Adamjee Life Assurance Company Limited ("Adamjee Life" or the "Company”) was incorporated in Pakistan on August 04, 2008 as a public unlisted company under the Companies Act, 2017 (Previously Companies Ordinance,1984). The Company was converted into a public limited company on March 4, 2022 and registered itself on Pakistan Stock Exchange.

Adamjee Life is part of the Nishat Group, a diversified conglomerate with interests across multiple domestic and international sectors. The Company was established through a strategic partnership between Adamjee Insurance Company Limited and Hollard Life Assurance Company Limited, an associate company of IVM Intersurer B.V., operating in South Africa, and commenced operations in April 2009. It is a subsidiary of Adamjee Insurance Company Limited. The Company subsequently expanded into Shariah-compliant business, with the SECP authorizing window Takaful operations for family Takaful products in 2016. The registered office of the Company is located at 5th Floor, Islamabad Stock Exchange Towers, 55-B, Jinnah Avenue, Blue Area, Islamabad.

The Company operates in both conventional and Takaful segments, offering a diversified range of life insurance products, including Individual Life, Group Life, Credit Life, Savings and Investment Solutions, and Health Coverage plans. Supported by its agency-led distribution model, the Company has expanded its footprint to 68 branches across Pakistan, strengthening its market reach and customer accessibility.

The major stake (~83.5%) of the Company is held by Adamjee Insurance Company Limited, while ~1.44% is held by associated companies. Modaraba holds ~2.63% stake. The remaining stake is held by the general public (~2.49%) and others (~9.93%).

Ownership of the Company seems to remain stable as the majority of the stake is held by Adamjee Insurance.

The Sponsors possess robust expertise and a diversified business portfolio offering substantial support to the Company.

The Company gathers its financial strengths from the Group, if needs be.

The overall control of the Company lies with a eight member Board (Board). Five members, including one female Director, are Non-Executive Directors, while there are two Independent Directors and one Executive Director. Two of the Board members represent the Mansha family.

Mr. Umer Mansha – Chairperson & Non-Executive Director has Over 21 years of experience in corporate leadership and governance; Chief Executive of Nishat Mills Limited and director on several prominent corporate boards. Mrs. Naz Mansha – Non-Executive Director possesses over 33 years of experience in business management and corporate governance, with extensive exposure to the retail, textile, and real estate sectors. Mr. Muhammad Ali Zeb – Non-Executive Director is a seasoned finance professional with over 26 years of experience across the manufacturing, financial services, and insurance sectors; a Fellow Member of ICAP. Mr. Imran Maqbool – Non-Executive Director brings more than 30 years of diversified banking experience, including leadership roles at MCB Bank, Bank of America, and Citi Bank. Mr. S. M. Jawed – Non-Executive Director has over three decades of experience in industrial operations, manufacturing, and exports, with recognized contributions to Pakistan’s export sector. Mr. Ismail Arif Rafi – Independent Director possesses over 27 years of experience across the textile, consumer goods, and asset management sectors and currently serves as CEO of I&H Services. Mr. Fahad Iqbal – Independent Director brings over 20 years of experience in the automotive, engineering, and agriculture sectors and currently serves as Group CEO of Ravi Global.

During CY25, the Board met five times and was supported by three Board-level committees, all chaired by Non-Executive Directors. These include: (i) Investment Committee, (ii) Audit Committee, and (iii) Ethics, Human Resource, Remuneration & Nomination Committee. The committees assist the Board in overseeing key operational, risk management, governance, investment, and human resource matters, and generally convene on a quarterly basis.

The external auditors, Riaz Ahmad & Company, Chartered Accountants, issued an unqualified audit opinion on the Company's financial statements for CY25. The audit firm maintains a satisfactory quality control rating and is included in the State Bank of Pakistan's panel of auditors under Category 'A'.

The Company operates through Sales and Marketing, HR, Window Takaful, Legal Services, Investment, Risk Management, IT, Compliance & Claims, Actuarial Services, and Finance. All the Heads report to the CEO, who then reports to the Board. However, the Head of Internal Audit, Investment, and HR functionally reports to the respective Board committee and administratively to the CEO.

Mr. Manzar Mushtaq – Chief Executive Officer is a seasoned financial services professional with over 19 years of leadership experience across the insurance and financial sectors. An alumnus of Clark University, USA, he has held several senior management positions, including Managing Director/CEO of Adamjee Insurance Company Limited and Chief Executive Officer of Habib Metropolitan Financial Services Limited. His extensive industry expertise provides strategic direction to the Company's operations and growth initiatives. Mr. Jalal Meghani – Executive Director & Chief Financial Officer is a Fellow Member of the Institute of Chartered Accountants of Pakistan (FCA) and the Institute of Chartered Secretaries and Managers (FICS). He possesses over 30 years of experience in financial management, strategic planning, and organizational development across diverse sectors, including nearly two decades with Adamjee Life. His professional experience also includes senior management assignments in Sri Lanka and East Africa, enhancing his regional and international exposure.

The management structure is supported by three operational committees: (i) Underwriting, Reinsurance & Co-insurance Committee, (ii) Claims Settlement Committee, and (iii) Risk Management & Compliance Committee. These committees facilitate effective decision-making and oversight across key operational and risk functions. All committees meet on a quarterly basis, and minutes of meetings are adequately maintained.

The Company has an automated claims management system. The manual identifies the claims requirements under different policies. The items are clearly outlined, and in case of irregularities, alternate requirements and powers of individuals have been stated. The manual covers all eventualities and processes to be followed to tackle them.

The Company has outsourced its investment management function to MCB funds and maintains a comprehensive, well-documented IPS, documenting clearly defined investment rules, trading, and broker selection. The executive investment committee makes investment decisions as per IPS.

The risk management manual has been developed by the Company. It contains guidelines for handling the general reassurance treaties, along with policies and procedures to handle the facultative reassurance, allocation, and validation, in addition to management and control.

The life insurance sector in Pakistan recorded Gross Premium Written (GPW) of PKR ~496.9bn in CY25, up ~13.8% YoY, driven by strong growth across both public and private segments. The public segment remained dominant with a ~58.6% share (PKR ~291.2bn, +8.8% YoY), while the private segment outpaced growth at ~21.7% YoY to PKR ~205.7bn, increasing its share to ~41.4%. Despite sustained expansion, the sector remains underpenetrated versus regional peers, though growth is supported by improving macroeconomic conditions, rising bancassurance penetration, and regulatory reforms including IFRS 17 and risk-based capital framework enhancements. The premium mix continued to shift toward quality, with individual regular premiums rising to ~52.8% (CY24: ~47.7%) amid lower inflation and improved purchasing power, while group business moderated to ~38.1% and single premiums declined to ~9.1%. On the claims side, gross claims increased ~7.3% to PKR ~412.7bn, with a decline in surrender claims to ~40.5% reflecting improved retention, while maturity and death claims increased with a growing in-force portfolio. The sector’s investment portfolio remains predominantly concentrated in government securities, mainly Treasury Bills, Pakistan Investment Bonds (PIBs), and Sukuks. This allocation reflects a regulatory-driven and risk-averse investment strategy focused on capital preservation, liquidity management, and stable long-term returns. Sector profitability remained broadly stable at PKR ~23.7bn (-0.8% YoY), as strong premium growth was offset by a ~13.5% decline in investment income due to monetary easing and a sharp reduction in policy rates.  (Source: PACRA Sector Study)

During CY25, the Company is classified as a mid-sized player with a market share of ~7.3% (CY24: ~7.1%)

During CY25, Adamjee Life demonstrated a notable improvement in its persistency profile. First-year persistency strengthened to ~78% (CY24: ~74%), reflecting the Company's enhanced focus on policyholder engagement and quality-driven sales practices across its distribution channels. Renewal persistency also trended upward during the year and clocked in at ~79% (CY24: ~77%), underpinned by the Company's continued efforts to retain its existing policyholder base through flexible product offerings and proactive customer service. The improvement in persistency reinforces the Company's ability to sustain premium inflows and manage lapses, which is a positive indicator for long-term business viability.

During CY25, Adamjee Life recorded GPW of ~PKR 36.4bln (CY24: ~PKR 31bln), reflecting growth of ~17.6% year-on-year. Revenue generation continued to be supported by both conventional and Takaful plans, with single premium individual policies remaining the dominant contributor at ~PKR 20.8bln (CY24: ~PKR 17.1bln), registering growth of ~22%. First-year regular premiums increased to ~PKR 4.0bln (CY24: ~PKR 2.8bln), while second-year renewal premiums grew to ~PKR 2.2bln (CY24: ~PKR 2.1bln), and subsequent-year renewal premiums remained stable at ~PKR 8.0bln same as last year, reflecting a sustained in-force base. Group premiums without cash value posted modest growth to ~PKR 1.4bln (CY24: ~PKR 1.1bln). Net insurance premium after reinsurance ceded stood at ~PKR 35.4bln (CY24: ~PKR 30.3bln), reflecting an uptick of ~17%. Going forward, revenue momentum is expected to be sustained by the Company's ongoing expansion across its bancassurance and direct distribution channels.

During CY25, Adamjee Life's profitability moderated slightly, though the bottom line remained positive. The Company reported an underwriting loss of ~PKR 0.5bln (CY24: profit of ~PKR 2.5bln), driven by higher net claims expense of ~PKR 32.1bln (CY24: ~PKR 24.3bln) amid rising surrender and maturity payouts. Net acquisition costs increased to ~PKR 3.8bln (CY24: ~PKR 3.4bln) and management expenses rose to ~PKR 1.5bln (CY24: ~PKR 1.3bln), further pressuring underwriting results. Investment income declined reflecting lower fair value gains on the investment book, partially offset by stable returns on government securities. The change in reserve for policyholders' liabilities moderated to ~PKR 16.8bln (CY24: ~PKR 25.3bln), providing relative relief to the income statement. Consequently, profit before tax stood at ~PKR 2.1bln (CY24: ~PKR 2.5bln), while profit after tax amounted to ~PKR 1.3bln (CY24: ~PKR 1.6bln). Going forward, sustained investment income and disciplined expense management will be critical to maintaining profitability.

During CY25, Adamjee Life maintained a growing investment book, with total investments reported at ~PKR 131.1bln (CY24: ~PKR 113.2bln), reflecting year-on-year growth of ~15.8%. The portfolio remains heavily concentrated in government securities at ~PKR 92.8bln (CY24: ~PKR 79.6bln), comprising Pakistan Investment Bonds at ~PKR 43.9bln, GOP Ijara Sukuks at ~PKR 10.2bln and Treasury Bills at ~PKR 38.7bln, providing stable and predictable income. Equity Securities stood at ~PKR 13.2bln (CY24: ~PKR 11.7bln), and Debt Securities & Mutual Funds at ~PKR 12.6bln (CY24: ~PKR 11bln). Total investment income for CY25 amounted to ~PKR 20.5bln (CY24: ~PKR 26bln), with the decline attributable primarily to lower surplus on revaluation of investments at ~PKR 8.5bln (CY24: ~PKR 11bln), while returns on government securities of ~PKR 10.1bln and dividend income of ~PKR 1.4bln remained key recurring contributors. Effective investment book management remains essential to yielding consistent income going forward.

Adamjee Life continues to pursue a multi-channel distribution strategy to expand its market presence and deepen penetration. The Company operates across two primary channels — bancassurance and a direct distribution sales force — catering to a broad and diversified customer base. Its product suite spans both conventional and Window Takaful offerings, enabling the Company to address the growing demand for Shariah-compliant solutions. Ongoing plans to expand the branch network and strengthen the direct sales force are expected to support new business volumes. The Company's digital transformation agenda and continued investment in customer experience are expected to enhance operational efficiency and competitiveness over the medium term.

During CY25, Adamjee Life's net claims expense increased to ~PKR 32.1bln (CY24: ~PKR 24.4bln), reflecting a rise of ~32%, driven by higher surrender-related payouts of ~PKR 19.4bln (CY24: ~PKR 14.3bln) as policyholders continued to encash policies amid challenging economic conditions. Maturity claims also rose to ~PKR 11.7bln (CY24: ~PKR 9.2bln), consistent with the maturing profile of the in-force portfolio, while death benefits stood at ~PKR 1.8bln (CY24: ~PKR 1.3bln). Consequently, outstanding claims increased to ~PKR 6.0bln as of CY25 (CY24: ~PKR 4.9bln), reflecting the growing scale of the business. The rising claims burden, particularly surrender-related outflows, remains an area requiring close monitoring. 

Adamjee Life maintains reinsurance arrangements with multiple highly-rated counterparties, including HannoverRE (rated 'A+' by A.M. Best and 'AA-' by S&P), Munich RE (rated 'A+' by A.M. Best and 'AA' by S&P), Swiss RE (rated 'A+' by A.M. Best and 'AA-' by S&P), and HCC Tokio Marine (rated 'A++' by A.M. Best and 'A+' by S&P). The Company's reinsurance program is designed to cap large individual risk exposures while retaining a significant portion of premium income. Net reinsurance premiums ceded amounted to~PKR 983mln in CY25 (CY24: ~PKR 684mln), with all reinsurance assets held with counterparties rated 'A' or above, ensuring minimal credit risk exposure on the reinsurance book.

During CY25, Adamjee Life's liquidity position remained adequate, with the investment portfolio predominantly anchored in liquid government securities. Liquid investments — comprising government securities and cash and bank balances — stood at ~PKR 99.2bln (CY24: ~PKR 85.8bln). Liquid investments to outstanding claims coverage moderated to ~20.6x (CY24: ~22.1x), reflecting faster growth in outstanding claims relative to the liquid asset base, though the absolute coverage remains comfortable. The Company's liquidity framework is further supported by regular premium receipts across its bancassurance and direct distribution channels.

As of CY25, shareholders' equity increased to ~PKR 6.3bln (CY24: ~PKR 5.4bln), reflecting a year-on-year increase of ~16.6%, driven by profit retention and an increase in revenue reserves. Paid-up share capital increased to ~PKR 2.6bln (CY24: ~PKR 2.5bln) following the issuance of bonus shares, while unappropriated profit grew to ~PKR 1.6bln (CY24: ~PKR 1.0bln). The strengthened equity base provides enhanced capacity to support the Company's growing policyholder liabilities and underpins its ongoing business expansion. No cash dividend was declared during CY25 (CY24: PKR 500mln), as profits were retained to support capital growth. Going forward, continued profitability and retention of earnings are expected to maintain the Company on a sound capital trajectory.