Adamjee Life Assurance Company Limited (ALIFE) reported earnings per share of PKR 6.22 for CY24, compared to PKR 3.63 in CY23. Furthermore, in 1QCY25, the company reported EPS of PKR 0.49, compared to PKR 1.22 in the same period last year (SPLY). The company’s primary revenue driver remains Bancassurance, which currently holds a market share of approximately 22%. Other significant contributors to revenue include Direct Distribution, Insurtech, Micro tech insurance, and the Group Life segment. As of the latest reporting period, the company’s total investments amount to PKR 105.75 billion.
A substantial portion of this—PKR 49 billion—is allocated to Pakistan Investment Bonds (PIBs) and Ijarah Sukuks, while PKR 34 billion is invested in Treasury Bills (TBills). Going forward in CY25, the company anticipates facing certain challenges, primarily due to the declining interest rate environment, which may make it difficult to sustain the high investment returns witnessed in recent years.
Another challenge involves the sales tax matter on insurance and reinsurance, which remains sub judice. However, based on the legal advisor’s opinion, the company is optimistic about a favorable court ruling. The company is currently collaborating with an international consultant to carry out Phase 4 of the IFRS 17 parallel run and its subsequent implementation. This stage includes the finalization of accounting and actuarial frameworks, acquisition and integration of the necessary system, as well as enhancements to the existing infrastructure. For CY25, the company projects Gross Premiums of PKR 30.969 million and an underwriting surplus of PKR 2.559 million. The management has also expressed confidence in expanding its market share in the Group Insurance segment to 10–15%, and is committed to sustaining dividend payouts going forward.
Important Disclosures
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