Karachi: PICIC Insurance Limited has released its condensed interim un-audited financial statements for the first six months of the year, ending June 30, 2024. The report highlights the ongoing process of a merger with Crescent Star Foods (Private) Limited, which is currently awaiting approval from The High Court of Sindh.

According to information available from the Pakistan Stock Exchange (PSX), the external auditor’s review of PICIC Insurance’s financial statements was described as limited in scope. Despite ceasing underwriting activities, the board assessed its overall performance and effectiveness as satisfactory, based on evaluations of the company’s vision, mission, values, strategic planning engagement, and financial resource management.

The impending merger and planned surrender of its insurance license signify a strategic pivot for PICIC Insurance, steering it away from the insurance sector. This move will exempt the company from obligations like maintaining solvency prescribed under the Insurance Ordinance.

Financially, the company reported investment income of 12.54 million rupees for the first half of 2024, up from 8.25 million rupees in the previous year. Profit after taxation stood at 7.34 million rupees, down from 16.00 million rupees in 2023. The earnings per share were reported at 0.21 rupees compared to 0.46 rupees the previous year.

The designated market category for this news involves corporate mergers and financial disclosures. As PICIC prepares to exit the insurance sector, management is confident that post-merger, the company will unveil a business plan and strategy designed to diversify interests and safeguard stakeholder assets, ensuring the company's sustainability as a going concern.