Atlas Insurance Limited posted a strong improvement in profitability during the first quarter ended March 31, 2026, with profit after tax rising to Rs540.31 million, compared with Rs328.86 million in the same period last year.

According to the company’s unaudited financial results, released to the Pakistan Stock Exchange, the insurer’s earnings increased by approximately 64% year-on-year. Earnings per share also improved to Rs3.62, up from Rs2.20 a year earlier.

Premium income and underwriting performance improve

Atlas Insurance reported net insurance premium of Rs905.89 million for the quarter, compared with Rs819.11 million in the corresponding quarter of 2025, representing an increase of around 11%.

Net insurance claims stood at Rs261.69 million, while the company recorded net commission and other acquisition income of Rs26.39 million. Insurance claims and acquisition expenses amounted to Rs235.30 million, while management expenses increased to Rs350.39 million from Rs314.95 million.

Despite higher expenses, the company’s underwriting result improved to Rs320.20 million, compared with Rs287.02 million in the same quarter last year.

Investment income provides a major boost

A key contributor to the improved bottom line was investment income, which jumped to Rs534.95 million during the quarter from Rs220.80 million a year earlier.

The company also reported other income of Rs25.10 million. As a result, results of operating activities reached Rs851.27 million, compared with Rs511.77 million in the first quarter of 2025.

After finance costs and profit from the Window Takaful Operations, profit before tax rose to Rs879.91 million, against Rs537.07 million previously. Income tax expense increased to Rs339.60 million from Rs208.21 million.

Comprehensive income affected by investment valuation loss

Despite the sharp increase in reported profit, Atlas Insurance recorded a significant other comprehensive loss during the quarter.

The company reported an unrealized loss on available-for-sale investments of approximately Rs1.02 billion, compared with an unrealized gain of Rs176.67 million in the same period of 2025. Including other comprehensive items, total comprehensive loss stood at Rs480.49 million, compared with comprehensive income of Rs506.99 million a year earlier.

This difference highlights the impact of investment-market movements on the insurer’s overall comprehensive performance, even as its core profitability remained substantially stronger.

Balance sheet remains sizeable

Atlas Insurance reported total assets of Rs24.23 billion as of March 31, 2026, compared with Rs24.37 billion at the end of December 2025.

Investments remained the largest component of the balance sheet, including Rs11.73 billion in equity securities and approximately Rs3.09 billion in debt securities.

The company’s total equity stood at Rs10.51 billion, compared with Rs10.99 billion at the end of 2025. The decline was largely reflected in investment fair-value movements recorded during the quarter.

Operating cash flow remains positive

Atlas Insurance generated Rs110.39 million in net cash from operating activities during the quarter, compared with Rs14.31 million in the same period last year.

Underwriting activities generated net cash of Rs373.40 million, while other operating activities used Rs263.01 million. Investment activities generated a net Rs42.90 million, while financing activities resulted in a cash outflow of Rs19.97 million.

Cash and cash equivalents stood at Rs1.31 billion at March 31, 2026, slightly above Rs1.30 billion a year earlier.

No dividend or bonus shares announced

The company’s board meeting held on April 24, 2026, recommended no cash dividend, bonus shares or right shares for the quarter ended March 31, 2026.

Overall, Atlas Insurance’s first-quarter results show a substantial improvement in underlying profitability, supported by stronger premium income, underwriting performance and investment income. However, the large unrealized loss on available-for-sale investments weighed heavily on comprehensive income and remains an important factor for investors to watch in the coming quarters.