EFU Life Assurance Limited has announced improved financial performance for the six months ended June 30, 2026, while also recommending a cash dividend and a fresh right issue to support the company’s capital position.

According to the company’s condensed interim financial statements, EFU Life recorded a profit after tax of Rs1.289 billion during the first half of 2026, compared with Rs1.217 billion in the same period last year. This represents an increase of around 6% year-on-year. Earnings per share also improved to Rs12.28, from Rs11.59 a year earlier.

The company’s total comprehensive income stood at Rs1.314 billion for the six-month period, compared with Rs1.209 billion in the corresponding period of 2025. The improvement was supported by higher net income, although investment-related fair value movements remained a factor affecting the overall results.

15% Interim Cash Dividend

Alongside its financial results, EFU Life’s Board of Directors recommended an interim cash dividend of Rs1.50 per share, equivalent to 15%, for the quarter ended June 30, 2026.

The company stated that the dividend would be paid to shareholders whose names appear in the register of members as of August 31, 2026. The share transfer books will remain closed from September 1 to September 8, 2026, with transfers received by the company’s share registrar by the close of business on August 31 being considered for the entitlement.

Right Issue Proposed

In another significant corporate action, EFU Life’s Board recommended the issuance of approximately 42.857% right shares at Rs10 per share.

Under the proposal, shareholders would be offered approximately 42.857 right shares for every 100 shares held. The company said the dates for closure of the share transfer books for determining entitlement to the right issue would be communicated after finalization of the right-share offer documents in accordance with applicable regulations.

Assets and Insurance Liabilities Expand

EFU Life’s financial position also remained sizeable at the end of June. The company reported total assets of approximately Rs303.98 billion, compared with Rs298.01 billion at December 31, 2025.

Insurance liabilities stood at approximately Rs283.72 billion, up from Rs277.70 billion at the end of 2025. Total equity increased to around Rs10.17 billion, compared with Rs10.12 billion at the previous year-end.

Investment Income Supports Results

The six-month financial statements show that EFU Life generated net investment income of about Rs12.33 billion, compared with Rs16.86 billion during the same period of 2025. Net unrealised fair-value movements and other investment-related items also influenced the reported results.

At the operating level, the company reported profit before tax of approximately Rs1.884 billion, compared with Rs1.963 billion in the first half of 2025. Despite the lower pre-tax figure, the company’s profit after tax increased to Rs1.289 billion from Rs1.217 billion, reflecting the impact of taxation and other components of the interim accounts.

Cash Flow Remains an Important Focus

The cash flow statement shows that EFU Life generated substantial cash from underwriting activities, including premium and contribution receipts. However, payments relating to claims, commissions, marketing and administration, and other underwriting costs resulted in a net cash outflow from underwriting activities during the period.

The company also recorded cash flows from investment activities, while dividend payments and other financing-related outflows affected the overall cash position. Cash and cash equivalents stood at approximately Rs5.72 billion at June 30, 2026, compared with Rs6.06 billion at the same point last year.

Outlook for Shareholders

EFU Life’s latest announcement combines an improvement in first-half profitability with continued shareholder distributions. The Rs1.50 per share interim dividend provides a direct return to investors, while the proposed right issue could strengthen the company’s capital base.

The financial statements are marked unaudited, and the company said its quarterly report for the six-month period ended June 30, 2026 would be transmitted separately through the Pakistan Stock Exchange within the required timeframe.

Overall, EFU Life entered the second half of 2026 with higher profit after tax, a continued dividend payout and a proposed right issue, giving shareholders several important developments to consider as the company moves forward.