Polestar Insurance Company was established against a background of dynamic growth in national economy, with forward momentum gathered over recent years, followed by rise in the need of individuals and entities for secure and wider insurance coverage combined with heightened insurance awareness among the community.

Polestar’s cover initially comprised fire, engineering and credit, but thus far has been extended to further interests like crop, fruit, aquaculture and travel, thereby ever broadening our overall customer base and market share.

With ethical standards such as honesty and equal opportunity flowing into its every business decision, Polestar has built its early reputation among the masses and has grown into a prominent player on its values of expertise, quality and sustainability under direct supervision of experienced and skilled team leading qualified underwriters with professional career.

Polestar is determined to live up to the expectations of people and entities, and repay them for every support they have lent to our development by delivering “Insurance for the Masses” in all days to come.

On behalf of the Board of Directors and on my own behalf, it gives me an immense pleasure to present our Company’s Annual Report for the financial year ended 31st December 2019 as well as to review the performance of our Company during the financial year.

BUSINESS ENVIRONMENT

The same as previous years, 2019 can be described as a year of economic development and growth in our country. 2019 was a historical year when our state and people have greatly demonstrated their indefatigable valour and tremendous potentiality while proudly advancing and leaping in the difficult situation true to the appeal of the Party to open up a great period of upsurge in socialist construction holding higher the unfurled banner of self-reliance.

Last year, there has been a drive of putting the overall national economy on a new high stage with a main emphasis put on accomplishing the sustained economic development, ensuring the local production of equipment, raw and other materials and revitalizing production by boosting the capability of independent development of the country. A new fabulous high rate in construction sector has been ensured throughout the country to build many other structures of lasting significance and beautiful socialist villages including second-stage project of Samjiyon City, Jungphyong Vegetable Greenhouse Farm and the Tree Nursery, the Yangdok Hot Spring Resort and the Phalhyang Dam of the Orangchon Power Station, remarkably demonstrating the might and development potentials of the country. A trend of remarkable growth in all sectors of the national economy and construction boom on the national scale have continued giving a major increase to the fire and engineering premium.

BUSINESS UNDERWRITING FORMANCE

During the period under review, the Company recorded a 13% growth in Gross Written Premium Income from KPW 2,842,105,037 in 2018 to KPW 3,213,157,061 in 2019, largely driven by significant increase in premiums written under Engineering Insurance segment, almost doubling by 93%. A healthy growth rate of between 11% and 2% was achieved in Fire and Credit. Agriculture was the only area where the growth rate was below 2%. The Company continues to perform consistently year on year with the average growth of premium income, for four consecutive years, which is an indicator of the sustainable development of the Company.

The Company's claims payment rose significantly from KPW 3,057,030,319 in 2019 to KPW 1,721,554,005 an increase of 77.57%. In 2019, there were a number of huge claims which were made against the Company following Typhoon No.13 that hit some parts of the country. As a consequence the claims paid during the year were significantly higher than the previous years.

While this sharp rise in claims cost is of concern, I am happy to report that our company met all its claims obligations to their customers promptly and without a single borrowing, thereby receiving wide applause from its policyholders and the society.

APPRECIATION

We are bigger: in business, in products, in customers, in trust.

Naturally, no these results would be possible without trust from our clients, to whom we are very grateful for loyalty and support. I would like to specially express my appreciation to each and every one of our business partners, particularly our agents, brokers, customers for their precious and sincere dedicated efforts and hard work which contributed to the excellent results in 2019.

I would also like to take this opportunity to pay tribute to each and every member of the Company working with great dedication for their spirit in servicing our esteemed customers.

OUTLOOK

In 2020, we will focus our efforts on a stable business growth and we will also continue to seek out new opportunities, working hard to develop our Company range of products.

Fire and Agriculture insurance remains a key part of our business and we will continue to develop and diversify these products and processes to fulfill the needs of our customers.

We expect 2020 to be a positive year for the Company. We will maintain our policy of quality and increasing our volumes of premiums throughout the country.

Kim Kyong Hun

President, Polestar Insurance Company

- Head office: Pyongyang

- Regional branches: 11(Pyongyang, Phyongsong, Sinuiju, Kanggye, Haeju, Sariwon, Wonsan, Hamhung, Chongjin, Hyesan, Nampho)

- Distribution channels: 108 local agencies active across DPRK

With its service network widened throughout the country, Polestar has made itself more proximate and accessible to applicants and consumers. It is tapping into this previously distant customer-base thus ever-broadening its experience at the same time.

Polestar demonstrates high levels of appreciation and trust towards its employees, who with their diverse qualifications and personalities ensure our business' success.

Utmost importance is given to our employees as they are the ones to undertake the biggest duty in carrying out the key policies of our new business. For this reason, the primary goal of our human resources policy and practice is to identify our company's needs for personnel in line with its objectives and strategies and assist the creation of human resources that are open to change and are focused on the nearest success by recruiting high-quality people, motivating them, evaluating their performance, and encouraging interaction, communication and competition among individuals and groups.

We are running a system in which our employees are evaluated every month in line with specific performance criteria. On the basis of the results of these performance evaluations, an employee's training needs are identified and a career plan is developed.

Training has special importance at Polestar owing to the fact that, in line with the diversification of portfolio and distribution channels, increase in employment is expected to continue at a steady pace and new managerial positions need to be filled from within. Therefore, orientation training and basic insurance training are provided to new-hires; the training programs needed at any stage of their careers are identified for all employees so as to develop and equip them with the competencies called for by their positions and growing them into prospective pillars of Polestar.

Apart from managerial careers, Polestar also offers its employees to establish themselves within the company as experts.

We actively encourage intellectual curiosity at Polestar. We are proud to have innovative staff who are always open to new ideas and challenges.

"When lost in the dark, you always need a GUIDING STAR!"

Choosing a name for itself "Polestar", the company has declared its business motto as above.

Our vision is to be the leading underwriter recognized for its professionalism, integrity and innovation, making the local market as its home ground with credible and quality service!

You can wait and witness Polestar playing a guiding role in the industry for bringing you protection you can trust and security you can rely on.

- Aspiration for greater successes
- Technological innovation
- Fresh idea & approach

Polestar is a member of the Federation of Afro-Asian Insurers & Reinsurers "FAIR".

FAIR is a professional organization that is aiming at promoting cooperation among insurance and reinsurance companies in Africa and Asia through the regular exchange of information, expertise and the development of reinsurance relations.

Accessing FAIR, whose members are now more than 250 companies from 51 Afro-Asian countries, means increased opportunities for Polestar to expand its global presence and interaction with prestigious insurance and reinsurance companies and brokers from international markets.

Keeping steadfast pace in this evolving market, we are ready to reach out to all those who demand co-development in the same industry and we will always exceed expectations of all our clients and partners.