Peoples Insurance PLC has reported a record profit for the year 2025, driven by strong premium growth, improved underwriting performance and lower claim expenses.
The non-life insurer posted a profit of Tk 313 million for the year, registering a 57 per cent surge from Tk 199 million in 2024. The strong performance translated into a sharp rise in earnings per share (EPS), which climbed to Tk 4.19 from Tk 2.84 the previous year, according to a disclosure issued on Friday.
A company official said the earnings growth was driven by an expanded business portfolio alongside disciplined risk selection, which helped keep claim payouts at a manageable level. The combination of higher revenue and controlled expenses significantly strengthened the bottom line during the year.
Despite the record earnings, the board of directors declared a 10.50 per cent cash dividend, unchanged from the previous year.
The insurer experienced a notable rise in net premium income in 2025, reflecting growing demand for insurance coverage from both corporate and individual clients. Growing awareness of risk management and expansion across key sectors contributed to higher policy sales.
Although full-year financial statements are yet to be disclosed, the company's net premium income for the first nine months of 2025 rose 20 per cent year-on-year to Tk 353 million.
Market analysts noted that higher premium income typically boosts insurers' profitability, provided claim ratios remain stable -- a condition that appears to have favoured the company.
Prudent underwriting practices played a key role, as the insurer carefully selected risks and priced policies effectively. Claim expenses declined to Tk 59 million during the January-September period, down from Tk 85 million a year earlier, improving underwriting margins.
Like other insurers, the company invested a significant portion of its funds in government securities and fixed-income instruments. A favourable interest rate environment and stable investment conditions supported higher investment income.
Investment and other income rose 23 per cent year-on-year to Tk 123 million in the nine months through September 2025.
Meanwhile, underwriting income surged four-fold to Tk 49 million during the same period.
Improved cost management and operational efficiency also contributed to the strong financial performance. Key indicators reflected this trend, with net operating cash flow per share increasing to Tk 5.24 from Tk 3.66 a year earlier.
The net asset value, which refers to the excess of total assets over total liabilities, reached Tk 37.95 per share in 2025, up from Tk 34.81 in the previous year.
The company is scheduled to hold its annual general meeting (AGM) on June 24, with the record date set for May 20.
Shares of the company closed at Tk 54.3 on Thursday, gaining 1.69 per cent over the previous session.
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