⚡ Flash Summary

Premier Insurance Limited (PINL) reported its financial results for the nine months ended September 30, 2025. The company’s net insurance premium decreased to PKR 204.659 million compared to PKR 211.947 million in the same period last year. Despite the decrease in premium, the company managed to increase its profit after taxation to PKR 87.941 million, significantly higher than the PKR 21.047 million reported in the corresponding period of 2024. This increase in profitability was primarily driven by higher investment income and effective cost management.

📌 Key Takeaways

• 📉 Net insurance premium decreased by 3.4% YoY, from PKR 211.947 million to PKR 204.659 million.
• ✅ Net insurance claims decreased by 11.5% YoY, from PKR 112.878 million to PKR 125.896 million.
• 👍 Investment income increased significantly by 45.1% YoY, from PKR 133.868 million to PKR 194.317 million.
• 💰 Profit after taxation surged by 317.8% YoY, from PKR 21.047 million to PKR 87.941 million.
• ⭐ Basic and diluted earnings per share (EPS) increased to PKR 1.74 from PKR 0.42 YoY.
• ❌ Underwriting results showed a loss of PKR 58.282 million, an improvement from the loss of PKR 102.548 million in the previous year.
• 🏢 Management expenses decreased by 18.6% YoY, from PKR 185.641 million to PKR 151.161 million.
• 🏦 Total assets increased by 8.0% from December 31, 2024, from PKR 3,311.927 million to PKR 3,559.759 million.
• 🧾 No cash dividend, bonus shares, or right shares were recommended by the board.
• 💸 Cash flow from investing activities showed a net inflow of PKR 224.817 million compared to PKR 154.541 million in the prior year.
• 📉 Cash used in operating activities was PKR 229.434 million, compared to PKR 139.436 million in the previous period.
• 🏢 Equity securities investments stood at PKR 1,047.767 million, a rise from PKR 878.299 million at the end of 2024.
• ⭐ Accumulated losses decreased from PKR 939.890 million as of December 31, 2024, to PKR 851.949 million.
• 👍 Total comprehensive income for the period reached PKR 61.797 million, a significant turnaround from PKR -10.701 million in the prior year.

🎯 Investment Thesis

Given the mixed performance and several risks, a HOLD recommendation is appropriate for Premier Insurance Limited. The company has shown improved profitability driven by investment income and cost management, but declining premium revenue and negative operating cash flow are concerning. A price target will require a deeper dive and sector comparable analysis, and more clarity is needed on whether improvements can be sustained. Time horizon: MEDIUM_TERM.