Decreasing costs help Green Delta offer good dividend: Farzanah Chowdhury

Green Delta Insurance Company declared the highest dividend in a decade riding on a significant reduction in costs.

The insurer declared 32% dividend, of which 24.5% cash and 7.5% bonus shares, for the year ended on December 31, 2020.

“Decreasing costs have helped us offer a good dividend,” Farzanah Chowdhury, managing director and CEO of Green Delta, told Business Insider Bangladesh on Monday.

The company reported that its agency cost decreased by 34%, claim expense 31% and management expense 18%.

As a result, the company earnings per share (EPS) doubled even in the coronavirus pandemic year. Green Delta’s EPS increased to Tk 7.16 in 2020 from Tk 3.23 a year ago.

“Also, our online platform has worked well last year,” said the CEO of the insurer.

The bonus share has not been declared from the revaluation or any unrealised gain or through reducing paid up capital so that the post dividend retained earnings will have a negative impact, said the company in a filing with the Dhaka Stock Exchange on Monday.

The annual general meeting (AGM) of the company is scheduled for March 30 via a digital platform where shareholders are supposed to approve the dividend.