Ion Insurance Group S.A.

Transcription

1 Financial Statements For the period January 1, 2011 to December 31, 2011

2 Contents: 1-2: Statement of affairs. 3: Independent Audit Report. 4-5: Balance Sheet. 6 7: Notes to the Accounts.

3 Statement of Affairs. Period ending December 31, Whilst the 2011 year proved a trying time for World Insurance and Reinsurance markets, caused by numerous natural disasters, I am pleased to report that we have made excellent progress and our profit for the period under review was very pleasing. Our panel of independent agents and reinsureds continues to flourish and the business we accepted from them was certainly appreciated. Our year was taken up with the realigning of our administration processes, which are now handled by our contracted consultants, Pacindat Consultants Ltd. We are satisfied with this arrangement and have continued the consultancy agreement to take in our 2012 year of operations and, hopefully for many years to come. Our primary function as a reinsurance market is well suited to a third party administration service, as we are particularly interested in participating in existing agent and insurance company accounts, where results have been tested over a number of years of operations. Our clients are now comfortable with this method of reporting and we will concentrate our future efforts on the production of new business to complement our existing portfolio. One of our primary concerns at this time, in view of the global increase in major losses, is to ensure that our reserving policies are adequate to meet our responsibilities and we have continued to reserve in a conservative manner.

4 It can be seen from our attached balance sheet, that we have paid a number of losses over the past year and that we have established a reserve for known losses that are still outstanding at the close of the period under review. We have also established a contingent loss provision to safeguard against losses that are unknown at this time, but may be reported in the future. We have continued with the policy of creating a substantial unearned premium reserve, in accordance with International market practice. I am pleased to report that our company continues to enjoy a Dun & Bradstreet rating of 5A2 and we will strive to improve this further in the future. I am personally encouraged by continuing the progress we have made and the quality of the business relationships we are fortunate to maintain and I look forward to an extended period of growth and security for our clients and our company. Sincerely, Richard A Whitney, President.

5

6 Balance Sheet for the period January 01, 2011 to December 31, United States Dollars. Assets Current Assets Cash in Banks 102, , Escrow Accounts 770, , Total Cash 872, , Accounts Receivable 1,389, , Agent Premiums held in trust 104, Total current assets 2,366, ,362, Long Term Assets Stocks & Bonds 58,458, ,458, Oil & Gas Reserves 40,000, ,000, Notes Receivable 5,000, ,000, Real Estate Investment 565, Loan to Agent. 38, Total Long Term Assets 104,061, ,458, Total Assets 106,428, ,820,336.30

7 Liabilities & Stockholders Equity Current Liabilities Claims & L.A.E. Paid 146, Contingent Loss Provision (IBNR) 410, , Provision for outstanding losses 332, Unearned Premiums 966, , Operating Costs 164, Stockholders Equity 2,020, , Capital Stock 500, , Paid in Capital & Equity 98,458, ,458, Additional Paid in Capital 5,000, ,000, Retained Earnings 449, , Total Stockholders Equity 104,407, ,820, Total Liabilities and Stockholders Equity 106,428, ,820,336.30

8 Notes to the Accounts December 31, A. Accounting Policies The accompanying balance sheet has been prepared by management in accordance with generally accepted accounting procedures and has been independently audited by Michael J Hadley FCA. B. Premiums Premiums written and ceded comprise premiums reported and/or estimated on policies and contracts incepted during the accounting period. Unearned premiums comprise the unexpired portion of premiums written and ceded and are calculated based on inception dates, duration of the policies and contracts and management s estimate of the risk profile. C. Claims Claims incurred, which include direct and indirect, internal and external claim expenses, comprise claims paid in the period and changes in the provision for claims outstanding. Ceded loss recoveries are accounted for in the same period as the related losses on the business written. D. Acquisition Costs Acquisition costs comprise mainly commissions to cedants. For the purposes of the accompanying balance sheet, all acquisition costs have been deducted at source and all figures presented are on a net basis. E. Investments Listed investments are stated in the balance sheet at estimated market value.

9 F. Taxation The company, as a registered offshore company in Costa Rica is not liable to taxation. G. Foreign Currencies Transactions in foreign currencies are translated to United States Dollars at the rates ruling at the dates the transactions are made. Foreign currency monetary assets and liabilities are translated to United States Dollars at rates of exchange ruling at the end of the financial period. H. Staff Costs and Directors Fees. In view of the fact that inwards business is managed by independent agents, the cost of staff is included in the commission allowed by the company. Additionally, a consultancy fee is paid to Pacindat Consultants to cover administration duties carried out on behalf of the company. The board of directors decided to waive their right to fees for the financial period under review.