General insurance companies perform well in Q2

The most listed general insurance companies put up an impressive performance in the second quarter (Q2) of 2022 thanks to sharp increase in premium income.

Out of 54 listed insurance companies 13 are life insurance companies and 41 are general insurances.

All insurance companies disclosed their second quarter earnings results. Of them, 25 general insurance posted higher earnings per share (EPS) while 16 companies witnessed negative earnings.

Even during Covid-19, insurance companies performed well. During the Covid-19 transition period, people were more inclined towards the insurance sector to avoid risk of their product safety, which increased its income, according to insiders.

Prime Insurance Company Limited was at the top to report the Q2 result posting a 580 percent growth in earnings. Its EPS stood at Tk1.36 for April-June 2022 against Tk0.20 during the same period a year ago.

And the net asset value (NAV) per share was Tk20.73 as of 30 June, 2022 and Tk18.63 as of 31 December 2021.

Aside from that, as there have been no major disasters or fires in the country since the Covid-19 pandemic the expenditure has decreased.

Income from the government bonds and FDR has increased in the general insurance sector, they added.

Mercantile Insurance Company posted a 385 per cent growth in earnings which was the second highest. Its EPS stood at Tk0.34 for April-June 2022 against Tk0.07 for April-June 2021.

“Our business is doing well,” said the Mercantile Insurance Company Secretary Abdur Rahman citing the increase in income. Customers are responding positively to the premium.

During the period, Mercantile Insurance’s net operating cash flow per share increased by 4 percent to Tk0.73 for January-June 2022 against Tk0.70 for January-June 2021.

Global Insurance Company Limited came third and its EPS stood at Tk0.46, up 228 percent from Tk0.14 during the period.

City General Insurance Company limited came top in earnings and its EPS stood at Tk0.65, up 109 percent from Tk0.31 during the period.

“Our premium collection was good during this period, resulting in an increase in earnings per share,” said Hasan Khan, Secretary of City General Insurance.

Furthermore, good returns on bonds and FDR have already been communicated to investors.

City General Insurance NOCFPS increase was 111 percent and NAV increase 100 percent during the period.

Improvement in EPS was also seen in the Q2 of 2022 by Sonar Bangla Insurance, Federal Insurance Company, Crystal Insurance Company, Asia Insurance, Janata Insurance Company, Northern Islami Insurance and Bangladesh National Insurance Company.

Paramount Insurance Company, Agrani Insurance Company, Takaful Islami Insurance, Bangladesh General Insurance Company, Dhaka Insurance, Nitol Insurance Company and Rupali Insurance Company witnessed negative earnings per share during the period.