EFU Life Assurance Limited has announced its financial results for the nine months ended September 30, 2026, declaring a third interim cash dividend of Rs1.50 per share, equivalent to 15%, for the year 2026.
According to the company’s notice submitted to the Pakistan Stock Exchange (PSX) on October 27, 2026, the Board of Directors reviewed and approved the company’s unaudited third-quarter financial statements at a meeting held in Karachi.
Profit Declines 9% Year-on-Year
EFU Life Assurance reported a profit after tax of Rs1.65 billion for the nine-month period, compared with Rs1.82 billion in the corresponding period of 2025. This represents a decline of approximately 9.1% year-on-year.
Profit before tax stood at Rs2.49 billion, down from Rs2.95 billion recorded during the same period last year. Earnings per share (EPS) decreased to Rs15.72 from Rs17.29.
The decline in profitability came despite growth in premium and contribution revenue, as higher insurance-related costs and changes in investment performance affected the overall results.
Premium Revenue Shows Strong Growth
The company recorded premium and contribution revenue of Rs47.96 billion during the first nine months of 2026, compared with Rs39.79 billion in the corresponding period of the previous year.
Net premium and contribution revenue, after premiums ceded to reinsurers, increased to Rs44.78 billion from Rs36.55 billion, reflecting continued growth in the company’s insurance business.
Net investment income, however, declined to Rs20.51 billion from Rs22.16 billion in the same period last year. This reduction, along with higher net insurance benefits and other expenses, contributed to the decline in earnings.
Third-Quarter Performance Weakens
During the July-September quarter of 2026, EFU Life Assurance posted a profit after tax of Rs360.88 million, compared with Rs598.78 million in the same quarter of 2025.
Quarterly earnings per share fell to Rs3.44 from Rs5.70. Profit before tax declined to Rs600.71 million from Rs991.92 million year-on-year.
Net premium and contribution revenue for the quarter increased to Rs15.04 billion from Rs12.54 billion. However, lower investment income and higher insurance-related costs weighed on the bottom line.
Dividend Announcement and Share Transfer Book Closure
The Board of Directors declared a third interim cash dividend of Rs1.50 per share for 2026. The company’s share transfer book will remain closed from November 4 to November 8, 2026.
Share transfers received by the company’s share registrar, CDC Share Registrar Services Limited, by the close of business on November 3, 2026, will be considered for entitlement to the dividend.
Financial Position Remains Substantial
As of September 30, 2026, EFU Life Assurance reported total assets of Rs303.08 billion, compared with Rs298.01 billion at December 31, 2025.
Total equity increased to Rs10.35 billion from Rs10.12 billion at the end of 2025. Insurance liabilities stood at Rs282.73 billion, reflecting the substantial scale of the company’s insurance obligations.
The company also reported a net cash outflow of approximately Rs3.37 billion from all activities during the nine-month period, compared with a net cash inflow of Rs2.90 billion in the corresponding period last year.
Outlook
EFU Life Assurance’s latest results highlight growth in premium revenue alongside pressure on profitability. While the company’s expanding premium base indicates continued business activity, lower investment income and rising insurance-related costs affected earnings during the period.
Investors will likely monitor future premium growth, investment performance, expense management and the company’s ability to sustain dividend payments as the financial year progresses.
The company’s quarterly report for the nine months ended September 30, 2026, is expected to be transmitted through the PSX’s Pakistan Unified Corporate Action Reporting System (PUCARs) within 30 days of the close of the third quarter.
