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2009

Annual Report

58th

ContentBoard of Directors’ Report 09

Independent Auditor’s Report 18

Balance Sheet 19

Income Statement 21

Changes in Shareholders’ Equity 22

Cash Flow Statement 23

Notes to Financial Statement 31

His MajestyKing Abdullah II Bin Al-Hussein

55

Our Branches:

United Arab EmiratesAbu Dhabi: Tel.: +971 2 6344800 Fax: +971 2 6330495Dubai: Tel.: +971 4 2698810 Fax: +971 4 2692174Sharjah: Tel.: +971 6 5395566 Fax: +971 6 5395556

KuwaitKuwait: Tel.: +965 2 454160 Fax: +965 2 454180

Contact Us:

Head Office3rd Circle - AmmanP.O.Box 279 Amman 11118 JordanTel.: +962 6 4634161 Fax: +962 6 4637905E-mail: [email protected]

Madina Branch - AmmanTel.: +962 6 4638107 Fax: +962 6 4646917E-mail: [email protected]

Aqaba Branch - AqabaTel.: +962 3 2039194 Fax: +962 3 2039193P.O.Box 1415 Aqaba 77110 Jordan

Kuwait

Amman

Dubai

Abu Dhabi

Sharjah

Branches

Aqaba

66

General Manager

Mr. Imad M. Abdel Khaleq

Auditors

Deloitte & Touche (M.E.)

Deputy General Manager

Finance & Administration

Secretary of the Board

Mr. Mustafa M. Dahbour

Board of Directors

Mr. Othman M. Bdair (Representing Arab Technical Constructions Co.starting from 15/3/2009)

H.E. Mr. Waleed M. Asfour(Starting from 15/3/2009)

Mr. Khaldun A. Abu Hassan(Representing Al-Mashreq Development & Marketing Co.till 15/3/2009)

Mr. Osama J. Sha’sha’a

Mr. Christian Kraut (Representing Munich Re Co.)

Mr. Shehadeh Sh. Twal

Mr. Imad M. Abdel Khaleq

Mr. Kamal Gh. Al-Bakri (Representing Al-Maseera Investment Co.)

Mr. Samih Madi

Mrs. Huda Bdair

Mr. Mohammed M. Ennab (Representing Arab Supply & Trading Co.)

Miss. Aya Kh. Abu Hassan(Starting from 15/3/2009)

Chairman

Deputy Chairman

Chairman

Director

Director

Director

Director

Director

Director

Director

Director

Director

Board of Directors’ Report

Letter from the Chairman

99

Dear Shareholders,

Peace be upon you.

The Board of Directors is pleased to welcome you to

the 58th Ordinary Meeting of the General Assembly

and to present its annual report for the financial year

ending on 31/12/2009.

The year 2009 was characterized by instability as a

result of the continuing global financial crisis and its

extended impact on the public and private economic

sectors.

This had a clear impact on the national economy,

represented by receding economic indicators, where

the economic growth rate during 2009 fell to 2.1%

compared to 4.5% in 2008, while public debt rose by

9.4% reaching $13 billion, foreign investments fell by

65%, exports fell by more than 20%, the budget

deficit increased to $1.26 billion due to lower

revenues resulting from the drop of foreign aid,

reduced tax returns, custom fees, real estate and

land registration fees, as well as increased expenses

mainly due to rising oil prices, and increased

government expenditure.

The crisis, which befell the Arab Gulf countries,

constituted an added pressure on the national

economy, represented by the decline of expatriates’

transfers and loss of job security due to shrinking job

opportunities, which has contributed to raising the

level of unemployment. Moreover, the Amman

Stock Exchange indicator fell by 8.15% during 2009,

and the market value of listed companies' shares fell

by nearly $3.95 billion, registering $31.92 billion at

the end of the year.

On the other hand, the year 2009 witnessed a very

important achievement when A.M. Best, one of the

most authoritative global insurance rating agencies,

assigned a rating of B++ (good) to JIC in recognition

of its professionalism and exceptional performance

in the provision of its insurance services at the local

and regional levels, and for maintaining this

performance under all circumstances, especially the

global economic crisis that had a negative impact on

the rating of many insurance companies in the

world.

This rating will provide JIC with a very important

strength factor, as it raises the level of its

competitiveness, enhances confidence, and opens

the door for regional expansion, being one of the ten

best insurance companies in the Arab world that had

received this rating.

Despite the difficult economic circumstances, JIC

has also maintained its performance level and

accomplished good results. Premiums have

increased by 3.7%, reaching JD40 million, from

which a technical profit of JD4.6million was

achieved. This has enhanced JIC’s production

capacity and its leading position in the Jordanian

insurance sector. JIC’s market share reached 9.5%,

while net profits reached JD3 million.

In this context, JIC’s business in the Kingdom of Saudi

Arabia had ceased entirely as of the beginning of

2009. Consequently, JIC lost major premiums, which

it will endeavor to replace from other locations.

However, to maintain its historical presence in Saudi

Arabia, JIC currently has a 12.2% share of the SR200

million capital of the Arabia Insurance Cooperative

Company, in which JIC is a founding member. This

Company has launched cooperative insurance

operations at the beginning of 2009. The market

In the name of God, the Most Merciful,the Most Gracious


1010

t value of its share reached SR25.9, (with a nominal

value of SR10 per share) by the end of 2009.

In 2009, JIC established the Aqaba branch, which

will become active at the beginning of 2010.

The unhealthy competition, especially in pricing,

that is occurring in the Jordanian insurance sector

draws on a huge question mark on the fate of this

sector and its ability to serve the national economy.

Maintaining invested capitals in this sector and

protecting them from decline and recession require

that insurance companies, through the Jordan

Insurance Federation, reconsider their policies and

coordinate to have balanced underwriting policies

that ensure the integrity and continuity of this sector.

We also hope that the convening 28th General Arab

Insurance Conference (GAIF), under the patronage

of HM King Abdullah II Bin Al-Hussein, in Jordan in

2010 will have a positive impact on the Jordanian

insurance sector, which holds the responsibility for

rendering this Conference a success through

preparation, sponsorship and presenting the

Jordanian insurance sector as a model to be adopted.

ReinsuranceIt is a well-known fact that global and regional crises

have a direct impact on reinsurance companies, and

therefore reinsurance contracts face major

difficulties year after year. Moreover, practices

exercised by local insurance companies in 2009,

especially companies that compete on the basis of

declining premiums and in a manner that does not

correspond to the nature of insured risks, have led to

an unprecedented hard-line approach by global

reinsurance companies, especially the major ones

that hold leading positions in the reinsurance sector.

However, because of its high level of professionalism

and its good historical relationship with re-insurers

that is based on trust and credibility, your Company

was able to renew its reinsurance treaties for 2010

with elite reinsurance companies and with better

conditions and rates than previous treaties and in a

manner that serves the best interest of both parties.

BranchesJIC’s branches in the United Arab Emirates and our

Agency in Kuwait have achieved high technical

results that reflect your Company’s exceptional

standing with its clients in those markets, despite all

the challenges and restrictions facing the insurance

business in such markets. Written premiums in

those branches reached JD7.1 million, being 17.85%

of JIC’s total production, of which net profits of

JD1.7 million were fulfilled, being 38.6% of JIC’s

profit before distribution.

Financial and Real Estate InvestmentsThe year 2009 witnessed a decline in financial

markets’ activity as well as unstable prices, especially

in the Amman Stock Exchange and the Palestinian

Financial Market. This has forced JIC to reduce its

investment activities, both sales and purchases,

opting instead to wait and hold on to strategic and

excellent shares in order to avoid price fluctuations

and maintain the portfolio within a limited margin

of change. We hope that market conditions will

improve and revive in 2010.

In 2009 the market value of JIC’s equity portfolio has

increased to JD37 million compared to JD27 million

in 2008, which has positively affected shareholders

equity by JD6.6 million.

In order to strengthen its investment base and the

strength of its financial solvency, JIC has increased

its real estate investments this year by purchasing

lands in good locations for good prices. It has taken

advantage of opportunities within the limits of its

financial capacity and the restrictions of the

Insurance Commission.

JIC continues to perform capital maintenance of its

buildings base with the purpose of upgrading them

and making them more suitable and more attractive

to tenants for good prices. We hope this process will

conclude in 2010 and the occupancy rate of the

buildings will exceed 95%, which would constitute a

good support for JIC’s net results.

1111

The Future Plan

1. Continue to expand horizontally by opening new branches in neighboring markets.

2. Continue to expand in existing markets.

3. Adhere to the Company’s strategy of preserving its leading position in the local market through a prudent and disciplined underwriting policy.

4. Train technical staff in line with JIC’s policy of expansion in order to maintain a high level of professionalism in the service of its clients.

5. Provide Bancassurance services with leading banks.

6. Pursue expansion through mergers and acquisitions.

7. Upgrade IT applications and develop the IT department.

8. Maintain JIC’s rating of B++ (good) and improving it.

9. Establish a Risk Management Unit.

In conclusion, the Board of Directors would like to extend its thanks and appreciation to all our employees and

staff who contributed to the success and accomplishments of the Company, and to all our clients and agents

for their continued trust and support, as well as our reinsurance partners for their devotion and loyalty.

We ask God Almighty to guide us towards success in the service of our national economy under the directives

of His Majesty King Abdullah II Bin Al-Hussein.

CHAIRMAN OF THE BOARD

Othman M. Bdair


Income Statement Information

1212

Insurance Premiums

2009Gross Written PremiumNet Earned PremiumInvestment ResultOther RevenueTotal RevenueNet Claims PaidOther ExpensesTotal Expenses Result Before Taxes

Net Result After Tax

“These statements are selective extracts from the English Financial Statement and should be read together with it.”

The overall premiums written by the Company during 2009 was distributed between lines of business as follows:

- Marine:Gross Written Premium during the year 2009 was JD 2,917 million compared to JD 3,706 million in 2008.Loss ratio in 2009 was 37.04% compared to 37.03% in 2008

- Fire & General Accidents:Gross Written Premium during the year 2009 was JD 12,849 million compared to JD 12,657 million in 2008.Loss ratio in 2009 was 66.70% compared to 34.96% in 2008

- Motor: Gross Written Premium during the year 2009 was JD 14,220 million compared to JD 13,571 million in 2008. Loss ratio in 2009 was 61.72% compared to 63.06% in 2008

- Life: Gross Written Premium during the year 2009 was JD 6,149 million compared to JD 5,142 million in 2008.Loss ratio in 2009 was 59.01% compared to 70.25% in 2008

- Medical: Gross Written Premium during the year 2009 was JD 4,074 million compared to JD 3,259 million in 2008.Loss ratio in 2009 was 53.220% compared to 51.210% in 2008.

2008 20062007 2005 27,506,936 14,371,309 (313,552)2,921,207

16,978,964 8,234,663 6,701,814

14,936,477 2,042,486

1,468,083

33,852,854 16,994,558

1,350,921 4,240,764

22,586,243 10,715,291 16,417,582 27,132,873 (4,546,630)

(5,399,565)

38,334,75017,744,127

6,582,9193,618,410

27,945,45610,705,879

7,708,96818,414,847

9,530,609

8,460,011

39,848,03318,786,929

1,595,9703,905,510

24,288,40911,122,650

9,246,14420,368,794

3,919,615

3,006,339

22,344,976 13,401,687 21,104,844

2,033,032 36,539,563

8,560,898 6,011,515

14,572,413 21,967,149

19,021,695

Balance Sheet Information

1313 “These statements are selective extracts from the English Financial Statement and should be read together with it.”

InvestmentReal EstateFinancial InvestmentOthersTotal AssetsShareholders' Equity

2009

Gross Written PremiumReinsurance GWP Share

Gross Claims PaidReinsurance Share

22,344,9768,665,450

11,210,1863,547,541

27,506,93612,370,465

14,133,3866,208,463

33,852,85415,482,154

15,381,7565,811,706

38,334,75020,436,321

15,522,0435,878,069

39,848,03321,049,828

19,647,1409,075,322

20062007 200520082009

50

40

30

20

10

0200720062005 2008 2009

Reinsurance GWP ShareGross Written Premium

Gross Claims Paid Reinsurance Share

JOD

Mill

ions

Year

Board of Directors’ Report

60,277,7577,529,438

52,659,82488,495

72,675,73943,394,742

33,783,7966,107,315

27,571,695104,786

48,843,43628,501,513

42,701,113 5,983,339

36,598,776 118,998

61,458,769 35,690,138

44,731,1156,049,552

38,611,22370,340

64,628,98540,634,829

53,468,71212,103,67741,287,168

77,86771,531,88748,140,795

20062007 20052008

Capital Growth

Technical Profit2008

2,145,5413,121,0553,316,7584,573,7404,641,8342009 20062007 2005

5

4

3

2

1

02009

Year

JOD

Mill

ions

Year

JOD

Mill

ions

30

25

20

15

10

5

020052001198719821952 1962 20092008

Paid-up Capital 1,100,0005,000,00010,000,000 400,000 100,00019872001

20,000,00030,000,00030,000,0002005

20082009 1982 1962 1952

2008200720062005

1414“These statements are selective extracts from the English Financial Statement and should be read together with it.”

Financial StatementsFor the Year Ending 31/12/2009

Independent Auditor’s Report

1818

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair

presentation of these financial statements in accordance with

International Financial Reporting Standards. This responsibility

includes: designing, implementing and maintaining internal

control relevant to the preparation and fair presentation of

financial statements that are free from material misstatement,

whether due to fraud or error; selecting and applying

appropriate accounting policies; and making accounting

estimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial

statements based on our audit. We conducted our audit in

accordance with International Standards on Auditing. Those

standards require that we comply with ethical requirements and

plan and perform the audit to obtain reasonable assurance

whether the financial statements are free from material

misstatement.

An audit involves performing procedures to obtain audit

evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the auditor’s

judgment, including the assessment of the risks of material

misstatement of the financial statements, whether due to fraud

or error. In making those risk assessments, the auditor considers

internal control relevant to the Company’s preparation and fair

presentation of the financial statements in order to design audit

procedures that are appropriate in the circumstances, but not

for the purpose of expressing an opinion on the effectiveness of

the Company’s internal control. An audit also includes

evaluating the appropriateness of accounting policies used and

the reasonableness of accounting estimates made by

management, as well as evaluating the overall presentation of

the financial statements.

We believe that the audit evidence we have obtained is sufficient

and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all

material respects, the financial position of Jordan Insurance

Company as of December 31, 2009, and its financial

performance and its cash flows for the year then ended in

accordance with the International Financial Reporting

Standards. We recommend that the General Assembly of

Shareholders approves these financial statements.

Explanatory Matter

Without qualifying our opinion, as stated in Note (13) to the

financial statements, the Company settled its income tax for its

branches in Saudi Arabia until the year 2005 and filed its Zakah

Tax returns for the years 2006 and up to the year 2008 but no

final tax settlement has been reached. However, in the opinion

of the Company’s management and its tax consultant, the

income tax provision is sufficient to cover the tax liabilities for

the unsettled years as of the financial statements date.

Report on Legal Requirements

The Company maintains proper accounting records and the

accompanying financial statements are in agreement therewith and

with the financial data presented in the Board of Directors' report.

The accompanying financial statements are a translation of the

statutory financial statements which are in the Arabic language and

to which reference should be made.

Amman- Jordan Deloitte & Touche (M.E.) – Jordan

February 11, 2010

We have audited the accompanying financial statements of Jordan Insurance Company, which comprise of the statement of financial position as of December 31, 2009, statement of income, statement of comprehensive income, statement of changes in shareholders’ equity and statement of cash flow for the year then ended, and a summary of significant accounting policies and other explanatory notes.

AM/7953

To the General Assembly

Shareholders of Jordan Insurance Company

(A Public Limited Shareholding Company)

Amman – Jordan.

Financial Statements


Balance Sheet

To the General Assembly of Shareholders of

Jordan Insurance Company Plc.

Amman - Jordan

Deposits at banks

Trading investments

Available investments for sale

Held investments to maturity

Property investments

Loans and advances of the life department

Total Investments

Cash on hand and at banks

Checks under collection and notes receivable

Accounts receivable - net

Insurance companies accounts - debit

Assets deferred tax

Fixed assets - net

Other assets - net

Disposed assets

TOTAL ASSETS

3

4

5

6

7

8

9

10

11

12

13

14

15

10,306,257

638,475

26,394,052

1,272,439

6,049,552

70,340

44,731,115

2,625,077

1,015,118

9,409,076

1,936,757

243,304

1,315,635

940,779

2,412,124

64,628,985

3,235,953

538,587

36,512,628

1,000,000

12,103,677

77,867

53,468,712

2,326,830

944,594

8,767,055

3,274,949

371,028

1,231,362

1,147,357

-

71,531,887

Note

NumberAssets

JD JD

31 December

2009 2008



Note

NumberLiabilities

Mr. Othman M. BdairChairman

H.E. Waleed M. AsfourDeputy Chairman

16

17

18

19

13

20

21

6,773,190

5,403,086

1,509,802

255,000

13,941,076

869,657

3,848,875

785,251

1,569,165

561,459

-

2,418,671

23,994,156

30,000,000

6,484,627

(1,989,054)

6,139,256

40,634,829

64,628,985

6,875,680

5,717,708

1,418,588

400,000

14,411,976

2,590,028

4,032,884

636,041

1,004,466

664,356

51,341

-

23,391,092

30,000,000

6,889,271

6,260,573

4,990,951

48,140,795

71,531,887

JD JD

31 December

2009 2008

Unearned premiums provision - net

Outstanding claims provision -net

Accumulated mathematical reserve - net

Other technical provisions

Total Insurance Contract Liabilities

Accounts payable

Insurance companies accounts - credit

Other provisions

Income tax provision

Other liabilities

Liabilities deferred tax

Liabilities directly related to the disposed assets

Total Liabilities

SHAREHOLDERS' EQUITY

Authorized and paid - up capital

Statutory reserve

Cumulative change in fair value

Retained earnings

Total Shareholder Equity

TOTAL LIABILITIES AND SHAREHOLDERS EQUITY


Income Statement for the Year Ended



Amman - Jordan

222324

25+26

25

26

NoteNumber


33,192,5225,142,228

16,918,4943,517,827

17,898,429(126,990)

(27,312)17,744,127

2,406,052446,074193,898

6,582,919572,386

27,945,456

18,047,6272,525,584

495,9955,878,069

10,139,969565,910

4,131,471308,092836,090621,187

16,602,719545,967237,799220,757202,307

-229,716375,582

1,812,1289,530,609

(1,064,050) 8,466,559

(6,548)8,460,011

33,699,522 6,148,511

16,576,291 4,473,537

18,798,205 (102,490)

91,214 18,786,929

2,228,850 613,562 250,994

1,595,970 812,104

24,288,409

22,503,761 2,856,621 236,210

9,075,322 10,808,028

314,622 4,522,507

316,183 912,222 708,845

17,582,407 648,329 229,273 259,635 166,983

1,129,028 -

353,139 2,786,387 3,919,615 (913,276)

3,006,339 -

3,006,339

8,460,011

(3,515,320)4,944,691

3,006,339

8,249,627 11,255,966

Comprehensive Income Statement

Net income

Gross income items:

Cumulative change in fair value for year after tax

Net Income for the Year

JD JD

31 December 2009 2008

JD JD

For the year ended 31 December 2009 2008

Revenues:Direct insurance - non life

Direct insurance - life

Deduct: Reinsurance share - non life

Reinsurance share - life

Net Written PremiumsChange in unexpired risks provision

Change in mathematical provision

Net Earned Premium IncomeCommissions received

Issuing fees

Interests revenue

Income from financial assets and investments - net

Other revenues

Total RevenuesClaims, Losses, ExpensesClaims paid

Subtract: recoveries

Add: maturity & surrender of policies

Reinsurance share

Net Claims PaidChange in outstanding provision

Allocated administrative expenses

Excess-of-loss premium

Commissions paid

Other expenses

Cost of Claims IncurredEmployee expenses undistributed

Depreciation & amortization expenses

Unallocated administrative and general expenses

Provision for doubtful debts

Impairment loss in fair value

Fund expenses

Other expenses

Total ExpensesNet Income Before Income Tax from Continued Operations Provisions for income taxNet Income Before Income TaxNet income from discontinued operations - after income tax

Net Income After Tax

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Consolidated Statements of Changes in Shareholders’ Equity

Jord

an

In

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om

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ny

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ub

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JD JD JD JD

NoteNumber

Authorized andPaid-upCapital

StatutoryReserve

Retained(Losses)Earnings Total

VoluntaryReserve

Cumulative Change

In Fair Value

31/12/2009

Balance - beginning of the year

Net income for the year



Comprehensive income for the year

Appropriated from profit to reserves

Dividends paid throughout the year

Balance - End of the Year

31/12/2008

Balance - Beginning of the year

Net income for the year


Comprehensive income for the year

Appropriated from profit to reserves

Balance - End of the Year

JDJD

30,000,000

-

-

-

-

-

-

30,000,000

30,000,000

-

-

-

-

30,000,000

6,484,627

-

-

-

-

404,644

-

6,889,271

5,502,224

-

-

-

982,403

6,484,627

6,139,256

3,006,339

-

-

3,006,339

(404,644)

(3,750,000)

4,990,951

(4,738,352)

8,460,011

-

8,460,011

2,417,597

6,139,256

(1,989,054)

-

9,378,655

(1,129,028)

8,249,627

-

-

6,260,573

1,526,266

-

(3,515,320)

(3,515,320)

-

(1,989,054)

-

-

-

-

-

-

-

-

3,400,000

-

-

-

(3,400,000)

-

40,634,829

3,006,339

9,378,655

(1,129,028)

11,255,966

-

(3,750,000)

48,140,795

35,690,138

8,460,011

(3,515,320)

4,944,691

-

40,634,829

Fina

ncia

l Sta

tem

ents



Cash Flow Statement



Amman - Jordan

9,530,609

237,799202,307

75,609 -

(51,756) -

1,242,430971,806133,713

- 12,342,517

(29,187)

(2,600,397) (704,424)

(2,592,331) (219,782)

210,396

760,234 11,983

(178,594)7,000,415

(1,624,639) (22,870)

(122,244) (55,000)

5,175,662

940,318 (3,179,629)

202,500 (14,212)

1,912,834 - -

(138,189)

- 2,159,887

800,000 2,959,887

7,997,3603,146,132

11,143,492

3,919,615

229,273166,983111,888178,215 (1,045)

1,129,028 102,490 314,622

(91,214)145,000

6,204,855

70,524 475,038

(1,338,192) (78,327)

(206,578)

1,720,371 184,009 (68,741) 105,895

7,068,854 (1,605,699)

(59,175) (133,182)

(55,000)5,215,798

78,110 (2,946,636)

272,439 (7,527)

(6,198,080) 2,412,124

(2,418,671) (8,808,241)

(3,697,998) - -

(3,697,998) (7,290,441)11,143,4923,853,051

2929

JD JD

31 December

2009 2008

CASH FLOWS FROM OPERATING ACTIVITIES:Net income before income tax fees

Adjustment for:

Depreciation & amortization expenses

Doubtful debts provision

Provision for staff end - service indemnity

Change in fair value for trading investment

Real estate investment return


Unearned premiums provision - net

Outstanding claims provision - net

Mathematical provision - net

Various technical provision - net

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 Liabilities:Accounts payable

Insurance companies accounts

Various provision

Other liabilities

Net Cash Flows from Operating Activities Before TaxIncome tax paid

Staff end-of-service indemnity paid

Amount paid from the scientific research and technical training fund reserve

Board of Directors' remuneration paid

Net Cash Flows from Operating ActivitiesCASH FLOWS FROM INVESTING ACTIVITIES:Deposits at banks

Investments available for sale

Investments held to maturity

Loans of the life department

Property investments & fixed assets - net

Disposed assets

Disposed liabilities

Net Cash Flows (Used in) Investing ActivitiesCASH FLOWS FROM FINANCING ACTIVITIES:Dividends paid

Due to bank

Due to short-term loan

Net Cash Flows (Used in) Financing ActivitiesNet increase (decrease) in cash

Cash on hand and at banks - beginning of the year

Cash On Hand And At Banks - End of the Year



Underwriting Profit (Loss) Account for

the Motor Department for the Period Ended 31st December



Amman - Jordan

DescriptionWritten PremiumsDirect insurance

Faculrative reinsurance accepted

Local reinsurance share

Foreign reinsurance share

Net Written PremiumsOpening BalanceUnearned premium provision

Deduct: reinsurance Share

Net Unearned Premium ProvisionEnding BalanceUnearned premium provision

Deduct: reinsurance share

Net Unearned Premium ProvisionChange in Unexpired Risks ProvisionNet Earned Premium IncomeClaims paid

Salvage and subrogation



Net Claims PaidClosing Outstanding Claims ProvisionReported

IBNR

Deduct : reinsurance share

Net Outstanding Claims ProvisionOpening Outstanding Claims ProvisionReported

IBNR


Net Outstanding Claims ProvisionChange in Outstanding ProvisionCost of Claims IncurredNet Earned Premium IncomeCost of Claims IncurredAddCommissions received

Issuing fees

Other revenues

Total RevenuesDeductCommissions paid



Other expenses

Total Expenses

Underwriting Profit (Loss)

12,773,142797,377382,717

57,96713,129,835

6,224,000278,689

5,945,311

6,247,879188,897

6,058,982(113,671)

13,016,16410,709,720

2,426,429136,800198,128

7,948,363

4,423,606132,473183,421

4,372,658

4,240,695118,953246,394

4,113,254259,404

8,207,76713,016,164

8,207,767

7,15269,58430,687

4,915,820

412,137212,361

1,957,477175,747

2,757,722

2,158,098

5,562,596--

57,9675,504,629

2,587,98630,397

2,557,589

2,843,66230,056

2,813,606(256,017)5,248,6123,785,632

976,914728

179,7732,628,217

1,592,73243,80437,000

1,599,536

1,431,40835,583

202,3941,264,597

334,9392,963,1565,248,6122,963,156

4,3281,871

-2,291,655

303,355141,597840,362

-1,285,314

1,006,341

7,210,546797,377382,717

-7,625,206

3,636,014248,292

3,387,722

3,404,217158,841

3,245,376142,346

7,767,5526,924,0881,449,515

136,07218,355

5,320,146

2,830,87488,669

146,4212,773,122

2,809,28783,37044,000

2,848,657(75,535)

5,244,6117,767,5525,244,611

2,82467,71330,687

2,624,165

108,78270,764

1,117,115175,747

1,472,408

1,151,757

12,940,4911,279,321

425,72334,992

13,759,097

6,247,879188,897

6,058,982

6,287,720224,308

6,063,412(4,430)

13,754,66711,025,142

2,723,628100,017(20,907)

8,222,404

4,532,750137,040195,848

4,473,942

4,423,606132,473183,421

4,372,658101,284

8,323,68813,754,667

8,323,688

8,94095,068

239,1205,774,107

423,930201,183

2,204,807280,618

3,110,538

2,663,569

5,018,478--

34,9924,983,486

2,843,66230,056

2,813,606

2,518,25322,922

2,495,331318,275

5,301,7613,982,0151,070,106

-(14,431)

2,926,340

1,416,16648,77262,553

1,402,385

1,592,73243,80437,000

1,599,536(197,151)2,729,1895,301,7612,729,189

8,94012,137(4,169)

2,589,480

260,19972,868

972,022-

1,305,089

1,284,391

7,922,0131,279,321

425,723-

8,775,611

3,404,217158,841

3,245,376

3,769,467201,386

3,568,081(322,705)8,452,9067,043,1271,653,522

100,017 (6,476)

5,296,064

3,116,58488,268

133,2953,071,557

2,830,87488,669

146,4212,773,122

298,4355,594,4998,452,9065,594,499

- 82,931

243,2893,184,627

163,731128,315

1,232,785280,618

1,805,449

1,379,178

JD

Total

JD

2009

Abroad

JD

Jordan

JD

Total

JD

2008

Abroad

JD

Jordan




the Marine Department for the Period Ended 31st December



Amman - Jordan














IBNR



IBNR



Issuing fees

Other revenues




Other expenses

Total Expenses


3,601,033105,187

90,6022,820,079

795,539

649,499479,208170,291

536,777377,677159,100

11,191806,730

1,384,60913,619

1,1191,192,836

177,035

1,615,5362,951

1,343,459275,028

1,829,0354,824

1,680,549153,310121,718298,753806,730298,753

751,671101,853

7,1381,368,639

118,58021,304

406,31014,937

561,131

807,508

1,071,514--

803,906267,608

133,57479,38654,188

156,70492,04164,663

(10,475)257,133

82,3022,405

-36,59343,304

689,429722

573,829116,322

45,061902

28,18717,77698,546

141,850257,133141,850

212,939(1,598)

-326,624

67,1687,166

100,284-

174,618

152,006

2,529,519105,187

90,6022,016,173

527,931

515,925399,822116,103

380,073285,636

94,43721,666

549,5971,302,307

11,2141,119

1,156,243133,731

926,1072,229

769,630158,706

1,783,9743,922

1,652,362135,534

23,172156,903549,597156,903

538,732103,451

7,1381,042,015

51,41214,138

306,02614,937

386,513

655,502

2,834,23282,85360,662

2,446,763409,660

536,777377,677159,100

474,914389,589

85,32573,775

483,4352,742,158

32,909655,624

1,852,178201,447

1,779,1883,346

1,529,867252,667

1,615,5362,951

1,343,459275,028(22,361)179,086483,435179,086

593,13720,42487,760

1,005,670

112,41230,000

292,93712,230

447,579

558,091

970,227--

830,019140,208

156,70492,04164,663

98,57669,78128,79535,868

176,076697,998

666-

581,726115,606

66,4281,915

46,49521,848

689,429722

573,829116,322(94,474)

21,132176,076

21,132

194,908952

(2,155)348,649

74,69710,26899,829

-184,794

163,855

1,864,00582,85360,662

1,616,744269,452

380,073285,636

94,437

376,338319,808

56,53037,907

307,3592,044,160

32,243655,624

1,270,45285,841

1,712,7601,431

1,483,372230,819

926,1072,229

769,630158,706

72,113157,954307,359157,954

398,22919,47289,915

657,021

37,71519,732

193,10812,230

262,785

394,236

JD

Total

JD

2009

Abroad

JD

Jordan

JD

Total

JD

2008

Abroad

JD

Jordan




the Fire Department for the Period Ended 31st December



Amman - Jordan














IBNR



IBNR



Issuing fees

Other revenues




Other expenses

Total Expenses


9,007,9841,828,5302,000,1258,386,201

450,188

3,023,2592,834,103

189,156

4,027,7803,850,488

177,29211,864

462,0521,119,738

79,12563,470

823,205153,938

3,248,2802,473

2,988,927261,826

1,699,0725,539

1,481,514223,097

38,729192,667462,052192,667

1,327,937134,273

-1,731,595

152,06574,427

1,029,68656,362

1,312,540

419,055

721,3603,689

-617,716107,333

321,621274,489

47,132

268,728231,108

37,6209,512

116,845153,637

45,864-

79,20528,568

79,693476

67,22212,947

144,5871,081

121,66424,004

(11,057)17,511

116,84517,511

175,466(3,749)

-271,051

59,38115,94379,219

-154,543

116,508

8,286,6241,824,8412,000,1257,768,485

342,855

2,701,6382,559,614

142,024

3,759,0523,619,380

139,6722,352

345,207966,101

33,26163,470

744,000125,370

3,168,5871,997

2,921,705248,879

1,554,4854,458

1,359,850199,093

49,786175,156345,207175,156

1,152,471138,022

-1,460,544

92,68458,484

950,46756,362

1,157,997

302,547

JD

Total

JD

2009

Abroad

JD

Jordan

JD

Total

JD

2008

Abroad

JD

Jordan

8,523,9232,172,2292,596,9017,598,515

500,736

4,027,7803,850,488

177,292

3,975,1503,786,694

188,456(11,164)489,572

2,212,94181,827

145,1671,780,767

205,180

9,278,2883,012

8,796,376484,924

3,248,2802,473

2,988,927261,826223,098428,278489,572428,278

1,300,136136,078

68,6401,566,149

155,72385,000

783,33956,477

1,080,539

485,610

800,35337,75336,259

684,645117,202

268,728231,108

37,620

318,777268,053

50,724(13,104)104,098

87,45277,40331,486

(31,679)10,242

93,542140

84,4729,210

79,693476

67,22212,947(3,737)

6,505104,098

6,505

182,280594

(3,552)276,915

68,91617,58674,566

-161,068

115,847

7,723,5702,134,4762,560,6416,913,870

383,535

3,759,0523,619,380

139,672

3,656,3733,518,641

137,7321,940

385,4752,125,489

4,424113,681

1,812,446194,938

9,184,7462,872

8,711,904475,714

3,168,5871,997

2,921,705248,879226,835421,773385,475421,773

1,117,856135,484

72,1921,289,234

86,80767,414

708,77356,477

919,471

369,763




the Liability Department for the Period Ended 31st December



Amman - Jordan














IBNR



IBNR



Issuing fees



Other expenses

Total Expenses


1,504,30973,32381,140

1,469,11827,374

940,506927,526

12,980

979,348966,364

12,984(4)

27,37021,285

6,4111,161

10,1103,603

208,94460

167,54041,464

155,052-

126,90128,15113,31316,91627,37016,916

231,81115,878

258,143

7,466160,127

2,576170,169

87,974

34,955--

26,2868,669

18,30915,566

2,743

25,61020,622

4,988(2,245)

6,424-----

2,400-

2,160240

2,400-

2,160240

--

6,424-

10,21968

16,711

4,8493,670

-8,519

8,192

1,469,35473,32381,140

1,442,83218,705

922,197911,960

10,237

953,738945,742

7,9962,241

20,94621,285

6,4111,161

10,1103,603

206,54460

165,38041,224

152,652-

124,74127,91113,31316,91620,94616,916

221,59215,810

241,432

2,617156,457

2,576161,650

79,782

1,446,869109,880111,347

1,415,47829,924

979,348966,364

12,984

791,692776,889

14,803(1,819)28,10538,11018,257

-14,326

5,527

648,31392

599,89548,510

208,94460

167,54041,464

7,04612,57328,10512,573

176,48513,503

205,520

6,582159,724

3,573169,879

35,641

44,999--

35,3989,601

25,61020,622

4,988

20,39015,700

4,690298

9,899-----

2,400-

2,160240

2,400-

2,160240

--

9,899-

13,367185

23,451

5,9994,814

-10,813

12,638

1,401,870109,880111,347

1,380,08020,323

953,738945,742

7,996

771,302761,189

10,113(2,117)18,20638,11018,257

-14,326

5,527

645,91392

597,73548,270

206,54460

165,38041,224

7,04612,57318,20612,573

163,11813,318

182,069

583154,910

3,573159,066

23,003

JD

Total

JD

2009

Abroad

JD

Jordan

JD

Total

JD

2008

Abroad

JD

Jordan



Underwriting Profit (Loss) Account for the

Other Classes Department for the Period Ended 31st December



Amman - Jordan













IBNR



IBNR



Issuing fees



Other expenses

Total Expenses


242,7472,108

29,347211,292

99,62218,68080,942

107,16519,04988,116(7,174)

204,11849,729

--

22,43527,294

189,405455

115,49274,368

153,057-

84,28968,768

5,60032,894

204,11832,894

10,6951,041

182,960

16,99224,681

3,67745,350

137,610

189,538-

4,945184,593

86,59211,27375,319

91,53911,03780,502(5,183)

179,41022,487

---

22,487

45,324375

-45,699

58,956-

10,36048,596(2,897)19,590

179,41019,590

1,978113

161,911

15,74019,293

-35,033

126,878

53,2092,108

24,40226,699

13,0307,4075,623

15,6268,0127,614

(1,991)24,70827,242

--

22,4354,807

144,08180

115,49228,669

94,101-

73,92920,172

8,49713,30424,70813,304

8,717928

21,049

1,2525,3883,677

10,317

10,732

JD

Total

JD

2009

Abroad

JD

Jordan

JD

Total

JD

2008

Abroad

JD

Jordan

236,0071,609

39,085195,312

107,16519,04988,116

97,15113,40583,746

4,370199,682

21,944---

21,944

279,202366

189,49390,075

189,405455

115,49274,36815,70737,651

199,68237,651

12,8391,296

176,166

14,03731,174

5,26150,472

125,694

170,602-

5,217165,385

91,53911,03780,502

76,4612,173

74,2886,214

171,59921,944

---

21,944

39,966366

-40,332

45,324375

-45,699(5,367)16,577

171,59916,577

2,087157

157,266

12,38324,479

-36,862

120,404

65,4051,609

33,86929,927

15,6268,0127,614

20,69011,232

9,458(1,844)28,083

-----

239,236-

189,49349,743

144,08180

115,49228,66921,07421,07428,08321,074

10,7521,139

18,900

1,6546,6955,261

13,610

5,290




the Medical Department for the Period Ended 31st December



Amman - Jordan












IBNR



IBNR



Issuing fees

Other revenues



Other expenses

Total Expenses


3,155,930102,960

1,599,0901,659,800

437,087189,567247,520

519,840243,124276,716(29,196)

1,630,6041,890,018

130,2541,029,499

730,265

206,403436,676418,001225,078

295,57355,769

230,967120,374104,704834,969

1,630,604834,969

28,86494,286

119,3441,038,129

71,911234,452286,682593,045

445,084

142,287-

86,93555,352

5,3003,0362,264

54,15243,38310,769(8,505)46,847

182,681130,254

11,42940,998

----

16,726-

13,4673,259

(3,259)37,73946,84737,739

28,81318,557

-56,478

1,85221,748

6,98930,589

25,889

3,013,643102,960

1,512,1551,604,448

431,787186,531245,256

465,688199,741265,947(20,691)

1,583,7571,707,337

-1,018,070

689,267

206,403436,676418,001225,078

278,84655,769

217,500117,115107,963797,230

1,583,757797,230

5175,729

119,344981,651

70,059212,704279,693562,456

419,195

3,952,186121,530

1,845,2162,228,501

519,840243,124276,716

828,235388,298439,938

(163,222)2,065,2792,699,656

-1,545,9511,153,706

128,314242,477200,225170,566

206,403436,676418,001225,078(54,512)

1,099,1942,065,2791,099,194

60,30285,28719,306

1,130,981

94,249422,390313,069829,708

301,273

72,145-

44,88227,263

54,15243,38310,769

28,31323,674

4,6396,130

33,39351,406

-41,13310,273

----

-----

10,27333,39310,273

60,016--

83,136

7514,941

7,77922,795

60,341

3,880,041121,530

1,800,3342,201,238

465,688199,741265,947

799,923364,624435,299

(169,352)2,031,8862,648,250

-1,504,8171,143,433

128,314242,477200,225170,566

206,403436,676418,001225,078(54,512)

1,088,9212,031,8861,088,921

28785,28719,306

1,047,845

94,174407,449305,290806,913

240,932

JD

Total

JD

2009

Abroad

JD

Jordan

JD

Total

JD

2008

Abroad

JD

Jordan




the Life Department for the Period Ended 31st December



Amman - Jordan





Net Written PremiumsOpening BalanceMathematical provision


Net Mathematical ProvisionEnding BalanceMathematical provision


Net Mathematical ProvisionChange in Mathematical ProvisionNet Earned Premium IncomeClaims paid

Maturity & surrender of policies



Net Claims PaidEnding BalanceReported


Net Outstanding Claims ProvisionOpening BalanceReported


Net Outstanding Claims ProvisionChange in outstanding provisionCost of Claims IncurredNet Earned Premium IncomeCost of Claims IncurredAddCommissions received

Issuing fees

Investment income attributable to U/W

Other revenues




Other expenses

Total ExpensesUnderwriting Profit (Loss)

4,344,600 797,628 694,850

2,822,977 1,624,401

1,708,397 225,907

1,482,490

1,971,185 461,383

1,509,802 (27,312)

1,597,089 2,872,528

495,995 1,626,522

642,530 1,099,471

600,677 448,013 152,664

508,973 378,751 130,222

22,442 1,121,913 1,597,089 1,121,913

47,922 29,159

322,108 100,930 975,295

56,939 26,389

318,738 54,817

456,883 518,412

5,000,088 1,148,423 1,035,895 3,437,642 1,674,974

1,971,185 461,383

1,509,802

1,931,003 512,415

1,418,588 91,214

1,766,188 3,763,810

236,210 80,375

2,921,825 997,820

721,908 524,884 197,024

600,677 448,013 152,664

44,360 1,042,180 1,766,188 1,042,180

77,010 261,906 180,069

- 1,242,993

105,289 (24,535)628,136

62,152 771,042 471,951

JD

Jordan

JD

Jordan

20082009

Notes To Financial Statements

3131

1. General a. The Company was established in 1951 and is registered as a Jordanian Public Shareholding Company under Number (11) with a paid-up capital of JD 100,000. 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 (National Union) 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.

The Company's capital was raised gradually with the latest increase in 2006, in which the authorized company’s capital was raised by JD 10,000,000 to reach JD 30,000,000 divided between 30,000,000 shares.

The Company is involved in various insurance activities and has branches in Riyadh, Jeddah, Khobar, Abu Dhabi, Sharjah, Dubai and marketing insurance policies in Kuwait through an agency.

b. The financial statements were approved by the Board of Directors on February 5 2009 subject to the approval of the General Assembly of Shareholder.

2. Accounting Policiesa. Basis of Preparation of the Financial StatementsThe attached financial statements have been prepared in accordance with the forms determined by the Insurance Regulatory Commission.

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and related interpretations at December 31, 2004 and accounting policies adopted in the last audited financial statements.

- The International Financial Reporting Standards Board (IFRSB) issued amendments to the accounting standards and new international financial standards, which have become valid effective from January 1, 2005 and issued amendments to the accounting standards and new international financial standards which have become valid effective from January 1, 2006/2007. They had not been applied until the date of the accompanying financial statements, and the financial effect from their application has not been determined yet pending the update of regulations of the regulatory authorities in this respect.

The accompanying financial statements are stated in Jordanian Dinars.

b. Basis of Consolidation of Financial Statements:The financial statements include the financial statements of the Company and its foreign branches. Moreover, intercom balances are eliminated.

c. Revenues, Expenses and Transactions 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. Financial assets acquisition and disposal are recognized at the settlement date.

d. Reinsurance AccountsReinsurers shares of insurance premiums, paid claims,

technical provisions, and all other rights and obligations resulting from reinsurance based on contracts concluded between the company and reinsurers are accounted for according to the accrual basis.

e. Technical ProvisionsTechnical provisions are taken and maintained according to the regulations of the Insurance Regulatory Commission as follows:

1. The provision for unearned premiums for general insurance activities is calculated according to the remaining days up to the expiry date of the insurance policy on the basis of a 365-day year except for marine and land transport insurance for which the provision is calculated on the basis of underwritten premiums of valid documents at the date of the financial statements.

2. The provision for reported claims is computed by determining the total expected costs for each claim on an individual basis.

3. Additional provisions for unreported claims and catastrophic risks are calculated based on the company's experience and estimates.

4. Mathematical reserves of life insurance policies are calculated according to actuarial formulae that are periodically reviewed by an actuary.

5. Additional technical reserves are taken against any claims that may arise against the company.

f. Financial Assets Held for TradingFinancial assets held for trading are initially recognized at cost and remeasured at fair value at the date of the financial statements. Gains or losses resulting from these are taken to the statement of income when incurred.

g. Available-for-Sale Financial AssetsAvailable-for-sale financial assets are initially recognized at cost and remeasured at their fair value at the date of the financial statements. Gains or losses resulting there from are taken to shareholders’ equity. If the assets are sold, in whole or in part, or determined to be impaired, the cumulative gain or loss previously recognized in equity is included in the statement of income for the period.

h. Held-to-Maturity InvestmentsHeld-to-maturity investments, which the company intends to hold up to the maturity date, are stated at cost. Premium or



3232

discount (if any) is amortized according to the effective interest rate method by taking it to interest. Any provisions resulting from the impairment in the value of these investments leading to the recoverability of the investment or part there from are deducted.

i. Property Investments Property investments are stated at cost net of accumulated depreciation (except for lands). Moreover, depreciation is calculated on their productive lives. When the recoverable amount of the property is less than its carrying amount, the carrying amount of the property is reduced to its recoverable amount, and the impairment loss is taken to the statement of income.

j. Fixed AssetsFixed assets are stated at cost and depreciated (except for lands) according to the straight-line method at annual rates ranging from 10% to 20%.

k. Impairment of Fixed AssetsWhen the recoverable amount of a fixed asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount, and the impairment loss is taken to the statement of income.

l. Provision for Doubtful DebtsA provision for doubtful debts is taken when it becomes evident to management that these debts cannot be recovered in part or in full. The provision is calculated on the basis of the difference between the book value and recoverable value.

m. Provision for Income TaxA provision for income tax is taken on the basis of the expected tax liabilities estimated according to the regulations in force. The company’s accrued income tax differences (if any) are taken to the statement of income when paid after final settlement has been reached with the Income Tax Department.

- Deferred tax assets are taxes expected to be paid or recovered due to temporary timing differences between the value of assets or liabilities in the financial statements and the value on the basis of which tax profit is calculated. Taxes are calculated on the basis of the tax liability method in the balance sheet. Additionally, taxes are calculated, and deferred tax assets are recognized. - The balance of deferred tax assets or liabilities reviewed at the date of the financial statements. Moreover, it is reduced in case it is expected that these tax assets will not be utilized wholly or partially, tax liabilities are settled, or the related need no longer exists.

n. Provision for Staff End-of-Service IndemnityAnnual compensations paid to employees who leave office are taken to the provision for End-of-service indemnity when paid. Moreover, a provision is taken for the liabilities existing at the date of the financial statements.

o. Foreign Currency TransactionsTransactions in foreign currencies are recorded at the exchange rates of the Jordanian Dinar prevailing at the transaction date. Assets and liabilities denominated in foreign currencies are translated to Jordanian Dinar according to the average selling and buying exchange rates at the date of the financial statements. Exchange gains or losses resulting there from are taken to the statement of income.

p. Allocated General and Administrative Expenses 85% of the general and administrative expenses of the Head Office (including life) have been allocated to the various insurance departments on the basis of the earned premiums of each department in proportion to total premiums.

q. Intangible AssetsIntangible assets are recorded at cost upon acquisition, and are amortized over five years.

r. Fair ValueThe fair value of listed financial assets is based on its quoted closing price in the Amman Stock Exchange at the date of the financial statements. In case there is no quoted closing price for a financial asset, fair value is estimated by one of the following methods:- Comparing it to another financial asset with similar terms and conditions.- Using any other acceptable method.

s- Estimates:Preparation of the financial statements and application of the accounting policies require the company’s management to perform estimates and judgments that affect the amounts of the financial assets and liabilities, and disclosures relating to contingent liabilities.

These estimates and judgements also affect revenues, expenses, provisions and changes in the fair value, shown within shareholder's equity.

In particular, management is required to issue significant judgments to assess future cash flows and their timing. The above –mentioned estimates are based on several assumptions and factors with varying degrees of estimation and uncertainty. Moreover, the actual results may differ from the estimates due to charges resulting from the circumstances and situations of those estimates in the future.

Management believes that estimates within the financial statements are reasonable and their details are as follows:

Provision for accounts receivable is made according to various assumptions and bases adopted by management to evaluate the required provision according to the International Financial Reporting Standards.

The financial year is charged with its part from income tax according to the regulations and laws.

Management revaluates the productive lives of tangible assets periodically for the purposes of calculating annual depreciation based on the general condition of those assets and the estimates of their expected productive lives in the future. Any impairment loss is taken to the statement of income.

- The outstanding claims provision and technical provisions are taken based on technical studies according to the instructions of the Insurance Regulatory Commission. Moreover, the mathematical reserve is taken based on actuarial studies.

Provision for lawsuits against the company is based on a legal study conducted by the company's lawyer according to which probable in future risks are determined. Review of such studies is performed periodically.

Management reviews the financial assets, shown at cost, to evaluate any impairment in their value. Such impairment is taken to the statement of income.




3. Deposits at Banks:-

4. Trading Investments:-

Description

Share Listed on Amman Stock Exchange (ASE)

Total

638,475

638,475

538,587

538,587

31 December 2009 2008JD JD

6. Investments Held to Maturity:-

Description

Listed bonds in the financial market

Total

1,272,439

1,272,439

1,000,000

1,000,000


7. Property Investments - Net:-

Description

Lands

Buildings-net

Total

2,935,4403,114,1126,049,552

8,821,949 3,281,728

12,103,677


5. Investments Available for Sale:-

Description

Inside Jordan

Shares

Total Inside JordanOutside Jordan

Shares

Total Outside Jordan

Total

13,067,43313,067,433

13,326,61913,326,619

26,394,052

16,331,895 16,331,895

20,180,73320,180,733

36,512,628


31 December 2009 31/12/2008

5,843,1164,463,141

10,306,257

1,167,4402,068,5133,235,953

599,7321,110,0001,709,732

567,708958,513

1,526,221

JD JDJD JDTotal Total

Deposits due from 3-12 months

Deposit due in three months

Description

Inside Jordan

Outside Jordan

Total



8. Loans and Advances of the Life Department:-

Description

Loans for policy - holders less than surrender value

Total70,34070,340

77,867 77,867


9. Cash on Hand and at Banks:-

Description

Cash on hand

Cash at banks (Current Accounts)

Total

53,362 2,571,715 2,625,077


10. Checks Under Collection and Notes Receivable:-

Description

Notes receivable

Checks under collection

Total

35,535979,583

1,015,118


11. Accounts Receivable -Net:-

Description

Policy - holders

Agents

Employees

Others

Deduct: provision for doubtful debts

Total

7,168,192 553,300 122,535

2,625,445 (1,060,396)9,409,076


12. Insurance Companies Accounts:-

Description

Local insurance companies

Foreign reinsurance companies

Deduct: provision for doubtful debts

Total

1,197,632 773,125 (34,000)

1,936,757

70,276 2,256,554 2,326,830

31,535 913,059 944,594

7,621,986 695,491 102,671

1,585,013 (1,226,835)

8,767,055

2,199,975 1,108,974

(34,000)3,274,949




13. Income Taxa. Income Tax Provision:-

b. Assets / Liabilities Deferred Tax:-

14. Fixed Assets - Net:-

Description

Beginning balance

Income tax paid

Provision for income tax

Ending Balance

1,212,330 (693,165)1,050,000 1,569,165

1,569,165 (1,605,699)

1,041,000 1,004,466


15. Other Assets :-

Description

Refundable deposits

Prepaid expenses

Accrued revenues

Others

Total

574,665 51,372 36,000

278,742 940,779

610,155135,116

38,950363,136

1,147,357


511,113 378,600 388,640

37,282 1,315,635

- 86,453

540,846 136,589 763,888

511,113 465,053 929,486 173,871

2,079,523

511,113373,849317,158

29,2421,231,362

-94,524

661,568144,629900,721

511,133468,373978,726173,871

2,132,083

JD JDJD

AccumulatedDepreciationCost

Net BookValue

JD JDJD

AccumulatedDepreciationCost

Net BookValue

Description

Lands

Buildings

Equipment, machinery & furniture

Vehicles

Total

31 December20082009

31/12/2009

JD JDJDJD

Deferred TaxAdjustments

EndingBalance

BeginningBalance

DescriptionAssets Deferred TaxDoubtful debts provision

Provision for staff end-of-service indemnity

Technical provision

IBNR provision

TotalLiabilities Deferred TaxAvailable for sale investments net profit

(Outside Jordan)

31/12/2008Deferred

Tax

173,711 5,843

63,750 -

243,304

-

190,762 3,833

96,000 80,433

371,028

51,341

794,843 15,972

400,000 335,137

1,545,952

213,921

100,000 (4,972)

145,000 335,137 575,165

213,921

JD

694,843 20,944

255,000 -

970,787

-



16. Accumulated Mathematical Reserve - Net:-

Description

Company's share from mathematical reserve

Retained earnings - additional

Total


17. Accounts Payable:-

Description

Agents

Others

Total


18. Insurance Companies Accounts:-

Description

Local insurance companies

Foreign reinsurance companies

Total


19. Other Provisions:-

Description

Provision for staff end-of-service indemnity

Scientific research and vocational training provision

Universities fees provision

Provision for vocational and technical training fund

Annual leaves provision

Provision for group life policies profit commission

Provision for accrued policies matured

Insurance regulatory commission fees provision

Total


1,469,802 40,000

1,509,802

1,378,588 40,000

1,418,588

131,703

737,954

869,657

134,233

2,455,795

2,590,028

1,122,356

2,726,519

3,848,875

1,281,129

2,751,755

4,032,884

482,463

75,673

84,650

86,522

3,278

23,220

20,637

8,808

785,251

535,176

24,005

23,908

23,908

3,278

-

20,637

5,129

636,041



20. Other Liabilities:-

Description

Accrued expenses

Unearned revenues

Board of Directors remunerations

The Ministry of Finance deposits

Premiums in advance

Car parking deposits

Life policies deposits

Other deposits

Total

75,810 365,385

55,000 929

2,366 1,393

54,898 5,680

561,461

91,374 402,143

55,000 461

3,257 9,479

96,962 5,680

664,356

31 December

2009 2008

JD JD

21. Cumulative Changes In Fair Value:-

Description

Beginning balance

Change in fair value

Net realized gains

Net change in fair value


Ending balance

31 December

2009 2008

JD JD

22. Interest Revenue:-

Description

Bank interest

Investment held to maturity interest

Loans interest

TotalAmount transferred to underwriting accounts / Life Dep

Amount transferred to statement of income

Total

1,526,266 (1,896,320)(1,619,000)(3,515,320)

- (1,989,054)

(1,989,054) 7,308,362 (187,763)

7,120,590 1,129,028 6,260,573

292,510111,090

156403,756209,858193,898403,756

359,874 100,639

1,848 462,361 211,367 250,994 462,361

31 December

2009 2008

JD JD



23. Income from Financial Assets and Investments - Net:-

Description

Dividends received

Gain from the sale of trading investments - net

Change in the fair value of trading investments

Gain from the sale of investments available for sale - net

Real estate investment returns

Rental income - net

Total

31 December

2009 2008

JD JD

25. Employee Expenses:-

Description

Salaries & bonuses

Provident fund

End-of-service indemnity

Company contributions to social security

Medical expenses

Employee training & developments

Travel & transportation

TotalAllocated Employee Expenses - General InsuranceUnallocated Employee ExpensesTotal

31 December

2009 2008

JD JD

24. Other Revenues:-

Description

Foreign exchange differences

Other

Total

708,196 4,192,248 (293,725)

1,619,000 51,756

305,444 6,582,919

891,348 -

178,215 187,763

1,045 337,599

1,595,970

2,767,282 133,116

12,847 182,648 160,255

8,360 205,710

3,470,219 2,924,252

545,967 3,470,219

3,065,080 149,320

- 219,409 165,946

49,566 189,262

3,838,583 3,190,254648,329

3,838,583

(28,307)600,693 572,386

182,208 629,896 812,104

31 December

2009 2008

JD JD



26. Administrative and General Expenses:-

Description

Rents

Stationary & publications

Advertisements

Bank interest

Electricity, heating and water

Repairs

Post & telecommunication

National agent commission / outside Jordan

Professional fees

Hospitality

Lawyer fees & expenses

Revolution expenses

Computer maintenance

Computer program licenses

Computer program service

Subscriptions

Board members transportation fees

Tenders expenses

Legal fees & expenses

Donations

Insurance expenses

Marketing expenses

Discount allowed & bad debts expenses

Others

TotalAllocated General and Administrative Expenses-General InsuranceUnallocated General and Administrative ExpensesTotal

31 December

2009 2008

JD JD

27. Earnings Per Share:-

Description

Net income for the year after tax and fees

Weighted average of stocks

Earnings per share for the year

31 December

2009 2008

JD JD

28. Cash & Cash Equivalent:-

Description

Cash on hand

Deposit due in three month

Cash at banks (current account )

Total

48,719 83,440 49,530

4,283 54,425 15,036

146,806 40,700 43,818

109,523 29,280

1,100 17,153 65,489 34,607 24,383 52,800 23,525 62,844 68,994 27,416

239,535 24,019

160,551 1,427,976 1,207,219

220,757 1,427,976

8,460,011 30,000,000

28%

53,3628,518,4152,571,715

11,143,492

52,988 67,720 52,462 68,570 43,061 18,690

144,184 40,700 41,020 78,811 46,016 10,440 13,636 41,919 48,019 70,414 72,600 21,135 73,783

102,801 31,004

224,845 70,978

156,092 1,591,888 1,332,253

259,635 1,591,888

3,006,339 30,000,000

10%

70,276 1,526,221 2,256,554 3,853,051

31 December

2009 2008

JD JD

Board of Directors

Audit Committee

Legal Consultant

Internal Auditor

General Manager

DGM Technical

operation & branches

DGM

Financial & administrative

IT

AGM

Marine

Fire and General

Accidents

Reinsurance

Regional

branches

Business

Development

Motors /

production

Account

Credit control

DGM

Life & Medical

Medical

insurance

Life

insurance

Account

Shareholders

Human

Resources

Legal Affairs

Investments

Motor / claims

Marketing

AGM

Production & Marketing

Productions

SalesTravel

insurance

Personal

accidents

Print - Jordan Insurance Company 2009.pdf · E-mail: [email protected] Madina Branch - Amman...

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