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Karachi: Askari Life has reported a series of financial setbacks in its recent unaudited and audited statements, revealing significant losses and escalating expenses over the past three years. The company, which operates in the insurance sector, has witnessed fluctuating revenues and increasing liabilities, culminating in substantial annual losses.
According to the latest financial highlights, Askari Life’s gross premium and contribution revenue decreased from PKR 1.30 billion in 2022 to PKR 1.07 billion in the audited results of 2023, and further dipped to PKR 0.75 billion as of June 30, 2024, in unaudited figures. This trend indicates a notable decline in the company’s core income streams over the period. Net premium, after accounting for reinsurance ceded, also showed a similar downward trajectory, standing at PKR 0.61 billion by mid-2024 compared to PKR 1.08 billion in 2022.
The financial data, which includes investment and other income, portrays a mixed outcome. While there was an improvement from PKR 0.13 billion in 2022 to PKR 0.30 billion in 2023, the unaudited figures for 2024 show a significant drop to PKR 0.19 billion. Total income for the company followed suit, peaking at PKR 1.55 billion in 2023 before falling to PKR 0.80 billion in 2024.
Total expenses have escalated dramatically, from PKR 1.33 billion in 2022 to PKR 1.43 billion in 2024, highlighting increased operational costs. This, coupled with the declining income, has resulted in growing losses before tax, reaching PKR 0.05 billion in the recent unaudited figures.
Losses for the year further exacerbated the company’s financial distress, recording PKR 0.28 billion in 2022 and worsening to PKR 0.17 billion in 2024. The total comprehensive loss for the year also mirrored this negative trend, escalating from PKR 0.28 billion in 2022 to PKR 0.16 billion in 2024.
According to information available from the Pakistan Stock Exchange (PSX), the losses per share have increased over the years, from PKR 1.84 in 2022 to PKR 0.34 in 2024, suggesting a declining value for shareholders. This financial downturn reflects broader challenges within the insurance sector, including market volatility and increasing claims expenses.
Askari Life’s financial performance over these periods indicates a critical need for strategic reassessment and potential restructuring to mitigate losses and improve financial health. The trends highlighted in these statements provide crucial insights into the operational challenges and market conditions affecting the company.
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