Since S Alam Group’s acquisition of Padma Islami Life Insurance in 2018, the company has faced severe financial challenges. As of June 30, 2024, the life fund has plunged into a deficit of Tk272 crore, with outstanding claims rising to Tk230 crore, compared to a positive life fund of Tk45 crore and claims of Tk70 crore when the group took over. The Insurance Development and Regulatory Authority (IDRA) notes that a negative life fund indicates insufficient funds to meet insurance claims. Restructuring in October 2018 involved transferring 44.78% of shares to S Alam Group’s affiliates. The previous management was criticized for irregularities and mismanagement. Despite efforts to reform the company, including policy improvements and addressing claims, the financial condition worsened due to economic impacts of COVID-19 and geopolitical tensions. Padma Islami Life Insurance’s life fund suffered from poor investments, including substantial expenditures on land and construction of Padma Life Tower. The company has borrowed Tk154 crore from S Alam Group and paid only a 2% cash dividend in 2022. It is currently traded under the Z category on the Dhaka Stock Exchange, with shares priced at Tk21.70.
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