Islamic Arab Insurance : Financial statements for 30 Sept 2015

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D Islamic Arab Insurance Co.

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(Salama) and its subsidiaries

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Condensed consolidated interim financial information

for the nine-month period ended 30 September 2015

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KPMG Lower Gulf Limited

Level 13, Boulevard Plaza Tower One Mohammed Bin Rashid Boulevard PO Box 3800

Downtown Dubai United Arab Emirates

Telephone [phone]

Fax [phone]

Website www.ae-kpmg.com

Independent auditors' report on review of condensed consolidated interim financial information

The Shareholders

Islamic Arab Insurance Co. (Salama) and its subsidiaries

Introduction

We have reviewed the accompanying 30 September 2015 condensed consolidated interim financial information of Islamic Arab Insurance Co. (Salama) ('the Company') and its subsidiaries (collectively referred to as 'the Group'), consisting of:

• the condensed consolidated interim statement of financial position as at 30 September 2015;

• the condensed consolidated interim statement of profit or loss for the three-month and nine-month period ended 30 September 2015;

• the condensed consolidated interim statement of comprehensive income for the three-month and nine­ month period ended 30 September 2015;

• the condensed consolidated interim statement of changes in equity for the nine-month period ended 30 September 2015;

• the condensed consolidated interim statement of cash flows for the nine-month period ended 30 September 2015; and

• notes to the condensed consolidated interim financial information.

Management is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with IAS 34, 'Interim Financial Reporting'. Our responsibility is to express a conclusion on this condensed consolidated interim 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 consolidated interim 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.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying 30 September 201 5 condensed consolidated interim financial information is not prepared, in all material respects, in accordance with lAS 34, 'Interim Financial Reporting'.

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KPMG Lower Gulf Limited

Muhammad Tariq Registration No: 793

1 2 NOV 2015

KPMG Lower Gulf Limited. registered in the UAE and a member firmof the KPMG network of independent member firms affiliated with KPMG International Cooperative ('KPMG International').a Swiss entity.All rights reserved

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l Islamic Arab Insurance Co. (Salama) and its subsidiaries

n

Condensed consolidated interim statement of profit or loss

for the nine-month period ended 30 September 2015

Nine-month Nine-month Three-month Three-month

period ended 30 September	period ended 30 September	period ended 30 September	period ended 30 September
2015	2014	2015	2014
Note	AED'OOO	AED'OOO	AED'OOO	AED'OOO
(Un-audited)	(Un-audited)	(Un-audited)	(Un-audited)
(Restated)	(Restated)
CONTINUING OPERATIONS
UNDERWRITING RESULTS
Undenvriting income
Gross written contributions	18	683,093	561,314	242,681	198,539
Less: reinsurance and retakaful contributions ceded	(166,287)	(135,123)	(50,062)	(40,296)
Net contributions	516,806	426,191	192,619	158,243
Net movement in unearned contributions	(6,799)	(29, 652)	3,366	(11,776)
Contributions earned	18	510,007	396,539	195,985	146,467
Commission received on ceded reinsurance and retakaful	18	32,336	16, 704	11,826	5,794
18	542,343	413,243	207,811	152,261
Undenvriting expenses
Gross claims paid	338,229	253,545	117,184	83,91 1
Less: reinsurance and retakaful share of claims paid	(89,131)	(67,299)	(26,627)	(26,419)
Net claims paid	249,098	186,246	90,557	57,492
Net movement in outstanding claims and technical reserve for family takaful	45, 981	32,685	35,851	30, 105
Claims incurred	18	295,079	218,931	126,408	87,597
Commission paid and other costs	/8	171,009	120,056	63,555	42,540
466,088	338,987	189,963	130,137
Net undenvriting income	18	76,255	74,256	17,848	22,124
Income from other sources
Income from investments	10,200	23, 830	71	6,559
Other income	16,781	11,387	506	3,230
103,236	109,473	18,425	31,913
Expenses
General, administrative and other expenses	(95,871)	(94,605)	(28,247)	(25,761)
Financial expenses I (income)	(805)	(1,092)	(246)	(367)
Impairment on goodwill	/3	(27,043)		(27,043)
Net profit before tax for the period	(20,483)	13,776	(37,111)	5,785
Taxation - current	(8,783)	(13,739)	(3,074)	(5,304)
Net profit after tax for the period before
policyholders' distribution	(29,266)	37	(40,185)	481
Distribution to policyholders of Company	(1,086)	(1,086)
Policyholders' surplus
Net profit after tax and distribution to policyh olders
for the period from continuing operations	(30,352)	37	(41,271)	481

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DISCONTINUED OPERATIONS (Loss) I profit from discontinued operations	13	(48, 806)	21,565 (6,570)	31,778
Net (loss) I profit after tax and distribution to policyholders for the period	(79,158)	21,602 (47,841)	32,259

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n Islamic Arab Insurance Co. (Salama) and its subsidiaries

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Condensed consolidated interim statement of profit or loss (continued)

for the nine-monthperiod ended 30 September 2015

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Nine-month Nine-month Three-month Three-month period ended period ended period ended period ended 30 September 30 September 30 September 30 September

2015 2014 2015 2014

0

Nole AED'OOO AED'OOO AED'OOO AED'OOO

(Un-audited) (Un-audited) (Un-audited) (Un-audited)

(Restated) (Restated)

0

Net (loss) I profit after tax and distribution to policyholders for the period

(79,158)

21,602

(47,841) 32,259

n Attributable to:

Shareholders (84,628) 16,031 (49,322) 31,702

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Non-controlling interest

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(Loss) I earnings per share (AED) (Note 16)

Earnings I (loss) per share (AED) - continuing operations

5,470 5,571 1,481 557 (79,158) 2 1,602 (47,841) 32,259

(0.071) 0.013 (0.042) 0.027

(0.030) (0.005) (0.036) (0.000 1)

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The notes on pages 9 to 21 form an integral part of these condensed consolidated interim financial statements.

' The independent auditors' report on review of condensed consolidated interim financial information is set out on page I .

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