33, \ Ken J i py) Babee Sayer comes fers ‘| EASTERN INSURANCE CO. LTD. (De Syrlabof Coeprcheroive Seowrity)KEY We are making INFORMATION things better 2018 together ase Rated by: ACRSL {Government approved Credit Rating Agency} __ 546 22,950 Gross Claim Total Assets -_ Profit After Tax Underwiting 46% 20% Retum on Share Cash Dividend CapitalCONTENTS Company Information O 4 Shareholders’ and Investors’ Information 5 4 Corporate Governance and Financial Highlights 5 8 Auditors’ Report ond Financial Statements ] 05 Branch Network ] 61 Proxy Form ] 6 5 \ ra | STERN MsuaANCE co. LT.TRANSMITTAL AU Shoehlders Bangledesh Sette ond Exchange Commision (SEQ ‘Insurance Development ond Regulctary Authority (IDRA) Regt of ein Stock Compenis ord Firms (RISC) Dhoka Stock chong Lined (OSE) ard Gitagong Stock Exchange lini (58) DearS 6), INUAL REPORT FOR THE YEAR ENDED DECEMGER 31,2018, A copy o the Annual Rept long with the Audted Finacial Stoternis inclding Balance Sket oso December 31, ‘2018 and Pit lass Aout, Revue Accounts, Satemet of Cash Flows, Chnges of Sherehelde Equity fr he yer ended December 31, 2018 together wih ales tteeon of Entra Insurance Capon United is bing endesed herent fond information and ead Wi the bes epad, Yous fitily, Ww) (Mcharad Horcon Pawan) ‘Manoging Director & CEOINFORMATION ddl 06-14 Vision 15 Mission 16 Objectives: 17 es a (Core Strengths 19 Bisiness tics 20 ‘Strotegic Objectives 21 | Golf 1 1 eonponys rte Nonogerent Pie Oigenogian ‘Management Team of Head Office (Conipani Peformance at Glance ond Ganicl Presentation 36-42 & _Cotfcote of BAPLC 43 ‘View of 32nd Annual General Meeting 44-46 Vow sfBine Ndo-2018 48, Vow of Enging Msi nsvione Anods AQ) ‘Message from Managing Director CEO 59-53, ea, | STERN MsuAANCE Co. LT.a Registered Office Phone & Fax Mail & Web-site Legal Bodios Lawyers ‘Main Bankers CORPORATE 44 Dilushe (A (Is & 2nd Foo), Dhako-1000, Bangladesh Phone: 9563033-34 & 956474648 fox: 88-02-9569735 emai: eicl@shobo.net Web sito: wun. oosterninsurancetd com Auditor Vs. A. Wahab & Co. hanered Acounants Hotel Pubon Anes? (th Flea) 1 Dilkusha C/A, Dcko-1000 Boris Md Oo Forouq Advocate Mushog Ahmed Prime Bonk Limited Seuthens Bonk Linited Islami Bank Bongodesh Limited The Freier Bonk Liited STERN INSURANCEBOARD OF DIRECTORS LS ; CHAIRMAN Mujibur Fatman VICECHAIRMAN —Azmal Hessoin DIRECTORS Majer (Retd.) Abdul Mannan Motu Rhine 5.0.lom, ‘Mohan Nola ‘Unme Kulsum Nannon Rovwaok Fain holed S hed Durond Nekdeda Ramon Rekeyo Ferdous Mohamed kal ezilnded Hossa Reis Uddin Monnen {oka Pokran Tees Rahman Neyeerur fohman INDEPENDENT DIRECTORS A.T.K. Mls NM lotr Hosni, FA MANAGING DIRECTOR & CEQ Moharemad Haroon Poor, com, MBA COMPANY SECRETARY Md Shornsal AminPROFILE OF THE DIRECTORS Me Mujibur Rahman Chairmen ‘Nc, Mjitur Robman is the Chairman of the Boord of Directors of Eosiem Insurance Campany Unite. He is 80 the Depuy Managing Diecor of tom Group of ampanies whic comprises of cheut 15 ns. fComports, vi Utor Mets LW, Utoro Apperes Lid, Ustera Senices LM, Uttra Knitwear Lt, Uttoa Avtomabile Nonwfcrers Ud, Uno Tye Rerendng Co, Ld, Merolo Motos Ld, Hall Nas, Phamnaceuiicols Lid, Uttara Motors Cerporotion Lid. etc. He is also o Director of Uttora Finance & Investments Ltd, Notional Life Insurance Company Ltd, Utero Exchange ond Securities Lid., UGC Securities Lid,, Ensiem Securities Lid, Eastern ‘Motors Lid, EASTERN INSURANCE: ef arPROFILE OF THE DIRECTORS ojor (Retd} Abdul Mancan is © Sponsor Dieclor of the Compary who has comed nome end fre inthe basins ceo ofthe County ding the lst 3 decades He is regarded os oe of tte Pioneer inthe Garments Set of Fanglosh. Ho wos ore of the fow people whos vision was for the crpleynent of rion of unemplayed women inthe Gomenis Ser. He is tow Choimen of leoing buses ose othe County AY. Sunman Gop of Compenies. He is invohed in the busivess of Geinents, Texies, Fhermaceta, Aiton, Fig, Shipging, Lease, sven, Berge, NG, Rol site, Tlcommaniation ee. Besides Mr. Monran hos oo iversified his business at heme and abroad. He hes established his industrial nit ct Conta ond one buses unit t USA He ao the Chien of ‘Sueflower Life Insurance Compeny Lid. He has inboduced fist Private Helicopler Sesie in Bangladesh, He vas eleded IP. vice fom Dhalo-10 orstivency in 1991 ond 2001. He wos State Minister of Texile ond State Minister of Giri ‘Aviation & Tourism in the Cabinet of 1991-1996. He has been eleded os a ‘Member of Parliament in 11th Notional Porkoment Election 2019 ftom loksmigu (fomgot-Fomdnaga Upaila) set ‘Nt Marneniso scl wiker ond estblished meny Scho, adioshe, College Orphen homes. Major (Ret) Abdul Mannar, MP ‘Ws, Nati Roman iso Sponsor Detar fthe compuny who i the Chairman Menaging Director of Ut Gop of Companies. |W Mate Rehman wes eeced os founder President of Joan-Borgladesh Chanber of Conmere and Indasty and send ftom June 2004 to March 2004. He served os President of Dhak Chamber of Commerce end Indust for ‘wo consecatve terms in 2002-2003. Ar. fohman is the member of Bonglodsh Thai Chem of Camere ond Industry and Vice Coirman of Utlom Finonce ond vestments Ud Mr. Matiur RahmanPROFILE OF THE DIRECTORS As. Nohonmned Mohse iso Sponsar Dieter ofthe Company. He isthe Giron of Hobe Ud ond Fe Mlb Co. Ud He ses he Chiron of Rahim Sel Mil Ud. 8 Sonogeon Steels Ud. od Died of Dime Sel Products (, (Mt) Uo. He iso Menber of freien Sect ef Mechel Engineess, USA ond Asscciation of kon & Steel Engineers, USA. He is the President of Smell & Coptive Power Association ond Executive Member of Aran Chander ef Conner. ARS. Mr. Mohammed Mohsin ‘Nt. S. D. Alam is 0 Sponsor Director of the Board of Directors of Eestorn Insurance Company Lid. He is also 0 Managing Director of MVS. Rongoreati ‘Motors Ltd. He wos engaged with the business reloted 10 Ship Building since 1966 and Assembler & Distributor of Trucks end Buses since 1972. Beside these, row hei avhed with Teding Business and Managing Diecr of Tenov BPO United oF cuboung buses having of in Bangles, Si lorka ond USA eso ied Fight, on Ecuve Commie enero Seco Conmandes Fora: ond he President of Dhol Potash Mulijudéha -Atotogom Axo, He so menber of TB sine inception, Member of Red Gescent ond Chitegeng lions Cub. He isthe Fourder of haf Shor ‘Alon Gvermert Registered Primary Sthel - Mr.S.D.Alam A \ ‘Nx, Durand Mehdodu Rotman fsa Sponsor Der of he Bondo Deco of Eastern Insurance Company Liniled. He is obo the Depuy Managing Airc of Une Greup of Componies wich comps of aba 15 nos. f Compares, vie Unere Nolo it, Utoxo Appa Ui, Ute Senices Lid, Ure Koitwears Ld, Utore Avante Marudi, Utero Tre & feteading (o, ld, Menska Motos Ld, Hol MerksPhamaceucels Ld, Ure Motos Corporation Ud, Trens Asa Indstios Ud. ee. Ho is so 0 Uircor of Utora Finone & Investments Ud, Nona ie aura Co. Ld, Uta Exchonge Secures td, UGC Secu Lt, Eason Sexes Lid, il PonteinPROFILE OF THE DIRECTORS ‘Kole S. Ahmed is Sponso:iector of the Boodof Died of Ecsten lesrone Comgory Lee, He gots educoion fom USA. He's Dieco of ‘Hj Group of Compares, He i invehed wih the basins ated to Steel, ld Stooge I Tlecammnicten,Tocng et. Hes oko a Direor of United Hostal id, Gulshan, Dhaka, Mr Khaled 8. Ahmed ‘Nt, Nohommed Ason is @ Spensor itetar of the Boor of Diedos of ase Insuarce Company Liited. He isthe Die of Hashem Elec Co. ud, Hoshem Pope Mls id. ond Hester Real Eso Co, Ud Mi. Mohammed Ahsan ‘Nr Ravn Keri is @ Sposor Diecor ofthe Boor of Cites of Ester Insaco Company Limited, He is ongagod i Lather and Roa stot lated basins, Mi. Rawmak Karim (© EASTERN wusuRANcE co. LT, ia, TnPROFILE OF THE DIRECTORS Ms. Une Kslsy Hann is noth post incor oth Company, She isthe Vie Chaimon of Sunmen Grup of Compare. The Gu acialy ‘engaged in Garments, Tediles, Phormaceuticals, Aviation, Shipping, leosing, Inarce,Berecge, I, (G,e. Sh is he Vee Chairman af Sunflower life Insurance Co. itd. Mrs, Umme Kulsum Mannan is Rokey Ferdousis Dire of he Board of Deters of Easem insuonce Cempny Ui, being nominee by Sunmon Sveters Li, Sh i oo Direcor of Sune life Iason Comyn i. od To len Neo Ld Mrs Roeya Ferdous 1k, Mofanned Isl o Dieter of the Boo cf Diets of fostan Irs (o, Ld Hes obo the Menaging ier of him Ste ils Co, (Fst) UW, Diamond Sel ducts (Ud, Robin neg Ui, ero Alby GaP.) Le. ond ator Borges (it) Ud. Mr Mohammed IsrailPROFILE OF THE DIRECTORS ‘Wy, fos Uddin iso Director of the Booed of Directs of Eastern Insurance Conpory i. being rominoied by Piener Dresses ltd, He is oso o Drectr of Suaflower Life Insure Compony Ud, Seuth Asion Ailes Ud, Sune ‘Shoes Ud, Top Ten Media Ud ond Dei Fostons Li, Mr. Rais Uddin ‘Ms. kia Fobman is 0 rector of he Board of Directors of Ester Irsuoace Company Li. She is obo o Decor of Unaa Finance & lvestmens Ld. She ‘the Dect ofdferet Compares of Uno Group. Mrs. Zakia Rabman AM. Kori Indad Hossin iso Decor ofthe Bord of Dito of Eastern Insuorce Company U6. beng nominated by Uttoo Apparels Ld. He is he ctie Direcr of Utora Motors Li. He iso retr of Uta Finoce ond inestments Ld nd Ntienel Life saree Co Ld. Mr Kazi Imdad Hossain EASTERN INSURANCE papaPROFILE OF THE DIRECTORS ‘Mv, Noyeemer Rehan is 0 Diecor ofthe Bod of Ducts of Estrn Inswance Compo United. He get his edecetion fom England. Carently he i engeged wth the HE & Brond Monegenent of Utim Gioup of Cemmpenies which is comprised ot about 15 rs. of Compenis, viz Uta ‘Motors Ud, Ura Appel i, User Sonics Le, Ur freer i, Utoro Automobile Manufacurs Lt, Utero Tye & Retoding Ud, Monolo Motos Lt, Hall Noiks Phormaceuicas Li., Utior Motors Cerporatin Ud Mr. Nayeemar Rahman 1s. ance Rohmoniso Dieder fhe Bord of Dect of Esem nunce aoony itd bing monirted by Ute ropeies Ud. She got ber edveaion from Austlia ord Condo, She is ako engaged in eoding pofesin Ms. Tazreen Rahman 1s. Torna Nornenisa Died ofthe Boo of Deters of Est Insurance emp United being norinetd by Apho Terie td. she hos competed her Bachelor cf Business Adninisretion fiom Nertiensem Univesity in Bison, witha concen in Finnce ond Enreprenestip opra moved on 0 wetkng for Soe Shee Bonk cs Fund Accountant, ord cfr ot Stee See Gotol Advisns fr Coptl Pamttg ond Notketig, In 2012, she ‘moved fiom Boston to NYG, where she tok on the job of Business Development for 8 Intligeace ot Busines Inside, Digital News Phorm, She hes obo been « Cicero Soman GibolExpess, 0 money enitonce cermany in NY since Hay 2012 Teno cons the Psdent ot Suma Gop of Conpais and plas an ‘active role in its opparel lines of busines. Ms. Tajfina MannanPROFILE OF THE DIRECTORS AMAT. KM tals Independent Der of Ease see Company Ud. Hes BA (Hons), MAin Enon tom Dol Univers, competed ne yar Pot Gite Dpla in GS (Goyephic formato Ser) fm tho ltencenl Intute of Aecspce Sey ond Eth Scenes The Neteondsin 1989 od oho completed fos Grdvcte Oona in fopulsion Scenes, Dla Unieriy in 2007. bois RtiedSeceay he Goverment of Bangladesh Hes the Goimon c the Boud of Ault Connitee of Uta France ond Ivstnens Lind. W lmailcended Food Adninsto’s Cause ot the Coracion Inenetionl Grins Insti Winnipeg, Conede, cftenéed Pocuement Nanogen ining fom the IstenainalTnng Cre cf MO, Tui, tol ard tining en Manin ot he Tep (NAT fom Bishan Usivesty and the {UC Gi soi Colge Ik nal ¢ sly epaienad psn in Margot and cher se (Headed th Lobou Wig the BorgadshEbss in Kuve, ceoptened in Roweret epaieced in Knit of Cri use and cho exeiexedin Eviorment end Geoepticnomatin stem (5) Mr. A.T.K.M. Ismail ‘Me. Sk Hasin FA, ith Independent Died of fogem Inox ampany Wd Hess,» pesnal acount is Fellow Menber he Instive of Goteed Acouten of Beogllesh xd MLC, in Acouig. A prs beth Dept Meraging inc & Campon Sect of Uo Fiore ‘and lvestments Limited, one of the top Nen-Benking Financial Insitutions (UBF in Borges He sted his cen Uta iano inthe er 200303 GO 8 Conpony Seca. Pir Wis seve he wos heed of Acauts end Fine of Swot Lelopent ined, 0 wll ep rel este camory of Banglodesh end clse sewed in Ramen Rahmen Hug, Chartered Accountants (WPING representative Chatered Accuntonts fir in Banglades). ‘Me. Hosoi, a billet student sowd fist (rt son) in the yer 1968 in commerce gop fo store Cotrmet Coleg nde ose Edt Boa He has vos! experince in Secretarial Pracice, Accounting, Finarce ond Company ‘bis. Gsdes is igh elon ctcinnent A san is wl ined in _vetious fils induding Acoaning, Adina, To & VAI, Comgory’s Act ced othe: tld ules & Rogultos cra by nite of Charred Acoma of Bangledesh (CA), Bangledsh Bon, our cf Ivesinnt ond Bangedsh lensing en iene Congris scion (BUF) ee 3) Mr. Md. Jakir Hossain, FCA EASTERN SURANGE, ee fanaaOur ris i make Company on ide! one & create valve fr ‘ur lens ond stoletoKes. e2y 5 EASTERN WSURANCE C0. 1D(ur misien isto become mest cig Insxnce Company wih dedi ¢yramism innovation ond cent need based comprehensive sri, EASTERN MsURENCE 60.1,eo: OBJECTIVESice CORE VALUES © Tionspotency © Homony Integity Respect © Professionalism © ‘Result oriented © Teamwork © Efficient sence © Courtesy © Continvovs self improvement Gonnitment Business Ei Quality ‘Stondord quality Fairness E23) EASTERN sutaNCE co,UR ORE STRENGTHS 9 C Highly experienced Board of Direcns ‘Strong capital bose Srong liquidity postion Efetive internal contol Profesional ond highly exprened Management Good corporote culture igh tom spit Satisfod comer bose Good isk Monogoment es) we] (> EASTEnN nsuEMNEE—C —— ] — 7. “nA To provide quality ond efficient service in every osped of its business. To be innovative in the development of re insuanc pode, Gonnitment To build strong relationship with the customers. To increase satisfied employee bose. ‘Stoff raining and coreer development. Ensure fair retun for out shareholders. Resulevinted ‘Teom work ‘ointointensparencyin ol aspects.STRATEGIC OBJECTIVES The interest of the shareholders ond customers is supreme. We sholl endzovor our utmost effort to render the best possible services to our clients and shall give them no couse for compliant ‘ebtng to lim setlement or oherwise tis becouse the reinsurance provides underwriting apocity othe Compan, ‘The overall objecives of Management are to develop shoreholders equity, improve customer sofsfoction ond rolaton and mofivoto employes os for os pomisible by tho financial resources oalbl othe Company so thet they sll be duly eccmpensed. Observance of business ethics ond Lost generation ore only tw sides ofthe samme coin, One is complementary to the other, y ‘observing business ethics to the utmost extent possible, we hope to generate due margin of profit so as to poy dividend to the shoreholders after having ppoid to the public exchequer and fo build up free reserves for purpose of enhancing the {inancial stiength of out Company. On priority besis, following objectives ore practised by us: © To moke affordable insaronce accessible to all © To bethe most innovative in product development. © To establish of good Corporte Govemanco. © To improve internal process to increase effencs © To improve Organizational Stucure. © To improve Information Technology. © To develop overall services end maximize morket shar. © To improve Narkatng ond Advising stotgy. © To employ more profesionalsto ochre sucess in the business operation. © To ceate ond expanse brond image. © To haveol products meet standard of excellence guidelines. © To improve france analy, cents ond oud capably, © To implomont change faster. © To continual eam and cdoptcurent best proces, © To trnsier knowledge from leading edge clients. © To clgnincenves ord stots reward wth peformanc. © To beresporsitle, rustworthy low. cbiing in ll hat we do. © To teloadorin serving tho intores of cu: Community ard Coun. © To mest ond exced stakeholders exectotons, ‘© To manage the offirs through insitutional leadership. © To bo< espace, culturl end educated Company wih o song market poston. © To cchieve zt0defecsin evry thing we do © To do good busnoss with good dens and of he highest ntogity. STERN INSURANCE ti orPRODUCTS AND SERVICES CORPORATE © Busnes intrapion © Industrial All Risk Insurance © Progeny Al isk insurance © Ekearonic Equipment Insurance © Erection All Risks © Comprehensive General Lotility © Product & Public Licbilty Insurance Engineeiing Insuiance (CAR, 00S, BPV, ID, 6!) ‘Hotel Owner's All Risks © Event Cover © Power Plant Operational Fockoge Insurance FINANCIAL © Cashin Sofe © shin Tenst Cosh on Counter Burglary © Fieliy Suootee CONVENTIONAL © Fire Insurance © Havin Cargo Insurance © Nat Hl Isvonce © oo Ione «) Conmarial t)Pvete Speci Type Vehice © viction irsrone © Personal cient Insurance © Wovknen’sConpenstion © Health Insurance © Overseas Medicloim InsuranceIMPORTANT EVENTS OF THE COMPANY 10.07.1985 07.06.1986 15.07.1986, 03.11.1988. 31.10.1993 18.03.1994. 12.11.1996 12.06.2011 + Pamission to form Insurance Company + Certificate of Incorporation + Commencement Certificate of Business + Change of name from Eostein Union Insurance. Co. ltd. to Eastern Insurance Co. Lid. : PoblicIssue + ising wih DSE + Listing with GE + Rights Shares sve (@ EASTERN JWsuRANCE co, LTO, ON anCREDIT RATING RATING : “AAt+” The Company has been rated as grade-Aat (Pronounced as Double “AMY ) by the Government approved Credit Rating Agency (ACRSL) Date of Rating 05, December 2018 Rating Validity : (One) Yeor RATING SUMMERY ‘ong-Term : “Aat? Short-Term : “$7.2” RATINGS EXPLANATION : insane cepony i ae, a i company oty 00 smal degre lsidel eed tales stiet tov tsk it Te ik casey ay ym i tiny Ja ae sony od este by tng con fas. ik ysPROFILE OF THE COMPANY INTRODUCTION HISTORICAL BACKGROUND VISION MISSION ND Al OBJECTIVE Ecstrn InsuonceCongony ison ofthe pore in gener insure business operating nthe pica seca of Borgadesh, The Compony lated is operation nthe ye: 1986, The Authoized Coit ofthe Crmpany i k.10000,00,000.00 ard Pid Up Coil is Tk43,11,01440.00. It so Public Limited Campay an ited wit DSE & CSE in he ye: 1994 end 1996 respectively The Compoy hs netwark af 25 Branches lover the Court coving allimgotont business ets ofthe Cunt. ‘After Liberation of Bangladesh in 1971 Bark ond Insurance Componies were notionalized along with other sectors like Jute ond Textile fo give a sacalstc flavors to the economy of the newly emerged notion which wos eleciorol pledge of the then ruling Government. But with the chonged global economic situation, Bonglodesh Government decided to follow an open market economy right from the early eighties. Until 1986 bath life ond generl insurance business were cared out in the Country by two stote ovned Coporetions ton Bimo Crperaton and Sacheran Bima Crporaton respectively. The begining of 1986 winesed emergence of o few life ond Goreral Insurence Campenies unde Prvote Sector oer posing of ‘Ingurance Amendment Act 1983 in 3rd Perioment of the County. Eastern Insurance Co. Lid. is one of the first 10 Public Lid. Componies, storted operation in the yeor 1986 nda the iene ofthe Contoller of Insurance The Company is cuherzd fo trensoct ol csssof general insurance busines. Sine its emergence in. 1986, the Company hes eared wie reputotion in the market {ori set adherence to business norms & ethics of insumnce, personalized customer sence ond prompt nd speedy disposal of cims. Now the nome isl ccs vale to ts custome. The experience othered uring the lost 33 yeors of is operation ond reputation eorned gives © new dimension to its service rendered 10 its customer and i is now truly “a Symbol of Comprehensive Security" a slogon introduced by the Compony tight ct the Hime ofits tinh, ‘The Sporsors of the Company represents different business sectors of the Country who felt the necessity of specialized sence in the Rik Mavagenen hs om buses ext os wel sth pes inte ‘business community. They olso fel thet the notionalized insurance sector would not be able to cater the te ier pn me ny i, Nn de ome oe asfollowsPROFILE OF THE COMPANY VISION |. Vstonistomotette Company on dea! ene & cent vole fr our cen nd storetlds. MISSION OBJECTIVES BOARD OF DIRECTORS THE MANAGEMENT a) Mision sto became most caring Insurone Company wih dedication dynamism, innovation end dnt need bsed conpehensie svi © Tomoximize our sence forthe bereft of clients. © Tocieote confidence and trust omongst the Insured, © Toinciease value added services To moxinize the profit of he Comony. © To strive for eating o heelthier environment for all our stokeholders. Since ts ith the Company stil edheres tits gol and mono ond eared «distinctive deny inthe insane arena of he County os on erent ‘olover of les end equations ond eis of insurance The Company clways stands by its commitment of quoty service, It believes thot satisfaction ofthe clients is the losing ose which volves oboe al. The Beatd of Lites ofthe Compeny compris of 20 (Iweny)Diecos including the Chairman and 2 (two) Independent Directors. The Directors of the Company represent diferent business groups of the Country hoving nome ond fame in the whole business oreno of the Country. They are most su people in thei respective fil of businss ond industry nd enjoy repuotion among the whole business community of the Country. The Company hos o very sat ond efiient Monegement team fo un the ofais of the Company. Members ofthe team hove long experience ond exerts in the relent fs of insurance ond enjoy reputation in the wkole markt of insurance,PROFILE | OF THE COMPANY RE-INSURANCE ARRANGEMENT BUSINESS DIVERSIFICATION CREDIT RATING The Compory operates its business through a network 25 Branches allover the County. These bronches con directly underwrite oll closses of business under guidance ond supenision of Head Office. In addition there is 0 special booth ot Head Office to meet any emergency requirement of any client orto toke cae of ‘ony sprilo exceptional sk coverege os may regi by ony len. The business operation of the branches are monitored ond controlled by Head Ofice though Underwriting Degortment, While claims ore dietly handled by Clans Department of Head Office os o centalied process and practiced all over the world, ‘The Compary is outhovized to tronsact all classes of Non life insurance business with un-restriced limits having 0 very wide range of reinsurance coverage. Cureny the Company provides vara sk covenge ‘avery compotitv pomiam ats within tke taf provision in foro, The Compory has on extensive Re-Insrence Testy crangement with SBC fr ell cases of busines. Re-Insuonce provide tchriclassitomce for osuing iss, developing rtes ord fixing up fxms ord conditions in cas of non-terifbusinss. Qu Goverment has permite al Non if Insunece Companies for making teinsuonce cession wit Foreign Reisues upto ther 50% porto. The Compony is now paleo undert oy high vlued risk with he ossistonceof ur lool end oversens R-Insurance The Company hs ols ives its kuxinss wt view t ensue pertcpton nce fil of ational economy bss insurance busines. It hes bec o ment ofChiogng Stok Exchange inthe yeu 1996 ond os pr BSECs tiation bas famed a Subsidiary Company namely EC Secuitis Ud to dal shot trading rebated busines. The Company hes invested a sustniolemount ofits fd in end ord shore markt. Its 0 «spenso:sorhelder of Notnel Housing Fnenc and Investment i. It hes 0 plo faa bath ang nd shar tem investment in er socers of busines end industy. The Compony hos been rted os rade-AA+ (pronounced os Double “AA-+") bythe Goremment approved CCiedit Rating Agency (ACRSL) based cn its premium collection, core services, financial srength ond ‘expeditious settlement of claims,PROFILE OF THE TOP MANAGEMENT Mr. Mohammad Haroon Patwary Neon MBA on, ‘Managing Diecor& CEO ‘Mx, Mchamiad Hercon Potwary, Chief Esccuve Oficer, Ease Insronce Company Limited, got his Gredvtion degree from Government Colege of Commerce, Cottam. He obtained his Mosta’s Degree in Nanogemént fom Universty of Dhoto, Potwary tos been waking inthe Iswonc indy in vrs copaies, ranging fom management inet Chie Execute Oi {CO}, over the post 34 years. He sal con hese seo ih ind se Nag ni dearest, ceinsuone, occuts, barches operons ek. Befrejoning United Insirance, Mk, Poiwory waked in BRAC os o Pog igri ft ayn, In that ime he bs road etonsvely to wl ars of Bangladah and os boon immensoly acquited wth ‘he operon of Non-Goverment Ogoistons in Bonglafesh Following his tenure ot United Insurance Co, Ut. he jcined in Agron Insurance Co, Lt. in 2000 os Srior Vice resident. In Agrni Insuane, efter o number of prometions, he took hs charge os Deputy Menagng Dire followed by two yeas os Acting Manoging Diredor. In 2008, he joined Eastern Insurance Co. Li tional Managing Director and in 2010 got promoted 10 his cent lage os Chie Executive Oficer ofthe Company. ‘During his work os Chief Executive Officer of Eester Insurance Co, Mr. Fatwary clso obtoined his MMoster’s in Business Administration (BN) in Human Resource Nonogement (HRN), He s cso cent end inthe Creed Isuene Insti, UK ond hos clready ken to exams. Ms Batary isda Naneging Dredr of IC Securities Limited ond Decer ot National Lif Insurance bo. eee Rotarian ond is Post i Rotor hepa ie Potory hes traveled oll over the r ‘and hos ttrded vas causes, senor, worshos both local ond inkraionaly,qunng knowledge, epee ond expe in feocnn dsr Bolin fens ben goat He also involves himself in various social activities through: + Life Member- Feri Samiti, Dhaka * Permanent Member- Feni Youth Summit, Dhaka * Permenent Member-Gulshan Youth Club, Dhaka * Permonent Member- Boridhara Cosmopoliton Cub, Dhoks * Corporate Member- Uttorc Club Utd, Dhoks © ‘Member-Rolary Cub of Eskcton, Dhaka * Life Nember- Insurance Eectve Club, Ohoka * Member-Rowshanabad Bohumuthi Shomoboy Soi Utd, Feri. (@ ESTERN nsuRANcE cl A on ay menPROFILE OF THE TOP MANAGEMENT As. Hokommed Seln joined in Easter Insurence Cempy Limited on Nay, 2008 os Aditonol Nanoging Direc. Blo jining bo worked with Jaot Irsurone Compony LN, Federal Insurance Conny id, Poo Insurance Conpony id, end Soar Bango lnsarence Conpry lid, Ho ebioined is Noster with Hones in Socal Science fom Univesity of hitegog. Ho hes arund 32 years of exgtoncs in tho Insurance seco. Ho is involved wih voius sodal dives ond Institutions. Mr. Mohammed Salim Adionl Morag Deer A, Mosiuzoman ga is Mase wth Hors in Police Sdece fom hcka Univsiy. Thee, he joined in BCS (Admia) Code, Both-1985. He Sened os Ast. Commision, Upaila Nagistate, ‘UNO, CEO ef Zilo Parshod, het Revue Officer of Dhoko (Grate) Cy Copraion, He ose worked os Deputy Secetay, Joint Secetoy and Adtitonel Secetar in diferent Minsties ord Disios. Mer succsstul completion of more thon 30 yeas in both Fld Administration ond in the Minis, be ttied fom Gov. Senice and recenycine in Easter nsurence Company os Senior Constant Mr. Moniruzzaman Seite Corsten At. Nd. Shanl Ann the Conpary Secon of Este Insane (o.L.ddfis Haste of Sl Scene fom Oheka Usiveiy. He had been anerded igo in Engl longuage ond Junior couse in Arabic languoge tom the liu of Modem Longuage unde tke same Univesty. Belo rng in the Cony, bested in Got. Ofc lie Pime Miist's Ofc, Miniy of Hom Ais, Minis of frig fis, Mins of Plc Aint, Niisy ef Youth & Sports etc in different copactizs at home ond abcoad, although he slated bis cea Banking sec isl. A. Ain soo ave in varios sical ects. He i he Pesdent of Ging Body Failboia GFU Schon! & Callge, Vee Pesient & lie Her f Lelenipu: lea Sniy,Dhoe, Generel Setay cf Retied Oca” Wore Associoion of NI (ROWAN) ond Reshbigan Shttho Forum, Dick Unies, He she fe Member of Dhaka Urey it Aun Asotin ond Khhi Cub, Chotogam. Hed Siamsd aos on ( EASTENN MsuRANEE CPROFILE OF THE TOP MANAGEMENT AM AK, Yakub Sattar Chonhury ined inthe Eat Isuonce Cempony Liited on October 2010. Bef jering he waked with Agoni Insurance Company Ud, Sttegic Consuting Group (SC), Hope Agro Industies li, Sytace Ld, Bogra Metl Ergineing Ertepeneus Group (BMEES), Boga Meo Eterprss Devopment Project (BEDE), Notional Asciction of Small & Cottage Industry of Bangladesh (NASB), Rsouce faploration for local Employment And Sociol Enkoncomont (RELEASE) 0 Locl NGO. He was *Dop'y Assan Died of Diectrte Garr of Foxes Inligace (DCR) } unde the Minty of Defense, Ho blaine hs Master Degioe with Hsin aS ond Bahl of Lw Deg fom Unvosiy af Dhaka. He ha boon working in the lsuenc seco fr tho last Mr. A.K.M. Yakub Sattar Chowdhury 130 Diy unin Did ‘hs, Md. Iqbal Matmud is the Deputy Menaging Divedor of Eastem ‘Insurance Company Limited. He obioined his Bachelor degie fom o reputed ‘University. He stated his Insurance coreer wih Exslland Insurance Company Ud, Thereater he joined in Easiem Insurance Company Ud, ond bas been sewing since 1993. Hei very muck bord working, sincere ond dciated rectie, Due 1 ths reason, he wos promoted to the rank of diferent higher grades gradual ond finaly to he conkof Depty Nonoging Dieser. He bas ound 29 years of experience the Insurance sect, ‘nhl hus been exgoed vith varius sol velo ec At pee, he's the Gear Seca of Paka il Somiy, Dok, Vc President af Mago Up Kalyan Sait, Chola ond the Saclay ef Posto (OvmasAsiciton, Hei on otve member oFLion Clb Mr. Md. Iqbal Mahmud Deny Hog Deo ‘Nt Md, Fay Ali isthe Deputy Monoging Dicer of Easter Insurance Compony Linited. He hos been serving inthe Compeny sinc 1988. Before ning in EC. be worked wih BAVS lnc. He bs, cxound 31 yous of experienc inthe Insurance seco. He chained his ‘oster Degree fom University of Dhaka, Due to his efciecy inthe in, tewns piomcted tothe rank o fret higher grade ond filly tothe nk of Deputy oneging Direc. Mr. Md. Fozley Ali Set oi Bie = rn AS UMSPROFILE OF THE TOP MANAGEMENT ‘Ne Tushar Kont Soho i the Depuy Managing Dietor of Eostem Irsuronce Company Limited, He got his graduation degize fom a reputed University. He hos oround 30 years of experience in the Insurance sector. He has been serving inthe Compony since 1989. His dedicction, hord working and sincerity helped him to get himself promoted to the rank of Deputy Managing Director. He has been tendeiing his excellent services to the clients and therefore obtained proper appreciation from the Monagement, Ie, Santosh Komor Hd joined inthe Eastern Isuranco Conary Lined on Novernber 2016, Bolas joining he worked with Agar Instone Cempeny Ud He hos around 23 yer expen inthe Insurance sector. He obtained his Master with Honors from University of Chittagong, He oko abtoned MBA ond LLB degio fom reputed Univesity, He is engaged with diferent secial activities ond cucently Ufo Member of Chittagong Liens Fourdetins, Bongadesh Red Cresent, Chitogong Acedemy, Chittegong Mettopoiten Club, Dintetc Hospital et. Mr. Tushar Kanti Soho Depa Meneging Deer Mr. Santosh Kumar Nandi Deputy Monoping DecorHt] tien] g ij peel rt | -ftened| ii— i = jitiene] th oa; me seo] i i ole | 1+ ji Be] gE si z La ! £z [Ee t+ Hise bg g 8 i Bl ie |, 22 3] pal GP ; Zo 2 2 Ge 2 jon Wb ZO Og E i 4 Le a8 E23) EASTERN JNSUEANCE Ca,mi PERFORMANCE AT A GLANCE CCTM COUITTUNLIIL CCONLIC Indicate | Yor Gross Premium Income \e2y) > Eastenn surance co 0.eae COL b Net eS Rereaiealeerel 1 2012 18.44 2013 19.36 2014 20.56 2015 20.17 2) a 20.98 m1 "2 83) m4 mS 86 87 2017 21.06 CVS Tueunee asec OLN MNCL 8 2349 amz_|| zon || aoe || 2015 || 2016 || 2017 || 208 1 nvesmert 8 Shae Tadiagincome NSM ia Cite ccMLe se mot ete Tox ey a sageTLCS eM aL SSCL INCOME ITS SHARING Tk (ln core) % 1 Premium Income 46.08 75% 2 Commission on Re-Insurance Ceded 3.28 5% 3. Interest, Dividend & Others 1214 20% = Fremiumincere Commision onResranceCeded Interest Olden BOters Expenditure & Its Sharing EXPENDITURE & ITS SHARING Tk(Incore) % as 1 NerChim 336% 2 Relnsuance Cled 058 31% 3 Monagemen’ Exonses® Agency (onmision 13722194 4 Degen & Others 088 1% 5, Addon n Unemied isk Reseve 0% = 4 Net Pot Belo Tor 1008 33% ost Lose sutchim ebewmerCeied MMnagenenitiente &SDxpesin Oto AddsenmUneged St Pelt ao Toe ‘ewe Conan Ret fonne Neer zon || 20 || 204 || 2015 || 2016 || 2017 |) 208 NetcanCTT RAS TRU LSM OUT | y mia} | 2013) | ams) | ais) | moe) | ao) | ams 1» Shore Copital = Shoctollrs’ uty SMU San cseyN Ed ‘SHAREHOLDING STRUCTURE Tk (In ciore) 1 Sponsor Shareholders 19 5% 2 Institutional Corporate 198 28% 3 Individual/General Public 919 1% ‘Sponsor Sharchldrs _sisttuonlCmprte sw Indvidvo Genel Public | m2) ams | 2m || ams) ame || m7 | 018 Rosen & FundOS m2) mis | ma | zis | me || 7 | 208 Titel Ass Investment in Shares & Bond, FDR, STD Accounts Z 2 5 ie) is) 3 5 3} m2 2013 ma) | 2s ms m7) te = BOND, FDR& STD Accurts Shores, ibe & others eld Aste ASN eM Nee UNS ITS Keser Uy Indicate tems ‘Amount 1 | Banks fonctions 281580719 2 | tswonee 2895151 3 | Mutua Fonds ssa 4 | Phomaceutcls & Ghenie 4379441 S| Obes 12813869 Tad TOS 1 Bank 8 fonda * Insane = fatal fords = Phomocetials = Obes Insuons Reni! EASTERN wsunaNCe Co, LTD. Teg aa(6unoy) Jesauay-Aeqas2a¢ a “BLOZ saguianagh , Tg jun quauina Survuias aqvorfiuad sty 1, ojasays Burmpyaddy sabajoud puv szyB aya yo 07 paniua st pun Vi saluedwios payst] Ajaiqnd Jo uoneIsossy ysape|sueg fo saquayy, Couyucw si CALLIWIT ANVUWOO JONVANSNI NUALSVa goyr Gfinsad 07 S2 sty, a}eIGIVIID pamsuayy ‘$102 ‘¥e aun : ans} fo ang Te/s10z-W) °°N four SAINWdIAIOD G3LSN AIDNNd 4O NOLLVIJOSSW HSJGVIONVE|Le)|SHARE HOLDERS' VIEW 32nd ANNUAL GENERAL MEETING ey QS esten suum ov.) EASTERN INSURANCE CO. LTD.VIEW OF BIMA MELA-2018 E23 ; ‘\astene sora co.u.VIEW OF EMERGING ASIA INSURANCE AWARDS Mee Pesce A Managing Director &CEO of Eastern Insurance Co. Ltd. isrecelving Caer yen emerging. a aos 8.2010 emerging gC ysis: Bangtox Pence iat Iiateucs tie twee one Crash ancien oral "West se} held in Bangkok, Thailand recently. e2y > EASTERN INSURANCE C0, LTD.CHAIRMAN'S MESSAGEBismillahir Rahmanir Rahim, Dear Shareholders, Assalamu Alaikum, Irs. 0 gveot privilege ond pleasure onthe pat of me to meet you cll inthe 33rd Annual General Meeting of the Company. take the opportunity 1 oferheatiest welcome to al of you here attending this meeting an my own behalf os well os on behalf ofthe Board of Directors ofthe Company. Before going to the subiec, | woud like to express my deep condolence to those members ofthe Company who have departed irom us during the lst yen. Moy Ah gront them etrnol peace. In spite of huge competition in the Insurance Indust, your Comony could able to maintain its growth duing the patod ‘under report in relation to the previous year. Your Company has earned gross premium of Tk. 46.08 ciore agcinst Tk. 41.89 are of the previous yeor wich ian increased of 10%. The Company cso cogitered growth in is underwting poi end nt prot elso. The Bonid has token certain stps to incease Compony‘s gros premium income ond aso the retention. this acon plan can te implemented there wil be intense of premium aswell s profi. The Company hos a Subsidiary Compony in the name of EIC Secu Lid. to cary out stare trading busines os lock broker nd stock dealer. This Compony is row operating its business under Citiagong Stock Exchange Li. The financial statement cd brit of business operations of his Company is clso included wit his Annual Report Tho Boatd of Diteors recommended 20% Cash Dividend forthe your 2018 subject to tho approve of Shareholders in the ‘AGM, This decoration has been announced on the bass of assessing Compary’s Revenue, Cash flows, Financial condition, Gopital requirement, Curent yer’ pofitobilty,Libilty postion, Rese, Dividend consistency, Future expansion plons ec You wil olso be appecited to know that Easter Insurance has been cated “AA-+” by Agus Credit Rong Sanices Limited (ACRSI) based on is financial stotements ended December 31, 2017 which indicoted high claims poying ailty, good financial performance and sound solvency poston ofthe Company. We ere very much confident thatthe Company i ised to acept callanges ofthe fture capitalize the opportunites asing nd maintain is momentuns in growth of busines ond profitbiliy in the yeu to come. We are mast obliged ond eppreciatve ofthe continued support ond parenage received fm eur darts ond shorholders end would lock fervard to contiavaion ofthe same. (Ou object is to prove ou efficiency ond credibity to the cients by extending sincere ond meritorious services fo them. Ih is ‘our moto to alwoys extend edvice on prudent undermting in relation to insurance requitemen's of the client and moke prompt setlement ofthe genuine dims. Inthe en, | would like to ofer ny deep appreciation ond sincere thanks to our valued cent, esteemed shareholders, my collegues in the Boord ard the employes of the Company or het continuous supprt and sincere co-operation. Wit best regs, tr (Mujibur Rahman) Goirmon Sjeasrenn msunanceMESSAGE FROM THE CEOBismillahir Rohmanir Rehim, Dear Shoreholders & Stakeholders, Assalamy Alaikum, {tis my immense pleasure to give you 0 short review on our Company's octivities and its performance in 2018. Eastern Insurance Company could complete another successful year in terms of its quality business, product innovation & reinforcement. So | would like to convey thanks and grtitudes to cll honorable stakeholders, customers, business pariners ‘ond obove oll employees for their oll out support end trust to the Compony. ‘You wil be happy 10 know thot in 2018 underwriting profit achieved by the Company was Tk. 8.77 crore os agoinst Tk.7.57 coe in 2017. Pe-tox profit in 2018 incensed to Tk. 20.03 cow fom Tk. 19.10 cote in 2017. The undenwating result ‘long with income from investment even ia this tight insurance ond investment merket has exhibited postive growth. Total reserve has gone up to Tk. 130.70 crore in 2018 as against Tk. 128.98 ciore in 2017. The Company cotinues to detlop 0 well bolonced business potalio which isnot only deperdent on any patclar ype of business cient The Company is working to introduce new products and series. (urothr gol of doing business the sped setlement fhe dis Webliee thet nse must be seen os eign he busines ofindamnfhngpolichalers whon mifortur ties Isurs havo to pay valid cms quiche sation of the clients. We lieve thot adequate sence levels, goed cerorte governance prctces ord compnce wit regulations can have a significant impac on he company’s sustainably. We always ty eeu all oeainel equations which oe introduced by the Insurance Development ond Regulator Authority (IDRA) of Bangladesh You wil abo be clad to krow het our Company has baen rate ot “AA+by Ags Cre Roting Saves Ld (\CRSL) based ‘nis finan sateen ended December, 2017. This ting as been osigred in conierton of is god fundarentels such os good financial & technical performance, sound solvency postin, re-isurance arangements wit local and foign ‘e-insurers, sound internal control and experienced top Nianagernent etc. ‘As ovale 2018 wos challenging yer fr the economy due to unhealthy competition nthe isuronceindusty, unbelhy trend in domestic capital mate, several exchange rte fuctation of fasign currency, inflation rte, ffc of manitering pelicy, continuous shetage of eneigy supply et. Despite he above adverse stuatn in the ecnomy ord impostion of some effective mecsutes by Insurance Development ond Regulatory Authority ((DRA) inthe insuance industry the ene insurance sector in the county hos moved ahd. | wih oetond my thanks oho loyal, dicated ord commited st ofthe Ester fay who cen hee gore abo ond beyond ‘thecal of uty to suppo the goth che company. The waking enicnment tot exists cst hascntibuted fo stengtten the bens beweeneilayees end lok frvard ro continued commitment fom al tf tewars our sucessin 2019, | would like to express cur appreciation to the Regulator for ther uniting efforts to improve the stondards ofthe industry. | onde tis Root wih on exresien of deep oppo o aw Caiman end Bor of Dic for he coiued guidance rendered to ma to steer Eastern Insurance Compony towards greater levels of success. Thanking you, my (Mohammad Haroon Patwary) Chief Executive Ofcer ‘EASTERN suaaNCESHAREHOLDERS’ AND INVESTORS’ INFORMATION Notice of the Annual General Meeting Finonciol Colendor..... Useful Information forthe Shareholders’Bebe Saptra copie fee EASTERN INSURANCE CO. LTD. (The Sypntol of Comprehensive Security| I Regltered Offce: 4, Dusha Commercial Aco, [24 loot), Dhoko- 1000. Te) haste) Ar RES TU aN a eV Aaa Notice fs heteby given tho the 33° ANNUAL GENERAL MEETING OF EASTERN INSURANCE COMPANY LTD. wil be held on ‘uly 30, 2019, Tuesdey ot 11:00 am ot Spca Convention Cate Ld, Houst-1, Rood 7, Goshen 1, Dhla-212 to rane the flloing business |. Torecive, consid ond adopt he Deters Report ond the Audited Accuts ofthe Conpory ard Autos Repo tern fr the yor ended 31 December 2018. To dere vied fer the yer 2018 Toelect Dreces spat ticles of Ascii of he Company. .Tooppoe Appointment of Independent edo. Toopeit Audits fe the eo 2019 ond fixup ther emunerton Toopprint onglione hut (spt Crprte Govan Cade 2018 rhe yeo-2019 ond fixup ha rmurentin By order of the Boord of Directors ‘ate toke sd The 26% Apel, 2019 (Md. Shomsul Amin) Company Secretary The Read Dees ind on Mandy, the 278 Moy, 2019. The Shreoies, who somes wll pga inthe Shoe Rois of the pony (ete & Deprsta) atthe dose ef tsnssot he ec dt lb eigble ts ten te meating ord dide A mente stile oat on ote othe meting ay eprint ante psn shies pow fo tend end wl nies teh. The Pr Frm daly sped mest be dpsed te Conpan/s Regd ofc rt te than 4 (oy gh) hosel the ime sched forthe mein. Erity tothe Amual Genera Metin is seed ony fo the Shr rhe poy. No Guests end Chien hl be ollowed etna ihe meng, sper BSECsnotfcaten Ne. SEC/CMRRCD,2009193154 doted 24h Ook, 2013 "No Boneitincsh or kind thr thon in the form of cash vendor stork ivdend shall be poi othe holler of ecu scutes”FINANCIAL CALENDAR Announcement of 2012 frl result Record Date ‘Annual Report 2012 dispached 77th Annwo General Neetng Cosh dividend 2072 dispoiched ‘Announcement of 2013 final result Record Date ‘Annual Report 2013 dispatched 28th Annuol General Meeting Cosh dividend 2013 dispatched Annourcerent of 2014 fal sult Resor Dote Annual Report 2014 dspotched 19h Annual Genel Nesting Cash dividend 2014 dispatched ‘Announcement of 2015 final result Record Date “Annual Report 2015 dispatched 30th Annuol General Meeting Cosh dividend 2015 dispatched ‘Announcement of 2016 final result tecad Date ‘Annual Report 2016 dispaiched 41st Annual Genera ting Cash dividend 2016 dispatched Announcemert of 2017 fra rest Reso Dote Annual Repo 2017 spiced 32nd Panel Generel Heating Cash dividend 2017 dispatched Announcement of 2018 final result Record Date 29h April, 2013 ‘15th May, 2013 234 June, 2013, Tihduly, 2013 25th July, 2013 ‘Bh April, 2014 15th May, 2014 BihJune 2014 ‘24th June 2014 20th July 2014 29th April, 2015 19th May, 2015 ‘th July 2015 Died July 2015 ‘nd August 2015 ‘T7th Apel 2016 ‘19th May, 2016 29h June 2016 20th July, 2016 ‘Toth August, 2016 ‘Th Apel 2017 Tih June 2017 ‘2nd July 2017 ‘25th July, 2017 2 huge, 2017 ‘25th Apel 2018 ‘29th Noy 2018 ‘th July 2018 25th July 2018 19th Augus 2018 28h Apl 2019 TM May 2019USEFUL INFORMATION FOR THE SHAREHOLDERS THE HISTORY OF RAISING OF SHARE CAPITAL OF EASTERN INSURANCE COMPANY LIMITED (ne ofthe pie objeines of Ensim Insurance Cempeny Limited is 0 provide consistently cod rou ots storodes. Below cre the diidend end ‘capital rising bstoy. From the hstry it may be observed thet company hos been mairtoinng o stable and atractve dividend policy in ine withthe sound underurdng ard investment resus. The Company hos obo adhered too poly of tinely preportion os Accounts ond hckdng of AGH, 0s ‘may e noted fom the Financ! clendr below: 1986 As Per MOA. AOA 30,000,000, 30,000,000 1994 Intl pubic offerings 30,000,000 60,000,000 1004 25% Boru shores 15,000,000 75,000,000 2005 20% Boous shores 15,000,000 90,00,000, 2006 20% Boru shares 18,000,000 108,000,000 2007 20% Bosus shies ,800000 129,400,000, 1008 20% Bonus shares 25,920,000 155,520,000, 109 20% Bosus shares 31,104,000, 186,624,000 2010 Rigs shores(:1) 186,524,000, 373,248,000 2010 10% Boous & 5Y%6 Cost 37,324,800 40,572,800 2011 5% Bons & 10% Cask 2,052,864 20,528,640 431,101,440 1012 1896 Cosh ddend : : 2013 20% Cosh dnidend 1014 209% Cosh énidend 2015 20% Cosh didend 2016 20% Cosh dnidend 1017 200% Cash dnidend 2018 20% Cosh dnidend (Propesed)FINANCIAL HIGHLIGHTS. ‘The Directors’ Report. Board Comin Pattern of Shareholdings... a Decoration from CEO ond CFO on Financ Statements Cettiote on complione of condition o C6. Complionc report on BSEC Notation... Report on Corporate Governance. Report on Going Concerns & Rsk Management... Report on CSR and ofhernecessry ifort Report on Information Tethooogy.. HRM for ll Manager. Disclosure Policy of ECL. Volue Added Stteme Economic Volue Added Stotement ‘Market Value Added Stterent, Disclosure Percining to Solvency Mat gin. omen ‘Acountng Ratios Pertoining o Insurance Sector. Diredors Certo x Report of the Audit Committee...REPORT OF THE BOARD OF DIRECTORS For the year ended 31st December 2018 Bismillahir Rahmanir Rahim, Dear Shareholder Ladies and Gentlemen, Assalamu Alaikum, On behalf ofthe Board of Directors of Eastern Insuance Company Limited and on my oun behalf | om delighted to welcome you all inthis 33rd Annucl Generel Meeting oF your beloved Compony and thankyou for moking it convient to attend the same. ‘The adits of Eostem Insurance Comany Limited forthe year 2018 hos been reviewed by the Bood of Directors and | take this opportunity to present before this august house the thirty third Directors’ Roport together with Audited Accounts of the company for he yeor ended 31st December 2018 for your kind review and approve {core reviewing the ovrllpafrnance of the Company in 2018, we may review the Globl and Bongldesh economy alengvth the prevailing situation of Insurance Indust, prude non-fosogmert of this sector for out kind opprasl WORLD ECONOMY Te Globo economic growth hes been projced sat detining in 2019 in compaison to tet of 2018 due tothe sghir firancal condtion and geogopticaltesion repoted by the IME, Werld Bank and ADB. Emerging economies and developing counties waren an urfovoreble condition fo retain their centon rcuth dung recent ine. appropiate and inadequate policy responses by some areas of the investors have affected the industy heovly in the globol and loco industry. Asion Development Bonk hos forecested 6.0% growth in 2018 and 5.8% in 2019 fr develogng Asion Couis wih o projected growth rte of 7.0% ond 7.2%. Bangladesh falls in the cotegory of one of the counties with high growth rote in 2018 and 2019. The gloelinsuonce indy wil hopfully grow more stonly than the global economy in 2019 followed by the year 2018 os is revcled Annual promium growth hos been forecasted by 0 Munich-bosed renowned Re-Insurer to 5.3% wherens global GOP is expected to grow by 43%. Enaning courte ue the pinay gon es Spcaly ine eon heath sunset ‘elatvely strong growth rates in high-volume industalzed counties are also contbutng to his postive development. However, sine insurance penaraton (premium in % of GDP) teed in China is carenty seen hig, the stiong growth aes are likly to level off over the next few yers,wbich i why we cre forecasting recl growth between 5% and 6% from 2025 onwards. In the ther emerging mark's of Aso, os well os in many Afton coniis, we are nevertheless expecting the coch-up process to coninu fr quite sometime, given the curenly very low level of development ofthe insurance markets there. However, there wos no data prepared sepoataly for Bangladesh despite it being o high population country. BANGLADESH ECONOMY Bongladosh has actioved o recorded GDP grauth of 7.9% in FY 2018, up from 7.3% in FY 2017. Te growth mainly propeled by industy, ogiculue ond sevice sectors’ cites. As the key sectors of industry, services and egicuture arew by 12.1%, 6.4% and 4.2% respacinely. The daa of Bangladesh Bureau of Statistics (88S) showed tho GOP at cusent market price was BDT 22,504.8ilion for FY 2018 which was 13.9% higher thon tht ofthe preceding yea. STERN INSURANCE Ct eadThis forecest is contradictory to the globel economic cutook which indices thot Bongladesh economy has good forecsting growth comparing globel economic youth ond GOP rend. Improvements in the country’s GOP growth ore the ‘outcome of steady progress in the agriculture sector and food secuily, moderatdy goed grovth in indusy despite the cisis in the power sector, the decline in the inflotion tote 10 single digit, moco-ecoromic stability, the build-up of o comfonble foreign exchange reseve, achieving most of NOG targets and good progress in achieving the SDGs, which the country is diigentlystving 1o meet ahead of the 2030 timeline, In Bongladesh, the Insurance business, after on enly stoge of dislocation, adventure ond experimentotion through lost 41 years has now being etolished oso praising Industry csbuted been the public ond pve sectors, At preset in private sedor there are 45: no surance companies running in Bonglodesh. The growth of Bongladeshi Non-life insurance companies premium income in 2018 was 13.4% (apprx.), which vas 7.52% in 2017, ay INDUSTRY OUTLOOK Lost couple of years, whole Insurance of Bangladesh has been facing tough competion o becouse sizeof Insurance Market is very small. Beside ths, glcbal economic up ond down tend ‘ond need of Government facilities in local investment and Industrial movement also offected the insurance business. The current stote of offaits of general insurance market of Bongladesh is for from sotisfactory, The cut-throat competition amongst the insurance compenies hos stated ogoin. In spite ofthe above barricades, your company hos endeavor its best to consclidate its position and could secure growth becouse of coninuous efforts of Board of Directors and the Monogement, The Gross Premium Income of the Company hos increased to Tk 46.09 core fom 41.89 core of lost year. The Net Profit ofthe Company is Tk. 20.03 crore agains! Tk. 19.10 core of las yor. The Inguronce Regulator, Insurance Development and Regulatory Authority (IDRA) hos token o number serious meosures to tring obout many postive changes including prohibiting credit business, steamining agent commision, protecting taiff Violation etc. The Government and the IDRA should continue their efforts to contribute much in thei respective oreas fr the development of Insurance Industry. The Government will have to toke steps for formulation of policies conductive to the insuronce business. The Regulatory Body will guide Insuronce Companies to execute the policies of the Government ond compliances of Insurance Act, 2010. The Bongladesh Insuronce Associaton (BIA) will hove to co-operate whole hearty in the insurance business smoothly complying withthe rles/egulaions of Insurance Act, 2010 ond the Insurence Comganies will hove to take the responsibilities of running the business effectively and properly. COMPANY'S PERFORMANCE AT A GLANCE LE ‘Gross Premium Ik 460,805,378 418,867,413 Relsuance Penium ceded Tk 225,943,127 208,228,183 Investment Income Ik 90,200,952 84,936,012 ‘Shore Troding Profit Ik 31,165,447 39,423,497 Net Pit Tk 200,348,954 190,964,676 Reserve for Unexpired Risk Tk 95,431,959 86,187,190 Reser for Exceponl losses Tk 326,699,575 230,619,088 Tool Ass Ik 27295026,598, 2.152,306,463, Earning Px Shao (ES) Tk 356 347 Net Ass Vl (NAV) Per Shae Tk 4253 40% eaeRn PR LOTT a ST means i fb us iors:This segment contributed 43% to our total business underwritten in 2018 with giss premium urdewiten of Tk. 19.99 cae (2017: 17.10 «oo. In 2018, the underwriting prof incrosed to Tk, 1.88 core 05 compored to Tk (1.44) core of lost vyeot, Ths is happened due to decoese in net claims expenses. Consoqueily, ls aio (net aim ‘05 % of net premium revenue) clso decreased to 12% against 21% in 2017, Cou Me Naa Lee) ium Tn ao Ree LOTTE} IA) (EASTERN INSURANCE CO. LTD,Gross Premium Mini aC E Rec ae MARINE 5.50 crore INSURANCE BUSINESS This sogment contributed 32% to our total cA busines underwten in 2018 with gross prenim underuitie of Tk 14.53 core (2017: 1440 cre). Loss ratio In 2018, the underwriting profit increased to Tk, 5.50 core os compored to Tk. 4.18 core lost yea, This i hoppened due to decreased in net clims expenses. Consequenly, loss ata (het dim os % of ret prenium revenue) also deceased 10 4% against 10% in 2017.MOTOR INSURANCE BUSINESS Ths segment contibuted 149% fo our toto business undenvitten in 2018 with goss groium urdarsten of Tk, 640 coe (2017: 684 con). In 2018, the underwwiting profit increosed to Tk. 2.23 crore os compared to Tk 2.00 core last yar, this shopped due to decease in ret doins expenses. Consequently, ss ro (oat com os % of net premium revenue) abo decrensedto 32% opist 34% in 2017.MISCELLANEOUS INSURANCE BUSINESS This segment contibvted 11% 10 cur toll business urderriten. in 2018 with gross rei undowiton of Tk. 5.16 cre (2017: 3.54 co1). Im 2018, tho undarting prt decosed to Tk (44) cere os campred to TR(005) cee lost yea. This happened det increase in vet dims expenses. Consaquely, oss reto (rat doin os % of net premium revenue) obo incase to 66% ogcint 44% in 2017. STC UIT TT) a ea Kec Ura) Profit/(Loss) (0.64) crore Loss ratio ez aml] >) EASTERN INSURAN eet aCLAIMS During 2018 the Leora is fas sco for net coins of 1k33,635,563.00 afer sihspent of recoveries made ftom the fesconab. Ensiem Insurance Co, Ltd. Re-Insurer. The Clair ‘ofthe Company is equiped with numbers of experienced hos achieved in creating tan for its: conte ‘ellen! of claim, ™ PROFIT & LOSS ACCOUNT The Compony eared one poi of Tk. 20.03 Core duig th oor under evo os under: Income from Investment ‘Underwting Profit/(Loss) {ess Nanogeret (Not opgicable to ony pica fund or acoun!) Profi befor xan ad appropriation Current yecr’s profit os above. Deed Tox incone/(peses) Un epropiced pai clas your The ove Pai ofthe Company has ben ppropictd os und. Reser for exeponel loses, Provision for Toxation General Reserve Bclnce Cai to Blane Sheet DIVIDEND Considering the operational result of the Company for the year 2018 os reflected in the Balonce Sheet the Board of Directors recommended 210% an ard for the yeor 2018. AUDITORS Trelis WS Aah 8, lpmel Acar neg cpio Avi i 3d ul Gen sin oh Cngoy cond ai fe 2018 thy ve ited er ul np xd eng le, er ensches recpine br evar CAPITAL The Authored Cop ofthe company is Tk 100.00 crore ond Fid-up capt is Tk 43.11 cee \ [3 | fps eusn une: nCORPORATE GOVERNANCE The Boot of Directors is commited towards meintining an effective Coperte Govemance Stucue ond Process. The Companys ‘operations are directed and controlled within the Corporate Governance Code. HUMAN RESOURCE The Company’s Human Resource Policy is driven to reach its Corporate goals ond objectives by including o strong volue system ond ceics nines ‘The Compory is focused on developing oes ites Sint eats jail STATUTORY PAYMENTS The Directors are sotistied thot oll Stotuiory Poyments to the Government ond other stotutory institutions including employee retoled peyments hove been made in ime to ime othe best ofthe knowledge ard bei. INVESTMENT 1 ton tiv fT. 7500.00 with Gla Eakin fm of Gv. Testy Bad es Suva Dept, he invested its Fund in Fined Deposit, Shores, Debentures and STD Accounts with verious Banks. Besides the Comp a ime piece oflnd for Buleing Cammertil Complex Cum-Heod Ofice inthe hea f Cy. The poston of ttl investment ot cos is os under: i [| EASTERN NSUEANGE CO LD2017 al ioe Notional investment Bond 25,000,000 75,000,000, Fived Deposit with various Banks 1200 000,000 1,130,100,000 Bolan in Diferent SD Accounts 40,034,516 44,704,423 Bolone in Diferent CD Acounis 1,313;803 2eh4ds Shores in Public C,(t cos) 3201475,334 295,061,200 Sie mtb Money 85, $0300 2598830 12s & Deposit Money in 5,909, i Subsidiary Compony ond 226,875,000 226,875,000 2,101 392,877 2.011,046,493 MOTOR VEHICLES ooo A es he Compas 25s ets oo st of te sae as 49 ee ny Pesos moe ese favo bon xoeded tha he valu os datarinctdby IDR. Al the voices wor acquired raugh lens nance oranges. SUBSIDIARY COMPANY Tho Company hes formed « Subsidy Company nthe nome of EC Secures Li. whith is ow open ‘Chitogong Stock Exchonge Lid. Finencial Statements of E1C Securities Lid. for the year 2018 is also endl rece iomaton ond dss, usiess otvts in the with this Annual Report for ‘We report that: i) Thefiancolsjemens peared by he Monogemet fhe congo pest fils tte of oi, he esuk is operation, cosh fous ond changes qu. i) Pope: tocks of cuns ofthe Company hve been maintained. i) Agposate counting plies hre ben ose epi in pepartin the ironcol sleet cn tha he ecg aires ee Lnsed Os eonrnle ond prude pegnoet” International Accounting Stondards, os applicable in Bangladesh, have been followed in preparation of the financial stotements ond taylan fe eh em lege tang mn “ \)__ The system of internal control is sound in dasign ond hos been effectively implemented and monitored. Ai) Thao no sign dubs upon th Campy’ ei oninue so gin cnc sil) Theo a no sigifcont deviations fom lst yer in opting eu che Company. vii) The key operating and fnncl doo of receding five years hove been shown in gogeon 73 2 Pn cen yh CE di 0 wt end seed ncn a 9G) dsl anne (page no. 2) Text aryl scat mcg caplet hil eu deco be. ido a During the yeor ended December 31, 2018, the Boord of Directors held 5 (Five) meetings end the Directors serving on the Board ended i ayaa 53% che lamba of eins, ail) i Decemter 31,2018, the poten of shrchaldng ae given blow: «) Shorcoldings of Pren/Subsiin/Isoite Comparies and othe ltd pres: Mi 1) Shorholdins of Ores, CEO, Company Secetary, CF and Heod cf Intel Aut ond th Spouses and minor ciléren: 1 6g | EASTERN suRANCE CO. UD gen iy F)rene enn enn ‘Mr. Mujibu Rehman Nx. Mohammed Ahsan ojo: (etd) Abdul Monnan Nr Mati Rohmon ‘Mrs. Umme Kulsum Mannan ‘Nv, Durand Mehdodus Rahmon M.S. D. Alam Mr led S. med Mr. Rownok Karim Nr Mohommed Isat ‘Mr. Mohammed! Mohsin NY. Sunman Sweaters Li. (Represented by Mis RokeyoFerdous) Alphe Testiles Lid. (Representd ky Mrs. Taino Monnon) Pioneer Dresses i. ( (Represented by Nr. Ros Uddin) Mi, Zokia Rahman Ns Uttore Propet Lid (Represented by Ms. lzzeen Rohan) Uttara Apporls Lid. (Represented by Mr. KI, Hossain) xNayeemur Rehman 9 CEO/CS/Head of IAD NIL 4) 1 ‘Mrs. Showkat Ara Alam, Spouse of Mr. S.D. Alam, Director. 54,139 ) ‘Shoreholding of Executives Nt Ad, Iqbel Makmud, Dy Managing Diecor 7 ~N Khoiul Alam, St. Vice President ‘Mr. Sworup Kumar Soho, Si.Vice President & CFO 4) | Shoreholers holding 10% or more voting intrest wl 3) STE USDIRECTORS In accordance with the provision of article 115 of the Articles of Association of the Company one-third of the total members of the Dit ol ef eof od bisa my oe ees rede se porno one 17 es sani ve Compony. Accordingly os ion of les ciation of tk any the following Directors representin Sper heat ‘aul te honshes rece men N ” eee 7 too at) A eras 2 Motive Rohmon 3. Hr. Mohammed Notsn 4 Mt, Mohammed Ahsan ‘Aso s per Articles of Association of the Compary the folowing Directors representing Group “B” hol rete ond being eligible offer theniselves for 1e-election, 1. Noyoemur Rohan 2s. Tozreen Bohman (Representitive of UttoreProperties Ltd.) APPOINTMENT OF INDEPENDENT DIRECTOR Tocamply wth he BSECsrquromont tho Board hs apocined folowing wo pasoalitis os Indopndont Diedos: VM AT. KM, bsmail 2. Nd. Jokir Hossain, FCA Theis ofeppoinment of he ndepenit ectrs wil be laced inthe framing 33rd AG or shreds eppeel ACKNOWLEDGEMENT Te Boo of Decors woud like orcad is appreciation forthe general suppot ond c-cpetation extended by the Grvernment of he Peoples Republic of Bangladesh, the Ninsry of Commerce, the Minis of Financ, the Chairsan of lnsuence Develomert ond Regultary Ahoy, th Bangladesh Soci and Exchogo Commision, Regia of on tock Compenis& ims. Tho Bod deply apprectes the series ord support rendered by Sadharan Bima Corporation, Daoke Stock Exchange Lt, Chittagong Stock Exchonge Li. The Board woud also lke to exes its dep gate to eleemed Sharebldas of he Company for heir continuing suppot rd auidace, The Booed obo takes this oppo to thank Bonlodesh Eon, ol Scheduled Boaks ond Finance Compies, eur valued ns pts en wl kes nn Fe Be go eter Hs oocyte ender vou. FOR THE BOARD OF DIRECTORS he (Nujbur Rehman) Chairman Ooted: 20th June 2019 Place: Dhaka. EASTERN nsuRaNeDIFFERENT COMMITTEES OF THE BOARD OF DIRECTORS EXECUTIVE COMMITTEE 1. Huy Reon, Chiron aiman 2 Noir Rohan, Direor Merber 3 Mejor (Reid) Abdul Nannon, Director Mabe 4H Nokonmed Mchsin, Direc Mabe 5. i femal Hosoi, Vie-Chimon Member 6 A iced S. aed, Diet Merb 7 Rois Uden, iret Mabe 8 tlohomed Heron Petwon, Managing ier & CO Mabe CLAIMS COMMITTEE —— ees 1. Aamal Hoss, Vie-Chimon toiman 2 Nua Rohnon, Chiron Merb 3° Noi Rohan, tizeor Mabe 4 KicledS. Ahmed, Deter Mamber 5 Rois Uden irc Morb 6 Hs, tokio Rahman, Circtor Morb 7A Noyeemar Rohan, Diredor Meret 8 Hokonnad Hoxon Peter, Managing Died & CEO Meber ‘AUDIT COMMITTEE —Sa 1 ALTL IN sma, Independent iecr Chairman 2 Na imo Hossain, Dec Meer 3H Aamal Hosoi, Vice-Choirmon Mearber 4H Duron ichéodur Rahman, Dien Mabe 5s. Teen Rahman, Decor Meer 6 A Nyeemar Rohan, Diretor Mba 7 W.Aokonnad Hon Ptwor, Managing Diredor& CEO Mrrber NOMINATION AND REMUNERATION COMMITTEE (NRC 1 AN dak Hoss, FC, independent Dicer hoiman 2. Nua Ronn, Chorran Mabe 3 lu. Amo Hos, Vice Gaiman Mabe 4 Hohommod Horan Petry, Managing Dire (£0 Marder BUSINESS PROMOTION COMMITTEE as 1 Nokommod Mein, Direc Chairman 2 We NjburRahnon, Choiman Member 3S. Alon, Dredor Merb 4 We. Not Rfran ear Maer 5. Duron tehdodu Rahman, Deir Merb & Ws Tino Mensa, Diet Mabe 7 Wu Hohonmad Haron Petry, Managing Dic & CEO MerbSHAREHOLDING STRUCTURE ened dis Sposa Shereholées 21948780 Insiitutional Corporate 11,979,501 Individvol/Genera! Public 9,186,863 Grond Total 43,110,144 Sharehoding Structure-2018 1 Sposa Shorhlders 1 sittin! Corpote 1 IndivideaV Gore! PublicKEY OPERATING AND FINANCIAL DATA FOR PRECEDING FIVE YEARS ARE AS FOLLOWS vi} yA A} 2015 yes Peid up copital 431,101,440 431,101,440 431,101,440 431,101,440 431,101,440 Gioss premium ines 460,805,378 418,867,413 393,366,679 380,599,944 360,748,055 ‘Net premium income 134,961,651 210,644,230 209,818,512 207,727,077 205,600,220 Net claims 43,258,080 51,257,616 52,997,017 66,577,876 50,060,079 Pre - tox polit 200,346,954 190,964,676 183,481,689 162,724,765 162,130,747 Cash dividend 96,220,288 86,220,288 86,220,288 86,220,288 86,220,268 Total essets 2,295,026,593 2,152,306,463 2,092,167,050 2,049,062,810 —_1,978,281,771 Total reserves & fund 1,306,958,484 —1,239,843,707 —1,176,675,408—1,119,447,318 —_1,089,247,795 EASTERN mnsunANcE co. LTD, ef aaAnnexure-A Declaration by CEO and CFO As per condition No. 1(5) (xxvi) of CGC The Bood of Dretrs fosein insurance Copeny Ud 44, ilasha UA Uhko- 1000 ‘Subject: Declaration on Financial Stetements forthe year ended on 31 December 2018. Dear Sirs, Fusuont tothe Condition No. 1(5)(avi) imposed vide the Commissions Notification No. BSEC/CMRRCD/2006-158/207/Adminv80 Dated 3 June 2018 under sein 2(Cof the Seuities nd Exhenge Orion, 1968, wed hry dre tht: 1. TheFinoncal Sttaments ef Foster lesronceComgory Li. fo the year ended 2 31 December 2018 hoe ben reared in compinee with ItrnafioralAcceuting Stondrd (1S) oIteetonal Francia Reporting Stndards (RS) os plicable inte Bonglodesh aed ony apa Hee rom hn been cdequtly dose; 42. Theestnats ond judgments rected fo the Sinan tremens were made ono prudent ord reasonable bes, none fr the fioncil ‘totements to reveal o true and fit view, 4. The fm ond subzonce of tronsocions ond the Conpony’s soe of ais tov bees ecsonbly and fot peseated in its roncil steers 4, To ensue above, the Company os ten proper ond equate. records; 5. Gur intemal audios hove conducted periodic eis tpi reasonable essrance tht the estolshed policies ond procedures ofthe Gapony wee consistent olowel; ond 4. The maroyenents ue ofthe going concen basis of acounting ie prepaing the Sane sttemens s oppor ond thre exits ro ‘matoriol uncereinty rated to evens o conditions that may cost significant doubt on the Compeny'sobilty to continao os a ging concern, in intlingo system of items coate nd mantenan of counting In this regard, we also certify that:+ i. Wehevesevinod the finance setenens rth yer ened on 3 Cenex 2018 en tot ts thebestof on knowledge od tet €) thse statment d not concn ony mteoly univesotement or eit any mati fact ox cnn stents at night bo nisecdng: 1) these steemens colectey present rue ard fo view of he Conan’ fs and ein compliance wth existing ecuntng sodas cond oppicabe laws ii Thea, ott bes of knonldge en beef, ro onacions ented it by he Company Zing he yer hich oe koulen, iegl cin ‘olan fhe code of cena rth company’s Bodo ices mendes. ‘Sincerely yous, (Swarup Kumar Saha) (Mohammad Haroon Patwary) hie Fiacial Oct (C0) hie acutveOfice (CEO)[BGIC Tower (th Foo) Mahfel Huq & Co. Gru oes eapesaat Chartered Accountants “Tol: #86.02-9563143, 9581786 Thefratropsteros azaurtng em mindepencent Bangladesh Fax 289-02-0571008 Esmat : mhg@matvenuacom 2 Wee: rw mahiohua com agn ” _nincependert member frm of AGN International Annexure-B REPORT TO THE SHAREHOLDERS OF EASTERN INSURANCE COMPANY LIMITED ON COMPLIANCE ON THE CORPORATE GOVERNANCE CODE [Certificate as per condition No. 1(5)(xxvii)] We have examined the compliance status tothe Corporate Governance Code by Est Insuance Company Limited for he yor ended on 31 Decent 7018 This Code tlts to the Notfcaton No, BSEC/CMRRCO/2006-158/207/Admin/80 doted 3 June 2018 ofthe BangadeshSacuries rd achonge Commission Such complince wit he Copaate Goremnce Codes the esponsiity of he Compary. Our examination was mite tthe procedures nd implrertton there os adopted bythe Nonegemert in ensuring complicnc to te condition ofthe Carports Governance Code. This iso scrutiny and vrifcation ond an independent uct on cmplicnc ofthe cndions ofthe Corporate Gaveranc Code as wel os the provision of eleven’ Bangladesh acetal Stonérds (BS) os adopted by Insitute fChatied Secrets of Bangladesh (IS) in <0 fos hese standard not inconsstrt wth any coneiion ofthis Corporate Governance Code We sie that we hove obtained al the infomation and explanations, which we hove requied, ond oer due scutiny ond vericaion ‘hee, we repat hain ou einon: 1) The Gmpony has complied with the conditions ofthe Crprate Governance Code os stipulted in the above mentored Copoate Govemenc Code issued by he Commission; 1) The Company hes complied wih the provisions ofthe relevant Bangladesh Secretarial Sondods (88S) 0s adopted by the Insitute oF Chartered Secetts of Bonladesh (CSB) os requis by this Cae, Proper books end records have been kept by the company as required under the Companies Act, 1994, the secuttis lows ond other ‘elevant lows; ond @) The Governance of the company is satisfactory. hugh. For Mohfel Hug & Co, Chartered Accountants Dhaka, 29 Api, 2019 Hovlader Mchf! 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(0) ecg ps od esi appeared sees, v eek pet (0) dings noc peso est ony, ey desig i i far pebmocn ere codec pi or velcahfosinabale fon | y fushdomes {Geonpateoc dtng as aa) dan plo rho for esto es ele sh fons bx cuet eco yes wih iets pig | faye oi aces on ‘Gegae sch faialpomave ores alan pain al so Paws he pil sig {iyi nl aed ni sc aia be Vv (Gis or crcens sus ell fe ocd Sens, plan sh Tika cour poly eran nd {Rte jln rpc Tees reopens operon, pavemence ond oad ese, wih sce fee, i, ool st hl te led te shalales | into rest Toa) [Didi on Wl eC ead weg wd don | 1, (9) sl beds asp: mea od TE) | Te eps eos ceticoe pd onpine doaiow dRsGaeesropael | de condone 9st desl er Amore 8 an nex 3 -peistenn guano. A 1 79 | saTo} oeing eh Bead of Dinos The cnpay sal cn is Bard tgs cd read ites ote tings os velo: Fey pind bls and cds in wih the pss oe det Bille Seeil Sadar QS) ood yh tv Chet Soi lentes 3) nso fo hoe sanded nt ics wih oy odin cy 1 ‘Gade o Gada forte Geigy, cer Bard mens xd Gel Beatie Ofiar {ote Bead sot ny den « ode cand, bse en he cerned of he ‘Noninin end Rerun Conner (NC ot codtin o.6, f fe Cinesen the tend, br ber menus ond i rive fete enpen, (We cde of codec os dterinel fy the URC sal be psed x ewes oe ry ing, ang oes, pn cox on Lehrer, cadet, clit ines, enplono wih lows, hs ed reuins pon of iar todng «Sota wih enorme eng cates ced ples cn indepen. ‘Governance cf Bead of Dido of Sosa Company: 20) ‘avis eng othe onposion oi foad of folding cmpay sal be mde plaetathe campo of Berle sida ompeny mH) TH os Ti) indepen Gece on Road of bling onpny sal «| oro the Foard after conpan; a Tenis fe Bad meng he lt company sl be le Te ww othe {avg txd mtg ofthe bling emony, Te nna fence Boe vig of tefl ongoy sel sie hey Fave ene i afi ofthe ssi npg by, 7 Te ft Coit oft Fong conpony shill oo ww te Sunl sents riche ies node by he ssi comp ‘rosin Dire (WD) or Chie Eeuv Oe (CE), Ciel Fnondl Ofer {((F0),Heoé of nterat Audi end Cemplisme [HAC end Company Secretory (5): 3) ‘opaine: {Te Band sol appit «Narn Detar (HD) hie xcaine His (EO, aan Sea (S), 0 Chi Facil ces (ord Heal tral oo pee (HUQ), (Ul pots oe Mra Dra 1) Gil Ee er (0, Compr Saat (9, Gi Foxe Hc: (0 end Hdl el ited Cenpenc (GC ee ied eerie (Cie WO & GO, © CO ond WUC oF itd conany Sal tld ony actin ston in cry het onan othe sete; {le oud Sol coy Hee ws, eset od dos eC, the HUCoad a, {ile HD (EO, , GO ee HC sal nt enced fam epson wor ‘jpn the Bod os wl as inmate senate othe Connision ed sock ceuge). “A 3) ‘Roqurmert pce Board of Decor’ Weenes ‘etd x0, SCO HA he npn soloed te meting ote tad, Poveda! the (, 10 anf AC scat ated ach pt fo edge aod bie is enim ged it gat psn mats 30) ‘ato Managing Dreier WO) or Chie reste fir (CEO) end Crk Fal fir (FO): 30) Te HO CED aed C0 sil ely tote Bond Wet ey ve wed ore sttenents yet xd to bast ott onl en bali INSURANCE C0.M0 te sees oo cin ory nowy are sited cent rye a cotéascenenstn nh bamsledeg ood oll, OOM est ster ge ese te od fo vw fi vpn’ fits od ce in caplet eising cuntg senda an eps la 300) THe HD CEO ad CO hal to eh The wb Facer ond bee acid ne yh conpany ding tt yr wich ae, vin te ode onda fe cong’ Bo cits nents, 300 The etn oie HO e EC od C0 sa eS in Aa Rea. Brod of Dieden Connitee fer exsing god goenoxein th copay te Bod shall he tet foie b- canis 40 di Gennes od ‘i aon cd Remo Comin ‘ud Cont: 30) Reporiliy oe Board of Diedos, EO) The enpeny halla an at Connie se wk cmt elie Foad, 540) The 1 Connie sl ss Yoon eng Ht te fox soem lee tat vin fe toe oso cng colin xsi ¢ ged esting spt iin tse. 0) The fd Connie sal be rsp Be Brad, Gis oe rd Coen stllb cody toch wi. 3 Gosinton fife Aud Commitee Sta) Wok Cont il cnpeed eo 3 (re) mantis 50) THe Bavd slept menbus ee Ad nits nn il be wc rect the cngon xing Cotes fhe Boo and linc hos 1 (independ dit, 5a) “A nner ote eat cote el be “oonly Wea” ed eV (oe) nba sal tw acute fox! minyene bedkgnnt on 10 (ea yon chegetene, Eeplraton hte Feri line eos he ily ed ord dst he ford scenes Ike stenen of rnc ain, sneno cree ine, shone of hngesineqit end Cole Steen ade pe wi be andl ve cui o rbd foc mencganet eat i he wt sh poses poles uct Acai fen youl wth tet 10s) eon ie noreenet probsiel eee sm Vier he em of sev fe aries neni ins Tee ow See casing x Conte entero la oi ble epinton le en sav, mig eae oth Cait nanbasto bev tn te erabed rune of 3) pres, Bad sal pt ne otek th roan mney rot te | fo) me fon dof vey int Corie nerve cnn oie erence wt Gn. wh Ste) The ong see ila hese lt oi, 50) The quan of te Ad Gate meng sll ot stn wt tat (a) inkprdn dnc 5) Ghirparn ofthe hui Comin 5) TW ferdshal sk es) mob Bo Fed Contes be ip ibe edt Gorn, stlbe nde inc;500) Teh ane poe lt oi, ening renbo ny doe tue henshes sage rer meg in ht cet to pln ol ansinig oun ied nrc oS) on econ els lth Geen al te i ade ae is Nosuhnet SD Goipesm of he At Coote sal enon pee te wal ear een). Pred ain ose Cigar ht Cane, er ane en ta ‘ait Gants sil ell oe ps in be ane gen zing (col ef dane he pas fh ad ene sl be ced in he itso 30) ‘esting fd Conon 50) "We kd Cote da et ans are os, Proved ot ony emngeny nein in tin oor neg my be omerdtihe ‘equstany ooh renbes fhe Connie, 50) Te quo of meg oti ft Conite hl eos im see oie tno mentor c Wot ote ments oe A Connie, wow ihe, ee wee of mindepndent det som 56) Rae ofA Conte Td Conine hl S90) ‘set fen tng pts S90) ene die fect poli en pce, 590) ‘oni tna hdl end Grp pcs na ft Ws obguey wed Indig opr ohe len Ad od Conpnnce Pon ondwibuctie tend dt xd eopione Reet, 0) ‘Gree iy ed ptenane data edios, SD THiS wenn wih he efend Soe dis Wr veven he one red tienes fe tsi te ea hr ppc obo ON evo along wie eoejenen, he onl hed scenes bbe nbs tte too tered « 30) ese oeg wih ie morogamen he uty orc ot enol stenensbeoe _sbnison it bead loc orpeo, S90) Rev lanyard et ein, 300 Preorders foe dog oe ie 50 Roosevelt pry vsti seated by wamger SHG oven Hongemd Les oer o Tatil Ceol wl ue by sais gies, a}eleie) < 560 ‘ses te deerizaton of ui fs ued on xe ord naga, lee of epee glned aot ts qed for elec cut ané ee he perbmone of eden dis cod ‘5()n) (eee whee pcs sel huh nel Pit Ofig (10) eet bic (fing (0 i She Oe bre ben tied he pees sie i ler ofr dounest csp ppoedy he Comin: Prove ht he menogenes sl hs oh kt Contes hohe wes crpctos of he poets by noc (cicl ened, sos cd natin epee, woking oie, en 2 quatey bas, os pot te quart decretian of fron sats: Fodedftet oo 0 eel es te engory shl pepno sern o te pvceds ied fr popes ce onsen he cfr dune ose flan ite auc Rp lrg wih he caress ad Cone 50) Ripa of he Ri Cnmiee ea) > EASTERN NSURANE CO. 7.Stile) | Reporting he Board Circrs S00 Ted Cote ih pe nis ovis the Bou, SGI) THe lod ene hl nna pt oe Bend oe ng ods Tony SOE) ot en ees tes, wi ‘SOE ‘aspen or presumed Fed we elery wre ed Wariedin eel lt cd onpare pres nh ancl soar uM SOON opel ifepnet lo, epi compares indy sis hw, wes eedropltins od wk ‘SOGGY cry hte vi Ba i Cente dens vss el be Schad Ba Bad nme, we 50) Raporog ee aries {ih ft nite lost th Bed bo nig wih es al ina ‘te incl contin codes poten hes cs wih he Berend ‘mragentl ht on wtfnin is ees eed iis At Cnt Ss tht 20h ‘eicionosben esryige, h ladtonte il pt sth iy fe onmison wee pt of uch nates ike Bod teense angen dt eid ol 6s) mas onthe de fisting he ar wise, 0) ‘Reparing Ye he Shareheldrs ond General evesters ‘eprom cities cored ony the At Commit, nding ery reat mde to the ‘oad andr cretion Ne. 5,(60)p) cbve ding ho yen, sal fe sind bythe ‘Goines ee Akt Connie ord Gsces in he xno ptf the sue company. oninatin ord ReneneraronConninee (RO: a ‘Resonsiyothe BoadofDeeaos C0) Tie conpany sal Sow Nonfoton ond Remuwion Conte (WR) oo we cerita oth Brad; RI We HAC sal east te Bad Tendotan & Fe wenn ae w poly Te deeming quite, poi anibes, eines ond dependence dics ond top eal exes o vel «gly fara paces of condeing nouneion hecos, pple nai; 50000 THe ernsol ten (ol de NC lt dels hn wang oe wos sheet conde 0.65). Co) Gonna BRE coo THe Connie hl ape cf oo ie neering en ndpnden drt, 0) A menbas le Cait sab nr-nese eco, SO “ert of Connie salle ead od epic bye Youd Se) Te fer shal hae ovary eno on ppt ony meni ofthe one, a/-}-|-| aN) Teco ei retin, tga, eel ef ey menbe fe Gate in ery le css ol vcnces, the bd stl i fe vcr win 18D handed ah) ds of cag sch reine Cente, WA st) THe Gnineson ihe Commie nay oppo or ceo ery weed pet onl monte 6 sof tte Conniteo os chit vb tl be no ig meno, if the hipeso be toi or singin fam sth eel eet ent mente) stl hallo rb fro ont; Wh St) Te npn sec sal evento Con, SEY Te gana of te WRC netig sal 0 ese vio tence of ot ast or Inde doe, 50) 1 nen fh Chal ee, eer Gel rind, ony ewe br ny cba casino tooth Dif ot hanon fom he enya. INSURANCE C0. 1D.pain ofthe RE Tho Bod sal alc 1) enter de WR be eipoon cite Gave, who stollbe indeed dct, Tne abe of Ghee oe AR he renang wenbas my Hone fonsebe : Grip that parton, th nn of obo te giler (Qoipesn sal edi del nents, Se The Giger oft NRC Sal ced eared gel wenn Gt awe te petal te bodes Pvdel hat inctsrce of leipeso oh NR, em or men fon he URC hl be sdeced tobe peste cred ewe! neing (A fo orsveing ie doo’ ‘erst sont hse othe Cipasn ofthe NRC shl ered te ints eft A, oh eet oe NRC S)(0) Te BR ol enc atest oo aig Hoel a, Tider Ps 0) The Ghienon oe HEC may cee ory emery esi won que Fy on enbe te I ue 5) The cusun oe eng ol ie NC sab coustoedin prem ol ether womemes to thid ofthe manta of tho arnt, wba igh, whe psec at indy ic ns ied nt cx, 90); Wa 50) He pcedgs ech mete fie HRC hl diy be adel he inves ord adh inde stl be cfimodin nt aio IRC Ms 5t5) Rael HRC co TRC al indole ok vse ecole fo fe Boe oo 1 We stables; G0) TRC sial owe, ag ers the Olbwing wales ord wale ro wih twennndee ete Bod, 500 Feral fe ear étemiing waco, poste ots nd wdaperdine ofa deco xd reamed py the bod eng othe reuters fhe icon, ple ect, ond te fling SOOO Tie blend composi a enucin aoombe eed so ata an ond oll stile Gato unth pany ces N00) ‘he elolip ofteneatin ta pefomine der end meet cpp pfenene ancien: nd SEINE renunaoton odiedor, pple! ence ics cone bree el nd inene yc sla od legs pfeenone cities pap oe wing of he ego ends gels HOO Decoy «poly on Bors Ges king wo csdesion oe, ged, ene, efi, acfrelbogo end reay, HO if pron hoo quid oone vcs ond we yb epic inop tel ec pton in coda i he cea li dom, ed recomend et crpininestnd roel oe ou, E000) Ferultng te iia fred of pefoman ol indpeatet dics nd tha Brad; SEO Teenitjng He conan/s ets fr eno eWret Web end dane et deci, tose poem ard potion cig xd SEOY Gelpig, wormndng oe vovrg omy he eya/s Ramon vans oo ng pices, 0 The conpny so dso th mncion aod rv poly ord the eabotan ein! itis oF IRC dng eyoretadeeaintserous pat 7 Enea or Seo ders:7) Te ise omony sll et egige i obese ates fo pom ta foliar e conpey ronet- ¥ TE | nisl wate series foesopng v TRAD | Feel faratnytns in dint, v TMG | Bak kage be seves ado Be cong ead andl nets ¥ TUNG) | Biker: services, Y 7) | Aides TG) | lewd ev on wt ie, v 7a) | Aye ats ad Grits eins v Ta | Ae wn severe opr ope goons @ wad we | eosin to. 50),04 TUNG) | Ay ter sei tot cea ni ois ¥ TE) | Nae: ngs el vi ens sal pases ay io oe congry hyd ot et ing eer sit igen lt cong, sore fan ents ota hl eth soesin eso opin y ovded tt oe, 30, deh, fae, mle, babe, se, aninlo cd eshte ered ti nbs TE) | Reese oer oso eds selena rane Soa Neeiog (loud Gee Meing o Gintiran Genel Nein) mcs ie usised | tte dodo a oii owibsiy ta Conny 3) | Te npeny sane on cic vel ld wh he wise oie shox. i) | Tenge slp biter on eT istg GE) | Tio open Bl el el led doe wt oreued ode ttesng paso cnc skh) 7 Taortng ond ampli of Coparde Goren: HY | Tengen ob aceon ring Peso Neoen Seren (Goteed Aco «(os end Narogenet Acar Cee Ste) her tants soy cds cnt hn 0 yoy cis eade ong Hoos | ¥ Capt Gonna Cech Coens od sl ch rete in ttedaud Rie HE | Te plesino wo wl pote ec pla ol is Coyote Genena anaes dette opned byt soho cra geal eng FE) | Te ec he company sl on aca wh Re ane C ached ae _deecos apr whether the cempory bos capi wih these cantina at STERN MSURANCE CLD.REPORT ON CORPORATE INTRODUCTION GOVERNANCE Corpoote Governance isthe system which helps the Compary to manage the overall interest of cll stakeholders. Minimum stondard of acceptable corporate behavior means to ensue greater transparency, accountability ond timely financial reporting. Eastern Insurance firmly boioves that business copetation meons deling with the stoksholdes with trust and confidence ond theres 0 link between stokeheldens velve and governance With thot objective in view, EIC hos been working relents to ene long term stkeheldes vue ‘The Bocrd of Dieters of the Company is commited to high standards of Cporte Governance which it believes oe crucial to business integrity ond performance. AS 0 responsible erponte cz, EICL is oso commited to maintaining ful transparency ond positive business internally and towards the Cement with which EICL cones ut its business, cling ts supplier, customers and business partners. At the some time. tho Company expats tht oltsBood of Directs, employs cand supplins would ect with honesty, intoriy and openness, Boing a pubic sted Company , the Boor of Directors of EICL hos 0 pivotal ile to play in meeting stakoholes intrest. In dschorging such obligations, the Boord of Cirecors ard the Management teon of EICL cre commited to maintining efecive Corporate Governance though ¢ clue of ‘accountabiliy, transparency, well — understood policies ond piocedues, EICL considers thot its Corgorote Govemonce poctices comply wih oll the aspects of BSEC’s noifiction no. BSEC/CIMRRCD/ 2006-158/134/Admin/44 dated 07 August ‘2012, SEZCUARRCD/ 2006- 158/147/Admin/48 dated 21 July 2013 ond Subsequently amended through ther notation 4 BSECCARRCO/ 2006-158/207/Admin/80 dated 03 June 2018 issued undor soction 2(C of the Socuitias and Exchongo Ordinance, 1969.BOARD OGANIZATION AND STRUCTURE: BOARD COMPOSITION ROLE AND RESPONSIBILITIES OF THE BOARD st BOARD MEETING The Bond of fosen Insurance Company Limited tas been stud wih 20 Dict os on December 31, 2018. The Bord of ECL is sells 12 SporsrDietrs 06 Public Shaeholers Diets (2 Independont Deets The Board is hoted ty Mr. Mujtur Rehman on eminent businessperson ord well reputed indstilthovng diversified business ensues. The Decors fhe Bond oe cppined by the sharable at the Anal Gael Mesting (ASI) oné acurtbe to the ‘shoreholders. The Boord is responsible for ensuring that the businass ats are soundly administered and efectvly cond Tho Diego of th Boad kop thamsohesinfomod abcut the Conpony’s Frenil poston and ene that is cctvties, eccounts ond osset management ore subject to adequte contol. The Bon also ensured that EIU'S Plc ond Procedues ond Codes of Conduct are implemented ond tmoinained ond the Comgony adbers to gently accepted principles for good governance and efeive conl of the Company activities. 1h addition to the otter legal guides, the Board hos obo doped “Governance Guidelines” forthe Bood fr ensuring tere governance inthe work and odinstain of the Boord The Beard is oso guided by Delegation of Authority which spells out the proctces ond processes in dschoging its respnsbiitis The AOA ofthe Company rquites the Bord to eet ot lest fou: meso year mare when dl called fin wing, Does forthe Bond Meetings ino yeor oe decided in advance. Such Notice contin dale sttemert of busines o be tansected cat each meeting, The Board meets for both scheduled meeting and on chor ocasions to deal wih uigent ard imortnt matters thot require attention.ROLE OF THE CHAIRMAN SUBSIDIARY RELATIONSHIP SS AUDIT COMMITTEE NOMINATION AND REMUNERATION COMMITTEE (NRC) ‘The Chcirmon is the hood of the Boord takes decisions of any ‘matter in consultation with the Boord members. He is not the Chief Emcutive of tho Company, Tho role ofthe Choirmon and Nonoging Dtectr/CEO ore independent and sepoate. The Choirmon rons the Board, while the Monaging Diectoy(#O. tokes executive decision within the jurisdiction of power delegated by the Boord. The Boord of Drctrs of the Subsidiony Company of EICL is obliged to provide the Board of Directors of EICL with any: information which is necessory for an evaluotion of the Company's positon and the result of the Company's activites. ICL rol the Subsidiary Companys Board of Directors about the matters which may be important othe Company os whole. ECL also notifies the Subsiinny Comaony’s Bord of Diectars bout dacsions which may be of importance to the Subsitiory Gompony befte a fra decision is made, The Boa f Dre hs costed an Adit Commit of he Board consisting of 7 (Seven) Deco. The Aut Commitee is heed by the Independent Decor, Mr... KM Isa, Red Secelay, Government ofthe Feples Republic of Bargldes. Tho Audit Conte caries out its esponibis os gr tho provisos of lew on submis is wot tthe Boa of Decers fom time to tne, The Aut Commitee shall abo co ointe wilh te into! end extemal Audios os ond when requied. The Aucit Cite ensues that adequt intel checks and balances supprtd by adsqucto IS arin pac fr detection of eoyfreuds ond otter deicencis. The ober resporsbiitis inde ove nat being limited tothe reventon of can of inteess between the Company ond its Diectr, Oficial, somes Suppliers, Goverment ond on athe interest groups bat also to detect of rmove any scope of insider tracing. The Audit Cite oso exsues complone of rquements of 8SECard othr egeces The Board of Directors has constituted ¢ Nomination ond Romunerotion Committe (HRC) of the Boord consisting 4 (ovr) Ditecters. The NRC is hecded by the Independent Director, fe. A. Jokit Hossain, FCA Nomination and Remuneration Committee (NR() is o sub-committee of the Boord a the Company to comply withthe. BSEC notfcation dated 03 June 2018. The cemittoe shall assist the Boord in formulating the nomination citeia or policy for detemining quolcators, pasitve otributes, experiences and independence of Diectrs and top level execuINTERNAL CONTROL HUMAN CAPITAL The Boor is oso responsible for ensuring thatthe Company hes ‘on odequote ond effective contol system in plece. By which Company's rescues are direced, monitored oné meosue. It loys on important role in preventing ond detecting feud and botecting the Company's resources, ‘The Compony’s internal control sysiem has been outlined to ‘ensure the Director with reosonable assurance that ossets are safe guarded ogcinst uneuhorzed use by the employees or management o:thrd poies; hansocions are fly authentic, propery recorded and material eer and regularities ar cher prevented or detected for regularization within o reasonable povid of time, Segregation of duis, Autoration of tronodion, Retention of reads, Superiion or Moning of options, Physical safe quads I oplictin cons othe essential elements of intaral contol ferewerk prevailed in fosterm Insurance Compony Limited. ‘Human Capital Management (HCN) is on approach to employee staffing thot perceives people as ossets (human Copital) whose curent value con be meosured and whose future volue can be enhonced through investment, foster Insurance Comoy Limited support HCN and provides employers wth dary defined ond consistently communicated performance expectations. Managers ore responsible fo rating, rewarding and Folding employees accountable for oxioing spectic business goals, creating inrovation ond supporing Costus improvement. The human coil con be developed ‘hough edvcatin, trainin, pracice ard exten. Easemn Insurance Compony td. as adopted the flowin pois to deo the Fumen coil. |The recruitment of local people ond then to develop their potential though earning oppotuies ond efleive performance Management. . Human Coptl Menagenent ome wk & designed to provide © wok fre that has the sk, fxiity ord divest to met he Company's curent end fue business neads. EASTERN JNSURANE CO