2013 Annual Report a Trusted Partner

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2013 Annual Report a Trusted Partner 2013 annual report A Trusted Partner For over forty (40) years, the MNRB Group has made its mark as the National Reinsurer and has continued to evolve into being a trusted partner to financial industries. Over these years, the group has grown and today encompasses the reinsurance, takaful and retakaful businesses. We have also moved beyond Malaysian shores to other parts of Asia as well as the Middle East and Africa and are set to further extend our international footprint as a leading risk solutions provider. As we venture forth, we will continue to leverage on our robust financial standing, astute business strategies and strong partnerships to leave an imprint and create a sustainable future for the Group and its stakeholders. Contents MNRB HOLDINGS BERHAD MALAYSIAN REINSURANCE MNRB RETAKAFUL BERHAD BERHAD 004 Corporate Profile 100 Corporate Profile 005 Corporate Milestones 070 Corporate Profile 101 Corporate Information th 010 Notice of 40 071 Corporate Information 102 Directors’ Profile Annual General Meeting 072 Directors’ Profile 105 Shariah Committee 012 Statement Accompanying 076 Senior Management Team Members’ Profile Notice of Annual General Meeting 078 Senior Management Team’s Profile 108 President & 013 Corporate Information 079 Corporate Activities and Services Chief Executive Officer's Profile 014 Board of Directors 081 Malaysian Re’s Portfolio of Business 109 MRT’s Portfolio of Business 016 Directors’ Profile 020 Senior Management Team MALAYSIAN RE (DUBAI) LTD. 022 Senior Management Team’s Profile TAKAFUL IKHLAS SDN. BHD. 025 Group Structure 112 Corporate Profile 026 Chairman’s Statement 084 Corporate Profile 113 Corporate Information 036 Corporate Social Responsibility 085 Corporate Information 114 Directors’ Profile 046 Statement on 086 Directors’ Profile 115 Senior Executive Officer's Profile Corporate Governance 090 Shariah Committee 058 Audit Committee Report Members’ Profile 060 Statement on Risk Management 092 Senior Management Team MMIP SERVICES SDN. BHD. and Internal Control 094 Senior Management Team’s Profile 063 Statement of 096 Takaful IKHLAS’ Portfolio of Business 116 Corporate Profile Directors’ Responsibility in 117 Corporate Information Relation to the Financial Statements 064 Five-Year Financial Highlights 065 Financial Calendar 066 MNRB’s Growth 067 Investors’ Information 118 Calendar of Significant Events 122 Financial Statements 280 Additional Compliance Information 281 Analysis of Shareholdings 285 List of Properties • Proxy Form • Complaint Form of Bursa Malaysia MMIP SERVICE S SDN . BH D. MM IP S ER VI CE S SD RETAKAFUL BERHAD MNRB R N. MNRB ETAKAF B UL BE HD RHAD . MN M RB M RET IP AK S AFU E L B R ER V SDN. BHD. TAKAFUL IKHLA HA IC AFUL IKHLAS S SDN. BHD. T D E TAK AKAFUL IK M S HLAS SD NR S N. BHD B D . TAK N AFUL . IKHLA S B N R SIA N AY M AL M S D HA G ER N E B I NC D URA L INS O RE H IAN YS B ALA D M R RHA N BE M E NC SURA REIN D AN A ALAYSI ERHAD M H SURANCE B R MALAYSIAN REIN E B S G IN D L O H B R N M D A H R E B S G IN D L O H B R N M AD H ER B N S A G I IN S LD Y O A H L B NR A M M D HA . R D BE S T G L IN D ) OL I H A RB MN B D U RHA BE D GS ( HOLDIN MNRB E R N A I S Y A L A M . D T L I) A B U D ( E R N IA S AY AL M . TD I) L BA DU E ( N R YSIA MALA for the Group’s long-term growth. long-term Group’s the for our reach and explore new areas of opportunity opportunity of areas new explore and reach our established have given us the impetus to spread spread to impetus the us given have established nurtured and strong market positions we have have we positions market strong and nurtured operate in. The enduring partnerships we have have we partnerships enduring The in. operate reinforced its reputation in the many markets we markets many the in reputation its reinforced turning in a solid performance, MNRB has MNRB performance, solid a in turning By steadfastly delivering on our promises and promises our on delivering steadfastly By BY OUR PARTNERS OUR BY TRUSTED MMIP SERVICE S SDN . BH D. MM IP S ER VI CE S SD RETAKAFUL BERHAD MNRB R N. MNRB ETAKAF B UL BE HD RHAD . MN M RB M RET IP AK S AFU E L B R ER V SDN. BHD. TAKAFUL IKHLA HA IC AFUL IKHLAS S SDN. BHD. T D E TAK AKAFUL IK M S HLAS SD NR S N. BHD B D . TAK N AFUL . IKHLA S B N R SIA N AY M AL M S D HA G ER N E B I NC D URA L INS O RE H IAN YS B ALA D M R RHA N BE M E NC SURA REIN D AN A ALAYSI ERHAD M H SURANCE B R MALAYSIAN REIN E B S G IN D L O H B R N M D A H R E B S G IN D L O H B R N M AD H ER B N S A G I IN S LD Y O A H L B NR A M M D HA . R D BE S T G L IN D ) OL I H A RB MN B D U RHA BE D GS ( HOLDIN MNRB E R N A I S Y A L A M . D T L I) A B U D ( E R N IA S AY AL M . TD I) L BA DU E ( N R YSIA MALA 004 ANNUAL report 2013 CORPORATE PROFILE In early 1965, the Malaysian Government conceived the idea of forming a national reinsurance company in order to curtail the ever-increasing outflow of reinsurance premiums overseas. A feasibility study on the formation of such a company was undertaken in 1971 and on 30 December 1972, Malaysian National Reinsurance Berhad was incorporated under the Companies Act, 1965, with the company commencing operations on 19 February 1973. Effective 1 April 2005, as part of the restructuring exercise of the MNRB Group, the reinsurance business, reinsurance license and reinsurance assets, up to a net amount of RM400 million, were transferred from Malaysian National Reinsurance Berhad to Malaysian Reinsurance Berhad (Malaysian Re). Pursuant to the restructuring, Malaysian National Reinsurance Berhad became an investment holding company and was renamed MNRB Holdings Berhad (MNRB). Today, MNRB’s wholly owned subsidiaries are Malaysian Re, a general reinsurance company, Takaful Ikhlas Sdn. Bhd. (Takaful IKHLAS), a takaful operator, as well as MNRB Retakaful Berhad (MRT), a general and family retakaful operator. Subsidiary Malaysian Re (Dubai) Ltd. (MRDL), was incorporated in Dubai in the United Arab Emirates, to underwrite the reinsurance business for Malaysian Re and to service Malaysian Re’s business partners in the Middle East and North Africa (MENA) region. Another subsidiary company, MMIP Services Sdn. Bhd. (MSSB), is the manager of the Malaysian Motor Insurance Pool (MMIP), a pool established by the local insurance industry to provide insurance coverage for vehicle owners who have difficulty in obtaining motor insurance coverage. In addition, Motordata Research Consortium Sdn. Bhd. (MRC), a company that manages a database of standard motor parts, prices and repairs, is an associate company of MNRB, whilst Labuan Reinsurance (L) Ltd. (Labuan Re), an offshore reinsurance company incorporated in the Labuan International Offshore Financial Centre (IOFC), is an associate company of Malaysian Re. Backed by a wealth of experience and knowledge in the reinsurance, takaful and retakaful businesses, a sound financial position plus strong support from its substantial shareholders, namely, Permodalan Nasional Berhad (PNB) and the various unit trust schemes of PNB, the MNRB Group continues to grow as a renowned corporation, both locally and internationally. CAPITAL STRUCTURE The Company has an Authorised Capital of RM500 million, divided into 500 million ordinary shares of RM1.00 each and a Paid-up Capital of RM213 million, divided into 213 million ordinary shares of RM1.00 each. MNRB HOLDINGS BERHAD 005 CORPORATE MILESTONES 1973 - 1975 1982 - 1984 Malaysian National Reinsurance Berhad commenced Paid-up capital increased to RM8,216,004. operations on 19 February 1973. Published the 1st edition of the Malaysian Insurance Voluntary Cessions (VC) to Malaysian National Reinsurance Directory. Berhad commenced four (4) months later. Introduced Common Account Excess of Loss for Began to offer Excess of Loss Treaties to local insurance retrocessionaires. companies. Began to write Local Facultative business and non- reciprocal inwards overseas business. 1985 - 1987 Formation of the following: • Technical Services Department 1976 - 1978 – To conduct fire surveys including advisory services on risk management with the cost mostly Retroceded part of the VC cessions to the local insurance borne by Malaysian National Reinsurance Berhad. companies for their net account. • Inspection Department Sponsored the 1st Kuala Lumpur Insurance Seminar, – To ensure companies’adherence to the various attended by over four hundred (400) delegates. Inter-Company Agreements. Commenced writing ten percent (10%) Quota Share of • Rating Committee the Miscellaneous Accidents and Motor businesses. – To determine special rate under the Fire Tariff for Fire and Industrial All Risks Insurances. Increased level of retrocessions from twenty-five percent (25%) to thirty percent (30%) for Fire and Personal Accident businesses. 1988 - 1990 Increased level of retrocession from fifty percent (50%) to fifty-five percent (55%) to shareholding companies of 1979 - 1981 Malaysian National Reinsurance Berhad.
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