Annual Reportannual 2009 K´Vkf Ujal A¿Mqpr¿ Kukopac Pragati Life Insurance Ltd

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Annual Reportannual 2009 K´Vkf Ujal A¿Mqpr¿ Kukopac Pragati Life Insurance Ltd Annual ReportAnnual Annual Report 2009 2009 Pragati Life Insurance Ltd. Insurance Life Pragati k´VKf uJAl A¿MqPr¿ KuKoPac Pragati Life Insurance Ltd. TRUST US FOR LIFE Head Office: k´VKf uJAl A¿MqPr¿ KuKoPac Pragati RPR Center (6th Floor), 20-21 Kawran Bazar, Dhaka 1215, Bangladesh Pragati Life Insurance Ltd. Web: www. pragatilife.com TRUST US FOR LIFE About Pragati Life Insurance Ltd. Pragati Life Insurance Limited, a third Pragati Life was established with the vision of generation life insurance company, participating effectively in the process of providing was set up on January 30, 2000 as a economic security to the clients as well as to facilitate public limited company under the creation of long term capital in the market. Pragati Companies Act, 1994 with the Life, in the process of materializing its vision, has been philosophy of maintaining developing new customer oriented and innovative competitiveness, balanced with products developed by its own Actuarial Department. prudent management and fairness Within a short span of time, the company has created to all the policyholders. It obtained a franchise value in the market by expanding its registration from the Department of business network with a diversified product line Insurance on April 11, 2000 under throughout the country. the Insurance Act, 1938 to carry out Pragati Life is the only life insurance company among life insurance business. The company the third generation life insurance companies in started with a paid up capital of Tk. Bangladesh which is reinsured with world’s largest 30 million against an authorized reinsurer-Munich Reinsurance Company, Germany, capital of Tk. 250 million. and the only life insurance company in Bangladesh Pragati Life has been sponsored by listed in International Directory. some renowned business Pragati Life is also the first insurance company in entrepreneurs of the country linked Bangladesh providing status of policies through to different industrial groups. The Push-Pull (SMS) service for its policyholders. company had gone for public Policyholders of the company can also know their offering of shares and raised its paid policy details through the official website. The up capital to the tune of Tk. 75 company has been awarded Credit Rating A+ by million in order to comply with the Credit Rating Information and Service Limited (CRISL) minimum capital requirement. The for its High Claims Paying Ability. shares of the company are listed with both the bourses of the country. TRUST US FOR LIFE Contents Chronology .............................................. 01 Message from the Chairman ............................. 02 Members of the Board of Director ........................ 04 Vision, Mission and Obectives ............................ 12 Corporate Management ................................. 14 Notice of the 9th Annual General Meeting ................ 16 New Business and Business in Force ...................... 17 Financial Highlights ...................................... 18 Directors Report ......................................... 19 Auditors’ Report ......................................... 41 Finincial Statements ...................................... 43 Balance Sheet ............................................ 44 Revenue Account ......................................... 46 Form - “AA” .............................................. 49 Statement of Life Insurance Fund ......................... 50 Statement of Cash Flow .................................. 51 Notes to the Financial Statements ........................ 52 Certificate Under the Insurance Act, 1938 ................ 68 Pragati Life Events ........................................ 69 Important Offices ......................................... 73 Map ...................................................... 86 Notes .................................................... 87 Proxy Form & Attendance Slip ............................ 89 TRUST US FOR LIFE Chronology Registration as a Joint Stock Company ............................ January 30, 2000 Commencement of Business ..................................... April 11, 2000 Signing of contract with the world’s largest reinsurer, Munich Re, Germany for reinsurance coverage ................... April 17, 2000 Signing of first policy ............................................. May 03, 2000 Inauguration of official website ................................... July 01, 2001 Appointment of Issue Manager .................................. December 22, 2004 Agreement with CDBL ............................................ September 25, 2005 Consent to issue IPO shares ...................................... October 16, 2005 Publication of Prospectus ........................................ October 19, 2005 Subscription Opens .............................................. November 24, 2005 Allotment of IPO Shares .......................................... December 28, 2005 Listing in Dhaka Stock Exchange ................................. February 06, 2006 Listing in Chittagong Stock Exchange ............................ February 06, 2006 First Trading in Stock Exchanges ................................. February 06, 2006 Holding the first public AGM (6th) ............................... September 17, 2006 Introduction of first ever Push-Pull service for policyholders’ information ....................................... March 01, 2007 Declaration of first policy bonus ................................... January 29, 2007 First Credit Rating ................................................ January 30, 2008 Pragati Life Insurance Ltd. Annual Report 01 Message from the Chairman TRUST US FOR LIFE Message from the Chairman ßY~JroqJPjr mJeL Dear Shareholders, Kk´~ ßv~JrPyJøJrmOª, Assalamu Alaikum, IJxxJuJoMIJuJATáo, I, on behalf of the Members of the Board of Directors, have IJKo Ifq∂ IJjPªr xJPg ßmJPctr kKrYJuTo¥uLr kã yPf IJoJPhr pleasure to welcome all our esteemed shareholders on this august xÿJKjf ßv~JrPyJøJrVjPT k´VKf uJAl A¿MqPr¿ KuKoPac-Fr 10o occasion of the 10th Annual General Meeting of Pragati Life mJKwtT xJiJre xnJr FA oyfL IjMÔJPj CÌ ˝JVf \JjJKóZÇ poMjJ Insurance Limited. We are delighted, encouraged and impressed KrPxJat-Fr xmM\ mOãPvJKnf FA IJrJohJ~T ˙JPj ßTJŒJjLr mJKwtT at your joyful participation in this Annual General Meeting at this xJiJre xnJ~ IJkjJPhr ˝f„°áft CkK˙Kf IJoJPhr IJjKªf, Jamuna Resort- a bosket of cosy corner. Your spontaneous participation with taking trouble in road journey manifests itself C&xJKyf S IKnnëf TPrPZÇ TîJK∂Tr hLWt kgpJ©Jr TÓ CPkãJ TPr of your confidence on the Company. Thank you all. F IjMÔJPj IJkjJPhr ˝f„°áft CkK˙Kf ßTJŒJjLr Ckr IJkjJPhr IJfìKmvõJPxrA k´oJj myj TPrÇ IJkjJPhr xTuPT ijqmJhÇ Macro economic condition of Bangladesh was considered stable as the economy did not get any major shock. Scarcity in power IJPuJYq mZPr mJÄuJPhPvr mqKÓT IgtQjKfT Im˙J ßoJaJoMKa ˙LKfvLu and energy sector coupled with rising price of essentials, the KZu F TJrPj ßp IgtQjKfT TotTJP¥ ßTJj mz irPjr ^ÅJTájL uJPV economic growth was recorded at around 6%. This has the jJAÇ Kjfq k´P~J\jL~ hsmqJKhr oNuq mOK≠r xJPg KmhMq& S \ôJuJjLr co-relation with the incremental growth in trade and business. WJaKf xP•ôS IgtQjKfT k´mOK≠ KZu k´J~ 6%Ç k´mOK≠r F Ci±t k´mjfJr Under such a situation, our company has maintained and xJPg mqmxJ S mJKeP\qr CjúKfr FTKa I∂„xŒTt gJPTÇ ßx KyxJPm achieved a strong position in all areas of business. IJoJPhr ßTJŒJjLS xJKmtT KmPmYjJ~ nJu mqmxJ TrJ xy xTu ßãP© Meanwhile, Annual Report-2009 of this Company has been fJr Im˙Jj hO| rJUPf xão yP~PZÇ dispatched to you for your kind perusal. I believe you will get a ßTJŒJjLr mJKwtT KrPkJat-2009 xh~ KmPmYjJr \jq APfJoPiq comprehensive view from the Director’s report and to assess the IJkjJPhr KjTa ßkRPZ ßhS~J yP~PZÇ IJKo IJ˙JvLu IJkjJrJ financial position of the Company. I assure you that we shall kKrYJuTo¥uLr k´KfPmhj ßgPT ßTJŒJjL xŒPTt FTKa xJoKV´T Im˙J always be with you and your investment will always be secured. I ßhUPf kJPmj FmÄ ßTJŒJjLr IJKgtT Im˙J xŒPTt oNuqJ~eS TrPf presume the performance of the business operation during the kJrPmjÇ IJKo IJkjJPhr KjÁ~fJ KhKóZ ßp IJorJ xmthJ IJkjJPhr year under review was more than satisfactory. xJPg gJTm FmÄ IJkjJPhr KmKjP~JV IJoJPhr KjTa KjrJk•J~ gJTPmÇ A brief comparison about the overall performance of the IJoJr KmvõJx KmPmYq mZPrr mqmxJK~T TJptâo xP∂Jw\jT KZuÇ Company during the year 2009 and 2008 is summarised as 2008 S 2009 xJPur ßTJŒJjLr xJoKV´T TJptTuJPkr luJlPur follows. Ckr fáujJoNuT IJPuJYjJr FTKa xÄK㬠KmmreL KjPoú ßh~J yPuJÇ • Total income of the Company was Tk.1247.69 million as against Tk. 896.18 million in the proceeding year being an • 2009 xJPur ßoJa IJ~ KZu 1,247.69 KoKu~j aJTJ pJ kNmtmfLt increase of 39.23 % mZPrr 896.18 KoKu~j aJTJr fáujJ~ 39.23% IKiTÇ • Management Expenses for the year 2009 were Tk.631.23 • 2009 xJPur mqm˙JkjJ mq~ yP~PZ 631.23 KoKu~j aJTJ, pJ KTjJ million as compared to Tk. 461.34 million in 2008 showing an 2008 xJPur 461.34 KoKu~j aJTJr fáujJ~ 36.82% IKiTÇ increase of 36.82%. The reasons for increase in the mqm˙JkjJr FA mq~ mOK≠r TJre oNuf„ IKlx nJzJ, xÄrãj S Management Expenses were mainly due to increase of office ßorJof mq~, KmhMq& FmÄ IJjMxJÄKñT, mqmxJ~ Cjú~j k´níKf UJPfr rent, maintenance & repair cost, electricity & utility expenses, mqP~r kKroJe mOK≠ kJS~JÇ Business Development expenses etc. • 2009 xJPu kKuKx V´JyTPhrPT kKrPvJKif IPgtr kKroJe KZu • Payment to policy holder in the year 2009 was Tk.186.83 186.83 KoKu~j aJTJ pJ 2008 xJPur 132.90 KoKu~j aJTJr million as
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