Green Delta Secures Excellence Award Despite Financial Decline

In a move that has raised eyebrows across the financial sector, Green Delta Insurance PLC has been selected to receive the "IDRA Insurance Excellence Award 2025," despite a sustained period of deteriorating financial performance. The Insurance Development and Regulatory Authority (IDRA) is set to confer the honour on 29 January, citing the company’s "outstanding performance" in corporate governance—a claim that stands in stark contrast to the firm’s recent balance sheets.

An analysis of Green Delta’s annual reports reveals a concerning downward trend across nearly every critical financial metric, from premium collection to solvency margins. Critics are now questioning the transparency and criteria used by the regulator to determine "excellence" in an industry currently struggling to restore public trust.

A Portfolio in Retraction

The most immediate red flag is the decline in Gross Premium Income. In 2024, the company collected Tk 410.80 crore, representing a sharp 9.61% drop from the Tk 454.50 crore recorded in 2023. This contraction suggests a weakening market position or a loss of client confidence.

Furthermore, the company’s underwriting profit—the core measure of an insurer's efficiency—has plummeted. While Green Delta managed an underwriting profit of 31.30% of its total premium in 2021, that figure fell to just 23.59% by 2024. Curiously, this drop in profitability occurred even as the company's claim-to-loss ratio appeared to improve, leading to significant questions regarding the consistency of its income and expenditure reporting.

Key Financial Indicators (2023–2024)

The following table highlights the fiscal erosion experienced by Green Delta Insurance over the last twelve months:

*Comparative drop over a three-year window.

Erosion of Solvency and Reserves

Perhaps most alarming for policyholders is the steep decline in the Solvency Margin. The company’s available solvency (AS) fell from Tk 206.50 crore in 2023 to Tk 149.20 crore in 2024—a massive 27.75% decrease. This margin represents the company’s "safety net" to meet unforeseen liabilities; its rapid depletion indicates a heightened risk profile. Similarly, total investments and reserves both saw double-digit percentage declines within a single year.

The IDRA Paradox

Despite these "risky" financial indicators, IDRA ranked Green Delta fourth among non-life insurers in their latest excellence list. The award ceremony aims to "re-establish public confidence" in the insurance sector, yet the inclusion of a financially regressing firm has sparked debate over whether the regulator is prioritising optics over fiscal reality.

Attempts to reach both IDRA officials and Green Delta’s CEO, Farzana Chowdhury, for comment have so far proved unsuccessful. As the awards ceremony approaches, the industry remains divided on whether this accolade celebrates genuine governance or merely masks a deepening crisis.