Takaful Islami Insurance PLC is facing growing financial concerns, with around Tk 420 million tied up in advance payments, receivables and loans to an associate company, according to its 2025 financial statements.

The insurer’s advance salary stood at Tk 131.12 million at the end of 2025, up 60.2% from Tk 81.83 million a year earlier. Meanwhile, other receivables and advances exceeded Tk 260.83 million, indicating a substantial amount of funds remaining unsettled.

The figures emerged from an analysis of the company’s 2025 annual financial statements.

The company’s sundry debtors increased by Tk 38.3 million year-on-year to Tk 260.83 million. These include advance payments for office decoration and rent, commission receivables and outstanding reinsurance premiums.

Takaful Islami Insurance also has Tk 32.77 million in outstanding loans to its associate company, Takaful Islami Securities Limited (TISL). Although the amount declined from the previous year, it has not been fully adjusted. The insurer also made a fresh investment of Tk 20 million in the associate company during the year.

The company’s stock market investments suffered a significant decline in value. Against an acquisition cost of Tk 120.04 million, their market value stood at only Tk 50.86 million at the end of 2025, resulting in a loss in value of Tk 69.18 million.

Another major concern is the company’s disputed tax liabilities. Tax authorities have raised claims totalling Tk 456 million for different assessment years. The company has challenged the claims through writ petitions and appeals before the High Court. No provision has been made against these potential liabilities in the financial statements, as the cases remain pending.

Amid these financial pressures, the insurer’s net profit declined by 17.7% to Tk 77.77 million in 2025 from Tk 94.53 million in the previous year. Earnings per share (EPS) also dropped to Tk 1.24 from Tk 1.53.

The accumulation of receivables and advances, unsettled loans, declining investment values and disputed tax claims has raised questions about the company’s asset quality, financial management and future liabilities.

Attempts to contact Company Secretary Shaheen Mia by phone and text message for comments on the issues went unanswered.