Eastern Insurance Company Limited (EICL) incorporated on 7 June 1986 as a public limited company under the companies act 1994. It commenced business on 15 July 1986 with a view to running all types of general insurance business except life insurance, pursuant to the Insurance Act 1938 and other related laws and regulations. The authorised capital of the company is Tk 100 million divided into 1 million ordinary shares of Tk 100 each. Its paid up capital was Tk 30 million at inception and rose to Tk 60 million in December 2000. The sponsors (Group-A shareholders) subscribed 50% of the share capital and the remaining 50% is owned by the public (Group-B shareholders). The company went public on 31 October 1993 and is listed with both the Dhaka and Chittagong stock exchanges. The head office of the company is at dhaka and at present, it conducts general insurance business through 31 branches all over Bangladesh. Fifteen branches, including the local office of the company, are in Dhaka city, three are in chittagong and the rest are at different district headquarters.

The company underwrites risks involved in trade and properties and provides their security through insurance and reinsurance services. The major risk underwriting business of the company covered fire insurance, marine cargo and hull insurance, motor insurance and miscellaneous areas. The company participates in the co-insurance business. It re-insures the risks undertaken with the sadharan bima corporation.

EICL experienced considerable growth in its business performance. In 2000, the gross premium income of the company stood at Tk 140 million and its net premium income at Tk 92.70 million. Net claims settled by the company varied with the variations in the volume of business. Claims settled in 1989, 1995 and 2000 were Tk 6.74 million, Tk 13.10 million and Tk 7.60 million respectively. EICL earned underwriting profits in almost every year of its operation and such profits were Tk 1.40 million in 2000. The company has also earned an investment income each year from its investments in the National Investment Bond, shares and debentures and other investments including FDR and short-term deposit accounts. Every business year, the company maintains a special reserve fund for covering exceptional losses, which amounted to Tk 30.13 million in 1999 and Tk 31.23 million in 2000. The net profit before tax of the company stood at Tk 12.50 million in 2000 and between the years 1994 and 2000, the dividend paid by the company fluctuated between 15% and 20%. On 31 December 2000, the value of the company's assets was Tk 304.90 million.

The management team of the company includes 23 executive officers under the leadership of the managing director and a 20-member board of directors. In July 2001, the company had 404 employees. [S M Mahfuzur Rahman]