Karachi: Crescent Star Insurance Ltd has released its unaudited condensed interim unconsolidated financial statements for the first half of the year ending June 30, 2024. According to information available from the Pakistan Stock Exchange (PSX), the company reported significant financial growth during this period, with a marked increase in net premiums and profits.
In the first half of 2024, Crescent Star Insurance recorded a net premium of Rs. 143.758 million, an increase from Rs. 121.707 million during the same period in the previous year. Profit after tax rose to Rs. 114.709 million, with earnings per share reaching Rs. 1.07. This performance highlights the company's successful strategy in underwriting profitable business classes and maintaining a healthy loss ratio.
Despite these positive results, the company faces ongoing challenges with bank enlistment and credit limits, particularly affecting smaller companies within the industry. The lack of support from industry associations, regulators, and relevant authorities continues to be a concern. Crescent Star Insurance is actively seeking assistance to help not only itself but also the broader insurance industry to ensure a level playing field for all registered insurers.
Additionally, the company is awaiting the approval of a merger between Crescent Star Foods (Pvt) Ltd and PICIC Insurance Limited from the Sindh High Court. The anticipated Scheme of Arrangement is expected to be approved within the current year, which could significantly benefit Crescent Star Insurance's investment portfolio.
The report also mentions an issue noted by auditors regarding the charging of interest on an advance amount to DSL, for which there is no written agreement. The management asserts that the interest charged is lawful, despite the auditors' reservations.
Looking forward, Crescent Star Insurance plans to expand its core business and enter the developing individual client market, aiming to activate its Investment Portfolio for increased earnings following the expected merger.
The Directors of Crescent Star Insurance expressed their gratitude to the Securities and Exchange Commission of Pakistan, the Pakistan Stock Exchange, the Insurance Association of Pakistan, the State Bank of Pakistan, financial institutions, and all stakeholders for their continued support and cooperation.