NOTES TO FINANCIAL STATEMENT

Capital and reserves

Share capital

	2022	2021
	AED	AED
Authorised, issue and fully paid:
118,780,500 shares of AED 1 each	118,780,500	118,780,500

Tier 1 capital

On 14 January 2019, the Company’s Board of Directors approved the issuance of Tier 1 perpetual bonds non-convertible into shares amounting to AED 15,000,000 for the purpose of strengthening the Company’s capital adequacy and assets and to support its financial position to achieve the Company’s growth strategy and to be compatible with the instructions of the Insurance Authority.

Legal reserve

In accordance with the UAE Federal Law No. 32 of 2021, concerning Commercial Companies and the Company’s Articles of Association, 10% of profit is to be transferred to non-distributable legal reserve until the balance of the legal reserve equals 50% of the Company’s paid up share capital. This reserve is not available for dividend distribution.

 

Reinsurance reserve

In accordance with Insurance Authority’s Board of Directors’ Decision No. 23, Article 34, an amount of AED 650,848 was transferred from retained earnings to reinsurance reserve. The reserve is not available for distribution, and will not be disposed of without prior approval from Insurance Authority.

Dividend declaration

On April 12, 2021, the Board of Directors declared dividends to shareholders at a rate of 4% of the share capital.

Treasury Shares

 

During the year, the Company has reacquired back some its outstanding shares with AED 4,660,318