Green Delta profit rebounds in April-June
Share price surged by 9.8% on Tuesday
Publicly traded Green Delta Insurance, after a significant drop in profits in the first quarter this year, has turned around in the April-June quarter.
The non-life insurer posted a consolidated earnings per share (EPS) of Tk2.14 for the second quarter that ended in June, which was Tk2.06 for the same period last year. Consolidated financial figures include that of all subsidiary companies.
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The company thanks its higher underwriting profits that grew to Tk38.83 crore in this April-June from Tk25.65 crore a year ago for the EPS growth.
Higher profits in its core business helped offset the declines in investment and other income.
However, the first quarter EPS that dropped to Tk0.74 from the previous year's Tk1.78 did not let the company post a growth in half-yearly profit.
In the first six months of the year, EPS declined to Tk2.88 from Tk3.84 in the January-June period of 2022.
Half-yearly EPS decreased due to higher claims accrued, the company said in its public disclosure, adding that payments against higher insurance claims also dragged its net operating cash flow down.
At the end of June, Green Delta's consolidated net asset value per share stood at Tk69.9.
The company also informed its shareholders and regulators that its January 2023 plan to purchase a 2.89 decimal land at Gulshan, Dhaka was cancelled as the seller opted out citing unavoidable circumstances.
Green Delta shares, having a face value of Tk10 apiece, had a sharp 9.8% rise to close at Tk77.4 on Tuesday following the earnings announcement.
