⚡ Flash Summary

Reliance Insurance Company Ltd. reported its unaudited financial results for the period ended September 30, 2025. The company declared no interim cash dividend, bonus shares, or right shares. The financial statements include the Statement of Financial Position, Profit and Loss Account, Statement of Changes in Equity, and Statement of Cash Flows. Key highlights from the income statement show net insurance premium increased while insurance claims and acquisition expenses decreased.

📌 Key Takeaways

• 💰 Net insurance premium increased to PKR 155.30 million for the quarter ended September 30, 2025, compared to PKR 134.16 million for the same period in 2024.
• 📉 Net insurance claims decreased to PKR 37.35 million for the quarter, down from PKR 46.08 million in 2024.
• 💸 Net commission expenses also decreased to PKR 35.54 million from PKR 28.17 million year-over-year.
• 📉 Insurance claims and acquisition expenses decreased to PKR 72.90 million from PKR 74.26 million year-over-year.
• 📊 Management expenses increased to PKR 61.91 million, up from PKR 47.63 million in 2024.
• 📈 Underwriting results improved significantly to PKR 20.49 million compared to PKR 12.28 million in the previous year.
• 🚀 Investment income increased substantially to PKR 275.84 million, compared to PKR 45.84 million in 2024.
• ➖ Other expenses increased to PKR 13.12 million, from PKR 10.58 million year-over-year.
• ✨ Profit before taxation increased sharply to PKR 285.91 million, up from PKR 52.95 million in 2024.
• 📉 Deferred taxation shifted to a higher expense of PKR (63.58) million vs an income of PKR 6.06 million
• ✅ Profit after taxation significantly increased to PKR 200.81 million, compared to PKR 36.14 million in 2024.
• ⬆️ Earnings after tax per share (basic and diluted) increased to PKR 2.00, up from PKR 0.36 in 2024.
• Share capital increased to PKR 1,004,723,030 while General reserves held steady at PKR 400,000,000.

🎯 Investment Thesis

Based on the improved financial performance, especially the significant increase in profit after taxation and EPS, a HOLD recommendation is appropriate. The company has demonstrated growth, but further monitoring of expenses and investment strategies is needed. A price target of PKR 20 (based on 10x current EPS) with a time horizon of 12 months is set, contingent on sustaining this level of performance and maintaining efficient operations.