Jordanian Insurance Sector Report

Jordanian Insurance Sector Report

Insurance Sectorial Report مجموعة الاهلي للا سواق المالية والا ستثمارات Research & Studies Department E-mail: Researchdept@ahlibank.com.jo Corporate Finance Department E-mail: Corporatefinance@ahlibank.com.jo Table of Contents: Topic Pages About the Report 3 About the Sector 4 Main Financial Indicators - As of June 2012 5 Sector Financial Statements 9 Underwriting P&L Account 12 Sector Main Statistics 22 Sector Glossary 34 2

About the Report: مجموعة الاهلي للا سواق المالية والا ستثمارات * The following report aims to analyze the development of the Jordanian insurance sector over the past few years. More specifically, the analysis will focus on the different type of insurance and profitability per underwriting account. * Below is a list of the insurance companies that are used in our sample for studying the insurance sector in Jordan. As such, our sample contains 21 companies out of 28 insurance companies representing the insurance sector on the ASE. The remaining 7 companies were not included due to the fact that some of the companies have not disclosed their financials till the time of publishing of this report, while others are limited to the Islamic insurance system. Code* Company Name* Code* Company Name* Code* Company Name* MEIN Middle East Insurance HOLI Holy Land Insurance AIUI Arab Union International Insurance AAIN Al-Nisr Al-Arabi Insurance YINS Yarmouk Insurance NAAI The National Insurance JOIN Jordan Insurance ARSI Al-Manara Insurance JIJC Jordan International Insurance AICJ Arabia Insurance Company - Jordan AOIC Arab Orient Insurance AMMI Euro Arab Insurance Group JERY Jerusalem Insurance JEIC Jordan Emirates Insurance ARAS The Arab Assurers UNIN United Insurance ARIN Arab Life & Accident Insurance ARGR Arab Jordanian Insurance Group JOFR Jordan French Insurance PHIN Philadelphia Insurance MDGF The Mediterranean & Gulf Insurance (JO) *Source: Securities Depository Center webpage www.sdc.com.jo Key Findings and Recommendations: After studying the dynamics of the Jordanian Insurance sector, we were able to infer that currently the sector is a concentrated one in terms of written premiums. More specifically, two forms of insurance (motor and medical) account for the majority of written premiums. This indicates that while many services are offered, the market still demands motor and medical insurance. Additionally, the sector is suffering from a high level of saturation and competition, coupled with shallow market demands, thus resulting in losses and a negative effect on the industry. On the other hand, the market contains 28 companies, written premiums and profits are dominated by the top five companies. Moreover, the sector could benefit from reforms similar to those witnessed in 1984, where the insurance commission increased the minimum paid up capital, which would either drive companies to increase their capital or, and hopefully, drive companies in this market to merge and eventually alleviate and mitigate the losses. 3

Insurance Sectorial Report مجموعة الاهلي للا سواق المالية والا ستثمارات Research & Studies Department E-mail: Researchdept@ahlibank.com.jo Corporate Finance Department E-mail: Corporatefinance@ahlibank.com.jo In late fifties, the need for insurance surfaced in Jordan when Aqaba port started its operations. As a result, motor and marine insurance were heavily adopted at that time About the Sector: * Year 1946 witnessed establishing the first insurance agency in Jordan by Mr. Raouf Abu Jaber. (Jointly with Al Sharq Insurance Company - Egyptian co.) * During the sixties, the Jordanian market witnessed the birth of insurance companies. Middle East Insurance (MEIN) was first established with a capital of JD200 thousand, followed by The National Insurance (NAAI). The suspension for issuing new * In the mid 80 s, there were 33 companies in the market (23 local companies and 10 licenses lasted from the year 1987 until branches for foreign companies) totaling JD33 million in written premiums which led the year 1995 with certain conditions the sector to suffer losses due to the severe competition in such a shallow and new regarding the minimum capital required per each type of insurance market. As a result, the government issued the insurance practice monitoring act No. 30 for year 1984. Article 56 of the said act prohibited the issuance of new licenses for insurance companies. In addition, article 6/A imposed a minimum capital of JD600 thousand for insurance companies. This move aimed to force insurance companies to either merge or increase their capital, which indeed led to the decrease in the total number of insurance companies to 18. (17 Local companies and 1 foreign company) by the end of year 1987. * Currently, there are 28 insurance companies, employing 1,988 management and tech. staff, 614 Production staff in addition to 870 supplementary services insurance companies * The organizational structure for insurance market in Jordan consists of: Insurance Commission, Jordan Insurance Federation, Compulsory Unified Insurance Office, Insurance Companies, employees in the Insurance Sector in addition to supplementary services for Insurance Business. Jordan was recognized to be one of the * The insurance sector contributes 2.18% of the Jordanian (GDP), while the participation lowest countries spending on insurance of an individual s income paid on insurance does not exceed JD69.9 (USD98.7) (not exceeding JD69.9 (USD98.7) per capita annually. Furthermore, the share annually. This percentage is considered very low and doesn t comply with the income, of life insurances in 2011 amounted to culture and modernity that characterize the community. 9.4% of the total market compared to 50% in developed countries * After studying the Jordanian insurance market in detail through a systematic and scientific way using actuaries and risk analysis of the sector, the World Bank recommends the restructuring of compulsory insurance rate mandated by the government. Furthermore, the World Bank suggested allowing market dynamics such as demand and supply to determine prices. Following the World Bank s recommendation, the Insurance Commission granted companies the right to replace the JD92 price ceiling with demand-supply mechanisms which is expected to take effect during the first half of 2013. 4

Main Financial Indicators: As of June 2012 1- Total Assets: Total Assets have grown from JD498.43 million at the end of 2009 to reach JD568.07 million by the end of June 2012 with an average annual increase of 4.46% 580 560 540 Total Assets - in JD millions Average Increase 4.46% 520 500 480 460 2009 2010 2011 Q2-2012 2- Total Investments: Due to the decreased tendency to invest by the insurance companies, the sector s total investments reached JD327.3 million at the end of June 2012. 338 336 334 Total Investments - in JD millions Average decrease 0.85% 332 330 328 326 324 322 2009 2010 2011 Q2-2012 5

Retained losses and the negative changes in fair value led to further deterioration in shareholders equity 3- Capital and Shareholder s Equity: 270 Capital 260 250 Shareholder's Equiy 240 230 220 210 200 2009 2010 2011 Q2-2012 4- Total Written Premiums - Income Statement: There was a 12.24% increase in the total written premiums in the first 6 months of 2012 compared to the same period in 2011, thus reaching JD208.93 million relative to JD186.15 million 400 350 300 250 200 150 100 50 - Total Written Premiums - in JD millions 2009 2010 2011 Q2-2011 Q2-2012 The ratio of average net claims paid to total written premiums margin was recordd at 45.9% during the study period Net Claims Paid to T. Written Premiums Margin 48.30% 46.49% Average 45.91% 45.56% 44.86% 44.31% 2009 2010 2011 Q2-2011 Q2-2012 6

5- Capital Expenditures - Sectors CAPEX: 21.92 12.76 Capital Expenditures - CAPEX - JD million 9.55 5.70 5.53 2009 2010 2011 Q2-2011 Q2-2012 6- Jordanian Treasury Contribution: 8 6 4 2 N. Income (Total) vs. Taxes Paid - JD million Taxes Paid N. Income (Total) - (2) 2009 2010 2011 Q2-2011 Q2-2012 (4) (6) (8) 7- Cash Dividends through the Insurance Sector: Sector s companies paid JD26.87 million in favor of its shareholders from 2009 until the end of June 2012 7

8- Deposits of the Insurance Sector: 40% is the average deposits ratio to total investments during 2009 till the end of June 2012 140 135 Deposits at Banks - in JD millions 130 125 120 115 2009 2010 2011 Q2-2012 8

9 Sector Financial Statements: A- Balance Sheet*: مجموعة الاهلي للا سواق المالية والا ستثمارات Balance Sheet Q2-2012 2011 2010 2009 Assets Investments Deposits at Banks 129,390,200 126,031,144 138,976,004 135,630,921 Financial Assets at Fair Value Through Profit or Loss 37,591,288 39,107,199 - - Financial Assets at Fair Value Through OCI 57,063,215 61,319,509 3,600,656 3,871,631 Financial Assets at Amortized Cost 25,025,011 25,497,452 - - Financial Assets for Trading - - 21,716,062 24,833,264 Available for Sale Securities - - 77,060,685 85,349,891 Held to Maturity Investments - - 20,366,561 25,063,645 Investments in Subsidiaries & Associates 838,136 817,354 135,350 427,989 Property Investments 74,914,891 75,813,449 67,908,690 58,454,576 Loans 2,480,868 2,573,416 2,523,924 2,156,830 Other Investments - - - - Total Investments 327,303,609 331,159,523 332,287,932 335,788,747 Cash on Hand & at Banks 14,308,206 12,935,884 15,308,550 12,860,253 Receivable Notes & Post-Dated Cheques 21,276,512 18,923,595 15,885,311 12,673,375 Account Receivables - Net 104,084,711 92,729,744 81,367,584 72,122,048 Due from Other Reinsures 26,714,577 24,467,855 20,861,654 21,782,127 Deferred Tax Assets - DTA 10,097,628 9,321,474 5,810,259 4,498,965 Property & Equipment - Net 50,802,122 49,276,987 42,978,032 29,853,586 Intangible Assets 846,109 839,087 796,376 1,268,006 Other Assets 12,636,332 9,225,068 9,181,049 7,579,391 Total Assets 568,069,805 548,879,219 524,476,747 498,426,498 Liabilities & Shareholders Equity Liabilities Net Unearned Premium Provision 94,632,485 89,123,956 81,081,050 70,588,173 Net Outstanding Claims Provision 76,287,810 72,703,051 66,283,721 58,996,483 Net Mathematical Provision 26,020,983 24,135,314 16,935,193 14,924,443 Net Technical Provisions 260,898 590,005 650,000 650,000 Total Technical Provisions 197,202,176 186,552,326 164,949,964 145,159,099 Due to Banks 4,745,399 8,508,695 3,692,207 1,573,179 Short Term Borrowing 4,000,000 4,009,471 6,116,997 639,747 Account Payable 30,555,975 26,263,753 20,940,852 20,139,974 Accrued Expenses 756,712 787,184 2,263,821 1,951,259 Due to Other Reinsures 48,854,047 42,133,843 36,329,442 32,926,036 Provisions 3,407,846 3,222,546 3,303,608 3,455,765 Income Tax Provision 3,283,954 3,436,066 4,665,248 5,925,080 Long Term Borrowing 9,570,581 7,857,733 2,829,883 7,000,000 Deferred Tax Liabilities - DTL 237,175 310,431 1,078,329 521,615 Other Liabilities 22,539,491 19,995,480 16,171,909 16,047,037 Total Liabilities 325,153,356 303,077,528 262,342,260 235,338,791 Shareholders Equity Paid up Capital 229,475,000 228,250,000 226,250,000 220,450,000 Treasury Stocks (1,238,133) (1,238,133) (1,238,133) (1,238,133) Net Premium on Paid up Capital 3,054,728 3,054,728 4,554,728 4,635,857 Statutory Reserve 31,075,882 31,075,882 29,999,545 28,121,665 Voluntary Reserve 4,374,771 4,374,771 4,592,390 3,713,787 Other Reserves 3,013,359 3,262,876 1,461,429 1,950,590 Accumulated Change in Fair Value (11,110,088) (10,934,383) 4,674,139 6,411,421 Retained Earning (Accumulated Loss) (20,196,189) (16,332,291) (8,218,911) (2,044,167) Others - Period Earning 3,402,485 2,212,553 (1,309,685) (887,877) Total Shareholders Equity 241,851,815 243,726,004 260,765,502 261,113,143 Minority Interest 1,064,634 2,075,687 1,368,986 1,974,562 Total Shareholders Equity 242,916,449 245,801,691 262,134,488 263,087,705 Total Liabilities & Shareholders Equity 568,069,805 548,879,219 524,476,747 498,426,496 * Please refer to the items dictionary at the end of this report

B- Income Statement*: Income Statement Q2-2012 Q2-2011 2011 2010 2009 Revenues Total Written Premiums 208,933,421 186,146,434 361,612,364 333,335,362 296,523,710 Reinsurance Share 79,808,993 76,341,724 145,681,970 124,618,750 117,276,174 Net Written Premiums 129,124,428 109,804,710 215,930,394 208,716,612 179,247,536 Net Change in Unearned Premium Provision (12,582,533) (5,664,441) (4,357,231) (10,492,877) (7,216,112) Net Change in Mathematical Provision (1,980,492) (1,539,857) (3,563,378) (2,010,750) (1,691,409) Net Earned Premium Income 114,561,403 102,600,412 208,009,785 196,212,985 170,340,015 Commissions Received 11,257,270 10,336,682 19,769,309 17,576,474 17,219,696 Issuing Fees 8,631,693 6,744,393 13,338,903 12,255,857 11,812,112 Interest Revenues 3,098,547 2,888,780 5,971,798 6,366,149 8,455,280 Gain (Loss) from Financial Assets & Inv. 2,755,750 2,450,516 1,045,010 1,614,039 15,769 Other Revenues 1,524,572 2,387,903 3,524,317 3,414,032 4,510,770 Total Revenues 141,829,235 127,408,686 251,659,122 237,439,536 212,353,642 Claims Paid 148,230,714 129,638,872 273,956,392 221,290,977 205,768,123 Maturity & Surrender of Policies 1,020,257 796,882 1,618,975 1,418,322 1,662,878 Recoveries 13,775,383 12,683,439 25,905,616 21,749,470 21,370,400 Reinsurance Share 42,891,024 34,244,600 74,993,462 49,077,004 48,214,477 Net Claims Paid 92,584,564 83,507,715 174,676,289 151,882,825 137,846,124 Net Change in Outstanding Claims Provision 5,593,061 2,037,594 8,943,656 7,287,244 4,762,056 Allocated Administrative Expenses 20,261,830 19,035,731 38,190,371 35,618,523 33,303,041 Excess of Loss 2,262,485 2,319,407 4,361,257 3,559,479 3,423,166 Acquisition Policies Fees 7,781,062 7,189,780 14,287,298 13,762,532 12,621,928 Other Expenses 1,875,154 1,588,163 3,106,766 3,526,729 2,911,119 Underwriting Profit (Loss) 130,358,156 115,678,389 243,565,637 215,637,332 194,867,434 Employees Expenses 2,985,051 2,863,195 5,622,575 5,219,705 4,799,480 Depreciation 1,487,547 1,170,910 2,545,901 2,064,608 1,908,426 Administrative Expenses 1,622,210 1,527,588 3,074,463 2,898,987 2,893,979 Doubtful Debt Expenses 1,256,910 1,842,468 2,705,273 2,639,759 2,565,304 Doubtful Debt Expenses (Amortized Cost) 75,000 50,000 433,292 259,629 (9,639) Other Provisions 144,280 149,470 70,000 284,541 87,886 Impairment of Property & Equipment - (21,057) 197,474 (109,209) 222 Other Expenses 437,729 249,976 1,125,882 2,060,587 1,946,202 Total Expenses 8,008,727 7,832,550 15,774,860 15,318,606 14,191,860 Share of Profit of Subsidiaries & Associates 55,891 49,573 486,835 2,958,199 (188,692) Net Profit (Loss) Before Tax - EBIT 3,518,243 3,947,320 (7,194,540) 9,441,797 3,105,656 Tax Expense 1,345,088 1,697,527 (679,947) 2,514,707 3,404,759 Net Profit after Tax 2,173,155 2,249,793 (6,514,593) 6,927,090 (299,103) * Please refer to the items dictionary at the end of this report 10

C- Cash Flow Statement: Cash Flow Q2-2012 Q2-2011 2011 2010 2009 Earning Before Interest & Taxes - EBIT 4,244,436 3,292,996 (4,050,550) 6,200,319 2,361,793 Taxes Paid 2,318,648 3,242,638 3,449,041 4,373,962 6,764,352 Depreciation Expense 1,204,275 1,309,023 2,301,593 2,380,265 1,870,774 Cash Flow From Operating Activities 13,899,241 (6,812,648) 4,420,093 19,839,279 19,301,019 CAPEX (5,528,926) (5,702,128) (9,553,846) (21,919,259) (12,755,240) Cash Flow From Investing Activities (8,077,703) 7,080,295 (7,195,172) (7,607,143) (36,958,766) Cash Dividends (4,605,000) (7,004,387) (7,716,425) (5,247,116) (9,297,329) Cash Flow From Financing Activities (1,758,945) (4,217,754) (293,930) (4,165,381) (8,946,743) Net Change in Cash Item 4,062,593 (3,950,107) (3,069,009) 8,066,755 (26,604,490) 11

8 companies of our sample (21 companies) offer Aviation Insurance Underwriting P&L Account: A- Aviation: مجموعة الاهلي للا سواق المالية والا ستثمارات Income Statement - Aviation Direct Insurance 4,278,937 1,323,129 7,067,885 4,053,883 2,416,319 Reinsurance Accepted 7,236 248,710 (181,034) 641,923 77,421 Total Written Premiums 4,286,173 1,571,839 6,886,851 4,695,806 2,493,740 Local Reinsurance Share - - - - 74,936 Foreign Reinsurance Share 1,307,175 1,566,313 6,893,538 4,689,210 2,293,372 Net Written Premiums 2,978,998 5,526 (6,687) 6,596 125,432 Net Earned Premium Income (9,439) 3,049 (5,563) 83,898 87,261 Aviation Insurance is one of 2 types of insurance to consistently record losses during the past 3 years Net Claims Paid - - 37,342-125,767 Recoveries - - - - - Local Reinsurance Share - - - - - Foreign Reinsurance Share - - 37,342-125,767 Incurred - - 2,650 (7,400) (3,500) Commission Received 75,221 84,945 107,754 297,183 99,109 Issuing Fees 36,297 26,409 60,952 19,982 39,199 Total Revenues 99,546 111,575 156,743 390,989 215,213 Commission Paid - 12,405 830 1,138 2,350 Total Expenses 403,818 139,056 741,717 418,447 327,821 Underwriting Profit (Loss) (301,739) (24,653) (581,264) (9,984) (98,852) Written Premiums: By the end of June 2012, insurance companies accepted JD1.57million in aviation insurance premiums (reinsuring almost 100% of the amount) compared to JD4.29 million aviation insurance premiums recorded during the same period of 2011(reinsuring around 30.5% of the amount), resulting in JD2.98 million in net written premiums. Net Claims: Eight companies within the sample paid JD37.34 thousand by the end of 2011 with a net cost amounting to JD2.65 thousand, whereas JD125.77 thousand of net claims were paid by the end of 2009 with a negative net cost amounting to JD3.5 thousand. Commission and Issuing Fees Received: During the period of study, policies issuing fees reached 107.63% of total revenues by the end of 2011, compare to 81.12% recorded by the end of 2010. Commission and issuing fees received to total revenues ratio reached to 99.8% by June 2012 compared to 112.03% reached during the same period of 2011. Commission Paid: During the first half of 2012, 8 companies paid JD12.4 thousand (8.9% of total expenses), while commissions paid throughout year 2011 and 2010 reached JD830 paid and JD1.14 thousand respectively. Underwriting Profit: Throughout the study period, this type of underwriting topped JD581.26 thousand by end of year 2011 compared to JD10 thousand recorded by end of year 2010. 12

3 companies of our sample (21 companies) offer Credit Insurance B- Credit: Income Statement - Credit Direct Insurance 242,859 108,895 424,513 464,035 607,708 Reinsurance Accepted - - - - - Total Written Premiums 242,859 108,895 424,513 464,035 607,708 Local Reinsurance Share - - - - - Foreign Reinsurance Share 64,733 22,251 91,442 118,716 91,568 Net Written Premiums 178,126 86,644 333,071 345,319 516,140 Net Earned Premium Income 227,723 194,639 434,677 790,180 650,054 Net Claims Paid 463,210 471,781 911,112 2,093,502 926,168 Recoveries 524,189 405,592 830,749 449,632 198,168 Local Reinsurance Share - - - - - Foreign Reinsurance Share 51,203 32,143 133,745 592,576 223,445 Incurred 209,152 35,339 342,671 (66,151) 1,052,035 Commission Received 12,375 3,797 16,852 13,780 13,471 Issuing Fees 84,159 1,861 7,807 28,019 26,794 Total Revenues 401,860 164,200 484,257 432,863 44,015 Commission Paid - - - 126 449 Total Expenses 124,865 29,497 89,628 129,611 117,376 Underwriting Profit (Loss) 369,656 317,152 650,460 767,120 (50,869) During the period under study, credit insurance recorded the second lowest reinsurance rate lagging only behind motor insurance. This indicate the companies apatite towards this form of insurance Written Premiums: By the end of June 2012, insurance companies accepted JD109 thousand in credit insurance premiums (reinsuring JD22.3 thousand of the amount) compared to JD242.9 thousand (reinsuring JD64.7 thousand of the amount) recorded during the same period of 2011 which resulted in JD178.13 thousand in a net written premiums. Net Claims: Three companies within the sample paid JD471.8 thousand by the end of June 2012 with a net cost amounting to JD35.34 thousand, compared to JD463.21 thousands in net claims paid by the end of same period of 2011 with a cost of JD209.2 thousand. Commission and Issuing Fees Received: An average of JD35.57 thousand in commission and issuing fees received was recorded during 2009 to 2011 that contributed 35.41% of total revenues on average. Companies accepting this type of insurance received a commission and issuing fees amounting to JD5,658 during the first 6 months of 2012 (3.45% of total revenues) compared to JD96.53 thousands achieved during the same period of 2011 (24.02% of total revenues). Underwriting Profit: This type of underwriting resulted in a JD50.9 thousand loss during year 2009, yet achieved profits of JD767.1 and JD650.46 by the end of year 2010 and 2011 respectively. 13

20 companies of our sample (21 companies) offer Fire & Other Damage to Property Insurance C- Fire & Other Damage to Property: Income Statement - Fire & Other Damage to Property Direct Insurance 18,173,855 16,447,949 34,882,786 33,811,941 30,127,428 Reinsurance Accepted 5,085,899 4,302,826 8,769,094 9,525,666 9,419,631 Total Written Premiums 23,259,754 20,750,775 43,651,880 43,337,607 39,547,059 Local Reinsurance Share 5,739,699 3,821,921 9,290,421 8,929,054 9,695,056 Foreign Reinsurance Share 16,053,775 15,460,678 30,960,151 31,259,517 27,537,592 Net Written Premiums 1,466,280 1,468,176 3,401,308 3,149,036 2,314,411 Net Earned Premium Income 1,467,485 1,332,209 2,760,919 2,498,358 2,268,599 Net Claims Paid 6,554,274 4,311,149 17,093,238 8,227,916 9,829,493 Recoveries 156,580 61,087 312,169 608,489 352,353 Local Reinsurance Share 368,271 479,158 2,068,349 1,063,450 1,370,332 Foreign Reinsurance Share 5,785,223 3,449,895 13,840,499 6,680,619 7,693,319 Incurred 164,779 372,135 657,219 1,070,864 1,195,929 Commission Received 3,351,083 2,980,658 6,159,616 5,996,785 6,135,818 Issuing Fees 477,525 474,268 1,018,295 889,015 818,596 Total Revenues 4,786,571 4,424,830 9,124,212 8,205,786 7,999,367 Commission Paid 627,855 587,805 1,147,895 1,197,838 1,303,272 Total Expenses 3,325,456 3,040,987 6,656,497 6,438,107 6,105,134 Underwriting Profit (Loss) 1,923,396 1,686,215 2,837,743 2,101,148 2,242,970 The company s heavily depend on foreign reinsures due to large policy values and desire to diversify their portfolios Written Premiums: By the end of June 2012, insurance companies accepted JD20.75 million in fire insurance premiums (reinsuring JD19.28 million of the amount) compared to JD23.3 million (reinsuring JD21.8 million of the amount) recorded during the same period of 2011 which resulted in JD1.47 million in a net written premiums. Net Claims: Twenty companies within the sample paid JD4.31 million by the end of June 2012 with a net cost amounting to JD372 thousand compared to JD6.55 million in net claims paid by the end of the same period of 2011 with a cost of JD164.8 thousand. Commission and Issuing Fees Received: Commission and issuing fees received to total revenues ratio reached 78.1% by June 2012 compared to 80% recorded during the same period of 2011. During the period of study, policies issuing fees reached 78.7% of total revenues by the end of 2011, compare to 83.9% recorded by the end of 2010. Underwriting Profit: This type of underwriting resulted in a profit of JD2.84 million during year 2011 compared to JD2.10 million recorded by end of year 2010. 14

19 companies of our sample (21 companies) offer Civil Liability Insurance D- Civil Liability: Income Statement - Civil Liability Direct Insurance 2,235,373 3,004,379 4,310,932 4,607,209 6,996,452 Reinsurance Accepted 441,099 387,804 879,982 786,478 747,666 Total Written Premiums 2,676,472 3,392,183 5,190,914 5,393,687 7,744,118 Local Reinsurance Share 411,584 772,041 756,303 653,436 650,670 Foreign Reinsurance Share 1,574,108 1,522,798 3,313,659 3,596,749 5,797,346 Net Written Premiums 690,780 1,097,344 1,120,952 1,143,502 1,296,102 Net Earned Premium Income 627,136 513,262 1,147,433 1,088,356 1,496,669 Net Claims Paid 170,867 228,540 246,458 499,797 1,475,190 Recoveries 1,737 2,171 400 2,008 31,183 Local Reinsurance Share 781 31,568 1,688 51,443 6,319 Foreign Reinsurance Share 34,490 60,844 33,055 177,986 836,238 Incurred 145,178 121,704 243,016 306,016 751,201 Commission Received 353,253 366,971 547,341 590,246 714,765 Issuing Fees 171,770 134,036 235,136 285,492 302,444 Total Revenues 899,131 805,363 1,467,858 1,494,004 1,703,322 Commission Paid 65,756 75,177 81,053 84,310 217,651 Total Expenses 425,614 438,799 752,606 767,425 1,130,166 Underwriting Profit (Loss) 597,977 484,708 938,672 877,938 693,306 Written Premiums: By the end of June 2012, insurance companies accepted JD3.39 million in liability insurance premiums (reinsuring almost JD2.3 million of the amount) compared to JD2.68 million liability insurance premiums recorded during the same period of 2011(reinsuring around JD1.99 million of the amount), resulting in JD690.8 thousand in net written premiums. Net Claims: Nineteen companies within the sample paid JD228.5 thousand by the end of June 2012 with a net cost amounting to JD121.7 thousand compared to JD170.9 thousand in net claims paid by the end of the same period of 2011 with a cost of JD145.2 thousand. Commission Paid: With reference to commission paid, it was found that by the end of June 2012, 19 companies managed to pay JD75.2 thousand in commissions compared to JD65.8 thousand paid during the same period of 2011 which contributed to 16.29% on average of total expenses during the mentioned period. Underwriting Profit: This type of underwriting resulted in a profit of JD939.7 thousand during year 2011 compared to JD877.9 thousand recorded by end of year 2010. With regards to the 19 companies semi-annual financials, total net profit reached JD484.7 thousand by the end of June 2012 compared to JD598 thousand recorded during the same period of 2011. 15

16 companies of our sample (21 companies) offer Life Insurance E- Life: Income Statement - Life Direct Insurance 12,044,831 15,615,210 24,377,220 23,095,343 17,818,760 Reinsurance Accepted 1,207,518 865,555 2,036,739 2,637,506 5,294,913 Total Written Premiums 13,252,349 16,480,765 26,413,959 25,732,849 23,113,673 Local Reinsurance Share 727,866 810,437 1,925,656 1,713,905 3,576,481 Foreign Reinsurance Share 5,999,040 6,962,507 11,147,836 10,572,510 9,353,222 Net Written Premiums 6,525,443 8,707,821 13,340,467 13,446,434 10,183,970 Net Earned Premium Income 4,902,083 6,605,081 11,078,846 11,837,018 10,161,961 Net Claims Paid 6,326,552 7,076,295 7,995,238 13,693,216 15,611,812 Recoveries 6,824 240 7,324 53,343 8,570 Local Reinsurance Share 72,436 1,667 754,242 405,155 304,088 Foreign Reinsurance Share 4,545,538 5,196,266 8,846,595 8,526,467 7,021,098 Incurred 2,521,418 3,018,101 4,826,129 6,170,877 8,335,333 Commission Received 228,038 357,692 575,997 621,320 789,236 Issuing Fees 161,247 501,166 283,401 268,711 379,558 Total Revenues 2,309,143 3,713,565 6,172,390 5,792,118 6,549,862 Commission Paid 702,762 790,389 615,129 735,592 976,002 Total Expenses 2,225,603 3,301,959 5,238,730 5,012,274 4,015,299 Underwriting Profit (Loss) 1,464,885 1,965,278 3,410,584 2,924,633 2,801,334 According to the Insurance Commission, any company wishing to offer Ilfe Insurace should increase paid-up capital to JD10 million Written Premiums: By the end of June 2012, insurance companies accepted JD7.77 million in life insurance premiums (reinsuring almost 100% of the amount) compared to JD13.25 million life insurance premiums recorded during the same period of 2011(reinsuring around 50.8% of the amount), resulting in JD6.53 million in net written premiums. Net Claims: The majority of companies within the sample paid JD7.08 million by the end of June 2012 with a net cost amounting to JD3.02 million compared to JD6.33 million in net claims paid by the end of the same period of 2011 with a cost of JD2.52 million. Commission Paid: With reference to commission paid, it was found that by the end of June 2012, 16 companies managed to pay JD790.4 thousand in commissions compared to JD702.8 thousand paid during the same period of 2011 which contributed to 20% on average of total expenses during the mentioned period. Underwriting Profit: This type of underwriting resulted in a profit of JD3.41 million during year 2011 compared to JD2.93 million recorded by end of year 2010. With regards to the 16 companies semi-annual financials, total net profit reached JD1.97 million by the end of June 2012 compared to JD1.47 million recorded during the same period of 2011. 16

All of our sample (21 companies) offer Marine & Transportation Insurance F- Marine and Transportation: Income Statement - Marine and Transportation Direct Insurance 10,092,536 10,952,495 19,648,494 18,334,574 17,498,081 Reinsurance Accepted 983,976 1,869,925 2,170,161 1,467,328 1,574,200 Total Written Premiums 11,076,512 12,822,420 21,818,655 19,801,902 19,072,281 Local Reinsurance Share 688,334 1,047,160 1,388,661 1,019,982 656,189 Foreign Reinsurance Share 8,824,214 9,549,882 17,290,748 15,700,119 15,429,042 Net Written Premiums 1,563,964 2,225,378 3,139,246 3,081,801 2,987,050 Net Earned Premium Income 1,573,073 1,538,301 3,219,074 2,757,703 3,285,102 Net Claims Paid 2,609,264 7,918,905 4,406,749 3,896,912 5,919,155 Recoveries 97,534 65,553 125,602 227,791 220,189 Local Reinsurance Share 10,878 8,610 44,460 34,095 697,142 Foreign Reinsurance Share 2,164,839 7,538,303 3,458,003 3,006,587 4,259,514 Incurred 341,095 286,146 561,251 880,627 694,577 Commission Received 2,277,976 2,421,962 4,607,424 4,292,854 4,396,638 Issuing Fees 263,987 309,836 394,821 377,325 372,815 Total Revenues 3,739,663 4,370,950 7,461,881 6,720,269 7,303,515 Commission Paid 372,168 473,589 673,171 658,305 929,587 Total Expenses 1,792,479 1,977,346 3,627,567 3,566,906 3,650,716 Underwriting Profit (Loss) 2,261,059 2,668,612 4,380,115 3,497,378 4,257,553 As with Fire Insurance, companies prefer to reinsure a large portion of its premiums due to high concentration risks associated with large contracts Written Premiums: By the end of June 2012, insurance companies accepted JD12.8 million in marine and transportation insurance premiums (reinsuring almost JD10.6 million of the amount) compared to JD11.1 million marine and transportation insurance premiums recorded during the same period of 2011(reinsuring around JD9.51 million of the amount), resulting in JD1.56 million in net written premiums. Net Claims: The majority of companies within the sample paid JD7.08 million by the end of June 2012 with a net cost amounting to JD3.02 million compared to JD6.33 million in net claims paid by the end of the same period of 2011 with a cost of JD2.52 million. Moreover, the majority of the companies were able to transfer on average 84% of their net claims paid burden to either local or foreign reinsurers from 2009 until the end of June 2012. In terms of numbers, the majority of companies paid JD7.92 million in claims whereas JD7.54 million of which was covers by reinsurers (burden ratio of 95.3%) relative to JD2.61 million which was paid during the same period of 2011 whereby JD2.17 million of which was paid by reinsurers (burden ratio of 83.4%). Commission and Issuing Fees Received: Moving to the commission and issuing fees received, an average of 66.46% of total revenue was recorded between 2009 until the end of June 2012. Furthermore, the majority of the companies received JD2.73 million by the end of June 2012 compared to JD2.54 million received during the same period of 2011. Underwriting Profit: This underwriting achieved profits of JD2.67 million by the end of June 2012 compared to JD2.26 million recorded during the same period of 2011. 17

20 companies of our sample (21 companies) offer Medical Insurance G- Medical: Income Statement - Medical Direct Insurance 45,834,710 60,511,360 86,337,467 68,500,532 64,326,168 Reinsurance Accepted 540,253 426,747 1,021,275 629,461 571,339 Total Written Premiums 46,374,963 60,938,107 87,358,742 69,129,993 64,897,507 Local Reinsurance Share 734,987 445,760 1,257,000 624,881 591,280 Foreign Reinsurance Share 22,767,164 28,564,235 43,343,172 6,982,540 24,948,443 Net Written Premiums 22,872,812 31,928,112 42,758,570 41,522,572 39,357,784 Net Earned Premium Income 20,431,018 25,133,614 40,697,926 40,861,139 36,759,990 Net Claims Paid 4,864,399 4,965,023 73,820,097 58,572,291 52,038,147 Recoveries 578,314 568,323 1,379,852 993,097 830,852 Local Reinsurance Share 223,721 448,866 616,452 576,766 326,090 Foreign Reinsurance Share 16,654,473 21,571,593 36,251,926 21,018,422 18,290,574 Incurred 17,405,072 23,574,191 36,273,541 36,172,636 34,071,056 Commission Received 3,014,998 3,986,874 5,883,805 4,066,829 3,588,443 Issuing Fees 1,835,065 2,517,227 3,633,820 3,028,449 2,865,602 Total Revenues 7,299,460 7,650,398 12,786,187 9,864,995 8,387,417 Commission Paid 943,602 1,201,278 1,679,866 1,433,847 1,707,256 Total Expenses 6,230,612 7,647,885 11,355,998 9,774,124 8,902,999 Underwriting Profit (Loss) 1,783,941 511,363 2,827,902 2,369,146 790,078 Medical insurance is the second largest contributor to written premiums, only lagging behind motor insurance Written Premiums: By the end of June 2012, insurance companies accepted JD60.9 million in medical insurance premiums (reinsuring almost JD29 million of the amount) compared to JD46.4 million marine and transportation insurance premiums recorded during the same period of 2011(reinsuring around JD23.5 million of the amount), resulting in JD22.9 million in net written premiums. Net Claims: Twenty companies within the sample paid JD4.97 million by the end of June 2012 with a net cost amounting to JD23.4 million compared to JD4.86 million in net claims paid by the end of the same period of 2011 with a cost of JD17.4 million. This entails that reinsurers held the majority of net claims paid which valued JD22.02 million by the end of June 2012 compared to JD16.88 million paid by reinsurers during the same period of 2011. Underwriting Profit: The medical insurance companies achieved profits by the end of 2011 valued at JD2.83 million compared to JD2.37 million recorded by the end of 2010. As for the first 6 months of year 2012, the insurance sector s companies realized a profit of JD511.36 thousand compared to JD1.78 million generated during the same period of 2011. 18

All companies of our sample (21 companies) offer Motor Insurance H- Motor: Income Statement - Motor Direct Insurance 72,916,505 83,013,753 143,949,301 140,734,130 116,852,956 Reinsurance Accepted 6,675,277 4,485,722 15,435,707 12,919,138 11,243,985 Total Written Premiums 79,591,782 87,499,475 159,385,008 153,653,268 128,096,941 Local Reinsurance Share 4,933,982 3,944,210 10,076,318 9,778,074 8,027,348 Foreign Reinsurance Share 53,947 70,517 86,818 88,643 540,835 Net Written Premiums 74,603,853 83,484,748 149,221,872 143,786,551 119,528,758 While motor insurance has always negatively affected the sector s bottom line, all companies offer this type of insurance as mandated by the commission Net Earned Premium Income 70,533,473 77,739,105 135,324,559 138,543,559 115,817,736 Net Claims Paid 76,895,431 81,124,513 158,742,422 136,923,784 121,902,314 Recoveries 10,722,305 11,714,048 21,432,015 19,523,609 18,349,381 Local Reinsurance Share 2,417,898 2,086,207 4,805,170 4,300,867 3,061,050 Foreign Reinsurance Share 1,997,959 1,751,062 3,682,996 3,270,186 2,743,814 Incurred 63,944,810 71,202,811 139,245,415 115,037,238 99,433,538 Commission Received 149,612 100,730 282,201 375,381 519,959 Issuing Fees 2,942,338 3,915,453 6,372,215 6,140,139 5,655,000 Total Revenues 10,289,212 10,883,760 11,968,132 22,994,211 18,020,557 Commission Paid 3,808,014 4,227,702 6,616,006 6,282,011 6,787,998 Total Expenses 14,513,128 15,198,198 29,701,055 28,496,287 26,268,573 Underwriting Profit (Loss) (3,303,335) (3,882,670) (15,259,684) (791,785) (2,776,724) Written Premiums: By the end of June 2012, insurance companies accepted JD87.5 million in motor insurance premiums (reinsuring almost JD4 million of the amount) compared to JD79.6 million motor insurance premiums recorded during the same period of 2011(reinsuring around JD5 million of the amount), resulting in JD74.6 million in net written premiums. Net Claims: Twenty-one companies within the sample paid JD81.1 million by the end of June 2012 with a net cost amounting to JD71.2 million compared to JD76.9 million in net claims paid by the end of the same period of 2011 with a cost of JD63.9 million. Recoveries: This item refers to the recovered amounts from a third party (the causative party) given that the amounts recovered on all occasions will not exceed the net claim paid to the policyholder. In terms of numbers, total recovered amounts from third parties did not exceed (on average) 14.24% of total claims paid between 2009 until the end of June 2012. However, recovered amounts topped JD21.4 million out of JD158.7 million in claims during year 2011. Based on the World Bank s recommendation, the Insurance Commission approved the release of compulsory motor insurance rates in March 2012, effective by early 2013 based on supplydemand mechanism instead of the JD92 price ceiling imposed by the government per policy. 19

20 companies of our sample (21 companies) offer Other forms of Insurance I- Other Insurance: Income Statement - Other Direct Insurance 4,231,831 4,877,624 8,002,743 7,950,832 7,275,636 Reinsurance Accepted 705,698 425,498 924,655 2,081,211 1,335,652 Total Written Premiums 4,937,529 5,303,122 8,927,398 10,032,043 8,611,288 Local Reinsurance Share 412,075 615,479 1,053,539 1,428,233 812,794 Foreign Reinsurance Share 2,799,415 3,119,750 4,737,191 5,151,400 5,641,389 Net Written Premiums 1,726,039 1,567,893 3,136,668 3,452,410 2,157,105 Net Earned Premium Income 1,652,900 1,578,203 3,141,913 3,156,955 1,770,193 Net Claims Paid 1,234,048 1,012,196 2,258,764 2,112,746 2,395,786 Recoveries 5,806 862 5,146 7,416 15,444 Local Reinsurance Share 30,250 200,156 76,015 244,171 180,426 Foreign Reinsurance Share 323,391 124,092 678,942 909,624 1,805,671 Incurred 819,256 760,141 1,439,230 996,938 630,121 Commission Received 560,489 650,084 967,043 869,064 791,965 Issuing Fees 177,962 171,277 311,411 315,746 323,224 Total Revenues 1,409,792 1,597,978 2,602,601 2,451,693 1,932,458 Commission Paid 331,537 142,268 596,406 782,459 476,220 Total Expenses 1,009,721 775,371 1,847,764 2,152,357 1,509,593 Underwriting Profit (Loss) 589,074 912,760 1,220,856 1,177,223 751,102 Written Premiums: By the end of June 2012, insurance companies accepted JD5.3 million in other types of insurance premiums (reinsuring almost JD3.74 million of the amount) compared to JD4.94 million other types of insurance premiums recorded during the same period of 2011(reinsuring around JD3.21 million of the amount), resulting in JD1.73 million in net written premiums. Net Claims: Twenty companies within the sample paid JD1.01 million by the end of June 2012 with a net cost amounting to JD760.1 thousand compared to JD1.23 million in net claims paid by the end of the same period of 2011 with a cost of JD819.3 thousand. Commission and Issuing Fees Received: Regarding the commission and issuing fees received, 20 of the companies received JD821.4 thousand by the end of June 2012 compared to JD738.5 thousand received during the same period of 2011 which contributed to 51.9% on average of total revenues during the mentioned period. Underwriting Profit: The other types of insurance achieved profits by the end of 2011 valued at JD1.22 million compared to JD1.18 million recorded by the end of 2010. As for the first 6 months of year 2012, the insurance sector s companies realized a profit of JD912.8 thousand compared to JD59.1 thousand generated during the same period of 2011. 20

J- Total Underwritings: Income Statement - Total Underwritings Direct Insurance 170,051,437 195,854,794 329,001,341 301,552,479 263,919,508 Reinsurance Accepted 15,646,956 13,012,787 31,056,579 30,688,711 30,264,807 Total Written Premiums 185,698,393 208,867,581 360,057,920 332,241,190 294,184,315 Local Reinsurance Share 13,648,527 11,457,008 25,747,898 24,147,565 24,084,754 Foreign Reinsurance Share 59,443,571 66,838,931 117,864,555 98,159,404 91,632,809 Net Written Premiums 112,606,295 130,571,642 216,445,467 209,934,221 178,466,752 Net Earned Premium Income 101,405,452 114,637,463 197,799,784 201,617,166 172,297,565 Net Claims Paid 129,118,045 147,108,402 265,511,420 226,020,164 210,223,832 Recoveries 12,093,289 12,817,876 24,093,257 21,865,385 20,006,140 Local Reinsurance Share 3,124,235 3,256,232 8,366,376 6,675,947 5,945,447 Foreign Reinsurance Share 31,557,116 39,724,198 66,963,103 44,182,467 42,999,440 Incurred 85,550,760 99,370,568 183,591,122 160,561,645 146,160,290 Commission Received 10,023,045 10,953,713 19,148,033 17,123,442 17,049,404 Issuing Fees 6,150,350 8,051,533 12,317,858 11,352,878 10,783,232 Total Revenues 31,234,378 33,722,619 52,224,261 58,346,928 52,155,726 Commission Paid 6,851,694 7,510,613 11,410,356 11,175,626 12,400,785 Total Expenses 30,051,296 32,549,098 60,011,562 56,755,538 52,027,677 Underwriting Profit (Loss) 5,384,914 4,638,765 425,384 12,912,817 8,609,898 By the end of June 2012, insurance companies (based on the mentioned above aggregate P&L) accepted JD208.9 million for all types of insurance premiums (reinsuring almost JD78.3 million of the amount) compared to JD170.1 million other types of insurance premiums recorded during the same period of 2011(reinsuring around JD112.6 million of the amount), resulting in JD1.73 million in net written premiums. On average, 26.1% of total claims paid were covered by either local or foreign reinsurers between 2009 until the end of June 2012. 21

Sector Main Statistics 22

1- Per Underwriting Contribution: A- Aviation Contribution: مجموعة الاهلي للا سواق المالية والا ستثمارات Income Statement - Aviation Contribution Direct Insurance 2.52% 0.68% 2.15% 1.34% 0.92% Reinsurance Accepted 0.05% 1.91% -0.58% 2.09% 0.26% Total Written Premiums 2.31% 0.75% 1.91% 1.41% 0.85% Local Reinsurance Share 0.00% 0.00% 0.00% 0.00% 0.31% Foreign Reinsurance Share 2.20% 2.34% 5.85% 4.78% 2.50% Net Written Premiums 2.65% 0.00% 0.00% 0.00% 0.07% Net Earned Premium Income -0.01% 0.00% 0.00% 0.04% 0.05% Net Claims Paid 0.00% 0.00% 0.01% 0.00% 0.06% Recoveries 0.00% 0.00% 0.00% 0.00% 0.00% Local Reinsurance Share 0.00% 0.00% 0.00% 0.00% 0.00% Foreign Reinsurance Share 0.00% 0.00% 0.06% 0.00% 0.29% Incurred 0.00% 0.00% 0.00% 0.00% 0.00% Commission Received 0.75% 0.78% 0.56% 1.74% 0.58% Issuing Fees 0.59% 0.33% 0.49% 0.18% 0.36% Total Revenues 0.32% 0.33% 0.30% 0.67% 0.41% Commission Paid 0.00% 0.17% 0.01% 0.01% 0.02% Total Expenses 1.34% 0.43% 1.24% 0.74% 0.63% Underwriting Profit (Loss) -5.60% -0.53% -136.64% -0.08% -1.15% B- Credit Contribution: Income Statement - Credit Contribution Direct Insurance 0.14% 0.06% 0.13% 0.15% 0.23% Reinsurance Accepted 0.00% 0.00% 0.00% 0.00% 0.00% Total Written Premiums 0.13% 0.05% 0.12% 0.14% 0.21% Local Reinsurance Share 0.00% 0.00% 0.00% 0.00% 0.00% Foreign Reinsurance Share 0.11% 0.03% 0.08% 0.12% 0.10% Net Written Premiums 0.16% 0.07% 0.15% 0.16% 0.29% Net Earned Premium Income 0.22% 0.17% 0.22% 0.39% 0.38% Net Claims Paid 0.36% 0.32% 0.34% 0.93% 0.44% Recoveries 4.33% 3.16% 3.45% 2.06% 0.99% Local Reinsurance Share 0.00% 0.00% 0.00% 0.00% 0.00% Foreign Reinsurance Share 0.16% 0.08% 0.20% 1.34% 0.52% Incurred 0.24% 0.04% 0.19% -0.04% 0.72% Commission Received 0.12% 0.03% 0.09% 0.08% 0.08% Issuing Fees 1.37% 0.02% 0.06% 0.25% 0.25% Total Revenues 1.29% 0.49% 0.93% 0.74% 0.08% Commission Paid 0.00% 0.00% 0.00% 0.00% 0.00% Total Expenses 0.42% 0.09% 0.15% 0.23% 0.23% Underwriting Profit (Loss) 6.86% 6.84% 152.91% 5.94% -0.59% 23

C- Fire Contribution: مجموعة الاهلي للا سواق المالية والا ستثمارات Income Statement - Fire Contribution Direct Insurance 10.69% 8.40% 10.60% 11.21% 11.42% Reinsurance Accepted 32.50% 33.07% 28.24% 31.04% 31.12% Total Written Premiums 12.53% 9.93% 12.12% 13.04% 13.44% Local Reinsurance Share 42.05% 33.36% 36.08% 36.98% 40.25% Foreign Reinsurance Share 27.01% 23.13% 26.27% 31.85% 30.05% Net Written Premiums 1.30% 1.12% 1.57% 1.50% 1.30% Net Earned Premium Income 1.45% 1.16% 1.40% 1.24% 1.32% Net Claims Paid 5.08% 2.93% 6.44% 3.64% 4.68% Recoveries 1.29% 0.48% 1.30% 2.78% 1.76% Local Reinsurance Share 11.79% 14.72% 24.72% 15.93% 23.05% Foreign Reinsurance Share 18.33% 8.68% 20.67% 15.12% 17.89% Incurred 0.19% 0.37% 0.36% 0.67% 0.82% Commission Received 33.43% 27.21% 32.17% 35.02% 35.99% Issuing Fees 7.76% 5.89% 8.27% 7.83% 7.59% Total Revenues 15.32% 13.12% 17.47% 14.06% 15.34% Commission Paid 9.16% 7.83% 10.06% 10.72% 10.51% Total Expenses 11.07% 9.34% 11.09% 11.34% 11.73% Underwriting Profit (Loss) 35.72% 36.35% 667.10% 16.27% 26.05% D- Liability Contribution: Income Statement - Liability Contribution Direct Insurance 1.31% 1.53% 1.31% 1.53% 2.65% Reinsurance Accepted 2.82% 2.98% 2.83% 2.56% 2.47% Total Written Premiums 1.44% 1.62% 1.44% 1.62% 2.63% Local Reinsurance Share 3.02% 6.74% 2.94% 2.71% 2.70% Foreign Reinsurance Share 2.65% 2.28% 2.81% 3.66% 6.33% Net Written Premiums 0.61% 0.84% 0.52% 0.54% 0.73% Net Earned Premium Income 0.62% 0.45% 0.58% 0.54% 0.87% Net Claims Paid 0.13% 0.16% 0.09% 0.22% 0.70% Recoveries 0.01% 0.02% 0.00% 0.01% 0.16% Local Reinsurance Share 0.02% 0.97% 0.02% 0.77% 0.11% Foreign Reinsurance Share 0.11% 0.15% 0.05% 0.40% 1.94% Incurred 0.17% 0.12% 0.13% 0.19% 0.51% Commission Received 3.52% 3.35% 2.86% 3.45% 4.19% Issuing Fees 2.79% 1.66% 1.91% 2.51% 2.80% Total Revenues 2.88% 2.39% 2.81% 2.56% 3.27% Commission Paid 0.96% 1.00% 0.71% 0.75% 1.76% Total Expenses 1.42% 1.35% 1.25% 1.35% 2.17% Underwriting Profit (Loss) 11.10% 10.45% 220.66% 6.80% 8.05% 24

E- Life Contribution: Income Statement - Life Contribution مجموعة الاهلي للا سواق المالية والا ستثمارات Direct Insurance 7.08% 7.97% 7.41% 7.66% 6.75% Reinsurance Accepted 7.72% 6.65% 6.56% 8.59% 17.50% Total Written Premiums 7.14% 7.89% 7.34% 7.75% 7.86% Local Reinsurance Share 5.33% 7.07% 7.48% 7.10% 14.85% Foreign Reinsurance Share 10.09% 10.42% 9.46% 10.77% 10.21% Net Written Premiums 5.79% 6.67% 6.16% 6.41% 5.71% Net Earned Premium Income 4.83% 5.76% 5.60% 5.87% 5.90% Net Claims Paid 4.90% 4.81% 3.01% 6.06% 7.43% Recoveries 0.06% 0.00% 0.03% 0.24% 0.04% Local Reinsurance Share 2.32% 0.05% 9.02% 6.07% 5.11% Foreign Reinsurance Share 14.40% 13.08% 13.21% 19.30% 16.33% Incurred 2.95% 3.04% 2.63% 3.84% 5.70% Commission Received 2.28% 3.27% 3.01% 3.63% 4.63% Issuing Fees 2.62% 6.22% 2.30% 2.37% 3.52% Total Revenues 7.39% 11.01% 11.82% 9.93% 12.56% Commission Paid 10.26% 10.52% 5.39% 6.58% 7.87% Total Expenses 7.41% 10.14% 8.73% 8.83% 7.72% Underwriting Profit (Loss) 27.20% 42.37% 801.77% 22.65% 32.54% F- Marine and Transportation Contribution: Income Statement - Marine and Transportation Contribution Direct Insurance 5.93% 5.59% 5.97% 6.08% 6.63% Reinsurance Accepted 6.29% 14.37% 6.99% 4.78% 5.20% Total Written Premiums 5.96% 6.14% 6.06% 5.96% 6.48% Local Reinsurance Share 5.04% 9.14% 5.39% 4.22% 2.72% Foreign Reinsurance Share 14.84% 14.29% 14.67% 15.99% 16.84% Net Written Premiums 1.39% 1.70% 1.45% 1.47% 1.67% Net Earned Premium Income 1.55% 1.34% 1.63% 1.37% 1.91% Net Claims Paid 2.02% 5.38% 1.66% 1.72% 2.82% Recoveries 0.81% 0.51% 0.52% 1.04% 1.10% Local Reinsurance Share 0.35% 0.26% 0.53% 0.51% 11.73% Foreign Reinsurance Share 6.86% 18.98% 5.16% 6.80% 9.91% Incurred 0.40% 0.29% 0.31% 0.55% 0.48% Commission Received 22.73% 22.11% 24.06% 25.07% 25.79% Issuing Fees 4.29% 3.85% 3.21% 3.32% 3.46% Total Revenues 11.97% 12.96% 14.29% 11.52% 14.00% Commission Paid 5.43% 6.31% 5.90% 5.89% 7.50% Total Expenses 5.96% 6.07% 6.04% 6.28% 7.02% Underwriting Profit (Loss) 41.99% 57.53% 1029.68% 27.08% 49.45% 25

G- Medical Contribution: Income Statement - Medical Contribution مجموعة الاهلي للا سواق المالية والا ستثمارات Direct Insurance 26.95% 30.90% 26.24% 22.72% 24.37% Reinsurance Accepted 3.45% 3.28% 3.29% 2.05% 1.89% Total Written Premiums 24.97% 29.18% 24.26% 20.81% 22.06% Local Reinsurance Share 5.39% 3.89% 4.88% 2.59% 2.45% Foreign Reinsurance Share 38.30% 42.74% 36.77% 27.49% 27.23% Net Written Premiums 20.31% 24.45% 19.75% 19.78% 22.05% Net Earned Premium Income 20.15% 21.92% 20.58% 20.27% 21.34% Net Claims Paid 27.00% 30.57% 27.80% 25.91% 24.75% Recoveries 4.78% 4.43% 5.73% 4.54% 4.15% Local Reinsurance Share 7.16% 13.78% 7.37% 8.64% 5.48% Foreign Reinsurance Share 52.78% 54.30% 54.14% 47.57% 42.54% Incurred 20.34% 23.72% 19.76% 22.53% 23.31% Commission Received 30.08% 36.40% 30.73% 23.75% 21.05% Issuing Fees 29.84% 31.26% 29.50% 26.68% 26.57% Total Revenues 23.37% 22.69% 24.48% 16.91% 16.08% Commission Paid 13.77% 15.99% 14.72% 12.83% 13.77% Total Expenses 20.73% 23.50% 18.92% 17.22% 17.11% Underwriting Profit (Loss) 33.13% 11.02% 664.79% 18.35% 9.18% H- Motor Contribution: Income Statement - Motor Contribution Direct Insurance 42.88% 42.39% 43.75% 46.67% 44.28% Reinsurance Accepted 42.66% 34.47% 49.70% 42.10% 37.15% Total Written Premiums 42.86% 41.89% 44.27% 46.25% 43.54% Local Reinsurance Share 36.15% 34.43% 39.13% 40.49% 33.33% Foreign Reinsurance Share 0.09% 0.11% 0.07% 0.09% 0.59% Net Written Premiums 66.25% 63.94% 68.94% 68.49% 66.98% Net Earned Premium Income 69.56% 67.81% 68.41% 68.72% 67.22% Net Claims Paid 59.55% 55.15% 59.79% 60.58% 57.99% Recoveries 88.66% 91.39% 88.95% 89.29% 91.72% Local Reinsurance Share 77.39% 64.07% 57.43% 64.42% 51.49% Foreign Reinsurance Share 6.33% 4.41% 5.50% 7.40% 6.38% Incurred 74.74% 71.65% 75.85% 71.65% 68.03% Commission Received 1.49% 0.92% 1.47% 2.19% 3.05% Issuing Fees 47.84% 48.63% 51.73% 54.08% 52.44% Total Revenues 32.94% 32.27% 22.92% 39.41% 34.55% Commission Paid 55.58% 56.29% 57.98% 56.21% 54.74% Total Expenses 48.29% 46.69% 49.49% 50.21% 50.49% Underwriting Profit (Loss) -61.34% -83.70% -3587.27% -6.13% -32.25% 26

I- Other Insurance Contribution: Income Statement - Other Insurance Contribution Direct Insurance 2.49% 2.49% 2.43% 2.64% 2.76% Reinsurance Accepted 4.51% 3.27% 2.98% 6.78% 4.41% Total Written Premiums 2.66% 2.54% 2.48% 3.02% 2.93% Local Reinsurance Share 3.02% 5.37% 4.09% 5.91% 3.37% Foreign Reinsurance Share 4.71% 4.67% 4.02% 5.25% 6.16% Net Written Premiums 1.53% 1.20% 1.45% 1.64% 1.21% Net Earned Premium Income 1.63% 1.38% 1.59% 1.57% 1.03% Net Claims Paid 0.96% 0.69% 0.85% 0.93% 1.14% Recoveries 0.05% 0.01% 0.02% 0.03% 0.08% Local Reinsurance Share 0.97% 6.15% 0.91% 3.66% 3.03% Foreign Reinsurance Share 1.02% 0.31% 1.01% 2.06% 4.20% Incurred 0.96% 0.76% 0.78% 0.62% 0.43% Commission Received 5.59% 5.93% 5.05% 5.08% 4.65% Issuing Fees 2.89% 2.13% 2.53% 2.78% 3.00% Total Revenues 4.51% 4.74% 4.98% 4.20% 3.71% Commission Paid 4.84% 1.89% 5.23% 7.00% 3.84% Total Expenses 3.36% 2.38% 3.08% 3.79% 2.90% Underwriting Profit (Loss) 10.94% 19.68% 287.00% 9.12% 8.72% 27