Crescent Star Insurance Limited (CSIL) reported a loss in the first quarter of 2026 as a sharp decline in premium income and investment losses weighed on the company’s financial performance. According to the company’s unaudited financial results for the quarter ended March 31, 2026, net premium revenue fell by 39% year-on-year to Rs. 19.11 million from Rs. 31.27 million in the corresponding period last year.
The insurer posted a loss after tax of Rs. 39.08 million compared to a profit of Rs. 12.89 million in the same period of 2025. Earnings per share (EPS) declined to a loss of Rs. 0.26, versus positive EPS of Rs. 0.12 a year earlier.
In its directors’ report, the company attributed the decline in profitability primarily to the suspension of Afghan transit trade operations, which had previously been a significant source of business and premium generation. The reduction in business activity adversely impacted underwriting performance during the quarter.
Underwriting operations recorded a loss of Rs. 15.70 million, compared with an underwriting profit of Rs. 1.73 million in the same period last year. Investment activities further pressured earnings, with the company reporting an investment loss of Rs. 26.56 million, largely due to losses on the sale of available-for-sale investments.
Despite the weak earnings performance, CSIL’s total assets increased by 9% to Rs. 1.69 billion, while paid-up capital rose 38% to Rs. 1.49 billion following a rights issue during the quarter. Cash and bank balances also strengthened significantly, reaching Rs. 116.08 million at the end of March 2026 compared to Rs. 2.69 million at the beginning of the year.
Looking ahead, the company highlighted a potentially positive development following the Sindh High Court’s approval of a modified scheme of arrangement for the merger of Crescent Star Foods (Private) Limited into PICIC Insurance Limited. Under the approved scheme, PICIC Insurance will issue over 7.9 billion ordinary shares to shareholders of Crescent Star Foods, including CSIL. Management believes the conversion of its investment into shareholding in PICIC Insurance Limited will be beneficial for the company once the required regulatory and procedural formalities are completed.
The company stated that it remains focused on navigating current business challenges while pursuing opportunities to strengthen its investment portfolio and improve long-term shareholder value.
