Ratio Analysis of Life Insurance - IBA

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.
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.
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.
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.
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.
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.
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.
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
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.
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
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.
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.
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

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.
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.
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

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.
Year
2004
2005
2006
2007
2008
14,196,
772
28,104,
574
36,110,
948
51,882,
103
79,046,5
37

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.
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

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.
Year
2004
2005
2006
2007
2008
30,952,
469
27,013,
877
11,236,
591
10,724,
570
14,446,2
67

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.
Year
2004
2005
2006
2007
2008
225,91
2,853
240,598,
274
255,184,
247
274,734,
053
287,790,
249

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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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
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.
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.
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.
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.
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.
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%.
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.
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.
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%.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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
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.
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.
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
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
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.
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.
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.
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.
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.
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:

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
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
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

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
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

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
Balance Sheet
2004
PARTICULAR
TAKA
2005
TAKA
2006
TAKA
2007
TAKA
2008
TAKA

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
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
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
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

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
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

Excess Provision Deth Claim
Written Back
1,598,365
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
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
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

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


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
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

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
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
Balance Sheet
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
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

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
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

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
First Year Premium
Renewal Premium
Gross Premium
Re-insurance Premium
403,214,748
606,176,014
OTHER INCOME
Total Revenue
Total
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
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
Balance Sheet
CAP & LIAB
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
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
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
freehold land
TOTAL
144,138,347
322,192,018
399,989,576

2004
2005
2006
2007
2008
TAKA
TAKA
TAKA
TAKA
TAKA
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

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
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
3,420,94
6
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

EXPENSES OF MGT
OTHER EXPENSES
Balance Sheet
CAP & LIAB

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
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
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

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
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

Group Insurance
Premium
365,414
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

EXPENSES OF MGT
Balance Sheet
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

Amount Due to Other Persons or Bodies
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

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

2004
2005
2006
2007
2008
BALANCE OF FUND AT THE BEGINNING OF THE

YEAR
464,384,089
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)

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
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

Ratio Analysis of Life Insurance - IBA

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Assignment on Ratio Analysis of Life Insurance

Companies listed in the DSE

Course name: Financial Markets and Institutions

Fahad Bin Sultan

Institute of Business Administration

Current asset: A balance sheet item which equals

the sum of cash and cash

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

in relatively good short-term financial standing.

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

companys capability to meet maturing current liabilities.

of debt and equity financing in a company.

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

income on assets employed.

management costs are covered by the premiums earned.

after-tax income (after

equity that are high and growing.

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

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

1.1 Current Ratio/ Working Capital Ratio

2. Meghna Life Insurance Co. Ltd.

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

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

1.2 Quick Ratio

1. Fareast Islami Life Insurance Co. Ltd.

Total Current Liability

Total Current Liability

Total Current Liability

Total Current Liability

Total Current Liability

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

Total Current Liability

Total Current Liability

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

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

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

1.3 Cash Ratio

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

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

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

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

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

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

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

10. Industry performance in 2008

1.4 Total Assets Turnover

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

3. National Life Insurance Co. Ltd.

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

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

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

7. Progressive Life Insurance Co. Ltd.

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

2.1 Equity Ratio

2. Meghna Life Insurance Co. Ltd.

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

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

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

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

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

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

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

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