United Insurance Company Limited

United Insurance Company Limited incorporated on 7 May 1985 as a public limited company under the companies act 1994 to carry out all kinds of general insurance business other than life under the Insurance Act 1938 and Rules 1958. The company obtained certificate of commencement of business on 12 October 1985 and was registered with the Department of Insurance on 15 October 1985. It commenced business on 19 October of the same year. The authorised capital of the company at the time of its establishment was Tk 100 million divided into 1 million ordinary shares of Tk 100 each. Its paid up capital is Tk 60 million. Institutional sponsors of the company are Duncan Brothers (Bangladesh) Limited, Octavious Steel and Co. of Bangladesh Ltd., Macalms Bangladesh Trust, Shaw Wallace Bangladesh Limited and National Brokers Limited. The company was enlisted with the Dhaka Stock Exchange Limited on 9 April 1990

The company underwrites risks involved in trade and properties and thus provides their security through insurance and re-insurance services. As per Re-Insurance Treaty, it re-insures risks undertaken with the sadharan bima corporation. Main areas of business of the company include fire insurance, marine cargo and hull insurance, motor insurance and miscellaneous insurance.

In 2000, the total premium incomes of the company amounted to Tk 131.21 million and net premium incomes were Tk 78.03 million. During the year, it paid a net re-insurance premium of Tk 53.18 million to Sadharan Bima Corporation. Net claims paid amounted to Tk 14.6 million. Underwriting profits were about Tk 15.6 million. In addition, the company earned investment and other incomes of Tk 14.81 million. Profit before tax of the company was Tk 26.52 million and the company paid a dividend of 23% to the shareholders in 2000. The company maintains a special reserve fund for exceptional losses and accretion has continuously been made, the cumulative amount of which was Tk 86.34 million in 2000. Investments of the company in government savings instruments, shares of companies, fixed deposits with banks and shares of its wholly owned subsidiary company, Surma Valley Tea Co. Ltd totaled Tk 141.66 million in 2000. That year the value of assets of the company was Tk 304.13 million.

In addition to the head office at Dhaka, the company has two zonal offices, one each at Dhaka and Chittagong, and a total of 13 branches at some selected divisional/district towns. As the company restructured its organisational pattern by closing up non-performing or losing branches, the number of branches of the company reduced from 23 in 1998 to 13 in 2000. The board of directors of the company has 12 members including the chairman. The managing director is the chief executive and he is assisted by a management team of 5 executive officers and some legal advisers and qualified auditors. [S M Mahfuzur Rahman]