EFU Life Assurance Limited has reported a profit after tax of Rs394.8 million for the three months ended March 31, 2026, compared with Rs638.9 million in the same period last year, according to its unaudited first-quarter financial statements.

The results show that while the company continued to grow its premium business, investment-related performance and other factors weighed on overall profitability during the quarter.

Premium revenue posts strong growth

EFU Life’s premium and contribution revenue increased to Rs15.69 billion in the first quarter of 2026 from Rs13.93 billion a year earlier. After premiums ceded to reinsurers, net premium/contribution revenue stood at Rs14.59 billion, compared with Rs12.52 billion in the corresponding quarter of 2025.

The increase indicates continued expansion in the company’s core insurance business despite the decline in bottom-line earnings.

Investment performance weighs on earnings

Investment income stood at Rs6.39 billion during the quarter, down from Rs8.01 billion in the same period last year. More notably, the company recorded a net unrealised fair value loss of Rs13.60 billion on financial assets carried at fair value through profit or loss.

As a result, net income fell to around Rs7.31 billion, compared with Rs19.60 billion in the first quarter of 2025. The weaker investment-related performance was a major factor behind the decline in profitability.

Profit and earnings per share decline

EFU Life’s profit before tax was reported at Rs657.4 million, compared with Rs959.2 million in the same quarter of 2025. Profit after tax subsequently came in at Rs394.8 million, down from Rs638.9 million.

Earnings per share also declined to Rs3.76, compared with Rs6.16 in the corresponding period last year.

The company’s total comprehensive income stood at Rs366.6 million, compared with Rs605.0 million a year earlier, reflecting the impact of other comprehensive losses during the quarter.

Dividend declared

Despite the decline in quarterly earnings, EFU Life’s board approved the first interim cash dividend for 2026 at Rs1.50 per share, equivalent to 15%. The announcement was made following the board meeting held on April 23, 2026.

The company’s financial position remained substantial, with total assets of approximately Rs288.05 billion as of March 31, 2026. Total equity stood at around Rs9.38 billion, while total liabilities were approximately Rs278.67 billion.

Cash flows remain under pressure

The cash flow statement shows that EFU Life generated negative cash flow from operating activities of approximately Rs2.37 billion during the quarter. At the same time, investing activities generated positive cash flow of around Rs660.5 million, while financing activities recorded an outflow of approximately Rs1.14 billion, largely reflecting dividend payments.

Cash and cash equivalents stood at about Rs6.39 billion at March 31, 2026, compared with Rs9.24 billion at the beginning of the year.

Outlook

EFU Life’s first-quarter results present a mixed picture. The company achieved solid growth in premium revenue, highlighting continued strength in its insurance operations. However, weaker investment income and significant fair-value losses on financial assets substantially reduced profitability.

For investors, the continuation of dividend payments alongside premium growth may remain an important positive, while the performance of the company’s investment portfolio will be a key factor to watch in the coming quarters.

Overall, EFU Life entered 2026 with stronger premium generation but lower quarterly profitability, as investment-market movements overshadowed growth in its core insurance business.