STRATEGIC transformation PLAN stronG IIPAGE4 - RAPPORT ANNUEL 2016 STRONG IIPLAN DE TRANSFORMATION SUMMARY. PAGE5 A CREATIVE VISION ... Coopers Audit Morocco - ANNUAL REPORT 2016 1

GROW

TH A

ND F

UTUR

E

VISI

BILI

TY

GROWTH AND FUTURE

VISIBILITY

TECH

NICA

L EX

PERT

ISE

AND

RISK

MAN

AGEM

ENT

TECHNICAL EXPERTISE AND RISK

MANAGEM

EN

CORP

ORAT

E CU

LTUR

E AN

D M

ANAG

EMEN

T

MOD

E IM

PROV

EMEN

T

CORPORATE CULTURE AND MANAGEM

ENT

MODE IM

PROVEMENT

OPER

ATIO

NAL

EXCE

LLEN

CE A

ND

CUST

OMER

SAT

ISFA

CTIO

N

OPERATIONAL EXCELLENCE AND

CUSTOMER SATISFACTION

ANNUaL report 2016 société centrale de réassurance

r é s i l i e n c e b u i l d e r s i n c e 1 9 6 0

S T R A T E G I C t r a n s f o r m a t i o n P L A N

s t r o n G I I

STRONG IIPLAN DE TRANSFORMATION



RAPPORT ANNUEL 2016

HIS MAJESTY MOHAMMED VI, KING OF MOROCCOMAY GOD GLORIFY HIM

RAPPORT ANNUEL 2016




S U M M A R Y

A CREATIVE VISIONMESSAGE FROM THE CHAIRMAN P06MESSAGE FROM THE DIRECTOR GENERAL P07GOVERNANCE BODIES P08

SCR IN 2016 PROFILE AND MISSIONS P09THE STRONG II TRANSFORMATION PLAN P10HUMAN CAPITAL P12STRONG II VALUES P132016 HIGHLIGHTS P14SOCIAL INVOLVEMENT P15

THE INSURANCE AND REINSURANCE MARKET SECTOR BACKGROUND P17ECONOMIC CONTEXT P19

FINANCIAL PERFORMANCEKEY FIGURES P22SCR IN THE RANKINGS P23GENERAL AND FINANCIAL MANAGEMENT P25AUDITORS’ GENERAL REPORT P26RESOLUTIONS OF THE ORDINARY ANNUAL GENERAL MEETING P27FINANCIAL STATEMENTS P29

FINANCIAL STATEMENTS (IFRS)AUDIT REPORT ON CONSOLIDATED FINANCIAL STATEMENTS P38CONSOLIDATED FINANCIAL STATEMENTS P39

1

2

3

4

5

S U M M A R Y

ANNUAL REPORT 2016 Société Centrale de RéassuranceC R E AT I N G R E S I L I E N C E S I N C E 1 9 6 0

RAPPORT ANNUEL 2016

MESSAGE FROM THE CHAIRMAN

Considering the competitive economic context, Société Cen-trale de Réassurance carried on its strategic plan initiated in 2013 and maintained an appreciable performance on several fronts.

In the course of this financial year, SCR management redou-bled its efforts to enhance the quality of services delivered to national and regional ceding companies in terms of tech-nical expertise, innovation, quality of service and proximity.

In its 2020 development vision, SCR designed a new STRONG II Transformation Plan, which rests on four pillars and includes thirty projects involving all collaborators, so as to meet the expectations of our clients and partners. Thus, this year’s activities resulted in a turnover of 2.377 bil-lion dirhams and a net income of 256.84 million dirhams. This financial performance was commended by credit ra-ting agencies Standard & Poor’s and AM Best, which main-tained a stable outlook and their ratings of BBB-/Stable/ and B++(Good) respectively.

I wish to express my deep gratitude to all our partners and to our Moroccan and international clients for the trust they placed in SCR during the fifty-seven years of its existence. Société Centrale de Réassurance is committed to paying close and constant attention to the market so as to retain its position as a national and regional reference.

-1-A CREATIVE

VISION

Société Centrale de Réassurance will continue to support the flourishing insurance market in Morocco, as well as pu-blic authorities as they roll out projects of national signifi-cance. These include, for instance, the project to introduce a mechanism to provide the poor with coverage against ca-tastrophic risk, mandatory Construction All Risk insurance, and Decennial Liability Insurance.

I wish to congratulate management and all SCR’s collabo-rators for their efforts and for the outcomes they achieved, and I renew my trust and confidence in them to accomplish their missions.

Mr. ABDELLATIF ZAGHNOUN

«A company focused on its clients»

PAGE6 - ANNUAL REPORT 20161.A CREATIVE VISION

MESSAGE FROM CEO

I am thrilled to present Société Centrale de Réassurance’s activity report.

The year 2016 was filled with activities and events of high importance, in line with SCR’s new strategic plan. This mo-mentum aims to raise SCR to its fullest potential, and to strengthen its role as a national reinsurer, so as to become a reference in the region. Over the course of the year, strategic projects were under-taken, following the launch of the STRONG II Transforma-tion Plan, a medium- and long-term strategic development tool. This challenge is to be met through the following four major pillars:• Growth and Visibility for the Future;• Technical Expertise and Risk Management;• Operational Excellence and Client Satisfaction;• Corporate Culture and Enhancing Management.

This year, SCR management focused its efforts on develo-ping in-house technical expertise to provide to Moroccan and African cedants. Such expertise is brought in particular by the comprehensive and ambitious training program at SCR ACADEMY RE, the purpose of which is to spread the reinsurance sector’s knowledge economy.

SCR is at a crossroads, endeavoring to develop its interna-tional market while maintaining a significant market share in Morocco through quality service, adequate processes,

«2016, a year focused on Transformation»




Mr. YOUSSEF FASSI FIHRI

margin control, and proven technical expertise.

In 2016, SCR participated in events dedicated to insurance and reinsurance professionals. Through its presence, SCR continues to establish its client-centric approach to business on the very competitive Moroccan and international mar-ket. Such events include the 3rd edition of the Casablanca Insurance Meeting, organized by FMSAR, the Moroccan Federation of Insurance and Reinsurance Companies (Fédé-ration Marocaine des Sociétés d’Assurances et de Réassu-rance) and the 43rd edition of the Conference and General Assembly of the African Insurance Organisation (AIO). SCR was also actively involved in the work of the COP22.

Thus, SCR’s performance in 2016 speaks to the soundness of its technical fundamentals, good resilience, professiona-lism and the mastery of its operations. This is evidenced by the fact that it maintained its combined ratio in line with global trends in the profession at 94.43% and a ROE of 11.4%.

I wish to echo the congratulations of the Chairman of So-ciété Centrale de Réassurance, Abdellatif ZAGHNOUN, to our collaborators for their contribution to SCR’s develop-ment. I would also

PAGE7 - ANNUAL REPORT 20161.A CREATIVE VISION

RAPPORT ANNUEL 2016

GOVERNANCE BODIES

COMMITTEES

Mr. Abdellatif ZAGNOUN - ChairmanMr. Hamid TAWFIKI - Member Mr. Philippe ROCARD - Member Mr. Mustapha LAHBOUBI - Member

AUDIT AND INTERNAL CONTROL COMMITTEE Mr. Said LAFTIT - Chairman Ms. Leila BOUFOUS - Member Mr. Mustapha LAHBOUBI - Member

APPOINTMENT AND REMUNERATION COMMITTEE Mr. Mohamed Amine BENHALIMA - ChairmanMr. Hamid TAWFIKI - Member Mr. Fayçal BELHASSANI - Member

EXECUTIVE COMMITTEEMr. Youssef Fassi Fihri - CEOMr. Mohamed AIT AMAR - Member Ms. Latifa MEZOUARI - Member Mr. Imad Sebti - Membre Mr. Salaheddine AJI - Member Mr. Mohamed BENHAMIDA - Member

STRATEGY AND INVESTMENT COMMITTEE

AUDITORS

BOARD OF DIRECTORSCHAIRMAN OF THE BOARDMr. Abdellatif ZAGHNOUN

BOARD MEMBERSMr. Hamid TAWFIKIMs. Leila BOUFOUSMr. Said LAFTITM. Mohamed Amine BENHALIMA

CAISSE DE DÉPÔT ET DE GESTION REPRESENTED BY

Mr. Mustapha LAHBOUBI

AXA ASSURANCE MAROC REPRESENTED BY

Mr. Philippe ROCARD

Mr. Mohamed AIT AMAR SECRETARY OF THE BOARD

Deloitte AuditCoopers Audit Morocco

PAGE8 - RAPPORT ANNUEL 2016PAGE8 - ANNUAL REPORT 20161. A CREATIVE VISION

Société Centrale de Réassurance was created in 1960 with a convention between the State and the Caisse de Dépôt et de Gestion (CDG), which was amended and renewed on 28 November 2000.

A NATIONAL LEADER...SCR, a subsidiary of the leading financial group in the king-dom (CDG), is positioned as a leader on the Moroccan reinsurance market, and plays the role of institutional in-vestor by participating in premium retention at the national level and mobilizing savings for the country’s economy. It secures its profitability whilst remaining at the service of the Moroccan market and developing international business in various targeted areas.

When it comes to securing the Moroccan market, through its extensive experience and perfect understanding of inter-national reinsurance markets, SCR protects the Moroccan market from international turbulence in reinsurance condi-tions.

... WITH INTERNTIONAL INFLUENCE Internationally, SCR is among the oldest reinsurance compa-nies in developing countries. It significantly contributed to the creation and to the activities of regional organizations such as the General Arab Insurance Union (Union Générale

-2-SCR

IN 2016

PROFILE AND MISSIONSArabe d’Assurance) and the African Insurance Organiza-tion. It also played a part in founding regional companies such as the Arab Reinsurance Company and the African Reinsurance Corporation, initially at the preliminary studies stage, and later on as a founding member and shareholder.

SCR’s experience was provided to many Arab and African countries starting similar companies. Thus SCR received many representatives of African and Middle-Eastern coun-tries on fact-finding or training missions.

THE SCR STRATEGY As a national leader in its field and to better position it-self on the regional market, SCR devised a new approach aimed at diversifying its sources of income. It adopted a proactive strategy for international development, in particu-lar in Africa and the Middle-East. This strategy is expected to confirm and consolidate SCR’s position in Africa as a re-gional reinsurer, while also taking into account the changes and opportunities brought about by the liberalization of Moroccan facultative, new types of compulsory insurance and catastrophic risk insurance.

With this in mind, SCR will reposition its role and signifi-cance as the local incumbent insurer of the Moroccan mar-ket. The company is undergoing a transformation through

RAPPORT ANNUEL 20162. SCR IN 2016

a new plan called STRONG II; its purpose is to support successful change and to take into account the constraints related to an evolving environment.

THE STRONG II TRANSFORMATION PLAN

The «STRONG II» Transformation Plan is an essential tool for SCR’s future strategic development in the medium and long term. It is broken down into several areas of focus for transformation.

The «STRONG II» Transformation Plan pursues comprehen-sive change that involves and unites all collaborators at the service of SCR’s clients, with 4 pillars of development:

• Growth and Visibility for the Future;• Technical Expertise and Risk Management;• Operational Excellence and Client Satisfaction;• Corporate Culture and Enhancing Management.

The purpose of this plan is to strengthen and consolidate SCR’s role as a reinsurance reference, at both the local and regional levels, while taking into account the new challen-ges of market development.

Pillar 1 - Growth and Visibility for the Future • FACULTATIVE REINSURANCE DEVELOPMENTSCR will introduce adequate measures to develop faculta-tive reinsurance in Morocco and elsewhere, in compliance with regulatory changes.

• INTERNATIONAL DEVELOPMENT SCR’s strategy aims to consolidate its position on existing markets and to develop new markets. As a national reinsu-rer, it supports Moroccan investors in Sub-Saharan Africa in the favorable context of furthering South-South cooperation.

• DEVELOPING THE «LIFE» BRANCHDeveloping the «Life» branch is one of the priorities at the national as well as international level. In particular, Africa and the Middle-East provide good growth opportunities for reinsurance of persons.

• CATASTROPHIC RISKSCR is committed to negotiate, define and defend its role with stakeholders of catastrophic risk insurance.

• RETROCESSIONThe implementation of the 2017 retrocession program, as well as the facultative coverage program, must take into ac-count new needs for international development and raising underwriting capacity.

• RATINGSCR is targeting an A- rating in the medium term. The goal is to identify areas for improvement and to implement the Rating Strategy on the short and medium term.

• DEVELOPMENT OF THE AVIATION BRANCHThe focus will be on creating a synergy between the FAIR Pool and SCR to increase the turnover and underwriting result of the Aviation branch.

• DEVELOPMENT OF THE MARINE BRANCHSCR identified areas of development and potential markets. This will lead it to a competitive offer for the Moroccan market.

PAGE10 - ANNUAL REPORT 2016

2. SCR IN 2016

PILLAR 2 - TECHNICAL EXPERTISEAND RISK MANAGEMENT• UNDERWRITING GUIDELINESSCR will have to meet subscription guidelines by branch and types: Treaty and Facultative reinsurance. The new subscription guidelines will be in line with SCR’s appetite for each risk and the development plan.

• COMPULSORY C.A.R. & DECENNIAL LIABILITY INSU-

RANCEThe goal is to capture additional premiums generated by compulsory Construction All Risk and Decennial Liability in-surance and to ensure that SCR’s expertise is recognized in this area. SCR pricing activities will be stepped up and the position for licensing construction supervision offices will be strengthened.

• ERM The deployment of ERM tools is a major component consis-ting in finalizing risk management processes and related work procedures linked to the deployment of ERM tools. Moreover, a fenced-off ALM policy should be implemented.

• RISK MAPPINGIt is crucial to carry out a general assessment of current and future vulnerabilities that could threaten the company’s performance. This should be a way to rank risks and to measure the extent to which these can be managed by im-plementing adequate responses.

• SCR EXPERT NETWORKIt is essential to preserve and enhance SCR technical ex-pertise, which should provide all necessary technical assis-tance to ceding clients. Trainings for SCR’s internal colla-borators and Moroccan and African ceding clients will be organized in 2017.

• TECHNICAL DATABASEThe creation of a central technical database will help to meet both internal and external technical needs (S&P, AM BEST, ACAPS, reinsurers…).

• PRICINGEquipping SCR with a performing pricing tool (standard pricing software) will improve work quality for all involved collaborators.

PILLAR 3 - OPERATIONAL EXCELLENCE AND CLIENT SATISFACTION• INFORMATION SYSTEMS MASTER PLAN (SDSI)SCR plans on developing its IT systems, industrializing its processes, stepping up automation and enhancing appli-cation use.

• ORGANIZATION SCR is to innovate within its organizational system: rewor-king the organizational structure, updating the organiza-tion’s handbook, process mapping, and drafting a new procedure manual.

• COMMITMENT TO SERVICE Quality of service should be SCR’s central concern. Having quality standards, improving quality of services, introducing service commitments, in particular with Moroccan ceding companies, are all key priorities. SCR should soon be able to certify its «commitment to service» standards.

• CLAIMS MANAGEMENT Two goals have been set: cleaning up the portfolio of Mo-roccan facultative claims and foreign outstanding claims and to reduce processing times.

• STREAMLINING TECHNICAL OPERATIONSThe purpose is to improve responsiveness to clients, which

has a positive impact on SCR’s image.

• MARGIN MANAGEMENTThe goal is to define and to introduce a methodological framework and margin calculation standard to manage margins by branch, by business unit, by partner and by

contract..

• FIXED ASSETS MANAGEMENTIt is essential to provide a faithful image of SCR’s fixed as-sets. Automating fixed assets management and the compu-tation of depreciation will contribute to this mission.





RAPPORT ANNUEL 2016

• CASH PLANNING SCR must manage its cash taking into consideration the pace of disbursements and international development.

Pillar 4 - Corporate Culture and Enhancing Management• HUMAN CAPITALThe goal is to develop an integrated, consistent and trans-parent HR policy which encourages individual and collec-tive contributions, and is able to provide each collaborator with visibility on career advancement and possible career paths. HR POLICY« Encouraging our collaborators as they keep up with market changes »

SCR is currently pursuing an active HR policy, so as to de-velop individual and collective skills in accordance with the company’s strategic projects, thereby better preserving in-ternal forces.

This policy is a clean break from previous practices, de-signed to support the company’s transformation, sharpen the focus on clients and to enhance collaborators’ motiva-tion and loyalty. This policy rests on four pillars: • Hiring people with high potential and talent • Training and skills development• Reworking the remuneration system • Encouraging a culture of performance within the com-pany: instituting objective-based management

Staff on 31 December 2016:116 collaborators

HIRING

In order to support its transformation and international de-velopment, over the financial year 2016, SCR hired highly skilled profiles in reinsurance, underwriting, and Enginee-ring and Risk Management.

TRAINING AND SKILLS DEVELOPMENTSCR got highly involved in developing the skills of its colla-borators to meet the requirements of its STRONG II Transfor-mation Plan, and to align with international standards and best practices. Trainings organized in 2016 provided an opportunity for


RÉPARTITION PAR FILIÈRE DE MÉTIER

SOUSCRIPTION

FINANCES ET SUPPORTSFONCTIONS REGALIENNESTECHNIQUE ET ERM

GESTION DES OPERATIONS

SCR collaborators to hone their technical skills in reinsu-rance, and update their knowledge of international stan-dards.

VALUES

The success of SCR’s new growth strategy rests on shared values among its collaborators.

The recently adopted system of values is as follows:• Succeed through challenge • Convince through expertise • Develop through solidarity

These values attest to SCR’s commitment to its clients, partners, shareholders and collaborators.

• PMO & PROJECT METHODOLOGY At SCR, reinforcing project culture is an area of improve-ment, which can be achieved by setting up a Project Mana-gement Office as STRONG II is launched, and by standar-dizing the project steering process by providing a Project Management best practices framework.• MARKETING AND VISUAL IDENTITYA strategy and a marketing plan are vital for a company such as SCR. The company should have a strong and las-ting brand, comply with international standards, use power-ful corporate communication tools and create a new visual identity.

24+39+17+8+12+24,35%39,13%17,39%11,30%

7,83%

2. SCR IN 2016

2. SCR IN 2016

STRONG II VALUESSCR held a workshop on the values of STRONG II-related action. The purpose was to encourage all SCR collabora-tors at all levels to reflect on values of action to be shared for the STRONG II Transformation Plan to be a success.

• GROWTH AND VISIBILITY VALUES1. Dare to make decisions 2. Challenge for success 3. Change for success

• OPERATIONAL EXCELLENCE AND CLIENT SATISFACTION VALUES 1. Develop with dynamism2. Develop with optimism 3. Cooperate with the team 4. Inspire to be creative

• CORPORATE CULTURE AND MANAGEMENT VALUES 1. Progress all the way2. Thrive through solidarity 3. Progress with solidarity 4. Harmonize progress

• TECHNICAL EXPERTISE AND RISK MANAGEMENT VALUES 1. Be professional 2. Show expertise

The values pertaining to each of the four pillars of the STRONG II Transformation Plan truly galvanize individuals and groups. They can be encapsulated in three action va-lues, indicative of strong commitment, accountability and cohesion of SCR staff:

1. SUCCEED THROUGH CHALLENGE2. CONVINCE THROUGH EXPERTISE3. DEVELOP THROUGH SOLIDARITY





• PHYSICAL ARCHIVES MANAGEMENTAccess to archives should be improved and should also introduce measures to guarantee that essential documents are safely stored and protected. It would also be beneficial to standardize archiving practices at SCR.

• FIXED COSTS OPTIMIZATION The goal is to find ways to optimize fixed costs.

RAPPORT ANNUEL 2016

2016 HIGHLIGHTSSCR TOOK ACTION TO ENERGIZE MARKETS

1.Internal highlights • In September 2016, Mr. Youssef Fassi Fihri was appointed CEO of SCR, by decision of the Board of Directors on Friday 30 Sep-tember 2016, chaired by Mr. Abdellatif Zaghnoun, Chairman of the SCR Board and Director General of the Caisse de Dépôt et de Gestion ;

• The AUTO-AT-RC «Gentlemen’s Agreement» with Moroc-can ceding companies was renewed.

• For asset management purposes, SCR carried out a study on ring-fencing on 31 December 2015, in order to manage its investment portfolio by broad lines of business, so as to comply with the new provisions of the law published in the official gazette n. 6388-4 doulKaada 1436 (20 August 2015) ;

• An audit of all technical provisions on 31 December 2015 was carried out by actuarial experts, at SCR’s re-quest, to check the legality and compliance of its technical provisions.

•Multiple technical and business projects were launched to implement portfolio projects

SCR IT Master Plan projects*Upgrading the cash management solution;*Introducing a solvency and integrated risk manage-ment solution;*Redesigning SCR’s website;*Extending storage capacity;*Upgrading SCR’s VoIP system and LAN networks;

At the same time, other missions were set in motion :*Drafting the Procedure Manual ;*IT security audit. The purpose is to institute a security management system that complies with ISO 27001 and applicable standards.

2.RatingIn July 2016, SCR organized the annual meeting with credit rating agencies S&P and AM Best. This was an opportunity to discuss with them developments at SCR and its environ-ment, and to examine ways to improve SCR’s rating, in par-ticular the stand-alone rating.

S&P confirmed SCR’s current rating in its 25 August 2016 report. As for AM Best, it confirmed its B++ rating (Good) for financial strength and its BBB long-term issuer rating. The outlook for this rating is stable.

AM Best justified this rating by the company’s good risk-ad-justed capitalization, the adequate business distribution on the local market and the good technical results internatio-nally.

3.Forums and Events 3RD EDITION OF THE CASABLANCA INSURANCE MEETING

SCR participated in the 3rd edition of the Casablan-ca Insurance Meeting, under the High Patronage of His Majesty King Mohammed VI, and hosted by FMSAR, the Moroccan Federation of Insurance and Reinsurance Companies, on the theme «How to face emerging risks in a globalized world».Over the course of this scientific convention, which spot-lighted the Cote d’Ivoire market, six plenary conferences and nine thematic workshops were held, facilitated by national and international experts on topical issues and challenges in the insurance and reinsurance industry. This forum is becoming a key event in the continent, at-tended by over 700 professionals from about 30 coun-tries. This was an opportunity for SCR to discuss strate-gic issues, anticipate future changes and trends and to explore new avenues for development.

PAGE14 - ANNUAL REPORT 20162. SCR IN 2016

2. SCR IN 2016

43RD EDITION OF THE AIO CONFERENCE AND GENERAL AS-

SEMBLY

Jointly with FMSAR (the Moroccan Federation of Insu-rance and Reinsurance Companies), SCR hosted the 43rd edition of the Conference and General Assembly of the African Insurance Organisation (AIO), held in Marrakech on 8-11 May 2016, on the theme «African Insurance between current and emerging challenges».The goal of this conference was to highlight the sector’s growth potential in Africa and the challenges that all operators should rise to in order to establish efficient and sustainable development. The fact that Morocco was chosen as a venue is a re-cognition of the significance of the country’s insurance and reinsurance sector at the continental level, and that many Moroccan players’ outreach extends well beyond the Kingdom’s borders. This event was attended by over 800 participants from 58 countries, representing the elite of African insurance and reinsurance. Founded in 1972, the AIO is a non-governmental or-ganization with over 356 members representing 47 countries in the African continent, and 14 international associate members.

COP 22: 2016 MARRAKECH CONFERENCE ON CLIMATE CHANGE

SCR participated in COP 22, a large international event held from 7 to 18 November in Marrakech, which brought together over 180 countries and tens of thou-sands of participants representing their countries and NGOs defending the cause of a healthy and sustainable environment for humankind. With its two stands, SCR wished to showcase our institution’s Corporate Social Responsibility mission to professionals and the general public.

• One stand was held with the Caisse de Dépôt et de Gestion group. Through its direct presence and the in-volvement of the Group’s subsidiaries, it confirmed its role as a financial lever advancing and encouraging environmental investment and promoting bold solutions in favor of Moroccan businesses and citizens.

• Another stand was dedicated to Moroccan professio-nals and held jointly with FMSAR to present SCR’s so-lutions to support Moroccan insurance companies and foreign partners, through studies on catastrophe risks, and events, training and information sessions or support provided to public authorities to prevent and cover envi-ronmental risks.

CARREFOUR AFRICAIN FORUM SCR also participated in the Carrefour Africain Forum, a key event and a reference on employment in Afri-ca, which took place in Casablanca on 26 November 2016.The forum is a chance for companies, recent graduates and experienced executives to engage in true exchange; SCR took this opportunity to present the reinsurance pro-fession to Moroccan and African economic players, and to showcase its technical expertise, dynamism and vi-sion.

TECHNICAL DAYS

SCR organized a technical seminar, hosted by an ex-perienced expert, on the theme «Insurance/Reinsurance Sector Organization following the coming into force of the law on mandatory CAR/Decennial Liability insu-rance»

Invitations were extended to market partners as well as to professions that are strongly represented in construc-tion, such as the National Order of Architects (Ordre National des Architectes), the National Construction and Public Works Federation (Fédération Nationale du Bâtiment & des Travaux publics), the Geological Risk Laboratory (Laboratoire des Risques Géologiques), the Casablanca Urban Agency (Agence Urbaine de Casa-blanca), the Hassania school of public works, as well as relevant public administrations in this sector.

The seminar was attended by over 70 specia-lists and addressed the following themes:*Role of the construction and public works sector in the Moroccan economy*Construction-related risks*Legal developments in Morocco*Draft law on mandatory construction insurance

4.Social involvement Just like in previous years, Société Centrale de Réassurance made financial contributions to express its solidarity. This in-volvement took the form of financial donations, either direc-tly or through social works carrying out cultural and social projects, as well as foundations:





RAPPORT ANNUEL 2016

CDG FOUNDATION

The CDG Foundation is a public interest association, and since its creation it has supported solidarity and social and sustainable development, science and knowledge, projects to enhance the national cultural and historic he-ritage, and actions to support sport and talent. Through socially meaningful action, the CDG Foundation trans-lates CDG Group’s commitment to solidarity and social responsibility into action on the ground. It does this by:

• Financially contributing to actions that fall within its areas of focus.• Making in-kind contributions to its target populations through local or regional associations;• Contributing skills, by putting CDG Group’s expertise at the service of associations.

KEY MISSIONS :

1. Develop and support actions in favor of solidarity, social and sustainable development and philanthropy;

2. Support local and national development by deploying innovating partnerships;

3. Act as a unifying force for CDG Group’s social action.

AHLY FoundationAHLY Foundation was created on CDG Foundation’s initiative, with the purpose of helping orphaned minors.

• The first beneficiaries were the children of the victims of two tragedies in Morocco in 2008: the fire in the Lissasfa factory in Casablanca and the collapse of the construction site in the Al Manal complex in Kenitra.

• Funding comes from contributions from CDG Group senior executives, in favor of collective and proactive solidarity.

PAGE16 - ANNUAL REPORT 20162.SCR IN 2016

2.LA SCR EN 2015

-3-THE INSURANCE AND

REINSURANCE MARKET

SECTOR BACKGROUND 1.The international marketLThe global market for non-life insurance has grown by 2.4% in 2016 compared to 3% in 2015. In advanced countries, premium growth has slowed, from 2.5% in 2015 to 1.7% this year, mainly due to weaker economic growth. Western European markets had more momentum, largely thanks to a strong automotive sector in Germany and Spain. Growth was stable in the United Kingdom and France, and accelerated in some markets such as Canada, Japan and South Korea.

In emerging countries, non-life insurance growth reached 5.3% in 2016, a slight decline relative to 2015, but well below the average annual growth of 8% between 2010 and 2014. This fall is due to a continued economic slowdown in Latin America, sluggish growth in the larger markets of Sub-Saharan Africa and lower premium growth in China (7% compared to 10% in 2015). This was partially offset by a recovery in Central and Eastern European Countries and strong growth in the MENA region (+9%).The non-life reinsurance sector is headed toward a fifth year of rapid growth, despite poor underwriting results.

Global non-life reinsurance premiums are expected to rise in 2017, due to increased cessions in emerging markets.

Premium growth in advanced markets reflects moderate price pressures, slowing the growth of the primary market and accelerating inflation. New solvency regulation will probably also support demand. Non-life reinsurance has become more attractive for European insurers under Solven-cy II, given that new standards better reflect reinsurance’s risk-mitigation effect. In emerging markets, premium growth will improve with the macroeconomic recovery, in particu-lar in Latin America, and with increased cessions in Chi-na. Several other Latin American and Asian countries are strengthening solvency regulation. Adding risk-based fees could lead to higher capital requirements across the board. Global premium growth is expected to pick up in 2018, as a result of increased primary insurance sales in all regions.

Global premiums for traditional life reinsurance are expec-ted to rise only marginally over the next two years, driven by emerging markets, in particular China. Premiums in ad-vanced markets will remain more or less stable, with modest growth in Australia, Canada, Japan and some Western Eu-ropean countries offsetting declines in the USA and the UK.




RAPPORT ANNUEL 2016

2.The national market Over the first quarter of 2016, the Moroccan insurance and reinsurance market saw a volume of premiums of over 20 billion dirhams, some19.2% higher than in the same period of the previous year. This expansion is chiefly due to strong growth in life insurance and savings policies, at 11.7% in the first quarter of 2015 and 49.3% the previous year.

Growth of non-life insurance premiums slightly improved with a 5.6% rise, compared to 4.6% the previous year. This expansion is due to more issuances in the Automotive (+4.7% with a premium volume of 5.728 billion dirhams) and Injury Accidents branches (+9% versus 3.6% in Q1 2015, with a premium volume of 1.890 billion dirhams).

Written reinsurance premiums experienced a 3.25% de-cline, from 104.4 million dirhams in the first quarter of 2015 to 101 million one year later.

Wafa Assurance is the largest issuer, with 3.76 billion di-rhams (versus 3.42 billion dirhams in 2015, +9.9%), repre-senting an 18.8% market share, followed by RMA Watania with a 16.3% market share with 3.27 billion dirhams of premiums issued (versus 2.85 billion dirhams in Q1 2015, +14.7%). Axa Assurance has an 11.4% market share with 2.28 billion dirhams (versus 2.16 billion dirhams in 2015, +5.5%), Saham Assurance an 11.3% market share with a 2.26 billion dirhams turnover.

As for the latest developments in the insurance sector, 2016 started with the introduction of a mediation mechanism ef-fective January 1st, on a voluntary basis, in compliance with the commitments contained in the sector’s program contract with the government. This system aims to improve client re-lations, expedite processing and to prevent policyholders from systematically going to court.

In February 2016, a new regulatory authority for the insu-rance sector was established, the Autorité de Contrôle des Assurances et de la Prévoyance Sociale (ACAPS), which re-placed DAPS (Direction des Assurances et de la Prévoyance Sociale). Following the appointment of the ACAPS Chair-man, members representing the profession were appointed in the regulation and discipline commissions.

In April 2016, the ACAPS memorandum n. 10/2015 on premium collection and claim settlement came into force, thereby putting an end to insurance on credit and therefore to arrears. Intermediaries may only collect premiums and

pay claims if they are cleared to do so. A communication campaign targeted at the general public was launched by FMSAR, ACAPS and FNACAM so as to explain upcoming changes.

Additionally, draft law n. 59.13 amending and supplemen-ting law n.17.99 on the insurance code was reviewed on 27 April 2016 by the Finance and Economic Development Commission of the House of Representatives. In particular, it contained regulatory provisions for Takaful insurance ap-proved by the Government Council on 14 May 2015.

From a continental perspective, Morocco was unanimously chosen during the 40th General Assembly of the FANAF (Federation of African insurance companies operating un-der national law) in Côte d’Ivoire in February 2016 to host the 41st GA in February 2017. This is a first not just for Morocco, but also for North Africa. FMSAR was the or-ganization that pursued the Moroccan candidacy, which according to FMSAR is part of the Moroccan insurance sec-tor’s African outreach policy and stepping up South-South cooperation. The event shall be held in Marrakech.

FMSAR organized the third edition of the Casablanca In-surance Meeting, which took place from 13 to 15 April 2016, on the theme «Insurers and Reinsurers in Africa: how to face emerging risks in a globalized world?».

In addition, at COP 22, FMSAR held on 2 November 2016 an international conference on the theme «Climate change: challenges and opportunities for the insurance sector».

Moreover, in November 2016 the Allianz group finalized the acquisition of Zurich Assurances Maroc for 2.6 billion dirhams. This operation will enable Allianz to start opera-ting on the life and damage insurance segments in Moroc-co.

Lastly, further change is expected concerning property damage insurance (fire, comprehensive homeowner in-surance), and civil liability and automotive civil liability policies that cover against bodily injuries caused to third parties. They will all include coverage against catastrophic risks. The text was published in the Kingdom of Morocco’s Official Gazette, but its implementation is pending imple-menting provisions.

3. THE INSURANCE AND REINSURANCE MARKETPAGE18 - ANNUAL REPORT 2016

ECONOMIC CONTEXT

1. The global economyAccording to the IMF’s latest forecasts, global growth should have fallen to 3% in 2016 before going back up to 3.4% in 2017. This prediction for 2016 owes to lower-than-ex-pected activity in the USA in the first quarter, and to the materialization of a significant risk, the Brexit vote. As a consequence, growth prospects in advanced countries in 2016 have been revised downward, to 1.6% rather than the previous 1.8%. In emerging countries and developing countries, growth should pick up slightly in 2016, at 4.2%, after five consecutive years of slowdown.

At the end of the fourth quarter of 2016, economic growth consolidated in the USA, stagnated in the euro area and slightly declined in the UK. The latest data on US natio-nal accounts indicate higher year-on-year growth at 1.9% versus 1.7% in the third quarter of 2016. This owes to in-creased household spending and housing and non-housing investment, while exports and public spending are decli-ning.

In emerging countries, in the fourth quarter Chinese growth increased for the first time since the last quarter of 2014, reaching 6.8%, up from 6.7% during the three previous quarters. In India, data for the third quarter indicate a slowdown from 7.3% to 7.1%. In Brazil and Russia, the re-cession continued, though the contraction of GDP declined from -3.6% to -2.9% and from -0.6% to -0.4% respectively.

2. The national economyNational growth slowed down in the third quarter of 2016 to 0.8% versus 4.1% the previous year, mainly because of the sharp decline (-11.7%) of agricultural value added.

Growth of non-agricultural value added slightly improved, with 1.9% growth in the third quarter of 2016, compared to 1.6% the previous year. This is a result of, on the one hand, accelerating growth in sectors such as construction (+0.7% versus +0.1%), hotels and restaurants (+7.7% ver-sus +1.6%), transport (+3.5% versus +2.9%), trade (+1.9% versus +1.2%), and on the other hand a slowdown in the

sectors of water and electricity (+3,9% versus +4,6%), pro-cessing industries (+0,8% versus +2,8%), and telecommuni-cations (+3,5% versus +4%).

Considering that the growth of taxes on products net of sub-sidies was limited to 6.3% after sharp increases of 13% in the third quarter of 2015 and 13.9% in the same period in 2014, non-agricultural GDP growth fell back to 2.5% in the third quarter of 2016 versus 2.9% in the same quarter the previous year.

On the demand side, household expenditure increased 2.9% in comparison to 2.5% the previous year, general government consumption rose 1.1% compared to 1.5% and investment grew 8.7% after a 5.4% fall the previous year. Net exports had a 3.7 percentage point negative impact on growth, instead of a 4-point positive contribution in the third quarter of the previous year.

Concerning employment, the year 2016 saw the loss of 37,000 jobs, with 119,000 jobs lost in agriculture, and 38,000 jobs created in services, 36,000 in construction and 8,000 in industry, including artisans. In these condi-tions, the unemployment rate fell 0.3 points to 9.4%, with a 0.7 point decline to 13.9% in urban areas and a slight increase from 4.1% to 4.2% in rural areas. However, for youth aged 15-24, the unemployment rate rose from 20.8% to 22.5% nationally and from 39% to 41% in cities.

Regarding foreign trade, at the end of the year 2016 the trade deficit widened, from 29.8 billion dirhams to 184 billion, as a result of the 9.5% rise in imports at 407.4 billion being larger than the 2.5% increase of exports at 223.4 billion. The cover rate thus fell back to 54.8%, a 3.8 percentage point decline.

The growth of imports mainly reflects a 27% increase in purchases of capital goods at 118.9 billion. Similarly, pur-chases of consumer goods rose 15.3% at 80.6 billion di-rhams, in particular with a 29.5% increase of passenger car purchases at 14 billion dirhams.

As for government finances, the situation at the end of De-cember 2016 indicates a fiscal deficit, excluding privati-zation, of 42.1 billion dirhams, 2.1% more than the year 2015, and a 5.5 billion over-expenditure compared to the 2016 budget law target.

Current revenue rose 3.2% to 241.1 billion, with a 3.8%

3. THE INSURANCE AND REINSURANCE MARKET STRONG IIPLAN DE TRANSFORMATION




RAPPORT ANNUEL 20163. THE INSURANCE AND REINSURANCE MARKET

increase of tax revenues at 212.4 billion and a 0.4% de-cline of non-tax revenues at 25.4 billion, in connection with increased donations from GCC countries which reached 7.2 billion dirhams. Current expenditure increased by 104 million to 223.3 billion. The current balance is thus posi-tive by 17.8 billion, a 7.5 billion improvement relative to December 2015. Investment expenditure increased 7.8% to 63.2 billion, bringing the total expenditure to 286.6 billion, a 1.7% increase. The balance of Special Treasury Accounts, excluding privatization, was a positive 3.4 bil-lion. Given the 5.2 billion dirhams of payment arrears, the Treasury’s borrowing requirement is 37 billion, a 20.2% reduction relative to December 2015.

Concerning bank liquidity, bank requirements fell to 14.5% billion dirhams in December, in particular due to the fall in the Treasury position at the central bank, Bank Al Maghrib. Thus, the central bank reduced the volume of its 7-day ad-vances to 12 billion. Bearing in mind the 4.1 billion of secured loan operations for the MSME support program, the outstanding balance of Bank Al Maghrib’s operations stands at 16.4 billion. In such conditions, the interbank rate remained almost unchanged at 2.26%.

At the Casablanca Stock Exchange, MASI appreciated in December by 9.1%, bringing its 2016 performance to 30.5%. Market capitalization increased 28.7% over the year to 583.4 billion dirhams, and the volume of transac-tions rose 39.6% at 72.7 billion dirhams, including 22.1 billion just in the month of December.

Regarding consumer prices, inflation stood at 1.8% in De-cember, after 1.9% in November. This is exclusively due the slowing growth rate of volatile food prices, from 6.6% to 5.7%. Fuel and lubricant prices increased 11.5% com-pared with 10.2%, and the prices of regulated products rose 0.6% versus 0.6%. Excluding these products, core in-flation slightly accelerated from 1% to 1.1%. At the end of 2016, inflation stood at 1.6%, the same rate as the pre-vious year.


4.FINANCIAL

PERFORMANCE




PAGE21 - RAPPORT ANNUEL 2016

RAPPORT ANNUEL 20163. LE MARCHÉ DE L’ASSURANCE TE DE LA RÉASSURANCE

KEY FIGURES AS AT 31/12/2016

NET INCOME

GROSS TECHNICAL PROVISIONS(MDH)

10 400

10 500

11 000

11 500

12 000

12 500 EQUITY AND QUASI-EQUITY (MDH)

1 700

1 800

1 900

2 000

2 100

2 200

2 300

PREMIUMS ISSUED (MDH)

500

1 000

1 500

2016

2016

20162015

2015

20152014

2014

20142013

2013

20132012

2012

20122011 2011

2011

2 500

2 000

3 000

3 500

13 400

13 600

13 800

14 000

14 200

14 400

14 600

14 800

15 000

15 200 TOTAL BALANCE (MDH)

11 100

11 200

11 300

11 400

11 500

11 600

11 700

11 800

11 900

12 000 RESTRICTED INVESTMENTS (MDH)

R.O.E AFTER TAXES

0,00%

5,00%

10,00%

15,00%

20,00%

25,00%

050

100

150

200

250

300

350

400

4. FINANCIAL PERFORMANCE

201620152014201320122011


2016 2016

2016

2015 2015

2015

2014 2014

2014

2013 2013

2013

2012 2012

2012

2011 2011

2011

3. LE MARCHÉ DE L’ASSURANCE TE DE LA RÉASSURANCE

116,82

126,17

91,18

38,90

28

27,2

593,50

197,50

174,76

136,34

SCR IN THE RANKINGS

WRITTEN PREMIUM REINSURER

RANKING OF ARAB REINSURERS BY WRITTEN PREMIUM (Net of cessions)

CCR ALGÉRIE 136,34

SCR MAROC 174,76

KUWAIT RE KOWEIT 113,90

ARAB RE LIBAN 55,30

TUNIS RE TUNISIE 28

TRUST INTERNATIONAL

QATAR RE QATAR 343,40

BAHRAIN 290,20

SAUDI RE ARABIE SAOUDITE 201,11

ARIG BAHRAIN 180,50

Net of cessions 2016 ($ US million)

RANKING OF AFRICAN REINSURERS BY WRITTEN PREMIUM (Net of cessions)

WRITTEN PREMIUM REINSURER

CONTINENTAL RE

KENYA RE*

NIGÉRIA

KENYA

ZEP-RE PTA RE* KENYA

HANNOVER RE AFRICA AFRIQUE DU SUD

TUNIS RE* TUNISIE

GHANA RE GHANA

MUNICH RE AFRICA

AFRICA RE NIGÉRIA

AFRIQUE DU SUD

SCR MAROC

*CCR ALGÉRIE

Nettes de cession 2016(en millions $ US)

Sources: Rapports d’activité 2014 et Global Reinsurance Highlights 2016(*) ROE avant impôts

RANKING OF AFRICAN REINSURERS BY R.O.E.* BEFORE TAXES

REINSURER

ZEP-RE PTA RE KENYA 11,760%

AFRICA RE NIGERIA 13,35%

SCR MAROC 10,03%

TUNIS RE* TUBISIE 7,74%

CONTINENTAL RE

KENYA RE KENYA 20,58%

NIGERIA 18,77%

GHANA RE GHANA 14,91%

CCR ALGÉRIE 14,43%

COUNTRY

COUNTRY COUNTRY

R.O.E 2016

IN THE REGIONAL MARKET

116,82

126,17

91,18

38,90

28,00

27,20

593,50

197,50

174,16

136,34




3. LE MARCHÉ DE L’ASSURANCE TE DE LA RÉASSURANCE4. FINANCIAL PERFORMANCEPAGE23 - ANNUAL REPORT 2016

RAPPORT ANNUEL 2016

AS AT 31 DECEMBER 2016 The 2016 financial year, Socété Centrale de Réassurance’s turnover stood at 2.378 billion dirhams, in comparison with 2.524 billion in 2015. This represents a 146.17 million decline, or 5.8%. Written premiums by line of business are as follows:

TURNOVER BY LINE OF BUSINESS IN 2015-2016 (MDH)

Statutory assignments

Moroccan conventional business

International conventional business

Written premium

Production is distributed between statutory and conventional business as follows:

Statutory and conventional breakdown:

1-Moroccan business1-1.Statutory assignmentsBy the end of December 2016, the volume of premiums stood at 63.56 million dirhams, up from 46.89 million the previous year, i.e. a 16.67 million or 35.55% increase. During financial year 2015, the previous years’ estimates were cleared following the arrival of the cedants’ accounts.

1-2. Moroccan conventional business1.2.1.Moroccan Treaty The volume of Moroccan treaty premiums went from 1.372 billion dirhams in the fiscal year 2015 to 1.240 billion dirhams in 2016, a 9.7% decline. Premiums generated by the contributory Motor/occu-pational accidents/civil liability treaty with Moroccan ceding companies stand at 969.64 million dirhams in 2016, compared to 1.045 billion in 2015.

1.2.2.Moroccan FacultativeThe volume of written premiums went from 748.92 million dirhams in 2015 to 823.20 million dirhams in 2016, a 9.9% increase mainly owing to the «Fire» branch where estimates were cleared and 2015 pre-mium prices were raised.

2-International conventional businessThe volume of international premiums fell 29.4%, from 355.75 million dirhams in 2015 to 251.30 million in 2016. This 104.46 million decline is a result of clearing previous estimates and portfolio pruning.

2016 distribution

2015 46,89+35,6 %

-2,8 %

-29,4 %

-5,8 %

2 121,09

2 062,71

355,76

2 523,74

251,3

2 377,57

63,56

2015

2015

2015

2016

2016

2016

2016

87 %

10%

14%

84 %

Statutory assignmentsMoroccan conventional businessInternational conventional business

3+10+87+14+84+2+3% 10%2%

4. FINANCIAL PERFORMANCE

Treaty

Facultative

18%40%

18+82+L40+60+L82%60%

Moroccan conventional business

International conventional business


2015 2016

GENERAL AND FINANCIAL

MANAGEMENT AS AT 31 DECEMBER 2016

1-InvestmentThe book value of the investment portfolio, excluding depo-sits at ceding companies, stood on 31 December 2016 at 10.442 billion dirhams, compared to 10.555 billion at the end of 2015, a 112.49 million dirhams or 1.07% decline.

4. PERFORMANCE FINANCIÈRE

2-Investment incomeExcluding interest from ceding companies, investment income stood at 358.71 million dirhams on 31 December 2016, 23.80 million more than income generated in the same period of the previous year.

3-OverheadOverhead costs, including costs relating to real estate ma-nagement and excluding accumulated depreciation, stood in December 2016 at 90.98 million dirhams compared to 86.40 million in 2015, a 4.58 million or 5.30% increase.

4-Net income With 170.29 million dirhams of corporate tax, net income in the financial year 2016 was 256.84 million dirhams ver-sus 193.15 million dirhams the previous year, a 32.97% expansion.





RAPPORT ANNUEL 20164. FINANCIAL PERFORMANCE

RAPPORT GÉNÉRAL DES COMMISSAIRES AUX COMPTES EXERCICE DU 1ER JANVIER AU 31 DÉCEMBRE 2016

Aux ActionnairesSociété Centrale de Réassurance

Tour Atlas - Place Zellaqa, Casablanca

RAPPORT GÉNÉRAL DES COMISSAIRES AUX COMPTESEXERCICE DU 1ER JANVIER AU 31 DÉCEMBRE 2016

Conformément à la mission qui nous a été confiée par votre Assemblée Générale Ordinaire, nous avons effectué l’au-dit des états de synthèse, ci-joint, de la société Centrale de Réassurance, comprenant le bilan, le compte de produits et charges, l’état des soldes de gestion, le tableau de financement et l’état des informations complémentaires (ETIC) relatifs à l’exercice clos le 31 décembre 2016. Ces états de synthèse font ressortir un montant de capitaux propres et assimilés de MAD 2 256 702 317,05 dont un bénéfice net de MAD 256 845 247,02.

RESPONSABILITÉ DE LA DIRECTIONLa direction est responsable de l’établissement et de la présentation sincère de ces états de synthèse, conformément au référentiel comptable admis au Maroc. Cette responsabilité comprend la conception, la mise en place et le suivi d’un contrôle interne relatif à l’établissement et la présentation des états de synthèse ne comportant pas d’anomalie significa-tive, ainsi que la détermination d’estimations comptables raisonnables au regard des circonstances.

RESPONSABILITÉ DE L’AUDITEURNotre responsabilité est d’exprimer une opinion sur ces états de synthèse sur la base de notre audit. Nous avons effectué notre audit selon les normes de la profession au Maroc.Ces normes requièrent de notre part de nous conformer aux règles d’éthique, de planifier et de réaliser l’audit pour obtenir une assurance raisonnable que les états de synthèse ne comportent pas d’anomalie significative.Un audit implique la mise en oeuvre de procédures en vue de recueillir des éléments probants concernant les montants et les informations fournies dans les états de synthèse. Le choix des procédures relève du jugement de l’auditeur, de même que l’évaluation du risque que les états de synthèse contiennent des anomalies significatives. En procédant à ces évaluations du risque, l’auditeur prend en compte le contrôle interne en vigeur dans l’entité relatif à l’établissement et la présentation des états de synthèse afin de définir des procé-dures d’audit appropriés en la circonstance, et non dans le but d’exprimer une opinion sur l’efficacité de celui-ci. Un audit comporte également l’appréciation du caractère approprié des méthodes comptables retenues et le caractère raisonnable des estimations comptables faites par la direction, de même que l’appréciation de la présentation d’ensemble des états de synthèse.Nous estimons que les éléments probants recueillis sont suffisants et appropriés pour fonder notre opinion.

OPINION SUR LES ÉTATS DE SYNTHÈSENous certifions que les états de synthèse cités au premier paragraphe ci-dessus sont réguliers et sincères et donnent dans tous leurs aspects significatifs, une image fidèle du résultat des opérations de l’exercice écoulé ainsi que de la situation financière et du patrimoine de la Société Centrale de Réassurance au 31 décembre 2016 conformément au référentiel admis au Maroc.

VÉRIFICATIONS ET INFORMATIONS SPÉCIFIQUESNous avons procédé également aux vérifications spécifiques prévues par la loi et nous nous sommes assurés notamment de la concordance des informations données dans le rapport de gestion du Conseil d’Administration destiné aux action-naires avec les états de synthèse de la société.

Casablanca, Le 5 Avril 2017


RESOLUTIONS OF THE OR-DINARY ANNUAL GENERAL MEETING ON WEDNESDAY, 28TH OF JUNE 2017

FIRST RESOLUTIONThe General Meeting, having heard the Board of Director’s Management Report for the financial year 2016, approves said report in full and without reservations. This resolution, put to the vote, is unanimously adopted.

SECOND RESOLUTIONThe General Meeting, having heard the reports of the statu-tory auditors on the operations for the financial year 2016, approves the financial statements closed on 31st December 2015 as they were presented to them, showing a net inco-me of MAD 256,845,242.02. This resolution, put to the vote, is unanimously adopted.

THIRD RESOLUTIONThe General Meeting approves the allocation of earnings proposed by the Board of Directors as follows:

Net income…………………...... MAD 256.845.247,02Net income for appropriation…...... MAD 256.845.247,025% legal reserve........................................... MAD 0,0010% special guarantee reserve .........MAD 25.684.524,70Remainder……………………...….MAD 231.160.722,325% dividend...............……………… MAD 75.000.000,00

Remainder for appropriation..........MAD 156.160.722,322015 balance carried forward…….......MAD 762.216,99Total to be distributed…………....…..MAD 156.922.939,31Special dividend..............………… MAD 54.600.000,00Free reserve ……….......………... MAD 102.000.000,002016 balance carried forward………....MAD 322.939,31

The shareholders approve the Board of Directors’ recom-mendations and decisions on the allocation of earnings of the financial year closed on 31 December 2016.

The General Meeting resolves to distribute dividends from financial year 2016 starting on 1 September 2017.This resolution, put to the vote, is unanimously adopted.

FOURTH RESOLUTIONThe General Meeting, having heard the special report of the statutory auditors on the agreements relating to articles 56 and following of the public limited companies act, ap-proves the agreements mentioned therein.This resolution, put to the vote, is unanimously adopted.

FIFTH RESOLUTIONThe General Meeting gives Board members full and final discharge of any liability for their management during the year during which the above accounts have been appro-ved. This resolution, put to the vote, is unanimously adopted.

SIXTH RESOLUTIONThe General Meeting takes note of the letter dated 28 No-vember 2016 whereby Mr. Said Latfit resigns from his po-sition as SCR Board member, and gives him full and final discharge for his management as Board member. This resolution, put to the vote, is unanimously adopted.

SEVENTH RESOLUTIONThe General Meeting takes note of the letter dated 1 Februa-ry 2017 whereby Mr. Mohamed Amine Benhalima resigns

4. FINANCIAL PERFORMANCE STRONG IIPLAN DE TRANSFORMATION




RAPPORT ANNUEL 20164. FINANCIAL PERFORMANCE

from his position as SCR Board member, and gives him full and final discharge for his management as Board member. This resolution, put to the vote, is unanimously adopted.

EIGHTH RESOLUTIONThe General Meeting ratifies the appointment of Mr. Yassine Abderrazik Haddaoui as member of the Board of Directors in replacement of Mr. Said Latfit. Mr. Yassine Abderrazik Haddaoui’s term for the remaining duration of term of office of his above-mentioned predeces-sor will expire at the Annual General Meeting, which will consider the financial statements for the year ended on 31 December 2017.This resolution, put to the vote, is unanimously adopted.

NINTH RESOLUTIONThe General Meeting ratifies the appointment of Mr. Moha-med Ali Bensouda as member of the Board of Directors of the Société Centrale de Réassurance «SCR» for a six-year mandate which will expire at the Annual General Meeting which will consider the financial statements for the year en-ding on 31 December 2022. This resolution, put to the vote, is unanimously adopted.

TENTH RESOLUTIONThe General Meeting, following the resolutions above, re-calls that the current members of the Société Centrale de Réassurance’s Board of Directors are the following:

- Mr. Abdellatif ZAGHNOUN, Chairman of the Board;

- Mr. Hamid TAWFIKI,

- Caisse de Dépôt et de Gestion represented by Mr. Mustapha Lahboubi;

- AXA ASSURANCES MAROC represented by Mr. Philippe Rocard;

- Ms. Laila BOUFOUS ;

- Mr. Yassine Abderrazik HADDAOUI ;

- Mr. Mohamed Ali BENSOUDA.This resolution, put to the vote, is unanimously adopted.

ELEVENTH RESOLUTIONThe General Meeting resolves to allocate a gross amount of 160,000 dirhams to the Board of Directors as attendance fees for the financial year 2016.

The General Meeting leaves it to Board members to distri-bute the amount among themselves. This resolution, put to the vote, is unanimously adopted.

TWELFTH RESOLUTIONLThe General Meeting grants full powers to the bearer of the original or a copy of the present document for purposes of publicity or any other purpose prescribed by law.This resolution, put to the vote, is unanimously adopted.


FINANCIAL STATEMENTS





RAPPORT ANNUEL 2016

ASSETS Previous yearB R U T DEPR & PROV NET NET

FIXED ASSETSNON VALUE ASSETS

INTANGIBLE ASSETS

TANGIBLE ASSETS

ADJUSTMENT IN CONVERSION OF ASSETS

RETROCESSIONNAIRES' SHARE IN TECHNICAL PROVISIONS

CURRENT ASSETS RECEIVABLES

INVESTMENT SECURITIES (not allocated to reinsurance operations)

CHANGE IN TRANSLATION (CURRENT ASSETS ADJUSTMENTS )

CASHCASH - ASSETSChecks and Cash Values

Bank Deposits and Postal Checks

Cash, Imprest Accounts and Letters of Credit

TOTAL

year

CURRENT ASSET (excluding cash)

11 419 386 543,34 674 170 556,76 10 745 215 986,58 10 769 331,18

6 762 455,00 6 024 411,00 738 044,00 1 917 980,00

5 000 200,00 5 000 200,00 1 000 040,00

1 762 255,00 1 024 211,00 738 044,00 917 940, 00

14 860 104,63 11 016 412,04 3 843 692,59 5 541 130,53

14 860 104,63 11 016 412,04 3 843 692, 59 5 541 130,53

39 645 597,87 32 997 195,64 6 648 402,23 7 441 760, 97

190 391,00 79 945, 48 110 445,52 142 863,72

39 455 206,87 32 917 250,16 6 537 956,71 7 298 897,25

9 795 470,60 9 795 470,60 8 315 664,71

9 594 547, 21 9 594 547,21 8 112 098,38

200 923,39 200 923,39 203 566,33

11 348 292 915,24 624 132 538,08 10 724 160 377,16 10 745 004 294,97

250 667 383,27 183 331 232,03 67 336 151,24 75 593 637,67

3 653 861 688,39 3 653 861 688,39 3 698 054 981,36

6 259 827 485,39 439 595 475,10 5 820 232 010,29 5 663 342 751,46

10 200 454, 36 1 205 830,95 8 994 623,41 10 592 171 52

241 372 149,44184 238 839,44 184 238 839,44

989 497 064,39 989 497 064,39 1 056 048 603,52

30 000,00 30 000,00 1 545 500,00

30 000,00 30 000,00 1 545 500, 00

3 965 348 880,82 264 006 548,78 3 701 342 332,04 3 123 729 607,87

2 095 508 320,00 55 250 564,06 2 040 257 755,94 1 862 084 277,04

254 566 747,00 254 566 747,00 158 744 941,00

1637 888 494,00 55 250 564,06 1 582 637 929,94 1 400 848 603,04

203 053 079,00 203 053 079,00 302 490 733,00

1 816 885 898,79 208 755 984,72 1 608 129 914,07 1 213 021 080,25

290 437 088,95 75 982 560,30 214 454 528,65 134 556 215,191 226 559 364,95 118 779 956,99 1 107 779 407,96 818 847 202,38

167 398,08 167 398,08 187 742,88170 499 971,86 170 499 971,86 151 613 867,37

20 857 532,96 13 993 467,43 6 864 065,53 6 066 391,02108 364 541,99 108 364 541,99 101 749 661,41

52 954 662,03 52 954 662,03 48 624 250,58

83 516 263,00 83 516 263,00 86 472 584,65

83 516 263,00 83 516 263,00 86 472 584,6513 533,90 13 533,90 13 533,90

83 492 729,10 83 492 729,10 86 449 050,75

10 000,00 10 000,00 10 000,00

15 468 251 687,16 938 177 105,54 14 530 074 581,62 13 979 968 523,70

Preliminary expensesExpenses to be spread over multiple years

Premium Reinbursement of bonds

Research and development assets

Patents,Trademarks, Rights & Similar ValuesGoodwill

Other intangible assets

Real Estate ConstructionsTechnical installations, equipment and toolsTransport Equipment

Furniture & Office Fixtures and Fittings

Other Tangible Assets

FINANCIAL ASSETS

INVESTMENTS ALLOCATED TO REINSURANCE OPERATIONS

MortgageOther Financial Receivables

Equity Securities

Other shares & stocks

Real Estate InvestmentsBonds and Negotiable Securities

Stocks and Shares

Loans and Similar Items

Unavailable depositsInvestments allocated to unit -linked contracts

Deposits with CedantsOther Investments

Decrease in Real Estate Receivables and Investments

Provisions for Unearned Premium

Provisions for Outstanding Claims

Provisions for Life InsuranceOther Technical Reserves

Receivables from Inward or Outward Reinsurance Operations

Receivables from EmployeesReceivables from the GovernmentReceivables from Associates

Other DebtorsAccruals - Assets

Assignees and Related Accounts Receivable

Increase in Financing and Technical Reserves

balance sheet AS at 12/31/2016 (ma)PAGE30 - ANNUAL REPORT 2016

Exercice 2015

PROVISIONS TECHNIQUES BRUTES AFFAIRES CONVENTIONNELLES

DETTES PASSIF CIRCULANTS

TOTAL

Exercice 2016

150 000 000,00315 079 429,27

13 003 624 101,98

2 158 576 476,97

1 500 000 000,00

13 428 562 080,70

2 256 702 317,05

1 500 000 000,00

150 000 000,00349 094 853,04

762 216,99

256 845 247,02

1 860 560,65

1 860 560,65112 030 000,00 9 545 500,00

112 000 000,00

30 000,00

5 004 514 698,642 815 205,00

2 344 903 917,00

2 652 957 452,00

3 838 124,64

6 053 408 504,36

441 998 731,00

4 980 657 809,00191 372 661,00

88 160 588,00

1 197 521,36

350 021 194,00

46 000,00

46 000,00

1 101 512 500,92

114 634 898,72

114 634 898,72

899 339 966,13

336 511 422,25282 003 864,35

4 981 467,70

3 888 877,55

188 594 244,88

6 547 249,50

10 232 992,5366 579 847,37

52 954 662,03

34 582 974,04

14 530 074 581,62

342 810,05

193 154 237,65

1 998 191,01

1 998 191,01

8 000 000,00

1 545 500,00

5 574 844 874,64

2 880 185 489,00

2 690 821 261,00

3 838 124,64

5 258 162 049,36

244 725 674,00

4 252 769 752,00188 106 337,00

195 976 200,00

1 197 521,36

375 386 565,00

497 010,00

497 010,00

976 344 421,72

131 967 196,94

131 967 196,94

765 050 605,13

376 834 235,86267 349 791,47

5 454 451,57

3 885 010,21

38 744 848,74

6 054 908,00

9 646 553,4857 080 805,80

48 624 250,58

30 702 369,07

13 979 968 523,70

Réserve légale

LIABILTIES

PERMANENT FINANCINGSHAREHOLDER'S EQUITY

RELATED EQUITY CAPITAL

Capital Stock

Called up Capital (not paid)To deduct: Shareholders, subscribed capital but not called up

Premium of Issue, Merger, Contribution

Translation adjustment

Other Reserves

Balance Carried ForwardNet Income to be AllocatedNet Income

Regulated Provisions

FINANCING DEBTS

DURABLE PROVISIONS FOR RISKS AND COSTS

Bond issueSettlement funds borrowingOther Financing Debt

GROSS TECHNICAL RESERVES - COMPULSORY BUSINESS

Provisions for Unearned PremiumProvisions for Outstanding LossesProvisions for Life InsuranceProvisions for Claims FluctuationsProvisions for financial hazardsTechnical Provisions for unit-linked contractsProvisions for Profit Sharing

Technical Provisions for Investments

Other Technical Provisions

TRANSLATION ADJUSTMENT- LIABILITIES

CURRENT LIABILITIES (excluding cash)DEBT FROM CASH RECEIVED FROM RETROCESSIONNAIRES

Debt from Cash Received from Retrocessionnaires

OTHER PROVISIONS FOR RISKS AND COSTS

TRANSLATION ADJUSTMENTS - CURRENT LIABILITIES

CASH LIABILITIES

Provisions for RisksProvisions for Costs

Provisions for Unearned Premium

Provisions for Outstanding LossesProvisions for Life InsuranceProvisions for Claims Fluctuations

Provisions for financial hazardsTechnical Provisions for unit-linked contractsProvisions for Profit SharingTechnical Provisions for Investments

Other Technical Provisions

Increase in Fixed Assets and Investing ReceivablesDecrease of Debt Financing and Technical Reserves

Assignees and Related Accounts ReceivableDebt from Inward and Retrocession Operations

Debt to Employees

Debt to the Government

Debt to AssociatesOther DebtorsLiabilities - Accruals

Debt to Social Organisations

balance sheet AS at 12/31/2016 (ma)PAGE31 - ANNUAL REPORT 2016

RAPPORT ANNUEL 2016

items year 2015

1

year 2016

gross ReTROCESSION NET

2

3

4

5

6

1 866 357 676,39 561 503 207,27

2 066 445 938,39 657 325 013,27 1 307 033 023,56

200 088 262,00 95 821 806,00 -2 958 559,00

60 387 415,27 68 085 199,72

2 021 302,80 3 298 129,05

58 366 112,47 64 787 070,67

1 528 214 715,46 408 145 816,66 1 135 220 189,09

1 503 386 698,46 307 717 442,66 1 338 695 173,09

192 606 485,00 199 866 028,00 -246 668 519,00

-34 597 485,00 -53 314 106,00-107 815 612,00 87 695 303,00

-25 365 371,00 -99 437 654,00 8 812 338,00179 960 566,92 149 927 194,98

218 660,6924 282 817,55 20 627 185,108 404 974,40 6 798 190,76

49 160 174,53 49 814 340,31369 939,00 374 616,00

97 524 000,75 72 022 088,95

554 253 981,61 694 320 778,49

310 166 252,14 324 415 205,088 037 805,77 37 226 763,76

638 354,91 1 162 140,8848 299 899,18 40 122 737,87

5 442 373,25 5 880 513,74

181 669 296,36 285 513 417,16

182 398 867,69 555 243 353,18

11 105 355,12 12 900 729,62

36 616 792,27 28 684 821,539 499 041,57 8 894 178,41

224 968 878,90

125 177 678,73 279 794 744,72

590 424 923,20

1 304 854 469,12

1 409 120 925,12

104 266 456,00

60 387 415,27

2 021 302,80

58 366 112,47

1 120 068 898,80

1 195 669 255,80

-7 259 543,00

-34 597 485,00-107 815 612,00

74 072 283,00179 960 566,92

218 660,6924 282 817,558 404 974,40

49 160 174,53369 939,00

97 524 000,75

554 253 981,61

310 166 252,148 037 805,77

638 354,9148 299 899,18

5 442 373,25

181 669 296,36

182 398 867,69

11 105 355,12

36 616 792,279 499 041,57

125 177 678,73

437 067 532,59153 357 390,61 232 006 823,52

1 309 991 582,56

290 773,86

PREMIUM

Written premium

Provision variation for unearned premium

TECHNICAL OPERATING REVENUEOperating subsidies

Other operating revenue

Operating write-backs, expense transfers

SERVICES AND COSTSPaid services and costs

Provision variation for incurred claims

Provision variation for life insurance

Provision variation for claims fluctuationProvision variation for financial contingencies

Provision variation for profit sharing

Variation for other technical provisions

TECHNICAL OPERATING COSTSContract acquisition costsCost of supplies and consumable materials

Other external costs

Taxes and duties

Personnel expenses

Other operating costs

Operating allowances INVESTMENT REVENUE ALLOCATED TO REINSURANCE OPERATIONS

Investment revenueForeign exchange gain

Profit on investmentProfits from investment re-evaluationInterest and other investment revenue

Release to investment costs and transfer of expenses

INVESTMENT COSTS ALLOCATED TO REINSURANCE OPERATIONS

Interest payments

Investment management fees

Exchange losses

Depreciation of reimbursement price difference

Losses on relaization of investment

Losses from investment re-evaluation

Other investment costs

Investment allocations

TECHNICAL RESULT (1+2-3-4+5-6)

PROFIT AND LOSS ACCOUNT - TECHNICAL AS AT 12/31/2016 (MAD)


1

2

3

4

itemsYEAR

OPeRATIONS

PREVIOUS YEAR

TOTALYEAR2016

YEAR 2015

5 295 731,01

-5 295 731,01

-10 167 821,86

-15 463 552,87

5 295 731,01

982 065,84

982 065,84

11 149 887,70

7 149 887,70

4 000 000,00

5 626 831,25 5 626 831,25

5 626 831,25 5 5626 831,25

- 5 626 831,25 -5 626 831,2510 907,63 407 649,13 418 556,76

4 371,63 407 649,13 412 020,76

6 536,00 6 536,00

6 536,00 6 536,004 583 778,60 138 351,48 4 722 130,08

995,10 138 351,48 139 346,58

4 576 247,50 4 576 247,50

-4 576 247,50 269 297,65 -4 303 573,32

-10 199 702,22 269 297,65 -9 930 404,57

NON TECHNICAL CURRENT REVENUE

NON TECHNICAL CURRENT EXPENSES

NON TECHNICAL NON CURRENT REVENUE

Non Technical Current Operating RevenueInterest and Other Non Technical Current Revenue

Non Technical Current Expenses

Non Technical Current Financial Costs

Other Non Technical Current Expenses

Revenue from Cessions of Long Term Assets

NON TECHNICAL NON CURRENT EXPENSES

Balance subsidiesOther Non Current Revenue

Long Term Release , Transfer of Costs

Other Non Technical Current Revenue

Non Technical Release , Transfer of Costs

Non Technical Allowances

Net Value of Depreciation of Long Term AssetsGranted Subsidies

Other Non Current Expenses

Non Current AllowancesTax Refunds and Rebates on Income

NON TECHNICAL NON CURRENT REVENUE

NON TECHNICAL NON CURRENT INCOME (3-4)

NON TECHNICAL INCOME (1-2+3-4)

TOTAL DES PRODUITS

TOTAL DES CHARGES

RÉSULTAT NET

-70 506 359,28

302 513 182,80

232 006 823,52

-15 463 552,87

216 543 270,65

23 389 033,00

193 154 237,65

396 199 389,301 676 198 171,47

2 072 397 560,77

982 065,84

2 073 379 626,61

466 705 748,581 373 684 988,67

1 840 390 737,25

16 445 618,71

23 389 033,00

193 154 237,65

1 880 225 388,96

9 602 637,73

427 464 894,86

437 067 532,59

-9 930 404,57

427 137 128,02

170 291 881,00

256 845 247,02

326 255 606,551 593 240 259,45

1 919 495 866,00

418 556,76

1 919 914 422,76

316 652 968,821 165 775 364,59

1 482 428 333,41

10 348 961,33

170 291 881,00

256 845 247,02

1 663 069 175,74

year 2015YEAR 2016TECHNICAL LIFE INSURANCE RESULT

TECHNICAL NON LIFE INSURANCE RESULT

TOTAL TECHNICAL RESULT

NON TECHNICAL RESULT

RESULT BEFORE TAXES

TOTAL LIFE INSURANCE REVENUE

TOTAL NON LIFE INSURANCE REVENUE

TOTAL TECHNICAL REVENUE

TOTAL NON TECHNICAL REVENUE

TOTAL REVENUE

TOTAL LIFE INSURANCE COSTS

TOTAL NON LIFE INSURANCE COSTS

TOTAL TECHNICAL COSTS

TOTAL NON TECHNICAL COSTS

INCOME TAX

TOTAL COSTS

NET RESULT

INCOME TAX

NET RESULT

PROFIT AND LOSS ACCOUNT - NON TECHNICAL AS AT 12/31/2016 (MAD)

PROFIT AND LOSS ACCOUNT- RECAP AS AT 12/31/2016 (MAD)


RAPPORT ANNUEL 2016

items Year 2015Year 2016

gross ReTROCESSION NET54 401 506,61 -2 443 541,30 56 845 047,91

57 216 711,61 -1 938 870,30 59 155 581,91

2 815 205,00 504 671,00 2 310 534,00

-38 229 359,02 -35 597 414,83 -2 631 944,19

534 916 021,98 31 438,17 534 884 583,81

-535 281 572,00 -35 628 853,00 -499 652 719,00

-37 863 809,00 -37 863 809,00

3 046 944,66

8 133,51

3 046 944,56

898 277,75

8 133,51

241 467,78

898 277,75

1 899 065,62

241 467,78

1 899 065,62

328 504 920,63 328 504 920,63

240 316 756,97 240 316 756,97

526 818,31 526 818,31

32 144 309,31 32 144 309,31

55 517 036,04 55 517 036,04

85 893 746,78 85 893 746,781

1 359 339,50 1 359 339,50

7 839 320,97 7 839 320,97

76 695 086,3176 695 086,31

332 195 094,82 33 153 873,53 299 041 221,29

39 136 668,26

39 136 668,26

559 005,35

559 005,35

-17 885 884,97

636 239 577,35

-635 880 200,32

-18 409 530,00

164 268,00

1 898 683,56

6 746,71

280 947,42

32 732,71

1 019 251,37

559 005,35

471 108 463,07

223 429 089,28

865 213,89

29 871 378,34

4 378 042,48

212 564 739,08

392 022 826,81

9 604 593,20

6 621 715,83

167 489 330,34

208 307 187,44

134 768 511,28

1

2

3

4

5

6

PREMIUM

TECHNICAL OPERATING REVENUE

SERVICES AND EXPENSES

Written Premium

Variation of Provisions for Unearned Premium

Technical Operating Revenue

Allowance to Operations and Transfer of Expenses

Paid Services and Expenses

TECHNICAL OPERATING COSTS

INVESTMENT REVENUE ALLOCATED TO REINSURANCE OPERATIONS

Variation of Other Technical Provisions

Variation of Provisions for Claims Incurred

Variation of Provisions for Life Insurance

Variation of Provisions for Claims FluctuationsVariation of Provisions for Financial Hazards

Variation of Provisions for Profit Sharing

Investment RevenueForeign Exchange GainRevenue from variations of reimbursement due

INVESTMENT COSTS ALLOCATED TOREINSURANCE OPERATIONS

TECHNICAL RESULT (1+2-3-4+5-6)

Contract Acquisition CostsConsumed Materials and Furniture

Other External Costs

Taxes and DutiesEmployees CostsOther Operating Costs

Operating Allowances

Profits on InvestmentsInterest and Other Investment RevenueRelease to Investment Costs and Transfer of Expenses

Interest ExpensesInvestment Management FeesForeign Exchange LossDepreciation of Variations on Reinbursement

Loss from reevaluation of investmentsOther Investment Costs

Investment Allowances

PROFIT AND LOSS ACCOUNT - TECHNICAL COMPULSORY BUSINESS AS AT 12/31/2016 (MAD)


1

2

3

4

5

6

Year 2015

TECHNIcal result (1+2-3-4+5-6)

Year 2016

1 811 956 169,78 563 946 748,57 1 248 009 421,21

2 009 229 226,78 659 263 883,57 1 349 965 343,21

197 273 057,00 95 317 135,00 101 955 922

60 387 415,27 60 387 415,27

2 021 302,80 2021302,8

58 366 112,47 58 366 112,47

1 566 444 074,48 443 743 231,49 1 122 700 842,99

968 470 676,48 307 686 004,49

727 888 057,00 235 494 881,00

660 784 671,99

3 266 324,00

492 393 176,00

-107 815 612,00

3 266 324,00

-25 365 371,00 -99 437 654,00

176 913 622,26

210 527,18

176 913 622,26

23 384 539,80

210 527,18

8 163 506,62

23 384 539,80

47 261 108,91

8 163 506,62

369 939,00

47 261 108,91

97 524 000,75 97 524 000,75369 939,00

225 749 060,98 225 749 060,98

69 849 495,17 69 849 495,178 037 805,77 8 037 805,77

111 536,60

16 155 589,87111 536,6

16 155 589,87

5 442 373,25 5 442 373,25

126 152 260,32 126 152 260,32

96 505 120,91 96 505 120,91

9 746 015,62 9 746 015,62

36 616 792,27 36 616 792,27

1 659 720,60 1 659 720,6

48 482 592,42 48 482 592,42

258 229 828,38 120 203 517,08 138 026 311,3

1 270 854 914,30

1 267 896 355,30

-2 958 559,00

67 526 194,37

3 298 129,05

64 228 065,32

1 153 106 074,06

702 455 595,74

389 211 681,32

-34 904 576,00

87 695 303,00

8 648 070,00

148 028 511,42

284 027,15

20 346 237,68

6 765 458,05

48 795 088,94

374 616,00

71 463 083,60

223 212 315,42

100 986 115,8037 226 763,76

296 926,99

10 251 359,53

1 502 471,26

72 948 678,08

163 220 526,37

3 296 136,42

28 684 821,53

2 272 462,58

57 479 548,56

71 487 557,28

97 238 312,24

-107 815 612,00

74 072 283,00

ITEMS

GROSS RETROCESSION NET

PREMIUM

TECHNICAL OPERATING REVENUE

PRESTATIONS ET FRAIS

Written Premium

Variation of Provisions for Unearned Premium

Technical Operating RevenueAllowance to Operations and Transfer of Expenses

Paid Services and Costs

TECHNICAL OPERATING COSTS

INVESTMENT REVENUE ALLOCATED TOREINSURANCE OPERATIONS

Variation of Other Technical Provisions

Variation of Provisions for Claims Incurred

Variation of Provisions for Life Insurance

Variation of Provisions for Claims FluctuationsVariation of Provisions for Financial Hazards

Variation of Provisions for Profit Sharing

Investment RevenueForeign Exchange GainRevenue from variations of reimbursement due

INVESTMENT COSTS ALLOCATED TOREINSURANCE OPERATIONS

Contract Acquisition CostsConsumed Materials and Furniture

Other External Costs

Taxes and DutiesEmployees CostsOther Operating Costs

Operating Allowances

Profits on InvestmentsInterest and Other Investment RevenueRelease to Investment Costs and Transfer of Expenses

Interest ExpensesInvestment Management FeesForeign Exchange LossDepreciation of Variations on Reimbursement

Loss on investmentsOther Investment Costs

Investment Allowances

PROFIT AND LOSS ACCOUNT - TECHNICAL CONVENTIONAL BUSINESS AS AT 12/31/2016 (MAD)


RAPPORT ANNUEL 2016

ANNUAL CONSOLIDATED FINANCIAL STATEMENTS

FINANCIAL YEAR 2016




RAPPORT ANNUEL 2016PAGE38 - ANNUAL REPORT 2016

(All amounts in MAD thousands, unless otherwise stated.)

AUDIT REPORT ON CONSOLIDATED FINANCIAL STATEMENTSFINANCIAL YEAR 2016

We have audited the accompanying consolidated financial statements of Société Centrale de Réassurance (SCR) and its subsidiaries, which comprise the consolidated statement of financial position as at 31 December 2016, and the consoli-dated statement of comprehensive income, the statement of changes in equity, the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory notes. These consolidated financial state-ments show a consolidated equity of MAD3,985,583, including a consolidated net profit of MAD191,158.

MANAGEMENT’S RESPONSIBILITYManagement is responsible for the preparation and fair presentation of these financial statements, in accordance with In-ternational Financial Reporting Standards. Such responsibility includes the design, establishment, and follow-up on internal control relevant to the preparation and presentation of consolidated financial statements that are free from material miss-tatement, whether due to fraud or error, as well as determining reasonable accounting estimates under the circumstances.

AUDITOR’S RESPONSIBILITYOur responsibility is to express an opinion on these financial statements based on our audit. We have conducted our audit in accordance with the Industry Standards applicable in Morocco. These standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about 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 in the financial statements, whether due to fraud or error. In making those risk assessments, the auditor consi-ders 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 effec-tiveness 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 consolidated 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 consolidated financial statements referred to in the first paragraph give, in all their material aspects, a true and fair view of the financial position of Société Centrale de Réassurance as at 31 December 2016, and of their financial performance and their cash flows for the year then ended, in accordance with International Financial Reporting Standards.

Casablanca, 25 September 2017

Abdou Souleye DiopManaging Partner


Consolidated Financial Statements- Consolidated Balance Sheet

ASSETS ( In thousands of dirhams as at 31 December )Other intangible assets

Operating properties and other tangible assets

Tangible and intangible assets

Investment property

Available-for-sale financial assets

Financial assets at fair value through income statement

Loans and receivables

Investments

Investments in equity affiliates

Share of retrocessionaires in liabilities relating to insurance contracts

Receivables arising from accepted reinsurance transactions

Receivables arising from ceded reinsurance transactions

Deferred tax assets

Tax receivables due

Other receivables

Other assets

Cash and cash equivalents

TOTAL ASSETS

31/12/20163,844

27,801

31,645

15,471

9,652,013

1,603,060

1,192,531

12,463,076

108,258

2,040,258

1,107,779

214,455

112,884

114,939

70,248

1,620,304

83,516

16,347,057

31/12/20155,541

32,444

37,985

17,960

8,937,643

1,539,459

1,185,079

11,680,141

107,687

1,862,084

818,847

134,556

72,745

138,328

26,155

1,190,632

217,723

15,096,251

LIABILITIES ( In thousands of dirhams as at 31 December ) Share capital

Consolidated reserves

Revaluation reserves

Net income

Shareholders’ equity – group share

Non-controlling interests – minority interests

Total shareholders’ equity

Financing debts

Provisions for risks and charges

Technical liabilities relating to insurance contracts

Technical liabilities relating to investment contracts

Participation in deferred profit liabilities

Liabilities relating to insurance and investment contracts

Debts arising from accepted reinsurance transactions

Debts arising from ceded reinsurance transactions

Deferred tax liabilities

Tax debts due and other tax debts

Other operating debts

Other liabilities

TOTAL EQUITY AND TOTAL LIABILITIES

31/12/20161,500,000

1,122,683

1,171,742

191,158

3,985,583

-

3,985,583

1,861

66,931

9,053,121

919,106

213,831

10,186,058

282,004

451,146

1,159,229

188,594

25,651

2,106,625

16,347,057

31/12/20151,500,000

1,130,376

721,830

101,767

3,453,972

-

3,453,972

1,998

60,577

8,711,224

922,271

103,117

9,736,612

267,350

508,801

953,735

38,745

74,460

1,843,092

15,096,251

RAPPORT ANNUEL 2016

Consolidated Statement of Comprehensive Income - Consolidated Statement of Income


Statement of net income and other elements of comprehensiv

Documents

STRATEGIC transformation PLAN stronG IIPAGE4 - RAPPORT ANNUEL 2016 STRONG IIPLAN DE TRANSFORMATION SUMMARY. PAGE5 A CREATIVE VISION ... Coopers Audit Morocco - ANNUAL REPORT 2016 1