Central Insurance Company Limited (CICL) incorporated as a public limited company on 12 November 1987 under the companies act 1913. It was registered with the Department of Insurance on 30 November 1987 and commenced business on 10 December 1987. The company was established to carry out general insurance business within the framework of the Insurance Act 1938. It underwrites risks involved in trade and properties and thus provides security through insurance and reinsurance services. The authorised capital of the company is Tk 100 million and its paid up capital in 2001 was Tk 60 million, which is divided into 600,000 ordinary shares of Tk 100 each. The company went public in 1994 and is listed in both Dhaka and Chittagong stock exchanges.

Business performance of the company has been consistently satisfactory despite stiff competition in the limited insurance market of the country. Total turnover of the company stood at Tk 46.07 million as on 30 June 2000 compared to Tk 45.45 million as on the same day of the previous year. The insurance or risk underwriting of the company covered the areas of fire, marine, motor and others, in addition to trade and properties. Gross premium received by the company from its policies was Tk 141.30 million on 31 December 1997 but dropped to Tk 135.94 million in 1998 and to Tk 105.68 million in 1999. It paid gross claims of Tk 20.73 million in 1999 compared to Tk 24.79 million in 1998. Despite a decline in the company's business performance in terms of net premium received and claims paid, the underwriting profit has increased each year and rose to Tk 32.44 million on 31 December 1999. Its net profit after tax increased up to 1997, declined in 1998, and then increased again in 1999, when it stood at Tk 12.03 million. Like all other insurance companies, the CICL also has the underwriting profits as its main source of operating income.

Total assets and liabilities of the company were Tk 588.99 million in 1994 and Tk 346.73 million in 1999. The company paid dividends at the rate of 12%, 18%, 20%, 15% and 15% in the business years from 1995 to 1999.

CICL has its head office at dhaka. It has a total of 33 branches (31 December 1999) throughout the country. Eleven of them are located at different parts of Dhaka city. Its management team includes eight executives of different levels and is headed by a managing director. Members of the board of directors of the company belong to two categories. Some of the directors retire each year but are eligible to be re-elected. [S M Mahfuzur Rahman]