East West Insurance Company Limited (“East West” or “the Company”) was incorporated as a public limited company in 1983 and is listed on PSX. The Company’s registered office is in Quetta, while its head office is in Karachi.

Late Mr. Unus Khan, with work experience in the insurance segment across the Middle East, founded East West in 1983. Initially, the Company operated as a general insurer in the conventional business only. Later, East West commenced Window Takaful Operations (WTO) in May 2018 in accordance with the SECP Takaful Rules, 2012. Today, the Company’s operations are carried out through principal offices located in the South, Punjab, and North of the country. The Company’s client base is wholly non-captive, reflecting a diversified customer base sourced independently across its operating segments.

Currently, the Company is engaged in conventional and takaful general insurance business, supported by a nationwide network of 65 offices comprising 3 principal, 9 regional, 23 agency and 30 branch offices. Its operations span Sindh, Punjab, Khyber Pakhtunkhwa, Balochistan, Azad Jammu & Kashmir and Gilgit-Baltistan. The Company’s business is further supported by dedicated Corporate, Engineering, Health and Agriculture Divisions, alongside its Window Takaful Operations (WTO).

The shareholding is divided equally among the four sons of Late Mr. Unus Khan. Overall, 69% of the Company’s shareholding is held by the sponsoring family through individuals (42%) and East West Holding Company (27%). The remaining 31% shares are held by various other individuals and institutions.

The sponsoring family has strengthened its shareholding structure by creating a holding company that consolidates the family’s overall stake in the business. Moreover, the induction of the third generation into the Board and management further fortifies the ownership’s stability.

The sponsors bring several decades of experience in the insurance sector and have witnessed numerous business cycles over time. The sponsors possess the requisite skills and knowledge to effectively steer the Company.

The sponsoring family holds an adequate financial footing to support the Company, if need be, going forward. This was evident in the sponsors’ equity injection of PKR 800mln during CY24, while profits have since been capitalized through bonus shares, increasing paid-up capital to PKR 3,096mln as of 6MCY26 (CY25: PKR 2,815mln).

The overall control of the Company lies with the nine-member Board of Directors (BoD). The BoD comprises four Independent Directors and five Directors representing the sponsoring family. While the BoD maintains a meaningful level of independence, it remains dominated by the sponsoring family. The Board has recently been strengthened by the induction of an Independent Director with over 35 years of experience in insurance and reinsurance.

Mr. Javed Yunus is the BoD Chairman and brings over five decades of experience in insurance, marketing and management, with a 40-year association with the group. Mr. Naved Yunus serves as the Managing Director and Chief Executive Officer (CEO) with nearly four decades of work experience. Among the Independent Directors, Mr. Ahsan Alvi has been associated with the insurance segment since 1987, Mr. Shahzad Farooq Lodhi brings nearly four decades of experience in the insurance industry, Mr. Ayaz Hussain Gad has over 35 years of experience in insurance, reinsurance and business development, and Mr. Aman Shah brings experience in corporate governance, business management, real estate and SME development. The Board possesses a diverse set of expertise and skillsets.

The BoD is assisted by committees covering Audit, Ethics, Human Resource & Remuneration, Investment, and Nomination. During CY25, the BoD met four times. Committee meetings are frequently held, and minutes are adequately maintained.

External Auditors, M/s Crowe Hussain Chaudhury & Co., Chartered Accountants, issued an unqualified opinion on the financial statements for CY25. The firm was QCR rated and placed in Category ‘A’ of the SBP’s panel of auditors. Subsequently, the Company appointed M/s BDO Ebrahim & Co., Chartered Accountants, as its external auditors for the period ending CY26, who are also QCR rated and placed in Category ‘A’ of the SBP’s panel of auditors.

The Company has clear reporting lines ensuring the segregation of duties. The head office oversees three principal offices (South, Punjab and North), which are supported by regional offices and specialized divisions. Each HoD reports to the CEO, who then reports to the BoD. However, the Head of Internal Audit and HR administratively report to the CEO, while functionally reporting to the BoD’s respective committees.

Mr. Naved Yunus holds the position of CEO and has been associated with the Company for over four decades. Mr. Pervez Yunus serves as Executive Director – Operations and brings 26 years of insurance experience. Mr. Saad Yunus holds the position of Deputy Managing Director, has been associated with the Company for ten years, and with the insurance industry and an audit firm since 2006. The Company’s management consists of qualified and experienced professionals with a long-standing association with the Company.

The management is assisted by four committees: Underwriting, Claims Settlement, Reinsurance & Co-Insurance, and Risk Management. These committees meet every quarter to discuss all operational issues of the organization and provide strategic and operational guidance to all the departments. Minutes of these meetings are maintained adequately.

The updated version of the MIS system was rolled out at the head office, while the complete rollout across branches is expected to be completed soon. The Motor Third Party Liability (MTPL) functionality has also been successfully integrated into the Underwriting module. Furthermore, CDC API integration has been completed in accordance with the guidelines provided by CDC, enabling the system to successfully transmit the required policy data from the Company’s platform to CDC.

The claim settlement procedure is decentralized at the branch level, with the head office responsible for monitoring. Claim approval authority is retained at the head office level. The head office sets and reviews periodically the limits for settlement by the branches. Claims equal to or higher than that limit are not only circulated to the higher management but are also monitored by the head office.

The Investment Committee is constituted at the BoD level. The Company has an established investment department with a structured Investment Policy Statement (IPS) that provides guidelines, such as stop loss limits, and identifies limits for various investment avenues.

East West follows adequate risk management procedures and guidelines as defined by the BoD. The Company has developed a standard operating procedures manual incorporating detailed guidelines to be followed before the issuance of a policy.

Pakistan's general insurance industry recorded Gross Premium Written (GPW) of PKR 245.2bln in CY25 (CY24: PKR 220.0bln), an uptick of 11%, while net premium written improved by 17.5% to PKR 102.2bln. The momentum continued into 6MCY26, with GPW reaching PKR 133.6bln, of which conventional business contributed PKR 108.8bln and takaful PKR 24.7bln. Underwriting performance softened in CY25: conventional underwriting profit declined to PKR 12.1bln (CY24: PKR 13.9bln) on higher claims and acquisition costs, while the takaful segment posted underwriting losses amid a loss ratio of 99.4%, pushing the overall sector combined ratio above 100%. In 6MCY26, net claims stood at 53.2% of net premium revenue (takaful: 79.7%) and the sector reported underwriting income of PKR 10.2bln. Investment income, the sector's key profit stabilizer, grew by 10% to PKR 43.5bln in CY25 and amounted to PKR 18.6bln in 6MCY26, supporting profit after tax of PKR 16.9bln. The ongoing transition to IFRS 17, risk-based capital and the phased increase in minimum paid-up capital to PKR 2.0bln by CY30 is expected to raise compliance costs, particularly for smaller players. Nonetheless, mandatory motor third-party liability, takaful expansion and low penetration (0.2% of GDP) support structural growth, and the sector outlook remains stable.

East West holds a market share of 5.8% as of CY25 (CY24: 5.5%) and is classified among the six large players in the industry in terms of GPW. The Company’s share in industry net premium stood higher at 9.3% (CY24: 6.2%), reflecting its higher retention relative to peers, with a cession level of 38.0% against 62.1% for the large players.

The Company generates the majority of GPW from conventional business (87%), while the rest (13%) is generated from takaful business (CY25: 91% and 9%, respectively). During 6MCY26, fire & property stood as the top segment, contributing 35.9% to GPW (CY25: 35.3%), followed by motor (17.8%; CY25: 16.8%), engineering (17.6%; CY25: 26.2%), miscellaneous (17.3%; CY25: 10.3%), and marine, aviation & transport (11.5%; CY25: 11.4%). The Company reported GPW of PKR 7.5bln during 6MCY26, which reflects an uptick of 45% over 6MCY25 (PKR 5.2bln). Takaful contribution reached 81% of its CY25 level within six months, led by the miscellaneous segment. The client base is largely corporate, with the top ten customers contributing around 12% of GPW during 6MCY26. Going forward, GPW is expected to maintain its growth trajectory.

During 6MCY26, the Company reported an underwriting profit of PKR 1,008mln (CY25: PKR 1,254mln), already 80% of the CY25 level, with the combined ratio improving to 80.3% (CY25: 84.4%). The improvement was driven by a lower expense ratio of 34.8% (CY25: 38.8%), as management expenses and net commission costs eased to 14.0% and 20.8% of net premium (CY25: 16.5% and 22.4%), while the loss ratio remained stable at 45.5%. Net premium stood at PKR 4,799mln (CY25: PKR 7,649mln), while retention eased to 61.5% (CY25: 69.0%) on higher cessions. The Company reported a net profit of PKR 1,091mln (CY25: PKR 1,471mln), supported by investment income, despite a higher tax charge of 29.1% of profit before tax (CY25: 24.6%). Return on equity (annualized) stood at 31.9% (CY25: 26.6%). Upholding prudent underwriting practices will remain beneficial, going forward.

As of 6MCY26, the investment book of the Company stood at PKR 13.6bln (CY25: PKR 11.9bln), comprising government securities (40.4%; CY25: 38.1%), equity (39.6%; CY25: 40.1%), savings and term deposits (11.2%; CY25: 14.6%), and cash & bank (7.1%; CY25: 5.3%), while the rest is divided among investment properties and debt instruments. During 6MCY26, the Company reported investment income of PKR 647mln (CY25: PKR 1,016mln), already 64% of the CY25 level, driven by gains on disposal of investments of PKR 297mln (CY25: PKR 182mln) and income from debt securities of PKR 172mln, while the revaluation surplus moderated to PKR 61mln (CY25: PKR 350mln). The investment yield improved to 10.2% (CY25: 9.3%). Investment income covered 64.2% of the underwriting result (CY25: 81.0%), indicating that underwriting remains the primary earnings driver. Given the sizeable equity exposure, prudent investment management would remain important to enhance the bottom line.

The Company’s focus on diversification – engineering, health and agriculture, besides the fire segment – bodes well for its growth, as reflected in the increasing share of motor and miscellaneous segments and the expanding takaful business. The vision is to tap into large projects in the engineering segment, while increasing the Company’s footprint in agriculture and microinsurance. Management projects continued growth in GPW and profitability during CY26.

As of 6MCY26, claims outstanding days increased to 183 days (CY25: 153 days), as outstanding claims including IBNR rose to PKR 3,383mln (CY25: PKR 3,041mln) in line with the larger business volume, with net claims of PKR 2,332mln already representing 64% of the CY25 level. Premium collection remained efficient, with days premium outstanding declining to 8 days (CY25: 11 days) and receivable days from other insurers at 33 days (CY25: 36 days).

The Company’s reinsurance program comprises excess of loss treaties across fire, engineering, marine cargo, motor, miscellaneous accident & bond, and crop & livestock, alongside retakaful treaties for WTO. The panel is led by Saudi Reinsurance Company (A- by S&P) and includes PICC Reinsurance Company Limited (A- by S&P), Africa Specialty Risks, Lloyd’s (AA- by S&P), Hannover Re (A+ by AM Best), Africa Re (A by AM Best), Singapore Reinsurance Corp. Ltd (A by AM Best), Antares Global Management Ltd (A by AM Best), Kuwait Re (A- by AM Best) and MGA Speciality (A- by AM Best). A limited share, between 5% and 7.5% per treaty, is placed with reinsurers rated B+ or B by AM Best. During 6MCY26, reinsurance ceded stood at 35.7% of GPW (CY25: 23.6%), while reinsurance recoveries against outstanding claims of PKR 1,265mln (CY25: PKR 1,506mln) covered 37% of outstanding claims (CY25: 50%).

As of 6MCY26, liquid assets (net of borrowings) covered outstanding claims 4.0x (CY25: 3.8x), as liquid assets increased by 14% to PKR 13,407mln (CY25: PKR 11,712mln). Liquid investments stood at 181.6% of equity (CY25: 186.2%), indicating a substantial liquidity cushion.

As of 6MCY26, shareholders’ equity increased by 17% to PKR 7,384mln (CY25: PKR 6,292mln) due to accumulated profits, while paid-up capital rose to PKR 3,096mln (CY25: PKR 2,815mln) through bonus shares. Risky assets declined to 73.2% of equity (CY25: 76.2%), while borrowings remained negligible at PKR 28mln (CY25: PKR 33mln). The paid-up capital is well above SECP’s phased minimum requirement of PKR 1.0bln by end-December 2026, rising to PKR 2.0bln by end-December 2030. The Company meets SECP’s capital adequacy requirement.