Pioneer Insurance profit up 26% in Q2 as operating cost falls
Its reinsurance commission jumped by 39.52% in this period
Pioneer Insurance Company posted a 26% growth in profit in the second quarter (April to June) of 2021 due to a decline in operating cost and an increase in reinsurance commission.
It made a net profit of Tk17.54 crore in this period, which was Tk13.95 crore during the same period last year.
Besides, its operating cost fell by 37% during this period compared to the same period last year.
Keep updated, follow The Business Standard's Google news channel
An official of the company said they had been able to reduce operating costs during the second quarter, which had caused profits to rise.
The company provides marine, motor, fire, overseas, aviation, industrial, and miscellaneous insurance for its clients.
From April to June 2021, the company's net premium income stood at Tk44.33 crore, which was Tk36.47 crore in the same period of 2020.
Consequently, its reinsurance commission jumped by 39.52% to Tk3.53 crore.
On the other hand, its operating cost stood at Tk11.2 crore, which was Tk17.68 crore in the second quarter of 2020.
Its earnings per share during the second quarter of 2021 was Tk2.51, which was Tk1.99 in the same period of 2020.
Out of the company's total shares, sponsors and directors jointly hold 45.62%, institutional investors 23.45%, and general investors 30.93%.
The last trading price of the company's shares on the Dhaka Stock Exchange was Tk141.6 each on Wednesday.
Most of the general insurance companies posted a higher profit in the second quarter riding on a jump in return from their investments in the capital market.
Currently, there are 78 insurance companies – 32 life and 46 non-life – in Bangladesh. Of them, 51 are listed on the stock exchanges.
Experts have been saying for a long time that Bangladesh is one of the most untapped insurance markets in terms of penetration rate.
They say awareness and a strong culture of insurance service behind economic activities can help the industry thrive.
Insurance penetration in Bangladesh (in GDP percentage) declined to 0.4% in 2020 from 0.49% a year ago, according to a recent sigma report by Swiss Re Institute.
