⚡ Flash Summary

Pakistan Reinsurance Company Limited (PakRe) held a corporate briefing session on November 14th, 2025. The company was established in 1952 and is the sole reinsurance organization in Pakistan. PakRe is a public sector listed company working under the administrative control of the Ministry of Commerce, Government of Pakistan. The financial highlights show an increase in net insurance premium and total assets, but a decrease in profits for the nine months ended September 30, 2025 compared to the same period in 2024.

📌 Key Takeaways

• 🏢 PakRe was formerly called Pakistan Insurance Corporation (PRCL), established in 1952.
• 🇵🇰 PakRe is the sole reinsurance organization operating in Pakistan.
• 🏛️ PakRe is a public sector listed company under the administrative control of the Ministry of Commerce, Government of Pakistan.
• ✈️ PakRe provides insurance solutions in Aviation, Marine, Engineering, Fire, and Accident sectors.
• 📍 PakRe is headquartered in Karachi, Pakistan.
• 📊 As of September 30th, 2025, Authorized Capital: PKR 25 Billion and Issued, subscribed, and paid-up capital: PKR 9 billion.
• 💰 Total Assets: PKR 81.72 B, Total Liabilities: PKR 56.57 B, Net Assets: PKR 25.15 B (as of Sept 30, 2025).
• 🤝 The Federal Government holds a 51% stake in PakRe.
• 🏢 State Life holds 24.41% of the company’s shares.
• 🧑‍🤝‍🧑 Individuals & Others hold 24.59% stake.
• 📚 Book Value Per Share (PKR): 27.94.
• Earnings Per Share (PKR) (9M 2025): 2.03.
• 📉 Net insurance premium decreased by PKR 1,061.49 million (-13%) for 9M 2025 compared to 9M 2024.
• 📈 Net Insurance claims increased by PKR 733.05 million (18%) for 9M 2025 compared to 9M 2024.
• 📉 Total profit from operations decreased by PKR 1,853.41 million (-40%) for 9M 2025 compared to 9M 2024.

🎯 Investment Thesis

HOLD. While PakRe has a strong position as the sole reinsurer in Pakistan, its recent financial performance raises concerns. The decrease in premium income and profitability could negatively impact shareholder value. Based on the current financial trend, HOLD is appropriate with a price target range of PKR 25-30 based on book value per share, considering the negative earnings growth. Time horizon: 12-18 months.