⚡ Flash Summary

The United Insurance Company of Pakistan Ltd. reported its 3rd Quarter 2025 results, showcasing a mixed performance. Gross written premium for the conventional business decreased to Rs. 5,618.88 million from Rs. 6,021.76 million in 2024, while net premium income increased to Rs. 3,123.641 million from Rs. 2,886.121 million. Profit before tax decreased to Rs. 1,014.529 million from Rs. 1,244.086 million, and earnings per share (EPS) fell to Rs. 2.13 from Rs. 2.52. Despite a challenging economic environment, the company demonstrated stability and improved underwriting results, while also experiencing growth in its Takaful operations investment income.

📌 Key Takeaways

• 📉 Gross written premium for conventional business decreased to Rs. 5,618.88 million in 2025 vs. Rs. 6,021.76 million in 2024.
• 📈 Net premium income for conventional business increased to Rs. 3,123.641 million in 2025 vs. Rs. 2,886.121 million in 2024.
• 💰 Profit before tax decreased to Rs. 1,014.529 million in 2025 vs. Rs. 1,244.086 million in 2024.
• 💲 Earnings per share (EPS) decreased to Rs. 2.13 in 2025 vs. Rs. 2.52 in 2024.
• 🔥 Underwriting results improved to Rs. 1,180.948 million in 2025 vs. Rs. 1,055.361 million in 2024.
• 💸 Management expenses increased to Rs. 1,095.405 million in 2025 vs. Rs. 1,057.026 million in 2024.
• 🤝 Written gross contribution for Window Takaful decreased to Rs. 1,400.690 million in 2025 vs. Rs. 1,663.904 million in 2024.
• 🚀 Investments income of Participants Takaful fund increased to Rs. 20.948 million in 2025 vs. Rs. 15.660 million in 2024.
• 📊 Investments income of the Operator’s fund increased to Rs. 36.365 million in 2025 vs. Rs. 22.642 million in 2024.
• 📈 General, administrative and management expenses of the operator increased to Rs. 493.648 million in 2025 vs. Rs. 433.577 million in 2024.
• ⭐ Total assets increased to Rs. 16,558.890 million in 2025 vs. Rs. 16,053.484 million in 2024.
• Equity increased to Rs. 6,281.641 million vs. Rs. 5,436.030 million

🎯 Investment Thesis

HOLD. The mixed performance in 3Q25, with declining premiums and EPS but improved underwriting results and investment income, suggests caution. While the company shows stability and growth in certain areas, declining profitability is a concern. A hold is warranted until there is clearer evidence of sustained improvement in key financial metrics and a stabilization of premium income.