PACRA Maintains IFS Rating of Adamjee Life Assurance Company Limited

The assigned rating of Adamjee Life Assurance Company Limited (the “Company”) reflects its sustained business growth, strong governance framework under the Nishat Group, and resilient financial profile. The rating incorporates the Company’s improving competitive positioning, underpinned by a well-established bancassurance franchise which continues to drive robust new business generation and scale in regular premium inflows. Furthermore, the Company’s sound underwriting discipline, adequate capitalization, and strong liquidity position—supported by a high-quality investment portfolio predominantly invested in government securities—provide comfort to its financial stability. Pakistan’s life insurance industry sustained its growth trajectory during CY25; gross premium grew by 13.8% to PKR 496.9bln (CY24: PKR 436.7bln). The operating environment reflected easing inflationary pressures and a declining interest rate cycle, which influenced both product demand and investment yields across the sector. Within this landscape, Adamjee Life strengthened its position among leading private sector players, supported by its established distribution network and strategic corporate partnerships, particularly its alliance with MCB Bank Limited.
Adamjee Life delivered a resilient financial performance during CY25 despite macroeconomic headwinds and pressure on investment yields. Gross Premium increased by 17.6% to PKR 36.4bln, driven by a 22% growth in single premium business (PKR 20.8bln) and a 43% rise in new regular premium business (PKR 4.0bln). The Company’s average return on all funds stood at 17.32%. The investment portfolio remained strong at PKR 123.5bln as of end-CY25, representing 91.7% of total assets, with significant allocation to government securities (PKR 92.8bln) and equity securities (PKR 18.1bln), ensuring liquidity support and portfolio diversification. The Company’s earnings profile remains anchored in its diversified distribution model, with bancassurance—particularly the MCB Bank partnership—serving as the primary growth driver, contributing around 55% of new regular premium business. The direct and alternate channels further supplement business growth and enhance diversification. Unit-linked policies constitute a significant portion of the portfolio, with fund and account values of PKR 116.3bln as at end-CY25, supporting fee-based income generation and improving policyholder retention.
The claims experience remained elevated during CY25, primarily driven by higher policy maturities and higher surrenders in unit-linked products amid a shifting interest rate environment, along with routine mortality and morbidity claims. Consequently, the net claims-to-net premium ratio increased compared to the previous year, broadly in line with industry trends observed across private life insurers, where surrender pressure and product mix shifts continued to affect loss ratios. Notwithstanding this, the Company maintained underwriting stability supported by adequate reinsurance arrangements and disciplined risk management practices. Profit After Tax stood at PKR 1,314mln, reflecting a 15.4% decline YoY, mainly due to lower investment income and a shift in business mix. The Company’s equity base strengthened to PKR 6.3bln, with solvency maintained comfortably above regulatory requirements, reflecting adequate capital buffers to support business growth.
The rating remains dependent on the Company’s ability to sustain business growth momentum, maintain underwriting discipline, and stabilize investment income in a changing interest rate environment, while continuing to leverage its bancassurance franchise for long-term franchise strengthening.

About the Entity
Adamjee Life, a publicly listed company, was initially incorporated as a public unlisted company in Aug-08. The Company is a subsidiary of Adamjee Insurance, with ~83.5% shareholding. The rest of the shareholding resides between associated companies, modarabas, and the general public. Mr. Umer Mansha has been appointed as the Board's Chairman effective 30-Apr-25. Mr. Manzar heads the Company as the CEO. An experienced team of professionals assists them.