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79
----_ .. - Annual Report 2008
I I ARAB INSURANCE CO.
Consotidated Balance Sheet as of 31 December 2008,2007
Assets 20Q8 2007
Depo sits at b.ein~ 8.385,495 6,732,311
1" Financial assets 10 r trad ing 3,269,116 6,154,076
Available for sale financial assets 1,106,038 1,390,318
Held to mat LJrtty i nvestme nts 141,800 249,800 :
Property investments 3,320,057 i 3,145,212
Loans 134,048 139,238
Total.nvestments 161366,554 17,810,955
I Cash on hand and at banks 710,584 538,419
,
.
Receiva ble notes & post - dated cneq u es 1,146,421 1,354,636
Acto unts receiva ble - net ._ 4,128,747 3,505,043
Due from othe r i nsu rs rs 1,017,649 972,267
Fixed assets ~ net ! .1,223,508 , 1,222,807
r
Iota nc ibie ass ets ~ net 80,658 98,987
othe r ass ets 269,553 255,057
L Total Assets 24,993,874 25,158,171 Liabilities & Shareholders' Equity 2008 2007
liabilities
Unearned premium provislcn- net 4,359,653 4,822,839
, Outstandin g claims prow io n-net 5,825,659 4,723,420
Math ernaf ca I p rovis io n-net 1,599,767 2,080,430 !
Unexpi red ns ks provls 10 n 0 59,100
Catastrophic risks provision 0 : 156,749 i
TotaJ J IlSU ran ce Contracts Liabi lities 11,785,279 11~842,538
I Acco unts paya bl e 717,141 I 619,969
• •• r _ ... ~- -.-_.
Accru ed expenses 41,237 86,575
Due to other insurers "1,.46,172 789,571
Provisions 272.104 229,740
..
J ncorne tax pro visio n 490,505 527,730
, other liabilities 1,118,839 1,389,860
Total Uabnities 15,571;1.77 15,485t983
Shire hOldet'S' Equ ity
Capita I (ALJth onzed & Paid up) 8,000,000 8.000,000 ~
StatutoI)' reserve 1,419,048 1,391,649
Reta med earn ing s 3.549 880,539
Total Shareholders' Equity 9.422,597 ; 10.272t188
I Total UabUttles & Shareholders' Equity 24.993,874 25.758.171 .__j 80
.---- - ------,~--
Annual RepDrt 2008
. I I A.RAB INSURANCE CO.
Cunsolidated Income Statement for the Period Ended 31 December 200&. 2007
2008 2007
Revenues
Gross written premiums 17,436,895 15,272,362 ,
Reins u ran ce sn are (5.071,961 ) (3,759,O22)
Net written eremiums 12,364t93' ! 11,503~340
Ch a n 9 as j nun earned p rem i umprovision 462,987 (1,074,911)
Changes in mathematical provision , 480,663 189,633 ,
Net Eamed Premiums Income 13,308.684 10.61Bt062
Commissio n received 996,653 768,805
, tss u i ng fees 530,099 I 584,865
Other reven u es - no n I ire u nderwrit i ng 215,849 Q
j nte rest rave n ues I 422,178 I 388,125
,
Ga in (toss) fro m finarwJa j assets & investments it ,493.701) 993,935
other revenues 71,782 13,270
TotaJ Revenues 14~0.61 ,444 13,386,862
Claims t iosses & Expe n ses
Paid claims 11,326,775 , 10,385.855
Maturity & surrenders 265,875 I 222.255
Recoveries {670.0581 (680,555) ;
; Reinsurance share (2,162,633) (1,674,01S)
,
Net Paid Claims 8,759t959 8.253,540
Changes tn outstanding claims 533,863 (26{l,652)
Allocated staff expenses 1,974,263 1,650,782
Allocated general &. administrative expenses 498,078 401,771
Excess of loss premiums 225,145 249,607
Commission paid 657,003 842,481
other expenses - non life underwrtling 282,560 163.842
. Cost of C I BIl'llS Inc urre d
12930871
11 292371
- , ! i l ,
N at a 110 cated staff expe nses 493,566 412,696
Depreciation 215T361 202,446
Not a uocsted general & ad min istrative expe rises 124,519 100,443
Do u btfu I de bts expe nses 13,135 13.000
; Other expenses 5,480 79,938
Total Expo nses , 852,061 808~23
Profit before Tax for the year 268f512 1,285.968
Inca me tax for the yea r (150,000) (100,OOO}
Prior year income tax (328,103)_ {295,OOO)
Net (.oss) profit after Tax for the _year (209.6911 i 89D,968 81
-_._... .------~---
Financial Statements as of Decem ber 31/12/2008
~-----~-~---
, ...
I
~ARJS~
IN~ERNATIC'~~L
".
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INDEPENDENTAUDlTORS' REPORT TO THE SHAREHOLDERS OF
Arab Life &Accidenttnsurance CO. (P. s. C.)
AMMAN· THE HASHEMITE KINGDOM OF JORDAN '
Report on the Compiled Financial statements
We have audited the accompanying Compiled Financial Statements oftheArab Ufe &AccJdent Insurance CO . (P. S_ C.) whicn cornpnse the CompJled balance sheet as at December 31 .2008 and the Compiied mcorre Statement. Compiled Statement of Changes tn Equity, and Compiled Cash Flow statement forthe year then ended _ And a s ummalY of sign meant accou nti ng po I icies and other explan atory notes,
Management's ResponsibiUty for the COIllp'iled Financial Statements
Management is res pan s ibla to rtne prepa ration and fair presentatio n ottn ese Compiled Financial Statements in accord a nee with I ntemation a I Fin a nola I Re porting St.a nd a res and th e accou nti ng policies stated in Note (2) _ This responsibility includes: designing, implementing and maintaining internal control relevant to the preps ratio n and fair pres ~ ntatlc n of Compiled Fi nencia I state me nts th at are free from materi al misstate me nt, whether d ue to fra u d or error; selectJng and applying appropriate account' ng policies; a nd maki ng acco u nting estimates that are reasonable in the circumstances,
Auditor's Res ponsibility
Our responsibility is to express an opinion 01'1 these Compiled Financial Statements based on our audtt, We coneu dad 0 ur audit in acco rdance wtth lnternauona I Standards on Auditing, Those standards require that we complywtth ethical requirements and plan and perform the audltto obtain reasonable assurance whether the Compfled Financial statements are free of mate rial misstatement.
. All a ud it involves pertorrm ng procedu res to obtain a ud it e vjd B nee a bout th e amou nts and discJ os ures j n the Co mpiled Fi nan etal State me nts _ Th e proceo ures selected de pen d on the a uoitor's j ud 9 ment, in eluding assessing the risks of material misstatement ortne Comptled FioancLal statements, whether due to fraud or erro r; j 11 making those ns k assessments, th e a ud ito r co n s kla rs jnte rnal co ntrol rsle wnt to ttl e entity's prepa ratio nand faj r presentati 0 n of the Compiled F inanctaj Statements in 0 mer to design audit proced u res that are appropriate in the circumstances, but riot for the purpose of expressing an opinion on the effectiven ess of the entity's control. An a ud IT also includes eva lu ati ng th e . appro prlate ness of acco u nting policies used and the re asonaete ness of B ceo unting estimates mad e by man ag ernent, as wen as eval uating the overan presentation of the Compiled Ftnancial Statement.
We believe th at the aud it evidence we 11 ave 0 btained is suffIcient and appropri ate to provide a bas ts for 0 u r audit 0 pin ion ,
Opinion
I n our opin ion. the Compiled Fin a n cial state ments present fai r1y. in a II mate rial respects the Flna ncial Position of the Arab Life & Accir.1ent Insurance CO. (P, S, C.) as at December 31,2008 and of its Compiled FinancJal PertOnnance and its Compiled cash Flows for the year then ended in accordance wITh the ~nternational FFnancia I ReportIng Standards an d the accou nting policies stated in Note (2) .
Re port on Othe r Legal a nd Reg u latory Requ tre ments
in oompr~nce with the Jordanjan Companies Law [10. (22} of 1 997 and its amendment laws, we obtained the necessary information and explanations for our audit, and the company maintains proper accou ntin 9 bo oks of accounts and the accompanying Compiled Financial Statements agree wtth the Compiled Financial Statements incorporated in the Board ofDireGtor..l' report
Based on the above, we reco rnrnen d th e Ge ne ra I Asserno Iy to a pprove the accompanying Compiled Ana ncial Statements.
FOR IBRAHIM ABBASI & CO,
Dr, Ibrahim M_ Abbasi License No. 116 Amman - February 1, 2009
83
~---------------~~~-
Ann~al Report 2008
Board Of Directors
Mr. Diraar A Ighanim - Chairman
Aig na n im I ntern afiona I Corporati on W. L. L President I Kuwatl
Dr. Kamal AI-Shair - Vice Chairman Dar AI-Ha ndasa h Con su ltants
(Shajr and Partners)
President I lebanon
Until 21/0812009
Mr. Said Khoury
C onso Ilaated Contractors I nte rnanon al Co. SAL Preside nt I Greece
Me mber represe nti ng AI- Said Co. Ltd
Mr. Kh aled A r -Babtai n
Abelel M uh se n A~-Babtaj n Grou p Chief 8re cutive Office r I Kuwait Member re press nti ng
Abdel MilMan AI-Babtain Group
Mr. Tawfiq AI-Sultan Towell ITIle mati on a I Gro up Manag i ng Dlrecto r / Kuwait Towell mternationat Group
Mr. Suieiman H amad A~-Daiali C h airman & Ma 11 til 9 ing Dire ctor AI-Ahleia Insurance CQ.- Kuwait
Member Represinting AI·Ahleia Insurance Co.- Kuwait
Mr. Shawky Ali Fakhro Chairman & Ma n ag ing Dj rector
Air Bin Yousef FaKhro & Sons. - Bahrarl'l Member Representing
Afi Bi n Yousef F akh ro & Sons
Mr. Ahmed Hamzeh Tantash Jordan
Member
Mr. Daoud Al-Kurd Jordan
Member
84
I I ARAB lNSURANCE co.
Annual Report 2008
Offices
Head Office
Shme lsa n f - Abd u I H a mid Sh araf 81. P.O,Box: 925250 Amman 11190 Jordan Tel: 06/5693180
Fax. 06/5693188
E. ma ij: ala@arange.jo
Local Branches
• Amman AI-Wehdat
TeL 06/4777744
• Irbid Tel,02l7273940
• Aqaba
Tel. 03/2Q17775
A broad Branches
• Palestine
RamaIlatlTel,02129986620- P,O.Box: 1213
Nabuls Tel. 09/2376927
• Associate Com pany A ra b Ufe Ins urance Co. Leba non - Be irut Tel:Oll 342446-351152 P_D Box: 117338
85
I I ARAB INSURANCE CO,
Arab Life & Accidents Insurance Company
Annual Report 2008
Table Of Contents The Aud itors' Report
The Consolidated Balance Sheet The Consolidated income statement