In the first quarter of the current year (January–March), United Insurance Limited, a listed non-life insurance company on the capital market, experienced significant pressure on its financial performance. The company reported a sharp decline in earnings per share (EPS), nearly halving compared with the same period last year, primarily due to rising claim settlement costs and weaker returns from its investment portfolio.
According to the unaudited financial statement published through the Dhaka Stock Exchange, the insurer recorded an EPS of 24 paisa in the first three months of 2026, down from 45 paisa in the corresponding quarter of the previous year. This represents a decline of approximately 46 per cent year-on-year. Market analysts note that such contractions in the insurance sector are often linked to increased claim burdens and volatility in capital market investments.
The company attributed the downturn mainly to a surge in claim payments to policyholders during the period. Higher settlement of insurance claims, particularly those of a complex or high-value nature, significantly increased operational costs. At the same time, returns from investments in the stock market and other financial instruments failed to meet expectations, further compressing overall profitability.
Despite the fall in earnings, there was a modest improvement in the company’s asset position. Net asset value per share rose to 32.11 taka at the end of March 2026, compared with 31.04 taka at the end of December 2025. This suggests that while short-term profitability came under strain, the company’s underlying asset base has strengthened slightly.
However, cash flow performance painted a more concerning picture. Net operating cash flow per share dropped sharply to a negative 2.79 taka in the first quarter, compared with a positive 11 paisa in the same period a year earlier. This deterioration is largely attributed to increased claim payments alongside slower premium collection, which together created significant pressure on liquidity.
Financial Performance Overview
| Key Indicator | Q1 2026 | Q1 2025 |
|---|---|---|
| Earnings Per Share (EPS) | 24 paisa | 45 paisa |
| Year-on-Year Change | -46% | — |
| Net Asset Value Per Share | 32.11 taka | 31.04 taka |
| Net Operating Cash Flow Per Share | -2.79 taka | 11 paisa |
Capital market analysts suggest that the performance of insurance companies is typically driven by two core factors: the volume of claim settlements and returns from investment activities. In the case of United Insurance, both factors came under pressure during the reporting period, resulting in reduced profitability.
Nevertheless, experts emphasise that the improvement in net asset value indicates a degree of financial resilience. They also believe that if the company can enhance its claims management framework and adopt a more diversified investment strategy, there is potential for earnings recovery in the medium term, provided market conditions stabilise.