2
ASIAN REINSURANCE CORPORATION
VISION & MISSION VISION
To become a leading professional reinsurer capable to meet the reinsurance needs of Asia - Pacific Region.
MISSION “1.
The Corporation shall operate as a professional reinsurer accepting business from the insurance markets in member States as well as other markets of the region and elsewhere, and shall retrocede its surpluses after net retention with priority given to the national insurance and reinsurance markets of the member states.
2.
The Corporation shall invest a sizeable proportion of its funds within the region, provided that such investments meet with the requirements of sound insurance techniques.
3.
The Corporation shall also serve as regional centre for the collection of insurance information and the development of expertise in insurance and reinsurance, to be put at the disposal of the national insurance markets of the member States.
4.
The Corporation shall provide technical assistance to the national insurance markets of the member States.�
ASIAN REINSURANCE CORPORATION ANNUAL REPORT 2010
13
PAGE
• Council of Members
3
• Associate Members
4
• Chairman’s statement
5
• Report of the Management Board
7
• Certificate by Auditors
13
• Balance Sheets
14
• Profit and Loss Accounts
16
• Profit and Loss Appropriation Accounts
17
• Statements of change in shareholders’ equity
18
• Fire Insurance Revenue Accounts
19
• Marine Insurance Revenue Accounts
20
• Miscellaneous Insurance Revenue Accounts
21
• Statement of Cash Flows
22
• Notes to Financial Statements
23
• Certificate by Management Board
37
• Senior Management
38
2
ASIAN REINSURANCE CORPORATION
COUNCIL OF MEMBERS
Dr. Abdolnaser Hemmati Managing Director & CEO Sina Bank
IRAN
Engr. Ahmad Shah “Alizai” President Afghan National Insurance Co.
AFGHANISTAN
Mr. Zhang Hong Vice President
China Reinsurance (Group) Corporation
CHINA
HON. Emmanuel F. Dooc Insurance Commissioner
THE PHILIPPINES
Mr. Md. Rezaul Karim Managing Director Sadharan Bima Corporation
BANGLADESH
Mr. Yogesh Lohiya Chairman-cum-Managing Director General Insurance Corp. of India
INDIA
Ms. G.D.C. Ekanayake Director General
Department of National Budget Ministry of Finance and Planning
SRI LANKA
Mr. Namgyal Lhendup CEO Royal Insurance Corp. of Bhutan
BHUTAN
Mr. Jong Won Park CEO Korean Reinsurance Company
REPUBLIC OF KOREA
Mrs. Chantra Purnariksha Secretary-General Office of Insurance Commission
THAILAND
ANNUAL REPORT 2010
3
Associate Members
4
ASIAN REINSURANCE CORPORATION
Chairman’s Statement
Dr. Abdolnaser Hemmati CHAIRMAN It is my pleasure and privilege to welcome the distinguished members of the Council from member states and representatives of Associate members to the fifth Shareholders’ Assembly of the Asian Reinsurance Corporation.
You have received the financial statements and external auditor’s report for the year ending 31st December 2010 as well as the Management Board Report and would already be aware of our Corporation’s successful conclusion of the year 2010.
The year had its peculiar challenges. Whilst the global disasters hardened our own retrocession arrangements it did not prevent the downward spiral of rates in the countries from where we source our business and that too across all lines. Despite this, our ability to manage a soft phase in the region in an otherwise hardening environment was one of our key success factors. We achieved this by consistently avoiding writing under-rated businesses. We took the opportunity to re-underwrite renewals, weeding and pruning unprofitable and over exposed programmes and portfolios focusing on profit. Simultaneously, we continued to grow in selected segments through business relationships forged and nurtured over the years. We could increase gross premium to US$ 57.54 mn - a growth of 8.6% against 2009.
The global financial crisis and its impact on insurance industry for the past few years have made us acutely aware of the need to revisit the fundamentals of business and to stay
grounded in the ‘basics’. Thus, ‘Back to basics’ became the corporate theme for the year. Our efforts at improving the quality of acquired portfolios, reviewing of our underwriting guidelines based on territory-wise experiences, re-assessing exposures were part of the ‘back to basics’ strategy. This has contributed to improving loss ratio to 60.3% from 66.7% in the previous year. We believe that over time the performance of our book of business will validate our current strategy.
We have been very prudent in our expense management. We are a lean organization and shall continue to be so with focus on high productivity. Year on year we had brought down our expense ratio despite growth in volume. Our management expenses was 6.5% in 2005. After 5 years and with more than double the premium, the expenses fell to 4.5% in 2010. Acquisition costs continue to remain a challenge due to proportional treaties that we write with high commission cost. A number of strategies are being pursued to reduce this cost. We have, however, succeeded in maintaining commission cost at the same percentage of 33.4% as in 2009. Thus our combined ratio improved to 98.2% from 103.8% in the previous year.
Our performance in investment needs a special mention. We have a highly liquid portfolio of assets with 94% in bank deposits with member countries. The downside of this has been the low interest rates. Nevertheless, we have been able to increase investment income by 4.8% to US$ 2.27 mn through a process of gradual diversification of the investment portfolio. Considering the low underwriting returns even under the best
ANNUAL REPORT 2010
5
Chairman’s Statement Thailand and are working with the Office of the Insurance Commission to be compliant with regulations pertaining to this.
of circumstances, it was decided to set up a dedicated investment division in the Corporation.
The underwriting profit of the year has provided us relief in an already low interest rate environment . I am very happy to announce that Asian Re has doubled the profit of the previous year and has achieved a net operating profit of US$ 2.78 mn in 2010. I am equally pleased to report a return on capital and surplus of 5.28% as against 2.75% in 2009.
We have come a long way; a history of 30 years in which time we had matured into a reliable partner for our customers. The trust of the many stakeholders – clients, intermediaries, regular members and associate members - have continued to be our abiding strength. With the opening of membership to non-governmental entites, we have increased Shareholders’ funds to US$ 54.72 mn. and have increased our Associate membership to 8. The Council approved admission of 3 more Associate-members as new shareholders. They are in different stages of obtaining clearance for remittance of subscription. The efforts to bring in new members to the organization will be pursued vigorously.
I take this opportunity to convey my sincere thanks to the Royal Thai Government, Officers of the Insurance Commission of Thailand and officers of UN-ESCAP for their continued support in our efforts to fulfill the Corporation’s mission.
Despite the return to underwriting profits, we had our share of mishaps too. Though we were able to steer clear of major catastrophes in the region, the unprecedented Thailand floods of October and November turned the host country portfolio – our major market - into a loss. The Pedang earthquake in Indonesia, typhoon ‘Ketsana’ in the Philippines in the preceding year have brought home once again the havoc natural catastrophes could wreak. The management of natural catastrophe losses assumed greater significance because of the recurring losses in the region. We are fully aware that our ability to track and detail out accumulation and to arrange sound and adequate retroprogramme will be crucial to our long-term sustainability. I am also grateful to our Associate-members for their interest and commitment to the growth of Asian Re. Infrastructure development to create and sustain smooth processes with end service quality in mind, was yet another key task we had taken up. We have invested in a stateof-the-art software and the implementation is in full-swing which eventually would help further improve our analytics and customer service.
We have been able to maintain the A M Best financial rating of’ B++’ and issuer credit rating of ‘bbb.’ We are also gearing ourselves for the ‘Risk Based Capital’ regime of Thailand which will come into effect in 2011. To leverage this, we have already re-positioned Asian Re as a ‘dynamic domestic reinsurer’ for
I am thankful to the distinguished members of the Council for their time and valuable guidance.
And we shall not forget our employees, who are the backbone of the Corporation. They deserve a special mention for their commitment and dedication to work which has made Asian Re what it is today.
Dr. Abdolnaser Hemmati CHAIRMAN
6
ASIAN REINSURANCE CORPORATION
Report of the Management Board FOR THE YEAR ENDED 31st DECEMBER 2010
The report for the year 2010 and the 31st Statement of accounts for the year ended 31 December 2010 are presented below:
Highlights 2010 was a breakthrough year in which we were able to achieve significant improvement in performance whilst excelling in a few. Highlights of 2010 performance are:
• Gross written premium increased by 8.6% to US$ 57.54 mn.
• Net written premium increased from US$ 31.05 mn to US$ 33.50 mn in 2010, reflecting an increase of 7.89%.
• Earned premium grew by 10.80% from US$ 29.34 mn to US$ 32.52 mn in 2010.
• Improvement in Loss ratio to 60.3% from 66.7% of 2009.
• Increased net operating profit of US$ 2.78 mn against US$ 1.39 mn for 2009. Profit grew by 100.8%.
• Turnaround in underwriting performance from a loss of (US$ 1.74 mn) to a profit of US$ 0.20 mn in 2010.
• Improved combined ratio of 98.2% as against 103.8% of 2009.
• Investment income increased from US$ 2.16 mn in 2009 to US$ 2.27 mn in 2010.
• Shareholders’ funds grew by 3.8% to US$ 54.72 mn.
• Total assets increased to US$ 101.69 mn from US$ 93.45 mn of 2009.
• A.M.Best Co has affirmed financial strength rating of B++(Good) and issuer credit rating of “bbb” with “stable”
outlook for the 3rd consecutive year.
ANNUAL REPORT 2010
7
Report of the Management Board FOR THE YEAR ENDED 31st DECEMBER 2010 Operations Gross Written Premium Gross Written Premium (GWP) registered a growth of 8.6% in 2010 to record a premium income of US$ 57.54 mn. against US$ 52.98 mn. in 2009. The compounded annual growth rate for the five year period 2006-10 was 15.5%. Class wise analysis of Gross written premium is as follows:
In US$ mn Growth in 2010
Class
2009
Portfolio mix 2009
2010
Portfolio mix 2010
Fire
25.30
47.8%
27.50
47.8%
8.7%
Marine
6.80
12.8%
8.13
14.1%
19.5%
Motor
3.17
6.0%
2.53
4.4%
(20.2)%
Engineering
4.37
8.2%
5.90
10.3%
35.0%
Miscellaneous Total
13.34 52.98
25.2% 100.0%
13.48 57.54
23.4% 100.0%
1.0% 8.6%
• Business from Thailand, Singapore and India contributed to growth in fire.
• Increase in Marine portfolios was due to growth from Korea, India & the Philippines. Facultative business from the Middle East was another factor.
• Motor premium dropped due to non renewal of Thailand motor treaties, whose terms were unfavourable.
• Engineering growth is mainly due to the contribution from India and Korea.
• Despite premium increases from India, Indonesia & Singapore, miscellaneous portfolios remained constant due to cancellation of non-profitable treaties.
Facultative premium recorded a growth of 10.3% in 2010 (US$6.64 mn.) and contributed 11.54% to the GWP. Thailand and the Middle East continued to be the major markets for facultative growth.
Proportional treaty premium grew by 8.4% in 2010. Non-proportional premium growth was 3.6%.
Source of premium income: 2009
% of total
2010
% of total
In US$ mn Growth in 2010
Host country - Thailand
24.05
45.4%
24.18
42.0%
0.5%
Other member countries
20.96
39.5%
23.78
41.4%
13.5%
Countries in the ESCAP region
5.55
10.5%
6.68
11.6%
20.4%
Other countries Total
2.42 52.98
4.6% 100%
2.90 57.54
5.0% 100%
19.8% 8.6%
8
ASIAN REINSURANCE CORPORATION
Report of the Management Board FOR THE YEAR ENDED 31st DECEMBER 2010
• Due to our focus on underwriting profits, contracts which produced recurring adverse results were weeded out. • India and Korea registered growth of 23% and 27% respectively contributing mainly to the premium growth of member- countries. • Malaysia, Nepal and Singapore contributed significantly to the premium income of countries in the ESCAP Region.
• The increase in premium volume of “other countries” was mainly due to premium income from the Middle East.
Source of premium 2010
Gross and net premium (US$ mn)
5.0%
70.00 11.6%
42.0%
Host country Other member countries
60.00
Countries in the ESCAP region Other member countries 41.4%
45.72
40.00 30.00
33.50
32.65 27.91
20.00 10.00
57.54
52.98
50.00
16.02
26.78
31.05
19.16
2006
2007
Gross premium
2008
2009
2010
Retained premium
Net written and earned premium The net retained premium grew by 7.89% from US$ 31.05 mn to 33.50 mn whilst retention as a percentage of gross written premium remained at 58% The net earned premium increased to 32.52 mn from 29.34 mn registering a growth of 10.80%.
Acquisition costs Due to continuing efforts in controlling acquisition costs, the ratio of commission and charges to net premium has remained constant at 33.4% for two years.
Management expenses Management expenses as a ratio of net premium was 4.5% as against 3.7% in 2009 mainly on account of expenses incurred on severance payments to Professional staff, recruitment of new staff and appreciation of local currency.
Incurred losses The net earned loss ratio improved to 60.3% from 66.7% of last year. This was due to pruning of loss making contracts coupled with the absence of large losses in our major markets.
The major loss events of the year were Thai floods of October and November 2010. Natural catastrophe losses continue to be the overarching factor impinging underwriting results.
ANNUAL REPORT 2010
9
Report of the Management Board FOR THE YEAR ENDED 31st DECEMBER 2010
Combined ratio The reduction in net loss ratio, stable commission outgo of 33.4% and expense ratio of 4.5% enabled us to achieve a combined ratio of 98.2%.
In US$ mn
The comparative figures for the net account by class of business were as follows:
2010
2009
CHANGE
Gross premium
27.50
25.30
+ 8.7%
Net premium
13.42
12.77
+ 5.0%
Claims incurred to earned premium
52.0%
58.9%
( 6.9%)
Commission & other charges Marine
39.3%
38.0%
+1.3%
Gross premium
8.13
6.80
+ 19.5%
Net premium
5.62
4.68
+ 20.1%
Claims incurred to earned premium
64.9%
88.0%
(23.1%)
Commission & other charges Miscellaneous
24.5%
24.6%
(0.1%)
Gross premium
21.91
20.88
+ 4.9%
Net premium
14.46
13.60
+ 6.3%
Claims incurred to earned premium
66.4%
67.5%
(1.1%)
Commission & other charges
31.4%
32.0%
(0.6%)
Fire
Investment Income Interest and other income increased to US$ 2.27 mn against 2.16 mn in 2009 despite continuing low interest rates.
Large part of the funds of the Corporation are still kept in fixed deposits with banks of member countries in line with the investment guidelines. 84% of the funds are in US dollars. US dollar interest rates are still at historical low levels.
During the year we increased investment in sovereign and corporate bonds with a view to increase yield.
Cash and bank balances and deposits as at 31st December 2010 stood at US$ 72.7 mn against US$ 73.4 mn of 2009. The reduction in bank balances was due to deployment of more funds to bonds.
Exchange gain An exchange gain of US$ 0.35 mn was recorded as against a gain of US$ 0.57 mn booked in 2009. Though Asian currencies appreciated during the year, it was neutralized by the depreciation of our investments in Euro.
10
ASIAN REINSURANCE CORPORATION
Report of the Management Board FOR THE YEAR ENDED 31st DECEMBER 2010
Technical reserves Technical reserves increased to US$ 34.8 mn as against US$ 30.3 mn as at end of last year constituting 104.0% of the net written premium for 2010.
The underwriting profit for 2010 was US$ 0.2 mn as against an underwriting loss of US$ 1.7 mn. of 2009. The decrease in net losses incurred contributed to the marginal profit.
Underwriting Results Fire 1,047.3 Marine 464.1 Miscellaneous 197.6 Expenses of Management Underwriting profit / (loss) Investment and other income Net profit before tax and other charges Other charges 354.5 Exchange gain (17.0) Income tax (23.8) Provision for doubtful debts Net Total operating profit
In US$ ‘000 1,709.0 1,505.1 203.9 2,265.3 2,469.2
313.7 2,782.9
The net operating profit was US$ 2.78 mn in 2010 as against US$ 1.39 mn of 2009. This translates into an improvement of 100.8%. This was possible due to improved performance in all key areas.
The total assets as at the end of 2010 grew by US$ 8.81% to US$ 101.69 mn (Previous year US$ 93.45). The shareholders funds as at the end of 2010 were US$ 54.72 mn as compared to US$ 52.70mn of 2009 registering an increase of 3.8%.
Total Assets and Shareholders’ Funds 120.00 101.69
100.00 93.45 83.91
80.00 60.00
77.26
Total Assets 56.90 51.86
40.00
50.38
52.70
54.72
Shareholders’ funds
33.80
20.00 -
2006
2007
2008
2009
2010
Auditors The Council of Members appointed KPMG Phoomchai Audit Ltd as Auditors for 2010.
ANNUAL REPORT 2010
11
Report of the Management Board FOR THE YEAR ENDED 31st DECEMBER 2010 Membership The Regular members and Associate members of the Corporation as at the end of 2010 stood at 10 countries and 8 Companies respectively. The Management is continuing its efforts to increase membership and enhance capital of the Corporation. Three new prospective Associate Members whose applications were approved by the Council are awaiting clearance from the concerned authorities to remit their subscription. The paid up capital as at 31st December 2010 remains at US$ 30.23 mn. Member countries – Regular Members – constitute the Council of Members of the Corporation wherein each government nominates one representative. In the Shareholders’ Assembly, Regular Members are represented by their respective Council Member whereas Associate Members are represented by designated representatives.
Training and other activities
The Corporation conducted its annual seminar for the region in Bangkok on “Principles and Practice of Reinsurance” during October 4 – 8, 2010. It was attended by 28 participants from 10 countries. Several in-house programmes were held to upgrade the technical skill of staff.
The Corporation is in the midst of upgrading its software to meet its growing business needs. This would also help serve our clientele more efficiently.
As at 31 December 2010 the Corporation had 9 officers and 19 administrative staff. As a lean organization, our success depends on peak performance of staff. Their dedication, application and commitment are praiseworthy and are reflected in our operational achievements.
12
ASIAN REINSURANCE CORPORATION
KPMG Phoomchai Audit Ltd.
Empire Tower, 50th-51st Floors 195 South Sathorn Road Bangkok 10120, Thailand
บริษัท เคพีเอ็มจี ภูมิไชย สอบบัญชีจำกัด ชั้น50-51 เอ็มไพร์ทาวเวอร์ Tel: +66 2677 2000 195 ถนนสาทรใต้ Fax: +66 2677 2222 กรุงเทพฯ 10120 www.kpmg.co.th
Audit report of Certified Public Accountant To The Shareholders’ Assembly We have audited the accompanying balance sheet of Asian Reinsurance Corporation (“the Corporation”) as at 31 December 2010 and the related fire, marine and miscellaneous insurance revenue accounts, profit and loss account, profit and loss appropriation account and statements of change in equity and cash flows for the year then ended. The Corporation’s management is responsible for the correctness and completeness of information presented in these financial statements. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of the Corporation for the year ended 31 December 2009 were audited by another auditor whose report dated 18 February 2010 expressed an unqualified opinion on those statements. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Asian Reinsurance Corporation and the result of its operations and cash flows for the year then ended in accordance with the provisions of the agreement establishing the Corporation and guidelines issued by the Council of Members, as described in note 2 to the financial statements.
KPMG Phoomchai Audit Ltd. Bangkok 22 April 2011
ANNUAL REPORT 2010
13
Balance Sheets As at 31st December 2010 and 2009 In U.S. Dollars Note
2010
2009
EQUITY AND LIABILITIES EQUITY
Share capital
15
Authorised share capital
Subscribed and paid-up share capital
Share premium
16
Reserves
17
Statutory reserve
Contingency reserve
Unrealised gain on revaluation of investments
9
Profit and Loss Appropriation Account
Total equity
100,000,000
100,000,000
30,239,000
30,239,000
15,610,000
15,610,000
2,325,852
2,047,561
500,000
500,000
62,479
-
5,980,286
4,307,240
54,717,617
52,703,801
LIABILITIES
Reserves for unexpired risks
Fire
5,366,035
5,107,777
Marine
2,248,203
1,871,354
Miscellaneous
5,783,952
5,438,909
13,398,190
12,418,040
Reserves for outstanding claims
Fire
8,925,131
7,415,934
Marine
3,575,292
3,468,248
Miscellaneous
8,957,021
6,977,434
21,457,444
17,861,616
161,464
167,821
Provision for expenses incurred but not paid
Reserve held on reinsurance retroceded
4,843,323
4,684,787
Amounts due to other insurance or reinsurance companies
7,092,590
5,608,141
Sundry creditors
16,966
8,494
46,969,977
40,748,899
101,687,594
93,452,700
8
Total liabilities Total equity and liabilities
(The accompanying notes are an integral part of the financial statements)
14
ASIAN REINSURANCE CORPORATION
Balance Sheets As at 31st December 2010 and 2009 In U.S. Dollars Note
2010
2009
9
4,655,295
2,463,244
10
153,879
215,431
872,426
706,967
12,505,806
11,829,421
11
10,308,737
4,641,859
12
71,902,896
73,363,157
ASSETS
Investments, net
Office condominium, net
Interest and dividend accrued
Reserves held by ceding companies
Amounts due from insurers or reinsurers, net
Cash balances with banks and on hand:
Short-term deposits and current accounts
Cash on hand
15,658
6,881
Saving accounts
813,465
87,796
Furniture, fixtures, vehicles and office equipment, net
166,502
87,340
Sundry debtors
3,063
3,774
Advances, deposits and prepaid expenses
289,867
46,830
101,687,594
93,452,700
13
14
Total assets
(The accompanying notes are an integral part of the financial statements)
ANNUAL REPORT 2010
15
Profit And Loss Accounts For the years ended 31st December 2010 and 2009 In U.S. Dollars Note
2010
2009
6
2,014,686
2,135,252
19
(16,977)
(8,119)
1,997,709
2,127,133
REVENUES
Interest and dividends
Less income tax deductions
Interest and dividends, net
Profit transferred from Revenue Accounts
Fire
444,576
-
Marine
211,515
-
Miscellaneous
-
-
Gain on revaluation of investments
9
-
416,610
Miscellaneous income
7
281
20,893
354,509
576,584
250,325
5,022
3,258,915
3,146,242
Gain on exchange Gain on sale of investments
6
Total
EXPENSES
Loss transferred from Revenue Accounts
Fire
-
98,886
Marine
-
812,552
Miscellaneous
452,174
834,190
23,831
14,601
2,782,910
1,386,013
3,258,915
3,146,242
Doubtful debts expense
Balance being profit for the year carried forward
to Profit and Loss Appropriation Account
Total
(The accompanying notes are an integral part of the financial statements)
16
ASIAN REINSURANCE CORPORATION
Profit And Loss Appropriation Accounts For the years ended 31st December 2010 and 2009 In U.S. Dollars Note
2010
2009
4,307,240
3,223,392
Profit transferred from Profit and Loss Account
2,782,910
1,386,013
Total
7,090,150
4,609,405
278,291
138,601
831,573
163,564
5,980,286
4,307,240
7,090,150
4,609,405
Profit and Loss Appropriation balance
at the beginning of the year
Transfer to statutory reserve Dividend for the year
18
Balance being profit and loss appropriation
carried forward
Total
(The accompanying notes are an integral part of the financial statements)
ANNUAL REPORT 2010
17
18
ASIAN REINSURANCE CORPORATION
-
Transfer to statutory reserve
Dividend
(The accompanying notes are an integral part of the financial statements)
30,239,000
-
Total recognised income
Balance at 31 December 2010
-
Profit for the year
-
9
Total income recognised directly in equity
Unrealised gain on revaluation of investments
30,239,000
500,000
15
Issue of shares
Balance at 31 December 2009 and 1 January 2010
-
-
Transfer to statutory reserve 18
-
Total recognised income
Dividend
-
29,739,000
capital
15,610,000
-
-
-
-
-
-
15,610,000
600,000
-
-
-
-
15,010,000
premium
paid-up share
Profit for the year
Balance at 1 January 2009
Note
Share
Subscribed and
2,325,852
-
278,291
-
-
-
-
2,047,561
-
-
138,601
-
-
1,908,960
reserve
Statutory
500,000
-
-
-
-
-
-
500,000
-
-
-
-
-
500,000
reserve
Contingency
Reserves
62,479
-
-
62,479
-
62,479
62,479
-
-
-
-
-
-
-
5,980,286
(831,573)
(278,291)
2,782,910
2,782,910
-
-
4,307,240
-
(163,564)
(138,601)
1,386,013
1,386,013
3,223,392
Account
Appropriation
on revaluation of investments
Profit and Loss
Unrealised gain
54,717,617
(831,573)
-
2,845,389
2,782,910
62,479
62,479
52,703,801
1,100,000
(163,564)
-
1,386,013
1,386,013
50,381,352
Total
In U.S. Dollars
For the years ended 31st December 2010 and 2009
Statements of changes in equity
Fire insurance revenue accounts For the years ended 31st December 2010 and 2009 In U.S. Dollars Note
2010
2009
5,107,777
5,070,660
13,415,088
12,769,444
-
98,886
18,522,865
17,938,990
5,327,540
6,151,457
8,925,131
7,415,934
(7,415,934)
(6,063,472)
6,836,737
7,503,919
5,226,105
4,810,701
602,802
469,255
46,610
47,338
5,366,035
5,107,777
444,576
-
18,522,865
17,938,990
REVENUES
Balance of account at the beginning of the year
Reserve for unexpired risks
Premium - net of reinsurances
Loss transferred to Profit and Loss Account
5
Total EXPENSES
Claims incurred - net of reinsurances :
Paid during the year
Estimated liabilities for outstanding claims at
the end of the year
Less outstanding claims at the beginning of the year
Net commission
Expenses of management
Miscellaneous outgo
Balance of account at the end of the year
Reserve for unexpired risks
Profit transferred to Profit and Loss Account
Total
8
(The accompanying notes are an integral part of the financial statements)
ANNUAL REPORT 2010
19
Marine insurance revenue accounts For the years ended 31 December 2010 and 2009 st
In U.S. Dollars Note
2010
2009
1,871,354
1,443,864
5,620,507
4,678,384
-
812,552
7,491,861
6,934,800
3,296,917
2,629,431
3,575,292
3,468,248
(3,468,248)
(2,358,916)
3,403,961
3,738,763
Net commission
1,349,601
1,140,829
Expenses of management
252,556
171,922
Miscellaneous outgo
26,025
11,932
Balance of account at the end of the year 2,248,203
1,871,354
211,515
-
7,491,861
6,934,800
REVENUES
Balance of account at the beginning of the year
Reserve for unexpired risks
Premium - net of reinsurances
Loss transferred to Profit and Loss Account
5
Total EXPENSES
Claims incurred - net of reinsurances :
Paid during the year
Estimated liabilities for outstanding claims at
the end of the year
Less outstanding claims at the beginning of the year
8
Reserve for unexpired risks
Profit transferred to Profit and Loss Account
Total
(The accompanying notes are an integral part of the financial statements)
20
ASIAN REINSURANCE CORPORATION
Miscellaneous insurance revenue accounts For the years ended 31st December 2010 and 2009 In U.S. Dollars Note
2010
2009
5,438,909
4,200,485
14,459,881
13,597,272
452,174
834,190
20,350,964
18,631,947
7,396,916
5,766,881
8,957,021
6,977,434
(6,977,434)
(4,403,311)
9,376,503
8,341,004
Net commission
4,462,690
4,256,433
Expenses of management
649,751
499,676
Miscellaneous outgo
78,068
95,925
Balance of account at the end of the year 5,783,952
5,438,909
20,350,964
18,631,947
REVENUES
Balance of account at the beginning of the year
Reserve for unexpired risks
Premium - net of reinsurances
Loss transferred to Profit and Loss Account
5
Total EXPENSES
Claims incurred - net of reinsurances :
Paid during the year
Estimated liabilities for outstanding claims at
the end of the year
Less outstanding claims at the beginning of the year
8
Reserve for unexpired risks
Total
(The accompanying notes are an integral part of the financial statements)
ANNUAL REPORT 2010
21
Statements of cash flows For the years ended 31st December 2010 and 2009 In U.S. Dollars Note
2010
2009
2,782,910
1,386,013
103,972
86,268
23,832
14,601
Gain on sale of investments
(250,325)
(5,022)
Gain on disposal of fixed assets
(248)
(7)
Gain on revaluation of investments
-
(416,610)
Unrealised gain on exchange
(412,693)
(707,475)
2,247,448
357,768
980,150
1,703,031
Reserve for outstanding losses
3,595,828
5,035,916
Reinsurance payables
1,347,224
190,910
Reinsurance receivables
(5,647,202)
(3,324,091)
Other payables
2,126
5,594
Other receivables
(434,377)
(113,794)
2,091,197
3,855,334
Purchase of fixed assets
(121,608)
(50,035)
Purchase of investments
(5,559,625)
(823,819)
Proceeds from the sale of fixed assets
274
20
Proceeds from the sale of investments
3,677,517
483,626
(2,003,442)
(390,208)
Proceeds from issue of equity shares
-
1,100,000
Dividend paid to equity holders of the Corporation
(831,573)
(163,564)
Net cash (used in) provided by financing activities
(831,573)
936,436
(743,818)
4,401,562
73,457,834
68,809,924
18,003
246,348
72,732,019
73,457,834
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year Adjustments for : Depreciation Doubtful debts expense
CHANGES IN Reserve for unexpired risks
Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Net (decrease) increase in cash Cash at beginning of year
4(b)
Effect of exchange rate changes on cash Cash at end of year
4(b)
(The accompanying notes are an integral part of the financial statements)
22
ASIAN REINSURANCE CORPORATION
Notes to the financial statements For the years ended 31st December 2010 and 2009
These notes form an integral part of the financial statements. 1. GENERAL INFORMATION
Asian Reinsurance Corporation (“the Corporation”) is a regional intergovernmental organization established in 1979 through the initiative of United Nations Economic and Social Commission for Asia and the Pacific (“UN/ESCAP”). The Corporation is governed by the provisions and protocols of the agreement establishing the Corporation (“the Agreement”). The registered address of the Corporation’s headquarter office is 17th the Floor, Tower B, Chamnan Phenjati Business Center, 65 Rama 9 Road, Huaykwang, Bangkok.
The principal activities of the Corporation is that of a professional reinsurer accepting business from the insurance markets in member states as well as other markets of the region and elsewhere, and retroceding its surpluses after net retention with priority given to the national insurance and reinsurance markets of the member states.
2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
The financial statements are prepared in accordance with the provisions of the Agreement and guidelines issued by the Council of Members (“the Provisions and Guidelines”).
The financial statements are prepared on the historical cost basis except as stated in the accounting policies. They are prepared and presented in United States Dollars (“US$”).
The preparation of financial statements in conformity with the Provisions and Guidelines requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate are revised in any future period affected.
3. CHANGES IN ACCOUNTING POLICIES
(a) Foreign currency transactions
From 1 January 2010, the Corporation has changed its accounting policy regarding foreign currency translations. The change in accounting policy has been applied prospectively.
Under the new policy, transactions in foreign currencies are translated to US$ at the foreign exchange rates ruling at the date of the transaction. Details of the new accounting policy adopted by the Corporation are included in Note 4(a). Previously, transactions in foreign currencies are translated to US$ at the foreign exchange rates ruling on 1 January of the respective year.
(b) Investments
From 1 January 2010, the Corporation has changed its accounting policy regarding investments. The change in accounting policy has been applied prospectively.
Details of the new accounting policy adopted by the Corporation are included in Note 4(l). Previously, Investments were stated at the lower of total aggregate cost or total aggregate market value and the resulting depreciation in value of investments was reflected in the profit and loss accounts.
ANNUAL REPORT 2010
23
Notes to the financial statements For the years ended 31st December 2010 and 2009
The financial impact of the change on the financial statements for the year ended 31 December 2010 is summarised as follows: In U.S. Dollars
BALANCE SHEET
Increase in unrealised gain on revaluation of investments
62,479
Increase in equity
62,479
STATEMENT OF INCOME
Decrease in gain on revaluation of investments
62,479
Decrease in profit for the year
62,479
4. SIGNIFICANT ACCOUNTING POLICIES
(a) Foreign currency transactions
The Corporation uses United Nations Organization (“UNO�) announced foreign exchange rates for currency translation. Transactions in foreign currencies are translated to US$ at the foreign exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to US$ at the foreign exchange rates ruling at that date. Foreign exchange differences arising on translation are recognized in the Revenue Accounts and the Profit and Loss Account.
(b) Cash
Cash in the statements of cash flows comprise cash balances at bank and on hand.
(c) Reserves for unexpired risks
(d) Reserves for outstanding claims
Reserves for unexpired risks are provided at 40% of premiums net of retrocessions for all type of insurances.
Reserves for outstanding claims are provided based on the outstanding loss advices and other information received from ceding companies. Where no data is available, the reserves are provided based on reasonable estimation. Further, an additional 5% is provided for IBNR.
(e) Amounts due from insurers or reinsurers and other receivables
Amounts due from insurers or reinsurers and other receivables are stated at net realisable value.
The allowance for doubtful debts is provided on the basis of the net balances due to the Corporation which are due for over one year from companies with poor records of settlement of accounts.
24
ASIAN REINSURANCE CORPORATION
Notes to the financial statements For the years ended 31st December 2010 and 2009 (f) Income tax
Income tax is provided in the Profit and Loss Account in accordance with The Host Country Agreement with the Government of the Kingdom of Thailand under the Asian Reinsurance Corporation Act B.E. 2534 (“the Host Country Agreement”) which provides as follows:
•
The Corporation’s headquarters premises, funds, insurance premium, income derived from outside of Thailand and dividends to shareholders of the Corporation shall be exempted from all taxation and any obligation for the payments, withholding or collection of any tax or duty. The Corporation shall not be exempted from taxes or charges which are no more than payments for public utility services.
•
In the determination of profits of the Corporation to be taxed in Thailand, only income derived in Thailand, except income from underwriting, shall be included as the income of the Corporation. The expenses of the Corporation’s headquarter shall be calculated on the basis of the proportions of gross receipts except receipts from underwriting derived from Thailand.
(g) Provisions
Provisions are recognised when it is probable that an outflow of economic benefits will be required to settle a present legal or constructive obligation as a result of past events and a reliable estimate can be made of the amount of the obligation.
(h) Offsetting
Financial assets and liabilities are offset and the net amount is reported in the balance sheet when the Corporation has a legal, enforceable right to set off the recognized amounts and the transactions are intended to be settled on a net basis.
(j) Revenues
Reinsurance premium
Inward reinsurance transactions with ceding insurance companies are recorded in the accounts upon receipt of statement of accounts from these companies.
Interest and dividend income
Interest income is recognised in the Profit and Loss Account as it accrues. Dividend income is recognised in the Profit and Loss Account on the date the Corporation’s right to receive payments is established.
(k) Expenses
Commission
Commission is expensed when it occurs.
Expenses of management
Expenses of management are allocated to each type of the Revenue Accounts in proportion to the net premium income.
ANNUAL REPORT 2010
25
Notes to the financial statements For the years ended 31st December 2010 and 2009 (l) Investments
Classification
The classification of investments depends on the purpose for which the investments were acquired. The Corporation determines the classification of the financial assets at initial recognition. Investments in financial assets are classified as follows:
• At fair value through profit or loss
• Held-to-maturity
• Available-for-sale
Measurement
Investments held for trading are classified as current assets and are stated at fair value, with any resultant gain or loss recognized in the Profit and Loss Account.
Investments that the Corporation has a positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are stated at amortised cost. The difference between the acquisition cost and redemption value of such debt securities is amortised using the effective interest rate method over the period to maturity.
Investments other than those held for trading or intended to be held to maturity, are classified as being availablefor-sale and are stated at fair value, with any resultant gain or loss being recognized directly in a separate component of equity. The exceptions are impairment losses and foreign exchange gains and losses, which are recognized in the statement of income. When these investments are derecognized, the cumulative gain or loss previously recognized directly in a separate component of equity is recognized in the Profit and Loss Account. Where these investments are interest-bearing, interest calculated using the effective interest method is recognized in the Profit and Loss Account.
The fair value of traded investments in active markets is based on quoted market values at the balance sheet date. Fair value of other investments are estimated at realizable values. Where it is not possible to estimate fair value, the investment is carried at cost less impairment, if any.
Disposal of investments
On disposal of an investment, the difference between net disposal proceeds and the carrying amount together with the associated cumulative gain or loss that was reported in a separate component of equity is recognized in the Profit and Loss Account.
If the Corporation disposes of part of its holding of a particular investment, the deemed cost of the part sold is determined using the weighted average method applied to the carrying value of the total holding of the investment.
26
ASIAN REINSURANCE CORPORATION
Notes to the financial statements For the years ended 31st December 2010 and 2009
Impairment
The carrying amounts of the investments are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, investments’ recoverable amounts are estimated.
An impairment loss is recognised if the carrying amount of an investment exceeds its recoverable amount. The impairment loss is recognised in the Profit and Loss Account unless it reverses a previous revaluation credited to equity, in which case it is charged to equity.
The recoverable amount of held-to-maturity investments carried at amortised cost is calculated as the present value of the estimated future cash flows discounted at the original effective interest rate. The recoverable amount of available-for-sale investments is calculated by reference to the fair value.
An impairment loss in respect of an investment is reversed if the subsequent increase in recoverable amount can be related objectively to an event occurring after the impairment loss was recognised.
(m) Office condominium, furniture, fixtures, vehicles and office equipment
Office condominium, furniture, fixtures, vehicles and office equipment are stated at cost less accumulated depreciation.
Gain or loss on disposal of equipment is recognized in the statement of income. Expenditures on addition, renewal and improvements, which result in a substantial increase in an asset’s current replacement value, are capitalized. Repair and maintenance costs are recognized as an expense when incurred.
Depreciation is charged to the Profit and Loss Account on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives are as follows:
Office condominium
20
Years
Furniture and fixtures
5
Years
Office equipment
5
Years
Vehicles
5
Years
No depreciation is provided on assets under construction.
ANNUAL REPORT 2010
27
Notes to the financial statements For the years ended 31st December 2010 and 2009 (n) Employee benefits
Post retirement employee benefits
Employees are allowed for optional early retirement after completion of 20 years of continuous service with the Corporation and are entitled to termination benefits.
The Corporation operates defined contribution plan for the post retirement benefits of its employee. The Corporation pays contributions to provident funds, and such amounts are charged to personnel expenses under expenses of management. The Corporation has no further payment obligations once the contributions have been paid. Each of the employees under the plan is entitled to the entire contribution plus earnings thereon regardless of the length of service with the Corporation.
The Corporation has established contributory provident funds for its employees, separately for each of its international and local employees. Contributions are made monthly by the employees at rates 5% of their basic salaries and by the Corporation at rates ranging from 6% to 10% of the employees’ basic salaries depending on years of service.
The provident funds for the international employees are managed by the Corporation through a fixed deposit bank account which is not included in the balance sheet. The provident funds for local employees are registered with the Ministry of Finance as juristic entities and are managed by licensed Fund Manager “TISCO Asset Management Co., Ltd.�, and therefore they are not included in the balance sheet.
Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.
(o) Amounts due to insurers or reinsurers and other payables
28
Amounts due to insurers or reinsurers and other payables are stated at cost.
ASIAN REINSURANCE CORPORATION
Notes to the financial statements For the years ended 31st December 2010 and 2009 5. SEGMENT INFORMATION
Following is the detail for gross premium written by territory. In U.S. Dollars 2010
2009
MEMBER – COUNTRIES
Thailand
24,175,590
24,054,344
India
8,347,266
6,785,838
South Korea
7,896,314
6,214,583
Philippines
5,065,891
5,213,486
Others
2,469,287
2,741,885
47,954,348
45,010,136
6,681,635
5,553,096
-
52
2,900,247
2,416,314
57,536,230
52,979,598
(24,040,754)
(21,934,498)
33,495,476
31,045,100
Countries in the UN/ESCAP region Developed countries Other countries Total Less premium ceded Premium - net of reinsurance
6. INCOME FROM INVESTMENTS AND BANK ACCOUNTS In U.S. Dollars 2010
2009
1,775,204
2,007,187
73,602
57,207
115,517
18,047
50,363
52,811
2,014,686
2,135,252
250,325
5,022
2,265,011
2,140,274
Interest and dividend
Interest on bank deposits and savings accounts
Interest on reserves – net
Interest on US$ bonds
Dividends
Realised gain on sale of investments Total
ANNUAL REPORT 2010
29
Notes to the financial statements For the years ended 31st December 2010 and 2009 7. MISCELLANEOUS INCOME In U.S. Dollars 2010 Rental income
2009 -
20,820
274
7
Other
7
66
Total
281
20,893
Gain on disposal of fixed assets
8
EMPLOYEE BENEFIT EXPENSES
During the year the Corporation contributed US$ 51,388 (2009: US$ 30,473) to the provident funds for its international and local employees as defined in Note 4(n). The contribution is included in expenses of management.
The employees who have completed 20 years of service with the Corporation are entitled to separate termination benefits at the time of retirement. A provision is made for the payment of such benefits on the basis of annual basic salary for each year of service after completion of 20 years. The balance of the provision is included in provision for expenses incurred but not paid. Movement in the provision during the year is as follows: In U.S. Dollars 2010
Balance as at 1 January
2009
157,746
143,377
Additions
34,569
14,369
Payments
(47,307)
-
Balance as at 31 December
145,008
157,746
8
7
Eligible employees
30
ASIAN REINSURANCE CORPORATION
Notes to the financial statements For the years ended 31st December 2010 and 2009 9. INVESTMENTS In U.S. Dollars 2010
2009
FOREIGN INVESTMENTS
Bonds
3,647,230
883,840
Mutual funds and notes
1,085,667
1,517,562
Total foreign investments
4,732,897
2,401,402
THAILAND INVESTMENTS
Mutual funds
16,573
164,769
Stocks
52,690
134,851
Total Thailand investments
69,263
299,620
4,802,160
2,701,022
(209,344)
(237,778)
62,479
-
4,655,295
2,463,244
Total investments at cost Revaluation loss on investments Unrealised gain on revaluation of investments Total investments at fair value
As described in Note 3, from 1 January 2010 the Corporation has changed its accounting policy for investments and classified all investments as available for sale. The unrealised gain on revaluation of investments comprises the cumulative net change in the fair value of available-for-sale investments until the investments are derecognised or are impaired.
The revaluation loss on investments for 2010 represents the carry forward losses from 31 December 2009 for investments still held at 31 December 2010.
ANNUAL REPORT 2010
31
Notes to the financial statements For the years ended 31st December 2010 and 2009 10. OFFICE CONDOMINIUM In U.S. Dollars 2010
2009
1,231,036
1,231,036
Additions
-
-
Disposals
-
-
1,231,036
1,231,036
1,015,605
954,053
61,552
61,552
-
-
1,077,157
1,015,605
153,879
215,431
COST At 1 January
As at 31 December
ACCUMULATED DEPRECIATION At 1 January Depreciation charge for the year Disposals As at 31 December
Net book value at 31 December
11. AMOUNTS DUE FROM INSURERS OR REINSURERS In U.S. Dollars 2010 Amounts due from insurers or reinsurers Less allowance for doubtful debts Net
32
ASIAN REINSURANCE CORPORATION
2009
10,706,104
5,015,394
(397,367)
(373,535)
10,308,737
4,641,859
Notes to the financial statements For the years ended 31st December 2010 and 2009 12. SHORT-TERM DEPOSITS AND CURRENT ACCOUNTS In U.S. Dollars 2010
2009
Analysed by country United Kingdom (Member - Country Bank)
23,943,753
19,877,204
India
14,550,000
20,650,000
Sri Lanka
21,750,088
12,806,224
Philippines
1,042,180
10,113,748
Iran
4,730,618
5,952,381
Thailand
5,886,257
3,963,600
71,902,896
73,363,157
60,541,441
62,438,965
Euro
5,069,036
6,230,190
Thai Baht
5,886,257
3,963,600
29,538
57,907
373,801
669,971
2,823
2,524
71,902,896
73,363,157
Total
Analysed by currency US Dollars
GB Pound Peso (Philippines) Yen Total
ANNUAL REPORT 2010
33
Notes to the financial statements For the years ended 31st December 2010 and 2009 13. FURNITURE, FIXTURES, VEHICLES AND OFFICE EQUIPMENT In U.S. Dollars 2010
2009
COST At 1 January
456,438
413,035
Additions
121,608
50,035
Disposals
111,247
6,632
As at 31 December
466,799
456,438
369,098
351,001
42,420
24,716
Disposals
111,221
6,619
As at 31 December
300,297
369,098
Net book value at 31 December
166,502
87,340
ACCUMULATED DEPRECIATION At 1 January Depreciation charge for the year
The gross amount of the Corporation’s fully depreciated furniture, fixtures, vehicles and office equipment that were still in use as at 31 December 2010 amounted to US$ 221,027 (2009: US$ 291,641).
14. ADVANCES, DEPOSITS AND PREPAID EXPENSES
34
This includes advance payments of US$ 268,688 made by the Corporation during the year ended 31 December 2010 for the implementation of new software. The amount will be capitalized on the date the software will be ready for its intended use.
ASIAN REINSURANCE CORPORATION
Notes to the financial statements For the years ended 31st December 2010 and 2009 15. SHARE CAPITAL
Par value per share (in US$)
2009 Number Amount (shares/US$) (shares/US$)
2010 Number Amount (shares/US$) (shares/US$)
AUTHORISED At 1 January
1,000
100,000
100,000,000
100,000
100,000,000
At 31 December
1,000
100,000
100,000,000
100,000
100,000,000
30,239
30,239,000
29,739
29,739,000
SUBSCRIBED AND PAID-UP At 1 January Additional paid-in
1,000
-
-
500
500,000
At 31 December
1,000
30,239
30,239,000
30,239
30,239,000
16. SHARE PREMIUM In U.S. Dollars 2010 Balance at 1 January Additional paid-in Balance at 31 December
2009
15,610,000
15,010,000
-
600,000
15,610,000
15,610,000
Share premium is not available for dividend distribution.
17 RESERVES
Statutory reserve
The statutory reserve is made in accordance with the provisions of the Agreement that requires to transfer one tenth of the annual profits to the statutory reserve until such reserve equals to 100% of the share capital of the Corporation. The Council of Members may, however, decide to continue such transfer beyond this limit.
Contingency reserve
At the 13th meeting of the Council of Members held in 1990 it was decided to allocate US$ 500,000 from Profit and Loss Appropriation Account to Contingency Reserve to cover contingent liabilities which may arise.
ANNUAL REPORT 2010
35
Notes to the financial statements For the years ended 31st December 2010 and 2009 18. DIVIDEND
At the fourth Shareholders Assembly meeting held on 14 May 2010, the Shareholders Assembly approved the payment of cash dividend of 2.75% of paid up share capital as at 31 December 2009. The dividend was paid to shareholders during 2010.
At the third Shareholders Assembly meeting held on 24 April 2009, the Shareholders Assembly approved the payment of cash dividend of 0.55% of paid up share capital as at 31 December 2008. The dividend was paid to shareholders during 2009.
Dividend for current year, if any, is decided and approved by Shareholders Assembly, and accounted for in equity as an appropriation of profits in the next year.
19. INCOME TAX DEDUCTIONS
36
The income tax deductions in the Profit and Loss Account include tax deducted on interest and dividends income derived in Thailand. As defined in Note 4(f), under the Host Country Agreement the Corporation is exempt from Thailand tax on all income except for the income, other than from underwriting activities, derived in Thailand.
ASIAN REINSURANCE CORPORATION
Certificate by management board ACCOUNTS FOR THE PERIOD ENDED 31ST
DECEMBER 2010
We certify that :
1. Investments have been shown in the Balance Sheet as per the significant Accounting policies stated in the annual Report
2. Ample provision has been made for all liabilities.
3. Treaty and facultative returns received upto 31 Dececmber 2010 have been incorporated into these accounts.
4. All currencies have been converted in to US Dollar at the rate of exchange ruling on the date of transactions and at the rates of exchange ruling on 31 December 2010 for the Balance Sheet.
5. The Balance Sheet, Revenue Accounts, Profit and Loss Account and Profit and Loss Appropriation Account are to the best of our knowledge and belief correct and are drawn up so as to give a true and fair view of the state of affairs of the Corporation as at 31 December 2010 and of the results for the year ended on that date.
(Dr. Abdolnaser Hemmati) Chairman
(Ms. G.D.C. Ekanayake) Vice - Chairman
(Mr. Yogesh Lohiya) Member
(Dr. Javad Farshbaf Maheryan) Member
(S.A. Kumar) President & CEO
DATE Signed : 22.04.2011
ANNUAL REPORT 2010
37
SENIOR MANAGEMENT
S.A. Kumar Chartered Insurer M.A.., M.B.A., FIII., FCII. kumar@asianrecorp.com
President & Chief Executive Officer
Kumudini S.S. Dassenaike
K.Thanamohan
Chartered Insurer Deputy Chief B.A. (Hons) FCII. Executive Officer kumudini@asianrecorp.com
B. Sc, ACA, FIII, PGDM Vice-President Finance thanamohan@asianrecorp.com & I.T.
Md. Alamgir Kabir
Kencho Yeshey
M. Com, ABIA, Dip CII kabir@asianrecorp.com
Dip. CE, AII, Dip CII fac@asianrecorp.com
Vice-President – Treaty
Parkpoome Nivatvongs
Sarinporn Namsirikul
Deputy Vice-President Chartered Insurer – Treaty MBA., ACII parkpoome@asianrecorp.com
MBA sarinporn@asianrecorp.com
Chintana Pongboriboon
Chailit Viriyaakavuti
B.A.. M.S. (Acct.) Administrative Officer chintana@asianrecorp.com – General Accounts
B.A.. (Acct.) ATII. chailit@asianrecorp.com
Nittaya Agesitiphong B.A.. (Mgt.) nittaya@asianrecorp.com
38
Administrative Officer – EDP
ASIAN REINSURANCE CORPORATION
Deputy Vice-President – Facultative
Deputy Vice-President – Investments
Administrative Officer – R/I Accounts
ANNUAL REPORT 2010
39