State Life Insurance Corporation of Pakistan (“State Life” or the "Corporation”) was established in 1972 as a public limited company under the Life Insurance Nationalization Ordinance (LINO).

The Corporation was established in 1972 under the LINO. Before nationalization, 32 life insurance companies were consolidated, which later merged to form the Corporation. Its primary function is to conduct life insurance business, and it also invests policyholders' funds in various avenues.

The Corporation operates both conventional and takaful life businesses, offering non-unit-linked products that are distinct from those of the private sector. State Life manages five statutory funds: (i) Pakistan Life, (ii) Overseas Life, (iii) Pension, (iv) Accident and Health, and (v) Takaful Fund. In addition to these offerings, the Corporation will now also provide Voluntary Pension Scheme (VPS) products in both Conventional and Shariah-compliant categories, further expanding its pension and retirement solutions for policyholders. The head office of the Corporation is located in Karachi.

State Life is wholly owned by the Government of Pakistan (GoP) through the Federal Ministry of Commerce.

The Corporation is a public sector concern, thus providing stability to the ownership structure

The Federal Ministry appoints experienced individuals to manage the Corporation, ensuring strong business acumen.

The Corporation gathers support from sovereign backing, which ensures strong financial stability.

The previous Board of State Life was retired in Mar'25. Subsequently, in Jan'26, the Federal Government appointed the Board through the appointment of a new set of directors. The reconstituted Board comprises five Independent Directors, including the Chairperson, three Non-Executive Directors representing various government ministries, and one Executive Director serving as the Chief Executive Officer (CEO).

The Board of State Life Insurance Corporation of Pakistan is led by its newly appointed Chairperson, Mr. Saleem Zia, a former Senator from Punjab (2015–2021) with extensive experience in governance, public administration, and policy oversight. He provides strategic leadership and strong governance oversight to the Board. Mr. Zia holds an LLB degree and brings over 20 years of professional experience, contributing valuable expertise in institutional stewardship and decision-making. The remaining Board consists of a diverse group of independent and non-executive directors. Among the independent directors, Mr. Shoaib Mir holds an MBBS & Diploma with 25 years of experience; Mr. Sheharyar Iftikhar Khan holds an MBA with 25 years of experience; Mr. Khaqan Murtaza holds an MBA/BSc/BA with 30 years of experience and Ms. Tushnamaity Patel is a seasoned entrepreneur with over 25 years of experience in business management, logistics, and supply chain operations. Representing the non-executive cadre as nominees from various ministries are Mr. S. Hamid Ali, who holds an MSc & MBA and possesses 31 years of experience; Mr. Muhammad Asif, who holds a Master's in Public Management with 25 years of experience; and Mr. Muhammad Aslam Ghauri, who holds an MSc & MBA and brings 20 years of experience.

The Board operates through eight committees: (1) Ethics, Human Resource, Remuneration & Nomination Committee, (2) Investment Committee, (3) Audit Committee, (4) Underwriting/Reinsurance & Co-Insurance Committee, (5) Claim Settlement Committee, (6) Risk Management Compliance & Litigation Committee, (7) IT Committee and (8) Board Standing Committee. The Board Committees meets on a need basis.

The Company's external auditors for CY25 were M/s Hussain Chaudhury & Co., Chartered Accountants, who were appointed during the year in place of M/s Riaz Ahmad & Co., Chartered Accountants. The auditors issued an unqualified opinion on the Company's financial statements for the year ended CY25. The audit firm is QCR-rated and is included in the State Bank of Pakistan's panel of auditors under Category 'A'.

The Corporation holds a horizontal organizational structure with clear reporting lines. The operations include 1) General procurement, 2) HR & Administration, 3) Policy Holders Services (PHS), 4) Real Estate, 5) Finance and Accounts, 6) Investments, 7) Legal Affairs, 8) Group and Pension, 9) Bancassurance, 10) Takaful, 11) Human Resource Development (HRD), which are headed by three Executive Directors (ED) collectively who directly report to the CEO.

Mr. Shoaib Javed Hussain - CEO, holds experience of more than two decades, in finance, audit, risk, and strategy across leading global insurance groups. He is a Fellow of the Institute of Actuaries (UK) and holds an MSc in Actuarial Management from Cass Business School, London. Mr. Syed Shahnawaz Nadir Shah - Chief Investment Officer (CIO), brings extensive experience in pension fund and government investment management. He holds an MBA, M.A. in Economics, and a B.Com, combining strong academic and practical expertise to guide the Corporation’s investments. Mr. Muhammad Amjad - Chief Financial Officer (CFO), brings over three decades of experience in finance, accounting, and financial management. He is a Fellow Cost and Management Accountant (FCMA) from the Institute of Cost and Management Accountants of Pakistan (ICMA Pakistan), combining strong professional credentials and extensive practical expertise to oversee the Corporation’s financial management, budgeting, accounting, and financial planning functions.

The Board is essentially concerned with policy matters only. Therefore, the responsibility of operations and internal controls rests with the Executive/Operational management and departmental heads.

Claims are settled at three levels in designated committees: 1) Zonal Claims Committee, 2) Regional Claims Committee, and 3) Central Claims Committee. Each Zonal and Regional Claims committee has its authorized limits on the basis of the skills, qualifications, and experience of the respective team. For early death claims (claims during the two years of policy issuance), claims investigators are appointed, and reports are presented to the claims committee.

State Life's investment strategy continued to remain conservative, with maximum asset allocation (dynamic) risk-free securities.

Risk Management efforts of the Corporation have been formalized through the constitution of the Board's Risk Management Committee and the creation of the Risk Management Division. Ongoing efforts are being made to strengthen the implementation of the Risk Management Framework.

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)

As of CY25, State Life holds the highest market share (~58.2%) in terms of GPW in the industry. As Pakistan's largest life insurer, it operates through 33 zones for individual life business, along with 7 regions and 4 zones for group life business, in addition to Gulf operations through a zonal office in Dubai.

During CY25, State Life maintained a strong persistency ratio of approximately 84%, consistent with the previous year. Renewal persistency improved to approximately 92% (CY24: ~90%), reflecting the Corporation’s customer-centric and flexible product offerings, along with its ability to foster long-term relationships with policyholders.

During CY25, the Gross Premium Written (GPW) of State Life grew by ~9.1%, reported at ~PKR 289.3bln (CY24: ~PKR 265.3bln). This growth was broad-based, with first-year premium rising sharply to ~PKR 37.9bln (CY24: ~PKR 29.4bln), reflecting ~29% growth, while second-year premiums grew by ~19% to ~PKR 24.8bln (CY24: ~PKR 20.8bln). Subsequent year renewal premiums also expanded by ~9.5% to ~PKR 116.7bln. However, group premiums without cash values declined to ~PKR 136.8bln (CY24: ~PKR 169.2bln), partially offsetting gains from individual life segments. Net premium revenue after reinsurance ceded stood at ~PKR 288.4bln (CY24: ~PKR 264.4bln), reflecting an increase of ~9%.

During CY25, State Life's profitability remained strong, underpinned by improved underwriting performance and healthy investment income. The Corporation reported an underwriting profit of approximately PKR 27.7bln (CY24: PKR 3.6bln), primarily attributable to lower net insurance benefits during the year. Investment income increased to approximately PKR 305.4bln (CY24: PKR 308bln), supported by the growth in the investment portfolio. Consequently, profit before tax improved to approximately PKR 26.3bln (CY24: PKR 25.8bln), while profit after tax increased to PKR 16.1bln (CY24: PKR 15.8bln), translating into earnings per share of PKR 201.4 (CY24: PKR 196.9). During the year, the Corporation's expense base expanded, with acquisition expenses rising to approximately PKR 36.8bln (CY24: PKR 32.4bln) and marketing and administrative expenses increasing to approximately PKR 21.9bln (CY24: PKR 19.8bln). Nevertheless, the impact of higher operating expenses was offset by stronger underwriting and investment performance.

During CY25, State Life maintained a diverse and healthy investment book reported at ~PKR 2,114.4bln (CY24: ~PKR 1,829bln), reflecting robust growth of ~15.6% year-on-year. The portfolio is heavily weighted toward government securities at ~PKR 1,549.3bln (CY24: ~PKR 1,334.3bln), with equity instruments at ~PKR 347.6bln (CY24: ~PKR 294.9bln), cash and bank balances at ~PKR 149.5bln (CY24: ~PKR 76.4bln), debt securities at ~PKR 43.2bln (CY24: ~PKR 30.1bln), mutual funds at ~PKR 20.6bln (CY24: ~PKR 81.8bln) and fixed deposists at ~PKR 779.5mln (CY24: ~PKR 7.6bln). Investment income for CY25 reached ~PKR 189.3bln (CY24: ~PKR 169.5bln), supplemented by net realized fair value gains of ~PKR 60.1bln (CY24: ~PKR 17.9bln) and net unrealized fair value gains of ~PKR 54.9bln (CY24: ~PKR 119.7bln), bringing total investment-related income to ~PKR 305.4bln (CY24: ~PKR 308bln). The strong and diversified investment base continues to be the primary driver of State Life's profitability.

State Life aims to maintain sustained growth with a focus on new avenues of business expansion. In response to rising competition from private sector players, the Corporation continues to expand its product range across health insurance, bancassurance, and Window Takaful. Enhancing digital capabilities to stay competitive and meet evolving customer demands remains a strategic priority. The Corporation benefits from a robust nationwide distribution infrastructure, supported by approximately 1,357 area offices, 302 sector offices, and over 11,000 agency offices operating across 50+ zones and 14 regions, which strengthens its market penetration and supports its long-term growth prospects.

During CY25, State Life's net insurance benefit expense declined to approximately PKR 223.9bln (CY24: PKR 228.3bln), reflecting a reduction of around 2%, primarily driven by a significant decrease in surrender-related claims under individual policies to approximately PKR 54.8bln (CY24: PKR 78.1bln). Meanwhile, maturity claims under individual policies increased to approximately PKR 58.3bln (CY24: PKR 50.3bln), reflecting the maturing policy portfolio, while gross claims under group policies rose to approximately PKR 98.3bln (CY24: PKR 89.1bln). Owing to the lower claims burden, the Corporation's claims outstanding days improved to 266 days (CY24: 271 days).

State Life maintains reinsurance arrangements with Swiss Re (rated 'AA-' by S&P) for both its Pakistan and overseas business, with a net retention limit of PKR 5mln per policy for individual life and PKR 5mln per person for group life. Takaful business is reinsured with Hannover Re Takaful (rated 'AA-' by S&P). All reinsurance assets of the Corporation are held with counterparties rated 'A or above', ensuring negligible credit risk exposure on the reinsurance book. The Corporation's reinsurance program effectively caps large individual exposures while maintaining a disciplined ceding structure, as evidenced by net reinsurance premiums ceded of ~PKR 967mln in CY25 (CY24: ~PKR 894mln).

During CY25, the investment portfolio is primarily composed of liquid assets including government securities. Liquid investments to net claims coverage remains strong at approximately 8.4x (CY24: 7.0x), based on net insurance benefit expense of ~PKR 223.9bln (CY24: ~PKR 228.3bln), while liquid assets to net premium revenue stands at approximately 6.5x (CY24: 6.1x), against net premium revenue of ~PKR 288.4bln (CY24: ~PKR 264.4bln), reflecting a strong liquidity position. Moreover, the net cash generated from all activities amounted to ~PKR 73.1bln in CY25 (CY24: ~PKR 4.0bln), underpinned by a strong uptick in underwriting cash flows of ~PKR 233.3bln (CY24: negative ~PKR 196bln).

As of CY25, State Life maintains a strong equity base, reported at ~PKR 66.5bln (CY24: ~PKR 53.4bln), reflecting a year-on-year increase of ~25%, driven by profit retention and growth in Ledger Account C&D to ~PKR 54.1bln (CY24: ~PKR 42.1bln). Paid-up share capital remained unchanged at PKR 8bln, while unappropriated profit increased to ~PKR 4.1bln (CY24: ~PKR 2.2bln). The capital structure is fully backed by the Government of Pakistan as the sole shareholder, providing implicit sovereign support. Total insurance liabilities stood at ~PKR 2,329.1bln against equity of ~PKR 66.5bln, translating into a capital-to-liabilities ratio of approximately 2.9%. The Board of Directors declared a dividend of PKR 3,200mln in Apr'26 (CY24: PKR 3,000mln), reflecting confidence in the Corporation's earnings generation capacity. Furthermore, aggregate retained earnings across the Corporation's statutory funds stood at ~PKR 192.4bln against the aggregate minimum solvency requirement of ~PKR 96.6bln under the SECP Insurance Rules, 2017, providing solvency coverage of approximately 199%. The strong solvency position reflects State Life's ability to meet policyholder obligations, withstand financial stress, and maintain operational stability, supporting its strong financial profile.