Even as profits rise, Sena and Crystal Insurance shares lag on the DSE

Shares of Sena Insurance and Crystal Insurance suffered declines on the Dhaka Stock Exchange (DSE) on Tuesday, despite both insurers reporting year-on-year profit growth for 2025.

Sena Insurance, an Army-run general insurer under the aegis of Sena Kalyan Sangstha (SKS), posted a profit of Tk 206.8 million for 2025, marking a 20.51 per cent increase over the previous year. The company declared a 15 per cent cash dividend for its shareholders.

However, the insurer’s operational cash flow fell significantly, dropping to Tk 5 per share in 2025 from Tk 7.23 per share in 2024, raising concerns among investors regarding liquidity despite robust earnings. Following the earnings announcement, Sena Insurance shares declined 3.13 per cent, closing at Tk 58.60 per share on the DSE.

Similarly, Crystal Insurance Company Limited reported a profit of Tk 146.96 million for 2025, up 6.71 per cent from the prior year. The company, maintaining a stable credit rating of “AA2”, declared a 12 per cent cash dividend. Nevertheless, its operational cash flow decreased to Tk 1.74 per share, down from Tk 2.20 per share in 2024.

Investors appeared cautious about the declining cash flows, as neither insurer offered an explanation for the shrinkage. Consequently, Crystal Insurance shares fell 4.58 per cent to close at Tk 80.00 per share on Tuesday.

Analysts suggest that while profit growth is a positive signal, falling operational cash flow may indicate higher expenses, delayed receivables, or liquidity challenges, prompting investors to reassess the stocks’ valuation.

Key Financial Metrics (2024–2025)

Despite the positive earnings trajectory, the market reaction reflects investor apprehension over operational cash flow trends, highlighting a potential divergence between reported profits and underlying liquidity.