Most of the listed general insurance companies displayed an unimpressive performance in the third quarter (Q3) of 2023 due to a blunt decrease in premium income.
Out of 57 listed insurance companies, 15 are life insurance and 42 are general insurance companies.
Among the 42 general insurance companies listed in the capital market, the profits of 25 companies have decreased, compared year-on-year. The profits of 12 companies have increased, and 2 firms returned to profitability from negative conditions.
Among the listed general insurance companies, the profits of the three companies remained unchanged compared to the previous year.
The profits may have decreased due to a rise in costs in the reinsurance sector. Apart from this, profit may be negatively affected due to decrease in premium income, an increase in insurance claim payouts, according to industry insiders.
A perusal of the report shows that the net profit after tax of 42 general insurance companies stood at Tk 136 crore, compared to Tk 143 crore in the same period last year. Net profit fell by around Tk 7.13 crore or 4.98 per cent.
The 42 listed companies earned a net profit of Tk 3.59 crore during the third quarter of 2023 (July-September), compared to Tk 2.53 crore in the same period previous year.
Pragati Insurance Ltd was at the top in terms of unimpressive performance, posting a 78 per cent drop in Net profit. Its EPS stood at Tk 0.36 for July-September 2023 against Tk 1.67 during the same period a year ago.
And the net asset value (NAV) per share was Tk 56.69 until 30 September, 2023 and Tk 59.01 until 31 December 2022.
Pragati Insurance Syed Anisul Hoque said the company has paid more claims in this quarter compared to the same period of previous year. As a result, income has decreased.
Also, premium income has decreased compared to the same period of the previous year due to various political issues.
Islami Commercial Insurance Company Ltd posted the second lowest profit in the third quarter of 2023. The company made a net profit of TK 91 lakh during the period, compared to a profit of Tk 2.93 crore in the same period previous year.
Its EPS stood at Tk 0.18 for July-September 2023 against Tk 0.58 for July-September 2022.
During the period, Islami Commercial Insurance Company net operating cash flow per share decreased by 66 per cent to Tk 0.54 during January-September of 2023, against Tk 1.63 posted in January-September of 2022.
Eastland Insurance Company Ltd came third and its EPS stood at Tk 0.13, down 56.66 per cent from Tk 0.30 during the same period.
Eastland Insurance Company, Rupali Insurance Company, Meghna Insurance Company, Paramount Insurance Company, Mercantile Islami Insurance, Mercantile Islami Insurance, Purabi General Insurance Company, Eastern Insurance Company witnessed negative earnings per share during the period.
Prime Insurance Company Ltd came top in earnings and its EPS stood at Tk 0.88, up 41.93 per cent from Tk 0.62 during the period.
“Our business has been good this quarter. In particular, our income from the premium income and reinsurance segment has increased compared to the same period of the previous year, according to Prime Insurance Company Secretary Mahamudhul Hasan.
Improvement in EPS was also seen in the Q3 of 2023 by Union Insurance Company Limited, Reliance Insurance, Phoenix Insurance Company, City General Insurance, Green Delta Insurance, Sena Kalyan Insurance Company, Dhaka Insurance, Bangladesh National Insurance Company, Desh General Insurance Company, Standard Insurance, and Republic Insurance Company.
Provati Insurance Company and United Insurance Company are among the three companies to return to profit in the third quarter of 2023 after 2022 losses.
Nitol Insurance Company, Peoples Insurance Company, and Sonar Bangla Insurance maintained the same profit level in Q3 2023 as the previous year.
source: businesspostbd.com
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