Logo of Gulf Union AlAhlia Cooperative Insurance Co.
Gulf Union AlAhlia Cooperative Insurance Co. reported a positive impact of 22.58% on net assets, due to an increase in the value of its investment in Najm for Insurance Services Co.
In a statement to Tadawul, the company said it owns 6.9% of Najm, which was historically carried at cost of SAR 3.85 million.
Gulf Union AlAhlia will now recognize this at fair value of SAR 79.41 million for the year ended on Dec. 31, 2022.
It will recognize this rise in net asset value along with an equivalent increase in equity.
The insurance services provider opted to reclassify this investment as financial assets at fair value through profit or loss after the adoption of IFRS 9.
The insurance services provider will recognize this increase in the net asset value of investments through other comprehensive income. The impact of this will be reflected on the condensed financial statements for Q1 2023, the company concluded.
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