Karnaphuli Insurance Company, which serves as a corporate director for Meghna Life Insurance Co Ltd, has announced its intention to purchase 2,00,000 more shares of Meghna Life Insurance within the next 30 working days.
The announcement was made public on the Dhaka Stock Exchange (DSE) website on Sunday.
The planned acquisition is to be conducted at the prevailing market price through public trading on the DSE. This strategic move by Karnaphuli Insurance underscores its ongoing commitment and confidence in the performance and future prospects of Meghna Life Insurance.
This is not the first time Karnaphuli Insurance has demonstrated a significant interest in Meghna Life Insurance. Earlier, on June 5, Karnaphuli Insurance had announced a similar purchase of 2,00,000 shares. The transaction was swiftly completed by June 9, as per data on the DSE website.
The recurrent share acquisitions by Karnaphuli Insurance highlight its robust support and optimistic outlook towards Meghna Life Insurance.
Market analysts suggest that such moves can potentially enhance investor confidence and positively influence the market performance of Meghna Life Insurance’s shares.
Karnaphuli’s Q1 of 2024
Karnaphuli Insurance has reported a marginal increase in its Earnings Per Share (EPS) for the first quarter of 2024.
The company's EPS for the January-March 2024 period was Tk 0.64, compared to Tk 0.63 in the same period of the previous year, reflecting a slight improvement in profitability.
However, the company's Net Operating Cash Flow Per Share (NOCFPS) showed a significant decline, falling to Tk 0.53 for Q1 of 2024 from Tk 0.92 in the corresponding quarter of 2023.
Despite the decline in cash flow, Karnaphuli Insurance's Net Asset Value (NAV) per share saw a healthy increase. As of March 31, 2024, the NAV per share stood at Tk 22.24, up from Tk 21.34 on March 31, 2023.
Meghna Life’s Q1 of 2024
Meanwhile, Meghna Life Insurance recently disclosed its financial performance for Q1 of 2024, revealing a notable yet improved deficit compared to the same period of the previous year.
The company reported a deficit for the quarter ending on March 31, with total expenses, including insurance claims, surpassing the total income by Tk 97.49 crore. This is a slight improvement from the deficit of Tk 98.43 crore recorded in Q1 of 2023.
Despite the deficit reduction, the company's Balance of Life Insurance Fund experienced a decline. As of March 31, the fund stood at Tk 1,577.60 crore, down from Tk 1,693.51 crore recorded on March 31, 2023 — marking a net decrease of Tk 115.91 crore.
Moreover, Meghna Life Insurance reported a negative Net Operating Cash Flow Per Share (NOCFPS) of Tk 8.79 for Q1 of 2024. This metric underscores the company's challenges in generating cash from its operating activities during the quarter.
