It is my great pleasure to present to you my internship report on financial performance analysis of "SadharanBima Corporation". I have tried my best to complete this report properly as per the guidelines provided by you and concerned organization. I will be obliged to answer any queries that may arise during the evaluation of this report.
I further declare that I have not submitted this report anywhere for the award of any degree, diploma or certificate. SadharanBima Corporation” in partial fulfillment of the degree of Bachelor of Business Administration (BBA) major in Finance from Daffodil International University Bangladesh conducted by Md. During the preparation of this report I received sincere cooperation from a number of persons whose names it is not possible to mention in this report, but I will remember them with my sincere appreciation and gratitude.
First of all, I am very thankful to Almighty God for giving blessings, courage and ability to prepare this report. I am also greatly indebted to him for his scientific and constructive suggestion, which has greatly helped in the preparation of this report. SadharanBima Corporation (SBC)”. Sincere thanks to all the wonderful peoples of Daffodil International University, Bangladesh.
This report consists of all my practical experience on corporate activities, theoretical knowledge, research under the strict supervision of my internal support and also my official supervisor.
Objectives of the Report
Scope of the report
Methodology of the Report
Limitations of the Report
Chapter- Two
Profile of SadharanBima Corporation
Profile of Sadharan Bima Corporation (SBC)
With the emergence of Bangladesh as an autonomous country, the insurance sector was nationalized, in addition to managing an account and other mechanical segment. When the nationalization of the insurance sector was introduced, five governments claimed that protection companies had been set up, including one controlling organisation. Due to difficult encounters during operations, the protection industry was again consolidated in 1973 by passing the Insurance Organization Act VI of 1973 and establishing two organizations: one for common protection under the name Sadharan Bima Organization and one for life insurance under the title Jibon. Bima organization.
Under the ideals of Protection Companies Act VI of 1973, the Sadharan Bima Organization was favored as the sole safety net provider for the non-life insurance protection trade in Bangladesh. This imposing business model pleased him until 1984, when the government revised the Protection Companies Act, 1973 with Act no. L and LI of 1984 which allowed the regulation of protection companies within. Thereafter, as per Government decision, it was agreed that the Sadharan Bima Corporation would take over 100 per cent guarantee for public property business and distribute fifty per cent of all insurance business in respect of any public property to private non-life insurance companies on an equal basis. The introduction of the above amendments to the Insurance Companies Act 1973 together with the privatization program and the government's disinvestment policy had a negative impact on the company's direct premium income. In 2016, gross premium income and total business volume of SBC reached Taka 872.87 crore in 2016 and Taka 861.45 crore in 2015.
SadharanBima Corporation at a glance
Vision, Missions, Goals and Strategic Objectives
Goals
- Objectives SBC
- Corporate Information
- District wise Branches of SBC
- Product and services Product
- Services
- Risk minimization services
- Human resources development for insurance industry
- Corporate Philosophy
- for Policyholders
- for Employees
- for Shareholders
- for Community
- Corporate Social Responsibility
In 1985, after the establishment of a private insurance sector, the government authorized SBC to provide 100 percent insurance services to insurance companies in our country. SBC's role as a reinsurer has provided extensive support to the private insurance sector in Bangladesh. In view of the large net worth and confinement capacity, SBC has approved both treaty and elective activities of the private insurance companies. In appreciation of reinsurance, the Insurance Corporation Act 1990 stipulates that 50% of a company's reinsurance business must be included in its reinsurance business. sadharanBima Corporation.
And for others, 50% may be reinsured with SadharanBima Corporation or another insurer in Bangladesh or abroad. SadharanBima Corporation plays direct insurance along with reinsurance from private insurance companies. In Bangladesh, SBC is a major general insurance company that did direct business amounting to BDT 886 million in 2005. SBC's main portfolio includes sea freight, fire brigade, engineering and aviation. SBC also obtains reinsurance business from the foreign market through its intermediaries and also direct action. The impeccable financial backing and rich background earned over the years in the field of insurance, reinsurance and financial services (including investments, risk enhancement services etc.) .
SBC has a wide range of fixed deposit funds at various commercial banks in our country. Insurance and only state insurance sector in Bangladesh SBCs. continued its assistance to the insurance activities in our country with protection. SadharanBima Corporation would make consistent efforts to provide better customer service to the insurance industry in our country in the areas of insurance, reinsurance and uncertainty management. Sadharanbima Corporation has the liberty to seek necessary assistance and guidance from the foreign reinsurer, adhering to the risk minimization approach.
It may be cited that the license of the survey firms is issued by the office of the Chief Controller of Insurance, Government of the People's Republic of Bangladesh. For the development of human resource management in Bangladesh, SBC has provided a professional training program for their officers' employees and staffs both in the country and abroad. SadharanbimaCorporation also provides professional training for employees and officers of the private insurance companies operating in Bangladesh.
Settle its employees with hopeful allowances and satisfying innovation. Promote an environment for the development of their skills and personal knowledge of their business service providers by offering training within and outside Bangladesh. The company is committed to ensuring the conduct of business activities in accordance with management in accordance with standard honesty, expert, legal standards and reputed corporate governance. Sadharanbima Corporation will fulfill the needs of its customers and provide good quality services to meet their customer needs.
Chapter-Three
Organizational Structure
Directors
Md. Farid Uddin Member (NBR)
General Manager
Chapter- Four
Data Analysis
Information research consists of several phases, such as setting up an information set, planning the information for preparation, applying models, recognizing discoveries, and creating reports. The main reason for analyzing information is to discover the important insights that can help make choices.
Financial Performance of SBC
Gross Premium & Net Premium
Gross Premium Segment Wise (2016)
Net Premium &Underwriting Result
Figure: Graphic presentation of gross premium and underwriting results Interpretation: There is an upward trend in net premium and difference between net.
Net Profit & Investment Income
Ratio Analysis of SadharanBima Corporation
Liquidity ratio
CURRENT RATIO
Analysis: The Quick ratio means how quickly the company meets its current liabilities with its most liquid assets. If the company has a quick ratio, it means that the company is able to pay off its current liabilities quickly.
Debt Ratio
QUICK RATIO
Analysis: The amount of the debt position means that how much money from other's people we use to generate profit. It tells you the percentage of total assets financed by creditors, liabilities, debt. The debt to total assets ratio is calculated by dividing a corporation's total liabilities by its total assets.
Analysis: The debt to total assets ratio indicates the percentage of the company's total assets that are financed with money from others. Here we can see that SBC has more debt and incurred more interest and risk between 2012 and 2016.
DEBT EQUITY RATIO
DEBT TO TOTAL ASSET RATIO
TOTAL ASSET TURNOVER
CURRENT ASSET TURNOVER
And the average turnover is 1.32 times which suggests that SBC is more able to generate profit through its operating assets. Analysis: Fixed Asset Turnover means how the company can generate its sales or net profit by using its fixed assets. And the average turnover is 1.70 times which suggests that SBC is more able to generate profit through its fixed assets.
Profitability ratio
FIXED ASSET TURNOVER
NET PROFIT MARGIN
Analysis: The net profit margin of SBC is gradually increasing but in the year of 2015 the percentage has decreased compared to the other years. Analysis: Return on asset means how much the company generates profit from its assets. Analysis: Return on equity indicates the company's ability to generate profit using shareholders' equity.
ROA (%)
ROE (%)
Chapter- Five
Findings & Recommendations
Findings
Recommendations
Bibliography
