The document provides information about a presentation given by a group of students to their professor. The presentation was titled "Operations of General Insurance Companies in Bangladesh: A Case of Pioneer Insurance Company Limited". The summary discusses Pioneer Insurance Company Limited's products, organizational structure, financial performance analysis using ratios, and SWOT analysis. Recommendations are provided to improve the company's performance.

1. WELCOME TO OUR
PRESENTATION

2. Presentation Topic
“Operations of General Insurance Companies in Bangladesh:
A Case of Pioneer Insurance Company Limited”

3. PRESENED BY:
Group Name- Sensible
Group No-5
Group members:
Arup Kumar Saha 51429038
Md.Faysal Sarker 51429025
Mohammad Navid Bin Zahid 51429020
Md.Omar Faruk Rajib 51429064
Md.Shahidul Islam 51429010

4. PRESENED TO:
Nazmul Hasan Palash
Assistant Professor
University of Dhaka
Department of Banking and Insurance
EMBA Program
Course Name: Fundamentals of Insurance
Course Code: FB 503
Semester: Spring 2015

5. What is Insurance?
• Insurance is a system of spreading the risk of one
to the shoulders of many. It is a contract whereby
the insurers, on receipt of a consideration known
as premium, agree to indemnify the insured
against losses arising out of certain specified
unforeseen contingencies or perils insured against.

6. Evolution And Company Profile Of pioneer Insurance
1. Pioneer Insurance Company Limited was sponsored &
founded in 1996.
2. Having authorized capital of Tk. 1 (One) Billion/USD 12.50
Million.
3. Having paid up capital of Tk. 508.95 million/USD 6.53
Million.
4. Current Chairman Mr. A.K.M. Rahmatullah, Member of the
Parliament & Managing Director of Apex Tannery Ltd.
5. former Chairman Mr. Tapan Chowdhury, Managing
Director, Square Group & Ex-Adviser of the Care Taker
Government of People’s Republic of Bangladesh

7. COMPANY AT A GLANCE
Registered Head Office- Symphony (5th Floor), Plot #
SE(F), 9 Road # 142, South Avenue, Gulshan-1, Dhaka-
1212, Bangladesh.
Number Of Branches- 40.
Number Of Employees- 525.
Member of International Organization:
 Federation of Afro-Asian Insurers and Reinsurers
(FAIR).
 Association of Insurers and Reinsurers of Developing
Countries (AIRDC).

8. Vision of PICL
• To Foster the industrial & Economic growth of Bangladesh.
• To optimize the retention of Bangladesh business.
• To work towards minimization of losses and develop
Risk Management Technologies.
• To function as a strong and dynamic non-life insurer.

9. Mission of PICL
• To become the leading insurance company of Bangladesh excelling in every
aspect of its business and in delivering its obligations as a good corporate
citizen to its clients, employees, shareholders, public and to the country.
Caring for you, forever…
We Strive for.....
 Best Service to our Clients.
 Protection of Investment of Shareholders
 Welfare of our Employees
 Ethical and moral social order.
 Transparency in Disclosures.
 Good governance for us & all around us.

10. Products & Services
Fire Insurance
Industrial All Risks Insurance
Hotel Owners All Risks Insurance
Household Insurance
Consequential Loss Due to Fire
Insurance
Fire and Allied Perils Insurance
MOTOR Insurance
Increased Liability Insurance
Act Only Liability Insurance
Comprehensive Insurance

11. Products & Services
ENGINEERING Related Insurance
Deterioration of Stock Insurance
(DOS)
Electronic Equipment Insurance (EEI)
Machinery Loss of profit Insurance (BI
MB)
Machinery Insurance (MB)
Erection All Risks Insurance (EAR)
Contractors Plant & Machinery
Insurance (CPM)
Contractors All Risks Insurance (CAR)
MARINE Insurance
Marine Hull Insurance
Marine Cargo Insurance

12. Products & Services
Miscellaneous
 Hole in One Golf Tournament Insurance
 Fidelity Guarantee Insurance
 Cellular Mobile Phone Insurance
 Personal Accident Insurance
 Directors and Officers Liability Insurance
 Professional Indemnity Insurance
 Products Liability Insurance
 Money / cash in Transit Insurance
 Cash / Property in Premises
 All Risks Insurance

13. Shareholding Structure
68%
16%
16%
Shareholding pattern of PIEL
Sponsor Institutions General Public

14. Organizational Hierarchy
Board of Directors
Managing Director
and CEO
Consultant
Marketing
Admin
Additional
Managing Director
Reinsurance and
Special
Underwriting
Claims settlement
Deputy Managing
Director and CFO
Finance and
Accounts
MIS
HR

15. The Underwriting Process of PICL
• Establishing an Application File
• Medical examinations
• Inspection reports
• Underwriting in the field

16. Operational Description and analysis
• Reinsurance
• Claim Settlement
• Underwriting Quality and Expertise
• Retention Capacity
• Investment portfolio

17. SWOT analysis of PICL

18. Strength:
• Strong corporate Management
• Maintain strong network through the country.
• PIC has strength to attract actual and potential Customer’s to sustain in the challenging and
competitive market.
• Enough financial strength or own financial capability of the company

19. Weakness:
• Centralized decision making.
• Conflict in about power of authority among directors.
• Poor co-ordination and communication among different
departments.
• Marketing Officer are not educated enough about Insurance law.

20. Opportunities:
• Home country constraints are becoming flexible as because of govt.
are now very much aware to this sector advantages and
disadvantages.
• Target market is increasing at a higher rate on competitor’s
products
• Rapid growth of business function and chancing the current
market.

21. Threats:
• The market is very competitive
• Commission offered by competitors is some cases low
• Employee dissatisfactions for the current position in the company.

22. Performance Analysis
of
“Pioneer Insurance Company Limited”

23. GROSS PREMIUM & NET PREMIUM
1874.91
1701.27
1589.61
1252.37
895.45
876.03
792.48
718.48
531.31
393.36
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2013 2012 2011 2010 2008
Gross premium
Net premium
Interpretation: There is an upward trend in Gross premium & Net premium which is good for the
company.

24. GROSS PREMIUM (SEGMENT WISE)
804.14
647.93
190.27
230.57
0
100
200
300
400
500
600
700
800
900
Fire Marine Motor Misc
Gross premium(segment wise)
Interpretation: Pioneer insurance company receive a huge gross premium from fire insurance.

25. NET PREMIUM & UNDERWRITING RESULT
876.03
792.48
718.51
531.3
393.35
255.02
216.57
123.61
61.95 73.99
0
100
200
300
400
500
600
700
800
900
1000
2013 2012 2011 2010 2009
Net Premium Underwriting result
Interpretation: There is an upward trend in Net premium and difference between net premium and
underwriting result is high.

26. NET PROFIT & INVESTMENT INCOME
297.84
277.17
204.52
130.3
98.29
95.02
109.18
123.22 117.58
48.82
0
50
100
150
200
250
300
350
2013 2012 2011 2010 2009
Net Profit
Investment Income
Interpretation: There is an upward trend in Net profit which is a positive sign.

27. ASSETS & CURRENT LIABILITIES
2,026.70
1,772.58
1,521.66
998.04
811.02
836.58 761.33 715.27
510.54 471.31
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
2013 2012 2011 2010 2009
Assets
Current Liabilities
Interpretation: There is an upward trend in company’s asset. Asset is much higher than current liabilities
which is a positive sign.

28. INVESTMENT & TOTAL ASSETS
1,154.23 1,181.24
904.98
531.85
483.52
2,026.70
1,772.58
1,521.66
998.04
811.02
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
2013 2012 2011 2010 2009
Investment
Assets
Interpretation: There is an upward trend in company’s asset and investment which is a positive sign

29. RESERVE & PAID UP CAPITAL
622
513.81
390.51
268.51
158.21
424.42
353.44
271.88
187.5
150
0
100
200
300
400
500
600
700
2013 2012 2011 2010 2009
Reserve
Paid up Capital
Interpretation: There is an upward trend in company’s reserve which indicate the strengths of the
company.

30. GROSS CLAIM (CLASS WISE)
0
50
100
150
200
250
300
2013 2012 2011 2010 2009
Fire
Marine
Motor
Misc.
Interpretation: It shows that pioneer insurance company settles a substantial number of claims every year.

31. PROFIT DISTRIBUTION
127.23
85
62.43
84.83
Profit Distribution
Dividend
Provisions for tax
Balance after distribution
Reserve for exceptional loss
Interpretation: Pioneer insurance company distributes a large portion of its profit as dividend which is a good
sign for investors.

32. Ratio Analysis of PICL
Current Ratio
Quick Ratio
Cash Ratio
Working Capital Ratio
Return on Equity Ratio
Return on Capital Employed Ratio
Return on Assets Ratio
Debt-Equity Ratio
Capitalization Ratio
Operating Cash Flow Ratio

33. Name Formula Amount Ratio Comment
Current Ratio Current
Assets/Current
Liabilities
1,614,728,611/439
,890,668
3.67:1 The standard
value is 1:1.So it is
a good sign for the
company.
Quick Ratio Cash &
Equivalents+Account
s Receivable/Current
Liabilities
814,342,750+432,5
46,564/439,890,66
8
2.83:1 Quite Satisfactory
because the
company has
enough current
assets.
Cash Ratio Cash &
Equivalents/Current
Liabilities
814,342,750/439,8
90,668
1.85:1 The standard
value is 1:1.So the
company is in
better position.
Working Capital
Ratio
Working
Capital/Current
Liabilities
1,174,837943/439,
890,668
2.67:1 Satisfactory.

34. Name Formula Amount Ratio Comment
Return on Equity
Ratio
Net Income/Average
Shareholders’ Equity x
100
127,085,760/388,7
81,250 x 100
32.69% The company
needs to improve
this ratio.
Return on Capital
Employed Ratio
Net Income/Capital
Employed x 100
127,085,760/832,7
28,705 x 100
15.26% Other Insurance
Company’s
return is
higher.So needs
to improve.
Return on Assets
Ratio
Net Income/Average
Total Assets x 100
127,085,760/1,642
,833,763 x 100
7.74% This ratio needs
to be improved.

35. Name Formula Amount Ratio Comment
Debt-Equity Ratio Total
Liability/Shareho
lders’ Equity
1,706,971,434/1,2
74,793,887
1.34:1 The amount of
debt needs to be
decreased.
Capitalization
Ratio
Long Term
Debt/Long Term
Debt+Shareholde
rs’ Equity x 100
345,732,502/345,7
32,502+1,274,793,
887 x 100
21.33% It will be better
for the company
if this ratio can be
increased.
Operating Cash
Flow Ratio
Operating Cash
Flow/Revenue x
100
77,395,047/651,75
0,671 x 100
11.87% Quite
satisfactory. The
company has
enough operating
cash flow.

36. Recommendations
• PICL can introduce more subsidiary companies like Pioneer
Securities and Capital limited.
• PICL can arrange seminars for the public and as well as for the
employees so that the employees can get a proper knowledge how
to deal with customer and how to increase their network and
facility.
• PICL should increase their online facility. By this it can give and
take facilities by setting in the desk.
• PICL should improve its technological facilities and it should
reduce its paper pencil works.

37. • “Employee Recruitment Process”- should be done in a fare process so that
appropriate and talented employees are selected through the recruitment
process and increase the productivity and quality of the service.
• The most important thing that has come to my mind concerning their
promotional activities is that they should go for print or broad cast media
for advertisement to make their customer aware about their range of
services and make the strong place in the customers‟ mind.
• They should increase the number of Branches in all over the country with
the permission of IDRA (Insurance Development and Regulatory
Authority). Thus, the clients in every city can enjoy their insurance facility
from their own city.

38. Conclusion
• the competition is increasing day by day between the insurance
companies
• PICL need to develop their some productive sectors. At present, a
company cannot establish properly without developing
information technology.
• The progress of insurance business depends on the progress of
economic condition .Insurance business also faces many problem.
So if we develop economic condition as well as overcome the
problems, it will help a lot to flourish this business in our country.
• So, PICL should focus on those issues to develop its growth and
faith from its customers. Pioneer is proud to be a company that
helps people in time of trouble.

39. Annual Reports
• Annual Report of Pioneer Insurance Company Limited 2009, 2010, 2011,
2012, 2013
Websites
• http://www.pioneerinsurance.com.bd/
• http://www.inc.com/encyclopedia/financial-ratios.html
• http://www.investinganswers.com
• http://www.investopedia.com
• http://www.wikipedia.com
 Several books, journal and research paper regarding insurance operations.

40. Any Question?