Karachi: PICIC Insurance Limited has reported a loss in its operating results for the period ended September 30, 2024, reflecting a challenging phase as the company navigates a pending merger and plans to exit the insurance sector. According to the latest financial statements released by the company, there has been a noticeable decline in comprehensive income and a shift in the company’s business strategy following the decision to stop underwriting activities.

For the nine months ending in September 2024, PICIC Insurance recorded no gross or net premium revenues, marking a significant shift from its core insurance operations. The company reported a loss from underwriting activities of 1.79 million rupees for the quarter, as management expenses outpaced the total income from investments, which stood at 12.54 million rupees. This investment income represents a notable increase from 8.25 million rupees in the corresponding period last year.

According to information available from the Pakistan Stock Exchange (PSX), the company’s planned merger with Crescent Star Foods (Private) Limited remains unresolved, pending approval from the High Court of Sindh. The merger, integral to PICIC Insurance’s strategy to diversify its business interests, has been delayed due to regulatory challenges, including the Securities and Exchange Commission of Pakistan’s (SECP) initial rejection of the company’s request to surrender its insurance license.

Financially, PICIC Insurance has witnessed a decrease in total equity from negative 15.95 million rupees at the beginning of the year to negative 12.36 million rupees by the end of September 2024. The company’s assets slightly increased to 101.67 million rupees, while liabilities stood at 114.03 million rupees.

The directors express their commitment to navigating the ongoing changes and anticipate that the completion of the merger will allow the company to embark on a renewed strategic path with diversified interests, ultimately aiming to enhance stakeholder value.