⚡ Flash Summary

Askari Life Assurance Company Limited reported a significant turnaround for the nine months ended September 30, 2025, achieving a profit after tax of PKR 40.95 million compared to a loss of PKR 65.12 million in the same period last year. Gross premium revenue surged by 75% to PKR 2,196.38 million, driven by growth in both individual and group life segments. Despite a decline in investment income, the company demonstrated improved profitability and operational efficiency, reinforcing its prudent business strategy and robust risk management framework. The company remains optimistic about achieving sustained growth and long-term profitability.

📌 Key Takeaways

• 📈 Gross premium revenue increased by 75% to PKR 2,196.38 million compared to PKR 1,253.05 million in the corresponding period of last year.
• 👤 Individual life business grew significantly, reaching PKR 1,794.26 million against PKR 872.27 million in the same period last year.
• 👥 Group life business stood at PKR 402.12 million, compared to PKR 380.77 million in the corresponding period.
• 📉 Investment and other income declined to PKR 245.03 million from PKR 276.84 million in the corresponding period due to lower interest rates.
• 📊 The Company’s investment portfolio increased to PKR 3,304.10 million as of September 30, 2025, from PKR 2,703.69 million as of December 31, 2024.
• 💰 Net insurance benefits expense increased by 60% to PKR 326.77 million, driven by the rise in Gross Written Premium (GWP).
• ⚙️ Marketing, administration, and other expenses increased by 14% to PKR 345.95 million.
• ✅ Profit after tax reached PKR 40.95 million, a significant improvement from a loss of PKR 65.12 million in the same period of last year.
• ⭐ The company maintains its focus on sustainable growth, digital innovation, and operational excellence.
• 🤝 The Board acknowledges the support of policyholders, shareholders, business partners, regulators, and employees.

🎯 Investment Thesis

We recommend a BUY rating for Askari Life Assurance Company Limited. The company’s recent performance demonstrates a significant turnaround with substantial revenue growth and improved profitability. We believe that Askari Life is well-positioned to capitalize on the growing demand for insurance products in Pakistan. We set a price target of PKR 1.00, based on discounted cash flow analysis, representing an upside of 70% from the current market price, with a medium-term (12-18 months) time horizon.