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.

Mission : Knowledge and technology are the main pillars on which Misr Insurance Holding Co. depends on for presenting its message and realizing the desired development of the Egyptian insurance industry. Therefore, the Company’s principal objective is to focus on adopting new technologies and providing the state-of-the art innovations to all its employees through training and outstanding working environment. Based on this strategy, Misr Insurance Holding Co. can always be sure to continue presenting unique services to our clients in Egypt and MENA region. These services are provided by Misr Insurance Holding Co. through its subsidiaries, in theAnnual fields Report of 2013-2014 insurance, investment and real estate 9 management. The Companies of the Group

Today, MIHC holds shares in the following four operating companies. In a very short period of time it has successfully raised the financial and credit positions for all its subsidiaries, and adopted a range of forward- thinking strategies to improve their information systems, and create vibrant and efficient business environments to enhance both productivity and the welfare of employees.

Misr Insurance Company (MIC) Misr Insurance Company was founded in 1934 as a captive company for Misr Bank’s projects to be the leading insurance company. It became State Owned in 1960, was acquired by MIHC in June 2006, and subsequently merged with the Egyptian Reinsurance Company and the Al-Chark Insurance Company in 2007. In line with the reform strategy of separating life from non-life insurance, MIC has specialized in providing non-life insurance since 1/7/2010. This new entity became the leader of its field in the Middle East and North Africa (MENA) region in terms of assets and written premiums; able to deal with all the challenges such companies face, including fierce competition in both local and international markets. At the same time, as part of its risk management criterion, the company maintains a well established reinsurance sector involving longstanding relationships with top rated reinsurers. Misr Insurance Company’s prominent status has been developed through sound financial positioning and the outstanding professional skills of the staff at all levels. It targets significant growth through offering higher capacities, successfully expanding into new territories and utilizing its depth and range of expertise. It aims to win and retain its clients’ trust through offering a range of non-life products and services tailored to different clients’ needs. Today, it operates through eight regional branches, with 100 branch offices spread around Egypt. As part of its long-term strategy of expansion in the MENA region, MIC also has branch offices in Qatar and Kuwait. It has nearly 3250 employees and about 565 tied agents.

For more information on Misr Insurance Company, please visit the website: www.misrins.com.eg

10 Misr Life Insurance Company (MLIC) Founded in 1900 as the National Insurance Company of Egypt (NICE), MLIC was the ifrst insurance company to be established in the Arab world. It has always maintained a philosophy of achieving customer conifdence and satisfaction through its distinctive products and services.MLIC was acquired by MIHC in June 2006, and in line with the reform strategy of separating life from non-life insurance MLIC has been assigned to the Life portfolio of MIC, it now specializes in life, annuities, and health products. Since its acquisition, its paid-up capital has increased from EGP 350 million to EGP 750 million, which increased to one billion pounds after the transfer of the Life Insurance portfolio from Misr Insurance Co.In the light of its new specialized role, MLIC is constantly creating innovative strategies to target an ever greater number of clients. It provides its services through seven regional branches, 180 branch ofifces around the country and in excess of 2350 employees and 4850 tied agents For more information on Misr Life Insurance Company please visit the website: www.misrlife.com

Misr Real Estate Assets (MREA) With the beginning of the restructuring program, MREA was established in 2007 to manage the real estate assets of SOIs. with paid-up capital of EGP 500 million. It is wholly owned by MIHC. Most real estate of subsidiaries had been transferred to it. The company’s main objective is to develop the SOIs’ real estate portfolio by improving their management, marketing, and monetary conditions. The MREA is committed to conducting all kinds of real estate activities, including: managing, buying, selling, leasing, renting, acquisition, and maintenance. The company is also committed to preserving the historic buildings owned by it in coordination with the concerned authorities in this regard.

For more information on Misr Real Estate Assets please visit the website: www.misrrea.com

Misr Asset Management Company (MAM) MAM was established in May 2009; it is a joint stock company with a paid-in capital of EGP 11 million Misr Insurance Holding Company and its subsidiaries own MAM’s paid-up capital. The company provides investment advice to the group companies and their customers.

The company manages private equities, fixed incomes, as well as traded portfolios. It also manages the Misr Financial Investment Fund (MFIF) – a private equity fund with capital of EGP1 billion And being invested in infrastructure projects and facilities in Egypt.

For more information on Misr Asset Management please visit the website: www.misrholding.co

Annual Report 2013-2014 11 The State-owned Insurance Companies Development and Restructuring Program

Development Program and creating added values to the Subsidiaries: First: The challenges that accompanied the term of restructuring the affiliate insurance companies. Second: The achievements made throughout the last period. Third: The vision of Misr Insurance Holding Company for dealing with the requirements of the modern Egypt. First: The challenges that accompanied the term of restructuring the affiliate insurance companies. The restructuring period witnessed several challenges of which the most important were: The global financial crisis in 2008. The consequences of January Revolution 2011 to the economic activities. The restrictions imposed on banking insurance. Rising inflation. Increased competition in the market. Second: The achievements made throughout the last period. An integrated group was established including specialized entities under a strong financial coverage. Accordingly, the structure of the affiliate companies, after implementing the restructuring program, comprises Misr Insurance Company specialized in insuring properties and liabilities, Misr Insurance for Life Insurance specialized in insuring lives, Misr for Real Estate Management specialized in real estate management and investment and Misr for Financial Investments specialized in Financial Assets and Investment Management. Limiting the harmful competition between public insurance companies which were subscribing and practicing the same activity. Therefore, the system of service pricing was adjusted according to proper technical basis. The competitiveness of the subsidiaries was, locally and regionally, enhanced through supporting the capital base of the same as during the restructuring period: Misr Insurance’s capital was increased from LE 1650 million to LE 2250 million. Misr Insurance for Life Insurance’s capital was increased from LE 350 million to LE 750 million, then to LE one billion after the activity of life insurance was transferred from Misr Insurance to Misr Insurance for Life Insurance. Misr Insurance for Real Estate Management’s capital was increased from LE 389.8 million to LE 500 million. Commencing the activation of integration and specialization strategy between Misr for Real Estate Management and other real estate companies in the system where each company shall be specialized as (owner, developer, manager). Managing the real estate assets through professional and distinguished real estate experiences. Commencing the development of the properties of distinctive architectural value and setting a program for the maintenance of the old properties. Financing the lack of technical allocations for the portfolio of full insurance of properties especially for the compulsory vehicle insurance. Accordingly, the technical allocations contained in the financial statements are compatible with the actuary expertise report. The cash and in – kind advantages of all personnel of the companies were unified; a matter that resulted in increasing the average of employee’s income. Enhancing the efficiency of investment sectors in the subsidiaries through the technical support provided by Misr for Financial Investment Management and through the continuous coordination between the investment committees in the subsidiaries and the Misr Insurance Holding Company’s Supreme Committee for Investments. Enhancing the capabilities of Subsidiaries in terms of dealing with the competition spirit in the Market during the fiscal year 2013/2014: During the fiscal year 2013/2014 Misr Insurance Holding Company achieved the highest earnings and the highest profits ever.

12 The lack in technical allocations for the full insurance of individual portfolios was financed. Therefore, the technical allocations contained in the financial statements are compatible with the actuary expertise report. For the first time in several years, Misr for Life Insurance transferred profits to the state during the fiscal year 2012/2013. Moreover, the company significantly enhanced its profits during the fiscal year 2013/2014. Misr Real Estate Assets Management achieved its highest earnings ever during the fiscal year 2013/2014 with the amount of LE 271 million compared to the amount of LE 182 million during the fiscal year 2012/2013 with the growth rate of 49 %. The competitiveness of the insurance companies was significantly enhanced as the latest studies showed the decline of the growth gap between the public sector insurance and the private sector insurance as the average of such gap reached during the restructuring years the rate of 15 % and 6 % of the insurance activity of properties and liabilities and the activity of individuals’ insurance consequently while the gap declined after the restructuring period to become only 1 %; a matter confirming the enhancement of competitiveness of the subsidiary insurers. Positive Results & Indicators: The technical indicators of the property insurance improved to be equivalent to those of the private sector. The latest studies showed the decline of the gap in technical results measured through the rate of retained risk losses between the public sector insurance and the private sector insurance. The average of such gap in the restructuring years reached 47 % while such gap declined in the technical results during the post restructuring period to be only 14 %; an indicator confirming the improvement of the technical subscription of the insurance portfolio of properties and liabilities. Enhancing the competitiveness of the subsidiaries locally and regionally through supporting the capital base thereof. The average employee’s pay in the subsidiaries scored continuous increase; a matter achieving good life for all employees of the group. The employee’s productivity showed continuous increase throughout the recent years with the growth rate of 142 % during the fiscal year 2013/2014 compared to the fiscal year 2006/2007. Continuous enhancement of the position and leadership of the subsidiaries locally and regionally as shown in the order of Misr Insurance and Misr Life Insurance as both companies topped the most of financial and technical indicators locally. Regionally, it is notable that Misr Insurance is one of the largest insurers in the Middle East and North Africa in terms of capital, shareholders’ rights and net profits. Third: Misr Insurance Holding Company’s Vision in Dealing with the requirements of Modern Egypt: Increase the proceeds of the State’s investments. Provide support to the national income side by side to the private ector for maximizing the insurance sector’s participation in the total gross national production. Implement large real estate projects and maintaining the historical real estates. Continue the enhancement of the earning and profitability indicators of the subsidiaries. Develop the investment portfolio and spread it to all economic sectors and geographically to all governorates. Develop the human resources in all subsidiaries. Plans to contribute to the national economy in the future: Misr Insurance Holding Company expects, according to the internally prepared studies, significant potentials in a number of activities including: Reinsurance activity. Takaful Insurance Activity. Financial leasing activity. Health Care Management Activity. Real Estate Activity (Rod El Farag Land Project).

Annual Report 2013-2014 13 Corporate Governance

Our Company is keen to govern its subsidiaries according to the prevailing legal legislations, and within the framework of a clear organizational system and well-defined statutes and bylaws, given that it adopts the principles of transparency and frankness, and believes that such methodology will secure the sound performance of its activities and help the development of its business. The boards of directors form a sufficient number of committees to institute effective monitoring and management systems.

Board Committees: Board Committees have been delegated to provide the Board with all necessary information to carry out its duties efficiently through the following practices: • Monitoring the performance of the company over all activities, verifying the compliance of the company with the regulations and the laws. • Providing the Board with valuable recommendations about business strategies, objectives, and the proposed methods for improving the performance standards for each line of business.

Each committee is held regularly to fulfill its responsibility, and review policies, guidelines, procedures, and the developments of activities. The following are the most important committees: • Internal Audit Committee. • Top Management Committee. • Investment Committee.

Accounting Standards Each company complies with the IFRS, and subsidiaries comply with standards issued by the decree No. 243/2006 and its guidelines application to the insurance sector taking into account the Egyptian regulations by Act No. 10 of 1981 for Insurance Supervision and its amendments, which ensures the integrity and reliability of the financial statements according to the transparency principles.

The companies have internal and an external auditing systems. The Central Accounting Agency assumes the auditing of the financial statements of Misr Insurance Holding Co. and of its subsidiaries and prepares a report concerning the assessment of the companies’ performance. In other words, the Central Accounting Agency performs the role of an external auditor. The companies in which the private sector participates, may appoint an additional auditor from among the private sector practitioners, without prejudice to the competences granted to the Central Accounting Agency.

Anti-Corruption Measurements: - Combating corruption in all its forms, whether direct or indirect. - Interesting in ethics as a major component of the work system. - Applying the concepts of the accountability and the effective control methods to detect and prevent the corruption and to treat and overcome it timely. - Setting an anti-money laundering unit in the company to support it in resisting the corrupt clients, who use insurance as a mean of the money laundering.

14 Risk Management

Risk management is a central part of MIHC companies strategic management, It is the process whereby our companies methodically address the risks attaching to their activities with the goal of achieving sustained benefit and across the portfolios of all activities. The focus of our risk management is the identification and treatment of these risks. Its objective is to add maximum sustainable value to all the activities of our companies. It marshals the understanding of the potential upside and downside of all those factors which can affect the company and its subsidiaries. It increases the probability of success, and reduces both the probability of failure and the uncertainty of achieving the organization’s overall objectives.

Corporate risk management system: • Gathering and analyzing all important information about the company (internal and external environment) in order to recognize the risks that the company is exposed to . • Discovering , defining and describing the current and future risks in light of the available data and information, and classifying them and recognizing the relations between those risks. • Using the available technical means to measure and assess those risks through defining the levels of risks by loss exposure resulted from risks and their impact on the financial capabilities of the company . • Specifying the best approach to deal with those risks and controlling them, and setting the priorities, procedures and programs that should be taken . • Auditing and evaluating the risk management system regularly, and developing the policies and executive programs in the light of new challenges in the market through the continuous analysis of the internal and external environment. • Setting the necessary corrective procedures and executive programs which develop the company policies and programs to manage the risks . • Informing the internal audit committee of any defect to the risk management system, and setting the procedures that should be taken to correct this defect . • Preparing a quarterly report of risk management which is provided to the internal audit committee to be presented to the Board of Directors . • Coordinating between the related different departments in order to develop the risk management system in the companies and to be assured that the related departments are applying risk management recommendations. • Contributing to increase the awareness of risks which the company is exposed to, and the suitable procedures to overcome them .

Annual Report 2013-2014 15 Social Responsibility

MIHC and its subsidiaries are fully aware of the importance to transcend the limits of their economic role to the social work away from the profit and loss concern. So, MIHC became one of the first companies, that supported the principles of the UN international agreement to assist and activate the main values of the human rights, labor, environment and anti-corruption to develop the whole Egyptian society through its belief that : • More developing the society where the company operates, greater positive influence on its performance development and its ability to achieve its objectives, as the successful companies need a healthy environment and community. • contribution in the social responsibility is a long-term investment reflected through the company’s intangible revenue, which increases the community’s confidenceand respect of the company and its services. This can be considered as an indirect contacting and communicating channel between the company and the surrounding environment.

Responsibility to the environment: MIHC works through its defined social strategy and objectives for development, raising the whole society level, preserving its resources and protecting the environment.

The Responsibility towards the employees : MIHC believes that the principles of the social work should start from the inside through the employees as a part of the community. MIHC took the following arrangements : • Fairly dealing with all employees without discrimination. • Respecting the women’s role in the society and their right to work. Women in the company were recruited in the top management positions. • Setting workers’ syndicates and representing them in the board of directors. • Supporting the social activities. • Providing fair employees benefits. • Providing adequate training and support advanced education.

16 The Main Financial Indicators for year 2013/2014 Main indicators of Misr Insurance Holding Company (Stand Alone) in the financial year 2013/2014 as compared to the previous financial year 2012/2013

“EGP million” Actual Actual Growth Term 2012/2013 2013/2014 Rate% Total assets 4,717 5,329 12.9 % Shareholders’ fund (includes profit before distribution) 3,823 4,415 15.5 % Total revenue 456 655 43.6% Net profit 339 618 82.3% Shareholders’ dividends 272 482 77.2%

EG.P million EG.P million Shareholders' Equity 700 5000 655 4415 Shareholders equity amounted to EGP 4415600 million at 3823 4000 500 30/6/2014 against EGP 3823 million as456 at 30/6/2013 which represents 82.8% of Total Assets of EGP 4053290 million 3000 taking in consideration the suggested profit 30distribution.0 2000 200 1000 100

0 0 2013/2014 2012/2013 2013/2014 2012/2013

EG.P million EG.P million 700 5000 655 4415 EG.P million EG.P million 600 3823 7040000 5000 TOTAL REVENUE EG.P million 655 EG.P million 4415 500 600 456 35000 800 3823 total revenue in MIHC increased32381 with the amount of 655 3000 4000 29436 400 500 30000 456 700 million at 30/6/2014, against EGP 456 million at 30/6/2013 618 300 406020000 3000 with growth rate of 43.6% with an increase amount25000 of 199 200 30500 million EGP 20000 1000 2000 400 100 200 15000 339 300 1000 0 100 0 10000 2013/2014 2012/2013 2013/2014 2012/2013 200 0 0 5000 2013/2014 2012/2013 100 2013/2014 2012/2013 0 0 2013/2014 2012/2013 2013/2014 2012/2013

EG.P million EG.P million 35000 800 32381 EG.P million EG.P million Net profit 29436 700 30000 35000 800 MIHC net profits increased with the amount of EGP 618 32381618 29436 EG.P600 million EG.P25000 million 30000 700 million at 30/6/2014 against EGP 339 million40000 at 30/6/2013 30000500 618 600 35892 20000 25000 400 with growth rate of 82.3%. 32005 23837 339 500 15000 22560 20000 30000 300 400 10000 2000020150000 339 300 200005000 10100000 200 0 05000 2013/2014 2012/2013 2013/2014 2012/2013 10000 100 10000 0 0 2013/2014 2012/2013 2013/2014 2012/2013

0 0 2013/2014 2012/Annual2013 Report 2013-2014 2013/2014 2012/2013 17

EG.P million EG.P million 40000 30000 35892 EG.P million EG.P million 32005 23837 22560 40000 30000 EG.P30000 million 35892 EG.P million 32005 20000 23837 2500 10000 22560 2256 30000 1873 20000 8248 20000 2000 7427 8000 1000020000 100001500 6000 10000 1000 100004000 0 0 2013/2014 2012/2013 2013/2014 2012/2013 500 02000 0 2013/2014 2012/2013 2013/2014 2012/2013 0 0 2013/2014 2012/2013 2013/2014 2012/2013

EG.P million EG.P million 2500 10000 2256 EG.P million EG.P million 1873 8248 2000 80002500 10000 EG.Pmillion 2256 7427 EG.P million 1873 8248 1200 80002000 8000 1138 1500 6885 6000 7427 7000 1000 6214 1000 600040001500 6000 800 710 5000 500 20001000 4000 600 4000 3000500 2000 4000 0 2013/2014 2012/2013 2013/2014 2012/2013 2000 200 0 0 2013/2014 2012/2013 1000 2013/2014 2012/2013 0 0 2013/2014 2012/2013 2013/2014 2012/2013

EG.Pmillion EG.P million 1200 8000 1138 6885 EG.Pmillion EG.P million 7000 1000 6214 1200 8000 1138 6000 6885 7000 800 1000 710 5000 6214 6000 600 4000800 710 5000 3000 400 600 4000 2000 3000 200 400 1000 2000 0 0200 2013/2014 2012/2013 2013/2014 2012/2013 1000 0 0 2013/2014 2012/2013 2013/2014 2012/2013 Main indicators of the consolidated financial statements in the financial year 2013/2014 as compared to the financial year 2012/2013

“EGP million” EG.P million EG.P million EG.P million Actual Actual GrowthEG.P million Term 700 5000 700 2012/2013 6552013/2014 Rate5000 % 4415 655 4415 600 3823 Total investments 600 29,436 32,381 3823 10.0 % 4000 4000 500 Total technical reserves 500 456 5.7 % 456 22,560 23,837 400 3000 Total Assets 400 32,005 35,892 12.13000 % 300 2000 Total revenues 300 7,427 8,248 11.02000 % 200 200 Gross Premiums (Life) 1,873 2,256 20.4 % 1000 1010000 Gross Premiums (Non-Life) 100 4,341 4,629 6.6 % 0 0 0 2013/2014 2012/2013 0 2013/2014 2012/2013 The employee’s2013/2014 productivity2012/2013 (insurance 2013/2014 2012/2013 premiums divided by the number of 676 779 15.2 % employees) “ EGP thousand”

EG.P million EG.P million EG.P million EG.P million 35000 800 INVESTMENTS 35000 32381 800 32381 29436 29436 30000 700 • Total investments in MIHC and its30000 subsidiaries 700 618 618 600 25000600 amounted to EGP 32.4 billion in 2013/201425000 against 500 20000500 EGP 29.4 billion in 2012/2013 with 20000growth rate of 400 400 339 339 15000 10.0%. 15000 300 300 10000 10000 200 200 5000 100 5000 100 0 0 0 2013/2014 2012/2013 0 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013

EG.P million EG.P million EG.P million EG.P million 40000 30000 40000 35892 30000 Technical reserves35892 32005 23837 32005 23837 22560 22560 30000 • Total technical reserves in subsidiaries30000 of MIHC 20000 amounted to EGP 23.8 billion at 30/6/2014 against 20000 20000 EGP 22.6 billion as at 30/6/2013 with20000 growth rate 10000 of 5.7%. 10000 10000 10000

0 0 0 2013/2014 2012/2013 0 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013

18 EG.P million EG.P million EG.P million EG.P million 2500 10000 2500 2256 10000 2256 8248 8248 1873 1873 2000 7427 8000 2000 7427 8000 1500 6000 1500 6000

1000 4000 1000 4000

500 2000 500 2000

0 0 0 2013/2014 2012/2013 0 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013

EG.Pmillion EG.P million EG.Pmillion EG.P million 1200 8000 1200 8000 1138 6885 1138 6885 7000 10007000 1000 6214 6214 6000 6000 800 800 710 5000 710 5000 600 4000 600 4000 3000 4030000 400 2000 2000 200 200 1000 1000 0 0 0 2013/2014 2012/2013 0 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 EG.P million EG.P million 700 5000 655 4415 600 3823 4000 EG.P million EG.P million 500 700 456 5000 655 4415 400 3000 600 3823 4000 300 2000 500 456 EG.P million EG.P million 200 407000 30005000 655 4415 1000 100 306000 3823 20004000 0 0 500 456 200 2013/2014 2012/2013 2013/2014 2012/2013 10003000 104000

0300 02000 2013/2014 2012/2013 2013/2014 2012/2013 200 1000 100 EG.P million EG.P million 35000 800 0 32381 0 29436 2013/2014 2012/2013 2013/2014 2012/2013 30000 700 618 EG.P million EG.P million 600 25000 35000 800 32381 500 29436 20000 30000 700 400 618 339 15000600 EG.P25000 million EG.P million 300 10000 35000 508000 200 32381 20000 29436 5000400 30000 339 700 100 15000 618 0306000 0 1000025000 2013/2014 2012/2013 2013/2014 2012/2013 205000 500020000 104000 339 015000 0 2013/2014 2012/2013 2013/2014 2012/2013 300 10000 200 5000 EG.P100 million EG.P million 0 400000 30000 Total Assets 2013/2014 2012/2013 201335892/2014 2012/2013 32005 23837 22560 • Total Assets in MIHC and its subsidiariesEG.P million amounted EG.P30000 million 40000 30000 20000 to EGP 35.9 35892billion at 30/6/2014 against EGP 32.0 32005 23837 20000 22560 billion as at 30/6/2013 with growth 30000rate of 12.1%. EG.P million EG.P20000 million 10000 40000 1000030000 35892 20000 32005 23837 22560 30000 010000 0 2013 2014 2012 2013 2013 2014 2012 2013 10000 / / 20000 / /

20000 0 0 2013/2014 2012/2013 2013/2014 2012/2013 10000 10000 EG.P million EG.P million 2500 10000 TOTAL REVENUE 0 2256 0 2013/2014 2012/2013 2013/2014 20121873/2013 8248 2000 8000 • Total revenues in MIHC and EG.Pits millionsubsidiaries EG.P million 7427 2500 10000 increased with2256 the amount of EGP 8.2 billion in 1500 6000 1873 8248 2013/2014 against EGP 7.4 billion2000 in 2012/2013 8000 7427 1000 4000 with growth rate of 11.0%. EG.P million EG.P million 15002500 600010000 2256 500 2000 1873 8248 10002000 40008000 7427 0 0 2013/2014 2012/2013 2013/2014 2012/2013 5015000 20006000

01000 04000 2013/2014 2012/2013 2013/2014 2012/2013

500 EG.P2000million EG.P million 1200 8000 0 1138 0 6885 2013/2014 2012/2013 2013/2014 2012/2013 7000 1000 6214 EG.Pmillion EG.P million 6000 800 1200 710 8000 5000 Gross Premiums1138 6885 7000600 4000 1000 6214 • Gross premiums of life and non-life amounted 6000 EG.P million 3000 EG.P800million 400 to EGP 6.9 billion at 30/6/2014710 against EGP 6.2 1200 50008000 2000 1138 6885 200 billion as at 30/6/2013 with growth rate600 of 10.8%. 40007000 1000 1000 6214 3000 400 60000 0 800 2013/2014 2012/2013 2013/2014 2012/2013 710 20005000 200 600 10004000 0 03000 2013/2014 2012/2013 400 2013/2014 2012/2013 2000 200 1000 0 0 2013/2014 2012/2013 2013/2014 2012/2013

Annual Report 2013-2014 19 EG.P million EG.P million 700 5000 655 4415 600 3823 4000 500 456 400 3000

300 2000 200 1000 100

0 0 2013/2014 2012/2013 2013/2014 2012/2013

EG.P million EG.P million 35000 800 32381 29436 30000 700 618 600 25000 500 20000 400 15000 339 300 10000 200 5000 100 0 0 2013/2014 2012/2013 2013/2014 2012/2013

L.E.000’EG.P smillion EG.P million 779 The employee’s productivity 80400000 30000 35892 676 700 32005 23837 • The employee’s productivity (insurance 22560 60300000 premiums divided by the number of employees) 500 20000 increased by 15.2% in 2013/2014 as compared 40200000 to 2012/2013 despite the fierce market 300 10000 competition. 20100000 . 100 00 0 20132013/2014/2014 20122012//20132013 2013/2014 2012/2013

EG.P million EG.P million 2500 10000 2256 1873 8248 2000 7427 8000 Dividends profit of the subsidiaries in the financial year 2013/20141500 6000 1000 4000

“EGP50 0million” 2000 Actual Actual Term Growth0 Rate 0 2012/2013 20132013/2014/2014 2012/2013 2013/2014 2012/2013 Subsidiaries Dividends profit 710.0 1138.5 60.4 %

EG.Pmillion EG.P million Dividends profit 1200 8000 1138 6885 • The subsidiaries realized a 60.4% growth rate 7000 1000 6214 in 2013/2014, it amounted to EGP 1138 million 6000 800 at 30/6/2014 against EGP 710 million as at 710 5000 600 4000 30/6/2013 with increase EGP 428 million. 3000 400 2000 200 1000 0 0 2013/2014 2012/2013 2013/2014 2012/2013

20 Misr Insurance Holding Co. Financial Statements for the Fiscal Year Ended 30/6/2014

Balance Sheet (MIHC stand alone)

30/6/2014 30/6/2013 Term EGP EGP ASSETS Cash 4,825,924 3,110,897 Fixed Deposits with Banks 260,440,177 136,500,000 Investment in subsidiaries 3,756,000,000 3,506,000,000 Treasury Bills 219,808,811 314,589,326 Trading Securities 212,804,144 211,506,038 Lending 33,809,524 39,523,810 Non-Trading Securities 233,722,344 84,618,896 Debtors and Other Debit Balances 604,415,639 419,223,502 Fixed Assets (NET) 3,648,385 2,380,227 TOTAL ASSETS 5,329,474,948 4,717,452,696 LIABILITIES & SHAREHOLDERS' FUNDS Creditors and Other Credit Balances 201,706,945 471,766,780 Other Provisions - - Loans 713,010,000 699,940,000 TOTAL LIABILITIES 914,716,945 1,171,706,780 SHAREHOLDERS' FUNDS Paid-Up Capital 3,350,000,000 3,100,000,000 Reserves 446,740,946 446,740,946 Retained Profit - 2,636,975 Difference in Reevaluation of Securities 211,276 (995,030) Profit before Distribution 617,805,781 - TOTAL SHAREHOLDERS' FUNDS 4,414,758,003 3,545,745,916 TOTAL LIABILITES & SHAREHOLDERS' FUNDS 5,329,474,948 4,717,452,696

Annual Report 2013-2014 21 Statement of Income

30/6/2014 30/6/2013 Term EGP EGP Dividends of subsidiaries 571,562,346 388,598,775 Net Income from Investments 81,438,336 63,044,960 Other Income 2,331,738 4,632,517 Gain on sale of fixed assets 10,676 Total Income 655,332,420 456,286,928 Depreciation OF Fixed Assets 1,487,070 1,648,675 General & Administrative Expenses 18,654,682 14,751,180 Provision for doubtful debts 27,143 Other expenses (valuation differences of foreign currencies) 12,922,862 94,996,737 The burden of financing 4,515,832 5,939,355 Net profit (loss) before Tax 617,751,974 338,923,838 Tax due for the year ended 617,751,974 338,923,838 Deferred tax 53,807 131,223 Net profit for the Year 617,805,781 339,055,061

22 Consolidated Financial Statements for the fiscal year ending 30/6/2014

Consolidated Balance Sheet

30/6/2014 30/6/2013 Term EGP EGP ASSETS Cash 282,652,085 131,855,774 Investments Financial Investments Fixed Deposits with Banks 9,282,269,367 9,057,263,251 Treasury Bills 8,267,866,156 9,569,906,446 Securities for sale 9,314,925 13,406,517 Trading Securities 8,941,700,148 7,506,360,455 Lending 483,481,456 471,376,542 Non-Trading Securities 4,842,291,817 2,278,114,948 Total Financial Investments 31,826,923,869 28,896,428,159 Investment in real estate 553,694,024 539,370,429 Total Investments 32,380,617,893 29,435,798,588 Insurance Accounts Receivable (NET) 869,672,260 605,342,615 Insurance & Reinsurance Companies (NET) 503,017,003 476,373,556 Debtors and Other Debit Balances 1,642,073,758 1,153,371,142 Fixed Assets (NET) 213,543,983 201,855,879 TOTAL ASSETS 35,891,576,982 32,004,597,554 LIABILITIES & SHAREHOLDERS' FUNDS POLICYHOLDERS' FUNDS Life Technical reserves 15,154,259,848 14,177,779,871 Property & Liabilities Technical Reserves 8,683,000,923 8,382,351,566 Total Policyholders' Funds 23,837,260,771 22,560,131,437 Insurance and Reinsurance Companies 1,351,063,826 1,176,013,587 Creditors and Other Credit Balances 1,860,537,964 1,491,176,907 Other Provisions 359,806,671 277,672,351 Loans 713,010,000 699,940,000 TOTAL LIABILITIES 28,121,679,232 26,204,934,282 SHAREHOLDERS' FUNDS Paid-Up Capital 3,761,000,000 3,511,000,000 Reserves 1,296,583,203 1,205,298,505 Retained Profit _ 2,636,975 Difference in Reevaluation of Securities 2,094,508,766 741,672,731 Profit before Distribution 617,805,781 339,055,061 TOTAL SHAREHOLDERS' FUNDS 7,769,897,750 5,799,663,272 TOTAL LIABILITES & SHAREHOLDERS' FUNDS 35,891,576,982 32,004,597,554

Annual Report 2013-2014 23 Consolidated subsidiaries Statement of Income

30/6/2014 30/6/2013 Term EGP EGP

PROFIT (DEFICIT) OF INSURANCE ACTIVITY Profit (deficit) of life Insurance Activity 298,711,208 35,500,613 Profit (deficit) of Property & Liabilities Insurance Activity 715,166,467 343,501,716 Total 1,013,877,675 379,002,329 Income of Real estate activity 179,935,321 120,280,143 Net Income from Unallocated Investments 201,839,155 200,016,208 Other Income 153,338,636 482,852,533 Total Income 1,548,990,787 1,182,151,213 Depreciation OF Unallocated Fixed Assets 22,937,912 14,254,842 Decay Losses 195,498,447 235,466,867 Other Provisions 164,097,765 92,977,490 Other expenses 103,777,756 97,811,111 Net profit (loss) before extraordinary items 1,062,678,907 741,640,903 profit (loss) extraordinary items 115,777 )1,789,892( Net Profit Before Tax 1,062,794,684 739,851,011 Tax due for the year ended 42,661,749 30,179,585 Net profit for the Year 1,020,132,935 709,671,426

24 Subsidiaries Profit Distributing

30/6/2014 30/6/2013 Term EGP EGP Net profit 1,020,132,935 709,671,426 Retained Profit from previous year 118,335,253 300,000 Total dividends 1,138,468,188 709,971,426 Legal Reserve 83,926,913 55,715,083 Constant Reserve 192,856,146 130,548,051 Other Reserves - - Retained Profit 50,000 100,000 276,833,059 186,363,134 Distributing of Profit Misr insurance holding co. 571,562,346 388,598,775 Employees 142,322,005 65,119,973 Board of directors 2,783,051 1,818,000 Athletic activities 14,086,642 9,179,108 Minority rights 881,085 1,334,190 Retained Profit 130,000,000 mathematical reserves strengthening 57,558,246 Bonus shares - - 861,635,129 523,608,292 TOTAL 1,138,468,188 709,971,426

Contact Information 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

Annual Report 2013-2014 25 2014 2013

Annual Report Castle of Safety Board of Directors

Dr. Adel Ahmed Mousa Chairman & C.E.O. Mr. Mohamed Ismail Khalifa Executive Member for Insurance Affairs Dr. Ali Al-Shenawy Abdel Hadi Non Executive Member Dr. Ashraf Mahmoud Al-sharkawy Non Executive Member Mr. Ahmed Abdel Ghaffar Khattab Staff Representative Mr. Mohamed El Said Ibrahim Staff Representative Mr. Naser Abdel Hamid Mousa Staff Representative CHAIRMAN'S MESSAGE

Misr Insurance is distinguished all over its long history for more than 81 years with its ability of urgent responding to challenges and deal positively with opportunities, believing in its historical role as one of the most important organization in the Egyptian economy established by the pioneer economist Mohamed Taalaat Harb Pacha to support the independence and the national economy development . This historical establishment was a governing element in our performance and desire for development, believing that as we have the history, we also have distinguished abilities and vision for achieving objectives in the future. The effective planning is the actual standard of success; there is no distinction without a true wish of maintaining it and translate it into actual targets for the service of the Egyptians and their ambitions and hopes for better future. The Company’s vision believes that the true performance ratios should be measured according to the international performance standards. The client is on the top of priorities and citizen is a target of any development especially as we see what we have achieved is an indicator of the Egyptian economy success and a sincere effort of all participants. Our ambitious strategic plan believes that we work as A competitive insurance entity that lays on innovation and holds a distinguished position among the international insurance institutions offering a high quality products with fair competitive prices meet the needs of the clients and the international standards, achieving a set of important financial indicators during 2013/2014 as follows : -Total Premiums EGP 4.6 Billion with a growth rate of 7%, - Paid claims reached EGP 2.1 Billion, - Policyholders Funds EGP 8.7 Billion - Shareholders Funds EGP 4.6 Billion. - Total Investments EGP 13.8 Billion achieving an Investment Return exceeding EGP 1 Billion, - Net Profits of EGP 651 Million, Profit for Distribution for Employees EGP 71 Million Achieving the biggest Insurance Company Balance Sheet in Egypt, Middle East and North Africa with Total Assets of EGP 16 Billion . The Company also used its financial abilities in increasing the Paid-up Capital to EGP 2.250 Billion, objecting to increase the Paid –Up Capital to EGP 3.5 Billion during the next three years. The achieved success does not be related only to the Company, but also to the effort of all participants. The Client is on the top of its strategic goals as a base and target of its success.

30 The Company’s Teamwork is the cause of distinction. The Investment Ministry and EFSA and the Central Audit Organization and Misr Insurance Holding Company are participants in our achievements. Misr Company was not only a national egyptian insurance company, But history; reflects the thoughts and the ambitions of the National Economy leader Mohamed Talaat Harb And present of achievements realizing the challenges, and dealing with the actuality and initiative logic And future; that considers the history value.....and the present distinction ....and the responsibility of holding its name and the ambitions and hopes of the Egyptian.

Dr. Adel Mousa

(Chairman & C.E.O)

Annual Report 2013-2014 31 Company Profile Historical Overview Misr Insurance is the first Egyptian insurance company, it was established in 14th January 1934 by the National Economy’s pioneer Mohamed Talaat Harb as the first insurance company with Egyptian capital and Egyptian management to provide the insurance protection to the Egyptian projects and this has to assist the national independence –in that time –. So, Misr Insurance was the first nucleus for establishing the national insurance industry in Egypt, and it was the main supporter for launching the national economy. The Company sought to expand its business in various neighboring Arab countries mainly in Sudan, Lybia, and Syria. Also, the Company contributed in introducing this industry into many Arab sister countries through establishing agencies to it in some gulf countries in 1957 which converted to national companies in these countries after the domination of the trend towards nationalization in many Arab countries. So far Misr Insurance still credited with the introduction of the insurance industry in many Arab countries. The Company was converted to a state-owned company after the nationalization of economic entities in 1961 to the benefit of the Egyptian citizen. Then Elgomhoreyah Insurance Company and Eleddikhar Insurance Company have been merged within Misr Insurance company in 1965 as an appreciation to its leading role. The Company has been contributing through its huge investment portfolio in supporting and establishing a number of the important economic institutions which supporting the Egyptian economy. Since 15/7/2006 Misr Insurance has become a subsidiary company by the decree of the President of establishing Misr Insurance Holding Company, and all the four state-owned companies in Egypt (including Misr Insurance Company) have become subsidiary companies to Misr Insurance Holding Company, and be ruled accordingly to Law No. 203 for 1991 of the public sector companies and its implementing regulation. On 24/9/2007 AlChark Insurance Co. and Egypt Re. were merged (at their book value in 30/6/2007) within Misr Insurance Company . - As of 1/7/2010 the Company has been specialized in General Insurance in compliance with the Law No.118 for 2008 which obliges the separation between the Life assurance activity and General insurance activities in independent entities. As a result Misr insurance has become a huge insurance entity which specializes in general Insurance and be considered as one of the biggest insurance entities in the Middle East, and that contributed in increasing the company’s ability in serving the national economy further.

32 Company in Brief : Misr Insurance - is a subsidiary company to Misr Insurance Holding Company. - is considered as the leading Insurance Company in Egypt and the Arab World with an experience of more than 81 years in Property Insurance. - is the only Insurance Company in Egypt which has distinguished and professional team specializes in Aviation & Space Risks as Misr Insurance insures Egypt Air fleet and the Egyptian Satellites of Nilesat. - is the distinguished and first company in Egypt which provides Oil & Energy Insurance service for Oil projects over all Egypt. - Market’s share is 58 % of Non-Life insurance premiums. - has the biggest distribution network over all Egypt (about 100 office) . - has the biggest Paid-Up Capital for General insurance company in Egypt (i.e. 2.250 Billion EGP) - offers all Property & Liabilities Insurance programs that meet the needs of all the current clients and the potential customers. - has a large broad base of clients, and provides its services to the biggest institutions in Egypt. - has investments with amount of 13.8 Billion EGP which being invested in the various economic sectors in Egypt (Industry- Agriculture-Financial securities-Banks-Services ) - has a high qualified and professional team who offer the best insurance service ( 3250 Technical & Administrative employees , and 565 Insurance agents).

EGP Million

Key Financial Highlights 2012/2013 2013/2014

Paid up Capital 2,000 2,250

Gross Premiums 4,341 4,629

Total Claims Paid 2,059 2,133

Shareholders Equity* 3,475 4,620

Net Investments 12,768 13,811

Total Distributed Profit 551 651

*includes profit before distribution.

Annual Report 2013-2014 33 Vision : -Offering Best , Distinguished, Reliable And Highly Technical Insurance & Reinsurance Services, Meeting Our Customer Needs .

Mission : A competitive insurance entity based on the international standards.

34 Insurance Services : Misr Insurance sought to throughout its history to build-up a very special relationship with its customers through adopting a perfect style based on participation and action, so that its customers does not confront alone the risks that can be exposed to, as Misr Insurance always stands next to them as a partner that can be relied upon. Misr Insurance provides all types of general insurance coverage in different classes of Property & Liabilities such as Fire and Burglary, Cargo Marine, Inland Transportation, Marine Hull , Aviation , Engineering, Compulsory Motor, Comprehensive Motor, Oil & Gas, and other Miscellaneous Accidents such as Personal Accidents ,Travel Insurance and Fidelity, and others.

Types of Insurance policies: Home and Family Protection policy which provides for the family members a sum of money in cases of accidental death up to about 100 Thousand EGP , and insures home and its contents against Fire , Explosion ,Earthquakes , Burglary Risks and Theft attempts, and also the policy compensates the family of cost of rent for alternative accommodation in case of disqualification of home, and covers the liability against the homeowner and neighbors. Motor Policy which covers the physical loss for cars as a result of accident, collision, fire, theft and other additional risks . Professional Liability Policy which provides cover for all professional persons such as doctors, pharmacists, engineers, accountants, executive managers, and others. The policy provides protection against professional errors that may be occurred. Miscellaneous Accidents and Liabilities Policy which provides cover for various risks such as Fidelity, Money Transmission Risks, Glass Breaking, Livestock Mortalities, Buildings Liabilities after finishing the construction, and Legal Liabilities for others. Marine Cargo Policy which provides cover for cargo against risks during transporting the cargo by seas. Fire Policy for Industrial and Commercial and Tourism Projects which provides cover for properties against losses that may be occurred for physical damages as a result of fire or explosion or other additional risks as well as provide cover for the Loss of Revenue arising from these risks. Prsonal Accident and medical Treatment Policy which provides cover against accident and offers appropriate medical treatment through the highest level of network of doctors, hospitals, and laboratories. Engineering Policies which provide protection for big projects against physical damages during construction through Contractors All Risks Policy, and machines’ Contractors Policy. Also provide cover for machines through Erection All Risks, and Machinery Breakdown, besides Electronic Equipments Policy. Aviation and Space policies as Misr Insurance is the only Company which has high experience in the Aviation and Space Risks Insurance as it provides insurance cover for Egypt Air Fleet and the Egyptian Satellites (Nilesat) . Oil and Energy policies as Misr is the distinguished and first company in Egypt which provides Oil & Energy Insurance service for Oil projects over all Egypt. In fact Misr Insurance does not provide insurance policies to its customer as he needs only, but it provides the service as he dreams of, by which provide the complete protection for him & his family, and his properties. It is the integrated service in which the national history is accompanied with hard work, and the present with the real achievements, as Misr Insurance is the Company where : Work concepts are changed …...to put the client on the top of its priorities. Services concepts are changed …..from policies to services satisfy all needs. Marketing concepts …….to a client believes that he is a partner in success…..….gratitude to him …… and with him achievements will continue.

Annual Report 2013-2014 35 The Main Financial Indicators for year 2013/2014

PREMIUMS The Gross Premiums IncomeEG.P 000’amounteds to EGP EG.P 000’s 5000000 5000000 4.629 billion in 2013/2014 against EGP 4.341 4628543 4500000 4340682 4628543 billion in 2012/2013 with an increase4000000 of EGP 288 4000000 4340682 million. i.e. 6.6% 3500000 3535232 3701390 3402661 Also there is an increase in Net3000000 Retained Premiums 3000000 2500000 during the year under review with an amount of 2000000 2000000 EGP 378 million i.e. 19.3% 1500000as the Net Retained Premiums in 2013/2014 amounted1000000 to EGP 2.342 1000000 billion against EGP 1.964 billion500000 in 2012/2013. 0 0 2010 2011 The2012 following2013 table shows2014 Gross Premiums and 2013/2014 2012/2013 the Company’s Retention compared with the last year:

EG.P 000’s EGP 000’s 20134000000 2014 3500000 3153686 Gross Retention Gross Retention Premiums Amount3000000 Ratio Premiums %70.Amount3 Ratio 2144231 4,340,682 1,2500000963,772 45.2% 4,628,543 2,342,435 2012/201350.6% 2473206 2000000 2059254 2133491 The Development of1500000 the Premiums 1000000 %65.5 EGP 000’s 500000 2013/2014 Description 2009/20100 2010/2011 2011/2012 2012/2013 2013/2014 2010 2011 2012 2013 2014 Gross Premiums 3,402,661 3,538,232 3,701,390 4,340,682 4,628,543

EG.P 000’s 8683000 EG.P million 8382352 9000000 EG.P 000’s EG.P 000’s 8683 7749518 5000000 9000 5000000 8000000 8382 4628543 7886934 4500000 8000 4340682 7000000 4628543 7411755 4000000 7000 4000000 6000000 4340682 3500000 6000 5000000 3701390 3402661 3535232 3000000 5000 3000000 4000000 2500000 4000 3000000 2000000 3000 2000000 2000000 1500000 2000 1000000 1000000 1000 1000000 0 2010 2011 2012 2013 2014 500000 0 2013/20140 2012/2013 0 2010 2011 2012 2013 2014 2013/2014 2012/2013

EG.P million EG.P 000’s EG.P million 800 15000 4000000 13811 12767 651.2 700 3500000 12000 600 3153686 550.7 3000000 %70.3 500 2144231 2500000 9000 2012/2013 2473206 400 2000000 300 2059254 2133491 6000 1500000 200 1000000 3000 100 %65.5 500000 2013/2014 0 0 2013/2014 2012/2013 2013/20140 2012/2013 2010 2011 2012 2013 2014

EG.P 000’s 8683000 EG.P million 8382352 9000000 7749518 8683 9000 8000000 8382 7886934 8000 7000000 7411755 7000 6000000 6000 5000000 5000 4000000 4000 3000000 3000 2000000 2000 1000000 1000 0 2010 2011 2012 2013 2014 0 2013/2014 2012/2013

EG.P million EG.P million 800 15000 13811 12767 651.2 700 12000 550.7 600 500 9000 400 300 6000 200 3000 100 0 0 2013/2014 2012/2013 2013/2014 2012/2013 EG.P 000’s EG.P 000’s 5000000 5000000 4628543 4500000 4340682 4628543 4000000 4000000 4340682 3500000 3701390 3402661 3535232 3000000 3000000 2500000 2000000 2000000 1500000 1000000 1000000 500000 0 0 2010 2011 2012 2013 2014 2013/2014 2012/2013

Ratio of Net Claims to Gross Claims Claims Gross Claims Paid duringEG.P 000’ thes year under review amounted to EGP 40000002.133 billion against 3500000 EGP3153686 2.059 billion in 2012/2013 of which the 3000000 %70.3 Company’s Retention amounted to EGP 1.398 2144231 2500000 2012/2013 2473206 billion in 2013/2014 against EGP 1.449 billion in 2000000 the previous2059254 year, 2133491with a decrease of EGP 51 1500000 million. 1000000 %65.5 500000 2013/2014 The following table shows Claims Paid and the 0 2010 2011 Company’s2012 2013 Retention2014 compared with the last year:

EG.P 000’s 8683000 EG.P millionEGP 000’s 8382352 9000000 7749518 2013 8683 EG.P2014 000’s 9000 EG.P 000’s 8000000 8382 7886934Gross Claims Retention Gross Claims 5000000 Retention8000 5000000 7000000 4628543 7411755 Paid Amount Ratio Paid 4500000Amount 7000Ratio 4340682 6000000 4628543 2,059,254 1,448,543 70.3% 2,133,491 40000001,398,125 600065.5% 4000000 5000000 4340682 3500000 5000 40000003535232 3701390 3402661 3000000 4000 3000000 3000000 The Development of the Claims Paid 2500000 3000 2000000 2000000 2000 2000000 1000000 EGP 000’s 1500000 1000 0 1000000 1000000 2010 2011 2012 2013 2014 0 Description 2009/2010 2010/2011 2011/20122013/20142012/20135000002012/2013 2013/2014 0 0 Gross Claims 2,473,2062010 20112,144,2312012 3,153,6862013 2014 2,059,254 2,133,491 2013/2014 2012/2013

EG.P million EG.P million 800 EG.P 000’s 15000 13811 12767 651.2 700 4000000 12000 550.7 600 3500000 3153686 500 3000000 9000 %70.3 400 2144231 2500000 2012/2013 2473206300 6000 2000000 200 2059254 2133491 1500000 3000 100 1000000 0 0 %65.5 2013/2014 2012/2013 2013/2014 5000002012/2013 2013/2014 0 2010 2011 2012 2013 2014

37 Annual Report 2013-2014 EG.P 000’s 8683000 EG.P million 8382352 9000000 7749518 8683 9000 8000000 8382 7886934 8000 7000000 7411755 7000 6000000 6000 5000000 5000 4000000 4000 3000000 3000 2000000 2000 1000000 1000 0 2010 2011 2012 2013 2014 0 2013/2014 2012/2013

EG.P 000’s 4000000 3500000 3153686 3000000 %70.3 2144231 2500000 2012/2013 2473206 2000000 2059254 2133491 1500000 1000000 %65.5 500000 2013/2014 0 2010 2011 2012 2013 2014 EG.P 000’s EG.P 000’s 5000000 5000000 4628543 4500000 4340682 4628543 4000000 4000000 4340682 EG.P 000’s 3500000 Policyholders’ Funds8683000: 3535232 3701390 EG.P million 8382352 34026619000000 3000000 3000000 7749518 8683 9000 Technical Reserves amounted8000000 to EGP 8.683 2500000 8382 7886934 8000 billion in 2013/2014 against7000000 EGP 8.382 billion 2000000 2000000 7411755 7000 in 2012/2013 with an increase6000000 of EGP 301 1500000 1000000 6000 1000000 million i.e. 3.6 % 5000000 500000 5000 4000000 0 4000 0 201030000002011 2012 2013 2014 2013 2014 2012 2013 3000 / / 2000000 2000 1000000 1000 0 2010 2011 2012 2013 2014 0 2013/2014 2012/2013 EG.P 000’s 4000000 3500000 3153686 The Development of the Policyholder rights 3000000 %70.3 EG.P million2144231 2500000 EG.P million 2012/2013 2473206800 15000 EGP 000’s 13811 200000012767 651.2 700 2059254 2133491 Description 2009/2010 2010/2011 2011/2012 15000002012/2013 2013/201412000 550.7 600 1000000 %65.5 Policyholder rights 7,411,755500 7,749,518 7,886,934 8,382,352 90008,683,000 500000 2013/2014 400 0 6000 2010 300 2011 2012 2013 2014 200 3000 100 0 0 2013/2014 2012/2013 2013/2014 2012/2013

EG.P million EG.P million 800 15000 13811 12767 651.2 700 12000 600 38 550.7 500 9000 400 300 6000 200 3000 100 0 0 2013/2014 2012/2013 2013/2014 2012/2013 EG.P 000’s EG.P 000’s 5000000 5000000 4628543 4500000 4340682 4628543 4000000 4000000 4340682 3500000 3701390 3402661 3535232 3000000 3000000 2500000 2000000 2000000 1500000 1000000 1000000 500000 0 0 2010 2011 2012 2013 2014 2013/2014 2012/2013

EG.P 000’s 4000000 3500000 3153686 3000000 %70.3 2144231 2500000 2012/2013 2473206 2000000 2059254 2133491 1500000 1000000 %65.5 500000 2013/2014 0 2010 2011 2012 2013 2014

EG.P million EG.P million Investments 800 15000 13811 12767 Net651.2 Investments as at 30/6/2014700 amounted 12000 to EGP 13.811 billion550.7 against600 EGP 12.768 billion as at 30/6/2013 with 50an0 increase of 9000 EGP 1.043 billion. 400 300 6000 200 3000 100 0 0 2013/2014 2012/2013 2013/2014 2012/2013

The following table shows the breakdown of net investments compared with the last year:

EGP 000’s Description 2012/2013 2013/2014 Fixed Deposits at Banks 4,875,773 4,954,274 Treasury Bills 2,680,809 445,179 Securities Available for Sale 3,601,943 4,416,627 Loans 10,197 5,290 Non-Trading Securities 1,599,130 3,990,025 Total Investments 12,767,852 13,811,397

The Net Return of Investment in 2013/2014 amounted to EGP 1.017 billion against EGP 1.014 billion last year. The Investment return rate in 2013/2014 is 7.7% against 8% last year.

In this regard we would like to point out that our contribution in companies cover all economy sectors on the national level, and the most important are:

Baking Sector Finance and investment Sector Insurance Sector Tourism Sector Housing Sector for Tourism and Administration Industry Sector Administration and Services Sector Medical and Therapeutic Sector Food Sector Agriculture Sector

Annual Report 2013-2014 39 EG.P 000’s EG.P 000’s 5000000 5000000 4628543 4500000 4340682 4628543 4000000 4000000 4340682 3500000 3701390 3402661 3535232 3000000 3000000 2500000 2000000 2000000 1500000 1000000 1000000 500000 Profit of Insurance Activities 0 0 2010 2011 2012 2013 2014 2013/2014 2012/2013 Insurance Activity Surplus in 2013/2014 amounted to EGP 715.2 million against EGP 343.5 million in 2012/2013. The following table shows the Profit (Loss) of Insurance Activity for each branch compared with the last year:

EGP 000’s EG.P 000’s Branch 2012/2013 2013/2014 4000000 3500000 Fire 56,8483153686 98,124 3000000 %70.3 Marine Cargo 79,633 88,416 2144231 2500000 2012/2013 2473206 Inland Transport 19,700 37,821 2000000 2059254 2133491 Marine Hull 27,091 29,307 1500000 1000000 Aviation 46,477 49,700 %65.5 500000 2013/2014 Accident 87,122 119,082 0 2010 2011 2012 2013 2014 Motor (Compulsory) 16,499 211,076 Motor (Comprehensive) (44,722) 36,729 Engineering 44,534 91,015

EG.P 000’s Oil & Gas 92,196 36,6218683000 EG.P million 8382352 9000000 7749518 8683 9000 Medical (81,875) (82,724) 8000000 8382 7886934 8000 7000000 Total 7411755 343,502 715,166 7000 6000000 6000 5000000 Shareholders’ Equity 5000 4000000 Shareholders’ Equity amounted to EGP 4.620 billion at 30/6/2014 which represents 28.8 % of Total 4000 3000000 3000 Assets of EGP 15.992 billion taking in consideration the suggested profit distribution. 2000000 2000 The following table shows the development of the paid-up capital, reserves, and Total Assets:1000000 1000 0 EGP million 2010 2011 2012 2013 2014 0 Difference in Shareholders’ Paid –Up Non-Technical Shareholders’ 2013/2014 2012/2013 Year Reevaluation Total Assets Equity to Capital Reserves Equity of Securities Assets 2013/2014 2,250 355 1,194 4,620 15,992 28.8%

EG.P million EG.P million Net Profit 800 15000 13811 12767 The companys net profits for the year 2013/2014 651.2 700 12000 amounted to EGP 651.2 million compared to EGP 550.7 600 550.7 million in the financial year 2012/2013 with 500 9000 growth ratio of 18.2%. 400 300 6000 200 3000 100 0 0 2013/2014 2012/2013 2013/2014 2012/2013

40 Misr Inserance Co. Financial Statements for the Fiscal year Ended 30/6/2014 Balance Sheet 30/6/2014 30/6/2013 Term EGP EGP ASSETS Cash 255,448,820 107,604,965 Investments Financial Investments - - Fixed Deposits with Banks 4,954,274,061 4,875,772,749 Treasury Bills 445,179,384 2,680,809,321 Trading Security - - Securities for Sale 4,416,627,111 3,601,943,048 Investment Certificates Loans 5,290,747 10,196,962 Non-Trading Securities 3,990,025,295 1,599,130,162 Total Financial Investments 13,811,396,598 12,767,852,242 Insurance Account Receivable (Net) 796,791,184 548,479,843 Insurance & Reinsurance Companies (Net) 463,674,413 452,426,569 Debtors and Other Debit Balances 497,248,412 290,194,810 Fixed Assets (Net) 168,065,288 168,747,489 TOTAL ASSETS 15,992,624,715 14,335,305,918 LIABILITIES & SHAREHOLDERS' FUNDS POLICYHOLDERS› FUNDS Property & Liabilities Technical Reserves 8,683,000,923 8,382,351,566 Total Policyholders› Funds 8,683,000,923 8,382,351,566 Insurance and Reinsurance Companies 1,297,824,890 1,143,755,332 Creditors and Other Credit Balances 1,070,932,328 1,094,516,955 Other Provisions 320,569,571 239,274,532 TOTAL LIABILITIES 11,372,327,712 10,859,898,385 SHAREHOLDERS' FUNDS Paid-Up Capital 2,250,000,000 2,000,000,000 Reserves 354,635,610 466,859,718 Profit before Distribution 651,290,100 550,722,573 Retained profit from previous year 170,169,711 - Difference in reevaluation of security 1,194,201,582 457,825,242 TOTAL SHAREHOLDERS› FUNDS 4,620,297,003 3,475,407,533 TOTAL LIABILITES & SHAREHOLDERS› FUNDS 15,992,624,715 14,335,305,918

Annual Report 2013-2014 41 Statement of Income

30/6/2014 30/6/2013 Term EGP EGP Profit (Deficit) Of Insurance Activity 715,166,467 343,501,716 Net Income from Unallotted Investments 153,355,627 142,984,673 Other Income 85,213,839 341,630,680 Total Income 953,735,933 828,117,069 Depreciation Of Unallotted Fixed Assets 19,917,392 12,465,056 Impairment Losses 147,539,087 179,432,026 Other Provisions 132,000,000 83,407,522 Other Expenses 3,105,131 300,000 Net Profit ( Loss ) before taxes 651,174,323 552,512,465 Income (Expenses) of Deferred Taxes 115,777 (1,789,892) Net Profit for the year( after taxes ) 651,290,100 550,722,573

42 Consolidated Revenues & Expenses statement

Non-Life Total 30/6/2014 30/6/2013 Term EGP EGP Income Direct Premiums 4,018,491,426 3,817,661,340 Inward Reinsurance Premiums 610,051,709 523,020,999 Gross Premiums 4,628,543,135 4,340,682,339 Less Reinsurance 2,286,108,488 2,376,910,426 Net Premiums 2,342,434,647 1,963,771,913 Change in the value of Unexpired Risks At the beginning of the year 1,275,704,163 1,273,252,301 At the end of the year 1,407,645,404 1,268,319,436 Earned Premiums 2,210,493,406 1,968,704,778 Outward Reinsurance Commissions 396,602,388 382,550,213 Other Income 42,770,630 21,586,066 Total Income 2,649,866,424 2,372,841,057 Outgo Direct Paid Claims 1,808,294,560 1,840,769,528 Inward Reinsurance Claims 325,196,636 218,484,747 Gross Claims Paid 2,133,491,196 2,059,254,275 Less Reinsurance 735,366,009 610,711,664 Net Claims 1,398,125,187 1,448,542,611 Change In The Value of O/S Claims Reserve At the end of the year 5,283,739,078 5,388,411,153 At the beginning of the year 5,409,154,052 5,268,726,012 Incurred Losses 1,272,710,213 1,568,227,752 Change In The Value of L/R Fluctuation Reserve At the end of the year 1,991,616,441 1,725,620,977 At the beginning of the year 1,725,620,977 1,509,877,310 Direct Commissions 90,190,025 70,664,355 Inward Reinsurance Commissions 140,555,972 117,742,133 Acquisition Costs 532,464,595 498,088,365 Commissions And Acquisition Costs 763,210,592 686,494,853 General & Administrative Expenses 485,174,413 417,056,442 Other Provisions 11,646,424 12,363,305 Total Outgo 2,798,737,106 2,899,886,019 Profit (Loss) Of Underwriting (148,870,682) (527,044,962) Net Income From Allotted Investments 864,037,149 870,546,678 Profit (Loss) Of Non-Life Insurance Activities 715,166,467 343,501,716

Annual Report 2013-2014 43 Fire :

30/6/2014 30/6/2013 Term EGP EGP Income Direct Premiums 709,322,727 575,749,087 Inward Reinsurance Premiums 137,376,138 73,317,201 Gross Premiums 846,698,865 649,066,288 Less Reinsurance 536,359,104 486,203,852 Net Premiums 310,339,761 162,862,436 Change in the value of Unexpired Risks At the beginning of the year 138,085,299 113,139,337 At the end of the year 195,603,826 137,560,931 Earned Premiums 252,821,234 138,440,842 Outward Reinsurance Commissions 132,409,407 127,145,024 Other Income 1,216,619 1,196,294 Total Income 386,447,260 266,782,160 Outgo Direct Paid Claims 198,471,240 179,784,667 Inward Reinsurance Claims 61,485,848 51,769,355 Gross Claims Paid 259,957,088 231,554,022 Less Reinsurance 175,040,317 152,327,783 Net Claims 84,916,771 79,226,239 Change In The Value of O/S Claims Reserve At the end of the year 354,213,045 321,624,423 At the beginning of the year 324,210,905 347,189,828 Incurred Losses 114,918,911 53,660,834 Change In The Value of L/R Fluctuation Reserve At the end of the year 354,213,045 321,624,423 At the beginning of the year 321,624,423 272,801,212 Direct Commissions 21,761,460 17,221,801 Inward Reinsurance Commissions 36,232,476 21,099,073 Acquisition Costs 107,604,913 96,904,981 Commissions And Acquisition Costs 165,598,849 135,225,855 General & Administrative Expenses 73,247,839 57,207,083 Other Provisions 3,468,489 Total Outgo 386,354,221 298,385,472 Profit (Loss) Of Underwriting 93,039 (31,603,312) Net Income From Allotted Investments 98,030,767 88,451,152 Profit (Loss) Of Fire Insurance Activities 98,123,806 56,847,840

44 Marine Cargo :

30/6/2014 30/6/2013 Term EGP EGP Income Direct Premiums 167,983,588 164,903,296 Inward Reinsurance Premiums 37,881,784 29,086,241 Gross Premiums 205,865,372 193,989,537 Less Reinsurance 77,551,508 79,360,016 Net Premiums 128,313,864 114,629,521 Change in the value of Unexpired Risks At the beginning of the year 46,107,069 41,630,642 At the end of the year 57,362,218 45,474,644 Earned Premiums 117,058,715 110,785,519 Outward Reinsurance Commissions 24,450,612 22,954,481 Other Income 646,772 662,382 Total Income 142,156,099 134,402,382 Outgo Direct Paid Claims 85,159,770 23,948,124 Inward Reinsurance Claims 18,882,742 21,581,450 Gross Claims Paid 104,042,512 45,529,574 Less Reinsurance 61,072,027 23,401,567 Net Claims 42,970,485 22,128,007 Change In The Value of O/S Claims Reserve At the end of the year 165,446,692 177,029,502 At the beginning of the year 180,302,967 167,116,511 Incurred Losses 28,114,210 32,040,998 Change In The Value of L/R Fluctuation Reserve At the end of the year 177,029,502 177,029,502 At the beginning of the year 177,029,502 172,507,884 Direct Commissions 3,714,599 3,335,312 Inward Reinsurance Commissions 12,470,530 9,534,749 Acquisition Costs 23,530,619 22,406,730 Commissions And Acquisition Costs 39,715,748 35,276,791 General & Administrative Expenses 27,204,235 25,136,182 Other Provisions - Total Outgo 95,034,193 96,975,589 Profit (Loss) Of Underwriting 47,121,906 37,426,793 Net Income From Allotted Investments 41,293,745 42,206,165 Profit (Loss) Of Marine Cargo Insurance Activities 88,415,651 79,632,958

Annual Report 2013-2014 45 Inland Transport :

30/6/2014 30/6/2013 Term EGP EGP Income Direct Premiums 56,104,804 44,619,717 Inward Reinsurance Premiums - - Gross Premiums 56,104,804 44,619,717 Less Reinsurance - - Net Premiums 56,104,804 44,619,717 Change in the value of Unexpired Risks At the beginning of the year 18,416,544 16,150,991 At the end of the year 23,225,342 18,357,790 Earned Premiums 51,296,006 42,412,918 Outward Reinsurance Commissions - - Other Income 126,789 114,667 Total Income 51,422,795 42,527,585 Outgo Direct Paid Claims 9,190,544 16,396,348 Inward Reinsurance Claims - - Gross Claims Paid 9,190,544 16,396,348 Less Reinsurance - 4,017,645 Net Claims 9,190,544 12,378,703 Change In The Value of O/S Claims Reserve At the end of the year 60,412,775 60,596,225 At the beginning of the year 61,552,252 67,047,812 Incurred Losses 8,051,067 5,927,116 Change In The Value of L/R Fluctuation Reserve At the end of the year 60,412,775 57,587,361 At the beginning of the year 57,587,361 41,887,229 Direct Commissions 1,667,814 1,358,065 Inward Reinsurance Commissions - - Acquisition Costs 8,583,006 7,137,034 Commissions And Acquisition Costs 10,250,820 8,495,099 General & Administrative Expenses 6,238,446 6,128,323 Other Provisions - - Total Outgo 27,365,747 36,250,670 Profit (Loss) Of Underwriting 24,057,048 6,276,915 Net Income From Allotted Investments 13,764,121 13,422,701 Profit (Loss) Of Inland Transport Insurance Activities 37,821,169 19,699,616

46 Marine Hull :

30/6/2014 30/6/2013 Term EGP EGP Income Direct Premiums 125,235,078 118,436,494 Inward Reinsurance Premiums 13,548,373 9,238,543 Gross Premiums 138,783,451 127,675,037 Less Reinsurance 107,313,454 103,593,887 Net Premiums 31,469,997 24,081,150 Change in the value of Unexpired Risks At the beginning of the year 11,350,431 11,833,411 At the end of the year 14,429,525 11,258,908 Earned Premiums 28,390,903 24,655,653 Outward Reinsurance Commissions 24,435,285 23,557,818 Other Income 561,982 655,766 Total Income 53,388,170 48,869,237 Outgo Direct Paid Claims 83,061,120 21,201,403 Inward Reinsurance Claims 10,611,134 9,398,145 Gross Claims Paid 93,672,254 30,599,548 Less Reinsurance 75,990,897 19,693,569 Net Claims 17,681,357 10,905,979 Change In The Value of O/S Claims Reserve At the end of the year 115,245,386 121,362,881 At the beginning of the year 122,115,460 121,069,677 Incurred Losses 10,811,283 11,199,183 Change In The Value of L/R Fluctuation Reserve At the end of the year 85,138,941 77,021,982 At the beginning of the year 77,021,982 69,297,366 Direct Commissions 1,097,822 1,142,427 Inward Reinsurance Commissions 2,740,193 2,107,720 Acquisition Costs 11,690,069 11,647,541 Commissions And Acquisition Costs 15,528,084 14,897,688 General & Administrative Expenses 13,164,314 12,808,073 Other Provisions 1,767,637 907,447 Total Outgo 49,388,277 47,537,007 Profit (Loss) Of Underwriting 3,999,893 1,332,230 Net Income From Allotted Investments 25,307,348 25,759,046 Profit (Loss) Of Marine Hull Insurance Activities 29,307,241 27,091,276

Annual Report 2013-2014 47 Aviation :

30/6/2014 30/6/2013 Term EGP EGP Income Direct Premiums 137,155,712 180,954,583 Inward Reinsurance Premiums 47,558,226 72,389,027 Gross Premiums 184,713,938 253,343,610 Less Reinsurance 132,571,203 168,090,060 Net Premiums 52,142,735 85,253,550 Change in the value of Unexpired Risks At the beginning of the year 50,655,269 38,288,747 At the end of the year 32,592,542 49,988,561 Earned Premiums 70,205,462 73,553,736 Outward Reinsurance Commissions 7,768,867 9,866,912 Other Income 55,123 110,641 Total Income 78,029,452 83,531,289 Outgo Direct Paid Claims 94,403,660 18,361,558 Inward Reinsurance Claims 41,212,470 58,121,528 Gross Claims Paid 135,616,130 76,483,086 Less Reinsurance 92,249,910 31,851,392 Net Claims 43,366,220 44,631,694 Change In The Value of O/S Claims Reserve At the end of the year 161,849,298 166,708,649 At the beginning of the year 169,493,236 172,203,416 Incurred Losses 35,722,282 39,136,927 Change In The Value of L/R Fluctuation Reserve At the end of the year 196,636,842 196,636,842 At the beginning of the year 196,636,842 196,636,842 Direct Commissions - - Inward Reinsurance Commissions 7,243,184 11,580,887 Acquisition Costs 8,947,627 12,269,979 Commissions And Acquisition Costs 16,190,811 23,850,866 General & Administrative Expenses 15,748,236 16,315,075 Other Provisions - - Total Outgo 67,661,329 79,302,868 Profit (Loss) Of Underwriting 10,368,123 4,228,421 Net Income From Allotted Investments 39,332,056 42,248,841 Profit (Loss) Of Aviation Insurance Activities 49,700,179 46,477,262

48 Accident :

30/6/2014 30/6/2013 Term EGP EGP Income Direct Premiums 275,177,199 193,105,438 Inward Reinsurance Premiums 33,100,017 32,342,185 Gross Premiums 308,277,216 225,447,623 Less Reinsurance 50,422,687 39,969,287 Net Premiums 257,854,529 185,478,336 Change in the value of Unexpired Risks At the beginning of the year 209,779,160 189,629,936 At the end of the year 219,064,479 209,242,278 Earned Premiums 248,569,210 165,865,994 Outward Reinsurance Commissions 7,038,825 6,251,350 Other Income 24,849,659 5,485,729 Total Income 280,457,694 177,603,073 Outgo Direct Paid Claims 49,942,588 34,539,388 Inward Reinsurance Claims 22,007,864 10,587,825 Gross Claims Paid 71,950,452 45,127,213 Less Reinsurance 2,390,213 5,530,569 Net Claims 69,560,239 39,596,644 Change In The Value of O/S Claims Reserve At the end of the year 527,263,079 553,710,811 At the beginning of the year 555,089,858 515,909,045 Incurred Losses 41,733,460 77,398,410 Change In The Value of L/R Fluctuation Reserve At the end of the year 457,743,462 340,479,337 At the beginning of the year 340,479,337 302,114,533 Direct Commissions 13,862,874 9,034,010 Inward Reinsurance Commissions 6,922,812 5,592,072 Acquisition Costs 55,073,434 40,208,051 Commissions And Acquisition Costs 75,859,120 54,834,133 General & Administrative Expenses 42,144,987 32,471,497 Other Provisions 937,356 - Total Outgo 277,939,048 203,068,844 Profit (Loss) Of Underwriting 2,518,646 (25,465,771) Net Income From Allotted Investments 116,563,381 112,587,504 Profit (Loss) Of Accident Insurance Activities 119,082,027 87,121,733

Annual Report 2013-2014 49 Motor Compulsory :

30/6/2014 30/6/2013 Term EGP EGP Income Direct Premiums 228,152,591 235,865,446 Inward Reinsurance Premiums - - Gross Premiums 228,152,591 235,865,446 Less Reinsurance 104,032,815 52,148,792 Net Premiums 124,119,776 183,716,654 Change in the value of Unexpired Risks At the beginning of the year 141,262,776 193,633,777 At the end of the year 116,567,184 139,520,559 Earned Premiums 148,815,368 237,829,872 Outward Reinsurance Commissions 31,521,943 - Other Income 6,921,366 7,361,515 Total Income 187,258,677 245,191,387 Outgo Direct Paid Claims 410,530,519 537,469,271 Inward Reinsurance Claims 470,685 655,067 Gross Claims Paid 411,001,204 538,124,338 Less Reinsurance 8,549,647 160,000 Net Claims 402,451,557 537,964,338 Change In The Value of O/S Claims Reserve At the end of the year 2,968,506,754 3,136,591,329 At the beginning of the year 3,139,519,286 3,145,736,070 Incurred Losses 231,439,025 528819597 Change In The Value of L/R Fluctuation Reserve At the end of the year 85,417,597 85,417,597 At the beginning of the year 85,417,597 85,417,597 Direct Commissions 794,086 629,076 Inward Reinsurance Commissions - - Acquisition Costs 7,027,882 5,033,568 Commissions And Acquisition Costs 7,821,968 5,662,644 General & Administrative Expenses 54,877,138 42,085,625 Other Provisions - 417,500 Total Outgo 294,138,131 576,985,366 Profit (Loss) Of Underwriting (106,879,454) (331,793,979) Net Income From Allotted Investments 317,955,434 348,292,712 Profit (Loss) Of Motor Compulsory Insurance Activities 211,075,980 16,498,733

50 Motor Comprehensive :

30/6/2014 30/6/2013 Term EGP EGP Income Direct Premiums 731,899,739 661,096,860 Inward Reinsurance Premiums 4,434,979 2,732,642 Gross Premiums 736,334,718 663829502 Less Reinsurance - - Net Premiums 736,334,718 663,829,502 Change in the value of Unexpired Risks At the beginning of the year 350,956,096 366,657,375 At the end of the year 382,572,448 350,873,954 Earned Premiums 704,718,366 679,612,923 Outward Reinsurance Commissions - - Other Income 2,153,270 2,166,976 Total Income 706,871,636 681,779,899 Outgo Direct Paid Claims 412,658,669 440,128,185 Inward Reinsurance Claims 3,355,334 1,348,903 Gross Claims Paid 416,014,003 441,477,088 Less Reinsurance - 128,915 Net Claims 416,014,003 441348173 Change In The Value of O/S Claims Reserve At the end of the year 330,394,850 404,765,517 At the beginning of the year 405,050,408 375,098,228 Incurred Losses 341,358,445 471,015,462 Change In The Value of L/R Fluctuation Reserve At the end of the year 108,822,130 68,457,793 At the beginning of the year 68,457,793 68,457,793 Direct Commissions 38,412,572 32,545,845 Inward Reinsurance Commissions 254,002 151,351 Acquisition Costs 196,014,591 185,816,266 Commissions And Acquisition Costs 234,681,165 218,513,462 General & Administrative Expenses 133,986,581 114,522,473 Other Provisions - 6,481,459 Total Outgo 750,390,528 810,532,856 Profit (Loss) Of Underwriting (43,518,892) (128,752,957) Net Income From Allotted Investments 80,247,423 84,031,170 Profit (Loss) Of Motor comprehensive Insurance Activities 36,728,531 (44,721,787)

Annual Report 2013-2014 51 Engineering :

30/6/2014 30/6/2013 Term EGP EGP Income Direct Premiums 449,314,333 517,458,695 Inward Reinsurance Premiums 71,103,438 50,632,285 Gross Premiums 520,417,771 568,090,980 Less Reinsurance 406,299,638 481,172,318 Net Premiums 114,118,133 86,918,662 Change in the value of Unexpired Risks At the beginning of the year 115,072,087 98,493,705 At the end of the year 103,355,518 114,619,702 Earned Premiums 125,834,702 70,792,665 Outward Reinsurance Commissions 79,587,529 60,696,290 Other Income 531,994 330,573 Total Income 205,954,225 131,819,528 Outgo Direct Paid Claims 103,981,573 76,115,058 Inward Reinsurance Claims 23,274,152 24,334,176 Gross Claims Paid 127,255,725 100,449,234 Less Reinsurance 95,823,522 71,020,103 Net Claims 31,432,203 29,429,131 Change In The Value of O/S Claims Reserve At the end of the year 160,301,758 142,272,607 At the beginning of the year 143,678,804 141,159,793 Incurred Losses 48,055,157 30,541,945 Change In The Value of L/R Fluctuation Reserve At the end of the year 147,979,795 127,468,739 At the beginning of the year 127,468,739 122,541,570 Direct Commissions 2,370,948 1,982,914 Inward Reinsurance Commissions 22,769,444 15,843,884 Acquisition Costs 35,488,082 43,703,585 Commissions And Acquisition Costs 60,628,474 61,530,383 General & Administrative Expenses 29,780,273 33,667,467 Other Provisions - - Total Outgo 158,974,960 130,666,964 Profit (Loss) Of Underwriting 46,979,265 1,152,564 Net Income From Allotted Investments 44,036,047 43,381,317 Profit (Loss) Of Engineering Insurance Activities 91,015,312 44,533,881

52 Oil & Gas :

30/6/2014 30/6/2013 Term EGP EGP Income Direct Premiums 772,732,938 870,842,144 Inward Reinsurance Premiums 264,205,498 251,004,430 Gross Premiums 1,036,938,436 1,121,846,574 Less Reinsurance 684,063,111 785,840,865 Net Premiums 352,875,325 336,005,709 Change in the value of Unexpired Risks At the beginning of the year 148,697,956 105,504,484 At the end of the year 160,730,402 146,117,505 Earned Premiums 340,842,879 295,392,688 Outward Reinsurance Commissions 87,319,243 130,220,000 Other Income 3,769,378 1,661,172 Total Income 431,931,500 427,273,860 Outgo Direct Paid Claims 42,304,514 132,969,869 Inward Reinsurance Claims 143,143,002 36,539,087 Gross Claims Paid 185,447,516 169,508,956 Less Reinsurance 43,642,734 122,111,097 Net Claims 141,804,782 47,397,859 Change In The Value of O/S Claims Reserve At the end of the year 411,360,879 290,099,824 At the beginning of the year 294,489,416 205,486,808 Incurred Losses 258,676,245 132,010,875 Change In The Value of L/R Fluctuation Reserve At the end of the year 309,000,660 264,675,709 At the beginning of the year 264,675,709 168,993,592 Direct Commissions 1,575,294 1,275, 007 Inward Reinsurance Commissions 51,776,898 51,501,832 Acquisition Costs 59,163,049 62,115,681 Commissions And Acquisition Costs 112,515,241 114,892,520 General & Administrative Expenses 52,882,221 51,982,664 Other Provisions 4,290,689 1,088,410 Total Outgo 472,689,347 395,656,586 Profit (Loss) Of Underwriting (40,757,847) 31,617,274 Net Income From Allotted Investments 77,378,353 60,578,427 Profit (Loss) Of Oil &Gas Insurance Activities 36,620,506 92,195,701

Annual Report 2013-2014 53 Medical :

30/6/2014 30/6/2013 Term EGP EGP Income Direct Premiums 365,412,717 254,629,580 Inward Reinsurance Premiums 843,256 2,278,445 Gross Premiums 366,255,973 256,908,025 Less Reinsurance 187,494,968 180,531,349 Net Premiums 178,761,005 76,376,676 Change in the value of Unexpired Risks At the beginning of the year 45,321,476 98,289,896 At the end of the year 102,141,920 45,304,604 Earned Premiums 121,940,561 129,361,968 Outward Reinsurance Commissions 2,070,677 1,858,338 Other Income 1,937,678 1,840,351 Total Income 125,948,916 133,060,657 Outgo Direct Paid Claims 318,590,363 359,855,657 Inward Reinsurance Claims 753,405 4,149,211 Gross Claims Paid 319,343,768 364,004,868 Less Reinsurance 180,606,742 180,469,024 Net Claims 138,737,026 183,535,844 Change In The Value of O/S Claims Reserve At the end of the year 28,744,562 13,649,385 At the beginning of the year 13,651,460 10,708,824 Incurred Losses 153,830,128 186,476,405 Change In The Value of L/R Fluctuation Reserve At the end of the year 9,221,692 9,221,692 At the beginning of the year 9,221,692 9,221,692 Direct Commissions 4,932,556 2,139,898 Inward Reinsurance Commissions 146,433 330,565 Acquisition Costs 19,341,323 10,844,949 Commissions And Acquisition Costs 24,420,312 13,315,412 General & Administrative Expenses 35,900,143 24,731,980 Other Provisions 4,650,742 - Total Outgo 218,801,325 224,523,797 Profit (Loss) Of Underwriting (92,852,409) (91,463,140) Net Income From Allotted Investments 10,128,474 9,587,643 Profit (Loss) Of Medical Insurance Activities (82,723,935) (81,875,497)

54 Annual Report 2013-2014 55

56 Contact Information

Head Office 44 A, EIdokki St., Giza – Egypt Hot Line: 19114 P.O.Box: 261 EIdokki Tel. : (+202) 33355350 Fax : (+202) 33370428 Website : www.misrins.com.eg E-mail: [email protected] NORTH CAIRO OFFICE REINSURANCE & SPECIAL RISKS 7, Talaat Harb St., Cairo OPERATIONS Tel. : (+202) 23932600 7, Abdel Latif Boltia St.Garden City Fax : (+202) 23920266 Cairo – Egypt Tel. : (+202) 27918200 - 27918300 Fax : (+202) 27957483 -27957041 P.O.Box: 950 Cairo

ALEXANDRIA OFFICE SOUTH CAIRO OFFICE 66, Elhorreya Road, Alexandria 9, Talaat Harb St., Cairo Phone: (+203) 4847250 Tel. : (+202) 23920300 Fax: (+203) 4870067 Fax : (+202) 23934987

MIDDLE & WEST DELTA OFFICE SUEZ CANAL & Sinai OFFICE 255, Elgalaa St., Tanta Orabi Square, Ismailia Tel. : (+2040) 3312016 Tel. : (+2064) 3915157 Fax : (+2040) 3327019 Fax : (+2064) 3920158

NORTH & MIDDLE UPPER EGYPT EAST DELTA OFFICE OFFICE 8, Elgish St., Bourg El-Mohafza-Elmansoura Sultan Land, Taha Hussein St., Tel. : (+2050) 2310963 Elmenia Fax : (+2050) 2315099 Tel. : (+2086) 2336622 Fax : (+2086) 2336626

SOUTH UPPER EGYPT OFFICE 64 Misr Insurance Building Tel. : (+2093) 2322274 Fax : (+2093) 2323954

Annual Report 2013-2014 57 2014 2013

Annual Report Investment for Life Board of Directors

Dr.Mohamed Ghazy Ibrahim Chairman and C.E.O Mr. Ahmed Abdel Salam Abdel Aziz Executive Member for Insurance Affairs

Mr. Osama Mohamed Abdel Aziz Executive Member for Financial and Administrative Affairs

Dr.Khaled Abdel Aziz Hegazy Non-Executive Board Member

Mr. Talaat Abo El Nadar Abdel Gawwad Staff Representative

Dr. Mohamed Youssef Kamal El Dine Staff Representative

Mr. Ihab Abdel Khalek Abdel Mageed Staff Representative. CHAIRMAN'S MESSAGE

The desire of Egyptian population and the State had helped to cross the stage very fast. It started quickly in the project of digging the new Suez Canal, which is Egypt's national project for the twenty-first century. Egyptian State and all Egyptian institutions willing to launch development and prosperity to build a better vision to the future of our beloved country to return to its position in leadership. Egypt, with what it had as God-given will remain past and present and bright future.

Misr Life Insurance Company as one of the major economic institutions in this country believes that its role, which stretched across more than one hundred and fourteenth years should continue with full strength to provide insurance coverage for millions of Egyptians and continued leadership in this sector while contributing strongly in advancing development by increasing its investment in national projects.

Our Company seeking customer satisfaction as a major target, this goal profound impact in our image that led to the continuation of the company for many years to become the oldest insurance company in Egypt and the Middle East and Africa, the company is always seeking to find new products and to facilitate all procedures for customers, the company believe that customers are partners in success that has been achieved over many years.

We believe that the most important resources of this company is the human resources, it is the essential force driving the economic engine in achieving its objectives, and also we believe that our social role within the community is not less importance in any way from our economic role.

The company continues to renew all branches all over the country up to 180 branch, our system development also included the information technology in all regions and branches, meantime, the company began in activating the protocol on cooperation in banking insurance and the national post in order to further easing on customers as well as the company began the first steps of the new strategy of attracting customers from Egyptians working abroad.

The company will produce new products for micro and small enterprises in order to increase the insurance awareness among the Egyptian population. Meantime, for more convenience for all the company’s customers, the company will process all types of E-payment.

We would like to stress that the management and the employees are very keen to raise the company name and the Egyptian economy. In order to continue the previous efforts that brought the company in this stage of success, and putting customer satisfaction as our goal and measure of our success. Dr. Mohamed Ghazy

Chairman & CEO

62 Company Profile

Historical Overview • Misr Life Insurance established in 29th May 1900 as an Egyptian Joint Stock Company, It was the first Insurance Company established in Egypt and the Arab world. It was known by the name of National Insurance Company of Egypt. • The merger of Alexandria Insurance Company and Cairo Insurance Company in Misr Life Insurance Company took place as from 1965. This merger was after the merger of other eight insurance companies in 1957. • The Presidential decision was issued in 15/7/2006 to establish The Insurance Holding Company and to transfer the four insurance and reinsurance company owned by the government to subsidiaries companies of Misr Insurance Holding company controlled by the rules of law No.203 for the year 1991 regarding the state sector companies and its executive regulation. • In 1/7/2009 the company specialized in Life, Health and pension Insurance as guidance of its situations according to the law No. 118 for the year 2008 which obliged the separation between the Life and the Non-Life Insurance activities. As from 1/7/2010 the Life insurance portfolio has been transferred from Misr Insurance Company to Misr life insurance company in order to form the greatest insurance entity specialized in life insurance activities in Egypt and the region.

Annual Report 2013-2014 63 The Company in Brief: • Misr Life Insurance Company is one of the wholly owned subsidiaries of Misr Insurance Holding Company. • Misr Life Insurance is considered as the leading life company in Egypt and the Middle East with a history that can be traced back 113 years. • With 180 branches across Egypt, Misr Life Insurance has 36% of the life insurance premium of the country in 2013. • At EGP one billion, Misr Life Insurance has the largest paid up capital of any life insurance company in Egypt. • Misr Life Insurance currently offers more than 24 life insurance products and is constantly developing new and innovative products to cater for their client’s ever changing needs. • Misr Life Insurance has 2,000,000 lives insured through 800,000+ individual life insurance policies and 1000+ group life insurance policies. • Misr Life Insurance has total investments in excess of EGP16.6 billion invested in a diverse portfolio. • Misr Life Insurance has 2,350 employees and 4,850 insurance broker experts in life insurance making Misr Life Insurance the life insurance company of choice.

EGP million

Key Financial Highlights 2012/2013 2013/2014

Paid up Capital 1,000 1,000 Total Premium 1,873 2,256 Total Claims Paid 1,699 1,799

Shareholders Equity * 1,387 2,140 Total Investments 14,873 16,599 Net Profit 71 254

* Includes Profit Before Distribution.

64 Vision : Misr Life insurance remains the lighthouse of the insurance industry in the area. Misr Life Insurance is trustworthy by its wide client’s bases, to provide them with distinguished programs for life, health and pension insurance.

Mission : Misr Life Insurance will continue strongly growth and will continue as regional leadership through three integrated principles: - • The satisfaction of our clients is the core of our success and we seek diligent to achieve all our clients’ expectations. • Our programs are the way to consolidate our competitive situation through presenting new programs which fulfilled all different needs to our clients. • Our staff is capable to build an added value to the clients, to himself and to the company, we work and develop ourselves to provide an international service to our clients.

Annual Report 2013-2014 65 Insurance Services :

Misr Life Insurance provides all life (Individual, Group) and medical insurance policies. The Company is constantly developing new and innovative products to cater for their client’s every changing needs and suitable to their income.

First: Individual Life policies Misr Policy – Investment • If the insured is still alive at the policy due date, the company will pay the sum insured mentioned in the policy in addition to the due profits. • If the insured dies during the policy period, the company will pay the 1total sum insured in addition to the total profit due until the date of death.

Misr Policy – Investment Plus The Insurance benefits • If both insured’s are still alive at the policy due date, the company will pay the total sum insured mentioned in 2the policy in addition to the profits the company distributed during the policy period.. • If one of the insured’s dies during the policy period, the company will pay to the other insured the sum insured in addition to the profits the company distributed until the date of death. • If both insured’s die together before the policy due date, the company will pay the sum insured to the beneficiaries mentioned in the policy.

Misr Policy - Protection and Investment The Insurance Benefits • If the insured is still alive at the policy due date, the company will pay the sum insured mentioned in the policy in addition to the total profits due. 3• If the Insured died (natural death) during the policy period the company will pay the sum insured in addition to the total profit due until the date of death. • If the insured died (in an accident) during the policy period, the company will pay double the total sum insured in addition to the total profit due calculated on the original sum insured until the date of death. • The Protection and Investment policy will participate in two lotto each year (25th April & 25th October); the policy holder can win the sum insured. The winning policy will continue in this lotto under the condition of continuing to pay the premium.

66 Misr Policy- Umrah • If the insured is still alive at the policy due date (Ten years), the company will pay the sum insured EGP 15.000 mentioned in the policy to the insured to perform the rituals according to his desire 4and thus end up the insurance. • If the insured dies during the policy period (Ten years) and before the date of maturity of the policy, the beneficiary will have the right to visit to the Holy Land to perform the rituals Umrah and the Company shall bear the cost of the visit in full and up to the sum insured EGP 15.000. The company will take all necessary procedures for the visit in determining the times or organized Tourism Company.

Misr Policy- Hajj and Umrah • If the insured is still alive at the policy due date (Ten years), the company will pay the sum insured EGP 50.000 mentioned in the policy to the insured to perform the rituals according to his desire and thus end up the insurance. 5• If the insured dies during the policy period (Ten years) and before the date of maturity of the policy, the beneficiary will have the right to visit to the Holy Land to perform the rituals Hajj and Umrah and the Company shall bear the cost of the visit in full and up to the sum insured EGP 50.000. The company will take all necessary procedures for the visit in determining the times or organized Tourism Company.

Misr Policy - Distinctive Hajj. • If the insured is still alive at the policy due date (Ten years), the company will pay the sum insured EGP 100.000 mentioned in the policy to the 6insured to perform the rituals according to his desire and thus end up the insurance. • If the insured dies during the policy period (Ten years) and before the date of maturity of the policy, the beneficiary will have the right to visit to the Holy Land to perform the rituals Distinctive Hajj and the Company shall bear the cost of the visit in full and up to the sum insured EGP 100.000. The company will take all necessary procedures for the visit in determining the times or organized Tourism Company.

Misr Policy - Pension. The Insurance benefits • If the insured is still alive at the policy due date, the company will pay a monthly pension starting from the month following retirement and for lifetime with minimum payment of 15 years. 7• If the insured dies before retirement, the company will pay to the beneficiaries 12 months of the monthly pension at once. Also, the company will pay a monthly pension starting from the month following the insured death until the policy due date with minimum payment of 15 years.

Annual Report 2013-2014 67 Misr Policy - Pension Plus • If the insured is still alive at the policy due date, the company will pay a monthly pension increased by 5% each year (simple increase) and for 15 years after the age of retirement then the monthly pension will be 8fixed amount 170% from the first monthly pension for lifetime. • If the insured dies before retirement, the company will pay to the beneficiaries 12 months of the monthly pension at once. Also, the company will pay a monthly pension started from the month following the insured death until the policy due date with minimum payment of 15 years.

Misr Policy - Protection The sum insured will be paid to the beneficiaries only if the insured dies during the policy period. Therefore, this program is privileged with the low rate and premium. The minimum age for the insured at the beginning of the policy should be 20 years old and the maximum is 69 years old. 9The policy minimum period is one year and maximum is 30 years.

Misr Policy - Protection Plus. The Company guarantees to the bank according to this policy wording to take place the insured if he died during the loan period by paying the loan 10 amount all at once. Misr Policy - The Trilogy • If the Insured is still alive at the policy due date, the company will pay: A) 25% of the sum insured at the end of 1/3 of the insurance period. B) 25% of the sum insured at the end of 2/3 of the insurance period. C) 50% of the sum insured at the end of the insurance period. 11 • If the Insured dies during the policy period the company will pay the total sum insured regardless the amounts which have been paid to the insured. • This policy participates in the profit which the company distributes on an annual basis; each policy’s share from the profit depends on the amount which will be received from the last payment if the insured is still alive or on the due date if the insured has died.

Misr Policy - The Millennium 1. If the insured is still alive at the policy due date • The company will pay the sum insured mentioned in the policy. • The company will pay a guaranteed annual profit of EGP 40 for every EGP 2000. • The company will pay additional profits from the company surplus 12profits from this line of policy. 2. If the insured dies before the policy due date • The company will pay the sum insured at once. • The company will pay the same value for the policy due date.

68 • The company will pay a guaranteed annual profit of EGP 40 for every EGP 2000 until the date of death. • The company will pay additional profits from the company surplus profits from this line of policy until the date of death.

Misr Policy - The Teacher • If the insured is still alive at the policy due date, the company will pay the sum insured mentioned in the policy in addition to the total profits due. • If the Insured dies (natural death) during the policy period the company 13will pay the sum insured in addition to the total profit due until the date of death. • If the insured dies (in an accident) during the policy period, the company will pay double the total sum insured in addition to the total profit due calculated on the original sum insured until the date of death. • If the insured retires due to Total Permanent Disablement the company will pay the sum insured in addition to the profit due until the date of being injured. Secound: Group Life Insurance Misr Life insurance considered the largest life insurance company in Egypt and in the Middle East, the company is leading in the group life insurance with its technical expertise and high capacity to meet its obligations and its diversified portfolio which have all the forefront Group life of all the sovereign state and the main public and private sector. The Group Life Insurance is considered the most important division of Misr Life Insurance for the following advantages: - Meet the needs of employers and employees to have insurance. - Provide peace of mind and security for the workers future and their families. - Maintain the excellent workers and increase their loyalty to the employer. - Increased stability in the work and thus increase profitability. - Group Life Insurance provides large insurance services at an economical simple cost.

Misr Life Insurance has numerous engagements with institutions and companies to cover its insurance needs such as: 1- Temporarily Group life insurance (insurance coverage in case of death) Usually performs this type of insurance unions and syndicates for their members to find a certain amount paid for them in the case of death of one of its members during the period of insurance. Also employer doing same on the lives of his staffs to ensure the payment of a certain amount upon the death of the employees during the service period to be as part of the reward leaving the service or as addition pensions according to the systems in place. Among the most important characteristic of this type of contract is the low premium paid compared to the amounts that are committed by our company at the time of death. 2- Insurance coverage to ensure the refund of bank loans and Mortgage Finance Insurance contract temporary declining an insurance contract temporary amounts of insurance decreasing and which is committed to the insurance company peer- premium simple to pay the amount of insurance remaining loan balance ( in the case of death of the insured during the period of insurance. This type of insurance is commonly used in the case of loans that are repayable in installments in during a certain period and used in real estate financing , as is the case with mortgage companies as well as banks or used for other purposes such as buying cars or durable goods , or a personal loan in installments if he died debtor ( insured ) before the end of the period of repayment of the debt which is the period of insurance pay the insurance company to the creditor the remaining amount of the debt.

Annual Report 2013-2014 69 3- Insurance coverage for savings and retirement This insurance is usually performed by the business owners to cover the reward of the service ending, those contracts usually issued for death, permanent total disability and accident. Under which an amount is paid per person covered by this insurance policy when the insured reaches the retirement age. 4- Group Endowment Policy with profits This type of insurance covers death and permanent total disability or accidental death before the end of the insurance period or the insured reaches the age of retirement where the company paid of the sum insured in addition to the profits according to the company rules. 5- Insurance coverage for supplementary pension payment in case of death or retirement This insurance policy is the latest existing pension programs in the Egyptian insurance market, which aims to compensate the low value of the pension on the average pre - retirement income and to give the liberty to policy holder to select the appropriate retirement age, also to determine the value of the monthly pension received by the insured under this policy. According to this policy it will be paid a monthly pension in case the insured still alive when they reach the age of maturity paid to him monthly pension determined by the lifetime and a minimum of 15 years, in the case of death before reaching the age of maturity distract the beneficiaries of an immediate boost from the monthly pension immediately after the insured death and monthly pension as from the month following the date of death until the policy due date with a minimum period of 15 years, the insured can reduce the number of years that lead the pension and thus decrease the premiums paid by the insured. Third: Health Insurance The company offers to the customers unique services in the field of health insurance through health insurance policies for the groups and their families and for individuals to cover the cost of treating diseases and injuries that the insured can suffered during the insurance period, including : 1- The Group Health Insurance Policy The purpose of these programs is to provide a complete health insurance program for all employees at your companies to help them handling the health insurance rising expenses. The group health insurance considered among the benefits provided by the employer to the employees, it become one of the features of the job that the employee is very keen on working at recruitment, as well as the advantages of motivation, this help to raise the confidence of the employees and the stability at work which reflected on the spirit of innovation and development of the workers. The company understands the importance of group health insurance and the important role it plays in advancement of the peoples and the communities’ level. Therefore, Misr Life Insurance Company as one of the leading companies in this area developed a set of programs that are designed specifically to meet the desires and needs of its customers based on our existing expertise and human power and competencies of actuarial specialist able to evaluate the risks and relying on sitting the data and statistics relating to disease ratio, and all services provided by medical taken into account the medical services rates and the continuous of increasing in the prices of those services. 2- The Individual Health Insurance Policy he company is very keen to find solutions and alternatives appropriate to protect you and your family from the dangers of diseases and epidemics, and the expensive costs of treatment bulky experienced by all members of the Egyptian families. Also, the company is very keen to provide medical service to its customers with the highest level of care and quality to be suitable to the company status among its customers... Therefore, we were and still devoted on your health care for you and your family members, The Company have designed programs for individual health treatment that fits your needs and your family needs to satisfy all your wishes, and from these covers the following: I- The basic insurance coverage’s include • The cost of treatment in hospitals. • Surgical expenses. • Medical expenses disclosures have consultants and specialists. • The costs of medicines for ordinary diseases / chronic diseases. • The costs of medical tests. • The X-Rays expenses of all kinds. • Physiotherapy expenses. • The expenses of medical supplies. • The medical expenses of emergency situations and accidents. II- Additional insurance coverage’s include • The costs of eyeglasses. • The costs of pregnancy and dental expenses. • Childbirth costs (natural / caesarean). • Pregnancy follow-up expenses and childbirth • The expenses of legal abortion

70 The Main Financial Indicators for year 2013/2014

The Premiums The Gross premiums amounted to EGP 2.256 billion on 30/6/2014 compared to EGP 1.873 billion on 30/6/2013 with an increase amount of EGP 383.1 million and increase ratio of 20.4 %.

EGP 000’s Description 2012/2013 2013/2014 Growth Rate

Individual 898,796 1,034,776 15.1 %

Group 951,524 1,193,362 25.4 %

Health 22,998 28,222 22.7 %

Total 1,873,318 2,256,360 20.4 %

Individual Group Health Total EG.P 000’s EG.P 000’s EG.P 000’s 1193362 28222 1200000 1200000 30000 25000 1034776 2.256.360 898796 1000000 951524 1000000 25000 1.873.317 22998 20000 800000 800000 20000 15000 600000 600000 15000 10000 400000 400000 10000 5000 200000 200000 5000

0 0 0 0 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 Individual Group Health Total EG.P 000’s EG.P 000’s EG.P 000’s 1193362 28222 1200000 1200000 30000 25000 1034776 2.256.360 898796 951524 1.873.317 1000000 1000000 EG.P 000’s25000 22998 20000 2500000 800000 800000 2256360 20000 15000 The Development600000 of the Premiums600000 200000015000 10000 1638161 1873318 400000 400000 10000 1467725 1500000 5000 200000 200000 1495691 5000 EGP 000’s

0 0 10000000 0 2013/2014 Description2012/2013 20132009/2010/2014 2012/2013 2010/20112010 2011 20132012/2014 20132011/201220122014/2013 2012/20132013/2014 2012/2013/20142013

Gross Premiums 1,467,725 1,495,691 1,638,161 1,873,318 2,256,360

EG.P million EG.P million EG.P million 20000 80000 150000 75002 130446 70000 15009 14001 120000 15000 107111 EG.P 000’s 57995 60000 90000 2500000 50000 10000 2256360 40000 60000 30000 5000 20000 30000 2000000 10000 0 0 0 2013/2014 2012/2013 2013/2014 16381612012/20131873318 2013/2014 2012/2013 1467725 1500000 1495691

1000000 2010 2011 2012 2013 2014 Individual Group Health Total EG.P 000’s EG.P 000’s EG.P 000’s EG.P 000’s 24431 900000 1100000 25000 2000 1003333 771046 1001178 1000000 1798810 800000 1699351 1800 681361 900000 700000 20000 1600 800000 16812 1400 600000 700000 EG.P million EG.P million 15000 EG.P1200 million 500000 600000 20000 150000 800001000 400000 500000 75002 71 Annual Report 2013-2014 10000 800 300000 130446 400000 70000 15009 300000 600 14001 200000 120000 15000 107111 200000 5000 57995 60000400 100000 100000 200 0 0 0 500000 2013/2014 2012/2013 2013/2014 2012/2013 90000 2013/2014 2012/2013 2013/2014 2012/2013 10000 40000 60000 30000 5000 20000 30000 10000 EG.P 000’s 0 0 0 2013/2014 2012/2013 2013/2014 2012/2013 20000002013/2014 2012/2013 1798810 1699351 1542552

1500000

1239007

1046954

1000000 2010 2011 2012 2013 2014 Individual Group Health Total EG.P 000’s EG.P 000’s EG.P 000’s EG.P 000’s 24431 900000 1100000 25000 2000 1003333 14177780 EG.P 000’s 771046 1001178 1000000 1798810 800000 12969940 14000000 EG.P million1699351 1800 12028465 681361 10971233 900000 14000 700000 12000000 2000014,178 1600 800000 12,970 16812 12000 1400 600000 700000 10000000 9751284 15000 10000 1200 500000 600000 8000000 8000 1000 400000 500000 6000000 10000 6000 800 300000 400000 4000000 300000 4000 600 2000000 200000 5000 400 200000 2000 0 100000 2009 2010 2011 2012 1000020130 200 0 0 0 0 2013/2014 2012/2013 0 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013

EG.P million EG.P million 20000 1524 1600 1425 16599 1400 14873 1200 EG.P 000’s 15000 1000 2000000 800 1798810 10000 600 1699351 400 1542552 5000 200

0 1500000 0 2013/2014 2012/2013 2013/2014 2012/2013 1239007

1046954

EG.P 000’s 1000000 2010 2011 2012160000002013 2014 EG.P million 15849845 20000 14857198 14000000 13824758 17756 12000000 15850 12623401 15000 10928624 10000000 8000000 10000 14177780 EG.P 000’s 6000000 4000000 12969940 14000000 EG.P million 12028465 2000000 5000 10971233 14000 12000000 0 14,178 2009 2010 2011 2012 2013 12,970 0 12000 10000000 2013/2014 2012/2013 9751284 10000 8000000 8000 6000000 6000 4000000 4000 2000000 2000 0 2009 2010 2011 2012 2013 0 2013/2014 2012/2013

EG.P million EG.P million 20000 1524 1600 1425 16599 1400 14873 1200 15000 1000 800 10000 600 400 5000 200

0 0 2013/2014 2012/2013 2013/2014 2012/2013

EG.P 000’s 16000000 EG.P million 15849845 20000 14857198 14000000 13824758 17756 12000000 15850 12623401 15000 10928624 10000000 8000000 6000000 10000 4000000 2000000 5000 0 2009 2010 2011 2012 2013 0 2013/2014 2012/2013 Individual Group Health Total EG.P 000’s EG.P 000’s EG.P 000’s 1193362 28222 1200000 1200000 30000 25000 1034776 2.256.360 898796 1000000 951524 1000000 25000 1.873.317 22998 20000 800000 800000 20000 15000 600000 600000 15000 10000 400000 400000 10000 5000 200000 200000 5000

0 0 0 0 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013

Individual Group Health Total EG.P 000’s EG.P 000’s EG.P 000’s 1193362 28222 1200000 1200000 30000 25000 1034776 2.256.360 898796 EG.P 000’s 951524 1.873.317 1000000 1000000 25000 20000 2500000 22998 8000022563600 800000 20000 15000 600000 600000 15000 2000000 10000 400000 400000 10000 1638161 1873318 5000 1467725 200000 200000 5000 1500000 1495691 0 0 0 0 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013

1000000 2010 2011 2012 2013 2014 Individual Group Health Total EG.P 000’s EG.P 000’s EG.P 000’s 1193362 28222 1200000 1200000 30000 25000 The Sum Insured of the new business 1034776 2.256.360 898796 EG.P 000’s 1000000 951524 1000000 25000 1.873.317 EG.P million EG.P million EG.P million 2500000 22998 20000 The Total Sum20000 Insured for the new business (group150000 and 80000 2256360 75002 800000 800000 20000 130446 70000 15000 15009 individual)14001 amounted EGP 75.002 billion in the financial120000 year 600000 600000 15000 15000 107111 57995 60000 2000000 10000 2013/2014 compared to EGP. 57.995 billion in the financial year 400000 400000 90000 1638161 500001873318 10000 10000 1467725 40000 5000 2012/2013 with an increase of EGP 17.007 billion and growth 200000 1500000 200000 5000 60000 1495691 30000 ratio of 29.3%. 0 0 0 0 5000 2013 2014 2012200002013 2013 2014 2012 2013 2013 2014 2012 2013 2013 2014 2012 2013 30000 / / / / / / / / 10000 1000000 2010 2011 2012 2013 2014 0 0 0 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013

Valid Sum Insured EG.P 000’s EG.P million EG.P million EG.P million Individual Group Health Total 2500000 The total sum insured for the valid life business (issued20000 for 150000 80000 EG.P 000’s EG.P 000’s EG.P 000’s 75002 2256360 1193362 28222 1200000 1200000 30000 130446 25000 70000 group and 1034776individual) amounted15009 EGP 130.446 billion on 2.256.360 898796 14001 120000 1000000 951524 1000000 15000 25000 1.873.317107111 57995 60000 30/6/2014Individua comparedl to EGP 107.111Group billion on 30/6/2013 with22998 Health 20000Total 2000000 800000 800000 20000 90000 50000 EG.P 000’s EG.P 000’s EG.P 000’s 15000 EG.P 000’s 1638161 1873318 1000024431 40000 an increase of EGP90000 23.3350 60000 billion0 and growth1100000 ratio600000 of 21.8%. 15000 25000 2000 1467725 1003333 10000 771046 1001178 1000000 1798810 60000 30000 1500000 800000 400000 400000 10000 1699351 1800 681361 900000 1495691 700000 5000 20000 5000 1600 20000 200000 80000200000 0 16812 5000 30000 600000 1400 10000 0 700000 0 0 0 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 150002013/2014 2012/2013 1200 1000000 500000 600000 0 0 0 1000 2010 2011 2012 2013 2014 400000 2013/2014 201250000/20130 2013/2014 2012/2013 2013/2014 2012/2013 10000 800 300000 400000 300000 600 200000 Mathematical reserve 200000 5000 400 100000 100000 200 0 0 EG.P 000’s 0 0 2013The/2014 Mathematical2012/2013 reserves2013 /amounted2014 2012 /2013EGP 15.0092013 billion/2014 on 20122500000/2013 2013/2014 2012EG.P/2013 million EG.P million EG.P million 2256360 20000 80000 150000 75002 30/6/2014 compared to EGP 14.001 billion on 30/6/2013 with 130446 70000 15009 2000000 14001 120000 Individual Group 15000 Health 107111 Total 57995 60000 an increase of EGP 1.008 billion and growth ratio1638161 of 7.2%.1873318 1467725 EG.P 000’s EG.P 000’s EG.P 000’s 90000 EG.P 000’s 50000 1500000 24431 1495691 900000 1100000 10000 25000 2000 40000 1003333 1001178 1798810 771046 1000000 1800 800000 EG.P 000’s 169935160000 30000 681361 900000 700000 10000002000000 20000 1600 2010 2011 2012 2013 2014 800000 5000 16812 20000 30000 1400 6000017988100 700000 The Claims 15000 1200 10000 1699351 500000 600000 0 0 1000 0 1542552 400000 500000 The total claims paid amounted to EGP 1798.8 million on 30/6/2014 2013/2014 2012/2013 100002013/2014 2012/2013 800 2013/2014 2012/2013 300000 400000 EG.P million EG.P million 1500000 EG.P30000 million0 600 compared to EGP 1699.420000 million on 30/6/2013 with an increase200000 80000 150000 75002 200000 5000 400 1304461239007 100000 70000 15009 100000 200 amount of EGP 99.414001 million and increase ratio of 5.9%. 120000 15000 107111 0 57995 060000 0 0 1046954 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 90000 50000 EGP000’s 10000 1000000 40000 Description 2010 2012/20132011 2012 600002013 2014 2013/2014 30000Growth Rate 5000 20000 30000 Individual Group Health Individual 681,361 771,046 10000 13.2 % Total 0 0 0 EG.P 000’s EG.P 000’s EG.P 000’s EG.P 000’s Group2013/2014 2012/2013 2013/1,001,1782014 2012/2013 1,003,3332013/2014 2012/2013 0.2 % 24431 900000 1100000 25000 2000 1003333 1001178 EG.P 000’s 771046 EG.P 000’s 1000000 1798810 Health 14177780 16,812 24,431 45.3 % 800000 1699351 1800 14000000 681361EG.P million 2000000 900000 12969940 700000 20000 1600 12028465 800000 Total10971233 1,699,351 1,798,810 5.914000 % 1798810 16812 1400 12000000 14,178 600000 700000 12,970 1699351 12000 15000 1200 10000000 500000 600000 1542552 1000 9751284 10000 400000 500000 8000000 400000 10000 800 Individual Group Health Total 300000 1500000 8000 300000 600 EG.P 000’s 6000000EG.P 000’s EG.P 000’s EG.P 000’s 24431 200000 5000 900000 1100000 25000 2000 200000 400 1003333 1239007 6000 771046 100117840000001000000 1798810 100000 800000 1699351 1800 100000 200 681361 900000 700000 20000 1600 4000 0 0 0 0 800000 1046954 2000000 16812 2013/2014 20121400 /2013 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 600000 700000 15000 1200 2000 500000 0 600000 1000000 1000 2009 2010 2011400000 2012 2013 500000 2010 2011 2012 2013 2014 10000 800 0 300000 400000 2013/2014 2012/2013 300000 600 200000 200000 5000 400 100000 100000 200 0 0 0 0 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 14177780 EG.P 000’s EG.P 000’s 12969940 14000000 EG.P million 12028465 2000000 10971233 14000 12000000 EG.P million 14,178 1798810 EG.P million 12,970 72 20000 169935112000 1524 1600 10000000 1425 9751284 16599 1542552 10000 1400 EG.P 000’s 8000000 2000000 14873 15000 8000 1200 1798810 6000000 1500000 1000 1699351 6000 1542552 4000000 1239007 800 10000 4000 2000000 1500000 1046954 600 2000 1239007 0 400 2009 2010 2011 2012 2013 5000 1000000 2010 2011 2012 0 2013 2014 200 1046954 2013/2014 2012/2013 1000000 0 2010 2011 2012 2013 2014 0 2013/2014 2012/2013 2013/2014 2012/2013

14177780 EG.P 000’s EG.P million 14177780 EG.P 000’s 12969940 14000000 EG.P million 12028465 12969940 14000000 10971233 EG.P million 14000 12028465 EG.P million 12000000 14 178 10971233 14000 , 12000000 14,178 20000 12,970 EG.P 000’s 1600 12,970 12000 1524 12000 10000000 10000000 16000000 1425 EG.P million 16599 9751284 1400 10000 9751284 10000 15849845 8000000 800000014873 14000000 20000 15000 14857198 1200 8000 8000 13824758 6000000 17756 6000000 12000000 1000 600015850 12623401 4000000 6000 10000000 4000 15000 4000000 10928624 2000000 800 10000 4000 2000 80000000 600 2000000 2009 2010 2011 2012 2013 0 10000 2000 6000000 2013 2014 400 2012 2013 0 5000 / / 2009 2010 2011 2012 2013 4000000 200 0 2013/2014 2012/2013 5000 2000000 0 2013/2014 2012/2013 0 0 2013/2014 2012/2013 2009 2010 2011 2012 2013 0 EG.P million EG.P million 2013/2014 2012/2013 20000 1524 1600 1425 16599 1400 14873 EG.P million 1200 15000 EG.P million EG.P 000’s 20000 1000 1600 1524 EG.P million 800 160000010000 0 1425 16599 15849845 1400 14873 600 14000000 20000 14857198 15000 13824758 177561200 400 12000005000 0 15850 12623401 200 1000 10000000 15000 0 10928624 2013/2014 2012/2013 0 800 10000 2013/2014 2012/20138000000 600 6000000 10000 400 5000 4000000 200 2000000 5000 EG.P 000’s 0 0 16000000 0 EG.P million 2013/2014 2012/2013 2013/2014 2012/2013 15849845 2009 2010 2011 2012 2013 20000 14857198 14000000 0 13824758 17756 2013/2014 2012/2013 12000000 15850 12623401 15000 10928624 10000000 8000000 6000000 10000 4000000 EG.P 000’s 2000000 5000 16000000 EG.P million 15849845 0 20000 2009 2010 2011 2012 2013 14857198 14000000 0 13824758 17756 2013/2014 2012/2013 12000000 15850 12623401 15000 10928624 10000000 8000000 6000000 10000 4000000 2000000 5000 0 2009 2010 2011 2012 2013 0 2013/2014 2012/2013 Individual Group Health Total EG.P 000’s EG.P 000’s EG.P 000’s 1193362 28222 1200000 1200000 30000 25000 1034776 2.256.360 898796 1000000 951524 1000000 25000 1.873.317 22998 20000 800000 800000 20000 15000 600000 600000 15000 10000 400000 400000 10000 5000 200000 200000 5000

0 0 0 0 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013

Individual Group Health Total EG.P 000’s EG.P 000’s EG.P 000’s 1193362 28222 1200000 1200000 30000 25000 1034776 2.256.360 898796 EG.P 000’s 1000000 951524 1000000 25000 1.873.317 22998 2500000 20000 2256360 800000 800000 20000 15000 600000 600000 15000 2000000 10000 400000 400000 10000 1638161 1873318 5000 200000 1467725 200000 5000 1500000 0 14956910 0 0 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013

1000000 2010 2011 2012 2013 2014

EG.P 000’s 2500000 EG.P million EG.P million2256360 EG.P million 20000 80000 150000 75002 130446 2000000 70000 15009 14001 120000 15000 57995 1071111638161 1873318 60000 1467725 50000 90000 1500000 10000 1495691 40000 60000 30000 5000 1000000 20000 2010 2011 2012 201330000 2014 10000 0 0 0 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013

EG.P million EG.P million EG.P million 20000 80000 150000 75002 130446 70000 15009 14001 120000 15000 107111 57995 60000

90000 50000 10000 40000 Individual Group Health Total 60000 30000 5000 EG.P 000’s EG.P 000’s EG.P 000’s EG.P 000’s 24431 20000 900000 1100000 30000 25000 2000 1003333 10000 771046 1001178 1000000 1798810 800000 1699351 1800 6813610 900000 0 0 2013/2014 2012/2013 700000 2013/2014 2012/2013 2013/201420000 2012/2013 1600 800000 16812 1400 600000 700000 15000 1200 500000 600000 1000 400000 500000 10000 800 300000 400000 300000 600 200000 200000 5000 400 100000 100000 200 The Development0 of the Claims0 Paid 0 0 2013/2014Individua2012l /2013 2013/2014 Group2012/2013 2013/2014 Health2012/2013 2013/2014Total EGP000’s2012/2013 EG.P 000’s EG.P 000’s EG.P 000’s EG.P 000’s 24431 900000 1100000 25000 2000 Description 10033332009/2010 2010/2011 2011/2012 2012/2013 2013/2014 771046 1001178 1000000 1798810 800000 1699351 1800 681361 900000 700000 20000 1600 800000 Premiums 1,046,954 1,239,007 1,542,55216812 1,699,351 1,798,8101400 600000 700000 15000 1200 500000 600000 1000 400000 500000 EG.P10000 000’s 800 300000 400000 2000000 300000 600 200000 200000 1798810 5000 400 100000 100000 1699351 200 0 0 0 0 2013/2014 2012/2013 2013/2014 2012/2013 15425522013/2014 2012/2013 2013/2014 2012/2013

1500000

1239007

1046954

EG.P 000’s1000000 2010 2011 2012 2013 20142000000 1798810 1699351 1542552 EG.P million 20000 EG.P 000’s The Provisions 14177780 1500000 EG.P million 12969940 14000000 15154 14178 12028465 15000 10971233 1239007 14000 The total technical provision of the Policyholder1200000 0rights amounted 14,178 12,970 1046954 12000 15.154 billion on 30/6/2014 compared1000000 to 14.1780 billion on 10000 9751284 1000000 10000 30/6/2013 with an increased amount of8000000 EGP 976.5 millin and 2010 2011 2012 2013 2014 5000 8000 increased ratio of 6.9%. 6000000 6000 4000000 0 2013/2014 2012/2013 4000 2000000 14177780 EG.P 000’s 2000 12969940 14000000 0 EG.P million 12028465 2009 109712332010 2011 2012 2013 14000 12000000 14,178 0 2013 2014 12,970 2012 2013 / /12000 The Development of the Policyholder10000000 rights 9751284 10000 8000000 EGP 000’s 8000 6000000 Description 2009/2010 2010/2011 2011/2012 2012/2013 2013/20146000 4000000 4000 2000000 EG.P million Policyholder rights 10,971,233EG.P million 12,028,465 12,969,940 14,177,780 15,154,260 2000 0 20000 2009 20101524 2011 2012 20131600 1425 16599 0 1400 2013/2014 2012/2013 14873 The Investments 1200 15000 The company total investment amounted1000 to EGP 16.599 billion on 30/6/2014 compared to EGP 14.873 800 10000 billion on 30/6/2013 with an increase600 amount of EGP EG.P million EG.P million 1.726 billion. 400 20000 5000 1524 1600 In this regards, we would1425 like to 20point0 out that our 16599 1400 14873 contributions in companies cover0 all economy sectors 15000 0 2013/2014 2012/2013 1200 2013/2014 2012/2013 on the national level, and the most1000 important are: *Banking Sector *Finance and80 Investment0 10000 Sector *Fertilizers and Petrochemicals600 Sector *Telecommunications and Information400 Technology 5000 *Tourism Sector *Mineral Industries200 SectorEG.P 000’s 0 16000000 EG.P million *Administration2013/2014 &Services2012/2013 Sector *Medical and Therapeutic 0 15849845 2013/2014 2012/2013 20000 14857198 14000000 Sector *Food sector13824758 *The Petroleum Sector 17756 12000000 15850 12623401 15000 10928624 Annual1000000 Report0 2013-2014 73 8000000 EG.P 6000000000’s 10000 16000000 EG.P million 4000000 15849845 20000 14857198 14000000 13824758 2000000 17756 5000 12000000 15850 12623401 0 2009 2010 2011 2012 2013 10000000 15000 10928624 0 8000000 2013/2014 2012/2013 6000000 10000 4000000 2000000 5000 0 2009 2010 2011 2012 2013 0 2013/2014 2012/2013 Individual Group Health Total EG.P 000’s EG.P 000’s EG.P 000’s 1193362 28222 1200000 1200000 Individual 30000 Group 25000 Health Total 1034776 2.256.360 898796 EG.P 000’s EG.P 000’s EG.P 000’s 1000000 951524 1000000 25000 1193362 1.873.317 28222 22998 1200000 200001200000 30000 25000 1034776 2.256.360 800000 800000 89879620000 1000000 951524 150001000000 25000 1.873.317 22998 20000 600000 600000 15000 800000 800000 20000 10000 15000 400000 400000 10000 600000 600000 15000 5000 10000 200000 200000 5000 400000 400000 10000 0 0 0 0 5000 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 200000 2013/2014 2012/2013 200000 5000

0 0 0 0 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013

EG.P 000’s 2500000 2256360 EG.P 000’s 2500000 2256360 2000000

1638161 1873318 2000000 1467725 1500000 1873318 1495691 1638161 1467725 1500000 1495691 1000000 2010 2011 2012 2013 2014

1000000 2010 2011 2012 2013 2014

EG.P million EG.P million EG.P million 20000 80000 150000 75002 130446 EG.P million 70000 EG.P million EG.P million 15009 14001 120000 20000 80000 15000 107111 57995 60000 150000 75002 130446 70000 15009 50000 90000 14001 120000 15000 107111 57995 60000 10000 40000 50000 60000 30000 90000 10000 40000 5000 20000 30000 60000 30000 10000 5000 20000 0 0 0 30000 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 10000 0 0 0 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013

Individual Group Health Total EG.P 000’s EG.P 000’s EG.P 000’s EG.P 000’s 24431 900000 1100000 Individual 25000 Group 2000 Health Total 1003333 771046 1001178 1000000 1798810 800000 EG.P 000’s 1699351 1800EG.P 000’s EG.P 000’s EG.P 000’s 681361 900000 24431 700000 20000900000 1600 1100000 25000 2000 800000 16812 1003333 1001178 1798810 771046 800000 1400 1000000 1800 600000 700000 1699351 681361 15000 1200 900000 500000 700000 20000 1600 600000 800000 1000 16812 1400 400000 500000 600000 700000 10000 800 15000 1200 300000 400000 500000 600000 300000 600 1000 400000 500000 200000 5000 400 200000 400000 10000 800 100000 300000 100000 200 300000 600 0 0 0 200000 0 5000 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 200000 400 100000 100000 200 0 0 0 0 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013

EG.P 000’s 2000000 1798810 EG.P 000’s 1699351 2000000 1542552 1798810 1699351 1500000 1542552 1239007 1500000

1046954 1239007 1000000 2010 2011 2012 2013 2014 1046954 1000000 2010 2011 2012 2013 2014

14177780 EG.P 000’s 12969940 14000000 EG.P million 12028465 10971233 14000 EG.P 000’s 12000000 14,178 14177780 12,970 14000000 EG.P million 12969940 12000 10000000 12028465 10971233 14000 9751284 12000000 14,178 10000 12,970 8000000 12000 10000000 8000 The following statement shows the breakdown6000000 of the investments 9751284in different channels: 10000 8000000 6000 4000000 8000 EGP 000’s6000000 4000 2000000 6000 Fixed 4000000 2000 Year Real Estate 0 Securities Loans Deposits Total 4000 2009 2010 2011 2012 2013 2000000 0 with2013/ 2014Banks 2012/2013 2000 0 2009 2010 2011 2012 2013 30/6/2014 18,530,294 12,119,756,345 444,381,185 4,016,159,702 16,598,827,526 0 2013/2014 2012/2013 30/6/2013 20,304,422 10,427,611,207 421,655,770 4,003,430,879 14,873,002,278

EG.P million EG.P million 20000 The Return of1524 Investment 1600 1425 16599 EG.P million 1400 EG.P million 14873 20000 The Net Earned Income of Investment in 30/6/2014 1600 1200 1524 15000 1425 16599 1400 amounted to EGP 1.524 million compared1000 with EGP 1.425 14873 1200 15000 million in 30/6/2013 with an increased800 amount of EGP 99 10000 1000 600 million and increased ratio of 6.9%. 800 10000 400 5000 600 200 400 0 5000 2013 2014 2012 2013 0 / / 2013/2014 2012/2013 200

0 0 2013/2014 2012/2013 2013/2014 2012/2013

EG.P 000’s The Total Assets 16000000 EG.P million 15849845 20000 EG.P 000’s The Company total assets 14857198amounted EGP1400000 17.7560 billion on 13824758 17756 16000000 EG.P million 12000000 15850 12623401 15849845 30/6/2014 compared to EGP 15.850 billion on 30/6/2013 14000000 20000 10000000 14857198 15000 10928624 13824758 17756 12000000 15850 with an increase amount of EGP 1.906 billion.8000000 12623401 10000000 15000 6000000 10928624 10000 8000000 4000000 6000000 10000 2000000 5000 4000000 0 2009 2010 2011 2012 2013 5000 0 2000000 2013/2014 2012/2013 0 2009 2010 2011 2012 2013 0 2013/2014 2012/2013 Net Profit The companys net profits for the year 2013/2014 EG.P million amounted to EGP 253.8 million compared to 300 EGP 70.9 million in the financial year 2012/2013 253.8 with growth ratio of 257.9%. 250

200

150

100 70.9 50

0 2013/2014 2012/2013

74 Misr Life Insurance Co. Financial Statements for the Fiscal year Ended 30/6/2014 Balance Sheet 30/6/2014 30/6/2013 Term EGP EGP Assets Cash 18,969,934 19,844,733 Investments Fixed Deposits With Banks 4,016,159,702 4,003,430,879 Treasury bills 7,596,197,724 6,547,569,873 Securities for Sale Trading securities 4,311,893,893 3,692,536,369 Loans 444,381,185 421,655,770 Non-Trading Securities 211,664,728 187,504,964 Total Financial investments 16,580,297,232 14,852,697,856 Investment in real estate 18,530,294 20,304,422 Total investments 16,598,827,526 14,873,002,278 Insurance Accounts Receivable (net) 72,881,076 56,862,770 Insurance & Reinsurance Co.(net) 39,342,590 23,946,987 Debtors & other debit balances 990,366,630 851,496,705 Fixed assets (net) 35,646,316 24,691,592 Total assets 17,756,034,073 15,849,845,067 Liabilities & shareholders› Funds Policyholders Funds Life Technical reserves 15,154,259,848 14,177,779,871 Total policyholders Funds 15,154,259,848 14,177,779,871 Insurance & Reinsurance Co. 53,238,936 32,258,255 Creditors & other credit balances 369,336,749 217,614,216 Other provisions 38,578,753 34,739,472 Total liabilities 15,615,414,286 14,462,391,814 Shareholders› Funds Paid up capital 1,000,000,000 1,000,000,000 Reserves 38,898,395 31,731,897 Retained losses -52,134,458 Differences in Reevaluation of securities 900,095,908 284,842,519 Profit Before Distribution 253,759,942 70,878,837 Total shareholders’ Funds 2,140,619,787 1,387,453,253 Total liabilities & shareholders’ Funds 17,756,034,073 15,849,845,067 Statement of Income 30/6/2014 30/6/2013 Term EGP EGP Profit (Deficit) of Insurance Activity Life insurance Activity 298,711,208 35,500,613 Total 298,711,208 35,500,613 Net income of the unallocated investments 46,624,982 46,726,282 Other income 32,180,144 108,782,748 Total income 377,516,334 191,009,644 Depreciation of unallocated fixed assets 3,020,520 1,789,786 Decay Losses 47,959,360 56,034,841 Other provisions 7,320,014 821,099 Doubtful Debts Provision 5,637,737 4,391,431 Other expenses 59,818,761 57,093,649 Net profit for the Year 253,759,942 70,878,837

Annual Report 2013-2014 75 Consolidated Revenues & Expenses Statement

30/6/2014 30/6/2013 Term EGP EGP Income Direct Premiums 2,256,306,853 1,871,741,524 Inward Reinsurance Premiums 53,210 1,576,023 Gross Premiums 2,256,360,063 1,873,317,547 Less Reinsurance 136,709,761 103,516,024 Net Premiums 2,119,650,301 1,769,801,523 Change in the value of Mathematical Risks Reserve At the beginning of the year 14,071,048,432 13,128,633,901 At the end of the year 15,009,502,917 14,001,420,200 Outward Reinsurance Commissions 36,512,407 34,947,940 Net income from allotted investments 1,477,084,877 1,378,528,687 Other income 13,086,799 13,733,550 Total income 2,707,879,899 2,324,225,401 Outgo Direct Paid Claims 1,795,507,391 1,694,660,266 Inward Reinsurance Claims 3,302,555 4,691,071 Gross claims Paid 1,798,809,946 1,699,351,337 Less reinsurance 106,875,922 82,789,824 Net claims 1,691,934,024 1,616,561,513 Change in the value of O/S Claims Reserve At the end of the year 144,756,930 176,359,671 At the beginning of the year 176,228,733 115,155,953 Direct commissions 67,307,924 56,421,071 Inward reinsurance commissions 435,654 281,490 acquisition costs 370,492,400 296,000,211 Total of commission and acquisition cost 438,235,978 352,702,772 General and Administration expenses 309,243,255 258,058,287 Provisions for allotted investments 220,578 198,497 Other provisions 1,006,659 - Total outgo 2,409,168,691 2,288,724,787 Profit (loss)of life insurance Activities 298,711,208 35,500,613

76 Annual Report 2013-2014 77 78 Contact Information

Head Office Address: 15. Kasr El Nile Street -Cairo Tel: (+202) 25753333 Fax: (+202) 25792570 Hotline: 19446 Website: www.misrlife.com E-mail: [email protected]

Cairo North & Middle of Upper Egypt Address: 15. Kasr El Nile Street -Cairo Address: Taha Husein Street – Tel: (+202) 25801037 Ard El Soltan-Minia Fax: (+202) 25769962 Tel: (+2093) 2336709 Fax: (+2086) 2336626

Alexandria South of Upper Egypt Address: 33. Nabi Daniel street-Alexandria Address: 64 Misr Insurance Building – Tel: (+203) 3902018 Asyout Road- Sohag Fax: (+203) 3936395 Tel: (+2093) 2310598 Fax: (+2093) 2326096 (+2093) 2323954

East of Delta Canal & Sinai Address: 8 El Gaish street- Mansoura Address: 1. El Belajat street. El Talatyny Tel: (+2050) 2311417 Tower -Ismailia Fax: (+2050) 2315099 Tel: (+206) 43920247 Fax: (+206) 43919034

Middle & West Delta Address: 255 El galaa Street- Tanta Tel: (+2040) 4426213 Fax: (+2040) 3326211

Annual Report 2013-2014 79 2014 2013

Annual Report Assets-Development-Management Board of Directors

Mr. Mohamed Hassan Hanafy Chairman & C.E.O. Eng. Fatheya Abdel Satar Shetewy Executive member for Technical Affairs

Mr. Abdel Wahab Abdel Moneem Abdel Wahab Executive member for Financial & Administrative Affairs

Dr. Shrief Arafat Otefa Non-Executive Member

Eng. Ahmed El Sayed Awad Staff Representative

Mr. Aly Abdel Rahman Abdel fattah Staff Representative

Eng. Akram Ismail Mohamed Staff Representative CHAIRMAN'S MESSAGE

We would like to thank all company’s staff and our kind customers and I would like express my deep appreciation of their real partnership in every single success we achieved. This success which the company has achieved is the fruit of the efforts exerted by the company’s management and staff throughout the last two years through establishing the culture of investment and new projects in addition to transforming the company from just an owner of old real estate properties to a specialized real estate company operating in all real estate activities and competing in the real estate market as one of the major companies specializing in such field. * We have already implemented and prepared a number of real estate projects including: Constructing a commercial administrative mall in El Tagamu El Khames – New Cairo on the area of 21000 SQM with an investment of LE 250 million. The first and second stages are already completed and currently we are completing the third stage (the project will be launched as a usufruct). Constructing a service complex in Al Sharq District in El Tagamu El Khames on the area of 9000 SQM with the cost of LE 12 million and it is planned to be completed within the current fiscal year. Minya Project: the project has a distinctive site in Sultan Area on the Nile Corniche in Minya City. The building permit was obtained . The project was initiated in action with the expected revenues of LE 85 million. Giza Project: It is deemed one of the largest administrative residential projects established on the area of 13300 SQM in El Haram Street. The Company has managed to put the cornerstone with the investment cost of LE 300 million and with the total of 250 residential units and 130 commercial units. It is planned to commence the project within the current fiscal year. The Company has completed the project of constructing 18 residential buildings in El Tagamu El Khames including 125 residential units with the expected revenues of LE 125 million (the project will be marketed as per the company’s plan and needs). The Company has also developed its headquarters in Cairo and Alexandria to fit theCompany’s name, kind customers and its future ambitions. Side by side with the Company’s different projects, the Company owns a number of real estate properties of a distinctive architectural style of which many are located in Khedivial Cairo. Such real estate properties are considered a national wealth for the generations to come and may not disposed of. Therefore, the Company has taken serious and effective steps to participate in the project which has been launched by the Prime Minister to develop the downtown Cairo through maintaining, reclaiming and developing such properties with the knowledge of the Arab Contractors under the patronage of The National Organization for Urban Harmony. In numbers, the Company achieved unique results since the total revenues of activities as of July 1, 2013 until the end of June 2014 (LE 270.72 million) for (LE 181.70 million) compared to the respective period with the growth rate of 49 %. Finally, I would like to express my deep appreciation gratitude to all kind customers , company’s staff and to Misr Insurance Holding Company, our partners in every success achieved by the Company.

Mohamed Hassan Hanafy

Chairman & C.E.O Company Profile

Historical Overview • Misr Real Estate Asset Company was established, as an affiliate to Misr Insurance Holding Company in 2007 and is governed by the public business sector companies’ law 203 of 1991 and its executive regulations. • The establishment of the company in order to manage and maintain the real estate portfolio of the insurance sector and third party in such a way that maintains them and maximize their values and returns, because the different nature activity from the main activity of the insurance companies.

Company in Brief: • The main purpose of the company is to manage, sell, rent, hire, construct and maintain all kinds of real estate and generally all types of investments in real estate assets. • The company owns about 680 properties of which 182 properties have distinct architectural character; thus the company is keen to ongoing maintenance to preserve their aesthetic and architectural value. • The total market value of the full real estate portfolio amounts to 8 billion Egyptian pounds. • It has a distinct stock of vacant lands in rare and distinct sites (15 vacant plots). • Working at the company a specialized and professional cadres in the real estate sphere which collect the long outstanding experiences in the sphere of real estate business from the four insurance companies as well as the specialized cadres in the real estate market, and consequently the company has included a selection of large experiences in the field of real estate management and maintenance the real estate field. as well as the legal aspects, notary public and documentation.

EGP Million

Key Financial Highlights 2012/2013 2013/2014

Paid up capital 500.0 500.0

Shareholders’ equity (including profit of the year) 721.9 791.4

Total Assets 842.0 969.6

Total Business Revenue 181.7 270.7

Net Profit 84.3 112.6 Vision : Reaching the optimal concept for real estate assets management. Achieving growth and profitability and maximizing return on investment. Maintaining the real estate properties with unique architectural value and maximizing the return on it as a national treasure.

Mission : The company seeks to manage and invest all kinds of real estate assets whether owned by the company or by third party; it also seeks to augment their value through sorting, classifying and raising their efficiency through application of the required maintenance programs. The company also aims at creating a better working environment for the employees and to provide the customers with the best possible service and to achieve the highest business results.

86 Company’s Projects Currently Being Marketed

Giza Residence Tower Misr Mall – Alexandria A residential administrative and residential administrative units commercial building - shopping center 44-46 Giza Street 55-57 Saad Zaghloul Street- Apartments, villas, administrative Alexandria and commercial units

Residental Building in Al Sharq District Project Al Tagamu Al Khamis Plot no 37 in Al Tagamu al khamis - New Cairo (opposite of the American University and next to Alzohour Club) an integrated servie area including a Mall, Cinema Compound, Mosque, Health unit and kindergarten is Under Construction Projects Currently Being Marketed in the Governorates

Damanhur Building The Three Buildings of Qena 24 Ahmed Orabi – Damanhur A-B-C El Shaheed Abdel Moneim Riad Square – Qena

Annual Report 2013-2014 87 Projects Under Implementation

Companys Projects in Al Sharq District Project Al tagamu Al Khamis - New Cairo:

Constructing a Commercial - Administrative Center and Cinema Compound Project : in front of the American University (on the area of 21000 SQM); The first and second stages are already completed At a Total Cost of EGP 250 million . ( the third stage is under completion )

Integrated Service Area Construction Project:

The service area comprises a mosque, celebration hall attached there to, a health unit and a kindergarten. Such buildings shall serve Al Sharq District Project so that the Project shall be complete.

88 Khedivial Cairo

It is an area which includes 421 buildings which date back to the second half of the nineteenth century and the first half of the twentieth century and is designed and implemented by the artists of the European Renaissance Era and it represents in whole and in its architectural style what is called the Khedivial Cairo.

The remaining buildings tell a story which its lines reveal that the Khedive Ismail (ruler of Egypt from 1863 to 1879) who was the representative of the Eastern intellectuals stream, wanted to make of Egypt a piece of Europe and of Cairo a part of Paris … So Khedival Cairo was Egyptian in terms of features and French in term of planning. It contained longer and wider streets connected through vast wonderful squares. In fact Khedivial Cairo can be considered a realistic model of Egypt’s culture 150 years ago and it is a witness on the idea of civilizing Egypt through transforming it according to the European way which was the idea that prevailed in the country throughout this historic stage. Khedivial Cairo buildings were designed by a selection of the greatest French and European architects such as the French designer “ Lasciac” who designed the khedivial properties in Emad Elddin street and the Engineer “Castaman” who designed the famous building in Talaat Harb Street which includes the famous restaurant and Café “Groppi” ,“ Marcel” the designer of the diplomatic club ,“ Matasak “ the designer of the Jewish temple “ Hachamaim Logo” at Adly street, downtown which is the largest and most exquisite synagogue in Egypt and “Mario Rossi” the designer of Omar Makram Mosque in Tahrir Square and the Egyptian architects also played an important role such as Eng. Mostafa Fahmy the designer of the Engineering Association building in Ramses street and Abu Bakr Khairet the designer of Air France building in addition to Sayyed Karim, Mohamed Sherif Nomaan, Ali Labib Gabr and others which were the masters of the modern Egyptian architecture. The architectural heritage of Khedivial Egypt downtown is considered a unique architectural value due to the Cairo- Parisian architectural mixture and a new architectural style was introduced which had a nature radically different from that of Fatimid, Mamluk and Ottoman Cairo which is “ historic Egypt” mainly representing the successive connected stages of the Eastern and Islamic architectural styles so that the character of Khedivial Egypt has become a mixture of many classic and new European styles inlaid with basic features of the Eastern architecture so that all of this put together provides it with unmatched richness.

Annual Report 2013-2014 89 The Company’s Efforts Exerted to Maintain Khedivial Cairo Misr Real Estate Assets Company affiliated to Misr Insurance Holding Company possesses more than 140 properties downtown 68 of which have a “distinguished architectural character”, its construction dates back to the second half of the nineteenth century and the first half of the twentieth century and it combines the classical style with that of the renaissance era, it is also characterized by mixing the European architecture with the eastern one. For maintaining and preserving the distinguished architectural character of the area and the value of these properties, Misr Insurance Holding Company has been keen on maintaining and preserving all buildings which own in the area and especially the ones with distinguished architectural character and has given its directives to prevent the disposition of any property in the area and it has resolved to conduct a comprehensive review of these properties and the constructions , facilities and services they need and to remove all existing distortions as well as all the development works required to ensure maintaining and preserving the distinguished architectural pattern through the following: Firstly: Developing A Mechanism Inside Misr Real Estate Assets Company To Maintain Them and Augmenting Their Value: Whereas the Company established a general specialized department for the buildings which have distinguished architectural value and the sole task of this department is to maintain and preserve these properties as well as augmenting their value through inspection of real estates, classifying them, preparing engineering reports, estimations and implementing works; studying and implementing repairing decisions; studying how to use the vacant plots of lands included in such real estates . and Implementing the reclaiming and maintenance works required for the real estate properties as soon as possible to maintain the value of such real estate properties. Secondly : Cooperation and participation with Cairo Governorate and the National Organization for Urban Harmony to Maintain this Real Estate Wealth by the board of trustees in Khedivial Cairo area: There is an agreement that Cairo governorate has initially prepared two projects for the restoration of properties in Khedivial Cairo area, they are as follows: The first project: Restoring and painting the front of the buildings in Ramses street (The Project was completed ) . The Second Project: Developing Khedivial Cairo comprehensively and all surrounded streets and garnishment the footpaths and squares (the Project was prepared and the execution procedures are commenced). In addition to the Company’s contribution in Developing Khedival Cairo Area in downtown Cairo: 1-Developing and reclaiming the property NO 14 Talaat HARB Street – 15 Kasr Al Nile Street comprehensively including its engineering aspects. 2-Contribute with the Cairo Government to develop and renew the properties in Tahrir Square (being completed currently) for revealing the historical and cultural value of the square properties in addition to the aesthetics of the square. Due to the fact that the government body cannot do all the job of promoting this area alone so the Insurance Holding Company and Misr Real Estate Assets together with a number of important entities inside the community including banks and institutions working in the field of banking and finance have also participated in the project aiming at restoring Khedivial Cairo to its early states. Thus, a board of trustees was formed on 26/1/2008 presided by the Governor of Cairo with the membership of a number of banks’ chairmen, the Governor of the Central Bank of Egypt,( Misr Insurance Holding Company and the Misr Real Estate Assets Company) and the national organization for urban harmony. The board aims at providing the necessary funds therefore a bank account was opened to serve this purpose, the board also aims at supervising and overseeing the development works that shall be conducted in the area and which can contribute in developing and promoting the area and renovating the historic buildings which have a distinguished architectural character in order to raise the aesthetic value of the downtown area (Khedivial Cairo) and thus it shall be transformed into a tourist attraction and urban area without prejudice to the historic structure of the place. From the above it becomes clear that there are concerted efforts and cooperation between Misr Real Estate Assets Company and Cairo Governorate, institutions and organizations in such area to maintain and preserve it as well as restoring its aesthetic value and that is because all of us are partners in maintaining and preserving this heritage treasure which we should protect and develop for the coming generations .

90 The Main Financial Indicators For the Fiscal Year 2013/2014

The most significant indicators of the company for the fiscal year 2013/2014 compared to the year 2012/2013

EGP 000’s Actual Actual Statement Growth Rate 2012/2013 2013/2014 Business revenue 181.704 270.728 49.0% Cost of Business revenue 61.424 90.792 47.8% Gross Profit 120.280 179.936 49.6% Other income 33.671 28.503 )15.3(% Other expenses 41.176 57.115 38.7% Tax on profits 28.477 38.747 36.1% Net Profit 84.298 112.577 33.5%

Total Revenues EG.P 000’s EG.P 000’s 120000 300000 • The total revenues for the year 2013/2014112577 amounted to be EGP 270728 270.7 million compared to EGP 181.7 million in the financial100000 year 250000 84298 181704 2012/2013 with growth ratio of 49.0%. 80000 200000

60000 150000

40000 100000

20000 50000

0 0 2013/2014 2012/2013 2013/2014 2012/2013

Net Profit: EG.P 000’s EG.P 000’s 120000 300000 112577 • the company’s net profits for the year 2013/2014 amounted to 270728 100000 250000 EGP 112.6 million compared to EGP 84.3 million in the financial 84298 181704 80000 200000 year 2012/2013 with growth ratio of 33.5%. 60000 150000

40000 100000

20000 50000

0 0 2013/2014 2012/2013 2013/2014 2012/2013

Shareholders’ Equity Shareholders’ equity amounted to EGP 791.435 million at 30/6/2014, which represents 81.63% of TotalAssets of EGP 969.584 million taking in consideration the suggested profit distribution.

Annual Report 2013-2014 91 Misr Real Estate Assets Co. Financial statement for the fiscal year Ended on 30/6/2014 Balance Sheet

Wholly Partially Cost Statement 30/6/2013 EGP EGP EGP EGP Long Term Assets Accumulated Net Cost Fixed Assets Depreciation

861,248 342,591 1,203,839 Buildings and Construction 950,118 1,094,660 1,359,367 2,454,027 Means of Transport 1,283,016 3,571,003 3,855,091 7,426,094 Furniture and Office Equipment 3,430,252

Projects In Progress 4,874,731 Investment expenditure 360,311 Long Term Investments 400,498,255 57,016,117 457,514,372 Real Estate Investments 406,166,762 375,000 Investments in Shares in Other Companies 375,000 879,450 Investments in Investment Funds 860,926 75,050 319,950 395,000 Other Investments (chassis) 146,150 Intangible assets (net) 484,545 493,668 978,213 licenses of software 38,202 Long Term Loans & Debit Balances 11,456,560 Deferred Tax Assets 8,277,494 424,170,502 Total Long Term Assets (1) 421,888,231 Current Assets 191,875 Materials Stock 147,850 82,105,123 Unfinished Products Stock 51,179,466 47,493,746 Finished Products Stock 61,211,618 Customers, Notes Receivables & Debit

Balances Customers & Notes Receivables ( after deducting 243,612,759 56,691,915 300,304,674 149,695,924 the provision amounting to EGP 56691915) Debit Balances at the Holding/affiliated and 25,312,350 6,232,480 Sister Companies 1,851,802 Accrued Revenues 851,191 7,590,214 Prepaid Expenses 4,441,159 Other Debit Accounts ( after deducting the 76,435,366 2,708,904 79,144,270 73,940,878 provision amounting to EGP 2708904) Investments and Current Securities 6,680,237 Treasury Bills 26,937,925 Cash in Hand and at Bank 51,395,427 Term or Prior Notice Bank Deposits 41,559,623 2,744,976 Current Accounts at Banks 3,935,643 Cash in Hand 545,413,875 Total Current Assets 420,133,757 92 Wholly Partially Cost Statement 30/6/2013 Current Liabilities Provisions 636,848 Other Provisions 3,636,848 Creditor Banks 2,945,635 Current Accounts at Banks 3,181,989 Suppliers, Notes Payable & Credit Accounts Accounts Payable to Holding, Affiliated and Sister 25,003,601 5,813,452 Companies 43,440,067 Accounts Payable to Organizations and Agencies 31,175,238 Dividend Creditors 43٫611٫533 - 3,354,488 Accrued Expenses 4,992,637 481,811 Deferred Income 448,924 Future Installment Sales Profit ( Related to Later 30,411,187 13,550,727 Years) 71,875,507 Other Credit Accounts 56,752,505 Total Current Liabilities 163٫163٫853 178,149,144 Working Capital (2) 256٫969٫904 367,264,731 Total Investment ( 1+2) and is financed as follows: 678٫858٫135 791,435,233 Shareholders Equity 500,000,000 Paid up Capital 500,000,000 Reserves Legal Reserve 98٫997٫057 98,997,057 Statutory Reserve 79٫861٫078 79,861,078 112,577,098 Net Profit ( loss) for the Year

Total Shareholders’ Equity (3) 678٫858٫135 791,435,233 Long Term Liabilities Long term loans from holding/affiliated and sister - - companies - Total Long Term Liabilities (4) -

791,435,233 Total Investment Financing (3+4) 678,858,135

Annual Report 2013-2014 93 The Income Statement for the Fiscal Period from 1/7/2013 to 30/6/2014 From 1-7-2013 The Statement From 1-7-2012 To 30-6-2014 To 30-6-2013 Business Revenue 167,422,818 Net Sales of Finished Products 77,195,015 Net Sales of Purchased Goods 4,159,400 Installment Sales Profits for the Year 2,672,461 83,285,206 Sold Services 79,172,011 9,500,000 Third Party Operating Income 9,500,000 6,360,106 Other Business Revenues 13,164,497 less 84,271,992 Cost of producing or purchasing the sold units 56,127,839 6,520,217 Marketing Costs 5,296,002 90,792,209 Business Revenue Costs 61,423,841 179,935,321 Gross Profit ( Loss) 120,280,143 Plus Investment Revenues 1,858,546 Other financial investment Revenues 3,483,253 Other Revenues & Profits Provisions no longer Required ( other than the provisions for the - 3,000,000 Drop in the Stock Prices) 9,921,458 Miscellaneous Revenues & Profits 15,530,783- Less 27,028,055 Administrative Expenses 27,553,185 Cut Salaries and Attendance and Transport Allowances for The 1,806,423 1,444,783 Board Members Burdens & Losses 19,140,014 Provisions( other than amortization) 4,335,939 - Miscellaneous Burdens & Losses - 147,102,473 Net Business Profits ( Losses) 105,598,632 2,018,517 Interest payable 3,422,876 149,120,990 Net Profit (loss) for the activity 109,021,508 Plus 208,310 Profit of Exchange Rate Differences 593,288 11,481,839 Revenues of the previous year 10,628,465 14,087 Capital gains 12,271 Plus (less) 74,430 loss of Exchange Rate Differences 55,728 9,427,150 Expenses of the previous year 7,269,777 - Capital losses 154,755 151,323,646 Pre-income tax net profit ( loss) 112,775,272 3,179,066 Deferred income tax 864,165 41,925,614 Income Tax 29,341,467 112,577,098 Net Profit (loss) 84,297,970

94 Contact Us: Head Office: 3 Abu El Feda St. –Zamalek– Cairo Tel. 02/27376320 - Fax-02/27376317 Hot Line 16323 Website: www. misrrea.com Down Town Office Canal Office 5 – 26 July Street – Cairo Down Town Port Said – El Golf Land- El Iman & Taqwa Telephone: 02/25933917 Street – Tower 3 Tel. 066/3723086 Fax: 02/25934018 Fax: 066/3722486

Alexandria Office Delta Office 33 Saad Zaghloul Street- El Raml Station Tanta- 255 el Galaa Street- Misr Insurance Building Tel: 03/4877536 Tel: 040/3274008 Fax: 03/4870379 Fax: 040/3303590

Upper Egypt Office El Menia- Misr Insurance Tower Taha Hussein Street in front of Cleopatra Hotel Tel/Fax: 086/2316640

Annual Report 2013-2014 95 2013

2014 Annual Report Invest In Excellence Board of Directors

Mr. Hassan El-Shafei Abdel-Hamid Chairman & CEO Mr. Hisham Mohsen Ahmed Non-Executive Member (representing Misr Insurance) Head of Audit Committee

Mr. Tarek Farid Mansour Specialized Member Head Of investment Committee

Dr.Hussein Atta Ghoneim Specialized Member Member of Investment Committee

Mr. Ahmed Refaat Sayed Non-Executive Member (representing misr life insurance Co) Member of Audit Committee

Mr. Mostafa Ahmed Abdel-Wareth Non-Executive Member(representing Misr Insurance Holding Co) Member of Audit Committee

Mrs. Ebtsam Mahmoud Aly 98 Non-Executive Member (representing Misr Insurance Holding Co) CHAIRMAN'S MESSAGE

Despite the turbulence on the markets that were affected by economic and political events locally and worldwide, 2013/2014 was a good year on the whole for our company. On the local scene, the Egyptian stock market continued to suffer from the recession caused by the events of the previous years and witnessed a lot of volatility. During the year, we expanded into a new area of business by offering investment advisory services. From October 2013 to December 2013, we advised the Ministry of Investment on the preparation of a portfolio of 80 projects, out of a total portfolio of 480 projects that were presented to qualified investors at the Egypt – Gulf Cooperation Countries (GCC) investment forum that was held in Cairo on December 4th and 5th, 2013. We continue to date in our role as advisors to the Ministry of Investment. On the portfolio management side, our portfolios continued to outperform the EGX 30 and 70 indices during the year. On the fund management side, we continued to seek targets for acquisition for the EGP 455 million private equity fund ‘Misr Fund for Investment and Finance’. We continued to assess companies belonging to Misr Insurance Holding Company’s EGP 5.8 billion private equity portfolio, targeting favorable returns and maximizing shareholder value.

I would like to thank the H.E. the Minister, the Assistant Minister and the staff at the Ministry of Investment and the General Authority for Free Zones and Investments (GAFI) for their continuous support and assistance. I would also like to thank our shareholders and first and foremost the Chairman and board of Misr Insurance Holding Co. Warm thanks also go the board of Misr Fund for Investment and Finance. Finally, I wish to thank our staff members, present and past, for their efforts, without which we would not have been able to achieve these excellent results for the third consecutive year.

Hassan El-Shafei Abdel-Hamid

Chairman & CEO

Annual Report 2013-2014 99 Company Profile • Misr Asset Management (MAM) is a joint stock company, established in May 2009 according to capital market law number 95 for the year 1992, Misr Insurance Holding Company and its subsidiaries own MAM’s paid-up capital. • MAM provides investment banking services such as Fund Management, Investment Advisory, Portfolio Management, Private equity and provides investment advice to the group of Misr Insurance Holding companies and their customers. • MAM’s investment advisory team handles the investment bank, advisory services and strategy management for the public-owned stakes in private companies and other private sector clients. • MAM provides a wide range of corporate advisory services such as mergers and acquisitions, divestitures, leveraged and management buyouts, valuation and financial and corporate restructuring. Raising equity and debt are also services offered by the company.

Company in Brief: - Misr Asset Management was established in May 2009 as a joint stock company. - The paid-up capital is EGP 11 million, Misr Insurance Holding Company and its subsidiaries own MAM’s paid-up capital. - The company provides investment banking services such as Fund Management, Investment Advisory, Portfolio Management and Private Equity.

EGP Million

Key Financial Highlights 2012/2013 2013/2014

Paid up capital 11.0 11.0

Shareholders’ equity(*) 15.5 14.5

Total Assets 16.6 15.4

Total Business Revenue 15.5 14.5

Net Profit 3.7 2.5

* Includes Profit before Distribution.

100 Vision: To become the leading asset manager of the government- owned sector in Egypt.

To become the leading asset manager in Egypt and the Middle East.

Mission: Providing top class investment banking services to our clients, and maximizing returns to our shareholders by leveraging on the quality of our investment professionals.

Adopting best business practices and applying the highest ethical standards and corporate governance.

Annual Report 2013-2014 101 Main Financial Indicators

The most significant indicators of the company for the fiscal year 2013/2014 compared to the year 2012/2013

EGP 000’s Actual Actual Statement Growth Rate 2012/2013 2013/2014 Total Revenue 8.20 6.11 (25.5%) Total Expenses 4.41 3.60 (18.2%) Shareholders’ Equity 15.54 14.48 (6.9%) Investment Rate of Return 24% 17% )92.1%) Net Profit 3.77 2.51 (33.6%)

EGP Million EGPEGP Million Million EGP Million 4.0 104.0 10 3.772 3.772 Total Revenue 3.5 8.199 3.5 8.199 8 8 The total revenues for the year 2013/2014 amounted3.0 to be 3.0 2.505 6.105 2.5 2.505 6.105 EGP 6.109 million compared to EGP 8.199 million in the 62.5 6 2.0 2.0 financial year 2012/2013 with a decrease ratio of (25.5%). 4 1.5 1.5 4 1.0 1.0 2 2 0.5 0.5 0.0 00.0 0 2014/2013 2013/2012 20142014//20132013 20132013//20122012 2014/2013 2013/2012

The Investment return rate The company’s Investment return rate in 2013/2014 was

17% against 24% in 2012/2013. EGP Million EGP Million 24% 24% 25 25

20 20 17% 17%

15 15

10 10

Shareholders’ Equity 5 5

Shareholders’ equity amounted to EGP 14.457 million0 at 0 2014/2013 2013/2012 2014/2013 2013/2012 30/6/2014 which represents 93.7% of total assets which amounted to EGP 15.421 million

EGP Million EGP Million 4.0 10 3.772 3.5 8.199 8 Net Profit 3.0 2.505 6.105 The company’s net profits for the year 2013/2014 amounted 2.5 6 2.0 to EGP 2.505 million compared to EGP 3.772 million in the 1.5 4 financial year 2012/2013 with decrease ratio of (33.6%). 1.0 2 0.5 0.0 0 2014/2013 2013/2012 2014/2013 2013/2012

102

EGP Million 24% 25

20 17%

0 2014/2013 2013/2012 Misr Asset Management financial statements for the fiscal year ending at 30/6/2014 Balance Sheet 30/06/2014 30/06/2013 Term EGP EGP Long Term Assets Fixed Assets 94,894 171,040 Intangible Assets 2,595 17,793 Total Long Term Assets 97,489 188,833 Current Assets Cash 3,608,066 541,525 Financial investments at fair value 9,314,925 13,406,517 Debtors & other debit balances 2,372,815 2,447,447 Debt Balances at the related parties 28,518 20,246 Total Current Assets 15,324,324 16,415,735 Current Liabilities Creditors & other credit balances 201,535 188,506 Provisions 21,499 21,499 Owed to the Tax Authority 736,135 838,118 Credit Balances at the related parties 2,581 6,782 Total current Liabilities 961,750 1,054,905 Working Capital 14,362,574 15,360,830 Total Investment 14,460,063 15,549,663 Shareholders Equity Paid-Up Capital 11,000,000 11,000,000 Legal Reserve 652,058 463,456 Retained Profit 300,000 300,000 Profit for the year 2,505,795 3,772,046 Total Shareholders Equity 14,457,853 15,535,502 Long Term Liabilities Deferred tax liabilities 2,210 14,161 Total Long Term Liabilities 2,210 14,161 Total Investment Financing 14,460,063 15,549,663

Annual Report 2013-2014 103 Statement of Income

2014/6/30 2013/6/30 Term EGP EGP Revenue of Activity Commissions of investment funds and portfolio management 372,680 371,666 Fees of financial investments management 4,584,953 6,450,332 Total Revenue 4,957,633 6,821,998 General and administrative expenses (2,879,446) (3,577,594) Provisions - (21,499) Profits of financial investments reevaluation at fair value 989,644 1,345,208 Net Business Profits ( losses) 3,067,831 4,568,113 Revenue funding 162,149 32,163 Pre-income tax profit 3,229,980 4,600,276 Income taxes (736,135) (838,118) (Expenses) Deferred tax 11,951 9,888 Net Profit ( loss) 2,505,796 3,772,046

Contact Us: Misr Asset Management Misr Insurance Tower – 2nd floor 7, Talaat Harb Street 11511 Cairo Egypt Tel: +20 2 2399 3948 Fax: +20 2 2391 8692 Email: [email protected]

104 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