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Sonali Life Under Shadow of Tk 353 Crore Irregularities as Surplus Plunges 67%

Nine-month surplus falls by Tk 61.47 crore • Operating cash flow turns negative • Some current board members named in earlier investigations • Recovery of disputed funds remains unclear

Special Correspondent

Sonali Life Insurance PLC is facing renewed scrutiny as its latest financial disclosures reveal a sharp deterioration in operating performance, while allegations of financial irregularities involving approximately Tk 353 crore remain unresolved.

The insurer’s surplus declined by Tk 61.47 crore, or approximately 67 percent, during the first nine months of 2026 compared with the corresponding period last year. Its net operating cash flow per share also turned negative, raising questions about financial management, liquidity and the company’s ability to maintain policyholder confidence..

Members of the board of directors and senior executives of Sonali Life Insurance PLC attend the company’s 13th Annual General Meeting on August 26, 2026.

The latest developments have brought renewed attention to earlier investigations into alleged financial misconduct involving the company’s former chairman, members of his family and former senior executives.

### Surplus falls sharply

According to the company’s unaudited third-quarter financial disclosures, Sonali Life recorded a deficit of Tk 4.01 crore in its life revenue account during July to September 2026. In the corresponding quarter of 2025, the company had reported a surplus of Tk 18.58 crore.

For the January to September period, its surplus stood at Tk 29.69 crore, compared with Tk 91.16 crore during the same period a year earlier.

The year-on-year decline of Tk 61.47 crore represents a reduction of approximately 67 percent.

Net operating cash flow per share deteriorated to negative Tk 4.79 from positive Tk 7.95 a year earlier.

However, the company’s life insurance fund increased from approximately Tk 896.38 crore to Tk 925.64 crore, indicating that the decline in surplus did not coincide with a reduction in the reported fund balance.

The contrasting figures underscore the need for a closer examination of the company’s earnings, cash flows, policy liabilities and claims settlement capacity.

### Tk 353 crore irregularities under investigation

The company’s financial performance has revived concerns surrounding an earlier investigation by the Bangladesh Financial Intelligence Unit (BFIU), which reportedly identified irregularities involving approximately Tk 353 crore.

The investigation, reported in September 2024, examined transactions involving former chairman Mostafa Golam Quddus, members of his family and former senior executives.

Among the allegations was the payment of Tk 139.10 crore in connection with the acquisition of a building without the necessary approvals from the board and insurance regulator.

Investigators also raised questions about substantial cash withdrawals from company bank accounts and the alleged use of corporate funds for personal expenditure.

The individuals concerned previously disputed the allegations, maintaining that several transactions related to building rent, loan repayments and software purchases. Responsibility for certain irregularities was also attributed to the company’s former chief executive.

These allegations have not been established as proven wrongdoing in the information reviewed for this report.

### Bank accounts frozen in separate corruption case

In a related investigation into the alleged misappropriation of Tk 187.84 crore, the Anti-Corruption Commission (ACC) initiated legal proceedings in 2024.

On June 1, 2025, a court ordered the freezing of 141 bank accounts and 11 beneficiary owner (BO) accounts linked to individuals concerned in the case.

The current status of those orders, subsequent investigative findings, any charges filed and the amount of money recovered could not be independently established.

The Tk 353 crore figure cited in the BFIU investigation and the Tk 187.84 crore cited in the ACC proceedings relate to different investigative findings. They should not be added together as a single established loss.

Mostafa Golam Quddus, the company’s founder and former chairman, died on January 25, 2025.

### Questions surrounding the current board

According to information published in connection with Sonali Life’s annual general meeting held on August 26, 2026, the company’s board is chaired by Moinul Islam.

Directors identified in the AGM proceedings included Zafar Iqbal, ndc, Fazlatun Nesa, Mostafa Kamrus Sobhan, Fawzia Kamrun Tania, Sheikh Mohammad Daniel and Omar Khayyam.

Additional Managing Director Md Rafiqul Islam was serving as acting chief executive officer.

The names of Fazlatun Nesa, Mostafa Kamrus Sobhan and Fawzia Kamrun Tania also appeared in earlier published reports concerning the financial investigations and account-freezing proceedings.

Their present legal status in connection with those matters could not be independently confirmed. Their inclusion in previous reports does not, by itself, establish liability or wrongdoing.

The AGM approved a 15 percent cash dividend for 2025. At the meeting, the chairman also expressed commitments to strengthening governance, financial discipline and policyholder protection.

The key issue now is whether the current board has made measurable progress in resolving legacy financial disputes, strengthening internal controls and restoring confidence in the company’s management.

### Policyholders deserve clarity

The decline in surplus and deterioration in operating cash flow have emerged against the backdrop of unresolved historical allegations.

There is no verified evidence establishing that the earlier alleged irregularities directly caused the company’s latest financial deterioration. The two developments must therefore be assessed separately.

Nevertheless, the combination raises important questions for shareholders, policyholders and regulators.

How much of the allegedly misappropriated money has been recovered? What is the present status of the frozen accounts? Have the investigations resulted in final charges or judicial findings? And does the deterioration in operating cash flow have implications for the company’s ability to settle insurance claims?

These questions warrant clear, documented responses.

The Insurance Development and Regulatory Authority (IDRA), the ACC and Sonali Life’s current management have important roles in providing transparency over the company’s financial position and the progress of earlier investigations.

Updated responses from these authorities and the company were not available for inclusion in this report.

For Sonali Life, restoring confidence will depend not merely on statements of commitment but on demonstrable financial discipline, transparent governance and the protection of policyholders’ interests.