As a whole 2010 was a challenging and to some extent turbulent year for the economy, the capital markets and the financial services industry. The year began with ongoing market declines, extensive government intervention in the financial system and broad-based consumer anxiety, and it ended with liquidity crisis & increased interest rates.

At GDIC, we guided the company through this challenging period with the same prudent approach that has served us well for the last 26 years. We have built a resilient and diverse business, and our enduring strength enabled us to remain focused on helping our clients navigate the impact of the global recession. While other companies retrenched, we captured opportunities, including investment in human capital, technology and assets that will accelerate our potential for growth and further differentiate your company. While significant economic headwinds remain, we have a clear vision of what we want to achieve, and we are confident that we have the right people, strategy and business model to realize our full potential.

Generating satisfactory results in a difficult year

According to the International Monetary Fund in its World Economic Outlook observed thus: "The global economic expansion is grinding to a halt". Bangladesh is of no exception. Though the GDP has increased during 2011, the global economic slowdown has most likely to had a negative impact on the country’s both financial and industrial sector.

Despite the above gloomy situation, the insurance sector in the country has moved ahead. The top line continued to grow in 2011. We are pleased with our progress and optimistic that we can accelerate the momentum in our business. We can proudly confirm that with the right strategic guidelines and timely executions of the plans, Green Delta Insurance Company has acceptable overcome the hurdles during the year 2011.

We expected and forecasted in 2009 - 2011 that the global economic situation is not expected to stabilize even in 2011-2012. Rather would create a very challenging environment for financial services providers in the coming days.

In line with that, the insurance industry overall remained highly competitive.

However, for the year 2011, we are pleased to report

However due to recent downtrend in capital market for the last one and half years GDIC has a sharp decline on the investment return from its capital market investment. Because of the same reason the bottom / profit went down significantly and the related parameters have negative trend.

Despite the above, GDIC during the year 2010 and 2011, GDIC has made significant investment on the following that are expected to result in substantial investment return and cost reduction in near future:

• Investment in Green Delta Aims tower – a joint venture 17 storied landmark building at Mohakhali, Dhaka has been constructed entirely from own cashflow. The head office of GDIC shall relocate to the this new premises within first quarter of 2012. This will help GDIC in reducing the rental expenses by huge margin.

• Investment in Merchant Banking subsidiary – Green Delta LR Financial Services Ltd. a direct subsidiary of Green Delta Insurance Co. Ltd. engaged in full fledged merchant banking business. The Entity has already generated a positive bottom line of BDT 0.37 crore in its very 1st year of operation. In the coming days the merchant bank is expected to generate more revenue and uphold the image both locally and globally.

• Investment in Fixed assets -- GDIC has recently purchased two (02) commercial floor

spaces in Dhaka city. In one premises out of the two, a branch has been opened and the other one under construction progress.

• Investment in Financial advisory firm – As a part of investment diversification GDIC has taken equity position in a financial advisory firms of the country. The firm has a scope of doing advisory businesses, trainings, workshops and so on for the capacity development of the financial market players in the country. This firm, given the right leadership, has the potentiality to generate revenue in the future.

Our business is built on the personal, long-term relationships that clients form with their financial advisors. Through our Think > Plan > Track > approach to financial planning, we start by gaining a complete understanding of clients individual goals and dreams, and then offer advice to each client. As conditions changed and life events occur, our entire management worked closely with clients to assess their needs and adjust financial plans accordingly.

This personal connection and long-term focus differentiates GDIC from our competitors and defines our position in the marketplace. While the financial crisis drove many investors to consider changing their financial services provider, we can report that our client and advisor satisfaction and retention rates remained strong, and we grew our core client base — the mass affluent and affluent.

Serving clients in long-term, comprehensive relationships requires road and diverse product choice.We have recently created a department for product development and research in this regards.

This allows us to serve our clients’ needs over time, deepening relationships as we strive to grow and protect client assets through market cycles. Our diversified and integrated business model also benefits shareholders, as we balance distribution, asset management, insurance and annuity capabilities to provide important revenue and earnings diversity.

We see significant potential to explore online, direct-to-consumer approach with sales through reinforcing our strong financial foundation. Our ability to navigate a challenging economic environment and to capture opportunities originates from our strong capital position, effective risk management and commitment to expense management. Each is critically important, and when combined, they create a significant competitive advantage.

We are committed to maintaining a strong capital position — while allocating discretionary capital to business growth and acquisition opportunities, and returning capital to shareholders. Our capital allocation decisions are based on the following approach: first, investing in the business to capture attractive returns; second, pursuing strategically and financially attractive acquisitions; and third, returning capital to you, our shareholders, in the form of dividends, distributions and share

repurchases.

Our risk management framework extends beyond maintaining strong balance sheet fundamentals. We kept on continuous capacity building training of our underwriters so that good businesses are undertaken to maximize return at minimum cost. For example, as market depreciation and volatility increased the company’s potential liability related to variable annuities with living benefits, we revamped our product features and pricing to balance client needs and achieve shareholder return targets.

Today, your Green Delta Insurance Company Ltd. is a market leader in many aspects of the businesses, and we have continued to invest to strengthen their position in the industry in a sustainable manner. We know that the comparative performance of your company has not been very praiseworthy for the year 2011 because of several legitimate reasons; we are committed that our core business – insurance will continue to grow in future. Furthermore, our investment in the capital market to reap benefit if the market stabilizes; investments in the fixed assets to grow last but not the least more revenue to come from the direct subsidiaries. No matter what, we will continue to

• Be Client focused

• Practice and promote Integrity always

• Excellence in all we do

• Uphold the respect for individuals and communities

We would like to thank our ever supportive clients, the many individuals and institutions who has continue to keep faith on us and giving us the privilege to serve them. As always, we will continue to stand behind you. We believe, the actions we have taken so far to strengthen our position reflects the long-term commitment we make to you.

We are ever grateful to all our regulatory bodies especially Insurance Development and Regulatory Authority, Securities and Exchange Commission, Dhaka Stock Exchange Ltd., Chittagong Stock Exchange Ltd. Bangladesh Bank, Central Depository of Bangladesh Ltd. for their continues support and guidance.

As we reflect on the extraordinary challenges that we have overcome, we are grateful for the dedicated and thoughtful work of our employees. Your Green Delta Insurance Company Ltd. has emerged from this difficult time in a stronger competitive position thanks to their efforts.

We are deeply indebted to our honourable Board of Directors who have been supporting and guiding us with prudent knowledge, experience and vision for the last 26 years.

Finally, we know that these times have been equally trying for our shareholders, so, on behalf of your fellow directors and employees, we would like to thank you for your perseverance and confidence. We will continue to do all we can to reward your trust.

Sincerely,

Managing Director and CEO