TPL Life Insurance Company Limited (TPLL) reported loss per share of PKR 1.54 for CY25, compared to loss per share of PKR 0.93 in CY24. In 2021, nearly 90% of the company’s business was corporate-led. By CY25, the business mix had shifted significantly, with retail contributing 88% and corporate accounting for only 12%.
Management intentionally shed approximately PKR 300mn of corporate business in 2022, followed by additional reductions in subsequent years, as corporate accounts typically carry high claim ratios of 80–85% and low margins of 5–10%. In contrast, the retail model, despite higher acquisition costs, offers lower claim ratios and healthier margins of 25–30%.
The company is targeting the mass market through microfinance banks, such as Mobilink Bank, which provide access to a significantly larger addressable market of approximately 40mn customers compared to conventional banks. The ULIP takaful segment was launched in early 2024 through an exclusive partnership with Dubai Islamic Bank. Management expects this segment to contribute PKR 250–300mn in 2026. TPL Life maintains one of the lowest claim ratios in the industry at 27%, slightly higher than 23% recorded in 2024.
Acquisition costs remain elevated at approximately 50%. Management explained that this is a characteristic of the retail/bancassurance model, where distributors and call centers retain a significant share of the premium. Lower investment income was attributed to the downward trend in interest rates, particularly KIBOR, along with payments made to reinsurers during the year. Management noted that one off costs incurred in the previous year, including reverse merger expenses of PKR 95mn and legal fees, are not expected to recur going forward.
Important Disclosures
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