The following explanation covers the relevant financial information reflected in the announcement above along with explanation on the new presentation of the financial results which are attached to this announcement:

'- Improvement in insurance service result of SR 203.4m compared with the same period of the previous year, an increase of 112.7%. This was driven by an increase in insurance revenue of SR 476.78m, an increase of 40.2%, accompanied by a smaller increase in the insurance service expense of only 8.48% or SR 118.7m, compared with the same period of the previous year. An overall improvement in the underwriting performance has been observed in Q2 2023.

'- increase in net investment income of SAR 25.7m compared with the equivalent period of the previous year, representing an increase of 63.5%.

Moreover, Gross Written Premiums (GWP), which is not separately disclosed under IFRS 17, increased by SR 399.3m compared with the same period of the previous year, an increase of 24.6%.

Based on the above, the Company's management has assessed its ability to continue as a going concern and is satisfied that the Company's operations shall continue for the foreseeable future under the normal course of business. Accordingly, the financial statements have been prepared on the going concern basis and do not include any adjustments, which may be required, if the Company is not able to continue as a going concern.

The auditors' conclusion is not modified in respect of this matter.

The Financial Statements have been prepared in accordance with International Accounting Standard 34 endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (“SOCPA”), consistent with the Company’s accounting policies. Comparatives have been restated.

The earnings / (loss) per share (EPS) for the current period is SAR 0.96 per share versus SAR (0.78) per share for the equivalent period last year.

The Company's accumulated losses as of 30 June 2023 are 34.1%, an improvement of 9.6pp over what it was at (31 December 2022 - restated: 43.7%) of its subscribed capital and as of the same date the Company's solvency coverage is below the prudential solvency requirements. The solvency coverage improved by more than 45pp compared to 31 December 2022 (now exceeding 57%) and there is a plan for full restoration approved by the Company's Board of Directors.

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.