Pragati Insurance financial analysis: H1 2026 profit up 37% as agency commission fell to near zero (Oct 2026)

A 40-year-old fire-and-marine insurer whose H1 2026 profit rose 37% after agency commission fell to almost nothing

What it is. Pragati Insurance PLC (DSE: PRAGATIINS) is a Dhaka general insurer incorporated on 27 January 1986 and listed on the DSE since 1996 [1 p.16] [10]. It wrote Tk 2,711m of gross premium in 2025: 44.5% fire, 39.8% marine (cargo and hull) and 15.7% motor and miscellaneous [1 p.37] [13]. It kept 53.9% of that premium after reinsurance [13]. Its board is drawn from Bangladeshi business groups: a former chairman, Alhaj Khalilur Rahman, is chairman and managing director of KDS Group [2 p.38], and KDS Group was the largest client among ten director-linked groups that bought cover in 2025 [1 p.21]. The company changed its name from Pragati Insurance Limited to Pragati Insurance PLC with effect from 29-Dec-2025 [9].

Where it stands. 2025 profit after tax rose 1.3% to Tk 419m (EPS Tk 5.31) [1 p.9]. Underwriting profit was flat at Tk 363m and other income (interest, rent and dividends) rose 7.3% to Tk 305m [1 p.9] [13]. Net claims incurred rose 36.2% to Tk 395m, and the liability for outstanding claims rose 55.9% to Tk 392m [1 p.10]. In the first half of 2026 the commission line fell from Tk 189.7m to Tk 0.17m, profit before investment income rose 79.2% and profit after tax rose 37.1% to Tk 252m, while gross premium fell 8.5% [4 p.2] [13]. The DSE-announced nine-month EPS is Tk 4.05 against Tk 3.07 (restated) [9]. The shares closed at Tk 70.5 on 29-Oct-2026 [8].

What drives shareholder returns. Pragati has two engines of similar size. Underwriting gave Tk 363m in 2025, equal to 63.5% of pre-tax profit; Tk 96.5m of management expenses were charged separately to the profit and loss account [1 p.9] [13]. Other income gave Tk 305m, of which interest on Tk 1.8bn of fixed deposits and Tk 0.56bn of treasury bonds was Tk 200m and building rent was Tk 75m [1 p.33]. The balance sheet is heavy relative to the business: net premium was only 0.32 times equity in 2025, so return on average equity has stayed in a narrow 9.3%-10.3% band since 2021 [13]. Capital allocation favours dividends: cash payout has ranged from 35.6% to 73.7% of reported EPS since 2020, with small stock dividends in each of the last four years [13] [10].

• How much of the commission saving stays in profit? Open question: the Q3 2026 results were announced 29-Oct-2026 (passed) but the full accounts are not yet in our corpus; the FY2026 annual report has no announced date (FY2025 accounts were approved 12-Apr-2026).
• How much premium did the agent suspension cost? Open question: FY2026 gross premium against Tk 2,711m in 2025 (report date not announced); H1 2026 was down 8.5%.
• Will the rise in outstanding claims turn into paid claims? Open question: note 22 in the FY2026 accounts (date not announced) against Tk 392m (fire Tk 308m) at end-2025.
• Will IDRA finalise lower management-expense caps? Open question: no date announced for IDRA's final notification; draft reported by TBS 14-Sep-2025 (passed).
• Why did the DSE sponsor/director holding fall from 41.99% to 35.07%? Open question: no source explains it; the DSE shareholding page shows the figure.

Fire is 44.5% of premium but mostly reinsured; marine is 39.8% and mostly kept

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 the unexpired part of each policy, and pays claims, agency commission and management expenses from what remains. Pragati reserves 40% of the year's net premium for fire, marine cargo, motor and miscellaneous, and 100% for marine hull [1 p.10]. The class revenue accounts give underwriting profit; interest, rent and dividends, less unallocated expenses and tax, give the bottom line [1 p.9]. Management expenses are apportioned to classes by management decision: 44.52% fire, 39.78% marine and 15.70% motor and miscellaneous in 2025 [1 p.18].

Classes. Fire premium rose 9.3% to Tk 1,207m in 2025, marine (including hull) rose 9.6% to Tk 1,079m and motor and miscellaneous rose 2.5% to Tk 426m, per the directors' report [2 p.70]. Fire is written mostly for industrial and commercial property, where large risks exceed a mid-sized insurer's capacity, so Pragati ceded Tk 812m of the fire premium and kept 32.7% [1 p.37] [13]. Marine cargo follows import letters of credit; Pragati kept 70.6% of marine premium. Motor and miscellaneous retention was 72.1% [13]. The company says the dollar shortage and Bangladesh Bank's limits on LC openings have 'crippled the marine and corporate sectors, directly reducing premium volumes' [2 p.126]. Public-sector business shared through Sadharan Bima Corporation (SBC) was Tk 108.6m in 2025, 4.0% of gross premium, accounted up to June 2025 on SBC's statement [1 p.17].

Reinsurance. Pragati's reinsurance premium is due to Sadharan Bima Corporation and General Insurance Corporation of India (GIC), with other reinsurers as placed [1 p.18]. It ceded Tk 1,248m in 2025, 46.1% of gross premium, and earned Tk 166m of reinsurance commission, down 7.7% from Tk 180m [1 p.10] [1 p.37]. Fire supplied Tk 142m of that commission [1 p.11]. The fire commission matters: without it the fire account, which already broke even, would have shown a large loss.

Growth record. Gross premium has grown slowly: from Tk 2,218m in 2020 to Tk 2,711m in 2025, a compound 4.1% a year, with a 9.0% fall in 2023 [3 p.59] [1 p.9] [13]. Net premium grew faster, from Tk 980m to Tk 1,463m, as retention rose from 44.2% to 53.9% [13]. The sector's premium grew 9.96% to Tk 46,850m in 2025 by IDRA's unaudited data quoted in the directors' report [2 p.69], so Pragati's 8.3% growth was slightly below the market and its share was about 5.8% [13].

Underwriting profit held at Tk 363m in 2025 as fire broke even and marine profit fell 19.6%

Our definitions. We measure claims as net claims incurred: claims paid in the year plus the closing estimate of outstanding claims less the opening estimate, net of reinsurance, as printed in the consolidated revenue account. The combined ratio is (net claims incurred + management expenses charged to the revenue account + agency commission - reinsurance commission earned) / net premium. We use the same formula for every peer below. It excludes the change in the unexpired-risk reserve and the management expenses charged to the profit and loss account.

Claims. Net claims incurred rose from Tk 290m in 2024 to Tk 395m in 2025, from 22.3% to 27.0% of net premium [1 p.10] [13]. Marine drove the increase: marine cargo claims went from Tk 37.5m to Tk 167.0m [1 p.10] [3 p.132]. Fire claims fell from Tk 224.0m to Tk 165.9m but stayed high against fire's Tk 394.7m net premium (42.0%) [1 p.11] [13]. The company's own 'Claim Ratio' of 22.32% for 2024 uses the same incurred figure, Tk 289.79m over net premium [3 p.59], so its basis matches ours.

Outstanding claims. The liability for outstanding claims rose from Tk 118.7m at end-2023 to Tk 251.8m at end-2024 and Tk 392.4m at end-2025 [1 p.31] [3 p.130]. Fire is Tk 308.4m of it and marine Tk 52.2m [1 p.31]. The rise is faster than net premium (26.8% of net premium at end-2025, 9.8% at end-2023) [13]. The note says that 'all the claims of which the management is aware of as per intimation up to the year-end have been taken into consideration' [1 p.31]; we did not find a separate IBNR (incurred but not reported) figure in the notes. At 30-Jun-2026 the balance was Tk 385.3m [4 p.1].

Expenses and commission. Management expenses charged to the revenue accounts were Tk 447m in 2025, 16.5% of gross premium (17.4% in 2023 and 2024) [1 p.18] [13]. Agency commission was Tk 365m, 13.5% of gross premium [1 p.10] [13]. Together they were 30.0% of gross premium, against 31.2% in 2023 [13]. Net of reinsurance commission, commission cost Tk 199m [1 p.37]. A further Tk 96.5m of management expenses, including Tk 40.9m of depreciation, sat in the profit and loss account [1 p.9].

Combined ratio. On our definition the combined ratio was 77.1% in 2023, 69.1% in 2024 and 71.2% in 2025 [13]. The 2025 rise came from claims (+4.7pp of net premium) and lower reinsurance commission (-2.5pp), offset by lower expenses relative to net premium [13]. Underwriting profit fell to 24.8% of net premium from 28.3%, the lowest in six years [13]. Marine profit fell 19.6% to Tk 246m because marine claims rose; motor and miscellaneous profit fell 5.0% to Tk 118m [2 p.70].

IDRA rules: agent licences suspended from 1-Jan-2026, expense caps under review, solvency last printed at 7.01 times

Agency commission. Pragati's annual report says that 'IDRA suspended licenses and commission structures for individual non-life insurance agents which has abruptly disrupted field-level business acquisition and premium collections, leaving many companies struggling to generate new sales' [2 p.125] [2 p.126]. It gives no date. The Business Standard reported on 24-Dec-2025 that an IDRA circular dated 23-Dec suspends all individual agent licences in non-life insurance from 1-Jan-2026 and that, citing section 58(1) of the Insurance Act 2010, commission cannot be paid to anyone other than a licensed agent or broker [11]. This is a single outlet; we did not find the IDRA circular itself in our corpus.

What the accounts show. In H1 2026 the profit and loss statement shows 'Commission' of Tk 0.17m against Tk 189.7m in H1 2025, 0.01% of gross premium against 14.2% [4 p.2] [13]. Over the same period gross premium fell 8.5% and net premium fell 8.3%, while 'allocable management expenses (including claim)' rose 10.8% to Tk 429m [4 p.2] [13]. The H1 statement does not split claims from management expenses, so we cannot say how much of that rise is claims and how much is expenses.

Expense limits. Pragati states that management expenses of Tk 446.9m were 'approximately 16.49% of gross premium' in 2025 [1 p.18]. It does not state its allowable limit under IDRA's expense rules or whether it was within it, in the pages we read. The auditor reports, under section 63(2) of the Insurance Act 2010, that all management expenses were debited to the related revenue accounts [1 p.7]. The Business Standard reported on 14-Sep-2025 that IDRA had published a draft to cut the caps by 10pp: for premium above Tk 1.2bn, from 22% to 12% for fire and general business and from 16% to 6% for marine [12]. That is a draft reported by one outlet; we found no final notification. Because the caps are tiered by premium slab and the middle slabs were not reported, we do not test Pragati against them.

Solvency. The 2024 annual report prints a solvency ratio of 7.01 for 2024 and 7.32 for 2023, with a solvency surplus of Tk 3,239m [3 p.59]. It does not state the basis; IDRA's SRO 313 of 18-Sep-2024 is the rule Reliance uses for its 3.03 ratio [6 p.87]. We did not find a 2025 solvency figure in the 2025 financial statements or the indexed annual report. With equity of Tk 4,523m and net premium of Tk 1,463m (0.32 times equity) [13], capital is large relative to the business written. Treasury bonds of Tk 560.7m are held with Bangladesh Bank as the statutory deposit under the Insurance Act 2010 [1 p.24].

Other income of Tk 305m was 53.4% of pre-tax profit: deposits, bonds and Tk 75m of rent

Mix. Other income was Tk 305.2m in 2025 against Tk 284.5m in 2024 [1 p.33]. Interest made up Tk 200.4m (65.7%): Tk 151.8m on fixed deposits, Tk 45.4m on treasury bonds and Tk 3.1m on short-term deposits [1 p.33] [13]. Building rent was Tk 75.1m, dividends Tk 15.6m and gains on selling shares Tk 12.5m [1 p.33]. The company is unusual among peers in owning a large rented building: investment property is carried at Tk 986.2m and owner-occupied office space at Tk 136.3m, on land of Tk 887.6m [1 p.36] [1 p.8].

Yields. Fixed deposits were Tk 1,784.9m at end-2025 (Tk 1,811.2m a year earlier); FDR interest of Tk 151.8m is 8.4% of the average balance [1 p.27] [13]. Treasury interest of Tk 45.4m is 8.1% of the average bond holding [13]. Rent was 3.6% of the book value of land and buildings [13], which are carried partly at a 2011 revaluation [1 p.30]. Interest rose only 2.1% on FDRs in 2025, so the increase in other income came mainly from bonds, rent and share-sale gains [13].

Shares. Listed shares cost Tk 369.1m and had a market value of Tk 442.7m at end-2025, an unrealised gain of Tk 73.6m carried in the fair-value reserve [1 p.26]. The largest holdings by market value were National Housing Finance and Investments (Tk 131.8m), Pragati Life Insurance (Tk 96.8m) and Kay & Que (Bangladesh) (Tk 39.6m) [1 p.25]. Unlisted holdings at cost were Tk 132.6m, including United Hospital (Tk 54.3m), Jamuna Resort (Tk 43.9m), IIDFC (Tk 31.2m) and CDBL (Tk 3.1m) [1 p.26]. The fair-value change through other comprehensive income was +Tk 8.3m in 2025 after -Tk 93.4m in 2024 [1 p.9]. In H1 2026 the fair-value gain was Tk 101.6m [4 p.2].

Commitment. On 14-May-2026 the board decided to invest Tk 3.0 crore for 30% of the minimum paid-up capital of First National Credit Bureau Limited, a proposed private credit bureau that can start operating only after it gets a Bangladesh Bank licence [9]. The amount is 0.7% of end-2025 equity [13].

Six-year ratios: ROE stuck near 10%, retention up 10pp, payout between 36% and 74%

Growth. Gross premium grew in four of the five years to 2025 and fell 9.0% in 2023 [13]. Net premium jumped 45.2% in 2022 as retention rose from 37.6% to 53.2%, and has stayed above 51% since [13]. Keeping more premium raises underwriting income but also the claims the company bears, which is what happened in fire in 2024 and marine in 2025 [1 p.10].

Margins. Underwriting profit as a share of net premium fell from 43.4% in 2021 to 24.8% in 2025 [13], because the claims ratio rose from 23.6% to 27.0% and retention brought more premium into the denominator. The share of pre-tax profit that came from outside underwriting (other income less P&L expenses) rose from 12.4% in 2020 to 36.5% in 2025 [13]. Each 1pp of the 2025 claims ratio equalled Tk 14.6m of pre-tax profit, 2.6% of PBT [13].

Returns. Return on average equity was 10.3% in 2021 and between 9.3% and 10.0% in every year since; it was 9.6% in 2025 [13]. Return on average assets was 6.0%-6.9% [13]. Equity is 71.3% of total assets [13], and much of it sits in land and buildings carried at Tk 2,097m [1 p.8], which earn rent and house the head office rather than backing premium. That is the main reason ROE is low relative to the underwriting margin.

Cash conversion. Operating cash flow was Tk 113.3m in 2025 against Tk 246.6m in 2024, or Tk 1.44 against Tk 3.13 a share [1 p.15]. Profit after tax was 3.7 times operating cash flow [13]. Tax payments of Tk 112.3m and higher payments for reinsurance, claims and commission (Tk 2,316m against Tk 1,938m) took the cash [1 p.15] [1 p.35]. The pattern reversed in 2026: nine-month NOCFPS was Tk 4.63 against a negative Tk 2.54 (restated) a year earlier [9].

Tax. The effective tax rate was 26.8% in 2025 [13]; the deferred-tax calculation uses a 37.5% rate [1 p.33]. Advance tax paid was Tk 467.1m against a provision of Tk 526.1m at end-2025 [1 p.8].

Against Green Delta, Reliance and Pioneer: the highest combined ratio and claims ratio, and the lowest reinsurance commission

We compare Pragati with three listed general insurers, using each company's own 2025 annual report and the same formulas. For Green Delta we use the consolidated all-business revenue account and the five-year table [5 p.344] [5 p.107]; for Reliance the 2025 summary of accounts [6 p.86] [6 p.87]; for Pioneer the five-year summary [7 p.11]. Prices are DSE closes on 29-Oct-2026 [8].

Labels each company prints. Each peer uses its own wording, which we quote. Pioneer prints a 'Combined Ratio' of 68.07% for 2025, which our formula reproduces (68.1%) [7 p.11] [13]. Reliance prints a 'Combined ratio' of 82.48%; that figure leaves out reinsurance commission, and on our formula Reliance is 53.1% [6 p.87] [13]. Green Delta prints no combined ratio; ours is 38.9% [13]. Pragati printed a 'Claim Ratio' of 22.32% and an 'Underwriting/Gross Profit Ratio' of 28.26% for 2024 [3 p.59]; neither is a combined ratio. For returns, Pioneer prints 'Return on Equity (Profit after tax)' of 9.72%, Reliance prints 'Return on shareholders' fund' of 19.17% and Green Delta prints 'Return on Average Equity (ROAE)' of 10% [7 p.11] [6 p.87] [5 p.107]; on PAT over average equity Pragati is 9.6% [13]. These return labels use different bases and are not like-for-like.

What explains the gaps. Pragati's combined ratio is 32.3pp above Green Delta's, 18.0pp above Reliance's and 3.1pp above Pioneer's [13]. Two items explain most of it. First, its claims ratio is the highest of the four, at 27.0% against 17.2%-22.2% [13]. Second, it earns the least reinsurance commission relative to net premium (11.4% against 29.3% at Reliance and 38.9% at Green Delta) [13], because it keeps more of what it writes: retention of 53.9% is similar to Pioneer's 53.1% and well above Reliance's 29.5% [13]. Its management expenses (16.5% of gross premium) are in line with Green Delta (16.0%) and Pioneer (16.6%) and twice Reliance's 7.8% [13]. Agency commission (13.5% of gross premium) is between Reliance's 10.0% and Pioneer's 14.6% [13].

On reported 2025 figures Pragati trades at 13.3 times EPS and 1.23 times year-end NAV per share, with a 3.8% cash yield; Green Delta is at 9.1 times and 0.87 times, Reliance at 11.1 times and 1.19 times, and Pioneer at 14.3 times and 1.39 times [13]. Pragati's EPS is before the 3% stock dividend for 2025, which the DSE shows as restating NAV per share to Tk 55.69 [9]. Green Delta's EPS and NAV are from its five-year table [5 p.107]. We show these as facts; we draw no conclusion from them about whether any price is right.

Balance sheet: no bank debt, Tk 1.9bn in cash and deposits, and a Tk 371m reinsurance receivable

Reinsurance balances. The receivable from other insurers rose from Tk 63.8m to Tk 377.1m in 2025 [1 p.8]. Almost all of it is a line labelled 'Re insurance Receivable Overseas', shown as Tk 1,189.2m less Tk 818.4m, giving a net Tk 370.8m (Tk 61.0m in 2024) [1 p.26]. At the same time the amount due to 'Sadharan Bima Corporation and others', which was a net Tk 170.2m payable at end-2024 (Tk 718.8m less Tk 548.7m) and Tk 512.1m at end-2023, is shown as nil at end-2025 [1 p.31] [3 p.130]. The notes do not split the 2025 balance by counterparty or give an ageing, so we cannot say how much is due from SBC. The net receivable is 8.2% of equity [13]. The directors write that the dollar shortage 'has caused significant payment delays to overseas reinsurers and state-owned entities like the Sadharan Bima Corporation' [2 p.126].

Cash and debt. Cash and cash equivalents were Tk 1,943.5m, of which Tk 1,784.9m was in FDRs [1 p.27]. The Sonali Bank overdraft, secured by a lien on FDRs at 13%, was repaid in 2024 and showed a small credit balance at end-2025 [1 p.31]. By 30-Jun-2026 the balance sheet showed a bank overdraft of Tk 50.3m and cash of Tk 1,884.0m [4 p.1]. The bank list for the FDRs is not disclosed in the notes we read, so we cannot test deposit concentration in weak banks.

Other assets. Sundry debtors of Tk 168.0m include Tk 54.8m of 'advance against insurance management software', unchanged from 2024, and Tk 44.1m due from Jamuna Resort Ltd., in which Pragati also holds unlisted shares costing Tk 43.9m [1 p.26]. Advance tax was Tk 467.1m and the tax provision Tk 526.1m [1 p.27] [1 p.8].

Auditor. Islam Quazi Shafique & Co. gave an unmodified opinion on the 2025 accounts, dated 12-Apr-2026 [1 p.1] [1 p.8]. Its key audit matters include premium income and property, plant and equipment [1 p.2] [1 p.3]. The same firm audited 2024 [3 p.129].

2026 so far: nine-month EPS Tk 4.05 against Tk 3.07, with commission gone and premium lower

H1 2026. Second-quarter profit after tax was Tk 123.5m against Tk 99.9m, and first-half profit Tk 252.2m against Tk 183.9m (+37.1%) [4 p.2] [13]. Profit before investment and other income rose 79.2% to Tk 191.2m; investment and other income rose 5.3% to Tk 155.7m [13]. The swing came from the commission line: Tk 0.17m against Tk 189.7m [4 p.2]. Gross premium fell to Tk 1,221m from Tk 1,335m [4 p.2]. EPS was Tk 3.11 against Tk 2.26 (restated) and NAV per share Tk 57.43 [4 p.2] [4 p.1]. The statements are signed by the 'Chief Executive Officer (Acting)' [4 p.1].

Q3 2026. The DSE-announced EPS was Tk 0.95 for July-September 2026 against Tk 0.81 (restated), and Tk 4.05 for nine months against Tk 3.07 (restated) [9]. NAV per share was Tk 57.64 at 30-Sep-2026 [9]. The company gave 'increase of operating income and other income' as the reason [9]. No quarter in 2025 or 2026 was loss-making on the DSE announcements. The 2025 quarterly EPS shown in the chart is as first announced, before the 3% stock-dividend restatement [9]. The full Q3 2026 accounts were not yet in our corpus, so we do not have the Q3 premium or commission lines.

Directors from KDS, MKR and Abdul Monem groups; related-party premium of Tk 119m; a cash dividend every year since 2015

Board groups. The annual report lists 17 directors who together held 35.28% of the shares at end-2025 [2 p.123]. The chairman is Syed M. Altaf Hussain (2.03%) [2 p.36] [2 p.123]. The largest single holder among directors is Alhaj Khalilur Rahman (5.06%), a sponsor director and former chairman who is chairman and managing director of KDS Group [2 p.38] [2 p.123]; his daughter Farida Akther, a nominated director, is a director of Canvas Clothing Limited under KDS Group [2 p.49]. Mohammed Abdul Awwal, a sponsor director, leads MKR Group and Bengal Shipping Line [2 p.39]. A.S.M. Mohiuddin Monem is from Abdul Monem Limited [2 p.43]. The board met nine times in 2025 and directors attended 74.31% of meetings in aggregate [2 p.77].

Related parties. Ten groups with a common director accounted for Tk 119.4m of premium in 2025 (labelled 'Net Premium' in note 2.17; Tk 122.0m in 2024), equal to 4.4% of gross premium, and Pragati paid them Tk 29.6m of claims (Tk 13.9m in 2024) [1 p.21] [3 p.143] [13]. KDS Group alone was Tk 65.9m of premium and Tk 19.8m of claims [1 p.21]. The company states that all related-party transactions were 'on a arm's length basis at commercial rates' [1 p.20]. Payments to the advisor were Tk 9.6m and to the managing director Tk 7.2m in 2025, and directors' fees Tk 3.3m [1 p.35].

Shareholding changes. The DSE shows sponsors and directors at 41.99% at 31-Dec-2025 and 35.07% at 31-Aug-2026 and 30-Sep-2026; institutions held 23.46% and the public 41.47% at 30-Sep-2026 [10]. The DSE figure for December differs from the annual report's directors' total of 35.28% [2 p.123]; the DSE uses its own definition of sponsor [10]. We did not find a DSE news item explaining the fall. The only sponsor transfer in the news we read is Ms. Nahreen Yeahea receiving 101,652 shares from her late husband's estate, confirmed on 30-Aug-2026 [9]. For the two Group B (public) director seats, Mr. Nasir Latif and Mr. Tajwar M. Awal were the only nominees and were to be taken as elected at the AGM [2 p.71], which the DSE shows was held on 18-Jun-2026 [10].

Dividends. The DSE record shows a cash dividend every year since 2015, rising from 10% of par in 2015-2016 to a peak of 35% in 2021, and 27% for 2025 [10]. Stock dividends were paid for 2016-2018 and every year from 2022 to 2025 [10]. For 2025 the board recommended 27% cash and 3% stock, Tk 236.5m in total, out of Tk 465.9m available after a Tk 146.3m appropriation to the reserve for exceptional losses [2 p.71]. The cash part is 50.8% of reported EPS [13]. Paid-up capital rose to Tk 812.1m after the bonus shares, which were credited by 19-Jul-2026 [10] [9]. The company says it pays stock dividends 'to increase the Paid-up Capital of the Company which will strengthen its financial status' [9].

Rating. National Credit Ratings Limited assigned a surveillance entity rating of AAA (long term) and ST-1 (short term) with a stable outlook on 25-Aug-2026, based on the 2025 accounts [9]. The company describes this as the seventh consecutive year at AAA [2 p.33].

What will move the lines next: commission, premium volume, outstanding fire claims and expense caps

Forward dates. We found no announced date after 31-Oct-2026 for any item above. The FY2026 annual accounts have no date yet on the DSE; the FY2025 accounts were approved on 12-Apr-2026 [1 p.35]. The IDRA expense-cap notification and the Bangladesh Bank licence for the credit bureau have no announced dates.

Commission. The clearest change is commission. In 2025 agency commission was Tk 365m, 13.5% of gross premium and 63.9% of pre-tax profit [1 p.10] [13]. In H1 2026 the line was Tk 0.17m [4 p.2]. The direction for the commission line is down; the open question is how much premium goes with it. Pragati's own report says the suspension 'abruptly disrupted field-level business acquisition and premium collections' [2 p.125] [2 p.126], and H1 gross premium fell 8.5% [13]. Allocable management expenses including claims rose 10.8% in H1 [13], so part of the saving may be offset elsewhere; the half-year statement does not split the line.

Claims. Outstanding claims of Tk 392m at end-2025, Tk 308m of it fire [1 p.31], will be settled or released over coming periods. If they are paid at the booked amount the cash goes out without a further profit charge; any shortfall or excess moves the claims line. The balance was Tk 385m at 30-Jun-2026 [4 p.1].

Expenses. If IDRA adopts the draft reported by TBS, the top-slab caps for premium above Tk 1.2bn would fall to 12% for fire and 6% for marine [12]. Pragati's management expenses were 16.5% of gross premium in both fire and marine in 2025 (by its allocation) [1 p.37] [13], but the caps apply by slab and the middle slabs were not reported, so we do not compute a breach. The line moved would be management expenses, down.

Investment income. Interest on FDRs and bonds was Tk 197m in 2025 [1 p.33]. The direction depends on deposit and treasury rates set outside the company; we make no forecast. Building rent, Tk 75m, is more stable and rose 4.3% in 2025 [1 p.33] [13].

Risks: premium lost with the agents, fire claims, a reinsurance receivable without counterparty split, and weak cash conversion

Premium. The largest open risk is volume. Gross premium fell 8.5% in H1 2026 [4 p.2], and the company's annual report says the suspension disrupted field-level premium collection across the non-life sector [2 p.125] [2 p.126]. If premium falls further, net premium and therefore underwriting profit fall with it, even with commission gone.

Claims. Pragati keeps 32.7% of fire premium and 70.6% of marine [13]. A large fire or cargo loss can move the claims line sharply, as 2024 (fire claims Tk 224m) and 2025 (marine cargo claims Tk 167m) showed [3 p.132] [1 p.10]. The outstanding claims liability has more than tripled in two years [1 p.31] [3 p.130].

Receivables and cash. The net overseas reinsurance receivable of Tk 371m appeared in one year without a counterparty split [1 p.26]. Together with operating cash flow of 0.27 times profit [13], this means 2025 profit was not matched by cash. The 2026 nine-month NOCFPS of Tk 4.63 shows a reversal so far [9].

Other. Listed shares are concentrated in National Housing Finance and Pragati Life Insurance (Tk 228.6m of Tk 442.7m) [1 p.25]. Changes in their prices move OCI and NAV, not profit. The H1 2026 accounts are signed by an acting chief executive [4 p.1]; we did not find a DSE item on the appointment.

• Open question: Q3 2026 gross premium and commission (results announced 29-Oct-2026, passed; full accounts not yet in our corpus).
• Open question: note 9 receivable split, note 22 outstanding claims and solvency ratio in the FY2026 annual report (date not announced).
• Open question: IDRA final notification on expense caps: no date announced; draft reported 14-Sep-2025 (passed).
• Open question: the sponsor/director holding after 35.07% on 30-Sep-2026 (no reason disclosed).
• Open question: Bangladesh Bank licence for First National Credit Bureau (board decision 14-May-2026, passed; no licence date announced).

Six-year history

Figures for 2020-2024 come from the five-year table in the 2024 annual report [3 p.59] and 2025 from the audited 2025 statements [1 p.8] [1 p.9] [1 p.10]. The five-year table prints shareholders' equity of Tk 3,870.4m for both 2022 and 2023; we use the 2023 balance sheet figure of Tk 4,061.2m for 2023 [3 p.130]. EPS is as first reported; later stock dividends restate it (2024 EPS Tk 5.61 as reported, Tk 5.24 restated) [9]. Year-end P/E was 9.3 times and P/B 0.91 times at the 2024 close of Tk 52.2 [13].

FAQ

Why did Pragati Insurance's profit rise in 2026?

In H1 2026 the commission line fell to Tk 0.17m from Tk 189.7m after IDRA suspended individual agent licences from 1-Jan-2026 (as reported by The Business Standard). Profit after tax rose 37.1% to Tk 252m while gross premium fell 8.5%. Nine-month EPS announced on the DSE was Tk 4.05 against Tk 3.07.

What is Pragati Insurance's combined ratio?

71.2% in 2025 on net claims incurred plus revenue-account management expenses plus agency commission less reinsurance commission, over net premium (69.1% in 2024, 77.1% in 2023).

How much of Pragati Insurance's profit comes from investments and rent?

Other income was Tk 305m in 2025, 53.4% of pre-tax profit: Tk 200m of interest, Tk 75m of building rent, Tk 16m of dividends and Tk 12m of share-sale gains.

What dividend did Pragati Insurance pay for 2025?

27% cash (Tk 2.70 a share) and 3% stock. The cash part was 50.8% of EPS. The DSE record shows a cash dividend every year since 2015.

Who are Pragati Insurance's related parties?

Ten groups with a common director, led by KDS Group, accounted for Tk 119m of premium ('Net Premium' in note 2.17) in 2025 and received Tk 30m of claims. KDS Group's chairman, Khalilur Rahman, is the largest individual director shareholder at 5.06%.

Sources

1. Pragati Insurance PLC audited financial statements 2025 (extract of Annual Report 2025; corpus PRAGATIINS_ANNUAL_2025_2, PDF page numbers) · link · accessed 2026-10-31
2. Pragati Insurance PLC Annual Report 2025 (corpus PRAGATIINS_ANNUAL_2025, PDF page numbers; OCR text) · link · accessed 2026-10-31
3. Pragati Insurance Limited Annual Report 2024 (corpus PRAGATIINS_ANNUAL_2024_3; five-year table p.59, statements p.130-143) · link · accessed 2026-10-31
4. Pragati Insurance PLC un-audited condensed financial statements to 30-Jun-2026 (read from the page images) · link · accessed 2026-10-31
5. Green Delta Insurance PLC Annual Report 2025 (peer; five-year table p.107, consolidated all-business revenue account p.344) · link · accessed 2026-10-31
6. Reliance Insurance PLC Annual Report 2025 (peer; summary of accounts p.86, highlights p.87) · link · accessed 2026-10-31
7. Pioneer Insurance PLC Annual Report 2025 (peer; financial ratios and five-year summary p.11) · link · accessed 2026-10-31
8. AnalystBro market data: DSE daily bars for PRAGATIINS, GREENDELT, RELIANCINS and PIONEERINS to 29-Oct-2026 · link · accessed 2026-10-31
9. Dhaka Stock Exchange news archive for PRAGATIINS, Oct-2024 to Oct-2026 (results, dividends, rating, FNCBL, sponsor share receipt) · link · accessed 2026-10-31
10. Dhaka Stock Exchange company page for PRAGATIINS (dividend history, shareholding, 52-week range, market capitalisation), read 31-Oct-2026 · link · accessed 2026-10-31
11. The Business Standard, 'IDRA scraps commission payments in non-life insurance sector', 24 Dec 2025 · link · accessed 2026-10-31
12. The Business Standard, 'IDRA moves to reduce management expenses in non-life insurance', 14 Sep 2025 · link · accessed 2026-10-31
13. AnalystBro history and ratio model for PRAGATIINS (model.xlsx, the workbook below) · link · accessed 2026-10-31