7.The decrease in net loss compared to the same quarter of the previous year is due to decrease in deficit from insurance operation from 9,755 thousand riyals to 2,720 thousand riyals which is due to lower incurred claims and increase in investment income. The results of the Company have also improved compared to previous quarter as the previous quarter was impacted by large losses in fire and property segments.
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 material 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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