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  • Corporate ProfileThe Insurance Corporation of Barbados Limited and its subsidiary

    (ICBL or the Company), the largest general insurance

    provider in Barbados, writes business in all areas of general

    insurance as well as individual life insurance, individual health

    insurance, annuities and registered retirement savings plans

    (RRSP) along with providing group life and health insurance and

    group pensions.

    Our MissionLeading product innovation and employee development as we

    exceed the expectations of customers and all other stakeholders.

    Our VisionTo be the strongest, most innovative and caring financial services

    provider in the markets we serve.

  • INSURANCE CORPORATION OF BARBADOS LIMITED

    Page 4

    TABLE OF CONTENTS

    REPORTS & HIGHLIGHTS

    CHAIRMANS REPORT 6

    FINANCIAL HIGHLIGHTS 7 BOARD OF DIRECTORS 8

    CORPORATE INFORMATION 9

    EXECUTIVE TEAM 10

    SENIOR MANAGEMENT TEAM 11

    INDUSTRY OVERVIEW 12

    FINANCIAL & STATISTICAL SUMMARY 13

    MANAGEMENT DISCUSSION & ANALYSIS 14

    CORPORATE SOCIAL RESPONSIBILITY 17

    FINANCIAL STATEMENTS

    ACTUARIAL LIFE CERTIFICATE 20

    RESPONSIBILITY FOR FINANCIAL REPORTING 21

    INDEPENDENT AUDITORS REPORT 22

    CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30

    CONSOLIDATED STATEMENT OF INCOME 31

    CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 32

    CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 33

    CONSOLIDATED STATEMENT OF CASH FLOWS 34 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 35

    CORPORATE

    NOTICE OF SEVENTEENTH ANNUAL MEETING OF SHAREHOLDERS 108

    SHAREHOLDER INFORMATION 110

    MANAGEMENT PROXY CIRCULAR 112

    STATEMENT OF CORPORATE GOVERNANCE PRACTICES 120

    TERMS OF REFERENCE FOR THE AUDIT, COMPLIANCE & CORPORATE RISK MANAGEMENT COMMITTEE 132

    FORM OF PROXY 135

    END OF ANNUAL REPORT

  • REPORTS & HIGHLIGHTS

  • INSURANCE CORPORATION OF BARBADOS LIMITED

    Page 6

    agency and its rating system is designed to provide an opinion of an insurers financial strength and ability to meet ongoing obligations to policyholders. Their opinions are derived from an evaluation of a companys balance sheet strength, operating performance and business profile. There is no insurer writing domestic insurance business in Barbados with a stronger rating. This strong independent rating is important to both shareholders and policyholders of the Company.

    Following the year end, ICBLs Managing Director and CEO Ingrid Innes resigned from the Company. Mrs. Innes championed many of ICBLs improvements over several years and guided the transition in a number of areas including marketing, customer service and the introduction of modern technology. ICBL wishes her well as she moves on.

    The Company and the wider community in Barbados were saddened to learn in November of the passing of Dr. John Mayers who served as Chairman of the Insurance Corporation of Barbados during the period 1988 to 2000 and of the Insurance Corporation of Barbados Limited during the period 2000 to 2003; a legacy which lasted 15 years. Dr. Mayers was instrumental in the transition of ICB from a statutory corporation to a public company with shares traded on the Barbados Stock Exchange. His dedication to the role of Chairman and his friendly interaction with Management, staff and policyholders will forever be remembered.

    The Board acknowledges and thanks all the ICBL employees for their professionalism, commitment and performance in 2016.

    We also take this opportunity to wish Mrs. Jennifer Clarke, past CFO all the best on her retirement post year end and acknowledge her 24.5 years of service and dedication to ICBL.

    I would like to thank my fellow directors for their wise counsel and great commitment to this company. I would also like to thank policyholders and shareholders for their continued support, and the confidence and trust that you have shown in us.

    ......................................R. John Wight, C.P.A., C.A., C.P.C.UChairman

    I am pleased to address you on behalf of the Board of Directors of the Insurance Corporation of Barbados Limited (ICBL) for the year ended 31 December 2016. Net income of the Company for the year was $7.5 million. This compared with net income of $10.8 million for 2015.

    The financial results for the Company were not good in 2016 and was reflective of the challenges facing ICBLs policyholders in this economy. The Company continues to focus on what we have control over, namely responsible underwriting, conservative reinsurance programs, and strong customer service.

    The Company is very well capitalized with shareholders equity at 31 December 2016 of $147.3 million. This is very important to policyholders who need the peace of mind in knowing that their insurer will be able to pay their claims in the months and years ahead.

    Insurance rating agency A.M. Best reconfirmed ICBLs financial strength rating of A- (Excellent). A.M. Best is the worlds oldest and most authoritative insurance rating

    CHAIRMANS REPORT

  • ANNUAL REPORT 2016

    Page 7

    FINANCIAL HIGHLIGHTSFor the year ended 31 December 2016

    Policies in-force 46

    2016

    2016

    2016

    47

    2015

    2015

    2015

    (1)

    Change

    $ Change

    -2%

    % Change

    % Change

    Change

    (in thousands)

    (in thousands of Barbados dollars)Gross premiums written Net premiums writtenNet premiums earned Insurance contracts benefits and expensesOther underwriting expensesOther underwriting incomeUnderwriting incomeInvestment incomeOther incomeFair value adjustment on investment propertiesOther expensesIncome before income taxesIncome taxesNet income

    Net Income attributable to:ShareholdersNon-controlling interest in subsidiary

    Total shareholders equity

    Earnings per share (EPS)Return on equity (ROE)

    Sustained general insurance market lead Successfully wrote gross premiums of $115 million Generated net income of $7.5 million Maintained total shareholders equity of $147 million Safeguarded total assets of $428 million

    114,837 67,418 68,833 39,343

    9,819 15,210 34,881

    7,496 5,121

    (1,032) 37,809

    8,657 (1,157)

    7,500

    7,127 373

    7,500

    147,279

    0.18 4.8%

    121,308 72,694 73,902 43,018 10,572 13,030 33,342

    8,056 6,991

    (1,508) 33,994 12,887 (2,103) 10,784

    10,171

    613 10,784

    149,126

    0.26 6.9%

    (6,471) (5,276) (5,069) (3,675)

    (753) 2,180 1,539 (560)

    (1,870) 476

    3,815 (4,230)

    946 (3,284)

    (3,044)

    (240) (3,284)

    (1,847)

    --

    -5.3%-7.3%-6.9%-8.5%-7.1%16.7%

    4.6%-7.0%

    -26.7%-31.6%11.2%

    -32.8%-45.0%-30.5%

    -29.9%-39.2%-30.5%

    -1.2%

    -30.8%-30.4%

  • INSURANCE CORPORATION OF BARBADOS LIMITED

    Page 8

    INSURANCE CORPORATION OF BARBADOS LIMITED

    BOARD OF DIRECTORS

    R. John Wight,C.P.A., C.A., C.P.C.U.

    Juanita Thorington-Powlett,BSc., M.B.A., F.C.I.S.

    Goulbourne Alleyne, F.C.I.I., M.B.A., ARe, A.C.I.S., C.A.M.S., F.L.M.I., F.F.S.I.

    Jennifer Hunte, BSc., C.G.A., F.C.G.A., F.C.I.S

    Eric Smith, Dip. (Mass Comm.)

    Sir Paul Altman, G.C.M., BCH, J.P., B.B.A. MIA, Hon. LL.D (UWI)

    Sir Trevor Carmichael, Q.C. Gordon Henderson, B.A. Econ (Summa Cum Laude), LL.B (Hons.)

    Toni Jones,LL.B. (Hons.)

    Charles Lee Watchorn, F.C.I.A., F.S.A.

    CHAIRMAN OF THE BOARD, CHAIR OF THE FINANCE & CORPORATE GOVERNANCE COMMITTEE AND CHAIR OF THE NOMINATING COMMITTEEVICE CHAIRMAN OF THE BOARD (With effect from 31 March 2016)

    DEPUTY CEO AND HEAD OF GENERAL DIVISION

    DIRECTOR AND CHAIR OF THE AUDIT, COMPLIANCE AND CORPORATE RISK MANAGEMENT COMMITTEE DIRECTOR AND CHAIR OF THE HUMAN RESOURCE COMMITTEE

    DIRECTOR

    DIRECTORDIRECTOR

    DIRECTOR

    DIRECTOR

    Sitting from left to right: Eric Smith, Juanita Thorington-Powlett, R. John Wight, Jennifer Hunte and Goulbourne Alleyne.Standing from left to right: Sir Trevor Carmichael, Charles Lee Watchorn, Gordon Henderson, Toni Jones and Sir Paul Altman.

  • ANNUAL REPORT 2016

    Page 9

    CORPORATE INFORMATION

    CORPORATE SECRETARY Valentina J.G.R. Blackman, LL.B. (Hons.), LL.M (UWI), F.C.I.S., Int. Adv. Cert (Comp)

    IN-HOUSE LEGAL ADVISORS Valentina J.G.R. Blackman, LL.B. (Hons.), LL.M (UWI), F.C.I.S., Int. Adv. Cert (Comp) Tya R. Odle, LL.B. (First Class Hons.), Int. Adv. Cert (Comp) Andwele S. Sandiford, LL.B. (Hons.) Lorimer C.A. Denny, LL.B. (Hons.) Robin Prescod, LL.B. (Hons.) Nesha Raja, LL.B. (Hons.)

    EXTERNAL LEGAL ADVISORS C.W.P. Chenery, Q.C Clarke Gittens Farmer Trinity Law Chambers John Forde LL.M (Lond.)

    INTERNAL AUDIT Stacy Ashby, CPA, CIA, CFSA

    ACTUARIES Eckler Ltd. Towers Watson Canada Inc., trading as Willis Towers Watson

    BANKERS Republic Bank (Barbados) Limited CIBC FirstCaribbean International Bank

    REGISTRAR & TRANSFER AGENT Barbados Central Securities Depository Inc.

    REGISTERED OFFICE Insurance Corporation of Barbados Limited, Roebuck Street, Bridgetown, St. Michael, Barbados, BB11000

    WEBSITE www.icbl.com

    AM BEST RATING On 21 September 2016, A.M. Best maintained ICBLs A- (Excellent) rating, citing ICBLs strong risk-adjusted capitalisation, low underwriting leverage and solid performance. This recognizes ICBLs excellent financial strength and strong operating performance, while reinforcing the confidence of our customers and our broker partners that we will always be there when they need us most. The other companies within the BF&M Group: BF&M General Insu