Karachi: Reliance Insurance Company Limited presented its un-audited half-yearly accounts for the period ending June 30, 2026, revealing a 15.69% increase in gross premiums. The company underwrote gross premiums amounting to Rs.671.09 million, which includes Takaful contributions of Rs.115.99 million, compared to Rs.580.087 million and Takaful contributions of Rs.89.435 million in the corresponding period of the previous year.
Net claims incurred rose to Rs.67.921 million from Rs.57.252 million in the same period last year. The company's underwriting profit saw an increase, reaching Rs.79.095 million, an improvement from the Rs.63.206 million recorded in the previous year.
According to information available from the Pakistan Stock Exchange (PSX), the company experienced a significant decline in total investment income, which fell by 37.77% to Rs.109.16 million from Rs.175.427 million in the previous year. This decrease was largely due to a reduction in unrealized gains, which dropped to Rs.56.335 million from Rs.92.908 million in the second quarter of 2025. The benchmark returns on the PSX also fell from 9.12% in the prior period to 3.59% in the current period.
Dividend income decreased by Rs.12.449 million to Rs.36.119 million, while realized gains increased slightly to Rs.27.086 million from Rs.25.340 million in the previous year. Return on debt securities and bank deposits showed a minor improvement, rising to Rs.9.438 million from Rs.8.707 million, aligned with the increase in the discount rate.
The company's profit before tax dropped to Rs.142.812 million, compared to Rs.206.352 million for the same period last year. Earnings per share improved to Rs.1.50 from Rs.1.14, restated for the corresponding period of the previous year. Additionally, the profit before tax from Window Takaful Operators Funds was reported at Rs.14.857 million, with an accumulated surplus from the participant Takaful Fund standing at Rs.104.235 million for the period under review.
Looking ahead, the company noted that Pakistan's economic environment showed signs of improvement compared to 2025, with macroeconomic stability strengthening as growth recovered to around 3.7% in FY2026. Despite these positive developments, challenges such as high public and external debt, elevated energy costs, structural weaknesses, climate-related risks, and political uncertainty continue to pose risks to investment and sustainable growth.
The management of Reliance Insurance expressed its commitment to navigating the evolving environment, focusing on core business strengthening, enhancing investment portfolios, improving operational efficiency, and managing risks prudently. With a dedicated team and strategic initiatives, the company aims to deliver sustainable growth and build on its strong foundation.