Karachi: Reliance Insurance Company Limited has disclosed its financial results for the year ended December 31, 2024, and announced several strategic decisions following a Board of Directors meeting held on March 27, 2025. The company detailed its performance and outlined future plans in a comprehensive report.
The Board of Directors did not recommend a cash dividend for the fiscal year under review. However, they proposed the issuance of bonus shares in the ratio of 51 shares for every 100 shares held, translating to a 51% bonus issue. The proposal aims to enhance shareholder value by increasing the company’s share capital without immediate cash outflow.
In addition, the Board approved an increase in authorized share capital from Rs.1.00 billion to Rs.1.50 billion. This move is designed to provide the company with greater flexibility in capital management and accommodate future growth prospects.
The financial position of Reliance Insurance Company Limited reflects total assets amounting to Rs.2.95 billion as of December 31, 2024, compared to Rs.2.31 billion at the end of the previous year. The equity attributable to the company’s shareholders increased to Rs.1.57 billion from Rs.1.22 billion in the prior year.
According to information available from the Pakistan Stock Exchange (PSX), the company reported improvements in key asset categories, including equity securities and mutual funds, which rose to Rs.1.20 billion from Rs.839.87 million. Insurance and reinsurance receivables also increased to Rs.642.36 million from Rs.537.19 million.
The liabilities of the company stood at Rs.1.33 billion, up from Rs.1.05 billion in the previous year. This increase is attributed to higher underwriting provisions and deferred taxation, reflecting the company’s growth and tax planning strategies.
The Annual General Meeting (AGM) is scheduled for April 30, 2025, at 12:30 p.m. The meeting will take place at the company’s head office in Karachi and will also be accessible online via video-link. The Share Transfer Books will be closed from April 21, 2025, to April 30, 2025, inclusive of both days, to finalize the list of shareholders eligible for the bonus issue and to participate in the AGM.
The designated market category for Reliance Insurance Company Limited remains under the insurance sector, reflecting its continued focus on providing comprehensive insurance solutions.
The company’s cash flow statement highlights net cash outflows from operating activities, with Rs.123.35 million used during the year. Investment activities generated Rs.181.22 million, driven by proceeds from investments and dividends received, while financing activities recorded a cash outflow of Rs.64.22 million due to dividend payments.
Reliance Insurance Company Limited’s financial performance for 2024 underscores its robust asset management and strategic capital decisions, positioning it for sustained growth in the competitive insurance market.