Pakistan Reinsurance Company Limited (PAKRI) reported earnings per share of PKR 4.20 for CY24, compared to PKR 3.41 in CY23. Furthermore, in 3QCY25, the company reported earnings per share of PKR 0.78, compared to earnings per share of PKR 1.07 in the same period last year (SPLY).
PRCL provides reinsurance solutions across multiple segments, including Aviation, Marine, Engineering, Fire, and Accident. The company’s long-term vision is to position itself as the premier provider of reinsurance and risk management services in the region.
The average return on fixed income securities currently stands between 12.5% and 13%. Management noted that these yields are still higher than KIBOR however, returns are expected to soften as short-term investments booked at elevated rates last year mature and are reinvested at lower prevailing yields. Local retention typically averages 35–40% but can rise to 40–43% in certain periods.
However, in quarters that include high value public sector accounts (e.g., PIA bookings), retention levels can decline considerably due to the size of these exposures. Management expects steady business growth over the next three to five years, driven by increased activity in public sector projects and mining related projects. PRCL confirmed that it remains on the active privatisation list, though no specific timeline can be given.
Regarding taxation, management highlighted that the 2012 law taxed both insurance and reinsurance activities. The company received SRB notices in 2017 and subsequently paid PKR 2.5 billion. PRCL clarified that reinsurance is not a separate taxable business and has challenged the notice in the Sindh High Court. SRB has tentatively agreed to waive prior liabilities and allow adjustment of the PKR 2.5 billion already paid, conditional on PRCL commencing sales tax invoicing going forward. Discussions remain ongoing, regarding legal hurdles related to this potential settlement
Important Disclosures
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