United Insurance Reports Steady Profit Growth in First Quarter

The United Insurance Company of Pakistan Limited (UIC) started 2026 on a positive note, posting a modest increase in profitability during the three months ended March 31, 2026.

According to the company’s unaudited financial results, UIC recorded a profit after tax of Rs553.4 million, compared with Rs523.1 million in the same period last year. This represents an increase of around 5.8% year on year.

The improvement came despite some pressure on the company’s insurance and Takaful-related operations, with growth in net insurance premiums and investment income helping support the overall bottom line.

Insurance Premiums Continue to Grow

UIC’s net insurance premium increased to approximately Rs1.259 billion during the quarter, up from Rs1.160 billion a year earlier. The increase of about 8.3% indicates continued growth in the company’s insurance business.

At the same time, net insurance claims stood at Rs156.5 million, slightly higher than Rs150.8 million recorded in the corresponding quarter of 2025. Commission and acquisition costs, meanwhile, declined to Rs54.3 million from Rs56.1 million.

The company reported underwriting results of Rs631.1 million, compared with Rs579.4 million in the same quarter last year, reflecting an improvement of nearly 9%. Management expenses, however, increased to Rs416.8 million from Rs373.4 million.

Investment Income Provides Additional Support

Beyond its core insurance operations, UIC benefited from higher investment income. Investment income rose to Rs44.6 million in the first quarter of 2026 from Rs35.3 million a year earlier.

Rental income remained relatively small at Rs0.8 million, while other income came in at Rs17.2 million. These income streams helped strengthen the company’s results during the quarter.

However, profit from the Window Takaful Operations — Operator’s Fund declined sharply to Rs19.5 million, compared with Rs69.1 million in the same period of 2025. This decline partly offset gains made elsewhere in the business.

Earnings Per Share Improve

UIC’s earnings per share (EPS) increased to Rs1.11 for the quarter, compared with Rs1.05 in the same period last year. The improvement is consistent with the year-on-year rise in profit after tax.

The company did not announce any cash dividend, bonus shares or right shares in connection with the quarter ended March 31, 2026. It also reported no other corporate action or price-sensitive information.

Balance Sheet Remains Strong

UIC’s total assets stood at approximately Rs22.74 billion as of March 31, 2026, compared with Rs21.87 billion at the end of December 2025.

The company’s total equity increased to around Rs7.57 billion, while total liabilities stood at approximately Rs11.77 billion. The financial position also included significant investments and cash resources, reflecting the company’s continued focus on maintaining a solid balance sheet.

Cash Position Improves

Cash generation showed a notable improvement compared with the same period last year. Although UIC reported net cash outflow from operating activities of Rs60.3 million, this was substantially lower than the Rs379.7 million outflow recorded in the first quarter of 2025.

Investment activities generated net cash of Rs45.8 million, while financing activities resulted in an outflow of Rs19.1 million. Overall, cash and cash equivalents stood at approximately Rs793.9 million at March 31, 2026, compared with Rs328.5 million a year earlier.

A Positive Start to 2026

Overall, United Insurance delivered a steady first-quarter performance. Higher net insurance premiums, stronger underwriting results and improved investment income helped lift profit despite higher management expenses and a significant decline in income from Window Takaful Operations.

With profit rising nearly 6% and EPS improving to Rs1.11, the results point to a relatively stable start to the year for UIC. The company’s financial statements also show an improvement in its cash position compared with the first quarter of 2025, providing another encouraging sign for the business.

Source: United Insurance Company of Pakistan Limited’s unaudited financial results for the quarter ended March 31, 2026.