NOTES TO FINANCIAL STATEMENT

Changes in reinsurance agreements

The Company had entered into a Reinsurance agreement (for the year 2022) with one of the reinsurers for motor quota share proportional reinsurance agreements, where in term for cessation was 60% with 40% retention. However, Company finalized the terms of the agreement in June 2023 with 70% cessation and 30% retention. Modification in terms of the agreement resulted in reversal of premium, commission, and claims. Accordingly, incurred claims and other expenses for the year ended 31 December 2023 is net of AED 9,306,539.