The Universal Insurance Company Limited (UIC) has reported a profit after taxation of Rs. 11.76 million for the nine months ended September 30, 2026, according to its unaudited interim financial statements approved by the company’s Board of Directors on October 22, 2026.

The company’s financial results show a decline in profitability compared with the corresponding period last year, when UIC recorded a profit after taxation of Rs. 31.18 million. Earnings per share (EPS) also decreased to Rs. 0.24, compared with Rs. 0.62 in the same period of 2025.

Revenue and Profitability Performance

For the nine-month period, UIC reported net insurance premiums of Rs. 48.81 million, compared with Rs. 23.77 million in the corresponding period last year. This represents a substantial increase in net premium income.

However, the company faced higher insurance-related costs and management expenses. Net insurance claims stood at Rs. 10.10 million, while the company reported a premium deficiency of Rs. 1.48 million and net commission expenses of Rs. 1.24 million. Total insurance claims and expenses amounted to Rs. 12.82 million.

Management expenses increased to Rs. 71.25 million from Rs. 58.11 million a year earlier. As a result, the company recorded an underwriting loss of Rs. 35.26 million, compared with an underwriting loss of Rs. 9.99 million in the corresponding period of 2025.

Investment income provided important support to overall earnings, rising to Rs. 27.40 million from Rs. 23.77 million. The company also reported rental income of Rs. 1.03 million and other income of Rs. 26.89 million during the period.

Despite these income sources, profit before taxation declined to Rs. 14.42 million from Rs. 34.37 million in the same period last year. After taxation, the company’s profit stood at Rs. 11.76 million.

Balance Sheet Strengthens

UIC’s total assets increased to Rs. 945.37 million as of September 30, 2026, compared with Rs. 907.98 million at December 31, 2025.

Total equity rose to Rs. 750.88 million from Rs. 727.19 million over the same period. Accumulated profit increased to Rs. 81.996 million from Rs. 51.654 million, while cash and bank balances improved to Rs. 31.04 million from Rs. 23.92 million.

The company’s total liabilities increased to Rs. 194.48 million from Rs. 180.79 million at the end of 2025. Outstanding claims, including incurred but not reported claims, stood at Rs. 82.10 million, compared with Rs. 74.56 million previously.

These figures indicate growth in the company’s asset base and equity, although the increase in liabilities and underwriting costs remains an important factor to monitor.

Board Recommends 100% Right Issue

Alongside the financial results, UIC’s Board of Directors has recommended issuing 50 million ordinary shares through a right issue. The proposed issue will be offered to existing shareholders in proportion to their current holdings at a price of Rs. 10 per share.

The recommendation provides for 100 ordinary shares for every 100 shares held, equivalent to a 100% right issue. The company has not announced a cash dividend or bonus shares for the period.

According to the company’s notice, the dates for closure of the share transfer books and determination of shareholders’ entitlement to the right shares will be communicated later, following finalisation of the relevant offer documents in accordance with the Companies (Further Issue of Shares) Regulations, 2020.

The proposed right issue will be an important development for existing shareholders, who will need to review the final offer terms and timetable once formally announced.

Cash Flow and Financial Position

UIC reported cash and cash equivalents of Rs. 31.04 million at September 30, 2026, compared with Rs. 40.85 million at September 30, 2025.

Net cash outflows from operating activities amounted to Rs. 5.30 million during the nine-month period, against net cash inflows of Rs. 60.55 million in the corresponding period last year. Investing activities generated net cash inflows of Rs. 12.42 million, helping the company record an overall net cash inflow of Rs. 7.12 million across its activities.

The cash flow figures reflect the impact of operating pressures and investment-related transactions during the period.

Outlook

The Universal Insurance Company’s latest results present a mixed financial picture. Higher net insurance premiums, investment income and total assets indicate growth in several areas of its business. However, the significant increase in underwriting losses, management expenses and the decline in net profit highlight challenges in maintaining profitability.

Investors will likely focus on the company’s ability to manage claims and operating costs, improve underwriting performance and sustain earnings in the coming quarters. The proposed right issue will also remain a key development for shareholders as further details become available.

The financial statements are unaudited, and the proposed right issue remains subject to the completion of the required offer documentation and related formalities.