Crescent Star Insurance Resumes Guarantee Business

Crescent Star Insurance Limited (CSIL) declared on Thursday the recommencement of its guarantee operations.

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

CSIL stated that the Islamabad High Court has nullified the directives issued by the Securities and Exchange Commission of Pakistan (SECP), which instructed the company to discontinue its guarantee business.

Last year, SECP had put a stop to the guarantee business through a directive issued under Section 60 of the Insurance Ordinance, 2000.

Reportedly, Crescent Star had provided guarantees worth Rs 229 billion without securing the essential collateral or establishing legitimate reinsurance agreements.

Established in 1957 under the Companies Act, 1913 (now the Companies Act, 2017), CSIL operates as a Public Limited Company in Pakistan.

The corporation is involved in the provision of general insurance services, excluding life insurance.