NOTES TO BOSNA RE Co. Ltd. ANNUAL REPORT FOR 2007

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NOTES TO BOSNA RE Co. Ltd. ANNUAL REPORT FOR 2007

ANNUAL REPORT 2007The participation of retrocession in claims is KM 4,92 million, i.e. KM 6,83 million. Net claims borne by BosnaRE amount KM 10,85 million, i.e. KM 20,16 million.The reinsurance commission Bosna RE assigns to its clients to cover their acquisition costs amounts KM 7,21million, excluding IV Quarter effects. With these effects the amount is KM 6,47 million. Note that the lastamount is a part charged to 2007 balance of account and should be increased for KM 2,70 million to get thetotal amount of commission Bosna RE was charged with. The review of these statements together with effectsof IV Quarter is given in the table to follow.Table 11Gross Commission 9,180,077.462007 Gross Commission 6,472,429.73Gross Commission - Time Deferred 2,707,647.73Total Retrocession Commission 4,329,054.452007 Retrocession Commission 1,201,299.81Retrocession Commission - Time Deferred 5,530,354.26Net Commission paid by Bosna RE 3,649,723.20Net Comission paid by Bosna RE 2007 2,143,375.28Net Commission paid by Bosna RE-Time Deferred 1,506,347.92Statement of technical reserves is given in the Table 12No. Basis As at 31. December 2006 As at 31. December 20071 Loss Reserve 9,539,042.91 7,028,270.182 IBNR 2,976,973.42 3,192,427.483 Mass and Catastrophe Loss 0.00 0.004 Unearned Premium 2,867,232.12 9,238,228.335 Bonuses and Rebates Reserve 0.00 -290,882.13TOTAL 15,383,248.45 19,168,043.86The statement of Loss Reserves is decreased for KM 2,52 million, IBNR remained almost at the same level,while the unearned premium considerably increased for KM 6,37 million. This is manly the result of additionof IV Quarter to the account since almost total premium amount for this period is reserved through unearnedpremium. The same applied to loss reserves since IV quarter losses previously allocated to reserves, are nowcalculated through regular statement of account. For the first time, in 2007 we made bonuses and rebatesreserves. This primarily relates to profit commissions and corrections according to sliding scale commissions,accrued in 2007 and previous years which shall be paid in 2008. Considering the results of some treatiescorrected for sliding scale commission that presents an income for Bosna RE, this item in technical reservesstatement has negative sign.54

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