Dear valued Shareholders,

Assalamu Alaikum,

Over a period of more than 26 years, your Green Delta Insurance Company has been able to establish a benchmark in the industry for its sustained business growth and strong corporate governance practices. Every year GDIC receives the accolades and recognitions from both locally and globally. We attribute our success to our adherence to our core strategies and outstanding execution by our talented employees. Though we sometime offer many sophisticated & complex services and products, our strategies remain basic and direct. 2011 was an exceptionally difficult year for GDIC and, in particular, for our investors, customers and employees. The continuation of extreme dislocation in international economic arena - international recession and rapid deterioration in credit conditions and asset prices – have had an trickle down affect to the economy of Bangladesh at last. After a long speculation of exposing towards the global recession – the country‘s economy has faced the heat in the form of bearish capital market, increased inflation and interest rates, liquidity crisis, credit crunch and last but not the least decreased remittance flow. Accordingly the recessionary pressure had its impact on the financial sector and insurance industry as well. The industry had to cope with the twin impact of the general economic slowdown and the pricing war under the backdrop of regulatory intervention for better governance.

These circumstances which have had such an adverse impact on our shareholders are very much regretted. The Board and management are determined that GDIC will recover from its present predicament and that the learning’s from this most difficult experience are thoroughly embedded and acted upon.

During the year 2011 GDIC has delivered consecutive growth by achieving a record 17.50% increase in gross premium to BDT 2351.47 million. The underwriting profit stands at BDT 124.17 million with a growth of 24.50% compared to last year 2010. However, some of the other parameters like Shareholders equity went down by 19.27% due reduction in the reserve in share price fluctuation fund and stands at BDT 2485.30 million; Profit before tax stands at BDT 134.01 million as the return from the capital market investment went down significantly compared to the year 2010;

The Company is quite proud to be the insurer of a number of prestigious corporations in the field of Energy, Manufacturing, Transportation and Trading. It is a matter of great satisfaction for us to note that the Company has established itself as a risk carrier of repute and introduced innovative insurance products in the market to meet the changing requirements of the clients.

Reviewing the results of the company‘s operation and its financial position, one can notice the considerable growth of the asset base and shareholders equity of the Company over a period of time. The asset and reserve base of the Company is strong enough to meet current liabilities and anycontingent liabilities that may arise in future.

While there has been much speculation in many organizations regarding what went wrong, GDIC has continued to be a satisfactory performer. Building diverse revenues has been a key element to our strategy. Our particular combination of selecting strong businesses to underwrite and portfolio diversifications helps produce relatively consistent earnings through economic cycles.

A balanced strategy requires discipline. Our pace of expansion has been measured. The result is controlled growth through moderate branching and opportunistic acquisitions. During the years prior to the recession when the economy was growing rapidly, when other were focusing only on the core business, GDIC has invested in information technology, fixed assets and other business ventures – which will definitely add to the sustainability of the income stream of the company. Yes, the results may not be readily available but we know for sure that the strategies to click as soon as the economy returns to a better shape.

 
Another key element of our strategy is our focus on talent. The best strategies are of little value, if you lack the talent to successfully execute. We have continued to recruit great talent over the years, and last year, took advantage of the disruption in the industry to add depth and expertise throughout the organization.

 
While we are not immune to the affects of the turbulent economy, we move quickly to identify and address potential problems, and work closely with customers to resolve issues. We are confident our approach to dealing with the economic realities will help us emerge from the economic problems earlier than the industry as a whole, and better positioned to fuel future economic growth.

Much of the effort of the Board and management of Green Delta Insurance over the past year has been concentrated on effectively progressing and implementing a series of major initiatives. We have supplemented our capital, improved our funding, diversified investment and reduced our costs. These initiatives will continue.

We cannot comment / forecast confidently on the position in the insurance sector or the economy of the country in general, but we can give the assurance that GDIC is committed to supporting our current and future customers responsibly through these challenging times.

As we make progress on these goals we would like to acknowledge the ongoing support of the many parts of the stakeholders with which we interact, the unstinting commitment of our employees, the support of our customers and the understanding of our investors for whom our promise is to rebuild shareholder value.

We thank all the Directors for their commitment to ensuring the sustainability of the company in these very difficult times and to positioning it for recovery.

We also seize this opportunity to thank Almighty for his mercy and pray to Him to give us perseverance and strength to make further growth thereby meeting the ambitious targets being set by the shareholders, customers, business associates and suppliers.


Warm Regards,