A small, debt-free general insurer with steadily rising profits, a top credit rating, and a small but dependable cash dividend.
City Insurance is a small but financially sturdy general insurance company. Its profit has grown steadily for years, it carries no borrowings, and it pays a small but reliable cash dividend every year. It suits a patient, safety-first saver who wants steady ownership of a sound company rather than fast gains — the trade-off is that it works in a crowded, thin-margin business, so growth comes slowly and part of the profit depends on investment returns.
Value today
Looks priceyToday
৳108
Rough estimate
৳51.8
Based on its own past price levels, what similar companies trade at, the value of what it owns and the dividend it pays. · low confidence
- Its own usual price vs profit৳63.4
- Priced like similar companies (profit)৳82.6
- Its own usual price vs asset value৳56.2
- Priced like similar companies (assets)৳43.0
- Based on the dividend it pays৳16.7
A rough, educational estimate from the figures we have — not a price target or advice.
Data as of 2026-07-22
What does this company do?
A small general insurance company, listed on the Dhaka market since 2007 and backed by a top-grade credit rating.
City Insurance PLC. is a general insurance company — the kind that protects people and businesses against everyday risks like fire, accidents, damage to property, goods in transit and vehicles. It has been listed on the Dhaka Stock Exchange since 2007, so it carries close to two decades of public track record, and it sits in the exchange's top trading group (category A).
It is a small company by size. There are about 6.82 crore shares in issue, paid-up capital is 68.2 crore taka, and it has built up reserves of roughly 90.2 crore taka over the years — money kept back from past profits. By the end of 2024 it held total assets of around 218.7 crore taka.
One mark of quality: the rating agency CRISL has given City Insurance its highest grade, 'AAA' with a stable outlook, based on its audited accounts. For an insurer a top rating matters, because it signals a strong ability to pay claims when customers need them.
How does it make money?
It earns from insurance premiums, and increasingly from investing the pool of premium money it holds.
A general insurer makes money in two ways. First, it collects premiums from customers who buy cover — for fire, marine cargo, motor, property and similar risks. When fewer claims come in than the premiums collected, the leftover is profit; this is the 'underwriting' side of the business.
Second, and just as important, it earns a return on the pool of premium money it holds before claims are paid out. City invests that money and earns interest and other income from it, and this investment income has been rising over the years. In practice, a large part of a Bangladeshi general insurer's profit comes from this investment side, because the insurance side is thin and highly competitive.
That mix is worth understanding. The company's net insurance income (premiums after claims and costs) has been small and uneven from year to year, so the steadier engine of profit is the return it earns by investing the money it holds.
Is it actually making money?
Yes — profit has grown steadily, up about 92% over six years, apart from one small early dip.
Yes, and the trend is encouraging. Net profit has climbed from about 12.1 crore taka in 2020 to 23.2 crore taka in 2025 — a rise of roughly 92% over six years. There was one small wobble, a dip to 11.5 crore taka in 2021, but every year since has been higher than the one before.
Profit per share tells the same story, growing from 1.77 taka in 2020 to 3.4 taka in 2025 — also about 92% higher. The company's worth per share (its asset value, or what shareholders would own after debts) has risen steadily too, from 16.88 taka to 23.24 taka.
The growth has been gradual rather than explosive, which fits a small, steady insurer. The profit from running the business (before one-off items) has been bumpier — for example about 21.6 crore taka in 2023 but 16.5 crore taka in 2024 — a reminder that year-to-year results can swing.
Is it financially safe?
Very safe on the numbers: no borrowings at all, cash coming in from operations every year, and a growing cushion of reserves.
This is the company's strongest point. It carries no borrowings — zero bank loans on its books — so there is no interest bill to worry about and no debt that could fall due in a bad year.
It also generates real cash from its day-to-day business. Operating cash flow has been positive every year on record — for example about 18.7 crore taka in 2021, a high of 38.1 crore taka in 2022, and around 16.6 crore taka in 2024. Cash actually coming in (not just paper profit) is a sign of healthy, genuine earnings.
The cushion behind the business keeps growing too: shareholders' funds rose from about 119.5 crore taka in 2021 to 144.2 crore taka in 2024, and reserves built from past profits stand at roughly 90.2 crore taka. With no debt, steady cash and a rising reserve, the company looks well placed to ride out a poor year.
How do we judge if it's fairly priced?
We line the price up against its profit per share, its asset value, its own past pricing, similar insurers, and its dividend — the live box shows where that lands today.
We don't guess a 'right price' out of thin air. We line the share price up against several yardsticks. First, its profit per share — the company earned 3.4 taka per share in 2025 — and how many taka the market has usually paid for each taka of that profit. Over the past several years the share has typically been priced at around 19 times its yearly profit per share.
Second, its asset value: shareholders' worth per share was 23.24 taka at the end of 2025, and historically the share has traded at roughly 2.4 times that asset value. Third, how similar insurance companies are priced today, and fourth, how much dividend income the share provides.
Put together, these methods give a rounded view rather than a single number. This report deliberately leaves the actual price, the current multiples and the fair-value estimate to the live 'value today' box beside it, because those move every trading day — the durable inputs above (profit per share, asset value, and the company's own usual pricing level) are what stay true over time.
Value today
Looks priceyToday
৳108
Rough estimate
৳51.8
Based on its own past price levels, what similar companies trade at, the value of what it owns and the dividend it pays. · low confidence
- Its own usual price vs profit৳63.4
- Priced like similar companies (profit)৳82.6
- Its own usual price vs asset value৳56.2
- Priced like similar companies (assets)৳43.0
- Based on the dividend it pays৳16.7
A rough, educational estimate from the figures we have — not a price target or advice.
Does it reward shareholders?
Yes — a cash dividend every year for at least six years, small in taka but reliable and easily affordable.
City Insurance has paid a cash dividend every year for at least the last six years, which marks it out as a dependable payer. The dividend has been 10% of face value in most years, rising to 10.5% in 2022 and 12% in 2023, then settling back to 10% for 2024 and 2025.
In taka, that 10% works out to 1 taka per share (the share's face value is 10 taka). The payout per share has crept up and down in a narrow band — 1.00 taka, then 1.05, a high of 1.20 in 2023, and back to 1.00 for the last two years. So it is steady rather than growing.
Importantly, the dividend looks very affordable. The company earned 3.4 taka per share in 2025 and paid out just 1 taka of it — under a third of its profit — keeping the rest inside the business. A payout that small relative to earnings has plenty of room to continue, and it is backed by the strong cash flow noted earlier. (The dividend *yield* — the return relative to today's price — is shown live, not here.)
What makes it special?
Its edge is safety and reputation — a top credit rating and no debt — more than any pricing power in a crowded business.
City Insurance's real advantage is reputation and financial strength rather than a lock on customers. Its top-grade 'AAA' credit rating and debt-free balance sheet set it apart in a business where the ability to pay claims is everything. Its return on shareholders' money — roughly 14 to 15 taka of profit a year for every 100 taka of owners' capital — is healthy, and ahead of several peers in this report (for instance United Insurance at about 7 and Peoples Insurance at about 8), though it trails the strongest here, Sena Insurance at about 17.
Beyond that, though, general insurance is a crowded, commodity-like business. Close to 60 insurance companies compete on the exchange, mostly selling very similar cover, so no single firm has much power to charge more than the rest. City's own net insurance income (premiums after claims) has been small and choppy from year to year, which shows how thin the pricing edge really is.
So the honest picture is a company that competes on trust and stability, not on a unique product or a dominant share. That is a genuine but limited advantage — good enough to keep it profitable and well-rated, not enough to let it pull far ahead of rivals.
Why it could do well
Steady profit growth, a fortress balance sheet, a top rating, a reliable dividend, and owners with real skin in the game.
- Profit that keeps growing. Net profit rose from 12.1 crore taka in 2020 to 23.2 crore taka in 2025 — up about 92% — and profit per share climbed from 1.77 to 3.4 taka over the same period.
- A fortress balance sheet. No borrowings at all, positive operating cash flow every year (as high as 38.1 crore taka in 2022), and reserves of about 90.2 crore taka built from past profits.
- A top credit rating. The rating agency CRISL rates the company 'AAA' with a stable outlook — the highest grade — a strong signal of its ability to pay claims.
- A dependable dividend. A cash dividend every year for at least six years, using under a third of profit, so there is plenty of room to keep paying.
- Owners are invested alongside you. Sponsors and directors hold 36.06% of the shares and institutions hold 39.36%, so large, informed holders have real money at stake.
What could go wrong
A small player in a crowded, thin-margin business, with a small, flat dividend and profit that leans partly on investment returns.
- A crowded, low-margin business. Close to 60 insurers sell much the same cover, so pricing power is weak and the core insurance margin is thin — City's net insurance income has been small and uneven.
- Profit leans on investments. Because the insurance side is thin, a large part of profit comes from investment income, which can rise and fall with interest rates and markets rather than from the insurance business itself.
- It's a small company. With about 6.82 crore shares and 68.2 crore taka of paid-up capital, it is a small-cap — its results and its share can be more volatile, and trading can be thin.
- The dividend is small and flat. At 1 taka per share it is reliable but modest, and it has barely grown over six years (1.00, up to 1.20, then back to 1.00).
- Not the sector's strongest earner. Its return on owners' money (about 14 to 15 taka per 100) is good but behind the best peer here, Sena Insurance at roughly 17 — a solid mid-table performer rather than a leader.
So, is it for you?
A safe, steady, small insurer for patient income-seekers — not a pick for those chasing fast growth.
City Insurance is the kind of stock a cautious, patient investor can understand: a small general insurer with no debt, steadily rising profit, a top credit rating and a small but reliable cash dividend. If your aim is steady, dependable ownership of a financially sound company rather than quick excitement, it fits that mould well.
The trade-offs are just as clear. It is a small company in a crowded, thin-margin business, so growth is gradual and part of its profit rides on investment returns that can move around. The dividend, while safe, is modest and has not really grown over the years.
This report describes the durable business only. Whether the share is attractively priced today is a separate question — see the live 'value today' box and the current signal beside this report for that, and always weigh it against your own goals and how much risk you can take. This is educational information, not a recommendation to buy or sell.
This is educational information, not investment advice. Figures are drawn from the company's reported financials up to the data date; always do your own research and consider your goals and risk tolerance before investing.