Welcome to Our Presentation

Insurance company, Its Development &

Financial performance analysis: A study on
Green Delta insurance company Limited
Name

Student ID

Md Shahriar-Al-Arman

440

M.A. Naim

444

Md. Saddam Hossain

Khan

463

Objectives

To Identify the practical condition of Green Delta

Insurance Company Limited as well the insurance
sector of Bangladesh

To Know about the Products and services offered by

Insurance Companies like GDIC

To demonstrate the financial performance analysis of

the company by using different measures.

Suggestions Regarding change or more value creation

Green Delta At A Glance

Category

Non-life Insurance Company

Incorporation
Net worth
Credit Rating
Number of
Branches
Equity
Participation

December 14, 1985 as a public limited company

Subsidiaries

BDT 807 million

AAA and ST1
39 branches
Delta BRAC Housing Ltd., Progressive Life
Insurance Co Ltd, United Hospital Ltd. FinExcel
Ltd. and BD Venture Ltd
Green Delta Capital Ltd
Green Delta Securities Ltd.
Professional Advancement Bangladesh Limited
GD Assist Limited

GDIC Products and Services

vs Our suggestions
Nibedita- Comprehensive
insurance policy for women
Products and Service

Fire insurance
Marine insurance
Motor insurance:
Green delta health insurance
Personal accident insurance
Burglary insurance
All risk insurance

Our Suggestions
Group Household Insurance
Cellular Phone Contingency
Insurance
Weather Index Based Insurance

Year to year growth analysis

Net Premium (amount in millions)
1,4.00

1,2.54

1,2.22

1,2.13

1,2.00

Net claims
400
350

1,0.00

8.62

346.61

372.6

301.49

300

8.00

250

6.00

200

201.96
122.43

150

4.00

100

2.00

50

0.00
2015

2014

1,3.17
2013

0
2012

2011

The net premium income has increased from

previous year but the highest number shows
in 2013. The overall cost has increased
because of which the net premium also
decrease in 2015 though the gross premium is
much higher.

2015

2014

2013

2012

2011

The above figure in the table shows that the

net claim is in reducing state from 2013 but in
2013 the amount significantly rises than 2011
& 2012. The main reason behind it is the
number of accident rise in 2013.

Year to year growth analysis

Underewriting profit

Investment Income

350
306.18

305.99

300

288.16

250

298.04

250

200

200

150

150

124.17

212.48

220.74

204.06

135.45

131.8

2012

2011

100

100
50

50
0

0
2015

2014

2013

2012

2011

the underwriting profit in increasing over

time but the percentage of change is very
low in the year of 2015 than 2014. As we
already identify that overall cost has
increased in this period..

2015

2014

2013

investment income in 2015 has decreased

from the previous year though many of the
investment amounts has increased but a
significant portion of interest income has
decreased because of the maturity of the
debenture.

Year to year growth analysis

Profit After Tax
250

230.3

239.25

229.03

Shareholders Equity
6,0.00

237.67

4,8.53

5,0.00
200

4,4.79
3,8.58

4,0.00
134

150

3,0.00

100

2,0.00

50

1,0.00
0.00

0
2015

2014

2013

2012

2011

one of the main sources of income is the

investment income so the reduction of it
affects overall income of the company.

2,5.10

5,6.92
2015

2014

2013

2012

2011

The shareholders equity is in a rising trend

for the year 2011-2015 which is a very good
indicator for the firm as well as for the
investors. As the market value of the
company increases the value of shareholders
equity also increases.

Year to year growth analysis

Total Assets

Total Liability
2,0.00

1,9.68

1,9.54

1,9.50

8,0.00

7,6.60
6,5.99

7,0.00

1,8.83

1,9.00

9,0.00

6,3.05
5,5.82

6,0.00

1,8.50

5,0.00

1,8.00

4,0.00

1,7.46

1,7.23

1,7.50

3,0.00

1,7.00

2,0.00

1,6.50

1,0.00

1,6.00

0.00
2015

2014

4,4.64

2013

2012

2011

The total liability of the company also

increases in 2015 than 2014 and it has
increased more than 200 million. The main
reason is GDIC invest in commercial spaces
in Dhaka and .

2015

2014

2013

2012

2011

total asset value is increasing over year

2011-2015. In 2015 the valus is significantly
rises because they purchase commercial
space in both Chittagong and Dhaka.

Year to year growth analysis

Earning per share
3.69

4
3 2.85

3.73

3.26

2.6

2
1
0
2015

2014

2013

2012

value has been decreased

from 2014 to 2015 and the
previous year as well. As the
net income is lower in 2015
compared to 2015 so the
EPS will inevitably lower
than the previous year.

2011

P/E ratio
50

46.45

40
30
20 18.82

22.73

25.73

19.99

10
0
2015

2014

2013

2012

2011

P/E has significantly

decreased from 2011 which
was 46.45 in 2015 it is only
18.82. It means the price of
the share goes down over
years compared to its
income.

Year to year growth analysis

Book value per share
75
71.23

70 70.54
66.16

65

60.49

60
55
2015

2014

2013

2012

60.88

the book value per share is

measured for the common
share holders for ensuring
safety and as the value
goes up so we can say that
it assures more safety.

2011

Solvency margin
4000
Available
solvency
margin

3500
3000
2500
2000

Required
solvency
margin

1500
1000
500
0
2015

2014

2013

2012

2011

very high solvency margin

than the required amount.

Year to year growth analysis

30%

Dividend paid

25%

20%

Cash Dividend

15%
Stock Dividend
10%

5%

0%
2015

2014

2013

2012

2011

the firm provides cash dividend in 2015 and from 2012-2014 it provides both
cash and stock dividend and in 2011 it provides only stock dividend

Comparison with the DSE index

GDIL Trade volume
35000

DSE trade volume

160,000,000

32382

149,695,464

140,000,000

30000

120,000,000
25000

23697

104,352,182
97,047,649
100,000,000

20000

80,000,000
14400

15000

60,000,000

11142
10000

8446

70,609,784
50,145,954

40,000,000
20,000,000

5000

0
0
27-04-2016 31-12-2015 30-6-2015 29-12-2014 30-6-2014

Comment: the following two graphs show the overall trade volume of DSE and GDIL for the
particular date taken randomly.

Correlation analysis between

market index and GDIL price

DSE
INDE
X
GDIL
PRICE

27-042016
4238.95

29-022016
4511.9
7

31-122015
4629.6
4

30-82015
4790.9
8

30-062015
4583.1
1

01-032015
4739.6
5

29-1214
4814.1
6

31-814
4549.5
2

30-614
4480.5
2

03-0314
4697.3
0

45

49.9

53.7

51.8

52.8

71.2

73.7

79.6

80.9

77.2

Correlation analysis between market

index and GDIL price:

DSEX

GDIL

0.330802

GDIL share price is positively co-related with overall Index but the correlation is
not strong. As we use only 10 days value so the result is not significant here. For
analyzing properly we need to use more data set. We cannot conclude by using
this small number of data set.

Comparison With the sector

movement with GDIL

March,
2016

February,
2016

January,
2016

December Novembe
, 2015
r, 2015

Sector Turnover
Non-Life (amount in million)
Non-life sector performance
return
GDIL close price

14

22.5

52.5

26.1

12.7

-1.3%

-3.4%

4.0%

4.6%

-3.6%

45

49.9

52.7

53.7

47.2

Correlation between sector turnover and GDIL

close price:

Sector Turnover

Sector
Turnover
1

GDIL close price

0.718556

sector turnover and price movement is positively correlated. That means if the
price of the share goes down then the sector turnover will go down and if the
price of the share goes up then the sector turnover will go up and this
relationship is shown by calculation of the correlation which shows 0.718556
positive correlation.

FINDINGS

The reporting system of Green Delta is quiet well

The net profit is little bit low in 2015

The investment increase in 2015

Overall cost increases due to market condition

The shares are trading less than book value

DSEX index and the share price change of Green Delta are
positively correlated

Sector turnover and price movement is positively

correlated

Thanks for Your Kind Attention...

ANY Questions????