Transmission of Quarterly Report for the Period Ended June 30, 2025

Director's Review, 30 June 2025

The Directors of your Company are pleased to present the Condensed Interim Financial Statements (Unaudited) for the half year ended 30thJune 2025.

Performance Review

Your Company's gross premium income was Rs. 26.23 billion during the six months of 2025 (2024: Rs. 18.22 billion), an increase of 43.9%. New individual life regular premium (including Takaful contribution) income was Rs. 2.8 billion (2024: Rs. 2.07 billion), increasing by 35.9%. Renewal premium was Rs. 12.25 billion (2024: Rs. 12 billion). Inclusive of renewal premium, the total individual life regular premium was Rs. 15.05 billion (2024: Rs. 14.07 billion). Single premium business was Rs. 1.14 billion (2024: Rs. 582 million), an increase of 96.3%. Corporate Benefits Life business increased by 66.6% and was Rs. 5.51 billion (2024: Rs. 3.31 billion).

Your Company commenced its health insurance business by 100% acquisition of EFU Health Insurance Limited and subsequent complete amalgamation of EFU Health into EFU Life in 2024. The financial statements, for comparative purposes, reflect the commencement of Health business effective 1stMay 2024. For the half year of 2025, the total health premium (Individual and Corporate) was Rs. 4.84 billion.

Your Company's total family takaful contribution (including health) was Rs. 5.89 billion (2024: Rs. 4.30 billion), a growth of 36.9%. Out of this, Rs. 4.53 billion (2024: Rs. 3.59 billion) was from Individual Family Takaful business (a growth of 26.2%), Rs. 563 million (2024: Rs. 645 million) was from Corporate Family Takaful and Rs. 798 million was from Health business.

Your Company had a Profit before Tax of Rs 1.96 billion (2024: 2.59 billion). Profit after Tax stands at Rs. 1.22 billion (2024: Rs. 1.56 billion). The Earnings per Share is Rs. 11.59 (2024: Rs. 15.18).

Interim Dividend:

The Directors have pleasure in declaring an Interim Dividend of Rs. 1.5 per share. i.e. 15%.

Outlook

While recovery in the broader economy is underway, the impact of reduced customer purchasing power from recent inflation continues to weigh on insurance demand. Despite these challenges, industry prospects remain positive, supported by rising financial literacy among youth, broader distribution reach, simpler and more inclusive products, and a largely untapped working population. Both the Government and regulators recognize the sector's importance as a national safety net and are actively promoting its expansion. Regulatory emphasis on Shariah-compliant offerings is expected to drive strong growth in the Takaful segment. With the right strategic focus, the industry and your Company are well positioned for steady, longterm growth.

Acknowledgement

We would like to thank our valued customers for their continued patronage and to the Securities and Exchange Commission of Pakistan for their guidance, and our main reinsurers, Hannover Re, Munich Re and Swiss Re for their support. Your Directors would also like to place on record their deep appreciation for the management team and all members of the organization who have contributed to the development, growth, and continued success of the Company.

Director

Director

Chairman

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KPMG Taseer Hadi & Co. Chartered Accountants

Sheikh Sultan Trust Building No. 2, Beaumont Road Karachi 75530 Pakistan

+92 (21) 37131900, Fax +92 (21) 35685095

We have reviewed the accompanying condensed interim statement of financial position of EFU Life Assurance Limited (the Company) as at 30 June 2025 and the related condensed interim statement of profit and loss account, condensed interim statement of comprehensive income, condensed interim cash flow statement, condensed interim statement of changes in equity and notes to the condensed interim financial statements for the six-month period then ended (here-in-after referred to as "condensed interim financial statements"). Management is responsible for the preparation and presentation of this condensed interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim financial statements based on our review.

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of condensed interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements is not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for the interim financial reporting.

Emphasis of Matter

We draw attention to note 18.2 to the condensed interim financial statements, which describes that the Company along with other insurance companies have challenged the scope and applicability of provincial sales tax on services on premium received from insurance business in provincial High Courts.

KPf•4G Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG global organization of independent member firms

KPMG Taseer Hadi & Co.

Except for the stay against sales tax on health insurance business, the Honorable Sindh High Court has dismissed the case with a direction to reapproach Sindh Revenue Board on the matter of taxability of life insurance. The Company along with other insurance companies through Insurance Association of Pakistan has filed a constitutional petition in the Honorable Supreme Court of Pakistan. The hearing is yet to be scheduled.

Furthermore, the liability relating to sales tax amounting to Rs. 7,872.80 million has not been recognized in the condensed interim financial statements as the management along with its legal counsel are confident that the final outcome will be in favor of the Company.

Our conclusion is not modified in respect of the above matter.

Pursuant to the requirement of Section 237 (1) (b) of the Companies Act, 2017, only cumulative figures for the half year, presented in the second quarter accounts are subject to a limited scope review by the statutory auditors of the Company. Accordingly, the figures of the condensed interim statement of profit and loss account and condensed interim statement of comprehensive income for the three months period ended 30 June 2025 have not been reviewed us.

The engagement partner on the review resulting in this independent auditor's review report is Muhammad Taufiq.

KPMG Taseer Hadi & Co.

l1-

EFU LIFE ASSURANCE LIMITED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2025

30 June

2025

31 December

2024

�

L

L

l -. L L L

I

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Assets

Property and equipment Right of use assets Intangible assets Investments

E'quity securities Government securities Debt securities

Term deposits Mutual funds

Insurance / reinsurance receivables Other loans and receivables Taxation - payments less provision Prepayments

Cash and bank Total Assets

Equity and Liabilities

Authorized share capital

[150,000,000 ordinary shares (2024: 150,000,000) of Rs.10 each]

Ordinary share capital

[105,000,000 ordinary shares (2024: 105,000,000) of Rs.10 each] Share premium

Retained earnings arising from business other than participating business

Note 7

8

9

10

11

12

- 13

14

15

(Un-audited) (Audited) Restated

-- (Rupees In '000) --

2,858,954 2,941,307

798,029 509,204

271,644 325,155

47,347,651 43,771,210

185,713,754 184,510,229

7,425,016 7,608,928

332,429 347,429

8,500,156 6,683,483

2,482,428 1,391,466

5,348,910 4,370,849

1,395,598 1,159,523

198,199 148,146

6,526,749 5,669,618

269,199,517 259,436,547

1,500,000 1,500,000

1,050,000 1,050,000

636,323 636,323

L VU/The annexed notes 1 to 36 form an Integral part of these condensed interim financial statements.

L

Managing Director & Chief Executive Officer

'1A

Director

Director Chairman

EFU LIFE ASSURANCE LIMITED

CONDENSED INTERIM STATEMENT OF PROFIT AND LOSS ACCOUNT (UN-AUDITED) FOR THE PERIOD ENDED 30 JUNE 2025

Six Months Period Ended 30 Three Months Period Ended June 30 June

25

r L

L

The annexed notes 1 to 36 form an integral part of these condensed interim financial statements. Note:

Profit before tax Is inclusive of the amount of the profit before tax of the shareholders' fund, the surplus transfer from the revenue account of the statutory funds to the shareholders' fund based on the advice of the appointed actuary, and the undistributed surplus in the revenue account of the statutory funds which also includes the solvency margins maintained in accordance with the Insurance Rules, 2017. For details of the surplus transfer from the revenue account of the statutory funds to the shareholders' fund aggregating to Rs. 2,060.4 million (2024: Rs.1,792.7 million), please refer to note 32, relating to segmental information - revenue account by statutory fund.

Director

Director

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Chairman

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Managing Director & Chief Executive Officer

L L

EFU LIFE ASSURANCE LIMITED

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME {UN�AUDITED) FOR THE PERIOD ENDED 30 JUNE 2025

t

Profit after tax for the period

Other comprehensive income:

1

Items that may be reclassified to statement ofprofit and loss account in subsequent periods:

L

Change in unrealised (loss)/ gains-on available-for-sale investments

Reclassification adjustment relating to available-for-sale

L investments sold during the year

L

Six Months Period Ended 30 Three Months Period Ended June 30 June

2025 2024 2025 2024

Restated Restated

(Rupees In '000)

1,216,814 1,555,787 575,245 774,921

[J(13,046) [J19,317 [J53,533 [J{5,720)

(7,995)

L The annexed notes 1 to 36 form an integral part of these condensed interim financial statements.

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I

Managing Director & Chief Executive Officer

Director Chairman

l!FU LIFE ASSURANCI! LIMITl!D

CONDl!NSl!D INTERIM CASH FLOW STATEMENT (UN-AUDITl!D) FOR THE PERIOD ENDED 30 JUNE 2025

Operating cash flows

1. Underwriting activities

   Insurance premium / contribution received Reinsurance premium / retakaful contribution paid Claims paid

   Commission paid

   Marketing and administrative expenses paid Other acquisition cost paid

   Net cash oµtflow from underwriting activities

2. Other operating activities Income tax paid

Other operating payments Loans advanced

Loans repayments received

L

Net cash outflow from other operating activities Total cash outflow from all operating activities

Investment activities Profit / return received Dividends received

Payments for Investments

(. Proceeds from disposal of Investments Fixed capital expenditure

Proceeds from sale of property and equipment

• Total cash Inflow from all Investing activities

Financing activities

[ Dividends paid

Payment against lease liability

Total cash outflow from all financing activities Net cash Inflow/ (outflow) from all activities

Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period

L Reconclllatlon to statement of profit and loss account Operating cash flows

Depreciation expense Depreciation on right of use assets Amortization expense

l

Profit on disposal of property and equipment Other revenue

L

Profit on tease termination Finance cost on lease liabilities Profit on disposal of investments Dividend income

Other Investment Income

Depreciation In market value of Investments

Provision of impairment In the value of available for sale equity Investments (Decrease) / Increase In assets other than cash

Increase in liabilities

• Profit after tax for the period

L The annexed notes 1 to 36 form an Integral part of these conden ·nterim financial statements.

30June 30 June

2025 2024

Note --·· (Rupee� In '000) ----·

Managing Director & Chief Executive Officer

Chief Director

Director Chairman

l!FU LIFI! ASSURANCE LIMITl!D

CONDENSED INTERIM STAT.l!MENT OF CHANGES IN EQUITY FOR THE PERIOD l!NDED 30 JUNI! 2025

Attributable to the equity holders' of the Company

Share capita!

Share Premium

General reserves

Retained eamlngs arising from business other than participating business attributable to shareholders (ledger account D)

- net of tax*

Surplus on revaluation of avallable for sale Investments net of tax

Unappropriated Total profit

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4

1

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1

21

1

2

77

1

s

_. __:....:·_:__:...

_. __

- ...l....._

-. -

-

·· . Contribution to Increase solvency margin 197,706 (197,706)

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170,000

11050,000

l □□

(1 46. 1 8)

� - _ _ �- - _, Q

(.

L First Interim Dividend@ Rs. 1.5 per share

□□□

-- (146,318)

(7,995)

DD

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(1,260,000) ........... .....- .....

Balance as at 30June 2026 (Un-audited) 1,050,000 636,323 2,120·;000 3,899,432 128,921 703,886 9,138,561

'This include balances maintained In accordance with the requirements of section 35 of the Insurance Ordinance, 2000 read with rule 14 of the Insurance Rules, 2017 to r:r;e,�t solvency margins, which are mandatorily maintained for the carrying on of the life insurance business.

. The annexed notes 1 to 36 fom, an ntegral part of these condensed interim financial statements.

L

Managing Director & Chief Executive Officer

Director Director Chairman

EFU LIPE ASSURANCE LIMITED NOTES TO AND FORMING PART OF

THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED) FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2025

1. LEGAL STATUS AND NATURE OF BUSINESS

   1. EFU Life Assurance Limited (the Company) was incorporated in Pakistan on 09 August 1992 as a public limited company under the Repealed Companies Ordinance, 1984 (now Companies Act, 2017) and started its operation from 18 November 1992. The shares of the Company are quoted on Pakistan Stock Exchange. The registered office of the Company is located at Al-Malik Centre, 70W, F-7/ G-7 Jinnah Avenue, Islamabad while principal place of business is located at EFU Life House, Plot No.112, 8th East street, Phase 1, DHA, Karachi.

   2. The Company is a subsidiary of EFU General Insurance Limited on the basis of its ability to control the composition of the Board of Directors of EFU Life Assurance Limited effective from 31 March 2018.

   3. The Company is engaged in life insurance business including ordinary life business, pension fund business and accident and health business and has established following statutory funds, as required by the Insurance Ordinance, 2000:

      Investment Linked Business (includes individual life business) Conventional Business (includes group life and individual life businesses) Pension Business (unit linked)*

      • Accident and Health Business

        Family Takaful Investment Linked Business (Refer note 1.4) Family Takaful Protection Business (Refer note 1.4)

        Family Takaful Accidental and Health Business

      • Participating business

      "The Company had discontinued pension business and accordingly no new business has been written under this fund.

   4. The Company was granted authorisation on 19 January 2015 under Rule 6 of the Takaful Rules, 2012 to undertake Window Takaful Operation in respect of family takaful products by Securities and Exchange Commission of Pakistan (SECP) and subsequently the Company commenced Window Takaful Operations on 6 February 2015 under the brand name "Hemayah". For the purpose of carrying on takaful business, the Company has formed a Waqf namely EFU Life -Window Family Takaful Limited Waqf (here-in-after referred to as the Participant Takaful Fund (PTF)) on 6 February 2015 under a Waqf deed executed by the Company with a cede amount of Rs. 2 million. The cede money is required to be invested in shariah compliant investments and any profit thereon can be utilized only to pay benefits to participants or defray PTF expenses. Waqf deed also governs the relationship of the Company and policyholders for the management of Takaful operations, investment of policyholders' funds and shareholders' fund as approved by the shariah advisor appointed by the Company.

   5. Merger of EFU Health Insurance Limited
      1. Business Combination of EFUL

         The Board of directors of the Company in their Board Meeting held on 28 September 2023 and subsequently in EOGM held on 23 October 2023 approved the acquisition of 100% shares of EFU Health Insurance Limited against issuance of 5 million ordinary shares of face value Rs. 10/- each without rights of the Company to EFU Services (Private) Limited and sponsors of EFU Health Insurance Limited under Share Subscription and Purchase Agreement in satisfaction of the consideration equal to Rs. 500,000,000 at a SWAP ratio of 1 ordinary share of the Company against every 10 ordinary shares of EFU Health Insurance Limited.

         On 01 April 2024, pursuant to the approvals of the Board and after obtaining all the requisite corporate and regulatory approvals and compliance with all the applicable laws and regulation, the Company has acquired 100 % i.e., 50 million ordinary voting shares and control of EFU Health Insurance Limited from sponsors and other shareholders of EFU Health Insurance Limited through Share Purchase Agreement (SPA).

         On 15 April 2024, the Board of directors of the Company approved merger of EFU Health Insurance limited (a fully owned subsidiary) with the Company through scheme of amalgamation under section 284 of the Companies Act 2017. The effective date of merger was set on 01 May 2024 in the said scheme of amalgamation.

         The Company acquired the control over EFUH through Share Swap Arrangement in the year 2024:

         Date of

         acquisition

         Proportion

         Number of of voting

         shares equity

         acquired interest

         acquired

         Acquired through Share Swap Arrangements

      2. Business Combination of EFUL

         April 1, 2024 0 000 000 100 00/

         50,000,000 100.00°/«

         On April 01, 2024, the Company obtained control of EFUH by holding 100% of the total shareholding of EFUH. Therefore, the effective date of business combination is considered to be April 01, 2024.

      3. Consideration transferred

         Value per share of the Company as per the SPA was determined at Rs 137.26 per share.

         Total number of shares issued (Number in '000) Value per share

         Total value of consideration transferred (Rupees in '000)

         5,000

         137.26

         686,323

         The values used for the computation of SPA were not materially different from the fair value of assets and liabilities.

      4. Fair Value of previously held interest

         IFRS 3 requires that in a business combination achieved in stages, the acquirer shall remeasure its previously held equity interest in the acquiree at its acquisition date fair value and recognise the resulting gain or loss in statement of profit and loss.

         There was no previously held equity interest in EFUH.

      5. Fair value of net identifiable assets acquired under business combination

         International Financial Reporting Standard 3, (IFRS 3) "Business Combinations", requires that all identified assets and liabilities acquired in a business combination should be carried at fair values in the acquirer's balance sheet and any intangible assets acquired in the business combination are required to be separately recognised and carried at fair values.

         IFRS 3 allows the acquirer a maximum period of one year from the date of acquisition to finalize the accounting for business combination. Identified assets acquired, liabilities assumed or incurred have been carried at the fair value as at the acquisition date. The fair valuation exercise will be completed within the period of one year as allowed under IFRS 3. Any adjustment arising at the time of finalization of this exercise will be incorporated with retrospective effect from the date of acquisition. In the financial statements for the year ended 31 December 2024, the EFUL had recorded the net assets of the Business Combination on provisional values which have been finalised in the current period.

         Financial statements that were used for the purpose of carrying out fair valuation exercise as at 30 April 2024 were separate financial statements of EFUH.

         
         
         

         The fair values and carrying amounts of net identifiable assets acquired are as follows:

         Carrying Fair Value Amounts adjustments

         Fair Values

         ---------- ----- (Rupees in '000) ----------------

         Property and equipment		109,869	101,820		211,689
         Intangible assets		1,627	37,376		39,003
         Investments		1,204,818	-		1,204,818
         Loans and other receivables		116,801	-		116,801
         Insurance / reinsurance receivables		901,377	-		901,377
         Reinsurance recoveries against outstanding claims		115,081	-		115,081
         Deferred taxation
         Taxation - payment less provision		22,086	-		22,086
         Prepayments		761,339	-		761,339
         Cash and bank		913,031	-		913,031
         Total Assets		4,146,029	139,196		4,285,225
         Insurance Liabilities		2,972,421	-		2,972,421
         Premium received in advance		84,743			84,743
         	Deferred taxation	(7,099)		39,710		32,611
         	Insurance / reinsurance payables	289,138		-		289,138
         	Other creditors and accruals	220,563		-		220,563
         	Total Liabilities	3,559,766		39,710		3,599,476
         	Net Assets	586,263		99,486		685,749
         						(Rupees in
         1.5.6	Goodwill on acquisition:					'000)
         	Consideration transferred					686,323

         Less: Fair value of net identifiable assets acquired as at acquisition date Goodwill on business combination

         (685,749)

         574

         Net Assets Acquired	Valuation Technique
         Property and equipment	The valuation experts used a market based approach to arrive at the fair value of the Company's property and equipment. The market approach used prices and other relevant information generated by market transactions involving identical, comparable or similar assets.
         Intangible assets	The multiple-period excess earnings method considers the present value of net cash flows expected to be generated by the customer relationship, by excluding any cash flows related to contributory assets.
         Deferred tax liabilities	Deferred tax liabilities arising from the assets acquired and liabilities assumed in the acquisition of EFUH have been recognised in accordance with IAS 12 'Income Taxes'. The EFUL has accounted for the potential tax effects of temporary differences that exist at the acquisition date or arose as a result of the acquisition in accordance with IAS 12.

         
         
         

         Carrying amounts of all the below mentioned assets and liabilities are equal to their fair value:

         Cash and bank's fair value is considered equal to its carrying amount due to their highly liquid nature and short-term maturity.

         Investments other than those fully impaired are either valued at "Available for Sales" or "Held to Maturity".

         Carrying amounts of other assets other than property and equipment and Investments are considered equal to their fair values due to the realisability of associated economic benefits being short term or equal to their carrying amounts.

         1.5.7 Effect of retrospective adjustments made due to finalization of fair valuation exercise

         31 December 2024(Audited)

         As

         previously Adjustment Restated reported

         Statement of Financial Position

         ----------------(Rupees in '000)----

         Intangible assets - Customer Relationship	64,034	32,979	97,013
         Intangible assets - Goodwill	68,352	(37,376)	30,976
         Taxation - payments less provision	1,157,808	1,715	1,159,523
         Unappropriated profit	(1,537,194)	2,682	(1,534,512)
         Statement of Profit and Loss Account Six months period ended 30 June 2024:

         As

         previously Adjustment Restated reported

         - (Rupees in '000)-

         Marketing and administration expenses	(2,064,736)	(1,099)	(2,065,835)
         Gain on bargain purchase of net assets	164,959	(164,959)
         Loss on remeasurement of investment in EFUH	(166,537)	166,537
         Income Tax Expense	(1,033,334)	(187)	(1,033,521)

         Earnings per share - basic and diluted

         Three months period ended 30 June 2024:

         - (Rupees)

         15.175 0.003 15.178

         As

         previously Adjustment Restated reported

         - (Rupees in '000)

         Marketing and administration expenses	(1,133,059)	(1,099)	(1,134,158)
         Gain on bargain purchase of net assets	164,959	(164,959)
         Loss on remeasurement of investment in EFUH	(166,537)	166,537
         Income Tax Expense	(540,223)	(187)	(540,410)

         Earnings per share - basic and diluted

         ----(Rupees)---

         7.557 0.003 7.560

         The above adjustment has no impact on total operating, investing or financing cashflow for the period ended 30 June 2024.

         �

         
         
         

2. BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE

   1. These condensed interim financial statements have been prepared on the format of financial statements issued by the Securities and Exchange Commission of Pakistan (SECP) through the Insurance Rules, 2017 vide its S.R.O. 89(1) / 2017 dated 09 February 2017.

   2. These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan. The accounting and reporting standards comprise of:

      International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017 (the Act);

      Provisions of and directives issued under the Act, Insurance Ordinance, 2000, Insurance Rules, 2017, Insurance Accounting Regulations, 2017 and Takaful Rules, 2012; and

      Islamic Financial Accounting Standards (IFAS) (as a lease) issued by the Institute of Chartered Accountants of Pakistan, as are notified under the Act.

      In case the requirements differ, the provisions or directives of the Act, the Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012 shall prevail.

   3. These condensed interim financial statements do not include all the information required for annual financial statements and should be read in conjunction with the annual audited financial statements of the Company for the year ended 31 December 2024.

   4. The comparative condensed interim statement of financial position presented in these condensed interim financial statements has been extracted from the annual audited financial statements of the Company for the year ended 31 December 2024, whereas the comparative condensed interim statement of profit and loss account, condensed interim statement of comprehensive income, condensed interim cashflow statement and condensed interim statement of changes in equity are extracted from the unaudited condensed interim financial statements for the period ended 30 June 2024.

   5. These condensed interim financial statements are un-audited and are being submitted to the shareholders as required by listing regulations of Pakistan Stock Exchange and section 237 of the Act.

   6. Basis of measurement

      These condensed interim financial statements have been prepared under the historical cost convention, except as disclosed in material accounting policy information relating to certain investments, lease liabilities and insurance liabilities.

   7. Functional and presentation currency

      These condensed interim financial statements are presented in Pakistani Rupees, which is the Company's functional and presentation currency. All financial information presented in Pakistani Rupees has been rounded to the nearest thousand unless otherwise stated.

3. STANDARDS, INTERPRETATIONS AND AMENDMENTS TO PUBLISHED APPROVED ACCOUNTING STANDARDS

   1. Standard, interpretations and amendments that are effective in the current period

      There are certain amendments to the published accounting and reporting standards that are mandatory for the Company's accounting periods beginning on or after 01 January 2025. However, these do not have any significant impact on the Company's financial reporting and, therefore, have not been detailed in these condensed interim financial statements.

   2. Standard, interpretations and amendments that are not yet effective

      The following standards, amendments and interpretations of the accounting and reporting standards as applicable in Pakistan will be effective for accounting periods beginning on or after 01 July 2025:

      Standard, Interpretation or Amendment

      Lack of exchangeability - Amendments to IAS 21

      Amendments to the classification and measurement of financial instruments - Amendments to IFRS 9 financial instruments IFRS 7

      Annual Improvements to IFRS Accounting Standards - Amendments to:

      • IFRS 1 First-time Adoption of International Financial Reporting Standards;

      • IFRS 7 Financial Instruments: Disclosures and it's accompanying Guidance on implementing IFRS 7;

      • IFRS 9 Financial Instruments

      • IFRS 10 Consolidated Financial Statements; and

      • IAS 7 Statement of Cash flows

      Effective date (period beginning on or after)

      01 January 2025

      01 January 2026

      01 January 2026

      01 January 2026

      01 January 2026

      01 January 2026

      01 January 2026

      The above standards, interpretations and amendments are not likely to have a significant impact on these condensed interim financial statements.

   3. Applicability of IFRS 17 and IFRS 9

      Pursuant to the requirements of Securities and Exchange Commission of Pakistan (SECP) SRO 1715 (I) / 2023 dated 21 November 2023 IFRS 17 "Insurance Contracts", was applicable to the companies engaged in insurance / takaful and re-insurance / re-takaful business from financial years commencing on or after 01 January 2026. Subsequently, SECP through SRO 1336(I) / 2025 dated 23 July 2025 has extended the applicability of IFRS 17 to 01 January 2027.

      Accordingly, in continuation to the extension of IFRS 17 applicablility via SRO 1336(I) / 2025, SECP vide letter no. ID/MDPRD/IFRS-17/2025/4146 dated 4 August 2025 has revised the submission timelines for Dry run 1 and 2 as follows:

      • Dry Run 1 for year end 2024 - Long Form Report due by 31 December 2025

      • Audited Financial Statements for Dry Run 1 for financial year 2024 - due by 31 May 2026

      • Dry Run 2 for financial year 2025 - Long Form Report due by 30 September 2026.

      IFRS 17, replaces IFRS 4 Insurance Contracts. The new standard will apply to all entities that issue insurance and reinsurance contracts, and to all entities that hold reinsurance contracts. This standard requires entities to identify contracts and its terms and to assess whether they meet the definition of an insurance contract or includes components of an insurance contract. Insurance contracts are required to account for under the recognition / derecognition of IFRS

      17. Companies subject to the requirement of SRO 1715 (I) / 2023 will also be required to adopt requirements of IFRS-9 from the date of transition. On initial application of IFRS 17, comparative information for insurance contracts is restated in accordance with IFRS 17, whereas comparative information for related financial assets might not be restated in accordance with IFRS 9 if the insurer is initially applying IFRS 9 at the same date as IFRS 17.

      SECP through its S.R.O.506(1)/2024 has directed that the applicability period of optional temporary exemption from applying IFRS 9 Financial Instruments as given in para 20A of IFRS 4 Insurance Contracts is extended for annual periods beginning before 01 January 2026, subject to fulfilling the same conditions as are prescribed by para 20B of IFRS 4.

      1. The tables below set out the fair values as at the end of reporting period and the amount of change in the fair value during that period for the following two groups of financial assets separately:

         1. financial assets with contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest ("SPPI") on the principal amount outstanding, excluding any financial asset that meets the definition of fair value through profit and loss in IFRS 9, or that is managed and whose performance is evaluated on a fair value basis; and

         2. all other financial assets.

            
            
            

            Fair value of financial assets as at 30 June 2025 and the change in the fair values during the period ended 30 June 2025.

            As at 30 June 2025 (Un-audited)

            the SPPI test

            Other financial assets Financial assets that will pass

            Change in				Change in
            unrealised				unrealised
            Fair value (loss)/ gain			Fair value	(loss)/ gain
            during the				during the
            period				period
            ---------	-------	--- (Rupees in '000) -		--	--- '
            Financial assets
            Cash and Bank'		-	6,526,749
            Investment in Equity securities	47,347,651	2,325,979
            Investment in Government and debt securities	169,586,167	1,463,391	23,552,603	(2,948,322)
            Investment in Term deposits			332,429
            investment in Mutual funds	8,500,156	195,883
            Insurance / reinsurance receivables			2,482,428
            Other loans and receivables"			3,912,582
            	225,433,974	3,985,253	36,806,791	(2,948,322)

            * The carrying amount of these financial assets measured applying IAS 39 are a reasonable approximation of their fair values.

            Fair value of financial assets as at 31 December 2024 and the change in the fair values during the year ended 31 December 2024.

            As at 31 December 2024 (Audited)

            Other financial assets

            Financial assets that will pass the SPPI test

            Fair value

            Change in unrealised (loss) / gain during the year

            Fair value

            Change in unrealised (loss) / gain during the year

            Financial assets
            Cash and Bank*		-	5,669,618
            Investment in Equity securities	43,771,210	20,531,566
            Investment in Government and debt securities	169,528,521	2,951,899	22,590,636	188,290
            Investment in Term deposits			347,429
            Investment in Mutual funds	6,683,483	1,080,950
            Insurance / reinsurance receivables			1,391,466
            Other loans and receivables"			3,092,347
            	219,983,214	24,564,415	33,091,496	188,290

            (Rupees in '000)

            * The carrying amount of these financial assets measured applying IAS 39 are a reasonable approximation of their fair values.

            
            
            
4. MATERIAL ACCOUNTING POLICY INFORMATION

   The accounting policies adopted in the preparation of these condensed interim financial statements are consistent with those applied in the preparation of financial statements of the Company for the year ended 31 December 2024.

5. MANAGEMENT OF FINANCIAL AND INSURANCE RISK

The financial and insurance risk management objectives and policies are consistent with those disclosed in the annual audited financial statements of the Company for the year ended 31 December 2024.

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of condensed interim financial statements in conformity with approved accounting standards requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.

The judgments, estimates and assumptions are based on historical experience, current trends and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the estimates about carrying values of assets and liabilities that are not readily apparent from other sources.

Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the revision and future periods if the revision affects both current and future periods.

Chain Ladder (CL) is used to calculate IBNR Claim Reserves. Expected Loss Ratio (ELR) is used for recent quarters, with the Expected Loss Ratio determined based on an assessment of historic Incurred Claims Ratios. IBNR Claim Reserve calculations for Conventional Group Life have also been bifurcated into three business segments; Group Life, Group Credit and Digital & Inclusive in order to hold more accurate reserves for each segment.

PROPERTY AND EQUIPMENT

Operating assets

30 June 31 December

2025 2024

(Un-audited) (Audited)

-------- (Rupees in '000) --------

2,858,954 2;941307

1. RIGHT OF USE ASSETS 30 June 2025 (Un-audited)

   COSt				Accumulated Depreciation
   As at 01 January 2025	Addition	Deletion	As at 30 June 2025	As at 01 January 2025	Charge for the year	Deletion	As at 30 June 2025	Written Down Value as at 30 June 2025

   (Rupees in '000) -- (Rupees in '000)

   881,049

   _

   (64,529/

   895,505

   798,029

   
   
   

   Right of use asset 1 3 253 1 1 6 1 6 3 5

   COSt					Accumulated Depreciation
   As at 01 January 2024	Acquired through business combination	Addition	Deletion	As at 31 December 2024	As at 01 January 2024	Acquired through business combination	Charge for the year	Deletion	As at 31 December 2024	Written Down Value as at 31 December 2024

   
   
   

   31 December 2024 (Audited)

   t•upees in '000)

   (Rupoes in 'OOO)

   Right of use asset

2. INTANGIBLE ASSETS

1,258,963 73,494

184,315 (126,519) 1,390,253

690370 _ 52,717 163,383, (25,421) 881,049 509,204

30 June 2025 (Un-audited)

643 005

6 543

- 649548

317 850

60 054

- 377904 271644

31 December 2024 (Audited - Restated)

(Rupees in '000) (Rupees in '000)

Note

30 June 31 December

2025 2024

(Un-audited) (Audited) (Rupees in '000)

Balance at the beginning of the period

Provision for impairment on available for sale investments - net Balance at the end of the period

(Rupees in '000)

428,859 356,647

72,212

2 859 428,859

11 INVESTMENT IN GOVERNMENT SECURITIES

Note

30 June 31 December

2025 2024

(Un-audited) (Audited) (Rupees in '000)

Held to maturity

Fair value through profit or loss (Designated - upon initial recognition)

11.1 16,127,587 14,981,708

11.2 169,586,167 169,528,521

571 7 184,510,229

30 June 2025 (Un-audited)

31 December 2024 (Audited)

Held to maturity