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

The Increase in loss before zakat for the quarter of SR 190K, an increase of loss 3.22% compared with same quarter of the previous year was due to the following main reasons:

• Deccrease in insurance service result of SR 12,132K compared with the same quarter of the previous year, deccrease of 277.56%. This was driven by an decrease in insurance revenue of SR 3,274K, an increase of 4.10%, and increase in insurance service expense of SR 10,092K, an increase of 14.65%, and despite decrease in net expenses from reinsurance contracts held of SR 1,234K, decrease of 18.68%.

• Increase in net investment income of SR 11,595K compared with the same quarter of the previous year, an increase of 175.44%.

These favorable movements were partially offset by the following:

• decrease in operating expenses of SR 2,713K compared with the same quarter of the previous year, deccrease of 76.92%.

Gross Written Premiums (GWP) decreased by SR 42,601K compared with the same quarter of the previous year, an decrease of 50.98%.

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

•The increase in loss before zakat for the quarter of SR (11,063) K, decrease of 222.46% compared with previous quarter was due to the following main reasons:

• Decrease in insurance service result of SR 14,110K compared with the previous quarter, decrease of 222.24%. This was driven by a decrease in insurance revenue of SR 12,063K, decrease of 13.60% and an increase of insurance service expense of SR 8,302K, an increase of 11.74%, despite decrease in reinsurance expenses of 6,255, decrease of 53.79%

• Increase in net investment income of SR 1,189K compared with the previous quarter, an increase of 31.31%.

• decrease in net other operating expenses of SR 2,988K compared with the previous quarter, an increase of 78.59%.

Moreover, Gross Written Premiums (GWP) decreased by SR 58,400K compared with the previous quarter, a decrease of 142.56%.

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

The decrease in loss before zakat for the period of SR 22,987K, a decrease of 95.37% compared with same period of previous year was due to the following main reasons:

• decrease in negative insurance service result of SR 10,896K compared with the same period of previous year, a decrease of 88.53%.

This was driven by an increase in insurance revenue of SR 16,704K, an increase of 11.24% and a decrease in net expenses from reinsurance contracts held of SR 2,126K, a decrease of 11.12%.

• increase in net investment income of SR 11,688K compared with loss of previous period, an increase of 402.34%

Moreover, Gross Written Premiums (GWP) decreased by SR 91,153K compared with the previous period, a decrease of 39.38%.

net loss of SR 2.9 million during the six-months period ended 30 June 2023 and, as of that date, the Company’s

accumulated losses amounted to SR 248.5 million which represents 49.7% of the share capital. These conditions

along with other matters as set forth in note 2(b), indicate that a material uncertainty exists that may cast significant

doubt on the Company’s ability to continue as a going concern. Our conclusion is not modified in respect of this

matter.

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 loss per share (EPS) for the current quarter is SR (0.14) per share versus SR (0.14) per share for the same quarter of the previous year which is calculated by dividing the net Loss amount of (6,990) K over the number of ordinary outstanding shares of 50,000 K .

Total comprehensive loss for the current quarter is SR (6,990) K compared to SR (7,131) K for the same quarter of the previous year, an increase of 1.99%.

Total Shareholders’ Equity (no minority interest) as at end of current period is SR 293 million versus SR 373 million as at end of the same period in the previous year, an decrease of 21.44%.