⚡ Flash Summary

Reliance Insurance Company Limited (RICL) reported a strong performance for the third quarter ended September 30, 2025. The company achieved a 25.14% growth in gross premium, reaching Rs. 1,017.290 million, driven by increased Takaful contributions. Investment income also saw a substantial rise due to a bullish trend in the Pakistan Stock Exchange (PSX). The company’s profit before tax increased significantly, leading to higher earnings per share (EPS).

📌 Key Takeaways

• 📈 Gross premium increased by 25.14% to Rs. 1,017.290 million.
• 💰 Takaful contributions grew, reaching Rs. 169.028 million.
• ⬆️ Net premium for the nine-month period rose by 9.79% to Rs. 445.074 million.
• 📉 Net claims incurred decreased to Rs. 94.606 million.
• 💪 Underwriting profit increased to Rs. 83.696 million.
• 💹 Investment income surged to Rs. 451.267 million.
• 🐂 Unrealized gains on investments: Rs. 304.639 million vs. Rs. 72.713 million last year.
• ➗ PSX Index increased by 43.75%, from 115,126.90 to 165,493.58 points.
• 🔻 Dividend income declined to Rs. 79.347 million.
• ✔️ Profit before Tax reached Rs. 492.261 million.
• ✔️ Earnings per Share (EPS) increased to Rs. 3.48.
• 🌱 Window Takaful Operations contributed Rs. 15.134 million in profit before tax.
• ✅ Participant Takaful Fund reflected an accumulated surplus of Rs. 101.122 million.
• 🏦 Policy rate maintained at 11% by the State Bank of Pakistan.
• 🎯 Expect modest economic growth around 3%.

🎯 Investment Thesis

The company’s robust growth, strong financial performance, and favorable industry trends warrant a BUY recommendation. The company demonstrated significant growth in revenue and EPS. Based on the EPS of Rs 3.48 and assuming a P/E ratio of 8x, the price target is Rs 27.84. The time horizon is medium-term, approximately 12-18 months.