MİLLÎ REASÜRANS T.A.Ş.

Managers for F.A.I.R. Reinsurance Pool

FACTS ABOUT F.A.I.R. REINSURANCE POOL

BACKGROUND ___________________________________________ The 3rd Meeting of the F.A.I.R.(Federation of Afro-Asian Insurers & Reinsurers)General Assembly was held in Istanbul on the 11th-14th September 1972 and it was unanimously decided to set up the FAIR Non-Life Reinsurance Pool with effect from 1.1.1974. The General Assembly also unanimously entrusted the management of the Pool to the Millî Reasürans T.A.Ş., Istanbul . The Pool is aimed to achieve the following objectives: to promote cooperation among member companies; to provide an additional underwriting capacity in Asia and Africa and to increase the same for the member companies; to effect savings and even earnings of foreign exchange for the member countries and companies; to provide the same standard of reinsurance service as offered by international market; to accelerate the process of achieving increased self-reliance in the field of insurance and reinsurance through cooperation; to improve the reinsurance terms for national insurance companies as much as possible. The Pool had 24 members 11 from Africa and 13 from Asia in its 1st year of operation providing a premium income of Stg 857,527 whereas at the end of 2004 the premium reaching Stg 339,032,370 the profit percentage was of 4.71 % of the net premium. In 2005 it has 69 members 25 from Africa and 44 from Asia and the estimated premium income is 37,500,000 Stg. (The list showing the Pool's premium income and continent-wise membership position from inception as well as the list of F.A.I.R. Pool members in 2005 are given hereafter.)

OBJECTS ___________________________________________ The principal object of the Pool is to accept reinsurance and retrocession business from the African and Asian markets in the following classes of insurance business: Fire; Accident, excluding motor, credit and bonds business except when incidental or part of a bouquet; Engineering including C.A.R., E.A.R. and M.B.; Marine Hull and Cargo;

ORGANS ___________________________________________

General Asembly ________________ The General Assembly is the supreme authority of the Pool and it is composed of all the members of the Pool and the Secretary General of F.A.I.R. as ex-officio member. The General Assembly meets once every two years in the same venue and during the same period of the F.A.I.R. General Meeting.

Technical Board ________________ The Technical Board consists of 8 member companies wherein either Africa or Asia elected by the Pool's General Assembly for a period of 4 years subject to extention. The Managers of the Pool, the Secretary General, the President of the F.A.I.R. are also the ex-officio members of the Technical Board. The Technical Board meets regularly at least once a year at the Pool's office.

The Managers _____________ The Managers are appointed by the Pool's General Assembly to do all the administrative work necessary for the proper functioning of the Pool for a term of 4 years subject to renewal. The Millî Reasürans T.A.Ş. is entrusted with the management of the F.A.I.R. Reinsurance Pool since its establishment.

MEMBERSHIP ___________________________________________ All the members of the F.A.I.R. willing to offer a share from their treaties, are eligible for the membership of the Pool. However, the full membership is realized by entering reciprocal business exchange with the Pool, that is, ceding business to the Pool and accepting retrocession from the Pool's business by signing the Pool's Statute and Quota Share Retrocession Agreement. Any company willing to be a member of the Pool which is not a F.A.I.R. member is requested to contact the Federation at the following address for the necessary Federation membership formalities: "Attention: The Secretary General Federation of Afro-Asian Insurers & Reinsurers 14, Gawad Hosny Street Cario - EGYPT Tel. : (202) 392 36 30 Fax : (202) 392 18 48 Telex: 93317 FARIO UN E-mail: fair@access.com.eg After the realization of the F.A.I.R. membership, the company approaches the Managers for the Pool membership supplying necessary documents i.e. particulars and statistics of the treaties they are willing to offer to the Pool. All the applications are thoroughly studied by the Managers and accepted or rejected according to the merits and demerits of the business offered. CEDING OFFICE ___________________________________________ Companies, non-member to the Federation (the F.A.I.R), ceding business to the FAIR Reinsurance Pool are denominated "ceding offices" and have no right to receive reciprocity from the Pool.

UNDERWRITING ___________________________________________ It is the underwriting policy of the F.A.I.R. Pool to write proportional business and non-proportional on incidental basis, in all branches except Life and Aviation and to abstain from writing facultative business where there is not enough number to have balanced results. Aviation can be accepted as part of a bouquet.

RECIPROCITY ___________________________________________ All the business ceded to the Pool is retroceded back to the members with an almost 100 % reciprocity. But considerably high ceded premiums longstanding profitability and decent cash-flow can form basis for a more than 100 % reciprocity or vice-versa. The Retrocession shares to be allocated to the members are fixed every year.

F.A.I.R. POOL'S
PREMIUM AND MEMBERSHIP-WISE EXPERIENCE

 

LIST OF MEMBERS IN 2005

 

LIST OF CEDING OFFICES - 2005

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