Sonar Bangla Insurance financial analysis: combined ratio 94.2% and qualified 2025 audit (Oct 2026)

Investment considerations: qualified 2025 audit; consolidated EPS Tk 0.69; combined ratio 94.2%, the highest of 10 general insurers compared

What it is. Sonar Bangla Insurance Limited (DSE: SONARBAINS) is described in its 2025 annual report as 'a Non-Life Insurance Company, incorporated as a Public Ltd. Company in Bangladesh in the year 2000', listed on the Dhaka and Chittagong stock exchanges and carrying 'its insurance activities through 32 branches spread-over the Country' [1 p.4]. It was incorporated on 14 March 2000, registered with the insurance controller on 26 April 2000 and first traded on DSE on 15 January 2006 [1 p.12]. It owns two subsidiaries, Sonar Bangla Capital Management Ltd. and SBI Securities Ltd. [1 p.4], held at 66.80% and 52.00% [1 p.77].

Where it stands. Gross premium was Tk 695.0m in 2025 against Tk 645.5m in 2024 [1 p.126]. After Tk 255.9m of re-insurance, premium less re-insurance was Tk 439.1m against Tk 492.3m [1 p.126]. Net claims were Tk 159.6m against Tk 158.9m, agency commission Tk 94.3m against Tk 82.5m and revenue-account management expenses Tk 211.7m against Tk 189.8m [1 p.94]. Profit transferred from the revenue accounts was Tk 47.3m against Tk 84.4m [1 p.94]. The company's own net profit before tax was Tk 77.9m against Tk 102.7m and its printed EPS Tk 1.19 against Tk 1.56 [1 p.90] [1 p.91]; the consolidated figure, after the subsidiaries, was Tk 0.69 against Tk 0.20 [1 p.85].

Shareholder returns in the filings. In 2025 the company's profit and loss account received Tk 47.3m from the revenue accounts, Tk 36.5m of interest income, Tk 0.2m of cash dividends and a Tk 4.4m gain on fixed assets [1 p.91]. Underwriting profit was 60.7% of company profit before tax [21]. Company profit after tax, net profit before tax less current and deferred tax, was Tk 53.9m in 2025 against Tk 78.6m [21]. Over average company net assets that is 6.0%, against 8.9% in 2024; the consolidated attributable earnings of Tk 29.2m are 3.4% of average consolidated net assets [21]. The board recommended 5% cash and 5% stock for 2025 [17]; note 42 adds that the dividend is for 'the Shareholders excluding sponsor Shareholders' [1 p.131].

• Agency commission after 2025. Where: the FY2026 revenue accounts; H1 2026 prints a dash for agency commission against Tk 40.5m in H1 2025.
• Net claims. Where: FY2026 revenue accounts and note 13; H1 2026 'Claim Less Re-insurance' was Tk 83.5m against Tk 63.5m.
• Subsidiary losses. Where: consolidated 'OTHER INCOME' and note 8.D (non-controlling interest) in the FY2026 accounts.
• The audit qualifications. Where: the FY2026 auditor's report; the FDR interest (Tk 1.8m) and the WPPF/welfare fund bases were both in the 2025 report.
• The LPC account and advance tax. Where: note 20 in the FY2026 accounts (Tk 63.0m and Tk 161.5m at 31-Dec-2025).

Business: fire 54.4% of 2025 gross premium, marine cargo 33.1%, miscellaneous 7.8%, motor 4.5%

How it makes money. A Bangladeshi general insurer writes premium, cedes part of each risk to re-insurers (which pay a commission back), sets aside a reserve for the unexpired part of each policy, and pays claims, agent commission and management expenses from the rest. The company states that it 'deals in Fire, Marine, Motor' and miscellaneous insurance [1 p.24]. The underwriting result is transferred to the profit and loss account, where interest on FDRs and treasury bonds is added. Note 3.11 states that 'No operating segment is applicable for the Company as required by IFRS 8: Operating Segments, as the Company has only one operating segment' [1 p.114].

Classes. Note 26 prints 2025 fire gross premium of Tk 377.9m (54.4% of the total), of which the company kept 63.6% after re-insurance [1 p.126] [21]. Marine cargo wrote Tk 230.2m (33.1%) and kept 69.6%; motor Tk 31.5m (4.5%) and kept 93.7%; miscellaneous Tk 54.4m (7.8%) and kept 17.3% [1 p.126] [21]. Marine hull wrote Tk 1.1m and ceded Tk 1.7m, giving negative net premium of Tk -0.57m [1 p.126]. Compared with 2024, net premium from fire fell to Tk 240.5m from Tk 376.2m and net premium from marine cargo rose to Tk 160.3m from Tk 81.8m [1 p.126].

Public sector business. Note 26 splits 2025 gross premium into 'Premium Underwritten' of Tk 586.4m and 'Premium on PSB' of Tk 108.6m, and re-insurance into Tk 156.8m on cedence and Tk 99.1m on PSB [1 p.126]. The PSB premium is the company's share of public-sector business placed through Sadharan Bima Corporation; note 3.08 records it on the basis of statements received [1 p.113]. The PSB re-insurance line equals 91.2% of PSB premium [21].

Nine years of premium. The glance tables print gross premium of Tk 405.3m for 2017 and Tk 695.0m for 2025; the highest year was 2021 (Tk 724.6m) and the lowest 2017 (Tk 405.3m) [4 p.40] [1 p.46]. Gross premium fell in 2 years (2020, 2022) and rose in 6 (2018, 2019, 2021, 2023, 2024, 2025) [21]. Retention ranged from 58.2% (2022) to 78.2% (2019) [21]. The AR2021 glance table on p.39 prints 5682 lac for 2019 gross premium and 2987 lac for 2017 net premium; p.40 prints 5680 and 2988, and this note uses p.40 [4 p.39] [4 p.40].

Subsidiaries. Note 17.03 gives the investment in subsidiaries as Tk 201.8m at both year-ends: Sonar Bangla Capital Management Ltd. at Tk 155.0m and SBI Securities Limited at Tk 46.8m [1 p.123]. Consolidated 'Expenses of Subsidiaries' were Tk 12.5m in 2025 against Tk 11.4m [1 p.84]. Consolidated other income was a loss of Tk 20.5m in 2025, made up of a realised loss on share transactions of Tk 25.7m, 'IPO Income(SBCML)' of minus Tk 1.0m and a fixed-asset gain of Tk 6.2m, against a loss of Tk 73.1m in 2024 [1 p.85]. Note 34 lists advances to the two subsidiaries of Tk 609,711 and Tk 944,093 [1 p.130].

Underwriting: combined ratio 94.2% in 2025 against 75.6%; net claims 36.3% of net premium

Claims. The consolidated revenue account prints claims paid during 2025 of Tk 162.1m, plus outstanding claims at the end of the year of Tk 17.1m, less Tk 19.6m at the end of 2024, giving 'Claims under Policies Less Re-insurance' of Tk 159.6m [1 p.94]. In 2024 claims paid were Tk 166.3m and the net figure Tk 158.9m [1 p.94]. Fire accounted for Tk 127.7m of the 2025 net claims and marine cargo Tk 32.4m [1 p.96] [1 p.98]. The miscellaneous account shows a negative claims figure of Tk -3.25m after Tk 3.6m of opening outstanding claims fell to nil [1 p.104].

Outstanding claims. Note 13 gives the liability as Tk 17.1m at 31-Dec-2025: fire Tk 9.1m, marine Tk 7.5m, motor Tk 0.4m and miscellaneous nil, against Tk 19.6m a year earlier [1 p.121]. The outstanding-claims balance was 10.7% of 2025 net claims [21]. The auditor's key audit matter on this balance notes that it 'involves significant judgment and risk of understatement' [1 p.76].

Commission and expenses. Agency commission was Tk 94.3m in 2025, 21.5% of net premium, against 16.8% in 2024 [1 p.94] [21]. Revenue-account management expenses were Tk 211.7m, of which fire Tk 115.1m (54.37%) and marine cargo Tk 70.1m (33.12%); in 2024 fire carried 71.82% and marine cargo 14.85% [1 p.126]. Commission on re-insurance ceded was Tk 52.0m against Tk 58.9m [1 p.95]. IDRA's circular abolishing non-life agent commission from 1 January 2026 was reported by The Business Standard [18]; the H1 2026 accounts print a dash for agency commission [5 p.2]; the filings do not link them.

One combined-ratio definition. This note uses one definition throughout: net claims plus revenue-account management expenses (with stamp duty where a company prints it separately) plus agency commission less commission on re-insurance ceded (including profit commission), over net premium. On that basis Sonar Bangla's combined ratio was 78.8% in 2020, 67.5% in 2021, 83.6% in 2022, 74.4% in 2023, 75.6% in 2024 and 94.2% in 2025 [21]. The highest year was 2025 and the lowest 2021 [21]. The 2020 and 2021 inputs come from the value added statement in the 2021 report, which prints premium income, re-insurance, management expenses, agency commission, net claims and commission on re-insurance ceded for both years [4 p.57].

Underwriting result. Profit transferred from the revenue accounts was Tk 47.3m in 2025, Tk 84.4m in 2024, Tk 79.9m in 2023 and Tk 107.2m in 2022 [1 p.94] [3 p.89]. By class, fire made Tk 22.8m in 2025 against Tk 39.6m, marine cargo Tk 14.8m against Tk 40.7m, motor Tk 9.0m against Tk 9.2m, marine hull Tk 0.4m against a loss of Tk 1.0m and miscellaneous Tk 0.4m against a loss of Tk 4.2m [1 p.91]. The fire revenue account prints an opening reserve for unexpired risks of Tk 150.5m and a closing balance of Tk 96.2m [1 p.96] [1 p.97].

Claims over nine years. On the glance-table basis, net claims ranged from 17.6% of net premium (2019) to 36.3% (2025) [4 p.40] [1 p.46] [21]. Net claims were Tk 158.8m in 2024 and Tk 159.6m in 2025, against Tk 86.2m printed for 2017 [4 p.40] [1 p.46].

Investments: FDRs Tk 348.1m and treasury bonds Tk 77.6m at 31-Dec-2025; company interest income Tk 36.5m

Where the money sits. At 31-Dec-2025 the company's cash and cash equivalents were Tk 371.1m: fixed deposits Tk 348.1m, STD and CD accounts Tk 22.0m and cash in hand Tk 1.0m [1 p.124]. Investments were Tk 292.2m: treasury bonds at cost Tk 77.6m, listed shares at fair value Tk 12.9m and the two subsidiaries Tk 201.8m [1 p.122]. Note 17.01 states the bonds are 'lying with Bangladesh Bank as statutory deposit required Section-7(1) of Insurnace Act, 2010' [1 p.123].

Interest income. Note 24 prints company interest of Tk 36.5m in 2025 against Tk 33.5m: on 'FDR & Others' Tk 28.2m against Tk 28.1m, on treasury bonds Tk 8.1m against Tk 5.1m and on STD and SND accounts Tk 0.2m against Tk 0.3m [1 p.125]. Consolidated interest was Tk 44.8m, of which subsidiaries Tk 8.3m [1 p.125]. Accrued interest receivable was Tk 27.3m at 31-Dec-2025 against Tk 26.5m [1 p.123].

The lien and the qualified basis. Note 11 shows an SOD loan of Tk 49.5m at 31-Dec-2025 against Tk 49.5m, and states: 'The above Loan lien against the FDR with the Islamic Bank Bangladesh Limited, the Bank has Charged Interests after netting off the FDR Interests Income.' [1 p.120]. The auditor's first basis for qualification states that the company 'has taken a loan of Tk. 49,513,755 against 18 FDRs on its 90% liened with Islami Bank Bangladesh PLC. Therefore, no interest has been accrued against these FDRs (10% of total lien), although the bank statement shows interest of Tk. 1,778,583 on the FDRs. So, the assets are understated by TK. 1,778,583.' [1 p.72]. Note 41 states that 'There was no credit facility available to the company under any contract availed of as on 31st December,2025 other than trade credit available in the ordinary course of business' [1 p.131].

Listed shares. The company's share portfolio fell to Tk 12.9m from Tk 13.3m through an unrealised loss of Tk 0.5m, with no purchases or sales in either year [1 p.123]; in 2024 the unrealised loss was Tk 4.2m [1 p.123]. The subsidiaries held Tk 18.3m of shares at 31-Dec-2025 against Tk 25.4m [1 p.123]. The FDR-and-bond line in the glance tables was Tk 425.6m for 2025 against Tk 274.5m for 2017, 33.3% of total assets [4 p.40] [1 p.46] [21].

Ratios: company PAT 6.0% of average net assets in 2025; underwriting profit 60.7% of company pre-tax profit

Two bases. The company prints separate and consolidated statements. The five-year table (EPS Tk 1.19, NAV Tk 21.63 for 2025) is on the separate basis [1 p.46] [1 p.89]; DSE's quarterly posts quote consolidated EPS and NAV [17]. On the separate basis net profit before tax was Tk 77.9m in 2025; on the consolidated basis the net profit transferred to the appropriation account was Tk 49.0m [1 p.90] [1 p.84].

How EPS is built. Note 31 deducts from company pre-tax profit the current and deferred tax of Tk 24.0m and a further 'Tax on Reserve for Exceptional Losses' of Tk 3.8m, giving 'Earnings Attributable to Shareholders' of Tk 50.2m and EPS of Tk 1.19 on 42,043,517 shares [1 p.128]. The consolidated calculation starts from Tk 49.0m, deducts Tk 25.9m of tax and the same Tk 3.8m, and adds back Tk 9.8m of non-controlling interest, giving Tk 29.2m and EPS of Tk 0.69 [1 p.128]. Note 31 states: 'Decrease in Earning Per Share arises due to increase in Management Expenses.' [1 p.128].

Returns. Company profit after tax over average company net assets was 8.8% in 2023, 8.9% in 2024 and 6.0% in 2025 [21]. On the consolidated basis, attributable earnings over average consolidated net assets were 1.9%, 1.0% and 3.4% [21]. The consolidated appropriation account prints non-controlling interest of Tk -9.8m for 2025 and Tk -25.7m for 2024 [1 p.84].

Earnings per share over nine years. EPS as printed 'considering the present Number of Shares' was Tk 1.30 for 2017 and Tk 1.19 for 2025; the highest was Tk 2.08 (2021) and the lowest Tk 1.19 (2025) [4 p.40] [1 p.46]. Net profit before tax fell in 4 of the 8 years from 2018 to 2025 (2021, 2022, 2023, 2025) [21]. The 2017-2021 figures are on 40.04m shares and the 2021-2025 figures on 42.04m shares, as each table states [4 p.40] [1 p.46].

Tax. Note 14.01.1 computes 2025 tax at 37.5% on business income of Tk 63.8m after deducting the exceptional-loss reserve, 20% on dividend income and 15% on the capital gain, a total of Tk 24.6m [1 p.122]. Note 16 shows a deferred tax liability of Tk 6.1m on a Tk 16.2m gap between accounting and tax written-down values of fixed assets [1 p.122]. Note 14.01 adds the year's provision to the liability for taxation, Tk 90.8m at 31-Dec-2025, with nil 'Paid and adjusted during the year'; note 20.01 adds Tk 26.1m of advance tax paid to an advance of Tk 161.5m, also with nil adjusted [1 p.121] [1 p.124].

Cash conversion. Company net operating cash flow was Tk 54.5m in 2025 and Tk 42.3m in 2024, 1.01 and 0.54 times company profit after tax [1 p.128] [21]. The 2025 reconciliation shows a Tk 24.0m inflow from the fall in amounts due from other insurers and a Tk 21.9m outflow from the fall in the balance of fund [1 p.128]. Consolidated net operating cash flow was Tk 51.2m (Tk 1.22 a share) against Tk 49.2m (Tk 1.17) [1 p.129].

Peers: combined ratio 94.2%, the highest of 10 general insurers on one definition

Set and basis. The comparison uses ten general insurers' 2025 revenue accounts, each read from its own filing: Sonar Bangla and nine peers with published AnalystBro notes (Rupali, Crystal, Karnaphuli, Peoples, Nitol, Islami, Eastland, Central and Asia) [1 p.94] [6 p.141] [7 p.13] [8 p.181] [9 p.264] [10 p.189] [11 p.110] [12 p.152] [12 p.153] [13 p.11] [14 p.178] [15]. All use calendar 2025 and the consolidated (or company) revenue account, which carries the insurance business only. Two of the ten have modified 2025 opinions: Sonar Bangla (qualified) [1 p.72] and Central (adverse, per its published note) [15].

Where Sonar Bangla sits. Its 2025 combined ratio of 94.2% was the highest of 10 [21]; the next highest was Karnaphuli at 82.2%. Excluding Central (adverse opinion), it was the highest of 9. Its claims ratio of 36.3% ranked the highest of 10, and its expense ratio of 57.9% the seventh lowest of 10 [21]. The three lowest combined ratios were Peoples (63.7%), Islami (67.7%), Crystal (70.9%) [21].

Printed labels. Each company prints its own line names. Sonar Bangla prints 'Premium Less Re-insurance', 'Claims under Policies Less Re-insurance', 'Agency Commission', 'Management Expenses' and 'Commission on Re-Insurance Ceded' [1 p.94] [1 p.95]. Crystal prints a separate 'Stamp duty' of Tk 4,870 and Asia an 'Insurance Stamp Consumption' of Tk 2.56m, both added to management expenses here [7 p.13] [14 p.178]. Nitol prints 'Profit Commission' of Tk 20.9m and Asia Tk 3.6m, both added to re-insurance commission [10 p.189] [14 p.178]. Rupali prints 'Commission (Net)' and 'Claim settle and provided (Net)'; its re-insurance commission here is commission paid on direct business less net commission [6 p.141]. Peoples and Eastland print negative net claims for 2025 [9 p.264] [12 p.152].

Size. Sonar Bangla's net premium of Tk 439.1m was the sixth largest of the ten [21]. Its agency commission of Tk 94.3m was 21.5% of net premium [21].

Balance sheet and audit: qualified 2025 opinion with two company bases, qualified subsidiary audits and four emphasis paragraphs

The 2025 opinion, word for word. A. Hoque & Co. (Md. Iqbal Hossain, FCA; report dated 20.05.2026) writes: 'In our opinion, except for the possible effect of the matter described in the Basis for Qualified Opinion section of our report, the accompanying consolidated financial statements and the separate financial statements present fairly, in all material respects, the financial position of the company as at 31st December, 2025, and its financial performance and its cash flows for the year then 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.72] [1 p.81].

Company bases for qualification. 'Interest Accrued But not Due: The Company has taken a loan of Tk. 49,513,755 against 18 FDRs on its 90% liened with Islami Bank Bangladesh PLC. Therefore, no interest has been accrued against these FDRs (10% of total lien), although the bank statement shows interest of Tk. 1,778,583 on the FDRs. So, the assets are understated by TK. 1,778,583.' and 'Employees Benefit: The company has not maintained the Employees Benefit Fund like Worker's Profit Participation Fund (WPPF) and the Welfare Fund which are a non-compliance as per requirement of Section 234 of the Bangladesh Labor Act, 2006, as mentioned in last year's audit report.' [1 p.72].

Emphasis of matter, word for word. 'Fixed Assets: We draw attention to the note no 22.00 of the financial statement regarding Fixed Assets amounting to BDT. 50,614,326. The Company has maintained Fixed Assets Register are not properly and thus we could not confirm this amount of Fixed Assets as at 31st December, 2025. Our opinion is not modified in respect of this matter.' 'Cash in Hand: We draw attention to the Cash & Cash Equivalent's Note no. 21.00 which is amounting to BDT. 371,115,951 which includes cash in hand amounting to TK. 1,022,765. We have completed the physical count of cash in hand at the head office and 4 out of 32 branches as on 01 January 2026. After visiting the branches, we found that none of the branches except the head office had updated the cash books. Due to which we were unable to verify the cash balance. Our opinion is not modified in respect of this matter.' [1 p.74].

'Claim Settlement: In course of checking the documents relating to Claim settled which has been adjusted with premium income for 02 fire claim and 01 marine cargo claim. Our opinion is not modified in respect of this matter.' 'Unclaimed or Unpaid Dividend: We draw attention to the note no 15.00 of the financial statement regarding Unclaimed Dividend or unpaid Dividend amounting to BDT. 1,874,028.We observed that at the end of the year the unclaimed dividend is BDT. 1,874,028 but in the Dividend account (Prime Bank PLC.-A/C-21043130131940) outstanding balance is BDT.1,690,028 at the end of the year. The shortage amount is BDT. 184,000.00. where the balance of the unclaimed or unpaid dividend account and the dividend account (bank) should be equal. Our opinion is not modified in respect of this matter.' [1 p.75]. The Other Matter paragraph states that the subsidiaries' auditor, also A. Hoque & Co., 'expressed modified Sonar Bangla Capital Management Limited and modified SBI Securities Limited opinions respectively on that financial statements as on 31st December, 2025 with an emphasis of matter in case of SBI Securities Limited.' [1 p.75].

Company explanation and the 2024 report. The directors' report states that the 'board of directors of the company is aware of the qualified opinion and emphasis of matter in the external auditor's report' [1 p.34]. DSE posted on 7-Jul-2025 that the auditor gave 'Qualified Opinion', 'Emphasis of Matter' and 'Other Matter' paragraphs on the 2024 accounts, and on 13-Jul-2026 that the 2025 report carries a basis for qualified opinion and emphasis of matter [17]. The 2024 report, also by A. Hoque & Co., states: 'In our opinion, except for the possible effect of the matter described in the Basis for Qualified Opinion section of our report, the accompanying consolidated financial statements and the se perate financial statements present fairly, in all material respects, the financial position of the company as at 31st December, 2024, and its financial performance and its cash flows for the year then 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.' It gives one company basis: 'The company has not maintained the Employees Benefit Fund like Wokers Profit Participation Fund (WPPF) and Welfare Fund which is a non-compliance as per requirement of Section 234 of the Bangladesh Labor Act, 2006.' Its emphasis of matter reads in full: 'In course of checking the documents relating to Claim Paid which has been adjusted with premium income.' [2 p.71]. It quotes G. Kibria & Co.'s bases on Sonar Bangla Capital Management: 'The company reported the Market Value of Investment in Share BDT. 25,361,227. However the market value as per the Investment Portfolio Statement was BDT. 21,061,328 as at 31st December, 2024. Additionally, against the balance of advance to securities house disclosed in note no. 6.00, the actual balance was found BDT. 31,068. Furthermore, the amount of loss in share (note 6.00) and the investment income reported in statement of profit or loss agree with the portfolio statement.'; 'the Company reported a balance of Accounts Payable to clients BDT. 3,877,210 as of 31st December, 2024. However, they were unable to provide sufficient and appropriate audit evidence to verify this balance. Additionally, a balance of Accounts Receivable BDT. 1,000,000 for carried forwarded for several years without providing justifications.'; and 'The Company didn't provide detail disclosure of Capital Adequacy Ratio incompliance with Bangladesh Securities and Exchange Commission (Risk Based Capital Adequacy) Rules, 2019 via BSEC notification no. BSEC/CMRRCD/2017-357/221/Admin/89, dated 22nd May, 2019. Furthermore, the Company has not presented any document related to the Annual General Meeting (AGM) since 2022.' [2 p.71]. The Other Matter paragraph states that G. Kibria & Co. 'expressed modified Sonar Bangla Capital Management Limited and unmodified SBI Securities Limited opinions respectively on that financial statements as on 31st December, 2024 with an emphasis of matter in case of SBI Securities Limited.' [2 p.72]. The 2023 revenue account was 'Signed in terms of our separate qualified report' by Malek Siddiqui Wali [3 p.90].

Receivables. Amounts due from other insurers were Tk 277.4m at 31-Dec-2025 against Tk 301.5m, 21.7% of total assets [1 p.123] [21]. Sundry debtors of Tk 243.6m include advance company tax Tk 161.5m, 'LPC Account' Tk 63.0m, 'Re-Insurance portfolio losses' Tk 8.5m and 'Agent Balance' Tk 1.3m, the last three printed at the same figures for both year-ends [1 p.124]. Note 45 prints receivables 'More than 12 Months' of Tk 9.4m under column headings '31.12.2024' and '31.12.2023' [1 p.133], and note 46 states 'There were no such debts which considered to be doubtful.' [1 p.133].

Recent quarters: H1 2026 consolidated pre-tax profit Tk 36.4m against Tk 60.7m; nine-month 2026 EPS Tk 1.07 against Tk 1.25 (DSE)

H1 2026. The un-audited consolidated statement for January-June 2026 shows premium less reinsurance of Tk 167.1m against Tk 230.1m in H1 2025, a change of -27.4% [5 p.2] [21]. Claim less re-insurance was Tk 83.5m against Tk 63.5m, 50.0% of premium less reinsurance against 27.6% [5 p.2] [21]. Agency commission is printed as a dash against Tk 40.5m and management expenses were Tk 85.2m against Tk 109.8m [5 p.2]. The H1 2025 column includes Tk 8.0m 'Brought forward from Reserve for Exceptional Losses' [5 p.2].

Company basis. The separate H1 2026 statement shows net profit before tax of Tk 42.6m against Tk 59.2m and net profit after tax of Tk 26.9m against Tk 37.4m [5 p.6] [5 p.7]. Company NAV was Tk 22.27 at 30-Jun-2026 against Tk 21.63 at 31-Dec-2025, and consolidated NAV Tk 20.54 against Tk 20.02 [5 p.1] [5 p.6]. Investment and other income on the company basis was Tk 8.7m against Tk 13.3m; the consolidated line was Tk 4.7m against Tk 19.4m [5 p.2] [5 p.6].

DSE-posted quarters. DSE posted consolidated EPS of Tk 0.26 for January-March 2026 (Tk 0.44 a year earlier), Tk 0.26 for April-June (Tk 0.45) and Tk 0.57 for July-September (Tk 0.41 in the 2026 post) [17]. The nine-month post gives Tk 1.07 against Tk 1.25, NOCFPS Tk 1.23 against Tk 0.44, and NAV Tk 19.55 at 30-Sep-2026 against Tk 20.02 at 30-Sep-2025 [17]. The three 2026 quarterly posts add to Tk 1.09 against the Tk 1.07 nine-month figure [21]. The Q3 2025 post (29-Oct-2025) gave Tk 0.43 for July-September 2025, Tk 1.31 for nine months and NAV Tk 20.18 at 30-Sep-2025 [17]; full-year 2025 consolidated EPS of Tk 0.69 less the posted Tk 1.31 gives Tk -0.62 for October-December 2025 (derived) [17] [21].

Governance and dividends: sponsors 39.52% at 31-Dec-2025; 20-member board met 5 times; 5% cash and 5% stock for 2025

Ownership. Note 7 gives the holding at 31-Dec-2025 as sponsors 16,615,504 shares (39.52%), institutions 3,921,710 (9.33%) and public 21,506,303 (51.15%) [1 p.118]. The pattern-of-shareholding page lists 16 director and nominee holdings that add to 16,615,504 shares and prints the total as 39.52%; it prints '578%' for Modern Washing & Dyeing Ind. Ltd. and '271%' for Al-haj Md. Ruhul Amin, and nil holdings for the four independent directors, the CEO, CFO, company secretary and head of internal audit [1 p.44]. The same page prints 'General Public/ Institution' at 2,54,28,013 shares (60.48%) [1 p.44].

Board and attendance. Note 43 lists 20 directors, including 4 independent directors, each against 5 meetings; 13 attended all five [1 p.132]. Attendance below five: Sheikh Kabir Hossain (1 of 5); Mrs. Shahida Alamin (4 of 5); Al-haj Md. Shamsul Haque (3 of 5); Mr. Rajjab Sharif (1 of 5); Mrs. Fahmida Waliullah (3 of 5); Mrs. Badrun Nessa (3 of 5); no attendance figure is printed for Mr. Md. Haroon Kamal [1 p.132]. Mr. Md. Motaleb Hossain was appointed Chairperson (DSE, 23-Oct-2025) [17]. The directors' report states that Sheikh Kabir Hossain, 'Honorable Entrepreneurial Director and former Chairperson of the company, passed away on 14/02/2026' [1 p.30]; DSE posted the completed transmission of 1,126,535 of his shares to his nominee, Mrs. Masuda Kabir, on 9-Jul-2026 and of a further 56,326 shares on 17-Sep-2026 [17]. The company-information page spells the chairperson 'Md. Motaleb Hossen' [1 p.4].

Committees and independent directors. The audit committee is chaired by Mr. Shahidul Islam Niru, Vice-Chairperson and Independent Director, with Mrs. Shahida Alamin, Al-haj Md. Ruhul Amin, Mr. Delowar Hossain Raja, Mr. Md. Belal Hossain and Mr. Sumit Kumar Barai as members [1 p.21]. The audit committee report prints 4 meetings and attendance: Mr. Shahidul Islam Niru 4/4, Mrs. Shahida Alamin 3/4, Al-haj Md. Ruhul Amin 4/4, Mr. Md. Belal Hossain 4/4, Mr. Sumit Kumar Barai 3/4 and Mr. Delowar Hossain Raja 2/4 [1 p.67]. The NRC held 2 meetings: Dr. Shariff Enamul Kabir (Chairperson) 2/2, Mr. Shahidul Islam Niru 2/2, Mrs. Shahida Alamin 1/2, Al-haj Md. Ruhul Amin 2/2, Mr. Abul Kalam Azad (nominated by Modern Washing & Dyeing Ind. Ltd.) 2/2 and Mr. Md. Belal Hossain 2/2 [1 p.69]. The Policyholder Protection & Compliance Committee is chaired by Mr. Md. Abul Kalam Azad, with Mr. Shahidul Islam Niru, Mrs. Shahida Alamin, Al-haj Md. Ruhul Amin, Mr. Kailash Chandra Barai and Mrs. Badrun Nessa [1 p.21]. The Investment Committee is chaired by Mr. Md. Delowar Hossain Raja, with Mr. Shahidul Islam Niru, Mrs. Shahida Alamin, Al-haj Md. Ruhul Amin, Mr. Md. Abul Kalam Azad and Al-haj Md. Shamsul Haque; the Risk Management Committee is chaired by Al-haj Md. Ruhul Amin, with Mr. Shahidul Islam Niru, Mr. Md. Abul Kalam Azad, Mr. Ganga Charan Malakar, Mr. A. N. M. Rezwanul Quayum and Mr. Sumit Kumar Barai [1 p.22]. The pages read print no attendance for these three committees. The directors' report states that Mr. Delwar Hossain Raja 'has passed his 02 (two) terms' and that the board appointed Mr. Nesar Ahmed as independent director for three years, subject to approval at the 26th AGM on 13/08/2026 [1 p.30]. Key management compensation in note 34 lists Md. Shamsul Huda (CEO) Tk 3,960,000, Sheikh Mosadeq Kabir (Addl. M.D.) Tk 3,728,330, Bilkis Begum Maya (Addl. M.D.) Tk 2,937,500, A.B.M. Hasahgir (D.M.D. & CFO; printed 'A.B.M. Hasangir' on the company-information page and the H1 2026 signatures [1 p.4] [5 p.7]) Tk 2,631,694, Abdur Rauf Gomosta (Asstt. M.D. & CS) Tk 1,841,086, A.M. Habibullah (Asstt. M.D.) Tk 1,482,196 and Prollad Rajbongshi (HIAC) Tk 617,085 [1 p.130]. Board fees were Tk 1.11m at Tk 8,000 per director per meeting [1 p.130].

Governance certificate and the auditor. ARTISAN's certificate dated June 01, 2026 states that 'The Company has complied with the conditions of the Corporate Governance Code' and that 'Proper books and records have been kept by the Company as required under the Companies Act, 1994, the securities laws and other relevant laws' [1 p.48]. The compliance annexure, read from the page images of p.49 to p.57, marks no condition 'Not Complied'; the remaining rows are ticked 'Complied' or marked 'N/A' or 'Not found' [1 p.49] [1 p.57]. The statutory auditor's emphasis paragraphs state that the fixed asset register is 'not properly' maintained and that branch cash books were not updated [1 p.74], and its basis paragraph cites non-compliance with Section 234 of the Bangladesh Labor Act [1 p.72]. Three ticked conditions sit beside other printed statements. Condition 1(2)(e), 'The tenure of office of an independent director shall be for a period of 3 (three) years, which may be extended for 1 (one) tenure only', is ticked complied [1 p.50]; the directors' report states that Mr. Delwar Hossain Raja 'has passed his 02 (two) terms i.e. 06 years has been completed' [1 p.30], and note 43 lists him as an independent director attending 5 of 5 meetings in 2025 [1 p.132]. Condition 1(5)(xii), 'A statement that proper books of account of the issuer company have been maintained', and 1(5)(xv), 'A statement that the system of internal control is sound in design and has been effectively implemented and monitored', are ticked complied [1 p.51]; the auditor's emphasis paragraphs state 'The Company has maintained Fixed Assets Register are not properly' and 'none of the branches except the head office had updated the cash books' [1 p.74].

Dividends. The glance tables print cash dividends of 10% for 2019, 15% for 2020 and 2021, 10% cash plus 5% stock for 2022, 10% cash for 2023 and 2024, and 5% cash plus 5% stock for 2025 [4 p.40] [1 p.46]. The 2025 declaration (DSE, 10-May-2026) set the record date at 11/06/2026 and the AGM at 13/08/2026, and states that the stock dividend is 'for re-investing retained amount to raise up the paid-up Capital' [17]. Note 42 states that the directors 'recommended 5% Stock Dividend and 5% Cash Dividend for the Shareholders excluding sponsor Shareholders' [1 p.131]; the DSE declaration does not repeat that wording [17]. DSE posted on 21-Sep-2026 that the bonus shares were credited and the cash dividend paid [17]. The 2025 appropriation account records Tk 42.0m of 'Dividend Paid', the 10% cash dividend for 2024 [1 p.90].

Capital actions and news. The company states it started with paid-up capital of Tk 6.00 crore, raised it to Tk 15.00 crore through an IPO in 2005 and has paid-up capital of Tk 42,04,35,170 [1 p.11]. Note 37 states: 'There was no commitment for capital expenditure and also not incurred or provided for the year ended 31st December, 2025.' [1 p.131]. The DSE sweep of 38 posts from 1-Nov-2024 to 1-Nov-2026 contains no rights issue, capital-expenditure, expansion or new-business approval, and 0 corrections [17].

What's next: FY2026 accounts (inferred 6-May to 12-Sep-2027), no board date notified

How the dates are built. No board-meeting date for the FY2026 accounts had been notified on DSE at 1-Nov-2026 [17]. The FY2026 range rests on four printed precedents: the board approved the FY2021 accounts at its 133rd meeting on July 28, 2022 (board date, directors' report) [4 p.24], the FY2023 statements are dated 11-Sep-2024 (statement date) [3 p.89], and the board met on 24-Jun-2025 for FY2024 and on 07-May-2026 for FY2025 (DSE board notices) [17]. The FY2025 statements carry two dates: 'Dated: 20.05.2026' beside the signatures and 'approved ... on the 07th May, 2026' [1 p.88] [1 p.89]. Each range is widened to the nearest DSE business day (Sunday to Thursday) at both ends.

Passed items. The 26th AGM was set for 13-Aug-2026 (passed); the election of a general-shareholder director and the appointment of Mr. Nesar Ahmed as independent director were on its agenda [1 p.30], outcome unknown. The Q3 2026 results were posted on 29-Oct-2026 and are covered above; the Q3 2026 statements are not in the corpus at 1-Nov-2026 [17].

LDC graduation. Bangladesh's LDC graduation date is 24-Nov-2029, following the UN General Assembly decision of 29-Oct-2026 in New York (30-Oct in Dhaka) [19] [20]. The filings read do not mention LDC graduation.

Risks: claims, audit qualifications, subsidiary losses, receivables and tax balances, each tied to a line

Claims. Net claims were 36.3% of net premium in 2025 and 32.3% in 2024, against 18.8% in 2022 [21]. In H1 2026 claims were 50.0% of premium less reinsurance against 27.6% [5 p.2] [21]. Fire carried Tk 127.7m of 2025 net claims [1 p.96].

Audit and records. The 2025 qualification covers Tk 1.78m of unaccrued FDR interest and the absence of WPPF and welfare funds; the emphasis paragraphs cover the fixed asset register (Tk 50.6m), branch cash (Tk 1.02m in hand), claims adjusted with premium income (two fire, one marine cargo) and a Tk 184,000 shortfall in the dividend bank account [1 p.72] [1 p.74] [1 p.75].

Subsidiaries. The subsidiaries' qualification paragraphs list Tk 25.8m deducted from advance to security house and charged as a loss, and a Tk 1.00m receivable charged as IPO loss [1 p.73]. Non-controlling interest fell to Tk 60.5m from Tk 70.3m [1 p.120].

Balance-sheet items. The LPC account (Tk 63.0m), re-insurance portfolio losses (Tk 8.5m) and agent balance (Tk 1.3m) are unchanged between the two year-ends [1 p.124]. Amounts due from other insurers fell by Tk 24.0m in 2025 [1 p.123]. Advance tax and the tax liability both grew with nil adjustments [1 p.121] [1 p.124].

History and market: nine years of printed figures; close Tk 40.2 on 29-Oct-2026; 52-week closes Tk 21.7-48.9

Pre-tax profit and NAV. Company net profit before tax as printed was highest in 2020 (Tk 129.4m) and lowest in 2025 (Tk 77.9m) [4 p.40] [1 p.46]. NAV per share as printed rose from Tk 15.47 (2017) to Tk 21.63 (2025) and fell in 1 year (2022) [4 p.40] [1 p.46] [21]. Note 30 computes the 2025 company NAV as Tk 909.2m over 42,043,517 shares; its 2024 comparative is printed as Tk 897,147,993 in note 30 and Tk 897,348,264 in note 30.01 [1 p.127]. Consolidated NAV was Tk 20.02 against Tk 20.24 [1 p.127].

Market data. The shares closed at Tk 40.2 on 29-Oct-2026 [16]. Over the 52 weeks to that date, DSE trading-day closes on an unadjusted basis ranged from Tk 21.7 (13-Nov-2025) to Tk 48.9 (2-Jul-2026), with no ties at either end; closes before the 14-Jun-2026 resumption after the record date are the feed's adjusted closes multiplied by 1.05 for the 5% stock dividend [16] [17]. On 42,043,517 pre-bonus shares the market value is Tk 1.69bn [21]. The price is 58.3 times 2025 consolidated EPS of Tk 0.69 and 2.06 times consolidated NAV of Tk 19.55 at 30-Sep-2026 (DSE); the 2025 cash dividend of Tk 0.50 is 1.2% of the price [21]. The annual report prints no share-price table for the year.

FAQ

How profitable was Sonar Bangla Insurance in 2025?

Company net profit before tax was Tk 77.9m against Tk 102.7m in 2024, and printed company EPS Tk 1.19 against Tk 1.56. After the two subsidiaries, consolidated EPS was Tk 0.69 against Tk 0.20. Profit transferred from the revenue accounts was Tk 47.3m and company interest income Tk 36.5m.

What did the auditor say about the 2025 accounts?

A. Hoque & Co. gave a qualified opinion. The company bases are Tk 1,778,583 of interest not accrued on 18 liened FDRs and the absence of WPPF and welfare funds required by Section 234 of the Bangladesh Labor Act. The report also quotes the subsidiaries' qualification bases, adds emphasis paragraphs on the fixed asset register, branch cash books, claims adjusted with premium income and the unclaimed-dividend bank account, and an other-matter paragraph on the subsidiaries' modified opinions.

What is Sonar Bangla Insurance's combined ratio?

94.2% in 2025, 75.6% in 2024 and 74.4% in 2023, measured as net claims plus revenue-account management expenses plus agency commission less commission on re-insurance ceded, over net premium. Among ten general insurers on the same definition it was the highest of 10 in 2025.

What dividend did Sonar Bangla Insurance declare for 2025?

5% cash and 5% stock, with record date 11-Jun-2026 and AGM 13-Aug-2026. Note 42 describes the dividend as for shareholders excluding sponsor shareholders. DSE posted on 21-Sep-2026 that the bonus shares were credited and the cash dividend paid. Cash dividends were 10% for 2023 and 2024 and 15% for 2020 and 2021.

Who owns Sonar Bangla Insurance?

At 31-Dec-2025 sponsors held 39.52%, institutions 9.33% and the public 51.15%. The largest holder on the directors' list is Modern Washing & Dyeing Ind. Ltd. with 2,431,710 shares; the four independent directors hold no shares.

What are the subsidiaries?

Sonar Bangla Capital Management Ltd. (66.80%, carried at Tk 155.0m) and SBI Securities Ltd. (52.00%, Tk 46.8m). Both audits for 2025 are modified. The consolidated accounts show realised losses on share transactions of Tk 25.7m in 2025 and Tk 75.4m in 2024.

Sources

1. Sonar Bangla Insurance Limited Annual Report 2025 (corpus SONARBAINS_ANNUAL_2025; scanned, PDF page numbers) · link · accessed 2026-11-01
2. Sonar Bangla Insurance Limited Annual Report 2024 (corpus SONARBAINS_ANNUAL_2024; scanned, PDF page numbers) · link · accessed 2026-11-01
3. Sonar Bangla Insurance Limited Annual Report 2023 (corpus SONARBAINS_ANNUAL_2023; PDF page numbers) · link · accessed 2026-11-01
4. Sonar Bangla Insurance Limited Annual Report 2021 (corpus SONARBAINS_ANNUAL_2021; PDF page numbers) · link · accessed 2026-11-01
5. Sonar Bangla Insurance Limited un-audited financial statements for January-June 2026 (corpus SONARBAINS_QUARTERLY_Q2_2026) · link · accessed 2026-11-01
6. Rupali Insurance Company Limited Annual Report 2025 (peer; note 23 revenue accounts p.141) · link · accessed 2026-11-01
7. Crystal Insurance PLC audited financial statements 2025 (peer; consolidated revenue account p.13) · link · accessed 2026-11-01
8. Karnaphuli Insurance PLC Annual Report 2025 (peer; note 26 net underwriting profit p.181) · link · accessed 2026-11-01
9. Peoples Insurance PLC Annual Report 2025 (peer; consolidated revenue account p.264) · link · accessed 2026-11-01
10. Nitol Insurance PLC Annual Report 2025 (peer; consolidated revenue account p.189) · link · accessed 2026-11-01
11. Islami Insurance Bangladesh Limited Annual Report 2025 (peer; consolidated revenue account p.110) · link · accessed 2026-11-01
12. Eastland Insurance PLC Annual Report 2025 (peer; consolidated insurance revenue account p.152-153) · link · accessed 2026-11-01
13. Central Insurance PLC audited financial statements 2025 (peer; consolidated business revenue account p.11) · link · accessed 2026-11-01
14. Asia Insurance PLC Annual Report 2025 (peer; consolidated revenue account p.178) · link · accessed 2026-11-01
15. AnalystBro published analysis notes for the nine peers (audit-opinion labels): https://analystbro.net/markets/bd/research/rupaliins-analysis-2026-10-31; https://analystbro.net/markets/bd/research/crystalins-analysis-2026-10-31; https://analystbro.net/markets/bd/research/karnaphuli-analysis-2026-10-31; https://analystbro.net/markets/bd/research/peoplesins-analysis-2026-10-31; https://analystbro.net/markets/bd/research/nitolins-analysis-2026-10-31; https://analystbro.net/markets/bd/research/islamiins-analysis-2026-10-31; https://analystbro.net/markets/bd/research/eastland-analysis-2026-10-31; https://analystbro.net/markets/bd/research/centralins-analysis-2026-10-31; https://analystbro.net/markets/bd/research/asiains-analysis-2026-10-31 · link · accessed 2026-11-01
16. AnalystBro market data: DSE daily bars for SONARBAINS to 29-Oct-2026 (chart_bars) · link · accessed 2026-11-01
17. DSE news archive for SONARBAINS, 1-Nov-2024 to 1-Nov-2026 (old_news.php, criteria=3) · 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 SONARBAINS (model.xlsx, the workbook below) · link · accessed 2026-11-01