General Insurance Profits Grow as Marine Business and Investment Income Stabilise

General insurers in Bangladesh reported strong year-on-year profit growth for the July-September 2025 quarter, largely driven by a recovery in marine insurance and stronger returns from investments, particularly in government securities.

Industry insiders noted that marine insurance, which accounts for nearly 60% of the general insurance market, continued to show signs of recovery as import and export activities returned to normal. Higher interest rates on government bonds and treasury bills also contributed to a boost in investment income, supporting overall profitability across much of the sector.

Experts observed that the industry began to show steady improvement from early 2025 as trade activities normalised and import/export operations gained momentum, leading to an increase in Letters of Credit (LC) openings. The recovery has been especially notable in marine insurance, which had been significantly disrupted by the dollar crisis in recent years.

However, the recovery has not been uniform across all companies. Some insurers have been impacted by political developments, losing major clients and experiencing slower recovery.

A review of the July-September 2025 financial results of 43 insurers listed on the Dhaka Stock Exchange shows that 27 companies posted year-on-year profit growth, while 16 reported a decline.

Marine insurance, which covers losses or damage to ships, cargo, and other marine assets during sea or river transport, is typically divided into Marine Hull Insurance (for vessels) and Marine Cargo Insurance (for goods). This coverage protects against risks such as shipwrecks, collisions, storms, theft, and other unforeseen events.

Sector Recovery and Growth

United Insurance's Managing Director, Khawja Manzer Nadeem, told The Business Standard that the company saw strong growth during the July-September quarter as the dollar crisis eased. “During this period, more than 60% of our total business came from marine insurance. Our investment income also increased significantly due to higher interest rates. We received more LCs from the garments, pharmaceuticals, and essential goods sectors,” he explained.

He added that during the dollar shortage, banks had been opening LCs only for essential items, causing marine insurance business to fall by 35-40%. Nadeem highlighted that most of the country’s marine insurance business relies on imports by the garment and industrial sectors, both of which have been steadily recovering since January. As a result, the marine insurance sector as a whole has grown by over 20%, though growth rates vary between companies.

Company Performance

Among individual insurers, Paramount Insurance saw an impressive 214.8% year-on-year increase in earnings per share (EPS) for Q3 2025, rising from Tk0.27 to Tk0.85. The company attributed this growth mainly to higher interest income and a modest increase in premium collections.

Desh General Insurance recorded a 108.3% year-on-year profit rise, while Peoples Insurance posted 102.5% growth, driven by increased premium collections, rental earnings, and investment income.

However, some insurers faced challenges. Agrani Insurance reported a significant loss in Q3 2025 due to lower premium income. Claims expenses rose following several fire incidents during the period, resulting in a loss per share of Tk32 compared to a profit of Tk29 per share in the same quarter last year.

Provati Insurance saw its profit fall by 60.7% year-on-year, Federal Insurance reported a 38.1% decline, and Asia Pacific General Insurance recorded a 31% drop in profits.

Outlook for the Sector

Overall, despite pockets of losses and slower recovery for some companies, the general insurance sector is showing signs of stabilisation. Experts believe that continued recovery in trade, along with strong performance in marine insurance and steady returns from investments, could drive further growth in the coming quarters.