Dear All,
I extend my heartfelt gratitude for your continued trust and unwavering support. It is a privilege to present before you the financial statements and performance overview for the year ended 2024.
With over 45 years of experience in guiding United Group into one of the nation’s most respected and diversified conglomerates—making transformative contributions across the power, infrastructure, retail, education and healthcare sectors—I now bring the same vision and values to United Insurance. My commitment remains steadfast in fostering a culture of integrity, innovation, and sustainable growth as we position United Insurance for long-term excellence.
Economic and Industry Outlook
In 2024, Bangladesh’s non-life insurance industry witnessed steady growth, underpinned by broader economic expansion and a rising awareness of risk management. According to data from Swiss Re Institute, Statista, and the Sigma Report, the sector’s Gross Written Premium (GWP) reached approximately USD 433.67 million—a 12.8% increase over the previous year. Policy issuance also rose to 1.21 million, reflecting 3% growth year-on-year.
However, the industry faced considerable challenges, particularly in claims settlement. Total claims surged by 38.2% to USD 123.42 million, while the claim settlement ratio remained at 35%, underscoring the need for enhanced operational efficiency.
Despite encouraging growth figures, non-life insurance penetration in Bangladesh remains relatively low at 0.5%, significantly below the global average and neighboring countries like India (4.0%), Sri Lanka (1.2%), and Pakistan (0.8%). This highlights a clear opportunity for sectoral expansion and deeper market engagement.
Regulatory Landscape
The Insurance Development and Regulatory Authority (IDRA) has introduced corporate governance guidelines aimed at fostering transparency and accountability in the industry. While the impact of these measures has been limited thus far, we remain hopeful that consistent regulatory oversight will drive the much-needed discipline and fair competition across the sector.
Company Performance Highlights
United Insurance Company Limited delivered a resilient and commendable performance in 2024, demonstrating our commitment to quality growth, sustainable business practices, and customer-centricity. Key performance indicators for 2024 include:
- Premium Income: BDT 596.70 million
- Profit After Tax: BDT 100.64 million
- Earnings Per Share (EPS): BDT 2.26
- Dividend: 15% Cash
- Net Asset Value per Share: BDT 30.59
- Investment Portfolio: BDT 1,085.52 million
Our underwriting profit rose to BDT 82.43 million from BDT 65.86 million in 2023. Income from investments and other sources stood at BDT 106.34 million. As a result, net profit increased to BDT 100.64 million, up from BDT 79.15 million in the previous year. In light of this strong performance, the Board is pleased to recommend a 15% cash dividend for the year 2024—an increase from last year’s 10%.
Credit Rating Achievement
It is a matter of pride to announce that United Insurance has been awarded the prestigious ‘AAA’ credit rating by Credit Rating Information Services Limited (CRISL). This recognition reflects our sound financial standing, robust risk management practices, and unwavering commitment to excellence.
The AAA rating affirms our ability to meet financial obligations reliably, and it reinforces stakeholder confidence in our prudent growth strategies, strong asset quality, and governance discipline.
Board Performance and Governance
I extend my heartfelt appreciation to our Board of Directors for their strategic leadership and unwavering commitment to governance excellence. Their insightful oversight and proactive decision-making have been instrumental in navigating economic headwinds and driving sustainable growth.
In 2024, the Board focused on:
- Strengthening corporate governance and risk oversight
- Enhancing compliance and ethical standards
- Aligning strategic goals with long-term sustainability
These efforts have led to improved operational efficiency, enhanced financial performance, and greater trust among stakeholders.
Looking Ahead: 2025 and Beyond
The Bangladesh Government has revised its GDP growth projection for 2025 to 5.5%, down from an earlier estimate of 6%, amid ongoing economic challenges. Meanwhile, the Asian Development Bank (ADB) projects GDP growth of 3.9% in FY2025, with an expected recovery to 5.1% in FY2026.
Despite these headwinds, we remain cautiously optimistic and committed to navigating the evolving landscape with resilience, innovation, and agility.
Acknowledgements
On behalf of the Board, I express our deep gratitude to the Ministry of Finance, Insurance Development & Regulatory Authority (IDRA), Bangladesh Bank, Bangladesh Securities and Exchange Commission (BSEC), and Dhaka Stock Exchange Limited for their continued guidance and support.
I also extend my sincere thanks to our stakeholders, co-insurers, reinsurers, and well-wishers. I am especially grateful to my fellow Board members for their stewardship, and to all employees of United Insurance for their dedication and unwavering commitment.
Let us move forward together with renewed purpose as we celebrate four decades of excellence and prepare for the opportunities ahead.
Khandaker Moinul Ahsan
Chairman
