ANNUAL REPORT

Transcription

1 b

2 In The Name Of God The Compassionate, The Merciful c

3 Key Figures Year 1391 ( ) 1392 ( ) 1393 () Gross Written Premiums 7,636,887 8,836,888 14,391,232 Written Premiums Growth 44% 16% 63% Retained Premiums 5,616,619 6,779,913 11,262,102 Claims Paid 4,179,302 5,601,785 7,361,333 Investment Income 466, ,399 8,369,008 General Expenses 603, ,484 1,030,568 Expense Ratio 24% 30% 32% Total Assets 9,585,972 11,915,070 15,835,892 Net Technical Provisions 3,927,271 5,703,831 9,175,427 Shareholders Equity 4,177,660 4,307,365 4,637,667 1

4 Contents Alborz Insurance & the Insurance Industry 3 Message From The Managing Director Management Team 5 6 Tables & Charts 7 Contact US 14 2

5 Alborz Insurance & 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 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. 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 three 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 for four years in a row 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 3

6 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 from privatization and as mentioned before the market share increased from about 5.5% to about 7.5% this year. AIC utilizes a vast nationwide network of close to 1700 independent 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. These independent agents received more than 1.1 billion rials in commission last year. This was only 7.7% of gross premiums generated. Besides providing the traditional insurance policies offered by other companies, AIC has introduced many new and innovative insurance services to the Iranian market as well. Among these are Omid Afarin Insurance (cancer treatment cost coverage), Veladat Insurance (infertility insurance) for newlywed couples and many more. These are exclusive to AIC for the next 5 to 7 years. 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). These investments generated 275 billion rials from bank deposits, 385 billion rials from company shares and notes, and more than 200 billion rials in other forms such as investment in the Tehran Exchange during the past fiscal year. While AIC had always 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. As these sanctions are expected to be lifted in 2016 and beyond, AIC is currently discussing future cooperation with previous reinsurance partners as well as new 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 investment in Iran in the fields of oil & gas, petrochemicals and other industries. All this was achieved by AIC while generating 510 billion rials of profit for our shareholders in the last fiscal year, which was 33% more compared to the previous year and while facing fierce competitions from other insurance companies. 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

7 Message From The Managing Director Alborz Insurance Company, AIC, has more than half a century of proven record in the Iranian insurance industry. One evidence of our success is receiving the Customer Satisfaction Award, from independent government auditors, for nine consecutive years. Financial transparency, and use of information technology are also two other factors that distinguish AIC from the rest of the Iranian insurance industry. After the government owned and operated Iran Insurance Company, AIC has the highest registered capital among all other domestic insurance companies, as well. This enables AIC to have a higher share in the market as more risks can be covered directly by the company, making our operation more profitable as we expand. Our business policy is based on risk management through portfolio management rather than pure market share expansion, which is the main objective of most of our competition. Increased market share has followed as well. We believe that long-term, stable and consistent customer relations will eventually have a much more positive impact on our business as a whole and will ensure our customers that we will be present when and if they need us. We have expanded our domestic operations by increasing the number of our branches as well as adding more agents. We expect a better market penetration with this expansion. Meanwhile, by expanding our information technology base better monitoring of our expanded operations is made possible. Keeping and furthering our customer base and consolidating our position in the market (with our increased market share as compared with the previous year) will be our main objective for the year 1394, ( ). S. R. Tajdar 5

8 Management Team Mr. Mohammad Reza Taghvaei Chairman of the Board Mr. Reza Kazemi Taklimi Member of Board Mr. Seyed Rasool Tajdar Managing Director & Vice Chairman of the Board Mr. Seyed Kamal Seyed Ali Member of Board Mr. Kavous Raeisi Member of Board 6

9 Performance Premium Table CLASS Premium Million IR RLS Premium Growth % structure Marine 201, , , Fire 474, , , Auto 670, ,471 1,187, TPL (Motor) 3,443,617 3,430,338 5,763, Passenger Liability 336, , , Health 970,729 1,496,187 3,074, Accidents 69,098 86, , Life 276, , , Eng. & Miscl. 251, , , Liability 671, ,169 1,053, Energy 120, , , Marine-hull 82,952 55, , Aviation 66,952 83,482 87, Total 7,636,887 8,836,888 14,391,

10 Million RLS 1,187,560 Auto 8.3% TPL (Motor) 40% 814,927 Fire 5.7% 5,763, ,755 Marine 2.2% 87,851 Aviation 0.6% 198,651 Marine-hull 1.4% 258,665 Energy 1.8% Written PREMIUM STRUCTURE 1393 () Passenger Liability 4.1% 1,053,639 Liability 7.3% 591, ,219 Eng. & Miscl. 2.5% Health 21.4% 579,052 Life 4% Accidents 0.7% 3,074, ,391 TOTAL PREMIUM Billion RLS Aviation Marine-hull Energy Liability Eng. & Miscl. Life Accidents Health Passenger Liability TPL (Motor) Auto Fire Marine 8

11 Performance Claim Table CLASS Claim Million IR RLS structure Marine 12,468 15,782 61, Fire 166, , , Auto 382, , , TPL (Motor) 2,067,126 2,729,794 3,212, Passenger Liability 105, , , Health 867,943 1,265,006 1,954, Accidents 20,526 21,131 34, Life 128, , , Eng. & Miscl. 64,700 37,200 95, Liability 336, , , Energy 0 0 1, Marine-hull 23,810 20,937 34, Aviation 2,571 2,232 6, Total 4,179,302 5,601,785 7,361,

12 Million RLS 577,758 Auto 7.8% TPL (Motor) 43.6% 259,199 Fire 3.5% 3,212,841 61,683 Marine 0.8% 34,321 Marine-hull 0.5% 6,763 Aviation 0.1% 1,470 Energy 0% 585,151 Liability 7.9% CLAIM STRUCTURE 1393 () 95,983 Eng. & Miscl. 1.3% Passenger Liability 3.7% 267,741 Life 3.6% 269,897 Accidents 0.5% Health 26.5% 34,344 1,954,182 TOTAL CLAIM Billion RLS 1954 Aviation Marine-hull Energy Liability Eng. & Miscl. Life Accidents Health Passenger Liability TPL (Motor) Auto Fire Marine 10

13 Technical Reserves Year Technical Reserves 5,565 7,524 12, ,146 Billion RLS ,565 7,

14 Alborz Insurance Co. Balance Sheet As of 20th March 2015(29/12/1393) Assets (Million IRR) Cash and cash equivalents 343, ,452 1,084,206 Accounts & notes receivables 176, , ,419 Investments 2,704,367 3,618,778 4,422,619 Loans 310, , ,879 Reinsurance receivables 1,780,299 1,934,808 3,144,246 Insurance receivables 2,147,162 2,913,865 5,113,059 Fixed assets 3,761,426 3,890,488 4,313,300 Total Assets 11,223,471 13,735,620 18,806,728 Liabilities (Million IRR) Accounts & notes payables 573, , ,556 Reinsurance Liabilities 123,144 64, ,273 Insurance Liabilities 326, , ,033 Proposed and payable dividends ,496 Financial liabilities 0 45,000 0 Technical Provisions 5,564,770 7,524,381 12,146,263 Long-term Liabilities 458, , ,440 Total liabilities 7,045,811 9,428,255 14,169,061 Shareholder s equity (Million IRR) Capital 600,000 3,600,000 3,600,000 Capital increased during the period Revaluation of fixed assets 3,000, Legal reserve 60,000 79, ,727 Capital reserve 244, , ,659 Accumulated profit 273, , ,281 Foreign currency exchange reserve Total sharedholder's equity 4,177,660 4,307,365 4,637,667 Liabilities and Shareholders' equity 11,223,471 13,735,620 18,806,728 12

15 Alborz Insurance Company Profit & Loss Account For the year ended 20th March 2015(29/12/1393) (Million IRR) Premiums 7,636,887 8,836,888 14,391,232 Reinsurance commissions 239, , ,009 Reinsurancer's share of claims 1,083,230 1,312,330 1,759,363 Profit commissions 32,080 23,646 0 Total Operating income 8,991,927 10,432,570 16,523,604 Investment income 466, , ,008 Other income 14,942 6,886 30,695 Total income 9,473,069 11,401,855 17,423,307 Reinsurance Premiums 2,020,268 2,056,975 3,129,130 Claims paid 4,179,302 5,601,785 7,361,333 Commissions 682, ,478 1,106,203 Other underwriting expenses 663,142 10, ,175 Increase in technical provisions 1,034,969 1,764,429 3,471,596 Total operating expenses 8,580,448 10,235,129 15,882,437 Personnel and administrative expenses 603, ,484 1,030,568 Investment depreciation Total expenses 9,184,245 11,017,613 16,913,005 Net profit before tax 288, , ,302 Tax Net profit after tax 288, , ,302 Profit Allocation (Million IRR) Net profit 288, , ,302 Opening balance of accumulated profit 213, , ,524 Net adjustments during the year 0-62,537 0 Allocable profit 502, , ,826 Legal reserves ,212-25,515 Capital reserves -42,337-38,424-51,030 Dividend profit -186, , ,000 Capital increase Accumulated profit at the end of the year 273, , ,281 13

16 Contact Us Name & Surname Position Tell Fax Mr. Taghvaei Mohammad Reza Chairman of the Board Mr. Tajdar Seyed Rasool Managing Director & Vice Chairman of the Board Mr. Naderi Majid Dept M. D (Finance & Administration) naderi@bimehalborz.ir Mr. Safarzadeh Ahmad Technical Deputy safarzadeh@bimehalborz.ir Mr. Tavakoli Amir Hossein Reinsurance & International Affairs Deputy tavakoli@bimehalborz.ir Mr. Torabizadeh Amir Sasan Project & Planning Deputy torabizadeh@bimehalborz.ir Mr. Pourhassan Ali Reza Reinsurance Director pourhassan@bimehalborz.ir Mr. Farzin Ali Life Insurance Director farzin@bimehalborz.ir Mr. Pour Rahimi Mohammad Health Insurance Director pourrahimi@bimehalborz.ir Mr. Gharehbaghian Abdollah Head of Technical Council gharehbaghian@bimehalborz.ir Mrs. Kamalkhani Sahar Research & Development Director kamalkhani@bimehalborz.ir Mr. Aghakhani Gholam Hossein Market Development & Customer Affairs Director aghakhani@bimehalborz.ir Mr. Mohammadi Nosratullah Public Relations & International Affairs Director mohammadi@bimehalborz.ir Mr. Gharaghozlou Masoud Engineering Insurance Director gharagozlou@bimehalborz.ir 14

17 Contact Us Name & Surname Position Tell Fax Mr. Mehryari Aziz Marine Insurance Director Mr. Mogharrab Ali Reza Fire Insurance Director Mr. Bazgirfard Ardeshir Liability Insurance Director Mr. Tavakoli Mohammad Motor Insurance Director Mr. Naghibi Mir Mansour Information Technology Director Mr. Mirzaei Amir Planning & Systems Analysis Director Mr. Parvaneh Iraj Financial Director Mr. Gholamzadeh Mohammad Internal Audit Director Mr. Vakili Javad Investment & Economic Survey Director Mr. Nabavi Seyed Hassan Legal Office Director Mr. Hajian Saeed Branch Affairs Director Mr. Joulaei Hamid Agents Affairs Director Mr. Afrasiabi Amir Arsalan Human Resources Director Mr. Aramoon Mahmood Construction & Building Affairs Director Mr. Heidari Ehsan Inspection Director

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