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

📌 Key Takeaways

• 📈 Profit after tax increased by 25% to Rs. 158.34 million for the nine months ended September 30, 2025, compared to Rs. 126.68 million in the same period last year.
• 💰 Gross written premium grew by 3.4% to Rs. 2.99 billion from Rs. 2.89 billion.
• 📊 Net premium revenue increased to Rs. 1.51 billion compared to Rs. 1.30 billion.
• 📉 Underwriting loss reduced significantly to Rs. 47.47 million from Rs. 135.62 million.
• 💸 Investment and other income increased to Rs. 325.00 million from Rs. 296.37 million.
• ⭐ Earnings per share (EPS) increased to Rs. 1.28 from Rs. 1.02.
• 💼 Total assets increased to Rs. 7.398 billion from Rs. 6.484 billion.
• 🏢 Equity increased to Rs. 2.467 billion from Rs. 2.055 billion.
• 🚧 Outstanding claims including IBNR increased to Rs. 1.375 billion from Rs. 1.044 billion.
• ✅ The Board has expressed concerns over an IFRS 17 roadmap which needs a detailed analysis and management judgement.
• 🏦 Investments in equity securities surged to Rs. 2.730 billion from Rs. 2.009 billion.
• 🏛️ Investments in debt securities grew to Rs. 884.251 million from Rs. 526.085 million.
• 🤝 Loans, deposits and other receivables increased to Rs. 116.459 million from Rs. 85.406 million.
• ▶ The company’s short term borrowings include cash and short term borrowings for the period.
• 📉 The overdrawn bank balance for the period is reported

🎯 Investment Thesis

Given the positive trends in revenue and profitability, coupled with a significant reduction in underwriting losses, a HOLD recommendation is appropriate. The company shows promise, but faces lingering risks and regulatory implementation challenges. The company requires a closer monitoring.