Dubai Islamic Insurance & Reinsurance Aman : Financial statements for the First QTR of 2024

Dubai Islamic Insurance & Reinsurance Company (AMAN) (P.J.S.C)

Condensed interim consolidated financial information (Unaudited)

For the three-month period ended 31 March 2024

Dubai Islamic Insurance & Reinsurance Company (AMAN) (P.J.S.C)

Condensed interim consolidated financial information (unaudited) For the three-month period ended 31 March 2024

Table of contents

	Pages
Board of Directors' report	1
Report on review of condensed interim consolidated financial information	2
Condensed interim consolidated statement of financial position	4
Condensed interim consolidated statement of profit or loss	5
Condensed interim consolidated statement of other comprehensive income	6
Condensed interim consolidated statement of changes in equity	7
Condensed interim consolidated statement of cash flows	8
Notes to the condensed interim consolidated financial information	9

Report on review of condensed interim consolidated financial information

To The Shareholders of Dubai Islamic Insurance & Reinsurance Co. (Aman) (P.J.S.C)

Introduction

We have reviewed the accompanying condensed interim consolidated statement of financial position of Dubai Islamic Insurance & Reinsurance Co. (AMAN) (P.J.S.C) (the "Company") and its subsidiaries (collectively referred to as "the Group") as at 31 March 2024, and the related condensed interim consolidated statements of profit or loss, other comprehensive income, changes in equity, and cash flows for the three-month period then ended and other related explanatory notes. Management is responsible for the preparation and presentation of this condensed interim consolidated financial information in accordance with International Accounting Standard 34 ("IAS 34") Interim Financial Reporting. Our responsibility is to express a conclusion on this condensed interim consolidated financial information based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of condensed interim consolidated financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for qualified conclusion

The Group has not adopted the International Financial Reporting Standard (IFRS) 17, "Insurance Contracts", which became effective for annual periods beginning on or after 1 January 2023 for the preparation of this condensed interim consolidated financial information. As stated in Note 19.2 to the condensed interim consolidated financial information, the Group has not implemented the provisions of IFRS 17 on the takaful portfolio classified as held for sale - discontinued operations in this condensed interim consolidated financial information due to the shareholders' decision to exit and sell the entire insurance portfolios. However, the Group has performed a financial impact assessment on IFRS 17 and elected not to adopt the impact on the condensed interim consolidated financial information and continue to apply the provisions of IFRS 4, "Insurance Contracts". Had the Group adopted IFRS 17, total assets and total liabilities would have decreased by AED 17,368 thousand and AED 16,435 thousand, respectively, and the net loss for the period would have increased by AED 7,829 thousand. Further, due to the retrospective adoption requirement of IFRS 17, the comparative figures of total assets and total liabilities as of 31 December 2023 would have decreased by AED 27,251 thousand and AED 31,513 thousand, respectively and the net loss for the three- month period ended 31 March 2023 would have decreased by AED 25,955 thousand.

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Report on review of condensed interim consolidated financial information

To The Shareholders of Dubai Islamic Insurance & Reinsurance Co. (Aman) (P.J.S.C) (continued)

Conclusion

Based on our review, with the exception of the matter described in the preceding paragraph, nothing has come to our attention that causes us to believe that the accompanying condensed interim consolidated financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 "Interim Financial Reporting" as issued by the IASB.

Material Uncertainty Related to Going Concern

We draw attention to Note 1.1 to the condensed interim consolidated financial information, which states that as of 31 March 2024, the accumulated losses of the Group have reached AED 149,449 thousand, which represents 66% of the share capital of the Group. Further, as disclosed in note 21 to the condensed interim consolidated financial information, the Group has MCR Solvency Margin Deficit, SCR Solvency Marign Deficit and MGF Solvency Margin Deficit in solvency capital requirements as stipulated by the Central Bank of the U.A.E. by an amount of AED 132,742 thousand, AED 53,282 thousand and AED 52,742 thousand, respectively. The Group's ability to continue as a going concern depends on the successful execution of the proposed business plan, which states that the Shareholders of the Group have approved the exit of all takaful operations and the change of the status of the Group from a takaful operator to an investment Group. These factors, along with other matters set forth in Note 1.1, indicate that a material uncertainty exists that may cast doubt on the Group's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.

Emphasis of Matters

We draw attention to note 19.1 to the condensed interim consolidated financial information, which discloses information on assets that are held by a related party for the beneficial interest of the Group. Our review report is not modified in respect of this matter.

Further, we draw attention to Note 19.2 to the condensed interim consolidated financial information, which states that the entire Takaful operations have been classified as held for sale according to the requirements of IFRS 5 "Discontinued Operations and Assets Held for Sale", based on the Shareholders' special resolution issued on 6 February 2023 to approve the board of directors' decision for the Group to exit and sell its entire insurance portfolio, and authorizing the Group's Board of Directors to complete all procedures with authorities and policyholders to exit the insurance business and transform the Group's activities into an investment Group, our conclusion is not modified in respect of this matter.

GRANT THORNTON UAE

Farouk Mohamed

Registration No 86

Abu Dhabi, United Arab Emirates

30 May 2024

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Dubai Islamic Insurance & Reinsurance Company (AMAN) (P.J.S.C) Condensed interim consolidated financial information (unaudited)

Condensed interim consolidated statement of profit or loss

For the three-month period ended 31 March 2024

		Three-month period ended
	Notes	31 March 2024	31 March 2023
		AED	AED
		(Unaudited)	(Unaudited)
Attributable to Policyholders
Discontinued operations
Profit from discontinued operations - takaful operation	19.2	2,635,471	8,653,350
Attributable to Shareholders
Income
Investment (expenses)/income, net	15	(7,279,933)	487,585
Wakala fees from policyholders	14	468,115	3,152,164
Mudarib's share from policyholders	14	5,471	5,495
Other income		4,162,759	3,884
Recovery from Qard Hassan to policyholders	20	417,349	-
		(2,226,239)	3,649,128
Expenses
Policy acquisition cost		(652,805)	(5,620,407)
General and administrative expenses		(3,357,670)	(4,408,151)
Total expenses		(4,010,475)	(10,028,558)
Loss for the period from continuing operations		(6,236,714)	(6,379,430)
Profit for the period from discontinued operations		2,635,471	8,653,350
(Loss)/profit for the period before tax		(3,601,243)	2,273,920
Income tax expense		-	-
(Loss)/profit for the period after tax		(3,601,243)	2,273,920
Attributable to:
Shareholders of the Company		(6,236,714)	(6,379,430)
Policyholders - Discontinued operations		2,635,471	8,653,350
		(3,601,243)	2,273,920
Loss per share - continuing operations	16	(0.028)	(0.028)

The accompanying notes from 1 to 26 form an integral part of this condensed interim consolidated financial information.

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Dubai Islamic Insurance & Reinsurance Company (AMAN) (P.J.S.C) Condensed interim consolidated financial information (unaudited)

Condensed interim consolidated statement of other comprehensive income For the three-month period ended 31 March 2024

Three-month period ended 31 March

2024 31 March 2023

AEDAED

(Unaudited) (Unaudited)

Loss for the period attributable to shareholders of the Company

Other comprehensive income

Items that will not be reclassified subsequently to profit or loss:

Changes in fair value of equity investments carried at fair value through other comprehensive income

Other comprehensive loss for the period

Total comprehensive loss for the period

Attributable to:

Policyholders - Discontinued operations

Shareholders of the Company

Total comprehensive loss for the period

(6,236,714) (6,379,430)

(8,393,382) (11,808,961)

(8,393,382) (11,808,961)

(14,630,096) (18,188,391)

(14,630,096) (18,188,391)

2,635,471 8,653,350

(11,994,625) (9,535,041)

The accompanying notes from 1 to 26 form an integral part of this condensed interim consolidated financial information.

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Dubai Islamic Insurance & Reinsurance Company (AMAN) (P.J.S.C)

Condensed interim consolidated financial information (unaudited)

Condensed interim consolidated statement of changes in equity

For the three-month period ended 31 March 2024

						Equity
						attributable
					Investments	to
					revaluation	shareholders	Non-
	Share	Legal	General	Accumulated	reserve -	of the	controlling	Total
	capital	reserve	reserve	losses	FVOCI	Company	interests	equity
	AED	AED	AED	AED	AED	AED	AED	AED
Balance at 1 January 2023	225,750,000	6,309,669	6,309,669	(146,704,914)	(13,151,220)	78,513,204	(1,325,973)	77,187,231
Net loss for the period attributable to the
shareholders of the Company	-	-	-	(6,379,430)	-	(6,379,430)	-	(6,379,430)
Other comprehensive loss for the period	-	-	-	-	(11,808,961)	(11,808,961)	-	(11,808,961)
Total comprehensive loss for the period	-	-	-	(6,379,430)	(11,808,961)	(18,188,391)	-	(18,188,391)
Balance at 31 March 2023	225,750,000	6,309,669	6,309,669	(153,084,344)	(24,960,181)	60,324,813	(1,325,973)	58,998,840
Balance at 1 January 2024	225,750,000	6,420,521	6,420,521	(143,212,289)	(18,853,358)	76,525,395	(1,325,973)	75,199,422
Net loss for the period attributable to the
shareholders of the Company	-	-	-	(6,236,714)	-	(6,236,714)	-	(6,236,714)
Other comprehensive loss for the period	-	-	-	-	(8,393,382)	(8,393,382)	-	(8,393,382)
Total comprehensive loss for the period	-	-	-	(6,236,714)	(8,393,382)	(14,630,096)	-	(14,630,096)
Balance at 31 March 2024	225,750,000	6,420,521	6,420,521	(149,449,003)	(27,246,740)	61,895,299	(1,325,973)	60,569,326

The accompanying notes from 1 to 26 form an integral part of this condensed interim consolidated financial information.

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Dubai Islamic Insurance & Reinsurance Company (AMAN) (P.J.S.C) Condensed interim consolidated financial information (unaudited)

Condensed interim consolidated statement of cash flows

For the three-month period ended 31 March 2024

Three-month period ended

31 March 2024 31 March 2023

AEDAED

(Unaudited)(Unaudited)

OPERATING ACTIVITIES

Loss for the period

Adjustments for:

Depreciation of property and equipment

Realised loss on disposal of financial assets carried at fair value through profit or loss profit or loss (FVTPL) Unrealized gain on investments in financial assets carried at FVTPL

Provision for employees' end of service benefits

Profits on deposits

Rental income

Operating profit before working capital changes:

Working capital changes:

Prepayments and other receivables

Trade and other payables

Deferred policy acquisition costs

Due to policyholders

Cash used in operations

Employees' end of service benefits paid

Net cash (used in)/generated from operating activities

INVESTING ACTIVITIES

Purchase of property and equipment

Proceeds from financial assets measured at FVTPL Profit income received

Change in discontinued operations- takaful operations Purchase of financial assets carried at fair value through other comprehensive income (FVOCI)

Net cash generated from/(used in) investing activities

NET DECREASE IN CASH AND CASH EQUIVALENTS

Cash and cash equivalents at the beginning of the period

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (NOTE 9)

(6,236,714)	(6,379,430)
12,891	133,557
7,611,004	-
(102,500)	(350,222)
65,987	300,637
(133,455)	(41,840)
(95,116)	(117,500)
1,122,097	(6,454,798)
3,038,948	7,141,284
(26,083,706)	(9,579,972)
50,222	3,780,380
(7,687,839)	9,162,939
(29,560,278)	4,049,833
(1,893)	(2,719,479)
(29,562,171)	1,330,354
-	(155,745)
13,215,830	-
133,455	41,840
5,268,217	(36,690,174)
-	(59,404,073)
18,617,502	(96,208,152)
(10,944,669)	(94,877,798)
57,761,221	132,844,060
46,816,552	37,966,262

The accompanying notes from 1 to 26 form an integral part of this condensed interim consolidated financial information.

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