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 PLC.

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.

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 of 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 supports 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 PLC, Chittagong Stock Exchange PLC, 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 CIC 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.

Md. Nakibur Rahman Khan,

Chief Executive Officer