TPLI reported a net profit of PKR 71.73 million (EPS: PKR 0.11) in CY24, significantly down from PKR 1.13 billion (EPS: PKR 5.62) in CY23. Management noted that a 0.3% increase in insurance penetration could add USD 1 billion to the market. However, customer outreach remains a key challenge, as distribution requires proactive engagement.
The total addressable insurance market in urban Pakistan stands at PKR 2,160 billion, with PKR 980 billion attributed to target cities within the serviceable obtainable market. To tap this potential, the company is focused on product innovation such as Titania, expanding distribution via banks and dealerships, and deploying AI-based technologies. GWP composition includes Motor – Fresh (35%), Motor – Renewal (29%), Property (17%), Health (11%), Marine (3%), Miscellaneous (4%), and Agri/Livestock (1%) as of December 31, 2025. The company continues to prioritize consumer retail over corporate business. Geographically, premium contributions are led by Karachi (58%), Lahore (16.6%), and Islamabad (16.2%). In CY24, the company achieved motor claim savings of PKR 369.97 million, commercial line savings of PKR 18 million, and health claim savings of PKR 34.55 million. In CY24, treaty reinsurance coverage stood at 95%, exceeding SECP’s 80% requirement, with “A”-rated reinsurers. Saudi Re (rated A by S&P) joined the panel in 2025. Conventional treaty terms remained unchanged: Fire (PKR 2.4 billion), Engineering (PKR 1 billion), Marine (PKR 0.9 billion), Miscellaneous (PKR 50 million). The Takaful treaty saw a 1% increase in commission and expanded limits: Fire (PKR 1.4 billion), Engineering (PKR 0.8 billion),
Marine (PKR 0.8 billion), Miscellaneous (PKR 100 million). In CY24, GWP grew by PKR 937 million (23% YoY), led by Motor (PKR 481m, +15%), Health (PKR 44 million), and Marine (PKR 90 million, +116%). NEP rose to PKR 3,422 million, up 11% YoY. The overall claim ratio improved by 1ppt to 48%, with Motor at 43% and Health at 85%. Operating expenses declined by 4% of NEP. Profit before tax stood at PKR 145 million, compared to PKR 1,172 million in CY23, which included a one-off merger gain of PKR 1,079 million.
PTF turned around from a deficit of PKR 42.58 million in CY23 to a surplus of PKR 7.73 million in CY24, driven by improved underwriting and investment income.
The surplus margin to net contribution rose from 3% to 7%. Overall solvency decreased to PKR 782.66 million but remained above regulatory requirements. PTF solvency slightly declined to PKR 49.78 million from PKR 58.61 million, maintaining a compliant capital buffer.
Going forward, TPLI plans to expand into Tier II and III cities to increase market reach. The company aims to enhance claim management efficiency through AI and digital tools. Management has set a growth target of 30–35% for CY25, with a continued focus on digital transformation.
Important Disclosures
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