Medios de prueba

Dividend income 25%

Capital gains 52% Return on bank deposits 07% Return on Govt. Securities 06% Rental income 10%

JUBILEE GENERAL INSURANCE COMPANY LIMITED

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REPORT OF THE BOARD AUDIT COMMITTEE

The role of the Committee in the context of governance framework is to monitor:

i. The integrity of financial statements

ii. The appointment, qualification, independence and performance of External Auditors

iii. The performance of internal audit function

iv. The effectiveness of system of internal controls and risk management

v. Compliance with legal and regulatory requirements The Committee has concluded its annual review of the conduct and operations of the Company for the year ended December 31, 2014 and reports that:

g Four meetings of the Committee were held during

the year and presided by the Chairman of the Committee.

g The Committee reviewed the quarterly and annual

financial statements of the Company and recommende them for approval of the Board.

g The Company issued a Statement of Compliance

with the Code of Corporate Governance which has also been reviewed by the external auditors of the Company.

g The Chief Executive Officer and the Chief Financial

Officer have reviewed the financial statements of the Company and the Chairman's and Board of Directors' Report. They acknowledge their responsibility for true and fair presentation of the financial statements, accuracy of reporting, compliance with regulations and applicable accounting standards and establishments and maintenance of internal controls and system of the Company.

g The financial statements have been prepared in

accordance with approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984, the Insurance Ordinance, 2000 and SEC (Insurance) Rules, 2002.

g Appropriate accounting policies have been consistently

applied and accounting estimates are based on reasonable and prudent judgment. Applicable accounting standards were followed in preparation of the financial statements of the Company on a going concern basis for the financial year ended December 31,2014, which present fairly the state of affairs, results of operations, profits, cash flows and changes in equity of the Company for the year under review.

g Proper, accurate and adequate accounting records

have been maintained by the Company in accordance with the Companies Ordinance, 1984.

Internal Audit Function

g The internal control framework has been effectively

implemented through outsourcing the internal audit function to A.F. Ferguson & Co., Chartered Accountants. The Company's system of internal control is sound in design and has been continually evaluated for effectiveness and control.

g The Committee has ensured the achievement of

operational, compliance and financial reporting objectives, safeguarding of the assets of the Company through effective financial, operational and compliance controls and risk management at all levels within the Company.

g Coordination between the external and internal

auditors was facilitated to ensure efficiency and contribution to the Company's objectives, including a reliable financial reporting system and compliance with laws and regulations.

External Auditors

g The statutory auditors of the company, M/s. KPMG

Taseer Hadi & Co., Chartered Accountants, have completed their audit of the Company's financial statements and the Statement of Compliance with the Code of Corporate Governance for the year ended December 31, 2014.

g The Management Letter is required to be submitted

within 45 days of the date of the Auditors' Report on the financial statements under the listing regulations and shall therefore accordingly be discussed in the next Committee meeting.

g The Audit firm has been given a satisfactory rating

under the Quality Control Review Programme of the Institute of Chartered Accountants of Pakistan (ICAP) and the firms is fully compliant with the International Federation of Accountants (IFAC) Guidelines on Code of Ethics, as adopted by the ICAP. The statutory auditors have indicated their willingness to continue as auditors.

g Being eligible for reappointment under listing regulations,

the Board Audit Committee recommends the appointment of M/s. KPMG Taseer Hadi & Co. as statutory auditors for the financial year ending December 31, 2015 on terms approved by the Board of Directors.

Aly Noormahomed Rattansey Chairman, Board Audit Committee Karachi

12 February 2015

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We have reviewed the enclosed Statement of Compliance with the best practices contained in the Code of Corporate Governance (the Code) prepared by the Board of Directors of Jubilee General Insurance Company Limited (the Company) for the year ended 31 December 2014 to comply with the requirements of Listing Regulation Nos. 35 of the Karachi and Lahore Stock Exchanges where the Company is listed, and the Code of Corporate Governance applicable to listed insurance companies issued under SRO 68(I)/2003, by the Securities and Exchange Commission of Pakistan.

The responsibility for compliance with the Code is that of the Board of Directors of the Company. Our responsibility is to review, to the extent where such compliance can be objectively verified, whether the Statement of Compliance reflects the status of the Company's compliance with the provisions of the Code and report if it does not and to highlight any non-compliance with the requirements of the Code. A review is limited primarily to inquiries of the Company's personnel and review of various documents prepared by the Company to comply with the Code. As a part of our audit of the financial statements we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. We are not required to consider whether the Board of Directors' statement on internal control covers all risks and controls or to form an opinion on the effectiveness of such internal controls, the Company's corporate governance procedures and risks.

The Code requires the Company to place before the Audit Committee, and upon recommendation of the Audit Committee, place before the Board of Directors for their review and approval its related party transactions distinguishing between transactions carried out on terms equivalent to those that prevail in arm's length transactions and transactions which are not executed at arm's length price and recording proper justification for using such alternate pricing mechanism. We are only required and have ensured compliance of this requirement to the extent of the approval of the related party transactions by the Board of Directors upon recommendation of the Audit Committee. We have not carried out any procedures to determine whether the related party transactions were undertaken at arm's length price or not.

Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Company's compliance, in all material respects, with the best practices contained in the Code as applicable to the Company for the year ended 31 December 2014.

Date: 12 February 2015 Karachi