Directors' Report to the Shareholders
Dear Shareholders, Executives, Ladies and Gentlemen,
I, alongwith the Board of Directors of Rupali Insurance Company Ltd. bear the great pleasure to welcome you all to the 32nd Annual General Meeting of the Company. We feel sheer privilege for continuous patronage and support extended by all of you for about two and half decades. We would like to furnish the Directors' Report alongwith the audited financial statements and auditors report for the year ended December 31, 2019 for review, suggestion and approval from your end.
The Economy and Business Environment:
The economy of Bangladesh has continued to improve to a considerable extent. Consequently the activities of other sectors including insurance company has improved. As a result the financial conditions have upgraded, growth prospects have looked up and upward trend of business has expanded. The global output expanded considerably in 2019 than that of 2018. This is because of improvement of the position of euro area economy with GDP rising. Growth of emerging and developing economies has come up with the healthy external business environment and consistent internal demand.
The global economy has recovered as per expectation during the year 2019 although the same was not done satisfactorily during the time of previous 2 (Two) years. To lessen the burden of public debt IMF advised the developed economic countries to reduce the interest rate of public debt and to stimulate the domestic consumption for the sake of economic growth. As per projection of IMF the growth of world economy was estimated at about 2.9% in the year 2019. The world economy has developed as per expectation during the year 2019 due to rising demand, production and employment.
Economic Growth & Development in Bangladesh Economy:
Despite global meltdown in the economy in the Previous years, Bangladesh economy maintained growth momentum with some slowdown in export growth and in new investment activities. Outlays from national budget provided support to the affected sectors and extended the social safety net to uphold the domestic demand and economic activities. Inspite of some challenges in export earnings and remittance inflows the economic growth demonstrated satisfactory performances maintained by domestic demand. The growth was further accelerated during the year 2019 due to support of the appropriate Fiscal as well as monetary policies of the Government. According to the estimates of Bangladesh Bureau of statistics (BBS) GDP grew by 8.15% in FY-19 against 7.86% in FY-18.
Premium Income :
During the period under review the Company procured premium amounting to Tk. 871 million against Tk.876 million in 2018. Out of this Tk.794 million came from Private Sector against Tk.809 million in 2018 and the balance of Tk.77 million represents our share of public sector business received from Sadharan Bima Corporation. After ceding Tk.353 million as Re-Insurance premium the net premium income for the year amounted to Tk.518 million against Tk.514 million in 2018. The Gross Premium Income of the Company has been decreased by Tk.5 million compared to the preceding year complying the Rules and Regulations imposed by IDRA time to time.