Abu Dhabi National Insurance CompanyPSC

Transcription

1 Abu Dhabi National Insurance CompanyPSC BOARD OF DIRECTORS' STATEMENT, CHIEF EXECUTIVE OFFICER'S STATEMENT AND INTERIM CONDENSED FINANCIAL STATEMENTS 30 JUNE 2015

2 Composition of Board of Directors Chairman: Vice Chairman: Members: H.E. Khalifa Mohamed AI-Kindi Sheikh Mohammed Bin Saif AI-Nehayan Shaikh Theyab Bin Tahnoon AI-Nehayan H.E. Ahmed Ali AI-Sayegh H.E. Sultan Rashid AI-Dhaheri Mr. Ghanem Ali Hamooda AI-Dhaheri Mr. Mohammed Abdulazeez AI-Mehairi Mr. Khalifa Sultan AI-Suwaidi Mr. Abdulla Khalaf AI-Otaiba Chief Executive Officer: Mr. Ahmad Idris Address: P.O. Box 839 Abu Dhabi United Arab Emirates External auditors: Ernst & Young Middle East

3 Abu Dhabi National Insurance CompanyPSC BOARD OF DIRECTORS' STATEMENT 30 JUNE 2015

4 Board of Directors' Statement For the period ended 3 O June 2015 The Board of Directors hereby presents ADNIC's statement for the six months ended so" June 2015 together with the condensed interim Financial Statements for the same period. The Board of Directors acknowledges the corrective measures and strategies being executed by the Management, focusing on selective and prudent underwriting with the aim of improving both profitability and service to our customers. Liquidity Position - ADNIC's cash and cash equivalents stood at AED 550 million as at June so" 2015, compared to AED 559 million as at December 31 st Total Investments - Total company investments including cash in time deposits, bank accounts and investment properties increased by 2% to AED 2,784 million as at June so" 2015, compared to AED 2,731 million as at December 31 st Total Assets - The total assets of the company increased by 5% to AED 5,829 million as at June 30th 2015, compared to AED 5,556 million as at December 31 st Shareholders' Equity - The Shareholders' Equity position stood at AED 1,363 million as at June 30th 2015, compared to AED 1,634 million as at December 31st Gross Technical Reserves - The Gross Technical Reserves increased by 23% to AED 3,953million as at June so" 2015, compared to AED 3,226 million as at December 31st This increase represents our prudent reserving practices to meet our gross policyholders' liabilities. Basic and Diluted Earnings Per Share - Basic and diluted loss per ordinary share stood at AED 0.80 for the first half of2015 compared to basic and diluted earnings per ordinary share of AED 0.28 for the same period in ~I Chairman of the Board of Directors

5 Abu Dhabi National Insurance CompanyPSC CHIEF EXECUTIVE OFFICER'S STATEMENT 30 JUNE 2015

6 Abu Dhabi National Insurance Company P.S.C. Chief Executive Officer's Statement For the period ended 30 June 2015 I hereby present the company's financial results for the period ended 30th June As a result of the implementation of our revised strategy including the re-underwriting of unprofitable business in line with ADNIC's selective underwriting policy, the gross premium written for this period was reduced in comparison with the same period last year. ADNIC remains amongst the strongest and most reliable business partners in the region with a strong liquidity position and solid fundamentals. The company has conducted a comprehensive review of its technical reserves, which led ADNIC to increase its reserves. As a result of this review the Company continues to apply best practices as it relates to its provisioning policy and will follow the appropriate standards in a strict manner. The change in reserving policy has impacted our earnings for the period, causing a net loss. ADNIC remains determined to return to our traditional levels of operating performance through prudent underwriting and excellent customer service. Key Financial Highlights Gross Premium Written For the six month period ended June 30, 2015, ADNIC's Gross Premium Written reduced by 9.4% to AED 1.40 billion compared to AED 1.55 billion for the same period in Premium Retention The overall premium retention ratio for the company increased to 51 % for the first half of 2015 compared to 46% for the first half of Net Underwriting Result For the first half of 2015, ADNIC reported a Net Underwriting Loss of AED 248 million compared to a Net Underwriting Profit of AED 149 million for the same period last year. Net Investment Income ADNIC's Net Investment and Other Income was AED 56 million for the first half of 2015 compared to AED 60 million for the same period last year. General and Administrative Expense As result of further strengthening the doubtful debt provision, the company reported General and Administrative Expense of AED 107 million for the first half of 2015 compared to AED 105 million for the same period last year. Net Result The company has reported a net loss of AED 299 million for the first half of 2015 compared to a net profit of AED 104 million for the same period in Appreciation I would like to thank ADNIC's Board of Directors and shareholders for their continued support, our clients and business partners for their patronage and our Executive Management and employees for their diligent efforts. Ahmad Idris Chief Executive Officer

7 Abu Dhabi National Insurance CompanyPSC INTERIM CONDENSED FINANCIAL STATEMENTS 30 JUNE 2015

8 EY Building a better working world Ernst & Young P.O. Box: th Floor, Nation Tower 2 Abu Dhabi Corniche Abu Dhabi, United Arab Emirates Tel: Fax: abudhabi@ae.ey.com ey.com/mena REPORT ON REVIEW OF INTERIM CONDENSED FINANCIAL STATEMENTS TO THE BOARD OF DIRECTORS OF ABU DHABI NATIONAL INSURANCE COMPANY PSC Introduction We have reviewed the accompanying interim condensed financial statements of Abu Dhabi National Insurance Company PSC ("the Company") as at 30 June 2015 comprising of the interim statement of financial position as at 30 June 2015, and the related interim statements of income, comprehensive income for the three-month and six-month periods ended and interim statement of changes in equity and cash flows for the six-month period then ended and explanatory notes. Management is responsible for the preparation and presentation of these interim condensed financial statements in accordance with International Financial Reporting Standard las 34 Interim Financial Reporting ("las 34"). Our responsibility is to express a conclusion on these interim condensed financial statements based on our review. Scope of review We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of 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 interim condensed financial statements are not prepared, in all material respects, in accordance with las 34. Signed by: Mohammad Mobin Khan Partner Ernst & Young Registration No August 2015 Abu Dhabi A member firm of Ernst & Young Global Limited

9 INTERIM STATEMENT OF FINANCIAL POSITION As at 30 June 2015 (unaudited) (Unaudited) (Audited) 30June 31 December Notes AED'OOO AED'OOO ASSETS Bank balances and cash Trade and other receivables Reinsurance contract assets Investments Investment properties Property and equipment TOTAL ASSETS EQUITY AND LIABILITIES Equity Share capital Legal reserve General reserve Investments revaluation reserve (Accumulated losses) retained earnings Total equity LIABILITIES Provision for employees' end of service benefits Trade and other payables Loans from a financial institution Insurance contract liabilities Total liabilities TOTAL EQUITY AND LIABILITIES Il 549, , , , ,286,356 1,847, ,450,848 1,390, , ,102 78,799 80,580 5!822!438 5,555, , , , , , , , ,201 (250,649) 45,768 1,362,938 1,634,469 26,508 25, , ,809 20, ,953,497 3,226,115 4,466,500 3,921,347 5!822A38 5,555,816 \ \. ~\ - C=::-~~?~g~=~ Chief Executive Officer The attached notes l to 13 form part of these interim condensed financial statements. 2

10 INTERIM INCOME STATEMENT For the six month period ended 30 June 2015 (unaudited) Three months ended Six months ended 30June 30 June Notes AEDOOO AED 000 AEDOOO AED 000 Underwriting revenue Gross written premium , ,459 1,401,827 1,546,651 Change in unearned premium provision 209, ,029 (194,531) (230,612) Premium income earned 544, ,488 1,207,296 1,316,039 Reinsurance premium ceded 12 (135,886) (260,432) (693,476) (828,403) Change in reinsurance share of unearned premium (104,478) (32,374) 148, ,032 Reinsurance premium ceded (240,364) (292,806) (545,076) (584,371) Net premium earned , , , ,668 Underwriting expenses Gross claims paid 12 (568,810) (377,551) (994,981) (675,005) Change in outstanding claims and IBNR provision (533,718) (7,018) (532,851) (73,276) Gross claims incurred (1,102,528) (384,569) (1,527,832) (748,281) Reinsurance share of claims paid ,960 85, , ,798 Change in reinsurance share of outstanding claims and IBNR provision 285, ,677 57,224 Reinsurance share of claims incurred 542, , , ,022 Net claims incurred 12 (560,249) (283,947) (866,905) (557,259) Commissions Commission income 12 23,643 27,883 45,384 54,069 Less: commission expenses 12 (37,025) (33,546) (74,752) (66,927) Net commission expenses (13,382) (5,663) (29,368) 02,858) Other income related to underwriting activities 12 2,587 2,505 4,844 5,276 Other expenses related to underwriting activities 12 (9,757) 00,301) (18,598) 07,845) Net other underwriting expenses (7,170) (7,796) (13,754) 02,569) Net underwriting (loss) income (276,374) 79,276 (247,807) 148,982 Net investment and other income 8 29,675 24,471 55,592 60,287 General and administrative expenses (57,118) (54,299) (106,537) 004,847) (Loss) profit for the period ( ) ( ) Basic and diluted (loss) earnings per share (AED) ) ) 0.28 The attached notes 1 to 13 form part of these interim condensed financial statements. 3

11 INTERIM STATEMENT OF COMPREHENSIVE INCOME For the six month period ended 30 June 2015 (unaudited) Three months ended Six months ended 30 June 30 June AEDOOO AED 000 AEDOOO AED 000 (Loss) profit for the period (303,817) 49,448 (298,752) 104,422 Other comprehensive income (loss) Items that will not be reclassified to statement of income: Gain on sale of investments at fair value through other comprehensive income 5,741 5,588 2,335 13,774 Changes in fair value of investments at fair value through other comprehensive income 43,360 (45,718) 24,886 15,913 Directors' remuneration (5,800) Total other comprehensive income (loss) 49,101 (40,130) 27,221 23,887 Total comprehensive (loss) income for the period ( ) 9,318 ( ) 128,309 The attached notes 1 to 13 form part of these interim condensed financial statements. 4

12 INTERIM STATEMENT OF CHANGES IN EQUITY For the six month period ended 30 June 2015 (Unaudited) Retained Investments earnings/ Share Legal General revaluation (accumulated capital reserve reserve reserve losses) Total AED'OOO AED'OOO AED'OOO AED'OOO AED'OOO AED'OOO Balance at 1 January , ,500 1,200, , ,319 2,114,665 Profit for the period 104, ,422 Other comprehensive income 15, ,887 Total comprehensive income for the period 15, , ,309 Dividend declared, approved and paid (187,500) 087,500) Balance at 30 June , ,500 1,200, , ,215 2, Balance at 1 January , , , ,201 45,768 1,634,469 Loss for the period (298,752) (298,752) Other comprehensive income 24,886 2,335 27,221 Total comprehensive loss for the period 24,886 ( ) (271,531) Balance at 30 June , , ,000 15L081 (250,642) 1,362,238 The attached notes 1 to 13 form part of these interim condensed financial statements. 5

13 INTERIM STATEMENT OF CASH FLOWS For the six month period ended 30 June 2015 (unaudited) Six months ended 30 June Notes AED'OOO AED'OOO OPERA TING ACTIVITIES (Loss) profit for the period (298,752) 104,422 Adjustments for: Net movement in unearned premiums reserve 46,131 (13,420) Change in outstanding claims and IBNR provision 532,851 73,276 Change in reinsurance share in outstanding claims and IBNR provision (290,677) (57,224) Depreciation expense 5,541 5,616 Net impairment loss (gain) on trade receivable 7,831 (481) Trade receivables written off IlO Changes in fair value of investments at fair value through profit or loss 8 (2,808) (4,554) Loss (gain) on disposal of investments at fair value through profit or loss 8 56 (10,722) Net amortization income 876 1,383 Provision for employees' end of service benefits 2,107 1,611 Loss on disposal of property and equipment lli 1 3, ,018 Working capital changes: Trade and other receivables 208,625 38,645 Trade and other payables (162,314) 79,982 Cash generated from operations 49, ,645 Employees' end of service benefits paid (1,245) (2,374) Net cash from operating activities 48, ,271 INVESTING ACTIVITIES Proceeds from sale of investments 223, ,048 Bank deposits (243,764) 168,421 Purchase of investments (254,329) (616,868) Purchase of property and equipment (4,033) (5,276) Proceeds from disposal of property and equipment 25 Payments for investment properties under development (1,700) (10,825) Net cash used in investing activities (280,797) (61,500) FINANCING ACTIVITIES Repayment of loan from a financial institution (20,777) Dividends paid (187,500) Cash used in financing activities (20,777) (187,500) NET DECREASE IN CASH AND CASH EQUIVALENTS (253,104) (32,729) Cash and cash equivalents at I January 392, ,647 CASH AND CASH EQUIVALENTS AT 30 JUNE ,918 The attached notes I to 13 form part of these interim condensed financial statements. 6

14 NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS 30 June 2015 (unaudited) 1 LEGAL STATUS AND PRINCIP AL ACTIVITIES Abu Dhabi National Insurance Company PSC (the "Company") is a public shareholding company incorporated in Abu Dhabi, United Arab Emirates, by Law No. (4) of 1972 as amended by Law No. (4) of 1974, and is governed by the provisions of the United Arab Emirates (UAE) Federal Law No. (6) of 2007 concerning Insurance Companies and agents and Federal Law NO.8 of 1984 (as amended). The Company's principal activity is the transaction of insurance and reinsurance business of all classes. The registered office of the Company is Khalifa Street, ADNIC Building, P O Box 839, Abu Dhabi, UAE. 2 STATEMENT OF COMPLIANCE The interim condensed financial statements for the six months ended 30 June 2015 have been prepared in accordance with International Accounting Standard (las) 34, Interim Financial Reporting. The interim condensed financial statements do not contain all information and disclosures required for full financial statements prepared in accordance with International Financial Reporting Standards and should be read in conjunction with the Company's annual financial statements as at 31 December In addition, results for the six-months period ended 30 June 2015 are not necessarily indicative of the results that may be expected for the financial year ending 31 December The interim condensed financial statements were approved for issuance on behalf of the Board of Directors on 12 August SIGNIFICANT ACCOUNTING POLICIES The accounting policies used in the preparation of the interim condensed financial statements are consistent with those used in the preparation of the annual financial statements for the year ended 31 December 2014, except for the adoption of the following new interpretation and amendments to standards effective as of 1 January Amendments to standards and new standards effective I January 2015: Amendments to las 19 Defined Benefit Plans: Employee Contributions Annual Improvements Cycle and Cycle The amendments to standards listed above had no significant impact on the Company's financial position or performance or disclosures. 4 ESTIMATES The preparation of these interim condensed financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these interim condensed financial statements, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation and uncertainty were the same as those that were applied to the financial statements as at and for the year ended 31 December

15 NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS 30 June 2015 (unaudited) 5 TRADE AND OTHER RECEIVABLES Trade receivables Less: impairment provision of receivables Net trade receivables Deferred commission expense Interest receivable Other receivables (Unaudited) 30June 2015 AED'OOO 660,722 (120,524) 540,198 96,925 8,187 35,433 (Audited) 31 December 2014 AED'OOO 859,064 (112,693) 746,371 98,158 7,481 45, , INSURANCE CONTRACT LIABILITIES AND RE-INSURANCE CONTRACT ASSETS (Unaudited) (Audited) 30June 31 December AED'OOO AED'OOO Insurance contract liabilities Outstanding claims Claims incurred but not reported Unearned premium reserve 1,747,320 1,328, , ,983 1,532,976 1,338,445 3,953,497 3, Re-insurance contract assets Outstanding claims Claims incurred but not reported Unearned premium reserve 1,123, , , , , ,208 2,286, ,279 Insurance liabilities - net Outstanding claims Claims incurred but not reported Unearned premium reserve 623, , , , , ,237 1,661,141 1,378,836 Unearned premium reserve includes premium deficiency reserve of gross ABD 221,095 thousand (31 December 2014: AED 153,519 thousand) and net AED 76,785 thousand (31 December 2014: ABO 43,053 thousand). 8

16 NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS 30 June 2015 (unaudited) 7 INVESTMENTS (Unaudited) 30June 2015 AED'OOO (Audited) 31 December 2014 AED'OOO Investments at fair value through other comprehensive Investments at amortised cost Investments at fair value through profit or loss income 737, , , , , , Geographical concentration of investments is as follows: Within UAE Outside UAE 644, , , , NET INVESTMENT AND OTHER INCOME (Unaudited) (Unaudited) Six month Six month period ended period ended 30June 30 June AED'OOO AED'OOO Dividend income Net rental income Net interest income on bank deposits and bonds Changes in fair value of investments at fair value through profit or loss (Loss) gain on disposal of investments at fair value through profit or loss Net other expenses 25,357 20,115 13,132 8,999 16,872 17,710 2,808 4,554 (56) 10,722 (2,521) (1,813) 55,522 60,287 9

17 NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS 30 June 2015 (unaudited) 9 BASIC AND DILUTED (LOSS) EARNINGS PER SHARE (Loss) earnings per share are calculated by dividing the (loss) profit for the period by the weighted average number of shares outstanding during the period. Diluted earnings per share are calculated by dividing the (loss) profit for the period by the weighted average number of ordinary shares outstanding during the period, adjusted for the effects of dilutive instruments. Three months ended Six months ended 30 June 30 June AED 000 AED 000 AEDOOO AED 000 (Loss) profit for the period Ordinary shares in issue throughout the period Basic and diluted (loss) earnings per share (AED) (303,817) (298,752) , , , ,000 ~ 0.13 ~ 0.28 lo RELATED PARTIES Identity of related parties Related parties comprise major shareholders, associated companies, directors and key management personnel of the Company and entities controlled, jointly controlled or significantly influenced by such parties. Government of Abu Dhabi holds 24 percent shareholding in the Company through Abu Dhabi Investment Council. Pricing policies and terms of these transactions are approved by the management. The Company maintains significant balances with these related parties which arise from commercial transactions as follows: Balances Balances with related parties at the reporting date are shown below: Directors and key Major (Unaudited) (Audited) management shareholder Others Total Total 30June 30June 30June 30June 31 December AED'OOO AED'OOO AED'OOO AED'OOO AED'OOO Trade and other receivables ~ ~ Trade and other payables - _.8.8_ ~ ~ Cash and bank balances _ ~ Investments - -- ~ ~ ~ Statutory deposits - -- ~ ~ Insurance contract liabilities 3fi6_ ~ ~ ~ Others comprise of companies controlled by the directors and other key management personnel. lo

18 NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS 30 June 2015 (unaudited) lo RELATED PARTIES continued Transactions Transactions carried out during the reporting period with related parties are shown below: Directors and key Major (Unaudited) (Unaudited) management shareholder Others Total Total 30June 30June 30June 30June 30 June AED'OOO AED'OOO AED'OOO AED'OOO AED'OOO Premium written 221 ~ ~ ~ 174,289 Claims incurred _3 ~ ~ ~ 49,377 Dividend income Interest income - -- ~ ~ 2, ~ ~ ~ An amount of AED 277 thousand have been recognized as allowances for impairment against trade and other receivables extended to related parties (2014: AED 125 thousand). Contingent liabilities were issued in favour of related parties during the period ended 30 June 2015 amounting to AED 27,781 thousand (2014: AED 21,771 thousand) Transactions with key management personnel Key management compensation is as shown below: Salaries and short term benefits Staff end of service benefits (Unaudited) Six month period ended 30June 2015 AED'OOO 8, (Unaudited) Six month period ended 30 June 2014 AED'OOO 9, , CASH AND CASH EQUIVALENTS (Unaudited) (Unaudited) 30June 30 June AED'OOO AED'OOO Cash in hand Statutory deposit Cash / call / current accounts with local UAE banks ,000 10, , ,174 Less: deposits with original maturities of three months or more 549, ,248 (410,736) (145,330) Cash and cash equivalents ,918 Il

19 NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS 30 June 2015 (unaudited) 11 CASH AND CASH EQUIVALENTS continued Geographical concentration of cash and cash equivalents and deposits with original maturities of three months or more is as follows: (Unaudited) (Unaudited) 30June 30 June AED'OOO AED'OOO Within UAE 510, ,394 Outside UAE 39,799 53,854 Interest rates on bank deposits ranges between: 0.50% and l.8% (30 June 2014: 0.12% and 2.5%) , SEGMENT INFORMATION The Company is organised into two main business segments: Underwriting of commercial lines of business - incorporating all classes of general insurance including marine cargo, marine hull, aviation, energy, property and engineering; and Underwriting of consumer line of business - incorporating all classes of insurance including accident, motor and medical. Six month period ended 30 June Commercial Consumer Total (Unaudited) (Unaudited) 30June 30JI/ne 30June 30JI/ne Hl June 30JI/ne / /4 AED'OOO AED'OOO AED'OOO AED'OOO AED'OOO AED'OOO Gross written premium 788,826 1,055, , ,597 1,401,827 1,546,651 Less: reinsurance premium ceded (571,402) (787950) (122,074) (40,453) (693,476) (828403) Net written premium 217, , , , , ,248 Net change in unearned premium reserves _l2,lli) Œ _,_lli) (36,559) ili"ill) ll,ill Net premium earned 207, , , , , Gross claims paid (448,481) (139,241) (546,500) (535,764) (994,981) (675,005) Less: reinsurance share of claims paid 326,678 ~ 43, , Net claims paid (121,803) (43,536) (502,928) (497,671) (624,731) (541,207) Net change in outstanding claims (176,183) ill,ill) (65,991) (242,174) l)_q_,qg) Net claims incurred (297,986) ( ) (568,919) (455369) (866,905) (557259) Commission income earned 43,281 53,822 2, ,384 54,069 Commission expenses incurred (45,342) f1j_j_g) (29,410) (25 575) (74,752) (66927) Net commissions (expense) income.jb.!!.!.) ll.fzq (27,307) (25,328) (29,368) íl1_.ill) Other underwriting income 2,387 2,817 2,457 2,459 4,844 5,276 Other underwriting expenses ~ _j]_, ]'J) (10,083) J.l..Q.,J_@ ~...íll.mi) Net other underwriting expenses.j..!w ~!1,ill).sus» m.zw ~ Net underwriting (loss) income (98,323) l! _.ill (149,484) (247,807) 148,982 Net investment and other income 55,592 60,287 General and administrative expenses (106,537) (104847) (Loss) profit for the period ~ ~ Assets and liabilities of the Company are commonly used across the segments. the segments. There were no transactions between 12

20 NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS 30 June 2015 (unaudited) 12 SEGMENT INFORMATION continued Three mouth period elided 30 June Commercial Consumer Tolal Sû June (Unaudited) (Unaudited) 30 June 30 JUlie sû June Bû June sû June / AED'OOO AED'OOO AED'OOO AED'OOO AED'OOO AED'OOO Gross written premium 202, , , , , ,459 Less: reinsurance premium ceded (119,526) (252362) (16,360) (135,886) (260,432) Net written premium 83, , , , , ,027 Net change in unearned premium reserves hill _2,ill 103, , Net premium earned 84, , , , , Gross claims paid (294,914) (84,854) (273,896) (292,697) (568,810) (377,551) Less: reinsurance share of claims paid 231,451 62,560 25,509.zuu 256,960 85,673 Net claims paid (63,463) (22,294) (248,387) (269,584) (311,850) (291,878) Net change in outstanding claims (176,674) (33 050) (71,725) (248,399) Lill Net claims incurred (240,137) (55344) (320,112) (228,603) (560,249) (283,947) Commission income earned 22,614 27,765 1, ,643 27,883 Commission expenses incurred (23,021) (20424) (14,004) ill...ill) (37,025) (33 546) Net commissions (expense) income ~ l_.ill (12,975) illj2.qi) (13,382) ßQill Other underwriting income 1,412 1,225 1,175 1,280 2,587 2,505 Other underwriting expenses ~ ßlli) ~ Jj_J]]J ßlli)..(l_Q_.JQl) Net other underwriting expenses ~ a_m) _ßlli) _ii.ill) ßl1Q).sin» Net underwriting (loss) income (159,354) (117,020) 25,127 (276,374) 79,276 Net investment and other income 29,675 24,471 General and administrative expenses (57,118) (54299) (Loss) profit for the period (~ CONTINGENT LIABILITIES AND COMMITMENTS (Unaudited) (Audited) 30June 31 December AED'OOO AED'OOO Bank guarantees ua» 100,907 Letters of credit The above bank guarantees and letters of credit were issued in the normal course of business, Legal claims The Company, in common with the significant majority of insurers, is subject to litigation in the normal course of the business, The management, based on advice from independent loss adjusters, internal and external legal counsels, makes provision, where applicable, representing amounts expected to result in a probable outflow of economic resources, 13