Karachi, August 27, 2026: Habib Insurance Company Limited has reported a significant improvement in its financial performance for the six months ended June 30, 2026, with profit after tax rising sharply compared with the same period last year.
According to the company’s financial statements, profit after tax increased to Rs264.02 million in the first half of 2026, compared with Rs148.98 million recorded during the corresponding period of 2025. This represents growth of around 77% year-on-year. Earnings per share also improved to Rs2.13, compared with Rs1.20 a year earlier.
The company’s operating performance also showed notable gains. Net insurance premium reached Rs1.237 billion during the six-month period, compared with Rs858.04 million in the same period of 2025. Investment income increased to approximately Rs351.27 million, from Rs262.49 million previously, providing an additional boost to overall earnings.
For the quarter ended June 30, 2026, Habib Insurance recorded profit after tax of approximately Rs175.54 million, compared with Rs55.51 million in the same quarter of 2025. Quarterly earnings per share consequently rose to Rs1.42, from Rs0.45.
Board Recommends 61.45% Bonus Shares
Alongside the financial results, the company announced a significant benefit for shareholders. The Board of Directors, in its meeting held on August 27, 2026, recommended the issuance of 61.45 bonus shares for every 100 shares held, equivalent to a 61.45% bonus share issue.
The bonus shares will be issued to shareholders whose names appear in the company’s Register of Members as of September 7, 2026. The share transfer books will remain closed on September 8, 2026, with transfers received by the close of business on September 7 being considered for entitlement purposes.
The company did not recommend any cash dividend or right shares along with the bonus issue.
Equity Base Strengthens
Habib Insurance’s balance sheet also remained substantial. As of June 30, 2026, total assets stood at approximately Rs8.23 billion, compared with Rs7.77 billion at the end of December 2025. Total equity increased to around Rs2.40 billion, from Rs2.37 billion at year-end 2025.
The company reported investments of more than Rs2.95 billion, comprising equity and debt securities, while insurance and reinsurance-related receivables remained a significant component of its assets.
Cash Flow Remains an Area to Watch
Despite the strong improvement in profitability, the cash flow statement presents a more mixed picture. Net cash flows from operating activities were negative Rs509.78 million during the first six months of 2026, compared with positive Rs187.70 million in the same period last year.
However, investing activities generated net cash inflows of approximately Rs460.82 million, partly offsetting the operating cash outflow. Financing activities recorded an outflow of around Rs85.22 million, primarily reflecting dividend payments and financial-related payments.
Overall, Habib Insurance enters the second half of 2026 with stronger earnings, higher insurance premiums and improved investment income. The recommended 61.45% bonus share issue further highlights the board’s decision to reward shareholders while retaining capital within the business.
The company said its quarterly report for the period ended June 30, 2026, would be transmitted through PUCARS separately within the specified time.
