Lahore: The Universal Insurance Company Limited has unveiled a significant right issue aimed at fortifying its capital reserves, with the final offer document released on November 11, 2026. The offering, consisting of 50 million right shares at a par value of PKR 10 per share, is set to raise an aggregate of 500 million PKR.

The board of directors approved the right issue on October 22, 2026, with key attendees including Lt. Gen. (Retd.) Ali Kuli Khan Khattak, who serves as chairman, alongside CEO Dr. Shahin Kuli Khan Khattak, and other notable directors. This strategic move seeks to meet the Securities and Exchange Commission of Pakistan's (SECP) minimum capital requirement for non-life insurers as per the Insurance Rules, 2017.

According to information available from the Pakistan Stock Exchange (PSX), the right issue offers 100 new shares for every 100 shares held, effectively doubling the company's existing paid-up capital. The subscription period for this offering spans from November 20 to December 11, 2026, with trading dates for the letter of rights scheduled between November 20 and December 4, 2026.

The primary objective of this initiative is to enhance the company's financial stability and operational efficiency. By increasing its capital reserves, The Universal Insurance Company aims to secure more favorable reinsurance terms, bolster its underwriting capacity, and improve solvency metrics. Additionally, the proceeds are expected to support ongoing business activities and may be invested to generate higher returns, contributing to the company's growth and profitability.

With no minimum level of subscription required, the right issue is fully underwritten, ensuring its success and alignment with regulatory standards. This capital infusion is poised to position The Universal Insurance Company for sustainable development and improved resilience in the insurance market.