Habib Insurance Company Limited (“Habib Insurance” or “the Company”) was incorporated as a public listed company in 1942 and is listed on the Pakistan Stock Exchange (PSX).

The Company is part of the House of Habib, one of Pakistan’s established business groups. It commenced operations as a life and general insurer in Bombay in 1942 and relocated its headquarters to Karachi in August 1947. Following the nationalisation of life insurance in 1972, the Company continued as a non-life insurer.

The Company underwrites conventional insurance and operates a window takaful business across fire and property, marine and transport, motor, accident and health, and miscellaneous segments. Its business is supported by established corporate and financial-sector relationships, alongside distribution through brokers and aggregators. Management reported a network of 17 branches in October 2026.

The House of Habib holds approximately 70.8% of the Company, primarily through individuals and trusts. while the remaining 24.18% is held by the general public.

The ownership structure is supported by the longstanding association of the sponsoring family with the Company. The sponsors’ presence across established businesses provides continuity of ownership and strategic direction.

The sponsors bring diversified business experience through the House of Habib's presence in several established businesses, including Indus Motor Company, Thal Limited, Agriauto Industries, Shabbir Tiles & Ceramics, Habib Metropolitan Bank and Habib-Metro Pakistan. The Group also has interests in auto parts manufacturing, packaging and energy-related businesses. This diversified business presence provides the sponsors with exposure to varied industries and supports the Company's association with an established business group.

The Company benefits from its association with the House of Habib, a diversified business group with a heritage spanning over 185 years and an established presence across key sectors of Pakistan's economy. The Group's businesses collectively generate turnover in excess of USD 1.8bln, with total net assets exceeding USD 1bln, and contribute approximately 1% to Pakistan's GDP. Its presence across automotive, auto parts, building materials, energy, packaging and real estate provides a diversified business base and reflects substantial operating scale. The Group's established market presence, financial standing and longstanding business legacy provide institutional strength and support the Company's association with a recognised business group. However, the rating assessment remains primarily based on the Company's standalone financial profile, and external support has not been assumed.

The Board is chaired by Mr. Mansoor G. Habib and comprises eight directors, including three independent directors. The Board’s composition combines sponsor representation, financial-sector experience and independent oversight.

The Board comprises members with diverse experience across international banking, financial services, capital markets, insurance brokerage, audit and corporate management. Mr. Mansoor G. Habib serves as Chairman, having assumed the position in December 2025 after previously serving as a Non-Executive Director. Among the other family-associated directors, Mr. Muhammad Hyder Habib brings close to four decades of international banking experience, including his tenure as President of Habib Bank AG Zürich; Mr. Qumail R. Habib serves as Executive Director of Bank AL Habib Limited; Mr. Aun Muhammad Habib has over 20 years of business experience and has been CEO of Greenshield Insurance Brokers LLC, Dubai, since 2000; while Ms. Zahida Habib brings over 35 years of senior banking experience. The Board's three Independent Directors further strengthen its professional diversity: Mrs. Ujala Mir Masood brings experience in audit, finance and service design, including roles at Habib Bank Limited and PwC Canada; Mr. Shahid Ghaffar has held senior positions at National Investment Trust, HBL Asset Management and the SECP, with extensive capital-market experience; and Mr. Adil Nazim Haji brings expertise in business operations, strategic planning and corporate management. The Board is led by CEO Mr. Murtaza Hussain, who has been associated with the Company since 2003 and previously served as Company Secretary and CFO.

The Board is supported by committees covering audit, investment, and ethics, nomination, human resources and remuneration. The Board's oversight includes financial reporting, investment decisions and strategic matters. The CY2025 annual report states that the Board's overall performance was assessed as generally satisfactory and during the year four Board meetings were held.

Grant Thornton Anjum Rahman, SBP category A, serves as the Company's external auditor and issued an unqualified opinion on the CY2025 financial statements. The internal audit function is outsourced to BDO Ebrahim & Co. The available QCR listing reflects a Satisfactory rating for Grant Thornton Anjum Rahman, valid until January 29, 2026.

The Company maintains defined reporting lines, with departmental heads reporting to the CEO and the CEO reporting to the Board. Its key functions include underwriting, reinsurance, claims, risk management and compliance, sales and marketing, finance, and information technology. These functions support the Company's core insurance operations, risk oversight and financial management.

Mr. Murtaza Hussain serves as CEO and has been associated with the Company since 2003. Previously serving as CFO and Company Secretary, he brings over two decades of financial and insurance-sector experience and is a Fellow of ACCA. Mr. Muhammad Asif serves as CFO and Company Secretary and has over 21 years of cross-sector experience, with expertise in financial management, regulatory compliance and credit policies. He is a Chartered Accountant (CA) with a professional background in finance and corporate affairs.

Habib Insurance has management committees covering underwriting, reinsurance and co-insurance, claims settlement, and risk management and compliance. The Board oversees investment-related decisions, with support from the finance team and an in-house actuary. These committees provide oversight of key operational, risk and investment matters.

The Company uses a General Insurance System (GIS) provided by Sidat Hyder to generate business reports. The system supports routine monitoring of business activity and management information requirements.

Habib Insurance operates a centralised claims management process, with approval limits differentiated by claim size. Claims below PKR 0.1mln are approved by branch managers, while larger claims are referred to head office. Claims exceeding PKR 1mln require CEO approval.

The Board’s Investment Committee oversees investment decisions, with support from the finance team and an in-house actuary. Management has confirmed that the HR Committee approved the recruitment of a dedicated research analyst, targeted before the end of CY2026, to formalise investment research and portfolio evaluation. Implementation remains pending.

The Company maintains policies to identify, assess and monitor key risks, establish appropriate limits and controls, and review risk exposures in light of changing market conditions and business activities. Continued strengthening of receivables monitoring and investment oversight remains relevant to the risk management framework.

Pakistan's general insurance industry recorded aggregate gross premiums and takaful contributions of approximately PKR 133.6bln for the six months ended June 2026 (6MCY26). Net premium revenue stood at PKR 77.0bln, against net claims of PKR 40.9bln, translating into an aggregate loss ratio of approximately 53.2%. The industry's expense ratio stood at 38.5%, resulting in a combined ratio of 91.7%, reflecting an overall profitable underwriting performance. Industry underwriting profit amounted to PKR 10.2bln, while investment income contributed PKR 17.8bln, supporting aggregate profit before tax of PKR 26.1bln. The industry's investment portfolio, including investment properties and bank deposits, stood at approximately PKR 391.1bln as of June 2026. Despite the sector's earnings potential and sizeable investment base, low insurance penetration, price-led competition and exposure to catastrophe losses continue to shape the industry's growth and profitability.

Habib Insurance remains a medium-tier player in the general insurance industry, with a market share of approximately 1.7%, based on gross premiums and takaful contributions of PKR 2.3bln as at 1HCY26. Its market position is supported by longstanding corporate relationships and business sourced through financial-sector clients, brokers and aggregators.

During 9MCY26, consolidated GPW increased to PKR 4.09bln, compared with PKR 3.00bln in 9MCY25, reflecting growth of approximately 36%. Management reported a full-year GPW target of PKR 5.5bln, with fire and property remaining a key contributor to recent growth, alongside corporate and financial-sector relationships. Sustaining business expansion while maintaining underwriting discipline and adequate risk selection remains important.

During 9MCY26, the Company recorded a consolidated underwriting profit of PKR 146mln, compared with an underwriting loss of PKR 95mln in 9MCY25. Accordingly, the consolidated combined ratio improved to 93.3%, compared with 101.1% at June 2026, indicating a turnaround in technical performance. Profit after tax increased to PKR 429mln during 9MCY26, compared with PKR 158mln in the corresponding period last year. The improvement reflects a stronger contribution from underwriting operations alongside higher investment earnings. Sustaining this performance will depend on continued improvement in claims experience, pricing discipline and expense management.

The Company's investment portfolio stood at PKR 3.03bln as at September 2026, compared with PKR 3.80bln as at September 2025, reflecting a contraction of approximately 20.4%. Despite the smaller portfolio, investment income increased to PKR 479mln during 9MCY26 from PKR 354mln in the corresponding period, representing growth of 35.3%. Accordingly, investment yield improved to 18.5% from 13.1%. Investment income remained a significant contributor to overall earnings, supporting profitability alongside the improvement in underwriting performance. Consistency of returns, prudent asset allocation and effective portfolio oversight remain important to sustaining this contribution.

Management's strategy remains focused on corporate business, selected insurance segments and distribution through brokers and aggregators. During 9MCY26, consolidated GPW increased by 34.8%, while net insurance premium and takaful contribution grew by 44.5%, indicating higher business volumes alongside improved retention. At September 2026, consolidated insurance-related assets stood at PKR 5.09bln against insurance-related liabilities of PKR 2.93bln, resulting in a commercial efficiency ratio of approximately 1.7x (December 2025: 1.3x). The increase reflects a higher level of insurance-related assets relative to associated liabilities and highlights the continued importance of timely recoveries. The management expenses declined to 34.5% of net premium and takaful contribution from 45.3%. The planned recruitment of a dedicated research analyst is intended to strengthen investment assessment and portfolio evaluation. Sustaining growth will depend on preserving underwriting discipline, controlling operating costs and improving the timely collection of premiums and reinsurance receivables. The management has assigned dedicated teams to pursue outstanding premiums, with senior management oversight.

Claims outstanding days increased to 189 days at September 2026 from 169 days at December 2025, while days premium outstanding also increased to 146 days from 105 days. Conversely, receivables days from other insurers improved to 23 days from 50 days. The overall position indicates longer collection and settlement cycles in certain areas, warranting continued monitoring of claims settlement and receivables realisation.

The Company maintains reinsurance arrangements with established reinsurers, including Malaysian Re, Labuan Re, Saudi Re, PRCL, Singapore Re and Swiss Re. Management identified Hannover Re as the lead reinsurer during the October 2026 meeting. The programme includes surplus, quota-share and excess-of-loss arrangements, supplemented by facultative placements where required. Timely recovery of reinsurance balances remains important, particularly given the level of outstanding receivables.

The liquidity coverage ratio, calculated as liquid assets less borrowings relative to outstanding claims including IBNR, stood at 1.5x at September 2026, compared with 1.7x at December 2025. While the investment portfolio provides a source of liquidity, the moderation in coverage, alongside the scale of insurance-related receivables, underscores the importance of timely collections, reinsurance recoveries and maintaining adequate liquid resources. Consolidated borrowings also increased to approximately PKR 313mln at September 2026, compared with PKR 14mln at December 2025, further highlighting the importance of prudent liquidity management.

Shareholders' equity stood at PKR 2.34bln at September 2026, compared with PKR 2.37bln at December 2025. During the period, the Company's paid-up share capital increased to PKR 1.0bln from PKR 619.4mln, strengthening its permanent capital base. The Board has also endorsed a direction towards retaining annual profits to support internal capital generation. The extent of further capital accretion remains contingent on sustained profitability and implementation of the retention direction. Given the phased regulatory minimum capital requirement of PKR 2bln by 2030, continued capital formation and maintenance of adequate buffers remain important.