Progressive Life to offload assets as unpaid claims hit Tk159cr
Cash-strapped insurer is selling land and floor spaces to ease its liquidity crisis, settle overdue claims
Progressive Life Insurance Company Limited has put several of its real estate assets up for sale as it seeks to raise funds to settle a large backlog of insurance claims which hit Tk159 crore.
The move comes as the insurer faces severe financial pressure, with nearly 94% of its claims reportedly remaining unresolved.
According to a tender notice issued by the company, Progressive Life is inviting bids for commercial spaces, flats, parking spaces and land plots in Dhaka and Moulvibazar.
The assets include flats and parking spaces at Navana Rahim Ardent in Kakrail, several rooms across different floors of Eastern Arju Complex in Bijoynagar, 14.09 decimals of land in Aftabnagar and 30.95 decimals of land in Moulvibazar. Interested bidders have been asked to submit their offers by 22 September, 2026.
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The decision to sell the properties underscores the financial strain facing the insurer as it seeks to mobilise funds to meet its obligations to policyholders.
Data from the Insurance Development and Regulatory Authority (IDRA) reveals a grim picture. As of March 2026, Progressive Life faced total claims amounting to Tk169.90 crore. However, it managed to settle only Tk10.67 crore, representing a dismal settlement ratio of just 6.28%. This leaves a staggering Tk159.23 crore in unsettled claims, creating immense hardship for policyholders.
Furthermore, the company's Life Insurance Fund, the primary reserve used to pay future liabilities, stands at a mere Tk64.80 crore, which is less than half of its current outstanding debt to claimants.
Market analysts observe that Progressive Life's financial health has been deteriorating for years. The company, which was listed on the stock exchanges in 2006, has been relegated to the 'Z' or junk category due to its poor operational performance and failure to reward shareholders. The insurer has not paid any dividends since 2020 and its shares closed at Tk38.60 today (31 August) on the Dhaka Stock Exchange.
Industry insiders suggest that while the asset sale may provide immediate cash flow, the company requires radical structural reforms and better governance to restore its shrinking life fund and regain the trust of its customers.
