TPL Insurance Limited ($TPLI)

So welcome, everyone. Apologies for a bit of delay. So welcome you all to the investment read for TPL Insurance for 31st December 2025. Before we start with our formal presentation, as we all know that there is an ongoing transaction, which is happening for TPL insurance between [ TPL Corb ] and Jazz International Holdings, a subsidiary of [indiscernible]. So I would request the CEO, Mr. [indiscernible] transaction as we can discuss the presentation in detail. I mean, sir, over to you.

Thank you, [ Ali ]. Just to recap for all the participants of this call, there is a strategic transaction that's currently underway, whereby [ Jazz], which is the largest telecom operator in Pakistan, also has a vibrant financial services business in Pakistan under various banners, including [ Jazz Cash ] and [ Mobiling Microfinance Bank ] is looking to expand its financial services digital footprint in Pakistan and has made an offer for acquiring 75% shares of TPLI, which is our company, being a listed company. This is something that is following the process of the Pakistan Stock Exchange. Currently, we are currently open for the market tender offer, whereby the minority investors have been offered to sell their shares at the price of PKR 30 per share and that is currently underway, and that period will close shortly. What this essentially means is that there will be a transition from an ownership perspective whereby TPL Insurance will become a part of Jazz Group and the structure that is currently envisaged is that Jazz will -- has formed a holdco in Dubai, called [ Jazz ] International Holdings, which is then subsequently part of the overall holdco, which is beyond and they are basically acquiring the shares in that investment vehicle in Dubai, which will also have other financial services, entities like Jazz Cash and [ Mobiling micro finance bank ] also part of the same cohort, essentially creating a financial services engine working with the Jazz customer base, which is the largest in Pakistan, 100 million customers to try and basically improve its financial services footprint. That is where we are in terms of the strategy behind the move from a transactional perspective. This transaction is expected to close by end of June, early July. And on that date, this will -- the shares will be transferred between the existing or sponsor owners, which is TPL Corp, and the new buyers. So that's where we are at. We are in various discussions with the regulators for the requisite approvals, which have primarily been obtained. And we are well underway in terms of the integration. So various integration discussions have already started with Jazz, and we're working with the teams to kind of help us integrate into their ecosystem. So I think unless we want to hold questions for the last, I'm available there any questions. Otherwise, we can go into the presentation.

Thank you, Ami. I think if there are any questions, you can raise hand in me, and we try to take those questions others we would flow through the presentation. To start of, now we will give you a market snapshot of the insurance industry in Pakistan and how we place ourselves along with other insurance industries across the [indiscernible]. So Pakistan is one of the least penetrated insurance industry. And if you see we are at 0.3% normalize market penetration which is well below the 1.6% average in emerging Asia region where we operate in. And of course, we can benchmark sales against the 7.1% global beneficially. But even for the market comparable markets, the packing market is significantly behind their peers. There are multiple reasons. And one of the main reason is because the focus for our industry has always been on the corporate centric businesses. If you look at the Pakistan on life segmentation, you'll see the [indiscernible] business, which is typically our butane business, which typically corporate business is more -- is dominant in our industry composition as compared to the global averages. And even on the water side or health side, majority of the business underwriting are by the corporates and not typically for individual customers. So the footprint that we have of insurance in Pakistan is limited to the documented corporate sector in Pakistan. Whereas the entire population and their requirements for insurance and exposure and risk management is something which is not focused historically by the insurance industry in Pakistan. And that is and has always been our focus area where we operate in that segment, and we are working to develop that segment for the past 2 decades of our existence. We currently hold 2% of the share. But like -- I mean, I was mentioning that with Jazz coming in, the reach that we will have and the distribution channels that opens up for us will provide significant forecast or significant opportunities for the company, to reach those retail customers, where distribution has historically been a challenge. If you see the market, as we see it, is that we have a huge population lying in SCA [indiscernible] and segments where they have the purchasing power to kind of insurance products, manage their risks. And then, of course, there is an impact market as well in Pakistan, which is the lower middle class or the [ SCDs ] classes where the required the risk management, but they don't have the capacity to get those and but there are products available for them where they can get coverages at discounted kind of premiums. So these are the 2 markets that we focus on. So SCD and C segment, which is the impact market, and if we talk about the [ ECA ] and market, which are the service optimal markets for us. What we call service obtained markets is our people who are mostly in the urban sectors, who are digitally aware who understand insurance. So they are in the go-to-market for us in Phase I. And even that market is roughly around 1.4 billion or 1.5 billion -- sorry, 1.5 trillion market, whereas the existing market size of the entire insurance industry is 300 million. So there's a huge -- I mean, even after scaling down our population to urban center areas is the [ AMB ] segments who are digitally aware, potentially insurance were segments. And if we see Tier 1 cities, there is a significant update that can be brought into the insurance industry. So this is the segment that we want to work in and we want to operate in the long term. So they think it's something that we have plans for. The current insurance opportunities, if you start mapping it, from an organization perspective. So motor insurance of [ 30 million ] registered vehicles in [indiscernible], hardly 900,000 are insured. So those [indiscernible] insured vehicles are roughly 40 billion of premium. So if you, of course, populate and project the entire population to a certain level of compliance, it gets to 1.5 trillion opportunity on order only. And that's not at the high end kind of comprehensive kind of products. But the basic -- the third-party liability kind of mandate insurance products, then it take us to that -- there are some interventions that have been made by our provincial government because motor insurance is a provisional subject mentor. So government has taken an initiative this year in March where they have been a mandate for all motor vehicles and [indiscernible] to have ensured -- it reliability insurance to a register vehicles be to transfer their vehicles in their name or the [indiscernible] name and see to pay taxes, annual taxes. So it's a mandate we check on the system of [ Synexis ] now where you need to have a motor insurance product. This is an initiative, of course, which we started with like-minded insurance companies. And now it has started shaping up and when [indiscernible] and it's not about capital dirty are already working on similar arrangements. It's right in hindsight that we will be getting to a third-party liability, which is, of course, by law required, but enforcement was always an issue. Similarly, [indiscernible] is a huge agriculture sector for both crop and livestock that's significantly underpenetrated at the moment, roughly $4 billion worth of premiums against if we look at the entire [indiscernible] sector, with an opportunity of 600 million, around 9 million outbound travels annually, partly an insurance 155,000 policies sold by the entire insurance industry only against a 9 million outbound revenue, 190 million or 170 million in [indiscernible] while mobile users in Pakistan, 200 billion plus production device protection premium opportunity, as [indiscernible] coverage. So the reason for this is predominantly the distribution channels were historically not available. I mean as we see more digitalization and initiatives coming in from the regulator. These -- so these products have started popping up and the traction coming in for all of these products. So Retail segment is something is -- deal products are something that we want to take to the market. and push to the segment that we just discussed in the previous slide. So in terms of where we are and what happened across 2025, what we did, where we stand in terms of the retail market. The are some of the products and unique products that we have launched in the past years that have started shipment, from domestic bus travel insurance to air travel insurance for those -- for domestic passengers, from [indiscernible] insurance to [indiscernible] insurance from [indiscernible] specific health insurance product domestic staff insurance products, from making your own product to a cyber insurance. So these are all unique products that we launched in the year 2024, 2025, which benefited and we benefited from these products in the last year. And there, of course, these are not -- and this is not a complete list. There are, of course, other products as well, which we have started marketing to various customer segments. If you talk about our channels, banking is one of the largest channels. We had a growth of 24% last year, banking industry generally was -- I mean, insurance to banking was struggling for the last couple of years. We have -- we work with around 13 banks. These are some of the banks where we included new products and started rolling out different initiatives in the year 2025 and 2026 is of course also there are a few products in the works and there is a bit constant growth trajectory that we see in this segment. Similar team for the retail segment, which is predominantly the order business that we underwrite through leaderships saw a growth of 48%. This was mainly because we started off certain initiatives with to manufacturers for the vehicles that they are now offering on installment. So in the year 2024, this initiative was started initially with Honda. And now we work with partners. We are different within different or board manufacturing alliances where the auto manufacturers, auto wiring vehicles on installments, and we are sharing that, and we are, of course, ensuring that those portfolios, not only for auto insurance, but also for it -- also for the installments and the credit risk that these are manufacturers are taking.

I think there's a question -- you can quickly, of course, ask [indiscernible]?

Yes. Sir, I want to ask about that how do you see the acquisition by [ Jez ] for future growth of the company?

All right. Sure. So I think we touched upon it briefly. Like we said, that there is a huge potential on the retail side in Pakistan, retail insurance in Pakistan. That's where the biggest [ proportionaty ] line. And historically, the challenge for insurance companies was the distribution. The distribution of policies to the masses through various means to B2B, B2C channels was a not very cost effective mean it was -- and there were a challenge channels other than the [ bancassurance], which historically insurance companies have used is typically in the life business. So when we talk about telecoms, telecoms have a huge penetration in the retail segment across the country, across all socioeconomic segments. So the opportunity is huge because we can decide on which social economic segment, we want to promote which product, how to tap them. So those will, of course, engage with telecoms to use their data to identify the customer pockets or customer leads that we want to tap. We will, of course, request them with data as we have already started some engagements on that front. To see now we can improve our, of course, distribution to the telecoms as well there was on multiple ways. They are -- I mean wallings not the only channel. There are other ways to connect with those customers. So the opportunity size is huge, and retail is the focus area. But again, with this acquisition, it's not only the telecom customers that we are looking at. Jazz typically have a huge mobile wallet base as well with the [indiscernible] cash customer around 50 million Jazz cash customers. They operate in the micro finance segment as well. We have a significant penetration in the micro finance segment and also on the corporate side because they work with large corporates on various different fronts, not only from -- as a telecom provider, but they have their IT prestructured services, which they go on to different corporates. They have other services which we provide to corporates as well for -- from a data center perspective and all. So the engagements, of course, that we can initiate using their customer relationship is much higher as compared to just telecom. And those are all the opportunities that we are mapping. And we, of course, this transaction is expected to conclude in the month's time. We are already, of course, public offer for the [indiscernible] already in the public, and it's effective. So once of course the transaction concludes, the opportunities will start rolling in. And -- and of course, I mean we show the numbers next year, but that is something which we will -- of course, what we have already started working in. And for the next 6 months, you will see a lot of changes and a difference in our results going forward as well. So moving on our digital initiatives. This is an area which is, of course, close to our hard and smart -- these are the policies which we are selling through various alliances. We did 36 million policies last year through various interventions and integrations. There are all different cost products that we are working on with other partners as well. So it's an ongoing exercise. We are constantly increasing the number of products and partners and number of policies. These are normally small ticket size policies. The revenue is not huge, a small period as well. So these are not typically like 1-year insurance policy or 3 [ and ] service policy. These are 1 day, 1 month. These are policies like if you are in [indiscernible] motorway you start the insurance when you get on the motor and the coverage ends when you exit the motorway. So these are small ticket limited time policies, and that's an area which we are looking to grow. And of course, Jazz, like we were discussing Jazz network is going to help us out in time on business growth. On the corporate side, we had a slightly muted year last year, especially when it comes to the broker business. As you all know, last year, there was a decrease in premium or exposure, especially on the [ IBP ] side and certain other ancillary also, industries. So that was an impact, which we absorbed last year. So we had -- this is, of course, not the major business segment for us. That is 30% of our total portfolio. So the business was down on the corporate front, mainly on those. But there's something which, of course, we are looking to [ recoup]. And in the first 6 months, we have generated good premiums on the corporate side as well. When moving on contact center, of course, continues to be our -- one of our major revenue in the generation unit. We are constantly improving our contact center premiums as well on a year-on-year basis, this is mostly the direct business that we [indiscernible] through our growth center. And this is not the digital small policies. There is a separate segment. But these are the normal 1-year policies [indiscernible] has been traveling out of products that we do and also the renewals that we shared. In terms of our plans and portfolio, in terms of our total portfolio on insurance, 70% was motor insurance, 10% for [indiscernible], followed by miscellaneous and health business, 7% each. Equity is a core focus area going forward as well. This is an area which we think will grow significantly. This is an area which government is also working on growth. This is a provincial matter. We have certain products that we have with various governments as well. Similarly on motor, this continues to grow. However, the focus is not only on the motor segment. We are constantly looking to grow our miscellaneous and health, [ Marine ] business as well. If I talk about the overall premium growth, so we had a 15% growth in 2025. The net earned premium was -- growth was around 7%, 6%. This has been normally because of the redemption that we have the extra retention that we had really like. I mentioned that our focus was more on the motor and health side last year as compared to corporate where we lost an account and corporate is typically lower retention. So most of the premium is [ ceded ] to the reinsurers, but we manage higher premiums on the lines where we retain more and hence, our 27% growth on our top line. The claims were, of course, in line with the growth and the [indiscernible] overall growth in terms of I mean, premium reflected the [indiscernible] increase in claims and commission management expenses were increased by 19%. Again, that was an efficiency improved by 3%. So a combined ratio, which was around 109% was brought down to 106%. We are constantly bringing it down and the anticipation that by the end of this year, we should have 100 -- a combined ratio between 102%. So the business operating profit for the year 2025 was million as compared [indiscernible] to 145 million last year. That was predominantly because of the reducing investment income rates. Our investments are mostly an interest-bearing now as the interest rates went down. The investment income, of course, went down as well, resulting in a decrease in profitability. We constantly try to stay active and create awareness in the market at different forums, different -- through different means. We get digital, we had our leadership [indiscernible] market and introducing insurance at different forums, be digital [indiscernible] to explore, of course, opportunities to showcase our products. And similarly, I mean, in the midstream media, like press releases and radio interviews, we didn't do any TV campaigns like in 2024. Otherwise, we try to be as -- project products wherever we can through different channels. This is an area which our focus and a lot of investments going in that area. So we have started adopting AI at all our departments. This is just a snapshot of what we did in the year 2025. So there are a lot of initiatives across all departments, with marketing, underwriting claims, finance. Even sales that wherever we can use AI to automate basic task and use the [indiscernible] for our various operations and improved customer experience. We are using it. The AI [indiscernible] lot of other projects are also in the process. Similarly for other digitalization projects, we are -- we have a digital team that is converting our entire processes through digital -- I mean we are transforming our processes digitally. All our approval flows are now digitized. We don't have [indiscernible] approvals or onboarding of agents and different partners in [indiscernible] wires and surveys and hospitals and all of the partners that we work with. The vendors that we work with is digitalized. All the KYC procedures are also [indiscernible]. [indiscernible] don't do any physical KYCs, even if we receive a physical KYC from a customer, we try to of course, to run the automatic process too and show compliance to a digital manner. So all of the processes and mostly on the operations side are now transformed into digital processes. And we have a proper project management system that we have deployed last year to improve the entire process of digitalization of the company and with the various initiatives that we are taking. To improve our sales and our customer experience and adapt for the customers. We have deployed a CRM, which is hubs. And we have onboarded I mean most of our CI users are mapped on a marketing campaigns and [indiscernible] specially the digital campaigns. And even the dispositions and all the interactions that happens with our customers. We had 4 complaints, be it for calling to customers for renewals or the lease that we are generating the digital means if we want to close those leads and convert those deals, all of that is currently happening in the hub sport. And we are, of course, trying to implement that on our corporate accounts as well. And we are ritually [ trying ] this is something which generally is not used in the industry. So -- I mean it's new for the corporate customers has been. And that is where the focus is this year that we will implement this across all our channels. We have digital or non-digital. So with the customer experience that we have should be the same across the board. It, of course, helps us in unified, of course, its unified platform where all our services are connected through this platform, and the [indiscernible] are being monitored, any red flags and any [indiscernible] is raised by the system. So intervention get been made, and the problem can be solved digitally. So this is it on the presentation. Any questions, anything that we can take, we will be happy to take any questions. Think this is it then. If there are no questions, we can conclude this meeting. All right. Thank you, everyone for your presence. If there are no questions, we conclude it. Thank you.