United Ajod Insurance Q4 Results: Revenue Stable but Profit Declines, Policy Growth Strong

United Ajod Insurance Limited (UAIL) has published its audited Q4 financial results for FY 2024/25, highlighting stable revenue performance but declining profitability compared to last year. While underwriting margins remain solid, policy growth has been strong, though claims and declining earnings continue to weigh on results.

The company reported a total revenue of Rs. 1.74 billion in Q4, almost flat with a slight 0.07% year-on-year growthcompared to Rs. 1.91 billion in Q4 of FY 2023/24. Sequentially, revenue improved from Rs. 1.10 billion in Q3, showing recovery after earlier quarters of contraction.

The gross profit stood at Rs. 1.00 billion, yielding a gross margin of 57.54%, which was lower than last year’s 67.04% but an improvement from Q3’s 51.84%. This indicates controlled costs despite lower revenue.

However, net income dropped significantly. The company earned Rs. 216.43 million in Q4, compared to Rs. 385.29 million in Q4 of last year. Profitability was also affected earlier in FY 2024/25, with Q1 posting a net loss of Rs. 18.15 million. The net margin stood at 12.40%, down from 20.12% last year.

Return indicators softened. Return on Assets (ROA) came in at 2.76%, compared to 4.89% last year, while Return on Equity (ROE) declined to 5.60%, from 10.61% a year ago.

On a per-share basis, EPS (annualized) was Rs. 9.37, about half of last year’s Rs. 18.35. The reported PE ratio stood at 61.00, showing relatively high valuations despite weaker earnings.

The book value per share dropped to Rs. 193.77 from Rs. 252.81 last year, reflecting retained earnings pressure. Meanwhile, the market value per share stood at Rs. 571.56, maintaining about 3x its book value.

Insurance Business Indicators

• Total issued policies rose sharply to 299,289 (+49.55% YoY), signaling robust business expansion.

• Renewed policies increased to 51,537 (+35.50% YoY), improving client retention.

• Total claims paid declined to 8,125 (-11.39% YoY), suggesting better underwriting risk or delayed payouts.

• Outstanding claims fell slightly to 9,615 (-4.77% YoY), showing gradual settlement efficiency.

• Long-term investments grew to Rs. 1.22 billion, compared to Rs. 586.20 million last year, strengthening the balance sheet.

• Short-term investments, however, appear abnormally high (reported in hundreds of billions % format), indicating a likely reporting or formatting issue.

Dividend for FY 2024/25 has not been declared. Last year, the company distributed Rs. 10.53 per share.