National Takaful Company (Watania) P.J.S.C.: Condensed Interim Financial Information for the Three Month Period Ended 31-March-2018

Transcription

1. National Takaful Company (Watania) Condensed interim financial information For the three month period ended 31 March 2018 Principal business address: National Takaful Company (Watania) PJSC P O Box: 6457 Abu Dhabi UAE P.J.S.C.
2. National Takaful Company (Watania) P.J.S.C. Condensed interim financial information Contents Page Directors’ statement 1 Independent auditors’ report on the review of condensed interim financial information 2 Condensed interim statement of financial position Condensed interim statement of profit loss and other comprehensive or 4 income Condensed interim statement of changes in shareholders’ Condensed interim statement of cash flows Notes to the condensed interim financial information 6 equity 8 9 10
3. R0 Box 6457 , Abu Dhabi, United Arab Emirates Tel Fax 03.310361meulfiayIUmmhkcv +911 2 3313 8888 +9.}? 2 2113 8800 Email .=nfo@watan.ra \A' new watania I‘W) i fir“ MM LéJLa MW: f w M. unite www.watania Mm ae 800-WAYANIM9282642) ae 5,-1.ng DIRECTOR’S STATEMENT FOR THE PERIOD ENDED MARCH 31. 2018 The Board of Directors is pleased to share its statement for the quarter ended March 31, 2018 with the condensed interim Financial Statements as at that date. together 91 FY £8: The delivered Company momentum of stable and 0 2017, profits positive results in grew substantially. Key highlights Gross Written Contribution increased achieved Q1FY18 where growth in contribution maintained the claims and combined ratio showed further during the quarter by of the results 78%in Q1FY18 improvement, as broad-based with all the was investment income was were: compared to Q1FY17. The growth major lines delivering impressive growth. The claims ratio to 72.8% in during the quarter showed further improvement and settled at 58.9% as compared Q1FY17. The expense ratio at 20.9% increased slightly during the quarter but was within the budget. Due to reduction in claims and expense ratio, the combined operating ratio (COR) improved to 95.8% in Q1FY18 from 104.6% in Q1FY17. Policyholders investment income investment book and better I The Company made improved portfolio mix. from AED 166k to AED 423k due to increase in the of AED 1.9mn from its insurance profits operations due to the combination of all the above factors. The Shareholder’s investment income The Company achieved net profit 33k in Q1FY17. Annualized return Looking was AED 1.6mn of AED 3.6mn in on equity was compared to AED 1.5mn in Q1FY17. Q1FY18 as compared to a small profit of AED as 16.8%. to the future: The year 2018 has started on a positive note for the Company where all the key operating metrices were in—line with the objectives. The Company delivered its highest ever quarterly profit of AED 3.6mn. We to build on further to the positive results achieved in FY17 and Q1FY18. Our strategy of ‘Back to comprised segmentation and effective pricing, consistency in delivering service in line with customer’s expectations and a motivated team has been very successful. I am confident that we will be able to build on it to meet the challenges and grasp the opportunities that lie ahead by enhancing the value of our products and the services that we provide to our policyholders. expect Basics’ which Managing of GCC focussed investment book continues to be a challenge due to political and economic taking place in UAE and we are remaining period of 2018. factors. However, we are optimistic about the positive changes that are confident that our investment portfolio will generate better returns in the We would like to sincerely thank United Arab Emirates Government, Insurance Authority, our Clients and Business partners for their confidence in Watania. We acknowledge and thank the management team and employees for their hard work and dedication. I Ali .5?\ Saeed Bin Harmel A1 Dhaheri Chairman
4. KPMG Lower Gulf Limited Level 19 , Nation Tower 2 Abu Dhabi Corniche, UAE Tel. +971 (2) 401 4800, Fax +971 (2) 632 7612 Independent Auditors' Report To the Shareholders of National Takaful Report on Company (Watania) P.J.S.C. Review of Condensed Interim Financial Information Introduction We have reviewed the accompanying 31 March 2018 condensed interim financial Company (Watania) P.J.S.C. (the “Company"), which information of National Takaful comprises: 0 the condensed interim statement of financial o the condensed interim statement of for the three-month Ii profit or as at 31 March loss and other 2018; comprehensive income 31 March 2018; the condensed interim statement of month o period ended position changes in shareholders' equity for the three- period ended 31 March 2018; the condensed interim statement of cash flows for the three—month period ended 31 March 2018; and 0 notes to the condensed interim financial information. Management is responsible for the preparation and fair presentation of these condensed interim financial information in accordance with IAS 34, 'Interim Financial Reporting'. Our responsibility is to express a conclusion on this condensed 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 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. 2 KPMG Luwer Gtilf Limited is a membei hint of the KPMG netwuik of independent inembei Iirnis nIIiliated With KPMG International Conpeiative I KPMG |nIernatmnnl"i, a Swtss entity All rights reserved KPMG Ltiwei Gull Limited is registered and licensed as a Icieign branch urirlei the. laws 01 the United Arab Emirates
5. National Takaful Company (Watania) P.J.$.c. Independent auditors' report 31 March 2018 Conclusion Based review, nothing has come to our attention that causes us to believe that accompanying 31 March 2018 condensed interim financial information is not prepared, in all material respects, in accordance with lAS 34, 'Interim Financial Reporting’. on our the KPMG Lower Gulf Limited (L__JA—\/ '1. Richard Ackland Registration No: 1015 Abu Dhabi, United Arab Emirates Date: 02 MAY 2018
6. National Takaful Company (W atania) Condensed interim statement of financial as P.J.S.C. position at Note (Unaudited) (Audited) 31 March 31 December 2018 2017 AED’000 AED’OOO 17,740 14,107 19,783 12,571 67,771 50,494 4,857 27,129 86,684 6,700 52,500 26,279 59,264 38,436 5,871 27,172 68,385 6,700 30,500 18,885 354,261 287,567 1,248 30,921 20,092 15,487 30,358 6,000 5,151 8,545 5,865 20,287 12,353 27,771 30,358 6,000 3,760 8,545 8,615 Assets Takaful operations’ assets (attributable to participants) Investments at fair value Deferred through profit or policy acquisition cost loss Retakaful and reinsurance share of unearned contributions 13 Retakaful and reinsurance share of claims Advances, deposits and other assets Due from shareholders Oomxbw Takaful and retakaful receivables Restricted bank deposits deposits Cash and cash equivalents Wakala Total takaful assets Shareholders’ assets Property and equipment Investments - held to maturity 10 Financial assets available for sale Investments at fair value through profit or Investment properties Statutory deposit Advances, deposits and other Restricted bank deposits Cash and cash equivalents 11 loss 12 assets 0 °\ 924 Total shareholders assets 123,667 1 Total assets 477,928 406,180 18,613 Continued. ...
7. National Takaful Company (Watania) Condensed interim statement of financial P.J.S.C. position (continued) as at (Unaudited) (Audited) 31 March 31 December Note 2018 2017 AED’000 AED’OOO 66,055 273,033 13,874 1,299 43,858 232,049 1 1,660 354,261 287,567 4,955 3,936 27,129 2,788 3,576 27,172 36,020 33,536 Liabilities Takaful operations’ liabilities (attributable to participants) Takaful and retakaful payables Takaful contract liabilities I3 Other liabilities VAT output payables - I5 net Total takaful liabilities - Shareholders’ liabilities Other liabilities End of service benefits Due to I7 policyholders Total shareholders’ liabilities Participants’ account Property and liability takaful fund Qard hasan financed by shareholders — Total deficit in Shareholders’ Share capital Legal reserve Fair value participants' 16 (133,386) (133,445) 16 133,386 133,445 account - - equity 14 150,000 150,000 801 reserve Accumulated losses Total shareholders’ equity Total shareholders’ equity The condensed interim financial information of the on (1,714) (64,010) 87,647 85,077 477,928 406,180 and liabilities and takaful liabilities the Board of Directors 801 (2,712) (60,442) [12 M fl 2” Ifl, and signed Company on was authorise their behalf by: for issue and approved by l Clizieffifiapmifififiicer The notes set out on The auditors’ report independent pages 10 to 22 form on an integral part of these ' condensed interim financial information. review of the condensed interim financial information is set out pages 2 and 3. 5 on
8. National Takaful Company (Watania) Condensed interim statement of profit for the period ended 31 March or P.J.S.C. loss and other comprehensive income (Unaudited) 2018 2017 Note AED’000 AED’000 Gross takaful contributions 22 103,074 57,916 Contributions ceded 22 (37,658) (16,313) 65,416 41,603 22 (19,401) (9,213) 22 46,015 1,849 32,390 1,069 47,864 33,459 22 (40,066) (30,768) 22 13,990 9,257 Takaful income Net takaful contributions Net transfer to unearned contributions reserve Net takaful contributions earned Commissions earned Total takaful income Takaful expenses Gross claims paid Retakaful share of claims Net claims paid paid Outstanding claims Retakaful share of outstanding claims Incurred but not reported claims net Uneamed subscriptions net Unallocated loss adjustment expense reserve — — net 22 (13,025) (5,501) 11,814 1,830 22 262 502 22 Net takaful claims incurred Commissions expense Other underwriting expenses (21,511) 22 22 — (26,076) (69) (27,094) 22 - net 22 Total ta kaful expenses Net takaful income (2,978) (30,072) (28,800) 17,792 4,659 423 166 Income from investments 22 22 Wakala fees 22 Other income 22 30 22 59 (loss) from takaful operations (104) (23,587) (3,753) (1,460) Mudarib’s share Net income / 1,197 (148) (18,038) (58) (6,632) 175 (1,690) Continued .....
9. National Takaful Company (Watania) Condensed interim statement of profit or P.J.S.C. loss and other comprehensive income (continued) for the period ended 31 Other March (Unaudited) 2018 2017 Note AED’000 AED’OOO 20 1,644 18,038 1,531 6,632 148 58 19,830 8,221 (9,629) (6,692) (6,498) revenues Investments income — net Wakala fees I9 Mudarib’s share Other expenses General and administrative expenses Commissions expense 21 Income / 22 3,509 Net (loss) profit Other for the or or operations period comprehensive Items that are profit from takaful 3,568 1,723 (1,690) 33 income may be reclassified subsequently to loss: Change in fair value of financial assets available Impairment on financial assets available for sale Other comprehensive loss for the Total comprehensive income / Earnings 59 per for sale period (loss) on The auditors’ report independent pages 2 and 3. for the period 2,570 0.024 pages 10 to 22 form on 246 (998) ordinary share (AED) The notes set out (1,244) an integral part of these (189) - (189) (156) 0.0002 condensed interim financial information. review of the condensed interim financial information is set out on
10. Total Acumlated los es value res ve Fair P .JSC. Legal res ve equity sat nia) hareolds’ Share capital 79,175 33 (189) (156) AED’0 (70,864) 33 33 AED’0 AED’0 (3) (189) (189) AED’0 AED’0 79,019 85,07 3,568 (998) 2,570 87,647 39 (70,834) (64,01 ) 3,568 3,568 (60,4 2) (189) (998) (998) (2,712) 42 150, 0 (1,714) 801 801 150, 0 150, 0 150, 0 period changes March Company staemnt ended ptheeriod period of 31 Tak ful period interim month National Condes fina cial interim condes these of part in (W informatin. (Audited) 2017 January thre 1 the at for As the for for income loss the for ptheeriod period income / (los ) period resrve comprehnsiv comprehnsiv comprehnsiv Transfer the for Total Profit Other Total integral period legal to (2U0na1ud7ite) (Audited) 2018 March January 31 1 at at As As the for for income loss an the for income / (los ) period comprehnsiv comprehnsiv comprehnsiv the for Total Profit Other Total form 22 (2U0na1ud8ite) March to 10 pages on out set at notes As The 31
11. National Takaful Company (Watania) P.J.S.C. Condensed interim statement of cash flows for the three month period ended 31 March (Unaudited) Note 2018 2017 AED’000 AED’OOO 3,568 33 activities Operating Profit for the period Adjustmentfor: Depreciation and amortisation 141 Income from investments (1,644) Provision for end of service benefits Provision for impairment of takaful and 360 retakaful receivables Impairment 150 financial assets available for sale on Advances, deposit and other Takaful and retakaful (18,449) 630 assets payables Takafill contract liabilities 13 Retakaful contract assets I3 policy acquisition costs Other liabilities Vat output Cash from Payment ~ (944) in: Takafiil and retakaful receivables Deferred 394 246 2,821 Changes 160 (1,531) payables 15 operating activities for end of service benefits Net cash from investing \10\ (44) 616 (26) (15,977) 887 2,400 (8,000) (27,118) (20,716) equivalents 4,644 (20,100) beginning of the period 27,500 43,710 32,144 23,610 activities in cash and cash Cash and cash equivalents at the equivalents _ (22,000) (decrease) at the end of the The notes set out on The auditors’ report independent 660 637 Net increase / pages 2 and 3 31,762 - investments, including restricted deposits Change in restricted bank deposits Change in wakala deposits Cash and cash 199 (465) (5,290) - 16,975 (5,686) (1,798) 4,381 1,299 31,762 Cash flows from investing activities Purchase of property and equipment Change in investments net Net cash used in (20,565) (1,536) - operating activities Income received from 22,197 40,984 204 (754) (7,536) pages 10 to 22 form on an period 8 integral part of these condensed interim financial information. review of the condensed interim financial information is set out on
12. National Takaful Company Matania ) P.J.S.C. Notes to the condensed interim financial information 1 Legal status and activities National Takaful Company (Watania) PJ SC (the “Company”) was incorporated in the Emirate Dhabi, United Arab Emirates on 12 July 2011 as a public joint stock company in accordance with the United Arab Emirates Federal Law No. (2) of 2015. Incorporation of the Company was approved by the Ministry of Economy with a ministerial resolution no. (379) on of Abu 28 June 2011. The registered office address of the Emirates. The takaful Company is PO. Box No. 6457 Abu Dhabi, United Arab is Company primarily authorised to engage in providing all classes of non family solutions in accordance with UAE Federal Law No. (6) of 2007 concerning establishment of the insurance with the Insurance authority and organisation of it is operations, and is registered Companies Register of Insurance Authority of UAE. under registration no. (90). (a) Basis of preparation Statement of compliance These condensed interim financial information have been prepared in accordance with (“IAS”) 34, Interim Financial Reporting. Accordingly, these do not include all of the information required for a complete set of financial statements, and should be read in conjunction with the financial statements of the Company as at and for the year ended 31 December 2017, which have been prepared in accordance with International Financial Reporting Standards (IFRS). The results for three month period ended 31 March 2018 are not necessarily indicative of the results for the year ending 31 December 2018. International Accounting Standard As per 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 between 2015. The financial regulation provided an alignment period to insurance to three years from the publication of the financial regulation in the companies Public Gazette from 29 January 2015 to align the operations to the covenants of the regulation therein. The one Company has aligned its operations with the requirements set out in the regulations. (b) Basis of measurement These condensed interim financial information have been except for the invstments carried for sale and investment (C) at fair value prepared on the historical cost basis through profit or loss, financial assets available properties. Functional and reporting currency These condensed interim financial information (“AED”), which is the information presented are presented in United Arab Emirates Dirhams Company’s functional currency. Except as indicated, in AED has been rounded to the nearest thousand. 10 financial