IGI Life Insurance Limited (IGIL) reported a net profit of PKR 278.90 million (EPS: PKR 1.64) in CY24, up from PKR 142.70 million (EPS: PKR 0.84) in CY23.
The improvement in profitability was supported by higher premiums and strategic investments. Net insurance premium rose 70% YoY to PKR 13.09 billion in CY24, compared to PKR 7.69 billion in the same period last year. The gross premium of PKR 13.49 billion was driven by the Banca channel, which contributed 63%, followed by Corporate (24%) and Agency (13%). Growth was primarily led by expansion in the single premium segment. As of December 31, 2024, the company’s investment portfolio stood at PKR 35.02 billion, with PKR 32.45 billion allocated to policyholders’ funds and PKR 2.57 billion to shareholders’ funds. Within the shareholders’ fund, 98% is invested in fixed-income instruments and 12% in mutual funds. In CY24, gross returns by fund category were as follows: 54.5% from KSE-100, 53.4% from KMI-30, 44.1% from Aggressive Fund, 28.2% from Balanced Fund, 20.6% from Conservative Fund, 22.1% from Secure Fund, 37.7% from Aggressive Takaful Fund, 26.6% from Balanced Takaful Fund, and 19.7% from Conservative Takaful Fund.
The change in insurance liabilities was attributed to adjustments in policyholder and group liabilities. Embedded value increased to PKR 4.00 billion in CY24, reflecting the impact of strategic initiatives. In 1QCY25, gross premium rose 22% YoY to PKR 3.96 billion, while net profit grew 64% YoY to PKR 70.01 million. Acquisition expenses, however, increased to PKR 454.43 million during the quarter. Looking ahead, IGIL aims to grow gross premiums by 10–11%, targeting PKR 15 billion for the year. Management remains optimistic about the growth outlook and is focused on controlling acquisition expenses. The company’s investment strategy will remain aligned with the nature of underlying funds, especially in light of the declining interest rate environment.
Important Disclosures
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