Karachi: Habib Insurance Company Limited has reported a significant increase in its profit for the year ended December 31, 2024, as documented in its latest financial statement. The company's profit after tax reached 236.85 million rupees, a substantial rise from the 112.78 million rupees recorded in 2023.

The firm's net insurance premium slightly decreased to 1,492.36 million rupees from the previous year’s 1,505.71 million rupees. Meanwhile, net insurance claims also saw a reduction, totaling 934.29 million rupees compared to 951.90 million rupees in 2023. Both premium deficiency and net commission and other acquisition costs were reduced, with the latter falling significantly from 32.53 million rupees to 5.65 million rupees.

According to information available from the Pakistan Stock Exchange (PSX), the company's investment income was a major contributor to its improved financial performance, climbing to 459.05 million rupees from 305.20 million rupees in the prior year. This, combined with an increase in other income to 122.21 million rupees, up from 48.12 million rupees, supported the operating activities results, which surged to 341.76 million rupees from 98.95 million rupees.

Despite an increase in management expenses to 774.66 million rupees from 764.80 million rupees, the company’s overall results of operating activities improved substantially. The finance cost marginally decreased to 8.08 million rupees from 9.12 million rupees, contributing to the profit before tax reaching 375.55 million rupees, up from 159.74 million rupees in 2023.

The income tax expense rose to 138.70 million rupees, up from 46.96 million rupees, yet the overall profit after tax showed a remarkable increase. The earnings per share also improved, rising from 0.91 rupees in 2023 to 1.91 rupees in 2024.

The company's other comprehensive income also improved, with an unrealised gain on available-for-sale investments amounting to 714.71 million rupees, more than the 396.10 million rupees noted in the prior year. After accounting for related tax impacts and disposal gains, the total comprehensive income for the year amounted to 629.39 million rupees, compared to 412.57 million rupees in 2023.

Habib Insurance's results underscore the significant impact of investment strategies on financial outcomes, as evidenced by the notable rise in investment income and comprehensive income figures.