Ratio Analysis of Life Insurance Company of Bangladesh

Assignment
On
Ratio Analysis of Life Insurance Company of Bangladesh
[FIN 410: Risk Management & Insurance]
Section # 2
SUBMITTED TO
QuaziSagotaSamina
Assistant Professor
Department of Business Administration
EAST WEST UNIVERSITY
SUBMITTED BY
Name ID
Md. Jakaria khondaker 2010-3-13-047
S M Sharia Majumder 2011-1-10-388
Asif Ibne Shohel 2011-2-10-143
Md. Rakibul Haque Ratul 2011-2-10-172
Towsif Noor Jamee 2011-2-10-171

Letter of Transmittal
9 December 2014
QuaziSagotaSamina
Assistant Professor
Department Of Business Administration

East West University
Subject: Submission of Assignment
Dear Sir,
With the due respect it is our pleasure to present the assignment on “Ratio Analysis of Life
Insurance Company of Bangladesh”. While preparing the report we have tried our level best
to focus closely on the topic and try to collect most complete and updated information
available. We believe that it will provide a clear idea about Ratio Analysis of Life Insurance
Company of Bangladesh
To prepare this assignment, we have given best effort to accumulate needed information.
We will be available to answer any question for clarification. Thank you for your sincere
support.
On behalf of the group
Md. Jakaria khondaker

Acknowledgement
It is our concession to thank QuaziSagotaSamina, Assistant Professor Department of Business

Administration, East West University for rendering us her expertise knowledge and giving the
opportunity of practical experiences through this term paper.
Practical Knowledge is fundamental for the application of theoretical intelligence. Being this
in mind the course teacher assigned to prepare this assignment to the students of the course
“Ratio Analysis of Life Insurance Company of Bangladesh”, FIN 410. We cordially thank the
honorable teacher to provide us the opportunity to apply class room learning practice. This
assignment bridges the gap between them.
We also convey our deep gratitude to those people who have helped us to collect this
information and supported us.
Executive summary
Delta life Insurance Company, Sun life Insurance Company, Fareast Islami life Insurance
Company are three popular insurance company of Bangladesh. We mention the three
insurance company’s profile as vision, mission and their activity in insurance industries. In
this assignment we try to analyze their liquidity, underwriting ratio, profitability ratio,
leverage ratio, and market ratio, control their claim and expenses, how efficiently they use
their resources, what source of financing they are giving more importance, how they increase
their profits and about their market value and book value of price. Try to look capital
structure. Observe through the debt to equity ratio. Try to look market status of those three
insurance companies.
In our assignment we have done individual company ratio analysis first to know different
ratio to measure the performances of individual companies.
On the last part of the assignment we made comparison among Delta life Insurance
Company, Sun life Insurance Company and Fareast Islami life Insurance Company. After
that we try to find out which Insurance company is better in insurance industries.
TABLE OF CONTENTS
CHAPTER 1, ................................................................................................................................. 5
1.1 Introduction: ................................................................................................................. 5
1.2 Objective of the study ................................................................................................... 5
CHAPTER 2, COMPANY OVERVIEW ................................................................................ 5-7
2.1 Delta life Insurance Company Ltd. ................................................................................... 5
2.2 Sun life Insurance Company Ltd....................................................................................... 6
2.3 Fareast Islami life Insurance Company Ltd .................................................................... 7
CHAPTER 3 ............................................................................................................................. 8-40
3.1Liquidity Ratio ..................................................................................................................... 8
3.2 Underwriting Ratio ........................................................................................................... 11
3.3 Profitability Ratio ............................................................................................................. 20
3.4 Leverage Ratio .................................................................................................................. 32
3.5 Market Ratio ..................................................................................................................... 35
CHAPTER 4 ................................................................................................................................ 41
Conclusion .................................................................................................................................. 41
REFERENCES ............................................................................................................................ 42
Chapter 1
1.1 Introduction
In every type of business there have some elements which could help anyone to analysis the
business. For better analysis to find about companies overall performance there are some
ratio analysis on companies. Insurance company is playing a major role in our economy.
There are two types of insurance company.These are General Insurance companies and Life
Insurance companies. In this term paper we have chosen life Insurance companies to analyze
eleven ratio on the basis of five categories such as Liquidity ratio, Underwriting ratio,
Profitability ratio, Leverage ratio and Market ratio. We have done all those ratio analysis with
three insurance companies. By which we can easily see that what insurance company is in the
best position.
1.2 Objective of the study

The objectives of the study are as follows:
 To find out the company’s performances.
 To know the profitability or loss of the companies.
 To find out the more efficient company.
 To find out the more risky company.
 To find out the overall acuity of an insurance company.
Chapter 2
Company overview
2.1 Delta Insurance Ltd.
Delta Insurance company is one of the leading insurance company of the country, since its
establishment in December, 1986 the company has successfully been in operation after the
Government of Bangladesh allowed the private sector to operate in the insurance sector in
1984 to carry on the business of insurance in the Private Sector. Although relatively a new
entrant in Insurance business the success of the company lies with the expertise knowledge
and experience of the associates and personalities. Over the few years of operation this
company has succeeded in building confidence in clientele groups. It has extended its
network in different places of the country.
The entire portfolio of the company is protected fully under the umbrella of re-insurance
arrangement with SadharanBima Corporation (Government owned).
Under the existing system retention capacity of each insurance company is fixed at an annual
meeting held at SadharanBima Corporation in December every year. The risk is shared by
SadharanBima, which also cedes to internationally sound Re-Insurance companies.
Therefore, any amount of insurance is fully insured and protected through treaty and Re-
Insurance arrangement with the insurer.
2.2 Sun life Insurance Company Ltd.
Mission:
1. To provide unequal service, protect our policy holder’s interest and contribute for
economic stabilization of the company.
2. To maintain stakeholders interest with fair and transparent operation
Vision:
To be a leading life insurance Company and to be a company with due solemnity and
corporate social responsibility to the society uphold by taking life risks of the policyholders.
2.3 Fareast Islami Life Insurance Company Limited.
Fareast Islami Life Insurance’s emerged as the 1st full-fledged Islami Life Insurance
Company in the country in 2000 and been able to bring confidence among the common
people of the country. Fareast Islami Life Insurance’s portfolio is fully protected under the
Re-insurance arrangements made with Sadharan Bima Corporation – a state-owned
organization and few other renowned Re-Insurers operating abroad. Company is enlisted with
almost all the leading private/public sector banks operating in the country for acceptance of
our policies and cover notes. Delta life Insurance has direct business communication with
internationally reputed Re-insurance companies. It has also good business relationship with
international insurance broker market.
Their Company has earned a total premium income of Tk. 707.46 crore, the highest among
Bangladeshi Life Insurance Companies in the year 2012. The Life fund increased to taka
2,080.42 crore from taka 1,648.65 crore. The growth of life fund in the year of 2012 is
26.19% which is satisfactory and the financial position of the company is very sound since
the assets increased to taka 629.85 crore.
Last year they had taken a holistic approach in doing business with focus on quality customer
service and business growth with desun lifeization of operational activities. With that in view,
they have already opened 1012 Offices including 10 Divisional offices, 38 full-fledged
Service Centers and 112 Zonal Offices in different places all over the country.
Their goal is to be the top insurer in the Non-life Insurance sector of the country. To achieve
the goal they aim at-
 Maximizing Insurance Coverage at a Minimum Cost

 Responding quickly to new opportunities
 Establishing a long term relationship with our clients and business partners built on
professional service and trust
 Maintaining strong relationships with a wide variety of partners, like- re-insurers, and
insurance brokers and so on.
 Assessing and managing our business risks carefully
Vision:
We envision being the leading insurer by maintaining the highest standards of service in all
areas of our work in order to uphold our status as one of the market leaders in the insurance
industry of Bangladesh.
Mission:
• Providing world class service with supreme security to our clients

• Increasing awareness about insurance in the country
• Enhancing public confidence in the insurance industry
• Introducing modern insurance products comparable with international standards
• Emerge as an innovative insurer by providing complete risk management solutions to the
clients
Chapter 3
Ratio Analysis
3.1 Liquidity Ratio

The current ratio is a popular financial ratio used to test a company's liquidity (also
referred to as its current or working capital position) by deriving the proportion of current
assets available to cover current liabilities. In theory, the higher the current ratio, the
better it is.
𝐶𝑢𝑟𝑟𝑒𝑛𝑡𝐴𝑠𝑠𝑒𝑡
a) Current Ratio= 𝐶𝑢𝑟𝑟𝑒𝑛𝑡𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
Table 1
Year Delta life Sun life Fareast Islami life
2012 1.052624983 6.397516614 1.080069478
2011 1.058835152 16.94674923 1.089861131
2010 1.072432019 14.22663551 1.093553472
2009 1 15.16228956 1.08596659
2008 0.913493468 19.36520947 1.149534678

Current ratio of Delta life
1.1
1.05
0.95
0.9
0.85
0.8
2012 2011 2010 2009 2008
By using Table 1 and this graph, we can figure out that Delta Insurance Company Ltd. is
performing good in year 2010 compare to other years because it is highest value of this
company. They had a short of liquidity till 2012 because their current ratio is less than 2.
Current Ratio of Sun life

25
20
15
10
0
2012 2011 2010 2009 2008
By using Table 1 and this graph, we can figure out that of sun life Insurance Ltd. is not
performing good because they had too much liquidity till 2012 and their current ratio is more
than 2 which means that their profitability is low.
Current Ratio of Fareast islami life
1.16
1.14
1.12
1.1
1.08
1.06
1.04
2012 2011 2010 2009 2008
By using Table 1 and this graph, we can figure out that of Fareast islami life Insurance Ltd. is
performing good in the year 2012 because after 2008 they had short of liquidity till 2012 and
their current ratio is less than 2 which means that their profitability is high.
Comparative analysis:
Comparative analysis
25
20
15
10
0
2012 2011 2010 2009 2008
Delta life Sun life Fareast islami life

By using Table 1 and this graph, we can figure out that of Fareast Islami life Insurance Ltd.
is performing good compare to other company.Because of the latest period’s (2013) Current
ratio of Fareast Islami life is more than the others.
Under writing Ratio:
a) Loss ratio is the total losses paid by an insurance company in the form of
claims. The losses are added to adjustment expenses and then divided by total
earned premiums. In theory, the higher the loss ratio, the lower efficient it is.
𝑁𝑒𝑡𝑐𝑙𝑎𝑖𝑚𝑃𝑎𝑖𝑑
Loss Ratio= 𝑛𝑒𝑡𝑃𝑟𝑒𝑚𝑖𝑢𝑚
Table 2

2012 0.55887788 0.243779274 2.389263682
2011 0.458267654 0.124623759 0.190485967
2010 0.457188379 0.107383502 0.348914031
2009 0.465373835 0.073588776 0.265462564
2008 0.634664024 0.090583632 0.288959391
Loss ratio of Delta life

0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2012 2011 2010 2009 2008
By using Table 2 and this graph, we can figure out that of Delta life Insurance Ltd. is
performing good in year 2009-2011 compare to other years because it is lowest value of this
company.
Loss Ratio of Sun life
0.3
0.25
0.2
0.15
0.1
0.05
0
2012 2011 2010 2009 2008
By using Table 2 and this graph, we can figure out that of Sunlife Insurance Ltd. is
performing good in year 2009 compare to other years because it is lowest value of this
company.
Loss Ratio of Fareast islami life

3
2.5
1.5
0.5
0
2012 2011 2010 2009 2008
is performing good in year 20101 compare to other years because it is lowest value of this
company.
3
2.5
1.5
0.5
0
2012 2011 2010 2009 2008
From Table 2 and this graph, we can figure out that of Delta life Insurance Ltd. is performing
efficient compare to other company.Because of the latest period’s (2013) Loss ratio of Delta
life is less than the others.
b) An expense ratio is determined through an annual calculation, where a fund's

operating expenses are divided by the average dollar value of its assets under
management. In theory, the lower the expense ratio, the better it is.
𝑈𝑛𝑑𝑒𝑟𝑤𝑟𝑖𝑡𝑖𝑛𝑔𝐸𝑥𝑝𝑒𝑛𝑠𝑒
Expense Ratio = 𝑁𝑒𝑡𝑃𝑟𝑒𝑚𝑖𝑢𝑚
Underwriting Expense=Commission paid to agent + any managerial expense.

Table 3

2012 0.278 0.242608314 0.388
2011 0.343 0.336663465 0.439
2010 0.338 0.412156891 0.369
2009 0.321 0.397723513 0.345
2008 0.323 0.549329781 0.397
0.4
Expense ratio of Delta life
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2012 2011 2010 2009 2008
company.
0.6
Expense Ratio of Sun life
0.5
0.4
0.3
0.2
0.1
0
2012 2011 2010 2009 2008
By using Table 3 and this graph, we can figure out that of sun life Insurance Ltd. is
company.
Expense Ratio of Fareast Islami life

0.5
0.45
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2012 2011 2010 2009 2008
By using Table 3 and this graph, we can figure out that of Fareast Islami Life Insurance Ltd.
is performing good in year 2009 compare to other years because it is lowest value of this
company.
0.6
0.5
0.4
0.3
0.2
0.1
0
2012 2011 2010 2009 2008

c) The combined ratio is comprised of the claims ratio and the expense ratio. The
claims ratio is claims owed as a percentage of revenue earned from premiums. The
expense ratio is operating costs as a percentage of revenue earned from premiums. In
theory, the lower the current ratio, the better it is.
Combined ratio= Loss Ratio+ Expenses Ratio
Table 4

2012 0.83687788 0.486387588 2.777263682
2011 0.801267654 0.461287224 0.629485967
2010 0.795188379 0.519540393 0.717914031
2009 0.786373835 0.471312289 0.610462564
2008 0.957664024 0.639913413 0.685959391
Combined ratio of Delta life

1.2
0.8
0.6
0.4
0.2
0
2012 2011 2010 2009 2008
company.
Combined ratio of Sun life
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2012 2011 2010 2009 2008
By using Table 4 and this graph, we can figure out that of Sun life Insurance Ltd. is
company.
Combined ratio of Fareast Islami life

3
2.5
1.5
0.5
0
2012 2011 2010 2009 2008
is performing good in year 2008-2011 compare to other years because it is lowest value of
this company.
3
2.5
1.5
0.5
0
2012 2011 2010 2009 2008
Delta life Sun life Fareast Islami life
performing good compare to other company.Because of the latest period’s (2013) combined
ratio of Delta life is less than the others.
3.2 Profitability Ratio:
a) Return on Revenue: Revenue is the amount of money that a company receives

as a result of performing business activities during a specific period, including
discounts and deductions for returned merchandise. An increasing ROR implies
less expense for higher net income. In theory, the higher the current ratio, the
better it is.
Net Operating Income

Return on Revenue= Total Revenue
Table 5
year Delta life Sun life Fareast Islami life

2012 0.164366596 0.342360594 -0.404616735
2011 0.198754914 0.228969252 0.457594329
2010 0.205243337 0.368531285 0.49736467
2009 0.213818563 0.286657166 0.548302839
2008 0.042137102 0.205835586 0.470582115
Return on Revenue of Delta life

0.25
0.2
0.15
0.1
0.05
0
2012 2011 2010 2009 2008
company.
Return on Revenue of Sun life

0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2012 2011 2010 2009 2008
company.
Return on Revenue of Fareast Islami life

0.6
0.4
0.2
0
2012 2011 2010 2009 2008
-0.2
-0.4
-0.6
is performing good in year 2009 compare to other years because it is highest value of this
company.
0.6
0.4
0.2
0
2012 2011 2010 2009 2008
-0.2
-0.4
-0.6
is performing good compare to other company.Because of the latest period’s (2013) Return
on revenue ratio of Fareast Islami life is more than the others.
b) The Return on Asset (ROA) ratio illustrates how well management is

employing the company's total assets to make a profit. In theory, the higher the
current ratio, the better it is.
Net Income
Return on Asset= Total Asset
Table 6

2012 0.02292561 0.104978103 0.13709077
2011 0.030709157 0.098634221 21.69717878
2010 0.034918453 0.13177369 0.187430246
2009 0.040742277 0.129006928 0.221362215
2008 0.00914851 0.092538212 0.226610008
Return on Asset of Delta life
0.05
0.04
0.03
0.02
0.01
0
2012 2011 2010 2009 2008
company.
Return on Asset of Sun life

0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
2012 2011 2010 2009 2008
company.
Return on Asset of Fareast Islami life
25
20
15
10
0
2012 2011 2010 2009 2008
company.
25
20
15
10
0
2012 2011 2010 2009 2008

is performing good compare to other company.Because of the period’s (2011) Return on
Asset ratio of Fareast Islami life is more than the others.
c) Return on Equity showsprofitability by revealing how much profit a company

generates with the money shareholders have invested. The Return on Asset (ROA)
ratio illustrates how well management is employing the company's total assets to
make a profit. In theory, the higher the current ratio, the better it is.
Net Income
Return on Equity=Total Shareholder′ s equity
Table 7

1.849238438
2012 0.458566789 0.124427437
0.552661702 0.104819446 263.1495025
2011
0.517004321 0.141736442 2.19088603
2010
0.801244944 0.138116114 2.79634182
2009
-0.096606623 0.09757699 1.742044495
2008
Return on Equity of Delta life
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
-0.1 2012 2011 2010 2009 2008
-0.2
company.
Return on Equity of Sun life

0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
2012 2011 2010 2009 2008
company.
Return on Equity of Fareast Islami life

3
2.5
1.5
0.5
0
2012 2011 2010 2009 2008
company.
3
2.5
1.5
0.5
0
2012 2011 2010 2009 2008
-0.5

is performing good compare to other company.Because of the period’s (2009) Return on
Equity ratio of Fareast Islami life is more than the others.
d) Investment Yield is the income return on an investment. It is therefore a measure of

an investor's opinion about the prospects and risks attached to that investment. In
theory, the lower the Investment Yield, the better it is.
Investment Amount
Investment Yield= Investment Income
Table 8

2012 1.087600962 0.581266399 1.423388641
2011 0.952293057 0.336979592 2.64929146
2010 0.649024236 0.437405647 3.675076666
2009 1.10417812 0.360889729 4.985346033
2008 2.536587277 0.671344297 6.57773386
Investment Yield of Delta life

3
2.5
1.5
0.5
0
2012 2011 2010 2009 2008
performing good in year 2010 compare to other years because it is lower value of this
company.
Investment Yield of Sun life

0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2012 2011 2010 2009 2008
performing good in year 2010 compare to other years because it is lower value of this
company.
Investment Yield of Fareast Islami life

7
0
2012 2011 2010 2009 2008
is performing good in year 2012 compare to other years because it is lower value of this
company.
7
0
2012 2011 2010 2009 2008
is performing good compare to other company.Because of the period’s (2012) Investment
Yield ratio of Fareast Islami life is less than the others.
3.3 Leverage Ratio:
a) The debt-equity ratio is leverage ratio that compares a company’s total

liabilities to shareholder’s equity.In theory, the higher the debt equity ratio, the
more risky it is.
Total liabilities
Debt equity Ratio: Total Shareholder′ s equity
Table 9

2012 19.00238147 0.185237987 12.48916274
2011 16.99664185 0.062592219 11.12835391
2010 13.80604897 0.077680622 10.68911035
2009 19.66617978 0.088203129 11.63257243
2008 -11.55982066 0.087478304 6.687552802
Debt-Equity ratio of Delta life

25
20
15
10
0
2012 2011 2010 2009 2008
-5
-10
-15
By using Table 9 and this graph, we can figure out that of Delta life InsuranceLtd.’s risk is
more in year 2009 compare to other years because it is highest value of this company.
Debt-Equity ratio of Sun life

0.2
0.18
0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
2012 2011 2010 2009 2008
By using Table 9 and this graph, we can figure out that of Sun lifeInsurance Ltd.’s risk is
more in year 2012 compare to other years because it is highest value of this company.
Debt-Equity ratio of Fareast Islami life

14
12
10
0
2012 2011 2010 2009 2008
By using Table 9 and this graph, we can figure out that of Fareast Islami life Insurance Ltd.’s
risk is more in year 2012 compare to other years because it is highest value of this company.
25
20
15
10
0
2012 2011 2010 2009 2008
-5
-10
-15
performing in risky compare to other company.Because of the period’s (2012) debt equity
ratio of Delta life is more than the others.
3.4 Market Ratio:
a) The price earnings ratio is the best known of the investment valuation
indicators. The price-earnings ratio reflects the investors’ assessments of a
company’s future earnings.In theory, the higher the price earnings ratio, the
better it is.
Market Price per share
Price Earnings Ratio= Earning Per share
Table 10

2012 22.94 11.84666667 16.58333333
2011 20.51162791 11.20714286 17.41293532
2010 21.85446009 14.595 14.61805556
2009 34.90677966 11.30337079 18.4577631
2008 18.06866953 10.16753247 18.37292401
Price Earnings ratio of Delta life

40
35
30
25
20
15
10
5
0
2012 2011 2010 2009 2008
company.
Price Earnings ratio of Sun life
16
14
12
10
0
2012 2011 2010 2009 2008
company.
Price Earnings ratio of Fareast Islami life

20
18
16
14
12
10
8
6
4
2
0
2012 2011 2010 2009 2008
company.
40
35
30
25
20
15
10
5
0
2012 2011 2010 2009 2008
By Using Table 10 and this graph, we can figure out that of Sun life Insurance Ltd. is
performing good compare to other company.Because of the latest period’s (2013) Price
earnings ratioof Sun life is more than the others.
b) The market to book financial ratio measures the market value of a company
relative to its book or accounting value. If the ratio is greater than 1, the
market status is higher.
Market Price per Share

Market value to Book value Ratio= Book Value Per Share
Table 11

2012 4.097315436 0.38087208 2.600396036
2011 3.984067017 0.403002835 2.375992561
2010 3.950732117 0.426364269 4.319334669
2009 5.727261236 0.474634349 6.481271268
2008 -4.098068906 0.642063414 5.821308656
Market value to Book value Ratio of Delta life
8
0
2012 2011 2010 2009 2008
-2
-4
-6
By using Table 11 and this graph, we can figure out that of Delta life Insurance Ltd. has
goodstatus in everyyear but more in 2009 because it is highest value of this company.
Market value to Book value Ratio of Sun life

0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2012 2011 2010 2009 2008
By using Table 11 and this graph, we can figure out that of Sun life Insurance Ltd. has good
status in every year but more in 2011 because it is highest value of this company.
Market value to Book value Ratio of Fareast Islami life
7
0
2012 2011 2010 2009 2008
By using Table 11 and this graph, we can figure out that of Delta life Insurance Ltd. has good
status in every year but more in 2011 because it is highest value of this company.
8
0
2012 2011 2010 2009 2008
-2
-4
-6

is performing good compare to other company.Because of the latest period’s (2013) Current
ratio of Pioneer is more than the others.
Chapter 4
Conclusion
From our overall analysis over 11 ratios we have find that there is a perfect balance on this
ratios. But the best balance is in Fareast Islami life Insurance with low risk higher return with
better efficiency and performance. In case of Market ratio, following three companies have
better reputation in the market as the investors are continuing their support on these firms.
Reference:
1. http://www.dsebd.org/
2. http://www.Delta life-insurance.net/
3. http://www.cicl-bd.com/
4. http://Fareast Islami lifegroupbd.com/Fareast Islami life%20Insurance.htm

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Assignment

Ratio Analysis of Life Insurance Company of Bangladesh

[FIN 410: Risk Management & Insurance]

Department of Business Administration

EAST WEST UNIVERSITY

Md. Jakaria khondaker 2010-3-13-047

S M Sharia Majumder 2011-1-10-388

Asif Ibne Shohel 2011-2-10-143

Md. Rakibul Haque Ratul 2011-2-10-172

Towsif Noor Jamee 2011-2-10-171

Department Of Business Administration

Subject: Submission of Assignment

On behalf of the group

Md. Jakaria khondaker

It is our concession to thank QuaziSagotaSamina, Assistant Professor Department of Business

1.2 Objective of the study

2.1 Delta Insurance Ltd.

2.3 Fareast Islami Life Insurance Company Limited.

 Maximizing Insurance Coverage at a Minimum Cost

• Providing world class service with supreme security to our clients

3.1 Liquidity Ratio

Year Delta life Sun life Fareast Islami life

2012 1.052624983 6.397516614 1.080069478

2011 1.058835152 16.94674923 1.089861131

2010 1.072432019 14.22663551 1.093553472

2009 1 15.16228956 1.08596659

2008 0.913493468 19.36520947 1.149534678

Current Ratio of Sun life

Delta life Sun life Fareast islami life

Under writing Ratio:

Year Delta life Sun life Fareast Islami life

Loss ratio of Delta life

Loss Ratio of Fareast islami life

Delta life Sun life Fareast islami life

b) An expense ratio is determined through an annual calculation, where a fund's

Underwriting Expense=Commission paid to agent + any managerial expense.

Year Delta life Sun life Fareast Islami life

Expense Ratio of Fareast Islami life

Delta life Sun life Fareast islami life

Combined ratio= Loss Ratio+ Expenses Ratio

Year Delta life Sun life Fareast Islami life

2011 0.801267654 0.461287224 0.629485967

2010 0.795188379 0.519540393 0.717914031

2009 0.786373835 0.471312289 0.610462564

2008 0.957664024 0.639913413 0.685959391

Combined ratio of Delta life

Combined ratio of Fareast Islami life

Delta life Sun life Fareast Islami life

a) Return on Revenue: Revenue is the amount of money that a company receives

Net Operating Income

year Delta life Sun life Fareast Islami life

Return on Revenue of Delta life

Return on Revenue of Sun life

Return on Revenue of Fareast Islami life

Delta life Sun life Fareast Islami life

b) The Return on Asset (ROA) ratio illustrates how well management is

Year Delta life Sun life Fareast Islami life

Return on Asset of Sun life

Delta life Sun life Fareast Islami life

c) Return on Equity showsprofitability by revealing how much profit a company

Year Delta life Sun life Fareast Islami life

Return on Equity of Sun life

Return on Equity of Fareast Islami life