Padma Islami Life Insurance

Bismillahir Rahmanir Rahim
Assalamu Alaikum Wa Rahmatullah.

It is my great privilege and honor to welcome you all to the 21th Annual General Meeting and present the Annual Report along with the Audited Financial Statements of Padma lslami Life Insurance Limited (PILIL) for the year ended 31 December 2019.

Valued Shareholders,

I am very glad to inform you that 2019 was the first full year of new Board�s activities as it was reconstituted in October 2018. At that time the Company was facing a lot of high risks and extreme challenges.Those were, among others, declining business, severe liquidity crisis, huge unsettled claims, overstaffing, wanton mishandling of assets, mismanagement etc. which led the Company to lose its market share in the life insurance industry of Bangladesh.

By the grace of Allah SWT, Year 2019, the first year under new Board�s management brings attributable change, sustainable progress and alluring presence in the peer industry over- coming all those adversities one after another. Premium collection during the year was Tk. 66.21 crore as against Tk. 58.87 crore in 2018 posting a growth of 12.50% in 2019. On the other hand, management expenditure was reduced with a concerted effort by 34.85% from Tk. 39.13 crore in 2018 to Tk. 25.48 crore in 2019. During the year, we have paid Tk. 68.75 crore in settlement of claims.

In view of our last year�s commitment our endeavor was to establish a positive organizational transformation through structural changes, policy improvement, operational and financial control measures, rationalizing manpower requirement, closure of perennially loss making Branches, augmentation of agency network, implementation of online integrated full- featured ERP software, and above all payment of outstanding claims. The Board, in coopera- tion with management have so far been successful to implement the above mentioned steps substantially to bring life back to the company. Going forward, these exercises are intended to continue relentlessly, Insha-Allah.

Dear Friends,
The new Board is determined to continue the business of Padma Islami Life Insurance Ltd. with utmost honesty and transparency within the purview of ethical, Shariah and legal frame- work as we try to accelerate growth in our key focus areas, while continuing to serve our customers with high-quality and value-based, delusion & hassle-free insurance products and services.

The top priorities of the Board at this time are to settle legitimate outstanding claims, optimize operational costs and ensure control at all levels of the Company�s affair effectively.To this end the Board and the professional management team have been working tirelessly to attain a robust and noticeable business result.

Valued Owners,
You all know that the recent surge of the global pandemic of the Corona virus has already caused, without exception, havoc to the lives of people and economies of the entire world, particularly smaller economies like ours resulting in thousands of deaths and a near-total shut down of all economic activities. It will, therefore, be prudent to take a cautious estimation of the affect this pandemic and other acts of God (e.g.flood, locust etc.) will have on our business in time to come.

By all estimation, the positive premium and investment income growth in 2019 for most insur- ers cannot be maintained in 2020; particularly life insurers will face the complex and negative economic and social implications of COVID-19. The COVID-19 outbreak has also had a knock- on effect on financial markets and this will adversely affect the investment performance of life insurers in 2020.

According to the global business giants, keeping existence will be the most desired goal of the players in corporate world.With the help of Almighty Allah SWT,we are not pessimistic, we hope to move forward to achieve company�s goal in cooperation with all concern. I thank you, our valued owners, for your kind support and for reposing your confidence on us to lead your company towards a bright future.

My Friends,
We are determined to establish corporate governance, discipline, integrity, transparency and management accountability in your Company. We always welcome your prudent views, suggestions and guidance as owners of the Company for better management.

I would like to extend our sincere thanks and deep appreciation to Insurance Development & Regulatory Authority, Bangladesh Securities & Exchange Commission, Dhaka & Chittagong Stock Exchanges for their wisdom, continued guidance and cooperation during this critical time.

Finally, I am endlessly grateful to Allah Jaojal for everything and thankful to my colleagues for their sincere effort and invaluable stewardship of the Company since their appointment to the Board. On behalf of the Board and on my personal behalf, I would like to express my sincere thanks to all of our employees, clients, suppliers and other stakeholders for providing their continuous valuable support in achieving our corporate goals.

May Allah SWT protect us all.
Professor N R M Borhan Uddin, Ph.D.
Chairman of the Board