Gulf Insurance Group — Earnings Release 2011

Jul 19, 2011

AXA Cooperative announces its financial results for the period ended June 30, 2011 (six month) (Continuo)

8250 · 19/07/2011 16:37:24 · Announcement #22373 · View on Saudi Exchange

AXA Cooperative announces its financial results for the period ended June 30, 2011 (six month) (Continuo)

9.The Gross Written Premiums (GWP) for the six month period is 221,503 thousand riyals compare to 101,402 thousand riyals for the same period of previous year with an increase of 118.4%. The Net Written Premiums (NWP) for the six month period ended is 186,627 thousand riyals compared to 93,772 thousand riyals for the same period of previous year with an increase of 99 %.

10. The net claims incurred for the six month period ended is 148,935 thousand riyals, compared to 7,437 thousand riyals for the same period of previous year with an increase of 1902.6 %.

11.There is no investment income for policyholders during the six month period ended. There are no comparatives with the same period of the previous year. The net income on shareholders investments for the six month period ended is 884 thousand riyals, compared to 370 thousand riyals for the same period of previous year with an increase of 138.9 %.

12.Loss for the six month period ended June 30, 2011 is higher compared to same period of the previous year as the company started its insurance operations in February 2010 and there has been an increase in operations of the company. Mainly increase was noted in reinsurance ceded which increased from 7,630 thousand riyals to 34,876 thousand riyals due to higher cession in accident, liability, property and engineering segments.Net claims incurred increased from 7,437 thousand riyals to 148,935 thousand riyals . Administrative expenses increased from 4,493 thousand riyals to 32,952 thousand riyals due to overall increase in operations of the Company.

Emphasis of matter was included by the auditors which drew attention to the note 2 of the financial statements. The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) and not in accordance with standards issued by the Saudi Organization for Certified Accountants and the Company stresses that there is no financial impact on the financial statements as a result of preparation, in accordance with IFRS. Further attention is drawn to note 1, that the company is in the process of acquiring an insurance portfolio from AXA Insurance (Saudi Arabia) B.S.C (c). The acquisition and the value of such portfolio are subject to SAMA and shareholders approval and shall be effective January 1, 2009. Accordingly, the net results related to such portfolio subsequent to January 1, 2009 will also be transferred to the Company.

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