Central Insurance financial analysis: adverse 2025 audit opinion, combined ratio 79.8% (Oct 2026)

Investment considerations: adverse audit opinion on 2025, EPS Tk 1.87, nine-month 2026 EPS Tk 1.79

What it is. Central Insurance PLC (DSE: CENTRALINS) is a non-life insurer incorporated on 12 November 1987 and listed on the Dhaka and Chittagong stock exchanges in 1995 [1 p.19]. It writes fire, marine, motor and miscellaneous business through 38 branches, with its registered office at Central Insurance Bhaban, 7-8 Motijheel [1 p.19]. The name changed from Central Insurance Company Limited with effect from 7 January 2026 [12]. It has 53,144,823 shares of Tk 10; at 30-Sep-2026 sponsors and directors held 39.33%, institutions 15.85% and the general public 44.82% [7 p.12]. The latest audited accounts are for the year ended 31 December 2025, the period printed on the cover and in the auditor's report [1 p.1] [1 p.3].

Where it stands. Gross premium was Tk 600.6m in 2025, up 3.4% on Tk 580.8m, and net premium was Tk 415.7m, up 4.6% [1 p.31] [16]. Underwriting profit was Tk 74.6m against Tk 80.3m, and profit after tax was Tk 99.5m (EPS Tk 1.87) against Tk 98.2m (EPS Tk 1.85) [1 p.9] [1 p.11]. The auditor, Mahfel Huq & Co., gave an adverse opinion on the 2025 statements, stating that they 'do not present fairly the financial position of the company as at 31 December 2025' [1 p.3]. For the nine months to 30-Sep-2026 the company reported profit after tax of Tk 94.9m (EPS Tk 1.79) against Tk 77.0m (EPS Tk 1.45) [7 p.2]. The shares closed at Tk 43.0 on 29-Oct-2026, against Tk 39.5 a year earlier [11] [16].

What drives shareholder returns. Central earns from underwriting and from investments and property. In 2025 underwriting profit was Tk 74.6m and 55.1% of pre-tax profit; interest, rent, dividends and gains totalled Tk 105.5m and 77.9% of pre-tax profit, with Tk 44.7m of unallocated management expenses deducted below [1 p.9] [16]. Interest (Tk 69.3m) and rent from its Motijheel and Kawran Bazar buildings (Tk 34.9m) made up 98.8% of that non-underwriting income (our arithmetic) [1 p.9] [1 p.29]. The balance sheet carries land and buildings at revalued amounts; the revaluation reserve of Tk 1,508.6m is 56.0% of printed equity, and NAV per share is Tk 50.69 with revaluation and Tk 20.63 without it [1 p.8] [1 p.31] [16]. Capital allocation in 2025: a 12% cash dividend (Tk 63.8m on 53.14m shares, 64.2% of EPS; our arithmetic), Tk 37.4m to the reserve for exceptional losses, and no secured overdraft at the year-end [1 p.34] [1 p.10] [1 p.28] [16].

• Audit opinion on FY2026. Signpost: the auditor's report on the FY2026 statements (board meeting inferred between 21-Mar and 20-May 2027 from six precedents; no date notified).
• Balances with SBC. Signpost: notes on amounts due from and due to other insurers in the FY2026 statements (Tk 323.2m due from SBC and Tk 107.0m due to SBC at end-2025).
• Agent commission in FY2026. Signpost: the agent-commission line in the FY2026 revenue accounts; Tk 33.3m was booked for January-September 2026 and nil for July-September.
• Consolidation of Central Insurance Investment Ltd. Signpost: note 39 of the FY2026 statements; the 2025 note states the subsidiary 'is yet to get licenses'.
• Recovery of the fixed deposits at Sommilito Islami Bank. Signpost: the cash note and any emphasis-of-matter paragraph in the FY2026 audit report.

Business: fire 59.0% of 2025 gross premium, marine 23.9%, miscellaneous 13.9%, motor 3.2%

How it makes money. A Bangladeshi general insurer collects premium, cedes part of each risk to reinsurers, who pay a commission back, sets aside a reserve for the unexpired part of each policy, and pays claims, agency commission and management expenses from the rest. Central reserves 40% of the year's net premium for fire, marine cargo, motor and miscellaneous business and 100% for marine hull [1 p.11] [1 p.24]. Premium income is recognised 'when insurance policies are issued and premium collected', and the company's share of public-sector business is booked when the statement of accounts from Sadharan Bima Corporation (SBC) is received [1 p.23]. The four class revenue accounts add up to the underwriting profit; interest, rent, dividends and gains less unallocated expenses give the pre-tax profit [1 p.9].

Classes. Fire is the largest class of the four: Tk 354.5m of gross premium in 2025, 59.0% of the total, of which the company kept 71.5% after reinsurance [1 p.31] [16]. Marine wrote Tk 143.3m (23.9%) and kept 74.4%; miscellaneous wrote Tk 83.4m (13.9%) and kept 44.2%; motor wrote Tk 19.3m (3.2%) and kept 97.1% [1 p.31] [16]. Management expenses of Tk 178.6m are split across the four revenue accounts, with Tk 109.6m charged to fire [1 p.31]. Note 19 states that the total 'represents salary, office rent, telephone bill, printing & stationery, electric bill, other revenue expenses Tk. 170,538,927 and public sector business expenses Tk. 8,055,044' [1 p.31].

Six years of premium. Gross premium rose in every year from 2021 to 2025, from Tk 379.9m in 2020 to Tk 600.6m in 2025 (our derivation: a compound 9.6% a year) [6 p.35] [1 p.31] [16]. Annual growth ranged from 3.4% (2025) to 23.0% (2021) [16]. Net premium rose 40.9% in 2021 and between 3.5% and 5.6% a year from 2022 to 2025 [16]. Retention (net over gross premium) ranged from 64.7% (2020) to 74.1% (2021) and was 69.2% in 2025 [16]. Premium ceded to reinsurers was Tk 184.9m in 2025 against Tk 183.3m in 2024 [1 p.31].

Property and the subsidiary. Central owns land and buildings at 7-8 Motijheel and Kawran Bazar and floor space in Agrabad, Chattogram; the land and buildings were revalued by Fames & R, Chartered Accountants, 'during the year 2020' and the board approved the report at its 231st meeting on 15-11-2021 [1 p.29]. The revalued land and building total Tk 1,840.5m of the Tk 1,926.6m of fixed assets at end-2025 [1 p.29]. Part of the property is let: income from properties was Tk 34.9m in 2025 [1 p.9]. The company formed Central Insurance Investment Ltd. 'with a view to carrying out business activity of Merchant Bank, but the permission for operating business as Merchant Bank not yet obtained' [1 p.19].

Underwriting: 2025 profit Tk 74.6m; combined ratio 79.8% against 56.3% in 2021

Claims. Net claims incurred were Tk 97.5m in 2025 against Tk 78.0m in 2024 [1 p.11]. The company paid Tk 80.7m of claims net of reinsurance in 2025, and estimated outstanding claims rose from Tk 65.9m to Tk 82.7m [1 p.11]. The loss ratio (net claims over net premium) was 23.5% in 2025, the highest of 2020-2025; the lowest was 3.6% in 2020 [16]. Outstanding claims have risen every year from Tk 30.2m at end-2020 [6 p.32] [1 p.8].

Combined ratio. On one definition used for every insurer in this note (net claims plus revenue-account management expenses plus agency commission, less reinsurance commission, over net premium), Central's combined ratio was 62.1% in 2020, 56.3% in 2021, 69.3% in 2022, 71.4% in 2023, 77.8% in 2024 and 79.8% in 2025 [16]. Across 2021-2025 the ratio rose in each year. The underwriting margin (underwriting profit over net premium) went from 36.2% in 2020 to 18.0% in 2025 [16]. Underwriting profit does not equal net premium less the combined-ratio costs, as it also includes the change in the unexpired-risk reserve [1 p.11].

By class. Fire net claims were Tk 46.8m, 18.5% of fire net premium, against Tk 32.1m (13.5%) in 2024; fire underwriting profit was Tk 50.7m against Tk 48.7m [1 p.12] [16]. Marine net claims rose to Tk 43.8m from Tk 34.3m, 41.1% of marine net premium, and marine profit was Tk 19.2m against Tk 17.7m [1 p.13] [16]. Motor profit rose to Tk 3.8m from Tk 0.3m, with motor net claims of Tk 6.0m against Tk 10.5m [1 p.14]. Miscellaneous profit fell to Tk 1.0m from Tk 13.7m; miscellaneous net premium was Tk 36.9m against Tk 21.0m, and miscellaneous management expenses Tk 29.0m against Tk 10.9m [1 p.15] [1 p.31].

Commission and expenses. Agency commission was Tk 86.8m in 2025, 20.9% of net premium and the highest of 2020-2025 in taka [1 p.11] [16]. Revenue-account management expenses fell 3.8% to Tk 178.6m, and unallocated management expenses in the profit and loss account rose to Tk 44.7m from Tk 39.8m, including Tk 15.7m of repair and financial expenses of properties and Tk 16.4m of depreciation [1 p.9] [1 p.11]. Total management expenses (both accounts) were 37.2% of gross premium in 2025 and ranged from 36.3% (2021) to 38.8% (2024) [16]. The filings do not compare management expenses with any regulatory limit. The 2025 report states 360 employees, against 432 a year earlier [1 p.32] [2 p.34].

Investments: interest Tk 69.3m and rent Tk 34.9m in 2025; shares Tk 74.0m below listed cost

Income. Non-operating income was Tk 105.5m in 2025: interest received and accrued Tk 69.3m, income from properties Tk 34.9m, dividends Tk 1.3m and no capital gain [1 p.9]. Interest income rose every year from Tk 40.2m in 2021 to Tk 69.3m in 2025 [6 p.9] [6 p.10] [4 p.9] [4 p.10] [2 p.11] [1 p.9]. Dividend income fell from Tk 8.3m in 2022 to Tk 1.3m in 2025 [6 p.9] [6 p.10] [4 p.9] [4 p.10] [2 p.11] [1 p.9]. Gains on sale of shares were Tk 17.0m in 2021 and below Tk 0.3m in each year from 2022 to 2025 [6 p.9] [6 p.10] [4 p.9] [4 p.10] [2 p.11] [1 p.9].

Deposits and bonds. Cash and cash equivalents were Tk 697.3m at end-2025: fixed deposits Tk 660.9m, short-term deposits Tk 38.3m, a current-account overdrawn balance of Tk 2.0m and cash in hand Tk 0.05m [1 p.30]. Treasury bonds were Tk 115.7m against Tk 99.9m [1 p.29]. The auditor's emphasis-of-matter paragraph 6 states that 'an amount of Tk. 6.44 crore has worth Fixed Deposit Receipts (FDR) has been placed with Sommilito Islami Bank which is doubtful of recovery' [1 p.4]. Tk 64.4m is 9.7% of the year-end fixed deposits (our arithmetic) [16]. The cash note does not list deposits bank by bank [1 p.30].

Shares. Investment in shares was Tk 42.3m at end-2025; note 12.01 sets this 'Fair (Market) value of Shares' against a 'Cost price of listed companies shares' of Tk 116.3m, giving a fair-value reserve of minus Tk 74.0m before deferred tax [1 p.29]. The loss of Tk 13.6m in 2025 went through other comprehensive income (Tk 8.5m after deferred tax) [1 p.29] [1 p.10]. The share annexure prints unquoted shares at a book value of Tk 11,541,180 and a carried value of Tk 6,541,180; the Tk 6,541,180 is Central Depository Bangladesh Ltd., ICB Islamic Unit Fund, ICB AMCL 1st Unit Fund and VNFUF, while GMG Air Lines Ltd. is printed at a cost of Tk 5,000,000 with no carried value [1 p.37]. The auditor's emphasis paragraph 7 says the Tk 6,541,180 'has been stated at cost' and that these investments 'were not subsequently measured or assessed in accordance with applicable requirements of IFRS 9' [1 p.4] [1 p.5]. The investment of Tk 100.0m in Central Insurance Investment Ltd. sits in the same note [1 p.29]. At 30-Sep-2026 the same note shows Tk 48.7m against a cost of Tk 113.9m [7 p.9].

Weight in profit. Interest, rent, dividends and gains were 77.9% of pre-tax profit in 2025, against 51.6% in 2021. Underwriting profit was 55.1% of pre-tax profit in 2025, against 69.8% in 2021 (the two shares add to more than 100% because unallocated management expenses are deducted below both) [16].

Ratios 2020-2025: ROE 3.7% on printed equity, 9.2% excluding revaluation; payout 64.2%

Growth. Profit after tax was Tk 108.0m in 2020, Tk 127.9m in 2021, Tk 107.9m in 2022, Tk 105.1m in 2023, Tk 98.2m in 2024 and Tk 99.5m in 2025 [6 p.36] [4 p.10] [2 p.11] [1 p.9]. The 2021 figure is the highest of the six years and 2024 the lowest. Pre-tax profit ranged from Tk 135.4m (2025) to Tk 160.8m (2021) [6 p.9] [6 p.10] [4 p.9] [4 p.10] [2 p.11] [1 p.9]. EPS as printed was Tk 2.18 for 2020 (on 49.44m shares) and between Tk 1.85 and Tk 2.41 for 2021-2025 on 53.14m shares [6 p.36] [1 p.31].

Returns. Return on average printed equity was 4.1% in 2022, 4.0% in 2023, 3.7% in 2024 and 3.7% in 2025 [16]. The 2021 figure of 6.6% is not comparable, as printed equity rose from Tk 1,236.8m to Tk 2,622.6m in 2021 when the revaluation was booked [6 p.36] [4 p.38] [16]. On the printed 'NAV without revaluation' (Tk 1,096.6m at end-2025), return on average equity was 10.6% in 2022 and 9.2% in 2025 (derived) [1 p.31] [4 p.38] [16]. Return on average total assets was 2.6% in 2025 [16].

Leverage and capital. Printed equity was 70.2% of total assets at end-2025, and net premium was 0.15 times printed equity [16]. The company had no secured overdraft at end-2025; the overdraft of Tk 32.3m at end-2024 had been allowed by Mercantile Bank Ltd., Nayabazar Branch, 'against lien of Fixed Deposit Receipts' [1 p.28]. Note 27 states 'There was no credit facility available to the Company under any contract and availed of as on December 31, 2025' [1 p.32]. Sundry creditors include a 'Loan from Central Insurance Investment Ltd.' of Tk 99.2m, unchanged from a year earlier [1 p.27]. The filings in the corpus for 2024 and 2025 do not print a solvency-margin calculation.

Cash conversion and payout. Net operating cash flow was Tk 87.2m in 2025 (NOCFPS Tk 1.64), 0.88 times profit after tax; it was 1.44 times in 2020 and 0.81 times in 2024, the lowest of the six years [1 p.17] [16]. The cash dividend was 6% for 2020 (with a 7.5% stock dividend), 18% for 2021, 15% for 2022 and 12% for each of 2023, 2024 and 2025 [6 p.36] [5 p.39] [4 p.38] [3 p.34] [12] [1 p.34]. Cash payout ranged from 27.5% of EPS (2020) to 74.7% (2021) and was 64.2% in 2025 [16]. The effective tax rate was 26.5% in 2025, against a range of 20.5% (2021) to 27.7% (2024) [16].

Peers 2025: combined ratio 79.8% at Central, 82.2% at Karnaphuli, 72.7% at Nitol, 63.7% at Peoples

Set and basis. The comparison uses three Dhaka general insurers' 2025 annual reports, on the company basis, each read from its own pages: Karnaphuli Insurance PLC, Nitol Insurance PLC and Peoples Insurance PLC [8 p.181] [9 p.189] [10 p.264]. Each auditor's opinion was read first. Karnaphuli's auditor, Ashraf Uddin & Co., states that the statements 'present fairly, in all material respects' [8 p.148]. Nitol's auditor, Mahfel Huq & Co., states that they 'present fairly, in all material respects' and adds three 'Emphasize of matter' paragraphs, including FDRs of BDT 14,500,000 held with banks 'which have subsequently merged into Sammilito Islami Bank PLC' [9 p.181]. Peoples' auditor, Ashraf Uddin & Co., prints 'present true and fair view. all material respects' [10 p.256]. Central's 2025 opinion is adverse [1 p.3].

What the table shows. On the same definition, Central's 2025 combined ratio of 79.8% was below Karnaphuli's 82.2% and above Nitol's 72.7% and Peoples' 63.7% [16]. Central's loss ratio of 23.5% compares with 27.4% at Karnaphuli and 21.6% at Nitol; Peoples reported net claims of minus Tk 2.7m, as outstanding claims at the year-end (Tk 275.3m) were below the opening figure (Tk 326.6m) [10 p.264] [16]. Reinsurance commission was 7.5% of net premium at Central against 15.1% at Karnaphuli, 20.5% at Nitol and 16.0% at Peoples (our arithmetic) [16]. Central's underwriting margin of 18.0% was the second lowest of the four, above Karnaphuli's 16.3% [16].

Profit lines. Central's pre-tax profit was Tk 135.4m in 2025 [1 p.9]. Karnaphuli's 'Net profit for the year carried down to Profit and Loss Appropriation Account', before tax and reserve for exceptional losses, was Tk 129.8m [8 p.156]. Nitol's 'Profit Before Tax' was Tk 113.0m and profit after tax Tk 81.5m (EPS Tk 1.93) [9 p.187]. Peoples' 'Net profit for the year carried down to Profit & Loss Appropriation Account' was Tk 312.7m [10 p.263]. These labels are not all the same line; the table compares underwriting only. Nitol's printed equity was Tk 1,321.3m and Peoples' Tk 1,753.4m at end-2025, against Central's Tk 2,694.2m, which includes Tk 1,508.6m of revaluation reserve [9 p.186] [10 p.260] [1 p.8].

Balance sheet and audit: adverse opinion on 2025; Tk 325.9m due from other insurers unconfirmed

Opinion. The auditor's report on 2025, signed by Wasequl H Reagan, FCA, of Mahfel Huq & Co. on April 16, 2026, carries the heading 'Adverse Opinion' and states: 'In our opinion, because of the matters discussed in the Basis for Adverse Opinion section of our report, the accompanying financial statements do not present fairly the financial position of the company as at 31 December 2025, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as described in policy note, the Companies Act 1994, the Insurance Act 2010, the Insurance Rules 1958, the Securities and Exchange Rules 2020 and other applicable laws and regulations.' [1 p.3] [1 p.7]. DSE posted the auditor's 'Adverse Opinion and Emphasis of Matters' notice on 2-Jun-2026 [12].

Basis for the adverse opinion (quoted). 'As disclosed in the financial statements, premium collection amounted to Tk. 600,555,897 (as per Form-XL), whereas premium collection as per VAT returns amounted to Tk. 540,995,438, resulting in an unexplained difference of Tk. 59,560,459 without any satisfactory reconciliation. Consequently, we were unable to determine whether premium income and related balances are free from material misstatement.' 'Additionally, as disclosed in note 17.00, Amount Due from Other Persons or Bodies Carrying on Insurance Business amounting to Tk. 325,924,680, and note 7.00, Amount Due to Other Persons or Bodies Carrying on Insurance Business amounting to Tk. 107,982,981, remain unreconciled and unconfirmed by third parties.' 'The Company has recorded investment in Central Insurance Investment Limited amounting to Tk. 99,999,700 without relevant approval from the Insurance Development and Regulatory Authority (IDRA).' 'Furthermore, as disclosed in note 8.00 and note 15.00, no adjustment was made during the year between Provision for Income Tax and Advance Income Tax balances, resulting in overstatement of assets and liabilities.' [1 p.3]

Further basis items (quoted). 'Sufficient appropriate audit evidence was not provided in respect of Deposit Premium, Agent Balance and Bank Guarantee under note 5.00, 6.00 and 15.00.' [1 p.3] 'Contrary to IDRA Circular No. Gen-29/2011 dated 24 November 2011, the Company accepted bank guarantees as a mode of premium collection and issued insurance cover without actual realization of premium through prescribed banking channels.' 'As disclosed in note 18.00, cash and cash equivalents, appropriate bank reconciliations were not provided and complete bank statements for certain bank accounts were not made available for audit.' 'The Company does not fully comply with IFRS 16 in accounting for lease arrangements, which may result in material misstatement of right-of-use assets, lease liabilities and related measurements and disclosures.' [1 p.4] On key audit matters the report states: 'Except for the matters described in the basis for adverse opinion section of our report we have determined that there are no other key audit matters to communicate in our report.' [1 p.5]

Emphasis of matters (quoted). The report lists seven: (1) note 9.00 'is a noncompliance as per sub clause (vii) of clause no. (3) and also clause no (8) of Bangladesh Securities and Exchange Commission Directive ref no. BSEC/CMRRCD/2021-386/03- dated 14-Jan-2021' and the Capital Market Stabilization Fund Rules; (2) 'The gratuity fund of the company is yet to be recognized by NBR'; (3) 'the company is yet to introduce fund for Workers Profit Participation Fund (WPPF) as per Labour law and Labour rules'; (4) 'Central Insurance PLC does not maintain a comprehensive Fixed Assets Register (FAR)'; (5) 'in most cases, we did not receive any response or confirmation from the respective banks'; (6) the Tk 6.44 crore of FDRs with Sommilito Islami Bank 'which is doubtful of recovery'; (7) unquoted shares of Tk 6,541,180 'stated at cost'. It ends: 'Our opinion is not modified in respect of these matters.' [1 p.4] [1 p.5]

Legal and regulatory report (quoted). Under 'Report on other Legal and Regulatory Requirements' the auditor states: 'a) We have not obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit and made due verification thereof'; 'b) In our opinion proper books of accounts, records and other statutory books as required by law were not kept by the Company so far as it appeared from our examinations of those books'; and that the statements 'are not in agreement with the books of account and returns' [1 p.6] [1 p.7].

2024 opinion (quoted). The 2024 report states: 'In our opinion, except for the matters described in the Basis for Qualified Opinion section of the report, the accompanying financial statements present fairly, in all material respects, the financial position of the company as at 31 December 2024' [2 p.2]. Its basis cites amounts due from other insurers of 306,069,615 taka and due to other insurers of 126,352,545 taka that 'are unreconciled and unconfirmed by the third party', and the absence of consolidated statements [2 p.2]. Its key audit matters were premium income, property, plant and equipment, and outstanding claims [2 p.3] [2 p.4] [2 p.5]. DSE posted the 2024 'Qualified Opinion, Emphasis of Matter and Other Matter' notice on 15-May-2025 [12].

Balances with SBC and other insurers. Amounts due from other insurers were Tk 325.9m at end-2025 (SBC Tk 323.2m, other insurers Tk 2.7m), up from Tk 204.9m at end-2020; amounts due to them were Tk 108.0m (SBC Tk 107.0m) [1 p.30] [1 p.27] [6 p.8]. Due-from balances were 54.3% of gross premium in 2025 and 12.1% of printed equity [16]. The 'other insurance companies' receivable of Tk 2,708,089 is the same figure as in 2023 and 2024 [3 p.2] [1 p.30]. At 30-Sep-2026 the due-from balance was Tk 333.4m and the due-to balance Tk 131.2m [7 p.10] [7 p.11].

Sundry debtors and tax. Sundry debtors were Tk 581.5m at end-2025, of which advance income tax Tk 464.1m, bank guarantee Tk 57.1m, agent balance Tk 33.3m and advance income tax against house rent Tk 18.2m; the note states 'The above debts are considered good for realization / adjustment' [1 p.30]. Sundry creditors of Tk 731.8m included the provision for income tax of Tk 511.4m and deferred tax of Tk 88.5m [1 p.27]. At 30-Sep-2026 advance income tax was Tk 116.8m and the provision for income tax Tk 167.5m, and sundry debtors were Tk 193.7m; the interim notes do not describe the change [7 p.10].

Assets and contingencies. Total assets were Tk 3,836.6m at end-2025, of which fixed assets Tk 1,926.6m (50.2%) and cash and cash equivalents Tk 697.3m [1 p.8] [16]. The Form 'AA' classified summary of assets totals Tk 3,836,557,382, the balance-sheet total [1 p.18] [1 p.8]. Notes 25 and 26 state there was no claim not acknowledged as debt and no contingent liability 'other than normal course of business' [1 p.32]. Gratuity provision was Tk 12.6m at end-2025, not set by actuarial valuation according to the auditor [1 p.27] [1 p.4]. The 2025 notes state no WPPF provision was made, citing a Ministry of Finance letter of 14 February 2017 and industry practice [1 p.24].

2026 so far: nine-month profit after tax Tk 94.9m against Tk 77.0m; Q3 EPS Tk 0.76

Nine months to September 2026. Net premium was Tk 309.2m against Tk 291.9m, reinsurance commission Tk 34.7m against Tk 21.3m, and income from investment and other sources Tk 79.0m against Tk 71.0m [7 p.2]. Net claims were Tk 85.5m against Tk 68.6m and management expenses Tk 183.0m against Tk 160.1m [7 p.2]. Agent commission was Tk 33.3m against Tk 52.4m; the July-September 2026 column shows nil against Tk 17.0m a year earlier [7 p.2]. Pre-tax profit was Tk 124.9m and profit after tax Tk 94.9m (EPS Tk 1.79), against Tk 104.6m and Tk 77.0m (EPS Tk 1.45) [7 p.2]. Gross premium was Tk 478.8m against Tk 423.1m, and premium ceded Tk 169.6m against Tk 131.2m [7 p.12].

Commission. Central booked agent commission of Tk 33.3m for January-September 2026 and nil for July-September [7 p.2]. Separately, The Business Standard reported on 24 December 2025 that IDRA had suspended 'all individual agent licences' of non-life insurers 'with effect from 1 January 2026' [13]. Central's filings do not refer to the circular and do not link it to the commission line [7 p.2]. The nine-month agent commission of Tk 33,274,092 is the same figure as the 'Agent Balance' in sundry debtors at end-2025 [7 p.2] [1 p.30].

Quarterly EPS (DSE). DSE posts give EPS of Tk 0.48 for January-March 2026 (Tk 0.43 a year earlier), Tk 0.55 for April-June 2026 and Tk 0.76 for July-September 2026 (Tk 0.52) [12]. For April-June 2025 the 26-Jul-2026 post prints Tk 0.50, while the 27-Jul-2025 post printed Tk 0.49 [12]. NAV per share was Tk 51.43 at 30-Sep-2026 with revaluation and Tk 21.40 without it [7 p.12]. The nine-month net operating cash flow of Tk 179.3m (NOCFPS Tk 3.37) compares with Tk 49.4m (Tk 0.93) [7 p.13].

Other nine-month items. Unexpired-risk reserve adjustment added Tk 3.8m in January-September 2026 and deducted Tk 12.6m in July-September [7 p.2]. The interim report counts 413 employees and states 'There was no capital expenditure commitment as at September 30, 2026' [7 p.13]. The board approved the interim statements on October 07, 2026 [7 p.14], and DSE posted the results on 8-Oct-2026 [12].

Governance: sponsors 39.33%; chairman changed on 1-Jul-2026; IDRA-appointed CEO

Ownership. At 31-Dec-2025 sponsors and directors held 20,901,441 shares (39.33%), ICB and institutions 10.82% and the general public 49.85% [1 p.26]. At 30-Sep-2026 the interim note shows sponsors and directors at 20,901,544 shares (39.33%), institutions 15.85% and the general public 44.82% [7 p.12].

Board. The audited statements for 2024 and 2025 and the 2026 interim report in the corpus do not print a list of directors or an audit-committee list, so no complete board list is given here. The 2025 statements are signed by Md. Nakibur Rahman Khan (Chief Executive Officer), Mohammed Masud Hossain (Chairman), Mohammed Masud Karim (Vice Chairman) and Abu Mohammad (Director) [1 p.8]. The 30-Sep-2026 statements are signed by Md. Nakibur Rahman Khan (Chief Executive Officer), Shabbir Ul Kabir (Vice Chairman), Mohammed Masud Karim (Chairman), Md. Abul Hasanat (Chief Financial Officer) and Md. Noor-Ul-Alam FCS, LL.B (Company Secretary) [7 p.2]. DSE posts record the election of Mohammed Masud Hossain as chairman (posted 26-Jan-2025) and of Mohammed Masud Karim as chairman with effect from July 01, 2026 (board meeting of June 30, 2026) [12]. Other directors named in DSE posts are Dr. Jahanara Arzu, Md. Nurul Islam and Rizwana Afroze Binte Kalam [12].

Management. DSE posted on 4-Mar-2026 that IDRA 'has appointed Mr. Md. Nakibur Rahman Khan as the Chief Executive Officer (CEO) of the company' [12]. Note 38 of the 2025 statements lists six key management personnel, with the CEO 'Joining as on 01.02.2026' [1 p.33]. The 2024 statements were signed for the CEO by Khosru Dostagir Alam [2 p.10].

Related parties. Note 37 lists seven related parties for 2025 [1 p.33]. Central Insurance Investment Ltd. ('Subsidiaries', 'Intercompany') has an opening and closing balance of Tk 99,245,000. Six groups described as 'Common Director' paid insurance premium during the year: Madina Group Tk 157,167; T.K. Group Tk 4,776,308; A.S Trading Co. Tk 2,878,609; KSRM Group Tk 373,446; Royal Group Tk 8,177,905; and Muhuri Shipping Ltd. Tk 6,952,000 [1 p.33]. Royal Group is the largest of the six rows; together they total Tk 23.3m, 3.9% of 2025 gross premium (our arithmetic) [16]. The note states the transactions 'are not significantly different from those that could have been obtained from their parties' [1 p.33]. The 30-Sep-2026 note lists only Central Insurance Investment Ltd. [7 p.14].

Director share moves and other notices. Dr. Jahanara Arzu declared on 13-May-2025 an intention to buy 2,00,000 shares and DSE posted completion on 8-Jul-2025 [12]. On 28-Oct-2025 DSE posted that Md. Nurul Islam would gift 1,065,144 shares to his son Saiful Islam Ricon and that Rizwana Afroze Binte Kalam would receive 87,072 shares from her mother Khaleda Begum [12]. The 24-month DSE archive (1-Nov-2024 to 1-Nov-2026) shows no board approval of capital expenditure, expansion, a rights issue or an acquisition [12].

Dividends and the 2025 cycle. The board recommended a 12% cash dividend for 2025 at its 268th meeting on April 16, 2026 [1 p.34]. DSE posted the declaration on 19-Apr-2026 with a record date of 20.05.2026 and an AGM on 18.06.2026 on a digital platform, and posted the disbursement on 28-Jul-2026 [12]. For 2024 the 12% dividend was posted on 28-Apr-2025 (record date 25.05.2025, AGM 25.06.2025) and the disbursement on 3-Aug-2025 [12]. NCR assigned an initial 'AAA' / 'ST-1' rating with stable outlook (posted 21-Aug-2025) and a surveillance 'AAA' / 'ST-1' with developing outlook on the 2025 accounts (posted 23-Aug-2026) [12].

What's next: dated events after 31-Oct-2026

These are dated events after 31-Oct-2026. We do not forecast numbers. Dates marked '(inferred)' come from precedent board-meeting and announcement dates; no date has been notified for them. The nine-month 2026 accounts were approved on October 07, 2026 and are not overdue against precedent (Q3 2025 board meeting 14-Oct-2025) [7 p.14] [12]. 'Line it moves' is 'None disclosed' where no filing or article links the event to a line.

Passed events. The 2025 AGM was scheduled for 18-Jun-2026 (passed); DSE posted the 2025 dividend disbursement on 28-Jul-2026 [12]. The chairman change took effect on 1-Jul-2026 (passed) [12].

Items with no date in the filings. The 2025 statements give no date for the Central Insurance Investment Ltd. merchant-bank licence, for consolidation of the subsidiary, for recovery of the Sommilito Islami Bank deposits, or for reconciliation of the SBC balances [1 p.19] [1 p.34] [1 p.4] [1 p.3]. On IFRS 17 the notes state that IDRA 'would prepare an action plan to implement this standard' and that the Bangladesh Insurance Association wrote to IDRA on January 5, 2023 seeking an extension [1 p.21].

LDC graduation. The Daily Star and The Business Standard reported on 30-Oct-2026 that the UN General Assembly adopted the move of Bangladesh's graduation from least-developed-country status to 24-Nov-2029 [14] [15]. Central's 2025 statements do not quantify any effect on its lines.

Risks: each item, the line it relates to and the evidence

Audit. The adverse opinion covers the statements as a whole [1 p.3]. The auditor's legal report says proper books 'were not kept by the Company so far as it appeared from our examinations of those books' [1 p.7]. Each reported figure in this note is taken as printed by the company; none has been adjusted for the auditor's findings.

Underwriting. The combined ratio on the house definition rose from 56.3% in 2021 to 79.8% in 2025, and the loss ratio from 11.7% to 23.5% [16]. In the nine months to September 2026 the loss ratio was 27.7% against 23.5% a year earlier (derived) [16].

Receivables and deposits. Due-from balances with other insurers were 54.3% of 2025 gross premium [16]. The 2025 report does not age these balances [1 p.30]. The auditor states that in most cases banks did not respond to confirmation letters [1 p.4].

Sensitivity (history only). In 2025 each 1 percentage point of loss ratio on net premium of Tk 415.7m equalled Tk 4.2m of net claims, against underwriting profit of Tk 74.6m (our arithmetic) [16].

History 2020-2025, filing inconsistencies and market data

Figures for each year come from that year's statements, with 2023 taken from the comparative columns of the 2024 statements [6 p.11] [4 p.11] [4 p.12] [2 p.13] [1 p.11] [6 p.9] [6 p.10] [4 p.9] [4 p.10] [2 p.11] [1 p.9]. 2020 figures are before the revaluation booked in 2021, and 2020 EPS and NAV per share are on 49,437,045 shares before the 7.5% stock dividend [6 p.36]. The 2021 statements print 2020 NOCFPS as Tk 2.93 against Tk 3.15 in the 2020 statements, on a different share count [5 p.39] [6 p.22].

Market data (facts only). The shares closed at Tk 43.0 on 29-Oct-2026, 8.9% above the Tk 39.5 close on 30-Oct-2025 [11] [16]. On DSE trading-day closes from 30-Oct-2025 to 29-Oct-2026 the range was Tk 31.4 (12-Nov-2025) to Tk 49.3 (4-Aug-2026) [11]. Market value at Tk 43.0 was Tk 2.29bn [16]. That is 23.0 times 2025 EPS, 19.5 times trailing EPS to September 2026 (derived: Tk 2.21), 0.84 times NAV per share with revaluation and 2.01 times NAV per share without revaluation at 30-Sep-2026, and a 2.8% yield on the 2025 dividend [16].

FAQ

What did the auditor say about Central Insurance's 2025 accounts?

Mahfel Huq & Co. gave an adverse opinion, stating the statements 'do not present fairly the financial position of the company as at 31 December 2025'. The basis includes a Tk 59.6m unexplained gap between premium per Form-XL and per VAT returns, unreconciled balances with other insurers, an unconsolidated subsidiary and missing bank reconciliations.

How profitable was Central Insurance in 2025?

Profit after tax was Tk 99.5m (EPS Tk 1.87) against Tk 98.2m (EPS Tk 1.85) in 2024. Underwriting profit was Tk 74.6m and interest, rent and dividends Tk 105.5m. Return on average printed equity was 3.7%.

What is Central Insurance's combined ratio?

79.8% in 2025 and 77.8% in 2024, measured as net claims plus revenue-account management expenses plus agency commission less reinsurance commission, over net premium. On the same definition Karnaphuli was 82.2%, Nitol 72.7% and Peoples 63.7% in 2025.

Why is Central Insurance's NAV per share so much higher than its NAV without revaluation?

Land and buildings were revalued in 2021 on a 2020 valuation by Fames & R. The revaluation reserve was Tk 1,508.6m at end-2025, so NAV per share was Tk 50.69 with revaluation and Tk 20.63 without it.

What dividend did Central Insurance pay for 2025?

12% cash, Tk 1.20 a share, recommended on 16-Apr-2026 with a record date of 20-May-2026. DSE posted the disbursement on 28-Jul-2026. The company also paid 12% for 2023 and 2024.

Who are Central Insurance's related parties?

Note 37 names the subsidiary Central Insurance Investment Ltd. (intercompany balance Tk 99,245,000) and six common-director groups that paid premium in 2025: Madina Group, T.K. Group, A.S Trading Co., KSRM Group, Royal Group and Muhuri Shipping Ltd., together Tk 23.3m.

How did Central Insurance do in the first nine months of 2026?

Profit after tax was Tk 94.9m (EPS Tk 1.79) against Tk 77.0m (EPS Tk 1.45). Net premium was Tk 309.2m, net claims Tk 85.5m and agent commission Tk 33.3m, with none in July-September. NAV per share was Tk 51.43 at 30-Sep-2026.

Sources

1. Central Insurance PLC audited financial statements for 2025, with the independent auditor's report (corpus CENTRALINS_ANNUAL_2025; PDF page numbers) · link · accessed 2026-11-01
2. Central Insurance Company Ltd. audited financial statements for 2024 (CENTRALINS_ANNUAL_2024) · link · accessed 2026-11-01
3. Central Insurance Company Limited Annual Report 2023, financial statements section (CENTRALINS_ANNUAL_2023) · link · accessed 2026-11-01
4. Central Insurance Company Limited Annual Report 2022, financial statements section (CENTRALINS_ANNUAL_2022) · link · accessed 2026-11-01
5. Central Insurance Company Limited Annual Report 2021, financial statements section (CENTRALINS_ANNUAL_2021) · link · accessed 2026-11-01
6. Central Insurance Company Limited audited financial statements for 2020 (CENTRALINS_ANNUAL_2020) · link · accessed 2026-11-01
7. Central Insurance PLC un-audited financial statements for the nine months to 30-Sep-2026 (CENTRALINS_QUARTERLY_Q3_2026) · link · accessed 2026-11-01
8. Karnaphuli Insurance PLC Annual Report 2025 (peer; auditor's report p.148, note 26 class summary p.181) · link · accessed 2026-11-01
9. Nitol Insurance PLC Annual Report 2025 (peer; auditor's report p.181, P&L p.187, consolidated revenue account p.189) · link · accessed 2026-11-01
10. Peoples Insurance PLC Annual Report 2025 (peer; auditor's report p.256, P&L p.263, consolidated revenue account p.264) · link · accessed 2026-11-01
11. AnalystBro market data: DSE daily bars for CENTRALINS to 29-Oct-2026 (chart_bars) · link · accessed 2026-11-01
12. DSE news archive for CENTRALINS, 1-Nov-2024 to 1-Nov-2026 (old_news.php, criteria=3): results, dividends, record dates, board-meeting notices, auditor-opinion notices, NCR ratings, director share transfers, chairman elections, CEO appointment, name change · link · accessed 2026-11-01
13. The Business Standard, 'IDRA scraps commission payments in non-life insurance sector', 24 Dec 2025 · link · accessed 2026-11-01
14. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation', 30 Oct 2026 · link · accessed 2026-11-01
15. The Business Standard, 'Bangladesh gets 3 more years for LDC graduation', 30 Oct 2026 · link · accessed 2026-11-01
16. AnalystBro history and ratio model for CENTRALINS (model.xlsx, the workbook below) · link · accessed 2026-11-01