QIC FS 31 March 2021 - Final

Qatar Insurance Company Q.S.P.C.

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITOR’S REVIEW REPORT

FOR THE THREE MONTHS PERIOD ENDED 31 MARCH 2021

Qatar Insurance Company Q.S.P.C. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the three months period ended 31 March 2021

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1 STATUS AND OPERATIONS Qatar Insurance Company Q.S.P.C. (the “Parent Company”) is a public shareholding company incorporated in the State of Qatar in the year 1964 under Commercial Registration No. 20 and governed by the provisions of the Qatar Commercial Companies’ Law and Qatar Central Bank’s insurance regulations. The Parent Company and its subsidiaries (the “Group”) are engaged in the business of insurance, reinsurance, real estate and financial advisory services. The head office of the Group is at QIC Building, Tamin Street, West Bay, P.O. Box 666, Doha, State of Qatar. The Parent Company’s shares are listed on Qatar Stock Exchange. The Group operates in the State of Qatar, United Arab Emirates, Sultanate of Oman, State of Kuwait, United Kingdom, Switzerland, Bermuda, Singapore, Gibraltar, Italy, Jersey, Cayman Islands and Malta. 2 BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES 2.1 Basis of preparation The interim condensed consolidated financial statements for the three months period ended 31 March 2021 have been prepared in accordance with IAS 34 - “Interim Financial Reporting” and the applicable provisions of the Qatar Central Bank regulations, under the historical cost convention except for certain financial instruments which are stated at fair value. The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. The Directors consider that there are no material uncertainties that may cast doubt significant doubt over this assumption. They have formed a judgement that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, and not less than 12 months from the end of the reporting period. The interim condensed consolidated financial statements are presented in Qatari Riyals (“QR”), which is the Group’s functional and presentation currency except as otherwise indicated, financial information presented in QR has been rounded to the nearest thousand. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s annual consolidated financial statements as at 31 December 2020. In addition, results for the three months period ended 31 March 2021 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2021. Changes to significant accounting policies are described in Note 2.2. The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December 2020 except for noted above. The interim condensed consolidated financial statements for the three months period from 1 January 2020 to 31 March 2020 were neither audited nor reviewed. These are presented for comparison purposes only. These interim condensed consolidated financial statements were approved by the Board of Directors and signed on its behalf on 27 April 2021. 2.2 New standards, interpretations and amendments adopted by the Group The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December 2020, except for the adoption of new standards effective as of 1 January 2021. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. Several amendments and interpretations apply for the first time in 2021, but do not have an impact on the interim condensed consolidated financial statements of the Group


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2 BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.2 New standards, interpretations and amendments adopted by the Group (continued) Interest Rate Benchmark Reform – Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). The amendments include the following practical expedients:

• A practical expedient to require contractual changes, or changes to cash flows that are directly required by the reform, to be treated as changes to a floating interest rate, equivalent to a movement in a market rate of interest

• Permit changes required by IBOR reform to be made to hedge designations and hedge documentation without the hedging relationship being discontinued

• Provide temporary relief to entities from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component

These amendments had no impact on the interim condensed consolidated financial statements of the Group. The Group intends to use the practical expedients in future periods if they become applicable. 2.3 New and revised IFRSs in issue but not yet effective The following new accounting standard and interpretations have been issued but are not yet effective. The Group is currently evaluating the impact of these new standards. IFRS 17 Insurance Contracts - Standard issued in May 2018 IFRS 17 Insurance Contracts establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts issued. It also requires similar principles to be applied to reinsurance contracts held and investment contracts with discretionary participation features issued. The standard is effective for annual periods beginning on or after 1 January 2023 with an earlier application is permitted. IFRS 17 provides comprehensive guidance on accounting for insurance contracts and investment contracts with discretionary participation features. For general insurance contracts, IFRS 17 requires discounting of loss reserves expected to be paid in more than one year as well as risk adjustment, for which confidence level equivalent disclosure will be required. In order to further evaluate the effects of adopting IFRS 17, an IFRS 17 Group Implementation Team has been set up sponsored by the Group Chief Financial Officer, comprising senior management from Finance, Risk, Operations and Investment Operations. Implementation team has successfully completed the first phase (Gap analysis) and currently working on the detailed operational and financial impact. Standard / Interpretation Effective date Amendments to IAS 1: Classification of Liabilities as Current or Non-current 1 January 2023 Amendments to IFRS 3: Reference to the Conceptual Framework 1 January 2022 Amendments to IAS 16: Property, Plant and Equipment: Proceeds before Intended Use 1 January 2022 Amendments to IAS 37: Onerous Contracts - Costs of Fulfilling a Contract 1 January 2022 Amendments to IFRS 1: Subsidiary as a first-time adopter 1 January 2022 Amendments to IFRS 9: Fees in the ‘10 per cent’ test for derecognition of financial liabilities 1 January 2022 Amendments to IAS 41: Taxation in fair value measurements 1 January 2022 2.4 Use of estimates and judgments The preparation of the interim condensed consolidated financial statements in conformity with International Financial Reporting Standards (“IFRS”) requires management to make judgements, estimates and assumptions that affects the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.


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2 BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.4 Use of estimates and judgments (continued) In preparing these interim consolidated financial statements, the significant judgments made by management in applying the Group’s accounting policies were the same as those applied to the consolidated financial statements as at and for the year ended 31 December 2020. 3 CASH AND SHORT-TERM DEPOSITS

31 March 31 December 2021 2020 QR (‘000) QR (‘000) (Reviewed) (Audited) Cash at banks 1,655,837 1,280,302 Short-term deposits 6,250,484 6,931,809 Total cash and cash equivalents 7,906,321 8,212,111

All deposits are subject to an average variable interest rate of 2.23% (2020: 2.93 %). The expected credit losses relating to short-term deposits measured at amortised cost amounted to QR 4,105 thousand (2020: QR 5,228 thousand). All short-term deposits measured at amortised cost were in stage 1. 4 INSURANCE AND OTHER RECEIVABLES 31 March 31 December 2021 2020 QR (‘000) QR (‘000) (Reviewed) (Audited) Receivables from policyholders Due from policyholders 4,195,975 3,647,314 Impairment losses on doubtful receivables (45,478) (44,813) 4,150,497 3,602,501 Receivables from reinsurers Due from insurance companies 3,718,065 3,358,782 Impairment losses on doubtful receivables (48,381) (47,403) 3,669,684 3,311,379 Other receivables Staff advances against indemnity 55,997 55,187 Deferred acquisition cost 1,411,424 1,339,990 Prepayments and others 361,876 695,343 1,829,297 2,090,520 9,649,478 9,004,400

Prepayment and others include an amount of QR 326 million (GBP: 65 million) (2020: QR 334 million (GBP 67 million)), net of ECL, as an indemnification asset, through Qatar Re, for uncertainties about the settlement amounts of certain insurance liabilities acquired.


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5 INSURANCE CONTRACT LIABILITIES AND REINSURANCE CONTRACT ASSETS

31 March 31 December 2021 2020 QR (‘000) QR (‘000) (Reviewed) (Audited) Gross insurance contract liabilities Claims reported and unsettled 11,423,738 11,441,827 Claims incurred but not reported 6,241,511 6,017,323 Unearned premiums 6,136,471 5,621,835

23,801,720 23,080,985 Reinsurers’ share of insurance contract liabilities Claims reported and unsettled 4,106,561 3,952,034 Claims incurred but not reported 1,844,042 1,730,350 Unearned premiums 2,058,393 1,620,480 8,008,996 7,302,864 Net insurance contract liabilities Claims reported and unsettled 7,317,177 7,489,793 Claims incurred but not reported 4,397,469 4,286,973 Unearned premiums 4,078,078 4,001,355 15,792,724 15,778,121

6 INVESTMENTS

31 March 31 December 2021 2020 QR (‘000) QR (‘000) (Reviewed) (Audited) Financial investments at fair value through profit or loss (FVTPL) 3,820,214 3,541,704 Financial investments at fair value through other comprehensive income (FVOCI)

12,981,565

13,016,220

16,801,779 16,557,924 Investments classified as FVOCI are all stage 1 except QR 989 million stage 2 debt instruments. There have been no movements of investments classified as FVOCI from stage 1 to stage 2. The expected credit losses relating to debt securities measured at FVOCI amounted to QR 51,268 thousand at 31 March 2021 (2020: QR 57,058 thousand). The expected credit losses relating to securities at FVOCI in stage 1 was QR 30,386 thousand (2020: QR 36,626 thousand) and stage 2 was QR 20,432 thousand (2020: QR 20,432 thousand).


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7 INVESTMENT PROPERTIES 31 March 31 December 2021 2020 QR (‘000) QR (‘000) (Reviewed) (Audited) Balance as at 1 January 479,451 596,004 Additions - 556 Effect of foreign currency exchange difference 4,321 12,909 Disposal - (112,834) Depreciation (3,027) (17,184) At 31 March / 31 December 480,745 479,451

The rental income arising during the period amounted to QR 7,835 thousand (2020: QR 10,015 thousand) and direct operating expenses (included within general and administrative expenses) arising in respect of such properties during the period was QR 2,728 thousand (2020: QR 3,747 thousand). The fair value of investment properties was estimated by Management’s external valuer, by reference to market evidence of recent transactions for similar properties. The estimated fair value of the above investment properties as at 31 December 2020 were QR 584 million. Management believes that the fair value as at 31 March 2021 does not materially differ from the fair value on 31 December 2020 had the fair valuation been carried out on that date. Properties owned by the Group in United Kingdom with a carrying value of QR 281 million as at 31 March 2021 is pledged as a security for the borrowings. The Group has no restrictions on the realisability of its investment properties, other than the property in United Kingdom, and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements. 8 RELATED PARTY DISCLOSURES Related parties represent major shareholders, directors and key management personnel of the Group and entities controlled, jointly controlled or significantly influenced by such parties. Pricing policies and terms of these transactions are approved by the Group’s management. Related party transactions These represent transactions with related parties, i.e. Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions and directors of the Group and companies of which they are key management personnel. Pricing policies and terms of these transactions are approved by the Group’s management and are negotiated under normal commercial terms. Significant transactions were:

For the three months period ended For the three months period ended 31 March 2021 31 March 2020

Premiums

Purchase of services

Claims

Premiums

Purchase of services

Claims

QR (000) QR (000) QR (000) QR (000) QR (000) QR (000) Affiliate Companies Al Fardan Group 5,368 - 4,043 6,593 1 3,846 Al Jaidah Group 767 - 1,717 763 - 4,583 Massoun Insurance Services L.L.C.

(704) - - (557) - -

Others 264 - 16 473 - 78 Total 5,695 - 5,776 7,272 1 8,507


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8 RELATED PARTY DISCLOSURES (CONTINUED) Related party balances Balances of related parties included in the interim consolidated statement of financial position are as follows:

Due from related parties

31 March 2021

31

December 2020

QR ('000) QR ('000)

Affiliate Companies

Al Fardan Group 1,265 339 Al Jaidah Group 1,293 2,245 Al Liwan Real Estate Company W.L.L. 512 374 Others 1,878 1,733 Total 4,948 4,691

Due to related parties

31 March 2021

31

December 2020

QR ('000) QR ('000)

Affiliate Companies

QLM Life & Medical Insurance Company Q.P.S.C 46,730 45,986 Massoun Insurance Services L.L.C 4,037 2,044

Total 50,767 48,030

Outstanding related party balances at the reporting date are unsecured and interest free and no impairment losses relating to these balances were recognised during the period (2020: Nil). Compensation of key management personnel The remuneration of directors and other members of key management during the period were as follows: 31 March 31 March 2021 2020 QR (‘000) QR (‘000) (Reviewed) (Unreviewed) Salaries and other short term benefits 10,620 10,538 End of service benefits 476 437 11,096 10,975


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9 SEGMENT INFORMATION

For management reporting purposes, the Group is organised into six business segments - Marine & Aviation, Property & Casualty, Health & Life, Real Estate, Advisory and Investments. These segments are the basis on which the Group reports its operating segment information. Segment statement of profit or loss for the three months period ended 31 March 2021:

Marine

and aviation Property

and casualty Health and life

Total insurance Real estate Advisory Investments

Unallocated income

(expenses) Total QR (‘000) QR (‘000) QR (‘000) QR (‘000) QR (‘000) QR (‘000) QR (‘000) QR (‘000) QR (‘000)

Gross premiums 346,276 2,709,930 115,695 3,171,901 - - - - 3,171,901 Premiums ceded to reinsurers (103,763) (1,029,497) (49,538) (1,182,798) - - - - (1,182,798) Net premiums 242,513 1,680,433 66,157 1,989,103 - - - - 1,989,103 Movement in unexpired risk reserve (89,685) 23,067 (8,124) (74,742) - - - - (74,742) Net earned premiums 152,828 1,703,500 58,033 1,914,361 - - - - 1,914,361 Gross claims paid (104,776) (1,831,275) (93,690) (2,029,741) - - - - (2,029,741) Reinsurance recoveries 13,262 554,584 52,119 619,965 - - - - 619,965 Movement in outstanding claims 42,768 134,642 (3,220) 174,190 - - - - 174,190 Net commissions (33,244) (485,300) (6,079) (524,623) - - - - (524,623) Other insurance income (unallocated) 2,777 - - - - 2,777 Net underwriting results 70,838 76,151 7,163 156,929 - - - - 156,929 Rental income - - - - 7,835 - - - 7,835 Advisory fees - - - - - 6,965 - - 6,965 Investment income and other income - - - - - - 260,136 - 260,136 Finance cost - - - - - - (8,723) - (8,723) Total income - - - 156,929 7,835 6,965 251,413 - 423,142 Operating and administrative expenses - - - (152,830) (2,728) (7,779) - (32,673) (196,010) Depreciation and amortization - - - - (3,027) (11) - (17,368) (20,406) Profit before share of profit of associates and joint venture - - - 4,099 2,080 (825) 251,413 (50,041) 206,726 Share of profit of associates and joint venture - - - - - - - 8,781 8,781 Profit / (loss) before income tax - - - 4,099 2,080 (825) 251,413 (41,260) 215,507 Income tax expense - - - - - - - (10,714) (10,714) Profit for the period - - - 4,099 2,080 (825) 251,413 (51,974) 204,793


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9 SEGMENT INFORMATION (CONTINUED)

Segment statement of profit or loss for the three months period ended 31 March 2020:

Marine

and aviation Property

and casualty Health and life

Total insurance Real estate Advisory Investments

Unallocated income

(expenses) Total QR (‘000) QR (‘000) QR (‘000) QR (‘000) QR (‘000) QR (‘000) QR (‘000) QR (‘000) QR (‘000)

Gross premiums 314,689 2,901,103 152,722 3,368,514 - - - - 3,368,514 Premiums ceded to reinsurers (90,931) (543,536) (69,734) (704,201) - - - - (704,201) Net premiums 223,758 2,357,567 82,988 2,664,313 - - - - 2,664,313 Movement in unexpired risk reserve (57,487) (101,489) (18,243) (177,219) - - - - (177,219) Net earned premiums 166,271 2,256,078 64,745 2,487,094 - - - - 2,487,094 Gross claims paid (156,491) (1,829,505) (119,944) (2,105,940) - - - - (2,105,940) Reinsurance recoveries 22,935 421,010 65,755 509,700 - - - - 509,700 Movement in outstanding claims 5,636 (226,736) (1,098) (222,198) - - - - (222,198) Net commissions (31,369) (696,025) (10,345) (737,739) - - - - (737,739) Other insurance income (unallocated) - - - 534 - - - - 534 Net underwriting results 6,982 (75,178) (887) (68,549) - - - - (68,549) Rental income 10,015 - - - 10,015 Advisory fees - - - - - 6,142 - 6,142 Investment income and other income - - - - - - 27,730 - 27,730 Finance cost - - - - - - (13,672) - (13,672) Total income (68,549) 10,015 6,142 14,058 - (38,334) Operating and administrative expenses - - - (127,592) (3,747) (7,803) - (250) (139,392) Depreciation and amortization - - - (3,731) (12) - (14,395) (18,138) Profit before share of profit of associates and joint venture - - - (196,141) 2,537 (1,673) 14,058 (14,645) (195,864) Share of profit of associates and joint venture - - - 4,043 4,043 (Loss) / profit before income tax (196,141) 2,537 (1,673) 14,058 (10,602) (191,821) Income tax expense - - - (4,863) (4,863) (Loss) / profit for the year from continuing operations - - - (196,141) 2,537 (1,673) 14,058 (15,465) (196,684) Profit for the year from discontinued operations 10,275 10,275 (Loss) / profit for the period - - - (196,141) 2,537 (1,673) 14,058 (5,190) (186,409)

Segment statement of financial position Assets and liabilities of the Group are commonly used across the primary segments.

Qatar Insurance Company Q.S.P.C. INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 31 March 2021

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10 BASIC AND DILUTED EARNINGS PER SHARE The basic and diluted earnings per share for the period are the same as there are no dilutive effects on earnings.

For the three months period ended 31 March 31 March 2021 2020 (QR ‘000) (QR ‘000) (Reviewed) (Unreviewed) Net profit / (loss) attributable to owners of the Parent Company (QR ‘000)

200,634

(185,024)

Less: Interest on subordinated perpetual debt (20,270) (20,270) 180,364 (205,294) Weighted average number of ordinary shares (‘000) 3,266,101 3,266,101 Basic and diluted earnings per share (QR) 0.055 (0.063)

11 DIVIDEND AND BONUS SHARES The Board proposed nil dividend for the year 2020 due to the insufficient profit achieved and the same was approved at the Annual General Meeting held on 9 March 2021 (2020: Dividend of QR 1.50 per share). 12 SHARE CAPITAL AND SHARE PREMIUM 12.1 Share capital

31 March

2021 31 December

2020 (Reviewed) (Audited) Authorised, issued and fully paid up Share capital (QR’000) 3,266,101 3,266,101

Number of shares of QR 1 each 3,266,101,330 3,266,101,330

12.2 Share premium Share premium is the proceeds received from the rights issue, net of any directly attributable transaction costs. The nominal value of the shares were recorded under share capital while the excess of the issue price over the nominal value was recorded under share premium. 13 LEGAL RESERVE Legal reserve is computed in accordance with the provisions of the Qatar Central Bank (QCB) regulations, applicable provisions of Qatar Commercial Companies’ Law and the company’s Articles of Association at 10% of the net profit for the year. On 23 November 2014, at an Extra-Ordinary General Meeting the Board of Directors approved an amendment to paragraph (1), Article (66) of the Articles of Association of the Company. The amendment states that transfers to the legal reserve shall be made until it equates 100% of the paid up capital. The reserve is not available for distribution except in circumstances specified in the Qatar Central Bank (QCB) regulations/Qatar Commercial Companies Law. The legal reserve also includes the Group’s share in legal reserve arising out of its subsidiaries.


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14 OTHER COMPONENTS OF EQUITY Other components of equity include foreign currency translation reserve, merger reserves and share of profit of associates and joint venture. As per the Qatar Central Bank’s instruction dated 4 March 2019, share of profit of associates and joint venture should be transferred from retained earnings to reserve for share of profit of associates and joint venture accordingly the prior year retained earnings have been reclassified. Declared and received dividends from associates and joint venture are the only distributable portion of this reserve. 15 SUBORDINATED PERPETUAL DEBT In 2017, in an effort to strengthen the capital base of Qatar Re (the “Issuer”), a subsidiary of the Group registered in Bermuda, subordinated Tier 2 qualifying capital notes amounting to QR 1,615,596 thousand net. These were issued through the Irish Stock Exchange, and the Parent Company acts as the guarantor to the notes. The notes were issued in registered form at par value, in denominations of USD 200,000 and integral multiples of USD 1,000 in excess thereof. The notes do not have a stated maturity date and are perpetual in nature, and do not obligate the Issuer to repay or settle by delivery of cash or another financial asset. The notes are listed on the Irish Stock Exchange. In 2020, the Group issued perpetual subordinated Tier 2 qualifying capital notes of QR 1,082,455 (USD 300 million). The notes were issued through QIC (Cayman) Limited, wholly owned subsidiary incorporated in the Cayman Islands, for the purpose of the issuance. These notes are perpetual in nature and qualify as Tier 2 Capital under Qatar Central Bank regulations for the solvency ratio calculations. 16 COMMITMENTS AND CONTINGENT LIABILITIES

31 March 31 December 2021 2020 QR (‘000) QR (‘000) (Reviewed) (Audited)

Bank guarantees 3,822,727 3,846,199 Authorised future investment commitments 358,403 358,403 4,181,130 4,204,602

17 FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS The following table shows an analysis of financial instruments recorded at fair value by level of the fair value hierarchy. The different levels have been defined as follows:

Level 1 Level 2 Level 3 Total 31 March 2021 (reviewed) (QR ‘000) (QR ‘000) (QR ‘000) (QR ‘000) Derivative assets held for risk management - 45,909 - 45,909 Investment securities 13,828,880 950,780 1,976,210 16,755,870

13,828,880 996,689 1,976,210 16,801,779

Level 1 Level 2 Level 3 Total

31 December 2020 (audited) (QR ‘000) (QR ‘000) (QR ‘000) (QR ‘000) Derivative assets held for risk management - 57,748 - 57,748 Investment securities 13,651,199 947,082 1,901,895 16,500,176

13,651,199 1,004,830 1,901,895 16,557,924

There were no transfers from Level 1 or Level 2 during the period. The Level 3 balance increased due to additions of QR 36,109 thousand and increase in fair value movement of QR 38,206 thousand during the period.


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18 DISCONTINUED OPERATIONS On 22 November 2020, by virtue of an resolution on extraordinary general assembly, the shareholders of QLM Life & Medical Insurance Company (QLM), a subsidiary of the Group, resolved to convert the subsidiary to a public shareholding Company (Q.P.S.C) and subsequently list on the Qatar Stock Exchange through an Initial Public Offering (“IPO”) of 60% of the shares held by the Group to the public. The IPO process was successfully completed on 30 December 2020 and Consequently, the interest held by the Group has been reduced to 25% of paid-up share capital of QLM Life & Medical Insurance Company Q.P.S.C. At 31 December 2020, QLM Life & Medical Insurance Company Q.P.S.C. was reported as a discontinued operation. Financial information relating to the discontinued operation for the three months period ended 31 March 2020 is set out below. For further information about the discontinued operation please refer to the note 41 in the Group’s annual consolidated financial statements for the year ended 31 December 2020.

For the three months period ended

31 March 31 March

2021 2020

(QR ‘000) (QR ‘000)

(Reviewed) (Unreviewed)

Gross premiums

- 396,151

Net underwriting results - 21,152

Profit for the period from discontinued operations - 10,275

Other comprehensive income - (36,794) The net cash flows incurred by QLM Life & Medical Insurance Company Q.P.S.C. for the three months period ended 31 March 2020 are, as follows; 2021 2020 QR (‘000) QR (‘000) Operating - 27,756 Investing - (35,172) Financing - 4,109 Net increase in cash generated - (3,307)

The carrying amounts of assets and liabilities of QLM Life & Medical Insurance Company Q.P.S.C as at the date of loss of control were as follows:

2020

QR (‘000) Total Assets

1,741,709 Total Liabilities

(1,218,678) Value of the net assets as of the date of loss of control 523,031


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19 COMPARATIVE AMOUNTS Certain comparative figures of the previous year have been reclassified to conform to the current year’s presentation. However, such reclassifications are not material and do not have an impact on the previously reported profit or net assets. The effects of the above restatements and reclassification to Qatar Insurance Company Q.S.P.C condensed consolidated financial statements are shown below:

(Previously reported)

Adjustments

(Reclassified)

2020 2020 2020 QR 000 QR 000 QR 000 Consolidated financial position Insurance and other receivables 8,847,180 157,220 9,004,400 Provisions, reinsurance and other payables (4,216,802) (157,220) (4,374,022)

20 IMPACT OF COVID-19 The ongoing COVID-19 pandemic has had a significant impact on the global economy and the ability of individuals, businesses, and governments to operate. Across the globe, travel, trade, business, working arrangements and consumption have been materially impacted by the pandemic. The Group is closely monitoring the situation and has activated its business continuity planning and other risk management practices to manage the potential business disruption COVID-19 outbreak may have on its operations and financial performance. The Group’s capital, liquidity and funding positions remain robust and the Group remains operationally strong in the face of unprecedented global uncertainty presented by the COVID-19 pandemic. The Group expects this uncertainty and consequent capital contraction to influence rates across the sectors.

Documents

QIC FS 31 March 2021 - Final