GOODLIFE ASSURANCE COMPANY LTD

CHAIRMAN’S REPORT

Welcome to the Twentieth Annual General meeting of GoodLife Assurance Company

Ltd. In spite of continuing economic recession and other problems in the Insurance Industry,

i am happy to tell you that your Insurance company had a seasonably good year.

Profit for the year

The unaudited results have been extremely encouraging with profit from operations

reaching $18.2M compared to $14M or a $29.7 per cent increase over the same period last

year. Premium income exceeded previous year-to-date by 19.2% which largely a result of the

increase in new business and overseas expansion. This has also contributed to the increase in

operating expenses resulting from new business acquisition costs.

Associated Companies

Our Associated Company, NEMLIFE, continues to show excellent results. We expect this

trend to continue in the future providing we have no major problems for the remainder of this

year.

Problems in the industry

Historically, the private insurance business has gone throiugh cycles of profit and loss

keyed to ups and downs in the financial markets.When interest rates fall, investment

diminishes and the cost of sales must rely more heavily on income from premiums. This we

have done to a large extent.

 Our problems during this period were worsened by the trend toward more claims, more

lawsuits and higher awards for damages. To settle these claims, insurers are having to pay out

far more than they had anticipated. To get well insurers are now boosting premiums or

refusing to write policies for types of insurance in which future claims may be hard to

predict.

Conclusion

In Conclusion, I take this opportunity to express the thanks of the board and the

shareholders to all members of staff for their hard work during the year

Projects

The Construction of the Towers Apartments and the Spanish Town Courthouses in well

advanced and it is expected that these projects will be completed by the end of the year.