Pakistan Listed Non-Life Insurance Profits up 35% in 2024
Staff Report
Pakistan Listed Non-Life Insurance Profits was Rs17.4bn in 2024 which is up by 35% YoY compared to 2023 and better than last 5-year CAGR of 19%.
Higher profits are led by better underwriting results and higher Investment Income.
In 2024 Net Premiums increased by 25% YoY to reach Rs68.6bn compared to 2023. Net premiums have increased due to growth in all major segments including Fire & Property, Motor, and Marine.
Net Premiums of listed General Insurance companies have posted a 5-year CAGR (2020-2024) of 12%.
Investment income of these Insurance companies increased by 38% YoY in 2024 to Rs16.7bn compared to Rs12.1bn in 2023. Higher investment income is due to higher returns from fixed-income/equity investments.
Net Claims of the General Insurance sector have increased by 20% in 2024 to Rs35.8bn. Net Claims have increased at a 5-year (2020-2024) CAGR of 11%.
Net Claims ratio in 2024 stood at 52% compared to 54% in 2023 and last 5-year average Net Claims ratio of 53%.
Underwriting profits increased by 130% YoY to Rs6.8bn in 2024. Underwriting results of general insurance companies have increased at a 5-year CAGR of 18%.
Underwriting margins have increased to 9.9% in 2024 compared to 5.4% in 2023. The last five-year average margins stand at 7.3% for General Insurance companies.
Profit Before Tax (PBT) from Takaful Operations has improved by 9% YoY to Rs2.2bn.
The top three, by Market Cap, and Non-Life (General) insurance companies contributed ~65% of profitability to the sector in 2024. Meanwhile, the top five companies have contributed ~88% to the non-life insurance profitability.
The non-life insurance sector posted profit growth of 35% YoY in 2024, and among the Top five companies, United Insurance (UNIC), Atlas Insurance (ATIL), and Adamjee Insurance (AICL) posted higher than industry average profits.
UNIC profits increased by 102% YoY to Rs2.03bn in 2024. The main reason for increased profitability is underwriting results increasing by 96% YoY to Rs2.1bn in 2024. Investment income also posted an increase of 251% YoY to Rs474mn.
ATIL profits increased by 88% YoY to Rs1.9bn in 2024, mainly due to the Investment income of the company increasing by 214% in 2024 to Rs1.9bn.
AICL posted profit growth of 79% YoY in 2024 to Rs4.05bn. The company has posted underwriting profits of Rs152mn in 2024 compared to an Underwriting loss of ~Rs1.4bn in 2023. Net claims ratio of the company improved to 65% in 2024 vs 70% in 2023. Investment income of the company increased by 32% YoY in 2024 to Rs5.1bn.
Among the remaining two top five Non-Life insurance companies, JGICL and EFUG profits increased by 21% and 13% YoY respectively due to a 40% increase in Investment Income and a 47% increase in underwiring profits.
Net premiums of non-life insurance companies increased by 25% YoY in 2024 and among the top five companies AICL and UNIC posted above-industry average Net premium growth of 40% and 41% respectively.
Overall, Shaheen Insurance (SHNI) posted the highest Net Premium growth of 107% in 2024.
Among the Top five companies Net Claims ratio of UNIC, ATIL, EFUG, and JGICL stood at 26%, 27%, 40%, and 51%, below the industry average Net Claims ratio of 52%.
