54th annual report - jordan insurance company e 2005.pdf · the company started a comprehensive...

S

af

e

j ou

rn

ey

o

n

t he

b

oa

t o

f

l if

e

54th

AnnualReport 2 0 0 5

Contact us:

Head OfficeAmman – 3rd CircleP.O.Box 279 Amman 11118 JordanTel.: 962 6 4634161Fax: 962 6 4637905E-mail: [email protected]

Madina BranchTel.: 962 6 4638107Fax: 962 6 4646917E-mail: [email protected]

Our Branches:United Arab EmiratesAbu Dhabi: 971 2 6344800 Fax: 6330495Dubai: 971 4 2698810 Fax: 2692174 Sharja: 971 6 5395566 Fax: 5395556

Saudi ArabiaRiyadh: 966 1 4768404 Fax: 4769337Jeddah: 966 2 6423212 Fax: 6433605Khobar: 966 3 8644314 Fax: 8948922

KuwaitKuwait: 965 2 454160 Fax: 454180

:ÉæH ∫É°üJÓd

:»°ù«FôdG ô≤ŸG ¿ÉªY – ådÉãdG QGhódG

¿OQC’G ١١١١٨ ¿ÉªY ٢٧٩ Ü . ¢U ٤٦٣٤١٦١ ٦ ٩٦٢ :∞JÉg٤٦٣٧٩٠٥ ٦ ٩٦٢ :¢ùcÉa

[email protected] :ÊhÎµdE’G ójÈdGwww.jicjo.com :ÊhÎµdE’G ™bƒŸG

:áæjóŸG ´ôa٤٦٣٨١٠٧ ٦ ٩٦٢ :∞JÉg٤٦٤٦٩١٧ ٦ ٩٦٢ :¢ùcÉa

[email protected] :ÊhÎµdE’G ójÈdG

ÉæYhôaIóëàŸG á«Hô©dG äGQÉeE’G

٦٣٣٠٤٩٥ :¢ùcÉa ٦٣٤٤٨٠٠ ٢ ٩٧١ :»ÑXƒHCG٢٦٩٢١٧٤ :¢ùcÉa ٢٦٩٨٨١٠ ٤ ٩٧١ :»````````````````HO٥٣٩٥٥٥٦ : ¢ùcÉa ٥٣٩٥٥٦٦ ٦ ٩٧١ :ábQÉ°ûdG

ájOƒ©°ùdG á«Hô©dG áµ∏ªŸG٤٧٦٩٣٣٧ :¢ùcÉa ٤٧٦٨٤٠٤ ١ ٩٦٦ :¢VÉjôdG٦٤٣٣٦٠٥ :¢ùcÉa ٦٤٢٣٢١٢ ٢ ٩٦٦ :Ió```````````````L٨٩٤٨٩٢٢ :¢ùcÉa ٨٦٤٤٣١٤ ٣ ٩٦٦ :ô`````Ñ````ÿG

âjƒµdG٤٥٤١٨٠ :¢ùcÉa ٤٥٤١٦٠ ٢ ٩٦٥ :â````jƒµdG

Amman

Jeddah

Riyadh

Dubai

Abu Dhabi

Sharja

Khobar

Kuwait

His Majesty King Abdullah

Bin Al-Hussein II

Mr. Khaldun A. Abuhassan Mr. Khaldun A. Abuhassan (Representing Al-Mashreq Development & Marketing Co.) (Representing Al-Mashreq Development & Marketing Co.)

Mr. Othman M. Bdair Mr. Othman M. Bdair (Representing Arab Technical Constructions Co.) (Representing Arab Technical Constructions Co.)

Mr. Zuhair Sh. Asfour Mr. Zuhair Sh. Asfour

Mr. Osama J. Sha’sha’aMr. Osama J. Sha’sha’a

Mr. Karl Wittman Mr. Karl Wittman (Representing Munich Re Co.)(Representing Munich Re Co.)

Mr. Shehadeh Sh. Twal Mr. Shehadeh Sh. Twal

Dr. Mohammad Gh. Mesmar Dr. Mohammad Gh. Mesmar (Representing Arab Bank)(Representing Arab Bank)

Mr. Ghassan A. Al-Dhamen until 2/5/2005Mr. Ghassan A. Al-Dhamen until 2/5/2005Mr. Kamal Gh. Al-Bakri since 3/5/2005 Mr. Kamal Gh. Al-Bakri since 3/5/2005 (Representing Al-Maseera Investment Co.)(Representing Al-Maseera Investment Co.)

Mr. Samih Madi Mr. Samih Madi

Mrs. Huda Bdair Mrs. Huda Bdair

Late Mr. Mosa’ab Khorma until 9/11/2005Late Mr. Mosa’ab Khorma until 9/11/2005Mr. Mohammed M. Ennab since 6/12/2005Mr. Mohammed M. Ennab since 6/12/2005(Representing Arab Supply & Trading Co.)(Representing Arab Supply & Trading Co.)

ChairmanChairman

Deputy ChairmanDeputy Chairman

DirectorDirector

DirectorDirector

DirectorDirector

DirectorDirector

DirectorDirector

DirectorDirector

DirectorDirector

DirectorDirector

DirectorDirector

Board of Directors

¿ƒ«fƒfÉ≤dG ¿ƒÑ°SÉëŸG ¿ƒ«fƒfÉ≤dG ¿ƒÑ°SÉëŸG(§°ShC’G ¥ô°ûdG) ¢TƒJ ófBG âjƒ∏jO IOÉ°ùdG(§°ShC’G ¥ô°ûdG) ¢TƒJ ófBG âjƒ∏jO IOÉ°ùdG

ΩÉ©dG ôjóŸG ÖFÉfΩÉ©dG ôjóŸG ÖFÉf 20052005/7/4 øe kGQÉÑàYG/QƒÑMO óªfi ≈Ø£°üe øe kGQÉÑàYG/QƒÑMO óªfi ≈Ø£°üe

ΩÉ©dG ôjóŸG ΩÉ©dG ôjóŸG 20052005/2/1 øe kGQÉÑàYG/≥dÉÿG óÑY óªfi OÉªY øe kGQÉÑàYG/≥dÉÿG óÑY óªfi OÉªY

16

09

17-18

19

20

21

29

Board of Directors’ Report

Auditors’ Report

General Balance Statement

Statement of Income

Statement of Changes in Shareholders Equity

Statement of Cash Flow

Financial Report

Board of Directors’Report 2005

9

Dear Shareholders

Your Company maintained its leadership and excellence in as far as the results of its work are concerned. Technical profit this year reached 2.1 million Dinars, compared with 2.8 million Dinars last year. This profit was the result of paid-up insurance installments of 22.3 million Dinars this year compared with 19.5 million Dinars last year, an increase of 2.8 million Dinars.

The Insurance Commission had a positive impact on the insurance industry in Jordan through its monitoring role, spreading insurance related awareness, and issuing instructions designed to develop this sector. It also conducted seminars and training courses to qualify cadres and provide the insurance sector with skills capable of advancing and keeping up with developments in the insurance industry in Jordan.

During 2005, the Company applied the General Assembly’s recommendation of raising the capital by 10 million Dinars through capitalizing reserves and carried-over profits, making the capital 20 million Dinars. In doing so, it pre-empted the Insurance Commission’s move to raise the capitals of insurance companies in Jordan and any anticipated requirements to raise the capital in countries where your Company works or intends to work. To complement the above and in line with the Company’s strategy to increase its capital to the point that would strengthen its financial standing and enhance its ability to maintain that which strengthens confidence in it and preserve it as one of the national and Arab pillar of economy, the Board of Directors recommends to the General Assembly to increase the capital to 30 million Dinars by distributing half a share free of charge to shareholders after acquiring the approval of the official parties.

Last year, the Company completed licensing procedures for its branch in Kuwait so that it again functions through a local agent there, and results have so far been encouraging. The Company also continued to finalize procedures for establishing a cooperative insurance company in the Kingdom of Saudi Arabia through Saudi and Arab partners. The process is currently in its final stages and we hope to finalize launching procedures in mid 2006.

Dear Shareholders

The Company’s strategy for 2006 is focused on selective and professional production in order to achieve technical results that reflect the Company’s growth and its capital increase. It is a policy that the Company has adopted and maintained since its inception, all the while making sure its clients are sincerely and reliably served.


In the Name of God, The Most Gracious, The Most Merciful

Dear Shareholders,

Peace be upon you

The Board of Directors is pleased to welcome you to the fifty-fourth ordinary meeting of the General Assembly and to present to you the general budget and the financial statements of the Financial Year that concluded on 31/12/2005. The Board is also pleased to present to you the Company’s achievements on the local and Arab levels, despite what accompanied them in terms of the instability that prevailed in the region, as a result of the fledgling settlement process in Palestine, where our kinfolk continue to suffer from losses of lives and property, and as a result of developments that continue to storm in Iraq and their consequent security, humanitarian and economic repercussions that eat away at the very foundations of that country, not to mention the blood-letting events in Lebanon that absented the innovative and extraordinary economist, the martyr Rafik Al-Hariri, and the subsequent political and economic pressures on brotherly Syria, which we hope will end and will not have any negative impact on the status quo in the region.

Jordan itself did not survive the repercussions of this instability as malicious hands turned onto some of our institutions with the aim of weakening the security and economic stability that characterize our country, but for the wisdom of the leadership and the alertness of the Jordanian people in the face of these incidents, which prevented the enemies of the nation from harming the steadfastness and stability of this country. And so the economic process continued successfully, confidently and with excellence, and this was evident from the growth of most of the sectors in general and the real estate sector in particular. Most companies achieved comparable profits this year, which had the largest impact on the rise of share prices at the Amman Stock Exchange accompanied by active trading that attracted Arab and foreign capitals, thus constituting a qualitative addition to the diversity of investments and investors’ mentality. The Jordanian economy this year achieved a growth rate of more than 6%.

The Company interacted positively with the exceptional activity at the Amman Stock Exchange. The financial market’s index for this year reached 8192 points compared with 4246 points in 2004, thus rendering your Company a paid profit of 21.1 million Dinars as opposed to 8.3 million Dinars last year. We hope that this momentum will continue in 2006, although there are indications of a recession in most financial markets in the region. The Company’s portfolio of stocks and bonds was approximately 49 million Dinars by the end of 2005 compared with 19.9 million Dinars in 2004. Moreover, the net value of real estate investments reached 7.5 million Dinars as opposed to 5.5 million Dinars in 2004.

The Company started a comprehensive marketing campaign designed to spread insurance related awareness and introduce the exceptional insurance services provided by your Company, and this had a positive impact on the Company’s productivity and reputation. The campaign will continue, God willing, and we hope it will yield good results for the Company and its future.

Future Plan

Continuing the implementation of the Company’s work plan to achieve the future goals that have been set in past years and to keep up with any developments in the insurance industry, the work plan for the year 2006 focuses on the following:1. Continuing to advance the staff and develop the skills of the workforce by:

• Raising the efficiency level of employees and developing their skills through training programs and domestic and foreign courses.• Attracting educationally and technically qualified skills.• Restructuring the various departments and divisions.

2. Following up on the update of computer programs and linking external branches automatically with headquarters.3. Continuing the search for new and profitable markets.4. Diversifying the Company’s financial investments in terms of tools and markets.5. Expanding in real estate investments.6. Continuing and developing the Company’s marketing campaign.7. Continuing efforts aimed at providing ‘bancassurance’ services with a number of local banks. 8. Branches and branching out:

• Restructuring external branches in the United Arab Emirates.• Supporting branches and equipping them with qualified technical staff.

Finally, the Board of Directors wishes to express its appreciation to the Company’s clients for their continued confidence and support, and to the Company’s employees and agents for their loyalty in the service of its goals.

We ask God Almighty for success and achievement in serving our national and Arab economy under the leadership and directives of His Majesty King Abdullah II Bin Al-Hussein and the continued support of his wise government towards encouraging investments, economic development and prosperity.

The Board of Directors

1010

2005 2004 2003 2002

Income Statement Information

Gross written premium

Net earned premium

Investment result

Other revenue

Total revenue

Net claims paid

Other expenses

Total expenses

Result before taxes

Net result after tax

22.344.976

13.401.687

21.104.844

2.033.032

36.539.563

8.560.898

5.307.185

13.868.083

22.671.479

19.092.149

19.538.808

12.216.624

8.520.703

1.986.236

22.723.563

7.190.609

4.621.550

11.812.159

10.911.408

9.379.142

17.483.857

11.439.146

1.517.178

1.768.398

14.724.722

7.341.596

4.002.645

11.344.241

3.380.482

2.515.299

16.318.673

9.419.745

617.283

2.098.516

12.135.544

6.894.062

3.927.162

10.821.224

1.314.320

885.534

11

Gross Premium

JD M

illio

ns

Claims Paid

2002

5

10

15

20

25

200320042005

2002 2003 2004 2002

Balance Sheet Information

Real Estate

Financial

Others

Investment

Total Assets

Shareholder’s Equity

6.072.494

15.009.246

239.665

21.321.405

27.602.589

13.714.364

5.982.251

19.427.495

128.546

25.538.292

33.468.113

18.517.895

5.543.965

25.134.506

62.054

30.740.525

40.902.091

24.433.183

7.529.438

52.649.824

88.495

60.267.757

72.456.047

43.175.050


2002

5

10

15

20

25

2003 2004 2005

JD M

illio

ns

Net Income Before Tax

JD M

illio

ns

Capital Growth

1952 1962 1982 1987 2001 2005

5

10

15

20

1212

Financial ReportYear ended

31/12/2005

1515

Financial Report

Auditor’s Report

AM/7953

To the General Assembly of ShareholdersJordan Insurance CompanyAmman – Jordan

We have audited the accompanying balance sheets of Jordan Insurance Company (a public limited shareholding company) as of December 31, 2005 and the related statements of income, changes in shareholders’ equity, and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We have obtained the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit.

We conducted our audit in accordance with the International Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Jordan Insurance Company as of December 31, 2005 and the results of its operations and its cash flows for the year then ended, in conformity with the accounting policies stated in footnote (2) to the financial statements, and we recommend that the General Assembly of Shareholders approve these financial statements.

The Company maintains proper accounting records, and the accompanying financial statements are in agreement therewith.

Amman – Jordan January 29, 2006 Deloitte & Touche (M.E.) – Jordan

1616

1717

Financial Report

31st December

JD

2005 2004

JD

2.060.640

515.481

6.811.846

1.042.072

3.656.285

1.272.065

46.053.974

1.677.500

88.495

7.529.438

60.277.757

728.708

1.019.543

72.456.047

3

4

5

6

7

8

9

10

11

12

13

14

2.442.144

499.701

4.883.413

937.564

5.271.118

292.398

17.847.510

1.723.480

62.054

5.543.965

30.740.525

482.963

915.781

40.902.091

Note

Number

Cash on hand and at banks

Checks under collection and notes receivable

Accounts receivable - net

Insurance companies accounts - debit

Investments

Deposits at banks

Trading investments

Investments available for sale

Investments held to maturity

Loans and advances of the Life Department

Property investments

Total investments

Other assets - net

Fixed assets - net

Total assets

Assets

General Balance Statement

1818

31st December

JD

2005 2004

JD

8.353.605

1.271.403

2.836.680

4.999.462

501.528

5.559.335

4.229.095

1.274.889

255.000

11.318.319

20.000.000

5.289.539

3.400.000

1.051.490

2.500.000

10.934.021

43.175.050

72.456.047

15

16

17

18

19

20

27

21

852.062

2.056.810

2.476.747

471.059

5.186.962

3.561.061

1.364.207

500.000

10.612.230

10.000.000

3.022.390

1.140.529

801.772

600.000

8.868.492

24.433.183

40.902.091

Note

Number

Due to Bank

Accounts payable

Insurance companies accounts - credit

Other provisions

Other liabilities

Technical Provisions

Unearned premiums provision - net

Outstanding claims provision - net

Accumulated mathematical reserve - net

Other technical provision

Total technical provision

Shareholders’ Equity Authorized and paid-up capital

Statutory reserve

Voluntary reserve

Cumulative change in fair value

Proposed dividends

Retained earnings

Total shareholders’ equity

Total liabilities and shareholders’ equity

Liabilities

1919

Financial Report

Statment of Income for the Year Ended

31st December

JD

2005 2004

JD

Note

Number

22

23

24

25

935.702

501.337

96.744

-25.702

91.965

251.495

293.999

2.145.540

128.127

21.104.844

116.235

23.494.745

332.396

179.916

146.503

135.501

28.950

22.671.478

2.875.000

223.844

223.844

47.500

209.142

19.092.148

1.400.995

464.649

433.931

26.222

63.825

206.766

226.451

2.822.838

115.237

8.520.703

51.578

11.510356

26.106

196.000

176.021

147.681

28.750

10.935.798

1.200.000

100.559

100.559

40.000

91.148

9.403.532

Underwriting Profit (Loss)Motor Department

Marine Department

Fire Department

Liability

Other Classes

Medical Department

Life Department

Total Underwriting Profit (loss) AdInterests revenue

Income from financial assest and investments - net

Other revenues

Total Revenues Deduct

Unallocated administrative and general expenses

Provision for doubtful debts

Depreciation expense

Provision for end-of-service indemnity

Amotization

Net Income Before Income Tax and feesDeductProvision for income tax

Jordan universities fees

Scientific research and vocational training fees

Board of Directors’ remuneration

Provision for vocational and technical training fund

Profit After Tax and Fees

2020

Jordan Insurance Com

panyA

Public Shareholding Com

panyA

mm

an - Jordan

Note

Num

ber

2121

1.140.529

(1.140.529)

----

3.400.000

3.400.000

1.140.529

----

1.140.529

801.772

---

249.718

--

1.051.490

2.465.626

-

(1.663.854)

--

801.772

600.000

-

2.500.000

(600.000)

---

2.500.000

1.800.000

(1.800.000)

--

600.000

600.000

8.868.492

(8.859.471)

(2.500.000)

--

19.092.149

(5.667.149)

10.934.021

89.350

--

9.379.142

(600.000)

8.868.492

24.433.183

--

(600.000)

249.718

19.092.149

-

43.175.050

18.517.895

(1.800.000)

(1.663.854)

9.379.142

-

24.433.183

10.000.000

10.000.000

-----

20.000.000

10.000.000

----

10.000.000

3.022.390

-----

2.267.149

5.289.539

3.022.390

----

3.022.390

Authorized and

Paid-up Capital

Statutory

Reserve

Voluntary

Reserve

Cum

ulativechange in Fair

Value

Proposed

Dividends

Retained

EarningsTotal

Yea

r 2005

Balance - beginning of the year

Increase in capital

Proposed dividends

Dividends paid

Cum

ulative change in fair value

Net Incom

e for the year

Appropriated from profit to reserves

Balance - end of the year

Yea

r 2004

Balane - beginning of the year

Dividends paid

Cum

ulative change in fair value

Net Incom

e for the year

Proposed dividends

Balance - end of the year

JDJD

JDJD

JDJD

JD

Consolidated Statements of Changes in Shareholders Equity

21

Financial Report

Statement of Cash Flows

For the Year Ended December 31st

JD

2005 2004

JDCash Flows from Operating Activities:Net income before income tax fees

Adjustment

Depreciation

Amortization expenses

Doubtful debts provision

Provision for staff end - of - service indemnity

Change in fair value for trading investment

Outstanding claims provision

Technical Provision

Net Income Before Changes in Working Capital

(Increase) decrease in current assets

Checks under collection and notes receivable

Accounts receivable

Insurance companies accounts

Trading investments

Other assets

Increase (decrease) in current libilities

Accounts payable

Insurance companies accounts

(Decrease) in various provision

Other liabilities

Net cash flows from operating activities before tax

Income tax paid

Staff end-of-service indemnity paid

Amount paid from the scientific research end technical training fund reserve

Board of Directors’ remuneration paid

Net cash flows from operating activities

Cash Flows from Investing ActivitiesDeposits at banks

Investments available for sale

Investments held to maturity

loans of the Life Department

Property investments

Fixed assets - net

Net cash flows (used in) investing activities

Cash Flows from Financing ActivitiesDividends paid

Due to banks

Net cash flows (used in) financing activities

Net increase (decrease) in cash

Cash on hand and at banks - beginnig of the year

Cash on hand and at banks - end of the year

22.671.479

146.503

28.950

179.918

135.501

58.090

668.034

38.055

23.926.530

(15.780)

(2.108.351)

(104.508)

(1.037.757)

(274.695)

419.341

779.870

16.178

22.969

21.623.797

(1.004.788)

(29.939)

(126.067)

(40.000)

20.423.003

1.614.833

(27.956.746)

45.980

(26.441)

(1.985.473)

(250.265)

(28.558.112)

(600.000)

8.353.605

7.753.605

(381.504)

2.442.144

2.060.640

10.911.408

183.147

28.750

196.000

147.681

20.384

111.477

504.431

12.103.278

(54.644)

(338.367)

(607.368)

601.014

(202.626)

61.043

145.342

(863.652)

67.783

10.911.803

(669.702)

(254.686)

(46.128)

(40.000)

9.901.287

776.141

(7.341.532)

(604.036)

66.492

(352.961)

(144.593)

(7.600.489)

(1.800.000)

-

(1.800.000)

500.798

1.941.346

2.442.144

2222

Underwriting Profit (Loss) Account for the Motor Department for the Period Ended 31st December

Jordan Abroad Total Jordan Abroad Total

2005 2004

10.777.018

-

240.991

2.536

10.533.491

4.700.462

85.899

4.614.563

5.059.919

133.195

4.926.724

-312.161

10.221.329

6.633.656

-

32.925

32.794

6.567.937

3746.797

143.168

3.603.629

3.191.006

80.956

3.110.050

7.061.516

10.221.329

7.061.516

498

61.657

3.221.968

134.061

339.561

1.812.643

2.286.266

935.702

5.775.235

-

238.549

-

5.536.686

2.290.309

85.899

2.204.410

2.712.095

131.257

2.580.838

-376.428

5.160.258

3.302.391

-

32.925

32.794

3.236.672

2.133.196

55.109

2.078.088

1.972.495

68.269

1.904.226

3.410.534

5.160.258

3.410.534

-

53.325

1.803.049

134.061

197.981

768.171

1.100.214

702.835

5.001.783

-

2.442

2.536

4.996.805

2.410.153

-

2.410.153

2.347.824

1.938

2.345.886

64.267

5.061.072

3.331.265

-

-

-

3.331.265

1.613.601

88.060

1.525.541

1.218.511

12.687

1.205.824

3.650.982

5.061.072

3.650.982

498

8.332

1.418.919

-

141.580

1.044.472

1.186.052

232.867

JD JD JD JDJD JDWritten Premiums

Direct insurance

Facultative reinsurance accepted

Local reinsurance share

Foreign reinsurance share

Net Written Premiums

Opening balance

Unearned premium provision

Deduct : Reinsurance share

Net unearned premium provision

Closing provision

Unearned premium provision


Net unearned premium provision

Change in Unexpired Risks Provision

Net Earned Premium Income

Claims Paid

Salvage and subrogation

Local reinsurance share

Foreign reinsurance share

Net Claims Paid

Closing outstanding claims provision

Reported


Net outstanding claims provision

Opening outstanding claims provision

Reported


Net outstanding claims provision

Cost of Claims Incurred


Deduct


Add

Commissions received

Issuing fees

Total Revenues

Excess-of-loss premiums

Commissions paid & other expenses

Allocated administrative expenses

Total Expenses

Underwriting Profit (Loss)

5.242.984

-

136.441

-

5.106.543

2.449.942

27.417

2.422.524

2.290.309

85.899

2.204.410

218.114

5.324.657

4.176.543

701.878

10.388

29.255

3.435.021

1.972.495

68.269

1.904.226

1.885.794

101.769

1.784.025

3.555.222

5.324.657

3.555.222

-

46.432

1.815.867

174.093

177.583

845.357

1.197.033

618.834

4.933.531

-

-

-

4.933.531

1.691.341

-

1.691.341

2.410.153

-

2.410.153

-718.813

4.214.718

2.389.367

-

-

57.317

2.332.051

1.218.511

12.687

1.205.824

1.305.343

120.250

1.185.093

2.352.782

4.214.718

2.352.782

-

9.167

1.871.103

-

160.591

928.349

1.088.940

782.164

10.176.515

-

136.441

-

10.040.074

4.141.282

27.417

4.113.865

4.700.462

85.899

4.614.563

-500.699

9.539.376

6.565.910

701.878

10.388

86.572

5.767.072

3.191.006

80.956

3.110.050

3.191.137

222.019

2.969.118

5.908.004

9.539.376

5.908.004

-

55.599

3.686.970

174.093

338.174

1.773.706

2.285.973

1.400.997

2323

Financial Report

2005

JD

Jordan Abroad Total

JD

2004

Jordan Abroad Total

JD JD

Underwriting Profit (Loss) Account for the Marine Department for the Period Ended 31st December

Written PremiumsDirect insuranceFacultative reinsurance acceptedLocal reinsurance shareForeign reinsurance shareNet Written PremiumsOpening balanceUnearned premium provisionDeduct : Reinsurance shareNet unearned premium provisionClosing provisionUnearned premium provisionDeduct : Reinsurance shareNet unearned premium provisionChange in Unexpired Risks ProvisionNet Earned Premium IncomeClaims PaidSalvage and subrogation Local reinsurance shareForeign reinsurance shareNet Claims PaidClosing outstanding claims provision ReportedDeduct : Reinsurance shareNet outstanding claims provisionOpening outstanding claims provisionReportedDeduct : Reinsurance shareNet outstanding claims provisionCost of Claims Incurred

Net Earned Premium IncomeDeductCost of Claims IncurredAddCommissions receivedIssuing feesTotal RevenuesExcess-of-loss premiumsCommissions paid & other expensesAllocated administrative expensesTotal Expenses


JD1.967.101

-

35.760

1.287.903

643.438

343.754

227.715

116.039

445.693

290.356

155.337

-39.298

604.139

415.435

-

-1.340

242.508

174.267

448.418

311.423

136.995

248.354

143.170

105.184

206.078

604.139

206.078

415.891

71.818

885.771

25.000

42.739

316.696

384.435

501.337

JD1.160.815

-

25.727

759.908

375.180

283.868

194.450

89.418

246.040

163.966

82.074

7.344

382.523

416.463

40.679

9.212

268.648

97.923

212.487

119.023

93.464

137.540

74.795

62.745

128.642

382.523

128.642

293.996

46.367

594.245

20.000

47.912

192.071

259.983

334.262

481.516

-

4.140

301.235

176.140

98.297

60.495

37.802

97.713

63.749

33.946

3.837

179.977

134.435

-

-

75.197

59.238

35.867

24.147

11.720

21.389

10.695

10.694

60.264

179.977

60.264

122.168

4.379

246.261

-

4.138

111.736

115.874

130.387

1.642.331

-

29.868

1.061.143

551.320

382.165

254.945

127.220

343.754

227.715

116.039

11.181

562.501

550.898

40.679

9.212

343.845

157.161

248.354

143.170

105.184

158.929

85.490

73.439

188.906

562.501

188.906

416.164

50.746

840.506

20.000

52.050

303.807

375.857

464.649

1.414.864

-

20.885

983.468

410.511

246.040

163.966

82.074

337.639

232.590

105.049

-22.975

387.536

284.078

-

-1.340

182.579

102.839

371.529

262.864

108.665

212.487

119.023

93.464

118.040

387.536

118.040

295.244

66.840

631.580

25.000

35.779

188.265

249.044

382.536

552.237

-

14.875

304.436

232.927

97.713

63.749

33.964

108.055

57.766

50.288

-16.324

216.603

131.357

-

-

59.929

71.428

76.889

48.559

28.330

35.867

24.147

11.720

88.038

216.603

88.038

120.648

4.978

254.191

-

6.959

128.431

135.391

118.801

Jordan Insurance CompanyA Public Shareholding CompanyAmman - Jordan

2424

2005

JD

Jordan Abroad Total

JD

2004

Jordan Abroad Total

JD JD

Underwriting Profit (Loss) Account for the Fire Department for the Period Ended 31st December

JD JD4.320.950

1.319

649.706

3.297.420

375.144

1.512.212

1.378.731

133.481

1.903.255

1.748.358

154.897

-21.416

353.728

2.054.397

-

391.180

1.482.433

180.784

4.380.616

4.188.155

192.461

2.723.524

2.581.630

141.894

231.351

353.728

231.351

630.327

91.894

844.598

25.058

96.903

580.011

701.972

142.625

729.830

-

37.607

597.221

95.002

278.221

236.699

41.522

294.062

245.822

48.240

-1.505

88.283

491.544

-

294.052

134.680

62.812

591.159

496.887

94.272

318.242

291.951

26.291

130.793

88.283

130.793

181.318

8.065

146.876

-

18.127

174.630

192.757

-45.881

Written PremiumsDirect insuranceFacultative reinsurance acceptedLocal reinsurance shareForeign reinsurance shareNet Written PremiumsOpening balanceUnearned premium provisionDeduct : Reinsurance shareNet unearned premium provisionClosing provisionUnearned premium provisionDeduct : Reinsurance shareNet unearned premium provisionChange in Unexpired Risks Provision

Net Earned Premium IncomeClaims PaidSalvage and subrogation Local reinsurance shareForeign reinsurance shareNet Claims PaidClosing outstanding claims provisionReportedDeduct : Reinsurance shareNet outstanding claims provisionOpening outstanding claims provisionReportedDeduct : Reinsurance shareNet outstanding claims provisionCost of Claims Incurred



3.612.161

33.260

529.154

2.822.081

294.186

1.808.779

1.697.249

111.530

1.512.211

1.378.730

133.481

-21.951

272.235

1.109.924

22.133

15.478

1.001.581

70.731

2.723.524

2.581.630

141.894

2.667.122

2.496.114

171.008

41.616

272.235

41.616

690.236

121.698

1.042.553

35.258

66.933

598.472

700.663

341.890

716.426

-

35.973

590.755

89.698

245.063

202.521

42.542

278.221

236.699

41.522

1.020

90.718

128.331

-

1.619

112.590

14.122

318.242

291.951

26.291

401.577

360.317

41.260

-847

90.718

-847

180.418

2.210

274.193

-

14.209

167.943

182.152

92.041

5.050.780

1.319

687.313

3.894.641

470.146

1.790.433

1.615.430

175.003

2.197.317

1.994.180

203.137

-22.921

442.011

2.545.941

-

685.232

1.617.113

243.596

4.971.775

4.685.042

286.733

3.041.766

2.873.581

168.185

362.144

442.011

362.144

811.645

99.959

991.473

25.058

115.030

754.640

894.729

96.744

4.328.587

33.260

565.126

3.412.836

383.885

2.053.842

1.899.770

154.072

1.790.433

1.615.430

175.003

-20.931

362.953

1.238.255

22.133

17.097

1.114.171

84.853

3.041.766

2.873.581

168.185

3.068.699

2.856.431

212.268

40.770

362.953

40.770

870.655

123.907

1.316.746

35.258

81.142

766.416

882.815

433.931


25

Financial Report

2005

JD

Jordan Abroad Total

JD

2004

Jordan Abroad Total

JD JD


Underwriting Profit (Loss) Account for the Liability Department for the Period Ended 31st December

JD JD463.946

-

10.781

435.621

17.544

34.963

31.270

3.693

287.959

282.153

5.806

-2.113

15.431

18.133

-

-

13.704

4.429

79.207

67.664

11.543

71.057

61.195

9.862

6.110

15.431

6.110

22.892

6.043

38.256

-

4.437

61.765

66.202

-27.946

18.068

-

-

13.316

4.752

6.627

6.104

523

5.943

4.358

1.585

-1.062

3.690

-

-

-

-

-

-

-

-

-

-

-

-

3.690

-

2.609

87

6.386

-

-

4.142

4.142

2.244

Written PremiumsDirect insuranceFacultative reinsurance acceptedLocal reinsurance shareForeign reinsurance shareNet Written PremiumsOpening balanceUnearned premium provisionDeduct : Reinsurance shareNet unearned premium provisionClosing provisionUnearned premium provisionDeduct : Reinsurance shareNet unearned premium provisionChange in Unexpired Risks Provision

Net Earned Premium IncomeClaims PaidSalvage and subrogation Local reinsurance shareForeign reinsurance shareNet Claims PaidClosing outstanding claims provision ReportedDeduct : Reinsurance shareNet outstanding claims provisionOpening outstanding claims provisionReportedDeduct : Reinsurance shareNet outstanding claims provisionCost of Claims Incurred



130.474

-

11.272

107.512

11.691

19.661

17.173

2.488

34.963

31.270

3.693

-1.205

10.486

23.226

200

1.916

18.602

2.508

71.057

61.195

9.863

76.392

65.516

10.876

1.495

10.486

1.495

34.609

2.462

46.062

-

615

23.068

23.683

22.379

19.057

-

-

17.108

1.948

13.091

12.745

346

6.627

6.104

523

-177

1.771

131

-

-

124

7

-

-

-

-

-

-

7

1.771

7

6.843

22

8.630

-

419

4.368

4.787

3.842

482.014

-

10.781

448.937

22.296

41.590

37.374

4.216

-

293.902

286.511

7.391

-3.175

19.121

18.133

-

-

13.704

4.429

79.207

67.664

11.543

71.057

61.195

9.862

6.110

19.121

6.110

25.501

6.130

44.642

-

4.437

65.906

70.344

-25.702

149.531

-

11.272

124.620

13.639

32.752

29.918

2.834

41.590

37.375

4.216

-1.382

12.257

23.357

200

1.916

18.726

2.515

71.057

61.195

9.863

76.392

65.516

10.876

1.502

12.257

1.502

41.452

2.485

54.692

-

1.034

27.436

28.471

26.222

26

Underwriting Profit (Loss) Account for the Other Classes Department for the Period Ended 31st December


Jordan Abroad Total2005

406.859

-

10.111

228.523

168.225

82.489

27.018

55.471

75.704

17.541

58.163

-2.692

165.533

50.933

-

1.700

27.993

21.240

253.595

205.938

47.657

70.806

35.835

34.971

33.926

165.533

33.926

28.179

1.650

161.436

-

4.707

64.764

69.470

91.966

286.567

-

10.111

212.210

64.246

28.959

17.590

11.369

18.994

8.236

10.758

611

64.857

38.231

-

1.700

27.993

8.538

240.645

195.578

45.067

35.397

25.475

9.922

43.683

64.857

43.683

23.128

1.400

45.701

-

3.011

38.150

41.162

4.540

120.292

-

-

16.313

103.979

53.530

9.428

44.102

56.710

9.305

47.405

-3.303

100.676

12.702

-

-

-

12.702

12.950

10.360

2.590

35.409

10.360

25.049

-9.757

100.676

9.757

5.051

250

115.734

-

1.695

26.613

28.308

87.426

JDJD JDWritten PremiumsDirect insuranceFacultative reinsurance acceptedLocal reinsurance shareForeign reinsurance shareNet Written PremiumsOpening balanceUnearned premium provisionDeduct : Reinsurance shareNet unearned premium provisionClosing provisionUnearned premium provisionDeduct : Reinsurance shareNet unearned premium provisionChange in Unexpired Risks ProvisionNet Earned Premium IncomeClaims PaidSalvage and subrogation Local reinsurance shareForeign reinsurance shareNet Claims PaidClosing outstanding claims provision ReportedDeduct : Reinsurance shareNet outstanding claims provisionOpening outstanding claims provisionReportedDeduct : Reinsurance shareNet outstanding claims provisionCost of Claims IncurredNet Earned Premium IncomeDeductCost of Claims IncurredAddCommissions receivedIssuing feesTotal RevenuesExcess-of-loss premiumsCommissions paid & other expensesAllocated administrative expensesTotal Expenses


170.118

-

4.827

114.472

50.819

16.038

8.139

7.899

28.959

17.590

11.369

-3.470

47.348

191.889

-

-

157.552

34.337

35.397

25.475

9.922

65.341

45.405

19.902

24.323

47.348

24.323

10.566

1.124

34.716

-

802

30.077

30.879

3.836

109.632

-

-

16.793

92.839

52.231

9.595

42.636

53.530

9.428

44.102

-1.466

91.373

15.222

-

-

5.472

9.750

35.409

10.360

25.049

45.189

20.252

24.937

9.862

91.373

9.862

5.885

134

87.530

-

2.411

25.131

27.54.2

59.988

279.750

-

4.827

131.265

143.658

68.269

17.734

50.535

82.489

27.018

55.471

-4،936

138،722

13.112

-

-

-163.024

44.089

70.806

35.835

34.971

110.530

65.657

44.873

34.185

138.722

43.185

16.451

1.258

122.245

-

3.213

55.208

58.421

63.825

Jordan Abroad Total2004

JD JD JD

27

Financial Report


Underwriting Profit (Loss) Account for the Medical Department for the Period Ended 31st December

2005JD JD

2004

1.705.900

146.041

35.435

819.894

996.612

371.375

149.705

221.670

364.017

155.437.

208.580

13.090

1.009.702

828.095

-

-

460.353

367.742

1.456.465

206.582

73.185

663.787

926.076

258.022

115.812

142.211

371.375

149.705

221.670

-79.459

846.617

876.867

-

-

471.866

405.002

212.556

121.534

91.022

252.007

137.787

114.220

344.544

1.009.702

344.544

1.916

55.814

722.888

-

236.139

235.255

471.393

251.495

252.007

137.787

114.220

227.232

111.212

116.020

403.202

846.617

403.202

20.240

31.603

495.258

-

194.736

93.756

288.492

206.766

Written PremiumsDirect insuranceFacultative reinsurance acceptedLocal reinsurance shareForeign reinsurance shareNet Written Premiums

Opening balanceUnearned premium provisionDeduct : Reinsurance shareNet unearned premium provisionClosing provisionUnearned premium provisionDeduct : Reinsurance shareNet unearned premium provisionChange in Unexpired Risks Provision


Claims PaidSalvage and subrogation Local reinsurance shareForeign reinsurance shareNet Claims PaidClosing outstanding claims provision ReportedDeduct : Reinsurance shareNet outstanding claims provision

Opening outstanding claims provisionReportedDeduct : Reinsurance shareNet outstanding claims provisionCost of Claims Incurred



28


2005JD JD

2004

1.767.178

40.765

81.366

881.257

845.319

1.429.749

65.541

1.364.208

1.364.196

89.306

1.274.890

934.637

717.994

230.218

-

28.424

406.135

513.653

204.895

1.247.513

18.274

79.152

524.235

662.401

1.528.534

72.532

1.456.002

1.429.748

65.541

1.364.207

754.196

622.315

348.741

-

27.137

325.476

618.443

69.184

153.380

51.515

69.184

50.595

18.589

546.579

934.637

546.579

69.756

31.887

111.580

601.281

-

26.393

246.853

34.035

307.281

293.999

50.595

18.589

61.448

38.451

22.996

614.036

754.196

614.036

66.013

55.54

67.309

329.022

-

39.516

76.097

11.351

126.963

202.059

Underwriting Profit (Loss) Account for the Life Department for the Period Ended 31st December

Written PremiumsDirect insuranceFacultative reinsurance acceptedLocal reinsurance shareForeign reinsurance shareNet Written PremiumsOpening balanceUnearned premium provisionDeduct : Reinsurance shareNet Unearned Premium ProvisionClosing provisionUnearned premium provisionDeduct : Reinsurance shareNet unearned premium provisionChange in Unexpired Risks Provision


Claims PaidSalvage and subrogation Local reinsurance shareForeign reinsurance shareNet Claims PaidClosing outstanding claims provision ReportedDeduct : Reinsurance shareNet outstanding claims provisionOpening outstanding claims provisionReportedDeduct : Reinsurance shareNet outstanding claims provision


Net Earned Premium IncomeDeductCost of Claims IncurredAddCommissions receivedIssuing feesInvestment income attributable to U/WTotal RevenuesExcess-of-loss premiumsCommissions paid & other expensesAllocated administrative expensesChange in other technical provisionTotal ExpensesUnderwriting Profit (Loss)

29

Notes


Notes to Consolidated Financial Statements

1. Generala. The Company was established in 1951 and registered as a Jordanian public shareholding company under number (11) with a

paid-up capital of JD 400,000. On July 12, 1981, the Company’s capital was raised to JD 1,100,000.

On May 1, 1988, the company merged with General Assurance Company for the Near East in Jordan, after the evaluation of the two companies’ assets. Accordingly, the Company’s capital was increased to JD 5,000,000 divided into 5,000,000 shares.

On May 8, 2001, the authorized capital was increased by JD 5,000,000 to become JD 10,000,000 (10,000,000 shares).

The Company is involved in various insurance activities and has branches in Riyadh, Jeddah, Khobar, Abu Dhabi, Sharjah, and Dubai.

b. The number of employees in the Company was (198) as of December 31, 2005 (185 as of December 31, 2004).c. The financial statements were approved by the Board of Directors on January 29, 2005.

2. Accounting PoliciesThe attached financial statements have been prepared in accordance with the forms determined by the Insurance Regulatory Commission, and the following are the most significant accounting policies:

A. Basis of preparation- The financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS), related interpretations and on the historical cost basis. Financial assets and financial liabilities are stated at fair value at year-end according to IAS no. (39) relating to financial instruments.

- The financial statements are stated in Jordanian Dinar.B. Basis of consolidating financial statements

The consolidated financial statements include the financial statements of the Company and branches abroad. Inter-branch transactions and balances have been eliminated.The Company owns Jordan Insurance Co-operative Company established in Bahrain in August 1992, however, subsequent development including the modification of insurance regulations and the amendment of capital requirements in the Arab Gulf countries obstructed the setting up of the company, which is considered non-operating and has not undertaken any commercial activity until the date of the financial statements. Moreover, the financial statements of Jordan Insurance Co-operative Company have not been consolidated within the financial statements for the year 2005 as its assets and liabilities are immaterial.

C. Revenues and expenses recognitionInsurance premiums are recognized according to the accrual basis, all commissions and other acquisition costs for new or renewed insurance policies are taken to the statement of income when incurred. All other revenues and expenses are accounted for according to the accrual basis. Cash dividends are recorded as revenue when declared and ratified by the General Assembly. Sales and purchases of financial assets are recognized according to settlement date.

D. Reinsurance accountsReinsurers’ shares of insurance premiums, paid claims, technical provisions, and all other rights and obligations resulting from reinsurance are based on contracts concluded between the company and reinsurers, and accounted for according to the accrual basis.

E. Technical provisionsTechnical provisions are allocated and maintained in accordance with the Insurance Regulatory Commission instructions as follows:

1. The unearned premiums provision for the general insurance policies is computed according to the rest of the period of the

30

insurance policy, taking into consideration that the total days of the year is (365) days, excluding the marine policies since the total written premiums of the fourth quarter of the year represents the unearned premiums at the date of the financial statements.

2. The reserve for outstanding claims represents management’s estimation of the total amounts claimed, but not yet settled, on a claim [by] claim as of the end of the year.

3. Additional provisions are taken against unreported claims and catastrophic claims based on the Company’s experience and assessment.

4. The mathematical reserve for life insurance policies is computed according to actuarial estimates and recommendations.F. Financial assets for trading

Financial assets for trading are initially stated at cost and revalued at fair value at year-end. Gains or losses resulting from revaluation are recognized in the statement of income.

G. Financial assets available for saleFinancial assets available for sale are initially stated at cost and revalued at fair value at year-end. Gains or losses arising from revaluation are stated in a separate account under shareholders’ equity until the investments are sold, collected, disposed of or determined to be impaired. At that time, these amounts, previously recognized in equity, are included in the statement of income.

H. Held-to-maturity investmentsWhen bought, held-to-maturity investments are recorded at cost with the premium or discount amortized on a systematic basis until maturity, using the effective interest rate method, and recognized in the statement of income. Provisions resulting from the impairment in value and leading to the possibility of not recovering the asset or part of it are taken and charged to income.

I. Property investments are stated at cost and depreciated using the straight-line method at annual rates ranging from 2% to 10%. When the recoverable amount is less than the net book value of the investment, the value of the investment is reduced to the recoverable amount and the impairment loss is recorded in the statement of income.

J. Fixed assets- Fixed assets are stated at cost after deducting accumulated depreciation. They are depreciated according to the straight-line method over the expected productive life at annual rates ranging from 10% to 20%.

- When the recoverable amount of a fixed asset is less than its net book value, the value of the asset is decreased to the recoverable amount and the impairment loss is recorded in the statement of income.

K. Allowance for doubtful accountsAn allowance for doubtful debts is taken when it is evident to management that these debts cannot be recovered in part or in full. The calculation of this allowance is based on the difference between the book value and the recoverable amount.

L. Provision for income tax- A provision for income tax is taken based on the estimation of the expected tax liabilities. Differences on prior years’ income taxes are recorded when paid after final settlements are reached with the Income Tax Department.

- According to IAS no. (12) no deferred tax benefits are recognized as assets since such benefits are not utilizable in the future.M. Provision for end-of-service indemnity

The annual claims paid for employees who quit service are recorded in the provision for staff end-of-service indemnity when paid. A provision is taken for new liabilities.

N. Foreign currenciesForeign currency transactions are recorded in Jordanian Dinar at the exchange rates prevailing at the transaction date. Assets and liabilities denominated in foreign currencies are translated to Jordanian Dinar according to the average exchange rates published by the Central Bank of Jordan at year-end. Exchange gains and losses resulting there from are taken to the statement of income.

O. General and administrative expenses are allocated to insurance department according to the percentage of premiums for each department from the gross premiums.

P. Intangible assetsIntangible assets are stated at cost after deducting accumulated amortization. They are amortized over (5) years at an annual rate of 20%.

Q. Fair valueThe fair value of a listed financial asset is based on its quoted closing price in the financial markets at the date of the financial statements. Where the fair value of unlisted financial assets is stated at cost based on the last financial statement or by any other acceptable method.

31

Notes

PolicyholdersAgentsEmployeesOthers

Deduct: Provision for doubtful debtsNet Accounts Receivable

31st December

JD

2005 2004

JD

6.777.624

548.751

63.870

398.911

-977.310

6.811.846

4.739.208

431.610

53.815

484.448

-825.668

4.883.413

5- Accounts Receivable-Net:-

Local insurance companiesForeign reinsurance companies

Deduct : Provision for doubtful debtsNet due from other insurers

31st December

JD

2005 2004

JD

644.736

411.336

-14.000

1.042.072

343.037

608.527

-14.000

937.564

6- Insurance Companies Accounts:-

Cash on handCash at banks (current accounts)Total

31st December

JD

2005 2004

JD

188.409

1.872.231

2.060.460

230.943

2.211.201

2.442.144

3- Cash on Hand and at Banks:-

Notes receivableChecks under collectionTotal

31st December

JD

2005 2004

JD

1.500

513.981

515.481

4- Checks Under Collection and Notes Receivable:-

1.500

498.201

499.701

32

1.414.739

525.689

1.940.428

836.607

879.250

1.715.857

31st December 2004

Total Total

2.251.346

1.404.939

3.656.285

3.330.911

1.940.207

5.271.118

Deposits duein one month

Deposits duein 1-12 months

31st December 2005

JD JD JD JDBank

Inside JordanOutside JordanTotal

7- Deposits at Banks:-

Shares listed on Amman Stock Exchange (ASE)

31st December

JD

2005 2004

JD

1.272.065

1.272.065

292.398

292.398

8- Trading Investments:-

9- Investments Available for Sale:-

16.808.771

16.808.771

1.038.739

1.038.379

17.847.510

JD JD

25.737.478

25.737.478

16.541.650

16.541.650

42.279.128

3.514.927

3.514.927

259.919

259.919

3.774.846

JD

29.252.405

29.252.405

16.801.569

16.801.569

46.053.974

JD JD

16.724.882

16.724.882

922.786

922.786

17.647.668

83.889

83.889

115.953

115.953

199.842

2005 2004

Listed Not Listed Total Listed Not Listed

31st December

Inside JordanSharesTotalOutside JordanSharesTotalGrand Total

JD

Total

Government guaranteed bondsListed bonds in the financial marketNon-listed bonds in the financial marketTotal

31st December

JD

2005 2004

JD

1.000.000

677.500

-

1.677.500

1.000.000

677.500

45.980

1.732.480

10- Investments Held to Maturity:-

Loans for policyhoders less than surrender valueTotal

31st December

JD

2005 2004

JD

88.49588.495

62.05462.054

11- Loans and Advances of the Life Department:-

33

Notes

Buildings-netlandsTotal

31st December

JD

2005 2004

JD

2.809.870

4.719.568

7.529.438

2.726.008

2.817.957

5.543.965

12- Property Invetments-Net:-

Refundable depositsPrepaid expensesAccrued revenuesKey money-netOtherTotal

31st December

JD

2005 2004

JD

189.866

391.725

34.950

64.300

47.867

728.708

142.389

216.370

37.954

86.250

-

482.963

13- Other Assets-Net:-

Bank creditTotal

31st December

JD

2005 2004

JD6.617.653

6.617.653

-

-

15- Due to Bank:-

JD

-

57.712

68.999

163.035

848.177

1.137.923

JD

498.717

263.053

23.089

46.194

84.728

915.781

2005AccumulatedDepreciationCost

31st December

Lands*Buildings*Equipments & machinery*VehiclesFurniture & fixturesTotal

*These items represent properties used for the Company’s operational purposes.

14- Fixed Assets-Net:-

Agents OthersTotal

31st December

JD

2005 2004

JD

91.328

1.180.075

1.271.403

88.198

763.864

852.062

16- Accounts Payable:-

34

Accrued expensesThe Ministry of Finance depositsBoard of Directors remunirationUnearned revenuesPremiums in advanceDeposits of matured individual policiesCar parking depositsLife policies depositsTotal

31st December 2004

JD

2005 2004

JD

102.326

75.160

47.500

262.304

1.171

-

1.725

11.342

501.528

60.128

82.588

40.000

258.065

1.887

5.680

1.972

20.739

471.059

19- Other Liabilities:-

Company’s share from mathematical reserveRetained earnings - additionalTotal

31st December 2004

JD

2005 2004

JD

1.234.889

40.000

1.274.889

1.324.207

40.000

1.364.207

20- Accumulated Mathematical Reseve-Net:-

Local insurance companiesForeign reinsurance companiesTotal

31st December 2004

JD

2005 2004

JD

681.240

2.155.440

2.836.680

540.455

1.516.355

2.056.810

17- Insurance Companies Accounts:-

Provisions for income tax*Scientific research and vocational training provisionUniversities fees provision Provision for vocational and technical training fundProvision for staff end-of-service indemnityAnnual leaves provisionProvision for group life policies maturedProvision for accrued policies maturedInsurance Regulatory Commission fees provisionTotal

31st December 2004

JD

2005 2004

JD

3.257.457

292.780

393.833

209.142

771.822

3.576

17.448

38.116

15.288

4.999.462

1.387.245

103.855

169.988

91.148

666.260

3.576

19.605

22.093

12.977

2.476.747

18- Other Provisions:-

35

Notes

Dividends receivedGain from the sale of trading investments - netGain from the sale of investments available for sale - netChange in the fair value of trading investmentsRental income - netTotal

31st December 2004

JD

2005 2004

JD

453.087

221.961

20.188.622

(58.090)

299.264

21.104.844

459.955

63.856

7.788.799

(20.384)

228.477

8.520.703

23- Income for Financial Assets and Investments - Net

Foreign exchange differencesOtherTotal

31st December 2004

JD

2005 2004

JD

20.157

96.078

116.235

29.706

21.871

51.577

24- Other Revenues:

22- Interest Revenue:-

Bank interest Investment held to maturity interestLoans interest

Amount transferred to statement of incomeLife DepartmentAmount transferred to statment of incomeTotal

31st December 2004

JD

2005 2004

JD

105.897

118.802

2.447

227.146

99.019

128.127

227.146

96.769

80.583

765

178.117

62.880

115.237

178.117

Balance as of January 1, 2005Change in fair valueNet realized gainsNet change in fair valueBalance - end of the year

31st December 2004

JD

2005 2004

JD

801.772

21.113.388

(20.863.670)

249.718

1.051.490

2.465.626

1.086.865

(2.750.719)

(1.663.854)

801.772

21- Cumulative Changes in fair value:-

36

25- Administrative and General Expenses:-

Salaries & bonuses

Provident fund

End-of-service benefits

Company contributions to social security

Rents

Stationary & publications

Advertisements

Production commissions

Bank Interest

Electricity, heating and water

Repairs

Post & telecommunication

Travel & transportation

National agent commission / outside Jordan

Medical expenses

Professional fees

Hospitality

Revalution expenses

Legal fees & expenses

Computer maintenance

Computer program licences

Compter program service

Subscriptions

Board members transportation fees

Tenders expenses

Government fees & others

Donation

Insurance expenses

Depreciation / Life Department

Other

Total

Allocated general and administrative expenses - General Insurance - inside Jordan

Allocated general and administrative expenses - Life Insurance

Allocated general and administrative expenses - General Insurance - inside Jordan

Total General and Administrative Allocated - inside Jordan

Unallocated general administrative expenses

JD JD

1.753.606

69.291

6.510

101.519

40.607

54.988

75.125

50.844

17.204

49.824

26.239

91.471

195.652

199.985

63.526

37.968

32.015

1.320

26.533

12.416

10.800

12.835

39.419

32.700

2.472

27.158

49.260

14.320

7.126

19.797

3.122.530

1.782.801

76.095

1.237.526

3.096.424

26.106

3.122.530

1.886.809

72.437

-

112.352

62.040

79.526

291.837

37.972

76.280

25.064

39.691

136.937

164.965

186.418

90.964

33.793

86.850

4.490

15.155

9.737

12.382

23.953

25.680

45.200

14.257

77.513

66.146

38.340

6.552

105.813

3.829.154

1.871.617

246.853

1.378.288

3.496.758

332.396

3.829.154

31st December 2004

2005 2004

37

Notes

Net income for the year after tax and fees

Earnings per share for the year

31st December 2004

JD

2005 2004

JD

19.092.149

20.000.000

0.955

9.379.141

20.000.000

0.469

26- Earnings Per Share:-Earnings per share is calculated by dividing net profit for the year after tax and fees by the weighted average number of share during the year as follows:

a. According to the insurance activity:Life & MedicalGeneral InsuranceTotalb. According to the geographical distribution:Inside the KingdomOutside the KingdomTotal

31st December 2004

JD

Assets Liabilities

JD

2.793.175

38.108.916

40.902.091

33.761.719

7.140.373

40.902.091

2.793.175

38.108.916

40.902.091

33.761.719

7.140.373

40.902.091

31st December 2004

JD

Assets Liabilities

JD

2.876.189

69.579.858

72.456.047

65.120.994

7.335.053

72.456.047

2.876.189

69.579.858

72.456.047

65.120.994

7.335.053

72.456.047

27. Allocation of Assets and Liabilities According to Sector:-

1999

2

4

6

8

10

1

3

5

7

9

2001 2003 20051998 2000 2002 2004

JD

Share Closing Price IN ASE

38

Board of Directors

Auditing Committee

External Lawyer

Internal Auditor

General M

anager

Investment D

ept.

Information

Technology Director

Marketing and Sales

Director

Reinsurance O

perationsDGM

Finance/HR/Adm

in.DGM

Life and Non-Life

Local Operations

On-Line O

perations

Intl. Operations

Business Development

Operations

Marketing

Operations

BancassuranceOperations

Facultative

R/I Accounts

Treaty

AccountingManagem

ent

Financial Managem

ent

Collection M

anagement

HR

Managem

ent

Legal M

anagement

Operations D

irector

KSA Operations

UAE O

perations

Kuwait O

perations

Jordan Branches

Manager

Life and Medical

Life and PATechnical O

perations

Life and PASales O

perations

Medical InternalOperations

Medical TPAOperations

Asst. GM N

on-Life

Marine

Property

Motor

P.O.Box 279 Amman 11118 Jordan

Phone: 962 6 4634161

Fax: 962 6 4637905

E-mail: [email protected]

www.jicjo.com

P.O.Box 279 Amman 11118 Jordan

Phone: 962 6 4634161

Fax: 962 6 4637905

E-mail: [email protected]

www.jicjo.com

54th annual report - jordan insurance company e 2005.pdf · the company started a comprehensive...

Documents