General insurers post stronger Q2 earnings on lower costs, improved underwriting
An analysis of Dhaka Stock Exchange (DSE) data shows that 41 of the country’s 43 listed non-life insurers have so far published their unaudited April-June financial statements.
Most listed non-life insurance companies in Bangladesh posted stronger earnings in the April-June quarter of 2026, driven by lower operating costs following the zero-commission policy, improved underwriting, stronger marine insurance business and higher investment income, industry stakeholders said.
An analysis of Dhaka Stock Exchange (DSE) data shows that 41 of the country's 43 listed non-life insurers have so far published their unaudited April-June financial statements.
Of them, 31 reported higher earnings per share (EPS), while 10 posted lower EPS. Two companies have yet to disclose their quarterly results.
The stronger earnings have also lifted investor sentiment, with shares of several insurers rising after the release of their quarterly results.
Keep updated, follow The Business Standard's Google news channel
Islami Commercial Insurance posted the highest profit growth among listed insurers, with quarterly EPS surging 350% to Tk0.63 from Tk0.14 a year earlier. Its January-June EPS rose to Tk0.94 from Tk0.35.
The company said higher net profit after tax drove the earnings growth. However, net operating cash flow per share (NOCFPS) fell to Tk0.12 from Tk0.16 due to lower premium income and higher claim payments. Net asset value (NAV) per share increased to Tk18.31 as of 30 June 2026 from Tk17.36 at the end of December 2025. Its share price gained 1.79% to Tk34.20 on the DSE yesterday.
Express Insurance posted the second-highest growth, with quarterly EPS jumping 279% to Tk0.53 from Tk0.14. Its first-half EPS increased to Tk0.87 from Tk0.43, while NOCFPS improved to Tk0.92 from Tk0.78.
Asia Insurance reported a 200% rise in quarterly EPS to Tk0.33 from Tk0.11. The company attributed the growth to the elimination of agent commission expenses and the absence of additional provisions against investments in listed shares. These factors also lifted first-half NOCFPS to Tk1.36 from Tk0.66.
Other strong performers included Global Insurance, whose EPS rose 184%; Phoenix Insurance, 176%; Paramount Insurance, 145%; Agrani Insurance, 143%; Takaful Islami Insurance, 129%; and City Insurance, 119%.
Among the larger companies, Peoples Insurance reported a 91% increase in EPS, followed by Pioneer Insurance (74%), Provati Insurance (58%), Karnaphuli Insurance and Nitol Insurance (55% each), Eastland Insurance (54%), United Insurance (45%) and Bangladesh National Insurance (42%).
On the other hand, 10 companies posted lower earnings during the quarter.
Sonar Bangla Insurance posted the steepest earnings decline, with consolidated EPS dropping 42% to Tk0.26 from Tk0.45. Despite weaker earnings, consolidated NOCFPS rose to Tk0.69 from Tk0.21, while consolidated NAV per share increased to Tk20.54 from Tk20.02.
Other insurers reporting lower EPS were Republic Insurance (down 14%), Purabi General Insurance, Mercantile Islami Insurance and Northern Islami Insurance (9% each), Dhaka Insurance (8%), Prime Insurance (7%), Crystal Insurance (4%), Bangladesh General Insurance (2%) and Sena Insurance (1%).
Industry stakeholders said recent regulatory reforms have begun strengthening the sector's financial health.
Newly appointed Insurance Development and Regulatory Authority (Idra) Chairman Mir Nadia Nivin has made the settlement of long-pending insurance claims the regulator's top priority.
Idra has already started settling nearly Tk4,000 crore in outstanding claims owed by the country's seven most financially distressed life insurers by liquidating land, government treasury bonds, fixed deposits with financially sound banks and other marketable assets.
The regulator is also working with Bangladesh Bank to recover insurers' deposits trapped in financially troubled banks.
Industry insiders said the zero-commission policy has sharply reduced excessive commission expenses, unnecessary policy sales and the practice of artificially inflating premium income. As a result, operating costs have fallen, while insurers' underlying underwriting performance has become more transparent in their financial statements.
They also said easing geopolitical tensions in the Middle East during the April-June quarter helped revive international trade and shipping, supporting marine insurance business. Meanwhile, the capital market's recovery boosted investment income for many insurers, contributing to stronger profitability.
However, they cautioned that insurers with higher claim settlements continue to face earnings pressure. Sustaining the sector's recovery, they said, will require stronger corporate governance, sound risk management, disciplined underwriting and continued cost control.
