Sadharan Bima Corporation (SBC), the country's lone state-owned non-life insurer, expects to make a robust profit this year on the back of premium earnings from the mega projects under the public sector.
It expects to fetch a net profit of Tk 3.25 billion this year ending in December next, which is nearly 8.0 per cent up from the last year, SBC Managing Director Syed Shariyar Ahsan told the FE.
"We've concentrated on the government's mega projects that would give us better earnings at the end of this year," he said.
The mega projects are Rooppur Nuclear Power Plant, Matarbari Power Plant, Single Point Mooring of the Eastern Refinery, railway line construction project on the Padma bridge and Chattogram-Dohazari rail line construction projects.
"We hope to earn a total of Tk 4.0 billion in phases from the Rooppur Power Plant," said a senior official at the re-insurance department of the company.
In the meantime, the company's revenue income from interest and dividend fell in 2017. The balance sheet shows that the interest incomes from different deposits fell by over Tk 140 million in 2017.
The dividend income fell to some extent and stood at Tk 618 million in 2017. The SBC has stakes in different local and multinational companies like the British American Tobacco Bangladesh Company Limited.
"Actually, the rate of interest on time-deposits went down in the recent years, causing less interest income," Mr. Ahsan said.
However, the SBC's total income in 2017 did not rise significantly as compared to 2016, according to the latest annual report. It earned Tk 10.69 billion in 2017 against Tk 10.13 billion in 2016.
The company mostly earns from its re-insurance business, followed by direct premiums consisting of marine, fire and miscellaneous.
In the meantime, it will contribute to the national exchequer worth Tk 400 million for the year ended in December 2017 and the money will be handed over to the government on October 28 next, people familiar with the issue said.
They said the company had contributed the same amount for the year 2016.
The SBC, emerged in 1973, has a strong financial base. It has over 20 per cent stake in the country's total non-life insurance market. Its return on assets was 1.02 per cent in 2017 against 1.0 per cent in 2016.
Its total assets climbed to nearly Tk 34.0 billion in 2017 compared to Tk 27.17 billion in 2016, according to its financial statements.
jasimharoon@yahoo.com