SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Premium Deficiency Reserve adjustments

The adjustment mainly refers to Premium Deficiency Reserve (PDR) due to certain changes in the methodology adopted by the Management based on actuarial recommendation. Accordingly, the Management had accounted the impact amounting to AED 9,615,607 (AED 6,968,874 in quarter ended 31 March 2023 and AED 2,646,733 in quarter ended 30 June 2023) prospectively under IFRS 4. However, on adoption of IFRS 17 during the current period, these costs have been retrospectively applied in the last quarter of 2022 and reversed the provision recorded in the books, which is maintained under IFRS 4, in the current year.