print - jordan insurance company 2009.pdf · e-mail: [email protected] madina branch - amman...
TRANSCRIPT
ContentBoard of Directors’ Report 09
Independent Auditor’s Report 18
Balance Sheet 19
Income Statement 21
Changes in Shareholders’ Equity 22
Cash Flow Statement 23
Notes to Financial Statement 31
55
Our Branches:
United Arab EmiratesAbu Dhabi: Tel.: +971 2 6344800 Fax: +971 2 6330495Dubai: Tel.: +971 4 2698810 Fax: +971 4 2692174Sharjah: Tel.: +971 6 5395566 Fax: +971 6 5395556
KuwaitKuwait: Tel.: +965 2 454160 Fax: +965 2 454180
Contact Us:
Head Office3rd Circle - AmmanP.O.Box 279 Amman 11118 JordanTel.: +962 6 4634161 Fax: +962 6 4637905E-mail: [email protected]
Madina Branch - AmmanTel.: +962 6 4638107 Fax: +962 6 4646917E-mail: [email protected]
Aqaba Branch - AqabaTel.: +962 3 2039194 Fax: +962 3 2039193P.O.Box 1415 Aqaba 77110 Jordan
Kuwait
Amman
Dubai
Abu Dhabi
Sharjah
Branches
Aqaba
66
General Manager
Mr. Imad M. Abdel Khaleq
Auditors
Deloitte & Touche (M.E.)
Deputy General Manager
Finance & Administration
Secretary of the Board
Mr. Mustafa M. Dahbour
Board of Directors
Mr. Othman M. Bdair (Representing Arab Technical Constructions Co.starting from 15/3/2009)
H.E. Mr. Waleed M. Asfour(Starting from 15/3/2009)
Mr. Khaldun A. Abu Hassan(Representing Al-Mashreq Development & Marketing Co.till 15/3/2009)
Mr. Osama J. Sha’sha’a
Mr. Christian Kraut (Representing Munich Re Co.)
Mr. Shehadeh Sh. Twal
Mr. Imad M. Abdel Khaleq
Mr. Kamal Gh. Al-Bakri (Representing Al-Maseera Investment Co.)
Mr. Samih Madi
Mrs. Huda Bdair
Mr. Mohammed M. Ennab (Representing Arab Supply & Trading Co.)
Miss. Aya Kh. Abu Hassan(Starting from 15/3/2009)
Chairman
Deputy Chairman
Chairman
Director
Director
Director
Director
Director
Director
Director
Director
Director
Letter from the Chairman
99
Dear Shareholders,
Peace be upon you.
The Board of Directors is pleased to welcome you to
the 58th Ordinary Meeting of the General Assembly
and to present its annual report for the financial year
ending on 31/12/2009.
The year 2009 was characterized by instability as a
result of the continuing global financial crisis and its
extended impact on the public and private economic
sectors.
This had a clear impact on the national economy,
represented by receding economic indicators, where
the economic growth rate during 2009 fell to 2.1%
compared to 4.5% in 2008, while public debt rose by
9.4% reaching $13 billion, foreign investments fell by
65%, exports fell by more than 20%, the budget
deficit increased to $1.26 billion due to lower
revenues resulting from the drop of foreign aid,
reduced tax returns, custom fees, real estate and
land registration fees, as well as increased expenses
mainly due to rising oil prices, and increased
government expenditure.
The crisis, which befell the Arab Gulf countries,
constituted an added pressure on the national
economy, represented by the decline of expatriates’
transfers and loss of job security due to shrinking job
opportunities, which has contributed to raising the
level of unemployment. Moreover, the Amman
Stock Exchange indicator fell by 8.15% during 2009,
and the market value of listed companies' shares fell
by nearly $3.95 billion, registering $31.92 billion at
the end of the year.
On the other hand, the year 2009 witnessed a very
important achievement when A.M. Best, one of the
most authoritative global insurance rating agencies,
assigned a rating of B++ (good) to JIC in recognition
of its professionalism and exceptional performance
in the provision of its insurance services at the local
and regional levels, and for maintaining this
performance under all circumstances, especially the
global economic crisis that had a negative impact on
the rating of many insurance companies in the
world.
This rating will provide JIC with a very important
strength factor, as it raises the level of its
competitiveness, enhances confidence, and opens
the door for regional expansion, being one of the ten
best insurance companies in the Arab world that had
received this rating.
Despite the difficult economic circumstances, JIC
has also maintained its performance level and
accomplished good results. Premiums have
increased by 3.7%, reaching JD40 million, from
which a technical profit of JD4.6million was
achieved. This has enhanced JIC’s production
capacity and its leading position in the Jordanian
insurance sector. JIC’s market share reached 9.5%,
while net profits reached JD3 million.
In this context, JIC’s business in the Kingdom of Saudi
Arabia had ceased entirely as of the beginning of
2009. Consequently, JIC lost major premiums, which
it will endeavor to replace from other locations.
However, to maintain its historical presence in Saudi
Arabia, JIC currently has a 12.2% share of the SR200
million capital of the Arabia Insurance Cooperative
Company, in which JIC is a founding member. This
Company has launched cooperative insurance
operations at the beginning of 2009. The market
In the name of God, the Most Merciful,the Most Gracious
Letter from the Chairman
1010
t value of its share reached SR25.9, (with a nominal
value of SR10 per share) by the end of 2009.
In 2009, JIC established the Aqaba branch, which
will become active at the beginning of 2010.
The unhealthy competition, especially in pricing,
that is occurring in the Jordanian insurance sector
draws on a huge question mark on the fate of this
sector and its ability to serve the national economy.
Maintaining invested capitals in this sector and
protecting them from decline and recession require
that insurance companies, through the Jordan
Insurance Federation, reconsider their policies and
coordinate to have balanced underwriting policies
that ensure the integrity and continuity of this sector.
We also hope that the convening 28th General Arab
Insurance Conference (GAIF), under the patronage
of HM King Abdullah II Bin Al-Hussein, in Jordan in
2010 will have a positive impact on the Jordanian
insurance sector, which holds the responsibility for
rendering this Conference a success through
preparation, sponsorship and presenting the
Jordanian insurance sector as a model to be adopted.
ReinsuranceIt is a well-known fact that global and regional crises
have a direct impact on reinsurance companies, and
therefore reinsurance contracts face major
difficulties year after year. Moreover, practices
exercised by local insurance companies in 2009,
especially companies that compete on the basis of
declining premiums and in a manner that does not
correspond to the nature of insured risks, have led to
an unprecedented hard-line approach by global
reinsurance companies, especially the major ones
that hold leading positions in the reinsurance sector.
However, because of its high level of professionalism
and its good historical relationship with re-insurers
that is based on trust and credibility, your Company
was able to renew its reinsurance treaties for 2010
with elite reinsurance companies and with better
conditions and rates than previous treaties and in a
manner that serves the best interest of both parties.
BranchesJIC’s branches in the United Arab Emirates and our
Agency in Kuwait have achieved high technical
results that reflect your Company’s exceptional
standing with its clients in those markets, despite all
the challenges and restrictions facing the insurance
business in such markets. Written premiums in
those branches reached JD7.1 million, being 17.85%
of JIC’s total production, of which net profits of
JD1.7 million were fulfilled, being 38.6% of JIC’s
profit before distribution.
Financial and Real Estate InvestmentsThe year 2009 witnessed a decline in financial
markets’ activity as well as unstable prices, especially
in the Amman Stock Exchange and the Palestinian
Financial Market. This has forced JIC to reduce its
investment activities, both sales and purchases,
opting instead to wait and hold on to strategic and
excellent shares in order to avoid price fluctuations
and maintain the portfolio within a limited margin
of change. We hope that market conditions will
improve and revive in 2010.
In 2009 the market value of JIC’s equity portfolio has
increased to JD37 million compared to JD27 million
in 2008, which has positively affected shareholders
equity by JD6.6 million.
In order to strengthen its investment base and the
strength of its financial solvency, JIC has increased
its real estate investments this year by purchasing
lands in good locations for good prices. It has taken
advantage of opportunities within the limits of its
financial capacity and the restrictions of the
Insurance Commission.
JIC continues to perform capital maintenance of its
buildings base with the purpose of upgrading them
and making them more suitable and more attractive
to tenants for good prices. We hope this process will
conclude in 2010 and the occupancy rate of the
buildings will exceed 95%, which would constitute a
good support for JIC’s net results.
1111
The Future Plan
1. Continue to expand horizontally by opening new branches in neighboring markets.
2. Continue to expand in existing markets.
3. Adhere to the Company’s strategy of preserving its leading position in the local market through a prudent and disciplined underwriting policy.
4. Train technical staff in line with JIC’s policy of expansion in order to maintain a high level of professionalism in the service of its clients.
5. Provide Bancassurance services with leading banks.
6. Pursue expansion through mergers and acquisitions.
7. Upgrade IT applications and develop the IT department.
8. Maintain JIC’s rating of B++ (good) and improving it.
9. Establish a Risk Management Unit.
In conclusion, the Board of Directors would like to extend its thanks and appreciation to all our employees and
staff who contributed to the success and accomplishments of the Company, and to all our clients and agents
for their continued trust and support, as well as our reinsurance partners for their devotion and loyalty.
We ask God Almighty to guide us towards success in the service of our national economy under the directives
of His Majesty King Abdullah II Bin Al-Hussein.
CHAIRMAN OF THE BOARD
Othman M. Bdair
Letter from the Chairman
Income Statement Information
1212
Insurance Premiums
2009Gross Written PremiumNet Earned PremiumInvestment ResultOther RevenueTotal RevenueNet Claims PaidOther ExpensesTotal Expenses Result Before Taxes
Net Result After Tax
“These statements are selective extracts from the English Financial Statement and should be read together with it.”
The overall premiums written by the Company during 2009 was distributed between lines of business as follows:
- Marine:Gross Written Premium during the year 2009 was JD 2,917 million compared to JD 3,706 million in 2008.Loss ratio in 2009 was 37.04% compared to 37.03% in 2008
- Fire & General Accidents:Gross Written Premium during the year 2009 was JD 12,849 million compared to JD 12,657 million in 2008.Loss ratio in 2009 was 66.70% compared to 34.96% in 2008
- Motor: Gross Written Premium during the year 2009 was JD 14,220 million compared to JD 13,571 million in 2008. Loss ratio in 2009 was 61.72% compared to 63.06% in 2008
- Life: Gross Written Premium during the year 2009 was JD 6,149 million compared to JD 5,142 million in 2008.Loss ratio in 2009 was 59.01% compared to 70.25% in 2008
- Medical: Gross Written Premium during the year 2009 was JD 4,074 million compared to JD 3,259 million in 2008.Loss ratio in 2009 was 53.220% compared to 51.210% in 2008.
2008 20062007 2005 27,506,936 14,371,309 (313,552)2,921,207
16,978,964 8,234,663 6,701,814
14,936,477 2,042,486
1,468,083
33,852,854 16,994,558
1,350,921 4,240,764
22,586,243 10,715,291 16,417,582 27,132,873 (4,546,630)
(5,399,565)
38,334,75017,744,127
6,582,9193,618,410
27,945,45610,705,879
7,708,96818,414,847
9,530,609
8,460,011
39,848,03318,786,929
1,595,9703,905,510
24,288,40911,122,650
9,246,14420,368,794
3,919,615
3,006,339
22,344,976 13,401,687 21,104,844
2,033,032 36,539,563
8,560,898 6,011,515
14,572,413 21,967,149
19,021,695
Balance Sheet Information
1313 “These statements are selective extracts from the English Financial Statement and should be read together with it.”
InvestmentReal EstateFinancial InvestmentOthersTotal AssetsShareholders' Equity
2009
Gross Written PremiumReinsurance GWP Share
Gross Claims PaidReinsurance Share
22,344,9768,665,450
11,210,1863,547,541
27,506,93612,370,465
14,133,3866,208,463
33,852,85415,482,154
15,381,7565,811,706
38,334,75020,436,321
15,522,0435,878,069
39,848,03321,049,828
19,647,1409,075,322
20062007 200520082009
50
40
30
20
10
0200720062005 2008 2009
Reinsurance GWP ShareGross Written Premium
Gross Claims Paid Reinsurance Share
JOD
Mill
ions
Year
Board of Directors’ Report
60,277,7577,529,438
52,659,82488,495
72,675,73943,394,742
33,783,7966,107,315
27,571,695104,786
48,843,43628,501,513
42,701,113 5,983,339
36,598,776 118,998
61,458,769 35,690,138
44,731,1156,049,552
38,611,22370,340
64,628,98540,634,829
53,468,71212,103,67741,287,168
77,86771,531,88748,140,795
20062007 20052008
Capital Growth
Technical Profit2008
2,145,5413,121,0553,316,7584,573,7404,641,8342009 20062007 2005
5
4
3
2
1
02009
Year
JOD
Mill
ions
Year
JOD
Mill
ions
30
25
20
15
10
5
020052001198719821952 1962 20092008
Paid-up Capital 1,100,0005,000,00010,000,000 400,000 100,00019872001
20,000,00030,000,00030,000,0002005
20082009 1982 1962 1952
2008200720062005
1414“These statements are selective extracts from the English Financial Statement and should be read together with it.”
Independent Auditor’s Report
1818
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair
presentation of these financial statements in accordance with
International Financial Reporting Standards. This responsibility
includes: designing, implementing and maintaining internal
control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement,
whether due to fraud or error; selecting and applying
appropriate accounting policies; and making accounting
estimates that are reasonable in the circumstances.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in
accordance with International Standards on Auditing. Those
standards require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance
whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud
or error. In making those risk assessments, the auditor considers
internal control relevant to the Company’s preparation and fair
presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of
the Company’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and
the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all
material respects, the financial position of Jordan Insurance
Company as of December 31, 2009, and its financial
performance and its cash flows for the year then ended in
accordance with the International Financial Reporting
Standards. We recommend that the General Assembly of
Shareholders approves these financial statements.
Explanatory Matter
Without qualifying our opinion, as stated in Note (13) to the
financial statements, the Company settled its income tax for its
branches in Saudi Arabia until the year 2005 and filed its Zakah
Tax returns for the years 2006 and up to the year 2008 but no
final tax settlement has been reached. However, in the opinion
of the Company’s management and its tax consultant, the
income tax provision is sufficient to cover the tax liabilities for
the unsettled years as of the financial statements date.
Report on Legal Requirements
The Company maintains proper accounting records and the
accompanying financial statements are in agreement therewith and
with the financial data presented in the Board of Directors' report.
The accompanying financial statements are a translation of the
statutory financial statements which are in the Arabic language and
to which reference should be made.
Amman- Jordan Deloitte & Touche (M.E.) – Jordan
February 11, 2010
We have audited the accompanying financial statements of Jordan Insurance Company, which comprise of the statement of financial position as of December 31, 2009, statement of income, statement of comprehensive income, statement of changes in shareholders’ equity and statement of cash flow for the year then ended, and a summary of significant accounting policies and other explanatory notes.
AM/7953
To the General Assembly
Shareholders of Jordan Insurance Company
(A Public Limited Shareholding Company)
Amman – Jordan.
Financial Statements
1919 “These statements are selective extracts from the English Financial Statement and should be read together with it.”
Balance Sheet
To the General Assembly of Shareholders of
Jordan Insurance Company Plc.
Amman - Jordan
Deposits at banks
Trading investments
Available investments for sale
Held investments to maturity
Property investments
Loans and advances of the life department
Total Investments
Cash on hand and at banks
Checks under collection and notes receivable
Accounts receivable - net
Insurance companies accounts - debit
Assets deferred tax
Fixed assets - net
Other assets - net
Disposed assets
TOTAL ASSETS
3
4
5
6
7
8
9
10
11
12
13
14
15
10,306,257
638,475
26,394,052
1,272,439
6,049,552
70,340
44,731,115
2,625,077
1,015,118
9,409,076
1,936,757
243,304
1,315,635
940,779
2,412,124
64,628,985
3,235,953
538,587
36,512,628
1,000,000
12,103,677
77,867
53,468,712
2,326,830
944,594
8,767,055
3,274,949
371,028
1,231,362
1,147,357
-
71,531,887
Note
NumberAssets
JD JD
31 December
2009 2008
Financial Statements
2020“These statements are selective extracts from the English Financial Statement and should be read together with it.”
Note
NumberLiabilities
Mr. Othman M. BdairChairman
H.E. Waleed M. AsfourDeputy Chairman
16
17
18
19
13
20
21
6,773,190
5,403,086
1,509,802
255,000
13,941,076
869,657
3,848,875
785,251
1,569,165
561,459
-
2,418,671
23,994,156
30,000,000
6,484,627
(1,989,054)
6,139,256
40,634,829
64,628,985
6,875,680
5,717,708
1,418,588
400,000
14,411,976
2,590,028
4,032,884
636,041
1,004,466
664,356
51,341
-
23,391,092
30,000,000
6,889,271
6,260,573
4,990,951
48,140,795
71,531,887
JD JD
31 December
2009 2008
Unearned premiums provision - net
Outstanding claims provision -net
Accumulated mathematical reserve - net
Other technical provisions
Total Insurance Contract Liabilities
Accounts payable
Insurance companies accounts - credit
Other provisions
Income tax provision
Other liabilities
Liabilities deferred tax
Liabilities directly related to the disposed assets
Total Liabilities
SHAREHOLDERS' EQUITY
Authorized and paid - up capital
Statutory reserve
Cumulative change in fair value
Retained earnings
Total Shareholder Equity
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
2121 “These statements are selective extracts from the English Financial Statement and should be read together with it.”
Income Statement for the Year Ended
To the General Assembly of Shareholders of
Jordan Insurance Company Plc.
Amman - Jordan
222324
25+26
25
26
NoteNumber
Financial Statements
33,192,5225,142,228
16,918,4943,517,827
17,898,429(126,990)
(27,312)17,744,127
2,406,052446,074193,898
6,582,919572,386
27,945,456
18,047,6272,525,584
495,9955,878,069
10,139,969565,910
4,131,471308,092836,090621,187
16,602,719545,967237,799220,757202,307
-229,716375,582
1,812,1289,530,609
(1,064,050) 8,466,559
(6,548)8,460,011
33,699,522 6,148,511
16,576,291 4,473,537
18,798,205 (102,490)
91,214 18,786,929
2,228,850 613,562 250,994
1,595,970 812,104
24,288,409
22,503,761 2,856,621 236,210
9,075,322 10,808,028
314,622 4,522,507
316,183 912,222 708,845
17,582,407 648,329 229,273 259,635 166,983
1,129,028 -
353,139 2,786,387 3,919,615 (913,276)
3,006,339 -
3,006,339
8,460,011
(3,515,320)4,944,691
3,006,339
8,249,627 11,255,966
Comprehensive Income Statement
Net income
Gross income items:
Cumulative change in fair value for year after tax
Net Income for the Year
JD JD
31 December 2009 2008
JD JD
For the year ended 31 December 2009 2008
Revenues:Direct insurance - non life
Direct insurance - life
Deduct: Reinsurance share - non life
Reinsurance share - life
Net Written PremiumsChange in unexpired risks provision
Change in mathematical provision
Net Earned Premium IncomeCommissions received
Issuing fees
Interests revenue
Income from financial assets and investments - net
Other revenues
Total RevenuesClaims, Losses, ExpensesClaims paid
Subtract: recoveries
Add: maturity & surrender of policies
Reinsurance share
Net Claims PaidChange in outstanding provision
Allocated administrative expenses
Excess-of-loss premium
Commissions paid
Other expenses
Cost of Claims IncurredEmployee expenses undistributed
Depreciation & amortization expenses
Unallocated administrative and general expenses
Provision for doubtful debts
Impairment loss in fair value
Fund expenses
Other expenses
Total ExpensesNet Income Before Income Tax from Continued Operations Provisions for income taxNet Income Before Income TaxNet income from discontinued operations - after income tax
Net Income After Tax
2222“T
he
se s
tate
me
nts
are
se
lec
tive
ext
rac
ts fr
om
th
e E
ng
lish
Fin
an
cia
l Sta
tem
en
t a
nd
sh
ou
ld b
e re
ad
to
ge
the
r with
it.”
Consolidated Statements of Changes in Shareholders’ Equity
Jord
an
In
sura
nc
e C
om
pa
ny
A P
ub
lic
Sh
are
ho
ldin
g C
om
pa
ny
Am
ma
n -
Jo
rda
n
21
21
JD JD JD JD
NoteNumber
Authorized andPaid-upCapital
StatutoryReserve
Retained(Losses)Earnings Total
VoluntaryReserve
Cumulative Change
In Fair Value
31/12/2009
Balance - beginning of the year
Net income for the year
Cumulative change in fair value
Impairment loss in fair value
Comprehensive income for the year
Appropriated from profit to reserves
Dividends paid throughout the year
Balance - End of the Year
31/12/2008
Balance - Beginning of the year
Net income for the year
Cumulative change in fair value
Comprehensive income for the year
Appropriated from profit to reserves
Balance - End of the Year
JDJD
30,000,000
-
-
-
-
-
-
30,000,000
30,000,000
-
-
-
-
30,000,000
6,484,627
-
-
-
-
404,644
-
6,889,271
5,502,224
-
-
-
982,403
6,484,627
6,139,256
3,006,339
-
-
3,006,339
(404,644)
(3,750,000)
4,990,951
(4,738,352)
8,460,011
-
8,460,011
2,417,597
6,139,256
(1,989,054)
-
9,378,655
(1,129,028)
8,249,627
-
-
6,260,573
1,526,266
-
(3,515,320)
(3,515,320)
-
(1,989,054)
-
-
-
-
-
-
-
-
3,400,000
-
-
-
(3,400,000)
-
40,634,829
3,006,339
9,378,655
(1,129,028)
11,255,966
-
(3,750,000)
48,140,795
35,690,138
8,460,011
(3,515,320)
4,944,691
-
40,634,829
Fina
ncia
l Sta
tem
ents
Financial Statements
2323 “These statements are selective extracts from the English Financial Statement and should be read together with it.”
Cash Flow Statement
To the General Assembly of Shareholders of
Jordan Insurance Company Plc.
Amman - Jordan
9,530,609
237,799202,307
75,609 -
(51,756) -
1,242,430971,806133,713
- 12,342,517
(29,187)
(2,600,397) (704,424)
(2,592,331) (219,782)
210,396
760,234 11,983
(178,594)7,000,415
(1,624,639) (22,870)
(122,244) (55,000)
5,175,662
940,318 (3,179,629)
202,500 (14,212)
1,912,834 - -
(138,189)
- 2,159,887
800,000 2,959,887
7,997,3603,146,132
11,143,492
3,919,615
229,273166,983111,888178,215 (1,045)
1,129,028 102,490 314,622
(91,214)145,000
6,204,855
70,524 475,038
(1,338,192) (78,327)
(206,578)
1,720,371 184,009 (68,741) 105,895
7,068,854 (1,605,699)
(59,175) (133,182)
(55,000)5,215,798
78,110 (2,946,636)
272,439 (7,527)
(6,198,080) 2,412,124
(2,418,671) (8,808,241)
(3,697,998) - -
(3,697,998) (7,290,441)11,143,4923,853,051
2929
JD JD
31 December
2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES:Net income before income tax fees
Adjustment for:
Depreciation & amortization expenses
Doubtful debts provision
Provision for staff end - service indemnity
Change in fair value for trading investment
Real estate investment return
Impairment loss in fair value
Unearned premiums provision - net
Outstanding claims provision - net
Mathematical provision - net
Various technical provision - net
Net Income Before Changes in Working Capital(Increase) Decrease in Current Assets:Checks under collection and notes receivable
Accounts receivable
Insurance companies accounts
Trading investments
Other assets
Increase (Decrease) in Current Liabilities:Accounts payable
Insurance companies accounts
Various provision
Other liabilities
Net Cash Flows from Operating Activities Before TaxIncome tax paid
Staff end-of-service indemnity paid
Amount paid from the scientific research and technical training fund reserve
Board of Directors' remuneration paid
Net Cash Flows from Operating ActivitiesCASH FLOWS FROM INVESTING ACTIVITIES:Deposits at banks
Investments available for sale
Investments held to maturity
Loans of the life department
Property investments & fixed assets - net
Disposed assets
Disposed liabilities
Net Cash Flows (Used in) Investing ActivitiesCASH FLOWS FROM FINANCING ACTIVITIES:Dividends paid
Due to bank
Due to short-term loan
Net Cash Flows (Used in) Financing ActivitiesNet increase (decrease) in cash
Cash on hand and at banks - beginning of the year
Cash On Hand And At Banks - End of the Year
Financial Statements
2424“These statements are selective extracts from the English Financial Statement and should be read together with it.”
Underwriting Profit (Loss) Account for
the Motor Department for the Period Ended 31st December
To the General Assembly of Shareholders of
Jordan Insurance Company Plc.
Amman - Jordan
DescriptionWritten PremiumsDirect insurance
Faculrative reinsurance accepted
Local reinsurance share
Foreign reinsurance share
Net Written PremiumsOpening BalanceUnearned premium provision
Deduct: reinsurance Share
Net Unearned Premium ProvisionEnding BalanceUnearned premium provision
Deduct: reinsurance share
Net Unearned Premium ProvisionChange in Unexpired Risks ProvisionNet Earned Premium IncomeClaims paid
Salvage and subrogation
Local reinsurance share
Foreign reinsurance share
Net Claims PaidClosing Outstanding Claims ProvisionReported
IBNR
Deduct : reinsurance share
Net Outstanding Claims ProvisionOpening Outstanding Claims ProvisionReported
IBNR
Deduct: reinsurance share
Net Outstanding Claims ProvisionChange in Outstanding ProvisionCost of Claims IncurredNet Earned Premium IncomeCost of Claims IncurredAddCommissions received
Issuing fees
Other revenues
Total RevenuesDeductCommissions paid
Excess-of-loss premium
Allocated administrative expenses
Other expenses
Total Expenses
Underwriting Profit (Loss)
12,773,142797,377382,717
57,96713,129,835
6,224,000278,689
5,945,311
6,247,879188,897
6,058,982(113,671)
13,016,16410,709,720
2,426,429136,800198,128
7,948,363
4,423,606132,473183,421
4,372,658
4,240,695118,953246,394
4,113,254259,404
8,207,76713,016,164
8,207,767
7,15269,58430,687
4,915,820
412,137212,361
1,957,477175,747
2,757,722
2,158,098
5,562,596--
57,9675,504,629
2,587,98630,397
2,557,589
2,843,66230,056
2,813,606(256,017)5,248,6123,785,632
976,914728
179,7732,628,217
1,592,73243,80437,000
1,599,536
1,431,40835,583
202,3941,264,597
334,9392,963,1565,248,6122,963,156
4,3281,871
-2,291,655
303,355141,597840,362
-1,285,314
1,006,341
7,210,546797,377382,717
-7,625,206
3,636,014248,292
3,387,722
3,404,217158,841
3,245,376142,346
7,767,5526,924,0881,449,515
136,07218,355
5,320,146
2,830,87488,669
146,4212,773,122
2,809,28783,37044,000
2,848,657(75,535)
5,244,6117,767,5525,244,611
2,82467,71330,687
2,624,165
108,78270,764
1,117,115175,747
1,472,408
1,151,757
12,940,4911,279,321
425,72334,992
13,759,097
6,247,879188,897
6,058,982
6,287,720224,308
6,063,412(4,430)
13,754,66711,025,142
2,723,628100,017(20,907)
8,222,404
4,532,750137,040195,848
4,473,942
4,423,606132,473183,421
4,372,658101,284
8,323,68813,754,667
8,323,688
8,94095,068
239,1205,774,107
423,930201,183
2,204,807280,618
3,110,538
2,663,569
5,018,478--
34,9924,983,486
2,843,66230,056
2,813,606
2,518,25322,922
2,495,331318,275
5,301,7613,982,0151,070,106
-(14,431)
2,926,340
1,416,16648,77262,553
1,402,385
1,592,73243,80437,000
1,599,536(197,151)2,729,1895,301,7612,729,189
8,94012,137(4,169)
2,589,480
260,19972,868
972,022-
1,305,089
1,284,391
7,922,0131,279,321
425,723-
8,775,611
3,404,217158,841
3,245,376
3,769,467201,386
3,568,081(322,705)8,452,9067,043,1271,653,522
100,017 (6,476)
5,296,064
3,116,58488,268
133,2953,071,557
2,830,87488,669
146,4212,773,122
298,4355,594,4998,452,9065,594,499
- 82,931
243,2893,184,627
163,731128,315
1,232,785280,618
1,805,449
1,379,178
JD
Total
JD
2009
Abroad
JD
Jordan
JD
Total
JD
2008
Abroad
JD
Jordan
Financial Statements
2525 “These statements are selective extracts from the English Financial Statement and should be read together with it.”
Underwriting Profit (Loss) Account for
the Marine Department for the Period Ended 31st December
To the General Assembly of Shareholders of
Jordan Insurance Company Plc.
Amman - Jordan
DescriptionWritten PremiumsDirect insurance
Faculrative reinsurance accepted
Local reinsurance share
Foreign reinsurance share
Net Written PremiumsOpening BalanceUnearned premium provision
Deduct: reinsurance share
Net Unearned Premium ProvisionEnding BalanceUnearned premium provision
Deduct: reinsurance share
Net Unearned Premium ProvisionChange in Unexpired Risks ProvisionNet Earned Premium IncomeClaims paid
Salvage and subrogation
Local reinsurance share
Foreign reinsurance share
Net Claims PaidClosing Outstanding Claims ProvisionReported
IBNR
Deduct : reinsurance share
Net Outstanding Claims ProvisionOpening Outstanding Claims ProvisionReported
IBNR
Deduct: reinsurance share
Net Outstanding Claims ProvisionChange in Outstanding ProvisionCost of Claims IncurredNet Earned Premium IncomeCost of Claims IncurredAddCommissions received
Issuing fees
Other revenues
Total RevenuesDeductCommissions paid
Excess-of-loss premium
Allocated administrative expenses
Other expenses
Total Expenses
Underwriting Profit (Loss)
3,601,033105,187
90,6022,820,079
795,539
649,499479,208170,291
536,777377,677159,100
11,191806,730
1,384,60913,619
1,1191,192,836
177,035
1,615,5362,951
1,343,459275,028
1,829,0354,824
1,680,549153,310121,718298,753806,730298,753
751,671101,853
7,1381,368,639
118,58021,304
406,31014,937
561,131
807,508
1,071,514--
803,906267,608
133,57479,38654,188
156,70492,04164,663
(10,475)257,133
82,3022,405
-36,59343,304
689,429722
573,829116,322
45,061902
28,18717,77698,546
141,850257,133141,850
212,939(1,598)
-326,624
67,1687,166
100,284-
174,618
152,006
2,529,519105,187
90,6022,016,173
527,931
515,925399,822116,103
380,073285,636
94,43721,666
549,5971,302,307
11,2141,119
1,156,243133,731
926,1072,229
769,630158,706
1,783,9743,922
1,652,362135,534
23,172156,903549,597156,903
538,732103,451
7,1381,042,015
51,41214,138
306,02614,937
386,513
655,502
2,834,23282,85360,662
2,446,763409,660
536,777377,677159,100
474,914389,589
85,32573,775
483,4352,742,158
32,909655,624
1,852,178201,447
1,779,1883,346
1,529,867252,667
1,615,5362,951
1,343,459275,028(22,361)179,086483,435179,086
593,13720,42487,760
1,005,670
112,41230,000
292,93712,230
447,579
558,091
970,227--
830,019140,208
156,70492,04164,663
98,57669,78128,79535,868
176,076697,998
666-
581,726115,606
66,4281,915
46,49521,848
689,429722
573,829116,322(94,474)
21,132176,076
21,132
194,908952
(2,155)348,649
74,69710,26899,829
-184,794
163,855
1,864,00582,85360,662
1,616,744269,452
380,073285,636
94,437
376,338319,808
56,53037,907
307,3592,044,160
32,243655,624
1,270,45285,841
1,712,7601,431
1,483,372230,819
926,1072,229
769,630158,706
72,113157,954307,359157,954
398,22919,47289,915
657,021
37,71519,732
193,10812,230
262,785
394,236
JD
Total
JD
2009
Abroad
JD
Jordan
JD
Total
JD
2008
Abroad
JD
Jordan
Financial Statements
2626“These statements are selective extracts from the English Financial Statement and should be read together with it.”
Underwriting Profit (Loss) Account for
the Fire Department for the Period Ended 31st December
To the General Assembly of Shareholders of
Jordan Insurance Company Plc.
Amman - Jordan
DescriptionWritten PremiumsDirect insurance
Faculrative reinsurance accepted
Local reinsurance share
Foreign reinsurance share
Net Written PremiumsOpening BalanceUnearned premium provision
Deduct: reinsurance share
Net Unearned Premium ProvisionEnding BalanceUnearned premium provision
Deduct: reinsurance share
Net Unearned Premium ProvisionChange in Unexpired Risks ProvisionNet Earned Premium IncomeClaims paid
Salvage and subrogation
Local reinsurance share
Foreign reinsurance share
Net Claims PaidClosing Outstanding Claims ProvisionReported
IBNR
Deduct : reinsurance share
Net Outstanding Claims ProvisionOpening Outstanding Claims ProvisionReported
IBNR
Deduct: reinsurance share
Net Outstanding Claims ProvisionChange in Outstanding ProvisionCost of Claims IncurredNet Earned Premium IncomeCost of Claims IncurredAddCommissions received
Issuing fees
Other revenues
Total RevenuesDeductCommissions paid
Excess-of-loss premium
Allocated administrative expenses
Other expenses
Total Expenses
Underwriting Profit (Loss)
9,007,9841,828,5302,000,1258,386,201
450,188
3,023,2592,834,103
189,156
4,027,7803,850,488
177,29211,864
462,0521,119,738
79,12563,470
823,205153,938
3,248,2802,473
2,988,927261,826
1,699,0725,539
1,481,514223,097
38,729192,667462,052192,667
1,327,937134,273
-1,731,595
152,06574,427
1,029,68656,362
1,312,540
419,055
721,3603,689
-617,716107,333
321,621274,489
47,132
268,728231,108
37,6209,512
116,845153,637
45,864-
79,20528,568
79,693476
67,22212,947
144,5871,081
121,66424,004
(11,057)17,511
116,84517,511
175,466(3,749)
-271,051
59,38115,94379,219
-154,543
116,508
8,286,6241,824,8412,000,1257,768,485
342,855
2,701,6382,559,614
142,024
3,759,0523,619,380
139,6722,352
345,207966,101
33,26163,470
744,000125,370
3,168,5871,997
2,921,705248,879
1,554,4854,458
1,359,850199,093
49,786175,156345,207175,156
1,152,471138,022
-1,460,544
92,68458,484
950,46756,362
1,157,997
302,547
JD
Total
JD
2009
Abroad
JD
Jordan
JD
Total
JD
2008
Abroad
JD
Jordan
8,523,9232,172,2292,596,9017,598,515
500,736
4,027,7803,850,488
177,292
3,975,1503,786,694
188,456(11,164)489,572
2,212,94181,827
145,1671,780,767
205,180
9,278,2883,012
8,796,376484,924
3,248,2802,473
2,988,927261,826223,098428,278489,572428,278
1,300,136136,078
68,6401,566,149
155,72385,000
783,33956,477
1,080,539
485,610
800,35337,75336,259
684,645117,202
268,728231,108
37,620
318,777268,053
50,724(13,104)104,098
87,45277,40331,486
(31,679)10,242
93,542140
84,4729,210
79,693476
67,22212,947(3,737)
6,505104,098
6,505
182,280594
(3,552)276,915
68,91617,58674,566
-161,068
115,847
7,723,5702,134,4762,560,6416,913,870
383,535
3,759,0523,619,380
139,672
3,656,3733,518,641
137,7321,940
385,4752,125,489
4,424113,681
1,812,446194,938
9,184,7462,872
8,711,904475,714
3,168,5871,997
2,921,705248,879226,835421,773385,475421,773
1,117,856135,484
72,1921,289,234
86,80767,414
708,77356,477
919,471
369,763
Financial Statements
2727 “These statements are selective extracts from the English Financial Statement and should be read together with it.”
Underwriting Profit (Loss) Account for
the Liability Department for the Period Ended 31st December
To the General Assembly of Shareholders of
Jordan Insurance Company Plc.
Amman - Jordan
DescriptionWritten PremiumsDirect insurance
Faculrative reinsurance accepted
Local reinsurance share
Foreign reinsurance share
Net Written PremiumsOpening BalanceUnearned premium provision
Deduct: reinsurance share
Net Unearned Premium ProvisionEnding BalanceUnearned premium provision
Deduct: reinsurance share
Net Unearned Premium ProvisionChange in Unexpired Risks ProvisionNet Earned Premium IncomeClaims paid
Salvage and subrogation
Local reinsurance share
Foreign reinsurance share
Net Claims PaidClosing Outstanding Claims ProvisionReported
IBNR
Deduct : reinsurance share
Net Outstanding Claims ProvisionOpening Outstanding Claims ProvisionReported
IBNR
Deduct: reinsurance share
Net Outstanding Claims ProvisionChange in Outstanding ProvisionCost of Claims IncurredNet Earned Premium IncomeCost of Claims IncurredAddCommissions received
Issuing fees
Total RevenuesDeductCommissions paid
Allocated administrative expenses
Other expenses
Total Expenses
Underwriting Profit (Loss)
1,504,30973,32381,140
1,469,11827,374
940,506927,526
12,980
979,348966,364
12,984(4)
27,37021,285
6,4111,161
10,1103,603
208,94460
167,54041,464
155,052-
126,90128,15113,31316,91627,37016,916
231,81115,878
258,143
7,466160,127
2,576170,169
87,974
34,955--
26,2868,669
18,30915,566
2,743
25,61020,622
4,988(2,245)
6,424-----
2,400-
2,160240
2,400-
2,160240
--
6,424-
10,21968
16,711
4,8493,670
-8,519
8,192
1,469,35473,32381,140
1,442,83218,705
922,197911,960
10,237
953,738945,742
7,9962,241
20,94621,285
6,4111,161
10,1103,603
206,54460
165,38041,224
152,652-
124,74127,91113,31316,91620,94616,916
221,59215,810
241,432
2,617156,457
2,576161,650
79,782
1,446,869109,880111,347
1,415,47829,924
979,348966,364
12,984
791,692776,889
14,803(1,819)28,10538,11018,257
-14,326
5,527
648,31392
599,89548,510
208,94460
167,54041,464
7,04612,57328,10512,573
176,48513,503
205,520
6,582159,724
3,573169,879
35,641
44,999--
35,3989,601
25,61020,622
4,988
20,39015,700
4,690298
9,899-----
2,400-
2,160240
2,400-
2,160240
--
9,899-
13,367185
23,451
5,9994,814
-10,813
12,638
1,401,870109,880111,347
1,380,08020,323
953,738945,742
7,996
771,302761,189
10,113(2,117)18,20638,11018,257
-14,326
5,527
645,91392
597,73548,270
206,54460
165,38041,224
7,04612,57318,20612,573
163,11813,318
182,069
583154,910
3,573159,066
23,003
JD
Total
JD
2009
Abroad
JD
Jordan
JD
Total
JD
2008
Abroad
JD
Jordan
Financial Statements
2828“These statements are selective extracts from the English Financial Statement and should be read together with it.”
Underwriting Profit (Loss) Account for the
Other Classes Department for the Period Ended 31st December
To the General Assembly of Shareholders of
Jordan Insurance Company Plc.
Amman - Jordan
DescriptionWritten PremiumsDirect insurance
Local reinsurance share
Foreign reinsurance share
Net Written PremiumsOpening BalanceUnearned premium provision
Deduct: reinsurance share
Net Unearned Premium ProvisionEnding BalanceUnearned premium provision
Deduct: reinsurance share
Net Unearned Premium ProvisionChange in Unexpired Risks ProvisionNet Earned Premium IncomeClaims paid
Salvage and subrogation
Local reinsurance share
Foreign reinsurance share
Net Claims PaidClosing Outstanding Claims ProvisionReported
IBNR
Deduct : reinsurance share
Net Outstanding Claims ProvisionOpening Outstanding Claims ProvisionReported
IBNR
Deduct: reinsurance share
Net Outstanding Claims ProvisionChange in Outstanding ProvisionCost of Claims IncurredNet Earned Premium IncomeCost of Claims IncurredAddCommissions received
Issuing fees
Total RevenuesDeductCommissions paid
Allocated administrative expenses
Other expenses
Total Expenses
Underwriting Profit (Loss)
242,7472,108
29,347211,292
99,62218,68080,942
107,16519,04988,116(7,174)
204,11849,729
--
22,43527,294
189,405455
115,49274,368
153,057-
84,28968,768
5,60032,894
204,11832,894
10,6951,041
182,960
16,99224,681
3,67745,350
137,610
189,538-
4,945184,593
86,59211,27375,319
91,53911,03780,502(5,183)
179,41022,487
---
22,487
45,324375
-45,699
58,956-
10,36048,596(2,897)19,590
179,41019,590
1,978113
161,911
15,74019,293
-35,033
126,878
53,2092,108
24,40226,699
13,0307,4075,623
15,6268,0127,614
(1,991)24,70827,242
--
22,4354,807
144,08180
115,49228,669
94,101-
73,92920,172
8,49713,30424,70813,304
8,717928
21,049
1,2525,3883,677
10,317
10,732
JD
Total
JD
2009
Abroad
JD
Jordan
JD
Total
JD
2008
Abroad
JD
Jordan
236,0071,609
39,085195,312
107,16519,04988,116
97,15113,40583,746
4,370199,682
21,944---
21,944
279,202366
189,49390,075
189,405455
115,49274,36815,70737,651
199,68237,651
12,8391,296
176,166
14,03731,174
5,26150,472
125,694
170,602-
5,217165,385
91,53911,03780,502
76,4612,173
74,2886,214
171,59921,944
---
21,944
39,966366
-40,332
45,324375
-45,699(5,367)16,577
171,59916,577
2,087157
157,266
12,38324,479
-36,862
120,404
65,4051,609
33,86929,927
15,6268,0127,614
20,69011,232
9,458(1,844)28,083
-----
239,236-
189,49349,743
144,08180
115,49228,66921,07421,07428,08321,074
10,7521,139
18,900
1,6546,6955,261
13,610
5,290
Financial Statements
2929 “These statements are selective extracts from the English Financial Statement and should be read together with it.”
Underwriting Profit (Loss) Account for
the Medical Department for the Period Ended 31st December
To the General Assembly of Shareholders of
Jordan Insurance Company Plc.
Amman - Jordan
DescriptionWritten PremiumsDirect insurance
Faculrative reinsurance accepted
Foreign reinsurance share
Net Written PremiumsOpening BalanceUnearned premium provision
Deduct: reinsurance share
Net Unearned Premium ProvisionEnding BalanceUnearned premium provision
Deduct: reinsurance share
Net Unearned Premium ProvisionChange in Unexpired Risks ProvisionNet Earned Premium IncomeClaims paid
Local reinsurance share
Foreign reinsurance share
Net Claims PaidClosing Outstanding Claims ProvisionReported
IBNR
Deduct : reinsurance share
Net Outstanding Claims ProvisionOpening Outstanding Claims ProvisionReported
IBNR
Deduct: reinsurance share
Net Outstanding Claims ProvisionChange in Outstanding ProvisionCost of Claims IncurredNet Earned Premium IncomeCost of Claims IncurredAddCommissions received
Issuing fees
Other revenues
Total RevenuesDeductCommissions paid
Allocated administrative expenses
Other expenses
Total Expenses
Underwriting Profit (Loss)
3,155,930102,960
1,599,0901,659,800
437,087189,567247,520
519,840243,124276,716(29,196)
1,630,6041,890,018
130,2541,029,499
730,265
206,403436,676418,001225,078
295,57355,769
230,967120,374104,704834,969
1,630,604834,969
28,86494,286
119,3441,038,129
71,911234,452286,682593,045
445,084
142,287-
86,93555,352
5,3003,0362,264
54,15243,38310,769(8,505)46,847
182,681130,254
11,42940,998
----
16,726-
13,4673,259
(3,259)37,73946,84737,739
28,81318,557
-56,478
1,85221,748
6,98930,589
25,889
3,013,643102,960
1,512,1551,604,448
431,787186,531245,256
465,688199,741265,947(20,691)
1,583,7571,707,337
-1,018,070
689,267
206,403436,676418,001225,078
278,84655,769
217,500117,115107,963797,230
1,583,757797,230
5175,729
119,344981,651
70,059212,704279,693562,456
419,195
3,952,186121,530
1,845,2162,228,501
519,840243,124276,716
828,235388,298439,938
(163,222)2,065,2792,699,656
-1,545,9511,153,706
128,314242,477200,225170,566
206,403436,676418,001225,078(54,512)
1,099,1942,065,2791,099,194
60,30285,28719,306
1,130,981
94,249422,390313,069829,708
301,273
72,145-
44,88227,263
54,15243,38310,769
28,31323,674
4,6396,130
33,39351,406
-41,13310,273
----
-----
10,27333,39310,273
60,016--
83,136
7514,941
7,77922,795
60,341
3,880,041121,530
1,800,3342,201,238
465,688199,741265,947
799,923364,624435,299
(169,352)2,031,8862,648,250
-1,504,8171,143,433
128,314242,477200,225170,566
206,403436,676418,001225,078(54,512)
1,088,9212,031,8861,088,921
28785,28719,306
1,047,845
94,174407,449305,290806,913
240,932
JD
Total
JD
2009
Abroad
JD
Jordan
JD
Total
JD
2008
Abroad
JD
Jordan
Financial Statements
3030“These statements are selective extracts from the English Financial Statement and should be read together with it.”
Underwriting Profit (Loss) Account for
the Life Department for the Period Ended 31st December
To the General Assembly of Shareholders of
Jordan Insurance Company Plc.
Amman - Jordan
DescriptionWritten PremiumsDirect insurance
Faculrative reinsurance accepted
Local reinsurance share
Foreign reinsurance share
Net Written PremiumsOpening BalanceMathematical provision
Deduct: reinsurance share
Net Mathematical ProvisionEnding BalanceMathematical provision
Deduct: reinsurance share
Net Mathematical ProvisionChange in Mathematical ProvisionNet Earned Premium IncomeClaims paid
Maturity & surrender of policies
Local reinsurance share
Foreign reinsurance share
Net Claims PaidEnding BalanceReported
Deduct: reinsurance share
Net Outstanding Claims ProvisionOpening BalanceReported
Deduct: reinsurance share
Net Outstanding Claims ProvisionChange in outstanding provisionCost of Claims IncurredNet Earned Premium IncomeCost of Claims IncurredAddCommissions received
Issuing fees
Investment income attributable to U/W
Other revenues
Total RevenuesDeductCommissions paid
Excess-of-loss premium
Allocated administrative expenses
Other expenses
Total ExpensesUnderwriting Profit (Loss)
4,344,600 797,628 694,850
2,822,977 1,624,401
1,708,397 225,907
1,482,490
1,971,185 461,383
1,509,802 (27,312)
1,597,089 2,872,528
495,995 1,626,522
642,530 1,099,471
600,677 448,013 152,664
508,973 378,751 130,222
22,442 1,121,913 1,597,089 1,121,913
47,922 29,159
322,108 100,930 975,295
56,939 26,389
318,738 54,817
456,883 518,412
5,000,088 1,148,423 1,035,895 3,437,642 1,674,974
1,971,185 461,383
1,509,802
1,931,003 512,415
1,418,588 91,214
1,766,188 3,763,810
236,210 80,375
2,921,825 997,820
721,908 524,884 197,024
600,677 448,013 152,664
44,360 1,042,180 1,766,188 1,042,180
77,010 261,906 180,069
- 1,242,993
105,289 (24,535)628,136
62,152 771,042 471,951
JD
Jordan
JD
Jordan
20082009
Notes To Financial Statements
3131
1. General a. The Company was established in 1951 and is registered as a Jordanian Public Shareholding Company under Number (11) with a paid-up capital of JD 100,000. On July 12, 1981, the Company’s capital was raised to JD 1,100,000.
On May 1, 1988, the Company merged with General Assurance Company for the Near East (National Union) in Jordan, after the evaluation of the two companies assets. Accordingly, the Company’s capital was increased to JD 5,000,000 divided into 5,000,000 shares.
The Company's capital was raised gradually with the latest increase in 2006, in which the authorized company’s capital was raised by JD 10,000,000 to reach JD 30,000,000 divided between 30,000,000 shares.
The Company is involved in various insurance activities and has branches in Riyadh, Jeddah, Khobar, Abu Dhabi, Sharjah, Dubai and marketing insurance policies in Kuwait through an agency.
b. The financial statements were approved by the Board of Directors on February 5 2009 subject to the approval of the General Assembly of Shareholder.
2. Accounting Policiesa. Basis of Preparation of the Financial StatementsThe attached financial statements have been prepared in accordance with the forms determined by the Insurance Regulatory Commission.
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and related interpretations at December 31, 2004 and accounting policies adopted in the last audited financial statements.
- The International Financial Reporting Standards Board (IFRSB) issued amendments to the accounting standards and new international financial standards, which have become valid effective from January 1, 2005 and issued amendments to the accounting standards and new international financial standards which have become valid effective from January 1, 2006/2007. They had not been applied until the date of the accompanying financial statements, and the financial effect from their application has not been determined yet pending the update of regulations of the regulatory authorities in this respect.
The accompanying financial statements are stated in Jordanian Dinars.
b. Basis of Consolidation of Financial Statements:The financial statements include the financial statements of the Company and its foreign branches. Moreover, intercom balances are eliminated.
c. Revenues, Expenses and Transactions RecognitionInsurance premiums are recognized according to the accrual basis. All commissions and other acquisition costs for new or renewed insurance policies are taken to the statement of income when incurred. All other revenues and expenses are accounted for according to the accrual basis. Cash dividends are recorded as revenue when declared and ratified by the General Assembly. Financial assets acquisition and disposal are recognized at the settlement date.
d. Reinsurance AccountsReinsurers shares of insurance premiums, paid claims,
technical provisions, and all other rights and obligations resulting from reinsurance based on contracts concluded between the company and reinsurers are accounted for according to the accrual basis.
e. Technical ProvisionsTechnical provisions are taken and maintained according to the regulations of the Insurance Regulatory Commission as follows:
1. The provision for unearned premiums for general insurance activities is calculated according to the remaining days up to the expiry date of the insurance policy on the basis of a 365-day year except for marine and land transport insurance for which the provision is calculated on the basis of underwritten premiums of valid documents at the date of the financial statements.
2. The provision for reported claims is computed by determining the total expected costs for each claim on an individual basis.
3. Additional provisions for unreported claims and catastrophic risks are calculated based on the company's experience and estimates.
4. Mathematical reserves of life insurance policies are calculated according to actuarial formulae that are periodically reviewed by an actuary.
5. Additional technical reserves are taken against any claims that may arise against the company.
f. Financial Assets Held for TradingFinancial assets held for trading are initially recognized at cost and remeasured at fair value at the date of the financial statements. Gains or losses resulting from these are taken to the statement of income when incurred.
g. Available-for-Sale Financial AssetsAvailable-for-sale financial assets are initially recognized at cost and remeasured at their fair value at the date of the financial statements. Gains or losses resulting there from are taken to shareholders’ equity. If the assets are sold, in whole or in part, or determined to be impaired, the cumulative gain or loss previously recognized in equity is included in the statement of income for the period.
h. Held-to-Maturity InvestmentsHeld-to-maturity investments, which the company intends to hold up to the maturity date, are stated at cost. Premium or
“These statements are selective extracts from the English Financial Statement and should be read together with it.”
Notes To Financial Statements
3232
discount (if any) is amortized according to the effective interest rate method by taking it to interest. Any provisions resulting from the impairment in the value of these investments leading to the recoverability of the investment or part there from are deducted.
i. Property Investments Property investments are stated at cost net of accumulated depreciation (except for lands). Moreover, depreciation is calculated on their productive lives. When the recoverable amount of the property is less than its carrying amount, the carrying amount of the property is reduced to its recoverable amount, and the impairment loss is taken to the statement of income.
j. Fixed AssetsFixed assets are stated at cost and depreciated (except for lands) according to the straight-line method at annual rates ranging from 10% to 20%.
k. Impairment of Fixed AssetsWhen the recoverable amount of a fixed asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount, and the impairment loss is taken to the statement of income.
l. Provision for Doubtful DebtsA provision for doubtful debts is taken when it becomes evident to management that these debts cannot be recovered in part or in full. The provision is calculated on the basis of the difference between the book value and recoverable value.
m. Provision for Income TaxA provision for income tax is taken on the basis of the expected tax liabilities estimated according to the regulations in force. The company’s accrued income tax differences (if any) are taken to the statement of income when paid after final settlement has been reached with the Income Tax Department.
- Deferred tax assets are taxes expected to be paid or recovered due to temporary timing differences between the value of assets or liabilities in the financial statements and the value on the basis of which tax profit is calculated. Taxes are calculated on the basis of the tax liability method in the balance sheet. Additionally, taxes are calculated, and deferred tax assets are recognized. - The balance of deferred tax assets or liabilities reviewed at the date of the financial statements. Moreover, it is reduced in case it is expected that these tax assets will not be utilized wholly or partially, tax liabilities are settled, or the related need no longer exists.
n. Provision for Staff End-of-Service IndemnityAnnual compensations paid to employees who leave office are taken to the provision for End-of-service indemnity when paid. Moreover, a provision is taken for the liabilities existing at the date of the financial statements.
o. Foreign Currency TransactionsTransactions in foreign currencies are recorded at the exchange rates of the Jordanian Dinar prevailing at the transaction date. Assets and liabilities denominated in foreign currencies are translated to Jordanian Dinar according to the average selling and buying exchange rates at the date of the financial statements. Exchange gains or losses resulting there from are taken to the statement of income.
p. Allocated General and Administrative Expenses 85% of the general and administrative expenses of the Head Office (including life) have been allocated to the various insurance departments on the basis of the earned premiums of each department in proportion to total premiums.
q. Intangible AssetsIntangible assets are recorded at cost upon acquisition, and are amortized over five years.
r. Fair ValueThe fair value of listed financial assets is based on its quoted closing price in the Amman Stock Exchange at the date of the financial statements. In case there is no quoted closing price for a financial asset, fair value is estimated by one of the following methods:- Comparing it to another financial asset with similar terms and conditions.- Using any other acceptable method.
s- Estimates:Preparation of the financial statements and application of the accounting policies require the company’s management to perform estimates and judgments that affect the amounts of the financial assets and liabilities, and disclosures relating to contingent liabilities.
These estimates and judgements also affect revenues, expenses, provisions and changes in the fair value, shown within shareholder's equity.
In particular, management is required to issue significant judgments to assess future cash flows and their timing. The above –mentioned estimates are based on several assumptions and factors with varying degrees of estimation and uncertainty. Moreover, the actual results may differ from the estimates due to charges resulting from the circumstances and situations of those estimates in the future.
Management believes that estimates within the financial statements are reasonable and their details are as follows:
Provision for accounts receivable is made according to various assumptions and bases adopted by management to evaluate the required provision according to the International Financial Reporting Standards.
The financial year is charged with its part from income tax according to the regulations and laws.
Management revaluates the productive lives of tangible assets periodically for the purposes of calculating annual depreciation based on the general condition of those assets and the estimates of their expected productive lives in the future. Any impairment loss is taken to the statement of income.
- The outstanding claims provision and technical provisions are taken based on technical studies according to the instructions of the Insurance Regulatory Commission. Moreover, the mathematical reserve is taken based on actuarial studies.
Provision for lawsuits against the company is based on a legal study conducted by the company's lawyer according to which probable in future risks are determined. Review of such studies is performed periodically.
Management reviews the financial assets, shown at cost, to evaluate any impairment in their value. Such impairment is taken to the statement of income.
“These statements are selective extracts from the English Financial Statement and should be read together with it.”
Notes To Financial Statements
3333 “These statements are selective extracts from the English Financial Statement and should be read together with it.”
3. Deposits at Banks:-
4. Trading Investments:-
Description
Share Listed on Amman Stock Exchange (ASE)
Total
638,475
638,475
538,587
538,587
31 December 2009 2008JD JD
6. Investments Held to Maturity:-
Description
Listed bonds in the financial market
Total
1,272,439
1,272,439
1,000,000
1,000,000
31 December 2009 2008JD JD
7. Property Investments - Net:-
Description
Lands
Buildings-net
Total
2,935,4403,114,1126,049,552
8,821,949 3,281,728
12,103,677
31 December 2009 2008JD JD
5. Investments Available for Sale:-
Description
Inside Jordan
Shares
Total Inside JordanOutside Jordan
Shares
Total Outside Jordan
Total
13,067,43313,067,433
13,326,61913,326,619
26,394,052
16,331,895 16,331,895
20,180,73320,180,733
36,512,628
31 December 2009 2008JD JD
31 December 2009 31/12/2008
5,843,1164,463,141
10,306,257
1,167,4402,068,5133,235,953
599,7321,110,0001,709,732
567,708958,513
1,526,221
JD JDJD JDTotal Total
Deposits due from 3-12 months
Deposit due in three months
Description
Inside Jordan
Outside Jordan
Total
Notes To Financial Statements
3434“These statements are selective extracts from the English Financial Statement and should be read together with it.”
8. Loans and Advances of the Life Department:-
Description
Loans for policy - holders less than surrender value
Total70,34070,340
77,867 77,867
31 December 2009 2008JD JD
9. Cash on Hand and at Banks:-
Description
Cash on hand
Cash at banks (Current Accounts)
Total
53,362 2,571,715 2,625,077
31 December 2009 2008JD JD
10. Checks Under Collection and Notes Receivable:-
Description
Notes receivable
Checks under collection
Total
35,535979,583
1,015,118
31 December 2009 2008JD JD
11. Accounts Receivable -Net:-
Description
Policy - holders
Agents
Employees
Others
Deduct: provision for doubtful debts
Total
7,168,192 553,300 122,535
2,625,445 (1,060,396)9,409,076
31 December 2009 2008JD JD
12. Insurance Companies Accounts:-
Description
Local insurance companies
Foreign reinsurance companies
Deduct: provision for doubtful debts
Total
1,197,632 773,125 (34,000)
1,936,757
70,276 2,256,554 2,326,830
31,535 913,059 944,594
7,621,986 695,491 102,671
1,585,013 (1,226,835)
8,767,055
2,199,975 1,108,974
(34,000)3,274,949
31 December 2009 2008JD JD
Notes To Financial Statements
3535 “These statements are selective extracts from the English Financial Statement and should be read together with it.”
13. Income Taxa. Income Tax Provision:-
b. Assets / Liabilities Deferred Tax:-
14. Fixed Assets - Net:-
Description
Beginning balance
Income tax paid
Provision for income tax
Ending Balance
1,212,330 (693,165)1,050,000 1,569,165
1,569,165 (1,605,699)
1,041,000 1,004,466
31 December 2009 2008JD JD
15. Other Assets :-
Description
Refundable deposits
Prepaid expenses
Accrued revenues
Others
Total
574,665 51,372 36,000
278,742 940,779
610,155135,116
38,950363,136
1,147,357
31 December 2009 2008JD JD
511,113 378,600 388,640
37,282 1,315,635
- 86,453
540,846 136,589 763,888
511,113 465,053 929,486 173,871
2,079,523
511,113373,849317,158
29,2421,231,362
-94,524
661,568144,629900,721
511,133468,373978,726173,871
2,132,083
JD JDJD
AccumulatedDepreciationCost
Net BookValue
JD JDJD
AccumulatedDepreciationCost
Net BookValue
Description
Lands
Buildings
Equipment, machinery & furniture
Vehicles
Total
31 December20082009
31/12/2009
JD JDJDJD
Deferred TaxAdjustments
EndingBalance
BeginningBalance
DescriptionAssets Deferred TaxDoubtful debts provision
Provision for staff end-of-service indemnity
Technical provision
IBNR provision
TotalLiabilities Deferred TaxAvailable for sale investments net profit
(Outside Jordan)
31/12/2008Deferred
Tax
173,711 5,843
63,750 -
243,304
-
190,762 3,833
96,000 80,433
371,028
51,341
794,843 15,972
400,000 335,137
1,545,952
213,921
100,000 (4,972)
145,000 335,137 575,165
213,921
JD
694,843 20,944
255,000 -
970,787
-
Notes To Financial Statements
3636“These statements are selective extracts from the English Financial Statement and should be read together with it.”
16. Accumulated Mathematical Reserve - Net:-
Description
Company's share from mathematical reserve
Retained earnings - additional
Total
31 December 2009 2008JD JD
17. Accounts Payable:-
Description
Agents
Others
Total
31 December 2009 2008JD JD
18. Insurance Companies Accounts:-
Description
Local insurance companies
Foreign reinsurance companies
Total
31 December 2009 2008JD JD
19. Other Provisions:-
Description
Provision for staff end-of-service indemnity
Scientific research and vocational training provision
Universities fees provision
Provision for vocational and technical training fund
Annual leaves provision
Provision for group life policies profit commission
Provision for accrued policies matured
Insurance regulatory commission fees provision
Total
31 December 2009 2008JD JD
1,469,802 40,000
1,509,802
1,378,588 40,000
1,418,588
131,703
737,954
869,657
134,233
2,455,795
2,590,028
1,122,356
2,726,519
3,848,875
1,281,129
2,751,755
4,032,884
482,463
75,673
84,650
86,522
3,278
23,220
20,637
8,808
785,251
535,176
24,005
23,908
23,908
3,278
-
20,637
5,129
636,041
Notes To Financial Statements
3737 “These statements are selective extracts from the English Financial Statement and should be read together with it.”
20. Other Liabilities:-
Description
Accrued expenses
Unearned revenues
Board of Directors remunerations
The Ministry of Finance deposits
Premiums in advance
Car parking deposits
Life policies deposits
Other deposits
Total
75,810 365,385
55,000 929
2,366 1,393
54,898 5,680
561,461
91,374 402,143
55,000 461
3,257 9,479
96,962 5,680
664,356
31 December
2009 2008
JD JD
21. Cumulative Changes In Fair Value:-
Description
Beginning balance
Change in fair value
Net realized gains
Net change in fair value
Impairment loss in fair value
Ending balance
31 December
2009 2008
JD JD
22. Interest Revenue:-
Description
Bank interest
Investment held to maturity interest
Loans interest
TotalAmount transferred to underwriting accounts / Life Dep
Amount transferred to statement of income
Total
1,526,266 (1,896,320)(1,619,000)(3,515,320)
- (1,989,054)
(1,989,054) 7,308,362 (187,763)
7,120,590 1,129,028 6,260,573
292,510111,090
156403,756209,858193,898403,756
359,874 100,639
1,848 462,361 211,367 250,994 462,361
31 December
2009 2008
JD JD
Notes To Financial Statements
3838“These statements are selective extracts from the English Financial Statement and should be read together with it.”
23. Income from Financial Assets and Investments - Net:-
Description
Dividends received
Gain from the sale of trading investments - net
Change in the fair value of trading investments
Gain from the sale of investments available for sale - net
Real estate investment returns
Rental income - net
Total
31 December
2009 2008
JD JD
25. Employee Expenses:-
Description
Salaries & bonuses
Provident fund
End-of-service indemnity
Company contributions to social security
Medical expenses
Employee training & developments
Travel & transportation
TotalAllocated Employee Expenses - General InsuranceUnallocated Employee ExpensesTotal
31 December
2009 2008
JD JD
24. Other Revenues:-
Description
Foreign exchange differences
Other
Total
708,196 4,192,248 (293,725)
1,619,000 51,756
305,444 6,582,919
891,348 -
178,215 187,763
1,045 337,599
1,595,970
2,767,282 133,116
12,847 182,648 160,255
8,360 205,710
3,470,219 2,924,252
545,967 3,470,219
3,065,080 149,320
- 219,409 165,946
49,566 189,262
3,838,583 3,190,254648,329
3,838,583
(28,307)600,693 572,386
182,208 629,896 812,104
31 December
2009 2008
JD JD
Notes To Financial Statements
3939 “These statements are selective extracts from the English Financial Statement and should be read together with it.”
26. Administrative and General Expenses:-
Description
Rents
Stationary & publications
Advertisements
Bank interest
Electricity, heating and water
Repairs
Post & telecommunication
National agent commission / outside Jordan
Professional fees
Hospitality
Lawyer fees & expenses
Revolution expenses
Computer maintenance
Computer program licenses
Computer program service
Subscriptions
Board members transportation fees
Tenders expenses
Legal fees & expenses
Donations
Insurance expenses
Marketing expenses
Discount allowed & bad debts expenses
Others
TotalAllocated General and Administrative Expenses-General InsuranceUnallocated General and Administrative ExpensesTotal
31 December
2009 2008
JD JD
27. Earnings Per Share:-
Description
Net income for the year after tax and fees
Weighted average of stocks
Earnings per share for the year
31 December
2009 2008
JD JD
28. Cash & Cash Equivalent:-
Description
Cash on hand
Deposit due in three month
Cash at banks (current account )
Total
48,719 83,440 49,530
4,283 54,425 15,036
146,806 40,700 43,818
109,523 29,280
1,100 17,153 65,489 34,607 24,383 52,800 23,525 62,844 68,994 27,416
239,535 24,019
160,551 1,427,976 1,207,219
220,757 1,427,976
8,460,011 30,000,000
28%
53,3628,518,4152,571,715
11,143,492
52,988 67,720 52,462 68,570 43,061 18,690
144,184 40,700 41,020 78,811 46,016 10,440 13,636 41,919 48,019 70,414 72,600 21,135 73,783
102,801 31,004
224,845 70,978
156,092 1,591,888 1,332,253
259,635 1,591,888
3,006,339 30,000,000
10%
70,276 1,526,221 2,256,554 3,853,051
31 December
2009 2008
JD JD
Board of Directors
Audit Committee
Legal Consultant
Internal Auditor
General Manager
DGM Technical
operation & branches
DGM
Financial & administrative
IT
AGM
Marine
Fire and General
Accidents
Reinsurance
Regional
branches
Business
Development
Motors /
production
Account
Credit control
DGM
Life & Medical
Medical
insurance
Life
insurance
Account
Shareholders
Human
Resources
Legal Affairs
Investments
Motor / claims
Marketing
AGM
Production & Marketing
Productions
SalesTravel
insurance
Personal
accidents