Lahore: The United Insurance Company has announced its financial results for the year ended December 31, 2024, revealing a notable increase in profit and the issuance of bonus shares. In a meeting held on March 26, 2025, at the company's head office in Lahore, the Board of Directors approved a series of financial measures, including the capitalization of Rs. 693.50 million for the issuance of bonus shares, based on 20 shares for every 100 shares.
According to the financial statements, the company reported a profit of Rs. 2.03 billion for the year, an increase from Rs. 1.01 billion in 2023. This growth was driven by an increase in net insurance premiums, which rose to Rs. 5.14 billion from Rs. 3.63 billion the previous year. The company's underwriting results also improved significantly, reaching Rs. 2.13 billion compared to Rs. 1.09 billion in 2023.
Additionally, the company's investment income saw a considerable rise, amounting to Rs. 474.12 million, up from Rs. 134.80 million in the previous year. Rental income and other income were reported at Rs. 2.52 million and Rs. 135.50 million, respectively, while other expenses were slightly lower at Rs. 11.64 million.
The Board of Directors has recommended a capitalization of Rs. 693.50 million for the issuance of bonus shares at a rate of 20%. No cash dividend or right shares have been declared for the year, and there is no other price-sensitive information to report.
According to information available from the Pakistan Stock Exchange (PSX), the company's profit before income tax expense was Rs. 2.79 billion, compared to Rs. 1.37 billion in the prior year. After accounting for an income tax expense of Rs. 765.56 million, the net profit for the year stood at Rs. 2.03 billion.
The company's earnings per share increased to Rs. 6.07 from Rs. 3.01 in 2023. The Annual General Meeting is scheduled for April 25, 2025, at the PSX Auditorium in Karachi, where shareholders will discuss these results.
The share transfer books will remain closed from April 18 to April 25, 2025. Transfers received by the close of business on April 17, 2025, will be considered timely for entitlements and participation in the meeting.
The company's free reserves before the issuance of bonus shares were calculated at Rs. 1.79 billion. After the proposed bonus issue, free reserves are expected to stand at Rs. 1.10 billion, with the balance reserve calculated at Rs. 476.46 million.
The United Insurance Company's latest financial results indicate strong performance and strategic growth, supported by increased underwriting and investment income. These developments are expected to be discussed in further detail during the upcoming Annual General Meeting.