Republic Insurance profit up 70% riding on underwriting profit rise

Republic Insurance Company posted a 70% growth in profit in the second quarter (April to June) of 2021 as it stopped giving agent commission and saw an increase in underwriting profit.

Its underwriting profit increased by 117% during this period.

Besides, it earned a net profit of Tk2.94 crore, which was Tk1.7 crore during the same period last year.

From April to June 2021, its net premium income stood at Tk7.34 crore, which was Tk8.53 crore in the second quarter of 2020.

At the same time, its earnings per share was Tk0.63, which was Tk0.37 in the same period of 2020.

In the half-yearly financial statement of 2021, its net profit was Tk5.73 crore, which was Tk4.22 crore in the same period of 2020.

Out of the company's total shares, sponsors and directors jointly hold 31.67%, institutional investors 15.56%, and general investors 52.77%.

The last trading price of the company's shares on the Dhaka Stock Exchange was Tk60.8 each on Sunday.

Most of the general insurance companies posted a higher profit in the second quarter, riding on a jump in return on capital market investments.

Currently, there are 78 insurance companies – 32 life and 46 non-life – in the insurance sector of Bangladesh.

Of them, 51 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.

Insurance penetration in Bangladesh in terms of GDP percentage declined to 0.4% in 2020 from 0.49% a year ago, according to a recent sigma report by the Swiss Re Institute.