HICL - Transmission of Quarterly Report for the period ended March 31 2025

Habib Insurance

Est.1942

Contents

Company Information 1

Directors' Review 2

Condensed Interim Statement of Financial Position 4

Condensed Interim Statement of Profit or Loss Account

and Comprehensive Income 5

Condensed Interim Statement of Changes in Equity 6

Condensed Interim Statement of Cash Flow 7

Notes to the Condensed Interim Financial Statements 8

Financial Statements - Window Takaful Operations

Condensed Interim Statement of Financial Position 21

Condensed Interim Statement of Comprehensive Income 22

Condensed Interim Statement of Changes in Fund 23

Condensed Interim Statement of Cash Flow 24

Notes to the Condensed Interim Financial Statements 25

Board of Directors

Chairman : Rafiq M. Habib

Directors : Mansoor G. Habib Muhammad Hyder Habib Qumail R. Habib

Aun Mohammad A. Habib Shahid Ghaffar

Ali Fadoo Shabbir Gulamali Ujala Mir Masood

Chief Executive : Syed Ather Abbas Chief Financial Officer : Murtaza Hussain Company Secretary : Muhammad Asif

Auditors : M/s. Grant Thornton Anjum Rahman Chartered Accountants

Share Registrar : M/s. CDC Share Registrar Services Limited

CDC House, 99-B, Block-B SMCHS, Main Shahrah-e-Faisal Karachi-74400

Registered Office : 1st Floor, State Life Bldg. No. 6

Habib Square, M. A. Jinnah Road

P.O. Box 5217, Karachi-74000 Pakistan

The Directors are pleased to present the unaudited accounts of the Company for the period ended March 31, 2025.

By the Grace of Allah, the performance of the Company for the first three month's has shown considerable improvement. Profit after tax of the Company for the period under review was Rs. 93.5 million as compared to Rs. 76.4 million of March 2024 resulting in an earning of Rs. 0.75 per share.

The Company has Mashallah recorded an underwriting profit of Rs. 5.2 million as compared to a loss of Rs. 33.6 million of the same period last year. The gross written premium for the period was Rs. 661.5 million as compared to Rs. 659.3 million for the corresponding period last year.

Investment Income and other income for the period under review was Rs. 154.2 million as against Rs. 125.1 million of March 2024 largely due to higher capital gains recorded during the period.

The first quarter of the year has been encouraging and we pray to Allah for continued progress for remaining part of the year, stability and economic progress of our Country and particularly for the safety and welfare of the people.

On behalf of the Board of Directors

Karachi: April 29, 2025

AUN MOHAMMAD A. HABIB

Director

SYED ATHER ABBAS

Chief Executive

Assets

(Unaudited) (Audited) March 31, December 31,

Note 2025 2024

(Rupees in ' 000)

Property and equipment 5 99,273 99,414

Intangible assets 12,614 13,358

Investments

Equity securities 6 2,308,344 2,009,403

Debt securities 7 525,909 526,085

Loans, deposits and other receivables 8 122,844 85,406

Insurance/ reinsurance receivables 9 1,381,147 1,528,029

Reinsurance recoveries against outstanding claims 16 607,594 580,330

Salvage recoveries accrued 138,631 110,252

Deferred commission expense 17 175,388 212,519

Prepayments 10 478,064 705,083

Taxation - provision less payment 20,790 43,950 Cash and bank 11 21,440 250,601

5,892,038 6,164,430

Total Assets of Window Takaful Operations - Operator's Fund 270,296 320,283

Total Assets 6,162,334 6,484,713

Equities and Liabilities

Capital and reserves attributable to Company's equity holders

Ordinary share capital 619,374 619,374

Reserves 1,096,676 1,150,819

Unappropriated profit 378,700 285,227

Total Equity 2,094,750 2,055,420

Liabilities

Underwriting provisions

Outstanding claims including IBNR 16

Unearned premium reserves 15

Premium deficiency reserves

Unearned reinsurance commission 17

Retirement benefit obligations Deferred taxation

Lease liability against right of use assets Borrowings

Premium received in advance

Insurance/ reinsurance payables 12

Other creditors and accruals 13

1,109,408

1,240,929

7,769

133,087

85,167

271,267

25,824

154,130

77,388

525,067

271,318

1,044,318

1,517,647

7,769

191,175

82,704

296,886

25,762 -101,647

563,811

403,935

3,901,354 4,235,654

Total Liabilities of Window Takaful Operations - Operator's Fund 166,230 193,639

Total Liabilities 4,067,584 4,429,293

Total Equity and Liabilities 6,162,334 6,484,713

Contingencies and commitments 14

The annexed notes from 1 to 23 form an integral part of these condensed interim financial statements.

MANSOOR G. HABIB

Director

QUMAIL R. HABIB

Director

AUN MOHAMMAD A. HABIB

Director

SYED ATHER ABBAS

Chief Executive

MURTAZA HUSSAIN

Chief Financial Officer

The annexed notes from 1 to 23 form an integral part of these condensed interim financial statements.

Habib Insurance Company Limited

Attributable to equity holders of the Company Capital Reserves Revenue Reserves

Reserve for

Share exceptional General Available-for-sale Unappropriated

capital losses reserve reserves profit Total

(Rupees in '000)

Balance as at January 01, 2024 619,374 9,122 355,000 384,945 135,012 1,503,453

Comprehensive income for the period

Net profit after tax for the period - - - - 76,429 76,429 Other comprehensive income for the period - net of tax - - - 63,883 - 63,883

Total comprehensive income for the period - - - 63,883 76,429 140,312

Balance as at March 31, 2024 619,374 9,122 355,000 448,828 211,441 1,643,765

Balance as at January 01, 2025 619,374 9,122 390,000 751,697 285,227 2,055,420

Comprehensive income for the period

Net profit after tax for the period - - - - 93,473 93,473 Other comprehensive income for the period - net of tax - - - (54,143) - (54,143)

Total comprehensive income for the period - - - (54,143) 93,473 39,330

Balance as at March 31, 2025 619,374 9,122 390,000 697,554 378,700 2,094,750

The annexed notes from 1 to 23 form an integral part of these condensed interim financial statements.

MANSOOR G. HABIB

Director

QUMAIL R. HABIB

Director

AUN MOHAMMAD A. HABIB

Director

SYED ATHER ABBAS

Chief Executive

MURTAZA HUSSAIN

Chief Financial Officer

(Unaudited) (Unaudited)

The annexed notes from 1 to 23 form an integral part of these condensed interim financial statements.

MANSOOR G. HABIB

Director

QUMAIL R. HABIB

Director

AUN MOHAMMAD A. HABIB

Director

SYED ATHER ABBAS

Chief Executive

MURTAZA HUSSAIN

Chief Financial Officer

1. LEGAL STATUS AND NATURE OF BUSINESS

   1. Habib Insurance Company Limited (the Company) was incorporated as a Public Limited Company in the year 1942 under the Companies Act, 1913 (now the Companies Act, 2017). The registered office of the Company is situated at Habib Square, MA. Jinnah Road, Karachi and the shares of the Company are quoted on the Pakistan Stock Exchange Limited. The Company is engaged in general insurance business comprising of Fire and property, Marine and transport, Motor, Group hospitalization and other classes.

      The Company as an Operator, was allowed to work as Window Takaful Operator on July 18, 2018 by Securities and Exchange Commission of Pakistan (SECP) under SECP Takaful Rules, 2012 to carry on General Window Takaful Operations (WTO) in Pakistan. The registered office of the Operator is situated at Habib Square, M.A. Jinnab Road, Karachi.

   2. The Company operates through the following locations in pakistan;

      Locations Address

      Head Office State Life Building No. 6, Habib Square, M.A. Jinnah Road, Karachi. Karachi Region P&O Plaza, Survey No. 3/2, Sheet No. R.4.5, Railway Quarter, I.I.

      Chundrigar Road Karachi.

      Rawalpindi Branch 1st Floor, Majeed Plaza, Bank Road, Rawalpindi Cantt. Dera Ghazi Khan Branch Block No. 17, Jampur Road, Dera Ghazi Khan.

      Faisalabad Branch Fatima Tower, 2nd Floor, Kohinoor Plaza, Faisalabad. P-6161, West Canal Road, adjacent to Toyota Faisalabad Motors & behind HBL Canal Road Branch, Faisalabad.

      Multan Branch Room No. 401, 403, Plot No. 74, United Mall, Abdali Road, Multan. Lahore Branches Plot No. 320, Block No. G/3, M.A. Johar Town, Lahore.

2. BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE

   These condensed interim financial information has been prepared in accordance with the format prescribed by Securities and Exchange Commission of Pakistan (SECP) through Insurance Rules, 2017, vide SRO 89 (I) / 2017 dated February 09, 2017.

   These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting 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 and provisions of and directives issued under the Companies Act, 2017, the Insurance Ordinance, 2000, Insurance Rules, 2017, Insurance Accounting Regulations, 2017 and Takaful Rules, 2012. Where the provisions of and directives issued under the Companies Act, 2017, Insurance Ordinance, 2000, Insurance Rules, 2017, and Insurance Accounting Regulations, 2017, and Takaful Rules, 2012 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017, Insurance Ordinance, 2000, Insurance Rules, 2017, and Insurance Accounting Regulations, 2017, and Takaful Rules, 2012 have been followed.

   In terms of the requirements of the Takaful Rules, 2012, read with SECP circular 25 of 2015 dated July 09, 2015, the assets, liabilities and profit and loss of the Operator's Fund of the Company have been presented as a single line item in the statement of financial position and profit and loss account of the Company respectively.

   The disclosures made in these condensed interim financial statements have been limited based on the format prescribed by the Securities and Exchange Commission of Pakistan vide SRO 89(I)/2017 and International Accounting Standard (IAS) 34, "Interim Financial Reporting" and do not include all the information and disclosures required in the annual financial statements. Accordingly, these condensed interim financial statements should be read in conjunction with the annual financial statements of the Company for the year ended December 31, 2024.

   1. Basis of measurement

      These financial statements have been prepared on the historical cost basis except for certain investments which are carried at fair value and obligations under certain employment benefits which are measured at present value.

   2. Functional and presentation currency

These financial statements are presented in Pak Rupees which is also the Company's functional currency. All financial information presented in Pak Rupees has been rounded to nearest Thousand Rupees, unless otherwise stated.

3 SIGNIFICANT ACCOUNTING POLICIES AND RISK MANAGEMENT

The significant accounting policies and method of computation adopted in preparation of these condensed interim financial statements are consistent with those followed in preparation of the annual financial statements of the Company for the year ended December 31, 2024.

4. ESTIMATES AND JUDGEMENTS

The preparation of the financial statements for the quarter requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

The significant judgements made by management in applying the Company's accounting policies and the key source of estimation uncertainity were the same as those that were applied to the annual financial statements for the year ended December 31, 2024.

1. INVESTMENT IN EQUITY SECURITIES

   March 31, 2025 (Unaudited) December 31, 2024 (Audited)

   Cost Impairment / Revaluation Carrying Cost Impairment / Revaluation Carrying provision surplus value provision surplus value

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

   Available-for-sale Related Parties
   Listed shares	280,508	-		339,949		620,457		208,289		-		322,283		530,572
   Others
   Listed shares	675,147		(4,854 )		615,246		1,285,539		719,546		(3,345)		715,736		1,431,937
   Listed prefernce shares	19,331		-		1,215		20,546		19,331		-		1,756		21,087
   Mutual funds	350,762		-		8,464		359,226		763		-		3,885		4,648
   Modaraba certificate	15,014		-		7,562		22,576		15,014		-		6,145		21,159
   	1,060,254		(4,854 )		632,487		1,687,887		754,654		(3,345)		727,522		1,478,831
   	1,340,762		(4,854 )		972,436		2,308,344		962,943		(3,345)		1,049,805		2,009,403

2. INVESTMENT IN GOVERNMENT SECURITIES

   Available-for-sale

   (Unaudited) (Audited)

   March 31, December 31,

   Note 2025 2024

   (Rupees in '000)

   Pakistan Investment Bonds (PIBs) 7.1 275,909 276,085

   275,909 276,085

   1. This represents Pakistan Investment Bonds having face value of Rs. 270.0 million (market value of Rs. 275.91 million) [December 31, 2024: face value Rs.270.0 million (market value of Rs.276.08 million]. These carry mark-up ranging from 13.10% to 13.75% (December 31, 2024: 13.10% to 13.75%) per annum and will mature between July 04, 2026 to November 10, 2033. PIBs having face value of Rs. 70.0 million have been deposited with the State Bank of Pakistan (SBP) as statutory deposit in accordance with the requirements of Section 29 of the Insurance Ordinance, 2000 and circular no. 15 of 2008 dated July 07, 2008 issued by the SECP.

      (Unaudited) (Audited)

   2. INVESTMENT IN TERM FINANCE CERTIFICATES March 31, December 31,

- Unsecured (available for sale) 2025 2024

(Rupees in '000)

100,000 100,000

150,000 150,000

1. CONTINGENCIES & COMMITMENTS

   1. Contingencies

      There is no contingency as at March 31, 2025 other than those disclosed in the financial statement as at December 31, 2024.

   2. Commitments

      There is no commitment as at March 31, 2025 (December 31, 2024: Nil).

2. NET INSURANCE PREMIUM

   (Unaudited) (Unaudited)

   March 31, March 31,

   2025 2024

   (Rupees in ' 000)

   Written gross premium 542,428 566,081

   Add: Unearned premium reserve opening 1,517,647 1,390,472

   Less: Unearned premium reserve closing (1,240,929) (1,104,008) Premium earned 819,146 852,545

   Less: Reinsurance premium ceded 178,099 289,359

   Add: Prepaid reinsurance premium opening 676,990 654,680

   Less: Prepaid reinsurance premium closing (458,400) (487,360) Reinsurance expense 396,689 456,679

   Net insurance premium 422,457 395,866

3. NET INSURANCE CLAIMS

   Claims paid 372,934 337,402

   Add: Outstanding claims including IBNR closing 1,109,408 1,140,852 Less: Outstanding claims including IBNR opening (1,044,318) (1,055,320)

   Claims expense 438,024 422,934

   Reinsurance and other recoveries received

   Add: Reinsurance and other recoveries in respect of outstanding claims net of impairment - closing

   Less: Reinsurance and other recoveries in respect of outstanding claims net of impairment - opening

   165,628

   746,225

   (690,582)

   149,445

   747,647

   (716,605)

   Reinsurance and other recoveries revenue 221,271 180,487

   Net insurance claims 216,753 242,447

4. NET COMMISSION INCOME

Commissions paid or payable 74,082 71,183

Add: Deferred commission - opening 212,519 184,408

Less: Deferred commission - closing (175,388) (141,271)

Commission expense 111,213 114,320

Less: Commission from reinsurers

Commission received or receivable 42,554 71,666 Add: Unearned reinsurance commission - opening 191,175 149,584 Less: Unearned reinsurance commission - closing (133,087) (117,435)

Commission from reinsurers 100,642 103,815

Net commission income (10,571) (10,505)

(Unaudited) (Unaudited)

March 31, March 31,

2025 2024

(Rupees in ' 000)

19.1 No figure for diluted earnings per share has been presented as the Company has not issued any instrument which would have an impact on earnings per share when exercised.

1. TRANSACTIONS WITH RELATED PARTIES

   Related parties of the Company comprise of associated companies, companies with common directors, major shareholders, staff retirement funds, directors and key management personnel. The Company in the normal course of business carries out transactions with related parties at commercial terms and conditions except for compensation to key management personnel which are on employment terms.

   The balances with / due from and transactions with related parties, other than those which have been specifically disclosed elsewhere in the financial statements are as follows:

   	(Unaudited) March 31, 2025 (Rupees	(Unaudited) March 31, 2024 in ' 000)
   Transactions and balances with associated companies
   Transactions during the year with associated companies
   Premium written	33,321	60,871
   Claims paid	60,679	18,128
   Dividend received	28,822	47,200
   Investment made	72,219	-
   Interest received on bank accounts	2,199	31,027
   Bank charges	144	107
   Donations	800	800
   Premium ceded to reinsurer	50,145	36,654
   Commission income	13,172	12,439
   Reinsurance recoveries received	23,801	37,321
   Remuneration of key managment personnel	86,081	56,317
   	(Unaudited) March 31, 2025 (Rupees	(Audited) December 31, 2024 in ' 000)
   Balances with associated companies
   Premium due but unpaid	69,513	144,347
   Claims outstanding	114,866	88,654
   Bank balances	15,900	238,864
   Investment held	620,458	530,572
   Reinsurance Receivable/ (payable)	33,436	(47,126)
   	(Unaudited) March 31, 2025 (Rupees	(Unaudited) March 31, 2024 in ' 000)
   Transactions during the year with other related
   parties including key management personnel
   Principal repayment of loans by key management
   personnel (secured)	962	909
   Interest income received	484	538
   Brokerage expenses paid	119	-
   Contribution to the provident fund	2,004	2,873
   	(Unaudited) March 31, 2025 (Rupees	(Audited) December 31, 2024 in ' 000)
   Balance with other related parties including

   key management personnel

   Loans to employees (secured) 20,129 19,044

2. SEGMENT REPORTING

Premium receivable (inclusive of Federal Excise Duty, Federal Insurance Fee and

March 31, 2025 (Unaudited)

Fire and Marine and Group Other

property transport Motor hospitalisation Classes Aggregate

(Rupees in '000)

Administrative surcharge) 173,978 92,427 317,205 14,434 33,918 631,962

Less: Federal Excise Duty 23,691 10,932 43,034 1,866 4,571 84,094

Federal Insurance Fee 1,493 806 2,723 124 294 5,440 Gross written premium (inclusive of

Administrative surcharge 148,794 80,689 271,448 12,444 29,053 542,428

Gross direct premium 147,599 77,995 262,602 12,437 28,674 529,307

Facultative inward premium - - - - - -

Administrative surcharge 1,195 2,695 8,847 5 379 13,121

148,794 80,690 271,449 12,442 29,053 542,428

Insurance premium earned 341,424 88,489 281,605 4,235 103,393 819,146

Insurance premium ceded to reinsurers (279,499) (33,970) (23,319) - (59,901) (396,689)

Net insurance premium 61,925 54,519 258,286 4,235 43,492 422,457

Commission income 70,715 9,818 5,607 - 14,502 100,642

Net underwriting income 132,640 64,337 263,893 4,235 57,994 523,099 Insurance claims

Insurance claims recovered from reinsurers

Net Claims 13,911 17,569 144,764 2,661 37,848 216,753

Commission expense Management expenses

Net insurance claims and expenses (101,497 ) (38,402) (128,654) (4,478 ) (27,788) (300,819)

Underwriting result 17,232 8,366 (9,525) (2,904 ) (7,642) 5,527

Investment income 151,073

Other income 3,147

Other expenses (3,116)

Results of operating activities 156,631

Finance cost (1,136)

Profit from Window Takaful Operations - Operator's Fund (23,891)

Profit before tax 131,604

Unallocated Assets

Allocated Liabilities

Unallocated Liabilities

SEGMENT REPORTING

Premium receivable (inclusive of Federal Excise Duty, Federal Insurance Fee and

March 31, 2024 (Unaudited)

Fire and Marine and Group Other

property transport Motor hospitalisation Classes Aggregate

(Rupees in '000)

Administrative surcharge) 140,495 193,527 228,848 (75 ) 88,801 651,596

Less: Federal Excise Duty 18,553 21,429 30,035 8 9,822 79,847

Federal Insurance Fee 1,208 1,703 1,976 (1 ) 782 5,668 Gross written premium (inclusive of

Administrative surcharge 120,734 170,395 196,837 (82 ) 78,197 566,081

Gross direct premium 119,622 168,063 190,306 (79 ) 77,785 555,697 Facultative inward premium - - 566 - - 566

Administrative surcharge 1,112 2,332 5,965 (3 ) 412 9,818

120,734 170,395 196,837 (82 ) 78,197 566,081

Insurance premium earned 311,376 146,897 290,214 2,071 101,987 852,545

Insurance premium ceded to reinsurers (261,606) (88,315) (40,911) - (65,847) (456,679)

Net insurance premium 49,770 58,582 249,303 2,071 36,140 395,866

Commission income 57,892 25,961 7,679 - 12,283 103,815

Net underwriting income 107,662 84,543 256,982 2,071 48,423 499,681 Insurance claims

Insurance claims recovered from reinsurers

Net Claims 5,885 6,957 187,129 2,997 39,479 242,447

Commission expense Management expenses

Net insurance claims and expenses (85,055 ) (74,419) (94,649) (38 ) (36,693) (290,854)

Underwriting result 16,722 3,167 (24,796) (964 ) (27,749) (33,620)

Investment income 92,884

Other income 32,167

Other expenses (2,656)

Results of operating activities 88,775

Finance cost (1,361)

Profit from Window Takaful Operations - Operator's Fund 22,646

Profit before tax 110,060