S. SHLOMO INSURANCE COMPANY LTD FINANCIAL STATEMENTS AS AT DECEMBER 31, 2011

Transcription

1 Translated from the Hebrew original S. SHLOMO INSURANCE COMPANY LTD FINANCIAL STATEMENTS AS AT DECEMBER 31, 2011

2 S. SHLOMO INSURANCE COMPANY LTD FINANCIAL STATEMENTS AS AT DECEMBER 31, 2011 INDEX Page Accompanying Letter to the Financial Statements 2 Statements of the Financial Position 3 4 Statements of Comprehensive Income 5 Statements of Changes in Equity 6 Statements of Cash Flows 7 8

3 Kost Forer Gabbay & Kasierer 3 Aminadav St. TelAviv 67067, Israel Tel: 972 (3) Fax: 972 (3) S. Shlomo Insurance Company Ltd. Dear Sirs, We have audited, in accordance with International Financial Reporting Standards (IFRS) and in accordance with the disclosure requirements as prescribed by the Regulator of Insurance pursuant to the Supervision of Financial Services (Insurance) Law, 1981, the statements of financial position of S. Shlomo Insurance Company Ltd. as of December 31, 2011 and 2010, and the related statements of comprehensive income, statements of changes in equity and statements of cash flows, for each of the years ended as at December 31, 2011, 2010 and 2009, and in our report dated March 22, 2012, we expressed an unqualified opinion on those financial statements. The accompanying financial statements are condensed financial statements and do not include the disclosures required by International Financial Reporting Standards. If the omitted disclosures were included in the financial statements, they might influence the user's conclusions about the financial position and the results of operations of the Company. TelAviv, Israel April 16, 2012 KOST FORER GABBAY & KASIERER A Member of Ernst & Young Global 2

4 STATEMENTS OF THE FINANCIAL POSITION ASSETS As at December Intangible assets 8,406 5,790 Deferred tax assets 10,380 7,518 Deferred acquisition costs in general insurance 21,671 21,137 Fixed assets 4,234 1,665 Reinsurance assets 357,829 28,202 Current tax assets 8,435 8,830 Debtors and receivables 14,935 17,427 Outstanding premiums 35,327 37,705 FINANCIAL INVESTMENTS Quoted debt instruments 408, ,148 Unquoted debt instruments 35,819 36,394 Shares 20,648 24,373 Others 30,115 18,369 Total financial investments 495, ,284 Cash and cash equivalents 170,620 86,221 Total assets 1,127, ,779 3

5 STATEMENTS OF THE FINANCIAL POSITION (Cont.) S. SHLOMO INSURANCE COMPANY LTD. CAPITAL AND LIABILITIES As at December CAPITAL Share capital 13,300 9,500 Share premium 119,700 85,500 Surplus (48,980) (41,717) Total capital 84,020 53,283 LIABILITIES Liabilities in respect of insurance contracts 638, ,032 Liabilities for benefits to employees, net 1,511 1,563 Reinsurers deposits 269, Creditors and payables 71,207 62,791 Financial liabilities 63,051 29,204 Total liabilities 1,043, ,496 Total capital and liabilities 1,127, ,779 4

6 STATEMENTS OF COMPREHENSIVE INCOME Year ended December Gross premiums earned 375, , ,408 Premiums earned by reinsurers 365,304 13,842 11,927 Premiums earned on retention 9, , ,481 Net investment income and finance income 2,521 22,076 15,103 Income from commissions Other income ,946 Total income 13, , ,626 Payments and change in liabilities in respect of insurance contracts, gross 314, , ,755 Reinsurers share in payments and in change in liabilities in respect of insurance contracts 378,353 12,214 15,994 Payments and change in liabilities in respect of insurance contracts on retention ( 63,767) 284, ,761 Commission, marketing and other acquisition expenses 60,602 54,132 36,287 Administrative and general expenses 9,691 8,075 7,078 Other expenses 38 1, Finance expenses 16,989 2, Total expenses 23, , ,084 Loss before taxes on income ( 10,125) ( 14,580) (15,458) Tax benefit 2,862 2,904 3,241 Loss ( 7,263) ( 11,676) (12,217) Other comprehensive income (loss): Net change in the fair value of financial assets classified as available for sale 5,779 Net change in the fair value of financial assets classified as available for sale and transferred to the statement of profit and loss (7,896) Taxes on income that refer to components of comprehensive income 737 Other comprehensive loss, net (1,380) Total comprehensive loss ( 7,263) ( 11,676) (13,597) Loss per share Basic loss per share (in NIS) (0.064) (0.138) (0.168) 5

7 STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY Capital reserve from available Receipts for sale Share Share on account financial Retained Total capital premium of shares assets earnings capital Balance as at January 1, ,200 64,800 1,054 ( 17,498) 55,556 Issue of share capital 500 4,500 5,000 Receipts on account of shares 6,500 6,500 Total comprehensive loss ( 1,380) ( 12,217) (13,597) Balance as at December 31, ,700 69,300 6,500 ( 326) ( 29,715) 53,459 Issue of share capital 1,800 16,200 ( 6,500) 11,500 Initial implementation of IFRS ( 326) Total comprehensive loss ( 11,676) (11,676) Balance as at December 31, ,500 85,500 ( 41,717) 53,283 Issue of share capital 3,800 34,200 38,000 Total comprehensive loss ( 7,263) (7,263) Balance as at December 31, , ,700 ( 48,980) 84,020 6

8 STATEMENTS OF CASH FLOWS Year ended as at December CASH FLOWS FROM CURRENT ACTIVITIES (a) 20,740 ( 57,771) 62,913 CASH FLOWS FROM INVESTMENT ACTIVITIES Investment in fixed assets ( 3,320) ( 364) (299) Proceeds from the sale of fixed assets 2 Investment in intangible assets ( 4,318) ( 2,017) (3,062) Net cash used in investment activities ( 7,638) ( 2,381) (3,359) CASH FLOWS FROM FINANCE ACTIVITIES Proceeds from the issue of subordinated deeds net of issue expenses 32,700 Proceeds from issue of share capital 38,000 Proceeds from receipts on account of shares Net cash provided by finance activities 70,700 Effect of exchange rate fluctuations on the cash and cash equivalent balances ,860 11,500 5,000 6,500 39,360 11, Increase (decrease) in cash and cash equivalents 84,399 ( 20,692) 71,066 Balance of cash and cash equivalents as at beginning of the year 86,221 Balance of cash and cash equivalents as at end of the year 170, ,913 35,847 86, ,913 7

9 STATEMENTS OF CASH FLOWS (Cont.) Year ended December APPENDIX A CASH FLOWS FROM CURRENT ACTIVITIES Loss ( 7,263) ( 11,676) (12,217) Items not involving cash flows: Net losses (profits) from financial investments: Quoted debt assets ( 14,002) ( 13,333) (6,529) Shares 14,597 ( 5,626) (2,919) Other investments 4,126 ( 1,394) (1,192) 4,721 ( 20,353) (10,640) Finance expenses in respect of financial liabilities and others 16,859 2, Interest income from cash and cash equivalents ( 2,490) ( 1,814) (291) Loss from sale of fixed assets 2 Depreciation and amortization: Fixed assets 990 1, Intangible assets 2,044 2,694 2,806 Change in liabilities in respect of insurance contracts 141, , ,846 Change in reinsurance assets ( 329,627) ( 11,535) (16,392) Change in deferred acquisition costs ( 534) ( 687) (12,743) Taxes on income ( 2,862) ( 2,904) (3,241) Changes in other balance sheet items: Net acquisitions of financial investments ( 86,001) ( 188,419) (75,717) Outstanding premiums 2,378 37,679 (56,685) Salary tax receivable ( 1,674) ( 4,516) (2,754) Debtors and receivables 2,492 ( 2,340) (2,665) Change in liabilities due to transactions with Group companies (2,082) Creditors and payables and reinsurers deposits 262,637 26,761 (23,890) Liabilities for benefits to employees, net ( 52) 283 1,123 Total adjustments required to present cash flows from current activities 10,080 ( 56,061) 71,711 Cash paid and received during the year for: Interest received 16,085 9,216 3,580 Interest paid ( 2,116) ( 858) (20) Taxes received 2, Taxes paid ( 366) ( 81) (433) Dividend received 1,885 1, ,923 9,966 3,419 Total cash flows from current activities 20,740 ( 57,771) 62,913 APPENDIX B ACTIVITY NOT INVOLVING CASH FLOWS Acquisition of fixed assets and intangible assets against creditors F:\W2000\w2000\52169\m\11\E12Summary.doc 8