Reliance Insurance profit dips 7.7pc in 2025, hit by Dhaka airport cargo village fire
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Reliance Insurance reported a 7.68 per cent year-on-year decline in profit to Tk 885.46 million in 2025, primarily due to higher claim settlements in the fourth quarter.
Its earnings per share (EPS) stood at Tk 8.42 as of December 2025, down from Tk 9.12 a year ago.
The annual financial results came as a surprise to investors, as the company had secured a 16 per cent increase in profit to Tk 719.33 million in the first nine months (January-September) of 2025 compared to the same period of the previous year.
"We had to settle a substantial amount of claims arising from the cargo village fire incident [at Dhaka airport] in the fourth quarter," said company secretary Mohammad Mamunur Rashid.
A devastating fire had broken out at the cargo section of Hazrat Shahjalal International Airport in October last year. Later, trade bodies estimated that the blaze caused losses exceeding $1.0 billion (around Tk 120 billion) to Bangladesh's export sector.
Bangladesh economic report
Rashid added, "In addition to the large claim payments, we charged depreciation for our new building for the first time, which also reduced our profit."
Established in 1988, Reliance Insurance is one of the leading first-generation private non-life insurers in Bangladesh, offering fire, marine, and engineering insurance products. The company claims a 98 per cent settlement ratio.
Following the earnings disclosure, the company's share price declined 3.11 per cent to Tk 71.60 each on Sunday on the Dhaka Stock Exchange.
Despite the profit decline, the insurer declared a 30 per cent cash dividend for general shareholders for 2025.
The company also reported improved fundamentals. Net asset value (NAV) per share rose to Tk 75.43 in 2025, from Tk 69.59 a year earlier, driven by higher retained earnings and asset revaluation.
Net operating cash flow per share (NOCFPS) increased significantly to Tk 6.84 in 2025 from Tk 1.66 in 2024, supported by higher premium income, according to the company.
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