Pakistan’s listed General (Non-Life) Insurance sector recorded a 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 note by brokerage firm Topline Securities.
Better underwriting results and significant growth in investment income mainly drove the sector’s improved profitability.
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.
