KARACHI - Despite tough economic conditions, the underwriting profits of Adamjee Insurance (AICL) increased to Rs557 million in nine months of current calendar year. In terms of growth, AICL underwriting profitability swelled by 241 per cent while its net premiums declined by 5 per cent YoY during January-September 2009. This sharp increase in underwriting segment is attributed to fall in claims ratio and control over commissions as the claims ratio fell by 64 per cent in 9M2009 as against of showing 71 per cent in 9M2008 while the combined ratio of claims and commission was recorded at 89 per cent as against of 97 per cent in Jan-Sep 2009. Analysts believe that the most encouraging aspect of AICLs results in 9M2009 has been the impressive performance of its core business. According to JS report, the profitability statistics of AICL highlight the qualitative nature of AICLs insurance portfolio, even in such challenging macro conditions and are seconded by a 6 per cent decline in gross premiums. A closer look reveals that the Motor Segment (51 per cent share) and Marine 15 per cent share, all witnessed improvement in their claims ratios, though premiums remained lackluster. Report further stated that Rs1.8 billion worth of reversal of impairment due to a rebound in equity markets has brought investment income to Rs 2.3 billion (Rs20 per share) during 9M2009. The rebound in equity markets since hitting a trough in Jan 09 has also helped propel the portfolio value of equity investments to Rs 7.9 billion (Rs71 per share). JS predicts with an improved economic outlook for 2010, Adamjee has positioned itself strongly to tap potential benefits, whilst maintaining a balanced insurance portfolio. Improved economic fundamentals, reduced business risk and a positive outlook for equity markets remain major positives Adamjee Insurances future. Report indicated that another factor augmenting AICLs attractiveness is its quality investment portfolio, which has seen its value rise in the backdrop of a rebound witnessed in equity markets. The portfolio alone is currently worth Rs8.3b (Rs74 per share), report estimates.