April 7, 2025:Pakistan’s listed General (Non-Life) Insurance sector recorded a notable 35% year-on-year (YoY) increase in profits during 2024, reaching Rs17.4 billion.
This growth exceeds the five-year compound annual growth rate (CAGR) of 19%, according to a report published by Topline Securities. The sector’s improved profitability was mainly driven by better underwriting results and significant growth in investment income.
In 2024, Net Premiums rose by 25% YoY to Rs68.6 billion, driven by strong performance across all major segments including Fire & Property, Motor, and Marine. Over the last five years (2020–2024), Net Premiums have grown at a CAGR of 12%.
Investment income also showed impressive growth, increasing by 38% YoY to Rs16.7 billion from Rs12.1 billion in 2023. The rise is attributed to higher returns from fixed income and equity investments.
On the claims side, Net Claims increased by 20% in 2024, reaching Rs35.8 billion. Despite this increase, the Net Claims ratio improved slightly, standing at 52% compared to 54% in 2023 and the five-year average of 53%.
Underwriting profits surged by 130% YoY to Rs6.8 billion, maintaining a five-year CAGR of 18%. Underwriting margins strengthened to 9.9% in 2024 from 5.4% the previous year, above the five-year average of 7.3%.
Profit Before Tax (PBT) from Takaful operations also registered a positive trend, rising by 9% YoY to Rs2.2 billion.
Topline’s research further highlights that the three largest General Insurance companies by market capitalization contributed approximately 65% of the total sector profits in 2024, while the top five companies accounted for nearly 88% of sector profitability.
Among these top five players, United Insurance Company (UNIC) posted a 102% YoY profit increase to Rs2.03 billion, led by a 96% rise in underwriting profit to Rs2.1 billion and a substantial 251% YoY jump in investment income to Rs474 million.
Atlas Insurance (ATIL) also performed strongly, recording an 88% YoY profit increase to Rs1.9 billion, largely driven by a 214% rise in investment income, which also totaled Rs1.9 billion.
Adamjee Insurance Company (AICL) reported profit growth of 79% YoY, reaching Rs4.05 billion. The company returned to underwriting profitability, posting Rs152 million in 2024 versus a loss of around Rs1.4 billion in 2023. Its Net Claims ratio improved from 70% in 2023 to 65% in 2024, while investment income increased by 32% YoY to Rs5.1 billion.
The remaining top five companies also posted solid results. Jubilee General Insurance Company Limited (JGICL) reported a 21% YoY rise in profits, supported by a 40% increase in investment income. EFU General Insurance (EFUG) saw a 13% YoY increase in profits, driven by a 47% growth in underwriting profits.
In terms of premium growth, both AICL and UNIC outperformed the industry average with Net Premium increases of 40% and 41% respectively. Shaheen Insurance (SHNI) recorded the highest Net Premium growth in the sector, up 107% in 2024.
Finally, Net Claims ratios for UNIC (26%), ATIL (27%), EFUG (40%), and JGICL (51%) all remained below the industry average of 52%, reflecting more efficient claims management compared to the broader sector.
