Underwriting income drives up Takaful Insurance’s profit
In the January-June period of this year, the company made a profit of Tk4.73 crore, which was Tk2.81 crore in the corresponding period of last year
H1 2021 financials of Takaful Insurance
- 1. Returns on capital market investment Tk1.07cr
- 2. Underwriting profit Tk4.76cr
- 3. Net profit Tk4.73cr
- 4. EPS Tk1.11
- 5. Last trading price Tk54.60
Takaful Islami Insurance Limited's profit went up by 68% year-on-year in the first half of 2021, thanks to a jump in underwriting profit and returns on capital market investment.
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In the January-June period of this year, the company made a profit of Tk4.73 crore, which was Tk2.81 crore in the corresponding period of last year.
During the period, its earnings per share (EPS) stood at Tk1.11, up from Tk0.66 in the first half of 2020.
The principal objective of the company is to carry out all kinds of insurance, guarantee, indemnity business other than life insurance business.
Company officials said the profit of the company has increased for two reasons. First, its underwriting profit stood at Tk4.76 crore from Tk1.38 crore due to closed agent commission. Secondly, its income from capital market investment stood at Tk1.07 crore in the first half of this year, which was Tk39 lakh in the same period a year ago.
In the April-June quarter of 2021, the company's EPS was Tk0.56, which was Tk0.29 in the same period of 2020.
The company started its commercial operation in 2001 and was listed on the stock exchanges in 2008.
Sponsors and directors jointly hold 50.87% shares of the company, while institutes, foreign investors, and general investors hold 18%, 0.08% and 31.05% shares, respectively.
The last trading price of each share of the company on the DSE was Tk54.60 on Monday.
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 Bangladesh. Of them, 51 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.
