SCR · SCR has continued to support the development of the Arab-African Reinsurance Market, while strengthening its proximity with its clients and partners. By pursuing a deeply client-focused

SCRSOCIETE CENTRALE DE REASSURANCER E S I L I E N C E B U I L D E R S I N C E 1 9 6 0

ANNUAL REPORT 2018

ANNUAL REPORT 2018SOCIETE CENTRALE DE REASSURANCERESILIENCE BUILDER SINCE 1960

A CLIENT-FOCUSED VISION

A WORD FROM OUR PRESIDENT P03

A WORD FROM OUR GENERAL MANAGER P04

GOVERNANCE P05

SCR IN 2018

PROFILE AND MISSIONS P07

HIGHLIGHTS P08

SCR ACADEMY RE FOUNDATION P09

HUMAN CAPITAL P15

SOCIAL COMMITMENT P18

INSURANCE AND REINSURANCE MARKET

SECTOR CONTEXT P21

ECONOMIC ENVIRONMENT P24

FINANCIAL AND GENERAL MANAGEMENT

STATUTORY AUDITORS ‹REPORT P29

RESOLUTIONS OF THE GENERAL ASSEMBLY P30

KEY FIGURES P32

SCR’S REGIONAL RANK P33

TECHNICAL MANAGEMENT P34

FINANCIAL STATEMENTS P36

Tour Atlas, Place ZallaqaB.Postale 13 183 - CasablancaTel.: +212 522 46 04 00Fax : +212 522 46 04 60E-mail : [email protected] : www.scrmaroc.com

Representative Offices

Head Office Morocco

Limited Liability Company governed by the Dahir of Chaoual 23 - April 20, 1960Capital of MAD 1,5 billion - fully paid up

Convention of March 9, 1960between the State and the Caisse de Dépôt et de Gestion - C.D.G

as amended by the agreement of November 28, 2000Company regulated by the Insurance Code

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Cairo, EgyptAlex Desert roadArab Academy Building Smart VillageOffice N° 119 - Ground Floor

Kigali, RwandaCity Tower - Plot N° 6418 - 14th FloorAvenue du Commerce

Abidjan, Ivory CoastNogues Avenue - PlateauCNPS Building - 2nd Floor

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ANNUAL REPORT 2018ANNUAL REPORT 2018

Mr. ABDELLATIF ZACHNOUN

The Société Centrale de Réassurance (SCR) has continued its development as part of the deployment

of its “Strong II” transformation plan launched in September 2016, acquiring significant performance

and achieving the assigned objectives.

In 2018, SCR enhanced and consolidated its position as a major player in both the local and regional

reinsurance markets. It has managed to reinforce both its competitive advantage and its role in

businesses of general interest. It is also committed to the catastrophe risk coverage scheme in

consultation with all parties concerned.

At the International level and after the opening of the Abidjan office, SCR continues to expand regionally

through its presence in East Africa, in Kigali, Rwanda and Cairo, Egypt.

SCR has demonstrated good operational performances for the 2018 financial year. These have been

hailed by the main rating agencies, AM Best and Fitch Ratings, which respectively granted the Company

with the B++(Good) / Stable outlook and AAA (local scale) ratings.

I would like to express my sincere gratitude to our partners, but also to our Moroccan and foreign

clients, for the trust they have shown us since 1960. I would also like to thank the management of

SCR, as well as all our employees for their support, perseverance and ability to meet all challenges

in a constantly evolving regulatory environment.

A WORD FROM THE PRESIDENT

Great Hassan II Mosque and ancientmadina • Casablanca

VISION FOCUSED ON THE “CLIENT”

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M. YOUSSEF FASSI FIHRI

I am pleased to report that FY 2018 has been a very eventful year for Société Centrale de Réassurance (SCR), highlighted by key events carried out in accordance with our strategic plan. Moreover, our various business lines have achieved their objectives.

By opening two representative offices in Kigali and in Cairo, in addition to a contact office in Abidjan, SCR has continued to support the development of the Arab-African Reinsurance Market, while strengthening its proximity with its clients and partners.By pursuing a deeply client-focused vision, SCR teams have stamped the deployment of the “Strong II” transformation plan, allowing our organization to strengthen and consolidate its role as a reference player, while taking into consideration the new challenges related to the development of international markets.

SCR has also created its own training foundation. Named “SCR ACADEMY RE”, this foundation provides the company's partners with technical expertise in a variety of areas related to insurance, pricing and actuarial prevention.

Internally, SCR has continued to capitalize on the development of team skills, through the implementation of continuous training to ensure a high level of expertise to both clients and partners.

By acquiring a new structure exclusively dedicated to “Specialty Lines”, SCR is also broadening its range of products and services and enhancing its support system to meet the specific needs of its Moroccan and foreign partners regarding these specialty business lines.

All these efforts allowed SCR to achieve a turnover of MMAD 2023.85 million and a net profit of MMAD 300.13 million. I would like to express my sincere thanks to all the partners who have trusted us since the creation of the Company and I extend my sincere congratulations to all the employees for their commitment and their dedication.

A WORD FROM THE GENERAL MANAGER

INNOVATIVE VISIONGOVERNANCE

Board of directors

Board Chairman

Mr. Abdellatif ZAGHNOUN

Board members

Mrs. Latifa ECHIHABI

Mr. Hamid TAWFIKI

Mr. Yassine Abderrazik HADDAOUI

Mr. Mohamed Ali BENSOUDA

Mr. Nouamane AL AISSAMI

Caisse de Dépôt et de Gestion represented by

Mr. Mustapha LAHBOUBI

AXA ASSURANCE MAROC represented by

Mr. Philippe ROCARD

Board Secretary

Mr. Mohamed AIT AMAR

Audit and Internal Control Committee

Mr. Mustapha LAHBOUBI: President

Mr. Mohamed Ali BENSOUDA: Member

Strategic and Investment Committee

Mr. Abdellatif ZAGHNOUN: President

Mr. Hamid TAWFIKI: Member

Yassine Abderrazik HADDAOUI: Member

Mr. Philippe ROCARD: Member

Audit and Internal Control Committee

Mr. Yassine Abderrazik HADDAOUI: President

Mr. Hamid TAWFIKI: Member

Mr. Fayçal BELHASSANI: Member

COMMITTEES

Statutory Auditors

Coopers Audit

A VISION FOCUSEDON THE “CLIENT”

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“Société Centrale de Réassurance” (SCR) was created in 1960 by an agreement between the Moroccan State and the “Caisse de Dépôt et de Gestion” (CDG). This convention was modified and renewed on November 28, 2000.

A National Leader...

As a subsidiary of the Kingdom’s largest financial group (CDG), SCR holds a leading position in the reinsurance market in Morocco. It also plays an institutional investor role by helping to retain premiums and to mobilize savings in the national economy. SCR ensures its economic profitability by serving the Moroccan market and developing external relations in various targeted areas.

In terms of securing of the Moroccan market, SCR, with its large experience and its perfect knowledge of international reinsurance markets, offers the required protection to the Moroccan market to cope with international fluctuations of reinsurance conditions.

... which exerts influence on an international scale

At an international level, SCR is one of the oldest reinsurance companies in Africa, that has effectively contributed to the creation of regional bodies such as the Arab General Insurance Union and the African Insurance Organization. SCR also worked for the creation of regional companies such as the Arab Reinsurance Company and the African Reinsurance Company.

The experience acquired by SCR has been made available to many Arab and African countries that have created similar companies. As a result, SCR often hosted representatives from countries in Africa and in the Middle East for information and training missions.

Main areas of intervention:• Reinsurance support for the Moroccan Market• Missions of general interest: disaster risk regime• Serving insurers and major Moroccan groups

in their international development• Implementation of new products on behalf of

Moroccan and African insurance companies (Credit Guarantee, Parametric Insurance, Cyber Risk, Political Violence, etc.)

• Subscription Zone: Africa, Middle East and some Asian Markets (India, China, Iran, South Korea, Pakistan, …)

SCR Strategy

Throughout 2018, SCR has maintained its leadership position in the local market, while ensuring a carefully managed cross-border growth strategy. Thus, year 2018 was marked by the realization of most of the projects of the “Strong II” Transformation plan with a more than 80% progress rate, together with the preparation of the transfer of their operational component.

A special attention was made at the end of the year on the implementation of a new strategic thinking meeting the Company's future challenges. In addition, international development has continued in accordance with a specific growth strategy combining revenue and profitability. This strategy allowed SCR to confirm and consolidate its regional reinsurer status at continental level, while taking into account the various regulatory changes underway.

The international deployment was marked by the penetration of new markets and the opening of two contact offices (in Rwanda and in Egypt). SCR has continued to support public authorities in their various missions of general interest, in particular in the management of catastrophe risk coverage, as well as in the implementation of the new circular relating to risk based solvency.

SCR in 2018PROFILE AND MISSIONS

Maret Building, Boulevard Mohammed V • Casablanca

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Targeting High Potential Markets and International Expansion

• A representative office has been opened in Kigali (Rwanda).

SCR has pursued its cross-border expansion strategy by obtaining a license for the opening of a representative office in Kigali, Rwanda. This choice is mainly due to the development prospects offered by the country, which has achieved good economic growth and significant infrastructure.

On October 12, 2018, a SCR delegation, led by its Chief Executive, Mr. Youssef Fassi Fihri, went to Kigali in order to celebrate the opening of SCR Rwanda office, in the presence of delegates from local Insurance and Reinsurance Companies.

• Opening of a representative office in Cairo (Egypt)

Also in line with its international development strategy, SCR managed to obtain a license for the opening of a representative office in Cairo, Egypt. In conjunction with the Sharm el Sheikh annual meeting, a ceremony was organized by SCR on October 28, 2018 in order to celebrate this new establishment.

SCR has joined Casablanca Finance City (CFC)

As part of its development policy, SCR has joined Casablanca Finance City (CFC), the leading financial center in Africa and partner of the largest international financial centers. Acquiring this status emphasizes more than ever SCR›s willingness to continue its deployment towards new partnerships in Africa, while reinforcing its reinsurance leadership position in the Moroccan market.

With the opening of its representative offices in Ivory Coast, Rwanda and Egypt, SCR, as a member, will also benefit from an excellent quality “Doing Business” assistance aiming at further promoting the development of its activities in the region.

SCR in 2018HIGHLIGHTS

A new exclusive “Specialty Lines” structure has been launched

In order to enrich its offer and to consolidate its strategic development plan, SCR set up, in February 2018, a new framework that is exclusively dedicated to Specialty Lines. The purpose of this scheme is to provide the customers with a broader range of products and services that can meet their specific needs on specialty business lines such as credit insurance, political violence, cyber risks, etc.

This transversal structure is more than ever necessary to make “Specialty Lines” a major development vector for SCR. It allows to focus on a wide range of strong actions via a large acquisition of expertise, a sectorial watch, a setup of partnerships and coverage creations.

Whether at the national or international level, SCR has been heavily involved in conferences and major events related to the profession.On a national level

• SCR is the Institutional Sponsor of the 5th edition of the Insurance Meeting in Casablanca.

SCR sponsored the 5th edition of the Insurance Meetings in Casablanca, held on April 4 and 5, 2018 under the theme “Disruption in Insurance: Explore, Innovate, Reinvent”. Tanzania was the country of honor of this edition.

• SCR is the Federator of the Actuarial Profession

As an institutional member of the Moroccan Association of Actuaries (AMA), SCR renewed its membership on this association whose objective is to encourage the promotion of actuarial sciences for the general public, but also for institutions and for companies. As an active member, SCR was the Silver Sponsor of the 5th African Actuarial Congress, which aims to put into perspective, through the actuarial profession, the dynamics of the banking and insurance sectors, which are constantly evolving in Africa.

• SCR participation at the FNACAM’s 3rd annual meeting

In October 2018, SCR has participated to the 3rd edition of the agents and insurance brokers annual meeting, organized by the National Federation of Insurance Agents and Brokers in Morocco (FANACAM). This meeting allows the professionals of the industry to review the difficulties of the profession and to expose these difficulties to the regulators, in order to find solutions together and to explore new innovative leads.

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• SCR participation at the 5th edition of PREVENTICA

SCR has participated at the 5th edition of PREVENTICA which took place from 26 to 28 April in Casablanca. Organized around several topics related to health and to safety at work, but also to fire safety and to companies safety, this fair brought together more than 5000 professionals. It has enabled risk managers working at SCR to learn, train and meet many experts while creating new business opportunities.

At an international level

• SCR took part in the 26th AMRAE Risk Management meetings

SCR has participated at the 26th Risk Management meetings that took place from 7 to 9 February 2018, in Marseille (France). The Meetings of the Association for Risk Management and Insurance of the Company (AMRAE) combined plenary sessions with talented speakers, training sessions and thirty workshops conferences, thus constituting a real breeding ground for discussion, but also for exchanges and for dissemination of good risk management practices.

This congress was also an opportunity for SCR to meet all the influent players of the insurance value chain (insurers, brokers, experts, consultants, ...) and to discuss common topics.

• SCR is the Silver Sponsor of the 42nd General Assembly of FANAF

SCR has participated as a Silver Sponsor at the 42nd General Assembly of the Federation of African National Insurance Law Societies (FANAF), organized from 12th to 15th February 2018 in Kigali (Rwanda), under the theme “ African Insurance : disruption test “. This event brought together more than 400 professionals from the Insurance and Reinsurance industry, as well as brokerage firms, regulators, bankers, institutional and government representatives.

• SCR has participated at the 45th Conference and General Assembly of the African Insurance Organization (CAA)

SCR took part at the 45th Conference and General Assembly of the African Insurance Organization (OAA), held from May 6 to 9, 2018, in the Ghanaian capital Accra, one of the largest cities in West Africa. This event allowed SCR to further develop its relations with its African partners and to exchange with several professionals from the insurance, reinsurance and finance industry, around the theme“Innovation, risks and future of the insurance in emerging markets “.

• SCR participation at the 29th East Asian Insurance congress

SCR, represented by its team from the New Markets Department, has participated at the 29th East Asian Insurance Congress (EAIC). This major insurance event was organized in Manila (Philippines) from May 6 to 9, 2018. It brought together hundreds of leaders from the Insurance and Reinsurance industry around the following theme: “ Managing Disruptions, Engine of Change “.

During this event, SCR expanded its international portfolio of clients and contacts. The company also developed new business relationships, while exploring new markets in the region.

• SCR has participated at the GAIF 32nd Conference and General Assembly

SCR was at the 32nd Conference and General Assembly of the Arab General Insurance Union “GAIF”, organized from June 24 to 27, 2018, in Hammamet (Tunisia). More than 1500 experts, specialists and managers of insurance and reinsurance companies, from around fifty countries, were there to discuss the theme “Digital Transformation and the Insurance Industry in the Arab World”.

• SCR had several meetings with decision makers during the DWIC

SCR was present at the Dubai World Insurance Congress (DWIC) organized at the Dubai International Financial Center (DIFC), which is considered as the main financial hub of the Middle East, Africa and South Asia region. During this event, SCR enriched its portfolio of International Client contacts, and create new business relationships while exploring new markets.

• Monte Carlo and Baden Baden: the two majors insurance rendez-Vous

Every year, SCR is present at the two key meetings of Insurance and Reinsurance, held in Monte Carlo in September and in Baden Baden in October. Once again, it was an opportunity for SCR to discuss the issues of the Market and to pursuie the negotiations related to business subscriptions and retrocessions. In addition to these two events, SCR seized the opportunity to expose its development plan to its partners and to express its views concerning the new insurance paradigms.

• SCR organized its second Inter-Insurance Football Tournament.

As part of its policy of developing its extra-professional activities, SCR organized, throughout the month of Ramadan 2018, the second edition of its Inter-Insurance Companies Football Tournament. For SCR, this tournament is also an opportunity to consolidate its brand image and to increase its openness towards

its internal as well as external collaborators. The conviviality and the good atmosphere were the key words of these meetings, which enforced the bonds between SCR football players and those of the various Insurance companies.

Structuring projects For overall performance

• STRONG II Transformation Plan

Launched by SCR in 2017, the STRONG II Transformation Plan has now reached maturity, with a rate progress of more than 80%. STRONG II is the realization of a global change that is involving all employees by mobilizing them for a better satisfaction of SCR customers.

This strategic plan is based on 4 pillars of actions:

• Future growth and visibility: Consolidation of SCR role and of its potential markets development, in Morocco and abroad.

• Technical expertise and risk management: Improved technical expertise within SCR and deployment of new risk management tools (ERM, ...)

• Operational excellence and customer satisfaction: Improving responsiveness and quality of service is one of the priorities of SCR. The objective is to optimize the different key business processes, to set up a service commitment repository and to promote the image of the company to the customers and partners.

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• Improvement of the management style and of the corporate culture: The success of the transformation plan is reachable through the development of the human capital, but also through the development of successful marketing strategies and management projects.

• The Procedures Manual reform

SCR has launched the “ Procedures Manual reform” mission, which is currently being finalized with the aim of capitalizing on the know-how of the employees.

• Application of the service commitment reference system

In order to better reinforce the trust of its customers and partners, SCR has set up a repository based on the deployment of DTS Document Tracking System modules for all the functions of the Customer relationship (underwriting, claims management, technical accounting, customer accounting...) and technical support functions as well as the automation of the Customer claims process.

• A barometer to measure the customer satisfaction To better meet the expectations of its customers

and partners and to improve the quality of its services, SCR has set up a customer satisfaction survey about:

- Calls for Tenders or quotations- The commercial negotiation- Business expertise- Management claims- Accounting and financial management- Administrative management

• Integration of the ERM tool

To better guide its underwriting and investment strategies, while optimally managing and modeling risks, SCR implemented the Enterprise Risk Management (ERM) tool. A new organization has been set up to strengthen the SAS ERM project teams. The overall progress rate of this project is 68%. So the current work is focused on:

- A “Build and configuration” phase, which corresponds to the implementation of the three batches of the Internal Data Quality Analysis solution and the external data quantification.

- Analysis and formalization with a calibration of the solutions.

• Draft SBR circular (risk-based solvency)

Focused on the edification of efficient governance and on requirements reports, the insurance and reinsurance industry will have to comply with the SBR.

With regard to the draft SBR circular, the Authority for Control and Social Welfare (ACAPS) launched the quantitative impact study 1 (EIQ1). This study aims at valuing the prudential balance sheets of the Companies and at collecting the market data for a better calibration of the CSR calculation parameters (new regulatory reference of the capital requirement). The current EIQ1 collection focuses on reported data and on the SBR balance sheet valuation (which is close to the solvency II balance sheet).

The return of the ACAPS results showed that the new framework leads to an increase in life commitments and economic capital, against a decrease in non-life commitments. For Catastrophe Risks, the deployment of the ArcGis solution as a SCR Geographic Information System has been finalized. A Level I training session was held from 18 to 20 July 2017, a second Level II training session was held from 22 to 24 January 2018, a Level III training for the use of the online portal took place from 5 as of February 7, 2018, and a final ArcGIS API for JavaScript training took place on March 23, 2018.

• Catastrophe Risks Project

Playing a decisive role in the implementation of Law 110-14 on catastrophe risks, the CRA helps to set up the mechanism and the management model of the regime with the Control Authority. SCR participated in a series of meetings with the Ministry of Finance and the World Bank for the advancement of this project. In parallel, a meeting of the Scientific and Technical Commission of the African Center for Catastrophic Risks was held in order to outline the main lines of future collaboration between the CARC and the members of the commission.

• Audit mission of technical provisions

An audit mission for the technical provisions approved on 31/12/2016 was carried out by an actuarial firm. The firm has described in its audit report the level of SCR provisioning as sufficient and as an acceptable margin of prudence. Another audit mission has been launched: it concerns the technical provisions closed on 31/12/2017.

• Information System: a performance lever for SCR

SCR has launched several information system projects that are similar to those of international standards. The company is now at the final stages of phases II & III of the RMS upgrade project, the main novelties of which are:

- The implementation of the DTS Dashboard for decision-making monitoring of DTS dashboards;

- The implementation of a new feature allowing the automated management of the Subscription Clause;

- The integration of contractual exchange rates into the accounting and reconciliation processes;

- The possibility of partial payments receivables with different currencies;

- Implementation of the reconciliation automation tool (validated pending deployment);

- Improvements to the “Imaging” document management module integrated into the system;

- The finalization of the Information System Security Audit mission in relation with the ISO 27 001 standard that made it possible to implement SCR Security SMSI;

- Implementation of the GIS System via the ArcGIS solution;

- The transition to production towards the new Sage FRP Treasury cash management solution;

- The launch of the project to implement an integrated management system covering functional areas: General Ledger & Analytics, Budget Management, Purchasing & Fixed Asset Management.

- Automation of the exploitation of operational activities according to the Document Tracking System (DTS) processing approach integrating workflow mechanisms.

This internally launched project is currently on its final stage. The functions already switched to production are:

- finance: reconciliation & technical bank- subscription to the Moroccan non-life market- optional technical support- technical support pricing- the legal: management of the security of

third parties- The virtualization and technical migration on

the outsourced Datacenter of the backup site platform servers for the start of the scheduled operation. This process will be done at the end of the year after stabilization of the LS link deployed by the telecom operator partner.

- The ongoing deployment of a reporting tool that allows the automation of recurring statements and end users extractions.

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Technical expertise for our partners

In 2017, SCR launched the "SCR ACADEMY RE" Foundation to ensure that it continues to meet the different requirements of the insurance and reinsurance market. This institution's mandate is to provide partners with its technical expertise on various sectors (fire, engineering, aviation, marine and civil liability), as well as on pricing, prevention and actuarial profession.

Such a program concerns both Moroccan and African clients companies, including SCR’s internal collaborators.

In 2018, the program of the “SCR ACADEMY RE” Foundation was particularly dynamic: it was delivered by experienced practitioners. It covered various specialized topics in the insurance and reinsurance sectors.

Thus, and to boost their gains in reinsurance, actuaries, but also underwriters and reinsurance managers found an opportunity to choose the most suitable seminar for their needs.

The topics of the 2018 training program of the “SCR ACADEMY RE” Foundation included:

• The subscription to proportional and non-proportional treaties

• The methods for entering proportional treaties and contracts

• The insurable Professional and Civil Liability (civil liability operation, civil liability after delivery, civil liability, AT, auto, etc. products)

• Insurable risks in digital transition

• Emerging risks

• Insurance and aviation reinsurance (technical and legal aspects).

In addition, other specific training in insurance and reinsurance were provided during 2018 in Abidjan, and also in Kenya. This included:

• The optimization of the reinsurance life insurance companies plan

• The reinsurance optimization injury program of insurance companies

SCR in 2018“SCR ACADEMY RE” FOUNDATION

WorkforceAt 31/12/2018, the total number of employees was 121, including 5 employees assigned to SCR representative offices in Africa.

Breakdown by business sectors

Underwriting Technology and ERM Operations Management Finance and support Regalian functions

RecruitmentThroughout 2018, SCR has pursued its program of recruiting new talent. This process aims to detect the best job profile, recruit the right person with the right skills at the right time. SCR has made a strategic decision to hire new candidates. As well, hiring new candidates comprises several steps, from identifying the need to completion. Special attention is paid to the integration of new recruits.

Breakdown of recruitment by business unit:

Underwriting Technology and ERM Audit and internal control Operations Management Organizations

TrainingBased on the valuation of human capital and its commitment to skills development, SCR rolled out several training programs in FY 2018 to augment employee skills.

The training program mainly focused on the business aspects of reinsurance, management and communication:

• SCR, in collaboration with the Chartered Insurance Institute and the London School of Insurance, organized the certification cycle for its subscribers in the Moroccan and international markets with the best international practices in terms of underwriting insurance and reinsurance.

SCR in 2018THE HUMAN CAPITAL POWER

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• SCR underwriters also received training on “optional reinsurance energy“. In 2018, the managerial training was oriented towards personal development and managerial culture. This training was also delivered to offer to SCR managers the best conditions to deepen and to consolidate their know-how.

The goal is to accompany the changes by:

• Training in the evaluation of the individual performances, but also on interview techniques, led by the Cabinet Dale Carnegie;

• Training in basic principles to be effective on the personal and professional shutters via holding workshops on the people’s effective 7 habits with Franklin Covey;

To succeed on the Transformation Plan project STRONG II, SCR has involved all of its employees in in-depth workshops, the results of which have been as follows:

• THE VALUES AXIS RELATED TO GROWTH AND VISIBILITY

1. Dare to decide2. Challenge for success3. Change for success

• VALUES AXIS RELATED TO THE OPERATIONAL EXCELLENCE AND CLIENT SATISFACTION

1. Build dynamically2. Build with optimism3. Cooperate in a team4. Mobilize to be creative

• VALUES AXIS RELATED TO CORPORATE CULTURE AND TYPES OF MANAGEMENT

1. Progress to the end2. Flourish in solidarity3. Progress with solidarity4. Harmonize our progress

• VALUES AXIS RELATED TO TECHNICAL EXPERTISE AND TO RISK MANAGEMENT

1. Demonstrate professionalism2. Demonstrate expertise

Real levers of individual and collective dynamism, the values that are emerging from the 4 axes of the STRONG II transformation plan can be summed up by formalizing these three actions:

• Succeed with the challenge• Convince through expertise• Build by Solidarity

SCR in 2018STRONG II TRANSFORMATION PLAN

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SCR goes greenSCR has joined the Finance Initiative of the United Nations Environment Program (UNEP FI). The company is also a signatory to the Principles for Sustainable Insurance (PSI) convention.

In addition, SCR has joined the United Nations Global Compact and the Principles for Responsible Investment developed under the United Nations Environment Program (UNEP FI).

These principles form a framework that allows the global insurance industry to integrate the various risks and opportunities related to environmental, social and governance (ESG) issues.

Adherence to these different conventions has several advantages for SCR:

• Publicly formalize our membership in order to establish responsible insurance, but also strengthen our ability to communicate and report in a transparent manner on our different issues;

• Benefit from the expertise and resources of UNEP and the United Nations on ESG issues, decision-making processes, policy development and scientific research ;

• Participate in UN events that are conducive to dialogue with governments and other stakeholders on ESG issues and management risks related to insurance;

• Access UNEP FI research, networks, events and services that cover ESG issues in the insurance, investment and banking businesses.

• Participate in the General Assembly of signatories

Donations and Contributions to the CDG Foundation and the AHLY Foundation

As during the previous years, SCR made its contribution in the form of direct financial donations or through social projects for the purpose of carrying out cultural and social projects:

• CDG Foundation: A recognized public utility association since its inception, it has been working to support solidarity and social actions and sustainable development, as well as projects that are promoting the cultural and the national historic heritage. The Foundation supports sport actions, as well as talents and vocations. It is also a support for science and for knowledge. Through its socially structuring actions, the CDG Foundation implements the CDG Group›s commitments of solidarity and social responsibility. Its action consists of:

- Sponsorship contributions that provide financial support for actions under different areas of intervention;

- Sponsorship donations by providing in-kind contributions through local or regional associations for targeted populations;

- A sponsorship program supporting skills by making the expertise of the CDG Group available to the associative fabric.

Core missions:

• Develop and support actions of solidarity, social & sustainable development and philanthropy;

• Support local and national development dynamics through the deployment of innovative partnerships;

• Work as a unifying lever for CDG Group's corporate actions.

• AHLY Foundation, created at the initiative of the CDG Foundation, it aims to help orphan minors.

The first beneficiaries were the children of the victims of the two tragic events that happened in 2008, namely the burning of the Lissasfa factory in Casablanca and the collapse of the Al Manal complex construction site in Kenitra.

SCR in 2018SOCIAL ENGAGEMENT

The financing of these actions is provided by the contribution of CDG Group senior management, through collective and voluntary solidarity.

• Financial Contribution’s Sponsorship: a citizen donation of computer equipment. SCR delegation and a representative of the CDG Foundation operated a donation of computer equipment for two educational institutions: the secondary school Jamal Eddine AL College AFGHANI and the TOUAMA High School, located in the rural side of Marrakech.

• Associative

Organization of the “Journées de la Finance” (Finance days) for the benefit of young students:

For the 4th consecutive year, SCR welcomed, in 2018, no less than 40 students from the secondary and primary cycles, as part of the finance days organized by the FMSAR for the benefit of the children and the youth. This initiative has allowed, beyond making finance and insurance popular, to interest and motivate this young population, mostly from disadvantaged families, to continue their education.

An internal mobilization of SCR employees to encourage blood donation:

SCR also regularly organizes internal blood donation campaigns to support the efforts of the Regional Blood Transfusion Center and to increase the blood quantity that is available in the Casablanca blood bank. The act of blood donating is indicative of the high moral sense of SCR employees: it helps to ensure the lives of hundreds of people who depend on the generosity and the compassion of their fellow citizens.

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Liberté Building • Casablanca

The international marketIn 2018, the global non-life insurance market grew by 3%, led mainly by emerging markets, with growth estimated at around 8%. With premiums up 12%, non-life activities in China and India were particularly dynamic. Agricultural insurance has been one of the main drivers of growth in these two countries.

In advanced economies, premiums increased by about 2% in 2018 driven by strong economic growth, particularly in North America. In the areas most affected by natural disasters in 2017, the rise in rates in the property and casualty business encouraged premium growth. However, lower premiums in the automotive sector in Japan and the United Kingdom had a negative impact on all advanced markets.

For its part, improving the profitability of the global non-life insurance sector was positively impacted by a recovery in rates of return. Signs of stronger technical results were also observed. In the United States, the results of property and casualty insurance activities in the first half of 2018 were significantly higher than those of the previous year. The overall combined ratio was 96.7% in the first half, down more than 4 points from the previous year.

P & C underwriting profit in the US was approximately $6 billion. It was, combined with stronger investment results that resulted from an industry ROE of 8.8 %. In Canada, underwriting results were deteriorated during the first half due to weather-related losses.

Profitability in Europe remained stable in the first two quarters of 2018 compared to 2017. Disaster- related losses led to a rise in the combined ratio in Germany. At the same time, Italy, Spain and the United Kingdom recorded gains thanks to better results in the automotive sector. In the global life insurance market, premium growth is estimated at 1.6% in 2018, which is slightly below the average annual growth rate of the last five years.

In the advanced markets, premiums have risen by about 1.7% while premium growth in emerging markets is likely to be much slower than usual. The contribution of emerging markets in accelerating the growth of global life insurance premiums is not

as significant as during the recent years, and for a good reason: China, which remains the driving force for growth in the life and health sectors, which is likely to experience a substantial -1.8% contraction in its life insurance premiums in 2018, as a result of stricter regulations.

Excluding China, growth in life insurance premiums in emerging markets is 5%. In terms of natural disasters, a study by the German reinsurer Munich Re estimates total losses in 2018 to be 160 billion dollars, a figure which remains far behind the 350 billions dollars recorded in 2017, but which is higher than the corrected average of inflation over the last 30 years which is 140 billion USD.

Insured losses are estimated at $80 billion and are well above the inflation-adjusted average of the last thirty years ($41 billion). However, they remain below the record level of 2017 (140 billion USD). The most costly natural disasters have occurred in the United States, including California. A forest fire generated $16.5 billion in overall losses and $12.5 billion in insured losses. For its part, Hurricane Michael caused an overall loss of $16 billion and $10 billion in insured losses. On the other hand, the persistent drought, which caused significant agricultural losses and forest fires, was the most expensive natural disaster on the European continent. Direct losses amounted to $3.9 billion...

...(€3.2 billion), of which only a small proportion has been insured.

Regarding the human toll, 10,400 people lost their lives in 2018 as a result of natural disasters. However, there has been a decrease from the average of 53,000 deaths recorded over the past 30 years. In 2018, the most deadly natural disaster was the seven- meter tsunami that struck the Indonesian city of Palu on September 28th following an earthquake. Thousands of buildings were destroyed and 210 people lost their lives.

Insurance andReinsurance Market

SECTORIAL CONTEXT

2322


National Market

The Moroccan insurance and reinsurance market recorded a premium volume of MAD 22.89 billion in the first half of 2018, with an increase of 10.3% compared to the same period of the previous year. The Life & Accumulation Division recorded a 17.2% increase, realizing a premium volume of MAD 9.51 billion against MAD 8.12 billion last year.

Non-life insurance, for its part, posted a growth rate of 5.9%, going from MAD 12.64 billion in the first half of 2017 to MAD 13.38 billion in the first half of 2018, driven mainly by an increase in the automotive branch of 5.8%, the latter represents 47.03% of total premiums in non-life insurance.

Reinsurance acceptances reached a premium volume of MAD 122.1 million compared to MAD 101.5 million in the first half of 2017, an increase of 20.30%. The company Wafa Assurance ranks first in terms of issues, with MAD 4.52 billion (against MAD 4.32 billion in June 2017, + 4.7%), or 19.7% of market share, followed by the company RMA WATANIA, which has a market share of 15% and MAD 3.44 billion of premiums written (against MAD 3.35 billion in the first half of 2017 + 2.6%), with Saham Assurance in third place with a market share of 12,1% and MAD 2.76 billion in revenue. Regarding the news of the insurance sector in 2018, and in the context of the Risk- Based Solvency project, ACAPS launched in July 2018 the first phase of quantitative impact studies with the collection of company data necessary to calculate parameters of the Solvency Capital Requirement formula and, on the other hand, the formulation of shock proposals to be applied for each type of risk.

The Pillar II of the circular is in the study phase. Regarding the Takaful Insurance Law, the draft law amendment is currently being approved by parliament.

On the other hand, FMSAR and ACAPS appealed to Grant Thornton to assist them with all the

accounting and tax aspects of this type of insurance. The implementing texts of the CRT and Decennial Insurance Act are also being validated. The sector has insisted on the obligation to produce the initial report of a control office before subscribing to an RCD contract.

With regard to the draft law on catastrophic events, all the implementing texts concerning it are being validated by the Treasury and External Finance Department. The general insurance circular for the introduction of the provisions of the accounting and financial system and the guarantee against the consequences of catastrophic events has been amended.

Life insurance companies have adopted the US extraterritorial law against FATCA (Foreign Account Tax Compliance Act) tax evasion. Deployment monitoring has been put in place. ACAPS has prepared a draft amendment to the circular on the AML / CFT mechanism, in line with FATF recommendations and feedback from the industry after 8 years of implementation, with the following key changes:

- Replacement of the threshold with an approach that takes into account client risk profiles, but also their size, the operations performed... ...by the company and the nature of the marketed products;

- Exclude personal injury insurance within the perimeter of the vigilance mechanism;

- Introduce the simplified vigilance system for property damage insurance;

- Strengthen accountability of the reporting entities network.

Regarding the system on approving insurance contracts, the deployment of preparatory steps to implement the draft instruction relating to Article 247 of Law No 17-99 on the Insurance Code is in progress. The same situation for the several other projects related to combating insurance frauds, particularly in the automotive sector.

ACAPS in partnership with GIZ, FMSAR and CNRA, has launched a study to design a national diagnosis for design inclusive insurance in Morocco.

As for mergers and acquisitions operated in the sector, the South African group SANLAM increased its stake in the capital of SAHAM group’s insurance subsidiaries to go from 46.6% to 100%.

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International economyIn the face of an international context marked by strong uncertainties related in particular to trade tensions, the normalization of monetary policies, the outcome of Brexit and the weakening of confidence on the financial markets, global economic activity continued to show signs of shortness of breath. In 2018, global growth was estimated at 3.7% by the IMF, despite the rather weak results recorded by some countries, particularly in Europe and Asia.

In the United States, expansion continued to be supported by the positive trend in economic activity, which posted growth of 3% in the third quarter of 2018, after 2.9% a quarter earlier. In the euro area, data for the fourth quarter showed a further slowdown in growth, which stood at 1.2% against 1.6%, reflecting a deceleration from 1.3% to 0.9% in France, from 0.6% to 0.1% in Italy and a stagnation of 2.4% in Spain. In Germany, growth data remained similar to those of the third quarter and indicate a deceleration to 1.2% after 2%.

On the other hand, and despite the uncertainties surrounding the Brexit terms, the United Kingdom recorded a growth of 1.5% in the third quarter after 1.4%, reflecting the improvement in household consumption and foreign demand. In Japan, growth registered a significant decline to 0.1% after 1.4%, following weak private investment and net exports. In the main emerging economies, China›s growth slowed for the third time in a row, to 6.4% in the fourth quarter after 6.5%, impacted by the intensification of the trade dispute with the United States.

Data for the third quarter of 2018 showed a drop in growth in India to 6.9% against 8%, mainly due to a slowdown in consumer spending. Growth also slowed in Russia, falling from 1.9% to 1.5%, partly due to the sharp contraction in agricultural production. On the other hand, in Brazil, growth accelerated to 1.3% after 0.9%, thanks to a revival of investment and an increase in public spending.

At the same time, the situation on the labor market continues to be broadly favorable in the main advanced countries. In the United States, the

vigor continued in December 2018, job creation increased significantly from 176,000 to 312,000 positions, their highest level on 10 months. However, the unemployment rate rose from 3.7% to 3.9%, reflecting the increase in the participation rate to its highest level since September 2017, or 63.1%. In the euro area, the unemployment rate remained stable at 7.9% in December.

In the United Kingdom, data available for the month of October 2018 indicated a slight decrease in the unemployment rate from 4.1% to 4.0%. At the stock market level, unemployment has been negatively impacted by the partial closure of the US federal government since December 22, after the failure of dealings in Congress on the financing of a wall on the Mexican border wanted by President Trump. The major stock market indices of the advanced and emerging countries recorded, between November and December, declines amounting to 5.8% for the Dow Jones industrials, to 4.3% for the Eurostoxx 50, 3.7% for the FSTE 100 and 4.6% for the Nikkei 225.

In the emerging economies, the MSCI EM fell by 1.1%, including declines of 1.4% and 1.2% respectively for the China and Turkey indices and an increase of 2.7% for India. For their part, the bond markets benefited from the context of rising risk aversion, as sovereign bond yields fell overall. Thus, for the main European economies, apart from Greece where it stagnated at 5%, the 10-year rate fell to 0.3% for Germany, 0.7% for France, 1.4% for Spain and 1.7% for Portugal.

For its part, the rate of 10-year US Treasury bills decreased from November to December from 3.1% to 2.8%. For the major emerging economies, the 10-year bond yield rate fell to 8.8% for Brazil, to 3.3 percent for China, and to 7.4% for India. It increased slightly to 16.5% for Turkey.

On the currency markets, the euro was stabilized at $1.14 between November and December. However, it appreciated by 2% against the pound sterling and, on the contrary, depreciated by 0.9% against the Japanese yen. For their part, the currencies of the main emerging countries have evolved differently from the dollar. Thus, the Indian rupee

The insurance and reinsurance market

THE ECONOMIC CONTEXT

appreciated by 1.4%, the Brazilian real depreciated by 2.7%, while the Turkish lira and the Chinese yuan remained stable, respectively at 5.3 pounds and 6, 9 yuan for a dollar.

On inflation, Eurostat›s first estimate for the month of December showed a deceleration in the euro area from 1.9% to 1.6%, with declines from 2.2% to 1.7% in Germany, from 1.7% to 1.2% in Spain, 1.6% to 1.2% in Italy and 2.2% to 1.9% in France. For the other major advanced economies, inflation slowed in December from 2.2% to 1.9% in the United States, from 2.3% to 2.1% in the United Kingdom and 0.9% to 0.3% in Japan.

At the level of emerging countries, inflation fell in December from 2.2% to 1.9% in China, from 4% to 3.7% in Brazil and from 2.3% to 2.2% in India. In Russia, it accelerated from 3.8% to 4.2%.

National Economy For the third quarter of 2018, the results of the quarterly national accounts showed a slowdown in growth to 3% after 3.9% in the same period of the previous year. Agricultural value added grew by 3.8% instead of 15%, while non-agricultural activities increased by 3% instead of 2.5%.

Due to a drop in the growth rate of non-subsidy taxes from 3.5% to 1.9%, non-agricultural GDP rose 2.8% after 2.6%. At the sectoral level, the fishing sector saw a year-on-year increase with a value added of 6.8% in the third quarter, following a 3% decline in the same quarter a year earlier. Excluding the primary sector, the value added of the processing industries improved by 2.9% in the third quarter instead of by 2.2% a year earlier, driven by the good performance of the textile and leather, chemical and parachemistry and mechanical and metallurgical industries.

For construction, the sluggishness continued, with a limited increase in its value added of 0.7% against 1.4%. In the electricity business, activity accelerated in the third quarter with an increase in value added of 7.5% after 1.2%. In the mining sector, activity decelerated sharply in the third quarter with a limited increase in value added of 4% instead of 19.2% a year earlier. The most recent data show a decline of 4.9%, during the two months of October and November, of the commercial production of

phosphate and a 7.6% decrease, of its export by volume. On the demand side, final consumption of households rose by 3.8% in the third quarter of 2018, compared to 2.4% in the same period of the previous year, and that of the general government by 2.3% after 1.7%.

Investment was up to 6.5% instead of a 1.4% decline a year earlier. In total, domestic demand improved by 4.3% compared to 1.2% contributing 4.7 percentage points to growth instead of 1.3 percentage points. On the other hand, the participation of external demand in growth was negative at 1.7 points against a positive contribution of 2.6 points.

In the labor market, 2018 was marked by the creation of 112,000 jobs, after 86,000 in 2017. Taking into account a net entry of 64,000 jobseekers, the participation rate returned from 46,7% to 46.2% and the unemployment rate fell, as a result, from 10.2% to 9.8% nationally, from 14.7% to 14.2% in the cities and from 4% to 3.5% in rural areas. With regard to foreign trade, provisional data for 2018 indicated a widening of the trade deficit compared to 2017 from MAD 16.4 billion to MAD 205.6 billion. This trend reflects an increase of MAD 42.2 billion or 9.6% in imports, higher than that of MAD 25.9 billion or 10.4% of exports. The coverage rate went from 56.8% to 57.2%. The increase in imports concerned all product groups. The energy bill increased by 18.3% to MAD 82.2 billion. Imports of capital goods rose 9.5% to MAD 119.8 billion, related to aircraft acquisitions and other air or space vehicles. Similarly, acquisitions of finished consumer goods rose by 7.9% to MAD 108.1 billion, following a 19.5% increase to MAD 17.4 billion of purchases of “parts and pieces for passenger cars.

Food products increased by 7.7% to MAD 45.8 billion, in connection with the 9.8% increase in the quantities of imported wheat.

On the export side, the increase affected all major sectors. Sales of phosphates and derivatives rose by 17% to MAD 51.7 billion, those of the automotive industry rose 10.7% to MAD 65 billion.

For their part, exports of the agricultural and agri- food sector rose by 6.8% to MAD 58.1 billion, and those of aeronautics increased by 13.9% to 13.9 billion. Similarly, sales of “textiles and leather” rose 4% to MAD 38.5 billion. Under these conditions and

2726


taking into account the trend of the other headings of the balance of payments, net international reserves fell by 4.1% compared to 2017 to 230.9 billion, representing the equivalent of 5 months and 4 days imports of goods and services.

Budget execution for 2018 showed a deficit of 41.4 billion dirhams, with an increase of 4.2 billion dirhams over 2017, and an exceeding of 8.1 billion dirhams compared to the 2018 budget law. Ordinary revenue improved by 1.8 percent to 259.8 billion.

Ordinary expenditure increased by 3.6% to 239.1 billion dirhams, mainly as a result of the 5.5% increase in expenditure on other goods and services, and the 15.6% increase of the compensation cost to 17.7 billion dirhams.

In the money market, the liquidity needs of banks eased in December 2018 to 69.9 billion dirhams on average, against 72.1 billion dirhams in November. In this context, the Bank reduced the volume of its advances to 7 days to 66 billions. Total outstanding amount of interventions amounted to MAD 69.4 billion.

In these conditions, the interbank rate stood at 2.28% on average, remaining close to the key rate. In the other markets, treasury bill rates did not change significantly in December 2018, both in the primary and secondary markets. At the same time, the rates of return for term deposits in December rose by 7 basis points to 2.80% for those at 6 months and 2 points to 3.04% for those at one year.

In terms of lending rates, the results of Bank Al-

Maghrib’s banking survey for the fourth quarter of 2018 showed a 29 basis point decrease in the overall average rate to 5.06%. In terms of the stock market, the MASI appreciated by 1.2% in December, reducing its under-performance throughout the year to 8.3%. Market capitalization decreased by 7.1% to 582.2 billion at the end of 2018, and the volume of transactions decreased by 24.4% to 52.7 billion dirhams, of which 18.2 billion dirhams during the month of December.

In the sovereign debt market, Treasury issues reached 14.4 billion dirhams in December, against 9.1 billion dirhams on average during the first eleven months of the year. Taking into account an amount of repayments of 10.5 billion dirhams, outstanding treasury bills amounted to 546.2 billion dirhams, an increase of 5.7% compared to December 2017. As for Private securities, issues of negotiable debt securities amounted to 1.2 billion dirhams in November, against 3.5 billion dirhams on average during the first ten months of the year. Taking into account the repayments, the outstanding amount of private debt stood at 166.8 billion dirhams, down to 6.1%. Regarding inflation, it fell from 1.3% in November to 0.1% in December. This deceleration is attributable to the steep decline on volatile food prices by 7.6% after 1% and the 5.1% drop in fuel and lubricant prices, compared with a 4.4% increase. For the whole of 2018, inflation stands at 1.9% against 0.7% in 2017.

2928


Financial PerformanceFINANCIAL AND GENERAL

MANAGEMENT AS OF DECEMBER 31, 2018

1-PlacementsBased on the book value of the investment portfolio, excluding deposits with ceding companies, the placements amounted to MAD 10,167.72 million as of December 31, 2018, compared to MAD 10,684.31 million recorded for FY 2018 . This decrease is explained by the liquidation of the Legal Transfer and the Gentlemen Agreement, as well as by the impact of the State’s payment done during 2016 and 2017, with no less than MAD 261.96 million.

2-Investment incomeExcluding interest from ceding companies, the investment income amounted to MAD 448.64 million December 31, 2018, down to MAD 273.39 million compared to the income generated at the end of 2017. This decrease is related mainly to the decrease recorded on the item “profits on realization of investments”.

3-OverheadsGeneral expenses, including those related to property management and excluding depreciation and provisions, amounted in December 2018 to MAD 114.85 million, versus 111.23 million in 2017, showing an increase of MAD 3.62 million or 3.25%, mainly related to “Employees Expenses”.

4-Excess of general and financial managementThe general and financial management account amounted to MAD 250.37 million against MAD 599.1 million recorded at the end of 2017, a decrease of MAD 345.73 million, which is explained partly by the fall recorded in 2018 on net profits, but also on investment achievements and on investment expenses.

5-Net result Taking into account the corporation tax of MAD 98.85 million, the net profit generated during FY 2018 amounted to MAD 300.13 million against MAD 491.96 million the previous year, a decrease of MAD 191.83 million or 38.99%.

General reportof the Statutory Auditors

3130


Financial PerformanceTHE GENERAL ASSEMBLY’S

RESOLUTIONS - FRIDAY, APRIL 19, 2019

FIRST RESOLUTIONThe AGM ratifies the terms and the conditions of the meeting convened by the Board of Directors in substance and in form, and considers it valid in all its effects. It gives the board president final discharge.

SECOND RESOLUTION The General Assembly, having heard the reading of the management report of the Board of Directors for FY 2018, approves the said report in all the parts without any reserve.

THIRD RESOLUTIONAfter hearing the Statutory Auditors› reports on the transactions operated during the 2018 financial year, the General Assembly approves the summary statements drawn up on 31/12/2018 as presented to it, highlighting a net profit of MAD 300,130,995.90.

FOURTH RESOLUTION The General Assembly approves the allocation of results proposed by the Board of Directors, namely:

Net profit 300.130.995,90 DHNet profit to be allocated 300,130,995,90 DHLegal reserve of 5% 0,00 DHSpecial guarantee reserve of 10% 30.013.099,59 DHReliquat 270.117.896,31 DHDividend of 5% 75.000.000,00 DHReliquat to be allocated 195.117.896,31 DHState share 97.558.948,16 DHRest after share of the state 97.558.948,15 DHReport again 2017 90.970, 45 DHA total of 97,649,918.60 DH to be distributedSuperdividends 65.000.000,00 DHOptional reserves 32,549.972,90 DHReport again 2018 99.945,70 DH

The General Assembly decides to distribute the dividends for the financial year 2018 as from September 1st, 2019.

FIFTH RESOLUTIONThe AGM, having heard the reading of the special report of the auditors, on the agreements falling under articles 56 et seq Of the Companies Act, approves the agreements mentioned therein.

SIXTH RESOLUTIONThe AGM confers on the Board of Directors members, definitive and unreserved discharge for their management during the financial year for which the accounts have been approved above.

SEVENTH RESOLUTIONThe AGM appointed as Statutory Auditors, for a period of three years (corresponding to the years 2019, 2020 and 2021):

• The firm DELOITTE represented by Mr. Fawzi BRITEL residing at La Marina Casablanca - Building C / Ivory III -Bd Sidi Mohammed Ben Abdellah Casablanca;

• COOPER’S AUDIT MAROC Cabinet represented by Mr. Abdelaziz ALMECHATT residing at 83, Avenue Hassan II - Casablanca;

It gives all powers to the Chairman to fix with the statutory auditors the amount of their annual fees.

EIGHTH RESOLUTION The AGM appoints Safaa TALBI as a director on the Board of Directors of Société Centrale de Réassurance (SCR), to replace Mr. Nouamane AL AISSAMI.

The term of office of Mrs. Safaa TALBI will expire at the AGM which will be called to approve the financial statements for the year ended 31/12/2023.

NINTH RESOLUTIONThe AGM decides to allocate to the Board of Directors for the 2018 financial year, a gross sum fixed at MAD 160,000 as directors’ fees. It leaves it to the administrators to distribute this amount among them.

TENTH RESOLUTION The AGM grants full powers to the bearer of the original or a copy, for the purposes of advertising or other formalities required by law.

3332


Premiums issued

Balance sheet total Gross technical provisions

Own funds and similarAffected investments

ROE after taxNet profit

Financial PerformanceKEY FIGURES AT 31/12/2018

Financial PerformanceSCR’S REGIONAL RANK

Ranking of Arab Reinsurers by premiums written (net of disposals)

Ranking of African Reinsurers by premiums written (net of disposals)

Ranking of African Reinsurers by ROE before taxes

2017 Annual Reports of Companies and “Global Reinsurer Highlights 2018”, S & P

Country Subscribed Premiums2017 Disposal net (in thousands of US dollars)

Trust Re Bahrain 533 400

Saudi Re Saudi Arabia 262 757

Compagnie Centrale de Réassurance Algeria 256 282

ARIG Bahrain 225 632

Société Centrale de Réassurance Morocco 215 580

Kuwait Re Kuwait 116 123

Arab Re Lebanon 64 013

Tunis Re Tunisia 48 984

Oman Re Oman 32 196

Country Subscribed Premiums2017 Disposal net (in thousands of US dollars)

Africa Re Nigeria 746 829

Compagnie Centrale de Réassurance Algeria 256 282

Société Centrale de Réassurance Morocco 215 580

Zep Re (PTA Re) Kenya 152 132

Kenya Re Kenya 144 952

CICA-Re Togo 84 629

Continental Re Nigeria 83 382

Waica Re Sierra Leone 62 119

Tunis Re Tunisia 48 984

Ghana Re Ghana 42 518

Country R.O.E 2017

GHANA RE Ghana 18,61%

CONTINENTAL RE Nigeria 15,81%

KENYA RE Kenya 13,62%

AFRICA RE Nigeria 12,34%

SCR Morocco 11,38%

CCR Algeria 11,17%

ZEP-RE (PTA RE) Kenya 9,65%

TUNIS RE Tunisia 8,31%

3534


For FY 2018, FY stood at MAD 2,023.85 million against MAD 2,013.77 million achieved in 2017, thus recording an increase of MAD 10.07 million, ie + 0.5%. This slight increase is mainly due to an improvement in Moroccan conventional business.

Revenue is broken down by type of business as follows:

Sales by type of activity 2017-2018 (in MDH)

Legal assignment

Moroccan conventional business

Foreign conventional affairs

Total bonuses accepted

Revenue’s distribution

Statutory assignments Moroccan Conventional business International conventional business

1. Moroccan affairs

1.1 Legal affairs

The volume of premiums stood, at the end of December 2018, at MAD 71.38 million against MAD 64.93 milliion for the same period of 2017, showing an increase of MAD 6.45 million or 10%.

1.2 Moroccan conventional business

1.2.1. Moroccan processed affairs

The premium volume of Moroccan business (treaties) rose from MAD 754.89 million at the end of December 2017 to MAD 751.52 million in December 2018, showing a slight decrease of 0.4%.

• Treaties including Moroccan Gentlemen Agreement: The premiums generated by the GA Treaties concluded with Moroccan ceding companies amounted to MAD 544.42 million at the end of December 2018, against MAD 528.04 million a year earlier.

• Treaties excluding Moroccan Gentlemen Agreement: The amount of premiums showed a drop of MAD 19.75 million, from MAD 226.85 million in December 2017 to MAD 207.10 million at the end of FY 2018.

TECHNICAL MANAGEMENT AS OF DECEMBER 31, 2018

1.2.2. Moroccan Optional Business

At the end FY 2018 financial year, the amount of premiums accepted increased from MAD 727.22 million at the end of December 2017, to MAD 756.96 million (an increase of 4.09%).

2. Foreign Conventional AffairsAt the end of December 2018, the volume of foreign business premiums amounted to MAD 443.98 million, compared to the MAD 466.73 million recorded at the same period of 2017, showing a 4.9% decline.

Conventional business in Morocco during 2018

Treaty Facultative

Conventional foreign affairs during 2018

Treaty Facultative

Production is divided between business and conventional as follows:

3736


BALANCE SHEET as of 31/12/2018 (In MAD)

ASSETS YEAR PREVIOUS YEARB R U T DEPR & PROV NET NET

FIXED ASSETS 11 121 387 493,27 810 053 829,59 10 311 333 663,68 10 403 064 091,31NON VALUE ASSETS 267 286,20 141 425,48 125 860,72 479 317,96Preliminary expensesExpenses to be spread over multiple years 267 286,20 141 425,48 125 860,72 479 317,96Premium Reimbursement of bondsINTANGIBLE ASSETS 28 792 347,06 17 555 888,04 11 236 459,02 11 032 662,07Research and development assetsPatents,Trademarks, Rights & Similar Values 28 792 347,06 17 555 888,04 11 236 459,02 10 994 925,07GoodwillOther intangible assets 37 737,00TANGIBLE ASSETS 42 675 864,43 37 278 644,44 5 397 219,99 6 443 363,61Real EstateConstructionsTechnical installations, equipment and toolsTransport Equipment 205 357,00 146 527,91 58 829,09 78 027,32Furniture & Office Fixtures and Fittings 42 470 507,43 37 132 116,53 5 338 390,90 6 341 190,79Other Tangible Assets 24 145,50FINANCIAL ASSETS 10 498 969,52 297 787,52 10 201 182,00 10 887 169,32Mortgage 10 351 323,80 297 787,52 10 053 536,28 10 779 777,78Other Financial Receivables 147 645,72 147 645,72 107 391,54Equity SecuritiesOther shares & stocksINVESTMENTS ALLOCATED TO REINSURANCE OPERATIONS 11 039 153 026,06 754 780 084,11 10 284 372 941,95 10 373 821 328,43Real Estate Investments 256 031 319,82 197 582 986,93 58 448 332,89 61 659 647,27Bonds and Negotiable Securities 2 927 043 960,22 2 927 043 960,22 3 338 819 366,67Stocks and Shares 6 657 306 351,35 555 991 266,23 6 101 315 085,12 5 877 245 360,51Loans and Similar Items 9 438 662,17 1 205 830,95 8 232 831,22 7 825 296,23Unavailable deposits 174 614 279,44 174 614 279,44 164 645 309,44Investments allocated to unit -linked contractsDeposits with Cedants 1 014 718 453,06 1 014 718 453,06 923 626 348,31Other InvestmentsADJUSTMENT IN CONVERSION OF ASSETS 340 250,00Decrease in Real Estate Receivables and Investments 340 250,00Increase in Financing and Technical ReservesCURRENT ASSET (excluding cash) 4 737 891 146,87 268 968 377,51 4 468 922 769,36 3 344 684 310,76RETROCESSIONNAIRES’ SHARE INTECHNICAL PROVISIONS 2 775 940 037,00 1 605 873,86 2 774 334 163,14 1 856 261 856,01

Provisions for Unearned Premium 469 121 727,00 469 121 727,00 404 529 954,00Provisions for Outstanding Claims 2 242 030 687,00 1 605 873,86 2 240 424 813,14 1 416 920 614,01Provisions for Life InsuranceOther Technical Reserves 64 787 623,00 64 787 623,00 34 811 288,00CURRENT ASSETS RECEIVABLES 1 901 163 608,02 267 362 503,65 1 633 801 104,37 1 437 457 510,30Assignees and Related Accounts Receivable 288 780 191,19 91 728 156,80 197 052 034,39 169 217 421,02Receivables from Inward or Outward Reinsurance Operations 1 315 604 761,53 161 286 798,01 1 154 317 963,52 974 786 949,19Receivables from Employees 150 386,99 150 386,99 140 058,93Receivables from the Government 185 525 420,56 185 525 420,56 192 988 030,80Receivables from AssociatesOther Debtors 20 512 818,84 14 347 548,84 6 165 270,00 5 524 371,42Accruals - Assets 90 590 028,91 90 590 028,91 94 800 678,94INVESTMENT SECURITIES (not allocated to reinsurance operations)CHANGE IN TRANSLATION (CURRENT ASSETS ADJUSTMENTS ) 60 787 501,85 60 787 501,85 50 964 944,45

CASH 143 278 744,82 143 278 744,82 545 216 178,80CASH - ASSETS 143 278 744,82 143 278 744,82 545 216 178,80Checks and Cash Values 13 533,90 13 533,90 13 533,90Bank Deposits and Postal Checks 143 209 366,98 143 209 366,98 545 182 644,90Cash, Imprest Accounts and Letters of Credit 55 843,94 55 843,94 20 000,00TOTAL 16 002 557 384,96 1 079 022 207,10 14 923 535 177,86 14 292 904 580,95

BALANCE SHEET as of 31/12/2018 (In MAD)

LIABILTIES YEAR PREVIOUS YEARPERMANENT FINANCING 13 472 440 504,49 12 989 070 984,86SHAREHOLDER’S EQUITY 2 447 233 415,26 2 619 066 796,09Capital Stock 1 500 000 000,00 1 500 000 000,00To deduct: Shareholders, subscribed capital but not called upCalled up Capital (not paid)Premium of Issue, Merger, ContributionTranslation adjustmentLegal reserves 150 000 000,00 150 000 000,00Other Reserves 497 011 448,91 476 779 377,74Balance Carried Forward 90 970,45 322 939,31Net Income to be AllocatedNet Income 300 130 995,90 491 964 479,04RELATED EQUITY CAPITALRegulated ProvisionsFINANCING DEBTS 2 130 895,23 1 964 027,77Bond issueSettlement funds borrowingOther Financing Debt 2 130 895,23 1 964 027,77DURABLE PROVISIONS FOR RISKS AND COSTS 17 681 120,00 16 340 250,00Provisions for Risks 1 681 120,00 340 250,00Provisions for Costs 16 000 000,00 16 000 000,00GROSS TECHNICAL RESERVES - COMPULSORY BUSINESS 4 150 367 026,64 4 513 731 959,64Provisions for Unearned PremiumProvisions for Outstanding Losses 1 772 144 428,00 2 043 694 186,00Provisions for Life Insurance 2 373 850 916,00 2 465 358 167,00Provisions for Claims FluctuationsProvisions for financial hazardsTechnical Provisions for unit-linked contractsProvisions for Profit SharingTechnical Provisions for Investments 3 838 124,64 3 838 124,64Other Technical Provisions 533 558,00 841 482,00GROSS TECHNICAL PROVISIONS FOR CONVENTIONAL BUSINESS 6 853 346 927,36 5 837 583 481,36Provisions for Unearned Premium 395 908 784,00 393 836 385,00Provisions for Outstanding Losses 5 780 513 659,00 4 878 960 004,00Provisions for Life Insurance 132 538 225,00 136 321 306,00Provisions for Claims Fluctuations 91 130 143,00 86 530 449,00Provisions for financial hazardsTechnical Provisions for unit-linked contractsProvisions for Profit SharingTechnical Provisions for Investments 1 197 521,36 1 197 521,36Other Technical Provisions 452 058 595,00 340 737 816,00TRANSLATION ADJUSTMENT- LIABILITIES 1 681 120,00 384 470,00Increase in Fixed Assets and Investing Receivables 1 681 120,00 384 470,00Decrease of Debt Financing and Technical ReservesCURRENT LIABILITIES (excluding cash) 1 451 094 673,37 1 303 833 596,09DEBT FROM CASH RECEIVED FROM RETROCESSIONNAIRES 134 807 964,74 102 059 861,30Debt from Cash Received from Retrocessionnaires 134 807 964,74 102 059 861,30CURRENT LIABILITIES 1 228 376 832,14 1 124 270 767,58Assignees and Related Accounts Receivable 339 983 257,56 354 307 041,17Debt from Inward and Retrocession Operations 690 262 904,52 505 026 722,17Debt to Employees 9 848 917,88 7 674 834,09Debt to Social Organisations 5 035 987,52 4 703 864,94Debt to the Government 122 331 421,38 186 322 644,20Debt to Associates 6 973 966,77Other Debtors 23 422 489,45 20 498 882,57Liabilities - Accruals 37 491 853,83 38 762 811,67OTHER PROVISIONS FOR RISKS AND COSTS 60 787 501,84 50 964 944,45TRANSLATION ADJUSTMENTS - CURRENT LIABILITIES 27 122 374,65 26 538 022,76CASH LIABILITIESCASH LIABILITIESTOTAL 14 923 535 177,86 14 292 904 580,95

3938


PRODUCTS ACCOUNT AND TECHNICAL EXPENSES (CPC) As of 31/12/2018 (in MAD)

ITEMSYEAR 2018

YEAR 2017GROSS RETROCESSION NET

1.PREMIUM 1 598 100 954,34 694 962 824,11 903 138 130,23 1 198 838 423,15Written premium 1 600 173 353,34 759 554 597,11 840 618 756,23 997 897 665,15Provision variation for unearned premium 2 072 399,00 64 591 773,00 -62 519 374,00 -200 940 758,002.TECHNICAL OPERATING REVENUE 100 507 675,13 100 507 675,13 76 427 271,75Operating subsidiesOther operating revenue 2 845 172,74 2 845 172,74 3 115 853,12Operating write-backs, expense transfers 97 662 502,39 97 662 502,39 73 311 418,633.SERVICES AND COSTS 1 978 010 008,65 1 192 761 683,27 785 248 325,38 1 169 942 973,77Paid services and costs 1 327 683 894,65 376 750 681,27 950 933 213,38 1 475 438 919,77Provision variation for incurred claims 630 003 897,00 786 034 667,00 -156 030 770,00 -221 015 062,00Provision variation for life insurance -95 290 332,00 -95 290 332,00 -242 650 640,00Provision variation for claims fluctuation 4 599 694,00 4 599 694,00 -1 630 139,00Provision variation for financial contingenciesProvision variation for profit sharingVariation for other technical provisions 111 012 855,00 29 976 335,00 81 036 520,00 159 799 895,004.TECHNICAL OPERATING COSTS 205 203 638,87 205 203 638,87 187 017 661,79Contract acquisition costsCost of supplies and consumable materials 332 170,56 332 170,56 308 308,27Other external costs 36 164 941,54 36 164 941,54 36 359 933,14Taxes and duties 8 603 124,74 8 603 124,74 8 763 498,51Personnel expenses 60 793 088,97 60 793 088,97 56 462 739,92Other operating costs 322 080,26 322 080,26 342 825,19Operating allowances 98 988 232,80 98 988 232,80 84 780 356,765.INVESTMENT REVENUE ALLOCATED TO REINSURANCE

OPERATIONS 544 011 286,35 544 011 286,35 1 034 635 671,66

Investment revenue 317 477 334,45 317 477 334,45 341 494 042,40Foreign exchange gain 18 389 951,40 18 389 951,40 12 631 824,39

Income from differences on refund price to collect 653 805,99 653 805,99 637 823,16

Profit on investment 172 516 931,31 172 516 931,31 450 988 944,42Profits from investment re-evaluationInterest and other investment revenue 6 336 134,81 6 336 134,81 4 973 537,83Release to investment costs and transfer of expenses 28 637 128,39 28 637 128,39 223 909 499,466.INVESTMENT COSTS ALLOCATED TO REINSURANCE

OPERATIONS 156 151 467,38 156 151 467,38 289 504 341,88

Interest paymentsInvestment management fees 18 052 691,39 18 052 691,39 13 014 495,44Exchange losses 13 449 942,63 13 449 942,63 29 256 165,34Depreciation of reimbursement price difference 4 862 959,50 4 862 959,50 8 597 528,30Losses on relaization of investment 23 935 017,27 23 935 017,27 49 510 781,42Losses from investment re-evaluationOther investment costsInvestment allocations 95 850 856,59 95 850 856,59 189 125 371,38TECHNICAL RESULT (1+2-3-4+5-6) -96 745 199,08 -497 798 859,16 401 053 660,08 663 436 389,12

PRODUCT ACCOUNTS AND EXPENSES RECAPITULATION (CPC) As of 31/12/2018 (in MAD)

PRODUCTS ACCOUNT AND NON TECHNICAL EXPENSES (CPC) As of 31/12/2018 (in MAD)

ITEMSOPERATIONS TOTAL

YEAR 2018 YEAR 2017YEAR PREVIOUS YEAR

1.NON TECHNICAL CURRENT REVENUENon-Technical Current Operating RevenueInterest and Other Non-Technical Current RevenueOther Non-Technical Current RevenueNon-Technical Release , Transfer of Costs2.NON TECHNICAL CURRENT EXPENSES 6 392 241,26 6 392 241,26 5 604 917,77Non-Technical Current ExpensesNon-Technical Current Financial CostsOther Non-Technical Current ExpensesNon-Technical Allowances 6 392 241,26 6 392 241,26 5 604 917,77NON TECHNICAL NON CURRENT REVENUE (1-2 ) -6 392 241,26 -6 392 241,26 -5 604 917,773.NON TECHNICAL NON CURRENT REVENUE 10 033,72 6 221 121,90 6 231 155,62 5 922 085,52Revenue from Cessions of Long Term Assets 59 536,00Balance subsidiesOther Non-Current Revenue 10 033,72 6 221 121,90 6 231 155,62 5 862 549,52Long Term Release , Transfer of Costs4.NON TECHNICAL NON CURRENT EXPENSES 757 431,12 1 153 910,42 1 911 341,54 7 533 904,83Net Value of Depreciation of Long Term Assets 1 061 664,35Granted SubsidiesOther Non-Current Expenses 459 643,60 1 153 910,42 1 613 554,02 2 472 240,48Non-Current Allowances 297 787,52 297 787,52 4 000 000,00Tax Refunds and Rebates on IncomeNON TECHNICAL NON CURRENT INCOME (3-4) -747 397,40 5 067 211,48 4 319 814,08 -1 611 819,31NON TECHNICAL INCOME (1-2+3-4) -7 139 638,66 5 067 211,48 -2 072 427,18 -7 216 737,08

YEAR 2018 YEAR 2017TECHNICAL LIFE INSURANCE RESULT 60 372 167,19 195 090 551,42TECHNICAL NON LIFE INSURANCE RESULT 340 681 492,89 468 345 837,70TOTAL TECHNICAL RESULT 401 053 660,08 663 436 389,12NON TECHNICAL RESULT -2 072 427,18 -7 216 737,08RESULT BEFORE TAXES 398 981 232,90 656 219 652,04INCOME TAX 98 850 237,00 164 255 173,00NET RESULT 300 130 995,90 491 964 479,04TOTAL LIFE INSURANCE REVENUE 291 166 124,32 506 137 082,59TOTAL NON LIFE INSURANCE REVENUE 1 256 490 967,39 1 803 764 283,97TOTAL TECHNICAL REVENUE 1 547 657 091,71 2 309 901 366,56TOTAL NON TECHNICAL REVENUE 6 231 155,62 5 922 085,52TOTAL DES PRODUITS 1 553 888 247,33 2 315 823 452,08TOTAL LIFE INSURANCE COSTS 230 793 957,13 311 046 531,17TOTAL NON LIFE INSURANCE COSTS 915 809 474,50 1 335 418 446,27TOTAL TECHNICAL COSTS 1 146 603 431,63 1 646 464 977,44TOTAL NON TECHNICAL COSTS 8 303 582,80 13 138 822,60INCOME TAX 98 850 237,00 164 255 173,00TOTAL EXPENSES 1 253 757 251,43 1 823 858 973,04NET PROFIT 300 130 995,90 491 964 479,04

4140


PRODUCTS ACCOUNT AND TECHNICAL LEGAL AFFAIRS EXPENSES (CPC) As of 31/12/2018 (in MAD)

ITEMSYEAR 2018


1.PREMIUM 60 227 327,20 60 227 327,20 57 496 459,98Written Premium 60 227 327,20 60 227 327,20 55 185 925,98Variation of Provisions for Unearned Premium -2 310 534,002.TECHNICAL OPERATING REVENUETechnical Operating RevenueAllowance to Operations and Transfer of Expenses3.SERVICES AND EXPENSES -117 964 942,99 -4 724 163,83 -113 240 779,16 63 410 606,35Paid Services and Expenses 245 399 990,01 -26 629,83 245 426 619,84 554 599 528,35Variation of Provisions for Claims Incurred -271 549 758,00 -4 442 893,00 -267 106 865,00 -303 783 178,00Variation of Provisions for Life Insurance -91 507 251,00 -91 507 251,00 -187 599 285,00Variation of Provisions for Claims FluctuationsVariation of Provisions for Financial HazardsVariation of Provisions for Profit SharingVariation of Other Technical Provisions -307 924,00 -254 641,00 -53 283,00 193 541,004.TECHNICAL OPERATING COSTS 8 306 599,00 8 306 599,00 4 018 533,37Contract Acquisition CostsConsumed Materials and Furniture 11 534,18Other External Costs 3 037 891,00 3 037 891,00 1 506 510,84Taxes and Duties 336 508,00 336 508,00 293 594,60Employees Costs 4 707 377,00 4 707 377,00 2 206 893,75Other Operating Costs 224 823,00 224 823,00Operating Allowances5.INVESTMENT REVENUE ALLOCATED TO REINSURANCE

OPERATIONS 245 812 596,35 245 812 596,35 588 493 345,47

Investment Revenue 200 352 366,62 200 352 366,62 217 905 163,29Foreign Exchange GainRevenue from variations of reimbursement due 653 805,99 653 805,99 637 823,16Profits on Investments 32 578 491,30 32 578 491,30 221 157 022,84Interest and Other Investment RevenueRelease to Investment Costs and Transfer of Expenses 12 227 932,44 12 227 932,44 148 793 336,186.INVESTMENT COSTS ALLOCATED TO REINSURANCE

OPERATIONS 59 093 037,04 59 093 037,04 40 503 937,84

Interest ExpensesInvestment Management Fees 8 018 873,39 8 018 873,39 2 300 285,12Foreign Exchange LossDepreciation of Variations on Reimbursement 3 430 743,09 3 430 743,09 6 878 022,64Loss from reevaluation of investments 14 935 017,27 14 935 017,27 31 325 630,08Other Investment CostsInvestment Allowances 32 708 403,29 32 708 403,29TECHNICAL RESULT (1+2-3-4+5-6) 356 605 230,50 4 724 163,83 351 881 066,67 538 056 727,89

PRODUCTS ACCOUNT AND TECHNICAL CONVENTIONAL BUSINESS ACCOUNTS (CPC) As of 31/12/2018 (in MAD)

ITEMSYEAR 2018


1.PREMIUM 1 537 873 627,14 694 962 824,11 842 910 803,03 1 141 341 963,17Written Premium 1 539 946 026,14 759 554 597,11 780 391 429,03 942 711 739,17Variation of Provisions for Unearned Premium 2 072 399,00 64 591 773,00 -62 519 374,00 -198 630 224,002.TECHNICAL OPERATING REVENUE 100 507 675,13 100 507 675,13 76 427 271,75Technical Operating Revenue 2 845 172,74 2 845 172,74 3 115 853,12Allowance to Operations and Transfer of Expenses 97 662 502,39 97 662 502,39 73 311 418,633.ALLOWANCE & COSTS 2 095 974 951,64 1 197 485 847,10 898 489 104,54 1 106 532 367,42Paid Services and Costs 1 082 283 904,64 376 777 311,10 705 506 593,54 920 839 391,42Variation of Provisions for Claims Incurred 901 553 655,00 790 477 560,00 111 076 095,00 82 768 116,00Variation of Provisions for Life Insurance -3 783 081,00 -3 783 081,00 -55 051 355,00Variation of Provisions for Claims Fluctuations 4 599 694,00 4 599 694,00 -1 630 139,00Variation of Provisions for Financial HazardsVariation of Provisions for Profit SharingVariation of Other Technical Provisions 111 320 779,00 30 230 976,00 81 089 803,00 159 606 354,004.TECHNICAL OPERATING COSTS 196 897 039,87 196 897 039,87 182 999 128,42Contract Acquisition CostsConsumed Materials and Furniture 332 170,56 332 170,56 296 774,09Other External Costs 33 127 050,54 33 127 050,54 34 853 422,30Taxes and Duties 8 266 616,74 8 266 616,74 8 469 903,91Employees Costs 56 085 711,97 56 085 711,97 54 255 846,17Other Operating Costs 97 257,26 97 257,26 342 825,19Operating Allowances 98 988 232,80 98 988 232,80 84 780 356,765.INVESTMENT REVENUE ALLOCATED TO REINSURANCE

OPERATIONS 298 198 690,00 298 198 690,00 446 142 326,19

Investment Revenue 117 124 967,83 117 124 967,83 123 588 879,11Foreign Exchange Gain 18 389 951,40 18 389 951,40 12 631 824,39Revenue from variations of reimbursement dueProfits on Investments 139 938 440,01 139 938 440,01 229 831 921,58Interest and Other Investment Revenue 6 336 134,81 6 336 134,81 4 973 537,83Release to Investment Costs and Transfer of Expenses 16 409 195,95 16 409 195,95 75 116 163,286.INVESTMENT COSTS ALLOCATED TO REINSURANCE

OPERATIONS 97 058 430,34 97 058 430,34 249 000 404,04

Interest ExpensesInvestment Management Fees 10 033 818,00 10 033 818,00 10 714 210,32Foreign Exchange Loss 13 449 942,63 13 449 942,63 29 256 165,34Depreciation of Variations on Reimbursement 1 432 216,41 1 432 216,41 1 719 505,66Loss on investments 9 000 000,00 9 000 000,00 18 185 151,34Other Investment CostsInvestment Allowances 63 142 453,30 63 142 453,30 189 125 371,38RESULTAT TECHNIQUE (1+2-3-4+5-6) -453 350 429,58 -502 523 022,99 49 172 593,41 125 379 661,23

42

ANNUAL REPORT 2018

Tribute to CasablancaWe would like to thank CASA MEMOIRE for its kind participation

Photos : Béatrice Germain

Documents

SCR · SCR has continued to support the development of the Arab-African Reinsurance Market, while strengthening its proximity with its clients and partners. By pursuing a deeply client-focused