Federal Insurance financial analysis: qualified 2025 audit over Tk 117m agent balance (Oct 2026)

Investment considerations: qualified 2025 audit opinion, EPS Tk 1.10, combined ratio 68.7%, nine-month 2026 EPS Tk 1.16

What it is. Federal Insurance PLC (DSE: FEDERALINS) is a Dhaka general insurer incorporated on 11 November 1987 and listed on the Dhaka Stock Exchange from 26 June 1995 [1 p.22]. It writes fire, marine cargo, marine hull, motor and miscellaneous accident business [1 p.55]. Its name changed from Federal Insurance Company Ltd. with effect from 24-Feb-2025 [9]. It has 71,039,643 shares of Tk 10 [1 p.10]. The company states that 'The sponsor shareholding is 31.59% against 60% as required by insurance act 2010 section 21(3) and schedule 1' [1 p.31].

Where it stands. Gross premium was Tk 615.4m in 2025, down 4.8% from Tk 646.2m, and net premium was Tk 341.4m, down 10.1% from Tk 380.0m [1 p.55] [1 p.14] [13]. Underwriting profit was Tk 136.2m against Tk 152.5m [1 p.14]. Profit after tax was Tk 78.2m (EPS Tk 1.10) against Tk 71.8m (EPS Tk 1.01) [1 p.12]. On one combined-ratio definition used for every insurer in this note, the 2025 ratio was 68.7%, against 61.9% in 2024 [13]. The auditor, Toha Khan Zaman & Co., gave a qualified opinion on the 2025 accounts over an 'Agent Balance' of BDT 117,058,509 [1 p.4]. For the first half of 2026 the company reported profit after tax of Tk 71.8m against Tk 51.0m [7 p.1]. DSE-announced nine-month 2026 EPS was Tk 1.16 against Tk 0.85 [9]. The shares closed at Tk 27.1 on 29-Oct-2026, against Tk 21.1 a year earlier [8] [13].

Sources of shareholder returns. Underwriting is the larger source of profit. Underwriting profit was Tk 136.2m in 2025, 110.2% of pre-tax profit, and interest, dividend and other non-operating income was Tk 34.5m, 27.9% of pre-tax profit; Tk 47.0m of expenses not charged to any class are deducted below [1 p.12] [13]. Marine cargo produced Tk 103.9m of the Tk 136.2m underwriting profit (76.3%) [1 p.55] [13]. Return on average equity was 8.5% in 2025 and ranged from 4.7% (2018) to 11.1% (2020) over 2018-2025 [13]. Net operating cash flow was 0.09 times profit after tax in 2025 and minus 0.29 times in 2024 [13]. The board recommended a 10% cash dividend for 2025, Tk 71.0m, which is 90.9% of 2025 profit after tax [1 p.50] [13].

• Agent Balance of BDT 117,058,509: the auditor's basis for the qualified opinion. The FY2026 audited accounts are not in the corpus at 1-Nov-2026.
• Loss allowance on doubtful advances: note 21.02 states the company 'plans to recognize the remaining loss allowance over a period of five (5) years, commencing in 2025'; note 21.03 says 'within (5) five years commencing from 2024'.
• Amount due from SBC: Tk 563.2m at 31-Dec-2025 and Tk 568.1m at 30-Jun-2026 for all insurers combined; no ageing is printed.
• Agency commission: Tk 76.0m in 2025, Tk 49.2m in H1 2025 and nil in H1 2026 (Q2 2026 statement). Separately, TBS reported on 24-Dec-2025 that IDRA ended non-life commission payments; the filings do not link them.
• Sponsor shareholding: 31.59% against the 60% that the company states is required; the filings give no plan or date.

Business: fire 48.5% of 2025 gross premium, marine cargo 29.0%, miscellaneous 10.2%, motor 9.1%, hull 3.1%

How it makes money. A Bangladeshi general insurer collects premium, cedes part of each risk to reinsurers (who pay a commission back), sets aside a reserve for the unexpired part of each policy, and pays claims, agency commission and management expenses from the rest. Federal Insurance provides for unexpired risks '@ 40% on all business except on marine hull & aviation business for which provision was made @ 100%' [1 p.23]. Management expenses are allocated to each class 'on the basis of proportionate of gross net premium earned' [1 p.24]. The class revenue accounts add up to the underwriting profit; interest, dividends and other income, less expenses not charged to any class, give pre-tax profit [1 p.12].

Classes. Fire wrote Tk 298.4m of gross premium in 2025, 48.5% of the total, and the company kept 45.8% of it after reinsurance [1 p.55] [13]. Marine cargo wrote Tk 178.7m (29.0%) and kept 72.7% [1 p.55] [13]. Miscellaneous accident wrote Tk 63.1m (10.2%) and kept 27.8%; motor wrote Tk 56.2m (9.1%) and kept 91.5%; marine hull wrote Tk 19.1m (3.1%) and kept 30.5% [1 p.55] [13]. The underwriting result by class: marine cargo made Tk 103.9m, motor Tk 14.1m, miscellaneous Tk 9.1m, fire Tk 5.3m and hull Tk 3.8m [1 p.55].

Public-sector business and SBC. Public-sector business is shared between SBC and the private insurers; note 34 states that 'Regarding coinsurance business 50% is underwritten by SBC and the balance equally by all the private sector insurance companies' [1 p.48]. Federal Insurance's public-sector business was Tk 108.6m in 2025, 17.6% of gross premium, against Tk 101.0m (15.6%) in 2024 [1 p.48] [2 p.180] [13]. The share was the highest of 2019-2025 [13]. Premium ceded to reinsurers was Tk 274.0m in 2025, 44.5% of gross premium, against Tk 266.3m (41.2%) in 2024 [1 p.55] [13]. Note 20.01 describes the SBC balance as 'the cumulative balance due to them as at 31 December 2025 on account of re- insurances business after adjusting commission and claims settled on their behalf' [1 p.39].

Nine years of premium. Gross premium rose from Tk 441.7m in 2017 to a high of Tk 678.1m in 2022, then fell in each of 2023 (Tk 664.7m), 2024 (Tk 646.2m) and 2025 (Tk 615.4m) [5 p.7] [2 p.77] [1 p.12] [4 p.56]. Annual growth ranged from minus 6.1% (2020) to plus 19.9% (2019) [13]. Net premium peaked at Tk 393.6m in 2023 and fell to Tk 341.4m in 2025; the 10.1% fall in 2025 is the largest of 2018-2025 [13]. Retention ranged from 54.8% (2019) to 59.4% (2018) [13]. The 2021 gross premium is printed as Tk 646.23m in both the 2022 and 2024 reports, the same rounded figure as 2024 [4 p.56] [2 p.77].

Underwriting: 2025 profit Tk 136.2m, claims ratio 22.4%, management expenses 44.3% of net premium

Claims. Net claims were Tk 76.4m in 2025 against Tk 82.5m in 2024 [1 p.14]. The build-up in the consolidated revenue account is claims paid of Tk 93.6m, plus outstanding claims at the year-end of Tk 37.6m, less Tk 54.9m outstanding at the start [1 p.14]. The auditor's key audit matter gives claims paid in the year as BDT 205,057,799, against BDT 222,610,311 in 2024 [1 p.6]; that figure is before reinsurance recoveries and differs from the Tk 93.6m in the revenue account. Fire accounted for Tk 66.1m of the 2025 net claims, 48.4% of fire net premium [1 p.55] [13]. Marine hull net claims were minus Tk 7.0m [1 p.55]. Hull outstanding claims were Tk 4.0m at 31-Dec-2025 (Tk 5.0m a year earlier) [1 p.18]. The claims ratio on net premium was 22.4% in 2025 against 21.7% in 2024 [13].

Two printed net-claims figures. The 2024 annual report's five-year table prints 'Net Claims' of Tk 72.96m for 2024 and Tk 91.60m for 2022 [2 p.77]. The 2024 revenue account and the 2024 key highlights give Tk 82.48m for 2024 [1 p.14] [2 p.4], and the 2022 report gives Tk 88.90m for 2022 [4 p.56]. Tk 72.96m equals the 2024 'Claim Paid during the year' line [1 p.14]. This note uses each year's own-report figure in the history (Tk 82.48m for 2024, Tk 88.90m for 2022) and flags the conflict.

By class. Marine cargo underwriting profit was Tk 103.9m in 2025 against Tk 103.0m, on net premium that fell from Tk 176.0m to Tk 129.9m [1 p.12] [1 p.16]. Fire profit was Tk 5.3m against Tk 5.5m [1 p.12]. Miscellaneous profit was Tk 9.1m (2024: Tk 18.7m) [1 p.19]. Miscellaneous net premium was Tk 17.6m (2024: Tk 28.3m) [1 p.19]. Hull profit fell to Tk 3.8m from Tk 10.9m, and motor profit was Tk 14.1m against Tk 14.5m [1 p.12].

Expenses. Management expenses charged to the revenue accounts were Tk 151.4m in 2025, up 9.1% from Tk 138.8m, of which salary and allowances were Tk 118.9m against Tk 108.5m [1 p.48] [13]. They were 44.3% of net premium against 36.5% [13]. Agency commission was Tk 76.0m, 12.4% of gross premium, against Tk 82.0m (12.7%) [1 p.14] [13]. A further Tk 47.0m of expenses sits in the profit and loss account, including Tk 21.7m of expenses not applicable to any fund, Tk 16.2m of depreciation and a Tk 5.0m loss allowance for expected credit losses [1 p.12]. The filings in the corpus give no comparison between management expenses and an IDRA allowable limit. The auditor reports under section 63(2) of the Insurance Act 2010 that 'all expenses of management wherever incurred and whether incurred directly or indirectly, in respect of insurance business of the company transacted in Bangladesh during the year under report have been duly debited to the related Revenue Accounts and the Statement of Profit and Loss and Other Comprehensive Income of the Company' [1 p.9].

Combined ratio. We use one definition for Federal Insurance and each peer: net claims plus revenue-account management expenses (including insurance stamps) plus agency commission, less reinsurance commission including any profit commission, over net premium. Federal Insurance's management expenses in note 32 already include policy stamp expenses of Tk 4.8m (2025) and Tk 3.7m (2024) [1 p.48]. On that basis the combined ratio was 68.7% in 2025 and 61.9% in 2024 [13]. The underwriting margin also includes the change in the unexpired-risk reserve: a release of Tk 29.4m in 2025 against Tk 7.8m in 2024, as the reserve fell from Tk 141.6m to Tk 112.2m [1 p.14] [13]. Underwriting profit was 39.9% of net premium in 2025 against 40.1% in 2024 [13].

Investments: Tk 198.7m of fixed deposits across 43 institutions, Tk 88.0m of treasury bonds, interest income Tk 32.7m

The portfolio. At 31-Dec-2025 Federal Insurance held Tk 198.7m of fixed deposits (Tk 288.0m a year earlier), Tk 113.3m in short-term deposits, Tk 88.0m of Bangladesh Government treasury bonds as the statutory deposit (Tk 75.3m) and Tk 19.3m of listed shares [1 p.41] [1 p.35] [1 p.11]. Current accounts were overdrawn by a net Tk 24.9m, including Tk 10.7m at NCC Bank's Panthapath branch and Tk 15.2m at Al-Arafah Islami Bank's Motijheel corporate branch [1 p.42]. Cash and cash equivalents fell from Tk 367.1m to Tk 288.8m during 2025 [1 p.20]. Fixed deposits, treasury bonds and shares together were 19.7% of total assets at 31-Dec-2025, against 25.0% a year earlier [13].

Where the deposits sit. Annexure-E lists 48 banks and finance companies, of which 43 had a balance at the year-end [1 p.58] [13]. The largest was 'Islami Bank PLC.' at Tk 19.6m (9.9% of the total), followed by 'Bank Asia PLC.' at Tk 14.1m, 'Social Islami Bank PLC.' at Tk 14.1m, 'Al Arafah Bank PLC.' at Tk 12.3m and 'Mercantile Bank PLC.' at Tk 10.5m [1 p.58]. The schedule shows encashments of Tk 118.6m during the year [1 p.58]. The filings make no statement on the condition of any deposit-holding bank.

Income. Interest, dividends and rent were Tk 32.7m in 2025 against Tk 27.5m: interest on fixed deposits Tk 25.3m (Tk 21.1m), on treasury bonds Tk 7.2m (Tk 6.1m) and on bank and other balances Tk 0.2m [1 p.43]. Dividend income was Tk 0.7m, of which Tk 0.4m came from The ACME Laboratories Ltd. [1 p.43]. The share portfolio showed an unrealised loss of Tk 0.9m in 2025 against Tk 3.3m in 2024, and asset sales produced a gain of Tk 2.1m [1 p.12]. Total non-operating income was Tk 34.5m, the highest of 2017-2025 on the five-year-table basis; the earlier high was Tk 31.7m in 2023 [5 p.7] [2 p.77] [1 p.12] [13]. The policy note states that 'income on investment in shares is considered only on their receipt' [1 p.27].

Statutory deposit. Note 15 describes the Tk 88.0m as '10 (Ten) and 15 (Fifteen) years Bangladesh Govt. Treasury Bond at Cost kept with Mercantile Bank Limited' under section 23(B) of the Insurance Act 2010; Tk 12.7m was bought in 2025 [1 p.35]. The 2024 directors' report stated that 'As per SRO No. 353/Law/2019, there is a mandatory investment requirement of 7.5% in government securities. While the Company has invested BDT 78 million, which is slightly below the threshold, necessary steps are being taken to invest in treasury bonds promptly' [2 p.48]. The 2024 balance sheet shows Tk 75.3m of treasury bonds [1 p.11]; the 2025 statements in the corpus contain no statement on the 7.5% requirement.

Ratios 2017-2025: ROE 8.5% in 2025 within a 4.7%-11.1% range; equity 59.6% of assets

Returns. Return on average equity was 8.5% in 2025, 7.8% in 2024 and 7.4% in 2023 [13]. Over 2018-2025 it ranged from 4.7% (2018) to 11.1% (2020) [13]. Return on average assets was 5.1% in 2025 within a 2.5% (2018) to 6.2% (2020) range [13]. Profit after tax was highest in 2021 at Tk 96.4m; the 2025 figure of Tk 78.2m was the highest since 2021 [13]. Equity is taken from the net-asset notes of each year's report [6 p.78] [5 p.95] [4 p.118] [3 p.160] [1 p.49].

Underwriting. Underwriting profit as a share of net premium ranged from 29.4% (2018) to 46.3% (2021) and was 39.9% in 2025 [13]. The net-claims ratio ranged from 4.2% (2017) to 26.4% (2023) and was 22.4% in 2025 [13]. Underwriting profit exceeded pre-tax profit in every year; in the profit and loss account, expenses not charged to any class are deducted after underwriting profit [1 p.12]. The ratio ranged from 110.2% (2025) to 167.3% (2018) [13].

Cash conversion. Net operating cash flow was Tk 6.9m in 2025 (Tk 0.10 a share) and minus Tk 20.7m in 2024 (minus Tk 0.29 a share) [1 p.49]. It was Tk 267.5m in 2020 and Tk 192.7m in 2021 [5 p.95] [4 p.118]. In 2025 premium collections were Tk 445.1m against Tk 474.4m, and income tax paid was Tk 50.8m [1 p.20]. The reconciliation shows a Tk 55.0m increase in amounts due from other insurers and a Tk 41.6m increase in sundry debtors in 2025 [1 p.49]. DSE's 30-Apr-2025 post gave 2024 NOCFPS as Tk 0.05; the 2024 and 2025 annual reports print minus Tk 0.29 [9] [2 p.180] [1 p.49].

Leverage and tax. Equity was 59.6% of total assets at 31-Dec-2025, within a 53.6% (2017) to 62.6% (2022) range [13]. Net premium was 0.37 times equity in 2025; the 2017-2025 range was 0.36 (2017) to 0.43 (2019) [13]. The tax charge was 36.8% of pre-tax profit in 2025 and ranged from 29.0% (2019) to 40.1% (2023) [13]. The 2025 tax note gives a current tax of Tk 47.4m at a 37.5% rate [1 p.50].

Peers 2025: combined ratio 68.7% at Federal Insurance; 63.7% (PEOPLESINS) to 82.2% (KARNAPHULI) across the nine insurers compared

The set. The peers are eight Dhaka-listed general insurers with December year-ends and audited 2025 accounts: Karnaphuli, Peoples, Nitol, Islami, BGIC, Central, Eastland and Eastern. Each peer's auditor's opinion was read from the page image of its own 2025 report first [14 p.148] [16 p.256] [18 p.181] [20 p.98] [22 p.318] [24 p.3] [26 p.141] [28 p.3]. Two peers had qualified opinions (BGIC and Eastern) and one an adverse opinion (Central); Federal Insurance's is qualified [1 p.4].

One definition. For every company the combined ratio is net claims plus revenue-account management expenses (including insurance stamps; Eastland's Tk 2.48m and Eastern's Tk 3.49m of separately printed stamps are added) plus agency commission, less reinsurance commission including profit commission, over net premium, all for 2025 on the company basis [15 p.181] [17 p.264] [19 p.189] [21 p.110] [23 p.329] [25 p.11] [27 p.188] [29 p.22] [13]. On that basis Federal Insurance's 68.7% is number 4 of nine counting from the lowest; the range is 63.7% (PEOPLESINS) to 82.2% (KARNAPHULI) [13]. Federal Insurance's net premium of Tk 341.4m is the second smallest of the nine; Eastern's Tk 203.7m is the smallest [15 p.181] [17 p.264] [19 p.189] [21 p.110] [23 p.329] [25 p.11] [27 p.188] [29 p.22] [13].

Returns. Return on average equity, using each company's printed equity at 31-Dec-2024 and 31-Dec-2025, was 8.5% for Federal Insurance in 2025; across the eight peers it ranged from 3.7% to 13.2% [13]. The net-claims ratio was 22.4% for Federal Insurance, against -2.0% to 27.4% for the peers [13]. These comparisons are limited to the nine companies in the table.

Balance sheet and audit: qualified opinion, Tk 563.2m due from SBC, Tk 205.8m of advances and prepayments called doubtful

Audit opinion. The auditor's report is headed 'Qualified Opinion' and states: "In our opinion, except for the possible effects of the matters described in the Basis for Qualified Opinion section, the accompanying financial statements give a true and fair view of the Financial Position of the Federal Insurance PLC as at 31 December 2025 and its financial performance including cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the Companies Act 1994 and other applicable laws and regulations." [1 p.4] The report is signed by Md. Kamal Uddin, FCA, Senior Partner of Toha Khan Zaman & Co., dated 30 April 2026 [1 p.9].

Basis for Qualified Opinion (in full). "1. The Company has the long outstanding and uncollectable “Agent Balance” worth BDT 117,058,509 under Advance against others (under Note 21.02 of the financial statements). These advances have remained uncollected for several years; therefore, the asset is materially over-stated and are of doubtful of recovery." [1 p.4]

Other paragraphs. The report has no 'Other Matter' paragraph [1 p.4] [1 p.5] [1 p.6] [1 p.7] [1 p.8] [1 p.9]. Under 'Other Information' the auditor states 'We have nothing to report in this regard' [1 p.7]. DSE posted notices of a qualified opinion and emphasis-of-matter paragraphs for the 2024 accounts (21-May-2025) and the 2025 accounts (1-Jun-2026) [9]. All quotations in this note are taken from the page images of the auditor's report; the OCR text of page 4 differs from the image in the second emphasis-of-matter paragraph.

Doubtful advances (balances at 31-Dec-2025). Note 21.02 states that 'Advance against others consists of long-outstanding balances amounting to Tk. 134,744,952/- comprising Advance against Claim Payment: Misc. of Tk. 34,46,872/-, Agent Balance of Tk. 117,058,509/- and Collection Control Account of Tk. 14,239,571/-, which are considered doubtful of recovery' [1 p.40]. It adds that the company 'was unable to recognize the full amount of expected credit losses during the year' 'Due to prevailing circumstances in 2025, including the political environment in Bangladesh and a downturn in business operations' [1 p.40]; these are the company's statements. Note 21.03 states that prepaid expenses of Tk. 71,013,409.00 are 'doubtful of recovery' [1 p.41]. Each note shows a loss allowance of Tk 2.5m, the same as at 31-Dec-2024 [1 p.40] [1 p.41]. The profit and loss account shows a 'Loss Allowances for Expected Credit Losses' charge of Tk 5.0m in both 2025 and 2024 [1 p.12]; the notes do not reconcile that charge with the unchanged allowances. The Agent Balance was 12.6% of equity at 31-Dec-2025 [13].

SBC balance. The amount due from other insurers was Tk 568.1m at 31-Dec-2025, of which Sadharan Bima Corporation was Tk 563.2m (Tk 499.7m at 31-Dec-2024) [1 p.39]. The SBC balance was 60.8% of equity at 31-Dec-2025, against 54.4% a year earlier [13]. For the other insurers on the list, note 20.01 states that 'The above mentioned amounts except for SBC is long pending issues and management is in process to settle this issues and will make necessary arrangement or take allowances for loss if applicable in subsequent years' [1 p.39]. No ageing of the SBC balance is printed.

Tax. The provision for taxation was Tk 372.0m at 31-Dec-2025, after Tk 47.4m was added in the year and none adjusted [1 p.33]. Advance income tax was Tk 149.5m [1 p.39]. The deferred-tax note states that 'In different years litigation is pending in different stages for dispute with National Board of Revenue (NBR) regarding computation of tax liability and tax base assets value' [1 p.37]. The provision exceeded the advance tax by Tk 222.5m at 31-Dec-2025 [13].

Employee benefits. The gratuity provision was Tk 15.0m at 31-Dec-2025, and note 7 states that 'The company made past service cost for defined Employees Benefit Obligation (Gratuity) Tk. 51,95,700/- during the year and the said cost stands at Tk. 41,310,374' [1 p.32]. On the provident fund, the policy note states that 'the management of the Company decided not to contribute to the PF Account since long 2000' [1 p.24]. No WPPF expense was charged in 2025 against Tk 5.9m in 2024 [1 p.12]; the WPPF policy note refers to 'an ambiguity in establishment of Workers Profit Participation Fund (WPPF) in the Insurance Company' [1 p.27].

2026 so far: H1 profit after tax Tk 71.8m against Tk 51.0m; nine-month EPS Tk 1.16 against Tk 0.85 (DSE)

First half of 2026. Gross net premium income was Tk 305.8m against Tk 327.8m, 6.7% lower [7 p.1] [13]. Premium ceded was Tk 71.4m (H1 2025: Tk 92.9m) [7 p.1]. Net premium was Tk 234.4m (H1 2025: Tk 234.9m) [7 p.1]. Net claims rose to Tk 73.0m from Tk 54.1m; management expenses were Tk 90.9m against Tk 91.4m [7 p.1]. The statement shows agency commission of nil in H1 2026 against Tk 49.2m in H1 2025 [7 p.1]. Profit before tax was Tk 114.9m against Tk 81.6m and profit after tax Tk 71.8m against Tk 51.0m (EPS Tk 1.01 against Tk 0.72) [7 p.1].

Commission line. The Business Standard reported on 24-Dec-2025 that IDRA ended commission payments in the non-life insurance sector [10]. Federal Insurance's H1 2026 statement shows no agency commission [7 p.1]. The filings do not link the two. On the combined-ratio definition used in this note, applied to the half-year figures before the unexpired-risk movement, the ratio was 54.4% in H1 2026 against 65.4% in H1 2025 [13].

Balance sheet at 30-Jun-2026. Net asset value was Tk 998.1m (Tk 14.05 a share) at 30-Jun-2026 [7 p.1]. The statement of changes in equity shows no cash dividend deducted by that date [7 p.1]; the 2025 dividend was disbursed later (DSE post 21-Sep-2026) [9]. The amount due from other insurers was Tk 568.1m and sundry debtors Tk 411.9m, against Tk 363.7m at 31-Dec-2025 [7 p.1]. Outstanding claims were Tk 46.6m against Tk 37.6m [7 p.1]. Net operating cash flow was Tk 58.1m (Tk 0.82 a share) against Tk 26.0m [7 p.1].

Third quarter. DSE posted the Q3 2026 results on 1-Nov-2026: EPS of Tk 0.19 for July-September 2026 against Tk 0.13, nine-month EPS of Tk 1.16 against Tk 0.85, nine-month NOCFPS of Tk 1.01 against Tk 0.35, and NAV per share of Tk 13.20 at 30-Sep-2026 [9]. The Q3 2026 interim statements are not in the corpus at 1-Nov-2026. The posted figures do not add up exactly: H1 EPS of Tk 1.01 plus Q3 EPS of Tk 0.19 is Tk 1.20, against nine-month EPS of Tk 1.16; for 2025, Q1 EPS of Tk 0.34 plus Q2 EPS of Tk 0.29 is Tk 0.63, against H1 EPS of Tk 0.72 [9] [13]. DSE posted no correction notice for FEDERALINS between 1-Nov-2024 and 1-Nov-2026 [9].

NAV per share, figure by figure. The DSE posts give NAV per share of Tk 12.94 (31-Dec-2024), Tk 13.28 (31-Mar-2025), Tk 13.66 (30-Jun-2025), Tk 12.79 (30-Sep-2025), Tk 13.04 (31-Dec-2025), Tk 13.50 (31-Mar-2026), Tk 14.05 (30-Jun-2026) and Tk 13.20 (30-Sep-2026) [9]. EPS was Tk 1.01 for 2024 and Tk 1.10 for 2025 [1 p.49].

Governance: 19 directors at 31-Dec-2025, sponsors 31.59%, no related-party transactions reported, 10% cash dividend for 2025

Board. Note 45 lists 19 directors 'as on 31.12.2025' [1 p.51] [1 p.52] [1 p.53]. The chairman is Mr. Enamul Hoq, '(Representing M/s Paradise Corporation (Pvt.) Ltd.)', and the vice chairman is Mr. Elias Siddiquee [1 p.51]. Three directors are marked '(Independent Director)': Mr. Md. Mahfuzur Rahman (chairman, NRC & PPC Committee), Mr. Md. Giash Uddin, FCA (chairman, Audit Committee & RMC) and Ms. Abeda Akhter (chairman, Investment Committee) [1 p.52]. The 2024 annual report named Mr. Md. Rafiqul Islam as an independent director and NRC chair [2 p.86]; he is not on the 31-Dec-2025 list [1 p.52]. The 2024 report spells the Executive Committee chairman 'Mr. Zainul Abedin Jamal' [2 p.109]; the 2025 list prints 'Mr. Jainul Abedin Jamal' [1 p.52].

Attendance and pay. The 2025 statements in the corpus do not print board attendance by director. Note 43 shows board meeting fees and expenses of Tk 1,741,400 in 2025 against Tk 2,050,400 in 2024, and payments to senior executives of Tk 39,813,315 against Tk 42,937,523 [1 p.51]. The 2024 annual report states that directors 'receive a meeting attendance fee of BDT 8,000/- per meeting' [2 p.48]. For 2024 it lists ten Executive and Investment Committee meetings with attendance of 13, 13, 14, 9, 9, 13, 10, 10, 13 and 12 [2 p.109], and four Audit Committee meetings with attendance of 4, 3, 4 and 5 [2 p.106]. Per-director attendance for 2025 is not in the corpus at 1-Nov-2026.

Key management. The 2025 statements are signed by Masud Hossain (Chief Financial Officer), AMM Mohiuddin Chowdhury (Chief Executive Officer), Tahreer Nawaz (Director), Elias Siddiquee (Vice Chairman) and Enamul Hoq (Chairman, Board of Directors) [1 p.12]. The H1 2026 statement adds Sk. Md. Anwar Uddin as Company Secretary [7 p.1].

Related parties. Note 38 states: 'During the reporting year, the company has not carried on any transaction with related parties as per provisions of IAS 24- Related Party Disclosure' [1 p.50]. Note 45 lists the other entities in which each director holds a position, including Central Hospital Ltd. (Mr. Enamul Hoq and Mr. Elias Siddiquee are both directors) and Impel Share & Securities Ltd. (Mr. Jia Uddin, general manager; Mrs. Mamtaj Begum is listed as managing director of 'Impel Shares & Securities Ltd.'), Sino-Bangla Industries Ltd. (Mr. Enamul Hoq, vice chairman; Mr. Md. Mahfuzur Rahman, independent director) and Eden Multi-Care Hospital (Mr. Enamul Hoq, chairman of 'Eden Multi-Care Hospital Ltd.'; Mr. Jainul Abedin Jamal, director of 'Eden Multicare Hospital ltd.'; Mrs. Hasina Banu, director of 'Eden Multi-Care Hospital') [1 p.51] [1 p.52] [1 p.53]. The filings give no amounts for any related party.

Ownership. Note 4.02 splits paid-up capital into sponsors' contribution of 2,24,38,973 shares (Tk 224.4m) and public issue of 4,86,00,670 shares (Tk 486.0m) [1 p.30]. The sponsors' line was Tk 228.5m a year earlier [1 p.30]. The company states that the sponsors and directors hold 'more than the 30% shares of the paid up capital required under gazette notification no. BSEC/CMRRCD/2009- 193/217/Admin/90' [1 p.31]. DSE posted on 27-Apr-2025 that sponsor Mr. Md. Sabirul Hoque died on 16-Jan-2025 and that his 1,431,365 shares would be transmitted to his nominee, Mr. Rakibul Hoque [9].

Dividends. The board recommended a 10% cash dividend for 2025 on 30-Apr-2026, with a record date of 16-Jun-2026 and an AGM on 17-Aug-2026 [9] [1 p.50]. DSE posted the disbursement on 21-Sep-2026 [9]. For 2024 the dividend was also 10% cash (record date 16-Jun-2025, AGM 14-Aug-2025, disbursement posted 18-Sep-2025) [9]. The 2025 cash dividend of Tk 71.0m equals 90.9% of 2025 profit after tax [13]. The cash flow statement shows dividends paid of Tk 71.0m in 2025 and Tk 71.8m in 2024 [1 p.20]. The five-year tables print a 'Rate of Dividend' of 5% for 2016-2019 and 10% for 2020-2024 without splitting cash and stock [5 p.7] [2 p.77]. The weighted share count rose from 61,366,716 in 2017 to 71,039,643 from 2021 [6 p.78] [4 p.118].

DSE news, 1-Nov-2024 to 1-Nov-2026. The 34 posts cover quarterly and annual results, board-meeting notices, record dates and spot-market notices, two dividend disbursements, two NCR rating results, two auditor-opinion notices, the sponsor share transmission and the name change [9]. They include no board approval of capital expenditure, expansion, acquisition or a rights issue [9]. Note 21.02 carries a Tk 1.0m 'Contribution to BIA for Purchase of Land at Uttara' from before 2025 [1 p.40].

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)' are built from every printed precedent we found; no date has been notified for them. The Q3 2026 results are already announced and are covered in the recent-quarters section.

Basis for the dates. The 2022, 2023 and 2024 reports carry CEO and CFO declarations on the financial statements dated 27 April 2023, 28 April 2024 and 29 April 2025 [4 p.71] [3 p.113] [2 p.133]. DSE notices posted on 23-Apr-2025 and 26-Apr-2026 announced board meetings for the annual accounts on 29-Apr-2025 and 30-Apr-2026; the Q1 accounts were taken at the same meetings [9]. Note 2.02 states the 2025 statements 'were authorized for issue by the Board of Directors of the Company on 30 April 2026' [1 p.22]. The range for the annual accounts therefore rests on four years; the Q1, rating, record-date and AGM ranges rest on two years each.

LDC graduation. The Daily Star and The Business Standard reported on 30-Oct-2026 that Bangladesh's graduation from least-developed-country status is now on 24-Nov-2029 [11] [12]. The Federal Insurance filings in the corpus do not mention it.

Items with no date. The filings give no date for recovering the Agent Balance, for the remaining loss allowance (notes 21.02 and 21.03 give five-year periods from 2025 and from 2024), for settling the SBC balance or the NBR tax disputes, or for raising the sponsor shareholding to 60% [1 p.40] [1 p.41] [1 p.39] [1 p.37] [1 p.31].

Risks: each item and the line it relates to

Each row is a fact from the filings with the line it relates to; none is a forecast. The auditor's qualification concerns one asset, the Agent Balance, which the company itself includes in Tk 134.7m of advances it calls doubtful [1 p.4] [1 p.40]. The SBC balance rose by Tk 63.5m during 2025 [1 p.39]. Net operating cash flow was Tk 6.9m in 2025 and minus Tk 20.7m in 2024 [1 p.20]. Dividends paid were Tk 71.0m in 2025 and Tk 71.8m in 2024 [1 p.20]. The company reports no bank borrowings [1 p.50].

History 2017-2025 and market data

Figures for 2017-2020 come from the 2020 annual report's five-year table and for 2020-2024 from the 2024 report's table; 2025 is from the 2025 statements [5 p.7] [2 p.77] [1 p.12]. The corpus document keyed FEDERALINS_ANNUAL_2021 is the Annual Report 2020: its cover page and footers read 'Annual Report 2020' and its tables end in 2020 [5 p.7] [5 p.95]. No FY2021 annual report is in the corpus; 2021 figures come from the comparatives in the 2022 report [4 p.56] [4 p.118]. The 2023 key-highlights page prints net premium of Tk 333.55m, against Tk 393.55m in the 2024 five-year table [3 p.4] [2 p.77]. The 2020 table prints 2018 equity of Tk 738.81m, against Tk 739,373,148 in the 2018 net-asset note [5 p.7] [6 p.78]. EPS and NAV per share are as printed in each year's own report and are not restated for later bonus shares; the 2019 report restated 2018 EPS to Tk 0.50 and NAV per share to Tk 10.93 [6 p.78].

Market data (facts only). The shares closed at Tk 27.1 on 29-Oct-2026, 28.4% above the Tk 21.1 close on 29-Oct-2025 [8] [13]. On DSE trading-day closes from 30-Oct-2025 to 29-Oct-2026, the low was Tk 17.5 on 16-Nov-2025 and the high was Tk 31.8 on 16-Aug-2026; neither was tied [8]. A 1-Nov-2026 bar closed at Tk 27.0 [8]. Market value at Tk 27.1 was Tk 1.93bn [13]. That is 24.6 times 2025 EPS, 19.2 times trailing EPS to September 2026 (derived: nine-month 2026 EPS plus Q4 2025 EPS of Tk 0.25), 2.05 times NAV per share at 30-Sep-2026, and a 3.7% yield on the 2025 dividend [13]. Note 4.02.03 gives DSE prices of Tk 18.60 on 29 December 2025 and Tk 18.80 a year earlier [1 p.30].

FAQ

Why is Federal Insurance's 2025 audit opinion qualified?

The auditor, Toha Khan Zaman & Co., states that the company has a long outstanding and uncollectable 'Agent Balance' of BDT 117,058,509 under advance against others, that it has remained uncollected for several years, and that the asset is materially over-stated. The report also has five emphasis-of-matter paragraphs.

How profitable was Federal Insurance in 2025?

Profit after tax was Tk 78.2m (EPS Tk 1.10) against Tk 71.8m (EPS Tk 1.01) in 2024. Underwriting profit was Tk 136.2m and non-operating income Tk 34.5m. Return on average equity was 8.5%.

What is Federal Insurance's combined ratio?

68.7% in 2025 and 61.9% in 2024, measured as net claims plus management expenses (including stamps) plus agency commission less reinsurance commission, over net premium. The peer section applies the same definition to each peer.

How much does Federal Insurance have due from SBC?

Tk 563.2m at 31-Dec-2025 against Tk 499.7m a year earlier, 60.8% of equity. The note describes it as the cumulative reinsurance balance after adjusting commission and claims settled; no ageing is printed.

What dividend did Federal Insurance pay for 2025?

10% cash, Tk 1.00 a share, Tk 71.0m in total, which is 90.9% of 2025 profit after tax. The record date was 16-Jun-2026, the AGM was on 17-Aug-2026 and DSE posted the disbursement on 21-Sep-2026.

Who are Federal Insurance's sponsors and directors?

Note 45 lists 19 directors at 31-Dec-2025, chaired by Mr. Enamul Hoq with Mr. Elias Siddiquee as vice chairman and three independent directors. The company states that sponsors hold 31.59% against 60% required by the Insurance Act.

Where does Federal Insurance keep its deposits?

At 31-Dec-2025 it held Tk 198.7m of fixed deposits with 43 banks and finance companies, the largest Tk 19.6m with Islami Bank PLC., plus Tk 113.3m of short-term deposits and Tk 88.0m of treasury bonds. It reports no bank borrowings.

Sources

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