Message From Chairman

Bismillahir Rahmanir Rahim,
Assalamu Alaikum,

Dear Shareholders,

It is with great pleasure, I welcome you at the 36th Annual General Meeting of Federal Insurance Company Limited and present to you the Annual Report of 2023. It is an honor to address you today with aspirations marked with challenges and opportunities, I feel proud to report, Federal Insurance has remained committed to excellence, innovation, and customer-centric service.

On behalf of the Board of Directors, I express my heartfelt thanks and gratitude to you all for your continued support and co-operation. I would like to mention here that your confidence and trust on us have helped Federal Insurance Company Limited to become a dependable insurance company in the country.

Geopolitical conflicts, rising  inflation, interest rate pressure, climate change, and unpredictable market disruptions have significantly influenced the operating environment in which we operate. These multifarious challenges have unveiled the importance of adaptability, agility, and foresight in navigating through uncertainties.

Despite the prevailing geopolitical tensions and economic uncertainties, Federal Insurance has been delivering value to our stakeholders with upholding the highest standards of integrity and professionalism.

Our focus on maintaining a balanced and resilient investment portfolio has positioned us well to navigate through volatile market conditions and deliver sustainable long-term returns to our shareholders.

Climate change represents one of the most significant challenges of our time, with far-reaching implications for the insurance industry and society as a whole. Federal Insurance is committed to addressing the risks associated with climate change through proactive risk assessment, product innovation, and stakeholder engagement. We recognize the importance of integrating environmental, social, and governance (ESG) considerations into our business practices to mitigate climate-related risks and contribute to a more sustainable future.

Furthermore, the COVID-19 pandemic has underscored the importance of digitalization and agility in responding to evolving customer needs and market dynamics. We have accelerated our digital transformation initiatives to enhance operational efficiency, improve customer engagement, and capitalize on emerging opportunities in the digital ecosystem.

The year 2023 was a good year for the non-life insurance industry in Bangladesh in general. In the January to September period, the overall general insurance business grew around 20% over the last year. Usually, general insurers provide services to their clients in re, marine, engineering, motor, aviation insurance, overseas Mediclaim, and miscellaneous areas. The Insurance Development and Regulatory Authority (IDRA) has introduced several reforms during this financial year, to expand the insurance market and increase insurance penetration, encouraging rollout of innovative and customized products, modification in the sandbox, endorsement of Bancassurance and issued Corporate Governance Guideline for Insurance companies. These initiatives are truly transformative and will certainly help to improve insurance penetration, thus benefitting the entire insurance world.

We believe that our skilled manpower is dedicated to responding to customers’ requirements with utmost sincerity, transparency and efficiency. Therefore, fostering appropriate human resources remains one of our key priorities to be able to serve customers in a better way and establish a competitive edge over our competitors. We used equal attention in launching our latest IT infrastructure and stretched network coverage to its optimum capacity.

During the year in report, despite of various headwinds, our company has earned gross premium income BDT 664.68 million (BDT 678.05 million in 2022) and net premium income BDT 333.55 million (BDT 372.20 million in 2022). Net claims remained manageable at BDT 103.96 million during the year (BDT 91.60 million in 2022) that drove our underwriting profit to BDT 147.47 million (BDT 141.25 million in 2022). Furthermore, a reasonable investment income of BDT 31.68 million (BDT 25.91 million in 2022). Our profit after tax BDT 68.19 million (BDT 73.48 million in 2022).

Looking ahead, we remain cautiously optimistic about the prospects for Federal Insurance amidst ongoing uncertainties and challenges. Guided by our core values of integrity, transparency, and customer-centricity, we are confident in our ability to navigate through turbulent situations and emerge stronger and more resilient.

In conclusion, I would like to express my sincere gratitude to our esteemed shareholders, valued customers, dedicated employees, and Insurance Development and Regulatory Authority (IDRA), Bangladesh Bank, Bangladesh Securities & Exchange Commission (BSEC), Bangladesh Insurance Association (BIA), Registrar of Joint Stock Companies and Firms, the DSE & CSE, CDBL and other stakeholders for their unwavering support and trust in Federal Insurance. Together, we will continue to overcome challenges, seize opportunities, and create sustainable value for all our stakeholders.

 

May Almighty Bless us always.
Warm Regards,

Enamul Hoq
Chairman