KUWAIT INSURANCE COMPANY S.A.K

KUWAIT INSURANCE COMPANY S.A.K HEAD OFFICE : Location Address Kuwait Insurance House Abdullah Al Salem Street Kuwait City, Kuwait Postal Address P.B.769, Safat, 13008, Kuwait Telephone : +965-22420135, 22420021 28 +965-1884433 (Hot line) Telefax : +965-22428530, 22461855 E-mail : info@kic-kw.com Website : 52 Years of Distinguished Services BRANCHES : Ahmadi Commercial Centre No. 9 Shuwaikh Sabhan Hawally Al Sura Al Fahaheel Salmiyah Farwaniya Jahra Al-Shabra Abu Fateera

BOARD OF DIRECTORS / TOP MANAGEMENT Name Mohammed Saleh Yousef Behebehani Suleiman Khaled Al Ghunaim Fouad Abdulrahman Al Bahar Manaf Mohammed Ahmad Al Hamad Ali Morad Behbehani Jassim Mustafa Boodai Talal Mohammed Reda Behbehani Position Chairman Vice Chairman Director Director Director Director Director Dr. Ali Hamad Al Bahar Eng. Ahmad S. Al Bahar General Manager Deputy general Manager

PROFILE BACKGROUND Kuwait is a centre-piece in the Middle East a state small in size but big in prominence, significant in its contribution to the world, rich in its qualities of life and people and possessing a sophisticated and mature financial sector, including insurance. Kuwait Insurance Company (KIC), established in 1960, is the first national company in Kuwait and the first Insurance Company in the Arabian Gulf states (GCC). It has stood as a beacon, guiding and paving the way for the birth, growth and development of the insurance industry in the Gulf. Following the liberation of Kuwait, KIC carried the mantle of leadership for the insurance of the Government programs for the reconstruction and rehabilitation of the facilities and infrastructure.

PROFILE PRESENT KIC is a composite life and general insurer, ranking as the largest insurer in the Kuwaiti market in Non-Life business. Besides, it is one of the leading players in terms of technical reserves, shareholders equity, capitalization and superior solvency and liquidity margins. It is also among the top ten insurers in the region in terms of shareholders equity and assets. KIC has a total staff strength of 250 employees in its Head Office and 12 branches. The Management recognizes the invisible asset of knowledge workers which is one of the key resources for competitive advantage. KIC has a fully integrated online IT system on par with some of the best in the world. KIC is therefore unquestionably capable of providing professional and quality service to its customers. KIC s top management is directly involved to ensure operational control and prompt services. KIC s reinsurance programmes are always placed with first class securities. KIC s long-standing cordial relationship with various major global reinsurers coupled with its own sound reputation have ensured that major international corporations prefer to do business with KIC. KIC s sound financial standing and excellent reinsurance arrangements have always ensured that claims are settled to the satisfaction of our valued clients. KIC s portfolio is well spread out across various classes. Apart from the competitive advantages in usual classes like fire, accident, engineering, liabilities, marine, aviation, motor and life, it holds the most prominent position in niche classes like professional indemnity engineers, architects, lawyers, accountants as well as medical malpractice; besides financial institution risks.

EXPERTISE KIC's major asset is the technical skill of its key personnel Vast experience in handing major insurance programs. Experienced in handling almost all major projects in various sectors. KIC is the market leader in non-life particularly in the Property, Construction Engineering and Professional Indemnity Insurance. Employee turnover is negligible, the long association of its key personnel with the Company provides unrivalled accumulated experience and expertise.

EXPERIENCE Pioneers in arranging various exclusive insurance programs for all sectors. KIC continues to lead the insurance programs for various projects, especially in the infrastructure, power and water sectors. Practically every major economic activity initiated in Kuwait has been covered by KIC, which speaks for the leading position that KIC holds. (Please refer the list of major projects)

DIRECT INVOLVEMENT OF MANAGEMENT Corporate and International Clients receive special consideration as KIC s Top Management is directly involved to ensure Operational Control to address their specific requirements and provide prompt and distinguished service.

MAJOR CORPORATE CLIENTS KIC is the insurer of choice for almost all major international contractors undertaking projects in Kuwait. Some of them are from the following Countries. China Germany Japan Korea France USA Apart from this, major business groups in Kuwait have been KIC s client for decades.

FINANCIAL STRENGTH KIC stands as one of the largest insurers among the national insurance companies in terms of technical reserves, shareholders equity & capitalization. Superior solvency and liquidity margins remain unmatched. KIC has been consistently recording good profits, the figure for 2011 being KD 4,350,477/-. KIC has the unrivalled record of paying out significant dividends in every year since inception KIC is a completely debt - free company

SECURITY KIC's Reinsurance Programs are always placed with excellent securities. The panel of reinsurers holding major share on our Treaty and Facultative Reinsurance are : SCOR, Hannover Re, Swiss Re, Munich Re, ARIG, Zurich, ACE, QBE, CCR Paris, Tokio Marine, Mitsui Sumitomo, Sompo Japan, Korean Re, Kuwait Re, GIC of India; all of which are rated A and above. Continuous monitoring of the Reinsurance Securities. The largest insurance claim in the history of Kuwait, being US$ 345 Million for KNPC s Mina Al Ahmadi Refinery Vapour Cloud Explosion on 25 th June 2000 was on a policy led by Kuwait Insurance Company. This was professionally managed by KIC and the shares of all participants were promptly settled.

RATING Kuwait Insurance Company is rated as follows : Moody s : Baa1 Capital Standards : A- (International Scale) AA- KW (National Scale)

BRIEF FINANCIALS OF KIC FOR THE YEAR 2010 & 2011 12

Business Mix of KIC - 2010 Currency: Kuwait Dinar FIRE GENERAL ACCIDENT MOTOR ENGINEERING MARINE & AVIATION LIFE TAKAFUL TOTAL 3,877,796 6,780,710 6,328,332 4,665,648 3,298,383 4,665,218 766,206 30,382,293 TAKAFUL 3% MARINE & AVIATION 11% ENGINEERING 15% LIFE 15% FIRE 13% MOTOR 21% GENERAL ACCIDENT 22% FIRE GENERAL ACCIDENT MOTOR ENGINEERING MARINE & AVIATION TAKAFUL LIFE

Business Mix of KIC - 2011 Currency: Kuwait Dinar FIRE GENERAL ACCIDENT MOTOR ENGINEERING MARINE & AVIATION LIFE TAKAFUL TOTAL 4,048,641 5,622,801 7,423,857 2,003,672 2,764,704 3,691,026 602,309 26,157,010 LIFE 14% TAKAFUL 2% FIRE 15% MARINE & AVIATION 11% ENGINEERING 8% GENERAL ACCIDENT 21% FIRE GENERAL ACCIDENT MOTOR ENGINEERING MARINE & AVIATION LIFE TAKAFUL MOTOR 29%

Business Mix of KIC 1 st Quarter 2012 Currency: Kuwait Dinar FIRE GENERAL ACCIDENT MOTOR ENGINEERING MARINE & AVIATION TAKAFUL LIFE TOTAL 1,544,846 1,734,325 2,256,289 366,344 862,536 78,042 2,471,829 9,314,211 LIFE 26% FIRE 17% TAKAFUL 1% MARINE & AVIATION 9% GENERAL ACCIDENT 19% FIRE GENERAL ACCIDENT MOTOR ENGINEERING MARINE & AVIATION TAKAFUL LIFE ENGINEERING 4% M OTOR 24%

Statistical Statement Year Written Premium Paid Up Capital Net Profit Cash Dividend 1981 18,952,000 6,174,000 7,200,000 918,750 1990/91 13,078,000 17,600,000 8,851,000 4,400,000 2001 11,370,000 19,404,000 6,577,000 5,239,000 2002 12,862,000 19,404,000 3,633,000 5,239,000 2003 15,406,000 19,404,000 15,685,000 7,762,000 2004 24,645,000 19,404,000 11,125,000 9,702,000 2005 27,223,000 19,404,000 23,474,000 13,582,800 2006 28,505,000 19,404,000 4,852,692 11,642,400 2007 27,168,592 19,404,000 13,292,738 13,582,800 2008 26,871,094 19,404,000 2,946,346 5,821,200 2009 29,346,424 19,404,000 (6,235,487) 3,849,400 2010 30,382,296 19,404,000 3,896,914 3,849,400 2011 26,157,010 19,404,000 4,350,477 3,880,800 P.S : The loss recorded for 2009 is due to valuation of equity held by the Company. Dividend paid out from the profit brought forward from previous year.

KUWAIT INSURANCE CO. S.A.K KUWAIT Statement of Financial position as at 31 December 2011 ASSETS Kuwaiti Dinars Note 2011 2010 Property and equipment 3 2,093,293 2,239,336 Investment properties 135,187 135,187 Loans secured by life insurance policies 149,651 281,386 Investment securities 4 57,937,609 57,595,800 Due from insurance and reinsurance companies 6,738,825 6,114,344 Reinsurance companies share of reserve for outstanding claims 18,398,285 18,591,249 Trade and other receivables 5 10,864,986 13,072,747 Fixed deposits with banks 6 23,007,259 19,382,433 Cash and cash equivalents 7 3,272,222 9,957,788 Total assets 122,597,317 127,370,270 EQUITY AND LIABILITIES Shareholders equity Issued and fully paid-up capital 8 19,404,000 19,404,000 Statutory reserve 8 9,702,000 9,702,000 Voluntary reserve 8 17,500,000 17,500,000 Treasury shares 9 (1,770,926) (539,857) Retained earnings 4,622,016 4,069,027 Investment fair valuation reserve (718,500) 3,093,808 Total equity 48,738,590 53,228,978 Liabilities Technical reserves 10 54,931,513 57,346,806 Due to insurance and reinsurance companies 9,124,890 9,164,802 Insurance and other payables 11 9,802,324 7,629,684 Total liabilities 73,858,727 74,141,292 Total equity and liabilities 122,597,317 127,370,270

KUWAIT INSURANCE CO. S.A.K KUWAIT Statement of Income as at 31 December 2011 Kuwaiti Dinars Note 2011 2010 Revenue Gross premium revenue 26,157,010 30,382,296 Premium ceded to reinsurers (11,921,832) (15,583,839) Net premium revenue 14,235,178 14,798,457 Change in reserve for unexpired risks (100,895) (425,074) Premiums earned 14,134,283 14,373,383 Commission earned 2,277,659 2,685,739 Net income from investments 12 2,151,763 3,307,388 Other income 764,013 708,246 Total 19,327,718 21,074,756 Expenses Net incurred claims (4,797,069) (6,792,134) Change in reserve for life insurance fund 64,112 (393,440) Life insurance - Expiry settlement (957,235) (1,035,064) Life insurance - Policies liquidated (90,413) (78,519) Commissions paid (2,826,701) (2,642,464) General & administrative expenses (4,270,935) (4,203,684) Participants rights (141,874) - (13,020,115) (15,145,305) Profit before provisions and contribution to taxes & management remuneration 6,307,603 5,929,451 Impairment loss on investment securities (1,707,635) (1,866,728) Profit before taxes & management remuneration 4,599,968 4,062,723 BOD remuneration (56,000) - Contribution to Kuwait Foundation for Advancement of Science Share (KFAS) (46,000) (40,627) National Labour Support Tax (105,351) (89,416) Zakat tax (42,140) (35,766) Total contribution to taxes & management remuneration (249,491) (165,809) Net profit for the year 4,350,477 3,896,914 Earnings per share (fils) 13 22.93 20.23

KUWAIT INSURANCE CO. S.A.K KUWAIT Notes to the Financial Statements 31 December 2011 Information on the Company s principal reportable segments are as follows: Income statement Marine & aviation Fire General accident Kuwaiti Dinars Life Takaful Unallocated items Year ended 31 December 2011 Revenue Gross premium revenue 2,764,704 4,048,641 15,050,330 3,691,026 602,309-26,157,010 Premium ceded to reinsurers (2,358,833) (3,477,223) (5,033,139) (979,391) (73,246) - (11,921,832) Net premiums revenue 405,871 571,418 10,017,191 2,711,635 529,063-14,235,178 Changes in reserve for unexpired risks (2,583) (6,851) (159,079) - 67,618 - (100,895) Premiums earned 403,288 564,567 9,858,112 2,711,635 596,681-14,134,283 Commissions earned 662,761 477,166 1,098,574 25,806 13,352-2,277,659 Net investments income - - - 133,060 3,993 2,014,710 2,151,763 Other income 8,472 205 726,687 19,570 24,062 (14,983) 764,013 1,074,521 1,041,938 11,683,373 2,890,071 638,088 1,999,727 19,327,718 Expenses Net incurred claims 32,630 (112,549) (3,832,025) (641,094) (244,031) - (4,797,069) Changes in reserve for life insurance fund - - - 64,112 - - 64,112 Life insurance Expiry settlement - - - (957,235) - - (957,235) Life insurance Policies liquidated - - - (90,413) - - (90,413) Commissions paid (125,425) (290,699) (2,217,398) (157,241) (35,938) - (2,826,701) General & administrative expenses (638,837) (456,312) (1,338,514) (533,200) (74,372) (1,229,700) (4,270,935) Participants rights - - - - (141,874) - (141,874) Impairment loss on investment securities - - - - - (1,707,635) (1,707,635) BOD remuneration - - - - - (56,000) (56,000) Contribution to Kuwait foundation for advancement of Science share (KFAS) - - - - - (46,000) (46,000) National Labour Support tax - - - - - (105,351) (105,351) Zakat tax - - - - - (42,140) (42,140) (731,632) (859,560) (7,387,937) (2,315,071) (496,215) (3,186,826) (14,977,241) Net profit/ (loss) for the year 342,889 182,378 4,295,436 575,000 141,873 (1,187,099) 4,350,477 Total

MAJOR RECENT PROJECTS INSURED BY KIC

Major Recent Projects Sr. No. MAJOR RECENT PROJECTS INSURED BY KIC ABOVE US $ 250 MILLION CONTRACT VALUE 1 AHMADIAHS - 70 Storey Building in Kuwait Ongoing Project US $ 312,000,000.- 2 SIEMENS - Recently awared Al Zour Power Plant Project Principal Ministry of Electricity & Water Ongoing Project US $ 730,000,000.- 3 DOOSANS - Shuwaikh RO Project Ongoing Project US $ 360,000,000.- 4 Siemens construction of AZ Zour South Gas Turbine conversion of combined cycle Power Plant - Principal Ministry of Electricity & Water Ongoing Project. US $ 708,640,940.- 5 Hyundai Heavy Industries 2000MW Combined Sabiya Cycle Gas Turbine at Sabiya Power Station - Principal Ministry of Electricity & Water - Ongoing Project. US $ 2,420,596,200.- 6 Jaber Al Ahmad Hospital Kuwait Arab contractors - Principal Ministry of Public Works Ongoing Project. US$ 1,033,557,046.- 7 Jaber Al Ahmed City Project Ahmadiah Trading Ongoing Project. US$ 251,677,852.- 8 Boubyan Seaport, Phase!, Stage 2 - Hyundai Engineering & Construction Ongoing Project 9 Jahra Road Project M/s Kuwait Arab Contractors Ongoing Project US $ 1,148,000,000.- US $ 924,749,163.- 10 MEW Contract Construction & Maintenance of Mina Abdullah WDC M/s Ahmadiah & M/s ABB (As Contractors) Ongoing Project US$ 250,836,120.- 11 Ahmadi KOC Hospital Project M/s Sayed Hamid Behebehani (As Contractors) Ongoing Project US $ 301,003,344.- P.S The above is not an exhaustive list and there are many projects which are not listed. ALL THE MEGA PROJECTS AWARDED IN 2009 AND 2010 ARE INSURED BY KIC

KUWAIT INSURANCE MARKET INFORMATION - 2011

KUWAIT INSURANCE MARKET - DIRECT PREMIUM FOR 2011 Classwise Currency : Kuwait Dinar Class of Business National Companies Arab Companies Foreign Companies Total % Marine & Aviation 18,815,209 466,602 621,823 19,903,634 8.9% Fire 19,248,430 947,828 958,413 21,154,671 9.5% General Accident 41,981,518 1,256,176 2,456,827 45,694,521 20.5% Motor :Comprehensive 38,566,297 4,710,435 4,112,637 47,389,369 21.2% TPL 16,336,167 2,498,850 1,210,307 20,045,324 9.0% 54,902,464 7,209,285 5,322,944 67,434,693 30.2% Non Life 134,947,621 9,879,891 9,360,007 154,187,519 69.1% Life + Medical 58,491,341 220,675 10,244,861 68,956,877 30.9% Total 193,438,962 10,100,566 19,604,868 223,144,396 100.0% 87% 5% 9% 100% Class % Marine & Aviation 8.9% Fire 9.5% General Accident 20.5% Motor 30.2% Life(Incl. medical) 30.9%

KUWAIT INSURANCE MARKET - DIRECT PREMIUM Classwise Growth Currency : Kuwait Dinar KUWAIT INSURANCE MARKET - DIRECT PREMIUM Class of Business 2008 2009 2010 2011 Growth difference between 2010 & 2011 Amount % Marine & Aviation 22,104,919 19,544,818 17,669,826 19,903,634 2,233,808 13 % Fire 19,765,471 19,589,375 20,004,676 21,154,671 1,149,995 6 % General Accident 41,964,127 34,453,497 49,373,607 45,694,521 (3,679,086) (7)% Motor:- Comprehensive 36,206,536 35,906,398 38,898,166 47,389,369 8,491,203 22 % TPL 17,192,691 17,078,895 17,936,843 20,045,324 2,108,481 12% 53,399,227 52,985,293 56,835,009 67,434,693 10,599,684 19 % 137,233,744 126,572,983 143,883,118 154,187,519 10,304,401 7 % Life + Medical 43,022,013 44,979,880 40,945,866 68,956,877 28,011,011 68 % Total 180,255,757 171,552,863 184,828,984 223,144,396 38,315,412 21 % Life 32,394,537 40,526,891 8,132,354 25% Medical 8,551,329 28,429,986 19,878,657 232%

KUWAIT INSURANCE MARKET - DIRECT PREMIUM FOR 2011 Company Wise

tta P.O BOX 769, SAFAT,13008, KUWAIT. 52 Years of Distinguished Services THANK YOU info@kic-kw.com TEL :+965-22420135 Hotline :+965-188 44 33 FAX :+965-22428530