Non-life ins cos earn moderate growth

Non-life insurance companies have earned moderate growth in the third quarter of this year.
Profits of 20 non-life insurance companies have increased while 13 dropped and one suffered losses during the July-September (first quarter) period of this year of total 34 listed non-life insurance
In the first nine months of this year, the combined profits after taxes of companies stood at Tk 2.5 billion, a rise of 10 per cent from Tk 2.3 billion of the same period a year back.
Five top insurers that made highest profits are Pragati, Reliance, Phoenix, Eastland and Rupali.
The companies that made lower profits are Agrani, Asia, Asia Pacific, Bangladesh General Insurance (BGIC), Continental, Eastern, Mercantile, Nitol, Peoples, Provati, Sonar Bangla and Takaful.
Green Delta Insurance suffered losses of Tk 43 million in the third quarter of 2013, which was Tk 69.67 million in the same period a year ago.
An official in Insurance Development Regulatory Authority ( IDRA) said the fall of import of capital machinery and industrial raw material affected the income of the insurance companies.
The central bank figures showed the import of capital machinery in September fell to $147 million from $190.78 million in July.
He said natural disaster like flood, cyclone is under the coverage of insurance. But over the last three years, Bangladesh did not see natural disaster.
As a result, people are reluctant to pay higher premium against the natural disaster insurance," he added.
However, Bangladesh Insurance Association President Sheikh Kabir Hossain blamed political instability for slower growth of non-insurance companies.