⚡ Flash Summary

Jubilee General Insurance announced its 9M 2025 performance, showcasing a mixed bag of results. Gross written premium increased by 6% year-over-year (YoY) to PKR 21,704 million, while net premium rose 9% to PKR 7,447 million. However, underwriting results experienced a significant decline of 74%, falling to PKR 200 million. Despite this, investment income surged by 51% to PKR 5,135 million, contributing to a profit before tax of PKR 5,220 million, a 28% increase YoY. Earnings per share (EPS) also saw a substantial rise of 36% to PKR 16.43.

📌 Key Takeaways

• ⬆️ Combined Gross Written Premium (GWP) increased by 6% YoY to PKR 21,704 million.
• ⬆️ Combined Net Premium grew by 9% YoY to PKR 7,447 million.
• 📉 Combined Net Claims increased significantly by 35% YoY to PKR 5,120 million.
• 📉 Underwriting Results (Technical Profit) declined sharply by 74% YoY to PKR 200 million.
• ⬆️ Investment Income surged by 51% YoY to PKR 5,135 million.
• ⬆️ Profit Before Tax increased by 28% YoY to PKR 5,220 million.
• ⬆️ Profit After Tax rose by 35% YoY to PKR 3,242 million.
• ⬆️ Earnings Per Share (EPS) increased by 36% YoY to PKR 16.43.
• 🔥 Fire segment contributed 39% to the portfolio mix in 9M 2025, down from 43% in 9M 2024.
• 🏥 Accident & Health segment increased its share to 20% of the portfolio mix.
• 📉 Underwriting results are significantly impacted by claims.

🎯 Investment Thesis

I recommend a HOLD rating on Jubilee General Insurance. While the company demonstrates growth in premiums and investment income, the significant decline in underwriting results warrants caution. The company needs to address the issues impacting underwriting profitability and demonstrate sustainable earnings growth. The current price target is PKR 20, with a medium-term horizon. This is based on the EPS and a conservative PE ratio.