Letter from the Chairman
In my name and on behalf of the Board of Directors’ members, I am pleased to submit herewith the Annual Report of Arab Reinsurance Company for the financial year ended December 31, 2014; summarizing the Company’s technical and financial operations.
Looking back, Arab Re was able to achieve positive results in 2014 despite the prevailing market challenges, the regional political volatility, and the increase in the incurred but not reported claims pertaining to previous underwriting years. Even though these outcomes do not meet the BOD’s expectations, they do not affect our cedants’ trust and commitment to the Company; which has always been known for its stable underwriting portfolio and the loyalty of its clients. Arab Re was also capable of achieving a positive investment return regardless of the tough circumstances; explained by the Company’s sound policy and the diversification of its investments through local and international financial institutions that enjoy a longstanding history of good performance, strong financial strength, and high expertise.
We are thriving to achieve better results be it at the technical, production, service or investment levels so that we reinforce the Company’s position and achieve further growth and better returns on equity.
Moreover and despite the pressing economic conditions that negatively affected several companies and the adverse impact of Lebanon’s sovereign rating, Arab Re was able to maintain its B+ rating -assigned by the international rating agency A. M. Best- with a stable future outlook. This is a clear echo of the Company’s robust technical, financial and administrative structure.
Overcoming the current challenges has helped in growing our confidence in the Company’s capabilities as well as its good standing, the professionalism of its staff, the efficiency of its internal audit system, its recourse to the state-of-the-art technologies, and the development of its programs. This is achieved through an ongoing coordination between the BOD and the executive management and a continuous BOD support to all growth and development’s efforts.
In conclusion, I am pleased to convey our heartiest appreciation to the Company’s clients, shareholders, BOD members, and committees, for their support and the confidence they have shown in the Company. I also look forward to additional future successes that meet your expectations and foster your contribution.
To read the full report, please click here.