Pragati Life Insurance Limited was established in 2000 with the motto "TRUST US for LIFE". It started with paid up capital of 30 million BDT and is owned by some renowned Bangladeshi business entrepreneurs. The company has grown significantly over the years, achieving a gross premium of 187.57 crore BDT in 2012. Pragati Life Insurance provides various individual and group insurance policies and has clear visions, missions, goals and objectives focused on customer satisfaction, ethical practices and benefitting stakeholders. It employs various risk management strategies and has experienced consistent growth in life fund and gross premium in recent years.

2. PRESENTATION
ON
PRAGATI
LIFEINSURANCE
LIMITED

3. Presented by
Abu Saief Md Rahat Bhuiyan

4. With the motto “TRUST US for LIFE” Pragati Life Insurance Ltd.
was introduced into the business market of Bangladesh on January
30, 2000. The company started it’s journey as a joint stock
company under the companies Act 1994. The company started
with a paid up capital of Tk. 30 million against an authorized
capital of Tk. 250 million. Pragati Life Insurance Ltd. has been
sponsored by some renowned business entrepreneurs of the
country linked to different industrial groups. They are now the
most repudiated insurance company in our country.

5. Vision
1.Want to be recognized as
the leader among insurance
companies in Bangladesh.
2.Their success will be built
on their absolute dedication
to the satisfaction of their
policyholders.
3.They will always apply
high standards of integrity
and responsibility in their
activities.
Mission
1.Their mission is to produce
and provide qualitative and
innovative insurance product.
2.Maintain ethical standard
in business operation.
3.Ensuring benefit to the
policyholders, shareholders
and society at large.

6. Goal
1.Earn profit in a way to
cover the claims of the
policyholders and a portion
of profit share to the
shareholders.
2.Provide the claims of the
policyholders within times.
3.Serve the policyholders
true satisfaction.
Objective
Their objectives are to
conduct transparent
business operation based
on market mechanism
within the legal and social
framework

7. Managing Director
Md. Jalalul Azim
Consultant
S R Khan
Additional Managing Director
Quamrul Hasan
Deputy Managing Director
M. M. MonirulAlam
Assistant Managing Director
Chandra Shekhar Das
ACA, Finance & Accounts
A.K.M. Mozammel Hossain Belal
Al-Haj Md. Jahangir Alam
Head of Takaful
Senior General Manager
K.A.S.M AzamUllahTipu
Head of Pragati Bima & Pragati Islami Bima
Division
Al-Haj Faruque Mahmud
Head of IPL(Polash)
Jahangir Hossain
Head of IPL(Bakul)
Md. Azharul Islam Mondal
Head of IDPS

8. Additional Managing Director
Deputy Director
Managing Director
Consultant
Assistant Managing Director
General Manager
Deputy General Manager
Assistant General Manager
Senior Manager
Manager

9. Pragati life insurance ltd. have achieved 187.57 crore gross premium in the year 2012.
This achievement was possible by superior service quality, innovative products and
good management. In the year 2012 life fund under review showed a growth of 22%
over the previous year (2011). The total life fund stood at tk. 315.31 crore at the end of
2012 which is a great achievement of the company.
Taka in
Million
Growth Growth Growt
h
Growth Growth
2008 with with with with with
Year respect to 2009 respect 2010 respect 2011 respect 2012 respect
2007 to 2008 to
2009
to 2010 to 2011
(%) (%) (%) (%) (%)
Life Fund 1058.86 33.25 1511.23 42.73 2119.
10
40.2
2
2593.7
9
22 3153.1
4
22
Gross
Premium
736.47 29.28 1105.30 50.08 1795.2
2
62.41 1917.72 6.82 1870.5
7
(2.45)

10. 0
500,000,000
1,000,000,000
1,500,000,000
2,000,000,000
2,500,000,000
3,000,000,000
3,500,000,000
4,000,000,000
4,500,000,000
5,000,000,000
2012 2011 2010 2009 2008
Capital & Expenditure
Capital Expenditure

11. Presented by
Mohammad Ali

12. (Under this category contain 14 policy)
a)Plan 01-JIBON SATHI (with Bonus)
b) Plan 02- JIBON PROTTASHA (with Bonus)
c) Plan 03- JIBON TORI (with Profit)
d) Plan 04-JIBON SOMAHAR ( with Profit)
e) Plan 05- JIBON ALO (with Bonus)
f) Plan 06-JIBON BONDHU (with Bonus)
g) Plan 07-JIBON ABOKASH (Pension)
1.Individual product Line
Insurance policies of pragati life insurance policies
Insurance policy of pragati life insurance can be classified into 4 basic categories
.These are

13. 2.Group insurance
h) Plan 08-JIBON BIKASH (Child Education)
i) Plan 09- CORPORATE PLAN
j) Plan 10-JIBON UTTORON (Joint Life)
k)Plan 11- JIBON PARASH (Health Insurance)
l)Plan 12-JIBON SHONCHOI (Single Premium)
m)Plan 13-Jibon Purnota (Hajj Bima) Islami Insurance
n)Plan 14-Jibon Bondhonslami Insurance
It contains 4 categories
a)Plan 01-Group Term Life (GT)
b)Plan 02-Group Term Life Insurance with Refund of Premium
c)Plan 03-Group Endowment Insurance
d)Plan 04-Group Insured Provident Fund (GIPF)

14. a)Plan 01-Shonchoi 3-in-1 Policy
b)Plan 02- - Shonchoi 3 payments Policy
c)Plan 03-Shonchoi 4 payments Policy
d)Plan 04- Sonchoisomahar policy
e)Plan 05- - Education Endowment Policy
f)Plan 06-- DPS (Pension Policy)
g)Plan 07-Jibon Sanchay
3. Health insurance
It contains 2 categories
a)Plan 01-Individual Hospitalization Insurance Plan
b)Plan 02- Group Hospitalization Insurance Plan
4. Pragatibima

15. RISK ISSUES OF THE COMPANY
Definition of Risk
Risk is a term which refers to the probable disadvantageous, undesirable or
unprofitable outcome of a fortuitous event, an event which is not desired, but
nevertheless taking place.
Types of Risk
Financial Risks
These are the risks where the outcome of an event can be measured in monetary terms.
None-Financial Risks
When the possibility of a financial loss doesn’t exist,then the situation can be
referred to as none- financial risk.

16. Pure Risk
Pure risk situations are those where there is the possibility of loss &
no loss.
Speculative Risk
Speculative risk are those where there is possibility of gain as well
as loss.
Fundamental Risk
These are the risks which arise from causes that are beyond the
control of an individual or group of individuals.
Particular Risk
The risks which usually arise from actions of individuals or even group
of individuals.

17. a) Duration of policy
b) Nature of Life Style
c) Statistics
d) Probability of loss
e) Frequency of loss
f) Nature of insured
Risk Management Tools
Proper risk measurement tools are essential for all insurance company in order to
face calculative risk. Pragati life insurance ltd. follows some risk measurement
tools. These tools are-

18. Risk Management Process
The some general steps can be used to systematically analyze and deal with risk,
known as the risk management process. At this point we can be summarized as
follows:
Risk
Management
Process
Indentify the Loss Exposures
Establishing the Context
Assessing the Loss Exposure
Potential Risk Treatments
Implementation

19. INSURANCE PRICING,CLAIM SETTLEMENT & COMPANY
ANALYSIS
Presented by
Md Mohaiminul Islam

20. Pricing Process
Pragati Life Insurance Limited is continuously developing its
products depending on the trend of the market, changes in financial
market and social market. In order to meet the present stiff
competition and challenges the company is constantly trying to
upgrade its existing product range and to develop new innovative
products as well. The company designs their product prices
according to the need of their customers in order to meet the
competition. The pricing is done primarily on the basis of age
primarily and then on other criterion.

21. Pricing Elements
Agents commission
Administration cost
Return from investment of Premium.
Pragati life Insurance Limited considers three things as their pricing
elements.

22. Claim Settlement Procedure
 The policy holder calls up the insurer claiming the insurance asking
about all the minute details of the process of claiming the same along with
the documents required.
 The insurance company asks for the details of the loss and the relevant
documents in support of the claim
 A notice has to be issued be the policy holder for claiming the same with
utmost urgency mentioning all the possible details (name of the policy
holder, names of the persons associated with the accident, witness
particulars, their addresses etc.

23.  The company would make all the possible queries and inspections by
the company representatives or consultants
 They have the right to inspect all the relevant properties related with
the loss along with police verifications and determination of the
policy holder’s liability structure
 The processing period is mentioned in the contract document , which
is the approximate time required for verification of the genuineness of
the insurance claim
 On agreement of claim amount between the insured and the insurer,
the claim is settled

24. Reinsurance Management
The Company maintains reinsurance arrangement with Munich
Reinsurance Company of Germany since its inception. The net
retention of the company for individual life is Tk. 2 lac per policy and
for Group life Tk. 10 lac per person of risk. Reinsurance premium is
recorded as an expense evenly over the period of the reinsurance
contact and off-set against the premium income of respective year. The
claim recoveries arising out of reinsurance contracts are off-set against
the claims expenses of respective year

25. SWOT Analysis
SWOT is for Strengths, Weaknesses, Opportunities and Threats. The SWOT
analysis of pragati life insurance company Ltd is given below:
Strengths
• High standard of integrity and
responsibility
• constant innovation
• operational efficiency
• cost effectiveness
Weakness
• Weak governance
• Weak management
• No policy for risk management
Opportunities
• Large potential market
• Lower operational cost
• Government support
Threats
• Economic instability
• Global crisis
• Risk involves with the customer
SWOT

26. Presented by
Md Mozaffar Hossain

27. To measure the performance of the company we go through some
analysis. These analysis may include
• Trend Analysis
• Cross sectional analysis
• Common Size Statement analysis
• Scenario Analysis
• Sensitivity analysis etc.

28. An aspect of technical analysis that tries to predict the future movement
of company’s financial condition based on past data. Trend analysis is
based on the idea that what has happened in the past which gives an
idea of what will happen in the future.
In trend analysis we analyze
• Profitability index
• Current ratio
• Return on asset
• Expenses of Management to premium Ratio
• Return on equity
• Debt to equity ratio
• Claim on premium
Trend analysis

29. Results of some ratio analysis of Pragati Life Insurance as per
2012 are shown below_
• Profitability index= 12.01%
• Current ratio= 4.59:1
• Return on asset= 7.06%
• Asset-Premium ratio= 58.84%
• Claim to Premium Ratio= 32%
• Expenses of Management to premium= 46.36%

30. Company
Name Profitability Expense on
Premium
Claim to
Premium
ROA
Pragati Life
Insurance
12.01% 46.36% 32% 7.06%
Sandhani
Life Insurance
6.54% 39.32% 41.06% 4.29%
National Life
Insurance
8.56% 41.98% 44.41% 3.31%
In this part of the chapter we will compare the trend analysis results of Pragati
Life Insurance with other life insurance companies
We will here compare Pragati Life Insurance with Sandhani
Life Insurance and National Life Insurance
Cross sectional analysis

31. Premium 100%
Interest 7.51%
Income Tax 0.69%
Dividend 0.48%
In this segment we compare the prime elements of income statement
and balance sheet and their ups and downs comparing with the
amount of premium of a particular year. Major elements here are
weighted here with total premium collected.
On this basis income statement of 2012 of Pragati Life Insurance
Looks like this
Common Size Statement analysis

32. And the balance sheet looks as
Shareholder’s capital 5.02%
Liabilities 14.03%
Asset 169.95%

33. In present insurance is too much important to the business and individual
sector. Most of the companies provide more or less same services. For
this reason the competitions increasing day by day between the insurance
companies. Pragati life insurance is the second largest insurance
company of Bangladesh. It has achieved “A” rating by CRISL for claim
paying ability. To meet the challenges the company is constantly trying
to upgrade its existing product range and to develop new innovative
products as well.

34. THANKYOU

35. ANY
QUESTIONS?