Desh General Insurance posts 7% profit growth in April-June

Desh General Insurance Company posted a 7% profit growth in the April-June quarter of this year compared to the same period of last year.

In the second quarter, the company's net profit stood at Tk1.24 crore, which was Tk1.16 crore in the corresponding period of 2021.

Its earnings per share (EPS) stood at Tk0.31 in April-June, which was 7% higher than the previous year. The net asset value of the company was Tk12.15 as of 30 June, 2022.  

From the January to June period, its net profit stood at Tk3.32 crore and EPS at Tk0.83.

The insurer got listed on the capital market in March last year. The company raised Tk16 crore capital from the stock market by issuing shares at Tk10 each with an initial public offering (IPO) for business expansion.

Former Industries Minister Amir Hossain Amu and Bengal Group of Industries Chairman M Morshed Alam are the founders and major shareholders of the company.

According to the company's IPO prospectus, it borrowed Tk8.44 crore from different banks and three companies of Bengal Group for claim settlement till 31 December 2019. Until that period, it had Tk22 crore in FDRs.

The prospectus said the National Board of Revenue (NBR) claimed Tk6 crore in taxes from the company for the fiscal year 2005-2006 to 2015-2016, while the claim settlement remains pending with the tax appellate tribunal.

There are 78 companies in the insurance sector of Bangladesh. Of them, 32 are life insurance and 46 are non-life. Fifty-four companies are listed on the stock exchanges.

As of 30 June 2022, sponsors and directors jointly held 60%, institutions 4.97%, and the general public 35.03% shares of the company.

The last trading share price of the company on the Dhaka Stock Exchange was Tk30.30 per share on Tuesday.