DEAR SIR,

Assalamu alaikum wa rahmutullahi wa barakatuhu.

Four decades of building United Group into a diversified national conglomerate across power, infrastructure, retail, education, and healthcare have reinforced one enduring belief: that principled leadership creates lasting value. That belief drives everything we do at United Insurance, as we pursue a future defined by integrity, innovation, and sustainable excellence.

ECONOMIC AND INDUSTRY OUTLOOK

The global economic outlook for 2026 points to moderate but sustained growth. The International Monetary Fund projects global GDP expansion of approximately 3.3 percent, while the United Nations estimates slightly lower growth of around 2.7 percent — both below the pre-pandemic average. Growth will be underpinned by continued investment in technology, relatively accommodative financial conditions, and private sector resilience, though geopolitical tensions, trade policy uncertainty, and subdued regional investment remain constraining factors. Inflationary pressures are expected to ease further in 2026, offering some relief to households and businesses, though the pace of disinflation will vary across economies. Advanced economies are likely to experience modest expansion; emerging and developing economies particularly in Asia are expected to outperform, driven by stronger domestic demand and structural reform. The overall outlook for 2026 is stable but subject to downside risks, reinforcing the case for prudent fiscal management, structural reform, and sustained policy coordination.

Bangladesh’s economic outlook for 2026 is cautiously optimistic. Most forecasts project GDP growth of approximately 5 percent, supported by improving macroeconomic conditions, remittance inflows, and a gradual easing of inflation — though price pressures are expected to remain elevated before softening further. The IMF projects Bangladesh’s GDP to recover to around 4.7 percent in fiscal year 2026 and potentially accelerate toward 6 percent over the medium term, subject to stronger tax revenue mobilisation, financial sector reform, and improved policy implementation. Assessments by the World Bank and United Nations similarly suggest growth in the mid-4 to 5 percent range. Risks remain, including structural economic weaknesses, slow investment, persistent inflation, and the need to diversify beyond the readymade garment sector. Recent political developments — including the national election and leadership transition — could influence investor confidence and longer-term momentum, making policy stability and reform delivery critical to sustaining growth in 2026 and beyond.

The non-life insurance sector in Bangladesh recorded gross premium income of BDT 60.49 billion in 2024, compared with BDT 59.53 billion in 2023, representing year-on-year growth of 1.61 percent. As in prior years, fire insurance remained the dominant contributor to gross premium income, accounting for an average of 44.94 percent of total sector premiums. Total assets in the non-life insurance industry stood at BDT 175.91 billion in 2023 and expanded by 11.35 percent to reach BDT 195.88 billion in 2024, reflecting sustained capital accumulation and balance sheet strengthening across the sector.

From a global perspective, the Swiss Re Institute projects a moderation in non-life insurance premium growth over the near term. Growth in 2026 is expected to be driven primarily by the pricing cycle in advanced markets, where intensifying competition is beginning to temper rate increases, while emerging markets continue to benefit from underlying exposure growth. Over the longer term, structural tailwinds including strong exposure expansion, escalating liability costs, and capital expenditure in artificial intelligence are anticipated to support sustained premium growth across the global non-life insurance industry.

REGULATORY LANDSCAPE

The Insurance Development and Regulatory Authority (IDRA) has introduced corporate governance guidelines to promote greater transparency and accountability within the insurance industry. The impact of these measures has been limited to date; however, we remain confident that sustained regulatory oversight will instil the discipline and competitive fairness the sector requires. United Insurance conducts all business activities in full compliance with applicable laws, rules, and regulations — including those prescribed by the Bangladesh Securities and Exchange Commission (BSEC), the Dhaka Stock Exchange (DSE), and IDRA.

AWARDS AND ACCOLADES

United Insurance Company Limited received the Insurance Excellence Award 2025 from the Insurance Development and Regulatory Authority (IDRA), in recognition of its contribution to Bangladesh’s insurance sector. Introduced by IDRA this year, the Award is designed to promote ethical practices, transparency, and good governance, with the objective of strengthening public confidence in the insurance industry. United Insurance secured a position among the top five non-life insurance companies under the award framework.

Among the Company’s most notable historic recognitions: the 1st SAFA Best Corporate Award in 1997, the ICMAB Best Corporate Award in 2015, and the Insurance Development Award in 2021. These honours reflect the strength of our governance framework, the integrity of our financial reporting, and our ability to sustain the highest standards of corporate ethics in a dynamic operating environment. They are a testament to the strategic leadership of our Board of Directors and senior management, and to the dedication of our employees, whose commitment continues to deliver sustained value to our stakeholders.

COMPANY PERFORMANCE HIGHLIGHTS

United Insurance delivered a resilient performance in 2025, underpinned by disciplined growth, sound underwriting practices, and a focus on customer-centricity.

Gross premium income rose to BDT 711.38 million in 2025, compared with BDT 596.70 million in 2024 — an increase of BDT 114.68 million, representing approximately 20 percent growth year-on-year. Net premium income, after adjustment for reinsurance ceded and accepted, stood at BDT 438.21 million, up from BDT 296.03 million in the prior year. Income from investments and other sources reached BDT 142.01 million. Net profit increased to BDT 153.79 million, from BDT 100.64 million in 2024.

In light of this performance, the Board has recommended a 15% cash dividend for the year 2025, maintaining the same rate as the previous year.

Premium Income BDT 711.38 mn	Profit After Tax BDT 153.79 mn	EPS BDT 3.46
Dividend 15% Cash	Net Assets Value Per Share BDT 31.04	Investment BDT 1,323.19 mn

CREDIT RATING ACHIEVEMENT

United Insurance has been assigned the ‘AAA’ credit rating by Credit Rating Information Services Limited (CRISL). This rating reflects the Company’s sound financial position, robust risk management practices, and consistent commitment to excellence. It affirms our ability to meet financial obligations reliably, and it reinforces stakeholder confidence in our prudent growth strategy, strong asset quality, and governance discipline.

BOARD PERFORMANCE AND GOVERNANCE

I extend my appreciation to the Board of Directors for their strategic leadership and rigorous commitment to governance standards. Their oversight and forward-looking decision-making have been integral to navigating economic headwinds and sustaining growth. Business growth of approximately 20 percent in 2025 reflects the Board’s focus on value creation alongside operational discipline.

In 2025, the Board’s priorities centred on three areas:

• Business development, alongside enhanced corporate governance and risk oversight
• Strengthening compliance and ethical standards
• Aligning strategic goals with long-term sustainability

These efforts have translated into improved operational efficiency, stronger financial performance, and deepened stakeholder trust.

CORPORATE GOVERNANCE

United Insurance maintains rigorous standards of transparency and accountability across all areas of its operations. This commitment is foundational to our long-term success. The roles and responsibilities of the Board and management are clearly delineated, supporting a disciplined, well-structured, and accountable decision-making framework.

Compliance is a core priority. The Company adheres consistently to all applicable laws, regulations, and guidelines issued by IDRA, BSEC, the National Board of Revenue, and other relevant authorities. By aligning our governance framework with industry best practices, we reinforce our commitment to ethical leadership, operational integrity, and stakeholder confidence.

As a responsible corporate entity, United Insurance is committed to setting governance benchmarks — continuously strengthening transparency, operational efficiency, and regulatory compliance. Our objective is to be recognised as a model institution within the industry, ensuring that our governance practices not only satisfy statutory requirements but also reflect our dedication to excellence, sustainability, and long-term value creation.

In 2025, the Company undertook several key governance initiatives:

• Strengthening risk management frameworks to proactively address emerging challenges
• Deepening the integration of Environmental, Social, and Governance (ESG) principles across operations
• Promoting a culture of ethical leadership and strict regulatory compliance

Collectively, these initiatives have reinforced United Insurance’s standing as a benchmark for sound corporate governance within the industry.

ACKNOWLEDGEMENTS

On behalf of the Board, I extend our sincere appreciation to the Ministry of Finance, the Insurance Development and Regulatory Authority, Bangladesh Bank, the Bangladesh Securities and Exchange Commission, and the Dhaka Stock Exchange Limited for their continued guidance, oversight, and support.

I also wish to thank our valued shareholders, Clients, Co-Insurers, Reinsurers, and well-wishers for their enduring confidence and cooperation. My deep gratitude goes to my fellow Board members for their exemplary stewardship, and to every member of the United Insurance team for their professionalism, dedication, and unwavering commitment to excellence.

As we mark four decades of service, we look ahead with renewed purpose and confidence — well-positioned to seize the opportunities that lie before us.

Khandaker Moinul Ahsan

Chairman

United Insurance Company Limited