Prepared& Presented By

Kazi Mashfiq Uddin Ahmed

ID: 100306003
Department of Business Administration

BACKGROUND OF FORMATION:
Following emergence of Bangladesh as an independent
nation in 1971, insurance industry was nationalized along
with banking and major industrial sectors of jute, textile,
sugar and other heavy industries. Under the nationalized
scheme, only two corporations in the name and style of
Sadharan Bima Corporation (General Insurance Corporation)
and Jiban Bima Corporation (Life Assurance Corporation)
were set up by the Government for carrying on general and
life insurance business respectively. Starting with gradual
liberalization of investment in industry and commerce,
insurance business was also allowed in the private sector
From 1985. As a result, a number of companies were set up.
RELIANCE INSURANCE LIMITED was the fourteenth in line to
start general insurance business in the private sector.
The Company was incorporated on 20th March 1988 and was
allowed to commence business by virtue of the Certificate of
Commencement of Business issued by the Registrar of Joint
Stock Companies on 22nd March 1988. The Company
obtained Certificate of Registration issued by the Controller
of Insurance on 7th April 1988.The company was
subsequently listed in the stock Exchanges of Bangladesh in
1995.

Corporate Vision
Companys vision is to become the premier
insurance organization and the insurer of first
choice in Bangladesh with a sound reputation
for dependability, professionalism and the
highest standard of customer services.
Building profitable and socially responsible
financial institution focused on Market and
Business with Growth potential, thereby
assisting Reliance Insurance Company and
stakeholders to build a just, enlightened,
healthy democratic and poverty free
Bangladesh.

Corporate Mission
Grow significantly and achieve significant nonlife insurance market share.
Continue delivering attractive returns to our
shareholders. Become a caring organization
and employer of choice.
Invest in top quality human resources and
develop full potentials of employers by
providing continued training and insurance
education.
Bring innovation in insurance products and
selling techniques.

1. Sustained growth in Small & Medium Enterprise sector

2. Continuous low-cost deposit Growth with controlled growth in
retail assets.
3. Continuous endeavor to increase non-funded income
4. Achieve efficient synergies between the Insurance Companys
branches, SME unit offices and Reliance Insurance Company
field offices for delivery of remittance and Insurance Company
s other products and services.
5. Manage various lines of business in a full controlled
environment with no compromise on service quality.
6. Corporate Assets to be funded through self-liability mobilization.
Growth in Assets through syndications and investment in faster
growing sectors.

Objectives
The objectives and principles of Investment
operations of the Insurance Company are:
To invest fund strictly in accordance with the
principles of Islamic Shariaah.
To diversify its investment portfolio by size of
investment, by sectors (public & private), by
economic purpose, by securities and by
geographical area including industrial,
commercial & agricultural.

 To ensure mutual benefit both for the Insurance

Company and the investment-client by professional

appraisal of investment proposals, judicious sanction of
investment, closes and constant supervision and
monitoring thereof.
To make investment keeping the socio-economic
requirement of the country in view.

RELIANCE AT A GLANCE
Particulars

2010

2009

2008

2007

2006

Gross Premium

1241.00

1,041.13

1,101.53

827.53

743.83

Net Premium

618.07

430.25

453.20

353.66

293.18

Net Claims

137.68

105.09

103.68

85.60

70.92

Investment &
Other Income
(Gross)

153.68

114.94

61.14

42.42

43.02

Underwriting
Profit

161.00

56.78

96.32

76.56

45.10

Net Profit before

tax

287.23

146.30

137.93

100.68

70.18

Paid up Capital

304.20

234.00

180.00

150.00

150.00

Total Reserves

1114.55

821.63

637.68

543.98

505.40

Total Assets

2262.94

1,880.29

1,467.92

1196.97

1065.80

Cash & Bank

Balances

791.88

759.87

598.82

463.12

350.68

Investment in
share & debenture

330.36

190.52

198.53

169.52

171.86

Dividend in
Percentage cash)
Dividend in
Percentage
Bonus)

30%

20%

15%
-

Earning Per Share

71.55

51.71

59.97

44.26

34.78

Book Value Per

Share

384.64

407.03

382.33

101.83

101.00

Shareholder
Equity

1170.09

952.44

688.20

152.75

151.72

Number of
Employees

335

325

305

279

283

NATURE OF BUSINESS:

The Company carries on the business of all types of insurance except life assurance. It
has now 32 (thirty two) branches, one local office with the Head Office at Dhaka.

The Company's main business operations are being carried out in the following areas:

(a) Underwriting of Fire Insurance.

(b) Underwriting of Marine (Cargo & Hull) Insurance.
(c) Underwriting of Motor Insurance.
(d) Underwriting of Overseas Mediclaim & Holiday Insurance.
(e) Underwriting of Miscellaneous Insurance.
(f) Underwriting of Public Issue of Shares & Debentures.
(g) Investment of Shares & Debentures.

.:: Chairman's Profile

MR. SHAMSUR RAHMAN

Chairman, Reliance
Mr. Shamsur Rahman is a member of the Board of Directors and former Chairman of
Reliance Insurance Limited. He is a Director of Bangladesh Lamps Limited (licensed
manufacturers of PHILIPS lighting products), Mediastar Limited (Publishers of Prothom
Alo), Mediaworld Limited (Publishers of The Daily Star), ABC Radio (FM Radio Station).
Mr. Rahman is a Director and current Chairman of Reliance Insurance Limited.

Managing Director & CEO

Akhtar Ahmed, ACII
Executive Director
Enamul Haque Khandker, FIPM

Head, HR & Administration Division

Md. Khaled Mamun, ACII

Head, Specialized Underwriting and

Marketing

Deputy Executive Director

Md. Anisur Rahman, MBA, ABIA, DAIBB

Head, Operations

Md. Sabir Ahmed, FCA, FCS

CFO and Company Secretary

Deputy Executive Vice President

Shahadat Hossain

Chief, Reinsurance

Md. Israfil

Chief, Branch Co-ordination &

Development

Golam Sarower

Incharge, Internal Audit & Control

Senior Vice President

Md. Jashim Uddin

Chief, Accounts

Nirmal Chandra Roy

Chief, New Product & Services

Md. Nazrul Islam

Chief, HR & Admin

Deputy Senior Vice President

Md. Mahbubur Rahman (Anis)

In-charge, Information Technology

Md. Masud Rana

Chief, Finance

Vice President
Kazi Altaf Hussain

Chief, Specialized Underwriting

Abdul Motin

Chief, Policy Issuing Section

Syed Qayem Hussain

Chief, Marketing Services & Health Plan

Asiqur Rahman

Chief, Claims Dept

Deputy Vice President

Md. Zahurul Haque

Chief, Share Deptt

Md. Abul Kalam Azad

Chief, Software-IT Division

Shamsul Alam

Chief, Hardware- IT Division

Assistant Vice President

Lutful Jewel

Chief, Admin & General Service Deptt

Organ gram

.:: Products of RELIANCE

Fire Insurances:

Fire Insurance (including Allied Perils)

Industrial All Risks (IAR)

Property Damage All Risks (PDAR)

Marine Cargo Insurances :

Marine Cargo Insurance transit by Steamer or Powered Vessel

Marine Cargo Insurance transit by Rail/Lorry/Truck

Marine Cargo Insurance transit by Inland Rail or Road

Marine Cargo Insurance transit by Inland Cargoes (water borne)

Marine Cargo Insurance transit by Air Cargo

Marine Hull Insurance

Total Loss Only (TLO)
Institute and Inland Time Clauses Hull (ITC)

Engineering Insurances
Machinery Insurance (Machinery Breakdown)
Deterioration of Stock (DOS)
Boiler and Pressure Vessel (BPV)
Electronic Equipment Insurance (EEI)
Contractor's All Risks (CAR)
Work Plant (WP)
Oil & Gas Well Drilling Equipment Package (OGD)
Contractors Plan & Machinery (CPM)
Hotel Owners All Risks (HOAR)

Miscellaneous Insurances
Burglary

Marine Terminal Operators Liability (MTOL)

Cash in Safe

Commercial General Liability (CGL)

Cash in Transit

Comprehensive General Liability

Cash on Counter

Hole in One Insurance/Event Cover

Cash in Premises

Business Interruption

Fidelity Guarantee

Overseas Medical and Holiday Insurance

including Study and Employment

All Risks
Personal Accident
Personal Accident (air Travel)
Product Liability (PRL)
Public Liability (PL)
Workmen's Compensation
Employers Liability

Health Plan Scheme ( Hospitalization)

Critical Illness

Motor Insurances

Motor Insurances for Motor Cycle/

Scooter
Motor Insurances for Private Vehicle
Motor Insurances for Commercial Vehicle

.:: Corporate Social Responsibility

Community

Company aim to be a good corporate citizen and to work in partnership with the
community. They have participated while the nation in a crises of natural
disaster.

Customers

Company determines customers needs and have a commitment to provide high

quality services to meet them.

Environment

The Company reports annually our direct and indirect contributions to improving
the environment.

Health & Safety

Company is committed to provide a healthy and safe working environment for

our staff and visitors.

Human Rights

Company respects the Universal Declaration of Human Rights and are guided by
its principles. The company strictly follows non-discriminatory policies in all its
procedures such as recruitment and promotions and has in place a performance
management system that rewards employees based on merit and contribution.

Standards of Business
Conduct

Company is committed to ensuring our business is conducted in all respects

according to high ethical, professional, and legal standards and follows good
corporate governance practices.

Suppliers

The Companys suppliers are carefully assessed and approved against

established criteria. Suppliers are managed as partners in our operations and we
arrange seminars with surveyor companies to improve communication and
provide technical skills training. In addition, to ensure compliance with our high
service quality standards, satisfaction surveys are conducted regularly to
measure service performance.

Workforce

The Company holds a biannual Employee Focus Survey, which focuses on the
drivers of business performance, in particular employee engagement and
customer focus. The company's aim is to be as an employer of choice by
engaging its staff and providing them with the necessary skills and opportunities
to contribute to the company's success and fulfill their potential.

.:: Services
Our Services to the customers & Complaints and Suggestions:
Services to the customers:
Striving for customer service excellence has always been our first priority at Reliance
Insurance Limited.
Our customers' needs, including the location and size of our customer operations, are at
the center of our business management and planning processes; from the design and
formulation of insurance policies, to the definition of claims procedures.
Our goals are to always attend to walk-in customers with regards to enquiries,
purchasing new classes of insurance, renewal of insurance and issuing cover notes and
receipts; to guide customers on claims procedures; to provide complete product
information to customers for their better understanding; and to make recommendations
to customers in order for them to make an informed choice.
We are committed to customer service excellence and our mission is backed by
investment
Complaints and Suggestions
Whilst we strive for customer service excellence, a complaint department has been
established by Marketing Services Department. If you wish to make a complaint or
suggest ways we can improve our services, we are hereby ready to assist.

Net Premium Analysis

6
1
8
.
0
7

4
3
0
.
2
5

4
5
3
.
2
0

3
5
3
.
6
6

2
9
3
.
1
8

Underwriting Profit Analysis

161.00 crore

96.32 crore
76.56 crore
56.78
crore

45.10 crore

Cash & Bank Balances Analysis

7
9
1
.
8
8

7
5
9
.
8
7

5
9
8
.
8
2

4
6
3
.
1
2

3
5
0
.
6
8

Number of Employees

283

335

279
325
305

Total Asset Balances

1065.80 crore
1196.97 crore
1,467.92 crore
1,880.29 crore
2262.94 crore

Book Value Per Share Analysis

384.64

407.03
382.33

101.83

101.00

Earning Per Share Analysis

71.55 Tk.
59.97 Tk. 51.71
Tk.
44.26 Tk.
34.78 Tk

SWOT
Analysis

STRENGTH

Weaknesses

Opportunities

Threats

Distinct operating
procedures

Upcoming
Insurance
Companys/
Branches

Discouraging
small
entrepreneurs

Country wide
network

Similar products
are
offered by other
Insurance
Company s

Absence of
strong
marketing
activities

Increasing
industries

Political In Sustainability

Wide Area of business

Changes in regulation and

Government Policies

Strong corporate
identity

High charges
of L/C

Strong employee
bonding
and belongings

Huge Capital

Strengths
Strong corporate identity:
According to the customers, Reliance Insurance Company Insurance
Company is the leading provider of financial services identity
worldwide. With its strong corporate image and identity, it has better
positioned itself in the minds of the customers. This image has
helped Reliance Insurance Company Insurance Company grab the
personal Insurance Companying sector of Bangladesh very rapidly.

Strong employee bonding and belongings:

Reliance Insurance Company Insurance Company
employees are one of the major assets of the company.
The employees of Reliance Insurance Company
Insurance Company have a strong sense of commitment
towards organization and also feel proud and a sense of
belonging towards Reliance Insurance Company
Insurance Company. The strong organizational culture of
Reliance Insurance Company Insurance Company is the
main reason behind its strength.

Huge Capital & Assets:

Reliance Insurance Company has huge Amount of reserve Assets and a large Amount of
Capital. So They are Very much capable for investing into the large business sector.
Reliance is Capable to run and support wide range of businesses.

Weaknesses
High charges of L/C:
Presently Reliance Insurance Company Insurance Company charges same rates for all
types of import L/C. But for import L/C of exports-oriented industry, Reliance Insurance
Company Insurance Company should reduce the charge of L/C. As a result, exporter
will be benefited and the country will earn more foreign exchange. The commission often
even rises up to 30%.

Discouraging small entrepreneurs:

Reliance Insurance Company Insurance Company provides clean Import Loan to most
of its solvent clients. But they usually do not want to finance small entrepreneurs whose
financial standing is not clean to them.

Absence of strong marketing activities:

Reliance Insurance Company Insurance Company currently don't have any strong
marketing activities through mass media e.g. Television. TV ads play vital role in
awareness building. Reliance Insurance Company Insurance Company has no such TV
ad campaign. Although they do a lot of CSR activities compared to other Insurance
Company s.

Opportunities
Distinct operating procedures:
Repayment capacity as assessed by Reliance Insurance Company Insurance
Company of individual client helps to decide how much one can borrow. As the whole
lending process is based on a client's repayment capacity, the recovery rate of Reliance
Insurance Company Insurance Company is close to 100%. This provides Reliance
Insurance Company Insurance Company financial stability & gears up Reliance
Insurance Company Insurance Company to be remaining in the business for the long
run.
Country wide network:
The ultimate goal of Reliance Insurance Company Insurance Company is to expand its
operations to whole Bangladesh. Nurturing this type of vision & mission & to act as
required, will not only increase Reliance Insurance Company Insurance Company
profitability but also will secure its existence in the long run.

Increasing industries
In Bangladesh Number of industries are establishing day by day and these are a great
opportunities for expanding the business for Reliance. The export and import oriented
sectors and businesses are widening up in Bangladesh. Entrepreneurships are
expanding and these are great opportunities for expanding the businesses for Reliance.

Wide Area of Business:

In our country the business sectors are wide and varities are there. The Range of
business is Wide cause number of sectors are there to involve. Because different types
of industries are establishing Day by Day. So its a great opportunity to grab these
sectors and to enter these sectors by capturing these entrepreneurs.

Threats:
Upcoming Insurance Company s/Branches:
The upcoming private, local, & multinational Insurance Company s posses
serious threats to the existing Insurance Companying network of Reliance
Insurance Company. It is expected that in the next few years more commercial
Insurance Company s will emerge. If that happens the intensity of competition will
rise further and Insurance Company s will have to develop strategies to compete
against and win the battle of Insurance Company s.

Similar products are offered by other Insurance Company s

Now-a-days different foreign and private Insurance Company s are also offering similar
type of products with an almost similar profit margin. So, if all competitors fight with the
same weapon, the natural result is declining profit.

Political In sustainability:
Due to the political In sustainability the situation of the country doesnt remains stable.
And this is a great threat for expanding or operating the business activities. If political
violence continues the overall situation of the economy goes down and economic growth
begins to slow down. And this is a great threat for expanding the business.

Changes in Government Policies and Regulatory Authority

Changes In government policies are a great threat for the business. New policies or
changes in tax patterns cause a great threat for the business. Besides that the New
policies taken by IDRA ( Insurance Development & Regulatory Authority Bangladesh) are
also a great threat for the business. As for example: now a days Commission system has
reduced to only 15% By IDRA for which company is loosing their customers. Besides
that increase in government Taxes and VAT are also the threats.

Recommendations
Good Communication has to be build up to grab the new customers and also with the
existing customers.
Marketing Sectors should be developed more strongly by providing skilled and efficient
employees.
More Dynamic and efficient employees should be hired or appointed to the marketing
sector.
E-Business facilities should be widen up.
Premium charges should be more favorable.

Conclusion
A lot of new commercial Insurance Company has
been established in last few years and these
Insurance Company s have made this sector very
competitive. So new Insurance Companys have to
organize their operations according to the need of
the market. Insurance Companying sectors no
more depends on a traditional method of
Insurance Companying. In this competitive world,
this sector has trenched its wings wide enough to
cover any kind of financial service anywhere in
this world. The major task for Insurance Company
s to survive in this competitive environment is by
managing its assets and liabilities in an efficient.