Contradiction in Insurance Sector as Struggling Firm Wins Excellence Award

The Bangladesh insurance industry has been met with a wave of scepticism following the announcement of the IDRA Insurance Excellence Award 2025. At the heart of the controversy is Eastland Insurance PLC, a firm that has secured a prestigious accolade from the Insurance Development and Regulatory Authority (IDRA) despite a three-year downward spiral across every significant financial metric.

Systematic Decline Across All Indicators

An analysis of Eastland Insurance’s publicly available financial disclosures reveals a troubling trend. Far from demonstrating the “extraordinary performance” cited by the regulator, the company’s core business operations appear to be shrinking. Between 2022 and 2024, the firm’s total premium income plummeted from 118.62 crore BDT to 94.07 crore BDT—a substantial contraction of approximately 20.70 per cent.

Profitability and investment strategies have faced similar setbacks. Net profit after tax witnessed a sharp decline of nearly 35 per cent over the same period, falling to 8.95 crore BDT. Perhaps most concerning for policyholders is the reduction in the Reserve Fund, a critical buffer for long-term stability, which dipped by over 8 crore BDT in just 24 months.

Financial Performance Summary: Eastland Insurance (2022–2024)

The Excellence Award Paradox

Despite these lacklustre figures, IDRA recently issued a notice, signed by Executive Director (Non-Life) Monira Begum, placing Eastland Insurance in the fifth position for “Excellence” in the Non-Life category. The regulator claims the decision was based on an evaluation of “overall governance” and various performance indices. However, market observers argue that awarding a company with falling revenue, dwindling reserves, and a 20 per cent drop in share price risks undermining public confidence in the awards themselves.

Market and Stakeholder Reaction

Industry experts have highlighted that the precipitous drop in claims settled—from 37.90 crore BDT in 2022 to 18.79 crore BDT in 2024—could indicate a loss of consumer trust or a tightening of payouts, neither of which aligns with the spirit of an “Excellence” award. The stock market has already reflected this sentiment, with the company’s Net Asset Value (NAV) per share also stagnating.

The IDRA’s stated goal for these awards is to “establish a positive image” of the sector and “restore public trust.” Yet, the inclusion of Eastland Insurance alongside high-performers like Pragati Insurance and MetLife has raised questions regarding the transparency of the selection criteria.

Efforts to reach both the IDRA spokesperson and Eastland Insurance CEO Mohammad Selim for clarification were unsuccessful, as neither party responded to multiple enquiries.