IGI Holdings Limited (IGIHL) reported consolidated net profit of PKR 507 million (EPS: PKR 3.47) in 1QCY25, up 12% from PKR 452 million (EPS: PKR 3.12) in the same period last year. In CY24, the company received dividend income of PKR 1.63 billion, reflecting a 2.6% YoY increase. Profit before tax stood at PKR 1.33 billion versus PKR 1.25 billion in the SPLY, while profit after tax rose slightly to PKR 1.35 billion from PKR 1.32 billion.
EPS increased to PKR 9.48 compared to PKR 9.24 last year. The company maintained a stable dividend per share of PKR 65 and a payout ratio of 65% in CY24. Total assets were PKR 16.13 billion, with liabilities dropping significantly to PKR 314 million from PKR 888 million in the SPLY, as the company paid off all short- term and long-term loans. IGI Insurance Company posted Gross Written Premium of PKR 16 billion in CY24, up 12% YoY. The portfolio mix included 39% fire, 20% motor, 16% health, 10% marine, and 15% miscellaneous.
Investment income doubled to PKR 1.02 billion from PKR 630 million, while profit after tax rose to PKR 1.12 billion from PKR 674 million last year. IGI Investments reported a steep drop in net profit to PKR 104 million in CY24, down from PKR 2.79 billion in the SPLY, mainly due to lower dividend income from Nestlé amid increased working capital requirements. Dividend income fell to PKR 1.70 billion, and investments declined to PKR 53.87 billion. The company holds no fixed income instruments, relying solely on strategic investments.
Acquisitions are typically financed through overdrafts due to limited available cash. IGI Life Insurance Limited recorded a GWP of PKR 13.49 billion in CY24, with Banca channel contributing 63%, corporate 24%, and agency 13%. Net profit surged to PKR 278.90 million, 95% YoY up from PKR 142.70 million in the SPLY. IGI Finex Securities Limited saw a 75% YoY increase in average daily volumes and a 6% rise in revenue to PKR 663 million due to increase in market share. However, net profit declined by 25% YoY to PKR 230 million, primarily due to a 33% drop in financial income amid falling interest rates.
On a consolidated basis, IGIHL’s revenue increased 44% YoY to PKR 25.17 billion in CY24 from PKR 17.49 billion in the SPLY. However, profit after tax dropped to PKR 744 million (EPS: PKR 4.88) from PKR 3.91 billion (EPS: PKR 27.25) in the SPLY, mainly due to lower dividend income from subsidiaries and IFRS-9 accounting adjustments. In CY24, IGIHL entered into a share purchase agreement with Stora Enso AB to acquire a 6.04% stake in Packages Limited.
However, the company withdrew its acquisition bid for a 40.63% stake in Mitchell’s Fruit Farms Limited in CY25. Management indicated that several acquisitions are in the pipeline, including those involving listed companies and expects improved dividend income from subsidiaries in CY25.
Important Disclosures
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