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Pioneer Insurance Company Limited reported a profit of Tk 468 million for 2024, the lowest in five years, due to an increase in expenses and a fall in net premium income amid persistent macroeconomic challenges.
The general insurer's earnings per share (EPS) stood at Tk 4.79 in 2024, down from Tk 4.97 the year before, according to a stock exchange filing on Thursday.
An official of the company, requesting not to be named, said business activities in the country had remained subdued in 2024, owing to macroeconomic challenges, which impacted insurance business as well.
Pioneer Insurance declared a 25 per cent cash dividend for 2024, down from 30 per cent (20 per cent cash and 10 per cent stock) paid for 2023.
Presently, the total number of shares is 97.80 million. So, the insurer will pay more than Tk 244.5 million in cash dividends from a profit of Tk 468 million for the year.
Investors will get Tk 2.5 per share against a profit of Tk 4.79 per share for 2024, meaning the company will retain almost half of the profits earned.
Meanwhile, despite the lower profit, the company's stock rose 0.45 per cent to Tk 44.80 per share on the Dhaka Stock Exchange (DSE) on Thursday.
The net asset value (NAV) per share rose to Tk 44.65 in 2024 from Tk 43.62 the year before.
The net operating cash flow per share (NOCFPS) remained negative. It is Tk 0.91 in the negative in 2024, improved from Tk 2.09 in the negative in the previous year.
The company is yet to disclose 2024 figures of annual net premium, claim settlement, and expenses.
However, its nine months' net premium income dropped 5 per cent year-on-year to Tk 1.14 billion in January-September last year while claimed settlement rose 14 per cent to Tk 272 million during the period.
The insurer's expenses also surged 17 per cent year-on-year to Tk 797 million in the nine months through September last year.
The company has scheduled its annual general meeting (AGM) for May 6 to get shareholders' approval of the proposed dividend. The record date is April 7.
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