Bangladesh General Insurance Company (BGIC), the country's first general insurance firm in the private sector, posted a 72% growth in profit in the first half of 2021 compared to the corresponding period of the last year.
The profit soared riding on the investment in stocks and premium income, company officials said.
The insurer revealed this price-sensitive information after it had a board meeting on Thursday.
During the period, BGIC's income from stock investments rose 15-20%, premium income surged 10%, and its insurance claims declined – the factors that impacted its net profit, the officials said.
In the Covid-19 pandemic, the listed non-life insurance companies witnessed higher profits in the April-June quarter of 2021 riding on a jump in returns from their investments in the capital market.
In the January-June quarter, BGIC's earnings per share (EPS) rose to Tk1.58, up 72% from Tk0.92 in the same period of the last year.
In the second quarter alone, its EPS rose 71% to Tk0.89 compared to Tk0.52 in the same time of 2020.
BGIC Company Secretary Saifuddin Ahmed told The Business Standard, "A handsome profit from stock investments and premium income has fuelled the overall income of the company."
"Owing to increasing investment and premium income, our net profit surged sharply during the first half of the year. During the pandemic time, our insurance claims fell, another reason that helped us gain this profit rise," he added.
BGIC, which commenced operation in 1985, got listed with the Dhaka Stock Exchange in 1989 and Chittagong Stock Exchange in 1996.
The company offers multiple general insurance products such as fire insurance, marine insurance – hull and cargo – motor insurance and miscellaneous insurance.
In 2020, the company registered a profit of Tk6.77 crore with EPS at Tk1.25 and recommended a 12% cash dividend for its shareholders.
Out of the company's total shares, sponsor and directors jointly held 33.98%, institutional investors 37.58%, and general investors 28.44%.
The last trading price of the company's shares at the Dhaka Stock Exchange was Tk51.60 each.