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.�
ANNUAL REPORT 2011
1
PAGE
• Council of Members • Associate Members • Chairman’s statement • Report of the Management Board • Certificate by Auditors • Statement of Financial positions • Profit and Loss Accounts • Profit and Loss Appropriation Accounts • Statement of changes in shareholders’ equity • Fire Insurance Revenue Accounts • Marine Insurance Revenue Accounts • Miscellaneous Insurance Revenue Accounts • Statement of Cash Flows • Notes to the Financial Statements • Certificate by Management Board • Senior Management
2
ASIAN REINSURANCE CORPORATION
3 4 5 7 13 14 16 17 18 19 20 21 22 23 37 38
COUNCIL OF MEMBERS
Mr. Fahad Daud “Momand” Afghanistan Mr. Md. Rezaul Karim Bangladesh
President Afghan National Insurance Co. Managing Director Sadharan Bima Corporation
Mr. Namgyal Lhendup Bhutan
CEO Royal Insurance Corp. of Bhutan
Mr. Zhang Hong
Vice President China Reinsurance (Group) Corporation
China Mr. A.K. Roy India Dr. Abdolnaser Hemmati Iran Mr. Jong Won Park Korea Atty. Emmanuel F. Dooc
Chairman -cum- Managing Director General Insurance Corp. of India Managing Director & CEO Sina Bank Company
CEO Korean Reinsurance Company Insurance Commissioner
Philippines Ms. G.D.C. Ekanayake Sri Lanka Mr. Pravej Ongartsittigul Thailand
Director General Department of National Budget Ministry of Finance and Planning Secretary General Office of Insurance Commission
ANNUAL REPORT 2011
3
Associate Members
4
ASIAN REINSURANCE CORPORATION
Chairman’s Statement
Dr. Abdolnaser Hemmati CHAIRMAN I am happy to welcome the distinguished members from member-states and representatives of Associate members to the sixth Shareholders’ Assembly of the Asian Reinsurance Corporation. The year 2011 was the most disappointing and difficult one for reinsurers. It will go down as the worst year in terms of natural catastrophe losses. The financial statements, the Auditors’ report and the Management Board Report, which you already have in hand reflect what the industry and your Corporation has gone through. The flood that ravaged Thailand in the latter part of 2011 from runaway water from the Northern and Central Thailand inundated industrial areas, residential areas and farmland. It affected 61 out of 77 provinces causing loss to hundreds of insured properties. The economic loss of this unprecedented flood is estimated at US$45 bn. while the insured loss might be nearly US$18bn. Truly enough this loss is characterized as the largest freshwater loss ever suffered by the insurance industry globally. This loss has rung a warning bell to the reinsurance industry. The methodologies so far adopted for risk assessment and accumulation control were far from adequate. The industry has to rethink ways to assess and mitigate hidden catastrophes in their books. Beginnings were made in this direction through underwriting measures during the renewals following floods.
Having suffered the loss it is our primary responsibility to respond to the loss efficiently and effectively so that the insurance industry is back on track. We are also committed to support the Thailand insurance market in this difficult period to the maximum extent. 2011 would have been yet another year of success for the Corporation but for this unfortunate event. With focus on underwriting profits, many unprofitable contracts were weeded out and rigorous efforts were made to build a quality book of business. This led to marginal fall in gross written premium by 2.1% to US$ 56.34 mn. Whilst growth is of paramount importance, the focus will continue to be on sustainable growth. The potential for such growth in the region has increased due to economic growth and increasing demand for insurance. Consequent on Thai floods, loss ratio for the year skyrocketed to 162%. We could limit the loss ratio at this level due to our policy of reducing retention through various retrocession arrangements. Had we followed a policy of increasing retention for short-term profits, it would have escalated the loss ratio further. By the time of account closing losses were still under development and further deterioration would be certain considering the magnitude of loss. Without floods the loss ratio would have been an exceptionally good at 49.4%. We had succeeded in maintaining acquisition cost at 33.4%. The Management expenses increased to 4.9% from 4.5% mainly on account of appreciation of Bahts. Thus we posted a combined ratio of 200.3% with floods as against an impressive 86.2% without floods.
ANNUAL REPORT 2011
5
Chairman’s Statement With our decision to diversify the highly liquid portfolio of assets, the percentage of deposits in various member countries have been reduced from 93.8% in 2010 to 82.7% whilst bonds and equity portfolio have been increased from 6.2% to 17.3%. The investment income for the year increased by 17% to 2.65 mn. with a mean yield of 3.31%. Going forward, investment income will be under stress due to urgent need to payout large amount of flood claims. Management of cash flow through retrocession recoveries and prompt disbursement of claims are the critical concerns of the Corporation.
Purnariksha of Thailand laid down their offices. I commend their contributions to the Corporation during their tenure. I also welcome the new Council Members from Afghanistan , India and Thailand, Mr. Fahad Daud “Momand”, Mr. A .K. Roy, and Mr. Pravej Ongartsittigul respectively . The number of Associate-members of the Corporation increased to ten during the year with the admission of two new members. Associate members will be a source of great support for the Corporation going forward. I convey my deepfelt gratitude to Associate members for their interest in building this institution.
The net operating loss for the year, I regret to report, was US$ 30.35 mn compared to a profit of US$ 2.78 mn. in 2010. Absent the mega floods, operating profits would have been US$ 6.95 mn. After accounting for net loss, the Shareholders’ equity of the Corporation declined from US$ 54.72 mn to US$ 23.48 mn. In view of further loss development it has been decided that there is urgent need to strengthen the Corporation by infusion of fresh capital. It is our considered view that the unique structure of the Corporation as an intergovernmental regional institution should be maintained giving ample room for the private sector to play an active role in the reinsurance sector. It is our fervent wish that even after the infusion of new capital structurally we should continue to maintain the public-private-participation model. I, therefore, call upon all member-countries and Associate members to join force to strengthen the capital of the Corporation so that it could continue to support the regional insurance industry. Being an institution set up with the aim of regional cooperation, indeed it is part of our ethos that calamity in one member-country is a calamity for all of us. I take this opportunity to convey our heartfelt thanks to the Royal Thai Government and the Officers of the United Nations and ESCAP for their continued support. We are also grateful to the Executives of the Office of Insurance Commission for their active interest in strengthening and promoting the Corporation. Three of our Council Members Engr. Ahmad Shah “Alizai” of Afghanistan, Mr. Yogesh Lohiya of India, and Mrs. Chantra
6
ASIAN REINSURANCE CORPORATION
My special thanks to the distinguished members of the Council for their valuable contributions. I would also like to thank our valued clients and business partners for the trust reposed in us. Our employees are our foundation. Their dedicated service is the only way forward for the success of the Corporation. I appreciate and greatly value their contributions.
Dr. Abdolnaser Hemmati CHAIRMAN
Report of the Management Board FOR THE YEAR ENDED 31ST DECEMBER 2011 The report for the year 2011 and the 32nd Statement of accounts for the year ended 31 December 2011 are presented below.
Highlights The upward trajectory in business growth of past several years and improvement in operating results (but for the financial crisis year 2008) was shattered by the unprecedented floods in Thailand during August to December 2011. What would otherwise have been another year of achievements turned out to be dismal due to the devastating floods. The outstanding loss reserve from the flood is still developing and it will take several months more for the loss numbers to be definitive, considering the enormity of losses and issues involved in assessment.
This catastrophe loss will be a game-changer as far as the regional reinsurance industry is concerned. The way proportional treaty business was structured and transacted would change as the market comes to grip with the losses.
The performance of the Corporation for 2011 in comparison with 2010 were as under:
• Gross written premium marginally decreased by 2.1% from US$ 57.54 mn in 2010 to US$ 56.34 mn.
• Net written premium decreased from US$ 33.50 mn to US$ 32.26 mn .
• Earned premium increased from US$ 32.52 mn to US$ 32.76 mn .
• Loss ratio escalated to 162% on account of floods (which otherwise would have been 49.4%)
as against 60.3% of 2010.
• Net operating loss of US$ 30.35 mn compared to 2010 profit of US$ 2.78 mn. Discounting floods,
operating profit would have been US$6.95 mn.
• Combined ratio of 200.3% as against 98.2% of 2010. Without floods, the ratio would have been 86.2.%
• Investment income increased to US$ 2.65 mn. from US$ 2.27 mn of 2010.
• Shareholders’ funds fell to US$ 23.48 mn from US$ 54.72 mn of 2010 due to the net loss .
• Total assets increased to US$ 123.35 mn from US$ 101.69 mn of 2010.
ANNUAL REPORT 2011
7
Report of the Management Board FOR THE YEAR ENDED 31ST DECEMBER 2011 Operations Gross Written Premium Class wise analysis of Gross written premium is as follows:
Class
2010
Portfolio mix 2010
2011
Portfolio mix 2011
In US$ mn Growth in 2011
Fire Marine Motor Engineering Miscellaneous Total • The fall in fire premium was on account of decline in treaty premium from India, Korea and the Philippines and facultative premium from the U.A.E. Pruning of portfolios was done with a view to improve the bottom line. • The Marine portfolio remained stable .
• The significant growth in Motor portfolio was due to increase in quota share premium from Thailand.
• Engineering and Miscellaneous classes registered decline mainly due, again, to fall in premium from India, Korea, and the Philippines.
The facultative portfolio recorded an income of US$ 4.25 mn in 2011 against 6.64 mn (2010) and contributed 7.5% to the overall Gross written premium income. Non-proportional premium accounted for 7.2% of the gross written treaty premium.
One of the fallouts of flood loss is exclusion of nat cat perils in proportional treaties in Thailand and imposition of per event limit in treaties elsewhere. This trend could be seen across the region. There has also been sustained efforts to restrict deductions to reasonable levels with a view to enable reinsurers to recover part of the loss suffered.
Source of premium income:
2010 Host country - Thailand Other member countries Countries in the ESCAP region Other countries Total
8
ASIAN REINSURANCE CORPORATION
% of total
2011
% of total
In US$ mn Growth in 2011
Report of the Management Board FOR THE YEAR ENDED 31ST DECEMBER 2011
• Due to our focus on underwriting profits, contracts which produced recurring adverse results were weeded out. • India, and Korea contributed 12.9% each to the premium block of member-countries whilst Philippines contributed 7.5%. Premium fell from these territories due to reduction of line or cancellation of unprofitable contracts. Growth momentum was maintained in other territories. • Indonesia, and Singapore contributed 34.8% & 20.7% respectively to the premium from the ESCAP region where the growth rate was 16.9%. • ‘Other countries’ consists mainly of Middle Eastern countries from where we procure facultative business, and African countries from where we write mainly non-proportional contracts. Results of fac business from the Middle East was adverse and as such we have curtailed our acceptances .
Source of premium 2011
Gross and net premium (US$ mn)
1.6% 13.9%
70.00 Host country - Thailand 51.3%
Other member countries Countries in the ESCAP region
60.00 52.98
50.00
20.00
56.34
45.72
40.00 30.00
57.54
32.65
33.50
32.26
31.05 26.78 19.16
10.00 Other countries
2007
33.2%
2008
Gross premium
2009
2010
2011
Retained premium
Net retained and earned premium Net retained premium declined from 58.2% in 2010 to 57.3% due to additional cost incurred towards excess of loss consequent on flood loss. There has been a 0.7% increase in earned premium due to reserve release.
Acquisition costs We have maintained the ratio of commission and charges to net premium at 33.4% for the last 3 consecutive years. Considering the present market trend the cost will get reduced going forward.
Management expenses The Management expenses increased from 4.5% to 4.9% mainly due to appreciation of the Thai Baht.
Incurred losses The net earned loss ratio deteriorated to 162% from 60.3% of last year. The large scale floods which was one of its kind as far as the history of insured losses in Thailand is concerned, took a heavy toll on us. Without Thai floods our loss ratio would have been only 49.4%.
ANNUAL REPORT 2011
9
Report of the Management Board FOR THE YEAR ENDED 31ST DECEMBER 2011 Combined ratio The combined ratio increased to 200.3% from 98.2% of 2010. Excluding floods, our combined ratio showed a marked improvement to 86.2% The comparative figures for the net account by class of business were as follows:
2011
2010
In US$ mn CHANGE
Fire Gross premium Net premium Claims incurred to earned premium Commission & other charges Marine Gross premium Net premium Claims incurred to earned premium Commission & other charges Miscellaneous Gross premium Net premium Claims incurred to earned premium Commission & other charges Investment Income By following a policy of diversification of investments, we could achieve a growth in investment income of 16.7% from US$ 2.27 mn in 2010 to US$ 2.65 mn in 2011. By the end of 2011, invesments in bonds, stocks and mutual funds increased from 6.2% to 17.3% of investable funds. The balance was placed with banks of member countries. The yield on investment increased from 2.9% to 3.3%.
Exchange gain Due to the weakening of the dollar, an exchange loss of US$ 0.31mn was recorded as against a net gain of US$ 0.35 mn booked in 2010.
10
ASIAN REINSURANCE CORPORATION
Report of the Management Board FOR THE YEAR ENDED 31ST DECEMBER 2011 Technical reserves The outstanding claims provision on account of Thailand floods increased the technical reserves drastically to US$ 89.10 mn as against US$ 34.86 mn as at end 2010. This amounted to 276.2% of the net written premium for 2011.
Underwriting Results Fire (32,794.6) Marine 930.3 Miscellaneous 781.5 Expenses of Management Underwriting profit / (loss) Investment and other income Net profit before tax and other charges (307.8) Exchange gain (23.3) Income tax 14.6 Provision for doubtful debts Net Total operating profit / (loss)
In US$ ‘000 (31,082.8) 1,592.2 (32,675.0) 2,646.4 (30,028.6)
(316.5) (30,345.1)
The net operating loss was mitigated slightly due to our investment & other income of US$ 2.65 mn. After deducting expenses, we posted an operational loss of US$ 30.35 mn.
Assets grew by 21.3% in 2011 and stood at US$ 123.35 mn as at 31st December 2011. The shareholders funds which stood at US$ 54.7 mn at end 2010 dropped to US $ 23.48 mn at end 2011. We are pursuing various strategies to strengthen the Corporation by raising additional capital .
Auditors The Council of Members appointed BDO Limited as Auditors for 2011, both for annual and quarterly audits.
ANNUAL REPORT 2011
11
Report of the Management Board FOR THE YEAR ENDED 31ST DECEMBER 2011
Membership With the admission of two new Associate members, membership of the Corporation as at end 2011 stands at 20 - ten Regular members and ten Associate members. Ceylinco Insurance Company Plc., Sri Lanka, the largest private sector insurer, and the New India Assurance Co.,Ltd., the largest public sector insurer in India joined the Corporation as Associate-members in 2011.
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 activities Much appreciation and accolades have been lavished on our annual seminar on ‘Principles and Practice of Reinsurance” held in September 2011, attended by 24 participants from 10 countries .
Our dedicated staff remains our strength. They work tirelessly to deliver our promise of service and their contributions are praiseworthy.
12
ASIAN REINSURANCE CORPORATION
Tel: +662 261 1251-4 Fax: +662 261 1255 www.bdo.co.th
BDO Limited 22nd Floor, CTI Tower 191/41 Ratchadapisek Road, Klongtoey, Bangkok 10110 Thailand
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS To The Shareholders’ Assembly of Asian Reinsurance Corporation 1. I have audited the accompanying statement of financial position of the Asian Reinsurance Corporation as at 31st December, 2011 and the annexed fire, marine and miscellaneous insurance revenue accounts, profit and loss account, profit and loss appropriation account, statements of change in shareholders’ equity and cash flow for the year then ended. My examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as I considered necessary in the circumstances. The financial statements of Asian Reinsurance Corporation for the year ended 31st December, 2010, which are presented here in for comparative purpose, were examined by another auditor whose report dated 22nd April, 2011, expressed an unqualified audit opinion. 2. As part of my examination, I have verified the cash and bank balances and investments by actual inspections or by the production of certificates or other documentary evidences. I have obtained all the information and exptanations which to the best of my knowledge and belief, were 3. (a) necessary for the purpose of my audit ; In my opinion, proper books of account have been kept by the Corporation so far as it appears from my (b) examination of the books of account and returns; (c) The Corporation’ s statements of financial position, revenue accounts, profit and loss accounts, profit and loss appropriation accounts and statements of change in shareholders’ equity and cash flow dealt with by this report are in agreement with the books of account and returns; (d) To the best of my information and according to the explanations given to me, in my opinion the said accounts give a true and fair view; (i) in the case of the statement of financial position, of the state of affair of the Corporation as at 31st December 2011. (ii) in the case of profit and loss account, of the operating result of the Corporation for the year then ended. (iii) in the case of statements of change in shareholders’ equity and cash flow, of the change in shareholders’ equity and the cash flow of the Corporation for the year then ended. 4. The operation of the Corporation during the year under report, so far as it appears from my examination of the books of account and returns, was in accordance with the provisions of the Agreement establishing the Corporation and guidelines issued by the Council of Members. 5. Without qualifying my opinion, I draw attention to the Note 1.2 to the financial statements, even though the Corporation’s Management set up loss reserve based on the best estimate, taking into account the avaitable facts and considered appropriate assumptions there are inherent uncertainties in the completeness and accuracy of the information and assumptions used by the Management. While preparing loss reserve as at the time of preparation of financial statements, claims were still under development. There is, therefore, likelihood of actual loss reserve differing from the loss estimates with the passage of time and availability of reliable information from cedants. However, the Corporation Management might consider to restate the financial statements to reflect the receipt of reliable loss information after the reporting date.
Ms. Thittraporn Klinklao Certified Public Accountant (Thailand) No. 3726 BDO Limited BANGKOK : 3rd April, 2012 BDO Limited, a limited liability company incorporated in Thaitand, is a member of BDO International Limited, a UK company limited by guarantee , and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.
ANNUAL REPORT 2011
13
Statement of Financial Positions As at 31st December 2011 and 2010
In U.S. Dollars Note
2011
2010
100,000,000.00
100,000,000.00
LIABILITIES AND SHAREHOLDERS’ EQUITY SHAREHOLDERS’ EQUITY
Authorized share capital of 100,000 shares
at US$ 1,000 par value
Subscribed and paid up share capital
12
30,839,000.00
30,239,000.00
Share premium account
13
16,330,000.00
15,610,000.00
Statutory reserve
14
2,325,852.35
2,325,852.35
Contingency reserve
14
500,000.00
500,000.00
Fair value reserve
(486,390.46)
62,478.74
Profit and (loss) appropriation account
(26,027,967.58)
5,980,285.87
23,480,494.31
54,717,616.96
LIABILITIES
Reserves for unexpired risks
3.3
Fire
4,875,476.04
5,366,035.27
Marine
2,326,144.21
2,248,203.08
Miscellaneous
5,703,065.21
5,783,952.32
12,904,685.46
13,398,190.67
Reserves for outstanding claims
3.4
Fire
61,295,274.31
8,925,130.57
Marine
4,135,893.68
3,575,291.73
Miscellaneous
10,763,376.65
8,957,021.35
76,194,544.64
21,457,443.65
169,566.21
161,464.45
Provision for expenses incurred but not paid
Reserve held on reinsurance retroceded
4,904,768.74
4,843,322.81
Amounts due to other insurance or reinsurance companies
5,676,068.96
7,092,590.27
Sundry creditors
23,388.56
16,965.76
123,353,516.88
101,687,594.57
6
Total (The accompanying notes are an integral part of the financial statements)
14
ASIAN REINSURANCE CORPORATION
Statement of Financial Positions As at 31st December 2011 and 2010 In U.S. Dollars Note
2011
2010
ASSETS
Investments - net
3.11, 7
13,634,918.80
4,655,294.51
Office condominium - net
3.12, 8
92,327.66
153,879.50
Furniture, fixtures, vehicles and office equipment - net 3.12, 9
586,911.84
166,502.41
Interest and dividend accrued
868,305.10
872,426.15
Reserves held by reinsurance companies
13,652,159.24
12,505,806.53
Amounts due from insurers or reinsurers - net
10
27,206,241.50
10,308,737.42
Cash balances with banks and on hand :
(a) Short-term deposits and current accounts
11
66,707,473.43
71,902,896.32
(b) Cash on hand
3,088.01
15,658.33
(c) Saving accounts
585,541.35
813,464.74
Sundry debtors
3,572.37
3,061.70
Advances, deposits and prepaid expenses
12,977.58
289,866.96
123,353,516.88
101,687,594.57
Total
(The accompanying notes are an integral part of the financial statements)
ANNUAL REPORT 2011
15
Profit and Loss Accounts For the years ended 31st December 2011 and 2010 In U.S. Dollars Note
2011
2010
REVENUES
Income from investments and bank accounts
Less : Income tax deductions
5
2,645,749.10
2,265,011.06
3.6
(23,388.57)
(16,977.04)
2,622,360.53
2,248,034.02
-
444,575.63
643,331.86
211,515.28
77,873.90
-
684.46
281.41
(307,797.40)
354,509.49
3,036,453.35
3,258,915.83
33,396,189.89
-
Net
Profit transferred from Revenue Account
Fire insurance
Marine insurance
Miscellaneous insurance
Miscellaneous income
Gain (loss) on currency exchange
Total
EXPENSES
Loss transferred from Revenue Account
Fire insurance
Marine insurance
-
-
Miscellaneous insurance
-
452,174.49
(14,628.09)
23,831.52
(30,345,108.45)
2,782,909.82
3,036,453.35
3,258,915.83
Adjustment of provision for :
Doubtful debts
Balance being profit and (loss) 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 2011 and 2010 In U.S. Dollars Note
2011
2010
Profit and (loss) appropriation balance
at the beginning of the year
5,980,285.87
4,307,239.53
Profit and (loss) transferred from Profit and Loss Account
(30,345,108.45)
2,782,909.82
Total
(24,364,822.58)
7,090,149.35
Transfer to statutory reserve
14
-
278,290.98
Dividends
15
1,663,145.00
831,572.49
(26,027,967.58)
5,980,285.88
(24,364,822.58)
7,090,149.35
Balance being profit and (loss) appropriation
carried forward
Total
(The accompanying notes are an integral part of the financial statements)
ANNUAL REPORT 2011
17
18
ASIAN REINSURANCE CORPORATION
(The accompanying notes are an integral part of the financial statements)
30,839,000.00
-
Change in the value of investments
Balance as at 31st December, 2011
-
-
15
Operating loss for the year
Cash dividends
600,000.00
12, 13
30,239,000.00
Balance as at 1st January, 2011
Share capital increased during the year
30,239,000.00
-
Change in the value of investments
Balance as at 31st December, 2010
-
Transfer to statutory reserve
-
15
16,330,000.00
-
-
-
720,000.00
15,610,000.00
15,610,000.00
-
-
-
-
15,610,000.00
account
capital
30,239,000.00
premium
paid-up share
Operating profit for the year
Cash dividends
Balance as at 1st January, 2010
Note
Share
Subscribed and
2,325,852.35
-
-
-
-
2,325,852.35
2,325,852.35
-
278,290.98
-
-
500,000.00
-
-
-
-
500,000.00
500,000.00
-
-
-
-
500,000.00
-
-
-
-
(486,390.46)
(548,869.20)
-
-
-
62,478.74
62,478.74
62,478.74
reserve
reserve
reserve
2,047,561.37
Fair value
Contingency
Statutory
(1,663,145.00)
1,320,000.00
54,717,616.96
54,717,616.96
62,478.74
-
2,782,909.82
(831,572.49)
52,703,800.89
Total
(26,027,967.58)
-
23,480,494.31
(548,869.20)
(30,345,108.45) (30,345,108.45)
(1,663,145.00)
-
5,980,285.87
5,980,285.87
-
(278,290.98)
2,782,909.82
(831,572.49)
4,307,239.52
Account
Appropriation
Profit and Loss
In U.S. Dollars
Statement of changes in Shareholders’ equity
For the years ended 31st December 2011 and 2010
Fire Insurance Revenue Accounts For the years ended 31st December 2011 and 2010 In U.S. Dollars Note
2011
2010
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
4
5,366,035.27
5,107,777.56
12,188,690.09
13,415,088.17
33,396,189.89
-
50,950,915.25
18,522,865.73
40,803,038.95
6,836,736.67
4,621,634.37
5,226,104.64
601,527.54
602,803.55
49,238.35
46,609.97
4,875,476.04
5,366,035.27
-
444,575.63
50,950,915.25
18,522,865.73
Total
EXPENSES
Claims incurred - net of reinsurances :
Net commission
Expenses of management
Miscellaneous outgo
Balance of account at the end of the year
Reserve for unexpired risks
3.10
3.3
Profit transferred to Profit and Loss Account
Total
(The accompanying notes are an integral part of the financial statements)
ANNUAL REPORT 2011
19
Marine Insurance Revenue Accounts For the years ended 31st December 2011 and 2010 In U.S. Dollars Note
2011
2010
REVENUES
Balance of account at the beginning of the year
Reserve for unexpired risks
Premium - net of reinsurances
4
2,248,203.08
1,871,353.78
5,815,360.53
5,620,507.71
8,063,563.61
7,491,861.49
Total
EXPENSES
Claims incurred - net of reinsurances :
3,287,281.65
3,403,960.98
Net commission
1,493,174.16
1,349,600.96
Expenses of management
286,995.53
252,556.07
Miscellaneous outgo
26,636.20
26,025.12
Balance of account at the end of the year 2,326,144.21
2,248,203.08
643,331.86
211,515.28
8,063,563.61
7,491,861.49
Reserve for unexpired risks
3.10
3.3
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 2011 and 2010 In U.S. Dollars Note
2011
2010
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
4
5,783,952.32
5,438,908.73
14,257,663.03
14,459,880.81
-
452,174.49
20,041,615.35
20,350,964.03
Total
EXPENSES
Claims incurred - net of reinsurances :
8,981,195.93
9,376,503.30
Net commission
4,541,736.89
4,462,689.75
Expenses of management
703,634.02
649,751.04
Miscellaneous outgo
34,109.40
78,067.62
Balance of account at the end of the year 5,703,065.21
5,783,952.32
77,873.90
-
20,041,615.35
20,350,964.03
Reserve for unexpired risks
3.10
3.3
Profit transferred to Profit and Loss Account
Total
(The accompanying notes are an integral part of the financial statements)
ANNUAL REPORT 2011
21
Statement of cash flows For the years ended 31st December 2011 and 2010 In U.S. Dollars Note CASH FLOWS FROM OPERATING ACTIVITIES
2011
2010
(30,345,108.45)
2,782,909.82
117,239.56
103,971.55
Gain on sale of investments
(199,227.28)
(250,324.61)
Gain on disposal of fixed assets
(120.82)
(248.17)
388,568.18
(412,693.66)
(30,038,648.81)
2,223,614.93
Reserve for unexpired risks
(493,505.21)
980,150.60
Reserve for outstanding losses
54,737,100.99
3,595,827.96
Reinsurance payables
(1,415,355.55)
1,347,223.23
Reinsurance receivables
(16,879,998.01)
(5,623,370.70)
Other payables
251,343.26
2,126.78
Other receivables
(1,372,678.51)
(434,376.08)
4,788,258.16
2,091,196.72
Purchase of fixed assets
(476,122.40)
(121,608.49)
Purchase of investments
(15,080,288.82)
(5,559,624.58)
Proceeds from the sale of fixed assets
146.07
274.15
Proceeds from the sale of investments
5,751,022.60
3,677,517.37
Net cash used in investing activities
(9,805,242.55)
(2,003,441.55)
1,320,000.00
-
Dividend paid to equity holders of the Corporation
(1,663,145.00)
(831,572.50)
Net cash (used in) provided by financing activities
(343,145.00)
(831,572.50)
Net (decrease) increase in cash
(5,360,129.39)
(743,817.33)
Cash at beginning of year
72,732,019.39
73,457,834.29
(75,787.21)
18,002.43
67,296,102.79
72,732,019.39
Profit / (loss) for the year Adjustments for Depreciation
Unrealised (gain)/loss on exchange CHANGES IN
Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of equity shares
Effect on currency exchange Cash at end of year (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 2011 and 2010 These notes form an integral part of the financial statements. 1. GENERAL INFORMATION
1.1 Corporate 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 Floor, Tower B, Chamnan Phenjati Business Center, 65 Rama 9 Road, Huaykwang, Bangkok.
The principal activity 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.
1.2 Severe flood disaster
Due to severe flood disaster which inundated large parts of Thailand including many economic areas and industrial zones during August, 2011 to December, 2011 a number of losses were reported and these losses materially affected the financial statements of the Corporation. The financial impact of the flood losses reflected in the financial statements are as below: (Unit : US$)
LOSS RESERVES
Gross claims
144,261,297
Claims reserve refundable from Proportional Retrocessionares
(91,056,144)
Net claims
Less : Claims reserve refundable from Excess of Loss Contracts
Net claims expense
53,205,153 (16,998,182) 36,206,971
After the reporting period, the Corporation has received preliminary loss advices without supporting loss survey report, total gross claim in approximately US Dollar 31.02 million and net claim in approximately US Dollar 6.85 million. The Corporation did not account for the claims in the reporting period because of lack of adequate reliable loss survey information for accounting for loss reserve.
Even though the Corporation’s Management set up loss reserve based on the best estimate, taking into account the available facts and considered appropriate assumptions there are inherent uncertainties in the completeness and accuracy of the information and assumptions used by the Management. While preparing loss reserve as at the time of preparation of financial statements, claims were still under development. There is, therefore, likelihood of actual loss reserve differing from the loss estimates with the passage of time and availability of reliable information from cedants. However, the Corporation Management might consider to restate the financial statements to reflect the receipt of reliable loss information after the reporting date.
ANNUAL REPORT 2011
23
Notes to the financial statements For the years ended 31st December 2011 and 2010 2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements are prepared in accordance with the provisions of the Agreement and guidelines issued by the Council of Members (“the Provisions and Guidelines”).
The financial statements are prepared on the historical cost basis except as stated in the accounting policies. They are prepared and presented in United States Dollars (“US$”).
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 is revised in any future period affected.
3. SIGNIFICANT ACCOUNTING POLICIES
3.1 Foreign currency transactions
3.2 Cash
24
Reserves for unexpired risks are provided at 40% of premiums net of retrocessions for all type of insurances.
3.4 Reserves for outstanding claims
Cash in the statement of cash flow comprises cash balances at bank and on hand.
3.3 Reserves for unexpired risks
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 Profit and Loss Account.
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% of reserves for outstanding claims is provided for IBNR.
3.5 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 overdue more than one year from companies with poor records of settlement of accounts.
ASIAN REINSURANCE CORPORATION
Notes to the financial statements For the years ended 31st December 2011 and 2010
3.6 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:
1. 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 of any tax or duty. The Corporation shall not be exempted from taxes on charges which are no more than payments for public utility services which the Corporation must withhold tax.
2. In the determination of net 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 total income except income from underwriting derived from Thailand. Income tax presented in the financial statements is computed in accordance with the Host Country Agreement above.
3.7 Provisions
3.8 Offsetting
Provisions are recognised when it is probable that an outflow of resources embodying 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.
Financial assets and liabilities are offset and the net amount is reported in the statement of financial position 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.
3.9 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 income 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.
ANNUAL REPORT 2011
25
Notes to the financial statements For the years ended 31st December 2011 and 2010
3.10 Expenses
Commission
Commission is expensed when it occurs.
Expenses of management
Expenses of management are allocated to each insurance class as proportion to the net premium income.
3.11 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:
- Held-for-trading
- 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 intention 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 investment is amortised using the effective interest rate method over the period of investment.
Investments other than those held for trading or intended to be held to maturity, are classified as availablefor-sale and are stated at fair value, with any resultant gain or loss recognized directly in a separate component of equity. The impairment losses and foreign exchange gains and losses of investments are recognized in the Profit and Loss Account. When these investments are disposed, 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.
26
The fair value of trading investments in active markets is based on quoted market values at the balance sheet date. Fair values 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.
ASIAN REINSURANCE CORPORATION
Notes to the financial statements For the years ended 31st December 2011 and 2010
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.
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.
3.12 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 Profit and Loss Account. 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.
ANNUAL REPORT 2011
27
Notes to the financial statements For the years ended 31st December 2011 and 2010
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.
28
3.13 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 statement of financial position.
Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.
ASIAN REINSURANCE CORPORATION
Notes to the financial statements For the years ended 31st December 2011 and 2010
3.14 Amounts due to insurers or reinsurers and other payables
Amounts due to insurers or reinsurers and other payables are stated at cost.
4. SEGMENT INFORMATION (Unit : US$) 2011
2010
Premium - net of reinsurances
Miscellaneous
14,257,663.03
14,459,880.81
Fire
12,188,690.09
13,415,088.17
Marine
5,815,360.53
5,620,507.71
32,261,713.65
33,495,476.69
Total
Following is the detail for gross premium written by territory.
(Unit : US$) 2011
2010
28,913,868.14
24,175,590.26
Member - countries
Thailand
India
6,154,488.74
8,347,266.36
South Korea
6,186,183.98
7,896,314.37
Philippines
3,570,598.75
5,065,890.64
Bangladesh
1,225,647.13
1,109,250.47
Others
1,549,431.06
1,360,036.44
47,600,217.80
47,954,348.54
7,808,222.84
6,681,634.62
928,149.55
2,900,246.83
56,336,590.19
57,536,229.99
(24,074,876.54)
(24,040,753.30)
32,261,713.65
33,495,476.69
Countries in the UN/ESCAP region Other countries Total Less : Premium ceded Premium - net of reinsurances
ANNUAL REPORT 2011
29
Notes to the financial statements For the years ended 31st December 2011 and 2010 5. INCOME FROM INVESTMENTS AND BANK ACCOUNTS (Unit : US$) 2011
2010
Interests and dividends income
Interest on bank deposits and savings accounts
1,983,833.00
1,775,204.14
Interest on US$ bonds
348,313.21
115,517.18
Interest on reserves – net
79,096.27
73,601.98
Dividends
35,279.34
50,363.15
2,446,521.82
2,014,686.45
199,227.28
250,324.61
2,645,749.10
2,265,011.06
Gain on sales of investments Total
6. PROVISION FOR EXPENSES INCURRED BUT NOT PAID (Unit : US$) 2011 Employee benefit expenses Others Total
30
2010
162,735.14
145,006.78
6,831.07
16,457.67
169,566.21
161,464.45
For the year 31st December, 2011 the Corporation contributed US$ 56,461.63 (2010 : US$ 51,538.13) to the provident funds for its international and local employees as defined in Note 3.13. 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:
ASIAN REINSURANCE CORPORATION
Notes to the financial statements For the years ended 31st December 2011 and 2010 (Unit : US$) 2011
Balance as at 1st January
2010
145,006.78
157,745.59
Additions
17,728.36
34,568.64
Payments
-
(47,307.45)
Balance as at 31st December
162,735.14
145,006.78
Eligible employees
9
8
7. INVESTMENTS - NET (Unit : US$) 2011
2010
10,869,051.74
3,491,558.23
1,260,836.51
1,039,328.35
12,129,888.25
4,530,886.58
1,449,439.62
14,817.98
541,981.39
47,111.21
Total Thailand investments
1,991,421.01
61,929.19
Total investments at cost
14,121,309.26
4,592,815.77
(486,390.46)
62,478.74
13,634,918.80
4,655,294.51
Foreign investments
Bonds
Mutual funds and notes
Total foreign investments
Thailand investments
Mutual funds
Stocks
Unrealised gain / (loss) on revaluation of investments Total investments at fair value
All investments of the Corporation are investments available-for-sale. The unrealised gain / (loss) on revaluation of investments comprises the cumulative net change in the fair value of available-for-sale investments until the investments are disposed or are impaired.
ANNUAL REPORT 2011
31
Notes to the financial statements For the years ended 31st December 2011 and 2010 8. OFFICE CONDOMINIUM - NET (Unit : US$) Costs
As at 1st January, 2011
1,231,036.70
Additions
-
Disposals
-
As at 31st December, 2011
1,231,036.70
Accumulated depreciation
As at 1st January, 2011
1,077,157.20
Depreciation charge for the year
61,551.84
Disposals
-
As at 31st December, 2011
1,138,709.04
Net book value
32
As at 31st December, 2011
92,327.66
As at 31st December, 2010
153,879.50
ASIAN REINSURANCE CORPORATION
Notes to the financial statements For the years ended 31st December 2011 and 2010 9. FURNITURE, FIXTURES, VEHICLES AND OFFICE EQUIPMENT - NET (Unit : US$) Costs
As at 1st January, 2011
466,799.46
Additions
476,122.40
Disposals
(8,065.43)
As at 31st December, 2011
934,856.43
Accumulated depreciation
As at 1st January, 2011
300,297.05
Depreciation charge for the year
55,687.72
Disposals
(8,040.18)
As at 31st December, 2011
347,944.59
Net book value
As at 31st December, 2011
586,911.84
As at 31st December, 2010
166,502.41
Addition included payments of US$ 409,470.97 made by the Corporation for the implementation of new software which is in progress.
The gross amount of the Corporation’s fully depreciated furniture, fixtures, vehicles and office equipment that were still in use as at 31 December 2011 amounted to US$ 232,940.43 (2010: US$ 221,027).
ANNUAL REPORT 2011
33
Notes to the financial statements For the years ended 31st December 2011 and 2010 10. AMOUNTS DUE FROM INSURERS OR REINSURERS - NET (Unit : US$)
Amounts due from insurers or reinsurers Less : Allowance for doubtful debts Net
2011
2010
27,588,980.00
10,706,104.01
(382,738.50)
(397,366.59)
27,206,241.50
10,308,737.42
11. SHORT-TERM DEPOSITS AND CURRENT ACCOUNTS (Unit : US$) 2011
2010
Analysed by country
Sri Lanka
22,781,023.29
21,750,089.03
United Kingdom (Member - Country Bank)
20,981,868.50
23,943,752.83
India
14,632,289.17
14,550,000.00
Iran
5,243,372.09
4,730,617.61
Thailand
2,118,712.39
5,886,257.02
Philippines
950,207.99
1,042,179.83
66,707,473.43
71,902,896.32
63,161,726.12
60,541,440.55
Total
Analysed by currency
US Dollars
Baht
2,118,712.39
5,886,257.02
Euro
1,084,399.28
5,069,036.25
Peso (Philippines)
272,074.83
373,801.51
GB Pound
67,531.44
29,538.44
Yen
3,029.37
2,822.55
66,707,473.43
71,902,896.32
Total
34
ASIAN REINSURANCE CORPORATION
Notes to the financial statements For the years ended 31st December 2011 and 2010 12. SHARE CAPITAL (Unit : US$) Par value per share (in US$)
2010
2011 Number
Number
Amount
Amount
Authorised share capital
As at 1st January
1,000
100,000
100,000,000.00
100,000
100,000,000.00
As at 31st December
1,000
100,000
100,000,000.00
100,000
100,000,000.00
Subscribed and paid-up share capital
As at 1st January
1,000
30,239
30,239,000.00
29,739
29,739,000.00
Additional paid-in
1,000
600
600,000.00
500
500,00.00
As at 31st December
30,839
30,839,000.00
30,239
30,239,000.00
13. SHARE PREMIUM
Share premium is not available for dividend distribution. (Unit : US$)
Balance at 1st January Additional paid-in Balance at 31st December
2011
2010
15,610,000.00
15,010,000.00
720,000.00
600,000.00
16,330,000.00
15,610,000.00
ANNUAL REPORT 2011
35
Notes to the financial statements For the years ended 31st December 2011 and 2010 14. RESERVES
Statutory reserve
The statutory reserve is made in accordance with the provisions of the Agreement that requires to transfer one tenth of the annual profits to the statutory reserve until such reserve equals to 100% of the share capital of the Corporation. The Council of Members may, however, decide to continue such transfer beyond this limit.
Contingency reserve
At the 13th meeting of the Council of Members held in 1990 it was decided to allocate US$ 500,000 from Profit and Loss Appropriation Account to Contingency Reserve to cover contingent liabilities which may arise.
15. DIVIDENDS
At the 5th Shareholders Assembly Meeting held on 24th June, 2011, it was resolved to pay 5.50% cash dividends of paid up share capital. The dividends were paid to shareholders in August, 2011.
Dividend for the current year, if any, will be decided and approved by Shareholders Assembly. The same will be accounted for in shareholders’ equity as an appropriation of profits in the next year.
16. INCOME TAX DEDUCTIONS
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 3.6, 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.
17. APPROVAL OF FINANCIAL STATEMENTS
36
These financial statements have been agreed on 3rd April, 2012 by the President & Chief Executive Officer’s Corporation to present to the Shareholders’ Assembly for approval.
ASIAN REINSURANCE CORPORATION
Certificate by Management Board ACCOUNTS FOR THE PERIOD ENDED 31ST
DECEMBER 2011
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 December 2011 have been, incorporated into these accounts.
4. All currencies have been converted into US Dollars at the rates of exchange ruling on the date of transactions and at the rates of exchange ruling on 31 December 2011 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 2011 and of the results for the year ended on that date.
(Dr. Abdolnaser Hemmati) Chairman
(Ms. G.D.C. Ekanayake) Vice - Chairman
(Mr. A. K. Roy)) Member
(Mr. Seyed Mohammad Karimi) Member
(S.A. Kumar) President & CEO
ANNUAL REPORT 2011
37
Senior Management
S.A. Kumar Chartered Insurer M.A.., M.B.A., FIII., FCII. kumar@asianrecorp.com
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
38
President & Chief Executive Officer
Vice-President – Treaty
Dip. CE, AIII, Dip CII fac@asianrecorp.com
Parkpoome Nivatvongs
Sarinporn Namsirikul
Deputy Vice-President Chartered Insurer – Treaty MBA., ACII parkpoome@asianrecorp.com
MBA sarinporn@asianrecorp.com
Chailit Viriyaakavuti
Nittaya Agesitiphong
B.A.. (Acct.) ATII. chailit@asianrecorp.com
B.A.. (Mgt.) nittaya@asianrecorp.com
ASIAN REINSURANCE CORPORATION
Administrative Officer – R/I Accounts
Deputy Vice-President – Facultative
Deputy Vice-President – Investments
Administrative Officer – EDP