⚡ Flash Summary
The Pakistan General Insurance Company Limited reported a net loss for the quarter ended September 30, 2025, contrasting with a profit in the previous year. Underwriting results deteriorated significantly, while investment income provided some offset. Overall, the company’s total equity increased slightly due to retained earnings. Cash flow from operating activities remained positive but significantly lower than the previous year.
📌 Key Takeaways
- 📉 Net insurance premium increased to PKR 15.16 million from PKR 0.31 million YoY.
- ⚠️ Underwriting results worsened to a loss of PKR 1.19 million compared to a loss of PKR 5.56 million YoY.
- 💰 Investment income decreased to PKR 3.46 million from PKR 4.43 million YoY.
- 🏢 Management expenses increased to PKR 12.10 million from PKR 5.82 million YoY.
- ❌ Net loss for the period was PKR 9.74 million, compared to a loss of PKR 6.20 million YoY.
- 📉 Basic loss per share worsened to PKR (0.19) from PKR (0.08) YoY.
- 🏦 Total assets increased to PKR 837.43 million from PKR 716.25 million since Dec 31, 2024.
- 📈 Total equity increased to PKR 576.01 million from PKR 557.78 million since Dec 31, 2024.
- 💸 Cash and bank balances decreased to PKR 13.40 million from PKR 31.47 million since Dec 31, 2024.
- 💸 Net cash flow from operating activities decreased to PKR 18.68 million from PKR (7.29) million YoY.
- ⬇️ Net cash outflow from investing activities changed to PKR (45.16) million from cash inflow of PKR 36.01 million YoY.
🎯 Investment Thesis
Based on the net loss and declining profitability, a SELL recommendation is warranted. The company faces significant challenges in its underwriting business and needs to improve its cost management. A price target of PKR [lower than current market price] is set, with a time horizon of MEDIUM_TERM, anticipating further deterioration in financial performance if corrective measures are not taken.
Disclaimer: AI-generated analysis. Not financial advice.