Financial performance analysis of Green Delta Insurance Company Limited

Abstract

This internship report is based on my internship program and financial statements of 2008, 2009, 2010, 2011 and 2012 of Green Delta Insurance Company Limited. In my internship period, I worked in Internal Audit Department. It was a great opportunity to experience and gather knowledge different types of insurance operations. My faculty supervisor helped me to choose the topic- “Financial Performance Analysis of Green Delta Insurance Company Limited”. In this report the overall scenario of GDIC has been discussed. Then, the functions of each of the department have been given. After that, as an intern of internal audit department the overall scenario and functions of internal audit department are discussed with the details. The main key of existence of insurance company is its business. For that reason, it has different insurance products and services with each of its specific criteria and requirement. GDIC has too and in this report the details of it have been discussed. In the new competitive business era, Insurance sector is getting more competitive in Bangladesh. In this sector the most used financial statements are the balance sheet and profit and loss account where the balance sheet shows the financial position and profit and loss account shows the net profit or net loss of an insurance company. Ratio Analysis deals with these statements. In this report, the industry analyses are done through ratio analysis of three different companies of Green Delta Insurance Company Limited, Reliance Insurance Company Limited and Agrani Insurance Company Limited. By doing industry analysis one can easily compare the financial performance of the companies. Ratio analysis helps a company to take necessary steps regarding the conditions, finding the loop holes of the company and then the necessary steps can be taken to prevent the condition. Then the stock valuation is done with the help of market information and then found out whether the stock price of GDIC is undervalued or overvalued and found out the probable reasons of specific condition. Furthermore, the overall condition, problems, prospects and the recommendations of insurance companies or insurance sector have been discussed. Then, the recommendations for GDIC have been found out so that it can take a look of those and develop its condition to develop its existence in the insurance industry. At the end, it can be said that GDIC is one of the leading non-life insurance companies in the insurance industry. It has own reputation and market. For sustaining in the insurance industry it needs to compete with other companies. For that reason it should focus on the innovation and development by competing itself so that it can uplift its own standard from the previous standard.