CEO’s Discussion & Analysis

Honorable Shareholders,
I would like to extend greetings from the Agrani Insurance Company Ltd. I welcome you to the 23rd Annual General Meeting with a brief discussion and analysis on the financial statements of the company for the year 2022. We are grateful to the Almighty that even with the all adverse situations we could make some profit for you meeting up all regular expenses and paying due VAT and tax to the Government. The government has also given importance to insurance sector to make it a significant industry to increase contribution to the country’s gross domestic products and declaring 1 March as the Insurance Day for Bangladesh remembering the first day in insurance by the father of the Nation Bangabandhu Sheikh Mujibur Rahman. It makes us proud that the father of the nation was associated with insurance sector and inspired people to be united to fight against the then Pakistan Government with a view to achieving the independence of Bangladesh.

Bangladesh Economy
The Domino affect from multiple factors starting from the warbetween Russia and Ukraine and post COVIT-19 situation faired commodity prices higher and higher. Following the other parts of the world. Bangladesh is also going through the throughs of supply crisis, forex volatility and blown remittance, the economic impact of war is so bad on this integrated interdependent economy is more costly than the war itself. We have been experiencing this since the onset of the Russia-Ukraine war, with the responses of many countries, the situation emerged with uncertainties and challenges from many fronts. Being an import dependent country Bangladesh economy was mostly affected negatively which also hampered the recovery from pandemic stress. Russia’s invasion of Ukraine and post COVIT-19 situation pushed up commodity prices globally, particularly crude oil, resulting in a higher trade deficits, the Bangladesh Bank, policy to x the exchange rate heavily without adjusting inflation differences further thronged the problem in Bangladesh. Also maintaining a fixed interest rate made it harder to cope with increasing interest rates gradually from negative to positive in developed economies to curb inflation. The volatility in the forex market has reached a new height, the supply and demand imbalance and panic purchases made it look harder. That pressure can easily be felt by the numbers causing higher trade deficits during the first nine months (July-March) of the 2021-22 fiscal year where impart payments increased by 44% whereas export income increased by 33% and remittances has fallen 18%, the forex market is the major determinant of inflation which is highest in recent years of 7.56% as of June 2022 from 7.42% in the past month. It was the highest inflation rate since July 2013 caused by soaring prices of both food items and non food items. Being a trading country and highly import dependent for fuel and industrial raw materials, many companies facing trouble in opening LC’s since banks are unwilling to open LCs due to forex shortages. Part of the crises heightened due the Bangladesh Bank’s maintaining lags in exchange rates. Price stability largely depends on a stable exchange rate. Despite many efforts and initiatives by the government and Bangladesh Bank regarding forex management, the situation is still gloomy. However, now coupled with other crises, BDT got far weaker ever crossing 1oo BDT per dollar, this might be temporary but still shows the vulnerability of the economy. Insurance industry also facing the challenges. As per Asian Development Bank (ADB) September 2020 review the GDP growth of Bangladesh for the year 2018 was 7.9%, in 2019 it was highest 8.2%, in 2020 affected by pandemic COVID-19 it was 5.2 and in 2021 it would be slight higher at 6.8%. In 2020 in the South Asian region Bhutan & Nepal had positive growth 2.4% and 2.3% respectively. Pakistan, Afghanistan, Srilanka, India and Maldives had negative growth of 0.4%, 5.0%, 5.5%, 9.0% and 20.5% respectively. South Asia’s average growth in 2020 was (6.8%) whereas Bangladesh alone had highest GDP growth of 5.2% at the same period. Even then non-life insurance sector was drastically affected in 2020. We can expect Bangladesh will overcome the present situation through integrated management and initiative. Finally, Bangladesh is in no way in a portion of a failing country rather she always has shown her resilience in any crises in history.

Credit Rating
Agrani Insurance Company Limited, as you know, is rated “AA2” by the WASO Credit Rating Company (BD) Ltd reflecting company’s very high claim paying ability, prudent -financial management, good solvency, diversified investment portfolio, sound liquidity and experienced top management. The rating helps the company to negotiate better terms with the reinsurers abroad.
Risks Management
Agrani Insurance has always been responsive of the risk factors inherent in the insurance industry. With a view to keeping the risks at a tolerable level it identifies, monitors and reviews the risks inherent in every policy or cover note underwritten, continues updating of data base for information and takes corrective and or preventive measures to safeguard the stakeholders’ interest.
2022 key financial indicators
We could carry on our business with the dedicated employees of the Company. Our most premium generating business classes are Fire, Marine, Motor and Miscellaneous. AICL was trying to underwrite business in all classes.




Gross Premium



Net Premium



Underwriting profit



Interest income



Dividend income



Developing human capital
AICL in the has recruited some experienced persons in the year under review with a view to develop the human capital arranging adequate in house training on the job to the existing staff and also arranging training by external resources. This would be ongoing process till the ensuring of quality services to the insured and to the stakeholders as well. The members of the staff of the company are the significant resources and human capital who run the company keeping it on the right track amid the limited resources.
Contribution to national exchequer
Agrani Insurance with its committed staff members, have been ensuring payment of appropriate amount of revenue to the Government including VAT, taxes, stamps and other source taxes during the year amounting to Tk. 85.39 million in 2022 against Tk. 60.72 million in 2021.

Conclusion note
I would like to deliver my sincere thanks to the Hon’ble Chairman and the members on the Board of AICL for their sensible vision, valuable participation and patronage and the prudent management team with sound & expert knowledge in operating insurance business for the commitment in accelerating and implementing our business strategy, over and above, in the mission of rebuilding AICL in the positive direction.
Lastly, on behalf of my team, I would like to express my sincere gratitude and acknowledgement, to all our regulatory authorities such as insurance Development and Regulatory Authority. Bangladesh Bank, NBR, BSEC, DSE, CSE and RJSC for their incessant support and guidelines from time to timer. We believe in our accumulate efforts of all will certainly bring a better future for all associated with the Agrani family.


Thanking you all


Md. Azharul Islam
Chief Executive Officer

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