annual reportLIA insurance

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our company is built on business ethics.

We have built our company around 3 pillars that guide our business philosophy. When you’re under our roof we will strive to treat you with honesty, trust, and integrity. They are not only our ethics but the values we live by.

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table of contents

auditors’ report

18

statement of financial position

20

lebanon economic report 2011

16

statement of income

22

statement of comprehensive income

24

statement of changes in shareholders’ equity

25

statement of cash flows

26

notes to the financial statements

28

46addresses

chairman’s message

08

board of directors and management

10

distribution of portfolio

12

financial highlights

13

LIA AR 2011.indd 4-5 3/20/12 5:00 PM

honesty is the blueprint of our company.

When we were building our vision we understood the responsibility we had towards our customers and take great pride in treating you with honesty, transparency, and open arms so you feel safe in our care.

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9

chairman’s message

In 2011, we again made progress in all of these areas. We also know we still have goals that have yet to be achieved and are dedicated to making further accomplishments. We are always looking for ways to reinforce our strategy.

At LIA, we don’t just sell insurance plans; we help families and businesses become established financially. We do that by creating a long-term relation built on security and trust. That means recommending appropriate coverage and providing best safety counsel to our customers to minimize risks and consequently pay adequate insurance premiums.

Our risk management approach is successful because we have a team of experts advising customers every step of the way.

Perhaps most importantly, our approach takes into account that people’s hard earned money is dear to them, which means every premium must be spent prudently and professionally.

I hope you find this report helpful in understanding LIA’s progress in all Insurance business categories.

The following annual report includes statements corresponding to LIA’s achievement during the last year along with our independent auditors’ report and notes.

LIA is hereby reporting a profit of USD 11.6 million for the year 2011. This compares to a profit of USD 9.9 million in the year 2010. Year on year results are 17.18% higher.

Despite the challenging conditions our sister company in Syria achieved a net profit increase of 13% to reach USD 2.26 million in 2011.

It is LIA’s policy to maintain a positive trend in a solid and conservative balance sheet. LIA shareholders’ equity increased by 4.5% to reach the threshold of USD 69.4 million.

The company’s new solvency ratio of 85.34% compared to the 10% regulatory requirement rate presents an additional financial solidity feature.

Finally, I want to express my thanks to each of my fellow board members for their contribution, counsel, and firm support throughout the year and my sincere appreciation to LIA management and staff for the hard work and the dedication shown. I highly value our clients, reinsurers, providers, brokers and agents’ loyalty and trust.LIA’s success is the result of the efforts of each of us working together as one group in a clean and ethical environment. I am confident that we will continue to work all together to make LIA the local insurance market leader. Sincerely,

Raymond W. AudiChairman – General Manager

LIA insurance has a solid, positive culture, built on fundamental business ethics that we all believe in and share. As we move forward, we affirm our conviction that long-term business success is linked to our ability to deliver the highest standards of service, customer care, ethics, and community engagement in everything we do.

I hope you find this report helpful in understanding LIA’s progress in all Insurance business categories.

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11

H.E. Raymond W. Audi | Chairman & General ManagerMr. Salam N. Hanna | General ManagerDr. Imad I. ItaniMr. Joseph I. KesrouaniMr. Farid F. Lahoud

Mr. Salam N. Hanna | General ManagerMr. Antoine H. Bechara | Deputy General ManagerMr. William H. Salem | Deputy General ManagerMr. Georges F. Serhal | Technical ManagerDr. Elie J. Haddad | Life ManagerMr. Zareh B. Basmadjian | Business Development ManagerMr. Fady E. Noujaim | Financial ManagerMr. Halim E. Abou Harb | Reinsurance ManagerMr. Rami G. Haddad | Operations Manager

Munich Reinsurance Co.Gen ReScor Global P&CCaisse Centrale de RéassuranceAllianzPartner ReMapfre ReArab Reinsurance Company

Bank Audi sal - Audi Saradar Group

Law offices of Ramzi Joreige & Partners

board of directors

management

reinsurers

banker

legal advisors

auditorsSemaan, Gholam & Co.

board of directors & management

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2010 56,136

2011 81,384

LIA insurance profits

Life 45,986 56.5%

Fire 4,161 5%

Motor 12,634 16%

Medical 7,698 9%

Marine 2,320 3%

Misc. 8,585 11%

Life 24,413 43.5%

Fire 3,784 7%

Motor 11,346 20%

Medical 7,268 13%

Marine 2,059 4%

Misc. 7,267 13%

13

gross premiums 2010 in 000 usd LIA insurance assets

gross premiums 2011 in 000 usd

financial highlightsdistribution of portfolio

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trust is the foundation ofour company.

Our commitment to you is concrete. When you walk into our life we make great efforts to earn your trust so that together we can begin a successful relationship and start planning a rewarding future.

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1717

* Bank Audi sal – Audi Saradar Group. Group research Department publications “Lebanon Economic Report” 4th quarter 2011

lebanon economic report 2011*

Real GDP is set to have recorded a positive growth of 1% to 2%, though slowing down considerably from the 8% trend of the previous 4 years. The regional turmoil continued impacting private investment confidence, with major investment decisions delayed within an overall wait and see attitude on behalf of private investors at large, while household consumption maintained its sound double-digit growth despite overall political uncertainties.

It seems that after a “no growth” in the first half-year, the economy reported a moderate growth in the second half subsequent to the cabinet formation and the renewal of BDL Governor’s term as suggested by most of the country’s real sector indicators. Probably the most comprehensive of those indicators is the coincident indicator of Lebanon’s Central Bank, which had grown by merely 1.7% in the first six months of 2011 to rise to 3.3% in the second half-year.

Following net sustained demand on the Lebanese Pound since last July, the Central Bank’s foreign currency reserves hit USD 30.8 billion at end-December 2011, up by USD 2.2 billion since year-end 2010. BDL’s foreign currency reserves covered 79% of LP money supply and 18.3 months of imports at end-2011, which underlines the Central Bank’s strong ability to defend the currency peg and meet demand for foreign currencies should any pressures arise.

Bank deposits grew by 7.9% in the year 2011 to reach USD 115.7 billion. The USD 8.5 billion rise in bank deposits last year, though 26% lower than the corresponding increase in 2010, was sufficient to meet domestic private and public sector financing needs. Within the context of downward pressures on spreads and margins, a relatively lower quantity effect last year and a somewhat stagnating non- interest income base, banks’ net profits registered a 3.4% decrease year-on-year in 2011, the first negative growth rate in earnings in nine years.

The local political tensions and the regional political and security turmoil left their imprints on Lebanese capital markets, triggering a sharp drop in the BSE price index, a sustained low level of turnover ratio and an expansion in bond spreads and the cost of insuring debt. Lebanon’s five-year Credit Default Swap spread, which is a measure of market risk perception surged by 167 bps in 2011 to reach 471 bps at end-December. Despite attractive market pricing ratios, the BSE price index fell by 20% in 2011 in a market lacking liquidity and efficiency.

The Lebanese economy is apt to record a 3% to 4% growth, driven primarily by household consumption which is reporting resilience to the overall environment, while private investment is still subject to the overall wait-and-see attitude with the postponement of major investment decisions. As to inflation, it is expected to rise by an additional 2% relative to the past year as a result of wage adjustment in the private and public sectors to reach circa 8% over the year ahead.

The main economic challenge at the horizon is that tied to public finance conditions within the context of the expected rise in government spending, which might reverse the improvement in debt ratios, especially if it is not accompanied by a similar improvement in resource mobilization. Notwithstanding the emerging challenge tied to the deteriorating external balance after the balance of payments reported its first deficit in 10 years amidst rising import prices, stagnation in exports and contracting inflows.

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19

independent auditors’report to the shareholders of LIA insurance s.a.l.

management’s responsibility for the financial statementsThe Management of the Company is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

auditors’ responsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the

We have audited the accompanying financial statements of LIA insurance s.a.l., which comprise the statement of financial position as at December 31, 2011 and the related statements of income, comprehensive income, changes in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes.

risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate for the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

opinionIn our opinion, the financial statements present fairly, in all material respects, the financial position of LIA insurance s.a.l. as of December 31, 2011 and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

Semaan, Gholam & Co.February 10, 2012Beirut, Lebanon

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2121

2011 2010assets 000 LBP 000 LBP

intangible assets 160,158 183,932

investments 193,684,564 172,014,046

investments in subsidiaries and associates 13,390,839 6,130,289

fixed income securities and similar investments 50,492,427 43,748,693

equity and similar investments 2,330,514 3,064,531

mutual funds 539,301 576,593

funds held under reinsurance treaties 144,381 104,213

cash and cash equivalents 20,467,430 10,243,588

blocked bank deposits and deposits with maturity of more than 3 months 103,325,188 105,428,446

bank deposits with maturity of more than 3 months 100,184,376 102,287,634

bank deposits blocked in favor of moet (guarantees) 3,140,812 3,140,812

accrued investment income 2,994,484 2,717,693

capitalization & unit-linked contracts investments 195,036,894 153,324,885

equity and similar investments 258,670 1,453,808

fixed income securities and similar investments 59,146,250 21,874,121

cash and similar investments 135,631,974 129,996,956

reinsurance share in technical reserves (life) 5,681,721 3,019,928

reinsurance share in premiums reserves 5,391,721 2,771,283

reinsurance share in claims reserves 290,000 248,645

reinsurance share in technical reserves (non-life) 14,884,394 12,389,120

reinsurance share in premiums reserves 8,387,902 7,612,926

reinsurance share in claims reserves 6,496,492 4,776,194

receivable under insurance business 13,802,976 13,646,564

premium receivable (direct business) 4,870,199 5,260,579

premiums receivable from intermediaries (indirect business) 8,932,777 8,385,985

receivable under reinsurance contracts 1,042,844 128,429

other amounts receivable under reinsurance contracts 1,042,844 128,429

other assets 4,584,432 4,343,657

non-investment properties 3,916,809 3,929,267

operating fixed assets 667,623 414,390

other receivables 964,760 943,153

amounts due from related parties - -

other amounts receivables 964,760 943,153

adjustment items 6,543,154 5,722,339

deferred acquisition costs 6,422,413 5,611,436

other adjustment items 120,741 110,903

total assets 436,385,897 365,716,053

LIA insurance s.a.l.statement of financial position(as at December 31, 2011)

2011 2010liabilities 000 LBP 000 LBP

shareholders' equity 104,670,921 100,153,063

paid up capital 62,500,000 62,500,000

authorized capital 62,500,000 62,500,000

less: unpaid capital - -

reserves (legal and general) 22,019,540 20,525,586

balance carried forward 2,752,856 (319,987)

profit and loss (current year result) 17,515,731 14,939,545

other reserves (117,206) 2,507,919

fixed income securities and similar investments (117,206) 2,507,919

life technical reserves 68,343,551 51,106,878

mathematical reserve 67,398,036 50,425,979

unearned premium reserves - -

outstanding claims reserve 754,536 578,622

ibnr (incurred but not reported) reserve 163,440 82,445

loss adjustment expenses reserve 27,539 19,832

unit-linked technical reserves 195,036,895 153,324,885

outstanding claims reserve (unit-linked) - -

mathematical reserve (unit-linked) 190,680,278 149,476,754

additional technical reserve (unit-linked) 4,356,617 3,848,131

non-life technical reserves 49,587,584 43,169,625

unearned premium reserve 35,173,708 31,872,150

outstanding claims reserve 13,220,547 10,342,648

ibnr (incurred but not reported) reserve 689,492 549,632

loss adjustment expenses reserve 417,322 326,768

premium deficiency reserve 86,515 78,427

provision for risks and charges 2,693,890 3,318,033

debt for funds held under reinsurance treaties 1,983,380 1,258,721

liabilities under insurance business 1,973,860 599,977

liabilities under direct business - -

liabilities under indirect business 1,973,860 599,977

liabilities under reinsurance contracts 4,371,290 5,195,997

other liabilities 7,279,883 7,220,175

due to personnel 723,370 438,414

tax due (state, social security, public collectivities) 4,702,385 4,064,422

amounts due to related parties 163,708 1,724,003

other creditors 1,690,420 993,336

adjustment items 444,643 368,699

other adjustment items 444,643 368,699

total liabilities 436,385,897 365,716,053

off balance sheet

other engagements given 171,583 319,583

engagements given as guarantee for insurance & reinsurance premium 3,140,812 3,140,812

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23

LIA insurance s.a.l.statement of income(for the year 2011)

2011 2010000 LBP 000 LBP

insurance premiums 107,659,262 71,631,595

insurance policy costs and charges 14,986,751 12,965,846

changes in unearned premiums reserve (54,762,095) (24,754,673)

reinsurance share of earned premiums (21,115,927) (18,878,002)

net premiums 46,767,991 40,964,766

investment income 3,801,987 3,352,192

commissions income 3,937,691 3,780,636

finance income (net) 6,266,007 5,800,912

provision no more required 750,000 -

other income 158,907 95,514

other revenues 14,914,592 13,029,254

total revenues 61,682,583 53,994,020

gross benefits and claims paid (31,817,361) (25,378,566)

reinsurance share in claims paid 11,658,190 8,092,470

gross change in provision for outstanding claims (3,053,814) (1,663,662)

change in reinsurance share of provision for

outstanding claims 1,571,811 309,384

change in deferred policy acquisition costs 810,976 952,279

change in other technical reserve (327,204) 170,605

change in reinsurance share of other technical reserve 189,843 147,446

net benefits and claims (20,967,559) (17,370,044)

administrative expenses (9,169,777) (8,119,170)

commissions expense (10,305,652) (9,112,806)

amortization and depreciation expenses (333,402) (245,300)

employee’s end of service benefits (86,003) (232,937)

investment expense (291,253) (125,809)

loss on exchange (net) (69,048) (238,067)

other expenses (1,219,049) (2,284,795)

other expenses (21,474,184) (20,358,884)

total benefits, claims and other expenses (42,441,743) (37,728,928)

profit before tax 19,240,840 16,265,092

income tax expense (1,725,109) (1,325,547)

profit for the year 17,515,731 14,939,545

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LIA insurance s.a.l.statement of changes in shareholders’ equity

25

LIA insurance s.a.l.statement of comprehensive income (for the year 2011)

2011 2010000 LBP 000 LBP

profit for the year 17,515,731 14,939,545

other comprehensive income:

- (loss) gain on financial assets designated at fair

value through other comprehensive income (935,966) 989,234

comprehensive income – profit 16,579,765 15,928,779

legal generalprofit

carriedfair

valuetotal capital reserve reserve forward changes

000LBP 000LBP 000LBP 000LBP 000LBP 000LBP

balance at january 1, 2010 92,044,271 62,500,000 3,737,570 12,096,146 12,191,870 1,518,685transfer to reserves - - 1,219,187 3,472,683 (4,691,870) -

distribution of dividends (7,500,000) - - - (7,500,000) -

adjustment related to prior year on premium deficiency reserve

(319,987) - - - (319,987) -

comprehensive income for the year 2010 - profit

15,928,779 - - - 14,939,545 989,234

balance at december 31, 2010

100,153,063 62,500,000 4,956,757 15,568,829 14,619,558 2,507,919

effect of ifrs 9 early adoption (2,686,907) - - - (997,748) (1,689,159)

balance at january 1, 2011 after early adoption of ifrs 9

97,466,156 62,500,000 4,956,757 15,568,829 13,621,810 818,760

transfer to reserves - - 1,493,954 - (1,493,954) -

distribution of dividends (9,375,000) - - - (9,375,000) -

comprehensive income for the year 2011 - profit

16,579,764 - - - 17,515,730 (935,966)

balance at december 31, 2011

104,670,920 62,500,000 6,450,711 15,568,829 20,268,586 (117,206)

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LIA insurance s.a.l.statement of cash flows(for the year 2011)

27

2011 2010000 LBP 000 LBP

operating activities

result for the year (before tax) 19,240,840 16,265,092

adjustments:

- provision for risks and charges 146,003 1,387,798

- provision for doubtful receivables 1,020,047 481,101

- amortization and depreciation 333,402 245,300

- profit on disposal of property, plant and equipment (4,521) -

- provision no more required (750,000) -

- unrealized loss on revaluation of trading investments - (269,950)

- unrealized gain on revaluation of fair value through profit or loss investments

186,515 106,454

banks deposits matured related to prior year 102,287,634 40,673,924

banks deposits maturing over three months (100,184,376) (102,287,634)

increase in technical provisions (net) 18,497,564 16,251,402

increase in unit-linked technical provisions 508,486 337,142

increase in capitalization technical reserve 41,203,524 15,936,179

increase in receivable under insurance business (1,176,458) (1,673,106)

increase in receivable under reinsurance contracts (914,416) (14,754)

increase in other receivables and prepayments (842,422) (538,088)

increase in liabilities under insurance business 1,373,884 418,443

(decrease) increase in liabilities under reinsurance contracts (824,707) 303,357

increase in debts for funds held under reinsurance treaties 724,659 431,315

(decrease) increase in other liabilities (262,934) 1,083,676

tax paid (1,326,524) (1,662,593)

payments of termination indemnity (20,146) (877,402)

cash (used in) from operating activities 79,216,056 (13,402,345)

2011 2010000 LBP 000 LBP

investing activities

investments in subsidiaries and associates (7,462,500) -

fixed income securities and similar investments (9,579,864) (18,573,898)

increase in funds held under insurance treaties (40,167) (50,523)

increase in accrued investment income (276,792) (1,640,784)

acquisition of property, plant and equipment (522,523) (1,797,402)

acquisition of intangible assets (27,880) (44,295)

proceeds from disposal of property, plant and equipment 4,521 -

increase in unit-linked investment contracts (508,486) (337,142)

increase in capitalization investment contracts (41,203,524) (15,936,179)

cash used in investing activities (59,617,214) (38,380,221)

financing activities

adjustment related to prior year on premium deficiency reserve - (319,987)

dividends paid (9,375,000) (7,500,000)

cash used in financing activities (9,375,000) (7,819,987)

increase (decrease) in cash and cash equivalents 10,223,842 (59,602,553)

cash and cash equivalents

at beginning of year 10,243,588 69,846,141

at end of year 20,467,430 10,243,588

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notes to the financial statements

significant accounting policiesthe companyCompagnie d’Assurances et de Réassurances du Liban et du Monde Arabe s.a.l. was constituted in the year 1975 and registered at the Commercial Registry in Beirut under No.34092.By virtue of the decision of the Extraordinary General Assembly Meeting held on 23 October 2008, the Company’s name has been changed to “LIA insurance s.a.l.”.The Company is governed mainly by its bylaws, the commercial law and the law relating to insurance operations.

Basis of preparationThe financial statements have been prepared in accordance with International Financial Reporting Standards, the Lebanese Code of Commerce and applicable requirements of the Lebanese Insurance Law No. 94 dated 28 June 1999.The financial statements of the Company have been prepared on an historical cost convention modified to include the measurement at fair value of financial assets and liabilities classified as fair value through profit or loss and fair value through other comprehensive income.The financial statements are denominated in Lebanese Lira (LBP).

Changes in accounting policiesThe accounting policies adopted are consistent with those of the previous financial year, except for the early adoption of phase I of IFRS 9 and the following new standards and interpretations: • Classification of Rights Issues (amendment

to IAS 32). • IFRIC 19 Extinguishing Financial Liabilities

with Equity Instruments. • Amendment to IFRS 1 First-time Adoption of

International Financial Reporting Standards. • Amendments to IAS 24 Related Party

Disclosures. • Amendments to IFRIC 14 Prepayments of a

Minimum Funding Requirement. • Improvements to IFRSs (May 2010).Adoption of these revised standards and interpretations did not have any material effect on the financial performance or position of the Company. They did, however, give rise to additional disclosures in some occasions.

29

Early adoption of IFRS 9In compliance with Circular 265 of the Lebanese Banking Control Commission issued on 23 September 2010 and addressed to the banking sector in Lebanon, Audi Group of Companies adopted, effective 1 January 2011, Phase I of IFRS 9 as issued in November 2009 and reissued in October 2010 and related consequential amendments to other International Financial Reporting Standards. The effective application date stipulated by the standard is annual periods beginning on or after 1 January 2013. The initial application date of this standard with respect to the Group is 1 January 2011 in accordance with the transitional provisions of the standard.The Company did not restate comparative information as permitted by the transitional provisions of IFRS 9 and has recognized impact of early adoption of IFRS 9 as at 1 January 2011, in the opening retained earnings and other components of equity as of that date.Phase I of IFRS 9 addresses the classification and measurement of financial assets and financial liabilities. IAS 39 is still being followed for impairment of financial assets and hedge accounting, as these will be covered through phase 2 and phase 3 of IFRS 9, respectively, which have not yet been completed by the International Accounting Standards Board (IASB). As IASB completes these phases, it will delete the relevant portions of IAS 39 and create chapters in IFRS 9 that would replace the requirements in IAS 39.

Requirements of IFRS 9 (phase 1)IFRS 9 introduced new classification and measurement requirements for financial assets and financial liabilities that are within the scope of IAS 39. It also cancelled all previous categories under IAS 39, namely financial assets held for trading, available for sale financial instruments, financial assets classified as loans and receivables and financial instruments held to maturity.

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31

Intangible assetsIntangible assets include the value of computer software. Intangible assets acquired separately are measured on initial recognition at cost.Intangible assets with limited duration are amortized over the useful economic life. The amortization period and the amortization method for an intangible asset with a limited useful life are reviewed at least at each financial year-end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and treated as changes in accounting estimates.Amortization is calculated using the straight-line method at a rate of 20% per annum to write down the cost of intangible assets to their residual values over their estimated useful lives.

Investment securitiesInvestment securities are recognized and derecognized on a trade date basis, when the Company becomes or ceases to be a party to the contractual provision of the instrument. All investment securities are initially recorded at cost, being the fair value of the consideration given and including acquisition charges.

Investments in debt securities Debt instruments that meet both of the following conditions are subsequently measured at amortized cost less any impairment loss (except for debt instruments that are designated at fair value through profit or loss upon initial recognition): • The asset is held within a business model

whose objective is to hold assets in order to collect contractual cash flows; and

• The contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Debt instruments that do not meet both of the above criteria are measured at fair value through profit or loss (FVTPL). In addition, debt instruments that meet the amortized cost criteria but which are designated at fair value upon initial recognition are measured at fair value through profit or loss. A debt instrument may be designated at FVTPL upon initial recognition if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities or recognizing the gains and losses on them on a different basis.Debt instruments are reclassified from amortized cost to FVTPL when the business model is changed such that the amortized cost criteria are no longer met. Reclassification of debt instruments that are designated as at FVTPL upon initial recognition is not allowed.

Investments in equity instruments Investments in equity instruments are classified at FVTPL, unless the Company designates at initial recognition an investment that is not held for trading as at fair value through other comprehensive income (FVTOCI).Upon initial recognition, the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate investments in equity instruments at FVTOCI. Designation at FVTOCI is not permitted if the equity instrument is held for trading.Investments in equity securities designated at FVTOCI are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value, with gains and losses arising from changes in fair value recognized in

Cash and cash equivalents For the purpose of the Statement of Cash Flows, cash and cash equivalents consist of cash in hand, bank balances, and short-term deposits with original maturities of three months or less, net of outstanding bank overdrafts.

Investments held to cover unit-linked liabilitiesInvestments held to cover unit-linked liabilities represent assets associated with certain contracts, for which the investment risk lies predominantly with the contract holder. The assets are quoted funds carried at fair value, based on quoted market prices. These investments are classified as “Investments at fair value through profit or loss” upon initial recognition and remeasured at fair value with all changes in fair value being recorded in the statement of income. Investment income realized and unrealized investment gains and losses are reported in the statement of income together with the changes in the provision for unit-linked liabilities.

Impairment and uncollectibility of financial assetsAn assessment is made at each statement of financial position date to determine whether there is objective evidence that a specific financial asset may be impaired. If such evidence

other comprehensive income and accumulated under equity. The cumulative gain or loss will not be reclassified to the statement of income on disposal of the investments. Dividends on these investments are recognized in the statement of income in accordance with IAS 18: “Revenue”, unless the dividends clearly represent a recovery of part of the cost of the investment.

Derivative financial instruments All derivative financial instruments are classified and measured at fair value through profit or loss.

Financial liabilities Financial liabilities carried at amortized cost under IAS 39 have been classified and measured at amortized cost using the effective interest method under IFRS 9 and no change in the classification and measurement of these instruments have been made.One major change in the classification and measurement of financial liabilities under IFRS 9 relates to the accounting for changes in fair value of a financial liability (designated at FVTPL) attributable to changes in the credit risk of that liability. For financial liabilities that are designated at FVTPL, the amount of change in the fair value that is attributable to changes in the credit risk of that liability is recognized in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in the statement of income. Changes in fair value attributable to a financial liability’s credit risk are not subsequently recycled to the statement of income. Previously, under IAS 39, the entire amount of the change in fair value of the financial liability designated at FVTPL was recognized in the statement of income.

Impact of early adoption of IFRS 9Management revised the Company’s financial assets and liabilities as at January 1, 2011 for reclassification and measurement purposes according to the requirements of IFRS 9 and its transitional provisions. The schedule presents all financial assets and liabilities which did not have an impact on the Company’s retained earnings or other components of equity upon reclassification as at January 1, 2011:

31

initial classification new classificationunder IAS 39 under IFRS 9

financial assets

derivative financial instruments trading FVTPL

funds held under insurance treaties loans and receivables amortized cost

cash and balances with banks loans and receivables amortized cost

reinsurance share in technical reserve loans and receivables amortized cost

receivable under insurance business loans and receivables amortized cost

receivable under reinsurance contracts loans and receivables amortized cost

financial liabilities

technical reserve loans and receivables amortized cost

debts for funds held under reinsurance treaties loans and receivables amortized cost

liabilities under insurance business loans and receivables amortized cost

liabilities under reinsurance contracts loans and receivables amortized cost

LIA AR 2011.indd 30-31 3/20/12 5:00 PM

exists, any impairment loss is recognized in the statement of income. Impairment is determined as follows:For assets carried at fair value, impairment is the difference between cost and fair value, less any impairment loss previously recognized in the statement of income;For assets carried at cost, impairment is the difference between carrying value and the present value of future cash flows discounted at the current market rate of return for a similar financial asset;For assets carried at amortized cost, impairment is the difference between carrying amount and the present value of future cash flows discounted at the original effective interest rate.

Derecognition of financial instrumentsThe derecognition of a financial instrument takes place when the company no longer controls the contractual rights that comprise the financial instrument, which is normally the case when the instrument is sold, or all the cash flows attributable to the instrument are passed through to an independent third party.

Premiums receivablePremiums receivable, included in the statement of financial position, are stated at original invoice amount less a provision for any uncollectible amounts computed in accordance with Circular N° 248/1/ET issued by the Ministry of Economy and Trade. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred.

Allowance for doubtful receivablesThe allowance for doubtful receivables is established by charges to expense based upon management’s evaluation of these receivables, current domestic and international economic conditions, past receivable losses and other factors and circular N° 248/1/ET issued by the Ministry of Economy and Trade on which insurance companies have to provide a provision for their receivables based on the time intervals for the issued and uncollected policies. Losses on receivables provided for are charged to the allowance; recoveries are included in current operations.

Legal reserveIn accordance with the requirements of the Lebanese Commercial Law, the Company has to appropriate 10% of its annual net income to a legal reserve account until it reaches one third of the capital. This reserve is not available for the distribution of dividends.

Product classificationThe Company issues life insurance contracts which are linked to investment contracts. Where contracts contain both an investment component and an insurance component and the cash flows from the two components are distinct, the underlying amounts are unbundled. Any premiums relating to the insurance component are accounted for through the statement of income and the remaining element is accounted through the statement of financial position as explained below:

Insurance contractsInsurance contracts are defined as those containing significant insurance risk at the inception of the contract, or those where at the inception of the contract there is a scenario with commercial substance where the level of insurance risk may be significant over time. The significance of insurance risk is dependent on both the probability of an insurance event and the magnitude of its potential effect.Once a contract has been classified as an insurance contract, it remains an insurance contract for the remainder of its lifetime, even if the insurance risk reduces significantly during this period.

Investment contractsAny contracts not considered insurance contracts under IFRS are classified as investment contracts. Amounts collected under investment contracts are not accounted for through the statement of income but are accounted for directly through the statement of financial position as an adjustment to investment contract liabilities.The underwriting result is determined after taking into account, inter alia, unearned premiums and outstanding claims:

Property, plant and equipmentProperty, plant and equipment are stated at cost after deduction of accumulated depreciation and any impairment in value.Depreciation is calculated on a straight line basis over the estimated useful life of the assets concerned.The following annual depreciation rates have been adopted:

The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets are written down to their recoverable amount, being the higher of their fair value less costs to sell and their value in use.Expenditure incurred to replace a component of an item of property and equipment that is accounted for separately is capitalized and the carrying amount of the component that is replaced is written off. Other subsequent expenditure is capitalized only when it increases future economic benefits of the related item of property, plant and equipment. All other expenditure is recognized in the statement of income as the expense is incurred.

Deferred acquisition costThose direct and indirect costs incurred during the financial period arising from the writing or renewing of insurance contracts are deferred to the extent that these costs are recoverable out of future premiums. All other acquisition costs are recognized as an expense when incurred. Subsequent to initial recognition, these costs are amortized on a straight-line basis based on the term of expected future premiums. Amortization is recorded in the statement of income.

Unearned premiums represent that portion of the premiums written in the period up to the statement of financial position date which is attributable to subsequent periods and are calculated at the following percentage of total premiums:

Outstanding claims represent claims arising from accidents prior to the statement of financial position date but not settled.Provision for outstanding claims has been set up by the respective departments of the Company in respect of reported claims but not settled.Reserves related to the life branch are approved by an actuary on all life policies in force at year end.In accordance with the requirements of decree No.13145 dated 2 September 2004 which was amended by decree N°2442 dated 9 July 2009, insurance companies are required to take additional technical reserves detailed and computed as follows:

Premium deficiency reserve (Non-life)Premium deficiency reserve should be taken into account when unearned premiums reserves are insufficient to cover expected losses and expenses. It is applicable to all non-life branches.

Provision for claims incurred but not reported (IBNR)The computation of IBNR should be based on claims incurred but not reported in the current year only when closing period is at least three months after the financial statements are established;If the closing period is too close to the date of the financial statements, the provision of IBNR should be based on historical data as follows:The average number of IBNR claims over three years multiplied by the average cost of claims paid. In order to apply another estimation method, the approval of the Insurance Control Commission should be obtained.

33

%

- Buildings 5

- General installations 6

- Computers and peripherals 20

- Vehicles 10

- Office equipment 8

- Furniture 8

- Marine business 25%

- Other business on prorata temporis basis on taxable premium

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Loss adjustment expense reserveThis reserve represents 3% of the sum of incurred but not reported reserve (IBNR) and outstanding claims for the year.

Mathematical reserveThe mathematical reserve is determined by actuarial valuation of future policy benefits. Actuarial assumptions include a margin for adverse deviation and generally take account of the type of policy, year of issue and policy duration. Mortality and withdrawal rate assumptions are based on experience; adjustments to the reserve are made in the statement of income.

Unit-linked technical reserveThe provision for unit-linked technical reserve is calculated on the basis of a prudent prospective actuarial valuation method through the use of prospective discounted cash flow techniques or the current unit fund price. The actuarial valuation includes a provision for participation which is the amount the Company expects to pay investment contract holders in addition to their guaranteed returns.

Reinsurance contracts heldIn order to minimize financial exposure from large claims, the Company enters into agreements with other parties for reinsurance purposes. Claims receivable from reinsurers are estimated in a manner consistent with the claim liability and in accordance with the reinsurance contract. These amounts are shown as part of “reinsurers’ share of technical provisions” in the statement of financial position until the claim is paid by the Company. At each reporting date, the Company assesses whether there is any indication that a reinsurance asset may be impaired. Where an indicator of impairment exists, the Company marks a formal estimate of recoverable amount. Where the carrying amount of a reinsurance asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount.

Claims Claims, comprising amounts payable to contract holders and third parties and related loss adjustment expenses, net of salvage and other recoveries, are charged to income as incurred. Claims comprise the estimated amounts payable, in respect of claims reported to the Company and those not reported at the statement of financial position date.The Company generally estimates its claims based on previous experience. Independent loss adjusters normally estimate property claims. In addition a provision based on management’s judgment and the Company’s prior experience is maintained for the cost of settling claims incurred but not reported at the statement of financial position date. Any difference between the provisions at the statement of financial position date and settlements and provisions for the following year is included in the underwriting account for that year.

Commissions earned and paidCommissions earned from ceded premiums are recognized at the time policies are reinsured.Commissions paid are expensed over the terms of the policies to which they relate using the prorata temporis method for non-marine business and 25% of commissions paid for marine business.

Interest revenueInterest revenue is recognized as the interest accrues using the effective interest method.

Dividend revenueDividend revenue is recognized when right to receive the payment is established.

Judgments In the process of applying the Company’s accounting policies, management has made the following judgments, apart from those involving estimations, which have the most significant effect on the amounts recognized in the financial statements.

Income taxInsurance companies in Lebanon are subject to the lump sum tax profit system which calculates profit based on issued premiums at rates fixed by the Ministry of Finance as follows:

Other income is distributed on a weighted average basis of premiums issued during the current year and added to taxable income.Income tax is currently fixed at 15%. Dividend declared is subject to a 10% tax.

Provision for termination indemnityEnd of service indemnity subscriptions paid and due to the National Social Security Fund (N.S.S.F.) are calculated on the basis of 8,5% of the staff salaries. The final termination indemnities due to employees after completing 20 years of service or at the retirement age or if the employee leaves permanently the Company, are calculated on the last salary times the number of years of service; the Company is liable to pay to the N.S.S.F. the difference between the total indemnity due to employees and the subscriptions paid (calculated at the rate of 8%).

Premiums earnedPremiums are taken into income over the terms of the policies to which they relate on a prorata basis. Unearned premiums represent the portion of premiums written relating to the unexpired period of coverage. The change in the provision for unearned premiums is taken to the statement of income in order that revenue is recognized over the period of risk.

Insurance contracts and investment contracts Material judgment is required in determining the liabilities and in the choice of assumption relating to insurance contracts and investment contracts. Such assumption is determined as appropriate and prudent estimated at the date of valuation and no credit is taken for possible beneficial effects of voluntary withdrawals.The key assumptions to which the estimation of liabilities is particularly sensitive are as follows:

Mortality ratesMortality assumptions are based on past and industry experience. Assumptions are differentiated by sex, underwriting class and policy type. Morbidity assumptions are based on the English tables AM 80 U, A 67-70 and TD 73-77.For life insurance policies, technical reserves based on above mentioned tables are set apart to face future expectations. Due to the constant improvements in mortality rates worldwide these reserves will keep the Company on the safe side in the future.

Increased mortality rates will lead to larger claims and claims occurring sooner than anticipated, increasing the expenditure and reducing profits for the shareholders.

Investment return The weighted average rate of return is derived based on assumptions consistent with the long term asset allocation strategy as set out in the product descriptions given to customers.

Discount rateDiscount rate related to the time value of money. Discount rate assumptions are based on current observed rates in the market adjusted for default risk. The discount rate assumptions are varied depending on the assets assumed to back the life insurance provisions. The assumptions are revised at each reporting date.An independent actuarial valuation of insurance contracts and investment contracts is carried out on an annual basis.

35

%

Branch

Life 5

Hospitalization 5

Accident 6

Motor 7

Fire 12

Marine 7

Acceptance 5

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Estimation uncertainty The key assumptions concerning the future and other key sources of estimation uncertainty at the statement of financial position date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Provision for outstanding claimsConsiderable judgment by management is required in the estimation of amounts due to contract holders arising from claims made under insurance contracts. Such estimated are necessarily based on significant assumptions about several factors involving varying, and possible significant, degrees of judgment and uncertainty and actual results may differ from management’s estimates resulting in future changes in estimated liabilities. The Company generally estimates its claims based on previous experience. Claims requiring court decisions are estimated individually. Management reviews provisions for claims incurred, and claims incurred but not reported on a monthly basis.

Foreign currenciesTransactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the statement of financial position date. All differences are taken to the statement of income.

Fair valuesFor investments traded in organized markets, fair value is determined by reference to quoted market bid prices.The fair value of interest-bearing items is estimated based on discounted cash flows using interest rates for items with similar terms and risk characteristics.For unquoted equity investments, fair value is determined by reference to the market value of a similar investment or is based on the expected discounted cash flows.

Capital managementThe primary objective of the Company while managing its capital, is to make sure that it maintains adequate ratios to support its business, and maximize shareholder value.The Company manages its capital structure and makes adjustments to it in light of changes in business conditions. No changes were made in the objectives, policies or process during the years ended December 31, 2011 and December 31, 2010. Capital includes shareholders’ equity and is measured at LBP.104,670,920,525 at December 31, 2011 (LBP.100,153,062,671 at December 31, 2010).

37

intangible assetsadditions balance at balance at

2011 31.12.2011 31.12.2010000 LBP 000 LBP 000 LBP

CostComputer software 27,880 1,103,591 1,075,711

AmortizationComputer software 51,654 943,433 891,779

Net value

At December 31, 2011 160,158At December 31, 2010 183,932

investments in subsidiaries and associates2011 2010

000 LBP 000 LBP

Investments in subsidiaries 9,039,131 1,576,631

Investments in affiliates 4,351,709 4,553,658

13,390,839 6,130,289

fixed income securities and similar investments2011 2010

000 LBP 000 LBP

Bonds 4,956,660 9,394,213

Financial instruments 31,411 136,650

Certificate of deposits 2,257,822 2,425,190

Lebanese treasury bills and Euro bonds 43,246,534 31,792,639

50,492,427 43,748,692

cash and cash equivalents2011 2010

000 LBP 000 LBP

Cash on hand 611,898 659,980

Banks deposits:

Current deposits 4,698,447 2,897,175

Term deposits with original maturities of three months or less 15,157,086 6,686,433

20,467,430 10,243,588

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blocked bank deposits and deposits with maturity of more than 3 months

2011 2010000 LBP 000 LBP

Technical investments 3,140,812 3,140,812

Term deposits 100,184,376 102,287,634

103,325,188 105,428,446

receivable under insurance business2011 2010

000 LBP 000 LBP

Premium receivables from brokers and clients 18,662,634 17,507,754

Provision for doubtful receivables (4,859,658) (3,861,190)

13,802,976 13,646,564

deferred acquisition cost2011 2010

000 LBP 000 LBP

Balance at January 1 5,611,436 4,659,158

Acquisition cost related to premiums matured in the year (1,850,321) (2,952,252)

Acquisition cost related to premiums maturing next years 2,661,297 3,904,530

Balance at December 31 6,422,413 5,611,436

provision for risks and charges2011 2010

000 LBP 000 LBP

Provision for risks 1,717,227 2,407,227

Provision for termination indemnity 976,663 910,806

2,693,890 3,318,033

property, plant and equipmentadditions balance at balance at

2011 31.12.2011 31.12.2010000 LBP 000 LBP 000 LBP

Cost

Buildings 199,194 4,251,864 4,052,669

General installations 209,141 1,056,058 846,916

Equipment and furniture 12,797 654,014 641,217

Vehicles 11,184 90,917 79,733

Computers and peripherals 59,346 769,193 709,847

Financial deposits - 3,816 3,816

Advances on acquisition 301 301 -

522,523 6,826,162 6,334,200

Depreciation

Buildings 211,653 335,055 123,402

General installations 23,257 647,892 624,634

Equipment and furniture 17,156 554,221 537,065

Vehicles (24,673) 45,527 70,200

Computers and peripherals 23,795 659,036 635,241

281,748 2,241,730 1,990,542

Net Value

At December 31, 2011 4,584,432

At December 31, 2010 4,343,657

technical reserve2011 2011 2010

company’s share

reinsurers share total total

000 LBP 000 LBP 000 LBP 000 LBP

Life

Mathematical reserve 62,006,315 5,391,721 67,398,036 50,425,979

IBNR 73,134 90,306 163,440 82,445

Loss adjustment expense reserve 19,092 8,447 27,539 19,832

Outstanding claims 563,289 191,247 754,536 578,622

62,661,830 5,681,721 68,343,551 51,106,878

Other branches

Unearned premium reserve 26,785,805 8,387,902 35,173,707 31,872,150

IBNR 253,302 436,190 689,492 549,632

Loss adjustment expense reserve 228,104 189,218 417,322 326,768

Premium deficiency reserve 86,515 - 86,515 78,427

Outstanding claims 7,349,463 5,871,084 13,220,547 10,342,648

34,703,190 14,884,394 49,587,584 43,169,625

97,365,020 20,566,115 117,931,135 94,276,503

39

LIA AR 2011.indd 38-39 3/20/12 5:00 PM

administrative expenses2011 2010

000 LBP 000 LBP

Salaries and related benefits 5,568,105 5,064,089

Marketing and advertising 128,940 95,178

Taxes and stamps 1,054,013 856,478

Business promotions and social aids 115,044 89,246

Services rendered 803,817 639,512

Professional fees 171,583 155,397

Office supplies 247,677 240,397

Telephone and telecommunications 277,189 266,607

Travel and transportation 146,408 101,158

Repairs and maintenance 242,496 201,160

Insurance 31,930 16,480

Rent and facilities services 54,182 45,256

Office cleaning 33,126 30,695

Utilities 124,214 105,019

Reception, hotel and entertainment 43,992 98,369

Attendance fees 67,815 67,815

Miscellaneous 59,246 46,314

9,169,777 8,119,170

capital solvency ratioAs per the insurance company law dated June 28, 1999 insurance companies have to keep a minimum capital solvency ratio of 10% calculated on the basis of written premiums net of cancellations.The Company has a capital solvency ratio of 85.34% for the year 2011 compared to 118.39% for the year 2010, calculated as follows:

41

risk managementThe risks faced by the Company and the way these risks are mitigated by management are summarized below.

Insurance riskInsurance risk is the risk that actual claims payable to contract holders in respect of insured events exceed the carrying amount of insurance liabilities. This could occur because the frequency or amounts of claims are more than expected. The Company only issues short term insurance contracts in connection with medical, property and motor (collectively known as fire and accident), marine cargo, workmen compensation, public liability and life.

Frequency and amounts of claimsThe frequency and amounts of claims can be affected by several factors. The Company underwrites mainly fire and accident and marine risks. These are regarded as short-term insurance contracts as claims are normally advised and settled within one year of the insured event taking place. This helps to mitigate insurance risk.

Reinsurance riskIn common with other insurance companies and in order to minimize financial exposure arising from large claims, the Company, in the normal course of business, enters into agreements with other parties for reinsurance purposes. Such reinsurance arrangements provide for greater diversification of business, allow management to control exposure to potential losses arising from large risks, and provide additional capacity for growth. To minimize its exposure to significant losses from reinsurer insolvencies, the Company evaluates the financial condition of its reinsurers. Reinsurance ceded contracts do not relieve the Company from its obligations to policyholders and as a result the Company remains liable for the portion of outstanding claims reinsured to the extent that the reinsurer fails to meet the obligations under the reinsurance agreements.

2011 2010000 LBP 000 LBP

Total equity 104,670,921 100,153,063

Written premiums net of cancellations 122,646,013 84,597,440

= 85.34% = 118.39%

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Regulatory framework riskThe operations of the Company are subject to local regulatory requirements within Lebanon. Such regulations not only prescribe approval and monitoring of activities but also impose certain restrictive provisions e.g. capital adequacy to minimize the risk of default and insolvency on the part of the insurance companies and to enable them to meet unforeseen liabilities as these arise.

Financial riskThe Company’s principal financial instruments are investments, receivables arising from insurance and reinsurance contracts and cash and cash equivalents.The Company does not enter into derivative transactions.The main risks arising from the Company’s financial instruments are interest rate risk, foreign currency risk, credit risk, market price risk and liquidity risk. The board reviews and agrees policies for managing each of these risks and they are summarized below.

Liquidity riskLiquidity risk is the risk that the Company will not be able to meet its commitments associated with insurance contracts and financial liabilities as they fall due.Liquidity requirements are monitored on a monthly basis and management ensures that sufficient liquid funds are available to meet any commitments as they arise.

Foreign currency riskForeign currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Substantially most of the Company’s assets and liabilities are denominated in US Dollar. The Lebanese Lira has, in recent years, remained stable against the US Dollar at the rate of 1 US Dollar = 1,507.50 Lebanese Lira.

Interest rate riskInterest rate risk is the risk that the value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Floating rate instruments expose the Company to cash flow interest risk, whereas fixed interest rate instruments expose the Company to fair value interest risk.The Company is exposed to interest rate risk on certain investments and cash and cash equivalents. The company limits interest rate risk by monitoring changes in interest rates in the currencies in which its cash and interest bearing investments and borrowings are denominated.

Credit riskCredit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. For all classes of financial assets held by the Company, the maximum exposure to credit risk to the Company is the carrying value as disclosed in the statement of financial position.The following policies and procedures are in place to mitigate the Company’s exposure to credit risk:

• The Company only enters into insurance and reinsurance contracts with recognized credit worthy third parties. It is the Company’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivables from insurance and reinsurance contracts are monitored on an ongoing basis in order to reduce the Company’s exposure to bad debts.

• The Company seeks to limit credit risk with respect to agents and brokers by setting credit limits for individual agents and brokers and monitoring outstanding receivables.

• The Company’s bond portfolio is managed by the investment officer in accordance with the investment policy established by the board of directors.

• The Company’s bank balances are maintained with a range of international and local banks in accordance with limits set by the board of directors.

• There are no significant concentrations of credit risk within the Company.

Price riskEquity price risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.The Company’s equity price risk exposure relates to financial assets whose values will fluctuate as a result of changes in market prices.The Company’s equity investments comprise securities quoted on the European and American Stock Exchange and a small number of unquoted securities.

Capital managementCapital requirements are set and regulated by the Lebanese Ministry of Economy and Trade. These requirements are put in place to ensure sufficient solvency margins. Further objectives are set by the company to maintain a strong credit rating and healthy capital ratios in order to support its business objectives and maximize shareholders’ value.The Company manages its capital requirements by assessing shortfalls between reported and required capital levels on a regular basis. Adjustments to current capital levels are made in light or changes in market conditions and risk characteristics of the Company’s activities. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends to shareholders or issue capital securities.The Company fully complied with the externally imposed capital requirements during the reported financial periods and no changes were made to its objectives, policies and processes from the previous year.

43

LIA AR 2011.indd 42-43 3/20/12 5:00 PM

OUR SUPPORT IS SOLID.WE VIEW YOUR AND OUR INTEGRITY ARE THE SAME THING AND IT IS CRUCIAL TO OUR JOB AND ALL OUR PLANNING TO MAKE SURE IT WILL ALWAYS BE INTACT.

integrity is the structure of our company.

Our support is solid. Your integrity is as important as ours and it is crucial to our job and all our planning to make sure it will always be intact.

LIA AR 2011.indd 44-45 3/20/12 5:00 PM

47

addresses

Main office (dora highway - cite dora 1)

Tel: (961-1) 255 640 Fax: (961-1) 255 659 P.O.Box: 11-1439 Beirut, LebanonE-mail: contactus@lialebanon.com

Moussaitbeh Mar Elias Street - Boubis Bldg.Tel: (961-1) 301 718 - 704 953 - 704 954Fax: (961-1) 704 955

Saida Riad El Solh Blvd. - Bank Audi Bldg.Tel: (961-7) 722 321Fax: (961-7) 722 321

Tripoli Tell, Kayal Street - Al Charek Bldg.Tel: (961-6) 435 503 - 624 006Fax: (961-6) 435 503

Zouk Val de ZoukTel: (961-9) 211 112 - 211 114Fax: (961-9) 210 757

Zahle Zahle Blvd. - Manara CenterTel: (961-8) 804 974Fax: (961-8) 804 974

Hazmieh Mallat Center 3Tel: (961-5) 452 708 - 452 943 - 456 402Fax: (961-5) 456 402

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