Jubilee General Insurance Limited (JGICL) reported a net profit of PKR 2.58 billion (EPS: PKR 13.00) in 9MCY24, a significant increase from PKR 1.96 billion (EPS: PKR 9.90) in 9MCY23. Net insurance premium for 9MCY24 rose by 6% year-on-year to PKR 5.54 billion compared to PKR 5.24 billion in the corresponding period last year. The portfolio mix was comprised of fire at 43%, miscellaneous at 19%, accident and health at 14%, motor at 12%, marine at 8%, and liability at 4%. Management reported that all business lines contributed to topline growth, alongside an expansion in the client base.
However, motor and health business segments faced a decline, attributed to the negative impact of Pakistan’s struggling auto industry. The miscellaneous category showed significant growth due to the introduction of valueadded products. JGICL holds a market share of 10.65% and ranks third in terms of gross written premium, following EFU and Adamjee. Its top 50% of customers contribute 35-38% to the topline, indicating no risk of concentration.
Management noted that investment income is expected to decline due to lower yields but anticipates this will be offset by higher returns on equities, which constitute 35% of its investment portfolio. Despite this, the company has no plans to increase its equity exposure due to liquidity considerations. JGICL is also collaborating with the SECP to advance thirdparty insurance.
Going forward, management aims to maintain the current payout ratio and expects the auto industry to recover in the next quarter, potentially revitalizing the motor segment. While cautiously optimistic about future growth given macroeconomic conditions, the company projects an 18- 20% growth by the end of the financial year.
Important Disclosures
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