Karachi: Premier Insurance Limited announced a decrease in profits for the nine months ending September 30, 2024, as disclosed in its unaudited financial statements. During a board meeting on October 25, 2024, held at the company’s registered office in Karachi, the directors decided against declaring any cash dividends, bonus shares, or right shares.

For the nine-month period ending September 30, 2024, Premier Insurance reported a net insurance premium of 211.95 million rupees, a decrease from 235.17 million rupees in the same period last year. The net insurance claims stood at 112.88 million rupees, slightly down from 122.53 million rupees in the previous year. The company recorded an underwriting result of 133.87 million rupees, a significant improvement compared to the previous year's figure of 31.53 million rupees.

Despite a rise in underwriting income, the company faced challenges with its management expenses, which surged to 102.55 million rupees from 58.81 million rupees the previous year. The investment income also saw a notable increase, reaching 3.27 million rupees compared to 3.67 million rupees in the same period last year.

Premier Insurance's profit before taxation from conventional insurance operations was recorded at 44.37 million rupees, a considerable turnaround from a loss of 21.63 million rupees reported in the corresponding period of 2023. However, the company's profits were dampened by a minimum tax differential of 7.11 million rupees, resulting in a profit after taxation of 20.38 million rupees, compared to a loss of 38.71 million rupees last year.

According to information available from the Pakistan Stock Exchange (PSX), the company's Window Takaful Operations also showed mixed results. The Participant's Takaful Fund reported a surplus of 10.84 million rupees, a significant improvement from a deficit of 4.55 million rupees in the previous year. Meanwhile, the Operator's Fund, after accounting for Modarib's share of PTF investment income and other expenses, reported a loss of 16.88 million rupees, deepening from a loss of 9.81 million rupees in the same period last year.

Premier Insurance's earnings per share for the nine-month period stood at 0.42 rupees, a recovery from a loss of 0.60 rupees per share in the previous year.

The financial results, which are set to be transmitted through PUCARS separately, reflect the ongoing challenges within the insurance industry and the company's efforts to navigate a volatile market environment.