ALBORZ INSURANCE CO ALBORZ INSURANCE CO ANNUAL REPORT

Transcription

1 R Gharani Ave. Karimkhan. Tehran. Iran Tell : info@alborzins.ir ALBORZ INSURANCE CO ALBORZ INSURANCE CO UKAS QUALITY MANAGMENT ANNUAL REPORT 29-21

2 Alborz Insurance Company Key Figures Million IRR Gross Written Premiums 2,468,34 2,823,439 3,141,58 Written Premiums Growth Retained Premiums 27% 1,698, ,975,632 11% 2,121,494 Contents Claims Paid 1,219,99 1,579,341 1,852,135 Alborz Insurance in Brief Investment Income 176, , ,816 Alborz Field of it, s Activities & Achievements General Expenses Expense Ratio Total Assets Net Technical Provisions Shareholder s Equity 265,833 27% 3,13,332 1,526, , ,862 23% 3,371,969 1,67,15 596,92 411,186 25% 3,849,976 1,89, ,38 Management Team Message from the Chairman Underwriting Performance Balance Sheet & Profit & Loss Accounts

3 Introduction of AIC the First State owned Insurance Co recently Privatized Alborz Insurance Company (AIC) was established as a private entity on 21 st July 1959 with an initial capital of 75 Million Iranian Rials which was later increased to 26 Billion Iranian Rials. Recently, after privatization, the capital was once again increased to 4 Billion Iranian Rials, (4 Million Dollars). Keeping in mind the present market situation and considering. the fast growth in the local Insurance market, AIC is planning to increase its capital from 4 Billion IR Rials (4 Million Dollar)to 6 Billion IR Rials(6Million Dollar) with the primary aim of providing superior quality insurance services, generating diversity in insurance business and attaining customer satisfaction. Within a short period of commencing its activities, the company was able to obtain the confidence of owners of capital and commodities. The company installed and implemented Quality Management System in the technical insurance managements (mobile,,, Engineering, and Personal) in the year 24, and succeeded receiving ISO91-2 certificate by BVQ I and approved by two Credit Institution UKAS, a British company, and COFRAG a French company. In the year 25, the management of Data processing, Finance, Investment and economic survey and Reinsurance were enhanced to the system. With more than 5 Years of experience and a successful prior record, AIC continued its operations under the same name. Presently, with 5 Branches, 1524 Agents, 276 Brokers and about 13 employees nationwide, AIC is well prepared and fully equipped to render insurance services to its customers. Today the importance of energy insurance has persuaded insurance companies to consider the subject more seriously and specially for the provision of suitable coverage. Having extended its activities in the field of risks relating to the energy sector, similar to other insurance fields, and in order to attend to the domestic demands for Energy Insurance coverage, AIC had expanded its domain by creating a special Committee called "Oil And Gas Committee" while launching a new specialist branch in southern Iran, in the region called Assalouyeh, which holds one of the largest Gas reserves in the world. Alborz Insurance Company being one of the most successful and the foremost insurance company was able to place itself among the Top Hundred entities of Iran as usual. AIC since several years, was able to maintain the foremost status in the local insurance market in different fields like providing customer oriented services with utmost efficiency, effective presence in capital market and promoting and utilizing IT, and was praised for its activities by the Government, Members of the Islamic Consultative Assembly and other authorities in the country over several years. On 16/11/29 AIC was the first State Owned company which got privatized and succeed in breaking the record for sales of its shares in its premier issue, and was able to exhibit itself as the foremost company in the stock market and register its name in the history of the country's Stock Exchange. AIC has recently received a Certificate of Customers Right Protection by the honorable Commerce Minister. The under mentioned report is an outline of the activities of AIC in the recent year, which resulted in its being ranked as the 91 st amongst the 1 Foremost companies of Iran. Also, for four consecutive years, the company was able to attain the premier position for "Respecting and Attaining Customer Satisfaction" among all other private and state owned Banks and Insurance Companies in Iran, and was awarded the coveted "Merit Reward" by the Governor of Tehran Province. Furthermore, as per the opinion polls for comparing and regulating Customer Satisfaction carried out by the Deputy Office for Human Resources Development and Management of the President of Islamic Republic of Iran, AIC was able to obtain the first position among all administrative organizations. Being ranked first among all private and public insurance companies in five evaluation indices carried out by the Financial Supervision Management of the Central Insurance Company, for deployment of IT, Transparency in Financial Reporting, Presence and Proficiency in Capital Investment market, provides further reason for AIC to be proud of its achievements. Adequate financial and capital reserves, professional services of its dedicated staff and prompt and unbiased assessment and settlement of claims, indicate the sound status of AIC. The existence of long term and trustworthy clientele and widespread contacts with the International Insurance Markets, conversant and responsive management and good financial relations can also be considered as the best indicators of its endurance. Payments of heavy claims within short period of time are the indicators of speed, accuracy and financial strength of AIC and it endeavor to respect the rights of its clients. The total gross premium for the year (29) was about IR Rials 3,141 Billion and IR Rials 1852 Billion claims have been paid with a Loss Ratio of 59%. ALBORZ INSURANCE Co. 1 2

4 Alborz Field of Activities 1- Performance and operation of Direct Insurance in Life And Non Life Assurances, in accordance with the license issued by the Central Insurance of Islamic Republic of Iran. 2- Acceptance and cession of re insurances in the country and abroad within the framework of Central Insurance of Islamic Republic of Iran. 3- Investments made from resources, like capital, Technical and Legal Reserves and savings within the framework of the Bill ratified by the High Council of Insurance. 4- Company is allowed to enter into any operation including the establishment of subsidiaries, purchasing and selling other company shares with the transferring rights, and other trade and economic activities which are necessary for the development of the company. Alborz Achievement The following are the achievements from the year 27 to 29: Alborz Insurance Company has managed to achieve many of its set objectives in the insurance industry and among other executive institutions of the country in the recent years. Amongst its achievements, one can highlight the attainment of the prime status in the Insurance Industry according to the classifications set by the Central Insurance of the Islamic Republic of Iran in the year 28. Appreciation letter of the President of Bimeh Markazi Iran for obtaining the Prime Status for Customer Satisfaction. Honorable Mr. Mohammad Ebrahim Amin Managing Director of Alborz Insurance Co. As reported by the deputy office of the President for Developing and Managing of Human resources, your company has acquired the premium position amongst other entities in the assessment of the level of customer satisfaction and service provision in 27 and this achievement is worthy of applause. I herewith thank you for the continuous trend of improvement in the manner of service provision during the recent years and the elevation of the level of your company among all entities from the fourth position in 26 to the first position in 27. This has resulted from the efforts of your colleagues and your hard work. Hope that this trend also continues in the future and the relevant indices are enhanced. In reality, the dominance of Insurance Companies in honoring customers and providing satisfactory services to the clients is the best publicity for the Insurance Industry, eventually leading to the expansion of the industry. May the Almighty bestow his strength and determination upon you and your colleagues. Javad Farshbaf Maherian President of Bimeh Markazi Iran. The Letter of Appreciation by the President of Bimeh Markazi Iran for being chosen as the Foremost State-owned Insurance Company. Honorable Mr. Mohammad Ebrahim Amin Managing Director of Alborz Insurance Co. Herewith I would like to express my gratitude to you and your colleagues for attaining the foremost status amongst State-Owned Insurance Companies during an assessment of Public insurance companies from the view point of Financial indexes (extracted on the basis of information stated in the Financial Reports for the year 27). It is hoped that the transition of the Insurance Industry from Tariff Supervision to Non-tariff and financial supervision would experience an elevation in the operational efficiency and capability of Insurance companies. Undoubtedly the expansion of the country s insurance industry and attainment of a superior position, nationally and internationally, on the basis of the principle of customer satisfaction and respect, would demand effort and unity of all those involved in this industry. Pray the Almighty bestows upon you and your colleagues the strength to further promote the sacred aims of the Islamic Republic of Iran. Javad. Farshbaf Maherian President of Bimeh Markazi Iran. 3 4

5 Written Premium in the year 29, in comparison to the previous year. Alborz Insurance generated a premium amounting to IR Rials 3141 billion in the year 29, as compared to IR Rials 2823 billion in the year 28. Moreover the company forecasted that by the end of 29/1, the generated Insurance Premium shall reach an amount of IR Rials 2955 billion IR.Rials. Claims Paid in the year 29, in comparison to the previous Fiscal Years. Alborz Insurance Company paid the claims amounting to IR Rials 1852 billion to its clients by the end of 29/1, whereas this figure was IR Rials1579 billion in 28/29, and IR Rials 1219 billion in 27/28. The Company paid the lowest amount of claims in comparison to other local Insurance companies. Our Major Energy Clients are as follows: N.I.O.C NATIONAL PETROCHEMICAL CO. NATIONAL IRANIAN OIL ENGINEERING AND CONSTRUCTION CO. MAPNA. IRANIAN OIL PIPELINE AND TELECOMMUNICATION CO IRAN WATER AND POWER RESOURCES DEVELOPMENT NATIONAL PETROCHEMICAL CO. PAYANDAN CO GHAED BASEER PETROCHEMICAL CO MEHRVARZAN CO FARAB CO OIL DESIGNING AND CONSTRUCTION CO (N.I.O.R.D.C) IRANIAN OFFSHORE OIL CO (I.O.O.C) TASDID OFFSHORE DEVELOPMENT CO (N.I.O.E.C) JAHAN PARS CO SAZEH CO. TANAVOUB CO TOOS ASPHALT CO MIDDLE EAST ENERGY DEVELOPMENT CO P.O.G.C CONSORTIUM OF NARGAN, TECHNIMONT, GAMA AND DORRIZ CONSORTIUM OF SINOPEC ENGINEERING INCORPORATION (SEI), SAZEH CONSULTANT AND OIL DESIGN AND CONSTRUCTION CO (O.D.C.C) SAKHTAREH FARDA O.T.C Seyed Rasool Tajdar Deputy Managing Director (Finance & Administration) Abbas Hajfathaliha Member of Board Mohammad Ebrahim Amin Chairman & Managing Director Mohammad Reza Taghvaei Member of Board (Incharge Of Distribution Network) Hossein Salimi Member of Board 5 6

6 Message from Chairman & CEO The first year of our life as a publically held company, as opposed to a government owned and operated company, proved to be a very smooth transition. Usually, when such changes take place, some fluctuations in company performance is expected. Alborz Insurance Co. did not go through such major fluctuations; on the contrary, our growth continued seamlessly with our change in ownership. Change from government ownership to private publically held ownership required great care so as to assure both our new shareholders and of course our customers that AIC will be better, faster and more efficient than before. Pre-planning such changes enabled us to go through this transition without any major negative changes to our standing in the Iranian market or to our portfolio. Our commitment to customer satisfaction which is the basis of customer loyalty in today s highly competitive business environment has not changed and will always be a part of our corporate identity. For AIC customer satisfaction and preserving shareholder interests are not considered mutually exclusive, but actually, mutually inclusive. When balanced properly, as we have had it balanced for these past few years, no level of competition can drive into our market share and our market will always expand or create dissatisfaction for our shareholders. During this year we had 11% growth in our underwritten premiums while our assets also grew by more than 8%. We expanded our distribution channels as well. The number of our independent agents around the nation grew from 9 to 14. This will enhance our position in the ever more competitive insurance market of Iran. As more insurance companies enter the market and competition intensifies, which we fully embrace and think of as a positive development for the long-term assurance of continuous growth and health of our national economy, AIC will also face formidable forces of the market more than before. Increasing the number of our agents, who are the primary distribution channels of our services and produce more than 8% of our premium, will expand selectively, so as to enable us to not only keep but also to enhance our position in the market. Our Comprehensive Insurance Software enables us to monitor activities throughout the nation with great precision and in real time. This system, developed by Iranian software firms, operates throughout the whole company and is our tool to monitor, guide and plan our activities around the country daily as well as providing us with a great tool to evaluate market changes and planning basis. We have made more investments in expanding this system by adopting the new (.net) platform. This will further enable us to respond to changes in our customer s needs faster and with much more ease than before. This system will continue to grow and expand in the future as well. This year we showed that more than 5 years of ever expanding insurance business is not achieved by accident. Integration of management with operations and streamlining our business using some of the most up-todate systems in the world enables us to look forward to a greater and brighter future to come. Mohammad Ebrahim Amin Through enhanced monitoring of both the market and our agents we held our market share while many other companies lost market share to the newly formed insurance companies. 7 8

7 Total Premium Underwritting Performance The following table shows the premiums and paid claims Class TPL Health Accidents Life Written Premiums ,89 365, , ,8 64, ,163 46,18 138,653 Million IR RLS ,23 421, , ,498 92,28 267,852 5, , , , , ,33 111, ,28 46, ,447 Premiums Growth % Structure (24.6) (7.3) (9.3) ,971 77, , ,42 2,137 18,386 13,572 58,588 Paid Claims Million IR RLS 28 25,65 174, ,57 64,246 21, ,49 15,563 83, , , ,713 92,928 21, ,857 12,58 65,91 Structure Billion IR Rls Billion IR Rls Eng & Miscl Life Accidents Health TPL Total Claim Eng & Miscl Life Accidents Health 93 TPL % 12% 8% 12% 17% 6% 17% 1% 1 1 1% Written Premiums Structure (29-21) 18% Claims Structure (29-21) 1% 31% 31% TPL 9% Health 32% TPL 3% 9% Health 1% 18% 49% 1 1% Accidents Life Eng& Miscl 1% 9% 1% Accidents Life 15% Eng& Miscl Eng & Miscl 42,14 426, , ,38 195,7 182, Technical reserves Total 2,468,34 2,823,439 3,141, ,219,99 1,579,341 1,852, Billion IR Rls

8 Alborz Insurance Company Balance Sheet As at 2th March 29 (29/12/) (Million IRR) Alborz Insurance Company Profit & Loss Account For the year ended 2th March 29 (29/12/) (Million IRR) Assets Cash and cash equivalents 19, ,47 199,477 Premiums 2,468,34 2,823,439 3,141,58 Accounts & notes receivables 319, ,95 14,535 Reinsurance commissions 85,85 67,91 145,4 Investments 1,211,837 1,288,549 1,367,777 Reinsurer`s share of claims 39, ,975 48,677 Loans 112, ,2 285,46 Profit commissions 16,298 12,515 22,469 Reinsurance receivables 14, ,6 84,679 Total operating income 2,879,786 3,357,2 3,79,126 Insurance receivables 82, ,195 1,29,323 Investment income 176, , ,816 Fixed assets 451,99 483,342 54,345 Other income 1,231 4,281 57,672 Total Assets 3,13,331 3,979,388 4,592,542 Total income 3,57,164 3,598,98 4,89,614 Liabilities Accounts & notes payables 246, ,63 192,298 Reinsurance premiums Claims paid Commissions 769,765 1,219,99 227, ,87 1,579, ,9 1,2,86 1,852, ,847 Reinsurance liabilities Insurance liabilities Proposed and payable dividends Technical Provisions 515, ,526, , ,464 15,689 2,277, ,67 169,29 13,951 2,552,455 Other underwriting expenses Increase in technical Provisions Total operating expenses Personnel and administrative expenses Investment depreciation 69, ,438 2,569, ,833 48,429 7, ,294 2,933, ,862 72,641 9,32 139,784 3,428, ,186 (3,57) Long-term liabilities 38, , ,434 Total expenses 2,883,474 3,333,877 3,88,788 2,597,885 3,382,468 3,748,234 Net profit before tax 173,69 264,221 28,826 Tax (2,929) (22,999) Net profit after tax 152, ,222 28,826 Shareholder`s equity Capital 26, 26, 4, Profit Allocation (Million IRR) Legal reserve 34,891 59,13 59,14 Capital reserve 72,188 84,25 126,374 Net profit 83, ,31 28,826 Accumulated profit 91, , ,92 Opening balance of accumulated profit 32,666 91,794 12,488 Foreign currency exchange reserve 73,573 65,89 Net adjustments during the year ,71 532, ,92 844,38 Allocable profit Legal reserves 115,95 (15,276) 255,825 (24,122) 476,24 Capital reserves (7,638) (12,61) (42,124) Dividend profit (1,242) (91,794) (113,62) Liabilities and Shareholder`s equity Capital Increase (61,36) 3,13,331 3,979,388 4,592,542 Accumulated profit at the end of the year 91, , ,

9 Address Name & Surname Position Tell Fax Mr. Amin Mohammad Ebrahim Chairman & Managing Director Mr. Tajdar Seyed Rasool Member of the Board & Deputy General Manager Mr. Taghvaei Mohammadreza Member of the Board bimehalborz.ir Mr. Tavakoli Hossein Reinsurance & International Affairs Deputy bimehalborz.ir Mr. Safarzadeh Ahmad Technical Deputy bimehalborz.ir Mr. Torabizadeh Amirsasan Project & Planning Deputy bimehalborz.ir Mr. Afrasiabi Arsalan Human Resources Director bimehalborz.ir Mr. Aghakhani Gholam Hossein Market Development & Customer Affairs Director bimehalborz.ir Mr. Aramoon Mahmood Construction & Building Affairs Director bimehalborz.ir Mr. Bazgirfard Ardeshir Ins Director bimehalborz.ir Mr. Esfahani Javad Reinsurance Advisor bimehalborz.ir Mr. Gharagozlou Masoud Engineering Director bimehalborz.ir Mr. Hajian Saeed Branch Affairs Director bimehalborz.ir Mr. Heidari Ehsan Inspection Director Mr. Jolaei Hamid Agents Affairs Director Mr. Mehryari Aziz Ins Director bimehalborz.ir Mr. Mirzaei Amir Planning & Systems Analysis Director bimehalborz.ir Mr. Mohammadi Nosratullah Mr. Mogharrab Alireza Mr. Naghibi Mirmansour Mr. Narimani Rasool Mr. Parvaneh Iraj Mr. Pourhassan Alireza Mr. Pour Rahimi Mohammad Mr. Safajo Naser Mr. Salehi majid Mr. Sharifian Majid Mr. Vakili Javad Public Relations & International Affairs Director Insurance Director Information Tecnology Director Legal Office Director Financial Director Reinsurance Director Life Insurance Director Internal Audit Director Motor Ins Director Head of Technical Council Investment & Economic Survey Director bimehalborz.ir bimehalborz.ir bimehalborz.ir bimehalborz.ir bimehalborz.ir Pour bimehalborz.ir bimehalborz.ir bimehalborz.ir bimehalborz.ir Photo& Design: SeemStudio.com(Seyedamadian)