FE REPORT |
Printed:
February 14, 2023 08:59:34
Reliance Insurance coverage, one of many main basic insurers in Bangladesh, posted a document revenue in 2022, regardless of it being a difficult 12 months, backed by increased gross premium revenue.
The insurer’s revenue grew at 4.79 per cent year-on-year for 2022 to Tk 616 million, the very best since its itemizing within the inventory market in 1995.
The expansion was achieved at a time when financial indicators had been all in decline, stated Badal Chandra Rajbangshi, chief monetary officer (CFO) of Reliance Insurance coverage.
The insurance coverage firm additionally secured greater than 10 per cent progress in gross premium, he stated however didn’t disclose the precise determine.
Its dividend yield was 4.28 per cent for 2022.
Reliance supplies insurance coverage protection for fireplace, marine cargo, marine hull, engineering, private accident, abroad medical claims, motor automobiles and many others.
Monetary efficiency of the corporate has been persistently optimistic on the again of its adherence to the insurance coverage underwriting, which has helped earn belief of its purchasers, in flip serving to the enterprise thrive, Mr Rajbangshi stated.
That’s the reason the corporate has been ready to make sure good returns to its shareholders, he added.
Nonetheless, the stronger greenback and largely non-existent third-party insurance coverage for automobiles slowed down insurance coverage enterprise, stated Mr Rajbangshi. In any other case, the revenue would have been a lot increased, he added.
Third-party insurance coverage is a coverage bought by the insured from the insurer for defense towards claims by a 3rd social gathering. For instance, the proprietor of a automobile pays a premium to an insurance coverage firm to cowl the harm in a street accident involving the automobile.
In Bangladesh, nobody buys third-party insurance coverage merchandise since it’s not necessary. As per the Motor Autos Ordinance 1983, third-party insurance coverage was obligatory however it’s not necessary beneath the Highway Transport Act 2018 which is in impact. Revenue from the section plunged after the withdrawal of the requirement.
Reliance Insurance coverage is actively pursuing unconventional strains of enterprise, akin to legal responsibility, bankers blanket bonds (BBB) and prolonged guarantee insurance coverage, stated the corporate CFO.
It’s also extending its analysis & growth work to develop crop insurance coverage merchandise on the micro insurance coverage degree and discover the viability within the context of hostile climate occasions in Bangladesh as a consequence of international warming, he stated.
“We put emphasis on prudent underwriting, picky funding devices, optimisation of reinsurance, and human capitalisation to reap the fruits of the prospects.”
The corporate’s gross premium revenue has elevated for the final two consecutive years, facilitated by penetration into the brand new line of enterprise.
Regardless of the hefty revenue, the corporate’s inventory value fell 1.76 per cent to Tk 61.40 on Monday.
The web asset worth per share dropped barely to Tk 64.15 in 2022. This occurred because of the drop out there worth of investments in securities and different investments, the corporate stated in its inventory change submitting.
The web working money circulation per share additionally fell 17 per cent to Tk 6.60 because of the hike in agent fee bills and reinsurance cost.
In the meantime, general the insurance coverage business in Bangladesh is grappling with a serious disaster because the scarcity of US {dollars} has made it tough for native insurers to make premium funds to overseas reinsurers.
There are 46 basic insurers and 34 life insurers working in Bangladesh, of them 56 are listed on the inventory market.
Out of the non-life insurance coverage corporations in Bangladesh, about 12 reinsure their enterprise with corporations in the UK, Germany, Singapore, South Korea, Switzerland, Thailand and India, business folks say.
Reliance Insurance coverage is likely one of the corporations that reinsure their insurance policies abroad and are actually struggling probably the most for not with the ability to remit premium because of the dollar crunch.
The corporate official stated purchasers of the insurer included many reputed nationwide and multinational conglomerates.
“Through the years, Reliance has established a monitor document as a sound and reliable insurer, persistently assembly its commitments and by offering insurance coverage options to the person wants of its purchasers,” he added.
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