Non-life insurance profit up by 60pc

Lahore: All listed non-life insurance companies of Pakistan have announced their first quarter results, citing impressive 60 percent growth in the bottom-line, a statement said on Monday.

With a large jump of Rs255 million in earnings of the Central Insurance, the sector profit growth comes to 32 percent. Thanks to some stability in the macroeconomic indicators, better equity values and higher interest rates, the growth in earnings stems from core underwriting business and higher investment income, it said.

With better outlook of capital markets, gradual economic recovery and availability of ample avenues for business penetration, the overall scenario looks better for the insurance business.

Thanks to nine percent growth in net premiums of the sector with net claims ratio remaining unchanged at 59 percent, it said, adding that the underwriting business of the companies grew by an impressive 32 percent.

This 59 percent claim ratio is still considerably lower than highest 64 percent (in 2007) claim ratio during the last five years.

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