EFU Life Assurance Company Limited (EFUL) reported earnings per share of PKR 23.26 for CY25, compared to earnings per share of PKR 29.04 in CY23. Furthermore, in 4QCY25, the company reported earnings per share of PKR 5.97, compared to earnings per share of PKR 8.52 in the same period last year (SPLY).
Gross premium reached PKR 57.05bn, reflecting a 37% increase and marking the highest growth recorded in the past five years. The company maintains the largest private sector life insurance balance sheet. Total claims rose to PKR 12.61bn in CY25, compared to PKR 7.89bn in SPLY, primarily driven by the full year impact of the health insurance business.
The company recently obtained an SECP license for the VPS, enabling the launch of both individual and corporate VPS products, along with annuity solutions. A key highlight is the revamped individual health plan, “Mukamal Sehat,” launched in Q3 CY25, which has seen a strong market response.
Additionally, the company is planning to launch corporate retirement solutions. Distribution continues to be a key strategic pillar, with a balanced 50/50 split between the conventional sales force and bancassurance channels. The industry is preparing for the transition to IFRS alongside the implementation of Risk Based Capital requirements, with the minimum paid up capital threshold set to increase to PKR 3bn by 2030.
Management highlighted the potential imposition of provincial sales tax on premiums and the withdrawal of tax credits on life insurance as significant challenges for the industry. On the investment side, the government securities portfolio is heavily skewed towards short term T-bills and floating rate instruments, with a duration of less than one year and an average yield of approximately 11–12%. Management indicated that the company is well positioned to navigate a high inflation environment through its focus on digital and inclusive insurance products.
Important Disclosures
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