National Insurance financials in Q2
- 1. Net profit jumped 38%
- 2. Marine insurance rose 30%
- 3. Fire insurance went up 100%
- 4. Business was sluggish in Q2 of last year
- 5. Underwriting profit was Tk5.30 crore
Bangladesh National Insurance Company Limited, the country's first general insurance firm in the private sector, posted a 438% growth in profit in the second quarter of 2021 compared to the corresponding period of last year.
It has reported a net profit of Tk4.57 crore in the April-June period.
The principal objectives of the company are to carry out all kinds of insurance, guarantee and indemnity business other than life insurance business.
The profit soared riding on the premium income and the decrease in payment of claims and management expenses, said an official at the company.
The insurer revealed this price-sensitive information after it had a board meeting on Tuesday.
He said the company could not do business in the second quarter of last year due to a countrywide lockdown put in place to curb the spread of the Covid-19 pandemic.
But this year, the company has made good business, with marine insurance and fire insurance business jumping by 30% and 100%, respectively, in this period, which contributed to the profit, the official added.
In the April-June quarter, the net premium income of the company Jumped by 124.02% to Tk12.03 crore.
Consequently, its underwriting profit was Tk5.30 crore, which was Tk59 lakh negative in the same period of last year.
Its earnings per share was Tk1.03, which was Tk0.19 in the same period of 2020.
On the other hand, the company posted a profit of Tk9.03 crore in the first half of 2021.
Sponsor and directors jointly held 59.54%, institutional investors 16%, foreign investors 0.02%, and general investors 24.44% shares of the insurance company.
The last trading price of the company's shares at the Dhaka Stock Exchange was Tk121.10 each on Wednesday.
Most of the general insurance companies posted a higher profit in the second quarter riding on a jump in return from their investments in the capital market.
Currently, there are 78 insurance companies – 32 life and 46 non-life – in the insurance sector of Bangladesh. Of them, 51 companies are listed on the stock exchanges.
Experts have been saying for a long time that Bangladesh is one of the most untapped insurance markets in terms of penetration rate.
Awareness and a strong culture of insurance service behind economic activities can help the industry thrive.
Insurance penetration in Bangladesh in GDP percentage declined to 0.40% in 2020, from 0.49% a year ago, according to a recent sigma report by Swiss Re Institute.