OPERATING PERFORMANCE

STATEMENT OF CASH FLOWS

For the year ended 31 December	Notes	2022 SR	2021 SR
Operating activities
Total income for the year before Zakat and tax		62,103,602	55,886,161
Adjustments to reconcile total income for the year before Zakat and tax to net cash used in operating activities:
Employees’ end of service benefits expenses	19	1,561,131	1,341,020
Special commission income from bond and sukuk		(19,332,886)	(10,134,671)
Special commission expense from margin loan payable		1,207,363	432,140
Special commission income from time deposits		(16,722,235)	(5,312,286)
Amortization of discount and premium on held to maturity investments, net	18	(2,672,417)	(3,413,054)
Depreciation of property and equipment	25	2,822,173	2,612,955
Gain on disposal of property and equipment		–	(41,454)
Realized gains on investments held at fair value through income statement	7(iii)	(6,529,722)	(7,209,116)
Unrealized losses/(gains) on investments held at fair value through income statement	7(iii)	33,979,564	(4,912,672)
Share of profit of equity accounted investee	17	(19,798,957)	(18,657,921)
Charge for doubtful debts	6	680,201	153,851
Operating income before changes in operating assets and liabilities		37,297,817	10,744,953
Changes in operating assets and liabilities:
Reinsurance premiums receivable, net		(79,424,793)	51,371,704
Accrued reinsurance premiums		(396,996,701)	(86,206,823)
Retroceded share of unearned premiums		(381,140,039)	3,909,265
Unearned premiums		351,848,182	100,328,307
Retroceded share of outstanding claims		(18,367,923)	5,341,430
Retroceded share of claims incurred but not reported		6,402,344	7,763,206
Deferred acquisition costs		(62,831,952)	(19,194,868)
Deferred excess of loss premiums		(3,360,606)	734,131
Prepaid expenses, deposits and other assets		(73,813,418)	214,494,540
Accounts payable		26,440,871	12,067,123
Retrocession balances receivable		(10,667,031)	16,445,367
Retrocession balances payable		87,602,112	(28,448,079)
Accrued retroceded premiums		297,761,738	(4,320,405)
Outstanding claims		39,414,092	66,043,865
Claims incurred but not reported		105,724,250	76,654,955
Unearned commission income		87,411,449	1,344,444
Statutory deposit		–	(8,100,000)
Accrued expenses and other liabilities		75,235,801	6,036,462
Cash generated from operating activities		88,536,193	427,009,577
Zakat and tax paid	22	(12,998,578)	(14,913,138)
Employees’ end of service benefits paid	19	(443,884)	(419,904)
Net cash generated from operating activities		75,093,731	411,676,535
Investing activities
Addition in time deposits		(534,383,617)	(308,318,750)
Proceeds from maturity of time deposits		30,810,000	258,396,167
Special commission income received on time deposits		11,357,650	6,213,677
Special commission income received from bonds and sukuk		20,967,464	9,504,843
Special commission income received on statutory deposit	29	1,134,784	–
Purchase of property and equipment, net		(2,045,907)	(6,143,496)
Proceeds from sale of property and equipment		–	41,500
Additions in investments held at fair value through income statement	7(iii)	(215,791,396)	(843,620,691)
Proceeds from disposal of investments held at fair value through income statement	7(iii)	704,771,857	564,239,261
Additions in held to maturity investments	18	(110,957,793)	(110,586,537)
Proceeds from maturity of held-to-maturity investments	18	24,000,000	–
Net cash used in investing activities		(70,136,958)	(430,274,026)
Financing activities
Proceeds from margin loans	10	–	33,680,203
Special commission expense paid against margin loan		(1,207,363)	(432,140)
Net cash (used in)/generated from financing activities		(1,207,363)	33,248,063
Increase in cash and cash equivalents		3,749,410	14,650,572
Cash and cash equivalents at the beginning of the year		27,807,294	13,156,722
Cash and cash equivalents at the end of the year	5	31,556,704	27,807,294
Non-cash information
Remeasurement loss on end-of-service benefit obligations	19	(462,092)	(694,084)
Foreign currency impact on equity accounted investment	17	(8,258,424)	(1,429,969)
Depreciation on right of use assets		220,134	50,082
Interest expense on lease liability		14,473	4,618

Managing Director/Chief Executive Officer

Chairman of the Board

Chief Financial Officer