Chairman's Speech

After a year of dedicated and challenging work, I am pleased, on behalf of my colleagues on the Board of Directors, to provide you with a summary of the achievements of the company amid the difficult and extraordinary circumstances facing the Palestinian insurance industry.

The Board focused its efforts on studying and analyzing the insurance market, directing management to develop new operational policies that would make the company profitable in its insurance operations. This included controlling losses in medical treatment insurance, car compensation, and general insurance. Due to intense competition among insurance companies to secure these policies at low premiums and non-compliant insurance terms, urgent intervention from the Capital Market Authority is required to restore matters to their proper order. Otherwise, the results of these insurance policies will worsen year after year.

We take pride in the excellent results achieved in other types of insurance. The company has achieved overall excellent results, covering the losses of mandatory vehicle insurance and realizing a reasonable surplus in profits.

For years, National Insurance Company has adhered to the application of the International Financial Reporting Standard (IFRS) 9 and set aside the necessary provisions from its profits in those years. According to the Capital Market Authority and International Accounting Principles, all insurance companies must align themselves with the provisions of IFRS 17 in the coming period. As all studies conducted by actuaries and financial experts indicate, the obligations resulting from the application of this standard will have a significant impact on the results of insurance companies. Only financially strong companies will be able to align themselves with its provisions. The Board is keen for National Insurance to be the first to comply with this standard without affecting its financial position with any unforeseen consequences. Consequently, the company will have distributable profits sufficient to cover the obligations resulting from the application of this standard from the accumulated profits stage without affecting the company's results.

I take this opportunity to thank my colleagues on the Board of Directors for their exceptional efforts in supporting the company's journey. I also express my gratitude to the executive management, represented by the General Manager and his deputies, and all the employees of the company, including staff, experts, consultants, and agents, for their significant efforts that have enabled the company to occupy this leading position not only in the Palestinian insurance sector but also in the Arab insurance industry.