United Insurance leads the DSE losers’ table as earnings drop
The company blames increase in claims, reinsurance premium, management expenses, and a decline in interest income for its EPS drop
The price of United Insurance shares dropped 5.2% to Tk52.9 each on the Dhaka Stock Exchange (DSE) on Sunday, way beyond the recently imposed bottom circuit breaker that does not allow a stock to fall by more than 2% a day.
The non-life insurer was beyond the price limit on Sunday following its corporate disclosure.
Its earnings per share (EPS) for 2021 dropped to Tk1.65 from Tk2.04 in 2020 and the company blamed higher claims, higher reinsurance premium, more management expenses, and a decline in interest income.
Keep updated, follow The Business Standard's Google news channel
Also, the company blamed lower collection of premiums in its underwriting business for its net operating cash flow decrease.
However, an increase in the value of its share investments helped its net asset value per share increase to Tk36.45 at the end of 2021.
United Insurance, a concern of Duncan Brothers (Bangladesh) Ltd which is an associate of the British multinational company Camellia Plc UK, was listed on the DSE in 1990.
Sponsors and directors hold 48.6% of the company's shares, while institutions hold over 28% and the general public own over 22%.
