PACRA maintains IFS Rating of Crescent Star Insurance Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- January 30, 2023 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

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Crescent Star Insurance Limited (CSIL or the Company) predominantly has a holding Company structure through building its non-insurance strategic book. IFS (Insurer Financial Strength) rating of CSIL portrays the Company's relative ability to meet liabilities towards the policyholders. The rating reflects Crescent Star Insurance's strategy directed towards direct line insurance in motor and miscellaneous segments.

Focus remains on underwriting risk-free business. This has enabled the Company to improve underwriting losses, though the expense ratio is still high. A considerable investment has been undertaken by CSIL in Dost Steels Limited (DSL) which has remained non-cash producing over an extensive period. In order to convert DSL into an income generating unit, a revival plan is being chalked out for quite some time aimed at providing much required leadership, as well as requisite funding for working capital and operational needs.

Further, a contingent merger of a subsidiary is further expected to unlock synergistic benefits for the Company, materialization of which remains crucial. The Company's current liquidity profile matches the risk parameters for the size of business operations, however...