Asia Insurance Company Limited (“Asia Insurance” or “the Company”) was incorporated as a public listed company in December 1979 under the Companies Act, 1913 (now Companies Act, 2017). The Company was listed on the Pakistan Stock Exchange in 1982, where its shares trade under the symbol “ASIC”.

Asia Insurance commenced commercial operations in 1980. In 2002, the Company merged with Indus Insurance Company Limited, broadening its operating franchise. In August 2015, the Company was granted a license to operate as a “Window Takaful Operator”, enabling it to offer general insurance solutions compliant with Shariah principles. A notable development in the Company's ownership history was the investment by the InsuResilience Investment Fund (IIF), managed by a Swiss-based investment manager and funded by the German Development Bank, KfW. The investment provided capital support and introduced nominee representation at the Board level. More recently, IIF has decided to exit the Company's sponsor group through the divestment of its shareholding to Private Stock Holding Company, a UK-based private equity firm. While the transaction represents a change in the Company's immediate ownership structure, the underlying sponsorship remains aligned, with the new holding entity backed by the same sponsor interests. Accordingly, the transition is not expected to result in a material change in the Company's strategic direction or sponsor support.

Asia Insurance operates as a non-life insurer offering Conventional and Takaful products across Fire & Property, Marine, Motor, Health & Personal Accident, Agriculture and Miscellaneous lines. The Company is headquartered in Lahore and operates through a network of 30 branches across Pakistan. Dedicated functions for Health, Travel and Agriculture are based in Lahore, while the Auto Insurance division operates from Karachi. The Company's business model remains diversified across multiple lines, with Fire & Property constituting the principal contributor to its premium portfolio.

The Company's ownership has historically been anchored by the sponsoring family, with the Ihtesham-ul-Haq Qureshi family holding a majority interest. IIF held approximately 25.4% of the Company's share capital, while the balance was held by the general public and government-related shareholders. Following IIF's decision to divest its stake to Private Stock Holding Company, the Company's immediate ownership structure is undergoing transition. However, as the incoming holding entity is backed by the same sponsor interests, the transaction is expected to provide continuity in the Company's broader ownership profile and strategic direction.

The ownership structure of the Company seems stable as majority stake is held by the sponsoring family with clear succession plan.

The sponsoring family has an established presence across business segments, with Mr. Ihtesham-ul-Haq Qureshi having entrepreneurial experience in engineering, construction and related businesses. The sponsors' longstanding involvement in the Company provides continuity in its strategic oversight and understanding of the local insurance market.

The sponsoring group has interests across multiple businesses, including Falcon Engineering, which is engaged in electrical and construction-related activities. The Company's own financial resources remain an important consideration in assessing its capacity to support policyholder obligations. The evolving ownership structure, including the entry of the new international sponsor, will remain relevant in assessing the availability and nature of external support, if required.

The Company's Board comprises seven members, including three Independent Directors, two Non-Executive Directors and two Executive Directors. The Board structure incorporates independent representation and a nominee associated with the Company's international investment partner. The composition provides representation across executive, non-executive and independent perspectives in the oversight of the Company's affairs.

The Chairman, Mr. Ihtesham-ul-Haq Qureshi, has longstanding entrepreneurial and managerial experience across construction and technology-related businesses and has been associated with the Company's insurance operations since its establishment through Indus Insurance. The Board also includes directors with experience across business, finance and insurance-related areas, providing a range of expertise relevant to the Company's oversight.

The Board met four times during CY25, with meetings attended by a majority of members. Board oversight is supported by three committees, namely the Board Audit Committee (BAC), Investment Committee (IC), and Ethics, Human Resource & Remuneration Committee (E,HR&R). During CY25, the BAC met six times, while the IC and E,HR&R Committee each met four times.

Ilyas Saeed & Company. is a QCR rated firm and is on the SBP's panel in Category 'A'. It has expressed unqualified opinion on financial statements of CY25.

The Company operates through dedicated functions covering Operations, Underwriting & Reinsurance, Claims, Sales & Marketing, Finance & Accounts, IT, and Human Resources & Administration. Functional heads report to the Chief Executive Officer, while the Heads of Internal Audit and Human Resources maintain reporting lines to the relevant Board committees, supporting functional oversight.

Mr. Zain-ul-Haq Qureshi, the Chief Executive Officer, has been associated with the position since 2020 and brings approximately fourteen years of professional experience. Ms. Rafia Ashraf, Chief Financial Officer, has approximately seventeen years of professional experience. The management structure combines functional specialization with established leadership continuity.

Management oversight is supported through dedicated committees covering Underwriting, Reinsurance & Co-insurance, Claims Settlement, and Risk Management & Compliance. These committees provide structured oversight of key operating and risk areas, including underwriting decisions, claims settlement, reinsurance arrangements and compliance matters.

The Company operates an in-house, centralized, Oracle-based operating system supporting real-time information management. Key management reports include monthly business summaries, segment- and branch-wise premium written and collected reports, comparative premium analysis by segment and agent, and branch-wise monitoring of premium written and outstanding amounts. The system provides management with periodic visibility over business generation and collection trends.

The Company is pursuing further digitization of its claims management process, with the objective of facilitating claims reporting through its branch network. Claims assessment is supported by appointed surveyors licensed by the relevant regulatory authority.

ASIC maintains a formal Investment Policy Statement (IPS) approved by the Board, establishing the framework for investment decisions and portfolio management. The investment function remains relevant to the Company's liquidity management and preservation of resources available against policyholder obligations.

The Company has a formal risk management framework designed to identify, assess and monitor material risks that may affect its operations and financial position. Oversight of risk management is supported through the Risk Management & Compliance Committee, with risk considerations incorporated across key operating functions.

Pakistan's General Insurance Sector continues to exhibit steady premium growth, underpinned by improving economic activity, higher vehicle sales, expanding commercial exposures, and increasing adoption of Shariah compliant insurance solutions. During CY25, the Sector's Gross Premium Written (GPW) grew by ~11.5% YoY to PKR ~245.2bln, while Net Premium Written increased by ~17.5%, reflecting stronger business retention. However, underwriting profitability remained under pressure as elevated claims and higher acquisition and operating expenses pushed the Sector's combined ratio marginally above 100%, increasing reliance on investment income as the primary earnings stabilizer. Regulatory initiatives, including the phased implementation of IFRS 17, the Risk Based Capital (RBC) framework, and mandatory Motor Third-Party Liability insurance, are expected to enhance market depth, transparency, and insurance penetration over the medium term. Meanwhile, continued expansion of digital distribution channels and the growing General Takaful segment are likely to support sustainable premium growth despite a still-low non-life insurance penetration of approximately ~0.2% of GDP.

Asia Insurance continues to operate as a small-sized player within the general insurance industry, holding a market share of under 1%.

Gross Premium Written (consolidated) increased to PKR 1,820mln in CY25 from PKR 1,380mln in CY24, an increase of approximately 32%, driven by growth across both business lines: Conventional GPW increased by approximately 28% to PKR 1,576mln (CY24: PKR 1,234mln), while Takaful Gross Contribution Written grew by approximately 67% to PKR 244mln (CY24: PKR 146mln), reflecting the Takaful window's continued, faster-than-average expansion off a smaller base. This momentum carried into 3MCY26, with consolidated GPW of PKR 440mln compared with PKR 336mln in 3MCY25 (+31.0%), Conventional GPW of PKR 373mln (3MCY25: PKR 287mln, +30.0%), and Takaful Gross Contribution of PKR 67mln (3MCY25: PKR 49mln, +36.7%). At the company level, Net Insurance Premium, per the audited/unaudited financial statements, increased to PKR 1,090.5mln in CY25 from PKR 990.9mln in CY24 (+10.1%), and to PKR 333.2mln in 3MCY26 from PKR 240.9mln in 3MCY25 (+38.3%), indicating retention has strengthened alongside gross volume growth.

Underwriting results improved materially: PKR 36.0mln in CY25 (CY24: PKR 16.0mln, +126%), and PKR 35.1mln in 3MCY26 (3MCY25: PKR 16.9mln, +108%), meaning the Company generated nearly as much underwriting profit in 3MCY26 alone as in the whole of CY25. Investment income diverged sharply across periods: PKR 188.8mln in CY25 (CY24: PKR 151.6mln) supported PAT of PKR 178.3mln (CY24: PKR 168.4mln, +5.9%); but 3MCY26 saw a net investment loss of PKR 37.9mln (3MCY25: +21.3mln), driving PAT down to PKR 6.7mln from PKR 36.2mln (–81%), despite the stronger underwriting result. On a fuller consolidated basis, 3MCY26 underwriting results were ~PKR 51mln and PAT ~PKR 14mln, directionally consistent, with the Takaful window's ~PKR 10mln underwriting contribution partially offsetting the investment-driven dip at company level.

The Company's investment portfolio increased to PKR 842.3mln as at March 31, 2026, from PKR 783.5mln as at December 31, 2025, an increase of approximately 7.5%. The portfolio composition as at March 31, 2026 comprised equity securities of PKR 473.4mln (~56%), term deposits of PKR 287.0mln (~34%), and debt securities of PKR 81.8mln (~10%). The continued tilt toward equities, up from PKR 420.1mln at year-end CY25, is the direct driver of the unrealized investment loss recorded during the quarter, and represents the principal source of earnings volatility going forward. I nvestment yield stood at approximately –17.6% (annualized) for 3MCY26, against 18.7% for full-year CY25, illustrating the scale of the swing.

The Company's underwriting trajectory, combined ratio of 88.0% in 3MCY26 versus 95.3% for full-year CY25, reflects improvement in core operations and reduces reliance on investment income as an earnings stabilizer, which is a positive development. However, the equity-heavy investment allocation introduces meaningful earnings volatility, as evidenced in 3MCY26, and will require continued monitoring. Sustained earnings quality going forward will depend on the Company's ability to consolidate underwriting gains while managing concentration risk within the investment book.

Outstanding claims including IBNR increased to PKR 647.5mln as at March 31, 2026, from PKR 484.7mln as at December 31, 2025, an increase of approximately 33.6%, consistent with the Company's premium growth momentum. Net insurance claims for 3MCY26 stood at PKR 119.7mln, compared with PKR 66.3mln in 3MCY25. The loss ratio stood at 37.9% for 3MCY26 against 39.7% for full-year CY25, indicating claims experience has remained within manageable levels despite the increase in absolute claims.

Reinsurance recoveries against outstanding claims increased to PKR 444.9mln as at March 31, 2026, from PKR 302.2mln as at December 31, 2025, broadly in line with the growth in gross outstanding claims and indicating continued reliance on reinsurance support to moderate the net claims burden. The presence of internationally rated reinsurers continues to support the Company's underwriting capacity and risk mitigation framework.

(Liquid Assets – Borrowings) / Outstanding Claims Including IBNR moderated to 1.3x as at March 31, 2026, from 1.7x as at December 31, 2025, reflecting the higher outstanding claims base following premium growth. While coverage has narrowed, it remains within an adequate range; continued monitoring is warranted given the pace of claims growth relative to the liquid asset base.

Total equity, per the audited/unaudited financial statements, stood at PKR 1,222.3mln as at March 31, 2026, compared with PKR 1,215.5mln as at December 31, 2025, a modest increase. On a full-year basis, total equity had grown to PKR 1,215.5mln at end-CY25 from PKR 1,037.2mln at end-CY24, an increase of approximately 17.2%, supported by retained earnings, with paid-up share capital remaining unchanged at PKR 730.1mln over this period. Liquid Investments / Equity stood at 80.1% as at March 31, 2026, compared with 84.9% at December 31, 2025. The equity base is considered adequate for the Company's current scale of operations; however, the paid-up capital enhancement to PKR 1.0bln, required by the regulator by end-CY26, remains outstanding, leaving a shortfall of approximately PKR 270mln to be met through fresh injection or further capitalization of reserves. Given this pending requirement and the growing exposure to market-sensitive assets within the investment book, continued internal capital generation and timely compliance with the regulatory capital benchmark remain important to preserve capital adequacy headroom as the business scales.