bgic

AUDITORS' REPORT TO THE SHAREHOLDERS OF

BANGLADESH GENERAL INSURANCE COMPANY LIMITED

We have audited the accompanying Balance Sheet of the Bangladesh General Insurance Company Limited as at 31st December, 2009 and the related Revenue Accounts as well as the Profit and Loss Account, Profit and Loss Appropriation Account and Statement of cash flow for the year then ended. These financial statements are the responsibility of the company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with BSA. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements, prepared in accordance with BAS, give a true and fair view of the state of the company’s affairs as at 31st December, 2009 and of the results of its operations and its cash flow for the year then ended and comply with the Insurance Act, 1938 the Insurance Rules, 1958 and other applicable laws and regulations.

We also report that:

i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit and made due verification thereof;

ii) In our opinion, proper books of account as required by law have been kept by the company so far as it

appeared from our examination of those books and proper returns adequate for the purposes of our audit have been received from branches not visited by us;

iii) The company’s Balance Sheet and Profit and Loss Account and its Cash Flow dealt with by the report

are in agreement with the books of account and returns; iv) The expenditure incurred was for the purposes of the company’s business; v) As per section 40-C (2) of the Insurance Act, 1938 as amended, we certify that to the best of our

knowledge and belief and according to the information and explanations given to us, all expenses of management wherever incurred and whether incurred directly or indirectly, in respect of Insurance

business of the company transacted in Bangladesh during the year under report have been duly debited to the related Revenue Accounts and the Profit and Loss Account of the Company; and

vi) As per regulation 11 of part 1 of the third schedule of the Insurance Act, 1938 as amended, we certify

that to the best of our information and as shown by its books, the Company during the year under report has not paid any person any commission in any form, outside Bangladesh in respect of any of its business re-insured abroad.

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BANGLADESH GENERAL INSURANCE COMPANY LIMITEDBALANCE SHEET AS AT 31ST DECEMBER - 2009

CAPITAL AND LIABILITIES NOTE 2009 2008

TAKA TAKA AUTHORISED CAPITAL : 500,000,000 500,000,000 5,000,000 Ordinary Shares of Tk. 100/- each

ISSUED, SUBSCRIBED AND PAID-UP CAPITAL : 2.00 417,650,400 176,970,500

41,76,504 Ordinary Share of Tk. 100 each

SHARE PREMIUM : 244,825,200 36,000,000

The amount represents Premium received @ 100 per share against Right share issue of 3,60,000 Ordinery sahres in the year 2005 36,000,000 36,000,000

Right share issue of 20,88,252 Ordinery sahres in the year 2009 208,825,200 - RESERVE OR CONTINGENCY ACCOUNTS : 134,908,999 134,408,999 Reserve for Exceptional Losses 10.00 130,708,999 130,208,999 General Reserve 2,000,000 2,000,000 Share Value Fluctuation Reserve 1,000,000 1,000,000 Dividend Equalisation Reserve 1,200,000 1,200,000

PROPOSED DIVIDEND: 18.00 41,765,040 31,854,690

10% Stock Dividend ( 1 Share for 10 Shares held ) 41,765,040 31,854,690 PROFIT AND LOSS APPROPRIATION ACCOUNT 465,296 242,647

TOTAL SHARE HOLDERS' EQUITY 839,614,935 379,476,836 BALANCE OF FUNDS & ACCOUNTS 11.00 76,283,409 54,044,237

PREMIUM DEPOSITS 12.00 8,744,462 6,907,941

ESTIMATED LIABILITY IN RESPECT OF OUTSTANDING CLAIMS WHETHER DUE OR INTIMATED 13.00 4,659,221 19,530,717 AMOUNTS DUE TO OTHER PERSONS OR BODIES

CARRYING ON INSURANCE BUSINESS 14.00 12,687,996 68,252,944 LOAN FROM BANK (SECURED): 15.00 - 75,071,724

Overdraft From Uttara Bank Ltd. 15.01 - 51,214,780 Loan from BRAC Bank Ltd. 15.02 - 23,856,944 SUNDRY CREDITORS 16.00 22,787,299 22,767,757 PROVISION FOR TAXATION 17.00 23,057,877 16,461,628

TOTAL 987,835,199 642,513,784

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BANGLADESH GENERAL INSURANCE COMPANY LIMITEDPROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST

DECEMBER, 2009 2009 2008 NOTE TAKA TAKA INTEREST, DIVIDEND

EXPENSES OF MANAGEMENT: (Not applicable to any Fund or Account) (Not applicable to any Fund or Account) # 18,587,542 17,824,938 Advertisement & Publicity 2,377,852 1,884,096 Interest received & accrued Directors' Fees 64,000 108,000 Dividend & Debenture interest Subscriptions 608,838 685,822 Audit Fees 210,000 210,000 PROFIT/(LOSS) TRANSFERRED FROM : Legal & Professional Fees 494,277 195,800 Fire Revenue Account Depreciation 9,562,950 10,401,517 Marine Revenue Account Interest on Loans 4,232,888 3,773,112 Miscellaneous Revenue Account Right Share Issue Expenses Written off 1,036,737 566,591 OTHER INCOME : BALANCE FOR THE YEAR CARRIED TO Trustee Fee APPROPRIATION ACCOUNT 56,487,689 63,045,046 Profit on Sale of Shares Profit on Sale of Tangible Fixed Assets Rental Income BGIC Tower # 75,075,231 80,869,984 PROFIT AND LOSS APPROPRIATION ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER, 2009 RESERVE FOR EXCEPTIONAL LOSSES 10.00 500,000 13,430,923 PROVISION FOR TAXATION 17.00 14,000,000 18,000,000 BALANCE BROUGHT FORWARD FROM

PREVIOUS YEAR PROPOSED DIVIDEND 18.00 41,765,040 31,854,690

Stock Dividend @ 10% per Share 41,765,040 31,854,690

BALANCE AT THE END OF THE YEAR AS SHOWN IN THE BALANCE SHEET 465,296 242,647

BALANCE FOR THE YEAR BROUGHT DOWN FROM PROFIT AND LOSS ACCOUNT

TOTAL # 56,730,336 63,528,260 EARNINGS PER SHARE 21.00 20.20 27.50 Note : All expenses of management wherever incurred, whether directly or indirectly, in respect of Fire, Marine and Miscellaneous Insurance business transacted in Bangladesh have been fully debited in the respective revenue account as expenses.

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BANGLADESH GENERAL INSURANCE COMPANY LIMITEDPROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST

DECEMBER, 2009 2009 2008 NOTE TAKA TAKA

Claims under policies less Re-insurance : Paid during the year 23,990,842 9,797,106 Balance of account at the beginning of the Year Total estimated liability in respect of Outstanding claims at the end of the period whether due or intimated 1,341,415 9,238,421 Premium Less Re-Insurance 25,332,257 19,035,527 Less : Outstanding at the end of previous year 9,238,421 4,873,097

16,093,836 14,162,430 Agency Commission 34,218,741 35,258,290 Commission on Re-Insurance ceded Commission on Re-Insurance Accepted - 188,121 Expenses of Management 41,579,857 51,763,703 Profit/(Loss) transferred to Profit and Loss Account (9,585,503) (12,907,236) Balance of account at the end of the year as shown in the Balance Sheet : Reserve for unexpired risks 11.00 23,877,840 9,720,071 TOTAL 106,184,771 98,185,379

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BANGLADESH GENERAL INSURANCE COMPANY LIMITEDMARINE INSURANCE REVENUE ACCOUNT FOR THE YEAR

ENDED 31ST DECEMBER, 2009

2009 2008 NOTE TAKA TAKA Claims under policies less Re-insurance :

Paid during the year 9,896,020 5,921,446 Balance of account at the beginning of the Year Total estimated liability in respect of Outstanding claims at the end of the year whether due or intimated 445,235 4,252,094 Premium Less Re-Insurance 10,341,255 10,173,540 Less : Outstanding at the end of previous year 4,252,094 1,970,138 6,089,161 8,203,402 Agency Commission 11,622,986 11,577,572 Commission on Re-Insurance ceded Commission on Re-Insurance Accepted - - Expenses of Management 18,729,040 22,568,309

Profit/(Loss) transferred to Profit and Loss Account 33,350,667 25,751,774

Balance of account at the end of the year as shown in the Balance Sheet : Reserve for unexpired risks 11.00 26,762,150 23,939,531 TOTAL 96,554,004 92,040,588

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BANGLADESH GENERAL INSURANCE COMPANY LIMITEDMISCELLANEOUS INSURANCE REVENUE ACCOUNT FOR

THE YEAR ENDED 31ST DECEMBER, 2009

NOTE

MOTOR

MISC.

2009 2008 TAKA TAKA

Claims under policies less Re-Insurance :

Paid during the year 16,626,498 4,187,387 20,813,885 14,695,166 Total estimated liability in respect of Outstanding claims at the end of the period whether due or intimated 1,620,735 1,251,836 2,872,571 6,040,202 18,247,233 5,439,223 23,686,456 20,735,368 Less : Outstanding at the end of previous year 4,669,765 1,370,437 6,040,202 6,752,880

13,577,468 4,068,786 17,646,254 13,982,488

Agency Commission 10,485,699 7,434,300 17,919,999 14,429,190 Commission on Re-Insurance Accepted - 88,362 88,362 176,477 Expenses of Management 12,893,623 9,028,415 21,922,038 21,332,666 Profit/(Loss) transferred to Profit and Loss Account 8,892,586 4,124,222 13,016,808 9,073,080 Balance of account at the end of year as shown in the Balance Sheet : Reserve for unexpired risks 11.00 18,347,198 7,296,221 25,643,419 20,384,635 TOTAL 64,196,574 32,040,306 96,236,880 79,378,536

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BANGLADESH GENERAL INSURANCE COMPANY LIMITEDSTATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED DECEMBER 31, 2009

Particulars Share CapitalShare

Premium

Reserve for Exceptional

Losses

General Reserve

Share Value

Fluctuation Reserve

Equalization

Balance as on January 01, 2009 176,970,500 36,000,000 130,208,999 2,000,000 1,000,000 1,200,000

Profit after Tax during the Year - - - - -

Bonus Share Distributed 31,854,700 - - - -

Appropriation made during the year

- 500,000 - -

Right Share Issued 208,825,200 208,825,200 - - -

Balance as on December 31,2009

417,650,400 244,825,200 130,708,999 2,000,000 1,000,000 1,200,000

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BANGLADESH GENERAL INSURANCE COMPANY LIMITEDCASH FLOW STATEMENT

FOR THE YEAR ENDED 31ST DECEMBER - 2009

Particulars2009 2008TAKA TAKA

CASH FLOW FROM OPERATING ACTIVITIES: Collection from Premium & Other Income 386,668,017.00 468,199,174.00 Payment for Management Expence,Re-insurance & Claims (385,770,065.00) (413,931,984.00)Income Tax Paid (7,403,751.00) (16,219,413.00)Net Cash flow from Operating Activities (6,505,799.00) 38,047,777.00 CASH FLOW FROM INVESTING ACTIVITIES : Acquisition of Fixed Assets (1,366,401.00) (302,284.00)Disposal of Fixed Assets - 120,359.00 Disposal of Investment 100,541,112.00 (36,706,301.00)Redemption/ (Investment) in Debenture 1,828,880.00 785,008.00 Investment Made (114,107,720.00) 36,739,636.00 Net cash flow from Investing Activities (13,104,129.00) 636,418.00

CASH FLOW FROM FINANCING ACTIVITIES: Issuance of Share Capital 208,825,210.00 26,357,300.00 Share Premium Received 208,825,200.00 Divided Paid - (26,357,310.00)Increase/(Decrease) in loan from Banks (Secured) (75,071,724.00) 3,154,691.00

Net cash flow from Financing Activities 342,578,686.00 3,154,681.00

Increase/(Decrease) in cash and Bank Balances (A+B+C) 322,968,758.00 41,838,876.00

Cash and Bank Balances at 1 January, 2009 358,524,747.00 316,685,871.00 Cash and Bank Balances at 31st December, 2009 681,493,505.00 358,524,747.00

Net Operating Cash Flow per Share (NOCFPS) (3.09) 23.23

Number of share used to compute NOCFPS 2,102,999 1,637,919

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BANGLADESH GENERAL INSURANCE COMPANY LIMITEDCLASSIFIED SUMMARY OF ASSETS

AS AT 31ST DECEMBER - 2009FORM "A A"

Amount in Taka

Sl. No. Class of Assets

Book Value 2009

Book Value

2008

1 National Investment Bonds 4,500,000 4,500,000

2 Debentures (Market Value Tk. 37,05,160.00) 3,705,160 5,534,032

3 Shares (Market value Tk. 10,86,42,7241.00) 87,836,790 62,716,254

4 Cash & Bank Balances 681,493,505 358,524,747

5 Stamps in hand 547,665 1,045,450

6 Accrued Interest 33,360,167 21,901,623

7 Sundry Debtors 9,268,329 10,947,710

8 Right Share Issue Expenses 4,146,948 -

9 Tangible Fixed Assets 6,509,530 6,306,927

10 Land at cost 27,590,217 27,590,217

11 Building at cost 75,592,365 83,991,517

12 Stationery in hand 1,180,695 579,434

13 Amounts due from other persons or bodies carrying on insurance business

52,103,828 58,875,873 Total 987,835,199 642,513,784

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BANGLADESH GENERAL INSURANCE COMPANY LIMITEDCLASSIFIED SUMMARY OF ASSETS

AS AT 31ST DECEMBER - 2009

BANGLADESH GENERAL INSURANCE COMPANY LTD.NOTES TO THE ACCOUNTS

FOR THE YEAR ENDING DECEMBER 31, 2009

1.00 INTRODUCTION:

"Bangladesh General Insurance Company Limited was incorporated as a public limited comapny in Bangladesh on November 01, 1984 under the Companies Act, 1913 and commenced it's operation

on July 29, 1985."

The Company is listed in both Dhaka and Chittagong Stock Exchange as a Publicly Traded Company.

1.01 NATURE OF BUSINESS:

The main objectives of the company are to carry on all kinds of insurance, guarantee and indemnity business other than life insurance business.

1.02 SIGNIFICANT ACCOUNTING POLICIES AND OTHER RELEVENT INFORMATION:

1.03

"The Company has adopted relevent International Accounting Standards as were adopted in Bangladesh under the tittle Bangladesh Accounting Standards (BAS) with reference to disclosures of accounting policies notes to the financial statements, valuation of investment such as long term and current investments."

1.04 Basis of Accounting:

The accounts have been prepared on a going concern basis under Generally Accepted Accounting Principles (GAAP) in historical cost convention.

1.05 Basis of Presentation:

(a) The balance sheet has been prepared in accordance with the regulations as contained in part I of the First Schedule and as per Form ‘A’ as set forth in part II of that Schedule and the Revenue Account of each class of business has been prepared in accordance with the regulations as contained in part I of the Third Schedule and as per Form ‘F’ as set forth in part II of that Schedule of the Insurance Act, 1938.

(b) Accounts have been prepared following consistant basis. (c) Figures have been rounded off to the nearest Taka. (d) Last year’s figures have been re-arranged wherever necessary to conform to current year’s presentation.

1.06

Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation. Fully depreciated assets are carried in the books at nominal value of Tk. 1.00 for the purpose of identification.

1.07

Depreciation on Fixed Assets:

Depreciation on Tangible Fixed Assets are charged on diminishing balance method at rates varying from 10% to 20% depending on the estimated useful life of the Assets. No depreciation has been charged on Land. Depreciation on additions to Fixed Assets are charged for the full year irrespective of the date of acquisition of Assets and no depreciation is charged in the year of disposal of assets.

1.08

Public Sector Business:

The Company's share of Public Sector business for the period from 1st July, 2008 to 30th June, 2009 received from Sadharan Bima Corporation has been incorporated in the Company's account for the year ended 31st December, 2009. This system of accounting of public sector business is being followed consistently.

Premium Income:

1.09

The total amount of premium earned on various classes of insurance business underwritten during the year, the gross amount of premium earned against various policies, the amount of re-insurance premium due to Sadharan Bima Corporation, the amount of re-insurance commission earned and the amount of claims less re-insurance settled during the year have all beenthe books of account of the company and while preparing the final statements of accounts, the effect of re-insurance accepted and re-insurance ceded as well as the effect of total estimated liabilities in respect of outstanding claims at the end of the year whether due or intimated have also been duly reflected in the accounts in order to arrive at the net underwritting profit for the year.

1.10 Interest on Statutory and Other Investments:

Interest accrued on statutory investment of Tk. 45.00 lacs lying with Bangladesh Bank in the form of National Investment Bond (NIB) and interest received from banks on STD and FDR accounts have been duly credited to the Profit and Loss Account.

1.11 Loss or Gain on Sale of Shares and Debentures:

Loss or Gain on sale of shares and debentures and dividend income during the year have been shown in the Profit and Loss Account and the tax relief as well as the concession rate of tax as availed under the existing income tax law have been given effect in the accounts.

1.12 Management Expenses:

Management expenses as charged to Revenue Accounts and amount of Tk. 82,230,935 is approximately 22.77% of gross premium of Tk. 361,188,348. The expenses have been apportioned 50.56% to Fire, 22.78% to Marine and 26.66% to Miscellaneous business as per management decision.

1.13 Provision for Unexpired Risks:

Before arriving at the surplus of each class of business necessary provision for un-expired risk have been created at the rate of 40% on all business except on Marine Hull business for which the provision was made @ 100% of the total for the year 2009.

1.14 Reserve for Exceptional Loss:

Reserve for Exceptional Losses as appropriated out of current year's profit before tax amounts to Tk.5,00,000.

1.15 Outstanding Premium:

The outstanding premium appearing in the accounts represents only the amount which relates to the accounting period in the fprm of cash and cheques in hand in line with the system followed by the company.

1.16Going Concern:

The financial statements of the entity have been prepared by the management considering the entity as a going concern and the entity is optimistic to continue its business operation for the foreseeable future. More so, the company has earned a good amount of profit and in line with that the company has proposed for payment of Stock dividend @ 10% during the year under audit in the form of bonus shares as against the payment of dividend @ 18% (bonus shares) in the last year.

1.17 Use of Estimate:

Preparation of financial statements in conformity with International Accounting Standards (IAS) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contigent assets and liabilities if any at the date of the financial statements, and revenues and expenses during the year reported. Actual result could differ from those estimates. Estimates are used in accounting for certain items such as depreciation, outstanding claims, taxes reserves etc.

1.18

Basis of recognition of Income in respect of Premium Deposits:

Amounts received against Cover notes, which have not been converted into policy are recognisedmonths in accordance with the Controller of Insurance Circular.

1.19Loan from Banks:

Bank loan has been fully repaid during the year.

1.20 Investment in Shares and Debenture:

The company has invested total amount of Tk. 96,041,950 in the share market which have been valued at cost and presented in the financial statements attatched to the report.

1.21 Contingent Liabilities:

The Company has a total amount of Tk. 21,467,182 towards contigent liabilities relates gurantee and other liabilities with the different bodies/parties as on the date of the Balance Sheet.

1.22

General:

(i). Provision for Income Tax has been made in accordance with the best estimate of the management based on the prevailing Income Tax Law.

(ii). During the year interest on investment in FDR, National Investment Bonds (NIB) and Debentures have been accounted for as income on accrual basis.

2.00 ISSUED, SUBSCRIBED AND PAID UP CAPITAL :

This is made up as follows :

600,000 Ordinary shares of Tk. 100/- each called and paid up in full.

120,000 Ordinary shares of Tk. 100/- each fully paid up as bonus shares issued during the year 1997.



98,532 Ordinary shares of Tk. 100/- each fully paid up as bonus shares issued for the year 2007.



RIGHT SHARES :

360,000 Ordinary Shares of Tk. 100/- each as Right Shares issued during the year 2005.

2,088,252 Ordinary Shares of Tk. 100/- each as Right Shares issued during the year 2009.

(a) Category of Share Holders :

Category of Shareholders Number of Share

Sponsor Directors : Mr. Towhid Samad Mr. ASM Shahidullah Khan Mr. Sayeed Hossain Chowdhury Mr. Salim Bhuiyan Mr. FMAB Siddique Mr. Ragib Ali Mr. Mosahid Ali Mr. A Sattar Mr. Salim Ahmed Mr. A. Z Humayun

Sub Total : Public Directors : Mr. Saleh Ahmed Mr. Aftab Alam Mr. Mahmud Hasan Mr. Noor Alam Mr. Sohail Humayun

Sub Total :

Independent Director : Mr. Mozibar Rahman

Sub Total :

Financial Institutions: ICB Financial Institutions

Foreign Investors General Public 2,201,998

Sub Total : 3,260,041 GRAND TOTAL: 4,176,504 (b) Classification of Shareholders by holdings:

Class interval NUMBER OF SHARES NUMBER OF SHARE HOLDERS

Less than 500 shares 870,484501 - 5000 658,7345001 - 10000 226,32210001 - 20000 315,19020001 - 40000 543,74840001 - Above 1,562,026

TOTAL : 4,176,504

3.00 INVESTMENTS AT COST :


3.01 Shares & Debentures Market Price Amount (Tk.)

Investment in shares 108,642,241

Investment in debentures 3,705,160

112,347,401

3.02 National Investment Bonds(NIB) at cost

Total :

4.00 INTEREST, DIVIDEND & RENT OUTSTANDING:

This is made up as follows : Accrued Interest on FDRs Accrued Interest on Debenture Accrued Interest on NIB

Total :

AMOUNTS DUE FROM OTHER PERSONS OR

5.00

BODIES CARRYING ON INSURANCE BUSINESS:

These represent the amount receivable from insurance companies on account of co-insurance premium and claim at December 31, 2009. The balances remain unconfirmed.


Amount due from SBC

Co-Insurance Premium receivable

Co-Insurance Claim recoverable

Total :

6.00 SUNDRY DEBTORS :

This is made up as follows: Advance Rent Advances Salary Advances for Car Lease Other Advances

Security deposit House Building Loans to Staff

7.00 RIGHT SHARE ISSUE EXPENSES :

Total Right Share Issue Expenses amounts to Tk. 5,183,685. This amount is being written off equally over five years.

Total Right Share Issue Expenses.

Less: Written off in 2009

Balance Carried forward

8.00 CASH AND BANK BALANCES :

This is made up as follows:

8.01 Fixed Deposits with Banks STD & Current Accounts with Banks

8.02 8.03 Cash & Cheques in hand

9.00 TANGIBLE FIXED ASSETS (AT COST LESS DEPRECIATION) :

Particulars

Furniture, Fixture & Fittings Electric Equipments Motor & Other Vehicles

Cost:

Balance as on 01.01.2009 7,841,412 5,230,225 6,822,165

Additions during the year 303,724 280,997 119,500

Disposal during the year - -

Balance as on 31.12.2009 8,145,136 5,511,222 6,941,665

Depreciation:

Balance as on 01.01.2009 5,914,387 4,228,391 5,170,478

Charge during the year 223,075 192,425 427,814

Disposal during the year -

Balance as on 31.12.09 6,137,462 4,420,816 5,598,292

Written down value as at December 31, 2009 2,007,674 1,090,406 1,343,373

Balance as on 31.12.2008 1,927,025 1,001,834 1,651,687

9.01 LAND (FREE HOLD) AT COST :

The above amount represents the value of the remaining 7.5875 kathas of land valued at cost amounting to Tk. 27,590,217 in the name of the Company.

10.00 RESERVE FOR EXCEPTIONAL LOSSES : This is made up as follows :

Opening balance

Addition during the year

Closing balance

An amount of Tk.5,00,000 has been set aside during the year to meet exceptional losses as per rules for computation of profits and gains as prescribed in the 4th schedule of the Income Tax ordinance,1984.

11.00 BALANCE OF FUNDS & ACCOUNTS : This amount is made up as follows :

Fire Insurance Fund Account

Marine Insurance Fund Account

Miscellaneous Insurance Fund Account

Balance of fund and accounts / Reserve for unexpired risks has been made on premium income at the following rates:

Fire 40% Marine Cargo 40% Marine Hull & Aviation Hull 100% Motor & Miscellaneous 40%

12.00 PREMIUM DEPOSITS:

Balance on this account represents premium received against cover notes for which risks had not been initiated within

13.00 ESTIMATED LIABILITY IN RESPECT OF OUTSTANDING CLAIMS WHETHER DUE OR INTIMATED :

This amount is made up as follows :

Fire

Marine

Miscellaneous

All the claims of which the management is aware of as per intimation up to the year end have been taken into consideration while estimating this net liability in respect of outstanding claims.

14.00

AMOUNTS DUE TO OTHER PERSONS OR BODIES CARRYING ON INSURANCE BUSINESS:

This represents the amount payable to Sadharan Bima Corporation and other re-insurer and private sector insurance companies on account of re-insurance and co-insurance premium at December 31, 2009.


Re-insurance payable to Sadharan Bima Corporation

Co-insurance premium payable

Total

15.00 LOAN FROM BANKS (SECURED):


15.01 OVERDRAFT FROM UTTARA BANK LTD. :

The overdraft from Uttara Bank Ltd. Banijya Shakaha, Dilkusha, Dhaka carries interest @ 11% per annum secured against Lien of FDRs. Bank loan has been fully repaid during the year.

15.02 LOAN FROM BRAC BANK LTD. :

The loan from BRAC Bank Ltd. Gulshan Branch, Dhaka carries interest @ 12.50% per annum secured against lien of FDRs. Bank loan has been fully repaid during the year

16.00 SUNDRY CREDITORS: This is made up as follows :

Creditors for Expenses

Unpaid Dividend

Trade & Other Creditors

17.00 PROVISION FOR TAXATION:


Opening Balance

Add : Provision for the year

Less: Payments/adjustment during the year

Less: Previous years Tax Paid

Closing Balance

18.00 PROPOSED DIVIDEND :

The Board of Directors has recommend Stock Dividend @ 10% per ordinary share (10 shares for 100 shares held) on the paid up capital of Tk. 417,650,400.00 The rate of dividend in the last year was Stock Dividend @18% per ordinary share (18 shares for 100 shares held) on the paid of capital of Tk. 176,970,500.00.

19.00 INTEREST RECEIVED & ACCRUED: This is made up as follows:

Interest on National Investment Bonds & Others

Interest on FDRs

Interest on STD Accounts

Total :

20.00 DIVIDEND & DEBENTURE INTEREST: This is made up as follows:

Dividend on Shares (Gross)

Interest on Debentures (Gross)

21.00 EARNING PER SHARE:

Earnings per share as shown in the face of the Profit and Loss Account is calculated in accordinace with Bangladesh Accounting Standard 33: "Earning Per Share".

This is made up as follows:

Net Profit Before Tax

Number of Share (Weighted Average Number)

Earning Per Share Before Tax

Net Profit After Tax

Number of Share (Weighted Average Number)

Earning Per Share After Tax

22.00 NUMBER OF EMPLOYEES DRAWING ANNUAL REMUNERATION BELOW AND ABOVE TK. 36,000.00

The number of permanent employees engaged for the whole year who received total annual remuneration of Tk. 36,000.00 and above was 320 and below 36,000 p.a. is none.

23.00 CONTINGENT LIABILITIES

There are contingent liabilities aggregating to Tk. 21,467,182 for Guarantees and Other liabilities.

24.00 EXPENSES INCURRED / EARNED IN FOREIGN CURRENCY :

The Company did not incur any expenses nor earned any income in foreign currency on account of royalty, technical expert, professional Advisory fee and interest, etc.

25.00 COMMITMENT ON CAPITAL EXPENDITURE : There is no Capital Expenditure commitment entered into by the Company during the year under audit.

26.00

NET ASSETS VALUE:

The offer price of the common stock of BGIC has been determined on the basis of net assets value, the break up is given below: A. Assets:

Investments at Cost

Interest, Dividend & Rent Outstanding

Amount due from Other Persons or Bodies Carrying on Insurance Business

Sundry Debtors

Right Share Issue Expense

Cash and Bank Balance

Other Accounts

Total Assets

B. Liabilities:

Balance of Funds & Accounts

Premium Deposits

Estimated Liabilities in Respect of Outstanding Claims

Whether Due or Intimated Amount due to Other Persons or Bodies Carrying on Insurance Business

Loan from Banks (secured)

Sundry Creditors

Provision for Taxation

Total Liabilities

Net Assets (A-B)

Number of Weighted Average Shares Outstanding During the Year

Book Value Per Share

27.00 RELATED PARTY TRANSACTIONS :

There is no related party transaction during the year.

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ABOUT BGIC

Established in 1985 as the first general insurance company in private sector, BGIC has since developed substantially with all the strengths and details prudently essential of an insurance company.

FOUNDER

Late Mr. M. A. Samad founded BGIC in 1984 soon after he retired as Managing Director of Jiban Bima Corporation.

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CHAIRMAN

The Chairman of BGIC, Mr. Towhid Samad, a well-known businessman and social personality is an Economics (Hons.) graduate of Dhaka University and a Master’s degree holder in Economics from Karachi University.

An innovative industrialist in the hosiery sector, he is a founder director of BGIC. He is also the founder trustee and currently the chairman of the Education, Scientific Technology and cultural Development Trust, which is the founder of the Independent University, Bangladesh. Mr. Samad was also elected and had served as the President of Dhaka Club Ltd.

MANAGEMENT

Managing Director:

Mr. A. K. Azizul Huq Chaudhuri is a widely recognised insurance expert at both home & abroad. He obtained Fellowship (FCII) from the world famous Chartered Insurance Institute of London and also did his Diploma in Office Management from Glasgow University.Apart from this he was trained on insurance and reinsurance for long three years in Europe under the “Overseas Students Training Scholarship” of the Chartered Insurance Institute of London. During the active professional career in insurance for over 3 decades, Mr. Chaudhuri was General Manager and Managing Director of Sadharan Bima Corporation and Director of the Bangladesh Insurance Academy. He is also a Fellow of the Federation of the Insurance Institute of India (FFII) and an overseas Fellow of the Economic Development Institute of the

World Bank, Washington. A distinguished insurance expert of international repute Mr. Chaudhuri represented Bangladesh in various international insurance forums. He is a prolific writer and the author of an insurance text book. Mr. Chaudhuri is a recognised insurance expert under UNDP.

Additional Managing Directors (Operations):

Additional Managing Directors (Operations) Mr. Ahmed Saifuddin Chowdhury started his career with BGIC from 1986 just immediately after completing his post graduate studies. He joined BGIC as a junior officer at Head Office, Dhaka in 1987. By dint of his merit, talent and efficiency he has gathered vast knowledge and experience on Underwriting, Accounts & Finance, Administration, Branch Control, Re-insurance, Claim and Marketing. He has excellent social affiliation. Before joining as Additional Managing Director (Operations), he was working in BGIC's Zonal Office, Chittagong as Deputy Managing Director. He is an M.Com in Management with Honours from Chittagong University and MBA from Southern University, Bangladesh.

Additional Managing Director (Marketing):

BGIC’s Addtitional Managing Director (Marketing) Mr. Kazi Mokaddas Masum joined the Company as a Junior Development Officer way back in 1986 around the same time when BGIC started operating as the first General Insurance Company in the private sector. By dint of his own merit he has risen to such a coveted position of the Company.He is an M. Sc. in Physics with Honours from Rajshahi University.

MANAGEMENT

Consultants:

BGIC's Management has been enriched with the association of two highly acclaimed experts. They are Mr. Anisuz Zaman Chowdhury and Mr. Khorshed Alam. . Mr. Anisuz Zaman Chowdhury had his C.A. degree from London in 1964 and is admitted as an Associate Member (ACA) of the Institute of Chartered Accountants in England & Wales. He is also admitted as F.C.A., a Fellow of the Institute of Chartered Accountants in England & Wales in 1975. He has served a number of internationally reputed Chartered Accounts Firms and is widely experienced in investments and in share market. Mr. Khorshed Alam is a retired Senior Civil Servant and a former Governor of Bangladesh Bank. He was also Finance Secretary, Govt. of the Peoples Republic of Bangladesh. Mr. Khorshed Alam is widely known in the business circle and respected.

Auditors: M/s. Habib Sarwar & Co. Chartered Accountants Eastern Commercial Complex 73, Kakrail, Dhaka-1000

MANAGEMENT Chairman Mr. Towhid Samad

Managing Director Mr. A. K. Azizul Haq chaudhuri, FCII ( London)

Additional Managing Director ( Operations) & Company Secretary

Mr. Ahmed Saifuddin Chowdhury

Additional Managing Director ( Marketing) Mr. K. M. MasumPrincipal Adviser Mr. Khorsed AlamFinancial Consultant Mr. Anisuzzaman Chowdhury, FCAGeneral Manager & CFO Mr. Chowdhury Md. Abu SayeadGeneral Manager ( Underwriting) Mr. Md. Imral RoufGeneral Manager ( Claims & Re-Insurance) Ms. Rashida Banu.General Manager ( Admin & Personnel) Mr. Tapan MahmudDeputy General Manager( Share & Investment):

Mr. Md. Mustafa

Deputy General Manager ( Development & Co-Ordination)

Mr. Md. Eqbal Ali

Deputy General Manager ( Lagal Affairs & Estate)

Mr. K. M. Azimullah

Deputy General Manager ( Internal Audit) Mr. Md. Manik MiahDeputy General Manager ( Re-Insurance) Ms. Nagma HossainDeputy General Manager ( Branch Control) Mr. Md. Abdul Mazid Khan

FOUNDER

Late Mr. M. A. Samad founded BGIC in 1984 soon after he retired as Managing Director of Jiban Bima

Corporation. He became BGIC's first Managing Director. In addition to this, in 1990, he was elected the Chairman of the Board of Directors of BGIC. He served the Company as Chairman cum Managing Director until

July 2003 when he voluntarily retired as Managing Director and continued as the Chairman until his death

in 2005.

Mr. Samad was born in an distinguished family of Sylhet in 1923. He had an exceptional academic career which culminated at his graduation with honors from the renowned Presidency College, Kolkata, India.

During his illustrious career in insurance stretching into six decades, Mr. M A Samad worked as the Chief Agent and Manager for East Pakistan for Commercial Union Insurance Company United Kingdom, as Life Manager, Great Eastern Insurance Company, General Manager, Federal Life General Insurance Company, Chairman, Surma Jiban Bima Corporation, and

Managing Director, Jiban Bima Corporation.

Mr. Samad's dedication to Insurance perhaps mostly reflected in his never-ending desire to impart Insurance education. In this regard, he attended Chartered Insurance Institute Training Courses in London; visited many important Insurance Training Institutions and Insurance Departments of different Universities in UK and USA under UNDP Fellowship Program; attended Seminar on Insurance Administration at Manila under UNCTAD/UNDP Project, attended many Annual Conference of the Federation of Insurance Institutes of India.

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BGIC's Background

Bangladesh general insurance company Ltd. or "BGIC Ltd". is the first general insurance company in Bangladesh in the private sector. BGIC was incorporated as a public limited company and started business on 29 july, 1985 with an authorised capital of Tk. 100 million divided into 1,000,000 ordinary shares of Tk. 100 each. The company runs the business operation under the supervision of board of Director and legal frame work of the insurance Act, 1938 and the insurance rules,1958 as a amended from time to time. Its initial paid up capital was Tk 30 million. In May 1989, the company's paid up capital was increased to Tk. 60 million by offering Tk.30 million worth of share for public subscription, the paidup capital was increased to Tk. 72 million in 1998, and by December 2008, BGIC's paid up capital stood at Tk. 176.97 million. BGIC is listed with both Dhaka and chittagong stock exchanges. In december 2008, the numbers of shareholders of the company was 7,708, who held 1,769,705 shares. BGIC has since developed sbustantially with all the strengths and details prudently essential of an insurance company. It is primarily sraffed with professionals of longest experience, qualified insurance technocrats of highest order of international repute and a team of highly educated and skilled personnel of commendable status. The equity structure of the company was carefully selected, not only for the financial benefit, but to support the growth of a dynamic company with the goal a major player both in the domestic and international insurance markets. The company ownership is prudently distributed to sponsor Director 22.94%, public Director 1.64%, Institutions 14.67% and 60.75% General public shareholders. BGIC's Vision To transform the company into an ideal insurance company, with larger growing equity base, that will provide more opprotunities and

options for utilization of funds in a prudent manner and help to increase profitability through economy of scale, better resource mobilization and reduction in operational costs, to provide better services to our clients and policy holders and to promote the confidence of both shareholders and policy holders.

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BGIC's Mission

To provide excellent

services, best risk management, prompt settlement of claims.To expand nation wide branch network of the company, induct and build, a sound and dynamic team.To ensure good governance, for sustainable and equitalbe and equitable growth and prosperity of the company.To provide more benefits to staffs, share holders and policy holders.

BGIC's Objectives

Make affordable insurance accessible to allKeep customer as focal point for all operationsAdopt best inernational practices in claims, underwriting and policy servicingBe the most innovative in product developmentEstablish pan bangladesh presence

BGIC's Value propositions Risk Evaluation: Provide expertise in risk evaluation and risk mitigation leading to the most appropriate risk transfer solution. Post Sales services: Differentiate on service parameters by ensuring prompt and correct documentation and fair, transparent and speedy claims settlement. New Products: Introduce innovative products suited to specific market segments.

BGIC's Value propositions Training: Extensive teaining to the employees involved in underwriting and claims to ensure availability if a varied experienced and competent team to cater to the customer needs. Technology: Use IT as a means to provide for a far superior customer experience in terms of access, speed and simplicity. Reinsurance Banking: Apart from using capacity of the national reinsurer, establish relationships with the best reinsurers across the world. BGIC's Foundation: We Believe in..... Principles: To guide and counsel us in everything we do through knowledge management Trust: To forge stronger, longer-lasting relationships with the customers Integrity: In our dealings with customers and business partners Excellence: In everything we do for the betterment of our customers and business partners Professionalism: In serving customers and working with business partners Innovativeness: To continually provide relevant products and services with changing business environment

INSURANCE SERVICES

FIRE AND ALLIED INSURANCEINDUSTRIAL ALL RISK INCLUDING BUSINESS INTEERUPTION INSURANCEBURGLARY AND HOUSEBREAKINGLOSS OF PROFIT/ BUSINESS INTERRUPTION INSURANCEMARINE CARGO INSURANCEMARINE HULL INSURANCE MOTOR VEHICLE INSURANCEALL RISK INSURANCE CASH-IN-TRANSIT INSURANCECASH-IN-SAFE INSURANCE

CASH-ON-COUNTER INSURANCEWORKMEN’S COMPENSATION INSURANCEFIDELITY GUARANTEE INSURANCEPRODUCT LIABILITY INSURANCEPUBLIC LIABILITY INSURANCECOMPREHENSIVE GENERAL LIABILITY INSURANCEPERSONAL ACCIDENT INSURANCE PEOPLES PERSONAL ACCIDENT INSURANCE OVERSEAS MEDICLAIM INSURANCEOVERSEAS MEDICLAIM (CORPORATE FREQUENT TRAVEL) INSURANCEERECTION ALL RISK INSURANCECONTRACTORS ALL RISK INSURANCEMACHINERY BREAKDOWN INSURANCEBOILER AND PRESSURE PLANT INSURANCEDETERIORATION OF STOCK IN COLD STORAGE INSURANCEELECTRICAL EQUIPMENT INSURANCECATTLE AND LIVESTOCK INSURANCEHEALTH INSURANCE

BRANCH NETWORK

Dhaka Zonal Office 42, Dilkusha C/A, Dhaka-1000, Bangladesh.

Phone: 9564213, 9550379, 9564731, 9555073-74, 9563056, 9566125.

Mohakhali Branch 94, Mohakhali C/A, dhaka. Tel: 02-9886883 Cell: 01818012416.

Uttara Branch House# 2A, Rd# 2B, Sonargaon Janapath, Uttara, dhaka - 1230. Phone: 02-7911772.

Chittagong Zonal Office Jiban Bima Bhaban, 56, Agrabad C/A, Chittagong, Phone: 721527, 714853, [email protected]

Khatungonj Branch Ambia Plaza, 11, Bandel Road, Bakshir Hat, Ctg, Phone:

619807

Jubilee Road Branch Khawja Tools Market, 188/A, Jubilee Road, Chittagong, Phone: 616034, [email protected]

Khulna Zonal Office 6, P. C. Roy Road, Khulna, Phone: 724853

Kushtia Branch Lovely Tower, 55/1, Serajuddoula Rd, Khushia, Phone: 62077

Jessore Branch 36, M. K. Road, Jessore, Phone: 66495

Imamgonj Branch 38, Mitford Road, Dhaka, Phone: 7319723

Narayangonj Branch 16/2, S. M. Maleh Road, Tanbazar, Narayangonj, Phone: 7632544

Sylhet Branch Modhu Ban Super Market (4th Floor), Bandar Bazar, Sylhet, Phone: 714513

Bogra Branch Jautala Pukur Par, Bogra, Phone: 66460, 51364

Rangpur Branch Chowdhury Mansion, 22, Central Road, Rangpur, Phone: 63725

Feni Branch Trunk Road, Feni, Phone: 74767

Rajshahi Branch Saheb Bazar, Sonar Patty, Rajshahi, Phone: 774367

Mymensingh Branch B.M.A. Bhaban, Abul Monsur Road, Mymensingh, Phone: 54092

Barisal Branch Air Arked Bhaban, 95, Sadar Road, Barisal, Phone: 52917

Sreemangal Branch Masjid Building, College Road, Sreemangal, Phone: 71089, 71090

Dinajpur Branch Lok Bhaban, Munshi Para, Dinajpur, Phone: 63480

Naogaon Branch Chakdev, Sadar Road, Naogaon, Phone: 62650

Narsingdi Branch Madhabdi Bazar, Narsingdi, Phone: 01199088922, 01199004339

Saidpur Branch Amin Plaza (1st Floor), Shid Dr. Zikrul Huq Rd, Saidpur, Phone: 2822

Comilla Branch Suravi Mansion, Nazrul Islam Road, Kandirpar, Comilla, Phone: 62859, 01711113737

Chandpur Branch Sheikh Mansion, Comilla Road, Chandpur, Phone: 65635

BGIC Major Client List

National Organizations

Abul Khair Group Meridion GroupBRAC Bank Ltd. Monno Group of Industries.B. R. B. Group. Mohamodi GroupDoreen Power Generation of Systems Ltd.

Mongla Cement Factory

East West Industrial Park Nassa GroupEnvoy Group Nasir Group of Industries Ltd.Energypac Confidence Power Venture Ltd.

One Bank

Elite Chemical Industries PHP Group

Evince Group Rahimafrooz (BD) Ltd.Far Ciramic Indts Ltd. Robin Tex Ltd.Globe Janakantha Shipa Paribar Standard Chartered BankHaque & Company Ltd. Shanta GroupH.R.C. Group Southeast BankHSBC Bank Uttara Group Indt.Jaya Group Urmi Group

Multi-NationalsAsia Plastic Bangladesh Ltd. Organon Bangladesh Ltd.Bloosm Textile mills Ltd. Pacific Telecom Bangladesh Ltd.British American Tobacco (BD) Ltd. Renata International Ltd.BSRM Ltd. Shine Fashion Ltd.Cellular Mobile (Pvt.) Ltd. Singer Bangladesh Ltd.GEC(BD) Ltd. Sonargaon & Sheraton Hotel

InternationalHomebound Ltd. TM International Ltd.L.M. Ericsson BD. Ltd. (Sonny) Unilever (BD) Ltd.M. Z. Mobile Zone Woori Bank Ltd.

More Client List

BGIC Major Client List

Multi-Nationals

Berger Paints Ltd. Reckitt Benckiser (Bangladesh) Ltd.Fu-Wang Ceramic Industry Sgwicus (Bangladesh) Ltd.Mitsubishi Corporation. Shimizu Corporation.

Foreign Missions

Embassy of the USSR, International Monetary FundEmbassy of the People's Republic of China,

The Consulate of the Republic of Singapore.

Embassy of the Republic of Korea, The Polish People's Republic of Poland

Embassy of the Federal Republic of Germany

World Bank

Embassy of the Royal Kingdom of Saudi Arabia

Sadharan Bima Corporation

Sadharan Bima Sadan 33, Dilkusha C/A

Dhaka Bangladesh. Tel: 9566108-9, 9566105-6

Website : Sadharan Bima Corporation

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Agrani Insurance Company Limited.

Agrani Insurance Company Ltd. Head Office

Moon Mension (6th floor) 12 Dilkusha C/A,

Dhaka - 1000, Bangladesh.

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Asia Pacific General Insurance Company Ltd.

Head Office Green White Bhaban,

28, BB Avenue, Dhaka-1000 , Bangladesh.

Tel: 88-02-9551388, 9555338, 7160745 Fax: +88-02-9558125

E-mail: apgic@ bdcom.com Website :

www.apgicl.com

Bangladesh Co-operative General Insurance Ltd.

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Bangladesh General Insurance Co. Ltd.

Head Office : Bangladesh General Insurance Co. Ltd.

42, Dilkusha C/A Motijheel Dhaka - 1000, Bangladesh.

Tel. : 9555073-4, 9563056-8 Fax. : +88-02-9564212

Email : [email protected]

[email protected] [email protected]

Bangladesh General Insurance Co. Ltd. Established in 1985 as

the first general insurance company in private sector. BGIC

has dedicated professional management team supported by

highly trained staff who can offer sound and reliable advice on risk

management

INSURANCE SERVICES :

Web page : www.bgicinsure.com

Fire and Allied Insurance. Industrial all risk,

including business interruption Insurance.

Read more Insurance services of Bangladesh general insurance

company.

Bangladesh National Insurance Co. Ltd.

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Central Insurance Co. Ltd. - -City General Insurance Co.

Ltd- -

Eastern Insurance Co. Ltd - -Federal Insurance Co. Ltd - -

Green Delta Insurance Co. Ltd

Head Office: Hadi Mansion (4th floor)

2, Dilkusha C/A,Dhaka-1000 Bangladesh.

PABX: 9560005,9567760-62 FAX: 9562345

Email: [email protected] Website :

Green Delta Insurance Co. Ltd

-

Janata Insurance Co. Ltd - -Karnafully Insurance Co.

Ltd- -

Meghna Insurance Co. Ltd - -Mercantile Insurance Co.

Ltd- -

Nitol Insurance Co. Ltd.

Corporate Office : Nitol Insurance Co. Ltd. Nitol Centre (5th Floor)

71, Mohakhali C/A, Dhaka-1212.

Tel. : 8857247-8, 8853084, 8834321 Fax. : 8802-8826184

Email : nitolins[at]bol-online.com, info[at]nitolinsurance.com

Web page : www.nitolinsurance.com

Nitol Insurance Co. Ltd. is a Public Limited General Insurance Company established in the year

1999 to transact General Insurance Business in the private

sector.

Fire Insurance ( damage of properties , machineries

etc. ) Marine Insurance Motor Insurance

Miscellaneous Insurance ( ).

Northern General Insurance Co. Ltd

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Paramount Insurance Company Ltd.

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People's Insurance Co. Ltd - -Phoenix Insurance Co. Ltd - -

Pioneer Insurance Co. Ltd

Head Office Symphony (5th Floor)

Plot # SE(F)9, Road # 142 South Avenue, Gulshan-1 Dhaka-1212 , Bangladesh.

Tel: 8816579, 8816793, 8817512, 8816561

Fax: +88-02-8817234, 8817264 E-mail: piclho[at]gmail.com

Website : www.pioneerinsurancebd.com

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Prime Insurance Co. Ltd - -Progoti General Insurance

Co. Ltd- -

Provati Insurance Co. Ltd - -Purabi General Insurance

Co. Ltd- -

Reliance Insurance Co. Ltd - -Rupali Insurance Co. Ltd - -

United Insurance Co. Ltd

Head Office United Insurance Co. Ltd.

Camellia House 22 Kazi Nazrul Islam Avenue

Dhaka 1000, Bangladesh. Phone : 8619336-8, 9667999, 8631447

Fax : 880-2-8622330 Email : [email protected]

Website : United Insurance Co. Ltd

-

Banglapedia in Bengali Bangladesh General Insurance Company Ltd (BGIC) the first ever general INSURANCE company in Bangladesh to come up in the private sector under the scheme offered by the government of Bangladesh by virtue of the Insurance (Amendment) Ordinance 1984, and the Insurance Corporations (Amendment) Ordinance 1984. BGIC was incorporated as a public limited company under the COMPANIES ACT 1913 and started business on 29 July 1985 with an authorised capital of Tk 100 million divided into 1,000,000 ordinary shares of Tk 100 each. Its initial paid up capital was Tk 30 million, which rose to Tk 72 million in 1999. In May 1989, the company offered Tk 30 million for public subscription. It is listed with both Dhaka and Chittagong STOCK EXCHANGE s. In December 1999, the number of shareholders of the company was 4,370, who held 720,000 shares.

The company was established for carrying out all types of general insurance business. It underwrites risks involved in trade and properties and thus provides their security through insurance and reinsurance services. The major risk underwriting business of the company covers fire insurance, marine insurance, motor insurance and miscellaneous areas.

By virtue of its progressive business practices as well as

financial performance, BGIC has become one of the first-grade insurance companies in the country. The gross and net premium income of the company has increased consistently each year. Its net premium went up from Tk 3.21 million in 1985 to Tk 92.22 million in 1999. The net claims settled by the company amounted to Tk 2,620 only in 1985 and stood at Tk 21.42 million in December 1999. The company earned underwriting profits and pre-tax profits of Tk 1.02 million and Tk 0.84 million respectively in 1985 and Tk 70.8 million and Tk 12.28 million in 1999. A significant amount of the investment income of BGIC is derived from its investment portfolio consisting of Pratirakkha Sanchaya Patra (Defense Savings Certificate) and shares and debentures.

Total assets of the BGIC have enhanced from Tk 38.62 million in 1985 to Tk 443.91 million in 1999, when its total reserves were Tk 1,138.5 million, of which Tk 96.61 million was maintained as reserve for exceptional losses. The company paid dividend at the rate of Tk 15 per ordinary share in 1999.

BGIC has its headquarters at DHAKA and has 21 zonal and branch offices (31 December 1999) at different important district towns throughout the country. Its management team is headed by the managing director, who is also the member secretary of the organisation's 16-member board of directors.

Banglapedia in Bengali Bangladesh General Insurance Company Ltd (BGIC) the first ever general INSURANCE company in Bangladesh to come up in the private sector under the scheme offered by the government of Bangladesh by virtue of the Insurance (Amendment) Ordinance 1984, and the Insurance Corporations (Amendment) Ordinance 1984. BGIC was incorporated as a public limited company under the COMPANIES ACT 1913 and started business on 29 July 1985 with an authorised capital of Tk 100 million divided into 1,000,000 ordinary shares of Tk 100 each. Its initial paid up capital was Tk 30 million, which rose to Tk 72 million in 1999. In May 1989, the company offered Tk 30 million for public subscription. It is listed with both Dhaka and Chittagong STOCK EXCHANGE s. In December 1999, the number of shareholders of the company was 4,370, who held 720,000 shares.

The company was established for carrying out all types of general insurance business. It underwrites risks involved in trade and properties and thus provides their security through insurance and reinsurance services. The major risk underwriting

business of the company covers fire insurance, marine insurance, motor insurance and miscellaneous areas.

By virtue of its progressive business practices as well as financial performance, BGIC has become one of the first-grade insurance companies in the country. The gross and net premium income of the company has increased consistently each year. Its net premium went up from Tk 3.21 million in 1985 to Tk 92.22 million in 1999. The net claims settled by the company amounted to Tk 2,620 only in 1985 and stood at Tk 21.42 million in December 1999. The company earned underwriting profits and pre-tax profits of Tk 1.02 million and Tk 0.84 million respectively in 1985 and Tk 70.8 million and Tk 12.28 million in 1999. A significant amount of the investment income of BGIC is derived from its investment portfolio consisting of Pratirakkha Sanchaya Patra (Defense Savings Certificate) and shares and debentures.

Total assets of the BGIC have enhanced from Tk 38.62 million in 1985 to Tk 443.91 million in 1999, when its total reserves were Tk 1,138.5 million, of which Tk 96.61 million was maintained as reserve for exceptional losses. The company paid dividend at the rate of Tk 15 per ordinary share in 1999.

BGIC has its headquarters at DHAKA and has 21 zonal and branch offices (31 December 1999) at different important district towns throughout the country. Its management team is headed by the managing director, who is also the member secretary of the organisation's 16-member board of directors.

bgic

Documents

loss account

insurance act

insurance business

ordinary share of

proper books of account

insurance rules

general reserve

share against36