Karachi: Pakistan General Insurance Company Limited reported a net loss of PKR 11.73 billion for the nine-month period ending September 30, 2024, citing increased management expenses and reduced underwriting results. The company's financial performance reflected higher expenses and operating losses compared to the same period last year.

The company’s net insurance premium for the nine-month period amounted to PKR 306.60 million, with insurance claims and acquisition expenses recorded at PKR 46.63 million. Management expenses during the period rose to PKR 9.42 billion from PKR 9.10 billion in the corresponding period of 2023, contributing to an underwriting loss of PKR 9.16 billion, compared to a loss of PKR 9.10 billion in the same period last year.

Investment income, a critical component of the company’s financial portfolio, increased to PKR 4.54 billion, compared to PKR 2.58 billion during the same period last year. Rental income also grew to PKR 1.88 billion from PKR 1.50 billion in the prior year, while other income reached PKR 741.07 million, up from PKR 114.11 million.

Despite these gains, the company recorded other expenses amounting to PKR 9.06 billion, an increase from PKR 5.53 billion last year. This led to an operating loss of PKR 11.06 billion, compared to PKR 10.44 billion during the same period in 2023. Finance costs also rose to PKR 104.40 million from PKR 20.32 million in the previous year, further impacting the overall financial performance.

The company’s loss before taxation amounted to PKR 11.16 billion, up from PKR 10.46 billion in the corresponding period last year. After accounting for income tax expenses of PKR 567.69 million, the loss after taxation stood at PKR 11.73 billion, compared to PKR 10.81 billion in the same period of 2023.

The basic loss per share was recorded at PKR 0.23, remaining consistent with the same period last year. The diluted loss per share, however, increased slightly to PKR 0.24.

The company also reported an unrealized gain on available-for-sale investments of PKR 21.18 million during the period, improving from a loss of PKR 564.80 million in the previous year. As a result, the total comprehensive loss for the nine-month period amounted to PKR 11.71 billion, compared to PKR 11.37 billion during the same period last year.

According to information available from the Pakistan Stock Exchange (PSX), the company’s financial outlook reflects significant challenges due to high management expenses and operational losses. Despite increased investment and rental income, the rising costs continue to impact the company’s profitability.