Karachi: The Directors of Standard Insurance Company Limited have disclosed in their 54th Annual Report that the company's insurance activities remain suspended. Despite this, the directors have assured stakeholders that they are continuing to meet all financial and statutory obligations as required by law.

The company's efforts to bolster revenue have seen progress through the successful collection of rental income. Legal proceedings initiated by the company resulted in the recovery of back rent from tenants, following orders from the Sindh High Court in Karachi. This development marks a positive step in the company's endeavors to address its financial challenges.

Despite these efforts, the company reported an earnings per share of a negative 13.02 rupees. The financial statement underscores the impact of the suspended insurance operations on the company's earnings.

The Securities and Exchange Commission of Pakistan (SECP) clarified in a letter dated October 7, 2020, that due to the company's failure to renew its insurance license under the Insurance Act, there is no requirement to issue a revocation or any No Objection Certificate (NOC) for changing the company name. Consequently, the company has initiated the process of altering its name with the SECP's Registration Office in Karachi. Completion of this process will allow the company to pursue business activities under a revised Memorandum and Articles of Association, aligned with the new name.

According to information available from the Pakistan Stock Exchange (PSX), the company remains in compliance with all necessary market regulations as it navigates these changes. The market has categorized the company's financial movement as a very large or significant move, reflecting the substantial changes in its operational and financial status.

The company's directors have expressed gratitude to the SECP, particularly its Insurance Department, for their continued support and cooperation during this transitional phase. They also acknowledged the challenges ahead, expressing reliance on divine assistance for overcoming future obstacles.

This report highlights the ongoing complexities faced by Standard Insurance Company Limited as it seeks to realign its business strategy in response to regulatory and operational challenges.