Friday, March 31, 2017 Challenge of Champions …

1 It is the biggest-ever technology M&A transaction in the Arab world according to Goldman Sachs, the global investment-banking and financial-services week s deal, among Mergers and Acquisitions in the world of Arabian business, could remain as a watershed moment of digital I wonder what the post-acquisition strategy could make , which is taken over by Amazon. Will it remain Or will it transform into Amazon Arabia?But let s look at the background a is the world s biggest electronic commerce and cloud computing company. And is the Arab-world s biggest English-Arabic e-commerce platform for online began operations in 1994. It had started by selling just books online, but today it s selling almost everything!

2 Started in 2005. It started originally as an auction site for Middle East, but today it s selling a host of things, especially s cross border trade - which involves more than 1 billion orders, fulfilled by sellers in 100 countries to 185 countries - has more than doubled stocks million items on its website and generates about 50 million monthly visits, and has been selling well in six GCC countries and Egypt. The potential of eCommerce in the Gulf is very high and by 2020 eCommerce sales across GCC countries are expected to touch $ billion ( ), which will be one of the highest growth across this industry worldwide.

3 Sarwant Singh, senior partner and practice director of Frost & Sullivan had said this during a presentation at the summit for Growth, Innovation and Leadership (GIL) 2015, in industry experts had predicted, we see competition getting intense. In November 2016, Emaar Properties announced they are launching a new online retailer, !This new $1 billion venture is boasting it will sell 20 million products - more than twice the number of products on - and is expected to be launched anytime , for , while being in a high market-growth industry was a huge positive, the soon-to-emerge new challenger in the form of was a huge , therefore, it may not have augured well, for its there lies the rationale for this decision.

4 Selling its 100% stake to a known global leader like Amazon must have seemed an ideal choice, compared to being beaten by sheer financial interestingly, Emaar Properties had also offered to buy out for $800 million! But , which was valued at $ 1 billion last year, had turned it back to our question about what will happen to I feel, very soon we will hear less of and more of Amazon , by acquisition, companies get huge readymade infrastructure, large highly-skilled workforce, and a strong-and-sustainable customer base, does the name matter? What s in a name?HP acquired rival computer manufacturer Compaq. Do we see Compaq computers anymore? Apple acquired the rival music technology Lala.

5 Do we hear of Lala anymore? No. We only hear of iTunes. Kill a Brand, Keep a Customer encourages the title of a Harvard Business Review article (HBR, December 2003).And while that may not always be a good idea, it has worked well for many marketing in the huge Indian market where Amazon entered late, while Flipkart took away the cream of online customers and unlike the Chinese market where Alibaba is ruling, here in this Arabian market, purchasing was clearly a great decision for them. 6 Friday, March 31, 2017 2016 2015 ASSETS Cash and cash equivalents 3,916,421 5,376,481 Insurance and reinsurance receivables 7,729,055 11,721,864 Reinsurance assets 13,621,882 18,775,154 Due from related parties 1,903,218 2,108,796 Available for sale investments 8,794,264 8,229,722 Deferred policy acquisition costs 1,005,277 1,137,277 Prepayments and other receivables 602,077 468,685 Furniture and equipment - 33,195 Total assets 37,572,194 47,851.

6 174 Liabilities and Head Office funds LIABILITIES Insurance liabilities 23,691,332 30,882,326 Reinsurance balances payable 8,439,558 8,737,517 Due to related parties 845,746 440,122 Deferred reinsurance commission 743,145 738,118 Accruals and other liabilities 1,188,411 2,727,718 Employees end of service benefits 142,728 130,602 Total liabilities 35,050,920 43,656,403 Head Office funds 2,521,274 4,194,771 Total liabilities and Head Office funds 37,572,194 47,851,174 Year ended 31 December 2016 2015 Insurance premiums earned Gross 15,437,050 17,674,385 Reinsurers share of insurance premiums earned (11,562,929) (11,100,553)Insurance premium earned Net 3,874,121 6,573,832 Claims incurred Gross 631,767 (4,003,368)Reinsurers share of claims incurred (957,131) 1,858,691 Claims incurred Net (325,364) (2,144,677)Staff costs (1,090,160) (1,508,475)General and administration expenses (2,373,506) (2,137,005)Acquisition costs incurred (2,033,850) (2,441,842)

7 Commission on reinsurance ceded 1,445,179 1,567,391 Provision for doubtful debts charge (1,366,573) (714,982)Underwriting results (1,870,153) (805,758)Investment income 209,605 170,872 Foreign exchange (loss) / gain (998) 568,878 208,607 739,750 Loss for the year (1,661,546) (66,008) Other comprehensive loss Items that may be reclassified tostatement of incomeMovement in fair value of available for sale investments Net (10,215) (84,167)Realised gain on sale available for investments (1,736) (2,284)Total other comprehensive loss for the year (11,951) (86,451)Total comprehensive loss for the year (1,673,497) (152,459)ACE American Insurance CompanyBahrain BranchStatement of Financial Position(All amounts expressed in Bahraini Dinars unless otherwise stated)ACE American Insurance Company, Bahrain Branch is a core operating company within the Chubb Group and has a financial strength rating of AA from Standard and Poor s.

8 As at Chubb Group had total assets of USD160 complete audited financial statements are available and can be obtained from our offices in BahrainAs at 31 DecemberJoel IndrupatiWide AngleAmazon - : A Timely Takeover?(The views and opinions expressed in this article are those of the author and do not necessarily reflect the policy or position of this newspaper.)Missing PetsMIA - Female Husky, 6 mos, brown and white wblue eyes, wearing pink collar - no ID, wasfrightened by stray dogs and ran away, last seenin Jurdab being chased, 22/3/17. 36366162 SILVER - Male Himalayan, 6yrs, responds to name, brown area on mouth, not wearing collar or ID, Muharraq (Municipality Road close to Midway Supermarket), 11/3/17. 33229248 SOLSTICE - Female Husky, 2 yrs, may not respondto name, very shy/nervous, just adopted andtaking home/ran away on first walk/collar came off,off Budaiya Road (last seen in Shakura/Abu Saiba),7/1/17, BD250 REWARD for safe return.

9 39288221 BALTHAZAR - Male Persian, 4 mos, dark grey wyellow eyes, not wearing collar or ID, Jurdab/ Isatown, 19/12/16. 39714188 SOFIE - Female Persian, 6-7 yrs, gray and whitehair, door left open, not wearing collar or ID,Exhibition area (near Gulfmart), 20/3 - Female Golden Retriever/Husky mix, 1 yr3 mos, right eye has a little blue in it, bit of henna on top of head, black collar w red/blue/green tribal design - no ID, Budaiya (near Alsalam School),2/12/16. 36116552 Challenge of Champions BTAC-C 2017 The Challenge of Champions , Bahrain Toastmasters Annual Contest of Division C of District 20, will be held today at Bahrain Society of Engineers in Jufair from BTAC-C 2017 will showcase the performance of Champions who have progressed through clubs and area levels from four different to Supply food ration to GPZ workersThe Indian Community Relief Fund (ICRF) is providing basic provisions to GPZ workers tomorrow.

10 This is the second such programme being organised by ICRF for the workers of GPZ. Last week ICRF had provided food ration including groceries and vegetables to about 520 workers.