Karachi: The Board of Directors of Pakistan Reinsurance Company Limited announced a 20% cash dividend, equating to PKR 2 per share, for the financial year ended December 31, 2024. The declaration was made during a board meeting held on April 5, 2025, at the company's head office. The announcement indicated no bonus shares or right shares would be issued, and there were no other entitlements or corporate actions reported. However, the company's external auditor issued a qualified report for both conventional and Window Re-takaful Accounts, which were enclosed with the financial results.
According to the financial data, the company reported a net insurance premium of 10.85 billion rupees for 2024, a notable increase from the 9.32 billion rupees recorded in 2023. The net insurance claims for the year amounted to 5.44 billion rupees, compared to 4.71 billion rupees in the previous year. Management expenses also rose, reaching 2.02 billion rupees compared to 1.57 billion rupees in 2023. The company's underwriting results showed a profit of 2.44 billion rupees, up from the previous year's 1.89 billion rupees.
The investment income for the year stood at 3.44 billion rupees, reflecting a substantial increase from 2.39 billion rupees in 2023. Other income, however, fell significantly to 586.83 million rupees from 1.20 billion rupees in the previous year. Overall, the results of operating activities generated a profit of 6.65 billion rupees, compared to 5.10 billion rupees in 2023.
The company recorded a profit from Window Retakaful Operations amounting to 174.79 million rupees, an increase from 142.49 million rupees in the previous year. The profit before income tax was reported at 6.79 billion rupees, up from 5.24 billion rupees in 2023. After accounting for income tax expenses of 3.02 billion rupees, the profit for the year was 3.78 billion rupees, compared to 3.07 billion rupees in the previous year.
Earnings per share after tax increased to 4.20 rupees from 3.41 rupees in 2023. The company's financial results were communicated through the Pakistan Unified Corporate Action Repository System (PUCARS) and are available on the company's website.
In terms of cash flows, the company generated 3.01 billion rupees from underwriting activities, although this was lower than the 3.84 billion rupees generated in 2023. Other operating activities resulted in a net cash outflow of 2.77 billion rupees, compared to a 1.32 billion rupees outflow in the previous year. The total cash flow from all operating activities was 241.07 million rupees, a drop from the previous year's 2.52 billion rupees.
Investment activities contributed a positive cash flow of 738.31 million rupees, recovering from a cash outflow of 1.72 billion rupees in 2023. Financing activities, primarily due to dividend payments, led to a cash outflow of 903.61 million rupees, compared to 672.37 million rupees in the previous year.
The company's cash and cash equivalents at the end of 2024 were 3.24 billion rupees, up from 3.16 billion rupees at the beginning of the year.
According to information available from the Pakistan Stock Exchange (PSX), Pakistan Reinsurance Company Limited operates within the financial services sector, focusing on reinsurance services across various segments. The company's financial performance and dividend declaration provide significant insights into its operational strategy and fiscal health, amidst a qualified audit report.