ELEMENT

CURRENT QUARTER

SIMILAR QUARTER FOR PREVIOUS YEAR

% CHANGE CURRENT

PREVIOUS QUARTER

% CHANGE PREVIOUS

Net profit (loss) before Zakat

-19,684

-135,705

85.5

13,762

-

Surplus (deficit) of insurance

transactions less returns of

policy holders investment

(operating transactions results)

-41,206

-136,949

69.91

12,897

-

Gross written premiums (GWP)

891,381

1,148,660

-22.4

1,233,582

-27.74

Net written premiums (NWP)

744,059

973,328

-23.56

1,075,033

-30.79

Net incurred claims

657,389

898,340

-26.82

674,226

-2.5

Net profit (loss) of policy

holders investment

6,483

1,244

421.14

2,104

208.13

Net profit (loss) of

shareholders capital

investment

16,329

3,294

395.72

1,125

1,351.47

ELEMENT

CURRENT PERIOD

SIMILAR PERIOD FOR PREVIOUS YEAR

% CHANGE

Net profit (loss) before Zakat

-4,422

-187,308

97.64

Surplus (deficit) of insurance transactions

less returns of policy holders investment

(operating transactions results)

-28,309

-178,432

84.13

Gross written premiums (GWP)

2,124,963

2,664,420

-20.25

Net written premiums (NWP)

1,819,092

2,272,920

-19.97

Net incurred claims

1,331,615

1,689,995

-21.21

Net profit (loss) of policy holders

investment

8,587

2,600

230.27

Net profit (loss) of shareholders capital

investment

17,454

-6,012

-

Earning or loss per share, Riyals

-0.04

-1.87

-

ELEMENT

EXPLAINATION

Reasons of increase

(decrease) for the quarter

compared with same

quarter last year

The reason behind the decrease in net profit during the current quarter compared to the same quarter of the previous year is the decrease in net claims incurred by 26.8% and the decrease in policy acquisition costs by 39%. The reason behind the increase in shareholders investments income during the current quarter compared to the same quarter of the previous year is the increase in realised gain on sale of available for sale investments.

Reasons of increase

(decrease) for the period

compared with same period

last year

The reason behind the decrease in net loss during the current period compared to the same period of the previous year is the decrease in net claims incurred by 21.2% due to the decrease in outstanding claims reserves. The reason behind the profit in shareholders investments income during the current period compared to loss during the same period of the previous year is the increase in realised gain on sale of available for sale investments.

Reasons of increase

(decrease) for the quarter

compared with the

previous quarter

The reason behind the net loss during the current quarter compared to net profit during the previous quarter is the decrease in net premium earned by 11% due to the decrease in gross written premiums during the current quarter, and the increase in general and administrative expenses by 9.6% due to the increase in provision for doubtful debts . The reason behind the increase in shareholders investments income during the current quarter compared to the previous quarter is the increase in special commission income by 81.8% and the increase in realised gain on sale of available for sale investments.

External auditor's report

containing reservation

1. The auditors report draws attention to the fact that these interim condensed financial statements are prepared in accordance with IAS 34 and not in accordance with the standard on interim financial reporting issued by the Saudi Organization for Certified Public Accountants (SOCPA). 2. The auditors draw attention to note (16) of the accompanying interim condensed financial statements which states that during the period ended 30 June 2016, Saudi Arabian Monetary Agency (SAMA) issued a letter to the Company that highlights the deteriorating solvency margin of the Company and the rectification measures to be taken according to the article (68) of insurance implementing regulations.

Reclassifications in

quarterly financial results

We reclassified some numbers within the annual financial results for comparative reasons in order to comply with the current period, there was no financial impact on net income or accumulated surplus after the reclassification.

Other notes

Basic and diluted earnings per share for the period was calculated by dividing the net income for the period by the weighted average number of shares issued and outstanding during the period amounting to 100 million shares.