Appendix (1)

Insurance Company Financial Statement Forms (with Disclosures)

Consolidated refers to a group of companies running Insurance of Persons and Fund Accumulation Operations on one hand, and Property and Liability Insurance on another.
The cash flow and change in shareholders' equity format under consolidated financial statements is applicable to individual financial statements to be prepared for Insurance of Persons, Fund Accumulation Operations, Property and Liability Insurance.


 

Balance at December 31,20XX
Profit/Loss for the year
Other comprehensive income/loss for the year
Total comprehensive loss for the year
Dividends
Issue of bonus shares
Balance at December 31,20YY
Profit/Loss for the year
Other comprehensive income/loss for the year
Total comprehensive loss for the year Dividends
Issue of bonus shares
Balance at December 31, 20ZZ

Notes to the Financial Statements

1. Disclosure over the financial statements is made in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and its interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC), and according to the templates identified by the Authority.
    
2. Notes to financial statements include the following:
   •  
   • 2.1 General information.
   •  
   • 2.2 Adoption of new and revised International Financial Reporting Standards (IFRSs).
   •  
   • 2.3 Summary of significant Accounting Policies which include:
      
     1. Statement of compliance.
         
     2. Basis of preparation.
         
     3. Basis of consolidation.
         
     4. Business combinations.
         
     5. Goodwill.
         
     6. Insurance contracts.
         
     7. Revenue recognition.
         
     8. General and administrative expenses.
         
     9. Foreign currencies.
         
     10. Property, machinery and equipment.
          
     11. Investment properties.
          
     12. Impairment of non-financial assets.
          
     13. Provisions.
          
     14. Financial instruments.
          
     15. Financial assets.
          
     16. Financial liabilities.
          
     17. Dividend distribution.
          
     18. Others.
          
   2.4 Accounting assumptions and key sources of estimation of uncertainty.
   
   2.5 Property, machinery and equipment.
   
   2.6 Investment properties.
   
   2.7 Financial investments.
   
   2.8 Statutory deposits.
   
   2.9 Insurance contract liabilities and reinsurance contract assets.
   
   2.10 Insurance receivables.
   
   2.11 Bank balances and cash.
   
   2.12 Share Capital.
   
   2.13 Reserves.
   
   2.14 Bank borrowings.
   
   2.15 Insurance payables and others.
   
   2.16 Net investment income / loss.
   
   2.17 Related party transactions.
   
   2.18 Segment information.
   
   2.19 Contingent liabilities.
   
   2.20 Commitments.
   
   2.21 Insurance risk.
   
   2.22 Capital risk management.
   
   2.23 Financial instruments.
   
   2.24 Dividends.
   
   2.25 Approval of financial statements.
   
   2.26 Others.
    
3. In addition to the above, the Company should disclose the following:
    

   • 3.1 Gross Premium

     This item is to comprise all amounts due during the financial year in respect of insurance contracts entered into regardless of the fact that such amounts may relate in whole or in part to a later financial year, and must include the following:

     1. Premiums yet to be determined, where the premium calculation can be done only at the end of the year;
         
     2. Single premiums, including annuity premiums, and, in long-term business, single premiums resulting from bonus and rebate provisions in so far as they must be considered as premiums under the terms of the contract;
         
     3. Additional premiums in the case of half-yearly, quarterly or monthly payments and additional payments from policyholders for expenses borne by the Company;
         
     4. In the case of co-insurance, the Company's portion of total premiums;
         
     5. Reinsurance premiums due from ceding and retroceding insurance undertakings, including portfolio entries, after deduction of cancellations and portfolio withdrawals credited to ceding and retroceding insurance undertakings.
         

1. 3.2 Statutory Deposit

   In accordance with Federal Law No. (6) of 2007, the Company shall place a deposit at a Bank in the State as guarantee of fulfilling its liabilities and amounting to AED 4 million for Insurance of Persons and Fund Accumulation Operations, and AED 2 million per line of business for Property and Liability Insurance, not to exceed AED 6 million.

2. 3.3 Insurance Receivables

   This item consists of the following:

   	December 31,
   	20XX	20YY
   	AED	AED
   Due from Policyholders Less: Allowance for Doubtful Debts Due from insurance/ reinsurance companies Due from brokers/ agents Less: Allowance for Doubtful Debts Insurance Receivable - Net

   Inside UAE:

   	December 31,
   	20XX	20YY
   	AED	AED
   Due from Policyholders Less: Allowance for Doubtful Debts Due from insurance/ reinsurance companies Due from brokers/ agents Less: Allowance for Doubtful Debts

   Insurance Receivable - Net

   Note: The receivables ageing details to be disclosed separately for policyholders, reinsurance inward, reinsurance outward, brokers and agents in the below format:

   Inside UAE

   Less than 30 days

   30 - 90 days

   91 - 180 days

   181 - 270 days

   271 - 360 days

   More than 360 days

   Total

   Outside UAE

   Less than 30 days

   30 - 90 days

   91 - 180 days

   181 - 270 days

   271 - 360 days

   More than 360 days

   Total

   Movement on the provision for doubtful debts during the year was as follows:

   	20XX	20YY
   	AED	AED
   Balance at the beginning of the year Additions Balance at year end

   
    

3. 3.4 Other Receivables and Prepayments

   	December 31,
   	20XX	20YY
   	AED	AED
   Receivable from Employees Refundable Deposits Prepayments Others Other Receivables and Prepayments

   
    

4. 3.5 Issued Share Capital

   Subscribed and paid - up capital amounted to AED XX distributed over XX shares, the par value of each is AED 1 as of December 31, 20XX (against AED XX million shares of AED 1 each as of December 31,20YY).

5. 3.6 Payables

   This item consists of the following:

   	December 31,
   	20XX	20YY
   	AED	AED
   Payables - Inside UAE Payables - Outside UAE Other payables Total

   Inside UAE:

   	December 31,
   	20XX	20YY
   	AED	AED
   Accounts Payable - Insurance Companies Receivable Reinsurance Companies Receivable Accounts Payable - Receivable from Agents Receivable from Brokers Receivable from Employees Other payables Total

   Outside UAE:

   	December 31,
   	20XX	20YY
   	AED	AED
   Accounts Payable - Article (1): Insurance Companies Receivable Reinsurance Companies Receivable Accounts Payable - Article (2): Receivable from Agents Receivable from Brokers Receivable from Employees Other payables Total

   
    

6. 3.7 Technical Provisions

   This item consists of the following:

   	December 31,
   	20XX	20YY
   	AED	AED
   Insurance of Persons and Fund Accumulation: Unearned Premium Reserve Incurred but Not Reported Reserve (Short-term life and Fund Accumulation products of one year) Mathematical Reserve Allocated Loss Adjustment Expense Reserve Unallocated Loss Adjustment Expense Reserve Total Insurance of Person and Fund Accumulation Operations Note: Technical provisions details in the above format to be provided for each class of insurance as defined by the Authority. Property and Liability Insurance: Unearned Premium Reserve Incurred but Not Reported Reserve Unallocated Loss Adjustment Expense Reserve Total Property and Liability insurance Technical Provisions Total Technical Provisions

   Note: Technical provisions details in the above format to be provided for each class of insurance as defined by the Authority.

   Adequate explanation for the method adopted should be given and the method should be consistent from year to year for technical provisions. In case the Actuary decides to change the method being used from previous years, sufficient explanation to the same needs should be provided.

   
    

7. 3.8 Summary of the Actuary's report on the Technical Provisions

8. 3.9 Net Premium

    

   1. Gross premiums

      	December 31,
      	20XX	20YY
      	AED	AED
      Insurance of Persons and Funds Accumulation Operations Total Gross Premiums Insurance of Persons and Fund Accumulation operations Property and Liability insurance Total Gross Premiums for Property and Liability insurance Change in unearned premiums reserves Total Gross Premiums

      Note: Gross Premium details in the above format to be provided for each class of insurance as defined by the Authority.

      
       

   2. Premiums ceded to reinsurers

      	December 31,
      	20XX	20YY
      	AED	AED
      Insurance of Persons and Funds Accumulation Operations: Total Insurance of Persons and Fund Accumulation operations Insurance Premiums Ceded to Reinsurers: Property and Liability insurance: Total Property and Liability insurance Premiums Ceded to Reinsurers Change in unearned premiums reserves Total Premiums Ceded to Reinsurers

      Note: Premium ceded to reinsurers details in the above format to be provided for each class of insurance as defined by the Authority.

      
       

   3. Reinsurance share of accepted business premiums

      	20XX	20YY
      	AED	AED
      Insurance of Persons and Funds Accumulation Operations Total Insurance of Persons and Fund Accumulation operations Insurance Premiums for accepted share of reinsurance business Property and Liability insurance Total Property and Liability insurance Premiums for accepted share of reinsurance business Change in unearned premiums reserves Total Premiums for accepted share of reinsurance business

      Note: Reinsurance share of accepted business premium details in the above format to be provided for each class of insurance as defined by the Authority.

      Total Net Premium (a-b+c)	20XX	20YY
      	AED	AED

   
    

9. 3.10 Net Claims Paid

    

   1. Gross claims paid

      	20XX	20YY
      	AED	AED
      Total Gross Claims Insurance of Persons and Fund Accumulation operations Total Gross Claims for Property and Liability insurance Total Gross Claims

      Note: Gross Claims Paid details in the above format to be provided for each class of insurance as defined by the Authority.

      
       

   2. Reinsurance share of claims

      	December 31,
      	20XX	20YY
      	AED	AED
      Total Insurance of Persons and Fund Accumulation operations Insurance Claims Ceded to Reinsurers Total Property and Liability insurance Claims Ceded to Reinsurers Total Claims Ceded to Reinsurers

      Note: Claims ceded to reinsurers details in the above format to be provided for each class of insurance as defined by the Authority.

      
       

   3. Reinsurance share of accepted business claims

      	20XX	20YY
      	AED	AED
      Insurance of Persons and Funds Accumulation Operations Total Insurance of Persons and Fund Accumulation operations Insurance Claims for accepted share of reinsurance business Property and Liability insurance Total Property and Liability insurance Claims for accepted share of reinsurance business Total Claims for accepted share of reinsurance business

      Note: Reinsurance share of accepted business claims details in the above format to be provided for each class of insurance as defined by the Authority.

      Total Net Claims (a - b + c)	20XX	20YY
      	AED	AED

   
    

10. 3.11 Capital risk management

    The solvency regulations identify the required Solvency Margin to be held in addition to insurance liabilities. The Solvency Margin (presented in the table below) must be maintained at all times throughout the year. The Company is subject to solvency regulations which it has complied with during the year. The Company has incorporated in its policies and procedures the necessary tests to ensure continuous and full compliance with such regulations.

    The table below summarizes the Minimum Capital Requirement, Minimum Guarantee Fund and Solvency Capital Requirement of the Company and the total capital held to meet these required Solvency Margins.

    	December 31,
    	20XX	20YY
    	AED	AED
    Minimum Capital Requirement (MCR) Solvency Capital Requirement (SCR) Minimum Guarantee Fund (MGF) Own Funds Basic Own Funds Ancillary Own Funds MCR Solvency Margin - Minimum Capital Requirement (Surplus/Deficit) MCR Solvency Margin Solvency Capital Requirement (Surplus/Deficit) MCR Solvency Margin Minimum Guarantee Fund (Surplus/Deficit)

    
     

11. 3.12 Risk management

    The listed risks should be disclosed in detailed, as a minimum:

     
    1. Underwriting Risk.
        
    2. Market and Liquidity (Investment) Risk.
        
    3. Credit Risk.
        
    4. Operational Risk.
    
     

12. 3.13 Claims development schedule