IntroductIon

We are pleased to present our fifty third annual report of the company's business activities for 2012 after having been approved by Board of Supreme Audit for the year ended 31st December, 2012.

2012 witnesses a significant progress in the company by presenting the best insurance services especially in Group Life Assurance which achieves premiums of thirty billion Dinar in the current year, and the widely spread of marketing credit insurance as well which achieves premiums of 16 billion Dinar, this type of insurance usually purchased by a borrower that pays off one or more existing debts in the event of death, disability or unemployment. The other insurance types also achieve similar developments.

/ / 2013

1

AbstrAct

1- The nominal and paid up capital of the company is ID. one billion by Insurance Regulatory Act No. (10) of 2005 . 2- The company comprises of 15 departments and it has 19 branches distributed in Iraq between Baghdad and other provinces, 6 in Baghdad and 13 in the provinces. 3- The premiums earned in 2012 are ID.43354000000/- and this value exceeds the planned premiums of 2012 by 97% and exceeds the premiums achieved in 2011 by 76%. 4- The claims paid in 2012 are ID.17721000000000/- for different types of insurance which exceed the planned claims of 2012 by 61% and exceed the actual claims paid of 2011 by 96%. 5- The company deals with different types of insurance: (Individual Life Ass., Group Life Ass., Motor Ins., Marine – Cargo Ins., Fire and Accidents Ins., Engineering Ins. and Fidelity Ins.) 6- The company has 384 employees, 194 males and 190 females. Note that the employees No. was 345 in 2011 which represents an addition of 39 employees and represents an increase of 11% compared with 2011. 7- The invested amounts volume has risen to ID.21653000000 in 2012 which exceeds 3% of the planned amounts and exceeds the achieved amounts in 2011 by 30%. 8- The investment revenues increased by 4% compared with 2011. 9- The solvency of the company rises to 417% which indicates the progress and improvement of the company.

10- The company is planning for a lot of expansion. We intend to deal with Al-Takaful Insurance but after completing the arrangements upon. The company has already had the approval to underwrite with this type of insurance.

2

Ministry of Finance Iraq Insurance Company

AnnuAl report / 2012

First: General Information A- Profile & History: The Iraqi Insurance Company established on 14/10/1959 according to Commercial Companies Act No. 31 of 1957 in Baghdad as a private company dealing with all types of insurance and reinsurance, in 1964 the company was nationalized by the companies nationalization resolutions specializing in life assurance only, and all the portfolios of foreign and Arabian companies in the Iraqi market at that time quoted to the company portfolio . The resolution No. 392 of 1988, allowed the company again to practice all types of insurance. Public Companies Act of 1997, opened a wide range of development and competition to the company. Insurance Regulatory Act No. 10 of 2005 organized the company activities. The company intends to develop the national economics through spreading the privileges of insurance among people.

B – The Capital: The nominal and paid up capital is one billion ID. by Insurance Regulatory Act No. 10 of 2005 and published in Iraqi Gazette number No. 4121 on 11/5/2009 , in addition one billion Dinar is added to underwrite with Takaful Islamic Insurance, so the total capital becomes two billion Dinar, in addition to the total assets more than thirty six billion Dinar. According to the instructions No. 15 of 2012 regarding the minimum limit of the capital which is published in Iraqi Gazette number No. 4239 on 21/5/2012, it is approached General Secretariat for the Council of Ministers to increase the company capital to five billion Dinar .

3

C- Organizational Structure of Iraq Insurance Co.

4

Director-General

Board of Directors

Branches

Departments

Al-Rusafa Br.

Al-Adhamiya Br.

Inside Baghdad

Al-Sadoun Br.

Life Assurance (Underwriting)

Dept.

Life Assurance (Claims) Dept.

Planning Dept.

Internal Auditing Dept.

Financial Dept.

Outside Baghdad

Nineveh Br.

Kirkuk Br.

Diyala Br.

Karbala Br.

Al-Najaf Br.

Al-Qadisiya Br.

Technical Dept.

Administrative Dept.

Al-Kadhumiya Br.

Baghdad Al-Jadeeda

Br. I.T Dept.

Group Life Ass. Dept.

Babil Br.

Wassit Br.

Al-Anbar Br.

Missan Br.

Al-Muthana Br.

Thi-Qar Br.

Al-Basra Br.

Fire and Accidents Ins.

Dept. Investment Dept.

Marketing Dept.

Legal Dept.

Marine-Cargo Ins. Dept.

Motor Ins. Dept.

Al-Karkh Br.

1- Board of Directors :

The highest legislative power in the company, according to State Companies Law No. 22 of

1997, consists of each of the following :-

5

Members Name

Chairman

Sadiq Abdulrahman Hussein

Experienced & Competent

Member

Saeed Abbas Mirza

Experienced & Competent

Member

Kareem Yunis Kadhum

Appointed Member

Shatha Abdelhadi Hashim

Appointed Member

Ali Khalaf Ghazal

Appointed Member

Faiza Salman Ibrahim

Appointed Member

Itiqad Khudair Omran

Elected Member

Angham Rahi Abdulwahid

Elected Member

Lamyaa Fadil Wuhaib

Spare Member

Jabar Hamdan Yusif

Spare Member

Firyal Salim Abbas

2- Departments of the Co. : The headquarter consists of the following departments :-

6

Manager Names Departments

Abbas Shaheed Hadi Marketing Dept.

Ali Khalaf Ghazal Investment Dept.

Shatha Abdulhadi Hashim Planning Dept.

◌Angham Rahi Abdulwahid Legal Dept.

Abdulsada Mhamad Salman Fire and Accidents Dept.

Jabar Hamdan Yusif Group Life Ass. Dept.

Qais Ali Hussein Life Assurance ( claims ) Dept.

Nesreen Abdulmajeed Abdulazeez

Technical Dept.

Lamyaa Fadil Wuhaib Life Assurance ( underwriting ) Dept.

Itiqad Khudair Omran Administrative Dept.

Firyal Salim Abbas Internal Auditing Dept.

Faiza Salman Ibrahim Financial Dept.

Majida Sada Hussein Motor Dept.

Sabriya Murshid Basha Marine Dept.

Nagham Tariq Mahmood I.T. Dept.

3-Branches of the Co. : The company has 19 branches distributed in Iraq between Baghdad and other provinces, 6 in Baghdad and 13 in the provinces.

7

Manager Names Branches Sameera Abood Sadiq Rusafa Branch

Satar Maki Raad Al-Karkh Branch

Najwa Odeshu Dawood Sadoun Branch

Iman Safi Salih Al-Kadhumiya Branch

Basim Maala Hussein Al-Adhamiya Branch

Thamir Abdulkareem Mhamad Baghdad Al-Jadeeda Branch

Abdulrasool Abbas Mirza Al-Najaf Branch

Nema Mishaal Abdulsultan Karbala Branch

Oruba Faisal Marwan Al-Qadisiya Branch

Suaad Nema Hussein Thi-Qar Branch

Yehya Abbas Ibrahim Al-Anbar Branch

Samir Abdulmalik Mhamad Salih Ninavah Branch

Thair Abdulhussein Muhsin Missan Branch

Kareem Salih Humood Al-Muthnna Branch

◌Sheerin Mahdi Mhamad Juad Diyala Branch

Mhamad Lazim Athab Wassit Branch

Bahaa Zuhair Mhamad Babil Branch

Wisam Mhamad Musa Al-Basrah Branch

Ali Mahmood Jamal Kirkuk Branch

D- Manpower: The number of employees in the company is 384 distributed between admin. and technical, 194 males and 190 females . The following table indicates the development of manpower for the years (2008 - 2012) and the number of inactive manpower.

Table No. ( 1 ) Development of manpower

Rate of Inactive Manpower

Rate of

Change

Number of Active

Manpower

Number of Inactive Manpower

Rate of

Change

Total No. of

Manpower

Year

13,2% - 289 44 - 333 2008

12,0% 8,3% 264 36 10,0% 300 2009

3% 22% 321 10 10,0% 331 2010

3% 4% 335 10 4,0% 345 2011

1% 13% 379 5 11 384 2012

The total number of manpower rises after having been appointed and reappointed 384 employees during the year, through filling the vacancies in the staff.

8

333 300

331 345 384

0 50

100 150 200 250 300 350 400

Employees No.

Year 2008 2009 2010 2011 2012

Total Employees No. for 2008- 2012

E- Training and Development: 133 of the employees have been participated in training programs held by Iraqi Accounting and Financial Training Center. The following table indicates the development of training in the last five years and the rate of trainees’ number

to the total number of manpower in the company …

Table No. ( 2 ) Training & development for the last five years

Rate of

Change

Rate of Trainees to the Total

No. of

Trainees

Total No. of

Manpower

Year

- 13% 45 333 2008 1% 15% 46 300 2009 7% 13% 43 331 2010 79% 22% 77 345 2011 73% 35% 133 384 2012

9

Trainees No. for 2008 – 2012

333

300

331

345

384

45

46

43

77

133

Year

2008

2009

2010

2011

2012

Trainees No. Total Employees No.

Secondly: General Indicators of the Company Performance :

A – The Achievement of Objectives: The company participates in developing Economics through providing insurance protection to the customers, encouraging them to save money which used in investment.

1- Insurance Premiums: The company deals with all types of insurance, life and non-life insurance The following table indicates the development of planned and earned premiums and the rates of implementation for the last five years.

Table No. ( 3 )

Development of planned and earned premiums

Rate of Implement.

Rate of Change

%

Earned Premiums

Rate of Change

%

Planned Premiums

Year

115% - 9810627000 - 8500000000 2008

101% 14% 11139059000 29% 11000000000 2009

159% 71% 19068592000 9% 12000000000 2010

123% 23% 24529277000 67% 20000000000 2011

197% 76% 43354051000 10% 22000000000 2012

10

0 10000000000 20000000000 30000000000 40000000000 50000000000

Premiums Amounts

1 2 3 4 5 2008 2009 2010 2011 2012

Planned & Earned Premiums Development for 2008 - 2012

Year Planned Premiums Earned Premiums

2- Investment Revenues: The revenues earned from investing the surplus. The following table indicates the development of planned and earned investment revenues and the

rates of implementation for the last five years.

Table No. ( 4 ) Development of planned and earned investment revenues

Rate of Implement.

%

Rate of Change

%

Earned Investment Revenues

Rate of Change

%

Planned Investment Revenues

Year

81% - 1414310000 - 1750000000 2008

108% 33% 1883109000 - 1750000000 2009

78% -28% 1364174000 - 1750000000 2010

97% 21% 1652786000 -3% 1700000000 2011

86% 4% 1714150000 17% 2000000000 2012

11

Planned & Earned Revenues Development for 2008 - 2012

0

500000000

1000000000

1500000000

2000000000

2500000000

1 2 3 4 5

2008 2009 2010 2011 2012

Revenues Amounts

Year Planned Investment Revenues Earned Investment Revenues

3- Technical Reserves:

Table No. ( 5 ) Development of technical reserves for (2008-2012)

Rate of

Change

Rate of Confined to Planned Reserves

Confined Reserves

Amounts of Planned Reserves

Year

- 95% 8675881000 9100000000 2008

5% 87% 9096024000 10500000000 2009

21% 90% 10969535000 12200000000 2010

20% 101% 13187502000 13000000000 2011

55% 132% 20400606000 15500000000 2012

12

Planned & Confined Reserves for 2008 - 2012

0

5000000000

10000000000

15000000000

20000000000

25000000000

1 2 3 4 5 2008 2009 2010 2011 2012

Reserves Amounts Planned Reserves

Confined Reserves

Table No. ( 6 )

Types of technical reserves compared to 2012 Rate

of Change Reserved Amounts

in 2011 Reserved Amounts

in 2012 Type

of Reserves

223% 2142190000 696301000 Reserves of Effected Risks

128%

488121000

1111724000

Reserves of Outstanding

Claims 3% 1463000000 1500000000 Reserves of

Emergency 20% 9094190000 10872580000 Financial

Reserves

This table indicates the development of the reserves of effected risks compared with 2011 which indicates the development of the company activities, the reserves of outstanding claims increased because of the incomplete claim requirements of the policy holders, the development of financial reserves for individual life ass. indicates increasing policies number, the reserves of emergency has been

increased to face the catastrophic risks in insurance.

13

Technical Reserves according to their types

0

2000000000

4000000000

6000000000

8000000000

10000000000

12000000000

1 2 3 4 Effected Risks Outstanding Emergency Financial Reserves Claims

Reserves Amounts Reserved Amounts in 2012

Reserved Amounts in 2011

B – 1- Insurance Premiums according to Portfolios: The company distributes its plan according to marketing insurance portfolios. The following table indicates the development of planned and earned premiums for each insurance portfolio, with a comparison between planned and earned premiums for each insurance portfolio.

Table No. ( 7 )

Planned & earned premiums according to portfolios in 2012 Rate of Change

%

Earned Premiums in

2011

Rate of Implement.

%

Earned Premiums

Planned Premiums

Portfolio

18% 3118276000 105% 3679126000 3500000000 Individual Life Ass.

119% 14420010000 243% 31544938000 13000000000 Group Ass. 92% 793515000 509% 1528013000 300000000 Motor Ins. -55% 152762000 17% 68597000 400000000 Marine-

Cargo Ins. -16% 1766281000 185% 1482150000 800000000 Fire Ins. 25% 2580220000 108% 3226297000 3000000000 Engineering

Ins. 25% 1462115000 182% 1824929000 1000000000 Public

Accidents Ins.

14

0 5000000000

10000000000 15000000000 20000000000 25000000000 30000000000 35000000000

Individual Life Ass.

Group Life Ass.

Motor Ins.

Marine Ins.

Fire Ins.

Engineering Ins.

Public Accidents Ins.

Planned & earned premiums according to portfolios in 2012

Planned Premiums Earned Premiums

2- Individual Life Assurance:

The individual life assurance distinguished from other types of insurance that it offers saving and protection services. The company has an annual plan to follow up the marketer activities in addition to the mentioned premiums plan. The two following tables indicate the development of the number and insurance amounts of the new individual life assurance policies for (2008-2012).

Table No. ( 8 )

Development of planned and earned individual life assurance policies

Rate of Change

Rate of Implement.

Earned Policies No.

Planned Policies No.

Year

- 62% 747 1200 2008

19% 74% 889 1200 2009 24% 110% 1104 1000 2010 -2% 98% 1083 1100 2011 42% 140% 1539 1100 2012

The earned policies number: are the issued policies number deducted the cancelled policies number.

15

0 200 400 600 800

1000 1200 1400 1600

1 2 3 4 5

2008

2009

2010

2011

2012

Development of planned & earned individual life ass. policies

Planned Policies No.

Earned Policies No.

Table No. ( 9 )

Development of planned and earned individual life assurance amounts

Rate of Change

Rate of Implement.

Earned Ass. Amounts

Planned Ass. Amounts

Year

- 152% 4560240000 3000000000 2008

23% 160% 5621750000 3500000000 2009 23% 138% 6898820000 5000000000 2010 -13% 80% 5984843000 7500000000 2011 10% 88% 6566775000 7500000000 2012

Earned & Planned Individual Life Ass. Amounts for 2008 - 2012

010000000002000000000300000000040000000005000000000600000000070000000008000000000

1 2 3 4 5

2008 2009 2010 2011 2012

Planned Amounts Earned Amounts

3- Types of Investment Revenues: There are four types of the investment of the surplus:- A- Real Estate Investment. B- Contribution in the private and mixed sectors companies. C- Real Estate Loans. D- Deposit at Banks.

16

The following table indicates the planned and earned investment revenues in 2012 compared with 2011.

Table No. ( 10 )

Planned and Earned Investment Revenues in 2012

Rate of

Change

Earned Revenues in 2011

Rate of Implement.

Rate to

Total

Earned Revenues

Planned Revenues

Type of Investment

-

1010203000

8%

59%

1015416000

1150000000

Real Estate Investment

78% 169094000 145% 17% 289703000 200000000 Fixed Deposits

-14%

201617000

87%

10%

173325000

200000000 Real Estate

Loans

-15%

277872000

52%

14%

235706000

450000000 Contribution in private and mixed sector companies

4% 1652786000 86% 100% 1714150000 2000000000 Total

The invested amounts volume rises to ID. 21653000000/- which exceeds 30% of the planned amounts.

17

Investment Revenues according to Portfolios in 2012

Fixed Deposits

% 17

Real Estate Loans

% 10

Contribution in private and mixed sector companies

% 14

Real Estate Investment

% 59

The following table indicates the development of the earned and planned investment revenues and rate of investment revenue to the invested amount in the last five years.

Table No. ( 11 )

Development of investment amounts compared with returns Rate of

Revenue to Invested Amount

Earned Investment Revenues

Rate of

Change

Rate of Implement.

Earned Investment Amounts

Planned Investment Amounts

Year

13% 1414310000 - 123% 10769009000 8740000000 2008 16% 1883108000 12% 95% 12100000000 12800000000 2009 9% 1364174000 20% 105% 14527465000 13800000000 2010 10% 1652786000 15% 94% 16686118000 17800000000 2011 8% 1714150000 30% 103% 21653353000 21100000000 2012

18

Development of investment amounts compared with returns

0 5000000000

10000000000 15000000000 20000000000 25000000000 30000000000 35000000000 40000000000 45000000000

1 2 3 4 5 2008 2009 2010 2011 2012

Planned Investment Amounts Earned Investment Amounts Earned Investment Returns

Table No. ( 12 ) Investment amounts according to the types

Investment Type Year

Deposits Loans Shares Real Estate

2100000000 1512263000 4533240000 2623506000 2008 1210000000 3068837000 4985674000 2903756000 2009 1843100000 3949926000 5313864000 3420574000 2010 3000000000 3621978000 5581152000 4482988000 2011 7600000000 3453912000 5864755000 4734686000 2012

19

0

1000000000

2000000000

3000000000

4000000000

5000000000

6000000000

7000000000

8000000000

1 2 3 4 5 2008 2009 2010 2011 2012

Investment amounts according to the types

Real Estate Shares Loans Deposits

The following table indicates the names of private and mixed companies which our company shares in their capital more than 10% of our company capital with the contribution amounts for each.

Table No. ( 13 ) Names of mixed & private companies

Contribution Amount

Sector Company Name

123506973 Private Eastern Beer Co. 1 435730602 Mixed Light Industries Co. 2 158060210 Mixed Chemical & Plastic Industries

Co. 3

290321236 Mixed Modern Paint Industries Co. 4 110871751 Mixed Al-Hilal Industrial Co. 5 132099397 Mixed Carton Industry Co. 6 209524437 Mixed Modern Construction Co. 7 139405312 Mixed Baghdad Car Services Co. 8 125429285 Mixed Iraqi Land Transport Co. 9 100000000 Mixed Iraqi Co. Seeds Production 10 1753920000 Private Baghdad Soft Drinks Co. 11 210756000 Mixed Baghdad Al-Salam Co. for

Food Industries 12

503640559 Private Investment Bank of Iraq 13 417452120 Arabian Co. (outside Iraq) Arab Reinsurance Co. 14 454914852 Arabian Co. (outside Iraq) Bahrain National Holding Co. 15

20

A- Analysis of the Company Profitability: The operating processes surplus amount rises to 3795419000/- IQD as on 31/12/2012 which exceeds the planned profit by 5% and exceeds the achieved profit of 2011 by 24%.

Table No. ( 14 )

Development of planned and earned profits Rate of Change

Rate of Implement.

Net Earned Profit

Net Planned Profit

Year

- 149.4% 888800000 595000000 2008 6.4% 85.4% 945359000 1107000000 2009 196% 156% 2793873000 1791560000 2010

9% 101.6% 3056169000 3007750000 2011 24% 105% 3795419000 3607700000 2012

21

Development of planned and earned profits

0

500000000

1000000000

1500000000

2000000000

2500000000

3000000000

3500000000

4000000000

2008 2009 2010 2011 2012

Net Planned Profit

Net Earned Profit

B- Expenses: The company's expenses are divided into two main types:- 1- Ins. Operating Expenses: A- Claims: claims paid to policyholders and beneficiaries which form the largest part of the expenses. The two following tables indicate the development of paid and expected claims & the rate of paid claims to earned premiums for each insurance portfolio.

Table No. ( 15 )

Development of expected and paid claims for (2008-2012 Rate of

Change in Paid Claims

Rate of Paid to Expected Claims

Paid Claims

Expected Claims

Year

- 101.5% 3146985000 3100000000 2008 43.4% 112.8% 4512952000 4000000000 2009 105% 232% 9272734000 4000000000 2010 -3% 82% 9028055000 11000000000 2011 96% 161% 17721147000 11000000000 2012

22

0

5000000000

10000000000

15000000000

20000000000

1 2 3 4 5 2008 2009 2010 2011 2012

Development of expected and paid claims for (2008-2012)

Expected Claims Paid Claims

Table No. ( 16 ) Paid claims compared to earned premiums portfolios in 2012

Rate of Claims to Premiums

Paid Claims

Earned Premiums

Portfolio

64% 2348505000 3679126000 Individual Life Ass.

47% 14773220000 31544937000 Group Life Ass. 5% 78770000 1528013000 Motor Ins. 0 - 68597000 Marine-Cargo

Ins. 17% 309327000 1824929000 Public Accidents

Ins. 11% 157586000 1482150000 Fire Ins. 1% 25610000 3226297000 Engineering Ins. 8% 28125000 354272000 Reins. Revenues 41% 17721143000 43708321000 Total

23

Earned Premiums compared to Claims in 2012

0 5000000000

10000000000 15000000000 20000000000 25000000000 30000000000 35000000000 40000000000 45000000000 50000000000

Individual Life Ass.

Group Life Ass.

Motor Ins.

Marine Ins.

Public Accidents Ins.

Fire Ins.

Engineering Ins.

Reins. Revenues

Paid Claims Earned Premiums

B- Reinsurance Premiums:

The reinsurance premiums reached to 5434000000/- IQD. in 2012 which represents 13% of the total premiums, and represents an increase of 34% compared with 2011 . The following table indicates the development of reinsurance premiums for the last five years.

Table No. ( 17 )

Development of reinsurance premiums for (2008-2012) Rate

of Change

Rate of Reins. Premiums to

Earned Premiums

Reinsurance Premiums

Earned Premiums

Year

- 37% 3671160000 9810627000 2008 -13% 29% 3194170000 11139059000 2009 -13% 12% 2204514000 19068592000 2010 84% 17% 4065131000 24529277000 2011 34% 13% 5434306000 43354051000 2012

24

Reinsurance Premiums compared to Total Premiums

0 5000000000

10000000000 15000000000 20000000000 25000000000 30000000000 35000000000 40000000000 45000000000 50000000000

1 2 3 4 5 2008 2009 2010 2011 2012

Total Premiums

Reins. Premiums

C- Reinsurance Claims:

The reinsurance paid claims reached to 34000000/- IQD. in 2012 which represents 0,2% of the total claims…

Table No. ( 18 )

Development of reinsurance share in claims Rate of Change

Rate of Reins. Share in Paid Claims

Reinsurance Share

Paid Claims Year

- 3% 96752000 3183732000 2008 -34% 1% 63821000 4512952000 2009

24417% 17% 1564702000 9272733000 2010 -82% 3% 282515000 8271408000 2011 -88% 0,2% 34077000 17721143000 2012

25

Development of reinsurance share in claims

0 2000000000 4000000000 6000000000 8000000000

10000000000 12000000000 14000000000 16000000000 18000000000 20000000000

1 2 3 4 5 2008 2009 2010 2011 2012

Paid Claims Reins. Share

D- Productivity: 1- Employee Productivity The following table indicates the development of the employee productivity for the last five years.

Table No. ( 19 ) Development of employee productivity for (2008-2012)

Employee Productivity

Employees No.

Earned Premiums

Year

29461342 333 9810627000 2008

37130197 300 11139059000 2009

57609039 331 19068592000 2010

71099353 345 24529277000 2011

112901042 384 43354051000 2012

26

Development of employee productivity for (2008-2012)

0 5000000000

10000000000

15000000000 20000000000

25000000000 30000000000 35000000000

40000000000 45000000000 50000000000

2008 2009 2010 2011 2012 0

50

100

150

200

250

300

350

400

450

Earned Premiums

Employees No.

2- Fee Productivity The following table indicates the development of the fee productivity for the last five years.

Table No. ( 20 ) Development of fee productivity for (2008-2012)

Fee Productivity

Paid Salaries & Fees

Earned Premiums

Year

3,474 2823900000 9810627000 2008

3,853 2891348000 11139059000 2009

6,314 3020137000 19068592000 2010

7,198 3407707000 24529277000 2011

8,516 3692145000 43354051000 2012

27

0 5000000000

10000000000 15000000000 20000000000 25000000000 30000000000 35000000000 40000000000 45000000000

1 2 3 4 5 2008 2009 2010 2011 2012

Development of fee productivity for (2008-2012)

Earned Premiums

Paid Salaries & Fees

2- Management Expenses: The management expenses include salaries, fees, requirements of goods , services and other expenses . The planned management expenses for 2012 reached to 5545000000/- IQD. whereas the paid management expenses reached to 4579000000/- IQD. which represents 83% ( Rate of implement. ) . The following table indicates the development of the planned and paid management expenses for the last five years.

Table No. ( 21 )

Development of planned & paid management expenses Rate

of Implement.

Rate of

Change

Paid management

Expenses

Rate of

Change

Planned management

Expenses

Year

83% - 3285096000 - 3948000000 2008 80% 87% 3436899000 103% 4272000000 2009 87% 5% 3655222000 8% 4196440000 2010 87% 6% 4195217000 -2% 4807000000 2011 83% 9% 4578963000 15% 5545000000 2012

28

0

1000000000

2000000000

3000000000

4000000000

5000000000

6000000000

1 2 3 4 5

2008 2009 2010 2011 2012

Development of planned & paid management expenses

Planned management Expenses Paid management Expenses

C- Solvency: The solvency of the company has risen to 417% in 2012 which indicates the progress and improvement of the company. The following table indicates the

development of the solvency for the last five years …

Table No. ( 22 ) Development of solvency

Rate of Change

Solvency Required Solvency

Current Solvency

Year

- 121.0% 3399629000 4107616000 2008

3% 125.0% 3493137000 4368533000 2009

312% 515% 3166106000 16298714000 2010

-11% 456% 4345666000 19830094000 2011

-8% 417% 6848713000 28549585000 2012

29

Development of solvency

0

5000000000

10000000000

15000000000

20000000000

25000000000

30000000000

1 2 3 4 5 2008 2009 2010 2011 2012

Current Solvency

Required Solvency

MINISTRY OF FINANCE IRAQ INSURANCE COMPANY BALANCE SHEET AS ON 31/Dec./2012

Currency Iraqi Dinars ID. Rate US $ 1 = 1166 ID. Figures in 1000 ID.

Assets Figures in 1000 ID. 2011

Figures in 1000 ID. 2012

Money 6143004 8983132

Investments 15333896 19945917

Debtors 4831897 7593661

Fixed Assets 39544 34022

Total 26348341 36556732

Liabilities Figures in 1000 ID. 2011

Figures in 1000 ID. 2012

Current Liabilities

Creditors 8061195 9612422

Fixed Liabilities

Paid Capital 1000000 1000000

General Reserves 4099644 5543704

Technical Reserves

13187502 20400606

Total 26348341 36556732

30

Profits and Losses Account & Distribution for Financial year on 31/Dec./2012

Operating Activity

Revenues Figures in 1000 ID.

2011 Figures in 1000 ID.

2012 Ins. Processes

Revenues 25963009 46081802

Investment Revenues

1652786 1714150

Operating activity

Expenses Figures in 1000 ID.

2011 Figures in 1000 ID.

2012 Ins. Processes

Expenses 19112658 38592869

Depreciation 477458 382103

Management Expenses

4195217 4578963

Figures in 1000 ID.

2011 Figures in 1000 ID.

2012 Operating

Processes Surplus 3830462 4242017

Other Revenues 152589 119825

Other Expenses Figures in 1000 ID.

2011 Figures in 1000 ID.

2012 926882 566423

Surplus Figures in 1000 ID.

2011 Figures in 1000 ID.

2012 3056169 3795419

31