Adamjee Insurance Company Limited (AICL) has reported an increase in its profitability for the nine months ended September 30, 2026, with its unconsolidated profit after tax rising to Rs4.63 billion compared with Rs4.16 billion in the corresponding period last year.
According to the financial results submitted to the Pakistan Stock Exchange (PSX), the company’s profit after tax increased by approximately 11.4% year-on-year, while earnings per share (EPS) improved to Rs13.24 from Rs11.88.
The company’s profit before tax reached Rs7.30 billion during the nine-month period, compared with Rs6.71 billion in the same period of 2025. Income tax expense stood at Rs2.67 billion against Rs2.55 billion a year earlier.
Stronger Underwriting Performance Supports Profitability
One of the major highlights of Adamjee Insurance’s financial performance was the improvement in its underwriting results. The company recorded underwriting profit of Rs2.21 billion during the nine months ended September 2026, compared with Rs574.45 million in the corresponding period last year.
Net insurance premium increased to Rs36.96 billion from Rs28.03 billion, reflecting substantial growth in premium income. However, net insurance claims also increased to Rs23.45 billion from Rs18.36 billion.
Net commission and other acquisition costs rose to Rs5.96 billion, while management expenses increased to Rs5.34 billion during the period.
Despite higher claims and operating costs, the significant improvement in underwriting performance contributed positively to the company’s overall earnings.
Investment Income Declines
Adamjee Insurance’s investment income declined to Rs4.45 billion during the nine months ended September 2026, compared with Rs5.39 billion in the corresponding period of the previous year.
The decline in investment income was partly offset by stronger underwriting performance. Rental income increased to Rs179.95 million from Rs160.83 million, while other income stood at Rs236.15 million.
The company’s results indicate that improved insurance operations played an important role in supporting overall profitability despite lower investment income.
Consolidated Earnings Also Improve
On a consolidated basis, Adamjee Insurance reported profit after tax of Rs4.60 billion for the nine-month period, compared with Rs4.48 billion in the same period of 2025.
Consolidated earnings per share increased to Rs12.87 from Rs12.44.
Consolidated net insurance premium increased to Rs58.74 billion from Rs52.61 billion. However, net insurance claims rose to Rs51.80 billion compared with Rs42.19 billion in the corresponding period last year.
The consolidated underwriting result remained negative at Rs5.13 billion, although this represented an improvement from the loss of Rs14.67 billion recorded in the same period of 2025.
Consolidated investment income declined to Rs12.37 billion from Rs16.66 billion. The company also recorded an unrealised fair value loss of Rs1.12 billion on financial assets measured at fair value through profit and loss, compared with an unrealised gain of Rs4.65 billion in the previous year.
Dividend and Financial Position
The company’s board of directors did not announce any additional cash dividend, bonus shares or right shares with the nine-month financial results.
However, the statement of changes in equity shows that the company had already paid an interim dividend of Rs3 per share for the half year ended June 30, 2026, in addition to the final dividend of Rs2 per share for 2025.
Adamjee Insurance’s unconsolidated total assets increased to Rs151.59 billion as of September 30, 2026, compared with Rs134.31 billion at the end of December 2025.
On a consolidated basis, total assets reached Rs278.82 billion, up from Rs264.71 billion at the end of 2025. Consolidated cash and cash equivalents also increased to Rs20.87 billion from Rs12.30 billion.
Outlook
Adamjee Insurance’s nine-month results reflect improved profitability, stronger premium growth and a significant recovery in underwriting performance at the standalone level. Although lower investment income and higher insurance claims remained important challenges, the company managed to increase its overall earnings.
The improvement in standalone underwriting results is a positive development, while the consolidated performance highlights the continuing pressure on claims and investment returns.
Investors will likely keep a close watch on the company’s underwriting performance, investment income and claims experience in the coming quarters to assess whether its earnings growth can be sustained.
