Green Delta Insurance reported a 243% growth in profit in the April-June quarter this year after regulators postponed a 15% agent commission on insurance premium income.
At the end of the second quarter, Green Delta's net profit stood at Tk22.32 crore and earnings per share Tk2.23, which was Tk5.73 crore and Tk0.65 respectively at the same period a year ago.
Earlier, on 5 February this year, the Insurance Development and Regulatory Authority (IDRA) issued a circular regarding the postponement of insurance agent commission for the non-life insurer until further notice.
The insurance regulator took this decision, as non-life insurance companies continued to pay a large amount to agents as commission violating the 15% limit.
Following the decision, the company did not spend any money as agent commission, while last year it paid Tk10 crore as agent commissions during the same period.
Besides, a booming capital market also helped the company to gain a massive growth in profit.
Meanwhile, despite the ongoing second wave of the Covid-19 pandemic, Green Delta's premium income from insurance coverage increased by 16% to Tk95.22 crore. But net claim of insurance declined by 81% to Tk0.78 crore during the second quarter compared to the previous year.
At the end of the first half of this year, its net profit stood at Tk38.76 crore and earnings per share stook at Tk3.87.
The company had paid a 24.50% cash and 7.50% stock dividends to the shareholders for the last year.
Within May-June, its share price jumped by 131% to Tk144 at the Dhaka Stock Exchange (DSE). At the end of Tuesday trading session, its share price closed at Tk120.30 each.