Adamjee Life Assurance Company Limited reported a notable decline in profitability for the quarter ended March 31, 2026, as lower premium revenue and significant unrealised losses on financial assets weighed on its bottom line.
According to the company’s unaudited financial statements, profit after tax fell to Rs91.29 million in the first quarter of 2026, compared with Rs122.94 million in the same period last year, representing a decline of around 26%. Earnings per share also dropped to Rs0.35 from Rs0.47.
The company’s premium and contribution revenue declined to Rs8.24 billion from Rs9.47 billion a year earlier. After accounting for premiums ceded to reinsurers, net premium and contribution revenue stood at Rs8.08 billion, down from Rs9.29 billion in the corresponding period.
Investment income, however, remained broadly stable at Rs2.87 billion, compared with Rs2.86 billion in the first quarter of 2025. The company also recorded net realised fair value gains of Rs162.10 million.
The major drag on earnings came from unrealised fair value losses on financial assets, which surged to Rs3.59 billion during the quarter from Rs353.84 million in the same period last year. This pushed the company into a net loss position before the impact of other income and expenses at an earlier stage of the income statement.
Higher Insurance Benefits Add Pressure
Adamjee Life also faced increased insurance-related costs during the quarter. Insurance and takaful benefits rose to Rs9.98 billion, compared with Rs7.52 billion a year earlier. After recoveries from reinsurers and other related items, net insurance and takaful benefits stood at Rs9.75 billion.
At the same time, the company recorded a Rs3.57 billion positive change in insurance and takaful liabilities, compared with a negative change of Rs3.27 billion in the corresponding quarter of 2025. Acquisition expenses increased to Rs945.19 million, while marketing and administration expenses reached Rs360.78 million.
As a result, results from operating activities stood at Rs146.16 million, compared with Rs201.14 million last year. After finance costs and taxation, the company posted its quarterly profit of Rs91.29 million.
Assets Remain Above Rs131 Billion
Despite the pressure on earnings, Adamjee Life maintained a substantial asset base. Total assets stood at Rs131.91 billion as of March 31, 2026, compared with Rs134.59 billion at the end of December 2025.
The company held Rs92.84 billion in government securities, while equity securities amounted to Rs15.13 billion. Investments in open-ended mutual funds stood at Rs6.79 billion, and cash and bank balances increased to Rs7.04 billion from Rs6.41 billion at the end of 2025.
Total equity increased to Rs6.46 billion from Rs6.33 billion at December 31, 2025, while total liabilities declined to Rs125.45 billion from Rs128.26 billion.
Cash Position Improves
Adamjee Life’s cash position showed improvement during the quarter. The company generated Rs3.05 billion from investing activities, largely supported by proceeds from investments, compared with an outflow of Rs2.16 billion in the same period last year.
However, operating activities consumed Rs2.36 billion in cash, mainly reflecting underwriting-related outflows. The company ended the quarter with cash and cash equivalents of Rs7.04 billion, up from Rs3.66 billion at March 31, 2025.
Overall, Adamjee Life entered 2026 with a stronger cash position and a sizeable investment portfolio, but its first-quarter profitability came under pressure from weaker premium revenue, higher insurance benefits and, most significantly, a sharp increase in unrealised losses on financial assets. The results highlight how movements in investment markets can have a meaningful impact on the earnings of life insurance companies.
