NOTES TO FINANCIAL STATEMENT
Segment information
The Company has two reportable segments, as described below, which are the Company’s strategic business units. The business units are managed separately because they require different approach technology and marketing strategies. For each of the strategic business units, the Chief Operating Decision Maker reviews internal management reports on at least a quarterly basis.
The following summary describes the two main business segments:
- Underwriting of general insurance business – incorporating all classes of general insurance such as fire, marine, motor, medical, general accident and miscellaneous.
- Investments – incorporating investments in marketable equity securities and investment funds, development bonds, term deposits with banks and other securities.
Primary segment information – business segment
| 31 December 2020 | 31 December 2019 | |||||
| AED | AED | |||||
Underwriting |
Investments |
Total |
Underwriting |
Investments |
Total |
|
| Segment revenue |
217,371,704 |
6,814,389 |
224,186,093 |
235,821,191 |
6,885,438 |
242,706,629 |
| Segment result | 47,004,762 | 6,814,389 | 53,819,151 | 51,574,027 | 6,885,438 | 58,459,465 |
| Unallocated income/expense, net |
(42,933,272) |
(42,293,291) |
||||
| Net profit for the year |
10,885,879 |
16,166,174 |
||||
- The following is an analysis of the Company’s assets, liabilities and equity by business segment:
| 31 December 2020 | 31 December 2019 | ||||||
| AED | AED | ||||||
Underwriting |
Investments |
Total |
Underwriting |
Investments |
Total |
||
| Segment assets |
176,992,785 |
110,233,735 |
287,226,520 |
175,439,378 |
104,723,645 |
280,163,023 | |
| Unallocated assets |
48,626,824 |
54,190,762 |
|||||
| Total assets |
335,853,344 |
334,353,785 |
|||||
| Segment liabilities and equity |
332,579,541 |
20,861 |
332,600,402 |
330,710,588 |
865,535 |
331,576,123 | |
| Unallocated liabilities and equity |
3,252,942 |
2,777,662 |
|||||
| Total liabilities and equity |
335,853,344 |
334,353,785 |
|||||
(b) Secondary segment information – revenue from underwriting departments
The following is an analysis of the Company’s gross written premiums classified by major underwriting department.
| 2020 | 2019 | |
| AED | AED | |
| Motor | 85,767,211 | 104,302,605 |
| Medical | 97,478,737 | 94,296,509 |
| Commercial |
34,125,756 |
37,222,077 |
217,371,704 |
235,821,191 |
There were no transactions between the business segments during the year.
b) Secondary segment information – revenue from underwriting departments
The following is an analysis of the Company’s revenues (gross written premiums and commission income) classified by major underwriting department.
| 2019 | 2018 | |
| AED | AED | |
| Non – Marine | 139,092,569 | 136,795,846 |
| Medical and personal assurance | 94,296,509 | 73,324,818 |
| Marine | 2,432,113 | 760,866 |
|
|
235,821,191 |
210,881,530 |
There were no transactions between the business segments during the year.
