Bismillahir Rahmanir Rahim

Distinguished Shareholders,

It is a great pleasure to extend a warm welcome to all of you for your kind presence in the 36th Annual General Meeting (AGM) of Central Insurance Company Limited (CICL).

Let me express my heartfelt gratitude for your continued support for the company. It is because of your kind patronage and persistent support that we are recognized as a promising insurer in the insurance industry in Bangladesh.

On behalf of the Board, I am very glad to present the Annual Report of the Company for the year ended on 31st December, 2023, with the Audited Accounts before you. In this 36th Annual Gathering of the valued shareholders of CICL, I would like to draw your attention to some major achievements of the Company in 2023. 

Basically, in 2023, the main focus of our company was enhancing profit growth from underwriting business, protecting clients in the face of large claims and strategic implementation of Integrated Software in the operation of the Company. 

GLOBAL UPSETS 

You know, the global economy faced a new challenge after the Great Depression of the 1930s due to COVID-19 and Russia-Ukraine War impact resulting in higher inflation rate of the Globe. Global output was contracted by a significant percentage in 2023, reflecting above expectation growth in some of the largest economies and the prudent extension of pandemic-era stimulus programs by some governments. The global economy continues to be weakened by the war through significant disruptions in trade and food and fuel price shocks, all of which are contributing to high inflation and subsequent tightening in global financing conditions. The only measures should be policy instruments: income protection measures and job protection measures.

However, we all know the risk of a negative impact on Bangladesh's balance of payments was raised due to the Covid-19 and Russia-Ukraine war, together with the sluggish global economic growth, supply chain disruptions, rising prices for fuel, gas, food, consumer goods, industrial raw materials, and freight on the international market.

Bangladesh is one of the fastest growing economies in the world. As per WTO, after the global pandemic in fiscal year 2022-23, Bangladesh registered a GDP growth rate of 6.3% where Global Growth was only 4 percent. 

The global economy is expected to have a somewhat slower growth in 2023 due to tighter financial conditions and geographical tensions. Emerging economies and developing countries were in troublesome condition to keep constant growth of their economies; projected growth of developed economies, especially in Europe, would decline. However, the insurance sectors in emerging economies are expected to rise in 2023.  Inadequate policy responses in some areas of the institutional investors had a negative impact on both global and local industry. Total economic growth of the globe, however, has been forecasted to slow down.  Forecasting growth of the insurance industry in Bangladesh is yet to be projected. 

As a result, while the world fears an increasing recession, Bangladesh is also going through its own social, economic and financial challenges and all the acknowledgments should be given to the government for taking stable and assertive policies.

WE ARE FORTUNATE 

Our company has been able to contribute value to our stakeholders over the years by increasing in growth-oriented segments, such as:

In a product mix built on innovation and diversification

In a skilled and dedicated workforce

Unwavering focus on sustainability and environmental

Social and Governance (ESG)standards

A large and loyal customers

Intermediary partners

It is the company's responsibility to maintain our investment in digital and technological infrastructure. So that the customers and distribution partners receive better service. Moreover, this will help in optimizing the expenses by enabling the maintenance of functional paperwork. Also, improve the operational efficiency and ensure that the company provides prompt, equitable and competent service across the board to all our customers. Moreover our ground work is solid and the company possesses the knowledge, tools and expertise that is essential for success. Customers and partners have higher expectations towards our company, also we have a strong fiscal management standard to back up our conviction as a large and stable insurance conglomerate.

More to this, each department in our organization is composed of skilled professionals who share a commitment in providing exceptional service to our clients, as a result, the company will keep setting boundaries to per-sue company’s goal.

However, CICL has been maintaining a good track record in payment of its dividend, from divisible profits of 2023, we recommended 12% cash dividend from Net Profit Tk. 105 million to be declared as the Dividend for the year 2023 in the 36th AGM by the honorable shareholders. The paid-up capital of the company has reached 531.44 million taka and leaves a remarkable position among non-life insurance companies in Bangladesh.

IDRA ISSUES AND RURAL BUSINESS

The Insurance Act, 2010 requires non-life insurance services to be dispersed to the rural as well as to the social sector. Conceived in prudent underwriting, CICL follows all applicable rules, regulations and orders of IDRA meticulously. CICL has been sending information about policies to the Unified Messaging Platform (UMP) regularly at the end of every day’s business. Also, the company has been providing insurance coverage to the insured party by underwriting Small and Medium Enterprise (SME) businesses through its branch network at remote areas of the company. It is also known that, in most of the cases this small sector remains unprofitable.

CAPITAL MARKET STABILIZATION FUND (CMSF)

For the general investor interests, a steady securities market is enabled. Thus, Bangladesh Securities and Exchange Commission (BSEC) constituted the Capital Market Stabilization Fund (CMSF) with the unsettled cash or stock dividend and non-refunded public subscription money or un-allocated rights shares from the issuer of listed securities lying with them for more than three years. CICL, being a listed issuer, has transfer red the required amount of unclaimed dividend in the fund, maintaining compliance with the rules.

FUTURE OUTLOOK

It is known that the economic condition might not go well in Bangladesh like the world economy in the year 2024. The International Monetary Fund (IMF) has lowered the projection of gross domestic products (GDP) growth for Bangladesh to 6% for the first half of the year 2024. Therefore, the inflation rate is higher than it was expected. 

To conclude my comments, I would like to convey our deepest sympathy and compassion to all those affected by the tragic war taking place in Ukraine. We really hope for an early and peaceful solution to the conflict. However, we do believe that Bangladesh will definitely be able to cover up the difficulties posed by the crisis. CICL with its prudent insurance services will remain committed to overcome any challenges of the future and to be in momentum for prudential business growth in 2024.

CONCLUSION

To sum up, from the Board of Directors, I would like to thank our shareholders, regulators, stakeholders and government i.e., Ministry of Finance, Bangladesh Securities and Exchange Commission (BSEC), DSE, CSE, CDBL, Bangladesh Insurance Association (BIA) and Bangladesh Insurance Forum (BIF), Bankers and Customers for their continued support during this challenging time. 

My warmest gratitude to all the members of the Board of Directors for their valuable time and energy in supporting me to carry out my responsibilities during the meetings and strategy formulation to run the Company to a new height. I have no hesitation in mentioning the dedication and professionalism of the management team of the Company. 

Once again, I would like to thank all our clients, our stakeholders, our directors and all of you for being with us through these years and we are looking forward to sharing the company’s success with you all also in the future.

Thank you to everyone who has been a part of our development and for your steadfast support and trust which has strengthened the company to its present glory.

Thank you,

 Sd/-

Alhaj Mohammed Masud Hossain

Hon'ble Chairman

Bismillahir Rahmanir Rahim,

Dear Honourable Shareholders,

On behalf of the Management Team, I am pleased to report to you about the company’s consistent improvement and performance. I would like to express our deepest appreciation and grateful acknowledgement for your uninterrupted and praiseworthy support and cooperation for Central Insurance Company Limited (CICL).

Central Insurance’s planning and preparation over the past few years, executed with a tremendous sense of resolve, has demonstrated the intended benefits that have begun materializing, which is encouraging as the world begins its cautious return to normalcy. The company has performed well amid the challenging operating conditions of the year and now we are preparing to stabilize operations to thrive in the post-pandemic environment, charting our path to an exciting future.

We continue to work hard to ensure the company’s principles, values and the outcomes arising from the ESG framework, are judged on their respective effectiveness and the ability of the business to fulfill its purpose.

Substantiating our purpose

We want to be the most desired employer and general insurance company in Bangladesh. Our primary focus will be on developing a more sustainable company model based on the solid pillars of customer-oriented organization.

It is also pleasing that Central Insurance made good progress on reducing its environmental footprint through many efforts such as reducing paper and energy consumption, improving social and community wellbeing, while also being able to offer customers more innovative and sustainable products and services. Ultimately, ensuring a better future for all our stakeholders.

Economic overview

For the world economy and polity, the year 2023 has been a challenging period for several reasons.  In reality, the year ended was a challenging year for reshaping our dream to be a good market player in the non-life insurance business ecosystems in Bangladesh due to post pandemic and geographical tensions among the countries. 

Amidst business challenges with the said effects, we have passed another successful business year. The government has already started with new promises for the insurance sector. It shows beacons of hope for Bangladesh to reach its desired roads to prosperity.

On almost every parameter, Bangladesh has stood out. From being one of the world’s poorest nations at independence in 1971, the country has reached middle-income status and is headed to exit the United Nations’ Least Developed Countries list by 2026. Poverty has declined from 43.5 percent in 1991 to 14.3 percent and its human development indicators outstrip most of its peer countries, especially in terms of women’s workforce participation and empowerment.

Operational Risk Management

Globally, the insurance sector has been experiencing high inflations; the global economy is slowing sharply and inflation is at multi-decades highs. Many major economies and Central banks are hiking interest rates, targeting price stability over economic growth. It also signals the end of the era of financial repression. For insurers, rising interest rates are a silver lining with investment returns set to improve.

As always in 2023 we have actively taken into account different operational risks because we firmly acknowledge that our business is subject to operational risks failure of internal and external systems since we are involved in a large number of transactions with clients, brokers and re-insurers.

Therefore, we pay due heed to the risk improvement practices, and employ a range of risk mitigation strategies based on evaluation and monitoring on an ongoing basis, of course in accordance with our stated risk appetite.

Human Capitalization

Human Capitalization is one of our most priority objectives. Being financial service providers, we invest in human capital development in addition to our investment in information technology. Our Philosophy is that ICT investment and ensuring fringe benefits to our trusted employees can provide us advantages for a certain period of time, and it can easily be imitated. But it is human capital development, which provides us with real competitive advantages over the years.

However, we arrange a congenial environment for our staff for ensuring self-motivation in discharging responsibilities in the most professional manner. In addition to offering various training at our training institute we engage our employees training offered by in-house and local courses.

Prompt settlement of claims

Ensuring customer services, particularly at the time of claims settlement, Central Insurance aims at becoming the forerunner since claims are the only event when the customers are in distress and they need mental and financial support and in such a situation, insurance should be standing beside the customers. We embed this into our practices.

Regulatory Framework

Compliance to regulations introduced by “Insurance Development and Regulatory Authority (IDRA)” is our top priority. It is our strength, which facilitates good corporate governance and ensures adequate services. We also abide by the secondary regulatory body like Bangladesh Securities and Exchange Commission (BSEC), Dhaka Stock Exchange Limited, Chittagong Stock Exchange Limited, Bangladesh Bank and other applicable rules and regulations from related bodies. We believe that adherence to business ethics and complaint to regulations would pay us in the long run to this edge, we have committed towards self-regulation, which is the heart of a complaint company.

Hopes 

Despite a challenging business environment, we are extremely happy to share that our fund management efforts during the year resulted in outperforming market benchmarks for both fixed income and equity investments. Our investment portfolios recorded a momentous investment income of TK 83.62 million for the year 2023. Whereas the last year (2022) was Tk. 79.31 million.

As a promising non-life insurance company, our quality policy descriptions are to become a reputed Insurance Company through the fulfillment of business partner satisfaction and conforming to business partners’ expectations. In that view we are serving clients and customers to cater to market demands. Our competent Management team sort frequently to sort out problems and focus on using problem-solving tools through brainstorming and focus group discussions. Our dynamic Board guides the evaluation of employees’ efficiency and facilitates continuous training in professional and technical skills. Our strategy is to bring trust and profit logically through clients’ and business partners’ satisfaction.

Becomes a better market player

Business strategy mix is a combination of plans to reach specific business objectives. Strategic plans have a synergy to achieve it. Insurance is a highly competitive market, especially the non-life category. Moreover, there are 45 private non-life operators playing in this small country. So, performance matrices require being very competitive. The matrix of strategy is always paving the way forward of a business and synergy determines the execution.

To maintain Company’s focus on improving response time in customer services, the Company realizes the necessity of using efficient technology in every possible area of services and accordingly, developed IT infrastructure, UMP Reporting, Prompt Claim Payment Policy including efficient software solution, based on entirely online system–which will be designed to offer excellent customer services as well as prompt settlement of claims.

Future and plans

In the year 2024 and beyond we will continue to create value for our customers, clients, and partners through our insurance products and services. As a result, our shareholders, through our consistent focus on delivering adorable and personalized products, services and solutions our bondage with them will be stronger and services will be faster and they feel safer. In the coming year, with the best wishes from all of you, and sincere efforts put in by our colleagues, we are confident to do better than before.

Thanks 

Before I conclude, I would like to express my sincere thanks and gratitude to IDRA including other regulators, respectable shareholders, respected business partners, valued clients, reinsurers and well-wishers for reposing their trust and confidence in making the year 2023 a success. 

My sincere gratitude and profound thanks to the honorable Chairman and the respectable Directors of the Board for their judicious guidance, pragmatic vision, valuable input, and patronage throughout the year and I look forward to receiving the same in future. 

Finally, I would like to thank all our colleagues for their endless support with professionalism. On the other hand, we sincerely thank all of our customers, staff, partners, regulators and stakeholders for their continuous support and faith in our brand. In the coming days we would excel in making sure of the customer’s satisfaction and yields for our valued shareholders.

As a proud member of the CICL family, let's sing the song of professionalism and ethical business practices towards work as a bridge to the huge gap in insurance in Bangladesh.

I strongly believe and hope that like the previous year again we will sail together towards the intended target of building ourselves the best of the bests.

Thank you and best wishes to you and your family.

Sd/-

Khosru Dostagir Alam

Chief Executive Officer