The organization was initially established as the National Insurance Corporation ("The Corporation") in 1976 under the NIC Act, 1976. Subsequently, in January 2001, it was restructured and converted into the National Insurance Company Limited (NICL) to operate in accordance with the provisions of the Insurance Ordinance, 2000.

The National Insurance Corporation was established in 1976 with an initial paid-up capital of PKR 5mln, primarily to insure public sector properties. This mandate covered assets owned by the Government, autonomous bodies, and organizations in which the Government of Pakistan held a controlling financial interest. Subsequently, in 2001, the Corporation was restructured and converted into the National Insurance Company Limited (NICL). NICL has a paid-up capital of PKR 2bln as compared to NIC, which had a paid-up capital of Rs 5 million. The change in stature from a statutory corporation to a corporate body was aimed at running this organization on purely commercial lines.

The Company operates in conventional business, including fire, marine, accident, engineering, aviation, marine hull, crop loan, bankers’ blanket bond, cybercrime, and other miscellaneous insurance. In addition to its commercial operations, it provides general insurance coverage for state-owned movable and immovable assets belonging to the Federal and Provincial Governments, Local Authorities, and Statutory Corporations, in accordance with Section 166 of the Insurance Ordinance, 2000.

The National Insurance Company Limited is 100% owned by the Government of Pakistan (GoP) and works under the administrative control of the Ministry of Commerce (MoC).

NICL is a public sector concern, providing stability to the ownership structure.

The Company is managed and governed by the Board of Directors, all appointed by Government of Pakistan via ministry of finance which provides sovereign expertise.

NICL gathers support from sovereign backing which ensures strong financial stability.

Overall governance oversight is entrusted to a Nine-member Board of Directors (BoD), all nominated by the Government of Pakistan, reflecting a strong sovereign presence in the Company’s governance framework. The Board comprises five Independent Directors, including the Chairman, thereby ensuring an appropriate level of independence and strategic oversight. One director is executive and the remaining three members serve as Non-Executive Directors, providing effective management representation and facilitating alignment between the Company’s strategic objectives and operational execution.

The Board of Directors is chaired by Mr. Ali Syed, an Independent Director with extensive professional experience spanning several years across diverse corporate environments. He has been associated with the Board for the past two years, contributing to strategic oversight and governance. Mr. Ali Syed holds a Master’s degree in Economics and an MBA with a specialization in Finance and International Business, reflecting a strong academic foundation aligned with his professional expertise. Mr. Nasir Hamid is a civil servant and holds a Master’s degree in English Literature. Dr. Iftikhar Amjad is also a civil servant and possesses an MBBS degree. Mr. Abid Sattar holds an M.Phil. in Economics and Political Development from the University of Cambridge, UK. Mr. Shahid Sattar is a retired banker with extensive professional experience. Sahibzada Rafat Ali holds a BSc in Textile Engineering along with an MBA.

BoD meets monthly and is supported by several specialized committees, including the Audit, Ethics, Human Resource & Remuneration, Nomination, Investment, Procurement, Real Estate, IT & Law Committee. All committees include representation from the Chairman and actively contribute to effective oversight and governance.

For CY24, BDO Ebrahim and Co. Act as the external auditor and issued an unqualified opinion. The firm is QCR-rated and listed on the SBP’s panel under category “A.” For CY25, Company has appointed Parker Russel as an external auditor. Currently audit for CY25 is in progress.

NICL is governed by a Board of Directors, with the Chief Executive Officer (CEO) reporting directly to the Board and serving as the top executive. The CEO oversees eleven senior leadership roles, including the Chief Internal Auditor, Head of Risk Management, Executive Directors of Corporate Services, Head of Underwriting, Head of Claims, Head of Reinsurance, Chief Financial Officer, Chief Investment Officer, Head of Law, and Company Secretary & Head of Compliance. Corporate Services encompasses HR, Real Estate and Administration. These leaders collectively ensure strategic objectives, risk management, and regulatory compliance across the organization. Operational support is provided through zonal underwriting and claims teams in the South, Central, and North regions. Additionally, a dedicated Takaful Window operates as an independent vertical with its own underwriting, claims, and accounts functions under the CEO. The structure reflects a clear hierarchy and well-defined functional responsibilities, promoting efficiency and accountability across all Departments.

Mr. Farman Ullah Zarkoon is the CEO since March-24. He is a seasoned professional with over 17 years of experience and a long-standing association with NICL. He holds a Chartered Insurer (ACII) designation, an MBA in International Business in Developing & Emerging Markets (Germany), an MS in International Trade & Marketing, an LLB from the University of London, and a BS in Computer Engineering from GIK. His expertise spans strategic management, international trade, risk oversight, and operational leadership. Mr. Jawad Ali Shaikh serves as the Chief Financial Officer (CFO) of the Company and possesses over 13 years of diversified professional experience in finance, accounting, auditing, taxation, and corporate financial management. As a qualified FCMA, CPA, and APFA, he brings extensive expertise in financial reporting, regulatory compliance, budgeting, internal controls, and strategic financial planning, thereby strengthening the Company's financial management and governance framework.

The management is supported by key committees, including the Underwriting, Reinsurance & Coinsurance Committee, the Claims Settlement Committee, and the Risk Management & Compliance Committee. These committees provide oversight, guidance, and strategic input on their respective functional areas. They play a vital role in ensuring effective risk management, regulatory compliance, and operational efficiency. Meetings are convened on a quarterly basis to review performance, address issues, and ensure alignment with the company’s strategic objectives.

National Insurance Company Limited (NICL) is using Integrated General Insurance System (IGIS) as its core insurance ERP solution. System ensures seamless integration between underwriting, claims, reinsurance, and financial accounting modules, enabling real-time financial posting and reporting.

The Claims Settlement Committee is responsible for establishing and overseeing operational policies to uphold the Company’s core values, while remaining aligned with its mission. The Committee ensures transparency and efficiency in the claims settlement process through defined governance and oversight mechanisms. Its key responsibilities include devising the Company’s claims settlement policy and monitoring the overall claims position. It also oversees the panel of surveyors, ensuring independence and managing any potential conflicts of interest. Additionally, the Committee ensures the maintenance of adequate claims reserves and determines the circumstances under which claim disputes are escalated for its review.

The Investment Committee is responsible for formulating and recommending investment policies and strategies aligned with the Company’s strategic objectives, with a focus on building a high-quality, diversified portfolio while ensuring optimal returns and capital preservation. It oversees investment decisions, risk exposure, asset allocation, and liquidity management, ensuring compliance with regulatory requirements and internal risk policies. The Committee also monitors portfolio performance, evaluates investment advisors, and provides strategic recommendations to the Board on investment-related matters.

The Risk Management & Compliance Committee oversees the Company’s risk management and compliance functions, ensuring effective identification, assessment, and mitigation of risks. It reviews the insurer’s risk profile, monitors adherence to applicable laws, regulations, and internal policies, and evaluates reports on compliance activities, weaknesses, and breaches. The Committee supervises whistleblowing mechanisms and advises the Board on compliance risks, internal controls, and corrective measures. It also assesses the sustainability of solvency margins, reviews reinsurance arrangements, and evaluates potential changes in regulatory capital requirements. Additionally, the Committee reviews the Company’s SWOT analysis and provides recommendations to the Board for informed decision-making.

Pakistan's general insurance sector comprises 28 companies regulated by the Securities and Exchange Commission of Pakistan (SECP), with the sector's contribution to GDP rising, reflecting gradual deepening of insurance penetration. The market remains highly concentrated, with five large players commanding a 68.2% share of net premium written as of 9MCY25, while 17 small players collectively account for less than 10%. Gross Premium Written (GPW) softened in 9MCY25 with GPW remaining nearly flat; net premium written, however, registered a healthier 16.4% growth over the same period, reflecting improved retention. Fire & Property Damage remains the dominant business line, though its share has declined from ~57.6% to ~51.3% between 9MCY24 and 9MCY25, signaling gradual portfolio diversification toward Marine and Health segments. Profitability, while still adequate, moderated in 9MCY25, with Return on Equity easing to 10.8% (15.3% in CY24), driven by a ~12.7% decline in investment income and subdued premium growth; the overall combined ratio stood at ~94.9% for conventional insurers, though the Takaful segment remains under significant underwriting stress at ~191.4%. Financial risk indicators — liquidity (liquid assets-to-net claims of 5.33x) and capitalization (equity-to-net premium revenue of 2.1x) — remain at healthy levels, underpinning the sector's overall solvency position despite near-term earnings pressure.

NICL maintains an adequate market share, as it provides insurance coverage to the majority of government entities.

The Company’s Gross Premium Written (GPW) is entirely derived from Conventionl business segment. GPW experienced growth of 43% in CY25 reaching to PKR 30.6bln (CY24: PKR 21.3bln) with the business mix comprising Engineering (45%), Marine, aviation and transport (27%), Fire and Property (24%), Motor (3%) and Miscellaneous (2%). Going forward, GPW is expected to maintain a similar composition, supported by continued momentum in core conventional segments and stable demand from government-owned entities.

During CY25, the Company reported an underwriting profit of approximately PKR 3.2bln, reflecting an improvement from PKR 2.5bln in CY24. Underwriting expenses declined to  PKR 4.6bln in CY25 (CY24: PKR 5.1bln), primarily attributable to lower management expenses and net insuramce claims. Investment income continued to support overall earnings, resulting in a profit after tax of PKR 8.8bln (CY24: PKR 7.9bln), representing 11% year-on-year increase driven by both investment income and underwriting performance. Going forward, disciplined underwriting and prudent risk selection are expected to further strengthen underwriting profitability and support the Company’s overall earnings profile in CY26.

The Company’s investment portfolio is primarily allocated to Government Securities, which constitute approximately 66% of the investment book, followed by Equity investments at 16.2%, Cash and Bank balances 11.3%, investment properties 3% and term deposits 2.8%, During CY25, the Company generated investment income of PKR 11.3bln, reflecting a 15% decline from PKR 13.4bln in CY24, mainly driven by monetary easing. Going forward, sustained investment income is expected to provide meaningful support to profitability and enhance the Company’s earnings resilience.

NICL envisions prioritizing operational efficiency while enhancing value across its existing operations. The Company aims to expand its portfolio and achieve strategic growth in the coming years through innovative initiatives. NICL has successfully launched Agri Loan Insurance in collaboration with National Bank of Pakistan and Bank of Khyber. NICL is also working on introducing Microfinance and Health Insurance products to provide affordable coverage to low-income populations, particularly in rural areas, in line with government policies. The Company’s portfolio includes Aviation, Engineering, Fire, Marine Hull, Marine Cargo, Motor, Miscellaneous, Travel, and Crop Insurance, reflecting a diversified risk coverage strategy. NICL primarily serves government institutions, which constitute the majority of its customer base.

As of CY25, claims outstanding days increased significantly to 2,275 days from 545 days in CY24, primarily due to timing differences in claims settlement. Net insurance claims declined by 35% to approximately PKR 1.3bln (CY24: PKR 2bln), indicating a lower incidence of claims during the period. Despite maintaining adequate liquidity and balance sheet strength to meet its claims obligations, the elevated settlement cycle highlights underlying inefficiencies. Accordingly, the establishment of a structured claims management framework is essential to ensure timely settlements which is at that moment. This would also help mitigate operational inefficiencies and counterparty risks while strengthening overall claims governance.

The Company maintains reinsurance arrangements maorly with Pakistan Reinsurance Company Limited (rated ‘AA+’ by VIS). The associations with other international reinsurers strengthen the Company’s risk mitigation framework and reflect positively on its underwriting capacity and financial stability.

As of CY25, the Company’s liquidity profile strengthened, with liquid assets to net insurance premium cover improving to 11.2x (CY24: 9.7x), while liquid assets to outstanding claims cover increased to 1.3x from 0.9x in the same period last year, underscoring the Company’s enhanced claims-paying capacity. The improvement in coverage metrics was driven by a 21% YoY increase in liquid assets, which rose to approximately PKR 95.3bln (CY24: PKR 81ln). Going forward, liquidity coverage is expected to remain stable.

As of CY25, shareholders’ equity increased to approximately PKR 74bln from PKR 65bln in CY24, primarily driven by profit accretion during the period. The Company’s paid-up capital remained unchanged at PKR 2bln. Going forward, the equity base is expected to follow a similar trajectory, supported by sustained earnings retention and stable capital structure.