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Rawalpindi: The Universal Insurance Company Limited has disclosed its financial results for the first half of the year ending June 30, 2024, revealing significant losses.
During the three-month period from April to June 2024, the company reported a net insurance premium of approximately 4.19 billion rupees, which is a significant drop from the 16.32 billion rupees during the same period in 2023. Correspondingly, net insurance claims rose to 1.92 billion rupees, a marked improvement from the previous year’s 11.82 billion rupees, indicating fewer claims.
However, the company’s financials were heavily impacted by a dramatic loss from investments, which amounted to 26.33 billion rupees, as opposed to a minor gain of 2.67 billion rupees in the previous year. This drastic shift contributed significantly to the overall negative financial performance.
According to information available from the Pakistan Stock Exchange (PSX), Universal Insurance’s management expenses and other expenses remained high, totaling 18.98 billion rupees and 2.12 billion rupees respectively. The underwriting results were negative, posting losses of 12.85 billion rupees.
As a result, the company’s loss before taxation escalated to 21.35 billion rupees, with the after-taxation figure slightly mitigated to a loss of 17.51 billion rupees due to deferred taxation benefits. Loss per share after taxation worsened to 0.35 rupees, compared to 0.24 rupees in the previous half-year period.
The Board of Directors, meeting in Rawalpindi, declared no dividends, bonus shares, or rights shares for the period, reflecting the company’s efforts to stabilize its financial footing amidst challenging conditions.
The first half of 2024 paints a troubling financial picture for Universal Insurance, as it navigates significant underwriting losses and unfavorable investment outcomes. The company’s strategy moving forward remains to be seen as it attempts to recover from these substantial financial setbacks.
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