Listed insurer Purabi General Insurance has come under scrutiny over alleged violations of insurance laws, excessive management expenses, questionable agent commissions, unlicensed agents, discrepancies in premium income and irregularities in settling insurance claims.
The irregularities were highlighted in special audit observations raised by M Z Islam & Co, Chartered Accountants, according to the company’s financial records.
The audit found that the insurer incurred Tk 4 million more than the prescribed regulatory limit in management expenses. Its cash flow statement also showed Tk 17.5 million as agent commission. Industry insiders have questioned whether the payment, made beyond the prescribed limit, could involve misappropriation of funds under the guise of commissions.
According to the company’s 2024 financial statements, Purabi General Insurance had total assets of Tk 1.5745 billion and total investments of Tk 850.6 million, including Tk 720.5 million in fixed deposits.
Auditors also found a discrepancy of Tk 4.9 million between premium income recorded in the company’s bank accounts and registered premium income. The company could not provide a satisfactory explanation for the difference, although its total premium income of Tk 41.6 million was reportedly consistent with the financial statements.
The audit report further revealed that only 11 of the company’s 13 agents held valid licences, while the remaining two allegedly operated without licences. The company was therefore conducting business through unlicensed agents, according to the audit observations.
The report also noted that although the annual report contained information on 60 officers and employees, salaries had reportedly not been paid to nine development officers.
Purabi General Insurance has also been identified by the Insurance Development and Regulatory Authority (IDRA) among insurers considered risky due to concerns over business performance and low claim settlement rates.
According to IDRA data, the company’s claim settlement rate stood at only 7.07% in the first quarter of 2025, compared with 35.32% in 2024.
Industry observers said persistent irregularities and weak claim settlement performance could undermine customers’ confidence in the insurer and the broader insurance sector.
Despite the concerns, the company reported an increase in earnings per share (EPS) in the first quarter of 2026.
For January-March 2026, Purabi General Insurance posted an EPS of Tk 0.43, compared with Tk 0.33 in the same period a year earlier. Its net operating cash flow per share (NOCFPS) rose to Tk 0.66, from Tk 0.32. Its net asset value per share (NAVPS) stood at Tk 14.75 as of March 31, 2026.
For April-June 2026, the company reported EPS of Tk 0.41, down from Tk 0.45 in the corresponding period of the previous year. NOCFPS, however, increased to Tk 1.01, from Tk 0.70. NAVPS stood at Tk 15.50 at the end of June.
The company’s official website has also drawn criticism for allegedly not being regularly updated. Even two years after the fall of the Awami League government, the website reportedly continues to contain references and content associated with the former government and Sheikh Hasina.
Investors and customers have alleged that the lack of regular updates may be obscuring important corporate information and reducing transparency.
Industry insiders said such practices could contribute to unhealthy competition in the insurance sector and hinder the implementation of regulatory directives, potentially weakening governance and fair competition.
Attempts were made several times to obtain comments from Purabi General Insurance Chief Executive Officer Sukumar Chandra Roy regarding the allegations, but he did not answer phone calls. He also did not respond to a message sent through WhatsApp.
IDRA spokesperson Saifunnahar Sumi told media “Purabi General Insurance has
Professor Dr Md Shahidul Islam Zahid, chairman of the Department of Banking and Insurance at the University of Dhaka, said failure to comply with laws and regulations often allows internal irregularities to remain concealed.
“When such undisclosed information is exposed through investigations, it creates a severe crisis of confidence among customers and the general public,” he said.
He added that operating businesses without properly following laws and policies damages an institution’s reputation and can eventually result in customer losses as well as punitive action from regulators.
Bangladesh Securities and Exchange Commission (BSEC) Executive Director and spokesperson Mohammad Abul Kalam said the commission would examine the matter seriously and take appropriate action.
Listed on the stock market in 1995, Purabi General Insurance has an authorised capital of Tk 1 billion and paid-up capital of Tk 598.1 million.
Of its 598,125,006 shares, sponsor-directors hold 31.58%, institutional investors 25.19%, foreign investors 0.02% and general investors 43.21%.
The company is currently in the ‘A’ category on the Dhaka Stock Exchange (DSE). Its shares last traded at Tk 29.01 on the DSE.
