Islamic Arab Insurance Co (Salama) And Its Subsidiaries Condensed Consolidated Interim Financial Statements For The Six-Month Period Ended 30 June 2017

Transcription

1. Islamic Arab Insurance Co . (Salama) and its subsidiaries Condensed consolidated interim financial statements for the six-month period ended 30 June 2017
2. Islamic Arab Insurance Co . (Salama) and its subsidiaries Condensed consolidated interim financial statements for the six-month period ended 30 June Contents Page Independent auditors’ report on review of condensed consolidated interim financial statements 1 Condensed consolidated interim statement of profit or loss 3 Condensed consolidated interim statement of profit or loss and other comprehensive income 5 Condensed consolidated interim statement of financial position 6 Condensed consolidated interim statement of cash flows 7 Condensed consolidated interim statement of changes in shareholders' equity 8 Notes 10
5. Islamic Arab Insurance Co . (Salama) and its subsidiaries Condensed consolidated interim statement of profit or loss for the six-month period ended 30 June Six-month period ended 30 June Note 2017 AED’000 (Un-audited) Six-month Three-month period ended period ended 30 June Three-month period ended 30 June 30 June 2016 2017 AED’000 AED’000 (Un-audited) (Un-audited) 2016 AED’000 (Un-audited) CONTINUING OPERATIONS UNDERWRITING RESULTS Underwriting income Gross written contributions Less: reinsurance and retakaful contributions ceded Net contributions Net movement in unearned contributions Contributions earned Commission income on ceded reinsurance and retakaful 18 18 18 18 Underwriting expenses Gross claims paid Less: reinsurance and retakaful share of claims paid Net claims paid Net movement in outstanding claims and family takaful reserve Claims incurred Commission paid and other costs 18 18 Net underwriting income / (loss) 18 Income from other sources Income from investments Other income Expenses General, administrative and other expenses Financial expenses Net profit / (loss) before tax for the period Taxation - current 401,537 (127,241) 274,296 (9,626) 264,670 15,302 279,972 417,238 (117,700) 299,538 24,016 323,554 17,761 341,315 181,769 (58,309) 123,460 2,135 125,595 4,769 130,364 182,081 (52,385) 129,696 7,166 136,862 10,506 147,368 148,160 (45,293) 102,867 (11,262) 91,605 123,961 215,566 289,121 (61,734) 227,387 107,513 334,900 124,585 459,485 63,957 (17,638) 46,319 (5,718) 40,601 61,864 102,465 141,536 (31,142) 110,394 31,124 141,518 55,428 196,946 64,406 (118,170) 27,899 (49,578) 21,935 5,405 91,746 9,734 12,743 (95,693) 10,628 2,743 41,270 1,752 4,328 (43,498) (57,261) (396) 34,089 (53,702) (510) (149,905) (28,500) (119) 12,651 (22,016) (276) (65,790) (4,023) (4,794) (894) 601 30,066 (154,699) 11,757 (65,189) - - - - 30,066 (154,699) 11,757 (65,189) (22,325) (1,192) (10,659) 995 7,741 (155,891) 1,098 (64,194) Net profit / (loss) after tax for the period before policyholders’ distribution Distribution to policyholders of Company Net profit / (loss) after tax and distribution to policyholders for the period from continuing operations DISCONTINUED OPERATIONS Loss from discontinued operations 13 Net profit / (loss) after tax and distribution to policyholders for the period 3
6. Islamic Arab Insurance Co . (Salama) and its subsidiaries Condensed consolidated interim statement of profit or loss (continued) for the six-month period ended 30 June Six-month Six-month Three-month Three-month period ended period ended period ended period ended 30 June 2017 AED’000 (Un-audited) 30 June 2016 AED’000 (Un-audited) 30 June 2017 AED’000 (Un-audited) 30 June 2016 AED’000 (Un-audited) 7,741 (155,891) 1,098 (64,194) Shareholders 5,220 (161,454) 1,053 (63,833) Non-controlling interest 2,521 7,741 5,563 (155,891) 45 1,098 (361) (64,194) Profit / (loss) per share (AED) (Note 16) 0.004 (0.136) 0.001 (0.054) Profit / (loss) per share (AED) - continuing operations 0.023 (0.135) 0.00986 (0.055) Net profit / (loss) after tax and distribution to policyholders for the period Attributable to: The notes on pages 10 to 25 form an integral part of these condensed consolidated interim financial statements. The independent auditors’ report on review of condensed consolidated interim financial statements is set out on pages 1 and 2. 4
7. Islamic Arab Insurance Co . (Salama) and its subsidiaries Condensed consolidated interim statement of profit or loss and other comprehensive income for the six-month period ended 30 June Net profit / (loss) after tax and distribution to policyholders for the period Other comprehensive income / (loss) net of income tax Items that are or may be reclassified to profit or loss: Net change in fair value of available-for-sale investments Foreign exchange translation reserve Other comprehensive loss for the period Total comprehensive income / (loss) for the period Attributable to: Shareholders Non-controlling interest Six-month Six-month Three-month Three-month period ended period ended period ended period ended 30 June 2017 AED’000 (Un-audited) 30 June 2016 AED’000 (Un-audited) 30 June 2017 AED’000 (Un-audited) 30 June 2016 AED’000 (Un-audited) 7,741 (155,891) 1,098 (64,194) 2,645 (5,063) (16,095) 3,273 (5,618) (1,109) 2,645 10,386 (21,158) (177,049) 3,273 4,371 (6,727) (70,921) 7,458 2,928 10,386 (176,454) (595) (177,049) 3,834 537 4,371 (70,702) (219) (70,921) The notes on pages 10 to 25 form an integral part of these condensed consolidated interim financial statements. The independent auditors’ report on review of condensed consolidated interim financial statements is set out on pages 1 and 2. 5
9. Islamic Arab Insurance Co . (Salama) and its subsidiaries Condensed consolidated interim statement of cash flows for the six-month period ended 30 June Six-month period ended 30 June Note Six-month period ended 30-Jun 2017 2016 AED’000 (Un-audited) AED’000 (Un-audited) Cash flows from operating activities Net profit / (loss) before non-controlling interest Adjustments for: Depreciation Net movement in unearned contributions reserve Investment properties Amortisation of intangible assets Share of profit from associates Dividend income Operating profit / (loss) before changes in working capital 7,741 (155,891) 1,929 10,252 (482) 196 (10,423) (2,536) 6,677 1,892 (32,474) 2,529 257 (2,041) (1,870) (187,598) Change in deposits with takaful and retakaful companies Change in contributions and takaful balance receivable Change in due from / to related parties Change in other assets and receivables Change in assets held-for-sale Change in outstanding claims (net of retakaful) Change in takaful payables and other payables Change in liabilities held-for-sale Net cash generated from / (used in) from operating activities 16 (12,548) 110 (7,345) 26,137 (9,441) 60,183 (4,101) 59,688 316 (45,864) (344) (16,659) 23,849 101,668 80,189 (17,373) (61,816) Cash flows from investing activities Property and equipment - net Net movement in intangible assets Statutory deposits Dividend received Investments-net Net movement in Participants' investments in unit-linked contracts Net cash (used in) / generated from investing activities (3,965) (294) (1,314) 2,536 (22,960) (1,450) (27,447) 143 (168) 8,994 1,870 90,812 817 102,468 Cash flows from financing activities Bank finance Net movement in non-controlling interest Net cash generated from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at 1 January Cash and cash equivalents at 30 June 116 298 414 32,655 118,830 151,485 425 380 805 41,457 52,603 94,060 14 14 The notes on pages 10 to 25 form an integral part of these condensed consolidated interim financial statements. The independent auditors’ report on review of condensed consolidated interim financial statements is set out on pages 1 and 2. 7
10. Islamic Arab Insurance Co . (Salama) and its subsidiaries Condensed consolidated interim statement of changes in shareholders' equity (Un-audited) for the six-month period ended 30 June Attributable to the equity holders of the Company Foreign exchange Investment Share Statutory Revaluation translation fair value Treasury Accumulated capital reserve reserve reserve reserve stock losses AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 Balance at 1 January 2016 Total comprehensive income for the period (Loss) / profit for the period Other comprehensive loss Movement in net change in fair value of available-for-sale investments Movement in foreign exchange translation reserve Total other comprehensive loss Total comprehensive (loss) / income for the period 1,210,000 35,469 (61,610) 3,980 (35,972) (266,421) 959,307 74,146 Total equity AED’000 1,033,453 - - - - - - (161,454) (161,454) 5,563 (155,891) - - - (9,961) (9,961) (5,039) (5,039) - - (5,039) (9,961) (15,000) (24) (6,134) (6,158) (5,063) (16,095) (21,158) - - - (9,961) (5,039) - (161,454) (176,454) (595) (177,049) - - 3,326 - - - - 3,326 (3,326) (108) (108) - - - - - - - - 488 488 1,210,000 73,861 38,795 (71,571) (1,059) (35,972) (427,875) 786,179 70,605 856,784 Transaction with owners, recorded directly in equity Surplus revaluation reserve transferred on disposals of property Dividend paid Change in non-controlling interest due to capital increase Balance at 30 June 2016 73,861 Noncontrolling Total interest AED’000 AED’000 8
11. Islamic Arab Insurance Co . (Salama) and its subsidiaries Condensed consolidated interim statement of changes in shareholders' equity (Un-audited) (continued) for the six-month period ended 30 June Attributable to the equity holders of the Company Foreign exchange Investment Share Statutory Revaluation translation fair value Treasury Accumulated capital reserve reserve reserve reserve stock losses AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 Balance at 1 January 2017 Total comprehensive income for the period Profit for the period Other comprehensive income / (loss) Movement in foreign exchange translation reserve Total other comprehensive loss Total comprehensive (loss) / income for the period Transaction with owners, recorded directly in equity Surplus revaluation reserve transferred on disposal of property Dividend paid Change in non-controlling interest due to capital increase Balance at 30 June 2017 1,210,000 73,861 39,189 Noncontrolling Total interest AED’000 AED’000 (107,613) (3,407) (35,972) (465,474) 710,584 56,275 Total equity AED’000 766,859 - - - - - - 5,220 5,220 2,521 7,741 - - - 2,238 2,238 2,238 - - 5,220 2,238 2,238 7,458 407 407 2,928 2,645 2,645 10,386 - - - - - - - - (155) (155) - - - - - - - - 453 453 1,210,000 73,861 39,189 (105,375) (3,407) (35,972) (460,254) 718,042 59,501 777,543 The independent auditors’ report on review of condensed consolidated interim financial statements is set out on pages 1 and 2. 9
12. Islamic Arab Insurance Co . (Salama) and its subsidiaries Notes (forming part of the condensed consolidated interim financial statements) 1 Legal status and activities Islamic Arab Insurance Co. (Salama) (“the Company”) is a public shareholding company, registered in the Emirate of Dubai, United Arab Emirates (UAE) and operates through various branches in the UAE. The registered office of the Company is P.O. Box 10214, Dubai, United Arab Emirates. The principal activity of the Company is the writing of all classes of general takaful and family takaful business, in accordance with Islamic Shari’ah principles and in accordance with the relevant Articles of the Company, UAE Federal Law No. 2 of 2015 for commercial companies and U.A.E. Federal Law No. 6 of 2007, concerning regulations of insurance operations. The Company and its subsidiaries are referred to as “the Group”. Tariic Holding B.S.C (Tariic), a subsidiary of the Company, is an intermediate holding company in Bahrain and no commercial activities are carried out in the Kingdom of Bahrain. The Group has the following principal subsidiaries which are engaged in insurance and reinsurance under Islamic Shari’ah principles: Group’s Ownership 31 December 30 June 2016 2017 Subsidiaries Directly owned Tariic Holding Company B.S.C Misr Emirates Takaful Life Insurance Co. Salama Immobilier Through Tariic Salama Assurances Senegal Salama Assurances Algerie Egyptian Saudi Insurance Home Best Re Holding Company (discontinued operations) 2 Basis of preparation a) Statement of compliance Country of incorporation 99.40% 85.00% 84.25% 99.40% 85.00% 84.25% Kingdom of Bahrain Egypt Senegal 58.45% 96.98% 51.15% 58.45% 96.98% 51.15% Senegal Algeria Egypt 100% 100% Malaysia These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting". They do not include all of the information required for the annual audited consolidated financial statements, and should be read in conjunction with the annual audited consolidated financial statements of the Group for the year ended 31 December 2016, which have been prepared in accordance with International Financial Reporting Standards ("IFRS"). On 1 April 2015, a new UAE Federal Law No. 2 of 2015 for the Commercial Companies (“UAE Companies Law of 2015”) was issued with effective date of 1 July 2015. As per the transitional provisions of the new law, companies are to ensure compliance by 30 June 2017. The Group is in the process of adopting the new Federal Law and will be fully compliant before the transitional provisions deadline. Further, under Federal Law No. 6 of 2007, relating to Establishment of Insurance Authority and Regulation of Insurance Operations, a new financial regulation for insurance companies was issued on 28 January 2015. The financial regulation provided an alignment period to the insurance companies between one to three years from the publication of financial regulation in Public Gazzette on 29 January 2015 to align the operations to the covenants of the regulations therein. The Group is in the process of aligning the operations with the requirement of the regulations and will be fully aligned before the deadline for alignment period. 10
13. Islamic Arab Insurance Co . (Salama) and its subsidiaries Notes (continued ) 2 Basis of preparation (continued) b) Basis of measurement The condensed consolidated interim financial statements have been prepared on the historical cost basis except for the following: i) financial instruments at fair value through profit and loss ("FVTPL") and unit-linked contracts are measured at fair value; ii) available-for-sale ("AFS") financial assets are measured at fair value; and iii) investment properties are measured at fair value. c) Functional and reporting currency These condensed consolidated interim financial statements are presented in UAE Dirham (AED), which is the functional currency of the Company. Except as otherwise indicated, financial information presented in UAE Dirham has been rounded to the nearest thousand. d) Significant accounting policies The accounting policies adopted in the preparation of the condensed consolidated interim financial statements are consistent with those followed in the preparation of the Group’s annual audited consolidated financial statements for the year ended 31 December 2016. 3 Financial risk management The Group's financial risk management objectives, policies and accounting policies are consistent with those disclosed in the audited consolidated financial statements as at and for the year ended 31 December 2016. 4 Estimates The preparation of the condensed consolidated interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which the estimates are revised and in the future periods effected. In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were significantly the same as those that applied to the annual audited consolidated financial statements as at and for the year ended 31 December 2016. 5 Interim measurement The nature of the Group’s business is such that income and expense are incurred in a manner, which is not materially impacted by any form of seasonality. These condensed consolidated interim financial statements were prepared on the accrual basis, which requires income and expense to be recorded as earned or incurred and not as received or paid throughout the period. However, the interim results may not represent a proportionate share of the annual profits due to variability in contributions and investment income and uncertainty of claims occurrences. 11
14. Islamic Arab Insurance Co . (Salama) and its subsidiaries Notes (continued) 6 Allocation of the net profit (Un-audited) For the six-month period ended 30 June 2017 Noncontrolling interest Shareholders Policyholders Total AED’000 AED’000 AED’000 AED’000 Net underwriting income / (loss) Income Wakalah share (Note 7) Mudarib share (Note 7) Net technical charges from policyholders to shareholders Net underwriting income from subsidiaries Income from investments Other income Expenses General, administrative and other expenses Financial expenses Charitable donations Net profit / (loss) before tax for the period Tax – current Net profit / (loss) after tax for the period Loss from discontinued operations Share of non-controlling interest Policyholders' loss financed by shareholders / recovery of loss from policyholders' fund (Note 15) Net profit / (loss) for the period For the six-month period ended 30 June 2016 Non controlling Shareholders Policyholders interest Total AED’000 AED’000 AED’000 AED’000 - 64,406 - 64,406 - (118,170) - (118,170) 44,192 7 (44,192) (7) - - 42,808 8 (42,808) (8) - - (463) 17,963 21,839 5,405 88,943 463 (17,963) 96 2,803 - 21,935 5,405 91,746 2,097 20,207 9,632 12,743 87,495 (2,097) (20,207) 102 (183,188) - 9,734 12,743 (95,693) (56,369) (396) (892) - - (56,369) (396) (892) (53,427) (510) (275) - - (53,427) (510) (275) 31,286 (4,023) 2,803 - - 34,089 (4,023) 33,283 (4,794) (183,188) - - (149,905) (4,794) 27,263 (22,325) (2,521) 2,803 - 2,521 30,066 (22,325) - 28,489 (1,192) (5,563) (183,188) - 5,563 (154,699) (1,192) - 2,803 5,220 (2,803) - 2,521 7,741 (183,188) (161,454) 183,188 - 5,563 (155,891) 12
15. Islamic Arab Insurance Co . (Salama) and its subsidiaries Notes (continued ) 6 Allocation of the net profit (Un-audited) (continued) Consolidated statement of financial position 30 June 2017 AED'000 (Un-audited) ASSETS Participants' assets Participants' investments in unit-linked contracts Contributions and takaful balance receivables Retakafuls’ share of outstanding claims Retakafuls’ share of unearned contributions Other assets and receivables Cash and bank balances Total participants' assets Total shareholders' assets * Total assets LIABILITIES Participants' liabilities Outstanding claims and family takaful reserve Payable to Participants for unit-linked contracts Unearned contributions reserve Takaful balances payable Other payables and accruals Total participants' liabilities Total shareholders' liabilities * Total liabilities NET ASSETS EMPLOYED FINANCED BY: Shareholders’ equity Non-controlling interest 31 December 2016 AED'000 (Audited) 1,162,878 158,053 98,697 68,985 3,997 72,452 1,565,062 2,053,403 3,618,465 989,369 147,392 135,013 45,632 6,476 13,104 1,336,986 2,053,044 3,390,030 218,456 1,154,651 110,376 119,480 54,193 1,657,156 1,183,766 2,840,922 290,840 982,592 76,081 109,314 88,658 1,547,485 1,075,686 2,623,171 777,543 766,859 718,042 59,501 777,543 710,584 56,275 766,859 * Shareholders' assets and liabilities represents affairs of the subsidiaries as shareholder funds are used for the investments thereon. 13
16. Islamic Arab Insurance Co . (Salama) and its subsidiaries Notes (continued ) 7 Wakalah and Mudarib Share The shareholders manage the takaful operations of the Group for the policyholders and charge 15% (2016: 15%) of gross written contributions of non family takaful business (excluding subsidiaries) as wakalah share. For family takaful business, sharing ratio is 15% (2016: 15%) of mortality costs. The shareholders of the Group also manage the policyholders’ investment funds other than family takaful and charge 15% (2016: 15%) of investment income earned by the policyholders as Mudarib share. 8 Investment properties The geographic dispersion of investment properties is as follows : 30 June 2017 AED'000 (Un-audited) 15,000 113,692 128,692 Within UAE Outside UAE 31 December 2016 AED'000 (Audited) 15,000 113,210 128,210 The variations in the value of investment properties are due to foreign exchange translation of investment properties held in foreign operations. The Group investment properties portfolio is being managed and maintained by a third party; administrative costs and the rental income received from these properties are being set off with the administrative fees. 9 Investments in associates The principal significant associates of the Group, all of which have 31 December as their year end are as follows: Associates Salama Cooperative Insurance Company (formerly Saudi IAIC) Islamic Insurance Jordan Ownership Country of 2017 2016 incorporation 30.00% 30.00% 20.00% 20.00% Movements during the period/year Balance at the beginning of period/year Share of profit from associates Transfer to assets held-for-sale Balance at the end of period/year 14 KSA Jordan 30 June 2017 AED’000 (Un-audited) 31 December 2016 AED’000 (Audited) 73,367 31,792 105,159 64,461 30,275 94,736 30 June 2017 AED’000 (Un-audited) 94,736 10,423 105,159 31 December 2016 AED’000 (Audited) 87,548 8,181 (993) 94,736
17. Islamic Arab Insurance Co . (Salama) and its subsidiaries Notes (continued ) 10 Classes and categories of financials assets and financial liabilities The table below sets out the classification of each class of financial assets and liabilities and their fair values. For instruments carried at amortised cost, the management believes that their carrying values approximate to their fair values. At 30 June 2017 (Un-audited) Financial assets Investment in associates Statutory deposits Investments Participants' investments in unit-linked contracts Deposits with takaful and retakaful companies Contributions and takaful balance receivables Amounts due from related parties Other assets and receivables Cash and bank balances FVTPL AED’000 AFS AED’000 Amortised cost AED’000 59,540 1,162,878 1,222,418 82,494 82,494 105,159 13,075 316,448 2,093 234,997 11,298 90,518 151,485 925,073 105,159 13,075 458,482 1,162,878 2,093 234,997 11,298 90,518 151,485 2,229,985 1,154,651 1,154,651 - 4,099 318,368 167,027 482 489,976 4,099 1,154,651 318,368 167,027 482 1,644,627 FVTPL AED’000 AFS AED’000 Amortised cost AED’000 Total AED’000 57,174 989,369 1,046,543 82,483 82,483 94,736 11,761 293,220 2,109 222,449 11,230 18,689 118,830 773,024 94,736 11,761 432,877 989,369 2,109 222,449 11,230 18,689 118,830 1,902,050 982,592 982,592 - 3,983 227,887 224,634 304 456,808 3,983 982,592 227,887 224,634 304 1,439,400 Total AED’000 Financial liabilities Bank finance Payable to Participants for unit-linked contracts Takaful balances payable Other payables and accruals Amounts due to related parties At 31 December 2016 (Audited) Financial assets Investment in associates Statutory deposits Investments Participants' investments in unit-linked contracts Deposits with takaful and retakaful companies Contributions and takaful balance receivables Amounts due from related parties Other assets and receivables Cash and bank balances Financial liabilities Bank finance Payable to Participants for unit-linked contracts Takaful balances payable Other payables Amounts due to related parties 15
18. Islamic Arab Insurance Co . (Salama) and its subsidiaries Notes (continued ) 11 Investments 30 June 2017 (Un-audited) Domestic International investments investments AED’000 AED’000 31 December 2016 (Audited) Total Domestic International investments investments AED’000 AED’000 AED’000 Total AED’000 Financial assets at fair value through profit or loss Mutual fund and externally managed portfolios Shares and securities 5,359 5,359 32,085 22,096 54,181 32,085 27,455 59,540 4,717 4,717 35,236 17,221 52,457 35,236 21,938 57,174 - 81,692 802 82,494 81,692 802 82,494 - 81,692 791 82,483 81,692 791 82,483 - 151,569 151,569 - 145,854 145,854 5,359 138,058 26,821 453,123 138,058 26,821 458,482 4,717 120,545 26,821 428,160 120,545 26,821 432,877 Available-for-sale investments Mutual fund and externally managed portfolios Shares and securities Islamic placements (refer 11.1) Held to maturity Sukuk and Government bonds Other investments Total investments 11.1 Represent Shari’ah compliant placements with different financial institutions having profit rates of 0.22% to 5% (2016: 0.22% to 5%) and maturing in more than three months when acquired. 11.2 Participants' investments in unit-linked contracts 30 June 2017 AED’000 (Un-audited) Financial assets at fair value through profit or loss 1,162,878 16 31 December 2016 AED’000 (Audited) 989,369
19. Islamic Arab Insurance Co . (Salama) and its subsidiaries Notes (continued ) 11 Investments (continued) Determining fair values The table below analyses financial instruments measured at fair value at the end of the reporting period, by the level in the fair value hierarchy into which the fair value measurement is categorised: 30 June 2017 (Un-audited) Level 1 AED’000 Level 2 AED’000 Level 3 AED’000 Total AED’000 32,085 - - 32,085 27,455 59,540 1,162,878 1,162,878 - 1,162,878 27,455 1,222,418 513 513 81,692 289 81,981 - 81,692 802 82,494 - - 128,692 128,692 - 1,154,651 - 1,154,651 22,721 12,515 - 35,236 21,938 44,659 989,369 1,001,884 - 989,369 21,938 1,046,543 506 506 81,692 285 81,977 - 81,692 791 82,483 - - 128,210 128,210 - 982,592 - 982,592 Financial assets Fair value through profit or loss Mutual fund Participants' investments in unitlinked contracts Shares and securities Available-for-sale Mutual fund Shares and securities Non-financial assets Investment properties Financial liabilities Payable to Participants for unitlinked contracts 31 December 2016 (Audited) Financial assets Fair value through profit or loss Mutual fund Participants' investments in unitlinked contracts Shares and securities Available-for-sale Mutual fund Shares and securities Non-financial assets Investment properties Financial liabilities Payable to Participants for unitlinked contracts 17
20. Islamic Arab Insurance Co . (Salama) and its subsidiaries Notes (continued ) 12 Related party transactions The Group, in the normal course of business, collects contributions, settles claims and enters into other transactions with other businesses that fall within the definition of related parties contained in the IAS 24 Related Party Disclosures (Revised). The management believes that the terms of such transactions are not significantly different from those that could have been obtained from third parties. Following are the details of significant transactions with related parties. General and administrative expenses Six-month period ended 30 June 2017 AED’000 (Un-audited) Six-month period ended 30 June 2016 AED’000 (Un-audited) 1,439 1,202 3,696 324 4,020 3,519 242 3,761 30 June 2017 AED’000 (Un-audited) 31 December 2016 AED’000 (Audited) 10,928 370 11,298 10,928 302 11,230 482 482 304 304 Compensation of key management personnel Short term benefits Employees end of service benefits Amounts due from related parties Bin Zayed Group (funds advanced for investment) Other entities under common management with the Group Amounts due to related parties Other entities under common management with the Group 13 Discontinued operation During 2015, the Board of Directors of the Group approved to sell its investment in one of its subsidiaries Best Re Holding. Management has allocated goodwill to each subsidiary on a systematic basis where they consider appropriateness of carrying value of each business unit after assessing the external market conditions. The carrying value of goodwill attributable to Best Re Holding has been charged to profit or loss in full in 2015 as a difference between carrying value and recoverable amount. 18