Adamjee Life’s investment portfolio is delivering, but for how long?

Key takeaways

• ALIFE’s profits surged 71% YoY in CY24 to PKR 1.6 billion (EPS: PKR 6.22).
• Gross premiums jumped 33% YoY, reaching PKR 31 billion—driven mainly by Bancassurance.
• Investment income soared 48% YoY to PKR 26.8 billion.
• Strategic shift away from single-premium products towards regular premiums is underway.
• Assets grew to PKR 116 billion, with PKR 106 billion in investments.
• Company faces IFRS-17 compliance challenges heading into 2026.

Profits climb, driven by core and investment gains

Adamjee Life Assurance Company Ltd. (ALIFE) posted an impressive 71% YoY growth in profits in CY24, with net income rising to PKR 1.6 billion from PKR 0.9 billion in CY23. EPS rose to PKR 6.22, underlining improved operational performance and healthy investment returns.

The growth was supported by a 33% increase in gross premium income, which rose to PKR 31 billion. The bulk of this revenue came from Bancassurance, which remains ALIFE’s primary business vertical through key partnerships with MCB Bank and HMB Bank.

Diversifying revenue streams

While Bancassurance remains dominant, ALIFE is also scaling its Direct Distribution, Insurtech & Micro Insurance, and Group Life segments. Market share stands at:

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• 15.3% in Bancassurance
• 10% in Direct Distribution
• 7% in Group Life

To reduce over-reliance on single-premium products, management aims to cut single premium income from PKR 15 billion in CY24 to PKR 10 billion in CY25, and instead grow regular premium products by 22% YoY.

Investment portfolio powers earnings surge

Investment income jumped by 48% YoY, reaching PKR 26.8 billion, providing strong support to the bottom line.

The portfolio, now valued at PKR 106 billion, is well-diversified:

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• PKR 43 billion in PIBs and Ijara Sukuks
• PKR 37 billion in T-Bills
• PKR 15 billion in equities
• PKR 7.4 billion in mutual funds
• PKR 3.5 billion in TFCs

ALIFE’s investment strategy offers resilience against market volatility and supports sustainable growth.

Margins and challenges

Despite strong topline and investment income growth, underwriting margins slightly contracted. The net claims ratio stood at 80.4%, with commission expenses at 4.7% of net premiums. ALIFE’s underwriting margin dropped to 10.0%, and is expected to edge lower to 9.7% in CY25 due to falling interest rates.

Another pressing issue: IFRS-17 implementation. The company anticipates challenges in meeting the Jan 2026 deadline due to technical resource shortages.

Balance sheet highlights

• Total assets: PKR 116 billion
• Total liabilities: PKR 111 billion
• Fixed assets surged nearly 3x due to IFRS-16 lease capitalization
• Lease liabilities increased to PKR 661 million from PKR 103 million

Despite growing obligations, ALIFE remains financially sound with adequate reserves and a forward-looking investment strategy.

A solid year with smart repositioning

Adamjee Life’s CY24 performance reflects a company maturing into a more diversified and efficient life insurer. By reducing reliance on single-premium products and expanding its footprint across distribution channels, ALIFE is aiming for long-term stability.

With strong investment income, improved premium flows, and a strategic asset allocation, the outlook remains promising. However, success will hinge on effective execution of IFRS-17 and navigating margin pressures from interest rate cuts.

For investors seeking exposure to Pakistan’s insurance sector, ALIFE’s performance offers a compelling case.

Source: AKD Securities Ltd

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →