Askari Life Assurance Company ("Askari Life" or "the Company") was incorporated in 1992 as a public listed company under the repealed Companies Ordinance 1984 (now called Companies Act 2017). The Company is listed on PSX.

The Company, formerly known as East West Life Assurance Company Limited, commenced its operations in Feb-93. The parent group, Army Welfare Trust (the Trust), was formed in 1971 and comprises a diversified business portfolio renowned in all major sectors of Pakistan, including Insurance, Aviation, CNG, Agriculture, Manufacturing, Sugar, Lubricants, Real Estate, Security Solutions, and Information Technology.

The Company is engaged in life insurance and window takaful business including savings and family protection plans to unit-linked plans, tailored health and life insurance coverage. The head office is located in Karachi, while the Company operates through branches in Lahore and Islamabad.

The shareholding structure remains highly concentrated, with the majority stake held by Army Welfare Trust at ~66.65% as at Mar’26 (Dec’25: 66.65%). The remaining shareholding is distributed among institutions at ~8.5% (Dec’25: ~9.3%) and individuals/local and foreign shareholders at ~24.5% (Dec’25: ~24.1%), which includes minor holdings by sponsors/directors (~0.01%–0.02% each). Overall, sponsor/director-led ownership remains dominant at ~67%, indicating continued strategic control with limited dispersion in the free float.

Ownership seems to remain stable, going forward, as the majority of the shareholding lies in associates (the Trust).

The Trust is committed to improve the welfare of retired personnel and martyrs by developing income-generating activities and promoting employment opportunities showcasing strong business acumen.

Financial strength of the Trust is deemed stable where support is being derived from successful business ventures in multiple sectors.

The Board comprises eight members, including the CEO/Executive Director. The Board includes five Non-Executive Directors, two Independent Directors (one of whom is a female director), and one Executive Director.

The previous Chairman, Lt. Gen. Nauman Mehmood (Retd), resigned after the balance sheet date and was replaced by Maj. Gen. Syed Anis Akbar (Retd), HI(M), who is a seasoned military veteran with extensive experience in logistics, procurement, and strategic operations, and currently provides corporate leadership within the Army Welfare Trust. Maj. Gen. Muhammad Ahmed Malik (Retd), HI(M), is a decorated military officer with vast command and international experience, now serving in a senior executive role within the Army Welfare Trust’s aviation and financial services functions. Mr. Malik Riffat Mehmood, FCA, is a finance professional with diversified sector experience, currently Group CFO of Askari Group of Companies, with strong expertise in financial planning and strategy. Ms. Ayesha Rafique is a senior legal professional with over two decades of experience in corporate and regulatory affairs, currently Head of Legal and Regulatory Affairs at edotco Pakistan. Mr. Tariq Hameed is an experienced actuary with over 40 years of international exposure across pensions and insurance sectors, holding fellow actuarial qualifications from the UK and the USA. Mr. Muhammad Noman Akhter, FCA, is a governance and finance expert with extensive experience at SECP, PwC, and KPMG, and currently serves as director and corporate advisor across multiple organizations. Maj. Gen. Abid Latif Khan (Retd) has been appointed as Director on the Board of Askari Life Assurance Company Limited, subject to SECP approval, replacing Mr. Rizwan Ullah Khan.

Three committees assist the Board in overseeing operations: (i) the Audit (ii) Investment (iii) Ethics, HR Remuneration & Nomination Committee. 5 Board meetings were held, with the minutes of the meeting documented. These Committees meet at regular interval of time and whenever the need arises.

The external audit for CY25 was conducted by BDO Ebrahim & Co., Chartered Accountants, who issued an unqualified opinion on the financial statements for the year ended December 31, 2025. The change of auditor from RSM Avais Hyder Liaquat Nauman (CY24) to BDO Ebrahim & Co. represents a change in audit firm. BDO Ebrahim is a QCR-rated firm, maintaining the standard of external audit engagement.

Askari Life operates with a horizontal organizational structure where reporting lines extend to the Executive Committee, working closely with the CEO. The Company's operations are segmented into six primary areas: Administration, Human Resources, Accounts & Finance, Operations, Information Technology, and Distribution Services. Each department head reports to the Executive Committee, which in turn reports to the Board.

Mr. Jehanzeb Zafar, the Chief Executive Officer, brings nearly a decade of experience and has been associated with the Company since 2018. He has also served as Chief Strategy Officer (CSO) at Adamjee Life Assurance Co. Ltd. He is a dynamic and visionary leader in the insurance and financial services sector and is supported by a qualified and experienced management team. Mr. Rehan Mobin is a seasoned finance and compliance professional with around 18 years of experience in the insurance sector, having held senior roles at AsiaCare, PICIC Insurance, IGI Insurance and Deloitte Bermuda, and is a qualified CPA (USA) and FCA (ICAP). Mr. Azmatullah Sharif is the Chief Operating Officer with extensive international experience in actuarial, operations and people management across Middle East and Pakistan, and is a Fellow of the Society of Actuaries with prior senior roles at Munich Re, Hannover Re and Salama Dubai. Mr. Syed Ali Imran is Head of Distribution with 30 years of financial sector experience, having worked with leading institutions including Jubilee Life, MCB Bank, SilkBank and ALICO in senior sales and business development roles. Mr. Waqas Waseem is Head of HR and Administration with over 15 years of experience in HR, industrial relations and organizational development across manufacturing and financial sectors, and holds an MBA, LL.B and multiple international HR certifications. Mr. Khurram Shahzad Awan is National Sales Head with nearly 30 years of experience in life insurance and takaful industry, having held senior leadership roles at Jubilee Family Takaful, IGI Life, Alico AIG and EFU Life, with strong expertise in sales and business development.

The Board has established three management committees to ensure the effectiveness of its processes: (i) Underwriting and Reinsurance (ii) Claim Settlement (iii) Risk Management & Compliance Committee. Meetings are conducted on a regular basis to counter operational challenges and to run business smoothly.

A detailed claim settlement guide is developed by Askari Life with a core objective of a smooth transition between different stages of the process. With the initiation of the claim through the policyholder’s request, a policy review is undertaken. Once the legitimacy of the claim is verified, a case is prepared and forwarded to the Head of Claims for approval.

A comprehensive IPS has been drafted, which provides guidance in terms of investment decision-making. The meeting is held on a quarterly basis, in which the investment framework is discussed and investment decisions are made, in accordance with the IPS.

The Company has developed risk management framework that establishes principles and standards for the management and control of all risks. The risk register captures all the risks that are currently impacting the Company or may have an impact in the future. It highlights the severity of the risk and controls in place for prevention. The risk register is updated regularly.

The life insurance sector in Pakistan recorded Gross Premium Written (GPW) of PKR ~496.9bn in CY25, up ~13.8% YoY, driven by strong growth across both public and private segments. The public segment remained dominant with a ~58.6% share (PKR ~291.2bn, +8.8% YoY), while the private segment outpaced growth at ~21.7% YoY to PKR ~205.7bn, increasing its share to ~41.4%. Despite sustained expansion, the sector remains underpenetrated versus regional peers, though growth is supported by improving macroeconomic conditions, rising bancassurance penetration, and regulatory reforms including IFRS 17 and risk-based capital framework enhancements. The premium mix continued to shift toward quality, with individual regular premiums rising to ~52.8% (CY24: ~47.7%) amid lower inflation and improved purchasing power, while group business moderated to ~38.1% and single premiums declined to ~9.1%. On the claims side, gross claims increased ~7.3% to PKR ~412.7bn, with a decline in surrender claims to ~40.5% reflecting improved retention, while maturity and death claims increased with a growing in-force portfolio. The sector’s investment portfolio remains predominantly concentrated in government securities, mainly Treasury Bills, Pakistan Investment Bonds (PIBs), and Sukuks. This allocation reflects a regulatory-driven and risk-averse investment strategy focused on capital preservation, liquidity management, and stable long-term returns. Sector profitability remained broadly stable at PKR ~23.7bn (-0.8% YoY), as strong premium growth was offset by a ~13.5% decline in investment income due to monetary easing and a sharp reduction in policy rates.  (Source: PACRA Sector Study)

Despite maintaining a market share of less than 1% in the private life insurance sector as of CY25, Askari Life posted a strong ~62% growth in Gross Premium Written (GPW), driven primarily by support from the Askari Group ecosystem and the Trust. Going forward, sustaining this growth momentum alongside gradual market penetration, while maintaining underwriting discipline, will be key to strengthening its competitive positioning.

During CY25, the Company’s persistency profile strengthened, reflecting improved policyholder retention and enhanced stability of the in-force portfolio. The first-year persistency ratio increased to ~70% (CY24: ~66%), while renewal persistency improved to ~76% (CY24: ~68%), indicating better customer retention and sustained premium renewal behavior. Overall, the improvement reflects the impact of effective customer servicing, retention initiatives, and continued support from the sponsoring group, reinforcing the stability and sustainability of the insurance portfolio.

During CY25, the Company’s gross premium written (GPW) surged by ~62% to PKR 3,277mln (CY24: PKR 2,018mln), reflecting a significant acceleration in business growth compared to the previous year. The growth was primarily driven by the individual segment, which constituted 83% of total GPW (CY24: 74%), supported by an expanded product and distribution focus. Within the mix, the single premium business recorded exceptional growth, while the group business also posted steady expansion. Net premium revenue increased to PKR 2,888mln (CY24: PKR 1,693mln), with reinsurance cessions of PKR 388mln (CY24: PKR 324mln), translating into a healthy retention ratio of ~88%. Overall, the Company demonstrated strong top-line momentum supported by diversified business growth and improved distribution reach.

CY25 marked a material step-change in profitability. PBT of PKR 123.9mln in CY25 far exceeded CY24's PKR 18.3mln, and PAT of PKR 126.0mln (CY24: PKR 15.1mln) was achieved on the back of premium volume expansion, improved underwriting leverage, and controlled acquisition costs relative to premium scale. The combined ratio normalized significantly from CY24 levels, reflecting better absorption of fixed expenses. Acquisition expenses of PKR 1,165mln (CY24: PKR 838mln) rose in absolute terms but declined as a proportion of net premium, reflecting scale benefits. Marketing and administration expenses of PKR 456mln (CY24: PKR 392mln) remained elevated but broadly in line with business growth. Net change in insurance liabilities of PKR 1,019mln reflects strong reserve build commensurate with premium growth.

The investment portfolio expanded significantly to PKR 3,915mln as at December 31, 2025 (CY24: PKR 2,704mln), driven by growth in policyholder fund liabilities. Government securities constituted approximately 62% of the portfolio (PKR 2,427mln), followed by mutual funds at approximately 22% (PKR 842mln) and equity securities at approximately 8% (PKR 311mln). Investment income of PKR 232mln in CY25 moderated from CY24's PKR 273mln, reflecting the impact of declining benchmark rates on fixed-income yields despite portfolio growth. Net realised gains on financial assets contributed PKR 69mln, and net unrealised gains PKR 32mln. Total investment and other income stood at PKR 347mln (CY24: PKR 389mln). The low-risk investment profile insulated the fund from the post-December 2025 equity market correction.

The Company's sustained revenue momentum across CY25 reflects deepening distribution capabilities, strengthened bancassurance relationships, and growing brand equity within the AWT ecosystem. Management's focus on expanding the bancassurance segment and broadening the agent network provides credible levers for continued growth. The ongoing investment in digitisation and customer engagement is expected to enhance persistence and operational efficiency. Maintaining the improved profitability trajectory alongside regulatory capital compliance and progressive equity repair will be critical for long-term rating sustainability.

During CY25, net insurance benefits expense expanded to PKR 436.2mln (CY24: PKR 345.7mln), consistent with increased premium volume. The gross claims-to-net-premium ratio remained controlled. Reinsurance recoveries of PKR 482.0mln (CY24: PKR 205.5mln) provided meaningful risk mitigation and reflect disciplined reinsurance programme management. The claims coverage ratio, measured as liquid investments to net outstanding claims, remains robust, supporting the Company's ability to meet policyholder obligations in a timely manner.

Askari Life maintains reinsurance arrangements with Hannover Re (AA- by S&P) and Munich Re (AA- by S&P). The quality of the reinsurance panel is strong, and the counterparty credit risk profile is considered sound.

For CY25, operating cash flows from underwriting activities remained positive, supporting operational liquidity. As at CY25, cash and bank balances stood at PKR 330.7mln (CY24 PKR 244.9mln), with total investments of PKR 3,584mln. Liquid investments to net claims coverage remains strong at above 8.9x (CY24 7.8x), and liquid assets to net premium revenue continue to reflect a healthy coverage position. The overall liquidity profile is adequate to meet current policyholder liabilities.

The equity base strengthened to PKR 623.5mln as at CY25 (CY24: PKR 509.4mln), driven by profitability during the year. As at December 31, 2025, equity further improved to PKR 637.5mln. The accumulated equity deficit (Ledger Account D) narrowed to PKR 1,565.8mln at December 2025, compared to PKR 1,683.8mln at December 2024, reflecting improvement in statutory fund performance. The capital adequacy ratio, measured as liquid investments to equity, improved materially in CY25 on the back of investment portfolio expansion. Paid-up share capital of PKR 1,501.7mln remains comfortably above the regulatory minimum capital requirement of PKR 700mln prescribed under the Insurance Rules 2017. An advance against equity of PKR 730mln remains on the balance sheet and awaits conversion. Full regulatory capital compliance and progressive reduction in the accumulated deficit remain key monitoring parameters.