Dubai Islamic Insurance & Reinsurance Aman P J S C : Financial Statement 31/12/2021 – Download

Dubai Islamic Insurance & Reinsurance Company (AMAN) (P.J.S.C)

Directors' report, independent auditor's report and consolidated financial statements for the year ended 31 December 2021

Dubai Islamic Insurance & Reinsurance Company (AMAN) (P.J.S.C)

Directors' report, independent auditor's report and consolidated financial statements for the year ended 31 December 2021

Table of contents

PagesBoard of Directors' report

1

Independent auditor's report

2 - 7

Consolidated statement of financial position

8 - 9

Consolidated statement of income 10

Consolidated statement of comprehensive income 11

Consolidated statement of changes in equity

12 - 13

Consolidated statement of cash flows

14 - 15

Notes to the consolidated financial statements

16 - 85

Independent auditor's report to the shareholders of Dubai Islamic Insurance & Reinsurance Company (AMAN) (P.J.S.C)

Report on the audit of the consolidated financial statements

Our opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated f inancial position of Dubai Islamic Insurance & Reinsurance Company (AMAN) (P.J.S.C) (the "Company") and its subsidiaries (together the "Group") as at 31 December 2021, and its consolidated financial perf ormance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards.

What we have audited

The Group's consolidated financial statements comprise:

• • the consolidated statement of financial position as at 31 December 2021;

• • the consolidated statement of income for the year then ended;

• • the consolidated statement of comprehensive income for the year then ended;

• • the consolidated statement of changes in equity for the year then ended;

• • the consolidated statement of cash flows for the year then ended; and

• • the notes to the consolidated financial statements, which include significant accounting policies and other explanatory information.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are f urther described in the Auditor's responsibilities for the audit of the consolidated financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code) and the ethical requirements that are relevant to our audit of the f inancial statements in the United Arab Emirates. We have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA code.

Emphasis of matter

We draw attention to Note 37 to the consolidated financial statements, which describes that financial assets measured at fair value through other comprehensive income, with a total carrying value of AED 9.1 million at 31 December 2021 are continue to be held in the name of the former Chief Executive Officer of the Company for the beneficial interest of the Group. Our opinion is not modified in respect of this matter.

PricewaterhouseCoopers (Dubai Branch), License no. 102451

Emaar Square, Building 5, P O Box 11987, Dubai - United Arab Emirates T: [phone], F: [phone],www.pwc.com/me

Jacques Fakhoury, Douglas O'Mahony, Murad Alnsour and Rami Sarhan are registered as practising auditors with the

UAE Ministry of Economy

2

Independent auditor's report to the shareholders of Dubai Islamic Insurance & Reinsurance Company (AMAN) (P.J.S.C) (continued)

Our audit approach

Overview

Key Audit Matters

• • Valuation of takaful contract liabilitiesAs part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated financial statements. In particular, we considered where management made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key Audit Matter

How our audit addressed the Key audit matter

atter

Valuation of takaful contract liabilities

As disclosed in note 7 to these consolidated financial statements, the Group's gross takaful contract liabilities amounted to AED 1,094 million as at 31 December 2021.

Note 7 to these consolidated financial statements presents the elements that make up the takaful contract liabilities balance, the most judgemental elements of which are as follows:

Claims reported unsettled

Claims reported unsettled is a material balance within the consolidated financial statements and is also highly judgmental and can be complex to calculate in certain instances. The claims reported unsettled are a best estimate of all claims incurred but not settled at the reporting date.

Claims incurred but not reported

This reserve represents the liability for claims incurred but not reported at the end of the reporting period which is determined through an independent actuarial valuation, considering the Group's historical loss experience.

As part of our audit procedures, we:

• • understood, evaluated and tested key controls relating to the review process of quarterly and annual reserves by management and the external appointed actuary;

• • understood, evaluated and tested key controls relating to the reserve setting process of the Group.

For claims reported unsettled, we:

• • checked on a sample basis the claims reported unsettled against supporting documentation, such as loss adjusters' reports;

• • compared on a sample basis the claims reported unsettled with the subsequent payments, if settled or subsequent reserve amounts, if unsettled.

For incurred but not reported claims reserve, we:

• • re-performed reconciliations between the data used in the actuarial reserving calculations and the underlying accounting records of the Group;

• • evaluated the competence, objectivity and independence of the Group's appointed external actuaries as well as our internal actuarial experts;

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