Consolidated financial results of ROSNO for the Three-months period ended 31 March 2006, prepared based on International Financial Reporting Standards (IFRS)

Consolidated Balance Sheet as at 31 March 2006
(in thousands of US Dollars)

	31 March 2006	31 December 2005
Assets
Cash and cash equivalents	68 245	64 361
Deposits with banks	101 076	127 764
Securities held-for-trading	202 570	129 933
Promissory notes and originated loans, net	5 510	8 176
Investment securities available for sale	16 219	11 872
Receivables, net	139 870	74 482
Prepayments, net	49 113	50 491
Reinsurer’s share of provision for unearned premiums	37 427	16 057
Reinsurer’s share of loss provision	7 774	13 297
Deferred acquisition costs, net	52 728	35 864
Goodwill, net	7 127	2 260
Other assets	2 980	1 810
Investments in associated undertakings	469	494
Investment property	2 755	2 755
Premises and equipment, net	41 409	33 672
Total assets	735 272	573 288
Liabilities
Provision for unearned premiums	286 381	182 756
Loss provision	112 155	102 869
Unexpired risk provision	3 426	4 700
Payables	134 623	99 510
Obligatory medical insurance liability	72 271	80 071
Other liabilities	2 562	2 472
Deferred income tax liability	6 832	2 522
Total liabilities	618 250	474 900
Equity
Share capital	74 546	74 546
Share premium	15 280	15 280
Preventive measures reserves	4 864	4 586
Statutory insurance reserves	36 617	28 705
Fair value reserve for investment securities available for sale	2 679	1 674
Translation reserve	3 188	(536)
Accumulated deficit	(22 279)	(25 871)
Equity attributable to shareholders of the parent	114 895	98 384
Minority interest	2 127	4
Total equity	117 022	98 388
Total liabilities and equity	735 272	573 288

Consolidated Income Statement for the Three-months period ended 31 March 2006
(in thousands of US Dollars)

	Three-months period ended 31 March 2006		Three-months period ended 31 March 2005
INSURANCE
Gross premiums written	226 450		201 309
Premiums ceded	(36 697)		(48 941)
		189 753		152 368
Change in provision for unearned premiums, gross	(87 783)		(80 006)
Change in reinsurer's share of provision for unearned premiums	19 349		19 006
		(68 434)		(61 000)
Net premiums earned		121 319		91 368
Gross claims paid	(48 120)		(34 004)
Claims ceded	406		1 057
		(47 714)		(32 947)
Change in loss provision, gross	(3 253)		(14 316)
Change in reinsurer's share of loss provision	(6 305)		776
		(9 558)		(13 540)
Net claims incurred		(57 272)		(46 487)
Acquisition costs, net	(26 708)		(13 438)
Claims handling expenses	(3 028)		(1 501)
Change in unexpired risk provision	1 427		-
Insurance operating expenses	(20 309)		(16 173)
Change in provision for impairment of insurance receivables	(3 066)		(4 536)
Other insurance income	410		-
Insurance activity result		12 773		9 233
INVESTMENT
Interest income		1 931		2 383
Gains less losses arising from securities held-for-trading		8 327		529
Other investment income		29		174
Change in provision for impairment of promissory notes and originated loans		49		(127)
Investment operating expenses		(1 180)		(822)
Investment activity result		9 156		2 137
OTHER
Other commission income		6 167		3 621
Other operating expenses		(6 117)		(4 322)
Foreign exchange translation losses, net		(4 525)		(112)
Change in provision for impairment of other receivables		-		(206)
Impairment loss		(246)		(1 630)
Other income		1 824		1 267
Other expenses		-		(871)
Other activity result		(2 897)		(2 253)
Profit from operations		19 032		9 117
Share of results of associates, net of tax		(45)		384
Profit before tax		18 987		9 501
Income tax expense		(7 425)		(4 087)
Net profit		11 562		5 414
Attributable to:
Equity holders of the parent		11 725		5 475
Minority interest		(163)		(61)

Consolidated Statement of Cash Flows for the Three-months period ended 31 March 2006
(in thousands of US Dollars)

	Three-months period ended 31 March 2006	Three-months period ended 31 March 2005
Cash flows from operating activities
Gross premiums received	161 011	222 608
Ceded premiums paid	(22 140)	(28 214)
Gross claims paid	(52 698)	(36 931)
Claims ceded received	1 552	1 379
Acquisition costs paid	(24 243)	(18 032)
Claims handling expenses paid	(3 025)	(1 501)
Commission income on reinsurance outwards received	243	203
Interest income received	2 516	1 700
Income received from trading in securities	1 850	40
Operating expenses paid	(24 700)	(19 454)
Other commission income received	6 168	2 909
Other income received	2 019	2 028
Other expenses paid	-	(888)
Income tax paid	(3 352)	(2 479)
Cash flows from operating activities before changes in operating assets and liabilities	45 201	123 368
Changes in operating assets and liabilities
Net decrease/(increase) in deposits with banks	31 659	(29 153)
Net increase securities held-for-trading	(58 588)	(41 003)
Net decrease/(increase) in promissory notes and other originated loans	3 251	(62)
Net (increase)/decrease in receivables	(2 521)	2 071
Net decrease/(increase) in prepayments	3 898	(14 890)
Net decrease in other assets	86	288
Net increase in payables	2 222	4 444
Net decrease in obligatory medical insurance liability	(11 522)	(1 861)
Net (decrease)/increase in other liabilities	(573)	30
Net cash inflow from operating activities	13 113	43 232
Cash flows from investing activities
Acquisition of investment securities available for sale	(2 499)	(3 251)
Acquisition of premises and equipment	(1 565)	(3 751)
Proceeds from disposal of premises and equipment	274	446
Acquisition of subsidiaries, net of cash acquired	(3 252)	-
Proceeds from disposal of subsidiary, net of cash disposed	(57)	-
Net cash outflow from investing activities	(7 099)	(6 556)
Effect of exchange rate changes on cash and cash equivalents	(4 444)	(110)
Net increase in cash and cash equivalents	1 570	36 566
Cash and cash equivalents as at the beginning of period	64 361	96 306
Translation difference	2 314	(250)
Cash and cash equivalents as at the end of the period	68 245	132 622