Nitol Insurance financial analysis: combined ratio 72.7% and Tk 121m SBC payable gap flagged by auditor (Oct 2026)

A Tk 705m-premium general insurer: 2025 profit up 3.2%, a 72.7% combined ratio and three auditor emphasis paragraphs

What it is. Nitol Insurance PLC (DSE: NITOLINS) is a Dhaka-based general insurer incorporated on 4 October 1999 and listed on the Dhaka Stock Exchange on 29 November 2005 [1 p.197]. It writes fire, marine, motor and miscellaneous cover through 26 branches [1 p.197]. In 2025 it wrote Tk 705.15m of gross premium and kept Tk 400.24m, 56.8%, after reinsurance [1 p.216] [15]. The board of nine directors holds 33% of the shares, general public 39.99% and institutions 27.01% [1 p.30]. The company changed its name from Nitol Insurance Company Limited to Nitol Insurance PLC with effect from 11 December 2025 [11].

Where it stands. Gross premium rose 11.5% in 2025 to Tk 705.15m, and net premium 4.9% to Tk 400.24m [1 p.71] [15]. Underwriting profit rose 8.0% to Tk 103.40m and profit after tax 3.2% to Tk 81.52m, giving EPS of Tk 1.93 against a restated Tk 1.87 [1 p.187] [1 p.212]. Profit after tax is 37.1% below the 2019 level of Tk 129.54m, and return on average equity was 6.3% in 2025 against 13.0% in 2018 [4 p.37] [1 p.71] [15]. In the first nine months of 2026 the company reported EPS of Tk 1.36 against a restated Tk 1.01 [11]. The shares closed at Tk 58.5 on 29-Oct-2026, against Tk 27.4 a year earlier [10].

What drives shareholder returns. Nitol earns from two sources. Underwriting profit was Tk 103.40m in 2025, and investment and other income Tk 37.27m, which is 33.0% of pre-tax profit [1 p.187] [15]. The underwriting result depends on three lines: net claims (21.6% of net premium in 2025), the cost of distribution and running the business (agent commission plus management expenses, 40.6% of gross premium) and reinsurance commission earned back (Tk 81.85m) [15]. Equity of Tk 1,321.28m is 3.3 times net premium [15]. Property, plant and equipment was Tk 768.54m at end-2025 [1 p.186], and office space rent income was Tk 1.04m in 2025 [1 p.187]. Cash goes to shareholders mainly as cash dividends; the 2024 dividend also carried a 5% stock element [11].

• Does the amount due from SBC reconcile with SBC's own figures? Signpost: note 10 and note 20 and the auditor's report in the FY2026 annual report (board meeting inferred for Mar-May 2027; no date notified).
• Is the H1 2026 fall in agent commission (Tk 1.17m against Tk 43.63m) carried through the year? Signpost: the full-year revenue account in the FY2026 annual report.
• Does gross premium recover from the 21.0% fall in H1 2026? Signpost: the FY2026 Form XL and class revenue accounts.
• Is the Chattogram office-space sale completed? Signpost: a DSE disclosure; the company gives January 2027 as expected completion.
• Is the gratuity fund funded? Signpost: note 11 and the auditor's report in the FY2026 annual report.

Fire is 39% of premium, marine 33% and motor 19%; Nitol keeps 57% of what it writes

How it makes money. A Bangladeshi general insurer collects premium, cedes part of each risk to reinsurers who pay back a commission, sets aside a reserve for unexpired risk, and pays claims, agent commission and management expenses from the rest. Nitol reserves 40% of net premium for unexpired risks on fire, motor, miscellaneous and marine cargo, and 100% on marine hull [1 p.189] [1 p.191]. The four class revenue accounts sum to underwriting profit; interest, dividends, rent and other income, less expenses not charged to any class and tax, give the bottom line [1 p.187]. Each year 10% of each class's net premium is set aside to a reserve for exceptional losses (Tk 40.02m in 2025) [1 p.211].

Classes. Fire brought Tk 276.79m of gross premium in 2025, up 10.3%, marine Tk 233.03m, up 12.0%, motor Tk 135.85m, up 21.4%, and miscellaneous Tk 59.48m, down 3.0% [1 p.88] [15]. The directors write that the increase in gross premium 'is depending on new business from the private sector and small growth of net premium caused by low retention of larger risks' [1 p.87]. Private-sector business was Tk 596.54m of gross premium and public-sector business Tk 108.61m, 15.4% [1 p.216] [15].

Fire. Fire is the largest class by gross premium but the smallest of the three main classes by net premium. Nitol kept 30.0% of fire premium in 2025 against 45.8% in 2024, so net fire premium fell 27.8% to Tk 82.98m while gross fire premium rose [15]. Net fire claims rose to Tk 46.26m from Tk 31.04m and fire management expenses stayed at Tk 81.04m, and the fire revenue account showed a loss of Tk 8,223,993 against a profit of Tk 10,120,273 in 2024 [1 p.190]. On the combined-ratio definition used in this note, fire ran at 125.3% of net premium in 2025 [15].

Marine and motor. Marine was the largest contributor to underwriting profit at Tk 81.32m, up from Tk 56.60m [1 p.191]. Net marine claims were Tk 1.83m against Tk 21.12m in 2024; within that, marine claims paid during the year were negative Tk 940,988, a net recovery [1 p.191]. Marine retention was 72.8% [15]. Motor is almost fully retained (98.7%), carried net claims of Tk 37.92m, 28.3% of net premium, and contributed Tk 23.22m [1 p.192] [15]. Miscellaneous (Tk 59.48m gross) is mostly ceded, with 22.8% retained [15].

Reinsurance. Nitol ceded Tk 304.91m of premium in 2025, 43.2% of gross premium [1 p.216] [15]. Of the ceded premium, Tk 99.10m related to public-sector business [1 p.216]. It earned Tk 60.99m of commission on reinsurance ceded and Tk 20.87m of profit commission [1 p.189]. At end-2025 it owed Tk 31.78m to SBC and Tk 102.14m to foreign reinsurers and brokers, of which Tk 65.22m to J.B.Boda Insurance & Reinsurance Brokers Pvt. Ltd. [1 p.207] [1 p.208]. It was owed Tk 461.61m by SBC [1 p.211].

Combined ratio 72.7% in 2025: claims 21.6% of net premium, net expenses 51.1%

Definition used in this note. We use one definition for Nitol and every peer: combined ratio = (net claims incurred + management expenses charged to the revenue account + agent commission - reinsurance commission earned, including profit commission) / net premium. Stamp costs and expenses charged outside the revenue account are excluded. For 2024 and 2025 the reinsurance commission is printed in the revenue account [1 p.189]. For 2018-2023 the earlier revenue accounts in our corpus print the debit side in text; we derive the commission as the account total less the opening unexpired-risk reserve less net premium, a method that reproduces the printed 2024 figure (Tk 83.96m) exactly [5 p.104] [3 p.104] [2 p.108] [1 p.189] [15]. The 2018-2023 combined ratios are therefore labelled derived.

The combined ratio across the series. On this definition the ratio was 76.8% in 2018, 77.0% in 2019, 82.1% in 2020, 76.7% in 2021, 77.3% in 2022, 78.5% in 2023, 72.5% in 2024 and 72.7% in 2025 [15]. The highest in the 2018-2025 series is 2020 (82.1%) and the lowest is 2024 (72.5%); 2025 is 0.2pp above the 2024 low [15]. The mix inside the ratio changed: claims fell from 41.9% of net premium in 2018 to 21.6% in 2025, while expenses net of reinsurance commission rose from 35.0% to 51.1% [15].

Claims. Net claims incurred were Tk 86.46m in 2025, against Tk 89.26m in 2024 and Tk 242.28m in 2017 [5 p.104] [3 p.104] [2 p.108] [1 p.189]. As a share of net premium the ratio was 44.5% in 2017, the highest in the 2017-2025 series, and 21.6% in 2025, the lowest [15]. The five-year highlights table labels its claims line 'Claim Paid'; for 2025 that line (Tk 77.42m) equals claims paid during the year, while the 2016-2023 figures in the highlights equal claims incurred in the revenue accounts [1 p.71] [4 p.37] [5 p.104] [3 p.104] [2 p.108] [1 p.189]. This note uses claims incurred throughout. Gross claims were Tk 104.38m in 2025, of which reinsurers bore Tk 26.96m [1 p.216].

Expenses. Management expenses charged to the revenue accounts were Tk 196.77m in 2025, up 2.8%, and agent commission Tk 89.44m, up 12.2% [1 p.189] [15]. Together they were 40.6% of gross premium in 2025, against 42.9% in 2024 and 31.7% in 2017 [15]. Between 2017 and 2025 management expenses rose 64.8% while gross premium rose 4.9% [15]. A further Tk 27.70m of expenses (depreciation Tk 20.76m, advertisement, subscriptions and donations, fees) sits in the profit or loss account outside the revenue accounts [1 p.187]. Agent commission was Tk 35.17m in 2021 and Tk 77.20m in 2022, as printed in the revenue accounts [2 p.108].

Underwriting margin. Underwriting profit was 25.8% of net premium in 2025 and 25.1% in 2024 [15]. In the 2016-2025 series it ranged from 17.2% (2016) to 36.7% (2021) [15]. In money terms, underwriting profit was Tk 103.40m in 2025 against a peak of Tk 135.71m in 2019 and a low of Tk 72.08m in 2023 [4 p.37] [1 p.71] [5 p.104] [3 p.104] [2 p.108] [1 p.189]. The 2017 figure is printed as Tk 107,358,303 in the 2019 revenue account and Tk 106,828,047 in the 2020 five-year table; the model uses the revenue account [5 p.104] [4 p.37].

Ten years of premium: gross premium in a Tk 602m-730m band, retention down from 80% to 57%

Gross premium. Gross premium has moved within a Tk 602m-730m band for a decade: Tk 613.87m in 2016, a high of Tk 730.37m in 2019, a low of Tk 602.39m in 2021 and Tk 705.15m in 2025 [4 p.37] [1 p.71]. Growth was negative in 2020 (-6.5%), 2021 (-11.8%) and 2024 (-5.6%) [15]. The company's market summary describes 46 non-life insurers in Bangladesh and 'intense and unhealthy competition among the existing players' [1 p.87].

Retention. Nitol kept 80.0% of gross premium in 2016, 72.9% in 2019 and 56.8% in 2025 [15]. Reinsurance premium ceded rose from Tk 122.99m in 2016 to Tk 304.91m in 2025 [4 p.37] [1 p.71]. Net premium fell from a peak of Tk 564.79m in 2018 to Tk 347.50m in 2022, and was Tk 400.24m in 2025 [4 p.37] [1 p.71]. Reinsurance commission earned rose from Tk 44.95m (derived) in 2018 to Tk 81.85m in 2025 [15].

Investment income Tk 37.27m in 2025; deposits and bonds now 17% of assets, fixed assets 37%

Income. Non-operating income was Tk 37.27m in 2025 against Tk 38.98m in 2024 [1 p.187]. Interest received and accrued was Tk 33.18m: Tk 20.56m on FDRs, Tk 11.89m on treasury bonds and Tk 0.73m on short-term deposits [1 p.213]. Dividend and share income was Tk 1.22m, office-space rent Tk 1.04m and other income Tk 1.73m [1 p.187]. On our arithmetic, interest income was 8.4% of average FDR and treasury holdings (derived) [15]; the credit rating letter reproduced in the report gives an 'investment yield' of 9.44% for FY25 [1 p.82].

Where the assets sit. FDRs fell from Tk 286.00m to Tk 178.50m in 2025, while Bangladesh government treasury bonds rose from Tk 147.87m to Tk 175.50m [1 p.210]. Listed shares are small: Tk 3.84m at fair value, in CDBL, Modern Cement, BRAC Bank, City Bank, Grameenphone, Olympic Industries and Square Pharma [1 p.210]. FDR, treasury bond and other investments were 17.1% of total assets at end-2025 against 55.4% in 2019 [15]. Over the same years fixed assets plus advances for office space rose from Tk 378.15m to Tk 768.54m [4 p.37] [1 p.71].

Office space. The advance against office space (Tk 285.29m at end-2024) was transferred to property, plant and equipment in 2025; additions to cost were Tk 290.08m and property, plant and equipment reached Tk 768.54m [1 p.209] [1 p.210]. Depreciation in the profit or loss account was Tk 20.76m [1 p.187]. Office spaces at Skylark Point, Bijoynagar, Dhaka and Younusco City Centre, CDA Avenue, Chittagong were revalued on 20 August 2014, and the revaluation reserve stood at Tk 64,988,984 at end-2025 [1 p.207]. On 26-Oct-2026 the company told DSE it is proceeding with the proposed sale of 9,452 sq ft of office premises at Yunusco City Centre, 10th Floor, GEC More, Chittagong, at an indicative price of Tk 8.50 crore to G K Network, with status 'Sale agreement' and 'Expected Completion: January 2027' [11].

Deposits in merged banks. The auditor draws attention to FDRs of BDT 14,500,000 and cash of BDT 722,862 held with Social Islami Bank PLC, First Security Islami Bank PLC and Export Import Bank PLC, which merged into Sammilito Islami Bank PLC [1 p.181]. Together these are 1.2% of equity [15]. The FDR note states that 'there exists significant doubt regarding the recoverability of the aforesaid FDR balance' and that management 'is currently assessing the situation and taking necessary steps to safeguard and recover the said amounts' [1 p.210]. No provision against these balances is shown in the notes we read.

Unmodified opinion with three emphasis paragraphs: SBC balances, merged-bank deposits and an unfunded gratuity

The opinion. Mahfel Huq & Co., Chartered Accountants, signed an unmodified opinion: 'In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and its financial performance and its cash flows for the year that ended in accordance with International Financial Reporting Standards (IFRSs).' [1 p.181]. The paragraph that follows is headed, as printed, 'Emphasize of matter', and begins: 'Without qualifying our Opinion, we are drawing attention to the following important facts that have a significant bearing on the financial statements for the reporting period:' [1 p.181].

Emphasis 1, merged banks. 'We draw attention to Note 16 and Note 22 regarding Fixed Deposit Receipts (FDRs) totaling BDT 14,500,000 and Cash & Cash Equivalents of BDT 722,862. These funds are held with Social Islami Bank PLC, First Security Islami Bank PLC and Export Import Bank PLC which have subsequently merged into Sammilito Islami Bank PLC. As stated in the notes, persisting ambiguity regarding the financial status and recovery process following the merger, there exist obscurity over recoverability of the aforementioned FDR and Cash and Cash Equivalents balances. Our opinion is not modified in respect of this matter.' [1 p.181]

Emphasis 2, SBC. 'In reference to Note 10.00 to the financial statements, amount due to Sadharan Bima Corporation of BDT 31,780,414. However, as per confirmation received from Sadharan Bima Corporation the due is BDT 152,477,358 leading to a difference of BDT 120,696,944.' It continues: 'In reference to Note 20.00 to the financial statements, amount due from Sadharan Bima Corporation of BDT 461,609,939. However, we did not receive any confirmation from Sadharan Bima Corporation regarding this receivable amount.' and 'Additionally, we have obtained a reconciliation regarding the net amount of receivable and payable difference. Our opinion is not modified in respect of this matter.' [1 p.181]. The Tk 120.70m difference equals 9.1% of equity and 1.48 times 2025 profit after tax (derived) [15].

Emphasis 3, gratuity. 'We draw attention to Note 11 which includes Provision for Gratuity in the financial statements as a carryforward balance.' [1 p.181] and 'The Company's obligation for gratuity provision has not been maintained on a regular basis, and the gratuity fund remains unfunded. This practice does not comply with the applicable laws, regulations, and relevant financial reporting standards. Our opinion is not modified in respect of this matter.' [1 p.182]. Note 11 shows a gratuity provision of Tk 8,036,506 at both end-2025 and end-2024 [1 p.208]. DSE carried an 'Emphasis of Matter' notice for the company on 2-Jun-2026 [11].

Key audit matters. The auditor lists two. Premium Income: 'Premium income is the most financially significant item in the statement of profit and loss account & profit and loss appropriation account. The company has reported Net premium income of BDT 400,236,545 for the year ended December 31, 2025.' and '... due to the significance of the balance to the financial statements as a whole, we regard this as a key audit matter.' Investment: 'The classification and measurement of investment in securities required judgment and complex estimates. ... At the end of the year, the company reported investment of (Bangladesh Govt. Treasury Bond & Investment in Shares) BDT 179,110,607 (i.e. 2024: BDT. 151,604,953).' [1 p.182]. The statement of financial position shows investment of Tk 179,340,439, Tk 229,832 more than the KAM figure [1 p.186].

Form AA ties to the balance sheet. The classified summary of assets (Form 'AA') lists the same lines and amounts as the statement of financial position: property, plant and equipment Tk 768,544,342, investment Tk 179,340,439, FDR Tk 178,500,000, inventories Tk 2,600,160, interest receivable Tk 8,086,563, amount due from other insurers Tk 461,609,939, sundry debtors Tk 454,437,255 and cash Tk 37,011,473, totalling Tk 2,090,130,171 in both [1 p.196] [1 p.186]. The 2024 column also ties at Tk 1,930,755,285. The certificate on Form AA states the assets are set forth 'at amounts not exceeding their realizable market value', except shares in listed companies [1 p.196].

Tax and other balances. Advance income tax was Tk 428.79m against a tax provision of Tk 343.93m at end-2025, a difference of Tk 84.86m [1 p.211] [1 p.208] [15]. The current tax charge was Tk 27.84m at 37.5% on taxable income, plus Tk 3.61m deferred tax [1 p.209]. The company states there was no contingent liability and no claim not acknowledged at 31 December 2025 [1 p.212]. Outstanding claims rose from Tk 17.92m to Tk 26.95m [1 p.207].

Cash conversion. Net cash from operating activities was Tk 11.77m in 2025 and Tk 8.84m in 2024, 0.14 and 0.11 times profit after tax [1 p.195] [15]. In the indirect reconciliation, the change in amounts due to and from other insurers and in the premium deposit and fund balances was an outflow of Tk 104.35m in 2025 [1 p.213]. Investing activities brought in Tk 19.01m, including Tk 107.50m from FDRs, less Tk 91.07m of advances and prepayments and Tk 27.02m into treasury bonds [1 p.195]. Net operating cash flow per share was Tk 4.05 in 2016 and Tk 0.28 in 2025 [4 p.37] [1 p.71].

Solvency. The report states: 'Available solvency margin of Nitol Insurance PLC is BDT 47.18 Crore against Required solvency margin BDT 18.12 Crore and Solvency ratio is 2.60 times.' [1 p.75]. The table on the same page prints the available solvency margin as Tk 47.08 crore, from assets after adjustment of Tk 198.09 crore, total liabilities of Tk 18.82 crore and other shareholders' liabilities printed as '13.2.19' [1 p.75]. Tk 47.08 crore divided by Tk 18.12 crore is 2.60 times; Tk 47.18 crore gives 2.60 times as well [15].

2026 so far: H1 gross premium down 21.0%, agent commission Tk 1.17m, nine-month EPS Tk 1.36

H1 2026. Gross premium was Tk 280.65m in the six months to June 2026, 21.0% below the Tk 355.20m of H1 2025 [6 p.2] [15]. Net premium (gross less reinsurance) fell 22.2% to Tk 151.66m, and reinsurance commission fell 57.9% to Tk 21.99m [6 p.2] [15]. Agent commission was Tk 1.17m against Tk 43.63m, management expenses Tk 109.56m against Tk 116.60m, and net claims Tk 59.36m against Tk 77.73m [6 p.4]. Profit before tax was Tk 48.40m against Tk 34.57m in the statement of comprehensive income [6 p.4]; the comparative table on p.2 prints Tk 48.08m and Tk 34.54m [6 p.2]. Total comprehensive income was Tk 33.16m against Tk 28.56m, and EPS Tk 0.79 against Tk 0.68 restated [6 p.4].

Quarterly EPS. DSE announcements give EPS of Tk 0.31 for Q1 2026 against Tk 0.37 restated, Tk 0.48 for Q2 against Tk 0.31 restated and Tk 0.57 for Q3 against Tk 0.34 restated; nine-month EPS was Tk 1.36 against Tk 1.01 [11]. Q1 2026 profit was lower than Q1 2025 and still a profit. Every quarter of 2025 and 2026 announced on DSE shows a positive EPS [11], and the 2025 quarterly table in the annual report shows positive profit after tax in all four quarters [1 p.72]. NAV per share was Tk 31.66 at 30-Sep-2026 and nine-month operating cash flow per share Tk 0.61 [11]. The Q3 2026 accounts are not in our corpus, so the nine-month figures cannot be split by line.

Balance sheet at June 2026. Total assets were Tk 2,111.69m and net assets Tk 1,354.44m (NAV per share Tk 32.08) [6 p.3]. Sundry debtors were Tk 500.62m against Tk 472.73m at December on the interim presentation, outstanding claims Tk 18.46m and the tax provision Tk 356.07m [6 p.3]. The interim does not split the amount due from SBC.

Regulation: IDRA's December 2025 circular on commission, solvency rules and the LDC date

Commission. The Business Standard reported on 24-Dec-2025 that the Insurance Development and Regulatory Authority (IDRA) 'scrapped the scope for paying commissions in the non-life insurance sector' and suspended 'all individual agent licences' of non-life insurers 'with effect from 1 January 2026', by a circular issued on 23 December [12]. This is a single-outlet report.

Solvency. The company computes the required solvency margin as the 'higher of RSM-1 or RSM-2' and printed a solvency ratio of 2.60 times for 2025 [1 p.75]. The report describes IDRA's 'risk-based capital framework' as requiring insurers 'to take corrective measures if their solvency margin falls below the prescribed threshold' [1 p.75].

Reserves and tax. The reserve for exceptional losses (10% of premium) is allowed as an expense for tax under paragraph 6 of the 4th Schedule of the Income Tax Act 2023 [1 p.211]. The tax note applies 37.50% to taxable income and 20% to dividends [1 p.209].

LDC graduation. The UN General Assembly adopted Bangladesh's move of its LDC graduation date from 24-Nov-2026 to 24-Nov-2029 on 29-Oct-2026 in New York (30-Oct in Dhaka) [13] [14].

Credit ratings. Credit Rating Information and Services Limited (CRISL) rated the company 'AA+' with a stable outlook in announcements posted on 18-Nov-2024 and 18-Nov-2025 [11]. ARGUS Credit Rating Services Limited assigned a claim-paying-ability rating of 'AAA' long term and 'ST-1' short term with a stable outlook, posted on DSE on 7-Jun-2026 [11]. The ARGUS letter dated 04 Jun 2026 gives the nature of rating as 'Initial' and a validity to 04 Jun 2027, and notes that 'the liquidity indicators are facing pressure due to macro incidents and management strategic investment steps' [1 p.82].

Board, ownership, related parties and dividends as printed

Board and ownership. The pattern of shareholding lists nine directors with the positions shown above and gives the board's total holding as 33%, public individuals 39.99% and institutions 27.01% [1 p.30]. It reports no parent, subsidiary or associate, no holder of 10% or more, and no shares held by the chief executive, chief financial officer, company secretary or head of internal audit [1 p.30]. The board met four times in 2025 [1 p.89]. The directors' report states that 'in place of two vacant posts of Directors, No General Shareholder has offered their candidature', and that no public subscriber applied for election as a public shareholder director [1 p.89]. The chief executive officer is S M Mahbubul Karim [1 p.186].

Related parties. Note 37 lists, as printed: Mrs. Naeema Hoque, relationship 'Key Management', insurance, opening and closing balance Tk 19,818 [1 p.214]; house loans to Mr. Md. Altaf Hossain (Key Management), closing Tk 3,749,645, and Mr. Abu Ahmed Suman (Key Management), opening Tk 6,907,489, addition Tk 331,730, adjustment Tk 556,356, closing Tk 6,682,863 [1 p.215]; and car loans to Mr. Md. Haditul Islam, closing Tk 713,146, Mr. Md. Mijanur Rahman, closing Tk 2,451,740, Mr. Md. Shahanur Rahman, closing Tk 1,731,731, and Mr. Abu Ahmed Suman, closing Tk 1,312,360, each listed as 'Key Management' [1 p.215]. The note states that transactions are 'conducted in an arm's length basis at commercial rates' [1 p.214]. Ms. Naeema Hoque appears as a Director in the pattern of shareholding [1 p.30].

Dividends. The ten-year record lists total dividends of 13% for 2016, 14% for 2017, 15% for 2018 and 2019, 10% for 2020, 12.5% for 2021, 11% for 2022, 10.5% for 2023 and 10% for 2024 [1 p.78]. For 2024 the 10% was 5% cash and 5% stock [11]. For 2025 the board recommended a 10% cash dividend at its 181st meeting on 31-Mar-2026 [1 p.215]; the record date was 10-May-2026, the AGM was scheduled for 12-Jul-2026 on a digital platform, and the company reported disbursing the cash dividend on 16-Aug-2026 [11]. At Tk 1.00 a share on 42,218,020 shares, the 2025 cash dividend is Tk 42.22m, 51.8% of profit after tax (derived) [15]. Unclaimed dividend was Tk 4,008,598 at end-2025 [1 p.209].

News over 24 months. The DSE news archive from November 2024 to October 2026 contains quarterly and annual results, dividend notices, record-date notices, credit-rating results, the name change, the emphasis-of-matter notice and the proposed office-space sale [11]. It contains no board approval of new capital expenditure or expansion in that period [11], and the 2025 accounts state there was no unprovided capital-expenditure commitment at 31 December 2025 [1 p.212].

Ratios 2016-2025: ROE 6.3% in 2025, between 4.9% (2023) and 13.0% (2018)

Returns. Return on average equity was 12.2% in 2017, 13.0% in 2018 (the highest in the series), 12.9% in 2019, 10.7% in 2020, 10.4% in 2021, 7.2% in 2022, 4.9% in 2023 (the lowest), 6.4% in 2024 and 6.3% in 2025 [15]. Equity grew from Tk 754.80m in 2016 to Tk 1,321.28m in 2025 while profit after tax moved between Tk 59.40m and Tk 129.54m [4 p.37] [1 p.71]. Return on average assets was 4.1% in 2025 [15].

Capital and leverage. Equity was 63.2% of total assets at end-2025 and between 58.3% and 66.4% across 2016-2025 [15]. Net premium was 0.30 times equity in 2025, against 0.65 times in 2016 [15]. The statement of financial position shows no borrowings [1 p.186].

Profit mix and tax. Investment and other income was between 33.0% and 50.7% of pre-tax profit across 2016-2025, and 33.0% in 2025 [15]. The effective tax rate (tax provision over profit before tax) was 27.8% in 2025 [15].

Peers on one definition: combined ratio 72.7% at Nitol, 68.1% Pioneer, 53.1% Reliance, 74.9% City

Peer set and basis. We compare Nitol with Pioneer Insurance, Reliance Insurance and City Insurance for calendar 2025, using each company's own annual report, read on the pages cited, and one combined-ratio definition for all four. Each audit opinion was read first: Pioneer's auditor (ARTISAN) gave an unmodified opinion and proceeds directly to key audit matters [7 p.172]; Reliance's auditor gave an unmodified opinion with an emphasis of matter on 'the funding of the deficit in the Company's employees' fund' [8 p.356]; City's auditor gave an unmodified opinion followed by key audit matters on premium income [9 p.386]. City's revenue account also carries Tk 3.62m of insurance stamp expenses, which this definition excludes [9 p.394].

Underwriting. Among these four, Nitol's 72.7% combined ratio is 4.6pp above Pioneer's 68.1%, 19.5pp above Reliance's 53.1% and 2.2pp below City's 74.9% [15]. Claims ratios are close: 21.6% at Nitol, 19.4% at Pioneer, 22.2% at Reliance and 22.2% at City [15]. Management expenses plus agency commission were 40.6% of gross premium at Nitol, 31.2% at Pioneer, 17.8% at Reliance and 41.7% at City [15]. The companies print their own combined ratios on different definitions: Pioneer 'Combined Ratio' 68.07% [7 p.11], Reliance 'Combined ratio' 82.48% [8 p.87] and City 'Combined ratio' 71.32% [9 p.366]; we do not use the printed figures for comparison.

Scale and returns. Nitol is the smallest of the four by gross premium (Tk 705.15m, against Tk 938.64m at City, Tk 3,876.23m at Pioneer and Tk 5,410.38m at Reliance) [15]. Its return on year-end equity was 6.2%, against 9.7% at Pioneer, 10.7% at Reliance and 14.6% at City [15]. Reported solvency ratios were 2.60 at Nitol [1 p.75], 3.03 at Reliance (printed with a % unit; S.R.O. 313 basis) [8 p.87] and 3.42 at City [9 p.366]; we did not re-open Pioneer's solvency page for this note.

Multiples as facts. At Tk 58.5 Nitol traded at 30.3 times 2025 EPS and 1.87 times end-2025 NAV per share, with a 1.7% cash dividend yield [15]. Pioneer was at 14.3 times and 1.39 times, Reliance at 11.1 times and 1.19 times, and City at 38.4 times and 5.62 times [15]. Pioneer's cash DPS is its 25% cash dividend (Tk 2.50); its five-year table prints a 'Dividend per share' of Tk 3.00 that includes a 5% stock element [7 p.11]. These are statements of fact; we draw no conclusion from them.

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

Each row has a date after the note date and a source. We do not forecast numbers. Already-announced results (Q3 2026 on 26-Oct-2026) are in the text above.

Annual accounts timing. The board met on 12-May-2025 for the FY2024 audited accounts and on 31-Mar-2026 for FY2025 [11]. The FY2026 board date is inferred from these two precedents and labelled as such; no date has been notified [11]. The FY2026 accounts are the first full year after the IDRA circular reported by TBS on 24-Dec-2025 [12].

Office-space sale. The company described the transaction as subject to 'other applicable conditions' and said 'there can be no assurance that the proposed transaction will be completed on the terms currently under consideration' [11].

Risk map: SBC balances, retained claims, fixed-asset weight, merged-bank deposits and expense ratios

SBC. The largest balance-sheet item outside fixed assets is the Tk 461.61m due from SBC, 34.9% of equity, for which the auditor 'did not receive any confirmation', alongside a Tk 120.70m difference between the payable Nitol books and the figure SBC confirmed [1 p.181] [15]. The auditor obtained a reconciliation of the net difference [1 p.181]; the reconciliation itself is not printed.

Claims. Nitol retains almost all of its motor premium and 72.8% of marine [15]. Its claims ratio was between 21.6% and 29.7% of net premium in each year from 2022 to 2025, against 38.8%-44.5% in 2017-2021 [15]. Retained claims are charged to the revenue accounts net of reinsurance recoveries [1 p.189].

Capital use. Fixed assets are 36.8% of total assets [15], and depreciation of Tk 20.76m was 18.4% of 2025 pre-tax profit (derived) [1 p.187] [15]. The ARGUS letter refers to 'management strategic investment steps' alongside pressure on liquidity indicators [1 p.82].

• FY2026 annual report (board meeting inferred Mar-May 2027; no date notified): notes 10, 11, 16, 20 and the auditor's report.
• DSE disclosure on completion of the office-space sale (company's expected completion: January 2027).
• Q1 2027 accounts (inferred May-Jun 2027): premium and commission lines.

Ten-year history

Figures for 2016-2020 are from the 2020 annual report's financial highlights and for 2021-2025 from the 2025 report's five-year table [4 p.37] [1 p.71]. Claims, commission and expenses come from the consolidated revenue accounts [5 p.104] [3 p.104] [2 p.108] [1 p.189]. EPS is as printed in each table; the 2024 EPS is the restated Tk 1.87 (originally Tk 1.97) after the 5% bonus issue [1 p.212]. The 2025 highlights label the investment line 'FDR, BGTB & Other' and the 2020 table 'FDR & BGTB'.

FAQ

How much did Nitol Insurance earn in 2025?

Profit after tax was Tk 81.52m, up 3.2% from Tk 79.02m, and EPS was Tk 1.93 against a restated Tk 1.87. Underwriting profit was Tk 103.40m and investment and other income Tk 37.27m. Profit before tax was Tk 112.97m.

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

Mahfel Huq & Co. gave an unmodified opinion with three emphasis-of-matter paragraphs: deposits of BDT 14,500,000 and cash of BDT 722,862 with banks merged into Sammilito Islami Bank; a BDT 120,696,944 difference between the amount Nitol shows as due to Sadharan Bima Corporation and SBC's confirmation, and no confirmation of the BDT 461,609,939 due from SBC; and a gratuity provision carried forward with the fund unfunded.

What is Nitol Insurance's combined ratio?

72.7% in 2025 and 72.5% in 2024, on net claims incurred plus management expenses plus agent commission less reinsurance commission, over net premium. Across 2018-2025 the highest was 82.1% in 2020 and the lowest 72.5% in 2024; the 2018-2023 values use a derived reinsurance commission.

What dividend did Nitol Insurance pay for 2025?

A 10% cash dividend, Tk 1.00 a share, recommended on 31-Mar-2026 and reported disbursed on 16-Aug-2026. It equals 51.8% of 2025 profit after tax. For 2024 the dividend was 5% cash and 5% stock.

How did Nitol Insurance do in 2026 so far?

H1 2026 gross premium was Tk 280.65m, down 21.0%, and agent commission was Tk 1.17m against Tk 43.63m. Total comprehensive income was Tk 33.16m against Tk 28.56m. DSE announcements give nine-month EPS of Tk 1.36 against a restated Tk 1.01 and NAV per share of Tk 31.66 at 30-Sep-2026.

Is Nitol Insurance selling property?

On 26-Oct-2026 it told DSE it is proceeding with the proposed sale of 9,452 sq ft of office premises at Yunusco City Centre, GEC More, Chittagong, at an indicative Tk 8.50 crore to G K Network, with a sale agreement in place and an expected completion of January 2027, subject to conditions.

Sources

1. Nitol Insurance PLC Annual Report 2025 (corpus NITOLINS_ANNUAL_2025, PDF page numbers) · link · accessed 2026-10-31
2. Nitol Insurance Co. Ltd. Annual Report 2023 (consolidated revenue account 2021-2023, p.108) · link · accessed 2026-10-31
3. Nitol Insurance Co. Ltd. Annual Report 2021 (consolidated revenue account 2019-2021, p.104) · link · accessed 2026-10-31
4. Nitol Insurance Co. Ltd. Annual Report 2020 (financial highlights 2016-2020, p.37) · link · accessed 2026-10-31
5. Nitol Insurance Co. Ltd. Annual Report 2019 (consolidated revenue account 2017-2019, p.104) · link · accessed 2026-10-31
6. Nitol Insurance PLC un-audited half-year accounts to 30-Jun-2026 · link · accessed 2026-10-31
7. Pioneer Insurance PLC Annual Report 2025 (peer; five-year summary p.11, auditor's report p.172, revenue account p.181) · link · accessed 2026-10-31
8. Reliance Insurance PLC Annual Report 2025 (peer; summary of accounts p.86, five-year data p.87, auditor's report p.356) · link · accessed 2026-10-31
9. City Insurance PLC Annual Report 2025 (peer; five-year summary p.366, auditor's report p.386, revenue account p.394) · link · accessed 2026-10-31
10. AnalystBro market data: DSE daily bars for NITOLINS, PIONEERINS, RELIANCINS and CITYGENINS to 29-Oct-2026 · link · accessed 2026-10-31
11. DSE news archive for NITOLINS (old.dsebd.org, price-sensitive and other news), Nov-2024 to Oct-2026 · link · accessed 2026-10-31
12. The Business Standard, 'IDRA scraps commission payments in non-life insurance sector', 24 Dec 2025 · link · accessed 2026-10-31
13. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation', 30 Oct 2026 · link · accessed 2026-10-31
14. The Business Standard, 'Bangladesh gets 3 more years for LDC graduation', 30 Oct 2026 · link · accessed 2026-10-31
15. AnalystBro history and ratio model for NITOLINS (model.xlsx, the workbook below) · link · accessed 2026-10-31