KARACHI: Adamjee Insurance Company Limited (PSX: AICL) posted a decline in profitability for the first quarter ended March 31, 2026, as higher insurance claims, operating expenses, and tax charges weighed on earnings despite strong growth in premium income. The company’s board also announced that it would not declare any interim cash dividend, bonus shares, or right shares for the period.
According to the financial results, Adamjee Insurance reported an unconsolidated profit after tax of Rs1.31 billion for the quarter, down 17.2% from Rs1.58 billion recorded in the corresponding period last year. Earnings per share (EPS) declined to Rs3.74, compared with Rs4.52 a year earlier. Profit before tax also fell to Rs2.22 billion from Rs2.57 billion.
Despite the decline in earnings, the company achieved robust business growth during the quarter. Net insurance premium increased by nearly 45% to Rs12.00 billion, compared with Rs8.29 billion in the same period of 2025, reflecting stronger underwriting activity. However, net insurance claims surged to Rs7.79 billion from Rs5.29 billion, while commission and acquisition costs also rose significantly, putting pressure on underwriting margins.
The company’s underwriting result improved to Rs443 million, compared with Rs188 million in the previous year’s first quarter. However, investment income declined to Rs1.57 billion from Rs1.95 billion, and other income also dropped sharply, contributing to the lower overall profitability.
Adamjee Insurance’s financial position remained strong, with total assets increasing to Rs136.35 billion as of March 31, 2026, compared with Rs134.31 billion at the end of December 2025. Total equity stood at Rs48.34 billion, while the company continued to maintain a substantial investment portfolio across equity securities, debt instruments, and term deposits.
The board of directors, in its meeting held on April 28, 2026, approved the quarterly financial statements and confirmed that no interim cash dividend, bonus shares, or right shares would be issued for the period.
While Adamjee Insurance demonstrated strong premium growth during the quarter, rising claims, increased operating costs, and softer investment returns offset the benefits, resulting in lower earnings compared with the same period last year. Investors will be watching future quarters to see whether the company’s expanding premium base translates into improved profitability as claims and investment performance stabilize.
