At the outset, on behalf of the Board of Directors and as the Founder Chairman of Nitol Insurance PLC. (NIPLC.), I extend my heartfelt welcome to all valued shareholders and stakeholders to the 27th Annual General Meeting of the Company.

I express my sincere gratitude for your unwavering trust, confidence, and continued support, which remain a constant source of inspiration for us in our pursuit of a sustainable and resilient future.

Bangladesh's economy in 2025 experienced a challenging and slow-growth environment, with GDP growth projected at approximately 3.9%-4.0% for FY 2025 (ending June 2025). This slowdown, compared to previous years, was driven by high inflation, weak domestic demand, industrial unrest, and political transition. However, economic growth is expected to recover modestly to around 4.9%-5.1% in 2026.

Despite the instability prevailing in the non-life insurance market, I am pleased to inform you that your Company, while maintaining full compliance with all applicable rules and regulations, underwrote a gross premium of Tk. 705.16 million during the year, compared to Tk. 632.32 million in 2024, reflecting a growth of 11.52%. This achievement was accomplished despite adverse global and domestic challenges, including political unrest and ongoing geopolitical conflicts in Europe and the Middle East.

NIPLC is now capable of underwriting larger and more complex risks in collaboration with globally reputed reinsurers. As part of our prudent risk management strategy, we continue to transfer adequate portions of risk to the state-owned reinsurer, Sadharan Bima Corporation (SBC), as well as internationally rated overseas reinsurers.

The strategic objectives of NIPLC are broadly categorized into three areas:
(i) Process Focus;
(ii) Business Focus and
(iii) People/Learning Focus
Each strategic objective is supported by measurable performance indicators. The Company evaluates its performance through key performance indicators

• Policy rates
• Precise underwriting and risk management
• Customer acquisition cost
• Claim settlement ratio
• Loss ratio
• Combined ratio
• Customer retention rate
• Average revenue per customer (ARPC)
• Profitability ratio
• Expense ratio

These KPIs enable management to assess operational efficiency and strategic progress effectively.

Directors' Role in Achieving NIPLC.'s Objectives

The Board of Directors remains responsible for ensuring the overall performance and sustainable growth of the Company for the benefit of its honorable shareholders. The Management, led by the Chief Executive Officer (CEO), performs its responsibilities within a clearly defined framework approved by the Board. Various Board Sub-Committees regularly monitor operational and strategic activities and provide necessary guidance and recommendations to Management through the CEO.

The Board also reviews the activities of the sub-committees on a regular basis to ensure effective governance, accountability, and performance management throughout the organization.

Evaluation of the Performance of the Board, Sub-Committees, and Board Members

Accountability is a core principle of corporate governance, and accordingly, the Board of Directors remains accountable to its respected shareholders. The attendance and participation of Directors in Board and Sub-Committee meetings are duly recorded and evaluated. Their contributions and effectiveness in deliberations are also considered carefully. The Company has also implemented a Code of Conduct governing the roles and responsibilities of the Chairperson, Board Members, and the CEO.

To strengthen governance practices, the following committees are actively functioning:
• Audit Committee
• Nomination and Remuneration Committee (NRC)
• Investment Committee
• Risk Management Committee
• Policyholder Protection and Compliance Committee

The Independent Directors are governed in accordance with the Corporate Governance Code issued by the Bangladesh Securities and Exchange Commission (BSEC) and the applicable Insurers' Corporate Governance Guidelines.

NIPLC is also in the process of further enhancing its Board evaluation framework, including the assessment of the performance of Board Members and Sub-Committee members.

Appropriation of Profit

You will be pleased to know that NIPLC commenced operations with an initial capital of Tk. 60 million and subsequently raised an additional Tk. 90 million from the capital market, resulting in a total paid-up capital of Tk. 150 million. Through prudent business operations and the continuous support of our shareholders, the Company has gradually increased its paid-up capital to Tk. 422.18 million.

NIPLC has consistently maintained a commendable track record in distributing cash dividends to its shareholders. Accordingly, from the divisible profits of 2025, the Board of Directors has recommended a 10% cash dividend for approval at the 27th Annual General Meeting. Furthermore, to strengthen the Company's General Reserve against future uncertainties and ensure sustainable dividend payments, an amount of Tk. 40,023,655 has been transferred to the General Reserve.

Insurance Business in Rural and Social Sectors

NIPLC continues to expand insurance coverage in rural and social sectors by underwriting risks associated with small and medium enterprises (SMEs) through its extensive branch network across remote areas of the country, as well as through bancassurance channels.

Insurance Development and Regulatory Authority (IDRA)

The Insurance Development and Regulatory Authority (IDRA) continues to play a proactive role in strengthening the insurance industry. The Authority has recently issued important regulations, including the long-awaited Solvency Margin Regulations along with the relevant Gazette Notification for implementation, applicable to both life and non-life insurers.

Bangladesh Insurance Association (BIA)

The Executive Committee of the Bangladesh Insurance Association (BIA) has recently been reconstituted. We are optimistic that the new leadership will take effective initiatives to address the longstanding challenges facing the insurance industry.

Sadharan Bima Corporation (SBC)

Sadharan Bima Corporation (SBC), as the sole state-owned non-life insurer and reinsurer for private sector insurers in Bangladesh, plays a vital role in the country's insurance industry.

NIPLC pays a substantial amount of reinsurance premium to SBC annually under treaty arrangements and also places facultative risks with SBC whenever required. The Company remains committed to maintaining all accounts with SBC in an updated and satisfactory position.

Central Rating Committee (CRC)

The Central Rating Committee (CRC), headed by the Chairman of IDRA under Section 17 of the Insurance Act, 2010, determines premium rates for non-life insurance business in consultation with the industry stakeholders. NIPLC highly appreciates the positive initiatives undertaken by the Authority in maintaining discipline and fairness in premium rates within the insurance sector.

Capital Market Stabilization Fund (CMSF)

The Capital Market Stabilization Fund (CMSF), established by BSEC using unclaimed dividends and other undistributed funds of listed companies, has contributed positively toward strengthening the capital market. In compliance with the applicable regulations, NIPLC regularly transfers unclaimed dividends to the CMSF as required.

Research and Development

Developing innovative non-life insurance products remains challenging in the absence of a comprehensive insurance database in Bangladesh. Nevertheless, with its skilled and professional underwriting team, NIPLC continues to pursue product innovation, particularly in the area of personal lines business.

The Company is actively exploring emerging insurance segments such as:
• Cyber Liability Insurance
• Pollution Legal Liability Insurance
• Area Yield Crop Insurance
• Commercial and Industrial Drones
These products represent emerging risks and growth opportunities in the evolving global risk landscape.

These initiatives align with the Company's long-term diversification strategy and its commitment to expanding insurance awareness and financial inclusion across broader segments of society. In terms of marketing philosophy, we believe that good marketing makes a company look smart, while great marketing makes customers feel smart.

Digital Insurance Service

Since its inception, Nitol Insurance PLC. has been a pioneer in implementing an innovative, fully computerized business system. In line with our commitment to digital transformation, we introduced online insurance (Digital Insurance Services) in 2018. Today, 100% of our internal office operations are fully automated. Furthermore, our 24/7 online client support ensures streamlined, round-the-clock service, enabling us to settle insurance claims significantly faster than traditional manual processes

Human Capital

NIPLC strongly emphasizes operational excellence through a highly qualified and dedicated workforce across all departments and branch offices. Human resource development remains one of our strategic priorities to ensure superior customer service and sustainable organizational growth.

We regularly invest in training programs, workshops, seminars, and field-level learning initiatives to enhance professionalism and technical expertise among our employees.

Core Competency of HR Department: i) People first; by looking after our own people, client success follows naturally. ii) Owners' Mindset; empowering people to feel a sense of purpose - and get satisfying results. Positive Attitude; we believe employees should be proud of where they work. No Limits; striving every day to do exceptional things.

The Company also promotes a strong corporate culture supported by appropriate recognition and reward systems, which contribute significantly to employee satisfaction and reduced turnover.

Outlook for 2026

In 2026, Bangladesh continues to face several economic challenges, including high inflation, global geopolitical instability, rising costs, high levels of non-performing loans (NPLs) in the banking sector, weak capital markets, balance of payments pressures, and significant depreciation of the Bangladeshi Taka.

However, the newly formed government has initiated various reform measures aimed at addressing these challenges and strengthening institutional capacity with a long-term development perspective. We remain optimistic that these reforms will gradually contribute to economic stability and sustainable growth.

Conclusion

We express our sincere gratitude to our valued policyholders and shareholders for their continued trust, confidence, and support toward NIPLC. I would like to reiterate that good marketing makes the company look smart, great marketing makes the customer feel smart.

We also extend our appreciation to the banks and financial institutions with whom we maintain regular business relationships, as well as to the regulators and stakeholders, including: IDRA, Dhaka Stock Exchange, Chattogram Stock Exchange, BSEC, BIA, SBC, Bangladesh Bank, National Board of Revenue (NBR), Financial Reporting Council (FRC), relevant government authorities for their continued cooperation and support.

I would also like to convey my heartfelt thanks to the honorable members of the Board of Directors and the various Board Sub-Committees for their valuable guidance and cooperation in ensuring smooth governance and effective management of the Company.

On behalf of the Board, I sincerely thank the Chief Executive Officer and all employees of the Company for their dedication, professionalism, and relentless efforts in achieving the Company's goals.

I remain confident that, with their continued commitment and the support of all stakeholders, NIPLC will continue to grow and strengthen its position as one of the leading non-life insurance companies in Bangladesh.

May Almighty Allah (SWT) protect us and guide us toward a prosperous future. Ameen.





Thank you all.

A K M Monirul Hoque
Chairman