Pakistan Reinsurance Company Limited

Statement of Expenses

for the Half Year ended June 30, 2003 (Unaudited)

Deferred Commission

Net underwriting expense

Class

Commission paid or payable

Opening

Closing

Net commission expense

Other management expenses

Underwriting expense

Commission from reinsurers

For Six Months ended June,03

For Six Months ended June,02

For Three Months ended June,03

(A)

(B)

(C)

(D)

(E)

(F)

(G)

(H=D+E-G)

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Fire

103,341,468

21,265,796

124,607,264

23,289,505

101,317,759

153,004,654

40,420,799

Marine Cargo

27,318,072

5,907,297

33,225,369

3,990,280

29,235,089

6,137,450

Marine Hull

40,874

17,298

58,172

282,032

(223,860)

51,521,475

-140,531

Accident

62,002,804

21,708,134

83,710,938

4,839,414

78,871,524

13,596,108

Aviation

1,963,282

2,680,895

4,644,177

2,525,723

2,118,454

1,885,953

Engineering

20,578,843

3,533,738

24,112,581

22,013,875

2,098,706

120,882,833

5,464,185

Grand Total

215,245,343

55,113,158

270,358,501

56,940,829

213,417,672

325,408,962

67,363,964

The annexed notes form an integral part of these financial statements.

Naheed Hyder

Maj (R) Mohammad Fazal Durrani

Syed Yawar Ali

Fazlur Rehman Dittu

Executive Director (F&A)

Chief Executive

Director

Karachi, August 20, 2003