ALBORZ INSURANCE CO

QUALITYMANAGMENT

UKAS

Gharani Ave. Karimkhan. Tehran. Iran

Tell : +982188803821-29

info@alborzins.ir

www.alborzinsurance.ir

ALBORZ INSURANCE CO

R

ANNUAL REPORT 2009-2010

Gross Written Premiums

Written Premiums Growth

Retained Premiums

Claims Paid

Investment Income

General Expenses

Expense Ratio

Total Assets

Net Technical Provisions

Shareholder’s Equity

2,468,340

27%

1,698,575

1,219,099

176,147

265,833

27%

3,130,332

1,526,811

532,447

1386

3,141,580

11%

2,121,494

1,852,135

241,816

411,186

25%

3,849,976

1,809,888

844,308

1388

2,823,439

14%

1,975,632

1,579,341

236,797

327,862

23%

3,371,969

1,670,105

596,920

1387

Alborz Insurance Company

Key FiguresMil l ion IRR

Alborz Insurance in Brief

Alborz Field of i t ,s Activit ies & Achievements

Management Team

Message from the Chairman

Underwrit ing Performance

Balance Sheet & Profit & Loss Accounts

ContentsContents

Alborz Insurance Company (AIC) was established as a private entity on 21st

July 1959 with an initial capital of 750 Million Iranian Rials which was later increased to 260 Billion Iranian Rials. Recently, after privatization, the capital was once again increased to 400 Billion Iranian Rials, (40 Million Dollars). Keeping in mind the present market situation and considering. the fast growth in the local Insurance market, AIC is planning to increase its capital from 400 Billion IR Rials (40 Million Dollar)to 600 Billion IR Rials(60Million Dollar) with the primary aim of providing superior quality insurance services, generating diversity in insurance business and attaining customer satisfaction. Within a short period of commencing its activities, the company was able to obtain the confidence of owners of capital and commodities. The company installed and implemented Quality Management System in the technical insurance managements (Automobile, Fire, Marine, Engineering, Liability and Personal) in the year 2004, and succeeded receiving ISO9001-2000 certificate by BVQ I and approved by two Credit Institution UKAS, a British company, and COFRAG a French company. In the year 2005, the management of Data processing, Finance, Investment and economic survey and Reinsurance were enhanced to the system.With more than 50 Years of experience and a successful prior record, AIC continued its operations under the same name. Presently, with 50 Branches, 1524 Agents, 276 Brokers and about 1300 employees nationwide, AIC is well prepared and fully equipped to render insurance services to its customers. Today the importance of energy insurance has persuaded insurance companies to consider the subject more seriously and specially for the provision of suitable coverage.Having extended its activities in the field of risks relating to the energy sector, similar to other insurance fields, and in order to attend to the domestic demands for Energy Insurance coverage, AIC had expanded its domain by creating a special Committee called "Oil And Gas Committee" while launching a new specialist branch in southern Iran, in the region called Assalouyeh, which holds one of the largest Gas reserves in the world.Alborz Insurance Company being one of the most successful and the foremost insurance company was able to place itself among the Top Hundred entities of Iran as usual. AIC since several years, was able to maintain the foremost status in the local insurance market in different fields like providing customer oriented services with utmost efficiency, effective presence in capital market and promoting and utilizing IT, and was praised

for its activities by the Government, Members of the Islamic Consultative Assembly and other authorities in the country over several years. On 16/11/2009 AIC was the first State Owned company which got privatized and succeed in breaking the record for sales of its shares in its premier issue, and was able to exhibit itself as the foremost company in the stock market and register its name in the history of the country's Stock Exchange. AIC has recently received a Certificate of Customers Right Protection by the honorable Commerce Minister. The under mentioned report is an outline of the activities of AIC in the recent year, which resulted in its being ranked as the 91st amongst the 100 Foremost companies of Iran.Also, for four consecutive years, the company was able to attain the premier position for "Respecting and Attaining Customer Satisfaction" among all other private and state owned Banks and Insurance Companies in Iran, and was awarded the coveted "Merit Reward" by the Governor of Tehran Province. Furthermore, as per the opinion polls for comparing and regulating Customer Satisfaction carried out by the Deputy Office for Human Resources Development and Management of the President of Islamic Republic of Iran, AIC was able to obtain the first position among all administrative organizations.Being ranked first among all private and public insurance companies in five evaluation indices carried out by the Financial Supervision Management of the Central Insurance Company, for deployment of IT, Transparency in Financial Reporting, Presence and Proficiency in Capital Investment market, provides further reason for AIC to be proud of its achievements.Adequate financial and capital reserves, professional services of its dedicated staff and prompt and unbiased assessment and settlement of claims, indicate the sound status of AIC. The existence of long term and trustworthy clientele and widespread contacts with the International Insurance Markets, conversant and responsive management and good financial relations can also be considered as the best indicators of its endurance.Payments of heavy claims within short period of time are the indicators of speed, accuracy and financial strength of AIC and it endeavor to respect the rights of its clients. The total gross premium for the year 1388(2009) was about IR Rials 3,141 Billion and IR Rials 1852 Billion claims have been paid with a Loss Ratio of 59%.

Alborz Field of Activities1- Performance and operation of Direct Insurance in Life And Non Life Assur-ances, in accordance with the license issued by the Central Insurance of Islamic Republic of Iran.2- Acceptance and cession of re insurances in the country and abroad within the framework of Central Insurance of Islamic Republic of Iran.3- Investments made from resources, like capital, Technical and Legal Reserves and savings within the framework of the Bill ratified by the High Council of Insurance.4- Company is allowed to enter into any operation including the establishment of subsidiaries, purchasing and selling other company shares with the transferring rights, and other trade and economic activities which are necessary for the development of the company.

Alborz AchievementThe following are the achievements from the year 2007 to 2009:Alborz Insurance Company has managed to achieve many of its set objectives in the insurance industry and among other executive institutions of the country in the recent years.Amongst its achievements, one can highlight the attainment of the prime status in the Insurance Industry according to the classifications set by the Central Insurance of the Islamic Republic of Iran in the year 2008.

Appreciation letter of the President of Bimeh Markazi Iran for obtaining the Prime Status for Customer Satisfaction.

Honorable Mr. Mohammad Ebrahim AminManaging Director of Alborz Insurance Co.

As reported by the deputy office of the President for Developing and Managing of Human resources, your company has acquired the premium position amongst other entities in the assessment of the level of customer satisfaction and service provision in 2007 and this achievement is worthy of applause.I herewith thank you for the continuous trend of improvement in the manner of service provision during the recent years and the elevation of the level of your company among all entities from the fourth position in 2006 to the first position in 2007. This has resulted from the efforts of your colleagues and

ALBO

RZ IN

SUR

AN

CE C

o.

1 2

Alborz Insurance Company (AIC) was established as a private entity on 21st

July 1959 with an initial capital of 750 Million Iranian Rials which was later increased to 260 Billion Iranian Rials. Recently, after privatization, the capital was once again increased to 400 Billion Iranian Rials, (40 Million Dollars). Keeping in mind the present market situation and considering. the fast growth in the local Insurance market, AIC is planning to increase its capital from 400 Billion IR Rials (40 Million Dollar)to 600 Billion IR Rials(60Million Dollar) with the primary aim of providing superior quality insurance services, generating diversity in insurance business and attaining customer satisfaction. Within a short period of commencing its activities, the company was able to obtain the confidence of owners of capital and commodities. The company installed and implemented Quality Management System in the technical insurance managements (Automobile, Fire, Marine, Engineering, Liability and Personal) in the year 2004, and succeeded receiving ISO9001-2000 certificate by BVQ I and approved by two Credit Institution UKAS, a British company, and COFRAG a French company. In the year 2005, the management of Data processing, Finance, Investment and economic survey and Reinsurance were enhanced to the system.With more than 50 Years of experience and a successful prior record, AIC continued its operations under the same name. Presently, with 50 Branches, 1524 Agents, 276 Brokers and about 1300 employees nationwide, AIC is well prepared and fully equipped to render insurance services to its customers. Today the importance of energy insurance has persuaded insurance companies to consider the subject more seriously and specially for the provision of suitable coverage.Having extended its activities in the field of risks relating to the energy sector, similar to other insurance fields, and in order to attend to the domestic demands for Energy Insurance coverage, AIC had expanded its domain by creating a special Committee called "Oil And Gas Committee" while launching a new specialist branch in southern Iran, in the region called Assalouyeh, which holds one of the largest Gas reserves in the world.Alborz Insurance Company being one of the most successful and the foremost insurance company was able to place itself among the Top Hundred entities of Iran as usual. AIC since several years, was able to maintain the foremost status in the local insurance market in different fields like providing customer oriented services with utmost efficiency, effective presence in capital market and promoting and utilizing IT, and was praised

for its activities by the Government, Members of the Islamic Consultative Assembly and other authorities in the country over several years. On 16/11/2009 AIC was the first State Owned company which got privatized and succeed in breaking the record for sales of its shares in its premier issue, and was able to exhibit itself as the foremost company in the stock market and register its name in the history of the country's Stock Exchange. AIC has recently received a Certificate of Customers Right Protection by the honorable Commerce Minister. The under mentioned report is an outline of the activities of AIC in the recent year, which resulted in its being ranked as the 91st amongst the 100 Foremost companies of Iran.Also, for four consecutive years, the company was able to attain the premier position for "Respecting and Attaining Customer Satisfaction" among all other private and state owned Banks and Insurance Companies in Iran, and was awarded the coveted "Merit Reward" by the Governor of Tehran Province. Furthermore, as per the opinion polls for comparing and regulating Customer Satisfaction carried out by the Deputy Office for Human Resources Development and Management of the President of Islamic Republic of Iran, AIC was able to obtain the first position among all administrative organizations.Being ranked first among all private and public insurance companies in five evaluation indices carried out by the Financial Supervision Management of the Central Insurance Company, for deployment of IT, Transparency in Financial Reporting, Presence and Proficiency in Capital Investment market, provides further reason for AIC to be proud of its achievements.Adequate financial and capital reserves, professional services of its dedicated staff and prompt and unbiased assessment and settlement of claims, indicate the sound status of AIC. The existence of long term and trustworthy clientele and widespread contacts with the International Insurance Markets, conversant and responsive management and good financial relations can also be considered as the best indicators of its endurance.Payments of heavy claims within short period of time are the indicators of speed, accuracy and financial strength of AIC and it endeavor to respect the rights of its clients. The total gross premium for the year 1388(2009) was about IR Rials 3,141 Billion and IR Rials 1852 Billion claims have been paid with a Loss Ratio of 59%.

Alborz Field of Activities1- Performance and operation of Direct Insurance in Life And Non Life Assur-ances, in accordance with the license issued by the Central Insurance of Islamic Republic of Iran.2- Acceptance and cession of re insurances in the country and abroad within the framework of Central Insurance of Islamic Republic of Iran.3- Investments made from resources, like capital, Technical and Legal Reserves and savings within the framework of the Bill ratified by the High Council of Insurance.4- Company is allowed to enter into any operation including the establishment of subsidiaries, purchasing and selling other company shares with the transferring rights, and other trade and economic activities which are necessary for the development of the company.

Alborz AchievementThe following are the achievements from the year 2007 to 2009:Alborz Insurance Company has managed to achieve many of its set objectives in the insurance industry and among other executive institutions of the country in the recent years.Amongst its achievements, one can highlight the attainment of the prime status in the Insurance Industry according to the classifications set by the Central Insurance of the Islamic Republic of Iran in the year 2008.

Appreciation letter of the President of Bimeh Markazi Iran for obtaining the Prime Status for Customer Satisfaction.

Honorable Mr. Mohammad Ebrahim AminManaging Director of Alborz Insurance Co.

As reported by the deputy office of the President for Developing and Managing of Human resources, your company has acquired the premium position amongst other entities in the assessment of the level of customer satisfaction and service provision in 2007 and this achievement is worthy of applause.I herewith thank you for the continuous trend of improvement in the manner of service provision during the recent years and the elevation of the level of your company among all entities from the fourth position in 2006 to the first position in 2007. This has resulted from the efforts of your colleagues and

Introduction of AIC the First State owned Insurance Co recently Privatized

3 4

Alborz Insurance Company (AIC) was established as a private entity on 21st

July 1959 with an initial capital of 750 Million Iranian Rials which was later increased to 260 Billion Iranian Rials. Recently, after privatization, the capital was once again increased to 400 Billion Iranian Rials, (40 Million Dollars). Keeping in mind the present market situation and considering. the fast growth in the local Insurance market, AIC is planning to increase its capital from 400 Billion IR Rials (40 Million Dollar)to 600 Billion IR Rials(60Million Dollar) with the primary aim of providing superior quality insurance services, generating diversity in insurance business and attaining customer satisfaction. Within a short period of commencing its activities, the company was able to obtain the confidence of owners of capital and commodities. The company installed and implemented Quality Management System in the technical insurance managements (Automobile, Fire, Marine, Engineering, Liability and Personal) in the year 2004, and succeeded receiving ISO9001-2000 certificate by BVQ I and approved by two Credit Institution UKAS, a British company, and COFRAG a French company. In the year 2005, the management of Data processing, Finance, Investment and economic survey and Reinsurance were enhanced to the system.With more than 50 Years of experience and a successful prior record, AIC continued its operations under the same name. Presently, with 50 Branches, 1524 Agents, 276 Brokers and about 1300 employees nationwide, AIC is well prepared and fully equipped to render insurance services to its customers. Today the importance of energy insurance has persuaded insurance companies to consider the subject more seriously and specially for the provision of suitable coverage.Having extended its activities in the field of risks relating to the energy sector, similar to other insurance fields, and in order to attend to the domestic demands for Energy Insurance coverage, AIC had expanded its domain by creating a special Committee called "Oil And Gas Committee" while launching a new specialist branch in southern Iran, in the region called Assalouyeh, which holds one of the largest Gas reserves in the world.Alborz Insurance Company being one of the most successful and the foremost insurance company was able to place itself among the Top Hundred entities of Iran as usual. AIC since several years, was able to maintain the foremost status in the local insurance market in different fields like providing customer oriented services with utmost efficiency, effective presence in capital market and promoting and utilizing IT, and was praised

for its activities by the Government, Members of the Islamic Consultative Assembly and other authorities in the country over several years. On 16/11/2009 AIC was the first State Owned company which got privatized and succeed in breaking the record for sales of its shares in its premier issue, and was able to exhibit itself as the foremost company in the stock market and register its name in the history of the country's Stock Exchange. AIC has recently received a Certificate of Customers Right Protection by the honorable Commerce Minister. The under mentioned report is an outline of the activities of AIC in the recent year, which resulted in its being ranked as the 91st amongst the 100 Foremost companies of Iran.Also, for four consecutive years, the company was able to attain the premier position for "Respecting and Attaining Customer Satisfaction" among all other private and state owned Banks and Insurance Companies in Iran, and was awarded the coveted "Merit Reward" by the Governor of Tehran Province. Furthermore, as per the opinion polls for comparing and regulating Customer Satisfaction carried out by the Deputy Office for Human Resources Development and Management of the President of Islamic Republic of Iran, AIC was able to obtain the first position among all administrative organizations.Being ranked first among all private and public insurance companies in five evaluation indices carried out by the Financial Supervision Management of the Central Insurance Company, for deployment of IT, Transparency in Financial Reporting, Presence and Proficiency in Capital Investment market, provides further reason for AIC to be proud of its achievements.Adequate financial and capital reserves, professional services of its dedicated staff and prompt and unbiased assessment and settlement of claims, indicate the sound status of AIC. The existence of long term and trustworthy clientele and widespread contacts with the International Insurance Markets, conversant and responsive management and good financial relations can also be considered as the best indicators of its endurance.Payments of heavy claims within short period of time are the indicators of speed, accuracy and financial strength of AIC and it endeavor to respect the rights of its clients. The total gross premium for the year 1388(2009) was about IR Rials 3,141 Billion and IR Rials 1852 Billion claims have been paid with a Loss Ratio of 59%.

Alborz Field of Activities1- Performance and operation of Direct Insurance in Life And Non Life Assur-ances, in accordance with the license issued by the Central Insurance of Islamic Republic of Iran.2- Acceptance and cession of re insurances in the country and abroad within the framework of Central Insurance of Islamic Republic of Iran.3- Investments made from resources, like capital, Technical and Legal Reserves and savings within the framework of the Bill ratified by the High Council of Insurance.4- Company is allowed to enter into any operation including the establishment of subsidiaries, purchasing and selling other company shares with the transferring rights, and other trade and economic activities which are necessary for the development of the company.

Alborz AchievementThe following are the achievements from the year 2007 to 2009:Alborz Insurance Company has managed to achieve many of its set objectives in the insurance industry and among other executive institutions of the country in the recent years.Amongst its achievements, one can highlight the attainment of the prime status in the Insurance Industry according to the classifications set by the Central Insurance of the Islamic Republic of Iran in the year 2008.

Appreciation letter of the President of Bimeh Markazi Iran for obtaining the Prime Status for Customer Satisfaction.

Honorable Mr. Mohammad Ebrahim AminManaging Director of Alborz Insurance Co.

As reported by the deputy office of the President for Developing and Managing of Human resources, your company has acquired the premium position amongst other entities in the assessment of the level of customer satisfaction and service provision in 2007 and this achievement is worthy of applause.I herewith thank you for the continuous trend of improvement in the manner of service provision during the recent years and the elevation of the level of your company among all entities from the fourth position in 2006 to the first position in 2007. This has resulted from the efforts of your colleagues and

your hard work. Hope that this trend also continues in the future and the relevant indices are enhanced.In reality, the dominance of Insurance Companies in honoring customers and providing satisfactory services to the clients is the best publicity for the Insurance Industry, eventually leading to the expansion of the industry.May the Almighty bestow his strength and determination upon you and your colleagues.

Javad Farshbaf MaherianPresident of Bimeh Markazi Iran.

The Letter of Appreciation by the President of Bimeh Markazi Iran for being chosen as the Foremost State-owned Insurance Company.

Honorable Mr. Mohammad Ebrahim Amin

Managing Director of Alborz Insurance Co.

Herewith I would like to express my gratitude to

you and your colleagues for attaining the foremost status amongst

State-Owned Insurance Companies during an assessment of Public insurance

companies from the view point of Financial indexes (extracted on the basis

of information stated in the Financial Reports for the year 2007). It is hoped

that the transition of the Insurance Industry from Tariff Supervision to

Non-tariff and financial supervision would experience an elevation in the

operational efficiency and capability of Insurance companies.

Undoubtedly the expansion of the country’s insurance industry and attainment

of a superior position, nationally and internationally, on the basis of the principle

of customer satisfaction and respect, would demand effort and unity of all

those involved in this industry.

Pray the Almighty bestows upon you and your colleagues the strength to

further promote the sacred aims of the Islamic Republic of Iran.

Javad. Farshbaf MaherianPresident of Bimeh Markazi Iran.

5 6

Alborz Insurance Company (AIC) was established as a private entity on 21st

July 1959 with an initial capital of 750 Million Iranian Rials which was later increased to 260 Billion Iranian Rials. Recently, after privatization, the capital was once again increased to 400 Billion Iranian Rials, (40 Million Dollars). Keeping in mind the present market situation and considering. the fast growth in the local Insurance market, AIC is planning to increase its capital from 400 Billion IR Rials (40 Million Dollar)to 600 Billion IR Rials(60Million Dollar) with the primary aim of providing superior quality insurance services, generating diversity in insurance business and attaining customer satisfaction. Within a short period of commencing its activities, the company was able to obtain the confidence of owners of capital and commodities. The company installed and implemented Quality Management System in the technical insurance managements (Automobile, Fire, Marine, Engineering, Liability and Personal) in the year 2004, and succeeded receiving ISO9001-2000 certificate by BVQ I and approved by two Credit Institution UKAS, a British company, and COFRAG a French company. In the year 2005, the management of Data processing, Finance, Investment and economic survey and Reinsurance were enhanced to the system.With more than 50 Years of experience and a successful prior record, AIC continued its operations under the same name. Presently, with 50 Branches, 1524 Agents, 276 Brokers and about 1300 employees nationwide, AIC is well prepared and fully equipped to render insurance services to its customers. Today the importance of energy insurance has persuaded insurance companies to consider the subject more seriously and specially for the provision of suitable coverage.Having extended its activities in the field of risks relating to the energy sector, similar to other insurance fields, and in order to attend to the domestic demands for Energy Insurance coverage, AIC had expanded its domain by creating a special Committee called "Oil And Gas Committee" while launching a new specialist branch in southern Iran, in the region called Assalouyeh, which holds one of the largest Gas reserves in the world.Alborz Insurance Company being one of the most successful and the foremost insurance company was able to place itself among the Top Hundred entities of Iran as usual. AIC since several years, was able to maintain the foremost status in the local insurance market in different fields like providing customer oriented services with utmost efficiency, effective presence in capital market and promoting and utilizing IT, and was praised

for its activities by the Government, Members of the Islamic Consultative Assembly and other authorities in the country over several years. On 16/11/2009 AIC was the first State Owned company which got privatized and succeed in breaking the record for sales of its shares in its premier issue, and was able to exhibit itself as the foremost company in the stock market and register its name in the history of the country's Stock Exchange. AIC has recently received a Certificate of Customers Right Protection by the honorable Commerce Minister. The under mentioned report is an outline of the activities of AIC in the recent year, which resulted in its being ranked as the 91st amongst the 100 Foremost companies of Iran.Also, for four consecutive years, the company was able to attain the premier position for "Respecting and Attaining Customer Satisfaction" among all other private and state owned Banks and Insurance Companies in Iran, and was awarded the coveted "Merit Reward" by the Governor of Tehran Province. Furthermore, as per the opinion polls for comparing and regulating Customer Satisfaction carried out by the Deputy Office for Human Resources Development and Management of the President of Islamic Republic of Iran, AIC was able to obtain the first position among all administrative organizations.Being ranked first among all private and public insurance companies in five evaluation indices carried out by the Financial Supervision Management of the Central Insurance Company, for deployment of IT, Transparency in Financial Reporting, Presence and Proficiency in Capital Investment market, provides further reason for AIC to be proud of its achievements.Adequate financial and capital reserves, professional services of its dedicated staff and prompt and unbiased assessment and settlement of claims, indicate the sound status of AIC. The existence of long term and trustworthy clientele and widespread contacts with the International Insurance Markets, conversant and responsive management and good financial relations can also be considered as the best indicators of its endurance.Payments of heavy claims within short period of time are the indicators of speed, accuracy and financial strength of AIC and it endeavor to respect the rights of its clients. The total gross premium for the year 1388(2009) was about IR Rials 3,141 Billion and IR Rials 1852 Billion claims have been paid with a Loss Ratio of 59%.

Alborz Field of Activities1- Performance and operation of Direct Insurance in Life And Non Life Assur-ances, in accordance with the license issued by the Central Insurance of Islamic Republic of Iran.2- Acceptance and cession of re insurances in the country and abroad within the framework of Central Insurance of Islamic Republic of Iran.3- Investments made from resources, like capital, Technical and Legal Reserves and savings within the framework of the Bill ratified by the High Council of Insurance.4- Company is allowed to enter into any operation including the establishment of subsidiaries, purchasing and selling other company shares with the transferring rights, and other trade and economic activities which are necessary for the development of the company.

Alborz AchievementThe following are the achievements from the year 2007 to 2009:Alborz Insurance Company has managed to achieve many of its set objectives in the insurance industry and among other executive institutions of the country in the recent years.Amongst its achievements, one can highlight the attainment of the prime status in the Insurance Industry according to the classifications set by the Central Insurance of the Islamic Republic of Iran in the year 2008.

Appreciation letter of the President of Bimeh Markazi Iran for obtaining the Prime Status for Customer Satisfaction.

Honorable Mr. Mohammad Ebrahim AminManaging Director of Alborz Insurance Co.

As reported by the deputy office of the President for Developing and Managing of Human resources, your company has acquired the premium position amongst other entities in the assessment of the level of customer satisfaction and service provision in 2007 and this achievement is worthy of applause.I herewith thank you for the continuous trend of improvement in the manner of service provision during the recent years and the elevation of the level of your company among all entities from the fourth position in 2006 to the first position in 2007. This has resulted from the efforts of your colleagues and

Written Premium in the year 2009, in comparison to the previous year.Alborz Insurance generated a premium amounting to IR Rials 3141 billion in the year 2009, as compared to IR Rials 2823 billion in the year 2008. Moreover the company forecasted that by the end of 2009/10, the generated Insurance Premium shall reach an amount of IR Rials 2955 billion IR.Rials.

Claims Paid in the year 2009, in comparison to the previous Fiscal Years.Alborz Insurance Company paid the claims amounting to IR Rials 1852 billion to its clients by the end of 2009/10, whereas this figure was IR Rials1579 billion in 2008/2009, and IR Rials 1219 billion in 2007/2008. The Company paid the lowest amount of claims in comparison to other local Insurance companies.

Our Major Energy Clients are as follows:N.I.O.CNATIONAL PETROCHEMICAL CO.NATIONAL IRANIAN OIL ENGINEERING AND CONSTRUCTION CO.MAPNA.IRANIAN OIL PIPELINE AND TELECOMMUNICATION COIRAN WATER AND POWER RESOURCES DEVELOPMENTNATIONAL PETROCHEMICAL CO.PAYANDAN COGHAED BASEER PETROCHEMICAL COMEHRVARZAN COFARAB COOIL DESIGNING AND CONSTRUCTION CO (N.I.O.R.D.C)IRANIAN OFFSHORE OIL CO (I.O.O.C)TASDID OFFSHORE DEVELOPMENT CO (N.I.O.E.C)JAHAN PARS COSAZEH CO.TANAVOUB COTOOS ASPHALT COMIDDLE EAST ENERGY DEVELOPMENT COP.O.G.CCONSORTIUM OF NARGAN, TECHNIMONT, GAMA AND DORRIZCONSORTIUM OF SINOPEC ENGINEERING INCORPORATION (SEI), SAZEHCONSULTANT AND OIL DESIGN AND CONSTRUCTION CO (O.D.C.C)SAKHTAREH FARDAO.T.C

Mohammad Ebrahim AminChairman & Managing Director

Mohammad Reza TaghvaeiMember of Board

(Incharge Of Distribution Network)

Mohammad Reza TaghvaeiMember of Board

(Incharge Of Distribution Network)

Hossein SalimiMember of BoardHossein Salimi

Member of BoardAbbas HajfathalihaMember of Board

Abbas HajfathalihaMember of Board

Seyed Rasool TajdarDeputy Managing Director(Finance & Administration)

Seyed Rasool TajdarDeputy Managing Director(Finance & Administration)

7 8

The first year of our life as a publically held company, as opposed to a government owned and operated company, proved to be a very smooth transition. Usually, when such changes take place, some fluctuations in company performance is expected. Alborz Insurance Co. did not go through such major fluctuations; on the contrary, our growth continued seamlessly with our change in ownership.Change from government ownership to private publically held ownership required great care so as to assure both our new shareholders and of course our customers that AIC will be better, faster and more efficient than before. Pre-planning such changes enabled us to go through this transition without any major negative changes to our standing in the Iranian market or to our portfolio.Our commitment to customer satisfaction which is the basis of customer loyalty in today’s highly competitive business environment has not changed and will always be a part of our corporate identity. For AIC customer satisfaction and preserving shareholder interests are not considered mutually exclusive, but actually, mutually inclusive. When balanced properly, as we have had it balanced for these past few years, no level of competition can drive into our market share and our market will always expand or create dissatisfaction for our shareholders.During this year we had 11% growth in our underwritten premiums while our assets also grew by more than 8%. We expanded our distribution channels as well. The number of our independent agents around the nation grew from 900 to 1400. This will enhance our position in the ever more competitive insurance market of Iran. As more insurance companies enter the market and competition intensifies, which we fully embrace and think of as a positive development for the long-term assurance of continuous growth and health of our national economy, AIC will also face formidable forces of the market more than before. Increasing the number of our agents, who are the primary distribution channels of our services and produce more than 80% of our premium, will expand selectively, so as to enable us to not only keep but also to enhance our position in the market.

Through enhanced monitoring of both the market and our agents we held our market share while many other companies lost market share to the newly formed insurance companies.

Our Comprehensive Insurance Software enables us to monitor activities throughout the nation with great precision and in real time. This system, developed by Iranian software firms, operates throughout the whole company and is our tool to monitor, guide and plan our activities around the country daily as well as providing us with a great tool to evaluate market changes and planning basis. We have made more investments in expanding this system by adopting the new (.net) platform. This will further enable us to respond to changes in our customer’s needs faster and with much more ease than before. This system will continue to grow and expand in the future as well.This year we showed that more than 50 years of ever expanding insurance business is not achieved by accident. Integration of management with operations and streamlining our business using some of the most up-to-date systems in the world enables us to look forward to a greater and brighter future to come. Mohammad Ebrahim Amin

Message from Chairman & CEO

9 10

12%

8%

1%10%

4% 1%14%

1%

49%

115

5146

12792

Structure

Underwritting Performance

The following table shows the premiums and paid claims

Class

Total

Marine

Fire

Auto

Auto TPL

Passenger Liability

Health

Accidents

Life

Eng & Miscl

218,890

365,541

332,425

664,008

64,466

218,163

46,180

138,653

420,014

2,468,340

2007

168,023

421,964

395,961

885,498

92,208

267,852

50,982

114,552

426,399

2,823,439

2008

126,724

391,248

521,648

985,330

111,293

278,208

46,248

129,447

551,434

3,141,580

(24.6)

(7.3)

31.7

11.3

20.7

3.9

(9.3)

13

29.3

11.3

4.0

12.5

16.6

31.4

3.5

8.9

1.5

4.1

17.6

100

1.5

8.0

12.2

48.8

1.2

14.2

0.7

3.6

9.8

100

2009

25,971

77,281

176,382

539,402

20,137

180,386

13,572

58,588

127,380

1,219,099

2007

25,065

174,867

195,507

640,246

21,699

227,409

15,563

83,978

195,007

1,579,341

2008

27,632

148,988

226,713

902,928

21,383

263,857

12,508

65,910

182,216

1,852,135

2009

Written Premiums

Million IR RLS

Premiums

Growth % Structure

Paid Claims

Million IR RLS

3000

2000

1000

02007 2008 2009

Total Premium 20092008

Eng

& M

iscl

Life

Acc

iden

ts

Hea

lth

Pas

seng

erLi

abili

ty

Fire

Mar

ine

Aut

o

Aut

o TP

L

0

100

200

400

500

600

700

800

900

1000

300

129

268278

111

885

985

168

422

522551

426396 391

Total Claim 20092008

Bill

ion

IR

Rls

1527

2552

2278

4%

12%

17%

Marine

Fire

Auto

Accidents

Life

Eng& Miscl

1%

4%

18%

Written Premiums Structure(2009-2010)

Technical reserves

Claims Structure(2009-2010)

1000

900

800

700

600

500

400

300

200

100

0

En

g &

Mis

cl

Lif

e

Ac

cid

en

ts

He

alt

h

Pa

sse

ng

er

Lia

bil

ity

Fir

e

Ma

rin

e

Bill

ion

IR R

lsB

illio

n IR

Rls

Au

to

Au

to T

PL

84661613

227264

21

640

903

2527

175227

182195 196

21

149

17%

31%

4%

9%

1%4%

18%

4%

12%

Auto TPL31%

4%

9%

Passenger LiabilityHealth

6%

14%

14%

Marine

Fire

Auto

Accidents

Life

Eng& Miscl

1%

4%

15%

Auto TPL32%

3%

9%

Passenger LiabilityHealth

11 12

Alborz Insurance CompanyBalance Sheet

As at 20th March 2009 (29/12/1388)(Million IRR)

1386

246,232

515,943

-

-

1,526,811

308,899

2,597,885

1388

192,298

342,067

169,029

103,951

2,552,455

388,434

3,748,234

1387

213,630

371,334

128,464

105,689

2,277,525

285,826

3,382,468

Liabilities

Accounts & notes payables

Reinsurance liabilities

Insurance liabilities

Proposed and payable dividends

Technical Provisions

Long-term liabilities

1386

260,000

34,891

72,188

91,794

73,573

532,446

1388

400,000

59,014

126,374

258,920

0

844,308

1387

260,000

59,013

84,250

127,848

65,809

596,920

Shareholder`s equity

Capital

Legal reserve

Capital reserve

Accumulated profit

Foreign currency exchange reserve

Liabilities and Shareholder`s equity

3,130,331 3,979,388 4,592,542

1386

109,679

319,312

1,211,837

112,631

104,785

820,178

451,909

3,130,331

1388

199,477

104,535

1,367,777

285,406

804,679

1,290,323

540,345

4,592,542

1387

163,407

344,095

1,288,549

155,200

661,600

883,195

483,342

3,979,388

Assets

Cash and cash equivalents

Accounts & notes receivables

Investments

Loans

Reinsurance receivables

Insurance receivables

Fixed assets

Total Assets

Alborz Insurance CompanyProfit & Loss Account

For the year ended 20th March 2009 (29/12/1388)(Million IRR)

1386

769,765

1,219,099

227,414

69,496

283,438

2,569,212

265,833

48,429

2,883,474

1388

1,020,086

1,852,135

325,847

90,320

139,784

3,428,172

411,186

(30,570)

3,808,788

1387

847,807

1,579,341

292,090

70,842

143,294

2,933,374

327,862

72,641

3,333,877

Reinsurance premiums

Claims paid

Commissions

Other underwriting expenses

Increase in technical Provisions

Total operating expensesPersonnel and administrative expenses

Investment depreciation

Total expenses

173,690

(20,929)

152,761

280,826

0

280,826

264,221

(22,999)

241,222

Net profit before tax

Tax

Net profit after tax

1386

83,284

32,666

-

115,950

(15,276)

(7,638)

(1,242)

0

91,794

1388

280,826

120,488

74,710

476,024

0

(42,124)

(113,620)

(61,360)

258,920

1387

164,031

91,794

-

255,825

(24,122)

(12,061)

(91,794)

0

127,848

Net profit

Opening balance of accumulated profit

Net adjustments during the year

Allocable profit

Legal reserves

Capital reserves

Dividend profit

Capital Increase

Accumulated profit at the end of the year

Profit Al location(Mil l ion IRR)

1386

2,468,340

85,850

309,298

16,298

2,879,786

176,147

1,231

3,057,164

1388

3,141,580

145,400

480,677

22,469

3,790,126

241,816

57,672

4,089,614

1387

2,823,439

67,091

453,975

12,515

3,357,020

236,797

4,281

3,598,098

Premiums

Reinsurance commissions

Reinsurer`s share of claims

Profit commissions

Total operating income

Investment income

Other income

Total income

13

E-Mail Address

Mr. Amin Mohammad Ebrahim

Mr. Tajdar Seyed Rasool

Mr. Taghvaei Mohammadreza

Mr. Tavakoli Hossein

Mr. Safarzadeh Ahmad

Mr. Torabizadeh Amirsasan

Mr. Afrasiabi Arsalan

Mr. Aghakhani Gholam Hossein

Mr. Aramoon Mahmood

Mr. Bazgirfard Ardeshir

Mr. Esfahani Javad

Mr. Gharagozlou Masoud

Mr. Hajian Saeed

Mr. Heidari Ehsan

Mr. Jolaei Hamid

Mr. Mehryari Aziz

Mr. Mirzaei Amir

Mr. Mohammadi Nosratullah

Mr. Mogharrab Alireza

Mr. Naghibi Mirmansour

Mr. Narimani Rasool

Mr. Parvaneh Iraj

Mr. Pourhassan Alireza

Mr. Pour Rahimi Mohammad

Mr. Safajo Naser

Mr. Salehi majid

Mr. Sharifian Majid

Mr. Vakili Javad

Chairman & Managing Director

Member of the Board & Deputy General Manager

Member of the Board

Reinsurance & International Affairs Deputy

Technical Deputy

Project & Planning Deputy

Human Resources Director

Market Development & Customer Affairs Director

Construction & Building Affairs Director

Liability Ins Director

Reinsurance Advisor

Engineering Director

Branch Affairs Director

Inspection Director

Agents Affairs Director

Marine Ins Director

Planning & Systems Analysis Director

Public Relations & International Affairs Director

Fire Insurance Director

Information Tecnology Director

Legal Office Director

Financial Director

Reinsurance Director

Life Insurance Director

Internal Audit Director

Motor Ins Director

Head of Technical Council

Investment & Economic Survey Director

88803776

88803773

88803778

88803773

88803773

88915734

88907949

88803816

88803789

88803790

88910827

88803790

88915731

88890731

88899925

88803852

88908212

88901977

88803801

88908810

88907979

88907841

88916881

88902784

88899923

88736959

88803782

88916886

88803771

88803772

88803767

88803772

88803772

88899880

88901980

88803830

88906129

88803795

88803765

88803795

88906625

88918150

88899923

88803851

88905268

88907976

88803808

88899880

88890797

88893447

88916881

88905127

88899926

88765187

88803765

88916893

Amin@bimehalborz.ir

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Taghvaei @ bimehalborz.ir

Tavakoli @ bimehalborz.ir

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