⚡ Flash Summary

Pakistan Reinsurance Company Limited (PAKRI) reported its financial results for the quarter ended September 30, 2025. The company’s net insurance premium decreased by 13.2% compared to the same period last year. Underwriting results experienced a significant downturn, dropping by 97.9%. Despite these challenges, investment income remained relatively stable, decreasing slightly by 1.5%. Overall, the company’s profit after tax decreased by 31% year-over-year.

📌 Key Takeaways

• 📉 Net insurance premium decreased by 13.2% to PKR 6.998 billion from PKR 8.060 billion.
• 📉 Underwriting results plummeted by 97.9%, resulting in a profit of only PKR 35.659 million versus PKR 1.732 billion.
• 💼 Management expenses decreased by 9.4% to PKR 1.318 billion from PKR 1.455 billion.
• 💰 Investment income saw a slight decrease of 1.5% to PKR 2.483 billion from PKR 2.520 billion.
• 📈 Rental income increased by 11.9% to PKR 123.500 million from PKR 110.383 million.
• 📉 Profit before tax decreased by 40% to PKR 2.864 billion from PKR 4.795 billion.
• 📉 Profit from Window Retakaful Operations decreased by 57% to PKR 57.893 million from PKR 134.867 million.
• 🧾 Income tax expense decreased by 26.7% to PKR 1.034 billion from PKR 2.155 billion.
• 📉 Profit after tax decreased by 31% to PKR 1.831 billion from PKR 2.639 billion.
• 📉 Earnings per share decreased to PKR 2.03 from PKR 2.93.
• ❌ No cash dividend, bonus shares, or right shares were declared.
• ⚠️ Reinsurance recoveries against outstanding claims decreased from PKR 15.767 billion to PKR 9.536 billion as of September 30, 2025.
• ⚠️ Cash and bank balances have significantly dropped from PKR 3.236 billion to PKR 1.158 billion.

🎯 Investment Thesis

Given the company’s declining financial performance, operational challenges, and increased risks, a SELL recommendation is warranted. The significant decrease in underwriting results and profit after tax indicates fundamental weaknesses in the company’s operations. While the stock might offer some speculative upside in the future, the current risk-reward profile is unfavorable. Investors should seek alternative investment opportunities with stronger growth prospects and lower risk profiles.