The life fund of Padma Islami Life Insurance Company shrank in the January to June period of the current year when the company settled higher amount of claims compared to the deposited premiums.

The listed life insurer said it spent, including claim settlement, Tk 9.4 crore higher than in income in the first half of 2023, according to a posting on the website of the Dhaka Stock Exchange (DSE).

In the first half of 2022, Padma Islami's life fund deficit was Tk 6 lakh, the company said in the DSE disclosure.

The company's balance of life insurance fund was Tk 246.2 crore in the negative as of June 30 this year, down from Tk 12 crore in the positive as on June 30 of 2022.

In June this year, the Insurance Development and Regulatory Authority (Idra) appointed an observer for Padma Islami as the company has been struggling for the last few years due to bad investments.

According to the insurance regulator, the amount payable was Tk 102 crore for Padma Life Insurance.

Although the company's assets amounted to Tk 160 crore, the Idra assessed that only Tk 20 crore could be liquidated.

Stocks of the insurance company remained unchanged at Tk 41.20 compared to the previous day.