Gulf Insurance Group announces its Interim Financial Results for the Period Ending on 2023-09-30 ( Nine Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Gross Written Premiums (GWP)	389,950	380,499	2.48	318,484	22.44
Net Written Premiums (NWP)	-	-	-	-	-
Net Incurred Claims	-	-	-	-	-
Net Profit (Loss) of Policy Holders Investment	-	-	-	-	-
Surplus (deficit) of insurance operations minus the revenues of policy holders' investments (operational procedures results)	-	-	-	-	-
Net Profit (loss) of Shareholders Capital Investment	-	-	-	-	-
Net Profit (Loss) before Zakat	16,802	-3,474	-	43,630	-61.49
Total Comprehensive Income	-2,636	-35,578	-92.59	10,307	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Gross Written Premiums (GWP)	1,252,817	1,245,991	0.55
Net Written Premiums (NWP)	-	-	-
Net Incurred Claims	-	-	-
Net Profit (Loss) of Policy Holders Investment	-	-	-
Surplus (deficit) of insurance operations minus the revenues of policy holders' investments (operational procedures results)	-	-	-
Net Profit (loss) of Shareholders Capital Investment	-	-	-
Net Profit (Loss) before Zakat	129,365	164,913	-21.55
Total Comprehensive Income	97,483	55,114	76.88
Total Share Holders Equity (after Deducting Minority Equity)	1,012,242	1,052,095	-3.79
Profit (Loss) per Share	2.13	2.89
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	Refer to the attachment for further details on the financial results items that are relevant under the newly implemented financial reporting standards for insurance companies.

The Company has adopted IFRS 17 (Insurance Contracts) and IFRS 9 (Financial Instruments), as endorsed in Saudi Arabia, starting 1 January 2023, with retrospective application, which has materially changed the presentation of the financial results for periods starting Q1 2023 onwards with the comparative periods restated under the new standards. As a result, the Company has only reflected the relevant financial information under the new standards in the above announcement. Items that are reported as "0" are no longer presented in the new financial statements under IFRS 17 and IFRS 9.

The following explanation will cover the relevant financial information reflected in the announcement above along with explanation on the new presentation of the financial results which are attached to this announcement:

The increase in net profit before zakat and income tax for the quarter by SR 20M compared with same quarter of the previous year was due to the following main reasons:

(i) Increase in insurance revenue by SR 13M, compared with the same quarter of the previous year mainly contributed by property and casualty segment

(ii) Increase in investment income by SR 6.5M compared with the same quarter of the previous yearThe reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is Refer to the attachment for further details on the financial results items that are relevant under the newly implemented financial reporting standards for insurance companies.

The decrease in net profit before zakat and income tax for the quarter by SR 27M compared with previous quarter was due to the following main reasons:

- Increase in reinsurance expense by SR 544M compared with the previous quarter mainly due to reduction in reinsurance recoveries related to property and casualty segment

Above unfavorable impacts were partially offset by the following favorable movements:

(i) Reduction in insurance service expenses by SR 518M compared with the previous quarter mainly driven by decrease in incurred claims related to property and casualty segment

(ii) Increase in other income by SR 10M compared with the previous quarterThe reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is Refer to the attachment for further details on the financial results items that are relevant under the newly implemented financial reporting standards for insurance companies.

The decrease in net profit before zakat and income tax for the current period by SR 35M compared with previous same period of last year was due to the following main reasons:

- Increase in net insurance service expenses by SR 591M compared with same period of last year, was driven mainly by increase in incurred claims by SR 459 M mainly due to incurred claims related property and casualty segment.

Above unfavorable impacts were partially offset by the following favorable movements in the current period as compared to same period las year:

(i) Increase in net reinsurance recoveries by SR 478M mainly due to increase in incurred reinsurance recoveries related to property and casualty segment.

(i) Increase in insurance revenue by SR 83M mainly driven by Motor and P&C segment

(ii) Increase in investment income by SR 21MStatement of the type of external auditor's report Unmodified ConclusionModification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion NoneReclassification of Comparison Items The Company has reclassified and restated comparative information to meet the requirements of the newly implemented standards IFRS 17 and IFRS 9.Additional Information The Company has adopted IFRS 17 (Insurance Contracts) and IFRS 9 (Financial Instruments), as endorsed in Saudi Arabia, starting 1 January 2023, with retrospective application, which has materially changed the presentation of the financial results for periods starting Q1 2023 onwards with the comparative periods restated under the new standards. As a result, the Company has only reflected the relevant financial information under the new standards in the above announcement. Items that are reported as "0" are no longer presented in the new financial statements under IFRS 17 and IFRS 9.

Refer to the attachment for further details on the financial results items that are relevant under the newly implemented financial reporting standards for insurance companies.

The earnings per share (EPS) for the current period is SR 2.13 per share versus SR 2.89 per share for the same period of the previous year which is calculated by dividing the net income amount of SR 106,575 thousand over the weighted average number of ordinary outstanding shares of 50,000 thousand for the current period and SR 144,395 thousand over 50,000 thousand for the same period of the previous year.

Total comprehensive income for the current period is SR 97,483 thousand compared to total comprehensive income of SR 55,114 thousand for the same period of the previous year, an increase of 76.88%.

Total Shareholder Equity as at the end of the current period is SR 1,012,242 thousand versus SR 1,052,095 thousand as at the end of the same period in the previous year, a decrease of 3.8%Attached Documents

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.