Photo : Collected
Zenith Islami Life Insurance reduced management expenses and increased life fund and investment in 2023.
From January to December 2023, the insurer’s life fund grew by 102 per cent, investment increased by 15 per cent, and management expenses decreased by 14 per cent, according to the annual report.
In this period, the company collected premiums of Tk 30.03 crore at a cost of Tk 16.93 crore. That is, it spent 56.38 per cent of the premiums on management.
Earlier in 2022, Zenith’s premium collection was Tk 30.34 crore at a cost of Tk 21.47 crore. This means the company spent 70.76 per cent of the premium on management that year.
Accordingly, Zenith’s management cost decreased by 14.38 per cent in 2023 year on year. However, Tk 2.55 crore more was spent than the approved expenditure limit.
Of the premiums collected by the company in 2023, the first-year premium is Tk 14.61 crore, the second-year premium Tk 5.92 crore, and the third-year and above premium Tk 9.5 crore.
Of this, the second-year renewal collection rate of the first-year premium income increased by 6.79 per cent.
The company's life fund had a positive impact due to lower management costs. After the settlement of insurance claims from the collected premium and investment income, new funds of Tk 9.47 crore were added to the life fund of the company in 2023.
In 2022, the closing fund of the company was Tk 9.27 crore. As a result, the total life fund of the company at the end of 2023 stood at Tk 18.74 crore, registering a 102 per cent increase.
The total investment of Zenith in the last accounting year stood at Tk 32.54 crore, up from Tk 28.21 crore in the previous year. That is, in 2023, the investment of the insurer increased by Tk 4.33 crore or 15.35 per cent.
Out of its total funds, Zenith has 36.29 per cent investment in the public sector, amounting to Tk 6.8 crore.
Zenith Islami Life Insurance Chief Executive Officer SM Nuruzzaman said, "We are working by giving utmost importance to customers’ interests. We have no pending insurance claims.”
He said management expenses were also being reduced. “We hope our management expenses will go below the limit this year.”
Messenger/Fameema
