Chairman's Statement & Review of the Business

 

In 2008 our Gross Premium was £10,866,263 compared to £7,515,981 in 2007.  The composition of this premium is 45% Algerian business, 20% Libyan business and 35% Afro-Asian business (2007 39% Algerian business, 19% Libyan business and 42% Afro-Asian business).  The loss on our Profit and Loss Technical Account is £2,528,439 (2007 £1,366,648).  The loss for 2008 as shown in our Profit and Loss Non Technical Account is £906,980 (2007 £927,345).  We have in 2008 as in 2007 accepted business from sixteen Libyan and Algerian companies.  With regard to our reserving process we continue to review our position regularly and remain confident our methods are consistent with best practice and procedure.

Shareholders' funds now stand at £18,556,109 (2007 £19,463,089).

In my previous statement I referred to discussions which had been held with our shareholders which envisaged additional capital being received during 2008.  Agreement was reached in principle with new Algerian and Libyan shareholders to increase the paid up share capital to £40,000,000.  To facilitate this process the Authorised Share Capital was increased to £75,000,000 in October 2008.  However after further review by the potential Libyan investors and their taking into account the global economic position they have decided not to increase their investment in the Company.  The Algerian parties therefore have to decide in the light of the Libyan decision whether they are going to invest in the Company.  Nevertheless, both the Algerian and Libyan governments are having discussions in order that a final decision can be reached.

Finally I should like to express my sincere thanks to the Company’s employees for their continued efforts throughout the year.

 

A BELBAY

25th March 2009