Bangladesh General Insurance Company Ltd (BGIC) the first ever general insurance company in Bangladesh to come up in the private sector under the scheme offered by the government of Bangladesh by virtue of the Insurance (Amendment) Ordinance 1984, and the Insurance Corporations (Amendment) Ordinance 1984. BGIC was incorporated as a public limited company under the companies act 1913 and started business on 29 July 1985 with an authorised capital of Tk 100 million divided into 1,000,000 ordinary shares of Tk 100 each. Its initial paid up capital was Tk 30 million, which rose to Tk 72 million in 1999. In May 1989, the company offered Tk 30 million for public subscription. It is listed with both Dhaka and Chittagong stock exchanges. In December 1999, the number of shareholders of the company was 4,370, who held 720,000 shares.

The company was established for carrying out all types of general insurance business. It underwrites risks involved in trade and properties and thus provides their security through insurance and reinsurance services. The major risk underwriting business of the company covers fire insurance, marine insurance, motor insurance and miscellaneous areas.

By virtue of its progressive business practices as well as financial performance, BGIC has become one of the first-grade insurance companies in the country. The gross and net premium income of the company has increased consistently each year. Its net premium went up from Tk 3.21 million in 1985 to Tk 92.22 million in 1999. The net claims settled by the company amounted to Tk 2,620 only in 1985 and stood at Tk 21.42 million in December 1999. The company earned underwriting profits and pre-tax profits of Tk 1.02 million and Tk 0.84 million respectively in 1985 and Tk 70.8 million and Tk 12.28 million in 1999. A significant amount of the investment income of BGIC is derived from its investment portfolio consisting of Pratirakkha Sanchaya Patra (Defense Savings Certificate) and shares and debentures.

Total assets of the BGIC have enhanced from Tk 38.62 million in 1985 to Tk 443.91 million in 1999, when its total reserves were Tk 1,138.5 million, of which Tk 96.61 million was maintained as reserve for exceptional losses. The company paid dividend at the rate of Tk 15 per ordinary share in 1999.

BGIC has its headquarters at dhaka and has 21 zonal and branch offices (31 December 1999) at different important district towns throughout the country. Its management team is headed by the managing director, who is also the member secretary of the organisation's 16-member board of directors.

[S M Mahfuzur Rahman]