Crescent Star Insurance : Transmission of Quarterly Report for the Period Ended Septmber 30, 2023

Quarterly Report September 30, 2023 (Un-Audited)

Crescent Star Insurance Ltd.

ESTD: 1957

NATION WIDE BRANCH NETWORK

MOTOR

HEALTH

FIRE

MARINE

ENGG

TRAVEL

LIVESTOCK

CROP

CONTENTS

Vision / Mission Statements

Company Information

Directors' Report to the Members on Unconsolidated Financial Statements Directors' Report to the Members on Unconsolidated Financial Statements (Urdu) Unconsolidated Financial Statements

Directors' Report to the Members on Consolidated Financial Statements Directors' Report to the Members on Consolidated Financial Statements (Urdu) Consolidated Financial Statements

Branch Network

Company Vision

• To serve with excellence.
• Excellence achieved through our corporate mission.
• The brand name of CSI with a vision to expand with prudent approach and provide the Insurance Service to Pakistan Industry on sound footing.

Company Mission

• First and foremost to secure the interest of our policy holders by adopting proper risk management techniques, prudent financial planning and maintaining reinsurance arrangements with world-class reinsurers.
• To ensure profitability to our reinsurers who afford us underwriting capacity.
• To recognize human resources as the key element in progress and to provide our officers and field force due recompense for their efforts in building up the company.
• To generate operational profits and dividend return for our shareholders of the Company.

Values

• Integrity
• Transparency
• Passion
• Team Work
• Corporate Social Responsibility

Company Information

Board of Directors	Mr. Naim Anwar (Chief Executive Officer)*
	Mr. Tanveer Ahmed*
	Mr. Suhail Elahi*
	Mr. Shaikh Waqar Ahmed*
	Mr. Rashid Malik*
	Ms. Naveeda Mahmud*
	Ms. Huma Javaid*
	Ms. Rabia Omar Hassan*
Chief Executive Officer	Mr. Naim Anwar*
Management	Mr. Naim Anwar (Chief Executive Officer)
	Mr. Tanveer Ahmed (Resident Director)
	Mr. Suhail Elahi (Resident Director)
	Mr. Malik Mehdi Muhammad (CFO & Company Secretary)
	Syed Danish Hasan Rizvi (Head of Internal Audit)
Board Audit Committee	Mr. Shaikh Waqar Ahmed (Chairman)
	Ms. Naveeda Mahmud
	Ms. Huma Javaid
Board H.R & Remuneration Committee	Ms. Huma Javaid (Chairman)
	Mr. Naim Anwar
	Mr. Shaikh Waqar Ahmed
Board Investment Committee	Mr. Naim Anwar (Chairman)
	Mr. Shaikh Waqar Ahmed
	Ms. Huma Javaid
Chief Financial Officer & Company Secretary	Mr. Malik Mehdi Muhammad
Auditors	Crowe Hussain Chaudhury & Co.
	Chartered Accountants
Legal Advisor	Ms. Huma Naz, Soomro Law Associates
Bankers	Habib Bank Limited
	Faysal Bank Limited
Share Registrar	F. D. Registrar (SMC-Pvt.) Limited
	Office No. 1705, 17th Floor, Saima Trade Tower - A
	I. I. Chundrighar Road, Karachi
	Tel #: [phone] Fax #: [phone]
Registered & Head Officer	2nd Floor, Nadir House
	I. I. Chundrigar Road
	P.O. BOX No. 4616, Karachi

*subject to Sound and prudent approval from the SECP.

UNCONSOLIDATED

Financial Statements

for the Period Ended

September 30, 2023

Directors' Report to the Members on Condensed Interim Unconsolidated Financial Information

On behalf of the Board of Directors, I am pleased to present to you the unaudited condensed interim unconsolidated financial statements for the nine months period ended 30 September 2023.

General Review

The gross premium written for the nine months has been Rs. 252.657 million as compared to Rs. 123.135 million for the corresponding figures last year (+105%). The net premium for the period has been recorded as Rs. 196.451 million against Rs.79.776 million (+146%) of the corresponding period. The profit after tax recorded at Rs. 143.437 million (+187%), Earnings per share stood at Rs. 1.33 (+190%).

The Company continues to maintain its reservations on Bank Enlistment / Limits matter which has been raised on every forum and in all presentations. In sheer violation of legislation the Banks and departments continue their selective policy hurting the penetration of Insurance in Pakistan which is one of the lowest as compared to other countries.

The merger petition of Crescent Star Foods (Pvt) Ltd with and into PICIC Insurance Ltd is still pending before the Honorable Sindh High Court, however, the Company is hopeful for an early hearing and completion of the approval process.

The Company is in process and awaits settlement of payment of the Advance against Issuance of Shares in Dost Steels Ltd (DSL). This will be possible as soon as the deal between sponsors and new investors in DSL achieves finality.

The Company by the grace of God maintains a low loss ratio as compared to the industry and competitors.

Performance Highlights

The comparative financial highlights for the nine months period ended 30 September 2023 and 2022 are presented below:-

Rupees in millions (except for EPS)	30 September	30 September	Increase / (Decrease)
	2023	2022	Amount	%
Gross written premium	252.657	123.136	129.521	105.19
Net premium	196.451	79.776	116.675	146.25
Profit / (loss) before tax	140.468	68.552	71.916	104.91
Profit / (loss) after tax	143.437	49.998	93.439	186.89
Total assets	1,636.511	1,521.852	114.659	7.53
Paid-up capital	1,076.950	1,076.950	-	-
Earnings per share (EPS)	1.33	0.46	0.87	189.13

Future Outlook

Your Company is looking forward to the positive outcome of the merger and investment in DSL which can give a strong future strategy to open up areas of interest which can produce positive results favoring the stakeholders.

Acknowledgments

The Directors of your Company would like to take this opportunity to thank Securities and Exchange Commission of Pakistan, Pakistan Stock Exchange, Insurance Association of Pakistan, State Bank of Pakistan, the Banks and Financial Institutions and to all the stakeholders for their continued support and cooperation.

Tanveer Ahmed	Naim Anwar
Director	Managing Director & CEO
Karachi: October 20, 2023

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CRESCENT STAR INSURANCE LIMITED

CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT SEPTEMBER 30, 2023

ASSETS

Note

September 30,	December 31,
2023	2022
(Un-audited)	(Audited)
----------------- (Rupees)	------------------

Property and equipment	7
Investments in subsidiaries	8
Investments
Equity securities	9
Loans and other receivables	10
Insurance / reinsurance receivables
Premium due but unpaid
Amounts due from other insurers / reinsurers
Deferred commission expense / acquisition cost
Prepayments
Cash and bank	11
Total assets
EQUITY AND LIABILITIES
Capital and reserves attributable to
the Company's equity holders
Ordinary share capital
Discount on issue of right shares
Reserves	12
Total equity
Liabilities
Underwriting Provisions
Outstanding claims including IBNR
Unearned premium reserves
Premium deficiency reserves
Deferred taxation
Borrowings
Premium received in advance
Insurance / reinsurance payables
Other creditors and accruals	13
Provision for taxation
Total liabilities
Total equity and liabilities
Contingencies and commitments	14

9,304,931

212,119,200

152,698,638

948,610,590

225,637,625

66,773,149

15,448,519

-

5,918,492

1,636,511,144

1,076,950,410

(199,650,000)

375,689,160

1,252,989,570

62,913,323

152,920,608

-

-

-

2,348,565

-

136,588,349

28,750,729

383,521,574

1,636,511,144

9,758,461

150,019,600

109,602,600

988,042,672

190,370,042

-

13,665,395

26,400

5,606,296

1,467,091,466

1,076,950,410

(199,650,000)

232,117,465

1,109,417,875

65,564,985

97,965,519

1,878,957

-

-

1,440,726

433,322

154,385,528

36,004,554

357,673,591

1,467,091,466

The annexed notes from 1 to 24 form an integral part of these unconsolidated financial statements.

Chief Executive/ Principal Officer

Director

Director

Director

Chief Financial Officer

CRESCENT STAR INSURANCE LIMITED

CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE PERIOD ENDED SEPTEMBER 30, 2023

Note

Quarter ended

September 30,	September 30,
2023	2022

------------- (Rupees) -------------

Nine Months Period Ended

September 30,	September 30,
2023	2022

------------- (Rupees) -------------

Net insurance premium	15
Net insurance claims	16
Premium deficiency
Net commission expense and other acquisition costs	17
Insurance claims and acquisition expenses
Management expenses
Underwriting results
Investment income	18
Other income
Other expenses
Results of operating activities

Finance costs

Profit before tax

Taxation

Profit after tax

Other comprehensive income / (loss)

74,743,346

119,330

-

(3,088,819)

(2,969,489)

(28,210,803)

43,563,054

602,062

338,894

(1,742,772)

42,761,238

-

42,761,238

1,448,101

44,209,339

31,704,720

(269,566)

-

3,045,737

2,776,171

(23,282,858)

11,198,033

59,454

17,631,531

(1,933,967)

26,955,051

-

26,955,051

(7,934,659)

19,020,392

196,450,693

(1,226,341)

1,878,957

(11,986,039)

(11,333,423)

(80,880,998)

104,236,272

16,784,853

22,334,297

(2,887,601)

140,467,821

-

140,467,821

2,969,443

143,437,264

79,776,564

(1,412,581)

-

2,257,312

844,731

(66,444,527)

14,176,768

8,976,920

48,307,160

(2,908,757)

68,552,091

-

68,552,091

(18,554,004)

49,998,087

Unrealized gain/(loss) on available for sale investments during the period - net of deferred tax

Reclassification adjustments relating to available for sale investments disposed off - net of deferred tax

Other comprehensive income / (loss) for the period

Total comprehensive income for the period

(6,741,926)

-

(6,741,926)

37,467,413

3,907,941

-

3,907,941

22,928,333

134,433

-

134,433

143,571,697

251,238

-

251,238

50,249,325

Earning per share	19	0.41	0.18	1.33	0.46

The annexed notes from 1 to 24 form an integral part of these unconsolidated financial statements.

Chief Executive/ Principal Officer

Director

Director

Director

Chief Financial Officer

CRESCENT STAR INSURANCE LIMITED
CONDENSED INTERIM UNCONSOLIDATED CASH FLOW STATEMENT (UN-AUDITED)
FOR THE PERIOD ENDED SEPTEMBER 30, 2023
	September 30,	September 30,
Operating cash flows	2023	2022
------------- (Rupees) -------------

(a) Underwriting activities

Insurance Premium received Reinsurance premium paid Claims paid

Commission paid Commission received Management expenses paid

Net cash flow from underwriting activities

(b) Other operating activities

218,297,653

(68,458,087)

(3,878,003)

(13,988,196)

219,033

(100,489,773)

31,702,627

62,667,324

(273,726)

(2,925,514)

(3,732,117)

-

(58,479,029)

(2,743,062)

Income tax paid

Other operating payments

Net cash outflow from other operating activities

Total cash inflow from all operating activities Investment activities

(4,284,383)

61,792,780

57,508,397

89,211,024

(3,962,940)

(5,061,983)

(9,024,923)

(11,767,985)

Profit received Dividend received Proceeds from investments

Proceeds from / (Payments for) disposal of investments Fixed capital expenditure

Proceeds from sale of property and equipment

Total cash inflow/(outflow) from investing activities Financing activities

Finance costs paid

Borrowing under Musharaka arrangements obtained - net

Total cash (outflow) from financing activities Net cash inflow /(outflow) from all activities Cash and cash equivalents at beginning of year Cash and cash equivalents at end of period

Reconciliation to unconsolidated profit and loss account

Operating cash flows

Depreciation expense

Amortization expense

Profit on disposal of property and equipments

Dividend income

Other investment and other income

Finance costs

Increase in assets other than cash (Decrease) in liabilities other than borrowings Provision for taxation

Profit after taxation for the period

1,046,700

15,738,153

(105,494,074)

432,868

(622,475)

-

(88,898,828)

-

-

-

312,196

5,606,296

5,918,492

89,211,024

(1,076,005)

-

-

15,738,154

1,046,700

-

64,365,373

(33,101,808)

7,253,826

143,437,264

85,389

8,891,056

(8,222,847)

-

(45,500)

-

708,098

-

-

-

(11,059,887)

13,868,323

2,808,436

(11,767,985)

(1,217,536)

-

-

8,891,531

85,389

-

121,043,665

(52,445,913)

(14,591,064)

49,998,087

The annexed notes from 1 to 24 form an integral part of these unconsolidated financial statements.

Chief Executive/ Principal Officer

Director Director

Director Chief Financial Officer