Republic Insurance Company experienced an 11.35% increase in premium income during the second quarter (April to June) of 2024 compared to the same period in 2023.
Specifically, its premium income rose to Tk13.74 crore in 2024, up from Tk12.34 crore in the previous year.
However, the company’s profitability was impacted by a sharp rise in claims payments.
During the second quarter of 2024, Republic Insurance paid Tk2.41 crore in claims, a substantial increase from the Tk55 lakh in the same period the previous year. These higher claims payments largely offset the company’s net profit.
Republic Insurance Company reported a slight decline in net profit for the second quarter of 2024. The net profit stood at Tk3.29 crore, which is 2.08% lower than the Tk3.36 crore reported in the same period of the previous year.
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The company managed to reduce its agents’ commission by around 15% during this quarter, bringing it down to Tk2.73 crore from Tk3.22 crore in 2023.
For the January to June 2024 period, Republic Insurance’s gross premium income was Tk48.58 crore, a decrease from Tk51.89 crore in the same period the previous year.
During the first six months of 2024, the company’s earnings per share (EPS) were Tk1.19, down from Tk1.23 in the previous year. By the end of June 2024, the net asset value (NAV) per share stood at Tk18.41.
On Sunday, the company’s share price closed at Tk31.90 on the Dhaka Stock Exchange, which represents a 26% decline from Tk43.10 on 9 July this year.
Republic Insurance Company operates in all areas of insurance, guarantee, and indemnity business, except for life insurance, and has been listed on the stock exchanges since 2009.
The company recommended an 11% cash dividend for their shareholders for 2023.
Out of the company’s total shares, sponsors and directors jointly hold 40.48%, institutional investors 21.09%, and general investors 38.43%.
Currently, there are 81 insurance companies – 36 life and 45 non-life – in the insurance sector of Bangladesh. Of them, 58 are listed on the stock exchanges.
Experts have been saying for a long time that Bangladesh is one of the most untapped insurance markets in terms of penetration rate.
Awareness and a strong culture of insurance service behind economic activities can help the industry thrive.