Popular Life Insurance Company, a third-generation life insurer in the country, reported a 41 per cent decline in insurance claims in the first six month of 2023 on a year-on-year basis, which helped it register growth in life fund.
The life insurer paid Tk 242 crore in insurance claims from January to June this year against Tk 409 crore in the corresponding period last year, as per a recent disclosure posted with the Dhaka Stock Exchange (DSE).
The listed company in January-June 2021 had paid Tk 275 crore in insurance claims.
The insurer, however, did not give any details about why it its claim payment went down in the first half of the current year.
The company’s premium income in the first six months of 2023 stood at Tk 397 crore, compared to Tk 387 crore in the same period the year before.
Meanwhile, its income from other sectors totaled at Tk 2.64 crore in H1 of 2023, up 232 per cent than the figure of Tk 79 lakh reported in the same half one year ago.
As per its consolidated life revenue account for January-June 2023, the excess of total expenses including claims over total income was Tk 108 crore against total income (deficit) of Tk 236 crore in the corresponding period of 2022.
The life insurer’s balance of life insurance fund was Tk 1,586 crore as on June 30 this year which was Tk 1,560 crore till June 30 last year, resulting in a net increase of over Tk 26 crore, as per the company’s first half-yearly financial statement.
In April to June period of 2023, the company’s total expenses including claims over total income was Tk 99 crore against of Tk 137 crore in the corresponding period the year before.
The life insurer recommended a 38 per cent cash dividend for its shareholders for the year ended in December 2022. The company had paid a 40 per cent cash dividend for 2021.
The insurer will hold an annual general meeting (AGM) on September 26, while the record date has been fixed at September 4 to identify eligible shareholders for dividends.
As per the DSE data, the insurer’s earnings per share (EPS) was Tk 3.8 for the year 2022, which was the same for 2021 as well.
Popular Life Insurance Company started its journey in 2000 with a paid-up capital of Tk 3 crore and an authorised capital of Tk 25 crore.
Later the authorised and paid-up capital had been increased to Tk 500 crore and Tk 60.42 crore, respectively, in 2023.
The company got listed on the Dhaka and Chittagong Stock Exchanges in 2005.
Sponsors and directors jointly owned a 23.70 per cent stake in the company, while institutional investors held 13.31 per cent, and the general public 62.99 per cent as on July 31 this year.
The company’s shares price rose by 3.50 per cent to Tk 71.0 each on the DSE on Thursday.
