"We draw attention to Note 2(b) of the condensed interim financial statements, which indicates that the Company incurred a net loss of SR 42.58 million during the period ended June 30, 2022 and, as of that date, the Company’s accumulated losses amounted to SR 192.33 million which represents 48% of the share capital. Moreover, as at June 30, 2022, the solvency margin of the Company is below the minimum solvency margin requirement prescribed by Article 68(2) of the Implementing Regulations Of The Cooperative Insurance Companies Control Law. These conditions along with other matters as set forth in note 2(b), indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. Our conclusion is not modified in respect of this matter. We draw attention to Note 2(b) disclosed in the financial statements, which further describes the circumstances and management's assessment, in relation to the disapproval of certain agenda items by the shareholders of the Company in their General Assembly Meeting held on 28 June 2022. Our conclusion is not modified in this respect”.

The accumulated losses for the period are SAR 192,332 Thousand, which are 48% of the paid- up Capital of SAR 400 million based on the condensed interim Financial Statements for the period ended 30-06-2022. The major reasons which caused this increase in the accumulated losses is the increase in total underwriting costs and expenses. Therefore, the company will apply the procedures and instructions for companies listed in Saudi Capital Market whose accumulated losses are equal to or more than 35% and less than 50% of share capital.