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Long term strategy is the best policy for insurance leaders

Article - May 25, 2012
Green Delta has just celebrated its 26th year anniversary, a testament to its philosophy of always looking for long-term growth
GREEN DELTA INSURANCE ACHIEVE INTERNATIONAL QUALITY CROWN AWARD 2011

Green Delta Insurance Company Limited (GDIC) is one of the leading private, non-life insurance companies in Bangladesh, providing an array of insurance such as fire, burglary, marine and health.

GDIC was incorporated in late 1985 as a public limited company with a paid up capital of only BDT 30 million ($366,500). After the privatization of the insurance sector, Green Delta was the fifth company to be established, and it has gained a reputation as one of the most respected companies in the business.

Nasir A. Choudhury, Managing Director of GDIC, has played an important role in the growth of the company thanks to his 54 years of experience in the insurance sector. Mr. Choudhury attended two different insurance courses for a total 14 months in the U.K. and Germany, and upon completing them was posted in Pakistan Insurance Corporation’s Regional Office in Chittagong, which became the Bangladesh Insurance Corporation after independence.

Success for GDIC began from day one. It was the first insurance company to be launched purely by professionals and technocrats, and Mr. Choudhury and his colleagues’ first-hand experience working abroad got the company off to a flying start. Today the company has paid up capital of BDT 510.3 million.

As a whole, 2011 was a challenging and to some extent turbulent year for the economy, capital markets and the financial services industry. The year began with ongoing market declines and extensive government intervention in the financial system and broad-based consumer anxiety that ended with a liquidity crisis and& increased interest rates.

Despite the aforementioned gloomy situation, the insurance sector in the country has moved ahead. The top line continued to grow in 2011. “We are pleased with our progress and optimistic that we can accelerate the momentum in our business. We can proudly confirm that with the right strategic guidelines and timely executions of the plans, Green Delta Insurance Company has successfully overcome the hurdles during the year 2011,” says Mr. Choudhury.

In 2011, GDIC was once again the highest premium collector, and despite the worldwide recession GDIC is still producing the numbers. It reported 17.5 percent increase in gross premium to BDT 2,351.47 million, an investment income of BDT 131.80 million; profit after tax is now BDT 134.01 million, an 11.9% growth in net premium, fixed asset growth 58.2% now standing at 212.94 million and an underwriting profit growth by 24.5% standing at BDT 124.17 million.

Moreover, during the year 2010 and 2011 GDIC made significant investment on the following that are expected to result in substantial investment return and cost reduction in near future:

  • Investment in Green Delta Aims tower – a joint venture 17 storied landmark building in Mohakhali, Dhaka has been constructed entirely from own cash flow. The corporate head office of GDIC has been relocated to the new premises recently. This will help GDIC in reducing the rental expenses by huge margin.
     
  • Investment in merchant banking subsidiary – Green Delta LR Financial Services Ltd., a direct subsidiary of Green Delta Insurance Co. Ltd., engaged in fully-fledged merchant banking business. The entity has already generated a positive bottom line in its very first year of operation. In the coming days the merchant bank is expected to generate more revenue and uphold the image both locally and globally.
     
  • Investment in fixed assets – GDIC has recently purchased two commercial floor spaces in Dhaka city. In one premises out of the two, a branch has been opened and the other one under construction progress.
     
  • GDIC has invested funds as a co-sponsor to Delta Brac Housing Finance Corporation Ltd., the country’s leading housing finance organization; United Hospital Ltd.; Progressive Life Insurance Company Ltd, BD Venture Ltd. – a venture company, SwissPro (BD) Asset Management Company and FinExcel Ltd. – an advisory services firm. It has also started a subsidiary company, Green Delta LR Holdings Ltd., which includes Green Delta Securities Ltd., having membership of both Dhaka and Chittagong Stock Exchanges.

 

Green Delta’s success can be attributed to its multiple strategies concerned with long-term success. Creating value for its customers, investing in and developing the talent of its’ employees, committing to ethical conduct, and assuming social responsibility are just a few of the ways GDIC is focused on maintaining a strong financial stance, both for now and for the future.

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