IGI Life Insurance Sees Drop in Profit Despite Increase in Gross Premium

Karachi, IGI Life Insurance Limited reported a decline in profit after tax for the first quarter of 2024, despite a significant increase in gross premium written. Gross premium for the quarter stood at Rs. 3.248 billion, compared to Rs. 1.778 billion in the same period last year.

According to information available from the Pakistan Stock Exchange (PSX), the company posted a profit after tax of Rs. 31.495 million, down from Rs. 60.710 million in the corresponding period of the previous year. This decline has been attributed to higher acquisition costs and the need to reprice products in the corporate life and health business sectors.

The net premium for the quarter was Rs. 3.150 billion, an increase from Rs. 1.687 billion last year. Net claims, including surrenders, decreased slightly to Rs. 1.059 billion from Rs. 1.154 billion. Investment income, including other income, also saw an increase, rising to Rs. 935 million from Rs. 513 million.

However, the change in insurance liabilities, excluding outstanding claims, rose sharply to Rs. 2.365 billion from Rs. 396 million, impacting the overall profitability. Acquisition costs for the quarter were Rs. 404 million, a slight decrease from Rs. 448 million last year, while administrative expenses increased to Rs. 195 million from Rs. 170 million.

Despite the challenging macroeconomic environment, the management remains committed to improving the company’s performance. Efforts are underway to address higher acquisition costs and reprice products to enhance profitability.

IGI Life Insurance Limited’s earnings per share (EPS) for the quarter stood at Rs. 0.25, compared to Rs. 0.13 in the same period last year.