Meghna Life Insurance financial analysis: life fund down five years, claims above premium, 15% dividend (Oct 2026)

Investment considerations: premium down 15.9% to BDT 2.83bn, fund BDT 15.74bn, unmodified audit with one emphasis of matter

Updated 3-Nov-2026: added the business model and industry forces, IDRA 2023-2024 market share, claim settlement on the claims-lodged basis and the 2024 expense limit, a 2021-2025 life fund walk, claims by type for 2021-2025, the direct-method cash flow and its reconciliation, the actuarial surplus next to the DSE interim results, the auditor's eight key audit matters in full, Bangladesh Bank rate series, five years of DSE events, and answers on premium short deposits, accrued interest, the fourth-quarter rise in the fund and the bonus cut.

Meghna Life Insurance PLC (Meghna Life) came into operation on 5 May 1996 and has been listed on the Dhaka and Chittagong stock exchanges since 4 September 2005; it has been engaged in life insurance since inception [1 p.202]. It holds 99.1375% of Meghna Life Securities & Investment Ltd., a stock broker and dealer that began business on 30 September 2014 [1 p.202]. DSE approved the change of name from Meghna Life Insurance Co. Ltd. to Meghna Life Insurance PLC with effect from 24 April 2025 [17]. The annual report gives 623 staff and 325 branches in its operational highlights [1 p.11]; the credit rating summary in the same report gives 392 branches [1 p.89].

In 2025 Meghna Life wrote BDT 2,826.6m of gross premium and closed the year with a life insurance fund of BDT 15,735.1m and total assets of BDT 17,656.7m [1 p.13] [1 p.196] [1 p.197]. Paid-up capital is BDT 424.1m in 42,405,218 shares of BDT 10 [1 p.196]. A life insurer's accounts run through the life revenue account: premium and investment income go in; claims, commission, management expenses, tax and the shareholders' dividend go out; the balance is carried forward as the life fund [1 p.198] [1 p.199]. The life fund is the policyholders' reserve; it is not shareholders' equity. The company statement of changes in equity shows share capital of BDT 424.1m and no reserves or retained earnings at Dec-2025 [1 p.200].

Gross premium was BDT 4,350.8m in 2019, the high of 2017-2025, and BDT 2,826.6m in 2025 [5 p.20] [1 p.13]. Claims paid rose from BDT 2,599.1m in 2018 to BDT 4,464.1m in 2023 and were BDT 2,867.8m in 2025 [5 p.20] [1 p.13]. Claims paid were above gross premium in 4 of the nine years (2022, 2023, 2024, 2025) [25]. The life fund rose each year from 2017 to a peak of BDT 18,896.4m in 2020 and fell in each of the 5 years 2021-2025, by BDT 3,161.3m in total [5 p.21] [1 p.14] [25]. Net cash flow from operating activities was negative in each of 2021-2025 [1 p.14].

The auditor, M.Z. Islam & Co., gave an unmodified opinion on the 2025 consolidated and separate statements, with one emphasis of matter paragraph on deposits and other balances with seven named banks and finance companies, and eight key audit matters [1 p.188] [1 p.189] [1 p.193]. The FY2024 opinion, by Ashraf Uddin & Co., was also unmodified [2 p.124]. The board recommended a 15% cash dividend for both 2024 and 2025 [17].

Business: four premium lines, group insurance BDT 65.0m, a loss-making broker subsidiary

The life revenue account splits first year and renewal premium into four lines, labelled EB, LB, IB and SMART [1 p.199]. In 2025 first year premium was BDT 244.1m (EB), BDT 98.7m (LB), BDT 89.6m (IB) and BDT 24.0m (SMART); renewal premium was BDT 1,410.8m (EB), BDT 401.1m (LB), BDT 466.2m (IB) and BDT 27.2m (SMART) [1 p.199]. Group insurance premium was BDT 65.0m in 2025, up from BDT 36.1m [1 p.199]. By the company's own split, first year premium was 16.15%, renewal premium 81.55% and group insurance premium 2.30% of 2025 premium [1 p.223].

By maximum premium-paying period, policies of twelve years and above made up BDT 323.6m of 2025 first year premium, single premium BDT 75.9m and ten-year policies BDT 50.4m [1 p.199]. Reinsurance premium was BDT 13.4m in 2025, a retention ratio of 99.53% as printed [1 p.13]. First year commission was 31.12% of first year premium in 2025, against 42.36% in 2021 and 50.24% in 2017 [1 p.13] [5 p.20].

The subsidiary, Meghna Life Securities & Investment Ltd., had a net loss of Tk 17,553,512 in 2025 and Tk 19,456,601 in 2024 and a net asset value per share of Tk 9.53 [1 p.258] [1 p.259]. The parent's investment in it is BDT 396.6m and its loan to it BDT 75.0m [1 p.197] [1 p.212]. The subsidiary notes record a contingent liability of Tk 14,712,862 and four criminal cases filed against its ex-CEO to recover an unsettled mortgage loan [1 p.259].

The board's report lists among its 2025 initiatives the conversion to a public limited company, expansion of group and health insurance, exploration of bancassurance opportunities and cost optimisation [1 p.100]. Note 33 states there was no capital expenditure commitment authorised by the board at 31 December 2025 [1 p.224], and the 24-month DSE sweep shows no board approval of a capital project [17].

Business model. What it sells: individual life policies in four premium lines (EB, LB, IB and SMART) plus group and, from 2025, health cover; first year premium was 16.15%, renewal premium 81.55% and group premium 2.30% of 2025 premium [1 p.223]. The 2021 directors' report names the lines Ekok Bima, Loko Bima-Micro and Islami Bima (Takaful) [5 p.66]. To whom: individual policyholders through an agency field force; no customer concentration is disclosed. How it earns: premium and investment income enter the life revenue account, claims, commission, management expenses and tax leave it, and the balance stays in the life fund; the actuary's annual valuation sets the surplus from which policyholder bonus and the shareholders' dividend are paid [1 p.198] [3 p.81]. Inputs and capacity: 623 staff, 325 branches (392 in the rating summary) and 10 composite service centres [1 p.11] [1 p.89] [1 p.145]; agent numbers are not disclosed. Funding: the policyholders' life fund of BDT 15,735.1m and paid-up capital of BDT 424.1m; no borrowing line appears in the balance sheet [1 p.196]. Control: sponsors and directors held 30.11% at Dec-2025, led by the Nizam Uddin Ahmed family and its foundation [1 p.111].

Industry forces, from printed facts. Rivalry: IDRA lists 36 life insurers for 2024; Meghna Life's gross premium of BDT 3,361.1m was a 2.73% market share, against 3.11% in 2023, and ranks 11th of 36 [20] [25]. Suppliers: reinsurance is placed with General Insurance Corporation of India [3 p.121], and reinsurance premium was BDT 13.4m in 2025 [1 p.13]; agents are paid commission of BDT 182.4m [1 p.223]. Buyers: individual policyholders; no concentration is disclosed. Entry barriers: an IDRA licence under the Insurance Act 2010, the management-expense limit under S.R.O. 01/2020 and the investment rules of S.R.O. 360/2019 named by the auditor [1 p.190] [1 p.192]. Substitutes: none disclosed.

Premium: BDT 2,826.6m in 2025, down 15.9%; 22,299 new policies

Gross premium fell 12.2% in 2024 and 15.9% in 2025, to BDT 2,826.6m [1 p.13] [25]. It was above BDT 4,200m in each of 2017-2020 [5 p.20]. First year premium was BDT 456.4m in 2025, down 20.6% on our calculation from the printed first year premium lines, after 23.1% in 2024 [1 p.13] [25]; it was BDT 1,031.1m in 2019 [5 p.20]. Renewal premium was BDT 2,305.2m in 2025, down 16.2% [1 p.13] [25].

The number of new policies issued was 89,193 in 2017, 79,200 in 2021, 33,787 in 2024 and 22,299 in 2025 [5 p.21] [1 p.15]. Of the 79,200 policies issued in 2021, 30,783 were renewed in 2022, 27,673 in 2023, 19,558 in 2024 and 20,530 in 2025; of the 33,787 issued in 2024, 13,888 were renewed in 2025 [1 p.15]. Renewal premium from policies issued in 2024 was BDT 115.2m in 2025 [1 p.15].

The conservation ratio, as printed, was 73.20% in 2025 and 76.27% in 2024; over 2017-2025 it ranged from 72.06% (2021) to 78.44% (2022) [1 p.14] [5 p.20]. Our proxy, renewal premium over the prior year's first year plus renewal premium, gives 69.3% for 2025 and 72.4% for 2024 [25]. The second policy year lapse ratio by number of policies was 61.41% in 2025 against 46.32% in 2024; by premium amount it was 41.50% against 68.04% [1 p.14]. The sixth policy year lapse ratio by number was 69.19% in 2025 [1 p.14].

In H1 2026 gross premium was BDT 775.2m, up 3.5% on H1 2025; first year premium was BDT 196.1m against BDT 131.1m, renewal premium BDT 551.4m against BDT 596.7m and group premium BDT 27.6m against BDT 21.4m [7 p.6] [25].

Claims: BDT 2,867.8m in 2025, 101.5% of gross premium

Claims under policies were BDT 2,867.8m in 2025 against BDT 3,633.9m in 2024 [1 p.198]. In 2025 the lines were: by death BDT 82.7m, by survival BDT 1,010.9m, by maturity BDT 1,180.4m, by surrenders BDT 51.5m, by health benefit BDT 29.6m and bonus to policy holders BDT 512.7m [1 p.198]. Maturity, survival and bonus together were 94.3% of claims [25]. Maturity claims were BDT 1,660.2m in 2024 and bonus BDT 800.1m [1 p.198].

On the key-indicator basis, claims paid were 101.5% of gross premium in 2025, 108.1% in 2024 and 116.6% in 2023 [1 p.13] [25]. In 2017-2020 the ratio was between 60.04% and 70.51% [5 p.20]. Total claims were 101.9% of net premium in 2025 [25]. The cash flow statement shows payments for claims of BDT 2,850.9m in 2025 and BDT 3,639.5m in 2024 [1 p.201]. Outstanding claims were BDT 37.0m at Dec-2025 and BDT 20.1m at Dec-2024 [1 p.196]; the credit rating summary in the annual report gives outstanding maturity claims of BDT 0.7m [1 p.89].

The auditor's sixth key audit matter reads: "The company reported Claims under Policies TK. 2,867,833,264/- including Death Claim, Maturity Claim, Survival Benefit, Policy Bonus and Claim by Surrender Value of Policy. Life Insurance companies spend significant amount of money to settle claims aroused under policy. It is important to verify that the settled amounts are relevant to the reporting period and complied with relevant laws and Rules. There are Chances of misstatement due to wrong calculation, cut-of date, and misrepresentation of funds used to settle those claims. The total amount is material to the Financial Statements." [1 p.192]

In H1 2026 claims and surrenders were BDT 1,335.8m, against BDT 1,452.8m in H1 2025; that is 172.3% of H1 2026 gross premium [7 p.6] [25]. The filings read do not publish a maturity schedule for future years.

Over 2021-2025 maturity, survival and bonus made up between 94.3% and 96.6% of claims each year [25]. Maturity claims rose from BDT 1,441.3m in 2021 to BDT 2,119.2m in 2023 and fell to BDT 1,180.4m in 2025; death claims were BDT 126.3m in 2021 and BDT 80.6m-89.6m in 2022-2025 [5 p.81] [3 p.107] [1 p.198]. The filings read give claims by type, not by year of issue or term, and print no schedule of maturities falling due (searched: revenue accounts and notes 26-27 of AR2021-AR2025, directors' reports, 'maturity' and 'actuar' in AR2025). Outstanding claims were BDT 31.2m at Dec-2022 and BDT 25.7m at Dec-2023 [3 p.121].

On IDRA's basis, which counts claims lodged with the insurer and claims settled, Meghna Life had BDT 3,659.6m lodged and BDT 3,639.5m settled in 2024, a settlement rate of 99.45%, and 99.43% in 2023; the industry rates were 65.94% and 71.30% [20] [25]. The IDRA settled figures equal the cash flow statement's payments for claims, BDT 3,639.5m (2024) and BDT 4,469.5m (2023) [1 p.201] [3 p.110].

Bonus to policy holders, paid with maturity claims, fell from BDT 800.1m in 2024 to BDT 512.7m in 2025 [1 p.198]. The directors' reports give the valuation surplus and the bonus allocated from it: Tk 58.18 crore and Tk 34.37 crore for 2021, Tk 56.83 crore and Tk 41.42 crore for 2022, Tk 38.24 crore and Tk 26.56 crore for 2023, and Tk 64.31 crore and Tk 57.88 crore for 2024 [5 p.66] [4 p.74] [3 p.86] [2 p.60]. The 2022 report's highlights page gives a different figure: "Surplus for the year (as per actuarial valuation) - Tk. 5.83 Crore" [4 p.10]. The bonus rates per Tk 1,000 of sum assured, the valuation interest rate and the mortality table are not disclosed (searched: AR2021-AR2025 directors' reports and notes, 'reversionary', 'per thousand', 'mortality', 'valuation basis'). The company does not explain the 2025 fall in bonus.

Expenses: BDT 697.6m in 2025, 0.10% below the IDRA allowable limit

Management expenses on the IDRA key-indicator basis were BDT 697.56m in 2025; the allowable limit was BDT 698.24m, 0.10% below the limit [1 p.13] [25]. In 2024 they were BDT 783.84m against BDT 748.77m allowable, BDT 35.07m above the limit [1 p.13]. In 2017-2023 they were below the limit each year, by between 0.01% (2023) and 8.86% (2018) [5 p.20] [1 p.13]. The auditor's report states that the company incurred "Tk. (236,181,672 + 461,375,238) Tk. 697,556,910/- as management expense" [1 p.192].

The revenue account splits the BDT 697.6m into commission to insurance agents of BDT 182.4m, allowances and commission of BDT 53.8m and other expenses of management of BDT 461.4m [1 p.198]. The largest of the other lines were salaries of BDT 282.9m, rents for other offices of BDT 31.2m, bank charges of BDT 19.2m and gratuity of BDT 16.2m [1 p.198]. Salaries split into BDT 194.7m administration and BDT 88.2m development [1 p.223]. Employees numbered 623 at Dec-2025 and 869 at Dec-2024 [1 p.224].

Management expenses were 24.7% of gross premium in 2025, 23.3% in 2024 and 31.2% in 2017 [25]. Total commission was BDT 236.2m in 2025, 8.36% of gross premium as printed [1 p.13]. Directors' fees were Tk 647,200 and the chief executive's salary and allowances Tk 6,300,000 in 2025 [1 p.198] [1 p.224].

IDRA's own 2024 table shows Meghna Life at Tk 78.38 crore against an allowed Tk 74.88 crore, Tk 3.51 crore over, the same figures as the company's key-indicator page; 23 of the 36 life insurers were over their limit in 2024, and the industry spent 1.2% more than allowed [20] [25]. No IDRA penalty or direction on the 2024 excess is disclosed (searched: AR2025 directors' report, notes and IDRA compliance table; DSE posts 2024-2026). The auditor states that the limit is reviewed under S.R.O. 01/2020 [1 p.192]. The 2023 key-indicator figure of BDT 936.67m equals the revenue account's BDT 922.06m of management expenses plus BDT 14.60m of VAT expenses [1 p.13] [3 p.107] [25].

Investments: FDRs BDT 3.64bn and treasury bonds BDT 3.93bn; yield on life fund 4.74%

Interest, rent and dividend income was BDT 735.3m in 2025 [1 p.199]. Fixed deposits gave BDT 357.9m (48.7%) and government treasury bonds BDT 344.8m (46.9%); the rest came from dividends of BDT 8.1m, policy loans of BDT 8.3m, the subsidiary of BDT 7.1m, rent of BDT 4.8m, short term deposits of BDT 3.8m and mortgage loans of BDT 0.6m [1 p.223] [25]. The printed yield on life fund was 4.74% in 2025 and 4.53% in 2024; it was 6.33% in 2017 [1 p.14] [5 p.20]. Our derivation, investment income over the average life fund, gives 4.63% for 2025 [25].

At Dec-2025 fixed deposits with banks and NBFIs were BDT 3,637.8m with 40 institutions with a Dec-2025 balance in note 20 (41 listed), down from BDT 4,028.5m [1 p.220] [1 p.221]. The largest were Al-Arafah Islami Bank (BDT 399.8m), EXIM Bank (BDT 373.3m) and Social Islami Bank (BDT 305.3m) [1 p.220] [1 p.221]. Treasury bonds were BDT 3,931.4m plus a BDT 15.0m statutory deposit [1 p.212]. Shares and unit funds were carried at a book value of BDT 1,409.9m and had a market value of BDT 1,218.6m, a difference of BDT 191.3m [1 p.215] [25]. The revenue account charged BDT 38.8m of loss on fluctuation of share value in 2025 and BDT 95.2m in 2024 [1 p.198].

The share list includes 4,253,056 shares of Karnaphuli Insurance at a book value of Tk 93,039,488.76, two unlisted holdings carried at Tk 420,000,000 (ACAML) and Tk 130,000,000 (Uni.Fin.Solution Ltd.), and unit funds of Popular Life, Sandhani Life, MTB and Rupali Life [1 p.214] [1 p.215]. Karnaphuli Insurance PLC is a director of Meghna Life, represented on the board by Md. Zahid Anwar Khan [1 p.99]. House property was BDT 1,131.5m, including land and a building at 11 Toyenbee Circular Road, Motijheel, at BDT 898.4m; the note states that interior decoration is not complete and the property has not been rented [1 p.215].

Interest, dividend and rent accrued but not due was BDT 721.2m at Dec-2025, against BDT 505.3m; of it, FDR interest was BDT 550.1m, treasury bonds BDT 94.2m, policy loans BDT 33.6m and Alliance Capital BDT 40.3m, unchanged from 2024 [1 p.217]. On FDRs, BDT 357.9m was accrued in 2025, BDT 104.7m added as an 'adjustment during the year' and BDT 250.5m recovered [1 p.217]. The note does not split the accrual by bank. The share on the seven institutions named in the emphasis of matter is not disclosed. It was BDT 795.7m at Jun-2026 [7 p.1].

Low- or non-earning assets in 2025, as printed: house property of BDT 1,131.5m earned BDT 4.8m of rent, and the Motijheel building within it (BDT 898.4m) is not rented; FDRs of BDT 483.5m with five NBFIs on which no interest is accrued; the BDT 396.6m investment in the loss-making subsidiary; and shares and unit funds of BDT 1,409.9m (book) that paid BDT 8.1m of dividends [1 p.215] [1 p.221] [1 p.197] [1 p.223]. Outstanding premium of BDT 1,751.2m and sundry debtors of BDT 1,479.9m also sit in the asset base [1 p.197]. When and from whom the Motijheel land was bought, and who controls ACAML and Uni.Fin.Solution Ltd., are not disclosed (searched: notes 13.03, 13.04 and 35, directors' report).

Rates around the fund [21]. Bangladesh Bank's policy rate was 4.75% at Dec-2021, 7.75% at Dec-2023 and 10.00% at Dec-2024 and Dec-2025, and 9.50% from 30-Jul-2026; the December T-bill yield was 11.02% (2023), 11.59% (2024) and 10.48% (2025); the latest auction cut-offs were 8.37% (91-day) and 8.60% (364-day) on 2-Nov-2026 and 9.27% for the 10-year bond on 25-Oct-2026. The scheduled banks' weighted average deposit rate was 6.31% at Jun-2025 and 6.21% at Jun-2026. Meghna Life's printed yield on life fund was 4.74% in 2025, 1.57pp below the Jun-2025 bank deposit rate [1 p.14] [25]. Bangladesh Bank's December auction cut-off history is not in our data at 3-Nov-2026; the December T-bill series shown is Bangladesh Bank's figure as reported to the IMF.

Life fund and dividend: BDT 15,735.1m at Dec-2025 after five years of decline; 15% cash

The life fund was BDT 15,634.6m in 2017, rose to BDT 18,896.4m in 2020 and was BDT 15,735.1m in 2025 [5 p.21] [1 p.14]. The change in 2025 was a fall of BDT 318.9m, after a fall of BDT 696.9m in 2024 [25]. Rebuilding the 2025 revenue account from its printed lines reproduces the closing fund to the taka [1 p.198] [1 p.199] [25]. The fund was 89.1% of total assets at Dec-2025 [25].

The revenue account carries the shareholders' dividend inside its other expenses: BDT 63.6m in both 2024 and 2025, 15% of paid-up capital [1 p.198] [25]. The board recommended the 15% cash dividend for 2025 on 28 June 2026 with a record date of 23 July 2026; DSE carried the disbursement notice on 27 September 2026 [17]. The annual report gives total actuarial surplus of BDT 859.5m [1 p.11], and its credit rating summary states that surplus for the valuation period increased by 6.3% to BDT 683.5m [1 p.89]. The abstract of the actuarial valuation and the shareholders' share of the surplus were not found in the pages read.

The annual report highlights print EPS of Tk 1.72, a dividend payout ratio of 87.21% and NAV per share of Tk 34.78 for 2025 [1 p.10], and net assets of BDT 1,474.8m [1 p.11]. The EPS and NAV notes found in the statements belong to the subsidiary (EPS Tk (0.44), NAV Tk 9.53) [1 p.258] [1 p.259]. For 2024 the company announced EPS of Tk 1.61 and NAV per share of Tk 22.90 [17].

Walking the fund through each year's revenue account, 2021-2025: in every year the opening fund equals the prior year's printed closing fund, so no prior-period adjustment was taken to the fund [5 p.82] [3 p.108] [1 p.199] [25]. Premium, investment and other income less claims and expenses of management was BDT 22.8m in 2021, BDT -834.4m in 2023 and BDT 13.4m in 2025; dividend, tax, share losses and depreciation came on top [25]. The dividend in each year's revenue account is the prior year's: BDT 100.6m in 2021 (30% for 2020 on BDT 335.2m of capital), BDT 96.4m in 2022 (25% for 2021, 15% cash and 10% bonus), BDT 84.8m in 2023 (20% cash for 2022) and BDT 63.6m in 2024 and 2025 (15% for 2023 and 2024) [5 p.81] [3 p.107] [1 p.198] [22] [17]. The 15% for 2025 is not in the 2025 accounts.

The DSE interim figures show the same pattern each year: deficits for nine months and a rise in the fund in the fourth quarter. The nine-month change was BDT -1,869.3m in 2022, BDT -1,995.7m in 2023, BDT -1,643.2m in 2024 and BDT -806.2m in 2025; the fourth-quarter rise was BDT 1,109.6m, BDT 827.1m, BDT 946.3m and BDT 487.3m [23] [22] [17] [1 p.14] [25]. The annual valuation surplus in the directors' reports was BDT 581.8m (2021), BDT 568.3m (2022; the highlights page prints Tk 5.83 crore), BDT 382.4m (2023), BDT 643.1m (2024) and BDT 683.5m (2025, 'surplus for the valuation period') [5 p.66] [4 p.74] [4 p.10] [3 p.86] [2 p.60] [1 p.89]. Full year less the nine-month revenue account gives the fourth quarter line by line (derived): in Q4 2025 net premium was BDT 1,523.8m, 54% of the year's BDT 2,813.3m, interest, rent and dividend BDT 272.4m, claims BDT 821.4m, management expenses BDT 253.5m and other expenses, including the year's tax provision and the dividend, BDT 247.9m; in Q4 2024 net premium was BDT 1,855.0m and claims BDT 601.6m [8 p.6] [1 p.198] [1 p.199] [25]. At Dec-2025 outstanding premium was BDT 1,751.2m, 'premium short deposit' BDT 1,425.0m and cash in hand BDT 570.3m [1 p.197] [1 p.220]. Note 15 states: "The amount represents premium due as at December 31, 2025 for which grace period revibal option has not been expired within the above date." It splits the balance into Ekok Bima BDT 1,082.9m, Loko Bima BDT 319.1m, Islami Bima BDT 333.7m and the Smart division BDT 15.5m [1 p.217]; the accounting policy recognises premium due up to December "for which grace period has not expired and previous installment have been paid" [1 p.206].

How the printed EPS of Tk 1.72 and NAV per share of Tk 34.78 are computed is not disclosed: the statement of changes in equity carries share capital and no reserves, and the EPS and NAV notes found belong to the subsidiary [1 p.10] [1 p.200] [1 p.259]. The shareholders' share of the valuation surplus is not printed; the surplus less the bonus allocated is BDT 238.1m (2021), BDT 154.1m (2022), BDT 116.8m (2023) and BDT 64.3m (2024) on our derivation [25].

Balance sheet and audit: unmodified opinion; BDT 1,137.5m of FDRs with the seven named institutions

The auditor's opinion reads: "In our opinion, the accompanying consolidated and separate financial statements present fairly, in all material respects, the consolidated and separate financial position of the Company as at 31st December 2025, and of its consolidated and separate financial performance and consolidated and separate cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), The Insurance Act 2010, The Insurance Rules 1958, Bangladesh Securities and Exchange Act 2020, The Income Tax Act 2023 and Other applicable laws and regulations." [1 p.188]

The emphasis of matter paragraph reads in full: "We draw attention to the financial statements, which indicates that the Company has deposits and other balances maintained with Exim Bank PLC, First Security Islami Bank PLC, Social Islami Bank PLC, Union Bank PLC, People's Leasing and Financial Services Ltd., International Leasing and Financial Services Ltd., and Reliance Finance Ltd. (formerly Aviva Finance Ltd.). This is certain that these institutions are experiencing financial distress, restructuring, merger, or liquidation-related proceedings, which may affect the recoverability and timing of realization of such balances. The ultimate outcome of these matters remains uncertain. Our opinion is not modified in respect of this matter." [1 p.188]. In note 20, FDRs with those seven institutions total BDT 1,137.5m, 31.3% of FDRs and 7.2% of the life fund [1 p.220] [1 p.221] [25]. DSE carried a notice of the emphasis of matter on 7 July 2026 [17].

Note 20 adds, in the company's words: "We have an investment in ILFSL, PLFSL,Premier Leasing, Bangladesh Finance & Reliance ( Aviva) investment amount are 193.50 ,70.00, 30.00,100.00 & 90.00 million respectively made in the year 2007-2008. The NBFIs are in now going concern threat. On the other hand they are not providing the interest to the company in regular intervals and no interest has been accrued in the accounts." [1 p.221]. These five total BDT 483.5m [25]. The notes read show no provision against them.

The other key audit matters cover the provision for income tax (Tk 1.121 billion at Dec-2025), investments of Tk 10,522,030,397, an agent balance of Tk 114.06 million, IFRS 16 leases, fixed-asset purchases of Tk 31,418,399, management expense and premium collection [1 p.189] [1 p.190] [1 p.191] [1 p.192] [1 p.193]. On the agent balance the auditor writes: "The Company has reported an amount of TK. 114.06 million against Agent's balance, Which was Tk. 117.46 million in 2024. Current Years balance is 0.65% of the total assets. The balance was lying with the Field Officers of the company due to holding the collected premium instead of depositing in to the banks." [1 p.190]. On investments the auditor writes that it checked "the ISIN report provided by National Credit & Commerce Bank Ltd. only, to verify the investment balance recorded under its name" [1 p.190].

On income tax the key audit matter reads: "Provision for income tax requires the consideration of incomes from both 'actuarial surplus' and 'gross external incoming in accordance with the Income Tax Ordinance (ITO 1984). For this purpose, after the year-end, the appointed Actuary of the Company provides a summary and valuation of the policies as per Form ' as stated in the insurance Act 1938(as amended in 2010)." [1 p.189]. Advance income tax was BDT 1,126.0m at Dec-2025, after an adjustment of BDT 274.6m in the year [1 p.219].

Outstanding premium was BDT 1,751.2m, sundry debtors BDT 1,479.9m and the agents balance BDT 114.1m at Dec-2025, together 18.9% of total assets [1 p.197] [25]. Of sundry debtors, BDT 1,425.0m is 'Premium short deposit', of which the note states BDT 421.1m was subsequently adjusted [1 p.220]. Advance against field officers was BDT 226.4m and advance for purchase BDT 88.6m [1 p.219]. Cash in hand was BDT 570.3m at Dec-2025; the note states it accumulated mostly in the last week of December and BDT 529.2m was deposited by 14 January 2026 under an IDRA letter dated 7 December 2025 [1 p.221]. At Jun-2026 cash and other balances in hand were BDT 59.8m [7 p.1].

Cash flow. Net cash from operating activities was negative in each of 2021-2025 and the statement is on the direct method, with interest, dividend and rent received inside operating activities [1 p.201] [3 p.110] [5 p.84]. Premium collected less claims paid was BDT 138.1m in 2021, BDT -627.0m in 2023 and BDT 27.6m in 2025 [25]. In 2023 'payment for re-insurance, management expenses, commission and others' was BDT 1,928.7m against BDT 922.1m of expenses of management in the revenue account, and sundry debtors rose by BDT 907.7m to BDT 1,226.8m [3 p.110] [3 p.106] [25]. Sundry debtors were BDT 1,479.9m at Dec-2025, of which 'premium short deposit' was BDT 1,425.0m (BDT 1,408.2m at Dec-2024) [1 p.220]. The note gives no definition or ageing of 'premium short deposit' beyond the BDT 421.1m subsequently adjusted (searched: note 18 AR2023-AR2025 and the key audit matter on premium).

The company's reconciliation for 2025 starts from the BDT 318.9m decrease in the life fund, adds back BDT 319.3m of depreciation, tax provision, share losses and dividend, net of BDT 13.0m of gains on sale of shares (BDT 1.1m) and cars (BDT 11.9m), deducts BDT 90.6m of tax paid and BDT 215.9m of increase in accrued interest, and adds BDT 86.8m of decrease in outstanding premium; other working-capital lines net to the BDT 177.7m outflow [1 p.225]. In 2024 sundry debtors took BDT 230.6m [1 p.225]. Tax paid was BDT 90.6m in 2025 against a provision of BDT 201.8m; the provision note shows BDT 274.6m adjusted in 2025 and BDT 20.0m in 2024 [1 p.201] [1 p.209]. Assessment years behind the BDT 1,121.4m provision are not listed (searched: note 9, note 17 on advance tax).

2026 so far: deficits of BDT 569.02m for nine months; fund BDT 15,166.1m at Sep-2026

For Q1 2026 the company announced a deficit of BDT 459.13m on its consolidated life revenue account, against BDT 781.01m in Q1 2025; for Q2 a deficit of BDT 75.31m against a surplus of BDT 64.48m; and for Q3 a deficit of BDT 34.58m against BDT 89.64m [17]. The Q3 2025 deficit was posted as BDT 89.63m in November 2025 and as BDT 89.64m in the November 2026 comparison [17]. The nine-month deficit is BDT 569.02m for 2026 and BDT 806.16m for 2025 on our sum of the quarters [25]. The life fund was BDT 15,275.99m at Mar-2026, BDT 15,200.69m at Jun-2026 and BDT 15,166.11m at Sep-2026 [17].

The DSE quarterly figures reconcile to the fund: each quarter's deficit or surplus equals the change in the announced fund within BDT 0.01m [25]. In both 2024 and 2025 the fund rose in the fourth quarter, by BDT 946.31m and BDT 487.27m, after deficits in the first nine months [17] [1 p.14] [25]. The fourth-quarter composition is not disclosed in the filings read.

The H1 2026 statements show gross premium of BDT 775.2m, investment income of BDT 316.6m, claims and surrenders of BDT 1,335.8m, commission of BDT 87.6m, other management expenses of BDT 192.8m and other expenses of BDT 11.6m, giving a deficit of BDT 534.4m [7 p.6]. Net operating cash flow per share was Tk (14.16) for H1 2026 and Tk (16.70) for the nine months [7 p.4] [17]. The provision for income tax fell to BDT 1,011.4m at Jun-2026 from BDT 1,121.4m [7 p.1]. The Q3 2026 statements are not in the corpus at 2-Nov-2026; the Q3 figures here are the DSE-announced ones.

The analystbro filing list was checked again on 3-Nov-2026: it holds the Q1 and Q2 2026 statements and no Q3 2026 statements, so the Q3 2026 figures in this note remain the DSE-announced ones of 1-Nov-2026 [17].

Peers: claims at 101.46% of gross premium; outgo rank 4 of 5 from lowest

The peer set is the four DSE life insurers with published AnalystBro notes and FY2025 accounts in the corpus: Rupali Life, Delta Life, Popular Life and Pragati Life, each on the company basis. Rupali Life and Popular Life received qualified opinions for 2025 and are starred [13] [15]; Delta Life's opinion is unqualified and Pragati Life's unmodified with Other Matters [14] [16]. Popular Life does not publish an IDRA key-indicator page; its ratios are derived from its premium, claims and management expense figures and labelled so [11 p.115] [11 p.134].

Meghna Life printed claims at 101.46% of gross premium; Rupali Life printed 68.91%, Delta Life 81.74% and Pragati Life 52.80%, and Popular Life's derived figure is 90.34% [1 p.13] [9 p.26] [10 p.17] [12 p.126] [25]. Its printed overall management expense ratio was 24.68%; Rupali Life printed 34.09%, Delta Life 28.05% and Pragati Life 30.75% [1 p.13] [9 p.26] [10 p.17] [12 p.126]. On our outgo measure, claims ratio plus management expense ratio, Meghna Life ranks 4 of 5 from lowest, and 3 of 3 without the starred peers [25].

The printed conservation ratio was 73.20% at Meghna Life, 60.60% at Rupali Life, 77.14% at Delta Life and 78.67% at Pragati Life; Meghna Life ranks 2 of 4 from lowest, and 1 of 3 without the starred peer [1 p.14] [9 p.26] [10 p.17] [12 p.126] [25]. The printed yield on life fund was 4.74%, 5.06%, 9.45% and 8.18% in the same order. Gross premium growth (derived) ranks Meghna Life 1 of 5 from lowest [25]. Lapse ratios are not compared: the peers' printed lapse definitions differ.

Governance: 12 directors incl. three independents; sponsors and directors 30.11%

The 2025 annual report lists twelve directors and three independent directors [1 p.42]. The board attendance table for 2025 shows eight meetings: Mr. Nizam Uddin Ahmed (Chairman, representative of Nizam-Hasina Foundation) attended 7; Mr. Nasir Uddin Ahmed (Vice-Chairman), Mr. Riaz Uddin Ahmed, Mrs. Jannatul Ferdous, Karnaphuli Insurance PLC (represented by Mr. Md. Zahid Anwar Khan), Mrs. Umme Khadiza Meghna, Nizam-Hasina Foundation Hospital (represented by Mr. Moin Uddin), Mrs. Sabital Ferdoushi, Mrs. Dilruba Sharmin and Prof. Md Ansar Ali attended 8; Mrs. Sharmin Nasir attended 6; Md. Hafizullah attended 7 [1 p.99]. The same page states that "all Directors attended all eight (8) Board meetings during 2025" [1 p.99]. Board honorarium in the table totals Tk 736,000 [1 p.99]; the revenue account shows directors' fees of Tk 647,200 [1 p.198].

The independent directors are Professor Md. Ansar Ali (appointed 01.07.2023, term to 30.06.2026, with a second term subject to shareholder approval at the AGM), Mr. Md. Hafijzullah (01.12.2024 to 30.11.2027) and Dr. Syeda Nasrin (31.12.2025 to 30.12.2028) [1 p.106]. The BSEC compliance annexure states "There are three Independent Directors in Board" and names Prof. Ansar Ali and Md. Hafizulla [1 p.116]. In 2025 Mrs. Sharmin Nasir, a director, gifted 856,936 shares to her spouse Mr. Nasir Uddin Ahmed, also a director; in 2024 Mr. Nizam Uddin Ahmed and Mrs. Hasina Nizam transferred 1,166,143 and 869,307 shares to Nizam-Hasina Foundation [17].

Sponsors and directors held 30.11% at Dec-2025, institutions 18.81% and general shareholders 51.08%, across 7,018 shareholders [1 p.111]. The largest named holdings were Mr. Nasir Uddin Ahmed 6.14%, Karnaphuli Insurance 5.73% and Nizam-Hasina Foundation 4.80% [1 p.111]. Key management are Md. Tarek FCA, Chief Executive Officer (In-Charge); Enamul Haque Khan, Assistant Managing Director and Company Secretary (appointed company secretary from 4 May 2025); Mohammad Pana Ullah, Head of Accounts; and Mohammad Furaduzzaman, Deputy Vice President and Head of Internal Audit and Compliance [1 p.42] [17]. The BSEC annexure remark names N. C. Rudra as MD/CEO [1 p.118]. The related-party transactions listed in note 35 are the subsidiary's loan (BDT 75.0m) and advance, and rent of Tk 2,160,000 to Nizam-Hasina Foundation [1 p.224].

The audit committee table shows four meetings in 2025, each attended by Prof. Md Ansar Ali (Chairman), Mr. Nasir Uddin Ahmed and Mr. Riaz Uddin Ahmed [1 p.101]; the committee report lists Md. Moin Uddin FCS as a fourth member [1 p.161]. The nomination and remuneration committee met twice, chaired by Md. Hafizullah [1 p.102]; the risk management committee met once, chaired by Dr. Syeda Nasrin [1 p.102]; the investment committee met once, chaired by Mr. Moin Uddin FCS with the chief executive as a member [1 p.103]; the policyholders' protection and compliance committee met once, chaired by Mr. Nasir Uddin Ahmed [1 p.104]. The BSEC annexure pages read (p.116-130) mark every applicable condition as complied [1 p.116] [1 p.130]. The IDRA corporate governance certificate by A. Wahab & Co., dated 30 July 2026, states that the company complied with the IDRA Corporate Governance Guideline, 2023 [1 p.131]; the IDRA compliance table marks no condition as not complied [1 p.132] [1 p.136]. That table prints "Audit Committee comprises 3 members" [1 p.134], an Investment Committee of "5 members with quorum met by 3 members" and a Policy Holder's Protection & Compliance Committee that "comprises 3 members" [1 p.135], beside the 3-member and 4-member audit committee lists on p.101 and p.161, the 4-member investment committee table on p.103 and the 5-member policyholders' committee table on p.104 [1 p.101] [1 p.161] [1 p.103] [1 p.104]. The same 2025 table prints "Four Audit Committee meetings held in 2023" and "Corporate governance guideline report submitted to IDRA before 31st January 2024" [1 p.134] [1 p.136].

DSE events 2021-2026. The FY2021 accounts went to the board on 4 September 2022 and the Q1 and Q2 2022 statements together on 22 September 2022; the reason for the timing is not stated in the posts [23]. Bonus shares for 2020 and 2021 were credited in November 2021 and November 2022, and cash dividends of 20% (2022), 15% (2023), 15% (2024) and 15% (2025) followed [23] [22] [17]. CRAB rated the company AA3 with a Stable outlook in November 2024 and again in August 2026 [17]. The company secretary changed on 1 October 2024 (Mr. Sheikh Abu Talha) and 4 May 2025 (Mr. Enamul Haque Khan) [22] [17]. The 2024 transfers to Nizam-Hasina Foundation were made under BSEC letter BSEC/SRIC/2005-06/1130/(Part-III)-151 dated 28 May 2024; the letter's terms are not in the posts [22].

Multiples: 0.13x the life fund, dividend yield 3.07%

At BDT 48.9 on 29-Oct-2026 the market value was BDT 2,074m [24] [25]. That is 0.13x the Dec-2025 life fund and 0.14x the Sep-2026 fund, a cash dividend yield of 3.07% on the 15% dividend, 28.4x the EPS of Tk 1.72 and 1.41x the NAV per share of Tk 34.78, both as printed in the annual report highlights [1 p.10] [25]. At year ends the market value was 0.13x the life fund in 2017, 0.21x in 2023 and 0.13x in 2025 [5 p.21] [1 p.14] [25]. The price was 27.0% below the 52-week high close of BDT 67.0 (13-Jul-2026) and 15.1% above the low close of BDT 42.5 (13-Nov-2025) [24] [25].

What's next: FY2026 year end; accounts inferred for 27-30 Jun 2027 (narrower range)

The items below are dated and sourced; Fri/Sat are excluded from every inferred range (DSE trades Sunday to Thursday). The Q3 2026 results (board meeting 29-Oct-2026) are covered above. The FY2025 AGM on 20-Aug-2026 has passed; the DSE notice of 27-Sep-2026 reports the dividend disbursed, and the outcome of the other AGM business, including Professor Ansar Ali's second term, is not in the documents read [17] [1 p.106]. No board meeting date has been notified for the FY2026 accounts. Precedents for the annual accounts are the board approval dates 9 May 2021 (FY2020), 04 September 2022 (FY2021; the same page is also dated 03 October 2022), 27 June 2024 (FY2023), 30 June 2025 (FY2024) and 28 June 2026 (FY2025); for FY2022 the auditor's report and statements are dated 27 July 2023 (auditor's report date) [4 p.92] [6 p.138] [5 p.83] [3 p.109] [2 p.137] [1 p.200].

The 2022-2024 quarterly statements print no signing or board date (page images checked); the quarterly ranges rest on the 2025 and 2026 board dates in the DSE archive.

Risks: distressed-bank deposits, premium, claims and interim deficits

Each risk below is tied to a filing. The line it moves is given where a filing links the risk to a line; otherwise it reads 'None disclosed'.

Key questions: six signposts in the FY2026 accounts

For shareholders, returns come from the cash dividend appropriated in the revenue account: BDT 63.6m (15%) in each of 2024 and 2025 [1 p.198]. These are facts about the business; this note draws no conclusion about the share price.

FAQ

What did the auditor say about Meghna Life's 2025 accounts?

M.Z. Islam & Co. gave an unmodified opinion with one emphasis of matter on deposits and other balances with Exim Bank, First Security Islami Bank, Social Islami Bank, Union Bank, People's Leasing, International Leasing and Reliance Finance, and listed eight key audit matters [1 p.188] [1 p.189].

How much premium did Meghna Life write in 2025?

Gross premium was BDT 2,826.6m, down 15.90%: first year BDT 456.4m, renewal BDT 2,305.2m and group and health BDT 65.0m [1 p.13].

How big is the life fund?

BDT 15,735.1m at Dec-2025, BDT 15,200.7m at Jun-2026 and BDT 15,166.1m at Sep-2026 (DSE-announced); it was BDT 18,896.4m at Dec-2020 [1 p.196] [7 p.1] [17] [5 p.21].

Did Meghna Life make a surplus in 2026 so far?

No. It announced revenue-account deficits of BDT 459.13m, BDT 75.31m and BDT 34.58m for Q1, Q2 and Q3 2026 [17].

What dividend did Meghna Life declare for 2025?

15% cash, BDT 1.50 a share, record date 23-Jul-2026; DSE carried the disbursement notice on 27-Sep-2026 [17].

How does Meghna Life compare with peers?

On FY2025 key indicators its printed claims ratio (101.46%) was above Rupali, Delta and Pragati Life, and its printed management expense ratio (24.68%) below all three; its conservation ratio was 73.20% [25].

Sources

1. Meghna Life Insurance PLC Annual Report 2025 (key financial indicators, auditor's report by M.Z. Islam & Co. dated 28 June 2026, financial statements, notes, governance) · link · accessed 2026-11-02
2. Meghna Life Insurance PLC Annual Report 2024 (auditor's report by Ashraf Uddin & Co. dated 30/06/2025; statements approved 30 June 2025) · link · accessed 2026-11-02
3. Meghna Life Insurance Company Ltd. Annual Report 2023 (statements approved 27 June 2024) · link · accessed 2026-11-02
4. Meghna Life Insurance Company Ltd. Annual Report 2022 (auditor's report by Ashraf Uddin & Co. dated 27/07/2023) · link · accessed 2026-11-02
5. Meghna Life Insurance Company Ltd. Annual Report 2021 (Key Financial Indicators 2017-2021; statements approved 04 September 2022) · link · accessed 2026-11-02
6. Meghna Life Insurance Company Ltd. Annual Report 2020 (statements approved 9 May 2021) · link · accessed 2026-11-02
7. Meghna Life Insurance PLC un-audited financial statements, six months to 30 June 2026 (dated 30 July 2026) · link · accessed 2026-11-02
8. Meghna Life Insurance PLC un-audited financial statements, nine months to 30 September 2025 (life revenue account with nine-month 2024 comparatives; dated 30 October 2025) · link · accessed 2026-11-03
9. Rupali Life Insurance PLC Annual Report 2025 (Key Financial Indicators) · link · accessed 2026-11-02
10. Delta Life Insurance Company Ltd. Annual Report 2025 (Key Financial Indicators, company) · link · accessed 2026-11-02
11. Popular Life Insurance PLC Annual Report 2025 (premium, claims, management expenses, life fund) · link · accessed 2026-11-02
12. Pragati Life Insurance PLC Annual Report 2025 (Key Financial Indicators) · link · accessed 2026-11-02
13. AnalystBro published note rupalilife-analysis-2026-10-31 (checked note; source of the FY2025 audit-opinion label) · link · accessed 2026-11-02
14. AnalystBro published note deltalife-analysis-2026-10-31 (checked note; source of the FY2025 audit-opinion label) · link · accessed 2026-11-02
15. AnalystBro published note popularlif-analysis-2026-10-31 (checked note; source of the FY2025 audit-opinion label) · link · accessed 2026-11-02
16. AnalystBro published note pragatilif-analysis-2026-10-31 (checked note; source of the FY2025 audit-opinion label) · link · accessed 2026-11-02
17. Dhaka Stock Exchange company news archive for MEGHNALIFE, 1-Nov-2024 to 1-Nov-2026 (company disclosures) · link · accessed 2026-11-02
18. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-02
19. The Business Standard, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-02
20. Insurance Development and Regulatory Authority (IDRA), Annual Report 2024-25: Annex 10 life gross premium and market share, Annex 14 life claims amount and settlement, Annex 16 life management expense actual vs allowed; pipeline/sector_data/insurance/life_*.csv · link · accessed 2026-11-03
21. Bangladesh Bank: policy (repo) rate history from MPC resolutions and Monetary Policy Statements (sector_data/rates/bd_policy_rate_bb_history.csv); treasury auction cut-off yields (BB treasury page); Scheduled Banks Statistics weighted average deposit rate; IMF MFS T-bill yield (BB-reported) · link · accessed 2026-11-03
22. Dhaka Stock Exchange company news archive for MEGHNALIFE, 1-Nov-2022 to 31-Oct-2024 (company disclosures) · link · accessed 2026-11-03
23. Dhaka Stock Exchange company news archive for MEGHNALIFE, 1-Nov-2021 to 31-Oct-2022 (company disclosures) · link · accessed 2026-11-03
24. AnalystBro price data (TradingView feed): DSE:MEGHNALIFE daily bars to 29-Oct-2026 · link · accessed 2026-11-02
25. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-11-02