In The Name Of God The Compassionate, The Merciful. Alborz Insurance Co.

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3 In The Name Of God The Compassionate, The Merciful Alborz Insurance Co.

4 Key Figures (Million IRR) Year 1393 ( ) 1394 ( ) 1395 ( ) Gross Written Premiums 14,391, ,847 18,878,990 Written Premiums Growth 63% 21% 9% Retained Premiums 11,262,102 14,086,917 15,288,250 Claims Paid 7,361,333 10,817,895 13,539,305 Investment Income 8,369, , ,080 General Expenses 1,030,568 1,145,158 1,287,314 Expense Ratio 32% 11% 12% Total Assets 15,835,892 19,197,347 21,058,399 Net Technical Provisions 9,175,427 11,798,799 13,070,014 Shareholders Equity 4,637,667 5,002,049 5,239,823 1

5 Contents Alborz Insurance & the Insurance Industry 3 Message from the Managing Director 5 Management Team 6 Shareholders 7 Tables and Charts 9 New Local branches opened in Contact us 17 2

6 Alborz Insurance and the Insurance Industry On June 26, 1959, Alborz Insurance Co. (AIC) was registered as an independent Iranian general insurance company, with an initial capital of less than one million US dollars. Yorkshire Insurance, one of the oldest insurance companies in the world, had a 40% stake in this newly formed company, while the rest belonged to private Iranian persons. In less than a decade the company capital was raised to about 1.5 million US dollars, as both AIC and the Iranian economy grew rapidly in the 60`s. As the Iranian economy grew along with further need of insurance services, AIC went public in In October of 1980, nationalization of Insurance & Credit Insurance was enacted by the newly formed Revolutionary Council of the Islamic Republic of Iran. Under this Act AIC along with many other similar organizations was nationalized and new management was selected by the government. This government ownership continued until AIC became the first government owned and operated insurance company to be privatized after the Islamic Revolution. The majority of AIC shares were offered by the Government of the Islamic Republic of Iran to the general public through the Tehran Exchange on October 7th, The shares offered were sold in 38 seconds! Ever since privatization AIC has kept a rapid growth rate and its market share has grown from 5.5% to more than 7.5% even as two other government owned and operated companies were offered to the public and 30 more new insurance companies were registered and started operation in the Iranian insurance industry. Currently, AIC has a registered and paid capital of 4 trillion rials (equivalent to about 150 million US dollars at the current official exchange rate), which is second only to Iran Insurance Company, which is the oldest insurance company in Iran and still wholly owned and operated by the Government of the Islamic Republic of Iran. 3

7 AIC`s progress in the Iranian insurance industry is not limited to mere highest paid capital. AIC has received independent evaluation for different aspects of the services we provide such as: Best company for customer satisfaction, by Human Resources Vice President of the Islamic Republic of Iran. Selected as one of the top 100 companies of the nation by the Industrial Management Organization of Iran. Highest ranking insurance company in financial solvency by the Central Insurance of Iran (the independent supervisory agency of the insurance company industry in the nation). First in customer satisfaction for four years in a row by the Consumer Protection Agency of Iran. First in documentation retrieval system as evaluated by the Iranian National Archives. First in use of informatics and computer systems among all Iranian insurance companies, as evaluated by the Central Insurance of Iran. AIC was the first insurance company in Iran to apply for and receive ISO 9000 certification for all operations from independent international auditors, which has been maintained for the past 10 years. All these were achieved while the number of AIC personnel remained almost constant. AIC utilizes a vast nationwide network of close to 2100 exclusive agents to provide sales and services. This network is responsible for almost 95% of all insurance policies underwritten which is close to 87% of all premiums produced. AIC is also active in investment. According to the bylaws of the supervisory agency, premiums generated can be invested in the form of real estate, company shares and notes, bank deposits and shares in official exchanges (currently only in the Tehran Exchange). While AIC had always had excellent relations with major international reinsurance companies around the world, the international sanctions imposed on Iran forced us to discontinue such relationship for a few years. This led to innovative and creative financing and insurance schemes by AIC and many other Iranian insurance companies to temporarily distribute risk among domestic entities and to hedge properly against possible losses, without support from foreign reinsurance companies. AIC is currently discussing future cooperation with reinsurance partners from around the globe. Among the many companies we have chosen for future reinsurance cooperation are Munich Re, Hanover Re, Toyota Tsusho Insurance Management Corp., and many more. Also, AIC is actively discussing providing insurance services to international investors who plan to make different investments in Iran in the fields of oil & gas, petrochemical and other industries. AIC strategic goals and objectives for the future include: Maintaining top ranking financial solvency. Continuing optimization of financial and human resources. Competing based on service not on price of services provided. 4

8 Message From the Managing Director I am pleased to present to you Alborz Insurance Company s annual performance report for the fiscal year ending 21 March During more than half century of providing general insurance services to the Iranian market, AIC has proven time and again that consistent, quality and economic insurance can be provided to the market. Out track record is proof of this claim. This past fiscal year was no exception to our consistent, quality and economic provision of insurance services to our much diversified clientele. Our fiscal performance for this year matches our long lasting traditions at AIC. We are proud of our services to our clients through our highly effective and professional personnel, exclusive agents and brokers. AIC market share has held or expanded during the past few years (around 7.5%),while our main competitors have consistently lost market share to the newly formed insurance companies. This was made possible through hard work by all our workforce and our exclusive agents. Our premiums grew more than 8.5% while our operating income grew to healthy 9.6%. AIC after tax profits also grew to 9.6%, as well. We are still the leading insurance company in the market with the highest paid up capital of 40 trillion rials. More than 90 percent of our insurance services are provided through our more than 1500 exclusive agents and brokers serving the market. This enables AIC to provide the best possible personal service to our insurers at a very competitive price. These exclusive agents are fully supported by our highly skilled experts monitoring all activities and bringing quality to the services we provide. All this is made possible through a state of the art IT infrastructure operated by our own inhouse team of experts. Use of loss adjustors in the Iranian market is new. AIC is one of the more prominent Iranian insurance companies making more use of these services. Independent loss adjustors, not only make our operations more streamlined and economic but they bring assurance to our clients that fair and balanced expert evaluation of their losses is made. This will ensure our clients that should a loss occur, then; fast, fair and balanced compensation is provided. To enhance our activities we have reconstructed many of our branches around the country. New modern facilities are also being built all over the nation as well. These will also enhance our ability to not only present our company to the market, but will also enable us to expand our service base with a growing national economy. Bringing a balanced approach to all of the stakeholders, our clients, our shareholders and of course our workforce was only made possible through a highly plan-oriented, professional, diversified and dedicated management team. The dedication by our management team to provide consistent, quality insurance services at an economic price was only made possible by their commitment to meet and exceed projected objectives as outlined by our Board of Directors. It is only appropriate for me to thank our Board for their support, our management team for their dedication, our technical and financial professionals for their insights, our exclusive agents for their care and of course our clients for their trust. I can only assure them all that AIC is and will always be at their service. S. R. Tajdar 5

9 Management Alborz Insurance Management Team Top left : Mr. Seyed Rasool Tajdar Managing Director and Vice Chairman of the board Top Right : Dr. Amir Hamzeh Malmir Member of the Board Middle left : Dr. Mohammad Reza Taghvaei Chairman of the Board Bottom Right : Mr. Ata Allah Babaei Member of the Board Bottom left : Mr. Majid Naderi Member of the Board Dept M.D (Finance & Administration) 6

10 Shareholders Shareholder No. of shares % No. of shares % TOSEE MOEEN MELLAT INVESTMENT Co. 799,986, % 420,146, % MEHR AYANDEGAN FINANCIAL DEVELOPMENT Co. (L.L.P.) 753,000, % 751,000, % GOVERNMENT OF I.R.IRAN 715,667, % 693,667, % SABA TAAMIN INVESTMENT CO. (L.L.P.) 633,921, % 630,817, % SOCIAL INSURANCE FUND OF FARMERS, VILLAGERS AND NOMADS 520,661, % 520,661, % ATYE SABA INVESTMENT CO. (L.L.P.) 199,506, % - - IRANIAN PRIVATIZATION ORGANIZATION 44,379, % 29,723, % OTHER SHAREHOLDERS 332,876, % 953,982, % TOTAL 4,000,000, % 4,000,000, % 7

11 Shareholders 953,982, % 420,146, % 753,000, % 29,723, % SHAREHOLDERS AS OF 19/3/ ,661, % SOCIAL INSURANCE FUND OF FARMERS, VILLAGERS AND NOMADS 693,667, % 630,817, % 8

12 Performance Premium Table ( ) CLASS Premium, Million IR RLS Premium Growth % structure Marine 322, , , Fire 814,927 1,019,999 1,105, Auto 1,187, , , TPL (Motor) 5,763,200 5,587,550 5,310, Passenger Liability 591, , , Health 3,074,558 5, ,170, Accidents 104, , , Life 579,052 1,277,502 1,527, Eng. & Miscl. 467, , , Liability 940,071 1,011,163 1,223, Energy 258, , , Marine-hull 198, , , Aviation 87, , , Total 14,391,232 17,353,847 18,878,

13 Auto 5.3% 999,174 Liability 6.5% 1,223,160 Marine 1.7% 330,274 Aviation 1.7% 312, ,682 Energy 2.6% 160,675 Marine-hull 0.9% 1,105,510 Fire 5.9% Million RLS Written PREMIUM STRUCTURE 1395 ( ) TPL (Motor) 28.1% 5,310,309 Passenger Liability 2.6% 491, ,529 Eng. & Miscl. 3.2% 6,170,531 Health 32.7 % 1,527,432 Life 8.1% 147,965 Accidents 0.8% Total Premium Chart Billion RLS Aviation Marine-hull Energy Liability Eng. & Miscl. Life Accidents Health Passenger Liability TPL (Motor) Auto Fire Marine 10

14 Performance Claim Table ( ) CLASS Claim, Million IR RLS Structure Marine 61,683 57, , Fire 259, , , Auto 577, , , TPL (Motor) 3,212,841 3,978,252 4,780, Passenger Liability 269, , , Health 1,954,182 3,644,447 4,678, Accidents 34,344 69,662 87, Life 267, , , Eng. & Miscl. 95, , , Liability 585, , , Energy 1,470 3, , Marine-hull 34, ,650 20, Aviation 6,763 7,806 10, Total 7,361,333 10,817,895 13,539,

15 Auto 5.1% 692,276 Fire 2.6% 348,081 Marine 1.0% 140,316 Million RLS TPL (Motor) 35.3% 4,780,413 Marine-hull 0.2% 20,927 Aviation 0.1% 10,872 Energy 2.7% 364,402 Liability 5.1% 688,999 Eng. & Miscl. 2.1% 278,268 CLAIM STRUCTURE Life 7.0% 952, ( ) Accidents 0.6% 87,225 Passenger Liability 3.7% 496,153 4,678,697 Health 34.6% Total Claim Chart Billion RLS Aviation Marine-hull Energy Liability Eng. & Miscl. Life Accidents Health Passenger Liability TPL (Motor) Auto Fire Marine 12

16 Technical Reserves Year Technical Reserves 9,175 11,798 13,070 Billion IR RLS , ,798 Billion RLS ,

17 Balance Sheet As of 20th of March 2017 (29/12/1395) Assets (Million IRR) Cash and cash equivalents 1,084,206 1,601, ,148 Accounts & notes receivables 368, , ,021 Investments 4,422,619 4,338,209 6,564,518 Loans 360, , ,918 Reinsurance receivables 3,144,246 3,374,059 3,615,275 Insurance receivables 5,113,059 7,025,071 7,636,321 Fixed assets 4,313,300 4,574,877 4,467,298 Total Assets 18,806,728 22,045,646 24,214,499 Liabilities (Million IRR) Accounts & notes payables 677, ,825 1,207,374 Reinsurance liabilities 360,273 79,972 53,976 Insurance liabilities 274, , ,774 Proposed and payable dividends 34,496 1,082 1,747 Financial liabilities Technical provisions 12,146,263 14,647,098 16,226,114 Long-term liabilities 676, , ,691 Total liabilities 14,169,061 17,043,597 18,974,676 Shareholder s equity (Million IRR) Capital 3,600,000 4,000,000 4,000,000 Capital increased during the period Revaluation of fixed assets Legal reserve 104, , ,220 Capital reserve 333, , ,646 Accumulated profit 599, , ,957 Foreign currency exchange reserve Total shareholder's equity 4,637,667 5,002,049 5,239,823 Liabilities and shareholders' equity 18,806,728 22,045,646 24,214,499 14

18 Profit & Loss Account For the year ended 20th of March 2017 (29/12/1395) (Million IRR) Premiums 14,391,232 17,353,847 18,878,990 Reinsurance commissions 373, , ,474 Reinsurer's share of claims 1,759,363 2,050,063 2,408,543 Profit commissions 0 37,399 3,825 Total Operating income 16,523,604 19,798,097 21,760,832 Investment income 869, , ,080 Other income 30,695 35,358 4,876 Total income 17,423,307 20,718,705 22,591,788 Reinsurance Premiums 3,129,130 3,266,930 3,590,740 Claims paid 7,361,333 10,817,895 13,539,305 Commissions 1,106,203 1,261,165 1,418,830 Other underwriting expenses 814,175 1,074, ,472 Increase in technical provisions 3,471,596 2,623,372 1,313,243 Total operating expenses 15,882,437 19,043,565 20,744,590 Personnel and administrative expenses 1,030,568 1,145,158 1,287,314 Investment depreciation Total expenses 16,913,005 20,188,723 22,031,904 Net profit before tax 384, , ,884 Tax Net profit after tax 384, , ,884 Profit Allocation (Million IRR) Net profit 510, , ,884 Opening balance of accumulated profit 345, , ,166 Net adjustments during the year 0-42,110-42,110 Dividend profit -180, , ,000 Capital reserves 0-400,000 0 Allocable profit 675, , ,940 Legal reserves -25,515-26,499-27,994 Capital increase -51,030-52,998-55,989 Accumulated profit at the end of the year 599, , ,957 15

19 New Local Branches opened in 2017 Alborz Insurance New Local Branch KHORRAMABAD Alborz Insurance is developing and expanding its market all over the country. In 2017 a new local office of the company was opened in the city of KhorramAbad. Alborz Insurance New Local Branch ISFAHAN (Sheikh Bahaei) Alborz Insurance is developing and expanding its market all over the country. In 2017 a new local office of the company was opened in the city of Isfahan (Sheykh-Bahaei). 16

20 Contacts Name & Surname Position Tel. Fax Dr. Mohammad Reza Taghvaei Chairman of the Board Mr. Seyed Rasool Tajdar Managing Director & Vice Chairman of the Board Mr. Majid Naderi Dept M.D (Finance & Administration) Mr. Ahmad Safarzadeh Technical Deputy Mr. Amir Hossein Tavakoli Reinsurance & International Affairs Deputy Mr. Amir Sasan Torabizadeh Project & Planning Deputy Mr. Gholam Hossein Aghakhani Market Development & Customer Affairs Director Mr. Amir Arsalan Afrasiabi Human Resources Director Mr. Mahmood Aramoon Construction & Building Affairs Director Mr. Ardeshir Bazgirfard Liability Insurance Director Mr. Ali Farzin Life Insurance Director Mr. Masoud Gharagozlou Engineering Insurance Director Mr. Abdollah Gharehbaghian Head of Technical Council Ms. Narges Sohrabi Internal Audit Director

21 Contact us Name & Surname Position Tel. Fax Mr. Saeed Hajian Branch Affairs Director Mr. Ehsan Heidari Inspection Director Mr. Hamid Joulaei Agents Affairs Director Ms. Sahar Kamalkhani Research & Development Director Mr. Aziz Mehryari Marine Insurance Director Mr. Amir Mirzaei Planning & Systems Analysis Director Mr. Ali Reza Mogharrab Fire Insurance Director Mr. Nosratullah Mohammadi Public Relations & International Affairs Director Mr. Seyed Hassan Nabavi Legal Office Director Mr. Mir Mansour Naghibi Information Technology Director Mr. Mohammad Gholamzadeh Financial Director Mr. Ali Reza Pourhassan Reinsurance Director Mr. Mohammad Pour Rahimi Health Insurance Director Mr. Mohammad Tavakoli Motor Insurance Director Mr. Javad Vakili Investment & Economic Survey Director

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