1
Head Office Bldg-Amman, Jordan
InternatIonal General Insurance HoldInGs ltdconsolIdated FInancIal statements31 december 2014 CONTENTS
ABOUT IGIH
BOARD OF DIRECTORS
LETTER FROM THE BOARD OF DIRECTORS
FINANCIAL STATEMENTS
IGI OFFICES
2
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5
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54
InternatIonal General Insurance HoldInGs ltdconsolIdated FInancIal statements31 december 2014 About IGIH:
International General Insurance Holdings Limited (IGIH) is registered in the Dubai International
Financial Centre (DIFC) with operations in Bermuda, Jordan, Malaysia, Morocco and a wholly
owned subsidiary in the U.K.
IGI Bermuda is a class 3B (re)insurer regulated by the Bermuda Monetary Authority (BMA).
This subsidiary is the principal underwriting entity for the Group. The Group also has a branch
in Labuan, Malaysia, registered as a second-tier offshore reinsurer.
IGI Bermuda is rated A- with a stable outlook by Standard & Poor’s and A- (Excellent) with a
stable outlook by A.M Best Company.
IGI UK is rated A- (Excellent) by A.M Best Company.
IGI Group of companies underwrites a worldwide portfolio of energy, property, marine,
engineering, casualty, financial institutions, general aviation, ports & terminals, political violence
and non-proportional reinsurance treaty business with the main geographical focus being the
Afro-Asian markets.
IGIH has assets in excess of US$ 710 million as at 31st December, 2014.
4
INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED
BOARD OF DIRECTORS 5
Board Of Directors
Mr. Mohammed Abu Ghazaleh
Chairman (Chairman and CEO, Fresh Del Monte Produce Inc. – Miami)
Mr. Wasef Jabsheh
CEO & Vice Chairman
Mr. Khalifa Al Mulhem
Director (Chairman, National Polypropylene Company Limited – Saudi Arabia)
Mr. Hani Tarazi
Director (Saba IP & Co. – Dubai, UAE)
Mr. Hani Jabsheh
Director (CEO, Al Bawaba.com)
Al Sayyida Rawan Al Said
Director (Vice Chairman and CEO of Takaful Oman SOAG,
member of the Board of Directors of ONIC Holding)
David King
Director (Non-executive Director of the Board of Directors of FXCM Securities Limited)
6
Letter From the Board of Directors
It gives us great pleasure to include herewith the full report on International General Insurance Holdings Ltd.’s 2014 financial
performance. The past year has seen continued success for IGI, as we have achieved both record profits and a healthier
combined ratio.
Although 2014 witnessed a growth rate of 4.8% in gross written premium, net profits increased 9.9% year over year. This can be
attributable to disciplined underwriting, reduction in reinsurance costs and consistent investment profits.
The Company experienced another year with record income levels, helping provide investors a 13.05% return on equity, as
compared to 12.69 % in previous year. Our results further demonstrate that IGI’s overall business and investment strategy
present a sound and comprehensive business approach to today’s evolving reinsurance market.
2014 was a fairly uneventful one in the insurance market, with losses at relatively benign levels. According to a Swiss Re sigma
study, global insured losses from natural catastrophes and man-made disasters were around 35 billion US Dollars which is well
below the 10 year average of US$ 64. Ultimately, IGI was able to outperform its budgeted loss ratio and realize a 52.95% loss ratio
versus 54.68% in 2013.
The year was also met with increased volatility on the geopolitical front in the MENA region due to continued civil strife in
Iraq, Syria and Yemen. There was also a large increase in volatility in the global financial markets, with oil prices dropping by
approximately 50%, Europe announcing their version of quantitative easing, a strengthening US Dollar and the US Federal
Reserve showing signs that a rate hike is imminent. Although these headlines have caused confusion in the energy and financial
markets, we were able to mitigate the volatility with a major reduction in our GCC equity exposures and continued geographical
diversification of our insurance business lines.
In 2014, the Company was pleased to have been granted approval from the Casablanca Finance City Authority (CFCA) to
establish a representative office within Casablanca Finance City (CFC). This new venture will create a foundation for IGI’s
presence and focused growth in Africa as we aim to increase our exposure in the continent. This new platform will provide
greater access to the Northern, Central and West African markets from within the CFC.
We did not introduce any new lines of business in 2014; rather, our aim was to focus on strengthening existing ones whilst
discontinuing any business we deemed non profitable. As a result, as of April 1, 2014, we decided to cease underwriting marine
cargo and hull due to the unhealthy pricing conditions and unfavorable profit margins.
Highlights for the year 2014 include the following:
Underwriting profit grew to US$ 50.1 million for 2014, an increase of 14.9% from US$ 43.55 million in 2013.
Investment income for the year stood at US$ 12.2 million, an increase of 29% compared to US$ 9.46 million for 2013.
The combined ratio for 2014 was 87.11 % compared to 87.93 % for 2013.
• Gross written premium in 2014 was US$ 251.52 million, an increase of 4.8% compared to US$ 240.01 million for 2013.
•
•
•
• Net Profit amounted to US$ 34.34 million for 2014 against US$ 31.26 million for 2013, an increase of 9.9%
•
Total assets were US$ 712.18 million at the end of 2014, an increase of 6% compared to US$ 672 million as of 31st
December, 2013.
Shareholders’ equity rose to US$ 263.17 million at the end of 2014, up 6.9% compared to US$ 246.32 million as of
31st December, 2013.
•
For 2015, it is with great pleasure that we announce that in the first quarter, S&P Rating Services has decided to upgrade IGI to
A- Stable outlook from BBB+ Positive. This rating upgrade is further validation of IGI’s successful business strategy coupled with
its disciplined underwriting and strong financial flexibility. Our new rating will enable us to grow our current lines of business as
well as introduce new lines of business that are rating sensitive.
INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED
LETTER FROM THE BOARD OF DIRECTORS 7
In 2015, we expect to see continued pressure on pricing due to the prevalent excess capital in the insurance market. This is a
normal part of the insurance business cycle and we are well positioned to mitigate any softness in the market.
With regards to falling oil prices, we anticipate a slowdown in new energy projects. We expect this to affect future growth in the
energy insurance market but IGI is well placed to compensate for such shortage with other lines of business.
Looking forward into 2015, whilst our Casablanca office will aid us in our expansion plans, we will continue to fortify our UK and
Dubai platforms. We also intend to continue building new relationships as well as reinforcing and expanding our existing business
partnerships. We will be actively seeking new business opportunities, new business lines and increasing our geographic footprint.
Our investment policy will remain very conservative as we anticipate a rate hike in the US sometime in 2015 and continued
volatility in the global markets. To mitigate such volatility, we continue to increase our cash holdings, reduce equity exposure
and invest in shorter duration fixed income securities allowing us to take advantage of any aberrations in the markets. Following
a strengthening in realized investment gains in 2014, we anticipate a further increase in 2015 as we continue to actively manage
our portfolio and look for investment opportunities.
We remain confident in forging ahead into 2015 with our broad strategy of underwriting discipline, conservative investment
management and business diversification. We are extremely pleased with our current market position and 2014 results, and we
plan to build on our successes as the leading (re)insurer in the MENA region.
As always, we would like to extend a thank you to all our clients and producers for their unremitting support throughout 2014.
We would also like to thank all our employees for their significant effort and contribution this year. We look forward to working
together in 2015 to fulfill the visions and ambitions of the Company and to further promote our position as the lead underwriting
operation in the region.
Board of Directors
INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED
AUDITORS` REPORT
8
9
Ernst & Young
P.O.Box 9267
28th Floor, Al Attar Business Tower
Sheikh Zayed Road
Dubai, United Arab Emirates
Tel: +971 4 332 4000
Fax: +971 4 332 4004
dubai.uae@ae.ey.com
ey.com/mena
INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS
OF INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD.
Report on the consolidated financial statements
We have audited the accompanying consolidated financial statements of International General Insurance Holdings Ltd (“the
Company”) and its subsidiaries (together “the Group”), which comprise the consolidated statement of financial position as at 31
December 2014 and the consolidated statements of income, other comprehensive income, changes in equity and cash flows for
the year then ended, and a summary of significant accounting policies and other explanatory information.
Management’s responsibility for the consolidated financial statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance
with International Financial Reporting Standards and the applicable provisions of the Companies Law pursuant to DIFC Law No.
2 of 2009, and for such internal control as management determines is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the Company and the shareholders of the
Company as a body, for our audit work, for this report, or for the opinions we have formed. 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 consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial
statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements
in order to design audit procedures that are appropriate for the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation
of the consolidated 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 consolidated financial statements present fairly, in all material respects, the financial position of the Group as
at 31 December 2014 and its financial performance and its cash flows for the year then ended, in accordance with International
Financial Reporting Standards.
Report on other legal and regulatory requirements
We also confirm that, in our opinion, the consolidated financial statements include, in all material respects, the applicable
requirements of the Companies Law pursuant to DIFC Law No. 2 of 2009. We have obtained all the information and explanations
which we required for the purpose of our audit. To the best of our knowledge and belief, no violations of the companies law pursuant
to Law No. 2 of 2009 have occurred during the year which would have had a material effect on the business of the Company or
on its financial position.
Dubai, United Arab Emirates
19 March 2015
INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED
FINANCIAL RESULTS
10
FINANCIAL RESULTS
300
250
200
150
100
50
0
800
700
600
500
400
300
200
100
0
240
251
226
203
179
34
31
23
25
17
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
623
672
712
564
488
205
232
188
263
246
300
250
200
150
100
50
0
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
11
12
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2014 13
Notes
2014
USD
2013
USD
3
4
5
6
7
8
9
10
24
11
12
13
14
15
12
11
17
18
19
3,330,145
334,010
3,849,915
180,389
11,087,334
11,703,630
28,611,765
28,550,500
183,021,032
198,297,422
27,500,132
95,349,999
10,955,090
400,784
27,621,280
95,109,788
2,779,279
730,618
27,649,371
22,136,020
81,072,936
63,302,805
10,765,781
8,288,678
232,104,743
209,457,108
712,183,122
672,007,432
143,375,678
143,375,678
(12,000,000)
(12,000,000)
(237,135)
(214,298)
18,900,541
22,821,709
113,139,208
92,346,727
263,178,292
246,329,816
276,467,451
252,541,549
139,595,616
139,154,406
4,899,398
3,111,273
20,345,945
24,241,201
7,696,420
6,629,187
449,004,830
425,677,616
712,183,122
672,007,432
ASSETS
Premises and equipment
Intangible assets
Investment in associates
Investment properties
Investments
Deferred policy acquisition costs
Insurance receivables
Other assets
Deferred tax assets
Reinsurance share of unearned premiums
Reinsurance share of outstanding claims
Deferred XOL premium
Cash and bank balances
TOTAL ASSETS
EQUITY AND LIABILITIES
Equity
Issued share capital
Treasury shares
Foreign currency translation reserve
Cumulative changes in fair values
Retained earnings
Total equity
Liabilities
Gross outstanding claims
Gross unearned premiums
Other liabilities
Insurance payables
Unearned commissions
Total liabilities
TOTAL EQUITY AND LIABILITIES
The consolidated financial statements were authorised for issue in accordance with a resolution of the Board of Directors on 19 March 2015.
The attached notes 1 to 27 form part of these consolidated financial statements
14
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
CONSOLIDATED STATEMENT OF INCOME
FOR THE YEAR ENDED 31 DECEMBER 2014
Gross written premiums
Change in unearned premiums
Gross earned premiums
Reinsurers’ share of insurance premiums
Reinsurers’ share of change in unearned premiums
Reinsurers’ share of gross earned premiums
Net premiums earned
Claims
Reinsurers’ share of claims
Commissions earned
Policy acquisition costs
Net underwriting result
Net investment income
Share of (loss) profit from associates
General and administrative expenses
Provision for doubtful debts
Other expenses
Other income
Loss on exchange
PROFIT BEFORE TAX
Tax expense
PROFIT FOR THE YEAR
Notes
2014
USD
2013
USD
11
11
11
11
12
12
19
8
20
5
21
251,525,833
240,008,259
(441,210)
1,058,400
251,084,623
241,066,659
(67,057,242)
(58,767,697)
5,513,351
(1,649,773)
(61,543,891)
(60,417,470)
189,540,732
180,649,189
(143,893,992)
(123,021,028)
43,537,262
10,329,307
24,246,187
9,350,877
(49,409,574)
(47,667,348)
50,103,735
43,557,877
14,961,731
(184,651)
9,985,201
408,709
(24,483,717)
(21,169,540)
(864,350)
(2,295,573)
6,086
(2,573,378)
(494,000)
-
14,375
(949,291)
34,669,883
31,353,331
24
(329,834)
(89,924)
34,340,049
31,263,407
The attached notes 1 to 27 form part of these consolidated financial statements
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2014 15
2014
USD
2013
USD
Profit for the year
34,340,049
31,263,407
Other comprehensive income to be reclassified to profit
or loss in subsequent periods:
Fair value changes
Currency translation differences
Other comprehensive income for the year
Total comprehensive income for the year
(3,921,168)
(22,837)
(3,944,005)
7,496,682
16,697
7,513,379
30,396,044
38,776,786
The attached notes 1 to 27 form part of these consolidated financial statements
16
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2014
OPERATING ACTIVITIES
Profit before tax
Adjustments for:
Depreciation and amortization
Gain on sale of available-for-sale investments
Provision for doubtful debts
Impairment of available-for-sale investments
Gain on sale of premises and equipment
Loss on revaluation of held for trading investments
Dividends and interest income
Share of loss (profit) from associates
Net foreign exchange differences
Cash from operations before working capital changes
Working capital adjustments
Reinsurance share of unearned premiums
Reinsurance share of outstanding claims
Deferred XOL premium
Gross outstanding claims
Gross unearned premiums
Deferred policy acquisition costs
Insurance receivables
Other assets
Unearned commission
Insurance payables
Other liabilities
Net cash from operating activities
INVESTING ACTIVITIES
Purchase of premises and equipment
Proceeds from sale of premises and equipment
Purchase of intangible assets
Purchase of available-for-sale investments
Proceeds from maturity of held to maturity investments
Proceeds from sale of available-for-sale investments
Proceeds from redemption of trading securities
Purchase of investment properties
Dividends received from associates
Dividends and interest income
Net cash from (used in) investing activities
FINANCING ACTIVITIES
Dividends paid
Purchase of treasury shares
Net cash used in financing activities
NET CHANGE IN CASH AND CASH EQUIVALENTS
Net foreign exchange differences
Cash and cash equivalents at the beginning of the year
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
Notes
2014
USD
2013
USD
34,669,883
31,353,331
969,320
(7,656,785)
864,350
1,581,007
(6,086)
538,755
(9,779,951)
961,457
(1,622,258)
494,000
895,203
(14,375)
3,972
(9,628,530)
184,651
(408,709)
2,573,378
949,291
23,938,522
22,983,382
(5,513,351)
(17,770,131)
(2,477,103)
23,925,902
441,210
121,148
(1,104,561)
(8,198,648)
1,067,233
(3,895,256)
1,788,125
1,649,773
4,509,482
102,369
34,133,831
(1,058,400)
3,133,312
2,138,473
(435,577)
(2,087,926)
4,673,729
(538,010)
12,323,090
69,204,438
(351,045)
6,643
(252,683)
(38,174,885)
84,746
54,982,384
-
(61,265)
431,645
9,779,951
26,445,491
(432,633)
32,097
(11,170)
(60,568,769)
79,972
21,514,036
113,546
-
933,651
9,628,530
(28,710,740)
(13,547,568)
-
(13,547,568)
25,221,013
(2,573,378)
209,457,108
232,104,743
(12,587,811)
(12,000,000)
(24,587,811)
15,905,887
(949,291)
194,500,512
209,457,108
3,4
20
9
20
20
20
5
3
4
5
20
16
15
13
The attached notes 1 to 27 form part of these consolidated financial statements
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18
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AT 31 DECEMBER 2014
1 - ACTIVITIES
International General Insurance Holdings Ltd (“the Company”) is incorporated as a company limited by shares under the
Companies Law, DIFC Law No. 2 of 2009 on 7 May 2006 and is engaged in the business of insurance and re-insurance. The
Company’s registered office is at unit 1, Gate Village 01, P. O. Box 506646, Dubai International Financial Centre.
The Company and its subsidiaries (together “the Group”) operate in the United Arab Emirates, Bermuda, United Kingdom,
Jordan and Malaysia.
2 - BASIS OF PREPARATION
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as
issued by the International Accounting Standards Board (IASB) and applicable requirements of UAE laws.
The consolidated financial statements have been presented in United States Dollars “USD” which is the Group’s functional currency.
The consolidated financial statements are prepared under the historical cost convention modified to include the measurement at fair
value of financial assets available-for-sale, financial assets held for trading and investment properties.
Basis of consolidation
The financial statements of the subsidiaries are prepared for the same reporting year as the Group, using consistent accounting policies.
The consolidated financial statements comprise the financial statements of International General Insurance Holdings Ltd. and its
subsidiaries as at 31 December. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement
with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an
investee if and only if the Group has:
•
•
•
Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee)
Exposure, or rights, to variable returns from its involvement with the investee, and
The ability to use its power over the investee to affect its returns
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and
circumstances in assessing whether it has power over an investee, including:
•
•
•
The contractual arrangement with the other vote holders of the investee
Rights arising from other contractual arrangements
The Group’s voting rights and potential voting rights
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more
of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases
when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during
the year are included in the consolidated statement of comprehensive income from the date the Group gains control until the date the
Group ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the
Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary,
adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting
policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the
Group are eliminated in full on consolidation.
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AT 31 DECEMBER 2014 19
A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction. If the Group
loses control over a subsidiary, it:
• Derecognises the assets (including goodwill) and liabilities of the subsidiary;
• Derecognises the carrying amount of any non-controlling interest;
• Derecognises the cumulative translation differences, recorded in equity, if any;
• Recognises the fair value of the consideration received;
• Recognises the fair value of any investment retained;
• Recognises any surplus or deficit in profit or loss; and
• Reclassifies the parent’s share of components previously recognised in other comprehensive income to profit or loss or retained
earnings, as appropriate.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be
consolidated until the date that such control ceases.
All intra-group balances, transactions, income and expenses and profits and losses, including dividends resulting from intra-group
transactions, are eliminated in full.
The Group has the following subsidiaries:
Country of
incorporation
Activity
International General Insurance Underwriting
Jordan
Underwriting agency
Ownership
2014
100%
2013
100%
North Star Underwriting Limited
United Kingdom
Underwriting agency
100%
100%
International General Insurance Co. Ltd.
Bermuda
Reinsurance and insurance
100%
100%
The following entities are wholly owned by the
subsidiary International General Insurance Co.
Ltd. Bermuda
International General Insurance Company Ltd.
Labuan Branch
International General Insurance Company (UK)
Limited
Malaysia
Reinsurance and insurance
100%
100%
United Kingdom
Reinsurance and insurance
100%
100%
International General Insurance Company Dubai Ltd.
United Arab
Emirates
Insurance intermediation and
insurance management
100%
100%
Specialty Malls Investment Co.
Jordan
Real estate properties
development and lease
100%
100%
20
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
Changes in accounting policies
The accounting policies adopted are consistent with those of the previous financial year, except for the following new and amended
standards and interpretations effective as of 1 January 2014:
The nature and the impact of each new standard and amendment are described below:
Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27)
These amendments provide an exception to the consolidation requirement for entities that meet the definition of an investment
entity under IFRS 10 Consolidated Financial Statements and must be applied retrospectively, subject to certain transition relief.
The exception to consolidation requires investment entities to account for subsidiaries at fair value through profit or loss. These
amendments have no impact on the Group, since none of the entities in the Group qualifies to be an investment entity under
IFRS 10.
Offsetting Financial Assets and Financial Liabilities - Amendments to IAS 32
These amendments clarify the meaning of ’currently has a legally enforceable right to set-off’ and the criteria for non-simultaneous
settlement mechanisms of clearing houses to qualify for offsetting and is applied retrospectively. These amendments have no im-
pact on the Group, since none of the entities in the Group has any offsetting arrangements.
Novation of Derivatives and Continuation of Hedge Accounting – Amendments to IAS 39
These amendments provide relief from discontinuing hedge accounting when novation of a derivative designated as a hedging
instrument meets certain criteria and retrospective application is required. These amendments have no impact on the Group
as the Group has not novated its derivatives during the current or prior periods.
IFRIC 21 Levies
IFRIC 21 clarifies that an entity recognises a liability for a levy when the activity that triggers payment, as identified by the relevant legis-
lation, occurs. For a levy that is triggered upon reaching a minimum threshold, the interpretation clarifies that no liability should be antic-
ipated before the specified minimum threshold is reached. Retrospective application is required for IFRIC 21. This interpretation has no
impact on the Group as it has applied the recognition principles under IAS 37 Provisions, Contingent Liabilities and Contingent Assets
consistent with the requirements of IFRIC 21 in prior years.
Annual Improvements 2010-2012 Cycle
In the 2010-2012 annual improvements cycle, the IASB issued seven amendments to six standards, which included an amendment to
IFRS 13 Fair Value Measurement. The amendment to IFRS 13 is effective immediately and, thus, for periods beginning at 1 January 2014,
and it clarifies in the Basis for Conclusions that short-term receivables and payables with no stated interest rates can be measured at
invoice amounts when the effect of discounting is immaterial. This amendment to IFRS 13 has no impact on the Group.
Annual Improvements 2011-2013 Cycle
In the 2011-2013 annual improvements cycle, the IASB issued four amendments to four standards, which included an amendment to
IFRS 1 First-time Adoption of International Financial Reporting Standards. The amendment to IFRS 1 is effective immediately and, thus,
for periods beginning at 1 January 2014, and clarifies in the Basis for Conclusions that an entity may choose to apply either a current
standard or a new standard that is not yet mandatory, but permits early application, provided either standard is applied consistently
throughout the periods presented in the entity’s first IFRS financial statements. This amendment to IFRS 1 has no impact on the Group,
since the Group is an existing IFRS preparer.
Standards issued but not yet effective
The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group’s financial statements are
disclosed below. The Group intends to adopt these standards, if applicable, when they become effective.
IFRS 9 Financial Instruments
In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments which reflects all phases of the financial instruments
project and replaces IAS 39 Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9. The stand-
ard introduces new requirements for classification and measurement, impairment, and hedge accounting. IFRS 9 is effective for
annual periods beginning on or after 1 January 2018, with early application permitted. Retrospective application is required, but
comparative information is not compulsory. Early application of previous versions of IFRS 9 (2009, 2010 and 2013) is permitted if
the date of initial application is before 1 February 2015. The adoption of IFRS 9 will have an effect on the classification and meas-
urement of the Group’s financial assets, but no impact on the classification and measurement of the Group’s financial liabilities.
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
21
IFRS 14 Regulatory Deferral Accounts
IFRS 14 is an optional standard that allows an entity, whose activities are subject to rate-regulation, to continue applying most of its ex-
isting accounting policies for regulatory deferral account balances upon its first-time adoption of IFRS. Entities that adopt IFRS 14 must
present the regulatory deferral accounts as separate line items on the statement of financial position and present movements in these
account balances as separate line items in the statement of profit or loss and other comprehensive income. The standard requires
disclosures on the nature of, and risks associated with, the entity’s rate-regulation and the effects of that rate-regulation on its financial
statements. IFRS 14 is effective for annual periods beginning on or after 1 January 2016. Since the Group is an existing IFRS preparer, this
standard would not apply.
Amendments to IAS 19 Defined Benefit Plans: Employee Contributions
IAS 19 requires an entity to consider contributions from employees or third parties when accounting for defined benefit plans.
Where the contributions are linked to service, they should be attributed to periods of service as a negative benefit. These amend-
ments clarify that, if the amount of the contributions is independent of the number of years of service, an entity is permitted to
recognise such contributions as a reduction in the service cost in the period in which the service is rendered, instead of allocating
the contributions to the periods of service. This amendment is effective for annual periods beginning on or after 1 July 2014. It is
not expected that this amendment would be relevant to the Group, since none of the entities within the Group has defined benefit
plans with contributions from employees or third parties.
Annual improvements 2010-2012 Cycle
These improvements are effective from 1 July 2014 and are not expected to have a material impact on the Group. They include:
IFRS 2 Share-based Payment
This improvement is applied prospectively and clarifies various issues relating to the definitions of performance and service condi-
tions which are vesting conditions, including:
• A performance condition must contain a service condition
• A performance target must be met while the counterparty is rendering service
• A performance target may relate to the operations or activities of an entity, or to those of another entity in the same group
• A performance condition may be a market or non-market condition
•
If the counterparty, regardless of the reason, ceases to provide service during the vesting period, the service condition is not satisfied
IFRS 3 Business Combinations
The amendment is applied prospectively and clarifies that all contingent consideration arrangements classified as liabilities (or assets)
arising from a business combination should be subsequently measured at fair value through profit or loss whether or not they fall within
the scope of IFRS 9 (or IAS 39, as applicable).
IFRS 8 Operating Segments
The amendments are applied retrospectively and clarifies that:
• An entity must disclose the judgements made by management in applying the aggregation criteria in paragraph 12 of IFRS 8, includ-
ing a brief description of operating segments that have been aggregated and the economic characteristics (e.g., sales and gross
margins) used to assess whether the segments are similar.
• The reconciliation of segment assets to total assets is only required to be disclosed if the reconciliation is reported to the chief oper-
ating decision maker, similar to the required disclosure for segment liabilities.
IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets
The amendment is applied retrospectively and clarifies in IAS 16 and IAS 38 that the asset may be revalued by reference to
observable data on either the gross or the net carrying amount. In addition, the accumulated depreciation or amortisation is
the difference between the gross and carrying amounts of the asset.
IAS 24 Related Party Disclosures
The amendment is applied retrospectively and clarifies that a management entity (an entity that provides key management personnel
services) is a related party subject to the related party disclosures. In addition, an entity that uses a management entity is required to
disclose the expenses incurred for management services.
22
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
Annual improvements 2011-2013 Cycle
These improvements are effective from 1 July 2014 and are not expected to have a material impact on the Group. They include:
IFRS 3 Business Combinations
The amendment is applied prospectively and clarifies for the scope exceptions within IFRS 3 that:
Joint arrangements, not just joint ventures, are outside the scope of IFRS 3
•
• This scope exception applies only to the accounting in the financial statements of the joint arrangement itself
IFRS 13 Fair Value Measurement
The amendment is applied prospectively and clarifies that the portfolio exception in IFRS 13 can be applied not only to financial assets
and financial liabilities, but also to other contracts within the scope of IFRS 9 (or IAS 39, as applicable).
IAS 40 Investment Property
The description of ancillary services in IAS 40 differentiates between investment property and owner-occupied property (i.e.,
property, plant and equipment). The amendment is applied prospectively and clarifies that IFRS 3, and not the description of an-
cillary services in IAS 40, is used to determine if the transaction is the purchase of an asset or business combination.
IFRS 15 Revenue from Contracts with Customers
IFRS 15 was issued in May 2014 and establishes a new five-step model that will apply to revenue arising from contracts with customers.
Under IFRS 15 revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange
for transferring goods or services to a customer. The principles in IFRS 15 provide a more structured approach to measuring and recog-
nising revenue.
The new revenue standard is applicable to all entities and will supersede all current revenue recognition requirements under IFRS. Ei-
ther a full or modified retrospective application is required for annual periods beginning on or after 1 January 2017 with early adoption
permitted. The Group is currently assessing the impact of IFRS 15 and plans to adopt the new standard on the required effective date.
Amendments to IFRS 11 Joint Arrangements: Accounting for Acquisitions of Interests
The amendments to IFRS 11 require that a joint operator accounting for the acquisition of an interest in a joint operation, in which the activity
of the joint operation constitutes a business must apply the relevant IFRS 3 principles for business combinations accounting. The amend-
ments also clarify that a previously held interest in a joint operation is not remeasured on the acquisition of an additional interest in the same
joint operation while joint control is retained. In addition, a scope exclusion has been added to IFRS 11 to specify that the amendments do not
apply when the parties sharing joint control, including the reporting entity, are under common control of the same ultimate controlling party.
The amendments apply to both the acquisition of the initial interest in a joint operation and the acquisition of any additional interests in the
same joint operation and are prospectively effective for annual periods beginning on or after 1 January 2016, with early adoption permitted.
These amendments are not expected to have any impact to the Group.
Amendments to IAS 16 and IAS 38: Clarification of Acceptable Methods of Depreciation and Amortisation
The amendments clarify the principle in IAS 16 and IAS 38 that revenue reflects a pattern of economic benefits that are generated from
operating a business (of which the asset is part) rather than the economic benefits that are consumed through use of the asset. As a re-
sult, a revenue-based method cannot be used to depreciate property, plant and equipment and may only be used in very limited circum-
stances to amortise intangible assets. The amendments are effective prospectively for annual periods beginning on or after 1 January
2016, with early adoption permitted. These amendments are not expected to have any impact to the Group given that the Group has not
used a revenue-based method to depreciate its non-current assets.
Amendments to IAS 16 and IAS 41 Agriculture: Bearer Plants
The amendments change the accounting requirements for biological assets that meet the definition of bearer plants. Under the
amendments, biological assets that meet the definition of bearer plants will no longer be within the scope of IAS 41. Instead, IAS 16
will apply. After initial recognition, bearer plants will be measured under IAS 16 at accumulated cost (before maturity) and using ei-
ther the cost model or revaluation model (after maturity). The amendments also require that produce that grows on bearer plants
will remain in the scope of IAS 41 measured at fair value less costs to sell. For government grants related to bearer plants, IAS 20
Accounting for Government Grants and Disclosure of Government Assistance will apply. The amendments are retrospectively
effective for annual periods beginning on or after 1 January 2016, with early adoption permitted. These amendments are not ex-
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
23
pected to have any impact to the Group as the Group does not have any bearer plants.
Amendments to IAS 27: Equity Method in Separate Financial Statements
The amendments will allow entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in
their separate financial statements. Entities already applying IFRS and electing to change to the equity method in its separate financial
statements will have to apply that change retrospectively. For first-time adopters of IFRS electing to use the equity method in its sepa-
rate financial statements, they will be required to apply this method from the date of transition to IFRS. The amendments are effective for
annual periods beginning on or after 1 January 2016, with early adoption permitted. These amendments will not have any impact on the
Group’s consolidated financial statements.
Summary of significant accounting policies
Revenue recognition
Gross written premiums
Gross written premiums comprise the total premiums receivable for the whole period of cover provided by contracts entered into during
the accounting period. They are recognised on the date on which the policy commences. Premiums include any adjustments arising in
the accounting period for premiums receivable in respect of business written in prior accounting periods. Rebates that form part of the
premium rate, such as no-claim rebates, are deducted from the gross premium; others are recognised as an expense. Premiums also
include estimates for pipeline premiums, representing amounts due on business written but not yet notified. The Group generally esti-
mates the pipeline premium based on management’s judgement and prior experience.
Unearned premiums are those proportions of premiums written in a year that relate to periods of risk after the reporting date. Unearned
premiums are calculated on a pro rata basis. The proportion attributable to subsequent periods is deferred as a provision for unearned
premiums.
Reinsurance premiums
Gross general reinsurance premiums written comprise the total premiums payable for the whole cover provided by contracts
entered into the period and are recognised on the date on which the policy incepts.
Premiums include any adjustments arising in the accounting period in respect of reinsurance contracts incepting in prior ac-
counting periods.
Unearned reinsurance premiums are those proportions of premiums written in a year that relate to periods of risk after the
reporting date. Unearned reinsurance premiums are deferred over the term of the underlying direct insurance policies for
risks-attaching contracts and over the term of the reinsurance contract for losses occurring contracts.
Commission income
Insurance and investment contract policyholders are charged for policy administration services, investment management servic-
es, surrenders and other contract fees. These fees are recognised as revenue over the period in which the related services are
performed. If the fees are for services provided in future periods, then they are deferred and recognised over those future periods.
Claims
Claims, comprising amounts payable to contract holders and third parties and related loss adjustment expenses, net of salvage
and other recoveries, are charged to income as incurred. Claims comprise the estimated amounts payable, in respect of claims
reported to the Group and those not reported at the consolidated statement of financial position date.
The Group generally estimates its claims based on appointed loss adjusters or leading underwriters’ recommendations. In addi-
tion a provision based on management’s judgement and the Group’s prior experience is maintained for the cost of settling claims
incurred but not reported at the consolidated statement of financial position date.
Policy acquisition costs
Policy acquisition costs represent commissions paid to intermediaries and other direct costs incurred in relation to the acquisition and
renewal of insurance contracts which are deferred and expensed over the terms of the insurance contracts to which they relate as pre-
miums are earned.
24
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
Liability adequacy test
At each statement of financial position date the Group assesses whether its recognised insurance liabilities are adequate using current
estimates of future cash flows under its insurance contracts. If that assessment shows that the carrying amount of its unearned pre-
miums (less related deferred policy acquisition costs) is inadequate in the light of estimated future cash flows, the entire deficiency is
immediately recognised in income and an unexpired risk provision created.
The Group does not discount its liability for unpaid claims as substantially all claims are expected be paid within one year of the state-
ment of financial position date.
Reinsurance
The Group cedes insurance risk in the normal course of business for all of its businesses. Reinsurance assets represent balances
due from reinsurance companies. Amounts recoverable from reinsurers are estimated in a manner consistent with the outstand-
ing claims provision or settled claims associated with the reinsurer’s policies and are in accordance with the related reinsurance
contract.
Reinsurance assets are reviewed for impairment at each reporting date, or more frequently, when an indication of impairment aris-
es during the reporting year. Impairment occurs when there is objective evidence as a result of an event that occurred after initial
recognition of the reinsurance asset that the Group may not receive all outstanding amounts due under the terms of the contract
and the event has a reliably measurable impact on the amounts that the Group will receive from the reinsurer. The impairment loss
is recorded in the consolidated statement of income.
Gains or losses on buying reinsurance are recognised in the consolidated statement of income immediately at the date of pur-
chase and are not amortised.
Ceded reinsurance arrangements do not relieve the Group from its obligations to policyholders.
The Group also assumes reinsurance risk in the normal course of business for life insurance and non-life insurance contracts
where applicable. Premiums and claims on assumed reinsurance are recognised as revenue or expenses in the same manner as
they would be if the reinsurance were considered direct business, taking into account the product classification of the reinsured
business. Reinsurance liabilities represent balances due to reinsurance companies. Amounts payable are estimated in a manner
consistent with the related reinsurance contract.
Premiums and claims are presented on a gross basis for both ceded and assumed reinsurance.
Reinsurance assets or liabilities are derecognised when the contractual rights are extinguished or expire or when the contract is
transferred to another party.
Reinsurance contracts that do not transfer significant insurance risk are accounted for directly through the statement of financial
position. These are deposit assets or financial liabilities that are recognised based on the consideration paid or received less any
explicit identified premiums or fees to be retained by the reinsured.
Investment income on these contracts is accounted for using the effective interest rate method when accrued.
Interest income
Interest income included in investment income is recognised as the interest accrues using the effective interest method, under
which the rate used exactly discounts estimated future cash receipts through the expected life of the financial asset to the net
carrying amount of the financial asset.
Dividend income
Dividend revenue included in investment income is recognised when right to receive the payment is established.
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
25
Premises and equipment
Premises and equipment are stated at cost less accumulated depreciation and any impairment in value. Depreciation is calculated on a
straight-line basis over the estimated useful lives using the following are the estimated useful lives (Note 3).
Office buildings
Office furniture
Computers
Equipment
Leasehold improvement
Vehicles
Years
20
5
3
4
5
5
An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the differ-
ence between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated income statement when
the asset is derecognised.
The assets’ residual values, useful lives and method of depreciation are reviewed and adjusted if appropriate at each financial year-end.
Impairment reviews take place when events or changes in circumstances indicate that the carrying value may not be recoverable. Im-
pairment losses are recognised in the consolidated statement of income as an expense.
Intangible assets
Intangible assets acquired through business combinations are recorded at their fair value on that date. Other intangible assets are
measured on initial recognition at cost.
Intangible assets with finite lives are amortised over the useful economic lives, while intangible assets with indefinite useful lives are as-
sessed for impairment at each reporting date or when there is an indication that the intangible asset may be impaired.
Internally generated intangible assets are not capitalised and are expensed in the consolidated statement of income.
Indications of impairment of intangible assets are reviewed and their useful economic lives are reassessed at each reporting date. Ad-
justments are reflected in the current and subsequent periods.
Intangible assets include computer software and software licenses. These intangible assets are amortised on a straight line basis over
their estimated economic useful lives of 5 years.
Impairment and uncollectibility of financial assets
An assessment is made at each consolidated statement of financial position date to determine whether there is objective evidence that
a specific financial asset may be impaired. If such evidence exists, any impairment loss is recognised in the consolidated statement of
income.
Impairment is determined as follows:
a) For assets carried at fair value, impairment is the difference between cost and fair value;
b) For assets carried at cost, impairment is the difference between cost and the present value of future cash flows discounted at the
current market rate of return for a similar financial asset; and
c) For assets carried at amortised cost, impairment is based on estimated cash flows discounted at the original effective interest rates.
The group treats financial assets available-for-sale as impaired when there has been a significant or prolonged decline in the fair value
below cost or where other objective evidence of impairment exists.
26
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
The determination of what is “significant” or “prolonged” requires considerable judgement. In addition, the Group evaluates other factors,
including normal volatility in share prices for quoted equities and the future cash flows and discount factors for unquoted equities.
Impairment is recognised in the income statement. If, in a subsequent period, the amount of the impairment loss decreases, the carrying
value of the asset is increased to its recoverable amount. The amount of the reversal is recognised in the income statement except for
equity instruments classified as available for sale investments for which the reversal is recognized in the statement of other comprehen-
sive income.
Derecognition of financial instruments
The derecognition of a financial instrument takes place when the Group no longer controls the contractual rights that comprise the fi-
nancial instrument, which is normally the case when the instrument is sold, or all the cash flows attributable to the instrument are passed
through to an independent third party.
Investment in associates
The Group’s investment in its associates is accounted for using the equity method of accounting. An associate is an entity in which
the Group has significant influence and which is neither a subsidiary nor a joint venture.
Under the equity method, the investment in the associate is carried in the statement of financial position at cost plus post-ac-
quisition changes in the Group’s share of net assets of the associate. Goodwill relating to an associate is included in the carrying
amount of the investment and is neither amortised nor individually tested for impairment.
The consolidated statement of income reflects the share of the results of operations of the associate. Where there has been a
change recognised directly in the equity of the associate, the Group recognises its share of any changes and discloses this, when
applicable, in the consolidated statement of changes in equity. Profits or losses resulting from transactions between the Group
and the associate are eliminated to the extent of the interest in the associate.
The share of profit of the associate is shown on the face of the consolidated statement of income. This is profit attributable to
equity holders of the associate and, therefore, is profit after tax and non-controlling interests in the subsidiaries of the associates.
The financial statements of the associate are prepared for the same reporting period as the Group. Where necessary, adjust-
ments are made to bring its accounting policies in line with the Group’s.
After application of the equity method, the Group determines whether it is necessary to recognise an additional impairment loss
on the Group’s investment in associates. The Group determines at each reporting date, whether there is any objective evidence
that the investment in the associate is impaired. If this is the case, the Group calculates the amount of impairment as the difference
between the recoverable amount of the associate and its carrying value and recognises the amount in the ‘share of profit of an
associate’ in the consolidated income statement.
Upon loss of significant influence over the associate, the Group measures and recognises any remaining investment at its fair
value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the
remaining investment and proceeds from disposal is recognised in profit or loss.
Investment properties
Investment properties are measured initially at cost, including transaction costs. The carrying amount includes the cost of re-
placing part of an existing investment property at the time that cost is incurred if the recognition criteria are met; and excludes the
costs of day to day servicing of an investment property. Subsequent to initial recognition, investment properties are stated at fair
value, which reflects market conditions at the reporting date. Gains or losses arising from changes in the fair values of investment
properties are included in the consolidated statement of income in the period in which they arise.
Investment properties are derecognised when either they have been disposed of or when the investment property is permanently
withdrawn from use and no future economic benefit is expected from its disposal.
The difference between the net disposal proceeds and the carrying amount of the asset is recognised in the consolidated state-
ment of income in the period of derecognition.
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
27
Transfers are made to or from investment property only when there is a change in use. For a transfer from investment property
to owner occupied property, the deemed cost for subsequent accounting is the fair value at the date of change in use. If owner
occupied property becomes an investment property, the Group accounts for such property in accordance with the policy stated
under property, plant and equipment up to the date of change in use.
Financial assets
Financial assets within the scope of IAS 39 are classified as financial assets at fair value through profit or loss, held-to-maturity invest-
ments or available-for-sale financial assets. The Group determines the classification of its financial assets at initial recognition. All finan-
cial assets are recognised initially at fair value plus, in the case of investments not at fair value through profit or loss, directly attributable
transaction costs.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the
marketplace (regular way trades) are recognised on the trade date, i.e., the date that the Group commits to purchase or sell the asset.
The subsequent measurement of financial assets depends on their classification as follows:
Insurance receivables
Insurance companies and intermediaries receivables are recognised when due and measured on initial recognition at the fair value of
the consideration received or receivable. Subsequent to initial recognition, insurance receivables are measured at amortised cost, using
the effective interest rate method. The carrying value of insurance receivables is reviewed for impairment whenever events or circum-
stances indicate that the carrying amount may not be recoverable, with the impairment loss recorded in the consolidated income state-
ment.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon
initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the
purpose of selling or repurchasing in the near term. Financial assets at fair value through profit and loss are carried in the state-
ment of financial position at fair value with changes in fair value recognised in the consolidated statement of income. The Group
has not designated any financial assets upon initial recognition as at fair value through consolidated income statement.
Held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturities are classified as held-to-maturity when the
Group has the positive intention and ability to hold it to maturity. After initial measurement held-to-maturity investments are measured at
amortised cost using the effective interest rate method, less impairment. Impairment losses are recognised in the consolidated state-
ment of income.
Available-for-sale financial investments
Available-for-sale financial investments include equity and debt securities. Equity investments classified as available-for sale are those,
which are neither classified as held for trading nor designated at fair value through profit or loss. Debt securities in this category are those
which are intended to be held for an indefinite period of time and which may be sold in response to needs for liquidity or in response to
changes in the market conditions. After initial measurement, available-for-sale financial investments are subsequently measured at fair
value with unrealised gains or losses recognised as other comprehensive income in the available-for-sale reserve until the investment is
derecognised, at which time the cumulative gain or loss is recognised in other operating income, or determined to be impaired, at which
time the cumulative loss is recognised in the consolidated statement of income and removed from the available-for-sale reserve.
Cash and cash equivalents
For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash in hand, bank balances, and
short-term deposits with an original maturity of three months or less.
Provisions
Provisions are recognised when the Group has an obligation (legal or constructive) as a result of a past event, and the costs to settle the
obligation are both probable and able to be reliably measured.
28
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
Cash settled - Share based payment plan
A phantom share option plan linked to the value of an ordinary share of the Group as approved by the Board of directors has been
declared during 2011. The scheme is applicable to senior executives with more than 12 months service. The amount of bonus is
determined by reference to the increase in the book value of shares covered by the option. No shares are actually issued or trans-
ferred to the option holder on the exercise of the option.
The options vest equally over a span of 5 years from the grant date. The bonus due amounts to the excess of book value on vest-
ing date over grant date plus an additional 20% on the value of the excess.
Treasury shares
Own equity instruments that are reacquired (treasury shares) are recognised at cost and deducted from equity. No gain or loss is recog-
nised in profit or loss on the purchase, sale, issue or cancellation of the Group’s own equity instruments. Any difference between the carrying
amount and the consideration, if reissued, is recognised in share premium.
Offsetting
Financial assets and financial liabilities are offset and the net amount reported in the consolidated statement of financial position
only when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis,
or to realise the assets and settle the liability simultaneously. Income and expense is not offset in the consolidated statement of
income unless required or permitted by any accounting standard or interpretation.
Foreign currencies
The Group’s consolidated financial statements are presented in United States Dollars, which is also the functional currency of the Group.
Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are meas-
ured using that functional currency.
Transactions and balances
Transactions in foreign currencies are initially recorded by the Group entities at their respective functional currency rates pre-
vailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the
functional currency spot rate of exchange ruling at the reporting date. All differences are taken to the consolidated statement
of income. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are
translated using the exchange rates at the date when the fair value is determined.
Group companies
The assets and liabilities of foreign operations are translated into United States Dollars at the rate of exchange prevailing at the re-
porting date and their statements of income are translated at exchange rates prevailing at the date of the transactions. The exchange
differences arising on the translation are recognised in consolidated statement of comprehensive income. On disposal of a foreign
operation, the component of other comprehensive income relating to that particular foreign operation is recognised in the consoli-
dated statement of income.
Taxation
Current income tax
Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the
reporting date in the countries were the group operates and generates taxable income.
Deferred tax
Deferred tax is provided using the liability method on temporary differences at the reporting date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes.
Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses,
to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry
forward of unused tax credit and unused tax losses can be utilised.
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
29
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that
sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the
liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Leasing
The Group has no finance lease arrangements.
The determination of whether an arrangement is a lease, or contains a lease, is based on the substance of the arrangement at the incep-
tion date and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets
and the arrangement conveys a right to use the asset, even if that right is not explicitly specified in an arrangement.
Group as a lessee
Finance leases that transfer to the Group substantially all of the risks and benefits incidental to ownership of the leased item, are
capitalised at the commencement of the lease at the fair value of the leased property or, if lower, at the present value of the minimum
lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a
constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance cost in the consolidated
income statement.
Leased assets are depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Group will obtain
ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease
term.
Leases that do not transfer to the Group substantially all the risks and benefits incidental to ownership of the leased items are oper-
ating leases. Operating lease payments are recognised as an expense in the income statement on a straight line basis over the lease
term. Contingent rentals are recognised as an expense in the period in which they are incurred.
Group as a lessor
Leases in which the Group does not transfer substantially all of the risks and benefits of ownership of the asset are classified as
operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset
and recognised over the lease term on the same bases as rental income. Rental income from operating leases is recognised on a
straight-line basis over the term of lease.
Fair values
The fair value of financial instruments that are actively traded in organised financial markets is determined by reference to quoted
market bid prices for assets and offer prices for liabilities, at the close of business on the consolidated statement of financial position
date. If quoted market prices are not available, reference is also be made to broker or dealer price quotations.
For financial instruments where there is not an active market, the fair value is determined by using valuation techniques. Such tech-
niques include using recent arm’s length transactions, reference to the current market value of another instrument which is substan-
tially the same and/or discounted cash flow analysis. For discounted cash flow techniques, estimated future cash flows are based on
management’s best estimates and the discount rate used is a market related rate for a similar instrument.
If the fair value cannot be measured reliably, these financial instruments are measured at cost, being the fair value of the consider-
ation paid for the acquisition of the investment or the amount received on issuing the financial liability. All transaction costs directly
attributable to the acquisition are also included in the cost of the investment.
30
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
Judgements
In the process of applying the Group’s accounting policies, management has made the following judgements, apart from those involving
estimations, which have the most significant effect in the amounts recognised in the financial statements:
Operating lease commitments-group as lessor
The Group has entered into commercial property leases on its premises and equipment. The Group, as a lessor, has determined, based
on an evaluation of the terms and conditions of the arrangements, that it retains all the significant risks and rewards of ownership of its
property and so accounts for them as operating leases.
Going concern
The Group’s management has made an assessment of the Group’s ability to continue as a going concern and is satisfied that the Group
has the resources to continue in business for the foreseeable future. Furthermore, the management is not aware of any material un-
certainties that may cast significant doubt upon the Group’s ability to continue as a going concern. Therefore, the financial statements
continue to be prepared on the going concern basis.
.Classification of investments
Management decides on acquisition of an investment whether it should be classified as held for trading or available for sale or held to
maturity.
The group classifies investments as trading if they are acquired primarily for the purpose of making a short term profit by the dealers.
Financial assets are classified as held to maturity if the Group has the positive intention and ability to hold up till maturity.
All other investments are classified as financial assets available -for- sale.
Estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the consolidated statement of financial
position date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year are discussed below:
Valuation of outstanding claims, whether reported or not
Considerable judgement by management is required in the estimation of amounts due to contract holders arising from claims made
under insurance contracts. Such estimates are necessarily based on assumptions about several factors involving varying, and possibly
significant, degrees of judgement and uncertainty and actual results may differ from management’s estimates resulting in future chang-
es in estimated liabilities.
In particular, estimates have to be made both for the expected ultimate cost of claims reported at the consolidated statement of financial
position date and for the expected ultimate cost of claims incurred but not yet reported (IBNR) at the consolidated statement of financial
position date. The primary technique adopted by management in estimating the cost of notified and IBNR claims, is that of using past
claim settlement trends to predict future claims settlement trends.
Claims requiring court or arbitration decisions are estimated individually. Independent loss adjustors normally estimate property claims.
Management reviews its provisions for claims incurred, and claims incurred but not reported, on a quarterly basis.
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
31
Investment properties
Investment properties are stated at fair value which is determined based on valuations performed by professional independent valuers.
Impairment losses on available for sale investments
The Group treats available-for-sale equity investments as impaired when there has been a significant or prolonged decline in the fair
value below its cost or where other objective evidence of impairment exists. The determination of what is “significant” or “prolonged”
requires considerable judgement. Where fair values are not available, the recoverable amount of such investment is estimated to test
for impairment. In addition, the Group evaluates other factors, including normal volatility in share price for quoted equities and the future
cash flows and discount factors for unquoted equities.
Impairment losses on held-to-maturity investments
The Group reviews its individually significant held-to-maturity investments at each statement of financial position date to assess wheth-
er an impairment loss should be recorded in the consolidated statement of income. In particular, management judgement is required
in the estimation of the amount and timing of future cash flows when determining the impairment loss. These estimates are based on
assumptions about a number of factors and actual results may differ, resulting in future changes to the allowance.
Impairment losses on receivables
Receivables that are individually assessed for impairment and for which an impairment loss is or continues to be recognised are not
included in a collective assessment of impairment. This assessment of impairment requires judgment. In making this judgment, the
Company evaluates credit risk characteristics that consider past-due status being indicative of the inability to pay all amounts due as
per contractual terms.
32
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
3 - PREMISES AND EQUIPMENT
Office
building
Office
Leasehold
furniture Computers Equipment
improvements Vehicles
Work in
progress
USD
USD
USD
USD
USD
USD
USD
Total
USD
Cost
At 1 January 2014
2,656,651
1,266,250
886,319
255,660
1,063,978
765,759
51,700
6,946,317
Additions
Transfers
4,927
81,484
3,757
16,411
228,162
16,304
351,045
-
24,509
-
-
43,495
-
(68,004)
-
Written off and disposals
-
-
(881)
(626)
-
(24,563)
At 31 December 2014
2,656,651 1,295,686
966,922
258,791
1,123,884 969,358
Depreciation
At 1 January 2014
341,830
778,802
595,820
185,797
826,450
367,703
Deprecation for the year
102,536
194,846
187,807
30,986
201,641
152,442
Written off and disposals
-
-
(881)
(69)
-
(24,563)
At 31 December 2014
444,366
973,648
782,746
216,714
1,028,091 495,582
Net carrying amount
-
-
-
-
-
-
(26,070)
7,271,292
3,096,402
870,258
(25,513)
3,941,147
At 31 December 2014
2,212,285 322,038
184,176
42,077
95,793 473,776
- 3,330,145
Cost
At 1 January 2013
1,867,389 1,318,770
797,733
243,810
1,026,403
515,759
92,057
5,861,921
1,943
91,396
14,042
23,552 250,000
51,700
432,633
Additions
Transfers
-
-
78,034
Transfers from investment
properties(note 6)
789,262
-
-
-
-
-
14,023
-
-
-
(92,057)
-
-
-
789,262
(137,499)
Written off and disposals
-
(132,497)
(2,810)
(2,192)
-
-
At 31 December 2013
2,656,651 1,266,250
886,319
255,660
1,063,978 765,759
51,700 6,946,317
Depreciation
At 1 January 2013
240,861
648,814
422,276
150,117
589,375
284,558
Deprecation for the year
100,969
246,784
176,354
35,851
237,075
83,145
Written off and disposals
-
(116,796)
(2,810)
(171)
-
-
At 31 December 2013
341,830
778,802
595,820
185,797
826,450
367,703
-
-
-
-
2,336,001
880,178
(119,777)
3,096,402
Net carrying amount
At 31 December 2013
2,314,821 487,448
290,499
69,863
237,528 398,056
51,700 3,849,915
The depreciation charge for the year of USD 870,258 (2013: USD 880,178) has been included in general and administrative expenses.
Fully depreciated premises and equipment still in use amounted to USD 2,249,547 as at 31 December 2014 (2013: 589,615).
4 - INTANGIBLE ASSETS
Cost
Opening balance
Additions
Closing balance
Amortisation
Opening balance
Amortisation for the year
Closing balance
Net book value
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014 33
Computer software / licenses
2014
USD
937,447
252,683
1,190,130
757,058
99,062
856,120
2013
USD
926,277
11,170
937,447
675,779
81,279
757,058
334,010
180,389
5 - INVESTMENT IN ASSOCIATES
The Group has a 33% equity ownership interest in companies registered in Lebanon as shown below:
Country of incorporation
Ownership
Star Rock SAL Lebanon
Sina SAL Lebanon
Silver Rock SAL Lebanon
Golden Rock SAL Lebanon
Lebanon
Lebanon
Lebanon
Lebanon
Movement on investment in associates is as follows:
Opening balance
Share of (loss) profit of results of associates
Dividends received
2014
2013
33%
33%
33%
33%
33%
33%
33%
33%
2014
USD
2013
USD
11,703,630
12,228,572
(184,651)
(431,645)
408,709
(933,651)
11,087,334
11,703,630
34
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
The following table includes summarised information of the Group’s investments in associates:
Share of associates’ statement of financial position
Current assets
Non-current assets
Current liabilities
Net assets
Share of associates’ revenues and results
Revenues
(Loss)/ profit
2014
USD
2013
USD
575,058
16,949,782
(6,437,506)
904,393
16,908,960
(6,109,723)
11,087,334
11,703,630
565,983
650,485
(184,651)
408,709
Investment properties of the associates are stated at fair value, which has been determined based on valuations performed by
professional independent valuers who are specialists in valuing these types of investment properties. The fair value represents the
amount, which the assets could be exchanged between a knowledgeable, willing seller in an arm’s length transaction at the date of
valuation. All the investment properties generated rental income during the current period and the prior years.
6 - INVESTMENT PROPERTIES
The following table includes summarised information of the Group’s investment properties:
Opening balance
Additions
Closing balance
Opening balance
Transfers to office building (Note 3) **
Closing balance
2014
Commercial
building
USD
Land*
USD
Total
USD
20,088,650
61,265
8,461,850
-
28,550,500
61,265
20,149,915
8,461,850
28,611,765
2013
Commercial
building
USD
Land*
USD
Total
USD
20,877,912
(789,262)
8,461,850
-
29,339,762
(789,262)
20,088,650
8,461,850
28,550,500
* Land amounting to USD 8,461,850 as at 31 December 2014 (2013: USD 8,461,850) is registered in the name of the Directors of the Group. The Group
has obtained an irrevocable proxy over this investment property.
** During 2013, there was an addition to the portion of commercial building used as an office premises for an amount of USD 789,262 which has re-
duced the share of building treated as an investment property.
The carrying amount approximates the fair value of the investment properties based on valuations performed by independent valuer.
7 - INVESTMENTS
Held to maturity
Unquoted bonds*
Held for trading
Quoted funds
Available-for-sale
Quoted bonds and debt securities with fixed interest rate
Quoted equities
Quoted funds and alternative investments
Unquoted equities
* Maturity of these bonds as at 31 December 2014 are as follows:
Maturity
6 December 2015
27 October 2017
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
35
2014
USD
2013
USD
4,355,931
4,440,677
805,647
1,344,402
101,753,733
63,060,020
7,288,261
5,757,440
177,859,454
183,021,032
107,360,804
71,331,460
7,392,004
6,428,075
192,512,343
198,297,422
Carrying amount
Effective interest
rate
1,355,931
3,000,000
4,355,931
10%
2%
Provision for impairment for equity investments charged to the consolidated statement of income amounted to USD 1,581,007 (2013:
USD 895,203).
8 - DEFERRED POLICY ACQUISITION COSTS
Opening balance
Acquisition costs
Charged to consolidated income statement
9 - INSURANCE RECEIVABLES
Receivables from insurance companies and intermediaries
Less: Provision for doubtful debts
2014
USD
2013
USD
27,621,280
30,754,592
49,288,426
44,534,036
(49,409,574)
(47,667,348)
27,500,132
27,621,280
2014
USD
2013
USD
98,214,349
97,109,788
(2,864,350)
(2,000,000)
95,349,999
95,109,788
36
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
The movement in the provision of doubtful debts is as follows:
Opening balance
Provision for the year
Bad debts written off
Recoveries
2014
USD
2013
USD
(2,000,000)
(1,800,000)
(1,000,000)
(494,000)
-
135,650
294,000
-
(2,864,350)
(2,000,000)
Out of the above amounts, only USD 15,823 (2013: USD 17,951) are due for more than twelve months of the statement of financial
position date (Note 26). It is not the practice of the Group to hold collaterals as security, therefore the receivable are unsecured.
10 - OTHER ASSETS
Accrued interest income
Prepaid expenses
Refundable deposits
Employees receivables
Funds held in trust account with reinsurance company
Income tax receivables
*Trade receivable
Others
2014
USD
2013
USD
1,584,685
1,532,759
801,493
296,427
11,361
7,500,000
194,072
52,831
514,221
647,662
108,746
9,550
-
175,332
73,933
231,297
10,955,090
2,779,279
* This amount represents the balances due from the Specialty Malls customers against rental income. There are no impaired trade
receivables and management believes that the trade receivables will be recovered in full. The aging of the trade receivables is
less than 180 days.
11 - UNEARNED PREMIUMS
2014
Reinsurers’
share
USD
Gross
USD
Net
USD
Gross
USD
2013
Reinsurers’
share
USD
Net
USD
Opening balance
Premiums written
Premiums earned
139,154,406
(22,136,020)
117,018,386
140,212,806
(23,785,793)
116,427,013
251,525,833
(67,057,242)
184,468,591
240,008,259
(58,767,697)
181,240,562
(251,084,623)
61,543,891
(189,540,732)
(241,066,659)
60,417,470
(180,649,189)
139,595,616 (27,649,371)
111,946,245
139,154,406
(22,136,020)
117,018,386
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
37
12 - OUTSTANDING CLAIMS
Movement in outstanding claims
2014
Reinsurers’
share
USD
Gross
USD
Net
USD
Gross
USD
2013
Reinsurers’
share
USD
Net
USD
At the beginning of the year
Reported claims
164,884,549
(47,020,671)
117,863,878
147,595,718
(54,000,287)
93,595,431
Claims incurred but not
reported
87,657,000
(16,282,134)
71,374,866
70,812,000
(13,812,000)
57,000,000
252,541,549 (63,302,805)
189,238,744
218,407,718
(67,812,287)
150,595,431
Claims paid
(119,968,090)
25,767,131
(94,200,959)
(88,887,197)
28,755,669
(60,131,528)
Provided during the
year related to current
accident year
Provided during the
year related to previous
accident years
152,384,189
(36,534,522)
115,849,667
159,549,092
(35,996,585)
123,552,507
(8,490,197)
(7,002,740)
(15,492,937)
(36,528,064)
11,750,398
(24,777,666)
At the end of the year
276,467,451
(81,072,936)
195,394,515
252,541,549
(63,302,805)
189,238,744
At the end of the year
Reported claims
171,474,760
(49,580,245)
121,894,515
164,884,549
(47,020,671)
117,863,878
Claims incurred but not
reported
104,992,691
(31,492,691)
73,500,000
87,657,000
(16,282,134)
71,374,866
276,467,451
(81,072,936)
195,394,515
252,541,549
(63,302,805)
189,238,744
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13 -CASH AND BANK BALANCES
Cash and bank balances
Time deposits – short term
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
39
2014
USD
2013
USD
106,193,838
125,910,905
101,372,446
108,084,662
232,104,743
209,457,108
The time deposits, which are denominated in US Dollars and US Dollars pegged currencies, are made for varying periods between
one month to one year (2013: between one month to one year) depending on the immediate cash requirements of the Group.
All deposits earned an average variable interest rate of 2.91% (2013: 3.07%).
14 -ISSUED SHARE CAPITAL
Shares of USD 1 each
15 - TREASURY SHARES
Authorised, issued and fully paid
2014
USD
2013
USD
143,375,678
143,375,678
The general shareholders meeting approved in its extraordinary meeting dated 24 November 2013 the purchase of 5.51% of issued
stock to be treated as treasury stock in accordance with the DIFC laws and regulations. The number of treasury shares as of 31
December 2013 amounted to 7,900,000 shares. These shares were recorded at an amount of USD 12,000,000 as of 31 December
2014 (2013: 12,000,000).
16 - DIVIDENDS PAID
At a meeting held on 20 March 2014, the shareholders resolved to pay a dividend of USD 0.05 (2013: USD 0.05) per share
amounting to USD 6,773,784 (2013: USD 7,168,784) related to the year ended 31 December 2013. Further, the shareholders also
resolved on 6 November 2014 to pay interim dividends of USD 0.05 (2013: USD 0.04) per share amounting to USD 6,773,784 (2013:
USD 5,419,027) related to the current year.
17 - OTHER LIABILITIES
Accounts payable
Accrued expenses
2014
USD
662,056
4,237,342
4,899,398
2013
USD
429,311
2,681,962
3,111,273
40
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
18 - INSURANCE PAYABLES
Payables due to insurance companies and intermediaries
Reinsurers – amounts due in respect of ceded premium
2014
USD
2013
USD
2,773,562
17,572,383
20,345,945
940,890
23,300,311
24,241,201
19 - UNEARNED COMMISSIONS
The movement in unearned commissions in the consolidated statement of financial position is as follows:
As at 1 January
Commissions received
Commissions earned
As at 31 December
20 - INVESTMENT INCOME
Interest
Dividends
Gain on sale of available-for-sale investments
Fair value changes of held for trading investments
Impairment of available-for-sale investments (note 7)
Investments custodian fees and other investments expenses
Rental income, net
2014
USD
2013
USD
6,629,187
11,396,540
(10,329,307)
7,696,420
8,717,113
7,262,951
(9,350,877)
6,629,187
2014
USD
2013
USD
7,439,887
2,340,064
7,656,785
(538,755)
(1,581,007)
(1,333,883)
978,640
14,961,731
7,679,292
1,949,238
1,622,258
(3,972)
(895,203)
(1,269,361)
902,949
9,985,201
21 - OTHER EXPENSES
Other expenses represent expenditure incurred during the year in relation to an intended public offering of shares (I.P.O). However,
market conditions were not conducive to proceed with the I.P.O.
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
41
22 - COMMITMENTS AND CONTINGENCIES
As of the date of the financial statements, the Group is contingently liable for the following:
•
•
•
Letters of Guarantee amounting to USD 14,124 (2013: USD 14,124) to the order of the Jordanian Ministry of Trade and Industry with
margin of USD 1,412 (2013: USD 1,412).
Letters of Credit amounting to USD 11,209,398 to the order of reinsurance companies for collateralising insurance contract liabil-
ities in accordance with the reinsurance arrangements (2013: USD 29,258,076).
Letter of Guarantee amounting to USD 375,146 to the order of Friends Provident Life Assurance Ltd. for collateralising rent pay-
ment obligation in one of the Group entity’s office premises (2013: USD 398,258).
23 - RELATED PARTY TRANSACTIONS
Related parties represent major shareholders, associates, directors and key management personnel of the Group and entities
controlled, jointly controlled or significantly influenced by such parties, pricing policies and terms of these transactions are approved
by the Group’s management.
Transactions with related parties included in the consolidated financial statements are as follows:
2014
USD
2013
USD
Consolidated statement of income
Commission paid
Eastern Insurance Brokers Ltd – Owned by immediate family member of the major
shareholder
-
2,532
Compensation of key management personnel of the Group, consisting of salaries and benefits was USD 6,530,043 (2013:
USD 5,268,841). Out of the total amount of key management personnel compensation, an amount of USD 451,682 (2013:
USD 285,533) represents long term benefits. These long term benefits represents a phantom share option plan linked to the
value of an ordinary share of the Group as approved by the Board of directors has been declared during 2011. The scheme
is applicable to senior executives with more than 12 months service. The amount of bonus is determined by reference to the
increase in the book value of shares covered by the option. No shares are actually issued or transferred to the option holder
on the exercise of the option. The options vest equally over a span of 5 years from the grant date. The bonus due amounts to
the excess of book value on vesting date over grant date plus an additional 20% on the value of the excess.
24 - TAX EXPENSE
Tax expense on results of subsidiary resulted from the profit/ losses recorded in International General Insurance Company (UK) Ltd. which
is subject to the United Kingdom income tax laws. Following is the movement on the deferred tax assets:
Opening balance
Tax expense
Ending balance
2014
USD
730,618
(329,834)
400,784
2013
USD
820,542
(89,924)
730,618
42
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
25 - RISK MANAGEMENT
The risks faced by the Group and the way these risks are mitigated by management are summarised below.
Insurance risk
Insurance risk includes the risks of inappropriate underwriting, ineffective management of underwriting, inadequate controls over
exposure management in relation to catastrophic events and insufficient reserves for losses including claims incurred but not
reported.
To manage this risk, the Group’s underwriting function is conducted in accordance with a number of technical analytical protocols
which includes defined underwriting authorities, guidelines by class of business, rate monitoring and underwriting peer reviews.
The risk is further protected by reinsurance programmes which respond to various arrays of loss probabilities.
The Group has in place effective exposure management system. Aggregate exposure is modelled and tested against different
stress scenarios to ensure adherence to Group’s overall risk appetite and alignment with reinsurance programmes and under-
writing strategies.
Loss reserve estimates are inherently uncertain. Reserves for unpaid losses are the largest single component of the liabilities of
the Group. Actual losses that differ from the provisions, or revisions in the estimates, can have a material impact on future earn-
ings and the statement of financial position. The Group has in house experienced actuarial set up reviewing and monitoring the
reserving policy and its implementation at quarterly intervals. They work closely with the underwriting and claims team to ensure
understanding of the Group’s exposure and loss experience.
In addition, the Group receives external independent analysis of its reserve requirements on quarterly basis.
In order to minimise financial exposure arising from large claims, the Group, in the normal course of business, enters into contracts
with other parties for reinsurance purposes. Such reinsurance arrangements provide for greater diversification of business, allow
management to control exposure to potential losses arising from large risks, and provide additional capacity for growth. A signifi-
cant portion of the reinsurance is affected under treaty, facultative and excess-of-loss reinsurance contracts.
Geographical concentration of risks
The Group’s insurance risk based on geographical concentration of risk is illustrated in the table below:
2014
Europe
Middle / Far East & Africa
North America
Rest of the World
Gross written
premiums
Concentration
Percentage
USD
52,906,856
111,946,311
3,957,757
82,714,909
251,525,833
%
21%
44%
2%
33%
2013
Europe
Middle / Far East & Africa
North America
Rest of the World
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
43
Gross written
premiums
USD
Concentration
Percentage
%
42,010,789
100,686,543
2,967,044
94,343,883
240,008,259
18%
42%
1%
39%
Line of business concentration of risk
The Group’s insurance risk based on line of business concentration is illustrated in the table below:
2014
Energy
Property
Engineering
Marine
Reinsurance
Financial
Casualty
Aviation
Ports & Terminals
Political Violence
2013
Energy
Property
Engineering
Marine
Reinsurance
Financial
Casualty
Aviation
Ports & Terminals
Political Violence
Gross written
premiums
USD
Concentration
Percentage
%
100,617,644
38,042,809
15,529,176
7,588,753
16,784,494
16,143,556
13,126,893
8,322,341
19,044,512
16,325,655
251,525,833
40%
15%
6%
3%
7%
6%
5%
3%
8%
7%
Gross written
premiums
USD
Concentration
Percentage
%
96,513,100
45,414,264
11,603,367
13,566,699
19,655,499
16,147,305
5,711,979
9,629,808
14,107,291
7,658,947
240,008,259
40%
19%
5%
6%
8%
7%
2%
4%
6%
3%
44
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
Sensitivities
The analysis below shows the estimated impact on gross and net insurance contracts claims liabilities and on profit before tax, of an
ultimate development on net claims liabilities of 5% different from that reported in the statement of financial position (2013: 5%). The
impact on gross claims liabilities assumes that recovered rates remain constant
Impact on gross insurance
contract claims liabilities
Impact on net insurance
contract claims liabilities
%
USD
USD
Impact
on profit
USD
2014
2013
+ 5
+ 5
13,823,373
9,769,726
(9,769,726)
12,627,077
9,461,937
(9,461,937)
Financial risk
The Group’s principal financial instruments are financial assets available-for-sale, financial assets held for trading, financial assets
held to maturity, receivables arising from insurance, investment in associates, investment properties and reinsurance contracts, and
cash and cash equivalents.
The Group does not enter into derivative transactions.
The main risks arising from the Group’s financial instruments are interest rate risk, foreign currency risk, credit risk, market price risk
and liquidity risk. The board reviews and agrees policies for managing each of these risks and they are summarised below.
Interest rate risk
Interest rate risk arises from the possibility that changes in interest rates will affect future profitability or the fair values of financial
instruments. The Group is exposed to interest rate risk on certain of its investments and cash and cash equivalents. The Group limits
interest rate risk by monitoring changes in interest rates in the currencies in which its cash and interest bearing investments and
borrowings are denominated.
Details of maturities of the major classes of financial assets are as follows:
Less
than 1 year
1 to 5 years
More than 5
years
Non-interest
bearing items
Total
Effective
Interest
Rate on
interest
bearing
assets
2014
USD
USD
USD
USD
USD
(%)
Investments held for trading
-
-
-
805,647
805,647
Available-for-sale investments
11,246,465
75,295,583
15,211,686
76,105,720
177,859,454
Held to maturity investments
1,355,931
3,000,000
-
-
4,355,931
Cash and bank balances
232,104,743
-
-
-
232,104,743
-
3.78
4.42
1.47
244,707,139
78,295,583
15,211,686
76,911,367
415,125,775
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
45
2013
Investments held for trading
-
-
1,344,402
1,344,402
Available-for-sale investments
19,212,887
55,849,807
28,499,244
88,950,405
192,512,343
Held to maturity investments
1,440,677
-
3,000,000
-
4,440,677
Cash and bank balances
209,457,108
-
-
-
209,457,108
-
3.56
4.47
1.78
230,110,672
55,849,807
31,499,244
90,294,807 407,754,530
There is no significant difference between contractual repricing or maturity dates.
The following table demonstrates the sensitivity of income statement to reasonably possible changes in interest rates, with all other
variables held constant.
The sensitivity of the income statement is the effect of the assumed changes in interest rates on the Group’s profit for the year, based
on the floating rate financial assets and financial liabilities held at 31 December.
2014
2013
Increase/decrease
in basis points
+ 25
- 50
+ 25
- 50
Effect on profit
for the year
USD
580,051
(1,160,103)
549,720
(1,099,441)
Foreign currency risk
Foreign currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.
Management believes that there is minimal risk of significant losses due to exchange rate fluctuations since predominantly 71% of
the business transactions are in US Dollars and consequently the Group does not hedge its foreign currency exposure.
Credit risk
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a
financial loss.
The Group is exposed to credit risk primarily from unpaid insurance receivables and fixed income instruments.
The Group has in place credit appraisal policies and procedures for inward business and receivables from insurance transactions
are monitored on an ongoing basis to restrict Group’s exposure to doubtful debts.
The Group has in place security standards applicable to all reinsurance purchases and monitors the financial status of all reinsurance
debtors at regular intervals.
The Group’s portfolio of fixed income investment is managed by the investments committee in accordance with the investment poli-
cy established by the board of directors which has various credit standards for investment in fixed income securities.
46
INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
Reinsurance and fixed income investments are monitored for the occurrence of a downgrade or other changes that might cause
them to fall below the Group’s security standards. If this occurs, management takes appropriate action to mitigate any loss to the
Group.
The Group’s bank balances are maintained with a range of international and local banks in accordance with limits set by the board of
directors.
There are no significant concentrations of credit risk within the Group. The table below provides information regarding the credit risk
exposure of the Group by classifying assets according to the Group’s credit rating of counterparties:
Neither past due nor impaired
Investment
grade
Non investment
grade
(satisfactory)
Non investment
grade
(un-satisfactory)
Past due but
not impaired
USD
USD
USD
USD
Total
USD
2014
Available for sale investments - bonds and
debt securities
98,211,898
3,541,835
Held to maturity investments - bonds and
debt securities
3,000,000
Insurance receivables
Reinsurance share of unearned
premiums
-
-
Reinsurance share of outstanding claims
66,085,198
Deferred XOL premium
Cash and bank balances
-
180,211,320
1,355,931
81,729,144
27,649,371
14,987,738
10,765,781
51,893,423
-
-
-
-
-
-
-
-
-
101,753,733
4,355,931
13,620,855
95,349,999
-
-
-
27,649,371
81,072,936
10,765,781
-
232,104,743
347,508,416
191,923,223
-
13,620,855 553,052,494
2013
Available for sale investments - bonds and
debt securities
101,651,392
5,709,412
Held to maturity investments - bonds and
debt securities
3,000,000
Insurance receivables
Reinsurance share of unearned
premiums
-
-
Reinsurance share of outstanding claims
39,944,033
1,440,677
75,769,440
22,136,020
23,358,772
8,288,678
Deferred XOL premium
Cash and bank balances
-
157,364,065
52,093,043
-
-
-
-
-
-
-
-
-
107,360,804
4,440,677
19,340,348
95,109,788
-
-
-
22,136,020
63,302,805
8,288,678
-
209,457,108
301,959,490
188,796,042
-
19,340,348 510,095,880
INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014 47
The following table provides an aging analysis of receivables arising from insurance and reinsurance contracts past due but not
impaired:
Past due but not impaired
Neither past
due nor
impaired
Up to 90
days
91 to 180
days
181 to 270
days
271 to 360
days
Over 360
days
USD
USD
USD
USD
USD
USD
Total
USD
31 December 2014
81,729,144
10,092,919 2,170,839 699,601
641,673
15,823
95,349,999
31 December 2013
80,178,750
8,938,857
2,205,496
1,914,961
1,853,773
17,951
95,109,788
For assets to be classified as ‘past due and impaired’ contractual payments are in arrears for more than 360 days and an impairment
adjustment is recorded in the consolidated statement of income for this or when collectability of the amount is otherwise assessed
as being doubtful. When the credit exposure is adequately secured, arrears more than 360 days might still be classified as ‘past due
but not impaired’, with no impairment adjustment recorded.
The following table provides an aging analysis of trade receivables arising from Specialty Malls customers past due but not impaired:
Past due but not impaired
Neither
past
due nor
impaired
USD
Up to 90
days
91 to 180 days
Total
USD
USD
USD
31 December 2014
31 December 2013
-
-
52,831
73,933
-
-
52,831
73,933
For assets to be classified as ‘past due and impaired’ contractual payments are in arrears for more than 360 days and an impairment
adjustment is recorded in the consolidated statement of income for this. When the credit exposure is adequately secured, arrears
more than 360 days might still be classified as ‘past due but not impaired”, with no impairment adjustment recorded.
Market price risk
Market price risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices (other than
those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual security,
or its issuer, or factors affecting all securities traded in the market.
The Group’s equity price risk exposure relates to financial assets whose values will fluctuate as a result of changes in market prices.
The following table demonstrates the sensitivity of the profit for the period and the cumulative changes in fair value to reasonably
possible changes in equity prices, with all other variables held constant. The effect of decreases in equity prices is expected to be
equal and opposite to the effect of the increases shown.
48
INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
2014
New York Stock Exchange
Amman Stock Exchange
Saudi Stock Exchange
Qatar Stock Exchange
NASDAQ Dubai
Other quoted
2013
New York Stock Exchange
Amman Stock Exchange
Saudi Stock Exchange
Qatar Stock Exchange
NASDAQ Dubai
Other quoted
Change in
equity price
Effect on profit for
the year
USD
+5%
+5%
+5%
+5%
+5%
+5%
USD
-
-
-
-
-
40,282
Change in
equity price
Effect on profit for
the year
USD
+5%
+5%
+5%
+5%
+5%
+5%
USD
-
-
-
-
-
67,220
Effect on
equit
USD
1,298,470
51,345
618,203
626,106
67,679
855,612
Effect on
equity
USD
964,694
53,085
1,244,885
739,153
554,637
284,447
The Group also has unquoted investments carried at fair value determined based on valuation techniques as per level 2 of fair
value hierarchy.
The Group limits market risk by maintaining a diversified portfolio and by monitoring of developments in equity markets.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its commitments associated with insurance contracts and financial
liabilities as they fall due.
The Group continually monitors its cash and investments to ensure that the Group meets its liquidity requirements. The Group’s
asset allocation is designed to enable insurance liabilities to be met with current assets.
All liabilities are non-interest bearing liabilities.
The table below summarises the maturity profile of the company’s financial liabilities at 31 December based on contractual
undiscounted payments:
INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
49
Less than one year More than one year
USD
USD
No term
USD
Total
USD
193,527,216
97,716,931
4,381,688
20,345,945
5,387,494
82,940,235
41,878,685
517,710
-
-
-
-
-
276,467,451
139,595,616
4,899,398
20,345,945
2,308,926
-
7,696,420
321,359,274
127,645,556
-
449,004,830
189,406,162
104,365,804
3,111,273
24,241,201
4,971,890
63,135,387
34,788,602
-
-
-
-
-
-
1,657,297
-
252,541,549
139,154,406
3,111,273
24,241,201
6,629,187
326,096,330
99,581,286
-
425,677,616
2014
Gross outstanding claims
Gross unearned premiums
Other liabilities
Insurance payable
Unearned commissions
Total liabilities
2013
Gross outstanding claims
Gross unearned premiums
Other liabilities
Insurance payable
Unearned commissions
Total liabilities
50
INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
Maturity analysis of assets and liabilities
The table below shows analysis of assets and liabilities analysed according to when they are expected to be recovered or settled:
ASSETS
Premises and equipment
Intangible assets
Investment in associates
Investments
Investment properties
Deferred policy acquisition costs
Insurance receivables
Other assets
Deferred tax assets
Reinsurance share of unearned premiums
Reinsurance share of outstanding claims
Deferred XOL premium
Cash and bank balances
TOTAL ASSETS
EQUITY AND LIABILITIES
Equity
Issued share capital
Treasury shares
Foreign currency translation reserve
Cumulative changes in fair values of investments
Retained earnings
Total equity
LIABILITIES
Gross outstanding claims
Gross unearned premiums
Other liabilities
Insurance payable
Unearned commissions
Total liabilities
2014
Less than one
year
More than one
year
No term
USD
USD
USD
Total
USD
-
-
-
3,330,145
334,010
-
-
3,330,145
334,010
-
11,087,334
11,087,334
12,602,395
93,507,269
76,911,368
183,021,032
-
19,250,092
95,334,176
10,464,591
-
19,354,560
56,751,055
10,765,781
-
28,611,765
8,250,040
15,823
490,499
400,784
8,294,811
24,321,881
-
-
-
-
-
-
-
-
28,611,765
27,500,132
95,349,999
10,955,090
400,784
27,649,371
81,072,936
10,765,781
232,104,743
-
-
232,104,743
456,627,393
138,945,262
116,610,467
712,183,122
-
-
-
-
-
-
-
-
-
-
143,375,678
143,375,678
(12,000,000)
(12,000,000)
(237,135)
(237,135)
18,900,541
18,900,541
-
-
113,139,208
113,139,208
-
-
263,178,292
263,178,292
-
-
193,527,216
97,716,931
4,381,688
20,345,945
5,387,494
321,359,274
82,940,235
41,878,685
517,710
-
-
-
-
-
276,467,451
139,595,616
4,899,398
20,345,945
2,308,926
-
7,696,420
127,645,556
-
449,004,830
TOTAL EQUITY AND LIABILITIES
321,359,274
127,645,556
263,178,292
712,183,122
INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
51
2013
Less than one
year
More than one
year
No term
USD
USD
USD
Total
USD
-
-
-
3,849,915
180,389
-
-
3,849,915
180,389
-
11,703,630
11,703,630
20,653,564
87,349,051
90,294,807
198,297,422
-
-
28,550,500
28,550,500
20,715,960
95,091,837
2,670,534
-
16,602,015
47,477,104
8,288,678
6,905,320
17,951
108,745
730,618
5,534,005
15,825,701
-
-
-
-
-
-
-
-
27,621,280
95,109,788
2,779,279
730,618
22,136,020
63,302,805
8,288,678
209,457,108
-
-
209,457,108
420,956,800
120,501,695
130,548,937
672,007,432
-
-
-
-
-
-
-
-
143,375,678
143,375,678
(12,000,000)
(12,000,000)
(214,298)
22,821,709
(214,298)
22,821,709
92,346,727
-
-
92,346,727
-
-
246,329,816
246,329,816
189,406,162
63,135,387
104,365,804
34,788,602
3,111,273
24,241,201
4,971,890
-
-
-
-
-
-
252,541,549
139,154,406
3,111,273
24,241,201
6,629,187
1,657,297
-
326,096,330
99,581,286
-
425,677,616
ASSETS
Premises and equipment
Intangible assets
Investment in associates
Investments
Investment properties
Deferred policy acquisition costs
Insurance receivables
Other assets
Deferred tax assets
Reinsurance share of unearned premiums
Reinsurance share of outstanding claims
Deferred XOL premium
Cash and bank balances
TOTAL ASSETS
EQUITY AND LIABILITIES
Equity
Issued share capital
Treasury shares
Foreign currency translation reserve
Cumulative changes in fair values of investments
Retained earnings
Total equity
LIABILITIES
Gross outstanding claims
Gross unearned premiums
Other liabilities
Insurance payable
Unearned commissions
Total liabilities
TOTAL EQUITY AND LIABILITIES
326,096,330
99,581,286
246,329,816
672,007,432
Capital management
The Group manages its capital by ‘Enterprise Risk Management’ techniques, using a dynamic financial analysis model. The Asset
Liability match is reviewed and monitored on regular basis to maintain a strong credit rating and healthy capital adequacy ratios to
support its business objectives and maximise shareholders’ value.
Adjustments to capital levels are made in light of changes in market conditions and risk characteristics of the Group’s activities.
52
INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
Fair value
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation techniques:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or
indirectly; and
Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.
Held for trading
Available-for-sale
Investment properties
Held for trading
Available-for-sale
Investment properties
Level 1
USD
805,647
172,102,014
-
31 December 2014
Level 2
USD
-
5,757,440
28,611,765
Total
USD
805,647
177,859,454
28,611,765
172,907,661
34,369,205
207,276,866
Level 1
USD
1,344,402
186,084,268
-
187,428,670
31 December 2013
Level 2
USD
-
6,428,075
28,550,500
34,978,575
Total
USD
1,344,402
192,512,343
28,550,500
222,407,245
There were no transfers between Level 1, 2 and 3 during the year or in either the years ended 31 December 2014 or
31 December 2013.
There are no level 3 investments.
INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2014
53
26 - COMPARATIVE FIGURES
Some of 2013 balances were reclassified to correspond with 31 December 2014. Classifications have no effect on net profit
and equity.
Reinsurance assets*
Reinsurance share of unearned premiums*
Reinsurance share of outstanding claims*
Deferred XOL premium*
Total
Insurance contracts liabilities*
Gross outstanding claims*
Gross unearned premiums*
INVESTMENTS**
CASH AND BANK BALANCES**
TOTAL
Reported in
previous year
USD
93,727,503
-
-
-
93,727,503
Reclassifications
USD
(93,727,503)
22,136,020
63,302,805
8,288,678
-
391,695,955
(391,695,955)
-
-
391,695,955
202,096,288
205,658,242
407,754,530
252,541,549
139,154,406
-
(3,798,866)
3,798,866
-
Reclassified
in current year
USD
-
22,136,020
63,302,805
8,288,678
93,727,503
-
252,541,549
139,154,406
391,695,955
198,297,422
209,457,108
407,754,530
*
In accordance with the industry’s best practice, line items constituting “Reinsurance assets’ and ‘Insurance contract liabilities’ are separately
disclosed on the face of statement of financial position.
** Reclassification of cash held under investment portfolios from “Investments” reflected within line item “Quoted funds and alternative
investments” to “Cash and bank balances”.
27 - SUBSEQUENT EVENTS
There have been no material events between 31 December 2014 and the date of this report which are required to be
disclosed.
INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED
IGI OFFICES
54
International General Insurance Holdings Limited
IGI Underwriting Company Limited
Address:
Office 606, Level 6, Tower 1
Al Fattan Currency House,
Dubai International Financial Centre,
P.O. Box 506646, Dubai
United Arab Emirates
Telephone: +971 4 4416797
Facsimile: +971 4 441 6514
Address:
74 Abdel Hamid Sharaf St.
P.O. Box 941428
Amman 11194
Jordan
Telephone: +962 6 562 2009
Facsimile: +962 6 566 2085
Regulated by the Jordan Insurance Commission
International General Insurance Company Limited
International General Insurance Company (UK) Limited
Address:
44 Church Street
Hamilton HM 12
Bermuda
Telephone: +1 (441) 295 3688
Facsimile: +1 (441) 295 2584
Address:
15-18 Lime Street
London EC3M 7AN
England
Telephone: +44 (0) 20 7220 0100
Facsimile: +44 (0) 20 7220 0101
Regulated by the Bermuda Monetary Authority
Regulated by the UK Financial Conduct Authority
International General Insurance Company (Dubai) Limited
Address:
Office 606, Level 6, Tower 1
Al Fattan Currency House,
Dubai International Financial Centre,
P.O. Box 506646, Dubai
United Arab Emirates
Telephone: +971 4 441 6797
Facsimile: +971 4 441 6514
International General Insurance Co. Ltd.
Representative Office
Address:
Office # 1706 Twin Center, Tour Ouest. Angle Bd
Zerktouni et El Massira,
16ème étage 20100, Casablanca, Morocco
Land line: +212 (0) 522 958375
Fax line: +212 (0) 522 958376
Regulated by the Dubai Financial Services Authority
International General Insurance Company limited
Labuan Branch
North Star Underwriting Limited
Address:
15-18 Lime Street
London EC3M 7AN
England
Telephone: +44 (0) 20 7220 0100
Facsimile: +44 (0) 20 7220 0101
Address:
Level 1, LOT 7, Block F,
Saguking Commercial Building
Jalan Patau - Patau,
87000 Labuan,
Malaysia
Telephone: +6 (087) 410745
Facsimile: +6 (087) 419755
Regulated by the UK Financial Conduct Authority
Regulated by the Labuan Financial Services Authority
Kuala Lumpur Marketing Office:
Address:
29th Floor, Menara TA One
Jalan P Ramlee 50250
Kuala Lumpur, Malaysia
Telephone: +6 (032) 1661786
Facsimile: +6 (032) 171 1786