Takaful Islami Insurance financial analysis: 83.5% combined ratio and an IDRA board order under writ (Oct 2026)

A Tk 810m-premium Shariah-based general insurer: 2025 profit Tk 52.76m, combined ratio 83.5% and an 'except for' audit opinion

What it is. Takaful Islami Insurance PLC (DSE: TAKAFULINS) describes itself as 'one of the leading insurance Companies doing insurance business on the basis of Islamic Shariah in the private sector' that underwrites 'all classes of non-life insurance business in Bangladesh' through 52 branches [1 p.7]. It was listed on the DSE on 3 November 2008 [1 p.6]. In 2025 it wrote Tk 809.93m of gross premium, including Tk 108.61m of public-sector business, and kept Tk 574.75m after reinsurance [1 p.113]. It owns 99.94% of Takaful Islami Securities Limited, a DSE brokerage [1 p.97]. This note uses the company's separate (company-basis) statements throughout, and labels consolidated figures where they appear.

Where it stands. Gross premium rose 12.5% in 2025 and net premium 19.8% [36]. Underwriting profit (the revenue account's 'Profit transferred to profit & loss account') fell to Tk 57.07m from Tk 72.61m [1 p.89]. Profit after tax and deferred tax was Tk 52.76m against Tk 64.98m, and company EPS Tk 1.24 against Tk 1.53 [1 p.110] [1 p.88]. Return on average net assets was 6.5% [36]. The board recommended a 10% cash dividend for 2025, the same rate as for 2024 [1 p.70]; DSE recorded its disbursement on 2-Jul-2026 [32]. For January-September 2026 the company reported EPS of Tk 1.88 against Tk 1.13 [6 p.2].

Shareholder returns. Profit has two sources. Underwriting profit was Tk 57.07m in 2025 and investment and other income Tk 48.13m [1 p.88]; investment and other income was 45.7% of the two together, the highest share in the 2020-2025 series [36]. On one combined-ratio definition (net claims incurred plus expenses of management plus agent commission less commission on reinsurance, over net premium) the 2025 figure was 83.5% [36]. Claims took 3.5 points of that; expenses net of reinsurance commission took 80.0 points [36]. The reserve for exceptional losses is set at '3% on net premium income' and was Tk 17.24m in 2025, an appropriation of profit [1 p.110]. The 10% dividend (Tk 1.00 a share) equals 80.6% of 2025 company EPS [36].

• Does the 'except for' wording carry over, and does the FY2026 auditor describe a basis for it? Signpost: the FY2026 auditor's report (board meeting inferred 12-Apr-2027 to 30-May-2027; no date notified).
• Does commission stay at nil per quarter, as in July-September 2026? Signpost: the FY2026 revenue accounts.
• What is the outcome of Writ Petition No. 286 of 2026 on the IDRA board order? Signpost: a DSE notice or the FY2026 annual report; no date notified.
• Is the Tk 45,60,03,136 tax claim resolved? Signpost: note 65 in the FY2026 accounts.
• Is the NCR rating renewed after its 11-Jan-2027 validity date? Signpost: a DSE credit-rating notice (inferred 12-Jan-2027 to 13-Jan-2027).

Marine cargo is 64.1% of gross premium; the company keeps 71.0% 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, agent commission and management expenses from the rest; what remains in the revenue account is the underwriting profit [1 p.89]. Takaful Islami reserves 100% of net premium for marine hull and 40% for other classes [1 p.89]. Interest, dividend and share-sale income are earned outside the revenue accounts and added in the profit and loss account [1 p.88].

Shariah framing. The company's vision is 'to become a leading Shariah based General Takaful Service Provider to the Nation' [1 p.9], and the annual report carries a Shariah council report [1 p.32]. Its accounts follow the Insurance Act 2010 forms: the balance sheet follows Form 'A' and each class revenue account Form 'F' [1 p.97]. The directors' report states that the company holds Tk 6,470.50 lac 'in TDR mode with Islami Banks and Financial Institutions' and Tk 841.50 lac 'in FDR mode with conventional Banks & Financial Institutions' [1 p.69]. Its principal bankers are Islami Bank Bangladesh PLC, Al-Arafah Islami Bank PLC and Shahjalal Islami Bank PLC [1 p.6].

Classes. Marine cargo brought Tk 518.86m of gross premium in 2025 (64.1%), fire Tk 201.98m (24.9%), miscellaneous Tk 66.99m (8.3%), motor Tk 18.66m (2.3%) and marine hull Tk 3.44m (0.4%) [1 p.113] [36]. The directors' report states that 'marine insurance completely depends on imports' [1 p.68]. Underwriting results differed by class: marine cargo transferred Tk 62.22m to the profit and loss account, motor Tk 2.03m and miscellaneous Tk 2.71m, and fire lost Tk 8.91m and marine hull Tk 0.98m [1 p.88]. Fire has shown a loss in each of 2023, 2024 and 2025 (Tk 4.21m, Tk 4.41m and Tk 8.91m) [2 p.86] [1 p.88].

Retention by class. The company kept 84.1% of marine cargo premium and 95.6% of motor premium; it kept 49.8% of fire, 29.0% of miscellaneous and 15.2% of marine hull [36]. Fire's combined ratio on net premium was 106.2% and marine cargo's 78.1% [36]. Expenses of management are charged to classes 'on product basis of Gross Premium earned or direct business'; marine cargo carried 68.28% of them (Tk 286.85m) [1 p.113].

Public-sector business. Of 2025 gross premium, Tk 108.61m was public-sector business and Tk 701.31m private [1 p.113]. On public business the company ceded Tk 99.10m to reinsurers [1 p.127]; on miscellaneous it wrote Tk 43.77m of public premium [1 p.113]. The amount due from Shadharon Bima Corporation fell to Tk 8.73m from Tk 14.83m after 'Loss Recovery' of Tk 6.11m [1 p.104].

Reach and people. The company had 958 employees and 52 branches at end-2025 [1 p.6]. Note 66 lists 1 chief executive officer, 7 additional managing directors, 7 deputy managing directors, 7 assistant managing directors and 175 vice presidents among the 958 [1 p.124]. Salary and allowances in expenses of management were Tk 335.53m in 2025 against Tk 296.49m [1 p.114].

Combined ratio 83.5% in 2025 on one definition; across 2020-2025 the range is 68.6% (2020) to 86.5% (2024)

One definition. We compute the combined ratio as net claims incurred plus expenses of management (revenue accounts) plus agent commission, less commission on reinsurance, all over net premium ('Premium less Re-insurances'), from the consolidated business revenue account of each year, which combines the company's classes and excludes the subsidiary [5 p.76] [3 p.90] [2 p.87] [1 p.89] [36]. The same definition is used for the peers below. It excludes the change in the unexpired-risk reserve and is therefore not one minus the underwriting margin. The company prints its own 'Accounting Rations Pertaining to Insurance Sector' for 2025: management expenses 51.87% of gross premium and 73.09% of net premium, net claims 2.30% of net premium (a figure that does not equal the revenue-account net claims of Tk 20,004,870 over net premium, 3.5%), underwriting result 9.93% of net premium [1 p.126].

Claims. Net claims incurred were Tk 20.00m in 2025, 3.5% of net premium, against Tk 15.21m and 3.2% in 2024 [1 p.89] [36]. The highlights page prints 'Net Claim' of 132.01 lac for 2025 and 'Gross Claim' of 242.26 lac [1 p.28]; the revenue account shows 'Paid during the year' of Tk 13,201,516 and outstanding claims rising to Tk 21,324,211 from Tk 14,520,857 [1 p.89]. We use the revenue-account figure of Tk 20,004,870 in every ratio. Gross claims paid, as listed in the directors' report, were 1,723.94 lac in 2023, 592.00 lac in 2024 and 242.26 lac in 2025 [1 p.69].

Expenses of management. The revenue-account line rose to Tk 420.13m from Tk 374.26m, 51.9% of gross premium against 52.0% [1 p.89] [36]. The 2025 schedule shows salary and allowances of Tk 335.53m, festival and incentive Tk 20.58m, office rent Tk 12.04m and SBC expenses on public business Tk 8.20m [1 p.114]. Note 23 prints a 'CEO (TK)' column total of Tk 3,420,000 and an 'Offiers (TK)' column total of Tk 123,528,883 under 'PAYMENT TO DIRECTORS , CHIEF EXECUTIVE OFFICER' of Tk 129,135,256 [1 p.115]. The filings read do not state the statutory management-expense limit for 2025 or compare the company with it.

Agent commission. Agent commission was Tk 105.20m, 13.0% of gross premium [1 p.89] [36]; the company's own ratio page prints 'Commission Paid as % of Gross Premium' of 14.99 [1 p.126], a figure that does not equal the revenue-account line over gross premium. The chairman writes that IDRA 'has suspended the individual agent licenses of non-life insurers with effect from January 1, 2026' and that 'there is no scope for any Insurance Company to pay commission to any individual insurance agent' [1 p.22]. In 2021 the line was Tk 31.43m against Tk 77.14m in 2020 [5 p.76].

Reinsurance. Commission on reinsurance was Tk 65.65m in 2025 against Tk 71.49m [1 p.89]. Retention was 71.0% of gross premium, the highest in 2019-2025; it was 50.3% in 2019 [36]. Note 18 shows Tk 136.08m ceded during 2025 to Shadharon Bima Corporation and overseas reinsurers, with Tk 54.04m of commission and profit commission received [1 p.112].

Underwriting margin. Underwriting profit was 9.9% of net premium in 2025, against 15.1% in 2024 and 25.9% in 2019 [36]. The chairman's review states that 'underwriting profits have been a slight decreased compared to last year' [1 p.22]; the revenue accounts show a 21.4% fall, from Tk 72.61m to Tk 57.07m [1 p.89] [36].

Investment and other income Tk 48.13m in 2025, 45.7% of underwriting profit plus investment income

Composition. Investment and other income in the profit and loss account was Tk 48.13m in 2025: interest income Tk 41.96m, dividend income Tk 0.67m, profit on sale of shares Tk 0.02m, other income Tk 1.89m and profit on sale of assets Tk 3.60m [1 p.88]. Interest income comprised profit on TDR Tk 32.50m, interest on fixed deposit Tk 6.29m, interest on BGTB Tk 3.08m and profit on SND Tk 0.09m [1 p.115]. Profit on sale of shares was Tk 8.46m in 2024 [1 p.88].

Deposits. At end-2025 the company held MTDR of Tk 647.05m and FDR of Tk 84.15m, plus bank balances of Tk 55.50m [1 p.105]. The Quard-E-Hasana of Tk 110.41m from Islami Bank Bangladesh is drawn 'Against term deposit of Tk.-12,27,00,000/-', and the cash withdrawal facility of Tk 6.30m from Al Arafah Islami Bank 'Against term deposit of Tk. -70,00,000/-' [1 p.111]. The filings read give no list of deposits by bank.

Shares. Investments in shares were carried at a fair value of Tk 50.86m; their cost was Tk 120.04m, a fair-value reserve of minus Tk 69.18m [1 p.110]. Other comprehensive income was minus Tk 14.70m in 2025 and minus Tk 29.47m in 2024 [1 p.87]. The directors' report gives Tk 616.08 lac 'invested in capital market' [1 p.69]. The Q3 2026 balance sheet shows 'Investment(Share & Securities)' of Tk 130.15m and a fair-value reserve movement of plus Tk 9.32m for January-September 2026 [6 p.1] [6 p.3].

Bonds and subsidiary. The company holds Tk 25.00m of National Investment Bond and Tk 5.52 crore of treasury bonds with Bangladesh Bank as statutory deposit [1 p.86] [1 p.69]. Investment in Takaful Islami Securities Limited rose to Tk 69.97m from Tk 49.97m with a Tk 20.00m injection in 2025, and sundry debtors include 'Loan paid to TISL' of Tk 32.77m (Tk 52.77m in 2024) [1 p.105]. Consolidated EPS was Tk 1.21 and company EPS Tk 1.24; note 51 states that 'Due to increase of Subsudiary company loss ... the earning per share has decreased' [1 p.119] [1 p.88].

Return on average net assets 6.5% in 2025; payout 80.6% of company EPS

Growth. Gross premium grew from Tk 494.85m in 2019 to Tk 809.93m in 2025 [3 p.30] [1 p.28]. It fell 3.5% in 2024 and rose 12.5% in 2025 [36]; the directors' report gives a 'Business growth rate' of 12.49% [1 p.68]. Net premium rose 19.8% in 2025 [36].

Returns. Return on average net assets was 12.1% in 2021, 7.9% in 2022, 7.9% in 2023, 8.0% in 2024 and 6.5% in 2025 [36]. Net assets (company) were Tk 809.20m at end-2025 against Tk 813.72m [1 p.119]; they have stayed between Tk 765.13m (2020) and Tk 820.80m (2023) [5 p.102] [2 p.117].

Tax. The provision for income tax was Tk 25.13m in 2025, 32.3% of the profit carried to the appropriation account [1 p.87] [36]. Note 59 computes it at 37.5% on business income of Tk 19.21m and on interest income, and at 20% on dividends [1 p.122]. Income tax paid during 2025 was Tk 33.39m, including Tk 16.96m for previous years [1 p.121].

Cash conversion. Net cash from operating activities was Tk 101.66m in 2025 against Tk 56.66m in 2024 and minus Tk 28.33m in 2023 [1 p.95] [2 p.93]. Operating cash flow was 1.93 times profit after tax in 2025 and 0.87 times in 2024 [36]. The January-September 2026 operating cash flow was Tk 44.79m against Tk 74.03m [6 p.4].

Payout. Cash dividends were 10% of par for 2019, 2020, 2023, 2024 and 2025, 11% for 2021 and 12% for 2022 [3 p.30] [1 p.28]. The 2025 dividend of Tk 42.59m equals 80.6% of company EPS [36]. The dividend distribution policy states that unclaimed cash dividend 'shall be deposited in a scheduled bank in a separate account' [1 p.63]; unpaid dividend stood at Tk 3.27m [1 p.112].

Tk 787.38m in cash and deposits, Tk 116.71m of Quard-E-Hasana, and an 'except for' opinion with no described basis

Layout. On the printed company balance sheet the amounts under 'Balances of Funds and Accounts' sit one row below their labels: the first figure (Tk 40,209,392) prints against 'Marine (Cargo)' and the row 'Fire' is blank, and the run continues down to the welfare fund [1 p.85]. We map each figure to its line through the note numbers and the notes: premium deposit Tk 75.22m (note 14), loans and overdraft Tk 116.71m (note 15), deferred tax Tk 1.44m (note 16), unpaid dividend Tk 3.27m (note 20) and outstanding claims Tk 21.32m (note 17) [1 p.111] [1 p.112]. The mapped rows add to Tk 1,369,798,397, Tk 1 above the printed total of Tk 1,369,798,396 (rounding in the printed figures) [36].

Borrowing and a conflicting note. Note 15 shows 'Quard- E- Hasana from Bank' of Tk 110,414,000 and 'Cash Withdrawals Facilities' of Tk 6,300,000, both unchanged from 2024 [1 p.111]. Note 66 states: 'There was no credit facility available to the company under any contract availed of as on 31st December, 2025 other than trade credit available in the ordinary course of business' [1 p.124]. The 2025 cash flow shows no movement in the Quard [1 p.95]; the January-September 2026 cash flow shows a decrease of Tk 13.23m [6 p.4]. The Quard was raised by Tk 108.44m in 2023 [3 p.96].

Sundry debtors. Sundry debtors rose to Tk 260.84m from Tk 222.49m, 32.2% of equity [1 p.105] [36]. The largest item is 'Advance against Salary' of Tk 131.12m (Tk 81.83m in 2024); others are 'Re-Ins. Portfolio premium' Tk 39.61m, 'Loan paid to TISL' Tk 32.77m, 'Advance against Office decoration' Tk 26.19m and 'Commission Receivable' Tk 14.17m [1 p.105]. The notes give no ageing for these balances.

Contingent tax claim. Note 65 states: 'The Income Tax Authority has claimed Tk. 45,60,03,136/- for the assessment year 2006-07 ... & 2021-22 in excess of income tax paid for the respective years', that writs and appeals are pending, and that 'no provision for any liability that may arise has been made in the financial statements' [1 p.124]. The claim equals 56.4% of company net assets (derived) [36].

The auditor's opinion. ARTISAN, Chartered Accountants (AMK Lohani, FCA, Senior Partner) signed on 29 April 2026 [1 p.78]. The opinion paragraph reads: '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 the financial position of the company as at 31st 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 Insurance Act 2010, the Securities and Exchange rules 1987 and other applicable laws and regulations.' [1 p.75]. The 'Basis for Opinion' paragraph that follows reads, in full: 'We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Ethical Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) and we have fulfilled our other ethical responsibilities in accordance with the requirements of IESBA Code and the institute of Chartered Accountants of Bangladesh (ICAB) Bye Laws. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.' [1 p.75]. The report contains no emphasis-of-matter or other-matter paragraph [1 p.75] [1 p.78]. We label the opinion as qualified in form ('except for') with no matter described.

Key audit matters. The report lists two key audit matters. 'Premium Income': 'Given the important nature, connections to other items to the financial statements and sensitivity of the item we believe this area possessed high level of risk.' [1 p.75]. 'Estimated liability in respect of outstanding claims whether due or intimated and claim payment': 'This account represents the claim due or intimated from the insured and involves significant management judgment and risk of understatement. In extreme scenario this item may have going concern implications for the company.' [1 p.76]. The response column for the claims matter includes the printed words 'Obtained a sample of survey reports Template of Auditor's Report of General Insurance Company in Bangladesh Risk. Our response to the risk cross checked those against respective ledger balances' [1 p.76]. The section on other information refers to 'the consolidated and the separate financial statements' [1 p.77].

Other printed differences. The corporate-information page gives incorporation as 'December 21, 1999' [1 p.6]; note 1.01 gives a certificate 'dated December-27, 2001' [1 p.97]. The highlights page prints 2025 'Net Profit after Tax' of 410.71 lac, EPS of 1.21 and NAV per share of 18.44 [1 p.28]; the company statements give profit after tax of Tk 52,762,568, EPS of 1.24 and NAV of 19.00, and the consolidated notes give EPS of 1.21 and NAV of 18.44 [1 p.110] [1 p.88] [1 p.119]. The directors' report gives profit before tax of 'Tk. 767.35 lac' [1 p.69]; the highlights give 785.24 lac [1 p.28]. The profit and loss account page carries the DVC 'DVC:2505280575AS731461', the code printed on the 2024 statements, and the other 2025 statement pages carry 'DVC:2605100575AS371939' [1 p.88] [2 p.87] [1 p.86].

An 18-member board under an IDRA order to remove five directors, stayed by the High Court

Board. The 2025 report lists 18 directors: chairman Mrs. Tahmina Afroz, vice chairman Engr. Khondaker Mesbahuddin Ahmed (Rep. of The Eventus), 11 sponsor-shareholder directors including those two, five public-shareholder directors and two independent directors, Mr. Md. Mostofa Kamal FCA and Advocate S.M Kamal Uddin [1 p.10]. Mr. Redwan Kabir is described as the 'son of Md. Humayun Kabir Patwary and Mrs. Shanaz Parvin' [1 p.16]; Mr. Md. Humayun Kabir Patwary and Mrs. Shahanaz Parvin are both sponsor-shareholder directors [1 p.10]. The chief executive officer is Mr. Abul Kalam Azad, the company secretary Mr. Mohammad Shaheen Miah, the chief financial officer Mr. Mohammad Mamunul Islam and the head of internal audit Mr. Shamsuddin Ahmed; the shareholding table also lists five additional managing directors, Mr. Md. Maksudur Rahman, Mr. Md. Sohel Wafez Majumder, Mr. A.K.M. Muntasirul Haque, Mr. Md. Amir Hossain Gazi and Mr. Md. Nur Islam Munshi, all holding 'Nil' shares [1 p.37].

Directors' changes. The attendance page records that 'Tenure of Mr. Md. Azizul Hossain has been expired on 07-07-2025 as Independent Director', that the tenure of Mr. ABM Kaikobad as independent director expired the same day, and that Mr. ABM Kaikobad 'has been elected as Director at the 145th Board Meeting held on 16 August, 2025' [1 p.35]. The directors' report states that with BSEC consent dated 23 April 2026, the 150th board meeting on 29 April 2026 appointed Mr. Md. Mostofa Kamal FCA and Advocate S.M Kamal Uddin as independent directors for three years from that date [1 p.72].

The IDRA order and the writ. The directors' report states that the company filed Writ Petition No. 286 of 2026 and the High Court issued a Rule on 09-03-2026 calling on the respondents to show cause why the order of IDRA 'purportedly under section 50 of the Insurance Act 2010 vide Memo No. 53.03.0000.000.072.27.0008.24.130 dated 08-12-2025 ... relying on the alleged inquiry report dated 27-08-2025 directing the petitioners to reconstitute the Board of Directors upon removing 5 (five) elected Directors' should not be declared without lawful authority [1 p.71] [1 p.72]. Pending hearing of the Rule, the court ordered the parties (the date of this order is not printed separately) 'to maintain status-quo in respect of function of the board of directors of the petitioner company for a period of 3 (three) months' [1 p.72]. The retirement and election of directors at the 26th AGM 'shall remain postponed ... until the final settlement by the High Court' [1 p.72]. The report does not name the five directors. The status-quo order ran for three months; it has passed and its outcome is unknown from the sources read.

Governance certificates. Huda Hossain & Co. certified compliance with the BSEC Corporate Governance Code 'except the matter as reported under condition no. 1(2)(a) on the attached compliance report (“The actual requirements under Condition No. 1(2)(a), as applicable to an Insurance Company, is currently under review of BSEC”)' [1 p.44]. The compliance table itself marks condition 1(2)(a) 'Complied', with the remarks 'As per Insurance Act 2010.' and, against the female independent director proviso, 'Under process' [1 p.45]. Huda Hossain & Co.'s report on IDRA's Insurer's Corporate Governance Guideline, dated 15 March 2026, states that the company complied with the independent-director provisions 6.3, that it has not formed the other committees described in section 13, and that section 12.3 does not apply to a non-life insurer [1 p.55] [1 p.56]. The same firm's BSEC certificate excepts condition 1(2)(a) [1 p.44]. The company profile states that the board consists of 'eighteen members' [1 p.7]. The 'Future Plan' page is signed '(Abul Kalam Azad) Chief Financial Officer' [1 p.40]; page 37 names Mr. Abul Kalam Azad as chief executive officer and Mr. Mohammad Mamunul Islam as chief financial officer [1 p.37].

Committees (AR2025 list). The audit committee has four members and met four times in 2025 [1 p.58]; the nomination and remuneration committee report gives its four members and says it conducted 8 (eight) meetings in 2025 [1 p.60]. The full membership of all five committees as printed is in the exhibit below [1 p.11]. Meeting attendance by committee member is not printed for the audit committee or the other four committees in the 2025 report; the board attendance table covers board meetings [1 p.35] [1 p.58].

Ownership. At 31-Dec-2025 sponsor shareholders (Group-A, 18 holders) owned 43.12% and general public and institutions (Group-B) 56.88% [1 p.108]. The directors' and sponsors' table, which also includes the public-shareholder directors, sums to 2,57,42,454 shares, 60.45% [1 p.36]. The largest single listed holding is Mr. Jahirul Islam's 35,97,035 shares (8.45%) [1 p.36], and 'Shareholders who are holding 10% or above share' is 'Nil' [1 p.37]. DSE recorded that director Mr. Md. Humayun Kabir Patwary completed buying 250,265 shares, posted 13-Jul-2026 [32].

Related parties and pay. Note 57 lists premium from five director-related parties in 2025, with claims paid and outstanding 'Nill': Libas Textiles Ltd. Tk 6,961,451, Hashem Food Ltd Tk 707,835, Sajeeb Corporation Tk 599,341, Kattali Textile Tk 560,178 and Sears Accessories Ltd. Tk 5,986 [1 p.120]; the total is Tk 8,834,791 (derived). Note 56 states that 'the company has not any key management personnel compensation' in the listed categories other than short-term benefits 'As shown in note no- 23' [1 p.120]. Directors' fees were Tk 2,186,373 in 2025 [1 p.88] [1 p.115].

Auditor rotation and other records. ARTISAN audited 2025 after re-appointment at the 25th AGM; for 2026 the board recommended FAMES & R, Chartered Accountants, at Tk 2,50,000, to comply with BSEC rotation rules [1 p.72]. DSE approved the change of name to 'Takaful Islami Insurance PLC' with effect from 13-Apr-2025 [32]. Note 60 states that no Workers' Profit Participation Fund provision was made, citing a legal opinion and Ministry of Finance letters [1 p.122].

January-September 2026: gross premium -18.1%, commission -83.0%, profit after tax +66.3%

Premium. Gross premium for January-September 2026 was Tk 440.22m against Tk 537.30m, and net premium Tk 257.59m against Tk 343.88m [6 p.5]. That is a fall of 18.1% in gross premium [36]. The interim income statement labels net premium as 'Gross Premium less Re-Insurance & Adj of Unexpired Risk' and shows the unexpired-risk reserve as a separate expenditure line [6 p.2].

Commission and expenses. The 'Commission' line was Tk 11.28m for January-September 2026 against Tk 66.52m, and the July-September 2026 column shows '-' against Tk 23.13m [6 p.2]. Commission was 2.6% of gross premium against 12.4% [36]. Management expenses were Tk 245.92m against Tk 258.15m (-4.7%), 55.9% of gross premium against 48.0% [6 p.2] [36]. The chairman's statement on the suspension of individual agent licences from 1 January 2026 is quoted in the underwriting section [1 p.22]; the interim accounts give no reason for the commission figure. The Business Standard reported on 24 December 2025 that IDRA had scrapped commission payments in the non-life sector [33]; the filings do not link that report to the company's figures.

Profit. Profit before tax was Tk 126.20m against Tk 74.60m and net profit after tax Tk 80.12m against Tk 48.17m, up 66.3% [6 p.2] [6 p.3] [36]. Net claims were Tk 3.90m against Tk 12.84m, with July-September 2026 net claims of minus Tk 9.43m [6 p.2]. Income from investment and financial services was Tk 21.77m against Tk 27.05m [6 p.2]. EPS was Tk 0.60 for January-March, Tk 0.78 for April-June and Tk 0.50 for July-September 2026 [32].

Balance sheet at 30-Sep-2026. Shareholders' equity was Tk 856.04m and NAV per share Tk 20.10 [6 p.1]. Outstanding claims fell to Tk 8.82m from Tk 21.32m, and the reserve for unexpired risk to Tk 160.44m from Tk 230.22m [6 p.1]. Cash and cash equivalents were Tk 768.13m [6 p.1]. The DSE Q2 announcement gives NAV per share of 'Tk. 19.65 as on December 31, 2025' [32]; the Q1 and Q3 announcements and the audited accounts give Tk 19.00 for that date [32] [1 p.119].

Peers on one definition: Takaful Islami's 83.5% combined ratio is the 6th-highest of 25 published non-life notes (4th of 17 without modified-opinion peers)

Peer set and basis. We compare Takaful Islami with Islami Insurance Bangladesh (also a Shariah-based general insurer), Nitol Insurance and Pioneer Insurance for calendar 2025, each from its own annual report, on the company basis, with one combined-ratio definition. Each peer is a non-life insurer with a published AnalystBro note. Reinsurance commission includes profit commission where printed (Nitol). Islami's revenue line is labelled 'Expenses of management (with stamp used)' and its commission 'Agency commission' [7 p.110]; Nitol's are 'Expenses of Management' and 'Agent Commission' [8 p.189]; Pioneer's 'Expenses of Management' and 'Agency Commission' [9 p.181]; Takaful Islami's 'Expenses of management' and 'Agent Commission' [1 p.89].

Audit opinions. Pioneer's auditor (ARTISAN) wrote 'In our opinion, the accompanying financial statements present fairly, in all material respects' [9 p.172]. 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]. Islami's auditor, FAMES & R, gave an unmodified opinion with four emphasis-of-matter paragraphs (per its published AnalystBro note). Takaful Islami's opinion is the 'except for' wording quoted in the balance-sheet section [1 p.75]; we footnote its inputs with an asterisk, as for the 8 peers with modified opinions in the 25-insurer exhibit.

Enlarged set. The 24 other non-life insurers with published AnalystBro notes are compared on the same definition and the company basis, each from its own 2025 revenue account; the inputs reuse the checked peer sets of the Meghna and United notes, and Islami, Nitol, Pioneer, Mercantile Islami and Global were re-opened and match [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [36]. Management expenses include insurance stamps where a peer prints them on a separate revenue-account line, and reinsurance commission includes profit commission where printed [36]. An asterisk marks the 8 peers whose auditors gave a modified opinion (qualified or adverse), plus Takaful Islami itself. Ranked from highest to lowest, Takaful Islami's 83.5% is number 6 of 25; the higher ratios are Mercantile Islami 110.7%, Northern Islami* 101.0%, Sonar Bangla* 94.2%, Global 93.5%, Phoenix 90.7% [36]. Without the modified-opinion peers it is number 4 of 17 [36]. The median of the other 24 is 73.5% [36].

Four-company detail. Among Takaful Islami, Islami, Nitol and Pioneer, in ascending order of combined ratio: Islami 67.7%, Pioneer 68.1%, Nitol 72.7%, Takaful Islami 83.5% [36]. Claims ratios were 3.5% at Takaful Islami and 3.9% at Islami, the two Shariah-based insurers, and 21.6% at Nitol and 19.4% at Pioneer [36]. Management expenses plus agent commission were 64.9% of gross premium at Takaful Islami, 52.0% at Islami, 40.6% at Nitol and 31.2% at Pioneer [36].

Scale and returns. By gross premium Takaful Islami (Tk 809.93m) is larger than Islami (Tk 688.22m) and Nitol (Tk 705.15m) and smaller than Pioneer (Tk 3,876.23m) [36]. Return on year-end equity as printed was 6.5% at Takaful Islami, 12.9% at Islami, 6.2% at Nitol and 9.7% at Pioneer [36]. Pioneer prints its own 'Combined Ratio' of 68.07% for 2025 [9 p.11]; our common-definition figure is 68.1% [36].

Multiples as facts. At Tk 45.6 on 29-Oct-2026 Takaful Islami traded at 36.8 times 2025 company EPS of Tk 1.24 and 2.4 times end-2025 company NAV per share of Tk 19.00 [36]. Islami was at 23.0 times and 2.96 times, Nitol at 30.3 times and 1.87 times, and Pioneer at 14.3 times and 1.39 times [36].

Share price Tk 45.6 on 29-Oct-2026; 52-week closing range Tk 29.1 to Tk 57.9

Price facts. The shares closed at Tk 45.6 on 29-Oct-2026, against Tk 34.5 on 29-Oct-2025, a change of 32.2% [31] [36]. The 52-week range of daily closes, using 236 Sunday-to-Thursday bars from 30-Oct-2025 to 29-Oct-2026, ran from Tk 29.1 on 2026-03-08 to Tk 57.9 on 2026-09-10, with no ties [31]. The bar feed also carries two Saturday-dated bars, 23-May-2026 (Tk 34.6) and 17-Oct-2026 (Tk 46.5), which are excluded from the range. At Tk 45.6, the 42,586,977 shares have a market value of Tk 1,942.0m (derived) [36]. The company reports a closing price of Tk 33.30 on 31-12-2025 [1 p.6].

Record dates and trading. DSE moved the shares to the spot market from 19-05-2026 to 20-05-2026 with the record date on 21-05-2026, and trading resumed on 23-05-2026 [32]. DSE also posted 'Price Limit Open' notices on the days after each dividend declaration, 28-May-2025 and 30-Apr-2026 [32].

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 on DSE on 11-Oct-2026) are in the text above. Inferred ranges are built from every precedent found and are labelled; Sunday-to-Thursday dates inside a range are the DSE business days.

Accounts timing. The FY2025 accounts were considered at the board meeting of 29-Apr-2026, notified on DSE on 21-Apr-2026 [32]. The FY2024 accounts were considered on 27-May-2025 and signed on 28-May-2025 [32] [2 p.93]. Earlier board precedents are 12-04-2022 for FY2021 [5 p.76], 30-04-2023 for FY2022 [4 p.121] and 28/05/2024 for FY2023 [3 p.121]. The FY2022 Form AA page prints both the board approval 'on 30-04-2023' and 'Dated: 13 April, 2023' beside the signatures [4 p.121]; the FY2023 statements carry the signing date 13 June, 2024 [3 p.96]. No board date for the FY2026 accounts has been notified.

Passed events, outcome unknown. The 26th AGM was called for 20 June 2026, a date the notice itself prints as a Saturday [1 p.5]; DSE posted no AGM result in the archive read, and recorded the disbursement of the 2025 cash dividend on 2-Jul-2026 [32]. The High Court's three-month status-quo order, made pending hearing of the Rule issued on 09-03-2026, has passed (passed), outcome unknown [1 p.72]. IDRA's suspension of individual agent licences took effect on 1 January 2026 (passed) [1 p.22]. Bangladesh's LDC graduation date is 24-Nov-2029 [34] [35].

Risk map: audit wording, the IDRA board order, the tax claim, expenses, fire losses and the Quard

Expenses. Expenses of management were Tk 420.13m in the revenue accounts in 2025; net claims were Tk 20.00m [1 p.89].

Claims reserves. Outstanding claims were Tk 21.32m at end-2025, 2.6% of company net assets (derived) [1 p.89] [36]; the auditor's key audit matter on this balance refers to a 'risk of understatement' [1 p.76]. At 30-Sep-2026 the balance was Tk 8.82m [6 p.1].

Governance. The IDRA order and the writ concern the composition of the board; the directors' report states that director elections are postponed until the High Court's final settlement [1 p.72]. The filings do not state any effect on the accounts.

• FY2026 annual report (board meeting inferred 12-Apr-2027 to 30-May-2027; no date notified): auditor's report, note 15, note 65, note 66, revenue accounts.
• DSE credit-rating notice (inferred 12-Jan-2027 to 13-Jan-2027) after the 11-Jan-2027 validity date.
• Q1 2027 accounts (inferred 29-Apr-2027 to 27-May-2027): commission and management-expense lines.
• Any DSE notice on Writ Petition No. 286 of 2026 (no date notified).

Seven-year history, company basis

Gross premium, net premium and the 2019 underwriting profit are from the highlights pages [3 p.30] [2 p.29] [1 p.28]; net premium agrees with the revenue-account 'Premium less Re-insurances' line in each year read. Claims, commission, expenses and underwriting profit for 2020-2025 come from the consolidated business revenue accounts, which combine the classes of the company [5 p.76] [3 p.90] [2 p.87] [1 p.89]. Profit after tax is the 'Net profit during the year after Tax & Deferred Tax' line of note 13.06, and net assets the company line of note 52 [5 p.97] [3 p.109] [2 p.108] [1 p.110] [5 p.102] [3 p.116] [2 p.117] [1 p.119]. The 2022 EPS of Tk 1.51 is the restated figure printed in the 2023 report [3 p.89]. The highlights' EPS row (Tk 1.21 for 2025) matches the consolidated EPS note, not the company profit and loss account [1 p.28] [1 p.119].

FAQ

How much did Takaful Islami Insurance earn in 2025?

On the company basis, profit after tax and deferred tax was Tk 52.76m against Tk 64.98m, and EPS Tk 1.24 against Tk 1.53. Underwriting profit was Tk 57.07m and investment and other income Tk 48.13m. Consolidated EPS, which includes the brokerage subsidiary, was Tk 1.21.

What did the auditor say about the 2025 accounts?

ARTISAN wrote that 'except for the effect of the matters described in the basis for Opinion section of our report' the statements present fairly. The basis for opinion section that follows carries standard wording and describes no matter. The key audit matters were premium income and the estimated liability for outstanding claims.

What is Takaful Islami's combined ratio?

83.5% in 2025 and 86.5% in 2024, measured as net claims incurred plus expenses of management plus agent commission less commission on reinsurance, over net premium. Across 2020-2025 the highest was 86.5% in 2024 and the lowest 68.6% in 2020.

What is the dispute with IDRA?

IDRA ordered the company, by a memo dated 08-12-2025, to reconstitute its board by removing five elected directors. The company filed Writ Petition No. 286 of 2026; the High Court issued a Rule on 09-03-2026 and, pending hearing, ordered the parties to maintain status quo on the board's functions for three months. Director elections at the 26th AGM were postponed until the case is settled.

How has Takaful Islami done in 2026 so far?

For January-September 2026 gross premium was Tk 440.22m against Tk 537.30m, commission Tk 11.28m against Tk 66.52m, and net profit after tax Tk 80.12m against Tk 48.17m. EPS was Tk 1.88 against Tk 1.13 and NAV per share Tk 20.10 at 30-Sep-2026.

What dividend did Takaful Islami pay for 2025?

A 10% cash dividend, Tk 1.00 a share and Tk 42.59m in total, recommended by the board on 29-Apr-2026 with a record date of 21-May-2026. DSE recorded its disbursement on 2-Jul-2026. It equals 80.6% of 2025 company EPS.

Sources

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4. Takaful Islami Insurance Limited Annual Report 2022 (Form AA and board-approval line p.121) · link · accessed 2026-11-02
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26. Pragati Insurance PLC audited financial statements 2025 (peer; consolidated revenue account p.10) · link · accessed 2026-11-02
27. Reliance Insurance PLC Annual Report 2025 (peer; consolidated revenue account p.364-365) · link · accessed 2026-11-02
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36. AnalystBro history and ratio model for TAKAFULINS (model.xlsx, the workbook below) · link · accessed 2026-11-02