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Sonar Bangla Insurance has reported a profit of Tk 8.4 million for 2024, the lowest since its listing in the stock market, thanks to a sharp fall in premium income after the political changeover in August last year.
The company's profit was Tk 16.7 million the year before, marking a 50 per cent decline year-on-year in 2024.
As a result, the consolidated earnings per share (EPS) plunged to Tk 0.20 in 2024 from Tk 0.40 in the previous year, according to a stock exchange filing on Wednesday.
The insurer has been showing a persistent fall in income for the past few years as most other insurance companies amid macroeconomic challenges and runaway inflation.
Despite the shrinking income, the general insurer has recommended a 10 per cent cash dividend for 2024, as it paid for the year before.
A company official, requesting not to be named, said the overall business activities in the country remained subdued last year, owing to lingering macroeconomic uncertainties, while political changeover also affected the company's business performance.
Increased expenditure for claim settlement and capital market downturn also squeezed profitability, he said.
Sheikh Kabir Hossain, uncle of ousted prime minister Sheikh Hasina, is the chairman of Sonar Bangla Insurance.
Mr Hossain had been the president of the Bangladesh Insurance Association (BIA), an association of insurance company owners, from 2011 until the fall of the Hasina-led government.
He recently fled the country, according to media reports.
Meanwhile, the company decided to hold a general meeting on September 11. The record date is July 21.
The net operating cash flow per share, a measure of a company's ability to generate cash from its operations, stood at Tk 1.17 for 2024, recovered from Tk 0.35 in the negative in the previous year.
The net asset value, which refers to the excess of total assets over total liabilities, dropped to Tk 20.24 per share in 2024 from Tk 20.62 a year ago due to lower profits.
The insurer is yet to disclose details of audited financial statements for 2024, such as gross premium income and investment income.
Listed in 2006, the general insurer's profit also slumped 24 per cent year-on-year to Tk 18.5 million in January-March this year.
Despite the lower profit, the company's stock surged 4.4 per cent to Tk 21.4 per share on Wednesday on the Dhaka Stock Exchange.
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