Bismillahir Rahmanir Rahim

All praise be to the Almighty Allah, Lord of the Universe and peace and blessing of Allah be upon the Prophet Muhammad (SM) and his descendants and companions.

Dear Shareholders,

Assalamu Alaikum Wa-Rahmatullah.

It is my immense pleasure to present a brief observation of the Company’s performance during the year 2008. Fareast Islami Life Insurance Co. Ltd. is a Shariah Compliant life insurance company having sharpened operational pattern, unique customer focus, expansion of branch network, new business development, building of an efficient and a dedicated work force and ensuring the highest level of transparency in all spheres of operations.

The year 2008 is the 9th year of operation since the Company’s inception in 2000. Fareast Islami Life has set another record in the year 2008. After a very bright start to the year, the downturn in the global economy inevitably left its impact on the second half of 2008. Nevertheless, Fareast Islami Life experienced a year of substantial growth and profitability in which all of our business segments did very well. During the year we also took many important measures for making Fareast Islami Life a leading Life Insurance in this sub-continent in providing islami life insurance services.

In the year 2009 our business grew in all areas of our operations despite volatile economic situation, price hiking of essentials, natural disaster like floods and Sidor. The Company did well as compared to the market in terms of turnover. Exceptional performance in each operational area was observed.  
 
In the year 2008 the Company earned total premium of Tk. 677.85 crore which is 111.97% higher comparing to the previous year. On the other hand the Company has generated Tk. 402.43 crore in the Life Fund during the year which shown a growth of 68.22% over the previous year and total Life Fund of the company stood at Tk. 992.36 crore at the closing of the year 2009. In addition it is very pleasant message for all concern that total assets of the Company stood at Tk.
1100.31 crore in 2009 from Tk. 455.18 crore of 2008, showing 70.56% growth having a very unique trend. The trend could be depicted below:

Fareast Islami Life has a strong operating platform and a clear focused strategy. Quality investment portfolio, strong capital base and product diversification, will continue to be a priority. We have built a leading position in our core businesses and are thus well-placed to benefit from a flight to quality. We will continue to develop new products, new models and build on our competitive edge in operations.

We believe that capacity building to ensure optimum contribution to the company is a vital issue. In turn, it is dependent on the professional capability of the employees in the operational policies, guidelines and availability of modern infrastructural facilities. The human and other resources along with the business and operational processes have been restructured and re-engineered. Our Company acts on the conviction that Human resource is the most valuable asset. It is our continuous endeavor to create mutual trust and dignity and our investment in Human resource development is the key to sustainable growth. Company plans to hire, develop and retain its human resource base with the right level of skills and talent to meet current and future needs. The employees of the Company are given on the job training and send to different training programs, seminars, workshop at home and abroad. The Training & Research Academy of the Company arranges various courses, workshops and seminars on important aspects of Insurance Deserving staffs are rewarded as per their performance with accelerated promotion, monetary and other incentives.

Progressively, globalization is forcing countries and business operating within them to re-evaluate their comparative advantages and to adjust to a world in which emerging markets compete not only in terms of cost but also in skills and technology. The globalization of the services industry, spurred on by new technology and the rapid fall in communication cost, will afford huge opportunities but also pose significant challenges to many areas of economic activities including insurance services.

Technology is fast changing in the insurance sectors. The services are now technology based and our insurance has been proactive in this regard. M-Solution has been implemented by the Company. The module is known for its world-class technology and flexibility. 2009 was a remarkable year for Fareast Islami Life Insurance Co. Ltd. The most significant development was the migration of software platform. IT team has successfully implemented many of the modules of the insurance operations. We believe that Technology will play an increasingly vital role in future we are continuously providing more and more IT based services to our participants.

As we look forward, the near-term outlook continues to be very challenging. Conditions remain difficult for the economy at large. Investment avenues have become very limited particularly investment in Govt. is very poor yield generating avenue. Real estate markets shall remain slow. Our financial market conditions for both credit and liquidity are still tight and investors both private and institutional remain wary. The environment for the financial sector is therefore likely to remain challenging in the near future.

Nevertheless ok objective in 2010 is to achieve strong growth in business encompassing good governance and faster customer service. Particular emphasis will be given on improving product mix and reducing management expenses by increasing renewal business. Profitability will be increased by business growth and by increasing productivity of resources. Customer service will be improved by upgrading our online insurance system, increased distribution network and offering new products to provide unique value to our participants.

The Board of Directors of the Fareast Islami Life consists of successful personalities in respective area of Trade, Commerce and Industry of the country. It may be mentioned here that under the proactive guidelines, policy, direction and monitoring of the Board, Management conducts its operations. The Companies also has a Shariah Council consisting of prominent Fuquah, Economists, Lawyers, Bankers to advise and guide the Board and the Management on Shariah matters relating to the operations.

Under the able guidance of the Board of Directors and the Shariah Council, the Professional Management Team carry out the operation of the Company, ensuring Good Governance through sound and best Corporate Governance practices and risk management process. The result that was achieved by the Company so far is due to the diving blessings of Allah Shobahanahu-T’ala and constant guidance, cooperation and support of the Board & Shariah Council and devoted, dedicated and hard work of the Management Team and all functionaries of the Company.

Sincere thanks and heartfelt gratitude are due to our respected Shareholders, valued Policyholders (Participants) patrons and well-wishers for their continued wholehearted supports and advices in all our development programs. We should like to pay our special thanks and gratitude to the Government Agencies, Controller of Insurance, Securities and Exchange Commission, Office of the Registrar of Joint Stock Companies and Firms, Dhaka Stock Exchange and Chittagong Stock Exchange for their co-operation and support for the development of the Company. The Management is expressing its sincere thanks and gratitude to the honorable Members of the Board of Directors for their prudent policy guidelines in achieving the Company’s cherished goals. Thanks to my colleagues of all levels for their sincere efforts in uplifting the Company’s image by rendering distinctive services to our valued clients.

Looking forward, ensuring highest policyholders care, Shariah compliance and maintaining competitive premium rates will be the trust of future. I believe the gains made over the past years will be instrumental for superior positioning of the Company in the future. Our strategy will add to our strength by focusing on areas where we have an advantage today and where we can grow faster than our competitors in the days ahead.

We believe we will continue to impress upon our stakeholders by achieving our goals for the coming years.

May Allah help us, Ameen.

Ma-Assalam,




(Md. Hemayet Ullah)
Managing Director