IGI
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By Sandeep Chaudhary

IGI Prudential Insurance Limited Posts Moderate Profit Amid Revenue Decline

IGI Prudential Insurance Limited Posts Moderate Profit Amid Revenue Decline

IGI Prudential Insurance Limited (IGI) has published its audited Q4 results for FY 2024/25, showing declining revenues and profits compared to last year but maintaining resilience in margins, policy renewals, and investment strength.

The company reported total revenue of Rs. 2.10 billion, down 9.57% year-over-year from Rs. 2.36 billion in Q4 2023/24. Sequentially, revenue showed weakness across quarters, with the highest drop of 21.80% in Q3, signaling pressure on underwriting and premium collections.

Gross profit stood at Rs. 1.15 billion, with a margin of 54.54%, down from 65.64% last year but still reflecting solid operational efficiency in underwriting and investment income. Net income declined to Rs. 364.97 million, a significant fall from Rs. 612.13 million last year, bringing the net margin down to 17.35% from 25.88%.

For shareholders, EPS (annualized) was Rs. 12.05, almost halved compared to Rs. 20.21 last year. The PE ratio stood at 46.23, indicating higher market valuation relative to earnings. Book Value per Share declined to Rs. 249.16 from Rs. 262.44 last year, while the Market Value per Share remained steady at Rs. 556.99, nearly unchanged year-over-year. Dividend distribution has not been announced this year, whereas IGI provided Rs. 9.74 per share last year.

Insurance Operations

  • Policy Issuance: The total issued policies stood at 222,162, slightly down by 4.46% YoY, suggesting slower growth in new business.

  • Policy Renewals: Renewed policies rose strongly to 62,820, marking a 21.43% YoY increase, reflecting customer retention strength.

  • Claims Paid: IGI settled 18,498 claims, slightly down from 19,468 last year (-4.98% YoY). This reduction points to effective claims management despite higher counts in previous quarters.

  • Outstanding Claims: Outstanding claims dropped significantly to 7,661, a 27.65% decline YoY, easing claim liabilities.

Investments

IGI’s financial stability is reinforced by its investments:

  • Long-term investments stood at Rs. 1.50 billion, slightly above last year’s Rs. 1.26 billion.

  • Short-term investments remained massive, exceeding Rs. 353 billion, ensuring high liquidity and operational flexibility.

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