Al Khaleej Takaful Releases Explanatory Statement in Regards to Not Distributing Dividends to Shareholders

March 13, 2018

Al Khaleej Takaful Insurance released the following disclosure:

1.      The Board of Directors, at its meeting on 21 February 2018, recommended the distribution of cash dividends amounting to 5% of the company's capital, equivalent to QR0.50 dirhams per share. The company disclosed the recommendation and specified that it is subject to the approval of the regulatory authorities and company's general assembly.

2.      On 12 March 2018, Central Bank of Qatar issued a conditional approval requiring the company to acknowledge the impairment losses on the market value of financial investments in the company’s income statement in accordance with the auditor’s appraisal and in compliance with the applicable accounting standards.

3.      In compliance with the letter of Central Bank of Qatar, the company will acknowledge the impairment losses on the market value of financial investments in the company’s income statement, and provision for impairment will be made, meaning that no dividends will be distributed to shareholders.