General insurance profits rise amid signs of stability in marine business and investment income

General insurers in the country posted solid year-on-year profit growth in the July-September 2025 quarter, buoyed by a sharp recovery in marine insurance and stronger income from investments, particularly government securities.

Industry insiders said marine insurance, which accounts for nearly 60% of general insurers' business, continued to regain stability as import and export activities normalised. Higher interest rates on government bonds and treasury bills also boosted investment earnings, helping lift overall profitability across much of the sector.

Experts noted that the industry began showing steady improvement from early this year as trade activities normalised, import and export operations gained momentum, leading to an increase in LC openings. 

The rebound has been particularly visible in marine insurance, which had been badly disrupted by the dollar crisis in recent years.

However, not all companies have recovered equally. Some insurers were affected by political developments, losing major clients and experiencing slower recovery. 

A review of July-September 2025 financial statements from 43 insurers listed on the Dhaka Stock Exchange shows that 27 companies posted year-on-year profit growth in the third quarter, while 16 reported a decline.

Marine insurance provides financial protection against loss or damage to ships, cargo, and other marine assets during sea or river transportation. 

It is generally categorized into two types – Marine Hull Insurance (for vessels) and Marine Cargo Insurance (for goods). This coverage protects against losses from incidents such as shipwrecks, collisions, storms, theft, and other unforeseen events.

United Insurance Managing Director Khawja Manzer Nadeem told The Business Standard that their business saw strong growth in the July-September quarter as the dollar crisis eased.

"During this period, more than 60% of our total business came from marine insurance. Our investment income also increased significantly due to higher interest rates. This time, we received more LCs from the garments, pharmaceuticals, and essential goods sectors," he said.

He added that during the dollar shortage, banks had been opening LCs only for essential items, causing marine insurance business to fall by 35%-40%. 

Nadeem noted that most of the country's marine insurance business depends on imports by the garment and industrial sectors – both of which have been steadily recovering since January. As a result, the overall marine insurance sector has grown by more than 20%, although growth rates vary across companies.

Among individual insurers, Paramount Insurance reported a 214.8% year-on-year jump in earnings per share in Q3 2025, rising to Tk0.85 from Tk0.27. The company attributed the increase mainly to higher interest income and a modest rise in premium collections.

Desh General Insurance recorded a 108.3% year-on-year profit rise, while Peoples Insurance posted 102.5% growth driven by premium collections, rental earnings and investment income.

On the other hand, Agrani Insurance reported a significant loss in Q3 2025 due to lower premium income. Claims expenses increased following several fire incidents during the period, resulting in a loss per share of Tk32 compared to earnings per share of Tk29 in the same quarter last year.

Provati Insurance saw its profit drop by 60.7% year-on-year, Federal Insurance reported a 38.1% decline, and Asia Pacific General Insurance recorded a 31% fall.

Overall, despite pockets of losses and slower recovery for some companies, the general insurance sector shows signs of stabilisation. 
Experts say that continued recovery in trade, coupled with strong marine insurance performance and steady investment returns, could drive further growth in the coming quarters.