Habib Insurance was established in 1942 in Bombay, India with a paid-up share capital of Rs.2.5 million. After independence, Habib Insurance Company moved to Pakistan and then became a more prominent name in the insurance industry. In 1972, the group had to face a major debacle; the Government of Pakistan nationalized the life insurance business of Habib Insurance. Later in 1974, the renowned Habib Bank was also nationalized.