Al-Etihad reports equity investment gains in Najm

Logo og Al-Etihad Cooperative Insurance Co.

Al-Etihad Cooperative Insurance Co. (Al-Etihad) announced equity investment gains in Najm for Insurance Services Co. (Najm), which resulted in a material positive impact on company’s net assets, according to a statement to Tadawul.

Al-Etihad said it owned 3.45% of Najm shares, which has been so far measured at cost amounting to SAR 1.9 million. However, Al-Etihad will now recognize this equity at fair value at SAR 39.7 million for the year ended Dec. 31, 2022.

This recognition is based on Najm independent valuation, under IFRS 9 Financial Instruments, as of Jan. 1, 2023.

Al-Etihad also indicated that it would recognize this equity investment gains at fair value through other comprehensive income (FVTOCI), which will appear on Q1 2023.