1- 2009 Business Issues
The 2009 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:
a) Global Performance Indicators:
19.7% yearly increase in Gross Written Premiums
The Gross Written Premiums during the year 2009 increased by LBP 5.7 billion to reach LBP 34.9 billion.
64% yearly increase in Provisions & Reserves
The total Provisions & Reserves increased by LBP 10.3 billion to reach LBP 26.2 billion at 2009 year end.
22% yearly decrease in Shareholders Equity
Total shareholders equity decreased by LBP 7.2 billion to reach a total of LBP 25.7 billion at 2009 year end.
5% yearly decrease in Total Assets
Total Assets net of depreciation decreased by LBP 3.4 billion to reach a total of LBP 64.5 billion at 2009 year end.
0.4% yearly decrease in the ratio of Expenses to Gross Written Premium
The company was able to reduce its operating expenses during the year 2009, the decrease in the ratio of expenses (excluding acquisition cost) to gross written premium was sustainable and was 21.2% in 2009 versus 21.6% in 2008.
1.73% yearly increase in ratio of Acquisition Cost to Gross Written Premium
During 2009, the acquisition cost (commissions & discounts) ratio to gross written premium increased from 22.26% in 2008 to 23.99% in 2009.
25% yearly increase in Claims Incurred
The aggregate amount of claims incurred and allocated to the year 2009 amounted to LBP 17.5 billion, averaging LBP 73 million per working day. It is worth noting that the ratio of increase (2009 vs. 2008) in claims incurred (25%) was lower than the ratio of increase in gross written premiums (19.7%).
Positive Net Profit
During the year end 2009, the company was successful in generating a meaningful amount of profit (LBP 3.5 billion) which is in line with the companys long tradition of income generation even in the most critical periods. The return on equity reported was 13.5% in 2009 with more positive outlook for 2010.
Secured Capital Solvency Ratio
36.3% at end of 2009 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 over gross written premiums (life and non life).
Return on Equity (ROE)
11.8% in 2009 with more positive outlook for 2010.
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 9001-2000 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 Emile Chartouni & Sons PKF.
