Speech
Bismillahhir Rahmanir Rahim
As-Salaamu-Alaikum
Dear Honorable Shareholders,
It is with great pleasure, I welcome you all to the 24th Annual General Meeting (AGM) of Republic Insurance Company Limited (RICL).I thank everyone today for joining the AGM through the digital platform. I hope you and your family are all safe and keeping well.
It is my pleasure to place before you the Financial Statements of 2023 of the Company along with its performance. I would like to start with a brief overview of the performance and strategy of our company. In 2023 RICL stepped into the 24th years of the Company’s business operation with its commitment to maintaining superior corporate governance and balancing of growth, profitability, and risk.
Dear Shareholders, the Annual Accounts of the Company for the year 2023 is being presented herewith, from which we glad to inform you that like all over the world, in spite of the economic challenges in Bangladesh, the Company has able to collect premium of Taka hundred Crore during the year 2023 which increased by 20% over the last year at Tk. 83.83 crore. The Net Profit in the year stands at Tk. 15.56 Crore. Outstanding support of the valued stakeholders, good guidance from the experienced Board of Directors and initiatives taken by the competent management team in time, the Company succeeded to maintain a sustainable and incremental growth during the year.
Dear Shareholders, in 2023, Bangladesh faced various challenges in its economy along with high inflation, a high rate of non-performing loans (NPLs) in the banks, volatility in the bourses, low balance of payments and massive depreciation of currency. However, the effort of Bangladesh Bank of keeping for-ex rates at an acceptable rate is rather praiseworthy. The Bangladesh Securities and Exchange Commission (BSEC) with a view to making the bourses stable has already withdrawn the floor prices and thus, the stock markets are becoming vibrant gradually. Republic Insurance Company Limited, with its committed prudent insurance services, will remain persistent to overcome any future challenges and will be in rhythm for a sensible business growth in 2024 as per instruction and guidelines of IDRA.
Dear Shareholders, in light of Insurance Act 2010 and directives of Insurance Development and Regulatory Authority (IDRA), non-life insurance services to be dispersed to the rural areas as well as to the social sector. And as part of its, RICL has been providing insurance coverage to the insured by underwriting small and medium enterprise (SME) business through its branch network at the remote areas of the country. The Company has also been diversifying its business portfolio by increasing segments of medium and smaller clients and thus achieving a desirable spread of business which is fundamental to insurance sector.
Dear Shareholders, the Company always gives top priority in paying insurance claims and we believe that every insured collected a policy to protect their assets. If the claims paid in stipulated time, it helped to recover losses of the insured. In view of this, we are trying to settle the insurance claims at the fastest possible time as per the instructions of IDRA. In 2023, the Company has paid net claims of Tk. 5.02 crore, which was Tk. 2.16 crore in 2022.
Dear Shareholders, you will be pleased to know that RICL sponsors started its business with Tk. 6.00 crore only and collected another Tk. 9.00 crore from market with a total paid up capital of Tk. 15.00 crore only in 2008. Having the prudent business activities and your continuous support RICL could increase its paid-up capital to a significant level of Tk. 52.10 crore gradually from its retained profit. Hitherto the Company has been continuing a very good track record in payment of cash dividend. With that intent, from the divisible profits of 2023, the Board of Directors recommended 11% cash dividend amounting to Tk. 5.73 crore for declaration to the shareholders for the year 2023.
Dear Shareholders, the BSEC constituted Capital Market Stabilization Fund (CMSF) with the unclaimed or undistributed or unsettled cash or stock dividend or non-refunded public subscription money or un-allotted rights shares from the issuer of listed securities lying with them for more than three years, is yet to show its performance to making the bourses vibrant. RICL has been transferring the required amount of unclaimed dividend to the CMSF in compliance with the rules of the Fund on a regular basis.
Dear Shareholders, we with sincere gratitude always remember our clients and shareholders for their tremendous support and trust reposed on us. We would like to extend our sincere thanks to Banks and Financial institutions with whom we have extensive daily dealings along with the Regulators, Dhaka Stock Exchange PLC, Chattogram Stock Exchange PLC, BAPLC, NBR, FRC, BSEC, IDRA, Sadharan Bima Corporation, related Government bodies and stakeholders for their persistent co-operation and support.
I would like to extend my wholehearted thanks to the Honourable Members of the Board for their continuous support and valuable advices to administer the affairs of the Company smoothly and also to the different Sub-committees of the Board for performing their defined roles.
I also humbly seek forgiveness to the departed soul of late Hedayet Hossain Chowdhury Founder Chairman of the Company.
On behalf of the Board of Directors, I would like to take the opportunity to express our sincere thanks to the Chief Executive Officer, management team, Branch Managers and members of the staff of the Company for their commendable performance in adhering to company’s vision. I am very much confident and hopeful that they will continue to be steadfast in the face of adversity and achieve better results in the years to come.
May Allah keep us in peace and bless of all.
(Mohd. Hanif Chowdhury)
Chairman
.png "Credit Rating AA+")
