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Assignment on Ratio Analysis of Life Insurance

Companies listed in the DSE

Course name: Financial Markets and Institutions


Course code: F403

Prepared for
Prof. Dr. Jahangir Alam

Prepared by
Nazia Tabassum

SN15

Jahin Masnun

ZR07

Fahad Bin Sultan

ZR24

BBA 15

Institute of Business Administration


University of Dhaka

13 June 2010

This assignment is on the various types of ratio analysis done on the ten listed life
insurance companies to analyze their performance in two ways. First, the intra-company
ratio analysis is shown over five years (2004-2008) to see the trend. Next, intercompany
ratio analysis of the latest 2008 is shown. Also, the industry averages were found using
the totals of both numerator and denominator values of different ratios to make the
comparison more meaningful.
The names of all the listed life insurance companies are given below:
1. Delta Life Insurance Co. Ltd.
2. Fareast Islami Life Insurance Co. Ltd.
3. Meghna Life Insurance Co. Ltd.
4. National Life Insurance Co. Ltd.
5. Popular Life Insurance Co. Ltd.
6. Pragati Life Insurance Ltd.
7. Prime Islami Life Insurance Ltd.
8. Progressive Life Insurance Co. Ltd.
9. Rupali Life Insurance Company Limited
10. Sandhani Life Insurance
From this list, we could not include Delta Life Insurance Co. Ltd. In our analysis since
they have stopped publishing annual reports after 2004 due to litigation with one of their
sponsors. Also, Rupali Life Insurance was listed in 2009. And the annual reports before
2005 could not be found.
Logical relationship exists between certain accounts and items in a companys financial
statements. These accounts may appear on the same statement or they may appear on
two different statements- Balance sheet and Income statement. The dollar or taka
amounts of related accounts or items are set up in fraction form and called ratios. These
ratios can be broadly classified as:
1. Liquidity Ratios
2. Leverage Ratios
3. Profitability Test Ratios
4. Market Test Ratios
5. Industry Specific Ratios
With the help of these ratios, the performance of a company can be evaluated from
different perspective. Market Test ratios for life insurance companies are limited since
they dont report EPS in their financial statements. Thus, only dividend yields could be
shown.

Page | 1

Literature Review
Definitions and Theories at play in this assignment:

Current asset: A balance sheet item which equals

the sum of cash and cash

equivalents, accounts receivable, inventory, marketable securities, prepaid expenses,


and other assets that could be converted to cash in less than one year. A company's
creditors will often be interested in how much that company has in current assets,
since these assets can be easily liquidated in case the company goes bankrupt. In
addition, current assets are important to most companies as a source of funds for

day-to-day operations.
Current liabilities: A balance sheet item which equals the sum of all money owed by a

company and due within one year. Also called payables or current debt.
Current ratio: An indication of a company's ability to meet short-term debt
obligations; the higher the ratio, the more liquid the company is. Current ratio is
equal to current assets divided by current liabilities. If the current assets of a
company are more than twice the current liabilities, then that company is generally
considered to have good short-term financial strength. If current liabilities exceed
current assets, then the company may have problems meeting its short-term
obligations. For example, if XYZ Company's total current assets are $10,000,000, and
its total current liabilities are $8,000,000, then its current ratio would be
$10,000,000 divided by $8,000,000, which is equal to 1.25. XYZ Company would be

in relatively good short-term financial standing.


Total asset turnover: Net sales divided by total assets. This is a measure of how well

assets are being used to produce revenue. Also called asset turnover.
Return on assets: A measure of a company's profitability, equal to a fiscal years

earnings divided by its total assets, expressed as a percentage.


High yield: Description of investments with high rates of return. Generally, a high
yield bond will be ranked very low by a rating agency, because these are bonds which
have a relatively high chance of default, and therefore have to offer higher returns.
Similarly, a stock will offer a high dividend yield in order to compensate for lower
expected capital gains, for example a large company in a mature industry which is no

longer growing.
Liquidity ratio: Liquidity ratios are used to indicate a companys short term debtpaying ability. Thus, these ratios are designed to show interested parties the

companys capability to meet maturing current liabilities.


Leverage Ratios: Leverage/ Equity or long-term solvency ratios show the relationship

of debt and equity financing in a company.


Equity Ratio: This indicates the proportion of total assets provided by stockholders
(investors) on any given date. It is found out by dividing the stockholders equity by
the total assets.

Page | 2

Shareholders Equity to Debt ratio: This ratio is yet another measure of the relative
equities of owners and creditors. It shows the number of taka of stockholders equity

to one taka of total debt. It examines firms capital structure.


Profitability Ratio: Profitability, i.e. ability of a company to earn profits, is an
important measure of a companys operating success. Generally, we are concerned
with two areas when judging profitability a. Relationships on the income statement
that indicates a companys ability to recover costs and b. Relationships of income to
various balance sheet measures that indicate the companys relative ability to earn

income on assets employed.


Management Expense to Premium Ratio: This is a special kind of ratio only to
measure insurance companies performances. This depicts how much of total

management costs are covered by the premiums earned.


Return on equity: A measure of how well a company used reinvested earnings to
generate additional earnings, equal to a fiscal year's

after-tax income (after

preferred stock dividends but before common stock dividends) divided by book value,
expressed as a percentage. It is used as a general indication of the company's
efficiency; in other words, how much profit it is able to generate given the resources
provided by its stockholders. Investors usually look for companies with returns on

equity that are high and growing.


Capital structure: The permanent long-term financing of a company, including longterm debt, common stock and preferred stock, and retained earnings. It differs from

financial structure, which includes short-term debt and accounts payable.


Debt/equity ratio: A measure of a company's financial leverage. Debt/equity ratio is
equal to long-term debt divided by common shareholders' equity. Typically the data
from the prior fiscal year is used in the calculation. Investing in a company with a
higher debt/equity ratio may be riskier, especially in times of rising interest rates, due
to the additional interest that has to be paid out for the debt. For example, if a
company has long-term debt of $3,000 and shareholders equity of $12,000, then the
debt/equity ratio would be 3000 divided by 12000 = 0.25. It is important to realize
that if the ratio is greater than 1, the majority of assets are financed through debt. If

it is smaller than 1, assets are primarily financed through equity.


Sponsor: The general partner who organizes and sells the limited partnership.

1 Liquidity Ratios
It is used to measure the solvency of the firm. It also measures the ability of the firm to
pay obligation when due. If the firm has an excessive net working capital, the firm is
deemed to be liquid.

Page | 3

1.1 Current Ratio/ Working Capital Ratio


Working capital is the excess of current asset over current liabilities. The ratio that
relates the current asset to the current liability is known as the current ratio or the
working capital ratio. This ratio indicates the ability of the company to pay its current
liabilities from current assets and in this way, shows the strength of the companys
working capital position.
1. Fareast Islami Life Insurance Co. Ltd.

Year
Total Current
Asset
Total Current
Liability
Current Ratio

2004

2005

2006

2007

2008

918,382,6
01

1,201,803,
465

2,046,456,
792

3,292,923,
308

4,852,626,
004

181,336,0
185,471,7
262,677,2
240,572,6
410,117,71
62
81
87
27
4
5.0645337 6.4797105 7.7907641 13.687855 11.832276
22
98
55
3
05

The graph shows that FLI is having an increasing current ratio. This is consistently going
up since 2007 showing more and more solvency. It shows that the firm is in good
standing in meeting obligation when due.

2. Meghna Life Insurance Co. Ltd.

Year

2004

2005

2006

2007

2008

Total Current
Page | 4

Asset
Total Current
Liability
Current Ratio

773,743,9
65

1,191,232,
059

1,780,152,
113

2,464,382,
969

3,428,341,
928

181,080,8
265,474,3
332,695,9
411,052,7
494,499,98
08
51
14
81
1
4.2729208 4.4871832 5.3506882 5.9952956 6.9329465
77
42
35
97
31

The graph shows that Meghna LIC is having an increasing current ratio. This is
consistently going up till 2008. It indicates the solvency of the firm. It also indicates the
ability of the firm to pay obligation when due.
3. National Life Insurance Co. Ltd.

Year
Total Current
Asset
Total Current
Liability
Current Ratio

2004

2005

2006

2007

2008

3,739,592,
502

4,721,936,
073

6,218,387,
607

7,639,915,
354

9,568,399,
344

834,003,97 1,010,761, 1,364,847, 1,592,600, 1,633,149,


6
872
472
182
615
4.4839024 4.6716602 4.5561044 4.7971332 5.8588626
87
63
25
92
88

Page | 5

The graph shows that National LIC is having a stable current ratio except a slight
deviation in 2008. This is consistently moving between 4 to 5. It indicates the solvency
of the firm. It also indicates the ability of the firm to pay obligation when due is in a risky
position if there had been some unusual claims than average.
4. Popular Life Insurance Co. Ltd.

Year
Total Current
Asset
Total Current
Liability
Current Ratio

2004

2005

2006

2007

2008

347,292,05
7

864,123,605

1,733,941,0
15

2,309,930,3
27

4,031,506,55
0

92,883,285 114,153,865 89,838,916


81,671,688
129,892,448
3.7390156
7.56981469
19.3005558
28.2831221 31.03726669
58
7
4
4

Page | 6

The graph shows that Popular LIC is having an increasing current ratio. It grew rapily
during 2004-2007. Then the growth slowed down. It may happen due to decrease in
current asset. It indicates the solvency of the firm. It also indicates the ability of the firm
to pay obligation when due.
5. Pragati Life Insurance Ltd.

Year
Total Current
Asset
Total Current
Liability
Current Ratio

2004

2005

2006

2007

2008

231,650,
923

2,083,369,
284

645,578,19
7

768,284,03
7

982,856,55
2

50,010,5
1,783,623, 137,936,15 89,970,967 91,149,826
27
988
3
4.632043 1.1680540 4.6802682 8.5392439 10.782868
23
84
47
65
11

Page | 7

The graph shows that Pragati LIC is having some difficulty in maintaining a stable current
ratio. This has fallen drastically in 2005. Then it is consistently going up till 2008.

It

indicates the solvency of the firm after the period 2005.. It is also indicating the lack
ability of the firm to pay obligation when due in 2005.
6. Prime Islami Life Insurance Ltd.

Year
Total Current
Asset
Total Current
Liability
Current Ratio

2004

2005

2006

2007

2008

95,878,64
8

184,982,7
78

1,799,840,
379

785,994,5
75

1,273,438,
466

14,196,77
28,104,57
36,110,94
51,882,10
79,046,537
2
4
8
3
6.7535527 6.5819456 49.841958 15.149628 16.109984
09
29
7
28
25

Page | 8

The graph shows that Prime Islami LIC has maintained a stable current ratio over 20042008 except the boom in 2006. It was around 10 on an average the graph indicates the
solvency of the firm. It also indicates the ability of the firm to pay obligation when due.
As the firm has an excessive net working capital in 2006, the firm is deemed to be facing
liquidity flood.
7. Progressive Life Insurance Co. Ltd.

Year
Total Current
Asset
Total Current
Liability
Current Ratio

2004

2005

2006

2007

2008

48,913,5
76

89,333,127

199,406,07
4

297,397,19
9

417,741,84
8

19,397,2
84,980,804 47,429,554 47,118,284 47,071,931
38
2.521677 1.0512153 4.2042578 6.3117154 8.8745424
365
66
35
05
1

Page | 9

The graph is similar to pragati LI. So, it indicates that Progressive was facing quite same
financial situations like that firm. The figures are a bill less than that of pragati Li. After
2005, the firm was able to pull up current ratios up to 8.87
8. Rupali Life Insurance Company Limited

Year
Total Current
Asset
Total Current
Liability
Current Ratio

2004

2005

2006

2007

2008

121,733.0
0
30,952.00

154,040.0
0
33,360.00

224,397.0
0
20,739.00

343,035.0
0
13,690.00

320,247.0
0
17,412.00

3.9330

4.6175

10.8200

25.0573

18.3923

Rupali LI maintained a healthy growth from 2004 to 2007. The boon occurred in 2007
when the ratio hit the ceiling of 25. Then it came down to 18. It indicates the solvency of

Page | 10

the firm in recent times. It also indicates the ability of the firm to pay obligation when
due.
9. Sandhani Life Insurance

Year
Total Current
Asset
Total Current
Liability
Current Ratio

2004

2005

2006

2007

2008

684,325,
073

933,510,15
5

1,247,226,
109

1,810,899,
182

2,774,270,
544

225,912,
240,598,27 255,184,24 274,734,05 287,790,24
853
4
7
3
9
3.029155 3.8799536 4.8875513 6.5914624 9.6399045
11
65
42
06
96

The graph shows that Sandhani LIC is having an increasing current ratio which is
increasing at a constant rate. The 2008 current ratio is the highest. It indicates better
solvency of the firm in later years. It also indicates the ability of the firm to pay
obligation when due in coming years as the firm is having more current assets in every
following years.
10. Industry performance

Year
Total
industry
CA
Total
industry
CL

2004

2005

2006

2007

2008

6,839,901,
078.00

11,270,444,
586.00

15,671,212,
683.00

19,370,069,
986.00

27,329,501,
483.00

1,598,852,
473.00

3,713,202,8
69.00

2,526,741,2
30.00

2,789,616,3
75.00

3,172,735,7
13.00

Page | 11

Current
ratio:

4.2780063
79

3.03523534
4

6.20214389
1

6.94363216
4

8.61386007
4

The graph shows that there has been a little downfall in the life industry market in 2005.
Except that, the current ratios of the LICs were on the rise. 2008 tends to be the most
promising years for all LICs. The industry moved between 6 to 8.5 in recent years of
2006-2008.

National
LI
Fareast LI
Meghna
LI
Popular LI
Pragati LI
Prime
Islami LI
Progressi
ve LI
Sandhani
LI
Rupali LI

2004
4.4839
02
5.0645
34
4.2729
21
3.7390
16
4.6320
43
6.7535
53
2.5216
77
3.0291
55
3.9329

2005
4.6716
6
6.4797
11
4.4871
83
7.5698
15
1.1680
54
6.5819
46
1.0512
15
3.8799
54
4.6175

2006
4.556104
425
7.790764
155
5.350688
235
19.30055
584
4.680268
247
49.84195
87
4.204257
835
4.887551
342
10.82004

2007
4.797133
292
13.68785
53
5.995295
697
28.28312
214
8.539243
965
15.14962
828
6.311715
405
6.591462
406
25.05734

2008
5.8588626
88
11.832276
05
6.9329465
31
31.037266
69
10.782868
11
16.109984
25
8.8745424
1
9.6399045
96
18.392315
Page | 12

61

06

918

112

64

This comparative overview of the analyzed companies shows that Prime Insurance LIC
was the leader in 2006 who scored more than industry by a mile. Popular LIC shows a
promising current ratio analysis who seems to be the market leader in terms of current
ratio.

1.2 Quick Ratio


Quick Ratio is risk free approach for interpreting the debt paying ability of a company.
This is found out by dividing the quick assets (current asset-inventory-doubtful
receivable) by the current liabilities. Hence this ratio is useful to get the information
about the relationship between immediate cash inflows to cash outflows. It shows ability
of the firm to pay debts without relying on revenue and collection of doubtful receivable.

Page | 13

1. Fareast Islami Life Insurance Co. Ltd.

Year
Total Current
Liability
Cash+
Marketable
securities+Acc
ounts
receivables
Quick Ratio

2004

2005

2006

2007

2008

181,336,062

185,471,781

262,677,287

240,572,627

410,117,714

821,273,166

1,093,964,4
67

1,897,057,8
88

2,974,758,8
68

4,261,990,32
8

4.52901180
8

5.89827984
1

7.22200959
8

12.3653256
2

10.39211471

The graph shows that Far East Islami LIC had a positive increasing trend of quick ratio.
This shows the increasing debt paying ability of the company till 2007 when it exceeded
12 mark. This ratio is providing the information about the relationship between
immediate cash inflows to cash outflows of LIC which is quite promising over the years.
Though it decreased in 2008 but stayed above than most other analyzed companies. The
graph shows ability of the firm to pay debts without relying on revenue and collection of
doubtful receivable.
2. Meghna Life Insurance Co. Ltd.

Year

2004

2005

2006

2007

2008

181,080
,808

265,474
,351

332,695
,914

411,052
,781

494,499,
981

Total Current Liability


Cash+ Marketable
Page | 14

securities+Accounts
receivables
Quick Ratio

688,634 1,084,8
1,589,5
2,133,0
2,930,14
,381
94,092
64,462
47,560
0,780
3.80291 4.08662 4.77782 5.18923 5.92546
2018
4896
9829
0334
1866

The graph shows that Meghna LIC had a constant increasing trend of quick ratio. This
shows the increasing debt paying ability of the company. This ratio is providing the
information about the relationship between immediate cash inflows to cash outflows of
LIC which has moved around 3.80-5.92. The graph shows ability of the firm to pay debts
without relying on revenue and collection of doubtful receivable. If the claims increase
extra-ordinarily, then the firm may face some liquidity shortage.
3. National Life Insurance Co. Ltd.

Year

2004

2005

2006

2007

2008

834,003,
976

1,010,7
61,872

1,364,8
47,472

1,592,6
00,182

1,633,14
9,615

Total Current Liability


Cash+ Marketable
securities+Accounts
receivables
Quick Ratio

3,286,79 4,199,8
5,527,3
6,719,7
8,483,26
7,922
40,603
50,235
92,836
7,574
3.94098 4.15512 4.04979 4.21938 5.19442
5914
3694
3364
4697
1562

Page | 15

The graph shows that National LIC had a constant trend of quick ratio between FY200408. The debt paying ability of the company is quite immobile. This ratio is providing the
information about the relationship between immediate cash inflows to cash outflows of
LIC which suggests that the current liability as well as cash in hand has not increased
over years.. The ability of the firm to pay debts without relying on revenue and collection
of doubtful receivable is also limited. If the claims increase extra-ordinarily, then the firm
may face some liquidity shortage.
4. Popular Life Insurance Co. Ltd.

Year
Total Current
Asset
Total Current
Liability
Current Ratio

2004

2005

2006

2007

2008

347,292,
057

864,123,60
5

1,733,941,
015

2,309,930,
327

4,031,506,
550

92,883,2
114,153,86 89,838,916 81,671,688 129,892,44
85
5
8
3.739015 7.5698146 19.300555 28.283122 31.037266
658
97
84
14
69

Page | 16

The graph shows that Popular LIC had a trend of quick ratio which had been increasing
at a increasing rate since 2004. It became stable in 2008. This shows the increasing debt
paying ability of the company. The relationship between immediate cash inflows to cash
outflows of this LIC has moved around 3..4-25.33. This volatility indicates that the ability
of the firm to pay debts without relying on revenue and collection of doubtful receivable
has increased tremendously.
5. Pragati Life Insurance Ltd.

Year

2004

2005

2006

2007

2008

50,010,
527

1,783,6
23,988

137,936,
153

89,970,9
67

91,149,8
26

Total Current Liability


Cash+ Marketable
securities+Accounts
receivables
Quick Ratio

153,67 1,985,1
445,565, 373,886, 406,158,
6,232
34,531
486
763
269
3.0728 1.11297 3.23022 4.15563 4.45594
77676
8153
9902
7929
1243

Page | 17

The graph shows that Pragati LIC maintained a quite stable quick ratio except in 2005.
As the industry suffered a downturn in 2005, this firm was no exception in that time.
This graph also shows the limited debt paying ability of the company. Cash inflow to cash
outflow relationship of this LIC indicates that the firm did not undergo much investment
or restructuring during 2006-2008. The graph shows limited ability of the firm to pay
debts without relying on revenue and collection of doubtful receivable which moved
around 3.22-4.45. If the claims increase extra-ordinarily, then the firm may face some
liquidity shortage.
6. Prime Islami Life Insurance Ltd.

Year

2004

2005

2006

2007

2008

14,196,
772

28,104,
574

36,110,
948

51,882,
103

79,046,5
37

Total Current Liability


Cash+ Marketable
securities+Accounts
receivables
Quick Ratio

93,355,
127

177,485
,367

1,746,7
84,733

661,458
,729

882,272,
338

6.57579
9555

6.31517
7273

48.3727
1879

12.7492
6595

11.1614
2935

Page | 18

Prime Islami LIC maintained its stance in quick ratio above average of the market. It
even exceeded its own standard in 2006 up to 48.37. This shows the excellent debt
paying ability of the company. This ratio is providing the information about the
relationship between immediate cash inflows to cash outflows of LIC which has moved
around 3.80-5.92. The graph shows high ability of the firm to pay debts without relying
on revenue and collection of doubtful receivable.
7. Progressive Life Insurance Co. Ltd.

Year

2004

2005

2006

2007

2008

19,397,
238

84,980,8
04

47,429,5
54

47,118,2
84

47,071,9
31

Total Current Liability


Cash+ Marketable
securities+Accounts
receivables
Quick Ratio

24,457, 44,667,5 99,704,0 148,699, 208,871,


790
66
40
603
928
1.2608 0.52561 2.10215 3.15587 4.43729
90339
948
0064
9
2534

Page | 19

Progressive LIC maintained an increasing quick ratio trend which also increased at a
increasing rate since 2005. This ratio is providing the information about the relationship
between immediate cash inflows to cash outflows of LIC which has moved around 2-4.43
in the FY2006-08. The graph shows medium ability of the firm to pay debts without
relying on revenue and collection of doubtful receivable. Still, the firm stands well above
industry average.
8. Rupali Life Insurance Company Limited

Year

2004

2005

2006

2007

2008

30,952,
469

27,013,
877

11,236,
591

10,724,
570

14,446,2
67

Total Current Liability


Cash+ Marketable
securities+Accounts
receivables
Quick Ratio

178,87
235,25
354,59
489,68
506,80
3,537
6,668
7,937
1,318
7,587
5.77897 8.70873 31.5574 45.6597 35.0822
4756
3959
3027
624
5253

Page | 20

Rupali LIC quick ratio fluctuated during 2004-08. Their market stance is well above
average. Their quick ratio shows a boom in 2006 and 2007. The graph shows high ability
of the firm to pay debts without relying on revenue and collection of doubtful receivable.
9. Sandhani Life Insurance

Year

2004

2005

2006

2007

2008

225,91
2,853

240,598,
274

255,184,
247

274,734,
053

287,790,
249

Total Current Liability


Cash+ Marketable
securities+Accounts
receivables
Quick Ratio

50,010, 1,783,62 137,936, 89,970,9 91,149,8


527
3,988
153
67
26
2.4522 3.14951 3.98826 5.51571 8.08195
98719
3799
5851
5757
9427

Page | 21

Sandhani LI maintained an increasing quick ratio trend which also increased at a


increasing rate since 2004. This ratio is providing the information about the relationship
between immediate cash inflows to cash outflows of LIC where the inflows are higher
than outflows. The graph shows medium ability of the firm to pay debts without relying
on revenue and collection of doubtful receivable.
10. Industry performance

Year
Total industry
Current Liability
Cash+ Marketable
securities+Accounts
receivables
Quick ratio:

2004

2005

2006

2007

2008

1,598,85
2,473.00

3,713,20
2,869.00

2,526,74
1,230.00

2,789,61
6,375.00

3,172,73
5,713.00

6,122,44 10,361,0 14,267,0 17,045,8 23,296,1


7,706
68,467
07,294
07,419
03,064
0.26114 0.358380 0.177103 0.163654 0.136191
5958
304
802
106
693

The industry shows a negative quick ratio trend in the analyzed years. It went up in
2005 and started falling since then. The 2008 value for quick ratio was the lowest.

National
LI
Fareast LI
Meghna
LI
Popular LI
Pragati LI

2004
4.4839
02
4.5290
12
3.8029
12
3.4599
74
3.0728

2005
4.6716
6
5.8982
8
4.0866
25
6.8509
08
1.1129

2006
4.556104
425
7.222009
598
4.777829
829
17.68320
418
3.230229

2007
4.797133
292
12.36532
562
5.189230
334
24.84492
297
4.155637

2008
5.8588626
88
10.392114
71
5.9254618
66
25.333921
98
4.4559412
Page | 22

Prime
Islami LI
Progressi
ve LI
Sandhani
LI
Rupali LI

78
6.5758
00
1.2608
90
2.4522
99
3.5944
39

78
6.3151
77
0.5256
19
3.1495
14
4.2927
71

902
48.37271
9
2.102150

929
43
12.74926 11.161429
6
3.155879
4.437293

3.988265
851
11.51104
8

5.515715 8.0819594
757
27
30.45579 17.786943
3

1.3 Cash Ratio


Cash ratio measures a companys ability to meet its current obligations with just the
cash and cash equivalents on hand. It is calculated as cash + short term marketable
investments divided by current liabilities.
1. Fareast Islami Life Insurance Co. Ltd.

Year
Total Current
Asset
Total Current
Liability
Current Ratio

2004

2005

2006

2007

2008

918,382,6
01

1,201,803,
465

2,046,456,
792

3,292,923,
308

4,852,626,
004

181,336,0
185,471,7
262,677,2
240,572,6
410,117,71
62
81
87
27
4
5.0645337 6.4797105 7.7907641 13.687855 11.832276
22
98
55
3
05

Page | 23

Far East Islami LI Cash ratio specifies the companys moderate ability to meet its current
obligations with just the cash and cash equivalents on hand which has increased over
years and fell a little in 2008. The company stayed in line with the market in these years.
2. Meghna Life Insurance Co. Ltd.

Year
Total Current
Liability
Cash+
Marketable
securities
Cash Ratio

2004

2005

2006

2007

2008

181,080,8
08

265,474,3
51

332,695,9
14

411,052,7
81

494,499,9
81

562,888,2 18,645,73 1,471,468 2,030,713 2,861,501,


28
1
,450
,887
860
3.108491
0.070235
4.422863
4.940275 5.7866571
917
527
005
266
69

Page | 24

Except in 2005, Meghna LI did good in cash ratio and maintained a stable growth in the
cash and cash equivalents on hand. There may have been some crisis in cash during
2005 which caused the ratio to fall drastically.
3. National Life Insurance Co. Ltd.

Year
Total Current
Liability
Cash+Marketabl
e Securities
Cash Ratio

2004

2005

2006

2007

2008

834,003,9
76

1,010,761
,872

1,364,847
,472

1,592,600
,182

1,633,149
,615

2,842,541, 3,804,030 5,087,311 6,139,896 7,731,460


312
,325
,445
,765
,857
3.4083066
3.763527
3.727384
3.855265
4.734079
67
721
597
643
956

National LI had a healthy cash ratio and moved within the limit of 3.5-4.5. this graph
measures the companys strong ability to meet its current obligations with just the cash
and cash equivalents on hand.
4. Popular Life Insurance Co. Ltd.

Year
Total Current
Liability
Cash+
Marketable
securities
Cash Ratio

2004

2005

2006

2007

2008

92,883,2
85

114,153,8
65

89,838,91
6

81,671,68
8

129,892,4
48

191,289, 523,750,9 1,289,087, 1,654,097, 2,821,161,


377
02
861
682
865
2.05945 4.5881136 14.348880 20.253012 21.719213
9643
13
4
06
92
Page | 25

Popular LI had a healthy cash ratio which increased at a increasing rate. This graph
indicates the companys moderate ability to meet its current obligations with just the
cash and cash equivalents on hand in 2006-2008 year.
5. Pragati Life Insurance Ltd.

Year
Total Current
Liability
Cash+Marketabl
e Securities
Cash Ratio

2004

2005

2006

2007

2008

50,010,5
27

1,783,623
,988

137,936,1
53

89,970,96
7

91,149,82
6

106,805, 1,886,170 268,302,2 269,822,8 389,398,8


195
,431
93
88
23
2.13565
1.057493 1.9451194 2.9989995 4.2720742
4259
308
42
33
33

Page | 26

Except the slight decrease in 2005, the cash ratio of Pragati LI increased at a healthy
rate. The ratio started at 2.32 in 2004 and ended at 4.27. this increasing trend suggests
that the firm is doing good in maintaining a healthy balance of cash and cash
equivalents.
6. Prime Islami Life Insurance Ltd.

Year
Total Current
Liability
Cash+
Marketable
securities
Cash Ratio

2004

2005

2006

2007

2008

14,196,77
2

28,104,57
4

36,110,94
8

51,882,10
3

79,046,53
7

59,757,87 127,065,7 1,719,518 595,818,5 780,213,6


4
97
,981
73
51
4.209257
4.521178
47.61766
11.48408 9.8703078
851
546
379
678
04

Page | 27

2006 was a promising year for Prime Islami Li, as the graph suggests. Except 2006,
other years cash ratio moved around 5-10 which is above industry average. The firm,
thus shows a moderate strength in managing liquidity.
7. Progressive Life Insurance Co. Ltd.

Year
Total Current
Liability
Cash+
Marketable
securities
Cash Ratio

2004

2005

2006

2007

2008

19,397,2
38

84,980,80
4

47,429,55
4

47,118,28
4

47,071,93
1

7,733,26 32,884,31 88,614,55 129,508,8 177,477,0


4
8
5
95
46
0.39867 0.3869617 1.8683404 2.7485910 3.7703370
8616
19
66
78
61

The increasing cash ratio of progressive LI is attractive to the policy holders whose
policies are going to mature incoming future. Except this, cash ratio graph indicates the
firms strong ability in 2006-2008 period to meet all other current obligations with just
the cash and cash equivalents on hand.
8. Rupali Life Insurance Company Limited

Year
Total Current
Liability
Cash+
Marketable
securities

2004

2005

2006

2007

2008

30,952,46
9

27,013,87
7

11,236,59
1

10,724,57
0

14,446,26
7

123,431,9
09

193,154,9
42

298,264,9
40

458,289,0
50

485,665,1
52
Page | 28

Cash Ratio

3.987788
793

7.150211
797

26.54407
729

42.73262
704

33.618730
15

Rupali LI maintained a healthy cash ratio in 2006-2008 period and moved within the limit
of 3.5-4.5. this graph measures a companys strong ability to meet its current obligations
with just the cash and cash equivalents on hand. The ratio indicates companys strong
stance in managing cash and cash equivalents.
9. Sandhani Life Insurance

Year
Total Current
Liability
Cash+Marketabl
e Securities
Cash Ratio

2004

2005

2006

2007

2008

225,912,
853

240,598,2
74

255,184,2
47

274,734,0
53

287,790,2
49

339,826, 514,275,0 837,810,7 1,289,236, 2,040,792,


345
00
63
929
023
1.50423 2.1374841 3.2831601 4.6926724 7.0912479
6437
62
98
77
84

Page | 29

10. Industry performance in 2008

Year
Total industry
Current
Liability
Cash+
Marketable
securities
Cash ratio:

2004

2005

2006

2007

2008

1,598,852
,473.00

3,713,202,
869.00

2,526,741,
230.00

2,789,616,
375.00

3,172,735,
713.00

5,024,350
,658

8,142,478,
239

12,867,29
1,054

15,278,85
3,814

21,141,63
4,070

0.318220
717826

0.4560285
89824

0.1963693
22758

0.1825802
12427

0.1500705
05548

The industry shows a decreasing trend in the analyzed years. The ratio started falling
since 2005 and ended up at 15 in 2008.
Page | 30

Fareast LI
Meghna LI
Popular LI
Pragati LI
Prime Islami
LI
Progressive
LI
Sandhani LI
Rupali LI
National LI

2004
4.3569775
66
3.1084919
17
2.0594596
43
2.1356542
59
4.2092578
51
0.3986786
16
1.5042364
37
3.9877887
93
3.4083066
67

2005
5.6208054
26
0.0702355
27
4.5881136
13
1.0574933
08
4.5211785
46
0.3869617
19
2.1374841
62
7.1502117
97
3.7635277
21

2006
6.8788275
78
4.4228630
05
14.348880
4
1.9451194
42
47.617663
79
1.8683404
66
3.2831601
98
26.544077
29
3.7273845
97

2007
11.270896
36
4.9402752
66
20.253012
06
2.9989995
33
11.484086
78
2.7485910
78
4.6926724
77
42.732627
04
3.8552656
43

2008
9.3972112
43
5.7866571
69
21.719213
92
4.2720742
33
9.8703078
04
3.7703370
61
7.0912479
84
33.618730
15
4.7340799
56

Rupali, Popular and Prime Islami LICs are the above average performers in the analyzed
years.. most of the companies showed an increasing trend in the analyzed years. Prime
insurance company has topped in 2006 in quick ratio. Among the other companies,
Rupali LI and Popular Li mainained a good standing.

1.4 Total Assets Turnover


Assets in a company are the sources for generating revenue. This ratio depicts the ability
of the assets to generate revenue. It also measures the efficiency of the management of

Page | 31

the firm to utilize assets to produce revenue. The total revenue was found by adding up
the net premiums, income from profit, dividends and rents, and other income. The
average total asset was found by finding the average of the total asset of the previous
year and the current year. For this, the total asset for 2003 was also required. Where
this was not found, ratios for only four years could be shown.
1. Fareast Islami Life Insurance Co. Ltd.

Fareast LI
Total
revenue
avg total
assets
Total Asset
Turnover

2005
5,667,645,0
35

2006
7,520,571,
622

2007
9,668,765,
345

2008
11,949,572,
179

1,398,879,1 2,218,010, 3,522,627, 5,383,887,3


69
015
026
61
4.05156153 3.3906842 2.7447598 2.21950634
6
5
83
9

The graph shows that FLI is having a declining TAT ratio. This is consistently going down
showing more and more efficient use of assets to generate revenue stream. However, it
is still higher than many other companies. The management should try to put the assets
in better use.
2. Meghna Life Insurance Co. Ltd.

Meghna LI
Total revenue
avg total

2005
793666506
1,350,7

2006

2007

2008

1,130,36

1,585,861,4

2,051,604,

8,882
2,030,77

43
2,924,69

701
4,087,86
Page | 32

assets
Total Asset
Turnover

80,306
0.836826593

3,978
0.7809147
94

9,594
0.70147536

1,584
0.65304033
9

This company also shows promise as the TAT ratio is decreasing over the years. The ratio
is very small indicating good use of assets to generate revenues. So, the management
should be happy with the trend and keep reducing this amount as much as possible.

3. National Life Insurance Co. Ltd.

National LI

2004

2005

2006

2007

Total revenue

2008

2,445,315,
3,068,35
3,805,258,
4,499,429,
5,119,796,
956
1,359
288
778
765
Average total
4,245,836,
5,667,64
7,520,571,
9,668,765,
11,949,572,
assets
076
5,034
621
345
179
Total
Asset 0.57593272
0.541380298 0.50597992 0.465357222 0.428450215
Turnover
8
8

Page | 33

As the graph indicates, the total asset turnover ratio is consistently falling. This shows
that better asset utilization is being done as the management gains insight on doing
business. The management should be happy with a lower TAT ratio as it indicates
efficiency.
4. Popular Life Insurance Co. Ltd.

Popular LI

2005

2006

2007

2008

Total revenue
1,401,904,61
9
avg total
assets
Total Asset
Turnover

2,353,533,
605

3,229,632,3
52

4,327,292,5
03

737,124,015

1,575,755, 2,951,008,3 5,052,919,5


729
55
30
1.901857206 1.4935903 1.09441654 0.85639450
84
2

Page | 34

The TAT ratio is gradually declining and in 2008, it has gone to 0.856394502. For the
first time, the ratio has gone below 1. This shows good work by the management who
has utilized the assets better to generate revenues.
5. Pragati Life Insurance Ltd.

Pragati LI

2005

2006

2007

2008

Total revenue
370,960,101
avg total
assets
Total Asset
Turnover

589,511,90
0

678,164,120 896,186,398

1,202,765,98 1,449,046, 854,213,914 1,106,456,7


6
750
87
0.308422507 0.4068273 0.79390432 0.80996059
85
5
6

Page | 35

Pragati has a unique TAT ratio. The ratio is actually increasing unlike every other
company in the life insurance industry. However, they started off as a very efficient
company with a ratio of 0.308422507. This is very low and probably very difficult to
maintain. Thus, in the competitive industry, they are going to meet the rest of the
companies somewhere in the middle. In 2008, the ratio was 0.809960596, which is still
very much competitive compared to other peer companies. Their management should try
to make sure this trend does not continue above a certain amount after which they will
become inefficient in the industry.
6. Prime Islami Life Insurance Ltd.

Prime Islami LI

2005

2006

2007

2008

Total revenue
352,616,931
avg total
assets
Total Asset
Turnover

595,113,65
9

892,846,079 1,171,602,4
83

203,963,292

1,097,411, 1,449,753,8 1,272,017,2


811
77
63
1.728825455 0.5422883 0.61586045 0.92105863
67
3
4

Page | 36

Prime Islami LI has very dramatically lowered their TAT ratio in 2006 to 0.542288367
from 1.728825455 in the previous year. This is very commendable but in 2007, they
experienced a slight rise again in that number. In 2009, the assets have become less
efficient again compared to 2006 and 2007.

7. Progressive Life Insurance Co. Ltd.

Progressive
LI
Total
revenue
Avg. total
assets
Total Asset
Turnover

2004

2005

2006

2007

2008

210,5
95,216
117,16
5,808
1.7974118
94

353,
741,816
233,1
65,183

493,0
34,763
361,0
90,797
1.3654038
1.517129668
46

619,5
03,075
508,4
30,734
1.2184611
07

908,0
68,122
805,4
26,791
1.1274371
96

Page | 37

Although the TAT ratio is decreasing every year, it is still very high. Thus, the assets of
this company are not being properly utilized. However, the management is showing
improvement as this ratio is slowly getting lower.
8. Rupali Life Insurance Company Limited

Rupali LI
Total revenue

2004
248,669,18
0

avg total
assets
Total Asset
Turnover

2005
372,556,267

2006
577,527,21
1

2007

2008

760,257,269 379,150,810

209,662,39 291,243,097
427,016,33 650,026,887 832,516,094
3
7
1.1860457 1.279193467 1.3524709 1.16957818 0.45542760
02
97
9
4

Page | 38

In 2004, the TAT was 1.186 which slowly decreased and in 2008, it was only 0.455. This
is a positive sign since the assets are now being used more and more efficiently as
indicated by the ratio. The management is making more revenue out of the assets.
9. Sandhani Life Insurance

Sandhani LI
Total revenue

2004
778,286,07
9

avg total
assets
Total Asset
Turnover

2005
1,182,758,44
7

2006
1,461,538,
156

2007

2008

1,910,195,2
86

2,200,684,6
27

817,553,63 1,178,607,69 1,684,921, 2,472,075,4 3,546,221,7


0
4
377
84
90
0.9519694 1.003521743 0.8674221 0.77270912 0.62057162
5
7
6
7

Sandhani shows a consistent trend of TAT ratio. This ratio fluctuates within 1.003521743
to 0.620571627. In 2008, it has done well compared to other companies in using its
assets to generate revenues. This management is investing in the right assets to
generate as much revenue as possible.
10. Industry performance in 2008

Company
National LI
Fareast LI
Meghna LI
Popular LI
Pragati LI
Prime Islami LI

Total asset
turnover
0.428450215
2.219506349
0.653040339
0.856394502
0.809960596
0.921058634
Page | 39

Progressive LI
Rupali LI
Sandhani LI
Industry
average

1.127437196
0.455427604
0.620571627
0.899094118

As we can see that most companies are near the industry average of 0.899. However,
Fareast is doing exceptionally bad in 2008 with a TAT of 2.219. And the lowest TAT of
only 0.428 reported by National Life Insurance. Fareast should be concerned with the
utilization of their assets.

2 Leverage Ratios
Leverage/ Equity or long-term solvency ratios show the relationship of debt and equity
financing in a company.

2.1 Equity Ratio


This indicates the proportion of total assets provided by stockholders (investors) on any
given date. It is found out by dividing the stockholders equity by the total assets.
1. Fareast Islami Life Insurance Co. Ltd.

Fareast LI
Total
Shareholder's

2004

2005

2006

2007

2008

30,000
,000

75,00
0,000

90,00
0,000

99,00
0,000

138,
600,000

Page | 40

equity
Total Assets
Equity Ratio

1,090,540,
958

1,707,21
7,380

2,728,80
2,649

4,316,45
1,403

0.028

0.044

0.033

0.023

64513233
18
0.021

Table
This is a desirable equity ratio from the point of creditors. However, life insurance
companies do not have many creditors. Their business is run on the life insurance fund
made up of all the premiums collected. This analysis shows that the policyholders are
going to get most of the assets in case the company went down. This leverage will surely
attract policyholders who will feel secured about their claims. The ratio has remained low
over the years ranging from 0.044 in 2005 to 0.021 in 2008. Perhaps in 2004, the
company had less number of policyholders and in 2005 that number increased while the
number of shareholders remained steady.

2. Meghna Life Insurance Co. Ltd.

Meghna LI
Total
Shareholder's
equity
Total Assets
Equity Ratio

2004

2005

2006

30,000,000

75,000,000

75,000,000

2007
75,000,000

2008
93,750,000

1,061,028, 1,640,532, 2,421,015, 3,428,383,6 4,747,339,5


245
367
588
00
68
0.028
0.046
0.031
0.022
0.020

Page | 41

The companys equity ratio is fluctuating with a huge rise in 2005 and then falling again
in 2006. Since 2006, it has been slowly decreasing. This is promising to the policyholders
who has claim over the assets after the equity holders. In 2005, the company had its
highest equity ratio possibly due a higher rate of increase of shareholders equity
compared to the rate of increase of policyholders. In 2008, the ratio came down to
0.020.
3. National Life Insurance Co. Ltd.

National LI
Total
Shareholder's
equity
Total Assets
Equity Ratio

2004

2005

2006

45,000,000

51,750,000

64,687,500

2007
77,625,000

4,868,457, 6,466,832, 8,574,310, 10,763,219,


529
539
703
986
0.009
0.008
0.008
0.007

2008
93,150,000
131359243
71

Page | 42

0.007

National life insurance has maintained a steady equity ratio. Though steady the ratio has
been consistently low. It has gradually fallen from 0.009 in 2004 to 0.007 in 2008. Thus,
this company is sending a stable image to its policyholders. This is a good company to
buy policies from.
4. Popular Life Insurance Co. Ltd.

Popular LI
Total
Shareholder's
equity
Total Assets
Equity Ratio

2004

2005

2006

30,000,000

75,000,000

75,000,000

2007
75,000,000

2008
90,000,000

419,705,24 1,054,542, 2,096,968, 3,805,048,0 6,300,791,0


9
780
678
31
29
0.071
0.071
0.036
0.020
0.014

Page | 43

Popular LI initially attracted few policyholders as we can see most of its assets were
covered by the shareholders equity. This has sharply fallen in 2006 to 0.036. It
continued to fall and in 2008 the equity ratio was a mere 0.014. From a policyholders
perspective, this company is doing well.
5. Pragati Life Insurance Ltd.

Pragati LI
Total
Shareholder's
equity
Total Assets
Equity Ratio

2004

2005

2006

30,000,000

75,000,000

75,000,000

2007
75,000,000

2008
75,000,000

256,515,84 2,149,016, 749,077,37 959,350,45


1,253,563,1
7
125
4
3
20
0.117
0.035
0.100
0.078
0.060

Page | 44

Pragati had a low equity ratio to begin with. In 2004, the ratio was 0.117 and then it
sharply fell to 0.035 in 2005. In the same fashion, it took a leap in 2006 to 0.100. Then
it continued to fall in the following years until in 2008 the ratio was 0.060. This is also a
good company to buy policies from.
6. Prime Islami Life Insurance Ltd.

Prime Islami LI
Total
Shareholder's
equity
Total Assets
Equity Ratio

2004

2005

2006

30,000,000

30,000,000

30,000,000

2007
75,000,000

2008
90,000,000

136,858,86 271,067,71 1,923,755, 975,751,84


1,568,282,6
9
5
907
6
80
0.219
0.111
0.016
0.077
0.057

Page | 45

Prime Islami had an equity ratio of 0.219 in 2004 and then the ratio kept falling till 2006.
In 2006, it recorded its lowest equity ratio of 0.016 only. This was very difficult to
manage since having very little equity means there is higher chances of financial
distress. Thus, the company has slowly built up this ratio to a safe position in 2008 to
0.057.
7. Progressive Life Insurance Co. Ltd.

Progressive LI
Total
Shareholder's
equity
Total Assets
Equity Ratio

2004

2005

2006

30,000,000

75,000,000

75,000,000

2007
75,000,000

2008
75,000,000

144,138,34 322,192,01 399,989,57 616,871,89


993,981,68
7
8
6
2
9
0.208
0.233
0.188
0.122
0.075

Page | 46

Progressive LI had an equity ratio of 0.208 in 2004. Then it rose to 0.233 in 2005. After
that, the ratio has fallen gradually. And in 2008, it had an equity ratio of 0.075. This is a
balanced equity ratio which is enough to attract policyholders who are the main source of
income for these companies.
8. Rupali Life Insurance Company Limited

Rupali LI
Total
Shareholder's
equity
Total Assets
Equity Ratio

2004

2005

2006

30,000,000

30,000,000

30,000,000

2007
30,000,000

2008
30,000,000
876426378

239,901,48 342,584,71 511,447,96 788,605,809


4
0
4
0.125
0.088
0.059
0.038

Page | 47

0.034

Rupali LI had an equity ratio of 0.125 in 2004. Since then, the ratio has fallen steadily
and in 2008, it had an equity ratio of 0.034 only. A very low equity ratio is good for
policyholders since they have more stakes in the companys assets.
9. Sandhani Life Insurance

Sandhani LI
Total
Shareholder's
equity
Total Assets
Equity Ratio

2004

2005

2006

34,200,000

39,672,000

47,606,400

2007
57,127,680

2008
71,409,600

966,829,43 1,390,385, 1,979,456, 2,964,694,1 4,127,749,4


3
954
799
68
12
0.035
0.029
0.024
0.019
0.017

Sandhani LI had an equity ratio of 0.035 in 2004. This has slowly fallen over the next
four years. In 2008, the equity ratio was 0.017. This is a good sign for the company as it
is attracting premium income from policyholders and thus reducing the amount of total
assets contributed by the equity holders.
10. Industry performance in 2008

Company
National LI
Fareast LI
Meghna LI
Popular LI
Pragati LI
Prime Islami LI
Progressive LI

Equity ratio
0.007
0.021
0.020
0.014
0.060
0.057
0.075
Page | 48

Sandhani LI
Rupali LI

0.017
0.034

As we can see, the equity ratios for most companies are within 0.030. Some companies
tend to have higher equity ratio such as Pragati, Prime Islami and Progressive. They are
attracting less number of policyholders than the other companies. National is doing very
well with the lowest equity ratio of 0.007.

2.2 Shareholders Equity to Debt ratio


This ratio is yet another measure of the relative equities of owners and creditors. It
shows the number of taka of stockholders equity to one taka of total debt.
1. Fareast Islami Life Insurance Co. Ltd.

Fareast LI
Total
Shareholder's
equity
Total
Liabilities
Debt to
Equity Ratio

2004

2005

2006

2007

2008

30,000,00
0

75,000,000

90,000,000

99,000,000

138,600,00
0

181,336,0 185,471,78 262,677,28 240,572,62 410,117,71


62
1
7
7
4
6.044535 2.4729570 2.9186365 2.4300265 2.9590022
4
8
22
35
66

Page | 49

Fareast has a high debt to equity ratio. In 2004, the Debt-to-equity ratio was 6.044. In
the next year, it fell to 2.47. Then it rose in 2005 to 2.91. This ratio has fallen again in
2007 to 2.43. And in 2008, the ratio was 2.96. This is fluctuating from year to year. It
has 2.96 taka in equity for every taka liabilities.
2. Meghna Life Insurance Co. Ltd.

Meghna LI
Total
Shareholder'
s equity
Total
Liabilities
Debt to
Equity Ratio

2004

2005

2006

2007

2008

30,0
00,000

7
5,000,000

7
5,000,000

7
5,000,000

9
3,750,000

181,0
80,808
6.0360269
33

26
5,474,351
3.5396580
13

33
2,695,914
4.4359455
2

41
1,052,781
5.4807037
47

49
4,499,981
5.2746664
64

Page | 50

In this company, the Debt-to-equity was 6.036 in 2004. Then in 2005, the ratio
decreased by almost half to 3.596.It rose to 4.436 in 2006 and then even higher in 2007
to 5.481. In 2008, it decreased to 5.275. It has 5.275 taka in equity for every taka
liabilities.
3. National Life Insurance Co. Ltd.

National LI
Total
Shareholder's
equity
Total
Liabilities
Debt to Equity
Ratio

2004

2005

2006

2007

2008

45,
000,000

5
1,750,000

6
4,687,500

7
7,625,000

93
,150,000

834,
003,976
18.533

1,010
,761,872
19.532

1,364
,847,472
21.099

1,592
,600,182
20.517

1,633,
149,615
17.532

In this company, the Debt-to-equity was 18.533 in 2004. Then in 2005, the ratio rose to

19.532. It rose to 21.099 in 2006 and then fell slightly to 20.517 in 2007. In 2008, it
decreased to 17.532. It has 17.532 taka in equity for every taka liabilities. It has very
high leverage overall. Thus, it is taking fewer risks.
4. Popular Life Insurance Co. Ltd.

Popular LI
Total
Shareholde
r's equity
Total
Liabilities
Debt to
Equity
Ratio

2004

2005

2006

2007

2008

30,0
00,000

7
5,000,000

7
5,000,000

7
5,000,000

9
0,000,000

101,0
68,553
3.36895176
7

11
7,217,510
1.5629001
33

8
9,997,640
1.1999685
33

8
1,671,688
1.0889558
4

12
9,892,448
1.4432494
22

Page | 51

In 2004, the company had a debt-to-equity ratio of 3.37. In 2005, the ratio fell to

1.56 and even lower in 2006 to 1.199. In 2007, it fell even lower to 1.089. In
2008, the ratio rose again to 1.44.
5. Pragati Life Insurance Ltd.

Pragati LI
Total
Shareholde
r's equity
Total
Liabilities
Debt to
Equity
Ratio

2004

2005

2006

2007

2008

30,00
0,000

7
5,000,000

75,
000,000

7
5,000,000

75
,000,000

50,01
0,527
1.66701756
7

1,783
,623,988
23.781653
17

137,
936,153
1.83914870
7

8
9,686,023
1.1958136
4

119
,702,591
1.59603454
7

Page | 52

In 2004, the ratio was 1.667. Then in 2005, it rose sharply to 23.781. In 2006, it fell just
as dramatically to 1.891. Then it fell even more in 2007 to 1.196. In 2008, the ratio
went up to 1.59 again. So, the company has 1.59 taka for every taka liability.
6. Prime Islami Life Insurance Ltd.

Prime Islami
LI
Total
Shareholder'
s equity
Total
Liabilities
Debt to
Equity Ratio

2004

2005

2006

2007

2008

30,0
00,000

3
0,000,000

30,
000,000

7
5,000,000

90
,000,000

14,1
96,772
0.4732257
33

2
8,798,588
0.9599529
33

1,455,
112,500
48.50375

5
2,629,766
0.7017302
13

90
,046,570
1.00051744
4

Page | 53

In 2004, the debt-to-equity ratio was only 0.473. Then in 2005, the ratio rose to 0.959.
In 2006, the ratio was the highest with 48.503. In 2007, it fell again to 0.701. In 2008,
the ratio was 1.000. So, for every taka of liability or debt, there is 1.000 taka of equity.
7. Progressive Life Insurance Co. Ltd.

Progressive
LI
Total
Shareholder'
s equity
Total
Liabilities
Debt to
Equity Ratio

2004

2005

2006

2007

2008

30,0
00,000

7
5,000,000

7
5,000,000

7
5,000,000

7
5,000,000

40,5
36,947
1.3512315
67

8
7,453,375
1.166045

5
0,346,897
0.6712919
6

4
8,934,009
0.6524534
53

4
9,922,497
0.6656332
93

In 2004, the debt-to-equity ratio was 1.351. Then in 2005, the ratio was 1.166 which fell
to 0.671 in 2006. It fell even more in 2007 to .652. Then it rose slightly to 0.665 in
2008. For every 1 taka liability, there is 0.665 taka equity only. So, the company is
heavily levered.
8. Rupali Life Insurance Company Limited

Rupali LI
Total
Shareholder'
s equity
Total
Liabilities
Debt to
Equity Ratio

2004

2005

2006

2007

2008

30,000,000

30,000,000

30,000,000

30,000,000

30,000,000

30,626,344 33,131,332 20,672,019 13,701,179 17,422,876


1.0208781 1.1043777 0.6890673 0.4567059 0.5807625
33
33
67
33
Page | 54

In 2004, Rupali had a debt-to-equity ratio of 1.021. In 2005, the ratio rose to 1.104
which was the highest in all the five years the data was taken. Then in 2006, the ratio
fell to 0.689 and even lower in 2007 to 0.457. In 2008, it rose slightly to 0.580. For
every 1 taka liability the company has 0.580 taka of equity only.
9. Sandhani Life Insurance

Sandhani LI
Total
Shareholder's
equity
Total
Liabilities
Debt to
Equity Ratio

2004

2005

2006

2007

2008

34,
200,000

3
9,672,000

4
7,606,400

5
7,127,680

7
1,409,600

231,
184,384
6.759777
31

24
8,237,210
6.2572396
15

26
5,171,476
5.5700804
09

27
4,734,053
4.8091232
31

28
7,790,249
4.0301338
9

Page | 55

In 2004, the ratio was 6.759. Then in 2005, it fell slightly to 6.257. In 2006, it fell even
more to 5.570. It continued to fall gradually and in 2008, the ratio was 4.030. So, for
every taka of liability, there was 4.030 taka of equity.
10. Industry performance in 2008

Company
National LI
Fareast LI
Meghna LI
Popular LI
Pragati LI
Prime Islami LI
Progressive LI
Sandhani LI
Rupali LI

Debt-to- Equity
ratio
17.532
2.959002266
5.274666464
1.443249422
1.596034547
1.000517444
0.665633293
4.03013389
0.580762533

Page | 56

As we can see, the companies are in general having low debt-to-equity ratio. Only
National LI has a very high debt to equity ratio. It is heavily financed by equity. Other
companies are riding more on debt instruments.

3 Profitability Ratio
Profitability, i.e. ability of a company to earn profits, is an important measure of a
companys operating success. Generally, we are concerned with two areas when judging
profitability a. Relationships on the income statement that indicates a companys ability
to recover costs and b. Relationships of income to various balance sheet measures that
indicate the companys relative ability to earn income on assets employed.
Present company investors and potential company investors are both interested in the
profitability of companies. These investors wish to predict future dividends and changes
in the market price of the companys common stock. Since both dividends and price
changes are likely to be influenced by earnings, investors may seek to predict earnings,
which is possible once they take into account the companys profitability record.

3.1 Rate of Return on Assets (ROA)


This ratio shows the relationship of net operating income to operating assets, and is the
best measure of earnings performance without regard to the sources of assets. ROA
shows the earning power of the company as a bundle of assets. It excludes all the non
operating assets and non operating income elements, and by doing so, it measures the
profitability of the company in terms of carrying out its primary business functions.

Page | 57

1. Fareast Islami Life Insurance Co. Ltd.

Fareast LI

2005

2006

2007

2008

Net
income
Average
Total Asset
ROA

566,972,608

928,912,206

1,600,097,885

1,924,465,918

1,398,879,16 2,218,010,015
3,522,627,026
5,383,887,361
9
0.405304919
0.418804334
0.454234261
0.357449142

In 2005, the company had ROA of 0.405 which slowly rose and in 2007, it reached
0.454. In 2008, this ratio fell a little bit to 0.357. ROA has slightly fallen and this is
resulting from low turnover, indicating poor asset management, and low profit margin.
However, 0.357 is still a very high ratio and the company is doing well.
2. Meghna Life Insurance Co. Ltd.

Meghna LI

2005

2006

2007

2008

Net income
450,110,579 713,261,658
Average Total
Asset
ROA

1350780306

2030773978

0.33322264

0.351226511

929,011,145

1,216,758,76
8
2924699594
4087861584

0.317643271

0.297651656

Page | 58

In 2005, the ratio was 0.33 and it had risen in 2006 to 0.351. However, in 2008, the
ratio fell to a 0.297. This is bad asset management in the recent years.
3. National Life Insurance Co. Ltd.

National LI
Net income

2004
1,123,923,
262

Average Total
Asset
ROA

2005
1,415,918,
452

2006
1,733,691,
846

2007
1,947,073,
518

2008
2,322,401,3
62

4,245,836, 5,667,645, 7,520,571, 9,668,765, 11,949,572,


076
034
621
345
179
0.2647118 0.2498248 0.2305266 0.2013776 0.19435016
83
29
05
78
8

Page | 59

The ROA is consistently falling for National LI. This is not a good sign as the return on
asset is decreasing. In 2008, they has a ROA of 0.194 which is very low compared to the
peer companies.
4. Popular Life Insurance Co. Ltd.

Popular LI

2005

2006

2007

2008

Net income
Average Total
Asset

573,688,574 1,069,645,76
8

1,716,405,30
5

2,432,522,23
8

737,124,015 1,575,755,72
9

2,951,008,35
5

5,052,919,53
0

0.7782796

0.5816335

0.4814093

ROA
0.6788145

In this company, the ROA is again seen to be declining. In 2005, it had an ROA of 0.778.
But in 2008, this came down to 0.481. However, it is still better than many companies in
this industry.
5. Pragati Life Insurance Ltd.

Pragati LI

2005

2006

2007

2008

Net income
113,886,817 245,749,084
Average Total
Asset
ROA

258,523,209

264,196,099

1,202,765,9 1,449,046,75 854,213,914


1,106,456,78
86
0
7
0.09468742
0.16959362 0.302644578
0.238776699
7

Page | 60

This company has a promising trend of ROA. The return on asset has increased from
0.094 in 2005 to 0.302 in 2007. And in 2008 it has fallen again to 0.239. The company
needs to look at ways to make their assets more productive.
6. Prime Islami Life Insurance Ltd.

Prime Islami
LI
Net income

2005

2006

119,607,030 226,374,280
Average Total
Asset
ROA

2007

409,478,673

2008

540,114,030

203,963,292 1,097,411,81 1,449,753,87 1,272,017,26


1
7
3
0.58641449 0.206280156 0.282447027
0.424612185
1

Page | 61

Prime LI started off with a very good ROA in 2005 with 0.586 which they could not hold
on to. This fell by almost half in 2006 to 0.206. Then it slightly rose to 0.282 in 2007 and
in 2008, the management has taken good steps as the ROA has come up to 0.424 or
42%.
7. Progressive Life Insurance Co. Ltd.

Progressiv
e LI
Net income

2004

45,520,81
6
Average
Total Asset
ROA

2005

85,856,59
5

2006

114,539,87
0

2007

218,799,66
7

2008

375,587,57
4

117,165,8 233,165,1 361,090,79 508,430,73 805,426,79


08
83
7
4
1
0.3885162 0.3682221 0.31720517 0.43034311 0.46632118
15
94
7
7
3

Page | 62

In 2004, the ROA was 38.8% which increased to 36.8% in 2005. It remained
consistently highly over the five year period and in 2008, the return on asset was
46.6%. This company is good in managing their assets.
8. Rupali Life Insurance Company Limited

Rupali LI

2004

2005

2006

2007

2008

Net income
61,480,99
2
Average
Total Asset
ROA

100,275,9
23

181,483,75
4

284,206,93
0

84,098,872

209,662,3 291,243,0 427,016,33 650,026,88 832,516,09


93
97
7
7
4
0.2932380 0.3443031 0.42500424 0.43722334 0.10101771
53
75
1
6
3

Page | 63

In 2004, Rupali LI had an ROA of 29.3% which slowly rose over the years to reach
43.7% in 2007. However, in 2008 something went wrong as the ROA fell to 10.1%. Then
in 2009 they have enlisted themselves in stock exchange with 40% shares held by the
sponsors and 60% held by general public.
9. Sandhani Life Insurance

Sandhani LI

2004

2005

2006

2007

2008

Net income
237,060,960 401,031,695 554,680,899
Average Total
Asset
ROA

904,179,095

1,109,845,98
9

817,553,630 1,178,607,6 1,684,921,37 2,472,075,48 3,546,221,79


94
7
4
0
0.28996380 0.34025884 0.329202838 0.365757074
0.312965758
4
7

Page | 64

In 2004, the ROA of Sandhani was 28.99% which then rose slowly over the years to
reach 36.5% in 2007. Then in 2008, the rate of return came down to 31.3%.
10. Industry performance in 2008

Company
National LI
Fareast LI
Meghna LI
Popular LI
Pragati LI
Prime Islami
LI
Progressive
LI
Sandhani LI
Rupali LI

ROA
0.194350168
0.357449142
0.297651656
0.481409257
0.238776699
0.424612185
0.466321183
0.312965758
0.101017713

Page | 65

The industry as a whole has performed less efficiently in 2008 compared to the previous
years. The best performing company was Popular LIC with 48.1% ROA followed closely
by Progressive LIC with an ROA of 42.5%. Rupali had the lowest ROA of only 10.1%.

3.2 Rate of Return on Equity (ROE)


This is the rate of return on the money owned by the common stockholders.
From the investors point of view, this is an important measure of the income-producing
ability of a company, because it tells them what return is earned by the company on
each taka of stockholders equity invested.
1. Fareast Islami Life Insurance Co. Ltd.

Fareast LI
Net income
Avg shareholder's
equity
ROE

2005

2006

2007

566,972,60
8

928,912,20
6

1,600,097,
885

52,500,000

82,500,000

94,500,000

10.799478
25

11.259541
89

2008
1,924,465,
918

118,800,00
0
16.932252 16.199208
75
06

Page | 66

Fareast is gradually increasing their return on equity. In 2005, they had only 10.8 ROE
while in 2008, this increased to 16.2. This is a good sign for the company since the
equity holders are getting more.
2. Meghna Life Insurance Co. Ltd.

Meghna LI
Net income
Avg shareholder's
equity
ROE

2005

2006

2007

450,110,57
9

713,261,65
8

929,011,14
5

2008
1,216,758,
768

52,500,000 75,000,000 75,000,000 84,375,000


8.5735348 9.5101554 12.386815 14.420844
38
4
27
66

Page | 67

In terms of ROE, Meghna LI is showing a slow rise in their profitability. In 2005, they had
an ROE of only 8.57 while in 2008, their ROE rose to 14.4.
3. National Life Insurance Co. Ltd.

National LI
Net income

2004
1,123,923,
262

2005
1,415,91
8,452

40,500
,000

48,37
5,000

27.751

29.270

Avg
shareholder's
equity
ROE

2006
1,733,691,84
6
58,218,750
29.779

2007
1,947,073,
518

2008
2,322,40
1,362

71,156
,250

85,38
7,500

27.363

27.198

National LI had a rising ROE from 2004 to 2006. However, the ROE came down in 2007.
In the same period that their ROE came down, they had started the construction of NLIC
Tower in Karwan Bazar. This may have resulted in large cash outflow whose impact on
profitability will be long term. Still, it is a very profitable company.
4. Popular Life Insurance Co. Ltd.

Popular LI
Net income

2005
573,688,57
4

Avg shareholder's
equity
ROE

2006
1,069,645,
768

2007
1,716,405,
305

2008
2,432,522,
238

52,500,000 75,000,000 75,000,000 82,500,000


10.927401 14.261943 22.885404 29.485118
41
57
07
04

Page | 68

This company shows a gradual rise in ROE from 2005 to 2008. The company had an ROE
of only 10.9 in 2005 which increased to 29.5 by 2008. Their business is becoming more
profitable.
5. Pragati Life Insurance Ltd.

Pragati LI
Net income
Avg shareholder's
equity
ROE

2005

2006

2007

2008

113,886,81
7

245,749,08
4

258,523,20
9

264,196,09
9

52,500,000 75,000,000 75,000,000 75,000,000


2.1692727 3.2766544 3.4469761 3.5226146
05
53
2
53

Graph

Page | 69

In 2005, the company had an ROE of 2.17. And this continued to rise. This shows that
the company is highly leveraged by debt and thus the equity holders are a minority here.
The current ROE is 3.52 in 2008.
6. Prime Islami Life Insurance Ltd.

Prime Islami LI
Net income
Avg shareholder's
equity
ROE

2004

2005

2006

2007

2008

64,344,811

119,607,03
0

226,374,28
0

409,478,67
3

540,114,03
0

30,000,000 30,000,000 30,000,000 52,500,000 82,500,000


2.1448270
3.986901 7.5458093 7.7995937 6.5468367
33
33
71
27

This company also had a low ROE of 2.14 in 2005. In 2008, the ROE was only 6.54. So,
this company is not doing well compared to the other companies in its industry.
7. Progressive Life Insurance Co. Ltd.

Progressive LI
Net income
Avg. shareholder's
equity
ROE

2004

2005

2006

2007

2008

45,520,816

85,856,595

114,539,87
0

218,799,66
7

375,587,57
4

30,000,000 52,500,000 75,000,000 75,000,000 75,000,000


1.5173605 1.6353637 1.5271982 2.9173288 5.0078343
33
14
67
93
2

Page | 70

Progressive LI had an ROE of 1.51 in 2004. In 2008, the return on equity rose to 5.00.
Still, the company provides less return to equity holders than many other companies in
the same industry.
8. Rupali Life Insurance Company Limited

Rupali LI
Net income
Avg shareholder's
equity
ROE

2004

2005

2006

2007

2008

61,480,992

100,275,92
3

181,483,75
4

284,206,93
0

84,098,872

30,000,000 30,000,000 30,000,000 30,000,000 30,000,000


2.0493664 3.3425307 6.0494584 9.4735643 2.8032957
67
67
33
33

Page | 71

Rupali LI had an ROE of 2.05 in 2004 and in 2007 they had their highest in the five years
analyzed with ROE of 9.47. However, in 2008, this fell drastically to 2.80.
9. Sandhani Life Insurance

Sandhani LI
Net income
Avg shareholder's
equity
ROE

2004

2005

2006

2007

237,060,96
0

401,031,69
5

554,680,89
9

904,179,09
5

2008
1,109,845,
989

32,100,000 36,936,000 43,639,200 52,367,040 64,268,640


7.3850766 10.857474 12.710611 17.266186 17.268857
36
96
08
8
55

In 2004, Sandhani LI had an ROE of 7.38. This has continued to rise and in 2007, their
ROE was 17.26. It rose very slightly in 2008. This company managed to maintain their
ROE in 2008 despite most companies performing poorly in that year.

Page | 72

10. Industry performance in 2008

Company
National LI
Fareast LI
Meghna LI
Popular LI
Pragati LI
Prime Islami LI
Progressive LI
Sandhani LI
Rupali LI

ROE
27.198
16.19920806
14.42084466
29.48511804
3.522614653
6.546836727
5.00783432
17.26885755
2.803295733

In 2008, the most profitable company to invest in was Popular LI closely followed by
National LI. The least profitable company to invest in was Rupali LI. Therefore it comes
as no surprise that in 2009, Rupali LI enlisted themselves in the stock market to raise
capital.

4 Market Test Ratios


Certain ratios are computed using information from the financial statements and
information about market price of the companys stock. These tests help investors and
potential investors assess the relative merits of the various stocks in the marketplace,
and help them in taking decisions about which companies to invest, or which companies
to keep on holding shares.

Page | 73

4.1 Dividends Yield on Common Stock


The dividend paid per share is also of much interest to common stockholders. When the
current annual dividend per share is divided by the current market price per share, the
result is called the dividend yield on common stock. This information is found in the DSE
website given in percentage yield.
Table: % Dividend

Meghna Life
National Life
Popular
Pragati
Progressive
Fareast
Sandhani
Prime Islami
Rupali

2004
10%C
20c+15B
10C
n/a
n/a
10C+20B
16B
n/a
n/a

2005
12%C
15C+25B
12C
n/a
n/a
30C+10B
20B
n/a
n/a

2006
25%B
20C+20B
20B
12C
n/a
40C+40B
20B
n/a
n/a

2007
5%C+30%B
20C+20B
20B
10C
n/a
5C+40B
25B
20B
n/a

2008
n/a
50B
n/a
10C
10B
35B
30B
n/a

Table: Percentage Dividend Yield on Common Stock

FarEast LI
Meghna LI
Pragati LI
National LI
Popular LI
Rupali LI
Sandhani LI
Progressive
LI
Prime
Islami LI

2004
n/a

2005
1.27

2006
4.35

2007
n/a

2008
n/a

n/a
n/a
1.22
n/a
n/a
n/a
n/a

2.28
n/a
1.51
1.3
n/a
n/a
n/a

3.05
2.92
1.7
1.6
n/a
n/a
n/a

n/a
0.79
1.78
n/a
n/a
n/a
n/a

n/a
n/a
n/a
n/a
n/a
n/a
n/a

n/a

n/a

n/a

n/a

n/a

From the above table, we can see that most of the companies do not give dividends over
the analyzed years of 2004-2008. Some companies gave dividends only in 2005,2006.
Except National LI, all other companies who give dividend provided that only in 2 years.

5 Industry Specific Ratios


These ratios are used for evaluating a particular industry which cannot be applied to
other industries. Life insurance being a service industry reports the ratio shown below:
Page | 74

5.1 Management expense to premium ratio


This is a special kind of ratio only to measure insurance companies performances. This
depicts how much of total management costs are covered by the premiums earned.
1. Fareast Islami Life Insurance Co. Ltd.

Fareast LI
Management
Expense

2004
339,962,
704

2005
447,933,
510

Total Premium

756,440,776

1,110,549,035

Management
Expense to
Premium

44.94%

40.33%

2006

2007

2008

687,058,
896

824,252,3
1,182,621,
20
326
1,727,890,593
2,386,990, 3,194,548,
070
005
39.76%
34.53%
37.02%

Page | 75

The graph shows that management expense to premium ratio has been declining over
the year. The ratio came lowest in 2007 of 34%. It shows that the company has been
efficient enough to keep the difference between revenue and expense higher and thus
keep a considerable amount of cash surplus in the life insurance fund. Moreover, the
ratio is much lower than the industry average which reflects higher efficiency.
2. Meghna Life Insurance Co. Ltd.

Meghna LI
Management
Expense

2004
387,072,
601

Total Premium

758,960,412

Management
Expense to
Premium

51.00%

2005

2006

2007

2008

526,557,
457

643,387,29 762,303,56 943,456,47


7
2
1
1,067,925,820
1,480,839, 1,836,537, 2,308,581,
303
877
577
49.31%
43.45%
41.51%
40.87%

Page | 76

The graphs shows that the company is trying hard to keep pace with the rising
management expenses. The ratio is gradually decreasing over the year, mainly due to its
continuous effort to increase its revenue from premium,

Page | 77

3. National Life Insurance Co. Ltd.

National LI
Management
Expense
Total Premium
Management
Expense to
Premium

2004

2005

2006

2007

2008

1,406,542, 1,619,869, 1,760,982, 1,846,925, 2,096,951,


381
525
615
399
099
21203283 26691822 31511259 35341010 40596903
89
37
69
19
46
66.34%
60.69%
55.88%
52.26%
51.65%

Though doing good in other parts, this company is struggling hard to keep pace with the
management expenses. The ratio is above the industry average which shows inefficiency
in expanding its number of policyholders.
Page | 78

4. Popular Life Insurance Co. Ltd.

Popular LI
Management
Expense
Total Premium
Management
Expense to
Premium

2004

2005

2006

2007

2008

325,699, 795,936, 1,250,531, 1,416,630, 1,758,190,


770
129
055
666
285
5000617 1365074 22505485 30179689 39274625
56
273
86
91
53
65.13%

58.31%

55.57%

46.94%

44.77%

Popular Life Insurance Company has been consistent in increasing its number of
policyholders. The growth of number of policyholders was almost identical as shown in

Page | 79

the graphs above. In 2007-2008, the company significantly curbed its expenses which
lead to lower value of the ratio.

5. Pragati Life Insurance Ltd.

Pragati LI
Management
Expense
Total Premium
Management
Expense to
Premium

2004

2005

2006

2007

2008

119,927,851

179,957,243

269,382,333

317,674,174

499,089,452

231,797,899

345,690,547

552,685,025

563,776,063

725,644,275

48.74%

56.35%

68.78%

51.74%

52.06%

Page | 80

Pragatis most efficient year in terms of this ratio was 2006. However as the graph
shows, the companys revenue from premiums declined drastically which led to increase
in ratio way above the industry average. The company is still struggling to increase its
revenue.
6. Prime Islami Life Insurance Ltd.

Prime Islami LI
Management
Expense
Total Premium
Management
Expense to Premium

2004

2005

2006

2007

2008

113,794, 210,147, 324,952, 388,364, 468,131,


775
463
199
165
122
1823910 3429057 5623287 8153253 1010209
23
12
88
00
750
62.39%
61.28%
57.79%
47.63%
46.34%

Page | 81

Prime Islami LI has very gradually lowered their Management Expense to Premium

ratiothroughout the period. Its ratio is lower than industry average which is
commendable. It is due to the increasing difference between revenue from premiums
and expenses.
7. Progressive Life Insurance Co. Ltd.

Progressive LI
Management
Expense
Total Premium
Management
Expense to Premium

2004

2005

2006

2007

2008

144,463, 223,637, 295,568, 295,904, 422,097,


565
989
746
634
142
2079629 3384521 4739831 5880510 8329166
60
58
79
85
56
69.47%
66.08%
62.36%
50.32%
50.68%

Page | 82

Progressives ratio is almost the same as industry average. However, whats mentionable
here is that they cut back their expenses significantly in 2007 which lowered the ratios
value. However, the growth of number of policyholder remained identical.
8. Rupali Life Insurance Company Limited

Rupali LI
Management
Expense
Total Premium
Management
Expense to
Premium

2004

2005

2006

2007

2008

163,265,
225,619,
313,640,
373,268,
220,161,4
185
613
725
150
24
2439814
3607697
5535565
7163415 35109577
59
97
96
31
9
66.92%
62.54%
56.66%
52.11%
62.71%

Page | 83

The graph shows a very interesting fact about companys present condition. In 2007, the
companys revenue and expenses both jumped up, but in 2008, its premium revenue
slacked. Rather than trying to increase revenue the company decided to cut its expenses
to keep the ratio close to industry average.
9. Sandhani Life Insurance

2004

2005

2006

2007

2008

Management Expense

376,357,980

596,004,525

752,961,978

780,746,641

Total Premium

705,995,677

1,120,624,812

1,713,230,847

1,902,827,885

Management Expense
to Premium

53.31%

53.19%

706,866,66
9
1,351,499,
678
52.30%

43.95%

41.03%

Sandhani LI

Page | 84

Sandhani shows a consistent decline in ratio mainly due to its revenue recognition. The
ratio is way below the industry average which is a good indication of companys
performance.
10.Industry Analysis:

Company
National LI
Fareast LI
Meghna LI
Popular LI
Pragati LI
Prime
Islami LI
Progressiv
e LI
Rupali LI
Sandhani
LI
Industry
average

Management Expense to
Premium
51.65%
37.02%
40.87%
44.77%
68.78%
46.34%
50.68%
62.71%
41.03%
49.32%

As we can see that most companies are near or below the industry average. Only two
companies contributed significantly to keep the ratio go higher above 45%. If those two
are ignored the industry average reaches close to 44%.

Page | 85

Appendix:
The items used to calculate certain accounts are given below:
Current assets:
1.
2.
3.
4.
5.
6.

Cash, Banks and other balances


sundry debtors
Deferred premium on BGTB
interest, dividend accruing but not due
outstanding premium
shares

Current liabilities:
1.
2.
3.
4.
5.

sundry creditors
proposed div
deferred discount income
premium deposits
Claim Under Policies

REFERENCES :
Annual
Annual
Annual
Annual
Annual
Annual
Annual
Annual

Reports
Reports
Reports
Reports
Reports
Reports
Reports
Reports

of
of
of
of
of
of
of
of

National Life Insurance Co. Ltd. 2004-2008


Fareast Islami Life Insurance Co. Ltd. 2004-2008
Meghna Life Insurance Co. Ltd. 2004-2008
Popular Life Insurance Co. Ltd. 2004-2008
Pragati Life Insurance Co. Ltd. 2004-2008
Prime Islami Life Insurance Co. Ltd. 2004-2008
Progressive Life Insurance Co. Ltd. 2004-2008
Rupali Life Insurance Co. Ltd. 2004-2007 and half-yearly report

of 2008
Annual Reports of Sandhani Life Insurance Co. Ltd. 2004-2008
http://www.deltalife.org (Business Growth Statistics 2004-2008)
http://www.businessdictionary.com
http://www.investorwords.com
Financial Reporting and Analysis, CFA PROGRAM CURRICULUM. VOLUME 3
http://www.dsebd.org/displayCompany.php?name=MEGHNALIFE
http://www.dsebd.org/displayCompany.php?name=NATLIFEINS
http://www.dsebd.org/displayCompany.php?name=POPULARLIF
http://www.dsebd.org/displayCompany.php?name=PRAGATILIF
http://www.dsebd.org/displayCompany.php?name=PROGRESLIF
http://www.dsebd.org/displayCompany.php?name=FAREASTLIF
http://www.dsebd.org/displayCompany.php?name=SANDHANINS
http://www.dsebd.org/displayCompany.php?name=RUPALILIFE
http://www.dsebd.org/displayCompany.php?name=PRIMELIFE

FINANCIAL STATEMENT INPUTS:


1. Fareast Islami Life Insurance Co. Ltd.

Balance Sheet
Amount in Taka
CAPITAL AND LIABILITIES

2004

2005

2006

2007

2008

SHAREHOLDERS' CAPITAL
Authorised
10,00,000 Ordinary Shares of Tk. 100/- each

100,000,000

100,000,000

100,000,000

250,000,000

250,000,000

30,000,000

75,000,000

90,000,000

99,000,000

138,600,000

878,864,896

1,445,837,504

2,374,749,710

3,974,847,595

5,899,313,513

340,000

908,095

1,375,652

2,031,181

3,292,091

2,148,606

3,724,964

2,837,411

3,202,133

4,045,896

claims whether due or intimated.

19,857,529

18,256,921

57,160,113

46,517,094

39,100,089

Loan & Advance (Quard)

54,000,000

54,000,000

54,000,000

Sundry Creditors

70,416,577

84,148,723

115,263,742

179,909,905

355,622,400

Premium Deposits

34,913,350

25,341,173

33,416,021

10,943,495

11,349,329

181,336,062

185,471,781

262,677,287

1,090,540,958

1,707,217,380

2004

913,351

Issued, Subscribed and Paid-Up


Balance of Fund and Accounts

Life Takaful Fund


Welfare Fund
Liabilities and Provisions
Amount due to other persons or bodies
Carrying on Insurance Business
Estimated Liabilities in Respect of Outstanding

Total

240,572,627

410,117,714

2,728,802,649

43164514
03

64513233
18

2005

2006

2007

2008

2,792,696

6,665,480

15,885,586

33,322,544

52384890

311575530

Amount in Taka

PROPERTY AND ASSETS


Loan
On Insurer's Policies within their surrender value
Investment (At Cost)
Shares and bonds
Statutory Deposit with Bangladesh Bank (NIB)
Equity Share in CDBL

4,000,000

4,000,000

1,000,000

1,000,000

1,000,000

1,000,000

1,000,000

56,000,000

352,000,000

407,000,000

534,500,000

970,500,000

61,000,000

357,000,000

408,000,000

587,884,890

1,283,075,530

Outstanding Premium

58,390,412

58,122,367

52,581,522

48,007,190

25,065,862

Profit, Dividend & Rent Accrued but not Due

Islami Investment Bond with Bangladesh Bank

32,640,070

48,071,132

95,355,880

157,784,745

252,588,140

Advances, Deposits and Prepayments

9,200,794

24,372,634

39,412,646

84,181,234

116,920,082

Sundry Debtors

6,078,953

1,645,499

1,461,502

59,987,615

1,406,144

3,095,163

3,095,163

2,476,130

1,857,097

695,664,989

942,104,055

1,621,421,485

2,305,600,706

3,410,065,086

SND & CD with Banks

92,567,015

98,764,130

182,124,899

404,465,693

441,028,417

Collection in Hand

31,196,012

51,463,674

90,146,122

263,289,723

408,027,535

Initial Public Offering (IPO) Expenses


Cash, Bank and Other Balances
Fixed Deposit with Banks

Cash in Hand

Stamps in Hand
Printing & Stationery in Hand
Fixed Assets (At Cost Less Depreciation)
Total

1,845,150

1,632,608

3,365,382

1,402,746

2,869,290

821,273,166

1,093,964,467

1,897,057,888

2,974,758,868

4,261,990,328

1,231,320

954,918

1,540,310

3,521,773

2,406,642

836,480

1,177,511

3,271,715

1,445,746

2,031,477

98,976,412

116,020,993

220,360,543

1,090,540,958

1,707,217,380

2,728,802,649

380,517,626

43164514
03

470,659,472

64513233
18

Life Revenue Account


Amount in Taka
BALANCE OF FUND AT THE BEGINNING
OF THE YEAR

2004

2005

2006

466,704,673

878,864,896

1,445,837,504

ADJUSTMENT MADE DURING THE YEAR

First year premium (Sharbojonin Bima)

Renewal premium (Ekok Bima)


Renewal premium (Sharbojonin Bima)

313,210,338

438,211,252

670,120,518

37,597,042

71,261,871

117,917,446

350,807,380

509,473,123

788,037,964

354,096,966

525,535,431

817,125,095

54,768,814

77,430,601

123,735,642

408,865,780

602,966,032

940,860,737

Group Insurance Premium


Gross premium
Less: Re-Insurance premium
Net Premium
PROFIT, DIVIDEND AND RENT
OTHER INCOME
Total
Total revenue

2008
3,974,847
,595

818,171,3
19
133,431,7
65
951,603,0
84
1,234,687
,403
201,439,7
93
1,436,127
,196
265,884
2,387,996
,164
1,006,094
2,386,990
,070
300,235,2
06
2,650,198
5,064,625
,184
2,689,875
,474
2,007

1,004,749
,934
205,172,0
11
1,209,921
,945
1,716,143
,139
271,492,0
22
1,987,635
,161
282,545
3,197,839
,651
3,291,646
3,194,548
,005
430,442,6
53
2,432,521
7,602,270
,774
3,627,423
,179
2,008

121,000

PREMIUM LESS RE-INSURANCE


First year premium (Ekok Bima)

2007
2,374,749
,710

10,026
759,673,160

1,112,449,181

1,728,898,701

3,232,384

1,900,146

1,008,108

756,440,776

1,110,549,035

1,727,890,593

53,517,586

75,501,522

150,801,793

343,932

367,229

1,015,966

1,277,006,967

2,065,403,682

3,325,545,856

810,302,294

1,186,417,786

1,879,708,352

2,004

2,005

2,006

4,394,617

7,086,017

12,456,575

42,746,122

139,639,833

211,278,761

1,138,628

1,921,267

3,997,281

CLAIMS UNDER POLICIES (INCLUDING


PROVISION FOR
CLAIMS DUE OR INTIMATED) LESS REINSURANCE
By Death
By Maturity
By Survival
By Surrender
By Others
48,279,367
Participants Bonus
48,279,367
EXPENSES OF MANAGEMENT

148,647,117

227,732,616

485,551

4,634

149,132,668

227,737,250

7,727,103
1,041,412
236,036,0
65
6,918,293
75,000
251,797,8
73
43,198
251,841,0
71

18,447,28
6
1,145,959
387,687,0
32
17,941,32
1
425,221,5
98
425,221,5
98

Commission :
(a) Commission to Insurance Agents
(less that on Re-Insurance)

166,265,530

215,731,307

357,862,046

62,763,582

96,553,092

162,806,725

229,029,112

312,284,399

520,668,771

110,933,592

135,649,111

166,390,125

339,962,704

447,933,510

687,058,896

(b) Allowances and Commission


(other than commission including in Sub-Item
(a) above)

Salaries etc.

Other Expenses
Depreciation on fixed assets
IPO written off
Income Tax

398,656,4
97

520,699,0
29

197,958,2
49
596,614,7
46
227,637,5
74
824,252,3
20

306,601,6
74
827,300,7
03
355,320,6
23
1,182,621
,326

13,065,16
5
619,033

20,749,30
4
619,033
34,146,00
0
55,514,33
7

13,684,19
8

Proposed Dividend
Cash Dividend

9,000,000

7,500,000

27,000,000

15,000,000

9,000,000

39,600,00
0

9,900,000

22,500,000

36,000,000

39,600,00
0

878,864,896

1,445,837,504

2,374,749,710

1,277,006,967

2,065,403,682

3,325,545,856

Bonus Share
Distribution Tax

900,000

Balance of Fund at the end of the year


as shown in the Balance Sheet
Total

3,974,847
,595
5,064,625
,184

5,899,313
,513
7,602,270
,774

2. Meghna Life Insurance Co. Ltd.

Balance Sheet
2004

2005

2006

2007

2008

100,000,000

100,000,000

100,000,000

100,000,000

100,000,000

30,000,000

75,000,000

75,000,000

75,000,000

93,750,000

1,300,058,016

2,013,319,
674

2,942,330,
819

4,159,089,
587

SHARE CAPITAL :
AUTHORISED
1,000,000 Ordinary shares of Tk. 100 each

ISSUED, SUBSCRIBED & PAID UP


750,000 Ordinary shares of Tk. 100 each
Fully paid up in cash
BALANCE OF FUNDS AND ACCOUNTS
Life Insurance Fund (Annexure-I)
LIABILITIES AND PROVISIONS

849,947,437

Estimated Liabilities in respect of


Outstanding claims whether due or intimated

41,327,628

78,361,423

1,679,269

3,184,610

130,026,682

170,437,498

112,784,03
8

181,717,95
2

259,577,95
5

3,717,370
184,239,23
5

1,229,075
218,555,77
4

541,800
219,201,48
1

31,955,271
332,695,91
4
2,421,015,
588

9,549,980
411,052,78
1
3,428,383,
600

15,178,745
494,499,98
1
4,747,339,
568

23,989,33
5
8,674,823
15,314,512
556,630,2
34

22,346,79
5
6,711,970
15,634,825
895,887,0
82

20,548,59
4
5,435,884
15,112,710
1,307,143
,116

4,000,000

4,000,000

Amount due to other person or bodies


carrying on Insurance Business.
Sundry Creditors
Proposed Dividend
Premium Deposit

7,500,000
8,047,229

5,990,820

Total liabilities

181,080,
808

265,474,
351

TOTAL TAKA

1,061,028,245

1,640,532,367

13,168,379

18,546,312

On mortgage of properties

4,897,834

6,607,512

On Insurer's Policies within their Surrender Value

8,270,545

11,938,800

222,598,587

382,940,535

4,000,000

4,000,000

Jatio Biniog Bond

94,700,000

122,300,000

Bangladesh Govt. Treasury Bond

52,571,000

155,648,500

4,000,000

18,500,000

Shares

33,455,312

48,727,705

House Property (At Cost Less Depreciation)

33,872,275

33,764,330

487,238

590,928

69,986,944
34,114,540
205,092

Outstanding Premium

24,242,001

12,497,693

50,057,037

130,800,00
0
587,093,85
9
13,000,000
114,965,21
8
46,028,005
145,100
103,492,50
5

Interest, Dividend and Rents accrued but not due-

22,468,490

39,469,379

Advance, Deposit and Prepayments.

13,428,745

18,745,628

4,943,781

5,643,190

CASH AND BANK BALANCES

688,634,381

1,084,894,092

Fixed Deposit with Banks

212,225,601

426,015,233

Short Term Deposit

244,697,526

335,522,694

Current Account

103,063,925

214,287,746

2,901,176

2,443,583

125,746,153

1,066,248,361

60,809,391
34,333,469
9,734,279
1,589,564
,462
727,355,06
8
429,829,26
9
311,667,73
1
2,616,382
118,096,01
2

85,822,940
47,947,831
27,054,746
2,133,047
,560
1,111,939,
201
503,058,06
6
399,065,04
5
16,651,575
102,333,67
3

1,110,431

470,431

470,431

470,431

PROPERTY & ASSETS

LOANS:

INVESTMENT:
Statutory Deposit with Bangladesh Bank- (JBB)

Govt. Islami Biniog Bond

Agents Balances

Sundry Debtors

Cash in Hand
Collection in Hand

4,000,000

125,800,00
0
295,228,75
0
27,500,000

85,700,000
947,209,25
3
3,000,000
205,265,51
4
61,968,349
30,898
149,948,19
4
116,404,86
7
61,554,979
26,582,573
2,930,140
,780
1,603,560,
438
703,280,07
5
547,359,67
9
7,301,668
68,638,920

Amount due from other Persons or bodies


Carrying on Insurance business

470,431

Motor Cycle and Cycle Loan


Stamps in Hand
Printing & Stationary in Hand
Fixed Assets (At Cost Less Depreciation)
TOTAL TAKA

2,985,135

3,159,523

771,436

1,121,046

3,785,077

6,310,647

62,404,564

66,142,963

1,061,028,245

1,640,532,367

3,847,050
2,034,059
7,387,278

3,909,178
7,061,447
6,559,280

81,953,471
2,421,015
,588

94,638,705
3,428,383
,600

4,855,318
6,657,892
3,781,193
119,220,73
3
4,747,339
,568

Life Revenue Account


INCOME

2004
Taka

2005
Taka

Balance of Fund at the Begining of the Year

536,517,036

849,947,437

Premium Less-Reinsurance

758,960,412

1,067,925,820

First year premium- (OL)

168,882,356

220,485,645

First year premium- (LB)

101,291,686

157,202,564

First year premium-(IB)

52,684,878

77,957,082

First year premum- (IKB)

20,178,278

36,065,299

343,037,198

491,710,590

Renewal Premium- (OL)

271,305,940

328,644,882

Renewal Premium- (LB)

110,226,188

181,302

Renewal Premium- (IB)

33,077,628

54,357,672

Renewal Premium-(IKB)

1,274,191

12,076,899

415,883,947

576,381,029

2,193,522

2,814,119

761,114,667

1,070,905,738

2,154,255

2,979,918

31,843,073

56,670,741

2,596,051

5,334,071

2006

2007

Taka

Taka

582,612,3
30
491,532,39
0
273,268,04
2
96,675,673
36,880,222
898,356,3
27
3,517,370
1,484,486
,027
3,646,724
100,620,56
0
2,903,384

648,722,6
59
588,610,63
1
384,830,16
2
156,649,59
6
58,054,244
1,188,144
,633
5,849,964
1,842,717
,256
6,179,379
180,533,72
2
33,499,024

2,942,330,
819
2,308,581
,577
301,320,11
6
266,403,18
1
134,206,70
1
67,046,339
14,136,000
783,112,3
37
655,800,18
9
549,537,49
7
223,467,60
3
94,237,798
1,523,043
,087
6,546,334
2,312,701
,758
4,120,181
270,470,26
3
87,984,892

1,160,739
337,457

50,000
668,195
315,883

566,240
1,935,541

2,885,919
,459
1,585,861,
443

4,064,924
,375
2,051,604,
701

5,611,869
,332
2,669,538,
513

1,300,058,
016
1,480,839
,303
247,603,51
8
185,876,19
5
104,878,45
9
44,254,158

2,013,319,
674
1,836,537
,877
277,118,02
1
202,685,43
2
119,106,57
6
49,812,630

First year premum- (SB)

Group Insurance

Less Re-Insurance Premium


Interest, Rent & Dividend
Profit on Sale of Shares
Provision for Bad & Doubtful Debts Written
Back

18,978

Profit Commission Earned


Other Income

Total
Total revenue

266,970

419,272

1,330,183,542

1,980,316,319

793,666,
506

1,130,368,
882

2008
Taka

EXPENDITURE

2,004

2,005

Claims under Policies (Including Provision for


Claims due or intimated) Less-Reinsurance:

203,090,56
2
9,404,317
178,331,05
0
8,582,325
3,243,566
3,529,304
354,056,61
2

310,238,87
6
22,068,176
249,137,45
0
25,167,463
1,833,305
12,032,482
411,508,21
3
116,660,84
5
294,847,36
8

425,872,13
2
26,060,283
287,798,26
4
74,834,628
2,882,555
34,296,402
514,497,52
0
147,300,19
7
367,197,32
3

127,900,226
8,172,551

68,164,900

119,727,675

1,328,619

2,309,050

58,630

591,868

211,032,246

298,067,875

69,466,860

92,662,676

141,565,386

205,405,199

96,736,845
257,319,76
7

228,489,582

289,330,68
5

350,795,34
9

428,958,95
1

9,000,000
286,880
24,408,159

18,750,000

2,662,894
9,338,000

By Maturity
By Surrenders
Bonus to Policy Holder

(a) Commission to Insurance Agents (Less that


on re-insurance Agents)

Salaries etc.(Other than to Agents and those


included in item (b) above

2,008

9,174,944

By Survival

(b) Allowances and Commission (Other than


Commission included in Sub-item (a) above

2,007

77,339,844

By death

EXPENSES OF MANAGEMENT:

2,006

176,040,355

OTHER EXPENSES:
I.P.O Expenses

3,473,264

Proposed Dividend

3,000,000

7,500,000

Provision for Doubtful Debts

1,092,130

738,128

Provision for Income Tax


Provision for Dividend Distribution Tax

300,000

4,180

1,495

Loss on Sell of assets


Loss on Foreign Exchange
Depreciation
Balance of Fund at the end of the year as
shown in the Balance Sheet
TOTAL TAKA

43,329,432

10,040,101

11,188,310

849,947,437

1,300,058,016

1,330,183,542

1,980,316,319

14,121,032
2,013,319
,674
2,885,919
,459

16,354,584
2,942,330
,819
4,064,924
,375

21,371,710
4,159,089
,587
5,611,869
,332

3. National Life Insurance Co. Ltd.

Balance Sheet
CAP & LIAB
SHAREHOLDER'S CAPITAL
Authorised 2 million shares od Tk. 100 each

issued,subscribed and paid-up


Life insurance fund
Amount due to other persons carrying on ins
business
LIAB & PROVISIONS

2004

2005

2006

TAKA

2008

TAKA

TAKA

200,000,000

200,000,000

2,000,000

200,000,000

200,000,000

45,000,000

51,750,000

64,687,500

77,625,000

93,150,000

3,985,403,6
46

5,401,322,0
98

7,135,013,9
44

9,082,087,46
2

11,404,488,8
24

2,998,569

9,761,787

10,907,342

10,185,932

4,049,907

TAKA

2007

TAKA

outstanding claims whether due or intimated

272,080,264

410,059,415

644,272,315

755,100,397

740,945,487

premium deposits

109,079,916

99,134,778

131,142,010

125,438,232

105,615,594

sundry creditors

437,093,796

480,867,679

563,558,147

639,376,553

786,588,534

15,750,000

20,700,000

25,875,000

---------

---------

proposed div
deferred discount income

TOTAL

72,685,000
834,003,97
6

1,010,761,
872

1,364,847,
472

1,592,600,1
82

1,633,149,6
15

4,868,457,5
29

6,466,832,5
39

8,574,310,7
03

10,763,219,9
86

13,140,974,3
71

TAKA

TAKA

TAKA

TAKA

TAKA

PROPERTY AND ASSETS


LOANS
policy loan

52,400,846

64,856,801

71,897,796

75,047,304

86,702,308

home loan

2,859,431

421,200

421,200

280,000

280,000

other loan

7,536,058

7,222,712

7,009,738

6,133,828

5,311,585

62,796,335

72,500,713

79,328,734

81,461,132

92,293,893

statutory deposit with Bangladesh Bank

2,000,000

2,000,000

2,000,000

2,000,000

2,000,000

share and dibenture

188,181,252

186,752,680

175,547,608

211,301,710

228,470,814

national bank bond

370,000,000

300,000,000

230,000,000

30,000,000

---------

agrani bank shilpa unnayan bond

200,000,000

200,000,000

200,000,000

115,000,000

---------

BD Govt treasury bond

220,000,000

870,000,000

1,460,000,0
00

2,430,000,00
0

2,920,000,00
0

980,181,25
2

1,558,752,
680

2,067,547,
608

2,788,301,7
10

3,150,470,8
14

AGENTS BAL

10,419,784

10,419,784

10,419,784

8,653,951

8,642,025

outstanding premium

1,775,713

3,213,270

1,924,938

769,917

598,984

interest,div accruing but not due

214,621,119

273,772,501

381,691,391

489,762,048

569,241,823

sundry debtors

98,843,271

107,555,222

169,643,066

224,629,902

286,682,640

Deferred premium on BGTB

---------

---------

---------

---------

5,050,000

on fixed deposit with banks

2,177,498,4
08

2,693,555,7
32

3,784,112,5
02

4,837,223,85
4

5,913,069,29
5

on STD and curr acc with banks

622,247,288

1,073,176,7
04

1,286,168,2
17

1,275,957,56
7

1,787,360,99
0

cash in hand

2,425,656

542,198

1,240,613

5,123,963

2,835,796

collection in hand

444,256,610

395,810,278

440,038,790

579,896,071

751,806,717

imprest with org office

31,995,337

28,198,646

6,742,917

14,542,536

17,623,127

forms and stamps in hand

8,374,623

8,557,045

9,047,196

3,001,740

4,930,433

Printing and stationary in hand

---------

---------

---------

4,047,105

5,641,216

INVESTMENT AT COST

CASH, BANK & OTHER BALANCES

3,286,797,
922

4,199,840,
603

5,527,350,
235

6,719,792,8
36

8,483,267,5
74

213,022,133

240,777,766

336,404,947

204,737,830

249,861,289

freehold land

19,577,060

24,939,146

land and Building(NLI tower)

225,533,600

269,926,183

10,763,219,9
86

13,135,924,3
71

OTHER ACCOUNTS
fixed assts(at cost less dep)

4,868,457,5
29

TOTAL

6,466,832,5
39

8,574,310,7
03

Life Revenue Account


2004

2005

2006

2007

2008

TAKA

TAKA

TAKA

TAKA

TAKA

2,861,480,3
84

3,985,403,646

5,401,322,098

7,135,013,94
4

9,082,087,46
2

OL

465,441,370

438,464,634

415,211,434

521,583,389

734,537,937

jana bima

160,115,821

211,021,443

206,431,870

161,355,759

165,110,382

takaful

21,982,028

24,516,117

54,602,627

45,759,944

51,334,648

national pension dep ins

22,292,104

183,807,942

107,962,925

90,367,460

73,849,300

669,831,32
3

857,810,136

784,208,856

819,066,55
2

1,024,832,2
67

OL

1,174,040,4
80

1,391,733,571

1,671,366,734

1,863,613,87
8

2,081,512,09
9

jana bima

252,145,931

372,568,184

508,522,580

569,255,378

612,638,044

takaful

10,291,633

20,039,874

34,506,624

62,801,919

91,212,024

12,140,500

136,137,000

189,677,894

225,357,314

1,436,478,
044

1,796,482,129

2,350,532,938

2,685,349,0
69

3,010,719,4
81

20,701,530

22,881,546

24,016,994

27,136,652

32,557,975

2,043,411

6,296,037

1,086,100

BAL OF FUND BEG OF YEAR


PREMIUM LESS REINSURANCE
First Year Premium

Renewal Premium

national pension dep ins

Group Term Insurance


Premium
Personal Accidental
Premium

Less: Re-Insurance Premium

INTEREST AND DIVIDEND

2,127,010,8
97

2,677,173,811

3,160,802,199

3,537,848,31
0

4,069,195,82
3

6,682,508

7,991,574

9,676,230

3,747,291

9,505,477

2,120,328,
389

2,669,182,237

3,151,125,969

3,534,101,0
19

4,059,690,3
46

293,602,88
5

387,437,081

564,424,305

830,889,18
9

976,689,004

511,920

2,573,847

3,800,043

5,262,939

5,646,398

OTHER INCOME
late fee
discount on BGTB

misc

3,694,848

profit on share investment


profit on sale of motor
vehicle

26,249,521

TOTAL

6,500,000

84,415,000

72,685,000

72,685,000

1,664,342

365,388

314,645

397,704

51,721,810

72,973

928,393

872,242

1,127,583

4,455,176

4,615,340

31,384,682

11,610,431

89,708,014

134,439,57
0

83,417,415

5,306,796,
340

7,053,633,395

9,206,580,386

11,500,004,
152

14,118,466,
812

CLAIM UNDER POLICIES

2004

2005

2006

2007

2008

TAKA

TAKA

TAKA

TAKA

TAKA

By Death

54,619,911

53,011,462

62,345,287

67,535,266

76,739,775

by maturity

16,586,792

34,960,762

64,751,859

274,862,452

530,721,966

by survival

337,279,435

523,939,195

793,858,548

1,001,729,63
5

768,415,340

by surrenders

4,340,102

4,220,159

5,164,587

7,099,769

7,146,406

byothers

1,874,684

1,005,634

1,788,034

3,513,994

2,166,332

414,700,92
4

617,137,212

927,908,315

1,354,741,1
16

1,385,189,8
19

233,500

220,724

156,250

193,374

261,955

175,492,541

184,615,669

192,808,968

205,220,006

203,637,990

374,072,028

461,592,396

492,743,176

490,444,877

584,289,221

549,564,56
9

646,208,065

685,552,144

695,664,88
3

787,927,211

154,135,525

166,592,268

209,228,324

234,323,591

270,849,442

33,728,510

35,914,885

Annuity less Re-Insurance


EXPENSES OF MGT
Commission
to ins agent
allowance and comm (other
than above)

Salaries etc.
casual staff salary

----

----

----

gratuity

7,350,667

7,735,324

20,701,534

9,145,000

14,501,170

travel and conveyance

5,216,474

5,094,370

3,610,235

4,217,635

5,001,190

director

344,000

382,000

448,000

392,000

376,000

auditor

180,000

325,000

210,000

210,000

230,000

medical

2,689,410

2,145,268

1,987,489

2,348,591

4,384,713

training

238,278

133,115

235,203

380,750

180,369

legal

654,589

820,448

333,080

623,487

655,025

ad

3,728,610

3,390,916

3,802,944

3,388,865

5,230,900

actuarial

250,000

479,800

400,000

300,000

800,000

printing

12,953,408

12,888,843

12,096,819

13,171,903

12,979,230

office rent

36,068,133

39,974,299

42,199,416

44,840,350

47,763,302

fuel exp

9,469,035

10,142,933

13,908,609

14,021,444

15,450,086

emp gr ins premium


ins premium for motor
vehicle

5,102,499

4,949,383

5,412,796

5,733,776

6,098,779

930,553

1,207,636

1,240,542

1,691,300

2,004,892

reg renewal

2,322,875

6,911,001

7,444,539

9,370,108

11,062,808

policy stamp

9,100,241

9,851,238

8,749,692

9,421,695

12,091,735

meeting exp

767,568

1,109,344

1,049,694

1,209,133

2,580,646

AGM

431,825

780,812

536,252

777,865

1,380,714

tel fax

3,522,328

3,536,256

3,841,835

3,874,987

3,817,469

gas water

4,310,055

4,624,562

4,395,267

4,704,265

5,479,651

postage and courier

3,017,191

2,542,794

2,809,751

3,240,788

3,704,008

forms

1,885,002

2,020,922

2,120,497

2,421,057

3,144,253

rates and taxes

745,346

766,298

743,069

980,309

726,187

freight

224,936

291,126

232,682

332,506

1,388,409

bank

2,722,401

3,341,399

4,233,609

5,496,369

4,403,521

cleaning and washing

1,121,871

1,214,809

1,189,892

1,180,810

1,290,990

newspaper

473,973

445,944

394,965

367,214

380,308

canteen

1,687,695

1,650,021

1,731,090

1,798,560

1,852,417

subsription

569,288

515,391

678,404

2,528,833

447,100

entertainment

628,820

489,653

545,679

672,291

699,136

business promotion

18,770,172

14,051,688

14,676,825

18,150,205

22,495,122

medical exp

1,845,645

1,820,151

2,286,778

2,386,768

2,418,247

repairs

8,344,704

8,907,720

7,815,856

9,301,500

9,693,027

contrbution to emp PF

5,610,126

6,320,663

8,586,960

8,863,168

9,620,946

856,977,81
2

973,661,460

1,075,430,471

1,151,260,5
16

1,309,023,8
88

inc tax

11,030,447

16,070,365

16,812,865

20,713,347

51,067,852

dep on fixed asset

22,700,011

24,643,146

25,383,541

25,447,907

20,801,889

33,730,458

40,713,511

42,196,406

46,161,254

71,869,741

Proposed dividend

9,000,000

7,762,500

12,937,500

----

15,525,000

proposed bonus shares

6,750,000

12,937,500

12,937,500

----

15,525,000

15,750,000

20,700,000

25,875,000

----

31,050,000

Bal of fund at the end of the


year as in BS

3,985,403,6
46

5,401,322,098

7,135,013,944

9,082,087,46
2

11,404,488,8
24

TOTAL

5,306,796,
340

7,053,755,005

9,206,580,386

11,634,443,
722

14,201,884,
227

OTHER EXPENSES

4. Popular Life Insurance Co. Ltd.

Balance Sheet
2004

PARTICULAR
TAKA

2005
TAKA

2006
TAKA

2007
TAKA

2008
TAKA

CAPITAL AND LIABILITIES


SHAREHOLDERS' CAPITAL
Authorised

100,000,000

250,000,000

250,000,000

250,000,000

250,000,000

30,000,000

75,000,000

75,000,000

75,000,000

90,000,000

288,636,696

862,325,270

1,931,971,038

3,648,376,343

6,080,898,581

4,535,000

10,714,000

12,799,372

9,918,160

2,868,177

1,822,184

2,409,909

1,961,297

3,250,478

2,500,000 Ordinary Shares ofTk.100 Each


Issued, Subscribed and Paid-up
750.000 Ordinary Shard of Tk.100 Each
fully paid up in cash
Life Insurance Fund
Estimated Liabilities in Respect ofOutstanding
Claims. Whether Due or Intimated
Amount due to other Persons or Bodies
Carrying on Insurance Business

1,923,339
8,185,268

3,063,64
5

Sundry Creditors

80,813,794

90,878,541

69,904,818

47,497,687

100,398,923

Premium Deposits

5,611,152

3,239,140

4,724,817

7,294,544

23,374,870

2,096,968,678

3,805,048,031

Loans and Advances

Proposed Dividend
Total

419,705,249

7,500,00
0

1,054,542,780

158,724

15,000,000

101,068,
553

117,217,
510

89,997,6
40

261,960

549,356

618,023

18,348,626

97,743,795

Statutory Deposit with Bangladesh Bank (NIB)

4,000,000

Jativa Biniog Bond (.IBB)

8,550,000

Total liabilities

81,671,6
88

6,300,791,029

129,892,4
48

PROPERTY AND ASSETS

LOAN
On Insurer's Policies within their Surrender Value
INVES'TMENT (AT COST)

5,798,626

Outstanding Premium

2,250,522

211,883,795

1816541
004

4,000,000

4,000,000

4,000,000

4,000,000

66,450,000

179,200,000

918,300,000

1,500,400,000

40,201,999

151,313,110

Membership of DSE nd CSE


Shares & Debentures

1,512,534

9923005
75

27,293,795

28,683,795

6,248,596

11,981,870

2979857
6

160,827,894
32,707,198

Interest, Dividend and Rents Accruing But not Due

19,352,557

45,601,193

89,875,297

228,360,369

507,575,483

Advance and Deposits

11,998,854

26,657,519

36,572,101

58,886,602

92,702,663

767,123

2,922,432

14,760,158

22,644,585

39,710,831

Sundry Debtors
Hire Purchase Loan
CASH AND BANK BALANCES
On Fixed Deposit with Banks
On STD Account with Banks
On Current Account with Banks
Cash in Iland

5,136,255

321,373,751

782,057,589

1,588,639,895

57,774,592

415,322,802

1,137,384,548

66,008,703

94,213,380

2029126
797
1487373
135
1171843
97

10,172,512

30,858,424

38,090,849

35,634,423

95,821,910

3,125,716

11,560,973

4,284,845

3,673,376

5,070,882

20,216,5
57

3,290,685,144
2,563,024,106
152,136,545

130,084,374

258,306,687

299,552,
034

OTHER ACCOUNTS

47,602,378

92,762,300

142,637,539

1023235
1
3750291
15
4722165
69

Fixed Assets (at Cost Less Depreciation)

45,754,943

87,505,830

130,380,346

458,551,389

492,237,170

Stamps, Printing and Stationery in Hand

1,847,435

5,256,470

12,257,193

13,665,180

21,244,759

419,705,249

1,054,542,780

2,096,968,678

3,805,048,031

6,300,791,029

Branch Petty Cash

15,114,239

Collection in I-land

Total

5,108,422
469,523,279
513,481,929

Life Revenue Account


2004

2005

2006

2007

2008

862,325,270

1,931,971,03
8

3,648,376,34
3

4,056,163

7,382,613

1,384,612,194

1,348,877,1
11

1,529,575,2
21

866,709,314

1,670,553,0
08

2,402,818,4
41

106,661,9
25

288,636,696

417,400

1,199,060

First Year Premium

375,271,2
59

1,033,591,6
79

Renewal Premium

125,086,5
14

332,373,54
4

500,357,7
73

1,365,965,2
23

2,251,321,5
08

3,019,430,1
19

3,932,393,6
62

296,017

890,950

772,922

1,461,128

4,931,109

500,061,7
56

1,365,074,2
73

2,250,548,5
86

3,017,968,9
91

3,927,462,5
53

INTEREST AND DIVIDEND

13,935,39
7

36,064,120

208,855,73
7

349,364,90
9

OTHER INCOME

4,649,742

766,226

2,807,624

50,465,041

Total Revenue

518,646,8
95

1,401,904,61
9

2,353,533,60
5

3,229,632,35
2

4,327,292,50
3

TOTAL

625,726,2
20

1,691,740,3
75

3,217,457,2
40

5,165,659,5
53

7,983,051,4
59

2004

2005

2006

2007

2008

TAKA

TAKA

TAKA

TAKA

TAKA

BAL OF FUND BEG OF YEAR


Excess Provision Deth Claim
Written Back

1,598,365

PREMIUM LESS RE-INSURANCE

Less: Re-Insurance Premium

CLAIM UNDER POLICIES

99,319,962
3,665,057

By Death

5,503,000

13,372,238

19,877,109

39,941,661

48,529,744

by survival

4,084,630

8,184,656

14,755,398

36,407,281

75,095,075

by surrenders

2,124

54,050

288,254

623,452

15,348

38,925

76,652,544

124,287,19
6

322,640

by annuity
9,589,754
Annuity less Re-Insurance
EXPENSES OF MGT
Commission

21,610,944

34,955,147

217,304,2
29

575,390,78
0

912,105,76
0

999,207,50
8

1,258,439,3
45

108,395,5
41

220,545,34
9

338,425,29
5

417,423,15
8

499,750,94
0

Commission

4,368,032

Proposed Div

1,500,000

7,500,000

9,000,000

Divident Distribution Tax

300,000

Corporate Tax

19,675,397

Bonus Shares

15,000,000

Salries Etc
OTHER EXPENSES

Written Off Intangible Assets

Total Expense

337,089,5
24

829,415,10
5

1,285,486,2
02

1,517,283,2
10

1,902,152,8
78

Bal of fund at the end of the year


as in BS

288,636,6
96

862,325,270

1,931,971,03
8

3,648,376,34
3

6,080,898,58
1

TOTAL

625,726,2
20

1,691,740,3
75

3,217,457,2
40

5,165,659,5
53

7,983,051,4
59

5. Pragati Life Insurance Ltd.

Balance Sheet
CAPITAL & LIABILITIES

2004
TAKA

2006

2005

TAKA

TAKA

2007
TAKA

2008
TAKA

SHARE HOLDERS' CAPITAL:


AUTHORIZED
250,000,000

250,000,000

250,000,000

250,000,000

250,000,000

fully paid up in cash

30,000,000

75,000,000

75,000,000

75,000,000

75,000,000

Life Insurance Fund

176,505,320

290,392,137

536,141,221

794,664,430

1,058,860,529

7,693,150

28,915,790

19,290,542

13,472,254

19,821,826

298,096

504,878

3,832,603

5,548,473

13,092,748

Sundry Creditors

38,079,397

1,750,813,473

109,307,441

67,118,054

53,636,811

Premium Deposits

3,939,884

3,389,847

5,505,567

3,547,242

2,903,008

2,500,000 Ordinary Shares of Tk. 100 each


ISSUED, SUBSCRIBED & PAID-UP
750,000 Ordinary Shares of Tk. 100 each

LIABILITIES AND PROVISIONS


Estimated Liabilities in Respect of Outstanding
Claims, Whether Due or Intimated
Amount due to Other Persons or Bodies
Carrying on Insurance Business

256,515,847

2,149,016,125

749,077,374

959,350,453

30,248,198
1,253,563,12
0

50,010,527

1,783,623,988

137,936,153

89,686,023

119,702,591

2,004

2,005

2,006

2,007

2,008

Provision for Share Value Fluctuation A/C

Total liabilities
PROPERTY & ASSETS

TAKA

TAKA

TAKA

TAKA

TAKA

LOANS
On Insurers' Policies within their surrender
value

626,411

1,595,210

2,354,234

2,514,916

2,977,506

Statutory Deposit with Bangladesh Bank (NIB)

4,000,000

4,000,000

4,000,000

4,000,000

4,000,000

Bangladesh Govt. Treasury Bond (BGTB)

5,000,000

38,000,000

67,500,000

137,500,000

192,500,000

Shares

1,306,500

5,020,769

13,931,300

86,387,665

340,397,436

413,774

284,691

247,497

213,273

153,992

Outstanding Premium
Interest, Dividends and Rents Accruing but not
Due

54,467,000

64,216,858

138,851,010

190,619,281

167,359,728

7,500,800

9,686,347

23,291,519

25,067,949

27,204,980

Advances, Deposits and Sundry Debtors

14,700,391

19,310,779

23,938,882

92,322,379

41,736,139

54,000,000

66,000,000

162,510,000

117,010,000

177,546,395

76,192,632

115,072,963

INVESTMENT (AT COST)

Agents' Balances

CASH, BANK & OTHER BALANCES


On Fixed Deposit with Banks (FDRs)
On Short Term Deposit with Banks

29,062,878

1,783,353,280

60,516,409

On Current Account with Banks

21,942,598

34,714,745

42,164,455

73,613,538

85,148,683

1,799,719

2,102,406

3,111,429

3,006,718

11,630,782

46,871,037

98,964,100

177,263,193

104,063,875

16,759,446

153,676,232

1,985,134,531

445,565,486

373,886,763

406,158,269

1,139,902

2,022,122

2,943,955

4,991,118

6,329,538

13,684,837

19,744,818

26,453,491

41,847,109

256,515,847

2,149,016,125

749,077,374

959,350,453

64,745,532
1,253,563,12
0

Cash in Hand
Collection in Hand

Stamps, Printing & Stationery in Hand


Fixed Assets (At Cost Less Depreciation)

Life Revenue Account


INCOME

2004
TAKA

2005

2006

TAKA

TAKA

2007

TAKA

2008

TAKA

101,818,896

176,505,320

290,392,137

536,141,221

794,664,430

First Year Premium-IPL

49,136,223

86,189,653

127,219,653

85,102,540

141,062,355

First Year Premium-PB

36,724,379

59,056,834

84,978,302

44,985,760

69,684,012

First Year Premium-IJB (Takaful)

546,142

2,040,354

20,895,988

26,202,899

37,801,608

First Year Premium-PIBD

183,235

6,064,753

16,030,205

14,722,313

28,667,116

4,869,900

12,128,800

29,994,527

45,305,500

86,589,979

158,221,494

261,252,948

201,008,039

322,520,591

Renewal Premium-IPL

62,028,216

80,152,823

140,010,908

150,121,270

134,900,000

Renewal Premium-PB

38,277,073

54,746,594

75,013,410

93,691,848

125,694,160

Balance of Life Fund at the beginning of the year


PREMIUM LESS-REINSURANCE:

First Year Premium-IDPS

Islami Jibon Bima -Takaful, Renewal

614,894

8,201,390

7,787,198

2,881,064

10,113,710

15,696,301

245,463

4,001,101

6,762,934

19,728,700

100,305,289

135,144,880

222,521,377

268,891,152

303,806,359

Group Insurance Premium-Life

32,228,755

32,968,605

44,349,980

61,049,584

59,883,684

Group Insurance Premium-Health

16,555,965

22,201,759

30,702,284

37,410,698

50,257,824

48,784,720

55,170,364

75,052,264

98,460,282

110,141,508

235,679,988

348,536,738

558,826,589

568,359,473

736,468,458

Islami Deposit Pension Scheme, Renewal


Renewal Premium-PIBD

Gross Premium
Less: Re-Insurance Premium
Net Premium
Interest, Dividends and Rents

3,882,089

2,846,191

6,141,564

4,583,410

10,824,183

231,797,899

345,690,547

552,685,025

563,776,063

725,644,275

8,117,473

24,130,266

36,207,470

113,534,310

166,970,893

1,139,288

619,405

547,465,421

2005

Other Income

112,845

Total revenue

240,028,
217

370,960,
101

2004

341,847,113

EXPENDITURE
TAKA

879,904,037

853,747
1,214,305,34
1

3,571,230
1,690,850,82
8

589,511,
900

678,164,
120

896,186,3
98

2006

2007

2008

TAKA

TAKA

TAKA

TAKA

CLAIMS UNDER POLICIES (INCLUDING


PROVISION FOR CLAIMS DUE OR
INTIMATED), LESS RE-INSURANCE:
24,338,628

32,257,339

25,434,411

30,471,164

30,170,771

By Maturity

167,251

1,397,582

1,732,479

6,745,890

12,369,928

By Disability

232,916

By Surrender

428,871

362,284

1,018,748

713,029

1,351,087

5,339,186

24,203,950

17,356,391

27,592,180

43,116,492

80,317

42,952

26,466

12,795

104,003

By Death

By Survival Benefit
By Survival Profit
By Hospitalization

Profit Commission

12,000

82,818

11,726,486

18,214,258

28,799,988

34,132,743

45,324,520

42,313,655

76,478,365

74,380,483

99,667,801

132,519,619

3,100,287

637,676

2,298,936

381,228

45,413,942

77,116,041

74,380,483

101,966,737

132,900,847

34,748,002

57,794,337

102,452,895

86,757,306

148,120,263

EXPENSES OF MANAGEMENT:
a) Commissions to Insurance Agents
(Less that on Re-Insurance)
b) Allowances and Commission (Other than
Commission Including in sub-item (a) Preceding)

Salaries etc.

31,686,408

48,075,803

72,249,240

89,038,063

146,753,076

66,434,410

105,870,140

174,702,135

175,795,369

294,873,339

24,310,987

30,871,849

48,238,321

62,647,116

76,068,257

1,271,672

1,251,514

1,496,649

2,307,870

3,333,276

Directors' Fees

290,950

260,100

182,850

310,500

593,400

Auditors' Fees

115000

55,000

90,000

100,000

125,000

Medical Fees

134,935

452,468

843,274

624,571

565,376

Legal & Professional Fees

272,495

253,460

203,735

395,810

797,895

Insurance Policy Stamp

829,854

1,474,580

2,008,841

3,172,510

4,023,670

Advertisement and Publicity

1,691,868

1,857,369

2,521,733

12,547,346

7,172,350

Printing and Stationery

1,105,934

1,957,503

3,385,356

2,832,822

5,304,737

Office Rent

Travelling and Conveyance

8,085,842

10,115,439

11,747,338

14,849,172

19,865,813

Bank Charges

615,544

745,563

1,105,228

2,038,401

3,096,859

Repairs and Maintenance

577,997

1,023,562

1,663,719

971,962

1,786,433

2,572,421

3,390,169

4,156,756

6,460,947

10,798,569

Group Insurance Premium

199,771

235,698

535,844

610,949

729,316

Hospitalization Insurance Premium

120,740

173,368

227,996

290,822

402,614

Papers & Periodicals

230,791

130,848

162,167

237,957

277,635

Telephone, Fax and Internet etc.

958,537

1,203,248

1,685,534

2,311,411

3,359,575

Electricity & Utility Expenses

987,942

1,086,625

1,145,307

1,481,432

1,612,274

Training and Recruitment Expenses

325,772

678,821

445,379

406,635

315,118

Car, Fuel, Maintenance and Repairs

Uniform & Liveries

11950
478,712

610,163

894,915

1,412,282

2,223,685

6,946

10,554

11,420

111,165

129,547

Postage and Courier

453,851

487,268

644,302

740,880

1,047,625

Business Development Expenses

124,892

188,597

311,814

593,325

1,771,056

Company Registration Fees

655,718

824,880

1,219,879

1,955,894

1,989,258

89,007

110904

123,064

225,045

415,584

241,843

746,024

227,983

401,273

640,240

1,093,079

1,229,546

2,377,063

2,432,518

1,822,913

845,223

1,017,228

1,621,387

643,816

847,839

1,262,023

132,751

37,034

42,105

5,401,941

8,506,089

13,274,325

Entertainment
General Insurance Premium

Stamps & Forms


Fees, Subscriptions and Donation
Conference
AGM Expenses
Lease Rental
Meeting, Seminar & Symposium

43,584

57,732

2,196,648

291,681

320,872

184,413

IPO Expenses

8,378,646

Staff Welfare Expenses


Preliminary Expenses (Written off)
Pre-operative Expenses (Written off)
Depreciation on Fixed Assets

49,679
665,873
2,361,735

3,749,511

9,000,000

Divident
Transfer to Share Value Fluctuation A/C

7,500,000
30,248,198

53,493,441

74,087,103

94,680,198

141,878,805

204,216,113

119,927,851

179,957,243

269,382,333

317,674,174

499,089,452

176,505,320

290,392,137

536,141,221

341,847,113

547,465,421

879,904,037

794,664,430
1,214,305,34
1

1,058,860,52
9
1,690,850,82
8

Balance of the fund at the end of the


year as shown in the Balance Sheet

6. Prime Islami Life Insurance Ltd.

Balance Sheet
CAPITAL AND LIABILITIES
SHAREHOLDERS' CAPITAL

2004

Authorised
25,00,000 Ordinary Shares of Tk. 100
each
Issued, Subscribed and Paid-up

30,000,000

Life Insurance Fund


Estimated liabilities in respect of
outstanding
claims, whether due or intimated
Amount due to other persons carrying on
insurance business
Sundry Creditors

2005

2006

2007

2008

100,000,00
0

100,000,000

100,000,00
0

250,000,000
90,000,000
1,388,236,11
0

92,662,097

30,000,000
212,269,12
7

30,000,000
438,643,407

75,000,000
848,122,08
0

240,654

952,931

659,144

1,149,935

1,030,687

833,332

1,711,554

2,098,129

2,046,724

10,305,517

16,918,865

26,820,330

26,894,426

40,186,664

Welfare Fund
Provision for Share Value Fluctuation
Account

694,014

1,728,573

747,663

738,483

10,261,550

Share Application Money

0
1,417,272,97
9

Premium Deposits

2,860,568

10,111,723

6,626,133

7,230,404

8,663,214

Proposed Dividend

0
136,858,8
69
14,196,772

0
271,067,7
15
28,798,588

0
1,923,755,9
07
1,455,112,50

15,000,000
975,751,8
46
52,629,766

27,000,000
1,568,282,6
80
90,046,570

Total
Total liabilities

0
2004

2005

2006

2007

2008

1,744,320

673,147

1,673,772

3,522,942

4,000,000

4,000,000

4,000,000

4,000,000

12,500,000

42,000,000

67,500,000

4,000,000
120,000,00
0

205,500,000

4,211,409

35,015,820

234,841,753

1,000,000

1,000,000
160,015,8
20

1,000,000

PROPERTY AND ASSETS


LOANS and Investments
On Insurer's Policies within their surrender
value
INVESTMENT (AT COST)
Statutory Deposit with Bangladesh Bank
(BGIIB)
Bangladesh Govt. Islami Investment Bond
(BGIIB)
Shares
Central Depository Bangladesh Ltd.

Agents' Balance

16,500,00
0

46,000,00
0

76,711,409

1,163,401

2,160,222

2,325,388

445,341,753

Outstanding Premium
Profit, Dividends and Rents Accruing But
Not Due

30,104,019

2,523,521

18,048,361

Advances and Deposits

5,681,331

7,497,411
13,397,00
2

16,026,671

2,660,904
54,893,64
5
31,863,75
6
21,400,83
2

691,857

2,762,625

33,674,571

50,000,000

108,112,00
0

256,701,973

542,534,39
3

704,365,643

18,876,122

1,462,764,32
5

53,136,665

75,693,932

Sundry Debtors

920,266
73,661,492
48,988,312
35,809,243

CASH AND BANK BALANCES


On Fixed Deposit with Bank
Welfare Funds

616,333

Cash at Banks

8,960,377

Cash in Hand

181,164

77,675

52,683

147,515

154,076

33,597,253
93,355,12
7

50,419,570
177,485,3
67

27,265,752
1,746,784,7
33

65,640,156
661,458,7
29

102,058,687
882,272,338

Fixed Assets (At Cost Less Depreciation)

17,378,977

22,420,291

29,264,591

35,577,475

40,301,384

Stamps, Printing and Stationery in hand

256,512
136,858,8
69

363,102
271,067,7
15

3,125,731
1,923,755,9
07

3,444,288
975,751,8
46

3,790,379
1,568,282,6
80

Collection in Hand

OTHER ACCOUNTS

Total

Life Revenue Account


2004

2005

2006

2007

2008

28,317,28
6

92,662,09
7

212,269,1
27

438,643,40
7

848,122,080

-616,333

-845,480

681,681

-409,418

114,091,5
20
67,865,22
0

210,917,4
39
131,621,8
80

322,174,7
25
240,475,9
60

373,225,42
5
440,874,24
1

895,147
182,851,
887

495,744
343,035,
063

2,316,405
816,416,0
71

1,905,288
1,011,296,
050

Net Premium

-460,864
182,391,
023

-129,351
342,905,
712

-1,090,771
815,325,3
00

-1,086,300
1,010,209,
750

PROFIT, DIVIDENDS AND RENTS

3,518,046

9,549,966

1,000,881
563,651,
566
1,322,778
562,328,
788
32,465,43
1

75,498,873

160,883,618

Amount in Taka
BALANCE OF FUND AT THE BEGINNING
OF THE YEAR
ADJUSTMENTS MADE DURING THE YEAR
PREMIUM LESS REINSURANCE
First Year Premium
Renewal Premium
Group Insurance Premium
Gross Premium
Re-insurance Premium

403,214,748
606,176,014

OTHER INCOME
Total Revenue
Total
CLAIMS UNDER POLICIES (INCLUDING
PROVISION FOR
CLAIMS DUE OR INTIMATED ), LESS REINSURANCE
By Death

103,169
186,012,
238
214,329,5
24

161,253
352,616,
931
444,662,6
95

319,440
595,113,
659
806,537,3
06

2,021,906
892,846,0
79
1,332,171,1
67

509,115
1,171,602,
483
2,019,315,1
45

2004

2005

2006

2007

2008

568,022

2,099,434

3,644,887

3,268,181

6,107,069
1,000,000

2,274,804

0
25,181,54
7

12,738,77
3

61,149,678

100,303,178

60,000

14,554

120,000

12,000

119,927

421,000

1,885,839

2,488,326

5,244
29,267,23
2

2,842,826

47,653
15,065,78
7

66,423,698

109,910,573

17,946,22
0

38,342,15
0

60,483,35
1

65,475,362

83,749,871

22,795,37
5
40,741,5
95
73,053,18
0
113,794,
775

39,154,36
5
77,496,5
15
132,650,9
48
210,147,
463

170,506,6
81
230,990,
032
93,962,16
7
324,952,
199

191,703,88
3
257,179,2
45
131,184,92
0
388,364,1
65
1,502,172

7,180,318

3,472,225
10,202,24
3

12,759,052

15,775,790

10,261,550

By Maturity
By Survival
By Others
By Surrenders
Profit Commission

EXPENSES OF MANAGEMENT
Commission :
(a) Commission to Insurance Agents
(Less that on re-insurance )
(b) Allowances and Commission (other
than
commission included in sub-item
(a)preceding)

Other Management Expenses

IPO Expenses
Depreciation on Fixed Assets
Transfer of Share Value Fluctuation
Account

5,029,826

Proposed Dividend
Bonus Share
Total Expense
BALANCE OF THE FUND AT THE END OF
THE YEAR
AS SHOWN IN THE BALANCE SHEET
Total

208,888,645
292,638,51
6
175,492,606
468,131,12
2

121,667,
427

232,393,
568

0
367,893,
899

15,000,000
484,049,0
87

27,000,000
631,079,03
5

92,662,09
7
214,329,
524

212,269,1
27
444,662,
695

438,643,4
07
806,537,
306

848,122,08
0
1,332,171,
167

1,388,236,1
10
2,019,315,
145

7. Progressive Life Insurance Co. Ltd.

Balance Sheet
CAP & LIAB
SHAREHOLDER'S CAPITAL
Authorised 2,000,000 Ordinary
shares of Tk 100 each

2004

2005

TAKA

TAKA

200,000,000

200,000,000

2006
TAKA
200,000,000

2007
TAKA
200,000,00
0

2008
TAKA
200,000,0
00

issued,subscribed and paid-up

30,000,000

75,000,000

75,000,000

75,000,000

75,000,00
0

Life insurance fund


Amount due to other persons
carrying on ins business

73,476,293

159,332,888

273,872,758

492,672,42
5

868,259,9
99

405,755

769,921

265,458

799,193

19,984,840

21,745,35
8

605,878

724,724

20,937,343

26,262,108

23,802,65
6

---------

---------

125,108

LIAB & PROVISIONS


outstanding claims whether due or
intimated
premium deposits
sundry creditors
Loan From Sponsors/Directors

8,146,090

13,081,060

24,358,545

447,539

263,317

1,363,745

10,678,501

71,230,672

5,763,000

Lease finance
Financial expenses payable (Lease
interest)

10,612,706
2,879,602

proposed div
Other deposits

TOTAL

2,009,509

2,878,326

3,687,264

2081183

3649759

40,536,947

87,453,375

50,346,897

48,934,00
9

49,922,4
97

144,138,348

322,192,018

399,989,576

616,871,89
2

993,981,6
89

TAKA

TAKA

PROPERTY AND ASSETS


LOANS
On Insurance Policies within their
surrender value

TAKA

TAKA

TAKA

1,199,208

3,089,902

4,348,189

6,594,362

10,674,7
04

statutory deposit with Bangladesh


Bank/National Inv Bond

17,000,000

33,500,000

51,500,000

102,524,02
3

225,844,3
35

share and dibenture

6,924,166

23,214,68
2

Inv in Equity Share of CDBL

1,000,000

1,000,000

1,000,000

1,000,000

agrani bank shilpa unnayan bond

---------

BD Govt treasury bond

17,000,000

34,500,000

52,500,000

110,448,1
89

250,059,
017

1,706,575

678,921

664,180

1,550,446

7,632,345

4,171,508

6,078,508

9,790,60
3

21,654,190

38,428,275

83,250,737

108,844,25

129,872,8

INVESTMENT AT COST

Amounts due from other


persons carrying on Insurance
business
AGENTS BAL
outstanding premium

41

interest,div accruing but not


due

2,364,471

5,800,161

16,014,172

32,492,053

55,345,27
2

sundry debtors

437,125

437,125

437,125

437,125

437,125

Intangible Assets
CASH, BANK & OTHER
BALANCES

8,904,055

7,123,244

5,342,433

4,006,825

Advance & deposits

7,271,037

10437881

10731192

15575449

23,480,63
3

on fixed deposit with banks

15,000,000

27,279,970

114,630,000

164,630,00
0

234,061,2
50

on STD and curr acc with banks

31,753,666

156,682,110

64,398,333

111,739,05
7

187,424,0
06

cash in hand

2,921,356

3,071,327

2,984,262

2,444,347

5,293,157

Cash in Transit
forms and stamps and stationary
in hand

16,724,526

11,783,248

11,089,485

19,190,708

31,394,88
2

1,317,131

1,485,813

3,167,192

5,946,803

7,634,127

74,987,716

210,740,349

207,000,464

319,526,3
64

489,288,
055

23,238,616

11,980,885

24,479,957

27,108,606

44,507,24
7

616,871,89
2

993,981,6
89

OTHER ACCOUNTS
fixed assts(at cost less dep)
freehold land

TOTAL

144,138,347

322,192,018

399,989,576

Life Revenue Account


2004

2005

2006

2007

2008

TAKA

TAKA

TAKA

TAKA

TAKA

BAL OF FUND BEG OF YEAR

27,955,4
77

73,476,2
93

159,332,
888

273,872,
758

492,672,42
5

Previous Years Adjustment

(1,328,28
7)

(1,755,66
1)

(1,354,31
8)

(1,605,08
1)

(2,000,000)

ILP

101,816,
187

149,211,
686

190,653,
070

204,883,
807

311,069,63
6

SB

20,887,2
09

31,782,2
75

40,573,6
21

41,343,6
54

42,179,077

1,147,44
2

1,046,39
8

PREMIUM LESS RE-INSURANCE


First Year Premium

PDPS
Islami Bima

1,648,45
0

3,756,97
5

5,140,395

123,850,
838

182,040,
359

232,875,
141

249,984,
436

358,389,1
08

ILP

63,730,2
78

125,745,
150

191,058,
227

275,055,
289

396,503,19
5

SB

16,847,6
35

26,617,2
45

43,701,8
97

57,531,9
34

73,248,845

PDPS

285,730

1,122,70
5

2,184,09
0

Islami Bima

2,466,052

80,863,6
43

153,485,
100

236,944,
214

332,587,
223

472,218,0
92

3,430,24
9

4,886,36
2

5,795,01
7

3,063,094

208,135,
427

338,955,
708

474,705,
717

588,366,
676

833,670,2
94

172,467

503,550

722,538

315,591

753,638

207,962,
960

338,452,
158

473,983,
179

588,051,
085

832,916,6
56

INTEREST AND DIVIDEND

2,233,32
6

14,454,5
25

17,716,6
55

30,979,9
52

74,504,23
2

OTHER INCOME

398,930

835,133

1,334,92
9

472,038

647,234

Total Revenue

210,595,
216

353,741,
816

493,034,
763

619,503,
075

908,068,12
2

TOTAL

237,222,
406

425,462,
448

651,013,
333

891,770,
752

1,398,740
,547

2004

2005

2006

2007

2008

TAKA

TAKA

TAKA

TAKA

TAKA

Renewal Premium

Group & Health Insurance


Premium

Less: Re-Insurance Premium

3,420,94
6

CLAIM UNDER POLICIES

By Death

3,451,15
0

5,237,61
0

7,296,44
6

9,419,14
3

7,180,618

by maturity

282,000

1,361,00
5

1,285,39
4

1,408,962

by survival

8,964,10
8

26,126,2
50

56,318,5
00

75,084,2
57

79,136,161

Profit Commission

626,823

1,051,00
2

by surrenders

333,955

369,477

763,042

838,626

1,818,273

by Hospitalization

96,421

126,194

121,881

158,381

523,447

13,472,4
57

32,141,5
31

66,911,8
76

86,785,8
01

90,067,46
1

144,463,
565

223,637,
989

295,568,
746

295,904,
634

422,097,1
42

Lease Rent Expense

7,075,40
0

6,875,60
0

5,709,87
0

4,148,860

Pre-operation Expenses Amortised

77,106

dep on fixed asset

5,704,34
1

3,274,64
0

6,003,54
2

8,917,21
1

12,831,477

Written Off Intangible Assets

28,644

1,780,81
1

1,780,81
1

1,335,608

Total Expense

163,746,
113

266,129,
560

377,140,
575

399,098,
327

530,480,5
48

Bal of fund at the end of the year as


in BS

73,476,2
93

159,332,
888

273,872,
758

492,672,
425

868,259,99
9

TOTAL

237,222,
406

425,462,
448

651,013,
333

891,770,
752

1,398,740
,547

Net Income

46,849,1
03

87,612,2
56

115,894,
188

220,404,
748

377,587,57
4

Annuity less Re-Insurance


EXPENSES OF MGT
OTHER EXPENSES

8. Rupali Life Insurance Company Limited

Balance Sheet
CAP & LIAB
SHAREHOLDER'S CAPITAL

issued,subscribed and paid-up


Life insurance fund
Amount due to other persons
carrying on ins business
LIAB & PROVISIONS
outstanding claims whether due
or intimated
premium deposits
sundry creditors
Provision for diminution in the
value of shares
Provision for doubtful accounts

2004

2005

2007

2008

TAKA

TAKA

TAKA

TAKA

TAKA

30,000,00
0

30,000,00
0

30,000,00
0

30,000,00
0

30,000,000

178,949,0
15

279,224,9
38

460,708,6
92

744,915,6
22

829,014,49
4

228,440

67,253

(10,992)

(10,992)

2,765,715

2,000,071

1,622,267

1,825,850

2,521,982

1,808,933
26,051,69
6

440,697
24,344,66
9

106,978

9,440,093

8,909,712

11,935,277

1,500,000

1,500,000

6,345,895

9,502,681

1,465,617

1,465,617

33,131,3
32

20,672,0
19

13,701,17
9

17,422,87
6

326,125

30,626,3
44
TOTAL

2006

239,901,4
84

342,584,7
10

511,447,9
64

788,605,8
09

876,426,37
8

TAKA

TAKA

TAKA

TAKA

TAKA

PROPERTY AND ASSETS


LOANS
On Insurance Policies within their
surrender value

380,929

1,299,84
4

2,295,44
2

3,615,069

4,382,330

INVESTMENT AT COST
statutory deposit with
Bangladesh Bank/National Inv
Bond

4,000,000

4,000,000

4,000,000

4,000,000

4,000,000

NIB

12,900,00
0

38,400,00
0

55,400,00
0

123,900,0
00

112,900,00
0

Treasury Bond

15,000,00
0

65,000,000

Inv in shares of companies

40,000

1,040,000

1,040,000

19,575,54
6

25352387

Project loan

2,751,691

2,739,091

2,722,741

19,691,6
91

46,179,0
91

63,162,7
41

162,475,5
46

207,252,3
87

AGENTS BAL

5,464,75
1

5,464,75
1

5,464,75
1

interest,div accruing but not


due

7,717,68
1

13,610,0
46

26,582,33
4

50,419,49
6

69,005,452

sundry debtors

2,236,99
8

3,618,43
7

2,902,010

1,465,617

1,465,617

Advance & deposits

11,296,54
8

17169493

24614054

on fixed deposit with banks

72,560,00
0

103,910,0
00

165,150,0
00

198,531,3
68

257,031,36
8

on STD with banks

25,657,12
6

49,348,98
6

64,943,87
9

167,811,5
00

122,734,06
2

on curr acc with banks

9,707,440

10,033,33
8

31,672,93
3

30,501,86
5

34,212,895

cash in hand

2,623,670

10,376,53
5

8,366,686

29,915,99
3

21,620,929

55,441,62
8

42,101,72
6

56,332,99
7

31,392,26
8

21,142,435

1,587,125

2,316,590

3,517,388

3,680,468

4,767,422

178,873,
537

235,256,
668

354,597,
937

489,681,3
18

506,807,5
87

CASH, BANK & OTHER


BALANCES

Collection in hand
forms and stamps and stationary
in hand

OTHER ACCOUNTS

27847856

45,298,476

fixed assts(at cost less dep)

23,436,74
7

33,867,68
9

52,704,22
9

78,116,77
4

85,148,332

Deferred Expenses

2,099,150

3,288,184

3,738,520

2,831,989

2,364,673

TOTAL

239,901,4
84

342,584,7
10

511,447,9
64

788,605,8
09

876,426,37
8

Life Revenue Account


2004

2005

2006

2007

2008

TAKA

TAKA

TAKA

TAKA

TAKA

117,468,02
3

178,949,01
5

279,224,93
8

460,708,69
2

744,915,62
2

First Year Premium

131,603,3
07

195,736,0
45

271,250,6
59

337,134,0
02

152,306,7
58

Renewal Premium

112,158,1
27

164,841,5
96

282,196,7
56

379,090,7
41

198,789,0
21

192,156

109,181

135,916

244,126,8
48

360,769,7
97

553,556,5
96

716,360,6
59

351,095,7
79

145,389

19,128

243,981,4
59

360,769,7
97

553,556,5
96

716,341,5
31

351,095,7
79

INTEREST AND DIVIDEND

4,531,586

11,635,30
2

23,941,08
8

43,790,91
1

27,090,80
1

OTHER INCOME

156,135

151,168

29,527

124,827

964,230

Total Revenue

248,669,18
0

372,556,26
7

577,527,21
1

760,257,26
9

379,150,81
0

TOTAL

366,137,2
03

551,505,2
82

856,752,1
49

1,220,965,
961

1,124,066,
432

2004

2005

2006

2007

2008

TAKA

TAKA

TAKA

TAKA

TAKA

BAL OF FUND BEG OF YEAR


PREMIUM LESS REINSURANCE

Group Insurance
Premium

Less: Re-Insurance Premium

365,414

CLAIM UNDER POLICIES

By Death

1,294,728

3,336,157

3,293,951

6,499,639

5,085,174

by survival

18,239,007

31,061,443

64,538,171

72,887,271

60,437,477

by surrenders

188,359

140,940

991,157

2,102,038

1,034,077

by others

19,722,09
4

34,538,54
0

68,823,27
9

81,488,94
8

66,556,72
8

Commission

108,720,0
26

158,592,8
41

223,472,5
19

269,073,7
42

163,021,4
10

salaries etc

54,545,15
9

67,026,77
2

90,168,20
6

104,194,4
08

57,140,01
4

OTHER EXPENSES

4,200,909

12,122,19
1

13,579,45
3

21,293,24
1

8,333,786

Total Expense

187,188,1
88

272,280,3
44

396,043,4
57

476,050,3
39

295,051,9
38

Bal of fund at the end of the


year as in BS

178,949,01
5

279,224,93
8

460,708,69
2

744,915,62
2

829,014,49
4

TOTAL

366,137,2
03

551,505,2
82

856,752,1
49

1,220,965,
961

1,124,066,
432

Annuity less Re-Insurance


EXPENSES OF MGT

9. Sandhani Life Insurance

Balance Sheet
CAPITAL AND LIABILITIES
SHAREHOLDERS' CAPITAL

31-Dec-04

31-Dec-05

31-Doc.-2006

31-Doc.2007

31-Dec.2008

Authorized
2,000,000 Ordinary Shares of Tk. 100 each

200,000,00
0

200,000,00
0

34,200,000

39,672,000

Issued, Subscribed & Paid up


Ordinary Shares of Tk. 100 each
Proposed Dividend

200,000,000

47,606,4
00
9,521,28
0

200,000,000

57,127,680

200.000.00
0

71,409,600

14,281,920

BALANCE OF FUNDS AND ACCOUNTS


Investment Reserve Account

56,274,842

96,427,901

2,561,336,73
8

3,671,182,7
27

1,102,476,7
44

1,657,15
7,643

938,935

938,935

231,184,38
4

248,237,21
0

265,171,
476

274,734,053

287,790,24
9

326,246

757,764

623,868

912,644

1,163,050

Claims Whether Due or Intimated

104,030,85
1

110,423,40
1

111,456,101

115,493,10
7

Sundry Creditors

101,027,16
5

102,423,87
6

156,188,215

164,417,70
6

Premium Deposits

15,056,591

19,058,833

6,177,093

6,716,386

5,000,000

7,000,000

Life Insurance Fund

701,445,04
9

Provision for Doubtful Debt


LIABILITIES AND PROVISIONS
Amount Due to Other Persons or Bodies
Carrying on Insurance Business
Estimated Liabilities in respect of outstanding

Provision for Share Value Fluctuation Account

116,765,
863
124,701,
596
13,092,9
20
9,000,00
0

Proposed Dividend

5,472,000

7,934,400

271,531

638,936

966,829,43
3

1,390,385,9
54

1,526,073

4,018,448

On Insurance Policies within their Surrender Value

648,620

2,918,771

Vehicle Loan Scheme

877,453

1,099,677

Provision for Doubtful Debt


TOTAL
PROPERTY AND ASSETS
LOAN

Higher Education Support Plan


INVESTMENT (AT COST)
Statutory Deposit with Bangladesh Bank (NIB)
Jatiya Biniog Bond (NIB)

246,933,56
1

391,285,27
8

2,000,0
00

2,000,00
0

178,500,00
0

314,000,00
0

Bangladesh Govt. Treasury Bond (BGTB)


Shares

64,433,561

73,285,278

2,000,000

2,000,000

198,294

48,293

OUTSTANDING PREMIUM

11,843,413

8,602,133

INTEREST, DIVIDENDS & RENTS ACCRUING BUT


NOT DUE

40,007,326

78,898,301

SUNDRY DEBTORS

14,034,973

14,956,859

CASH, BANK AND OTHER BALANCES

554,005,80
0

757,767,58
4

On Fixed Deposit

253,500,00
0

391,600,00
0

On Current and STD Account with Banks

81,451,451

112,928,63
8

Collection in hand

214,179,45
5

243,492,58
4

Cash in hand

2,117,997

3,839,056

Forms, Stamps and Stationery in hand

2,756,897

5,907,306

Fixed Assets (at cost less depreciation)

98,279,993

134,809,05
8

TOTAL

966,829,43
3

1,390,385,9
54

Debenture's
AGENTS BALANCE

OTHER ASSETS

987,229
1,979,45
6,799
41,444,2
14
1,903,46
4
540,750
39,000,0
00
523,602,
805
2,000,00
0
437,000,
000
82,602,8
05
2,000,00
0
48,293
5,029,65
5
111,388,
516
30,462,5
15
1,017,74
2,618
718,700,
000
107,916,
073
179,931,
855
3,182,37
2
8,012,31
8
249,738,
183
1,979,45
6,799

2,964,694,16
8

4,127,749,4
12

48,701,613

60,922,629

3,584,863

7,100,959

616,750

1,021,670

44,500,000

52,800,000

936,007,025

1,192,680,1
96

2,000,000

2,000,000

325,000,000

358,000,00
0
666,300,00
0

88,507,025

166,380,19
6

518,500,000

2,000,000

4,218,998

2,840,156

153,880,799

222,224,80
0

48,937,415

56,916,276

1,515,354,94
5

2,325,909,1
16

1,219,200,0
00

1,977,300,0
00

67,379,321

61,414,43
2

226,118,01
6

285,117,09
3

2,657,608

2,077,591

8,729,997

9,476,963

248,663,376

256,779,27
6

2,964,694,16
8

4,127,749,4
12

Life Revenue Account


2004

2005

2006

2007

2008

BALANCE OF FUND AT THE BEGINNING OF THE


YEAR

464,384,089

PREMIUM LESS RE-INSURANCE

705,995,677

701,445,049
1,120,624,8
12

First Year Premium (Ordinary Life)

82,443,450

121,179,455

(Greha Sanchay)

53,189,727

84,368,362

154,953,166

254,633,774

94,017,789

171,392,620

384,604,132

631,574,211

185,310,531

216,780,003

(Greha Sanchay)

52,380,582

75,110,830

(Takaful, IDPS, GIDPS, ISB & SIDPS)

43,355,921

113,247,565

(DPS & GDPS) GDPS)

39,695,780

82,229,038

320,742,814

487,367,436

1,102,476
,744
1,351,49
9,678
125,028,4
17
81,194,56
1
248,316,6
10
206,500,7
12
661,040,3
00
226,891,8
43
111,471,8
53
202,562,4
38
146,739,9
23
687,666,0
57

809,939
706,156,885

2,306,119
1,121,247,7
66

161,208

622,954

41,473,817

(Takaful, IDPS, GIDPS, ISB & SIDPS)


(DPS & GDPS)

Renewal Premium (Ordinary Life)

Group Insurance Premium


Gross Premium
less: Re-Insurance Premium
INTEREST, DIVIDEND AND RENTS
OTHER INCOME

1,657,157,6
43
1,713,230,8
47

2,561,336,73
8
1,902,827,88
5

147,033,069

197,697,676

65,705,505

58,933,314

246,721,171

249,782,597

185,885,188

141,618,295

645,344,933

848,031,882

326,991,184

383,187,042

151.386,880

158,625,389

339,492,567

410,260,891

247,074,063
1,064,944,6
94

300,141,603
1,252,214,92
5

3,229,121
1,351,93
5,478

3,839,783
1,714,129,4
10

3,719,650
1,903,966,45
7

898,563

1,138,572

60,316,750

435,800
109,319,5
48

176,007,134

288,125,197

1,816,885

718,930

20,957,305

9,731,545

25,000

19,356

70,000

186,490

261,458

324,971

138,549

721,617

517,629

30,555,127
1,242,670,1
68
778,286,0
79

1,466,914
1,884,203,4
96
######
####

561,025
2,564,014
,900
1,461,538
,156

20,165,688
3,567,352,9
29
######
####

9,027,426
4,762,021,36
5
######
####

148,489,594

159,047,699

162,446,
989

211,518,405

272,549,812

2,028,086

3,317,239

6,350,123

12,026,042

18,426,032

10,768,134

16,126,994

12,808,380

22,682,100

133,996,603

137,995,812

1,701,434
150,982,4
04

175,394,700

202,622,260

1,219,500

783,397

148,012,323

30,816,585

Profit on Salo of Vehicle


Late Fee and Miscellaneous
Profit on Sale of Share's Investment
TOTAL
total revenue

CLAIMS UNDER POLICIES


(including provisions br dairrs due or In'rr led) less ReInsurance

By Maturity
By Death
By Survival
By Others

Surrenders

EXPENSES OF MANAGEMENT

763,117

342,965

158,223,442

986,932
160,020,
893

200,992,239

241,073,357

477,271

824,257

2,426,096

10,526,166

28,476,455

376,357,980

596,004,525

706,866,
669

752,961,978

780,746,641

85,627,693

149,427,089

157,489,2
85

192,532,688

207,546,706

193,889,032

308,680,389

364,084,811

338,151,425

279,516,725

458,107,478

556,617,499

545,698,131

Commissions:
a) Conmtssion to Insurance Agents
(Lass that on Re-Insurance)
b) Allowances and Commissions
(other than commission Included in sub-Item(a) above)

364,126,5
17
521,615,8
02

185,250,8
67

Salaries otc

96,841,255

137,897,047

OTHER EXPENSES :

10,905,545

18,740,128

8,390,431

11,523,582

28,022,3
19
14,629,74
4

2,243,583

4,849,141

11,044,28
2

271,531

367,405

Depredation on Fixed Assets


Prior year's adjustment
Income Tax
Doubtful Debt

235,048,610

25,253,888

37,542,185

16,520,788

19,772,166

927,563
7,805,537

17,770,019

701,445,049

7,934,400
1,102,476,7
44

348,293
2,000,00
0
9,521,28
0
1,657,15
7,643

14,281,920
2,581,336,7
38

3,871,182,72
7

1,242,670,1
68

1,884,203,4
96

2,564,01
4,900

3,567,352,9
29

4,762,021,36
5

Transfer to Investment Reserve Account


Dividend
BALANCE OF FUND AT THE END OF THE YEAR
AS

196,344,479

2,000,000
5,472,000

2,000,000

SHOWN IN THE BALANCE SHEET


TOTAL