⏸️ HICL: HOLD Signal (6/10) – HICL – Transmission of Quarterly Financial Statements for the Nine Months Ended September 30 2025

📌 Key Takeaways

• ✅ Profit after tax increased by 25% to Rs. 158.34 million compared to Rs. 126.68 million in the same period last year.
• 📈 Written gross premium grew by 3.4% to Rs. 2.99 billion from Rs. 2.89 billion.
• ⬆️ Net premium revenue increased to Rs. 1.51 billion from Rs. 1.30 billion.
• 📉 Underwriting loss decreased significantly to Rs. 47.47 million from Rs. 135.62 million.
• 💰 Investment & Other Income increased to Rs. 325.00 million from Rs. 296.37 million.
• 💲 Earnings per share (EPS) rose to Rs. 1.28 from Rs. 1.02.
• 🏢 Total assets increased to Rs. 7.399 billion from Rs. 6.485 billion
• 🏛️ Equity increased to Rs. 2.468 billion from Rs. 2.055 billion.
• 📉The company experienced an overdrawn cash balance and has running finance facility from a Bank of Rs. 200 million
• ✅ The increase in net insurance premium shows a positive momentum for future growth
• ✅The company’s focus on managing expenses may continue to yield better results in the future

🎯 Investment Thesis

Based on the improved but still challenged financial results for the nine months ended September 30, 2025, a HOLD recommendation is appropriate for HICL. While the increase in profit after tax, premium growth, and investment income are positive, the continuing underwriting loss raises concerns about long-term sustainable profitability. Given the lack of detailed comparables, a specific price target is not determined. More clarity is needed on the future profitability and efficiency in underwriting operations. Investors may wish to re-evaluate as more information becomes available.