⚡ Flash Summary

Universal Insurance Company Limited (UIC) reported a significant turnaround in its financial performance for the nine months ended September 30, 2025. The company achieved a profit after tax of PKR 31.184 million, a stark contrast to the loss of PKR (18.968) million in the same period last year. This improvement is attributed to a substantial increase in investment and other income, as well as the underwriting of direct captive business of selected classes. The directors express optimism about continued improvements in financial results through their approved revival strategy.

📌 Key Takeaways

• ✅ UIC reports a profit after tax of PKR 31.184 million for the nine months ended September 30, 2025, compared to a loss of PKR (18.968) million in the same period last year.
• 📈 Gross written premium increased significantly to PKR 39.074 million from PKR 20.482 million, indicating strong business growth.
• 💰 Net insurance premium rose to PKR 23.767 million, up from PKR 14.123 million, showcasing improved underwriting performance.
• 📉 Net insurance claims significantly decreased to PKR (21.017) million from PKR 2.302 million, reflecting better risk management.
• 📊 Underwriting results improved substantially, with a loss of PKR (9.985) million compared to a loss of PKR (48.028) million in the prior period.
• 💸 Investment and other income increased significantly to PKR 48.374 million from PKR 31.022 million, boosting overall profitability.
• 🚀 Profit before taxation reached PKR 34.374 million, a significant recovery from a loss of PKR (11.798) million last year.
• ⭐ Earnings per share (EPS) turned positive at PKR 0.62, compared to a loss per share of PKR (0.38) in the previous period.
• 🏢 The company’s revival strategy, focusing on direct captive business, is credited for the improved financial outcomes.
• ✨ The Directors anticipate further improvements in financial results by the end of the current financial year.
• 🏦 Total Assets increased to PKR 889.001 million from PKR 851.441 million at the end of 2024.
• 💸 Cash and cash equivalents decreased to PKR 40.846 million from PKR 325.306 million, a concerning drop which needs to be analyzed.

🎯 Investment Thesis

Based on the improved financial performance and positive outlook, a BUY recommendation is warranted for Universal Insurance Company Limited. The company’s revival strategy is showing promise, and the positive EPS indicates potential for future growth. A price target of PKR 8.50 is set, based on a multiple of 14x 2025 EPS, with a time horizon of 12 months.