Adamjee Life Reports Significant Earnings Growth and Strategic Shifts

Karachi: Adamjee Life Assurance Company Ltd (ALIFE) reported a 71% increase in earnings for the calendar year 2024, reaching PkR1.6 billion compared to the previous year’s PkR0.9 billion. This rise was mirrored by a jump in earnings per share from PkR3.63 to PkR6.22.

The company’s gross premium income also rose by 33% to PkR31 billion, driven primarily by bancassurance partnerships with MCB Bank and HMB Bank. Other revenue channels included Direct Distribution, Insurtech and Micro Insurance, and Group Life.

ALIFE’s market share in these segments was 15.3% in Bancassurance, 10.0% in Direct Distribution, and 7.0% in Group Life. The management plans to reduce reliance on single premium products, projecting a decrease to PkR10 billion in 2025, while expecting a 22% rise in regular premium products.

Investment income saw a substantial growth of 48%, totaling PkR26.8 billion. However, the net claims ratio was 80.4%, with commission expenses accounting for 4.7% of net premium. The underwriting margin was 10.0%, with expectations of a decline to 9.7% next year due to falling interest rates.

Investments grew by 35% to PkR106 billion, with a diverse portfolio including PIBs, Ijara Sukuks, T-Bills, equities, mutual funds, and TFCs. Fixed assets rose significantly by 2.9 times to PkR924 million, following the implementation of IFRS-16. This also increased lease liabilities to PkR661 million.

Total assets were reported at PkR116 billion against liabilities of PkR111 billion. The company is in the final phase of implementing IFRS-17, facing challenges due to a shortage of technical resources, with a deadline of January 1, 2026.

The analysis was provided by AKD Securities Limited but not included in their formal coverage.