Arab Re Annual Report · Mr. Mohamed Hammoud Mr. Mohammad Naji Ahmed Manager Technical Ms. Basma Barakat Technical Mr. Ibrahim Yassin Internal Audit. ... However, premium growth will

Dear Shareholders,

It gives me great pleasure to present to the Shareholders of Arab Reinsurance Company (Arab Re) a report on the company’s activities and achievements, along with

its financial statement, during the year ended on December 31, 2010. In this report, we will be dwelling on the most important financial, technical, and

administrative developments that have taken place during the reporting period.

The Company worked throughout the year faced with a challenging economical environment, coupled with newly imposed strict financial controls, as a result of the

international economy financial crisis of 2008.

As you are all aware, end of 2010 marked the start of the political movement in a number of Arab countries which in turn impacted their economy, as well as the

economy of other Arab countries. God willing, we expect the direct effect of these events, on Arab Re’s book of business, to be limited; especially since the

income arising from these countries does not exceed 20% of the Company’s total portfolio. As for Arab Re’s share of these losses; we do not expect them to

make a large dent in its results, in view of the company's adequate retrocession programs, which will efficiently reduce their impact on the Company's net

results.

Ultimately, our main concern and wish is for these disturbances to end soon, to the benefit of the Arab region.

In this respect, we would like to illuminate the following:

1. The Company developed its accounting standards by starting to adopt the International Reporting Financial Standards (IRFS4) phase II which is due for

implementation in the upcoming three years. These standards demand a high level of analysis and accurate estimations. A high level expertise team in the

company was able to successfully complete this task, in coordination with the Company’s external and independent auditor. Having said that, the Company is

now in a position to assist other Arab insurance companies in similar implementation, if needed; placing them in the same league as the international players.

2. The Company’s portfolio is split between Arab and Non-Arab business and management continues to follow the directives set by the Board of Directors in

cancelling all technically losing businesses and increasing its shares in more lucrative ones from all regions. Even if this action led to a temporary decline in

the written premium, it is positively reflected in the Company’s net income, which amounted to USD6.8 million. The Company will make up for this drop in

the near future in terms of quantity and quality of business.

As for the Company’s future expansion plans, the Company’s management has undergone in-depth studies to place the pillars needed to write new more

lucrative lines of business in other branches of insurance. The above plan will be implemented together with a more intensive marketing program, higher

visibility in international insurance conferences, and the hosting of Arab Re’s own specialized workshops.

3. The Company’s executive management, under the guidance of the Board of Directors, maintained its ambitious investment policy, which is based on a

deliberately diversified investment portfolio spread geographically. This enabled it to record a rewarding investment return with a rate of 6.7% despite the

unfavorable investment environment, the global decrease of interest rates, and tough regulations enforced on main international markets.

The Company’s management gave special attention to its investment activities, and supported the division by supplying it with the appropriate human skills

and by organizing constructive workshops and specialized technical seminars. In addition to the allocation of additional investment funds that will come

through the resolutions of the Board of Directors to increase the Company’s paid-up capital gradually to reach USD 100 million in the next few years, which

will reinforce the management’s productive and competitive ability while enabling it to invest in schemes with higher returns

Letter From The Chairman

4. During the preceding period, the Company’s main heading was to invest in its human resources. This will continue with special attention given to the training

and development of the staff and the participation in specialized seminars. The Company is also implementing the human resource plan, set by an international

consultancy firm which consists of upgrading the job descriptions, work procedure manual, and restructuring of the Company. It will continue to recruit young

skilled personnel, from various scientific and technical backgrounds, as well as capable specialized managers, which started with the appointment of a general

manager as of May 1, 2010 known for his competence and experience in the insurance and reinsurance industry as well as the actuarial field.

On this occasion, we are pleased to announce the launching of the Company’s updated website www.arabre.com, in cooperation and coordination between our

internal team and a specialized new Media agency. The said site will be an open portal to constantly provide efficient information and eventually the technical

mechanisms needed to perform transactions and communicate via this gateway.

In addition, the Company is proceeding with the publication of a periodical E-Newsletter that will address essential topics and include useful scientific research.

This will be prepared, as a joint effort, by the Company’s employees. The said newsletter will be an integral part of the above website which will help in placing

the Company within the same rank of other regional and international companies.

The follow-up and effort of the audit committee, the formation of a Risk Management committee during the year, the commitment of the internal audit section

to the resolutions of the Board of Directors, as well as the programmed development of the 3-years IT plan, constitute an effective contribution in the

achievement and the developments of all the above-mentioned.

5. The Company has maintained its previous AM Best rating of B+ (Good) with a Positive Outlook. This is a positive indicator, especially given the sovereign

rating of Lebanon and its effect on the rating of companies registered there. The above did not deter the executive management from making extraordinary

efforts in improving the Company’s performance on all levels: technical, financial, and administrative. As for the Board of Directors, it continued its support

and guidance by keeping up with the Company’s effort and recommending the increase in capital.

I would like to ascertain that the full coordination between the Board of Directors and the executive management, as well as the continuous support of our

Shareholders, are the main elements that made the Company’s expansion possible while securing its solvency by its increased equity.

Based on the above-mentioned constructive and successful progresses, and confirmed by the enclosed financial statements, our trust in the Company’s bright future is

increasing day after day. We highly appreciate the confidence bestowed on us by our clients, and your good-selves, as well as the dear trust and constant

support of our board’s actions. All of this would not have been possible if it wasn’t for our employees’ hard work, loyalty, and beliefs in successfully realizing

the Company’s goals

Letter From The Chairman

Peace be upon you and God bless.

Khaldoun Bakri Barakat

Chairman of the Board

http://www.arabre.com/





Board of Directors

Vice Chairman

Member

Member

Member

Member

Member

Member

Member

Chairman

Management

Sheikh Khaldoun Barakat

Chairman

Mr. Tannous Feghali

Vice-Chairman

Mr. Salim Kojok Mr. Robert IraniMr. Zouhair Daoud

Assistant General Manager

(Administration)


(Finance)


(Investment)

Mr. Ronald Chidiac

General Manager

Management

Heads of Departments

Managers

Arab Reinsurance Pool

Mr. Mohamed HammoudMr. Mohammad Naji Ahmed

Manager

Technical

Ms. Basma Barakat

Technical

Mr. Ibrahim Yassin

Internal Audit

For the Financial Year Ended December 31,2010

Report of the Board of Directors

Dear Shareholders,

The Board of Directors of Arab Reinsurance Company is pleased to submit to you its Annual Report for the period ending December 31, 2010; where you can find details on technical,

financial, investment, and administrative achievements. Also attached are the financials encompassing the balance sheet, the income statement, the statement of changes in equity, and

the cash flow statement; together with a summary of the significant accounting policies retained and other explanatory notes.

The report and statements were prepared in accordance with the International Financial Reporting Standards (IFRS), which are in line with the requirements of the international rating

agencies, and which will be adopted within the next three years.

Our Company is a pioneer in the region in implementing these accounting standards for the 2010 financial year. In order to apply such standards, our team went through a rigorous

process with comprehensive analysis and accurate estimations. Needless to say that it gained extensive experience in this field, and as such, it could provide advice and technical

assistance to Arab insurance and reinsurance companies for the coming period. We have to thank our independent auditor for having actively assisted us in this endeavor.

On this occasion, we would like to clarify that the financial statements based on the new accounting standards have to be restated for 2009 and 2008 accordingly. Therefore, financial

statements related to 2010 will be taken as the year of reference when comparing statements of 2011 as at 31 December of this year, and subsequent years when adopting the

international standards.

The Company continued to achieve positive results, with a net profit of USD 6.8 million. Such results were achieved despite the economical slow-down and tough regulations enforced

on main international markets in order to address the implications of the financial crisis that hit the global economy two years ago, and hence prevent a similar situation to occur in the

future. The Company’s conservative investment policy contributed mainly in achieving our financial return; assets diversification and geographical distribution having protected us

from the negative impact of the financial crisis. The Company achieved an investment return of 6.7%, which represent a target that most companies would hardly achieve during these

difficult economic conditions.

We should also pinpoint that other factors contributed in achieving such good result, the most important one being the active role held by the management while implementing the

Board of Directors directives in terminating losing business, even though such measure will be lowering our premiums for 2010. However, premium growth will resume rapidly with

the efforts deployed by the executive management through intensive marketing visits to the Arab markets and some foreign markets as well.

While continuing referring to marketing, we are pleased to announce that the Company’s website www.arabre.com was launched, in cooperation and coordination between a team

from within the Company and a company specialized in New Media. The said team will continue working on the site while providing the latest information about our Company as well

as important insurance news; which may generate some additional business.

Moreover, the Company started working on the publication of a periodical E-Newsletter which will be considered as a communication tool for the Company’s employees to share their

views on scientific/technical and social responsibility issues. The said newsletter is to be considered as one main component of our website, positioning the Company alongside

renowned global companies.

In 2010, our Company maintained its AM Best rating of B+ (Good) Positive Outlook. This is a positive indicator as rating agencies hardly provide a rating that exceeds the Lebanese

State sovereign rating. This did not deter the executive management to make substantial efforts to improve the Company’s performance on technical, financial, and administrative

levels. Such achievements couldn’t be reached without the Board of Directors continuous support, which persists as it has recently provided recommendations to increase the

Company’s capital to USD 100 million, in stages, over a few years period. It is without any doubt that this capital increase will better position the Company to generate more business,

while providing funds that will offering access to more investment opportunities, as well as hoisting of our rating if God wills.

The Company’s executive management achieved the plan approved by the Board of Directors, which relates to the development of human resources. In this respect, a contract was

signed with leading institutions in the training field and the mission started according to a pre-planned agenda. In parallel, the executive management continued recruiting the needed

expertise across all departments.

Finally, we would like to express to our clients and to our Shareholders, our sincere thanks and appreciation for their support and cooperation. We shall also take this opportunity to

thank our staff on their determination and admirable performance. May God bless our efforts, and we hope that you will find our audited financial statements, relating to our

Company’s results for the year ended on December 31, 2010, compared to 2009 and 2008 after the required modifications pursuant to the International Financial Reporting Standards,

to be satisfactory.

Board of Directors








1) Underwriting Activities

a) Earned PremiumEarned premiums during 2010 reached USD 57 million compared to USD 61 million for the previous fiscal year.

The earned premiums from the Arab region reached 78% of the total gross premium.

The following table shows the premium for each class of business in 2010 compared to the previous fiscal year :

Currency: US Dollars

2010 2009

Earned Premium Distribution

Branch 2010 Branch % 2009 Branch % Increase %

Fire 23.310.578 40.9 22.108.062 36.4 5.4

Accidents 14.122.199 24.8 15.413.527 25.3 (8.4)

Engineering 9.933.028 17.4 12.737.254 20.9 (22.0)

Total Non-Marine 47.365.805 83 50.258.843 83 (5.8)

Cargo 6.185.652 10.9 6.737.955 11.1 (8.2)

Hull 3.321.818 5.8 3.613.760 5.9 (8.1)

Aviation 43.092 0.1 60.668 0.1 (29.0)

Total Marine 9.550.562 17 10.412.383 17 (8.3)

Life 41.688 0.1 132.353 0.2 (68.5)

Total Gross Earned Premium 56.958.055 100 60.803.579 100



b) Retained Premiums

The Company retains various percentages of its acceptances in the various reinsurance classes. This retention is protected by

appropriate Excess of Loss covers. Retained premiums in all classes during the period under consideration amounted to USD 45

million, representing 79% of the Gross earned global premiums, compared to USD 46 million in the previous year which

represented 76% of the Gross earned premium. The increase in the retention’s percentage this year is due to the Company’s policy

in increasing the retention in some classes, while continuing to re-visit the adequacy of its excess of loss covers in relation to

specific losses as well as catastrophic events.

c) Commissions & Acquisition Costs

This section includes original commissions paid to ceding companies, reinsurer brokers, profit commission, and other costs relating

to reinsurance activities. The total amount paid during the period under review amounted to USD 15 million, compared to USD 17

million in the previous year. The percentage of acquisition costs this year was equivalent to 27% of GPI, compared to the same rate

in the previous year. Such level was maintained due to the inward’s business results and increase acceptance of non-proportional

covers, which are characterized by lower commissions.

d) Incurred losses

The total incurred losses during the year under consideration amounted to USD 43 million compared to USD 44 million in the

previous year, representing a minor decrease of 1%. Loss Ratio stands at 76% for 2010 compared to 72% for previous year, which

is due to the increase in the Company’s technical reserves.

The Company’s retention (net of our retrocessionnaires’ share) of paid claims was 68% this year compared to 78% for the previous

year. This difference is explained by the fact that several major losses where settled during the previous year, thus contributing in

the increase of claims paid by our retrocessionnaires.

e) Net of Technical Results

Net Technical results at the end of year 2010 reached 94% compared to 104% in the previous year, which confirms the

improvement of our results due to our underwriting strategy and the reduction of the number of claims during this year.



2) Investments

Invested funds during this year amounted on average to USD 113 million including the increase of the paid-up capital from USD 50

million to USD 60 million. The return on investment amounted at USD 7.5 million by the end of this year, with a rate of return

standing at 6.7% compared to USD 6.9 million and a rate of 6.1% for the previous year.

Moreover, the return on investment exceeded the budgeted amount of USD 7 million for 2010, despite the economical difficulties, the

decrease of the international interest rates, as well as our upheld policy to prompt claim payments, which remains our signature. We

outperformed our budget mainly due to the good choice of our investments in nature and geographic distribution.

It shall be noted that the invested funds include cash at banks, term deposits in banks, and financial institutions non residents, in

addition to investments in securities and fixed assets.

It is worth mentioning that technical provisions amounted to 40% of the global invested funds.

3) General and Administrative Expenses

The General and Administrative expenses amounted this year to USD 3.4 million representing 6% of the gross earned premiums,

against USD 3 million thus representing an increase of 13%; which is quite logical given the increase in our operational costs and our

workforce.

4) Results of the Financial Year

The Board of Directors, in its meeting held on March 22, 2011, decided to distribute the net income of the financial year ended

December 31, 2010, subject to the approval of the General Assembly of the Company’s Shareholders, as follows :

Net income for the year 6,766,207

Proposed allotment:

- Transfer to capital reserve at 10% 676,620

- Distribution of dividends at 5% of paid up capital as at December 31, 2010 as a

first payment according to Company’s by-laws3,000,000

- Distribution of dividends at 5% of paid up capital as at December 31, 2010 as an

additional payment3,000,000

Total proposed allotments 6,676,620

Net balance after proposed allotments to be transferred to the retained earnings

accounts89,587

Currency: US Dollars



The allotments of net income, except for the transfer to capital reserve, are subject to the approval of the General Assembly of the

Company’s Shareholders, which will be held to approve the financial statements for the year ended December 31, 2010.

According to Article 60 of the Company’s bylaws, 10% of the annual net income should be transferred to capital reserve until the

total of this reserve becomes equal to the Company’s capital. This reserve includes the legal reserve required according to Article

165 of the Lebanese Code of Commerce. This reserve is not available for distribution to Shareholders.

Annual Growth of Company's Profit

2006 2007 2008 2009 2010

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

(restated)

Report on the financial statements

We have audited the accompanying financial statements of Arab Reinsurance Company S.AL. which comprise the statement of financial

position as of 31 December 2010 and the statement of comprehensive income, statement of changes in equity and cash flow statement for

the year then ended and a summary of significant accounting policies and other explanatory notes.

Management's responsibility for the financial statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with the International

Financial Reporting Standards (IFRS), and for such internal control as management determines necessary to enable the preparation of

financial statements that are free from material misstatement, whether due to fraud or error.

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 entity'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 entity'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 accompanying financial statements present fairly, in all material respects, the financial position of Arab Reinsurance

Company S.A.L. as of 31 December 2010 and its financial performance and its cash flows for the year then ended in accordance with

International Financial Reporting Standards.

Beirut, Lebanon

13 May 2011

Independent Auditor’s Report

Statement of Financial PositionArab Reinsurance Company SAL (Inter-Arab Company)S

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2010 2009 2008

Notes US$ US$ US$

(Restated) (Restated)

ASSETS

Property and equipment 5 2,972,456 3,110,040 2,939,686

Investment property 6 581,566 589,583 597,600

Deferred acquisition cost 23 7,569,091 8,292,955 10,100,630

Financial assets held to maturity 7 54,433,736 44,435,600 40,748,847

Available for sale financial assets 8 8,353,949 13,441,510 15,978,235

Insurance receivables 9 57,925,202 57,598,422 60,516,997

Reinsurance assets 16 20,958,038 19,532,009 28,447,873

Bank deposits with original maturity of more than 3 months 10 56,647,545 52,953,147 59,122,303

Cash and cash equivalents 11 2,674,641 2,983,232 1,416,259

TOTAL ASSETS 212,116,224 202,936,498 219,868,430

EQUITY AND LIABILITIES

Equity

Capital 13 60,000,000 50,000,000 50,000,000

General reserves 4,500,000 4,500,000 4,500,000

Legal reserves 14 9,620,289 9,154,216 8,200,591

Fair value reserve 12 (185,029) (83,813) 1,047,016

Retained earnings 12,051,561 10,751,427 14,500,590

Total shareholders' equity 85,986,821 74,321,830 78,248,197

Liabilities

Insurance contract 16 104,776,823 105,340,474 118,000,287

Unearned reinsurance commission 21 1,916,867 2,782,195 3,417,388

Retirement benefit obligation 17 185,049 126,977 165,319

Accounts payable 17 19,163,664 20,305,022 19,944,239

Income tax provision 27 87,000 60,000 93,000

Total liabilities 126,129,403 128,614,668 141,620,233

TOTAL EQUITY AND LIABILITIES 212,116,224 202,936,498 219,868,430

The financial statements were authorized for issue in accordance with the board of directors resolution on 22 March 2011. The board elected the

Chairman and the Vice chairman to sign the financial statements

Statement of Comprehensive Income Arab Reinsurance Company SAL (Inter-Arab Company)

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2010 2009

Notes US$ US$

Insurance premium revenue 19 56,958,055 60,803,579

Insurance premium ceded to reinsurers 19 (12,136,891) (14,735,878)

Net insurance premium revenue 44,821,164 46,067,701

Investment income 20 7,515,741 6,898,705

Reinsurance commission income and profit sharing 21 3,438,468 4,321,995

Other operating income 26 54,299 581,944

Net income 55,829,672 57,870,345

Insurance claims and loss adjustment expenses 22 (43,056,125) (43,619,404)

Insurance claims and loss adjustment expenses recovered from

reinsurers

22 12,683,213 7,578,622

Net insurance claims (30,372,912) (36,040,782)

Expenses for acquisition of insurance contracts 23 (15,133,461) (16,533,857)

Expenses for administration and other expenses 24 (3,434,222) (2,978,327)

Expenses (48,940,595) (55,552,966)

Profit before tax 6,889,077 2,317,379

Income tax 27 (122,870) (112,917)

Profit for the year 6,766,207 2,204,462

Other comprehensive income for the year

Change in fair value reserve of available for sale financial

assets

(101,216) (1,130,829)

Total comprehensive income for the year 6,664,991 1,073,633

Statement of Changes in EquityArab Reinsurance Company SAL (Inter-Arab Company)

Year Ended December 31, 2010

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Share General Legal Fair value Retained

Capital reserve reserve reserve earnings Total

US$ US$ US$ US$ US$ US$

Balance at 1 January 2009 - as reported 50,000,000 4,500,000 8,200,591 (832,384) 14,650,428 76,518,635

Effect of restatement of the financial statements (note 30) - - - - 1,729,562 1,729,562

Effect of restatement of the fair value reserve - - - 1,879,400 (1,879,400) -

Balance at 1 January 2009 - restated 50,000,000 4,500,000 8,200,591 1,047,016 14,500,590 78,248,197

Profit for the year (restated) - - - - 2,204,462 2,204,462

Dividends distributed (note 15) - - - - (5,000,000) (5,000,000)

Transfers to legal reserves (note 14) - - 953,625 - (953,625) -

Change in value reserves for available for sale financial assets - - - (1,130,829) - (1,130,829)

Balance at 31 December 2009 50,000,000 4,500,000 9,154,216 (83,813) 10,751,427 74,321,830

Profit for the year - - - - 6,766,207 6,766,207

Transfers to legal reserves (note 14) - - 466,073 - (466,073) -

Increase in capital (note13) 10,000,000 - - - - 10,000,000

Change in fair value reserves for available for sale financial

assets

- - - (101,216) - (101,216)

Dividends distributed (note 15) - - - - (5,000,000) (5,000,000)

Balance at 31 December 2010 60,000,000 4,500,000 9,620,289 (185,029) 12,051,561 85,986,821

Statement of Cash FlowsArab Reinsurance Company SAL (Inter-Arab Company)

Year Ended December 31

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2010 2009

Notes US$ US$

Cash flows from operating activities

Net cash used in operating activities 29 (3,830,679) (3,745,905)

Cash flows from investing activities

Purchase of available for sale financial assets 8 (308,165) (3,090,622)

Purchase of financial assets held to maturity 7 (10,279,905) (6,707,513)

(Increase) decrease in bank deposits with original maturity

of more than 3 months (3,694,398) 6,169,156

Purchase of property and equipment 5 (10,576) (309,682)

Proceeds from sale of property and equipment - 832

Interest received 6,752,635 7,154,016

Income from sale of available for sale financial assets 5,562,497 4,047,892

Maturity of financial assets held to maturity 500,000 3,048,800

Net cash (used in) provided from investing activities (1,477,912) 10,312,879

Cash flows from financing activities

Dividends paid (5,000,000) (5,000,000)

Increase in capital 10,000,000 -

Net cash provided from (used in) operating activities 5,000,000 (5,000,000)

Net (decrease) increase in cash and cash equivalents (308,591) 1,566,974

Cash and cash equivalents at beginning of year 2,983,232 1,416,258

Cash and cash equivalents at end of year 11 2,674,641 2,983,232

Notes To The Financial StatementsArab Reinsurance Company SAL (Inter-Arab Company)

Year Ended December 31, 20101. General informationArab Reinsurance Company S.A.L. ("the Company") is incorporated and licensed by a special presidential decree Number 2933 on 11 March 1972 as a Lebanese

joint stock company (Inter-Arab Company) to carry all reinsurance and investments activities and was registered in the Commercial Register of Beirut under

number 26233.

2. Summary of significant accounting policiesThe principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all

the years presented, unless otherwise stated.

2.1 Basis of presentationThe financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") and IFRIC interpretations.

The financial statements are prepared in US dollars which is the functional currency of the Company unless, otherwise stated.

The financial statements have been prepared in accordance with IFRS defined under IAS 1 'Presentation of financial statements'. The financial statements have

been prepared under the historical cost convention, except for the available for sale financial assets carried at fair market value.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise

its judgement in the process of applying the Company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where

assumptions and estimates are significant to the financial statements are disclosed in note 3.

2.2 Adoption of new and revised IFRSThe Company adopted during the year all new and amended international standards that are related to the Company's activities effective 1 January 2010. No

major changes resulted from the adoption of these standards.

(a) New standards, amendments and interpretations effective in 2010:

- IAS 1 (amended), "presentation of financial statements" (effective 1 January 2010).

- IAS 7 (amended), "Statement of cash flows" (effective 1 January 2010).

- IAS 32 (revised), "Financial instruments: presentation" (effective 1 February 2010). This standard allows the classification of the issuance of rights as

property rights when its prices are set other than the functional currency of the company. This standard is effective as at 1 February 2010 with a

retroactive effect.

- IAS 2 (revised), "Group's transactions paid in cash and payments based on the basis of equity" (effective 1 January 2010). These amendments are

explained in details under IFRIC 11 "Group transactions and treasury shares" in to treat the classification of the group that were not treated under IFRIC

11, in addition, those standards integrate the results of IAS 8 "Range of IAS 2" and note 11. These amendments are applied with a retroactive effect.

- IAS 9 "Financial instruments part 1: classification and measurement". This standard was issued during November 2009. This standard replaces parts of

the IAS 39 related to the presentation and measurement of financial assets. The main principles for this standard are as follows:

- The financial assets are presented in 2 types of measurement: The one measured later with what is called fair value and the one measured with

redemption cost. The measurement decision is based on the initial recognition of assets. This classification is based on the operational model

that the company follows in the management of its financial assets.

- The requirement of the measurement of financial instrument is based on redemption cost even if the objective of the company is to keep the

asset in order to collect the cash flow and so that cash flow represents the value of repayments and the correspondent interest. The measurement

of other financial assets is based on fair value from profit and loss.



(b) New standards, amendments and interpretations issued for the financial year but not applicable and not being previously adopted by the company:

- Revised IAS 24 (revised), 'Related party disclosures', issued in November 2009. It supersedes IAS 24, 'Related party disclosures', issued in 2003. IAS 24

(revised) is mandatory for periods beginning on or after 1 January 2011. Earlier application, in whole or in part, is permitted. The revised standard clarifies and

simplifies the definition of a related party and removes the requirement for government-related entities to disclose details of all transactions with the government

and other government-related entities. The Company will apply the revised standard from 1 January 2011. The impact of this standard is not expected to be

significant.

- IFRS 9, 'Financial instruments', issued in November 2009. This standard is the first step in the process to replace IAS 39, 'financial instruments: recognition

and measurement'. IFRS 9 introduces new requirements for classifying and measuring financial assets and is likely to affect the Company's accounting for its

financial assets. The standard is not applicable until 1 January 2013 but is available for early adoption.

2.3 Change in accounting policies and adjustments related to prior yearsAs of 1 January, 2010, the Company changed its accounting policy in respect of the recognition of revenue, claims and expenses of acquisition of insurance

contracts based on the revenue expected to be received from insurance companies "estimated premium income" and respective claims based on the ultimate loss

ratio.

The Company was previously recognising revenue upon receipt of statements from insurance companies and upon claims notification, without taking into account

the statements relating to financial year that are not yet received and the respective claims incurred but not reported to the Company before closing the financial

year related to estimated business.

This accounting policy was applied retrospectively on all the years presented in these financial statements as if this accounting policy was always applied. This

change has impacted the retained earnings negatively as of 31 December 2008 by US$ 4,953,680 and affected the net profits for the year 2009 negatively by US$

1,283,782.

In addition, and as of 1 January 2010, the Company changed its accounting policy in respect of the recognition of reinsurance commission income and expenses of

acquisition of insurance contracts. The Company started to recognise reinsurance commission income and expenses of acquisition of insurance contracts

proportionally over the period of coverage and in line with the ceded premium to reinsurers on insurance contracts issued. The Company was previously

recognising reinsurance commission income and expenses of acquisition of insurance contracts upon issuance of insurance contracts.

This new accounting policy was applied retrospectively on all years presented in these financial statements as if this policy has always been applied. The negative

effect on retained earnings as of 31 December 2008 from the recognition of unearned reinsurance commission amounted to US$ 3,417,388. Net profits for the year

31 December 2009 were affected positively by US$ 635,193. Moreover, the recognition of the deferred acquisition cost impacted positively the retained earnings

as at 31 December 2008 by US$ 10,100,630 when net profits for the year ended 31 December 2009 were negatively affected by US$ 1,807,675.

During 2010, the Company made an adjustment related to 2008 to record the impairment of available for sale financial assets in the statement of comprehensive

income instead of the fair value reserve. The impairment loss on the investments amounted to US$ 1,879,400.



2.4 Property and equipmentAll property and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the

items.

Depreciation is calculated using the straight-line method to write off the cost or revalued amount of each asset to their residual values over their estimated useful

lives as follows:

Subsequent expenditures are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic

benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the

statement of comprehensive income during the financial period in which they are incurred.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

The recoverable amount is the higher of the asset's fair value less costs to sell and value in use.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount. These are included in the statement of comprehensive income.

Upon sale of revalued assets, the related amounts accounted for under fair value reserves will be transferred to retained earnings.

2.5 Investment propertyProperty held for long-term rental yields that is not occupied by the Company is classified as investment property.

Investment property comprises land and buildings which are stated at historical cost based on IAS 40 'Investment property'.

Depreciation on the building is calculated using the straight-line method to allocate cost over the estimated useful economic lives. The estimated useful economic

life is 50 years.

The investment property carrying amount will be written down immediately to its recoverable amount, if the asset's carrying amount is greater than its estimated

recoverable amount.

2.6 Financial assets

2.6.1 Classification

The Company classifies its financial assets in the following categories: available for sale financial assets, held to maturity financial assets and receivables. The

classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial

recognition and re-evaluates this designation at every reporting date.

(a) Available-for-sale financial assets

Available for sale investments are financial assets that are intended to be held for an indefinite period of time, which may be sold in response to needs for liquidity or

changes in interest rate, exchange rates or equity prices or that are not classified in loans and receivables or at fair value through profit and loss.

Years

Buildings 50

Leasehold improvements 3

Office equipment 5-13

Furniture 13

Other equipment 10


Year Ended December 31, 2010(b) Held to maturity financial assets

Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Bank's management has the

positive intention and ability to hold to maturity, these do not include:

(i) those that the Company intends to sell immediately or in the short term, which are classified as held for trading, and those that the Company upon initial

recognition designates as at fair value through profit or loss; (ii) those that the Company upon initial recognition designates as available for sale; or (iii)

those for which the holder may not recover substantially all of its initial investment, other than because of credit deterioration.

The above are classified in the statement of financial position accordingly and the effective interest rate is applied.

These are initially recognised at fair value including direct and incremental transaction costs and measured subsequently at amortised cost, using the effective

interest method.

Interest on held-to-maturity investments is included in the statement of comprehensive income and reported as 'Interest and similar income'. In the case of

impairment, the impairment loss is reported as a deduction from the carrying value of the investment and recognised in the statement of comprehensive income as

"Net gains (losses) on investment securities".

(c) Receivables

Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, other than those that the Company

intends to sell immediately or in the short term, which are classified as at fair value through profit or loss.

Receivables are recognised initially at fair value and measured subsequently at amortised cost using the effective interest rate method, less provision for impairment.

A provision for impairment of receivables is established when there is objective evidence that the Company will not be able to collect all amounts due according to

their original terms. Receivables arising from insurance contracts are also classified in this category and are reviewed for impairment as part of the impairment

review of receivables.

2.6.2 Recognition and measurement

Regular way purchases and sales of financial assets are recognised on the trade-date – the date on which the group commits to purchase or sell the asset. Investments

are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss.

Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the Company has transferred

substantially all risks and rewards of ownership. Available-for-sale financial assets are subsequently carried at fair value. Receivables are carried at amortised cost

using the effective interest rate method.

The unrealized gains and losses resulting from the changes in the fair value of investments classified as available for sale are recognized in the fair value reserve in

shareholders’ equity. When securities available for sale financial assets investments are sold or impaired, the accumulated fair value adjustments are recognised in

the statement of comprehensive income.

Changes in the fair value of monetary securities denominated in a foreign currency and classified as available for sale are analysed between translation differences

resulting from changes in the amortised cost of the security and other changes in the carrying amount of the security. The translation differences on monetary

securities are recognised in profit or loss; translation differences on non-monetary securities are recognised in equity. Changes in the fair value of monetary and non-

monetary securities classified as available for sale are recognised in equity.

Interest on available for sale investments are recognised using the effective interest method is in the statement of comprehensive income. Dividends on available for

sale equity instruments are recognised in the statement of comprehensive income when the Company's right to receive payments is established. These revenues are

recognised under investment income.

The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active, the Company establishes fair value by using

valuation techniques. These include the use of recent arm's length transactions, reference to other instruments that are substantially the same, discounted cash flow

analysis and option pricing models making maximum use of market inputs and relying as little as possible on entity-specific inputs.



2.7 Impairment of financial assets

(i) Financial assets carried at fair value

The Company assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired. In the case of

equity securities classified as available for sale, a significant or prolonged decline in the fair value of the security below its cost is considered in determining

whether the securities are impaired. If any such evidence exists for available for sale financial assets, the cumulative loss - measured as the difference between the

acquisition cost and current fair value, less any impairment loss on that financial asset previously recognised in profit or loss - is removed from equity and

recognised in the statement of comprehensive income. Impairment losses recognised in the statement of comprehensive income on equity instruments are not

subsequently reversed.

The impairment loss is reversed through the statement of comprehensive income, if in a subsequent period, the fair value of a debt instrument classified as

available for sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognised the in statement of

comprehensive income.

(ii) Assets carried at amortised cost

The Company assesses at each reporting date whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or

group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that have

occurred after the initial recognition of the asset (a 'loss event') and that loss event (or events) has an impact on the estimated future cash flows of the financial asset

or group of financial assets that can be reliably estimated.

The criteria that the Company uses to determine that there is objective evidence of an impairment loss include:

- significant financial difficulty of the issuer or obligor;

- a breach of contract, such as a default or delinquency in interest or principal payments;

- the lender, for economic or legal reasons relating to the borrower's financial difficulty, granting to the borrower a concession that the lender

would not otherwise consider;

- it becomes probable that the borrower will enter bankruptcy or other financial reorganisation;

- the disappearance of an active market for that financial asset because of financial

difficulties; or

- observable data indicating that there is a measurable decrease in the estimated future cash flows from a portfolio of financial assets since the

initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the portfolio, including:

(i) adverse changes in the payment status of borrowers in the Company; and

(ii) national or local economic conditions that correlate with defaults on the assets in the Company.

The Company first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant. If the Company

determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of

financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for

which an impairment loss is or continues to be recognised are not included in a collective assessment of impairment.

For the purpose of a collective evaluation of impairment, financial assets are grouped on the basis of similar credit risk characteristics (ie, on the basis of the

Company's grading process that considers asset type, industry, geographical location, past-due status and other relevant factors). Those characteristics are relevant

to the estimation of future cash flows for groups of such assets by being indicative of the issuer's ability to pay all amounts due under the contractual terms of the

debt instrument being evaluated.

If there is objective evidence that an impairment loss has been incurred, the carrying amount of the asset is reduced through the use of an allowance account and

the amount of the loss is recognised in the income statement. If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related

objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed by adjusting the allowance account.

The amount of the reversal is recognised in statement of comprehensive income.


Year Ended December 31, 20102.7 Impairment of financial assets (continued)(iii) Other non-financial assets

Assets that have an indefinite useful life, for example land, are not subject to amortisation and are tested annually for impairment. Assets that are subject to

amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss

is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less

costs to sell and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows.

2.8 Offsetting financial instrumentsFinancial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts

and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

2.9 Dividend distributionDividend distribution to the Company's shareholders is recognised as a liability in the Company's financial statements in the period in which the dividends are

declared by the general assembly of shareholders.

2.10 Retirement benefit obligationsThe Company is subscribed to the compulsory defined benefit plan in accordance with the National Social Security Fund. A defined benefit plan is a pension plan that

defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and

compensation.

The liability recognised in the balance sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the balance sheet date less

contributions to the fund, together with adjustments for actuarial gains/losses and past service costs. The defined benefit obligation is calculated annually by the

Company using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows

using interest rates of government securities that have terms to maturity approximating the terms of the related liability.

2.11 Foreign currency translation(a) Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in which the Company operates ("the

functional currency"). The financial statements are presented in US Dollars ("US$"), which is the Company's functional and presentation currency.

(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign

exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and

liabilities denominated in foreign currencies are recognized in the statement of comprehensive income.

2.12 Cash and cash equivalentsCash and cash equivalents consist of deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less.

2.13 Share capitalOrdinary shares are classified as equity.

2.14 Current income taxThe income tax charge is calculated at the rate of 15% of assumed profit which represents 5% of gross premiums written in Lebanon and other operating income on

the basis of the local laws.

2.15 Investment incomeInvestment income mainly comprises interest and dividend income and realised gains and losses on sale of shares. Investment income is stated net of investment

expenses and charges.

Interest income is recognised on accrual basis. Interest includes interest earned on bank deposits and held to maturity investments. Dividend income is recognised

under investment income when dividends are declared. Realised gains and losses from sale of investments are calculated as the difference between net proceeds from

sale and the carrying value of investments.



2.16 Insurance contractsThe Company enters into insurance agreements whereby it compensates insurance companies for losses on one or more contracts issued by these companies. Such insurance agreements

transfer significant insurance risk to the Company.

(a) Recognition and measurement

The Company's insurance contracts cover general insurance risks insured by the Company.

General insurance contracts cover insurance risks written by the ceding companies. They protect the customers of the ceding companies from damage suffered to their assets as well as

against the risk of causing harm to third parties as a result of their legitimate activities. General insurance contracts also protect the customers of the ceding companies from the

consequences of events such as illness and disability.

Premiums are recognized as revenue when they are underwritten, and they include an estimation of underwritten premiums that are not yet received from the ceding companies and in

proportion with the period of coverage. Unearned premiums represent the proportion of premiums accepted in the year that relate to unexpired terms of policies in force at the statement

of financial position date, calculated on a time apportionment basis.

Claims and loss adjustments expenses are recognized in the statement of comprehensive income when incurred and based on the estimated claims on the basis of the ultimate cost of

settling the claims, using the ultimate loss ratios of the benefits due to contract holders and the third parties affected by the contract holders. These expenses include claims and loss

adjustment expenses direct or indirectly related to events occurring within the balance sheet date even if they were not reported to the Company.

The claims provisions cover future payments obligations from claims in respect of which the amount of the insurance benefit and / or the time of payment are still uncertain. These are

established for losses from loss events that occurred prior to the statement of financial position date. The level of the provision is based on information provided by cedants. Additional

provisions are constituted in cases where the provisions indicated by cedants are considered to be inadequate. The provisions also include claim settlement costs.

Taking into consideration the fact that significant time lags may exist between loss events and notification of the claims to the Company, incurred but not reported claims ("IBNR") are

established on the basis of the Company's own estimates for claims that have already been incurred but not yet reported. These are guided by the principle of best estimate using actuarial

methods (e.g. ultimate loss ratio methods). Such estimates are based upon both past experience and assessments of the future development. The adequacy of the provisions is regularly

reviewed.

The company does not discount liabilities for unpaid claims.

(b) Deferred acquisition costs

Commissions and other acquisition costs that are related to securing new contracts and renewing existing contracts are capitalized as deferred acquisition cost - ("DAC"). All other costs

are recognized as expenses when incurred. The DAC is subsequently amortised over the life of the contract. The resulting change to the carrying value of the DAC is charged to the

statement of comprehensive income.

(c) Reinsurance contracts held

Contracts entered into by the Company with reinsurers under which the Company is compensated for losses on one or more insurance contracts issued by the Company are classified as

reinsurance contracts held.

The benefits to which the Company is entitled under its reinsurance contracts held are recognized as reinsurance assets. These assets consist of short-term balances due from reinsurers

(classified within receivables), as well as longer-term receivables (classified as reinsurance assets) that are dependent on the expected claims and benefits arising under the related

reinsurance contracts. Amounts recoverable from or due to reinsurers are measured consistently with the amounts associated with the reinsurance contracts and in accordance with the

terms of each reinsurance contract. Reinsurance liabilities are primarily premiums payable for reinsurance contracts and are recognized as an expense when due.

The Company assesses its reinsurance assets for impairment on a yearly basis. If there is objective evidence that the reinsurance asset is impaired, the Company reduces the carrying

amount of the reinsurance asset to its recoverable amount and recognizes that impairment loss in the statement of comprehensive income. The Company gathers the objective evidence

that a reinsurance asset is impaired using the same process adopted for financial assets held at amortized cost. The impairment loss is also calculated following the same method used for

these financial assets. These processes are described in note 2.6.

Reinsurance commissions income received from reinsurers are earned over the same period as the related ceded premiums.

(d) Receivables and payables related to insurance contracts

Receivables and payables are recognized when due. These include amounts due to and from insurance companies and brokers. If there is objective evidence that the reinsurance

receivable is impaired, the Company reduces the carrying amount of the reinsurance receivable accordingly and recognises that impairment loss in the statement of comprehensive

income. The Company gathers the objective evidence that a reinsurance receivable is impaired using the same process adopted for loans and receivables. The impairment loss is also

calculated under the same method used for these financial assets.



2.17 Comparative figuresCertain comparative figures have been re-classified in order to conform with current year presentation.

3 Critical accounting estimates and judgements

The Company makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year. Estimates and judgments are

continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the

circumstances.

(a) The ultimate liability arising from claims under insurance contracts

The estimation of the ultimate liability arising from claims made under insurance contracts is one of the Company's critical accounting estimates. There are several

sources of uncertainty that need to be considered in the estimate of the liability that the Company will ultimately pay for such claims.

(b) Process used to decide on assumptions

The risks associated with these insurance contracts are complex and subject to a number of variables that complicate quantitative sensitivity analysis.

The Company uses assumptions based on a mixture of internal and market data to measure its claims liabilities. Internal data is derived mostly from the Company's

quarterly claims reports and screening of the actual insurance contracts carried out at year-end 2010 to derive data for the contracts held. The Company has

reviewed the individual contracts and in particular the industries in which the insured companies operate and the actual exposure years of claims. This information

is used to develop scenarios related to the latency of claims that are used for the projections of the ultimate number of claims.

The Company uses the ultimate loss ratio based on history and experience and multiplies this ratio by the earned premiums in order to estimate the ultimate cost of

claims.

4 Management of insurance and financial risk

The Company issues contracts that transfer issuance risks. This section summarizes the way the Company manages this risk.

4.1 Insurance riskThe risk under one insurance contract is the possibility that the insured event occurs and the uncertainty of the amount of the resulting claim. By the very nature of

an insurance contract, this risk is random and therefore unpredictable.

The principal risk that the Company faces under its insurance contracts is that the actual claims and benefit payments exceed the carrying amount of the insurance

liabilities. This could occur because the frequency or severity of claims and benefits are greater than estimated. Insured events are random and the actual number

and amount of claims and benefits will vary from year to year from the level established using statistical techniques.

Experience shows that the larger the portfolio of similar insurance contracts, the smaller the relative variability about the expected outcome will be. In addition, a

more diversified portfolio is less likely to be affected by a change in any subset of the portfolio. The Company has developed its insurance underwriting strategy

to diversify the type of insurance risks accepted and within each of these categories to achieve a sufficiently large population of risks to reduce the variability of

the expected outcome.

Factors that aggravate insurance risk include lack of risk diversification in terms of type and amount of risk, geographical location and type of industry covered.


Year Ended December 31, 20104.1 Insurance risk (continued)(a) Frequency and severity of claims

The frequency and severity of claims can be affected by several factors. The Company manages these risks through its underwriting strategy, adequate reinsurance

arrangements and proactive claims handling.

The underwriting strategy attempts to ensure that the underwritten risks are well diversified in terms of type and amount of risk and industry. Underwriting limits are in place

to enforce appropriate risk selection criteria. For example, the Company has the right not to renew individual policies, it can impose deductibles and it has the right to reject

the payment of a fraudulent claim.

The Company is protected by reinsurance arrangements including quota share, surplus excess of loss treaties as well as catastrophe treaties.

The concentration of insurance risk before and after reinsurance in relation to the type of general insurance risk accepted is summarized below, with reference to the

carrying amount of the related insurance liabilities (gross and net of reinsurance) arising from general insurance contracts:As at 31 December 2010 In US$ Type of risk

Fire Engineering Marine Motor Other Total

Gross 33,660,915 29,144,250 8,220,703 13,035,153 20,715,802 104,776,823

Net 24,801,649 18,672,244 8,067,216 13,035,153 19,242,523 83,818,785

As at 31 December 2009 in US$ Type of risk

Fire Engineering Marine Motor Other Total

Gross 32,037,366 28,715,756 8,738,261 14,930,876 20,918,215 105,340,474

Net 22,969,226 18,444,706 8,591,089 14,930,876 20,872,568 85,808,465

(b) Sources of uncertainty in the estimation of future claim payments

Claims on general insurance contracts are payable on a claims-occurrence basis. The Company is liable for all insured events that occurred during the term of the

contract, even if the loss is discovered after the end of the contract term. As a result, liability claims are settled over a long period of time and a larger element of the

claims provision relates to incurred but not reported claims ("IBNR"). There are several variables that affect the amount and timing of cash flows from these contracts.

These mainly relate to the inherent risks of the business activities carried out by insurance companies and the risk management procedures they adopted.

The estimated cost of claims includes direct expenses to be incurred in settling claims, net of the expected subrogation value and other recoveries. The Company takes all

reasonable steps to ensure that it has appropriate information regarding its claims exposures. However, given the uncertainty in establishing claims provisions, it is likely

that the final outcome will prove to be different from the original liability established. The liability for these contracts comprise a provision for IBNR, a provision for

reported claims not yet paid and a provision for unexpired risks at the balance sheet date.

In calculating the estimated cost of unpaid claims (both reported and not), the Company's estimation techniques are a combination of loss-ratio-based estimates and an

estimate based upon actual claims experience using predetermined formulae where greater weight is given to actual claims experience as time passes.

The initial loss-ratio estimate is an important assumption in the estimation technique and is based on previous years' experience, adjusted for factors such as premium rate

changes, anticipated market experience and historical claims inflation.

The estimation of IBNR is generally subject to a greater degree of uncertainty than the estimation of the cost of settling claims already notified to the Company, where

information about the claim event is available. IBNR claims may not be apparent to the insured until several months after the event that gave rise to the claims has

happened.

In estimating the liability for the cost of reported claims not yet paid the Company considers any information available from loss adjusters and information on the cost of

settling claims with similar characteristics in previous periods. Large claims are assessed on a case-by-case basis or projected separately in order to allow for the possible

distortive effect of their development and incidence on the rest of the portfolio.

Where possible, the Company adopts multiple techniques to estimate the required level of provisions. This provides a greater understanding of the trends inherent in the

experience being projected. The projections given by the various methodologies also assist in estimating the range of possible outcomes. The most appropriate estimation

technique is selected taking into account the characteristics of the business class and the extent of the development of each accident year.



4.2 Financial riskThe Company is exposed to a range of financial risks through its financial assets, financial liabilities, reinsurance assets and insurance liabilities. In particular the

key financial risk is that in the long term the proceeds from its financial assets are not sufficient to fund the obligations arising from its insurance contracts. The

most important components of this financial risk are interest rate risk, equity price risk, foreign currency risk and credit risk.

These risks arise from open positions in interest rate, currency and equity products, all of which are exposed to general and specific market movements. The risk

that the Company primarily faces due to the nature of its investments and liabilities is equity price risk. The Company manages these positions to achieve

investment returns in excess of its obligations under insurance contracts. The Company has not changed the processes used to manage its risks from previous

periods.

4.2.1 Market risk

Market risk is comprised of interest rate risk, equity price risk and currency risk.

(i) Interest rate risk

The Company's revenue will be significantly affected by changes in prevailing interest rates since a portion of its income derives from interest on investments

and bank deposits because interest-bearing assets earn interest at fixed rates.

• Exposure to interest rate risk

The table below summarises the effective interest rate at balance sheet date:

Effective interest rate

2010 2009

% %

Held to maturity investments 7.13 8.23

Bank deposits 5.64 5.81

Cash and cash equivalents 0.52 0.56

The sensitivity analysis for interest rate risk illustrates how changes in the fair value or future cash flows of a financial instrument will fluctuate because of

changes in market interest rates at the reporting date.

A change in 5% from interest income on cash and bank deposits would result in a gain or loss for the year of US$ 145,000 (2009 - US$ 167,000), recognized in

the statement of comprehensive income.

(ii) Equity price risk

The sensitivity analysis for equity risk illustrates how fair value of equity securities will fluctuate because of changes in market prices, whether those changes

are caused by factors specific to the individual equity issuer, or factors affecting all similar equity securities traded in the market.

The equity securities described in this note are classified as financial assets at fair value available for sale.

An increase or decrease in value by 5% (2009-5%) would result in the change of fair value of available for sale financial assets by US$ 417,697 (2009- US$

672,075).



(iii) Currency risk

The Company underwrites insurance contracts mainly in US Dollar. The Company concentrates its investments in assets denominated in the same currency as their

related liabilities; which reduces the foreign currency exchange risk for these operations. The Company's exposure to foreign currencies arises from assets and

liabilities that are denominated in currencies other than the US$.

In case of an increase or decrease in the price of Turkish lira against US Dollars by 5% (2009- 5%) with all other variables held constant, the profit for the year would

have an increased or decreased by US$ 456,000 (2009 - US$ 354,000).

In case of an increase or decrease in the exchange rate of other currencies against the US$ by 5% (2009- 5%) with all other variable held constant, the profit for the

year would increase or decrease by US$ 53,000 (2009- US$ 110,000).

The table below summarizes the Company's exposure to foreign currency exchange rate risk at 31 December 2010 and 2009. The Company's assets and liabilities

included in the table are categorized by currency at their carrying amount.

Indexed Turkish Lira Other Total

As at 31 December 2010 US$ in US$ in US$ in US$ in US$

Assets

Property and equipment 2,972,456 - - - 2,972,456

Investment property 581,566 - - - 581,566

Deferred acquisition cost 1,522,198 2,890,777 1,216,269 1,939,847 7,569,091

Available for sale financial assets 8,353,949 - - - 8,353,949

Held to maturity financial assets 54,200,403 - - 233,333 54,433,736

Insurance receivables 11,611,316 18,200,894 7,515,975 20,597,017 57,925,202

Reinsurance assets 3,470,719 9,517,479 3,876,410 4,093,430 20,958,038

Bank deposits with original maturity of more than 3 months 56,647,545 - - - 56,647,545

Cash and cash equivalents 2,301,652 - - 372,989 2,674,641

Total Assets 141,661,804 30,609,150 12,608,654 27,236,616 212,116,224

Liabilities

Insurance contracts 17,278,436 47,729,665 19,429,445 20,339,277 104,776,823

Unearned reinsurance commission 385,496 732,087 308,019 491,265 1,916,867

Accounts payable 6,003,878 5,820,355 2,001,401 5,338,030 19,163,664

Retirement benefit obligation 185,049 - - - 185,049

Income tax provision 87,000 - - - 87,000

Total liabilities 23,939,859 54,282,107 21,738,865 26,168,572 126,129,403

Net balance sheet position at 31 December 2010 117,721,945 (23,672,957) (9,130,211) 1,068,044 85,986,821

As at 31 December 2009

Total Assets 132,665,293 32,287,356 12,303,134 25,680,715 202,936,498

Total liabilities 25,435,345 55,927,368 19,377,183 27,874,772 128,614,668

Net balance sheet position at 31 December 2009 107,229,948 (23,640,012) (7,074,049) (2,194,057) 74,321,830


Year Ended December 31, 20104.2.2 Credit risk

The Company has exposure to credit risk, which is the risk that a counterparty will be unable to pay amounts in full when due. Key areas where the Company is exposed to

credit risk are:

– reinsurance assets including receivables from reinsurers;

– amounts due from insurance contract holders;

– amounts due from insurance intermediaries

– bank deposits; and

– financial assets held to maturity

The Company structures the levels of credit risk it accepts by placing limits on its exposure to a single counterparty, or groups of counterparty. Such risks are subject to a

regular review. Reinsurance is used to manage insurance risk. This does not, however, discharge the Company's liability as primary insurer. If a reinsurer fails to pay a

claim for any reason, the Company remains liable for the payment to the policyholder. The creditworthiness of reinsurers is considered by reviewing their financial

strength prior to finalization of any contract.

The table below summarizes assets bearing credit risk: 2010 2009

US$ US$

Insurance receivables (excluding prepayments) 57,862,576 57,534,251

Reinsurance assets 20,958,038 19,532,009

Financial assets held till maturity 54,433,736 44,435,600

Bank deposits 56,647,545 52,953,147

Cash and cash equivalents (excluding cash on hand) 2,673,377 2,983,232

Total assets bearing credit risk 192,575,272 177,428,239

The assets above are analyzed in the table below using Standard & Poor's rating or equivalent when not available from Standard & Poor's. The concentration of credit

risk is substantially unchanged compared to the prior year.

2010 2009

US$ US$

AA 2,941,307 2,820,301

A 13,582,711 10,640,983

BBB 15,235,591 12,822,812

Below BBB or not rated 130,229,240 121,538,139

Total 161,988,849 147,822,235

Pipeline receivable 30,586,423 29,606,004

192,575,272 177,428,239



4.2.3 Liquidity risk

The table below indicates the estimated amount and timing of cash flows arising from liabilities:

At 31 December 2010

In US$ Expected cash flows (undiscounted)

Carrying

Amount 0-1 year 1-2 years 2-3 years 3-4 years > 5 years

General insurance contracts 104,776,823 56,237,807 17,750,952 10,428,400 7,018,091 13,341,573

Less: reinsurance assets (20,958,038) (10,294,795) (3,634,869) (2,154,244) (1,542,558) (3,331,572)

Unearned reinsurance commission 1,916,867 1,916,867 - - - -

85,735,652 47,859,879 14,116,083 8,274,156 5,475,533 10,010,001

At 31 December 2009

In US$

General insurance contracts 105,340,474 52,886,554 18,449,179 11,641,808 8,521,207 13,841,726

Less: reinsurance assets (19,532,009) (10,190,661) (3,137,085) (1,896,649) (1,417,977) (2,889,637)

Unearned reinsurance commission 2,782,195 2,782,195 - - - -

88,590,660 45,478,088 15,312,094 9,745,159 7,103,230 10,952,089



5 Property and equipmentLand Leasehold Office Other

& building Improvements Furniture Equipment Equipment Total

in US$ in US$ in US$ in US$ in US$ in US$

In 1 January 2009

Cost 3,221,419 - 347,214 21,670 190,783 3,781,086

Accumulated depreciation (369,960) - (278,162) (21,670) (171,608) (841,400)

Net book value 2,851,459 - 69,052 - 19,175 2,939,686

Year ended 31 December 2009

Net book amount at the beginning of the year 2,851,459 - 69,052 - 19,175 2,939,686

Additions - 225,000 59,137 570 24,975 309,682

Disposals - - (1,400) - (200) (1,600)

Depreciation charge (39,723) (68,063) (19,367) (570) (10,005) (137,728)

Net book amount at the end of the year 2,811,736 156,937 107,422 - 33,945 3,110,040

31-Dec-09

Cost 3,221,419 225,000 404,951 22,240 215,558 4,089,168

Accumulated depreciation (409,683) (68,063) (297,529) (22,240) (181,613) (979,129)

Net book value 2,811,736 156,937 107,422 - 33,945 3,110,040

Year ended 31 December 2010

Net book amount at the beginning of the year 2,811,736 156,937 107,422 - 33,945 3,110,040

Additions - - 675 105 9,796 10,576

Depreciation charge (39,727) (74,250) (22,783) (105) (11,295) (148,160)

Net book amount at the end of the year 2,772,009 82,687 85,314 - 32,446 2,972,456

31-Dec-10

Cost 3,221,419 225,000 405,626 22,345 225,354 4,099,744

Accumulated depreciation (449,410) (142,313) (320,312) (22,345) (192,908) (1,127,288)

Net book value 2,772,009 82,687 85,314 - 32,446 2,972,456

Investment property comprises commercial shops leased or empty in Beirut central district in Maarad Street. The Company is holding the buildings for its

long term rental income.

The Company’s investment property revenue of its long term rent has reached US$ 105,000 in 2010 (2009- US$ 142,000).

2010 2009

US$ US$

Cost 665,676 665,676

Depreciation (84,110) (76,093)

At end of year 581,566 589,583

6 Investment property



7 Financial assets held till maturity2010 2009

US$ US$

Assets held to maturity

Debt securities issued by Lebanese Banks 3,294,398 3,141,549

Debt securities issued by the Lebanese government 36,269,495 36,011,364

Foreign debt securities 13,746,572 4,342,513

53,310,465 43,495,426

Interest earned but not received 1,123,271 940,174

54,433,736 44,435,600

Summarised below is the movement of financial assets held to maturity:

8 Available for sale financial assets Restated

2010 2009

US$ US$

Financial assets at fair value- listed 3,926,671 6,015,952

Financial assets at fair value- not listed 4,427,278 7,366,808

8,353,949 13,382,760

Interest earned but not received - 58,750

8,353,949 13,441,510

Summarised below is the movement of available for sale financial assets: Restated

2,010 2,009

US$ US$

Balance at the beginning of the year 13,382,760 15,902,967

Additions 308,165 3,090,622

Disposals (4,617,136) (4,480,000)

Change in fair value (719,840) (1,130,829)

8,353,949 13,382,760

The provision for impairment of available for sale financial assets amounted to US$ 1,879,400 at 31 December 2010. (31 December 2009 - US$ 1,879,400).

2010 2009

US$ US$

Balance at the beginning of the year 43,495,426 39,809,070

Additions 10,279,905 6,707,513

Maturities (500,000) (3,048,800)

Amortisation 35,134 27,643

53,310,465 43,495,426



Restated

2,010 2,009

US$ US$

Pipeline receivables 30,586,423 29,606,004

Due from insurance companies and brokers 5,939,895 8,885,961

Provision for impairment of receivables (1,800,000) (1,800,000)

Deposits with ceding companies 21,555,024 19,818,174

Prepaid expenses 62,626 64,171

Interest receivable 812,213 564,365

Due from employees 205,003 75,475

Other receivables 564,018 384,272

57,925,202 57,598,422

9 Loans and receivables including reinsurance receivables

The carrying amount of loans and receivables approximates their fair values at 31 December 2009 and 2010.

There is no concentration of credit risk with respect to balances due from contract holders, as the Company has a large number of dispensed debtors.

As at 31 December 2009 and 2010, receivables with a carrying value of US$ 1.8 billion (2009 – US$ 1.8 billion) were impaired and fully provided for. All

impaired receivables were overdue more than one year.

As at 31 December 2010, past due but not impaired due from insurance companies is equal to US$ 4.14 million (2009 - US$ 7.08 million).

The interest on deposits with ceding companies amounted to 1.7% (2009- 1.6%).

10 Bank deposits with original maturity of more than 3 monthsBank deposits include deposits that originally mature within 3 months or more as at 31 December 2010 for deposits of a period of not more than 1 year.

The effective interest rate on short-term bank deposits amounted to 5.64% (2009 - 5.81%).

11 Cash and cash equivalents

2010 2009

US$ US$

Bank deposits 56,647,545 52,953,147

Cash on hand 1,264 -

Bank current accounts 2,673,377 2,983,232

2,674,641 2,983,232



Restated

2010 2009

US$ US$

Balance at beginning of the year – as reported 1,963,213 832,384

Restatement of prior years (1,879,400) (1,879,400)

Balance at beginning of the year - restated 83,813 (1,047,016)

Fair value of disposed off investments (618,624) -

Unrealised fair value loss 719,840 1,130,829

185,029 83,813

12 Fair value reserveBelow is the movement of the fair value reserve of available for sale financial assets:

13 Share capitalAt 31 December 2010, the share capital is comprised of 60,000,000 authorised and fully paid shares with a par value of US$ 1 each. (2009- 50,000,000 authorised

and fully paid shares with a par value of US$ 1 each).

The extraordinary general assembly approved the increase of capital of US$ 10,000,000 on 20 May 2010. The extraordinary general assembly convened on 17

December 2010 and approved the proper underwriting of the increase in capital.

14 Legal reserveAccording to Article 60 of the Company's by-laws, 10% of the annual net profit should be transferred to a capital reserve until the total of this reserve becomes

equal to the Company's capital. This reserve includes the legal reserve required according to Article 165 of the Lebanese Code of Commerce. This reserve is not

available for distribution to shareholders.

15 Dividends paidOn 20 May 2010 (2009 – 30 May 2009) the general assembly of shareholders approved the distribution of US$ 5 million to all shareholders. (2009 - US$ 5

million).

16 Insurance contracts and reinsurance assets Restated

2010 2009

US$ US$

General insurance contracts

Outstanding claims 70,120,412 61,297,510

Unearned premiums provision 25,824,680 29,110,338

Claims incurred but not reported 8,831,731 14,932,626

Total insurance liabilities, gross 104,776,823 105,340,474

Recoverable from reinsurers



20,958,038 19,532,009

Net



Claims incurred but not reported 8,831,731 14,932,626

83,818,785 85,808,465



16.1 Development claims tablesThe development of insurance liabilities provides a measure of the Company's ability to estimate the ultimate value of claims. The top half of each table below

illustrates how the Company's estimate of total claims outstanding for each underwriting year has changed at successive year-ends. The bottom half of the tables

reconciles the cumulative claims to the amount appearing in the balance sheet. An underwriting-year basis is considered to be most appropriate for the business written

by the Company.

Underwriting year 2005 2006 2007 2008 2009 2010 Total

US$ US$ US$ US$ US$ US$ US$

Estimate of ultimate claims costs:

- at end of accident year 18,255,791 19,733,441 29,706,512 35,760,403 26,797,229 23,358,204 153,611,580

- one year later 28,410,853 32,829,145 44,376,075 51,845,003 40,604,780 - 198,065,856

- two years later 29,587,381 34,595,523 46,920,283 54,421,975 - - 165,525,162

- three years later 30,037,925 31,970,130 47,736,002 - - - 109,744,057

- four years later 30,121,959 36,026,194 - - - - 66,148,153

- five years later 30,192,634 - - - - - 30,192,634

Current estimate of cumulative claims 30,192,634 36,026,194 47,736,002 54,421,975 40,604,780 23,358,204 232,339,789

Current payment to date (27,323,587) (28,648,820) (37,506,721) (39,114,794) (19,201,451) (5,753,224) (157,548,597)

Liability recognised in the balance sheet 2,869,047 7,377,374 10,229,281 15,307,181 21,403,329 17,604,980 74,791,192

Liability in respect of prior years' 4,160,951

Total liability included in the balance sheet 78,952,143

17 Retirement benefit obligationThe Company computed the retirement benefit obligation in accordance with IAS 19 using the projected unit credit method as of 31 December 2010. By using this

method, the company determined the future years of service for employee, for and his expected future increase in income. The average increase in salary is around 6%

(2009-6%) and the increment increase is 8% (2009-6%).

The movement in the provision recognised in the balance sheet is as follows:

2010 2009

US$ US$

At beginning of year 126,977 165,314

Provision charged to income statement (note 24) 58,072 -

Utilised during the year - (38,337)

At end of year 185,049 126,977



18 Accounts Payable2010 2009

US$ US$

Current account with insurance companies reinsurers and brokers 7,780,279 5,771,448

NSSF and other taxes payable 92,208 104,444

Deposits to reinsurance companies 9,412,151 12,605,381

Accrued expenses 160,509 83,594

Other liabilities 1,718,517 1,740,155

19,163,664 20,305,022

19 Net insurance premium revenueRestated

2010 2009

US$ US$

Insurance contracts

Insurance premium revenue 53,672,397 55,353,719

Change in unearned premium provision 3,285,658 5,449,860

Insurance premium revenue 56,958,055 60,803,579

Insurance premium revenue ceded to reinsurers 9,772,417 13,024,396

Change in reinsurance share of unearned premium provision 2,364,474 1,711,482

Insurance premium revenue ceded to reinsurers 12,136,891 14,735,878

Net reinsurance premium revenue 44,821,164 46,067,701

2010 2009

US$ US$

Interest on bank deposits 2,893,350 3,348,206

Interest on debt securities 3,875,945 3,654,144

Gain on sale of available for sale financial assets 327,317 4,918

Interest from commercial banks 66,048 12,115

Amortisation of premium (580) (437,026)

Other income 5,259 2,664

interest income from cedants' deposits 348,402 313,684

7,515,741 6,898,705

20 Investment income

21 Reinsurance commission income and profit sharingRestated

2010 2009

US$ US$

Insurance contracts

Reinsurance commission income and profit sharing 2,573,140 3,686,802

Unearned reinsurance commissions at beginning of year 2,782,195 3,417,388

Unearned reinsurance commissions at end of year (1,916,867) (2,782,195)

3,438,468 4,321,995



22 Insurance claims and loss adjustment expense

23 Expenses for acquisition of insurance contracts

24 Expenses for administration

Restated

2010 2009

US$ US$

Insurance contracts

Gross paid claims 40,334,118 50,829,356

Change in the provision for outstanding claims and IBNR 2,722,007 (7,209,952)

Insurance claims and loss adjustments expenses 43,056,125 43,619,404

Reinsurance share of paid claims 8,892,710 14,783,004

Change in reinsurer' share of outstanding claims and IBNR 3,790,503 (7,204,382)

Reinsurer' share of incurred claims 12,683,213 7,578,622

Insurance claims net of reinsurance 30,372,912 36,040,782

Restated

2010 2009

US$ US$

Commission paid 14,409,597 14,426,182

Deferred acquisition costs at beginning of year 8,292,955 10,100,630

Deferred acquisition costs at end of year (7,569,091) (8,292,955)

Total expenses for the acquisition of insurance contracts 15,133,461 16,533,857

2010 2009

US$ US$

Employee benefit expense (note 25) 1,697,826 1,670,550

Depreciation (note 5) 156,175 158,094

Utilities 157,693 149,171

Professional fees 255,187 90,111

Maintenance and repairs expenses 76,165 77,175

Rent 97,565 79,718

Other taxes 173,572 58,401

Other administrative expenses 487,433 336,189

Board of director's attendance fees 401,363 256,667

Board of director's expenses 190,406 223,967

Negative difference of exchange 257,168 350,756

Total administrative expenses 3,950,553 3,450,799

Less: Arab Re Pool expenses (516,331) (472,472)

3,434,222 2,978,327



25 Employee benefit expense

26 Other operating income

27 Income TaxThe Company pays taxes on the basis of 15% of the net profits calculated based on 50% of the premium underwritten in Lebanon.

The income tax is comprised of the following

2010 2009

US$ US$

Salaries and wages 1,383,579 1,412,117

National social security costs 178,979 183,860

End of service indemnity costs (note 17) 58,072 -

Other staff costs 77,196 74,573

1,697,826 1,670,550

2010 2009

US$ US$

Rent income 105,683 142,803

Commission from Arab Re pool 464,947 538,209

Other income - 373,404

Income related to Arab Re pool (note 14) (516,331) (472,472)

54,299 581,944

2010 2009

US$ US$

Income tax on profits 86,822 59,928

Other taxes 36,048 52,989

122,870 112,917

The insurance revenues subject to income tax are comprised of the following:

Open tax years that are subject to examination and acceptance by the fiscal authorities comprise the financial years 2009 & 2010.

Gross premiums written in Lebanon 5,661,982 6,451,162

Commissions received on ceded premiums 484,027 659,823

Other income 1,393,292 879,415

7,539,301 7,990,400

Assumed profit at a weighted average

rate of 7.67% (2009 – 5%) 578,813 399,520

Tax rate 15% 15%

86,822 59,928



28 Related parties

The related parties are comprised of the board of directors. Related parties transactions are summarised as follows:

29 Cash from operating activitiesRestated

2010 2009

US$ US$

Cash flow from operating activities Note

Profit before tax 6,889,077 2,317,379

Adjustments for:

Depreciation 5, 6 156,177 158,094

Amortisation (35,134) (27,643)

(Gain) loss from sale of available for sale of financial assets (326,737) 432,108

Gain from sale of equipment - (783)

Interest income (7,124,830) (7,328,149)

Net decrease in insurance contracts (563,651) (12,659,812)

(Increase) decrease in reinsurance assets (1,426,029) 8,915,864

Decrease in deferred acquisition cost 723,864 1,807,675

(Increase) decrease in insurance receivable (78,932) 3,108,828

Increase (decrease) in retirement benefit obligation 58,072 (38,337)

(Decrease) increase in accounts payable (1,141,358) 360,783

Decrease in unearned reinsurance commission (865,328) (635,193)

Net cash used in operations (3,734,809) (3,589,186)

Income tax paid (95,870) (156,719)

Net cash used in operating activities (3,830,679) (3,745,905)

30 Change in the accounting policies and restatement of prior years

The effect of change in accounting policies on the retained earnings is summarised below: 2009 2008 & before

US$ US$

Deferred acquisition cost (1,807,675) 10,100,630

Unearned reinsurance commission 635,193 (3,417,388)

Recognition of revenues and claims not yet received (1,283,782) (4,953,680)

Total effect on retained earnings (2,456,264) 1,729,562

Restatement related to prior years:

2,009 2,008

US$ US$

Provision for impairment of available for sale financial assets - (1,879,400)

2010 2009

US$ US$

Board of directors remuneration and bonus 401,363 256,667

Shareholders

Lebanon

Bahrain

Syria EgyptSaudi Arabia

Algeria UAETunisia Yemen

Morocco

SudanIraq Jordan

Libya Kuwait

Saudi Arabia

• Sheikh Khaldoun Barakat

•Trade Union Insurance Co.

• SAUDI FOR TRADING EST/SATRA

• Gulf Cooperation Insurance Co.

•••

Capital - Riyadhالرياض العاصوت

Population الكثافت السكاًيت 27,601,038

Total Area 2,149,670 sq km الوساحت

Currency - Riyalريال العولت

Int’l Phone Code فخح الخط الذولي 966+

GMT فارق الخوقيج عي جريٌيخش 3+

•

Lebanon

• La Phenicienne Co. d'Assurance

• General Insurance Company for the Near East –

Al Ittihad Al Watani

• United Commercial Assurance

• Saudi Arabian Insurance Company

• Arabia Insurance Co.

• Banque Misr Liban

• Middle East Assurance & Reinsurance Co. (Mearco)

• Amana Insurance Co.

•Tannous Feghali

•–

•

••••••

Capital - Beirutبيروث العاصوت

Population الكثافت السكاًيت 3,925,502

Total Area 10,452 sq km الوساحت

Currency - Liraالليرٍ العولت



•

Syria

• Syrian Insurance Co. •

Capital - Damascusدهشق العاصوت

Population 19,314,747 الكثافت السكاًيت


Currency - Liraليرة العولت



Egypt

••

• Misr Insurance Company

• Misr for Insurance Life

Capital - Cairoالقاُرة العاصوت



Currency - EGPجٌيَ العولت



Libya

Capital - Tripoliطرابلس العاصوت



Currency - Dinarديٌار العولت



• Libya Insurance Co. SPL •

Kuwait

•••

• Gulf Insurance Co.

• Kuwait Investment Authority

• Al Ahleia Insurance Co.

Capital - Kuwaitالكويج العاصوت






Morocco

• Societe Centrale de Reassurance

• La Mutuelle Agricole Marocaine D'Assurances (MAMDA)••

Capital - Rabatالرباط العاصوت



Currency - Dirhamدرُن العولت



Iraq

••–

•

• Iraq Reinsurance Co.

• National Insurance Co.

• Iraq Insurance Co.

Capital - Baghdadبغذاد العاصوت






Tunis

Capital - Tunisحوًس العاصوت






• Societe Tunisienne de Reassurance

• Societe Tunisienne d'Assurance et de Reassurance

• COMAR Assurances

• Groupe des Assurances de Tunisie

• ASTREE Compangnie d’Assurance et de Reassurance

• Mutuelle Generale d'Assurances

• Ministere de Finance - Direction des Assurances

• Cie. d'Assurance et de Reassurance Tuniso-Europeenne

•••••••–

•

Algeria

• Compagnie Centrale de Reassurance •

Capital - Algeriaالجزائر العاصوت






Jordan

Capital - Ammanعواى العاصوت






•••••••

••

• AL MANARA Insurance

• Holy Land Insurance Co.

• Arab Union Int’l Insurance Co.

• The United Insurance Co.

• Middle East Insurance Co.

• Jerusalem Insurance Co.

• Arab Bank

• Jordan Insurance Co.

• The National Ahlia Insurance Co.

Bahrain

• Bahrain National Holding Co. •

Capital - Manamaالوٌاهت العاصوت

Population 708,573 الكثافت السكاًيت

Total Area 665 sq km الوساحت

Currency - BHDديٌار العولت



United Arab Emirates

Capital - Abu Dhabiأبوظبي العاصوت



Currency - AEDدرُن العولت



•Al Ain Ahlia Insurance Co. PSC

• Sharjah Insurance Co. PSC

••

Sudan

• The National Reinsurance Co. •

Capital - Khartoumالخرطوم العاصوت






Yemen

• Yemen Insurance & Reinsurance Co. •

Capital - Sana'aصٌعاء العاصوت



Currency - YERريال العولت



Documents

Arab Re Annual Report · Mr. Mohamed Hammoud Mr. Mohammad Naji Ahmed Manager Technical Ms. Basma Barakat Technical Mr. Ibrahim Yassin Internal Audit. ... However, premium growth will