Consolidated Statement of Cash Flows
For the year ended 31 December 2025
| 2025 | 2024 | ||
|---|---|---|---|
| Note | KD 000’s | KD 000’s | |
| OPERATING ACTIVITIES | |||
| Profit for the year before contribution of KFAS and taxation | 43,888 | 40,451 | |
| Adjustments for: | |||
| Net investment income | (16,999) | (13,577) | |
| Interest income | (40,096) | (39,438) | |
| Share of results of investment in associates | 10 | (2,879) | (3,737) |
| Impairment of investment in associates | 10 | 298 | 400 |
| Gain on sale of investment in associates | 10 | (377) | (299) |
| Gain on sale of property and equipment | (25) | ‑ | |
| Depreciation of property and equipment and right of use assets | 4,180 | 4,321 | |
| Amortization of intangible assets | 13 | 8,120 | 7,374 |
| Provision charged for end of service benefits | 17 | 3,815 | 4,011 |
| Monetary loss from hyperinflation | 2,110 | 4,028 | |
| Finance costs | 4,845 | 6,496 | |
| Impairment of intangible assets | 13 | 130 | ‑ |
| 7,010 | 10,030 | ||
| Changes in operating assets and liabilities: | |||
| Insurance contract assets | (22,589) | (21,662) | |
| Reinsurance contract assets | 4,462 | (22,140) | |
| Other assets | (572) | 584 | |
| Insurance contract liabilities | 66,801 | 56,657 | |
| Reinsurance contract liabilities | 12,914 | (13,592) | |
| Other liabilities | (44,725) | 17,390 | |
| Remuneration paid to directors | (185) | (185) | |
| Provision for end of service benefits paid | 17 | (1,202) | (3,761) |
| Income taxes paid | (7,191) | (7,978) | |
| Net cash flows generated from operating activities | 14,723 | 15,343 | |
| INVESTING ACTIVITIES | |||
| Movement in time deposits | (4,253) | 26,810 | |
| Net purchases of investments at fair value through profit or loss | (44,695) | (13,692) | |
| Net purchases of investments at fair value through other comprehensive income | (8,622) | (37,540) | |
| Net movement of debt instruments at amortized cost | (6,902) | 3,887 | |
| Net movement of loans secured by life insurance policies | 62 | 481 | |
| Purchase of property and equipment | 12 | (2,433) | (2,451) |
| Additions of investment properties | 11 | ‑ | (106) |
| Additions on intangible assets | 13 | (3,838) | (2,698) |
| Proceeds from sale of property and equipment | 108 | 27 | |
| Proceeds from sale of investments properties | ‑ | 1,141 | |
| Interest income received | 40,096 | 39,065 | |
| Dividend income received | 4,140 | 3,094 | |
| Dividend received from investment in associates | 10 | 2,746 | 2,736 |
| Rental income received | 502 | 400 | |
| Net proceeds from sale of investment in associates | 10 | 5,977 | 10,405 |
| Participation in issuance of share capital of an investment in associate | (74) | ‑ | |
| Net cash flows (used in) generated from investing activities | (17,186) | 31,559 | |
| FINANCING ACTIVITIES | |||
| Payment of lease liabilities | (1,661) | (2,222) | |
| Term loans repaid | (80,274) | (2,250) | |
| Term loans received | 96,028 | ‑ | |
| Finance costs paid | (4,543) | (6,190) | |
| Proceeds from sale of treasury shares | ‑ | 1,598 | |
| Acquisition of non‑controlling interest | (384) | (205) | |
| Interest paid on subordinated perpetual Tier 2 bonds | (2,582) | (2,582) | |
| Dividends paid | 18 | (6,530) | (10,529) |
| Dividends paid to non‑controlling interests | (4,338) | (4,766) | |
| Net cash flows used in financing activities | (4,284) | (27,146) | |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (6,747) | 19,756 | |
| Cash and cash equivalents at beginning of the year | 160,847 | 153,323 | |
| Foreign currency translation adjustments | (3,601) | (12,232) | |
| CASH AND CASH EQUIVALENTS AT END OF THE YEAR | 5 | 150,499 | 160,847 |
The attached notes 1 to 29 form part of this consolidated financial statements.