Karachi: Asia Insurance Company Limited has released its financial statements for the year ending December 31, 2024, revealing a robust increase in profitability and a substantial growth in assets. The company reported a profit after tax of 168.39 million rupees, an increase from 85.70 million rupees reported in the previous year, as per the financial statement submitted to the Pakistan Stock Exchange (PSX).
The company’s total assets saw an upward trajectory, standing at 2.39 billion rupees compared to 2.10 billion rupees in 2023. This increase is attributed to a significant rise in investments, which amounted to 730.91 million rupees, up from 320.48 million rupees in the prior year. Notably, the equity securities segment alone contributed 240.29 million rupees, marking a substantial increase from the previous year's 85.43 million rupees.
Asia Insurance's underwriting results also saw an improvement, with net insurance premiums reaching 990.88 million rupees, compared to 827.15 million rupees in the previous financial year. Despite a rise in insurance claims and acquisition expenses, which totaled 606.02 million rupees, the underwriting results improved to 15.95 million rupees from 7.27 million rupees in 2023.
According to information available from the Pakistan Stock Exchange (PSX), the company's investment income surged to 151.57 million rupees from 53.80 million rupees, playing a vital role in boosting overall profitability. This was complemented by other income of 61.77 million rupees, although it represented a decrease from the previous year’s 82.03 million rupees.
The company's management expenses rose to 368.90 million rupees from 341.61 million rupees in 2023, reflecting an increase in operational costs. Despite the rise in expenses and finance costs, which stood at 12.98 million rupees, the results of operating activities improved significantly, contributing 220.65 million rupees to the financial outcome, up from 136.79 million rupees in the previous year.
The Asia Insurance Company’s total liabilities increased to 1.30 billion rupees from 1.16 billion rupees, with a noticeable rise in outstanding claims and unearned premium reserves. The company's equity and liabilities balance, bolstered by a steady increase in capital reserves and unappropriated profits, ultimately matched the growth in the asset base.
In financing activities, the company recorded a cash outflow of 91.93 million rupees, which included dividend payments of 36.50 million rupees. Cash and cash equivalents at year-end were reported at 61.56 million rupees, a decrease from 399.94 million rupees at the beginning of the year, reflecting a net cash outflow from all activities.
Overall, Asia Insurance Company Limited's financial performance in 2024 exemplifies solid operational execution and strategic investment decisions within the market category of insurance, reinforcing its position in the financial sector.