Listed on the stock market, Sunlife Insurance Company Ltd has shown signs of recovery immediately after a change in ownership and announced dividends for the first time in two years.
Additionally, the life insurance company has indicated an increase in the Life Fund in the first quarter of 2024.
On Tuesday, Sunlife Insurance reviewed its audited financial report for 2023 and announced dividends on the Dhaka Stock Exchange website. It also published its unaudited financial report for Q1 of 2024.
It has been revealed that Health Minister Zahid Maleque and his family, the owners of the publicly listed life insurer, have sold their entire holding in the company to Green Delta Insurance Company, a listed non-life insurer, and its subsidiaries.
A senior official from Green Delta Insurance Company, speaking on condition of anonymity, told The Business Post, "We have a general insurance company, and from the decision to manage a life insurance company as well, we have acquired the majority shares of Sunlife Insurance."
The official added, "An application has been submitted to IDRA to change the company's name to GD Life Insurance PLC. Meanwhile, the old logo of Sunlife has already been changed."
In its financial results for Q1 of 2024, Sunlife Insurance showcased significant improvements in key metrics. For the period from January to March 2024, it reported a deficit of Tk 5.76 crore, reflecting a marked reduction from the Tk 9.71 crore deficit recorded in Q1 of 2023.
The company's balance of the Life Insurance Fund has also shown a positive trend, standing at Tk 51.54 crore as of March 31, 2024. This is an increase of Tk 4.27 crore compared to Tk 47.27 crore on March 31, 2023, indicating strong growth in the fund over the past year.
Also, the Net Operating Cash Flow Per Share (NOCFPS) for Q1 of 2024 was reported as negative Tk 0.51. This is a notable improvement from the negative Tk 1.70 recorded for Q1 of 2023, demonstrating the company's enhanced cash flow management and operational efficiency.
Dividend for 2023
Meanwhile, Sunlife Insurance Company announced a 0.5 per cent cash dividend for the year that ended on December 31, 2023. This decision, recommended by the Board of Directors, will be presented for approval at the upcoming Annual General Meeting (AGM) scheduled for August 20, 2024.
The AGM will be conducted through a hybrid platform, allowing both physical and virtual participation from shareholders.
The record date for shareholders entitled to receive the dividend has been set for July 23, 2024. Shareholders, whose names appear in the company’s register, will be eligible for the dividend payout by this date.
The improved financial performance is attributed to the company's strategic initiatives aimed at optimising expenses and boosting income through increased premium collections. This financial resilience comes on the heels of Sunlife Insurance's recent declaration of the cash dividend, reflecting its ongoing commitment to shareholder value, said the Green Delta official.
Sunlife Insurance has also reported a notable turnaround in its Net Operating Cash Flow Per Share (NOCFPS), which stands at Tk 1.03 for the year that ended on December 31, 2023.
This is a significant improvement from the negative Tk 9.11 reported for the previous year. The remarkable increase in NOCFPS has been attributed to a substantial rise in gross premium income over the year.
Each Sunlife Insurance share closed at Tk 49 at the Dhaka bourse on Tuesday.
