General insurance shows mixed results in Q2 as marine insurance recovers

Infographics: TBS

The general insurance sector posted a mixed performance in the April-June quarter of 2025 as marine insurance began a gradual recovery. 

In 2024, the general insurance sector faced major challenges due to a severe dollar crisis, which disrupted import-export activities and significantly reduced business opportunities. As a result, the opening of Letters of Credit (LCs) dropped sharply, leading to nearly a 50% decline in the marine insurance business.

Industry insiders say the situation started improving slightly from the first quarter of this year. With the revival of trade, the number of LCs issued has risen, directly boosting the general insurance sector. Since marine insurance is heavily dependent on trade activities, the resumption of imports and exports has revitalised this segment for insurance companies.

They also note that political developments have affected business operations for some companies, with several losing major clients and seeing slower recoveries. While the marine insurance segment is showing signs of stabilisation, many insurers have yet to fully recover. Still, there is optimism that business performance will improve further if overall conditions continue to stabilise.

According to industry insiders, nearly 60% of general insurance companies' business comes from marine insurance. The dollar crisis in recent years has severely impacted this segment. A review of financial statements from 43 insurance companies listed on the Dhaka Stock Exchange (DSE) for the April-June 2025 quarter shows that 20 companies posted profit growth compared to the same period a year earlier, 22 companies saw profit declines, while one has yet to publish the report.

Marine insurance provides financial protection against losses or damages to ships, cargo, and other marine assets during transportation by sea or river. It is typically divided into two categories – 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.

Khawja Manzer Nadeem, managing director of United Insurance, told TBS that the company achieved strong growth in the April-June quarter as the dollar crisis eased. "We generated over 60% of our business from marine insurance during this period. We expect this segment to expand further now that the tariff issue has been resolved."

Earlier, due to the dollar shortage, banks issued LCs only for essential goods, causing the marine insurance business to decline by 35%-40%. Nadeem noted that much of the country's marine insurance business depends on imports by garment and industrial enterprises – a sector that has been recovering steadily since January. As a result, the overall marine insurance sector has grown by more than 20%, although growth rates vary among companies. He expressed optimism that this upward trend would continue in the coming months.

In the June quarter of 2025, Agrani Insurance reported earnings per share (EPS) of Tk0.15, compared to a loss per share of Tk0.02 in the same period last year.

Meghna Insurance recorded a 500% year-on-year profit surge in Q2 2025, driven mainly by higher premium income. Its EPS stood at Tk0.30 in the quarter, up from Tk0.05 a year earlier. On Thursday, the company's share price closed at Tk26.40 on the DSE.

Reliance Insurance posted a 17% year-on-year profit growth, supported by higher premium income and investment returns. The company's net operating cash flow also rose during the quarter due to increased premium collections, while reinsurance payments are expected to be settled in the next quarter. Net asset value grew as a result of higher retained earnings.

Besides, Sonar Bangla Insurance achieved 165% profit growth, Phoenix Insurance 93.33%, United Insurance 66%, Peoples Insurance 48%, and Sena Kalyan Insurance 38% compared to the same period of the previous year.

In contrast, Asia Insurance posted a 78% year-on-year profit decline. The company said its EPS dropped mainly due to a Tk15.56 crore fall in premium income compared to last year.

Green Delta Insurance also reported a year-on-year profit drop of 13% in Q2 2025. The company made a profit of Tk30.11 crore, compared to Tk32.72 crore in the same period last year. Its management expenses, including claims and commissions, rose by 40% to Tk40.03 crore from Tk28.67 crore a year earlier. Meanwhile, its brokerage commission and other income fell by 59% to Tk1.53 crore from Tk3.70 crore in the same period last year. Its share price closed at Tk48.50 on the DSE today. 

Besides, Paramount Insurance experienced a 42% profit decline, Sikder Insurance 36%, Express Insurance 30%, Continental Insurance 28%, Rupali Insurance 23%, and Islami Commercial Insurance 22% compared to the same period of the previous year.