OPERATING PERFORMANCE
Statement of Cash Flows
| For the year ended 31 December | Notes | 2021 SR |
2020
SR
|
||
 Operating activities
|
|||||
| Total income for the year before Zakat and tax | 55,886,161 | 64,123,853 | |||
|
Adjustments to reconcile total income for the year before Zakat and tax to net cash used in operating activities: |
|||||
| Employees’ end of service benefits | 19 | 1,341,020 | 1,123,174 | ||
| Special commission income from bond and sukuk | (10,134,671) | (8,294,417) | |||
| Special commission expense from margin loan | 432,140 | 9,969 | |||
| Special commission income from time deposits | (5,312,286) | (10,729,027) | |||
| Amortization of discount and premium on held-to-maturity investments | 18 | (3,413,054) | (2,952,591) | ||
| Depreciation of property and equipment | 25 | 2,612,955 | 2,341,856 | ||
| Gain on disposal of property and equipment | (41,454) | – | |||
| Reversal of provision for Zakat | – | (5,567,920) | |||
| Realized (gains)/losses on investments held at fair value through income statement | 7(iii) | (7,209,116) | 885,373 | ||
| Unrealized gains on investments held at fair value through income statement | 7(iii) | (4,912,672) | (1,685,649) | ||
| Share of profit of equity-accounted investee | 17 | (18,657,921) | (12,071,843) | ||
| Charge/(reversal) of doubtful debts | 6 | 153,851 | (647,860) | ||
| Operating income before changes in operating assets and liabilities | 10,744,953 | 26,534,918 | |||
|
Changes in operating assets and liabilities:
|
|||||
| Reinsurance premiums receivable, gross | 51,371,704 | (59,714,912) | |||
| Accrued reinsurance premiums | (86,206,823) | (127,192,211) | |||
| Retroceded share of unearned premiums | 3,909,265 | (21,024,988) | |||
| Unearned premiums | 100,328,307 | 146,543,590 | |||
| Retroceded share of outstanding claims | 5,341,430 | 128,044,463 | |||
| Retroceded share of claims incurred but not reported | 7,763,206 | (10,984,218) | |||
| Deferred acquisition costs | (19,194,868) | (43,124,178) | |||
| Deferred excess of loss premiums | 734,131 | (1,040,130) | |||
| Prepaid expenses, deposits and other assets | 42,518,082 | (44,458,986) | |||
| Accounts payable | 12,067,123 | (7,953,857) | |||
| Retrocession balances receivable | 16,445,367 | (13,600,729) | |||
| Retrocession balances payable | (28,448,079) | 15,138,226 | |||
| Accrued retroceded premiums | (4,320,405) | 18,070,553 | |||
| Outstanding claims | 66,043,865 | (20,282,406) | |||
| Claims incurred but not reported | 76,654,955 | (4,513,165) | |||
| Unearned commission income | 1,344,444 | 7,409,113 | |||
| Statutory deposit | (8,100,000) | 40,500,000 | |||
| Accrued expenses and other liabilities | 6,036,462 | 4,439,976 | |||
| 255,033,119 | 32,791,059 | ||||
| Zakat and tax paid | 22 | (14,913,138) | (17,774,142) | ||
| Employees’ end of service benefits paid | 19 | (419,904) | (14,670) | ||
| Net cash generated from operating activities | 239,700,077 | 15,002,247 | |||
|
Investing activities
|
|||||
| Addition in time deposits | (308,318,750) | (233,237,045) | |||
| Proceeds from maturity of time deposits | 258,396,167 | 383,143,846 | |||
| Accrued special commission income on time deposits | 6,213,677 | 15,491,938 | |||
| Accrued special commission income from bonds and sukuk | 9,504,843 | 4,906,926 | |||
| Purchase of property and equipment, net | (6,143,496) | (2,391,660) | |||
| Proceeds from sale of property and equipment | 41,500 | – | |||
| Additions in investments held at fair value through income statement | 7(iii) | (671,644,233) | (500,020,456) | ||
| Proceeds from disposal of investments held at fair value through income statement | 7(iii) | 564,239,261 | 406,587,175 | ||
| Additions in equity-accounted investment | 17 | – | (3,696,900) | ||
| Additions in held-to-maturity investments | (110,586,537) | (143,570,130) | |||
| Net cash used in investing activities | (258,297,568) | (72,786,306) | |||
|
Financing activities
|
|||||
| Proceeds from margin loans | 10 | 33,680,203 | 23,116,816 | ||
| Special commission expense paid against margin loans | (432,140) | (9,969) | |||
| Net cash generated from financing activities | 33,248,063 | 23,106,847 | |||
| Increase/(decrease) in cash and cash equivalents | 14,650,572 | (34,677,212) | |||
| Cash and cash equivalents at the beginning of the year | 13,156,722 | 47,833,934 | |||
| Cash and cash equivalents at the end of the year | 5 | 27,807,294 | 13,156,722 | ||
|
Non-cash information
|
|||||
| Remeasurement gain/(loss) on end-of-service benefit obligations | 19 | (694,084) | (735,982) | ||
| Foreign currency impact on equity-accounted investment | 17 | (1,429,969) | 2,926,703 | ||
| Right-of-use asset | 50,082 | 288,916 | |||
| Lease liability | 4,618 | 295,834 |
The accompanying notes 1 to 36 form an integral part of these financial statements.