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Pragati Insurance has reported a record profit of Tk 413 million for the year 2024, the highest since its listing on the stock exchanges in 1996, buoyed by higher premium income despite adverse business climate engendered by inflationary pressure.
According to a disclosure of price-sensitive information released on Thursday, the general insurer's earnings per share (EPS) climbed to Tk 5.61 in 2024, up from Tk 5.01 the previous year.
The insurer's annual profit rose 12 per cent to Tk 413 million for the year from Tk 369 million in 2023.
The profit increased on account of higher premium income, reduction in operating expenses and decline in claim settlements during the year, said an official of the company, declining to be named.
Pragati Insurance's commitment to innovation and operating efficiency helped it stay on a strong growth trajectory, he added.
Although the company reported a record profit, the board of directors has recommended 20 per cent cash dividend and 7.0 per cent stock dividend for 2024, the same dividend paid the previous year.
Despite such robust performance, its stock price fell 4.40 per cent to Tk 52.7 on the Dhaka Stock Exchange on Thursday.
The company will hold its annual general meeting (AGM) for final approval of the dividends along with other matters on June 19. The record date is set on May 19.
The insurer's net operating cash flow per share, a measure of a company's ability to generate cash from its operations, jumped to Tk 3.35 per share, from Tk 0.14 in the previous year.
The net asset value, which refers to the excess of total assets over total liabilities, reached Tk 57.58 per share in 2024, up from Tk 55.11 in 2023.
In Bangladesh, general insurance companies do business mainly in three segments -- fire, transport and marine.
Industry insiders say the persistent macroeconomic challenges and runaway inflation hit the general insurers' business but higher premium and investment income helped their profit growth.
As the bank interest rate increased, the income of insurance companies having cash surplus is growing.
Pragati Insurance is yet to disclose its annual gross premium income for 2024. However, its nine months' gross premium income rose 5.8 per cent year-on-year to Tk 1.86 billion through September 2024 while net premium income rose 3.6 per cent to Tk 981 million.
The company's operating expenses, including claimed settlement, dropped 22 per cent year-on-year to Tk 545 million in nine months through September last year.
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