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Investor Presentaiton

29 2021 Financials "Note # 3" Overview إعادة Saudi Re ■This standard has been published on May 18, 2017, it establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts and supersedes IFRS 4 - Insurance contracts. ■ The new standard applies to insurance contracts issued, to all reinsurance contracts and to investment contracts with discretionary participating features provided the entity also issues insurance contracts. It requires to separate the following components from insurance contracts: i) embedded derivatives, if they meet specified criteria; ii) distinct investment components; and certain iii) any promise to transfer distinct goods or non- insurance services. These components should be accounted for separately in accordance with the related standards (IFRS 9 and IFRS 15). ■ IFRS 17 is a new accounting standard for (re)insurers that will be applicable to financial reporting periods beginning 1 January 2023. IFRS 17 is a significant development in accounting that will have a fundamental impact on the methodology, process, systems and results. ■ The new accounting standard will require a new approach to the measurement, reporting and disclosure of profitability for insurance and reinsurance contracts. Public www.saudi-re.com
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