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Adamjee Insurance Company Limited (AICL) has achieved a remarkable financial turnaround, leveraging investment gains to drive profitability during the nine months ended September 30, 2024, reports WealthPK.

During the period under review, AICL’s investment income surged 27% to Rs3.93 billion, driven by a diversified portfolio of equities, debt instruments, and term deposits. Furthermore, by balancing risk and return, AICL successfully navigated market fluctuations and maximized profitability. The company’s total investments in equity securities also surged, reaching Rs31.04 billion in 9MCY24 from Rs24.87 billion in 9MCY23, highlighting its strong financial positioning.

Additionally, AICL posted impressive financial results, driven by a strong surge in premiums and a remarkable turnaround in underwriting performance. The company’s gross premium improved to Rs43.89 billion, while net premium increased to Rs19.06 billion during the period under review. This growth reflects AICL’s strategic focus on improving underwriting results and maximising investment income.

AICL’s underwriting gains soared 134%, boosting pre-tax profit by 50% to Rs4.93 billion, while post-tax profit rose 60% to Rs2.98 billion. Moreover, the company implemented rigorous risk assessment protocols and streamlined claims processing, which reduced net insurance claims during 9MCY24. Additionally, AICL maintained disciplined cost management, ensuring that management expenses remained controlled without compromising service quality.

These proactive measures have bolstered profitability and reinforced AICL’s position as a leading insurance provider in Pakistan. AICL remains confident in sustaining its growth momentum despite economic uncertainties and inflationary pressures. Pakistan’s improving economic conditions, including GDP growth and easing inflation, are creating opportunities for the insurance sector.

Furthermore, the State Bank of Pakistan’s decision to initiate a monetary easing cycle through policy rate cuts is expected to boost business confidence and drive demand for insurance products. Hence, AICL is strategically positioned to capitalise on improving market conditions through its diversified portfolio and customer-focused approach. Moreover, AICL has demonstrated resilience and innovation by leveraging investment gains to drive profitability despite market challenges.

The company continues to solidify its leadership in Pakistan’s insurance sector with significant growth in premiums, improved underwriting performance, and substantial investment income. AICL’s commitment to operational excellence and strategic investments positions it for sustained success, ensuring long-term value for shareholders and enhanced financial security for clients.

Credit: INP-WealthPk