Central Insurance Q3 EPS jumps 46%

General insurer Central Insurance Company's earnings per share (EPS) rose 46% year-on-year to Tk0.76 in July-September 2026, up from Tk0.52 in the same period a year earlier.

The insurer's EPS for January-September 2026 also increased to Tk1.79 from Tk1.45 in the corresponding period of 2025, according to a disclosure filed with the Dhaka Stock Exchange (DSE) today (8 October).

Following the disclosure, the company's share price rose 2.87% to close at Tk43 on the DSE.

Central Insurance's net operating cash flow per share (NOCFPS) jumped to Tk3.37 in the first nine months of 2026 from Tk0.93 in the same period last year. Its net asset value (NAV) per share stood at Tk51.43 on 30 September 2026, up from Tk50.69 on 31 December 2025.

For the year ended on 31 December 2025, the insurer paid a 12% cash dividend to shareholders. It reported EPS of Tk1.87, NAV per share of Tk50.69 and NOCFPS of Tk1.64 for the year, compared with Tk1.85, Tk50.17 and Tk1.50, respectively, in 2024.

Despite the improvement in earnings and cash generation, the company's latest performance comes against a backdrop of unresolved issues raised by its external auditor in the audit report for 2025.

The auditor found a discrepancy between premium collection and VAT returns. Premium collection stood at Tk60.06 crore, while VAT returns showed Tk54.10 crore, resulting in an unexplained difference of around Tk5.96 crore.

The auditor said the company had not provided satisfactory reconciliation for the difference and, consequently, it could not determine whether premium income and related balances were free from material misstatement.

The audit report also raised concerns over unreconciled and unconfirmed balances involving other insurance companies. Amount due from other persons or bodies carrying on insurance business stood at Tk32.59 crore, while the amount due to such entities was Tk10.80 crore. The auditor said these balances remained unreconciled and unconfirmed by third parties, limiting its ability to verify their completeness, existence and accuracy.

The auditor further pointed out that Central Insurance has a subsidiary, Central Insurance Investment Limited, but did not prepare consolidated financial statements.

Another issue flagged in the audit report concerns the company's investment in Central Insurance Investment Limited. The insurer recorded an investment of Tk10 crore in the subsidiary without relevant approval from the Insurance Development and Regulatory Authority (IDRA), according to the auditor.