Asia Insurance Company Limited delivered a stronger financial performance during the first half of 2026, with higher insurance premiums, improved underwriting results and a significant turnaround in its Window Takaful operations.
According to the company’s unaudited interim financial statements for the six months ended June 30, 2026, profit after tax and tax levies rose to Rs82.72 million, compared with Rs69.71 million in the same period last year. This represents an increase of approximately 19% year on year. Earnings per share also improved to Rs1.13 from Rs0.95.
Insurance business shows substantial improvement
One of the most notable developments was the improvement in the company’s core underwriting performance. Net insurance premium increased to Rs683.41 million during the six-month period, up from Rs489.19 million a year earlier.
At the same time, the company’s underwriting result jumped to Rs71.65 million, compared with Rs23.66 million in the corresponding period of 2025. The improvement came despite higher insurance claims and acquisition expenses, which reached Rs374.05 million during the period. Management expenses also increased to Rs237.71 million from Rs198.21 million.
The stronger underwriting performance helped lift results from operating activities to Rs91.22 million, compared with Rs81.26 million in the first half of 2025. Investment income, however, was lower on a six-month comparison, standing at Rs20.22 million versus Rs57.01 million previously.
Balance sheet expands
Asia Insurance’s financial position also expanded during the period. Total assets stood at Rs4.21 billion as of June 30, 2026, compared with Rs3.49 billion at the end of December 2025.
Investments increased to approximately Rs930.67 million, from Rs783.50 million at year-end 2025. Equity securities stood at Rs468.32 million, while debt securities amounted to Rs122.35 million and term deposits reached Rs340 million.
The company’s insurance and reinsurance receivables also increased to Rs1.22 billion, while reinsurance recoveries against outstanding claims rose to Rs585.51 million.
Shareholders’ equity increased from Rs1.22 billion to Rs1.30 billion, supported by the period’s profit, while unappropriated profit rose from Rs413.03 million to Rs495.75 million.
Cash flow turns positive from operations
The company also recorded a meaningful improvement in operating cash generation. Net cash flow from underwriting activities was Rs152.53 million in the first half of 2026, compared with an outflow of Rs46.43 million during the same period of 2025.
Total cash flow from operating activities reached Rs137.66 million, reversing the Rs73.26 million operating cash outflow reported a year earlier. After investment and financing activities, the company recorded a net cash outflow of Rs40.96 million, leaving cash and cash equivalents at Rs36.75 million at June 30, 2026.
Takaful operations make a notable turnaround
The company’s Window Takaful business also delivered a significant improvement, particularly within the Participants’ Takaful Fund (PTF).
For the first six months of 2026, the PTF generated a surplus of Rs36.01 million, compared with a deficit of Rs18.88 million in the same period of 2025. Net contributions revenue increased to Rs60.29 million from Rs28.08 million, while net underwriting income reached Rs64.66 million.
The Operator’s Fund also remained profitable, recording Rs20.14 million in profit during the period, compared with Rs15.54 million a year earlier. Its operating result increased to Rs20.98 million from Rs12.86 million.
The improvement in the PTF was reflected in its accumulated surplus, which moved from a deficit of Rs5.65 million at the beginning of 2026 to a surplus of Rs30.35 million by June 30, 2026. The Operator’s Fund accumulated surplus also increased to Rs199.72 million.
A stronger first half
Overall, Asia Insurance’s first-half results point to a year of improving operating performance. The company benefited from stronger premium generation, a substantial improvement in underwriting results, better operating cash flows and a major turnaround in its Participants’ Takaful Fund.
While investment income was lower than in the comparable period, the growth in the core insurance business and improved Takaful performance provided important support to profitability.
With total assets exceeding Rs4.2 billion and shareholders’ equity approaching Rs1.3 billion by the end of June, Asia Insurance enters the second half of 2026 from a stronger financial position.
