A group of experts presided by Mr. Ahmed ZINOUN, Managing Director of Societe Centrale de Reassurance (SCR), including representatives from La Direction des Assurances et de la Prevoyance Sociale (D.A.P.S), external consultants and SCR’s experts are working to design a universal insurance cover. The MGI project aims to achieve four objectives:

• The first two objectives concern the evolution in the Moroccan market of insurance cover against extraordinary risks and events:
- Natural hazards
- Political risks (terrorist attacks, riots...)

• The third objective is concerned with underprivileged populations who are the most vulnerable victims of such perils and thus, reflecting the need for the establishment of national solidarity safeguards.

• The fourth objective is devoted to encourage the penetration and development of this type of insurance cover across the national market.

In headquarters in order to deliberate the following:

1) Reading of the Board of Directors report and the auditors’ report on annual accounts ending December 31st, 2004 and approval of those accounts;
2) Allocation of the 2004 financial results;
3) Auditors’ Special Report on agreements pertaining to clause 56 of the law 17-95 and approval of executed operations during the year;
4) Full Administrators discharge;
5) Powers to be conferred.

1) Special Report by the Board of Directors to the Assembly regarding the double increase of capital project;
2) First increase of capital by MAD 250 million by injecting reserves and allocation of free shares at the rate of 5 new shares for 6 owned shares and subsequent modification of statutes;
3) Second increase of capital by injecting MAD 450 million in cash;
4) Decision on maintaining the preferential right of share buying;
5) Set up of the modalities required for capital increase (opening and closing dates of share buying / offered quota for buying/ due date);
6) Name of a special representative;
7) Powers for deposit and advertisement.

More than 250 participants representing more than 27 countries participated in this important event. It was an opportunity for the professionals of the sector to discuss the problems of motor insurance and reinsurance, and to share their experience regarding the Orange Card, the interpretation of property and bodily damages, henceforth to find adequate solutions. SCR was represented by Mr. Ahmed ZINOUN and three SCR managers.

The choice of the subject highlights the recognition of how important good governance is to companies in our different economies in which the insurance sector is one of the main drivers.

SCR took part in this important meeting that brought together more than 280 delegates representing mainly African insurance and reinsurance companies, authorities' representatives from several Africancountries as well as other European reinsurers.

The SCR’s (Société Centrale de Réassurance) Board of Directors meeting held on July 6th, 2005 and chaired by President Mr. Mustapha BAKKOURY passed a resolution approving the increase of capital of the company.

The Capital has been increased from (300,000,000 DH) three hundred million Dirhams to (1,000,000,000 DH) one billion Dirhams by incorporating additional cash totaling (450,000,000 DH) four hundred and fifty million Dirhams plus additional reserves totaling (250,000,000 DH) two hundred and fifty million Dirhams.

The reinforcement of the national reinsurer’s own capital aims to; consolidate its position as a leader of reinsurance on the Moroccan insurance market, meet the prudential rules set out by lawful texts and, improve and consolidate SCR’s rating for its reinsurance inward business from the international market.

For your information, SCR’s recent rating by Standard & Poor’s has been BBB pi (good financial security characteristics).

• The key financials of the S.C.R. are presented through 31/12/2004
• Gross Premium Income during the year 2004 rose 2.21% to 2,115.3 million Dirhams (MDH) compared to 2003.
• Retained Premiums reached 1,619.83 MDH.
• Technical Provisions reached 8,836.08 MDH.
• Activity throughout 2004 reveals a net income of 113.25 MDH