Performance Evaluation of Selected Private Life Insurance Companies in Bangladesh

Abstract

In a developing country like Bangladesh insurance sector plays a vital role in the progress of economic development. In this paper we have tried to analyze the development and growth of selected Private Life Insurance Companies of Bangladesh. It is observed that all the selected Private Life Insurance Companies were able to achieve a stable growth of premium, total assets during the period of 2007-2011.Seven trend equations have been tested for different activities of private life insurance companies. Among them the trend value of premium, investment fund, total assets, earnings per share etc. are positive incase of all the selected private life insurance companies. Square of correlation coefficient (r²) has also been tested for all trend equations. The r² of premium, investment fund and total assets is more than 0.5. It indicates the prospect of private life insurance Companies in Bangladesh is very bright.