As at December 31, 2022
| Description | Notes | 2022 | 2021 |
| SAR’000 | |||
| Operating activities: | |||
| Net income for the year attributable to the shareholders before zakat | 480,389 | 350,138 | |
| Adjustments for non-cash items: | |||
| Net income attributed to the insurance operations | 43,463 | 22,330 | |
| Depreciation | 4, 6 | 28,108 | 27,299 |
| Amortisation of intangible assets | 5 | 18,836 | 5,019 |
| Loss on sale of property and equipment | 223 | – | |
| Allowance for doubtful debts | 13 | 33,830 | 39,891 |
| Dividend and commission income | (242,477) | (146,047) | |
| Gain on sale of investments | 8 | (36,488) | (141,957) |
| Write-back of surplus unclaimed | 25 | (32,087) | – |
| Finance cost | 6,328 | 8,499 | |
| Share of profit from investments in equity accounted investments, net | 7 | (23,769) | (18,602) |
| Provision for defined benefits obligation | 18 | 13,431 | |
| 289,787 | 162,778 | ||
| Changes in operating assets and liabilities: | (99,006) | 104,868 | |
| Prepaid expenses and other assets | 413 | 5,222 | |
| Deferred excess of loss premiums | (59,363) | 6,773 | |
| Deferred policy acquisition costs | (20,047) | 200,246 | |
| Reinsurers’ share of gross outstanding claims | (63,651) | (39,459) | |
| Reinsurers’ share of incurred but not reported claims reserve | (380,368) | (33,684) | |
| Reinsurers’ share of gross unearned premiums | (2,233,343) | 218,661 | |
| Receivables, net | 458,816 | 248,850 | |
| Reinsurers’ balances payable | 1,983,649 | 711,887 | |
| Gross unearned premiums | 18,894 | 4,751 | |
| Unearned commission income | 425,327 | (115,923) | |
| Gross outstanding claims | 630,667 | 220,891 | |
| Incurred but not reported claims reserve | (16,686) | (22,124) | |
| Premium deficiency reserve | (511) | (172) | |
| Reserve for takaful activities | (706,045) | ||
| Claims payable, accrued expenses and other liabilities | 1,463,915 | 967,520 | |
| 1,463,915 | (14,779) | ||
| Zakat paid during the year | 20 | (232,241) | (16,253) |
| Surplus paid to policyholders | (4,372) | ||
| Defined benefits obligation paid | 18 | 1,204,027 | (23,275) |
| Net cash flows generated from operating activities | |||
| Investing activities: | |||
| Proceeds from sale of available-for-sale investments | 8 | 3,363,365 | 1,726,137 |
| Purchase of available-for-sale investments | 8 | (2,087,506) | (872,905) |
| Proceeds from maturity of mudaraba/murabaha deposits | 9 | 10,350,370 | 7,221,957 |
| Placement in mudaraba/murabaha deposits | 9 | (12,473,524) | (7,867,623) |
| Dividends and commission income received | 171,780 | 137,415 | |
| Dividends received from investments in equity accounted investments | 7 | 13,261 | 13,690 |
| Proceeds from disposal of property and equipment | 573 | – | |
| Purchase of property, equipment and right-of-use assets, net | 4 | (46,211) | (14,780) |
| Purchase of intangible assets | 5 | (15,650) | (13,938) |
| Net cash flows (used in)/generated from investing activities | (723,542) | 329,953 | |
| Financing activities: | |||
| Repayments of short-term borrowings | – | (400,000) | |
| Dividends paid | (28) | (97,781) | |
| Finance cost paid | – | (5,746) | |
| Repayment of lease liabilities | 17.2 | (9,380) | (7,394) |
| Net cash flows used in financing activities | (9,408) | (510,921) | |
| Net change in cash and cash equivalents during the year | 471,077 | 742,472 | |
| Cash and cash equivalents, beginning of the year | 15 | 1,188,266 | 445,794 |
| Cash and cash equivalents, end of the year | 15 | 1,659,343 | 1,188,266 |
| Non-cash supplemental information: | |||
| Net change in fair value for available-for-sale investments | 8 | (73,231) | 63,652 |
| Share of other comprehensive income of equity accounted investments | 7 | (4,116) | (675) |
| Gain on re-measurement of defined benefits obligation | 18 | 12,422 | 165 |
| Recognition of right-of-use assets | 4 | – | (56,350) |
| Recognition of lease liabilities | 17 | – | 53,917 |
| Transfer to right-of-use assets from prepaid expenses | – | 2,433 | |
Abdulaziz A. AlKhamis
Board Director
Ammr K. Kurdi
Chief Financial Officer
Abdulaziz H. Al Boug
Chief Executive Officer
The accompanying Notes 1 to 40 form an integral part of these consolidated financial statements.
