Pakistan General Insurance Company Announces Successful Board Reforms and Capital Increase

Karachi, The Pakistan General Insurance Company Limited has reported significant corporate governance improvements and financial adjustments, according to a recent filing with the Pakistan Stock Exchange (PSX). The company detailed these changes in response to an inquiry from PSX, citing a letter dated April 1, 2024.

The insurer has completed assembling its Board, with directors now approved by the Securities and Exchange Commission of Pakistan (SECP) under the stringent Fit and Proper Criteria of the Insurance Companies (Sound and Prudent Management) Regulation, 2012. It has also fulfilled documentation requirements as mandated by the Companies Act, 2017, and the Companies (General Provisions and Forms) Regulations, 2018. These documents have been duly acknowledged by the SECP’s Company Registration Office, which issued certified copies of the submissions.

Further enhancing its governance framework, the company has set up Board Committees in line with the Code of Corporate Governances applicable to listed and licensed entities. A Compliance Department has also been established, reinforcing the company’s commitment to maintaining high standards of corporate conduct.

Financially, the company has increased its Authorized Share Capital from Rs.500 million to Rs.600 million, a move supported by its shareholders during the Extraordinary General Meeting (EOGM) held on September 30, 2023. Subsequently, the Board approved an increase in Paid-up Capital following clearance from the SECP to meet the minimum requirements. This was announced after a board meeting on April 22, 2024.

Additionally, the company has begun implementing a “Business Revival Plan,” initially endorsed by shareholders at the EOGM and subsequently approved by relevant authorities. The SECP has also lifted certain previous restrictions, acknowledging the management’s efforts toward achieving corporate excellence. The company assures further communication of any developments in compliance with PSX regulations.