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Emirates Insurance
Report of the Board of Directors for the six months ended 30 June 2023.
The Board of Directors takes pleasure in presenting the unaudited results for the first six months of
2023.
AED '000
Restated
Income Statement June 2023 June 2022
Gross premium Written 674,537 627,874
Insurance revenue 563,600 552,941
Insurance service expenses (295,268) (200,209)
Insurance service result before reinsurance contracts held 268,332 352,732
Net expense from reinsurance contracts held (241,202) (313,749)
Insurance service result 27,130 38,983
Insurance finance (expenses)/income (12,136) 14,639
Reinsurance finance income/(expenses) 9,603 (9,155)
Total Insurance Income 24,597 44,467
Investment Income 55,138 6,602
Other Expenses (19,608) (16,728)
Net Profit for the period 60,127 34,341
Restated
Balance Sheet June 2023 Dec 2022
Shareholders' Equity 1,146,574 1,147,542
Total Assets 2,145,273 2,153,528
Total Liabilities 998,699 1,005,986
Earnings per share (Fils) 0.40 0.23
Management Commentary Q2 2023
IFRS17:
Following the implementation of a new international accounting standard in QI 2023 - IFRS 17- EIC
once more presents its results for Q2 2023 under the new standard. Under IAS8, the implementation of
such a far-reaching new standard requires us, along with all other insurers in the UAE, to restate our
2022 results using the new IFRS 17 methodology.
IFRS 17 does not affect the treatment of our investment portfolio.
The impact of the restatement of the 2022 year on Retained Earnings and shareholders' equity is as
follows:
• FY 2021 and prior = Aed 13.8m
• FY 2022 = (Aed 2.2m)
• Net positive impact beginning of 2023 - Aed 11.6m
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Emirates Insurance Co. (PSC) Incorporated in Abu Dhabi by Law No. 6/82 | Paid-up Capital DH. 150,000,000 | Insurance Company Registration No. 2 eminsco.com(j 1 nl 1 1 J uljl___oil I
Emirates Insurance
Gross written premium:
Under the new standard, it is no longer required to report Gross written premium on the company's
income statement. Despite this, we believe that GWP will remain an important indicator for the
company and the entire industry. GWP increased by 7% compared to the same period for 2022 with
the company experiencing strong growth in our domestic fire and general accident business as well as
engineering.
Insurance Services result before Reinsurance Contracts Held
Insurance Services result before Reinsurance Contracts held declined by 24% compared to
last year. Insurance service expenses increased 48% from 2022, mainly due to higher-than-
expected claims in our Domestic Motor, International Energy and International NM Property
FAC businesses. This was partially offset by the directly attributable expenses ending 3% lower than the
prior year.
Net Expense from Reinsurance Contracts Held
The net expense from Reinsurance Contracts held dropped significantly by 24 % from Hl_22 following
some reorganization of our motor and medical segments.
Insurance Service Result
The insurance service result decreased by 30% from Q2_2022. The result ratio for 2023 YTD is 4.8%
compared to 7% for the same period last year. We are expecting the Insurance Service result to improve
over the year as we see the benefits of our revised reinsurance strategy combined with the release
of Unearned Premium in H2_2O23.
Insurance and Reinsurance finance income/texpenses)
Insurance and Reinsurance finance income/(expenses) relate to the effect of discounting of cash flows
on insurance contract liabilities and reinsurance contract assets, because of changes in market interest
rates. The Net Insurance and reinsurance finance expenses decreased from a net income of Aed5.4m to
a net expense of Aed2.5m for 2023 year to date.
Investment Performance:
EIC's Investment portfolio enjoyed yet another strong quarter with our P&L Income improving to AED
55.1m, 7.4x higher compared to the same period last year. EIC's strategic book further bolstered our
overall investment performance with our total portfolio generating an attractive 6-month Holding
Period Return of 4.4%, which in turn, contributes to EIC's improving solvency margins.
On a macro level, regional markets lagged the Global Developed Markets with the S&P 500 leading the
pack rallying 17% on a YTD basis. In terms of fixed income, the higher yields by virtue of the Fed's
aggressive hiking cycle last year normalized the asset class's returns.
EIC's tactical positioning across risk asset classes has allowed us to capitalize on the market
rally and pursue some opportunistic trades that generated a positive alpha. Going forward
and considering the global backdrop where macro headwinds are likely to intensify, we reserve a
cautious stance that warrants employing some risk mitigating measures across the portfolio.
Other expenses
These expenses relate to operating expenses which cannot be attributed directly to the insurance
business of the company. Other expenses increased by 16.4% from Q2_2022 mainly due to one off
consulting expenses.
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Emirates Insurance
Net Profit
Our net profit for the year-to-date amounts to Aed60m compared to Aed34m in the same period last
year. This strong performance is mainly attributable to the investment portfolio.
Balance Sheet:
The Total Assets of the Company have decreased by Aed8m since December 2022 to Aed2.145 billion,
mainly due to the decrease in cash because of the Aed75m dividend paid to the shareholders.
Shareholders Equity remained flat from December 2022 despite the dividend mentioned above. The
restatement of the retained earnings also contributed as well as the overall positive performance of the
investment portfolio.
Our liquidity, solvency and working capital position continues to remain very strong at 495m, an
increase of 7.8% compared to June 2022.
Abdullah Al Mazrui
Chairman
14 August 2023
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Emirates Insurance Co. (PSC) Incorporated in Abu Dhabi by Law No. 6/82 | Paid-up Capital DH. 150,000,000 | Insurance Company Registration No. 2 eminsco.com

Sentiment: positive