Misr Insurance Holding Company Annual Report 2013 - 2014
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Misr Insurance Holding Company Annual Report 2013 - 2014 Misr Insurance Holding Company 7 Talaat Harb St., Cairo - Egypt Telephone: (+202) 2399 3904 (+202) 2399 3959 Fax: (+202) 2395 9474 Website: www.misrholding.co An Integrated Financial Group Insurance-Investment-Real Estate Annual Report 2013 - 2014 Designed and Printed by Alahram Commercial Press-Kalyoub Egypt Contents • Board of Directors 4 • Corporate Governance 14 • Chairman's Message 6 • Risk Management 15 • Company Profile 7 • Social Responsibility 16 • Vision and Mission 9 • The Main Financial Indicators 17 • The Companies of the Group 10 • Financial Statements 21 • The Development and Restructuring Program 12 • Contact Information 25 • Board of Directors 28 • Insurance Services 35 • Chairman's Message 30 • The Main Financial Indicators 36 • Company Profile 32 • Financial Statements 41 • Vision and Mission 34 • Contact Information 57 • Board of Directors 60 • Insurance Services 66 • Chairman's Message 62 • The Main Financial Indicators 71 • Company Profile 63 • Financial Statements 75 • Vision and Mission 65 • Contact Information 79 • Board of Directors 82 • Projects Under Implementation & Future Projects 88 • Chairman's Message 84 • Khedivial Cairo 89 • Company Profile 85 • The Main Financial Indicators 91 • Vision and Mission 86 • Financial Statements 92 • Projects Currently Being Marketed 87 • Contact Information 95 • Board of Directors 98 • The Main Financial Indicators 102 • Chairman's Message 99 • Financial Statements 103 • Company Profile 100 • Contact Information 104 • Vision and Mission 101 Board of Directors Dr. Mohamed Youssef Chairman & C.E.O Mr. Basel Mohamed Al Hiny Executive Member for Financial and Investment Affairs Mr. Mohamed Zain Al Abdeen Non Executive Member Mr. Samir Reyad Fam Non Executive Member Dr. Mostafa Kamal Madboly Non Executive Member Mr. Eslam Abdel Azeem Azzam Non Executive Member Mr. Mahmoud Said Abdel Latif Non Executive Member Mr. Aly Ismail Aly Shaker Non Executive Member Dr. Ashraf Mohamed Ibrahim Non Executive Member Mr. Ahmed Samir Farag Non Executive Member Mr. Ahmed Abdel Ghaffar Khattab Staff Representative Due Thanks The Board of Directors of MIHC would like to seize this opportunity, on behalf of itself and its employees, to congratulate Dr. Adel Mounir Rabeh – former Executive Member for Operations Affairs on his new commanding post as Secretary General of Afro Asian Union effective May 1st , 2015. And to further extend deep gratitude and respect for all exerted efforts, activities and support presented to MIHC Group, wishing him all success in his new post . CHAIRMAN'S MESSAGE I am delighted to welcome you to MIHC’s 2014 Annual Report, and very pleased to report a year of outstanding performance building on our strong performances in both 2012 and 2013. Despite the unprecedented economic challenges and political changes Egypt has faced the last year, 2014 was another successful year for MIHC, sustaining our strong financial performance over the past years. We build our strategy in the previous years upon our extreme confidence in the strength of the Egyptian economy and the wisdom of Egyptian people, and this confidence increased when we all witnessed how the Egyptian people supported the great decision of our leader Abdel Fattah El-Sisi to start the new Suez Canal Project which we believe it will be a giant engine for the Egyptian economy for many years to come. Group performance The strong performance we have achieved in 2014 demonstrated the soundness of the strategy that we followed in recent years and was the result of a great deal of hard work across the group – focusing on our customers, growing the business and driving cost and capital efficiency. In non-life insurance, Misr Insurance Company (MIC) has achieved a net profit of EGP 651.3 million compared to EGP 550.7 million in FY 2013 with a growth ratio of 18.3 %. In the meanwhile MIC has succeeded to obtain a market share of 60%. In terms of Premium income, MIC achieved a Gross Written Premium of EGP 4628.5 million, compared to EGP 4340.6 million in 2013; an increase of 6.6 %, while its investment increased from EGP 12767.9 million in 2013 to reach EGP 13811.4 million this year., On the other hand, life insurance represented through Misr Life Insurance Company (MILC) has represented a remarkable performance this year; its net profit increased 258 % to reach EGP 253.8 million. the gross premium increased by 20.5% to reach EGP 2256.4 million compared to EGP 1873.3 million in the previous year and this rapid growth of the company gross premium demonstrate the quality of the company products and its ability to satisfy its client’s needs. In the meanwhile its investments increased by 11.6% to reach EGP 16598.8 million, compared to EGP 14873 million in 2013. In Real-estate, the strong performance of Misr Real Estate Asset (MREA) once again demonstrated the soundness of the strategic decision taken on 2007 to establish a separate, specialized entity to manage the real-state of the group. MREA’s activity revenues increased considerably this year by 49% to reach EGP 270.7 million versus EGP 181.7 million in the previous year. The net profit of (MREA) has increased by 33.5 % to reach EGP 112.6 million compared to EGP 84.3 million in FY 2013. Future plans We will continue our endeavor effort to regain the credit rating of our subsidiaries. We will maintain our focus and discipline in the implementation of our strategy, to profitably meet our customers’ changing needs. We will continue to drive our commitment not only to supporting our customers, but also to the well-being of our community. We will support our subsidiaries to contribute in the implementation of the new Suez Canal Project through funding and providing all the insurance covers the project will need. In the past three years we have succeeded in significantly strengthening our Group capital position, making us one of the best-capitalised insurers in the region and I am confident we could not achieve this without the support of the ministry of investment, and I would like to seize this opportunity to thank H.E. Mr. Ashraf Salman Minister of Investment, for his sincere support to MIHC’s plans. Looking at the performance of our group, our strategy, the quality of our people and above all the political and economic stability we enjoy now after the election of our Egyptian leader Abdel Fattah El-Sisi, I'm extremely confident about the future of our business and our capabilities to continue to deliver profitable growth and sustainable value for our shareholders. We have emerged from the most extraordinary economic and political circumstances Egypt faced in the past few years as one of the strongest insurance group in the region and I believe we could not do that without the immense contribution and dedicated efforts of our employees, in MIHC and subsidiaries, and I would like to take this opportunity to express my deepest thanks to every one of them. Dr. Mohamed Youssef Chairman, & C.E.O 6 Misr Insurance Holding Company Company Profile Historical Overview In the course of following – up and creating added values to the State - owned insurance companies; Misr Insurance Holding Company was incorporated under the Presidential Decree NO: 246 for the year 2006. Since then, Misr Insurance Holding Company became the new owner of the State - owned insurance companies and has borne the responsibility for structuring and repairing its subsidiaries. Misr Insurance Holding Company and its subsidiaries are subject to the public sector business companies law NO 203 for the year 1992 and its executive regulations. The purpose of Misr Insurance Holding Company is as follows: • Execute and follow – up the activities of the other insurance companies and the affiliates thereof; manage the activities related to the development of the same provided that such management may not result in practicing the insurance activity by itself. The company may in particular: • Establish shareholding companies to be established solely by the company or jointly with other public juristic public or private persons or individuals. • Purchase or sale of the shares of the shareholding companies or have a share in the capitals thereof. • Form and manage the company’s securities portfolio including the shares, bonds, financing securities along with any other financial tools or assets. • Perform all works required for reforming the financial structures, including owning some assets of the subsidiaries, reform the administration of the stumble affiliates in addition to maximizing the profitability of such companies and rationalization of cost. • Perform all actions that may help achieve all or some of its purposes. Annual Report 2013-2014 7 Company in Brief: Misr Insurance Holding Company was established in 2006 as a major element in an extended program for reforming the financial sector. Its subsidiaries activities are concentrated in three areas: Insurance, Investment, and Real Estate. EGP million Key Financial Highlights of the holding company 2012/2013 2013/2014 Paid-up capital 3,100 3,350 Shareholders Equity* 3,823 4,415 Total investments 4,293 4,717 Total assets 4,717 5,329 Net profit 339 618 * Includes Profit Before Distribution. EGP million Key Financial Highlights of consolidated Figures 2012/2013 2013/2014 Total investments 29,436 32,381 Total assets 32,005 35,892 Total technical provisions 22,560 23,837 Net profit of subsidiaries 710 1,020 8 Vision : We, in Misr Insurance Holding Co., aspire to fortify and preserve our position as a pioneer non-banking financial group in the Middle East andNorth-Africa (MENA) region. At present, we are striving to realize the maximum sustainable value added of all the activities performed by our companies. We are always looking ahead and using long-term planning in order to provide our clients with products and services of a quality exceeding their expectations.