PakRs
Pakistan Reinsurance Company Limited
PRC Towers, 32-A, Lalazar Drivc, M.T. Ifiian Road, Karachi, Pakistan
Ph: 021-99202908- 14 Fax: (92-21) 99202920-21 & 22
E-mail: prcl@pakre.org.pk,Website: https://www.pakre.org.pk
PDIF/BS/BOD/ 96/2025
The General Manager
Pakistan Stock Exchange Limited Stock F.xchange Duildilag
Stock Exchange Road Karachi
FORM - 7 August 29, 2025
SUBMCT: FINANCIAL RESULTS FORTHE HALF YEAR ENDED JUNE30, 2025
Dear Sii,
We are pleased to inform you that the Boai'd of Directors of Pa1‹istan Reinsurance Company Limited (the Company') in its meeti•s *eld on Friday, 29 August 2025 at 3:00 p.m. at the Company's head office has i econimended the following:
CASH DIVIDEND: NIL
BONUS SHARES: NIL
RIGHT SHARES: NIL
ANY OTHER ENTITLEMENT / CORPORATE ACTION: NIL
ANY OTI-IER PRICE SENSITIVE INFORMA"I"ION: External Auditor haveissued qualified report for both convcntional and Window Re-takaful Accounts. Both are enclosed.
3"he financial resiilts of the Company for the captioned period are enclosed as AnnexuFE'A' (Conventional) and Annexure 'B' (WRTO).
The half yearly report of thc Company for the period ended June 30, 2025 will be transmitted through PUCARS separately, within the specified time and shall also be made available on Company's website https://www.pakre.ord.pk_.
Yours sincei ely,
For PAIfilSTAN REINSURANC E COMPANY I IMITED
Sumeet Kumar Company Secrctary
Director
Corripany Law Division Securities and Exchange Commission of Paltistan
NIC Building, 4innate AVTnue Blue Area, Islamabad
Director
Enforcement Department Securities and Exchange Commission of Pakistan
NIC Building, Jinnah Aveniie
Blue Arca, Islamabad
Executive Director/HOD Offsite-11 Department Supervision Division Securities & Exchange Corrumission of Pakistan
63., NIC l3uilding, .Iinnali Avenue. Islamabad
Emerging Pakistan is an initiative put in motion by the Ministry of Commerce, Government of Pakistan. For more details please contact:
MINISTRY OF COMMERCE
ROOM NO.5D2, 5" FLOOR, BLOCK-A,
PAK SECRETARIAT, ISLAMABAD, PAKISTAN
t m e fl G i n o
TEL: +92-5 1-92O2621
FA1: +92-51-9205241
https://www.commerce.Nov.pk www emerqinApakistan.eov pk
CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UNAUDITED)
FOR THE SIX MONTHS AND THREE MONTHS PERIOD ENDED JUNE 30, 2025
Note
Six months period ended
June 30, 2025 J me 30, 2024
Unaudited Unaudited
------------- Rupees ------------
Three months period ended June 30, 2025 June 30, 2024
Unaudited Unaudited
----------- Rupees -----------
Net insurance premium | 2G | 4,827,730,837 | 5,5fi8,892,500 | 2,555,728,748 | 2-,70t ,291,810 | ||||
Net insurance clauns | 27 | (3,513,510,725) | (2,71S,826,636) | (1,880,340,728) | (1,317,837,252) | ||||
Net commi.ssirin ancl tether acquistir›n costs | 28 | (592,334,945) | (530,510,189) | (325,042,881) | |||||
Insurance claims and acquisition expenses | (4,105,845,670) | "(3,246,336,825) | (2,205,383,609) | ||||||
I'v1anahement expenses | (968,052,586) | (965,262,142) | (528,286,056) | (612,016,744J | |||||
Underwriting results | (246,167,419) | 1,187,293,633 | ('7G,940,917) | 505,539,844 | |||||
Investment income | 30 | 1,757,952,279 | t,57fi,044,372 | 844,085,315 | 973,335,306 | ||||
Rental income - net | 31 | 76,819,764 | 70,310,825 | 37,943,444 | 31,062,684 | ||||
Finance cost | (4,819,472) | (5,528,fi80) | (4,683,356) | (6,531,991) | |||||
14 ther income | 176,224,179 | t80,5fi7,t78 | 94,419,773 | 73,300,734 | |||||
Other expenses | (31,170,255) | (40,748,55) | (28,529,843) | (39,735,367) | |||||
Profit before tax from general operations | 1,728,839,076 | 3,05fi,898,455 | 866,294,416 | 1,536,971,210 | |||||
Pr‹›fit Irt›ni Tindow Retakaful Operauons | 68,978,098 | 92,601,799 | 35,644,955 | 82,795,536 | |||||
Profit before levies and income tax | 1,7s7,s17,174 | 3,162,500,265 | 901,939,371 | 1,619,766,746 | |||||
Levies | (13,870,175) | - | (M,870,175) | ||||||
Profit before income tax | 1,783,946,999 | 3,162,500,264 | 888,069,196 | 1,619,766,74G | |||||
Income tax | 82 | (653,302,021) | (1,477,399,325) | (316,504,368) | (882,222,103J | ||||
Profit for the period | 1,130,644,978 | t,68S,100,939 | 571,564,828 | 737,54t,643 | |||||
Earnings (after tax) per share - Rupees | 33 | 1.2G | I .87 | 0.54 | 0.82 |
Tlit annexccl mites 1 tit 39 f‹irm an integral part of these c‹indensed interim financial stateinents.
kecto
Chairman
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UNAUDITED)
AS AT JUNE 30, 2025
ASSETS
Property and equipment Intangible Assets
Right-of-use asset
Assets relating to Bangladesh Investment properties Investments
Equity' securities
}uzte 30
2025
Unaudited Rupees
7 948,046,569
8 19,633,109
2,049,364,706
t0
864,476,353
December 31
2024
Audited Rupees
935,839,100
19,761,107
2,177,450,000
8G4,475,3S3
Debt securities
i2 1 705 074 28 8o g 2 2
25,458,360,974 23,703 772,247
Loans and other receivables Receivable from Sindh Revenue Board Insurance / Reinsurance receivables
Reinsurance recoveries against outstanding claims Deferred Commission Expense / Acquisition cost
Levies and taxation - payments less rrovision Prepayments
Cash and hauls balances
Total assets from Window Taliaful Operations - OPF
Total Asscts
EQUITY AND LIABILITIES
Capital and reserves attributable to Company's equity holders Ordinaq' share capital
Reserves
Total Equity
Revaluation surplus - net of tax Liabilities
Underwriting l°rovisions
Outstanding claims including IBNR
Unearned premium reserves
Uteamed Reinsurance Commission
Retirement benefit r›b1igations
1.cvies and taxation liabilities - provision less payments Deferrecl taxadoii
Insurance / Reinsurance Payables Lease liabilities
Unclaimed Dividend
Other Creditors and iccruals Total Liabilities
Total liabilities from Window Takaful Operations - OPB Total Liabilities
Total Equity and Liabilities
Contingency(ies) and commitment(s)
14 1,019,949,651
15 2,573,888,727
i6 14,069,806,013
17 9,299,740,603
18 1,074,602,389
510,510,388
19 10,287,278,109
20 1,176,786,991
40,012,562,871
69,352,444,582
1,185,264,577
70,537,709,159
9,000,000,000
4,215,920,527
7,495,308,381
20,711,228,908
1,608,802,455
2T 18,064,602,845
13,854,520,871
763,416,937
32,682,540,653
3,573,534,068
22 2,990,285,672
28 8,537,958,597
23,159,244
55,848,656
24 89,135,386
15,269,921,623
47,952,462,276
265,215,520
48,217,677,797
70,537,709,159
25
873,898,168
2,573,888,727
9,663,385,890
15,767,126,860
1,047,205,897
6,955,327,497
3,235,526,667
40,116,359,706
67,817,658,513
1,262,305,627
69,079,964,040
9,000,000,000
4,l24,5ll,680
8,077,645,581
21,202,157,261
1,6fi3,820,477
24,335,649,075
J0,G2T,849,4 8 505,4?G,15.1
35,450,9?4,GG6
3,401,370,786
533,34J,570
2,945,023,429
3,208,296,520
23,775,995
93,997,856
157,872,539
10,343,678,725
43,8tl4,6'3,3S1
377,312,911
46,181,966,302
69,079,964,040
The annexed notes 1 to 59 form an integral part of these condensed interim financial statements.
Dir ctor
Chief ExccuJve Officer
Chairman Chief Financid Officer
'P g2STA2if REINSURANCE COMPANY LIMITED
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UNAUDITED) FOR THE SIX MONTHS PERIOD ENDED J 30, 2025
Share capital Reserves
Issued subscribed and paid-up | t | Ocher | Revenue reserves | Total reserves | Total equity | |||
Reserve for exceptional | Unrealized gain on available for sale | Revaluation surplus | General reserve | Retained earnings | ||||
---------------------------------------------------------------Rupees-------------------------------------------------------
Balance as at January 01, 2024
V,0000O0,000 281,000,000
1,384,637,060 1,590,000,034 4,13 h,296,316 4,748,800,041 9,139,733,451 18,t39,733,451
TocsJ Comprehensive income for chc period enclcd J unc 30, 2024 Linreatzcd loss on zvadsble for sale investments
Effect of changes in deferred tax *ate
Incremental depreciation
Right of use assets
Propcrr)' and equipment
i ,683,100,938 1,685,100,938 1,685,100,938
179,633,426
(142,388,063)
37,245,363
37,245,363
179,633,426 (142,388,063)
(6,788,485)
(61,898,556)
G,788,485
6l,898,55G
(G8,587,041)
1,685,100,938 1,722,346,301 1,722,346,304
68,687,041
Pina1 cash diNdcnd 2023: Rs.1.00 @ t0% (2022 : Rs..0.75 @ 7.5%) per share Balance as at June 30, 2024
9,000,000,000 281,000,000
(900,000,000) (900,000,000) (900,000,000)
1,554,270,486 1,578,924,930 1,135,205,316 5,602,588,020 9,962,079,752 18,942,079,752
Balance as ar January 01, 2025 | 9,000,000,000 | 281,000,000 | 2,708,215,564 | 1,695,820,477 | 1,135,296,316 | 8,077,645,381 | 13,897,977,738 | 22,897,977,738 |
Total Comprehensive income for the period ended june 30, 2023 | 1,130,644,978 | 4,4 30,644,978 | 1,130,644,978 | |||||
Unrealized loss on available for sale investments | 91,408,647 | 91,408,547 | 91,408,G47 | |||||
9t,40B,G47 | 1,130,644,978 | 4,222,053,625 | 1,222,053,625 | |||||
Incremental depreciation - net of tax | ||||||||
- Right of use assets | (77,604,419) | 77,604,419 | ||||||
- Property' and equipment | (9,413,603) | 9,413,503 | ||||||
(87,018,022) | 87,018,022 | |||||||
Final cash dividend 2024: Rs.2.00 @ 20%• (2023 : Rs..1.00 @ 10%) per share | - | (1,800,000,000) | (1,800,000,000} | (t,B00,000,000) | ||||
Balance as at June 30, 2025 | 9,000,000,000 | 281,000,000 | 2,799,624,211 | 1,G08,802,455 | 1,135,296,316 | Y,495,308,381 | J3,320,031,3G3 | 22,320›031,3G3 |
Oirecto
Chief Executive Officer
The annexed notes 1 to 39 form an integral part of these condensed interim financial statements.
Chair
C!fiefF c er
Page 4 of 14
PAKISTAN REINSURANCE COMPANY LIMITED
CONDENSED INTERIM STATEMENT OF CASH FLOWS (UNAUDITED) FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 2025
Operating Cash Flows: Underwriting activities:-Premium received Reinsurance premium paid Claims paid
Reinsurance and other recoveries received
Comrriission paid Commission received
Other underwriting payments (management expenses) Net cash generated from underwriting activities
Othet Operating Activities
June 30
2025
Unaudited
12,701,347,741 | 13,950,940,660 |
(7,003,741,725) | (7,397,301,851) |
(5,596,360,042) | (5,302,641,654) |
6,281,189,344 | 3,032,832,482 |
(1,251,617,457) | (1,096,584,692) |
889,806,804 | 523,054,403 |
(984,923,634) | (841,307,017) |
(Rupees)
1,035,701,031
June 30
2024
Unaudited
(Rupees)
2,869,022,331
I-evies and income tax paid | (1,751,950,505) | (969,335,133) |
General management cxpenses raid | (30,964,889) | (22,886,S16) |
Other operating (payments) / receipts | 567,030,621 | 11 t,378,234 |
Advances to employees | (8,265,625) | (3,431,827) |
Set cash used in other operating activities | (1,424,150,398) | (884,275,242) |
Total cash (used in)/generated from all operating activities | (388,449,367) | 1,984,747,089 |
Investment activities |
(60,921,121) | (37,010,304) |
13,268,181 | |
(6,999,222,753) | (6,665,744,301) |
21,357,630 | 10t,668,669 |
250,447,959 | 146,656,356 |
185,614,391 | 218,802,171 |
1,299,794,787 | 1,062,738,170 |
5,459,353,202 | 5,231,403,414 |
Fixed Capital expenditure
Sale proceeds of operating fixed assets Acc{uisition of investments
Rental income received - net of expenses Dividend income received
Interest income on bank deposits
Investmcnt income received - net of expenses Proceeds on sale/ maturity of investments
Total cash generated from investing activities Financing activities | 169,692,275 | 58,514,175 |
Dividend paid | (1,838,149,230) | (895,545,640) |
Payments of finance leases | (1,833,356) | |
Total cash generated used in financing activities | (1,839,982,586) | (895,545,640) |
Net cash (used in)/generated from all activities | (2,058,739,678) | 1,147,715,G24 |
Cash at beginning of the period | 3,235,526,667 | 3,159,752,669 |
Cash and cash equivalent at the end of the period | 1,176,786,951 | 4,307,468,293 |
June 30
2025
Unaudited
(Rupees)
June 30
2024
Unaudited
(Rupees)
Reconciliation to profit and loss account Operating cash flows
Depreciation expense Amortization expense Exchange gain
Rental income
Reinsurance recoveries against outstanding claims Provision fear outstanding claims
Provision for unearned premium Prepaid reinsurance
Provision for employee benefits Dividend income
Investment income Interest income Amortization of premium Gain on sale of investment
Increase/(Decrease) in operating assets other than cash (Increase)/Decrease in operating liabilities
Other adjustmcnts:
Levies and income tax paid
Profit before levies and income tax Levies and income tax
Profit for the period
Profit from V*indow Retakaful Operations - Operator's Fund Profit aftcr taxation for the period
Cash for the purpose of the statement of cash flow consist of: Cash and cash equivalents:
Cash and other equivalent Current and other accounts
(23,111,429)
(388,449,367)
(163,530,766)
(127,998)
42,852,252
76,815,764
(6,467,386,257)
6,269,046,230
(3,232,671,433)
3,328,890,460
(172,163,282)
357,090,462
35,874,147
1,203,197,620
93,361,794
161,790,050
4,171,081,256
(5,338,786,361)
t,984,747,089 (130,169,687)
(94,418)
70,340,825
(2,071,172,941)
1,625,155,477
3,279,751,809
(2,483,380,878)
(118,328,333)
231,809,033
110,265,177
1,2t7,728,268
76,893,407
42,348,487 (1,987,715,13G)
265,147,21•i
1,751,950,505
1,728,839,076
(667,172,196)
1,061,666,880
68,978,098
Hprsi 1,130,644,978
866,385
1,175,920,fi06
2,100,563,333
969,335,133
3,069,898,466
(1,477,399,325)
1,592,499,141
92,601,799
1,685,t00,S40
671,107
4,306,797,186
4,307,468,293
The arinexed notes 1 to 39 form an integral part of these condensed interim financial statements.
Chief Execufive Officef
Chief Financid Officer
CONDENSED INTERIM STATEMENT OF PROF£T OR LOSS (UNAUDITED) FOR THE SIX MONTHS AND THREE MONTHS PERIOD ENDED JUNE 30, 2025
Note
Six months period Ended Three months period Ended
Run 30, Run 30, Run 30, Jun 30,
2025 2024 2025 2024
-------------------Rupees---- -----------
Participant's Retakaful Fund Contributions earned | 23 | 1,014,909,939 | 824,186,468 | 321,384,141 | 429,029,107 | ||
Less: contributions ceded to retrotakaful | (104,020,677) | (104,183,646) | (55,656,770) | (48,015,356) | |||
Net contribution revenue | 010,889,262 | 720,002,822 | 265,727,371 | 38 I ,013,7s 1 | |||
Wakala expense | 24 | (202,981,988) | (164,837,294) | (64,276,828) | (85.803,821) | ||
Net underwriting income | 707,907,274 | 555,165,529 | 201,450,543 | 295,207,930 | |||
Net claims - reported/ settled - IBNR | 25 | (360,749,216) | (372,486,579) | (31,223,623) | (262,321,793) | ||
Surplus before investment income | 347,158,058 | 182,678.9J0 | 170,226,920 | 32,886,137 | |||
Profit on bank deposit | 70,704,237 | 121,173,453 | 42,477,810 | 12 I ,173,453 | |||
Investment income | 99,892,995 | 59,964,847 | 91,111,383 | 51,024,051 | |||
Less: Modarib's share of investment income and profit on bank deposit | (42,649,308) | (45,284,575) | (33,397,298) | (43,049,376) | |||
127,947,925 1ss,g53,725 | 129,148,128 | ||||||
Surplus before taxation | 475,105,983 | 318,532,675 | 270,418,815 | 162,034,26J | |||
Taxation | 26 | (34,889,126) | (30,963, 103) | (28,459,758) | (25,829,628) | ||
Surplus for the period transferred to accumulated surplus | 440,216,857 | 287,569,572 | 241,959,057 | 136,204,637 | |||
Operator's Retakaful Fund | |||||||
Wakala fee income | 24 | 202,981,988 | t64,837,294 | 64,276,828 | 85,805,821 | ||
Commission expense | 27 | (202,578,531) | (I 32,397,828) | (106,441,264) | (88,100,889) | ||
General, administrative and management expenses | 28 | (I0,J34,837) | (9.820,196} | (.5,699,810) | (6,4Rl,ll8) | ||
( 931,380) | 2,619,270 | (47,864,246) | (8,776,t86) | ||||
Modarib's share of participant's investment income | |||||||
and profit on bank deposit | |||||||
Investment income | |||||||
Profit on bank deposit | |||||||
78,909,478 | 89,982,529 | 62,197,847 | 85,302,142 | ||||
Profit before taxation | 68,978,098 | 92,601,799 | 14,333,601 | 76,525,956 | |||
Taxation | (26,901,458) | (36,114,702) | (5,590,104) | (29,845,123) | |||
Profit after taxation | 42,076,640 | 56.487.097 | 8,743,497 46,680,833 | ||||
42,649,308 | 45,284,575 | 33,397,298 | 43,049,376 |
24,254,019 | 14,539,977 | 21,950,743 | 12,094,789 |
12,006,151 | 30.157,977 | 6,849,806 | 30,157,977 |
The annexed notes I to 34 form an integral part of these condensed interim financial statements.
meet
ector
Chief Executive Otficer
ref Financ a
cer
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UNAUDITED) AS AT JUNE 30, 2025
Operator's R‹i«k«r«l Fund | | | Participant's | Retatiafui rand | |||
Jun 30, 2025 (Unaudited) | December 31, 2024 (Audited) | Jun 30, 2025 (TJnaudited) | December 31, 2024 (Audited) |
Note
-------------------------Rupees------ --- ---------
ASSETS
investments | 6 | 514,997,439 | 208,S 15,432 | 2,892,104,664 | 813,094,056 | |
Other receivable | 7 | 5,848,t99 | 7,484,813 | 10,858,515 | 23,412,420 | |
Takaful/retakaful receivables | 8 | 562,350,239 | 585,782,001 | |||
Receivables from Participant's/Operator's Retakaful fund - net | 9 | 192,806,996 | 159,393,278 | |||
Qard-e-hasna to Participant's Retakaful Fund | 300,000,000 | |||||
RetakafiJl recoveries ag8inst outstanding claims | 131,202,104 | 207,495,090 | ||||
Deferred wakala fee Deferred commission expense | 10 i i | 145,133,995 | 184,582,058 | 126,223,827 | 175,296,605 | |
Deterred tax asset | 12 | l,295,fi68 | ||||
Prepayments | 13 | 86,754,447 | 148,038, 177 |
Bank balances 14 25,182,379 402,529,946 59,218,374 1,914,448,854
TOTAL ASSETS
FUND AND LIABILITIES
FUNDS ATTRIBUTABLE TO:
Operator's Retakaful Fund Statutory fund
1,185,264,577 1,262,305,527
600,000,000
3,868,712,171
3,867,567,203
Reserves 15 320,049,058 284,992,6 16
Total Operator's Funds Participant's Retakaful Fund
Seed money
920,049,058
884,992,616
1,000,000
Reserves 15 - 2,073,941,166 1,680,306,271
Balance of Participant's Takaful Fund
2,074,941,166
1,681,306,271
Qard-e-Hasna - 300,000,000 300,000,000
LIABILITIES
620,923,951 631,119,135 | 597,880,348 876,483,028 | ||
1,252,043,086 | 1,474,363,376 | ||
126,223,827 | 175,296,606 | ||
48,889,232 | 252,472,589 | ||
192,806,996 | 159,393,278 | ||
J 9,102,695 | 54,123,865 | ||
3,192,746 | |||
1,341,753 118,547,245 | 1,349,878 143,349,816 | 3t,690 | 31,690 |
Underwriting provisions
- 2,374,941,166
1,981,306,271
Outstanding claims including IBNR 16 Unearned contribution reserves 17 Unearned wakala fee t0 Takaful/retakaful payables 18 Payable to Participant/Operator's Retakaful Fund - net | |||||
Taxation - provision less payment | 19 | ||||
Deferred tax liability | 12 | ||||
Other creditors and accruals | 20 | ||||
Payable to related party | 2 1 | ||||
TOTAL LIABILITIES | 265,215,520 377,312,911 1,493,771,004 1,886,260,933 | ||||
TOTAL EQUITY AND LIABILITIES | 1,185,264,577 1,262,305,527 3,868,712,171 3,867,567,203 | ||||
CONTINGENCIES AND COMMITMENTS | 22 | ||||
Director
C lefExecutive Oiiicer Chief Financial Officer
The annexed notes 1 to 34 form an integral part of these condensed interim financial statements.
Chairman
CONDENSED INTERIM STATEMENT OF CHANGES IN FUNDS
FOR THE PERIOD ENDED JUNE 30, 2024
Attributable to Operator's Retakaful Fund | ||||
Statutory Fund | Reserves | Totnl | ||
Capital | Revenue | |||
Unrealized gain / (loss) on available r» snIe investment | Unappropriated | Total Reserves | ||
56.487,097 | 56.487,097 | 56,487,097 | ||
(355,945) | (355,945) | (355,945) | ||
(2,216,665) | (2,216,665) | (2,216,665) | ||
776 144 | 776 144 | 776 144 |
600,000.000 | 1.342,622 | 18 I ,571,997 | 182,914,619 | 782,914,619 |
(I ,796,466) | 56,487,097 | 54,690,631 | 54,690,631 | |
600,000,000 | (453 844) | 238 059 094 | 237,605,250 | 837,605 250 |
600,000,000 | 4,993,783 | 279,998,833 | 284,992,61 d | 884.992,6 16 |
Balance as at January O I, 2024 (Audited) Total comprehensive income for the period Profit for the year
Unrealized loss on available for sale investments-net of tax Deferred tax impact
Balance as at Jun 30, 2024 (Unaudited)
Balance as at January 0 I , 2025 (Audited) Total comprehensive income ror the period Profit ror the period
Unrealized loss on available for
sale investments-net or tax
(7,020, 198)
42,076,640 | 42,076,640 | 42,076,640 | ||
(7,020, 198) | (7,020,198) | (7,020,198) |
42,076.640
35,056,442
35,056,442
Balance as at Jun 30, 202'i (Unaudited)
600,000,000
(2,026,415) 322,075,473
320,049,058
92 04 0T8
Attributable to Participant's Retakaful Fund | |||||
Seed money | Resez-yes | ||||
CaiCA | Revenue | ||||
UnreaWzed@oss)ox investment | Accumulated surplus | Total Reserves | |||
(2,691,268) | 290,260,840 | 287,569,572 | 287,569,572 |
(10,926,404) | (10.926,404) | (10,926,404) |
---------------------------------------------Rupees---------------------------------------
Balance as at January 01, 2024 (Audited) Total comprehensive income for the period | I ,000,000 | 9,716,635 | 1.083,760,197 | I ,093,476,832 | 1,094,476,832 | |
Surplus for the period | ||||||
Unrealized loss on available for sale investments | ||||||
(13,617,672) | 290,2d0,840 | 276,643,168 | 276,643,168 | |||
Balance as at Jun 30, 2024 (Unaudited) | 1,000 000 | (3,901 037) | 74 02 037 | 1,370.120,000 | 1,371,120,000 | |
Balance as at January 0 1, 2025 (Audited) Total comprehensive income for the period | 1,000,000 | 34,364,428 | 1,645.941,843 | 1,680,306,271 | 1,681,306,271 | |
Surplus for the period | ||||||
Unrealized loss on available for sale investments | ||||||
(46 581;962) | 440,216,857 | 393,634,895 | 393,634,895 | |||
Balance as at Jun 30, 2025 (Unaudited) | 1,000.000 | _ | (12,217,534) | 2,086,158,700 | 2,073,941,166 | 2,074 4 166 |
440,216,857 | 440,216,857 | 440,216,857 | ||
(46 581 962) | (46,581,962) | (46,581,962) |
The annexed notes 1 to 34 form an integral part of these condensed interim financial statements.
PAKISTAN REINSURANCE COMPANY LIM ITEI1 - WINDOW RETAKAFUL OPERATION CONDENSED INTERIM STATEMENT OF CASHFLOWS (UNAUDITED)
FOR THE SIX MONTH PERIOD ENDED 30 JUNE, 2025
Operator's Retakaful Fund | | Participant's Retakaful Fund | ||
Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2025 | | Jun 30,2024 |
Operating cash flow
Retakaful activitiesContribution received
Retro takaful contribution paid Benefits paid
Benefits recoveries from retro takaful Commission paid
-------------------------------Rupees------------------------------- _
792,977,808 | 795,194,588 | ||
- | (246,320,304) | (84,464,040) | |
(351,576,871) | (269,159,388) | ||
90,164,244 | |||
(163,130,467) | (181,855,454) |
Net cash (used in) / generated from retakaful activities (163,130,467)
(61,922,628) | (7,884,736) | ||
(10,334,837) | (9,820,196) | ||
139,970,715 | 156,154,725 | (188,204,212) | (152,948,795) |
Other operating activities Income tax paid Management expenses paid
Other operating receipts/(payments)
(181,855,454)
285,244,877
441,571,161
Net cash generated from/(used in) other 67,713,250 138,449,793 (188,204,212) (152,948,795)
operating activities 67,713,250 138,449,793 (188,204,212) (152,948,795)
Total cash (used in)/generated from all operating activiti (95,417,217)
(318,190,520) | (172,358,981) | (2,122,868,376) | (650,970,115) |
12,006,151 | 30,157,977 | 70,704,237 | 121,173,453 |
24,254,019 | 14,539,977 | 99,892,995 | 59,964,847 |
Investing activities
Payment for investments iiiade Receipt of profit on bank deposits Receipt of investment income
(43,405,662)
97,040,665
288,622,356
Total cashflow from investing activities
Financing activities
(281,930,350)
(127,661,027)
(1,952,271,144)
(469,831,815)
Statutory fund Total cash from financing activities
Net cash flow from/(used-in) all activities
(377,347,567)
(171,066,689)
(1,855,230,479)
(181,209,449)
Cash and cash equivalents at beginning of the period 402,529,946 489,833,804 1,914,448,854 1,669,936,933
Cash and cash equivalents at end of the period
Reconciliation to profit and loss Operating cash flows
Receipt of Profit on bank deposits Receipt of Investment income
(Decrease)/increase in operating assets other than cash (I ncrease) decrease in operating liabilities
Change in tax rate
Other adjustments:
25,182,379
318,767,115
59,218,375
1,488,727,485
(95,417,217) | (43,405,662) | 99,764,858 | 288,622,366 |
12,006,151 | 30,157,977 | 70,704,237 | 121,173,453 |
24,254,019 | 14,539,977 | 99,892,995 | 59,964,847 |
(6,375,390) | 65,980,842 | (222,635,161) | (21,479,672) |
77,076,221 | 17,443,929 | 427,379,054 | (129,748,319) |
Income tax paid 57,434,314 7,884,736
Profit before taxation | 68,978,097 | 92,601,799 | 475,105,983 | 318,532,675 |
Provision for taxation | (26,901,458) | (36,114,702) | (34,889,126) | (30,963,103) |
Profit after taxation | 42,076,639 | 56,487,097 | 440,216,857 | 287,569,572 |
f'ector
The annexed notes 1 to 34 form an integral part of these condensed interim financial statements.
HYDER BHIMJI & CO.
CHARTEREDACCOUNTANTS
INDEPENDENT AUDITOR'S REVIEW REPORT
TO THE MEMBERS OF PAKISTAN REINSURANCE COMPANY LIMITED REPORT ON ItEVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS
Introduction
We have reviewed the accompanying condensed interim statement of financial position of Pakistan Reinsurance Company Limited (the Company) as at June 30, 2025 and the related condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim statement of cash flows, condensed interim statement of changes in equity and notes to the condensed interim financial statements for the six-months period then ended (here-in-after referred to as the "condensed interim financial statements"). Management is responsible for the preparation and presentation of these 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.
Scope of 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.
Basis for Qualified Conclusion
-
Receivable from Sindh Revenue Board (SRB) and the Related Litigation
As disclosed in note 15 to the condensed interim financial statements, an amount of Rs. 2,573.889 million which has been carried from the year 2017 as receivable from Sindh Revenue Board (SRB) which was recovered by SRB in respect of sales tax on reinsurance services. The Company has recorded this amount as an asset; however, the Company could not substantiate any control over the underlying asset and the flow of economic benefits is remote due to ongoing Court case. Had the Company not recorded this asset, total assets, accumulated profit and shareholders' equity would have been reduced by the same amount accordingly.
Unreconciled balances
The opening balances of the Company's amount due from other insurance / reinsurance companies on account of treaty and facultative business to the extent of gross amount of Rs. 6,791.78 million and net amount of Rs. 6,155.10 million (refer note 16 of the condensed interim financial statements) includes balances which remained unreconciled as at the reporting date and that gross amount included opening balance of related party M/s National Insurance Company Limited amounting to Rs. 49.837 million whose financial statements are not available after the year 2023 for litigation issues.
Suite No. 1601, 16th Floor, Kashif Centre, Shahrah-e-Faisal, Karachi. Phone: 92-21-35640050 - 52 Website: https://www.krestonhb.com E-mail: hyderbhimji@krestonhbco.coin info@krestonhbco.com OTII £.Ii OI I It ES LAHORE - FAISALABAD - ISLAMABAD
Similarly, the opening balance of Company's amount due to other insurance companies on account of treaty and facultative business, as appearing in note 23 of the condensed interim financial statements, to the extent of Rs 94.92 million includes balances which remained unreconciled as at reporting date. Management asserted that the reason for time lag in reconciliation is intimations and communications of the transactions which normally takes place after 3 to 4 months of the transaction. The Company is in the process of reconciling these balances. Due to pending reconciliations relating to the above balances, resultant adjustment and consequential impact thereon, if any, on the condensed interim financial statements remain unascertained.
Qualified Conclusion
Based on our review, with the exception of the matters described in the "Basis for Qualified Conclusion" section of our report, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporhng.
Emphasis of Matter
Please refer to notes 16, 17, 18, 19, 21, 23, 26, 27, 28 and 35 to the condensed interim financial statements, which reflect the transactions and balances relating tñ the Company's treaty proportional reinsurance business. Previously, no supporting documentation of the premium and claims of the ceding insurance companies were made available to the auditors. However, effective preceding year the management has developed some control mechanism over treaty proportional business premium and claims which includes obtaining relevant information from ceding companies in support of periodic returns on random basis arid performing ceding company wise analysis of treaty proportional business as well as checking compliance of the treaty terms. However, tlfis needs consistency and continuity of the internal control system over the years.
As disclosed in note 25, which provides details regarding conmgencies in respect of which decisions are pending and against which no adequate provisions are made in the condensed interim financial statements. In view of the material contingent liabilities, we have emphasized this matter in our review report.
Other Matters
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 profit and loss account and condensed interim statement of comprehensive income for the quarters ended June 30, 2025 and June 30, 2024 have not been reviewed by us.
The engagement partner or› the review resulting in this independent auditor's review report is Mohammad Hanif Razzak.
"•c
Dated: August 29, 2025
UDIN: RR2025l0222spfLvhN2E
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PAKISTAN REINSURANCE COMPANY LIMITED - WINDOW RETAKAFUL OPERATIONS
REPORT ON REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS
Introduction
We have reviewed the accompanying condensed interim statement of financial position of Pakistan Reinsurance Company Limited - Window Retakaful Operation (the Operator} as at June 30, 2025 and the related condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim statement of cash flows, condensed interim statement of changes in funds and notes to the condensed interim financial statements for the six-months period then ended (here-in-after referred to as the "condensed interim financial statements"). Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with accounting 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.
Scope of review
We conducted our review in accordance with Internahonal Standards 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.
Basis for Qualified Conclusion
Unreconciled Balances
The opening balances of takaful / retakaful receivables (refer note 8 of the condensed interim financial statements) to the extent of gross amount of Rs 364.956 million and net amount of Rs. 337.815 million include material balances which remains unreconciled as at the reporting date and that gross amount includes opening balance of related party M/s National Insurance Company Limited amounting to Rs. 7.758 million whose financial statements are not available after the year 2023. Similarly, the operator's amount includes opening balance due to other insurance companies on account of treaty and facultative business as appearing in Note 18 in the annexed financial statements includes unreconciled balance of Rs. 10.439 million. Managements asserted that the reason for time lag in reconciliation is intimations and communications of the transactions which normally takes place after 3 to 4 months of transaction. The Operator is in the process of reconciling these balances. Due to pending reconciliations relating to the above balances, resultant adjustment and consequential impact thereon, if any, on the condensed interim financial statements remain unascertained.
Suite No. 1601, 16th Floor, Kashif Centre, Shahrah-e-Faisal, Karachi. Phone: 92-21-35640050 - 52 Website: https://www.krestonhb.com E-mail: hyderbhimji@krestonhbco.com info@krestonhbco.com
OTI IEk OF I If US LAHORE - FAISALABAD - ISLAMABAD
Qualified Conclusion
Based on our review, with the exception of the matter described in the "Basis for Qualified Conclusion" section of our report, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.
Emphasis of Matter
We draw attention to the notes 8, 10, 11,13,16, 17,18, 23, 25, 27 and 29 to the condensed interim financial statements, which reflect the transactions and balances relating to the Operator's treaty proportional reinsurance business. Previously, no supporting documentation of the contribution and claims of the ceding insurance companies were made available to the auditors. However, effective preceding year the management has developed some control mechanism over treaty proportional business premium and claims which includes obtaining relevant information from ceding companies in support of periodic returns on random basis and performing ceding company wise analysis of treaty proportional business as well as checking compliance of the treaty terms. However, this needs consistency and continuity of the internal control system over the years. Our opinion is not further modified in respect of the matters.
2 We draw attention to the note 22.1 to the condensed interim financial statements, which provides details regarding contingencies in respect of which decisions are pending. Our conclusion is not further modified in respect of this matter.
Other 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 profit and loss account and condensed interim statement of comprehensive income for the quarters ended June 30, 2025 and June 30, 2024 have not been reviewed by us.
The engagement partner on the review resulting in this independent auditor's review report is Mohammad Hanif Razzak.
Karachi
Dated: August 29, 2025
UDIN: RR202510222FnP3aBy7I