Softlogic Life Insurance PLC reported group net profit of Rs 76.5 million for the quarter ended 30 September 2026, down 92.9 percent from Rs 1.07 billion a year earlier, even as premium income grew strongly.

Basic earnings per share fell to Rs 0.24 from Rs 3.38, EconomyNext reported from the interim accounts.

Strong top line, squeezed bottom line

Gross written premiums rose 18.1 percent to Rs 12.25 billion from Rs 10.38 billion. Net written premiums grew 17.3 percent to Rs 11.34 billion after ceding Rs 906.7 million to reinsurers. Total net revenue advanced 17.4 percent to Rs 13.35 billion, helped by a 30.5 percent rise in net finance income to Rs 1.93 billion.

The pressure came from the cost side. Total benefits, claims and expenses rose 34.2 percent to Rs 13.20 billion — almost the whole of net revenue. The single largest driver was the change in insurance contract liabilities, which nearly tripled to Rs 2.81 billion from Rs 955.7 million.

A second factor was accounting rather than operational: Rs 1.28 billion in surplus was transferred from the non-participating life fund to shareholders during the first half of the year, but no surplus transfer was recognised in the September quarter.

Net insurance benefits and claims paid rose 22.2 percent to Rs 6.07 billion. Other operating and administrative expenses climbed 16.3 percent to Rs 2.05 billion, while underwriting and net acquisition costs were nearly flat at Rs 2.03 billion.

Investment income was weaker on both counts: net realised investment gains fell to Rs 13.5 million from Rs 96.9 million, and net fair value gains eased to Rs 62.4 million from Rs 77.6 million.

Pre-tax profit fell 90.4 percent to Rs 147.9 million from Rs 1.54 billion.

A first for the group

The quarter marked the group’s initial consolidation of Bangladesh-based Diamond Life Insurance Company Limited, following the acquisition of a 60 percent controlling stake for Rs 641.5 million on 1 July.

Finance costs jumped 92.6 percent to Rs 300.7 million after the group drew long-term borrowings during the period, lifting total borrowings to Rs 4.89 billion from zero at the end of 2025.

Total assets reached Rs 81.89 billion as of 30 September, up from Rs 68.59 billion in December 2025. Net asset value per share stood at Rs 39.98, or Rs 35.19 excluding the restricted regulatory one-off surplus reserve.

This report rests on a single verified source.