Karachi: Habib Insurance Company Limited announced its financial results for the quarter ended June 30, 2026, during a board meeting held on August 27, 2026. The company disclosed key financial decisions affecting shareholders, including a notable issuance of bonus shares and pivotal cash flow developments.

In a strategic move, the Board of Directors recommended issuing bonus shares at a rate of 61.45 shares for every 100 shares held, translating to a 61.45% issuance to shareholders. This entitlement will apply to shareholders listed in the Register of Members as of September 07, 2026. However, the board decided against distributing a cash dividend for the period, and no right shares were issued.

Financial statements revealed a stark contrast in cash flows from various activities. The total cash flows from operating activities recorded a decrease, standing at negative Rs. 509.78 million, compared to a positive Rs. 187.70 million in the same period last year. This shift was primarily due to higher claims paid, which amounted to Rs. 1.81 billion, offsetting the insurance premium received of Rs. 894.46 million. Reinsurance recoveries showed a positive impact, bringing in Rs. 1.33 billion.

According to information available from the Pakistan Stock Exchange (PSX), the company's investment activities saw a significant turnaround, with total cash flows from investing activities reaching Rs. 460.82 million, a reversal from a negative Rs. 267.67 million previously. This was driven by proceeds from investments amounting to Rs. 369.54 million, coupled with increased dividends received totaling Rs. 118.57 million.

Conversely, financing activities reflected a slight reduction in cash outflows, reporting negative cash flows of Rs. 85.22 million compared to Rs. 131.71 million in the same quarter the previous year. The company's dividends paid reduced to Rs. 75.17 million, contributing to this change.

Overall, net cash flows from all activities were negative, at Rs. 134.18 million, although this marked an improvement from the previous year's negative Rs. 211.67 million. The cash and cash equivalents at the end of the period were reported as negative Rs. 92,045, contrasting with a positive Rs. 38,927 at the end of the previous period.

The quarterly financial adjustments and decisions, especially the significant bonus share issuance, mark an essential phase for Habib Insurance Company Limited, reflecting its strategic direction and market engagement as recorded in the designated market category.