The United Insurance Company of Pakistan Limited ("United Insurance" or "the Company") was incorporated as a public limited company on October 20, 1959, under the Companies Act. The Company has been listed on the Pakistan Stock Exchange (PSX) since its incorporation, reflecting its longstanding presence and transparency within Pakistan's regulated financial markets.

United Insurance was founded by Mr. Fakhruddin Valika, with its initial mandate encompassing both Life Assurance and General Insurance services. Over time, the Company strategically narrowed its focus to General Insurance, while continuously broadening and diversifying its product portfolio to meet evolving market demands. Most recently, in 2023, SPI Insurance Company Limited was amalgamated with and into the Company, further strengthening United Insurance's operational scale and market position within Pakistan's general insurance sector.

The Company is principally engaged in general insurance, underwriting business across Fire & Property Damage, Marine, Aviation & Transport, Motor, Crop, and Miscellaneous segments. In addition, the Company operates a Takaful Window since August 18, 2014, catering to the growing demand for Shariah-compliant insurance solutions. The Company maintains an extensive nationwide network of 150 branches, predominantly concentrated in Punjab, with its registered office situated in Karachi and its head office in Lahore.

United International Group ("the Group") holds a majority stake of approximately 86.69% in the Company, of which Associated Companies account for approximately 80.90% and Directors hold approximately 5.79%. Institutional investors, comprising Banks, Development Finance Institutions (DFIs), and Non-Banking Financial Institutions (NBFIs), collectively hold approximately 4.38%, while the National Investment Trust (NIT) and the Investment Corporation of Pakistan (ICP) hold a combined stake of approximately 2.16%. The Company's free float stands at approximately 6.41%, representing the remaining shareholding available to the general public.

The Company benefits from a sound and well-structured shareholding profile, underpinned by the Group's majority ownership, which provides a stable and resilient ownership framework conducive to long-term strategic continuity.

The Group has established a strong and diversified business presence across multiple sectors, including insurance, banking, technology, tracking, healthcare, and risk advisory. The Group's subsidiaries and associated entities demonstrate robust operational performance within their respective industries, reflecting the Group's capacity to effectively manage and grow a broad portfolio of businesses.

The Group possesses considerable financial strength and capacity to extend support to the Company, should the need arise, thereby providing an additional layer of financial security and stability to its operations.

The overall governance and strategic oversight of the Company is vested in a seven-member Board of Directors (BoD), inclusive of the Chief Executive Officer (CEO). The Board comprises two Independent Directors, two Executive Directors, and three Non-Executive Directors, ensuring a well-balanced composition that fosters sufficient independence in decision-making and policy formulation processes, in line with sound corporate governance principles.

Mr. M. Ashraf Khan, who assumed the role of Chairman in April 2024, brings over 36 years of professional experience to the Board. He succeeded Mr. Jamil A. Khan, who previously served as Chairman of the Board. Mr. Ihsan ul Haq Khan, serving as an Independent Director, contributes more than four decades of banking sector expertise to the Board's deliberations. Collectively, the Directors bring a diverse blend of professional backgrounds and industry experience, enriching the policy formulation process and reinforcing the Board's overall governance effectiveness.

To ensure effective and efficient governance, the Board has established four dedicated committees: the Ethics Committee, the Human Resource (HR) & Remuneration Committee, the Investment Committee, and the Audit Committee. These Committees convene on a quarterly basis to review the Company's performance and operational matters, with the proceedings of each meeting formally documented through recorded minutes, ensuring accountability and transparency in the Board's oversight functions.

The Company's external auditor, RSM Avais Hyder Liaquat Nauman Chartered Accountants, issued an unqualified audit opinion on the financial statements for the year ended December 2025. The firm holds a Quality Control Review (QCR) rating and is enlisted on the State Bank of Pakistan's (SBP) approved panel of auditors under Category 'A', reflecting its adherence to the highest professional and quality standards in the auditing profession.

The Company has established a clear and well-defined segregation of duties within its organizational structure. The Chief Executive Officer (CEO) is primarily responsible for overseeing core insurance-related activities, while the Executive Directors are entrusted with the management of business development functions. Notwithstanding this division of responsibilities, the CEO retains ultimate executive authority and serves as the final decision-making authority across all operational matters.

The management team is led by the Chief Executive Officer, Mr. M. Akram Shahid, who has held the position since May 2021 and has played a pivotal role in reinforcing and expanding the Company's market presence. The broader senior management team is well-equipped with considerable industry-specific knowledge and expertise, collectively contributing to the effective execution of the Company's strategic objectives and operational goals.

The management is supported by four dedicated committees, namely the Underwriting Committee, the Claim Settlement Committee, the Reinsurance and Coinsurance Committee, and the Risk Management & Compliance Committee. These Committees convene on a quarterly basis to review operational performance and formulate forward-looking strategies. The proceedings of all committee meetings are formally documented through recorded minutes, ensuring transparency, accountability, and continuity in the Company's management oversight framework.

United Insurance operates a proprietary, in-house developed Enterprise Resource Planning (ERP) solution, which facilitates real-time Management Information System (MIS) reporting by capturing critical operational and financial data. This capability is expected to enhance the overall efficacy and timeliness of the decision-making process across the organization. Furthermore, the Company is currently in the process of developing a Business Intelligence (BI) system, which, upon completion, is anticipated to further strengthen the Company's analytical and strategic planning capabilities.

The Company maintains a centralized claims processing function, whereby claims are initially intimated at the respective branch level; however, the authority for the appointment of surveyors and the subsequent approval of claim amounts is exclusively retained by the head office. This centralized approach ensures consistency, oversight, and prudent control over the claims settlement process, mitigating the risk of irregularities at the branch level.

The Company's investment activities are governed by a Board-approved Investment Policy Statement (IPS), which provides comprehensive guidelines, a structured execution framework, and clearly defined benchmarks across diverse investment categories. The Investment Committee undertakes quarterly performance assessments to evaluate the investment portfolio's performance against the established benchmarks, ensuring adherence to the prescribed policy parameters and alignment with the Company's overall financial objectives.

The underwriting and risk management functions are centralized at the head office, where all policies exceeding PKR 100 million are subject to head office approval. For policies below this threshold, the Company has established three dedicated zonal offices, strategically located in Lahore, Islamabad, and Karachi, to facilitate timely policy approval and issuance at the regional level. This tiered approval structure ensures robust risk oversight while maintaining operational efficiency across the Company's nationwide network.

Pakistan's general insurance industry recorded total Gross Premium Written (GPW) of approximately PKR 170 billion during the nine months ended September 2025 (9MCY25), compared to approximately PKR 171 billion in the corresponding period of the prior year (9MCY24), reflecting a marginal year-on-year decline of approximately 0.58%. The industry's underwriting performance witnessed a notable deterioration, with underwriting results declining by approximately 50% year-on-year to approximately PKR 4.8 billion (9MCY24: ~PKR 9.6 billion). Concurrently, investment income contracted by approximately 16% year-on-year, primarily attributable to the monetary easing cycle, collectively exerting considerable pressure on overall profitability across the general insurance sector.

As of December 2024, United Insurance holds a market share of approximately 4.7% within Pakistan's general insurance sector, positioning the Company among the top five players in the industry. This ranking reflects the Company's established market presence, competitive underwriting capabilities, and sustained growth trajectory within an increasingly competitive landscape.

The Company generates Gross Premium Written (GPW) from both Conventional and Takaful operations. During CY25, GPW declined by approximately 22.8% to approximately PKR 10.1 billion (CY24: ~PKR 13.0 billion), reflecting a contraction across both the Conventional (~21.3%) and Takaful (~29.7%) segments. Notwithstanding this decline, net insurance premium remained largely stable at approximately PKR 6.3 billion (CY24: ~PKR 6.3 billion), indicative of steady retention levels maintained by the Company. In terms of business mix, the portfolio remained concentrated, with the top segment accounting for approximately 48.5% of GPW in CY25 (CY24: ~40.6%), reflecting a degree of concentration risk. Going forward, the Company aims to regain growth momentum in GPW through targeted business expansion initiatives, with a view to broadening its portfolio diversification and enhancing its competitive positioning within the general insurance sector.

During CY25, the Company's underwriting performance demonstrated a notable improvement, with underwriting results rising to approximately PKR 2.5 billion (CY24: ~PKR 2.1 billion), supported by a stronger combined ratio of approximately 65.3% (CY24: ~71.0%), reflecting enhanced underwriting discipline and cost efficiency. However, investment performance weakened significantly, as the Company reported a net investment loss of approximately PKR 190 million (CY24: income of ~PKR 544 million), primarily attributable to losses on disposal of investments. Consequently, the bottom line declined to approximately PKR 1.5 billion in CY25 (CY24: ~PKR 2.0 billion). Notwithstanding the improvement in underwriting results, overall profitability remained under pressure, largely on account of subdued investment returns, underscoring the need for a more resilient and diversified investment strategy going forward.

The Company's investment portfolio remains predominantly composed of cash and bank balances, which account for approximately 65% of total investments, followed by government securities at approximately 19%, investment properties at approximately 13%, and other financial instruments comprising the remainder. During CY25, the Company reported a net investment loss of approximately PKR 190 million (CY24: income of ~PKR 544 million), primarily driven by losses on disposal of investments, causing the investment yield to turn negative at approximately -4.8%, compared to a positive yield of approximately 15.2% in CY24. This significant deterioration in investment performance underscores the need for a more prudent and strategically diversified investment management approach going forward, as stable and consistent investment returns remain a critical contributor to the Company's overall earnings and financial resilience.

The Company has plans to establish a life insurance subsidiary; however, the recently enhanced minimum capital requirements stipulated by the Securities and Exchange Commission of Pakistan (SECP) necessitate careful consideration and strategic financial planning in this regard. In parallel, the Company's management remains actively engaged in identifying and pursuing viable growth opportunities, reflecting a proactive approach to business expansion and long-term value creation.

The Company's claims management efficiency demonstrated a notable improvement during CY25, with claims outstanding days reducing to approximately 268 days (CY24: ~323 days), and the loss ratio improving to approximately 29.1% (CY24: ~36.2%), collectively indicative of enhanced claims processing and settlement capabilities. Notwithstanding these improvements, outstanding claims increased to approximately PKR 6.0 billion (CY24: ~PKR 4.0 billion), reflecting a build-up in unsettled obligations. Concurrently, liquid assets coverage relative to outstanding claims marginally weakened to approximately 0.6x (CY24: ~0.8x), suggesting that liquidity buffers remain somewhat stretched. While the overall trajectory of claims efficiency indicators is encouraging, the elevated level of outstanding claims and thinning liquidity coverage warrant continued vigilance and proactive management attention.

The Company continues to maintain a well-established panel of reputable international and local reinsurers, ensuring adequate risk mitigation through diversified and prudently structured reinsurance arrangements. Reinsurance expense as a percentage of GPW increased to approximately 42.7% in CY25 (CY24: ~37.7%), reflecting a relatively higher degree of risk cession during the year. While this elevated cession level contributes to a more conservative risk retention profile, it also exerts pressure on net premium retention, warranting a careful reassessment of the reinsurance program to strike an optimal balance between risk mitigation and premium retention going forward.

The Company's liquid investment book stood at approximately PKR 3.4 billion in CY25 (CY24: ~PKR 3.5 billion), reflecting a largely stable liquidity position. However, liquidity coverage, measured as liquid assets net of borrowings relative to outstanding claims, declined to approximately 0.6x (CY24: ~0.8x), primarily reflecting the pressure exerted by the increase in outstanding claims obligations. On a more positive note, liquid assets to net premium improved marginally to approximately 0.5x (CY24: ~0.4x), indicating a slight enhancement in operating liquidity. Overall, while cashflow coverage remains at a moderate level, the rising claims burden continues to exert pressure on the Company's liquidity profile, underscoring the importance of proactive claims management and judicious liquidity planning to safeguard financial stability going forward.

The Company's equity base strengthened considerably to approximately PKR 8.4 billion in CY25 (CY24: ~PKR 6.4 billion), underpinned by profit retention and capital expansion initiatives. Paid-up capital increased to approximately PKR 4.2 billion (CY24: ~PKR 3.5 billion), reflecting the Company's commitment to bolstering its capital foundation. Notwithstanding a dividend payout of approximately PKR 694 million during the year, the Company maintained robust capitalization levels, demonstrating a prudent balance between shareholder returns and capital conservation. The equity to net premium ratio improved to approximately 1.0x (CY24: ~0.8x), indicative of enhanced capital adequacy and a strengthened ability to absorb underwriting risks. The Company remains comfortably above prevailing regulatory capital requirements, providing a meaningful buffer to support future business growth and strategic expansion initiatives.