FE Today Logo

SBC posts 10pc net profit

FE Report | September 19, 2019 00:00:00

The lone state-owned non-life insurer Sadharan Bima Corporation (SBC) fetched an approximately 10-per cent net profit after tax in the 2018 calendar year.

The healthy profit is attributable to premium earnings from the government's mega development projects.

SBC earned a net profit to the tune of Tk 2.33 billion in the year under review against Tk 2.12 billion in 2017, according to an audited financial statement.

On the other hand, the profit before tax was Tk 3.25 billion in 2018 compared to Tk 3.02 in 2017.

SBC underwrites Rooppur Nuclear Power Plant, Matarbari Power Plant, Single-Point Mooring of Eastern Refinery, rail line building project on Padma Bridge projects.

It also insures Chattogram-Dohazari rail line construction projects, Padma Bridge Link Road and Bangabandhu Satellite project-1.

Such income is usually shown in miscellaneous premium earnings that shoot up by over Tk 172 million in 2018 over 2017.

SBC managing director Syed Shariyar Ahsan said mega projects aside, other components like income from reinsurances and real estate helped raise its revenue.

"We've planned to introduce a few more products this year which are at their final stages," he told the FE.

SBP wants to launch hospitalisation scheme for government employees and crop insurance for farmers.

Under the hospitalisation scheme, Mr Ahsan said, it will provide hospital costs for public servants.

On the other hand, there are many livestock farms across the country. They need risk coverage.

"We expect that if the projects get going shortly, they will help earn more premium earnings in the current calendar year," Mr Ahsan observed.

"We had a good amount of revenue from our buildings in different areas of the country which also help boost our income."

In the meantime, SBC recently contributed Tk 500 million to the national exchequer for the year that ended in December 2018.

Established in 1973, SBC has a strong financial base having more than 20-per cent stake in the country's total non-life insurance market. The company is entitled to 50 per cent of the public-sector business in Bangladesh.

The Insurance Corporation (Amendment) Act 1990 provides that 50 per cent of all insurance business relating to any public property or to any risk or liability appertaining to any public property shall be placed with SBC.

The remaining fifty per cent of such business may be placed with this Corporation or with any other insurers in Bangladesh, it stipulates.

But for practical reason and in agreement with the Insurance Association of Bangladesh, SBC underwrites all the public-sector business.

Fifty per cent of that business is distributed among existing 45 private general insurance companies equally under National Co-insurance Scheme.

[email protected]

Share if you like