Independent Auditor’s Report

To the Shareholders of Insurance House P.J.S.C. (continued)

Report on the Financial Statements (continued)

Key Audit Matters (continued)

i) Valuation of technical reserves (continued)

We assessed management’s calculations of the technical reserves by performing the following procedures:

• Understood the governance process in place to determine the insurance contract liabilities;

• Tested the underlying Company data to source documentation on sample basis;

• Evaluated competence, capabilities and objectivity of management’s actuarial specialist;

• Using our actuarial specialist team members, we applied our industry knowledge and experience, and compared the methodology, models and assumptions used against recognised actuarial practices; and

• Using our actuarial specialist team members, we checked the mathematical accuracy of the methodology applied on selected classes of business, particularly focusing on the largest and most uncertain reserves.

ii) Revenue recognition

Gross premiums comprise the total premium receivable for the whole period of cover by contracts entered into during the accounting period, and are recognised on the date on which the policy commences. At the end of each year, a proportion of net retained premiums is provided for as an unearned premium reserve to cover portions of risk that have not expired at the reporting date. The reserve is required to be calculated in accordance with the requirements of the UAE Insurance Law relating to insurance companies.

We assessed management’s calculation of gross premiums amounting to AED 281,251,947 and net unearned premium reserve amounting to AED 53,752,818 (Note 13) by performing audit procedures, which included among others:

• We assessed whether the Company’s revenue recognition policies complied with IFRS and tested the implementation of those policies. Specifically, we considered whether the premium on policies are accounted for on the date of inception of policies, by testing a sample of revenue items to policy contracts.

• We evaluated and tested the operating effectiveness of the internal controls over the recording of revenue in the correct period.

• We compared the unearned premium reserve balance as per the financial statements to the reserve balance computed by the Company’s actuary.

• We recalculated the unearned premium reserve based on the earning period of policy contracts existing as of 31 December 2022.

• We tested written policies on a sample basis where revenue was recorded close to year end and subsequent to year end, and evaluated whether these were recorded in the appropriate accounting period.