insurance company business plan

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  • 1. Energomera Insurance Company Business Plan OWNERS Alexandr Akimenko Oleg Kotov
  • 2. Page 2 of 25 I. Table of ContentsI. Table of Contents .................................................................................................................................... 2II. Executive Summary ................................................................................................................................ 3III. Business Description .............................................................................................................................. 5IV. Business Environment Analysis ............................................................................................................ 8V. Marketing Plan ....................................................................................................................................... 10VI. Operational Plan .................................................................................................................................... 12VII. Financial Plan ......................................................................................................................................... 15XI. Appendices ............................................................................................................................................. 23
  • 3. Page 3 of 25 II. Executive SummaryEnergomera Insurance Company is JSC “Energomera Corporation” captive company. It will be formed as anopen joint-stock company. This plan is written as a guide for financing, start-up and management of this newbusiness and will also serve as the basis for measurement. The following is a summary of the main points ofthis plan. Energomera Insurance Company is a start-up provided insurance services for JSC Energomera Corporation and small business companies. Attracting of the new client provided by efficient marketing plane which was made by top managers of the company and some specialists and experts who was engaged to analyze market situation and create marketing plan. The keys to success for Energomera Insurance Company are quality of business services and products, personal contact, timely and accurate service, development of one-to-one relationships, and a reputation of honesty and integrity. Energomera Insurance Company has efficient structure. It is not many employee in the company, so it is very efficient-controlled organization.1.1 ObjectivesThe main objectives Energomera Insurance Company are:• Profit - to create enough prosperity for the owner and employees to have a secure and comfortablelifestyle.• Growth - to grow the business at a rate that is both challenging and manageable.• Assistance - to assist in JSC «Energomera Corporation» further growth.1.2 MissionEnergomera Insurance Company is dedicated to providing insurance products and business services thatprovide high quality, protection, and value pricing. We wish to establish a successful cooperation with ourmother company that respects its interests and goals.1.3 Keys to Success
  • 4. Page 4 of 25The keys to the success Energomera Insurance Company are:• A high quality of business services and insurance products that are affordable, available andunderstandable.• Personal contact and service that meets or exceeds the expectations of our clients.• Services and products that are delivered with accuracy and timeliness.• Relationships with our clients that fosters renewal business.• A reputation in the community for its honesty and integrity.In conclusion, as shown in the highlights chart below, this plan projects rapid growth over the next threeyears with a profit forecasted in the second year of operation and continuing into future years of operation.Based on the realistic sales projections and conservative forecasts, Energomera Insurance Company willachieve profitability in the second year of operation. Monthly profitability is first achieved in the next year,but due to reserve fund’s accumulation and developing a customer base, the first year of operations reflect aloss. After the second year of operation, the reserve fund will reach 324 million rubles. The amount ofinsurance payments is assumed to be 150 million rubles Net profit will reach 104 million rubles.Implementing this plan, will ensure that Energomera Insurance Company becomes a profitable venture. 400000 350000 300000 Yearly net 250000 profit, thousand rubles 200000 Gross margin, thousand rubles 150000 Reserves, thousand rubles 100000 50000 0 -50000 Year 1 Year 2 Year 3
  • 5. Page 5 of 25 III. Business DescriptionEnergomera Insurance Company is a start-up company located in Stavropol, Stavropol Region. CaptiveEnergomera provides insurance services for JSC «Energomera Corporation» and small businessorganizations.Company OwnershipEnergomera Insurance Company is open joint-stock company. Authorised capital of the Company dividedinto shares 90% of which are owned by JSC «Energomera Corporation». 10% of the shares divided between 3top Managers of the company.Start-up SummaryEnergomera Insurance Company start-up costs include different kinds of expenses. Marketing Services costs include research and analysing of the market and business environment; different kinds of promotion and positioning. Website Development: professionally developed business website on the Internet. Business Cards: the printing of business cards with company logo. Brochures: development and printing of brochures for marketing the business. Exhibitions one of the most important part of our promotion. That’s why organizing of the impressive pavilion is important part of costs. Office inventory. Other costsServicesEnergomera Insurance Company provides insurance services for: its mother company - JSC «Energomera Corporation»; small business companies of the Stavropol Region.
  • 6. Page 6 of 25Depending of the companies Energomera Insurance Company provides: For JSC «Energomera Corporation» we insure Actives of the company, production lines, some trade actions and trade contracts with suppliers and customers, different kinds of risks. For small business our main insurance services are insure of trade actions and trade contracts with suppliers and customers and some kind of risks.In the future we intend to offer the following services: Making of the concrete recommendations to deal with risks. Control of the recommended actions execution and making adjustments. Risk management system in the company.Our principles of risk management: create value be an integral part of organizational processes be part of decision making explicitly address uncertainty be systematic and structured be based on the best available information be tailored take into account human factors be transparent and inclusive be dynamic, iterative and responsive to change be capable of continual improvement and enhancementBusiness Philosophy:Efficiency of work. Energomera Insurance Company should make profit not only for itself, but for everyclient.New technologies. Using of the new technologies should make Energomera Insurance Company work faster.Economic. Only economic methods of making business.Range of options. All clients can choose different kinds of services.Gain of work. Good work – good payment.Original. Original and innovation area of work and methods of work.Market. Market oriented work.
  • 7. Page 7 of 25Ease of work. Only ease atmosphere of work can create efficient nice impression.Risks. Risks – one of the main factor which we consider every day.Actual. All our work must be interesting for the market.The most important strength of Energomera Insurance Company is situation when this company is only onecompany in Stavropol Region which main specialty and alignment is small business (now we don’t speakabout JSC «Energomera Corporation»).Even if new companies choose the same business, Energomera Insurance Company would have a bigadvantage – time.Energomera Insurance Company top managers are one of the best specialists. And their skill would play greatrole in Energomera Insurance Company business.
  • 8. Page 8 of 25 IV. Business Environment AnalysisJSC «Energomera Corporation» is our mother company which is the main sphere of our activity.Joint-Stock Company “Energomera Corporation” was founded in January, 1994, in the south of Russia inStavropol. Today there are more than 6000 people working at enterprises. The Corporation consists of top-rated Russian enterprises: measuring equipment factory “Energomera”, electronic materials factory“Monocrystal” and, finally, electro-technical factory “Energomera”.Product portfolio includes complete model range of electronic devices and energy measuring systems, serviceand metrology equipment, equipment for electrochemical protection of underground pipelines fromcorrosion. It has gained the leading positions in Russia in terms of sales revenue and technical level of theproducts.Here are its main financial results of activity:Results of Activity, thousand rublesRevenue 4 728 911Gross margin 1 481 493% from revenue 31 ,3Operating income 874 623% from revenue 18,4EBITDA 1 143 892% from revenue 24,2Net profit per ordinary share, rub 0,48Basic Data of Consolidated Balance Sheet, thousand rublesNon-current assets 3 344 315Fixed assets 2 526 253Intangible assets 811 887Current assets 4 186 927Funds and their equivalents 402 043Total assets 7 531 242Shareholders of the parent company capital 2 859 013Total: commitment, taking into account the minority 4 672 229interestTotal: loans and credits, including short-term 4 077 667
  • 9. Page 9 of 25Insurance market of Stavropol Region is in a complex contradictory development reflecting and reacting toall the processes occurring both in politics and economy of the region and Russia.In the 1991 as a result of de-monopolization of the insurance business the number of insurance companies’branches increased, insurance services market was created. Reinsurance and investment activities of insurancecompanies have developed. At the same time, it is worth noting that the de-monopolization was carried outwithout a clear program of market development, without sufficient prorated insurance legislation andgovernment regulation. In this regard, currently the regional insurance market is characterized by a number ofproblems: minor of the capital in insurance companies; low degree of their self-organization; weak insurance culture of the potential consumers; low purchasing power of people and companies.Stavropol Region has high percent of the compulsory insurance in the structure of insurance payments –72.3%.Insurance companies realize their activities by 41 thousand of agreements, three quarters of which wereconcluded with companies.About 50% of insured generally not satisfied with the quality of services of their insurance company. Inbasically, this dissatisfaction is associated with bureaucracy and a large number of documents that must becompleted, as well as the excessive length of proceedings. Two other fairly significant factor of dissatisfactionwith insurers - partial payment of insurance money and lack exactly those services that are needed to insured.The level of awareness about insurance is low: less than half insurance services to assess their knowledge inthis area as satisfactory.When choosing an insurance company for the insured the most important criteria are the personalrecommendations, the duration of the company in the market, clarity insurance conditions, reliability andknown company.
  • 10. Page 10 of 25 V. Marketing PlanThe main aim of our company is to keep financial resources of the JSC «Energomera Corporation» in thecompany. Another aim is to attract new clients from small business in our region. So we have two markets:JSC «Energomera Corporation» and small businesses in Stavropol Region.All in all small business market in Stavropol Region is 12.7 thousands companies. But we are interesting morein manufacturing industry. And this market is much more smaller – 1.7 thousands companies. If we couldattract a third of this companies it would be a great success.And we have big chance to achieve this aim because niche of the insurance in the small business is not verydeveloped in Stavropol region.The main idea of our marketing strategy to attract new client.Product of our company is insurance services of business sales, cargo, equipment and responsibility ofcontract members.If we draw attention on the today situation on the market, we can see that many companies make many dealswith big risk. If one side of the contract haven’t done conditions of contract, it is a big problem to restorerights of another.But if client came in our company, made a contract and choose interesting for him services, we would helphim to restore all his rights.How our company would attract clients?We must say that our business is quite new for our region and many potential clients know nothing about it.That’s why direct marketing is the most efficient way to attract clients. More than that for the initial period wecan ourselves invite those client whom we are interested in.Another way to attract clients is to take part in different conferences and fairs. Only when we could explainall pluses for our clients we can attract them to trust our company.And one of the main systems which would help us to contact with our clients would be website of ourcompany. Full information about our business, different economic articles, including articles of our managers,system question-answer and more would be available for our clients and people who are interested in.SWOT-Analysis
  • 11. Page 11 of 25If we speak about different sides of our business we must say some words about Strengths and Weaknesses.As we said one of the main strength of Energomera Insurance Company is its new services in StavropolRegion. That’s why at the beginning our company would be only one insurance company with same specialty.Another strength is that every time we have a constant client – JSC «Energomera Corporation». That’s whywe would have a real profit always.Energomera Insurance Company is not very big. That’s why it is efficient and well controlled.What about weaknesses? The main weakness is that Energomera Insurance Company is a new company andwe should do big work to attract new clients.But Energomera Insurance Company has real opportunities to open new services if it would be necessary.Real opportunities of growth are other strengths.Main threats of our company depend mainly on the economic and political situation. Different crises or newlaws can make big organization problem.Calculation of expenses on marketing campaign# Type of marketing Quantity per Price, rub Costs, rub year, pcs. 1 Web-site 1 40 000 40 000 2 Brochures 200 11 2 200 3 Business cards 1000 2 2 810 4 Exhibitions 4 15 000 60 000 TOTAL: 105 010
  • 12. Page 12 of 25 VI. Operational PlanLocationThe office of Energomera Insurance Company will be situated in the Stavropol business centre. Requiredspace is going to be 192 m2. There is going to be 3 private offices for chief officers, 3 rooms for managers, 1reception room, 1 canteen, 1 WC and 1 pantry. The estimated rent cost is 78 000 rubles per month,maintenance is 10 000 rubles per month, the business hours – from 9 a.m. to 7 p.m. 5 day business week.Legal EnvironmentLicensing and bonding requirements: documents confirming state registration; approved charter of the company; decision of founders on firm establishing; business plan; documents confirming payment of at least 50% of the share capital of the firm; evidence of payment of state taxes; layout of insurance reserves; rules for the types of insurance according to the insurance laws and the general conditions of the validity of deals. samples of insurance contracts and certificatesPersonnelOrganizational structure
  • 13. Page 13 of 25 Chief Executive Officer Sales Manager (agent) Chief Accounting Officer Chief Financial Officer Office Manager (agent) (2) Assistant Manager Assistant Manager Marketing Manager (agent) (agent)Chief Executive Officer - Ivan Kovalev. Ivan Kovalev was graduated from Moscow State University in1985, where he studied Economics. He has 20 years experience in insurance sphere. Before his appointmentto Energomera Insurance Company he was chief operating officer in Capital Insurance Company and prior tothat he held positions with Max Insurance Company of chief financial officer.Chief Accounting Officer – Oleg Kotov. Oleg Kotov was graduated from from Moscow State University in1998, where he studied Economics. Before his appointment to Energomera Insurance Company he was chiefaccounting officer in JSC «Energomera Corporation».Chief Financial Officer – Alexandr Akimenko. Alexandr Akimenko was graduated from Moscow StateUniversity in 1998, where he studied Economics. He has 9 year experience in financial sphere. He worked asa head of department in the Ministry of Finance.Calculations of annual payroll of the staff of Energomera Insurance Company# Post Category Number of Monthly wage, Annual payroll, rub staff units rub1 CEO Chief 1 45 000 540 0002 CAO Chief 1 40 000 480 0003 CFO Chief 1 40 000 480 0004 Office Manager Employee 2 25 000 600 0005 Marketing Manager Employee 1 20 000 240 0006 Sales Manager Employee 1 20 000 240 0007 Assistant Manager Specialist 2 15 000 360 000 Total: 9 205 000 2 940 000 Bonuses 30% of Annual Payroll 882 000 TOTAL: 3 822 000
  • 14. Page 14 of 25InventoryCalculations of depreciation deduction per yearName of equipment Cost, Standard period of Quantity of Depreciation deduction rub usage, years equipment, pcs. per year, rubApple iMac 21 55 600 5 6 66 720Apple MakBook Pro 15 50 000 4 2 25 000hp 2015 11 550 8 1 1 443Lighting system 20 000 10 1 2 000Office furniture 20 000 10 7 14 000Canteen furniture 80 000 10 1 8 000 TOTAL: 117 163The aggregate value of property of the firm will be 685150 rubles.Risk assessmentRisk assessment in insurance activityRisk factor Probability Time loss Expected Damage, taking Actions to reduce (person- damage, rub* into account the damage days) probability, rubNatural disasters 0,25 40 44 000 11 000 Creation of equalization paymentsArmed conflicts 0,20 80 88 000 17 600 Expansion of servicesFailure of 0,15 15 16 500 2 475 Penalties in contractsconditions of with contractorscontacts bycontactorsStrikes 0,10 100 110 000 11 000 Penalties in contracts with supporting firmsInsufficient 0,15 180 198 000 29 700 Informational systeminformation to form improvementa business planChanging the tax 0,15 100 110 000 16 500 Creation of equalizationcode paymentsTOTAL 1 88 275* expected damage was calculated according to the average daily labor productivity (1100 rub)
  • 15. Page 15 of 25 VII. Financial PlanThe most important part of our plan is calculation of insurance premiums of JSC «Energomera Corporation».These premiums will be the base of our insurance and financial activity. After the identification of potentialrisks we assessed them as to their potential severity of loss and to the probability of occurrence. The tablebelow is combined project of calculations of expected damages and insurance payments for the first year.# Groups of risk factors Insurance Time Expected Expected Damage, taking rates loss physical damage, into account the (person- damage, thousand probability and days) thousand rubles * insurance rates, rubles thousand rubles1 Industry risks: 0,50% 3 000 - 2490000 12 450  supply and demand fluctuations;  sales and profit decline;  competitors positions strengthen;2 Country and regional risks 0,50% 4 400 - 3 652 000 18 2603 Financial risks: 1,90% 4 500 - 3 735 000 70 965  currency risks;  changing of interest rate;  inflation;  timeliness of consumers’ payments;4 Legal risks: 0,50% 3 500 - 2 905 000 14 525  imperfection of Russian legal system;  imperfection of judicial remedies;  unreasonable actions of state institutions;5 Production risks 1,90% 1 100 4 184 000 5 097 000 96 843  spoilage;  production breaks;6 Property risks 1,50% 1 900 2 526 253 4 103 253 61 5487 Life insurance 1,00% 2 200 - 1 826 000 18 260 TOTAL: 292 851* Expected damage was taken according to the average daily labor productivity (830 rub) and expected physical damage.
  • 16. Page 16 of 25To ensure that the implementation of insurance obligations of insurance company on such terms andconditions established by the legislation of the Russian Federation, we will form the following insurancereserves: 1. Life insurance reserve 2. Unearned premiums reserve 3. Losses reserveInsurance reserves formed according to the methods of forming insurance reserves, regulated by FederalService for Insurance Supervision. Reserves are determined on the basis of information on the flow ofinsurance premiums, pay structures and other indicators of the insurance company.Insurance reserves structure for the first year (in thousand rubles):Сost item:Life insurance reserve 59337Unearned premiums reserve 77656Losses reserve 156976TOTAL: 29396912-Month Profit and Loss ProjectionBased on the realistic sales projections and conservative forecasts, Energomera Insurance Company willachieve profitability in the second year of operation. Monthly profitability is first achieved in the next year,but due to reserve fund’s accumulation and developing a customer base, the first year of operations reflect aloss. Net Profit Monthly, thousand rubles 0 -500 -1000 -1500 -2000
  • 17. Page 17 of 25 Gross Margin Monthly, thousand rubles 0 -500 -1000 -1500Three-Year Profit ProjectionAfter the second year of operation, the reserve fund will increase on 10% and reach 324 million rubles. Theamount of insurance payments is assumed to be 150 million rubles Net profit will reach 104 million rubles.In the second year of operation, the reserve fund will increase on 11% and reach 360 million rubles. Theamount of insurance payments is assumed to be 165 million rubles Net profit will reach 104 million rubles. Net Profit Yearly, thousand rubles 140000 120000 100000 80000 60000 40000 20000 0 -20000 Year 1 Year 2 Year 3
  • 18. Page 18 of 25 Gross Margin Yearly, thousand rubles 200000 150000 100000 50000 0 Year 1 Year 2 Year 3 -50000 Reserve Funds Yearly, thousand rubles 400000 350000 300000 250000 Losses reserve 200000 Unearned premiums reserve 150000 Life insurance reserve 100000 50000 0 Year 1 Year 2 Year 3# Indicators Year 1 Year 2 Year 31 Income from insurance 293 969 000 324 372 100 359 939 710 premiums1.1. Insurance premiums from 292 851 000 322 136 100 354 349 710 Energomera Corporation1.2. Insurance premiums from local 1 118 000 2 236 000 5 590 000 companies
  • 19. Page 19 of 252 Expenses2.1. Insurance payments - 150 000 000 165 000 0002.2. Rent payments 936 000 945 360 954 8132.3. Depreciation 117 163 117 163 117 1632.4. Salaries and bonuses 3 822 000 4 204 200 4 624 6202.5. Marketing 105 000 105 000 105 0002.6. Other costs 36 000 7 736 000 36 000 Total Operating Expenses 5 016 163 163 107 723 170 837 5963 Reserves 293 969 000 324 372 100 359 939 7103.1. Life insurance reserve 59 337 000 65 473 799 72 653 0433.2. Unearned premiums reserve 77 656 000 85 687 401 95 083 0803.3. Losses reserve 156 976 000 173 210 899 192 203 5854 Taxes 1 351 403 27 657 428 32 339 2204.1. Social tax 1 337 700 1 471 470 1 618 6174.2. Property tax 13 703 13 703 13 7034.3. Profits tax 0 26 172 255 30 706 9005 Gross margin -5 016 163 130 861 277 153 534 5035.1 Gross margin,% -2% 40% 43%6 Net profit -6 367 566 103 203 848 121 195 2826.1 Net profit, % -2% 32% 34%Projected Cash FlowStart-up costs come to 69 million rubles of which 62 million rubles are Authorised capital which will be on90% financed by JSC “Energomera Corporation” and on 10% by the Energomera Insurance Company topmanagers. 7 million rubles will be borrowed from bank.
  • 20. Page 20 of 25 Cash 7000 6000 5000 4000 3000 Net Cash Flow, thousand rubles 2000 Cash Balance, thousand rubles 1000 0 -1000 -2000 Year 1 Year 2 Year 3Cash receivedIncome from insurance premiums 293 969 000 324 372 100 359 939 710Insurance premiums from Energomera 292 851 000 322 136 100 354 349 710CorporationInsurance premiums from local companies 1 118 000 2 236 000 5 590 000Subtotal cash received 293 969 000 324 372 100 359 939 710ExpendituresExpenditures from OperationsCash spendingBill payments 5 016 163 155 407 723 170 837 596Reserve Accumulations 293 969 000 30 403 100 35 567 610Additional Cash Spent 0 0 0Taxes 1 351 403 27 657 428 32 339 220Principal Payment of Current borrowing 0 0 0Other Liabilities Principal Repayment 0 0 0Long-Term Liabilities Principal Repayment 0 7 700 000 0Purchase Other Current Assets 0 0 0Purchase Long-term Assets 0 0 0Dividends 0 0 0Subtotal Cash Spent 300 336 566 221 168 251 238 744 427Net Cash Flow -6 367 566 103 203 848 121 195 282Cash Balance 632 434 103 836 282 225 031 565
  • 21. Page 21 of 25Balance Sheet for the first year AssetsCurrent AssetsCash 369866687Accounts Receivable 0Other Current Assets 0Total Current Assets 369866687Long-term Assets 685150Depreciation 117163Total Long term Assets 802313Total Assets 370669000 Liabilities and CapitalCurrent LiabilitiesAccounts Payable 6367566Current Borrowings 0Other Current Borrowings 0Other Current LiabilitiesSubtotal Current LiabilitiesLong-term Liabilities 7700000Total Liabilities 14067566Authorised capital 62000000Retained Earnings (Reserves) 293969000Earnings 632434Total Capital 356601434Total Liabilities and Capital 370669000Break-Even AnalysisBreak-Even Point is 25 761 503 rubles
  • 22. Page 22 of 2570000600005000040000 Fixed Costs, thousand30000 rubles20000 Variable Costs, thousand rubles10000 0
  • 23. Page 23 of 25 VIII. Appendices Pro Forma Profit and Loss# Indicators Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month TOTAL: 10 11 12 1 Income from insurance 24414250 24439250 24449250 24482250 24495250 24492250 24505250 24526250 24539250 24529250 24544250 24552250 293969000 premiums1.1. Insurance premiums 24404250 24404250 24404250 24404250 24404250 24404250 24404250 24404250 24404250 24404250 24404250 24404250 292851000 from JSC «Energomera Corporation»1.2. Insurance premiums 10000 35000 45000 78000 91000 88000 101000 122000 135000 125000 140000 148000 1118000 from local companies 2 Expenses2.1. Insurance payments - - - - - - - - - - - - -2.2. Rent payments 78000 78000 78000 78000 78000 78000 78000 78000 78000 78000 78000 78000 9360002.3. Depreciation 9763,583 9763,583 9763,583 9763,583 9763,583 9763,583 9763,583 9763,583 9763,583 9763,583 9763,583 9763,583 117 1632.4. Salaries and bonuses 245000 245000 245000 245000 245000 245000 245000 245000 245000 245000 245000 1127000 3 822 0002.5. Marketing 8750 8750 8750 8750 8750 8750 8750 8750 8750 8750 8750 8750 1050002.6. Other costs 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 360002.7. Total Operating 344513,6 344513,6 344513,6 344513,6 344513,6 344513,6 344513,6 344513,6 344513,6 344513,6 344513,6 1226514 5016163 Expenses 3 Reserves 24414250 24439250 24449250 24482250 24495250 24492250 24505250 24526250 24539250 24529250 24544250 24552250 2939690003.1. Life insurance reserve 4927963 4933009 4935028 4941689 4944313 4943707 4946331 4950570 4953194 4951175 4954203 4955818 593370003.2. Unearned premiums 6449364 6455968 6458609 6467327 6470761 6469968 6473403 6478950 6482384 6479743 6483705 6485818 77656000 reserve3.3. Losses reserve 13036923 13050273 13055613 13073235 13080176 13078574 13085516 13096730 13103672 13098332 13106342 13110614 156976000 4 Taxes 85750 85750 85750 85750 85750 85750 85750 85750 85750 85750 85750 408153 13514034.1. Social tax 85750 85750 85750 85750 85750 85750 85750 85750 85750 85750 85750 394450 13377004.2. Property tax 0 0 0 0 0 0 0 0 0 0 0 13703 137034.3. Profits tax 0 0 0 0 0 0 0 0 0 0 0 0 0 5 Gross margin -344514 -344514 -344514 -344514 -344514 -344514 -344514 -344514 -344514 -344514 -344514 -1226514 -5016163 6 Net profit -430264 -430264 -430264 -430264 -430264 -430264 -430264 -430264 -430264 -430264 -430264 -1634667 -6367566
  • 24. Page 24 of 25 Pro Forma Cash FlowIndicators Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12Cash receivedIncome from insurance 24414250 24439250 24449250 24482250 24495250 24492250 24505250 24526250 24539250 24529250 24544250 24552250premiumsInsurance premiums from 24404250 24404250 24404250 24404250 24404250 24404250 24404250 24404250 24404250 24404250 24404250 24404250Energomera CorporationInsurance premiums from 10000 35000 45000 78000 91000 88000 101000 122000 135000 125000 140000 148000local companiesSubtotal cash received 24414250 24439250 24449250 24482250 24495250 24492250 24505250 24526250 24539250 24529250 24544250 24552250ExpendituresExpenditures from OperationsCash spendingBill payments 344513,6 344513,6 344513,6 344513,6 344513,6 344513,6 344513,6 344513,6 344513,6 344513,6 344513,6 1226514Reserve Accumulations 24414250 24439250 24449250 24482250 24495250 24492250 24505250 24526250 24539250 24529250 24544250 24552250Additional Cash Spent 0 0 0 0 0 0 0 0 0 0 0 0Taxes 85750 85750 85750 85750 85750 85750 85750 85750 85750 85750 85750 408153Principal Payment of 0 0 0 0 0 0 0 0 0 0 0 0Current borrowingOther Liabilities Principal 0 0 0 0 0 0 0 0 0 0 0 0RepaymentLong-Term Liabilities 0 0 0 0 0 0 0 0 0 0 0 0Principal RepaymentPurchase Other Current 0 0 0 0 0 0 0 0 0 0 0 0AssetsPurchase Long-term Assets 0 0 0 0 0 0 0 0 0 0 0 0Dividends 0 0 0 0 0 0 0 0 0 0 0 0Subtotal Cash Spent 24844514 24869514 24879514 24912514 24925514 24922514 24935514 24956514 24969514 24959514 24974514 26186917Net Cash Flow -430264 -430264 -430264 -430264 -430264 -430264 -430264 -430264 -430264 -430264 -430264 -1634667Cash Balance 6569736 6139473 5709209 5278946 4848682 4418419 3988155 3557891 3127628 2697364 2267101 632434
  • 25. Page 25 of 25Booklets