Sena Insurance financial analysis: investment income at 68% of profit and H1 2026 claims doubled (Oct 2026)

An army-welfare-owned insurer that cedes two-thirds of its premium and earns two-thirds of its profit from deposits

What it is. Sena Insurance PLC (DSE: SIPLC), called Sena Kalyan Insurance Company Limited until August 2024, is a general (non-life) insurer incorporated in September 2013 and listed on the Dhaka and Chittagong exchanges after a public issue in 2021 [1 p.20]. Sena Kalyan Sangstha (SKS), the welfare organisation of the Bangladesh Armed Forces, holds 24.0m of the 40.0m shares, or 60.00% [1 p.20] [1 p.30]. The company writes fire, marine, motor, aviation, engineering and other miscellaneous insurance through its branches and reported 151 full-time employees in 2025 [1 p.20] [1 p.26]. All figures in this note are on the company basis: SIPLC publishes one set of company accounts, and 'consolidated' in its revenue account means the sum of its classes, with branch books aggregated at head office [1 p.21] [1 p.25].

Where it stands. Gross premium, including its share of public-sector business, rose 47.5% in 2025 to Tk 1,502.6m, the largest increase in the seven years we cover [1 p.48] [21]. SIPLC ceded Tk 996.9m of that to reinsurers and kept Tk 505.7m, a retention of 33.7% [1 p.48] [21]. Underwriting profit rose 7.3% to Tk 110.8m, investment and other income rose 19.3% to Tk 161.5m, and profit after tax rose 20.3% to Tk 206.6m, or EPS Tk 5.17 against Tk 4.29 [1 p.10] [1 p.43] [21]. In 2026 the half-year accounts show net claims doubling to Tk 190.4m and no agency commission at all, and the DSE-announced nine-month EPS is Tk 5.07 against Tk 4.28 [7 p.8] [16].

The shape of the business. Three features set SIPLC apart within the set of insurers we compare. First, it keeps little of what it writes: retention was 33.7% in 2025, against 64.7% at City Insurance and 53.1% at Pioneer Insurance, and above only Reliance Insurance's 29.5% [13 p.394] [15 p.11] [14 p.86] [21]. Second, more than half its pre-tax profit comes from deposits rather than underwriting: investment and other income was 67.6% of profit before tax in 2025, up from 39.8% in 2019 [21]. Third, its deposits sit heavily with one bank: Trust Bank PLC held Tk 535.9m of the Tk 1,309.0m of fixed deposits at end-2025, 40.9% [1 p.38] [21].

What drove 2025. Two lines moved most. Fire premium rose 69.7% to Tk 591.0m and miscellaneous (which here includes aviation and engineering) rose 42.8% to Tk 701.4m [1 p.31] [21]. On the claims side, the miscellaneous account recorded negative net claims of Tk 46.7m because estimated outstanding miscellaneous claims fell from Tk 74.7m to Tk 14.7m while only Tk 13.3m was paid [1 p.18] [1 p.32]. That reserve release is the main reason the company-wide net claims ratio fell from 47.6% to 23.8% [21]. Against that, agency commission nearly doubled to Tk 107.8m and management expenses rose 19.6% to Tk 160.0m [1 p.14].

• Was the 2025 claims ratio a one-off? Signpost: the FY2026 revenue accounts, expected with the annual results (board date not yet notified; February 2027 on recent timing, inferred).
• Will the outstanding-claims build-up in 2026 turn into paid claims? Signpost: the year-end 2026 claims liability and the 'paid during the year' line.
• How much of the 2026 profit comes from the absence of agency commission? Signpost: the Q3 2026 and FY2026 revenue accounts; the company already cites lower agency commission for its Q3 2026 EPS [16].
• Does deposit income hold up as deposits roll? Signpost: FDR interest and the year-end FDR balance in the FY2026 notes.
• What happens to the Rupganj land decisions that needed IDRA approval? Signpost: investment-property additions in the FY2026 notes [11 p.1].

Fire and miscellaneous are 86% of premium, and two-thirds of it is passed to reinsurers

How it makes money. A Bangladeshi general insurer collects premium when it issues a policy, passes part of each risk to reinsurers (who pay it a commission in return), holds back a reserve for the unexpired part of each policy, and pays claims, agency commission and management expenses from the rest; the remainder is the underwriting profit [1 p.14]. SIPLC's unexpired-risk reserve is 40% of the year's net premium for fire and motor, 50% for marine cargo and miscellaneous, and 100% for marine hull and aviation [1 p.26]. Premium collected up front is invested, mainly in bank fixed deposits, and the interest is the second profit stream [1 p.39]. Public-sector business (PSB), the share of state-owned risks distributed through Sadharan Bima Corporation (SBC), is booked when SBC sends its statement; the 2025 accounts include the fourth quarter of 2024 and the first three quarters of 2025 [1 p.24].

Classes. Miscellaneous is the largest class: Tk 701.4m in 2025, 46.7% of gross premium, and between 46.7% and 58.5% in every year since 2020 [1 p.31] [21]. The company's product list puts aviation, engineering (contractors' and erection all-risks, machinery breakdown, power-plant cover), travel and micro insurance under this heading, and its client list names power producers and airlines [10 p.14] [10 p.18]. Fire has grown fastest, from Tk 125.3m in 2020 to Tk 591.0m in 2025, taking its share from 21.6% to 39.3% [21]. Marine cargo, which tracks import letters of credit, was Tk 169.9m (11.3%), hull Tk 20.7m and motor Tk 19.6m [1 p.31]. Motor has shrunk from Tk 52.9m in 2020 [6 p.47].

Reinsurance. Because aviation, power-plant and large fire risks are bigger than SIPLC's own capacity, most of the premium is passed on. In 2025 the XL form shows Tk 883.8m ceded on direct business and Tk 113.1m on PSB, against which SIPLC earned Tk 75.5m of reinsurance commission [1 p.48]. At end-2025 it owed Tk 36.4m to SBC and Tk 50.5m to overseas reinsurers [1 p.32]. Retention has fallen from 51.3% in 2020 to 33.7% in 2025 as fire and miscellaneous grew [21]. The practical effect is that SIPLC's underwriting profit depends less on its own claims experience on large risks and more on the commission it earns from reinsurers and on how much of each loss reinsurers carry.

Sponsor links. SKS companies are customers. The related-party note lists Tk 45.5m of 2025 premium from SKS-linked entities with common directors, 3.0% of gross premium, up from Tk 27.6m in 2024; the largest are Sena Edible Oil Industries (Tk 14.6m), Sena Kalyan Sangstha itself (Tk 8.9m), SKS LPG (Tk 7.5m) and Mongla Cement Factory (Tk 5.3m) [1 p.45] [21]. The head office is in SKS Tower in Mohakhali [1 p.20], and in 2022 the auditor drew attention to office space bought from related parties with IPO proceeds [4 p.2].

Scale. SIPLC is mid-sized among the insurers we compare. Its Tk 1,502.6m of 2025 gross premium compares with Tk 938.6m at City Insurance, Tk 3,876.2m at Pioneer Insurance and Tk 5,410.4m at Reliance Insurance [13 p.394] [15 p.11] [14 p.86]. Gross premium has grown at a 17.3% compound rate since 2019, with jumps of 34.4% in 2021, 24.9% in 2023 and 47.5% in 2025, and near-flat years in 2020, 2022 and 2024 [21]. The company's own profile describes it as the youngest general insurer in the country and reports a claim settlement ratio of 88% [10 p.5] [10 p.15].

Underwriting profit rose 7.3% in 2025 on a miscellaneous reserve release, while commission and expenses rose faster than net premium

Net premium. Net premium rose 36.4% to Tk 505.7m in 2025, after a 11.9% fall in 2024 when ceding rose faster than gross premium [6 p.16] [4 p.12] [2 p.16] [1 p.14] [21]. By class, miscellaneous net premium nearly tripled from Tk 64.9m to Tk 179.1m, marine rose from Tk 132.1m to Tk 148.4m, fire was flat at Tk 159.2m despite the jump in gross fire premium, and motor rose to Tk 18.9m [1 p.15] [1 p.16] [1 p.17] [1 p.18]. Fire's flat net premium on 69.7% more gross premium means almost all of the new fire business was reinsured [21].

Claims. We measure claims as net claims incurred: paid in the year, plus outstanding at the year-end, less outstanding at the start. On that basis net claims fell from Tk 176.2m in 2024 to Tk 120.1m in 2025, from 47.6% to 23.8% of net premium [1 p.14] [21]. By class, fire claims were Tk 87.1m (54.7% of fire net premium) and marine Tk 78.4m (52.8%), up from Tk 10.3m in 2024, while miscellaneous was negative at minus Tk 46.7m [1 p.15] [1 p.16] [1 p.18] [21]. Over seven years the claims ratio has ranged from 9.1% (2019) to 59.1% (2021) with a median of 34.6% [21]; a single large loss or release moves it by tens of points because net premium is small relative to the risks written.

Outstanding claims. Estimated outstanding claims were Tk 364.2m at end-2025: fire Tk 233.7m, marine Tk 115.7m, miscellaneous Tk 14.7m and motor Tk 0.1m [1 p.32]. That is 72.0% of the year's net premium, down from 101.6% in 2024 but above the 15.7% of 2019 [21]. The accounts state that all claims intimated by 31 December have been included [1 p.32]; we found no separate reserve for claims incurred but not reported in the notes. By 30-Jun-2026 the liability had risen to Tk 523.7m, with fire at Tk 309.5m, marine at Tk 155.9m and miscellaneous back up to Tk 57.4m [7 p.26].

Agency commission. Note 28 cites IDRA's October 2021 circular fixing agency commission at 15% for all non-life classes [1 p.40]. SIPLC paid Tk 107.8m in 2025, 7.2% of gross premium, against Tk 55.4m (5.4%) in 2024 and a 2.9%-7.2% range since 2019 [1 p.40] [21]. Fire commission rose from Tk 31.5m to Tk 53.2m and miscellaneous from Tk 7.0m to Tk 28.5m [1 p.40]. The Business Standard reported on 24-Dec-2025 that IDRA, by a circular of 23-Dec-2025, suspended all individual agent licences in non-life insurance from 1-Jan-2026 [18]; the H1 2026 revenue account shows a dash for agency commission, against Tk 29.7m in H1 2025 [7 p.8].

Management expenses. Management expenses charged to the revenue accounts were Tk 160.0m in 2025, 10.6% of gross premium, the lowest share in seven years [1 p.14] [21]. Salaries and allowances were Tk 81.4m, PSB management and business expenses Tk 9.2m and fees and charges Tk 6.3m (Tk 0.02m in 2024) [1 p.40] [1 p.41]. Including agency commission, the company states that management expenses were 17.82% of gross premium including PSB and 52.96% of net premium [1 p.25]. A further Tk 21.3m of expenses (mostly Tk 15.1m of depreciation) sits in the profit and loss account, not the revenue accounts [1 p.10].

One definition for every ratio. We define the combined ratio as (net claims incurred + management expenses + agency commission - reinsurance commission) / net premium, and use the same definition for the peers. SIPLC's combined ratio was 61.8% in 2025 against 85.4% in 2024 and a seven-year median of 64.7% [21]. Because the unexpired-risk reserve also moves underwriting profit, the underwriting margin (underwriting profit over net premium) moves less: 21.9% in 2025, 27.9% in 2024 and between 21.3% and 29.8% in every year since 2019 [21]. In 2025 the reserve took Tk 82.4m out of the year's result as net premium grew, after adding Tk 49.3m in 2024 when net premium fell [1 p.14].

Sensitivity from history. In 2025 each 1pp of claims ratio on SIPLC's net premium was Tk 5.1m of underwriting profit, about 2.4% of 2025 profit after tax before tax effects [21]. The Tk 60.0m miscellaneous reserve release alone was worth 11.9pp of the 2025 claims ratio [21].

Deposits earned Tk 124.8m in 2025, 80% of investment income, at an average 9.7%

Where the money is. At end-2025 SIPLC held Tk 1,309.0m of fixed deposits, Tk 57.1m in bank accounts, Tk 166.9m of government treasury bonds (of which Tk 26.0m is the statutory deposit with Bangladesh Bank), Tk 10.8m of bonds, Tk 188.7m of investment property and Tk 25.8m of listed shares at market value [1 p.9] [1 p.35] [1 p.36]. Fixed deposits were 64.3% of total assets, down from 77.8% in 2019 as property and bonds were added [21].

Deposit income. FDR interest rose 20.6% to Tk 124.8m in 2025, 79.7% of interest, dividend and rent income [1 p.39] [21]. On the average of opening and closing deposits that is a 9.7% yield, against 8.6% in 2024 [21]. Treasury bond interest nearly tripled to Tk 19.2m [1 p.39]. Accrued interest receivable at year-end was Tk 54.8m, of which Tk 46.3m was on FDRs, about the same as the Tk 46.1m a year earlier [1 p.36]. The H1 2026 accounts show interest and dividend income of Tk 81.3m, 9.7% more than in H1 2025, and fixed deposits of Tk 1,427.3m at 30 June [7 p.4] [7 p.3]. Each 1pp of yield on the 2025 average deposit balance was Tk 12.8m of pre-tax income [21].

Concentration. The 2025 list names 32 institutions, 28 of them with balances at year-end, but the top three hold 63.3%: Trust Bank PLC Tk 535.9m, Shimanto Bank PLC Tk 174.0m and Exim Bank PLC Tk 118.2m [1 p.38] [21]. Most of the bank accounts are also at Trust Bank [1 p.38]. The notes do not give an impairment test or ageing for any deposit. Tk 3.1m has been held with People Leasing & Financial Services since at least 2019 and is still carried at Tk 3.1m [6 p.37] [1 p.38]. The accounts state that cash and cash equivalents, which include all FDRs, are not restricted in use [1 p.24].

Property and shares. Investment property rose from Tk 70.5m to Tk 188.7m in 2025, with Tk 121.7m of additions; the note describes 6,992 sq ft with land in SKS Business Mart and 74.22 decimals of land at Noyagao, Rupganj, Narayanganj, carried at cost less depreciation [1 p.35] [1 p.36] [1 p.49]. The listed share portfolio cost Tk 50.8m and had a market value of Tk 25.8m at year-end; the Tk 25.0m difference sits in a negative investment fluctuation fund within equity [1 p.31]. The DSE posts record two board decisions to buy land at Rupganj subject to IDRA approval: 60.22 decimals for Tk 9.03 crore (posted 6-Feb-2025) and 11.31 decimals for Tk 1.28 crore (board meeting of 16-Feb-2026) [16] [11 p.1].

Tax. The effective tax rate was 13.6% in 2025 and has ranged from 8.5% to 17.5% since 2019 [21], well below the 37.5% business-income rate, because the transfer to the reserve for exceptional losses (10% of premium, Tk 150.3m in 2025) is deducted before business income is taxed [1 p.26] [1 p.32]. Tax assessments for income years 2015 to 2024 are not yet finalised [1 p.37]. Workers' profit participation fund (WPPF) is charged at 5% of profit, Tk 12.0m in 2025, and profit before tax in this note is after WPPF [1 p.10] [1 p.27].

Seven-year ratios: ROE between 14.7% and 20.0%, cash conversion down to 0.97x, payout at 29%

Returns. Return on average equity was 19.2% in 2025, the highest since 2020's 20.0%, after a low of 14.7% in 2022 when the 2021 IPO money had enlarged equity [21]. Return on average assets was 10.5% [21]. The company prints a return on average equity of 18.40% for 2024 in its profile [10 p.16]; on average year-end equity we get 18.0% [21].

Leverage and capital. SIPLC has no borrowings [1 p.25]. Equity was 56.1% of total assets at end-2025 and between 51.7% and 58.2% in every year [21]. Net premium was 0.44 times equity, so a 10% swing in net premium is small relative to capital [21]. Of the Tk 1,143.3m of equity, Tk 708.0m is the reserve for exceptional losses, a tax-deductible appropriation of 10% of premium each year that stays within equity [1 p.8] [1 p.31]. Retained earnings were only Tk 60.4m [1 p.8]. The solvency calculation under IDRA rules is not in the documents we hold.

Cash conversion. Operating cash flow was Tk 200.0m in 2025, 0.97 times profit after tax, against 1.68 times in 2024 and above 2.3 times in 2019-2021 [1 p.13] [21]. The cash-flow statement shows Tk 1,737.6m collected and Tk 1,493.0m paid for expenses, reinsurance and claims, of which Tk 996.9m went on reinsurance premium ceded [1 p.13] [1 p.44]. The company's DSE explanation for the lower operating cash flow per share was an increase in reinsurance payment [11 p.1]. In H1 2026 operating cash flow was Tk 253.0m against Tk 160.0m, and the company attributed the higher figure to lower reinsurance payments [7 p.7] [16].

Payout. The 15% cash dividend for 2025 (Tk 1.50 a share, Tk 60.0m) was 29% of EPS, the lowest payout since 2020's 25% [21]. The dividend per share has risen from Tk 1.00 for 2019 to Tk 1.50, with increases in three of the six years, while EPS rose faster [10 p.16] [21]. No stock dividend appears in any year covered; share capital changed only with the Tk 160.0m IPO in 2021 [4 p.10].

Against City, Reliance and Pioneer: the second-lowest retention and second-lowest combined ratio

The set and the basis. We compare SIPLC with three listed general insurers whose 2025 annual reports are in our corpus: City Insurance (a marine-cargo writer), Reliance Insurance (a large fire writer that also cedes most of its premium) and Pioneer Insurance. Every figure comes from each company's own 2025 report, re-opened for this note, and every ratio uses the same definition [13 p.394] [14 p.86] [15 p.11]. All four are on a company basis. Each prints its claims line under its own label: SIPLC 'Claim under policies less Re-Insurance', City 'Claims under policies, less re-insurance', Reliance 'Net Incurred Claims' and Pioneer 'Net Claim'.

Retention and commission. SIPLC kept 33.7% of its gross premium, more than Reliance (29.5%) and less than Pioneer (53.1%) and City (64.7%) [21]. It paid agency commission equal to 7.2% of gross premium, the lowest of the four; City paid 15.0%, Pioneer 14.6% and Reliance 10.0% [21]. Low agency commission helps SIPLC's expense ratio; reinsurance commission was 14.9% of its net premium against 29.3% at Reliance, 11.8% at City and 10.0% at Pioneer [21].

Combined ratio. On the same definition SIPLC's 2025 combined ratio was 61.8%, below City (74.9%) and Pioneer (68.1%, matching Pioneer's printed 68.07%) and above Reliance (53.1%) [21] [15 p.11]. SIPLC's 2025 figure includes the miscellaneous reserve release; on its 2024 accounts it was 85.4%, the highest of its seven years except 2021 [21]. Its claims ratio of 23.8% was the highest of the four by a small margin, against 22.2% at both City and Reliance and 19.4% at Pioneer [21].

Profit mix. Investment income was 67.6% of SIPLC's pre-tax profit, against 57.6% at Reliance and 27.2% at Pioneer [21]. We use each company's printed line: Reliance 'Investment Income (Before Tax)' and Pioneer 'Investment Income'; SIPLC prints no single line, so its figure is interest, dividend and rent plus other income, of which other income was Tk 5.0m [1 p.10] [14 p.86] [15 p.11]. WPPF is charged before profit before tax at SIPLC [1 p.10]; we did not check the peers' WPPF treatment, so the PBT-based column is indicative. SIPLC has no borrowings; its only finance cost is Tk 0.5m of lease interest inside management expenses [1 p.25] [1 p.40].

Balance sheet: Tk 1.37bn of cash and deposits, no debt, Tk 364m of claims outstanding, unmodified audits

Assets. Cash, bank balances and fixed deposits of Tk 1,366.6m were 67.1% of total assets at end-2025 [1 p.9] [21]. Sundry debtors rose to Tk 94.4m, of which Tk 60.8m is a premium control account (marine hull instalments due, cheques in hand and bank guarantees) and Tk 28.3m is advance income tax [1 p.37]. Tk 0.8m has been due from SBC against an aviation claim raised on 2-May-2019 [1 p.37]. The 2024 balance sheet was restated to correct premium deposits for marine cover notes that had also been included in sundry debtors, which raised 2024 total assets from Tk 1,842.7m to Tk 1,890.5m [1 p.29] [2 p.10] [1 p.8].

Liabilities. Premium deposits of Tk 106.0m are money received on marine cover notes for which policies have not yet been issued [1 p.32]. The amount due to SBC and overseas reinsurers halved to Tk 86.9m [1 p.32]. A VAT claim of Tk 10.8m raised by the Customs, Excise and VAT authority over VAT on agency commission and reinsurance commission is disclosed as a contingent liability pending the commissioner's decision [1 p.47]. The notes state there was no capital-expenditure commitment and no claim not acknowledged as debt at year-end [1 p.45].

Audit. Mahfel Huq & Co. audited 2025 and gave 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), 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] Its key audit matter was premium income [1 p.4]. The 2023 accounts were audited by FAMES & R, also unmodified [3 p.2]. For 2022 Mahfel Huq & Co. added an emphasis of matter on three items: WPPF that 'is yet to be distributed among the workers', an office asset bought from SKS that was not yet registered in the company's name, and office spaces bought from related parties 'using the proceeds of the IPO funds as consented by the BSEC, for which the company will take approval in the Annual General Meeting (AGM)' [4 p.2]. The auditor also states that the company departs from parts of IFRS 9 and IAS 37 where the Insurance Act prescribes different treatment [1 p.27].

Branches. Note 1.01 says the company operates through 13 branches and note 1.04 says twelve [1 p.20]; we report the discrepancy without resolving it.

2026 so far: claims doubled in H1, agency commission went to zero, and nine-month EPS rose 18.5% to Tk 5.07

First half. In H1 2026 net premium was flat at Tk 258.2m (+1.0%) while net claims incurred rose 102.2% to Tk 190.4m, a claims ratio of 73.7% against 36.8% [7 p.8] [21]. Agency commission was nil against Tk 29.7m, reinsurance commission fell 17.7% to Tk 42.1m and management expenses rose 6.5% to Tk 84.4m [7 p.8] [21]. Underwriting profit still rose 11.4% to Tk 104.6m, helped by a Tk 79.2m fall in the unexpired-risk reserve [7 p.8]. Interest and dividend income rose 9.7% to Tk 81.3m, profit before tax rose 3.7% to Tk 162.0m and, with tax up from Tk 17.6m to Tk 26.3m, profit after tax fell 2.2% to Tk 135.7m (EPS Tk 3.39 against Tk 3.47) [7 p.4] [7 p.5]. The company told the DSE the lower EPS was due to 'higher payment of claim' [16], but the revenue account shows claims paid in the half fell from Tk 44.2m to Tk 30.9m; the increase is in outstanding claims [7 p.8].

Premium in 2026. The H1 2026 interim does not print gross premium on the pages we read, but the reserve for exceptional losses, set at 10% of premium, was Tk 89.4m for the half against Tk 98.4m a year earlier, which implies gross premium about 9.2% lower (Tk 89,388,634 against Tk 98,426,242, unrounded) [7 p.5] [21]. The Q1 2026 explanation adds that a large policy written on 31-Mar-2026 was collected in April [16].

Third quarter. The Q3 2026 accounts were announced on 27-Oct-2026 after the board meeting of 26-Oct-2026 but are not yet in our corpus. The DSE announcement gives Q3 EPS of Tk 1.68 against Tk 0.81, nine-month EPS of Tk 5.07 against Tk 4.28 (+18.5%), nine-month operating cash flow per share of Tk 7.76 against Tk 5.68, and NAV per share of Tk 32.13 at 30-Sep-2026 [16]. The company attributed the higher EPS to 'increase of premium income & reduce of agency commission compared to July-September 2025' [16]. The quarterly EPS figures add up: Q1 Tk 1.84 + Q2 Tk 1.55 + Q3 Tk 1.68 = Tk 5.07 [21].

Derived quarters. Q4 2025 EPS was Tk 0.89 (full-year Tk 5.17 less nine-month Tk 4.28) and Q4 2024 Tk 1.26 (Tk 4.29 less Tk 3.03) [21] [16]. Q1 2026 profit after tax was Tk 73.7m [8 p.25]. In Tk terms Q4 2025 profit after tax was Tk 35.5m, the 2025 total of Tk 206.6m less the nine-month Tk 171.1m [1 p.10] [9 p.1].

SKS owns 60%; seven of nine directors are SKS nominees; 15% cash dividend for 2024 and 2025

Ownership. SKS holds 24.0m shares (60.00%), the general public 11.29m (28.22%) and institutions 4.71m (11.78%) [1 p.30]. The CEO and senior executives hold no shares [1 p.31].

Board. The board has nine non-executive directors: seven nominated by SKS, all serving senior officers of the armed forces, and two independent directors, Kazi Ahmad Pervez and Dr. Shakila Yasmin [10 p.4] [1 p.30]. The company announced on 30-Sep-2025 that the board had elected Major General Md Sajjad Hossain as chairman [16]. The managing director and CEO is Brig Gen Shafique Shamim, psc (Retd) [1 p.31]. Directors were paid Tk 0.53m in meeting fees in 2025 under IDRA's cap of Tk 8,000 per meeting [1 p.42].

Dividends. The board recommended a 15% cash dividend for 2025 at its meeting of 16-Feb-2026, with a record date of 9-Mar-2026 and the 13th AGM on 31-Mar-2026; the company announced the disbursement on 27-Apr-2026 [11 p.1] [16]. For 2024 the dividend was also 15% cash, recommended at the board meeting of 5-Feb-2025 with the AGM on 24-Mar-2025 [2 p.48] [16].

Ratings. The rating table in the notes shows the long-term rating rising from A- in 2017 to AAA in 2024 and 2025 [1 p.45]. Alpha Credit Rating's June 2025 letter gives AAA long term and ST-1 short term with a stable outlook, valid to 10-Jun-2026 [12 p.2], and the company announced on 11-Jun-2026 that Alpha had reaffirmed AAA/ST-1 with a stable outlook on the 2025 accounts [16].

Board decisions in the last 24 months. Our sweep of the DSE news archive from November 2024 to October 2026 found two capital decisions, both land purchases at Rupganj subject to IDRA approval, and no rights issue, bond issue or new business line [16]. The February 2025 post does not date the decision; the board met on 5-Feb-2025 [16]. We found no DSE post reporting IDRA's decision on either purchase, so their status is unknown to us. On 18-Aug-2026 the company told the DSE, in reply to a query about an unusual price rise and trading volume, that it had no undisclosed price-sensitive information [16].

What will move the lines next: the FY2026 accounts, claims reserves, no agency commission, deposit rates and LDC graduation in 2029

Agency commission (expense line, down). With individual agent licences suspended from 1-Jan-2026 [18], agency commission was nil in H1 2026 [7 p.8]. In 2025 it was Tk 107.8m, 21.3% of net premium [21]. The company already credits lower agency commission for its higher Q3 2026 EPS [16]. Whether premium volume holds up without agents is not yet visible; the reserve for exceptional losses implies H1 2026 gross premium about 9.2% lower [21].

Claims (claims line, direction not known). Outstanding claims rose by Tk 159.5m in H1 2026 to Tk 523.7m [7 p.2]. The FY2026 revenue accounts will show how much was paid and how much of the reserve was released or added, the same mechanism that cut 2025 claims by Tk 60.0m in miscellaneous [1 p.32].

Deposit income (investment line). Fixed deposits stood at Tk 1,427.3m at 30-Jun-2026 [7 p.3]. Each 1pp of deposit yield moved pre-tax income by about Tk 12.8m on the 2025 balance [21]. Interest income in H1 2026 was 9.7% higher than a year earlier [7 p.4].

LDC graduation (premium lines, indirect). The UN General Assembly adopted Bangladesh's move from least-developed-country status on 24-Nov-2029 instead of 24-Nov-2026; the resolution was adopted on 29-Oct-2026 in New York (30-Oct in Dhaka) [19] [20]. The effect on SIPLC would come through import and industrial activity, which drive marine and fire premium; we have no company statement on it.

Already passed, outcome unknown. The two Rupganj land purchases were decided subject to IDRA approval (posted 6-Feb-2025; board of 16-Feb-2026) [16] [11 p.1]; we have found no announcement of IDRA's decision. The Q3 2026 results were announced on 27-Oct-2026 and are covered in the text above.

Risks: claims volatility on a small net book, deposit concentration, premium without agents, and reinsurance dependence

Claims volatility. Net premium is a third of gross premium, so a claim retained on a large fire, aviation or engineering risk moves the net claims ratio by many points. The ratio has run from 9.1% to 59.1% over seven years and from 36.8% to 73.7% between H1 2025 and H1 2026 [21]. The 2025 result included a Tk 60.0m release of miscellaneous outstanding claims [1 p.32].

Deposit concentration. Tk 535.9m, 40.9% of fixed deposits, is with one bank, and the top three institutions hold 63.3% [1 p.38] [21]. Fixed deposits are 64.3% of total assets [21]. Any loss of access to a large deposit would hit both investment income and capital.

Premium without agents. The suspension of individual agent licences from 1-Jan-2026 removed a cost line [18] [7 p.8]; the implied 9.2% fall in H1 2026 gross premium is the first sign of the volume effect [21].

Reinsurance. SIPLC ceded 66.3% of 2025 gross premium [21]. Reinsurance commission of Tk 75.5m was 14.9% of net premium [1 p.14] [21]; lower commission rates or higher reinsurance costs would move the expense ratio directly, and in H1 2026 reinsurance commission fell 17.7% [21].

Tax and regulation. Income-tax assessments for 2015-2024 are open and a Tk 10.8m VAT claim is pending [1 p.37] [1 p.47]. The low effective tax rate depends on the deductibility of the reserve for exceptional losses under the Income Tax Act 2023 [1 p.31].

Market facts. The shares closed at Tk 133.1 on 29-Oct-2026, against Tk 53.4 a year earlier, with a 52-week range of Tk 42.1 to Tk 166.2 [17]. At that close the shares traded at 25.7 times 2025 EPS, 22.3 times the last four quarters' EPS (Tk 5.96), 4.14 times the 30-Sep-2026 NAV per share and a 1.1% yield on the 2025 dividend; at the end of 2024 and 2025 the price was 10.0 and 10.2 times that year's EPS [17] [16] [21]. These multiples are stated as facts, with no conclusion drawn from them.

Seven-year history

Figures for 2019-2020 are from the 2020 accounts (2019 as restated there), 2021-2022 from the 2022 accounts, 2023 from the 2024 accounts and 2024-2025 from the 2025 accounts, which restated 2024 total assets [6 p.10] [4 p.7] [2 p.10] [1 p.8]. Gross premium by class for 2021-2025 is read from the reserve-for-exceptional-losses tables, which set aside 10% of each class's premium (2022 and 2024 are the printed reserve amounts divided by 10%); the totals agree with the XL form and the company's highlights where both exist [1 p.31] [1 p.48] [6 p.47] [10 p.16]. EPS is as reported in the company's highlights [10 p.16]. The company printed NAV per share of Tk 26.99 for 2021 [10 p.16]; on 40.0m year-end shares equity gives Tk 18.71 [21]. We do not have the 2019 EPS on a comparable basis.

FAQ

Who owns Sena Insurance?

Sena Kalyan Sangstha, the welfare organisation of the Bangladesh Armed Forces, holds 60.00% of the 40.0m shares. The general public holds 28.22% and institutions 11.78%. Seven of the nine directors are SKS nominees.

Why did Sena Insurance's profit rise in 2025?

Profit after tax rose 20.3% to Tk 206.6m (EPS Tk 5.17). Investment and other income rose 19.3% to Tk 161.5m and underwriting profit rose 7.3% to Tk 110.8m. Net claims fell from Tk 176.2m to Tk 120.1m, helped by a Tk 60.0m fall in miscellaneous outstanding claims, while agency commission and management expenses rose.

How much of its premium does Sena Insurance keep?

33.7% in 2025: it wrote Tk 1,502.6m of gross premium and ceded Tk 996.9m to reinsurers. Retention was 51.3% in 2020.

What happened to Sena Insurance's claims in 2026?

Net claims incurred in H1 2026 were Tk 190.4m against Tk 94.1m in H1 2025, and outstanding claims rose to Tk 523.7m at 30 June. Profit after tax for the half fell 2.2% to Tk 135.7m. The DSE-announced nine-month EPS was Tk 5.07 against Tk 4.28.

What dividend did Sena Insurance pay for 2025?

15% cash, Tk 1.50 a share and Tk 60.0m in total, 29% of EPS. It was recommended on 16-Feb-2026 and the company announced the disbursement on 27-Apr-2026.

Where does Sena Insurance keep its money?

Mainly in bank and finance-company fixed deposits: Tk 1,309.0m at end-2025, 64.3% of total assets. Trust Bank PLC held Tk 535.9m of that. It also holds Tk 166.9m of government treasury bonds and Tk 188.7m of investment property.

Sources

1. Sena Insurance PLC auditor's report and financial statements 2025 (corpus SIPLC_ANNUAL_2025, PDF page numbers) · link · accessed 2026-11-01
2. Sena Insurance PLC auditor's report and financial statements 2024 (SIPLC_ANNUAL_2024) · link · accessed 2026-11-01
3. Sena Kalyan Insurance Company Limited financial statements 2023 (SIPLC_ANNUAL_2023) · link · accessed 2026-11-01
4. Sena Kalyan Insurance Company Limited financial statements 2022 (SIPLC_ANNUAL_2022) · link · accessed 2026-11-01
5. Sena Kalyan Insurance Company Limited financial statements 2021 (SIPLC_ANNUAL_2021) · link · accessed 2026-11-01
6. Sena Kalyan Insurance Company Limited financial statements 2020 (SIPLC_ANNUAL_2020) · link · accessed 2026-11-01
7. Sena Insurance PLC un-audited second-quarter financial statements to 30-Jun-2026 (SIPLC_QUARTERLY_Q2_2026) · link · accessed 2026-11-01
8. Sena Insurance PLC un-audited first-quarter financial statements to 31-Mar-2026 (SIPLC_QUARTERLY_Q1_2026) · link · accessed 2026-11-01
9. Sena Insurance PLC un-audited third-quarter financial statements to 30-Sep-2025 (SIPLC_QUARTERLY_3_2025) · link · accessed 2026-11-01
10. Sena Insurance PLC company profile with operational and financial highlights 2020-2024 (SIPLC_DOC_2025) · link · accessed 2026-11-01
11. Sena Insurance PLC price-sensitive information, board meeting of 16-Feb-2026 (SIPLC_PSI_2026) · link · accessed 2026-11-01
12. Alpha Credit Rating PLC rating letter to Sena Insurance PLC, 18-Jun-2025 (SIPLC_RATING_2025) · link · accessed 2026-11-01
13. City Insurance PLC Annual Report 2025, consolidated revenue account (peer; CITYGENINS_ANNUAL_2025 p.394) · link · accessed 2026-11-01
14. Reliance Insurance PLC Annual Report 2025, summary of accounts (peer; RELIANCINS_ANNUAL_2025 p.86) · link · accessed 2026-11-01
15. Pioneer Insurance PLC Annual Report 2025, financial ratios and five-year summary (peer; PIONEERINS_ANNUAL_2025 p.11) · link · accessed 2026-11-01
16. DSE news archive for SIPLC, 1-Nov-2024 to 31-Oct-2026 (board meetings, results, dividends, land decisions, ratings) · link · accessed 2026-11-01
17. AnalystBro market data: DSE daily and monthly bars for SIPLC to 29-Oct-2026 · link · accessed 2026-11-01
18. The Business Standard, 'IDRA scraps commission payments in non-life insurance sector', 24 Dec 2025 · link · accessed 2026-11-01
19. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation', 30 Oct 2026 · link · accessed 2026-11-01
20. The Business Standard, 'Bangladesh gets 3 more years for LDC graduation', 30 Oct 2026 · link · accessed 2026-11-01
21. AnalystBro history and ratio model for SIPLC (model.xlsx, the workbook below) · link · accessed 2026-11-01