Insurance House P.J.S.C.

Condensed Interim Financial Statements

(Un-audited)

For the six months period ended 30 June 2023

Ref: CMAUH-2023-14

Report on review of condensed interim financial statements

To the Shareholders of Insurance House P.J S C

Introduction

We have reviewed the accompanying condensed interim financial statements of Insurance House P.J.S.C. (the “Company”), which comprise the condensed interim statement of financial position as at 30 June 2023 and the related condensed interim statement of profit or loss, the condensed interim statement of comprehensive income, the condensed interim statement of changes in equity and the condensed interim statement of cash flows for the six months period then ended and other related explanatory notes. Management is responsible for the preparation and fair presentation of these condensed interim financial statements in accordance with International Accounting Standard 34 (“IAS 34”) “Interim Financial Reporting”. Our responsibility is to express a conclusion on the condensed interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

During the current period, the management identified material errors in the process of recording of transactions covering a) reinsurance share of premium; b) reinsurance share of loss adjustment; and c) commission income, related to reinsurance of medical and personal assurance for prior years Management is in the process of reconciling balances with the Reinsurers and brokers and has provisionally accounted for estimated losses aggregating to AED 69,343,226 with corresponding reversal of due from Reinsurers and Brokers on retrospective basis (Refer Note 22) Considering ongoing reconciliation as at date of this report, we are unable to assess whether any further adjustments might be required to these condensed interim financial statements.

Qualified Conclusion

Based on our review, with the exception of the matter described in the preceding paragraph, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements is not prepared, in all material respects, in accordance with IAS 34.

Emphasis of Matter

As stated in Note 1.1, the Company has accumulated losses amounting to AED 105,435,856 as at 30 June 2023, (December 31, 2022: AED 77,941,647) which resulted in the erosion of equity in excess of 50%. This has led to non-compliance by the Company with the solvency ratio as required by financial regulations for insurance companies and Central Bank of the UAE.

Other Matter

The condensed interim financial statements of the Company for the six-month period ended 30 June 2022 were reviewed by another auditor, who expressed an unmodified review conclusion dated 9 August 2022.

The financial statements of the Company for the year ended 31 December 2022 were audited by another auditor, who expressed an unmodified opinion on those statements on 13 February 2023.

For, Crowe Mak

Umesh Narayanappa

Partner

Registration number 1234

Abu Dhabi, United Arab Emirates

11 August 2023