Karachi: Crescent Star Insurance Ltd. reported a mixed financial performance for the nine-month period ending September 30, 2024, as detailed in the Directors' Report to the Members on Condensed Interim Unconsolidated Financial Information. The company experienced a decline in net premium and profit after tax, while investment income saw a significant increase.
The net premium for the period amounted to Rs. 192.436 million, representing a 2% decrease from Rs. 196.450 million recorded in the corresponding period last year. Despite this, the company reported a substantial increase in investment income, which rose by 69% to Rs. 28.305 million from Rs. 16.785 million in the previous year. However, the profit after tax was reported at Rs. 125.049 million, marking a 13% decrease, with earnings per share also dropping by 13% to Rs. 1.16.
According to information available from the Pakistan Stock Exchange (PSX), various factors have contributed to the financial results. The company cited bank enlistment and limits as significant barriers to growth for smaller companies, citing persistent violations of Pakistani laws, including the Competition Act, and lack of resolution from the insurance industry and relevant authorities.
The pending merger of Crescent Star Foods (Pvt) Ltd with PICIC Insurance Ltd since 2017 remains a critical issue for the company, with efforts ongoing to expedite approval from the Sindh High Court. Additionally, Crescent Star Insurance is engaged in advanced discussions with a potential investor in Dost Steels Ltd, aiming to protect its stake while seeking collaboration opportunities.
The company also reported a gross written premium of Rs. 63.092 million, a sharp decrease of 75.03% compared to last year's Rs. 252.657 million. Total assets stood at Rs. 1,560.410 million, a 4.65% decrease from Rs. 1,636.511 million in the previous year. Despite these challenges, the company maintained an optimal loss ratio through selective business practices.
Looking ahead, Crescent Star Insurance is optimistic about the potential positive outcomes of the pending merger and investment discussions, which are expected to enhance future strategies and benefit stakeholders. The company expressed gratitude to various institutions, including the Securities and Exchange Commission of Pakistan and the Pakistan Stock Exchange, for their continued support and cooperation.