Introduction

Karnaphuli Insurance Company Limited was established on 23rd November 1986 as a public limited company under the Companies Act of 1913. It started operations just two days later, with the approval to conduct general insurance operations. The company's founding was backed by a distinguished group of businessmen, industrialists, and journalists.

History and Development

Since its inception, Karnaphuli Insurance Company Limited has positioned itself as a leading first-generation Non-life Insurance Company in Bangladesh. With a solid capital base, the company has adhered to ethical business practices, excellent corporate governance, and superior underwriting skills.

Financial Overview

The company commenced operations with a paid-up capital of Tk. 3.00 crore and authorized capital of Tk. 30.00 crore. Over the years, the paid-up capital increased to Tk. 44.87 crore through public offerings and stock dividends. On 3rd October 2010, the face value of shares was revised from Tk. 100 to Tk. 10.00, and market lot size adjusted from 20 to 200 shares. As of the end of 2022, the company's shares are listed under the A category on the Dhaka Stock Exchange.

Board of Directors and Management

The Board consists of 13 directors as of 31st December 2023, including three independent directors. Mr. Nizam Uddin Ahmed serves as the Chairman, a prominent figure with extensive leadership in various top-tier institutions.

Credit Rating

Karnaphuli Insurance maintains a stable outlook with credit ratings of AA+ and ST-2 for long and short term respectively, reflecting its efficient premium collection, satisfactory dividend policy, and speedy claim settlements.

Network and Operations

The company operates through 30 branches across Bangladesh, with the head office located in Dhaka. All types of business are underwritten directly by the branches, which are closely monitored and guided by the head office.

Business Strategy

Karnaphuli Insurance is dedicated to managing key strategic concerns with initiatives that ensure high-quality, consistent growth and financial stability. Its strategies include leadership transitions, cluster management initiatives, and extensive reinsurance coverage.

Strategy Pillar

• Prudent Risk Management: We carefully select corporate business that promises stable returns without compromising on risk exposure, ensuring long-term viability and trust.
• Sustainable Pricing: Our pricing strategy is designed to balance risk and reward responsibly, avoiding the pitfalls of high-risk premiums. We aim for moderate, sustainable profits that cover operational expenses and yield a reasonable profit, akin to a middle-income family budget.
• Stakeholder Engagement: We are committed to building lasting relationships with our clients, offering fair commissions and fostering trust. This approach has enabled us to maintain an annual employee turnover rate of less than 1%, reflecting our strong internal culture and employee satisfaction.
• Community Investment: A significant portion of our income is allocated to corporate social responsibility initiatives, supported by our non-profit arm, which holds 5.7% of our shares. This commitment to social responsibility is integral to our corporate identity and mission.
• Dynamic Workforce: We continually invest in our workforce by recruiting dynamic new talent to work alongside our experienced employees. This strategy ensures fresh perspectives are integrated with seasoned expertise, driving innovation and adaptability.

Our strategic approach is designed not just to navigate the present but to pave a stable path into the future. By aligning our operations with these core principles, we ensure Karnaphuli Insurance not only thrives as a business but also contributes positively to the communities we serve and represents a model of sustainable, ethical insurance practice.

CORPORATE INFORMATION
Name of the Company		Karnaphuli Insurance Co. Ltd.
Date of Incorporation of the Company		23rd November, 1986
Registration Number		C-17002 of 1986-1987
Date of Registration		November 25, 1986
Obtained Certificate of Commencement of Business		November 23, 1986
Nature of Business		Non-Life Insurance Business
Authorized Capital		600.00 Million
Paid up  Capital		44.87 Million
Publication of Prospectus		December 18, 1994
Subscription Opened		December 29, 1994
Subscription Closed		January 07, 1995
Amount of public subscription		Tk. 30.00 Million
Amount of total subscription received		Tk. 300.00 Million
Listed with Dhaka Stock Exchange		March 20, 1995
First trading of shares on Dhaka Stock Exchange		March 20, 1995
First A.G.M. of public shareholders		August 09, 1995
Dematerialization of shares		April 16, 2006
Rights share  issued		April 21, 2010
Change in the denomination of Face Value (BDT 10/-) and Market Lot(From 20 to 100)		October 03, 2010
Tax Payers Identification Number(ETIN)		121758563184
VAT Registration Number		002028401-0202
BIN  Registration Number		002028401-0202
Number of Branches		31
Number of Share Holders		8,816
Number of Employees		314
Purchase of commercial plot at Motijheel, Dhaka  1000		April 30, 1998

 

Legal  Partners
External Auditor		A. Wahab & Co. Chartered Accountants, Hotel Purbani Annex-2, 4th floor 1, Dilkusha C/A, Dhaka-1000.
Corporate Governance Compliance Auditor		Hussain Farhad & Co. Chartered Accountants, House #15, Road #12, Block #F, Niketon, Gulshan, Dhaka-1212.
Credit Rating Company		Alpha Credit Rating Limited
Tax Adviser		ADN Associates, 176, Bijoy Nagar, Dhaka.
Banker		Dhaka Bank PLC, AB Bank PLC, NCC Bank PLC, Bank Asia PLC, Brac Bank PLC & Islami Bank Bangladesh PLC.