Crescent Star Insurance Resumes Guarantee Business

Crescent Star Insurance Limited (CSIL) announced the resumption of its guarantee business on Thursday.

The company communicated this development in a notification to the Pakistan Stock Exchange earlier today.

CSIL stated that the Islamabad High Court had nullified the Securities and Exchange Commission of Pakistan’s (SECP) directives that had instructed the company to halt its guarantee business.

Last year, SECP had suspended the guarantee business via a directive issued under Section 60 of the Insurance Ordinance, 2000.

This action followed findings that Crescent Star had issued guarantees totaling Rs 229 billion without securing the necessary collateral or establishing valid reinsurance agreements.

Crescent Star Insurance Limited was established in Pakistan in 1957 as a Public Limited Company, operating under the Companies Act, 1913, which is now recognized as the Companies Act, 2017.

The company’s primary activity involves delivering non-life general insurance solutions.