Dear All
In 2024, we maintained a steady financial direction, adeptly navigating market fluctuations with resilience and focus. United Insurance experienced significant business growth, exceeding industry benchmarks and showcasing our financial stability. This consistent performance stemmed from our strategic initiatives and a strong dedication to customer service, leading to sustained year-over-year growth in key business segments.
At United Insurance, we hold a steadfast belief that insurance transcends being merely a product; it represents a promise. This promise is upheld with integrity and dedication as we strive to enhance our customers’ value chains continually. Even in the face of challenging market conditions, our commitment to innovation and operational efficiency has allowed us to sustain robust growth and solidify our leadership role within the industry
Gross premium
Achieving a gross premium income of BDT 596.70 million, along with a positive trend in underwriting profit, marks a significant milestone amidst a dynamic business environment. Despite the obstacles, we were able to do satisfactory business, of which marine insurance was the most abundant. We were also able to do other insurance as expected. Hopefully, in 2025, we will be able to do better business than before.
The journey throughout the year was not without challenges. Factors such as the central bank’s US dollar austerity measures, exchange rate fluctuations, regulatory reforms, and a tightened reinsurance market posed considerable obstacles. Nevertheless, we navigated these complexities with strategic agility and resilience.
- Gross Premium: BDT 596.70 million
- Net Premium: BDT 296.03 million
- Profit Before Tax: BDT 168.64 million
- Profit After Tax: BDT 100.64 million
- Underwriting Profit: BDT 82.43 million
- Investment Income: 106.34
How the global market fluctuates
In nominal terms, global premium volume reached USD 6,782 billion in 2022. By 2023, the insurance industry faced significant headwinds, including soaring inflation, geopolitical tensions, rising environmental risks, and capital constraints, creating a perfect storm for commercial insurers. According to the Marsh Global Insurance Market Index, global commercial insurance pricing increased by 3% in 2023.
Pricing models and renewal underwriting encountered dual pressures: accurately forecasting the effects of inflation on goods, wages, and social inflation, while upholding strong risk discipline amid a softening market. Successfully navigating this complex and evolving landscape has become increasingly vital for non-life insurers across the globe.”
Translating operational risk management into actionable practice
At UICL, we recognize that operational risks are constant companions on the path to success. That’s why risk management is embedded into the core of our operations. We take a proactive stance—identifying potential threats such as currency fluctuations and process inefficiencies, assessing their impact and likelihood, and prioritizing effective mitigation strategies. Through continuous monitoring and adaptation, we ensure that our risk framework remains resilient. This vigilant approach protects not only our business and customers but also secures our future.
Credit Rating: A Reflection of Our Financial Strength and Credibility
“I am pleased to report that United Insurance has been awarded an outstanding AAA credit rating, underscoring our resilience and strong financial stability amid Bangladesh’s evolving economic landscape. This achievement is a testament to our expertise in risk management and our steadfast commitment to maintaining a sound financial position that supports sustained growth and stakeholder confidence.
These exceptional credit ratings, assigned by Credit Rating Information Services Limited (CRISL), highlight our adherence to the highest standards of corporate governance, financial discipline, and risk control. They reinforce the trust our valued stakeholders—including customers, investors, and regulators—place in our long-term stability and sustainability. We take great pride in this recognition, which affirms our strong institutional fundamentals, strategic direction, and our continued dedication to creating value while contributing to national economic progress.”
Overview of the Non-Life Insurance Market in Bangladesh
According to data from the Swiss Re Institute, Statista, and the Sigma Report, Bangladesh’s non-life insurance industry continued its upward trajectory in 2024, fueled by economic growth and rising awareness of risk management. The gross written premium (GWP) for the sector reached approximately USD 433.67 million, reflecting a year-over-year growth of 12.8%. Additionally, the number of policies issued rose to 1.21 million, indicating a 3% increase from the previous year.
However, the industry also faced notable challenges, particularly in claims settlement. Total claims surged to USD 123.42 million a 38.2% increase—while the claim settlement ratio stood at 35%, highlighting room for improvement in operational efficiency.
Despite these growth indicators, insurance penetration in Bangladesh remains significantly low. The non-life insurance sector contributes only a modest share to the overall insurance market, with an insurance penetration ratio of just 0.5%, far below global averages and neighboring countries such as India (4.0%), Sri Lanka (1.2%), and Pakistan (0.8%).
Looking ahead, projections suggest strong growth potential for the non-life insurance market, with the GWP expected to reach USD 6.09 billion by 2025. This anticipated expansion is driven by factors including accelerating urbanization, continued economic development, and an expanding middle class seeking financial protection against emerging risks.”
Despite numerous challenges, 46 non-life insurance companies collectively settled insurance claims amounting to Tk 1,237 crore in 2024. The overall claims settlement rate stood at 32 percent, with United Insurance alone achieving an impressive rate of 83.55 percent in 2024.
Our Achievements and Growth
As United Insurance marks 40 years of dedicated service, the company remains steadfast in its mission to achieve sustainable growth, deliver exceptional customer service, and create long-term value for its stakeholders. Guided by its core value of ‘customer focus,’ United Insurance has consistently supported its clients through both challenges and milestones, earning a reputation as one of the most trusted non-life insurance providers in the country.
In 2024, despite global economic headwinds, the company demonstrated strong financial resilience and notable growth. Key performance highlights include.
Our Core Strengths and Path to Sustainable Growth
United Insurance continues to distinguish itself through its enduring strengths and steadfast commitment to sustainable growth. With a customer-first mindset, innovative offerings, and a team of skilled professionals, we consistently deliver value and earn trust. Our emphasis on prudent risk management, financial stability, and ethical business practices ensures long-term resilience and positions us to thrive in an ever-evolving market landscape—all while contributing meaningfully to the national economy.
Key Pillars of Our Strength:
- Smooth Claims Payment: Our insurance claims payment process is efficient and customer-friendly, with a highly satisfactory settlement rate. In the last year, we achieved a claims payment rate of 83.55%.
- Industry Leadership: Renowned for innovation and trust, we continue to lead the non-life insurance sector.
- Robust Claims Process: A streamlined, transparent, and efficient claims settlement system ensures customer satisfaction and confidence.
- Skilled Workforce: A highly trained and dedicated team drives operational excellence and customer service.
- Strong Corporate Governance: We uphold transparency, accountability, and integrity at every level of the organization.
Enhancing IT Infrastructure and Controls: Safeguarding Data Privacy and Cyber security
United Insurance has implemented a comprehensive and resilient IT infrastructure to ensure secure, efficient, and uninterrupted operations. The company employs advanced cyber security tools—including firewalls, encryption protocols, and automated risk management systems—to protect sensitive data and maintain operational resilience. Regular audits and compliance reviews are conducted to uphold system integrity and ensure alignment with regulatory standards.
Data privacy remains a top priority, with strict adherence to legal frameworks to safeguard customer information from unauthorized access. Continuous system upgrades and targeted employee training further enhance the overall cyber security posture, creating a secure digital environment for policyholders.
Recognizing the growing importance of cyber security in today’s business landscape, the Board of Directors has embedded cyber security risk oversight into its governance framework.
We are deeply thankful to everyone who has contributed to our success.
The exceptional leadership and guidance of our esteemed Board of Directors have fostered a culture of sound and strategic decision-making. We are truly grateful for their wisdom and continued engagement.
Our sincere appreciation also goes to our dedicated colleagues—the backbone of our organization. Their hard work, resilience, and commitment have been pivotal in driving our collective success and achieving our shared objectives.
We are equally thankful to our valued customers for their continued trust and confidence. Their loyalty is a testament to the quality of service we are committed to delivering every day.
Finally, I extend heartfelt gratitude to our shareholders. Your unwavering support and belief in our vision fuel our ambition for sustainable growth and long-term value creation.
With sincere appreciation,
Khawja Manzer Nadeem
Chief Executive Officer
