IGI Life Insurance Limited reported a profit after taxation of Rs157.2 million for the half year ended June 30, 2026, compared with Rs168.9 million in the same period last year, according to its financial results submitted to the Pakistan Stock Exchange.
The company’s Board of Directors approved the financial results at a meeting held on August 21, 2026. No cash dividend, bonus shares, rights shares or other corporate action were recommended for the period.
Premium Revenue Declines
IGI Life’s gross premium/contribution revenue stood at Rs5.10 billion during the first half of 2026, down from Rs7.14 billion in the corresponding period of 2025. Net premium/contribution revenue also declined to Rs4.88 billion from Rs6.90 billion.
The decline in premium income came despite investment-related gains during the period. Investment income was recorded at Rs682.9 million, compared with Rs828.8 million a year earlier. At the same time, net realised fair value gains on financial assets increased substantially to Rs828.8 million, compared with Rs417.3 million in the first half of 2025.
Higher Insurance Benefits Put Pressure on Results
Insurance benefits increased to approximately Rs7.05 billion in the six-month period, compared with Rs5.25 billion a year earlier. After recoveries from reinsurers and retakaful operators, net insurance benefits amounted to about Rs6.98 billion.
The company also recorded a change in insurance liabilities of negative Rs523.6 million, while acquisition expenses reached Rs861.2 million and marketing and administration expenses stood at Rs726.1 million.
As a result, profit before taxation declined to Rs220.4 million, compared with Rs244.7 million in the same period of 2025. Profit after taxation consequently fell to Rs157.2 million from Rs168.9 million, while earnings per share decreased to Rs0.92 from Rs0.99.
Assets Remain Above Rs41 Billion
The company’s total assets stood at approximately Rs41.15 billion as of June 30, 2026, compared with Rs43.68 billion at the end of December 2025.
Investments remained the largest component of the balance sheet. Mutual fund investments increased to around Rs25.00 billion from Rs23.36 billion at the end of 2025, while government securities stood at approximately Rs10.72 billion, down from Rs14.73 billion. Total equity rose to about Rs2.83 billion from Rs2.70 billion at year-end 2025.
Cash Flow Shows Investment Activity
The cash flow statement for the half year showed a Rs3.02 billion net cash outflow from underwriting activities, compared with a Rs1.12 billion inflow in the same period of 2025.
However, investment activities generated a net cash inflow of approximately Rs4.62 billion. The company received Rs348.7 million in investment returns and Rs20.4 million in dividends, while proceeds from the disposal of investments reached Rs83.83 billion against investment payments of Rs79.54 billion.
Cash and cash equivalents stood at approximately Rs4.78 billion at June 30, 2026, compared with Rs5.36 billion at the end of June 2025.
Overall Performance
IGI Life’s first-half results reflect a mixed performance, with lower premium revenue and higher insurance benefits weighing on profitability. Nevertheless, stronger realised gains on financial assets and an increase in shareholders’ equity provided some support.
With profit after tax remaining above Rs157 million and total assets exceeding Rs41 billion, the company continues to maintain a substantial financial position, although the decline in premium revenue remains an important area to watch in the coming quarters.
