Prime Insurance fails to pay dividends for first time | The Business Standard
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Monday
May 29, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
MONDAY, MAY 29, 2023
Prime Insurance fails to pay dividends for first time

Stocks

TBS Report
30 March, 2020, 08:45 am
Last modified: 30 March, 2020, 12:03 pm

Related News

  • Prime Insurance Company holds annual branch managers conference 
  • Prime Insurance holds half-yearly Branch Managers’ Conference
  • Prime Insurance launches principal branch 
  • Abdul Hamid made Prime Insurance CEO 
  • Prime Insurance holds annual branch conference

Prime Insurance fails to pay dividends for first time

The company – listed on the Dhaka Stock Exchange (DSE) – has also dropped into the ‘Z’ category for worst-performing enterprises

TBS Report
30 March, 2020, 08:45 am
Last modified: 30 March, 2020, 12:03 pm
Representational image
Representational image

Prime Insurance Company Ltd has failed to pay dividends to its shareholders for the first time since its listing on the share market in 2001.

The company, listed on the Dhaka Stock Exchange (DSE), has also dropped into the "Z" category for worst-performing enterprises.

Prime Insurance Chairman Md Zakiullah Shahid told The Business Standard, last week, "The company decided to withhold dividends last financial year to make an income tax provision – this reduced the retained earnings." 

"Another reason for this is that we must make a provision for unrealised losses against share investments. The company has retained earnings of Tk0.55 crore, which is a very poor amount," he continued.

Zakiullah added that the non-life insurance industry is part of a highly-competitive market due to its limited number of products, and is suffering because of reinsurance adjustments from local reinsurers.

A senior official of the company, on condition of anonymity, said, "The company has an income tax provision deficit of Tk50 lakh, along with an unrealised loss of around Tk5 crore in share investments. "

"We must make a provision against those. The provision must be made with last financial years' net profit and reserve," the official added. 

The company was scheduled to hold its Annual General Meeting on March 30, but it was postponed due to the coronavirus pandemic. 

Prime Insurance's gross premium income increased by 29 percent to Tk71.14 crore during the previous six financial years (2014-2019). 

However, during this period, the company's net premium dropped by 54 percent to Tk13.73 crore – while net profit decreased by 82 percent to Tk1.74 crore. 

In the last financial year, Prime Insurance lost most of its business in the marine insurance sector – witnessing a drop of 29 percent. Its business in the fire and motor insurance sector decreased by 16 percent and 13 percent, respectively, in that period. 

However, business in the miscellaneous insurance sector increased by 83 percent.

The company official further revealed, "Prime Insurance, which once operated under Prime Group, has witnessed some significant management changes along with the change of its ownership. We are trying to move forward by adjusting to the situation."

"Prime Islami Life Insurance Ltd, which also operates under the Prime Group, is not doing very well either," he said.

Discussing the business, the senior official said, "The Insurance Development and Regulatory Authority has set a limit on agent commission and management expenses. Meanwhile, many organisations have not renewed their insurance policies.

"The number of field-level staff dropped after the agent commission decreased. This prevented us from getting new business. Also, the export sector has declined in Bangladesh – negatively impacting the insurance business."

Prime Insurance's share price dropped by 41 percent on the DSE after the company failed to pay dividends to its shareholders. The current closing price of the company's share is Tk17.10. 

Prime Insurance is a second-generation, private, non-life insurance company in Bangladesh established in 1996. 

The company's paid-up capital is Tk40.87 crore. Of the total share, share sponsors and directors own 58.18 percent, institutional investors 11.34 percent and general investors 30.48 percent.

Fareast Islami Life Insurance Ltd owns 9.18 percent shares of Prime Insurance – the largest part of the company – while Fareast Islami Securities owns 6.35 percent.

Top News

Prime Insurance Company Limited

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Govt's borrowing from treasury bills up by Tk65,000cr in FY23
    Govt's borrowing from treasury bills up by Tk65,000cr in FY23
  • Infographic: TBS
    Inside Airbus's mega plan to develop the aviation ecosystem in Bangladesh
  • President Joe Biden delivers the State of the Union address to a joint session of Congress at the Capitol, Tuesday, Feb. 7, 2023, in Washington. Jacquelyn Martin/Pool via REUTERS
    Biden and McCarthy reach a final deal to avoid US default and now must sell it to Congress

MOST VIEWED

  • Photo: Pexels
    Asian shares, US futures rise on debt ceiling deal
  • Oil rises after US leaders strike provisional debt deal
    Oil rises after US leaders strike provisional debt deal
  • Represenattional image. Photo: Collected
    Gold prices slip on US debt limit deal, Fed rate-hike bets
  • Infographic: TBS
    Crisis pushes One Bank to raise capital thru bond
  • Representational Photo: TBS
    Rallying insurance stocks make one-third of DSE turnover
  • Infographic: TBS
    Wise Star Textile goes ahead with Ring Shine takeover 

Related News

  • Prime Insurance Company holds annual branch managers conference 
  • Prime Insurance holds half-yearly Branch Managers’ Conference
  • Prime Insurance launches principal branch 
  • Abdul Hamid made Prime Insurance CEO 
  • Prime Insurance holds annual branch conference

Features

Infographic: TBS

Inside Airbus's mega plan to develop the aviation ecosystem in Bangladesh

2h | Panorama
How women's purchasing power is altering market dynamics

How women's purchasing power is altering market dynamics

1h | Panorama
Media companies are rushing to capture the youngest market of news consumers in the misplaced hope that this will ensure their survival. Photo: Bloomberg

News firms are too obsessed with wooing the young

40m | Panorama
Unwinding poolside, she revels in self-care, her flawless complexion glowing under the gentle sun. Photo: Rony Rezaul. Model: Tangia Zaman Methila

Dive into Summer Style: Get Ready to Sizzle by the Pool

23h | Mode

More Videos from TBS

Turks are voting in presidential run-off

Turks are voting in presidential run-off

18h | TBS World
Temperature will surpass 1.5 degree by 2027

Temperature will surpass 1.5 degree by 2027

1d | TBS World
Dubai’s gigantic moon shaped mega resort

Dubai’s gigantic moon shaped mega resort

1d | TBS World
In an interview given to TBS Lt. Col. Mohammad Tajul Islam Chowdhury

In an interview given to TBS Lt. Col. Mohammad Tajul Islam Chowdhury

3d | TBS Stories

Most Read

1
End of zero tax!
NBR

End of zero tax!

2
Photo: TBS
Energy

Wind power feeds national grid for first time Friday

3
Photo: TBS
Bangladesh

Private helicopter service launched in Ctg

4
Malaysian ship docks at Mongla port with 926 luxurious cars
Bangladesh

Malaysian ship docks at Mongla port with 926 luxurious cars

5
Nagad builds hope on Tk510cr bond, incurs Tk625cr loss
Economy

Nagad builds hope on Tk510cr bond, incurs Tk625cr loss

6
Cenbank prints Tk70,000cr new money in 11 months to support nat'l budget
Budget

Cenbank prints Tk70,000cr new money in 11 months to support nat'l budget

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]