Subsidiaries, higher claim expenses drag Green Delta profit down
Green Delta Insurance Company has posted earnings per share (EPS) of Tk7.3 for 2022, which was Tk8.43 in the previous year, according to the Dhaka Stock Exchange (DSE).
The company has blamed it on the decrease in profits of its subsidiary companies, and higher expenses against insurance claims.
According to analysts, the capital market had been in a bearish trend over the last year, and Green Delta has brokerage and merchant banking subsidiaries – Green Delta Securities and Green Delta Capital, respectively – which might have earned less in 2022.
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Besides, training firm Professional Advancement Bangladesh Ltd and insurance backward linkage services firm GD Assist Ltd are on the list of its subsidiaries.
The DSEX, the broad-based index of the Dhaka bourse, was 8.1% down in 2022, while declined market turnover hurt brokerage industry revenue, especially in the second half of the year due to floor price restrictions.
The board of directors of the largest private sector non-life insurer recommended 25% or Tk2.5 in cash dividends for 2022, against each share having a face value of Tk10.
In 2021, its shareholders received 30% cash dividends.
At the end of December, the company's net asset value per share stood at Tk68.96, while its shares closed 1.69% higher at Tk66.2 on Wednesday in the DSE.
Green Delta Insurance was listed in 1989 and its paid-up capital grew to over Tk100 crore.
Sponsors and directors hold 30.51%, institutional investors 21.73%, foreigners 4.6% and the general public 43.16% of the company's shares, according to the DSE.
