PAKRI reported earnings per share of PKR 3.48 in CY25 (CY24: PKR 4.20). In 1QCY26, earnings per share stood at PKR 0.64 (1QCY25: PKR 0.60). Company’s gross premium increased by 29% to PKR 31.9 billion (up from PKR 24.7 billion), largely driven by business from PIA and various insurance sectors.
A significant portion of PAKRI’s profitability is derived from its investment activities. Total investments stand at PKR 26.8 billion in which Equity Investments stood at PKR 10 billion. The company maintains a policy where up to 50% of the portfolio can be held in common securities (equities), though currently, there is a strong lean toward fixed-income securities to benefit from higher interest rates. The weighted maturity of the portfolio is approximately four years. Management noted that fluctuations in GDP and interest rates directly affect business growth.
High interest rates impact investment valuations, though the company notes that its claim ratio (historically 52–54%) is not directly linked to interest rate shifts. Recent floods have increased the risk profile of certain sectors, leading to a concentrated impact on specific insurance events. Potential market liberalization allowing international branches to set up in Pakistan may increase competition, though management believes their local relationships and data give them an edge. Going forward, management stated that they expect their premiums growth to exceed the national GDP growth rate.
Important Disclosures
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