WIXLIB

FROM THE DESK OF THE CHAIRMANIn spite of the adverse economic situations in 2018, the Companywas able to underwrite moderate amount of business due to earnestenthusiasm and relentless effort by all of our employees, support fromthe respected clients and the shareholders and above all, the valuableinputs and monitoring of the Board. We earned gross premium andnet premium income of Tk. 617.86 million and Tk. 322.39 millionrespectively during the year 2018. Underwriting profit stood at Tk. 98.84million in 2018 which was Tk. 98.06 million of 2017.Total assets of theCompany stood at Tk. 11227.11 million as on 31st December 2018.The Company settled claims amounting to Tk. 62.70 million during2018 which was Tk. 45.00 million in 2017. After making provision ofreserve for exceptional losses, share fluctuation fund, deferred tax andtaxation, the Board of Directors could recommend 5% Cash and 5%stock dividend. I believe, the business of the company will continue tobe increased in the years to come.Continental Insurance Limited is always concerned about protectingthe interest of all its business partner clients and stakeholders. I amconvinced that with the strength of our strong management team, thededicated and hardworking employees, our well-built IT & onlinesupport, customer service and with the support of our clients andstakeholders, we will continue on our course towards sustainable andprofitable growth. With our impressive track record, we are committedto long-term financial performance in strict compliance to regulatoryrequirements. We are very much confident that the Company is poisedto take challenges of the future.Dear Shareholders, you will be happy to note that Continental Insurance ltd.has been rated by the Alpha Credit Rating Limited as Grade “AA-” Company.Dear Shareholders, despite the stiff competition and challengingconditions in insurance industries in Bangladesh, Continental Insurancecontinued to perform strongly. In doing so, we made substantialprogress towards creating a strong and stable Company. We want toserve our clients even better in future by focusing on their needs andoffering products and services that address those needs. We expectto be successful and deliver benefit to our shareholders and to ourstakeholders at large.Dear Shareholders,Assalamu AlaikumIt is with great pleasure that I welcome you all to this 19th Annual GeneralMeeting of Continental Insurance Limited. Today, we are presenting theCompany’s Accounts for the year 2018 thus having completed 20 years ofsuccessful operations. On behalf of Board of Directors and myself, I would like toexpress my sincere thanks and profound appreciation to you for your continuinginterest in and support for your Company. It is your kind patronage and continuedsupport that have always resulted in sustainable development and progress of theCompany. Now it is my pleasure to present before you a short report about theperformance of the Company in 2018.14CONTINENTAL INSURANCE LIMITEDI take the opportunity to express my gratitude to you all, valued clients,Office of the Insurance Development & Regulatory Authority (IDRA),Ministries of Commerce and Finance, Shadharan Bima Corporation,Bangladesh Bank, all Government & Private Commercial Banks,Registrar of Joint Stock Companies & Firms, Dhaka Stock Exchange,Chittagong Stock Exchange, Bangladesh Insurance Association andall Govt. & Semi Govt. institutions as well as our patrons and wellwishers for the co-operation that I have received from them. I alsothank all of our employees for their contribution to the developmentof the Company.I hope, your co-operation and patronization will continued with us incoming days.May Almighty Allah in His infinite mercy guide us for our continuousgrowth, prosperity and well being in the days ahead. Ameen !Allah HafizWith warm Regards(A.K.M.Azizur Rahman)Chairman

FROM THE DESK OF THE VICE-CHAIRMANWe are still striving to bettered our profit and turnover inspite of highly competitive and facing adverse challenges.The financial details in the report of the Chairman on behalfof the Board of Directors depict the overall performance ofthe Company.Before I conclude, I would like to extend my sinceregratitude to all my colleagues in the Board of Directors fortheir overall support and co-operation as always. I wouldalso like to thank Regulatory authorities, valued clients, theShareholders for their continuous help and co-operation intaking our Company’s ahead. Last but not least would like toconvey my heartfelt thanks to all the employee of ContinentalInsurance Ltd. for their outstanding contribution.May Allah bestow on us his infinite mercy and guide us inall our efforts for the continuous growth, prosperity and wellbeing in the coming days.Imtiaz Bin MusaVice-ChairmanAssalamu AlaikumIt gives me immense pleasure to welcome you all at the19th Annual General Meeting of Continental InsuranceLimitedOn behalf of the Board of Directors, I would like to expressmy sincere thanks and profound appreciation to you and foryour support to the Company.With sound Corporate Governance, Management Efficiency,Accountability and Transparency the Continental InsuranceLimited is moving ahead. I strongly believe the gains so farwe have achieved during the preceding years will surelycontribute for better positioning of the Company in thefuture.15ANNUAL REPORT 2018

REVIEW OF THE CHIEF EXECUTIVE OFFICERMany business owners feel business insurance is an expense theycannot afford, or is a luxury for more established businesses.Although it is true business insurance can be expensive, it is anexpense every business, regardless of the industry, size or length oftime in existence, needs to include in its budget.Business insurance is not a luxury; it’s a necessity. Businessinsurance protects a business from closing due to a catastrophicloss. Fires, floods, hurricanes and tornadoes have been the end ofmany businesses in Bangladesh, as elsewhere. When a companycarries insurance against these types of losses, closure and loss areonly temporary instead of permanent. Companies always considerbusiness interruption insurance, a rider on their business insurancepolicy, to ensure continued cash flow for the duration of a closuredue to a natural disaster.But we still continue refining our risk management processesthrough investing time & resources to analyze and minimize therisks as a Company and firmly believe that insurers must be seenas the assuring policyholders & professional risk manager for theclients who shall meet out the claims with urgency and efficiencywhen misfortunes strikes.Assalamu AlaikumIt is my immense pleasure to welcome you to the 19thAnnual General Meeting of Continental Insurance Limited.I would like to convey my warm appreciation to all of you foryour lively support and assistance.We at CIL take pride in serving you as a company specializingin commercial insurance coverage’s. Since inception in 1999 tilldate we are leaders in commercial Insurance, CIL has continuedto emphasize quality products and services at the best rate. Ourdedication, strength, stability, and performance reflected in our“AA-” rating.Insurance is an important element of any sound financial plan.Different kinds of insurance help protect you and your wealth indifferent ways against the cost of accidents, illness, disability, anddeath.16CONTINENTAL INSURANCE LIMITEDFinally, I would like to express my sincere gratitude to the Hon’bleChairperson, all members of the board, shareholders, stakeholdersfor helping us to make 2018 a success and I am looking forward toreceiving their support and co-operation in the coming days. We arealso grateful to our beloved branch in charges and all employeesfor their dedicated hard work to achieve our corporate mission andvision. My sincere appreciation to all valued customers/clients fortheir best support during the year and looking forward to receive thesame in the coming days.We are also grateful to all regulatory authorities for their continuoussupport and guidance.May Almighty Allah and His mercy guide us for prosperity.Muhammad Nazirul IslamChief Executive Officer

CREDIT RATING & BAPLC Certificate17ANNUAL REPORT 2018

OUR PRODUCTS & SERVICESFIREEXTINGUISHERMARINE HULL INSURANCETotal Loss only (TLO)MARINE CARGO INSURANCEFIRE INSURANCEFire Insurance(Including Allied Perils)Industrial All Risk (IAR)Property Damage AllRisks (PDAR)18CONTINENTAL INSURANCE LIMITEDMarine Cargo Insurancetransit by steamer orPowered VesselMarine Cargo Insurancetransit by Rail/Lorry/TruckMarine Cargo Insurancetransit by Inland Rail or RoadMarine Cargo Insurancetransit by Inland Cargoes(Water Borne)Marine Cargo Insurancetransit by Air CargoInstitute and InlandTime Clauses Hull (ITC)

MISCELLANEOUS INSURANCEMOTOR INSURANCEENGINEERING INSURANCEMachinery Insurance(Machinery Breakdown)Deterioration of Stock (DOS)Boiler and Pressure Vessel (BPV)Electronic EquipmentInsurance (EEI)Erection’s All Risks (EAR)Contractor's All Risks (CAR)Work Plant (WP)Contractors Plant &MachineryHotel Owner All Risks (HOAR)Aviation InsuranceMotor Insurance forPrivate VehicleMotor Insurance forCommercial VehicleMotor Insurance forMiscellaneous VehicleMotor Insurance forMotor CycleBurglary and HouseBreaking InsuranceCash In Safe InsuranceCash On Counter InsuranceCash In Transit InsuranceCash In Premises InsuranceFidelity Guarantee InsuranceAll Risks InsurancePersonal Accident InsurancePersonal AccidentInsurance (Air Travel)The People’s PersonalAccident InsuranceWorkmen’s CompensationInsuranceEmployer’s LiabilityCommercial General LiabilityThird Party LiabilityPublic LiabilityComprehensive General LiabilityProduct LiabilityBusiness InterruptionOverseas Mediclaim andHoliday Insurance19ANNUAL REPORT 2018

FINANCIAL HIGHLIGHTSAnnexure–IFigure in Lac 12.34726.87450.06402.29431.02600.65Financial PerformanceGross PremiumNet PremiumGross Claim PaidNet 8.11883.95Underwriting Profit988.44980.641023.501040.711117.31Investment & FDR Income283.43321.73259.86244.99205.60Net Profit Before Tax876.29823.16755.08739.56831.98Net Profit After Tax668.54634.53571.21581.36638.80Paid-up Capital3628.583455.793291.283134.503134.50Share premium453.75453.75453.75453.75453.75Total der’s Equity8397.817791.147104.076945.746909.84Cash. FDR and Bank Balances4778.374434.694217.524037.494232.69Total Assets11227.1110831.5110232.399867.7210000.275% Cash5% Cash5% Cash5% Cash5% Stock5% Stock5% Stock5% Stock1.551.491.441.51Management ExpensesShare Capital & ReserveAssetsRatiosDividend in PercentEPS20CONTINENTAL INSURANCE LIMITED10% cash1.66

GRAPHICAL 0300200020010001000201820172016Gross Premium2015201402018Net Premium20172016Gross Claim Paid1000900800700600500400300200100020152014Net et Profit Before Tax201520142018Net Profit After Tax2017201620152014Paid-up Capital Share 00030002000200010000020182017Total Reserve20162015Shareholder’s Equity201420182017201620152014Cash. FDR and Bank Balances Total Assets21ANNUAL REPORT 2018

DIRECTORS’ REPORTTo the Shareholders for the year ended December 31, 2018Bismillahir Rahmanir Rahim,Distinguished ShareholdersAssalamu Alaikum,On behalf of the Board of Directors of ContinentalInsurance Limited I have great pleasure to welcome youto the 19th Annual General Meeting (AGM) of the Company.At the outset I would like to express my heartfelt gratitudefor your continuous support, co-operation and trust reposedon us. I am now happy to place before you the Directors’Report along with Audited Financial Statements and theAuditors’ Report for the year ended 31st December, 2018for your review and approval.Global Economic OutlookGlobal growth in 2018 is estimated to be 3.7 percent, as itwas last fall, but signs of a slowdown in the second half of2018 have led to downward revisions for several economies.Weakness in the second half of 2018 will carry over tocoming quarters, with global growth projected to decline to3.5 percent in 2019 before picking up slightly to 3.6 percentin 2020 (0.2 percentage point and 0.1 percentage pointlower, respectively, than in the previous WEO). This growthpattern reflects a persistent decline in the growth rate ofadvanced economies from above-trend levels—occurringmore rapidly than previously anticipated—together with atemporary decline in the growth rate for emerging marketand developing economies in 2019, reflecting contractions inArgentina and Turkey, as well as the impact of trade actionson China and other Asian economies.Specifically, growth in advanced economies is projected toslow from an estimated 2.3 percent in 2018 to 2.0 percentin 2019 and 1.7 percent in 2020. This estimated growth ratefor 2018 and the projection for 2019 are 0.1 percentagepoint lower than in the October 2018 WEO, mostly due todownward revisions for the euro area.According to International Monetary Fund (IMF), Globalgrowth is expected to remain at 3.0 per cent in 2019 and2020, however, the steady pace of expansion in the globaleconomy masks an increase in downside risks that couldpotentially exacerbate development challenges in many partsof the world, according to the World Economic Situation and22CONTINENTAL INSURANCE LIMITEDProspects 2019. The global economy is facing a confluenceof risks, which could severely disrupt economic activityand inflict significant damage on longer-term developmentprospects.These risks include an escalation of trade disputes,an abrupt tightening of global financial conditions, andintensifying climate risksMeanwhile ADB has made its growth forecast for developingAsian countries at 6.0 per cent in 2018 and 5.8 per centin 2019. With a projected growth rate of 7.0% and 7.2%Bangladesh falls in the category of one of the countries withhigh growth rate in 2018 and 2019.Bangladesh Economic OutlookBangladesh economy’s continued good performance, withrobust and stable growth. The strong growth comes withstable inflation, moderate public debt, and greater resilienceto external shocks. The country continues to make steadyprogress in reducing poverty and improving social indicators.The macroeconomic situation is expected to remain robustin FY2018.Driven by strong private consumption, public investmentand remittance inflows, Bangladesh’s economy expanded bya remarkable 7.86% to USD 275.8 billion in 2018, recordingthe highest growth rate in the country’s history. 2018marked a 5-year run of continuous increase in the country’sGDP growth rate, a trend that is also forecasted to continue.One of the most densely populated economies in the world,Bangladesh has continued making impressive strides inachieving social development goals for its 167 million citizens.The resilience of the country’s economy is commendable.However, sound economic policy must be implemented tomitigate underperformance of the financial sector, diversifyexports and create better employment opportunities byincreasing private investment.Bangladesh Economic GrowthThe economy is likely to grow at a robust, but slightly slower,rate this fiscal year. Private consumption should continueto be underpinned by remittance growth, while strong

government consumption and investment are also seenproviding buffers. However, risks of natural disasters, a weakglobal trade environment and a struggling domestic bankingsystem all cloud prospects. We expect GDP to expand 7.4%in FY 2019, which is unchanged from last month’s forecast,and 7.2% in FY 2020.According to Bangladesh Bureau of Statistics (BBS), theGDP growth stood at 7.28 percent in FY2016-17 and 7.86percent in FY2017-18. GDP at current market prices stoodat Tk.22,504,790 million in FY2017-18, up by 13.90 percentof the previous fiscal year. However, In the light of slowdownin global economy and other factors like increase in CPI rate,Bangladesh Bank has projected a growth rate for FY 2019at 7.8%.Financial Results of Private Non Life InsuranceCompaniesAccording to Bangladesh Insurance Association, the totalpremium income of non-life private insurance companiesincreased from Tk. 25,392.52 million in 2016 to Tk. 27,373.17million in 2017 indexing a positive growth rate of 12.66%.The growth rate of premium of non-life Insurance companiesincreased in 2017 at from 10% in 2016. The total asset ofnon-life insurance companies was Tk. 75,307.57 millionin 2017 whereas it was Tk. 67,846.62 million in 2016. Theinvestment of non-life insurance companies stood at Tk.38,550.04 million in 2017 whereas Tk. 34,016.84 million in2016. An unhealthy competition, however continued to affectthe Bangladesh insurance sector, relatively a small marketoverburdened with a large number of insurance companies.Experts believe that the Bangladesh insurance market sizecan accommodate only 10 to 12 private companies, but nowas many as 46 private companies remain operative in themarket.As a result, higher business acquisition cost and otherexpenses including operating expenses have cast a negativeimpact on the Insurance industry, as a whole.Business PerformanceNow I take the opportunity to present before you theAccounts and Auditor’s Report and Report of the Board ofDirectors of the Company for the year ended December 31,2018 as follows:The gross premium income of the Company for the year2018 was Tk. 61.79 crore which was Tk. 59.06 crore in theyear 2017. The premium income 9.55% compared to that ofprevious year. The net premium income of the year underreview was Tk. 32.23 crore which was Tk. 29.92 crore in theprevious year 2017 In Bank and other financial institutionswe have invested Tk. 37.08 crore as FDR, Tk. 2.50 crore asGovt. Bond and in share Tk. 4.54 crore as on 31st December2018. Total assets in the year 2018 stood at Tk. 112.27 crorefrom Tk. 108.32 crore in 2017BranchesThe Company is now operating its business through 44Branches spread all over the country. All Branches have beenmanned by well trained and highly experienced personnel.Most of the Branch Incharges have successful insurancecareers with proven track records.Financial HighlightsThe financial attainments of your Company during the year2018 compared to the year 2017 were highlighted below:SLParticulars201820171Gross Premium617,861,368590,565,8452Net Premium322,395,536299,192,0933Net Claim 4,1265Management Expenses (R)152,306,281117,870,0766Net Revenue Surplus98,844,53598,064,2007Interest Investment & Other income28,342,73432,173,1798Management Expenses(P/L)39,558,40547,920,8449Gross ious year’s balance11Reserve for exceptional loss32,239,55429,919,20912Provision for Taxation19,366,45418,837,27213Share fluctuation fund--14Deferred Tax1,408,00726,59615Net Profit available for distribution42,592,58142,535,64923ANNUAL REPORT 2018

DIRECTORS’ REPORTSLParticulars201816EPS17Proposed Dividend @ 10% Cashfor the year 201718Net Asset Value(NAV)19Net Asset Value per share20Net Operating Cash Flow per lass Wise Premium Income 2018Taka in LacClassGross Portfolio2018Net .15Marine Cargo1256.431185.34753.28668.23Marine 653223.952991.92Reinsurance arrangementCIL carried the reinsurance business mainly with state-ownedSadharan Birna Corporation (SBC) under class-wise treatieswhich backed the company in respect of risk management.The company is capable of writing insurance business of anydimension since the reinsurance treaties are designed in sucha way so that it can comfortably absorb high-valued projectunder reinsurance treaties and facultative method with SBC.In reinsurance business, CIL exercises surplus treaty, excessof loss treaty and facultative method.Risk and ConcernsAs an entity engaged exclusively in the business of insurance,Continental obviously has to face risks of diverse nature. Nodoubt, a good number of which are peculiar to the Insuranceindustry. It also has to counter the concerns arising out ofthe adverse developments in the industry and economicarena. These factors can be summarized as follows: strategicrisks, underwriting risks, reinsurance risks, reserving risks,investment risks, liquidity risks and socio-politico-economicrisks. The Company monitors such risks from time to time,continues to keep abreast of relevant developments andtake corrective and/or preventive measures as and whennecessary to protect its interests to the fullest extent.Risk ManagementRisk management ensures an integrated, pre-emptiveapproach to managing current and emerging threatFire 52.33%Marine Cargo 20.34%Marine Hull 2.25%Motor 14.07%Misc. 11.01%ClaimThe Company settled gross claim to the tune of Tk. 6.27crore (net claim being Tk.3.98 crore after recovery from thereinsurers) during the year 2018. This Company always usedto attach due importance on quick settlement of claim of thevalued clients.24CONTINENTAL INSURANCE LIMITEDRelated Party TransactionsContinental Insurance Limited, in normal course of business,carries out a number of transactions with other entitiesthat fall within the definition of related p

19th Annual General Meeting of Continental Insurance Limited On behalf of the Board of Directors, I would like to express my sincere thanks and profound appreciation to you and for your support to the Company. With sound Corporate Governance, Management Efficiency, Accountability and Transparency the Continental Insurance Limited is moving ahead.