities | ||||||
Insurance contract liabilities | 11 | 28,549,811 | 27,925,474 | |||
Employee benefit liabilities | 282,317 | 276,302 | ||||
Loans and borrowings | 4,802,677 | 5,014,997 | ||||
Reinsurance payables | 909,082 | 718,855 | ||||
Other liabilities | 4,093,218 | 3,693,758 | ||||
Bank overdraft | 369,616 | 376,690 | ||||
Total liabilities | 39,006,721 | 38,006,076 | ||||
Total equity and liabilities | 51,773,401 | 51,339,422 | ||||
Net asset per share (Rs.) | 15 | 34.04 | 35.56 | |||
The Notes form an integral part of these Interim Financial Statements. | ||||||
These Financial Statements are in compliance with the requirements of the Companies Act No 07 of 2007. | ||||||
Sgd. | ||||||
Nuwan Withanage | ||||||
Chief Financial Officer | ||||||
The Board of Directors is responsible for the preparation and presentation of these Financial Statements. | ||||||
Approved and signed for and on behalf of the Board. | ||||||
Sgd. | Sgd. | |||||
Ashok Pathirage | Iftikar Ahamed | |||||
Chairman | Managing Director |
Colombo
07 May 2024
Page 4 of 17
SOFTLOGIC LIFE INSURANCE PLC
STATEMENT OF CHANGES IN EQUITY
Stated capital | Restricted | Other | Retained | Total | ||||
For the Period ended 31 March | regulatory | reserve | earnings | |||||
reserve | Fair value Revaluation | |||||||
reserve | reserves | |||||||
Rs. ' 000 | Rs. ' 000 | Rs. ' 000 | Rs. ' 000 | Rs. ' 000 | Rs. ' 000 | |||
Balance as at 01 January 2023 | 1,062,500 | 798,004 | (3,229,988) | 129,733 | 12,112,675 | 10,872,924 | ||
Profit for the period | - | - | - | - | 501,636 | 501,636 | ||
Other comprehensive income for the period | ||||||||
Equity investments at FVOCI - net change in fair value | - | - | 206,864 | - | - | 206,864 | ||
Equity investments at FVOCI - net change in fair value - Life fund | - | - | (15,462) | - | - | (15,462) | ||
Debt investments at FVOCI - net change in fair value | - | - | 64 | - | - | 64 | ||
Re-measurement Gain on defined benefit liabilities | - | - | - | - | - | - | ||
Gain on revaluation of land and building | - | - | - | - | - | - | ||
Debt investments at FVOCI - net change in fair value - Life fund | - | - | 17,495 | - | - | 17,495 | ||
Debt investments at FVOCI - reclassified to income statement | - | - | 221 | - | - | 221 | ||
Total other comprehensive income, net of tax | - | - | 209,182 | - | - | 209,182 | ||
Total comprehensive income for the period | - | - | 209,182 | - | 501,636 | 710,818 | ||
Transaction with owners of the Company | ||||||||
Contribution and distribution | ||||||||
Interim dividend - 2022 | - | - | - | - | (1,312,500) | (1,312,500) | ||
Total transactions with owners of the Company | - | - | - | - | (1,312,500) | (1,312,500) | ||
Balance as at 31 March 2023 | 1,062,500 | 798,004 | (3,020,806) | 129,733 | 11,301,811 | 10,271,242 | ||
Profit for the period | - | - | - | - | 2,336,768 | 2,336,768 | ||
Other comprehensive income for the period | ||||||||
Equity investments at FVOCI - net change in fair value | - | - | 399,844 | - | - | 399,844 | ||
Equity investments at FVOCI - net change in fair value - Life fund | - | - | 58,595 | - | - | 58,595 | ||
Debt investments at FVOCI - net change in fair value | - | - | 42,577 | - | - | 42,577 | ||
Re-measurement Gain on defined benefit liabilities | - | - | - | - | (20,845) | (20,845) | ||
Gain on revaluation of land and building | - | - | - | 43,783 | - | 43,783 | ||
Debt investments at FVOCI - net change in fair value - Life fund | - | - | 200,892 | - | - | 200,892 | ||
Debt investments at FVOCI - reclassified to income statement | - | - | 490 | - | - | 490 | ||
Total other comprehensive income, net of tax | - | - | 702,398 | 43,783 | (20,845) | 725,336 | ||
Total comprehensive income for the period | - | - | 702,398 | 43,783 | 2,315,923 | 3,062,104 | ||
Balance as at 31 December 2023 | 1,062,500 | 798,004 | (2,318,408) | 173,516 | 13,617,734 | 13,333,346 | ||
Profit for the period | - | - | - | - | 853,613 | 853,613 | ||
Other comprehensive income for the period | ||||||||
Equity investments at FVOCI - net change in fair value | - | - | (55,427) | - | - | (55,427) | ||
Equity investments at FVOCI - net change in fair value - Life fund | - | - | 37,873 | - | - | 37,873 | ||
Debt investments at FVOCI - net change in fair value | - | - | (1,186) | - | - | (1,186) | ||
Re-measurement losses on defined benefit liabilities | - | - | - | - | - | - | ||
Gain on revaluation of land and building | - | - | - | - | - | - | ||
Debt investments at FVOCI - net change in fair value - Life fund | - | - | 4,711 | - | - | 4,711 | ||
Debt investments at FVOCI - reclassified to income statement | - | - | - | - | - | - | ||
Total other comprehensive income, net of tax | - | - | (14,029) | - | - | (14,029) | ||
Total comprehensive income for the period | - | - | (14,029) | - | 853,613 | 839,584 | ||
Transaction with owners of the Company | ||||||||
Contribution and distribution | ||||||||
Interim Dividend - 2023 | - | - | - | - | (1,406,250) | (1,406,250) | ||
Total transaction with owners of the Company | - | - | - | - | (1,406,250) | (1,406,250) | ||
Balance as at 31 March 2024 | 1,062,500 | 798,004 | (2,332,437) | 173,516 | 13,065,097 | 12,766,680 |
Page 5 of 17
SOFTLOGIC LIFE INSURANCE PLC
STATEMENT OF CASH FLOWS
For the Period ended 31 March | 2024 | 2023 | ||
Rs. ' 000 | Rs. ' 000 | |||
Audited | Audited | |||
Cash flows from operating activities | ||||
Profit before taxation | 1,196,172 | 820,760 | ||
Adjustments for : | ||||
Depreciation of property, plant and equipment | 35,286 | 31,478 | ||
Amortisation of intangible assets | 197 | 170 | ||
Depreciation of right of use asset | 90,177 | 73,597 | ||
Interest expenses on lease liabilities and loans and borrowings | 185,924 | 185,530 | ||
Provision for employee benefit liabilities | 13,553 | 11,843 | ||
Net realised Gains | (581,700) | (39) | ||
Net fair value (Gains)/ losses | 427,083 | (207,236) | ||
Net unrealised losses on foreign currency transactions | 185,575 | 381,968 | ||
Net amortisation of financial investments | (262,364) | (338,567) | ||
Provision for impairment (Reversal) /losses on financial investments | (117,878) | 156,114 | ||
1,172,025 | 1,115,618 | |||
Change in operating assets | ||||
Decrease / (Increase) in loans to life policyholders | 2,431 | (9,454) | ||
Increase in reinsurance receivables | (125,533) | (144,311) | ||
Decrease in premium receivables | 258,918 | 203,075 | ||
Increase in receivables and other assets | (281,445) | (155,366) | ||
(145,629) | (106,056) | |||
Change in operating liabilities | ||||
Increase / (Decrease) in insurance contract liabilities | 624,337 | (43,938) | ||
Increase in reinsurance payables | 206,629 | 343,180 | ||
Increase / (Decrease) in other liabilities | 217,162 | (255,736) | ||
1,048,128 | 43,506 | |||
Net cash generated from operations | 2,074,524 | 1,053,068 | ||
Gratuity paid | (7,537) | (1,640) | ||
Tax Paid | (216,000) | (188,614) | ||
Net cash generated from operating activities | 1,850,987 | 862,814 | ||
Cash flows from investing activities | ||||
Acquisition of investment securities | (14,784,111) | (13,640,614) | ||
Proceeds from sale of investment securities | 14,769,330 | 14,336,698 | ||
Acquisition of property, plant and equipment | (45,090) | (60,533) | ||
Net Acquisition of ROU Asset | (26,386) | (36,951) | ||
Net cash flows used in investing activities | (86,257) | 598,600 | ||
Cash flows from financing activities | ||||
Dividend paid to equity holders | (1,406,250) | (1,312,500) | ||
Payment of lease liabilities | (97,772) | (107,632) | ||
Net cash used in financing activities | (1,504,022) | (1,420,132) | ||
Net increase / (Decrease) in cash and cash equivalents | 260,708 | 41,282 | ||
Net cash and cash equivalents as at 1 January | 722,989 | 431,626 | ||
Net cash and cash equivalents as at 31 March | 983,697 | 472,908 | ||
Analysis of cash and cash equivalents | ||||
Cash in hand and at bank | 1,353,313 | 909,436 | ||
Bank overdrafts | (369,616) | (436,528) | ||
Total cash and cash equivalents as at 31 March | 983,697 | 472,908 |
Page 6 of 17
SOFTLOGIC LIFE INSURANCE PLC
STATEMENT OF FINANCIAL POSITION-LIFE INSURANCE FUND
As at | Note | 31.03.2024 | 31.12.2023 | |
Rs. ' 000 | Rs. ' 000 | |||
Audited | Audited | |||
Assets | ||||
Property, plant and equipment | 307,814 | 311,000 | ||
Right of use assets | 664,822 | 600,973 | ||
Financial investments | 32,880,357 | 33,092,231 | ||
Loans to life policyholders | 328,870 | 331,301 | ||
Reinsurance receivables | 590,744 | 465,211 | ||
Premium receivables | 2,190,171 | 2,449,089 | ||
Receivables and other assets | 1,291,321 | 1,063,438 | ||
Cash and cash equivalents | 1,352,045 | 1,087,058 | ||
Total assets | 39,606,144 | 39,400,301 | ||
Equity and liabilities | ||||
Equity | ||||
Other reserves | (814,237) | (856,820) | ||
Total equity | (814,237) | (856,820) | ||
Liabilities | ||||
Insurance contract liabilities | 11 | 28,549,811 | 27,925,474 | |
Employee benefit liabilities | 282,317 | 276,302 | ||
Reinsurance payables | 909,082 | 718,855 | ||
Income tax liabilities | 774,128 | 927,170 | ||
Other liabilities | 9,535,427 | 10,032,630 | ||
Bank overdraft | 369,616 | 376,690 | ||
Total liabilities | 40,420,381 | 40,257,121 | ||
Total equity and liabilities | 39,606,144 | 39,400,301 |
Page 7 of 17
SOFTLOGIC LIFE INSURANCE PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1 REPORTING ENTITY
Softlogic Life Insurance PLC ("the Company") is a public limited liability company incorporated and domiciled in Sri Lanka. The Company is regulated under the Insurance Industry Act No. 43 of 2000 and amendments thereto. The Company was re - registered under the Companies Act No. 07 of 2007 and the registered office is situated at Level 16, One Galle Face Tower, Colombo - 02. The ordinary shares of the Company have a primary listing on the CSE.
2 APPROVAL OF FINANCIAL STATEMENTS BY THE BOARD OF DIRECTORS
The interim condensed Financial Statements for the quater ended 31 March 2024 were authorised for issue by the Board of Directors on 07 May 2024.
3 BASIS OF PREPARATION
The interim condensed Financial Statements for the quater ended 31 March 2024 have been prepared in compliance with Sri Lanka Accounting Standard LKAS 34 - Interim Financial Reporting. These interim condensed Financial Statements do not include all the information and disclosures required in the Annual Financial Statements, and should be read in conjunction with the Annual Financial Statements for the year ended 31 December 2023. Further, the provisions of the Companies Act no.7 of 2007, the Regulation of the Insurance Industry Act No 43 of 2000 and Colombo Stock Exchange have been considered in preparing these interim condensed Financial Statements. The same Accounting Policies and methods of computation as stated in the Annual Financial Statements - 2023 have been followed in preparing these interim condensed Financial Statements.
In preparing these condensed interim financial statements, management has made judgements and estimates that affect the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
The significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual Financial statements.
New SLFRS and Interpretations issued but not yet effective have not been early adopted during the period.
-
FAIR VALUE MEASUREMENT AND RELATED FAIR VALUE DISCLOSURES
During the period, there were no transfers between Level 1 and Level 2 and no transfers into or out of Level 3 categories as per the fair value hierarchy. The fair value changes on financial instruments in Level 3 category was properly recorded in the statement of other comprehensive income. As at the reporting date, fair value would not significantly change if one or more of the inputs of financial assets classified at level 3 were changed. - GROSS WRITTEN PREMIUM
For the Period ended 31 March | 2024 | 2023 | |
Rs. ' 000 | Rs. ' 000 | ||
Audited | Audited | ||
First Year Premium | 1,689,279 | 1,555,822 | |
Renewal Premium | 3,694,680 | 3,154,980 | |
Group Life Premium | 1,581,604 | 1,229,185 | |
Single Premium | 197,264 | 44,631 | |
Total Gross Written Premium | 7,162,827 | 5,984,618 |
Page 8 of 17
SOFTLOGIC LIFE INSURANCE PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS
6 | TOTAL NET REVENUE | ||
For the Period ended 31 March | 2024 | 2023 | |
Rs. ' 000 | Rs. ' 000 | ||
Audited | Audited | ||
Net written premiums | 6,527,187 | 5,345,006 | |
Other Revenue | 1,921,272 | 1,942,428 | |
Total Net Revenue | 8,448,459 | 7,287,434 | |
7 | FINANCE COST | ||
For the Period ended 31 March | 2024 | 2023 | |
Rs. ' 000 | Rs. ' 000 | ||
Audited | Audited | ||
Interest expenses on lease liabilities and loans and borrowings | (185,924) | (185,530) | |
Net exchange (losses) / gains | (185,575) | (381,968) | |
Other finance cost | (29,851) | (34,638) | |
Total Finance (Cost) / Gains | (401,350) | (602,136) | |
8 | PROFIT BEFORE TAXATION | ||
For the Period ended 31 March | 2024 | 2023 | |
Rs. ' 000 | Rs. ' 000 | ||
Audited | Audited | ||
Profit Before Taxation | 1,196,172 | 820,760 | |
Total | 1,196,172 | 820,760 |
The Company transferred Rs.932 Mn from Non participating fund to shareholder fund as surplus transfer for the quater ended 31 March 2024 (2023- 730 Mn).
9 INCOME TAX EXPENSE
The gains and profits from the Life Insurance Business are ascertained in terms of Section 67 of the Inland Revenue Act No. 24 of 2017. Accordingly, gains and profits on which tax is payable is the aggregate of;
Taxable Income Source | Applicable Tax Rate |
Surplus distributed to shareholders from the Life Insurance policyholders fund as certified | 30% |
by the actuary | |
Investment income of the shareholder fund less any expenses incurred in the production of | 30% |
such income | |
Surplus distributed to a Life insurance policyholder who shares the profits of a person | 30% |
engaged in the business of life insurance | |
Dividend paid out of profit recorded in shareholder fund are subject to income tax at 15%. |
Page 9 of 17
SOFTLOGIC LIFE INSURANCE PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS
10 | FINANCIAL INVESTMENTS | |||
As at | Note | 31.03.2024 | 31.12.2023 | |
Rs. ' 000 | Rs. ' 000 | |||
Audited | Audited | |||
Amortised Cost (AC) | 10.1 | 32,391,521 | 33,698,659 | |
Fair Value through Other Comprehensive Income (FVOCI) | 10.2 | 5,724,919 | 5,174,882 | |
Fair Value Through Profit or Loss (FVTPL) | 10.3 | 5,341,337 | 4,626,674 | |
Total Financial Investments | 43,457,777 | 43,500,215 | ||
10.1 | Amortised Cost (AC) | |||
Treasury Bonds | 18,757,521 | 18,408,368 | ||
Treasury Bills | 480,141 | 553,716 | ||
International Sovereign Bonds | 3,784,493 | 3,928,615 | ||
Bank Deposits | 910,471 | 919,403 | ||
Commercial Papers | 1,406,940 | 1,713,352 | ||
Securitized Papers | 514,081 | 577,371 | ||
Quoted Debentures | 5,967,319 | 6,251,253 | ||
Unquoted Debentures | 308,138 | 301,493 | ||
Reverse Repo | 262,417 | 1,045,088 | ||
32,391,521 | 33,698,659 | |||
10.2 | Fair Value through Other Comprehensive Income (FVOCI) | |||
Equity Securities: | ||||
Quoted | 2,700,694 | 1,759,999 | ||
Unquoted | - | 326,914 | ||
Treasury Bonds | 3,024,225 | 3,087,969 | ||
5,724,919 | 5,174,882 | |||
10.3 | Fair Value Through Profit or Loss (FVTPL) | |||
Treasury Bonds | 334,268 | 318,208 | ||
Unlisted Perpetual Debenture | 773,466 | 794,476 | ||
Unit Trust | 4,233,603 | 3,513,990 | ||
5,341,337 | 4,626,674 | |||
11 | INSURANCE CONTRACT LIABILITIES | |||
As at | Note | 31.03.2024 | 31.12.2023 | |
Rs. ' 000 | Rs. ' 000 | |||
Audited | Audited | |||
Insurance Contract Liabilities | 26,702,596 | 26,145,333 | ||
Surplus Created due to Change in Valuation method from NPV to GPV | 11.1 & 11.2 | 1,056,535 | 1,056,535 | |
Claim Payables | 790,680 | 723,606 | ||
28,549,811 | 27,925,474 | |||
Page 10 of 17
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Softlogic Life Insurance plc published this content on 10 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 May 2024 03:30:04 UTC.