Green Delta Insurance profit drops 12% in 2024

Green Delta Insurance reported a 12% decline in its consolidated profit for 2024, mainly due to lower premium income.

According to the general insurer's price-sensitive statement, its net profit stood at Tk54 crore last year, down from Tk61.21 crore in the previous year. At the end of 2024, its consolidated earnings per share (EPS) was Tk5.39, compared to Tk6.11 in 2023.

The company attributed the profit decline to a decrease in premium income compared to the previous year.

A senior company official explained that a significant portion of general insurers' earnings comes from letter of credit (LC) operations. However, in 2024, LC openings dropped sharply, leading to lower earnings from this segment.

At the end of last year, its consolidated net asset value (NAV) per share stood at Tk70.40, down from Tk73.18 in 2023.

The company said the NAV declined mainly due to a fall in the investment value of the stock market compared to the previous year.

Despite the profit drop, Green Delta has declared a 25% cash dividend for its shareholders for the financial year ending 31 December 2024.

The board of directors recommended the dividend at a meeting held on 11 February, according to a statement filed with the Dhaka bourse.

Following the announcement on the Dhaka Stock Exchange (DSE) website on Wednesday, the company's stock price fell by 0.21%, closing at Tk47.10.

According to the DSE, the insurer has consistently paid a 25% cash dividend for the past three years. Its highest cash payout was 30% in 2021.

To approve the dividend and audited financial statements, the company will hold its annual general meeting (AGM) on 27 March, with a record date set for 4 March.

Shareholding structure

Listed on the stock exchange since 1989, Green Delta Insurance's shareholding structure, according to DSE data, is as follows: Sponsors and directors 30.51%, institutional investors 21.31%, foreign investors 4.60% and general shareholders 43.58%.