Rupali Life Insurance

“FINANCIAL STATUS AND MANAGEMENT PERFORMANCE ANALYSIS”, STUDY ON RUPALI LIFE INSURANCE
COMPANY LTD.
Introduction
Rupali Life Insurance Company (RLIC) is one of the leading Life Insurance Companies in
Bangladesh. It has a very dignified management having magnificent professional Identity,
illustrious educational background and honesty. The Company transact a wide range of Life
Insurance business in Bangladesh and has gradually developed goodwill and expertise in the
field with sound and stable financial position. Rupali Life Insurance Company's primary
method of distribution around the country is the agency network. RLIC's agency offices,
servicing centers and affiliates market with a broad range of life insurance product through a
network of some agents & development officers countrywide. It emphasize professional skill
development through continuous education and field training.They are proud of their
transparent and accountable services being rendered to their valued customers at their utmost
satisfaction. Their quality products have already drew the attraction of general mass. Their
are relentlessly working towards their desired goal.
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COMPANY LTD.
Company profile
Rupali Life Insurance Company Limited (RLIC) was established in 2000. Today Rupali
Life, with its Head Office in Dhaka operates more then 1500 Agency Offices throughout
Bangladesh. Rupali Life Insurance Company Limited offers a system to replace the loss of
income that occurs when someone dies (usually the person who produces the majority of
income in a family situation). It is a contract between you as insured person and RLIC that is
providing the insurance if their clients dies while the contract is in force, the Rupali Life
Insurance Company Limited will pay a specified sum of money free from income tax "Cash
benefits" to the person or persons beneficiaries or nominees. Their Life Insurance Plans do
more that just replace the loss of income that occurs after your dath. It should also provide
money to cover the new costs that arise after your death funeral expenses, taxes, probate
costs, the need for housekeepers, child care, and so on. And those cash benefits should
provide for your families future needs as well, including education for your children and part
of all of your spouse's retirement needs. In almost all the cases, your beneficiary can use the
cash benefits in the way he or she sees fit, without restriction.
RLIC's policy of developing local talent to resource its operations has greatly contributed to
its success in understanding, meeting and responding quickly to change customer needs and
market conditions. They are primarily staffed with local personnel who are constantly
studying the needs of individuals and developing innovative products to the specific
requirements of each district of Bangladesh. This long-standing approach is the foundation of
their leadership, because they understand local market needs and conditions. Local awareness
typifies RLIC's previous history and continues to this day.
The Company was incorporated on 28th December 1999 under the Companies Act 1994 as a
public company limited by shares for carrying out life insurance business and was granted
Certificate of Commencement of business on 28th December 1999. The Company obtained
the Certificate of Registration from the Chief Controller of Insurance, Insurance department
on 29th December 1999 with the authorized capital of Tk 100,000,000 (Ten Crore) consisting
of 1,000,000 ordinary shares of Tk 100 each. The sponsors/subscribers have already
contributed to the paid up capital of Tk 30,000,000 (Three Crore) as required by the
Insurance Act, 1938 and Rules 1958. In fulfillment of the conditions of the license issued by
the Chief Controller of Insurance, now the Company proposes to raise the paid up capital to
Tk 75,000,000 (Seven Crore Fifty Lac) only by issuing 450,000 ordinary shares of Tk 100
each to the general public. The company is engaged in life insurance business and has no
subsidiary.
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COMPANY LTD.
Board of Directors
Rupali life Insurance Company has a renown Board. The functions of the board is to
formulate the overall plan of operation for the company, in the interest of the owners
(shareholders) taking into account the interest of policyholders, staff, the public and the effect
of market competition. Honorable Chairman, Vice-Chairman, Technical Director of the board
who lead the board of directors by setting up the plan and making decisions. Prominent and
renown figure have come from industrial, commercial and academic sectors are open
involved as the directors panel, providing the benefit of their expertise. The name of
honorable members of the board are:
Committees of The Board
Chairman Vice Chairman

Mr.Mahfuzur Rahman Engr. DewanNuruzzaman
Technical Director
Mr. Abdul Matin
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COMPANY LTD.
Directors
Mr. Pankaj Kumar Sarker
Sazia Sultana Sony
Mr. Monirul Hasan Khan
Mrs. Ben Afroz
Mrs. Kamrunnessa Jharna
Md. Alamgir
Md. Zillur Rahman
Md. Helal Uddin
Mohammed Amirul Islam
Md. Mohsin
Md. Mosikur Rahman
Md. Shamim Khan
Md. Shafiqul Islam
Md. Sakhawat Hossain
Mrs. Sabita Ferdousi
Independent Directors
Md. Maruf Hossain
Md. Kamal Hossain
Ex-Directors & Sponsors

Mr. Abdullah Jamil Matin
Mrs. Mahmuda Mahfuz
Mrs. Parvez Akhter Khanom
Managing Director
Noor Mohammed Bhuiyan
Company Secretary
Biswajit Kumar Mondal
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COMPANY LTD.
Rupali Life Insurance Company (RLIC)
Head Office:
Rupali Bima Bhaban (9th floor)
7, Rajuk Avenue
Dhaka - 1000, Bangladesh
Phone:
9571355,9566541,9566527
Fax:
88-02-9570560
E-mail:
rupali_life@yahoo.com
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COMPANY LTD.
Corporate Management
Rupali life Insurance Company has very dynamic management team. The main objective of
the management is to achieve the trust of their valuable clients by ensuring the best service.
The target of the management is to uphold the interest of their shareholders and policyholders
by providing excellent service and the maximum profitability of their investment. Business
expansion, developing new and innovative products and exploring new opportunity is the key
to success of the management of Rupali Life Insurance Company Ltd.
Managing Director
Noor Mohammed Bhuiyan, MBAs
Deputy Managing Directors

Md. Golam Kibria
Biswajit Kumar Mondal, MBA,ABIA
Executive Vice Presidents

Md. Mozammel Hossain
Md. Younus Ali Biswas
Md. Zahir Hossain, MBCS
Senior Vice Presidents

Md. Abdul Karim, B. Ed.
Md. Maksuder Rahman
Deputy Vice Presidents

Md. Khalid Saifullah
Md. Monzur Ahmad, ABIA
Mr. Muhammad Abdullah
Sr. Asstt. Vice Presidents

Mohammad Shafiqur Rahman, ABIA
Md. Mizanur Rahman
Md. Manjur Abedin Chowdhury
Md. Kamruzzman, MBA
Md. Sydul Islam
Asstt. Vice Presidents

Md. Rezaul Karim
Monirul Islam
Md. Golam Mostafa
Jahangir Alam
Md. Mostafa Alam
Md. Mizanur Rahman Bhuiyan
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COMPANY LTD.
Field Management
Rupali life Insurance Company has very hard working field force. A strongly motivated Field
management team is guiding the field officers to achieve their goal set by the management. The main
objective of the field management is to achieve the trust of their valuable policy holders and keep
ahead of the competitors in the stiff competitive market.
EKOK Bima Islami Jiobn Bima(Takaful)
Senior Asstt. Managing Director Senior Asstt. Managing Directors
Mr. Bahar Mia Talukdar Md. Abdul Awal
Asstt. Managing Director Md. Aktar Hossain Talukder
Mr. Mushfiqur Rahman Kazol
Joint Asstt. Managing Directors Joint Asstt. Managing Directors
Mr. Rafiqul Islam Nannu Md. Abdus Salam
Md. Shah Niazul Alam Md. Faruque Hossain Tipu
Md. Aktaruzzaman Md. Awlad Hossain
Mr. Asaduzzaman Apu Md. Kamruzzaman
Mr. Murtaza Miah Talukder
Mr. Arifur Rahman SEGM/SED
Mr. Khairul Momin Kazol Md. Didarul Islam Mamun
Mr. Masuk Mia Md. Shafiqur Rahman Chowdhury
Md. Jasim Uddin (Globe Chamber)
SEGM/SED Md. Mohin Uddin
Md. Mohammad Yousuf Mr. B.M. Saifullah
Md. Anwar Hossain Md. Bazlur Rahman
Mr. Noor Mohammad Md. Saleh Uddin
Md. Hafizur Rahman Md. Golam Mustafa
Mr. Rezaul Haque Khan Md. Jasim Uddin
Mr. Golam Mustafa Mr. Shah Jalal Khan
Mr. Sujit Das Md. Jahangir Alam Helal
Mr. Moynul Haque Paban Md. Jahid Ali
Mr. Jahedur Rahman Khokon Md. Abul Kashem
Mr. Sukumar Mondal Other Service Cell Head
Mr. Rafiqul Islam Mr. Saleh Uddin, EGM, Islami
Mrs. Atia Banu
Mr. AKM Jahid Uddin Samajik Bima
Mr. Mr. Imtiaz Ahmed
Mr. Josim Uddin Mojumder
Other Service Cell Heads Project Director
Mr. Din Mohammad, EGM , Ekok Bima Md. Kamal Uddin
Mr. Abdul Motalleb, SGM, Ekok Bima Joint Project Directors
Mr. Abu Musa, SGM, Ekok Bima Md. Aktaruzzaman
Md. Rafiqul Islam
Khudra Bima Deputy Project Directors
Project Director Md. Jasim Uddin
Md. Abdul Karim, B. Ed. Mr. Pran Nath Das
Mr. Abdul Mobin
Deputy Project Directors Mr. S. M Monir Bakul
Mr. Jonayed Ahmed Mr. Fajlul Haque Akash
Md. Abdul Halim Mr. Abul Hossain
Mr. Riazul Islam Mr. Taslim Uddin
Mr. Sirajul Islam
Al-Amanat Bima Mr. Hafez Ahmed
Mr. Ashok Kumar Malakar
Project Director
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COMPANY LTD.
Mr. Rafiqul Islam Nannu Mr. Ibrahim Jubaeer
Mr. Ranjit Kumar Roy (Babu)
Shariah Bima Mr. Abdul Latif
Mr. Abdul Motallib
Project Director Mr. S.M Zakir Hossain
Md. Ibrahim Abedi
Mr. Selim Khan
Mr. Janangir Hossain
11th Annual General Meeting (AGM) 2011
Mr. Mahfuzur Rahman( 5th from the left)

Chairman of the Company addressing the meeting
11th Annual General Meeting (AGM) of Rupali Life Insurance Company Limited was held on
Thursday, 18 August 2011 at the Institute of Diploma Engineers Bangladesh, Muktijoddah Smriti
Milanayatan, 160/A, Kakrail, Dhaka-1000. The meeting was presided over by Mr. Mahfuzur
Rahman, Chairman of the Company. A huge number of shareholders were attended the meeting.
The meeting was attended, among others by the members of the board, Managing Director,
Company Secretary, Dy. Managing Directors and other high officials of the Company. In their
address, the shareholders praised the board for announcing a handsome dividend. The annual
accounts for the year 2010 along with Directors Report and audited accounts and auditors report
thereon were considered in the meeting. 14% stock dividend was also approved by the
shareholders in the meeting.
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COMPANY LTD.
Policy holders’ Bonus
The Board of Directors of Rupali Life Insurance Co. Ltd. has declared bonus for its
policyholders as under effective from 01/01/2012:
Reversionary Bonus
Term Bonus per Thousand Taka
(for all plans)
08 years to 14 years Tk. 30
15 years to 19 years Tk. 32
20 years and above Tk. 35
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COMPANY LTD.
Principal wing
Rupali Life Insurance Company (RLIC) has a wide range of policy products.
Products are designed for all class of people in the society. Following Projects are
available in RLIC.
 Ekok Bima
 Samajik Bima
 Islami Bima
 Takaful DPS Bima
 Rupali DPS Bima
 Rupali Khudra Bima
 Shariah DPS Bima
 Al - Amanat Bima
Products and services

 Single Payment Endowment Assurance Plan-with profit.
 Three Payment Endowment Assurance Plan-with profit.
 Five Payment Endowment Assurance Plan-with profit.
 Mohorna Bima- with profit.
 Child Education Assurance Plan-with profit.
 Takaful Deposit Pension Scheme.
 Rupali Deposit Pension Scheme.
 Anticipated Endowment(Takaful) Assurance- 4 stage- with profit.
 Child Welfare Assurance Plan-with profit.
 Hajj Plan-with profit.
 Premium Back Term Assurance Plan-with Guaranteed profit.
 Premium Back Term Assurance Plan-without profit.
 Assurance Cum-Pension Plan-without profit.
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COMPANY LTD.
Vision
they want to be the leader insurer among the life insurance companies in Bangladesh,
providing integrated insurance services and prompt claim settlement.
Mission
 To provide qyality and innovative insurance product.
 To emphasis on the highest customer satisfaction.
 To create shareholders value.
 To ensure corporate social responsibility to the society up held by employment
and taking financial risks.
 To ensure ethical standard in business operation and provide benefits and keep
interest to the policy holders and stakeholders.
Objectives
 To serve participants with best satisfaction.

 To conduct transparent business operation ethically.
 To create awereness of life insurance.
 To ensure the maximum output to shareholders against their input.
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COMPANY LTD.
Company Profile
Date of Incorporation 28th December 1999

Registration Certificate from 29th December 1999
the CCI Office
Authorized Capital 10,00,00,000
Paid up Capital 8,25,00,000
Registered Office 7, Rajuk Avenue

Rupali Bhaban (9th Floor)
Dhaka-1000
Re-Insurer SCOOR Global Life SE, Singapore.
Auditors B Alam & Co.

Chartered Accountants
78/E, Purana Paltan Life (2nd floor)
Consulting Actuary Mohammad Sohrab Uddin Ph.D, AIA

Flat # A-4, House # 65/A, Road # 15/A
Dhanmondi R/A, Dhaka-1209.
Tax Advisor Md. Delwar Hossain, FCA

Partner
Hossen Delwar & Co.
67/9, Eastern Mansion, Suit No. 5/1
Kakrail, Dhaka-1000.
Legal Advisor A. F Hasan Arif & Associates

Suit # C-2/12, "Al-Baraka Tower"
252, Elephant Road, Dhaka-1205
Bankers Exim Bank Ltd., Bangladesh Krishi Bank, Islami Bank

Bangladesh Ltd., Prime Bank Ltd., Janata Bank Ltd., Agrani
Bank Ltd., Mercantile Bank Ltd., First Security Islami Bank
Ltd., The City Bank Ltd., Social Islami Bank Ltd., Jamuna
Bank Ltd., United Commercial Bank Ltd., Uttara Bank Ltd.,
Rupali Bank Ltd., Mutual Trust Bank Ltd., Trust Bank Ltd.,
Al-Arafa Islami Bank Ltd., South East Bank Ltd., Eastern
Bank Ltd., Dutch-Bangla Bank Ltd.,
Membership i) Bangladesh Insurance Association
ii) Bangladesh Association of Publicly Listed Companies
Telephone 9571355, 9566541, 9566527
Fax 88-02-9570560
E-mail rupali_life@yahoo.com
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COMPANY LTD.
Brief Overview of the Company

1. Date of Incorporation: December 28, 1999.
2. Authorized Capital: Tk. 100 million.
3. Paid up Capital: Tk. 30 million.
Details of IPO
Description Ordinary Shares Par Value (Tk.) Amount (Tk.)
Pre-IPO Placement - - -
Public Offering 450,000 100 45,000,000
Paid up Capital after IPO
Particulars Capital in Taka

Issued and fully Paid up capital 30,000,000
Paid up capital Before IPO 30,000,000
IPO 45,000,000
Paid up capital after IPO 75,000,000
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COMPANY LTD.
Financial highlights
A. Comparative Statement New Busines And Business In Force
New business (TK. In million)
Ekok Bima
Year No. Of Policies First Year Premium

2011 20,626 160.37
2010 19,062 184.20
2009 18,695 127.54
2008 15,618 98.41
2007 15,543 90.21
Samajik Bima

2011 24,215 57.54
2010 26,810 50.86
2009 32,242 31.03
2008 35,571 45.44
2007 36,577 42.22
Islami Bima

2011 36,567 257.66
2010 42,417 325.65
2009 35,946 267.10
2008 27,177 155.02
2007 21,091 118.36
Takaful Deposit Penson Scheme

2011 31,002 86.46
2010 39,571 136.74
2009 39,300 92.37
2008 34,532 67.01
2007 21,835 34.76
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COMPANY LTD.
Rupali Deposit Penson Scheme

2011 8,130 10.73
2010 16,847 20.26
2009 6,839 16.61
2008 9,387 19.70
2007 11,134 21.02
Rupali Khudra Bima

2011 9,247 21.49
2010 14,828 20.66
2009 8,003 23.25
2008 13,086 17.93
2007 16,521 19.85
Shariah & Sanchaya Bima

2011 834 9.25
2010 703 8.99
2009 443 6.24
2008 830 2.79
2007 1,076 1.57
Al-Amanat Bima

2011 282 2.25
2010 252 4.37
2009 124 4.70
2008 126 4.31
2007 126 4.14
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COMPANY LTD.
GRAPHICAL PRESENTATION
Premium income
(Tk.in million)
2000
1500
1000
500 (Tk.in million)
0
2007 2008
2009 2010
2011
(Tk.in million)
2000 1664.38
1606.91
1500 1260.11
902.65
1000 716.36
(Tk.in million)
500
0
2007 2008 2009 2010 2011
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COMPANY LTD.
Life fund
(Tk.in million)
3000
2518.71
2242.91
2000 1598.15
1080.74
744.92
1000 (Tk.in million)
0
2007 2008
2009 2010 2011
Investment
(Tk.in million)
1400 1299.89
1200 1022.93
1000
800 710.68
600 525.98 (Tk.in million)
364.63
400
200
0
2007 2008 2009 2010 2011
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COMPANY LTD.
Total assets
(Tk.in million)
4000
3000 3051.12
2663.35
2000 1706.01
788.611202.95 (Tk.in million)
1000
0
2007 2008 2009 2010 2011
Investment income
(Tk.in million)
200 197.3
139.59
100 92.98
43.79 65.99
(Tk.in million)
0
2007 2008 (Tk.in million)
2009 2010 2011
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COMPANY LTD.
Value added-2011
0.19%
1st year premium
7.54% 0.17%
0.11% 33.53% Renewal premium
Group premium
58.46%
Interest, divident & rent
Capital market income
other income
Value distributed-2011
15.29%
8.54%
Management expenses
51.25%
24.92% Claim payment
Other expenses
Life fund
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COMPANY LTD.
Claim payment
2.34% 4.70%
Survival claim
28.75%
60.48% Death claim
Maturity claim
Surrender
3.73%
Policy bonus
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COMPANY LTD.
BUSINESS PERFORMANCE
First year premium (TK. In million)
particulars 2011 2010 2009 2008 2007

Ekok Bima 160.37 184.20 127.54 98.41 90.21
Samajik Bima 57.54 50.86 31.30 45.45 47.22
Islami Bima 257.66 325.63 267.10 155.02 118.36
Takaful Deposit Penson Scheme 86.46 136.74 92.37 67.01 34.76
Rupali Deposit Penson Scheme 10.73 20.26 16.61 19.70 21.02
Rupali Khudra Bima 21.49 20.66 23.25 17.93 19.85
Shariah & Sanchaya Bima 9.25 8.99 6.24 2.79 1.57
Al-Amanat Bima 2.45 4.37 4.70 4.31 -
Total 605.96 751.71 568.84 410.62 337.13
Renewal Premium (TK. In million)
particulars 2011 2010 2009 2008 2007

Ekok Bima 298.25 250.97 242.42 177.79 147.20
Samajik Bima 139.46 145.78 132.41 117.98 103.60
Islami Bima 403.90 270.56 188.56 111.52 72.82
Takaful Deposit Penson Scheme 137.94 106.29 63.34 34.05 18.50
Rupali Deposit Penson Scheme 38.60 43.59 35.94 28.72 21.02
Rupali Khudra Bima 32.44 33.26 25.90 21.30 15.76
Shariah & Sanchaya Bima 2.84 1.57 0.35 0.48 0.19
Al-Amanat Bima 2.98 2.77 1.03 0.15 -
Total 1,056.41 854.79 689.95 491.99 379.09
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COMPANY LTD.
(TK. In million)
particulars 2011 2010 2009 2008 2007
Group premium bima 2.01 0.41 1.32 0.04 0.14
Gross premium 1,664.38 1,606.91 1,260.11 902.65 716.36
Growth rate(%) 3.58 27.52 39.60 26.01 29.41
Investment income 139.59 197.30 92.98 65.99 43.79
Claims Payment (TK. In million)
particulars 2011 2010 2009 2008 2007
Death Claims 16.77 16.75 7.73 11.87 6.50
Maturity 129.27 44.16 - - -

Survival 271.85 217.45 162.58 127.77 72.89
Policy bonus 21.16 0.93 - - -
surrenders 10.50 3.98 2.50 1.70 2.10

Total Claims 449.55 283.27 172.81 141.34 81.49
Claims to Premium(%) 27.01 17.63 13.71 15.66 11.38
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COMPANY LTD.
particulars 2011 2010 2009 2008 2007

Commission expenses 674.74 591.55 441.38 327.92 269.07
Admin. expenses 250.92 211.26 194.20 146.58 104.19
Total Management expenses 925.66 802.81 635.58 474.50 373.26
Management expenses to 55.62 49.96 50.44 52.57 52.11
premium
Assets 3,051.12 2,663.35 1,706.01 1,202.95 788.61
Rate of increase (%) 14.56 56.12 41.82 52.54 54.19
Life fund 2,518.71 2,242.91 1,598.15 1,080.74 744.92
Growth rate (%) 12.30 40.34 47.88 45.08 61.69
Investment (TK. In million)
particulars 2011 2010 2009 2008 2007
Statutory Deposit 4.00 4.00 4.00 4.00 4.00
Jatiya Biniog Bond - - 81.40 99.90 123.98
Govt. Treasury Bond 638.50 498.50 272.50 108.00 15.00
Shares of companies 239.34 224.08 34.62 38.26 19.58
Fixed Deposits 395.56 282.08 309.07 270.43 198.53
Policy Loan 22.49 14.27 9.09 5.39 3.62
Total 1,299.89 1,022.93 710.68 525.98 364.63
Increase/ (decrease)% 276.96 312.25 184.70 161.35 134.02
Growth rate (%) 27.08 43.94 35.12 44.25 58.12
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COMPANY LTD.
PERFORMANCE ANALYSIS:
In the year 2011or 2010 a negative impact was reflected in all index’s of economy due
to high inflation, defecit in trade and current account, shortfall in foreign reserve
downword in the foreign remittances. However, Rupali Life Insurance Company Ltd.
kept up the business development by its own business strategy.
Achievement in 2011
Rupali Life Insurance Company Ltd. has been kept up the achievement of last 3 years
by acquaring a premium of Tk. 1,664.38 million in the year 2011. Although the
progress of growth was a little bit, it’s positive indication in the year 2011 for
insurance industry. A comparative graphical presentation for last 4 years is depicted
below:
particulars2011 Increase/ 2010 Increase/ 2009 Increase/ 2008

(tk. In (decrease)% (tk. In (decrease)% (tk. In (decrease)% (tk. In
million) million million million
st
1 year 605.96 (19.39) 751.71 32.15 568.84 38.55 410.62
premium
Renewal 1,056.41 23.59 854.79 23.89 689.96 40.22 491.99
premium
Group 2.01 386.97 0.41 68.94 1.31 1,200.00 0.04
premium
Gross 1,664.38 3.58 1,606.91 27.52 1,260.11 39.60 902.65
premium
1056.41
1200 605.96 854.79

751.71
1000 2009
689.95
800 568.84 2010
600 2.01 2011
2011
400 0.41
2010
200 1.32
2009
0
First year Renewal Group premium
premium premium
Achievement-2011
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COMPANY LTD.
Financial Results
Although the company has performed not well, yet the achievement in the year kept
up the glorious achievement of 2010. A comparative financial performence of the last
four years are stated below :
particulars 2011 Increase/ 2010 Increase/ 2009 Increase/ 2008

(tk. In (decrease)% (tk. In (decrease)% (tk. In (decrease)% (tk. In
million) million million million
Premium 1,664.38 3.58 1,606.91 27.52 1,260.11 39.60 902.65
income
Life fund 2,518.71 12.30 2,242.91 40.34 1,598.15 47.88 1,080.74
Investment 1,299.89 27.08 1,022.93 43.94 710.68 35.12 525.98

Investment 139.59 (29.25) 197.30 112.20 92.98 40.90 65.99
income
Management 925.66 15.30 802.81 26.31 635.58 33.95 474.50
expence
3000
2518.71
2500 2242.91
1664.38
2000 1606.91 1598.15
2009
1500 1260.11 1299.89
1022.93 2010
925.66
1000 710.68 802.81
635.57 2011
197.3
500
92.98 139.59
0
Premium Life fund Investment Investment Management
income expenses
Financial result
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COMPANY LTD.
Index Of Economic Progress
Performance of company gooddly measured by the Net Asset Value (NAV) and
Earnings Per Share (EPS). In addition to this cash flow also helps to analysis the
trends of financial results. Calculation of Net Asset Value, Earnings Per Share, Net
Operating cash flow and Net operating cash flow per share are based on policyholders
liabilities and surpluses, determined by the consulting actuary is tabulated below:
particulars 2011 2010 2009 2008 2007

Net assets value(tk. In 000) 585,859 427,853 153,216 69,134 38,904
Shareholders surplus 12,302 11,756 8,289 4,103 1,174
(10% of surplus Tk. In 000)
No. Of Shares 9,405,000 8,250,000 7,500,000 3,000,000 3,000,000
NAV per share 62.19 51.86 20.43 23.04 12.97
EPS 1.31 1.43 1.11 1.37
Net operating cash flow 142,255 658,699 392,996 368.195 261,034
(tk. In 000)
Net operating cash flow per 15.13 79.84 52.40 122.73 87.01
share
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COMPANY LTD.
Life Fund
During the year life fund of Rupali Life Insurance Company Ltd. has been added to
Tk. 275.80 million. Accumulated life fund for the year 2011 stood at Tk. 2,518.71
million, which is 12.30% higher than the previous year. The growth of life fund hsa
been lower due to fall of first year premium income and increase of payment on
account of policyholders for Tk. 166.28million over the previous year. However, the
growth achieved in the year 2011 seems to be well. This achievement was possible
due to the strict cost control, conservative commission schedule and efficient
management. The pictorial graph of enhancement of life fund for the last five years is
given below:
particul 2011 Incre 2010 Increas 2009 Increas 2008 Increas 2007
ars (tk. In ase/ (tk. In e/ (tk. In e/ (tk. In e/ (tk. In
millio (decre million (decrea million (decrea million (decrea million
n) se)% se)% se)%
ase)%
Life 2,518. 12.30 2,242.9 40.34 1,598.15 47.88 1,080.74 45.08 744.92
Fund 71 1
Investment Analysis
During the year 2010 there has been a remarkable increase of investment. This
achievement has been possible for strict cost control, enhancement of business
performance and pragmatic decisions taken by the board of directors and management
of the company. But in the year 2011 Capital market situation was unable to restrain.
Due to fall of first year premium income and increase of payment on account of
policyholders for Tk. 166.28million over the previous year, the target of liquidity was
also not achieved. However the investment was increased 276.96 million, which is
27
COMPANY LTD.
27.08% over the previous year. A comparative statement of investment is given
below:
(TK. In million)
particulars 2011 2010 2009 2008 2007
Fixed Deposits 395.56 282.08 309.07 270.43 198.53
Govt. Securities 642.50 502.50 357.90 211.90 142.90
Investment in Shares 239.34 224.08 34.62 38.25 19.58
Policy loan & others 22.49 14.27 9.09 5.39 3.62
Total 1,299.89 1,022.93 710.68 525.98 364.63
Increase (amount) 276.96 312.25 184.70 161.35 134.02
Increase/(decrease) % 27.08 43.94 35.12 44.25 58.12
Managenent Expenses
In the year 2011 management expenses to gross premium income ratio of the
company is 55.62% which is 5.66% more than the previous year due to fall of first
year premium income. A detail statistics is stated bellow:
(TK. In
million)
particulars 2011 2010 2009 2008 2007
Management expenses 925.66 802.81 635.58 474.50 373.26
Total premium 1,664.38 1,606.91 1,260.11 902.65 716.36
Management expenses as (%) 55.62 49.96 50.44 52.57 52.11

on Total premium
28
COMPANY LTD.
Claim Settlement
Rupali Life Insurance Company Ltd. is always committed to settle the claim properly
and rapidly. A statistics for 5 years’ claim settlement is appended below:
(TK. In
million)
Particulars 2011 2010 2009 2008 2007
Death claim 16.77 16.75 7.73 11.87 6.50
Maturity claim 129.27 44.16 - - -
Survival 271.85 217.45 162.58 127.77 72.89
Policy bonus 21.16 0.93 - - -
Surrender 10.50 3.98 2.50 1.71 2.10
Total 449.55 283.27 172.81 141.34 81.49
Total premium 1,664.38 1,606.91 1,260.11 902.65 716.36
% to total premium 20.01% 17.63% 13.71% 15.66% 11.38%
300 271.85
250
217.45
2007
200
162.58 2008
150 129.27 127.77 2009
2010
100 72.89
2011
44.16
50 11.87 16.75
21.16 1.71 3.9810.5
6.05 7.73 16.77 0.93 2.1 2.5
0
Death claim Maturity claim Survival Policy bonus Surrender
29
COMPANY LTD.
Solvency margin
Solvency margin is the another measures of index of a company. It states in the
section 43 os insurance act 2010 to maintain a minium Solvency margin of each
insurers. Financial ability of a company indicates through the Solvency margin. A
three years comparison of Solvency margin of Rupali Life Insurance Company Ltd. is
stated bellow:
Particulars 2011 2010 2009

(a)Value of total assets 2,922.39 2,534.88 1,272.31
1)Liability to policyholders 2,472.98 2,203.11 1,544.22
II)Other liabilities as per 93.25 110.33 31.16
financial statements
(b)Total liabilities(I+II) 2,566.23 2,213.44 1,575.39
(c)Net Solvency margin(a-b) 356.15 213.44 (303.07)
(d)Required Solvency 102.65 92.54 63.02
margin(4% of liabilities)
(e)Solvency margin ratio 3.47 2.39 (4.81)
Capital Market Performance

Rupali Life Insurance Company Ltd. has flooted its shares for general public in the
year 2009. The highest value gained is Tk. 274 while the lowest value was Tk. 117
accross the year 2011. The market analysis of shareholding of the company at the
close of the year 2011 reveals a 24.54% holding by investors account, 5.30% by
mutual fund, 1.99% by unit fund, 11.35% by institutions and 56.82% by general
public, representing total 57,37,300 shares.
11.35% 5.30%
1.99% General public
24.54% 56.82% Investor account

Unit fund
Institutions
Mutual fund
30
COMPANY LTD.
Mutual Fund
Feeling the necessity of mutual fund in the capital market operation, the company has
decided to float a mutual fund namely “Rupali Life First Mutual Fund” of Tk. 100
crore in 2009 and obtained the permission from the Securities and Exchange
Commission. The company could not open the subscription of the fund due to
abnormal situation prevailing in the capital market. But later on 31 January 2012, the
company decided to reduce the size of the fund to Tk. 50 crore and on March 2012
Securities and Exchange Commission has accorded their consent. After completion of
private placement prospectus has been submitted to the Securities and Exchange
Commission in the mid of June 2012, they belive that they can open the subscription
of the fund very soon.
Information Technology
Keeping this in the view that, there is no alternate way to render prompt and better
services to the policyholders.they are trying their best for strengthened their IT
department. Customers are getting their policy information at once through SMS
service. IT service points have been covered through online. More over Head Office is
alawys ready to face any type of critical situation very promptly. They are trying to
provide super service to the customers, accordingly they are trying to adding value in
the IT infrustructure.
Dividends
The Board of Directors has recommended a stock dividend of 14% (14 share for every
100 shares held by the shareholding) for the year 2011 on the paid up capital of Tk.
94.05 millions.
Bonus For Policyholders’
There is a provision in the insurance Act, that minimum 90% and maximum 97.5% of
surplus should have been distributed among the policyholders as bonus. The company
has declared policyholders bonus for the year 2011 for the valued enforce
policyholders. A 4 years comparative figure of policy bonus declared is appended
below:
(Rate of eversionary bonus per thousand
taka)
Terms of policy 2011 2010 2009 2008

8years to 14 years Tk. 30 20 15 10
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COMPANY LTD.
8years to 19 years Tk.32 22 17 12
20 year to above Tk.35 25 20 15
RATIO ANALYSIS
Current ratio
The current ratiois a popular financial ratio used to test a company'sliquidity(also

referred to as its current orworking capitalposition) by deriving the proportion of
current assets available to covercurrent liabilities
The concept behind this ratio is to ascertain whether a company's short-term assets
such as cash,cash equivalents, marketable securities, receivables and inventory are
readily available to pay off its short-term liabilities such as notes payable, current
portion of term debt, payables, accrued expensesand taxes. In theory, the higher the
current ratio, the better.
Formula:
Current Ratio = Current Assets/Current Liabilities
Particulars 2010 2009 2008 2007
Current ratio 2.97 : 1 3.79 : 1 5.51 : 1 3.65 :1
32
COMPANY LTD.
Quick Ratio:
The quick ratio also known as the acid-test ratio - is a liquidity indicator that further
refines thecurrent ratio by measuring the amount of the most liquid current assets
there are to cover current liabilities. The quick ratio is more conservative than the
current ratio because it excludes inventory andother current assets, which are more
difficult to turn into cash. Therefore, a higher ratio means a more liquid current
position.
Formula:
Quick Ratio = Quick Current Assets/Current Liabilities
Particulars 2010 2009 2008 2007
Quick ratio 2.46 :1 3.28 : 1 5.19 : 1 3.13 : 1
33
COMPANY LTD.
Return On Capital Employed
The Return On Capital Employed (ROCE) ratio, expressed as a percentage,

complements the returnOn Equity (ROE) ratio by adding a company's debt liabilities,
or funded debt, to equity to reflect acompany's total "capital employed". This measure
narrows the focus to gain a better understanding of a company's ability to generate
returns from its available capital base
By comparing net income to the sum of a company's debt and equity capital, investors
can get a clear picture of how the use of leverage impacts a company's profitability.
Financial analysts consider the ROCE measurement to be a more comprehensive
profitability indicator because it gaugesmanagement's ability to generate earnings
from a company's total pool of capital.
Formula:
Return on Capital Employed (ROCE) = Profit / capital employed x 100
Particulars 2010 2009 2008 2007
ROCE(%) 18.45 16.36 17.65 17.23
34
COMPANY LTD.
Return On Asset (ROA):
This ratio indicates how profitable a company is relative to its total assets. The Return
On Asset(ROA) ratio illustrates how well management is employing the company's
total assets to make a profit.The higher the return, the more efficient management is in
utilizing its asset base. The ROA ratio iscalculated by comparing net income to
average total assets, and is expressed as a percentage
Net income
Return on assets =
Average total assets
Particulars 2010 2009 2008 2007
ROA 17.81 12.33 14.52 12.36
35
COMPANY LTD.
Earnings per Share EPS
The portion of a company's profit allocated to each outstanding share of common

stock. Earnings pershare serve as an indicator of a company's profitability.
Net income− dividends on preferred stock

EPS =
Average outstanding shares
When calculating, it is more accurate to use a weighted average number of shares

outstanding over the reporting term, because the number of shares outstanding can
change over time. However, data sources sometimes simplify the calculation by using
the number of shares outstanding at the end of the period.
Earnings per share is generally considered to be the single most important variable in
determining ashare's price. It is also a major component used to calculate the price-to-
earnings valuation ratio.
For example, assume that a company has a net income of $25 million. If the company
pays out $1million in preferred dividends and has 10 million shares for half of the
year and 15 million shares forthe other half, the EPS would be $1.92 (24/12.5). First,
the $1 million is deducted from the net income to get $24 million, then a weighted
average is taken to find the number of shares outstanding (0.5 x10M+ 0.5 x 15M =
12.5M)
An important aspect of EPS that's often ignored is the capital that is required to
generate the earnings(net income) in the calculation. Two companies could generate
the same EPS number, but one coulddo so with less equity (investment) - that
company would be more efficient at using its capital togenerate income and, all other
things being equal, would be a "better" company. Investors also need tobe aware of
earnings manipulation that will affect the quality of the earnings number.
Particulars 2010 2009 2008 2007
EPS 1.43 1.11 1.37 0.39
Higher EPS ratio indicates financial strength is more strong.
36
COMPANY LTD.
Debt-Equity ratio
The debt to equity ratio is another leverage ratio that compares a

company’s total liabilities to its total shareholders’ equity. This is a
measurement of how much suppliers, lenders, creditors and obligators have
committed to the company versus what the shareholders have committed.
To a large degree, the debt-equity ratio provides another vantage point on a

company’s leverage position, in this case, comparing total liabilities to
shareholders’ equity, as opposed to total assets in the debt ratio. Similar to
the debt ratio, a lower the percentage means that a company is using less
leverage and has a stronger equity position.
Total liabilities
Debt-Equity Ratio =
Shareholders’ Equity
Particulars 2010 2009 2008 2007
Debt-Equity 0.63 0.43 0.41 0.37

Ratio
37
COMPANY LTD.
Short term debt coverage ratio
This ratio measures the ability of the company’s operating cash flow to meet its
obligations- short term debt. It is one of the operating cash flow coverage ratios.
The operating cash flow is simply the amount of cash generated by the company from
its main operations, which are used to keep the business funded.
The larger the operating cash flow coverage for these items, the greater the company’s
ability to meet its obligations, along with giving the company more cash flow to
expand its business.
Operating Cash flow

Short- term Debt coverage=
Short−term Debt
The short term debt ratio shows how adept the firm is to meet the short term
obligations. If it has a large shot term debt ratio it means it can easily pay the short
term debt using the cash which is generated through its operating activities.
Particulars 2010 2009 2008 2007

Short term debt 1.5 1.1 1.7 1.3
coverage ratio
38
COMPANY LTD.
Price/cash flow ratio
The price/cash flow ratio is used by investors to evaluate the investment

attractiveness, from a value standpoint, of a company’s stock. This ratio compares the
stock’s market price to the amount of cash flow the company generates on a per-share
basis.
Stock price per share
price/cash flow ratio =
Operating cash flow per share
operating cash flow per share: a value calculated by dividing a firm’s operating cash
flow (minus dividends) by the number of shares or the capital stock that are
outstanding.
For life insurance company the operating income is high because they have a larger
premium money but sometimes the claim are not much high, so the ratio may be very
tiny.
Particulars 2010 2009 2008 2007
price/cash flow 1.2 1.98 1.46 1.45

ratio
39
COMPANY LTD.
Price to earnings ratio:
The price/earnings ratio (P/E) is the best known of the investment valuation
indicators. The P/E ratio has its imperfections, but it is nevertheless the most widely
reported and used valuation by investment professionals and the investing public. P/E
ratio is an off- quoted measure of the ratio of the market price of each share of
common stock to the earnings per share. The price-earnings (P/E) ratio reflects the
investors’ assessments of a company’s future earnings.

Price/Earnings Ratio =
Earnings per share
Particulars 2010 2009 2008 2007
price/cash flow 0.072 0.065 0.051 0.042

ratio
A stock with a high P/E ratio suggests that investors are expecting higher earnings
growth in the future compared to the overall market, as investors are paying more for
today's earnings in anticipation of future earnings growth. Hence, as a generalization,
stocks with this characteristic are considered to be growth stocks. Conversely, a stock
with a low P/E ratio suggests that investors have more modest expectations for its
future growth compared to the market as a whole.
40
COMPANY LTD.
Price to sales ratio
A stock's price/sales ratio (P/S ratio) is another stock valuation indicator similar to the
P/E ratio. The P/S ratio measures the price of a company's stock against its annual
sales, instead of earnings. Like theP/E ratio, the P/S reflects how many times investors
are paying for every dollar of a company's sales.Since earnings are subject, to one
degree or another, to accounting estimates and managementmanipulation, many
investors consider a company's sales (revenue) figure a more reliable ratiocomponent
in calculating a stock's price multiple than the earnings figure. Price to sales ratio
tends tofocus on the annual sales of a firm considering the each stock price.

Price/Sales Ratio =
Net sales(Revenue) per share
Particulars 2010 2009 2008 2007
Price/Sales 7.897 6.526 5.983 5.983

Ratio
41
COMPANY LTD.
RISK FACTORS AND MANAGEMENT’S PERCEPTION ABOUT

THE RISKS
Investors should be aware of the risk factors for the investment in the capital of the
company and the management perception about the risks. These risks may result in
loss of the capital investment. The following are the external and internal risk factors
and the management’s perception thereon: -
1. General investment risks: Investors should keep in mind that there is a difference
between equity securities and debt securities. As a residual owner, the claim of an
equity shareholder comes last and in an extreme situation he/she may loss his/her
entire investment.
Management perception The management does aware about the equity shareholders
position of getting their respective claims and believes that this kind of extreme
situation would not arise.
2. Interest rate risks: Changes in interest rates may negative affect its financial
results in case of interest rate increase by lenders and also interest decrease on
deposits by RLICL
Management perception: The company has so far, not had to depend on debt
financing. The management of RLICL will reduce these negligible risks by investing
the fund in land and building according to Insurance Act, 1938 and Insurance
Rules,1958.
3. Exchange rate risks: The change in currency exchange rates may influence the
result of operations, in case of the companies who are involved in foreign currency
transaction.
Management perception: Rupali Life Insurance Company Ltd. does not have any
foreign currency transaction. Therefore no such risk would arise.
4. Industry risks: Liberalization of permission to set up more insurance companies

by government may result in severe competition amongst insurers reducing premium
income and profitability.
Management perception: Though liberalization of insurance policy by government

may be encouraging to new entrants resulting tough competition, Rupali Life
Insurance Co. Ltd. does not apprehend any loss of business due to its competent
management team for qualigy services and expanding trend of insurance business in
42
COMPANY LTD.
the country. The Company has already proved its leading role by its attractive earning
performance.
5. Technology related risks: Although life insurance business is a relatively low tech
industry, any sophisticated integrated software by other competitors any give them
competitive edge on RLICL as far MIS and quality service is concerned.
Management perception: RILCL is continuously upgrading its technological levels

and making it comparable to that of the other competitors in line with the insurance
business.
6. Potential or existing government regulations: Government policy change in

respect of imposing new tax, VAT, stamp duty and limitation of investment may also
affect smooth functioning of life insurance business.
Management perception: Like all democratically elected governments, the

government of Bangladesh also holds commitment for freedom from economic
emancipation of the nation, which can be achieved through maintaining sustainable
industrial growth. The government, which is the owner of Jiban Bima Corporation is
not expected to change policies relating to insurance requirements, affecting the
income of the insurance companies.
7. Potential changes in global or national policies: Any structural change in the

international insurance business adversely affecting reinsurance operations may have
negative impact on the profitability of the company.
Management perception: The history of insurance/re-insurance business for over

two hundred years proves that any major structural change affecting our reinsurance
business is unimaginable. Any such event would create a global destabilization that
the major economies must not cause to happen.
8. Operational risks: The company may face poor financial conditions due to failure
in future expansion of business or inefficient management capability.
Management perception: From the inception, the Company has a good reputation in
the insurance business and progressing smoothly. The management of the Company
has also proven its efficiency, which is clear from the previous positive track record
the Company’s financial statements.
43
COMPANY LTD.
9. Political risk: Political and social condition may affect the smooth functioning as
well as drastic fall to the value of its investments.
Management perception: The management has been very selective in its investment
decisions that have already produced positive results. It feels government will not
create any situation leading to abrupt losses of investments, especially when industrial
output is showing signs of growth.
10. Natural risks : The coverage of natural calamities like cyclone, flood and tremors
by insurance may severely weaken the financial strength of the company by accruing
heavy claims on account of loss of huge human life.
Management perception: Risk is an important consideration for premium calculation

of any insurance policy. The estimated losses arising from natural calamities are
covered by higher rates of premium and reinsurance coverage for such losses.
Management has taken into consideration statistical assessment of occurrence of
natural calamities in setting its rates of premium and reinsurance risk.
44
COMPANY LTD.
The information in respect of its business operation:
45
COMPANY LTD.
Findings
 Rupali Life Insurance Company (RLIC) is one of the leading Life

Insurance Companies in Bangladesh.
 It has a very dignified management having magnificent professional
Identity, illustrious educational background and honesty.
 The Company transact a wide range of Life Insurance business in
Bangladesh and has gradually developed goodwill and expertise in the
field with sound and stable financial position.
 It emphasize professional skill development through continuous
education and field training.
 Their quality products have already drew the attraction of general mass.
 The company is engaged in life insurance business and has no subsidiary.
 Maintain strict cost control, conservative commission schedule and
efficient management.
 Always committed to settle the claim properly and rapidly.
 Their Web site is not developed as the other Life Insurance Companies.
 They are trying to adding value in the IT infrustructure.
 Provide dividend regularly.
 Due to fall of first year premium income and increase of payment on
account of policyholders in 2011, the growth rate is not satifactory but
overall financial condition is not bad in 2011.
46
COMPANY LTD.
Conclusion
Since its establishment on 28th December 1999 as one of the leading life insurance
companies in the private sector, the company has within a short span of time
established itself as one of the most reputed and trustworthy life insurance companies
in the country. Selective customer service, underwriting of liabilities and prompt
settlement of claims have contributed towards building up a very respectable image of
the company within the business community.
RLIC's policy of developing local talent to resource its operations has greatly
contributed to its success in understanding, meeting and responding quickly to chang
customer needs and market condition. They are primarily staffed with local personnel
who are constantly studying the needs of individuals and developing innovative
products to the specific requirements of each district of Bangladesh. This long-
standing approach is the foundation of their leadership, because they understand local
market needs and conditions.
47
COMPANY LTD.
References
1. Financial Statement of 2008-09, 2009-10, 2010-11.
2. http://www. rupalilife@yahoo.com
3. Direct conversation with employees of Rupali Life Insurance Company Ltd. Barisal
branch.
48

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“FINANCIAL STATUS AND MANAGEMENT PERFORMANCE ANALYSIS”, STUDY ON RUPALI LIFE INSURANCE

Committees of The Board

Chairman Vice Chairman

Ex-Directors & Sponsors

Rupali Life Insurance Company (RLIC)

Deputy Managing Directors

Executive Vice Presidents

Senior Vice Presidents

Deputy Vice Presidents

Sr. Asstt. Vice Presidents

Asstt. Vice Presidents

11th Annual General Meeting (AGM) 2011

Mr. Mahfuzur Rahman( 5th from the left)

Policy holders’ Bonus

Term Bonus per Thousand Taka

(for all plans)

08 years to 14 years Tk. 30

15 years to 19 years Tk. 32

20 years and above Tk. 35

Products and services

 To serve participants with best satisfaction.

Date of Incorporation 28th December 1999

Paid up Capital 8,25,00,000

Registered Office 7, Rajuk Avenue

Re-Insurer SCOOR Global Life SE, Singapore.

Auditors B Alam & Co.

Consulting Actuary Mohammad Sohrab Uddin Ph.D, AIA

Tax Advisor Md. Delwar Hossain, FCA

Legal Advisor A. F Hasan Arif & Associates

Bankers Exim Bank Ltd., Bangladesh Krishi Bank, Islami Bank

Telephone 9571355, 9566541, 9566527

Brief Overview of the Company

Description Ordinary Shares Par Value (Tk.) Amount (Tk.)

Public Offering 450,000 100 45,000,000

Paid up Capital after IPO

Particulars Capital in Taka

New business (TK. In million)

Year No. Of Policies First Year Premium

Year No. Of Policies First Year Premium

Year No. Of Policies First Year Premium

Takaful Deposit Penson Scheme

Year No. Of Policies First Year Premium

Year No. Of Policies First Year Premium

Rupali Khudra Bima

Year No. Of Policies First Year Premium

Shariah & Sanchaya Bima

Year No. Of Policies First Year Premium

Year No. Of Policies First Year Premium

First year premium (TK. In million)

particulars 2011 2010 2009 2008 2007

Samajik Bima 57.54 50.86 31.30 45.45 47.22

Islami Bima 257.66 325.63 267.10 155.02 118.36

Takaful Deposit Penson Scheme 86.46 136.74 92.37 67.01 34.76

Rupali Deposit Penson Scheme 10.73 20.26 16.61 19.70 21.02

Rupali Khudra Bima 21.49 20.66 23.25 17.93 19.85

Shariah & Sanchaya Bima 9.25 8.99 6.24 2.79 1.57

Al-Amanat Bima 2.45 4.37 4.70 4.31 -

Total 605.96 751.71 568.84 410.62 337.13

Renewal Premium (TK. In million)

particulars 2011 2010 2009 2008 2007

Samajik Bima 139.46 145.78 132.41 117.98 103.60

Islami Bima 403.90 270.56 188.56 111.52 72.82

Takaful Deposit Penson Scheme 137.94 106.29 63.34 34.05 18.50