Introduction:

Meghna Life Insurance Co. Ltd Fundamental Company Report provides a complete overview of the companys affairs. All available data is presented in a comprehensive and easily accessed format. The report includes financial and SWOT information, industry analysis, opinions, estimates, plus annual and quarterly forecasts made by stock market experts. The report also enables direct comparison to be made between Meghna Life Insurance Co. Ltd and its competitors. This provides our Clients with a clear understanding of Meghna Life Insurance Co. Ltd position in the Insurance Industry.

Meghna Insurance Company Limited At a glance:

Meghna Insurance Co. Ltd was incorporated on 18th March 1996 under the company Act 1994 as a public company limited by shares for carrying out all kinds of general insurance activities and was granted certificate for commencement of Business on 8th February 2000 for general insurance business. The Authorized capital is Tk. 200 million consisting of 2,000,000 ordinary shares of Tk. 100 each. The sponsors/subscribers have already contributed to the paid up capital of Tk. 60.00 million as required by the Chief Controller of Insurance. In fulfillment of the conditions of license by the Chief Controller of Insurance, the company now proposes to raise the paid up capital to Tk. 150.00 million by issuing 900,000 ordinary shares of Tk. 100.00 each by way of initial public offering (IPO). Since its establishment in 1996 as one of the leading general insurance companies in the private sector, the Company has within a short span of time established itself as one of the most reputed and trustworthy insurance companies in the country. Selective underwriting and prompt settlement of claims have contributed towards building up a very respectable image of the Company within the business community. The Company has 18 branches throughout the country.

About the company: n the ninetieth decade some enthusiastic Bangladeshi professionals along with some others of similar state of mind dreamed of establishing a Life Insurance Company in order to participate in the financial activities of the country such as reduction of unemployment, alleviation of poverty and to contribute to the nation for the upliftment of the lot of common people. Eventually due to ceaseless efforts and courageous initiative of the Chairman and some other entrepreneurs, Meghna Life Insurance Co. Ltd. was emerged in 1996.

The main object of Meghna Life was to provide maximum financial security to a person and families by giving modern Insurance facilities. Its other objectives are to turn it into a profitable savings institution through payment of bonus at an attractive rate and enriched servicing and invest the accumulated small savings in the nation building various welfare and profitable projects. Meghna Life Insurance Co. Ltd. was accorded formal approval by the Govt. on 5 th May, 1996. It was emerged as the 4th Private Sector indigenous Life Insurance after a prolonged complicated process of preparatory work under the guidance and leadership of Mr. Nizam Uddin Ahmed, the current and founder Chairman of the Company. It started carrying on the Life Insurance business since 1st June, 1996. Meghna Life has now consolidated its position on strong footing. A transparent and accountable management is here who are working relentlessly to boost up its position on a prestigious level. The authorised capital of the company is Tk. 30 crore and paid up capital at present stands at Tk. 9.375 crore. In 1996 Premium income, Life Fund & Investment was Tk. 3.30 crore, Tk. 0.04 crore & Tk. 2.59 crore respectively and in 2006 such Premium income, Life Fund & Investment increased to Tk. 231.27 crore, Tk. 415.91 crore & Tk. 130.71 crore respectively. From 1996 to 2008 Meghna Life paid 33.47 crore taka as death claim, taka 47.03 crore as survival benefit Tk. 4.78 crore as maturity claims and Tk. 2.42 crore as bonus to the policy holders. This success has been possible due to constant guidance supervision and ceaseless efforts of the Honble Chairman and Directors and the present competent management. It soon made a mark in the Life Insurance arena by not only being the top listed among the Private sector indigenous companies, but by undertaking and successfully implementing innovative and welfare oriented Life Insurance schemes. It introduced an array of conventional Life and other Insurance products of Loko Bima, Islami Bima (Takaful) Swanirvor Bima and Islami Khudra Bima (Takaful) many of which were the first in Bangladesh. For the first time Hospitalization benefit Insurance product was also introduced by Meghna Life. Meghna Life has earned reputation in every corner of the insurance Industry. It can take pride of its prestigious achievements which are moulded with transparency, accountability, impeccable working capacity, sincerity, honesty and sagacity. The company has diversified its products to match customers needs and satisfaction. Currently it provides multifarious Life Insurance products to cater to the aspirations & needs as well as religious beliefs to the clients. There is no iota

of doubt that Meghna life will go forward with its new missions and visions in the days to come.

Corporate information: Date of Incorporation : 05.05.1996 Commencement of Business : 05.05.1996 with Department of Insurance : 01.06.1996 Registered Office : Biman Bhaban (2nd floor) 100, Motijheel C/A., Dhaka-1000, Bangladesh. Phone, Fax & e-mail : 880-2-9558297, 880-2-9558993, 880-2-9556204 Fax No. : 880-2-7171942 e-mail : [email protected] [email protected] Authorized Capital : Tk. 30 Crores Issued, Subscribed and paid up Capital : Tk. 16.45 Crores Auditors : A. Wahab & Co. Chartered Accountants Date of 1st Trading of share in DSE & CSE : 04.09.2005 Legal Adviser : The Law Society, Dhaka. Board of Directors: Chairman Nizam Uddin Ahmed Vice-Chairman Hasina Nizam Directors Md. Jamal Uddin Nasir Uddin Ahmed Jobaida Nasreen Sharmin Nasir Dilruba Sharmin Mazharul Islam Independent Director

Professor Md.Mohiuddin Managing Director Muhammed Shah Alam, FCA Company Secretary Mian Mohd. Mashiur Rahman Management: Managing Director Muhammed Shah Alam FCA Director-Marketing & Development Lt. Col. (Retd.) M. Shamsuddin Ahmed Adviser M. A. Majid FCA Consultant-Marketing & Dev. M. Sultan Khan Deputy Managing Directors Md. Khorshed Alam D. S. Taiful Islam N. C. Rudra Sadequr Rahman Senior Executive Directors Md. Mohidur Rahman Khan Md. Abdur Razzaque Executive Director Abu Bakar Siddik Sohel Quamrul Hasan Khondker Joint Executive Director Faruk Ahmed Siddique

Senior General Manager Md. Shamsul Hoque Md. Kazi Ataur Rahman Saifuddin Ahmed (Opu) Aziz Ahmed General Managers Nurul Aman Chowdhery Shajahan Ali Mollick Md.Nizam Uddin Monirul Hasan Milon Abdul Kader Company Secretary Mian Mohd. Mashiur Rahman :: Company :: Committees Members of Audit Committee Professor Md. Mohiuddin Chairman Nasir Uddin Ahmed Member Sharmin Nasir " Members of Management Committee Muhammed Shah Alam FCA Chairman M.A. Majid, FCA Member Lt. Col. (Retd.) " M. Shamsuddin Ahmed Md. Khorshed Alam " D. S. Taiful Islam " N.C. Rudra " Md. Mohidur Rahman Khan " Md. Abdur Razzaque " Abu Bakar Siddik Sohel " Md. Shamsul Hoque " Mian Mohd. Mashiur Rahman Member Secretary

The Shariah Council:

1 Professor Moulana Muhammad Salah UddinChairman Khatib, National Mosque Baitul Mukarram, Dhaka. 2 Justice Mohammed Abdur RoufMember Former Chief Election Commissioner. 3 Moulana & Poet Ruhul Amin KhanMember Joint Secretary, Jamiatul Modarresin & Editor, Daily the Inquilab, Dhaka. 4 Mufti Mohammed Nurul Huda Fayazi, PirMember SahebKarimpur. Chairman, Quran Education Board, Bangladesh. 5 Moulana Mohammed SalehMember Principal, Madrasa-e-Alia, Khulna. 6 Doctor Moulana M.A FaruqueMember Chairman, Islamia Studies Department, South East University 7 Moulana Mohammed Ali Hossain.Member Ex-Principal Islamia Alia Madrasa, Chalkbazar, Comilla. 8 Mufti Muhammad Amimul Ehsan Muraqib COMPANY REPRESENTATIVES 9 10 11 12 Al hajj Nazim Uddin Ahmed Chairman Muhammed Shah Alam FCA, Managing Director Abu Bakar Siddique Sohel, (ED-Islami Khudra Bima) Quamrul Hasan Khondker, (ED-Islami Bima) Member Member Secretary

Major Offices: Ekok Bima Loko Bima Islami Bima (Takaful) Head Office 1 Regional6 Office 4 6 District 590 Zonal Islami Khudra Bima (Takaful) Swanirvor Grand Bima Total

1 192 3 2540

Divisional1 Regional 9 Office 8 Office 8 Zonal 9 District 173 Zonal

Office

6 Office 7

Office

0 Office

Office

Branch 287 Thana10000 Branch245 Thana373 Branch 4 15181 Office Office Office Office 7 Office 8 Total 402 11835 305 439 3 8 0 17917

Products: Meghna Life Insurance Company Ltd. has introduced innovative and attractive policies with a view to attract different class of people of the country. At present Meghna Life Insurance Company is offering the following policies in other 6 (Six) different categories: Ordinary Islami Islami Swanirvar Bima Life Group Loko Bima Khudra Bima (Ekok Bima) Insurance Bima (Takaful) (Takaful)

Ordinary Life (Ekok Bima) : Meghna Life offers a wide variety of ordinary life product/plans ranging from the most common endowment type to more modern and sophisticated plans like endowment with open term, pension plan, child protection plan, etc. and the aim of increasing pension, increasing protection with provision for premium refund etc. The plans have been designed keeping in view the diverse and multifaceted needs of the insuring public belonging to different strata of the Society. The followings are the Plans of Ordinary Life: (Ekok Bima)

Sl. 1. 2. 3.

Schemes Endowment Insurance Plan - with Profits 3 (three) Payment Insurance Plan - with Profits Biennial Endowment Insurance - with Profits 7

4. 5. 6. 7. 8. 9. 10. 11. 12.

Child Protection Endowment Insurance - with Profits Insurance Cum Pension Plan - without Profits Single Premium Guaranteed Benefit Plan - without Profits Education Expense Insurance Plan - with Profits Premium Back Term Insurance - without Profits Islami Endowment Plan - with Profits Islami Biennial Payment Assurance Plan - with Profits Islami 5 (five) Instalment Insurance Plan - with Profits Meghna Life DPI - with Profits

Group Insurance : This scheme has been designed to make the officials and employees of Meghna Life Insurance Co. Ltd. free from tension and financial hardship. With a very small premium, very large amount of Sum-assured may be taken with regard to the risk of accident and premature death. The arrangement of Group Insurance may be made if at least 10 members are there. In case of group term Insurance there may be 5 members. Premium normally be paid on annual basis. The premium of this insurance may be paid fully or partially by the employees and the employers. Loko Bima : Loko Bima Project was emerged on 13th June 1998. The aim and object of Loko Bima Project is to arouse 90%. People of the country towards savings and to make them conscious and self-reliant through Insurance. This project plays a very important role in solving social problems of a large number of people by reduction of unemployment, population control, development of cottage Industry, rural development so to say social backwardness etc. The following are the plans of Loko Bima-

Sl. 1. 2. 3.

Schemes Endowment Insurance plan - with Profits. Child protection Endowment Insurance - with Profits. Meghna deposit Premium scheme - with Profits.

4.

Single Premium Insurance - with Profits.

Islami Bima (Takaful) : The aim and object of Islami Bima (Takaful) is to provide more financial security of the mass people of this country through this project. This project was introduced to turn Life Insurance into a profitable savings arrangement through payment by instalments on the basis of Islami Shariah and transparent and impeccable servicing. The followings are the Plans of Islami Bima: (Takaful)

Sl. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Schemes Islamic Endowment Insurance Plan (Takaful) - with Profit Islami Takaful 3 (three) Payment Insurance Plan - with Profits Islami Bima (Takaful) Biennial Endowment Insurance Plan - with Profits Islami Bima (Takaful) Child Protection Endowment Insurance Plan with Profits Islami Bima (Takaful) Insurance-Cum Pension Plan - without Profits Islami Bima (Takaful) Single Premium Guaranteed Benefit Plan without Profit Islami Bima (Takaful) Education Expense Insurance Plan - with Profits Islami Bima (Takaful) Premium Back Term Insurance - without Profits Islamic Endowment Plan (Takaful) - with Profits Islamic Biennial Payment Assurance (Takaful) Plan - with Profits Islami 5 (five) Instalment Insurance Plan - with Profits Takaful Islami DPI - with Profits

The project is conformed with a Shariah Council comprising 15 (Fifteen) members. Islami Khudra Bima (Takaful) : The object of Islami Khudra Bima (Takaful) is to create habit of savings for the low income group of people of Bangladesh, ensure profit and savings through modern Insurance facilities and to introduce interest free Islami Bima. These are 9

the

following

plans-

Sl. 1. 2. 3. 4.

Schemes Endowment Insurance - with Profits. Child Protection Endowment Insurance - with Profits. Single Premium Guaranteed Insurance - with Profits. Islami Khudra DPS - with Profits.

Supplementary Hospitalization Insurance Benefit Those who are within the age of 18 to 55 years, they take this Insurance with the principal policy. Advantages available in the Staying in the Private Doctors Consultation Diagnosis Surgical Operation Relevant Services Hospitalroom. Fees. expenses. expenses. Medicine. Expenses.

The special characteristic of the scheme: This advantage may be taken for wife and children of the policyholder. Very less premium. Any medical facility is available at home and abroad. Facilities of any Govt. Hospital or any other Private Hospital with 50 beds may be available. Medical treatment expenses in any extraneous hospitalization will be borne in Bangladeshi Currency. Consultation of Doctors may be taken with ones own choice. Rebate of Tax is available. Rules of payment of medical bill of the Hospital The company will directly make payment of the Hospital bills subject to admission in the Hospital approved by the company. Re-imbursement: If the policyholder himself bears expenses on approved treatment from the Hospital which has no contract with the company, in that case the company will reimburse Hospital bills. But in these cases all the vouchers and papers shall be deposited within 30 days after release from Hospital and the company will arrange reimbursement of those after due scrutiny.

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Supplementary Dread Disease Benefit (DDB 50%, 25%) Disease and old age complicacy is indissolubly linked with human lives. Men can, at anytime be attacked with serious disease and they may not be capable to have proper treatment immediately. In this connection, Meghna Life can provide money for treatment of such fatal diseases by DDB. Whatever Sum-assured may be, the supplementary Insurance cannot exceed 10 lac as facility. If the policyholder is attacked with any of the following disease, 25% of the Sumassured be paid immediately:

1. 2. 3. 4. 5. 6. Paralysis.

Heart Stroke Coronary Kidney Multiple Artinary

attack Surgery Failure Sclerosis

Supplementary Accidental Death Benefit (ADB) This supplementary Insurance may be taken adjoining the Endowment Assurance, Whole Life Assurance, Term Assurance, Group Insurance or pension scheme. ADB is normally given as supplementary cover with the Principal Insurance policy. The advantages of taking ADB as supplementary cover with any Life Insurance policy is that if any policyholder dies due to accident the nominee of the insured will be provided with an amount equivalent to the Sum-assured within 90 days. The rate of premium is low in this Insurance as a result the Insured can take this policy as supplementary Insurance on nominal condition.

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Supplementary Permanent Disability and Accident Benefit (PDAB) PDAB policy can be taken for death or disability by physical hurt due to accident. In case of death the nominee of the Insured will get an additional amount equivalent to principal Sum-assured. An amount equivalent to the Sum-assured is also paid to the nominee of the policyholder instantly if both hands or both legs or both the eyes or one hand and one leg are lost. In case of fully and permanent disability, the policyholder will be given 10% of the principal Sum-assured for next 10 years since the happening of accident as yearly allowance. In case of one leg or one hand and an eye are lost, the policyholder will be given 50% of the Sum-assured instantly. At the maturity, the full Sum-assured is paid.

Training: There is no alternative to rise up in life without education and Training. Educational qualification is an indispensable part of a person engaged in any profession. Present age is the age of having expertise in any subject matter. One must have sufficient knowledge on the works he has to do. It accelerates his prosperity if he deserves his ability through achieving proper education and training. The management of Meghna Life Insurance Co. Ltd. has long been thinking to create technically qualified persons having sound knowledge on Insurance profession by giving them proper training and professional education. With this end in view the management opened a training cell in the company and appointed a senior official to impart professional training to the officials engaged both in the field as well as in the Desk. In the year at 2009 the company conducted different training courses on different subject matters for its officials which are as follows:

Sl.No. Course Held

Number of Total Trainees Courses

12

1. 2. 3. 4. 5.

Sales Course

30

2767 64 45 721

Underwriting and Claims Management 3 Course Finance and Accounting Management for 3 Insurance Operation Sales Course for the Zone/Branch In 12 charges. Special Course for Directors and Joint Directors, SVP and VP etc. Office Management Course Basic Course on Life insurance Training of Trainers (ToT) Executive Executtive 2 2 1 53

6. 7. 8.

82 12 2 3,693

53 Training courses were held in different Divisional offices including Head office of the company where 3,693 officials participated. The company also sent its officials to the Bangladesh Insurance Academy where 5 training courses were held and 20 officials participated in those courses. Besides, Meghna Life also introduced coaching classes since 2001 for the Diploma course conducted by Bangladesh Insurance Academy in its own premises where a good number of officials attended the classes. In the meantime, some of the officials have passed in the examinations. Meghna Life Insurance Company Ltd. during 2001-2009 initiated epoch-marketing steps to professionally train up their officials and to make them fit to handle any technical works smoothly and perfectly.

Sales training:
A sales Training course for the officials of Loko Bima was held at the Head Office recently. Hon'ble Chairman, Mr. Nizam Uddin Ahmed, Managing Director and the Adviser are seen in the picture.

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Progress at a glance in last five years

14

Progress at a glance last 10 years

Particulars 2009 2008 78.31 2007 64.87 2006 58.26 2005 49.17 57.64 .26 2004 34.30 41.59 .22 2003 2002 2001 2000 27.41 23.35 17.90 12.09 28.69 19.26 12.01 7.28 .25 .17 .13 .09

1st Year 89.96 Premium Renewal Premium Group Premium Gross Premium

177.10 152.30 118.81 89.84 0.88 .65 .59 .35

267.94 231.27 184.27 148.45 107.07 76.11

56.35 42.78 30.04 19.46

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Investment Income Other Income

55.73 0.42

35.84 .25

21.40 .10

10.35 .15

6.20 .44

3.44 .32

2.04 .78

1.29 .14

.91 .12

.55 .17

Total Income 323.52 266.96 205.15 158.59 113.03 79.87 Policy Benefits 58.14 42.58 31.02 76.23 41.36 20.31 64.34 43.34 13.08 52.65 49.16 8.17 38.71 50.86

59.17 44.21 31.07 20.18 5.35 4.16 2.60 1.02

Management 114.91 94.34 Expenses Overall Expenses Ratio(%) Life Fund Investment Portfolio 42.88 40.79

32.93 26.23 18.65 12.47 58.43 61.31 62.08 64.08 53.65 34.28 21.19 12.08 26.57 15.84 9.90 7.57

550.57 415.91 294.23 201.33 131.00 84.99 413.88 291.06 200.78 130.80 82.70 44.80

Total Assets 618.81 474.73 342.84 242.10 164.05 106.10 71.68 50.58 34.89 21.96

Business performance:
2009 Ordinary New Business Number of Policies Sum Assured (In Crore Taka) 52,102 460.76 43,579 364.84 30.13 44.620 328.77 27.71 44,599 292,93 24.76 42,745 264.98 22.05 2008 2007 2006 2005 Life 32,210 192.39 16.89 30,651 179.51 15.62 2004 2003

1st Year Premium (In Crore 38.13 Taka)

Business In Force Number of Policies Sum Assured (In Crore Taka) 2,14,730 1,83,714 170,151 1491.79 929.68 862.76 1,46,48 4 729.96 1,22,342 601.43 75,305 430.52 61,773 351,08

Loko New Business Number of Policies Sum Assured (In Crore Taka) 1,24,818 1,71,993 1,53,368 364.42 400.34 26.64 289.17 20.27 1,49,44 1 260.00 18.58 1,50,452 237.98 15.72

Bima 1,09,50 2 164.98 10.13

87,476 125.23 7.43

1st Year Premium (In Crore 27.23 Taka)

Business In Force Number of Policies 5,09,070 4,23,148 3,09,213 2,52,74 0 2,09,761 84,885 69,959

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Sum Assured (In Crore Taka)

1042.23

594.12

331.63

282.13

244.40

127.02

101.12

Islami New Business Number of Policies Sum Assured (In Crore Taka) 21,653 175.41 20,640 157.63 13.42 19.128 138.28 11.91 18,589 120.46 10.49 17,024 93.98 7.79

Bima 9059 57.46 5.27 7,278 43.93 4.11

1st Year Premium (In Crore 14.96 Taka)

Business In Force Number of Policies Sum Assured (In Crore Taka) 69,898 495.05 56,845 323.82 45.173 265.03 25,586 205.92 26.431 147.31 14.018 87.80 9,496 56.62

Islami New Business Number of Policies Sum Assured (In Crore Taka) 28,578 79.86

Khudra 38,172 84.66 6.71 33.240 65.82 4.98 36.645 65.94 4.43 30,281 54.69 3.61

Bima 22,475 39.30 2.01 -------

1st Year Premium (In Crore 6.73 Taka)

Business In Force Number of Policies Sum Assured (In Crore Taka) 80,236 181.73 63,177 103.61 42.118 63.04 30.580 49.42 17,483 32.43 12,478 23.23 -----

Group New Business Number of Policies Sum Assured (In Crore Taka) 16 16 5 19.93 .010 1984 4 1.91 .015 274 4 .35 .029 124 -------------------------

Annual Premium (In Crore Taka) 55.73 No. of Lives Insured 7530

Business In Force Number of Policies Sum Assured (In Crore Taka) No. of Lives Insured 16 16 7530 11 70.12 7.149 8 49.02 2,997 7 6.45 2,475 4 30.11 2,187 4 15.50 2,013 4 13.37 1,531

Swanivar New Business Number of Policies Sum Assured (In Crore Taka) 4,699 35.91 2.291 6.75 1.41 -------------------

Bima -------------

1st Year Premium (In Crore 2.91 Taka)

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Business In Force Number of Policies Sum Assured (In Crore Taka) 5,121 39.49 2,291 6.75 ----------------------

Publications and library facilities:

Meghna Life Insurance Company Ltd. took initiative to bring out a publication titled Meghna Life since its inception. At the outset it was a half yearly publication comprising the news and views of the company. From 2000 it is being published yearly. But from Oct., 2004, this publication with the same title Meghna Life is being published as a monthly bulletin with a new look and new vision. This Bulletin has aroused much enthusiasm and Zeal amongst the officials specially working in the field. Its a special publication of its kind which demonstrates Business performances for every month. This is reserved for the officials of Meghna Life only. Other than these, special publications are also brought out in the wake of any seminar, symposium, meetings etc. Meghna Life has brought out the following publications Remarks Published 1997-2004 2003-2004 Oct. 04-March, 05 2000-2003 Since 1997 in Bengali-

Title Meghna Life Islami Bima (Takaful) Meghna Life (News Bulletin) Loko Bima Annual Report

Mode Publication Half Yearly Yearly Monthly Yearly Yearly

of No. of Issues 10 2 5 3 8

Besides Meghna Life also publishes leaflets, Booklets, special issues of different projects detailing different plans and other relevant information. Library Facilities: Meghna Life has a mini Library. There are some books on different subjects of Insurance such as Life Insurance, General Insurance, Salesmanship, Insurance law, Re-Insurance, Management and other rare books in the Library. The officials of Meghna Life Insurance Company have the opportunity to collect books from Library for reading.

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Meghna

Life

donated

Taka

10

Lac

to

the

Army

Relief

Fund

Mr. Nizam Uddin Ahmed, Chairman, Meghna Life Insurance Company Limited accompanied by Lt. Col. (Retd.) M. Shamsuddin Ahmed, Director of the Company is seen handing over a Cheque for Taka 10 Lac to General Moyeen-U-Ahmed, Chief of Bangladesh Army Staff recently for the SIDR hit people.

RISK FACTORS AND MANAGEMENT PERCEPTION REGARDING RISKS: management team and expanding trend of insurance business in the country. MICL has already proved its leading role by its attractive earning performance. The coverage of natural calamities like cyclone, flood by insurance may severely weaken the financial strength of the company by accruing heavy claims on its own retained account. The estimated losses arising from natural calamities are covered by higher rates of premium and reinsurance coverage for such losses. Management has taken into consideration statistical assessment of occurrence of natural calamities in setting its rates of premium and reinsurance risks. Moreover, most of our trained port folios (Fire ncluding flood, cyclone risks) are protected under catastrophic Excess of Loss Treaty with S.B.C. The company is operating in a field involving a great deal of external/internal risk factors and the management of Meghna Insurance Company Limited perceives the risk actors which are as follows simultaneously:Interest rate risks: Interest rates change may affect profitability of the company for borrowing or investment. Management Perception: Company runs its business on the guideline of Insurance company act. The company does not involve with any large borrowing however it has substantial amount of FDR. In the recent change in interest rate, the management is planning to diversify its

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investment in capital market and other profitable area of investment with compliance of Insurance Act as well. Exchange rate risks: Devaluation of local currency against major international currencies may affect companys marine insurance business adversely. Management Perception: Marine insurance always covered by re-insurance with international re-insurer. Besides this if there is any burden for the company that will be overcome by the increased business on other areas. Industry risks: I. Liberalization of permission to set up more insurance companies by the Government. II. Natural calamities Liberalization of permission to set up more insurance companies by government may result in severe competition amongst insurers resulting in reduction of premium income and profitability of the company. Management Perception: Though liberalization of permission to set up more insurance companies by government may be encouraging to new entrants resulting tough competition, MICL does not apprehend any loss of business due to its competent and highly experienced. Market & Technology related-risks: To be competitive in the market, insurance companies need to develop new products and offer excellent clientele services and also to expand the market by bringing more and more items under the preview of insurance otherwise the competitors may take away companys business. Management Perception: Insurance business globally is increasing. New items are coming under the cover of insurance as days pass by, the market is expanding as people are realizing the importance of insurance. Because of our excellent services and introduction of new products, the company does not envisage any market & technological related risks. Potential or existing government regulations: Government policy change in respect of imposing new tax, VAT, stamp duty, rates of premium, underwriting commission, agents commission, reinsurance commission, interest on deposits etc. may affect income and profitability. Management Perception: According to the Insurance Act 1938 and Insurance rules 1958 all insurance companies have to comply with the allowable limit of expenses and investment. In the recent past Caretaker Government new Insurance Act 2008 has been introduced which already approved in the committee of Jatio Sangsad of the present government, which is very much favor of the insurance industry. Potential changes in global or national policies: Any structural change in the international insurance business adversely affecting

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reinsurance operations may have negative impact on the profitability of the company. Management Perception: The history of insurance/re-insurance business for over two hundred years proves that any major structural change affecting our reinsurance business is unimaginable. Any such event would create a global destabilization which the major economies must not cause to happen. History of non-operation, if any: Is there any chance for the company to become non-operative? Most of the general insurance companies in Bangladesh run its business successfully and after IPO increases its efficiency and accountability under supervision of regulatory body. So chance to become non-operative in future is minimum. Operational risks: Political and social unrest situations may affect smooth operation of the business resulting in drastic fall to the value of its investment. ] Management Perception: Political unrest in the past could not reduce the premium income of the company as the shortfall is overcome by increased income in subsequent period.

Settleemnt of claims:
Claim Under Policies (Including Provision For Claims Due or Intimated) Less Re-Insurance by Death/Survival : Tk. 581,411, 516
Particulars By Death By Survival By Surrender Bouns in Cash Claim by Maturity Total 2009 Total 2008 Ordinary Life 14,633,050 247,312,826 2,095,828 46,561,674 66,445,080 377,048,458 312,131,728 Loko Bima 6,190,704 7,159,600 2,515 21,274,454 74,639,004 109,265,931 42,333,086 Islami Bima 2,361,090 91,863,600 356,656 197,143 94,778,490 68,506,033 Islami Khudra 179,591
Swanirvar Bima

Group

Total 23,467,936 346,336,026 2,454,635 68,068,835 141,084,084 581,411,516 425,872,132

103,500

53,024 215,155 1,530,986

665

1,370,299

103,500 970,00

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During the year 2009 the company has settled and adjust Tk. 580,462,700 including last year outstanding claims worth Tk. 259,577,955 as death claim, maturity claims and survival benefit. The amount of Tk. 271,691,732 was outstanding as on December 31, 2009. Out of outstanding amount, the company has settled Tk. 255,303,937 as of the date of audit

News & Events: DATE SUBJECT Dear : : Price 2205Sensitive 2010 Information Sir,

This is for kind information of all concerned that the Board of Directors of Meghna Life Insurance Company Limited in its 82nd (Emergent) meeting held on 22nd May, 2010 at 4.15 p.m. to 5:15 p.m. has taken the following price sensitive decisions:
1. Denomination share value of: To change the denomination of share value of the company from Tk. 100.00 to Tk. 10.00 each having the market lot as 50 (Existing market lot) shares subject to approval of the shareholders and the regulatory authorities. : To purchase a commercial floor space measuring 3,500 sft. at 2nd floor of AFFORD SULTAN ELYSIUM PLAZA, Mouza- East Nasirabad, Chittagong Divisional Town, Chittagong, total value to the tune of Tk. 2,45,87,500.00 (Two crore forty five lac eighty seven thousand five hundred) only excluding the cost of stamp, registration fee and other related expenses.

2. Purchase of a commercial space

Thanking Yours faithfully, Mian Company Mohd. Mashiur

you,

Rahman Secretary

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