Islami Insurance Bangladesh financial analysis: 67.7% combined ratio and management expenses above the Section 62 limit (Oct 2026)

A Tk 688m-premium takaful insurer: 2025 profit Tk 125.13m, combined ratio 67.7% and four emphasis-of-matter paragraphs

What it is. Islami Insurance Bangladesh Limited (DSE: ISLAMIINS) was incorporated on 25 October 1999 and received permission to start insurance business on 29 December 1999 [1 p.115]. The directors' report describes it as the first Islamic insurance company approved in Bangladesh, to 'introduce Islamic Sharia-based insurance' [1 p.43]. It writes fire, marine, motor and miscellaneous general insurance [1 p.115]. In 2025 it wrote Tk 688.22m of gross premium, including Tk 98.62m of its proportional share of government (public-sector) business, and kept Tk 503.96m after reinsurance [1 p.43] [1 p.134].

Where it stands. Gross premium rose 1.9% in 2025 and net premium 4.9% [1 p.47] [16]. Underwriting profit fell 11.2% to Tk 123.51m, investment and other income rose 27.4% to Tk 96.32m, and profit before tax was Tk 166.59m against Tk 168.01m [1 p.106] [16]. Profit after tax fell 10.9% to Tk 125.13m, with EPS of Tk 3.04 against Tk 3.41, after current tax rose to Tk 38.93m from Tk 24.82m [1 p.106] [1 p.107]. Return on average equity was 13.2% [16]. The board recommended a 16% cash dividend (Tk 1.60 a share) for 2025, against 20% for 2024 [1 p.108] [1 p.47]. DSE-announced figures put nine-month 2026 EPS at Tk 3.20 against Tk 1.95 [12].

What drives shareholder returns. Profit has two sources. Underwriting profit was Tk 123.51m in 2025; investment and other income was Tk 96.32m, 57.8% of pre-tax profit, the highest share in the 2016-2025 series [1 p.106] [16]. On one combined-ratio definition (net claims incurred plus management expenses plus agency commission less reinsurance commission, over net premium) the 2025 figure was 67.7% [16]. Claims took 3.9 points of that; expenses net of reinsurance commission took 63.9 points [16]. Note 4.01 describes the reserve for exceptional losses as appropriated 'out of current years profit about 10% of premium earned'; the Tk 61.00m set aside in 2025 was 8.86% of premium, an appropriation of profit rather than an expense [1 p.123]. Cash payout was 52.6% of 2025 EPS [16].

• Is the land depreciation reversed? Signpost: the FY2026 accounts; management wrote that 'necessary adjustment will be given in next year Financial Statement for the year 2026' (p.138).
• Do management expenses come within the IDRA limit? Signpost: the FY2026 auditor's report (board meeting inferred Apr-Jun 2027; no date notified).
• Is agency commission nil for all of 2026, as in H1 2026? Signpost: the FY2026 consolidated revenue account.
• When is the postponed 26th AGM held, and is the 16% dividend approved? Signpost: a DSE notice; none had been posted by 1-Nov-2026.
• Is the gratuity fund given separate books and an audit? Signpost: the FY2026 auditor's report.

Marine is 47.5% of gross premium and fire 39.1%; the company keeps 73.2% of what it writes

How it makes money. A Bangladeshi general insurer collects premium, cedes part of each risk to reinsurers (who pay back a commission), sets aside a reserve for unexpired risk, and pays claims, agency commission and management expenses from the rest; what remains is the underwriting profit [1 p.110]. Islami Insurance reserves 40% of net premium for unexpired risks on marine cargo and 100% on marine hull [1 p.112]. Investment income on deposits, treasury bonds and shares is earned outside the revenue accounts and added in the profit and loss account [1 p.106].

Takaful framing. The directors' report states that 'a separate policy needs to be prepared' for Islamic insurance under Section 7 of the Insurance Act 2010, that IDRA 'has proposed a draft of Islamic Insurance Rules, 2024', and that a draft Takaful Regulation submitted to IDRA on 9 October 2012 'is under process' [1 p.43]. The accounts themselves are prepared under the Insurance Act and IFRS like any general insurer's, with the same revenue-account format [1 p.115]. Deposits are split between 'Term Deposits in Shariah-Based Islamic Banks' (Tk 255.85m) and 'Fixed Deposits in Conventional Banks' (Tk 224.00m) [1 p.44].

Classes. Marine brought Tk 326.96m of gross premium in 2025 (47.5%), fire Tk 269.43m (39.1%), miscellaneous Tk 63.36m (9.2%) and motor Tk 28.46m (4.1%) [1 p.129] [16]. Form XL splits marine into cargo (Tk 298.99m own business) and hull (Tk 0.77m own business) [1 p.134]. Underwriting results differed widely by class: fire made Tk 99.14m, marine Tk 32.98m, motor Tk 19.91m, and miscellaneous lost Tk 28.52m [1 p.111] [1 p.112] [1 p.113] [1 p.114]. The directors write of miscellaneous that 'it has become difficult to earn profit due to high expenses in the reinsurance sector' and that 'in order to maintain other classes of business of the same insured, the risk of miscellaneous insurance has to be taken' [1 p.44].

Fire and motor claims were credits. The fire revenue account shows net claims of minus Tk 37.60m: Tk 14.98m paid, plus Tk 108.61m outstanding at year-end, less Tk 161.19m outstanding a year earlier [1 p.111]. Motor shows minus Tk 6.24m, with 'paid during the year' printed as a negative Tk 11.46m [1 p.113]. Marine net claims rose to Tk 45.60m from Tk 3.73m, and marine outstanding claims to Tk 107.21m from Tk 63.61m [1 p.112]. Miscellaneous paid Tk 17.81m against Tk 0.12m in 2024 [1 p.114]. Fire's 2025 result of Tk 99.14m compares with Tk 42.41m in 2024; marine's Tk 32.98m compares with Tk 93.65m [1 p.111] [1 p.112].

Public-sector business. Of 2025 gross premium, Tk 98.63m was public-sector business and Tk 589.59m own business [1 p.134]. On public-sector business the company ceded Tk 96.31m of reinsurance and kept Tk 2.31m net; on public-sector miscellaneous it ceded Tk 46.06m against Tk 44.68m written [1 p.134]. Reinsurance commission on public-sector business was Tk 11.24m, out of Tk 35.81m in total [1 p.134]. Own-business retention was 85.1% (Tk 501.65m of Tk 589.59m) [1 p.134] (derived).

Reach. The 2025 report shows a branch map with district locations [1 p.139]. The auditor states that proper returns 'have been received adequately from branches but the branches have not been visited by us' [1 p.103].

Combined ratio 67.7% in 2025 on one definition; across 2018-2025 the range is 64.4% (2021) to 84.5% (2023)

One definition. We compute the combined ratio as net claims incurred plus expenses of management (revenue accounts) plus agency commission, less commission on reinsurance ceded, all over net premium, from the consolidated revenue account of each year [6 p.83] [4 p.85] [3 p.89] [1 p.110] [16]. The same definition is used for the peers below. It excludes the change in the unexpired-risk reserve, so it is not the same as one minus the underwriting margin.

The series. The combined ratio was 72.2% in 2018, 72.7% in 2019, 69.4% in 2020, 64.4% in 2021, 82.3% in 2022, 84.5% in 2023, 68.1% in 2024 and 67.7% in 2025 [16]. Recomputed across the whole 2018-2025 series, the highest claims ratio was 16.9% (2020) and the lowest 2.2% (2021); 2025 was 3.9% [16]. The highest combined ratio was 84.5% (2023) and the lowest 64.4% (2021) [16]. Claims are a small part of the total in every year; the net expense ratio ranged from 52.6% (2020) to 75.6% (2022) [16].

Management expenses. Expenses of management in the revenue accounts were Tk 155.81m in 2018, Tk 419.66m in 2021 and Tk 381.70m in 2022, then Tk 264.52m in 2023, Tk 242.09m in 2024 and Tk 263.84m in 2025 [6 p.83] [4 p.85] [3 p.89] [1 p.110]. As a share of gross premium they were 37.5% in 2018, 45.9% in 2021, 45.8% in 2022 and 38.3% in 2025 [16]. Note 24 allocates Tk 258.99m of 2025 management expenses to the classes in proportion to gross premium and adds Tk 4.85m of insurance stamp expenses [1 p.129]. A further Tk 53.24m of management expenses 'not applicable to any particular fund' sits in the profit and loss account, including Tk 15.58m depreciation, Tk 13.36m right-of-use amortisation and Tk 6.54m finance cost on leases [1 p.106].

Section 62. The auditor's second emphasis paragraph reads: 'It was noted that the management expenses incurred during the year exceeded the maximum limit prescribed under Section 62 of the Insurance Act, 2010. Accordingly, the Company was found to be non-compliant with the relevant provisions of the Insurance Act, 2010 in respect of management expense limitations.' [1 p.98]. Management's printed response is: 'Due to high inflation rate and price hike our management expenses have been exceeded during this year 2025. We are trying to keep the management expenses within the limit set by IDRA.' [1 p.138]. Neither page gives the limit or the excess in taka.

Agency commission and reinsurance commission. Agency commission was Tk 93.79m in 2025, 13.6% of gross premium, against Tk 124.84m in 2022 [6 p.83] [4 p.85] [3 p.89] [1 p.110] [16]. Commission on reinsurance ceded was Tk 35.81m, 19.4% of the Tk 184.25m ceded, against Tk 25.60m in 2024 [1 p.110] [1 p.47] (derived). In H1 2026 the agency-commission line is shown as nil, against Tk 47.91m in H1 2025 [7 p.3]; the regulatory background is in the Regulation section.

Underwriting margin. Underwriting profit as a share of net premium was 24.5% in 2025, against 28.9% in 2024 and 32.3% in 2023, the highest in the 2016-2025 series [16]. The 2025 reserve for unexpired risk rose to Tk 231.91m from Tk 192.74m, a Tk 39.17m charge in the revenue account, mostly in marine (Tk 143.11m against Tk 106.18m) [1 p.104] [1 p.112].

Ten years of premium: gross premium Tk 388m in 2016, Tk 914m in 2021, Tk 688m in 2025

Path. Gross premium was Tk 387.71m in 2016, rose each year from 2018 to a peak of Tk 913.93m in 2021, fell to Tk 833.53m in 2022 and Tk 633.24m in 2023, then reached Tk 675.28m in 2024 and Tk 688.22m in 2025 [5 p.49] [1 p.47]. Net premium followed the same path, peaking at Tk 727.98m in 2021 [5 p.49] [1 p.47]. The 2025 gross premium is 24.7% below 2021 and 77.5% above 2016 [16].

Retention. The share of gross premium kept after reinsurance ranged from 62.6% (2017) to 79.7% (2021); it was 73.2% in 2025 [16]. Reinsurance ceded was Tk 184.25m in 2025, against Tk 207.41m in 2022 [5 p.49] [1 p.47]. With higher retention the company keeps more premium and more of each claim; the 2025 class retentions were 94.7% in motor, 87.4% in marine, 65.5% in fire and 23.5% in miscellaneous [16].

Gross claims as printed. The five-year tables print a 'Gross Claims' line, which matches direct claims paid in Form XL for 2025 (Tk 49.03m) [1 p.47] [1 p.134]. It was Tk 102.20m in 2024 and between Tk 32.46m and Tk 66.82m in the other years from 2016 to 2023 [5 p.49] [1 p.47]. The chairman's message describes these as claims 'settled' [1 p.8].

VAT reconciliation. The auditor's fourth emphasis paragraph states the company 'could not provide us the difference amount of BDT. 6.809 million between VAT return (BDT 695.027 million) and "Gross Premium" (BDT 688.218 million) as presented in "Form XL"' [1 p.98]. Management attributes the gap to marine cargo deposit premium recognised only after shipment advices arrive, noting that 'As on 31.12.2025 all shipment advice was not received against all issued marine cover notes' [1 p.138]. The 2024 annual report shows a similar item of Tk 10.04m for 2024 [2 p.142].

Investment and other income Tk 96.32m in 2025: treasury Tk 42.95m, bank deposits Tk 40.73m, rent and disposal gains

Portfolio. At end-2025 the directors list Tk 998.42m of investments: Tk 492.40m in treasury bonds and bills, Tk 255.85m of term deposits in Shariah-based Islamic banks, Tk 224.00m of fixed deposits in conventional banks and Tk 26.17m of shares [1 p.44]. Treasury holdings comprise a Tk 26.00m statutory deposit with Bangladesh Bank and Tk 466.40m of bonds and bills, of which Tk 181.90m is 91-day bills [1 p.125] [1 p.126]. Fixed deposits total Tk 479.85m across 39 banks [1 p.127] [1 p.128].

Income. Investment and other income rose to Tk 96.32m from Tk 75.58m [1 p.106]. Treasury profit was Tk 42.95m, about 8.6% of the average treasury holding, and bank-deposit income Tk 40.73m, about 8.7% of average fixed deposits (both derived) [1 p.128] [16]. Other income of Tk 7.66m included a Tk 5.06m gain on disposal of fixed assets and Tk 2.01m of provident-fund forfeiture [1 p.129]. Rent income rose to Tk 3.21m from Tk 0.24m [1 p.128]. Investment and other income was 9.7% of average investments in 2025, against a 4.9%-7.7% range in 2017-2024 [16].

Where deposits sit. The largest fixed deposits at end-2025 were Tk 86.85m with Al-Arafah Islami Bank, Tk 75.05m with Islami Bank Bangladesh, Tk 36.70m with Shahjalal Islami Bank, Tk 26.20m with Exim Bank, Tk 23.65m with SBAC Bank and Tk 22.30m with Social Investment Bank [1 p.127]. Union Bank holds Tk 2.90m and First Security Islami Bank Tk 1.20m [1 p.127] [1 p.128]. The notes print each balance at face value and Form AA shows all fixed deposits at 'Realizable Value' equal to book value [1 p.133]; the accounts read here contain no impairment line for bank deposits.

Shares. The share portfolio cost Tk 40.58m and had a market value of Tk 26.17m at end-2025, an unrealised loss of Tk 14.41m carried in the investment fluctuation fund within equity [1 p.123] [1 p.126]. The largest holdings by cost were ACI (Tk 16.20m cost, Tk 13.62m market), SIBL (Tk 6.04m, Tk 1.20m), EHL (Tk 4.84m, Tk 3.65m) and Square Pharma (Tk 3.15m, Tk 2.63m) [1 p.126].

Property. The company owns 15,707 sq ft on the 12th floor of DR Tower, Purana Paltan (its head office), bought for Tk 199,944,000 and registered on 22/12/2020 at a cost with registration of Tk 231,070,159, and 5,780 sq ft at Rupayan Taj, Naya Paltan, registered on 23/05/2021 at Tk 95,774,392 [1 p.44]. The latter is carried as investment property at Tk 87.26m [1 p.105]. Fixed assets and investment property together were 35.6% of equity at end-2025 [16].

Unmodified opinion from FAMES & R with four emphasis-of-matter paragraphs and four key audit matters

Opinion. FAMES & R, Chartered Accountants (partner Fouzia Haque, FCA), signed on 24 June 2026 [1 p.103]. The opinion reads: 'In our opinion, the accompanying financial statements give a true and fair view of the financial position of Islami Insurance Bangladesh Limited. as at 31 December 2025, and of its financial performance and its 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.98]. The auditor's report pages carry no text layer; quotations here are read from the page image.

Emphasis of matter 1, 'Property, Plant and Equipment and Investment Property'. 'Depreciation had been charged on the aggregate value of land and office space and Investment Property, which included land. Since land is not a depreciable asset, the depreciation expense and carrying values of the related assets may have been misstated. The effect of such matter on the financial statements could not be determined.' [1 p.98]. The fixed-asset schedule shows 'Land and Office Space' at a cost of Tk 231,070,159 depreciated at 2% (Tk 4,260,066 charged in 2025) and 'Office Space at Rupayan Taj' at Tk 95,774,392, also at 2% (Tk 1,780,813) [1 p.135]. Management's response: 'These have been carrying forwarded since 2020 and 2021 respectively. However, necessary adjustment will be given in next year Financial Statement for the year 2026.' [1 p.138].

Emphasis of matter 2, 'Non-Compliance with Management Expense Limitation'. Quoted in full in the Underwriting section [1 p.98].

Emphasis of matter 3, 'Gratuity Fund Administration'. 'Although a Trust Deed for the Gratuity Fund has been established, separate books of accounts and financial statements for the Gratuity Fund have not been maintained. Furthermore, no independent audit of the Gratuity Fund has been conducted to date. As a result, compliance with the relevant provisions of the Bangladesh Labour Act and related regulatory requirements could not be fully established.' [1 p.98]. Management's response: 'The Company has been maintaining non-funded gratuity fund. We have made provision in the Financial Statement.' [1 p.138]. Sundry creditors include an 'Employee Gratuity Fund' balance of Tk 3,113,507, down from Tk 7,327,752, and the 2025 profit and loss account charges Tk 3,000,000 of gratuity provision [1 p.125] [1 p.106].

Emphasis of matter 4, 'Reconciliation of Gross Premium and VAT Return'. 'We draw attention the company could not provide us the difference amount of BDT. 6.809 million between VAT return (BDT 695.027 million) and "Gross Premium" (BDT 688.218 million) as presented in "Form XL" to the financial statements. Our opinion is not modified in respect of this matter.' [1 p.98].

Key audit matters as printed. The outstanding-claims matter states that the balance 'involves management judgment & risk of over & understatement of the value' and that 'As a result, financial statements may show distorted amount which may also concern going concern issue for the company.' [1 p.100]. The property, plant and equipment matter gives a carrying value of 'Taka 358,426,132' as at December 31, 2025 [1 p.100]; note 10 and the fixed-asset schedule show Tk 358,426,132 as the end-2024 written-down value and Tk 345,984,806 at end-2025 [1 p.125] [1 p.135]. The key-audit-matters introduction refers to 'the matters of restatement of financial position presented for the year ended December 31, 2025 which described in details below' [1 p.99]; no restatement is described in the matters on p.99-101.

Dates. Note 1.04 states the financial statements 'were approved and authorized for issue on 27 April 2026' [1 p.115]; the statements and the auditor's report are dated 24 June 2026, the date of the board meeting that recommended the dividend [1 p.103] [1 p.108].

Form AA ties to the balance sheet. Form AA, the classified summary of assets, lists fifteen asset lines whose book values sum to Tk 1,844,145,625, the total of the statement of financial position; each line equals the matching balance-sheet line, and market value is shown equal to book value on every line [1 p.133] [1 p.105] [16]. Treasury bonds are marked 'Not quoted in Market', shares at 'Market Value', and deposits and receivables at 'Realizable Value' [1 p.133].

Liabilities. Outstanding claims were Tk 227.50m at end-2025 (fire Tk 108.61m, marine Tk 107.21m, motor Tk 11.69m), 23.4% of equity [1 p.124] [16]. Amounts due to Sadharan Bima Corporation (SBC), the state reinsurer, fell to Tk 212.52m from Tk 284.75m, and amounts due from SBC rose to Tk 236.74m from Tk 225.19m [1 p.124] [1 p.126]. The provision for income tax rose to Tk 79.63m and the deferred tax liability to Tk 17.00m [1 p.104]. Notes 31-33 state no capital expenditure commitment, no claims not acknowledged as debt and no credit facility [1 p.132].

Cash flow. Net operating cash flow was Tk 16.33m in 2025 against Tk 66.06m in 2024 [1 p.109]. Collections from premium were Tk 702.89m and payments for management expenses, reinsurance, claims and agency commission Tk 670.94m [1 p.109]. In the reconciliation, the fall in amounts due to other insurers absorbed Tk 72.23m and the rise in amounts due from them Tk 11.55m [1 p.132]. Interest and profit received (Tk 72.05m) are shown in investing cash flow, not operating [1 p.109]. In H1 2026 operating cash flow was Tk 111.77m [7 p.5].

2026 so far: H1 profit after tax Tk 84.72m, agency commission nil, nine-month EPS Tk 3.20 (DSE)

Half year. H1 2026 gross premium was Tk 337.52m, up 6.5%, and net premium Tk 244.46m, up 5.5% [7 p.3] [16]. Management expenses in the revenue section rose 28.3% to Tk 122.42m and net claims 43.8% to Tk 57.24m [7 p.3] [16]. Agency commission is printed as '-' for H1 2026 and for April-June 2026, against Tk 47.91m in H1 2025 [7 p.3]. Underwriting profit was Tk 102.98m, up 43.6%, and profit after tax Tk 84.72m, up 30.2%; EPS was Tk 2.06 against Tk 1.58 [7 p.3] [16]. On the same combined-ratio definition, the interim figure was 66.0% against 71.9% [16].

Third quarter (DSE announcement only). The Q3 accounts are not in the filings corpus. DSE published on 1-Nov-2026: 'EPS was Tk. 1.15 for July-September 2026 as against Tk. 0.37 for July-September 2025; EPS was Tk. 3.20 for January-September 2026 as against Tk. 1.95'; nine-month NOCFPS Tk 4.50 against Tk 1.28, and NAV per share Tk 26.86 at 30-Sep-2026 [12]. The board met on 29-Oct-2026 to consider them [12].

NAV per share. The half-year statement of financial position shows equity of Tk 1,060,177,392 [7 p.2]; divided by 41,165,215 shares that is Tk 25.75, the figure DSE published for 30-Jun-2026 [12] (derived). The OCR text layer of that page reads '25.15'. The reserve for exceptional losses rose by Tk 25.00m in H1 2026 to Tk 533.90m [7 p.2] [7 p.4].

Regulation: IDRA's December 2025 circular on commission, the Section 62 expense limit and the LDC date

Commission circular. The Business Standard reported on 24 December 2025 that IDRA ended the option of paying commissions in the non-life segment and suspended individual agent licences for non-life insurers, through a circular dated 23 December effective from 1 January 2026; the report quotes IDRA that 'insurers will have no legal scope to pay commissions to anyone' [13]. The company's H1 2026 accounts show agency commission as nil [7 p.3]. The company has not given its own explanation of the nil line in the interim accounts or on DSE [7 p.3] [12].

What the line was. Agency commission was Tk 93.79m in 2025, 13.6% of gross premium, and between Tk 64.49m and Tk 124.84m in each year from 2018 to 2025 [6 p.83] [4 p.85] [3 p.89] [1 p.110] [16]. In the 2025 class accounts it was Tk 56.24m in marine and Tk 30.34m in fire [1 p.111] [1 p.112].

Expense limit. The 2025 auditor's report records non-compliance with the management-expense limit under Section 62 of the Insurance Act 2010 [1 p.98], and management states it is 'trying to keep the management expenses within the limit set by IDRA' [1 p.138].

Takaful rules. The directors' report states that IDRA 'has proposed a draft of Islamic Insurance Rules, 2024' and that a draft Takaful Regulation is 'under process' [1 p.43]. The report gives no date for adoption.

LDC graduation. Bangladesh's graduation from least-developed-country status is set for 24 November 2029 [14] [15].

Board, ownership, related parties, dividends and the postponed AGM as printed

Board. The 2025 report lists Alhaj Mohammad Sayeed Khokon as Chairman, Nur Mohammad as Vice Chairman, and as Directors Farhana Sayeed, Alhaj Md. Ismail Nawab, Alhaj Mohammad Abdul Hannan, Mohammad Murtaza Kamal, Nostaren Jamila, Rezwana Hossain, Suhana Ishtiaque, 'Mohammad Sadeq repesentative of AHSL', 'Md. Habibur Rahman repesentative of SKPL', Shahana Hanif, Rifa Nanzeba Sayeed, Mahmuda Nasim, Ayesha Nivrash Sayeed, Fatima Noshin Maysha Sayeed Aurora, Barrister Tanha Zarrin Ahmed and Akila Nazneen [1 p.17]. The chairman's message is signed 'Alhaj Mohammad Sayeed Khokan' [1 p.8]. The audit committee report lists five members: '1. Akila Nazneen 2. Shahana Hanif 3. Nur Mohammad 4. Barrister Tanha Zarrin Ahmed 5. Alhaj Mohammad Abdul Hannan', states that 'the Chairman of the committee is an Independent Director', and is signed by 'Akila Nazneen, Chairman, Audit Committee'; six meetings were held in 2025 [1 p.57].

Management. The board page lists 'Chief Execuitve Officer (Acting)' Md. Moinul Ahsan Chowdhury [1 p.17], and the statements are signed by a 'Chief Executive Officer (Acting)' and 'CFO (Acting)' [1 p.105]. Note 3.01 lists 'Chief Executive Officer & Managing Director Mr. Md. Adbul Khaleque' and 'Additional Managing Director & Chief Financial Officer Mr. Md. Moinul Ahsan Chowdhury', each holding no shares [1 p.123]. Note 25.01 lists six key management personnel: Md. Moinul Ahsan Chowdhury, Md. Nazim Uddin, Chowdhury Ahasanul Haque ('Assistant Managing Director, Head of HR & Company Secretary', salary Tk. 20,52,081/-, bonus Tk. 2,74,365/-), Md. Jahirul Haque ('Assistant Managing Director & Incharge Claim', salary Tk. 12,67,488/-, bonus Tk. 1,63,080/-), Md.Zillur Rahman ('Senior Executive Vice President & In-Charge Re-Insurance', salary Tk.16,43,832/-, bonus Tk. 2,24,625/-) and Lutfull Haque Bhuiyan ('Executive Vice President & Head of Share', salary Tk. 11,50,179/-, bonus Tk. 1,52,385/-); it shows Md. Moinul Ahsan Chowdhury as 'Addl. Managing Director & Chief Financial Officer' with salary Tk. 25,89,669/- and bonus Tk. 3,49,325/-, and Md. Nazim Uddin as 'Addl. Managing Director & In-Charge Underwriting' with salary Tk. 18,00,000/- and bonus Tk. 2,25,000/- [1 p.130].

Ownership. Directors and sponsors held 45.61% of the 41,165,215 shares at end-2025, the general public 45.93% and institutions 8.46%, across 3,928 shareholders [1 p.122]. The largest listed holdings are 'Mohammad Sayeed, Director' with 3,233,793 shares (7.86% of paid-up capital) and 'Farhana Sayeed, Director' with 2,045,000 (4.97%); most other directors hold between 823,298 and 1,000,100 shares each [1 p.122]. Two companies appear on the sponsor-shareholder list with named representatives: 'Aara Hospitality Services Ltd.(Repr.Mr. Mohammad Sadeq)' and 'Sayeed Khokon Properties Ltd.(Repr.Habibur Rahman)', each with 823,500 shares [1 p.122].

Related parties. Note 30 states that related-party transactions are 'conducted on an arm's length basis at commercial rates' and presents a table whose premium-outstanding, amount-realised and claim columns read 'Nil'; no related party is named and no amount is shown [1 p.132]. Directors receive only meeting fees. Note 25, headed 2025, shows Tk 1,712,000 plus Tk 171,200 VAT, Tk 1,883,200 in total, listed by role [1 p.129], and note 35(ii) says 'Tk. 18,83,200.00' was paid in 2025 [1 p.132]; the profit and loss account, however, prints directors' fees of Tk 1,386,900 for 2025 and Tk 1,883,200 for 2024 [1 p.106]. The filing does not reconcile the two. By role, note 25 shows Chairman Tk 128,000, Vice Chairman Tk 32,000 and directors between Tk 32,000 and Tk 152,000 [1 p.129]. The directors' report cites an IDRA letter of 31 May 2018 setting the fee at BDT 8,000 per meeting [1 p.46].

Dividends. The record shows stock dividends of 10% for 2016 and 2020 and 5% for 2017 and 2019, and cash dividends of 12.5% for 2021 and 2022, 15% for 2023, 20% for 2024 and 16% for 2025 [5 p.49] [1 p.47]. Paid-up capital rose from Tk 308.58m in 2016 to Tk 411.65m in 2021 and has been unchanged since [5 p.49] [1 p.47]. Cash paid out for 2024 was Tk 82,330,430 [1 p.107]. The 2025 recommendation equals 52.6% of EPS [16]. Unclaimed dividend rose to Tk 8.97m, of which Tk 7.37m relates to 2024 [1 p.125].

AGM. The notice called the 26th AGM for 27 August 2026 on a digital platform, with a record date of 20 July 2026 and a special resolution to change the name to 'Islami Insurance Bangladesh PLC' [1 p.5]. The agenda includes both 'the appointment of statutory auditors for the year 2026' and 'for the year 2025' [1 p.5]. On 27-Aug-2026 the company told DSE that 'pursuant to the instruction of the Honorable Court, the Annual General Meeting (AGM) scheduled to be held on August 27, 2026, has been postponed. The rescheduled date and time of the AGM will be communicated later.' [12]. No later DSE notice gives a date (sweep to 1-Nov-2026) [12].

Timing of results. The board considered the FY2024 audited accounts on 30-Apr-2025 and the FY2025 accounts on 24-Jun-2026, with the Q1 2026 accounts at the same meeting [12]. The Q2 2026 board meeting was set for 30-Jul-2026, postponed 'due to unavoidable circumstances', and held on 06-Aug-2026 [12]. DSE posted an emphasis-of-matter notice for the 2025 accounts on 23-Jul-2026 and for the 2024 accounts on 25-May-2025 [12]. The 24-month sweep of DSE news shows no board approval of capital expenditure or expansion [12], and note 31 states no capital expenditure commitment at end-2025 [1 p.132].

Rating. ARGUS Credit Rating Services announced a claim-paying-ability rating of 'AAA' long term and 'ST-1' short term with a Stable outlook on 08-Jul-2026, on financials to December 31, 2025 and Q1 2026, and the same rating on 24-May-2025 [12].

Ratios 2016-2025: ROE 13.2% in 2025, between 10.9% (2018) and 19.5% (2021)

Returns. Return on average equity was 13.2% in 2025, 15.7% in 2024 and 19.5% in 2021, the high of the 2017-2025 series; the low was 10.9% in 2018 [16]. Return on average assets was 6.8% in 2025 [16]. Equity was 52.7% of total assets at end-2025, the highest in the ten years, against 42.2% in 2021 [16]. Net premium was 0.52 times equity in 2025 against 1.01 times in 2021 [16].

Tax. The effective tax rate (one minus profit after tax over profit before tax) was 24.9% in 2025, against 16.4% in 2024 and 31.7% in 2016 [16]. Note 9.01 deducts the Tk 61.00m reserve for exceptional losses from taxable business income and taxes interest on government securities at 37.5% [1 p.124]. Current tax was Tk 38.93m in 2025 against Tk 24.82m in 2024 [1 p.106].

Earnings and cash. Profit after tax rose in every year from 2016 to 2021, fell in 2022 and 2023, rose 17.8% in 2024 and fell 10.9% in 2025 [16]. Operating cash flow was 0.13 times profit after tax in 2025 and 0.47 times in 2024 [16]. NOCFPS as printed was Tk 0.40 in 2025 and Tk 1.60 in 2024; DSE's 2024 announcement gives Tk (0.81) for 2023 [1 p.109] [12].

Multiples as facts. On the year-end prices printed in the annual reports, P/E ranged from 12.0 times (2024 and 2025) to 23.3 times (2020) and P/B from 1.41 times (2016) to 3.74 times (2021) [16]. At the 29-Oct-2026 close of Tk 70.0, P/E on 2025 EPS was 23.0 times and P/B on end-2025 NAV 2.96 times; the 2025 cash dividend of Tk 1.60 is 2.3% of that price [11] [16]. The close a year earlier, on 29-Oct-2025, was Tk 40.5 [11]. The highest weekday close in the 52 weeks to 29-Oct-2026 was Tk 72.0 (19-Oct-2026); the feed also carries a bar dated Saturday 17-Oct-2026 with a Tk 72.6 close, which we could not confirm as a DSE trading day and exclude from the range [11].

Peers on one definition: combined ratio 67.7% at Islami, 72.7% Nitol, 68.1% Pioneer, 83.5% Takaful Islami

Peer set and basis. We compare Islami Insurance with Takaful Islami Insurance (also a Shariah-based general insurer), Nitol Insurance and Pioneer Insurance for calendar 2025, from each company's own annual report on the pages cited, with one combined-ratio definition. Reinsurance commission includes profit commission where printed (Nitol). We read each audit opinion first. Nitol's auditor (Mahfel Huq & Co.) wrote 'In our opinion, the accompanying financial statements present fairly, in all material respects' and added an 'Emphasize of matter' section with three items [8 p.181]. Pioneer's auditor (ARTISAN) wrote 'In our opinion, the accompanying financial statements present fairly, in all material respects' [9 p.172]. Takaful Islami's auditor, ARTISAN, Chartered Accountants (AMK Lohani, FCA, signing the statements on 29 April 2026) [10 p.89], gave a qualified ('except for') opinion: 'In our opinion, except for the effect of the matters described in the basis for Opinion section of our report, the accompanying financial statements presents fairly in all material respects' [10 p.75]; the 'Basis for Opinion' paragraph on that page contains the standard wording only [10 p.75].

Underwriting. Among these four, Islami's 67.7% combined ratio is the lowest; Pioneer's is 68.1%, 0.4pp higher, Nitol's 72.7%, 4.9pp higher, and Takaful Islami's 83.5%, 15.7pp higher [16]. The two Shariah-based insurers have the lowest claims ratios, 3.9% at Islami and 3.5% at Takaful Islami, against 21.6% at Nitol and 19.4% at Pioneer [16]. Management expenses plus agency commission were 52.0% of gross premium at Islami, 64.9% at Takaful Islami, 40.6% at Nitol and 31.2% at Pioneer [16]. Islami kept 73.2% of gross premium, against 71.0% at Takaful Islami, 56.8% at Nitol and 53.1% at Pioneer [16].

Labels as printed. The line we use for management expenses is labelled 'Expenses of management (with stamp used)' at Islami [1 p.110], 'Expenses of Management' at Nitol and Pioneer [8 p.189] [9 p.181], and 'Expenses of management' at Takaful Islami [10 p.89]. Commission is 'Agency commission' at Islami and Pioneer and 'Agent Commission' at Nitol and Takaful Islami. Pioneer prints its own 'Combined Ratio' of 68.07% for 2025 [9 p.11]; our figure on the common definition is 68.1% [16]. Takaful Islami's highlights print 'Net Claim' of 132.01 lac for 2025 [10 p.28]; we use the revenue-account figure of Tk 20,004,870 [10 p.89].

Scale and returns. By gross premium Islami (Tk 688.22m) is the smallest of the four; Nitol wrote Tk 705.15m, Takaful Islami Tk 809.93m and Pioneer Tk 3,876.23m [16]. Return on year-end equity was 12.9% at Islami, 9.7% at Pioneer, 6.2% at Nitol and 5.2% at Takaful Islami; equity for Nitol, Pioneer and Takaful Islami is NAV per share times shares (derived) [16]. Takaful Islami prints EPS of Tk 1.21 for 2025 and profit after tax of 410.71 lac on paid-up capital of 4,258.69 lac [10 p.28].

Multiples as facts. At Tk 70.0 Islami traded at 23.0 times 2025 EPS and 2.96 times end-2025 NAV per share [16]. Nitol was at 30.3 times and 1.87 times, Pioneer at 14.3 times and 1.39 times, and Takaful Islami at 37.7 times and 2.47 times [16].

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

Each row has a date after the note date (31-Oct-2026) and a source. We do not forecast numbers. Already-announced results (Q3 2026, posted 1-Nov-2026) are in the text above. The postponed 26th AGM has no notified date and is covered under Governance.

Accounts timing. The FY2025 accounts were considered on 24-Jun-2026, 55 days later in the calendar than the FY2024 accounts (30-Apr-2025) [12]. The inferred FY2026 window spans both precedents and is labelled as inferred; no board date has been notified [12]. The FY2026 accounts are the first full year after the IDRA commission circular reported by The Business Standard [13] and the year in which management says the land-depreciation adjustment will be made [1 p.138].

Passed events. The Q2 2026 board meeting (06-Aug-2026) and the Q3 2026 board meeting (29-Oct-2026) have passed and their results are announced [12]. The 26th AGM date of 27-Aug-2026 passed without the meeting being held; the outcome of the court matter is unknown from the sources read [12].

Risk map: expense limit, land depreciation, claims reserves, cash conversion, bank deposits and the AGM

Expenses. Expenses of management are the largest cost line: Tk 263.84m in the revenue accounts in 2025, against net claims of Tk 19.47m [1 p.110]. In FY2025, each 1pp of management expenses as a share of gross premium was Tk 6.88m of underwriting result (1% of Tk 688.22m, derived) [16]. The auditor recorded non-compliance with the statutory limit [1 p.98].

Claims reserves. Outstanding claims of Tk 227.50m were 23.4% of equity at end-2025, and fire outstanding claims fell by Tk 52.58m during 2025, which produced the negative fire claims line [1 p.124] [1 p.111] [16]. The auditor's key audit matter on this balance refers to a 'risk of over & understatement of the value' [1 p.100].

Bank deposits. Fixed deposits of Tk 479.85m are 49.3% of equity; Tk 52.60m of them are with Exim Bank, Social Investment Bank, Union Bank and First Security Islami Bank [1 p.127] [1 p.128] [16]. The accounts read here contain no provision against any bank deposit [1 p.133].

• FY2026 annual report (board meeting inferred Apr-Jun 2027; no date notified): auditor's report, Annexure A, note 24, revenue accounts.
• DSE notice of the rescheduled 26th AGM (no date notified as of 1-Nov-2026).
• Q1 2027 accounts (inferred Apr-Jun 2027): agency commission and management expense lines.

Ten-year history

Figures for 2016-2020 are from the 2020 annual report's performance table and for 2021-2025 from the 2025 report's five-year table [5 p.49] [1 p.47]. Claims, commission and expenses come from the consolidated revenue accounts, each giving two years [6 p.83] [4 p.85] [3 p.89] [1 p.110]. The 2018-2019 revenue account is an OCR text layer whose totals were checked to sum; the 2020-2025 accounts were read from page images. EPS and NAV per share are as printed in each table. The chairman's message gives profit before tax of 'BDT 139.08 million' for 2025 [1 p.8]; the profit and loss account shows Tk 166,592,186, and Tk 139.08m is the 2024 underwriting profit [1 p.106].

FAQ

How much did Islami Insurance Bangladesh earn in 2025?

Profit after tax was Tk 125.13m, down 10.9% from Tk 140.46m, and EPS was Tk 3.04 against Tk 3.41. Underwriting profit was Tk 123.51m and investment and other income Tk 96.32m. Profit before tax was Tk 166.59m against Tk 168.01m.

What did the auditor say about the 2025 accounts?

FAMES & R gave an unmodified opinion with four emphasis-of-matter paragraphs: depreciation charged on land and office space and investment property including land, with an effect that could not be determined; management expenses above the maximum limit under Section 62 of the Insurance Act 2010; no separate books or audit of the gratuity fund; and an unexplained BDT 6.809 million gap between the VAT return and gross premium.

What is Islami Insurance's combined ratio?

67.7% in 2025 and 68.1% in 2024, measured as net claims incurred plus management expenses plus agency commission less reinsurance commission, over net premium. Across 2018-2025 the highest was 84.5% in 2023 and the lowest 64.4% in 2021.

What dividend did the board recommend for 2025?

A 16% cash dividend, Tk 1.60 a share, recommended on 24-Jun-2026 with a record date of 20-Jul-2026. It equals 52.6% of 2025 EPS. The AGM set for 27-Aug-2026 to approve it was postponed on court instruction and no new date had been notified by 1-Nov-2026.

How has Islami Insurance done in 2026 so far?

H1 2026 gross premium was Tk 337.52m, up 6.5%, and profit after tax Tk 84.72m, up 30.2%, with agency commission shown as nil. DSE announcements give nine-month EPS of Tk 3.20 against Tk 1.95 and NAV per share of Tk 26.86 at 30-Sep-2026.

Where does Islami Insurance keep its investments?

At end-2025 it held Tk 492.40m in treasury bonds and bills, Tk 479.85m of fixed deposits across 39 banks (Tk 255.85m in Shariah-based Islamic banks) and shares with a market value of Tk 26.17m at a cost of Tk 40.58m. It also owns office space at DR Tower and Rupayan Taj.

Sources

1. Islami Insurance Bangladesh Limited Annual Report 2025 (corpus ISLAMIINS_ANNUAL_2025, PDF page numbers; statements are image-only pages read from the page image) · link · accessed 2026-11-01
2. Islami Insurance Bangladesh Limited Annual Report 2024 (disclosure on the auditor's emphasis of matters, p.142) · link · accessed 2026-11-01
3. Islami Insurance Bangladesh Limited Annual Report 2023 (consolidated revenue account 2022-2023, p.89) · link · accessed 2026-11-01
4. Islami Insurance Bangladesh Limited Annual Report 2021 (consolidated revenue account 2020-2021, p.85) · link · accessed 2026-11-01
5. Islami Insurance Bangladesh Limited Annual Report 2020 (performance at a glance 2016-2020, p.49) · link · accessed 2026-11-01
6. Islami Insurance Bangladesh Limited Annual Report 2019 (consolidated revenue account 2018-2019, p.83) · link · accessed 2026-11-01
7. Islami Insurance Bangladesh Limited un-audited half-year accounts to 30-Jun-2026 (corpus ISLAMIINS_QUARTERLY_Q2_2026, document page numbers) · link · accessed 2026-11-01
8. Nitol Insurance PLC Annual Report 2025 (peer; key highlights p.16, auditor's report p.181, consolidated revenue account p.189) · link · accessed 2026-11-01
9. Pioneer Insurance PLC Annual Report 2025 (peer; five-year summary p.11, auditor's report p.172, consolidated revenue account p.181) · link · accessed 2026-11-01
10. Takaful Islami Insurance PLC Annual Report 2025 (peer; financial highlights p.28, auditor's report p.75, consolidated business revenue account p.89) · link · accessed 2026-11-01
11. AnalystBro market data: DSE daily bars for ISLAMIINS, NITOLINS, PIONEERINS and TAKAFULINS to 29-Oct-2026 · link · accessed 2026-11-01
12. DSE news archive for ISLAMIINS (old.dsebd.org), 31-Oct-2024 to 1-Nov-2026 · link · accessed 2026-11-01
13. The Business Standard, 'IDRA scraps commission payments in non-life insurance sector', 24 Dec 2025 · link · accessed 2026-11-01
14. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation', 30 Oct 2026 · link · accessed 2026-11-01
15. The Business Standard, 'Bangladesh gets 3 more years for LDC graduation', 30 Oct 2026 · link · accessed 2026-11-01
16. AnalystBro history and ratio model for ISLAMIINS (model.xlsx, the workbook below) · link · accessed 2026-11-01