Corporate Briefing Session - Presentation 2025

‌RELIANCE INSURANCE COMPANY LIMITED

Corporate Briefing Session 2025

‌About Us

Reliance Insurance Company Limited (RICL) was incorporated in 1981 with a Share Capital of Rs.2.5 Million by two prominent industrialist groups in Pakistan, Al-Noor Group and Amin Bawany Group. Al-Noor Group, was led by (Late) Mr. Ismail H. Zakaria, and Amin Bawany Group, founded by (Late) Mr. Mohammed Amin Ahmed Bawany, were known for their successful implementation of numerous industrial and commercial projects. Mr. Irfan Zakaria Bawany was unanimously reelected Chairman of Reliance Insurance Co. Ltd, in the Board of Directors meeting held on 28th August 2025 for a further term of three years. Mr. Bawany is associated with Reliance Insurance since 1991.

RICL has earned a strong reputation and is recognized as one of the most reputable and distinguished names in the sector. Its Head Office is in Karachi, Pakistan, and boasts an extensive and dynamic branch network covering major cities and towns throughout the country. This widespread presence ensures that the company can provide prompt service to its customers, no matter where they are located.

‌Our Vision & Mission Statement

‌Irfan Zakaria Bawany

Chairman

Muhammad Omar Bawany

Director

Ahmed Ali Bawany Director

Noor M. Zakaria Director

Naeem Ahmed Shafi Director

Zia Zakaria Director

Tasneem Yusuf Director

Muhammad Patel Director

Jahangir Adam Director

Our Board of Directors

‌Management (Team RICL)

The management of Reliance Insurance Company Limited is fully cognizant of the evolving challenges within the industry and has formulated a comprehensive, forward-looking strategy focused on sustainable operational growth. This strategy places strong emphasis on profitability, disciplined financial management, and the delivery of consistent and reasonable returns to its valued shareholders.

The Company's operations are overseen by a highly experienced and professional management team. Reliance Insurance is widely recognized as one of the best-managed companies in the market, reflecting its strong governance standards and operational excellence. The management team is led by Mr. A. Razak Ahmed, Chief Executive Officer & Managing Director, FCII (Chartered Insurer). He is supported by a seasoned senior management team with deep industry expertise and a proven track record of driving performance, innovation, and long-term value creation.

• A. Razak Ahmed - Chief Executive & Managing Director

• Ghulam Haider - Chief Financial Officer

• Faraz A. Razak - Company Secretary & Comp. Officer

• M. A. Hannan Shadani - SVP - Underwriting Conventional

• Najmullah Khan - SVP - Head of Takaful

• Ghulam Mujaddid - Vice President

• Saleem Memon - Assistant Vice President- Investment

• M. Masood Ali - Assistant Vice President- IT

• Muhammad Siddique - Assistant Vice President (Claims)

• Abdul Rahim Patni - Assistant Vice President Reinsurance

‌Company History

Reliance Insurance Company Limited (RICL) commenced operations in 1981 with an initial paid-up share capital of Rs. 2.5 million. Since inception, the Company has demonstrated consistent and sustainable growth, culminating in a strong and resilient financial position. As of today, RICL's Authorized Capital stands at Rs. 1.5 billion, while its paid-up share capital amounts to Rs. 1.0047 billion, reflecting a solid and well-capitalized balance sheet.

The Company's financial strength is further reinforced by a General Reserve of Rs. 400 million and total assets of Rs. 3.677 billion as at September 30, 2025. This robust capital base underscores RICL's financial stability, operational resilience, and capacity to support future growth. The Company remains committed to further strengthening its capital structure in alignment with its expanding business operations and long-term strategic

objectives, thereby ensuring sustained value creation for its stakeholders.

2023

Authorized Capital Rs.1

billion

Paid up Capital Rs.665 million

2024

Authorized Capital Rs1 billion

Paid up Capital Rs.665

million Reserve Rs.907 million Assets Rs.3.19 billion

1981

Authorized Capital Rs.15 million.

Paid up Capital Rs.2.5

million

1982

Assets 10 million

Reserve Rs.0.15 million

Reserve Rs.557 million Assets Rs.2.57 billion

30thSeptember 2025

Authorized Capital 1.5 billion

Paid up Capital Rs.1.004

billion Reserve Rs.968 million Assets Rs.3.677 billion

‌Our Services

RICL offers a comprehensive portfolio of insurance products and services, underwriting a broad spectrum of insurance classes to address diverse risk management needs. Through its robust underwriting capabilities and customer-focused approach, the Company provides tailored risk coverage solutions designed to protect individuals, businesses, and institutions across multiple sectors. These offerings include:

In May 2016, RICL launched its Window Takaful Operations (WTO) within the framework of a conventional insurance company, under the supervision of a qualified and certified Sharia Scholar. This initiative enables RICL to offer Shariah-compliant Takaful products alongside its conventional insurance offerings seamlessly.

Fire & Allied

Cargo, Marine

Vehicles.

Perils, Marine

Export, Motor

Burglary, and Cash in Safe or Transit

Personal & Group Accident, Workmen's Compensation

Traditional insurance products Non-Traditional insurance products

Machinery Breakdown, Loss of Profits, Terrorism and Contractor All

‌Our Products

‌RICL has consistently demonstrated strong capacity to meet insured requirements across a broad spectrum of general insurance classes. The company's underwriting strength enables it to effectively manage diverse portfolios while maintaining regulatory and market discipline.

In addition to treaty support, RICL maintains robust back-to-back facultative reinsurance arrangements with foreign and domestic insurance and reinsurance companies holding strong "A" or equivalent financial strength ratings.

RICL recognizes the critical role of reinsurance in ensuring financial stability and sustainable risk management. The company maintains well-structured reinsurance treaty arrangements with reputable foreign and local reinsurers of global standing. These partnerships enhance RICL's overall risk framework.

Underwriting Capacity

writing

Capacity

Reinsurance

A significant portion of RICL's underwriting capability is secured through well-structured automatic treaty reinsurance arrangements. These treaties provide reliable and predefined capacities, allowing the company to underwrite policies with confidence.

Through these facultative arrangements, RICL is able to secure substantial additional capacities on a case-by-case basis, enhancing its ability to underwrite large or specialized risks while maintaining sound risk management.

RICL's notable reinsurance partners include internationally recognized reinsurers such as Swiss Re, PRCL, Peak Re, Trust Re, and Misr. These reinsurers possess strong financial strength and technical expertise. Their support provides security, continuity, and confidence across RICL's portfolio of business.

‌IFS Rating Reliance Insurance's strong financial position and

prudent management practices have been

recognized by the Pakistan Credit Rating Agency (PACRA). PACRA recently upgraded the company's Financial Strength Rating from "A+" to

reflecting its robust capital base, sound risk management, and strong ability to meet policyholder obligations. This upgrade underscores Reliance Insurance's growing financial strength and stability in the market.

Similarly, VIS Credit Rating Company Ltd has also upgraded Reliance Insurance's Financial Strength Rating to

reflecting the company's solid financial performance and

operational prudence, and further highlighting its

continued financial resilience and strong capacity

to honor contractual commitments.

‌Our Network

RICL's Head Office is located in Karachi, Pakistan, supported by an extensive and dynamic network of branches across major cities and towns nationwide. This strong geographical presence

enables the Company to deliver timely, efficient, and consistent

services to its customers, regardless of their location, reinforcing its commitment to accessibility and operational

excellence. Sindh

KPK

1 Branch

Punjab 17 Branches

7 branches

‌Economy Overview

• According to the latest IMF projections, Pakistan's economy is expected to record moderate GDP growth of approximately 3.2% in FY2025-26, reflecting an improvement in macroeconomic conditions and a gradual recovery in key sectors such as agriculture and industry, although this remains below the Government's own target of 4.2% for the year. The Government of Pakistan has set an official growth target of 4.2% for FY2025-26 in its federal budget, demonstrating its policy commitment to strengthening economic performance. Meanwhile, the World Bank projects growth at around 3.0% for the same period, noting that recent floods and other structural challenges have tempered the outlook.

• On December 15, 2025 the Monetary Policy Committee (MPC) of the State Bank of Pakistan decided to reduce the key policy rate by 50 basis points, effective December 16, 2025, bringing it down to 10.5%. This decision was made as inflation remained within the target range of 5-7%. The cut represents a cumulative reduction of 250 basis points over 2025, aimed at supporting sustained economic growth.

• Economic momentum appears resilient, with LSM output up 4.1% y/y in Q1-FY26 and robust activity in automobiles, cement, and machinery imports. Wheat production is likely to exceed targets, supporting overall growth. The current account deficit stands at $0.7 billion (July-October), while remittances and

  SBP's FX have pushed reserves above $15.5 billion, expected to cross $17.8 billion by June 2026. Export pressures persist amid global headwinds, but lower oil prices may help contain import growth. Overall, economic fundamentals remain broadly positive.

  ‌Insurance Industry Overview

• In 2024, Pakistan's non-life insurance sector posted a GWP of PKR 243 billion, up 7% from PKR 227 billion in 2023. Private insurers dominated with 91% of premiums, while public sector insurers accounted for 9%. The conventional segment reached PKR 212 billion from Rs.202 billion, showing steady growth, and the Takaful segment rose to PKR 31 billion from PKR 25 billion, reflecting strong demand for Shariah-compliant solutions. The overall performance indicates a stable, steadily growing market, with conventional insurance maintaining its lead and Takaful showing accelerating adoption.

• The Fire and Property Damage segment remained the largest contributor to the non-life insurance portfolio, accounting for 32% of total premiums at PKR 77 billion, up from PKR 71 billion in 2023. This was followed by Motor Insurance at 24% (PKR 58 billion), Engineering Insurance at 14% (PKR 33 billion), and Marine Insurance at 10% (PKR 25 billion). Premiums from dedicated personal lines, including home and household contents, individual health, and travel insurance, continued to remain modest, contributing only 1.4% of the total premiums in 2024.

• Claims paid by non-life insurance industry stood at Rs. 92 billion in the year 2024 compared to Rs. 84 billion last year. Highest claims were paid in the category of Motor insurance at 36% (Rs. 33 billion), followed by Fire and Property Damage at 22% (Rs. 21 billion).

• In 2024, Sindh led the non-life insurance market, contributing 50% of the total gross premiums. Punjab followed with a 37% share, while Khyber Pakhtunkhwa, Balochistan, Gilgit-Baltistan, and Azad Jammu & Kashmir each accounted for 4%. The Federal region comprised the remaining 9% of the market.

‌Nine months financial position 2025 vs 2024

Rupees in '000

‌Twelve months financial position 2024 vs 2023

Rupees in '000

‌Graphical Presentation P & L

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Gross

Premium / Contribution

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Taxation

‌Graphical Presentation Balance Sheet

793971

1620546

952596

1313687

1888864

3677325

2576080

3185105

1972742

1572431

1222421

1116479

Sep.25 Dec.24 Dec.23 Dec.22

Sep.25 Dec.24 Dec.23 Dec.22

Sep.25 Dec.24 Dec.23 Dec.22

Investment Shareholder Equity Assets

‌Forward-looking

With inflationary pressures easing, the reduction of the discount rate from 13% to 10.50% signals a more supportive macroeconomic environment. Lower interest rates are expected to reduce financing costs, encourage investment activity, and strengthen overall market confidence. Key economic indicators have shown gradual improvement, including moderating inflation and more stable financial conditions. Nevertheless, achieving sustainable economic growth continues to face challenges, particularly amid global uncertainties and ongoing market volatility.

As we move into 2026, the Company remains cautiously optimistic. Our strategy will focus on expanding the business while maintaining disciplined and prudent underwriting practices. This balanced approach is critical to safeguarding profitability and managing risk effectively. We will continue to emphasize underwriting quality over volume, while also benefiting from improved investment income, to deliver stronger and more sustainable results.

‌THANK YOU

Q & A