• Wednesday, Aug 10, 2022
  • Last Update : 04:24 pm

Green Delta Insurance posts record profit in 2020

  • Published at 12:27 am February 16th, 2021
Green Delta Insurance

The profit soared for cuts in agency cost, lower claim expense and management expense

Green Delta Insurance, the leading non-life insurer in Bangladesh, saw its profit more than double in 2020 on the back of lower operational expenses.

The 35-year-old insurer logged in a profit of about Tk 66.7 crore for the year, in contrast to Tk 30.1 crore in 2019. 

The profit soared due to a reduction of 34 per cent in the agency cost, coupled with a decline of 31 per cent in claim expense and 18 per cent in management expense, it said in its earnings disclosure on Monday.

Subsequently, the company announced a cash dividend of 24.5 per cent and a stock dividend of 7.5 per cent for the year, up from 15 per cent cash and 5 per cent stock dividend a year earlier.

“We have reduced all types of management expenses except salaries and allowances for employees, Syed Moinuddin Ahmed, additional managing director and company secretary of Green Delta Insurance, told Dhaka Tribune. 

On the other hand, due to the Insurance Development and Regulatory Authority’s move to strictly adhere to the 15 per cent commission on premiums, the agent commission has decreased. 

“As a result, our profits have increased,” Ahmed added.

Investors welcomed the year-end announcements, helping the stock price to close at Tk 60.7 per share after registering a gain of 6.9 per cent during the trading session on Monday. 

In 2020, shares of Green Delta Insurance, which has been listed in 1989 with the Dhaka Stock Exchange and in 1995 with the Chittagong Stock Exchange, gained about 16.4 per cent. 

As of January, the sponsors and directors of the company owned 33.8 per cent of its stake, according to the website of the Dhaka bourse.