⚡ Flash Summary

PICIC Insurance Limited reported a loss after taxation of PKR (14.736) million for the period ended September 30, 2025, compared to a profit of PKR 5.556 million in the same period last year. This translates to a loss per share of PKR (0.42) versus earnings per share of PKR 0.16 in 2024. The company has stopped underwriting and is in the process of merging with Crescent Star Foods (Private) Limited. The modified scheme of arrangement has been filed and awaits approval from the High Court.

📌 Key Takeaways

• 📉 Loss after taxation: PKR (14.736) million in 2025 vs. profit of PKR 5.556 million in 2024.
• 📉 Loss per share: PKR (0.42) in 2025 vs. earnings per share of PKR 0.16 in 2024.
• 🛑 Underwriting stopped: Company has ceased underwriting activities.
• 🤝 Merger in progress: Merger with Crescent Star Foods (Private) Limited is underway, pending High Court approval.
• ⚖️ Scheme of arrangement: Modified scheme filed, awaiting High Court approval.
• 🚫 No surrender of license: The company will not surrender its insurance license as per the modified scheme.
• ✅ Shareholder approval: Special resolution approving the modified scheme passed by shareholders in the AGM.
• 🏢 Investment income: PKR 12.154 million in 2025 vs. PKR 12.544 million in 2024.
• 💸 Total Assets: PKR 109.066 million vs. PKR 105.307 million
• Equity Decrease: Total equity is negative 31.058 million versus negative 10.974 million
• Insurance Solvency: Company is not meeting the minimum solvency requirement

🎯 Investment Thesis

Given the significant losses, the cessation of underwriting, and the uncertainty surrounding the merger, a SELL recommendation is warranted. The company’s future hinges on the successful completion and integration of the merger with Crescent Star Foods, which is a highly speculative situation. There is insufficient visibility to provide a price target at this time.