annualreport 2 0 0 8

A N N U A L
R E P O R T
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RIF: J-30083118-3
R E P O R T
MISSION
A N N U A L
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MISSION
Banesco Seguros, C.A., registered with the Venezuelan
Superintendency of Insurance Companies under N∞ 109,
was established in 1993 with the main purpose of
offering high quality products and services to meet the
needs of the market.
The entrepreneurial approach guiding our team reflects
the soundness, confidence, support, security harmoniously
interwoven, identifying itself as one great family and a
solid working team oriented towards the growth and
consolidation of a common project.
Banesco Seguros' presence at a national level allows it
to opportunely manage, maintain and expand business
relations using strategies based on needs existing in the
environment.
MISSION
To be an Insurance Company known for the excellent
quality of its services, oriented toward satisfying the
needs of the clients of the Organization and those of
its Intermediaries.
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BANESCO SEGUROS
BOARD OF DIRECTORS • ORGANIZATIONAL STRUCTURE
Board of Directors
Chairman of the Board
Fernando Crespo Suñer
Executive Chairman
Pedro Luis Garmendia
Directors
Juan Carlos Escotet
Luis Xavier Luján
Salvador Cores
María Josefina Fernández
Nelson Becerra
Adil Coury Emmanuelli
Executive Personnel
Executive Chairman
Pedro Luis Garmendia
Executive Vice-President
Adil Coury Emmanuelli
Human Capital
Beatriz Pérez
General Comptroller
Mary Cruz Campos
Internal Auditor
Alexis Blanco
Legal Department
Marco Ortega
Organizational Structure
National Sales Management
Crosses Sales
Network Channels
Exclusive Agents
Insurance Brokerage
Special Accounts
Marketing
Branches Countryside
Suscription
Equity
Health and Persons
Automobiles
Suscription Control
Service National Management
Health Services
Casualty and Property Claims
Automobile Services
Actuarial
Administration
Planning
Technology of the Information
and Processes
Specialized Service Center
Accounting
Securities
Reinsurances
Branches Caracas
Los Dos Caminos
San Ignacio
Countryside
Araure
Barquisimeto
Barinas
Maracaibo
Maracay
Pampatar
Barcelona
Puerto Ordaz
Punto Fijo
San Cristóbal
Valencia
William Cruz
Carmery Narváez
Yrmgar Arias
Mario Verrocchi
Gloria Velásquez
Jaime Rocha
Juliana Gómez
José Guillermo León
Rafael Casique
Julio Marval
Giuseppe Occhino
Eleanor Martínez
Jezmín Lezama
Rosa Rodríguez
Iris Quiroz
Rosa Núñez
María Vieitez
Itziar Barandiaran
Yaneth Martes
Cristina Blassi
Carlos Rivas
María J. Martínez
Ana Pinto
Elizabeth Zambrano
Ana Rosa Viera
Alirio Valles
Edgar Farías
Rosa Miras
Roberto Norbiato
Wilfredo Campos
Angel Ferrer
Aliber González
Pedro Luis Tineo
Luis Silva
Lino Chong
Yelitza Rivero
Claudia Cárdenas
Gustavo Márquez
A N N U A L
R E P O R T
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TO OUR CLIENTS, SHAREHOLDERS AND RELATED
2008 was a great year for our Institution. We had an
81.5% capital increase while the sector had a 44.3%
average increase, and a 42.5% return on equity, which
is considerably higher than the 33.4% average within
the industry. Likewise, Net Premium Collected increased
by 78% in nominal terms over last year, thus ratifying
the consolidation of the Company, which ranked sixth
in the insurance market. We are still the leading company
in the Property and Life insurance industry. The results
of the year certainly showed that our operation enabled
the further strengthening of our Company, evidenced
by records of significant improvement in indicators
related to equity stability.
As to our national network, during 2008, major
investments in infrastructure were made to improve our
customer service provision. We opened one branch office
in Araure, Portuguesa State, acquired new premises for
Barcelona branch office, extended the premises of
Pampatar branch office, remodeled Valencia branch
office, and began remodeling Maracaibo and
Barquisimeto branch offices, thus consolidating our
presence nationwide even more. As to our new branch
in Caracas, it may be fully operative in mid 2009, and
will offer more convenience to both employees and
agents and insured.
Additionally, we extended our services through the
Specialized Service Center (Centro Especializado de
Atención - CEA) in order to include claim reporting and
car inspection. In 2009, we will include other services,
the projects of which were not ready as of 2008 close.
Our goal is that CEA acts like a virtual office for our
insured, agents, and business associates.
We incorporated the extranet service for inquiries, which
allow us to provide more efficient services to agents
and insured. Likewise, we made major investments in
technology to strengthen the system, and we
implemented solutions to procedures to improve Vehicle
and Health related services provided to the insured.
In order to boost the skills of our professional personnel,
we implemented a training program, which was organized
as a Specialization Course of Universidad Metropolitana.
This is a continuous program which combines insurance
related knowledge with management and human skills,
aimed at branch offices' personnel nationwide.
In addition, we implemented the pilot program “Justo
y Pronto” (Fair & Soon) in the city of Caracas to offer
our insured the possibility to directly choose the more
convenient repair shop and promptly receive a fair
indemnity.
Lastly, but just as important, we began doing businesses
in Panama. This is the first country where we expanded
our businesses abroad in order to provide the services
of an insurance company at both personal and general
level within the Panamanian market.
In 2009, we ratify our commitment to our insured,
agents, business associates, and employees. Therefore,
our strategic plan is focused on consolidating our position
within the market and providing high quality services.
Thank you for your trust.
Pedro Luis Garmendia
Executive Chairman
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ECONOMY 2008
A N N U A L
R E P O R T
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ECONOMY 2008
GROSS DOMESTIC PRODUCT (GDP)
BALANCE OF PAYMENTS
ECONOMY DURING 2008
Gross Domestic Product (GDP)
During 2008, the gross domestic product of the
Venezuelan economy maintained a steady increase,
which extends to five consecutive years after showing
a 4.8% actual variance as per preliminary aspects of
the Central Bank of Venezuela (BCV).
Although positive, these results imply a slowdown over
2007, when the year-on-year variance was 8.4%. The
product rate of growth slowdown would be related to
the rate of increase of the aggregate demand, which
has been the main economy's driving force since 2004.
In fact, the Venezuelan Government took economic
policy measures aimed to reduce the consumption rate
of growth in order to promote savings, such as interest
rate increase of credit card transactions, and import
restrictions for certain goods deemed luxury articles by
reducing the foreign currency allocated for the purpose
hereof. This caused a decrease of the final private
consumption rate of growth from 18.7% in 2007 to
7.1% in 2008.
Likewise, there was a 2.4% decrease of gross fixed
capital formation during 2008, while 2007 experienced
a 25.4% increase, which reveals a significant contraction
of investments.
As a result of the joint performance of these items, the
aggregate demand increased by 5.5% in 2008, which
implies a significant slowdown of the rate of growth
over 2007, with a 18.3% increase.
From the institutional point of view, the public sector
recorded a 16.4% annual variance, which is related to
the economic activity restructuring due to the company
nationalization policy by the Venezuelan Government.
By braking down the analysis into activities, the
economic growth in 2008 was mainly driven by the
5.1% increase of non-oil activities over the 3.2%
increase of the oil activity.
The sectors with significant growth were communications
(18.0%), community, social, and personal services (9.2%),
Government services (5.1%), and trade and repair
services (4.7%), while mining decreased by 5.6%.
The private manufacturing industry increased by 1.3%
with substantial outcome in paper manufacturing
(6.2%), metal manufactured products (2.7%), and
food industry (4.1%).
Balance of Payments
The balance of payments closed 2008 with US$ 9,275
million, as a result of a US$ 39,202 million surplus in
the checking account and a US$ 26,180 million deficit
in the financial account.
The checking account showed a 96.2% increase over
2007, as oil export revenues increased as a result of the
US$ 87,443 million increase of the value thereof, upon
the increase of the Venezuelan oil basket prices (36.1%)
and the export volume (2.5%).
The non-oil related external sales experienced 7.7%
decrease over last year to US$ 6,099 million (less
invoicing of the main export products in common metals
and motor vehicles).
Import of goods increased by 5.8% due to the dynamic
economic activity and higher requirements of intermediate
inputs and final goods, which resulted in a greater
demand of foreign products.
The deficit in the financial account derived from the net
flows related to other investment and direct investment
accounts. Other investment account has greater incidence
with a net assets increase of US$ 27,574 million, which
shows the increase in public assets in oil deposits and
loans granted to non-related foreign customers, as well
as the increase of the private sector's deposits due to
the complementary foreign currency offer (dealing of
debt securities in foreign currency).
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ECONOMY 2008
UNEMPLOYMENT
The direct investment had a US$ 1,041 million deficit
related to trade credits and the public oil sector's
profit reinvestment in its foreign affiliates. On the
other hand, there was an increase in liabilities of
foreign investment in the country due to dividends
payable to private sector companies and their related
companies, and new investments and profit
reinvestment in national financial institutions and
private sector companies.
Lastly, portfolio investment had a US$ 2,435 million
surplus due to the reduction of portfolio instruments
by national private financial institutions, which was
partly compensated by the increase in public assets
in marketable securities incorporated to the National
Treasury's investment portfolios.
The country's net international investment position
closed with US$ 137,331 million, thus showing an
increase over last year (US$ 86,851 million), due to
the US$ 214,895 million increase of foreign assets
and the US$ 77,564 million decrease in foreign
liabilities.
Unemployment
As of December 2008, the unemployment rate was
6.1% (782,917 unemployed), based on an
economically active population of 12,824,626
inhabitants. This implies a .1-point decrease over last
year (6.2%), as a result of the general economic
activity growth and the continuity of the social
programs generated by the National Government.
The unemployment rate decrease has progressively
slowed down since 2004, which leads toward the
conclusion that the economy is closer to its natural
unemployment rate. This level of unemployment is
considered to be a regular part of the functioning of
the economy, and it relates to the concept of a
production which changes the rate of growth of the
potential GDP in the long term. The informal economy
recorded a 44.1% during 2008.
A N N U A L
R E P O R T
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ECONOMY 2008
INFLATION
Inflation
The National Consumer Price Index (CPI) recorded a
30.9% accumulated rate of growth during 2008.
This performance is mainly related to offer-demand
imbalances. The core inflation annual variance was
31.7%.
Based on the preliminary figures of the BCV, during
2008, there was a 6.3% increase in consumption,
while the internal offer increased by 4.9%, which
led to a rising inflation throughout the period.
Although the National Government and the BCV
implemented a series of fiscal and monetary measures,
such as exchange rate nominal anchor, prices
administered for certain items, reduction of VAT rate,
and elimination of Financial Transactions Tax (FTT),
limited monetary policy and direct subsidy for some
agricultural items, they proved to be insufficient for
the performance of the general price level.
Despite the inflation performance and the
implementation of price controls, as to supply, there
has been a steady improvement in merchandise
availability in common market places. In December,
the product shortage in the market was 11.0% -the
lowest in the last 24 months.
On the other hand, the index of product diversity in
the market progressively improved, thus closing the
year at 154.2, in comparison with the 93.8 index
recorded in 2008.
Monetary Policy
During 2008, the monetary policy was characterized by
maintaining the restrictive bias existing since 2007. The
monetary aggregates were mainly used as a mechanism
to decrease the existing rising inflation in the Venezuelan
economy.
The BCV mainly leveraged in the modification and increase
of legal reserve regulations. This was used as a monetary
policy instrument in order to moderate the rate of growth
of monetary aggregates. Thus, the costs of implementing
a rigorous monetary policy of the BCV are transferred to
the national financial system through the non-productive
asset increase, since a part of each institution's customers'
deposits must be deposited in the issuing institute with
no remuneration whatsoever for such funds1.
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ECONOMY 2008
2008 INSURANCE MARKET
Likewise, upon implementing this measure, the creation
of secondary money decreases, which is evident in the
progressive decrease of the monetary multiplier upon
enforcement thereof, and of the money supply.
The legal reserve increase caused the implementation
of other measures like the increase of remuneration of
savings and the use of absorption transactions.
Since May 1, 2008, the minimum annual interest rate
to be paid by financial institutions for customers' deposits
from saving accounts and cash asset accounts will be
15%, and minimum 17% for customers' deposits from
term deposits and interests. Likewise, the interest rate
for absorption transactions of the central bank of
Venezuela will be 13% at 28 days and 14% at 56 days.
The interest rate payable to the BCV for injection
transactions will be 23% for 14-day transactions and
24% for 28-day transactions, with the inclusion of a
22% interest rate for a 7-day term. On the other hand,
a 33.5% of interest rate was established to be charged
by the BCV in its credit assistance transactions through
the concepts of discount, rediscount, advanced payment
and repo.
Therefore, the money supply-in terms of monetary
aggregate M2-is Bs.F. 194,432 million, which entails a
26.89% increased over the balance recorded in 2007.
This caused the reduction of the supply rate of growth
for the second consecutive year, after having increased
by 27.80% in 2007 and 69.35% in 2006.
The monetary base recorded a 30.55% increase at 2008
close for a total balance of Bs.F. 83,787 million. This
increase was related to partial monetization of resources
derived from the increase of the national oil basket price.
1
Under Resolution 06-09-02 issued by the BCV (July 2007), the legal
reserve increased from 15% to 16% of the total amount of the Reserve
Base Net Obligations and by 17% in October. In July, the reserve for
ceded investments was 13.75%, and gradually increased by .25 points
up to 17%. The marginal reserve remained at 30% for those institutions
with Net Obligations plus Ceded Investments of over Bs. 90 billion.
2008 Insurance Market
The financial system, like the Venezuelan insurance
industry, has shown an upward trend during the last
years, thus meeting the needs of people from all
walks of life by providing new products and services
of greater relevance for the general population.
The efforts made by insurance companies have obviously
achieved highly favorable results. However, some factors
have affected efficiency thereof, for example, the car
segment, which has been affected mainly due to shortage
of parts and specialized repair shops.
In addition, there is an imbalance between supply
and demand in the health industry mainly caused by
the difference between cost of services and fees
authorized to the industry.
The challenges of the industry are still focused on
diversifying the product supply and improving service
quality through constant upgrading of the
A N N U A L
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ECONOMY 2008
2008 INSURANCE MARKET
technological platform, which enables higher
responsiveness.
The new strategies implemented by the insurance industry
generated during 2008 a nominal growth of 45.2% in
total net premium collected, thus reaching the amount
of Bs.F. 22,387.1 million, equal to US$ 10,412 million.
In real terms, after deducting the annual variance of
the Consumer Price Index (CPI) for the period under
analysis (30.9%), accumulated net premium collected
during the last twelve months showed a 14.3%
increase, thus maintaining the progressive growth of
the industry resulting from the greatest economic
dynamism, which was mostly caused by the positive
progress of the public sector during the entire period.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Net Premium Collected (MM BsF)
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
Source: Sudeseg
1990
24.000
22.000
20.000
18.000
16.000
14.000
12.000
10.000
8.000
6.000
4.000
2.000
0
Growth (%)
The analysis by products evidenced 47.6% of written
premiums are related to personal insurance, while
52.1% corresponded to general insurance and 0.3%
to reassurance transactions.
It is evident that during the last twelve months, the
rate of increase of general premiums (46.0%) was
slightly higher than that of personal premiums
(44.2%), which were boosted by the increase in the
take-out of car insurance policies.
The increase in the personal segment was mainly
caused by regular take-out of group insurance policies
by Public Administration bodies since 2005.
Claim ratio indicators showed a sustained increase
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ECONOMY 2008
2008 INSURANCE MARKET
caused by mass inflation in the Venezuelan economy.
During 2008, claims paid-net premium collected ratio
increased by 4.7 points over 2007, i.e. 50.4% at
period close.
This behavior is the result of the highest rate of
increase experienced by claims paid (58.8%) over
net premium collected (45.2%).
18%
Source: Sudeseg
17%
16%
15%
15.9%
15.8%
14.3%
14%
12.4%
12.3%
12.8%
12%
12.2%
11%
10%
13.3%
13.4%
13.5%
13%
2002
2003
11.7%
2004
12.1% 12.1%
2005
Commission and Acquisition Costs
vs. Net Premium Collected
2006
11.9%
2007
2008
Administrative Costs vs.
Net Premium Collected
Likewise, expenses derived from administrative and
acquisition costs have increased in terms of net premium
collected, however, it is lower than the increase in claims.
During 2008, administrative costs-net premium collected
ratio increased by 1.0 points (14.3%). On the other
hand, commission and acquisition costs-net premium
charge ratio stood at 12.3%, which represents a small
.4 point increase over last year.
As a result of the increase in claims, as well as in
administrative and acquisition costs, year-end resultsnet premium collected ratio decreased by 1.3 points
during the last twelve months and closed 2008 at
4.7%. On the other hand, the indicator resulting from
return on equity ratio was 2.5% in real terms.
The 20 first companies ranked concentrated 86.7% of
total net premium collected in this period, while the
remainder of 13.3% was distributed among the other
companies within this market. As to the net result, we
observed that the concentration increased, since the
first 20 companies generate over 96.0% thereof.
A N N U A L
R E P O R T
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BANESCO
SEGUROS
BANESCO SEGUROS
With a sound track record within the Venezuelan
insurance market, Banesco Seguros has positioned
itself among the most important entities, which was
evidenced by the figures recorded during the last
years, and ranked sixth in the insurance market at
2008 close.
The company's financial results evidenced an
outstanding management during 2008, with total
production of net premium collected of Bs.F. 1,182.9
million, equal to a nominal increase of 78.2%, thus
exceeding total increase in the entire market.
Where deducting the effects for inflation, the
Institution recorded an actual increase of net premium
collected of 47.3%, thus maintaining the distinctive
progressive growth Banesco Seguros has had since
it was established in 1993.
The expansion of the Institution entailed a higher
market share (from 4.3% in 2007 to 5.3% at 2008
close) in net premium collected, which ratified the
progressive growth it has been experiencing since
2001, where it concentrated only 1.0% of net
premium collected in the market. Since then, the
share has consistently increased.
The analysis by products evidenced that 40.9% of
written premiums is related to issuance of personal
insurance, while 59.1% corresponded to general
insurance.
The Institution evidenced a significant growth in
personal insurance, upon recording a total net
premium collected of Bs.F. 483.7 million, i.e. a 190.6%
increase during 2008. On the other hand, income
derived from general premiums amounted to Bs.F.
699.1 million, equal to a 40.6% increase in the same
period.
As per 2008 balance sheet, total assets amounted
to Bs.F. 517.0 million, i.e. a 23.5% increase over
2007, where total assets amounted to Bs.F. 418.5
million.
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A N N U A L
R E P O R T
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BANESCO
SEGUROS
On the other hand, total liabilities amounted to Bs.F.
406.6 million, i.e. a 13.7% increase over the previous
year. Technical reserves reached Bs.F. 182.4 million.
We observed a sustained growth of the claim indicator,
thus following the market trend. In 2008, this indicator
of incurred claim-premium earned ratio showed a 7.7
point increase over the previous year, and closed the
year at 39.6%.
On the other hand, administrative cost-net premium
collected ratio was at 8.3%, i.e. a .6 point increase
over 2007. Acquisition and commission cost-net
premium collected ratio was at 6.4%, i.e. a .2 point
decrease in the same period.
BANESCO VIDA INTEGRAL
Taking the evolution of premiums, claims, and
administrative and acquisition costs as a whole, net
income- net premium collected ratio increased by .8
points during the last twelve months, and closed
2008 at 4.0%.
The reserve coverage rate reached an ideal level
(1.56%), which exceeded the market average (1.31%).
On the whole, the positive performance of the
Institution is related to the increase of its market
share, the diversification of its product portfolio, and
the rationalization process of its cost structure, which
allowed for a profitability increase during 2008,
despite of the downward trend observed in the market.
Thus, the profitability of Banesco Seguros, measured
in terms of liabilities, increased by 42.5%, thus
exceeding 2008 accumulated inflation rate.
BANESCO SALUD INTEGRAL
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A N N U A L
R E P O R T
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Banesco Seguros
STATUTORY AUDITOR'S REPORT
TO SHAREHOLDERS AND THE BOARD OF DIRECTORS
OF BANESCO SEGUROS, C.A
In my capacity of Statutory Auditor of Banesco Seguros,
C.A., and pursuant to the provisions of Articles 287,
309 and 311 of the Code of Commerce, I hereby inform
you that I have audited your balance sheet as of
December 31, 2008, and the related statement of
operations, changes in stockholders' equity, and cash
flows for the year then ended, in historical amounts.
The accompanying financial statements and their
corresponding notes are the responsibility of the
Company's management. My responsibility is to express
an opinion on these financial statements based on my
audit.
I conducted my audit based on the scope I deemed
necessary under the circumstances, which was
significantly less comprehensive than that of an audit
conducted under generally accepted auditing standards,
which aims at expressing an opinion on the financial
statements taken as a whole. Therefore, it is worth
mentioning that my audit, as well as any opinions on
the financial position of Banesco Seguros, C.A. as of
December 31, 2008, is mostly based on the independent
auditors' report of the Company, dated February 16,
2009, which shall be made part of my report.
The Company prepares its financial statements in
conformity with the accounting principles and standards
established by the Superintendency of Insurance
Companies of the Ministry of Finance, pursuant to the
Venezuelan Law on Insurance and Reinsurance
Companies, which differ in certain aspects from
accounting principles generally accepted in Venezuela,
as explained in Note 2 to the financial statements.
Caracas, February 16, 2009
Therefore, the accompanying financial statements were
prepared in order to comply with accounting standards
and practices established by such Entity, and not to be
presented in conformity with accounting principles
generally accepted in Venezuela.
Based on the opinion of the Company's independent
auditors, the aforementioned financial statements present
fairly, in all material respects, the financial position of
Banesco Seguros, C.A. as of December 31, 2008, changes
in stockholders' equity, and cash flows for the year then
ended, in historical amounts, in conformity with
accounting standards and practices established by the
Venezuelan Superintendency of Insurance Companies.
Therefore, I recommend approval thereof.
The audit conducted by independent auditors was
intended to express an opinion on the basic financial
statements of Banesco Seguros, C.A., taken as a whole.
The supplementary financial information included in
Attachments I to IV, regarding solvency margin estimated
as of December 31, 2008, is presented for additional
analysis and is not required for basic financial statements.
The financial information for the year ended December
31, 2008, has been subject to the same auditing
procedures applied to the basic financial statements of
the year then ended, and is presented fairly, in conformity
with standards established by the Venezuelan
Superintendency of Insurance Companies, Resolution
Nº 1.723 of November 17, 2000.
Gordy S. Palmero Luján
Main Auditor
CPC Nº 7202 • SIS Nº 148
A N N U A L
R E P O R T
2 0 0 8
REINSURERS
INTERNATIONAL
Munchener Ruckversicherungs-Gesellschaft (Germany)
Swiss Re (Switzerland)
Mapfre Re Compañía de Reaseguro, S.A. (Spain)
Hannover Ruckversicherungs AG (Germany)
Scor Global P&C (France)
QBE Reinsurance (Europe) Limited (Ireland, Bermuda)
Ace Property & Casualty Insurance Company (USA)
Reaseguradora Patria SAP (Mexico)
QBE del Istmo Compañía de Reaseguros, Inc. (Panama)
NATIONAL
Reaseguradora Delta
Provincial de Reaseguro, C.A.
RIV Reaseguradora Internacional de Venezuela
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A N N U A L
R E P O R T
2 0 0 8
Balance Sheet
AS OF DECEMBER 31, 2008
STATED IN VEF
BANESCO SEGUROS, C.A.
Subscribed Stock: Bs. 49,750,000.00
Paid in Capital: Bs. 49,750,000.00
Registered in the Finance Ministry under Number 109
Caracas / Venezuela RIF:J-30083118-3
ASSETS
Investment Suitable for Representing the Technical Reserves
Cash
Security investment in public entities
Mortgage Loans
Dwelling Property
Less: Accumulated Depreciation
Deposits in Guarantee
For Insurance Transactions
For Trust Fund Transactions
Investments Unsuitable for Representing the Technical Reserves
Stock Investment in Private Companies
Foreign Investments
Property and Investments for Claim Recoveries
Deposits in Other Institutions
Reinsurance Accounts
Checking Accounts with Reinsurers
Checking Accounts with Reinsurance Intermediaries
Depreciable and Amortizable Assets
Furniture
Less: Reserve for Depreciation
Office Equipment
Less: Reserve for Depreciation
Computer Equipment
Less: Reserve for Depreciation
Vehicle
Less: Reserve for Depreciation
Sundry Accounts
Accounts Receivable
Advanced on Commissions
Coinsurance Accounts
Benefits Receivable
Transitory Assets
Other Deferred Charges
Other Assets
Deposit for Service Guarantees
Transactions in Transit
284,141,154.33
30,016,762.54
103,425,874.70
71,758,056.30
82,525,000.00
(3,584,539.21)
78,940,460.79
1,744,384.57
874,489.12
869,895.45
107,662,093.42
25,193,813.93
20,960,079.77
740,500.00
60,767,699.72
1,750,596.98
563,532.60
1,187,064.38
7,489,393.83
4,313,045.26
(1,401,787.53)
564,120.32
(231,509.29)
5,337,551.54
(1,140,500.52)
129,893.70
(81,419.65)
2,911,257.73
332,611.03
4,197,051.02
48,474.05
38,983,878.27
33,045,307.21
718,105.76
274,948.62
4,945,516.68
11,681,804.23
11,681,804.23
63,578,286.22
37,900.00
63,540,386.22
TOTAL ASSETS
Memorandum Accounts
Premiums Receivable
Trust Fund Assets
Funds and Contracts Administered
TOTAL MEMORANDUM ACCOUNTS
517,031,591.85
632,035,451.15
601,331,746.98
30,241,961.28
461,742.89
632,035,451.15
A N N U A L
R E P O R T
2 0 0 8
Balance Sheet
AS OF DECEMBER 31, 2008
STATED IN VEF
BANESCO SEGUROS, C.A.
Subscribed Stock: Bs. 49,750,000.00
Paid in Capital: Bs. 49,750,000.00
Registered in the Finance Ministry under Number 109
Caracas / Venezuela RIF:J-30083118-3
LIABILITIES
Technical Reserves
Reserves for Premiums - Personal Insurance
Life Insurance - Mathematical Reserve
Collective Insurance - Current Risk Reserve
Single Insurance- Current Risk Reserve
Funeral Insurance
Reserve for Premiums - General Insurance
Equity
Liabilities
Reserves for Benefits and Claims Pending
Life
Collective
Single for Persons
Funeral
Equity and Liabilities
Premiums Collected in Advanced
Liabilities Payable
Taxes and Contributions
Accrued Expenses
Sundry Accounts
Accounts Payable
Intermediary Accounts
Coinsurance Accounts
Accounts Payable Employee
Reinsurance Accounts
Checking Accounts with Reinsurers
Checking Accounts with Reinsurance Intermediaries
Transitory Liabilities
Other Deferred Charges
Reserves for Current Risk
Other Purposes
Update of the Securities Granted as Guarantee to the Nation
Capital
Capital Subscribed and Paid
Earned Surplus
Legal Reserve
Retained Earnings
Non-Realized Surplus
Reserve for the Revaluation of Security Investments
Reserve for the Revaluation of Real Property
Profit of the Period
Profit
10,388,446.00
14,078,958.00
19,528,010.00
156,419.00
40,031,768.00
5,003,241.00
2,512,739.00
47,695,972.00
3,758,629.00
289,071.00
34,597,938.00
44,151,833.00
45,035,009.00
88,854,349.00
4,372,409.01
34,519,596.62
5,062,215.17
4,830,219.01
1,422,485.58
17,659.67
4,586,989.86
47,521,128.71
27,947,742.34
78,000.01
581,938.54
133,596.78
4,975,000.00
55,672,121.14
49,750,000.00
60,647,121.14
14,288,442.03
36,285,114.49
46,945,741.89
39,581,811.79
10,857,354.12
75,468,871.05
78,000.01
715,535.32
110,397,121.14
50,573,556.52
46,945,741.89
517,031,591.85
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
Memorandum Accounts
Premiums Issued Receivable
Trust Fund Assets
Funds and Contracts Administered
TOTAL MEMORANDUM ACCOUNTS
182,413,600.01
601,331,746.98
30,241,961.28
461,742.89
632,035,451.15
632,035,451.15
17
18
A N N U A L
R E P O R T
2 0 0 8
Profits and Losses Sheet
AS OF DECEMBER 31, 2008
STATED IN VEF
BANESCO SEGUROS, C.A.
Subscribed Stock: Bs. 49,750,000.00
Paid in Capital: Bs. 49,750,000.00
Registered in the Finance Ministry under Number 109
Caracas / Venezuela RIF:J-30083118-3
INCOME
Personal Insurance Transactions
Premiums for the Period
Benefits and Claims in Charge of Reinsurers
Operating Expenses Reimbursed by Reinsurers
Share of Reinsurers Profits
Technical Reserves from Previous Period
Technical Reserve for the Period in Charge of Reinsurers
Taxes Charged to Reinsurances
645,631,704.98
518,634,549.04
21,587,457.80
5,302,765.84
2,363,474.38
59,921,673.00
36,969,295.00
852,489.92
1,264,289,614.75
Overall Insurance Transactions
Reimbursed Premiums
Claims Reimbursed by Reinsurers
Operating Expenses Reimbursed by Reinsurers
Share of Reinsurers Profits
Technical Reserve from the Previous Period
Technical Reserve for the Period in Charge of Reinsurers
Taxes Charged to Reinsurances
Claims Salvage
702,344,667.03
28,537,994.78
36,274,187.37
95,513.14
249,419,453.00
233,093,847.00
5,803,537.57
8,720,414.86
60,380.09
Reinsurance Accepted Transactions
General Insurance Accepted Premiums
Technical Reserve from the Previous Period
57,455.44
2,924.65
30,065,058.61
Overall Management Activity
Securities' Update
Income from Trust Funds
Income from Service
Benefits Sundry
TOTAL INCOME
23,742,401.71
101,218.60
1,083,500.65
5,137,937.65
1,940,046,758.43
A N N U A L
R E P O R T
2 0 0 8
Profits and Losses Sheet
AS OF DECEMBER 31, 2008
STATED IN VEF
BANESCO SEGUROS, C.A.
Subscribed Stock: Bs. 49,750,000.00
Paid in Capital: Bs. 49,750,000.00
Registered in the Finance Ministry under Number 109
Caracas / Venezuela RIF:J-30083118-3
EXPENSES
Personal Insurance Transactions
Reimbursed Benefits
Reimbursed Claims
Returned Premiums
Commissions and Costs of Acquisition
Premiums Ceded to Reinsurers
Technical Reserves for the Period
Technical Reserves from Previous Periods with Reinsurance
Administrative Expenses
Refund due to Favorable Experience
Premiums Paid for Concept of Reinsurance not Proportional
579,059,732.52
28,318,245.03
239,185,348.27
28,867,641.49
19,879,036.93
48,709,611.63
135,377,539.00
12,982,311.00
41,236,007.44
87,494.24
24,416,497.49
General Insurance Transactions
Reimbursed Claims
Returned Premiums
Commissions and Costs of Acquisition
Premiums Ceded to Reinsurers
Technical Reserves for the Period
Technical Reserves from Previous Periods with Reinsurance
Share of Reinsurers in Claims Salvage
Administrative Expenses
Premiums Paid for Concept of Reinsurance not Proportional
1,263,082,097.16
108,616,146.79
9,252,129.40
55,328,135.84
543,001,080.38
312,726,794.00
167,246,327.00
253,479.11
56,423,462.88
10,234,541.76
Reinsurance Transactions Accepted
Reimbursed Benefits and Claims
Administrative Expenses
159,060.38
68,828.23
90,232.15
Overall Management Activity
Administrative Expenses
Financial Expenses
Update to the Reserves for Provisions
Update to Securities and Other Assets
Losses on Assets
Service Expenses
Other Expenses
50,800,126.48
1,778,306.06
843,971.01
37,171,389.59
3,144,115.86
19,338.06
5,637,112.64
2,205,893.26
TOTAL EXPENSES
Income for the Period
Profit
TOTAL
1,893,101,016.54
46,945,741.89
46,945,741.89
1,940,046,758.43
19
20
A N N U A L
R E P O R T
2 0 0 8
SERVICE POINTS
METROPOLITAN AREA • COUNTRYSIDE
Metropolitan Area
Oficina Principal
Centro San Ignacio, Torre Kepler, Piso 1, Av. Blandín, Urb.
La Castellana. Telephone: (0212) 277.7011
Barcelona - Estado Anzoátegui
Av. Nueva Esparta, C.C. Nueva Esparta, Módulo 2, Piso
2, Locales 1 y 2, Sector Venecia.
Telephones: (0281) 263.2666 / 7114 / 6842 / 6254
Oficina Comercial Centro San Ignacio
Centro San Ignacio, Nivel Chaguaramos, Lado Oeste, Av.
Blandín. Urb. La Castellana. Telephone: (0212) 277.7022
Punto Fijo - Estado Falcón
Av. Pumarosa, Esq. Calle Don Bosco, Centro Comercial
Wever. Telephones: (0269) 245.2025 / 0381 / 0392
Oficina Comercial Los Dos Caminos
Av. Sucre de Los Dos Caminos, cruce con Segunda
Transversal, Edif. Banesco Seguros, Urb. Los Dos Caminos.
Telephone: (0212) 285.3311
Pampatar - Estado Nueva Esparta
C.C. La Redoma, 2da. Etapa, Nivel Mezzanina, Locales
84, 85 y 86, Los Robles.
Telephones: (0295) 262.3021 / 4655 / 3705
Oficina Comercial Solano, Torre Banesco III
Av. Francisco Solano López, Sabana Grande.
Telephone: (0212) 706.8415
San Cristóbal - Estado Táchira
Av. Guayana, C.C. Paseo La Villa, Local B. Telephones:
(0276) 341.9116 / 1002 / 4205 / 5321 / 2152 / 4002
Torre Las Mercedes
Av. Francisco de Miranda, entre calles Cecilio Acosta y Av.
Mohedano, Chacao. Telephones: (0212) 277.8511 / 8400
Puerto Ordaz - Estado Bolívar
Calle El Aro, cruce con Calle Guri, Alta Vista Sur, C.C. Torre
Alférez, Local 1 P.B. Telephones: (0286) 966.8111 / 8127
/ 8125 / 8127 / 8023
Countryside
Barinas - Estado Barinas
Av. Cruz Paredes, entre Av. Sucre y Av. Marqués del Pumar,
Torre Unión, Nivel Mezzanina.
Telephones: (0273) 532.3177 / 2804 / 0420
Maracaibo - Estado Zulia
Av. 9 con calle 78 (Dr. Portillo). Edf. Banco Industrial,
Locales 14 al 17, PB. Telephones: (0261) 798.1793 / 2695,
798.2695 / 797.0591 / 2374
Maracay - Estado Aragua
Av. Las Delicias, C. Empresarial Europa, Nivel PB, Locales
PB y PB2. Telephones: (0243) 242.4364 / 3307 / 0482 /
5309. Urb. La Floresta, Calle Los Clubes, N˚ 10.
Telephones: (0243) 242.3782 / 2135 / 1343 / 3692
Valencia - Estado Carabobo
Av. Bolívar Norte entre Calle Montalbán y San José de
Tarbes, Torre Unida, Piso 2.
Telephones: (0241) 820.8173 / 8175 / 8056
Barquisimeto - Estado Lara
Av. Lara con Av. Los Leones, C.C. Río Lama, V Etapa, Nivel
Intermedio, Locales 12-14 y 15. Telephones: (0251)
254.0722 / 5322 / 267.6114 / 251.7522
Araure - Estado Portuguesa
Av. 13 de Junio, entre Av. 17 y 18, Edif. Inverfica, PB., Local
2. Telephones: (0255) 664.1732 / 0879 / 2801
0-500
CONTIGO
2668446
Specialized Service Center
www.banescoseguros.com