Sena Insurance and Crystal Insurance witnessed notable declines on the Dhaka Stock Exchange (DSE) on Tuesday, despite reporting improved annual profits for 2025, raising questions over investor sentiment and market expectations.
Army-managed general insurer Sena Insurance, a subsidiary of the Sena Kalyan Sangstha (SKS) of the Bangladesh Armed Forces, posted a year-on-year profit increase of 20.51 per cent, earning Tk 206.8 million in 2025 compared to Tk 171.7 million in 2024. The company announced a 15 per cent cash dividend for its shareholders for the year.
However, operational performance revealed a contrasting trend. Cash flow from operations fell significantly to Tk 5 per share in 2025 from Tk 7.23 per share in 2024, suggesting potential liquidity pressures despite the higher net profit. Following the earnings announcement, Sena Insurance shares dropped 3.13 per cent, closing at Tk 58.60 per share on Tuesday.
Similarly, Crystal Insurance Company Limited reported a 6.71 per cent increase in profit, recording Tk 146.96 million in 2025 against Tk 137.82 million in 2024. The company, maintaining a stable AA2 credit rating, declared a 12 per cent cash dividend for its shareholders. Nonetheless, its cash flow from operations fell to Tk 1.74 per share from Tk 2.20 per share in the previous year. The reasons for the decline in cash flow were not disclosed by either insurer.
The market reaction indicates that investors may be more sensitive to operational liquidity metrics than headline profit figures, reflecting broader concerns about future cash generation and potential payout sustainability.
Key Financial Indicators of Sena and Crystal Insurance (2024–2025)
| Company | Profit 2024 (Tk mn) | Profit 2025 (Tk mn) | YoY Profit Change | Cash Flow per Share 2024 (Tk) | Cash Flow per Share 2025 (Tk) | Dividend (%) | Share Price Change (DSE) |
|---|---|---|---|---|---|---|---|
| Sena Insurance | 171.7 | 206.8 | +20.51% | 7.23 | 5.00 | 15% | -3.13% |
| Crystal Insurance | 137.82 | 146.96 | +6.71% | 2.20 | 1.74 | 12% | -4.58% |
Analysts suggest that the decline in share prices, despite improved profitability, may be attributed to shrinking operational cash flows, signalling potential caution among investors regarding the companies’ short-term liquidity and operational efficiency.
The contrasting trends between profit growth and falling cash flows highlight the complexities of insurance sector financials, where underwriting performance, claim settlements, and investment returns collectively influence market perceptions.