Union Insurance's net profit jumps 59pc in Jan-Sept

Union Insurance's net profit jumps 59pc in Jan-Sept

Union Insurance Company, which will make its debut on Sunday, posted a 59 per cent growth in profit for January-September, 2021 compared to the same period a year earlier.

The newly listed Union Insurance will make its trading debut on Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) on Sunday (January 16), under the settlement category "N".

The general insurer has reported (un-audited) profit after tax of Tk 42.99 million for January-September 2021, as against profit after tax of Tk 27.01 million for the same period last year, the company said in a filing with the DSE on Thursday.

The company has also reported basic earnings per share (EPS) of Tk 1.48 for January-September 2021, as against basic EPS of Tk 0.93 for the same period of the previous year.

However, post-IPO EPS would be Tk 0.89 for January-September 2021 period ended on 30 September 2021, according to the filing.

The pre-IPO net asset value (NAV) per share with revaluation would be Tk 18.87 as on 30 September 2021 and the same would be Tk 15.32, considering post-IPO paid up shares.

The Bangladesh Securities and Exchange Commission (BSEC) approved the general insurer's IPO proposal on June 23, 2021 to raise Tk 193.60 million by issuing over 19.36 million ordinary shares at an offer price of Tk 10 per share.

Union Insurance, whose IPO subscription took place between December 15 and December 22, 2021, will be the 53rd listed insurer on the Dhaka bourse.

The IPO proceeds will be invested in fixed deposit receipts (FDR), stock market investment, purchase of a floor space and IPO related expenses.

The company's authorised capital is Tk 1.0 billion and post-IPO paid-up capital would be Tk 484 million.

Sonar Bangla Capital Management Ltd is acting as the issue manager for the company's IPO process.

Getting licensed under Insurance Act, 1938, Union Insurance is running all types of general insurance business other than life insurance business.

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