Ramallah - The National Insurance Company (NIC) held its ordinary and extraordinary annual general meeting, attended by the company's shareholders, board members, executive management, the General Manager of the Insurance Department at the Palestinian Capital Market Authority, the General Manager of Securities Department at the Capital Market Authority, a representative from the Ministry of National Economy's corporate monitor, external auditors Price Waterhouse Coopers Palestine, and the company's legal advisor, Shihada Law Firm, at the main headquarters of the National Insurance Company in Al-Bireh.
At the beginning of the meeting, the Chairman of the Board of Directors, Mr. Aziz Abdul Jawad, welcomed the attendees. After the corporate monitor representative announced the completion of the legal quorum for the meeting, all agenda items were discussed. These included hearing and discussing the Board of Directors' report, approving it, hearing and discussing the company's auditor report, approving it along with the financial statements and annual budget, including all provisions and reserves. The assembly approved the Board of Directors' recommendation for board member bonuses and a 5% cash dividend distribution to shareholders starting from 05/05/2023, as well as a distribution of approximately 7.25% free shares.
During the meeting, Mr. Aziz Abdul Jawad, the Chairman of the Board of Directors, spoke about the company's achievements despite the difficult circumstances in our homeland, exacerbated by the Israeli aggression on Gaza and continuous attacks from Israeli settlers and forces on our cities, camps, villages, and people in the West Bank, escalating after the Gaza aggression.
"These circumstances led to a sharp economic decline due to the layoff of most Palestinian workers employed within the Green Line, compounded by the occupation authorities' refusal to transfer tax revenues to the Palestinian National Authority. Thus, our country is experiencing challenging economic, security, and political conditions, possibly the worst in the past three decades," he added.
Abdul Jawad further explained that the company fully implemented the IFRS17 accounting standard according to the instructions of the Palestinian Capital Market Authority and international accounting principles. The company ensured professional application by contracting two major international auditing firms, EY and PWC, and engaging expert actuaries. This was to ensure that the provisions made this year for IFRS17 implementation are sufficient and that there will be no additional provisions from previous years affecting future profits. This led to the company not achieving profits this year due to significant provisions made for this purpose.
He assured that the proposed distributions by the Board of Directors would not affect the company's solvency margin or liquidity margin, enabling the company to fulfill its obligations effectively.
The company's CEO, Mr. Bashar Hussein, highlighted the company's distinctive position in the Palestinian and Arab insurance sectors. He emphasized the company's commitment to social responsibility by developing insurance products covering settler attacks amid increasing Israeli army and settler aggressions throughout the West Bank. This challenge, coupled with the company's commitment to its clients and suppliers, demonstrates the company's financial strength, as it was rated by the Capital Market Authority as the first and highest-rated company in terms of financial solvency with an "A" (excellent) rating.
In conclusion, the ordinary and extraordinary general assembly approved the management and financial report, absolving the Board of Directors for the year ending 31/12/2023. Additionally, HLB was appointed as auditors for the company's financial year 2024, with the Board of Directors authorized to determine their fees.
NIC, a public shareholding company, was among the first Palestinian insurance companies established in 1992. It has maintained its leading position in the insurance sector in Palestine for over 31 years. The company operates according to strategic growth engines through its network of branches, offices, and agents across Palestine, while enhancing its pioneering role in social development through its corporate social responsibility strategy.