The Universal Insurance Company Limited (UIC) has reported a profit after taxation of Rs9.24 million for the six months ended June 30, 2026, compared with Rs25.91 million recorded during the same period last year.
According to the company’s condensed interim financial statements, net insurance premium increased significantly to Rs30.48 million, up from Rs12.41 million in the corresponding period of 2025. Despite this growth in premium income, the company’s underwriting performance weakened during the period, resulting in an underwriting loss of Rs19.93 million, compared with a loss of Rs3.10 million a year earlier.
Investment income remained an important contributor to the company’s overall earnings. UIC reported investment income of Rs24.26 million during the six-month period, compared with Rs20.02 million in the same period of 2025. Rental income also edged higher to Rs683,000 from Rs619,000.
The company’s operating results before minimum and final taxation stood at Rs10.80 million, compared with Rs27.59 million in the first six months of 2025. After taxation, profit declined to Rs9.24 million, translating into earnings per share of Rs0.18, against Rs0.52 in the corresponding period last year.
Balance Sheet Remains Relatively Stable
UIC’s total assets stood at Rs903.41 million as of June 30, 2026, slightly below Rs907.98 million recorded at the end of December 2025. Total equity, however, increased to Rs737.57 million from Rs727.19 million.
The company’s unappropriated profit rose to Rs79.20 million, compared with Rs51.65 million at December 31, 2025. The financial position also reflected an increase in the company’s authorised share capital from Rs750 million to Rs1 billion, while issued and paid-up share capital remained at Rs500 million.
Cash Position Comes Under Pressure
The cash flow statement highlights a notable change in UIC’s liquidity position. Cash and cash equivalents declined to Rs12.77 million at June 30, 2026, compared with Rs84.21 million at the end of June 2025.
Net cash outflows from underwriting activities amounted to Rs29.45 million, while total cash outflows from operating activities reached Rs17.70 million. Investing activities, meanwhile, generated net cash inflows of Rs6.55 million during the period.
No Dividend or Bonus Shares Announced
In its notice dated August 27, 2026, the company stated that its Board of Directors had recommended no cash dividend, no bonus shares and no right shares for the period ended June 30, 2026.
Overall, UIC’s first-half results show strong growth in net insurance premiums and investment income, but this was offset by substantially higher underwriting pressure and operating costs. The company’s ability to improve underwriting performance while maintaining its investment income will be important for earnings recovery in the remainder of the year.
