Photo: Collected
The profits of non-life insurance companies have decreased by 50 per cent in the current fiscal year's second quarter. This decline was observed after reviewing the unaudited reports from April to June 2024. A total of 12 companies in the non-life insurance sector published their financial reports during this period.
Regarding the business decline, insurance officials attribute the decrease in profits to economic downturns affecting insurance portfolios. They mention that reduced economic stability and public confidence have impacted the profitability of insurance accounts.
The companies affected include Reliance Insurance Limited, Islami Insurance Bangladesh Ltd, Karnaphuli Insurance Company Limited, Northern Islami Insurance Ltd, Crystal Insurance Company Limited, Standard Insurance Limited Bangladesh, Rupali Insurance Company Limited, Federal Insurance Company Ltd, PRAGATI Insurance Ltd, Continental Insurance Company Limited, Islami Commercial Insurance Company Limited, and Eastland Insurance Company Ltd.
According to the data, during the period from April 2023 to June 2024, profits increased for six out of the twelve companies compared to the same period last year. Meanwhile, profits decreased for the other six companies.
Companies that saw profit increases include Reliance Insurance Limited saw its earnings per share (EPS) rise to Tk. 2.67 from Tk. 2.01 in the previous year. Similarly, Islami Insurance Bangladesh Ltd reported a profit per share of Tk. 0.73, up from Tk. 0.69. Karnaphuli Insurance Company Limited’s profit per share increased to Tk. 0.48 from Tk. 0.44. Northern Islami Insurance Ltd maintained a stable profit per share of Tk. 0.33, the same as the previous year. Crystal Insurance Company Limited recorded a profit per share of Tk. 0.86, up from Tk. 0.80, marking an 8 percent increase. Standard Insurance Limited Bangladesh achieved a slight increase in profit per share, rising to Tk. 0.68 from Tk. 0.66.
In contrast, the other six companies experienced a decrease in profits. Rupali Insurance Company Limited's profit per share dropped to Tk. 0.39 from Tk. 0.41, in the previous year, resulting in a decrease of Tk 0.02.
Continental Insurance Company Limited's profit per share fell to Tk. 0.45 from Tk. 0.52, a decrease of Tk. 0.07. Eastland Insurance Company Ltd experienced a significant decline in profit per share, dropping to Tk. 0.27 from Tk. 0.41, a decrease of Tk. 0.14. Islami Commercial Insurance Company Limited saw its profit per share decrease to Tk .18 from Tk. 0.27. Federal Insurance Company Ltd's profit per share decreased to Tk. 0.21 from Tk. 0.30. Finally, Pragati Insurance Ltd reported a profit per share of Tk. 1.33, down from Tk. 1.36 in the previous year.
These fluctuations reflect the varied financial performances within the non-life insurance sector in Bangladesh during the second quarter of the fiscal year 2024.
Messenger/Disha
