Auditor's report on financial statement of Foreign insurance company Kazakhinstrakh JSC (Kazakhstan) for year 2004

/IRBIS, Galina Tsalyuk, July 20, 05/ - Foreign insurance company Kazakhinstrakh JSC (Almaty, hereinafter - company), whose common shares are circulating in the official "A" listing category of Kazakhstan stock exchange (KASE), has presented to KASE auditor's report made by Ernst & Young (Almaty) on the company's financial statement for 2004, which was prepared in compliance with international accounting of financial statement (ISFS). Result of the company's financial and economic activity in 2004 is as follows, in accordance with audited statement (th. KZT, unless otherwise specified): ----------------------------------------------------------------------------- As of As of Indicator Dec 31, 03 Dec 31, 04 ----------------------------------------------------- ---------- ---------- Authorized capital (paid) 239,500 239,500 Shareholders' equity 841,063 1,473,759 Total assets 4,111,617 5,247,264 Investments in securities 913,375 1,051,098 Investments in banks 432,965 380,792 Inelaborate insurance premiums (reinsurer's interest) 1,123,568 1,571,035 Reserves on insurance losses (reinsurer's interest) 1,065,343 168,720 Total liabilities 3,270,554 3,773,505 Inelaborate insurance premiums 1,572,681 2,174,515 Reserves on insurance losses 1,334,134 210,335 Accounts payable on insurance 353,061 1,349,745 Insurance premiums (deducting reinsurer's interest 5,472,309 6,190,690 and reserves) Insurance payments (deducting reinsurer's interest) 335,408 187,313 Income from operational activity 132,109 256,781 Expenses from non-operational activity 544,598 715,969 Net income in a year 83,398 632,696 ----------------------------------------------------- ---------- ---------- Calculated by audited statement: ----------------------------------------------------- ---------- ---------- Return on equity (ROE), % 9.92 42.93 Return on assets (ROA), % 2.03 12.06 Earnings per 1 share (EPS), KZT 348.22 2,641.74 Balance cost of 1 share, KZT 3,511.75 6,153.48 ----------------------------------------------------------------------------- Price earnings ratio (P/E) was not calculated because trades on company's shares were opened in June 2005. Audit of the company's statement was conducted by Ernst & Young in compliance with international auditing standards. In the opinion of Ernst & Young, financial statement in all essential aspects for sure reflects company's financial position as on December 31, 2004, results of its activity, and cash flow for the year, ended by the mentioned date, in compliance with ISFS. Company's primary type of activity is insurance activity. [2004-07-20]