East West Insurance Company Limited (EWIC) has announced exceptionally strong financial results for the year ended December 31, 2025, as approved by its Board of Directors on April 3, 2026. The company showcased significant growth across key metrics, driven by robust underwriting performance and impressive investment income. This culminated in a recommended 10% interim bonus share issue for its shareholders, signaling confidence in future growth.
Financial Performance Highlights
EWIC delivered a remarkable performance in 2025, with Net Insurance Premiums surging by 69.29% to PKR 7.29 billion, up from PKR 4.30 billion in the previous year. This strong top-line growth translated directly into a significant boost in underwriting results, which nearly doubled, growing by 88.82% to PKR 1.10 billion from PKR 0.58 billion in 2024.
The company's investment income also played a crucial role, increasing by 34.95% to PKR 1.02 billion. This combined strength led to a 61.11% jump in Profit Before Tax, reaching PKR 1.93 billion compared to PKR 1.20 billion in 2024. Ultimately, Profit After Tax climbed by a solid 48.99% to PKR 1.45 billion, resulting in Earnings Per Share (EPS) of PKR 5.15, a substantial improvement from PKR 3.46 in the prior year.
{
"rows": [
[
"Net Insurance Premiums",
"7.29",
"4.30",
"69.29%"
],
[
"Underwriting Results",
"1.10",
"0.58",
"88.82%"
],
[
"Investment Income",
"1.02",
"0.75",
"34.95%"
],
[
"Profit Before Tax",
"1.93",
"1.20",
"61.11%"
],
[
"Profit After Tax",
"1.45",
"0.97",
"48.99%"
],
[
"EPS (PKR)",
"5.15",
"3.46",
"48.84%"
],
[
"Total Assets",
"17.92",
"10.56",
"69.67%"
],
[
"Shareholder Equity",
"6.16",
"4.67",
"31.82%"
],
[
"Cash & Bank Balances",
"1.34",
"0.10",
"1208.20%"
],
[
"Operating Cash Flows",
"5.31",
"1.03",
"416.40%"
],
[
"Total Liabilities",
"10.38",
"5.01",
"107.40%"
]
],
"type": "table",
"headers": [
"Metric",
"2025 (PKR Billion)",
"2024 (PKR Billion)",
"Growth (%)"
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}The balance sheet reflects this robust growth, with total assets expanding significantly by 69.67% to PKR 17.92 billion from PKR 10.56 billion. Shareholder equity also strengthened considerably, rising by 31.82% to PKR 6.16 billion from PKR 4.67 billion. Notably, the company’s cash and bank balances saw an extraordinary increase of over 1200%, jumping from PKR 0.10 billion to PKR 1.34 billion, indicating strong liquidity. Operating cash flows also mirrored this strength, soaring by 416.40% to PKR 5.31 billion from PKR 1.03 billion.
Key Drivers & Segments
The primary driver of EWIC's impressive results is the sustained growth in its core insurance premium business, indicating effective market penetration and client retention. This top-line expansion, coupled with efficient underwriting, has allowed the company to significantly improve its underwriting profitability. Furthermore, the substantial contribution from investment income highlights successful asset management strategies, diversifying revenue streams beyond traditional insurance operations.
Management Actions & Strategic Signals
In a move that signals confidence in future growth and aims to reward shareholders, the Board of Directors has recommended a 10% interim bonus share issue (1 share for every 10 shares held). While no cash dividend was declared, the bonus shares effectively increase shareholders' equity in the company, allowing capital to be retained for further business expansion and investment. This strategy is often favored by growth-oriented companies looking to strengthen their capital base.
The significant increase in total liabilities by 107.40%, particularly in unearned premium reserves and outstanding claims, is a direct reflection of the expanding business volume. This growth in liabilities is a natural consequence of increased premium generation and the associated future claim obligations, which the company appears well-positioned to manage given its strong cash flows and asset base.
Investor Takeaway
For investors, EWIC's 2025 results present a compelling picture of a company in a strong growth phase. The substantial increase in premiums, underwriting profits, and investment income suggests robust operational health and effective strategic execution. The 10% interim bonus share issue, while not a cash payout, is a positive signal of management's belief in the company's intrinsic value and future earnings potential, effectively reinvesting profits back into the business for long-term shareholder benefit.
Going forward, investors should monitor the company's continued ability to grow its premium base, manage claims effectively, and sustain its strong investment income. The significant increase in cash and investments provides a solid foundation for future expansion or potential capital deployment. EWIC appears to be building strong momentum, making it a stock to watch in the PSX insurance sector.