Alfalah Insurance Company Limited ("Alfalah Insurance" or "the Company") was incorporated in December 2005 as a public unlisted company.

The Company operates as part of the Abu Dhabi Group, a UAE-based conglomerate with diversified investments across the financial services and telecommunications sectors, with a particularly significant presence in Pakistan. The Group established its foothold through a strategic investment in Bank Alfalah in 1997. Building on this, it expanded into the non-life insurance segment in September 2006 through the establishment of Alfalah Insurance, reflecting the Group’s long-term commitment to Pakistan’s financial services landscape.

Alfalah Insurance underwrites business across both Conventional and Window Takaful operations, with conventional accounting for approximately 85% of total business. Within these domains, the Company offers a diversified product slate encompassing fire and property, motor, marine, accident and health, and miscellaneous insurance. The Company maintains a nationwide operational footprint through a network of thirteen branches, supporting broad market access and customer servicing capabilities.

The majority shareholding (~60%) is held by the Abu Dhabi Group. Within this, H.H. Sheikh Nahayan Mabarak Al Nahayan holds an approximate 35% stake, representing the largest individual shareholding, with the remaining Abu Dhabi Group-affiliated interests accounting for the balance. The remaining ownership is held by institutional investors, including Bank Alfalah Limited (~30%) and M/s Electromechanical Co. LLC (~10%).

The ownership structure reflects a high degree of stability, underpinned by the enduring commitment of a financially robust and well-established sponsor group. The controlling stake held by the Abu Dhabi Group provides long-term strategic continuity and implicit financial support to the Company.

The sponsoring group maintains a diversified international investment portfolio spanning multiple geographies, including Bangladesh, Iran, Uganda, the Republic of Congo, and the broader Middle East region. Its substantial exposure to Pakistan’s financial and telecommunications sectors underscores deep market expertise and a well-grounded understanding of the local operating environment.

The Company benefits from strong financial backing through its association with the Abu Dhabi Group and its strategic linkage with Bank Alfalah Limited, which remains a key institutional shareholder. This affiliation provides implicit financial support and meaningfully enhances the Company’s overall financial flexibility.

The Board has been expanded to ten members, including the CEO, following the addition of three independent directors effective September 2025. The Board comprises nine Non-Executive Directors and one Executive Director. Representation is drawn from the Abu Dhabi Group (four members) and Bank Alfalah (two members), with three newly appointed independent directors enhancing objectivity and oversight. The Board continues to reflect gender diversity, in line with good governance principles.

The Board is chaired by H.H. Sheikh Nahayan Mabarak Al Nahayan, a prominent member of the Abu Dhabi Group and a serving cabinet member in the UAE, holding the portfolio of Minister of State for Tolerance and Coexistence. The three independent directors bring diverse professional expertise across financial services, risk, and corporate governance, strengthening the Board’s overall composition and effectiveness.

The Board’s effectiveness is reinforced through a well-structured committee framework, comprising the Strategy, Audit, Ethics & Human Resource, and Investment Committees. These specialized forums facilitate focused oversight across key functional areas, ensuring that strategic, operational, and risk-related matters receive adequate Board-level attention.

The Company’s external auditor, A. F. Ferguson & Co., has expressed an unqualified opinion on the financial statements for the year ended CY25, affirming the Company’s adherence to applicable financial reporting standards and reflecting sound financial reporting practices.

Alfalah Insurance operates through well-defined functional departments, including Commercial, Underwriting, Reinsurance, Claims, Finance, Human Resources, Digital, IT, Risk Management, and Compliance. All departmental heads report directly to the CEO, who in turn reports to the Board. The Internal Audit function maintains independence by reporting directly to the Audit Committee, thereby safeguarding the integrity of the oversight mechanism.

The Company is led by Mr. Khurram Hussain, CEO, who brings over three decades of experience in the financial services sector, including insurance. His expertise spans strategy formulation, organizational development, and business expansion. He is supported by Mr. Adnan Waheed (CFO), who possesses nearly two decades of relevant experience. The broader senior management team is well-seasoned, with many members having long tenures with the Company, ensuring institutional continuity and operational depth. Strategic hires at senior levels — including a Head of Digital — have further strengthened the management bench as part of the ongoing transformation programme.

Management oversight is reinforced through a robust committee structure, including the Management Committee (ManCom), Reinsurance & Re-Takaful and Coinsurance Committee, Claims Settlement Committee, Underwriting Committee, and Risk Management & Compliance Committee. These forums convene on a regular basis to deliberate on operational performance, risk matters, and strategic direction, ensuring timely and informed decision-making.

The Company utilizes a General Insurance System (GIS), an integrated, real-time platform supporting both centralized and decentralized operations. The system ensures data integrity, maintains comprehensive audit trails, and generates customized management reporting. It incorporates strong internal controls, including policy locking and centralized posting mechanisms. A comprehensive digital transformation programme — encompassing customer portals, workshop portals, and server portals — is currently underway and is expected to be delivered by end-CY26.

Alfalah Insurance follows a decentralized claims settlement framework, with authority limits defined through individual authorization matrices. The Claims Department manages all non-health claims and actively monitors outstanding claims to ensure timely resolution. Health claims are managed separately given the volume-driven nature of the segment.

The Company operates under a formal Investment Policy Statement (IPS), approved by the Board and reviewed annually. Investment decision-making authority is delegated to the CEO and CFO within clearly defined parameters, ensuring disciplined portfolio management aligned with the Company’s risk appetite and liquidity objectives.

Alfalah Insurance has established a comprehensive Risk Management and Compliance framework through documented guidelines, outlining roles and responsibilities across all levels — from the Board to operational staff. The framework defines protocols for underwriting, reinsurance, and overall risk governance, thereby supporting a robust and proactive risk management environment.

Pakistan’s general insurance industry recorded total Gross Premium Written (GPW) of approximately PKR 170 billion during the nine months ended September 2025 (9MCY25), compared to approximately PKR 171 billion in the corresponding period of the prior year (9MCY24), reflecting a marginal year-on-year decline of approximately 0.58%. The industry’s underwriting performance witnessed a notable deterioration, with underwriting results declining by approximately 50% year-on-year to approximately PKR 4.8 billion (9MCY24: ~PKR 9.6 billion). Concurrently, investment income contracted by approximately 16% year-on-year, primarily attributable to the monetary easing cycle, collectively exerting considerable pressure on overall profitability across the general insurance sector.

Against an industry backdrop of modest growth, Alfalah Insurance delivered a notably stronger performance, improving its market share to ~3.17% in CY25 (CY24: ~2.4%). This improvement positions the Company among the select group of private sector general insurers to have registered meaningful market share gains, reflecting the efficacy of its targeted growth strategy and expanding distribution reach.

The Company generated GPW primarily from its Conventional business, supplemented by Window Takaful. During CY25, the Company underwrote a gross premium of ~PKR 7.0bln (CY24: ~PKR 5.23bln), registering a significant growth of ~33.8% — the second-highest among private sector general insurers and substantially above the industry average of ~9–10%. This performance was underpinned by broad-based growth across core segments, with health registering the highest volumetric expansion, followed by motor and marine. Net Premium Revenue grew ~53%, from ~PKR 2.2bln to ~PKR 3.3bln, reflecting both top-line growth and improved net retention. Going forward, GPW is expected to maintain an upward trajectory, supported by new distribution channels and product initiatives, albeit at a moderated pace as the base normalizes.

During CY25, underwriting performance turned negative, with an underwriting loss of ~PKR 0.10bln (CY24: profit of ~PKR 0.15bln). This was primarily attributable to a notable increase in net claims (~PKR 2.75bln vs. ~PKR 1.60bln), largely driven by the onboarding of a large group health account, and higher management expenses (~PKR 1.04bln vs. ~PKR 0.79bln) reflecting a deliberate, board-approved strategic investment in organizational transformation. Consequently, the combined ratio widened to ~102.8% (CY24: ~94.1%). Despite this, overall profitability remained supported by robust investment income, with PAT at ~PKR 0.69bln (CY24: ~PKR 0.76bln). The current expense profile is transitional in nature; operational leverage is expected to improve as strategic initiatives mature and revenue benefits materialize.

Investment income registered growth of ~17.5%, reaching ~PKR 1.18bln in CY25 (CY24: ~PKR 1.00bln). This was primarily driven by revaluation gains on the investment portfolio (~PKR 0.68bln) and stable income from government securities. A proactive portfolio repositioning in early CY26 — involving a partial equity liquidation ahead of anticipated market volatility — yielded additional gains and underscored management’s disciplined approach to investment risk. The investment portfolio continued to serve as a critical stabilizer, effectively offsetting underwriting pressure and sustaining overall profitability.

The Company’s medium-to-long-term strategy is focused on achieving a top-tier market position within the general insurance sector. Key pillars include portfolio recalibration towards higher-margin classes, expansion of bancassurance and financial institution partnerships, deepening of digital distribution, and continued investment in talent and technology. Management is focused on prudently growing the non-captive market while leveraging the strengthened branch network and sales team. These strategic levers are expected to progressively enhance underwriting sustainability and overall earnings quality.

Claims efficiency moderated during CY25, with Insurance & Takaful Claims to Liquid Investments increasing to ~82.7% (CY24: ~45.3%), reflecting the significant rise in health claims volumes following the onboarding of a large group account. Management has indicated that the claims increase is volume-driven and broadly commensurate with premium growth in the health segment, rather than indicative of structural deterioration in claims management.

The Company maintains reinsurance arrangements with a panel of reputed internationally rated reinsurers, including Swiss Re, SCOR Re, Lloyd’s of London, and Pakistan Reinsurance Company Limited. The panel remains sound and provides adequate risk mitigation and capacity support across relevant lines of business. Health insurance is retained entirely on a net basis, consistent with industry practice given the frequency-based nature of the class.

Liquidity indicators showed some moderation, with liquid assets to net premium declining to ~1.4x (CY24: ~1.8x), reflecting increased business volumes and higher claims outflows. Nonetheless, overall liquidity remains adequate, supported by a sizeable liquid investment base. Approximately 90% of the fixed income portfolio matures within one year, providing meaningful flexibility to meet claim obligations and operational requirements.

The Company’s equity base strengthened to ~PKR 3.93bln in CY25 (CY24: ~PKR 3.56bln), reflecting ongoing profit retention. Paid-up capital has been increased to ~PKR 2.0bln, with shareholders having committed to SECP-aligned capital milestones in a phased manner, ensuring compliance with the revised Minimum Capital Requirement for general insurance entities. This capital strengthening, alongside the expanded equity base, provides a solid foundation to support the Company’s growth ambitions.