A

CORPORATE OBJECTIVES,
VALUES & STRUCTURE
B

Reliance Insurance Limited

Annual Report 2022
 1

Steadfast in the
Face of Adversity
The insurance sector faced significant adversity in the past year, but
despite these difficulties, our company remained steadfast in our
commitment to serving our policyholders. We have taken proactive
steps to ensure that we have the financial stability to meet our
obligations, while also adapting to the changing needs of our customers.

We have also continued to innovate and find new ways to better serve
our policyholders. Whether it was through offering more digital and
remote services, or finding new products to meet the evolving needs
of our customers. Our company has remained resolute in the face of
adversity, and we are confident in our ability to continue providing
reliable coverage for our policyholders in the years to come.

CORPORATE OBJECTIVES,
VALUES & STRUCTURE
Achievements of Bangladesh
$ 2,824 6.6% $33.83
Per Capita Income GDP Growth Billion, Reserve
During the Pandemic

73.29 Years 21.56 98.5%

Average Lifetime Per thousand Primary Education
Child Mortality Rate
Under 5 Years

2 34 45
Life and Non-life Life Insurers Non-life Insurers
Insurers (Public) (Private) (Private)
Highest Claims Paying Ability

AAA
Financial strength rating by CRISL

Gross Premium Income Underwriting Profit

3,523.63 615.20
BDT Million BDT Million

Highlights

Profit Before Tax Profit After Tax

882.68 615.93
BDT Million BDT Million

Earnings Per Share Investment Income

5.86 321.97
BDT BDT Million
4

Celebrating
GOLD AWARD
Reliance Insurance Limited has been awarded the
Gold Award in the insurance category among all
participants from SAARC countries from South
Asian Federation of Accountants (SAFA).

Reliance Insurance Limited

Annual Report 2022
 5

Awards & Accolades

We thank the three national bodies and SAFA for their
recognitions of Reliance Insurance Limited. We believe
that the said recognitions will definitely be source of
encouragement to us to professionally develop further.

CORPORATE OBJECTIVES,
VALUES & STRUCTURE
CERTIFICATE OF MERIT FROM
SOUTH ASIAN FEDERATION OF
ACCOUNTANTS (SAFA)
Mr. Badal Chandra Rajbangshi,
Chief Financial Officer and
Mr. Md. Israfil, AMD, Reliance
Insurance Limited are receiving
the “Winner Award” for Best
Presented Accounts and
Corporate Governance Disclosure
Award 2022 from SAFA.

South Asian Federation of Accountants (SAFA) was formed in the year 1984 to serve the
accountancy profession in the South Asian Region and uphold its eminence in the world
of accountancy. SAFA is an Apex Body of the South Asian Association for Regional Co-
operation (SAARC) and an acknowledged Accounting Group of International Federation
of Accountants (IFAC). SAFA represents over 300,000 accountants having membership of
the national chartered accountancy and cost and management accountancy institutions
in the South Asian countries namely Bangladesh, India, Maldives, Nepal, Pakistan and Sri
Lanka. SAFA came into existence at the initiative of the accounting professional bodies
in the South Asian Region, which has a bond of culture and homogeneity of professional
environment. South Asian Federation of Accountants (SAFA) give awards to the best
published annual report of the SAARC countries. Reliance Insurance Limited secured
certificate of merit from SAFA for the seven consecutive years for Corporate Governance
Disclosures 2009 to 2016 and 2018. Reliance received 1st Runner Up position from SAFA
for the best presented Annual Report 2017 and 2020. Reliance also received Overall
Winner Award among 101 participants of SAARC countries of all sector and Winner of
Insurance Sector for the best presented Annual Report 2020 and Reliance Insurance
Limited also received the Winner Award for the Annual Report 2021.

NATIONAL AWARD FROM THE

INSTITUTE OF CHARTERED
ACCOUNTANTS OF
BANGLADESH (ICAB)
Mr. Badal Chandra Rajbangshi,
Chief Financial Officer, Reliance
Insurance Limited is receiving
the 1st Runner-up Award for
Best Presented Accounts
and Corporate Governance
Disclosure Award 2021 from
SAFA.

The Institute of Chartered Accountants of Bangladesh (ICAB) is the National Professional

Accounting body of Bangladesh established under the Bangladesh Chartered
Accountants Order 1973 (Presidential Order No. 2 of 1973). The Ministry of Commerce,
Government of the People’s Republic of Bangladesh is the Administrative Ministry
of ICAB. Every year this institute gives national awards to the Best Presented Annual
Reports of the country. Reliance Insurance Limited secured 1st Runner Up for the annual
report 2020, second best position for the annual report 2014, 2015 & 2018 and third
position for the year 2016, 2017 & 2019. Moreover, Reliance secured first position for
three consecutive years from 2010 to 2012 and 2020.
NATIONAL AWARD
FROM THE INSTITUTE OF
CHARTERED SECRETARIES OF
BANGLADESH (ICSB)
Ms. Rashida Banu, DMD &
Mr. Sanjay Kumar Basak, EVP,
Reliance Insurance Limited
are receiving the Silver Award
for Best Presented Accounts
and Corporate Governance
Disclosure Award 2021 from
ICSB.

Institute of Chartered Secretaries of Bangladesh (ICSB) established under an Act of

Parliament i.e. Chartered Secretaries Act 2010 is the only recognized professional body
to develop, promote and regulate the profession of Chartered Secretary in Bangladesh.
Every year this institute gives national awards for Corporate Governance Excellence.

Reliance Insurance Limited Secured Bronze award for the Annual Report 2015 and Silver
award for the Annual Report 2018, 2019, 2020 & 2021.

NATIONAL AWARD FROM

THE INSTITUTE OF COST
AND MANAGEMENT
ACCOUNTANTS OF
BANGLADESH (ICMAB)
Reliance Insurance Limited
is receiving the ICMAB Best
Corporate Awards 2019
(2nd Position).

Institute of Cost and Management Accountants of Bangladesh (ICMAB) is the national

body of the professional Cost and Management Accountants of Bangladesh. Established
with the prime objective of promoting and regulating the Cost and Management
Accounting profession in the country, the Institute offers education and training to
the students interested to pursue career in this field and provides highly recognized
CMA degree on fulfillment of requisite qualification. The Institute undertakes research
in relevant fields and is the sole authority to issue practicing license to its members.
Every year this institute gives national award to the best corporate bodies of the country.
Reliance Insurance Limited has secured the 1st Position as the Best Corporate in the Non-
Life Insurance Sector (ICMAB Best Corporate Award-2015) based on Annual Report 2014
& 2nd Position for 2016, 2017 & 2019. The Company also secured first position for four
consecutive years from 2012 to 2015 (Annual Report 2011 to 2014) and Bronze for the
Annual Report 2020.
Corporate Timeline
20.03.1988 11.03.2014
Incorporation of the Company Received Certificate of
22.03.1988 Merit for Best Presented

2013 Certificate of Commencement of Business

21.04.1988
License issued for operating the first Branch
21.04.1988
Signing of First Insurance business
Accounts and Corporate
Governance Disclosure
Awards 2012 from SAFA
12.03.2014
Foundation Laying
Ceremony of Reliance office
Tower
12.04.1995 13.03.2014
Received consent from SEC for issuance Celebration of Silver Jubilee

2012
of public share of BDT 30 million 28.04.2014
01.05.1995 Received ICMAB First Best
Publication of prospectus Corporate Awards 2013
08.05.1995 30.11.2014
Listed with Dhaka Stock Exchange Limited Received 14th ICAB National
16.05.1995 Award (Second Position) for
Subscription Opened Best Published Accounts
25.05.1995 and Reports 2013
Subscription Closed 04.12.2014
17.07.1995

2011
Received Certificate of
First Trading of Shares on Dhaka Stock Exchange Limited Merit for Best Presented
10.10.1995 Accounts and Corporate
Listed with Chittagong Stock Exchange Limited Governance Disclosure
04.11.1995 Awards 2013 from SAFA
First Trading of Shares on Chittagong Stock Exchange
Limited 12.01.2013
Received ICMAB First
Best Corporate Awards
18.06.1996
2012

2010
First Dividend Declared in the
22.02.2013
AGM 30% Cash
Received Certificate of
Merit for Best Presented
27.03.2002 Accounts and Corporate
Purchase of Land for the Company Governance Disclosure
Awards 2011 from SAFA
28.05.2004 21.12.2013
Issuance of first Bonus Share (For the Received 13th ICAB
year 2003) 50% Stock & 10% Cash National Award (First
31.08.2004

2008
Position) for Best
Agreement signed with CDBL Published Accounts and
Reports 2012
20.03.2008
Completion of 20 Years of Service
01.10.2012
18.05.2010
Received 12th ICAB
Purchase of Office Premises
National Award (First
for the Company
Position) for Best
19.12.2010

2004
Published Accounts
Received 10th ICAB National
and Reports 2011
Award (Second Position) for
Best Published Accounts
and Reports 2009

06.03.2011
Shifting Registered Office
04.10.2011

2002
Received 11th ICAB National Award (First
Position) for Best Published Accounts and
Reports 2010
15.10.2011
Received HR Award 2010 Presented by Institute
of Personnel Management
29.11.2011
Received Certificate of Merit for Best Presented
Accounts and Corporate Governance
Disclosure Awards 2010 from SAFA

1996 12.12.2011
Received ICMAB Second Best Corporate
Awards 2011

1995

1988

20.01.2015
Received ICMAB First Best
Corporate Awards 2014
20.01.2015
Received Second Best
Corporate Governance
Disclosure Awards 2014 from
ICSB
10.12.2015
Received 15th ICAB National
Award (Second Position) for Best
Published Accounts and Reports
2014
26.10.2016
Received ICMAB First
Best Corporate Awards
2015
29.11.2016
Received 16th ICAB
National Award (Second
Position) for Best
Published Accounts and
Reports 2015
24.12.2016
Received 4th ICSB
National Award (Bronze)
for Best Published
Accounts and Reports
2015
27.01.2017
Received Certificate of
Merit for Best
Presented Accounts
and Corporate
Governance Disclosure
Awards 2015 from
SAFA
25.11.2017
Received 17th ICAB
National Award (Third
Position) for Best
Published Accounts
and Reports 2016
28.01.2018
Received ICMAB Second
Best Corporate Awards
2016
31.01.2018
Received Certificate of
Merit for Best Presented
Accounts and Corporate
Governance Disclosure
Awards 2016 from SAFA
08.12.2018
Received ICMAB Second
Best Corporate Awards
2017
24.12.2018
Received 18th ICAB National
Award (Third Position) for
Best Published Accounts
and Reports 2017
17.12.2022
Received “SILVER” (Second) ICSB
9th Corporate Governance
Excellence Award 2021.
03.12.2022
2014
Received 21nd ICAB National
Award(1 Runner-up) for Best
st
Presented Annual Report 2021
18.12.2022
Received Winner Award for Best
Presented Accounts and
Corporate Governance Disclosure
Awards 2021 from SAFA
2015
11.12.2021
Received 21st ICAB National Award (1st
Position) for Best Published Accounts
and Reports 2020
12.12.2021
Received “SILVER” (Second) ICSB 8th
Corporate Governance Excellence
Award 2020.
30.12.2021
Received ICMAB Bronze Best
2016
Corporate Awards 2020
23.12.2020
Received “OVERALL WINNER” Award
among 101 participants of all sector
and Received “WINNER “ (1st
Position) Award in Insurance sector
for Best Presented Annual Report
2017
Awards and SAARC Anniversary
Award for Corporate Governance
Disclosures 2019 from SAFA.
25.02.2021
Received ICMAB “SILVER” (Second)
Best Corporate Award 2019.
23.01.2021
Received “SILVER” (Second) ICSB 7th
Corporate Governance Excellence
Award 2019.
16.11.2020
Received 20th ICAB National Award
(Third Position) for Best Presented
Annual Report 2019
2018
22.01.2019
Received the best presented
2019
Annual Report and SAARC
Anniversary Award 1st Runner
Up position for Corporate
Governance Disclosures 2017
30.11.2019
Received Certificate of Merit
for Best Presented Accounts
and Corporate Governance
Disclosure Awards 2018 from
2020
SAFA
30.11.2019
Received 19th ICAB National
Award (Second Position) for
Best Published Accounts and
Reports 2018
21.12.2019
Received 6 ICSB National
th
Award (Silver) for Best
2021
Published Accounts and
Reports 2018
2022
10

Letter of Transmittal
All Shareholders,
Bangladesh Securities and Exchange Commission,
Insurance Development and Regulatory Authority,
Office of the Registrar of Joint Stock Companies & Firms,
Dhaka Stock Exchange Limited and
Chittagong Stock Exchange Limited

Re: Annual Report for the year ended December 31, 2022

Dear Sir(s):

We are pleased to present the Annual Report of Reliance Insurance Limited

for the year 2022 for your information and record. The report includes
Audited Financial Statements of Reliance Insurance Limited for the year
ended December 31, 2022 prepared in accordance with applicable laws
and regulations.

Best regards,
Yours sincerely,

Mohammad Mamunur Rashid

Company Secretary

Reliance Insurance Limited

Annual Report 2022
 11

Notice of the 35th Annual

General Meeting Through
Digital Platform
Notice is hereby given that the 35th Annual General Meeting (AGM) of Reliance Insurance Limited will be held
virtually by using digital platform logging in the following link https://relianceinsurance.virtualagmbd.com on
Thursday, March 30, 2023 at 11:00 a.m. (BST) to transact the following business:

AGENDA
1. To receive, consider and adopt the Directors’ Report and Audited Financial Statements for the year ended 31st
December 2022 together with the Auditors’ Report thereon.

2. To declare dividend for the year ended 31st December 2022 as recommended by the Board of Directors.

3. To elect/re-elect Directors.

4. To confirm renewal of tenure of the Chief Executive Officer (CEO) of the Company.

5. To appoint Statutory Auditors for the year 2023 and fix their remuneration.

6. To appoint Compliance Auditor for the year 2023 and fix their remuneration.

BY ORDER OF THE BOARD OF DIRECTORS

Dated: March 07, 2023 Mohammad Mamunur Rashid

Company Secretary

Notes:

(a) The members whose names appeared in the Member’s Register of the Company on the Record Date i.e.
March 6, 2023 are eligible to participate in the meeting and receive dividend.

(b) If needed, members can cast their vote through online (real time) or e-voting starting from 24 hours before
the AGM and voting option will remain open till the closure of AGM.

(c) As per BSEC notification No. BSEC/CMRRCD/2006 158/208/Admin/81, dated June 20, 2018, soft copies of the
CORPORATE OBJECTIVES,

Annual Report along with the Attendance Slip, Proxy Form and the Notice will be forwarded to all Members
VALUES & STRUCTURE

at their respective email addresses available with us as per CDBL record. These are also available in the
Company’s website at: www.reliance.com.bd.

(d) A member eligible to attend the Annual General Meeting may appoint a proxy to attend and vote on
his/her behalf. No person shall act as proxy unless he/she is entitled to be present and vote in his/her
own right. The “Proxy Form”, duly filled, signed and stamped at BDT 20 must be sent through e-mail to
Reliance Insurance Limited Share Office at emdad@reliance-bd.com by no later than 72 hours before
commencement of the AGM.
12

Table of
CONTENTS
REVIEW OF CHAIRMAN
CEO AND DIRECTORS’ REPORT
Review of the Chairman
2 50
Review of the Chief Executive Officer 54
Directors’ Report to the Shareholders 58
Summary of Accounts 65
Key Operating and Financial Highlights 66
Meeting Attended By the Directors 67
Pattern of Shareholding 68
Management’s Discussion and Analysis 69
Declaration by CEO and CFO 71
Certificate of Compliance With the Corporate 72
Governance Code (CGC)
Status of Compliance With the Corporate 73
Governance Code (CGC)
Brief Summary of Business & other Risks and 81
Managing Such Risks
Responsibility to Staff 84
Contribution to the National Exchequer 85

1
Key Performance Indicators (KPIs) to Measure the 86
Achievement Against Strategic Objectives

CORPORATE OBJECTIVES, Key Strategy of the Company and Basis/Process 86

VALUES & STRUCTURE of the Resource Allocation

Vision & Mission 16 Company Strategy on Market Development, 87

Product & Service Development
Overall Strategic Objectives 17
Information Technology System & Control 88
Profile of the Company 18
Segment Information 90
Company Information 19
Impact of Primary Macroeconomic Variable on 93
Our Core Values and Ethical Principles 20 Performance of the Company
Corporate Culture 21

3
Our Products 22
Product Diversification and Innovation 23
Our Business Model 24
Brief Profile of the Directors 27 SUSTAINABILITY REPORTING
Chairmen, Deputy Chairmen and CEOs From the 36 Sustainability Reporting 96
Beginning of the Company
Corporate Social Responsibility 97
Composition of the Board and Its Committees 37
Environmental Related Initiatives 100
Senior Management Team 38
Environmental & Social Obligation 100
Management Team 40
Certificate from Bangladesh Association of 101
Geographical Presence of Reliance 44 Publicly Listed Companies (BAPLC)
Top Branch Business Activists 46 Credit Rating Report 101
Corporate Organogram 49 Integrated Reporting 102

Reliance Insurance Limited

Annual Report 2022
 13

STAKEHOLDERS’ INFORMATION
Snapshots of Last Annual General Meeting
7 170

4
Snapshots of Corporate Events 170
Shareholding Composition 172
The History of Rising Share Capital 173
FINANCIAL STATEMENTS Financial Calendar 173
Independent Auditors’ Report 103 Our Position in the Market 174
Statement of Financial Position 108 Information about Unclaimed Dividnd 176

Statement of Comprehensive Income (Profit & Loss) 110 Dividend Distribution Policy 177
Redressal of Investors’ Complaints 178
Consolidated Revenue Account 112
Redressal of Clients’ Complaints 178
Fire Insurance Revenue Account 114
Graphical Presentation 179
Marine Insurance Revenue Account 116
Horizontal Analysis 183
Miscellaneous Insurance Revenue Account 118
Vertical Analysis 184
Statement of Changes In Shareholders Equity 120 Financial Ratios 185
Statement of Cash Flows 121 35 Years of Journey (1988-2022) 186
Classified Summary of Assets 122

8
Notes to the Financial Statements 123
Fixed Assets Schedule 141
STATEMENT OF VALUE ADDED

5
AND ITS DISTRIBUTION
Value Added Statement 188
Economic Value Added Statement 189
INFORMATION ABOUT
Market Value Added Statement 189
CORPORATE GOVERNANCE
Bangladesh Non-Life Insurance Market 190
Board of Directors, Chairman and CEO 144 Composition & Reliance Share
Audit Committee 148

9
Nomination and Remuneration Committee 148
Ethics and Compliance 150
Other Committees of the Board 150 SPECIFIC AREAS FOR
Communication to Shareholders & Stakeholders 150 INSURANCE SECTOR
Management Review & Responsibilities 151 Claims Management and Details of Outstanding 192
Evaluation of Quarterly Reports 152 Claims (IBNR & IBNER) with Ageing Thereof
Disclosures Pertaining to Solvency Margin 196
Going Concern 153
Ratios Pertaining to the Insurance Sector 197
Good Governance & RIL 153
Review of Asset Quality 198
Report of the Audit Committee 155

10
Report of the Nomination and Remuneration 156
Committee

ADDITIONAL

6
DISCLOSURES, CHECKLIST
& MISCELLANEOUS
CORPORATE OBJECTIVES,
VALUES & STRUCTURE

Human Resource Valuation and Accounting 200

RISK MANAGEMENT & Human Resource Policy 200
CONTROL ENVIRONMENT
Human Resources Management 202
Risk Management Framework 158
Glossary 204
Risk Mitigation Methodology 162 Disclosure Checklist as Per ICMAB Evaluation Criteria 207
Disclosure of Risk Reporting 164 Disclosure Checklist Regarding Secretarial Standard 208
Information on Company’s Internal Controls 165 Proxy Form 213
 We Deeply Mourn
the Sad Demises of

A. Rouf Chowdhury Anwarul Huq

(1937 - 2023) (1940 - 2023)

Our deepest condolences to the

passing of the great business leaders
A. Rouf Chowdhury, founding
Director and former Chairman;
Anwarul Huq Founding Director
and Former Deputy Chairman and
Ahmed Shafi Choudhury,
Ahmed Shafi Choudhury
Independent Director of Reliance
(1939 - 2023) Insurance Limited.

Your dedication, diligence and

contribution will continue to guide
us. You were our source of
inspiration, strength and nurturer.
Your fond memories will always be
cherished by us.
 15

Corporate Objectives
Values & Structure

CORPORATE OBJECTIVES,
VALUES & STRUCTURE
16

Vision
Our vision is to be the premier insurance
organization and the insurer of first choice in
Bangladesh with a sound reputation for
dependability, professionalism and the highest
standard of customer services.

Mission
Our Mission is to

Grow Bring
significantly innovation in
and achieve insurance
significant products
non-life and selling
insurance techniques.
market share.

Continue Invest in top quality

delivering human resources
Continue to be a
attractive and develop full
caring
returns to our potentials of
organization and
shareholders. employees by
employer of
providing continued
choice.
training and
insurance education.

Reliance Insurance Limited

Annual Report 2022
 17

Overall
Strategic Objectives
We at Reliance Insurance, realize that, for us to prosper, we need to be
flexible and responsive, to satisfy our clients by providing them with what
they want, when they want it and most importantly before other competitors
can offer it.

PROCESS FOCUS BUSINESS FOCUS PEOPLE/LEARNING

To have all products meet
standard of excellence
guidelines
To continually improve
internal process to realize
efficiencies
Improve system accuracy
and responsiveness
Improve organizational
structure
Improve performance
measurement and
reporting capability
Reduce administrative
overhead
Improve financial analysis,
controls, and audit
capability
FOCUS
Increase quality
Reduce delivery time
Implement change faster
Increase customer
retention
Increase customer loyalty
Introduce new products to
new and existing markets
Improve overall
productivity and maximize
market share
Improve marketing,
advertising and public
relations
Achieve and maintain
outstanding customer
service
Continuously broaden
customer database
by obtaining new
information on customer
characteristics and needs
To hire, develop and
maintain the right people
in right place
Employ professionals
who create success for
customers
Develop broad set of
skills useful for customer
support
To continually learn
and adopt current best
practices
Transfer knowledge from
leading-edge clients
To align incentives
and staff rewards with
performance
CORPORATE OBJECTIVES,
VALUES & STRUCTURE

It is important to recognize the elements that make our intangible resources, such as, our ability to relate
to customers regarding their needs and wants, management style, corporate culture and commitment.
These elements will differentiate us from our competitors and contribute towards the development of a
sustainable competitive edge. Our corporate strategy and guiding principles rest firmly on this belief.
18
Profile of the Company
A leading first generation
private sector Non-life
Insurance Company in
Bangladesh, Reliance
Insurance Limited (RIL)
was incorporated in 1988 as
a Public Limited Company
under the Companies Act,
1913 (Present 1994) and
subsequently was listed
with Dhaka and Chittagong
Stock Exchanges in 1995.
Reliance transacts all
classes of non-life insurance
business in Bangladesh
and its turnover was BDT
3,252.63 million, being
total gross premium
underwritten in 2022.
The Company carries its
insurance activities through
Head Office along with 32
(thirty two) branches spread
across the country.
Reliance Insurance Limited
Annual Report 2022
Reliance Insurance Limited received
“AAA (Triple A)” Surveillance Rating
(Stable outlook) from CRISL based on
its sound financial performance and
claim paying ability.
Reliance has an authorized capital of
Tk. 2,000 million and paid up capital
of Tk. 1,051.6 million in the year 2022.
Shares of the Company are traded
in both Dhaka Stock Exchange and
Chittagong Stock Exchange and are
listed in the “A” category. The company
has a total market capitalization of
approximately Tk. 6,141.4 million as at
December 31, 2022.
Reliance is focused on providing
professional services of the highest
quality to its clientele which include
many reputed large national and
multinational conglomerates. Over
the years, Reliance has established
its track record as a sound and
dependable insurer, consistently able
to meet its commitments and by
providing insurance solution to the
individual needs of its clients.
The Board of Directors of Reliance
comprises a good number of eminent
entrepreneurs and personalities of
the country. The management team
is headed by Mr. Md. Khaled Mamun
FCII (UK), who joined Reliance
Insurance in June, 2005 after 11 years
of service in Reinsurance Department
of the State Owned Sadharan Bima
Corporation. Apart from his Masters
degree from Dhaka University, he also
obtained Diploma in Development
Planning from Academy for Planning
and Development, Dhaka. He is an
Associate Member of Bangladesh
Insurance Academy, Dhaka and Fellow
Member of Chartered Insurance,
United Kingdom. He received
Advanced Non-Life Insurance &
Reinsurance Training from Swiss
Insurance Training Centre (SITC) of
Swiss Re, Zurich, Switzerland and
Reinsurance Management Training
from Asian Re, Bangkok, Thailand.
Financial performance of the
Company has been consistently
positive, delivering both underwriting
and investment income and by giving
attractive returns to its shareholders.
The Company has over the years
been maintaining strong corporate
culture, corporate governance,
ethical standards, corporate social
responsibilities, superior underwriting
skills and abilities and dynamic
investment management.
The future plans of Reliance
encompass not only development
of new products and services, but
also marketing activities aimed
at tapping the hitherto untapped
segments of the market. The
Company is fully aware of its social
responsibilities and would like to aim
its future developments activities in
the direction which bring insurance
services and benefits to the reach of
the common people of Bangladesh.

Company Information
The Company was
incorporated as a public
limited company in
Bangladesh in the year
1988 under the Companies
Act 1913 (at present 1994).
The Company within the
stipulations laid down
by Insurance Act 2010
and directives as received
from time to time from
Insurance Development
& Regulatory Authority
provides Non-life Insurance
services. The Company is
listed with Dhaka Stock
Exchange and Chittagong
Stock Exchange as a
Publicly Traded Company
under “A” category.
The Company carries its
insurance activities through
thirty two branches spread
across the country.
REGISTERED NAME OF THE
COMPANY
Reliance Insurance Limited
NATURE OF THE BUSINESS
Non-life insurance business
COMPANY REGISTRATION
NUMBER
CR-1/88
TAX IDENTIFICATION
NUMBER (TIN)
647975407445/LTU, Dhaka
BUSINESS IDENTIFICATION
NUMBER (BIN)
000000363-0006
NUMBER OF SHAREHOLDERS
as on December 31, 2022– 2,835,
as on Record date (March 06, 2023)
- 2,906
NUMBER OF SUBSIDIARY
COMPANIES UNDER RELIANCE
INSURANCE LIMITED
Nil
REGISTERED OFFICE
Shanta Western Tower (Level-5), 186
Bir Uttam Mir Shawkat Ali Shorak,
Tejgaon I/A, Dhaka-1208
CONTACTS
PABX : +88 02 8878836-44
+88 01321 202 220-23
Hotline : +88 01988 000 555
Fax : +88 02 8878831-4
E-mail : info@reliance.com.bd
WEB PRESENCE
www.reliance.com.bd
COMPANY SECRETARY
Mohammad Mamunur Rashid
19
AUDITORS
Zoha Zaman Kabir Rashid & Co.
Chartered Accountants
Rupayan Karim Towe, Level-7, 80
Kakrail, Dhaka-1000
CORPORATE GOVERNANCE
COMPLIANCE AUDITOR
Haque Fazlul & Co., Chartered
Accountants
21/A, Purana Paltan (5th Floor),
Dhaka - 1000
CREDIT RATING
AAA (Triple A: Highest Claims
Paying Ability) by CRISL
MEMBERSHIP (LOCAL)
Bangladesh Insurance Association
Bangladesh Insurance Academy
Bangladesh Association of Public
Listed Company
International Chamber of
Commerce-Bangladesh
Metropolitan Chamber of
Commerce & Industry-Dhaka
Bangladesh Employer Federation
Dhaka Chamber of Commerce and
Industry
MEMBERSHIP (FOREIGN)
Association of Insurers & Re-
insurers of Developing Countries
(AIRDC)
Insurance Congress of Developing
Countries (ICDC)
Federation of Afro-Asian Insurers
and Re-insurers (FAIR)
PRINCIPAL BANKERS
CORPORATE OBJECTIVES,
VALUES & STRUCTURE
Bank Asia Limited
BRAC Bank Limited
Standard Chartered Bank
Sonali Bank Limited
IFIC Bank Limited
20

Our Core Values

TRANSPARENCY INTEGRITY PROFESSIONALISM &

We encourage and inculcate
total transparency and
communicate openly
& honestly with all our
stakeholders and clients. We
accept our individual and team
responsibilities and we make
support business decisions
through experience and good
judgment.
We are committed to
employ the highest ethical
standards, demonstrating
honesty and fairness in all
our actions.
EXCELLENCE
We believe in developing
a highly motivated, valued
and diverse workforce.
We strive constantly to be
the best in quality and in
everything we do in order
to meet and exceed the
highest expectations of our
customers.

CUSTOMER FOCUS RESULT FOCUS TEAMWORK

We are dedicated to satisfying We are result focused. We We are committed to a

customer needs and honoring
commitments that we have
made to them. Our customers
are our partners and we
remain committed to build
strong relationship with them
and value their loyalty as our
best rewards.
strive to timely, tenaciously
and consistently execute
well developed plans, goals
and objectives and we
accept responsibility for the
results they deliver.
teamwork environment
where every individual is
a valued member, treated
with respect, encouraged to
contribute and recognized
and rewarded for his/her
efforts.

Ethical Principles
Faith, responsibility, ethics and respect are central
to Reliance Insurance’s core values and leadership
attributes. By being genuinely ethical in all matters
that we perform, Reliance insurance can attract
and retain the best employees and ensure its
position as the insurer of first choice in Bangladesh.
Operating in an ethical manner is essential to our
success.
The customers, regulators and other stakeholders all
rely on us to be transparent, prudent, accountable
and fair. We must therefore behave ethically in
communities where we operate in order to maintain
the confidence of our customers and other
stakeholders and ultimately to keep their business.
We can install this trust and confidence with every
business action and decision we make.

Reliance Insurance Limited

Annual Report 2022

Corporate Culture
In keeping with our Vision and Mission to “make a
positive difference” in the lives of our employees,
Reliance Insurance has cultivated a unique corporate
culture. In this culture, challenging work, open
communications both upwards and downwards,
accessibility to leadership including encouraging
bottom up rather than ‘top down’ approach, mutual
respect, trust, and concern for co-worker and
OFFICE BUILDING AMENITIES
Architecturally aesthetic and modern office
building situated at a prime location of the city
having convenient access to public transportation.
Parking facilities on a spacious lot.
Secured building with round the clock security
service.
Comfortable indoor dining facilities for employees.
PEOPLE MANAGEMENT PHILOSOPHY
Attract and partner with qualified employees
whose education, experience, and desire
to grow and success will contribute to the
accomplishment of Company goals.
Blend the experience and knowledge of flexible
long-term employees with the energy and
fresh perspectives of new employees from
other organizational experiences to create a
versatile workforce capable of responding to the
challenges and increasing demands of today’s
business environment.
Train and develop employees for current jobs,
future opportunities, and the continuing viability
of the organization through insurance education,
technical and management skills training,
educational assistance, promotion from within,
and strategic succession planning.
21
community well-being and development are melded
together to create a workplace with a family-like
feel which is productive, personally fulfilling, and
professionally satisfying.
The following amenities, policies, practices, benefits,
beliefs, and behaviors contribute to creating and
maintaining the Reliance corporate culture.
OTHER AMENITIES,
PERKS AND BENEFITS
Shuttle transport arrangement for most
of the employees.
Attractive car scheme proposal for
executive level employees give a new
dimension to boost up the morality of
employees.
Tuition assistance for approved,
job-related degree programs or
certifications.
Monthly update meetings among Head
of Division (HoD) brings more paces to
draw the finish line of all activities.
Annual salary increase considerations
and bonus eligibility at all levels.
Competitive employee benefits
program with hospitalization subsidy
and life insurance coverages.
Provident Fund contribution @ 10% by
Reliance for all regular employees.
Employees are entitled to get double
gratuity benefit if he/she completes
his/her ten years tenure.
Re-allocation packages for employees
who become displaced through
OBJECTIVES,
CORPORATEOBJECTIVES,
& STRUCTURE
reorganizations.
& STRUCTURE
A prevailing norm of considerate,
respectful, cooperative, and friendly
behavior among employees and
CORPORATE
VALUES
management.
VALUES
22

Our Products
ENGINEERING INSURANCE
Machinery Breakdown Insurance (MBD)
Deterioration of Stocks (DOS)
Boiler and Pressure Vessel (BPV)
Electronic Equipment Insurance (EEI)
Erection All Risks (EAR)
Contractor’s All Risks (CAR)
Oil & Gas Well Drilling Equipment Package (OGD)
Contractors Plant & Machinery (CPM)

MOTOR INSURANCE
Motor Insurance for Commercial Vechile
Motor Insurance for Private Vechile
Specialised Motor Vehicle

OVERSEAS MEDICLAIM
Business and Holiday (B&H)
Corporate Frequent Travels (CFT)
Employment and Study (E&S)

HEALTH INSURANCE

MISCELLANEOUS INSURANCE
Burglary Workmen’s Compensation
Money Insurance (for Banks) Employer’s Liability
Cash in Safe Marine Terminal Operators Liability (MTOL)
Cash in Transit Commercial General Liability
Cash on Counter Bankers Blanket Bond (BBB) Insurance
Cash in Premises Hotel Owner’s All Risks (HOAR)
Fidelity Guarantee Personal Accident Insurance
Product Liability Cyber Liability
Public Liability Aviation Insurance-Aircraft Hull
Directors & Officers Liability Insurance Sabotage & Terrorism
Corp Insurance

Reliance Insurance Limited

Annual Report 2022
 23

MARINE INSURANCE
Marine Cargo
Marine Hull
Builders Risks Insurance

PROPERTY INSURANCE
Fire Insurance (including Allied Perils)
Property Damage All Risks
Industrial All Risks (IAR) including
Business Interruption
Comprehensive Machinery Insurance

PRODUCT DIVERSIFICATION
AND INNOVATION
To stay competitive and remain profitable, it
is essential that we continuously innovate and
diversify our products. Keeping this is mind,
Reliance Insurance is continuously diversifying
and innovating product offerings. We, at Reliance,
are exploring new opportunities for product
diversification beyond our traditional class of
insurances such as Fire, Marine, Motor and
Miscellaneous. To this end, we have adapted
digitalization to keep up with the market
requirements and to gain new customers. This
enabled us to provide fast and efficient services to
our clients.
The potential untapped insurance market in
Bangladesh is the personal lines business. The
personal lines business remains weak due to
the people’s negative perception on insurance
industry and low penetration rate. To increase the
penetration rate for personal line business, Reliance
is selling these insurance products through digital
platform. Providing one stop insurance service and
facility to the customers will be a positive move for
us to generate sizable premium income from the
untapped market. In 2022, we launched our new
website with the option to purchase insurance
products online. Now, our customers can purchase
insurance policies from the comfort of their office
or home without the need to visit our office.
In addition to personal lines insurance products,
Reliance has recently introduced other insurance
products for our corporate clients, including Cyber
Insurance, Bankers Blanket Bond (BBB), Sabotage
& Terrorism and D&O Liability Insurance. We
CORPORATE OBJECTIVES,

also did a pilot crop insurance in 2022, covering

VALUES & STRUCTURE

potatoes for Rabi Season in Bogura, Rajshahi

and Cox’s Bazar region. We plan to expand crop
insurance in 2023 to include more farmers and
land area across Bangladesh.
By diversifying our product offerings and
continuously innovating, we will be able to stand
out from the competition and remain ahead of the
curve.
24

Our Business Model

Reliance Insurance Limited bases its business model around assumption and
diversification of risk. The essential insurance model involves pooling risk from
individual payers and redistributing it across a larger portfolio. We generate revenue by
charging premiums against insurance policy coverage, and then subsequently reinvesting
the premiums to “float” into other, interest-generating assets. Like all business models,
we try to evaluate market effectively and minimize administrative costs.

Unde
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ati

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Claim

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iu m li n g &
P ri c i n g

CLIENTS
em Po o

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es iu m Pr
en

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Gr

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ngs
kp
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e& In
Socie
Su ty
sta
ina
b i l i ty

CLIENTS
We place our clients at the heart of our business. With that in mind, we
provide several insurance products that can be a complete solution for
enterprise to enjoy a relative risk free corporate life. When it comes to client
satisfaction, we work to do more than just selling product to them because
we know, with great client satisfaction company gets new business and
potential referrals, which enhances the image of our Company. Needless to
say, happy clients are essential to business.

Reliance Insurance Limited

Annual Report 2022

PRICING AND ASSUMING RISK
Our revenue model starts with the pricing of risk
and the sale of an insurance policy. The insurance
policy’s benefit amount represents the indemnity
amount that we are willing to pay should a
specified loss occur.
Without good underwriting, the insurance
company would have to charge some customers
too much and others too little for assuming risk.
These likely prices out the least risky customers,
eventually causing rates to rise even further. This
is where insurance underwriting is critical and our
underwriter shows something special about their
efficiency by offering a great and competitive rate
abiding by insurance laws and regulations. And
thus pricing the risk effectively, we bring in more
revenue in premiums than it spends on conditional
payouts.
RISK POOLING AND PREMIUM
PRICING
Our willingness to accept a risk comes at a price
to the policy owner. This price is the premium
amount and is based on the common occurrence
of risk, as distributed among a large number of
people. This process is known as risk pooling and
is performed by underwriters of our company.
The risk pools determine the likelihood of a loss
occurring for a class and the price for that risk,
which becomes the premium rate.
MARKET
Brand
We have a successful brand marketing
strategy based on sound clients’
insights. Our business portfolio consists
of a good number of non-life insurance
policies designed to meet a broad array
of clients’ safety around the country
with the idea of delivering today and
investing for tomorrow.
25
NET PREMIUMS AND INTEREST
EARNINGS
When the premium is paid, we net out its
expenses associated with keeping the coverage
in force. This includes commissions paid to
agents and brokers of the company. It also
includes the administrative and operational costs
of the insurer such as overhead, salaries and
other business related expenses. The net amount
of the premium represents the revenue amount
that could hold onto the money in cash or place it
into a savings account, but that is not an efficient
task. At the very least, those savings are going to
be exposed to inflation risk. We find safe, short
as well as long-term assets to invest these funds.
This generates additional interest revenue for
the company while it waits for possible payouts.
Common instruments include FDRs, Debentures,
high-grade corporate bonds and interest-bearing
cash equivalents.
CLAIMS AND LOSS HANDLING
Our real strength lies in prompt settlement
of claim. When a customer files a claim, we
process it, check it for accuracy and submit
payment within shortest possible of time. This
adjusting process is necessary to filter out
fraudulent claims and minimize risk of loss to
the company.
Investment for Innovation
CORPORATE OBJECTIVES,
We make significant investments in
VALUES & STRUCTURE
human capital in terms of spending
resources on employee training at
home and abroad. Our MSD (Marketing
Service Department) develop new
products and services by incorporating
the feedback of clients to meet their
changing needs.
26

Products
We offer a wide range of non-life insurance products like:

HEALTH OVERSEAS MARINE

INSURANCE MEDICLAIM INSURANCE

PROPERTY MISCELLANEOUS ENGINEERING MOTOR

INSURANCE INSURANCE INSURANCE INSURANCE

WORKPLACE AND SOCIETY

Our Culture Our Contribution to the Society Leading Presence

In RIL, environmental development
are melded together to create a
workplace with a family-like feel which
is productive, personally fulfilling, and
professionally satisfying.
As part of the CSR initiatives, RIL endeavors
to make a positive social contribution
to BTH, Mastul Foundation, Society for
Health Promotion Links, Alokito Poth, Apon
Bhubon, -pioneer social organization- and
by supporting underprivileged children
and physically challenged people of the
society for their physical, mental and
educational improvement.
RIL holds top market position in
non-life insurance category as far
as profit earning is considered and
leading in depositing VAT and Tax in
Government exchequer amounting
Taka 377.50 mn and 407.40 mn
respectively for the year.

PEOPLE AND RELATIONSHIP

Our People Our Re-insurers Our Shareholders Our Stakeholders

We employ 314 people
on permanent basis. We
take great pride in saying
that RIL is the insurer of
first choice in Bangladesh.
Reliance has cultivated
a unique corporate
culture and in this culture,
challenging work, open
communications both
upwards and downwards,
mutual respect, trust,
concern for co-worker and
community well-being are
practiced with dignity and
respect.
RIL, in line with the existing
regulation, places its 50%
reinsurance coverage
with SBC while rest is
reinsured through several
internationally recognized
re-insurance companies i.e.
Scor Reinsurance Asia-
Pacific Pte. Limited
(Singapore), and Reinsurance
Company B.S.C (C) (Bahrain),
Labuan Reinsurance (L)
Limited (Malaysia), Peak
Reinsurance Company
Limited (Hong kong), Asian
Reinsurance Corporation
(Thailand), and General
Insurance Corporation (India).
RIL treats all its
shareholders with honor
and respects. In the
extreme volatile situation
and economic turmoil in
the past, RIL continued to
deliver for the shareholders
in terms of paying
dividend.
RIL tries to keep harmony
with all of its valuable
stakeholders. We keep
contributing to our
stakeholders sincerely.
In the last year, we
once again ensured
that our contribution to
Government exchequer is
very significant being the
leading VAT & Tax payer
in 2022 amounting Tk.
377.50 mn and 407.40 mn
respectively.

Reliance Insurance Limited

Annual Report 2022

Brief Profile
of the Directors
Mr. Rajiv Prasad Shaha
Chairman
Mr. Rajiv Prasad Shaha is the Managing Director
of Kumudini Welfare Trust of Bengal (BD) Ltd
and Kumudini Pharma Ltd since January 2000.
Mr. Shaha was the Director of Kumudini Welfare
Trust of Bengal (BD) Ltd and Kumudini Pharma
Ltd since 1987 till December 1999. Mr. Shaha
is a Sponsor Director and current Chairman of
Reliance Insurance Limited.
Mr. Shaha is the grandson of the great
philanthropist Rai Bahadur Ranada Prashad
Shaha (R. P. Shaha), the founder of Kumudini
Welfare Trust of Bengal (BD) Limited.
27
Mr. Shamsur Rahman
Vice-Chairman
Mr. Shamsur Rahman is the Director of
Bangladesh Lamps Limited (licensed
manufacturers of PHILIPS lighting products),
Transcom Electronics Limited, Mediastar
Limited (publishers of Prothom Alo), Mediaworld
Limited (publishers of The Daily Star), ABC Radio
(FM Radio Station), Marina Tea Co. Limited,
Monipur Tea Co. Limited and M. Rahman Tea
Co. Limited.
Mr. Rahman is also a Sponsor Director and
Current Vice-Chairman and member of the
Nomination and Remuneration Committee of
the Board of Reliance Insurance Limited.
CORPORATE OBJECTIVES,
VALUES & STRUCTURE
28
Ms. Zakia Rouf Chowdhury
Director
Ms. Zakia Rouf Chowdhury is the Director of
Rangs Limited, Rangs Motors Limited, Rangs
Properties Limited, Rangs Industries Limited,
Rangs Pharmaceuticals Limited, Rangs
Workshop Limited, Rancon Motors Limited,
Ranks ITT Limited, Ranks Telecom Limited,
Ranks Interior Limited, Ranks Real Estate
Limited, Shield Security Services Limited, Ranks
Steels Limited, Ranks Agro Biotech Limited,
Sash Limited, Zest Polymer Limited, Metro Foils
Limited, Sea Resources Group.
Ms. Chowdhury is a Sponsor Director of Reliance
Insurance Limited.
Reliance Insurance Limited
Annual Report 2022
Ms. Shahnaz Rahman
Director
Ms. Shahnaz Rahman is the Chairman and
Managing Director of Transcom Limited and
Chairman of all it’s Subsidiaries/Group of
Companies i.e. Ms. Rahman is also the Director of
Transcom Limited, Transcom Beverages Limited
(sole franchisee of PEPSI), Bangladesh Lamps
Limited (licensed manufacturers of PHILIPS
lighting products), Transcom Foods Limited
(sole franchisee of Pizza Hut & KFC), Transcom
Electronics Limited, Transcom Cables Limited
(manufacturers of domestic and industrial
cables), Transcom Mobile Limited, Eskayef
Bangladesh Limited, Transcom Distribution
Co. Limited, Bangaldesh Electrical Industries
Limited, Transcom Consumer Products Limited,
Trinco Limited, Transfin Trading Limited,
Mediastar Limited (publishers of Prothom Alo),
Tea Holdings Limited, Mediaworld Limited
(publishers of The Daily Star).
Ms. Rahman is a Sponsor Director of Reliance
Insurance Limited.
 29

Mr. Arshad Waliur Rahman Mr. Imran Faiz Rahman

Director Director

Mr. Arshad Waliur Rahman is a Director of Mr. Imran Faiz Rahman is a member of the Board
Transcom Limited, Transcom Beverages Limited of Directors and a member of Audit Committee
(sole franchisee of PEPSI), Transcom Foods of Reliance Insurance Limited. He has
Limited (sole franchisee of Pizza Hut & KFC), completed Bachelor of Business Administration
Transcom Electronics Limited, Bangladesh (BBA) from a reputed University of USA. He is
Lamps Limited (licensed manufacturers of the Chairman and Managing Director of Imaan
PHILIPS lighting products), Transcom Cables Cold Storage Limited and Managing Director of
Limited (manufacturers of domestic and Arlinks Limited. He is also the Director of R. R.
industrial cables), Transcom Mobile Limited Cold Storage Limited, Aris Holdings Limited, R
(distributor for SAMSUNG mobile handsets), R Estates Limited.
Eskayef Bangladesh Limited (leading
pharmaceutical Manufacturers – formerly
SmithKline & French), Transcom Distribution
Co. Limited (distributor of pharmaceutical – SK
& F, NOVO NORDISK, SERVIER, ALLERGAN and
consumer brands – Frito Lay, Heinz, Wrigley,
Mars, Energizer, Schick, L’Oreál, Garnier,
Ferrero, ConAgra Foods, Hemas), Transcom
Consumer Products Limited, Trinco Limited,
Transfin Trading Limited, Mediastar Limited
(publishers of PROTHOM ALO).

Mr. Rahman is a Sponsor Director and a member

of Nomination and Remuneration Committee of
CORPORATE OBJECTIVES,

the Board of Reliance Insurance Limited.

VALUES & STRUCTURE
30
Mr. Iftekharul Huq
Director
Mr. Huq obtained his graduation in Economics
from George Mason University in Virginia, USA.
After that he worked for Bangladesh Enterprise
Institute as a Research Assistant on the “Counter
Terrorism Policy” project. He did internships at
Grameenphone and Airtel.
Mr. Iftekharul Huq is a sponsor Director of
Reliance Insurance Limited.
Reliance Insurance Limited
Annual Report 2022
Ms. Samira Alam
Director
Ms. Samira Alam is the Chairman of General
Produce International Ltd. After obtaining
her BSc honors in Electrical and Electronic
Engineering and Master in Satellite and Radio
Communication from King’s College University
of London, she took a year training at Tyser &
Co, an Insurance and Reinsurance Broker and
an underwriting company for Lloyds Banks
Plc, UK. Later, she moved on to Investment
Banking and worked for several years at
Goldman Sachs and Nomura International. Ms.
Alam has a vast client base including Reuters,
Bloomberg, Lloyds Bank Plc, Berclays Bank,
Bank of America Merrill Lynch, European Space
Agency, London Stock Exchange, New York
Stock Exchange, Deuche Bank and BP Oil. She
is passionate about mathematics and spent the
last few years working as an adjunct lecturer
in applied and business mathematics at the
American University of Iraq, Suleymani. Ms.
Alam is currently completing her Certification
on Entrepreneurship and Sustainable Business
Strategy from Harvard Business School, USA.
Ms. Alam is a Director of Reliance Insurance
Limited.
 31

Ms. Srimati Shaha Ms. Sabra Yasmin Chowdhury

Director Director

Ms. Srimati Shaha, daughter-in-law of great Ms. Sabra Yasmin Chowdhury is the Director
philanthropist Rai Bahadur Ranada Prasad of Rangs Workshop Ltd. Ms. Chowdhury is also
Shaha (R P Shaha), obtained her Bachelor of the Director of the Sea Resources Group of
Arts degree from University of Dhaka. She is the Companies consisting of 3 export oriented Deep
Director of Kumudini Welfare Trust of Bengal Sea Fishing Companies & 4 other Companies.
(BD) Ltd., Kumudini Pharma Ltd., Bengal River Rangs Workshop Ltd nominated Ms. Sabra
Service (BD) Ltd. and member of Ranada Prasad Yasmin Chowdhury as Director in the Board of
Shaha University Trustee Board, Bharateswari Directors of Reliance Insurance Limited.
Homes Governing Body, Kumudini Nursing
School & College. She started her campaign
to uplift the empowerment of underprivileged
women of our country from the very beginning
of her married life and recognition of her
contribution towards education and women
empowerment received National award
“Begum Rokeya Padak – 2005” of the Govt. of
Bangladesh in 2006.

Ms. Shaha is also a member of Board of Directors

of Reliance Insurance Limited.
CORPORATE OBJECTIVES,
VALUES & STRUCTURE
32

Ms. Shahzreh Huq Ms. Amiran Hossain

Director Director

Ms. Shahzreh Huq is a Member of Board of
Directors of Eskayef Pharmaceuticals Limited
(leading pharmaceutical manufacturers -
formerly SmithKline & French), Transcom
Consumer Products Limited (first ever
PepsiCo Foods Franchisee in the world),
Transcom Distribution Co. Ltd. (distribution
of pharmaceuticals - SK+F, NOVO NORDISK,
SERVIER, ALLERGAN and consumer brands
- Frito Lay, Heinz, Mars, Energizer, Schick,
L’Oreal, Garnier, Abbott Nutrition and ConAgra),
Transcom Beverages Limited, Bangladesh
Lamps Limited (manufacturers of lighting
products), Bangladesh Electrical Industries
Limited (manufacturers of SAMSUNG and
TRANSTEC TVs), Transcom Foods Limited
(sole franchisee of Pizza Hut & KFC), Transcom
Electronics Limited (distribution of SAMSUNG,
WHIRLPOOL, DAIKIN, HITACHI, PANASONIC,
PHILIPS and TRANSTEC household appliances),
Mediastar Limited (Publishers of PROTHOM
ALO, country’s largest circulated Bengali
Newspaper), Ayna Broadcasting Corporation
Limited (FM Radio Station) and Tea Holdings
Limited.
Ms. Amiran Hossain was appointed as Director
of Reliance Insurance Limited on July 24, 2017
nominated by Deep Sea Fishers Limited. After
completion of her A-levels from Mastermind
School, Dhaka, she enrolled at Bachelor of
Science (Economics) at the State University
of New York, USA. Beside academia, she
involved herself with community and social
organizations. She worked with Senator Mr.
Ruben Diaz for the New York State Democratic
Conference, Albany, New York in 2014. Ms.
Hossain is an active member of Albany Stock
Exchange Club and Albany Business Leaders
Emerge, New York. She has keen interest on
Golf, Swimming, Tango, Guitar and Piano.

Ms. Huq is also a Director of Reliance Insurance

Limited.

Reliance Insurance Limited

Annual Report 2022

Mr. Abdullah Al Mamun FCA
Director
Mr. Abdullah Al Mamun is a business professional
with more than 15 years of experience in multiple
industries. He is now serving as the Director-
Corporate Finance of Transcom Limited, one of
the Largest & Professionally Managed Diversified
Business Conglomerates in Bangladesh.
Mr. Mamun holds the position of Director-Corporate
Finance of Transcom Distribution Ltd, Bangladesh’s
largest distribution and logistics company with
operations in pharmaceuticals, consumer brands
and diagnostic devices. Transcom Distribution
is proud to have strong bonds with multinational
giants, L’Oréal, Novo Nordisk, Servier, Abbott, Kraft
Heinz, Unilever International and Mars among others.
Mr. Mamun is also the Director-Corporate Finance
of Transcom Consumer Products Ltd, PepsiCo’s
first snacks franchise operation in the world.
Prior to joining Transcom family in 2007, he served
A. Qasem & Co, Chartered Accountants, an
associated firm of PricewaterhouseCoopers (PwC)
for 2 years.
He serves as the Member of the Executive
Committee and Treasurer of the Faraaz Hossain
Foundation.
Mr. Mamun is a Fellow Chartered Accountant of
Institute of Chartered Accountants of Bangladesh
(ICAB) and holds a Masters in Commerce degree.
He also served as a faculty member of ICAB from
2006 to 2014.
33
Mr. Anis-uz-Zaman Khan
Independent Director
Mr. Anis-uz-Zaman Khan was appointed to
the Board of Directors of Reliance Insurance
Limited on 9th September 2021 as Independent
Director of the Company. Before taking
voluntary retirement from the Government of
the Peoples’ Republic of Bangladesh, he served
as Secretary in the Ministry of Information and
Rural Development & Co-operative. He was
also a Director of GEC (BD) Ltd. and Managing
Director of Social Marketing Company Ltd. He
was also the ombudsperson for BRAC for a term
of three years. He has visited many countries
including USA in 1977 on invitation from the
US Government under the Leader Exchange
Program. Mr. Khan completed his Master of Arts
degree from University of Dhaka and obtained
his Post Graduate Diploma in Development
Administration from University of Leeds, United
Kingdom.
Mr. Khan is the Chairman of the Nomination
and Remuneration Committee of the Board of
Reliance Insurance Limited.
CORPORATE OBJECTIVES,
VALUES & STRUCTURE
34
Mr. Azizur Rashid FCA
Independent Director
Mr. Azizur Rashid, Chartered Accountant by
profession, holds extensive experience of working
both in public practice and industry in UK. Upon
return to Bangladesh in 1989 he joined the finance
function of BOC Bangladesh Limited, a British
multinational company (listed). He spent 22 years
in BOC and out of which 14 years as Country Head
of Finance and Company Secretary. After BOC,
Mr. Rashid served as CFO with Summit Group,
a well known local group with speciality in the
energy sector. Immediately before joining Link 3
Technologies Limited (in February 2015, where he
served till February 2020), a leading broad band
company in Bangladesh, he was working as Financial
Management Consultant with World Bank, Dhaka
and subsequently with Hoda Vasi Chowdhury & Co,
Chartered Accountants. For a number of terms Mr.
Rashid served as member of Trade, Tariff & Taxation
Sub-Committee of Foreign Investors Chamber
of Commerce & Industry, Bangladesh and also of
Metropolitan Chamber of Commerce & Industry,
Bangladesh. Earlier, he received membership of
British Institute of Management.
Mr. Rashid is an Independent Director and Chairman
of the Audit Committee of the Board of Reliance
Insurance Limited.
Reliance Insurance Limited
Annual Report 2022
Mr. Md. Habibur Rahman Mollah FCA
Independent Director
Mr. Habibur Rahman Mollah, a fellow member
(FCA) of the Institute of Chartered Accountants
of Bangladesh was appointed as Independent
Director of the Board of Reliance Insurance
Limited on July 28, 2021. He completed his
graduation and post-graduation degree in
Accounting from the Dhaka University and
qualified himself as a Chartered Accountant
from the Institution of Chartered Accountants
of Bangladesh. He carries over 38 years of
experience of serving the key positions in the
areas of corporate and financial management
in various capacities including Chief Operating
Officer, Executive Director, Chief Financial
Officer etc. with multi-disciplinary business
organizations like Transcom Group, Crown
Cement Group, Rahimafrooz Group, Meghna
Group of Industries and Bangladesh Rural
Electrification Board. Mr. Md. Habibur Rahman
Mollah was Director of the Board of IDLC Finance
Limited for about 7 years from 2006 to 2013.
Mr. Mollah is also a member of the Audit
Committee of the Board of Reliance Insurance
Limited.

Professor Mohammad Abdullah
Independent Director
Professor Mohammad Abdullah is a literary
person who engages himself from founding,
teaching and managing educational institutions
ranging from Elementary to University Level. For
a decade he was part-time Faculty Member at
Departments of Management and Finance of
Dhaka University. He completed B. Com. (Hons.)
and M. Com. from Dhaka University in 1958 and
1959 respectively. He became a fellow of the
Chartered Institute of Secretaries, London, UK
in 1966. He was Company Secretary of Titas
Gas Transmission and Distribution Company
Limited and Sponsor Director of Islami Bank
Bangladesh Limited. Since 1991 to 2001 he was
an Honorable Member of Parliament of Peoples
Republic of Bangladesh. Mr. Abdullah is the
Chairman of the Manarat Trust and the board of
trustees of Manarat International University.
Mr. Abdullah is an Independent Director of
Reliance insurance Limited.
35
Mr. Md. Khaled Mamun FCII (UK)
Chief Executive Officer
Mr. Mamun joined Reliance Insurance in June,
2005 after 11 years of service in Reinsurance
Department of the state owned Sadharan Bima
Corporation. Apart from his Masters degree
from Dhaka University, he also obtained Diploma
in Development Planning from Academy for
Planning and Development, Dhaka.
Professionally he is an Associate Member of
Bangladesh Insurance Academy, Dhaka and also
the Fellow Member of the Chartered Insurance
Institute, United Kingdom. He received
Advanced Non-Life Insurance & Reinsurance
Training from Swiss Insurance Training Centre
(SITC) of Swiss Re, Zurich, Switzerland and
Reinsurance Management Training from Asian
Re, Bangkok, Thailand. He has also attended
a number of seminars on Insurance and
Reinsurance at home and abroad. Recently
Chartered Insurance Institute of London has
awarded Mr. Khaled with the prestigious
“Chartered Insurer” status.
CORPORATE OBJECTIVES,
VALUES & STRUCTURE
36

Chairmen, Deputy Chairmen & CEOs

from the Beginning of the Company
Chairmen

Late Latifur Rahman Late Joya Pati Ms. Rokia Afzal Rahman Late Azimur Rahman Late A. S. Mahmud
1988, 1989, 1997, 2005 1994 2006 1990, 1998 1995

Ms. Shahnaz Rahman Late A. Rouf Chowdhury Mr. Shamsur Rahman Ms. Zakia Rouf Chowdhury Ms. Yasmeen Khan
2001, 2009, 2013, 2016, 1991, 2002, 2010 1996, 2004, 2012, 2018 2015, 2020 2000
2019, 2021

The Company recalls

with gratitude their
contribution

Late Asadul Huq Mr. Habibullah Khan Mr. Rajiv Prasad Shaha
1992, 1999, 2007 1993, 2008, 2014 2003, 2011, 2017, 2022

Deputy Chairmen Managing Director & CEOs

Late M. Shamsul Alam Late Anwarul Huq Late M. Shamsul Alam Mr. Akhtar Ahmed Mr. Md. Khaled Mamun
March 2005 - March 2006 March 2005 - March 2008 March 1988 - March 2005 March 2005 - March 2014 March 2014 to Date

Reliance Insurance Limited

Annual Report 2022
 37

Composition of
Board and its Committees
CHAIRMAN INDEPENDENT DIRECTOR

Mr. Rajiv Prasad Shaha Mr. Azizur Rashid FCA

Nominated by Kumudini Welfare Trust of Bengal (BD) Mr. Md. Habibur Rahman Mollah FCA
Limited Mr. Anis-uz-Zaman Khan
Professor Mohammad Abdullah

VICE-CHAIRMAN
CHIEF EXECUTIVE OFFICER
Mr. Shamsur Rahman
Representing Self Shareholding
Mr. Md. Khaled Mamun FCII (UK)

DIRECTOR AUDIT COMMITTEE

Ms. Zakia Rouf Chowdhury CHAIRMAN

Nominated by Rangs Limited Mr. Azizur Rashid FCA
Ms. Shahnaz Rahman MEMBER
Nominated by Trinco Limited Mr. Md. Habibur Rahman Mollah FCA
Ms. Samira Alam Mr. Imran Faiz Rahman
Nominated by General Produce International Limited
Mr. Arshad Waliur Rahman
Nominated by Transfin Trading Limited FINANCE & ASSET MANAGEMENT COMMITTEE
Mr. Imran Faiz Rahman
Nominated by Arlinks Limited CHAIRMAN
Ms. Shahnaz Rahman
Mr. Iftekharul Huq
Nominated by FinAccord Trading Limited MEMBER
Mr. Iftekharul Huq
Mr. Sabra Yesmin Chowdhury Mr. Md. Khaled Mamun
Nominated by Rangs Workshop Limited
Mr. Abdullah Al Mamun FCA
Nominated by Transcom Electronics Limited
NOMINATION AND REMUNERATION COMMITTEE
Ms. Amiran Hossain
Nominated by Deep Sea Fishers Limited CHAIRMAN
Ms. Shahzreh Huq Mr. Anis-uz-Zaman Khan
Nominated by Transcom Limited MEMBER
Ms. Srimati Shaha Mr. Shamsur Rahman
Nominated by Kumudini Handicraft Mr. Arshad Waliur Rahman
CORPORATE OBJECTIVES,
VALUES & STRUCTURE
38
Senior Management Team
Mr. Akhtar Ahmed
M.A. ACII (UK), Chartered Insurer
Chief consultant
After completing B.A. (Honours) and M.A. from
Dhaka University in 1970, Mr. Ahmed joined
Eastern Federal Union Insurance Company,
the largest insurance company in the then
Pakistan, as an Executive Officer. Following
the nationalization of insurance industry in
Bangladesh in 1972, his services were absorbed
in Sadharan Bima Corporation.
In 1981 he joined Asian Reinsurance Corporation,
Bangkok, an inter-governmental organization
set up by the United Nations and served in
various Managerial position till 1989. In 1989
he joined Arab Insurance Group, the largest
insurance organization of the Middle East and
served for 14 years in various positions as Chief
Manager, Regional General Manager and Chief
Executive of its Far East operations, based in
Hong Kong and Kuala Lumpur.
Mr. Ahmed returned home in 2003 and served
as Managing Director of Sadharan Bima
Corporation till February 2004. In early 2005
he completed an assignment as Consultant to
KPMG, Abu Dhabi, on a project for setting up
of a large Reinsurance company in the Middle
East. He joined Reliance Insurance Limited as
its Managing Director & CEO in March 2005
and continued till March 2014 before becoming
Adviser of the Company.
Reliance Insurance Limited
Annual Report 2022
Mr. Md. Khaled Mamun
M.Sc, M. Demo, DDP, ABIA, FCII (UK), Chartered Insurer
Chief Executive Officer
Mr. Mamun joined Reliance Insurance in June,
2005 after 11 years of service in Reinsurance
Department of the state owned Sadharan Bima
Corporation. Apart from his Masters degree
from Dhaka University, he also obtained Diploma
in Development Planning from Academy for
Planning and Development, Dhaka.
Professionally he is an Associate Member of
Bangladesh Insurance Academy, Dhaka and also
the Fellow Member of the Chartered Insurance
Institute, United Kingdom. He received
Advanced Non-Life Insurance & Reinsurance
Training from Swiss Insurance Training Centre
(SITC) of Swiss Re, Zurich, Switzerland and
Reinsurance Management Training from Asian
Re, Bangkok, Thailand. He has also attended
a number of seminars on Insurance and
Reinsurance at home and abroad. Recently
Chartered Insurance Institute of London has
awarded Mr. Khaled with the prestigious
“Chartered Insurer” status.

Mrs. Rashida Banu
BA (Hons), MSS, ACII (UK), Chartered Insurer
Deputy Managing Director
Mrs. Rashida Banu has joined Reliance Insurance
Ltd as Deputy Managing Director in July 2021.
Prior to her joining she worked in Bangladesh
General Insurance Co. Ltd (BGIC) in different
capacities since the inception of that company.
Mrs. Rashida obtained Master’s degree from
University of Dhaka and later on she completed
DMII from Malaysian Insurance Institute (MII)
and ACII from the Chartered Insurance Institute
(CII), London. She is a Chartered insurer of CII,
U.K. and a Sr. Associate CIP of ANZIf, Australia.
She obtained Advanced & Basic Training courses
on Non-Life insurance from Swiss Insurance
Training Centre (SITC), Zurich, Switzerland.
Mrs. Rashida attended many seminars &
workshops in U.K., Malaysia, Maldives, Thailand
& Sri-Lanka. She is an examiner of Bangladesh
Insurance Academy and was a part time lecturer
of several institutes in Bangladesh
39
Mr. Badal Chandra Rajbangshi
B.com (Hons), M.com, FCS, FCA
Chief Financial Officer
Mr. Rajbangshi joined Reliance Insurance Limited
in May, 2021 after 17 years of service in Finance
& Accounts, Internal Audit & Compliance, Board
Secretariat and Corporate Management of non-
life Insurance Companies having foundation in
the United Insurance Company Limited with
over 11-year service experience in it. Before
joining non-life insurance sector Mr. Rajbangshi
was the Finance Coordinator of Canadian
Resource Team (CRT) a Canadian Executive
Agency of CIDA for around 6 years. Apart from
his Masters degree with Honors in Accounting
from the University of Dhaka, he also obtained
Articleship from KPMG Rahman Rahman Huq,
Chartered Accountants.
Professionally he is a Fellow Member of
the Institute of Chartered Accountants of
Bangladesh (ICAB) and also a Fellow Member
of the Institute of Chartered Secretaries of
Bangladesh (ICSB). He experienced various
training courses, workshops and seminars
CORPORATE OBJECTIVES,
VALUES & STRUCTURE
at home and abroad and showed brilliant
performance in diverse areas of Insurance under
different capacities. Mr. Rajbangshi is a Member
of different Standing & other Committees of
ICAB and he is also a regular faculty of ICSB and
ICAB.
40

Management Team
Md. Israfil
AMD & Head of Branch Coordination and Development

After successfully passing a long period of 32

years of his dedicated services to the company, Mr.
Israfil is now the Head of Branch Co-ordination &
Development. During his service life at Reliance, he
has participated in various seminars and workshop
at home and aboard. He has completed his Honours
and Masters in Mathematics from the University of
Chittagong.

Md. Golam Sarower

AMD & Head of Internal Audit and Compliance

Mr. Sarower is now holding the position of Head of

Internal Audit & Compliance Division. Prior taking this
responsibility, he worked for Finance & Accounts Division
in various vital positions including In-charge of the
Accounts & Finance. After completing CA course from A.
Qasem & Co. Chartered Accountants, Mr. Sarower started
his Insurance career with Reliance Insurance Limited in
1989 as an Accounts Officer and working here for the
last 35 years. Apart from his Masters in Accounting he
has completed CA (Inter). Mr. Sarower attended various
training & seminars both at home & aboard.

Mohammad Golam Kibria

AMD & Head of HR and Administration

Mr. Kibria has obtained MBA degree with major in HRM

from IBA, University of Dhaka. In a career spanning over 13
years, he worked in the field of Human Resources, Training
and Administration in differentiated industries. Prior to
joining Reliance Insurance Ltd. in 2016, he served in TNT
Express Bangladesh, ACI Limited and La Belle Fashion
& Apparels Ltd in various capacities. He is a seasoned
Human Resources professional with expertise of working
in diversified areas like Performance Management, Process
Optimization, OD, Training and general HR.

Reliance Insurance Limited

Annual Report 2022
 41

Md. Masud Rana

SEVP, Finance & Accounts

Mr. Rana Joined Reliance Insurance Limited in 2011.

Before joining Reliance he served in Bashundhara
Group, Keya Group, Opex Shina Group, JM Fabrics,
JM Industries for about 21 years at different mid level
management positions. Mr. Rana has obtained MBA
in Finance from University of Dhaka and completed
Masters degree in Management from National
University and also studying at Institute of Cost and
Management of Bangladesh (partly completed).

Md. Nazrul Islam

SEVP, HR and Administration

Mr. Md Nazrul Islam joined in Reliance Insurance Limited on

15th August, 2006 in the capacity of Vice President in HR &
Admn Division. Before joining Reliance Insurance Limited
he worked with PRAN-RFL Group in the position of Manager,
Human Resource Management. Mr. Islam obtained his Masters
with Honors in Management from University of Dhaka. He also
completed PGD in Personnel Management from Bangladesh
Institute of Management (BIM). Mr. Islam has attended a number
of seminars & training programs on Management Development
Initiatives, Labour Laws, Strategic HRM and General
Administration & Services etc in country & abroad.

Syed Qayem Hussain

SEVP & Head of Spz. u/w, Marketing Service and Health Plan

Syed Qayem Hussain joined Reliance Insurance Limited in

2011 and presently discharging his responsibility as Head
of Spz. U/W, Marketing Service and Health Plan. He has 18
years of experience work in the insurance industry. He has
attended various training programs on Health Insurance,
Liability Insurance and other programs on insurance in
CORPORATE OBJECTIVES,
VALUES & STRUCTURE

Bangladesh and abroad.

He has completed BBA from California State University,

USA. He has qualified Certificate in Insurance (Marketing)
from the Chartered Insurance Institute of UK.
42

Md. Mahbubur Rahman

EVP & Head of IT

Mr. Rahman joined Reliance Insurance Limited in

1990. He has completed the professional courses
like COBOL programming, ECITS, Certified Novell
Administrator (CNA), Oracle Certified Professional
(OCP) in both track Developer & Database
Administrator. He is working in IT track over twenty
five years and has been given charge of the IT Division
in 2005.

Sanjay Kumar Basak

EVP, Finance & Accounts

Mr. Basak has obtained his Masters with Honours in

Accounting from Department of Accounting & Information
System, University of Dhaka and also completed MBA
majoring Finance from a reputed private university. He
joined Reliance in 1995 as officer and currently discharging
his responsibility as Chief of Finance & Investment.
Mr. Basak has attended a number of training courses,
workshops and seminars relating to Insurance, Risk
Management, AML & CFT etc.

Md. Abdul Matin

EVP, Policy Issuing

Mr. Matin started his career with Reliance Insurance

Limited in 1993. With over 29 years’ experience in Reliance,
he is currently holding the position of Chief of the
Department of Policy Issuing. He completed his Masters
with Honours in Economics from Rajshahi University
and attended a number of training courses at home and
abroad.

Reliance Insurance Limited

Annual Report 2022
 43

Ashiqur Rahman
EVP, Claims

Mr. Rahman joined Reliance Insurance in November 2009. He stared

his career with United Insurance Company Limited and served for
12 years at different mid level management positions. Mr. Rahman
obtained his Masters in Marketing and MBA with Management
major from the University of Dhaka. Thereafter he obtained his Post
Graduate Diploma in Personnel Management from Bangladesh
Institute of Management, Dhaka. He also qualified Certificate in
Insurance (Claims) from the Chartered Insurance Institute of UK. In his
long career of 20 years, Mr. Rahman attended a number of training
courses in insurance at home and abroad including advanced training
in Reinsurance Management from Asian Re, Bangkok, Thailand.

Md. Zahurul Haque

SVP, Share

Mr. Haque completed his Masters with Honours in Soil Science

from University of Dhaka. With the vast experience of 29 years
in Reliance Insurance Ltd. Mr. Haque is now holding the position
of Chief of the Department of Shares. He attended a number of
training courses, workshops and seminars at home.

Mohammad Mamunur Rashid

SVP & Company Secretary

Mr. Rashid joined Reliance in 2014 as Deputy Vice

President. Before joining Reliance Mr. Rashid served in
various organizations at mid level management positions.
Mr. Rashid obtained his MBA with Marketing major from
London School of Commerce, London, UK. At present he
is perusing Chartered Secretary Certification from ICSB
CORPORATE OBJECTIVES,

(Institute of Chartered Secretaries of Bangladesh).

VALUES & STRUCTURE

Mr. Rashid attended various professional seminars at home

and abroad.
44
Geographical Presence of Reliance
DHAKA
LOCAL OFFICE
Mr. Md. Khairuddin Chowdhury, SEVP
Rahmans’ Regnum Centre (4th floor), 191
Tejgaon I/A, Dhaka-1208
Phone: +880 (2) 8879293-95
Mobile: +880 1713- 379806
email: hob_lo@reliance.com.bd
NARAYANGONJ
Mr. Sanjoy Kumar Saha, In-charge
Padmo City Plaza-2 (1st Floor), Space #
05, 55/D, S. M. Maleh Road, Ward # 15,
Tanbazar, Narayanganj
Phone: +880 (2) 224431962
Mobile: +880 1847-214711
email: hob_ngj@reliance.com.bd
VIP ROAD
Mr. AKM Mahbub Uzzaman, SVP
Trident Tower (8th floor), 57 Purana Paltan
Line, Dhaka -1000
Phone: +880 (2) 222224021, Mobile: +880
1716-618370
email: hob_krl@reliance-bd.com
BIJOYNAGAR
A. K. M. Shafayet Ullah, SVP
Akram Tower (6th floor)
15/5, Bijoynagar, Dhaka-1000
Phone: +880 (2) 222221832, Mobile:+880
1646-489155
email: hob_bjn@reliance.com.bd
MADARIPUR
Mr. Tota Miah Sikder, DVP
Amin Super Market, Main Road,
Madaripur- 7900
Phone: +880 (2) 478811510
Mobile: +880 1713-014856
email: hob_mrd@reliance-bd.com
CHATTOGRAM
AGRABAD
Ms. Meharoon Hyder, EVP
Aziz court (5th Floor)
88-90 Agrabad C/A, Chattogram-4100
Phone: +880 (2) 333311319, 333312221
Mobile: +880 1713-276429
email: hob_agb@reliance-bd.com
KHATUNGONJ
Mr. S.M. Omar, SEVP
304, Khatungonj, Chattogram-4100
Phone : +880 (2) 333360243, 333355105
Mobile: +880 1713-106641
email: hob_ktj@reliance.com.bd
Reliance Insurance Limited
Annual Report 2022
KAWRAN BAZAR
Ms. Shahana Yasmin, SVP
Rupayan Trade Center (3rd floor), 114
Kazi Nazrul Islam Avenue, Bangla Motor,
Dhaka-1215
Phone: +880 (2) 41031840-1
Mobile: +880 1755-550218
email: hob_kbz@reliance.com.bd
NEW MARKET
Mr. Md. Nurul Amin, EVP
Star Palace Tower (7th Fl.), 66-67 Elephant
Road Dhaka-1205
Phone: +880 (2) 223369449, Mobile :
+880 1713-440981
email: hob_nmk@reliance.com.bd
UTTARA
Mr. Musleh Uddin Chowdhury, EVP
H.M. Plaza (8th floor), Plot No. 34, Road
No-2, Sec-3, Uttara, Dhaka -1230
Phone: +880 (2) 48956076
Mobile: +880 1755-638293
email: hob_utr@reliance.com.bd
BANGSHAL
Mr. Mynul Haque Mizi, SVP
Ashraf Mansion (2nd floor), 42, Shahid
Nazrul Islam Sarani
Bangshal, Dhaka-1100.
Phone: +880 (2) 223386225, Mobile: +880
1713-425953
email: mynul@reliance-bd.com
NARSHINGDI
Mr. Md. Ibrahim, AVP
C & B Road, Narshingdi-1600,
Phone: +880 (2) 9462677
Mobile: +880 1674-085892
email: hob_nsd@reliance-bd.com
JUBILEE ROAD
Mr. Reaz Ahmed Siddiqui, SVP
175, Jubilee Road, Chattogram-4000
Phone: +880 (2) 333351766, 333366506
Mobile : +880 1713-100891
email: hob_jrb@reliance.com.bd
COX’S BAZAR
Mr. Md. Nurul Anwar, DVP
1065, Bazar Ghata Main Road
Cox’s Bazar-4700
Phone: +880 (341) 64892
Mobile: +880 1713-440989
email: hob_cox@reliance-bd.com
MOTIJHEEL
Mr. Hara Krishna Roy, AMD
Rahman Chamber (2nd floor), 12-13,
Motijheel C/A, Dhaka-1000
Phone: +880 (2) 223387827
Mobile: +880 01755-638299
email: hob_mtj@reliance.com.bd
MOHAKHALI
Mr. Khan Md. Tofail, EVP
M.H.B. Bhaban (2nd floor), 94, Mohakhali
C/A, Dhaka-1212
Phone: +880 (2) 222286872
Mobile : +880 1713-185581
email: hob_mhk@reliance.com.bd
MOGHBAZAR
Mr. Shafiqul Islam, EVP
Dom-Inno Benvenito (4th Floor), 217,
217A Outer Circular Road, Moghbazar,
Dhaka-1217
Phone: +880 (2) 48312798
Mobile: +880 1755-550215
email: hob_mgb@reliance.com.bd
FARIDPUR
Mr. Kamal Das, VP
89/A, Mujib Sarak, Alipur, Faridpur-7800
Phone: +880 (2) 478804118
Mobile: +880 1313-430852
email: hob_frd@reliance-bd.com
CUMILLA
Mr. Md. Nurul Haque, VP
69/61, Nazrul Avenue (3rd floor)
2nd Kandirpar, Cumilla-3500
Phone: +880 (2) 334405917
Mobile: +880 1713-440974
email: hob_com@reliance-bd.com

RAJSHAHI
RAJSHAHI
Mr. Kazi Abdul Bari, VP
178, Kumarpara (3rd floor), Shahebbazar,
Rajshahi-6100
Phone: +880 (721) 773364
Mobile: +880 1713-209667
email: hob_raj@reliance-bd.com
SIRAJGONJ
Mr. Md. Shariful Islam, Sr. Manager
Alam Plaza, S.S. Road, Sirajgonj-6700
Phone: +880 (2) 588831362
Mobile: +880 1730-351425
email: hob_srj@reliance-bd.com
RANGPUR
RANGPUR
Station Road, Rangpur-5400
Phone: +8802589966046
Mobile: +880 1713-440996
email: hob_rng@reliance-bd.com
KHULNA
KHULNA
Mr. Mohammad Abdus Sabur, VP
141, Sir Iqbal Road, Khulna-9000
Phone: +880 (2) 477725475
Mobile : +880 1730-033001
email: hob_kln@reliance-bd.com
NOAPARA
Mr. S. M. Rafiqul Alam, Manager
Rahim Tower (2nd floor)
Station Bazar, Noarapa, Jashore
Mobile: +880 1713-440988
email: hob_npr@reliance-bd.com
MYMENSINGH
MYMENSINGH
Mr. Md. Halimuzzaman, DVP
19, G. K. M. C. Saha Raod, (2nd floor)
Chotto Bazar, Mymensingh.
Phone: +880 (2) 996668432
Mobile: +880 1713-440995
email: hob_myn@reliance-bd.com
DIVISION-WISE NUMBER OF BRANCHES
Dhaka Chattogram
14 5 4
45
PABNA BOGURA
Mr. Md. Ashraful Alam Mamun, AVP Mr. Md. Mahbub Alam, SVP
Akteruzzaman Tower (5th Floor) Chowdhury Mansion, Kazi Nazrul Islam
840, A. Hamid Road, Pabna Sarak, Borogola, Bogura-5800
Phone: +880 (2) 588846073 Phone: +880 (2) 589905385
Mobile: +880 1713-440958 Mobile: +880 1713-440994
email: hob_pbn@reliance-bd.com email: hob_bog@reliance-bd.com
DINAJPUR THAKURGAON
Charu Babur More, Khettri Para Mr. Md. Soyef Ali, DVP
Dinajpur-5200 S.M. Ali Road, Thakurgaon-5100
Phone: +880 (2) 589923308 Phone: +880 (2) 589932323
Mobile: +880 1711-593727 Mobile : +880 1713-440997
email: hob_din@reliance-bd.com email: hob_thk@reliance-bd.com
KUSHTIA JASHORE
Mr. Sk. A.H.M. Arefin, Manager Mr. Md. Monirul Islam, VP
Lovely Tower, 55/1, N.S. Road 7, Garikhana Road, Jashore-7400
Kushtia 7000 Phone: +880 (2) 477760079
Phone: +880 (2) 477783891 Mobile: +880 1713-440986
Mobile: +880 1713-400508 email: jes_harun@reliance-bd.com
email: hob_kus@reliance-bd.com
SYLHET
SYLHET
Mr. Md. Rubel Miah, Manager
Karimullah Market (5th floor)
Bandar Bazar, Sylhet-3100
Phone: +880 (2) 996636067
Mobile: +880 1737-185666
email: hob_syl@reliance-bd.com
CORPORATE OBJECTIVES,
VALUES & STRUCTURE
Rajshahi Rangpur Khulna Mymensingh Sylhet
3 4 1 1
46
Top Branch Business Activists
Hara Krishna Roy
Assistant Managing Director & Head
of Branch - Motijheel
Mr. Roy has joined Reliance
Insurance Limited in September
9, 1989. He has obtained bachelor
of Science and Masters of Science
from University of Dhaka in the
year 1985 & 1986. He attended the
marketing motivation course from
BIA. He is currently discharging his
responsibility as Head of Motijheel
Branch.
S M Omar
Senior Executive Vice President &
Head of Branch - Khatungonj
Mr. Omar joined Reliance Insurance
in the year 1988. He kept his
footsteps in various departments
like Underwriting & Accounts. He is
completed Master’s from Chittagong
University. He also attended long
Professional Courses from BIA and
NIA (India). He has been serving
as Head of Branch, Khatungonj,
Chattogram since 2000.
Reliance Insurance Limited
Annual Report 2022
Ataur Rahman
Assistant Managing Director -
Local Office
Mr. Rahman joined Reliance
insurance in the year-2022, he
worked 37 years for Green Delta
Insurance Company Limited and
service in various departments, He
attended various seminar as well
as received training on rules of
insurance, re-insurance and claim at
home and aboard.
Khairuddin Chowdhury
Senior Executive Vice president &
Head of Branch - Local Office
Mr. Chowdhury prior to joining
Reliance Insurance Limited in
2021, he served 22 years in various
departments of the Green Delta
Insurance Company Limited,
He attended various number of
seminars as well as training on
insurance, re-insurance and claims
at home and aboard. He is presently
working as Head of Local office,
Dhaka.
Md. Shamim Khan
Assistant Managing Director -
VIP Road Branch
Mr. Khan joined Reliance Insurance
Limited in 2021 as Assistant
Managing Director. Before joining
Reliance he worked as Senior
Executive Director for 10 years
from 2012 to 2021 in Green Delta
Insurance Company Limited. He also
served Rupali Insurance Co. Ltd. at
different upper mid level Marketing
position, lastly as Deputy Managing
Director. Mr. Khan began his career
with Karnaphuli Insurance Co. Ltd.
as officer in 1986.
Khan Md Tofail
Executive Vice President & Head of
Branch - Mohakhali
Mr. Tofail prior to joining as Head
of Mohakhali Branch of Reliance
Insurance Limited, he surfed in
various departments of RIL like,
Internal Audit, Branch Control,
Underwriting and Re-insurance.
He has completed BIA insurance
diploma.

Shafiqul Islam
Executive Vice President & Head of
Branch - Moghbazar
Mr. Islam joined Reliance Insurance
Limited in 2012. He has started
his insurance career with United
Insurance Company Limited and
served for 14 years at mid-level
marketing services. Mr. Islam
completed his post-graduation from
Dhaka City College. He attended a
number of training courses at BIA.
Musleh Uddin Chowdhury
Executive Vice President & Head of
Branch - Uttara
Mr. Chowdhury joined Reliance
Insurance Limited in November,
2012. Prior to joining Reliance
Insurance, he served for 24 years
in various positions of Pragati
Insurance Limited. Mr. Chowdhury
completed his B.S.S. (Hon’s) and
M.S.S. (Department of Public
Administration) form Chittagong
University.
47
Md. Nurul Amin Meharoon Hyder
Executive Vice President & Head of Executive Vice President & Head of
Branch - New Market Branch - Agrabad
Mr. Amin joined Reliance in 1988 as Mrs. Hyder joined Reliance
Development Officer and currently Insurance Limited in the year 1989.
discharging his responsibility as Currently she is holding the position
Head of New Market Branch. He of Executive Vice President & Head
obtained his Masters with Honours of Branch, Agrabad, Chattogram.
in Bachelor of Social Science from She has attended a training program
University of Jagannath. He has in General Insurance Organized
attended a number of training by National Insurance Academy
courses at home and abroad. (NIA) Pune, India in 2012 and also
attended various training programs
in Bangladesh.
Shahana Yasmin
Senior Vice President &
Head of Branch - Kawranbazar
Ms. Shahana joined Reliance
Insurance Limited in 1995 as an
CORPORATE OBJECTIVES,
Accounts Officer. She has obtained
VALUES & STRUCTURE
her Masters with Honours in
Accounting from Department of
Accounting & Information System,
University of Dhaka. She attended
a number of training courses and
seminar relating to Insurance and
Financial Management.
 48

Corporate
Organogram

Nomination
& Remuneration
Committee

Chief Chief Executive Financial Asset

Consultant Officer Mgt Committee

Audit
Committee

Company
Secretary
Internal Audit
& Compliance
Share DMD

Operation Underwriting Marketing Finance & Human Resource Information

& Re-Insurance Accounts & Administration Technology

Claim Specialized New Product Finance Human Software

U/W & Service Resource

Re-Ins Branch Accounts Administration Hardware

Co-ord & Dev

Policy Health
Issuing Plan & Mkt Service

All
Branches

Reliance Insurance Limited

Annual Report 2022
 49

Review of Chairman, CEO

and Directors’ Report

REVIEW OF CHAIRMAN, CEO

AND DIRECTORS’ REPORT
50

Reliance Insurance Limited

Annual Report 2022
 51

Review of the Chairman

Inspite of the hurdles, Reliance Insurance Limited was able
to sustain their positive trend of growth in business, with the
unwavering dedication of the staff members. In 2022, Reliance
earned a gross premium income of Tk 3,523.63 million,
registering a growth of 12.21% compared to the previous year. The
net premium income was Tk 1,274.24 million, which is a 10.91%
increase over the previous year, mainly due to our Fire and
Marine insurance business.

Rajiv Prasad Shaha

Chairman

DEAR SHAREHOLDERS, There was also an increase of 7.08% in underwriting

Ladies and gentlemen,
It is with great pleasure I welcome you all to the 35th Annual
General Meeting (AGM) of Reliance Insurance Limited.
Thank you for joining us today. I hope that you and your family
members are all safe and keeping well. It is my pleasure to
place before you the Financial Statements of 2022 of the
company along with its performance. I would like to start
with a brief overview of the performance and strategy of our
company. In 2022 Reliance Insurance Limited stepped into
the 35th year of the Company’s business operation with its
commitment to maintaining superior corporate governance
and balancing of growth, profitability, and risk.
BANGLADESH ECONOMY AND RELIANCE BUSINESS
During the year under review, the overall economy was not
favorable for the business. Due to post-Covid worldwide
recession and Ukraine-Russia war, Bangladesh had to face
huge crises in foreign exchange mainly due to shortage
of inward remittance and desired export and continuation
of payment against foreign commitment, maintenance of
USD quota for individual travelers and import of essential
goods and raw materials to factory. However, the central
bank drastically controlled the outgo of USD limiting
letters of credit in the second half of the year which heavily
disrupted the normal marine cargo insurance business in
the insurance sector of Bangladesh.
profit to Tk. 615.20 million as against Tk. 574.52 million in
2021, investment income increased slightly to Tk. 321.97
million from Tk. 318.96 million in 2021 due to smaller
increase in interest rate in the fourth quarter of the year
and also a slight increase in cash dividend, even NBFIs
are capped to 15% cash dividend by Bangladesh Bank.
The pre-tax and post-tax profit was Tk. 882.68 million
and Tk. 615.93 million respectively, showing increase of
5.48% and of 4.78% respectively over the preceding year.
APPROPRIATION OF PROFIT
Reliance Insurance Limited has been maintaining a good
track record in payment of its dividend. From divisible
profits of 2022, we recommended 25% cash dividend
amounting to Tk. 262.90 million for declaration in the AGM
by the honourable shareholders and also transfer of Tk.
100.00 million to General Reserve to secure steady dividend
payment in future. The paid-up capital of the company has
reached Tk. 1,051.61 million, the highest among non-life
insurance companies in Bangladesh.
INSURANCE BUSINESS IN RURAL OR SOCIAL SECTOR
The Insurance Act 2010 requires non-life insurance services
to be dispersed to the rural as well as to the social sector.
Reliance Insurance Limited has been providing insurance
coverage to the insured by underwriting small and medium
REVIEW OF CHAIRMAN, CEO
AND DIRECTORS’ REPORT

enterprise (SME) business through its branch network at

Inspite of the hurdles, Reliance Insurance Limited was able
to sustain their positive trend of growth in business, with
the unwavering dedication of the staff members. In 2022,
Reliance earned a gross premium income of Tk 3,523.63
million, registering a growth of 12.21% compared to the
previous year. The net premium income was Tk 1,274.24
million, which is a 10.91% increase over the previous year,
mainly due to our Fire and Marine insurance business.
the remote areas of the country. As part of social welfare
commitment, the Company also covers a good number of
insured in the health insurance sector irrespective of the
claim ratio. You also know that in most of the cases this
small sector remains unprofitable. In the year under review,
we earned a premium of Tk. 27.43 million and settled claims
for Tk. 23.14 million in health insurance sector.
52
IDRA RELATED ISSUES
In the mid of the year under review, Insurance Development
and Regulatory Authority (IDRA) got its new Chairman
Mr. Mohammad Jainul Bari, a former Secretary to the
Government of Bangladesh. A couple of new members for
both life and non-life, also joined to complete the Authority
in full numbers. Reliance Insurance Limited congratulated
the new Chairman and the new members and wished that
IDRA with its full team would be more effervescent with
the dynamic leadership of the reconstituted Authority to
increase the contribution towards the GDP from insurance
sector.
Conceived in prudent underwriting, Reliance Insurance
Limited follows all applicable Rules, Regulations and Orders
of IDRA meticulously. Reliance has been sending information
about policies to the Unified Messaging Platform (UMP)
regularly at the end of every day’s business.
CENTRAL RATING COMMITTEE (CRC)
The Central Rating Committee (CRC) headed by the
new Chairman, IDRA, has been continuing its updating
of the required tariff for different classes of non-life
insurance including new products that arrive recently at
the continuous development of science and technology
and also in the changing market situation from time to
time. The Company is always thankful to the Authority for
taking positive measures with a view to removing unhealthy
practices from insurance market.
CAPITAL MARKET STABILIZATION FUND (CMSF)
With a view to making the securities market lively in the
interest of the general investors, the BSEC constituted the
Capital Market Stabilization Fund (CMSF) with the unclaimed
or undistributed or unsettled cash or stock dividend or non-
refunded public subscription money or un-allotted rights
shares from the issuer of listed securities lying with them
for more than three years. Reliance Insurance Limited,
being a listed issuer, has transferred the required amount of
unclaimed dividend to the said Fund in compliance with the
rules of the Fund.
RESEARCH AND DEVELOPMENT
With the constraints of insurance database, it is indeed a
very tough job to launch new non-life insurance products.
Reliance, with its professional and expert underwriters, has
been working on it, particularly for development of personal
lines business. It is actively pursuing unconventional lines
of businesses such as liability, Bankers Blanket Bonds (BBB)
and Extended Warranty Insurance. Through our R&D work
we have developed crop insurance in the micro insurance
level in the context of the tough weather environment of
Bangladesh due to global warming like drought, sudden
and prolonged flood, tornados and unusual frequent
cyclones etc.
HUMAN CAPITAL
Reliance Insurance Limited has always emphasized on
professionalism and relied on the dynamism instilled
through our highly qualified personnel, who have rendered
dedicated services over the years and moved the company
Reliance Insurance Limited
Annual Report 2022
forward to reach its current position. Therefore, fostering
suitable human resources remains one of our key priorities
in order to be able to serve customers better and establish
competitive edge over our peer competitors. The Company
ensures the congenial atmosphere for all its members of
the staff both at Head Office and Branches with adequate
compensations which eventually limit the employee
turnover.
FUTURE OUTLOOK
It is apparent that the economic condition would not go well
in Bangladesh like the world economy at large in the year
2023. The International Monetary Fund (IMF) has lowered
the projection of gross domestic products growth for
Bangladesh to 6% for the first half year of 2023. The inflation
rate is higher than it was expected. Recent declaration of
the price hike of both electricity and gas for the industries
would impact further on inflation. The essential commodity
prices have already gone up beyond the earning capacity
of general people to expense for services like insurance in
Bangladesh. The ongoing dollar shortage in the banking
sector is posing a threat to local textile millers and spinners
as they have difficulties in opening letter of credit to import
raw materials and cotton to feed the country’s readymade
garment industry. However, we do believe that Bangladesh
will definitely be able to tide over the difficulties posed by the
ensuing crisis. Reliance Insurance Limited with its prudent
insurance services, will remain committed to overcome
any challenges of the future and to be in momentum for
prudential business growth in 2023.
CONCLUSION
We always remember with sincere gratitude our clients
and shareholders for their tremendous support and trust
reposed on us. We would extend our sincere thanks to Banks
and financial institutions with whom we have extensive
daily dealings; along with the Regulators, Dhaka Stock
Exchange Ltd, Chittagong Stock Exchange Ltd, BAPLC,
NBR, FRC, BSEC, IDRA, Sadharan Bima Corporation, related
Government bodies and stakeholders for their persistent
co-operation and support.
I would like to extend my wholehearted thanks to the
honourable members of the Board for their continuous
co-operation and valuable advices to administer the affairs
of the company smoothly and also to the different Sub-
Committees of the Board for performing their defined roles.
On behalf of the Board of Directors, I would like to take
the opportunity to express our sincere thanks to the Chief
Consultant, the Chief Executive Officer and members of the
staff of the company for their commendable performance
in adhering to company’s vision. I am very much confident
and hopeful that they will continue to be steadfast in the
face of adversity and achieve better results in the years to
come.
Rajiv Prasad Shaha
Chairman
 53

REVIEW OF CHAIRMAN, CEO

AND DIRECTORS’ REPORT
54

Reliance Insurance Limited

Annual Report 2022
 55

Review of the
Chief Executive Officer
Despite the slowdown of economic activities in the post covid scenario and war-
stricken world, I strived for maintaining the status quo adhering to our core
competencies i.e. focusing customers, ethical practices and above all professionalism.
At the time of peer pressure, I derived inspiration from Arnold Schwarzenegger, the
world’s renowned athlete, who once said that the meaning of life is not simply to exist,
to survive, but to move ahead, to go up, to achieve, to conquer.

Md. Khaled Mamun FCII (UK)

Chief Executive Officer

Dear Ladies and Gentlemen,
Another successful but rushing year is 2022 amid stiff
pressure from the market dynamics whether it be financial
or regulatory on the face of hard reinsurance market
worldwide due to major catastrophic losses in the North
American region.
Despite the slowdown of economic activities in the
post covid scenario and war-stricken world, I strived
for maintaining the status quo adhering to our core
competencies i.e. focusing customers, ethical practices
and above all professionalism. At the time of peer pressure,
I derived inspiration from Arnold Schwarzenegger, the
world’s renowned athlete, who once said that the meaning
of life is not simply to exist, to survive, but to move ahead, to
go up, to achieve, to conquer.
Staying hooked to the KPIs as a professional insurer was
challenging as well. However; we closed our book of
business with a steady growth rate of 12.21%, of course,
without any major CAT event.
Gross Premium
2,689.26 3,004.16 2,937.12 3,140.35 3,523.63
The generation of gross premium income of BDT 3,523
million with an upward trend in the underwriting profit has
been a milestone considering the changing circumstances
in the business environment. Fire portfolio being the
premier, our marine hull portfolio experiences a growth rate
of 33%. Our path throughout the year was scarcely smooth
mainly because of strong external forces such as US dollar
austerity practices of the central bank, compliance to the
regulatory reforms and limited foreign direct investment.
ON OUR TRACK TO SUCCESS WE WILL BE CROSSING
MANY RIVERS
Our obstinate faith being on professionalism and ethics, my
colleagues have been relentless to outperform yet another
year despite challenges in our non-life market segment,
which is, you know, mature but pretty saturated considering
the market size.
We put emphasis on prudent underwriting, choosy
investment instruments, optimisation of reinsurance, and
human capitalisation to reap the fruits of the prospects.
Thus, our gross premium income is expected to increase
over the next three years facilitated by penetration into
the new line of business, particularly of liability and
miscellaneous products.

THE KEY POINTS FROM THE GLOBAL INSURANCE

REVIEW OF CHAIRMAN, CEO

MARKET
AND DIRECTORS’ REPORT

For the year 2022 Swiss Re estimated strong 6.1% nominal

growth in total premiums (non-life and life) attaining the $7
trillion global target. However, these times are difficult for
the insurance companies, so they will need to stay abreast
of tackling inflation and utilizing economic growth. The
insurance industry faces pressure from high inflation this
2018 2019 2020 2021 2022
56

year, but higher interest rates will be a silver lining from 2023, awareness about the socio-economic role of insurance and
reports Swiss Re. Insurers are increasingly dependent on thus for improving insurance penetration rate in the country
emerging technologies and data sources to drive efficiency, for sustainable development of the sector.
enhance cybersecurity, and expand capabilities across the
HUMAN CAPITALIZATION – ONE OF THE TOP MOST
organization, according to Deloitte.com
PRIORITY
FINANCIAL INDICATORS Being financial service providers, we invest in human capital
development in addition to our investment in information
Indicators 2022 2021 Movement Trend technology. Our philosophy is that ICT investment can
provide us advantages for a certain period of time, and it
Gross premium 3,523.63 3,140.35 12.21%
can easily be imitated. But it is human capital development,
Net premium 1,274.24 1,148.87 10.19% which provides us with real competitive advantages over
the years.
Profit before tax 882.68 836.86 5.48%
Thus, we arrange congenial environment to our staff
Profit after tax 615.93 587.81 4.78% members for ensuring self-motivation in discharging
responsibilities in most professional manner. In addition to
Underwriting profit 615.20 574.52 7.08% offering internal training at our training institute we engage
our employees’ training offered by local and international
Investment income 321.97 318.96 1.00% training institutes. We arranged ‘In-house Zoom-Based
Training Courses every 04 months for revisiting our
PLACING OPERATIONAL RISKS MANAGEMENT INTO practices for better performance.
PRACTICES

As always in 2022 we have actively taken into accounts of
different operational risks because we firmly acknowledge
that our business is subject to operational risks such as
direct or indirect loss resulting from human error, failure of
internal and external system since we are involved in a large
number of complex transactions with clients, brokers and
reinsurers.
Therefore; we pay due heed to the risk improvement
practices, and employ a range of risk mitigation strategies
based on evaluation and monitoring on an ongoing basis, of
course in accordance with our stated risk appetite.
CORPORATE SOCIAL RESPONSIBILITY AT RELIANCE
During the Covid-19 pandemic, we financially contributed in
the improvement of lives. We also recognize our corporate
social responsibility (CSR) in the nation-building activities. In
this connection we are also working for promoting the public
Medical consultant for in-house treatment
In addition to maintaining a higher level of hygienic working
environment during the pandemic, we understand that
healthy employee is happy employee. In order to keep our
employees healthy, we have employed an in-house Medical
Consultant who sits at our Head Office on a weekly basis,
and provide free consultation. Furthermore; for ensuring
peace of mind of our employees, we offer Health Insurance
Policy, Hospitalization Policy and Employee Welfare facilities
for our employees and their family members.
Nation-building through contribution to national
exchequer
Reliance has consecutively been becoming the highest tax
payer among the non-life insurance companies. We make
significant contribution to the Government Treasury each
year. In the 2022, we paid BDT 785.25 million to the national
exchequer as Tax, VAT, Stamp duty etc.

Contribution to the National Exchequer and to the Economy BDT in Million

394 395 414 503 494 530 569 597 749 684 788 785

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Reliance Insurance Limited

Annual Report 2022

TOWARDS SELF-REGULATION FROM LOCAL
REGULATORY FRAMEWORKS
Compliance to regulations introduced by “Insurance
Development and Regulatory Authority (IDRA)” is our
top priority. It is our strength, which facilitates good
corporate governance, and adequate service levels, brining
sustainability. We also abide by the regulatory changes
made by Bangladesh Banks, and Bangladesh Securities
and Exchange Commission. We believe that adherence to
business ethics and compliant to regulations would pay us
in the long run to this edge, we have committed towards
self-regulation, which is the heart of a compliant company.
DIGITIZATION AT THE CORE OF OUR OPERATION
Digital marketing in insurance is the process of engaging
with the prospects to create awareness and drive action.
It is a fluid and ever-changing field as new technologies
continue to emerge, so it is important for those in the
insurance industry to stay up-to-date on how consumers
are responding to these changes.
The focusing on the digital technologies is no more an option
for our insurers, it’s a survival issue. For achieving enhanced
insurance penetration rate in Bangladesh, Reliance has put
its best efforts in making use of digital blessing and proudly
contributed to the making of ‘Digital Bangladesh’.
PROMPT SETTLEMENT OF VALID CLAIMS
Ensuring customers services, particularly at the time of
claims settlement, Reliance aims at becoming the forerunner
since claims is the only event when the customers are at
distress and they need mental and financial supports, and
in such situation, insurers should be standing beside the
customers. We embed this into our practices.
57
SIMPLE PURCHASE OPTIONS FOR CUSTOMERS
We believe that reaching out customers is the key to new
account acquisition. We have placed an on-going process
to introduce new products to have growth potentials by
penetrating new segment of the market with superior
services. A cardinal principle of insurance is to diversify
and achieve spread so that insurer is not reliant on limited
classes of business. Developing new products means a
combination of, or variation to, existing insurance products
that results in a material change to the risk profile/nature
of the existing products. We make sure that the potential
customers are educated of the products and simple
purchase options are in place.
CLOSING LINES
At this point I would like to sincerely thank and convey my
deepest gratefulness to our Board of Directors who guide me
by sharing their thoughts as well as insights. In the coming
days we would excel in making sure of the customer’s
satisfaction and yields for our valued shareholders.
As a proud member of Reliance Family, let sing the song of
professionalism and ethical business practices.
Thanking you,
Md. Khaled Mamun FCII (UK)
Chartered Insurer &
Chief Executive Officer
REVIEW OF CHAIRMAN, CEO
AND DIRECTORS’ REPORT
58
Directors’ Report
to the Shareholders
As per section 184 of the Companies Act 1994 and corporate governance Code as adopted on 3rd June 2018 of Bangladesh
Securities and Exchange Commission (BSEC)
Dear Shareholders, Ladies and Gentlemen,
The Directors of the company have great pleasure in
presenting 35th Annual Report along with the Audited
Financial Statements and the Auditors’ Report thereon for
the year ended December 31, 2022 for your kind perusal and
approval.
We begin with a brief review of the Global economy,
Bangladesh economy and take note of the situation prevailing
in the insurance sector of the country, followed by a review of
the performance of the Company for the year 2022.
GLOBAL ECONOMY
The world economy, as envisaged by Swiss Re in its Sigma
6/2022, has been facing a complex situation owing to
the war in Ukraine, zero-Covid policy in China, energy
shortages in Europe, protectionism in the United States,
and skyrocketing debt burden in developing countries.
The new wave of Covid-19 in North-East Asia, particularly
in China, Japan, South Korea, Taiwan, and Russia, is also a
great concern for the world economy.
A new, higher interest rate era is emerging from the
economic stresses of the inflation shock and war in Ukraine.
Though economic growth has been relatively resilient this
year, global GDP is expected to grow by just 1.7% in real
terms in 2023 as inflationary recessions approach major
economies such as the US and Europe.
It is continued to view inflation as the number one macro
risk, and it is expected to stay sticky, even if inflation declines
rapidly next year. It brings downside risks to growth from
higher central bank interest rates. In advanced markets it is
forecasted that real GDP growth of just 0.4% in 2023, the
lowest since the 1980s outside of the global financial and
COVID-19 crises. In emerging markets, it is anticipated that
substantially lower growth rates than pre-pandemic that will
likely feel similar to downturn.
East Asia’s growth forecasts are revised down to 2.9% in
2022—due to the mobility restrictions in the People’s Republic
of China plus deep contraction in Hong Kong, China—and
down to 4.0% in 2023. The 2022 forecast for Southeast
Asia is upgraded from 5.1% to 5.5% on robust consumption
and tourism recovery in Malaysia, the Philippines, Thailand,
and Vietnam. The 2023 forecast is revised down to 4.7%
as global demand weakens. The South Asian forecast for
2022 is maintained at 6.5% but revised down marginally for
2023 from 6.5% to 6.3% following flooding in Pakistan and a
slowdown in Bangladesh.
Reliance Insurance Limited
Annual Report 2022
GLOBAL INSURANCE PERSPECTIVE
According to Swiss Re Institute report sigma No. 4/2022, for
insurers, the main inflation impact will show in rising claims
costs, more in non-life than life insurance in which policy
benefits are defined at inception. Motor and liability lines of
business will likely be most immediately impacted. Accident,
and motor and general liability will also be impacted, with
inflation feeding into bodily injury claims.
Swiss Re estimates strong 6.1% nominal growth in total
premiums (non-life and life) in 2022. Nevertheless, in
nominal terms we expect total premiums volumes will
exceed the USD 7 trillion mark for the first time ever this year.
Swiss Re bases its estimation on strong market recovery
from pandemic-induced lows, continued rate hardening in
non-life, and stronger premium growth in emerging markets
in particular.
For non-life insurance, Swiss Re expects inflation of
exposure values and rate hardening will boost global
premium growth. Commercial lines (including workers’
compensation) will continue to expand more than personal
lines (including health). It estimates a 1.1% increase in
commercial premiums in 2022, and a 3.1% gain in 2023,
supported by rate hardening. Personal lines insurance
premiums will expand by an estimated 0.5% in 2022, mainly
on account of stagnation in advanced markets.
BANGLADESH PERSPECTIVE
According to IMF Bangladesh’s robust economic recovery
from the COVID-19 pandemic was interrupted by Russia’s
war in Ukraine. Rising global commodity prices, supply
disruptions, and slowdown in external demand have
led to a sharp widening of the current account deficit,
depreciation of the Taka, and the rapid decline of foreign
exchange reserves. The resulting high inflation, slow
growth, and stringent measures to compress demand are
disproportionately impacting the poor. Heightened global
uncertainties will keep the balance of payments (BoP) under
pressure for some time.
As per Bangladesh Bank (BB) review, the domestic price
level is likely to ease in the near future due to the recent
declining global price level trend in almost all commodities,
weathered by better yields of Aman and Boro paddies in the
next two seasons. The exchange rate pressure is expected
to be normalized within the next few months, supported by
the necessary policy measures taken by Government and
BB to curb the excessive import demand while enhancing
the export receipts and inward remittances.
 59

Bangladesh non-life insurance industry continues to operate
as one of the smallest to operate as one of the smallest in
the world (holding 60th position in the world ranking). As per
Swiss Re Sigma 4/2022, the rate of insurance penetration
has increased to 0.5% from 0.4% (Life 0.4% and non-life
0.1%). The non-life insurance sector where of 45 private
insurers and 1 state-owned corporation, earned around Tk.
42,497 million premium in 2021.
INSURANCE DEVELOPMENT & REGULATORY
AUTHORITY (IDRA)
The Insurance Industry started reforming repealing the
age-old Insurance Act, 1938 and replacing it by Insurance
Development and Regulatory Authority Act, 2010 and
Insurance Act, 2010. The related reforms have yet to be
completed formulating the required regulations as quick
as possible to apply the provisions of Insurance Act,
2010 smoothly. In the mid of the year 2022, Insurance
Development and Regulatory Authority (IDRA), got Mr.
Mohammad Jainul Bari, an ex-Secretary to the Government
of Bangladesh as its new Chairman. Two new members
from the insurance sector, one from life and the other from
non-life, also joined the Authority. The Board of Directors of
the company congratulated the new Chairman and the new
members and extend greetings to the existing members
and wished that IDRA with its reconstituted full team would
be more vibrant to increase the penetration to the GDP from
insurance sector.

Now let me introduce you to the various performances, company profile and the overall activities of the company:

During the year 2022,

attained Gross Premium
income was Taka 3,523.63
million as against Taka
3,140.35 million in 2021 – an
increase of 12.21% and
attained Net Premium
income was Taka 1,274.24
million as against Taka
1,148.9 million in 2021 – an
increase of 10.92%.
Underwriting profit stood
at Taka 615.2 million as
against Taka 574.5 million
in 2021 – an increase
of 7.1%. The increase in
underwriting profit is due
to increase in Net Premium
income.
Total assets stood at Taka
11,605.59 million as against
Taka 11,082.88 million in
2021, an increase of 4.7%.;
Fixed assets stood at
Taka 2,849.6 million from
Taka 2,769.9 million in 2021
(increased by 2.9%),
Investments stood at Taka
2,875.43 million from
3,172.67 million in 2021
(decreased by 9.37%) and
Cash and cash equivalents
stood at Taka 3,932.64
million from Taka 3,483.42
million in 2021 (increased by
12.9%).

Investment income was
Taka 321.97 million as
against Taka 318.96 million
in 2021 – an increase of
0.94%.
Profit before tax stood
at Taka 882.68 million
as against Taka 836.86
million in 2021, an
increase of 5.5%.
Profit after tax
amounted to Taka 615.93
million as against Taka
587.81 million in 2021, an
increase of 4.8%.
Some important
statistics relating to the
performance of the
company in the year 2022
are shown at page - 65.

PRODUCT WISE PERFORMANCE OF THE COMPANY

Pictorial presentation on product-wise performance of the company along with comparable information from the earlier years
are presented below:

PREMIUM DEVELOPMENT - GROSS & NET BDT in Million

2,689.3 1,312.5 3,004.2 1,324.7 2,937.1 1,062.5 3,140.3 1,148.9 3,523.6 1,274.2
REVIEW OF CHAIRMAN, CEO
AND DIRECTORS’ REPORT

2018 2019 2020 2021 2022

Gross Premium Net Premium
60

MARINE INSURANCE BUSINESS

Gross Portfolio Net Portfolio
Class The Company has underwritten gross premium of Tk. 955.26
2022 2021 2022 2021 million from marine insurance business including Tk. 253.25
million from marine hull business. Net premium from marine
Fire 1,937.45 1742.33 450.26 406.4 insurance business was Tk. 532.55 million against Tk. 460.61
million in 2021. The Company earned an underwriting profit
M. Cargo 702.01 654.70 461.54 423.8 of Tk. 281.37 million against Tk. 295.92 million in 2021.

M. Hull 253.25 189.67 71.01 36.8 MOTOR AND MISCELLANEOUS INSURANCE

BUSINESS
Motor 138.61 152.18 135.24 148.7
In motor insurance business gross premium has decreased
to Tk. 138.61 million from Tk. 152.18 million in 2021. Motor
Misc. 492.31 401.46 156.19 133.5
business was lower due to making motor third party
Total 3,523.63 3,140.35 1,274.24 1,148.9 liability insurance non-obligatory for motor vehicles by
the Bangladesh Road Transport Authority (BRTA). Net
premium from Motor segment was Tk. 135.24 million
FIRE INSURANCE BUSINESS
in 2022. Underwriting of premium from Miscellaneous
Reliance Insurance Limited has underwritten gross premium segment increased to Tk. 492.31 million in 2022 from Tk.
of Tk. 1,937.45 million against Tk. 1,742.33 million in 2021. The 401.46 million in the previous year. Net premium from this
net premium was Tk. 450.26 million in 2022. The Company segment was Tk. 156.19 against Tk. 133.53 million in 2021.
earned Tk. 173.90 million as underwriting profit from this The underwriting profit in miscellaneous segment was Tk.
class against Tk. 181.64 million in 2021. 81.95 million in 2022.

Class of Business Growth 2022 vs 2021 BDT in Million Source of Business 2022 BDT in Million
1742.33
1937.45

401.46
253.25
702.01

492.31
189.67

138.61
152.17
33.52

22.63
654.7
11.20

-8.91

96.1 - 3%
7.23

PSB 416.4 - 12%

Multinational

649.3 - 18%
Sundry

953.4 - 27% 1,408.4 - 40%

In-House Local Corporate

Fire M.Cargo M.Hull Motor Misc

2021 2022 +/- % Total Increase: 383.3m

BREAKDOWN OF PREMIUM INCOME BDT in million

2022 2021
Growth % 2022
Particular
over 2021
Amount Breakdown % Amount Breakdown %

In-house 416.38 11.82 389.3 12.4 6.96

Multinational 1,408.40 39.97 1254.1 39.9 12.30

Local corporate 953.36 27.06 838.3 26.7 13.73

Sundry 649.35 18.43 561.3 17.9 15.69

PSB 96.15 2.73 97.4 3.1 -1.28

Total 3,523.63 100 3,140.40 100 12.20

Reliance Insurance Limited

Annual Report 2022
 61

Assets 2022 BDT in Million Investment Income 2022 BDT in Million

12.3
2,875.4 4%
2,849.6 30% Others
29% Share &
Fixed assets Debentures 80.1
and other
25%
Dividend

229.6
71%
Interest
3,932.5
41%
Cash at Bank

INCOME FROM INVESTMENT monitors those risks continuously and takes appropriate
measures in dealing with risks of high magnitude.
Investment income increased to Tk. 321.97 million from Tk.
318.96 million in 2021. Where, interest income was Tk. 229.62
RISK MANAGEMENT
million in 2022 against Tk. 223.77 million in 2021. This was
the result of slightly increased of interest rates by Bank and Risk management ensures an integrated, pre-emptive
NBFIs. The dividend income increased to Tk. 80.10 million in approach to managing current and emerging threat. As
2022 against Tk. 75.64 in 2021. Reliance Insurance deals with accepting huge risks of the
insured, we manage those risks through proper reinsurance
arrangement with renowned and well rated reinsurance
FINANCIAL RESULTS 2022 BDT in Million
companies in the different corners of the world. The major
882.68 reinsurers of the company are: A. Local: Sadharan Bima
849.76
770.48
836.86
Corporation; B. Abroad: (i) Scor Reinsurance Asia-Pacific
694.43
Pte. Limited, Singapore; (ii) Labuan Reinsurance Limited,
Malaysia; (iii) Peak Reinsurance Company Ltd, Hong Kong;
615.93
585.42
548.18
587.81 (iv) Abu Dhabi National Insurance Company, UAE; (v) Saudi
615.20
498.13
574.52 Reinsurance Company, KSA; (vi) GIC, India; (vii) American
535.97
470.98
Insurance Group (AIG), USA; (viii) Alianz Global Corporate
416.01
& Specialty, Germany; (ix) Factory Mutual Insurance
395.06 377.64
349.78
318.96 321.97 Company (FM Global), USA; (x) Zurich Insurance Company
2018 2019 2020 2021 2022
Limited, Switzerland; (xi) AXA Insurance Company, France;
(xii) Baloise Insurance Limited, Switzerland; (xiii) Talbot
Underwriting Income Investment Income Pre tax profit After tax profit
Underwriting; (xiv) XL Catlin.

RISKS AND CONCERNS EXTRAORDINARY ACTIVITIES

Business involves risks. Without risk no business can be
presumed whether it is small or large. Insurance business
deals with the risks of other business organizations and
also the personal properties of individuals. As a non-life
insurer, Reliance Insurance Limited deals with enormous
type and number of risks underwriting risks of fire and fire
allied, marine cargo and marine hull, motor vehicle and
miscellaneous etc.us risks like burglary, personal accident
policy, engineering, crop insurance. Among the risks some
are very uncommon to the Insurance industry that counter
the concerns arising out of the aggressive progresses in
the insurance industry. High risks under different scenarios
are identified, assessed and monitored through regular
analysis by our specialist risk assessment team including
During the year there were no such event of extraordinary
nature and the company did not suffer or gain any loss or
gain from such activities.
RELATED PARTY TRANSACTIONS
The transactions with other entities that fall within the
definition of related party contained in International
Accounting Standard 24: Related Party Disclosures. All
transactions involving related parties arising in normal
course of business are conducted on an arm’s length basis
at commercial rates on the same terms and conditions
applicable to the third parties. Reliance Insurance Limited,
in normal course of business, needs to conduct some
transactions with related parties regarding issuance of
REVIEW OF CHAIRMAN, CEO
AND DIRECTORS’ REPORT

professionals of insurance as well as engineers. Further,
the main strategic risks identified by the company and the
high valued clientele are regularly monitored by the senior
management including any mitigating actions. Insurance
risks are classified as: strategic risks, underwriting risks,
reinsurance risks, reserving risks, investment risks, liquidity
risks and socio-politico-economic risks. Reliance Insurance
insurance policies against specified risks of those related
parties and pay off claims to those, if any, when exigencies
occur against those policies after due survey.
Detail of transactions with related parties and balances with
them, as at December 31, 2022, are shown in note-31 of the
financial statements.
62
REMUNERATION PAID TO DIRECTORS INCLUDING
INDEPENDENT DIRECTORS
During the year under review, the Company paid a total
of Tk. 0.96 million to the Directors including Independent
Directors against their Board meeting attendance fee only.
In addition to that no other remuneration, in any form, was
given to any other Directors or Independent Directors.
Details of the Directors’ attendance record are shown in
Annexure-III.
INFORMATION TECHNOLOGY (IT) SYSTEM AND
CONTROL
IT System
Reliance conformed a high-quality Human Resource Policy
to build up its every Division with capable employees giving
them required suitable in-house training and also external
training at home and abroad, if so necessary. With that intent
the IT Division was also built with IT professionals having
knowledge of both software and hardware. With enthusiastic
training and working experience the IT Division has become
capable of making required software by themselves to meet
up the demands of the other department/divisions. The IT
professionals with their ever-changing needs are constantly
innovating and producing in-house programs to meet the
day-to-day needs of the company’s growing and diverse
products and services. It has magnificently activated a Wide
Area Network (WAN) to connect the entire branch offices
situated all over the country on real time basis, with a view
to providing unified connectivity and prompt customer
services. Reliance acquires high configured server as
and when required for running its oracle 11g WebLogic
application server to build-up three tier applications and
hardware architecture.
Reliance has upgraded its oracle Front End Application from
10g to 11g web version as well as backend database from
10g to 19c together with migration into three tier systems
(like client >> application server >> database server). As
a result, Reliance CIIS software can be accessed from
anywhere through any web browser, resulting in reduction
of connectivity cost significantly.
Reliance has already start selling five (05) insurance products
through online. As per requirement of IDRA Reliance has
started online based E-receipt system from March 01, 2022.
IT control
IT systems and control refer to the mechanism and
procedure put in place to manage and regulate the
operation of information technology systems. Some of the
areas of focus for IT system and control includes:
1. Access Control: RIL has the unique mechanism to
ensure that only authorized individuals have access to
the IT systems and data.
2. Data Security: RIL has regular basis backup policy and
redundant server to secured data.
3. Disaster Recovery: RIL ensures different types of
disaster recovery process to restore data quickly and
effectively.
Reliance Insurance Limited
Annual Report 2022
4. Monitoring and reporting: RIL regularly monitor IT
system and evaluate performance, compliance with
policies and regulations.
5. Compliance: RIL always maintains the compliance with
IDRA, Bangladesh Bank, NBR and others GOVT body as
their need.
HUMAN CAPITAL MANAGEMENT
It has been an important practice in Reliance Insurance
Limited to always accentuate on professionalism and
development of appropriate human resource management
policies to enhance the quality of its employees, and to ensure
their optimum contribution towards the achievement of its
goals. The Company believes that its Human Resources (HR)
gives it a significant competitive edge in terms of knowledge
and experience. It has continued its policy of recruiting the
best people and implementing programs to develop and
retain high quality human resources in its various divisions/
departments. In line with this Policy, the need-based internal
and external training at both home and abroad, is regularly
and systematically arranged. The Company also ensures
attractive compensation packages and rewards including
employee’s safety and health including the family members
to some extent to assure their retention and provide job
satisfaction.
CORPORATE GOVERNANCE
Publicly listed entities witnessed exponential increase in
corporate governance awareness in recent years due to
increased legislative and regulatory activities as well as
evolving best practice recommendations.
As a leading insurance company in Bangladesh led
by professional people, Reliance Insurance Limited is
committed to adopt the highest governance standard and
adjusting them as required in protecting the interest of
shareholders and policyholders.
Good corporate governance system is vital for efficient and
effective business operation to achieve the set goals. In line
with the best practice, the corporate governance systems
and practices in Reliance are designed to ensure adequate
internal control, transparency and accountability in the day-
to-day operational process. The Board of Directors always
puts emphasis on the point that the company conducts
itself as a good corporate entity and comply with corporate
behavior and guidelines as well as trustworthiness to
rules and regulations. It also ensures that duties and
responsibilities are appropriately segregated between the
Board and the Management to provide sufficient check and
balance and flexibility for smooth business operations. The
Board provides leadership and direction to the Management,
approves strategic decision, makes major policies and
oversees Management role to attain predetermined goals
and objectives of the company.
CORPORATE SOCIAL RESPONSIBILITY
The Company has continued its endeavours to deliver
economic and social benefits to the community in
discharge of its CSR and has extended financial assistance
to various non-profit organizations like Mastul Foundation,
Bangladesh Thalassemia Hospital (BTH), Society for Health
Promotion Links (SHPL), Alokito Poth, Apon Bhubon, Centre

for Disability in Development (CSDD) and Disabled Child
Foundation.
Organization /Year 2022
Bangladesh Thalassemia Hospital 300,000
Alokito Poth 500,000
Apon Bhubon 500,000
Society for Health Promotion Links (SHPL) 600,000
Mastul Foundation 400,000
Bangladesh Insurance Academy 100,000
Total in the Year 2,400,000
CREDIT RATING
Credit Rating Information and Services Limited (CRISL)
has reaffirmed the Claim Paying Ability (CPA) Rating of the
Company “AAA” (Triple A indicating highest claim paying
ability) valid up to December 28, 2023 based on the financials
up to December 31, 2021 and other relevant qualitative and
quantitative information up to the date of reporting on
December 29, 2022. The reaffirmation effectively reflects
Company’s excellence in prudent underwriting and financial
performance, substantial market shares and franchise value,
good solvency, state of-the-art-IT infrastructure, quality
reinsurance arrangement with Sadharan Bima Corporation
(SBC) and with top rated foreign reinsurers, significant
business exposure from multinational clients.
Claim Paying Ability
CPA Rating AAA
Outlook Stable
Date of Rating: December 29, Valid up to: December
2022 28, 2023
OUR FUTURE OUTLOOK
It is apparent that the economic condition would not go
well in Bangladesh like the world economy at large in the
year 2023. The International Monetary Fund (IMF) has
lowered the projection of gross domestic products growth
for Bangladesh to 6% for the first half year of 2023. The
inflation rate is quite higher than it was expected. Recent
declaration of the price hike of both electricity and gas
for the industries would impact further on inflation. The
essential commodity prices have already gone up beyond
the earning capacity of general people to expense for
services like insurance in Bangladesh. The ongoing dollar
shortage in the banking sector is posing a threat to
local textile millers and spinners as they have difficulties
in opening letter of credit to import raw materials and
cotton to feed the country’s readymade garment industry.
However, we do believe that Bangladesh will definitely
be able to tide over the difficulties posed by the ensuing
crisis. We also believe that our primary regulator, Insurance
Development and Regulatory Authority (IDRA), would also
be able to tide over the prevailing unhealthy competitions
taking appropriate regulatory measures. Reliance
Insurance Limited with its prudent insurance services,
will remain committed to overcome any challenges of the
future and to be in momentum for prudential business
growth in 2023.
63
DIRECTORS
A. Sponsors Directors
In terms of the Article 114 of the Articles of Association, the
following Directors from Group A shareholders retire from
office but being eligible they offer themselves for re-election:
1) Ms. Zakia Rouf Choudhury
2) Mr. Iftekharul Huq
3) Mr. Shamsur Rahman
B. Public Subscribers Directors
In accordance with the same provisions of the Articles of
Association mentioned above, the following Directors from
Group B shareholders retire from office but being eligible
they offer themselves for re-election:
1) Mr. Abdullah Al Mamun
2) Ms. Shahzreh Huq
As required by Insurance Rules, 1958, election of Directors
from public subscribers will be held in the said Annual
General Meeting. The necessary notice for election of
Directors from public subscribers was published in the
required national dailies on 25 January 2023.
C. Independent Directors
With a view to complying with the Corporate Governance
Code, issued by BSEC on 3 June 2018, Reliance Insurance
Limited reconstructed its Board Size and appointed the
required number distinguished and experienced persons
as Independent Directors on the Board and all of them
required approval of the Commission latter on.
1) Mr. Azizur Rashid FCA
2) Mr. Md. Habibur Rahman Mollah FCA
3) Mr. Anis-uz-Zaman Khan
4) Professor Mohammad Abdullah
AUDITORS
A. Statutory Auditors
In accordance with the notification no. 2 (2), issued by
BSEC on 20 June 2018, existing statutory Auditors M/s.
Zoha Zaman Kabir Rashid & Co, Chartered Accountants,
have completed their consecutive second year of service
as the statutory auditors and being eligible they offer for re-
appointment for the year 2023. A resolution will be placed
for approval of the re-appointment of M/s. Zoha Zaman
Kabir Rashid & Co., Chartered Accountants in the meeting
as per recommendation by the Audit Committee.
B. Compliance Auditors
The company shall obtain a certificate from a practicing
REVIEW OF CHAIRMAN, CEO
Professional Accountant or Secretary other than its statutory
AND DIRECTORS’ REPORT
auditors or audit firm on yearly basis regarding compliance
of conditions of Corporate Governance Code of the
Commission who will provide the certificate on compliance
of the Corporate Governance Code shall be appointed by
the shareholders in the annual general meeting. M/s. Haque
Fazlul & Co., Chartered Accountants completed their audit
of the same for the year 2022 and being eligible they offer
for re-appointment for the year 2023. A resolution will also
64
be placed for approval of the re-appointment of M/s. Haque
Fazlul & Co., Chartered Accountants in the meeting as per
recommendation by the Audit Committee.
PROFITABILITY OF THE COMPANY
Reliance Insurance Limited has performed with consistent
profitability over the years, which is evident from the
statistical figures. In the year 2022, in spite of the ongoing
post COVID situation, absence of usual atmosphere for
motor vehicle insurance and foreign currency crisis to open
required letters of credit to enhance marine cargo insurance,
we could register a business growth of 12.21% over 2021. As
the insurance business is basically a risk-taking business
and hence vulnerable to fluctuations, Reliance Insurance
Limited follows a conservative policy – both in matter of
insurance underwriting and investments to safeguard the
interests of the company in the long run.
FINANCIAL RESULTS & APPROPRIATION
Taking into consideration of the company’s financial needs
and the shareholders’ short term as well as long term interest,
the Board of Directors recommends the appropriations of
after-tax profit for the year 2022 in the following manner:
Particulars BDT
Net Profit after tax available for 615,930,511
appropriation
Appropriation to:
Reserve for exceptional losses 127,423,603
General reserve 100,000,000
Dividend @ 25% cash 262,902,718
CORPORATE AND FINANCIAL REPORTING
FRAMEWORK
We also report that:
I. The financial statements prepared by the management
of the company fairly present its state of affairs, the
operational result, cash flows and changes in equity.
II. Proper books of account of the company have been
maintained.
III. Appropriate accounting policies have been
consistently applied in preparation of the financial
statements and that the accounting estimates are
based on reasonable and prudent judgment.
IV. International Accounting Standards (IAS)/Bangladesh
Accounting Standards (BAS), International Financial
Reporting Standards (IFRS)/Bangladesh Financial
Reporting Standards (BFRS), as applicable in
Bangladesh, have been followed in preparation of the
financial statements, and any departure there from has
been adequately disclosed.
V. The system of internal control is sound in design and
has been effectively implemented and monitored.
VI. There is no significant doubt about the company’s
ability to continue as a going concern.
VII. All significant deviation from last year in operating
result of the company have been discussed with
explanation.
Reliance Insurance Limited
Annual Report 2022
VIII. The key operating and financial data of preceding five
years have been provided in page - 66.
IX. The number of Board meetings held during the year
2022 and attendance by each director are shown in
page- 67.
X. As on December 31, 2022, shareholdings pattern of the
Company is shown in page- 68.
XI. A brief resume of the Directors who retire from office,
but eligible for re-election along with other necessary
particulars are shown in page- 27-35.
XII. A brief resume of the Independent Directors with other
necessary particulars are shown in page- 33-35.
XIII. A Management’s Discussion and Analysis signed
by CEO or MD presenting detailed analysis of the
company’s position and operations along with a brief
discussion of changes in the financial statements,
among others in pages- 69-70.
XIV. Declaration or certification by the CEO and the CFO
to the Board as required under condition No. 3(3) is
disclosed in Annexure–A (page- 71).
XV. The report as well as certificate regarding compliance
of conditions of this Code as required under condition
No. 9 is disclosed in Annexure–B and Annexure–C
(pages-72-80).
ACKNOWLEDGEMENT
We always remember with sincere gratitude our clients
and shareholders for their tremendous support and trust
reposed on us. We would extend our sincere thanks to Banks
and financial institutions with whom we have extensive
daily dealings; along with the Regulators, Dhaka Stock
Exchange Ltd, Chittagong Stock Exchange Ltd, BAPLC,
NBR, FRC, BSEC, IDRA, Sadharan Bima Corporation, related
Government bodies and stakeholders for their persistent
co-operation and support.
I would like to extend my wholehearted thanks to the
honourable members of the Board for their continuous
co-operation and valuable advices to administer the affairs
of the company smoothly and also to the different Sub-
Committees of the Board for performing their defined roles.
On behalf of the Board of Directors, I would like to take
the opportunity to express our sincere thanks to the Chief
Consultant, the Chief Executive Officer and members
of the staff of the company both at Head Office and at
the branches for their praiseworthy and performance in
adhering to company’s vision. I am very much confident
and hopeful that they will continue to be steadfast in the
face of adversity and achieve better results in the years to
come.
Thank you all.
For and on behalf of the Board of Directors
Rajiv Prasad Shaha
Chairman
 65

Summary of Accounts 2022

By this summary information, investors and creditors use to
evaluate company’s business and investment performance
at a glance. Summary information are also important
to the company’s managers because by publishing
summary information, management can communicate
with interested outside parties about its accomplishment
running the company for the relevant year and previous
year as well. As capital providers, investors and creditors
rely on a company’s financial conditions for both the safety
and profitability of their investments. More specifically,
investors and creditors need to know where their money
went and where it is now. So they can confirm Company’s
business and investment position easily from the summary
of Accounts.

(BDT in Million)
Marine Marine
Details Fire Motor Misc. 2022 2021
Cargo Hull
Gross Direct Premium 1,937.45 702.01 253.25 138.61 492.31 3,523.63 3,140.35

Gross R/I Premium - - - - - - -

Total Gross Premium 1,937.45 702.01 253.25 138.61 492.31 3,523.63 3,140.35

Reinsurance Premium ceded 1,487.19 240.47 182.24 3.37 336.12 2,249.39 1,991.48

Net Premium 450.26 461.54 71.01 135.24 156.19 1,274.24 1,148.87

Net Premium Reserve retained (17.69) (15.08) (34.23) 5.38 (9.06) (70.69) (43.10)

Net Earned Premium 432.57 446.46 36.77 140.62 147.13 1,203.55 1,105.77

Commission Paid 137.46 112.50 16.61 19.87 18.43 304.87 186.11

Net R/I Commission Earned 165.40 75.33 40.44 - 36.45 317.62 273.45

Management Expenses (Revenue A/C) 221.67 79.97 28.85 16.55 56.25 403.30 380.40

Management Expenses (P & L A/C) - - - - - 54.49 56.62

Gross Incurred Claims 861.54 65.18 50.52 26.21 (72.90) 930.55 699.90

Net Incurred Claims 64.95 57.16 22.53 26.21 26.95 197.80 238.19

U/W Result 173.90 272.16 9.22 77.98 81.95 615.20 574.52

Investment Income (Before Tax) 321.97 318.96

Net Profit before tax 882.68 836.86

Return on Equity (%) 16.59 15.26

Shareholders' fund 6,745.71 6,771.16

REVIEW OF CHAIRMAN, CEO

AND DIRECTORS’ REPORT
66

Key Operating &

Financial Highlights 2022
(Taka are in Million except ratios)

Particulars Terms 2022 2021 2020 2019 2018 2017

Financial Position
Total assets $ 11,605.59 11,082.88 10,277.90 8,999.72 8,804.50 8,230.75
Investments $ 2,875.43 3,172.68 2,839.10 1,876.34 2,751.27 3,246.26
Current assets $ 5,880.54 5,140.31 4,838.10 4,559.56 3,797.50 3,266.28
Net current assets $ 1,020.66 828.58 947.11 1,091.71 807.09 578.67
Cash & cash equivalents $ 3,932.64 3,483.42 3,116.54 2,844.50 2,451.65 2,010.91
Net asset $ 6,745.71 6,771.16 6,386.90 5,531.88 5,814.10 5,543.14
Current liabilities $ 4,859.88 4,311.73 3,890.99 3,467.85 2,990.41 2,687.61
Total Reserve $ 6,246.40 6,201.15 5,773.81 5,029.50 5,456.65 5,254.46
Operational Result
Gross premium $ 3,523.63 3,140.35 2,937.12 3,004.15 2,689.26 2,572.67
Net premium $ 1,274.24 1,148.87 1,062.50 1,324.70 1,312.49 1,237.65
Net claims $ 197.80 238.19 210.90 175.51 245.59 207.13
Underwriting profit $ 615.20 574.52 470.98 535.97 416.01 378.89
Profit before interest, dep. & tax $ 921.93 876.64 812.04 889.26 662.03 661.15
Net profit before tax $ 882.68 836.86 770.48 849.76 694.43 630.47
Net profit ater tax $ 615.93 587.81 548.18 585.42 498.13 456.53
Investment & other income $ 321.97 318.96 377.64 395.06 349.78 325.44
Cash flow from operating activities $ 694.55 837.39 683.29 485.36 336.79 107.75
Net operating cash flow per share $ 6.60 7.96 6.50 4.66 3.52 1.13
Financial Ratio
Dividend in stock % 0% 0% 0% 0% 10% 10%
Dividend per share (cash) $ 2.50 2.50 2.50 2.50 1.50 1.50
Earnings per share $ 5.86 5.59 5.21 5.57 4.74 4.78
Return on shareholders' fund % 16.59 15.26 15.32 20.72 17.38 18.28
Return on capital employed % 20.69 19.31 19.18 25.18 18.28 20.80
Return on assets % 5.31 5.30 5.33 6.50 5.66 5.55
Claim ratio % 15.52 20.73 19.85 13.25 15.78 16.74
Combined ratio % 25.71 24.59 32.67 34.21 39.65 36.84
Surplus ratio % 124.84 138.65 112.18 121.34 162.62 213.88
Solvency ratio % 8.08 11.25 10.62 6.30 4.43 4.48
Debt equity ratio % 63.86 56.57 54.06 52.76 42.14 39.34
Price earnings ratio $ 9.97 15.65 11.89 7.81 8.75 11.45
Current ratio $ 1.21:1 1.19:1 1.24:1 1.31:1 1.25:1 1.25:1
Underwriting/Gross profit ratio $ 48.28 52.84 44.33 40.46 31.70 30.61
Dividend payout ratio $ 42.68 44.73 47.96 44.88 47.98 52.35
Dividend yield $ 4.28 2.86 4.03 5.75 5.48 4.57
Equity Statistics
Paid-up capital $ 1,051.61 1,051.61 1,051.61 1,051.61 956.01 869.10
Shareholders' equity $ 6,745.71 6,771.16 6,386.90 5,531.88 5,814.10 5,543.14
Market value per share $ 58.40 87.50 62.00 43.50 45.60 54.70
Net assets value per share $ 64.15 64.39 60.73 52.60 60.82 57.98

Reliance Insurance Limited

Annual Report 2022
 Meeting Attended by the Directors During 2022
Nomination and
Finnance & Asset
Board of Directors Meeting Audit Committee Meeting Remuneration Committee
Management Committee
Meeting
Name of the Director Nominated By
Total Total Total Total
Meetings Meetings Meetings Meetings
Meetings % Meetings % Meetings % Meetings %
Attended Attended Attended Attended
held held held held

Ms. Shahnaz Rahman Trinco Limited 6 5 83

Kumudini Welfare Trust of
Mr. Rajiv Prasad Shaha 6 5 83
Bengal (BD) Limited
Ms. Zakia Rouf Chowdhury Rangs Limited 6 4 67 1 1 100
Mr. Shamsur Rahman Self 6 6 100 2 2 100
Mr. Arshad Waliur Rahman Transfin Trading Limited 6 5 83 2 2 100
Mr. Imran Faiz Rahman Arlinks Limited 6 5 83 4 3 75
General Produce International
Ms. Samira Alam 6 4 67 1 1 100
Limited
Mr. Iftekharul Huq FinAccord Trading Limited 6 5 83
Ms. Srimati Shaha Kumudini Handicraft 6 5 83
Ms. Sabra Yesmin Chowdhury Rangs Workshop Limited 6 1 17
Ms. Amiran Hossain Deep Sea Fishers Limited 6 4 67 1 1 100
Ms. Shahzreh Huq Transcom Limited 6 5 83
Mr. Abdullah Al Mamun FCA Transcom Electronics Limited 6 6 100
Mr. Azizur Rashid FCA Independent Director 6 6 100 4 4 100 1 1 100
Mr. Md. Habibur Rahman Mollah
Independent Director 6 6 100 4 4 100
FCA
Mr. Anis-uz-Zaman Khan Independent Director 6 6 100 2 2 100
Professor Mohammad Abdullah Independent Director 6 6 100
67

REVIEW OF CHAIRMAN, CEO

AND DIRECTORS’ REPORT
68

Pattern of Shareholding
As on December 31, 2022

A) SHAREHOLDING BY COMPANIES, DIRECTORS AND THEIR SPOUSE & CHILDREN:

Name of Shareholders Represented by No. of Shares Held %

Rangs Limited Ms. Zakia Rouf Chowdhury 7,064,737 6.72
General Produce International Ltd. Ms. Samira Alam 3,265,604 3.11
FinAccord Trading Ltd. Mr. Iftekharul Huq 3,447,604 3.28
Transfin Trading Ltd. Mr. Arshad Waliur Rahman 7,562,573 7.19
Arlinks Limited Mr. Imran Faiz Rahman 6,452,104 6.14
Trinco Limited Ms. Shahnaz Rahman 7,562,771 7.19
Mr. Shamsur Rahman Self 4,111,678 3.91
Kumudini Welfare Trust of Bengal (BD) Ltd. Mr. Rajiv Prasad Shaha 6,868,227 6.53
Prantik Engineering Co. Ltd. Sponsor Shareholder 1,716,932 1.63
Rangs Workshop Ltd. Ms. Sabra Yesmin Chowdhury 3,727,709 3.54
Deep Sea Fishers Ltd. Ms. Amiran Hossain 6,666,649 6.34
Transcom Limited Ms. Shahzreh Huq 2,494,880 2.37
Kumudini Handicraft Ms. Srimati Shaha 2,103,515 2.00
Transcom Electronics Limited Mr. Abdullah Al Mamun FCA 4,513,441 4.29
Ms. Nafisa Rahman Siddiqui Self 1,153,033 1.09
--Daughter of Mr. Shamsur Rahman
Ms. Fahreen Rahman Self 1,153,033 1.09
--Daughter of Mr. Shamsur Rahman
Independent Director Nil
Chief Executive Officer Nil

B) SHAREHOLDERS BY OTHERS:

Name of Shareholders No. of Shares Held %

Company Secretary Nil
CFO Nil
Head of Internal Audit Nil
Parent/Subsidiary/Associate and other related parties Nil
Shareholding of top five executives Nil
Shareholders holding ten percent or more Nil

Reliance Insurance Limited

Annual Report 2022
 69

Management’s
Discussion and Analysis
As per condition no. 1(5) (xxv) of the Corporate Governance B. Changes in accounting policies and estimation.
Code 2018 issued by BSEC, the Management’s Discussion
The Company has been following consistent policies and
and Analysis are as follows-
estimation in preparing its financial statements. There has
A. Accounting policies and estimation for preparation been no change to the accounting policies adopted by the
of Financial Statements
company during the year 2022.
The Company follows International Financial Reporting
Standards (IFRS) in preparing financial statements. C. Comparative analysis of financial performance or
Disclosure and rules, as required by Insurance Act 2010 and results and financial position as well as cash flows for
the Companies Act 1994, have been complied with while
current financial year and immediately preceding five
preparing financial statements. In addition, the Bangladesh
Securities and Exchange Commission Rules 1987, Listing years.
Regulations of Dhaka Stock Exchange Ltd. (DSE) & Chittagong The company consistently maintained attractive earnings
Stock Exchange Ltd. (CSE) have been adhered to. Detailed
growth for the last five years. The key operating and financial
description of accounting policies and estimation used for
preparation of the financial statements of the company are performances and financial position as well as cash flows
disclosed in the note 2 of the financial statements. for preceding five years are as follows:

Figures are in million except ratios & per share items

Particulars 2022 2021 2020 2019 2018

Gross premium 3,523.63 3,140.35 2,937.12 3,004.15 2,689.26

Net premium 1,274.24 1,148.87 1,062.50 1,324.70 1,312.49

Underwriting profit 615.20 574.50 470.98 535.97 416.01

Investment & other income 321.97 318.96 377.64 395.06 349.78

Net profit before tax 882.68 836.86 770.47 849.76 694.43

Net profit after tax 615.93 587.81 548.18 585.42 498.13

EPS 5.86 5.59 5.21 5.57 4.43

NOCFPS 6.60 7.96 6.50 4.66 3.20

Paid-up capital 1,051.61 1,051.61 1,051.61 1,051.61 956.01

Shareholders' equity 6,745.71 6,771.16 6,386.9 5,531.93 5,814.10

Total assets 11,605.60 11,082.88 10,277.8 8,999.72 8,804.50

NAVPS 64.15 64.39 60.73 52.60 55.29

D. Comparison of such financial performance or results and financial position as well as cash flows with the peer
industry scenario
Major areas of financial performances and financial position as well as cash flows with peer industry scenario for the year 2021
are as follows-
REVIEW OF CHAIRMAN, CEO

Figures are in million except ratios & per share items

AND DIRECTORS’ REPORT

Reliance Green Delta Pioneer Insurance Pragati Insurance Provati Insurance

Particulars
Insurance Ltd. Insurance Co. Ltd. Co. Ltd. Co. Ltd. Co. Ltd.
Gross premium 3,140.35 3,843.31 2,869.22 2,506.52 1056.2

Net premium 1,148.87 1,546.81 1,581.24 942.74 811.82

Underwriting profit 574.5 1202.59 775.39 408.99 91.24

70

Reliance Green Delta Pioneer Insurance Pragati Insurance Provati Insurance

Particulars
Insurance Ltd. Insurance Co. Ltd. Co. Ltd. Co. Ltd. Co. Ltd.
Investment & other income 318.96 315.8 93.57 130.05 108.29

Net profit before tax 836.86 1,256.00 840.87 524.2 176.08

Net profit after tax 587.81 787.18 586.64 375.06 149.32

EPS 5.59 7.86 7.62 5.72 4.3

NOCFPS 7.96 -4.32 8.65 12.09 1.41

Paid-up capital 1,051.61 1001.88 769.79 655.9 347.51

Shareholders' equity 6,771.16 6,723.21 3,745.44 3,759.78 776.33

Total assets 11,082.88 12,640.58 5,798.12 5,679.79 1,393.15

NAVPS 64.39 67.11 48.66 57.32 16.84

Source: Published Annual report -2021

E. Financial and economic scenario of the country and
the globe
It is apparent that the economic condition would not go well
in Bangladesh like the world economy at large in the year
2023. The International Monetary Fund (IMF) has lowered
the projection of gross domestic products growth for
Bangladesh to 6% for the first half year of 2023. The inflation
rate is quite higher than it was expected. Recent declaration
of the price hike of both electricity and gas for the industries
would impact further on inflation. The essential commodity
prices have already gone up beyond the earning capacity
of general people to expense for services like insurance in
Bangladesh. The ongoing dollar shortage in the banking
sector is posing a threat to local textile millers and spinners
as they have difficulties in opening letter of credit to import
raw materials and cotton to feed the country’s readymade
garment industry. However, we do believe that Bangladesh
will definitely be able to tide over the difficulties posed by the
ensuing crisis. Reliance Insurance Limited with its prudent
insurance services, will remain committed to overcome
any challenges of the future and to be in momentum for
prudential business growth in 2023.
According to World Bank, after rebounding to an estimated
5.5 percent in 2021, global growth is expected to decelerate
markedly to 4.1 percent in 2022, reflecting continued
COVID-19 flare-ups, diminished fiscal support, and lingering
supply bottlenecks. Global growth is projected to soften
further to 3.2 percent in 2023.
According to Bangladesh Bank Statistics, Bangladesh GDP
was 6.94% in 2021 and is forecast to be 7.24% in 2022 and
6% in 2023.
According to Swiss Re, Global insurance premium estimated
a strong 6.1% nominal growth in total premiums (non-life
and life) in 2022. Further, we forecast that in nominal terms,
global premium volumes will surpass the USD 7 trillion mark
by the end of this year for the first time ever. This is based on
our expectation of more rate hardening in non-life to counter
high inflation and strong premium growth in emerging
markets. At this level, volumes will be 17% higher than at
the onset of the COVID-19 crisis, reflecting the resilience of
insurance markets over the course of the pandemic.
Insurance penetration in Bangladesh in GDP percentage
increased to 0.5% (Life 0.4% & Non-life 0.1%) in 2021, from
0.4% a year ago. In Bangladesh, total insurance premium
in 2021 increased by 9.69%. Bangladesh is now 60th largest
market in terms of the total insurance premium volume (Life
+ Non-life) in 2021. Bangladesh non-life insurance industry
continues to operate as one of the smallest in the world
(holding 76th position in the world ranking). In the non-life
insurance sector, 45 private insurers and 1 state-owned
corporation have earned TK 42,497 million in 2021.
F. Risks and concerns issues related to the financial
statements, explaining such risk and concerns
mitigation plan of the company
The company has exposures to underwriting risk, credit
risk, market risk and liquidity risk relating to the financial
statements. The detail explanation along with the Risk
management are explained in pages 158-169.
G. Future plan or projection or forecast for company’s
operation, performance and financial position
Following a rather difficult year of 2021, the year 2022 has
brought in much needed turn around in the operations
of the Company. Reliance Insurance Limited believe in its
underlying strengths and resilience to deliver optimum
service to its customers. It has always been a team effort
with unstinted support received from all concerned. The
company also finds new pathway of providing services
to the valued clients. It will continuously take diversified
business approach and invest in building capabilities for
further entrenching the leadership position in the market
and continuing with the successful operations of the
company for foreseeable future.
Md. Khaled Mamun FCII (UK)
Chief Executive Officer

Reliance Insurance Limited

Annual Report 2022
 71

Annexure-A
As per condition No. 1(5)(xxvi) of CGC

Declaration by CEO and CFO

Date: February 12, 2023

The Board of Directors

Reliance Insurance Limited
Shanta Western Tower (Level-5),
186, Bir Uttam Mir Shawkat Ali Shorak,
Tejgaon I/A, Dhaka -1208

Subject: Declaration on Financial Statements for the year ended on December 31, 2022.

Dear Sirs,

Pursuant to the condition No. 1(5)(xxvi) imposed vide the Commission’s Notification No. BSEC/ CMRRCD/2006-158/207/
Admin/80 Dated 3 June 2018 under section 2CC of the Securities and Exchange Ordinance, 1969, we do hereby declare that:

1. The Financial Statements of Reliance Insurance Limited for the year ended on December 31, 2022 have been prepared
in compliance with International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS), as
applicable in the Bangladesh and any departure there from has been adequately disclosed;
2. The estimates and judgments related to the financial statements were made on a prudent and reasonable basis, in order
for the financial statements to reveal a true and fair view;
3. The form and substance of transactions and the Company’s state of affairs have been reasonably and fairly presented in
its financial statements;
4. To ensure above, the Company has taken proper and adequate care in installing a system of internal control and
maintenance of accounting records;
5. Our internal auditors have conducted periodic audits to provide reasonable assurance that the established policies and
procedures of the Company were consistently followed; and
6. The management’s use of the going concerns basis of accounting in preparing the financial statements is appropriate
and there exists no material uncertainty related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern.

In this regard, we also certify that: -

i. We have reviewed the financial statements for the year ended on December 31, 2022 and that to the best of our knowledge
and belief:
a) these statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading;
b) these statements collectively present true and fair view of the Company’s affairs and are in compliance with existing
accounting standards and applicable laws.
ii. There are, to the best of knowledge and belief, no transactions entered into by the Company during the year which are
fraudulent, illegal or in violation of the code of conduct for the company’s Board of Directors or its members.

Sincerely yours,
REVIEW OF CHAIRMAN, CEO
AND DIRECTORS’ REPORT

Md. Khaled Mamun Badal Chandra Rajbangshi

Chief Executive Officer (CEO) Chief Financial Officer (CFO)
72

Reliance Insurance Limited

Annual Report 2022
 73

Status of Compliance on the

Corporate Governance Code
(CGC)
[AS PER CONDITION NO. 1(5)(XXVII)]
Status of compliance with the conditions imposed by the Commission’s Notification No. BSEC/CMRRCD/2006-158/207/
Admin/80, dated 3 June 2018 issued under section 2CC of the Securities and Exchange Ordinance, 1969:

(REPORT UNDER CONDITION NO. 9)

Compliance Status as
Condition on 31 December 2022
Title Remarks
No. Not
Complied
Complied
1 BOARD OF DIRECTORS
1(1) Board Size (minimum - 5 and maximum - 20). √
1(2) Independent Director
1(2)(a) 1/5th of total BoD shall be Independent Director (ID). √
1(2)(b)(i) Does not hold any share or less than 1% shares in the Company. √
1(2)(b)(ii) Not a Sponsor of the Company. √
Who has not been an executive of the company in immediately
1(2)(b)(iii) √
preceding 2 (two) financial years.
Does not have any other relationship with the company or its
1(2)(b)(iv) √
subsidiary or associated companies.
Not a Member or TREC holder, director or officer of any stock
1(2)(b)(v) √
exchange.
Not a Shareholder/Director/Officer of any Member / TREC holder of
1(2)(b)(vi) √
stock exchange or an intermediary of the capital market.
Not a partner or an Executive or was not a partner or an Executive
during the Preceding 3 (Three) years of the concerned Company’s
1(2)(b)(vii) √
statutory audit firm or audit firm engaged in internal audit or special
audit or professional certifying complacence of this code.
1(2)(b)(viii) Not an Independent Director in more than five listed Companies. √
Not convicted by a court of competent jurisdiction as a defaulter
1(2)(b)(ix) in payment of any loan/advance to a Bank or a Non-Bank Financial √
Institution.
1(2)(b)(x) Not convicted for a criminal offence involving moral turpitude. √
1(2)(c) Appointed by the Board and approved by the shareholders in AGM. √
1(2)(d) Post cannot remain vacant more than 90 days. √
Tenure of the Independent Director shall be for a period of 3 (three)
1(2)(e) √
years, which may be extended for 1 (one) tenure only.
1(3) Qualification of Independent Director
Independent Director shall be a knowledgeable individual with
1(3)(a) √
integrity.
REVIEW OF CHAIRMAN, CEO

Business Leader who is or was a promoter or director of an unlisted

AND DIRECTORS’ REPORT

1(3)(b)(i) company having minimum paid-up capital of Tk.100 million or any √

listed company.
1(3)(b)(ii) Should be a Corporate Leader/Business Leader. √
Former official of government or statutory or autonomous or
1(3)(b)(iii) regulatory body in the position not below 5th Grade of the national √
pay scale.
74

Compliance Status as
Condition on 31 December 2022
Title Remarks
No. Not
Complied
Complied
University Teacher who has educational background in Economics
1(3)(b)(iv) √
or Commerce or Business Studies or Law.
Professional who is or was an advocate practicing at least in the
1(3)(b)(v) High Court Division of Bangladesh Supreme Court or a CA/ C & M √
A/CFA/CCA/CPA/ or CMA/ CS or equivalent qualification
The independent director shall have at least 10 (ten) years of
1(3)(c) √
experiences.
1(3)(d) Relaxation in special cases. N/A
1(4) Duality of Chairperson of the Board of Directors and Managing Director or Chief Executive Officer
The positions of Chairperson of the board and MD and/or CEO shall
1(4)(a) √
be different individuals.
MD and/or CEO of a listed Company shall not hold the same
1(4)(b) √
position in another listed Company.
The Chairperson shall be elected from among the non-executive
1(4)(c) √
directors of the company.
The Board shall clearly define respective roles and responsibilities
1(4)(d) √
of the Chairperson and the Managing Director and/or CEO.
In absence of Chairperson of the Board, the remaining members
1(4)(e) may elect one of themselves from nonexecutive directors as √
Chairperson for that particular Board’s meeting
1(5) The Directors’ Report to Shareholders
1(5)(i) Industry outlook and possible future developments in the industry. √
1(5)(ii) Segment-wise or product-wise performance. √
Risks and concerns including internal and external risk factor, threat
1(5)(iii) √
to sustainability and negative impact on environment.
Discussion on Cost of Goods sold, Gross profit Margin and Net
1(5)(iv) √
Profit Margin.
Discussion on continuity of any extraordinary activities and their
1(5)(v) √
implications.
1(5)(vi) Detailed discussion and statement on related party transactions. √
Utilization of proceeds from public, rights issues and/or through
1(5)(vii) N/A
any others instruments.
Explanation if the financial results deteriorate after the company
1(5)(viii) N/A
goes for IPO, RPO, Rights Offer, Direct Listing, etc.
Explanation on any significant variance occurs between Quarterly
1(5)(ix) √
Financial Performance and Annual Financial Statements.
1(5)(x) Remuneration to Directors including Independent Director. √
Statement that financial statements prepared by the management
1(5)(xi) of the issuer company present fairly its state of affairs, the result of √
its operations, cash flows and changes in equity.
Proper books of account of the issuer company have been
1(5)(xii) √
maintained.
Appropriate accounting policies have been consistently applied
1(5)(xiii) in preparation to the financial statements and that the accounting √
estimates are based on reasonable and prudent judgment.
International Accounting Standards (IAS) or International Financial
Reporting Standards (IFRS), as applicable in Bangladesh, have
1(5)(xiv) √
been followed in preparation of the financial statements and any
departure there from has been adequately disclosed.
The system of internal control is sound in design and has been
1(5)(xv) √
effectively implemented and monitored.
A statement that minority shareholders have been protected from
1(5)(xvi) abusive actions by, or in the interest of, controlling shareholders acting N/A
either directly or indirectly and have effective means of redress.

Reliance Insurance Limited

Annual Report 2022
 75

Compliance Status as
Condition on 31 December 2022
Title Remarks
No. Not
Complied
Complied
A statement that there is no significant doubt upon the issuer
company’s ability to continue as a going concern, if the issuer
1(5)(xvii) √
company is not considered to be a going concern, the fact along
with reasons there of shall be disclosed.
Significant deviations from the last year’s operation results of the
1(5)(xviii) issuer company shall be highlighted and the reasons there of √
should be explained.
Key operating and financial data of at least preceding 5 (five) years
1(5)(xix) √
shall be summarized.
If the issuer company has not declared dividend (cash or stock) for
1(5)(xx) N/A
the year, the reasons there of shall be given.
Board’s statement to the effect that no bonus shares or stock
1(5)(xxi) N/A
dividend has been or shall be declared as interim dividend.
The number of Board meetings held during the year and attendance
1(5)(xxii) √
by each Director shall be disclosed.
A report on the pattern of shareholding disclosing the aggregate
1(5)(xxiii) √
number of shares (name wise details).
Parent/Subsidiary/Associated Companies and other related parties
1(5)(xxiii)(a) √
(name wise details).
Directors, CEO, Company Secretary, CFO, HIAC and their spouses
1(5)(xxiii)(b) √
and minor children (name wise details).
1(5)(xxiii)(c) Executives; and √
Shareholders holding ten percent (10%) or more voting interest in
1(5)(xxiii)(d) N/A
the company (name wise details).
1(5)(xxiv)(a) A brief resume of the director in case of appointment or reappointment. √
1(5)(xxiv)(b) Nature of his/her expertise in specific functional areas. √
Names of the companies in which the person also holds the
1(5)(xxiv)(c) √
directorship and the membership of committees of the Board.
Management discussion and analysis signed by CEO/MD presenting detail analysis of the company’s
1(5)(xxv) position and operations along with a brief discussion of changes in the financial statements, among
others, focusing on:
Accounting policies and estimation for preparation of financial
1(5)(xxv)(a) √
statements.
Changes in accounting policies and estimation as well as cash
1(5)(xxv)(b) N/A
flows on absolute figure for such changes.
Comparative analysis and financial position as well as cash flows
1(5)(xxv)(c) for current financial year with immediate preceding five years √
explaining reasons thereof
Compare such financial performance or results and financial
1(5)(xxv)(d) √
position as well as cash flows with the peer industry scenario.
Briefly explain the financial and economic scenario of the country
1(5)(xxv)(e) √
and the global.
Risks and concerns issues related to the financial statements and
1(5)(xxv)(f) √
concerns mitigation plan of the company.
Future plan or projection or forecast for company’s operation,
1(5)(xxv)(g) performance and financial position shall be explained to the √
shareholders in the next AGM.
REVIEW OF CHAIRMAN, CEO

Declaration or certification by the CEO and the CFO to the Board

AND DIRECTORS’ REPORT

1(5)(xxvi) as required under condition No. 3(3) shall be disclosed as per √

Annexure-A
The report as well as certificate regarding compliance of conditions
1(5)(xxvii) of this Code as required under condition No. 9 shall be disclosed as √
per Annexure-B and Annexure-C
1(6) Meeting of the Board of Directors
1(6) Compliance under Bangladesh Secretarial Standards (BSS). √
76

Compliance Status as
Condition on 31 December 2022
Title Remarks
No. Not
Complied
Complied
1(7) Code of Conduct for the Chairperson, other Board members and Chief Executive Officer
The Board shall lay down a code of conduct, based on the
1(7)(a) recommendation of the Nomination and Remuneration Committee √
(NRC).
The code of conduct as determined by the NRC shall be posted
on the website of the company including, among others, prudent
conduct and behavior; confidentiality; conflict of interest;
1(7)(b) √
compliance with laws, rules and regulations; prohibition of insider
trading; relationship with environment, employees, customers and
suppliers; and independency.
2 GOVERNANCE OF BOARD OF DIRECTORS OF SUBSIDIARY COMPANY
Provisions relating to the composition of the Board of the holding
2(a) company shall be made applicable to the composition of the Board N/A
of the subsidiary company.
At least 1 (one) independent director on the Board of the holding
2(b) N/A
company shall be a director on the Board of the subsidiary company
Minutes of subsidiary to be placed in the meeting of holding
2(c) N/A
company.
The minutes of the respective Board meeting of the holding
2(d) company shall state that they have reviewed the affairs of the N/A
subsidiary company.
The Audit Committee of the holding company shall also review
2(e) the financial statements in particular the investments made by the N/A
subsidiary company.
MANAGING DIRECTOR (MD) OR CHIEF EXECUTIVE OFFICER (CEO), CHIEF FINANCIAL OFFICER (CFO),
3
HEAD OF INTERNAL AUDIT AND COMPLIANCE (HIAC) AND COMPANY SECRETARY (CS)
3(1) Appointment
Board shall appoint a MD or CEO, Company Secretary, CFO and
3(1)(a) √
HIAC.
The positions of the MD, CEO, CS, CFO and HIAC shall be filled by
3(1)(b) √
different individuals.
The MD or CEO, CS, CFO and HIAC of a listed company shall not hold
3(1)(c) √
any executive position in any other company at the same time.
The Board shall clearly define respective roles, responsibilities and
3(1)(d) √
duties of the CFO, the HIAC and the CS.
MD or CEO, CS, CFO and HIAC shall not be removed from their
No such event
3(1)(e) position without approval of the Board and be disseminated to the √
occurred.
Commission and stock exchange(s).
3(2) Requirement to attend Board of Directors’ Meetings
MD or CEO, CS, CFO and HIAC shall attend the meetings of the
3(2) √
Board.
3(3) Duties of Managing Director (MD) or Chief Executive Officer (CEO) and Chief Financial Officer (CFO)
The MD or CEO and CFO shall certify to the Board that they have
3(3)(a) reviewed financial statements for the year and that to the best of √
their knowledge and belief:
The statements do not contain any materially untrue statement
3(3)(a)(i) or omit any material fact or contain statements that might be √
misleading.
The statements together present a true and fair view of the
3(3)(a)(ii) company’s affairs and are in compliance with existing accounting √
standards and applicable laws
The MD or CEO and CFO to certify that there are no transactions
entered into by the company during the year which are fraudulent,
3(3)(b) √
illegal or in violation of the code of conduct for the company’s
Board or its members.

Reliance Insurance Limited

Annual Report 2022
 77

Compliance Status as
Condition on 31 December 2022
Title Remarks
No. Not
Complied
Complied
The certification of the MD/CEO and CFO shall be disclosed in the
3(3)(c) √
Annual Report.
4 BOARD OF DIRECTORS’ COMMITTEE
4(i) Audit Committee √
4(ii) Nomination and Remuneration Committee √
5 AUDIT COMMITTEE
5(1) Responsibility to the Board of Directors
Company shall have an Audit Committee as a sub-committee of
5(1)(a) √
the Board.
Audit Committee shall assist the Board in ensuring that the financial
5(1)(b) statements reflect true and fair view of the state of affairs of the √
Company.
The Audit Committee shall be responsible to the Board; the duties
5(1)(c) √
of the Audit Committee shall be clearly set forth in writing.
5(2) Constitution of the Audit committee
The Audit Committee shall be composed of at least 3 (three)
5(2)(a) √
members.
Board shall appoint members of the Audit Committee who shall be
5(2)(b) non- executive director of the company excepting Chairperson of √
the Board and shall include at least 1 (one) independent director.
All members of the Audit Committee should be “financially literate”
and at least 1 (one) member shall have accounting or related
5(2)(c) √
financial management background and 10 (ten) years of such
experience.
When the term of service of the Committee members expires or
there is any circumstance causing any Committee member to be
unable to hold office before expiration of the term of service, thus
making the number of the Committee members to be lower than
No such event
5(2)(d) the prescribed number of 3 (three) persons, the Board shall appoint √
occurred.
the new Committee member to fill up the vacancy immediately
or not later than 1 (one) month from the date of vacancy in the
Committee to ensure continuity of the performance of work of the
Audit Committee.
The Company Secretary shall act as the Secretary of the Audit
5(2)(e) √
Committee.
Quorum of Audit Committee meeting shall not constitute without
5(2)(f) √
at least 1(one) independent director.
5(3) Chairperson of the Audit Committee
The Board shall select Chairperson of the Audit Committee who will
5(3)(a) √
be Independent Director.
Absence of the Chairperson of the Audit Committee members to
5(3)(b) elect one and the reason of absence of the regular Chairperson √
shall be duly recorded in the minutes.
Chairperson of the Audit Committee shall remain present in the
5(3)(c) √
AGM.
5(4) Meeting of the Audit Committee
The Audit Committee shall conduct at least its four meetings in a
5(4)(a) √
financial year.
REVIEW OF CHAIRMAN, CEO
AND DIRECTORS’ REPORT

Quorum of Audit Committee, presence of 2 or 2/3 members

5(4)(b) whichever is higher where presence of an independent director is √
a must.
5(5) Role of Audit Committee
5(5)(a) Oversee the financial reporting process. √
5(5)(b) Monitor choice of accounting policies and principles. √
78

Compliance Status as
Condition on 31 December 2022
Title Remarks
No. Not
Complied
Complied
Internal Audit and Compliance process to ensure that it is
5(5)(c) √
adequately resourced.
5(5)(d) Oversee hiring and performance of external auditors. √
Hold meeting with the auditors, review the annual financial
5(5)(e) statements before submission to the Board for approval or √
adoption.
Review with the management, the annual financial statements
5(5)(f) √
before submission to the Board for approval.
Review with the management, the Quarterly and half yearly
5(5)(g) √
financial statements before submission to the Board for approval.
5(5)(h) The review adequacy of internal audit function. √
Review the management’s discussion and analysis before
5(5)(i) √
disclosing in the Annual Report.
Review statement of all related party transactions submitted by the
5(5)(j) √
management.
Review management letters or letter of Internal Control weakness
5(5)(k) √
issued by statutory auditors.
Oversee determination of audit fees based on scope and
5(5)(l) √
magnitude and evaluate the performance of external auditor.
Oversee whether IPO or RPO or RSO proceeds utilized as per the
5(5)(m) N/A
published prospectus.
5(6) Reporting of the Audit Committee
5(6)(a) Reporting to the Board of Directors
5(6)(a)(i) The Audit Committee shall report on its activities to the Board. √
5(6)(a)(ii) The Audit Committee shall immediately report to the Board on the following findings, if any:-
No such event
5(6)(a)(ii)(a) Report on conflicts of interests.
occurred.
Suspected or presumed fraud or irregularity or material defect
No such event
5(6)(a)(ii)(b) identified in the internal audit and compliance process or in the
occurred.
financial statements.
Suspected infringement of laws, regulatory compliance including No such event
5(6)(a)(ii)(c)
securities related laws, relies and regulation. occurred.
Any other matter which the Audit Committee deems necessary No such event
5(6)(a)(ii)(d)
shall be disclosed to the Board immediately. occurred.
5(6)(b) Reporting to the Authorities
If the Audit Committee has reported to the Board about anything
which has material impact on the financial condition and results of
operation and has discussed with the Board and the management
that any rectification is necessary and if the Audit Committee finds
No such event
that such rectification has been unreasonably ignored, the Audit
occurred.
Committee shall report such finding to the Commission, upon
reporting of such matters to the Board for three times or completion
of a period of 6 (six) months from the date of first reporting to the
Board, whichever is earlier.
5(7) Reporting to the Shareholders and General Investors
Report on activities carried out by the Audit Committee, including
any report made to the Board under condition No. 5(6)(a)(ii)
No such event
5(7) above during the year, shall be signed by the Chairperson of the
occurred.
Audit Committee and disclosed in the annual report of the issuer
company.
6 NOMINATION AND REMUNERATION COMMITTEE (NRC)
6(1) Responsibility to the Board of Directors
6(1)(a) The company shall have a NRC as a sub-committee of the Board. √

Reliance Insurance Limited

Annual Report 2022
 79

Compliance Status as
Condition on 31 December 2022
Title Remarks
No. Not
Complied
Complied
NRC shall assist the Board in formulation of the nomination criteria
6(1)(b) √
or policy for determining qualifications.
The Terms of Reference of the NRC shall be clearly set forth in
6(1)(c) √
writing.
6(2) Constitution of the NRC
The Committee shall comprise of at least three members including
6(2)(a) √
an Independent Director.
6(2)(b) All members of the Committee shall be non-executive directors. √
Members of the Committee shall be nominated and appointed by
6(2)(c) √
the Board.
Board shall have authority to remove and appoint any member of
6(2)(d) √
the committee.
Board shall fill the vacancy within 180 days of such vacancy in the
6(2)(e) √
Committee.
The Chairperson of the Committee may appoint/co-opt any No such event
6(2)(f)
external expert. occurred.
6(2)(g) The company secretary shall act as the secretary of the committee. √
The quorum of the NRC meeting shall not constitute without
6(2)(h) √
attendance of at least an independent director.
No member of the NRC shall receive any remuneration/advisory,
6(2)(i) √
other than Director’s fees or honorarium form the company.
6(3) Chairperson of the NRC
Board shall select 1(one) member of the NRC to be Chairperson of
6(3)(a) √
the Committee, who shall be an Independent Director.
Absence of chairperson, the remaining members may elect one of
No such event
6(3)(b) them; the reason of absence of the regular Chairperson shall be
occurred.
duly recorded in the minutes.
6(3)(c) Chairperson of the NRC shall attend the AGM. √
6(4) Meeting of the NRC
6(4)(a) The NRC shall conduct at least one meeting in a financial year. √
The Chairperson of the NRC, may convene any emergency meeting
6(4)(b) N/A
upon request by any member of the NRC.
Quorum of NRC meeting, presence of 2 or 2/3 members whichever
6(4)(c) √
is higher, where presence of an independent director is must.
Proceedings of NRC meeting shall be recorded in the minutes and
6(4)(d) √
such minutes shall be confirmed in the next meeting.
6(5) Role of NRC
NRC shall be independent and responsible or accountable to the
6(5)(a) √
Board and to the shareholders.
Level and composition of remuneration is reasonable and sufficient
6(5)(b)(i)(a) to attract, retain and motivate suitable directors to run the company √
successfully.
Relationship of remuneration to performance is clear and meets
6(5)(b)(i)(b) √
appropriate performance benchmarks.
Remuneration to directors, top level executive involves a balance
between fixed and incentive pay reflecting short and long term
6(5)(b)(i)(c) √
REVIEW OF CHAIRMAN, CEO

performance objectives appropriate to the working of the company

AND DIRECTORS’ REPORT

and its goals.

Devising a policy on Board’s diversity taking into consideration
6(5)(b)(ii) age, gender, experience, ethnicity, educational background and √
nationality.
80

Compliance Status as
Condition on 31 December 2022
Title Remarks
No. Not
Complied
Complied
Identifying persons who are qualified to become directors and who
may be appointed in top level executive position in accordance
6(5)(b)(iii) √
with the criteria laid down and recommend their appointment and
removal to the Board.
Formulating criteria for evaluation of performance of independent
6(5)(b)(iv) √
directors and the Board.
Identifying company’s needs for employees at different levels and
6(5)(b)(v) determine their selection, transfer or replacement and promotion √
criteria.
Developing recommending and reviewing annually the company’s
6(5)(b)(vi) √
human resources and training policies.
The company shall disclose the nomination and remuneration
6(5)(c) policy and the evaluation criteria and activities of NRC at a glance √
in its annual report.
7 EXTERNAL OR STATUTORY AUDITORS
7(1) Issuer company shall not engage its external auditors to perform the following:
7(1)(i) Appraisal or valuation services or fairness opinions. √
7(1)(ii) Financial information systems design and implementation. √
Book keeping or other service related to the accounting records or
7(1)(iii) √
financial statements.
7(1)(iv) Broker–dealer services. √
7(1)(v) Actuarial services. √
7(1)(vi) Internal or special audit services. √
7(1)(vii) Any services that the Audit Committee may determine. √
Audit or certification services on compliance of corporate
7(1)(viii) √
governance.
7(1)(ix) Any other service that may create conflict of interest. √
No partner or employees of the External/Statutory Auditors audit
7(2) firms shall possess any share of the company they audit at least √
during the tenure.
Representative of external or statutory auditors shall remain
7(3) √
present in the AGM.
8 MAINTAINING A WEBSITE BY THE COMPANY
The company shall have an official website linked with that of the
8(1) √
stock exchange.
The company shall keep the website functional from the date of
8(2) √
listing.
The company shall make available the detailed disclosures on its
8(3) website as required under the listing regulations of the concerned √
stock exchange(s).
9 REPORTING AND COMPLIANCE OF CORPORATE GOVERNANCE
The company shall obtain a certificate from a practicing Professional
Accountant or Secretary on yearly basis regarding compliance of
9(1) √
conditions of Corporate Governance Code of the Commission and
shall such certificate shall be disclosed in the Annual Report.
The professional who will provide the certificate on compliance of
9(2) Corporate Governance shall be appointed by the Shareholders in √
the AGM.
The directors of the company shall state, in accordance with
9(3) the Annexure- C attached, in the directors’ report whether the √
company has complied with these conditions or not.

Reliance Insurance Limited

Annual Report 2022

Brief Summary of Business & Other
Risks and Managing Such Risks
SUMMARY OF BUSINESS AND OTHER RISKS
Non life insurance industry in 2022 was another challenging
year because of modest premium growth, volatile
financial market, low interests and various regulatory
burdens. Insurance industry has not been able to walk at
BRIEF BUSINESS RISK
UNDERWRITING CREDIT
RISK RISK
CURRENCY OPERATIONAL
RISK RISK
CATEGORIES OF RISKS
Underwriting risk
Underwriting risk is defined as the risk of insured losses
being higher than our expectations. The premium and
reserve risks are significant components of the underwriting
risk. Insurance underwriters evaluate the risk and exposures
of the prospective clients to decide how much coverage
the client should receive, how much they should pay for it,
or whether to even accept the risk and insure them.
The function of the underwriter is to acquire or to “write”—
business that will make the insurance company money,
and to protect the company’s book of business from risks
that they feel will make a loss. In simple terms, it is the
process of issuing insurance policies. More generally, the
insurer’s income is the result of numerous underwriting and
decisions made by employees of the insurer. Each decision
involves a consideration of the expected underwriting
profit, the length of time that the reserve must be held,
and the additional capital needed to protect the insurer’s
solvency. From the owner’s perspective, the results of the
individual underwriting decisions do not matter as long as
the total income is large enough to provide a competitive
return on the investment. But ultimately, the insurer must
make individual underwriting decisions that contribute, in
an actuarial sense, to its overall financial objectives.
81
a steady pace with the economic growth of the country.
Our non life insurance sector continues to be over
crowed in comparison with our neighbour countries.
the non life insurance market remains competitive
because of existence of 46 privately owned insurers and
1 state owned corporation in this market.
MARKET
RISK
LIQUIDITY
RISK
Underwriting decisions would typically be influenced by
PML (Probable Maximum Loss) evaluations, and the amount
of reinsurance ceded on a risk would normally be predicated
on the PML valuation. PML is the anticipated value of the
largest loss that could result from the destruction and the
loss of use of property, given the normal functioning of
protective features (firewalls, sprinklers, and a responsive
fire department, among others, in the case of a fire loss). This
number is usually smaller than the maximum foreseeable
loss, which assumes the failure of all protective features.
Credit risk
Credit risk is termed as the financial loss that the insurer
could incur as a result of a change in the financial situation
of a counter party, such as an issuer of securities or other
debtor with liabilities to the insurer. In addition to credit
risks arising out of investments and payment transactions
with clients, credit risk is assumed through the writing of
REVIEW OF CHAIRMAN, CEO
AND DIRECTORS’ REPORT
insurance and reinsurance business, for example in credit
and financial reinsurance. In assessing credit risk from a
single counter party, an institution should consider two
issues:
Default probability
What is the likelihood that the counter party will default on
its obligation either over the life of the obligation or over
82
some specified horizon, such as a year? Calculated for a
one-year horizon, this may be called the expected default
frequency.
Credit exposure
In the event of a default, how large will the outstanding
obligation be when the default occurs? Recovery rate: In
the event of a default, what fraction of the exposure may be
recovered through bankruptcy proceedings or some other
form of settlement?
Market risk
Market Risk is the risk of economic losses resulting from
price changes in the capital markets including equity
risk, general and specific interest-rate risk, property risk
and currency risk. Market risk is the risk to an institution’s
financial condition resulting from adverse movements
in the level or volatility of market prices of interest rate
instruments, equities and currencies. It is usually measured
as the potential gain/loss in a position/portfolio that is
associated with a price movement of a given probability
over a specified time horizon.
Market risk is that the value of an investment will decrease
due to moves in market factors and the three standard
market risk factors are:
Equity risk
Equity risk is the risk that one’s investments will depreciate
because of stock market dynamics causing one to lose
money.
Interest rate risk
Interest rate risk is the risk that the relative value of an
interest-bearing asset, such as a loan or a bond, will worsen
due to an interest rate increase. In general, as rates rise, the
price of fixed rate bond will fall, and vice versa.
Currency risk
Currency risk is a form of risk that arises from the change in
price of one currency against another. Whenever investors
or companies have assets or business operations across
national borders, they face currency risk if their positions
are not hedged.
Operational risk
Operational risk is the risk of loss resulting from inadequate
or failed internal processes, people and systems or due to
external events. As large operational risk losses continue
to attract media coverage, regulatory concerns about
insurance operational risk models are also on the rise. These
factors are creating a new wave of demand for operational
risk quantification. Internal requirements for better risk
management, as well as higher capital requirements from
new regulatory regimes are leading companies to explore
the risk sensitivity inherent in their methodology and to
optimize capital consumption.
Reliance Insurance Limited
Annual Report 2022
An insurer’s underlying operational risk profile needs to be
thoroughly reviewed across its range of business activities in
order to identify and estimate the model input requirements
Operational risk has been recognized as an important risk
for insurers as well as for banks. But a challenge for insurers
in assessing operational risk is to separate this risk from
the loss experience data typically collection for the other
underwriting, credit and market risk. Insurers are usually
affected by material operational risk exposure, which may
reach the same scale of other risk types (such as insurance
market and credit risks), depending on the specific business.
It is therefore recommended that insurance supervisors,
the insurance industry and the actuarial profession work
together to develop appropriate research to measure
operational risk.
Liquidity risk
Liquidity is the ability to meet expected and unexpected
demands for cash. Specifically, it is a company’s ability to
meet the cash demands of its policy and contract holders
without suffering any (or a very minimal) loss. The liquidity
profile of a company is a function of both its assets and
liabilities. Liquidity risk is the risk that arises from the
difficulty of selling an asset and is inherent in the financial
services. An investment may sometimes need to be sold
quickly. Unfortunately, an insufficient secondary market
may prevent the liquidation or limit the funds that can be
generated from the asset.
An institution might lose liquidity if its credit rating falls, it
experiences sudden unexpected cash outflows, or some
other event causes counterparties to avoid trading with or
lending to the institution. A firm is also exposed to liquidity
risk if markets on which it depends are subject to loss of
liquidity.
In an insurance context, It is important to recognize that
stress liquidity risk management is distinct from asset/
liability management and capital management issues. It is
therefore not generally covered by actuarial opinions and is
not included in risk based capital; rather, it is a separate and
fundamental area of financial risk management. Liquidity
risk is the exposure to loss in the event that insufficient liquid
assets will be available, from among the assets supporting
the policy obligations, to meet the cash flow requirements
of the policyholder obligations when they are due.
OUR PRINCIPAL RISK AND STEPS TO MITIGATE RISK
Due to the nature of business, Reliance actively seeks
to retain risks for which it has to emphasize on effective
enterprise risk and capital management. While the Insurance
Development and Regulatory Authority (IDRA) of Bangladesh
can exercise their immense influence on the operation of
insurance business, Reliance always prefers to pay its due
attention to the volatility of earning through proper decision
making process, improvement of underwriting skills and
compliance with the corporate governance. Reliance leave
no stone unturned to face the challenges set by not only the
customers, investors, rating agencies, and auditors but also
by the regulatory body IDRA.
 83

Reliance Insurance prefers to rightly identify its corporate risks associated with internal and external forces. Such various
internal and external risks as addressed by Reliance Insurance include:

1. Market disruption
Strategic risks
Risk identification Impact/Assessment Mitigation
Increased competition The intense competition in the We have developed strategies that strengthen our
due to large number market could reduce demand relationships with new and existing customers.
of non life insurance for our services and impact on
We continuously monitor competitor’s action in the
competitor in the revenue. Competitors are investing
market and react appropriately with a mind market
industry heavily on marketing. Thus the risk
has a fair and competitive environment.
of competitor disruption is higher
in this market Work is undertaken to improve more in delivering
appropriate services for our largest corporate
customers.

2. Customer Relationship
Operational risks
Risk identification
Failure in providing superior
service to our long-term
customers could diminish our
reputation and hampering our
relationships with customers.
Impact/Assessment
Reliance insurance is operating
in competitive market there is
always inherent risk for all class
of business whether individual or
corporations in this sector.
Mitigation
Superior customer service is the vital
component of our business strategy.
We communicate with our customers
transparently regarding rate of premium
and claims.

3. Adverse political situation

External risks
Risk identification
Adverse political situations can
lead to poor economic condition
for the country.
Impact/Assessment
Reliance could expose to more
operational risk in case of return
from investment if political
situation in the country remain
unstable.
Mitigation
We continuously reviewing the political
situations and always look for opportunities
to do business with existing and potential
customers.
Regular reviews are done by Board in the
Board meeting regarding our business
progress with budgeted.

4. Non-compliance with Laws and regulations

Financial and reputational risks
Risk identification
Reliance must comply with all
sorts of laws being a publicly
listed company.
Impact/Assessment
Non-compliance with regulatory
laws could lead to financial
penalties and reputational damage.
Mitigation
We have efficient employees with special
skills and knowledge who continuously
monitor any non-compliance with different
laws and regulations.
We have ethical culture across the
organization which defines ethical
REVIEW OF CHAIRMAN, CEO
AND DIRECTORS’ REPORT

behaviour must be expected from each

employee.
84
Responsibility to Staff
RESPONSIBILITIES TOWARDS OUR PEOPLE
It’s no secret that retaining top talent is key to promoting
organizational growth. For doing business in our industry,
employees require a different kinds skillset. Most of the times,
it requires long time training, specifically on the job training,
to develop those skillset. On the other hand, recruiting and
new employees is expensive and time consuming. Our
study shows, high employee turnover negatively affects the
productivity and morale of the employees.
Hence, we develop and retain competent human resources
to use their talent and experience for our customers. Our
people with diverse set of experiences and opinion help to
achieve our goal by better understanding the needs of our
customers.
EMPLOYEE ENGAGEMENT
Every year, in the Annual Conference, employees are invited
to participate in various discussions to identify how we are
performing by comparing ourselves with other companies
in non-life insurance industry in Bangladesh and also
with other reputed organizations in different sectors. Our
employee turnover rate was 9.38% in 2022. This shows how
committed our employees are, their desire and willingness
to continue working with us. We provide information to our
employees in variety of ways including our website, e-mail,
meeting, text and print deliverables etc. as well as through
individual teams.
Employee Turnover Rate
8.33% 9.41% 8.16% 9.60% 9.38%
2018 2019 2020 2021 2022
TRAINING AND DEVELOPING FUTURE LEADERS
We help our people to grow their career at Reliance
Insurance Ltd. by developing their individual capabilities
through formal training, on the job experience and regular
counseling with supervisor. We have established in-house
training center where we arrange training session on regular
interval. During COVID period, we have arranged a number
of online training for employees so that our employees
can keep updated with changing business environment.
Also every year, we send quite a number of employees to
outside training houses and abroad for advanced training.
We conduct regular reviews on our employees to identify
high potential future leaders and deploy them with different
responsibilities.
Reliance Insurance Limited
Annual Report 2022
DIVERSE WORKFORCE
Diverse workforce helps us to achieve our goal to meet the
needs of our customers. We have flexible maternity policy
that provides minimum 6 months maternity leave with all
eligible benefits. We believe in treating all employees equally
and offer equal opportunities in all aspects of employment
regardless of race, nationality, gender, age, sex and religion.
39
275
Total Male Total Female
Employees Employees
REWARDING PEOPLE
We reward people based on their performance, potential
and contribution to the company. Line mangers are
empowered to appraise employee performance and to
make performance decisions with higher level approval. We
offer competitive retirement and other benefit which vary
conditions and practices with local markets.
SAFETY WORKPLACE
We do our best to provide our employees a pleasant
workplace experience by promoting a culture where safety
is an integral part of the company. We have pick and drop
facility for our female employees so that they can commute
to and from office without any botheration. We want
everyone working with the company to return home safely
every day. We have group insurance policy, hospitalization
policy for our employees.
Total Number of Employees
340 331 323 320 314
2018 2019 2020 2021 2022
PICK UP AND DROP OFF FACILITY FOR THE HEAD
OFFICE EMPLOYEES
Hassle free commuting is very much important for Dhaka
dwellers. There is no good public transportation for the
females in this city. At Reliance, we understand the importance
of official transportation for our employees. Hence, we have
arranged official transportation for all mid and senior level
employees at RIL Head office and local office.
 85

Contribution to
National Exchequer
Reliance Insurance Limited recognizes that the Company has certain responsibilities to the society for their development and
the development of the nation as a whole. For this, the Company made significant contribution to the Government each year.
The aggregate contribution to national exchequer from commencement up to December 31, 2022 was BDT 8,621.74 million in
the form of by payment of Tax, VAT, Stamp duty and etc.

Contribution to the National Exchequer and to the Economy BDT in Million

394 395 414 503 494 530 569 597 749 684 788 785

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Contribution During
the year 2022
The collective contribution of the company during the year 2022 to the national exchequer was BDT 785.25 million. Out of total
BDT 785.25 million, BDT 377.5 million was made on account of VAT; BDT 98.45 million was made against Source deduction of
tax and VAT, BDT 42.2 million on Stamps duty and BDT 266.75 million on account of corporate income tax.

Contribution during the year 2022 BDT in Million Contribution during the year 2021 BDT in Million

48%, 377.45 48%, 377.87

34%, 266.75 VAT Paid 32%, 249.05 VAT Paid
Income Tax Income Tax
REVIEW OF CHAIRMAN, CEO
AND DIRECTORS’ REPORT

5%, 42.20 8%, 67.31

Stamp Stamp

3%, 20.84 10%, 78.00 3%, 23.11 9%, 70.75

VDS TDS VDS TDS
86
Key Performance Indicators (KPIs)
to Measure the Achievement
against Strategic Objectives
Most significant part of an organization is the key
performance indicators without which the organization
is a boat without a helmsman in a windy river. Presently,
the business environment is also same. There are a lot
of competitors who work critically to defeat the other
competitors in the same line of business. So it is most
important for any organization to identify the key indicators
with highest importance and to measure the performance
through critical analysis and if there found any gaps that
have to be addressed with proper attention. Reliance
Key Strategy of the Company and Basis/
Process of the Resource Allocation
Our Annual Report describes Reliance’s strategic objectives
that is to our current business model and the resource
allocation plans to implement these strategies.
(a) Reliance’s short, medium and long term strategic
objectives Reliance has identified several short,
medium and long-term objectives that may affect
our business operations. Details on page no. 17 under
Strategic Plans of Reliance.
(b) Reliance’s Strategic Focus to implement our
Organizational Goals on page no. 17 of Annual Report
2022.
Strategic
Focus
Reliance Insurance Limited
Annual Report 2022
Insurance Limited with its management team oversee and
analyze the key performance indicators at a regular interval
and take necessary measures for any laps and gaps found
without any delay. Thus it achieves higher business than
last year. On the other hand, it practices to achieve KPIs for
the individual department like Sales/Marketing and Human
Recourses Department arranging necessary training to
increase individual’s performance of the members of the
staff of the company at head office and branches, at home
and abroad through physical and online.
(c) Reliance’s Segment Analysis and industry position
in terms of insurance business through Segment
Analysis we have provided an overview of Reliance’s
Underwriting/Operating Profit, Total Assets and Profit
Before Tax Solo basis. Details on page no. 90 of Annual
Report under Segment Analysis.
(d) An analysis of the Reliance’s performance in
comparison to the Insurance industry in respect of our
major financial indicators, i.e. insurance business has
been detailed in page no. 66 of Annual Report 2022.
(e) Reliance’s current business model related to our
strategic objectives Reliance’s business model defines
the system of transforming inputs, through our
business activities, into outputs and outcomes that
aim to fulfil our strategic purposes and create value
over the short, medium and long term. Details on page
no. 24 of AR-2022 under Our Business Model.
(f) Reliance’s resource allocation plans to implement our
strategic objectives Reliance’s Resource allocation
plan is detailed on page no. 17 of Annual Report-2022
under Strategic objectives.
(g) Reliance’s measure of achievements against target
outcomes Reliance’s achievement against set targets
over some major financial indicators, i.e. underwriting/
operating profit, premium income, reinsurance and
claims have been given in detail and discussed on
page no. 66 under Performance Highlights of the
Annual Report 2022.
 87

Company Strategy on Market

Development, Product & Service
Development
Reliance Insurance MARKET DEVELOPMENT STRATEGIES

Limited (RIL) has a RIL has adopted several strategies to strengthen its market presence in Bangladesh.
These strategies are aimed at engaging the customers and gaining their trust. The
wide range of non-life key strategies for market development adopted by RIL are as follows:
insurance products and
Branding: RIL has adopted a comprehensive branding strategy to create a
services including Fire, positive brand image in the mind of its customers. The company has adopted
Motor, Marine, Health, a proactive approach to create its brand identity and establish its presence in
the market.
and Liability Insurance.
Customer engagement: RIL has adopted a customer-centric approach to
RIL is committed to
build a strong customer base. The company has created a customer-friendly
providing innovative environment and adopted proactive policies to ensure that policy holders are
and customer-focused satisfied with its services.

insurance solutions to
meet the needs of the
customers.
Digital presence: RIL has created a strong digital presence to reach out
to more customers. The company has adopted various digital marketing
strategies such as SEO, online advertising, social media marketing, and
updated the website with the option to purchase insurance online to reach
out to a wider audience.

PRODUCT AND SERVICE DEVELOPMENT STRATEGIES

RIL has adopted several strategies to ensure that its services meet the ever-
changing needs of the customers. The key strategies for service development
adopted by RIL are as follows:

Customer feedback: RIL has adopted a customer feedback system to ensure

that its services are in line with the needs of the customers. The company
collects customer feedback on a regular basis and uses it to improve its
services.

Technology: RIL has adopted advanced technology to ensure that its

services are efficient and customer-friendly. The company has adopted
digital technologies such as automation, etc. to streamline its services and
ensure that its customers get the best service.

Innovation: RIL has adopted an innovation-driven approach to ensure that its

services remain competitive in the market. The company regularly launches
new products and services to meet the changing needs of the customers.

The strategies adopted by RIL for market development and service development
have been effective in helping the company gain a competitive edge in the
insurance market of Bangladesh.
REVIEW OF CHAIRMAN, CEO
AND DIRECTORS’ REPORT
88

Information Technology
System & Control
BACKGROUND
Since the very beginning of the Company till 2004, RIL
had a computerized General Ledger for Central Accounts
Department only. But like most other insurance companies,
its’ operation was based on stand-alone PC’s and manual
system. There was no IT enabled MIS system in place to help
RIL analyze the business figures and to track performance
of products, customers, branches, department and people.
As a result, RIL was severely handicapped in the field of
IT, resulting in inefficiency and improper management
negatively impacting its endeavour to maintain its’ position
at the top of the Insurance fraternity.
FORMATION OF IT DIVISION
Against the backdrop of the above-mentioned situation,
RIL management decided in the year 2000 to introduce a
modern computer system to cater to future prospects of the
Company. As part of that vision, an Information Technology
Division was established to make the dream come true.
The information technology’s role in the business sector
certainly can hardly be over emphasized. It is of utmost
importance, which enables businesses to effectively and
successfully plan, manage, execute strategies which lead to
profit. Therefore, the mission of this Division is to completely
re-engineer and automate RIL’s business processes to
achieve higher productivity, lower cost, improved quality,
enhanced service and efficient management.
IT mainly deals with computer applications which are now
completely automated. The technology has not only made
communication cheaper, but also much faster.
development by IBCS and RIL’s 10 programmers, it was
completed and on 1st of July 2004 it was implemented
successfully at RIL. On the job training was also provided
to all end users.
Key Benefits of RIL IT system: Huge saving in working time
in preparing document, Money Receipt and some large
informative monthly reports with excellent print quality
Getting 450 Plus system generated MIS report which
helps management to take decisions properly and
timely.
Integrated Accounts where 80% Journal Voucher are
passing through system as well as Final Accounts
report like Balance Sheet, Profit & Loss Account,
Revenue Account, General Ledger, Cash Flow and Trial
Balance are generating automatically through system.
Controlling business procurement trough Computer
Integrated Insurance System (CIIS) software Quick
accessing the underwriting documents through CIIS
for departmental integration with UW dept. like Co-
Insurance, Claims, Commission, Re-Insurance and
Accounts department.
A Disaster Recovery Center has been established to
secure the company’s valuable data in a professional
manner.
ON-LINE BRANCHES
Including Head Office and Local Office all the branches are
already connected to the IT Division through optical fiber
and data modem during the last eight years.

Information Technology Division has taken pragmatic FUTURE PLAN

approaches to bring the technological boon and
To expand the IT service, more IT professionals will be
advancement into RIL’s business process to make it more
needed in near future. As well as a call center and a digital
competitive and adaptive for the 21st century.
e-commerce dept. also be required.
The software applications and the hardware devices are
VAT Module to be developed as per requirement of the
the main elements of use in information technology. So
NRB.
a modern and dynamic IT Division was created with two
departments like Hardware and Software including a Two separate APIs to be developed to send data real
structured LAN for its smooth operation and getting the time to the UMP server of IDRA. One API for Cover Policy
technical advantage. Operating the IT system at Reliance, Data and another for Addendum and Endorsement
there are six experienced and professional IT personnel. Data.
A network department to be established for providing
SOFTWARE DEVELOPMENT & IMPLEMENTATION
services to all online branches.
Software is an important integral part of information
An MIS department to be established for providing
technology which relates to computer applications that
essential reports to the management which will be
185 enable a company to generate, store, program, and
helpful for decision making.
retrieve data as and when needed. Like an ERP Software,
a Computer Integrated Insurance System (CIIS) was Higher Training on latest information technology to
jointly developed with the co-operation of IBCS PRIMAX be provided to the IT professionals for development
(Bangladesh) Ltd. Under which all the business process of new software to meet the users demand by using
and functionalities were included. After 14 months of present technology.

Reliance Insurance Limited

Annual Report 2022

Oracle form11g Application to be upgraded with
version oracle fusion middleware 12c.
RIL has highly experienced and trained professionals
working on maintaining and developing the company’s IT
infrastructure. The IT professionals are constantly innovating
and producing in-house programs to meet the needs of the
company’s ever increasing and diversified products and
services industry. IT division has successfully implemented
a Wide Area Network (WAN) to connect all of the branch
offices among the country on real time basis, thereby
providing seamless connectivity and prompt customer
services. We have also purchased a new high configured
server for running our oracle Web-logic application server to
build-up three tier applications and to enhance the facilities
of network & hardware architecture.
We have already upgraded our oracle Front End Application
from 6i to 11g web version and now we are working on Oracle
Web-logic application server for getting more advantage
of modern technology. As a result, our CIIS software can
be accessed from anywhere through web browser even
though smart phone also, as well as our connectivity cost
has already reduced significantly.
RECENT DEVELOPMENT
Two new software modules named AUTO MR System and
quotation and Bill Information System have been developed
and added to our CIIS.
A new API module named APICON is already developed
and implemented for generating e-receipt as required
by IDRA.
Considering the Data security an Oracle data guard
system already implemented, so no data will be lost
Insha-Allah.
A new mobile responsive website is already developed
and hosted.
A new mobile responsive web Application is already
developed and hosted for five modules. To ensure
client service payment gateway implemented also.
89
CONTROL
IT systems and control refer to the mechanism and
procedure put in place to manage and regulate the
operation of information technology systems. Some of the
areas of focus for IT system and control includes:
1. Access Control: RIL has the unique mechanism to
ensure that only authorized individuals have access to
the IT systems and data.
2. Data Security: RIL has regular basis backup policy and
redundant server to secured data.
3. Disaster Recovery: RIL ensures different types of
disaster recovery process to restore data quickly and
effectively.
4. Monitoring and reporting: RIL regularly monitor IT
system and evaluate performance, compliance with
policies and regulations.
5. Compliance: RIL always maintains the compliance with
IDRA, Bangladesh Bank, NBR and others GOVT body as
their need.
Overall, by managing risks and ensuring compliance, RIL
protects data, maintains operation and achieves goals.
CONCLUSION
Information technology provides the ability to process
a large amount of information and in a way which
presents the information in a clear and concise manner
to employees. Anticipated benefits of implementing an
information technology system include improvements in
profit performance, and a higher degree of accuracy among
information within the possible shortest time. Insurance
business has made great strides in risk evaluation as well as
their calculation and reporting abilities. Much of
such analyses can be done by developing new software of
risk infrastructure, data model governance and quality. In
this perspective IT sector of Reliance have been playing an
important role during the last 13 years and contributing to
the economic stability of the company.
CHECKLIST & MISCELLANEOUS
ADDITIONAL DISCLOSURES,
90

Segment Information
The purpose of segments reporting is to enable the users
of Annual Report to evaluate the nature and financial
effects of the business activities in which it engages and
the economic environments in which it operates. For
management, segment reporting is used to evaluate each
segment’s income, expenses, assets, liabilities and so on
in order to assess profitability and risk elements to the
Company. Below, we broke down the Company’s premium
income, claim settlement, management expenses and
profitability by class of business, by geographical area and
division-wise assets allocation.
Most of the analysis is based on accounting data provided
in the financial statements published in years earlier to
2022 or to be published in the year 2022. In 2022, gross
premium income was BDT 3,523.63 million. Figures
below display the evolution of gross premium by type
of general insurance product e.g. Fire, Marine, Motor
and Miscellaneous for years 2017 to 2022. This chart
also indicates that the underlying composition of gross
premiums has a perfect growth throughout the period
except a slight decrease in the year 2020.

BDT in million

SEGMENT 2017 2018 2019 2020 2021 2022

Gross Premium 2,572.67 2,689.26 3,004.14 2,937.12 3,140.35 3,523.63

Fire 1,257.60 1,339.62 1,712.40 1,580.68 1,742.33 1,937.45

Marine 826.56 807.32 779.40 680.76 844.38 955.26

Motor 228.52 243.24 229.44 161.21 152.18 138.61

Misc. 259.99 299.08 282.90 514.47 401.46 492.31

Gross Premium BDT in Million

492.31
Misc.

138.61 1,937.45
Motor Fire

955.26
Marine

Between 2017 and 2022, total claims payouts have decreased 45.50% except 2018 and 2020 and 2021 where claim amount
increased 18.57%, 20.16% and 12.94% respectively compared to previous year. This is illustrated in the following table, which
shows the evolution of claims by all segments together.

BDT Million

SEGMENT 2017 2018 2019 2020 2021 2022

Claim (Net) 207.12 245.59 175.51 210.90 238.18 197.80

Fire 17.18 93.39 45.37 121.21 45.00 64.95

Marine 80.38 66.81 62.65 30.32 88.01 79.69

Motor 55.83 56.31 27.71 25.38 32.42 26.21

Misc. 53.73 29.08 39.78 23.99 72.75 26.95

Reliance Insurance Limited

Annual Report 2022
 91

Calims (Net) BDT in Million

26.95
Misc.

64.95
26.21 Fire
Motor

79.69
Marine

Insurance underwriting results stand for the underwriting profit or loss made by an insurer arising out of its underwriting
activity. It is calculated as the net premium income (i.e. net of reinsurance premiums) less the cost of claims and the insurer’s
expenses in connection with the business operation. A mathematical expression for the underwriting results can be found as
under:

BDT in million

PARTICULARS 2017 2018 2019 2020 2021 2022

Net Premium earned 1,237.65 1,312.49 1,324.70 1,062.50 1,148.87 1,274.24

Add: Re-insurance commission 209.02 203.39 247.82 257.33 273.45 317.62

Total income from operation 1,446.67 1,515.88 1,572.52 1,319.83 1,422.32 1591.86

Less: Expenses

Claims 207.13 245.59 175.51 210.90 238.19 197.80

Management expenses 362.64 427.75 413.61 316.31 347.82 403.30

Agent commission 378.13 392.91 438.57 432.35 186.11 304.87

Unexpired risk reserve-this year 119.88 33.62 8.86 (110 72) 43.10 70.69

Total expenses 1,067.78 1,099.87 1,036.55 848.85 815.22 976.66

Underwriting profit/(loss) 378.89 416.01 535.97 470.98 607.10 615.20

Figure mentioned shows that in recent years there have been a perfect growth in the underwriting results throughout the
period except for pandemic hit year 2020. Now, if we further analyze year 2022 by class-wise, we can see that the major part
of the profit came from Fire and Marine insurance business.

BDT in million

PARTICULARS FIRE MARINE MOTOR MISC. TOTAL

Unexpired risk reserve-Carrying 162.42 206.31 59.47 53.41 481.61

Premium earned 450.26 532.55 135.24 156.19 1,274.24

Add: Re-insurance commission 165.40 115.77 - 36.45 317.62

Total income from operation 615.66 648.32 135.24 192.64 1,591.86

Claims 64.95 79.69 26.21 26.95 197.80

REVIEW OF CHAIRMAN, CEO
AND DIRECTORS’ REPORT

Management expenses 221.67 108.83 16.55 56.25 403.30

Agent commission 137.46 129.11 19.87 18.43 304.87

Unexpired risk reserve @ 40% on premium 180.10 255.62 54.10 62.48 552.30

Total expenses 604.18 573.25 116.73 164.11 1,458.27

Underwriting profit/(loss) 173.90 281.37 77.98 81.95 615.20

92

SEGMENT RESULTS BASED ON GEOGRAPHICAL LOCATION

Further, we can sub-divide the Gross Premium income based on Geographical Location of the Company’s operation:

BDT in million

DIVISION FIRE MARINE MOTOR MISC. TOTAL

Dhaka 1,824.83 799.72 112.54 488.79 3,225.88

Chittagong 81.30 150.84 12.80 2.65 247.59

Rajshahi 13.56 2.42 3.60 - 19.54

Khulna 12.30 2.19 2.53 0.75 17.77

Rangpur 2.22 0.01 0.25 - 2.48

Sylhet 1.03 - 0.45 - 1.48

Mymensingh 2.19 0.08 6.44 0.12 8.83

Total 1,937.45 955.26 138.61 492.31 3,523.63

From the above table, it may be observed that in all perspective, Dhaka Division earned most of the premium income (92%)
whereas Sylhet has the least (0.04%) income. So far as business portfolio is concerned, lion’s share of the premium income
came from Fire business (55%), whereas Motor contributed the lowest (4%).

Division BDT in Million

247.59
3,225.88
Chittagong
Dhaka

1.48
19.58
Sylhet
Rajshahi
2.48
Rangpur

8.83 17.77
Mymensingh Khulna

DIVISION-WISE ASSETS SEGMENT

Segment assets are those operating assets that are employed by a segment in its operating activities and that either are
directly attributable to the segment or can be allocated to the segment on a reasonable basis. As the Dhaka Division earned
most of the premium income, the assets also captured the highest amount (Tk. 1,836.339 mn) whereas the book value of Sylhet
has the lowest (Tk. 0.003 mn) income.

Division-wise assets segment BDT in Million

7.614
1,836.339
Chittagong
Dhaka

0.026
0.430
Sylhet
Rajshahi
0.003
Rangpur

0.200 0.669
Mymensingh Khulna

Reliance Insurance Limited

Annual Report 2022

Impact of Primary
Macroeconomic Variable on
Performance of the Company
Bangladesh economy was
growing consistently high
over a decade crossing
7.0 percent milestone
in FY 2015-16 and 8.0
percent milestone in FY
2018-19. However, the
COVID-19 pandemic
reduced the growth rate
to 3.45 percent in FY
2019-20. The economy
grew by 6.94 percent in
FY 2020-21. According to
the provisional estimates
of BBS, the GDP growth
stood at 7.25 percent in FY
2021-22, 0.05 percentage
point higher than the target
rate and 0.31 percentage
point higher than the
previous fiscal year.
According to provisional
estimate of BBS, per
capita GDP and per capita
national income stood
respectively at US$ 2,723
and US$ 2,824 in FY 2021-
22 compared to US$ 2,462
and US$ 2,591 respectively
in FY 2020-21.
Global Economy - While global
economy was recovering strongly
from the COVID-19 pandemic, the
war in Ukraine posed a setback to the
ongoing recovery.
A rise in the global commodity prices
and sluggish economic activities by
war induced supply chain disruption
is being observed. International
organisations revised their forecasts
for economic growth prospects and
inflations. As per the United Nations
(UN) publication ‘World Economic
Situation and Prospect 2022’, the
global economy grew by 5.5 percent
in 2021, the highest growth rate since
1976, after contracting 3.4 percent in
2020. Global economy is expected to
grow by 4.0 percent in 2022 and 3.5
percent in 2023. In the World Bank’s
Global Economic Prospect, January
2022, the global economic growth
is projected 4.1 and 3.2 percent in
2022 and 2023 respectively, while
growth was estimated 5.5 percent in
2021. Sluggish growth rates between
advanced economies and emerging
and developing economies will
be divergent. Growth in advanced
economies is expected to decline
from 5 percent in 2021 to 3.8 percent
in 2022 and 2.3 percent in 2023.
This growth rate will be sufficient
to restore output and investment
to their pre pandemic trend in
these economies. In emerging and
developing economies, however,
growth is expected to drop from 6.3
percent in 2021 to 4.6 percent in 2022
and 4.4 percent in 2023. The report
stressed that by 2023, all advanced
economies will have achieved a
full output recovery; yet output in
emerging and developing economies
will remain 4 percent below its pre
pandemic trend. For many vulnerable
economies, the setback is even larger:
output of fragile and conflict-affected
economies will be 7.5 percent below
its pre-pandemic trend, and output of
small island states will be 8.5 percent
below. In the World Economic Outlook
93
(WEO) April 2022, International
Monetary Fund (IMF) projected that
the global economy will grow by 3.6
percent both in 2022 and 2023. The
projections for 2022 and 2023 are 0.8
and 0.2 percentage points lower than
in the January 2022 WEO update.
Global growth is forecast to decline
to about 3.3 percent over the medium
term beyond 2023.
MACROECONOMIC SITUATION:
BANGLADESH CONTEXT
Bangladesh economy was growing
consistently high over a decade
crossing 7.0 percent milestone in FY
2015-16 and 8.0 percent milestone in
FY 2018-19. However, the COVID-19
pandemic reduced the growth rate
to 3.45 percent in FY 2019-20. The
economy grew by 6.94 percent in FY
2020-21. According to the provisional
estimates of BBS, the GDP growth
stood at 7.25 percent in FY 2021-22,
0.05 percentage point higher than
the target rate and 0.31 percentage
point higher than the previous
fiscal year. According to provisional
estimate of BBS, per capita GDP and
per capita national income stood
respectively at US$ 2,723 and US$
2,824 in FY 2021-22 compared to
US$ 2,462 and US$ 2,591 respectively
in FY 2020-21. The consumption
increased to 78.44 percent of GDP in
FY 2021- 22 from 74.66 percent in FY
2020-21. The gross investment stood
at 31.68 percent of GDP in FY 2021-
22, where public investment and
private investment accounted for 7.62
percent and 24.06 percent of GDP
respectively. Medium-term forecasts
for GDP growth rates are 7.5 percent
REVIEW OF CHAIRMAN, CEO
in FY 2022-23, 7.8 percent in FY 2023-
AND DIRECTORS’ REPORT
24 and 8.0 percent in FY 2024-25.
Inflation in FY 2020-21 stood at 5.56
percent, which is 0.09 percentage
point lowers than FY 2019-20. Of
which food and non-food inflation
accounted for 5.73 percent and 5.29
percent respectively. Like all other
countries of the world, an upward
94
trend of price level is being observed in Bangladesh as the
economic damages created by COVID-19 pandemic which
is triggered by war in Ukraine. The point-to-point inflation
in March 2022, stood at 6.22 percent, compared to the
inflation rate 5.47 percent in March 2021. The actual budget
deficit for FY 2019-20 and FY 2020-21 stood at 4.7 percent
and 4.3 percent of GDP respectively. The purpose of this
policy stance is to outline monetary and credit programme
for FY 2021-22 based on the evolving internal and external
macroeconomic and financial developments. Global trade
has turned around in 2021 after the effects of COVID-19
pandemic, the Russia-Ukraine conflict has been showing
significant negative impact on world trade. As a result, food
supply chains have been disrupted and Western sanctions
on Russia have led to global trade instability. At the same
time, the prices of petroleum along with commodity prices
are rising, which is also creating inflationary pressures on
the economies. However, Bangladesh’s export growth is on
a positive trend.
In Bangladesh major people are reluctant to insurance. In
practice, people do not know the actual benefits of insurance
rather they possess negative impression on insurance.
There is a huge opportunity to increase penetration of
insurance in Bangladesh. With a view to doing so huge work
plan is required to educate mass people in every corners
of the country about the insurance and benefits of taking
insurance coverage. If we look at the developed countries,
none can take foot step without insurance coverage either
their properties or their lives. Each and every property of
them are covered by insurance and they are habituated to
taking insurance coverage because of the existing system
and culture of taking insurance as their regular phenomenon.
Reliance Insurance Limited
Annual Report 2022
Aggressive as well as comprehensive movement is required
by the concerned ministry of the Government, IDRA,
BIA, Insurance Companies, the Universities, the Schools
and Colleges, the print and electronic medias to make
the people aware of the benefits of taking the insurance
coverage. As we all know that our Father of the Nation was
involved in insurance service, therefore, the Prime Minister’s
Office may also take necessary positive measures to make
the insurance coverages attractive and unavoidable to
every people. In this connection, necessary laws/rules
may also be enacted/issued for mandatory requirement of
insurance coverage by all vehicles- commercial or private,
the building properties and the household assets including
ornaments, electrical equipment, furniture & fixtures linking
those to the wealth statement filed with income tax return
by the tax payers.
Reliance Insurance Limited ensures necessary arrangements
to make the existing insured and the potential insured about
the importance of various products of insurance facilitating
them with the potential benefits of the insurance coverages
for their properties. The company especially takes these
campaigns mainly to rural and vicinity areas as these regions
have the least awareness or understanding of insurance.
Such initiatives also enhance our obligations to rural and
social sectors as required by the provision of Insurance Act
2010. Micro insurance is a relevant tool for expanding policy
coverage. In view of enabling dissemination of insurance
to the lower income segments of the population, Reliance
has taken the project to cover crop insurance in those
remote areas to facilitate the farmers of lower income group
although this product remains very risky for an insurer from
the business perspective.
 95

Sustainability
Reporting

SUSTAINABILITY
REPORTING
96

Sustainability Reporting
INTRODUCTION of the societal and environmental issues and defines the
company’s goal(s).
In the corporate world, the term sustainability has come
into use in a broad spectrum mainly as a result of increased
Corporate social responsibility: Corporate Social
environmental awareness. However, sustainability is wider
Responsibility is concerned with treating the stakeholders
than just environmental issue. Sustainability is a business
of a company or institution ethically or in a responsible
strategy that drives long-term corporate growth and
manner. ‘Ethically or responsible’ means treating key
profitability by obligating the inclusion of environmental
stakeholders in a manner deemed acceptable according
and social issues in the business model. The very purpose of
to international norms. Corporations use CSR as tool to
sustainability is to generate a maximum increase in company,
address societal and environmental issues. Sustainability
consumer, and employee value by embracing opportunities
incorporates societal and environmental issues as building
and managing risks derived from environmental and social
blocks within a business model. Therefore, a sustainable
developments.
business will use some CSR practices. CSR policy functions
as a built-in, self-regulating mechanism whereby a business
Corporate sustainability achieve long-term shareholder
monitors and ensures its active compliance with the spirit of
value by gearing their strategies and management to
the law, ethical standards, national and international norms.
harness the market’s potential for sustainable products
In some models, a firm’s implementation of CSR goes
and services while at the same time successfully reducing
beyond compliance and engages in actions that appear to
and avoiding sustainability costs and risks. The quality of a
further some social good, beyond the interests of the firm
company’s strategy and management and its performance
and that which is required by law.
in dealing with opportunities and risks deriving from
economic, environmental and social developments can
Stakeholders: Stakeholders exist both within a firm and
be quantified and used to identify and select leading
outside. Sustainability focuses on stakeholders rather than
companies for investment purposes.
shareholders.
ATTRIBUTES OF SUSTAINABILITY
Corporate Accountability: This contributes to a sustainable
Sustainable development: This concept balances the business practice in that corporate accountability provides
corporate need for economic growth with environmental a legal and ethical basis for a company to report on its
activism/ protection and societal progress. With regards to impact on society and the environment, in addition to their
sustainability, Sustainable development sets the boundaries financial performance.

SUSTAINABILITY STRATEGY

OPERATIONAL RISK RESOURCE MAINTAIN SUSTAINABLE SUSTAINABLE

MANAGEMENT
Operational risk
management lowers the
cost and risk of compliance.
Additionally, it enables
greater access to markets
by enabling an enterprise
to comply with customer
requirements.
PRODUCTIVITY
Resource productivity
reduces costs through
process efficiency,
including supply chain
optimization. It is critical in
a world with increasingly
volatile commodity pricing.
WORKFORCE
Sustainable workforce both
ensures access to the right
talent in the right market in
the face of demographic
shifts and provides
foresight to meet the
changing requirements of a
new generation of workers.
CONSUMPTION
Sustainable consumption
enables us to generate
brand value and customer
loyalty through more
sustainable operations
and to grow revenues by
entering new markets.

FINANCIAL GOVERNANCE AND CUSTOMER & PRODUCT

Meeting shareholders’
demands for sound
financial returns, long-
term economic growth,
open communication
and transparent financial
accounting.
STAKEHOLDER
Setting the highest
standards of corporate
governance and stakeholder
engagement, including
corporate codes of conduct
and public reporting.
Fostering loyalty by investing in customer
relationship management and product
and service innovation that focuses on
technologies and systems, which use
financial, natural and social resources in an
efficient, effective and economic manner over
the long-term.

Reliance Insurance Limited

Annual Report 2022
 97

Corporate Social Responsibility

Corporate Social Responsibility (CSR) is the practice
of integrating social and environmental goals into
business operations. CSR aim to embrace responsibility
for the company’s actions and encourage a positive
impact through its activities on the environment,
consumers, employees, communities, stakeholders and
all other members of the public sphere who may also
be considered as stakeholders. We are committed to
social and environmental well-being and strive to ensure
sustainable
balanced growth in economic, social and ecological arena.
Reliance Insurance strongly believes that sustainable
growth of an entity is nothing but a counterfeit ideology
without being communally responsible in business conduct
and contribute to the society.
As important as CSR is for the community, it is equally
valuable for a company. CSR activities can help forge a
stronger bond between employees and corporations; boost
morale; and help both employees and employers feel more
connected with the world around them.
As part of the CSR initiatives, Reliance Insurance Ltd.
focuses primarily on underprivileged children and physically
challenges peoples of the society for their physical,
mental and educational improvement. To achieve the said
purpose, RIL worked with the following social development
organizations for the last few years:

BANGLADESH THALASSEMIA HOSPITAL

Bangladesh Thalassemia Hospital is a project of Bangladesh
Thalassemia Samity. It is a unique institution treating
Thalassemia patients. Thalassemia is a deadly disease which
is considered to be a blood related genetic disorder inherited
by children from parents having thalassemia trait. Red blood
cell of a thalassemia patient dies very fast resulting in multiple
complications. Bangladesh Thalassemia Hospital located at
Green Road having requisite facilities to provide transfusion
service to the thalassemia patients. Reliance Insurance Ltd.
Has donated total of Tk. 24,26,000 in the year 2008, 2010,
2012, 2015, 2017, 2019, 2020, 2021 and 2022.

MASTUL FOUNDATION
Mastul Foundation, established in 2013, a social welfare, non- working for the basic rights of underprivileged, destitute,
profit, research-based and social development organization and ethnic minority people. Reliance Insurance Limited has
for the service of distressed humanity. The organization is donated Mastul Foundation Tk. 4,00,000 in the year 2022.

SUSTAINABILITY
REPORTING
98

APON BHUBON
Apon Bhubon is an Old Age Home completely a charity
organization started in 2020 with a few helpless, family less old
mothers lying on the streets. But later the number of helpless,
shelter less, severely sick (due to age) old mothers increased a
lot. Currently around thirty old mothers living in Apon Bhubon
with cost free lodging, food, medical treatment, caring,
nursing of some volunteers. Reliance Insurance Limited has
donated Apon Bhubon Tk. 5,00,000 in the year 2022.

ALOKITO POTH
Alokito Poth, is a non-profitable organization works for the
physically challenged children with disability and autism.
The organization specifically to develop the disable and
autistic children’s talents through healthy relaxation and
proper treatments like speech and language therapy,
occupational & physiotherapy etc. As they are maintaining
of these non-business initiatives, it requires donation to
manage the organization and continue the treatments for
the children with disability and autism. Reliance Insurance
donated Tk. 10,00,000 in the year 2021 and 2022.

SOCIETY FOR HEALTH PROMOTION LINKS

Society for Health Promotion Links (SHPL) is running several
projects on women health over the years including Humaira
Home Care Project (HCCP) in Gaibandha, Community
Maternity Practitioners’ (CMP) course in Rangpur since
2006 and several community base researches to test
community-based health care models. Presently, 55 such
clinics are managed by Society for Health Promotion Links
(SHPL). Reliance Insurance donated SHPL Tk. 6,00,000 in
the year 2022.

Reliance Insurance Limited

Annual Report 2022

MANAGEMENT AND RESOURCES DEVELOPMENT
INITIATIVE (MRDI)
MRDI is a multi-disciplinary, not-for-profit non-government
organization engaged in a wide spectrum of social
development activities. Its objectives are developing the
standard and quality of the media, enhancing physical
and mental well-being of the people and empowerment
of women, adolescents, children, minority and other
marginalized sections of the population. Partners of the
MRDI include well reputed think-tank, research organizations
and development agencies. Besides, it gets support from
international and local donors, embassies and UN agencies.
Reliance Insurance donated a total of Tk. 25,66,000 in the
year 2011, 2012, 2013, 2015, 2016 & 2018 for infrastructure
development of primary schools in off shore areas of Char
Fashion & Bhola.
SAJIDA FOUNDATION
SAJIDA Foundation, established in 1987, is a nongovernment
organization with the aim to ensure health, happiness and
dignity for all. It has been running a program titled Amrao
Manush” since 2008.
The program has been working to bring sustainable change
to the lives of 19,000 children and families with essential
life services through 7 Pavement Dweller Centers. The
COVID-19 pandemic has left a number slum dweller without
an income source and they are struggling to pay for food,
rent and healthcare. SAJIDA has identified 6,000 house-
hold who require support to address some of the hardships
they are facing. Reliance Insurance Limited has donated an
amount of Tk. 11,70,000 for SAJIDA Foundation in 2020 and
2021.
CENTRE FOR DISABILITY IN DEVELOPMENT (CDD)
Centre for Disability in Development (CDD), a Non-Profit
organization, has been working for persons with Disabilities
in Bangladesh since 1996.One of the major areas of their
services is to provide assistive devices to the persons with
disabilities. In 2019, 2020 and 2021 Reliance Insurance
Limited has donated CDD total of Tk. 16,00,104 for their
project titled “Promoting Quality of Life of People with
Disabilities Living in Rural Areas in Bangladesh by providing
Artificial Limbs”.
Contribution to CSR BDT in Million
0.55 0.90 0.99 1.50 1.96 2.43 2.40
2016 2017 2018 2019 2020 2021 2022
99
DISABLED CHILD FOUNDATION
Disabled Child Foundation is a non-Government voluntary
organization established by a group of committed visually
challenged, physical challenged and sighted person in June
2005. Disabled Child Foundation has been working for the
poorest rural children with disabilities (CWDs) and providing
services for them to convert the CWDs into working and
towards self-reliance to lead a decent life with dignity and
courage so that their rights and privileges are recognized
and the opportunity to be ensured to participate into the
mainstream of national development activities. Reliance
Insurance Limited has donated this organization Total of Tk.
16,34,000 in the year 2012, 2014, 2015, 2017, 2019 and 2021.
WALK FOR LIFE PROJECT (GLENCOE FOUNDATION)
Walk for Life is a project of international NGO named
Glencoe Foundation headquartered in Sydney, Australia.
Glencoe Foundation is functioning in five countries including
Bangladesh, Myanmar, Zambia, Vietnam and Australia. Walk
for Life corrects clubfoot disability of the children using the
‘Ponseti method’ which takes up to 5 years to complete.
They are serving to the poor clubfoot patients all over
the country. It has set up a network of 34 clubfoot clinics
(including government medical college hospitals, districts
hospitals and non-govt hospitals) in 29 districts. Since
2009, Walk for Life has enrolled about 24,000 children born
with clubfoot disabilities. Reliance Insurance Limited has
donated total of Tk. 9,38,250 in the year 2018 and 2019.
In addition to the above, in the year 2020 Reliance Insurance
Ltd. donated an amount of Tk. 5,50,000 to Prime Minister’s
Relief & Welfare Fund as immediate response to COVID-19
pandemic situation and Tk. 3,00,000 to Quantum Plus
School (QPS), a sister concern of Quantum Plus Foundation
(QPF). QPF is a social welfare organization working for
the ultra-poor people to ensure their fulfillment of basic
needs like food, medical support and education. Also they
do various charitable activities including free eye camps,
medical camps, blood donation program, winter clothing,
helping flood affected people etc.
Reliance Insurance Limited also supported other
Government charitable initiatives as well as some
humanitarian contributions time to time.
CSR to Net Income (%)
0.20 0.26 0.36 0.41 0.39
SUSTAINABILITY
REPORTING
2018 2019 2020 2021 2022
100
Environment Related Initiatives
Human activity can have harmful effects on ecological
systems, climate and public health. Recognizing this,
Reliance Insurance Limited fully supports the principles of
its commitment to promoting good environmental practice
and sustainability of its activities. RIL committed to providing
quality service in a manner that ensures a safe & healthy
workplace for our employees protecting the environment,
conserving energy and natural resources. With these
policies in place, we believe that we can achieve a healthy
and safe environment. We are committed to do and will:
1. Integrate the consideration of environmental concerns
and impacts into our decision making and activities.
2. Develop and improve operations and technologies to
minimize waste and other pollution, minimize health
and safety risks, and dispose of waste safely and
responsibly.
3. Minimize energy and water use within our premises
and processes in order to conserve supplies and
minimize the consumption of natural resources.
4. As far as possible, we will try to identify and purchase
preferable products, supplies and services for all our
daily operational needs that do the least damage to the
environment.
5. Conserve natural resources by adopting pollution
prevention practices. Extending the life of equipments
through preventive maintenance scheduling,
purchasing and reworking used equipments etc.
6. Comply with all applicable environmental regulations.
7. Establish procedures to ensure that all employees are
knowledgeable of, understand and comply with all
applicable environmental laws and regulations. Train
all our employees on our environmental program and
empower them to contribute and participate.
Environmental & Social Obligations
Insurance policies are intended to help private individuals
and companies to reduce their risk-taking and to protect
against unexpected financial losses. Whether it is a matter
of building a house or running a company, insurance
policies provide increased security to the individual person,
the company and the community in general. Insurance
policies contribute to increased freedom of action and are
therefore an important cornerstone of a community that is
functional well.
In our role as a leading insurance company, we fulfill an
important function in the everyday lives of our large no.
of our clients. We are mindful of the communities around
us and our obligations and abilities to make a positive
contribution to society and the environment that is
sustainable in the long run.
We are actively involved in community issues that have
a natural link to its business. By working with the right
organizations we aim to bring about positive changes for the
communities in which we operate. We strive for supporting
Reliance Insurance Limited
Annual Report 2022
8. Communicate our environmental commitment to our
clients, contractors, suppliers and the community.
9. Strive to continually improve RIL’s environmental
management system and performance & implement
corrective actions.
Sustainable Insurance refers to any form of Insuarnce service
integrating environmental, social and governance criteria
into the business or investment decisions for the lasting
benefit of both clients and society at large. We recognize
that the policies and practices we adopt today will shape
not only our lives but also those of future generations. We
therefore have an opportunity to make a positive contribution
to environmental and social concerns by enacting policies
designed so that our business operations do not degrade
the environment or cause social harm. Such policies not
only indicate positive environmental responsibility, but
also present business opportunities such as innovative
financial products and investments in sustainable forestry
and renewable energy. This will help us better manage our
risks, develop expertise and provide clients with solutions
to evolving exposures. During day to day business Reliance
Insurance heavily contributes towards the carbon emission
in terms of use of paper, electricity, stationary, lighting, air
conditioning, electronic equipment etc. even though this
is moderate compared to other carbon sensitive industries
like steel, oil and gas etc. In the case of insurance, the
direct interface with the environment has considerably
increased due to rapid growth of the Insurance industry.
Energy consumption is the only way to describe our living,
but excessive use is called waste. Prime focus of Reliance is
utilization of solar power, Reduction of Energy & Resource
Consumption; control the consumption of water, waste
management, emission of greenhouse gas etc. As step of
utilization of solar-energy we have already installed solar
panels in our newly build RIL Office Tower.
safety initiatives in the broad meaning of the term in the
communities within which we operate. The objective is, in
the long term, to counteract negative social phenomena
such as traffic accidents, segregation and exclusion. We
also work actively to assist our clients personally to prevent
accidents and incidences of damage.
Our strategy is to reduce the environmental impact
the company has through constant improvements.
Environmental responsibility is an integral part of our
everyday business and all of our employees’ responsibilities
include working to promote a sustainable environment on
a daily basis. Our suppliers are also included in this work
since, when procuring their services and products, we
specify as far as possible requirements for well-functioning
environmental work.
We firmly believe that we have a shared responsibility to
address the key environmental, social and governance
issues relevant to our business and stakeholders.
 101

Certificates

The Certificate from Bangladesh Association of Publicly Listed Companies (BAPLC)

As per BSEC Notification - SEC/CMRRCD/2006-161/324 dated April 11, 2010.

The Certificate from Insurance The Certificate from Bangladesh

Development and Regulatory Insurance Association (BIA)
Authority (IDRA)

Credit Rating Report

Credit Rating Information and Services Limited (CRISL) has announced the Claim paying ability (CPA) rating of
the Company as ‘AAA’ (Triple A indicating highest claim paying ability) based on the audited financial statements
ended December 31, 2021 and other relevant qualitative and quantitative information up-to the date of rating on
December 28, 2022.
SUSTAINABILITY
REPORTING
102

Integrated Reporting
Integrated reporting is a process which results in efficient
communication and leads to value creation over a period of
time. An integrated report is a concise communication about
how an organization’s strategy, governance, performance
and prospects lead to the creation of value over the short,
medium and long term.
The process of integrated representation envisages
evaluation of a company’s performance in terms of both
financial and other value relevant information. Integrated
Reporting provides greater context for performance data,
clarifies how value relevant information fits into operations
or a business, and may help embed long-term approach
into a company’s decision making process. While the
communications that result from Integrated Reporting will
be of benefit to a range of stakeholders, they are principally
aimed at providers of financial capital allocation decisions.
VALUE CREATION THROUGH PROPER STRATEGY
History reveals that the most successful companies
understand their corporate pasts, their corporate values.
They also understand their stakeholders, know what the
market wants, listen to customers and develop products
that even the customer hasn’t yet imagined. So proper
strategy play pivotal role in creation of value in the long run.
Reliance Insurance Limited, being aware of this position.
always focuses on its strategic objectives covering process,
business, people and learning.
VALUE CREATION THROUGH GOOD GOVERNANCE
The maintenance of effective corporate governance remains
a key priority of the Board of Reliance Insurance Limited
(RIL). To exercise clarity about Directors responsibilities
towards the shareholders, corporate governance must be
dynamic and remain focused on the business objectives
of the Company and create a culture of openness and
accountability. RIL considers that its corporate governance
practices are in full compliance with all the aspects of BSEC
Notification No. SEC/CMMRRCD/2006-158/134/Admin/44
dated 07 August 2012. In addition to establishing high
standards of corporate governance, RIL also considers best
governance practices in all of its activities. The independent
role of Board of Directors, separate and independent role
of Chairman and Chief Executive Officer, distinct role of
Company Secretary and Chief Financial officer, different
Board Committees allows RIL to achieve excellence in best
corporate governance practices.
VALUE CREATION THROUGH PERFORMANCE
Real Leaders, who are clear about their company’s reason for
being good corporate citizens, are able to deliver and sustain
both performance and employee satisfaction over time.
The creation of a purposeful culture—one that recognizes
employees for exceeding performance expectations while
modeling the organization’s declared values—is critical
for business leaders in today’s marketplace. Developing
a high performance, values-aligned culture requires four
integrated steps and they are:
1. Clarify performance expectations
2. Define values in behavioral terms and establish
motivation at every level
3. Hold leaders and staff accountable
4. Monitor regularly and adjust strategies as necessary
Some key features of the company for the last few years
are mentioned below which clearly indicate how RIL is
creating value through performance and advancing toward
realization of its corporate objective, vision and mission:

BDT in million

Particulars 2022 2021 2020 2019 2018

Gross premium income 3,523.63 3,140.35 2,937.12 3,004.15 2,689.26

Net premium income 1,274.24 1,148.87 1,062.50 1,324.70 1,312.49

Underwriting profit 615.20 574.52 470.98 535.97 416.01

Investment income 321.97 318.96 377.64 395.06 349.78

Profit before tax 882.68 836.86 770.48 849.76 694.43

Profit after tax 615.93 587.81 548.18 585.42 498.13

Fixed Deposit 3,616.20 3,338.50 300.45 2,754.50 2,314.70

Total assets 11,605.59 11,082.88 10,277.90 8,999.72 8,804.50

Total reserve 6,246.40 6,201.15 5,773.81 5,029.50 5,456.65

Paid up capital 1,051.61 1,051.61 1,051.61 1,051.61 956.01

Shareholders' fund 6,745.71 6,771.16 6,386.90 5,531.88 5,814.10

Reliance Insurance Limited

Annual Report 2022
 103

Financial
Statements

STATEMENTS
FINANCIAL
Independent Auditors’ Report
To the shareholders of Reliance Insurance Limited
Report on the Audit of the Financial Statements

Opinion:

We have audited the financial statements of Reliance Insurance Limited, which comprise the Statement of Financial Position as
at 31 December 2022, the Statement of Comprehensive Income (Profit & Loss) and Other Comprehensive Income, Profit and
Loss Appropriation Account, related Revenue Accounts, Statement of Changes in Equity and Statement of Cash Flows for the
year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the
company as at 31 December 2022, and its financial performance and its cash flows for the year then ended in accordance with
International Financial Reporting Standards (IFRSs), the Companies Act 1994, the Insurance Act 2010, and in some applicable
cases, Insurance Act 1938, the Insurance Rules 1958, the Securities and Exchange Rules 1987 and other applicable laws and
regulations.

Basis for Opinion:

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those
standards are further described in the Auditors’ Responsibilities for the audit of the financial statements section of our report.
We are independent of the Company in accordance with the International Ethics Standards Board for Accountants, Code of
Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the
financial statements in Bangladesh, and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters:

Key audit matters are those matters that, in the auditors’ professional judgment, were of most significance in the audit of the
financial statements of the current period and include the most significant assessed risks of material misstatement (whether
or not due to fraud) identified by the auditors, including those which had the greatest effect on: the overall audit strategy; the
allocation of resources in the audit; and directing the efforts of the engagement team. These matters, and any comments we
make on the results of our procedures thereon, were addressed in the context of our audit of the financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. This is not a complete
list of all risks identified by our audit.

Risk Our response to the risk

Fair Value Reserve: We tested the design and operating effectiveness of key
control as to monitoring valuation and updating of prices of
The company makes a number of investments Tk. the positions held by the company from trusted sources.
2,176,714,350 in the listed securities in stock exchange. Additionally, we performed the following.
Income generated from the investments (realized gain
and dividend received) is credited to the Statement of • Obtained year-end share holding positions from the
Comprehensive Income (Profit and Loss). Unrealized capital company and through directional testing assessed the
gain or loss is transferred to the fair value reserve as per the completeness of the report;
policy of the company and maintain adequate deferred tax
• Ascertained the valuation of the holding as per IFRS 13;
on such reserve.
• Reviewed and challenged the assumptions used for the
This item has significant impact on net asset value of valuation models for any unquoted securities.
the company and equity balances might be prone to
• Recalculated unrealized gain or loss at the yearend;
misreporting as large unreported fall in the value of any
holding may wipe out the value of the portfolio and hamper • Carried out cut-off testing to ensure unrealized gain or loss
the distribution capability of the company was recognized in correct period;
• Obtained the CDBL report and share portfolio and cross
checked against each other to confirm unrealized gain or
loss;
• Finally, assessed the appropriateness and presentation of
disclosures against relevant accounting standards and the
relevant Insurance Act, the Insurance Rules, 1958 and other
applicable rules and regulations and regulatory guidelines.
Note no. 14.02 to the financial statements
Risk Our response to the risk
Premium Income: With respect to premium income in respect of various types of
insurance we carried out the following procedures:
General (non-life) insurance premiums comprise the total
• The design and operating effectiveness of key controls around
premiums received for the whole period of cover provided
premium income recognition process.
by contracts entered into during the accounting period.
• Carried out analytical procedures and recalculated premium
Given the important nature, connections to other items income for the period.
to the financial statements and sensitivity of the item we
• Carried out cut-off testing to ensure unearned premium
believe this area poses high level of audit risk.
income has not been included in the premium income.
• On a sample basis, reviewed policy to ensure appropriate
policy stamp was affixed to the contract and the same has
been reflected in the premium register.
• Ensured on a sample basis that the premium income was
being deposited in the designated bank account.
• Tested on a sample basis to see that appropriate VAT was being
collected and deposited to bank through Treasury Challan.
• Finally assessed the appropriateness and presentation of
disclosures against relevant accounting standards and the
relevant Insurance Act, Insurance Rules, 1958 and other
applicable rules and regulations and regulatory guidelines.

Estimated liability in respect of outstanding claims We tested the design and operating effectiveness of controls
whether due or intimated and claim payment: around the due and intimated claims recording process.
• We additionally carried out the following substantive test
This account represents Tk. 383,772,744 in relation to the
around this item:
claims due or intimated and related recoverable balance
from reinsurers, from the insured and involves significant • Obtained the claims register and tested for completeness
management judgment and risk of understatement. of claims recorded in the register on a sample basis.
In extreme scenario this item may have going concern
• Obtained policy copies and cross checked it with claims.
implications for the company.
• Obtained survey reports and cross checked those against
respective ledger balances and in case of discrepancy
carried out further investigation.
• Obtained and discussed with management about their
basis for estimation and challenged their assumptions
where appropriate.
• Tested claims payments with intimation letter, survey report,
bank statement, claim payment register and general ledger.
• Finally assessed the appropriateness and presentation of
disclosures against relevant accounting standards and the
relevant Insurance Act, Insurance Rules, 1958 and other
applicable rules and regulations and regulatory guidelines.
Note no. 7.00 to the financial statements
Sundry Creditors: We have tested the design and operating effectiveness of
controls around the due and payable recording process.
This account represents Tk. 2,237,315,571 related to balances
• Obtained the creditors register and tested for completeness
payable to various third parties throughout the next fiscal
of credits recorded in the register on a sample basis.
year. Some creditors are various vendors or suppliers and
accrued liabilities. • Obtained bill payable recording process and cross checked it
with ledger.
Moreover, other creditors include payable to provident fund,
• Obtained provisioning policy and cross checked those against
employees’ income tax to government and customers who
respective ledger balances.
made security deposits or other prepayments.
• Obtained and discussed with management about their basis
for provision and challenged their provision creation where
appropriate.
• Reviewed the payables to government for taxes and related
payment calculations.
• Tested a sample of lease payable with intimation letter, report,
bank statement, register and general ledger.

Finally assessed the appropriateness and presentation of

disclosures against relevant accounting standards and the
relevant Insurance Act, Insurance Rules, 1958 and other
applicable rules and regulations and regulatory guidelines.
Note no. 10.00 to the financial statements
Other Information:

The other information comprises all of the information in the Annual Report other than the financial statements and our
auditor’s report thereon. We have not been provided the directors’ report and other information contained within the annual
report except the financial statements to the date of' our auditor's report. We expect to obtain the remaining reports of the
annual report after the date of our auditor's report. Management is responsible for the other information.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above
when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

Our opinion on the financial statements does not cover other information and we do not express any form of assurance
conclusion thereon.

Responsibilities of Management and Those Charged with Governance for the Financial Statements and Internal Controls:

Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs,
the Companies Act 1994, the Insurance Act 2010, the Insurance Rules 1958, the Securities and Exchange Rules 1987 and
other applicable laws and regulations and for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the company's ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements:

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other Legal and Regulatory Requirements:

In accordance with the Companies Act 1994, the Insurance Act 2010, the Insurance Rules 1958, the Securities and Exchange
Rules 1987 and relevant notifications issued by Bangladesh Securities and Exchange Commission, we also report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for
the purpose of our audit and made due verification thereof;

b) In our opinion, proper books of accounts, records and other statutory books as required by law have been kept by the
company so far as it appeared from our examinations of those books;

c) The company management has followed relevant provisions of laws and rules in managing the affairs of the company
and proper books of accounts, records and other statutory books have been properly maintained and (where applicable)
proper returns adequate for the purposes of our audit have been received from branches not visited by us;

d) As per section 63(2) of the Insurance Act 2010, in our opinion to the best of our knowledge and belief and according
to the information and explanation given to us, all expenses of management wherever incurred and whether incurred
directly or indirectly, in respect of insurance business of the company transacted in Bangladesh during the year under
report has been duly debited to the related Revenue Accounts and the Statement of Comprehensive Income of the
company;

e) We report that to the best of our information and as shown by its books, the company during the year under report has
not paid any person any commission in any form, outside Bangladesh in respect of any its business re-insured abroad;

f) The Statement of Financial Position, Statement of Comprehensive Income (Profit & Loss), Profit and Loss Appropriation
Account, related Revenue Accounts, Statement of Changes in Equity and Statement of Cash Flows of the company
together with the annexed notes dealt with by the report are in agreement with the books of account and returns; and

g) The expenditure was incurred for the purpose of the company’s business.

Place: Dhaka Md. Iqbal Hossain FCA

Dated: 12 February 2023 Senior Partner
Enrolment No.: 596 (ICAB)
Zoha Zaman Kabir Rashid & Co.
Data Verification Code (DVC) No. : 2302220596AS288370 Chartered Accountants
108

Reliance Insurance Limited

Statement of Financial Position (Balance Sheet)
as at December 31, 2022

2022 2021
PARTICULARS NOTES
Taka Taka

Shareholders' equity & liabilities

Shareholders' equity 6,745,708,661 6,771,155,137
Share capital 3.00 1,051,610,870 1,051,610,870
Reserves and surplus 4.00 5,694,097,791 5,719,544,267

Liabilities and provisions 4,859,880,909 4,311,726,832

Balance of funds and accounts 5.00 552,298,217 481,609,762
Premium deposit 6.00 1,107,825,378 834,014,271
Unclaimed dividend account 3,368,503 4,473,284
Estimated liability in respect of outstanding claims whether due or 7.00 383,772,744 480,311,996
intimated
Amounts due to other persons or bodies carrying on insurance 8.00 308,216,221 404,926,133
business
Outstanding refundable premium 9.00 523,417 1,350,142
Sundry creditors 10.00 2,237,315,571 1,791,911,433
Deferred tax liabilities 11.00 266,560,863 313,129,812

Total Shareholders' equity & liabilities 11,605,589,570 11,082,881,972

Net Assets Value Per Share (NAV) 28.00 64.15 64.39

The annexed notes 1 to 44 form an integral part of these financial statements

DHAKA, RAJIV PRASAD SHAHA AMIRAN HOSSAIN

FEBRUARY 12, 2023 CHAIRMAN DIRECTOR

Reliance Insurance Limited

Annual Report 2022
 109

Reliance Insurance Limited

Statement of Financial Position (Balance Sheet)
as at December 31, 2022

2022 2021
PARTICULARS NOTES
Taka Taka

Assets
Non-Current assets 5,725,048,256 5,942,570,577

Property, plant and equipments 12.00 1,845,279,350 1,862,952,055

Assets under construction 13.00 1,004,342,639 906,940,841

Investments 14.00 2,875,426,266 3,172,677,682

Current assets 5,880,541,315 5,140,311,395

Stock of stamps and others 15.00 5,768,954 5,493,210

Advances, deposits and prepayments 16.00 1,687,309,982 1,415,143,004

Premium control account 17.00 3,867,853 15,737,072

Interest receivable account 18.00 94,283,197 75,211,033

Amount due from other persons or bodies carrying on insurance 19.00 156,666,446 145,305,435
business

Cash and cash equivalents 3,932,644,883 3,483,421,640

Cash in hand 146,159 78,751

Cash at bank 20.00 316,298,724 144,842,889

Fixed deposit receipt (FDR) 21.00 3,616,200,000 3,338,500,000

Total assets 11,605,589,570 11,082,881,972

Signed as per our separate report of same date STATEMENTS

FINANCIAL

IFTEKHARUL HUQ MD. KHALED MAMUN ZOHA ZAMAN KABIR RASHID & CO.
DIRECTOR CHIEF EXECUTIVE OFFICER CHARTERED ACCOUNTANTS
110

Reliance Insurance Limited

Statement of Comprehensive Income (Profit & Loss)
for the year ended December 31, 2022

2022 2021
PARTICULARS NOTES
Taka Taka
Expenses of management 54,485,233 56,622,312
(Not applicable to any particular fund or account)
Directors' meeting attendance fees 960,000 1,216,000
Advertisement and sign board 3,496,017 3,613,250
Donations 2,400,000 2,469,390
Subscriptions 2,053,804 2,229,535
Legal and professional fees 2,199,809 3,338,373
Depreciation 39,248,450 39,785,076
Employees welfare expense 70,000 130,000
Registration fees 3,611,403 3,435,188
Audit fees 22.00 445,750 405,500
Profit before tax 882,680,865 836,857,434
Income tax expense 266,750,354 249,050,811
Current tax 23.00 271,530,943 256,825,232
Deferred tax 24.00 (4,780,589) (7,774,421)

Profit after tax (transferred to profit & loss appropriation account) 615,930,511 587,806,623

Total 937,166,098 893,479,746

Profit & Loss Appropriation Account

for the year ended December 31, 2022

2022 2021
PARTICULARS NOTES
Taka Taka
490,326,321 477,789,370
Reserve for exceptional losses 4.01 127,423,603 114,886,652
General reserve 100,000,000 100,000,000
Dividend paid 262,902,718 262,902,718
Balance at the end of the year as transferred in balance sheet 4.02 1,386,134,373 1,256,719,109

Total 1,876,460,694 1,734,508,479

Earnings per share (EPS) 27.00 5.86 5.59

The annexed notes 1 to 44 form an integral part of these financial statements

DHAKA, RAJIV PRASAD SHAHA AMIRAN HOSSAIN

FEBRUARY 12, 2023 CHAIRMAN DIRECTOR

Reliance Insurance Limited

Annual Report 2022
 111

Reliance Insurance Limited

Statement of Comprehensive Income (Profit & Loss)
for the year ended December 31, 2022

2022 2021
PARTICULARS NOTES
Taka Taka
Profit/(Loss) transferred from: 615,199,242 574,523,876
Fire revenue account 173,895,808 181,636,321
Marine revenue account 281,373,692 295,917,254
Motor Miscellaneous revenue account 159,929,742 96,970,297

Interest and dividend income 25.00 309,716,128 299,409,658

Other income 26.00 12,250,729 19,546,212

Total 937,166,098 893,479,746

Profit & Loss Appropriation Account

for the year ended December 31, 2022

2022 2021
PARTICULARS NOTES
Taka Taka
Balance brought forward from last year 1,256,719,111 1,142,690,202
Net profit after tax for the year brought down 615,930,511 587,806,623
Transfer of excess depreciation 3,811,071 4,011,653

Total 1,876,460,694 1,734,508,479

Other Comprehensive Income

for the year ended December 31, 2022
2022 2021
PARTICULARS NOTES
Taka Taka
Profit after tax 615,930,511 587,806,623
Other comprehensive income (376,095,231) 59,347,263
Changes in fair value 14.03 (417,883,590) 65,941,404
Deferred tax income on changes in fair value 24.00 41,788,359 (6,594,141)

Total Comprehensive income for the year 239,835,281 647,153,885

STATEMENTS
FINANCIAL

Signed as per our separate report of same date

IFTEKHARUL HUQ MD. KHALED MAMUN ZOHA ZAMAN KABIR RASHID & CO.
DIRECTOR CHIEF EXECUTIVE OFFICER CHARTERED ACCOUNTANTS
112

Reliance Insurance Limited

Consolidated Revenue Account
for the year ended December 31, 2022

2022 2021
PARTICULARS NOTES
Taka Taka

Claims under policies less re-insurances 197,804,547 238,186,694

Claims paid during the year 1,012,639,074 1,216,309,094
Paid/Adjusted on PSB 1,901,442 2,108,808
Recovered/Adjusted on PSB (1,033,637) (1,569,217)
Paid on re-insurance acceptance - -
Recovered/Adjusted on reinsurance ceded (719,163,080) (994,350,744)
Claims outstanding at the end of the year 2,188,826,120 2,272,817,840
Recoverable on reinsurance cedence (1,805,053,376) (1,792,505,844)
Claims outstanding at the end of the previous year (480,311,996) (464,623,243)

Expenses of management 403,298,169 380,397,599

Commission 304,867,620 186,109,409

Profit/(Loss) transferred to Statement of Comprehensive Income 615,199,242 574,523,873

Balance of account at the end of the year 5.00 552,298,218 481,609,763

Total 2,073,467,796 1,860,827,338

The annexed notes 1 to 44 form an integral part of these financial statements

DHAKA, RAJIV PRASAD SHAHA AMIRAN HOSSAIN

FEBRUARY 12, 2023 CHAIRMAN DIRECTOR

Reliance Insurance Limited

Annual Report 2022
 113

Reliance Insurance Limited

Consolidated Revenue Account
for the year ended December 31, 2022

2022 2021
PARTICULARS NOTES
Taka Taka

Balance of Account at the beginning of the year 481,609,763 438,514,537

Premium less reinsurances 1,274,236,031 1,148,866,525

Premium underwritten 3,558,340,719 3,068,909,362
Premium refunded (130,861,107) (25,990,021)
Premium on PSB 96,148,241 97,428,412
Reinsurance premium on PSB (83,951,555) (86,417,972)
Premium on reinsurance accepted - -
Reinsurance premium ceded (2,165,440,267) (1,905,063,256)

Commission on reinsurances 317,622,002 273,446,277

Commission earned on re-insurance ceded 295,520,958 252,160,054
Profit commission 13,273,464 12,703,889
Commission earned on PSB 8,827,580 8,582,334

Total 2,073,467,796 1,860,827,338

Signed as per our separate report of same date STATEMENTS

FINANCIAL

IFTEKHARUL HUQ MD. KHALED MAMUN ZOHA ZAMAN KABIR RASHID & CO.
DIRECTOR CHIEF EXECUTIVE OFFICER CHARTERED ACCOUNTANTS
114

Reliance Insurance Limited

Fire Insurance Revenue Account
for the year ended December 31, 2022

2022 2021
PARTICULARS NOTES
Taka Taka

Claims under policies less re-insurances 64,950,452 45,007,441

Claims paid during the year 826,624,348 989,555,143
Paid/Adjusted on PSB 220,162 273,938
Recovered/Adjusted on PSB - -
Paid on re-insurance acceptance - -
Recovered/Adjusted on reinsurance ceded (663,127,241) (936,807,702)
Claims outstanding at the end of the year 1,681,309,125 1,646,613,645
Recoverable on reinsurance cedence (1,545,998,884) (1,412,536,587)
Claims outstanding at the end of the previous year (234,077,058) (242,090,996)

Expenses of management 221,665,586 210,702,240

Commission 137,458,739 103,924,037

Profit/(Loss) transferred to Statement of Comprehensive Income 173,895,808 181,636,321

Balance of account at the end of the year 5.00 180,103,223 162,417,465

as shown in the Balance Sheet being reserve for unexpired risks @ 40%
of premium income of the year

Total 778,073,808 703,687,505

The annexed notes 1 to 44 form an integral part of these financial statements

DHAKA, RAJIV PRASAD SHAHA AMIRAN HOSSAIN

FEBRUARY 12, 2023 CHAIRMAN DIRECTOR

Reliance Insurance Limited

Annual Report 2022
 115

Reliance Insurance Limited

Fire Insurance Revenue Account
for the year ended December 31, 2022

2022 2021
PARTICULARS NOTES
Taka Taka

Balance of Account at the beginning of the year 162,417,465 160,480,780

Premium less reinsurances 450,258,057 406,043,663

Premium underwritten 1,928,273,167 1,746,180,887
Premium refunded (5,383,227) (17,513,714)
Premium on PSB 14,557,192 13,666,213
Reinsurance premium on PSB (11,701,874) (12,560,801)
Premium on reinsurance accepted - -
Reinsurance premium ceded (1,475,487,201) (1,323,728,922)

Commission on reinsurances 165,398,286 137,163,062

Commission earned on re-insurance ceded 164,033,484 135,388,410
Profit commission - -
Commission earned on PSB 1,364,802 1,774,651

Total 778,073,808 703,687,505

Signed as per our separate report of same date STATEMENTS

FINANCIAL

IFTEKHARUL HUQ MD. KHALED MAMUN ZOHA ZAMAN KABIR RASHID & CO.
DIRECTOR CHIEF EXECUTIVE OFFICER CHARTERED ACCOUNTANTS
116

Reliance Insurance Limited

Marine Insurance Revenue Account
for the year ended December 31, 2022

2022 2021
PARTICULARS NOTES
Taka Taka

Claims under policies less re-insurances 79,689,961 88,006,949

Claims paid during the year 128,448,655 138,614,830
Paid/Adjusted on PSB 894,183 174,430
Recovered/Adjusted on PSB (370,603) (28,961)
Paid on re-insurance acceptance - -
Recovered/Adjusted on reinsurance ceded (56,035,839) (57,543,042)
Claims outstanding at the end of the year 263,432,800 277,077,000
Recoverable on reinsurance cedence (88,404,617) (108,802,382)
Claims outstanding at the end of the previous year (168,274,618) (161,484,927)

Expenses of management 108,825,673 102,007,529

Commission 129,113,995 44,152,297

Profit/(Loss) transferred to Statement of Comprehensive Income 281,373,692 295,917,254

Balance of account at the end of the year 5.00 255,623,302 206,307,844

as shown in the Balance Sheet being reserve for unexpired risks @ 40% 184,616,959 169,535,921
of premium income of the year (Marine Cargo)

as shown in the Balance Sheet being reserve for unexpired risks @ 71,006,343 36,771,922
100% of premium income of the year (Hull)

Total 854,626,623 736,391,872

The annexed notes 1 to 44 form an integral part of these financial statements

DHAKA, RAJIV PRASAD SHAHA AMIRAN HOSSAIN

FEBRUARY 12, 2023 CHAIRMAN DIRECTOR

Reliance Insurance Limited

Annual Report 2022
 117

Reliance Insurance Limited

Marine Insurance Revenue Account
for the year ended December 31, 2022

2022 2021
PARTICULARS NOTES
Taka Taka

Balance of Account at the beginning of the year 206,307,844 168,619,362

Premium less reinsurances 532,548,741 460,611,726

Premium underwritten 941,606,415 822,527,835
Premium refunded (12,234,795) (714,309)
Premium on PSB 25,891,955 22,564,115
Reinsurance premium on PSB (20,204,200) (16,845,796)
Premium on reinsurance accepted - -
Reinsurance premium ceded (402,510,634) (366,920,119)

Commission on reinsurances 115,770,038 107,160,784

Commission earned on re-insurance ceded 100,569,292 93,026,542
Profit commission 11,556,607 11,066,285
Commission earned on PSB 3,644,139 3,067,958

Total 854,626,623 736,391,872

Signed as per our separate report of same date STATEMENTS

FINANCIAL

IFTEKHARUL HUQ MD. KHALED MAMUN ZOHA ZAMAN KABIR RASHID & CO.
DIRECTOR CHIEF EXECUTIVE OFFICER CHARTERED ACCOUNTANTS
118

Reliance Insurance Limited

Miscellaneous Insurance Revenue Account
for the year ended December 31, 2022

2022 2021
PARTICULARS NOTES Motor Misc. Total Total
Taka Taka Taka Taka
Claims under policies less re-insurances 26,214,219 26,949,915 53,164,134 105,172,305
Claims paid during the year 28,164,755 29,401,316 57,566,071 88,139,121
Paid/Adjusted on PSB 90,464 696,633 787,097 1,660,440
Recovered/Adjusted on PSB - (663,034) (663,034) (1,540,256)
Paid on re-insurance acceptance - - - -
Recovered/Adjusted on reinsurance - - - -
ceded
Claims outstanding at the end of the year 28,432,000 215,652,195 244,084,195 349,127,195
Recoverable on reinsurance cedence - (170,649,875) (170,649,875) (271,166,875)
Claims outstanding at the end of the (30,473,000) (47,487,320) (77,960,320) (61,047,320)
previous year

Expenses of management 16,553,061 56,253,849 72,806,910 67,687,830

Commission 19,866,553 18,428,333 38,294,886 38,033,075

Profit/(Loss) transferred to Statement of 77,981,917 81,947,824 159,929,742 96,970,297

Comprehensive Income

Balance of account at the end of the year 5.00 54,095,232 62,476,462 116,571,693 112,884,454
as shown in the Balance Sheet being
reserve for unexpired risks @ 40% of
premium income of the year

Total 194,710,982 246,056,383 440,767,365 420,747,961

The annexed notes 1 to 44 form an integral part of these financial statements

DHAKA, RAJIV PRASAD SHAHA AMIRAN HOSSAIN

FEBRUARY 12, 2023 CHAIRMAN DIRECTOR

Reliance Insurance Limited

Annual Report 2022
 119

Reliance Insurance Limited

Miscellaneous Insurance Revenue Account
for the year ended December 31, 2022

2022 2021
PARTICULARS NOTES Motor Misc. Total Total
Taka Taka Taka Taka
Balance of Account at the beginning 59,472,903 53,411,551 112,884,454 109,414,395
of the year

Premium less reinsurances 135,238,079 156,191,154 291,429,233 282,211,135

Premium underwritten 144,855,346 543,605,791 688,461,137 500,200,640
Premium refunded (8,826,149) (104,416,936) (113,243,085) (7,761,998)
Premium on PSB 2,580,913 53,118,181 55,699,094 61,198,084
Reinsurance premium on PSB (96,477) (51,949,004) (52,045,481) (57,011,375)
Premium on reinsurance accepted - - - -
Reinsurance premium ceded (3,275,554) (284,166,878) (287,442,432) (214,414,215)

Commission on reinsurances - 36,453,678 36,453,678 29,122,431

Commission earned on re-insurance - 30,918,182 30,918,182 23,745,102
ceded
Profit commission - 1,716,857 1,716,857 1,637,604
Commission earned on PSB - 3,818,639 3,818,639 3,739,725

Total 194,710,982 246,056,383 440,767,365 420,747,961

Signed as per our separate report of same date

STATEMENTS
FINANCIAL

IFTEKHARUL HUQ MD. KHALED MAMUN ZOHA ZAMAN KABIR RASHID & CO.
DIRECTOR CHIEF EXECUTIVE OFFICER CHARTERED ACCOUNTANTS
 120

Reliance Insurance Limited

Statement of Changes in Equity

Annual Report 2022

for the year ended December 31, 2022
(Amount in Taka)

Reliance Insurance Limited

Revaluation Fair Value Capital Exceptional General Retained
Particulars Share Capital Total
Reserve Reserve Reserve Loss Reserve Reserve Earnings
Balance as on 01 January, 2021 1,051,610,870 1,404,523,781 1,380,852,028 2,379,041 1,403,598,046 1,250,000 1,142,690,202 6,386,903,969
Dividend for the year 2020 (Cash) - - - - - - (262,902,718) (262,902,718)
Net profit after tax - - - - - - 587,806,623 587,806,623
Appropriation for the period - - - - 114,886,652 - (114,886,652) -
Transfer of excess depreciation - (4,011,653) - - - - 4,011,653 -
Changes in fair value - - 59,347,263 - - - - 59,347,263
Transfer to General Reserve 100,000,000 (100,000,000) -
Balance as on 31 December, 2021 1,051,610,870 1,400,512,128 1,440,199,291 2,379,041 1,518,484,698 101,250,000 1,256,719,111 6,771,155,137

Balance as on 01 January, 2022 1,051,610,870 1,400,512,128 1,440,199,291 2,379,041 1,518,484,698 101,250,000 1,256,719,111 6,771,155,137
Dividend for the year 2021 (Cash) - - - - - - (262,902,718) (262,902,718)
Net profit after tax - - - (2,379,041) - - 615,930,511 613,551,470
Appropriation for the period - - - - 127,423,603 - (127,423,603) -
Transfer of excess depreciation - (3,811,070) - - - - 3,811,070 -
Changes in fair value - - (376,095,231) - - - - (376,095,231)
Transfer to General Reserve 100,000,000 (100,000,000) -
Balance as on 31 December, 2022 1,051,610,870 1,396,701,059 1,064,104,060 - 1,645,908,302 201,250,000 1,386,134,372 6,745,708,661

The annexed notes 1 to 44 form an integral part of these financial statements

Signed as per our separate report of same date

DHAKA, RAJIV PRASAD SHAHA AMIRAN HOSSAIN IFTEKHARUL HUQ MD. KHALED MAMUN ZOHA ZAMAN KABIR RASHID & CO.
FEBRUARY 12, 2023 CHAIRMAN DIRECTOR DIRECTOR CHIEF EXECUTIVE OFFICER CHARTERED ACCOUNTANTS
 121

Reliance Insurance Limited

Statement of Cash Flows
for the year ended December 31, 2022

2022 2021
PARTICULARS NOTES
Taka Taka

Cash flows from operating activities

Collection from premium & others 4,205,770,482 3,772,434,340
Payment for management expenses, reinsurance, claim & others (2,920,115,194) (2,348,584,680)
VAT paid to Government (375,381,872) (376,780,685)
Income-tax paid and deducted at sources (215,718,708) (209,682,959)
Net cash generated from operating activities 694,554,708 837,386,017

Cash flows from investing activities

Payment for acquisition of assets (57,947,819) (3,011,856)
Payment for assets under construction (97,401,798) (188,569,723)
Proceeds from disposal of fixed assets 1,710,849 1,312,463
Increse/(Decrease) in investment-shares (68,240,637) (1,825,542)
Dividend received 65,811,471 60,812,295
Interest received 221,482,495 188,536,002
Payment for Government Treasuary Bond (73,759,034) (195,476,951)
Payment for LBSL Zero Coupon Bond 27,020,506 (74,294,408)
Proceeds from SIBL Mubaraba Bond - 10,000,000
Net cash used in investing activities 18,676,034 (202,517,720)

Cash flows from financing activities

Dividend paid (264,007,499) (267,988,918)
Net cash used in financing activities (264,007,499) (267,988,918)

Net changes in cash & cash equivalents for the period 449,223,243 366,879,381
Cash and cash equivalents at the beginning of the year 3,483,421,640 3,116,542,260
Closing cash and cash equivalents at the end of the year 3,932,644,883 3,483,421,640

Net operating cash flow per share (NOCFPS) 29.00 6.60 7.96

DHAKA, RAJIV PRASAD SHAHA AMIRAN HOSSAIN

FEBRUARY 12, 2023 CHAIRMAN DIRECTOR
STATEMENTS
FINANCIAL

IFTEKHARUL HUQ MD. KHALED MAMUN ZOHA ZAMAN KABIR RASHID & CO.
DIRECTOR CHIEF EXECUTIVE OFFICER CHARTERED ACCOUNTANTS
122

Reliance Insurance Limited

Classified Summary of Assets
as at December 31, 2022
(Amount in Taka)

2022 2021
PARTICULARS
Book value Book value
Non current assets:
Property, plant and equipments
Land 1,459,036,803 1,459,036,803
Building 327,792,278 349,138,504
Furniture & fixtures 14,118,247 14,735,861
Office equipments & IT installation 10,471,265 10,014,004
Vehicles 33,714,508 29,841,534
Telephone installation 146,250 185,350
Sub total 1,845,279,351 1,862,952,056

Assets under construction 1,004,342,639 906,940,841

Investments
Bangladesh Govt. Treasury Bond 651,438,014 577,678,981
LBSL Zero Coupon Bond 47,273,902 74,294,408
Shares of listed companies 1,993,092,785 2,378,774,843
Shares of unlisted companies 1,569,450 1,569,450
Mutual funds 182,052,115 140,360,000
Sub total 2,875,426,266 3,172,677,682

Current assets
Fixed deposits & SND accounts with bank 3,924,928,617 3,480,921,329
Cash in hand & Current account with bank 7,716,266 2,500,311
Premium control account 3,867,853 15,737,072
Interest accrued & overdue 2,007,616 2,007,616
Interest accrued but not due 92,275,581 73,203,417
Sundry debtors 1,687,309,982 1,415,143,004
Stock of stationery 915,089 954,152
Stamps in hand 4,853,865 4,539,058
Amount due from other persons or bodies carrying on insurance business 156,666,446 145,305,435
Sub total 5,880,541,315 5,140,311,394

Total assets 11,605,589,570 11,082,881,972

DHAKA, RAJIV PRASAD SHAHA AMIRAN HOSSAIN

FEBRUARY 12, 2023 CHAIRMAN DIRECTOR

IFTEKHARUL HUQ MD. KHALED MAMUN ZOHA ZAMAN KABIR RASHID & CO.
DIRECTOR CHIEF EXECUTIVE OFFICER CHARTERED ACCOUNTANTS

Reliance Insurance Limited

Annual Report 2022
 123

Reliance Insurance Limited

Notes to the Financial Statements
as at and for the year ended December 31, 2022

1.00 General Information

1.01 Legal form of the Company
Reliance Insurance Limited was incorporated as a public limited company in Bangladesh in the year 1988 under
the Companies Act 1913 (present 1994). The Company, within the stipulations laid down by Insurance Act 2010
and directives as received from Insurance Development & Regulatory Authority (IDRA) time to time, provides Non-
life Insurance services. The Company is listed with Dhaka Stock Exchange and Chittagong Stock Exchange as a
publicly traded company. The Company carries its insurance activities through thirty two branches throughout the
country.
1.02 Principal activities and nature of operations
The principal activity of the company continued to be carrying on non-life insurance business. There were no
significant changes in the nature of the principal activities of the Company during the year 2022 under review.
1.03 Reporting period
The financial statements of the Company consistently cover one calendar year starting from 1st January to 31st
December.
1.04 Date of Financial Statements authorized for issue
The financial statements of the Company for the year ended December 31, 2022 were authorized for issue on
February 12, 2023 in accordance with a resolution of the Board of Directors at it’s 273rd meeting.
2.00 Summary of significant accounting and related policies
2.01 Basis of preparation
The Financial Reporting Act 2015 (FRA) was enacted in 2015 under which the Financial Reporting Council (FRC) has
been formed but it is yet to issue financial reporting standards for public interest entities as per the provisions of
the FRA and hence International Financial Reporting Standards (IFRSs) as approved by the Institute of Chartered
Accountants of Bangladesh (ICAB) are still applicable.
The financial statements have been prepared in accordance with the International Financial Reporting Standards
(IFRS), the Insurance Act 2010, the Companies Act 1994, Insurance Rules 1958, the Securities and Exchange Rules
1987 and other applicable laws and regulations in Bangladesh.
In certain cases, where rules and regulations are yet to be framed by the Insurance Development and Regulatory
Authority (IDRA), the relevant provisions of the Insurance Act 1938 have been resorted to. Accordingly, the balance
sheet has been prepared in accordance with the regulations contained in part I of the First Schedule and as per
Form "A" as set forth in Part II of that schedule and the Revenue Account of each class of non-life insurance business
has been prepared in accordance with the regulations as contained in Part I of the Third Schedule and as per Form
"F" as set forth in Part II of that Schedule of the Insurance Act 1938 as amended.
The financial statements have been prepared on a historical cost basis, except for financial assets and contingent
consideration that have been measured at fair value where applicable. The financial statements provide comparative
information in respect of the previous period and have been prepared on going concern basis. Cash flows from
operating activities are prepared under direct method as prescribed by the Securities and Exchange Rules 1987.
2.02 Premium recognition
Premium is recognized when insurance policies are issued, but the premium of Company’s share of public sector
insurance business (PSB) is accounted for in the year in which the statements of account from Sadharan Bima
Corporation are received. Up to 31 December 2022 statements of account for the period July 01 ,2021 to June 30,
2022 have been received and, accordingly, the Company’s share of PSB for that period has been recognized in
these financial statements.
2.03 Accounting estimates
Preparation of financial statements requires Management to make judgments, estimates and assumptions that
affect the application of policies and reported amount of assets and liabilities, income and expenses. The estimates
and underlying assumptions are based on historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of making the judgments amount carrying
values of assets and liabilities that are not readily apparent from other sources. While Management believes that
the amounts included in the financial statements reflect the company’s best estimates and assumptions, actual
result could differ from estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions of the accounting
STATEMENTS
FINANCIAL

estimates are recognized in the period in which the estimates are revised.
Significant areas requiring the use of Management estimates in these financial statements relate to the useful life of
depreciable assets. However, assumptions and judgments made by Management in the application of accounting
policies that have significant effect on the financial statements are not expected the result in material adjustment
to the carrying amount of assets and liabilities in the next year.
124

2.04 Functional and presentation currency

The financial statements are presented in Bangladeshi Taka which is the Company’s functional currency.
2.05 Materiality and aggregation
Each material class of similar items is presented separately in the financial statements. Items of a dissimilar nature
or function are presented separately unless they are immaterial.
2.06 Foreign currency transaction
Transactions in foreign currencies are translated into Bangladeshi Taka at the exchange rate prevailing on the date
of transactions in accordance with IAS- 21 "The Effects of Changes in Foreign Exchange Rate." Foreign currency
balance, if any, has been translated into taka at prevailing rate of cutoff date and the difference between translation
value or realization value and initial recognition is recognized in the face in statement of comprehensive income
(profit and loss). Insurance contracts which were underwritten in foreign currency are converted to Bangladeshi
Taka at the rate of exchange prevailing at the time of underwriting and revenue is recognized accordingly.
2.07 Property, plant and equipment
2.07.01 Recognition and measurement
Property, plant and equipment are recognized if it is probable that future economic benefits associated with
the asset will flow to the company and cost of the asset can be measured reliably. Items of property, plant and
equipment are measured at cost less accumulated depreciation and accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed
assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset
to a working condition for its intended use and the cost of dismantling and removing the items and restoring the
site on which they are located.

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the
proceeds from disposal with the carrying amount of property, plant and equipment. If sale of any revalued assets,
the relevant amount included in the revaluation reserve will be transferred to retained earnings.

2.07.02 Subsequent cost

The cost of replacing a component of an item of property, plant and equipment is recognized in the carrying
amount of the item if it is probable that the future economic benefits associated with the part will flow to the
company and its cost can be measured reliably. The carrying amount of the replaced component is de-recognised.

2.07.03 Revaluations
Revaluation on freehold land and building is performed by Qualified Professionals. The frequency of revaluations
depends upon the movements in the fair values of the items of property, plant and equipment being revalued. The
revaluation surplus is recognised in the net carrying amount of the assets and is transferred to revaluation reserve
after restating the asset at the revalued amount. Any revaluation gain is directly recognised in the Statement
of Other Comprehensive Income but if any revaluation loss arises which has been previously recognized in the
revaluation reserve is debited to the extent of any credit balance existing in the revaluation reserve in respect of
that asset.

2.07.04 Depreciation

Depreciation of an asset begins when it is available for use, i.e. when it is in the location and condition necessary
for it to be capable of operating in the manner intended by management. Depreciation of an asset ceases at the
earlier of the date that the asset is classified as held for sale (or included in a disposal group that is classified as held
for sale) in accordance with IFRS-5 and the date that the asset is derecognized. Asset category-wise depreciation
rates are as follows:

Item Rate
Office Buildings 5%
Furniture & Fixtures 10%
Motor Vehicles 20%
Office & Electrical Equipments 15%
Miscellaneous Items 20%

2.07.05 De-recognition
An item of property, plant and equipment is de-recognised upon disposal or when no future economic benefits
are expected from its use. Any gain or loss arising on de-recognition of the asset is included in the statement of
comprehensive income in the year the asset is de-recognized.
2.07.06 Impairment of assets
The carrying amounts of the company’s non financial assets, other than deferred tax assets are reviewed at each reporting
date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable
amount is estimated. An impairment loss is recognized if the carrying amount of an asset or its cash generating unit
exceeds its estimated recoverable amount. Impairment losses are recognised in the statement of comprehensive income.
Considering the present conditions of the assets, management concludes that there is no such indications exist.

Reliance Insurance Limited

Annual Report 2022
 125

2.07.07 Leases
IFRS 16: Leases, is applicable to present the lease contracts. The company has been using a good number of office
spaces at different part of the country including remote areas to provide insurance services. IFRS 16 requires that
all contracts containing a lease to be recognized on the balance sheet as a right-of-use asset and lease liability with
exemption of short-term and low-value leases.
In compliance with the standard, the company has selected to use the exemptions in the standard for short-term
leases and low value leases on account of its office rent agreements. As such, the lease payments associated with
them are recognized as an expenses from short term lease as office rent.

2.08 Financial instruments

IFRS 9 sets out requirements for recognizing and measuring financial assets, financial liabilities and some contracts to
buy or sell non-financial items. This standard replaces IAS 39 Financial Instruments: Recognition and Measurement.

The details of new significant accounting policies and the nature and effect of the changes to previous accounting
policies are set out below.

2.08.01 Classification and measurement of financial assets

IFRS 9: Financial Instruments- largely retains the existing requirements in IAS 39 categories for financial assets
of held to maturity, loans and receivables and available for sale. The adoption of IFRS 9 has not had a significant
effect on RIL accounting policies related to financial assets. IFRS 9 uses a single approach to determine whether
a financial asset is measured at amortised cost or fair value; the approach in IFRS 9 is based on how an entity
manages its financial instruments (its business model) and the contractual cash flow characteristics of the financial
assets. Gains and losses on those financial assets classified as measured at fair value are either recognised in profit
or loss or in other comprehensive income.

All equity instruments are measured at FVTPL unless they are not held for trading and an entity has elected to
measure them at FVTOCI, in profit or loss except where an entity has elected to recognize gains and losses on an
equity investment in other comprehensive income.

2.08.02 Equity investments at FVOCI

These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless
the dividend clearly represents a recovery of part of the cost of the investment. Unrealized gain and losses are
recognized in OCI and are never reclassified to profit or loss.
2.09 Employee benefits

2.09.01 Defined contribution plan

The Company operates a provident fund, recognized by the Income Tax Authorities. Confirmed employees of the
company are eligible for the said provident fund. Employees of the Company will contribute ten percent of their
basic salary and the employer will make a matching contribution. The provident fund is wholly administered by a
Board of Trustees and no part of the fund is included in the assets of the company.

2.09.02 Defined benefit plan

The Company also operates a funded gratuity scheme in accordance with the provisions specified in IAS 19. The fund is
approved by the National Board of Revenue (NBR), administered by the Board of Trustees and invested separately from
the Company’s assets. Employees are entitled to benefit at a graduated scale based on the length of service. The length
of service for the purpose of gratuity shall be reckoned from the date of joining in the regular service of the company.
Calculation of gratuity is made on the basis of last drawn basic salary. An employee will receive one month’s basic salary
for each completed year of service if he/she completed five years & above but less than ten years of continuous services
and two month’s basic salary for each completed year of service if he/she completed ten years & above of continuous
services. Gratuity will be payable only on their separation from the company.

2.09.03 Other benefits

In addition to the above, Reliance Insurance Limited providing other benefits to its employees like Performance
Linked Variable Bonus (PLV), Group Life Scheme (GLS), Group Medical Benefits plan, House Building Loan Scheme
and Car/Motor Cycle Loan Scheme subject to fulfillment of certain terms and conditions.

2.10 Investment income recognition

2.10.01 Interest and dividend

Interest on debentures, Bangladesh Government Treasury Bond and FDRs are recognized on accrual basis. Interest
on STD/SND account, cash dividend on investment in shares and other income are recognized as and when
amount credited to our account. For stock dividend that received by the company against its investment, number
of shares increased and average cost of investment decreased.
STATEMENTS

2.10.02 Other Income

FINANCIAL

Other income is recognized on an accrual basis. Net gains and losses of the revenue nature on the disposal of
Property, Plant & Equipment and other non-current assets including investments have been accounted for in the
Statement of Comprehensive Income, having deducted from the proceeds on disposal, the carrying amount of
the assets and related selling expenses.
126

2.11 Expenses and taxes

2.11.01 Recognition of expenses

Expenses are recognised in the Statement of Comprehensive Income on the basis of a direct association between
the cost incurred and the earning of specific heads of income. All expenditure incurred has been charged to the
Statement of Comprehensive Income in the running of the business and in maintaining the property, plant and
equipment in a state of efficiency.

2.11.02 Borrowing costs

Any borrowing costs that are directly attributable to the acquisition and construction of a qualifying asset form part
of the cost of that asset and, therefore, would be capitalised.
2.12 Income tax
Income tax expense comprises current tax and deferred tax. Income tax expense is recognized in the Statement
of Comprehensive Income.

2.12.01 Current tax

The tax currently payable is based on taxable profits for the year. Taxable profits differs from profits as reported
in the statement of comprehensive income, because it excludes items of income or expenses that are taxable or
deductible in other year or are never taxable or deductible. Company’s liability for current tax is calculated using
tax rates that have been enacted through the Finance Act immediately before the balance sheet date.

Provision for income tax has been made at best estimate keeping in view the provisions of Income Tax Ordinance
1984 and amendment made thereto from time to time. Applicable rate of income tax for the company is 37.5%.

2.12.02 Deferred tax

Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit and are accounted for
using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable temporary
difference. Deferred tax assets are generally recognized for all deductible temporary differences to the extent
that it is probable that taxable profits will be available against which such differences can be utilized. Deferred tax
is charged or credited to the Statement of Comprehensive Income for items other than Other Comprehensive
Income. Deferred tax for items of equity is charged or credited to the Other Comprehensive Income.

2.13 Reserve or contingencies accounts

2.13.01 Reserve for exceptional losses

Company sets aside 10% of the net premium income of the year from the balance of the profit as Reserve for
exceptional losses as per Para 6 of 4th schedule of the Income Tax Ordinance 1984 to meet the exceptional losses.
Detail calculations have been given in Note 4.01.

2.13.02 Revaluation reserve

The Revaluation surplus is transferred to revaluation reserve after restating the asset at the revalued amount. Any
revaluation loss is directly recognized in the Statement of Comprehensive Income but any revaluation loss arising
from an asset which has been previously recognized in the revaluation reserve is debited to the extent of any credit
balance existing in the revaluation reserve in respect of that asset. The excess depreciation, if any, of revalued asset,
difference between depreciation at revalued amount and depreciation on original cost of that asset, is transferred,
after making appropriate adjustment of deferred tax from revaluation reserve to retain earning.

2.14 Segment reporting

A business segment is a distinguishable component of the Company that is engaged in providing services that are
subject to risks and returns that are different from those of other business segments. The Company accounts for
segment reporting of operating results using the classes of business. The performance of segments is evaluated
on the basis of underwriting results of each segment. The Company has four primary business segments for
reporting purposes namely fire, marine, motor and miscellaneous.

2.15 Balance of Fund

Company created a fund for un-expired risk @40% of net premium income on Fire , Marine Cargo, Motor and
Miscellaneous business and 100% on Marine Hull Business in respect of future claims and expenses which may
arise after closing of books.

2.16 Premium Deposit

Premium Deposit comprises premium received against cover notes for which policies have not been issued by the
end of the year. While the risks against non-marine and marine hull have been assumed from the issuance of cover
notes, risks against marine cargo have not been assumed until shipment advices are provided and accordingly,
policies are issued.

Reliance Insurance Limited

Annual Report 2022
 127

2.17 Amount due to other Persons or Bodies carrying on Insurance Business

Any amount is payable to foreign reinsurers, Shadharon Bima Corporation and other private sector insurance
companies in respect of reinsurance arrangement with them. It also comprise includes all the amount payable to
local insurance companies under co insurance premium.

2.18 Premium control

Premium control account is the outstanding premium only for Policy in respect of Fire, Marine and Miscellaneous
class of business as at reporting date under Bank Guarantee which will be subsequently received and adjusted.

2.19 Sundry creditors

Sundry creditors are current liabilities and provisions that the company has to pay in due course. It also includes
Company’s liability for current tax which is calculated using tax rates that have been enacted at the balance sheet
date.

2.20 Outstanding refundable premium

Outstanding refundable premium are the amounts that are refundable to the beneficiary where no policy or cover
note were issued.

2.21 Collection control account

Collection control account is the outstanding premium for both Policy and Cover Note in respect of Fire, Marine
and Miscellaneous class of business as at reporting date under Bank Guarantee which will be subsequently
received and adjusted.

2.22 Earnings per share

The Company presents basic earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by
dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number
of ordinary shares outstanding during the period. Detail computations have shown in Note 27.

2.23 Related party disclosure

Reliance Insurance Limited, in normal course of business, carried out a number of transactions with other entities
that fall within the definition of related party contained in IAS 24: Related Party Disclosures. All transactions involving
related parties arising in normal course of business are conducted on an arm’s length basis at commercial rates on
the same terms and conditions as applicable to the third parties. Detail of the related party disclosures have been
given in Note 31.

2.24 Branch accounting

Reliance Insurance Limited now has thirty two branches with no overseas branch as of December 31, 2022.
Accounts of the branches are maintained at the head office from which these accounts are drawn up.
2.25 Event after the reporting period

Proposed dividend
The proposed dividend is not recognized as a liability in the Balance Sheet in accordance with the IAS 10: Events after
the Balance Sheet. Dividend payable to the Company’s shareholders are recognized as a liability and deducted from
shareholders equity in the period in which the shareholders right to receive payment is established. International
Accounting Standard (IAS) 1: Presentation of Financial Statements also requires the dividend proposed after the
Balance Sheet date but before the financial statements are authorized for issue, be disclosed in the notes to the
financial statements. Accordingly, the Company has disclosed the same in the notes to the financial statements.

All material events occurring after the balance sheet date has been considered and where necessary, adjusted for
or disclosed in the Note 44.

2.26 Status of Compliance of International Accounting Standards and International Financial Reporting
Standards

In preparing Financial Statements, we applied following IAS and IFRS:

Name of the IAS IAS No. Status of application

Presentation of Financial Statements 1 Applied
Inventories 2 Applied
STATEMENTS
FINANCIAL

Statement Cash Flows 7 Applied

Accounting Policies, Changes in Accounting Estimates and Errors 8 Applied
Event after the Reporting Period 10 Applied
Income Taxes 12 Applied
Property, Plant & Equipment 16 Applied
128

Name of the IAS IAS No. Status of application

Employee Benefits 19 Applied
Accounting for Govt. Grants and Disclosure of Govt. Assistance 20 N/A
The Effects of Changes in Foreign Exchange Rates 21 Applied
Borrowing Costs 23 N/A
Related Party Disclosures 24 Applied
Accounting and Reporting by Retirement Benefit Plans 26 N/A
Separate Financial Statements 27 N/A
Investment in Associates and Joint Ventures 28 N/A
Financial Reporting in Hyperinflationary Economies 29 N/A
Financial Instruments: Presentation 32 Applied
Earnings per Share 33 Applied
Interim Financial Reporting 34 Applied
Impairment of Assets 36 Applied
Provisions, Contingent Liabilities and Contingent Assets 37 Applied
Intangible Assets 38 Applied
Financial Instruments: Recognition & Measurement 39 N/A
Investment Property 40 N/A
Agriculture 41 N/A

Name of the IFRS IFRS No. Status of application

First time Adoption of IFRSs 1 N/A
Share-based Payment 2 N/A
Business Combinations 3 N/A
Insurance Contracts 4 Applied
Non-current Assets Held for Sale and Discontinued Operation 5 N/A
Exploration for and Evaluation of Mineral Resources 6 N/A
Financial Instruments: Disclosure 7 Applied
Operating Segments 8 Applied
Financial Instruments 9 Applied
Consolidiated Financial Statements 10 Applied
Joint Arrangements 11 N/A
Disclosure of Interests in Other Entities 12 N/A
Fair Value Measurement 13 Applied
Regulatory Deferral Accounts 14 N/A
Revenue from Contracts with Customers 15 Applied
Leases 16 Applied

2.27 Provisions
A provision is recognized in the statement of financial position when the company has a legal or constructive
obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation. Provision is ordinarily measured
at the best estimate of the expenditure required to settle the present obligation at the reporting date. Where the
company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset
but only when the reimbursement is virtually certain. If the effect of the time value of money is material, provisions
are discounted.

2.28 Financial Risk Management:

The company management has overall responsibility for the establishment and oversight of the company’s risk
management framework. Risk management policies, procedures and systems are reviewed regularly to reflect
changes in market conditions and the company’s activities.

2.29 General:
The financial statements are prepared in Bangladeshi Taka (BDT), rounded off to the nearest taka. These are
prepared on the historical cost basis and therefore, do not take into consideration the effect of inflation.

Previous year’s figures have been rearranged, whenever necessary, to conform to current year's presentation,
espiciallay Tk. 32,580,140 of bonus was shown in the statement of comprehensive income in the previous year, has
now been rearranged in the revenue accounts proportionately and current year presentation has also been done
in the same line.

Reliance Insurance Limited

Annual Report 2022
 129

3.00 Authorized, Issued, Subscribed and Paid up Capital:

2022 2021
Particulars
% Taka % Taka
Authorized:
200,000,000 ordinary shares of Tk.10 each 2,000,000,000 2,000,000,000
Group A—Sponsors:
48,052,230 ordinary shares of Tk.10 each fully 45.694 480,522,300 45.694 480,522,300
paid in cash
Issued, Subscribed and Paid up Capital:
Group B—Others:
57,108,857 ordinary shares of Tk.10 each fully 54.306 571,088,570 54.306 571,088,570
paid in cash
1) Employees 0.022 230,076 0.022 230,076
2) Bank, ICB’s MF, Insurance companies, BDBL 1.471 15,469,920 1.532 16,113,610
3) ICB Investors’ accounts 0.179 1,880,500 0.163 1,715,510
4) General public 52.634 553,508,074 52.589 553,029,374
Total 100.000 1,051,610,870 100.000 1,051,610,870

Classification of shareholders’ by holding

The distribution schedule of shareholdings as on December 31, 2022 was as under:

Number of Holders Total Holding %

Holdings
2022 2021 2022 2021
Group-A
100,000-4,000,000 13 3 23.52 8.01
4,000,001-8,000,000 4 6 22.18 37.68
Group-B
10-5,000 2322 2114 2.10 2.08
5,001-10,000 232 250 1.68 1.86
10,001-50,000 177 181 3.80 3.74
50,001-100,000 30 32 2.05 2.24
100,001-300,000 25 22 3.30 3.28
300,001-600,000 12 9 4.75 3.27
600,001-8,000,000 20 21 36.63 37.84
Total 2835 2638 100 100

Break up of share issued since inception

As per MOA & Initial Public

Year Bonus Right Total
AOA Offer (IPO)
1988 3,000,000 3,000,000
1995 3,000,000 3,000,000
2003 3,000,000 3,000,000
2004 3,000,000 3,000,000
2005 3,000,000 3,000,000
2007 3,000,000 3,000,000
2008 5,400,000 5,400,000
2009 7,020,000 7,020,000
2010 10,647,000 10,647,000
2011 6,160,050 6,160,050
2012 4,722,705 4,722,705
2013 7,792,463 7,792,463
2014 8,961,332 8,961,332
STATEMENTS
FINANCIAL

2015 10,305,532 10,305,532

2016 7,900,908 7,900,908
2017 8,690,999 8,690,999
2018 9,560,099 9,560,099
Total 3,000,000 3,000,000 99,161,087 - 105,161,087
130

2022 2021
PARTICULARS NOTES
Taka Taka
4.00 Reserves & Surplus
Reserve for exceptional losses 4.01 1,645,908,301 1,518,484,698
Capital reserve 4.05 - 2,379,041
Retained earnings 4.02 1,386,134,372 1,256,719,111
General reserve 4.04 201,250,000 101,250,000
Revaluation reserve 4.03 1,396,701,059 1,400,512,128
Fair value reserve 1,064,104,060 1,440,199,291
Total 5,694,097,791 5,719,544,267

4.01 Reserve for Exceptional Losses

10% of the net premium was transferred to reserve for exceptional losses as per paragraph 6 of the Fourth Schedule
of Income Tax Ordinance 1984. Details calculation is as under:

Opening balance 1,518,484,697 1,403,598,045

Add: Provision for the year 127,423,603 114,886,652
Closing balance 1,645,908,301 1,518,484,698

The class wise summary of reserve for exceptional loss provision is as follows:

Particulars Fire Marine Miscellaneous 2022 2021

Gross premium 1,937,447,132 955,263,575 630,917,146 3,523,627,853 3,140,347,752
Add: Reinsurance - - - - -
premium
Acceptance
Less :Reinsurance (1,475,487,201) (402,510,634) (287,442,432) (2,165,440,267) (1,905,063,256)
Premium on Ceded
Less :Reinsurance (11,701,874) (20,204,200) (52,045,481) (83,951,555) (86,417,972)
Premium on PSB
Net Premium 450,258,057 532,548,741 291,429,233 1,274,236,031 1,148,866,524
Rate of Provision 10% 10% 10% 10% 10%
Reserve for 45,025,806 53,254,874 29,142,923 127,423,603 114,886,652
exceptional loss
provision

4.02 Retained earnings

Opening balance 1,256,719,109 1,142,690,203
Dividend for the year (Cash) (262,902,718) (262,902,718)
Net profit after tax 615,930,511 587,806,623
Reserve for Exceptional Losses (127,423,603) (114,886,652)
1,482,323,301 1,352,707,456
Transfer of excess depreciation 3,811,071 4,011,653
Transfer to General Reserve (100,000,000) (100,000,000)
Closing balance 1,386,134,372 1,256,719,111

4.03 Revaluation Reserve (Land & Building)

Opening balance 1,400,512,128 1,404,523,781

Less: Transfer of excess depreciation (3,811,070) (4,011,653)
Closing balance 1,396,701,059 1,400,512,128

4.04 General reserve

Opening balance 101,250,000 1,250,000

Add: Transfer from retained earnings 100,000,000 100,000,000
Closing balance 201,250,000 101,250,000

4.05 Captial reserve

Opening balance 2,379,041 2,379,041

Add: Transfer to other income (Note-26) (2,379,041) -
Closing balance - 2,379,041

Reliance Insurance Limited

Annual Report 2022
 131

2022 2021
PARTICULARS NOTES
Taka Taka
5.00 Balance of funds and accounts
Balance of fund and account consist as follows:
Business
Fire Insurance 180,103,222 162,417,465
Marine Insurance 255,623,302 206,307,843
Misc. Insurance 116,571,693 112,884,454
Total 552,298,217 481,609,762

6.00 Premium Deposit

The below mentioned amount includes premium received against cover notes for which policies have not been
issued within December 31, 2022. While the risks against non-marine and marine hull have been assumed from the
issuance of cover notes, risks against marine cargo have not been assumed until shipment advices are provided
and accordingly, policies are issued.
The class wise summary of the premium deposit is as follows:
Marine cargo Insurance 1,107,825,378 834,014,271
1,107,825,378 834,014,271
7.00 Estimated Liability in respect of Outstanding Claims whether due or intimated
Fire 135,310,241 234,077,058
Marine cargo 160,062,727 153,529,852
Marine hull 14,965,456 14,744,766
Motor 28,432,000 30,473,000
Miscellaneous 45,002,320 47,487,320
Total 383,772,744 480,311,996
All the claims against which the Company received intimations within 31st December 2022 have been taken into
consideration while estimating the liability in respect of outstanding claims.
8.00 Amount due to other Persons or Bodies carrying on Insurance Business
Co-insurance premium payable 21,022,313 10,767,539
Co-insurance salvage payable 88,418 88,418
Green Delta Insurance Co. Ltd. for reinsurance ceded 11,706,612 11,706,612
Reinsurance creditors /Payable-SBC 274,699,199 381,663,885
Port Folio Premium Withdrawal/Transfer (Cedence) 695,099 695,099
Port Folio Loss Withdrawal/Transfer (Cedence) 4,580 4,580
Total 308,216,221 404,926,133
9.00 Outstanding Refundable Premium
Fire 16,107 38,166
Marine cargo 327,437 1,311,976
Miscellaneous 179,873 -
Total 523,417 1,350,142
10.00 Sundry Creditors
Audit fee payable 2,783,251 3,203,834
Agent Commission Payable 50,000,481 -
Premium received in advance 300,134,519 208,587,045
VAT payable (6,959,095) (6,407,911)
Bills payable 42,508,643 36,159,283
Tax payable on miscellaneous items 2,820,042 7,003,733
VAT payable on money receipt 19,897,249 16,027,032
VAT payable on miscellaneous items 2,210,770 2,977,815
Payable to Provident Fund - 155,112
Insurance stamps on deposit premium 100,131,879 83,025,476
Current tax liabilities 10.01 1,650,168,077 1,378,637,133
Employees’ income tax (454,736) (23,188)
(Short)/Excess collection of premium 467,369 315,454
Security deposit 69,150,573 57,871,101
STATEMENTS
FINANCIAL

Group hospitalization insurance premium payable (293,004) (392,294)

Audio-Video Payable 11,740 -
Liability for stamp purchase 4,737,813 4,771,807
2,237,315,571 1,791,911,433
132

2022 2021
PARTICULARS NOTES
Taka Taka
10.01 Current Tax Liabilities
Opening balance 1,378,637,133 1,389,285,950
Add: Provision made during the year 271,530,943 256,825,232
Less: Adjustment made during the year - (267,474,048)
Closing balance 1,650,168,077 1,378,637,133

11.0 Deferred tax liabilities

Opening balance 313,129,812 314,310,092
Add : Provided for the year (46,568,949) (1,180,280)
Closing balance 266,560,863 313,129,812

i. Assets without revaluation carrying amount

Accounting base 270,386,017 281,961,009
Tax base 240,617,462 226,469,764
29,768,555 55,491,245
Tax Rate 37.50% 37.50%
Closing Deferred Tax Liability 11,163,208 20,809,217
OpeningDeferred Tax Liability 20,809,217 21,200,231
Deferred Tax Expense /(Income) (9,646,009) (391,014)

ii. Interest Receiveable

Accounting base 94,283,197 75,211,033
Tax base - -
94,283,197 75,211,033
Tax Rate 37.50% 37.50%
Closing Deferred Tax Liability 35,356,199 28,204,137
OpeningDeferred Tax Liability 28,204,137 33,180,552
Deferred Tax Expense /(Income) 7,152,062 (4,976,415)

iii. Revalued assets carrying amount - Building

Accounting base 115,856,531 121,954,243
Tax base - -
115,856,531 121,954,243
Tax Rate 37.50% 37.50%
Closing Deferred Tax Liability 43,446,199 45,732,841
Opening Deferred Tax Liability 45,732,841 48,139,833
Deferred Tax Expense /(Income) (2,286,642) (2,406,992)

iv Assets carrying amount - Land

Accounting base 1,459,036,803 1,459,036,803
Tax base - -
1,459,036,803 1,459,036,803
Tax Rate 4% 4%
Closing Deferred Tax Liability 58,361,472 58,361,472
Opening Deferred Tax Liability 58,361,472 58,361,472
Deferred Tax Expense /(Income) - -

v. Unrealized gain and loss of marketable securities

Accounting base 1,182,337,844 1,600,221,436
Tax Base - -
1,182,337,844 1,600,221,436
Tax Rate 10.00% 10.00%
Closing Deferred Tax Liability 118,233,785 160,022,144
OpeningDeferred Tax Liability 160,022,144 153,428,004
Deferred Tax Expense /(Income) (41,788,359) 6,594,141

Deferred tax liabilities 266,560,863 313,129,811

Deferred Tax Expense /(Income) (46,568,948) (1,180,280)

Reliance Insurance Limited

Annual Report 2022
 133

2022 2021
PARTICULARS NOTES
Taka Taka
12.00 Property, plant and equipment
Cost:
Balance at the beginning of the year 2,166,298,157 2,149,189,999
Addition during the year 21,588,568 21,629,764
Sales/Adjustment during the year (5,042,559) (4,521,606)
Balance at the year end 2,182,844,166 2,166,298,157

Accumulated Depreciation:
Balance at the beginning of the year 303,346,102 266,871,496
Addition during the year 39,248,450 39,785,076
Sales/adjustment during the year (5,029,737) (3,310,470)
Balance at the year end 337,564,816 303,346,102
Carrying Amount 1,845,279,350 1,862,952,055

Detail schedule of property, plant and equipment is given in Annexure - A.

13.00 Assets under construction

Balance at the beginning of the year 906,940,841 718,371,118
Addition during the year 97,401,798 188,569,723
Balance at the year end 1,004,342,639 906,940,841

Assets under construction are stated at cost. As these are expenditure of a capital nature directly incurred in
property, plant and equipment, waiting for capitalization.

13.01 Current Status of Reliance Insurance Office Tower

The structural works including curtain glass installation of 14-Storied RIL Tower, Gulshan-1, Dhaka have been
completed already. Finishing of civil works, commissioning HVAC, Sub-station equipment, Diesel Generator, Lifts
along with DESCO approval process are in progress. As per revised project schedule, the construction of the building
will be finished by April 2023. The BOD of RIL has decided to occupy the top four floors for use of RIL Head Office and
Local Office. Interior decoration work in these floors are also in progress. Interior works of these floors are expected
to be completed within May 2023 and, our Head Office & Local Office will be shifted there accordingly.

14.00 Investments
Investment at amortized cost 14.01 698,711,916 651,973,389
Fare value through other comprehensive income 14.02 2,176,714,350 2,520,704,293
2,875,426,266 3,172,677,682

14.01 Investment at amortized cost.

Investments with fixed maturity that the management has the intent and ability to hold to maturity are classified as
held to maturity. During the year 2022 Company hold the following investments:

BD Govt. Treasury Bond (5 & 10 yrs) 651,438,014 577,678,981

LBSL Zero Coupon Bond 47,273,902 74,294,408
698,711,916 651,973,389

14.02 Fair value through other comprehensive income

Fair value through other comprehensive income are those non-derivative investments that are designated as
available for sale or are not classified in any other category. These are primarily those investments that are intended
to be held for an undefined period of time or may be sold in response to the need for liquidity are classified as
Fair value through other comprehensive income. The Company follows trade date accounting for 'regular way
purchase and sales' of investments. As of December 31, 2022 Company designated the following shares as Fair
value through other comprehensive income. Details are as follows:
STATEMENTS
FINANCIAL
134

as on December 31, 2022 as on December 31, 2021

Sl.
No. of Value at Fair market Name of the Company No. of Value at Fair market
No.
Shares cost value Shares cost value
Unquoted share:
1 571,181 1,569,450 1,569,450 Central Depository BD Ltd. (CDBL) 571,181 1,569,450 1,569,450
Quoted share:
1 26,082 7,191,284 6,786,536 ACI Ltd. 37,640 10,896,937 10,742,456
2 93,000 10,462,210 7,905,000 ACME Laboratories Ltd. 73,000 8,489,409 6,314,500
3 - - - ACME Pesticide Ltd. 13,380 133,800 358,584
4 - - - Associated Oxygen Ltd. 1,056 9,778 44,246
5 53,000 1,581,997 1,139,550 Baraka power Ltd. 53,500 1,581,997 1,273,300
6 4,000 4,990,603 3,809,200 BATA Shoe 4,000 4,990,603 3,867,600
7 25,000 13,469,773 12,967,500 BATBC 15,000 8,023,884 9,534,000
8 108,055 7,809,115 5,391,945 BBS Cables Ltd. 102,910 7,809,115 5,752,669
9 70,000 9,784,265 8,092,000 Beximco Ltd. - - -
10 460,487 26,063,616 17,728,750 BRAC Bank Ltd. 428,360 26,063,616 23,688,308
11 176,000 15,338,343 11,246,400 BSRM Steel Ltd. 176,000 15,338,343 12,513,600
12 325,581 10,432,713 7,097,666 City Bank Ltd. 289,406 10,432,713 7,900,784
13 12,075 1,491,311 1,128,342 Confidence Cement Ltd. 12,075 1,491,311 1,471,943
14 100,000 4,208,588 3,660,000 DESCO 100,000 4,208,588 3,550,000
15 403,704 4,694,000 4,917,115 Ekush 1st Unit 203,704 2,200,000 3,000,560
16 250,000 2,500,000 2,505,000 Ekush Growth Fund - - -
17 41,781 1,880,145 1,441,445 Esquire Knit & Composite Ltd. 41,781 1,880,145 1,462,335
18 73,850 3,847,632 3,308,480 GPS Ispat Ltd. 49,261 2,611,966 2,610,833
19 5,000,000 50,000,000 50,000,000 Grameen Bank AIMS MF - - -
20 47,101 16,560,484 13,499,147 GrameenPhone Ltd. 47,101 16,560,484 16,461,800
21 78,750 9,421,416 6,898,500 ICB 49,975 6,129,066 6,191,903
22 29,098,891 262,719,780 1,353,098,432 IDLC Finance Ltd. 27,713,230 262,719,780 1,671,107,769
23 43,911 3,886,517 1,936,475 Ifad Autos Ltd. 41,820 3,886,517 1,978,086
24 - - - IPDC Finance Ltd. 100,000 3,695,891 3,860,000
25 - - - Krishibid Agro Ltd. 86,526 865,260 865,260
26 310,000 33,861,916 20,088,000 Lafarge Holcim Bd Ltd. 310,000 33,861,916 22,041,000
27 417,125 13,534,695 10,845,250 LankaBangla Finance Ltd. 417,125 13,534,695 15,558,763
28 3,000 4,163,271 4,193,100 Linde BD Ltd. - - -
29 38 3,800 3,800 Maq Enterprise Ltd. 38 3,800 3,800
30 - - - Masterfeed Agro Ltd. 26,648 266,480 255,821
31 146,000 35,596,953 28,995,600 Meghna Petrolium 146,000 35,596,953 28,732,800
32 188,511 21,421,661 16,343,904 MJL BD Ltd. 188,511 21,421,661 16,645,521
33 - - - Mostafa Metal Ind. Ltd. 26,960 269,600 288,472
34 38,115 985,279 636,521 MTBL 34,650 985,279 679,140
35 5,635,624 41,148,560 235,569,083 NHFIL 5,635,624 41,148,560 280,090,513
36 - - - NIACO 41,855 418,550 418,550
37 31 3,100 3,100 Niloy Cement Ltd. 31 3,100 3,100
38 136,000 37,049,160 16,864,000 Olympic Industries Ltd. 129,000 35,902,751 20,717,400
39 - - - Oryza Agro Ind. Ltd. 27,244 272,440 283,338
40 99,900 30,677,798 20,899,080 Padma Oil 99,900 30,677,798 21,228,750
41 50,000 3,514,668 2,620,000 Power Grid BD Ltd. 50,000 2,551,943 2,980,000
42 254,733 11,470,236 6,699,478 Pubali Bank Ltd. 254,733 11,470,236 6,826,844
43 165,322 8,872,867 7,092,314 RAK Ceramics Ltd. 165,322 8,872,867 7,340,297
44 12,100,000 110,000,000 124,630,000 RI Mutual Fund: Scheme One 12,100,000 110,000,000 140,360,000
45 2,312 19,906 22,658 Ringshine Textiles Ltd. 2,312 19,906 22,195
46 165,000 8,569,593 4,950,000 Robi Axiata Ltd. 165,000 8,569,593 5,709,000
47 - - - Runner Automobile Ltd. 3,024 216,000 155,131
48 106,000 3,856,535 3,148,200 Saif Power Ltd. 100,000 3,856,535 3,830,000
49 10,000 96,154 106,000 SBAC Bank Ltd. 31,200 300,000 474,240
50 20,000 3,610,644 3,038,000 Singer BD Ltd. 20,000 3,610,644 3,398,000
51 644,426 14,436,375 8,893,079 Southeast Bank Ltd. 619,641 14,436,375 9,604,436
52 638,781 140,580,094 134,016,254 Square Pharmaceuticals Ltd. 638,781 140,580,094 136,890,768
53 100,000 1,000,000 930,000 Union Bank Ltd. - - -
54 - - - Union Insurance Ltd. 4,643 46,430 46,430
Total 994,376,506 2,176,714,350 920,482,858 2,520,704,293

* Investment in shares that do not have any quoted market price in the active market and whose fair value cannot
be measured reliably, were recognized at cost.

Reliance Insurance Limited

Annual Report 2022
 135

2022 2021
PARTICULARS NOTES
Taka Taka
14.03 Changes in fair value
Fair value of the investment 2,176,714,350 2,520,704,293
Less: Cost price of the investment 994,376,506 920,482,858
Fair value reserve at 31 December 1,182,337,844 1,600,221,435
Less: Fair value reserve at 1st January (1,440,199,291) (1,380,852,028)
Less: Adjustment for deferred tax 11.00 (160,022,143) (153,428,003)
Fair value adjustment for the year (417,883,590) 65,941,404

15.00 Stock of stamps and others

Insurance stamps 4,853,865 4,539,058
Stock of stationery 915,089 954,152
5,768,954 5,493,210

16.00 Advances, deposits and prepayments :

Advance to supplier 49,533,301 13,210,908
Security deposit 2,724,020 3,692,500
Advance against expenses, rent, salary etc. 13,305,616 15,351,617
Advance against tax 1,437,670,171 1,180,457,137
Advance commission against cover notes 71,733,066 72,789,631
IDLC & Multi Securities Ltd. 576,037 24,462,773
Collection control account: 111,767,771 105,178,438
For premium on policies 18,550,374 19,902,920
For premium on cover notes 93,217,397 85,275,518

1,687,309,982 1,415,143,004

Out of the total amount of collection control account Tk. 111.76 million mentioned above, Tk. 34.52 million was
realized within February 06, 2023. On the other hand out of total receivable, Tk. 0.57 million was lying with IDLC
Securities Ltd. against sale of shares at the reporting date.

17.00 Premium Control Account

Fire - 836,582
Motor 3,497,623 13,089,342
Miscellaneous 370,230 1,811,148
3,867,853 15,737,072

18.00 Interest receivable account

Accrued and overdue: 2,007,616 2,007,616
Fixed Deposits 2,007,616 2,007,616

Accrued but not due: 92,275,581 73,203,417

BD Govt. Treasury Bond 7,162,378 4,866,564
LBSL Zero Coupon Bond 314,818 457,470
Fixed Deposits 84,798,385 67,879,383

94,283,197 75,211,033

19.00 Amount due from other persons or bodies carrying on insurance business:
Sundry co-insurance claims recoverable 1,126,481 7,983,926
Co-insurance premium recoverable (including refund) 33,414,044 28,088,589
(1,913) (1,913)
Re-insurance Premium Receivable 122,127,834 109,234,833
STATEMENTS

For reinsurance acceptance with SBC 98,151,609 85,258,608

FINANCIAL

For reinsurance acceptance with GDIL 23,976,225 23,976,225

156,666,446 145,305,435
136

2022 2021
PARTICULARS NOTES
Taka Taka

20.00 Cash at bank

SND accounts 308,728,617 142,421,329
Current accounts 7,570,107 2,421,560
316,298,724 144,842,889
The Bank balances were confirmed and reconciled with bank statements.

21.00 Fixed Deposit Receipt (FDR)

Balance at the beginning of the year 3,338,500,000 3,004,500,000
Add: Placed during the year 1,241,000,000 1,704,000,000
Less: Encashed during the year (963,300,000) (1,370,000,000)
Balance at the end of the year 3,616,200,000 3,338,500,000

22.00 Audit Fees

Statutory audit fee * 373,750 345,000
Others audit fee 72,000 60,500
Total 445,750 405,500

* Statutory audit fee (including VAT) is fixed by the Shareholder in the Annual General Meeting and does not
include any other remuneration to Auditors.

23.00 Income Tax expenses

Current Tax 10.01 271,530,943 256,825,232
Deferred Tax expenses /(income) 24.00 (4,780,590) (7,774,421)
Total 266,750,353 249,050,810

23.01 Effective tax rate calculation

Profit Before Tax 882,680,865 836,857,434

Income Effective tax rate Tax expenses for the year

Types of income
2022 2021 2022 2021 2022 2021
Gain on sale of shares 5,653,010 16,036,976 10% 10% 565,301 1,603,698
Dividend on shares 80,073,675 75,637,443 20% 20% 16,014,735 15,127,489
Exempted Dividend income 25,000 25,000 0% 0% - -
Donations 2,400,000 2,469,390 0% 0% - -
Reserve for execptional
loss reserve 127,423,603 114,886,652 0% 0% - -
Gain on sale of Assets 4,077,068 101,327 15% 15% 611,560 15,199
Business Income 663,028,509 627,700,646 37.50% 37.50% 248,635,691 235,425,740
882,680,865 836,857,434 30.12% 30.13% 265,827,287 252,172,125
Investment Rebate -0.19% -0.03% (1,715,303) (297,340)
Over estimation 0.84% 0.59% 7,418,959 4,950,447
Deductible tax -0.54% -0.93% (4,780,590) (7,774,421)
Total 30.22% 29.76% 266,750,353 249,050,810

Reliance Insurance Limited

Annual Report 2022
 137

2022 2021
PARTICULARS NOTES
Taka Taka
24.00 Deferred Tax expenses / (income)
Deferred tax Liabilities as at 31 December 11 266,560,863 313,129,812
Less: Restated Deferred tax liabilities as at 01 January 11 (313,129,812) (314,310,092)
Deferred tax provided for the year (46,568,949) (1,180,280)
Deferred tax income on changes in fair value 41,788,359 (6,594,141)
Total (4,780,590) (7,774,421)

25.00 Interest & dividend income:

Fixed Deposit 177,276,110 181,876,183
SND Accounts 4,645,710 4,619,209
Interest on Debenture - 1,748,309
Government Treasury & Zero Coupon Bond 47,695,634 34,501,666
Interest on Trust Bank Ltd. Subordinated Bond-II - 849,315
Interest on SIBL Mudaraba Bond - 177,534
Dividend on shares 80,098,675 75,637,443
309,716,128 299,409,658

26.00 Other income

Profit on sale of assets * 4,077,068 101,327
Gain on sale of shares 5,653,010 16,036,976
Service charges income (net) 1,939,007 2,067,146
Sundry income 581,643 1,340,763
12,250,729 19,546,212
* Profit on sale of assets includes Tk. 2,379,041.00 transferred from Capital Reserve.

27.00 Earnings Per Share

27.01 Basic Earnings Per Share

The Company calculates Earnings per Share (EPS) in accordance with "IAS 33: Earnings Per Share", which has been
shown on the face of the income statement and this has been calculated by dividing the basic earnings by the
weighted average number of ordinary shares outstanding for the year. Details calculations were as follows:

Earnings attributable to ordinary shareholders (Net profit after tax) 615,930,511 587,806,623

Ordinary Shares at 1st January 105,161,087 105,161,087

Bonus Shares Issued - -
Weighted average number of ordinary shares outstanding during the year 105,161,087 105,161,087

Basic Earnings Per Share 5.86 5.59

Earnings per share increased due to increase of premium income.

27.02 Diluted Earnings Per Share

Diluted earnings per share reflects the potential dilution that could occur if additional ordinary shares are
assumed to be issued under securities or contracts that entitle their holders to obtain ordinary shares in future, to
the extent such entitlement is not subject to unresolved contingencies.

At 31st December 2022, there was no scope for dilution and hence no dilution EPS is required to be calculated.
STATEMENTS
FINANCIAL
138

2022 2021
PARTICULARS NOTES
Taka Taka
28.00 Net Assets Value Per Share
Net Assets Value Per Share has been calculated based on weighted average number of 105,161,087 shares
outstanding as at December 31, 2022. Details calculations are as follows:

Net assets 6,745,708,661 6,771,155,137

Ordinary Shares at 1st January 105,161,087 105,161,087

Bonus Shares Issued - -
Weighted average number of ordinary shares outstanding during the year 105,161,087 105,161,087
Net Assets Value Per Share 64.15 64.39

Due to Decrease of market value of investment in securities, value of investment as well as net assets value (NAV)
of RIL as of December 31, 2022 has been decreased.

29.00 Net Operating Cash Flows Per Share

Net Operating Cash Flows Per Share (NOCFPS) has been calculated based on weighted average number of
105,161,087 shares outstanding during the period. Details calculations are as follows:

Net cash generated from operating activities 694,554,708 837,386,017

Weighted average number of ordinary shares 105,161,087 105,161,087

Net Operating Cash Flows Per Share 6.60 7.96

Net Operating Cash Flows Per Share decreased due to increase of Agent commission expenses and
Re-insurance payment.

29.01 Reconciliation of net profit to net operating cash flow

Net profit before tax 882,680,865 836,857,434

Adjustment:
Depreciation 39,248,450 39,785,076
Interest income (229,617,453) (223,772,216)
Dividend income (80,098,675) (75,637,443)
Profit on sales of fixed assets (4,077,068) (101,327)
Gain on sale of shares (5,653,010) (16,036,976)

Changes in working capital:

Increase/(decrease) the balance of fund 70,688,455 43,095,225
Increase/(decrease) the premium deposit 273,811,107 240,869,521
Increase/(decrease) of amount due to other persons or body (96,709,912) (39,283,260)
Increase/(decrease) outstanding refundable premium (826,725) (568,033)
Increase/(decrease) of Outstanding claims (96,539,252) 15,688,753
Increase/(decrease) of sundry creditor except payable for 135,728,862 134,863,903
fixed asset and tax payable
(Increase)/decrease of Stock of stamps & others (275,744) 632,492
(Increase)/decrease of Advance, deposit & prepayment 21,405,307 101,181,244
except AIT, Advance for fixed assets & collection control a/c
(Increase)/decrease of premium control account 11,869,219 4,394,702
(Increase)/decrease of amount due from other persons or body (11,361,011) (14,900,121)
Income tax paid (215,718,708) (209,682,959)
Net cash generated from operating activities 694,554,708 837,386,017
30.00 Statement of Cash Flows
The Statement of Cash Flows has been prepared in accordance with IAS -7 and the cash from the operating
activities has been presented under direct method.

Reliance Insurance Limited

Annual Report 2022
 139

31.00 Transactions with related Parties

The company, in normal course of business carried out a number of transactions with other entities that fall within
the definition of related party contained in International Accounting Standard 24. Related Party Disclosures. All
transactions involving related parties arising in normal course of business are conducted on an arm’s length basis
at commercial rates on the same terms and conditions as applicable to the third parties. Details of transactions with
related parties and business with them as at 31 December 2022 were as follows:

2022 2021
Name of the related Nature of
Relationship Premium Premium
party transaction Claim paid Claim paid
earned earned
Kumudini Welfare Trust Common Insurance 1,099,056 - 810,601 -
of Bengal (BD) Ltd. Director
Rangs Ltd. Common Insurance 163,672,526 8,485,324 137,471,522 29,287,768
Director
Transcom Ltd. Common Insurance 251,604,012 23,164,209 249,687,750 21,708,494
Director
Arlinks Ltd. Common Insurance - - 1,364,626 -
Director

32.00 Contingent liability

Company has the following Contingent liabilities.
Contingent liability for claims:

Claimed Contingent
Date of Provision
Claim no. Policy no. amount liability Current status
Claim made Taka
(Taka) (Taka)
15.09.1999 RIL/KLN/ RIL/KLN/DOS/P- 3,850,000 - 3,850,000 Pending befor
DOS/CL- 00001/08/1999 the High Court
00047/09/1999 (Co-Ins)
08.10.2010 RIL/KTJ/FL- RIL/KTJ/FP- 3,250,000 100,040,646 Pending before
00147/10/2010 00001/01/2010 100,040,646 Jt. District
Judge, 1st Court,
Chittagong
13.08.2011 RIL/JES/ RIL/JES/MV(CV)/ 77,625,452 - 77,625,452 Appealate
MVL(CCV)- CERT- Division High
00527/08/2011 00303/08/2010 Court
(Co-Ins)
13.08.2011 RIL/JES/ RIL/JES/ 50,580,000 - 50,580,000 Pending befor
MVL(CCV)- MV(CV)/CERT- the High Court
00527/08/2011 00303/08/2010
(Co-Ins)
Total 232,096,098 3,250,000 232,096,098

Contingent liability for tax:

Assessment year Tax demanded Tax paid Current status

2011-2012 59,996,059 62,549,792 Stay order by High Court
2012-2013 86,114,185 78,573,486 Stay order by High Court
2013-2014 101,870,998 94,952,675 Stay order by High Court
2014-2015 137,735,829 130,542,043 Stay order by High Court
2015-2016 125,404,760 104,832,277 Stay order by High Court
2016-2017 135,386,654 122,355,486 Stay order by High Court
2017-2018 141,278,654 135,760,179 Stay order by High Court
2018-2019 180,472,886 157,327,591 Stay order by High Court
2019-2020 218,085,411 191,505,487 Stay order by High Court
Total 1,186,345,436 1,078,399,016

33.00 Number of employees engaged

The number of employees engaged at reporting date who received a total remuneration of Tk. 36,000 and above
STATEMENTS
FINANCIAL

per annum was 314.

34.00 Management expenses

Management expenses as charged to Revenue Accounts amounting to Tk. 403.30 million represents 11.45% of
the gross premium of Tk. 3,523.63 million and 31.65% of net premium of Tk. 1,274.24 million in 2022. Moreover, an
amount of Tk. 17.24 million was paid to the Directors and Chief Executive Officer as fees and remuneration.
140

34.01 Key management benefits

The aggregate amount paid (except Directors’ fees for attending board meetings) during the year to Directors and
Executives of the Company is disclosed below as required by the Securities and Exchange Rules-1987

2022 2021
Benefits
Dirctors Executives Dirctors Executives
Salary Nill 48,400,068 Nill 47,585,852
Festival Bonus " 4,009,134 " 4,011,262
Provident Fund " 1,288,232 " 1,513,270
Gratuity " 2,064,635 " 1,572,818
Medical Assistance " 36,251 " 38,313
Group Insurance " 146,214 " 168,855
Conveyance allowance & Transport " 3,826,643 " 3,589,414
Total " 59,771,177 " 58,479,784

2022 2021
PARTICULARS
Taka Taka
35.00 Board meeting fees

During the year 6 Board meeting were held

Honorarium for attending meeting 960,000 1,216,000
960,000 1,216,000

36.00 Allocation of Management Expenses

Management expense of the Company Tk. 403.30 million has been allocated to the revenue accounts based on
gross premium in the following ratio:
Share of
Gross premium Stamp
Revenue Account Ratio % managemnt Total
including PSB expense
expenses
Fire 1,937,447,132 54.98% 220,718,128 947,458 221,665,586
Marine Cargo 702,013,473 19.92% 79,974,879 - 79,974,879
Marine Hull 253,250,102 7.19% 28,850,794 - 28,850,794
Motor 138,610,110 3.93% 15,790,761 762,300 16,553,061
Miscellaneous 492,307,036 13.97% 56,084,672 169,177 56,253,849
Total 3,523,627,853 100% 401,419,234 1,878,935 403,298,169
37.00 Compensation (Board & CEO)
No compensation was allowed to the Chief Executive Officer of the Company or any member of the Board for any
special services rendered except as noted in note 34.
38.00 Claims
The Company had no claim against it which has not been acknowledged as debt at the balance sheet date.
39.00 Credit facility
There was no credit facility as on 31 December 2022 availed by the Company under any contract other than trade
credit available in the course of business.
40.00 Head Office & Branch Offices
The registered office of the Company is located at Shanta Western Tower, Level-5, Space No. 503 & 504, 186, Bir
Uttam Mir Shawkat Ali Shorak (Tejgaon-Gulshan Link Road), Tejgaon Industrial Area, Dhaka-1208, Bangladesh.
41.00 Geographical area of operations
The Company carries its insurance activities through thirty two branches throughout the Bangladesh.
42.00 Credit Rating Report
Credit Rating Information and Services Limited (CRISL) has announced the Claim paying ability (CPA) rating of
the Company as 'AAA' (Triple A indicating highest claim paying ability) based on the audited financial statements
ended December 31, 2021 and other relevant qualitative and quantitative information up-to the date of rating on
December 28, 2022.
43.00 Interim Financial Statements
Reliance Insurance Limited publishes its interim financial statements quarterly as required by the Bangladesh
Securities and Exchange Commission.
44.00 Post balance sheet Events
a) Board of Directors has recommended 25% cash dividend for the year ended December 31, 2022.
b) No other material event occurred after the reporting period except those mentioned above, which could
materially affect the amounts or disclosures in these financial statements.

Reliance Insurance Limited

Annual Report 2022
Fixed Asset Schedule Annexure -A

as at December 31, 2022

Motor Office &

Furniture& Telephone Software Signboard &
Particulars Land Buildings Vehicle / Electrical Computers Total
Fixtures Installation Installation Hoarding
Cycle Equipments
Cost:
Balance as at 01.01.2021 76,546,077 358,469,786 108,163,432 38,660,186 20,478,042 14,845,333 1,599,217 4,633,391 1,062,385 624,457,847
Additions - - 10,591,465 6,987,302 1,793,115 2,177,730 80,152 - - 21,629,764
Disposals /Adjustments - - (2,250,000) (780,299) (527,894) (309,649) (653,764) - - (4,521,606)
Balance as at 31.12.2021 76,546,077 358,469,786 116,504,897 44,867,189 21,743,263 16,713,414 1,025,605 4,633,391 1,062,385 641,566,005
Balance as at 01.01.2022 76,546,077 358,469,786 116,504,897 44,867,189 21,743,263 16,713,414 1,025,605 4,633,391 1,062,385 641,566,005
Additions - - 16,562,388 1,888,413 395,551 2,742,216 - - - 21,588,568
Disposals /Adjustments - - (3,032,620) (748,855) (574,730) (660,984) (25,370) - - (5,042,559)
Balance as at 31.12.2022 76,546,077 358,469,786 130,034,665 46,006,747 21,564,084 18,794,646 1,000,235 4,633,391 1,062,385 658,112,014
Accumulated Depreciation:
Balance as at 01.01.2021 - 116,357,943 73,830,592 28,804,450 16,517,539 10,338,001 1,460,520 4,633,371 1,060,542 253,002,956
Charge for the year - 14,927,582 13,964,552 2,078,989 1,133,390 1,226,590 33,495 - 1,834 33,366,432
Disposals/ Adjustments - - (1,131,781) (752,102) (527,866) (244,961) (653,760) - - (3,310,470)
Balance as at 31.12.2021 - 131,285,525 86,663,363 30,131,337 17,123,063 11,319,630 840,255 4,633,371 1,062,376 283,058,918
Balance as at 01.01.2022 - 131,285,525 86,663,363 30,131,337 17,123,063 11,319,630 840,255 4,633,371 1,062,376 283,058,918
Charge for the year - 15,248,514 12,689,408 2,498,836 1,226,842 1,448,041 39,098 - - 33,150,738
Disposals/ Adjustments - - (3,032,614) (741,664) (574,703) (655,388) (25,368) - - (5,029,737)
Balance as at 31.12.2022 (A) - 146,534,039 96,320,157 31,888,509 17,775,202 12,112,283 853,985 4,633,371 1,062,376 311,179,920
Carrying Amount:
Balance as at 31.12.2022 (A) 76,546,077 211,935,747 33,714,508 14,118,238 3,788,882 6,682,363 146,250 20 9 346,932,095

Balance as at 31.12.2021 (A) 76,546,077 227,184,261 29,841,534 14,735,852 4,620,200 5,393,784 185,350 20 9 358,507,087
141

FINANCIAL
STATEMENTS

Fixed Asset Schedule
as at December 31, 2022
Annual Report 2022
Particulars
Reliance Insurance Limited
Revaluation
Balance as at 01.01.2021
Additions
Revaluation
Disposals /Adjustments
Balance as at 31.12.2021
Balance as at 01.01.2022
Additions
Revaluation
Disposals /Adjustments
Balance as at 31.12.2022
Accumulated
Depreciation:
Balance as at 01.01.2021
Charge for the year
Disposals/ Adjustments
Balance as at 31.12.2021
Balance as at 01.01.2022
Charge for the year
Disposals/ Adjustments
Balance as at 31.12.2022
Carrying Amount:
Balance as at 31.12.2022 (B)
Balance as at 31.12.2021 (B)
Balance as at 31.12.2022
(Grand total) A+B
Balance as at 31.12.2021
(Grand total) A+B
142
Continuation of Annexure -A
Motor Office &
Furniture& Telephone Software Signboard &
Land Buildings Vehicle / Electrical Computers Total
Fixtures Installation Installation Hoarding
Cycle Equipments
1,382,490,726 128,372,887 - - - - - - - 1,510,863,613
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
1,382,490,726 128,372,887 - - - - - - - 1,510,863,613
1,382,490,726 121,954,243 - - - - - - - 1,504,444,969
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
1,382,490,726 121,954,243 - - - - - - - 1,504,444,969
- - - - - - -
- - - - - - - - - -
6,418,644 - - - - - - - 6,418,644
- - - - - - - - - -
- 6,418,644 - - - - - - - 6,418,644
- - - - - - - -
- - - - - - - - - -
- 6,097,712 - - - - - - - 6,097,712
- - - - - - - - - -
- 6,097,712 - - - - - - - 6,097,712
1,382,490,726 115,856,531 - - - - - - 1,498,347,257
1,382,490,726 121,954,243 - - - - - - - 1,504,444,969
1,459,036,803 327,792,278 33,714,508 14,118,238 3,788,882 6,682,363 146,250 20 9 1,845,279,350
1,459,036,803 349,138,504 29,841,534 14,735,852 4,620,200 5,393,784 185,350 20 9 1,862,952,057
 143

Information About
Corporate Governance

CORPORATE GOVERNANCE
INFORMATION ABOUT
144

Information about
Corporate Governance
Corporate governance The maintenance of effective corporate governance remains a key priority of
the Board of Reliance Insurance Limited (RIL). To ensure clarity about Directors
is the system by which responsibilities towards the shareholders, corporate governance must be
companies are directed dynamic and focused on the business objectives of the Company and should
create a culture of openness and accountability. RIL considers that its corporate
and controlled by the governance practices comply with all the aspects of BSEC Notification No.
management in the BSEC/CMMRRCD/2006-158/2007/Admin/80 dated 03 June 2018. In addition to
establishing high standards of corporate governance, RIL also emphasizes best
best interest of all the governance practices in all of its activities. The role of Board of Directors, separate
stakeholders, thereby and independent role of Chairman and Chief Executive Officer, distinct role of
ensuring greater Company Secretary and Chief Financial Officer, and of different Board Committees
allow RIL to achieve excellence in best corporate governance practices.
transparency and better
BOARD OF DIRECTORS
and timely financial
Composition
reporting. The Board of RIL considers that its membership should comprise of Directors
with an appropriate mix of skills, experience and personal attributes that allow the
Directors, individually and the Board, collectively, to discharge their responsibilities
and duties under the law efficiently and effectively, understand the business of the
company and assess the performance of the management.

The Board of RIL comprises of seventeen Directors who possess a wide range
of skills and experience over a range of professions, business and service. All of
them are nominated by their respective institutions except for four independent
directors. Each of the Directors brings in independent judgment and considerable
knowledge to perform their roles effectively. The Board of directors ensure that
the activities of the company are always conducted with adherence to strict and
highest possible ethical standards and in the best interests of the stakeholders.

The Directors are appointed by the shareholders in the Annual General Meeting
(AGM). Casual vacancies, if any, are filled in by the Board in accordance with the
stipulations of the Companies Act, 1994, Notification by BSEC and Articles of
Association of the Company. In addition, one third of the directors retires from the
board every year in the AGM, but remains eligible for re-election.

CODE OF CONDUCT OF THE CHAIRPERSON, OTHER BOARD MEMBERS

AND CHIEF EXECUTIVE OFFICER
The Chairperson, other Board members and Chief Executive Officer of the
Company shall act within the authority conferred upon them, in the best interests
of the Company and observe the following:
Prudent conduct and behavior
The Chairperson, other Board members and Chief Executive Officer shall act
honestly, ethically, in good faith and in the best interest of the Company.

Whilst carrying out the duties, the Chairperson, other Board members
and Chief Executive Officer shall ensure that it is executed in terms of the
authorizations granted and within the limits prescribed under the relevant
policies, codes, guidelines and other directives issued by the Board of
Directors of the Company from time to time.

The Chairperson, other Board members and Chief Executive Officer shall
refrain from indulging in any discriminatory practice or behavior based on
race, color, sex, age, religion, ethnic or national origin, disability or any other
unlawful basis. The ethical conduct, performance and skills shall be the
qualifying indicatives for an employee’s performance.

Reliance Insurance Limited

Annual Report 2022

The Chairperson, other Board members and Chief
Executive Officer shall conduct themselves in a
professional, courteous and respectful manner and
shall not take any improper advantage of their position.
The Chairperson, other Board members and Chief
Executive Officer shall use the Company’s assets,
property, proprietary information and intellectual rights
for business purposes of the Company and not for any
personal benefits or gains.
Confidentiality
The Chairperson, other Board members and Chief
Executive Officer should conduct themselves so as to
meet the expectations of operational transparency of
the stakeholders while at the same time maintaining
confidentiality of information in order to foster a culture
conducive to good decision making. “Confidential
information” includes, amongst others, all information
of the Company not authorized by the management of
the Company for public dissemination.
All confidential information must be held in confidence,
unless authorized by the Board or otherwise permissible
in accordance with the Code; or the same is part of the
public domain at the time of disclosure; or is required
to be disclosed in accordance with applicable laws.
Conflict of interest
The Chairperson, other Board members and Chief
Executive Officer shall not enter into any transaction
which is or may likely to have a conflict with the interest
of the Company.
The Chairperson, other Board members and Chief
Executive Officer should disclose to the Board whether
they directly, indirectly or on behalf of third parties
have a material interest in any transaction or matter
directly affecting the Company.
All transactions having conflict of interest should
be carried out in accordance with law and be fully
disclosed to the Board of Directors.
Compliance with Laws, Rules and Regulations
The Chairperson, other Board members and Chief
Executive Officer shall ensure compliance with the
various legal/regulatory requirements as applicable
to the business of the Company and endeavor that
before any directions are given or decisions taken,
relevant legal/regulatory requirements are taken into
account.
Prohibition of Insider Trading
The Chairperson, other Board members and Chief
Executive Officer shall comply with all laws, rules,
and regulations governing trading in the shares of
the Company and the Company’s Code of Conduct
for Prohibition of Insider Trading in dealing with the
securities of the Company which, inter alia, prohibits
buying or selling of the Company’s securities on the
basis of any unpublished price sensitive information
and prohibits disclosure of such information to
145
any other person (including relatives) where such
information may be used by such person for his or her
personal benefit or gain.
The Chairperson, other Board members and Chief
Executive Officer should comply with the provision
of the Companies Act, 1994 and applicable rules
and regulations issued by the Bangladesh Securities
Exchange Commission, Dhaka Stock Exchange and
Chittagong Stock Exchange, in so far as they relate to
prohibitions on insider trading.
Relationship with Environment
The Chairperson, other Board members and Chief
Executive Officer should cause the Company to strive
to provide a safe and healthy working environment
and comply, in the conduct of the business affairs
of the Company, with all regulations regarding the
preservation of the environment of the industry it
operates in.
The Company should be committed to prevent the
wasteful use of natural resources and minimize any
hazardous impact of the development, production,
use and disposal of any of its products and services
on the ecological environment in accordance with the
applicable laws.
Relationship with Employees
The Chairperson, other Board members and Chief
Executive Officer should strive for causing the
Company to maintain cordial employee relations.
The Chairperson, other Board members and Chief
Executive Officer should cause the Company to build
competency based human resource systems and
maintain human resource policies that have been
directed at managing the growth of the organization
efficiently.
The Chairperson, other Board members and Chief
Executive Officer should assist the Company in further
aligning its human resource policies, processes and
initiatives to meet its business needs.
Relationship with Customers
The Chairperson, other Board members and Chief
Executive Officer should ensure that the Company
is committed to supply products and services of the
highest quality standards backed by efficient after-
sales service consistent with the requirements of the
customers to ensure their total satisfaction.
The Chairperson, other Board members and Chief
Executive Officer should ensure that Company will
CORPORATE GOVERNANCE
properly engage in product advertising, publicity, and
INFORMATION ABOUT
sales promotion activities to avoid misleading the
customers.
The Chairperson, other Board members and Chief
Executive Officer should ensure that the Company will
engage in free and open competition with competitors
to maintain its stance as a company trusted by
customers and society.
146
Relationship with Suppliers
This Code contains general requirements applicable to
all suppliers to Company. Particular supplier contracts
may contain more specific provisions addressing some
of these same issues. Nothing in the Code is meant
to supersede any specific provision in a particular
contract, and to the extent there is any inconsistency
between the Code and any other provision of a
particular contract, the other provision will prevail.
The Chairperson, other Board members and Chief
Executive Officer should act in the best interest of
the Company. Accordingly, the Chairperson, other
Board members and Chief Executive Officer should
have no relationship, financial or otherwise, with any
supplier that might conflict, or appear to conflict, with
the Chairperson, other Board members and Chief
Executive Officer’s obligation to act in the best interest
of the Company.
Independency
The Chairperson, other Board members and Chief
Executive Officer should remain independent in all
material respects.
The Chairperson, other Board members and
Chief Executive Officer should act impartial to the
Employees, Customers, Suppliers, Shareholders and
other Stakeholders.
THE ROLES AND RESPONSIBILITIES OF THE
CHAIRMAN
The principal role of the Chairman of the Board is to manage
and to provide leadership to the Board of Directors of the
Company. The Chairman is accountable to the Board
and acts as a direct liaison between the Board and the
management of the Company, through the Chief Executive
Officer (CEO). In particular, he will:
1. Chairing the meeting of the Board of Directors and
Shareholders of the Company.
2. Establishes good corporate governance practices and
procedures and promote the highest standards of
integrity, probity and corporate governance throughout
the Company and particularly at the Board level.
3. Ensures that all Board committees are properly
established, composed and operated.
4. Ensures that there is effective communication with
shareholders and that each Director to develops and
maintains an understanding of the shareholders’ views.
5. Sets, in consultation with the Chief Executive Officer,
the Board meeting schedule and agenda to take full
account of the important issues facing the Company
and ensures that adequate time is available for
thorough discussion of critical and strategic issues.
6. Ensures that the Board is properly briefed on issues
arising at Board meetings and receives, in a timely
manner, adequate information which must be accurate,
clear, complete and reliable, to fulfill its duties, such as
Reliance Insurance Limited
Annual Report 2022
reports on the Company’s performance, the issues,
challenges and opportunities facing the Company, and
matters reserved to it for decision.
7. Ensures that the strategies and policies agreed by
the Board are effectively implemented by the Chief
Executive and the management of the Company.
8. Supports the Chief Executive Officer in the
development of strategy and, more broadly, to support
and advise the Chief Executive Officer.
9. In consultation with the CEO, to determines the date,
time and location of the annual meeting of shareholders
and to develop the agenda for the meeting.
10. Reviews and signs minutes of Board meetings.
THE ROLES AND RESPONSIBILITIES OF THE BOARD
The Board is committed to the company seeking to achieve
superior financial performance and long term prosperity,
while meeting stakeholder’s expectations of sound
corporate governance practice. The Board determines the
corporate governance arrangements for the company.
As with all its business activities, the Board is proactive in
respect of corporate governance and puts in all places those
arrangements which it considers are in the best interest of
the company and its shareholders, and consistent with its
responsibilities to other stakeholders.
The Board of Directors is in full control of the company’s
affairs and is also fully accountable to the shareholders.
It firmly believe that the success of the company largely
depends on the credible corporate governance practices
adopted by the Company. Taking this into consideration,
the Board of Directors of RIL sets out its strategic focus and
oversees the business and related affairs of the company.
The Board also formulates the strategic objectives and
policy framework for the company. In discharging the above
responsibilities, the Board caries out, the following functions
as per the charter of the Board.
Determine, monitor and evaluate strategies, policy,
management performance criteria and business plan.
Periodic and timely reporting to the shareholders on
the affairs, progress and performance of the company
Ensuring proper decision making and accountability
structure throughout the Company so that the staff
down the line is fully accountable to the corporate
management.
Delegation to Board Committees and management
and approval of transactions in excess of delegated
level
Approval of annual budgets including major capital
expenditure proposals
Critical evaluation of all proposals which require
Board’s approval and/or directives
Regular review of financial performance and overdue
situation

Appointment and evaluation of the performance of the
top management positions
Ensuring that the senior management team has the
necessary skill and experience to perform their function
effectively, in the best interest of the Company
Monitoring the adequacy, appropriateness and
operation of internal controls.
THE ROLES AND RESPONSIBILITIES OF THE CHIEF
EXECUTIVE OFFICER
Chief Executive Officer shall subject to direction, supervision
and control of the Board of Directors, have the following
roles and responsibilities in addition to the responsibilities
defined in the Articles of Association of the Company:
1. Develops a strategic plan to advance the company’s
mission and vision and to promote revenue, profitability,
and growth as an organization.
2. Conducts the affairs of the Company in accordance
with the practices and procedures adopted by
the Board and promotes the highest standards of
integrity, probity and corporate governance within the
Company.
3. Recommends yearly budget for Board approval and
prudently manages organization’s resources within
those budget guidelines according to current laws and
regulations.
4. Ensures that the Company conducts all of its business
activities in compliance with legal, regulatory and
Company policy, controls and standards.
5. Reviews activity reports and financial statements to
determine progress and status in attaining objectives
and revise objectives and plans in accordance with
prevailing conditions.
6. Leads the management in the day-to-day running
of the Company’s business in accordance with the
business plans and within the budgets.
7. Implements, with the support of the management, the
strategies and policies as approved by the Board and
its committees in pursuit of the Company’s objectives.
8. Maintains regular dialogue with the Chairman on
important and strategic issues facing the Company and
ensures bringing these issues to the Board’s attention.
9. Ensures that the management gives appropriate
priority to providing reports to the Board which
contains relevant, accurate, timely and clear
information necessary for the Board to fulfill its duties.
10. Leads the communication program with the
shareholders.
11. The CEO shall along with CFO certify the Board that:
(i). they have reviewed financial statements for the
year and that to the best of their knowledge and
belief:
147
(a) these statements do not contain any
materially untrue statement or omit any
material fact or contain statements that
might be misleading;
(b) these statements together present a true
and fair view of the company’s affairs and
are in compliance with existing accounting
standards and applicable laws;
(ii) There are, to the best of knowledge and belief, no
transactions entered into by the company during
the year which are fraudulent, illegal or violation
of the company’s code of conduct.
12. Evaluates performance of top executives of the
Company for compliance with established policies
and objectives of the company and contributions in
attaining objectives.
13. Effectively manages the human resources of the
organization according to authorized personnel
policies and procedures that fully conform to current
laws and regulations.
14. Putting in place adequate operational planning and
financial control systems.
15. Representing the company to major customers and
professional associations.
16. Promotes the company to local and international
communities
17. Taking remedial action where necessary and informing
the board of significant changes;
18. Other roles and responsibilities as assigned by the
Board of Directors.
Board Meetings
The meetings of the Board of Directors of RIL are normally
held at the Registered and Corporate Head Office of the
Company. The meetings are held frequently to discharge
its responsibilities and functions as mentioned above.
Meeting is scheduled well in advance and the notice of
each Board Meeting is given, in writing, to each Director by
the Company Secretary.
The Company Secretary prepares the detailed agenda for
the meeting. The Board papers comprising the agenda,
explanatory notes and proposed regulations are circulated
to the directors in advance for their review. The Members
of the Board have complete access of all information of the
CORPORATE GOVERNANCE
company enabling them to work efficiently. The Members
INFORMATION ABOUT
of the Board are also free to recommend inclusion of
any matter in the agenda for discussion. The Company
Secretary and Chief Financial Officer and the HIAC always
attend the Board Meeting and other senior management
is invited to attend Board Meeting to provide additional
inputs to the items being discussed by the Board and make
necessary presentations.
148

Properly designed management structure, clearly defined Audit Committee Meeting

responsibilities, delegation or authorities, establishment of
Sl. Name of the Total
accountability at each level and system of periodic reporting Meetings
No. Director Meetings %
and monitoring performance are the key elements of the Attended
held
internal control framework employed in RIL.
Mr. Azizur Rashid
01 4 4 100
AUDIT COMMITTEE FCA
Composition of Audit Committee Mr. Md. Habibur
02 4 4 100
Rahman Mollah FCA
Audit committee of Reliance Insurance Limited is a Sub- Mr. Imran Faiz
03 4 3 75
Committee of the Board of Directors. Audit Committee Rahman
comprises of 3 (three) Directors nominated by the Board of
Directors. The Committee is headed by a Director who is an Internal Control and risk management
Independent Director of the Company. The Chief Internal
Although the Board of Directors is ultimately responsible for
Audit & Compliance Department has direct access to the
ensuring that adequate and effective internal control and
Committee and the Committee is directly reportable to the
risk management systems are place but Audit committee
Board. of the Board has a vital role to play. Although no system of
Role of the Audit Committee internal financial control can provide absolute assurance
against material misstatement or financial loss, the
According to the Terms of Reference approved by the company’s internal control system have been designed to
Board and in compliance with code 5(5) of the Bangladesh provide the Directors with reasonable assurance that assets
Securities and Exchange Commission Notification No. are safeguarded against unauthorized use by the employees
BSEC/CMRRCD/2006-158/207/Admin/80 dated 03 June / or management and / or third parties, transactions are
2018, the role of the Committee is as follows: authorized and properly recorded and material error and
irregularities are either prevented or detected within a
(i) Oversee the financial reporting process. reasonable period of time.

(ii) Monitor choice of accounting policies and principles. NOMINATION AND REMUNERATION COMMITTEE
(iii) Monitor Internal Control Risk management process. (NRC)

(iv) Oversee hiring and review performance of external NRC Committee of Reliance Insurance Limited comprises
auditors. Three members. The committee is headed by a director
who is an Independent Director of the Company. Members
(v) Review along with the management, the annual of NRC committee are as follows -
financial statements before submission to the Board
Meeting and attendance NRC Committee
for approval.

(vi) Review along with the management, the quarterly and Nomination and
half yearly financial statements before submission to Remuneration Committee
the Board for approval. Sl. Name of the Meeting
(vii) Review the adequacy of internal audit function. No. Director Total
Meetings
Meetings %
(viii) Review statement of significant related party Attended
held
transactions submitted by the management.
Mr. Shamsur
01 2 2 100
(ix) Review Management Letters/ Letter of Internal Control Rahman
weakness issued by statutory auditors. Mr. Arshad Waliur
02 2 2 100
(x) When money is raised through Repeat Public Offering Rahman
(RPO)/Rights Issue, the Company shall disclose to Mr. Anis-uz-Zaman
03 2 2 100
the Audit Committee about the uses/applications of Khan
funds by major category (capital expenditure, sales
Terms of reference (ToR) of NRC committee in line with
and marketing expenses, working capital, etc), on a
the corporate governance Condition no.6 (1) and other
quarterly basis, as a part of their quarterly declaration
compliance as per 6(2) to 6 (5) of BSEC notification no.
of financial results. Further, on an annual basis, the
BSEC/CMRRCD/2006-158/207/Admin/80 dated 3 June 2018
Company shall prepare a statement of funds utilized
are as follows-
for the purposes other than those stated in the offer
document/prospectus. Terms of Reference
1. Purpose
Meeting and attendance of audit committee
1.1 The Committee assists the Board in formulation of
During the year 2022 Audit committee of the Board met the nomination criteria or policy for determining
four times to discharge their responsibilities. Detail of the qualifications, positive attributes, experiences and
meeting and record of attendance of the members are as independence of directors and top level executive
follows: as well as a policy for formal process of considering

Reliance Insurance Limited

Annual Report 2022

remuneration of directors, top level executive. 4.
2. Authority 4.1
2.1 The Nomination and Remuneration Committee is a
Committee of the Board of Reliance Insurance Limited
from which it derives its authority and to which it
regularly reports.
2.2 The Committee has delegated authority from the
Board in respect of the functions and powers set out in
these Terms of Reference. 4.2
3. Constitution
3.1 Chairperson
a. One member of the NRC to be Chairperson of the
Committee appointed by the Board, who shall be
an independent director;
b. In the absence of the Chairperson of the NRC, the
remaining members may elect one of themselves
as Chairperson for that particular meeting, the 4.3 Meeting Fees
reason of absence of the regular Chairperson
shall be duly recorded in the minutes;
c. The Chairperson of the NRC shall attend the
annual general meeting (AGM) to answer the
queries of the shareholders:
4.4 Minutes of Meeting
Provided that in absence of Chairperson of the
NRC, any other member from the NRC shall be
selected to be present in the annual general
meeting (AGM) for answering the shareholder’s
queries and reason for absence of the Chairperson
of the NRC shall be recorded in the minutes of the 5.
AGM.
5.1
3.2 Membership
a. The Committee shall comprise of at least three
5.2 NRC shall oversee, among others, the following matters
members including an independent director;
and make report with recommendation to the Board:
b. All members of the Committee shall be non-
executive directors;
c. Members of the Committee shall be nominated
and appointed by the Board;
d. The Board shall have authority to remove and
appoint any member of the Committee;
e. In case of death, resignation, disqualification, or
removal of any member of the Committee or in
any other cases of vacancies, the board shall fill
the vacancy within 180 (one hundred eighty) days
of occurring such vacancy in the Committee;
f. The Chairperson of the Committee may appoint
or co-opt any external expert and/or member(s)
of staff to the Committee as advisor who shall be
non-voting member, if the Chairperson feels that
advice or suggestion from such external expert
and/or member(s) of staff shall be required or
valuable for the Committee;
3.3 Secretary
a. The company secretary shall act as the secretary
of the Committee;
149
Proceedings of Meetings
Frequency of Meetings
a. The NRC shall conduct at least one meeting in a
financial year;
b. The Chairperson of the NRC may convene
any emergency meeting upon request by any
member of the NRC;
Quorum
a. The quorum of the meeting of the NRC shall be
constituted in presence of either two members
or two third of the members of the Committee,
whichever is higher,
b. The quorum of the NRC meeting shall not
constitute without attendance of at least an
independent director;
a. No member of the NRC shall receive, either
directly or indirectly, any remuneration for any
advisory or consultancy role or otherwise, other
than Director’s fees or honorarium from the
company.
a. The proceedings of each meeting of the NRC
shall duly be recorded in the minutes and such
minutes shall be confirmed in the next meeting of
the NRC.
Role of NRC
NRC shall be independent and responsible or
accountable to the Board and to the shareholders;
a. formulating the criteria for determining
qualifications, positive attributes and
independence of a director and recommend a
policy to the Board, relating to the remuneration
of the directors, top level executive, considering
the following:
5.2.1.1 the level and composition of remuneration is
reasonable and sufficient to attract, retain and
motivate suitable directors to run the company
successfully;
5.2.1.2 the relationship of remuneration to performance
is clear and meets appropriate performance
benchmarks; and
CORPORATE GOVERNANCE
5.2.1.3 remuneration to directors, top level executive
INFORMATION ABOUT
involves a balance between fixed and incentive
pay reflecting short and long-term performance
objectives appropriate to the working of the
company and its goals;
b. devising a policy on Board’s diversity taking into
consideration age, gender, experience, ethnicity,
educational background and nationality;
150
c. identifying persons who are qualified to
become directors and who may be appointed
in top level executive position in accordance
with the criteria laid down, and recommend
their appointment and removal to the Board;
d. formulating the criteria for evaluation of
performance of independent directors and the
Board;
e. identifying the company’s needs for employees
at different levels and determine their selection,
transfer or replacement and promotion criteria;
and
f. developing, recommending and reviewing
annually the company’s human resources and
training policies;
5.3 The Committee shall report to the Board and disclose
the nomination and remuneration policy and the
evaluation criteria and activities of NRC during the year
at a glance in its annual report.
ETHICS AND COMPLIANCE
Reliance Insurance Limited provides due importance to the
moral concerns in order to make the right ethical decisions
in every aspects of its operation. RIL believes that upholding
the interest of the customers, employees, regulators and all
others stakeholders are very crucial for economic stability of
any country. Enforcing a corporate code of ethics requires
understanding and active participation by everyone in
the Company since the code spells out the expected
standards of behavior and sets the operating principles to
be followed. Every official ensures that the Company, at
all times, maintains high ethical standards and adequate
internal control measures are in place to safeguard against
unethical practices and irregularities. The Board of Directors
of the Company has already introduced high level of
Code of Conduct of the Board members. It also monitors
strict compliance of the same and record it annually. The
Company follows AML & CFT program as per the Guidelines
of Bangladesh Bank to prevent fraud and corruption. All tiers
of employees are continually trained on the issues.
OTHER COMMITTEES OF THE BOARD
In addition to the Audit Committee & NRC committee of
the Board, there are another sub-committees of the Board
namely Finance and Asset Management Committee.
The main purpose of Finance and Asset Management
Committee is to safeguard Company’s assets and use and
invest those assets in utmost profitable manner.
Finance and Asset Management Committee Members
1. Ms. Shahnaz Rahman Chairperson
2. Mr. Rajiv Prasad Shaha Member
3. Ms. Amiran Hossain Member
4. Mr. Azizur Rashid FCA Member
Reliance Insurance Limited
Annual Report 2022
Human Capital
RIL believes that Human capital is vitally important for the
Company’s success. It is prime asset of the Company. It
is the stock of competencies, knowledge and personality
attributes embodied in the ability to perform jobs as
to produce economic value to the Company. Human
capital can be increased through education, training and
experience. Reliance insurance Limited has the following
policy to increase human capital:
1. Establish and administer transparent policies
that enable Company to develop and implement
opportunities of recruitment, promotion, remuneration,
benefits, rewards and recognition system, transfer
and training and performance management system
without any regard to age, sex, race, political belief and
religion.
2. Create a climate of trust and support within the
company which encourage the employees to work well
together as a team and at the same time, to encourage
them to be innovative and creative in order to achieve
company goals.
3. Develop an effective internal communication and
involvement mechanism which encourage employees
to identify them with the company and its activities.
4. Adopt and institute a planned and systematic approach
to anticipated changes and develop plans for preparing
employees for technological and environmental
changes and accordingly Identify employees’ training
and developmental needs and provide them with
necessary development opportunities for them to
advance in their career.
5. Ensure that the employment opportunities conform
to the established and acceptable practices of the
country.
6. Ensure that there are proper manpower planning and
forecasting system in place to ensure that there will be
enough people with the right skills and talents to meet
company’s current and future growths and needs
7. Ensure that people with high capabilities proven
by track record reach key management positions
regardless of their sex, religion, cast creed, and more
importantly age and seniority in addition to putting
in place succession plans for all senior management
positions in the company.
COMMUNICATION TO SHAREHOLDERS AND
STAKEHOLDERS
Reliance Insurance Limited is committed to provide a high
standard of communication to its shareholders and other
investors so that they can have all information reasonably
required to make informed assessments of the company’s
value and prospects. Some information needs to be
communicated immediately in the form of price sensitive
information, for which suitable procedures are in place.
Directors of the Company normally attend the Annual
General Meeting and shareholders are invited to ask
questions during the meeting and to meet Directors after

the formal proceedings have been concluded. The Directors 2.
appreciate the importance of general shareholders of the
Company and use the Company’s Annual General Meeting
as further opportunities to communicate with them.
It is the company’s policy to give the shareholders the 3.
opportunity at Annual General Meeting to ask questions
about its activities and prospects. The Board also so arranges
that shareholders can vote separately on each matter,
by proposing separate resolutions for each item to be 4.
considered. As in past years, the Chairman of the Company
is available to answer questions from shareholders at the
Annual General Meeting.
The Company also maintains a corporate website
www.eliance.com.bd containing a wide range of information
of the Company. The website is updated on regular basis.
5.
MANAGEMENT REVIEW AND RESPONSIBILITIES
The Management of the company is responsible for
planning, organizing, staffing, directing, and controlling
in order to accomplish the Company’s strategic goals. A 6.
sound corporate management needs a range of skills and
understanding to be able to deal with various business issues.
It needs to be of sufficient size and have an appropriate level
of commitment to fulfill its responsibilities and duties. The 7.
Management is responsible for managing and controlling
the company’s business and day-to-day operations with the
aim of securing significant and sustained increase in the 8.
value of the company for its shareholders. The Management
also has to ensure that the company’s operations are in
compliance with the laws and regulations.
It is the Management of who is responsible for establishing
and maintaining proper internal control system, the 9.
Management having designed such control or caused
such control to be designed under its supervision. The
Management also has to evaluate the effectiveness of the
Company’s internal control system and satisfy that the 10.
internal control system were effective as of the end of the
period under review.
Moreover the Management of the Company shall:
1. Demonstrate its commitment to the establishment, 11.
implementation, assessment and continual
improvement of the management system and allocate
adequate resources to carry out these activities.
Review and improve
the vision etc.
Management
Cycle
Identify any changes
that are necessary
Provide oversight
support & act as a
role model
151
Communicate to individuals the need to adopt
to these individual values, Company’s values and
behavioral expectations as well as to comply with the
requirements of the management system.
Foster the involvement of all individuals in the
implementation and continual improvement of the
management system.
Ensure that it is clear when, how and by whom decisions
are to be made within the management system and
that measurable objectives for implementing the
goals, strategies and plans are established through
appropriate processes at various levels in the
organization.
Ensure that the implementation of the plans is
regularly reviewed against these objectives and that
actions are taken to address deviations from the plans
where necessary.
Determine the amount of resources necessary and
provide resources to carry out the activities of the
organization.
Establish, implement, assess and continually improve
the management system.
Determine competence requirements for individuals at
all levels and provide training or take actions to achieve
the required level of competence. An evaluation of the
effectiveness of the actions taken shall be conducted;
suitable proficiency shall be achieved and maintained.
Ensure that individuals are competent to perform
their assigned work and that they understand the
consequences for safety of their activities.
Ensure that Individuals shall have received appropriate
education and training, and shall have acquired
suitable skills, knowledge and experience to ensure
their competence.
Determine, provide, maintain and re-evaluate the
infrastructure and the working environment necessary
for work to be carried out in a safe manner and for
requirements to be met.
Establish the organization’s
vision, goals, objectives &
behaviours
Ensure the management
team are aligned with and
CORPORATE GOVERNANCE
support the vision etc.
INFORMATION ABOUT
Provide resources,
infrastructure & develop the
culture
Ensure the management
system enables the
vision etc.
152

EVALUATION OF QUARTERLY REPORT assets, or other assets, and the reversal of such an
Quarterly Financial Reports impairment loss;

Quarterly Financial Report (QFR) is the interim financial c)
report which is dealt by the International Accounting
Standard (IAS) 34. Moreover, it is one of the requirements d)
of Bangladesh Securities and Exchange Commission
Corporate Governance Notification No BSEC/
CMMRRCD/2006-158/134/Admin/44 dated 07 August 2012. e)
As per IAS 34, interim financial report means a financial report f)
containing either a complete set of financial statements or a
g)
set of condensed financial statements for an interim period.
The interim financial report is intended to provide an update
on the latest complete set of annual financial statements.
Audit of the interim financial statements is not required.
Acquisitions and disposals of items of property, plant
and equipment;
Commitments for the purchase of property, plant and
equipment;
Litigation settlement;
Corrections of prior period errors;
Changes in the business or economic circumstances
that affect the fair value of the entity’s financial assets
and financial liabilities, whether those assets or
liabilities are recognized at fair value or amortized cost;

Evaluation of Quarterly Reports h) Any loan default or breach of a loan agreement that
has not been remedied on or before the end of the
As per Bangladesh Securities and Exchange Commission reporting period;
(BSEC) Corporate Governance Notification and also
i) Related party transactions;
practices of the Company, quarterly financial reports of
Reliance Insurance Limited are primarily evaluated by the j) Transfer between levels of the fair value hierarchy
Audit Committee of the Board along with the Management used in measuring the fair value of financial
before submitting to the Board for their final approval. While instruments;
evaluating, the following events and transactions have
k) Change in the classification of financial assets as a
been taken into careful considerations since disclosures
result of a in change in the purpose or use of those
of the said events and transactions are required if they are
assets; and
significant:
l) Change in contingent liabilities or contingent assets.
a) The write-down of inventories to net realisable value
Evaluation Results
and the reversal of such a write-down;
b) Recognition of a loss from the impairment of financial Quarterly evaluation results of the Company for the year
assets, property, plant and equipment, intangible 2022 as compared with 2020 are as follows:

Quarterly Analysis
BDT Million

2022 2021
Particulars
Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total

Gross premium income 954.06 1,012.43 813.81 743.33 3,523.63 898.04 825.42 756.92 659.97 3,140.35

Net premium income 389.11 343.00 280.23 261.90 1,274.24 361.15 304.15 305.44 178.14 1,148.87
Add: Net R/I Commission
95.69 70.98 69.01 81.94 317.62 74.15 55.51 49.74 94.03 273.45
earned
Add : Investment & other
76.30 115.56 74.63 55.48 321.97 69.56 107.48 63.36 78.56 318.96
income
Total income 561.10 529.54 423.87 399.32 1,913.83 504.86 467.14 418.55 350.73 1,741.27

M. Expenses including Claims

and agent commssion 366.82 216.62 198.27 249.44 1,031.15 290.44 191.49 211.18 211.30 904.41
Net profit before tax 194.28 312.92 225.60 149.88 882.68 214.42 275.64 207.36 139.43 836.86

Provision for income tax 60.05 92.80 65.87 48.03 266.75 72.12 69.80 52.69 54.44 249.05

Net profit after tax 134.23 220.12 159.73 101.85 615.93 142.30 205.84 154.68 84.99 587.81

Earnings per share (EPS)

1.28 2.09 1.52 0.97 5.86 1.35 1.96 1.47 0.81 5.59
in taka

Reliance Insurance Limited

Annual Report 2022
 153

Net Profit Before Tax BDT in Million Directors are convinced from the following indications,
which give reasonable assurance as to company’s ability to

225.60
207.36
275.64
194.28

139.43

149.88
214.42

312.92
continue as a going concern for the foreseeable future.
Financial Indications

Positive net current assets

Fixed term debt with realistic renewal or repayment
Less reliance on short term borrowing
Continuous financial support by lenders
Positive operating cash flows
Q1 Q2 Q3 Q4 Positive key financial ratios
2021 2022
Consistent payment of dividends
Credibility in payment of obligations
Net Profit After Tax BDT in Million
Performance growth
205.84
142.30

134.23

154.68

101.85
220.12

159.73

84.99 Positive underwriting results and trends

Operating Indications

No key management turnover

Good business expansion
Spread of business across diverse clientele
Good market reputation and clients satisfaction
Good Corporate environment and employee
satisfaction
Q1 Q2 Q3 Q4
2021 2022 Other Indications

Maintenance of sufficient capital base as required by

Earnings per share law
Strong equity base
2.09

0.97
0.81
1.96
1.35

1.28

1.52
1.47

Strong claim Paying Ability (CPA)

Anticipates no significant change in legislation or
government policy

GOOD GOVERNANCE AND RIL

Q1 Q2 Q3
2021 2022
GOING CONCERN
Financial Statements are normally prepared on the
assumption that an enterprise is a going concern and will
continue in operation for the foreseeable future. Hence,
it is assumed that the enterprise has neither the intention
nor the need to liquidate or curtail materially the scale of its
operations; if such an intention or need exits, the financial
statement may have to be prepared on a different basis and,
if so, the basis used is disclosed. On the other hand Listed
Companies are required by BSEC to report on its ability to
continue as going concern.
Good governance is about the processes for making and
implementing decisions. It’s not about making ‘correct’
decisions, but about the best possible process for making
Q4 those decisions. It starts with a clear strategy for the
organization. In good governance, accountability is a
fundamental requirement and those charged with the
governance have obligations to report, explain and are
answerable for the consequences of decisions it has made.
In good governance, stakeholders should be able to follow
and understand the decision-making process. This means
that they will be able to clearly see how and why a decision
was made – what information, advice and consultation
considered, and which legislative requirements they
followed. In good governance, fairness and transparency
are always prioritized. Good governance identifies ways to
improve company practices and also promotes social good
by investing in the society. All men and women should have
a voice in decision-making. Reliance Insurance Limited has
CORPORATE GOVERNANCE

considered all the said characteristics of good governance

The Board of Directors of Reliance Insurance Limited
INFORMATION ABOUT

and applied in its decision making process. Strong and

has made annual assessment about whether there exist
ethical Board, sound decision making process, equitable
material uncertainties which may cast significant doubt
men and women representation in the Board, effective
upon the Company’s ability to continue as going concern.
management representation in the Board, qualified and
The director’s assessment of whether the company is
professional management, low employees turnover, steady
a going concern involves making appropriate inquiries
and stable growth, consistence return of investment,
including review of budget, forecast, assumptions and
compliances of laws and regulations are the instances of
future outcome of inherent uncertainties in existence. The
good governance realization.
154

NO. OF NON-SHAREHOLDING DIRECTOR Director in the Committee to preside over the Audit
Committee meeting in the absence of the regular Chairman
Board of Directors of Reliance Insurance Limited is
as per BSEC code.
constructed with 17 Directors, out of which 13 members
are Shareholding Directors and rest 4 members are
DIRECTORS’ MINIMUM SHAREHOLDING
Independent Directors with no shareholding.
As per BSEC Notification dated 21 May 2019. Each director
SINGLE FAMILY DOMINATION BOARD other than independent director of any listed company
shall hold minimum 2% (two percent) shares of the paid-
The board of Reliance Insurance Limited is constituted
up capital. The public subscriber’s directors of RIL are in
mainly with the nominated directors from various corporate
compliance with the said Notification of BSEC which is
bodies and therefore is not dominated by any single family.
show in the page no. 68 of Annual Report 2022.
SHAREHOLDING CONCENTRATION (PUBLIC)
AUDIT OPINION
Number of shares of public shareholding is 35,844,613
The Audit opinion on the Financial Statements for the
which is 34.09% of total number of shareholders.
year 2022 of Reliance Insurance Limited is an unqualified
AUDIT COMMITTEE LED BY INDEPENDENT DIRECTORS opinion. The reference page no. 104 of Annual Report-2022.

The Audit Committee is chaired by Mr. Azizur Rashid,

FCA, Independent Director. There is another Independent

Reliance Insurance Limited

Annual Report 2022
 155

Report of the
Audit Committee
The Audit Committee of Reliance Insurance Limited
comprises 3 (three) Directors nominated by the Board
of Directors as mentioned below. The Chief of Internal
Audit & Compliance Department has direct access to the
Committee and the Committee reports directly to the
Board. It operates according to the Terms of Reference as
approved by the Board and in compliance with Section 3
of the Securities and Exchange Commission Notification
No.BSEC/CMRRCD/2006-158/207/Admin/80 dated 3rd June
2018.
Members of Audit Committee:
Mr. Azizur Rashid, FCA Chairman
Mr. Imran Faiz Rahman Member
Mr. Md. Habibur Rahman Mollah, FCA Member
During its meeting held on October 27, 2022 the Audit
Committee reviewed and examined the internal audit reports
issued till that date and on 12th February, 2023, after review
recommended the audited accounts for the year 2022 to the
Board of Directors for their consideration and approval.
The External Auditors also participated in the meeting of the
Audit Committee on 12.02.2023.
The Audit Committee is of the view that the internal control
and procedures are adequate to present a true and fair view
of the activities and financial status of the Company. Finally,
the Audit Committee would like to convey their appreciation
to the members of the Board, key Management personnel
and Internal Audit & Compliance for their cooperation and
support received during the year 2022.

During the year under review i.e. 2022, four (4) meetings of
the Audit Committee were held to carry out the following
Azizur Rashid, FCA
tasks:
Chairman
Review and discussions on the Management Report by Audit Committee of the Board
External Auditor for the year ended December 31, 2022 Reliance Insurance Limited
and management’s response (s) to the report.

Review the proposals in order to recommend to the

Board the name of a Professional Firm for certification
for the year 2022 on compliance of Corporate
Governance Guidelines.

Review of quarterly, half yearly and Annual Financial

Statements.

Review of various reports of Internal Audit & Compliance

Department on operational, financial procedures and
Branch activities and recommendation of appropriate
measures to the management arising out of the
findings of such reports.

Review the status of report of Audit Plan 2022 and also

approval of the Audit Plan for 2023.

Review and monitor the progress regarding

implementation of “IFRS 17- Insurance Contracts”.
CORPORATE GOVERNANCE
INFORMATION ABOUT
156

Report of the Nomination and

Remuneration Committee
Reliance Insurance Limited has its Nomination and
Remuneration Committee (NRC) in compliance with
the Corporate Governance Code by BSEC (Bangladesh
Securities and Exchange Commission) and the Chairman
of the NRC is an Independent Director. Composition of the
NRC is as following;
1. Mr. Aniz-uz-Zaman Khan Chairman
2. Mr. Shamsur Rahman Member
3. Mr. Arshad Waliur Rahman Member
The Nomination and Remuneration Committee of Reliance
Insurance Limited operates in accordance with the Terms
of Reference as Approved by the Board of Directors in
compliance with the Code-6 of the Securities and Exchange
Commission’s Corporate Governance Code, Notification
No. BSEC/CMRRCD/2006-158/207/Admin/80 dated 3” June
2018.
Nomination and Remuneration Committee of the Board of
Reliance Insurance Limited had two meetings during the
year 2022 and the following decisions were made, these are;
company and recommend to the Board for the appointment
of Directors with diverse qualification and experience.
The Ukraine-Russia war and post Covid-19 economic
challenges pose great threat to the global economic
activities as well as the business activities of the companies.
RIL Human Resources Department with the direct guidance
of the top-management and the NRC, along with the
regulatory directives and prudently facing the challenges
posed to the company. It is also upholding the reputation
of the organization in terms of preferred choice for the
candidates among the non-life insurance companies of
Bangladesh.
The Chairman of Nomination and Remuneration Committee,
on behalf of all the members of the Committee extends
gratitude to all the Stakeholders, Management Team and
especially the Board of Directors of Reliance Insurance
Limited for their continued support during the year 2022
and expresses optimism for cooperation in the coining
years.

Review of the earlier meeting decisions of the Nomination

and Remuneration Committee. Review and recommend to
Aniz-uz-Zaman Khan Chairman
the Board of the renewal of tenure of the Chief Executive
Nomination and Remuneration Committee
Officer of Reliance Insurance Limited.
Reliance Insurance Limited
Shortlist, evaluate and recommend the potential candidate
for top-level executives of the Company.

Review remuneration of the employees including top-level

executives of the company. Review the succession plan of
the company especially for the vital positions of various
departments of the company.

Evaluate and recommend to the Board for the reappointment

of Independent Director.

For the ever changing need of the business environment

especially for the insurance industry, the Nomination and
Remuneration Committee emphasizes on finding and
selecting the rightful individuals with suitable skills and
experience to develop the human resources pool of the

Reliance Insurance Limited

Annual Report 2022
 157

Risk Management &

Control Environment

CORPORATE OBJECTIVES,
VALUES & STRUCTURE
158
Risk Management Framework
Risk is a reality for
business owners and
managers regardless of
the industry sector or size
of the company. Well-
run companies do have
a comprehensive risk
management framework
in place to identify
existing and potential
risks and assess how to
deal with them if they
arise. Risk identification,
measurement, mitigation,
reporting and monitoring,
and governance are the six
key pieces of an effective
framework.
Reliance Insurance Limited
Annual Report 2022
The insurance industry in Bangladesh, particularly, Non-life Insurance Companies
are increasingly facing new challenges of different nature over the years and to
encounter such challenges, proper risk management is of prime consideration.
Increasing pressure is mounting up day by day on the insurers for implementation
and professionalizing the existing risk management practices to cater to
requirements arising under changing environment.
Learning from the impact of different casualties which occurred in the past to
many organizations due to poor risk management, organizations are emphasizing
on upgrading of their risk management systems at this juncture in order to be
fully integrated into the day-to-day management of their business and needless to
mention, Executives are encouraging risk management information to disseminate
more widely throughout their organizations for better understanding and efficient
implementation.
The main benefit of efficient Risk Management for Insurers is that it promotes the
pragmatic risk management concepts, rather than merely technical calculations
and maintaining detailed theory of safety compliance, which makes easier for
even a layman to understand. What’s more, all concepts and terms are applied
to understandable illustrative examples and developments in the regulation with
supervision are simple to follow.
Risk management, as appropriate, is recommended for risk managers, actuaries,
controllers, as well as accountants, auditors, corporate finance managers, along
with underwriting and reinsurance managers, investment managers, equity
analysts and financial consultants, in particular.
Policyholders reduce uncertainty by transferring their risks on to an insurance
company. It is, therefore, quite obvious that insurance companies themselves are
exposed to risk and uncertainty. Most of the major uncertainties centre around
how many claims there could be during a particular period of time and how much
the insurer would require to pay for settling those claims. These uncertainties
have a big influence on determination of pricing or the premium for the insurance
protection provided and how much the insurer needs to reserve for future claims
payments including Claims incurred but not reported (IBNR). Other risks to the
insurer include: recovery of fixed expenses, failure of other parties (e.g., brokers
or reinsurers), fall in asset values and the insurance cycle, regulatory changes
resulting in increase in fees and taxes The size of the free reserves will influence
the ability of the insurer to cope up with these risks as will reinsurance cover and
the returns from investment of its assets.
Risk is a concept that denotes a potential negative impact to an asset which may
arise from the present process or from any future event. In everyday usage, “risk”
is often used synonymously with the probability of a known loss. Risk may also be
perceived as the cumulative effect of the chances of uncertain occurrences that
is likely to affect the project objectives adversely. More specifically, it is the degree
of exposure to negative events and their probable consequences.
RISK DEFINED
Risk is an integral part in our daily life and is associated with the probability of
an unfortunate event to occur with its possible detrimental consequences. The
fundamental feature of risk lies in the unpredictable and uncertain nature of the
events, possible combination of hazards/threats to any venture/life causing the
possibility of loss. Risks may be categorized into two fundamental types, viz,
speculative risks (where there are chances of gain/loss) and pure/operational risk
(which is rather associated with unpredictable consequence of loss).
RISK MANAGEMENT
An organization needs to analyse and comprehend critically the risks to which
it is exposed and the possible quantum of loss associated with such risks.
After obtaining clear understanding of the risk and consequences thereof, the

management of an organization can make decisions about
the acceptability or otherwise in relation to those exposures.
Risk management thus enables a management to effectively
deal with uncertainty and its associated risks along with
the opportunity for capacity building. The fundamental
objective of risk management is preservation of assets and
earning power from potential loss or destruction.
The role of risk management in the operation of an
insurance company, specially, in case of non-life insurance
organizations, it is of immense importance. This is because
enterprises prefer to transfer their risk on the insurer as
a transfer mechanism which is part of their overall risk
management and the insurer has to manage the acquired
risks in such a competent way to operate their business with
profitability even after adequately settling of claims to retain
customer confidence as a trusted insurer. There lies the
operational challenge for risk management on the part of a
non-life insurance company, like Reliance Insurance.
The process of risk management can be viewed with
the underlying five prime stages: i) identification of risk
factors, ii) analysis of risk factors, iii) evaluation of risk, iv)
risk inspection and reporting at regular interval, v) control /
mitigation of risk, and finally, v) risk financing upon review of
the ensuing risk factors for loss minimization.
RISK MANAGEMENT FRAMEWORK
Risk management framework of an enterprise is greatly
influenced by the risk perception of its management.
Risk perception may vary from one to another among
organizations depending on the risk factors pertaining to
the nature of venture, socio-economic threats, volatility of
political and legal environment, possibility of act of god
occurring in relation to geographical strata/position, etc.
and finally, on the financial strength of the entrepreneur.
Reliance’s Challenges to its Risk: Considering the nature of
business, Reliance actively seeks to retain risks as appropriate
for which it has to emphasize on effective enterprise risk
and capital management. Under the supervisory control
of the Insurance Development and Regulatory Authority
of Bangladesh (IDRA), while bolstering the operation of
insurance business, Reliance always prefers to pay its due
attention to the volatility of earning through proper decision-
making process, improvement of underwriting skills and
compliance with the corporate governance. Additionally,
Reliance leaves no stone unturned to face the challenges
set by not only the customers, investors, rating agencies,
and auditors but also by the regulatory body IDRA.
Risk management is a continuous process that involves
assessment, monitoring and managing of risk factors
commensurate with the corporate philosophy and objective
towards achieving ultimate goal for a particular period.
Reliance Insurance prefers to rightly identify its corporate risks
associated with internal and external forces. Such internal/
external risks as addressed by Reliance Insurance include:
Operational risks in relation to insurance underwriting
risks, regulatory risks and re-insurance risks (based on
which Reliance has developed its underwriting policy /
guideline). Apart from that Reliance has also developed its
Human Resource policy in view of the operational risks for
procurement/ retaining its efficient workforce to effectively
encounter the operational hazards faced by of the company.
159
Strategic risks are mostly associated with the rival
marketing moves for penetrating the insurance market. In
order to achieve and retain its market position and steer
toward betterment, Reliance insurance prefers to adopt its
business strategy based on focus to market penetration and
particular concentration to market segment which is greatly
dependent on market intelligence or market information.
Based on own past experience and market information,
Reliance’s strategy also emphasizes underwriting of quality
risks. Non-life insurance is a service, which is quite sensitive
to overall risk perception prevailing in the country and
to a great extent reliant on regulatory compliance and
the country’s socio-politico-economic conditions, thus
managing strategic risks are quite regular phenomena.
Financial risks involve liquidity and investment risks,
and claims reserving risks. To ensure transparency and
accountability within the activities of the company is
essential for managing financial risks. Reliance prefers a
conservative investment policy guided by the Board and
its performance in terms of liquidity position, investment
portfolio, cash flow status, claims reserve position, etc. are
regularly monitored by the Board. For such financial risk
management, Reliance has an efficient internal control
mechanism.
Environmental and technological risks are also ever
emanating risks to which Reliance has been always attentive.
Full compliance in respect of all environmental laws and
regulations are strictly observed in its operations. Besides,
risks associated with technological changes are managed
as well. In view of the need for being adaptive to modern
information technology, Reliance has developed computer
integrated insurance software (CIIS) to ensure faster and
uniform quality of service and thereby manage the modern
technological risks.
KEY COMPONENTS OF RISK
In modelling risk, experts pay special attention to the
following key components of risk for each peril. The
modelling tools described later will need reflect the
following components of risk resulting from each peril.
Volatility refers to the amount of uncertainty or risk about
the size of changes in a security’s value. A higher volatility
means that a security’s value can potentially be spread
out over a larger range of values. A lower volatility means
that a security’s value does not fluctuate dramatically, but
changes in value at a steady pace over a period of time.
In Non-life insurance, for some types of business, the size
of possible claims covers a very wide range, and there is
consequent uncertainty as to whether the claims that have
actually occurred can properly be regarded as typical of
what might be expected to occur.
The variance of aggregate claim amounts will increase,
CONTROL ENVIRONMENT
RISK MANAGEMENT &
if there is non-independence of risks. Therefore,
accumulations of risk will increase the uncertainty relating
to the variability in size of claims.
The higher the level of random variation, the smaller will be
the portfolio of business. This problem is therefore greater
for small companies (or small classes of business) where
one would expect a larger variation from year to year.
160
Uncertainty is the inability to predict the future with
confidence. Because of the presence of uncertainty, we
need to consider the effects of possible deviations from the
projected figures. The greater the uncertainty, the greater
the risk.
The uncertainties faced by a Non-life insurer can be
considered under two main headings:
Uncertainty as to the outcome of the business already
written
Uncertainty as to the premiums the insurer needs to
charge in future to achieve a desired financial result.
TYPES OF RISKS
Most Companies approach with an Enterprise Risk
Management (“ERM”) framework, which is a companywide
approach to identify, assess, measure, monitor, control
and mitigate risks that arises from the company’s business
activities. The risk management process includes (i) Risk
Identification, (ii) Risk Assessment and Measurement, (iii)
Risk Controls and mitigation, and (iv) Risk Monitoring and
Review.
Underwriting Risk
The key insurance risks for general insurance contracts arise
from uncertainty in the timing and amount of claims. The
Company addresses these risks through its underwriting
and reinsurance strategy. The Company also monitors and
reacts to changes in the general economic and commercial
environment in which it operates,
The underwriting strategy of the Company is to seek
diversity to ensure a balanced portfolio.
The general insurance underwriting function’s performance
and adherence to the underwriting guidelines/authority
limits are measured on a periodic basis.
Insurance underwriters evaluate the risk and exposures of
the prospective clients. They decide how much coverage
the client should receive, how much they should pay for
it, or whether to even accept the risk and insure them.
Underwriting involves measuring risk exposure and
determining the premium that needs to be charged to
insure that risk. The function of the underwriter is to acquire
or to “write” - business that will make the insurance company
money, and to protect the company’s book of business
from risks that they feel will make a loss. In simple terms,
it is the process involving decision making and processing
culminating in issuing of insurance policies.
Underwriting decisions would typically be influenced by
PML (Probable Maximum Loss) evaluations, and the amount
of reinsurance ceded on a risk would normally be predicated
on the PML valuation. PML is the anticipated value of the
largest loss that could result from the destruction and the
loss of use of property, given the normal functioning of
protective features (firewalls, sprinklers, and a responsive
fire department, among others, in the case of a fire loss).
This number is usually smaller than the (MFL) maximum
foreseeable loss, which assumes the failure of all protective
features.
At the most basic level, managing catastrophe risk involves
ensuring that insurers and reinsurers are able to remain
Reliance Insurance Limited
Annual Report 2022
viable following losses from a ‘probable maximum’ event.
For the most part, insurers and reinsurers approach PML
management by planning for the eventuality of a large
natural catastrophe and having quantified their risk
accordingly.
Concentrations of insurance risk
A key aspect of the insurance risk faced by the Company
is the extent of concentration of insurance risk which may
exist where a particular event or series of events could
impact significantly upon the Company’s liabilities. Such
concentrations may arise from a single insurance contract
or through a small number of related contracts, and relate
to circumstances where significant liabilities could arise.
An important aspect of the concentration of insurance
risk is that it may arise from the accumulation of risks
within a number of individual classes or contracts tranche.
Concentrations of risk can arise in both high-severity, low
frequency events, such as natural disasters and in situations
where underwriting is biased towards a particular group,
such as a particular geographic or demographic trend or
a particular group of companies that belong to the same
shareholder.
The Company’s key methods in managing these risks are
as follows:
Firstly, the risk is managed through appropriate underwriting
procedures. Secondly, the risk is managed through the use
of reinsurance.
Reinsurance Risk
Ceded reinsurances contain credit risks, and such
reinsurance recoverable is reported after impairment
provisions as a result of occurred recognised asset. The
Company monitors the financial condition of reinsurers on
an on-going basis and reviews its reinsurance arrangements
periodically.
Credit Risk
Credit Risk is the risk which occurs due to an uncertainty in
a counterparty’s (also called an obligor’s or credit’s) ability
to meet its obligations. In assessing credit risk from a single
counterparty, an institution should consider three issues:
Default Probability: What is the likelihood that the
counterparty will default on its obligation either over the life
of the obligation or over some specified horizon, such as a
year? Calculated for a one-year horizon, this may be called
the expected default frequency.
Credit Exposure: In the event of a default, how large will the
outstanding obligation be when the default occurs?
Recovery Rate: In the event of a default, what fraction
of the exposure may be recovered through bankruptcy
proceedings or some other form of settlement?
Market Risk
Market Risk is the risk to an institution’s financial condition
resulting from adverse movements in the level or volatility
of market prices of interest rate instruments, equities and
currencies. Market risk is usually measured as the potential
gain/loss in a position/portfolio that is associated with a

price movement of a given probability over a specified time
horizon. Market risk is that the value of an investment will
decrease due to moves in market factors and the three
standard market risk factors are:
Equity Risk: Equity risk is the risk that one’s investments will
depreciate because of stock market dynamics causing one
to lose money.
Interest Rate Risk: Interest rate risk is the risk that the relative
value of an interest-bearing asset, such as a loan or a bond,
will worsen due to an interest rate increase. In general, as
rates rise, the price of fixed rate bond will fall, and vice versa.
Longer dated bonds are more sensitive to interest rate
movements than short dated bonds. It is assumed that risk
adverse investors will require compensation (in the form
of higher yields) for the greater risk of loss on the longer
bonds. This might explain some of the excess return offered
on long-terms bonds.
Currency Risk: Currency risk is a form of risk that arises
from the change in price of one currency against another.
Whenever investors or companies have assets or business
operations across national borders, they face currency risk
if their positions are not hedged.
Operational Risk
Operational risk is the risk of loss resulting from inadequate
or failed internal processes, people and systems, or from
external events. However this definition includes legal risk
but excludes systematic risk and reputational risk.
During the early part of the decade, much of the focus
was on techniques for measuring the managing market
risk. As the decade progressed, this shifted to techniques
of measuring and managing credit risk. By the end of the
decade, firms and regulators were increasingly focusing on
risks “other than market and credit risk.” These came to be
collectively called operational risks. This catch-all category
of risks was understood to include.
Employee errors
Systems failures
Fire, floods or other losses to physical assets
Fraud or other criminal activity
Operational risk has primarily emerged from banking
industry. In banking industry thousands of transactions
are processed each day therefore the amount of data in
respect of losses arising from operation failures is more
abundant. This naturally lends itself to the development of
frequency and severity models to evaluate the aggregate
loss distribution and hence the capital requirement.
Operational risk has been recognized as an important risk
for insurers as well as for banks. But a challenge for insurer’s
in assessing operational risk is to separate this risk from
the loss experience data typically collection for the other
161
underwriting, credit and market risk. For example, insurer
will need to examine the portion of their underwriting losses
that are really due to ineffective or faulty underwriting
processes or client management.
Liquidity Risk
An important aspect of the Company’s management of
assets and liabilities is to ensure that cash is available to
settle liabilities as they fall due. The Company is exposed
to liquidity risk when it is unable to meet its obligations at a
reasonable cost.
The Company maintains cash and liquid deposits deemed
adequate by management to finance its operations and to
mitigate the effects of fluctuations in cash requirements.
In normal circumstances, the majority of claims are settled
with the bank balances and cash deposits available. The
Company also constantly reviews its investment portfolio
allocation to ensure that there are sufficient cash and
liquid deposits to meet its estimated cash outflow from its
insurance contracts. The Company monitors the liquidity
risk through the periodic tracking of the liquidity of relevant
insurance funds and through the performance of liquidity
stress tests.
The risk that arises from the difficulty of selling an asset
is perceived as the liquidity risk. An investment may
sometimes need to be sold quickly. Unfortunately, an
insufficient secondary market may prevent the liquidation
or limit the funds that can be generated from the asset.
An institution might lose liquidity if its credit rating drops
down, or it experiences sudden unexpected cash outflows,
or some other event causes counterparties to avoid trading
with or lending to the institution. A firm is also exposed to
liquidity risk if markets on which it depends are subject to
loss of liquidity.
From insurance context, liquidity risk is the exposure to loss
in the event that insufficient liquid assets will be available
from among the assets supporting the policy obligations
to meet the cash flow requirements of the policyholder
obligations when they are due.
CONCLUSION
Over the last decades, the insurance industry has grown
increasingly sophisticated in its ability to understand
and manage risk with a view to engaging in sustained
development. Following a string of natural catastrophes
occurring in later part of the 20th century, insurers-
reinforced by the activities of catastrophe modellers, rating
agencies, reinsurers, and the capital markets – made a
priority to quantify their risk and manage their exposures
to acceptable levels. More recently, industry leaders have
begun to take a more holistic view of risk, capital, and return.
The more research we have in analysing and assessing Risks
from multi-dimension perspective, technical abilities to
CONTROL ENVIRONMENT
manage Risks in the most scientific and efficient ways will
RISK MANAGEMENT &
enhance and benefit enterprises.
162
Risk Mitigation Methodology
Risk mitigation refers to the process of planning and developing methods and options
to reduce threats or risks, to project objectives. A project team might implement risk
mitigation strategies to identify, monitor and evaluate risks and consequences inherent
to completing a specific project, such as new product creation.
A Risk can never be eliminated in full; it can merely be
minimized to a certain reasonable extent. Risk management
decisions, therefore, involve physical loss prevention
measures and risk financing tools toward minimizing risks
associated with it.
Appropriate risk mitigation involves first identifying
potential risks to a project and then planning for the risk
by implementing strategies to help lessen or halt the risk.
There can be five broad strategies that can be used in risk
mitigation planning and monitoring:
1. Assume and accept risk: It is coming to terms that the risk
exists and there is nothing one will do to mitigate or change
it. Instead, one understands the probability of it happening
and accepting the consequences that may occur. This is
the best strategy when risk is small or unlikely to happen.
It makes sense to adopt risk when the cost of mitigating
or avoiding it will be higher than merely accepting it and
leaving it to chance.
2. Avoidance of risk: If a risk is too large to accept, it may
be better to avoid it. In this case, risk avoidance means not
performing that activity that causes the risk. While some
people are more risk-loving and others are more risk-averse,
everyone has a tipping point at which things become just
too risky and not worth attempting.
3. Risk Mitigation: When risks are evaluated, some risks are
better not to avoid or accept. Risk mitigation refers to the
processes and methods of controlling risk. When risk and its
probability can be identified, one can allocate resources for
its management.
4. Controlling risk: Businesses can assign a level at which
risk is acceptable, which is called the residual risk level. Risk
reduction is the most common strategy because there
is usually a way to at least reduce risk. It involves taking
countermeasures to decrease the impact of consequences.
5. Transference of risk: When risks are identified and
taken into account, mitigating the consequences through
transference can be a viable strategy. The transference
strategy works by transferring the strain of the risk and
consequences of another party.
RISK MITIGATION AND TRANSFER
Physical loss preventive measures include: compliance of
a number of safety rules guided by Factories Act, Building
Code, etc. Installation of proper fire-fighting equipment,
Reliance Insurance Limited
Annual Report 2022
checking performance of those equipment and apply
improvements wherever required, conduct fire drill at
regular intervals with proper record, Maintenance of clean,
wholesome and apparently risk-free environment for the
workers as well as for the overall workplace.
Risk financing tools include decisions regarding partial risk
retention with acceptance limit and spreading / transfer of
the remaining portion of risk.
It is imperative for an insurer to take different steps to
lessen the risk associated with its business. These include:
purchase of adequate reinsurance protection, securitization
of a portion of it’s asset or liability portfolio, hedging of
financial guarantees using derivative instruments, use
of product design to pass on the risk to policyholders as
well for active risk management to the extent that these
measures effectively reduce a company’s risk. Appropriate
attention and recognition should be given in the calculation
of a company’s required capital. The difficulty lies in properly
assessing the actual degree of risk with regard to short term
and long term economic, technical, and regulatory changes
that has been transferred from the insurance company in
these arrangements.
REINSURANCE
Reinsurance is a process of risk transfer, whereby the
insurance company passes on some of its risks to another
party – a reinsurer.
Reinsurance is primarily a means of reducing an insurer’s
exposure from underwriting risk, allowing it to expand
the scope of its business. The cost of transferring risk to a
reinsurer is lower than the solvency capital cost the insurer
would bear if it retained the risk in it’s portfolio, because
reinsurer benefit from better risk diversification than a
primary insurer.
Reasons for using reinsurance:
Reducing the effects of large single losses
Minimising impact of risk accumulation and
catastrophic losses
Smoothing of results
Availability of expertise
Increasing capacity to accept risk
Financial assistance.

REDUCING THE EFFECTS OF LARGE SINGLE LOSSES
What is large to an insurer will depend on the size of the
free assets available. A very large Fire Loss on a high valued
industrial unit may upset the results of the portfolio for the
entire year. Many risks in insurance have very high limits
of liability (sums insured); Many small to medium sized
insurance companies would prefer to cede a top slice or
potentially large pay-outs to reinsurers as cover against this
eventuality. This is especially true in liability lines of business
where excess of loss reinsurance is a commonplace.
MINIMISING IMPACT OF RISK ACCUMULATION AND
CATASTROPHIC LOSSES
Losses due to conflagration, manmade disasters and natural
catastrophes obviously create huge liability for an insurer
and this calls for properly designed adequate Reinsurance
protection from financially sound Reinsurers. The insurers
potential liability from such events need to be assessed
properly, also taking into account of geographical spread
and accumulation of losses.
SMOOTHING OF RESULTS
The principle whereby reinsurance covers the larger risks
or accumulation of smaller risks above certain limits helps
to achieve a smooth development of accounts year-on-
year, especially when the portfolio is relatively immature. A
premium is paid to mitigate these fluctuations and the net
result is more predictable for the insurer, a predictability
that may also be more acceptable to shareholders and
regulators. Stop loss is a form of reinsurance that is used for
these purposes.
AVAILABILITY OF EXPERTISE (NEW OR UNUSUAL
RISKS, NEW TERRITORIES)
When an insurer is adopting a strategy that will take it into
new risk areas where it has little previous experience, the
Reinsurer can sometimes help with rating, underwriting
and claims management. Leading Reinsurers, having broad
relationship with an insurer, also extend their services for
developing a new class of business.
INCREASING CAPACITY TO ACCEPT RISK (SINGLY OR
CUMULATIVELY)
Owing to insufficient capital backing, an insurer may be
reluctant to accept, or incapable of accepting, particular
risks by sector or by volume. An insurer may also be
reluctant to accept a particular risk if it would be exposed
to an accumulation of risk as a result. Reinsurance cover
can obviate this situation. The solvency requirements for
a particular line of business are normally reduced in line
with the proportion ceded, though this may be subject to
an upper limit. Surplus treaty or excess of loss reinsurance
might be used here.
FINANCIAL ASSISTANCE (NEW BUSINESS , MERGER/
ACQUISITION, BOLSTERING FREE-ASSETS)
To a lesser extent than in life insurance, reinsurance funds
are available to assist financially with particular business
propositions. Where a particular distribution strategy
would involve substantially more cash outflow in the initial
stages than premium income, reinsurance commission
may be available to “factor” future surplus streams, i.e., lend
163
now against the predicted future flows of premiums less
expenses and claims.
HEDGING
In finance, a hedge is an investment that is taken out
specifically to reduce or cancel out the risk in another
investment. Hedging is a strategy designed to minimize
exposure to an unwanted business risk, while still allowing
the business to profit from an investment activity.
A natural hedge is an investment that reduces the undesired
risk by matching cash flows, i.e., revenues and expenses.
For example, writing both life insurance and life contingent
annuities for similar groups of policyholders may help to
provide a hedge against the impact of improving mortality.
One of the oldest means of hedging against risk is the
purchase of insurance to protect against financial loss due
to accidental property damage or loss, personal injury, or
loss of life.
Introduced in 2000 by the National Stock Exchange,
derivatives are a different breed of financial products whose
value is derived from an underlying instrument, such as: an
index, a stock, a currency or a commodity. Thus, instead of
directly investing in a stock, invest in an instrument whose
value is dependent on the price of that stock. Futures and
options are two popular and actively traded derivative
instruments in the Indian stock market.
In particular, we can use derivatives to reduce the exposure
of our portfolio to the risk of adverse movements in the
market price of the underlying assets. If, for example, we are
concerned about falls in the investment market, we might
buy put options. By guaranteeing the price at which we can
sell out assets - this removes the risk of market falls. We will
still, however, enjoy the resulting profits should the market
instead go up.
Derivative contracts, therefore, provide us more control
over the market risks that we face; thereby increasing our
opportunity set of possible risk and return combinations.
Moreover, if we hold suitable derivatives and the underlying
assets in appropriate combinations, then we can sometimes
eliminate almost all of the market risks facing our portfolio
although other risks like lack of marketability or credit risks
will still remain.
Risk financing tools include: decisions regarding partial risk
retention with acceptance limit and spreading / transfer
of the remaining portion of risk. Thus, one of the vital
risk-minimizing tools is insurance; because insurance is a
mechanism of spreading or transferring the risk of one onto
the shoulders of many. It has two fundamental features: one
is shifting of risk from one individual to a group, and the
CONTROL ENVIRONMENT
other is sharing of losses on equitable basis by all members
RISK MANAGEMENT &
of the group.
Whilst it becomes almost impossible for an individual to
bear the entire loss of one’s property or interest by oneself
arising out of unforeseen contingency, risk financing
method allows the aggrieved individual to shift the burden
of loss on others within the group.
164
Disclosure of Risk Reporting
The corporate disclosure of relevant information is very
important for effective decision-making by investors
and other stakeholders. Companies provide information
through various mandated and voluntary means. Mandated
disclosures include financial reports and other regulatory
filings, while voluntary disclosures are those made in
addition to disclosures mandated by regulations, such
as company presentations or profile and other ad hoc
disclosures.
Disclosure requirements for mandated financial reports are
typically set out in country legislation, stock exchange listing
rules, national generally accepted accounting principles
and the International Financial Reporting Standards (IFRS)
The objectives of financial reporting are to provide financial
information to equity and debt capital providers useful in
decision-making.
Pressure on companies to voluntarily provide more frequent
disclosures, such as quarterly earnings guidance, has led
to the view that companies have become too focused on
delivering short-term results, potentially at the expense of
their long-term viability.
Investor demand for greater transparency includes
increasing requests for the disclosure of non-financial
information, such as environmental, social and governance
data. Central to this demand is the argument that the
disclosure of such data improves the ability of investors to
evaluate and understand a company’s long-term risks and
that it is therefore relevant to investment-related decision-
making.
Reliance Insurance endeavours to provide full disclosure
information and meet all disclosure demands, mandated
and non-mandated, as outlined above.
Disclosures relating to Risk reporting ensure proper
identification of physical hazards based on risk factors,
analysis on appropriate measures to control risks and the last
but not the least, to decide on the extent of risk financing.
Reliance Insurance, through their expert professionals
time and again imparts awareness to the clients toward
achieving the objectives of how to analyse the risk factors
associated with different activities, observe how risks can
affect decision making process, and how operational risks
can be managed properly by arranging adequate insurance
protection.
Reliance Insurance Limited
Annual Report 2022
The basic risk specific information which need to be
gathered and recorded are: (a) disclosure of risk in
respect of date and time of occurrence of the incident
along with its corresponding extent of loss (b) internal
enquiry report which identify the possible cause of such
incident, measures taken to control the loss, regular safety
compliance and maintenance records, etc. - all of which
must be documented so that proactive measures for loss
prevention can be prescribed.
Transparency is the key to the existing risk management
system that Reliance Insurance always encourages its
clients to maintain; Risk reporting disclosure ensures
such transparency. It helps maintain records to aid in risk
inspection properly and thus arrange for proper insurance
protection and provide further advisory support for better
risk management.
It is also imperative for an enterprise to ensure all
environmental safety compliances and the enterprise must
not be responsible for any casualty due to any default/
negligence in construction and maintenance of their
factory / office premise.
Reliance Insurance thus ensures/ encourages proper risk
management of their clients that benefits them by saving
resources. The clients’ time, assets, property, income, and
people - all are valuable resources that can be saved if
fewer claims occur. Proper risk management also ensures
protecting the reputation and public image of the clientele,
preventing or reducing legal liability and increasing the
stability of operations; it creates awareness in protecting
people from harmful events, and thereby protecting the
environment by enhancing competence and efficiency
by reducing liabilities, and also assisting in clearly defining
insurance needs.
Reliance Insurance though cannot entirely eliminate risks
of its clientele, but through its experience of efficient
risk management practice, endeavours to set forth its
commitment to help its clients in loss minimization or
provide advisory support for loss prevention and thus makes
the client to manage a better risk to insure as well. Our
concerted efforts thus help to control overall manufacturing
and business environment. After all, following a loss while
the economic consequences are made up through the
mechanism of Insurance, we can never make up the effects
of the loss on human beings, to the society, country and
world at large.
 165

Information on Company’s
Internal Controls
Internal Control is a system consists of all the policies
and procedures (Internal Controls) adopted by the Audit
Committee, by the management of Reliance to assist in
achieving management’s objective of ensuring, as far
as practicable, the orderly and efficient conduct of its
business, including adherence to management policies,
the safeguarding of assets, the prevention and detection
of fraud and error, the accuracy and completeness of the
accounting records, and the timely preparation of reliable
financial information. The internal control system extends
beyond these matters which relate directly to the functions
of the accounting system.
Internal Control is a continuous set of process carried out by
the Board of Directors, the Audit Committee, management
and all personnel, designed to provide reasonable assurance
of:
Effectiveness and efficiency of operations.
Reliability of financial and non-financial information.
An adequate control of risks.
A prudent approach to business.
Compliance with Laws and Regulations, and internal
policies and procedures.
Internal control should strengthen the internal operating
environment of the Company, thereby increasing its
capability to deal with external and internal events and
uncover possible flaws and deficiencies in process and
structures.
The Auditor should obtain the understanding of the
accounting and internal control systems sufficient to plan
the audit and develop the effective audit approach. The
auditor should use professional judgment to assess audit
risk and to design audit procedures to ensure it is reduced
to an acceptably low level.
Audit risk has mainly three components: (a) Inherent Risk (b)
Control Risk (c) Detection Risk.

A B C
INHERENT RISK

In developing the overall audit

plan, the auditor should assess
inherent risks at the Financial
Statement level. In developing
the audit program, the auditor
should relate such assessment
to material account balances
and classes of transactions at
the assertion level, or assume
that inherent risk is high for the
assertion.
CONTROL RISK

The assessment of control risk

is the process of evaluating the
effectiveness of the company’s
accounting and internal
control systems in preventing
or detecting and correcting
material misstatements. There
will always be some control
risk because of the inherent
limitations of any accounting
DETECTION RISK

The level of detection risk

and internal control system.
relates directly to the auditor’s
substantive procedures.
The auditor’s control risk
assessment, together with
the inherent risk assessment,
influences the nature, timing
and extent of substantive
procedures to be performed
to reduce detection risk, and
therefore audit risk, to an
acceptably low level. Some
detection risk would always be
present even if an auditor were
to examine 100 percent of
the account balance or class
CONTROL ENVIRONMENT

of transactions because, for

RISK MANAGEMENT &

example, most audit evidence

is persuasive rather than
conclusive.
166
INTERNAL CONTROL PRINCIPLES
The following principles will be applicable to insurance
undertakings’ internal control:
A. CONTROL CULTURE
The Board of Directors is responsible for promoting a high
level of integrity and for establishing a culture within the
Company that emphasizes and demonstrate to all levels of
personnel the importance of internal control. Management
is responsible for the implementation of the internal control
culture and principles. All personnel need to understand
their role in the internal control process and be fully
engaged in the process.
A good Internal Control Culture helps mitigate
reputation risks. Reputation is the resulting image of the
Company, and relies on aspects such as relationship
with customers, quality of services and products,
transparency, as well as profit to shareholders.
All personnel within the Company have an Internal Control
responsibility. It is therefore essential that all of them
understand the importance of internal control and engage
actively in the process according to their responsibilities
and specific duties. Written codes of conduct should be
drawn up. Responsibilities, accountability, procedures,
information and reporting channels amongst others
should be documented as appropriate.
Competence should reflect the knowledge and skills
needed to accomplish different tasks. The Audit
Committee or the Management should specify the
competence levels, knowledge and skills for particular
jobs.
B. RISK ASSESSMENT
In establishing and maintaining an effective system of
internal control an insurance undertaking should regularly
assess both the internal and external risks that it faces.
Assessment should include the identification and analysis
(using quantitative and/ or qualitative tools) of all the
significant risks that Reliance is exposed to, and act
accordingly.
The Company’s risk assessment activities should
be proportionate to the size and complexity of its
business. The Company’s approach to risk assessment
should also be influenced by the nature of the risks
that it faces.
The Company should assess:
a) the risks that it is in the business of taking, for
example, underwriting risks, provisioning risk and
market risk.
b) Any other relevant risks that it is not in the business
of taking, but which are a by product of its business
activities. For example, internal governance, and
control risk, business continuity risk, people risk.
c) The business opportunities underlying the different
risks.
Reliance Insurance Limited
Annual Report 2022
The Company should plan and document its risk
assessment objectives, as well as the assumptions and
methodologies that it intends to use when assessing its
risks.
Attention should be paid to the different importance
and incidence of risks for different products.
The level of risk tolerance should be established by the
Audit Committee / or Management of the Company,
and reviewed on a periodical basis, at least annually.
Risk assessment should be on-going, with processes
such as risk identification and analysis repeated as
necessary. In addition, the whole assessment process
should be benchmarked within the Company, and
reviewed periodically, as new risks appear, and existing
ones may change.
The Company should create an appropriate culture
and controls to support its risk assessment activities.
This culture should encourage staff from all parts of
the Company to contribute to the identification and
analysis of risk.
C. CONTROL ACTIVITIES AND SEGREGATION OF DUTIES
An adequate Internal Control system requires the
implementation of effective and efficient control activities
at all levels of the Company. They should be implemented
by the management in line with the goals and strategies set
up by the Board of Directors, should involve all personnel. As
an integrated part of daily business, these activities should
be reviewed and recorded on an on-going basis. Efficient
Internal Control system of Reliance demands an appropriate
segregation of duties and clear lines of responsibilities, both
at individual level and between functions.
Control activities should be linked to the risk assessment
process, as long as they tackle those risks previously
identified and analyzed by the insurance undertakings.
They should address efficiently the process of defining
adequate limits for exposure to risk as well as policies
and procedures aiming to adjust business activities to
the strategic decisions the risk profile.
In general, control activities should not only serve to
detect but also to prevent problems.
Control activities should be carried out through all
levels of the Company enhancing transparency of
every business activity and involving the Board of
Directors, the management and all other personnel of
the Company in those activities.
Control activities consist of a variety of procedures and
policies. Specific control activities should be defined
and implemented for the main activities within the
Company, including the following:
1. Underwriting Policy- Control activities should
ensure that underwriting activities are in line with
strategic goals and internal risk tolerance policies,
ensuring that the product design is accompanied
by a technical analysis of the risk profile, in order to
ensure correct premium pricing.

2. Distribution Channels- There should be clear
rules for all distribution channels, with defined
responsibilities for the supervision of both internal
and external persons involved in distribution.
3. Claims Management- The processing and follow
up of claims, as well as their amount and frequency
should be accurately documented. This should be
done both for each claim and for every Branch the
underwriting is authorized to operate.
4. Investment Policy- including control of
operations with derivatives and safeguarding of
assets. Insurance undertakings should define
an investment policy in accordance with their
commitments. A continues follow-up of its
content, the investment policy, and the degree
of compliance with it should be done within the
Company. Special attention should be paid to
financial derivatives through the establishment
of detailed internal rules which should be closely
observed. Such rules should be determined the
maximum acceptable risk exposure.
5. Fulfillment of the solvency requirement-
Analysis of the solvency implications of the
business written, to ensure that there are sufficient
economic resources to absorb losses that may
occur from technical or other risks.
6. Accounting Policy- Control activities must
ensure that accounts give a true and fair view
of a company’s assets and liabilities, its financial
position, and whether it is compliant with applicable
laws and regulations e.g. Internal Control systems
should foresee the reconciliation of accounts.
7. Protection of the Insured/Assured- The
Company should implement effective systems to
deal with policyholders’ claims and complaints.
8. Control of the Reinsurance Program and other
risk transfer instruments- A good reinsurance
program should be seen as an essential
mechanism for the undertakings to lesson their
exposures. Thus effective protection depends on
the sufficiency and adequacy of the reinsurance
program, as well as on the quality and solvency of
the reinsurers.
9. Information systems- Control activities must
ensure that accurate information is provided on
a timely basis. Information systems should allow
the recording of all transactions made by the
Company.
10. Anti-money Laundering Procedures- Control
activities must ensure that adequate measures are
taken to investigate suspicious transactions.
D. INFORMATION & COMMUNICATION
Insurance Undertakings should have reliable information at
all levels within their organization, in order to define, achieve
and review the objectives set by the Board of Directors,
167
through effective decision-making processes. Internal
Control system should be internal as well as external, and
may include both formal and informal paths.
Insurance Undertakings should have both financial
and non-financial information relating to the post
and current situation of the Company, obtained both
internal and on external bases. The same rule of thumb
should apply to operational data, for example data
on compliance with external regulations and internal
procedures.
Information should have at least the following
characteristics and information gatherings controls
should reflect these:
(1) Accurate: information should be contrasted and
verified upon being obtained and prior to use.
(2) Complete: information should cover all relevant
aspects of the undertaking on quantitative and
qualitative terms, as well as indicators which only
have a direct and indirect impact on the business
plan.
(3) Timely: information should be available on a timely
basis, so as to facilitate effective decision making
thereby enabling the undertaking to anticipate and
react to furniture events.
(4) Consistent: information should be recorded
using models which allow for information to be
compared both horizontally and vertically.
(5) Transparent: information should be presented in
a manner which is easy to interpret, ensuring that
the key elements of the information are clear.
(6) Relevant: All information used should relate
directly to the purpose for which is required, as
well as being reviewed and improved continuously
to ensure that it is consistent with the needs of the
Company.
Accounts department should be compliant with all the
aforementioned characteristics for information as well
as with their applicable legislation.
Management should be responsible for ensuring all
employees are familiar with their roles, responsibilities
and duties in relation to internal control, as well as the
objectives of the undertaking. Employees should be
aware of the importance of Internal Control in relation
to their work as well as the Company’s goals. They
should know and understand the Company’s strategic
CONTROL ENVIRONMENT
objectives and organizational plans. Guidance on
RISK MANAGEMENT &
technical and accounting information which may
affect the performance of the job should be given.
Information coming from third parties on the
deficiencies or weakness of the undertaking’s
Internal Control should be seriously considered when
improving Internal Control systems.
168
E. INFORMATION AND COMMUNICATION
TECHNOLOGIES
Insurance Undertakings should implement Information and
Communications Technology (ICT) systems appropriate
to the activities they carry out, their strategies and needs.
Security controls for the risks inherent in ICT should be
established to effectively enhance management of these
risks, allowing the Company to recognize both the potential
benefits and the associated risks of such systems.
F. MONITORING
Insurance Undertakings should implement appropriate
systems to monitor their Internal Control’s efficiency and
effectiveness. Monitoring should be carried out on an on-
going basis, complemented with separate evaluations.
As an integral part of an internal control system, and in
keeping with the diversity and complexity of the insurance
undertaking’s activity, there should be an effective and
comprehensive internal audit carried out by operationally
independent, appropriately trained and competent staff.
The internal audit function should be conducted through a
professional audit program designed to provide reasonable
assurance that Internal Control objectives are met. An
effective internal audit function should also comprise a
follow-up process on audit findings in order to assure that
they are being adequately dealt with adequately.
The Internal Control system should be monitored in
a continuous way in order to assure that, in the face
of internal and external circumstances, compliance
there with is maintained. Design of the Internal Control
system should include embedded monitoring of
operations and performances. Accounts ability for the
monitoring processes should be clearly identified and
stated.
Apart from being part of the daily activities of the
insurance undertakings, monitoring should also
include periodic evaluations of the overall internal
control system. Separate evaluations should help
obtain an all-round perspective of the situation of the
Reliance Insurance Limited
Annual Report 2022
Company thus providing the Board and Management
with important data for decision making.
Monitoring should include procedures to detect gaps
and problems. Further, these problems should be
registered and documented.
The internal audit function should have sufficient
authority to carry out its responsibility, objectively
and independently. To ensure appraisals are made
without bias or influence, the internal audit should
be independent of the day to day functioning of the
insurance undertaking.
Considering the importance of this function, the
internal audit should be staffed with competent,
qualified, well-trained and independent people who
should have a clear understanding of their role and
responsibilities.
The internal audit function should conduct follow-up
reviews in order to ensure that the necessary measures
to address the deficiencies have been taken.
NEED FOR INTERNAL CONTROLS:
From the insurance sector point of view, Internal Control
should be seen as an opportunity for the Company to
improve their performance, both from an internal and an
external perspective.
Internally, good Internal Control systems lead to
improved recognition, assumption and prevention of
risks, which is of prime importance in a sector with the
particularities of Insurance, which is about findings
business opportunities in risks. Also competitiveness
will be fostered by appropriate controls not only in
the short but also in the long term. Finally, it will help
reduce the impact of unexpected events, or even to
avoid them altogether, for example by means of good
early warnings or scenario testing.
Externally, appropriate Internal Control systems will
have a positive impact on policyholders, supervisors
and shareholders.
 Information
Stakeholders’
169

CORPORATE OBJECTIVES,
VALUES & STRUCTURE
170

Snapshot of Last
Annual General Meeting

Snapshots of
Corporate Events

CEO with Executives on Reliance Family Day.

Reliance Insurance Limited

Annual Report 2022
 171

Chief Consultant receiving prize from CEO. CEO with Non-Executives on Reliance Family Day.

CEO with Female Executives on Reliance Family Day. Goodwill visit of AON Broker team at Reliance Head Office.

RIL officers are giving training to farmers on Corp Insurance. ‘Bima Mela’ 2022.
STAKEHOLDERS’
INFORMATION

Celebrating of new year 2023. RIL officers on ‘Bima Dibos’ 2023.

172

Shareholding Composition
As on December 31, 2022

Sl. No. Name of Shareholders No. of Shares %

1 Sponsors/Directors:
General Produce International Ltd. 3,265,604 3.11
FinAccord Trading Limited 3,447,604 3.28
Trinco Limited 7,562,771 7.19
Rangs Limited 7,064,737 6.72
Transfin Trading Limited 7,562,573 7.19
Arlinks Limited 6,452,104 6.14
Kumudini Welfare Trust of Bengal (BD) Ltd. 6,868,227 6.53
Prantik Engineering Co. Limited 1,716,932 1.63
Mr. Shamsur Rahman(Self) 4,111,678 3.91
Deep Sea Fishers Limited 6,666,649 6.34
Transcom Limited 2,494,880 2.37
Rangs Workshop Ltd. 3,727,709 3.54
Transcom Electronics Limited 4,513,441 4.29
Kumudini Handicrafts 2,103,515 2.00
Sub-Total 67,558,424 64.24
2 General
Institutions/Employees:
Bank/ICB’s MF, Insurance Co’s 1,546,992 1.47
ICB Investors’ Accounts 188,050 0.18
Employees 23,008 0.02
Sub-Total 1,758,050 1.68
Individuals:
General Public 35,844,613 34.09
Sub-Total 35,844,613 34.09

Total Holdings 105,161,087 100.00

64.24%
34.08% Sponsors/ Directors
Individuals

1.68%
Institutions/ Employees

Reliance Insurance Limited

Annual Report 2022
 173

The History of
Rising Share Capital
Number of shares increase Cumulative
Value in Paid-up-
Particulars 1997- 2008- 2013- 2019-
1988 1995 1996 2003 2004 2005 2006 2007 2010 2011 2012 2016 2017 2018 Taka capital in
2002 2009 2015 2021 Taka
25% C - - 1,051,610,879
10% B & 15% C 9,560,099 95,600,989 1,051,610,879
10% B & 15% C 8,690,999 86,909,990 956,009,890
10% B & 15% C 7,900,908 79,009,080 869,099,900
15% B & 15% C 10,305,532 103,055,320 790,090,820
15% B & 15% C 8,961,332 89,613,320 687,035,500
15% B & 15% C 7,792,463 77,924,630 597,422,180
10% B & 15% C 4,722,705 47,227,050 519,497,550
15% B & 15% C 6,160,050 61,600,500 472,270,500
35% B 1,064,700 106,470,000 410,670,000
30% B 702,000 70,200,000 304,200,000
30% B 540,000 54,000,000 234,000,000
20% B 300,000 30,000,000 180,000,000
15% C - - 150,000,000
25% B & 10%C 300,000 30,000,000 150,000,000
33.33% B &
300,000 30,000,000 120,000,000
10%C
50% B & 10%C 300,000 30,000,000 90,000,000
30% C - - 60,000,000
20% C - - 60,000,000
IPO 300,000 30,000,000 60,000,000
As per MOA &
300,000 30,000,000 30,000,000
AOA

Financial Calendar
DEC MAR
NOV Mar 6, 2023 Mar 14, 2023
Record date Issuance of
OCT
Annual Report
Oct 27, 2022 SEP Mar 30, 2023 Mar 6, 2022
3rd Quarter 2022 AUG 35th Annual Record date
results publication
2022
JUL General Meeting

Jul 27, 2022 Mar 9, 2022 Mar 30, 2022

2nd Quarter 2022 JUN Issuance of 34th Annual
results publication Annual report General Meeting

MAY
May 11, 2022
APR
1st Quarter 2022 FEB
STAKEHOLDERS’
INFORMATION

results publication
Feb 12, 2023
May 25, 2022 Announcement
Cash dividend of JAN of Dividend of
2021 paid 2022
174

Our Position in the Market

PROFITABILITY
Insurance underwriting is critical but our bottom-line results shows something special about our efficiency by offering a great
and competitive rate abiding by insurance laws and regulations. By pricing risk effectively, we bring in more revenue in premiums
than it spends on conditional payouts. To generate further earnings, RIL invests a portion of that money in investment portfolio
and earn additional profits, which help improve the balance sheets and bottom line. However, in the last few years (Up to Year
2019), RIL holds top market position in non-life insurance category to the extent that profit earning is considered.

BDT in million
Name of the Company 2021 2020 2019 2018 2017 2016
Reliance Insurance Ltd. 882.68 770.47 849.76 694.43 630.47 494.66
Green Delta Insurance Co. Ltd. 1,256.00 1,016.58 360.6 318.89 307.8 303.53
Pioneer Insurance Co. Ltd. 840.87 750.40 440.17 332.62 309.62 258.6
Pragati Insurance Ltd. 524.20 365.37 281.19 236.62 210.33 186.27
United Insurance Co. Ltd. 120.10 122.93 124.87 117.77 127.4 146.49

Profitibality

1,256.00
1,016.58

750.40
694.43
309.62
630.47

840.87

524.20
882.68
849.76
236.62
332.62

365.37
770.47
440.17
210.33

318.89

122.93

120.10
124.87
281.19
360.6
307.8

117.77
127.4

2017 2018 2019 2020 2021

Reliance Insurance Ltd. Green Delta Insurance Co. Ltd. Pioneer Insurance Co. Ltd. Pragati Insurance Ltd. United Insurance Co. Ltd.

DIVIDEND

In comparing with all other non-life insurance companies in Bangladesh, Reliance has maintained a constant policy in terms
of giving dividend, either in stock or cash. Most of the companies pays stock dividend to shareholders that is made in shares
rather than in cash. And in some cases, it indicates the ability of the company to pay out the dividend in cash though the IRR/
reinvestment plan is not healthy at all. In recent years RIL paid a respectable percentage of dividend mixed with stock and cash
(25%-30%) and last two years (2020-2021) the Company announced cash dividend @ 25%.

BDT in million
Name of the Company 2021 2020 2019 2018 2017 2016
Reliance Insurance Ltd. 25 25 25 25 25 25
Green Delta Insurance Co. Ltd. 30 32 20 20 20 20
Pioneer Insurance Co. Ltd. 25 20 20 15 18 15
Pragati Insurance Co. Ltd. 35 12 22 20 18 15
United Insurance Co. Ltd. 10 11 11 13 11 11

Reliance Insurance Limited

Annual Report 2022
 175

Dividend

30
20

20

20

20

20

20

35
32
25

25

25

25

25

25
22

10
18

18

13
15

12
11

11

11
2017 2018 2019 2020 2021

Reliance Insurance Ltd. Green Delta Insurance Co. Ltd. Pioneer Insurance Co. Ltd. Pragati Insurance Ltd. United Insurance Co. Ltd.

EARNINGS PER SHARE

As far as EPS is concerned, Reliance displays an impressive position in the midst of all Bangladeshi non-life insurance companies.

BDT in million
Name of the Company 2021 2020 2019 2018 2017 2016
Reliance Insurance Ltd. 5.59 5.21 5.57 5.21 4.78 3.74
Green Delta Insurance Co. Ltd. 7.86 7.34 3.39 3.64 3.59 3.46
Pioneer Insurance Co. Ltd. 7.62 7.61 4.89 3.82 3.43 1.8
Pragati Insurance Ltd. 5.72 4.07 3.19 3.02 2.66 2.38
United Insurance Co. Ltd. 1.65 1.12 1.95 2.18 2.41 2.87

Earnings per share

4.89
3.64

3.02
3.43

3.39

4.07
3.59

2.66

5.59
3.82
4.78

7.86
7.34

7.62
5.57

5.72
3.19

1.95

1.65
2.41

2.18

7.61
5.21

5.21

1.12

2017 2018 2019 2020 2021

Reliance Insurance Ltd. Green Delta Insurance Co. Ltd. Pioneer Insurance Co. Ltd. Pragati Insurance Ltd. United Insurance Co. Ltd.
STAKEHOLDERS’
INFORMATION
176

Information about
Unclaimed Dividnd
As per Bangladesh Security Exchange Commission (BSEC) Directive No. BSEC/CMRRCD/2021-386/03, dated: January 14, 2021
and also BSEC, Capital Market Stabilization Fund Rules, 2021, Unclaimed Dividend of more than 3 (three) years from the date of
declaration or approval or record date should be transferred to Capital Market Stabilization Fund (CMSF). Relaince has already
transferred the uncalimed cash dividend of the period from 1995-2018 to CMSF, details are as follow-

Unclaimed Cash
Year Dividend paid to CMSF Payment Date
(amount in taka)

1995-2017 5,997,478.96 29.08.2021

2018 2,570,419.61 20.03.2022

Total 8,567,898.57

The summary of Unclaimed Cash Dividend for the period from 2019-2021 as on December 31, 2022 -

Unclaimed Cash Dividend as of December 31, 2022

Year
(amount in taka)

2019 808,662.90

2020 1,075,115.86

2021 1,484,723.97

Total 3,368,502.73

Reliance Insurance Limited

Annual Report 2022

Dividend
Distribution Policy
This policy will be applicable to Reliance Insurance Limited
“The Company”. This policy is for payment of dividend to
entitled shareholders/members of the company.
1. The company will pay the annual dividend to the
entitled shareholders, within 30 (thirty) days from the
date of Annual General Meeting.
a. Legal ground of this Dividend Distribution
Policy is the Directive from Bangladesh
Securities and Exchange Commission i.e. BSEC/
CMRRCD/2021-386/03 Date 14th January 2021.
b. Business and investment policy of the company
may need to be amended, revised, refined
and readjusted as and when necessary to
accommodate the changes in the regulatory
frameworks, government policy and other
requirements. Therefore, the company may
review this policy when deem necessary.
2. Cash dividend distributed in the following manner and
procedures, namely:
i. The company will pay cash dividend directly to
the bank account of the entitled shareholders, as
available in the BO (Beneficiary Owner) account
maintained with the depository participant (DP), or
the bank account as provided by the shareholder
in paper form, through Bangladesh Electronic
Funds Transfer Network (BEFTN), provided that
the company may pay off such cash dividend
through bank transfer or any electronic payment
system as recognized by the Bangladesh Bank, if
not possible to pay off through BEFTN;
ii. The company, upon receiving the claim on cash
dividend from a stock broker or a merchant banker
or a portfolio manager for the margin client or
customer who has debit balance or margin loan,
or as per intention of the client of stock broker
or merchant banker or portfolio manager, will
pay off such cash dividend to the Consolidated
Customers’ Bank Account (CCBA) of the stock
broker or to the separate bank account of the
merchant banker or portfolio manager through
BEFTN;
iii. The company, in case of non-availability of bank
account Information or not possible to distribute
cash dividend through BEFTN or any electronic
payment system, issue cash dividend warrant and
send it by post to the shareholder;
177
iv. The company will pay cash dividend to sponsor,
director, shareholder, or foreign portfolio investor
(FPI) through the security custodian in compliance
with the rules or regulations in this regard;
v. The company, immediately after disbursement
of cash dividend and issuance a certificate of tax
deducted at source, if applicable, will intimate to
the shareholder through a short message service
(SMS) to the mobile number or email address as
provided in the BO account or as provided by the
shareholder;
vi. The company will maintain detailed information
of unpaid or unclaimed dividend and rationale
thereof, as per BO account number wise or name-
wise or folio number-wise of the shareholder;
vii. The company transfers the unpaid, unclaimed or
undistributed dividend both cash and bonus to
the CMSF (Capital Market Stabilization Fund) as
per BSEC’s directive (s).
Provided that the company will publish the year-
wise summary of its unpaid or unclaimed dividend
in the website:
Provided further that any unpaid or unclaimed
cash dividend including accrued interest (after
adjustment of bank charge, if any) thereon, if
remains, shall be transferred to a separate bank
account of the company as maintained for this
purpose, within 1 (one) year from the date of
approval or record date, as the case may be.
3. The company will credit stock dividend directly to the
BO account or issue the bonus share certificate of the
entitled shareholder, as applicable, within 30 (thirty)
days of declaration or approval or record date, as the
case may be, subjects to clearance of the exchange(s)
and the Central Depository Bangladesh Limited
(CDBL);
4. The company submits a compliance report to the
Commission and the exchange(s) in a specific format,
within 7 (seven) working days of completion of
dividend distribution:
Provided that the company will publish the compliance
report in its website.
STAKEHOLDERS’
INFORMATION
5. The company will not forfeit any unclaimed cash
dividend or stock dividend till the claim becomes
barred by the law of land in force.
178
Redressal of Investors’ Complaints
Investors’ service is an important imperative for sustained
business growth and all companies want to ensure that their
investors receive exemplary service across different areas of
operations of the Company. Reliance Insurance Limited is
no exception of this and is always committed to maintaining
highest standard of conduct and professional behavior in
dealing with its shareholders.
Share Department officials are always ready to help
shareholders whenever in need of share related services
like share transfer, transmission, dividend warrant issue,
dividend warrant re-validation etc. Shareholders of the
company are also free to raise their claim, if any, throughout
the year. Shareholders get opportunity to speak on various
issues relating to the operation of the Company at the
Annual General Meeting which is held once a year, in which
the Chairman/Chief Executive Officer of the Company with
the help of CFO and Company Secretary respond to all
queries raised by the shareholders instantaneously.
Generally, shareholders raise issues relating to utilization
of Company’s resources, yearly and quarterly accounts,
business turnover and profitability, declaration of
entitlements, issuance of share certificates, share transfer
and transmission, changes of shareholders address, non-
receipt of Annual Report, date and time of AGM, minutes
of meetings of all AGM/EGM, implementation of decision
of the AGM & EGM and so on. It is the responsibility of the
Company Secretary to oversee that necessary actions are
taken expeditiously so that these issues are resolved to the
satisfaction of shareholders. And to do these RIL follows the
below principles:
Complaints raised by investors are dealt with courtesy
and on time.
Investors are treated fairly at all times.
Complete transparency is maintained with the
complainants.
Redressal of Clients’ Complaints
Insurance being a service industry, clients’ satisfaction
is of paramount importance in maintaining existing
clientele base and tapping new business, thereby to
achieve satisfactory business growth in the long run.
Being fully aware of this, Reliance always attends to its
clients complaints – whether related to its services or claim
settlement. Reliance encourages its clients to come forward
with any complaint they may have and the top management
is completely accessible to all of them. Complaints can be
Reliance Insurance Limited
Annual Report 2022
Complaints are treated efficiently and fairly;
To ensure all complaints are logged in defined manner
and system.
HOW DO RIL REDRESS INVESTORS’ COMPLAINTS
An Investor can make a written complaint through
letter.
The Company maintains investor grievance register in
which full detail of every written complaint shall enter
by the following details:
Name, address and contact number of the complainant
Date of receipt
Details of the complaint / subject / issue
Designated person shall look after the investor
grievances on daily basis.
The full detail of the written complaint must be
passed to the concerned department and inform the
compliance officer of the Company as soon as it is
received.
A letter or email must be written to all the investor who
has submitted written complaints by the designated
person or Compliance Officer acknowledging receipt of
the complaint and informing them it will be dealt with.
Internal Audit & Compliance Department will obtain
all information available on the complaint which is
considered necessary for a proper investigation, look
into all the necessary information and resolve these as
soon as possible.
RIL must resolve investor complaint within seven days
of the receipt of the same except the complicated
case.
A serious complaint must be referred to the CEO and
even to Directors of the Company if so warrants.
lodged with the management in writing, over telephone, by
e-mail or through the website. During regular meetings with
its clients of various types, the management actively solicits
the clients’ views on the Company’s services, shortcomings,
if any, and their suggestions. Clients views and complaints
are discussed at the management committee meeting
held at Head Office and also during meetings with Branch
Managers. This aspect also features prominently at the
Annual Conference of the Company.
 179

Graphical Presentation
Earning Per Share BDT Dividend Per Share (Cash) BDT

5.21 5.57 5.21 5.59 5.86 1.50 2.50 2.50 2.50 2.50

2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

Net Assets BDT in Million Stock performance

5,814.10 5,531.88 6,386.90 6,771.16 6,745.71

89.50
85.40
77.30
86.00 72.40
68.30 61.80
80.00 61.10 61.20 60.00 64.30
72.00 70.00 57.70 58.40
62.00 70.30
58.80 59.00 59.00 59.00 59.10 58.80

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2018 2019 2020 2021 2022 Stock Performance (DSE) Stock Performance (CSE)

Return on shareholders' fund (%) Shareholders' equity BDT in Million

17.38 20.72 15.32 15.26 16.59 5,814.10 5,531.88 6,386.90 6,771.16 6,745.71

2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

Property plant & equipments BDT in Million Current assets BDT in Million

1,913.34 1,911.14 1,882.32 1,862.95 1,845.28 3,797.50 4,559.56 4,838.10 5,140.31 5,880.54
STAKEHOLDERS’
INFORMATION

2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
180

Net Current assets BDT in Million Current liabilites BDT in Million

807.09 1,091.72 947.11 828.58 1,020.66 2,990.41 3,467.85 3,890.99 4,311.73 4,859.88

2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

Operating Performance
Gross Premium BDT in Million Underwriting profit BDT in Million

2,689.26 3,004.16 2,937.12 3,140.35 3,523.63 416.01 535.97 470.98 574.52 615.20

2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

Net profit before tax BDT in Million Net profit after tax BDT in Million

694.43 849.76 770.48 836.86 882.68 498.13 585.42 548.18 587.81 615.93

2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

Reliance Insurance Limited

Annual Report 2022
 181

Profitability, Dividends
Performance & Liquidity Ratios
Underwriting/Gross profit ratio Eanrings before Interest, Depreciation & Tax BDT in Million

52.91 64.15 72.52 52.84 48.28 662.03 889.26 812.04 876.64 921.93

2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

Price earnings ratio Claim ratio

8.75 7.81 11.89 15.65 9.97 15.78 13.25 19.85 20.73 15.52

2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

Return on capital employed (%) Market value per share BDT

20.39 25.18 19.18 19.31 20.69 45.60 43.50 62.00 87.50 58.40
STAKEHOLDERS’
INFORMATION

2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
182

Net assets value per share BDT Dividend in percentage (Stock)

60.82 52.60 60.73 64.39 64.15 10% 0% 0% 0% 0%

2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

Debt equity ratio Shareholders' fund BDT in Million

42.14 52.76 54.06 56.57 63.86 5,814.10 5,531.88 6,386.90 6,771.16 6,745.71

2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

Dividend Per Share (Cash) BDT Net operating cash flow per share BDT

1.50 2.50 2.50 2.50 2.50 3.52 4.66 6.50 7.96 6.60

2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

Surplus ratio Solvency ratio

162.62 121.34 112.18 138.65 124.84 4.43 6.30 10.62 9.03 8.08

2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

Reliance Insurance Limited

Annual Report 2022
 183

Horizontal Analysis
HORIZONTAL ANALYSIS
Statement of Financial Position (Balance Sheet) as at December 31 (for last six years)
2022 2021 2020 2019 2018 2017
Assets
Non-Current assets 115% 120% 110% 89% 101% 100%
Property, plant and equipments 130% 132% 133% 135% 135% 100%
Assets under construction 331% 299% 237% 215% 113% 100%
Investments 89% 98% 87% 58% 85% 100%
Current assets 180% 157% 148% 140% 116% 100%
Stock of stamps and others 57% 54% 60% 64% 69% 100%
Advances, deposits and prepayments 158% 133% 139% 136% 106% 100%
Premium control account 11% 44% 56% 88% 94% 100%
Interest receivable account 143% 114% 134% 176% 132% 100%
Amount due from other persons or bodies carrying on insurance
199% 185% 166% 146% 118% 100%
business
Cash and cash equivalents 196% 173% 155% 141% 122% 100%
Cash in hand 9% 5% 11% 15% 40% 100%
Cash at bank 474% 217% 168% 135% 204% 100%
Fixed deposit receipt (FDR) 186% 172% 155% 142% 119% 100%
Total assets 141% 135% 125% 109% 107% 100%
Shareholders' equity & liabilities
Shareholders' equity 120% 121% 114% 98% 104% 100%
Share capital 121% 121% 121% 121% 110% 100%
Reserves and surplus 120% 120% 112% 94% 102% 100%
Liabilities and provisions 186% 165% 149% 133% 114% 100%
Balance of funds and accounts 109% 95% 87% 108% 107% 100%
Premium deposit 412% 310% 221% 149% 113% 100%
Unclaimed dividend account 67% 89% 190% 310% 189% 100%
Estimated liability in respect of outstanding claims whether due or
141% 177% 171% 124% 124% 100%
intimated
Amounts due to other persons or bodies carrying on insurance
126% 165% 181% 133% 111% 100%
business
Outstanding refundable premium 15% 38% 54% 100% 101% 100%
Sundry creditors 207% 166% 151% 146% 111% 100%
Deferred tax liabilities 114% 134% 134% 112% 141% 100%
Total Shareholders' equity & liabilities 141% 135% 125% 109% 107% 100%

HORIZONTAL ANALYSIS
Statement of Comprehensive Income (Profit & Loss Account) for the year ended December 31 (for last six years)
2022 2021 2020 2019 2018 2017
Gross Premium 137% 122% 114% 117% 105% 100%
Reinsurance Premium ceded 168% 149% 140% 126% 103% 100%
Net Premium 103% 93% 86% 107% 106% 100%
Net R/I Commission Earned 152% 131% 123% 119% 97% 100%
Net Premium Reserve retained 255% 156% -400% 32% 121% 100%
Commission Paid 83% 51% 118% 120% 107% 100%
Management Expenses including Claims (Revenue A/C) 116% 109% 91% 119% 123% 100%
Net Incurred Claims 118% 142% 126% 105% 146% 100%
Management Expenses including Claims (Revenue A/C) 91% 79% 79% 97% 103% 100%
STAKEHOLDERS’

Underwriting/Gross Profit 162% 152% 124% 141% 110% 100%

INFORMATION

Investment Income & other income 99% 98% 116% 121% 107% 100%
Management Expenses (P & L A/C) 74% 77% 106% 110% 97% 100%
Pre-tax profit 140% 133% 122% 135% 110% 100%
Income tax expense 156% 145% 130% 154% 114% 100%
After-tax profit 134% 128% 119% 128% 109% 100%
Earnings per share 123% 117% 109% 117% 99% 100%
184

Vertical Analysis
VERTICAL ANALYSIS
Statement of Financial Position (Balance Sheet) as at December 31 (for last six years)
2022 2021 2020 2019 2018 2017
Assets
Non-Current assets 49.33% 53.62% 52.93% 49.34% 56.87% 60.32%
Property, plant and equipments 15.90% 16.81% 18.31% 21.24% 21.73% 17.19%
Assets under construction 8.65% 8.18% 6.99% 7.25% 3.89% 3.68%
Investments 24.78% 28.63% 27.62% 20.85% 31.25% 39.44%
Current assets 50.67% 46.38% 47.07% 50.66% 43.13% 39.68%
Stock of stamps and others 0.05% 0.05% 0.06% 0.07% 0.08% 0.12%
Advances, deposits and prepayments 14.54% 12.77% 14.36% 16.07% 12.78% 12.94%
Premium control account 0.03% 0.14% 0.20% 0.35% 0.38% 0.43%
Interest receivable account 0.81% 0.68% 0.86% 1.29% 0.99% 0.80%
Amount due from other persons or bodies carrying on insurance
1.35% 1.31% 1.27% 1.28% 1.05% 0.95%
business
Cash and cash equivalents 33.89% 31.43% 30.32% 31.61% 27.85% 24.43%
Cash in hand 0.00% 0.00% 0.00% 0.00% 0.01% 0.02%
Cash at bank 2.73% 1.31% 1.09% 1.00% 1.55% 0.81%
Fixed deposit receipt (FDR) 31.16% 30.12% 29.23% 30.61% 26.29% 23.60%
Total assets 100% 100% 100% 100% 100% 100%
Shareholders' equity & liabilities
Shareholders' equity 58.12% 61.10% 62.14% 61.47% 66.04% 68.24%
Share capital 9.06% 9.49% 10.23% 11.68% 10.86% 10.56%
Reserves and surplus 49.06% 51.61% 51.91% 49.78% 55.18% 57.68%
Liabilities and provisions 41.88% 38.90% 37.86% 38.53% 33.96% 31.76%
Balance of funds and accounts 4.76% 4.35% 4.27% 6.10% 6.14% 6.16%
Premium deposit 9.55% 7.53% 5.77% 4.44% 3.45% 3.27%
Unclaimed dividend account 0.03% 0.04% 0.09% 0.17% 0.11% 0.06%
Estimated liability in respect of outstanding claims whether due or
3.31% 4.33% 4.52% 3.74% 3.83% 3.30%
intimated
Amounts due to other persons or bodies carrying on insurance
2.66% 3.65% 4.32% 3.63% 3.09% 2.98%
business
Outstanding refundable premium 0.00% 0.01% 0.02% 0.04% 0.04% 0.04%
Sundry creditors 19.28% 16.17% 15.81% 17.51% 13.56% 13.10%
Deferred tax liabilities 2.30% 2.83% 3.06% 2.90% 3.75% 2.85%
Total Shareholders' equity & liabilities 100% 100% 100% 100% 100% 100%

VERTICAL ANALYSIS
Statement of Comprehensive Income (Profit & Loss Account) for the year ended December 31 (for last six years)
2022 2021 2020 2019 2018 2017
Gross Premium 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Reinsurance Premium ceded 71.63% 63.42% 63.82% 55.90% 51.20% 51.89%
Net Premium 40.58% 36.58% 36.18% 44.10% 48.80% 48.11%
Net R/I Commission Earned 10.11% 8.71% 8.76% 8.25% 7.56% 8.12%
Net Premium Reserve retained 2.25% 1.37% 3.77% 0.30% 1.14% 4.08%
Commission Paid 9.71% 5.93% 14.72% 14.93% 13.38% 12.87%
Management Expenses (Revenue A/C) 12.84% 12.11% 10.77% 14.08% 14.56% 12.35%
Net Incurred Claims 6.30% 7.58% 7.18% 5.98% 8.36% 7.05%
Management Expenses including Claims (Revenue A/C) 31.10% 27.00% 28.90% 34.50% 40.90% 41.50%
Underwriting/Gross Profit 19.59% 18.29% 16.04% 17.84% 15.47% 14.73%
Investment Income & other income 10.25% 10.16% 12.86% 13.15% 13.01% 12.65%
Management Expenses (P & L A/C) 1.74% 1.80% 2.66% 2.71% 2.65% 2.87%
Pre-tax profit 28.11% 26.65% 26.23% 28.29% 25.82% 24.51%
Income tax expense 8.49% 7.93% 7.57% 8.80% 7.30% 6.67%
After-tax profit 19.61% 18.72% 18.66% 19.49% 18.52% 17.84%
Earnings per share 0.20% 0.19% 0.18% 0.19% 0.18% 0.19%

Reliance Insurance Limited

Annual Report 2022
 185

Financial Ratios
Particulars Terms 2022 2021 2020 2019 2018 2017

Profitibality ratios

ROA % 5.31 5.30 5.33 6.50 5.66 5.55

ROE % 16.59 15.26 15.32 20.72 17.38 18.28

Gross profit ratio/Underwriting Ratio 17.46 18.29 16.04 17.84 15.47 14.73

Net profit ratio Ratio 17.48 18.72 18.66 19.49 18.52 17.75

Earnings per share Taka 5.86 5.59 5.21 5.57 4.74 4.78

Profit before interest, depreciation & tax (EBIDT) Taka 921.93 876.64 812.04 889.26 662.03 661.15

Return on capital employed % 20.69 19.31 19.18 25.18 18.28 20.80

Liquidity ratios

Current ratio Ratio 1.21:1 1.19:1 1.24:1 1.31:1 1.25:1 1.25:1

Quick Ratio Ratio 1.21:1 1.19:1 1.24:1 1.31:1 1.25:1 1.25:1

Market Ratios

Dividend yield Ratio 4.28 2.86 4.03 5.75 5.48 4.57

PE ratio Ratio 9.97 15.65 11.89 7.81 8.75 11.45

Earnings per share Taka 5.86 5.59 5.21 5.57 4.74 4.78

Dividend payout ratio Ratio 42.68 44.73 47.96 44.88 47.98 52.35

Leverage ratios

Debt equity ratio % 63.86 56.57 54.06 52.76 42.14 39.34

Debt ratio Ratio 41.88 38.90 37.86 38.53 33.96 32.65

Interest coverage ratio Ratio N/A N/A N/A N/A N/A N/A
STAKEHOLDERS’
INFORMATION
186

35 Years of Journey (1988-2022)

Growth Factors Since Inception

Gross premium & Net premium BDT in Million

3500 3,252.63

3000

2500

2000

1500 1274.24

1000

500

0
Year 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020

Gross premium Net premium

Underwriting profit & Net profit ater tax BDT in Million

700
615.20
600
615.93
500

400

300

200

100

0
Year 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020
-100
Underwriting profit Net profit ater tax

Total Asset & Net Asset BDT in Million

14000

12000

10000 11,605.59

8000
6,745.71
6000

4000

2000

0
Year 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020

Total Asset Net Asset

Reliance Insurance Limited

Annual Report 2022
 187

Statement of Value Added

and its Distribution

STATEMENT OF VALUE ADDED

AND ITS DISTRIBUTION
188

Value Added Statement

For the year ended December 31, 2022

2022 2021
PARTICULARS
Taka (in Million) Taka (in Million)
VALUE ADDED
Gross Premium 3,523.63 3,140.34
VAT & Stamp Duty 518.50 539.04
Investment & Other Income 321.97 318.96
Net Claims Incurred (197.80) (238.19)
Net Reinsurance Cost (1,931.78) (1,714.02)
Management Expenses (477.75) (384.06)
Unexpired risk (70.69) (43.10)
TOTAL VALUE ADDED 1,686.08 1,618.97

APPROPRIATION / DISTRIBUTION OF VALUE ADDITION

2022 2021
PARTICULARS % %
Taka (in Million) Taka (in Million)
To Government
VAT & Stamp Duty 518.50 30% 539.03 33%
Tax 266.75 16% 249.05 15%

To Employees
as remuneration 284.91 17% 239.07 15%

To Shareholders
as dividends 262.90 16% 262.90 16%

Retained in business
Retained Earnings 125.60 7% 114.03 7%
General Reserve 100.00 6% 100.00 6%
Reserve for exceptional lossees 127.42 8% 114.89 7%
353.02 328.92

TOTAL DISTRIBUTION 1,686.08 100% 1,618.97 100%

2022 2021

46% 49%
21% To Government 20% To Government
Retained in Retained in
Business Business

16% 16%
To To
Shareholders Shareholders

17% 15%
To Employees To Employees

Reliance Insurance Limited

Annual Report 2022
 189

Economic Value Added

Economic Value Added (EVA) is the financial performance
measure that attempts to measure the true economic
profit of an organization. It provides a measurement of a
company’s economic achievement (success or failure) over
a period of time. Such a metric is useful for investors who
wish to determine how well a company has added value
for its investors and it can be compared against company’s
peers for a quick analysis of how well the company is
operating in its industry. Companies which earn higher
returns than cost of capital create value, and companies
which earn lower returns than cost of capital are deemed
harmful for shareholder value. Economic value added is
calculated by taking a company’s net profit after tax less
cost of capital.

(Tk. in million)

Particulars 2022 2021 2020 2019 2018 2017

*Average shareholders’ equity at the end 4,284.90 3,930.44 3,601.53 3,312.03 3,588.41 2,450.52
**Cost of equity (%) 6.99 5.22 5.22 10.22 11.35 11.35

Economic Value Added 316.42 382.64 360.18 246.93 90.85 180.82

Net profit after tax 615.93 587.81 548.18 585.42 498.13 458.96
Less: Cost of equity 299.51 205.17 188.00 338.49 407.29 278.13

*Land revaluation reserve and fair value adjustment of shares were not considered while computing average shareholders’ equity.
**It is the opportunity cost i.e. the expected risk free return on investments, plus a risk premium. Interest on Bangladesh Government Sanchaya
Patra plus 2% risk premium has been assumed to be the cost of equity.

Market Value Added Statement

FOR THE YEAR ENDED DECEMBER 31, 2022
Market Value Added (MVA) is the difference between the
total market value (based on the quoted price in the main
bourse) and total book value of the Company’s shares.
The higher the MVA, better the Company’s position. A
high MVA indicates the Company has created substantial
wealth for the shareholders. A negative MVA means that
the value of management’s action and investments are less
than that value of the capital contributed to the Company
by the capital market (or that wealth and value have been
destroyed).
As of December 31, 2022, the total share market value of
Reliance Insurance Limited stood at Taka 6,141.41 million
whereas the book value of the Shareholder’s Equity stood
6,745.71 million, resulting a Market Value Added of Taka
(604.30) million. The calculation of Market Value is given
below:

Value Total
Numbers Per Value
Particulars (604.30)
of Shares Share (Taka in Market Value
(Taka) Million) Added

Market Value 105,161,087 58.40 6,141.41

Book Value 105,161,087 64.15 6,745.71

STATEMENT OF VALUE ADDED

6,745.71
Book Value
AND ITS DISTRIBUTION

Market Value Added (604.30)

190

Bangladesh Non-Life Insurance

Market Composition &
Reliance Share
Bangladesh non-life insurance Premium in 2021 was Taka The non-life market in Bangladesh is comprised of 46
42,497 million. Last 7 year’s Premium growth and penetration insurance companies including one state enterprise. The
rate (Non-life insurance premium as % of GDP) is shown in Premium income of top 8 Non-life Insurance companies in
the chart below: 2021 and their respective market shares are shown below.

Bangladesh Non-Life Insurance Market Premium Top 8 Non-Life Insurers Premium Income in 2021 BDT in Million
& Insurance Penetration 913.93
42,497 Islami
0.18 1,002.77
Northern
0.17 3,843.31
0.16 37,338 1,010.51 Green Delta
37,374
0.15 Eastland
33,908 1,056.21
0.13 Provati

29,862 0.13 0.12 0.12

27,627 2,506.52 3,140.35
26,387 Pragati Reliance
24,471

2014 2015 2016 2017 2018 2019 2020 2021

2,868.74
Premium (Taka Million) Insurance Penetration % Pioneer

It may be observed that no single insurer has a large market

share. The top 8 private sector insurers collectively account
The Market growth rates have been as follows: for a market share of 38.46%.

Non-Life Premium Development in Bangladesh Top 8 Non-Life Companies Market Share In % In 2021
13.8 42,497 2.47%
37,338 Islami
2.36%
29,862 Northern
26,214 37,374 13.7
33,908 9.04%
22,947
27,627 2.38% Green Delta
24,471 7.9 9.4 Eastland

6.0 7.7 2.49%

Provati
6.5
4.7 5.90% 7.39%
Pragati Reliance
0.9
2013 2014 2015 2016 2017 2018 2019 2020 2021
6.75%
Premium (Taka Million) Growth % Pioneer

Reliance Insurance Limited

Annual Report 2022
 191

Specific Areas
for Insurance Sector

SPECIFIC AREAS FOR

INSURANCE SECTOR
192
Claims Management and Details
of Outstanding Claims (IBNR &
IBNER) with Ageing Thereof
To the insuring public, the
standing of a responsible
and efficient insurer is
judged to a great extent
on how good its Claim
management is and what
is its track record in this
regard. It is one of the
very basic and most crucial
functions of an insurance
company. Achieving
excellence in claims
handling provides the vital
competitive edge for an
insurance company and it
is a service to which clients
greatly look forward.
Reliance Insurance Limited
Annual Report 2022
The prevailing pandemic situation
due to outbreak of COVID-19, has
led to economic slump in many
areas particularly in the industry and
service sectors, which ultimately
is posing a great challenge to the
investors. Export-oriented industries,
shipping, aviation, tourism linked
hotels/resorts, international trading,
and such other businesses are facing
serious financial threats. Under the
circumstances, abnormal claims are
likely to arise, for instance, claims due
to loss of / damage to cargo under
detention period at different ports,
factories operating as silent risk (i.e.,
not in operation) having huge stock
of raw materials/finished goods lying
idle at their warehouse exposed to
risk of fire generating high volume
claims, business interruption claims
due to lockdown for COVID-19, or
even general average claims arising
at overseas sea-ports amid the
COVID-19 lockdown, etc. Claims of
such nature obviously are posing new
challenges to claim management.
An insurance Company’s Claims
Management comprises of services
and/or advisory support in respect of
claims for compensation, restitution,
repayment or any other remedy for
loss or damage.
The basis of insurance is risk pooling,
which carries the obligation of paying
losses. A client obtains an insurance
policy by paying a price (termed as
premium) reposing the trust on the
insurer that upon occurrence of any
incident caused by named perils,
the financial losses to the subject
matter of insurance, so arisen thereto,
would be indemnified by the insurer.
Thus, by entering into any insurance
contract, the client has the following
expectations from the insurer:
a) Adequate insurance coverage,
which does not leave one high
and dry in time of need with
appropriate pricing.
b) Timely delivery of defect-free
policy documents with relevant
guidelines endorsements /
warranties / conditions as
applicable.
c) Should a claim happen, quick
settlement of the claim to the
insured satisfaction.
Hence, payment of legitimate
insurance claims for losses that the
insured have reasonably suffered
is the primary reason for buying
insurance.
Reliance Insurance has its corporate
philosophy on claims management
setting out broad approaches aimed
at providing high quality service and
expeditious settlement of claims. It
specifies the nature of claims service
and also the IT enabled interactive
process to monitor the status of the
claim.
Reliance Insurance prefers to manage
the claims rather than merely
handling them. The claim handling
process starts with notification of
loss to Reliance Insurance and the
company upon registering the claim,
appoints a licensed loss adjuster firm
immediately upon receipt of the loss
intimation. In order to ensure speedy
disposal of claims, the insured and/
or their agent are always requested
to submit all available supporting
documents without delay.
A checklist of minimum requisite
documents/papers in support of the
claims arising under each class of
business is maintained at the Head
Office. Reliance Insurance undertakes
all necessary steps expeditiously in
an orderly sequence: contact the

insured, arrange to inspect the loss through a loss adjuster,
ascertain quantum of loss and company’s liability, etc.
Reliance Insurance also suggests their clients the preventive
measures to be adopted to avert/minimize the loss and to
take steps to protect the salvage. Internally, the Reinsurance
Department is also informed of the loss, for processing
recovery from Reinsurers, where applicable.
As soon as Reliance Insurance receives all necessary
papers along with survey report from the loss adjuster, it
quickly scrutinizes all documents against the checklist of
requirements, verifies the loss adjustment made by the
surveyor and if in order, proceeds with the settlement of
claim without any delay. In addition to claims which are
settled during the accounting period, adequate provision
for outstanding claims, if any, are also made against
unsettled claims.
In recognition to its claims services, Reliance Insurance has
been awarded a Credit Rating of AAA in claims pay-ability by
the Credit Rating Information and Services Limited (CRISL).
Outstanding Claims (IBNR and IBNER) with ageing
thereof
Apart from claims which are settled during an accounting
period, outstanding liabilities against insurance claims
may exist or arise in respect of claims which have been
incurred but not enough/adequately reported (IBNER), or
those claims which have been incurred but not yet reported
(IBNR).
In general, there might be delay in settlement of the
claims on the part of the insurer, the typical reasons of
which are: (i) delay in reporting (time gap between claim
occurrence and claim reporting by the insured at the
insurance company); and (ii) delay in settlement due to the
complicated nature of claim or claim of big volume which
usually takes time to evaluate as to the cause of loss and
the quantum as appropriate. The time gap between claims
occurrence and claims closing (final settlement) may take
days (for instance, in case of vehicle / property insurances),
but it may also take even years (typically, in case of liability
insurances involving court proceedings to ascertain the
indemnity). Claims arising due to Business interruption or
Loss of Profit in Property insurance and Marine Cargo/Hull
Claims arising due to declaration of General Average (GA)
also take longer time to assess and usually come up for
settlement after a gap of months or even year from the
occurrence of loss.
Adequate provisions are created by setting aside a portion of
net premium earnings so that the insurer is able to settle all
the outstanding claim liabilities that are proximately caused
by perils falling within the scope of insurance contracts.
The following formula is usually applied to calculate the
provision for such outstanding claims:
Total IBNR = “Pure IBNR” + “IBNER”
For the sake of proper accounting practice, reserve for each
outstanding claim is maintained in respect of the financial
years. Reserve for claims incurred but not reported (IBNR)
193
and Reserve for claims incurred but not enough reported
(IBNER) are the two terms that can be regarded as carrying
similar meaning and are usually grouped together.
In some types of functionalities, especially in reinsurance
and in the London market, IBNR provisions include any
IBNER provisions. Sometimes, the provision for claims
incurred on or before the valuation date is referred to as the
True IBNR or the pure IBNR.
The liability for outstanding claims in the Balance Sheet of
a non-life insurance company includes a provision for both
IBNR and IBNER. Technically, there is a practice of creating
reserve against future liability arising out of claims which
have occurred but have not yet been settled.
INCURRED BUT NOT REPORTED (IBNR) LOSSES
RESERVE
The estimation of incurred but not reported (“IBNR”) claims
is generally subject to a greater degree of uncertainty
than the estimates of claims already notified, where
more information is available. IBNR claims may often not
be apparent to the Company until many years after the
occurrence of the event which gave rise to the claim.
IBNR refers to the losses that are not filed with the insurer
or re-insurer until years after the insurance policy is sold.
It is a reserve to provide for claims in respect of claim
events that have occurred before the accounting date
but have still to be reported to the insurer by that date. In
case of a re-insurer, the reserve needs also to provide for
claims that, although known to the cedant, have not yet
been reported to the re-insurer as being liable to involve
the re-insurer. The classical example of such delayed
claims relate to personal injury and/or liability arising from
asbestos related diseases.
IBNR reflects the total amount owed by the insurer to all
valid claimants who have had a covered loss but have
not yet reported it. Since the insurer knows neither how
many of these losses (the frequency) have occurred, nor
the severity of each loss, IBNR is necessarily an estimate.
Insurers track IBNR by policy periods (when incepted),
along with other categorizations. Statistical analysis
is made using Claims Development relating to each
Policy (UW) year which traces the claims development
pattern over a period of time until all claims relating to a
relevant Policy year are completely extinguished through
settlement. The characteristics of IBNR makes it look more
like a reserve or provision for the particular types of losses
not reported.
SPECIFIC AREAS FOR
INSURANCE SECTOR
The IBNR provisions are estimates using a range of statistical
methods. Such method extrapolates the development of
paid and incurred claims for each accident year based upon
the observed development of earlier years and expected
loss ratios. The main methods used in estimating IBNR are:
(a) Chain Ladder method (CL) based on paid and incurred
claims (b) Expected Loss Ratio method (ELR).
194

INCURRED BUT NOT ENOUGH REPORTED (IBNER)
LOSS RESERVE
IBNER refers to a reserve reflecting expected changes
(increases and decreases) in estimates for reported claims
only. The abbreviation is sometimes stated as applying to
“incurred but not enough reserved”.
Some liability claims may be filed long after the event that
caused the injury/financial loss to occur. Asbestos-related
diseases, for instance, do not show up until decades after
the exposure. Directors’ & Officers’ Liability claims may also
arise long after expiry of the policy period if they found
liable for compensation upon court order. General Average
claims in case of marine cargo and/or hull losses may be
assessed long after occurrence of the incident. Reserve for
such outstanding claims also has to be created adequately
against IBNER losses. IBNER also refers to estimates made
about claims already reported but where the full extent of
injury is not yet known, such as, workmen’s compensation
claims where the degree to which work-related injuries
prevents a worker from earning what he or she earned
before the injury that unfolds over time. Reliance Insurance
prefers to adjust reserves for such losses regularly as and
when such new information becomes available.
In particular reference to Bangladesh Insurance market,
delayed reporting in certain classes of insurance, as
mentioned above, are very few. Liability classes of insurance
Policies sold are limited. Business Interruption and General
average under Marine insurance could possibly give rise to
cases of delayed settlement of claims; but such claims only
arise very occasionally.
As per the existing directives of our local insurance
regulatory body, i.e., IDRA (Insurance Development and
Regulatory Authority) of Bangladesh, quarterly reporting
of all outstanding claims with aging thereof including their
specific reasons for delay in settlement of such respective
outstanding claims is mandatory.
Reliance Insurance maintains an adequate provision against
each of such outstanding claims with respective aging
thereof.
Under the current Insurance Laws of Bangladesh, it is not
yet obligatory to provide reserves for IBNR and/or IBNER
claims. However, in accordance with the solvency margin
regulations proposed under Insurance Act 2010, such
reserves would require to be maintained in the manner to
be prescribed by the relevant Rules.

HIGHLIGHTS OF SEGMENT REVENUE ACCOUNT

MARINE MISCELLANEOUS
FIRE TOTAL
CARGO HULL MOTOR MISC.
Gross Premium 1,937.45 702.01 253.25 138.61 492.31 3,523.63
Net Premium 450.26 461.54 71.01 135.24 156.19 1,274.24
R/I Commission earned 165.40 75.33 40.44 - 36.45 317.62
Management expenese 221.67 79.97 28.85 16.55 56.25 403.30
Agency Commission 137.46 112.50 16.61 19.87 18.43 304.87
Unexpired risk reserve 17.69 15.08 34.23 -5.38 9.06 70.69
Claim expenese 64.95 57.16 22.53 26.21 26.95 197.80
Underwriting Profit 173.90 272.16 9.22 77.98 81.95 615.20

ESTIMATED LIABILITY IN RESPECT OF OUTSTANDING CLAIMS

MARINE MISCELLANEOUS
FIRE TOTAL
CARGO HULL MOTOR MISC.
Estimated liability In respect of
135.31 160.06 14.97 28.43 45.00 383.77
outstanding claims

OUTSTANDING PREMIUM/ UNEARNED PREMIUM

The policies or cover notes issued against Bank Guarantee on the closing date of the accounting period becomes outstanding
and this is presented in the Statement of Financial Position (Balance Sheet) under note no. 16 Advance, deposits and
prepayments with a sub head of Collection control.

NET CLAIMS UNDER DIFFERENT CATEGORIES OF POLICIES

MARINE MISCELLANEOUS
FIRE TOTAL
CARGO HULL MOTOR MISC.
Net claims under different categories
64.95 57.16 22.53 26.21 26.95 197.80
of policies

Reliance Insurance Limited

Annual Report 2022
 195

DISCLOSURES OF RE-INSURANCE CEDED PREMIUM & CLAIM RECOVERED

MARINE MISCELLANEOUS
FIRE TOTAL
CARGO HULL MOTOR MISC.
Re-insurance ceded premium 1,487.19 240.47 182.24 3.37 336.12 2,249.39
Claim recovered 663.13 46.06 10.35 - 0.66 720.20

DISCLOSURES OF UNEXPIRED RISK / BALANCE OF FUND

Unexpired risk is the risk the period of which has not been expired during the accounting period of an insurer starting from
1 January to 31 December of a Gregorian calendar year. When a policy issued on January 1 of a year only that risk is expired
on December 31 of that year. But the policy which is issued on January 2 the risk remains unexpired on December 31 for 1
day of the next year. Therefore, the risks of around 50% policies remained unexpired during a financial year of an insurer.
However, there are specific regulations in the “Insurance (Investment and maintenance of Non-life insurers) Regulations 2019.
According to which necessary reserve funds are provided for in the concerned classes of Revenue Accounts @40% for all
classes of retained premium other than marine hull whereas @100% for marine hull retained premium. This unexpired reserve
is accounted for and presented at the Statement of Financial Position (Balance Sheet) as Balance of Fund under note no. 5.

MARINE MISCELLANEOUS
FIRE TOTAL
CARGO HULL MOTOR MISC.
Unexpired risk / Balance of Fund 180.10 184.62 71.01 54.10 62.48 552.30

CAPITAL ADEQUACY
Adequcy of capital and shareholders equity its growth is shown below -

Year 2022 2021 2020 2019 2018 2017

Shareholders Equity (BDT mn) 6,745.71 6,771.16 6,386.90 5,531.88 5,814.10 5,543.14
Growth -0.38% 6.02% 15.46% -4.85% 4.89% 31.15%

RESERVE ADEQUACY
Adequcy of reserve its growth is shown below -

Year 2022 2021 2020 2019 2018 2017

Total Reserve 6,246.40 6,201.15 5,773.81 5,029.50 5,456.65 5,254.46
Growth 0.73% 7.40% 14.80% -7.83% 3.85% 31.16%

SPECIFIC AREAS FOR

INSURANCE SECTOR
196

Disclosures Pertaining
to Solvency Margin
AVAILABLE, REQUIRED SOLVENCY MARGIN AND SOLVENCY RATIO
Available solvency margin of Reliance Insurance Limited is BDT 5,670.04 million against Required solvency margin NDT 701.91
million and Solvency ratio is 8.08 times.

As per available IDRA draft Non-life Insurance Sovency Margin provisions, 2022 required solvency margin, available solvency
margin and solvency ratio is shown below:

Amount in BDT mn
1. Assets after adjustment
Total Assets 11,605.59
Less:
Furniture, fixture & stationary 15.03
Others 268.43
283.47
Total 11,322.12
2. Liabilities after adjustment
Estimated liability for claims 383.77
Reserve for unexpired risk 552.30
Reserve for exceptional loss 1,645.91
Others 3,070.10
Total 5,652.08
3. Solvency margin available in BDT mn (1-2) 5,670.04
4. Solvency margin required in BDT mn (higher of RSM-1 or RSM-2) 701.91
5. Solvency ratio (3/4) (times) 8.08

A. REQUIRED SOLVENCY MARGIN BASED ON PREMIUM (RSM-1)

GP after
Class of Net 40% of 25% of RSM-1 (GPF & NP
Sl. Gross Premium Factor application
Business Premium NP GPF which is higher)
of factor
1 Fire 1,937.45 450.26 0.70 1,356.21 180.10 339.05 339.05
2 Merine Cargo 702.01 461.54 0.60 421.21 184.62 105.30 184.62
3 Marine Hull 253.25 71.01 0.60 151.95 28.40 37.99 37.99
4 Motor 138.61 135.24 0.75 103.96 54.10 25.99 54.10
5 Misc. 492.31 156.19 0.70 344.61 62.48 86.15 86.15
Total 3,523.63 1,274.24 2,377.94 509.69 594.49 701.91

B. REQUIRED SOLVENCY MARGIN BASED ON CLAIM (RSM-2)

GC after
Class of Net 50% of 35% of RSM-2 (GCF & NC
Sl. Gross Claim Factor application
Business Claim NC GCF which is higher)
of factor
1 Fire 861.54 64.95 0.80 689.23 32.48 241.23 241.23
2 Merine Cargo 65.18 57.16 0.70 45.63 28.58 15.97 28.58
3 Marine Hull 50.52 22.53 0.70 35.36 11.27 12.38 12.38
4 Motor 26.21 26.21 0.85 22.28 13.11 7.80 13.11
5 Misc. (72.90) 26.95 0.80 (58.32) 13.47 (20.41) 13.47
Total 930.55 197.80 734.18 98.90 256.96 308.77

Reliance Insurance Limited

Annual Report 2022
 197

Ratios Pertaining
to the Insurance Sector
Particulars 2022 2021 2020 2019 2018 2017

PROFITABILITY & MANAGEMENT EFFICIENCY

R/I premium ceded as % of gross premium 63.84 63.42 63.82 55.90 51.20 51.89

R/I premium ceded as % of Net premium 176.53 173.34 176.43 126.78 104.90 107.87

Agency Commission as % of Gross Premium 8.65 5.93 14.72 14.60 14.61 14.70

Net R/I Commission Earned as % of Gross Premium 9.01 8.71 8.76 8.25 7.56 8.12

Net R/I Commission Earned as % of Net Premium 24.93 23.80 24.22 18.71 15.50 16.89

Management Expenses (Revenue A/C) as % of Gross Premium 11.45 11.08 10.77 13.77 15.91 14.10

Management Expenses (Revenue A/C) as % of Net Premium 31.65 30.27 29.77 31.22 32.59 29.30

Combined ratio as % on Gross Premium 25.71 24.59 32.67 34.21 39.65 36.84

Combined ratio as % on Net Premium 71.10 67.21 90.31 77.58 81.24 76.59

Net Claims Incurred as % of Gross Premium 5.61 7.58 7.18 5.84 9.13 8.05

Net Claims Incurred as % of Net Premium 15.52 20.73 19.85 13.25 18.71 16.74

Underwriting Result as % of Gross Premium 17.46 18.29 16.04 17.84 15.47 14.73

Underwriting Result as % of Net Premium 48.28 50.01 44.33 40.46 31.70 30.61

Available solvency margin (BDT Million) 5,670.04 5,712.90 6,333.77 4,158.84 4,506.94 4,457.71

Premium growth ratio 12.21 6.92 (2.23) 11.71 4.53 3.45

Claim settlement ratio 44.53 48.20 38.20 36.17 55.63 46.53

Persistancy ratio 91 95 93 96 94 95

Reinsurance claim recovery percentage 70.99 81.74 51.42 43.74 52.90 53.50

PERFORMANCE WITH RESPECT TO SHAREHOLDERS

External Liability Ratio N/A N/A N/A N/A N/A N/A

Internal Capital Generation Ratio 20.55 18.56 17.89 17.34 12.75 11.00

Exceptional Loss Reserve to Net Premium 129.17 132.17 132.10 97.94 88.75 83.52

Capital & Fund to total Assets 58.12 61.10 62.14 61.47 66.04 67.35

Retention Ratio 36.16 36.58 36.18 44.10 48.80 48.11

Premium to Equity 52.24 46.38 45.99 54.31 46.25 46.41

Underwriting Result on Net Premium 48.28 50.01 44.33 40.46 31.70 30.61

Net Profit Margin on Net Premium 48.34 51.16 51.59 44.19 35.49 36.89

Return on Average Assets (ROAA) 5.18 5.50 5.75 5.85 6.19 5.55

Return on Average Equity (ROAE) 8.70 8.93 8.99 8.72 9.16 8.35
SPECIFIC AREAS FOR
INSURANCE SECTOR

Net Asset Value (NAV) Growth (0.38) 6.02 15.46 (4.85) 4.89 31.15

Capital appreciation - - - 10.00 10.00 10.00

Liquid Asset to Total Insurance Fund 3.15 3.40 3.29 2.61 3.13 3.47

Total Liquid Asset to Total Asset 59.66 61.37 58.99 53.50 60.63 64.92
198

Review of Assets Quality

Reliance insurance Limited always focuses on the superior
assets quality so that these will bring highest value to the
Company , ensure satisfactory return to the stakeholders
and ensure sustainable development. To perform the said
objectives, company has the policy to review of its assets
periodically and as a result of continuous monitoring and
development of the assets quality, Company achieved the
hefty growth for the past years. Following figures showing
five years growth of the assets may demonstrate how the
Company maintains its assets quality to increase value to
the Company.
Reliance ensures high degree of liquidity of its assets -
more than 70% of its assets comprise of cash and quickly
disposable shares and securities. Its share investment
portfolio comprise of investments into companies with
strong fundamentals. Though adverse situation of stock
markets in Bangladesh during the year 2021-2022, still
Reliance could earned steady investment income, which
bear testimony to the prudent investment policies followed
by the Company.

POSITION OF TOTAL ASSETS

Cash, Fixed
Property, plant &
Year Investments Deposit and bank Other assets Total
equipments
Balances
2017 1,415.10 3,246.26 2,010.91 1,558.48 8,230.75
2018 1,913.34 2,751.27 2,451.65 1,688.23 8,804.50
2019 1,911.14 1,876.34 2,844.50 2,367.75 8,999.72
2020 1,882.32 2,839.10 3,116.30 2,440.18 10,277.90
2021 1,862.95 3,172.68 3,483.42 2,563.83 11,082.88
2022 1,845.28 2,875.43 3,932.64 2,952.24 11,605.59

Total Asset Investable Assets

8,230.75 8,804.50 8,999.72 10,277.90 11,082.88 11,605.59
23%
Share &
Debentures
29%
Short term
Fixed assets
and other
7%
Share &
Debentures
Long term

41%
2017 2018 2019 2020 2021 2022 Cash at Bank

POSITION OF INVESTABLE ASSETS

Particulars 2021 % 2020 %

Share & Debentures
Short term 2,176.71 23 2,520.70 31
Long term 698.71 7 651.97 5
Total: 2,875.43 30 3,172.68 36
Cash in Bank 3,932.64 41 3,483.42 35
Fixed assets and other 2,752.22 29 2,769.89 29
Total: 9,560.29 100 9,425.99 100

Reliance Insurance Limited

Annual Report 2022
 Disclosures
Additional
199

ADDITIONAL DISCLOSURES,
CHECKLIST & MISCELLANEOUS
200
Human Resource
Valuation and Accounting
The Concept & Its Importance for Reliance Insurance Limited
HUMAN RESOURCE VALUATION
Human Resource valuation means the identification and
measurement of the value of Human Resources and then
supplying this information to the interested parties. It is
sometimes also defined as a method of assigning value
to the employees on the basis of their future economic
services to the organization. The employees of value at the
present worth of the services they are expected to render
during their stay in the organization or a particular period
of time.
HUMAN RESOURCE ACCOUNTING
A resource is defined as an object which can provide
expected future services. Hence, objects which do not
have expected future service potential cannot by definition,
be resources. People being capable of rendering future
services, such potential services constitute a form of capital.
Human Resource Accounting (HRA) is the process of
identifying, measuring, and communicating data about
human resources. Flamhoitz (1974) defined HRA as
‘Accounting for people as an organizational resource. It
involves measuring the costs incurred by business firms and
other organizations to recruit, select, hire, train and develop
human assets. It also involves measuring the economic
value of people to the organization’.
WHAT IS THE NEED AND IMPORTANCE OF HR
VALUATION AND ACCOUNTING?
HR valuation tells the potential investors about the human
assets of a company. The investors can assess the returns
from human assets which in fact is the return they get
from the people who are managing their investments. It
also assures the customers of the company that it has the
requisite human capital reserves to service their demand.
The employees of the company also feel assured when
they come to know that they are counted as assets by the
company and not expenses. HR valuation also serves as a
tool for improved performance appraisal and man power
assessment. It also helps the management in realizing
the present value of its future commitment of providing
employee compensation. It also helps the management
in taking appropriate decision regarding the use of human
assets. Managers get valuable feedback regarding the
effectiveness of their HR policies and practices.
PRACTICE IN RIL
In RIL, we are following conventional accounting practice
and not capitalizing any HR cost and amortize it over
service life of employees. However, we are taking benefits
of HR valuation and accounting concepts and using the
information (such as per employee cost to the company,
Reliance Insurance Limited
Annual Report 2022
per employee training & development cost, expected
service life of employees, per capita productivity and its
growth over periods etc.) in making important management
decisions that will benefit the long-run strategic goals and
profitability of the Company.
Human Resource accounting information provides useful
information to our management, financial analysts and
employees as stated below:
Helps the management in the recruiting, locating and
utilization of human resources.
Helps in deciding the transfers, promotion and training
of employees
It provides a basis for planning of physical assets vis-à-
vis Head Count.
It assists in evaluating the expenditure incurred for
imparting further education and training in employees
in terms of the benefits derived by the organization.
It helps to identify the causes of employee turnover
at various levels and taking preventive measures to
contain it.
It helps in locating the real cause for low/high return on
investment, improper or under-utilization of physical
assets or employees.
It helps in understanding and assessing the inner
strength of an organization and helps the management
to steer the company well through most adverse and
unfavorable circumstances.
It provides valuable information for persons interested
in making long term investment.
It helps employees in improving their performance. It
makes each of them to understand his contribution
towards the betterment of the firm vis-à-vis the
expenditure incurred by the firm on him.
HUMAN RESOURCES POLICY
At RIL, we recognize that our employees are the key to
our success and nothing can be achieved without their
engagement. Our Human Resources Policy encompasses
the guidelines which constitute a solid basis for effective
Human Resources Management throughout the
organization. It explains to all RIL employees the vision
and mission of the Human Resources function and
illustrates every aspect of our employees’ lifecycle. The RIL
Management inspire all the employees in their actions and
in their dealings with others.

RIL Human Resources Policy specifically aims to do the
following:
We believe, keeping employees motivated and
engaged is not only about remuneration and benefits,
it is also about the trust that our name brings to
those who work in RIL; the relationships with our
line managers and fellow workers; recognition and
experiences enjoyed; and possibilities to learn and
grow. These are as a whole, the Total Rewards our
employees receive without any regard to age, sex,
race, political belief and religion.
Reliance Insurance, therefore, focuses on fixed pay,
variable pay, benefits, personal growth and work life
balance as the key elements that define Total Rewards.
At Reliance we try to create a climate of trust, mutual
respect and support within the company which
encourage the employees to work well together as a
team and at the same time, to encourage them to be
innovative and creative in order to achieve company
goals.
To maintain a congenial working environment which
allows employees to work with maximum effectiveness
and to ensure that safety rules and hygiene are strictly
observed.
Provide information to employees regularly about
different aspects of the operation and its progress
which are relevant to them and involve them in matters
which are of concern to their job and work situation.
201
To develop an effective internal communication and
involvement mechanism which encourage employees
to identify themselves with the company and its
activities.
To adopt and institute a planned and systematic
approach to anticipated changes and develop plans
for preparing employees for technological and
environmental changes.
To identify employees’ training and development
needs and provide them with necessary development
opportunities for them to advance in their career.
To ensure that employment opportunities conform
to the established and acceptable practices of the
country.
To ensure that there are proper manpower planning
and forecasting system in place to ensure that there
will be enough people with the right skills and talents
to meet company’s current and future growths and
needs.
To ensure that there are transparent processes in place
for selection, promotion, appraisal and performance
management, reward & recognition systems.
To put in place succession plans for all senior
management positions in the company.
To ensure that people with high capabilities proven
by track record reach key management position
regardless of their sex, religion, caste, creed and more
importantly age and seniority.
CHECKLIST & MISCELLANEOUS
ADDITIONAL DISCLOSURES,
202

Human Resources Management

EMPLOYEE PROFILE
We strive to make Reliance a great workplace by creating
a performance driven culture that rewards success and
encourages employees to take control of their personal
development through the process of learning and rewarding
we intent to enable individuals to think, behave, take actions
and make decision independently.
SALARY POLICY
We target a fair human resources management by using
a performance-based system. Our salary policy is same
in all branches and service points for the beginner level.
In addition, to drive further development of individual
skill, increment is given based on performance. There is
no incident of discrimination in terms of remuneration
provided to male and female employees.

BENEFITS TO EMPLOYEES
Every employee is paid salary on monthly basis, which is a combination of basic salary, fringe benefits
and other benefits disbursed within 25th to 30th of each month. Reliance’s benefit schemes are as
follows:

FRINGE BENEFIT OTHER BENEFIT RETIREMENT BENEFIT

SCHEMES SCHEMES PLANS
House rent allowance Festival bonus Provident fund
Conveyance allowance Performance (PLV) Bonus Gratuity
Medical allowance Group life insurance Leave encashment
Leave fare assistance Hospitalization Scheme
Dearness allowance House loan support
scheme
Personal pay
Car Scheme
Special allowance
Provident fund loan
Special conveyance
allowance Mobile handset allowance

END SERVICE BENEFIT PLANS MINIMUM NOTICE
PERIOD REGARDING OPERATIONAL CHANGES
Minimum notice period before switching job is 2 months for
regular employees and 1 month for contractual employees.
Minimum notice period before changing department is
1-30 days as per situation or demand of concerned branch/
department.
EMPLOYEES BY REGION
Reliance’s employees are mainly spread over Dhaka and
Chittagong. It retains the highest number of employees
in Dhaka, which was 62% in 2022 for corporate office and
branches in Dhaka city. We follow fair hiring process which
demonstrates no discrimination in locality, religion of
employees in this process.
GENDER POSITIONING OF EMPLOYEES
Reliance has been maintaining a very balanced male and
female ratio, which was not only reflected in the board of
directors but also in the company management at different
levels.
PER EMPLOYEE AVERAGE SALARY
The number of employees was 314 persons engaged at
reporting date who received an average remuneration of
Tk. 36,000 and above per month.

Reliance Insurance Limited

Annual Report 2022
 203

EMPLOYEE BY NUMBER

Particulars 2017 2018 2019 2020 2021 2022

Total Number of Employees 348 340 331 323 320 314

Total Male Employees 311 303 293 282 281 275

Total Female Employees 37 37 38 41 39 39

Total Separation 28 29 32 27 31 30

Total Inclusion 21 21 23 19 34 24

Employee Turnover Rate 7.84% 8.33% 9.41% 8.16% 9.60% 9.38%

GENDER DIVERSITY TRAINING COST PER EMPLOYEE

Gender diversity in a workplace means that men and women
are hired at a comparable rate, paid evenly, and given the
same working opportunities with equal promotions.
Gender positioning by Directors
10
Male
Reliance always emphasizes on training & development
for its employees for their professional advancements.
The company arranges training and workshops in its well-
equipped own training centre in regular interval and also
nominates significant number of employees to attend local
and international programs and all these training programs
were arranged virtually instead of physical presence.

7
Female
17
Total no. of
Directors

CHECKLIST & MISCELLANEOUS

ADDITIONAL DISCLOSURES,
204

Glossary
Terms Meaning
Account Payable Amount owed to a creditor for delivered goods or completed services.
Accounting Policies The specific principles, bases conventions, rules, and practices adopted by the enterprise in
preparing and presenting financial statements.
Accounting Profit Profit or Loss for a period before deducting tax expense.
Accounts Receivable Short-term monetary assets that arise from sales on credit to customers at either the
wholesale or the retail level.
Accrual Accounting The reporting of revenues from sales in the period in which they are sold, regardless of when
the cash is received, and the reporting of expenses in the period of purchase, regardless of
when the payment is made.
Active Market A market in which transactions for the asset or liability take place with sufficient frequency and
volume to provide pricing information on an ongoing basis.
Amortization Amortization is the systemic allocation of the depreciable amount of an intangible asset over
its useful life.
Bangladesh Financial are Standards and Interpretations adopted by ICAB from the International Financial Reporting
Reporting Standards Standards(IFRS). BFRS comprise:
(BFRSs)
a) Bangladesh Financial Reporting Standards;
b) Bangladesh Accounting Standards;
c) BFR Interpretations; and
d) BAS Interpretations
Book Value The total assets of a company less total liabilities; owners' equity; Fixed Assets less
Depreciation.
Borrowing costs Interest and other costs that an entity incurs in connection with the borrowing of funds
Budget Financial plan that serves as an estimate of future cost, revenues or both.
Carrying Amount The amount at which an asset is recognized in the balance sheet after deducting any
accumulated depreciation and accumulated impairment losses thereon.
Carrying amount The amount at which an asset is recognised after deducting any accumulated impairment
losses thereon.
Carrying amount The amount at which an asset is recognised in the statement of financial position.
Cash Cash on hand and demand deposits
Cash Equivalents Short term, highly liquid investments that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value.
Cash equivalents Short-term, highly liquid investments that are readily covertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
Cash Flow Statement A financial statement that shows a company's sources and uses of cash during an accounting
period.
Cash flows Inflows and outflows of cash and cash equivalents.
Cedant The policyholder under a reinsurance contract.
Claim A demand made by the insured or the insured’s beneficiary for payment of the benefit as
provided by the policy.
Contingent liability Is:
(a) A possible obligation that arises from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the entity; or
(b) a present obligation that arises from past events but is not recognised because:
(i) it is not possible that an outflow of resources embodying economic benefits will be required
to settle the obligation; or
(ii) the amount of the obligation cannot be measured with sufficient reliability.
Current Tax The amount of income taxes payable (recoverable) in respect of taxable profit (tax loss) for a
period.

Reliance Insurance Limited

Annual Report 2022
 205

Terms Meaning
Deductible temporary Temporary differences between the carrying amount of an asset or liability in the balance
differences sheet and its tax base that will result in amounts that are deductible in determining taxable
profit (tax loss) of future periods when the carrying amount of the asset or liability is recovered
or settled.
Deferred tax assets The amounts of income taxes recovered in future periods in respect of:
(a) deductible temporary differences;
(b) the carry forward of unused tax losses; and
(c) the carry forward of unused tax credits.
Deferred tax liabilities The amounts of income taxes recovered in future periods in respect of taxable temporary
differences.
Depreciation The systemic allocation of the depreciable amount of an asset over its useful life.
Direct insurance contract An insurance contract that is not a reinsurance contract.
Dividends Distributions of profits to holders of equity instruments in proportion to their holdings of a
particular class of capital.
Earnings Per Share (EPS) EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the
Company by the weighted average number of ordinary shares outstanding during the period.
Events after the reporting Those events, favourable and unfavourable, that occur between the end of the reporting
period period and the date when the financial statements are authorised for issue. Two types of event
scan be identified:

(a) those that provide evidence of conditions that existed at the end of the reporting period
(adjusting events after the reporting period); and

(b) those that are indicative of conditions that arose after the reporting period (non-adjusting
events after the reporting period).
Fair Market Value Fair market value is the price that two parties are willing to pay for an asset or liability when
both parties have full information and are not pressured to close the sale.
Fair value The amount for which an asset could be exchanged, a liability settled, or an equity instrument
granted could be exchange, between knowledgeable, willing parties in an arm's length
transaction.
Generally Accepted The conventions, rules, and procedures necessary to define accepted accounting practice at
Account Principles (GAAP) a particular time.
Gross premium That is the total sum before expenses or cost.
underwritten
Held to maturity Financial assets with fixed or determinable payments and fixed maturity that an enterprise has
investment the positive intent and ability to hold to maturity other than loans and receivables originated
by the enterprise.
Insurance contract A contract under which one party (the insurer) accepts significant insurance risk from another
party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain
future event (the insured event) adversely affects the policyholder.
Insurance liability An insurer's net contractual obligations under an insurance contract.
Insurance risk Risk, other that financial risk, transferred from the holder of a contract to the issuer.
Insurer The party that has an obligation under an insurance contract to compensate a policyholder if
an insured event occurs.
CHECKLIST & MISCELLANEOUS

Intangible Assets Long-term assets that have no physical substance but have a value based on rights or
ADDITIONAL DISCLOSURES,

privileges accruing to the owner.

Interest The cost associated with the use of money for a specific period of time.
Market Value The amount obtainable from the sale or payable on the acquisition, of a financial instrument in
an active market.
Marketable Securities An investment in securities which are readily marketable; temporary investments.
Net Premium underwritten Gross Premium less ceded Reinsurance.
206

Terms Meaning
Ordinary share An equity instrument that is subordinate to all other classes of equity instruments.
Policy holder A party that has a right to compensations under a insurance contract if an insured event
occurs.
Post-employment benefits Formal or informal arrangements under which an entity provides post-employment benefits
for one or more employees.
Premium The price of insurance protection for a specified risk for a specified period of time.
Prepaid Expenses The expenses paid in advance that do not expire during the current accounting period.
Prior period errors Omissions from, and misstatements in, the entity's financial statements for one or more prior
periods arising from a failure to use, or misuse of, reliable information that:

(a) was available when financial statements for those periods were authorised for issue; and

(b) could reasonably be expected to have been obtained and taken into account in the
preparation and presentation of those financial statements.

Such errors include the effects of mathematical mistakes in applying accounting policies,
oversights or misinterpretations of facts, and fraud.
Property, plant and Tangible items that:
equipment
(a) are held for use in the production or supply of goods or services, for rental to others, or for
administrative purpose; and

(b) are expected to be used during more than one period.

Provision A liability of uncertain timing or amount.
Re – insurance Also known as “Insurance for insurers”. The contract between an insurance company and a
third party to protect the insurance company from loss.
Reinsurance assets A cedant's net contractual rights under a reinsurance contract.
Related party Transaction A transfer of resources or obligations between related parties, regardless of whether a price is
charged.
Reserve for Exceptional A reserve either specific or general required by law.
Losses
Return on Assets A measure of profitability that shows how efficiently a company is using all its assets.
Revenue The gross inflow of economics benefits during the period arising in the course of the ordinary
activities of an entity when those inflows result in arise in equity, other than increases relating
to contributions from equity participants.
Tangible Assets Long-term assets that have physical substance.
Tax expense (tax income) The aggregate amount included in the determination of profit or loss for the period in respect
of current tax and deferred tax. Tax expense (tax income) comprises current tax expense
(current tax income) and deferred tax expense (deferred tax income).
taxable temporary Temporary differences that will result in taxable amounts in determining taxable profit (tax
differences loss) of future periods when the carrying amount of the asset or liability is recovered or settled.
Unpaid Dividend A dividend that is owed to stockholders of record but has yet to be distributed.
Useful life The estimated remaining period, from the commencement of the lease term, without
limitation by the lease term, over which the economic benefits embodied in the asset are
expected to be consumed by the entity.
Working Capital The amount by which the total current assets exceed total current liabilities.

Reliance Insurance Limited

Annual Report 2022
 207

Disclosure Checklist as per

ICMAB Evaluation Criteria
Sl. No. EVALUATION CRITERIA Page No.
A Capitalization and Solvency
1 External Liability Ratio
2 Internal Capital General Ratio
197
3 Exceptional Loss Reserve to Net Premium
4 Capital and Fund to Total Assets
B Technical
1 Retention Ratio
2 Claim Ratio 197
3 Premium to Equity
C Profitability
1 Gross Underwriting Margin Return
2 Return on Average Assets (ROAA)
3 Return on Average Equity (ROAE)
4 Available Solvency Margin 197
5 Management Expense to Net Premium
6 Agency Commission to Net Premium
7 Underwriting Profit on Gross Premium
D Liquidity & Funding
1 Current Ratio 66
2 Liquid Assets to Total Insurance Fund
197
3 Total Liquid Assets to Total Assets
E External Credit Rating (ECA)
1 Short Term
3, 101
2 Long Term
F Corporate Governance
1 No of Non-shareholding Director
2 Single Family Dominated Board
3 Shareholding Concentration (Public)
154
4 Audit committee Led by Independent Directors
5 Director's Minimum Shareholding
6 Audit Opinion
G Performance with Respect to Shareholders
1 Dividend Yield 66
2 Net Asset Value (NAV) Growth 197
3 Capital Appreciation 197
H Human Resources Management
1 No. of Employee
2 Per Employee Average Salary
202, 203
CHECKLIST & MISCELLANEOUS

3 Gender Diversity
ADDITIONAL DISCLOSURES,

4 Training Cost Per Employee

I Corporate Social Responsibility (CSR)
1 CSR to Net Income (%) 99
J Regulatory Authority
1 Contribution to National Exchequer 56, 85
208

Disclosure Checklist
regarding Secretarial Standard
Compliance Status
(“√” in appropriate
Remarks
Title column)
(if any)
Not
Complied
Complied
Convening of a Meeting
Authority
Any Director of a company including the Chairman may, and the Secretary on the √
requisition of a Director shall, at any time, summon a Meeting of the Board unless
the Articles of the company provide otherwise.
Notice
Every Director of the Company shall be entitled to get the Notice of every Meeting √
in writing in any mode including by hand or by post or by facsimile or by e-mail
or by any other electronic mode. A director may specify any particular mode to
receive such notices. If any of the Directors so specifies, -the Notice shall be sent to
him by such mode.
The Notice of the Meeting shall specify the day, date, time and full address of the √
venue wherein the Meeting be held.
A Meeting may be held at any place, any time, on any day √
The Notice of a Meeting shall be given in respect of all meetings including the √
Meetings which are held on pre-determined dates or at pre-determined intervals.
Notice shall be given at least seven (7) days before scheduled date of the Meeting √
unless the Articles of the company denote a longer period for such notice.
Notice need not to be given of an adjourned Meeting other than a Meeting that has √
been adjourned "sine die". However, Notice of the reconvened adjourned Meeting
shall be given to those Directors who were absent in the Meeting which had been
adjourned.
Unless a Notice has not been given to the directors then no business shall be √
transacted at a Meeting.
The Agenda as to be transacted at the Meeting along with Notes to the Agenda √
shall be circulated or sent at least three (3) days before the date of the Meeting.
Each Agenda to be transacted in the meeting shall be supported by notes, details √
of the item and, where a Resolution is required to be passed, the draft Resolution
shall be attached with the Notice.
The Notice may be given at shorter period of time than those respectively stated √
above if the majority of members of the Board or Committee so agree. The
proposal to hold the Meeting at a shorter notice shall be stated in the Notice and
the fact that consent thereto was obtained shall also be recorded in the Minutes.
Notice, Agenda and Notes on Agenda shall be given to all Directors or to all √
Members of the Committee, as the case may be, at their respective addresses as
provided by them, whether in Bangladesh or abroad, and shall also be given to the
Original Director, even when the Notice, Agenda and Notes on Agenda have been
sent to the Alternate Director.
Any supplementary item not originally included in the Agenda may be taken up √
for consideration with the permission of the Chairman and with the consent of the
majority of the Directors present in the Meeting. However, no supplementary item
which is of significance or is in the nature of unpublished price sensitive information
shall be taken up by the Board without prior written Notice.
Frequency of Meetings

Reliance Insurance Limited

Annual Report 2022
 209

Compliance Status
(“√” in appropriate
Remarks
Title column)
(if any)
Not
Complied
Complied
Meetings of the Board
The Board shall meet at least once in every quarter of a calendar year i.e in three √
months, and at least four Meetings are to be held in each year. The maximum
interval between any two Meetings shall not be more than 90 days.
Each Meeting shall be of such duration to enable proper deliberations to take place √
on agenda or items placed before the Board.
Meetings of Committees
Committees shall meet at least as often as stipulated by the Board or as prescribed √
by any other authority.
Quorum
Meetings of the Board
Quorum shall be present throughout the Meeting. No business shall be transacted √
unless the Quorum is so present.
Where the number of Directors is reduced below the minimum fixed by the √
Articles, no business shall be transacted unless the number is first made up by the
remaining Director(s) or through a general meeting.
Meetings of Committees
The presence of all the members of any Committee constituted by the Board is √
necessary to form the Quorum for Meetings of such Committee unless otherwise
stipulated by the Board while constituting the Committee.
Attendance at Meetings
An Attendance Register shall be maintained containing the names and signatures √
of the Directors present at the Meeting.
Leave of absence shall be granted to a Director only when a request for such leave √
has been communicated to the Secretary or to the Board or to the Chairman.
Chairman
Meetings of the Board.
Every company shall have a Chairman who will preside over the Meetings of the √
Board.
It will be the duty of the Chairman to look into that the Meeting is duly convened √
and constituted as per the provisions of the Act or any other applicable guidelines,
Rules and Regulations before it proceeds to transact business.
The Chairman shall then conduct the proceedings of the Meeting and ensure that √
only those items of business as have been set out in the Agenda are transacted and
ideally in the order in which the items, appear on the Agenda.
The Chairman shall encourage deliberations and debate and assess the sense of √
CHECKLIST & MISCELLANEOUS
ADDITIONAL DISCLOSURES,

the Meeting. The Chairman shall ensure that the proceedings of the Meeting are
correctly recorded and, in doing so, he may include or exclude any matter as he
deems fit.
In the case of a public company, if the Chairman himself is interested in any item of √
business, he shall entrust any other dis-interested Director present to conduct the
proceedings in respect of such item. After the transaction of the item of business is
over then the Chairman may resume his position.
210

Compliance Status
(“√” in appropriate
Remarks
Title column)
(if any)
Not
Complied
Complied
Meetings of Committees
The Board, while constituting any Committee, shall also appoint the Chairman of √
the Committee so constituted.
Passing of Resolution by Circulation
A Resolution proposed to be passed by circulation shall be sent in draft, together √
with supporting papers to all the Directors separately, and in the case of a
Committee, to all the members of the Committee.
The Resolution as to be passed by circulation and the supporting papers shall √
be circulated by hand, or by post, or by facsimile, or by e-mail or by any other
electronic mode.
The Resolution shall be deemed to have been passed on the date on which it is √
signed and dated as approved by all the Directors then in Bangladesh, being not
less than the Quorum, or on the date on which it is approved by the majority of the
Directors entitled to vote on the Resolution, whichever is earlier.
Resolutions sent for passing by circulation shall be noted along with the decision √
thereof, at the next Meeting of the Board or Committee, as the case may be, and to
be recorded in the Minutes of such Meeting.
The annual accounts of a company shall be approved at a Meeting of the Board √
and shall not be by a Resolution by circulation.
Quarterly or half-yearly financial results shall be approved at a Meeting of the Board √
or its Committee and shall not be by a Resolution by circulation.
In the case of a listed company, if there is any material variance between un-audited √
and audited results, the review report of the Auditors shall also be discussed
and approved at a Meeting of the Board and not approved by a Resolution by
circulation.
Minutes
Within fifteen days from the date of the Meeting of the Board or Committee or of an √
adjourned Meeting, the draft Minutes thereof shall be circulated to all the members
of the Board or the Committee, as the case may be, for their necessary comments.
The Minutes of proceedings of a Meeting shall be entered in the Minutes Book √
within thirty days from the conclusion of the Meeting.
In any case a Meeting is adjourned; the Minutes shall be entered in respect of the √
original Meeting as well as the adjourned Meeting within thirty days from the date
of the respective Meetings. In respect of a Meeting adjourned for want of Quorum,
a statement to that effect shall be recorded in the Minutes Book by the Chairman or
any Director as designated by the Board who was physically present at the Meeting.
The date of entering the Minutes shall be specified in the Minutes Book by the √
Secretary.
The Chairman shall put his initial on each page of the Minutes, and put his full √
signature on the last page of the Minutes along with the date of signing of the
Minutes.
Minutes shall not be pasted or attached to the Minutes Book. √
Minutes, if maintained in loose-leaf form, shall be bound at intervals coinciding with √
the financial year of the company.
Extracts of the Minutes shall be given only after the Minutes have duly been signed. √
However, certified copies of any Resolution passed at a Meeting may be issued
even pending signing of the Minutes by the Chairman, if the draft of that Resolution
had been placed at the Meeting and was duly approved.
Minutes of an earlier Meeting shall be noted at the next Meeting. √
Any alteration, other than grammatical, typographical or minor corrections, in the √
Minutes as entered, shall be made only under the approval taken in the subsequent
Meeting in which such Minutes are sought to be altered.

Reliance Insurance Limited

Annual Report 2022
 211

Compliance Status
(“√” in appropriate
Remarks
Title column)
(if any)
Not
Complied
Complied
The Minutes of Meetings of any Committee shall be circulated to the Members of √
the Board along with the Agenda for the Meeting of the Board next following such
Meeting of the Committee and shall be noted at the Board Meeting.
Attendance in Meetings and their Recording in the Minutes
The names of the Directors present in the Meeting along with the names of persons √
who were in attendance and the names of invitees in the Meeting, if any, shall be
recorded in the Minutes.
Apart from the Resolution or the decision, the Minutes shall mention the brief √
background of the proposal and the rationale for passing the Resolution or taking
of the decision.
The names of the Directors who have dissented or have abstained from the √
decision shall be recorded. Similarly, the fact that an interested Director who did
not participate in the discussion or vote on the agenda shall also be recorded in the
Minutes.
Wherever any approval of the Board or of the Committee is taken on the basis √
of certain papers laid before the Board or the Committee, proper identification
by initialing of such papers by the Chairman or any Director shall be made and a
reference thereto shall be made in the Minutes.
Preservation of Minutes and Supporting Papers
The Minutes of all Meetings shall be preserved permanently. √
If a company has been merged or amalgamated with any other company, the √
Minutes of all Meetings of the Board and Committees of the transferor company
shall be preserved permanently by the transferee company for any future
references notwithstanding the fact that the identity of the transferor company may
not survive under such arrangement.
All office copies of Notices, Agenda and Notes to Agenda and other related papers √
shall be preserved in orderly manner for as long as they remain current or for twelve
years, whichever is later, and may not be destroyed thereafter without the authority
of the Board.
Disclosure
The Annual Report of a company shall disclose the number of Meetings of the √
Board and Committees held during the year indicating the number of Meetings
attended by each Director.

CHECKLIST & MISCELLANEOUS

ADDITIONAL DISCLOSURES,
 Registered Office: Shanta Western Tower (Level-5)
186 Bir Uttam Mir Shawkat Ali Shorak
Tejgaon Industrial Area, Dhaka-1208, Bangladesh.

PROXY FORM
I/We ................................................................................................................................................................................................................................................................................................

of .................................................................................................................................................................................................................................................................................... being a

member of Reliance Insurance Limited do hereby appoint Mr./Ms. ..............................................................................................................................................

............................................................................................. or (failing his/her) Mr./Ms. ............................................................................................... as my/our proxy, to

vote for me/ us and on my/ our behalf at the Thirty Fifth Annual General Meeting of the company to be held on Thursday,

March 30, 2023 at 11:00 AM through online digital platform at https://relianceinsurance.virtualagmbd.com and any

adjournment thereof.

Revenue
Stamp
Tk. 20/-

Signature of proxy Signature of shareholder

Folio No .................................................................................................................................. BO A/C No ............................................................................................................................

N.B.: IMPORTANT
1. This form of proxy, duly completed, must be deposited at least 48 hours before the meeting at the company registered
office or its scanned copy should be sent through email at mukul@reliance-bd.com. Proxy is invalid if not signed and
stamped as explained above.
2. Signature of the Shareholders should agree with the Specimen signature registered with the Company and Depository
Register.

Registered Office: Shanta Western Tower (Level-5)

186 Bir Uttam Mir Shawkat Ali Shorak
Tejgaon Industrial Area, Dhaka-1208, Bangladesh.

ATTENDANCE SLIP
I hereby record my attendance at the Thirty Fifth Annual General Meeting of the Company will be held on Thursday,

March 30, 2023 at 11:00 AM through online digital platform at https://relianceinsurance.virtualagmbd.com and any

adjournment thereof.

Name of the Member/ Proxy ........................................................................................................................................................................................................................................

Register Folio/BO No ................................................................................................................................ holding ................................................................................................... share(s)

Signature ............................................................................................................................... Date ...........................................................................................................................................

Signature
N.B.: Signature of the Shareholders should agree with the Specimen signature registered with the Company and Depository
Register.
 C

CORPORATE OBJECTIVES,
VALUES & STRUCTURE
D

Reliance Insurance Limited

Annual Report 2022