• Wednesday, Nov 25, 2020
  • Last Update : 02:05 am

25 out of 35 non-life insurers report higher earnings

  • Published at 09:51 pm August 6th, 2019
25 out of 35 non-life insurers report higher earnings

Ten insurance companies registered negative growth in the same period

Earnings per share (EPS) of 25 listed non-life insurance companies out of a total 35 increased during the first six months (January-June) of 2019 compared to the same period of the previous year.

Ten insurance companies registered negative growth in the same period, according to the unaudited disclosures of the companies posted on the website of Dhaka Stock Exchange (DSE).

Currently the bourses have 47 listed insurance companies, including the 35 non-life companies. The rest 12 are life insurance companies.

Most of the life insurance companies have not yet published the half yearly financial reports. They are allowed to make their financial reports public within nine months of quarters ending, which is three months for other listed firms including the non-life insurers.

Stakeholders in insurance sector cite clients’ increasing confidence in insurers, reduction in the operational costs and rising banks’ interest rates against their deposit amount as major reasons for profit surge.

As per the unaudited financial statement, Prime Insurance registered the highest growth by 967% in the first half of the current year and its EPS stood at Tk0.64, which was at Tk0.06 in the same period a year ago.

The Paramount Insurance Company’s consolidated EPS also rose 149% to Tk0.87 for the given period, which was Tk0.35 in the same period last year.

Talking to Dhaka Tribune, Paramount Insurance Co Ltd Managing Director and CEO Bayazid Muztaba Siddiqui said: “Our EPS has increased due to our growing business.”

“Higher interest on bank deposits has helped to raise the EPS of non-life insurers. On the other hand, we have reduced our operating costs under the directives of IDRA (Insurance Development and Regulatory Authority), which has also helped to raise the profitability of companies,” he adds.

The United Insurance's consolidated EPS also jumped 58% to Tk1.33 for January-June 2019 compared to the same period of the previous year.

According to the DSE data, the EPS of City General Insurance, Federal Insurance, Asia Pacific General Insurance, Global Insurance, Standard Insurance, Continental Insurance, Dhaka Insurance, Reliance Insurance, Pioneer Insurance, Pragati Insurance, Eastern Insurance, Islami Insurance, Nitol Insurance, Republic Insurance,   Sonar Bangla Insurance, Provati Insurance, Agrani Insurance, Asia Insurance, Rupali Insurance, Purabi General Insurance, Janata Insurance and Eastland Insurance Co. Limited also rose in the half year compared to the same period last year.

President of Bangladesh Insurance Association (BIA) Sheikh Kabir Hossain has told Dhaka Tribune that insurance policy holders' confidence is increasing in insurance sector which has helped to raise the earnings.

“The rise in earnings of the insurance sector is good news for the stock investors,” he said.

Kabir Hossain also said that general insurance companies would not give over 15% commissions to agents from August 1 to comply with the regulatory instruction.

“We hope the instruction would have positive impact on the entire insurance sector,” Kabir hoped.

The EPS is the company's profit allocated to each share of a listed firm, indicating a company's profitability.

On the other hand, Northern General Insurance Co Ltd has seen the highest fall in EPS by 29% to Tk1.03, which was Tk1.28 in the same period last year. Green Delta Insurance’s consolidated  EPS  stumbled by 22% to Tk1.24, which was Tk1.59 in the last same period.

The EPS of Mercantile Insurance, Peoples Insurance Company, Central Insurance, Bangladesh General Insurance, Bangladesh National Insurance, Phoenix Insurance, Takaful Islami Insurance   and Karnaphuli Insurance Company Limited also fell during the period.

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