In CY24, CENI reported a net profit of PKR 584.67 million (EPS: PKR 10.57), up 18% from PKR 496.87 million (EPS: PKR 8.98) in CY23. Gross Written Premium rose 23% YoY to PKR 2.73 billion, outpacing industry growth of 18%. Net claims increased 23% YoY to PKR 760.64 million, with the net claims ratio rising to 60% from 54% in the SPLY. Income from insurance operations declined 10% YoY to PKR 238.77 million.
Investment income rose 24% YoY to PKR 703.14 million, supported by improved stock market performance and higher interest rates. Management expects a decline in investment income in CY25 due to falling interest rates but plans to increase the size of the investment portfolio to mitigate the impact.
The current investment mix comprises 35% equity and 65% fixed income, with a gradual shift towards equities planned as long-term PIBs mature. GWP composition was: Fire & Property 26%, Marine 22%, Motor 24%, Health 24%, and Miscellaneous 4%. Market share increased to 1.25%. A cash dividend of PKR 6 per share was paid in CY24, supported by higher investment and other income. Going forward, management plans to expand the branch network, focus on quality business, increase the Takaful portfolio, and maintain a balanced allocation between equity and fixed income to ensure consistent returns.
Important Disclosures
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