April 7, 2025: The public insurance sector in Pakistan (non -life) recorded a remarkable increase by 35 % on an annual basis (YO) in profits during the year 2024, reaching 17.4 billion rupees.
This growth rate exceeds the five -year compound growth rate (CAGR) of 19 %, according to a report published by Topine Securities. The improved profitability of the sector was mainly driven by the results of the subscription better and a significant growth in investment income.
In 2024, the net installments increased by 25 % year on an annual basis to 68.6 billion rupees, driven by strong performance in all major sectors including Fire & Priorty, Motor and Marine. Over the past five years (2020-2024), net installments have grown at an annual compound rate of 12 %.
Investment income also showed impressive growth, increasing 38 % year on year to 16.7 billion rupees from 12.1 billion rupees in 2023. The rise is to higher returns than fixed income and stock investments.
On the side of the claims, net claims increased by 20 % in 2024, reaching 35.8 billion rupees. Despite this increase, the percentage of clear demands improved slightly, standing 52 % compared to 54 % in 2023 and the five -year average of 53 %.
The subscription profits increased by 130 % year on an annual basis to 6.8 billion rupees, while maintaining the age of the annual manager for a period of five years of 18 %. The subscription margins were strengthened to 9.9 % in 2024 of 5.4 % in the previous year, higher than the five -year average of 7.3 %.
The profit pre -tax (PBT) of Takafull has a positive trend, increased by 9 % on an annual basis to 2.2 billion rupees.
Topline’s research also highlights that the three largest public insurance companies through the market value contributed about 65 % of the total profits of the sector in 2024, while the first five companies represent approximately 88 % of the sector’s profitability.
Among these first five players, the United Insurance Company (UNIC) increased by 102 % on an annual basis of 2.03 billion rupees, led by a 96 % increase in subscription profit to 2.1 billion rupees and a large jump by 251 % on an annual basis to 474 million rupees.
The performance of ATLAS Insurance (ATIL) was strongly, as it recorded an increase in profit by 88 % on an annual basis to 1.9 billion rupees, largely driven by increasing investment income by 214 %, which reached a total of 1.9 billion rupees.
Adamje Insature Company (AICL) has registered a 79 % growth growth on an annual basis, reaching 4.05 billion rupees. The company returned to the profitability of the subscription, as it published 152 million rupees in 2024 compared to a loss of about 1.4 billion rupees in 2023. The percentage of net demands improved from 70 % in 2023 to 65 % in 2024, while investment income increased by 32 % on an annual basis to 5.1 billion rupees.
The remaining five companies also published strong results. Jubilee General Insurance Company Limited (JGICL) recorded a 21 % annual increase in profits, with a 40 % increase in investment income. EFU General Insurance (EFG) witnessed an annual increase in profits, driven by 47 % growth in subscription profits.
In terms of outstanding growth, both AICL and UNIC outperformed the average industry with an increase of 40 % and 41 % net, respectively. Shaheen Insurance (SHNI) recorded the highest net growth in the sector, an increase of 107 % in 2024.
Finally, the levels of net demand for UNIC (26 %), ATIL (27 %), EFG (40 %), and JGICL (51 %) remained less than the average industry of 52 %, reflecting the most efficient demand management compared to the wider sector.
