Eastern Insurance financial analysis: qualified 2025 audit with 10 basis paragraphs (Oct 2026)

Investment considerations: qualified 2025 audit with 10 basis paragraphs; EPS Tk 2.87; investment and other income 95.6% of pre-tax profit

What it is. Eastern Insurance PLC (DSE: EASTERNINS), formerly Eastern Insurance Company Limited, was incorporated on June 7, 1986 and writes non-life insurance through 30 branches from its registered office at 44 Dilkusha C/A, Dhaka [1 p.29]. Its subsidiary, EIC Securities Ltd., is a member of the Chittagong Stock Exchange [1 p.29]. DSE approved the new name 'Eastern Insurance PLC.' with effect from December 18, 2025 [12]. It has 43,110,144 shares of Tk 10 [1 p.36]. The latest annual accounts cover the calendar year to 31 December 2025: the statement of financial position is 'As at December 31, 2025' and the notes give the reporting period as '1 January to 31 December 2025' [1 p.17] [1 p.35].

Where it stands. Gross premium was Tk 456.7m in 2025, including public-sector business of Tk 108.8m; after Tk 253.0m of reinsurance ceded, net premium was Tk 203.7m [1 p.33] [1 p.45]. Gross premium was 24.6% above the Tk 366.5m printed for 2024 and net premium 55.4% above Tk 131.1m [3 p.72] [2 p.87] [1 p.22] [16]. Underwriting profit was Tk 34.6m against a loss of Tk 1.5m in 2024 [1 p.19]. Interest, dividend and other income was Tk 152.7m, and company profit after tax Tk 123.9m (EPS Tk 2.87) against Tk 103.9m (Tk 2.41) [1 p.19]. DSE-announced nine-month 2026 EPS was Tk 2.86 against Tk 2.77 [12]. The shares closed at Tk 56.3 on 29-Oct-2026, against Tk 50.1 on 29-Oct-2025 [11] [16].

What drives shareholder returns. On the 2025 company accounts, underwriting profit was Tk 34.6m and interest, dividend and other income Tk 152.7m, against Tk 27.6m of management expenses charged to profit and loss; pre-tax profit was Tk 161.0m [1 p.19]. Investment and other income was 95.6% of pre-tax profit and underwriting profit 21.5% [16]. Interest on FDR and STD accounts was Tk 123.1m, interest on treasury bonds Tk 24.2m and cash dividends Tk 5.4m [1 p.44]. Return on average printed equity was 6.0% in 2025; across 2021-2025 it ranged from 4.1% (2023) to 11.1% (2021) [16]. The board recommended a 15% cash dividend (Tk 1.50 a share) for 2025, 52.3% of company EPS [12] [16].

• Recovery of the Tk 263.9m of FDRs in the five banks named by the auditor. Signpost: the FY2026 cash note and auditor's report (board meeting inferred 28-30 April 2027; no date notified).
• Agency commission after 1-Jan-2026. Signpost: the agency-commission line in the FY2026 revenue accounts; the H1 2026 statements show one 'Commission & Expenses' line of Tk 70.1m against Tk 90.3m.
• Claims records. Signpost: whether the FY2026 auditor repeats basis paragraph 4 on the claims ledger and the Tk 4.1m negative net claims.
• Share portfolio values. Signpost: note 14 cost and market value in the FY2026 accounts against the auditor's 2025 recalculation.
• Consolidation of EIC Securities Ltd. Signpost: whether the FY2026 consolidated statements recognise goodwill and non-controlling interest (basis paragraph 1).

Business: fire 42.2% of 2025 gross premium, marine cargo 33.4%, miscellaneous 12.8%, motor 10.3%, hull 1.2%

How it makes money. A Bangladeshi general insurer collects premium, cedes part of each risk to reinsurers (who pay a commission back), holds a reserve for the unexpired part of each policy, and pays claims, agency commission and management expenses from the rest. Eastern creates the unexpired-risk provision 'at the rate of 40% on all classes of business, except for Marine Hull, for which the provision has been made at 100%' [1 p.33]. The four class revenue accounts add up to the underwriting profit, and investment income less unallocated expenses gives pre-tax profit [1 p.19]. Public-sector business 'up to 31 December 2025 has been accounted for based on statements received from Sadharan Bima Corporation' [1 p.34].

Classes. Fire wrote Tk 192.9m of gross premium in 2025, 42.2% of the total, and kept 55.8% after reinsurance [1 p.45] [16]. Marine cargo wrote Tk 152.7m (33.4%) and kept 24.1%; marine hull wrote Tk 5.7m and kept 74.5% [1 p.45] [16]. Miscellaneous wrote Tk 58.5m (12.8%) and kept 16.8%, and motor wrote Tk 46.9m (10.3%) and kept 96.4% [1 p.45] [16]. Management expenses of Tk 112.5m were spread across classes; the policy note states they were allocated 'in proportion to their respective gross premium income' and also gives fixed shares 'based on management decision as follows: 42% to Fire, 33% to Marine Cargo, 1% to Marine Hull, 10% to Motor, and 13% to Miscellaneous' [1 p.33]. The class split in note 25 equals 24.6% of each class's gross premium (our arithmetic) [1 p.45] [16].

Ten years of premium. Gross premium rose from Tk 393.4m in 2016 to a high of Tk 592.8m in 2021, then fell to Tk 495.9m in 2022, Tk 368.8m in 2023 and Tk 366.5m in 2024, before Tk 456.7m in 2025 [3 p.72] [2 p.87] [1 p.45]. Across the ten years the lowest gross premium was Tk 366.50m (2024) and the highest Tk 592.81m (2021) [16]. Net premium followed the same path: highest Tk 311.12m (2021), lowest Tk 131.13m (2024) [3 p.72] [2 p.87]. Retention ranged from 35.8% (2024) to 56.3% (2020) [16]. The filings do not give a reason for the 2022-2024 decline in gross premium.

Reinsurance and SBC. Premium ceded was Tk 253.0m in 2025, 55.4% of gross premium, and reinsurance commission was Tk 25.3m, 10.0% of the premium ceded [1 p.45] [1 p.22] [16]. The policy note describes 'the reinsurance premium payable to Sadharan Bima Corporation' [1 p.32]. At end-2025 the company carried Tk 114.0m due from, and Tk 125.0m due to, other persons or bodies carrying on insurance business [1 p.18] [1 p.17]. The auditor's sixth emphasis-of-matter paragraph states that these amounts 'are related to outstanding position between the company and Sadharan Bima Corporation (SCB)' and that 'we did not get quarterly reports from them' [1 p.8].

Customers and related parties. Note 32 lists insurance business with two named related parties: 'Uttara Group of Companies' (Insurance, Tk 35,875,362) and 'M/S Rahim Steel Mills Limited' (Insurance, Tk 23,679,167) [1 p.47]. Together these are 13.0% of 2025 gross premium (our arithmetic; the note does not say whether the amounts are gross premium) [16]. The same table shows 'Sunman Group of Companies' (Insurance) and 'Uttara Motors Ltd' (For Car purchases) at Nil [1 p.47].

Underwriting: 2025 profit Tk 34.6m after a Tk 1.5m loss; net claims a Tk 4.1m credit; expense ratio 70.1% of net premium

Claims. The consolidated revenue account shows 'Claim under policies less Re-Insurance' of minus Tk 4,069,994 in 2025 against Tk 28,236,444 in 2024 [1 p.22]. It is built from Tk 23.3m paid during the year, plus Tk 60.1m outstanding at the end of the year, less Tk 87.5m outstanding at the start [1 p.22] [1 p.37]. Outstanding claims fell in every class: fire from Tk 48.95m to Tk 45.93m, marine from Tk 24.08m to Tk 7.52m, motor from Tk 11.98m to Tk 6.22m and miscellaneous from Tk 2.44m to Tk 0.42m [1 p.37]. The auditor's fourth basis paragraph states that 'Claims raised during the year were recorded as a negative figure of Tk. (4,069,994)' and that 'We did not find details ledger for claims payable' [1 p.4].

Paid claims and the auditor's figures. Note 24 gives 2025 claims paid by class: fire Tk 18.18m, marine cargo Tk 0.51m, marine hull Tk 0.18m, motor Tk 4.16m and miscellaneous Tk 0.27m, total Tk 23.30m [1 p.44]. The auditor states that 'the underlying summary provided by the Company indicated a gross claim payment of Tk. 83,389,423 and reinsurance recoveries of Tk. 61,943,007, resulting in a calculated net payment of Tk. 21,446,416 which does not reconcile with the financial statements' [1 p.5]. The two figures differ by Tk 1.85m (our arithmetic) [16]. The 2024 key-data table prints 2024 net claims of Tk 57.71m, which equals the 2024 claims paid in note 24; the 2025 revenue account prints 2024 net claims of Tk 28.24m [2 p.87] [1 p.44] [1 p.22]. Both are shown in this note and the difference is flagged.

By class. Fire moved from a loss of Tk 20.3m in 2024 to a profit of Tk 5.4m in 2025, with fire net premium of Tk 107.7m against Tk 50.3m and fire net claims of Tk 15.2m against Tk 23.6m [1 p.23] [1 p.45]. Marine made Tk 11.9m against Tk 12.8m; marine net claims were a credit of Tk 15.9m as marine outstanding claims fell by Tk 16.6m [1 p.24] [1 p.37]. Motor made Tk 18.0m against Tk 9.0m on net premium of Tk 45.2m against Tk 18.7m [1 p.25]. Miscellaneous lost Tk 0.7m against Tk 3.1m [1 p.26]. The 2024 column of the miscellaneous revenue account does not balance as printed (Tk 25.29m on one side, Tk 43.65m on the other) and prints 2024 miscellaneous net premium of Tk 30.80m, against Tk 7.16m in note 26 [1 p.26] [1 p.45]; we flag the conflict and use note 26 and the consolidated revenue account for totals.

Expenses. Management expenses charged to the revenue accounts were Tk 112.5m in 2025 against Tk 85.9m (+31.0%) [1 p.22]. The policy note gives them as 'approximately 24.63% of the gross premium of BDT 456,724,746' [1 p.33]. Agency commission was Tk 52.2m, 11.4% of gross premium, against Tk 39.8m, and insurance stamps were Tk 3.5m against Tk 2.0m [1 p.22] [16]. A further Tk 27.6m of management expenses sits in the profit and loss account, of which depreciation is Tk 18.2m [1 p.19]. The 2025 accounts contain no statement comparing management expenses with the IDRA limit, and the auditor's report contains no paragraph on it [1 p.33] [1 p.3] [1 p.8].

Combined ratio. We use one definition for Eastern and each peer: net claims plus management expenses (including insurance stamps) plus agency commission, less reinsurance commission including profit commission, over net premium. Eastern prints stamps as a separate line (Tk 3.49m) and we add it to management expenses. On that basis the combined ratio was 68.1% in 2025 and 104.2% in 2024 [16]. The claims ratio was minus 2.0% against 21.5%; the expense ratio was 70.1% against 82.7% [16]. The 2024 annual report prints its own 'Combined ratio' of 124.10% for 2024 without a definition [2 p.87]. The definition differs from the underwriting margin, which also includes the change in the unexpired-risk reserve: the reserve rose from Tk 53.8m to Tk 84.0m in 2025 [1 p.22]. Underwriting profit was 17.0% of net premium in 2025 [16].

Investments: Tk 1,204.3m of FDRs in 46 banks; shares at Tk 302.9m market value against Tk 401.8m cost

The book. At end-2025 the company held fixed deposits of Tk 1,204.3m, STD balances of Tk 17.4m, CD balances of Tk 2.1m and cash in hand of Tk 4.1m [1 p.18] [1 p.43]. The auditor describes the FDRs as 'spread across 563 accounts in 46 different banks' [1 p.6]. Treasury bonds, shown as 'Statutory deposits-Investment in Bangladesh Govt. Treasury Bond (BGTB)', were Tk 219.6m against Tk 187.4m [1 p.18]; the interest policy note refers to a 'statutory investment of BDT 25,000,000, held with Bangladesh Bank' [1 p.33]. Shares and debentures were carried at Tk 302.9m, and the investment in EIC Securities Ltd. at Tk 216.9m (share capital Tk 10.0m plus share premium Tk 206.9m) [1 p.18] [1 p.42].

Income. Interest on FDR and STD accounts was Tk 123.1m in 2025 against Tk 134.7m, interest on treasury bonds Tk 24.2m against Tk 14.8m, and cash dividends Tk 5.4m against Tk 16.9m; the total of Tk 152.7m compares with Tk 166.3m [1 p.44]. Gains on sale of shares were Tk 0.77m [1 p.44]. The tax computation lists 'Cash Dividend 4,936,419', against Tk 5,436,419 in note 22 [1 p.38] [1 p.44]. Interest accrued on FDRs rose from Tk 49.0m to Tk 61.3m [1 p.42]. The auditor's eighth basis paragraph states that interest income and receivables of Tk 15,851,317 from the five named banks are overstated by that amount [1 p.6].

FDRs in five named banks. The auditor states: 'the Company has invested Tk. 263,941,484 in five distressed Banks (Union Bank Ltd., Exim Bank Plc., First Security Islami Bank, Global Islami Bank, and Social Islami Bank)' and 'Management has not recognized any impairment loss or provision' [1 p.6]. That is 21.9% of FDRs and 12.8% of shareholders' equity (our arithmetic) [16]. The company's FDR list (Annexure E) names Exim Bank Ltd, First Security Bank Ltd and Global Islami Bank Ltd among the depositing banks [1 p.49]; the scanned list's amounts are not legible in the text layer and we do not attribute amounts to individual banks.

Holdings. Note 14.01 lists holdings by sector with columns 'M.P.(P.S) 31.12.2025', 'No of shares', 'Ave. Buying Rate', 'Total Value at Cost' and 'Market Value 31.12.2025' [1 p.40]. Checked against the full table, the largest holding by market value is National Housing Finance and Investments (5,135,973 shares; cost Tk 45,056,202; market value Tk 115,559,393), 38.2% of the portfolio's market value; the largest by cost is Standard Bank PLC (4,814,086 shares; cost Tk 51,061,184; market value Tk 23,589,021) [1 p.40] [16]. Bank shares cost Tk 258.0m and were valued at Tk 139.6m [1 p.40]. The bank list includes holdings in Union Bank PLC, Exim Bank Ltd, First Security Bank PLC and Social Islami Bank PLC [1 p.40]. 'Eastern Housing Limited' is listed under '2. FINANCIAL INSTITUTIONS', and 'Trust Islami Life Insurance Limited' is printed with its own sub total directly after the '8. INSURANCE - NON LIFE' sub total [1 p.40] [1 p.41]; we show both as printed. The non-life list includes ISLAMI INS (23,015 shares) and Nitol Ins (43,365 shares), two of the peers below [1 p.41].

Two column headers and the auditor's numbers. The sub-total columns on the continuation pages are headed '31-12-2025' and '31-12-2024', while the first page heads the same columns 'Total Value at Cost' and 'Market Value 31.12.2025' [1 p.40] [1 p.41]; the grand total of Tk 401,796,276 and Tk 302,851,445 agrees with the cost and fair value in note 14.02 [1 p.42]. The auditor's sixth basis paragraph states: 'our calculated amount is cost value Tk. 321,455,597, and market value Tk. 298,886,574 respectively; resulted overstated cost value Tk. 80,340,679 and overstated market value Tk. 3,964,870 respectively' [1 p.5]. It also states that recording the unrealised loss of Tk 98,944,831 in equity rather than profit or loss means 'the Company's Profit Before Tax (PBT) is overstated by Tk. 98,944,831' [1 p.5].

Fair-value reserve: two figures. Note 14.02 gives an 'Investment fluctuation fund as at 31 December 2025' of minus Tk 98,944,831 and a fair-value adjustment for the year of minus Tk 32,259,123, which matches the OCI line in the profit and loss statement [1 p.42] [1 p.19]. The company statement of financial position shows 'Investment fluctuation fund' of minus Tk 6,444,831 against Tk 92,500,000 a year earlier [1 p.17]; the consolidated statement shows Tk 1,266,421 [1 p.12]. The filing's figures conflict and we state each as printed.

Ratios 2020-2025: ROE 6.0% in 2025 within a 4.1%-11.1% range; equity 78.3% of assets

Returns. Return on average printed equity was 6.0% in 2025 against 4.9% in 2024; across 2021-2025 it ranged from 4.1% (2023) to 11.1% (2021) [16]. Return on average assets was 4.7%, within a 3.1% (2023) to 8.3% (2021) range [16]. The underwriting margin was 17.0% in 2025; it was 44.5% in 2020, 44.1% in 2021, 41.4% in 2022, 22.6% in 2023 and minus 0.1% in 2024 on the key-data figures [16]. Profit after tax was Tk 143.65m (2020), Tk 222.70m (2021), Tk 152.91m (2022), Tk 88.04m (2023), Tk 103.87m (2024) and Tk 123.89m (2025): lowest Tk 88.04m (2023), highest Tk 222.70m (2021) [3 p.72] [2 p.87] [1 p.19]. Profit after tax is struck before the reserve for exceptional losses, which took Tk 42.7m in 2025 [1 p.37].

EPS and NAV sequences. EPS as printed: Tk 3.33 (2020), Tk 5.16 (2021), Tk 3.55 (2022), Tk 2.04 (2023), Tk 2.41 (2024) and Tk 2.87 (2025) [2 p.87] [1 p.19]. Consolidated EPS was Tk 2.43 for 2024 and Tk 2.88 for 2025 [1 p.14] [1 p.45]. NAV per share as printed: Tk 47.33, Tk 51.52, Tk 52.49, Tk 51.13, Tk 49.85 and Tk 49.63 for 2020-2025 [2 p.87] [1 p.46]. Consolidated NAV per share was Tk 50.63 for 2024 and Tk 50.13 for 2025 [1 p.13]. Note 28 computes NAV as total assets less 'Total Liabilities', a total that excludes the Tk 84.0m balance of funds; on shareholders' equity of Tk 2,055.5m the figure is Tk 47.68 a share (our derivation) [1 p.46] [1 p.17] [16].

Leverage and liquidity. Equity was 78.3% of total assets in 2025 and 78.1% in 2024, against 73.5% in 2020 [16]. Net premium was 0.10 times equity in 2025 [16]. The 2024 annual report printed a current ratio of 4.63 for 2024 [2 p.87]. Total assets were Tk 2,626.2m at end-2025, against a high of Tk 2,869.09m (2023) and a low of Tk 2,092.17m (2016) in the ten-year series [3 p.72] [2 p.87] [1 p.18].

Cash conversion. Net operating cash flow was Tk 99.6m in 2025 (NOCFPS Tk 2.31) against Tk 67.8m (Tk 1.57) on the company basis [1 p.21]. On the consolidated basis the figures were Tk 100.3m (Tk 2.33) and Tk 68.2m (Tk 1.58) [1 p.16]. Operating cash flow was 0.80 times profit after tax in 2025 and 0.66 times in 2024 (company basis) [16]. Investing used Tk 51.7m, including Tk 32.1m of treasury bonds and Tk 25.6m of fixed assets, and Tk 69.1m went on dividends [1 p.21]. Cash and cash equivalents fell by Tk 21.3m to Tk 1,227.9m [1 p.21]. The auditor's fifth emphasis-of-matter paragraph states that it was 'unable to obtain the detailed workings or supporting schedules for the Statement of Cash Flows' [1 p.7].

Tax. Tax was 23.1% of pre-tax profit in 2025 and 25.6% in 2024 [16]. The current-tax computation applies 37.5% to business profit of Tk 87.5m and 15%-20% to share gains, BGTB interest and dividends [1 p.38]. Six appeals are pending with the High Court Division for assessment years 2008-2009 to 2015-2016, and two more for 2021-2022 and 2022-2023 are 'under processing with the High Court' [1 p.34]. Advance income tax was Tk 175.1m and the provision for taxation Tk 235.3m at end-2025 [1 p.42] [1 p.38]. The 2024 auditor's tenth basis paragraph stated that the advance income tax 'has not been adjusted against the income tax expense' [2 p.132].

Peers 2025: combined ratio 68.1% at Eastern against 63.7%-82.2% at six general insurers

We compare Eastern with six listed general insurers, each on its own 2025 consolidated revenue account and one combined-ratio definition. We read each auditor's opinion first. Karnaphuli's auditor states that the financial statements 'present fairly, in all material respects' [5 p.148]. Peoples' auditor writes, as printed, 'present true and fair view. all material respects' [6 p.256]. Nitol's auditor states 'present fairly, in all material respects' and adds three paragraphs headed 'Emphasize of matter' [7 p.181]. Islami Insurance's auditor states that the statements 'give a true and fair view' and adds four emphasis-of-matter paragraphs [8 p.98]. BGIC's auditor gives a 'Qualified Opinion', 'except for the matters described in the Basis for Qualified Opinion section' [9 p.318]. Central Insurance's auditor gives an 'Adverse Opinion': the statements 'do not present fairly the financial position of the company' [10 p.3]. Eastern's opinion is qualified [1 p.3].

What the table shows. Within these seven, Eastern had the smallest net premium (Tk 203.7m) and the highest expense ratio (70.1%) [16]. Its claims ratio of minus 2.0% was the lowest of the seven; Peoples also reported negative net claims (minus 0.6%) [16] [6 p.264]. Its combined ratio of 68.1% was the third lowest, above Peoples (63.7%) and Islami (67.7%) and below Nitol (72.7%), Central (79.8%), BGIC (81.4%) and Karnaphuli (82.2%) [16]. Its underwriting profit of 17.0% of net premium was the fifth highest of the seven, against 38.5% at Peoples and 13.8% at BGIC [16]. The gap to the Peoples combined ratio was 4.4pp and to Karnaphuli minus 14.0pp [16].

Labels and basis. The printed labels differ. Eastern prints 'Expenses of management' (Tk 112.5m) and 'Insurance stamps consumed' (Tk 3.5m) separately, and we add them [1 p.22]. Islami prints 'Expenses of management (with stamp used)' [8 p.110]. Nitol prints 'Commission on Re-insurance Ceded' (Tk 61.0m) and 'Profit Commission' (Tk 20.9m) separately, and we add them [7 p.189]. Karnaphuli prints no stamp line [5 p.181]. Peoples reserves unexpired risk at '45 % of the net premium income' against 40% at Eastern, Nitol and Central (100% hull at all of them) [6 p.264] [1 p.33] [7 p.189] [10 p.11]; the combined ratio excludes the reserve movement. All figures are for calendar 2025 and taken from each company's revenue account; Eastern and BGIC carry qualified opinions and Central an adverse opinion, so their figures carry those auditors' reservations.

Balance sheet and audit: Tk 1,227.9m cash and deposits, no borrowings line, qualified opinion with 10 basis and 6 emphasis paragraphs

Layout and Form AA. The company balance sheet shows no borrowing line; liabilities and provisions comprise outstanding claims, provision for expenses, amounts due to other insurers, sundry creditors (including a Tk 15.9m lease liability), dividend payable, deferred tax and the tax provision [1 p.17] [1 p.37]. The 'Classified Summary of Assets' (Form AA) lists Tk 1,204,291,484 on fixed deposit, Tk 219,563,014 of treasury bonds and Tk 401,796,276 of 'Investment in shares', the cost figure rather than the Tk 302,851,445 carried on the balance sheet [1 p.48] [1 p.18]. Land is shown at Tk 226,875,000 [1 p.48]. The revaluation reserve of Tk 394.3m comes from revaluations of land in 2008 and CSE membership in 2011 [1 p.36].

Audit opinion. Islam Jahid & Co., Chartered Accountants (Md. Jahidul Islam FCA, Managing Partner) signed the report on 30 April 2026 [1 p.11]. The opinion reads, as printed: 'In our opinion, except for the effects described in the Basis for Qualified Opinion section of our report, the accompanying consolidated financial statements of the Group and separate financial statements of the company present fairly, in all material respects, the consolidated financial position of the Group and the separate financial position of the company as at December 31, 2025, and of its consolidated and separate profit or loss and other comprehensive income and its consolidation and separate cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the Companies Act, 1994, the Insurance Act, 2010, the Insurance Rules, 1958, the Securities and Exchange Rules, 2020 and other applicable laws and regulations.' [1 p.3]. DSE posted the auditor-opinion notice on 2-Jun-2026 [12].

Basis for qualified opinion, quoted in full. The section has 10 numbered paragraphs, quoted below word for word from the page images, with the auditor's numbering and spelling; page references are to the filing [1 p.3] [1 p.4] [1 p.5] [1 p.6] [1 p.7]. Bracketed words mark text illegible under the auditor's stamp.

• 1. In consolidated financial statements, the investment in a subsidiary amounting to Tk. 216,931,850/- has been adjusted against the share capital of Tk.9,999,800 and share premium of Tk. 206,932,050/- as a consolidated adjustment, which resulted in a significant reporting departure of IFRS 10. The Group's management has not provided the detailed consolidation working papers necessary to verify the accuracy of the consolidated financial statement balances or to confirm compliance with the requirements of IFRS 10, Consolidated Financial Statements. Consequently, we were unable to perform the audit procedures we deemed necessary to verify the elimination of intra-group transactions or the valuation of consolidated account balances. Furthermore, the Group has failed to recognize Goodwill in the consolidated statement of financial position as required by IFRS 3, Business Combinations, and has not adjusted the Non-Controlling Interest (NCI) for its share of post-acquisition profit or loss and other comprehensive income as mandated by IFRS 10. These omissions represent a significant departure from IFRS, the impact of which on the consolidated assets, liabilities, equity, and financial performance has not been determined but is considered material to the consolidated financial statements. [p.3]
• 2. For the year ended 31 December 2023, the Group disposed of a portion of its shares held against CSE Membership. These shares were initially classified under “Hold for investment.” However, in accordance with IFRS 9 – Financial Instruments, such financial assets should have been measured at fair value through other comprehensive income (FVOCI). A total of 1,071,833 shares were sold for Tk. 16,077,495, whereas th[words under the auditor's stamp] value (acquisition cost) was Tk. 70,000,032. This resulted in a loss of Tk. 53,922,538, which would have been recognized in the statement of profit or loss and other comprehensive income as a “Loss on disposal of shares.” However, in the financial statements for the year ended 31 December 2024, the Group accounted for and reported this loss by adjusting it against the Share Premium Account. This accounting treatment deviated from the requirements of paragraph 42 of IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors, and paragraph 3.2.13 of IFRS 9 – Financial Instruments. As a result, the balance of the Profit and Loss Appropriation Account had been overstated by Tk. 53,922,538, while the Share Premium Account had been understated by the same amount for the year ended 31 December 2024. This accounting deviation has not been adjusted and corrected to the financial statements in the year ended 31 December 2025. [p.3-4]
• 3. As disclosed in Note 5.00, the Company revalued its land in 2008 and its membership in the Chittagong Stock Exchange in 2011 but has not performed any subsequent revaluations. This is a departure from Paragraphs 31 and 34 of IAS 16, Property, Plant and Equipment, and Clause 1(5)(xxvii) of the BSEC Corporate Governance Code, which require revaluations to be conducted with sufficient regularity to ensure that the carrying amount does not differ materially from fair value. In the absence of a current valuation, we were unable to determine the extent of any adjustment necessary to the carrying amounts of these assets. Furthermore, For the year ended 31 December 2025, the Group disclosed its shares held against CSE Membership, which were initially classified under “Hold for Investment” and measured at cost. These investments were presented in the Consolidated Statement of Financial Position under the heading “CSE Membership.” However, in accordance with IFRS 9 Financial Instruments, such financial assets should be measured at fair value through other comprehensive income (FVOCI) rather than at cost. Despite this requirement, neither the subsidiary nor the Group has remeasured the investment at fair value, nor recognized any corresponding adjustments through other comprehensive income. As a result, there is a risk of material misstatement in both the net profit transferred to the Profit and Loss Appropriation Account and the carrying amount of the investment reported in the Statement of Financial Position. Consequently, profit may be either overstated or understated, and the reported value of the investment may not reflect its fair value. [p.4]
• 4. As disclosed in Note 8.00 to the financial statements, the Company has recognized an Estimated Liability in respect of outstanding claims whether due or intimated amounting to Tk. 60,089,848. Claims raised during the year were recorded as a negative figure of Tk. (4,069,994). This treatment erroneously reflects claim provisions as a credit to the revenue account rather than an expense or liability, which is a departure from International Financial Reporting Standards (IFRS) and accrual-based accounting. We did not find details ledger for claims payable. The absence of a detailed ledger and aging analysis prevents the verification of the accuracy, existence, and completeness of the reported liability. This indicates that proper books of account, specifically regarding claims management, have not been maintained as required by the Companies Act, 1994. While the Company reported claim payments of Tk. 23,299,803, it has not settled significant outstanding claims in accordance with the timelines stipulated under Section 72 of the Insurance Act, 2010. Moreover, We were unable to verify the reported net claim income of Tk. 4,069,994 disclosed in the Revenue Account and Note 25.00, as the underlying summary provided by the Company indicated a gross claim payment of Tk. 83,389,423 and reinsurance recoveries of Tk. 61,943,007, resulting in a calculated net payment of Tk. 21,446,416 which does not reconcile with the financial statements. Furthermore, the Company failed to provide a detailed schedule of claims or any documentary evidence to support the total gross payments of Tk. 83,389,423. We were not provided with sufficient documentary evidence or claimant correspondence, detailed schedule of claims to justify the delays in settlement or to assess potential legal and regulatory repercussions. Consequently, we were unable to satisfy ourselves through audit procedures as to the true extent of the Company's liability for outstanding claims or the resulting impact on the reported profit for the year. [p.4-5]
• 5. As disclosed in Note 11.00 to the financial statements, the Company reported Sundry Creditors totaling Tk. 53,354,945. This balance includes Sundry Payables (Tk. 36,219,373), and Lease Liability on Rent (Tk. 15,861,279). Management was unable to provide the necessary subsidiary ledgers, third-party confirmations, or underlying supporting documentation to substantiate these liabilities. In the absence of such records, we were unable to satisfy ourselves through audit procedures regarding the existence, accuracy, and valuation of these obligations, or to determine whether any adjustments were necessary to the financial statements for the year then ended. [p.5]
• 6. The Company recognized Investment in Shares & Debentures at a market value of Tk. 302,851,445 against a cost of Tk. 406,898,556, recording the resulting unrealized loss of Tk. 98,944,831 directly in equity. Given the trading nature of these investments, Paragraph 4.1.1 of IFRS 9: Financial Instruments requires them to be measured at Fair Value Through Profit or Loss (FVTPL). By failing to recognize this fair value adjustment in the Statement of Profit or Loss, the Company's Profit Before Tax (PBT) is overstated by Tk. 98,944,831. Additionally, a net adjustment of Tk. 5,102,281 was recorded within this account without any supporting documentation to validate its appropriateness. Furthermore, we observed that the reported cost and market value has anomalies between the company's records and our calculations. The company's records of Investments in shares and debentures is cost value Tk. 401,796,276, and market value Tk. 302,851,445 respectively whereas our calculated amount is cost value Tk. 321,455,597, and market value Tk. 298,886,574 respectively; resulted overstated cost value Tk. 80,340,679 and overstated market value Tk. 3,964,870 respectively. Our audit identified significant, unexplained discrepancies between the available records, the balances presented in the financial statements and our calculations. Due to the lack of reconciliations and supporting evidence, we were unable to satisfy ourselves through alternative audit procedures regarding the existence, accuracy, and valuation of the investment portfolio, which indicates a failure to maintain proper books of account in accordance with the Companies Act, 1994. [p.5]
• 7. As referred to Note No. 17.00, the Company reported Sundry Debtors (including Advances, Deposits & Prepayments) totaling Tk. 205,892,488, which includes Advance Income Tax (AIT) of Tk. 175,148,259. We did not get AIT certificate against Dividend Income but they maintained supporting documentation against FDR, BGTB. Furthermore, referred to Note No. 17.02 within Rent and Other Receivables Tk. 30,744,229, the Company recognized Land and Office Rent advances, Salary advances, and EBS Properties balances for which no underlying contracts, payment vouchers, or third-party confirmations were available. In the absence of such evidence, we were unable to verify the recoverability, valuation, or existence of these balances. As a result, we could not determine the extent of any necessary adjustments to the carrying value of Sundry Debtors or the resulting impact on the Company's financial position and results of operations for the year ended 31 December 2025. [p.6]
• 8. As disclosed in Note 18.00, the Company reported Fixed Deposit Receipts (FDR) totaling Tk. 1,204,291,484 spread across 563 accounts in 46 different banks. Our audit identified significant internal control deficiencies, as the encashment and reinvestment of these funds were conducted without the mandatory approval of the Investment Committee. Furthermore, the Company has invested Tk. 263,941,484 in five distressed Banks (Union Bank Ltd., Exim Bank Plc., First Security Islami Bank, Global Islami Bank, and Social Islami Bank). Given the severe liquidity constraints and uncertain status of these banks, the recoverability of the full principal amount is highly doubtful. Despite this, Management has not recognized any impairment loss or provision, resulting in a material overstatement of FDR investments and profit for the year. As part of our audit procedures, we sent third-party balance confirmation requests for all bank accounts and FDRs held as of the reporting date. However, we did not receive independent confirmations for balances totaling Tk. 1,204,291,484, which represents 98% of total Cash and Cash Equivalents and 46% of the Company's total assets. Although Management provided internal records, the absence of direct external confirmations from 46 banks prevents us from satisfying ourselves regarding the existence, accuracy, and lien status of these significant balances. Consequently, we were unable to determine whether any adjustments were necessary to the financial statements regarding these reported amounts. In addition, as disclosed in Note 16.00, the Company recognized interest income and receivables totaling Tk. 15,851,317 from five distressed/defunct Banks (Union Bank Ltd, Exim Bank PLC, First Security Islami Bank PLC, Global Islami Bank PLC, and Social Islami Bank PLC). Given the current financial standing of these Banks, the recoverability of these amounts is highly improbable. In accordance with IFRS 15 and IFRS 9, income should only be recognized when it is probable that the economic benefits will flow to the entity. Consequently, both interest income and interest receivables are overstated by Tk. 15,851,317 for the current year. [p.6]
• 9. We were unable to physically verify the opening balance of fixed assets (excluding land, motor vehicles, and ROU assets) amounting to Tk. 372,472,151 within the total reported fixed assets of Tk. 266,172,294 (Note 20.00), due to the absence of a Fixed Asset Register and physical identification tags. Furthermore, the Company did not conduct impairment testing on its fixed assets as required by IAS 36 Impairment of Assets, and we were unable to determine the impact of any potential impairment on the carrying value. Regarding motor vehicles, we noted that legal ownership of seven vehicles with a cost of Tk. 11,571,000 remains with Uttara Finance and Securities Limited rather than the Company; additionally, no supporting documentation was provided for the disposal of four motor vehicles for Tk. 1,900,000. Finally, we were unable to obtain sufficient appropriate audit evidence regarding the Right-of-Use (ROU) assets balance of Tk. 23,140,326 and disposals of Tk. 91,192,753 during the year due to a lack of supporting documentation. Consequently, we were unable to determine whether any adjustments were necessary concerning the existence, ownership, valuation, and completeness of these asset categories and their related impact on the financial results. [p.6-7]
• 10. We identified a significant discrepancy in premium income, where the Revenue Account reported net premium of Tk. 203,719,789, while the XL-Form and financial statement disclosures reflected a total direct and PSB premium of Tk. 456,724,746. Due to lack of supporting documentation, we were unable to perform necessary test checks or alternative procedures to reconcile these balances. Consequently, we were unable to determine whether any adjustments were necessary regarding these expenses and income, or their cumulative impact on the Company's financial results and net assets for the year ended 31 December 2025. [p.7]

Emphasis of Matters, quoted in full. Six numbered paragraphs, word for word [1 p.7] [1 p.8]. Paragraph 1 refers to the year ended 31 December 2024 as printed. The section closes: 'Our opinion is not qualified for the above respects of the matters.' [1 p.8].

• 1. The Company has not been making any contributions to the Workers' Profit Participation Fund for the year ended 31 December 2024 as disclosed in Note # 2.07 (n) (iv) to the financial statements. This is clear violation of Labour Act 2006. [p.7]
• 2. As disclosed in Note 11.01 to the financial statements, the Company reported Dividend Payable of Tk. 2,387,934. During the year, a cash dividend of Tk. 64,665,216 (representing 15% of the paid-up capital) was declared at the 39th Annual General Meeting held on 14 July 2025. In accordance with Paragraph 3(i) of the BSEC Directive No. BSEC/CMRRCD/2021-386/03 dated 14 January 2021, the Company is mandated to transfer the declared cash dividend into a separate designated bank account within ten (10) days of the Board of Directors' decision. The Company has failed to comply with this regulatory requirement, and we were not provided with evidence of such a designated account or the timely transfer of funds, constituting a material breach of Bangladesh Securities and Exchange Commission regulations. [p.7]
• 3. The Company disclosed that it has a Defined Benefit Gratuity Scheme in its financial statements. However, it has not made any provision for gratuity expenses. Furthermore, the Company did not carry out the actuarial valuation required under paragraph 67 of IAS 19 Employee Benefits. As a result, the amount of provision that should have been recognized could not be determined. Consequently, the net profit for the year and the balance in the Profit and Loss Appropriation Account have been overstated by the amount of the unrecognized gratuity provision. Similarly, the Company's liabilities have been understated to the same extent. [p.7]
• 4. As disclosed in Note 12.00 to the financial statements, the Company has recognized a Deferred Tax Liability of Tk. 111,533. In accordance with IAS 12: Income Taxes, deferred tax should be calculated based on the temporary differences between the carrying amounts of assets and liabilities in the financial statements and their corresponding tax bases. However, Management did not provide the relevant tax base schedules or the underlying computations to support this figure. Consequently, we were unable to verify the accuracy of the deferred tax calculation or determine the potential impact of any misstatements on the Company's tax expense and financial position. [p.7]
• 5. We were unable to obtain the detailed workings or supporting schedules for the Statement of Cash Flows, covering operating, investing, and financing activities, for the year ended 31 December 2025. In the absence of these underlying records, we could not verify the accuracy of the classifications or the reconciliation of the net cash flows with the related items in the Statement of Financial Position and Statement of Profit or Loss and Other Comprehensive Income. Consequently, we were unable to satisfy ourselves as to the fair presentation of the cash flows in accordance with IAS 7 Statement of Cash Flows, or to determine whether any adjustments were necessary to the reported cash flow amounts. [p.7-8]
• 6. As disclosed in Note 10.00 to the financial statements, the Company has recognized a balance of Tk. 124,983,277 representing Amounts due to other persons or bodies carrying on insurance business as well as referred to Note No. 19.00, Amount due from other persons or bodies carrying on insurance business of Tk. 113,982,009 was shown to the statement of financial position which amounts are related to outstanding position between the company and Sadharan Bima Corporation (SCB). The company is to submit quarterly report to the Sadharan Bima Corporation (SCB). We sought quarterly reports from the company, but we did not get quarterly reports from them. Consequently, we were unable to determine whether any adjustments were necessary in respect of the recorded amount, its payment probability and recoverability, or the potential impact on the financial results and net liability and assets for the year then ended. [p.8]

Key audit matter and Other Matter Paragraph. The one key audit matter reads: 'This financial statement represents Taka 9,588,026 as Premium deposit. The mentioned amount includes premium received against cover notes for which policies have not been issued within December 31, 2025. While the risks against non-marine and marine hull have been assumed from the issuance of cover notes, risks against marine cargo have not been assumed until shipment advices are provided and accordingly, policies are issued.' [1 p.8]. The 'Other Matter Paragraph.' has three numbered items, quoted below [1 p.9].

• 1. Last year statutory audit was performed by Mahamud Shabuj & Co., Chartered Accountants and issued qualified opinion. [p.9]
• 2. The financial statements of EIC Securities Ltd. for the year ended December 31, 2025, were audited by K.M. Alam & Co., who expressed an unqualified opinion on these statements. [p.9]
• 3. We sent confimation letter BO accounts confirmation to different securities houses but we did not get response. We also sent confirmation letter for BGTB balances to Prime Bank PLC but we did not get any response. [p.9]

FY2024 opinion as printed. 'In our opinion, except the matter described in the basis for qualified opinion section of our report, the accompanying consolidated and separate financial statements give a true and fair view of the financial position of the company as at December 31, 2024, financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the Companies Act, 1994, the Insurance Act, 2010, the Insurance Rules, 1958, the Securities and Exchange Rules, 2020 and other applicable laws and regulations.' [2 p.131]. The 2024 Other Matter paragraph reads: 'The financial statements of EIC Securities Ltd. for the year ended December 31, 2024, were audited by K.M. Alam & Co., who expressed a qualified opinion on these statements on April 23, 2025.' [2 p.133].

FY2024 for comparison. The 2024 report had 12 numbered basis paragraphs and three emphasis-of-matter paragraphs [2 p.131] [2 p.132]. Its fourth basis paragraph stated that transferring 10% of premium to the reserve for exceptional losses 'constitutes a clear violation of Sections 26–28 of the Insurance Act, 2010, as well as IDRA's solvency margin guidelines' [2 p.132]; that paragraph does not appear in the 2025 report, where the transfer of Tk 42,672,475 continued 'on basis 10% on Premium Income' [1 p.37]. The two reports give different share counts for the same 2023 CSE-share sale (1,500,565 in 2024, 1,071,833 in 2025) with the same proceeds and loss [2 p.131] [1 p.3]; we flag the conflict.

2026 so far: H1 profit after tax Tk 78.2m against Tk 73.1m; nine-month EPS Tk 2.86 against Tk 2.77

H1 2026. Gross premium was Tk 223.9m against Tk 213.4m and net premium Tk 118.5m against Tk 117.6m [4 p.5] [4 p.2]. 'Commission & Expenses' fell 22.4% to Tk 70.1m, and investment and other income fell 13.9% to Tk 81.3m [4 p.2] [16]. Profit after tax was Tk 78.2m (EPS Tk 1.81) against Tk 73.1m (Tk 1.69) [4 p.2]. The company states the increase 'was mainly attributable to higher underwriting income together with a reduction in commission and management expenses' [4 p.6]. The Business Standard reported on 24-Dec-2025 that IDRA scrapped commission payments in non-life insurance from 1-Jan-2026 [13]. The filings do not link them.

Balance sheet at June 2026. Total assets were Tk 2,829.9m and NAV per share Tk 52.57 [4 p.1]. The statement of changes in equity shows Tk 40,850,776 credited to the investment fluctuation fund in the half [4 p.3]. Net operating cash flow was Tk 93.6m (NOCFPS Tk 2.17) against Tk 32.2m (Tk 0.75), and closing cash and bank balances were Tk 1,324.7m [4 p.4]. The Q2 note on credit rating gives NCR's outlook as 'Stable' based on the 2024 accounts [4 p.7]; DSE's 23-Dec-2025 post on the same rating gives a 'Developing' outlook [12]. The filings conflict and we state both.

EPS sequence, figure by figure. 2025: Q1 Tk 0.63, Q2 Tk 1.07, H1 Tk 1.69, Q3 Tk 1.08, nine months Tk 2.77 [12]. 2026: Q1 Tk 0.74, Q2 Tk 1.18, H1 Tk 1.81, Q3 Tk 1.04, nine months Tk 2.86 [12]. The 2026 Q1 and Q2 figures add to Tk 1.92, against the Tk 1.81 printed for the half (our arithmetic); the H1 statement gives April-June profit after tax of Tk 50.75m and half-year profit of Tk 78.19m, which implies Tk 27.43m for January-March [4 p.2] [16]. We flag the difference and use the printed figures. NAV per share as posted: Tk 50.52 (Mar-2025), Tk 52.02 (Jun-2025), Tk 52.02 (Sep-2025), Tk 49.63 (Dec-2025), Tk 50.71 (Mar-2026), Tk 52.57 (Jun-2026) and Tk 52.23 (Sep-2026) [12].

Q3 2026 (announced). After a board meeting on 28-Oct-2026, DSE posted on 29-Oct-2026: Q3 EPS Tk 1.04 against Tk 1.08; nine-month EPS Tk 2.86 against Tk 2.77; nine-month NOCFPS Tk 3.93 against Tk 2.53; and NAV per share Tk 52.23 at 30-Sep-2026 [12]. The stated reasons were 'higher operating income and short payment of Re-Insurance Premium' [12]. Nine-month EPS was 3.2% higher (our arithmetic) [16]. The Q3 2026 accounts were not in our filings corpus when this note was written. Trailing EPS to September 2026 is Tk 2.96 (our derivation) [16].

Governance: sponsors 44.86%, 15% cash dividend for 2024 and 2025, board as printed in the 2024 report

Ownership. At end-2025 Group 'A' shareholders (sponsors) held 19,341,124 shares (44.86%) and Group 'B' shareholders (public) 23,769,020 shares (55.14%) [1 p.36]. The sponsor holding was Tk 197,711,240 of paid-up value at end-2024 and Tk 193,411,240 at end-2025 [1 p.36]. The heading of note 3.02 reads 'Classification of share holding position of the company at 31 December 2023' [1 p.36].

Board. The 2025 filing is the audited financial statements only and prints no board list; its statements are signed by the Chief Executive Officer, Company Secretary, two Directors and the Chairman without printed names [1 p.47]. The latest board page in the corpus is in the 2024 annual report, which prints: Chairman A.S.M. Waheeduzzaman; Vice-Chairman Azmal Hossain; Directors Major (Retd.) Abdul Mannan, Matiur Rahman, Dr. Mohammed Mohsin, Mujibur Rahman, Umme Kulsum Mannan, Rawnak Karim, Rokeya Ferdous, Mohammed Israil, Zakia Rahman, Nayeemur Rahman, Tazreen Rahman and Tajrina Mannan; Independent Directors A.S.M. Waheeduzzaman, Mohammad Tofazzel Hossain, FCA and Haider Ahmed Khan, FCA; Chief Executive Officer Mr. Hasan Tarek; Company Secretary Kazi Farhana [2 p.11]. A.S.M. Waheeduzzaman is printed both as Chairman and as an Independent Director [2 p.11]. Directors were paid Tk 1,408,000 of meeting fees in 2025 at Tk 8,000 per meeting [1 p.47].

Committees. The 2024 report also prints the Nomination & Remuneration Committee (Chairman Mr. Mohammad Tofazzel Hossain, FCA; Members Mr. A.S.M. Waheeduzzaman, Mr. Azmal Hossain, Major(Retd.) Abdul Mannan and Mr. Mujibur Rahman) and the Promotion Committee (Chairman Mr. Azmal Hossain; Members Mr. A.S.M. Waheeduzzaman, Mr. Nayeemur Rahman, Ms. Tajrina Mannan, Mr. Mohammad Tofazzel Hossain, FCA and the Chief Executive Officer, with serial numbers printed in the order 1, 2, 4, 5, 3, 6) [2 p.84]. The Risk Management Committee is chaired by Mr. A.S.M. Waheeduzzaman with Mr. Azmal Hossain, Mr. Mohammad Mohsin and Mr. Haider Ahmed Khan,FCA, and the Policy Holder Protection & Compliance Committee by Mr. Haider Ahmed Khan,FCA with Mr .Azmal Hossain, Ms. Tajrina Mannan, Mrs. Rokeya Ferdoush and Mr. Mohammad Toffazzel Hossain, FCA [2 p.86]. The spellings differ from the board page ('Rokeya Ferdous', 'Mohammad Tofazzel Hossain') as printed [2 p.11] [2 p.86].

Related parties. Note 32 lists six named parties and the amounts above [1 p.47]. Note 33 states that 'Nothing was due to/from any of the Directors of the Company' at the balance-sheet date [1 p.47]. Separately, the auditor's ninth basis paragraph names Uttara Finance and Securities Limited as legal owner of seven company vehicles costing Tk 11,571,000 [1 p.6]; note 11 shows a 'Lease finance (UFIL)' balance of Tk 60,000 at end-2024 and nil at end-2025 [1 p.37]. Note 38, on events after the reporting period, refers to a board meeting 'on ......th April 2024' recommending a cash dividend '@ .....%', with the blanks as printed [1 p.47].

Dividends. Cash dividends were Tk 86,220,288 (Tk 2.00 a share) for each year from 2016 to 2020, Tk 2.20 for 2021 and 2022, Tk 2.00 for 2023, and Tk 1.50 (15%) for 2024 and 2025; no stock dividends were printed for 2020-2024 [3 p.72] [2 p.87] [12]. For 2025 the board meeting was held on April 30, 2026 (notice posted 20-Apr-2026), the 15% recommendation was posted on 3-May-2026, the record date was 16-Jun-2026, the AGM was set for July 14, 2026 on a digital platform, and DSE posted the disbursement on 12-Aug-2026 [12]. For 2024 the board met on April 28, 2025, the recommendation was posted on 29-Apr-2025, the record date was 27-May-2025, the AGM was on 14-Jul-2025 and DSE posted the disbursement on 12-Aug-2025 [12]. Cash payout was 52.3% of 2025 EPS and ranged from 42.6% (2021) to 98.0% (2023) over 2020-2025 [16]. Dividends paid in cash were Tk 69.1m in 2025 against Tk 90.3m [1 p.21].

24 months of DSE news. The DSE archive from 1-Nov-2024 to 1-Nov-2026 holds 34 posts: results, dividend, record-date, spot-market, board-meeting, auditor-opinion, credit-rating and name-change notices [12]. It contains no correction notice, and no notice of a board approval for a capital project, expansion, rights issue or acquisition [12]. National Credit Ratings Limited's surveillance ratings of 'AAA' and 'ST-1' with a 'Developing' outlook were posted on 8-Dec-2024 (on the 2023 accounts) and 23-Dec-2025 (on the 2024 accounts) [12]. The 2025 notes state 'There was no capital commitment at the end of the year' [1 p.47]. Fixed-asset purchases were Tk 25.6m in 2025 [1 p.21].

What's next: dated events after 31-Oct-2026

These are dated events after 31-Oct-2026. We do not forecast numbers. Dates marked '(inferred)' come from precedent board-meeting and announcement dates in the 24-month DSE sweep; each range rests on two years only (the 2025 and 2026 cycles), because earlier cycles fall outside the sweep and the filings read do not print earlier board-meeting dates. No date has been notified for any of them. The latest accounts are not overdue: Q3 2026 results were posted on 29-Oct-2026 after the board met on 28-Oct-2026 [12].

The FY2026 report. The FY2026 audited accounts are inferred for 28-30 April 2027. The Business Standard reported that IDRA ended commission payments in non-life insurance from 1-Jan-2026 [13]. Eastern's 2025 revenue accounts carry Tk 52.2m of agency commission [1 p.22]. The filings do not link them. The 2025 auditor's basis paragraphs cover the FDRs in the five named banks, the claims ledger and the share portfolio [1 p.4] [1 p.5] [1 p.6].

LDC graduation. The UN General Assembly adopted the move of Bangladesh's graduation from 24-Nov-2026 to 24-Nov-2029 [14] [15]. The company's filings do not discuss it.

Risks: each item and the line it relates to

Reading the table. Each row repeats what the filing or the auditor states and names the line in the accounts that the item sits in. The auditor did not quantify the effect of most basis paragraphs; where it did, the amounts are shown [1 p.3] [1 p.5] [1 p.6]. Investment and other income was 95.6% of pre-tax profit in 2025, so the interest and FDR rows relate to the largest income line [16]. The 2025 notes record one legal case on a fire claim filed in 2006, pending with the court, and state that 'The management is of the opinion that judgment in this regard will be in favor of the Company' [1 p.47].

History 2016-2025 and market data

Figures for 2016-2019 come from the 2020 annual report's 'Key Operating and Financial Data' page, for 2020-2024 from the same table in the 2024 annual report, and for 2025 from the audited 2025 statements [3 p.72] [2 p.87] [1 p.19]. The two tables agree for 2020 on gross premium, net premium, net claims, pre-tax profit and total assets [3 p.72] [2 p.87]. The 2016-2019 table prints no profit after tax, EPS or NAV. Pre-tax profit was lowest at Tk 112.35m (2023) and highest at Tk 267.70m (2021) [3 p.72] [2 p.87]. Printed net claims were lowest at minus Tk 4.07m (2025) and highest at Tk 57.71m (2024); on the 2025 revenue account's Tk 28.24m for 2024, the highest is Tk 53.17m (2021) [3 p.72] [2 p.87] [1 p.22].

Market data (facts only). The shares closed at Tk 56.3 on 29-Oct-2026, 12.4% above the Tk 50.1 close on 29-Oct-2025; on DSE trading-day closes between 30-Oct-2025 and 29-Oct-2026 the low was Tk 41.1 (13-Nov-2025) and the high Tk 66.7 (17-Aug-2026) [11] [16]. Market value at Tk 56.3 was Tk 2.43bn [16]. That is 19.6 times 2025 EPS, 19.0 times trailing EPS to September 2026 (derived), 1.08 times NAV per share at 30-Sep-2026, and a 2.7% yield on the 2025 dividend [16]. On the year-end prices printed in the 2024 annual report, P/E was 31.9x (2020), 22.3x (2021), 13.8x (2022), 33.3x (2023) and 20.5x (2024), and P/B 2.25x, 2.23x, 0.94x, 1.33x and 0.99x [2 p.87] [16].

FAQ

How profitable was Eastern Insurance in 2025?

Company profit after tax was Tk 123.9m (EPS Tk 2.87) against Tk 103.9m (Tk 2.41) in 2024. Underwriting profit was Tk 34.6m and interest, dividend and other income Tk 152.7m. Return on average equity was 6.0%.

What did the auditor say about Eastern Insurance's 2025 accounts?

Islam Jahid & Co. gave a qualified opinion, 'except for the effects described in the Basis for Qualified Opinion section'. The basis section has 10 numbered paragraphs, covering consolidation, a 2023 share sale, revaluations, the claims ledger, sundry creditors, the share portfolio, sundry debtors, FDRs, fixed assets and premium. There are also six emphasis-of-matter paragraphs and one key audit matter on premium deposits.

How much does Eastern Insurance hold in bank deposits?

Fixed deposits were Tk 1,204.3m at end-2025, which the auditor describes as 563 accounts in 46 banks. It names Tk 263.9m in Union Bank, Exim Bank, First Security Islami Bank, Global Islami Bank and Social Islami Bank, with no impairment recognised.

What is Eastern Insurance's combined ratio?

68.1% in 2025 and 104.2% in 2024, measured as net claims plus management expenses (including stamps) plus agency commission less reinsurance commission, over net premium. Net claims were negative in 2025. The company's own 2024 report prints a combined ratio of 124.10% without a definition.

What dividend did Eastern Insurance pay for 2025?

15% cash, Tk 1.50 a share, 52.3% of company EPS. The record date was 16-Jun-2026 and DSE posted the disbursement on 12-Aug-2026. The company has paid a cash dividend for every year from 2016 to 2025.

Who are Eastern Insurance's related parties?

Note 32 lists Uttara Group of Companies (insurance, Tk 35,875,362), M/S Rahim Steel Mills Limited (insurance, Tk 23,679,167), EIC Securities Limited (share premium, Tk 206,932,050), and Uttara Motors Ltd, Sunman Group of Companies and Uttara Finance and Investment Ltd at Nil.

Why is Eastern's NAV per share different from equity per share?

Note 28 computes NAV as total assets less a 'Total Liabilities' figure that leaves out the Tk 84.0m balance of funds, giving Tk 49.63. Shareholders' equity of Tk 2,055.5m over 43.11m shares is Tk 47.68.

Sources

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