KARACHI - Adamjee Insurance Company Limited (AICL) is expected to receive Rs200 million worth insurance claims from the power, telecom and agriculture sectors, which suffered heavy losses due to devastating floods in certain parts of the country, an analyst said on Monday. According to analyst, the companys crop and livestock coverage portfolio, owing to facing an extensive damage of $2.3 million to stand crops and nearly $450 million to live stock including poultry, is at risk despite the fact that the company has low exposure towards both sectors insurance segment, which accounts for 3-4 per cent in the companys total insurance business. AICL may witness higher insurance claims from power and telecom sectors whose infrastructures and installations were badly affected by heavy floods. The company has a considerable exposure to these sectors of economy, said Bilal Qamar, analyst at JS Global Research. AICLs share in the AES power plants is not more than 15 per cent, while the rest is insured by foreign insurance companies, he added. Meanwhile, the company in its 1H2010 result reported a profit after tax of Rs299 million (EPS: Rs2.41), showing a decline of 49 per cent YoY. Declining investment and other income (down 60pcYoY and 22pcYoY, respectively) coupled with a decrease (2pcYoY) in underwriting results were main reasons for the poor performance in 1H2010. In the wake of this result and the flood losses, the full year 2010 earnings of the company are likely to decline to Rs5.5 per share from Rs7.6 per share previously. As per financial results, the underwriting turnover of the company dipped by 2 per cent YoY to Rs392 million. Declining net premiums (down 4pcYoY) and higher claims (up 40bps to 63.7pc) & combined ratio (up 130bps to 81.3pc), were major factors for the worsened performance. However, this impact was mitigated by the major support that came in from the international operations, where the underwriting results witnessed an increase of 16 per cent YoY. Business underwritten outside Pakistan contributed 45 per cent towards the total underwriting result of the company (42pc in 1H2009). Segment wise break up shows that Fire & Property and Marine claims ratio went up by 15 and 11 percentage points to 64.2 per cent and 48.8 per cent, respectively. While for the Motor and Miscellaneous segment the same fell by 4 and 11 ppts to 66.8 per cent and 70.5 per cent respectively.