ratio analysis of life insurance_iba

8/9/2019 Ratio Analysis of Life Insurance_IBA

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Assignment on Ratio Analysis of Life InsuranceCompanies listed in the DSE

Course name: Financial Markets and Institutions

Course code: F403

Prepared for

Prof. Dr. Jahangir lam

Prepared !"

#a$ia %a!assum '(

Jahin Masnun )*0+

Fahad ,in &ultan )*-4

,, '(

Institute of ,usiness dministration

ni/ersit" of Dhaka


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'3 June -0'0


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%his assignment is on the /arious t"pes of ratio anal"sis done on the ten listed life

insurance companies to anal"$e their performance in to a"s. First1 the intra2compan"

ratio anal"sis is shon o/er fi/e "ears -0042-005 to see the trend. #e6t1 intercompan"

ratio anal"sis of the latest -00 is shon. lso1 the industr" a/erages ere found using

the totals of !oth numerator and denominator /alues of different ratios to make the

comparison more meaningful.

%he names of all the listed life insurance companies are gi/en !elo:

'. Delta 7ife Insurance Co. 7td.-. Fareast Islami 7ife Insurance Co. 7td.

3. Meghna 7ife Insurance Co. 7td.4. #ational 7ife Insurance Co. 7td.(. Popular 7ife Insurance Co. 7td.8. Pragati 7ife Insurance 7td.

+. Prime Islami 7ife Insurance 7td.. Progressi/e 7ife Insurance Co. 7td.

9. *upali 7ife Insurance Compan" 7imited'0. &andhani 7ife Insurance

From this list1 e could not include Delta 7ife Insurance Co. 7td. In our anal"sis since

the" ha/e stopped pu!lishing annual reports after -004 due to litigation ith one of their

sponsors. lso1 *upali 7ife Insurance as listed in -009. nd the annual reports !efore

-00( could not !e found.

7ogical relationship e6ists !eteen certain accounts and items in a compan"s financial

statements. %hese accounts ma" appear on the same statement or the" ma" appear on

to different statements2 ,alance sheet and Income statement. %he dollar or taka

amounts of related accounts or items are set up in fraction form and called ratios. %hese

ratios can !e !roadl" classified as:

'. 7i;uidit" *atios

-. 7e/erage *atios

3. Profita!ilit" %est *atios

4. Market %est *atios

(. Industr" &pecific *atios

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Literature Review

Definitions and %heories at pla" in this assignment:

Current asset: !alance sheet item hich e;uals the sum of cash and cash

e;ui/alents1 accounts recei/a!le1 in/entor"1 marketa!le securities1 prepaid e6penses1

and other assets that could !e con/erted to cash in less than one "ear. compan"?s

creditors ill often !e interested in ho much that compan" has in current assets1

since these assets can !e easil" li;uidated in case the compan" goes !ankrupt. In

addition1 current assets are important to most companies as a source of funds for

da"2to2da" operations. Current lia!ilities: !alance sheet item hich e;uals the sum of all mone" oed !" a

compan" and due ithin one "ear. lso called pa"a!les or current de!t.

Current ratio: n indication of a compan"?s a!ilit" to meet short2term de!t

o!ligations@ the higher the ratio1 the more li;uid the compan" is. Current ratio is

e;ual to current assets di/ided !" current lia!ilities. If the current assets of a

compan" are more than tice the current lia!ilities1 then that compan" is generall"

considered to ha/e good short2term financial strength. If current lia!ilities e6ceed

current assets1 then the compan" ma" ha/e pro!lems meeting its short2term

o!ligations. For e6ample1 if AB) Compan"?s total current assets are '0100010001 and

its total current lia!ilities are 100010001 then its current ratio ould !e

'010001000 di/ided !" 100010001 hich is e;ual to '.-(. AB) Compan" ould !e

in relati/el" good short2term financial standing. %otal asset turno/er: #et sales di/ided !" total assets. %his is a measure of ho ell

assets are !eing used to produce re/enue. lso called asset turno/er.

*eturn on assets: measure of a compan"?s profita!ilit"1 e;ual to a fiscal "ears

earnings di/ided !" its total assets1 e6pressed as a percentage. igh "ield: Description of in/estments ith high rates of return. Eenerall"1 a high

"ield !ond ill !e ranked /er" lo !" a rating agenc"1 !ecause these are !onds hich

ha/e a relati/el" high chance of default1 and therefore ha/e to offer higher returns.

&imilarl"1 a stock ill offer a high di/idend "ield in order to compensate for loer

e6pected capital gains1 for e6ample a large compan" in a mature industr" hich is no

longer groing.

7i;uidit" ratio: 7i;uidit" ratios are used to indicate a compan"s short term de!t2

pa"ing a!ilit". %hus1 these ratios are designed to sho interested parties the

compan"s capa!ilit" to meet maturing current lia!ilities.

7e/erage *atios: 7e/erage =;uit" or long2term sol/enc" ratios sho the relationship

of de!t and e;uit" financing in a compan".

=;uit" *atio: %his indicates the proportion of total assets pro/ided !" stockholders

in/estors5 on an" gi/en date. It is found out !" di/iding the stockholders e;uit" !"

the total assets.

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&hareholders =;uit" to De!t ratio: %his ratio is "et another measure of the relati/e

e;uities of oners and creditors. It shos the num!er of taka of stockholders e;uit"

to one taka of total de!t. It e6amines firms capital structure. Profita!ilit" *atio: Profita!ilit"1 i.e. a!ilit" of a compan" to earn profits1 is an

important measure of a compan"s operating success. Eenerall"1 e are concerned

ith to areas hen Gudging profita!ilit" H a. *elationships on the income statement

that indicates a compan"s a!ilit" to reco/er costs and !. *elationships of income to

/arious !alance sheet measures that indicate the compan"s relati/e a!ilit" to earn

income on assets emplo"ed.

Management =6pense to Premium *atio: %his is a special kind of ratio onl" to

measure insurance companies performances. %his depicts ho much of total

management costs are co/ered !" the premiums earned. *eturn on e;uit": measure of ho ell a compan" used rein/ested earnings to

generate additional earnings1 e;ual to a fiscal "ear?s after2ta6 income after

preferred stock di/idends !ut !efore common stock di/idends5 di/ided !" !ook /alue1

e6pressed as a percentage. It is used as a general indication of the compan"?s

efficienc"@ in other ords1 ho much profit it is a!le to generate gi/en the resources

pro/ided !" its stockholders. In/estors usuall" look for companies ith returns on

e;uit" that are high and groing.

Capital structure: %he permanent long2term financing of a compan"1 including long2

term de!t1 common stock and preferred stock1 and retained earnings. It differs from

financial structure1 hich includes short2term de!t and accounts pa"a!le. De!te;uit" ratio: measure of a compan"?s financial le/erage. De!te;uit" ratio is

e;ual to long2term de!t di/ided !" common shareholders? e;uit". %"picall" the data

from the prior fiscal "ear is used in the calculation. In/esting in a compan" ith a

higher de!te;uit" ratio ma" !e riskier1 especiall" in times of rising interest rates1 due

to the additional interest that has to !e paid out for the de!t. For e6ample1 if a

compan" has long2term de!t of 31000 and shareholders e;uit" of '-10001 then the

de!te;uit" ratio ould !e 3000 di/ided !" '-000 0.-(. It is important to reali$e

that if the ratio is greater than '1 the maGorit" of assets are financed through de!t. If

it is smaller than '1 assets are primaril" financed through e;uit".

&ponsor: %he general partner ho organi$es and sells the limited partnership.

1 Liquidity Ratios

It is used to measure the sol/enc" of the firm. It also measures the a!ilit" of the firm to

pa" o!ligation hen due. If the firm has an e6cessi/e net orking capital1 the firm is

deemed to !e li;uid.

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11 Current Ratio! "or#ing Capital Ratio


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Asset 773,743,965

1,191,232,059

1,780,152,113

2,464,382,969

3,428,341,928

Total CurrentLiability

181,080,808

265,474,351

332,695,914

411,052,781

494,499,981

Current Ratio 4.272920877

4.487183242

5.350688235

5.995295697

6.932946531

%he graph shos that Meghna 7IC is ha/ing an increasing current ratio. %his is

consistentl" going up till -00. It indicates the sol/enc" of the firm. It also indicates the

a!ilit" of the firm to pa" o!ligation hen due.

3. #ational 7ife Insurance Co. 7td.

Year 2004 2005 2006 2007 2008

Total CurrentAsset

3,739,592,502

4,721,936,073

6,218,387,607

7,639,915,354

9,568,399,344


834,003,976

1,010,761,872

1,364,847,472

1,592,600,182

1,633,149,615


4.671660263

4.556104425

4.797133292

5.858862688

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%he graph shos that #ational 7IC is ha/ing a sta!le current ratio e6cept a slight

de/iation in -00. %his is consistentl" mo/ing !eteen 4 to (. It indicates the sol/enc"

of the firm. It also indicates the a!ilit" of the firm to pa" o!ligation hen due is in a risk"

position if there had !een some unusual claims than a/erage.

4. Popular 7ife Insurance Co. 7td.

Year 2004 2005 2006 2007 2008

Total CurrentAsset

347,292,057

864,123,605 1,733,941,015

2,309,930,327

4,031,506,550


92,883,285

114,153,865

89,838,916 81,671,688 129,892,448


7.569814697

19.30055584

28.28312214

31.03726669

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%he graph shos that Popular 7IC is ha/ing an increasing current ratio. It gre rapil"

during -0042-00+. %hen the groth sloed don. It ma" happen due to decrease in

current asset. It indicates the sol/enc" of the firm. It also indicates the a!ilit" of the firm

to pa" o!ligation hen due.

(. Pragati 7ife Insurance 7td.

Year 2004 2005 2006 2007 2008

Total CurrentAsset 231,650,923

2,083,369,284

645,578,197

768,284,037

982,856,552


50,010,527

1,783,623,988

137,936,153

89,970,967 91,149,826


1.168054084

4.680268247

8.539243965

10.78286811

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%he graph shos that Pragati 7IC is ha/ing some difficult" in maintaining a sta!le current

ratio. %his has fallen drasticall" in -00(. %hen it is consistentl" going up till -00. It

indicates the sol/enc" of the firm after the period -00(.. It is also indicating the lack

a!ilit" of the firm to pa" o!ligation hen due in -00(.

8. Prime Islami 7ife Insurance 7td.

Year 2004 2005 2006 2007 2008

Total CurrentAsset

95,878,648

184,982,778

1,799,840,379

785,994,575

1,273,438,466


14,196,772

28,104,574

36,110,948

51,882,103

79,046,537


6.581945629

49.8419587

15.14962828

16.10998425

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%he graph shos that Prime Islami 7IC has maintained a sta!le current ratio o/er -0042

-00 e6cept the !oom in -008. It as around '0 on an a/erage the graph indicates the

sol/enc" of the firm. It also indicates the a!ilit" of the firm to pa" o!ligation hen due.

s the firm has an e6cessi/e net orking capital in -0081 the firm is deemed to !e facing

li;uidit" flood.

+. Progressi/e 7ife Insurance Co. 7td.

Year 2004 2005 2006 2007 2008Total CurrentAsset

48,913,576

89,333,127 199,406,074

297,397,199

417,741,848


19,397,238

84,980,804 47,429,554

47,118,284

47,071,931


1.051215366

4.204257835

6.311715405

8.87454241

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%he graph is similar to pragati 7I. &o1 it indicates that Progressi/e as facing ;uite same

financial situations like that firm. %he figures are a !ill less than that of pragati 7i. fter

-00(1 the firm as a!le to pull up current ratios up to .+

. *upali 7ife Insurance Compan" 7imited

Year 2004 2005 2006 2007 2008

Total CurrentAsset

121,733.00

154,040.00

224,397.00

343,035.00

320,247.00

Total CurrentLiability 30,952.00 33,360.00 20,739.00 13,690.00 17,412.00

Current Ratio 3.9330 4.6175 10.8200 25.0573 18.3923

*upali 7I maintained a health" groth from -004 to -00+. %he !oon occurred in -00+

hen the ratio hit the ceiling of -(. %hen it came don to '. It indicates the sol/enc" of

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the firm in recent times. It also indicates the a!ilit" of the firm to pa" o!ligation hen

due.

9. &andhani 7ife Insurance

Year 2004 2005 2006 2007 2008

Total CurrentAsset

684,325,073

933,510,155

1,247,226,109

1,810,899,182

2,774,270,544


225,912,853

240,598,274

255,184,247

274,734,053

287,790,249


3.879953665

4.887551342

6.591462406

9.639904596

%he graph shos that &andhani 7IC is ha/ing an increasing current ratio hich is

increasing at a constant rate. %he -00 current ratio is the highest. It indicates !etter

sol/enc" of the firm in later "ears. It also indicates the a!ilit" of the firm to pa"

o!ligation hen due in coming "ears as the firm is ha/ing more current assets in e/er"folloing "ears.

'0. Industr" performance

Year 2004 2005 2006 2007 2008

TotalindustryCA

6,839,901,078.00

11,270,444,586.00

15,671,212,683.00

19,370,069,986.00

27,329,501,483.00

TotalindustryCL

1,598,852,473.00

3,713,202,869.00

2,526,741,230.00

2,789,616,375.00

3,172,735,713.00

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Currentratio:

4.278006379

3.035235344

6.202143891

6.943632164

8.613860074

%he graph shos that there has !een a little donfall in the life industr" market in -00(.

=6cept that1 the current ratios of the 7ICs ere on the rise. -00 tends to !e the most

promising "ears for all 7ICs. %he industr" mo/ed !eteen 8 to .( in recent "ears of

-0082-00.

2004 2005 2006 2007 2008

NationalLI

4.483902

4.67166

4.556104425

4.797133292

5.858862688

Fareast LI 5.064534

6.479711

7.790764155

13.6878553

11.83227605

e!"naLI

4.272921

4.487183

5.350688235

5.995295697

6.932946531

#o$ular LI 3.739016

7.569815

19.30055584

28.28312214

31.03726669

#ra!ati LI 4.632043

1.168054

4.680268247

8.539243965

10.78286811

#ri%eIsla%i LI

6.753553

6.581946

49.8419587

15.14962828

16.10998425

#ro!ressi&e LI

2.521677

1.051215

4.204257835

6.311715405

8.87454241

'and"ani

LI

3.0291

55

3.8799

54

4.887551

342

6.591462

406

9.6399045

96Ru$ali LI 3.9329 4.6175 10.82004 25.05734 18.392315

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61 06 918 112 64

%his comparati/e o/er/ie of the anal"$ed companies shos that Prime Insurance 7IC

as the leader in -008 ho scored more than industr" !" a mile. Popular 7IC shos a

promising current ratio anal"sis ho seems to !e the market leader in terms of current

ratio.

1$ %uic# Ratio

uick *atio is risk free approach for interpreting the de!t pa"ing a!ilit" of a compan".

%his is found out !" di/iding the ;uick assets current asset2in/entor"2dou!tful

recei/a!le5 !" the current lia!ilities. ence this ratio is useful to get the information

a!out the relationship !eteen immediate cash inflos to cash outflos. It shos a!ilit"

of the firm to pa" de!ts ithout rel"ing on re/enue and collection of dou!tful recei/a!le.

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'. Fareast Islami 7ife Insurance Co. 7td.

Year 2004 2005 2006 2007 2008


181,336,062

185,471,781

262,677,287

240,572,627

410,117,714

Cas"(ar)etablese*urities(A**ountsre*ei&ables

821,273,166

1,093,964,467

1,897,057,888

2,974,758,868

4,261,990,328

+ui*) Ratio 4.529011808

5.898279841

7.222009598

12.36532562

10.39211471

%he graph shos that Far =ast Islami 7IC had a positi/e increasing trend of ;uick ratio.

%his shos the increasing de!t pa"ing a!ilit" of the compan" till -00+ hen it e6ceeded

'- mark. %his ratio is pro/iding the information a!out the relationship !eteen

immediate cash inflos to cash outflos of 7IC hich is ;uite promising o/er the "ears.

%hough it decreased in -00 !ut sta"ed a!o/e than most other anal"$ed companies. %he

graph shos a!ilit" of the firm to pa" de!ts ithout rel"ing on re/enue and collection of

dou!tful recei/a!le.

-. Meghna 7ife Insurance Co. 7td.

Year 2004 2005 2006 2007 2008

Total Current Liability 181,080

,808

265,474

,351

332,695

,914

411,052

,781

494,499,

981Cas"( ar)etable

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se*urities(A**ountsre*ei&ables

688,634,381

1,084,894,092

1,589,564,462

2,133,047,560

2,930,140,780

+ui*) Ratio 3.802912018

4.086624896

4.777829829

5.189230334

5.925461866

%he graph shos that Meghna 7IC had a constant increasing trend of ;uick ratio. %his

shos the increasing de!t pa"ing a!ilit" of the compan". %his ratio is pro/iding the

information a!out the relationship !eteen immediate cash inflos to cash outflos of

7IC hich has mo/ed around 3.02(.9-. %he graph shos a!ilit" of the firm to pa" de!ts

ithout rel"ing on re/enue and collection of dou!tful recei/a!le. If the claims increase

e6tra2ordinaril"1 then the firm ma" face some li;uidit" shortage.


Year 2004 2005 2006 2007 2008

Total Current Liability 834,003,976

1,010,761,872

1,364,847,472

1,592,600,182

1,633,149,615

Cas"( ar)etablese*urities(A**ountsre*ei&ables

3,286,797,922

4,199,840,603

5,527,350,235

6,719,792,836

8,483,267,574

+ui*) Ratio 3.940985914

4.155123694

4.049793364

4.219384697

5.194421562

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%he graph shos that #ational 7IC had a constant trend of ;uick ratio !eteen FB-0042

0. %he de!t pa"ing a!ilit" of the compan" is ;uite immo!ile. %his ratio is pro/iding the

information a!out the relationship !eteen immediate cash inflos to cash outflos of

7IC hich suggests that the current lia!ilit" as ell as cash in hand has not increased

o/er "ears.. %he a!ilit" of the firm to pa" de!ts ithout rel"ing on re/enue and collection

of dou!tful recei/a!le is also limited. If the claims increase e6tra2ordinaril"1 then the firm

ma" face some li;uidit" shortage.


Year 2004 2005 2006 2007 2008

Total CurrentAsset

347,292,057

864,123,605

1,733,941,015

2,309,930,327

4,031,506,550


92,883,285

114,153,865

89,838,916 81,671,688

129,892,448


7.569814697

19.30055584

28.28312214

31.03726669

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%he graph shos that Popular 7IC had a trend of ;uick ratio hich had !een increasing

at a increasing rate since -004. It !ecame sta!le in -00. %his shos the increasing de!t

pa"ing a!ilit" of the compan". %he relationship !eteen immediate cash inflos to cash

outflos of this 7IC has mo/ed around 3..42-(.33. %his /olatilit" indicates that the a!ilit"

of the firm to pa" de!ts ithout rel"ing on re/enue and collection of dou!tful recei/a!le

has increased tremendousl".


Year 2004 2005 2006 2007 2008


1,783,623,988

137,936,153

89,970,967

91,149,826


153,676,232

1,985,134,531

445,565,486

373,886,763

406,158,269

+ui*) Ratio 3.072877676

1.112978153

3.230229902

4.155637929

4.455941243

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%he graph shos that Pragati 7IC maintained a ;uite sta!le ;uick ratio e6cept in -00(.

s the industr" suffered a donturn in -00(1 this firm as no e6ception in that time.

%his graph also shos the limited de!t pa"ing a!ilit" of the compan". Cash inflo to cash

outflo relationship of this 7IC indicates that the firm did not undergo much in/estment

or restructuring during -0082-00. %he graph shos limited a!ilit" of the firm to pa"

de!ts ithout rel"ing on re/enue and collection of dou!tful recei/a!le hich mo/ed

around 3.--24.4(. If the claims increase e6tra2ordinaril"1 then the firm ma" face some

li;uidit" shortage.


Year 2004 2005 2006 2007 2008


28,104,574

36,110,948

51,882,103

79,046,537


,-.-55./27

/77.485.-67

/.746.784.7--

66/.458.72,

882.272.--8

+ui*) Ratio 6.575799555 6.315177273 48.37271879 12.74926595 11.16142935

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Prime Islami 7IC maintained its stance in ;uick ratio a!o/e a/erage of the market. It

e/en e6ceeded its on standard in -008 up to 4.3+. %his shos the e6cellent de!t

pa"ing a!ilit" of the compan". %his ratio is pro/iding the information a!out the

relationship !eteen immediate cash inflos to cash outflos of 7IC hich has mo/ed

around 3.02(.9-. %he graph shos high a!ilit" of the firm to pa" de!ts ithout rel"ing

on re/enue and collection of dou!tful recei/a!le.


Year 2004 2005 2006 2007 2008


84,980,804

47,429,554

47,118,284

47,071,931


24,457,790

44,667,566

99,704,040

148,699,603

208,871,928

+ui*) Ratio 1.260890339

0.52561948

2.102150064

3.155879

4.437292534

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Progressi/e 7IC maintained an increasing ;uick ratio trend hich also increased at a

increasing rate since -00(. %his ratio is pro/iding the information a!out the relationship

!eteen immediate cash inflos to cash outflos of 7IC hich has mo/ed around -24.43

in the FB-00820. %he graph shos medium a!ilit" of the firm to pa" de!ts ithout

rel"ing on re/enue and collection of dou!tful recei/a!le. &till1 the firm stands ell a!o/e

industr" a/erage.


Year 2004 2005 2006 2007 2008


27,013,877

11,236,591

10,724,570

14,446,267


/78.87-.5-7

2-5.256.668

-54.5,7.,-7

48,.68/.-/8

506.807.587

+ui*) Ratio 5.778974756

8.708733959

31.55743027

45.6597624

35.08225253

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*upali 7IC ;uick ratio fluctuated during -00420. %heir market stance is ell a!o/e

a/erage. %heir ;uick ratio shos a !oom in -008 and -00+. %he graph shos high a!ilit"

of the firm to pa" de!ts ithout rel"ing on re/enue and collection of dou!tful recei/a!le.


Year 2004 2005 2006 2007 2008

Total Current Liability 225,91

2,853

240,598,

274

255,184,

247

274,734,

053

287,790,

249Cas"( ar)etablese*urities(A**ountsre*ei&ables

50,010,527

1,783,623,988

137,936,153

89,970,967

91,149,826

+ui*) Ratio 2.452298719

3.149513799

3.988265851

5.515715757

8.081959427

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&andhani 7I maintained an increasing ;uick ratio trend hich also increased at a

increasing rate since -004. %his ratio is pro/iding the information a!out the relationship

!eteen immediate cash inflos to cash outflos of 7IC here the inflos are higher

than outflos. %he graph shos medium a!ilit" of the firm to pa" de!ts ithout rel"ing

on re/enue and collection of dou!tful recei/a!le.

'0. Industr" performance

Year 2004 2005 2006 2007 2008

Total industryCurrent Liability

1,598,852,473.00

3,713,202,869.00

2,526,741,230.00

2,789,616,375.00

3,172,735,713.00


6,122,447,706

10,361,068,467

14,267,007,294

17,045,807,419

23,296,103,064

+ui*) ratio: 0.261145958

0.358380304

0.177103802

0.163654106

0.136191693

%he industr" shos a negati/e ;uick ratio trend in the anal"$ed "ears. It ent up in-00( and started falling since then. %he -00 /alue for ;uick ratio as the loest.

2004 2005 2006 2007 2008

NationalLI

4.483902

4.67166

4.556104425

4.797133292

5.858862688

Fareast LI 4.529012

5.89828

7.222009598

12.36532562

10.39211471

e!"naLI

3.802912

4.086625

4.777829829

5.189230334

5.925461866

#o$ular LI 3.4599

74

6.8509

08

17.68320

418

24.84492

297

25.333921

98#ra!ati LI 3.0728 1.1129 3.230229 4.155637 4.4559412

Page > --


25/116

78 78 902 929 43

#ri%eIsla%i LI

6.575800

6.315177

48.372719

12.749266

11.161429

#ro!ressi&e LI

1.260890

0.525619

2.102150 3.155879 4.437293

'and"aniLI

2.452299

3.149514

3.988265851

5.515715757

8.081959427

Ru$ali LI 3.594439

4.292771

11.511048

30.455793

17.786943

1& Cash Ratio

Cash ratio measures a compan"s a!ilit" to meet its current o!ligations ith Gust the

cash and cash e;ui/alents on hand. It is calculated as cash K short term marketa!le

in/estments di/ided !" current lia!ilities.


Year 2004 2005 2006 2007 2008

Total CurrentAsset

918,382,601

1,201,803,465

2,046,456,792

3,292,923,308

4,852,626,004


181,336,062

185,471,781

262,677,287

240,572,627

410,117,714


6.479710598

7.790764155

13.6878553

11.83227605

Page > -3


26/116

Far =ast Islami 7I Cash ratio specifies the compan"s moderate a!ilit" to meet its current

o!ligations ith Gust the cash and cash e;ui/alents on hand hich has increased o/er

"ears and fell a little in -00. %he compan" sta"ed in line ith the market in these "ears.


Year 2004 2005 2006 2007 2008


181,080,8

08

265,474,3

51

332,695,9

14

411,052,7

81

494,499,9

81Cas"(ar)etablese*urities

562,888,228

18,645,731

1,471,468,450

2,030,713,887

2,861,501,860

Cas" Ratio 3.108491917

0.070235527

4.422863005

4.940275266

5.786657169

Page > -4


27/116

=6cept in -00(1 Meghna 7I did good in cash ratio and maintained a sta!le groth in the

cash and cash e;ui/alents on hand. %here ma" ha/e !een some crisis in cash during

-00( hich caused the ratio to fall drasticall".


Year 2004 2005 2006 2007 2008


834,003,976

1,010,761,872

1,364,847,472

1,592,600,182

1,633,149,615

Cas"(ar)etable 'e*urities

2,842,541,312

3,804,030,325

5,087,311,445

6,139,896,765

7,731,460,857

Cas" Ratio 3.408306667

3.763527721

3.727384597

3.855265643

4.734079956

#ational 7I had a health" cash ratio and mo/ed ithin the limit of 3.(24.(. this graph

measures the compan"s strong a!ilit" to meet its current o!ligations ith Gust the cash

and cash e;ui/alents on hand.


Year 2004 2005 2006 2007 2008


92,883,285

114,153,865

89,838,916

81,671,688

129,892,448

Cas"(ar)etablese*urities

191,289,377

523,750,902

1,289,087,861

1,654,097,682

2,821,161,865

Cas" Ratio 2.059459643

4.588113613

14.3488804

20.25301206

21.71921392

Page > -(


28/116

Popular 7I had a health" cash ratio hich increased at a increasing rate. %his graph

indicates the compan"s moderate a!ilit" to meet its current o!ligations ith Gust the

cash and cash e;ui/alents on hand in -0082-00 "ear.


Year 2004 2005 2006 2007 2008


50,010,527

1,783,623,988

137,936,153

89,970,967

91,149,826


106,805,195

1,886,170,431

268,302,293

269,822,888

389,398,823

Cas" Ratio 2.135654259

1.057493308

1.945119442

2.998999533

4.272074233

Page > -8


29/116

=6cept the slight decrease in -00(1 the cash ratio of Pragati 7I increased at a health"

rate. %he ratio started at -.3- in -004 and ended at 4.-+. this increasing trend suggests

that the firm is doing good in maintaining a health" !alance of cash and cash

e;ui/alents.


Year 2004 2005 2006 2007 2008


14,196,77

2

28,104,57

4

36,110,94

8

51,882,10

3

79,046,53

7Cas"(ar)etablese*urities

59,757,874

127,065,797

1,719,518,981

595,818,573

780,213,651

Cas" Ratio 4.209257851

4.521178546

47.61766379

11.48408678

9.870307804

Page > -+


30/116

-008 as a promising "ear for Prime Islami 7i1 as the graph suggests. =6cept -0081

other "ears cash ratio mo/ed around (2'0 hich is a!o/e industr" a/erage. %he firm1

thus shos a moderate strength in managing li;uidit".


Year 2004 2005 2006 2007 2008


19,397,238

84,980,804

47,429,554

47,118,284

47,071,931


7,733,264

32,884,318

88,614,555

129,508,895

177,477,046

Cas" Ratio 0.398678616

0.386961719

1.868340466

2.748591078

3.770337061

%he increasing cash ratio of progressi/e 7I is attracti/e to the polic" holders hose

policies are going to mature incoming future. =6cept this1 cash ratio graph indicates the

firms strong a!ilit" in -0082-00 period to meet all other current o!ligations ith Gustthe cash and cash e;ui/alents on hand.


Year 2004 2005 2006 2007 2008


30,952,469

27,013,877

11,236,591

10,724,570

14,446,267

Cas"(

ar)etablese*urities

123,431,909 193,154,942 298,264,940 458,289,050 485,665,152

Page > -


31/116

Cas" Ratio 3.987788793

7.150211797

26.54407729

42.73262704

33.61873015

*upali 7I maintained a health" cash ratio in -0082-00 period and mo/ed ithin the limit

of 3.(24.(. this graph measures a compan"s strong a!ilit" to meet its current o!ligations

ith Gust the cash and cash e;ui/alents on hand. %he ratio indicates compan"s strong

stance in managing cash and cash e;ui/alents.


Year 2004 2005 2006 2007 2008


225,912,853

240,598,274

255,184,247

274,734,053

287,790,249


339,826,345

514,275,000

837,810,763

1,289,236,929

2,040,792,023

Cas" Ratio 1.504236437

2.137484162

3.283160198

4.692672477

7.091247984

Page > -9


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'0. Industr" performance in -00

Year 2004 2005 2006 2007 2008

Total industryCurrentLiability

1,598,852,473.00

3,713,202,869.00

2,526,741,230.00

2,789,616,375.00

3,172,735,713.00


5,024,350,658

8,142,478,239

12,867,291,054

15,278,853,814

21,141,634,070

Cas" ratio:

0.318220717826

0.456028589824

0.196369322758

0.182580212427

0.150070505548

%he industr" shos a decreasing trend in the anal"$ed "ears. %he ratio started falling

since -00( and ended up at '( in -00.

Page > 30


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2004 2005 2006 2007 2008

Fareast LI 4.356977566

5.620805426

6.878827578

11.27089636

9.397211243

e!"na LI 3.108491917

0.070235527

4.422863005

4.940275266

5.786657169

#o$ular LI 2.059459643

4.588113613

14.3488804

20.25301206

21.71921392

#ra!ati LI 2.135654259

1.057493308

1.945119442

2.998999533

4.272074233

#ri%e Isla%iLI

4.209257851

4.521178546

47.61766379

11.48408678

9.870307804

#ro!ressi&eLI

0.398678616

0.386961719

1.868340466

2.748591078

3.770337061

'and"ani LI 1.504236437

2.137484162

3.283160198

4.692672477

7.091247984

Ru$ali LI 3.9877887

93

7.1502117

97

26.544077

29

42.732627

04

33.618730

15National LI 3.4083066

673.7635277

213.7273845

973.8552656

434.7340799

56

*upali1 Popular and Prime Islami 7ICs are the a!o/e a/erage performers in the anal"$ed

"ears.. most of the companies shoed an increasing trend in the anal"$ed "ears. Prime

insurance compan" has topped in -008 in ;uick ratio. mong the other companies1

*upali 7I and Popular 7i mainained a good standing.

1' (otal Assets (urnover

ssets in a compan" are the sources for generating re/enue. %his ratio depicts the a!ilit"

of the assets to generate re/enue. It also measures the efficienc" of the management of

Page > 3'


34/116

the firm to utili$e assets to produce re/enue. %he total re/enue as found !" adding up

the net premiums1 income from profit1 di/idends and rents1 and other income. %he

a/erage total asset as found !" finding the a/erage of the total asset of the pre/ious

"ear and the current "ear. For this1 the total asset for -003 as also re;uired.


35/116

assets 80,306 3,978 9,594 1,584

Total AssetTurno&er

0.836826593 0.780914794

0.70147536 0.653040339

%his compan" also shos promise as the %% ratio is decreasing o/er the "ears. %he ratio

is /er" small indicating good use of assets to generate re/enues. &o1 the management

should !e happ" ith the trend and keep reducing this amount as much as possi!le.


National LI 2004 2005 2006 2007 2008

Total re&enue 2,445,315,956

3,068,351,359

3,805,258,288

4,499,429,778

5,119,796,765

A&era!e totalassets

4,245,836,076

5,667,645,034

7,520,571,621

9,668,765,345

11,949,572,179

Total AssetTurno&er

0.575932728

0.541380298 0.505979928

0.465357222 0.428450215

Page > 33


36/116

s the graph indicates1 the total asset turno/er ratio is consistentl" falling. %his shos

that !etter asset utili$ation is !eing done as the management gains insight on doing

!usiness. %he management should !e happ" ith a loer %% ratio as it indicates

efficienc".


#o$ular LI 2005 2006 2007 2008

Total re&enue 1,401,904,619

2,353,533,605

3,229,632,352

4,327,292,503

a&! totalassets

737,124,015 1,575,755,

7292,951,008,355

5,052,919,530

Total AssetTurno&er

1.901857206 1.493590384

1.09441654 0.856394502

Page > 34


37/116

%he %% ratio is graduall" declining and in -001 it has gone to 0.(8394(0-. For the

first time1 the ratio has gone !elo '. %his shos good ork !" the management ho

has utili$ed the assets !etter to generate re/enues.


#ra!ati LI 2005 2006 2007 2008

Total re&enue

370,960,101 589,511,900

678,164,120

896,186,398

a&! totalassets

1,202,765,986

1,449,046,750

854,213,914 1,106,456,787

Total AssetTurno&er

0.308422507 0.406827385

0.793904325

0.809960596

Page > 3(


38/116

Pragati has a uni;ue %% ratio. %he ratio is actuall" increasing unlike e/er" other

compan" in the life insurance industr". oe/er1 the" started off as a /er" efficient

compan" ith a ratio of 0.304--(0+. %his is /er" lo and pro!a!l" /er" difficult to

maintain. %hus1 in the competiti/e industr"1 the" are going to meet the rest of the

companies somehere in the middle. In -001 the ratio as 0.09980(981 hich is still

/er" much competiti/e compared to other peer companies. %heir management should tr"

to make sure this trend does not continue a!o/e a certain amount after hich the" ill

!ecome inefficient in the industr".


#ri%e Isla%i LI 2005 2006 2007 2008

Total re&enue 352,616,931 595,113,65

9892,846,079

1,171,602,483

a&! totalassets

203,963,292 1,097,411,

8111,449,753,877

1,272,017,263

Total AssetTurno&er

1.728825455 0.542288367

0.615860453

0.921058634

Page > 38


39/116

Prime Islami 7I has /er" dramaticall" loered their %% ratio in -008 to 0.(4--38+

from '.+--(4(( in the pre/ious "ear. %his is /er" commenda!le !ut in -00+1 the"

e6perienced a slight rise again in that num!er. In -0091 the assets ha/e !ecome less

efficient again compared to -008 and -00+.


#ro!ressi&eLI

2004 2005 2006 2007 2008

Totalre&enue

210,595,216

353,741,816

493,034,763

619,503,075

908,068,122

A&! totalassets

117,165,808

233,165,183

361,090,797

508,430,734

805,426,791

Total AssetTurno&er

1.797411894 1.517129668

1.365403846

1.218461107

1.127437196

Page > 3+


40/116

lthough the %% ratio is decreasing e/er" "ear1 it is still /er" high. %hus1 the assets of this compan" are not !eing properl" utili$ed. oe/er1 the management is shoing

impro/ement as this ratio is slol" getting loer.


Ru$ali LI 2004 2005 2006 2007 2008

Total re&enue 248,669,180

372,556,267 577,527,211

760,257,269 379,150,810

a&! totalassets 209,662,393

291,243,097 427,016,337

650,026,887 832,516,094

Total AssetTurno&er

1.186045702

1.279193467 1.352470997

1.169578189

0.455427604

Page > 3


41/116

In -0041 the %% as '.'8 hich slol" decreased and in -001 it as onl" 0.4((. %his

is a positi/e sign since the assets are no !eing used more and more efficientl" as

indicated !" the ratio. %he management is making more re/enue out of the assets.


'and"ani LI 2004 2005 2006 2007 2008

Total re&enue 778,286,079

1,182,758,447

1,461,538,156

1,910,195,286

2,200,684,627

a&! totalassets

817,553,630

1,178,607,694

1,684,921,377

2,472,075,484

3,546,221,790

Total AssetTurno&er

0.95196945

1.003521743 0.86742217

0.772709126

0.620571627

&andhani shos a consistent trend of %% ratio. %his ratio fluctuates ithin '.003(-'+43

to 0.8-0(+'8-+. In -001 it has done ell compared to other companies in using its

assets to generate re/enues. %his management is in/esting in the right assets to

generate as much re/enue as possi!le.


Co%$any Total assetturno&er

National LI 0.428450215


e!"na LI 0.653040339

#o$ular LI 0.856394502

#ra!ati LI 0.809960596#ri%e Isla%i LI 0.921058634

Page > 39


42/116

#ro!ressi&e LI 1.127437196

Ru$ali LI 0.455427604

'and"ani LI 0.620571627

Industrya&era!e

08,,0,4//8

s e can see that most companies are near the industr" a/erage of 0.99. oe/er1

Fareast is doing e6ceptionall" !ad in -00 ith a %% of -.-'9. nd the loest %% of

onl" 0.4- reported !" #ational 7ife Insurance. Fareast should !e concerned ith the

utili$ation of their assets.

$ Leverage Ratios

7e/erage =;uit" or long2term sol/enc" ratios sho the relationship of de!t and e;uit"

financing in a compan".

$1 Equity Ratio

%his indicates the proportion of total assets pro/ided !" stockholders in/estors5 on an"

gi/en date. It is found out !" di/iding the stockholders e;uit" !" the total assets.


Fareast LI 2004 2005 2006 2007 2008

Total'"are"older1s

30,000,000

75,000,000

90,000,000

99,000,000

138,600,000

Page > 40


43/116

euity

Total Assets 1,090,540,958

1,707,217,380

2,728,802,649

4,316,451,403 64513233

18

3uity Ratio 0.028 0.044 0.033 0.023 0.021

%a!le

%his is a desira!le e;uit" ratio from the point of creditors. oe/er1 life insurance

companies do not ha/e man" creditors. %heir !usiness is run on the life insurance fund

made up of all the premiums collected. %his anal"sis shos that the polic"holders are

going to get most of the assets in case the compan" ent don. %his le/erage ill surel"

attract polic"holders ho ill feel secured a!out their claims. %he ratio has remained lo

o/er the "ears ranging from 0.044 in -00( to 0.0-' in -00. Perhaps in -0041 the

compan" had less num!er of polic"holders and in -00( that num!er increased hile the

num!er of shareholders remained stead".


e!"na LI 2004 2005 2006 2007 2008

Total'"are"older1seuity

30,000,000

75,000,000

75,000,000

75,000,000 93,750,000


1,640,532,367

2,421,015,588

3,428,383,600

4,747,339,568

3uity Ratio 0.028 0.046 0.031 0.022 0.020

Page > 4'


44/116

%he compan"s e;uit" ratio is fluctuating ith a huge rise in -00( and then falling again

in -008. &ince -0081 it has !een slol" decreasing. %his is promising to the polic"holders

ho has claim o/er the assets after the e;uit" holders. In -00(1 the compan" had its

highest e;uit" ratio possi!l" due a higher rate of increase of shareholders e;uit"

compared to the rate of increase of polic"holders. In -001 the ratio came don to

0.0-0.


National LI 2004 2005 2006 2007 2008


45,000,000

51,750,000

64,687,500

77,625,000 93,150,000


6,466,832,539

8,574,310,703

10,763,219,986

13135924371

3uity Ratio 0.009 0.008 0.008 0.007 0.007

Page > 4-


45/116

#ational life insurance has maintained a stead" e;uit" ratio. %hough stead" the ratio has

!een consistentl" lo. It has graduall" fallen from 0.009 in -004 to 0.00+ in -00. %hus1

this compan" is sending a sta!le image to its polic"holders. %his is a good compan" to

!u" policies from.


#o$ular LI 2004 2005 2006 2007 2008


30,000,000

75,000,000

75,000,000

75,000,000 90,000,000

Total Assets 419,705,249

1,054,542,780

2,096,968,678

3,805,048,031

6,300,791,029

3uity Ratio 0.071 0.071 0.036 0.020 0.014

Page > 43


46/116

Popular 7I initiall" attracted fe polic"holders as e can see most of its assets ere

co/ered !" the shareholders e;uit". %his has sharpl" fallen in -008 to 0.038. It

continued to fall and in -00 the e;uit" ratio as a mere 0.0'4. From a polic"holders

perspecti/e1 this compan" is doing ell.


#ra!ati LI 2004 2005 2006 2007 2008


30,000,000

75,000,000

75,000,000

75,000,000 75,000,000


2,149,016,125

749,077,374

959,350,453

1,253,563,120

3uity Ratio 0.117 0.035 0.100 0.078 0.060

Page > 44


47/116

Pragati had a lo e;uit" ratio to !egin ith. In -0041 the ratio as 0.''+ and then it

sharpl" fell to 0.03( in -00(. In the same fashion1 it took a leap in -008 to 0.'00. %hen

it continued to fall in the folloing "ears until in -00 the ratio as 0.080. %his is also a

good compan" to !u" policies from.


#ri%e Isla%i LI 2004 2005 2006 2007 2008


30,000,000

30,000,000

30,000,000

75,000,000 90,000,000


271,067,715

1,923,755,907

975,751,846

1,568,282,680

3uity Ratio 0.219 0.111 0.016 0.077 0.057

Page > 4(


48/116

Prime Islami had an e;uit" ratio of 0.-'9 in -004 and then the ratio kept falling till -008.

In -0081 it recorded its loest e;uit" ratio of 0.0'8 onl". %his as /er" difficult to

manage since ha/ing /er" little e;uit" means there is higher chances of financial

distress. %hus1 the compan" has slol" !uilt up this ratio to a safe position in -00 to

0.0(+.


#ro!ressi&e LI 2004 2005 2006 2007 2008Total'"are"older1seuity

30,000,000

75,000,000

75,000,000

75,000,000 75,000,000


322,192,018

399,989,576

616,871,892

993,981,689

3uity Ratio 0.208 0.233 0.188 0.122 0.075

Page > 48


49/116

Progressi/e 7I had an e;uit" ratio of 0.-0 in -004. %hen it rose to 0.-33 in -00(. fter

that1 the ratio has fallen graduall". nd in -001 it had an e;uit" ratio of 0.0+(. %his is a

!alanced e;uit" ratio hich is enough to attract polic"holders ho are the main source of

income for these companies.


Ru$ali LI 2004 2005 2006 2007 2008


30,000,000

30,000,000

30,000,000

30,000,000 30,000,000


342,584,710

511,447,964

788,605,809876426378

3uity Ratio 0.125 0.088 0.059 0.038 0.034

Page > 4+


50/116

*upali 7I had an e;uit" ratio of 0.'-( in -004. &ince then1 the ratio has fallen steadil"

and in -001 it had an e;uit" ratio of 0.034 onl". /er" lo e;uit" ratio is good for

polic"holders since the" ha/e more stakes in the compan"s assets.


'and"ani LI 2004 2005 2006 2007 2008


34,200,000

39,672,000

47,606,400

57,127,680 71,409,600


1,390,385,954

1,979,456,799

2,964,694,168

4,127,749,412

3uity Ratio 0.035 0.029 0.024 0.019 0.017

&andhani 7I had an e;uit" ratio of 0.03( in -004. %his has slol" fallen o/er the ne6t

four "ears. In -001 the e;uit" ratio as 0.0'+. %his is a good sign for the compan" as it

is attracting premium income from polic"holders and thus reducing the amount of total

assets contri!uted !" the e;uit" holders.


Co%$any 3uity ratio

National LI 0.007Fareast LI 0.021

e!"na LI 0.020

#o$ular LI 0.014

#ra!ati LI 0.060

#ri%e Isla%i LI 0.057#ro!ressi&e LI 0.075

Page > 4


51/116

'and"ani LI 0.017

Ru$ali LI 0.034

s e can see1 the e;uit" ratios for most companies are ithin 0.030. &ome companies

tend to ha/e higher e;uit" ratio such as Pragati1 Prime Islami and Progressi/e. %he" are

attracting less num!er of polic"holders than the other companies. #ational is doing /er"

ell ith the loest e;uit" ratio of 0.00+.

$$ Shareholders) Equity to De*t ratio

%his ratio is "et another measure of the relati/e e;uities of oners and creditors. It

shos the num!er of taka of stockholders e;uit" to one taka of total de!t.


Fareast LI 2004 2005 2006 2007 2008


30,000,000

75,000,000 90,000,000

99,000,000

138,600,000

TotalLiabilities

181,336,062

185,471,781

262,677,287

240,572,627

410,117,714

ebt to3uity Ratio

6.0445354

2.47295708

2.918636522

2.430026535

2.959002266

Page > 49


52/116

Fareast has a high de!t to e;uit" ratio. In -0041 the De!t2to2e;uit" ratio as 8.044. In

the ne6t "ear1 it fell to -.4+. %hen it rose in -00( to -.9'. %his ratio has fallen again in

-00+ to -.43. nd in -001 the ratio as -.98. %his is fluctuating from "ear to "ear. It

has -.98 taka in e;uit" for e/er" taka lia!ilities.


e!"na LI 2004 2005 2006 2007 2008

Total'"are"older1s euity

30,000,000

75,000,000

75,000,000

75,000,000

93,750,000

TotalLiabilities 181,080,808 265,474,351 332,695,914 411,052,781 494,499,981

ebt to3uity Ratio

6.036026933

3.539658013

4.43594552

5.480703747

5.274666464

Page > (0


53/116

In this compan"1 the De!t2to2e;uit" as 8.038 in -004. %hen in -00(1 the ratio

decreased !" almost half to 3.(98.It rose to 4.438 in -008 and then e/en higher in -00+

to (.4'. In -001 it decreased to (.-+(. It has (.-+( taka in e;uit" for e/er" taka

lia!ilities.


National LI 2004 2005 2006 2007 2008


45,000,000

51,750,000

64,687,500

77,625,000

93,150,000

TotalLiabilities

834,003,976

1,010,761,872

1,364,847,472

1,592,600,182

1,633,149,615

ebt to 3uityRatio

18.533 19.532 21.099 20.517 17.532

In this compan"1 the De!t2to2e;uit" as 18.533 in -004. %hen in -00(1 the ratio rose to

19.532. It rose to 21.099 in -008 and then fell slightl" to -0.('+ in -00+. In -001 it

decreased to 17.532. It has 17.532 taka in e;uit" for e/er" taka lia!ilities. It has /er"

high le/erage o/erall. %hus1 it is taking feer risks.


#o$ular LI 2004 2005 2006 2007 2008


30,000,000

75,000,000

75,000,000

75,000,000

90,000,000

TotalLiabilities

101,068,553

117,217,510

89,997,640

81,671,688

129,892,448

ebt to

3uityRatio

3.36895176

7

1.5629001

33

1.1999685

33

1.0889558

4

1.4432494

22

Page > ('


54/116

In -0041 the compan" had a debt-to-equity ratio of 3.37. In 2005, the ratio fell to

1.56 and even loer in 2006 to 1.199. In 2007, it fell even loer to 1.089. In

2008, the ratio ro!e a"ain to 1.44.


#ra!ati LI 2004 2005 2006 2007 2008


30,000,000

75,000,000

75,000,000

75,000,000

75,000,000

TotalLiabilities

50,010,527

1,783,623,988

137,936,153

89,686,023

119,702,591

ebt to3uityRatio

1.667017567

23.78165317

1.839148707

1.19581364

1.596034547

Page > (-


55/116

In -0041 the ratio as '.88+. %hen in -00(1 it rose sharpl" to -3.+'. In -0081 it fell Gust

as dramaticall" to '.9'. %hen it fell e/en more in -00+ to '.'98. In -001 the ratio

ent up to '.(9 again. &o1 the compan" has '.(9 taka for e/er" taka lia!ilit".


#ri%e Isla%iLI

2004 2005 2006 2007 2008


30,000,000

30,000,000

30,000,000

75,000,000

90,000,000

TotalLiabilities

14,196,772

28,798,588

1,455,112,500

52,629,766

90,046,570

ebt to3uity Ratio

0.473225733

0.959952933

48.50375 0.701730213

1.000517444

Page > (3


56/116

In -0041 the de!t2to2e;uit" ratio as onl" 0.4+3. %hen in -00(1 the ratio rose to 0.9(9.

In -0081 the ratio as the highest ith 4.(03. In -00+1 it fell again to 0.+0'. In -001

the ratio as '.000. &o1 for e/er" taka of lia!ilit" or de!t1 there is '.000 taka of e;uit".


#ro!ressi&eLI

2004 2005 2006 2007 2008


30,000,000

75,000,000

75,000,000

75,000,000

75,000,000

TotalLiabilities

40,536,947

87,453,375

50,346,897

48,934,009

49,922,497

ebt to3uity Ratio

1.351231567

1.166045 0.67129196

0.652453453

0.665633293

In -0041 the de!t2to2e;uit" ratio as '.3('. %hen in -00(1 the ratio as '.'88 hich fell

to 0.8+' in -008. It fell e/en more in -00+ to .8(-. %hen it rose slightl" to 0.88( in

-00. For e/er" ' taka lia!ilit"1 there is 0.88( taka e;uit" onl". &o1 the compan" is

hea/il" le/ered.


Ru$ali LI 2004 2005 2006 2007 2008


30,000,000

30,000,000

30,000,000

30,000,000

30,000,000

TotalLiabilities

30,626,344

33,131,332

20,672,019

13,701,179

17,422,876

ebt to3uity Ratio

1.020878133

1.104377733

0.6890673 0.456705967

0.580762533

Page > (4


57/116

In -0041 *upali had a de!t2to2e;uit" ratio of '.0-'. In -00(1 the ratio rose to '.'04

hich as the highest in all the fi/e "ears the data as taken. %hen in -0081 the ratio

fell to 0.89 and e/en loer in -00+ to 0.4(+. In -001 it rose slightl" to 0.(0. For

e/er" ' taka lia!ilit" the compan" has 0.(0 taka of e;uit" onl".


'and"ani LI 2004 2005 2006 2007 2008

Total

'"are"older1seuity

34,

200,000

3

9,672,000

4

7,606,400

5

7,127,680

7

1,409,600

TotalLiabilities

231,184,384

248,237,210

265,171,476

274,734,053

287,790,249

ebt to3uity Ratio

6.75977731

6.257239615

5.570080409

4.809123231

4.03013389

Page > ((


58/116

In -0041 the ratio as 8.+(9. %hen in -00(1 it fell slightl" to 8.-(+. In -0081 it fell e/en

more to (.(+0. It continued to fall graduall" and in -001 the ratio as 4.030. &o1 for

e/er" taka of lia!ilit"1 there as 4.030 taka of e;uit".


Co%$any ebtto 3uityratio

National LI 17.532


e!"na LI 5.274666464

#o$ular LI 1.443249422

#ra!ati LI 1.596034547

#ri%e Isla%i LI 1.000517444

#ro!ressi&e LI 0.665633293

'and"ani LI 4.03013389

Ru$ali LI 0.580762533

Page > (8


59/116

s e can see1 the companies are in general ha/ing lo de!t2to2e;uit" ratio. Lnl"

#ational 7I has a /er" high de!t to e;uit" ratio. It is hea/il" financed !" e;uit". Lther

companies are riding more on de!t instruments.

& +rofita*ility Ratio

Profita!ilit"1 i.e. a!ilit" of a compan" to earn profits1 is an important measure of a

compan"s operating success. Eenerall"1 e are concerned ith to areas hen Gudging

profita!ilit" H a. *elationships on the income statement that indicates a compan"s a!ilit"

to reco/er costs and !. *elationships of income to /arious !alance sheet measures that

indicate the compan"s relati/e a!ilit" to earn income on assets emplo"ed.

Present compan" in/estors and potential compan" in/estors are !oth interested in the

profita!ilit" of companies. %hese in/estors ish to predict future di/idends and changes

in the market price of the compan"s common stock. &ince !oth di/idends and price

changes are likel" to !e influenced !" earnings1 in/estors ma" seek to predict earnings1

hich is possi!le once the" take into account the compan"s profita!ilit" record.

&1 Rate of Return on Assets ,R-A.

%his ratio shos the relationship of net operating income to operating assets1 and is the

!est measure of earnings performance ithout regard to the sources of assets. *L

shos the earning poer of the compan" as a !undle of assets. It e6cludes all the non

operating assets and non operating income elements1 and !" doing so1 it measures the

profita!ilit" of the compan" in terms of carr"ing out its primar" !usiness functions.

Page > (+


60/116


Fareast LI 2005 2006 2007 2008

Net

in*o%e

566,972,608 928,912,206 1,600,097,885 1,924,465,918

A&era!e

Total Asset

1,398,879,169

2,218,010,015 3,522,627,026 5,383,887,361

RA 0.405304919 0.418804334 0.454234261 0.357449142

In -00(1 the compan" had *L of 0.40( hich slol" rose and in -00+1 it reached

0.4(4. In -001 this ratio fell a little !it to 0.3(+. *L has slightl" fallen and this is

resulting from lo turno/er1 indicating poor asset management1 and lo profit margin.

oe/er1 0.3(+ is still a /er" high ratio and the compan" is doing ell.


e!"na LI 2005 2006 2007 2008

Net in*o%e 450,110,579

713,261,658 929,011,145 1,216,758,76

8

A&era!e TotalAsset

1350780306 2030773978 2924699594 4087861584

RA 0.33322264 0.351226511 0.317643271 0.297651656

Page > (


61/116

In -00(1 the ratio as 0.33 and it had risen in -008 to 0.3('. oe/er1 in -001 the

ratio fell to a 0.-9+. %his is !ad asset management in the recent "ears.


National LI 2004 2005 2006 2007 2008

Net in*o%e 1,123,923,262

1,415,918,452

1,733,691,846

1,947,073,518

2,322,401,362

A&era!e TotalAsset

4,245,836,076

5,667,645,034

7,520,571,621

9,668,765,345

11,949,572,179

RA 0.264711883

0.249824829

0.230526605

0.201377678

0.194350168

Page > (9


62/116

%he *L is consistentl" falling for #ational 7I. %his is not a good sign as the return on

asset is decreasing. In -001 the" has a *L of 0.'94 hich is /er" lo compared to the

peer companies.


#o$ular LI 2005 2006 2007 2008

Net in*o%e 573,688,574

1,069,645,768

1,716,405,305

2,432,522,238

A&era!e TotalAsset

737,124,015

1,575,755,729

2,951,008,355

5,052,919,530

RA 0.7782796 0.6788145 0.5816335 0.4814093

In this compan"1 the *L is again seen to !e declining. In -00(1 it had an *L of 0.++.

,ut in -001 this came don to 0.4'. oe/er1 it is still !etter than man" companies in

this industr".


#ra!ati LI 2005 2006 2007 2008

Net in*o%e 113,886,817

245,749,084 258,523,209 264,196,099

A&era!e TotalAsset

1,202,765,986

1,449,046,750

854,213,914 1,106,456,787

RA 0.09468742

7

0.16959362 0.302644578 0.238776699

Page > 80


63/116

%his compan" has a promising trend of *L. %he return on asset has increased from

0.094 in -00( to 0.30- in -00+. nd in -00 it has fallen again to 0.-39. %he compan"

needs to look at a"s to make their assets more producti/e.


#ri%e Isla%iLI

2005 2006 2007 2008

Net in*o%e

119,607,030

226,374,280 409,478,673 540,114,030A&era!e TotalAsset

203,963,292

1,097,411,811

1,449,753,877

1,272,017,263

RA 0.586414491

0.206280156 0.282447027 0.424612185

Page > 8'


64/116

Prime 7I started off ith a /er" good *L in -00( ith 0.(8 hich the" could not hold

on to. %his fell !" almost half in -008 to 0.-08. %hen it slightl" rose to 0.-- in -00+ and

in -001 the management has taken good steps as the *L has come up to 0.4-4 or

4-.


#ro!ressi&e LI

2004 2005 2006 2007 2008

Net in*o%e 45,520,816

85,856,595

114,539,870

218,799,667

375,587,574

A&era!eTotal Asset

117,165,808

233,165,183

361,090,797

508,430,734

805,426,791

RA 0.3885162

15

0.3682221

94

0.31720517

7

0.43034311

7

0.46632118

3

Page > 8-


65/116

In -0041 the *L as 3. hich increased to 38. in -00(. It remained

consistentl" highl" o/er the fi/e "ear period and in -001 the return on asset as

48.8. %his compan" is good in managing their assets.


Ru$ali LI 2004 2005 2006 2007 2008

Net in*o%e 61,480,992

100,275,923

181,483,754

284,206,930

84,098,872

A&era!eTotal Asset

209,662,393

291,243,097

427,016,337

650,026,887

832,516,094

RA 0.293238053

0.344303175

0.425004241

0.437223346

0.101017713

Page > 83


66/116

In -0041 *upali 7I had an *L of -9.3 hich slol" rose o/er the "ears to reach

43.+ in -00+. oe/er1 in -00 something ent rong as the *L fell to '0.'. %hen

in -009 the" ha/e enlisted themsel/es in stock e6change ith 40 shares held !" the

sponsors and 80 held !" general pu!lic.


'and"ani LI 2004 2005 2006 2007 2008

Net in*o%e 237,060,960

401,031,695

554,680,899 904,179,095 1,109,845,98

9

A&era!e TotalAsset

817,553,630

1,178,607,694

1,684,921,377

2,472,075,484

3,546,221,790

RA 0.289963804

0.340258847

0.329202838 0.365757074 0.312965758

Page > 84


67/116

In -0041 the *L of &andhani as -.99 hich then rose slol" o/er the "ears to

reach 38.( in -00+. %hen in -001 the rate of return came don to 3'.3.


Co%$any RA

National LI 0.194350168


e!"na LI 0.297651656

#o$ular LI 0.481409257#ra!ati LI 0.238776699

#ri%e Isla%iLI

0.424612185

#ro!ressi&eLI

0.466321183

'and"ani LI 0.312965758

Ru$ali LI 0.101017713

Page > 8(


68/116

%he industr" as a hole has performed less efficientl" in -00 compared to the pre/ious

"ears. %he !est performing compan" as Popular 7IC ith 4.' *L folloed closel"

!" Progressi/e 7IC ith an *L of 4-.(. *upali had the loest *L of onl" '0.'.

&$ Rate of Return on Equity ,R-E.

%his is the rate of return on the mone" oned !" the common stockholders.

From the in/estors point of /ie1 this is an important measure of the income2producing

a!ilit" of a compan"1 !ecause it tells them hat return is earned !" the compan" on

each taka of stockholders e;uit" in/ested.


Fareast LI 2005 2006 2007 2008

Net in*o%e 566,972,608

928,912,206

1,600,097,885

1,924,465,918

A&! s"are"older1seuity

52,500,000

82,500,000

94,500,000

118,800,000

R3 10.79947825

11.25954189

16.93225275

16.19920806

Page > 88


69/116

Fareast is graduall" increasing their return on e;uit". In -00(1 the" had onl" '0. *L=

hile in -001 this increased to '8.-. %his is a good sign for the compan" since the

e;uit" holders are getting more.


e!"na LI 2005 2006 2007 2008

Net in*o%e 450,110,57

9

713,261,65

8

929,011,14

5

1,216,758,

768A&! s"are"older1seuity

52,500,000

75,000,000

75,000,000

84,375,000

R3 8.573534838

9.51015544

12.38681527

14.42084466

Page > 8+


70/116

In terms of *L=1 Meghna 7I is shoing a slo rise in their profita!ilit". In -00(1 the" had

an *L= of onl" .(+ hile in -001 their *L= rose to '4.4.


National LI 2004 2005 2006 2007 2008

Net in*o%e 1,123,923,262

1,415,918,452 1,733,691,84

6

1,947,073,518

2,322,401,362

A&!s"are"older1seuity

40,500,000

48,375,000 58,218,750

71,156,250

85,387,500

R3 27.751 29.270 29.779 27.363 27.198

#ational 7I had a rising *L= from -004 to -008. oe/er1 the *L= came don in -00+.

In the same period that their *L= came don1 the" had started the construction of #7IC

%oer in Naran ,a$ar. %his ma" ha/e resulted in large cash outflo hose impact on

profita!ilit" ill !e long term. &till1 it is a /er" profita!le compan".


#o$ular LI 2005 2006 2007 2008

Net in*o%e 573,688,574

1,069,645,768

1,716,405,305

2,432,522,238


52,500,000

75,000,000

75,000,000

82,500,000

R3 10.92740141

14.26194357

22.88540407

29.48511804

Page > 8


71/116

%his compan" shos a gradual rise in *L= from -00( to -00. %he compan" had an *L=

of onl" '0.9 in -00( hich increased to -9.( !" -00. %heir !usiness is !ecoming more

profita!le.


#ra!ati LI 2005 2006 2007 2008

Net in*o%e 113,886,81

7

245,749,08

4

258,523,20

9

264,196,09

9A&! s"are"older1seuity

52,500,000

75,000,000

75,000,000

75,000,000

R3 2.169272705

3.276654453

3.44697612

3.522614653

Eraph

Page > 89


72/116

In -00(1 the compan" had an *L= of -.'+. nd this continued to rise. %his shos that

the compan" is highl" le/eraged !" de!t and thus the e;uit" holders are a minorit" here.

%he current *L= is 3.(- in -00.


#ri%e Isla%i LI 2004 2005 2006 2007 2008

Net in*o%e 64,344,811

119,607,030

226,374,280

409,478,673

540,114,030


30,000,000

30,000,000

30,000,000

52,500,000

82,500,000

R3 2.144827033

3.986901 7.545809333

7.799593771

6.546836727

%his compan" also had a lo *L= of -.'4 in -00(. In -001 the *L= as onl" 8.(4. &o1

this compan" is not doing ell compared to the other companies in its industr".


#ro!ressi&e LI 2004 2005 2006 2007 2008

Net in*o%e 45,520,816

85,856,595

114,539,870

218,799,667

375,587,574


30,000,000

52,500,000

75,000,000

75,000,000

75,000,000

R3 1.517360533

1.635363714

1.527198267

2.917328893

5.00783432

Page > +0


73/116

Progressi/e 7I had an *L= of '.(' in -004. In -001 the return on e;uit" rose to (.00.

&till1 the compan" pro/ides less return to e;uit" holders than man" other companies in

the same industr".


Ru$ali LI 2004 2005 2006 2007 2008

Net in*o%e

61,480,992

100,275,923 181,483,754 284,206,930 84,098,872


30,000,000

30,000,000

30,000,000

30,000,000

30,000,000

R3 2.0493664 3.342530767

6.049458467

9.473564333

2.803295733

Page > +'


74/116

*upali 7I had an *L= of -.0( in -004 and in -00+ the" had their highest in the fi/e "ears

anal"$ed ith *L= of 9.4+. oe/er1 in -001 this fell drasticall" to -.0.


'and"ani LI 2004 2005 2006 2007 2008

Net in*o%e 237,060,960

401,031,695

554,680,899

904,179,095

1,109,845,989


32,100,000

36,936,000

43,639,200

52,367,040

64,268,640

R3 7.385076636

10.85747496

12.71061108

17.2661868

17.26885755

In -0041 &andhani 7I had an *L= of +.3. %his has continued to rise and in -00+1 their

*L= as '+.-8. It rose /er" slightl" in -00. %his compan" managed to maintain their

*L= in -00 despite most companies performing poorl" in that "ear.

Page > +-


75/116


Co%$any R3

National LI 27.198Fareast LI 16.19920806

e!"na LI 14.42084466

#o$ular LI 29.48511804

#ra!ati LI 3.522614653

#ri%e Isla%i LI 6.546836727

#ro!ressi&e LI 5.00783432

'and"ani LI 17.26885755

Ru$ali LI 2.803295733

In -001 the most profita!le compan" to in/est in as Popular 7I closel" folloed !"

#ational 7I. %he least profita!le compan" to in/est in as *upali 7I. %herefore it comes

as no surprise that in -0091 *upali 7I enlisted themsel/es in the stock market to raise

capital.

' /ar#et (est Ratios

Certain ratios are computed using information from the financial statements and

information a!out market price of the compan"s stock. %hese tests help in/estors and

potential in/estors assess the relati/e merits of the /arious stocks in the marketplace1

and help them in taking decisions a!out hich companies to in/est1 or hich companies

to keep on holding shares.

Page > +3


76/116

'1 Dividends 0ield on Common Stoc#

%he di/idend paid per share is also of much interest to common stockholders.


77/116

1 /anagement e2pense to premium ratio

%his is a special kind of ratio onl" to measure insurance companies performances. %his

depicts ho much of total management costs are co/ered !" the premiums earned.


Fareast LI 2004 2005 2006 2007 2008

ana!e%ent3$ense

339,962,704

447,933,510

687,058,896

824,252,320

1,182,621,326

Total #re%iu% 756,440,776 1,110,549,035 1,727,890,593 2,386,990,070

3,194,548,005

ana!e%ent3$ense to#re%iu%

44.94# 40.33# 39.76# 34.53# 37.02#

Page > +(


78/116

%he graph shos that management e6pense to premium ratio has !een declining o/er

the "ear. %he ratio came loest in -00+ of 34. It shos that the compan" has !een

efficient enough to keep the difference !eteen re/enue and e6pense higher and thus

keep a considera!le amount of cash surplus in the life insurance fund. Moreo/er1 the

ratio is much loer than the industr" a/erage hich reflects higher efficienc".


e!"na LI 2004 2005 2006 2007 2008

ana!e%ent3$ense

387,072,601

526,557,457

643,387,297

762,303,562

943,456,471

Total #re%iu% 758,960,412 1,067,925,820 1,480,839,303

1,836,537,877

2,308,581,577


51.00# 49.31# 43.45# 41.51# 40.87#

Page > +8


79/116

%he graphs shos that the compan" is tr"ing hard to keep pace ith the rising

management e6penses. %he ratio is graduall" decreasing o/er the "ear1 mainl" due to its

continuous effort to increase its re/enue from premium1

Page > ++


80/116


National LI 2004 2005 2006 2007 2008

ana!e%ent3$ense

1,406,542,

381

1,619,869,

525

1,760,982,

615

1,846,925,

399

2,096,951,

099Total #re%iu% 21203283

8926691822

3731511259

6935341010

1940596903

46


66.34# 60.69# 55.88# 52.26# 51.65#

%hough doing good in other parts1 this compan" is struggling hard to keep pace ith the

management e6penses. %he ratio is a!o/e the industr" a/erage hich shos inefficienc"

in e6panding its num!er of polic"holders.

Page > +


81/116


#o$ular LI 2004 2005 2006 2007 2008

ana!e%ent3$ense

325,699,

770

795,936,

129

1,250,531,

055

1,416,630,

666

1,758,190,

285Total #re%iu% 5000617

561365074

27322505485

8630179689

9139274625

53


65.13# 58.31# 55.57# 46.94# 44.77#

Popular 7ife Insurance Compan" has !een consistent in increasing its num!er of

polic"holders. %he groth of num!er of polic"holders as almost identical as shon in

Page > +9


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the graphs a!o/e. In -00+2-001 the compan" significantl" cur!ed its e6penses hich

lead to loer /alue of the ratio.


)ra!ati LI 2004 2005 2006 2007 2008

ana!e%ent3$ense

119,927,851 179,957,243 269,382,333 317,674,174 499,089,452

Total #re%iu% 231,797,899 345,690,547 552,685,025 563,776,063 725,644,275


51.74# 52.06# 48.74# 56.35#

68.78#

Page > 0


83/116

Pragatis most efficient "ear in terms of this ratio as -008. oe/er as the graph

shos1 the compan"s re/enue from premiums declined drasticall" hich led to increase

in ratio a" a!o/e the industr" a/erage. %he compan" is still struggling to increase its

re/enue.


#ri%e Isla%i LI 2004 2005 2006 2007 2008

ana!e%ent3$ense

113,794,775

210,147,463

324,952,199

388,364,165

468,131,122

Total #re%iu% 182391023

342905712

562328788

815325300

1010209750

ana!e%ent3$ense to #re%iu%

62.39# 61.28# 57.79# 47.63# 46.34#

Page > '


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Prime Islami 7I has /er" graduall" loered their *ana"e+ent en!e to )re+iu+

ratiothroughout the period. Its ratio is loer than industr" a/erage hich is

commenda!le. It is due to the increasing difference !eteen re/enue from premiums

and e6penses.


#ro!ressi&e LI 2004 2005 2006 2007 2008

ana!e%ent3$ense

144,463,565

223,637,989

295,568,746

295,904,634

422,097,142

Total #re%iu% 207962960

338452158

473983179

588051085

832916656

ana!e%ent3$ense to #re%iu%

69.47# 66.08# 62.36# 50.32# 50.68#

Page > -


85/116

Progressi/es ratio is almost the same as industr" a/erage. oe/er1 hats mentiona!le

here is that the" cut !ack their e6penses significantl" in -00+ hich loered the ratios

/alue. oe/er1 the groth of num!er of polic"holder remained identical.


Ru$ali LI 2004 2005 2006 2007 2008

ana!e%ent3$ense

163,265,185

225,619,613

313,640,725

373,268,150

220,161,424

Total #re%iu% 243981459

360769797

553556596

716341531

351095779


66.92# 62.54# 56.66# 52.11# 62.71#

Page > 3


86/116

%he graph shos a /er" interesting fact a!out compan"s present condition. In -00+1 the

compan"s re/enue and e6penses !oth Gumped up1 !ut in -001 its premium re/enue

slacked. *ather than tr"ing to increase re/enue the compan" decided to cut its e6penses

to keep the ratio close to industr" a/erage.


'and"ani LI 2004 2005 2006 2007 2008

ana!e%ent 3$ense 376,357,980 596,004,525 706,866,669

752,961,978 780,746,641

Total #re%iu% 705,995,677 1,120,624,812 1,351,499,678

1,713,230,847 1,902,827,885

ana!e%ent 3$enseto #re%iu%

53.31# 53.19# 52.30# 43.95# 41.03#

Page > 4


87/116

&andhani shos a consistent decline in ratio mainl" due to its re/enue recognition. %he

ratio is a" !elo the industr" a/erage hich is a good indication of compan"s

performance.

13Industry Analysis4

Co%$any ana!e%ent 3$ense to#re%iu%

National LI 51.65#

Fareast LI 37.02#

e!"na LI 40.87#

#o$ular LI 44.77#

#ra!ati LI 68.78#

#ri%eIsla%i LI

46.34#

#ro!ressi&e LI

50.68#

Ru$ali LI 62.71#

'and"aniLI

41.03#

Industrya&era!e

49.32#

s e can see that most companies are near or !elo the industr" a/erage. Lnl" to

companies contri!uted significantl" to keep the ratio go higher a!o/e 4(. If those to

are ignored the industr" a/erage reaches close to 44.

Page > (


88/116

Appendi24

%he items used to calculate certain accounts are gi/en !elo:

Current assets:

1. $a!h, %an/! and other balan(e!2. !undry debtor!3. eferred re+iu+ on %%4. intere!t, dividend a((ruin" but not due5. out!tandin" re+iu+6. !hare!

Current lia!ilities:

1. !undry (reditor!2. roo!ed div3. deferred di!(ount in(o+e4. re+iu+ deo!it!5. $lai+ nder )oli(ie!

R E5ERE6CES4

nnual *eports of #ational 7ife Insurance Co. 7td. -0042-00

nnual *eports of Fareast Islami 7ife Insurance Co. 7td. -0042-00nnual *eports of Meghna 7ife Insurance Co. 7td. -0042-00

nnual *eports of Popular 7ife Insurance Co. 7td. -0042-00nnual *eports of Pragati 7ife Insurance Co. 7td. -0042-00nnual *eports of Prime Islami 7ife Insurance Co. 7td. -0042-00nnual *eports of Progressi/e 7ife Insurance Co. 7td. -0042-00nnual *eports of *upali 7ife Insurance Co. 7td. -0042-00+ and half2"earl" report

of -00nnual *eports of &andhani 7ife Insurance Co. 7td. -0042-00http:.deltalife.org ,usiness Eroth &tatistics -0042-005http:.!usinessdictionar".com

http:.in/estorords.comFinancial *eporting and nal"sis1 CFO P*LE*M C**IC7M. L7M= 3

http:.dse!d.orgdispla"Compan".phpQnameM=E#7IF=http:.dse!d.orgdispla"Compan".phpQname#%7IF=I#&

http:.dse!d.orgdispla"Compan".phpQnamePLP7*7IF

http:.dse!d.orgdispla"Compan".phpQnameP*E%I7IFhttp:.dse!d.orgdispla"Compan".phpQnameP*LE*=&7IFhttp:.dse!d.orgdispla"Compan".phpQnameF*=&%7IFhttp:.dse!d.orgdispla"Compan".phpQname&#D#I#&http:.dse!d.orgdispla"Compan".phpQname*P7I7IF=

http:.dse!d.orgdispla"Compan".phpQnameP*IM=7IF=

5I6A6CIAL S(A(E/E6( I6+7(S4


Balance SheetAmount in Taka 2004 2005 2006 2007 2008

CAPITAL AND LIABILITIES


89/116

SHAREHOLDERS' CAPITAL

Authorised

10,00,000 Ordinary Shares of Tk 100!" ea#h 100,000,000 100,000,000 100,000,000 250,000,000 250,000,000

$ssued, Su%s#ri%ed and &aid"'( 30,000,000 75,000,000 90,000,000 99,000,000 138,600,000

)a*an#e of +und and A##ounts

ife Takafu* +und 878,864,896 1,445,837,504 2,374,749,710 3,974,847,595 5,899,313,513

-e*fare +und 340,000 908,095 1,375,652 2,031,181 3,292,091

Liabilities and Provisions

Amount due to other (ersons or %odies

.arryin/ on $nsuran#e )usiness 2,148,606 3,724,964 2,837,411 3,202,133 4,045,896

stimated ia%i*ities in es(e#t of Outstandin/

#*aims hether due or intimated 19,857,529 18,256,921 57,160,113 46,517,094 39,100,089

oan Adan#e uard 54,000,000 54,000,000 54,000,000

Sundry .reditors 70,416,577 84,148,723 115,263,742 179,909,905 355,622,400

&remium e(osits 34,913,350 25,341,173 33,416,021 10,943,495 11,349,329

181,336,062 185,471,781 262,677,287 240,572,627 410,117,714

Total 1!"!#$!"#% 1&!&1&(%! &%%!)$"

4-/645/40-

645/-2--/8

Amount in Taka

2004 2005 2006 2007 2008

&O&T A: ASSTS

oan

On $nsurer;s &o*i#ies ithin their surrender a*ue 913,351 2,792,696 6,665,480 15,885,586 33,322,544

$nestment At .ost

Shares and %onds 52384890 311575530

Statutory e(osit ith )an/*adesh )ank :$) 4,000,000 4,000,000


90/116

Li*e Reven+e Acco+nt

A,o+nt in Ta-a !!$ !!# 2006 2007 2008

BALANCE O. ./ND AT THE BE0INNIN0O. THE EAR $))&!$)&( %&%%)$%") 1,445,837,504 2.-74.74,.7/0 -.,74.847.5,5

ratio analysis of life insurance_iba

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