1- 2010 Business Issues
The 2010 business year produced positive results. The corporate vision and the relentless and coordinated efforts of the staff and management team of AL MASHREK insurance & reinsurance SAL have produced the following:
Global Performance Indicators:
19.6% yearly increase in Gross Written Premiums
The Gross Written Premiums during the year 2010 increased by LBP 6.85 billion to reach LBP 41.78 billion.
13% yearly increase in Provisions & Reserves
The total Provisions & Reserves increased by LBP 3.4 billion to reach LBP 29.63 billion at 2010 year end.
2% yearly increase in Shareholders Equity
Total shareholders equity increased by LBP 0.54 billion to reach a total of LBP 26.33 billion at 2010 year end.
6.6% yearly increase in Total Assets
Total Assets net of depreciation increased by LBP 4.25 billion to reach a total of LBP 68.79 billion at 2010 year end.
3.3% yearly decrease in the ratio of Expenses to Gross Written Premium
The company was able to reduce its operating expenses during the year 2010, the decrease in the ratio of expenses (excluding acquisition cost) to gross written premium was sustainable and was 20.5% in 2010 versus 21.2% in 2009.
4.47% % yearly increase in ratio of Acquisition Cost to Gross Written Premium
During 2010, the acquisition cost (commissions & discounts) ratio to gross written premium increased from 23.99% in 2009 to 25.06% in 2010. This ratio remains within the margin of local market conditions.
12.2% yearly increase in Claims Incurred
The aggregate amount of claims incurred and allocated to the year 2010 amounted to LBP 19.66 billion, averaging LBP 82 million per working day. It is worth noting that the ratio of increase (2010 vs. 2009) in claims incurred (12.2%) was lower than the ratio of increase in gross written premiums (19.6%).
Positive Net Profit
During the year end 2010, the company was successful in generating a profit of (LBP 0.4 billion) which is in line with the company’s long tradition of income generation even in the most critical periods. The return on equity reported was 1.67% in 2010 with more positive outlook for 2011.
Secured Capital Solvency Ratio
19% at end of 2010 which is comfortably higher than the 10% minimum requirement imposed by the local insurance regulator. The ratio is computed by dividing shareholders equity net of share and property revaluations and net of General Reserves divided by gross written premiums (life and non life).
Return on Equity (ROE)
1.67% in 2010 with more positive outlook for 2011.
2- Future Outlook
Guided by our corporate Vision, AL MASHREK remains committed to provide its Customers with most efficient quality of service. In this sense, the company is ISO 9001-2008 certified since November 2007 for the "Design & Provision of Insurance Services".
“AL MASHREK” strategy seeks to expand operations in Lebanon and in other potentially profitable jurisdictions.
On the Local scene, the company will be working to increase its sales by promoting:
1. its Client and Business Providers relations
2. its Life insurance resources
On the territorial level, AL MASHERK has been seeking to make best use from its comparative advantage as being among the oldest private insurance companies in the Arab region that are accustomed to operate within a jurisdiction open to international competition.
Audited by the auditors BDO Fiduciaire du Moyen-Orient and Emile Chartouni & Sons PKF.
